195
‘‘(2) TREATMENT OF AFFECTED BENEFITS.—
Nothing in this subsection shall be construed as af-
fecting the plan’s treatment of benefits which would 
have been paid or accrued but for this section. 
‘‘(j) TERMS RELATING TO FUNDING TARGET AT-
TAINMENT PERCENTAGE.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘funding target 
attainment percentage’ has the same meaning given 
such term by section 430(d)(2). 
‘‘(2) ADJUSTED FUNDING TARGET ATTAINMENT 
PERCENTAGE.—The term ‘adjusted funding target 
attainment percentage’ means the funding target at-
tainment percentage which is determined under 
paragraph (1) by increasing each of the amounts 
under subparagraphs (A) and (B) of section 
430(d)(2) by the aggregate amount of purchases of 
annuities for employees other than highly com-
pensated employees (as defined in section 414(q)) 
which were made by the plan during the preceding 
2 plan years. 
‘‘(3) APPLICATION
TO
PLANS
WHICH
ARE 
FULLY FUNDED WITHOUT REGARD TO REDUCTIONS 
FOR FUNDING BALANCES.—
‘‘(A) IN GENERAL.—In the case of a plan 
for any plan year, if the funding target attain-
196
ment percentage is 100 percent or more (deter-
mined without regard to this paragraph and 
without regard to the reduction in the value of 
assets under section 430(f)(4)(A)), the funding 
target attainment percentage for purposes of 
paragraph (1) shall be determined without re-
gard to such reduction. 
‘‘(B) TRANSITION
RULE.—Subparagraph 
(A) shall be applied to plan years beginning 
after 2007 and before 2011 by substituting for 
‘100 percent’ the applicable percentage deter-
mined in accordance with the following table:
‘‘In the case of a plan year 
The applicable 
beginning in calendar year: 
percentage is 
2008 ...................................................................................................
2009 ...................................................................................................
2010 ...................................................................................................
96.
‘‘(C) 
LIMITATION.—Subparagraph 
(B) 
shall not apply with respect to any plan year 
after 2008 unless the funding target attainment 
percentage (determined without regard to this 
paragraph) of the plan for each preceding plan 
year after 2007 was not less than the applicable 
percentage with respect to such preceding plan 
year determined under subparagraph (B). 
‘‘(k) SPECIAL RULE FOR 2008.—For purposes of this 
section, in the case of plan years beginning in 2008, the 
funding target attainment percentage for the preceding
197
plan year may be determined using such methods of esti-
mation as the Secretary may provide.’’. 
(2) CLERICAL
AMENDMENT.—The table of 
parts for subchapter D of chapter 1 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new item:
‘‘PART III—RULES RELATING TO MINIMUM FUNDING STANDARDS AND 
BENEFIT LIMITATIONS’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2007. 
(2) 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 January 1, 2008, the amendments made by this 
section shall not apply to plan years beginning be-
fore the earlier of—
(A) the later of—
(i) the date on which the last collec-
tive bargaining agreement relating to the 
plan terminates (determined without re-
gard to any extension thereof agreed to 
after the date of the enactment of this 
Act), or
198
(ii) the first day of the first plan year 
to which the amendments made by this 
subsection would (but for this subpara-
graph) apply, or 
(B) January 1, 2010. 
For purposes of subparagraph (A)(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 section shall not be treated as a termination of 
such collective bargaining agreement. 
SEC. 114. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) AMENDMENTS RELATED TO QUALIFICATION RE-
QUIREMENTS.—
(1) Section 401(a)(29) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(29) BENEFIT LIMITATIONS ON PLANS IN AT-
RISK STATUS.—In the case of a defined benefit plan 
(other than a multiemployer plan) to which the re-
quirements of section 412 apply, the trust of which 
the plan is a part shall not constitute a qualified 
trust under this subsection unless the plan meets the 
requirements of section 436.’’. 
(2) Section 401(a)(32) of such Code is amend-
ed—
199
(A) in subparagraph (A), by striking 
‘‘412(m)(5)’’ each place it appears and insert-
ing ‘‘section 430(j)(4)’’, and 
(B) in subparagraph (C), by striking ‘‘sec-
tion 412(m)’’ and inserting ‘‘section 430(j)’’. 
(3) Section 401(a)(33) of such Code is amend-
ed—
(A) in subparagraph (B)(i), by striking 
‘‘funded current liability percentage (within the 
meaning of section 412(l)(8))’’ and inserting 
‘‘funding target attainment percentage (as de-
fined in section 430(d)(2))’’, 
(B) in subparagraph (B)(iii), by striking 
‘‘subsection 412(c)(8)’’ and inserting ‘‘section 
412(c)(2)’’, and 
(C) in subparagraph (D), by striking ‘‘sec-
tion 412(c)(11) (without regard to subpara-
graph (B) thereof)’’ and inserting ‘‘section 
412(b)(2) (without regard to subparagraph (B) 
thereof)’’. 
(b) VESTING RULES.—Section 411 of such Code is 
amended—
(1) by striking ‘‘section 412(c)(8)’’ in sub-
section (a)(3)(C) and inserting ‘‘section 412(c)(2)’’, 
(2) in subsection (b)(1)(F)—
200
(A) by striking ‘‘paragraphs (2) and (3) of 
section 412(i)’’ in clause (ii) and inserting 
‘‘subparagraphs 
(B) 
and 
(C) 
of 
section 
412(e)(3)’’, and 
(B) by striking ‘‘paragraphs (4), (5), and 
(6) of section 412(i)’’ and inserting ‘‘subpara-
graphs (D), (E), and (F) of section 412(e)(3)’’, 
and 
(3) by striking ‘‘section 412(c)(8)’’ in sub-
section (d)(6)(A) and inserting ‘‘section 412(e)(2)’’. 
(c) MERGERS AND CONSOLIDATIONS OF PLANS.—
Subclause (I) of section 414(l)(2)(B)(i) of such Code is 
amended to read as follows: 
‘‘(I) 
the 
amount 
determined 
under section 431(c)(6)(A)(i) in the 
case of a multiemployer plan (and the 
sum of the funding shortfall and tar-
get normal cost determined under sec-
tion 430 in the case of any other 
plan), over’’. 
(d) TRANSFER OF EXCESS PENSION ASSETS TO RE-
TIREE HEALTH ACCOUNTS.—
(1) Section 420(e)(2) of such Code is amended 
to read as follows:
201
‘‘(2) EXCESS PENSION ASSETS.—The term ‘ex-
cess pension assets’ means the excess (if any) of—
‘‘(A) the lesser of—
‘‘(i) the fair market value of the 
plan’s assets (reduced by the prefunding 
balance and funding standard carryover 
balance determined under section 430(f)), 
or 
‘‘(ii) the value of plan assets as deter-
mined under section 430(g)(3) after reduc-
tion under section 430(f), over 
‘‘(B) 125 percent of the sum of the fund-
ing shortfall and the target normal cost deter-
mined under section 430 for such plan year.’’. 
(2) Section 420(e)(4) of such Code is amended 
to read as follows: 
‘‘(4) COORDINATION
WITH
SECTION 430.—In 
the case of a qualified transfer, any assets so trans-
ferred shall not, for purposes of this section and sec-
tion 430, be treated as assets in the plan.’’. 
(e) EXCISE TAXES.—
(1) IN GENERAL.—Subsections (a) and (b) of 
section 4971 of such Code are amended to read as 
follows:
202
‘‘(a) INITIAL TAX.—If at any time during any taxable 
year an employer maintains a plan to which section 412 
applies, there is hereby imposed for the taxable year a tax 
equal to—
‘‘(1) in the case of a single-employer plan, 10 
percent of the aggregate unpaid minimum required 
contributions for all plan years remaining unpaid as 
of the end of any plan year ending with or within 
the taxable year, and 
‘‘(2) in the case of a multiemployer plan, 5 per-
cent of the accumulated funding deficiency deter-
mined under section 431 as of the end of any plan 
year ending with or within the taxable year. 
‘‘(b) ADDITIONAL TAX.—If—
‘‘(1) a tax is imposed under subsection (a)(1) 
on any unpaid required minimum contribution and 
such amount remains unpaid as of the close of the 
taxable period, or 
‘‘(2) a tax is imposed under subsection (a)(2) 
on any accumulated funding deficiency and the accu-
mulated funding deficiency is not corrected within 
the taxable period, 
there is hereby imposed a tax equal to 100 percent of the 
unpaid minimum required contribution or accumulated
203
funding deficiency, whichever is applicable, to the extent 
not so paid or corrected.’’. 
(2) Section 4971(c) of such Code is amended—
(A) by striking ‘‘the last two sentences of 
section 412(a)’’ in paragraph (1) and inserting 
‘‘section 431’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) UNPAID MINIMUM REQUIRED CONTRIBU-
TION.—
‘‘(A) IN
GENERAL.—The term ‘unpaid 
minimum required contribution’ means, with re-
spect to any plan year, any minimum required 
contribution under section 430 for the plan 
year which is not paid on or before the due date 
(as determined under section 430(j)(1)) for the 
plan year. 
‘‘(B) ORDERING RULE.—Any payment to 
or under a plan for any plan year shall be allo-
cated first to unpaid minimum required con-
tributions for all preceding plan years on a 
first-in, first-out basis and then to the min-
imum required contribution under section 430 
for the plan year.’’.
204
(3) Section 4971(e)(1) of such Code is amended 
by striking ‘‘section 412(b)(3)(A)’’ and inserting 
‘‘section 412(a)(1)(A)’’. 
(4) Section 4971(f)(1) of such Code is amend-
ed—
(A) by striking ‘‘section 412(m)(5)’’ and 
inserting ‘‘section 430(j)(4)’’, and 
(B) by striking ‘‘section 412(m)’’ and in-
serting ‘‘section 430(j)’’. 
(5) Section 4972(c)(7) of such Code is amended 
by striking ‘‘except to the extent that such contribu-
tions exceed the full-funding limitation (as defined in 
section 412(c)(7), determined without regard to sub-
paragraph (A)(i)(I) thereof)’’ and inserting ‘‘except, 
in the case of a multiemployer plan, to the extent 
that such contributions exceed the full-funding limi-
tation (as defined in section 431(c)(6))’’. 
(f) REPORTING REQUIREMENTS.—Section 6059(b) of 
such Code is amended—
(1) by striking ‘‘the accumulated funding defi-
ciency (as defined in section 412(a))’’ in paragraph 
(2) and inserting ‘‘the minimum required contribu-
tion determined under section 430, or the accumu-
lated funding deficiency determined under section 
431,’’, and
205
(2) by striking paragraph (3)(B) and inserting: 
‘‘(B) the requirements for reasonable actu-
arial assumptions under section 430(h)(1) or 
431(c)(3), whichever are applicable, have been 
complied with.’’. 
SEC. 115. 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 December 31, 2007. 
(b) MODIFIED RULES.—The rules described in this 
subsection are as follows: 
(1) For purposes of section 430(j)(3) of the In-
ternal Revenue Code of 1986 and section 303(j)(3) 
of the Employee Retirement Income Security Act of
206
1974, the plan shall be treated as not having a fund-
ing 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) Section 430(c)(5)(B) of such Code and sec-
tion 303(c)(5)(B) of such Act (relating to phase-in 
of funding target for exemption from new shortfall 
amortization base) shall each be applied by sub-
stituting ‘‘2012’’ for ‘‘2011’’ therein and by sub-
stituting for the table therein the following:
In the case of a plan year beginning in calendar 
year: 
The appli-
cable per-
centage is: 
2008 ..............................................................................................
90 percent
2009 ..............................................................................................
92 percent
2010 ..............................................................................................
94 percent
2011 ..............................................................................................
96 percent. 
(c) DEFINITIONS.—Any term used in this section 
which is also used in section 430 of such Code or section 
303 of such Act shall have the meaning provided such 
term in such section. If the same term has a different
207
meaning in such Code and such Act, such term shall, for 
purposes of this section, have the meaning provided by 
such Code when applied with respect to such Code and 
the meaning provided by such Act when applied with re-
spect to such Act. 
(d) SPECIAL RULE FOR 2006 AND 2007.—
(1) IN GENERAL.—Section 769(c)(3) of the Re-
tirement Protection Act of 1994, as added by section 
201 of the Pension Funding Equity Act of 2004, is 
amended by striking ‘‘and 2005’’ and inserting ‘‘, 
2005, 2006, and 2007’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to plan years beginning 
after December 31, 2005. 
(e) CONFORMING AMENDMENT.—
(1) Section 769 of the Retirement Protection 
Act of 1994 is amended by striking subsection (c). 
(2) The amendment made by paragraph (1) 
shall take effect on December 31, 2007, and shall 
apply to plan years beginning after such date.
208
SEC. 116. RESTRICTIONS ON FUNDING OF NONQUALIFIED 
DEFERRED COMPENSATION PLANS BY EM-
PLOYERS MAINTAINING UNDERFUNDED OR 
TERMINATED SINGLE-EMPLOYER PLANS. 
(a) AMENDMENTS OF INTERNAL REVENUE CODE.—
Subsection (b) of section 409A of the Internal Revenue 
Code of 1986 (providing rules relating to funding) is 
amended by redesignating paragraphs (3) and (4) as para-
graphs (4) and (5), respectively, and by inserting after 
paragraph (2) the following new paragraph: 
‘‘(3) TREATMENT
OF
EMPLOYER’S
DEFINED 
BENEFIT PLAN DURING RESTRICTED PERIOD.—
‘‘(A) IN GENERAL.—If–
‘‘(i) during any restricted period with 
respect to a single-employer defined benefit 
plan, assets are set aside or reserved (di-
rectly or indirectly) in a trust (or other ar-
rangement as determined by the Secretary) 
or transferred to such a trust or other ar-
rangement for purposes of paying deferred 
compensation of an applicable covered em-
ployee under a nonqualified deferred com-
pensation plan of the plan sponsor or 
member of a controlled group which in-
cludes the plan sponsor, or
209
‘‘(ii) a nonqualified deferred com-
pensation plan of the plan sponsor or 
member of a controlled group which in-
cludes the plan sponsor provides that as-
sets will become restricted to the provision 
of benefits under the plan in connection 
with such restricted period (or other simi-
lar financial measure determined by the 
Secretary) with respect to the defined ben-
efit plan, or assets are so restricted, 
such assets shall, for purposes of section 83, be 
treated as property transferred in connection 
with the performance of services whether or not 
such assets are available to satisfy claims of 
general creditors. Clause (i) shall not apply with 
respect to any assets which are so set aside be-
fore the restricted period with respect to the de-
fined benefit plan. 
‘‘(B) RESTRICTED PERIOD.—For purposes 
of this section, the term ‘restricted period’ 
means, with respect to any plan described in 
subparagraph (A)—
‘‘(i) any period during which the plan 
is in at-risk status (as defined in section 
430(i));
210
‘‘(ii) any period the plan sponsor is a 
debtor in a case under title 11, United 
States Code, or similar Federal or State 
law, and 
‘‘(iii) the 12-month period beginning 
on the date which is 6 months before the 
termination date of the plan if, as of the 
termination date, the plan is not sufficient 
for benefit liabilities (within the meaning 
of section 4041 of the Employee Retire-
ment Income Security Act of 1974). 
‘‘(C) SPECIAL
RULE
FOR
PAYMENT
OF 
TAXES
ON
DEFERRED
COMPENSATION
IN-
CLUDED IN INCOME.—If an employer provides 
directly or indirectly for the payment of any 
Federal, State, or local income taxes with re-
spect to any compensation required to be in-
cluded in gross income by reason of this para-
graph—
‘‘(i) interest shall be imposed under 
subsection (a)(1)(B)(i)(I) on the amount of 
such payment in the same manner as if 
such payment was part of the deferred 
compensation to which it relates,
211
‘‘(ii) such payment shall be taken into 
account in determining the amount of the 
additional 
tax 
under 
subsection 
(a)(1)(B)(i)(II) in the same manner as if 
such payment was part of the deferred 
compensation to which it relates, and 
‘‘(iii) no deduction shall be allowed 
under this title with respect to such pay-
ment. 
‘‘(D) OTHER DEFINITIONS.—For purposes 
of this section—
‘‘(i) 
APPLICABLE
COVERED
EM-
PLOYEE.—The term ‘applicable covered 
employee’ means any—
‘‘(I) covered employee of a plan 
sponsor, 
‘‘(II) covered employee of a mem-
ber of a controlled group which in-
cludes the plan sponsor, and 
‘‘(III) former employee who was 
a covered employee at the time of ter-
mination of employment with the plan 
sponsor or a member of a controlled 
group which includes the plan spon-
sor.
212
‘‘(ii) COVERED EMPLOYEE.—The term 
‘covered employee’ means an individual de-
scribed in section 162(m)(3) or an indi-
vidual subject to the requirements of sec-
tion 16(a) of the Securities Exchange Act 
of 1934.’’. 
(b) CONFORMING AMENDMENTS.—Paragraphs (4) 
and (5) of section 409A(b) of such Code, as redesignated 
by subsection (a) of this subsection, are each amended by 
striking ‘‘paragraph (1) or (2)’’ each place it appears and 
inserting ‘‘paragraph (1), (2), or (3)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers or other reservation 
of assets after the date of the enactment of this Act. 
TITLE II—FUNDING RULES FOR 
MULTIEMPLOYER 
DEFINED 
BENEFIT 
PLANS 
AND 
RE-
LATED PROVISIONS 
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
213
amended by this Act) is amended by inserting after section 
303 the following new section: 
‘‘MINIMUM FUNDING STANDARDS FOR MULTIEMPLOYER 
PLANS 
‘‘SEC. 304. (a) IN GENERAL.—For purposes of sec-
tion 302, the accumulated funding deficiency of a multi-
employer 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 de-
ficiency of the plan determined under section 4243. 
‘‘(b) FUNDING STANDARD ACCOUNT.—
‘‘(1) ACCOUNT
REQUIRED.—Each multiem-
ployer plan to which this part applies shall establish 
and maintain a funding standard account. Such ac-
count shall be credited and charged solely as pro-
vided in this section. 
‘‘(2) CHARGES TO ACCOUNT.—For a plan year, 
the funding standard account shall be charged with 
the sum of—
214
‘‘(A) the normal cost of the plan for the 
plan year, 
‘‘(B) the amounts necessary to amortize in 
equal annual installments (until fully amor-
tized)—
‘‘(i) in the case of a plan which comes 
into existence on or after January 1, 2008, 
the unfunded past service liability under 
the plan on the first day of the first plan 
year to which this section applies, over a 
period of 15 plan years, 
‘‘(ii) separately, with respect to each 
plan year, the net increase (if any) in un-
funded past service liability under the plan 
arising from plan amendments adopted in 
such year, over a period of 15 plan years, 
‘‘(iii) separately, with respect to each 
plan year, the net experience loss (if any) 
under the plan, over a period of 15 plan 
years, and 
‘‘(iv) separately, with respect to each 
plan year, the net loss (if any) resulting 
from changes in actuarial assumptions 
used under the plan, over a period of 15 
plan years,
215
‘‘(C) the amount necessary to amortize 
each waived funding deficiency (within the 
meaning of section 302(c)(3)) for each prior 
plan year in equal annual installments (until 
fully amortized) over a period of 15 plan years, 
‘‘(D) the amount necessary to amortize in 
equal annual installments (until fully amor-
tized) over a period of 5 plan years any amount 
credited to the funding standard account under 
section 302(b)(3)(D) (as in effect on the day 
before the date of the enactment of the Pension 
Protection Act of 2006), and 
‘‘(E) the amount necessary to amortize in 
equal annual installments (until fully amor-
tized) over a period of 20 years the contribu-
tions which would be required to be made under 
the plan but for the provisions of section 
302(c)(7)(A)(i)(I) (as in effect on the day be-
fore the date of the enactment of the Pension 
Protection Act of 2006). 
‘‘(3) CREDITS TO ACCOUNT.—For a plan year, 
the funding standard account shall be credited with 
the sum of—
216
‘‘(A) the amount considered contributed by 
the employer to or under the plan for the plan 
year, 
‘‘(B) the amount necessary to amortize in 
equal annual installments (until fully amor-
tized)—
‘‘(i) separately, with respect to each 
plan year, the net decrease (if any) in un-
funded past service liability under the plan 
arising from plan amendments adopted in 
such year, over a period of 15 plan years, 
‘‘(ii) separately, with respect to each 
plan year, the net experience gain (if any) 
under the plan, over a period of 15 plan 
years, and 
‘‘(iii) separately, with respect to each 
plan year, the net gain (if any) resulting 
from changes in actuarial assumptions 
used under the plan, over a period of 15 
plan years, 
‘‘(C) the amount of the waived funding de-
ficiency 
(within 
the 
meaning 
of 
section 
302(c)(3)) for the plan year, and 
‘‘(D) in the case of a plan year for which 
the accumulated funding deficiency is deter-
217
mined under the funding standard account if 
such plan year follows a plan year for which 
such deficiency was determined under the alter-
native minimum funding standard under section 
305 (as in effect on the day before the date of 
the enactment of the Pension Protection Act of 
2006), the excess (if any) of any debit balance 
in the funding standard account (determined 
without regard to this subparagraph) over any 
debit balance in the alternative minimum fund-
ing standard account. 
‘‘(4) SPECIAL RULE FOR AMOUNTS FIRST AM-
ORTIZED IN PLAN YEARS BEFORE 2008.—In the case 
of any amount amortized under section 302(b) (as 
in effect on the day before the date of the enactment 
of the Pension Protection Act of 2006) over any pe-
riod beginning with a plan year beginning before 
2008, in lieu of the amortization described in para-
graphs (2)(B) and (3)(B), such amount shall con-
tinue to be amortized under such section as so in ef-
fect. 
‘‘(5) COMBINING
AND
OFFSETTING
AMOUNTS 
TO BE AMORTIZED.—Under regulations prescribed 
by the Secretary of the Treasury, amounts required
218
to be amortized under paragraph (2) or paragraph 
(3), as the case may be—
‘‘(A) may be combined into one amount 
under such paragraph to be amortized over a 
period determined on the basis of the remaining 
amortization period for all items entering into 
such combined amount, and 
‘‘(B) may be offset against amounts re-
quired to be amortized under the other such 
paragraph, with the resulting amount to be am-
ortized over a period determined on the basis of 
the remaining amortization periods for all items 
entering into whichever of the two amounts 
being offset is the greater. 
‘‘(6) INTEREST.—The funding standard ac-
count (and items therein) shall be charged or cred-
ited (as determined under regulations prescribed by 
the Secretary of the Treasury) with interest at the 
appropriate rate consistent with the rate or rates of 
interest used under the plan to determine costs. 
‘‘(7) SPECIAL RULES RELATING TO CHARGES 
AND CREDITS TO FUNDING STANDARD ACCOUNT.—
For purposes of this part—
‘‘(A) 
WITHDRAWAL
LIABILITY.—Any 
amount received by a multiemployer plan in
219
payment of all or part of an employer’s with-
drawal liability under part 1 of subtitle E of 
title IV shall be considered an amount contrib-
uted by the employer to or under the plan. The 
Secretary of the Treasury may prescribe by reg-
ulation additional charges and credits to a mul-
tiemployer plan’s funding standard account to 
the extent necessary to prevent withdrawal li-
ability payments from being unduly reflected as 
advance funding for plan liabilities. 
‘‘(B) ADJUSTMENTS
WHEN
A
MULTIEM-
PLOYER PLAN LEAVES REORGANIZATION.—If a 
multiemployer plan is not in reorganization in 
the plan year but was in reorganization in the 
immediately preceding plan year, any balance in 
the funding standard account at the close of 
such immediately preceding plan year—
‘‘(i) shall be eliminated by an offset-
ting credit or charge (as the case may be), 
but 
‘‘(ii) shall be taken into account in 
subsequent plan years by being amortized 
in equal annual installments (until fully 
amortized) over 30 plan years.
220
The preceding sentence shall not apply to the 
extent of any accumulated funding deficiency 
under section 4243(a) as of the end of the last 
plan year that the plan was in reorganization. 
‘‘(C) PLAN PAYMENTS TO SUPPLEMENTAL 
PROGRAM OR WITHDRAWAL LIABILITY PAYMENT 
FUND.—Any amount paid by a plan during a 
plan year to the Pension Benefit Guaranty Cor-
poration pursuant to section 4222 of this Act or 
to a fund exempt under section 501(c)(22) of 
the Internal Revenue Code of 1986 pursuant to 
section 4223 of this Act shall reduce the 
amount of contributions considered received by 
the plan for the plan year. 
‘‘(D) INTERIM
WITHDRAWAL
LIABILITY 
PAYMENTS.—Any amount paid by an employer 
pending a final determination of the employer’s 
withdrawal liability under part 1 of subtitle E 
of title IV and subsequently refunded to the 
employer by the plan shall be charged to the 
funding standard account in accordance with 
regulations prescribed by the Secretary of the 
Treasury. 
‘‘(E) 
ELECTION
FOR
DEFERRAL
OF 
CHARGE
FOR
PORTION
OF
NET
EXPERIENCE