106 
not less than 100 percent of the plan’s cur-
rent liability (as defined in paragraph 
(6)(D) without regard to clause (iv) there-
of). 
‘‘(iii) 
ADJUSTMENTS.—Information 
under clause (ii) shall, in accordance with 
regulations, be actuarially adjusted to re-
flect significant differences in participants. 
‘‘(iv) LIMITATION.—A change in fund-
ing method to use a prior year valuation, 
as provided in clause (ii), may not be made 
unless as of the valuation date within the 
prior plan year, the value of the assets of 
the plan are not less than 125 percent of the 
plan’s current liability (as defined in para-
graph (6)(D) without regard to clause (iv) 
thereof). 
‘‘(8) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—For purposes of this section, any 
contributions for a plan year made by an employer 
after the last day of such plan year, but not later 
than two and one-half months after such day, shall be 
deemed to have been made on such last day. For pur-
poses of this subparagraph, such two and one-half 
month period may be extended for not more than six
107 
months under regulations prescribed by the Secretary 
of the Treasury. 
‘‘(9) INTEREST RULE FOR WAIVERS AND EXTEN-
SIONS.—The interest rate applicable for any plan 
year for purposes of computing the amortization 
charge described in subsection (b)(2)(C) and in con-
nection with an extension granted under subsection 
(d) shall be the greater of— 
‘‘(A) 150 percent of the Federal mid-term 
rate (as in effect under section 1274 of the Inter-
nal Revenue Code of 1986 for the 1st month of 
such plan year), or 
‘‘(B) the rate of interest used under the plan 
for determining costs. 
‘‘(d) EXTENSION
OF AMORTIZATION PERIODS
FOR 
MULTIEMPLOYER PLANS.—In the case of a multiemployer 
plan— 
‘‘(1) EXTENSION.—The period of years required 
to amortize any unfunded liability (described in any 
clause of subsection (b)(2)(B)) of any multiemployer 
plan may be extended (in addition to any extension 
under paragraph (2)) by the Secretary of the Treas-
ury for a period of time (not in excess of 5 years) if 
such Secretary determines that such extension would 
carry out the purposes of this Act and would provide
108 
adequate protection for participants under the plan 
and their beneficiaries and if he determines that the 
failure to permit such extension would— 
‘‘(A) result in— 
‘‘(i) a substantial risk to the voluntary 
continuation of the plan, or 
‘‘(ii) a substantial curtailment of pen-
sion benefit levels or employee compensa-
tion, and 
‘‘(B) be adverse to the interests of plan par-
ticipants in the aggregate. 
‘‘(2) ADDITIONAL
EXTENSION.—The period of 
years required to amortize any unfunded liability 
(described in any clause of subsection (b)(2)(B)) of 
any multiemployer plan may be extended (in addi-
tion to any extension under paragraph (1)) by the 
Secretary of the Treasury for a period of time (not 
in excess of 5 years) if such Secretary determines 
that— 
‘‘(A) absent the extension, the plan would 
have an accumulated funding deficiency in any 
of the next 10 plan years, 
‘‘(B) the plan sponsor has adopted a plan 
to improve the plan’s funding status, and
109 
‘‘(C) taking into account the extension, the 
plan is projected to have suficient assets to time-
ly pay its expected benefit liabilities and other 
anticipated expenditures 
‘‘(3) ADVANCE NOTICE.— 
‘‘(A) IN
GENERAL.—The Secretary of the 
Treasury shall, before granting an extension 
under this section, require each applicant to pro-
vide evidence satisfactory to such Secretary that 
the applicant has provided notice of the filing of 
the application for such extension to each af-
fected party (as defined in section 4001(a)(21)) 
with respect to the affected plan. Such notice 
shall include a description of the extent to which 
the plan is funded for benefits which are guaran-
teed under title IV and for benefit liabilities. 
‘‘(B) CONSIDERATION OF RELEVANT INFOR-
MATION.—The Secretary of the Treasury shall 
consider any relevant information provided by a 
person to whom notice was given under para-
graph (1).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 301 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1081) is 
amended by striking subsection (d).
110 
(2) The table of contents in section 1 of such Act 
(as amended by section 102 of this Act) is amended 
further by inserting after the item relating to section 
303 the following new item: 
‘‘Sec. 304. Minimum funding standards for multiemployer plans.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after 2005. 
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 amend-
ed further by inserting after section 304 the following new 
section: 
‘‘ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER 
PLANS IN ENDANGERED STATUS OR CRITICAL STATUS 
‘‘SEC. 305. (a) ANNUAL CERTIFICATION BY PLAN AC-
TUARY.— 
‘‘(1) IN GENERAL.—During the 90-day period 
beginning on first day of each plan year of a multi-
employer plan, the plan actuary shall certify to the 
Secretary of the Treasury whether or not the plan is 
in endangered status for such plan year and whether 
or not the plan is in critical status for such plan 
year.
111 
‘‘(2) ACTUARIAL PROJECTIONS OF ASSETS AND 
LIABILITIES.— 
‘‘(A) IN GENERAL.—In making the deter-
minations under paragraph (1), the plan actu-
ary shall make projections under subsections 
(b)(2) and (c)(2) for the current and succeeding 
plan years, using reasonable actuarial assump-
tions and methods, of the current value of the as-
sets of the plan and the present value of all li-
abilities to participants and beneficiaries under 
the plan for the current plan year as of the be-
ginning of such year, as based on the actuarial 
statement prepared for the preceding plan year 
under section 103(d). 
‘‘(B) DETERMINATIONS
OF
FUTURE
CON-
TRIBUTIONS.—Any such actuarial projection of 
plan assets shall assume— 
‘‘(i) reasonably anticipated employer 
and employee contributions for the current 
and succeeding plan years, assuming that 
the terms of the one or more collective bar-
gaining agreements pursuant to which the 
plan is maintained for the current plan 
year continue in effect for succeeding plan 
years, or