303
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
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.—
305
‘‘(A) IN GENERAL.—In the case of a multi-
employer plan to which section 432(c) applies, 
there is hereby imposed a tax on each failure to 
make a required contribution under the reha-
bilitation plan within the time required under 
such plan. 
‘‘(B) AMOUNT OF TAX.—The amount of 
the tax imposed by subparagraph (A) shall be, 
with respect to each required contribution 
under the rehabilitation plan, the amount equal 
to the excess of the amount of such required 
contribution over the amount contributed. 
‘‘(C) LIABILITY
FOR
TAX.—The tax im-
posed by subparagraph (A) shall be paid by the 
employer responsible for contributing to or 
under the rehabilitation plan which fails to 
make the contribution. 
‘‘(4) REHABILITATION PLAN.—For purposes of 
this subsection, the term ‘rehabilitation plan’ means 
the plan required to be adopted under section 
432(c).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part III of subchapter D of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item:
306
‘‘Sec. 432. Additional funding rules for multiemployer plans in endangered sta-
tus or critical status.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after December 31, 2005. 
(e) SPECIAL RULE FOR 2006.—In the case of any 
plan year beginning in 2006, any reference in section 432 
of the Internal Revenue Code of 1986 (as added by this 
section) to section 431 of such Code (as added by this 
Act) shall be treated as a reference to the corresponding 
provision of such Code as in effect for plan years begin-
ning in such year. 
SEC. 213. MEASURES TO FORESTALL INSOLVENCY OF MUL-
TIEMPLOYER PLANS. 
(a) ADVANCE DETERMINATION OF IMPENDING IN-
SOLVENCY OVER 5 YEARS.—Section 418E(d)(1) of the 
Internal Revenue Code of 1986 is amended—
(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