307 
(c) 
EFFECTIVE DATE.—The amendments 
made by this section shall apply to transfers 
or reservations of assets after December 31, 
2005. 
(d) SPECIAL RULE FOR 2006.—For purposes 
of determining if a plan is in at-risk status 
(within the meaning of section 409A of such 
Code, as added by this section) for any plan 
year beginning in 2006, such section shall be 
applied by substituting the plan’s modified 
funded current liability percentage for the 
plan’s funding target attainment percentage. 
For purposes of the preceding sentence, the 
term ‘‘modified funded current liability per-
centage’’ means the funded current liability 
percentage (as defined in section 412(l)(8) of 
such Code), reduced as described in subpara-
graph (E) thereof.
308 
TITLE II—FUNDING RULES FOR 
MULTIEMPLOYER 
DEFINED 
BENEFIT PLANS 
Subtitle A—Amendments to Em-
ployee Retirement Income Secu-
rity Act of 1974 
SEC. 201. FUNDING RULES FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
[See section 201 of the bill as reported by 
the Committee on Education and the Work-
force.] 
SEC. 202. ADDITIONAL FUNDING RULES FOR MULTIEM-
PLOYER PLANS IN ENDANGERED OR CRIT-
ICAL STATUS. 
[See section 202 of the bill as reported by 
the Committee on Education and the Work-
force.] 
SEC. 203. MEASURES TO FORESTALL INSOLVENCY OF MUL-
TIEMPLOYER PLANS. 
[See section 203 of the bill as reported by 
the Committee on Education and the Work-
force.]
309 
SEC. 204. WITHDRAWAL LIABILITY REFORMS. 
[See section 204 of the bill as reported by 
the Committee on Education and the Work-
force.] 
SEC. 205. REMOVAL OF RESTRICTIONS WITH RESPECT TO 
PROCEDURES APPLICABLE TO DISPUTES IN-
VOLVING WITHDRAWAL LIABILITY. 
[See section 205 of the bill as reported by 
the Committee on Education and the Work-
force.] 
Subtitle B—Amendments to 
Internal Revenue Code of 1986 
SEC. 211. FUNDING RULES FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) IN GENERAL.—Subpart A of part III of 
subchapter D of chapter 1 of the Internal Rev-
enue Code of 1986 (added by section 112 of 
this Act) is amended by adding at the end the 
following new section: 
‘‘SEC. 431. MINIMUM FUNDING STANDARDS FOR MULTIEM-
PLOYER PLANS. 
‘‘(a) IN GENERAL.—For purposes of section 
412, the accumulated funding deficiency of a 
multiemployer plan for any plan year is— 
‘‘(1) except as provided in paragraph 
(2), the amount, determined as of the end
310 
of the plan year, equal to the excess (if 
any) of the total charges to the funding 
standard account of the plan for all plan 
years (beginning with the first plan year 
for which section 412 applies to the plan) 
over the total credits to such account for 
such years, and 
‘‘(2) if the multiemployer plan is in re-
organization for any plan year, the accu-
mulated funding deficiency of the plan 
determined under section 418B. 
‘‘(b) FUNDING STANDARD ACCOUNT.— 
‘‘(1) ACCOUNT REQUIRED.—Each multi-
employer plan to which section 412 ap-
plies shall establish and maintain a fund-
ing standard account. Such account shall 
be credited and charged solely as pro-
vided in this section. 
‘‘(2) CHARGES TO ACCOUNT.—For a plan 
year, the funding standard account shall 
be charged with the sum of— 
‘‘(A) the normal cost of the plan 
for the plan year,
311 
‘‘(B) the amounts necessary to am-
ortize in equal annual installments 
(until fully amortized)— 
‘‘(i) in the case of a plan in ex-
istence on January 1, 1974, the 
unfunded past service liability 
under the plan on the first day of 
the first plan year to which sec-
tion 412 applies, over a period of 
40 plan years, 
‘‘(ii) in the case of a plan 
which comes into existence after 
January 1, 1974, the unfunded 
past service liability under the 
plan on the first day of the first 
plan year to which section 412 ap-
plies, over a period of 15 plan 
years, 
‘‘(iii) separately, with respect 
to each plan year, the net in-
crease (if any) in unfunded past 
service liability under the plan 
arising from plan amendments 
adopted in such year, over a pe-
riod of 15 plan years,
312 
‘‘(iv) separately, with respect 
to each plan year, the net experi-
ence loss (if any) under the plan, 
over a period of 15 plan years, 
and 
‘‘(v) separately, with respect 
to each plan year, the net loss (if 
any) resulting from changes in ac-
tuarial assumptions used under 
the plan, over a period of 15 plan 
years, 
‘‘(C) the amount necessary to am-
ortize each waived funding deficiency 
(within 
the 
meaning 
of 
section 
412(c)(3)) for each prior plan year in 
equal annual installments (until fully 
amortized) over a period of 15 plan 
years, 
‘‘(D) the amount necessary to am-
ortize in equal annual installments 
(until fully amortized) over a period 
of 5 plan years any amount credited 
to 
the 
funding 
standard 
account 
under section 412(b)(3)(D) (as in ef-
fect on the day before the date of the
313 
enactment of the Pension Protection 
Act of 2005), and 
‘‘(E) the amount necessary to am-
ortize in equal annual installments 
(until fully amortized) over a period 
of 20 years the contributions which 
would be required to be made under 
the plan but for the provisions of sec-
tion 412(c)(7)(A)(i)(I) (as in effect on 
the day before the date of the enact-
ment of the Pension Protection Act of 
2005). 
‘‘(3) CREDITS TO ACCOUNT.—For a plan 
year, the funding standard account shall 
be credited with the sum of— 
‘‘(A) the amount considered con-
tributed by the employer to or under 
the plan for the plan year, 
‘‘(B) the amount necessary to am-
ortize in equal annual installments 
(until fully amortized)— 
‘‘(i) separately, with respect to 
each plan year, the net decrease 
(if any) in unfunded past service 
liability under the plan arising
314 
from plan amendments adopted 
in such year, over a period of 15 
plan years, 
‘‘(ii) separately, with respect 
to each plan year, the net experi-
ence gain (if any) under the plan, 
over a period of 15 plan years, 
and 
‘‘(iii) separately, with respect 
to each plan year, the net gain (if 
any) resulting from changes in ac-
tuarial assumptions used under 
the plan, over a period of 15 plan 
years, 
‘‘(C) the amount of the waived 
funding deficiency (within the mean-
ing of section 412(c)(3)) for the plan 
year, and 
‘‘(D) in the case of a plan year for 
which the accumulated funding defi-
ciency is determined under the fund-
ing standard account if such plan 
year follows a plan year for which 
such 
deficiency 
was 
determined 
under the alternative minimum fund-
315 
ing standard under section 412(g) (as 
in effect on the day before the date of 
the enactment of the Pension Protec-
tion Act of 2005), the excess (if any) of 
any debit balance in the funding 
standard account (determined with-
out regard to this subparagraph) over 
any debit balance in the alternative 
minimum funding standard account. 
‘‘(4) SPECIAL RULE FOR AMOUNTS FIRST 
AMORTIZED TO PLAN YEARS BEFORE 2007.—In 
the case of any amount amortized under 
section 412(b) (as in effect on the day be-
fore the date of the enactment of the Pen-
sion Protection Act of 2005) over any pe-
riod beginning with a plan year begin-
ning before 2007, in lieu of the amortiza-
tion described in paragraphs (2)(B) and 
(3)(B), such amount shall continue to be 
amortized under such section as so in ef-
fect. 
‘‘(5) 
COMBINING
AND
OFFSETTING 
AMOUNTS TO BE AMORTIZED.—Under regula-
tions 
prescribed 
by 
the 
Secretary, 
amounts required to be amortized under
316 
paragraph (2) or paragraph (3), as the 
case may be— 
‘‘(A) may be combined into one 
amount under such paragraph to be 
amortized over a period determined 
on the basis of the remaining amorti-
zation period for all items entering 
into such combined amount, and 
‘‘(B) 
may 
be 
offset 
against 
amounts required to be amortized 
under the other such paragraph, with 
the resulting amount to be amortized 
over a period determined on the basis 
of the remaining amortization peri-
ods for all items entering into which-
ever of the two amounts being offset 
is the greater. 
‘‘(6) INTEREST.—Except as provided in 
subsection (c)(9), the funding standard 
account (and items therein) shall be 
charged 
or 
credited 
(as 
determined 
under regulations prescribed by the Sec-
retary) with interest at the appropriate 
rate consistent with the rate or rates of