301 
HR 2830 PCS 
‘‘(1) BARGAINING
PARTY.—The term ‘bar-
gaining party’ means, in connection with a multiem-
ployer 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 em-
ployer. 
‘‘(2) FUNDED PERCENTAGE.—The term ‘fund-
ed 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 sec-
tion 431(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 
meaning provided such term in section 431(a). 
‘‘(4) ACTIVE PARTICIPANT.—The term ‘active 
participant’ means, in connection with a multiem-
ployer plan, a participant who is in covered service 
under the plan.
302 
HR 2830 PCS 
‘‘(5) INACTIVE PARTICIPANT.—The term ‘inac-
tive participant’ means, in connection with a multi-
employer 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, such person is entitled 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) of the Employee 
Retirement Income Security Act of 1974. 
‘‘(8) ENTRY INTO CRITICAL STATUS.—A plan 
shall be treated as entering into critical status as of
303 
HR 2830 PCS 
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) EXCISE TAX ON FAILURES TO ACT WITH RE-
SPECT TO MULTIEMPLOYER PLANS IN CRITICAL STA-
TUS.—Section 4971 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (g) as subsection 
(h) and by inserting after subsection (f) the following: 
‘‘(g) MULTIEMPLOYER PLANS
IN CRITICAL STA-
TUS.— 
‘‘(1) SUBSTITUTION OF EXCISE TAX FOR INI-
TIAL AND ADDITIONAL TAX.—In the case of a multi-
employer plan to which section 432(c) applies for a 
period, subsections (a) and (b) shall not apply with 
respect to such period. 
‘‘(2) FAILURE
TO
ADOPT
REHABILITATION 
PLAN.— 
‘‘(A) IN GENERAL.—In the case of a multi-
employer plan to which section 432(c) applies, 
there is hereby imposed a tax on the failure of 
such plan to adopt a rehabilitation plan. 
‘‘(B) AMOUNT OF TAX.—The amount of 
the tax imposed under subparagraph (A) with
304 
HR 2830 PCS 
respect to any plan sponsor shall be the greater 
of— 
‘‘(i) the amount of tax imposed under 
subsection (a) (determined without regard 
to this subsection), or 
‘‘(ii) the amount equal to $1,100 mul-
tiplied by the number of days in the period 
beginning on the first day of the 240-day 
period described in section 432(c)(1) and 
ending on the day on which the rehabilita-
tion plan is adopted. 
‘‘(C) LIABILITY FOR TAX.— 
‘‘(i) IN GENERAL.—The tax imposed 
by subparagraph (A) shall be paid by each 
plan sponsor. 
‘‘(ii) PLAN SPONSOR.—For purposes 
of clause (i), the term ‘plan sponsor’ in the 
case of a multiemployer plan means the as-
sociation, committee, joint board of trust-
ees, or other similar group of representa-
tives of the parties who establish or main-
tain the plan. 
‘‘(3) FAILURE TO COMPLY WITH REHABILITA-
TION PLAN.—