198
‘‘(II) 
SECRETARIAL
AUTHOR-
ITY.—If the Secretary of the Treasury 
finds that the lowest rate of interest 
permissible under subclause (I) is un-
reasonably high, such Secretary may 
prescribe a lower rate of interest, ex-
cept that such rate may not be less 
than 80 percent of the average rate 
determined under such subclause. 
‘‘(iii) 
ASSUMPTIONS.—Notwith-
standing paragraph (3)(A), the interest 
rate used under the plan shall be—
‘‘(I) determined without taking 
into account the experience of the 
plan and reasonable expectations, but 
‘‘(II) consistent with the assump-
tions which reflect the purchase rates 
which would be used by insurance 
companies to satisfy the liabilities 
under the plan. 
‘‘(7) ANNUAL VALUATION.—
‘‘(A) IN GENERAL.—For purposes of this 
section, a determination of experience gains and 
losses and a valuation of the plan’s liability 
shall be made not less frequently than once
199
every year, except that such determination shall 
be made more frequently to the extent required 
in particular cases under regulations prescribed 
by the Secretary of the Treasury. 
‘‘(B) VALUATION DATE.—
‘‘(i) CURRENT YEAR.—Except as pro-
vided in clause (ii), the valuation referred 
to in subparagraph (A) shall be made as of 
a date within the plan year to which the 
valuation refers or within one month prior 
to the beginning of such year. 
‘‘(ii) USE
OF
PRIOR
YEAR
VALU-
ATION.—The valuation referred to in sub-
paragraph (A) may be made as of a date 
within the plan year prior to the year to 
which the valuation refers if, as of such 
date, the value of the assets of the plan are 
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.
200
‘‘(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 
paragraph (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 
purposes of this subparagraph, such two and one-
half month period may be extended for not more 
than six months under regulations prescribed by the 
Secretary of the Treasury. 
‘‘(9) INTEREST RULE FOR WAIVERS AND EX-
TENSIONS.—The interest rate applicable for any 
plan year for purposes of computing the amortiza-
tion charge described in subsection (b)(2)(C) and in 
connection with an extension granted under sub-
section (d) shall be the greater of—
201
‘‘(A) 150 percent of the Federal mid-term 
rate (as in effect under section 1274 of the In-
ternal 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 re-
quired to amortize any unfunded liability (described 
in any clause of subsection (b)(2)(B)) of any multi-
employer plan shall be extended by the Secretary of 
the Treasury for a period of time (not in excess of 
5 years) if it is demonstrated to such Secretary 
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 
‘‘(C) taking into account the extension, the 
plan is projected to have sufficient assets to 
timely pay its expected benefit liabilities and 
other anticipated expenditures.
202
‘‘(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 such extension would carry out the purposes of 
this Act and would provide adequate protection for 
participants under the plan and their beneficiaries 
and if such Secretary 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 
participants in the aggregate. 
‘‘(3) ADVANCE NOTICE.—
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall, before granting an extension 
under this section, require each applicant to 
provide evidence satisfactory to such Secretary
203
that the applicant has provided notice of the fil-
ing of the application for such extension to each 
affected 
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 guaranteed under title IV and for 
benefit liabilities. 
‘‘(B) CONSIDERATION
OF
RELEVANT
IN-
FORMATION.—The Secretary of the Treasury 
shall consider any relevant information provided 
by a person to whom notice was given under 
paragraph (1).’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 301 of such Act (29 U.S.C. 1081) 
is amended by striking subsection (d). 
(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 De-
cember 31, 2006.