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‘‘(A) IN
GENERAL.—Notwithstanding sec-
tion 4971(g) of the Internal Revenue Code of
1986, if a plan fails to meet the requirements of
subsection (c)(3) by the end of the funding im-
provement period, the plan shall be treated as
having an accumulated funding deficiency for
purposes of section 4971 of such Code for the last
plan year in such period (and each succeeding
plan year until such requirements are met) in
an amount equal to the greater of the amount of
the contributions necessary to meet such require-
ments or the amount of such accumulated fund-
ing deficiency without regard to this paragraph.
‘‘(B) WAIVER.—In the case of a failure de-
scribed in subparagraph (A) which is due to rea-
sonable cause and not to willful neglect, the Sec-
retary of the Treasury may waive part or all of
the tax imposed by section 4971 of such Code to
the extent that the payment of such tax would be
excessive or otherwise inequitable relative to the
failure involved.
‘‘(e) REHABILITATION PLAN MUST BE ADOPTED FOR
MULTIEMPLOYER PLANS IN CRITICAL STATUS.—
‘‘(1) IN GENERAL.—In any case in which a mul-
tiemployer plan is in critical status for a plan year,
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the 
plan 
sponsor, 
in 
accordance 
with 
this
subsection—
‘‘(A) shall adopt a rehabilitation plan not
later than 240 days following the required date
for the actuarial certification of critical status
under subsection (b)(3)(A), and
‘‘(B) within 30 days after the adoption of
the rehabilitation plan—
‘‘(i) shall provide to the bargaining
parties 1 or more schedules showing revised
benefit 
structures, 
revised 
contribution
structures, or both, which, if adopted, may
reasonably be expected to enable the multi-
employer plan to emerge from critical status
in accordance with the rehabilitation plan,
and
‘‘(ii) may, if the plan sponsor deems
appropriate, prepare and provide the bar-
gaining parties with additional information
relating to contribution rates or benefit re-
ductions, alternative schedules, or other in-
formation relevant to emerging from critical
status in accordance with the rehabilitation
plan.
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The schedule or schedules described in subparagraph
(B)(i) shall reflect reductions in future benefit accru-
als and increases in contributions that the plan spon-
sor determines are reasonably necessary to emerge
from critical status. One schedule shall be designated
as the default schedule and such schedule shall assume
that there are no increases in contributions under the
plan other than the increases necessary to emerge
from critical status after future benefit accruals and
other benefits (other than benefits the reduction or
elimination of which are not permitted under section
204(g)) have been reduced to the maximum extent
permitted by law.
‘‘(2) EXCEPTION FOR YEARS AFTER PROCESS BE-
GINS.—Paragraph (1) shall not apply to a plan year
if such year is in a rehabilitation plan adoption pe-
riod or rehabilitation period by reason of the plan
being in critical status for a preceding plan year. For
purposes of this section, such preceding plan year
shall be the initial critical year with respect to the re-
habilitation plan to which it relates.
‘‘(3) REHABILITATION
PLAN.—For purposes of
this section—
‘‘(A) IN GENERAL.—A rehabilitation plan is
a plan which consists of—
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‘‘(i) actions which will enable, under
reasonable actuarial assumptions, the plan
to cease to be in critical status by the end
of the rehabilitation period and may in-
clude reductions in plan expenditures (in-
cluding plan mergers and consolidations),
reductions in future benefit accruals or in-
creases in contributions, if agreed to by the
bargaining parties, or any combination of
such actions, or
‘‘(ii) if the plan sponsor determines
that, based on reasonable actuarial assump-
tions and upon exhaustion of all reasonable
measures, the plan can not reasonably be
expected to emerge from critical status by
the end of the rehabilitation period, reason-
able measures to emerge from critical status
at a later time or to forestall possible insol-
vency (within the meaning of section 4245).
Such plan shall include the schedules required to
be provided under paragraph (1)(B)(i). If clause
(ii) applies, such plan shall set forth the alter-
natives considered, explain why the plan is not
reasonably expected to emerge from critical sta-
tus by the end of the rehabilitation period, and
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specify when, if ever, the plan is expected to
emerge from critical status in accordance with
the rehabilitation plan.
‘‘(B) UPDATES
TO
REHABILITATION
PLAN
AND SCHEDULES.—
‘‘(i) REHABILITATION PLAN.—The plan
sponsor shall annually update the rehabili-
tation plan and shall file the update with
the plan’s annual report under section 104.
‘‘(ii) SCHEDULES.—The plan sponsor
may periodically update any schedule of
contribution rates provided under this sub-
section to reflect the experience of the plan,
except that the schedule or schedules de-
scribed in paragraph (1)(B)(i) shall be up-
dated at least once every 3 years.
‘‘(iii) DURATION
OF
SCHEDULE.—A
schedule of contribution rates provided by
the plan sponsor and relied upon by bar-
gaining parties in negotiating a collective
bargaining agreement shall remain in effect
for the duration of that collective bar-
gaining agreement.
‘‘(C) DEFAULT SCHEDULE.—If the collective
bargaining agreement providing for contribu-
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tions under a multiemployer plan that was in
effect at the time the plan entered critical status
expires and, after receiving a schedule from the
plan sponsor under paragraph (1)(B)(i), the bar-
gaining parties have not adopted a collective
bargaining agreement with terms consistent with
such a schedule, the default schedule described in
the last sentence of paragraph (1) shall go into
effect with respect to those bargaining parties.
‘‘(4) REHABILITATION PERIOD.—For purposes of
this section—
‘‘(A) IN GENERAL.—The rehabilitation pe-
riod for a plan in critical status is the 10-year
period beginning on the first day of the first
plan year of the multiemployer plan following
the earlier of—
‘‘(i) the second anniversary of the date
of the adoption of the rehabilitation plan, or
‘‘(ii) the expiration of the collective
bargaining agreements in effect on the date
of the due date for the actuarial certifi-
cation of critical status for the initial crit-
ical year under subsection (a)(1) and cov-
ering, as of such date at least 75 percent of
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the active participants in such multiem-
ployer plan.
If a plan emerges from critical status as pro-
vided under subparagraph (B) before the end of
such 10-year period, the rehabilitation period
shall end with the plan year preceding the plan
year for which the determination under subpara-
graph (B) is made.
‘‘(B) EMERGENCE.—A plan in critical sta-
tus shall remain in such status until a plan year
for which the plan actuary certifies, in accord-
ance with subsection (b)(3)(A), that the plan is
not projected to have an accumulated funding
deficiency for the plan year or any of the 9 suc-
ceeding plan years, without regard to use of the
shortfall method or any extension of amortiza-
tion periods under section 304(d).
‘‘(5) PENALTY
IF
NO
REHABILITATION
PLAN
ADOPTED.—A failure of a plan sponsor to adopt a re-
habilitation plan by the date specified in paragraph
(1)(A) shall be treated for purposes of section
502(c)(2) as a failure or refusal by the plan adminis-
trator to file the annual report required to be filed
with the Secretary under section 101(b)(4).
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‘‘(6) REHABILITATION
PLAN
ADOPTION
PE-
RIOD.—For purposes of this section, the term ‘reha-
bilitation plan adoption period’ means the period be-
ginning on the date of the certification under sub-
section (b)(3)(A) for the initial critical year and end-
ing on the day before the first day of the rehabilita-
tion period.
‘‘(7) LIMITATION ON REDUCTION IN RATES OF
FUTURE ACCRUALS.—Any reduction in the rate of fu-
ture accruals under any schedule described in para-
graph (1)(B)(i) shall not reduce the rate of future ac-
cruals below—
‘‘(A) a monthly benefit (payable as a single
life annuity commencing at the participant’s
normal retirement age) equal to 1 percent of the
contributions required to be made with respect to
a participant, or the equivalent standard accrual
rate for a participant or group of participants
under the collective bargaining agreements in ef-
fect as of the first day of the initial critical year,
or
‘‘(B) if lower, the accrual rate under the
plan on such first day.
The equivalent standard accrual rate shall be deter-
mined by the plan sponsor based on the standard or
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average contribution base units which the plan spon-
sor determines to be representative for active partici-
pants and such other factors as the plan sponsor de-
termines to be relevant. Nothing in this paragraph
shall be construed as limiting the ability of the plan
sponsor to prepare and provide the bargaining par-
ties with alternative schedules to the default schedule
that established lower or higher accrual and contribu-
tion rates than the rates otherwise described in this
paragraph.
‘‘(8) EMPLOYER IMPACT.—For the purposes of
this section, the plan sponsor shall consider the im-
pact of the rehabilitation plan and contribution
schedules authorized by this section on bargaining
parties with fewer than 500 employees and shall im-
plement the plan in a manner that encourages their
continued participation in the plan and minimizes
financial harm to employers and their workers.
‘‘(f) RULES FOR OPERATION OF PLAN DURING ADOP-
TION AND REHABILITATION PERIOD.—
‘‘(1) 
COMPLIANCE
WITH
REHABILITATION
PLAN.—
‘‘(A) IN
GENERAL.—A plan may not be
amended after the date of the adoption of a reha-
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bilitation plan under subsection (e) so as to be
inconsistent with the rehabilitation plan.
‘‘(B) SPECIAL
RULES
FOR
BENEFIT
IN-
CREASES.—A plan may not be amended after the
date of the adoption of a rehabilitation plan
under subsection (e) so as to increase benefits,
including future benefit accruals, unless the plan
actuary certifies that such increase is paid for
out of additional contributions not contemplated
by the rehabilitation plan, and, after taking into
account the benefit increase, the multiemployer
plan still is reasonably expected to emerge from
critical status by the end of the rehabilitation pe-
riod on the schedule contemplated in the reha-
bilitation plan.
‘‘(2) RESTRICTION ON LUMP SUMS AND SIMILAR
BENEFITS.—
‘‘(A) IN GENERAL.—Effective on the date
the notice of certification of the plan’s critical
status for the initial critical year under sub-
section (b)(3)(D) is sent, and notwithstanding
section 204(g), the plan shall not pay—
‘‘(i) any payment, in excess of the
monthly amount paid under a single life
annuity (plus any social security supple-
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ments described in the last sentence of sec-
tion 204(b)(1)(G)),
‘‘(ii) any payment for the purchase of
an irrevocable commitment from an insurer
to pay benefits, and
‘‘(iii) any other payment specified by
the Secretary of the Treasury by regula-
tions.
‘‘(B) EXCEPTION.—Subparagraph (A) shall
not apply to a benefit which under section 203(e)
may be immediately distributed without the con-
sent of the participant or to any makeup pay-
ment in the case of a retroactive annuity start-
ing date or any similar payment of benefits
owed with respect to a prior period.
‘‘(3) ADJUSTMENTS
DISREGARDED
IN
WITH-
DRAWAL LIABILITY DETERMINATION.—Any benefit re-
ductions under this subsection shall be disregarded in
determining a plan’s unfunded vested benefits for
purposes of determining an employer’s withdrawal li-
ability under section 4201.
‘‘(4) SPECIAL RULES FOR PLAN ADOPTION PE-
RIOD.—During the rehabilitation plan adoption
period—
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‘‘(A) the plan sponsor may not accept a col-
lective bargaining agreement or participation
agreement with respect to the multiemployer
plan that provides for—
‘‘(i) a reduction in the level of con-
tributions for any participants,
‘‘(ii) a suspension of contributions
with respect to any period of service, or
‘‘(iii) any new direct or indirect exclu-
sion of younger or newly hired employees
from plan participation, and
‘‘(B) no amendment of the plan which in-
creases the liabilities of the plan by reason of
any increase in benefits, any change in the ac-
crual of benefits, or any change in the rate at
which benefits become nonforfeitable under the
plan may be adopted unless the amendment is
required as a condition of qualification under
part I of subchapter D of chapter 1 of the Inter-
nal Revenue Code of 1986 or to comply with
other applicable law.
‘‘(5) FAILURE TO MEET REQUIREMENTS.—
‘‘(A) IN
GENERAL.—Notwithstanding sec-
tion 4971(g) of the Internal Revenue Code of
1986, if a plan—
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‘‘(i) fails to meet the requirements of
subsection (e) by the end of the rehabilita-
tion period, or
‘‘(ii) has received a certification under
subsection (b)(3)(A)(ii) for 3 consecutive
plan years that the plan is not making the
scheduled progress in meeting its require-
ments under the rehabilitation plan,
the plan shall be treated as having an accumu-
lated funding deficiency for purposes of section
4971 of such Code for the last plan year in such
period (and each succeeding plan year until such
requirements are met) in an amount equal to the
greater of the amount of the contributions nec-
essary to meet such requirements or the amount
of such accumulated funding deficiency without
regard to this paragraph.
‘‘(B) WAIVER.—In the case of a failure de-
scribed in subparagraph (A) which is due to rea-
sonable cause and not to willful neglect, the Sec-
retary of the Treasury may waive part or all of
the tax imposed by section 4971 of such Code to
the extent that the payment of such tax would be
excessive or otherwise inequitable relative to the
failure involved.
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‘‘(g) EXPEDITED RESOLUTION OF PLAN SPONSOR DE-
CISIONS.—If, within 60 days of the due date for adoption
of a funding improvement plan under subsection (c) or a
rehabilitation plan under subsection (e), the plan sponsor
of a plan in endangered status or a plan in critical status
has not agreed on a funding improvement plan or rehabili-
tation plan, then any member of the board or group that
constitutes the plan sponsor may require that the plan
sponsor enter into an expedited dispute resolution procedure
for the development and adoption of a funding improvement
plan or rehabilitation plan.
‘‘(h) NONBARGAINED PARTICIPATION.—
‘‘(1) BOTH BARGAINED AND NONBARGAINED EM-
PLOYEE-PARTICIPANTS.—In the case of an employer
that contributes to a multiemployer plan with respect
to both employees who are covered by one or more col-
lective bargaining agreements and to employees who
are not so covered, if the plan is in endangered status
or in critical status, benefits of and contributions for
the nonbargained employees, including surcharges on
those contributions, shall be determined as if those
nonbargained employees were covered under the first
to expire of the employer’s collective bargaining agree-
ments in effect when the plan entered endangered or
critical status.
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‘‘(2) NONBARGAINED EMPLOYEES ONLY.—In the
case of an employer that contributes to a multiem-
ployer plan only with respect to employees who are
not covered by a collective bargaining agreement, this
section shall be applied as if the employer were the
bargaining parties, and its participation agreement
with the plan was a collective bargaining agreement
with a term ending on the first day of the plan year
beginning after the employer is provided the schedule
or schedules described in subsections (c) and (e).
‘‘(3) EMPLOYEES
COVERED
BY
A
COLLECTIVE
BARGAINING AGREEMENT.—The determination as to
whether an employee covered by a collective bar-
gaining agreement for purposes of this section shall be
made without regard to the special rule in Treasury
Regulation section 1.410(b)–6(d)(ii)(D).
‘‘(i) DEFINITIONS; ACTUARIAL METHOD.—For pur-
poses of this section—
‘‘(1) BARGAINING PARTY.—The term ‘bargaining
party’ means—
‘‘(A)(i) except as provided in clause (ii), an
employer who has an obligation to contribute
under the plan; or
‘‘(ii) in the case of a plan described under
section 404(c) of the Internal Revenue Code of
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1986, or a continuation of such a plan, the asso-
ciation of employers that is the employee settlor
of the plan; and
‘‘(B) an employee organization which, for
purposes of collective bargaining, represents plan
participants employed by an employer who has
an obligation to contribute under the plan.
‘‘(2) FUNDED PERCENTAGE.—The term ‘funded
percentage’ 
means 
the 
percentage 
equal 
to 
a
fraction—
‘‘(A) the numerator of which is the value of
the plan’s assets, as determined under section
304(c)(2), and
‘‘(B) the denominator of which is the ac-
crued liability of the plan, determined using ac-
tuarial 
assumptions 
described 
in 
section
304(c)(3).
‘‘(3) ACCUMULATED FUNDING DEFICIENCY.—The
term ‘accumulated funding deficiency’ has the mean-
ing given such term in section 304(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.
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‘‘(5) INACTIVE PARTICIPANT.—The term ‘inactive
participant’ means, in connection with a multiem-
ployer plan, a participant, or the beneficiary or alter-
nate payee of 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 of the Treasury, such person is en-
titled to such a benefit under the plan.
‘‘(7) OBLIGATION
TO
CONTRIBUTE.—The term
‘obligation to contribute’ has the meaning given such
term under section 4212(a).
‘‘(8) 
ACTUARIAL
METHOD.—Notwithstanding
any other provision of this section, the actuary’s de-
terminations with respect to a plan’s normal cost, ac-
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tuarial accrued liability, and improvements in a
plan’s funded percentage under this section shall be
based upon the unit credit funding method (whether
or not that method is used for the plan’s actuarial
valuation).
‘‘(9) PLAN SPONSOR.—In the case of a plan de-
scribed under section 404(c) of the Internal Revenue
Code of 1986, or a continuation of such a plan, the
term ‘plan sponsor’ means the bargaining parties de-
scribed under paragraph (1).’’.
(b) CAUSE
OF ACTION TO COMPEL ADOPTION
OF
FUNDING IMPROVEMENT OR REHABILITATION PLAN.—Sec-
tion 502(a) of the Employee Retirement Income Security
Act of 1974 is amended by striking ‘‘or’’ at the end of para-
graph (8), by striking the period at the end of paragraph
(9) and inserting ‘‘; or’’ and by adding at the end the fol-
lowing:
‘‘(10) in the case of a multiemployer plan that
has been certified by the actuary to be in endangered
or critical status under section 305, if the plan spon-
sor has not adopted a funding improvement or reha-
bilitation plan under subsection (c) or (e) of that sec-
tion by the deadline established in that section, by an
employer that has an obligation to contribute with re-
spect to the multiemployer plan or an employee orga-
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nization that represents active participants in the
multiemployer plan, for an order compelling the plan
sponsor to adopt a funding improvement or rehabili-
tation plan.’’.
(c) 4971 EXCISE TAX INAPPLICABLE.—Section 4971
of the Internal Revenue Code of 1986 is amended by redesig-
nating subsection (g) as subsection (h), and inserting after
subsection (f) the following:
‘‘(g) MULTIEMPLOYER PLANS IN CRITICAL STATUS.—
No tax shall be imposed under this section for a taxable
year with respect to a multiemployer plan if, for the plan
years ending with or within the taxable year, the plan is
in critical status pursuant to section 305 of the Employee
Retirement Income Security Act of 1974. This subsection
shall only apply if the plan adopts a rehabilitation plan
in accordance with section 305(e) of such Act and complies
with such rehabilitation plan (and any modifications of the
plan) and shall not apply if an excise tax is required to
be imposed under this section by reason of a violation of
such section 305.’’.
(d) NO ADDITIONAL CONTRIBUTIONS REQUIRED.—
(1) Section 302(b) of the Employee Retirement
Income Security Act of 1974, as amended by this Act,
is amended by adding at the end the following new
paragraph:
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‘‘(3) MULTIEMPLOYER PLANS IN CRITICAL STA-
TUS.—Subparagraph (A) shall not apply in the case
of a multiemployer plan for any plan year in which
the plan is in critical status pursuant to section 305.
This paragraph shall only apply if the plan adopts
a rehabilitation plan in accordance with section
305(e) and complies with such rehabilitation plan
(and any modifications of the plan).’’.
(2) Section 412(c) of the Internal Revenue Code
of 1986, as amended by this Act, is amended by add-
ing at the end the following new paragraph:
‘‘(3) MULTIEMPLOYER PLANS IN CRITICAL STA-
TUS.—Subparagraph (A) shall not apply in the case
of a multiemployer plan for any plan year in which
the plan is in critical status pursuant to section 305
of the Employee Retirement Income Security Act of
1974. This paragraph shall only apply if the plan
adopts a rehabilitation plan in accordance with sec-
tion 305(e) of such Act and complies with such reha-
bilitation plan (and any modifications of the plan).’’.
(e) CONFORMING AMENDMENT.—The table of contents
in section 1 of such Act (as amended by the preceding provi-
sions of this Act) is amended by inserting after the item
relating to section 304 the following new item:
‘‘Sec. 305. Additional funding rules for multiemployer plans in endangered status
or critical status.’’.
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(f) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendment made by this
section shall apply with respect to plan years begin-
ning after 2006.
(2) SPECIAL RULE FOR CERTAIN RESTORED BEN-
EFITS.—In the case of a multiemployer plan—
(A) with respect to which benefits were re-
duced pursuant to a plan amendment adopted
on or after January 1, 2002, and before June 30,
2005, and
(B) which, pursuant to the plan document,
the trust agreement, or a formal written commu-
nication from the plan sponsor to participants
provided before June 30, 2005, provided for the
restoration of such benefits,
the amendments made by this section shall not apply
to such benefit restorations to the extent that any re-
striction on the providing or accrual of such benefits
would otherwise apply by reason of such amendments.
SEC. 203. MEASURES TO FORESTALL INSOLVENCY OF MUL-
TIEMPLOYER PLANS.
(a) ADVANCE DETERMINATION OF IMPENDING INSOL-
VENCY OVER 5 YEARS.—Section 4245(d)(1) of the Em-
ployee Retirement Income Security Act of 1974 (29 U.S.C.
1426(d)(1)) is amended—
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(1) by striking ‘‘3 plan years’’ the second place
it appears and inserting ‘‘5 plan years’’; and
(2) by adding at the end the following new sen-
tence: ‘‘If the plan sponsor makes such a determina-
tion that the plan will be insolvent in any of the next
5 plan years, the plan sponsor shall make the com-
parison under this paragraph at least annually until
the plan sponsor makes a determination that the plan
will not be insolvent in any of the next 5 plan
years.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to determinations made in
plan years beginning after 2006.
SEC. 204. SPECIAL RULE FOR CERTAIN BENEFITS FUNDED
UNDER AN AGREEMENT APPROVED BY THE
PENSION BENEFIT GUARANTY CORPORATION.
In the case of a multiemployer plan that is a party
to an agreement that was approved by the Pension Benefit
Guaranty Corporation prior to June 30, 2005, and that—
(1) increases benefits, and
(2) provides for special withdrawal liability
rules under section 4203(f) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1383),
the amendments made by sections 201, 202, 211, and 212
of this Act shall not apply to the benefit increases under
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any plan amendment adopted prior to June 30, 2005, that
are funded pursuant to such agreement if the plan is funded
in compliance with such agreement (and any amendments
thereto).
SEC. 205. WITHDRAWAL LIABILITY REFORMS.
(a) REPEAL OF LIMITATION ON WITHDRAWAL LIABIL-
ITY OF INSOLVENT EMPLOYERS.—
(1) IN GENERAL.—Subsections (b) and (d) of sec-
tion 4225 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1405) are repealed.
(2) CONFORMING AMENDMENTS.—Subsections (c)
and (e) of section 4225 of such Act are redesignated
as subsections (b) and (c), respectively.
(3) EFFECTIVE DATE.—The amendments made
by this section shall apply with respect to sales occur-
ring on or after January 1, 2006.
(b) WITHDRAWAL LIABILITY CONTINUES
IF WORK
CONTRACTED OUT.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section
4205(b)(2)(A) of such Act (29 U.S.C. 1385(b)(2)(A))
is amended by inserting ‘‘or to an entity or entities
owned or controlled by the employer’’ after ‘‘to an-
other location’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply with respect to work trans-
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ferred on or after the date of the enactment of this
Act.
(c) APPLICATION OF FORGIVENESS RULE TO PLANS
PRIMARILY COVERING EMPLOYEES IN THE BUILDING AND
CONSTRUCTION.—
(1) IN GENERAL.—Section 4210(b) of such Act
(29 U.S.C. 1390(b)) is amended—
(A) by striking paragraph (1); and
(B) 
by 
redesignating 
paragraphs 
(2)
through (4) as paragraphs (1) through (3), re-
spectively.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to plan
withdrawals occurring on or after January 1, 2006.
PART II—AMENDMENTS TO INTERNAL REVENUE
CODE OF 1986
SEC. 211. FUNDING RULES FOR MULTIEMPLOYER DEFINED
BENEFIT PLANS.
(a) IN GENERAL.—Subpart A of part III of subchapter
D of chapter 1 of the Internal Revenue Code of 1986 (as
added by this Act) is amended by inserting after section
430 the following new section:
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‘‘SEC. 431. MINIMUM FUNDING STANDARDS FOR MULTIEM-
PLOYER PLANS.
‘‘(a) IN GENERAL.—For purposes of section 412, 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
years (beginning with the first plan year for which
this part applies to the plan) over the total credits to
such account for such years, and
‘‘(2) if the multiemployer plan is in reorganiza-
tion for any plan year, the accumulated funding defi-
ciency of the plan determined under section 4243 of
the Employee Retirement Income Security Act of
1974.
‘‘(b) FUNDING STANDARD ACCOUNT.—
‘‘(1) ACCOUNT REQUIRED.—Each multiemployer
plan to which this part applies shall establish and
maintain a funding standard account. Such account
shall be credited and charged solely as provided in
this section.
‘‘(2) CHARGES TO ACCOUNT.—For a plan year,
the funding standard account shall be charged with
the sum of—