‘‘(C) NUMBER
OF
REQUIRED
INSTALL-
MENTS; DUE
DATES.—For purposes of this 
paragraph—
‘‘(i) PAYABLE IN 4 INSTALLMENTS.—
There shall be 4 required installments for 
each plan year. 
‘‘(ii) TIME
FOR
PAYMENT
OF
IN-
STALLMENTS.—The due dates for required 
installments are set forth in the following 
table:
‘‘In the case of the following 
required installment:
The due date is: 
1st ...........................................................................
April 15
2nd .........................................................................
July 15
3rd ..........................................................................
October 15
4th ..........................................................................
January 15 of the fol-
lowing year 
‘‘(D) AMOUNT
OF
REQUIRED
INSTALL-
MENT.—For purposes of this paragraph—
‘‘(i) IN
GENERAL.—The amount of 
any required installment shall be 25 per-
cent of the required annual payment. 
‘‘(ii) REQUIRED ANNUAL PAYMENT.—
For purposes of clause (i), the term ‘re-
quired annual payment’ means the lesser 
of—
‘‘(I) 90 percent of the minimum 
required contribution (without regard
to any waiver under section 302(c)) to 
the plan for the plan year under this 
section, or 
‘‘(II) in the case of a plan year 
beginning after 2006, 100 percent of 
the minimum required contribution 
(without regard to any waiver under 
section 302(c)) to the plan for the 
preceding plan year. 
Subclause (II) shall not apply if the pre-
ceding plan year referred to in such clause 
was not a year of 12 months. 
‘‘(E) FISCAL YEARS AND SHORT YEARS.—
‘‘(i) FISCAL YEARS.—In applying this 
paragraph to a plan year beginning on any 
date other than January 1, there shall be 
substituted for the months specified in this 
paragraph, the months which correspond 
thereto. 
‘‘(ii) SHORT PLAN YEAR.—This sub-
paragraph shall be applied to plan years of 
less than 12 months in accordance with 
regulations prescribed by the Secretary of 
the Treasury.
‘‘(4) LIQUIDITY REQUIREMENT IN CONNECTION 
WITH QUARTERLY CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—A plan to which this 
paragraph applies shall be treated as failing to 
pay the full amount of any required installment 
under paragraph (3) to the extent that the 
value of the liquid assets paid in such install-
ment is less than the liquidity shortfall (wheth-
er or not such liquidity shortfall exceeds the 
amount of such installment required to be paid 
but for this paragraph). 
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to a plan 
(other than a plan that would be described in 
subsection (e)(3)(B) if ‘100’ were substituted 
for ‘500’ therein) which—
‘‘(i) is required to pay installments 
under paragraph (3) for a plan year, and 
‘‘(ii) has a liquidity shortfall for any 
quarter during such plan year. 
‘‘(C) PERIOD
OF
UNDERPAYMENT.—For 
purposes of paragraph (3)(A), any portion of an 
installment that is treated as not paid under 
subparagraph (A) shall continue to be treated
as unpaid until the close of the quarter in 
which the due date for such installment occurs. 
‘‘(D) LIMITATION
ON
INCREASE.—If the 
amount of any required installment is increased 
by reason of subparagraph (A), in no event 
shall such increase exceed the amount which, 
when added to prior installments for the plan 
year, is necessary to increase the funding target 
attainment percentage of the plan for the plan 
year (taking into account the expected increase 
in funding target due to benefits accruing or 
earned during the plan year) to 100 percent. 
‘‘(E) DEFINITIONS.—For purposes of this 
subparagraph: 
‘‘(i) 
LIQUIDITY
SHORTFALL.—The 
term ‘liquidity shortfall’ means, with re-
spect to any required installment, an 
amount equal to the excess (as of the last 
day of the quarter for which such install-
ment is made) of—
‘‘(I) the base amount with re-
spect to such quarter, over 
‘‘(II) the value (as of such last 
day) of the plan’s liquid assets. 
‘‘(ii) BASE AMOUNT.—
‘‘(I) IN
GENERAL.—The term 
‘base amount’ means, with respect to 
any quarter, an amount equal to 3 
times the sum of the adjusted dis-
bursements from the plan for the 12 
months ending on the last day of such 
quarter. 
‘‘(II) SPECIAL
RULE.—If the 
amount determined under subclause 
(I) exceeds an amount equal to 2 
times the sum of the adjusted dis-
bursements from the plan for the 36 
months ending on the last day of the 
quarter and an enrolled actuary cer-
tifies to the satisfaction of the Sec-
retary of the Treasury that such ex-
cess is the result of nonrecurring cir-
cumstances, the base amount with re-
spect to such quarter shall be deter-
mined without regard to amounts re-
lated 
to 
those 
nonrecurring 
cir-
cumstances. 
‘‘(iii) DISBURSEMENTS
FROM
THE 
PLAN.—The term ‘disbursements from the 
plan’ means all disbursements from the
trust, including purchases of annuities, 
payments of single sums and other bene-
fits, and administrative expenses. 
‘‘(iv) ADJUSTED
DISBURSEMENTS.—
The term ‘adjusted disbursements’ means 
disbursements from the plan reduced by 
the product of—
‘‘(I) the plan’s funding target at-
tainment percentage for the plan year, 
and 
‘‘(II) the sum of the purchases of 
annuities, payments of single sums, 
and such other disbursements as the 
Secretary of the Treasury shall pro-
vide in regulations. 
‘‘(v) LIQUID ASSETS.—The term ‘liq-
uid assets’ means cash, marketable securi-
ties, and such other assets as specified by 
the Secretary of the Treasury in regula-
tions. 
‘‘(vi) QUARTER.—The term ‘quarter’ 
means, with respect to any required install-
ment, the 3-month period preceding the 
month in which the due date for such in-
stallment occurs.
‘‘(F) REGULATIONS.—The Secretary of the 
Treasury may prescribe such regulations as are 
necessary to carry out this paragraph. 
‘‘(j) WAIVER AMORTIZATION CHARGE.—
‘‘(1) IN
GENERAL.—The minimum required 
contribution for any plan year under subsection (a) 
shall be increased by the amount of the waiver am-
ortization charge (if any) for such plan year. 
‘‘(2) DETERMINATION
OF
WAIVER
AMORTIZA-
TION CHARGE.—The waiver amortization charge for 
a plan for any plan year is the aggregate total of the 
waiver amortization installments for such plan year 
with respect to the waiver amortization bases for 
such plan year and each of the 4 preceding plan 
years. 
‘‘(3) WAIVER AMORTIZATION INSTALLMENT.—
For purposes of paragraph (2), the plan sponsor 
shall determine, with respect to the waiver amortiza-
tion base of the plan for any plan year, the amounts 
necessary to amortize such waiver amortization base, 
in level annual installments over a period of 5 plan 
years beginning with such plan year. The annual in-
stallment of such amortization for each plan year in 
such 5-plan year period is the waiver amortization
installment for such plan year with respect to such 
waiver amortization base. 
‘‘(4) COMPUTATION ASSUMPTIONS.—The deter-
mination of any annual installment under paragraph 
(2) for any plan year shall be made as of the valu-
ation date for such plan year, using the effective 
rate of interest for the plan for the preceding plan 
year. 
‘‘(5) WAIVER AMORTIZATION BASE.—The waiv-
er amortization base of a plan for a plan year is the 
excess (if any) of—
‘‘(A) the portion of the minimum required 
contribution of such plan waived under section 
302(c) for such plan year, over 
‘‘(B) the aggregate total of the waiver am-
ortization installments, for such plan year and 
the 3 succeeding plan years, which have been 
determined with respect to the waiver amortiza-
tion bases of the plan for each of the 4 plan 
years preceding such plan year. 
‘‘(k) IMPOSITION
OF LIEN WHERE FAILURE
TO 
MAKE REQUIRED CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—In the case of a plan cov-
ered under section 4021 of this Act and to which
this subsection applies (as provided under paragraph 
(2)), if—
‘‘(A) any person fails to make a contribu-
tion payment required by section 302 and this 
section before the due date for such payment, 
and 
‘‘(B) the unpaid balance of such payment 
(including interest), when added to the aggre-
gate unpaid balance of all preceding such pay-
ments for which payment was not made before 
the due date (including interest), exceeds 
$1,000,000, 
then there shall be a lien in favor of the plan in the 
amount determined under paragraph (3) upon all 
property and rights to property, whether real or per-
sonal, belonging to such person and any other per-
son who is a member of the same controlled group 
of which such person is a member. 
‘‘(2) PLANS TO WHICH SUBSECTION APPLIES.—
This subsection shall apply to a defined benefit plan 
which is a single-employer plan for any plan year for 
which the funding target attainment percentage (as 
defined in subsection (d)(2)) of such plan is less 
than 100 percent.
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to 
the aggregate unpaid balance of contribution pay-
ments required under this section and section 302 
for which payment has not been made before the due 
date. 
‘‘(4) NOTICE OF FAILURE; LIEN.—
‘‘(A) NOTICE
OF
FAILURE.—A person 
committing a failure described in paragraph (1) 
shall notify the Pension Benefit Guaranty Cor-
poration of such failure within 10 days of the 
due date for the required contribution payment. 
‘‘(B) PERIOD OF LIEN.—The lien imposed 
by paragraph (1) shall arise on the due date for 
the required contribution payment and shall 
continue until the last day of the first plan year 
in which the plan ceases to be described in 
paragraph (1)(B). Such lien shall continue to 
run without regard to whether such plan con-
tinues to be described in paragraph (2) during 
the period referred to in the preceding sentence. 
‘‘(C) CERTAIN
RULES
TO
APPLY.—Any 
amount with respect to which a lien is imposed 
under paragraph (1) shall be treated as taxes 
due and owing the United States and rules
similar to the rules of subsections (c), (d), and 
(e) of section 4068 shall apply with respect to 
a lien imposed by subsection (a) and the 
amount with respect to such lien. 
‘‘(5) ENFORCEMENT.—Any lien created under 
paragraph (1) may be perfected and enforced only 
by the Pension Benefit Guaranty Corporation, or at 
the direction of the Pension Benefit Guaranty Cor-
poration, by the contributing sponsor (or any mem-
ber of the controlled group of the contributing spon-
sor). 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) CONTRIBUTION PAYMENT.—The term 
‘contribution payment’ means, in connection 
with a plan, a contribution payment required to 
be made to the plan, including any required in-
stallment under paragraphs (3) and (4) of sub-
section (i). 
‘‘(B) DUE
DATE; 
REQUIRED
INSTALL-
MENT.—The terms ‘due date’ and ‘required in-
stallment’ have the meanings given such terms 
by subsection (i), except that in the case of a 
payment other than a required installment, the
due date shall be the date such payment is re-
quired to be made under section 303. 
‘‘(C) CONTROLLED
GROUP.—The term 
‘controlled group’ means any group treated as 
a single employer under subsections (b), (c), 
(m), and (o) of section 414 of the Internal Rev-
enue Code of 1986. 
‘‘(l) QUALIFIED TRANSFERS TO HEALTH BENEFIT 
ACCOUNTS.—In the case of a qualified transfer (as de-
fined in section 420 of the Internal Revenue Code of 
1986), any assets so transferred shall not, for purposes 
of this section, be treated as assets in the plan.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
in section 1 of such Act (as amended by section 101) is 
amended by inserting after the item relating to section 
302 the following new item:
‘‘Sec. 303. Minimum funding standards for single-employer defined benefit pen-
sion plans.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after 2005. 
SEC. 103. LIMITATIONS ON DISTRIBUTIONS AND BENEFIT 
ACCRUALS 
UNDER 
SINGLE-EMPLOYER 
PLANS. 
(a) PROHIBITION
OF SHUTDOWN BENEFITS
AND 
OTHER UNPREDICTABLE CONTINGENT EVENT BENEFITS
UNDER SINGLE-EMPLOYER PLANS.—Section 206 of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) PROHIBITION OF SHUTDOWN BENEFITS AND 
OTHER UNPREDICTABLE CONTINGENT EVENT BENEFITS 
UNDER SINGLE-EMPLOYER PLANS.—
‘‘(1) IN GENERAL.—No pension plan which is a 
single-employer plan may provide benefits which are 
payable upon the occurrence of—
‘‘(A) a plant shutdown, or 
‘‘(B) any other unpredictable contingent 
event. 
‘‘(2) UNPREDICTABLE CONTINGENT EVENT.—
For purposes of this subsection, the term ‘unpredict-
able contingent event’ means an event other than—
‘‘(A) attainment of any age, performance 
of any service, receipt or derivation of any com-
pensation, or the occurrence of death or dis-
ability, or 
‘‘(B) an event which is reasonably and reli-
ably predictable (as determined by the Sec-
retary of the Treasury).’’. 
(b) OTHER LIMITS ON BENEFITS AND BENEFIT AC-
CRUALS.—
(1) IN GENERAL.—Section 206 of such Act (as 
amended by subsection (a)) is amended further by 
adding at the end the following new subsection: 
‘‘(h) FUNDING-BASED LIMITS ON BENEFITS AND 
BENEFIT
ACCRUALS
UNDER
SINGLE-EMPLOYER 
PLANS.—
‘‘(1) LIMITATIONS ON PLAN AMENDMENTS IN-
CREASING LIABILITY FOR BENEFITS.—
‘‘(A) IN GENERAL.—No amendment to a 
single-employer plan which has the effect of in-
creasing liabilities of the plan by reason of in-
creases in benefits, establishment of new bene-
fits, changing the rate of benefit accrual, or 
changing the rate at which benefits become 
nonforfeitable to the plan may take effect dur-
ing any plan year if the funding target attain-
ment percentage as of the valuation date of the 
plan for such plan year is—
‘‘(i) less than 80 percent, or 
‘‘(ii) would be less than 80 percent 
taking into account such amendment. 
‘‘(B) 
EXEMPTION.—Subparagraph 
(A) 
shall cease to apply with respect to any plan 
year, effective as of the first date of the plan 
year (or if later, the effective date of the