274 
from the plan reduced by the 
product of— 
‘‘(I) the plan’s funding tar-
get attainment percentage for 
the plan year, and 
‘‘(II) the sum of the pur-
chases of annuities, payments 
of single sums, and such other 
disbursements 
as 
the 
Sec-
retary shall provide in regula-
tions. 
‘‘(v) LIQUID ASSETS.—The term 
‘liquid assets’ means cash, mar-
ketable securities, and such other 
assets as specified by the Sec-
retary in regulations. 
‘‘(vi) 
QUARTER.—The 
term 
‘quarter’ means, with respect to 
any required installment, the 3- 
month 
period 
preceding 
the 
month in which the due date for 
such installment occurs. 
‘‘(F) REGULATIONS.—The Secretary 
may prescribe such regulations as are
275 
necessary to carry out this para-
graph. 
‘‘(k) IMPOSITION OF LIEN WHERE FAILURE TO 
MAKE REQUIRED CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—In the case of a plan 
to which this subsection applies, if— 
‘‘(A) any person fails to make a 
contribution payment required by 
section 412 and this section before 
the due date for such payment, and 
‘‘(B) the unpaid balance of such 
payment (including interest), when 
added to the aggregate unpaid bal-
ance of all preceding such payments 
for which payment was not made be-
fore the due date (including interest), 
exceeds $1,000,000, 
then there shall be a lien in favor of the 
plan in the amount determined under 
paragraph (3) upon all property and 
rights to property, whether real or per-
sonal, belonging to such person and any 
other person who is a member of the 
same controlled group of which such per-
son is a member.
276 
‘‘(2) PLANS
TO
WHICH
SUBSECTION
AP-
PLIES.—This subsection shall apply to a 
defined benefit plan (other than a multi-
employer plan) for any plan year for 
which the funding target attainment per-
centage (as defined in subsection (d)(2)) 
of such plan is less than 100 percent. This 
subsection shall not apply to any plan to 
which section 4021 of the Employee Re-
tirement Income Security Act of 1974 
does not apply (as such section is in ef-
fect on the date of the enactment of the 
Pension Protection Act of 2005). 
‘‘(3) AMOUNT OF LIEN.—For purposes of 
paragraph (1), the amount of the lien 
shall be equal to the aggregate unpaid 
balance of contribution payments re-
quired under this section and section 412 
for which payment has not been made be-
fore the due date. 
‘‘(4) NOTICE OF FAILURE; LIEN.— 
‘‘(A) NOTICE OF FAILURE.—A person 
committing a failure described in 
paragraph (1) shall notify the Pension 
Benefit Guaranty Corporation of such
277 
failure within 10 days of the due date 
for the required contribution pay-
ment. 
‘‘(B) PERIOD OF LIEN.—The lien im-
posed by paragraph (1) shall arise on 
the due date for the required con-
tribution payment and shall continue 
until the last day of the first plan 
year in which the plan ceases to be 
described in paragraph (1)(B). Such 
lien shall continue to run without re-
gard to whether such plan continues 
to be described in paragraph (2) dur-
ing the period referred to in the pre-
ceding sentence. 
‘‘(C) CERTAIN
RULES
TO
APPLY.— 
Any amount with respect to which a 
lien is imposed under paragraph (1) 
shall be treated as taxes due and 
owing the United States and rules 
similar to the rules of subsections (c), 
(d), and (e) of section 4068 of the Em-
ployee Retirement Income Security 
Act of 1974 shall apply with respect to
278 
a lien imposed by subsection (a) and 
the amount with respect to such lien. 
‘‘(5) ENFORCEMENT.—Any lien created 
under paragraph (1) may be perfected 
and enforced only by the Pension Benefit 
Guaranty Corporation, or at the direction 
of the Pension Benefit Guaranty Corpora-
tion, by the contributing sponsor (or any 
member of the controlled group of the 
contributing sponsor). 
‘‘(6) DEFINITIONS.—For purposes of 
this subsection— 
‘‘(A) CONTRIBUTION PAYMENT.—The 
term ‘contribution payment’ means, 
in connection with a plan, a contribu-
tion payment required to be made to 
the plan, including any required in-
stallment under paragraphs (3) and 
(4) of subsection (i). 
‘‘(B) DUE DATE; REQUIRED INSTALL-
MENT.—The terms ‘due date’ and ‘re-
quired installment’ have the mean-
ings given such terms by subsection 
(j), except that in the case of a pay-
ment other than a required install-
279 
ment, the due date shall be the date 
such payment is required to be made 
under section 430. 
‘‘(C) 
CONTROLLED
GROUP.—The 
term ‘controlled group’ means any 
group treated as a single employer 
under subsections (b), (c), (m), and (o) 
of section 414. 
‘‘(l) QUALIFIED TRANSFERS TO HEALTH BEN-
EFIT ACCOUNTS.—In the case of a qualified 
transfer (as defined in section 420), any assets 
so transferred shall not, for purposes of this 
section, be treated as assets in the plan.’’. 
(b) EFFECTIVE
DATE.—The amendments 
made by this section shall apply with respect 
to plan years beginning after December 31, 
2006. 
SEC. 
113. 
BENEFIT 
LIMITATIONS 
UNDER 
SINGLE-EM-
PLOYER PLANS. 
(a) PROHIBITION
OF SHUTDOWN BENEFITS 
AND OTHER UNPREDICTABLE CONTINGENT EVENT 
BENEFITS UNDER SINGLE-EMPLOYER PLANS.— 
(1) IN
GENERAL.—Part III of sub-
chapter D of chapter 1 of the Internal