240 
section 412(e) of the Internal Revenue Code of 1986 
with respect to any application filed with the Sec-
retary of the Treasury on or before June 30, 2005, 
the extension (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 deter-
mined under section 6621(b) of such Code. 
SEC. 202. ADDITIONAL FUNDING RULES FOR MULTIEM-
PLOYER PLANS IN ENDANGERED OR CRIT-
ICAL STATUS. 
(a) IN GENERAL.—Part 3 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 (as 
amended by the preceding provisions of this Act) is 
amended by inserting after section 304 the following new 
section: 
‘‘ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER 
PLANS IN ENDANGERED STATUS OR CRITICAL STATUS 
‘‘SEC. 305. (a) GENERAL RULE.—For purposes of 
this part, in the case of a multiemployer plan in effect 
on July 16, 2006— 
‘‘(1) if the plan is in endangered status— 
‘‘(A) the plan sponsor shall adopt and im-
plement a funding improvement plan in accord-
ance with the requirements of subsection (c), 
and 
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241 
‘‘(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 adop-
tion period and the rehabilitation period. 
‘‘(b) DETERMINATION OF ENDANGERED AND CRIT-
ICAL 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, as of the beginning of the plan year, ei-
ther— 
‘‘(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 any of the 6 succeeding plan years, taking 
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242 
into account any extension of amortization peri-
ods under section 304(d). 
For purposes of this section, a plan shall be treated 
as in seriously endangered status for a plan year if 
the plan is described in both subparagraphs (A) and 
(B). 
‘‘(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 subpara-
graphs 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 fair market value of plan 
assets, plus 
‘‘(II) the present value of the 
reasonably anticipated employer con-
tributions for the current plan year 
and each of the 6 succeeding plan 
years, assuming that the terms of all 
collective bargaining agreements pur-
suant to which the plan is maintained 
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243 
for the current plan year continue in 
effect for succeeding plan years, 
is less than the present value of all non-
forfeitable benefits projected to be payable 
under the plan during the current plan 
year and each of the 6 succeeding plan 
years (plus administrative expenses for 
such plan years). 
‘‘(B) A plan is described in this subpara-
graph if— 
‘‘(i) the plan has an accumulated 
funding deficiency for the current plan 
year, not taking into account any extension 
of amortization periods under section 
304(d), or 
‘‘(ii) the plan is projected to have an 
accumulated funding deficiency for any of 
the 3 succeeding plan years (4 succeeding 
plan years if the funded percentage of the 
plan is 65 percent or less), not taking into 
account any extension of amortization peri-
ods under section 304(d). 
‘‘(C) A plan is described in this subpara-
graph if— 
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‘‘(i)(I) the plan’s normal cost for the 
current plan year, plus interest (deter-
mined at the rate used for determining 
costs under the plan) for the current plan 
year on the amount of unfunded benefit li-
abilities under the plan as of the last date 
of the preceding plan year, exceeds 
‘‘(II) the present value of the reason-
ably anticipated employer and employee 
contributions for the current plan year, 
‘‘(ii) the present value, as of the be-
ginning of the current plan year, of non-
forfeitable benefits of inactive participants 
is greater than the present value of non-
forfeitable benefits of active participants, 
and 
‘‘(iii) the plan has an accumulated 
funding deficiency for the current plan 
year, or is projected to have such a defi-
ciency for any of the 4 succeeding plan 
years, not taking into account any exten-
sion of amortization periods under section 
304(d). 
‘‘(D) A plan is described in this subpara-
graph if the sum of— 
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‘‘(i) the fair market value of plan as-
sets, plus 
‘‘(ii) the present value of the reason-
ably anticipated employer contributions for 
the current plan year and each of the 4 
succeeding plan years, assuming that the 
terms of all collective bargaining agree-
ments pursuant to which the plan is main-
tained for the current plan year continue 
in effect for succeeding plan years, 
is less than the present value of all benefits pro-
jected to be payable under the plan during the 
current plan year and each of the 4 succeeding 
plan years (plus administrative expenses for 
such plan years). 
‘‘(3) ANNUAL CERTIFICATION BY PLAN ACTU-
ARY.— 
‘‘(A) IN
GENERAL.—Not later than the 
90th day of each plan year of a multiemployer 
plan, the plan actuary shall certify to the Sec-
retary of the Treasury and to the plan spon-
sor— 
‘‘(i) whether or not the plan is in en-
dangered status for such plan year and 
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