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extension shall be in addition to any extension
under paragraph (1).
‘‘(B) DETERMINATION.—The Secretary may
grant an extension under subparagraph (A) if
the Secretary determines that—
‘‘(i) such extension would carry out the
purposes of this Act and would provide ade-
quate protection for participants under the
plan and their beneficiaries, and
‘‘(ii) the failure to permit such exten-
sion would—
‘‘(I) result in a substantial risk to
the voluntary continuation of the plan,
or a substantial curtailment of pension
benefit levels or employee compensa-
tion, and
‘‘(II) be adverse to the interests of
plan participants in the aggregate.
‘‘(C) ACTION
BY
SECRETARY.—The Sec-
retary shall act upon any application for an ex-
tension under this paragraph within 180 days of
the submission of such application. If the Sec-
retary rejects the application for an extension
under this paragraph, the Secretary shall pro-
vide notice to the plan detailing the specific rea-
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sons for the rejection, including references to the
criteria set forth above.
‘‘(3) ADVANCE NOTICE.—
‘‘(A) IN GENERAL.—The Secretary shall, be-
fore granting an extension under this subsection,
require each applicant to provide evidence satis-
factory to such Secretary that the applicant has
provided notice of the filing of the application
for such extension to each affected party (as de-
fined in section 4001(a)(21) of the Employee Re-
tirement Income Security Act of 1974) with re-
spect to the affected plan. Such notice shall in-
clude a description of the extent to which the
plan is funded for benefits which are guaranteed
under title IV of such Act and for benefit liabil-
ities.
‘‘(B) CONSIDERATION OF RELEVANT INFOR-
MATION.—The Secretary shall consider any rel-
evant information provided by a person to whom
notice was given under paragraph (1).’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall apply to plan years beginning after
2006.
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(2) SPECIAL RULE FOR CERTAIN AMORTIZATION
EXTENSIONS.—If the Secretary of the Treasury grants
an extension under section 304 of the Employee Re-
tirement Income Security Act of 1974 and section
412(e) of the Internal Revenue Code of 1986 with re-
spect to any application filed with the Secretary of
the Treasury on or before June 30, 2005, the exten-
sion (and any modification thereof) shall be applied
and administered under the rules of such sections as
in effect before the enactment of this Act, including
the use of the rate of interest determined under section
6621(b) of such Code.
SEC. 212. ADDITIONAL FUNDING RULES FOR MULTIEM-
PLOYER PLANS IN ENDANGERED OR CRIT-
ICAL STATUS.
(a) IN GENERAL.—Subpart A of part III of subchapter
D of chapter 1 of the Internal Revenue Code of 1986 (as
amended by this Act) is amended by inserting after section
431 the following new section:
‘‘SEC. 432. ADDITIONAL FUNDING RULES FOR MULTIEM-
PLOYER PLANS IN ENDANGERED STATUS OR
CRITICAL STATUS.
‘‘(a) GENERAL RULE.—For purposes of this part, in
the case of a multiemployer plan—
‘‘(1) if the plan is in endangered status—
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‘‘(A) the plan sponsor shall adopt and im-
plement a funding improvement plan in accord-
ance with the requirements of subsection (c), and
‘‘(B) the requirements of subsection (d) shall
apply during the funding plan adoption period
and the funding improvement period, and
‘‘(2) if the plan is in critical status—
‘‘(A) the plan sponsor shall adopt and im-
plement a rehabilitation plan in accordance with
the requirements of subsection (e), and
‘‘(B) the requirements of subsection (f) shall
apply during the rehabilitation plan adoption
period and the rehabilitation period.
‘‘(b) DETERMINATION OF ENDANGERED AND CRITICAL
STATUS.—For purposes of this section—
‘‘(1) ENDANGERED
STATUS.—A multiemployer
plan is in endangered status for a plan year if, as
determined by the plan actuary under paragraph (3),
the plan is not in critical status for the plan year
and either—
‘‘(A) the plan’s funded percentage for such
plan year is less than 80 percent, or
‘‘(B) the plan has an accumulated funding
deficiency for such plan year, or is projected to
have such an accumulated funding deficiency for
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any of the 6 succeeding plan years, taking into
account any extension of amortization periods
under section 431(d).
For purposes of this section, a plan described in sub-
paragraph (B) shall be treated as in seriously endan-
gered status.
‘‘(2) CRITICAL STATUS.—A multiemployer plan
is in critical status for a plan year if, as determined
by the plan actuary under paragraph (3), the plan is
described in 1 or more of the following subparagraphs
as of the beginning of the plan year:
‘‘(A) A plan is described in this subpara-
graph if—
‘‘(i) the funded percentage of the plan
is less than 65 percent, and
‘‘(ii) the sum of—
‘‘(I) the market value of plan as-
sets, plus
‘‘(II) the present value of the rea-
sonably anticipated employer contribu-
tions for the current plan year and
each of the 5 succeeding plan years, as-
suming that the terms of all collective
bargaining agreements pursuant to
which the plan is maintained for the