‘‘(iii) 75 percent in the case of 2010. 
In the case of plan years beginning in 2008, the 
funding target attainment percentage for the 
preceding plan year under subparagraph (A)(ii) 
may be determined using such methods of esti-
mation as the Secretary of the Treasury may 
provide. 
‘‘(C) SPECIAL RULE FOR EMPLOYEES OF-
FERED EARLY RETIREMENT IN 2006.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A)(ii), the additional actu-
arial assumptions described in paragraph 
(1)(B) shall not be taken into account with 
respect to any employee if— 
‘‘(I) such employee is employed 
by a specified automobile manufac-
turer, 
‘‘(II) such employee is offered a 
substantial amount of additional cash 
compensation, substantially enhanced 
retirement benefits under the plan, or 
materially reduced employment duties 
on the condition that by a specified 
date (not later than December 31, 
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ccoleman on PROD1PC71 with BILLS
2010) the employee retires (as defined 
under the terms of the plan), 
‘‘(III) such offer is made during 
2006 and pursuant to a bona fide re-
tirement incentive program and re-
quires, by the terms of the offer, that 
such offer can be accepted not later 
than a specified date (not later than 
December 31, 2006), and 
‘‘(IV) such employee does not 
elect to accept such offer before the 
specified date on which the offer ex-
pires. 
‘‘(ii) SPECIFIED AUTOMOBILE MANU-
FACTURER.—For purposes of clause (i), 
the term ‘specified automobile manufac-
turer’ means— 
‘‘(I) any manufacturer of auto-
mobiles, and 
‘‘(II) any manufacturer of auto-
mobile parts which supplies such parts 
directly to a manufacturer of auto-
mobiles and which, after a transaction 
or series of transactions ending in 
1999, ceased to be a member of a 
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ccoleman on PROD1PC71 with BILLS
controlled group which included such 
manufacturer of automobiles. 
‘‘(5) TRANSITION BETWEEN APPLICABLE FUND-
ING TARGETS AND BETWEEN APPLICABLE TARGET 
NORMAL COSTS.— 
‘‘(A) IN GENERAL.—In any case in which 
a plan which is in at-risk status for a plan year 
has been in such status for a consecutive period 
of fewer than 5 plan years, the applicable 
amount of the funding target and of the target 
normal cost shall be, in lieu of the amount de-
termined without regard to this paragraph, the 
sum of— 
‘‘(i) the amount determined under this 
section without regard to this subsection, 
plus 
‘‘(ii) the transition percentage for 
such plan year of the excess of the amount 
determined under this subsection (without 
regard to this paragraph) over the amount 
determined under this section without re-
gard to this subsection. 
‘‘(B) 
TRANSITION
PERCENTAGE.—For 
purposes of subparagraph (A), the transition 
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ccoleman on PROD1PC71 with BILLS
percentage shall be determined in accordance 
with the following table: 
‘‘If the consecutive number of 
years (including the plan year) 
The transition 
the plan is in at-risk status is— 
percentage is— 
1 .........................................................................................................
2 .........................................................................................................
3 .........................................................................................................
4 .........................................................................................................
80. 
‘‘(C) YEARS BEFORE EFFECTIVE DATE.— 
For purposes of this paragraph, plan years be-
ginning before 2008 shall not be taken into ac-
count. 
‘‘(6) SMALL PLAN EXCEPTION.—If, on each day 
during the preceding plan year, a plan had 500 or 
fewer participants, the plan shall not be treated as 
in at-risk status for the plan year. For purposes of 
this paragraph, all defined benefit plans (other than 
multiemployer plans) maintained by the same em-
ployer (or any member of such employer’s controlled 
group) shall be treated as 1 plan, but only partici-
pants with respect to such employer or member shall 
be taken into account and the rules of subsection 
(g)(2)(C) shall apply. 
‘‘(j) PAYMENT OF MINIMUM REQUIRED CONTRIBU-
TIONS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the due date for any payment of any minimum 
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ccoleman on PROD1PC71 with BILLS
required contribution for any plan year shall be 81⁄2 
months after the close of the plan year. 
‘‘(2) INTEREST.—Any payment required under 
paragraph (1) for a plan year that is made on a date 
other than the valuation date for such plan year 
shall be adjusted for interest accruing for the period 
between the valuation date and the payment date, at 
the effective rate of interest for the plan for such 
plan year. 
‘‘(3) ACCELERATED QUARTERLY CONTRIBUTION 
SCHEDULE FOR UNDERFUNDED PLANS.— 
‘‘(A) FAILURE
TO
TIMELY
MAKE
RE-
QUIRED INSTALLMENT.—In any case in which 
the plan has a funding shortfall for the pre-
ceding plan year, the employer maintaining the 
plan shall make the required installments under 
this paragraph and if the employer fails to pay 
the full amount of a required installment for 
the plan year, then the amount of interest 
charged under paragraph (2) on the under-
payment for the period of underpayment shall 
be determined by using a rate of interest equal 
to the rate otherwise used under paragraph (2) 
plus 5 percentage points. 
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ccoleman on PROD1PC71 with BILLS
‘‘(B) AMOUNT
OF
UNDERPAYMENT, PE-
RIOD
OF
UNDERPAYMENT.—For purposes of 
subparagraph (A)— 
‘‘(i) AMOUNT.—The amount of the 
underpayment shall be the excess of— 
‘‘(I) the required installment, 
over 
‘‘(II) the amount (if any) of the 
installment contributed to or under 
the plan on or before the due date for 
the installment. 
‘‘(ii) PERIOD OF UNDERPAYMENT.— 
The period for which any interest is 
charged under this paragraph with respect 
to any portion of the underpayment shall 
run from the due date for the installment 
to the date on which such portion is con-
tributed to or under the plan. 
‘‘(iii) ORDER
OF
CREDITING
CON-
TRIBUTIONS.—For 
purposes 
of 
clause 
(i)(II), contributions shall be credited 
against unpaid required installments in the 
order in which such installments are re-
quired to be paid. 
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ccoleman on PROD1PC71 with BILLS
‘‘(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— 
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ccoleman on PROD1PC71 with BILLS
‘‘(I) 90 percent of the minimum 
required 
contribution 
(determined 
without regard to this subsection) to 
the plan for the plan year under this 
section, or 
‘‘(II) 100 percent of the min-
imum required contribution (deter-
mined without regard to this sub-
section or 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 
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ccoleman on PROD1PC71 with BILLS
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 described in subsection 
(g)(2)(B)) 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 
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ccoleman on PROD1PC71 with BILLS
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 
paragraph— 
‘‘(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.— 
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ccoleman on PROD1PC71 with BILLS
‘‘(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 
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ccoleman on PROD1PC71 with BILLS
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. 
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ccoleman on PROD1PC71 with BILLS
‘‘(F) REGULATIONS.—The Secretary of the 
Treasury may prescribe such regulations as are 
necessary to carry out this paragraph. 
‘‘(k) IMPOSITION
OF LIEN WHERE FAILURE
TO 
MAKE REQUIRED CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—In the case of a plan 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. 
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‘‘(2) PLANS TO WHICH SUBSECTION APPLIES.— 
This subsection shall apply to a single-employer plan 
covered under section 4021 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-
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ccoleman on PROD1PC71 with BILLS
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 (j). 
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‘‘(B) DUE
DATE; 
REQUIRED
INSTALL-
MENT.—The terms ‘due date’ and ‘required in-
stallment’ have the meanings given such terms 
by subsection (j), 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 2007. 
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ccoleman on PROD1PC71 with BILLS
SEC. 
103. 
BENEFIT 
LIMITATIONS 
UNDER 
SINGLE-EM-
PLOYER PLANS. 
(a) FUNDING-BASED LIMITS
ON BENEFITS
AND 
BENEFIT
ACCRUALS
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 following new subsection: 
‘‘(g) FUNDING-BASED LIMITS
ON BENEFITS
AND 
BENEFIT
ACCRUALS
UNDER
SINGLE-EMPLOYER 
PLANS.— 
‘‘(1) FUNDING-BASED
LIMITATION
ON
SHUT-
DOWN BENEFITS AND OTHER UNPREDICTABLE CON-
TINGENT
EVENT
BENEFITS
UNDER
SINGLE-EM-
PLOYER PLANS.— 
‘‘(A) IN GENERAL.—If a participant of a 
defined benefit plan which is a single-employer 
plan is entitled to an unpredictable contingent 
event benefit payable with respect to any event 
occurring during any plan year, the plan shall 
provide that such benefit may not be provided 
if the adjusted funding target attainment per-
centage for such plan year— 
‘‘(i) is less than 60 percent, or 
‘‘(ii) would be less than 60 percent 
taking into account such occurrence. 
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