219
within the permissible range, the plan shall 
establish a new rate of interest within the 
permissible range. 
‘‘(ii) PERMISSIBLE RANGE.—For pur-
poses of this subparagraph—
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the term 
‘permissible range’ means a rate of in-
terest which is not more than 5 per-
cent above, and not more than 10 per-
cent below, the weighted average of 
the rates of interest on 30-year Treas-
ury securities during the 4-year period 
ending on the last day before the be-
ginning of the plan year. 
‘‘(II) 
SECRETARIAL
AUTHOR-
ITY.—If the Secretary finds that the 
lowest rate of interest permissible 
under subclause (I) is unreasonably 
high, the Secretary may prescribe a 
lower rate of interest, except that 
such rate may not be less than 80 
percent of the average rate deter-
mined under such subclause.
220
‘‘(iii) 
ASSUMPTIONS.—Notwith-
standing paragraph (3)(A), the interest 
rate used under the plan shall be—
‘‘(I) determined without taking 
into account the experience of the 
plan and reasonable expectations, but 
‘‘(II) consistent with the assump-
tions which reflect the purchase rates 
which would be used by insurance 
companies to satisfy the liabilities 
under the plan. 
‘‘(E) FULL
FUNDING
LIMITATION.—For 
purposes of this paragraph, unless otherwise 
provided by the plan, the accrued liability under 
a multiemployer plan shall not include benefits 
which are not nonforfeitable under the plan 
after the termination of the plan (taking into 
consideration section 411(d)(3)). 
‘‘(7) ANNUAL VALUATION.—
‘‘(A) IN GENERAL.—For purposes of this 
section, a determination of experience gains and 
losses and a valuation of the plan’s liability 
shall be made not less frequently than once 
every year, except that such determination shall 
be made more frequently to the extent required
221
in particular cases under regulations prescribed 
by the Secretary. 
‘‘(B) VALUATION DATE.—
‘‘(i) CURRENT YEAR.—Except as pro-
vided in clause (ii), the valuation referred 
to in subparagraph (A) shall be made as of 
a date within the plan year to which the 
valuation refers or within one month prior 
to the beginning of such year. 
‘‘(ii) USE
OF
PRIOR
YEAR
VALU-
ATION.—The valuation referred to in sub-
paragraph (A) may be made as of a date 
within the plan year prior to the year to 
which the valuation refers if, as of such 
date, the value of the assets of the plan are 
not less than 100 percent of the plan’s cur-
rent liability (as defined in paragraph 
(6)(C) without regard to clause (iv) there-
of). 
‘‘(iii) 
ADJUSTMENTS.—Information 
under clause (ii) shall, in accordance with 
regulations, be actuarially adjusted to re-
flect significant differences in participants. 
‘‘(iv) LIMITATION.—A change in fund-
ing method to use a prior year valuation,
222
as provided in clause (ii), may not be made 
unless as of the valuation date within the 
prior plan year, the value of the assets of 
the plan are not less than 125 percent of 
the plan’s current liability (as defined in 
paragraph (6)(C) without regard to clause 
(iv) thereof). 
‘‘(8) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—For purposes of this section, any 
contributions for a plan year made by an employer 
after the last day of such plan year, but not later 
than two and one-half months after such day, shall 
be deemed to have been made on such last day. For 
purposes of this subparagraph, such two and one-
half month period may be extended for not more 
than six months under regulations prescribed by the 
Secretary. 
‘‘(d) EXTENSION OF AMORTIZATION PERIODS FOR 
MULTIEMPLOYER PLANS.—In the case of a multiemployer 
plan—
‘‘(1) AUTOMATIC
EXTENSION.—The Secretary 
shall, upon application and subject to the require-
ments of paragraph (4), extend the period of years 
required to amortize any unfunded liability (de-
223
scribed in any clause of subsection (b)(2)(B)) of the 
plan for a period of time not in excess of 5 years. 
‘‘(2) EXTENSION FOR CAUSE.—The period of 
years required to amortize any unfunded liability 
(described in any clause of subsection (b)(2)(B)) of 
any multiemployer plan may be extended (in addi-
tion to any extension under paragraph (1)) by the 
Secretary for a period of time (not in excess of 5 
years) if he determines that such extension would 
carry out the purposes of this Act and would provide 
adequate protection for participants under the plan 
and their beneficiaries and if he determines that the 
failure to permit such extension would—
‘‘(A) result in—
‘‘(i) a substantial risk to the voluntary 
continuation of the plan, or 
‘‘(ii) a substantial curtailment of pen-
sion benefit levels or employee compensa-
tion, and 
‘‘(B) be adverse to the interests of plan 
participants in the aggregate. 
‘‘(3) INTEREST RATE.—The interest rate appli-
cable for any plan year under any arrangement en-
tered into by the Secretary in connection with an ex-
224
tension granted under this subsection shall be the 
greater of—
‘‘(A) 150 percent of the Federal mid-term 
rate (as in effect under section 1274 for the 1st 
month of such plan year), or 
‘‘(B) the rate of interest used under the 
plan for determining costs. 
‘‘(4) REQUIRED NOTICE.—
‘‘(A) IN GENERAL.—The Secretary shall, 
before granting an extension under this section, 
require each applicant to provide evidence satis-
factory to the Secretary that the applicant has 
provided notice of the filing of the application 
for such extension to each employee organiza-
tion representing employees covered by the af-
fected plan and to the Pension Benefit Guar-
anty Corporation. 
‘‘(B) CONSIDERATION
OF
RELEVANT
IN-
FORMATION.—The Secretary shall consider any 
relevant information provided by a person to 
whom notice was given under paragraph (1). 
‘‘(e) RESTRICTION ON PLAN AMENDMENTS.—
‘‘(1) IN GENERAL.—No amendment of a multi-
employer plan which increases the liabilities of the 
plan by reason of any increase in benefits, any
225
change in the accrual of benefits, or any change in 
the rate at which benefits become nonforfeitable 
under the plan shall be adopted if a waiver under 
section 412(c) or an extension of time under sub-
section (d) is in effect with respect to the plan, or 
if a plan amendment described in section 412(d)(2) 
has been made at any time in the preceding 24 
months. If a plan is amended in violation of the pre-
ceding sentence, any such waiver, or extension of 
time, shall not apply to any plan year ending on or 
after the date on which such amendment is adopted. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to any plan amendment which—
‘‘(A) the Secretary determines to be rea-
sonable and which provides for only de minimis 
increases in the liabilities of the plan, 
‘‘(B) only repeals an amendment described 
in section 412(d)(2), or 
‘‘(C) is required as a condition of qualifica-
tion under part I of subchapter D, of chapter 
1.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 418(b)(2) of such Code is amend-
ed—