‘‘(5) PRESUMED UNDERFUNDING FOR PURPOSES 
OF BENEFIT LIMITATIONS BASED ON PRIOR YEAR’S 
FUNDING STATUS.— 
‘‘(A) PRESUMPTION OF CONTINUED UNDER-
FUNDING.—In any case in which a benefit limi-
tation under paragraph (1), (2), or (3) has been 
applied to a plan with respect to the plan year 
preceding the current plan year, the funding tar-
get attainment percentage of the plan as of the 
valuation date of the plan for the current plan 
year shall be presumed to be equal to the funding 
target attainment percentage of the plan as of 
the valuation date of the plan for the preceding 
plan year until the enrolled actuary of the plan 
certifies the actual funding target attainment 
percentage of the plan as of the valuation date 
of the plan for the current plan year. 
‘‘(B) PRESUMPTION
OF
UNDERFUNDING 
AFTER 10TH MONTH.—In any case in which no 
such certification is made with respect to the 
plan before the first day of the 10th month of the 
current plan year, for purposes of paragraphs 
(1), (2), and (3), the plan’s funding target at-
tainment percentage shall be conclusively pre-
sumed to be less than 60 percent as of the first
day of such 10th month, and such day shall be 
deemed, for purposes of such paragraphs, to be 
the valuation date of the plan for the current 
plan year. 
‘‘(C) PRESUMPTION
OF
UNDERFUNDING 
AFTER 4TH MONTH FOR NEARLY UNDERFUNDED 
PLANS.—In any case in which— 
‘‘(i) a benefit limitation under para-
graph (1), (2), or (3) did not apply to a 
plan with respect to the plan year preceding 
the current plan year, but the funding tar-
get attainment percentage of the plan for 
such preceding plan year was not more 
than 10 percentage points greater than the 
percentage which would have caused such 
paragraph to apply to the plan with respect 
to such preceding plan year, and 
‘‘(ii) as of the first day of the 4th 
month of the current plan year, the enrolled 
actuary of the plan has not certified the ac-
tual funding target attainment percentage 
of the plan as of the valuation date of the 
plan for the current plan year, 
until the enrolled actuary so certifies, such first 
day shall be deemed, for purposes of such para-
graph, to be the valuation date of the plan for 
the current plan year and the funding target at-
tainment percentage of the plan as of such first 
day shall, for purposes of such paragraph, be 
presumed to be equal to 10 percentage points less 
than the funding target attainment percentage of 
the plan as of the valuation date of the plan for 
such preceding plan year. 
‘‘(6) RESTORATION
BY
PLAN
AMENDMENT
OF 
BENEFITS OR BENEFIT ACCRUAL.—In any case in 
which a prohibition under paragraph (2) of the pay-
ment of lump sum distributions or benefits in any 
other accelerated form or a cessation of benefit accru-
als under paragraph (3) is applied to a plan with re-
spect to any plan year and such prohibition or ces-
sation, as the case may be, ceases to apply to any 
subsequent plan year, the plan may provide for the 
resumption of such benefit payment or such benefit 
accrual only by means of the adoption of a plan 
amendment after the valuation date of the plan for 
such subsequent plan year. The preceding sentence 
shall not apply to a prohibition or cessation required 
by reason of paragraph (5). 
‘‘(7) FUNDING
TARGET
ATTAINMENT
PERCENT-
AGE.—
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘funding target attainment 
percentage’ means, with respect to any plan for 
any plan year, the ratio (expressed as a percent-
age) which— 
‘‘(i) the value of plan assets for the 
plan year (as determined under section 
303(g)) reduced by the pre-funding balance 
and the funding standard carryover balance 
(within the meaning of section 303(f)), 
bears to 
‘‘(ii) the funding target of the plan for 
the plan year (as determined under section 
303(d)(1), but without regard to section 
303(i)(1)). 
‘‘(B) APPLICATION TO PLANS WHICH ARE 
FULLY FUNDED WITHOUT REGARD TO REDUC-
TIONS FOR FUNDING BALANCES.—In the case of 
a plan for any plan year, if the funding target 
attainment percentage is 100 percent or more 
(determined without regard to this subparagraph 
and without regard to the reduction under sub-
paragraph (A)(i) for the pre-funding balance 
and the funding standard carryover balance),
subparagraph (A) shall be applied without re-
gard to such reduction.’’. 
(2) NOTICE REQUIREMENT.— 
(A) IN GENERAL.—Section 101 of such Act 
(29 U.S.C. 1021) is amended— 
(i) by redesignating subsection (j) as 
subsection (k); and 
(ii) by inserting after subsection (i) the 
following new subsection: 
‘‘(j) NOTICE OF FUNDING-BASED LIMITATION ON CER-
TAIN FORMS OF DISTRIBUTION.—The plan administrator 
of a single-employer plan shall provide a written notice to 
plan participants and beneficiaries within 30 days after 
the plan has become subject to the restriction described in 
section 206(h)(2) or at such other time as may be deter-
mined by the Secretary.’’. 
(B) ENFORCEMENT.—Section 502(c)(4) of 
such Act (29 U.S.C. 1132(c)(4)) is amended by 
striking ‘‘section 302(b)(7)(F)(vi)’’ and inserting 
‘‘sections 101(j) and 302(b)(7)(F)(vi)’’. 
(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 or 
section 411(d)(6) of the Internal Revenue Code of 1986 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.— 
(1) SHUTDOWN BENEFITS.—Except as provided 
in paragraph (3), the amendments made by sub-
section (a) shall apply with respect to plant shut-
downs, or other unpredictable contingent events, oc-
curring after 2006. 
(2) OTHER BENEFITS.—Except as provided in 
paragraph (3), the amendments made by subsection 
(b) shall apply with respect to plan years beginning 
after 2006. 
(3) COLLECTIVE
BARGAINING
EXCEPTION.—In 
the case of a plan maintained pursuant to 1 or more 
collective bargaining agreements between employee 
representatives and 1 or more employers ratified be-
fore the date of the enactment of this Act, the amend-
ments made by this subsection shall not apply to plan 
years beginning before the earlier of— 
(A) the later of— 
(i) the date on which the last collective 
bargaining agreement relating to the plan 
terminates (determined without regard to 
any extension thereof agreed to after the 
date of the enactment of this Act), or
(ii) the first day of the first plan year 
to which the amendments made by this sub-
section would (but for this subparagraph) 
apply, or 
(B) January 1, 2009. 
For purposes of clause (i), any plan amendment 
made pursuant to a collective bargaining agreement 
relating to the plan which amends the plan solely to 
conform to any requirement added by this subsection 
shall not be treated as a termination of such collective 
bargaining agreement. 
SEC. 104. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) MISCELLANEOUS AMENDMENTS TO TITLE I.—Sub-
title B of title I of such Act (29 U.S.C. 1021 et seq.) is 
amended— 
(1) in section 101(d)(3), by striking ‘‘section 
302(e)’’ and inserting ‘‘section 303(j)’’; 
(2) in section 101(f)(2)(B), by striking clause (i) 
and inserting the following: 
‘‘(i) a statement as to whether— 
‘‘(I) in the case of a single-em-
ployer plan, the plan’s funding target 
attainment percentage (as defined in 
section 303(d)(2)), or
‘‘(II) in the case of a multiem-
ployer plan, the plan’s funded percent-
age (as defined in section 305(d)(2)), 
is at least 100 percent (and, if not, the ac-
tual percentage);’’; 
(3) in section 103(d)(8)(B), by striking ‘‘the re-
quirements of section 302(c)(3)’’ and inserting ‘‘the 
applicable requirements of sections 303(h) and 
304(c)(3)’’; 
(4) in section 103(d), by striking paragraph (11) 
and inserting the following: 
‘‘(11) If the current value of the assets of the 
plan is less than 70 percent of— 
‘‘(A) in the case of a single-employer plan, 
the funding target (as defined in section 
303(d)(1)) of the plan, or 
‘‘(B) in the case of a multiemployer plan, 
the current liability (as defined in section 
304(c)(6)(D)) under the plan, 
the percentage which such value is of the amount de-
scribed in subparagraph (A) or (B).’’; 
(5) in section 203(a)(3)(C), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’; 
(6) in section 204(g)(1), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’;
(7) in section 204(i)(2)(B), by striking ‘‘section 
302(c)(8)’’ and inserting ‘‘section 302(d)(2)’’; 
(8) in section 204(i)(3), by striking ‘‘funded cur-
rent liability percentage (within the meaning of sec-
tion 302(d)(8) of this Act)’’ and inserting ‘‘funding 
target attainment percentage (as defined in section 
303(d)(2))’’; 
(9) in section 204(i)(4), by striking ‘‘section 
302(c)(11)(A), 
without 
regard 
to 
section 
302(c)(11)(B)’’ and inserting ‘‘section 302(b)(1), 
without regard to section 302(b)(2)’’; 
(10) in section 206(e)(1), by striking ‘‘section 
302(d)’’ and inserting ‘‘section 303(j)(4)’’, and by 
striking ‘‘section 302(e)(5)’’ and inserting ‘‘section 
303(j)(4)(E)(i)’’; 
(11) in section 206(e)(3), by striking ‘‘section 
302(e) by reason of paragraph (5)(A) thereof’’ and in-
serting ‘‘section 303(j)(3) by reason of section 
303(j)(4)(A)’’; and 
(12) in sections 101(e)(3), 403(c)(1), and 
408(b)(13), by striking ‘‘American Jobs Creation Act 
of 2004’’ and inserting ‘‘Pension Protection Act of 
2005’’. 
(b) MISCELLANEOUS AMENDMENTS TO TITLE IV.— 
Title IV of such Act is amended—
(1) 
in 
section 
4001(a)(13) 
(29 
U.S.C. 
1301(a)(13)), by striking ‘‘302(c)(11)(A)’’ and insert-
ing ‘‘302(b)(1)’’, by striking ‘‘412(c)(11)(A)’’ and in-
serting ‘‘412(b)(1)’’, by striking ‘‘302(c)(11)(B)’’ and 
inserting 
‘‘302(b)(2)’’, 
and 
by 
striking 
‘‘412(c)(11)(B)’’ and inserting ‘‘412(b)(2)’’; 
(2) in section 4003(e)(1) (29 U.S.C. 1303(e)(1)), 
by striking ‘‘302(f)(1)(A) and (B)’’ and inserting 
‘‘303(k)(1)(A) 
and 
(B)’’, 
and 
by 
striking 
‘‘412(n)(1)(A) and (B)’’ and inserting ‘‘430(k)(1)(A) 
and (B)’’; 
(3) in section 4010(b)(2) (29 U.S.C. 1310(b)(2)), 
by striking ‘‘302(f)(1)(A) and (B)’’ and inserting 
‘‘303(k)(1)(A) 
and 
(B)’’, 
and 
by 
striking 
‘‘412(n)(1)(A) and (B)’’ and inserting ‘‘430(k)(1)(A) 
and (B)’’; 
(4) in section 4011(b) (29 U.S.C. 1311(b)), by 
striking ‘‘to which’’ and all that follows and inserting 
‘‘for any plan year for which the plan’s funding tar-
get attainment percentage (as defined in section 
303(d)(2)) is at least 90 percent.’’; 
(5) in section 4062(c)(1) (29 U.S.C. 1362(c)(1)), 
by striking paragraphs (1), (2), and (3) and inserting 
the following:
‘‘(1)(A) in the case of a single-employer plan, the 
sum of the shortfall amortization charge (within the 
meaning of section 303(c)(1) of this Act and 430(c)(1) 
of the Internal Revenue Code of 1986) with respect to 
the plan (if any) for the plan year in which the ter-
mination date occurs, plus the aggregate total of 
shortfall amortization installments (if any) deter-
mined for succeeding plan years under section 
303(c)(2) of this Act and section 430(c)(2) of such 
Code (which, for purposes of this subparagraph, shall 
include any increase in such sum which would result 
if all applications for waivers of the minimum fund-
ing standard under section 302(c) of this Act and sec-
tion 412(c) of such Code which are pending with re-
spect to such plan were denied and if no additional 
contributions (other than those already made by the 
termination date) were made for the plan year in 
which the termination date occurs or for any previous 
plan year), or 
‘‘(B) in the case of a multiemployer plan, the 
outstanding balance of the accumulated funding defi-
ciencies (within the meaning of section 304(a)(2) of 
this Act and section 431(a) of the Internal Revenue 
Code of 1986) of the plan (if any) (which, for pur-
poses of this subparagraph, shall include the amount
of any increase in such accumulated funding defi-
ciencies of the plan which would result if all pending 
applications for waivers of the minimum funding 
standard under section 302(c) of this Act or section 
412(c) of such Code and for extensions of the amorti-
zation period under section 304(d) of this Act or sec-
tion 431(d) of such Code with respect to such plan 
were denied and if no additional contributions (other 
than those already made by the termination date) 
were made for the plan year in which the termination 
date occurs or for any previous plan year), 
‘‘(2)(A) in the case of a single-employer plan, the 
sum of the waiver amortization charge (within the 
meaning of section 303(e)(1) of this Act and 430(j)(2) 
of the Internal Revenue Code of 1986) with respect to 
the plan (if any) for the plan year in which the ter-
mination date occurs, plus the aggregate total of 
waiver amortization installments (if any) determined 
for succeeding plan years under section 303(e)(2) of 
this Act and section 430(j)(3) of such Code, or 
‘‘(B) in the case of a multiemployer plan, the 
outstanding balance of the amount of waived funding 
deficiencies of the plan waived before such date under 
section 302(c) of this Act or section 412(c) of such 
Code (if any), and
‘‘(3) in the case of a multiemployer plan, the 
outstanding balance of the amount of decreases in the 
minimum funding standard allowed before such date 
under section 304(d) of this Act or section 431(d) of 
such Code (if any);’’; 
(6) in section 4071 (29 U.S.C. 1371), by striking 
‘‘302(f)(4)’’ and inserting ‘‘303(k)(4)’’; 
(7) 
in 
section 
4243(a)(1)(B) 
(29 
U.S.C. 
1423(a)(1)(B)), by striking ‘‘302(a)’’ and inserting 
‘‘304(a)’’, and, in clause (i), by striking ‘‘302(a)’’ and 
inserting ‘‘304(a)’’; 
(8) in section 4243(f)(1) (29 U.S.C. 1423(f)(1)), 
by striking ‘‘303(a)’’ and inserting ‘‘302(c)’’; 
(9) in section 4243(f)(2) (29 U.S.C. 1423(f)(2)), 
by striking ‘‘303(c)’’ and inserting ‘‘302(c)(3)’’; and 
(10) in section 4243(g) (29 U.S.C. 1423(g)), by 
striking ‘‘302(c)(3)’’ and inserting ‘‘304(c)(3)’’. 
(c) AMENDMENTS TO REORGANIZATION PLAN NO. 4 OF 
1978.—Section 106(b)(ii) of Reorganization Plan No. 4 of 
1978 (ratified and affirmed as law by Public Law 98–532 
(98 Stat. 2705)) is amended by striking ‘‘302(c)(8)’’ and 
inserting ‘‘302(d)(2)’’, by striking ‘‘304(a) and (b)(2)(A)’’ 
and inserting ‘‘304(d)(1), (d)(2), and (e)(2)(A)’’, and by 
striking ‘‘412(c)(8), (e), and (f)(2)(A)’’ and inserting 
‘‘412(d)(2) and 431(d)(1), (d)(2), and (e)(2)(A)’’.
(d) REPEAL OF EXPIRED AUTHORITY FOR TEMPORARY 
VARIANCES.— 
(1) IN GENERAL.—Section 207 of such Act (29 
U.S.C. 1057) 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 207. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after 2005. 
Subtitle B—Amendments to 
Internal Revenue Code of 1986 
SEC. 111. [See introduced bill, page 71, line 1 through page 140, line 13.] 
Subtitle C—Other Provisions 
SEC. 121. MODIFICATION OF TRANSITION RULE TO PEN-
SION FUNDING REQUIREMENTS. 
(a) IN GENERAL.—In the case of a plan that— 
(1) was not required to pay a variable rate pre-
mium for the plan year beginning in 1996, 
(2) has not, in any plan year beginning after 
1995, merged with another plan (other than a plan 
sponsored by an employer that was in 1996 within 
the controlled group of the plan sponsor); and 
(3) is sponsored by a company that is engaged 
primarily in the interurban or interstate passenger 
bus service,
the rules described in subsection (b) shall apply for any 
plan year beginning after 2005. 
(b) MODIFIED RULES.—The rules described in this 
subsection are as follows: 
(1) For purposes of section 430(i)(3) of the Inter-
nal Revenue Code of 1986 and section 303(j)(3) of the 
Employee Retirement Income Security Act of 1974, 
the plan shall be treated as not having a funding 
shortfall for any plan year. 
(2) For purposes of— 
(A) determining unfunded vested benefits 
under section 4006(a)(3)(E)(iii) of such Act, and 
(B) determining any present value or mak-
ing any computation under section 412 of such 
Code or section 302 of such Act, 
the mortality table shall be the mortality table used 
by the plan. 
(3) Notwithstanding section 303(f)(4)(B) of such 
Act, for purposes of section 303(c)(4)(B) of such Act, 
the value of plan assets is deemed to be such amount, 
reduced by the amount of the pre-funding balance if, 
pursuant to a binding written agreement with the 
Pension Benefit Guaranty Corporation entered into 
before January 1, 2006, the funding standard carry-
over balance is not available to reduce the minimum 
required contribution for the plan year. 
(4) Section 430(c)(4)(B) of such Code and sec-
tion 303(c)(4)(B) of such Act (relating to phase-in of 
funding target for determination of funding shortfall) 
shall each be applied by substituting ‘‘2011’’ for 
‘‘2010’’ therein and by substituting for the table there-
in the following: 
In the case of a plan year beginning in calendar 
year: 
The appli-
cable per-
centage 
is: 
2006 .......................................................................................................
90 percent
2007 .......................................................................................................
92 percent
2008 .......................................................................................................
94 percent
2009 .......................................................................................................
96 percent
2010 .......................................................................................................
98 percent. 
(c) DEFINITIONS.—Any term used in this section 
which is also used in section 303 of such Act shall have 
the meaning provided such term in such section. 
(d) CONFORMING AMENDMENT.— 
(1) Section 769 of the Retirement Protection Act 
of 1994 (26 U.S.C. 412 note) is amended by striking 
subsection (c). 
(2) The amendment made this subsection shall 
apply to plan years beginning after 2005.
SEC. 122. TREATMENT OF NONQUALIFIED DEFERRED COM-
PENSATION PLANS WHEN EMPLOYER DE-
FINED BENEFIT PLAN IN AT-RISK STATUS. 
[See introduced bill, page 142, line 3 through page 
143, line 16] 
TITLE II—FUNDING RULES FOR 
MULTIEMPLOYER 
DEFINED 
BENEFIT PLANS 
Subtitle A—Amendments to Em-
ployee Retirement Income Secu-
rity Act of 1974 
SEC. 201. FUNDING RULES FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) IN GENERAL.—Part 3 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 (as 
amended by section 102) is amended further by inserting 
after section 303 the following new section: 
‘‘MINIMUM FUNDING STANDARDS FOR MULTIEMPLOYER 
PLANS 
‘‘SEC. 304. (a) IN GENERAL.—For purposes of section 
302, the accumulated funding deficiency of a multiemployer 
plan for any plan year is— 
‘‘(1) except as provided in paragraph (2), the 
amount, determined as of the end of the plan year, 
equal to the excess (if any) of the total charges to the 
funding standard account of the plan for all plan