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of a contribution (in addition to any minimum 
required contribution under section 303) equal 
to— 
‘‘(i) in the case of subparagraph 
(A)(i), the amount of the increase in the 
funding target of the plan (under section 
303) for the plan year attributable to the 
amendment, and 
‘‘(ii) in the case of subparagraph 
(A)(ii), the amount sufficient to result in a 
funding target attainment percentage of 80 
percent. 
‘‘(2) FUNDING-BASED LIMITATION ON CERTAIN 
FORMS OF DISTRIBUTION.— 
‘‘(A) IN GENERAL.—A defined benefit plan 
which is a single-employer plan shall provide 
that, in any case in which the plan’s funding 
target attainment percentage as of the valu-
ation date of the plan for a plan year is less 
than 80 percent, the plan may not after such 
date pay any prohibited payment (as defined in 
section 206(e)). 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to any plan for any plan year 
if the terms of such plan (as in effect for the
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period beginning on June 29, 2005, and ending 
with such plan year) provide for no benefit ac-
cruals with respect to any participant during 
such period. 
‘‘(3) LIMITATIONS ON BENEFIT ACCRUALS FOR 
PLANS WITH SEVERE FUNDING SHORTFALLS.—A de-
fined benefit plan which is a single-employer plan 
shall provide that, in any case in which the plan’s 
funding target attainment percentage as of the valu-
ation date of the plan for a plan year is less than 
60 percent, all future benefit accruals under the 
plan shall cease as of such date. 
‘‘(4) NEW
PLANS.—Paragraphs (1) and (3) 
shall not apply to a plan for the first 5 plan years 
of the plan. For purposes of this subsection, the ref-
erence in this subsection to a plan shall include a 
reference to any predecessor plan. 
‘‘(5) PRESUMED
UNDERFUNDING
FOR
PUR-
POSES OF BENEFIT LIMITATIONS BASED ON PRIOR 
YEAR’S FUNDING STATUS.— 
‘‘(A) 
PRESUMPTION
OF
CONTINUED 
UNDERFUNDING.—In any case in which a ben-
efit limitation under paragraph (1), (2), or (3) 
has been applied to a plan with respect to the 
plan year preceding the current plan year, the
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funding target attainment percentage of the 
plan as of the valuation date of the plan for the 
current plan year shall be presumed to be equal 
to the funding target attainment percentage of 
the plan as of the valuation date of the plan for 
the preceding plan year until the enrolled actu-
ary of the plan certifies the actual funding tar-
get attainment percentage of the plan as of the 
valuation date of the plan for the current plan 
year. 
‘‘(B) PRESUMPTION
OF
UNDERFUNDING 
AFTER 10TH MONTH.—In any case in which no 
such certification is made with respect to the 
plan before the first day of the 10th month of 
the current plan year, for purposes of para-
graphs (1), (2), and (3), the plan’s funding tar-
get attainment percentage shall be conclusively 
presumed to be less than 60 percent as of the 
first day of such 10th month, and such day 
shall be deemed, for purposes of such sub-
sections, to be the valuation date of the plan for 
the current plan year. 
‘‘(C) PRESUMPTION
OF
UNDERFUNDING 
AFTER
4TH
MONTH
FOR
NEARLY
UNDER-
FUNDED PLANS.—In any case in which—
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‘‘(i) a benefit limitation under para-
graph (1), (2), or (3) did not apply to a 
plan with respect to the plan year pre-
ceding the current plan year, but the fund-
ing target attainment percentage of the 
plan for such preceding plan year was not 
more than 10 percentage points greater 
than the percentage which would have 
caused such subsection to apply to the plan 
with respect to such preceding plan year, 
and 
‘‘(ii) as of the first day of the 4th 
month of the current plan year, the en-
rolled actuary of the plan has not certified 
the actual funding target attainment per-
centage of the plan as of the valuation date 
of the plan for the current plan year, 
until the enrolled actuary so certifies, such first 
day shall be deemed, for purposes of such sub-
section, to be the valuation date of the plan for 
the current plan year and the funding target at-
tainment percentage of the plan as of such first 
day shall, for purposes of such paragraph, be 
presumed to be equal to 10 percentage points 
less than the funding target attainment per-
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centage of the plan as of the valuation date of 
the plan for such preceding plan year. 
‘‘(6) RESTORATION BY PLAN AMENDMENT OF 
BENEFITS OR BENEFIT ACCRUAL.—In any case in 
which a prohibition under paragraph (2) of a pay-
ment described in paragraph (2)(A) or a cessation of 
benefit accruals under paragraph (3) is applied to a 
plan with respect to any plan year and such prohibi-
tion or cessation, as the case may be, ceases to apply 
to any subsequent plan year, the plan may provide 
for the resumption of such benefit payment or such 
benefit accrual only by means of the adoption of a 
plan amendment after the valuation date of the plan 
for such subsequent plan year. The preceding sen-
tence shall not apply to a prohibition or cessation re-
quired by reason of paragraph (5). 
‘‘(7) FUNDING TARGET ATTAINMENT PERCENT-
AGE.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘funding target attainment 
percentage’ means, with respect to any plan for 
any plan year, the ratio (expressed as a per-
centage) which— 
‘‘(i) the value of plan assets for the 
plan year (as determined under section
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303(g)) reduced by the pre-funding bal-
ance and the funding standard carryover 
balance (within the meaning of section 
303(f)), bears to 
‘‘(ii) the funding target of the plan for 
the plan year (as determined under section 
303(d)(1), but without regard to section 
303(i)(1)). 
‘‘(B) APPLICATION TO PLANS WHICH ARE 
FULLY FUNDED WITHOUT REGARD TO REDUC-
TIONS FOR FUNDING BALANCES.— 
‘‘(i) IN GENERAL.—In the case of a 
plan for any plan year, if the funding tar-
get attainment percentage is 100 percent 
or more (determined without regard to this 
subparagraph and without regard to the 
reduction under subparagraph (A)(i) for 
the pre-funding balance and the funding 
standard carryover balance), subparagraph 
(A) shall be applied without regard to such 
reduction. 
‘‘(ii) TRANSITION
RULE.—Clause (i) 
shall be applied to plan years beginning 
after 2006 and before 2011 by substituting 
for ‘100 percent’ the applicable percentage
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determined in accordance with the fol-
lowing table: 
‘‘In the case of a plan year beginning in calendar 
year: 
The appli-
cable per-
centage is: 
2007 ..............................................................................................
92 percent
2008 ..............................................................................................
94 percent
2009 ..............................................................................................
96 percent
2010 ..............................................................................................
98 percent. 
‘‘(iii) LIMITATION.—Clause (ii) shall 
not apply with respect to any plan year 
after 2007 unless the funding target at-
tainment percentage (determined without 
regard to this subparagraph and without 
regard to the reduction under subpara-
graph (A)(i) for the pre-funding balance 
and the funding standard carryover bal-
ance) of the plan for each preceding plan 
year after 2006 was not less than the ap-
plicable percentage with respect to such 
preceding plan year determined under 
clause (ii). 
‘‘(8) DEEMED REDUCTION OF FUNDING BAL-
ANCES.—In the case of a plan maintained pursuant 
to 1 or more collective bargaining agreements be-
tween employee representatives and 1 or more em-
ployers—
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‘‘(A) IN GENERAL.—In any case in which 
a benefit limitation under paragraph (1), (2), or 
(3) would (but for this paragraph and deter-
mined without regard to paragraph (1)(B)) 
apply to such plan for the plan year, the plan 
sponsor of such plan shall be treated for pur-
poses of this Act as having made an election 
under section 303(f)(5) to reduce the balance of 
the pre-funding balance and the funding stand-
ard carryover balance for the plan year (in a 
manner consistent with the requirements of sec-
tion 303(f)(5)(B)) by such amount as is nec-
essary for such benefit limitation to not apply 
to the plan for such plan year. 
‘‘(B) 
EXCEPTION
FOR
INSUFFICIENT 
FUNDING BALANCES.—Subparagraph (A) shall 
not apply with respect to a benefit limitation 
for any plan year if the application of subpara-
graph (A) would not result in the benefit limita-
tion not applying for such plan year.’’. 
(2) NOTICE REQUIREMENT.— 
(A) IN
GENERAL.—Section 101 of such 
Act (29 U.S.C. 1021) is amended— 
(i) by redesignating subsection (j) as 
subsection (k); and
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(ii) by inserting after subsection (i) 
the following new subsection: 
‘‘(j) NOTICE OF FUNDING-BASED LIMITATION ON 
CERTAIN FORMS OF DISTRIBUTION.—The plan adminis-
trator of a defined benefit plan which is a single-employer 
plan shall provide a written notice to plan participants and 
beneficiaries within 30 days after the plan has become 
subject to the restriction described in section 206(h)(2) 
or at such other time as may be determined by the Sec-
retary.’’. 
(B) ENFORCEMENT.—Section 502(c)(4) of 
such Act (29 U.S.C. 1132(c)(4)) is amended by 
striking ‘‘section 302(b)(7)(F)(vi)’’ and insert-
ing ‘‘sections 101(j) and 302(b)(7)(F)(vi)’’. 
(c) EFFECTIVE DATE.— 
(1) SHUTDOWN BENEFITS.—Except as provided 
in paragraph (3), the amendments made by sub-
section (a) shall apply with respect to plant shut-
downs, or other unpredictable contingent events, oc-
curring after 2006. 
(2) OTHER BENEFITS.—Except as provided in 
paragraph (3), the amendments made by subsection 
(b) shall apply with respect to plan years beginning 
after 2006.
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(3) COLLECTIVE BARGAINING EXCEPTION.—In 
the case of a plan maintained pursuant to 1 or more 
collective bargaining agreements between employee 
representatives and 1 or more employers ratified be-
fore the date of the enactment of this Act, the 
amendments made by this subsection shall not apply 
to plan years beginning before the earlier of— 
(A) the later of— 
(i) the date on which the last collec-
tive bargaining agreement relating to the 
plan terminates (determined without re-
gard to any extension thereof agreed to 
after the date of the enactment of this 
Act), or 
(ii) the first day of the first plan year 
to which the amendments made by this 
subsection would (but for this subpara-
graph) apply, or 
(B) January 1, 2009. 
For purposes of clause (i), any plan amendment 
made pursuant to a collective bargaining agreement 
relating to the plan which amends the plan solely to 
conform to any requirement added by this subsection 
shall not be treated as a termination of such collec-
tive bargaining agreement.
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(d) SPECIAL RULE FOR 2007.—For purposes of ap-
plying paragraph (5) of section 206(h) of such Act (as 
added by this section) to current plan years (within the 
meaning of such paragraph) beginning in 2007, the modi-
fied funded current liability percentage of the plan for the 
preceding year shall be substituted for the funding target 
attainment percentage of the plan for the preceding year. 
For purposes of the preceding sentence, the term ‘‘modi-
fied funded current liability percentage’’ means the funded 
current liability percentage (as defined in section 302(l)(8) 
of such Act), reduced as described in subparagraph (E) 
thereof in the case of a plan with a funded current liability 
percentage (as so defined and before such reduction) 
which is less than 100 percent. 
SEC. 104. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) MISCELLANEOUS AMENDMENTS TO TITLE I.— 
Subtitle B of title I of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1021 et seq.) is amend-
ed— 
(1) in section 101(d)(3), by striking ‘‘section 
302(e)’’ and inserting ‘‘section 303(j)’’; 
(2) in section 101(f)(2)(B), by striking clause 
(i) and inserting the following: 
‘‘(i) a statement as to whether—
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‘‘(I) in the case of a defined ben-
efit plan which is a single-employer 
plan, the plan’s funding target attain-
ment percentage (as defined in section 
303(d)(2)), or 
‘‘(II) in the case of a defined 
benefit plan which is a multiemployer 
plan, the plan’s funded percentage (as 
defined in section 305(d)(2)), 
is at least 100 percent (and, if not, the ac-
tual percentage);’’; 
(3) in section 103(d)(8)(B), by striking ‘‘the re-
quirements of section 302(c)(3)’’ and inserting ‘‘the 
applicable requirements of sections 303(h) and 
304(c)(3)’’; 
(4) in section 103(d), by striking paragraph 
(11) and inserting the following: 
‘‘(11) If the current value of the assets of the 
plan is less than 70 percent of— 
‘‘(A) in the case of a defined benefit plan 
which is a single-employer plan, the funding 
target (as defined in section 303(d)(1)) of the 
plan, or 
‘‘(B) in the case of a defined benefit plan 
which is a multiemployer plan, the current li-
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ability (as defined in section 304(c)(6)(D)) 
under the plan, 
the percentage which such value is of the amount 
described in subparagraph (A) or (B).’’; 
(5) in section 203(a)(3)(C), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’; 
(6) in section 204(g)(1), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’; 
(7) in section 204(i)(2)(B), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’; 
(8) in section 204(i)(3), by striking ‘‘funded 
current liability percentage (within the meaning of 
section 302(d)(8) of this Act)’’ and inserting ‘‘fund-
ing target attainment percentage (as defined in sec-
tion 303(d)(2))’’; 
(9) in section 204(i)(4), by striking ‘‘section 
302(c)(11)(A), 
without 
regard 
to 
section 
302(c)(11)(B)’’ and inserting ‘‘section 302(b)(1), 
without regard to section 302(b)(2)’’; 
(10) in section 206(e)(1), by striking ‘‘section 
302(d)’’ and inserting ‘‘section 303(j)(4)’’, and by 
striking ‘‘section 302(e)(5)’’ and inserting ‘‘section 
303(j)(4)(E)(i)’’; 
(11) in section 206(e)(3), by striking ‘‘section 
302(e) by reason of paragraph (5)(A) thereof’’ and
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inserting ‘‘section 303(j)(3) by reason of section 
303(j)(4)(A)’’; and 
(12) in sections 101(e)(3), 403(c)(1), and 
408(b)(13), by striking ‘‘American Jobs Creation 
Act of 2004’’ and inserting ‘‘Pension Protection Act 
of 2005’’. 
(b) MISCELLANEOUS AMENDMENTS TO TITLE IV.— 
Title IV of such Act is amended— 
(1) 
in 
section 
4001(a)(13) 
(29 
U.S.C. 
1301(a)(13)), by striking ‘‘302(c)(11)(A)’’ and in-
serting ‘‘302(b)(1)’’, by striking ‘‘412(c)(11)(A)’’ 
and 
inserting 
‘‘412(b)(1)’’, 
by 
striking 
‘‘302(c)(11)(B)’’ and inserting ‘‘302(b)(2)’’, and by 
striking ‘‘412(c)(11)(B)’’ and inserting ‘‘412(b)(2)’’; 
(2) 
in 
section 
4003(e)(1) 
(29 
U.S.C. 
1303(e)(1)), by striking ‘‘302(f)(1)(A) and (B)’’ and 
inserting ‘‘303(k)(1)(A) and (B)’’, and by striking 
‘‘412(n)(1)(A) 
and 
(B)’’ 
and 
inserting 
‘‘430(k)(1)(A) and (B)’’; 
(3) 
in 
section 
4010(b)(2) 
(29 
U.S.C. 
1310(b)(2)), by striking ‘‘302(f)(1)(A) and (B)’’ and 
inserting ‘‘303(k)(1)(A) and (B)’’, and by striking 
‘‘412(n)(1)(A) 
and 
(B)’’ 
and 
inserting 
‘‘430(k)(1)(A) and (B)’’;
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(4) in section 4011(b) (29 U.S.C. 1311(b)), by 
striking ‘‘to which’’ and all that follows and insert-
ing ‘‘for any plan year for which the plan’s funding 
target attainment percentage (as defined in section 
303(d)(2)) is at least 90 percent.’’; 
(5) 
in 
section 
4062(c)(1) 
(29 
U.S.C. 
1362(c)(1)), by striking paragraphs (1), (2), and (3) 
and inserting the following: 
‘‘(1)(A) in the case of a single-employer plan, 
the sum of the shortfall amortization charge (within 
the meaning of section 303(c)(1) of this Act and 
430(c)(1) of the Internal Revenue Code of 1986) 
with respect to the plan (if any) for the plan year 
in which the termination date occurs, plus the aggre-
gate total of shortfall amortization installments (if 
any) determined for succeeding plan years under 
section 303(c)(2) of this Act and section 430(c)(2) 
of such Code (which, for purposes of this subpara-
graph, shall include any increase in such sum which 
would result if all applications for waivers of the 
minimum funding standard under section 302(c) of 
this Act and section 412(c) of such Code which are 
pending with respect to such plan were denied and 
if no additional contributions (other than those al-
ready made by the termination date) were made for
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the plan year in which the termination date occurs 
or for any previous plan year), or 
‘‘(B) in the case of a multiemployer plan, the 
outstanding balance of the accumulated funding de-
ficiencies (within the meaning of section 304(a)(2) 
of this Act and section 431(a) of the Internal Rev-
enue Code of 1986) of the plan (if any) (which, for 
purposes of this subparagraph, shall include the 
amount of any increase in such accumulated funding 
deficiencies of the plan which would result if all 
pending applications for waivers of the minimum 
funding standard under section 302(c) of this Act or 
section 412(c) of such Code and for extensions of 
the amortization period under section 304(d) of this 
Act or section 431(d) of such Code with respect to 
such plan were denied and if no additional contribu-
tions (other than those already made by the termi-
nation date) were made for the plan year in which 
the termination date occurs or for any previous plan 
year), 
‘‘(2)(A) in the case of a single-employer plan, 
the sum of the waiver amortization charge (within 
the meaning of section 303(e)(1) of this Act and 
430(j)(2) of the Internal Revenue Code of 1986) 
with respect to the plan (if any) for the plan year
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in which the termination date occurs, plus the aggre-
gate total of waiver amortization installments (if 
any) determined for succeeding plan years under 
section 303(e)(2) of this Act and section 430(j)(3) 
of such Code, or 
‘‘(B) in the case of a multiemployer plan, the 
outstanding balance of the amount of waived fund-
ing deficiencies of the plan waived before such date 
under section 302(c) of this Act or section 412(c) of 
such Code (if any), and 
‘‘(3) in the case of a multiemployer plan, the 
outstanding balance of the amount of decreases in 
the minimum funding standard allowed before such 
date under section 304(d) of this Act or section 
431(d) of such Code (if any);’’; 
(6) in section 4071 (29 U.S.C. 1371), by strik-
ing ‘‘302(f)(4)’’ and inserting ‘‘303(k)(4)’’; 
(7) in section 4243(a)(1)(B) (29 U.S.C. 
1423(a)(1)(B)), by striking ‘‘302(a)’’ and inserting 
‘‘304(a)’’, and, in clause (i), by striking ‘‘302(a)’’ 
and inserting ‘‘304(a)’’; 
(8) 
in 
section 
4243(f)(1) 
(29 
U.S.C. 
1423(f)(1)), by striking ‘‘303(a)’’ and inserting 
‘‘302(c)’’;
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(9) 
in 
section 
4243(f)(2) 
(29 
U.S.C. 
1423(f)(2)), by striking ‘‘303(c)’’ and inserting 
‘‘302(c)(3)’’; and 
(10) in section 4243(g) (29 U.S.C. 1423(g)), by 
striking ‘‘302(c)(3)’’ and inserting ‘‘304(c)(3)’’. 
(c) AMENDMENTS TO REORGANIZATION PLAN NO. 4 
OF 1978.—Section 106(b)(ii) of Reorganization Plan No. 
4 of 1978 (ratified and affirmed as law by Public Law 
98–532 (98 Stat. 2705)) is amended by striking 
‘‘302(c)(8)’’ and inserting ‘‘302(d)(2)’’, by striking 
‘‘304(a) and (b)(2)(A)’’ and inserting ‘‘304(d)(1), (d)(2), 
and (e)(2)(A)’’, and by striking ‘‘412(c)(8), (e), and 
(f)(2)(A)’’ and inserting ‘‘412(d)(2) and 431(d)(1), (d)(2), 
and (e)(2)(A)’’. 
(d) REPEAL
OF EXPIRED AUTHORITY
FOR TEM-
PORARY VARIANCES.— 
(1) IN GENERAL.—Section 207 of such Act (29 
U.S.C. 1057) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by 
striking the item relating to section 207. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after 2006.
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Subtitle B—Amendments to 
Internal Revenue Code of 1986 
SEC. 111. MINIMUM FUNDING STANDARDS. 
(a) NEW MINIMUM FUNDING STANDARDS.—Section 
412 of the Internal Revenue Code of 1986 (relating to 
minimum funding standards) is amended to read as fol-
lows: 
‘‘SEC. 412. MINIMUM FUNDING STANDARDS. 
‘‘(a) REQUIREMENT TO MEET MINIMUM FUNDING 
STANDARD.— 
‘‘(1) IN GENERAL.—A plan to which this sec-
tion applies shall satisfy the minimum funding 
standard applicable to the plan for any plan year. 
‘‘(2) MINIMUM FUNDING STANDARD.—For pur-
poses of paragraph (1), a plan shall be treated as 
satisfying the minimum funding standard for a plan 
year if— 
‘‘(A) in the case of a defined benefit plan 
which is not a multiemployer plan, the employer 
makes contributions to or under the plan for 
the plan year which, in the aggregate, are not 
less than the minimum required contribution 
determined under section 430 for the plan for 
the plan year,
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‘‘(B) in the case of a money purchase plan 
which is not a multiemployer plan, the employer 
makes contributions to or under the plan for 
the plan year which are required under the 
terms of the plan, and 
‘‘(C) in the case of a multiemployer plan, 
the employers make contributions to or under 
the plan for any plan year which, in the aggre-
gate, are sufficient to ensure that the plan does 
not have an accumulated funding deficiency 
under section 431 as of the end of the plan 
year. 
‘‘(b) LIABILITY FOR CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of any contribution required 
by this section (including any required installments 
under paragraphs (3) and (4) of section 430(j)) 
shall be paid by the employer responsible for making 
contributions to or under the plan. 
‘‘(2) JOINT
AND
SEVERAL
LIABILITY
WHERE 
EMPLOYER MEMBER OF CONTROLLED GROUP.—In 
the case of a defined benefit plan which is not a 
multiemployer plan, if the employer referred to in 
paragraph (1) is a member of a controlled group,
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each member of such group shall be jointly and sev-
erally liable for payment of such contributions. 
‘‘(c) VARIANCE FROM MINIMUM FUNDING STAND-
ARDS.— 
‘‘(1) WAIVER
IN
CASE
OF
BUSINESS
HARD-
SHIP.— 
‘‘(A) IN GENERAL.—If— 
‘‘(i) an employer is (or in the case of 
a multiemployer plan, 10 percent or more 
of the number of employers contributing to 
or under the plan is) unable to satisfy the 
minimum funding standard for a plan year 
without temporary substantial business 
hardship (substantial business hardship in 
the case of a multiemployer plan), and 
‘‘(ii) application of the standard would 
be adverse to the interests of plan partici-
pants in the aggregate, 
the Secretary may, subject to subparagraph 
(C), waive the requirements of subsection (a) 
for such year with respect to all or any portion 
of the minimum funding standard. The Sec-
retary shall not waive the minimum funding 
standard with respect to a plan for more than
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3 of any 15 (5 of any 15 in the case of a multi-
employer plan) consecutive plan years. 
‘‘(B) EFFECTS OF WAIVER.—If a waiver is 
granted under subparagraph (A) for any plan 
year— 
‘‘(i) in the case of a defined benefit 
plan which is not a multiemployer plan, 
the minimum required contribution under 
section 430 for the plan year shall be re-
duced by the amount of the waived funding 
deficiency and such amount shall be amor-
tized as required under section 430(e), and 
‘‘(ii) in the case of a multiemployer 
plan, the funding standard account shall 
be credited under section 431(b)(3)(C) 
with the amount of the waived funding de-
ficiency and such amount shall be amor-
tized 
as 
required 
under 
section 
431(b)(2)(C). 
‘‘(C) WAIVER
OF
AMORTIZED
PORTION 
NOT ALLOWED.—The Secretary may not waive 
under subparagraph (A) any portion of the 
minimum funding standard under subsection 
(a) for a plan year which is attributable to any
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waived funding deficiency for any preceding 
plan year. 
‘‘(2) DETERMINATION
OF
BUSINESS
HARD-
SHIP.—For purposes of this subsection, the factors 
taken into account in determining temporary sub-
stantial business hardship (substantial business 
hardship in the case of a multiemployer plan) shall 
include (but shall not be limited to) whether or 
not— 
‘‘(A) the employer is operating at an eco-
nomic loss, 
‘‘(B) there is substantial unemployment or 
underemployment in the trade or business and 
in the industry concerned, 
‘‘(C) the sales and profits of the industry 
concerned are depressed or declining, and 
‘‘(D) it is reasonable to expect that the 
plan will be continued only if the waiver is 
granted. 
‘‘(3) WAIVED FUNDING DEFICIENCY.—For pur-
poses of this section and part III of this subchapter, 
the term ‘waived funding deficiency’ means the por-
tion of the minimum funding standard under sub-
section (a) (determined without regard to the waiv-
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er) for a plan year waived by the Secretary and not 
satisfied by employer contributions. 
‘‘(4) SECURITY FOR WAIVERS FOR SINGLE-EM-
PLOYER PLANS, CONSULTATIONS.— 
‘‘(A) SECURITY MAY BE REQUIRED.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in subparagraph (C), the Secretary 
may require an employer maintaining a de-
fined benefit plan which is a single-em-
ployer plan (within the meaning of section 
4001(a)(15) of the Employee Retirement 
Income Security Act of 1974) to provide 
security to such plan as a condition for 
granting or modifying a waiver under 
paragraph (1). 
‘‘(ii) SPECIAL
RULES.—Any security 
provided under clause (i) may be perfected 
and enforced only by the Pension Benefit 
Guaranty Corporation, or at the direction 
of the Corporation, by a contributing spon-
sor 
(within 
the 
meaning 
of 
section 
4001(a)(13) of the Employee Retirement 
Income Security Act of 1974), or a mem-
ber of such sponsor’s controlled group
HR 2830 PCS 
(within the meaning of section 4001(a)(14) 
of such Act). 
‘‘(B) CONSULTATION WITH THE PENSION 
BENEFIT GUARANTY CORPORATION.—Except as 
provided in subparagraph (C), the Secretary 
shall, before granting or modifying a waiver 
under this subsection with respect to a plan de-
scribed in subparagraph (A)(i)— 
‘‘(i) provide the Pension Benefit 
Guaranty Corporation with— 
‘‘(I) notice of the completed ap-
plication for any waiver or modifica-
tion, and 
‘‘(II) an opportunity to comment 
on such application within 30 days 
after receipt of such notice, and 
‘‘(ii) consider— 
‘‘(I) any comments of the Cor-
poration under clause (i)(II), and 
‘‘(II) any views of any employee 
organization (within the meaning of 
section 3(4) of the Employee Retire-
ment Income Security Act of 1974) 
representing participants in the plan 
which are submitted in writing to the
HR 2830 PCS 
Secretary in connection with such ap-
plication. 
Information provided to the Corporation under 
this subparagraph shall be considered tax re-
turn information and subject to the safe-
guarding and reporting requirements of section 
6103(p). 
‘‘(C) EXCEPTION
FOR
CERTAIN
WAIV-
ERS.— 
‘‘(i) IN
GENERAL.—The preceding 
provisions of this paragraph shall not 
apply to any plan with respect to which the 
sum of— 
‘‘(I) the aggregate unpaid min-
imum required contribution (within 
the meaning of section 4971(c)(4)) for 
the plan year and all preceding plan 
years, and 
‘‘(II) the present value of all 
waiver amortization installments de-
termined for the plan year and suc-
ceeding plan years under section 
430(e)(2), 
is less than $1,000,000.