‘‘(A) NOTICE
OF
FAILURE.—A person 
committing a failure described in paragraph (1) 
shall notify the Pension Benefit Guaranty Cor-
poration of such failure within 10 days of the 
due date for the required contribution payment. 
‘‘(B) PERIOD OF LIEN.—The lien imposed 
by paragraph (1) shall arise on the due date for 
the required contribution 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 regard to whether such plan con-
tinues to be described in paragraph (2) during 
the period referred to in the preceding 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 shall apply with respect to 
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 Cor-
poration, by the contributing sponsor (or any mem-
ber of the controlled group of the contributing spon-
sor). 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) CONTRIBUTION PAYMENT.—The term 
‘contribution payment’ means, in connection 
with a plan, a contribution payment required to 
be made to the plan, including any required in-
stallment under paragraphs (3) and (4) of sub-
section (i). 
‘‘(B) DUE
DATE; 
REQUIRED
INSTALL-
MENT.—The terms ‘due date’ and ‘required in-
stallment’ have the meanings given such terms 
by subsection (j), except that in the case of a 
payment other than a required installment, the 
due date shall be the date such payment is re-
quired to be made under section 303. 
‘‘(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 of the Internal Rev-
enue Code of 1986.
‘‘(l) QUALIFIED TRANSFERS TO HEALTH BENEFIT 
ACCOUNTS.—In the case of a qualified transfer (as de-
fined in section 420 of the Internal Revenue Code of 
1986), any assets so transferred shall not, for purposes 
of this section, be treated as assets in the plan.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
in section 1 of such Act (as amended by section 101) is 
amended by inserting after the item relating to section 
302 the following new item:
‘‘Sec. 303. Minimum funding standards for single-employer defined benefit pen-
sion plans.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after 2006. 
SEC. 
103. 
BENEFIT 
LIMITATIONS 
UNDER 
SINGLE-EM-
PLOYER PLANS. 
(a) PROHIBITION
OF SHUTDOWN BENEFITS
AND 
OTHER UNPREDICTABLE CONTINGENT EVENT BENEFITS 
UNDER SINGLE-EMPLOYER PLANS.—Section 206 of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) FUNDING-BASED LIMITATION ON SHUTDOWN 
BENEFITS
AND OTHER UNPREDICTABLE CONTINGENT 
EVENT BENEFITS UNDER SINGLE-EMPLOYER PLANS.—
‘‘(1) IN
GENERAL.—No defined benefit plan 
which is a single-employer plan may provide benefits 
to which participants are entitled solely by reason of 
the occurrence of a plant shutdown or any other un-
predictable contingent event occurring during any 
plan year if the funding target attainment percent-
age as of the valuation date of the plan for such 
plan year—
‘‘(A) is less than 80 percent, or 
‘‘(B) would be less than 80 percent taking 
into account such occurrence. 
‘‘(2) EXEMPTION.—Paragraph (1) shall cease 
to apply with respect to any plan year, effective as 
of the first date of the plan year, upon payment by 
the plan sponsor of a contribution (in addition to 
any minimum required contribution under section 
303) equal to—
‘‘(A) in the case of paragraph (1)(A), the 
amount of the increase in the funding target of 
the plan (under section 303) for the plan year 
attributable to the occurrence referred to in 
paragraph (1), and 
‘‘(B) in the case of paragraph (1)(B), the 
amount sufficient to result in a funding target 
attainment percentage of 80 percent.
Rules similar to the rules of subsection (h)(6) shall 
apply for purposes of this paragraph. 
‘‘(3) UNPREDICTABLE CONTINGENT EVENT.—
For purposes of this subsection, the term ‘unpredict-
able contingent event’ means an event other than—
‘‘(A) attainment of any age, performance 
of any service, receipt or derivation of any com-
pensation, or the occurrence of death or dis-
ability, or 
‘‘(B) an event which is reasonably and reli-
ably predictable (as determined by the Sec-
retary of the Treasury). 
‘‘(4) NEW
PLANS.—Paragraph (1) shall not 
apply to a plan for the first 5 plan years of the plan. 
For purposes of this subsection, the reference in this 
subsection to a plan shall include a reference to any 
predecessor plan. 
‘‘(5) DEEMED REDUCTION OF FUNDING BAL-
ANCES.—A rule similar to the rule of subsection 
(h)(8) shall apply for purposes of this subsection.’’. 
(b) OTHER LIMITS ON BENEFITS AND BENEFIT AC-
CRUALS.—
(1) IN GENERAL.—Section 206 of such Act (as 
amended by subsection (a)) is amended further by 
adding at the end the following new subsection: