305 
HR 2830 PCS 
‘‘(A) IN GENERAL.—In the case of a multi-
employer plan to which section 432(c) applies, 
there is hereby imposed a tax on each failure to 
make a required contribution under the reha-
bilitation plan within the time required under 
such plan. 
‘‘(B) AMOUNT OF TAX.—The amount of 
the tax imposed by subparagraph (A) shall be, 
with respect to each required contribution 
under the rehabilitation plan, the amount equal 
to the excess of the amount of such required 
contribution over the amount contributed. 
‘‘(C) LIABILITY
FOR
TAX.—The tax im-
posed by subparagraph (A) shall be paid by the 
employer responsible for contributing to or 
under the rehabilitation plan which fails to 
make the contribution. 
‘‘(4) REHABILITATION PLAN.—For purposes of 
this subsection, the term ‘rehabilitation plan’ means 
the plan required to be adopted under section 
432(c).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part III of subchapter D of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item:
306 
HR 2830 PCS 
‘‘Sec. 432. Additional funding rules for multiemployer plans in endangered sta-
tus or critical status.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after December 31, 2005. 
(e) SPECIAL RULE FOR 2006.—In the case of any 
plan year beginning in 2006, any reference in section 432 
of the Internal Revenue Code of 1986 (as added by this 
section) to section 431 of such Code (as added by this 
Act) shall be treated as a reference to the corresponding 
provision of such Code as in effect for plan years begin-
ning in such year. 
SEC. 213. MEASURES TO FORESTALL INSOLVENCY OF MUL-
TIEMPLOYER PLANS. 
(a) ADVANCE DETERMINATION OF IMPENDING IN-
SOLVENCY OVER 5 YEARS.—Section 418E(d)(1) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘3 plan years’’ the second place 
it appears and inserting ‘‘5 plan years’’, and 
(2) by adding at the end the following new sen-
tence: ‘‘If the plan sponsor makes such a determina-
tion that the plan will be insolvent in any of the next 
5 plan years, the plan sponsor shall make the com-
parison under this paragraph at least annually until 
the plan sponsor makes a determination that the
307 
HR 2830 PCS 
plan will not be insolvent in any of the next 5 plan 
years.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to determinations 
made in plan years beginning after December 31, 2005. 
TITLE III—OTHER PROVISIONS 
SEC. 301. INTEREST RATE FOR 2006 FUNDING REQUIRE-
MENTS. 
(a) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN
GENERAL.—Subclause (II) of section 
302(b)(5)(B)(ii) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1082(b)(5)(B)(ii)) 
is amended— 
(A) by striking ‘‘January 1, 2006’’ and in-
serting ‘‘January 1, 2007’’, and 
(B) by striking ‘‘AND 2005’’ in the heading 
and inserting ‘‘, 2005, AND 2006’’. 
(2) CURRENT
LIABILITY.—Subclause (IV) of 
section 302(d)(7)(C)(i) of such Act (29 U.S.C. 
1082(d)(7)(C)(i)) is amended— 
(A) by striking ‘‘or 2005’’ and inserting ‘‘, 
2005, or 2006’’, and 
(B) by striking ‘‘AND 2005’’ in the heading 
and inserting ‘‘, 2005, AND 2006’’.
308 
HR 2830 PCS 
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN
GENERAL.—Subclause (II) of section 
412(b)(5)(B)(ii) of the Internal Revenue Code of 
1986 is amended— 
(A) by striking ‘‘January 1, 2006’’ and in-
serting ‘‘January 1, 2007’’, and 
(B) by striking ‘‘AND 2005’’ in the heading 
and inserting ‘‘, 2005, AND 2006’’. 
(2) CURRENT
LIABILITY.—Subclause (IV) of 
section 412(l)(7)(C)(i) of such Code is amended— 
(A) by striking ‘‘or 2005’’ and inserting ‘‘, 
2005, or 2006’’, and 
(B) by striking ‘‘AND 2005’’ in the heading 
and inserting ‘‘, 2005, AND 2006’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2005. 
SEC. 302. INTEREST RATE ASSUMPTION FOR DETERMINA-
TION OF LUMP SUM DISTRIBUTIONS. 
(a) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Paragraph (3) of section 
205(g) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1055(g)(3)) is amended to read as 
follows:
309 
HR 2830 PCS 
‘‘(3)(A) For purposes of paragraphs (1) and (2), the 
present value shall not be less than the present value cal-
culated by using the applicable mortality table and the ap-
plicable interest rate. 
‘‘(B) For purposes of subparagraph (A)— 
‘‘(i) The term ‘applicable mortality table’ means 
a mortality table, modified as appropriate by the 
Secretary of the Treasury, based on the mortality 
table specified for the plan year under section 
303(h)(3). 
‘‘(ii) The term ‘applicable interest rate’ means 
the adjusted first, second, and third segment rates 
applied under rules similar to the rules of section 
303(h)(2)(C) for the month before the date of the 
distribution or such other time as the Secretary of 
the Treasury may by regulations prescribe. 
‘‘(iii) For purposes of clause (ii), the adjusted 
first, second, and third segment rates are the first, 
second, and third segment rates which would be de-
termined under section 303(h)(2)(C) if— 
‘‘(I) section 303(h)(2)(D)(i) were applied 
by substituting ‘the yields’ for ‘a 3-year weight-
ed average of yields’, 
‘‘(II) section 303(h)(2)(G)(i)(II) were ap-
plied 
by 
substituting 
‘section