133 
this subsection by substituting the term ‘rehabilitation 
plan’ for ‘funding improvement plan’. 
‘‘(7) SPECIAL RULES.— 
‘‘(A) AUTOMATIC EMPLOYER SURCHARGE.— 
‘‘(i) 5 PERCENT AND 10 PERCENT SUR-
CHARGE.—For the first plan year in which 
the plan is in critical status, each employer 
otherwise obligated to make a contribution 
for that plan year shall be obligated to pay 
to the plan a surcharge equal to 5 percent 
of the contribution otherwise required under 
the respective collective bargaining agree-
ment (or other agreement pursuant to which 
the employer contributes). For each consecu-
tive plan year thereafter in which the plan 
is in critical status, the surcharge shall be 
10 percent of the contribution otherwise re-
quired under the respective collective bar-
gaining agreement (or other agreement pur-
suant to which the employer contributes). 
‘‘(ii) ENFORCEMENT OF SURCHARGE.— 
The surcharges under clause (i) shall be due 
and payable on the same schedule as the 
contributions on which they are based. Any 
failure to make a surcharge payment shall
134 
be treated as a delinquent contribution 
under section 515 and shall be enforceable 
as such. 
‘‘(iii) 
SURCHARGE
TO
TERMINATE 
UPON CBA RENEGOTIATION.—The surcharge 
under this paragraph shall cease to be effec-
tive with respect to employees covered by a 
collective bargaining agreement, beginning 
on the date on which that agreement is re-
negotiated to include— 
‘‘(I) a schedule of benefits and 
contributions published by the trustees 
pursuant to the plan’s rehabilitation 
plan, or 
‘‘(II) otherwise collectively bar-
gained benefit changes. 
‘‘(iv) SURCHARGE
NOT
TO
APPLY 
UNTIL
EMPLOYER
RECEIVES
30-DAY
NO-
TICE.—The surcharge under this subpara-
graph shall not apply to an employer until 
30 days after the employer has been notified 
by the trustees that the plan is in critical 
status and that the surcharge is in effect. 
‘‘(v) SURCHARGE
NOT
TO
GENERATE 
INCREASED BENEFIT ACCRUALS.—Notwith-
135 
standing any provision of a plan to the 
contrary, the amount of any surcharge shall 
not be the basis for any benefit accruals 
under the plan. 
‘‘(B) BENEFIT ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—The trustees shall 
make appropriate reductions, if any, to ad-
justable benefits based upon the outcome of 
collective bargaining over the schedules pro-
vided under paragraph (5). 
‘‘(ii) RETIREE
PROTECTION.—Except 
as provided in subparagraph (C), the trust-
ees of a plan in critical status may not re-
duce adjustable benefits of any participant 
or beneficiary who was in pay status at 
least one year before the first day of the first 
plan year in which the plan enters into 
critical status. 
‘‘(iii) 
TRUSTEE
FLEXIBILITY.—The 
trustees shall include in the schedules pro-
vided to the bargaining parties an allow-
ance for funding the benefits of participants 
with respect to whom contributions are not 
currently required to be made, and shall re-
duce their benefits to the extent permitted
136 
under this title and considered appropriate 
based on the plan’s then current overall 
funding status and its future prospects in 
light of the results of the parties’ negotia-
tions. 
‘‘(C) ADJUSTABLE BENEFIT DEFINED.—For 
purposes of this paragraph, the term ‘adjustable 
benefit’ means— 
‘‘(i) benefits, rights, and features, such 
as post-retirement death benefits, 60-month 
guarantees, disability benefits not yet in 
pay status, and similar benefits, 
‘‘(ii) retirement-type subsidies, early 
retirement benefits, and benefit payment op-
tions (other than the 50 percent qualified 
joint-and-survivor benefit and single life an-
nuity), and 
‘‘(iii) benefit increases that would not 
be eligible for a guarantee under section 
4022A on the first day of the plan year in 
which the plan enters into critical status be-
cause they were adopted, or if later, took ef-
fect less than 60 months before reorganiza-
tion.
137 
‘‘(D) NORMAL RETIREMENT BENEFITS PRO-
TECTED.—Nothing in this paragraph shall be 
construed to permit a plan to reduce the level of 
a participant’s accrued benefit payable at nor-
mal retirement age which is not an adjustable 
benefit. 
‘‘(E) 
ADJUSTMENTS
DISREGARDED
IN 
WITHDRAWAL LIABILITY DETERMINATION.— 
‘‘(i) BENEFIT REDUCTIONS.—Any ben-
efit reductions under this paragraph shall 
be disregarded in determining a plan’s un-
funded vested benefits for purposes of deter-
mining an employer’s withdrawal liability 
under section 4201. 
‘‘(ii) SURCHARGES.—Any surcharges 
under this paragraph shall be disregarded 
in determining an employer’s withdrawal 
liability under section 4211, except for pur-
poses of determining the unfunded vested 
benefits attributable to an employer or 
under a modified attributable method 
adopted with the approval of the Pension 
Benefit Guaranty Corporation under sub-
section (c)(5) of that section.
138 
‘‘(8) RESTRICTIONS UPON APPROVAL OF REHA-
BILITATION PLAN.—Upon adoption of a rehabilitation 
plan with respect to a multiemployer plan, the plan 
may not be amended— 
‘‘(A) so as to be inconsistent with the reha-
bilitation plan, or 
‘‘(B) so as to increase future benefit accru-
als, unless the plan actuary certifies in advance 
that, after taking into account the proposed in-
crease, the plan is reasonably expected to cease to 
be in critical status. 
‘‘(9) IMPLEMENTATION OF DEFAULT SCHEDULE 
UPON FAILURE TO ADOPT REHABILITATION PLAN.—If 
the plan is not amended by the end of the 240-day 
period after entry into critical status to include a re-
habilitation plan, the plan sponsor shall amend the 
plan to implement the schedule required by para-
graph (5)(A)(ii). 
‘‘(10) DEEMED WITHDRAWAL.—Upon the failure 
of any employer who has an obligation to contribute 
under the plan to make contributions in compliance 
with the schedule adopted under paragraph (4) as 
part of the rehabilitation plan, the failure of the em-
ployer may, at the discretion of the plan sponsor, be 
treated as a withdrawal by the employer from the
139 
plan under section 4203 or a partial withdrawal by 
the employer under section 4205. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) BARGAINING PARTY.—The term ‘bargaining 
party’ means, in connection with a multiemployer 
plan— 
‘‘(A) an employer who has an obligation to 
contribute under the plan, and 
‘‘(B) an employee organization which, for 
purposes of collective bargaining, represents plan 
participants employed by such an employer. 
‘‘(2) FUNDED PERCENTAGE.—The term ‘funded 
percentage’ means the percentage expressed as a ratio 
of which— 
‘‘(A) the numerator of which is the value of 
the plan’s assets, as determined under section 
304(c)(2), and 
‘‘(B) the denominator of which is the ac-
crued liability of the plan. 
‘‘(3) ACCUMULATED FUNDING DEFICIENCY.—The 
term ‘accumulated funding deficiency’ has the mean-
ing provided such term in section 304(a). 
‘‘(4) ACTIVE
PARTICIPANT.—The term ‘active 
participant’ means, in connection with a multiem-
140 
ployer plan, a participant who is in covered service 
under the plan. 
‘‘(5) INACTIVE PARTICIPANT.—The term ‘inactive 
participant’ means, in connection with a multiem-
ployer plan, a participant who— 
‘‘(A) is not in covered service under the 
plan, and 
‘‘(B) is in pay status under the plan or has 
a nonforfeitable right to benefits under the plan. 
‘‘(6) PAY STATUS.—A person is in ‘pay status’ 
under a multiemployer plan if— 
‘‘(A) at any time during the current plan 
year, such person is a participant or beneficiary 
under the plan and is paid an early, late, nor-
mal, or disability retirement benefit under the 
plan (or a death benefit under the plan related 
to a retirement benefit), or 
‘‘(B) to the extent provided in regulations of 
the Secretary of the Treasury, such person is en-
titled to such a benefit under the plan. 
‘‘(7) OBLIGATION
TO
CONTRIBUTE.—The term 
‘obligation to contribute’ has the meaning provided 
such term under section 4212(a). 
‘‘(8) ENTRY
INTO
CRITICAL
STATUS.—A plan 
shall be treated as entering into critical status as of
141 
the date that such plan is certified to be in critical 
status under subsection (a)(1), is presumed to be in 
critical status under subsection (a)(3), or enters into 
critical status under subsection (b)(7).’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
in section 1 of such Act (as amended by the preceding provi-
sions of this Act) is amended further by inserting after the 
item relating to section 304 the following new item: 
‘‘Sec. 305. Additional funding rules for multiemployer plans in endangered status 
or critical status.’’. 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply with respect to plan years beginning 
after 2005. 
SEC. 203. MEASURES TO FORESTALL INSOLVENCY OF MUL-
TIEMPLOYER PLANS. 
(a) ADVANCE DETERMINATION OF IMPENDING INSOL-
VENCY OVER 5 YEARS.—Section 4245(d)(1) of the Em-
ployee Retirement Income Security Act of 1974 (29 U.S.C. 
1426(d)(1)) is amended— 
(1) by striking ‘‘3 plan years’’ the second place 
it appears and inserting ‘‘5 plan years’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘If the plan sponsor makes such a determina-
tion that the plan will be insolvent in any of the next 
5 plan years, the plan sponsor shall make the com-
parison under this paragraph at least annually until
142 
the plan sponsor makes a determination that the plan 
will not be insolvent in any of the next 5 plan 
years.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to determinations made in 
plan years beginning after 2005. 
SEC. 204. WITHDRAWAL LIABILITY REFORMS. 
(a) REPEAL OF LIMITATION ON WITHDRAWAL LIABIL-
ITY IN THE EVENT OF CERTAIN SALES OF EMPLOYER AS-
SETS TO UNRELATED PARTIES.— 
(1) IN GENERAL.—Section 4225 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1405) is repealed. 
(2) CONFORMING
AMENDMENT.—The table of 
contents in section 1 of such Act is amended by strik-
ing the item relating to section 4225. 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply with respect to sales occur-
ring on or after January 1, 2006. 
(b) REPEAL
OF LIMITATION
TO 20 ANNUAL PAY-
MENTS.— 
(1) IN GENERAL.—Section 4219(c)(1) of such Act 
(29 U.S.C. 1399(c)(1)) is amended by striking sub-
paragraph (B).
143 
(2) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to withdrawals 
occurring on or after January 1, 2006. 
(c) WITHDRAWAL LIABILITY CONTINUES IF WORK 
CONTRACTED OUT.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
4205(b)(2)(A) of such Act (29 U.S.C. 1385(b)(2)(A)) 
is amended by inserting ‘‘or to another party or par-
ties’’ after ‘‘to another location’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply with respect to work trans-
ferred on or after the date of the enactment of this 
Act. 
(d) REPEAL OF SPECIAL RULE FOR LONG AND SHORT 
HAUL TRUCKING INDUSTRY.— 
(1) IN GENERAL.—Subsection (d) of section 4203 
of such Act (29 U.S.C. 1383(d)) is repealed. 
(2) EFFECTIVE
DATE.—The repeal under this 
subsection shall apply with respect to cessations to 
have obligations to contribute to multiemployer plans 
and cessations of covered operations under such plans 
occurring on or after January 1, 2006. 
(e) APPLICATION OF FORGIVENESS RULE TO PLANS 
PRIMARILY COVERING EMPLOYEES IN THE BUILDING AND 
CONSTRUCTION.—
144 
(1) IN GENERAL.—Section 4210(b) of such Act 
(29 U.S.C. 1390(b)) is amended— 
(A) by striking paragraph (1); and 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (4) as paragraphs (1) through (3), re-
spectively. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to plan 
withdrawals occurring on or after January 1, 2006. 
SEC. 205. REMOVAL OF RESTRICTIONS WITH RESPECT TO 
PROCEDURES APPLICABLE TO DISPUTES IN-
VOLVING WITHDRAWAL LIABILITY. 
(a) IN GENERAL.—Section 4221(f)(1) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1401(f)(1)) is amended— 
(1) in subparagraph (A) by inserting ‘‘and’’ 
after ‘‘plan,’’, and 
(2) by striking subparagraphs (B) and (C) and 
inserting the following new subparagraph: 
‘‘(B) such determination is based in whole 
or in part on a finding by the plan sponsor 
under section 4212(c) that a principal purpose 
of any transaction which occurred at least 5 
years (2 years in the case of a small employer) 
before the date of the complete or partial with-
145 
drawal was to evade or avoid withdrawal liabil-
ity under this subtitle,’’. 
(b) SMALL EMPLOYER.—Paragraph (2) of section 
4221(f) of such Act is amended by adding at the end the 
following new subparagraph: 
‘‘(C) SMALL EMPLOYER.—For purposes of 
paragraph (1)(B)— 
‘‘(i) IN
GENERAL.—The term ‘small 
employer’ means any employer who (as of 
immediately before the transaction referred 
to in paragraph (1)(B))— 
‘‘(I) employs not more than 500 
employees, and 
‘‘(II) is required to make con-
tributions to the plan for not more 
than 250 employees. 
‘‘(ii) 
CONTROLLED
GROUP.—Any 
group treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414 
of the Internal Revenue Code of 1986 shall 
be treated as a single employer for purposes 
of this subparagraph.’’. 
(c) ADDITIONAL AMENDMENTS.— 
(1) Subparagraph (A) of section 4221(f)(2) of 
such Act (29 U.S.C. 1401(f)(2)) is amended by strik-
146 
ing ‘‘Notwithstanding’’ and inserting ‘‘In the case of 
a transaction occurring before January 1, 1999, and 
at least 5 years before the date of the complete or par-
tial withdrawal, notwithstanding’’. 
(2) Section 4221(f)(2)(B) of such Act (29 U.S.C. 
1401(f)(2)(B)) is amended— 
(A) by inserting ‘‘with respect to with-
drawal liability payments’’ after ‘‘determina-
tion’’ the first place it appears, and 
(B) by striking ‘‘any’’ and inserting ‘‘the’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to any employer that receives a notifica-
tion under section 4219(b)(1) of the Employee Retirement 
Income Security Act of 1974 on or after the date of the 
enactment of this Act. 
Subtitle B—Amendments to 
Internal Revenue Code of 1986 
SEC. 211. [See introduced bill, page 200, line 8 through page 251, line 15.] 
TITLE III—OTHER PROVISIONS 
SEC. 301. INTEREST RATE ASSUMPTION FOR DETERMINA-
TION OF LUMP SUM DISTRIBUTIONS. 
(a) AMENDMENTS
TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Paragraph (3) of section 
205(g) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1055(g)(3)) is amended to read as follows:
147 
‘‘(3)(A) For purposes of paragraphs (1) and (2), the 
present value shall not be less than the present value cal-
culated by using the applicable mortality table and the ap-
plicable interest rate. 
‘‘(B) For purposes of subparagraph (A)— 
‘‘(i) The term ‘applicable mortality table’ means 
a mortality table, modified as appropriate by the Sec-
retary of the Treasury, based on the mortality table 
specified for the plan year under section 303(h)(3). 
‘‘(ii) The term ‘applicable interest rate’ means 
the adjusted first, second, and third segment rates ap-
plied under rules similar to the rules of section 
303(h)(2)(C) for the month before the date of the dis-
tribution or such other time as the Secretary of the 
Treasury may by regulations prescribe. 
‘‘(iii) For purposes of clause (ii), the adjusted 
first, second, and third segment rates are the first, 
second, and third segment rates which would be deter-
mined under section 303(h)(2)(C) if— 
‘‘(I) section 303(h)(2)(D)(i) were applied by 
substituting ‘the yields’ for ‘a 3-year weighted 
average of yields’, 
‘‘(II) section 303(h)(2)(G)(i)(II) were ap-
plied 
by 
substituting 
‘section
148 
205(g)(3)(A)(ii)(II)’ 
for 
‘section 
302(b)(5)(B)(ii)(II)’, and 
‘‘(III) the applicable percentage under sec-
tion 303(h)(2)(G) were determined in accordance 
with the following table: 
‘‘In the case of plan years beginning in: 
The applicable 
percentage is:
2006 ....................................................................
20 percent
2007 ....................................................................
40 percent
2008 ....................................................................
60 percent
2009 ....................................................................
80 percent.’’. 
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.—[See introduced bill, page 252, line 19 through page 
254, line 5] 
(c) SPECIAL RULE FOR PLAN AMENDMENTS.—A plan 
shall not fail to meet the requirements of section 204(g) of 
the Employee Retirement Income Security Act of 1974 sole-
ly by reason of the adoption by the plan of an amendment 
necessary to meet the requirements of the amendments made 
by this section. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to plan years beginning 
after 2005.
149 
SEC. 302. INTEREST RATE ASSUMPTION FOR APPLYING 
BENEFIT LIMITATIONS TO LUMP SUM DIS-
TRIBUTIONS. 
[See introduced bill, page 254, line 6 through page 
255, line 7] 
SEC. 303. DISTRIBUTIONS DURING WORKING RETIREMENT. 
(a) IN GENERAL.—Subparagraph (A) of section 3(2) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(2)) is amended by adding at the end the 
following new sentence: ‘‘A distribution from a plan, fund, 
or program shall not be treated as made in a form other 
than retirement income or as a distribution prior to termi-
nation of covered employment solely because such distribu-
tion is made to an employee who has attained age 62 and 
who is not separated from employment at the time of such 
distribution.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to distributions in plan years begin-
ning after 2005. 
SEC. 304. OTHER AMENDMENTS RELATING TO PROHIBITED 
TRANSACTIONS. 
(a) DEFINITION
OF
AMOUNT
INVOLVED.—Section 
502(i) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1132(i)) is amended to read as follows: 
‘‘(i)(1) In the case of a transaction prohibited by sec-
tion 406 by a party in interest with respect to a plan to
150 
which this part applies, the Secretary may assess a civil 
penalty against such party in interest. The amount of such 
penalty may not exceed 5 percent of the amount involved 
in each such transaction for each year or part thereof dur-
ing which the prohibited transaction continues, except that, 
if the transaction is not corrected (in such manner as the 
Secretary shall prescribe in regulations) within 90 days 
after notice from the Secretary (or such longer period as 
the Secretary may permit), such penalty may be in an 
amount not more than 100 percent of the amount involved. 
‘‘(2) For purposes of paragraph (1)— 
‘‘(A) Except as provided in subparagraphs (C) 
and (D), the term ‘amount involved’ means, with re-
spect to a prohibited transaction, the greater of— 
‘‘(i) the amount of money and the fair mar-
ket value of the other property given, or 
‘‘(ii) the amount of money and the fair 
market value of the other property received. 
‘‘(B) For purposes of subparagraph (A), fair 
market value— 
‘‘(i) shall be determined as of the date on 
which the prohibited transaction occurs; and 
‘‘(ii) shall be the highest fair market value 
during the period between the date of the trans-
action and the date of correction.
151 
‘‘(C) In the case of services described in sub-
section (b)(2) or (c)(2) of section 408, the term 
‘amount involved’ means only the amount of excess 
compensation. 
‘‘(D) In the case of principal transactions in-
volving securities or commodities, the term ‘amount 
involved’ means only the amount received by the dis-
qualified person in excess of the amount such person 
would have received in an arm’s length transaction 
with an unrelated party as of the same date. 
‘‘(E) For the purposes of this paragraph— 
‘‘(i) the term ‘security’ has the meaning 
given such term by section 475(c)(2) of the Inter-
nal Revenue Code of 1986 (without regard to 
subparagraph (F)(iii) and the last sentence 
thereof) , and 
‘‘(ii) the term ‘commodity’ has the meaning 
given such term by section 475(e)(2) of such Code 
(without regard to subparagraph (D)(iii) there-
of).’’. 
(b) EXEMPTION FOR BLOCK TRADING.—Section 408(b) 
of such Act (29 U.S.C. 1108(b)), as amended by section 601, 
is further amended by adding at the end the following new 
paragraph:
152 
‘‘(15)(A) Any transaction involving the purchase 
or sale of securities between a plan and a party in 
interest (other than a fiduciary) with respect to a 
plan if— 
‘‘(i) the transaction involves a block trade, 
‘‘(ii) at the time of the transaction, the in-
terest of the plan (together with the interests of 
any other plans maintained by the same plan 
sponsor), does not exceed 10 percent of the aggre-
gate size of the block trade, and 
‘‘(iii) the terms of the transaction, includ-
ing the price, are at least as favorable to the 
plan as an arm’s length transaction. 
‘‘(B) For purposes of this paragraph, the term 
‘block trade’ includes any trade which will be allo-
cated across two or more client accounts of a fidu-
ciary.’’. 
(c) BONDING RELIEF.— Section 412(a) of such Act (29 
U.S.C. 1112(a)) is amended— 
(1) by redesignating paragraph (2) as para-
graph (3); 
(2) by striking ‘‘and’’ at the end of paragraph 
(1); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph:
153 
‘‘(2) no bond shall be required of an entity which 
is subject to regulation as a broker or a dealer under 
section 15 of the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) or an entity registered under the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et 
seq.), including requirements imposed by a self-regu-
latory organization (within the meaning of section 
3(a)(26) of such Act (15 U.S.C. 78c(a)(26)), or any 
affiliate with respect to which the broker or dealer 
agrees to be liable to the same extent as if they held 
the assets directly.’’. 
(d) EXEMPTION
FOR ELECTRONIC COMMUNICATION 
NETWORK.—Section 408(b) of such Act (as amended by 
subsection (b)) is further amended by adding at the end 
the following: 
‘‘(16) Any transaction involving the purchase 
and sale of securities or other property between a 
plan and a fiduciary or a party in interest if— 
‘‘(A) the transaction is executed through an 
exchange, electronic communication network, al-
ternative trading system, or similar execution 
system or trading venue subject to regulation 
and oversight by the applicable governmental 
regulating entity,
154 
‘‘(B) neither the execution system nor the 
parties to the transaction take into account the 
identity of the parties in the execution of trades, 
‘‘(C) the transaction is effected pursuant to 
rules designed to match purchases and sales at 
the best price available through the execution sys-
tem, and 
‘‘(D) the price and compensation associated 
with the purchase and sale are not greater than 
an arm’s length transaction with an unrelated 
party.’’. 
(e) CONFORMING ERISA’S PROHIBITED TRANSACTION 
PROVISION TO FERSA.—Section 408(b) of such Act (29 
U.S.C. 1106), as amended by subsection (d), is further 
amended by adding at the end the following new paragraph: 
‘‘(17)(A) transactions described in subpara-
graphs (A), (B), and (D) of section 406(a)(1) between 
a plan and a party that is a party in interest (under 
section 3(14)) solely by reason of providing services, 
but only if in connection with such transaction the 
plan receives no less, nor pays no more, than ade-
quate consideration. 
‘‘(B) For purposes of this paragraph, the term 
‘adequate consideration’ means—
155 
‘‘(i) in the case of a security for which there 
is a generally recognized market— 
‘‘(I) the price of the security prevailing 
on a national securities exchange which is 
registered under section 6 of the Securities 
Exchange Act of 1934, taking into account 
factors such as the size of the transaction 
and marketability of the security, or 
‘‘(II) if the security is not traded on 
such a national securities exchange, a price 
not less favorable to the plan than the offer-
ing price for the security as established by 
the current bid and asked prices quoted by 
persons independent of the issuer and of the 
party in interest, taking into account fac-
tors such as the size of the transaction and 
marketability of the security, and 
‘‘(ii) in the case of an asset other than a se-
curity for which there is a generally recognized 
market, the fair market value of the asset as de-
termined in good faith by a fiduciary or fidu-
ciaries in accordance with regulations prescribed 
by the Secretary.’’. 
(f) 
RELIEF
FOR
FOREIGN
EXCHANGE
TRANS-
ACTIONS.— Section 408(b) of such Act (as amended by the
156 
preceding provisions of this section) is further amended by 
adding at the end the following new paragraph: 
‘‘(18) Any foreign exchange transactions, between 
a bank or broker-dealer, or any affiliate of either 
thereof, and a plan with respect to which the bank or 
broker-dealer, or any affiliate, is a trustee, custodian, 
fiduciary, or other party in interest, if— 
‘‘(A) the transaction is in connection with 
the purchase or sale of securities, 
‘‘(B) at the time the foreign exchange trans-
action is entered into, the terms of the trans-
action are not less favorable to the plan than the 
terms generally available in comparable arm’s 
length foreign exchange transactions between un-
related parties, or the terms afforded by the bank 
or the broker-dealer (or any affiliate thereof) in 
comparable arm’s-length foreign exchange trans-
actions involving unrelated parties, 
‘‘(C) the exchange rate used by the bank or 
broker-dealer for a particular foreign exchange 
transaction must be at a rate no less favorable 
than the rate quoted for transactions of similar 
size at the time of the transaction as displayed 
on an independent service that reports rates of
157 
exchange in the foreign currency market for such 
currency, and 
‘‘(D) the bank or broker-dealer, or any affil-
iate, does not have investment discretion, or pro-
vide investment advice, with respect to the secu-
rities transaction.’’. 
(g) DEFINITION OF PLAN ASSET VEHICLE.—Section 3 
of such Act (29 U.S.C. 1002) is amended by adding at the 
end the following new paragraph: 
‘‘(42) the term ‘plan assets’ means plan assets as de-
fined by such regulations as the Secretary may prescribe, 
except that under such regulations the assets of any entity 
shall not be treated as plan assets if, immediately after the 
most recent acquisition of any equity interest in the entity, 
less than 50 percent of the total value of all equity interests 
in the entity are held by employee benefit plan investors. 
For purposes of determinations pursuant to this paragraph, 
the value of any equity interest owned by a person (other 
than such an employee benefit plan) who has discretionary 
authority or control with respect to the assets of the entity 
or any person who provides investment advice for a fee (di-
rect or indirect) with respect to such assets, or any affiliate 
of such a person, shall be disregarded for purposes of calcu-
lating the 50 percent threshold. An entity shall be consid-
ered to hold plan assets only to the extent of the percentage
158 
of the equity interest owned by benefit plan investors. For 
purposes of this paragraph, the term ‘benefit plan investor’ 
means an employee benefit plan subject to this part and 
any plan to which section 4975 of the Internal Revenue 
Code of 1986 applies.’’. 
SEC. 305. CORRECTION PERIOD FOR CERTAIN TRANS-
ACTIONS INVOLVING SECURITIES AND COM-
MODITIES. 
(a) IN GENERAL.—Section 408(b) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1108(b)), 
as amended by sections 304 and 601, is further amended 
by adding at the end the following new paragraph: 
‘‘(19)(A) Except as provided in subparagraphs 
(B) and (C), a transaction described in section 406(a) 
in connection with the acquisition, holding, or dis-
position of any security or commodity, if the trans-
action is corrected before the end of the correction pe-
riod. 
‘‘(B) Subparagraph (A) does not apply to any 
transaction between a plan and a plan sponsor or its 
affiliates that involves the acquisition or sale of an 
employer security (as defined in section 407(d)(1)) or 
the acquisition, sale, or lease of employer real prop-
erty (as defined in section 407(d)(2)).
159 
‘‘(C) In the case of any fiduciary or other party 
in interest (or any other person knowingly partici-
pating in such transaction), subparagraph (A) does 
not apply to any prohibited transaction if, at the 
time such transaction is discovered, such fiduciary or 
party in interest (or other person) knew that the 
transaction would (without regard to this paragraph) 
constitute a violation of section 406(a). 
‘‘(D) For purposes of this paragraph, the term 
‘correction period’ means, in connection with a fidu-
ciary or party in interest (or other person knowingly 
participating in the transaction), the 14-day period 
beginning on the date on which such fiduciary or 
party in interest (or other person) discovers, or rea-
sonably should have discovered, that the transaction 
would (without regard to this paragraph) constitute 
a violation of section 406(a). 
‘‘(E) For purposes of this paragraph— 
‘‘(i) The term ‘security’ has the meaning 
given such term by section 475(c)(2) of the Inter-
nal Revenue Code of 1986 (without regard to 
subparagraph (F)(iii) and the last sentence 
thereof). 
‘‘(ii) The term ‘commodity’ has the meaning 
given such term by section 475(e)(2) of such Code
160 
(without regard to subparagraph (D)(iii) there-
of). 
‘‘(iii) The term ‘correct’ means, with respect 
to a transaction, to undo the transaction to the 
extent possible, but in any case, to make good to 
the plan or affected account any losses resulting 
from the transaction and to restore to the plan 
or affected account any profits made through use 
of the plan. ’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to any transaction which the fiduciary 
or disqualified person discovers, or reasonably should have 
discovered, after the date of the enactment of this Act, con-
stitutes a prohibited transaction. 
SEC. 306. GOVERNMENT ACCOUNTABILITY OFFICE PENSION 
FUNDING REPORT. 
(a) IN GENERAL.—The Comptroller General of the 
Government Accountability Office shall transmit to the 
Congress a pension funding report not later than one year 
after the date of the enactment of this Act. 
(b) REPORT CONTENT.—The pension funding report 
required under subsection (a) shall include an analysis of 
the feasibility, advantages, and disadvantages of— 
(1) requiring an employee pension benefit plan 
to insure a portion of such plan’s total investments;
161 
(2) requiring an employee pension benefit plan 
to adhere to uniform solvency standards set by the 
Pension Benefit Guaranty Corporation, which are 
similar to those applied on a State level in the insur-
ance industry; and 
(3) amortizing a single-employer defined benefit 
pension plan’s shortfall amortization base (referred to 
in section 303(c)(3) of the Employee Retirement In-
come Security Act of 1974 (as amended by this Act)) 
over various periods of not more than 7 years. 
TITLE IV—IMPROVEMENTS IN 
PBGC GUARANTEE PROVISIONS 
SEC. 401. INCREASES IN PBGC PREMIUMS. 
(a) FLAT-RATE PREMIUMS.—Section 4006(a)(3) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)(3)) is amended— 
(1) by striking clause (i) of subparagraph (A) 
and inserting the following: 
‘‘(i) in the case of a single-employer plan, an 
amount equal to— 
‘‘(I) for plan years beginning after Decem-
ber 31, 1990, and before January 1, 2006, $19, 
or
162 
‘‘(II) for plan years beginning after Decem-
ber 31, 2005, the amount determined under sub-
paragraph (F), 
plus the additional premium (if any) determined 
under subparagraph (E) for each individual who is 
a participant in such plan during the plan year;’’; 
and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(F)(i) Except as otherwise provided in this subpara-
graph, for purposes of determining the annual premium 
rate payable to the corporation by a single-employer plan 
for basic benefits guaranteed under this title, the amount 
determined under this subparagraph is the greater of $30 
or the adjusted amount determined under clause (ii). 
‘‘(ii) For plan years beginning after 2006, the adjusted 
amount determined under this clause is the product derived 
by multiplying $30 by the ratio of— 
‘‘(I) the national average wage index (as defined 
in section 209(k)(1) of the Social Security Act) for the 
first of the 2 calendar years preceding the calendar 
year in which the plan year begins, to 
‘‘(II) the national average wage index (as so de-
fined) for 2004,
163 
with such product, if not a multiple of $1, being rounded 
to the next higher multiple of $1 where such product is a 
multiple of $0.50 but not of $1, and to the nearest multiple 
of $1 in any other case. 
‘‘(iii) For purposes of determining the annual pre-
mium rate payable to the corporation by a single-employer 
plan for basic benefits guaranteed under this title for any 
plan year beginning after 2005 and before 2010— 
‘‘(I) except as provided in subclause (II), the pre-
mium amount referred to in subparagraph (A)(i)(II) 
for any such plan year is the amount set forth in con-
nection with such plan year in the following table: 
‘‘If the plan year begins in: 
The amount is: 
2006 .............................................................................
$21.20 
2007 .............................................................................
$23.40 
2008 .............................................................................
$25.60 
2009 .............................................................................
$27.80; or 
‘‘(II) if the plan’s funding target attainment 
percentage for the plan year preceding the current 
plan year was less than 80 percent, the premium 
amount referred to in subparagraph (A)(i)(II) for 
such current plan year is the amount set forth in con-
nection with such current plan year in the following 
table: 
‘‘If the plan year begins in: 
The amount is:
2006 .............................................................................
$22.67
164 
2007 .............................................................................
$26.33
2008 or 2009 ...............................................................
the amount provided 
under clause (i). 
‘‘(iv) For purposes of this subparagraph, the term 
‘funding target attainment percentage’ has the meaning 
provided such term in section 303(d)(2).’’. 
(b) RISK-BASED PREMIUMS.— 
(1) CONFORMING
AMENDMENTS
RELATED
TO 
FUNDING RULES FOR SINGLE-EMPLOYER PLANS.—Sec-
tion 4006(a)(3)(E) of such Act is amended by striking 
clauses (iii) and (iv) and inserting the following: 
‘‘(iii)(I) For purposes of clause (ii), except as provided 
in subclause (II), the term ‘unfunded vested benefits’ means, 
for a plan year, the amount which would be the plan’s fund-
ing shortfall (as defined in section 303(c)(4)), if the value 
of plan assets of the plan were equal to the fair market value 
of such assets and only vested benefits were taken into ac-
count. 
‘‘(II) The interest rate used in valuing vested benefits 
for purposes of subclause (I) shall be equal to the first, sec-
ond, or third segment rate which would be determined 
under section 303(h)(2)(C) if section 303(h)(2)(D)(i) were 
applied by substituting ‘the yields’ for ‘the 3-year weighted 
average of yields’, as applicable under rules similar to the 
rules under section 303(h)(2)(B).’’.
165 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall apply with respect to plan 
years beginning after 2005. 
TITLE V—DISCLOSURE 
SEC. 501. DEFINED BENEFIT PLAN FUNDING NOTICES. 
(a) APPLICATION
OF PLAN FUNDING NOTICE RE-
QUIREMENTS TO ALL DEFINED BENEFIT PLANS.—Section 
101(f) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1021(f)) is amended— 
(1) in the heading, by striking ‘‘MULTIEM-
PLOYER’’; 
(2) in paragraph (1), by striking ‘‘which is a 
multiemployer plan’’; and 
(3) by striking paragraph (2)(B)(iii) and insert-
ing the following: 
‘‘(iii)(I) in the case of a single-em-
ployer plan, a summary of the rules gov-
erning termination of single-employer plans 
under subtitle C of title IV, or 
‘‘(II) in the case of a multiemployer 
plan, a summary of the rules governing in-
solvent multiemployer plans, including the 
limitations on benefit payments and any 
potential benefit reductions and suspensions 
(and the potential effects of such limita-
166 
tions, reductions, and suspensions on the 
plan); and’’. 
(b) INCLUSION OF STATEMENT OF THE RATIO OF IN-
ACTIVE PARTICIPANTS TO ACTIVE PARTICIPANTS.—Section 
101(f)(2)(B) of such Act (29 U.S.C. 1021(f)(2)(B)) is 
amended— 
(1) in clause (iii)(II) (added by subsection (a)(3) 
of this section), by striking ‘‘and’’ at the end; 
(2) in clause (iv), by striking ‘‘apply.’’ and in-
serting ‘‘apply; and’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(v) a statement of the ratio, as of the 
end of the plan year to which the notice re-
lates, of— 
‘‘(I) the number of participants 
who are not in covered service under 
the plan and are in pay status under 
the plan or have a nonforfeitable right 
to benefits under the plan, to 
‘‘(II) the number of participants 
who are in covered service under the 
plan.’’. 
(c) COMPARISON OF MONTHLY AVERAGE OF VALUE OF 
PLAN ASSETS TO PROJECTED CURRENT LIABILITIES.—
167 
Section 101(f)(2)(B) of such Act (29 U.S.C. 1021(f)(2)(B)) 
(as amended by the preceding provisions of this section) is 
amended further— 
(1) by striking clause (ii) and inserting the fol-
lowing: 
‘‘(ii) a statement of a reasonable esti-
mate of— 
‘‘(I) the value of the plan’s assets 
for the plan year to which the notice 
relates, 
‘‘(II) projected liabilities of the 
plan for the plan year to which the no-
tice relates, and 
‘‘(III) the ratio of the estimated 
amount determined under subclause (I) 
to the estimated amount determined 
under subclause (II);’’; and 
(2) by adding at the end (after and below clause 
(v)) the following: 
‘‘For purposes of determining a plan’s projected 
liabilities for a plan year under clause (ii)(II), 
such projected liabilities shall be determined by 
projecting forward in a reasonable manner to the 
end of the plan year the liabilities of the plan to 
participants and beneficiaries as of the first day
168 
of the plan year, taking into account any signifi-
cant events that occur during the plan year and 
that have a material effect on such liabilities, in-
cluding any plan amendments in effect for the 
plan year.’’. 
(d) STATEMENT
OF PLAN’S FUNDING POLICY
AND 
METHOD OF ASSET ALLOCATION.—Section 101(f)(2)(B) of 
such Act (as amended by the preceding provisions of this 
section) is amended further— 
(1) in clause (iv), by striking ‘‘and’’ at the end; 
(2) in clause (v), by striking the period and in-
serting ‘‘; and’’; and 
(3) by inserting after clause (v) the following 
new clause: 
‘‘(vi) a statement setting forth the 
funding policy of the plan and the asset al-
location of investments under the plan (ex-
pressed as percentages of total assets) as of 
the end of the plan year to which the notice 
relates.’’. 
(e) NOTICE OF FUNDING IMPROVEMENT PLAN OR RE-
HABILITATION
PLAN
ADOPTED
BY
MULTIEMPLOYER 
PLAN.—Section 101(f)(2)(B) of such Act (as amended by 
the preceding provisions of this section) is amended fur-
ther—
169 
(1) in clause (v), by striking ‘‘and’’ at the end; 
(2) in clause (vi), by striking the period and in-
serting ‘‘; and’’; and 
(3) by inserting after clause (vi) the following 
new clause: 
‘‘(vii) a summary of any funding im-
provement plan, rehabilitation plan, or 
modification thereof adopted under section 
305 during the plan year to which the no-
tice relates.’’. 
(f) NOTICE DUE 90 DAYS AFTER PLAN’S VALUATION 
DATE.— 
(1) IN GENERAL.—Section 101(f)(3) of such Act 
(29 U.S.C. 1021(f)(3)) is amended by striking ‘‘two 
months after the deadline (including extensions) for 
filing the annual report for the plan year’’ and in-
serting ‘‘90 days after the end of the plan year’’. 
(2) MODEL NOTICE.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Labor shall publish a model version of the 
notice required by section 101(f) of the Employee Re-
tirement Income Security Act of 1974. 
(g) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2005.
170 
SEC. 502. ADDITIONAL DISCLOSURE REQUIREMENTS. 
(a) ADDITIONAL
ANNUAL
REPORTING
REQUIRE-
MENTS.—Section 103 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1023) is amended— 
(1) in subsection (a)(1)(B), by striking ‘‘sub-
sections (d) and (e)’’ and inserting ‘‘subsections (d), 
(e), and (f)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(f)(1) With respect to any defined benefit plan, an 
annual report under this section for a plan year shall in-
clude the following: 
‘‘(A) The ratio, as of the end of such plan year, 
of— 
‘‘(i) the number of participants who, as of 
the end of such plan year, are not in covered 
service under the plan and are in pay status 
under the plan or have a nonforfeitable right to 
benefits under the plan, to 
‘‘(ii) the number of participants who are in 
covered service under the plan as of the end of 
such plan year. 
‘‘(B) In any case in which any liabilities to par-
ticipants or their beneficiaries under such plan as of 
the end of such plan year consist (in whole or in 
part) of liabilities to such participants and bene-
171 
ficiaries borne by 2 or more pension plans as of im-
mediately before such plan year, the funded ratio of 
each of such 2 or more pension plans as of imme-
diately before such plan year and the funded ratio of 
the plan with respect to which the annual report is 
filed as of the end of such plan year. 
‘‘(C) For purposes of this paragraph, the term 
‘funded ratio’ means, in connection with a plan, the 
percentage which— 
‘‘(i) the value of the plan’s assets is of 
‘‘(ii) the liabilities to participants and 
beneficiaries under the plan. 
‘‘(2) With respect to any defined benefit plan which 
is a multiemployer plan, an annual report under this sec-
tion for a plan year shall include the following: 
‘‘(A) The number of employers obligated to con-
tribute to the plan as of the end of such plan year. 
‘‘(B) The number of participants under the plan 
on whose behalf no employer contributions have been 
made to the plan for such plan year. For purposes of 
this subparagraph, the term ‘employer contribution’ 
means, in connection with a participant, a contribu-
tion made by an employer as an employer of such 
participant.’’.
172 
(b) ADDITIONAL INFORMATION IN ANNUAL ACTUARIAL 
STATEMENT
REGARDING
PLAN
RETIREMENT
PROJEC-
TIONS.—Section 103(d) of such Act (29 U.S.C. 1023(d)) is 
amended— 
(1) by redesignating paragraphs (12) and (13) 
as paragraphs (13) and (14), respectively; and 
(2) by inserting after paragraph (11) the fol-
lowing new paragraph: 
‘‘(12) A statement explaining the actuarial as-
sumptions and methods used in projecting future re-
tirements and forms of benefit distributions under the 
plan.’’. 
(c) FILING AFTER 275 DAYS AFTER PLAN YEAR ONLY 
IN CASES OF HARDSHIP.—Section 104(a)(1) of such Act 
(29 U.S.C. 1024(a)(1)) is amended by inserting after the 
first sentence the following new sentence: ‘‘In the case of 
a pension plan, the Secretary may extend the deadline for 
filing the annual report for any plan year past 275 days 
after the close of the plan year only on a case by case basis 
and only in cases of hardship, in accordance with regula-
tions which shall be prescribed by the Secretary.’’. 
(d) INTERNET DISPLAY
OF INFORMATION.—Section 
104(b) of such Act (29 U.S.C. 1024(b)) is amended by add-
ing at the end the following:
173 
‘‘(5) Identification and basic plan information and ac-
tuarial information included in the annual report for any 
plan year shall be filed with the Secretary in an electronic 
format which accommodates display on the Internet, in ac-
cordance with regulations which shall be prescribed by the 
Secretary. The Secretary shall provide for display of such 
information included in the annual report, within 90 days 
after the date of the filing of the annual report, on a website 
maintained by the Secretary on the Internet and other ap-
propriate media. Such information shall also be displayed 
on any website maintained by the plan sponsor (or by the 
plan administrator on behalf of the plan sponsor) on the 
Internet, in accordance with regulations which shall be pre-
scribed by the Secretary.’’. 
(e) SUMMARY ANNUAL REPORT FILED WITHIN 15 
DAYS AFTER DEADLINE
FOR FILING
OF ANNUAL RE-
PORT.—Section 
104(b)(3) 
of 
such 
Act 
(29 
U.S.C. 
1024(b)(3)) is amended— 
(1) by striking ‘‘Within 210 days after the close 
of the fiscal year of the plan,’’ and inserting ‘‘Within 
15 business days after the due date under subsection 
(a)(1) for the filing of the annual report for the fiscal 
year of the plan,’’; and 
(2) by striking ‘‘the latest’’ and inserting ‘‘such’’.
174 
(f) DISCLOSURE OF PLAN ASSETS AND LIABILITIES IN 
SUMMARY ANNUAL REPORT.— 
(1) IN GENERAL.—Section 104(b)(3) of such Act 
(as amended by subsection (a)) is amended further— 
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 
(B) by adding at the end the following: 
‘‘(B) The material provided pursuant to subparagraph 
(A) to summarize the latest annual report shall be written 
in a manner calculated to be understood by the average 
plan participant and shall set forth the total assets and li-
abilities of the plan for the plan year for which the latest 
annual report was filed and for each of the 2 preceding 
plan years, as reported in the annual report for each such 
plan year under this section.’’. 
(g) INFORMATION MADE AVAILABLE TO PARTICIPANTS, 
BENEFICIARIES, AND EMPLOYERS WITH RESPECT TO MUL-
TIEMPLOYER PLANS.— 
(1) IN GENERAL.—Section 101 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1021) (as amended by section 103(b)(2)(A)) is further 
amended— 
(A) by redesignating subsection (k) as sub-
section (l); and 
(B) by inserting after subsection (j) the fol-
lowing new subsection:
175 
‘‘(k) MULTIEMPLOYER
PLAN
INFORMATION
MADE 
AVAILABLE ON REQUEST.— 
‘‘(1) IN
GENERAL.—Each administrator of a 
multiemployer plan shall furnish to any plan partici-
pant or beneficiary or any employer having an obli-
gation to contribute to the plan, who so requests in 
writing— 
‘‘(A) a copy of any actuarial report received 
by the plan for any plan year which has been in 
receipt by the plan for at least 30 days, and 
‘‘(B) a copy of any financial report pre-
pared for the plan by any plan investment man-
ager or advisor or other person who is a plan fi-
duciary which has been in receipt by the plan 
for at least 30 days. 
‘‘(2) COMPLIANCE.—Information required to be 
provided under paragraph (1) — 
‘‘(A) shall be provided to the requesting par-
ticipant, beneficiary, or employer within 30 days 
after the request in a form and manner pre-
scribed in regulations of the Secretary, and 
‘‘(B) may be provided in written, electronic, 
or other appropriate form to the extent such form 
is reasonably accessible to persons to whom the 
information is required to be provided.
176 
‘‘(3) LIMITATIONS.—In no case shall a partici-
pant, beneficiary, or employer be entitled under this 
subsection to receive more than one copy of any report 
described in paragraph (1) during any one 12-month 
period. The administrator may make a reasonable 
charge to cover copying, mailing, and other costs of 
furnishing copies of information pursuant to para-
graph (1). The Secretary may by regulations pre-
scribe the maximum amount which will constitute a 
reasonable charge under the preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) (as amended by section 
103(b)(2)(B)) is further amended by striking ‘‘sec-
tions 101(j) and 302(b)(7)(F)(iv)’’ and inserting ‘‘sec-
tions 101(j), 101(k), and 302(b)(7)(F)(iv)’’. 
(3) REGULATIONS.—The Secretary shall pre-
scribe regulations under section 101(k)(2) of the Em-
ployee Retirement Income Security Act of 1974 
(added by paragraph (1) of this subsection) not later 
than 90 days after the date of the enactment of this 
Act. 
(h) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY 
TO MULTIEMPLOYER PLANS.—
177 
(1) IN GENERAL.—Section 101 of such Act (as 
amended by subsection (g) of this section) is further 
amended— 
(A) by redesignating subsection (l) as sub-
section (m); and 
(B) by inserting after subsection (k) the fol-
lowing new subsection: 
‘‘(l) NOTICE
OF POTENTIAL WITHDRAWAL LIABIL-
ITY.— 
‘‘(1) IN GENERAL.—The plan sponsor or admin-
istrator of a multiemployer plan shall furnish to any 
employer who has an obligation to contribute under 
the plan and who so requests in writing notice of— 
‘‘(A) the amount which would be the 
amount of such employer’s withdrawal liability 
under part 1 of subtitle E of title IV if such em-
ployer withdrew on the last day of the plan year 
preceding the date of the request, and 
‘‘(B) the average increase, per participant 
under the plan, in accrued liabilities under the 
plan as of the end of such plan year to partici-
pants under such plan on whose behalf no em-
ployer contributions are payable (or their bene-
ficiaries), which would be attributable to such a 
withdrawal by such employer.
178 
For purposes of subparagraph (B), the term ‘employer 
contribution’ means, in connection with a partici-
pant, a contribution made by an employer as an em-
ployer of such participant. 
‘‘(2) COMPLIANCE.—Any notice required to be 
provided under paragraph (1)— 
‘‘(A) shall be provided to the requesting em-
ployer within 180 days after the request in a 
form and manner prescribed in regulations of 
the Secretary, and 
‘‘(B) may be provided in written, electronic, 
or other appropriate form to the extent such form 
is reasonably accessible to employers to whom the 
information is required to be provided. 
‘‘(3) LIMITATIONS.—In no case shall an em-
ployer be entitled under this subsection to receive 
more than one notice described in paragraph (1) dur-
ing any one 12-month period. The person required to 
provide such notice may make a reasonable charge to 
cover copying, mailing, and other costs of furnishing 
such notice pursuant to paragraph (1). The Secretary 
may by regulations prescribe the maximum amount 
which will constitute a reasonable charge under the 
preceding sentence.’’.
179 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) (as amended by para-
graph (1)) is further amended by striking ‘‘sections 
101(j), 101(k), and 302(b)(7)(F)(iv)’’ and inserting 
‘‘sections 
101(j), 
101(k), 
101(l), 
and 
302(b)(7)(F)(iv)’’. 
(i) MODEL FORM.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Labor 
shall publish a model form for providing the statements, 
schedules, and other material required to be provided under 
section 104(b)(3) of the Employee Retirement Income Secu-
rity Act of 1974, as amended by this section. 
(j) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2005. 
SEC. 503. SECTION 4010 FILINGS WITH THE PBGC. 
(a) CHANGE IN CRITERIA FOR PERSONS REQUIRED TO 
PROVIDE INFORMATION TO PBGC.—Section 4010(b) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1310(b)) is amended by striking paragraph (1), by 
redesignating paragraphs (2) and (3) as paragraphs (3) 
and (4), respectively, and by inserting before paragraph (3) 
(as so redesignated) the following new paragraphs:
180 
‘‘(1) the aggregate funding target attainment 
percentage of the plan (as defined in subsection 
(d)(2)) is less than 60 percent; 
‘‘(2)(A) the aggregate funding target attainment 
percentage of the plan (as defined in subsection 
(d)(2)) is less than 75 percent, and 
‘‘(B) the plan sponsor is in an industry with re-
spect to which the corporation determines that there 
is substantial unemployment or underemployment 
and the sales and profits are depressed or declining; 
’’. 
(b) NOTICE TO PARTICIPANTS AND BENEFICIARIES.— 
Section 4010 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1310) is amended by adding at the 
end the following new subsection: 
‘‘(d) 
NOTICE
TO
PARTICIPANTS
AND
BENE-
FICIARIES.— 
‘‘(1) IN GENERAL.—Not later than 90 days after 
the submission by any person to the corporation of 
information or documentary material with respect to 
any plan pursuant to subsection (a), such person 
shall provide notice of such submission to each partic-
ipant and beneficiary under the plan (and under all 
plans maintained by members of the controlled group