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‘‘(C) SERIOUSLY ENDANGERED PLANS.—In
the case of a plan in seriously endangered status,
the requirements of this paragraph are met if—
‘‘(i) the plan’s funded percentage as of
the close of the funding improvement period
equals or exceeds the percentage which is
equal to the sum of—
‘‘(I) such percentage as of the be-
ginning of such period, plus
‘‘(II) 33 percent of the difference
between 100 percent and the percentage
under subclause (I), and
‘‘(ii) there is no accumulated funding
deficiency for any plan year during the
funding improvement period (taking into
account any extension of amortization peri-
ods under section 304(d)).
‘‘(4) FUNDING IMPROVEMENT PERIOD.—For pur-
poses of this section—
‘‘(A) IN GENERAL.—The funding improve-
ment period for any funding improvement plan
adopted pursuant to this subsection is the 10-
year period beginning on the first day of the
first plan year of the multiemployer plan begin-
ning after the earlier of—
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‘‘(i) the second anniversary of the date
of the adoption of the funding improvement
plan, or
‘‘(ii) the expiration of the collective
bargaining agreements in effect on the due
date for the actuarial certification of endan-
gered status for the initial determination
year under subsection (b)(3)(A) and cov-
ering, as of such due date, at least 75 per-
cent of the active participants in such mul-
tiemployer plan.
‘‘(B) COORDINATION WITH CHANGES IN STA-
TUS.—
‘‘(i) PLANS
NO
LONGER
IN
ENDAN-
GERED STATUS.—If the plan’s actuary cer-
tifies under subsection (b)(3)(A) for a plan
year in any funding plan adoption period
or funding improvement period that the
plan is no longer in endangered status and
is not in critical status, the funding plan
adoption period or funding improvement
period, whichever is applicable, shall end as
of the close of the preceding plan year.
‘‘(ii) PLANS IN CRITICAL STATUS.—If
the plan’s actuary certifies under subsection
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(b)(3)(A) for a plan year in any funding
plan adoption period or funding improve-
ment period that the plan is in critical sta-
tus, the funding plan adoption period or
funding improvement period, whichever is
applicable, shall end as of the close of the
plan year preceding the first plan year in
the rehabilitation period with respect to
such status.
‘‘(C) PLANS
IN
ENDANGERED
STATUS
AT
END OF PERIOD.—If the plan’s actuary certifies
under subsection (b)(3)(A) for the first plan year
following the close of the period described in sub-
paragraph (A) that the plan is in endangered
status, the provisions of this subsection and sub-
section (d) shall be applied as if such first plan
year were an initial determination year, except
that the plan may not be amended in a manner
inconsistent with the funding improvement plan
in effect for the preceding plan year until a new
funding improvement plan is adopted.
‘‘(5) SPECIAL
RULES
FOR
CERTAIN
UNDER-
FUNDED PLANS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), if the funded percentage of a
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plan in seriously endangered status was 70 per-
cent or less as of the beginning of the initial de-
termination year, the following rules shall apply
in determining whether the requirements of
paragraph (3)(C)(i) are met:
‘‘(i) The plan’s funded percentage as of
the close of the funding improvement period
must equal or exceed a percentage which is
equal to the sum of—
‘‘(I) such percentage as of the be-
ginning of such period, plus
‘‘(II) 20 percent of the difference
between 100 percent and the percentage
under subclause (I).
‘‘(ii) The funding improvement period
under paragraph (4)(A) shall be 15 years
rather than 10 years.
‘‘(B) SPECIAL
RULES
FOR
PLANS
WITH
FUNDED PERCENTAGE OVER 70 PERCENT.—If the
funded percentage described in subparagraph (A)
was more than 70 percent but less than 80 per-
cent as of the beginning of the initial determina-
tion year—
‘‘(i) subparagraph (A) shall apply if
the plan’s actuary certifies, within 30 days
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after the certification under subsection
(b)(3)(A) for the initial determination year,
that, based on the terms of the plan and the
collective bargaining agreements in effect at
the time of such certification, the plan is
not projected to meet the requirements of
paragraph (3)(C)(i) without regard to this
paragraph, and
‘‘(ii) if there is a certification under
clause (i), the plan may, in formulating its
funding improvement plan, only take into
account the rules of subparagraph (A) for
plan years in the funding improvement pe-
riod beginning on or before the date on
which the last of the collective bargaining
agreements 
described 
in 
paragraph
(4)(A)(ii) expires.
Notwithstanding clause (ii), if for any plan year
ending after the date described in clause (ii) the
plan actuary certifies (at the time of the annual
certification under subsection (b)(3)(A) for such
plan year) that, based on the terms of the plan
and collective bargaining agreements in effect at
the time of that annual certification, the plan is
not projected to be able to meet the requirements
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of paragraph (3)(C)(i) without regard to this
paragraph, the plan may continue to assume for
such year that the funding improvement period
is 15 years rather than 10 years.
‘‘(6) UPDATES TO FUNDING IMPROVEMENT PLAN
AND SCHEDULES.—
‘‘(A) FUNDING
IMPROVEMENT
PLAN.—The
plan sponsor shall annually update the funding
improvement plan and shall file the update with
the plan’s annual report under section 104.
‘‘(B) SCHEDULES.—The plan sponsor may
periodically update any schedule of contribution
rates provided under this subsection to reflect the
experience of the plan, except that the schedule or
schedules described in paragraph (1)(B)(i) shall
be updated at least once every 3 years.
‘‘(C) DURATION OF SCHEDULE.—A schedule
of contribution rates provided by the plan spon-
sor and relied upon by bargaining parties in ne-
gotiating a collective bargaining agreement shall
remain in effect for the duration of that collec-
tive bargaining agreement.
‘‘(7) PENALTY
IF
NO
FUNDING
IMPROVEMENT
PLAN ADOPTED.—A failure of the plan sponsor to
adopt a funding improvement plan by the date speci-
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fied in paragraph (1)(A) shall be treated for purposes
of section 502(c)(2) as a failure or refusal by the plan
administrator to file the annual report required to be
filed with the Secretary under section 101(b)(4).
‘‘(8) FUNDING
PLAN
ADOPTION
PERIOD.—For
purposes of this section, the term ‘funding plan adop-
tion period’ means the period beginning on the date
of the certification under subsection (b)(3)(A) for the
initial determination year and ending on the day be-
fore the first day of the funding improvement period.
‘‘(d) RULES FOR OPERATION OF PLAN DURING ADOP-
TION AND IMPROVEMENT PERIODS; FAILURE TO MEET RE-
QUIREMENTS.—
‘‘(1) SPECIAL RULES FOR PLAN ADOPTION PE-
RIOD.—During the plan adoption period—
‘‘(A) the plan sponsor may not accept a col-
lective bargaining agreement or participation
agreement with respect to the multiemployer
plan that provides for—
‘‘(i) a reduction in the level of con-
tributions for any participants,
‘‘(ii) a suspension of contributions
with respect to any period of service, or
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‘‘(iii) any new direct or indirect exclu-
sion of younger or newly hired employees
from plan participation,
‘‘(B) no amendment of the plan which in-
creases the liabilities of the plan by reason of
any increase in benefits, any change in the ac-
crual of benefits, or any change in the rate at
which benefits become nonforfeitable under the
plan may be adopted unless the amendment is
required as a condition of qualification under
part I of subchapter D of chapter 1 of the Inter-
nal Revenue Code of 1986 or to comply with
other applicable law, and
‘‘(C) in the case of a plan in seriously en-
dangered status, the plan sponsor shall take all
reasonable actions which are consistent with the
terms of the plan and applicable law and which
are expected, based on reasonable assumptions, to
achieve—
‘‘(i) an increase in the plan’s funded
percentage, and
‘‘(ii) postponement of an accumulated
funding deficiency for at least 1 additional
plan year.
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Actions under subparagraph (C) include applications
for extensions of amortization periods under section
304(d), use of the shortfall funding method in making
funding standard account computations, amendments
to the plan’s benefit structure, reductions in future
benefit accruals, and other reasonable actions con-
sistent with the terms of the plan and applicable law.
‘‘(2) COMPLIANCE WITH FUNDING IMPROVEMENT
PLAN.—
‘‘(A) IN
GENERAL.—A plan may not be
amended after the date of the adoption of a fund-
ing improvement plan under subsection (c) so as
to be inconsistent with the funding improvement
plan.
‘‘(B) NO REDUCTION IN CONTRIBUTIONS.—
A plan sponsor may not during any funding im-
provement period accept a collective bargaining
agreement or participation agreement with re-
spect to the multiemployer plan that provides
for—
‘‘(i) a reduction in the level of con-
tributions for any participants,
‘‘(ii) a suspension of contributions
with respect to any period of service, or
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‘‘(iii) any new direct or indirect exclu-
sion of younger or newly hired employees
from plan participation.
‘‘(C) SPECIAL
RULES
FOR
BENEFIT
IN-
CREASES.—A plan may not be amended after the
date of the adoption of a funding improvement
plan under subsection (c) so as to increase bene-
fits, including future benefit accruals, unless—
‘‘(i) in the case of a plan in seriously
endangered status, the plan actuary certifies
that, after taking into account the benefit
increase, the plan is still reasonably ex-
pected to meet the requirements under sub-
section (c)(3) in accordance with the sched-
ule contemplated in the funding improve-
ment plan, and
‘‘(ii) in the case of a plan not in seri-
ously endangered status, the actuary cer-
tifies that such increase is paid for out of
contributions not required by the funding
improvement plan to meet the requirements
under subsection (c)(3) in accordance with
the schedule contemplated in the funding
improvement plan.
‘‘(3) FAILURE TO MEET REQUIREMENTS.—