‘‘(3) AUTHORIZATION
OF
USE
OF
ACTUARIAL 
VALUE.—For purposes of this section, the value of 
plan assets shall be determined on the basis of any 
reasonable actuarial method of valuation which takes 
into account fair market value and which is per-
mitted under regulations prescribed by the Secretary 
of the Treasury, except that— 
‘‘(A) any such method providing for aver-
aging of fair market values may not provide for 
averaging of such values over more than the 3 
most recent plan years (including the current 
plan year), and 
‘‘(B) any such method may not result in a 
determination of the value of plan assets which, 
at any time, is lower than 90 percent or greater 
than 110 percent of the fair market value of such 
assets at such time. 
‘‘(4) 
ACCOUNTING
FOR
CONTRIBUTION
RE-
CEIPTS.—For purposes of this section— 
‘‘(A) CONTRIBUTIONS
FOR
PRIOR
PLAN 
YEARS TAKEN INTO ACCOUNT.—For purposes of 
determining the value of plan assets for any cur-
rent plan year, in any case in which a contribu-
tion properly allocable to amounts owed for a 
preceding plan year is made on or after the
valuation date of the plan for such current plan 
year, such contribution shall be taken into ac-
count, except that any such contribution made 
during any such current plan year beginning 
after 2006 shall be taken into account only in an 
amount equal to its present value (determined 
using the effective rate of interest for the plan for 
the preceding plan year) as of the valuation date 
of the plan for such current plan year. 
‘‘(B) CONTRIBUTIONS FOR CURRENT PLAN 
YEAR
DISREGARDED.—For purposes of deter-
mining the value of plan assets for any current 
plan year, contributions which are properly allo-
cable to amounts owed for such plan year shall 
not be taken into account, and, in the case of 
any such contribution made before the valuation 
date of the plan for such plan year, such value 
of plan assets shall be reduced for interest on 
such amount determined using the effective rate 
of interest of the plan for the preceding plan 
year for the period beginning when such pay-
ment was made and ending on the valuation 
date of the plan. 
‘‘(5) ACCOUNTING FOR PLAN LIABILITIES.—For 
purposes of this section—
‘‘(A) LIABILITIES
TAKEN
INTO
ACCOUNT 
FOR CURRENT PLAN YEAR.—In determining the 
value of liabilities under a plan for a plan year, 
liabilities shall be taken into account to the ex-
tent attributable to benefits (including any early 
retirement or similar benefit) accrued or earned 
as of the beginning of the plan year. 
‘‘(B) ACCRUALS
DURING
CURRENT
PLAN 
YEAR DISREGARDED.—For purposes of subpara-
graph (A), benefits accrued or earned during 
such plan year shall not be taken into account, 
irrespective of whether the valuation date of the 
plan for such plan year is later than the first 
day of such plan year. 
‘‘(h) ACTUARIAL ASSUMPTIONS AND METHODS.— 
‘‘(1) IN GENERAL.—Subject to this subsection, 
the determination of any present value or other com-
putation under this section shall be made on the basis 
of actuarial assumptions and methods— 
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations), and 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan.
‘‘(2) INTEREST RATES.— 
‘‘(A) EFFECTIVE
INTEREST
RATE.—For 
purposes of this section, the term ‘effective inter-
est rate’ means, with respect to any plan for any 
plan year, the single rate of interest which, if 
used to determine the present value of the plan’s 
liabilities referred to in subsection (d)(1), would 
result in an amount equal to the funding target 
of the plan for such plan year. 
‘‘(B) INTEREST RATES FOR DETERMINING 
FUNDING TARGET.—For purposes of determining 
the funding target of a plan for any plan year, 
the interest rate used in determining the present 
value of the liabilities of the plan shall be— 
‘‘(i) in the case of liabilities reasonably 
determined to be payable during the 5-year 
period beginning on the first day of the 
plan year, the first segment rate with re-
spect to the applicable month, 
‘‘(ii) in the case of liabilities reason-
ably determined to be payable during the 
15-year period beginning at the end of the 
period described in clause (i), the second 
segment rate with respect to the applicable 
month, and
‘‘(iii) in the case of liabilities reason-
ably determined to be payable after the pe-
riod described in clause (ii), the third seg-
ment rate with respect to the applicable 
month. 
‘‘(C) SEGMENT
RATES.—For purposes of 
this paragraph— 
‘‘(i) FIRST SEGMENT RATE.—The term 
‘first segment rate’ means, with respect to 
any month, the single rate of interest which 
shall be determined by the Secretary of the 
Treasury for such month on the basis of the 
corporate bond yield curve for such month, 
taking into account only that portion of 
such yield curve which is based on bonds 
maturing during the 5-year period com-
mencing with such month. 
‘‘(ii) SECOND
SEGMENT
RATE.—The 
term ‘second segment rate’ means, with re-
spect to any month, the single rate of inter-
est which shall be determined by the Sec-
retary of the Treasury for such month on 
the basis of the corporate bond yield curve 
for such month, taking into account only 
that portion of such yield curve which is
based on bonds maturing during the 15- 
year period beginning at the end of the pe-
riod described in clause (i). 
‘‘(iii) THIRD
SEGMENT
RATE.—The 
term ‘third segment rate’ means, with re-
spect to any month, the single rate of inter-
est which shall be determined by the Sec-
retary of the Treasury for such month on 
the basis of the corporate bond yield curve 
for such month, taking into account only 
that portion of such yield curve which is 
based on bonds maturing during periods be-
ginning after the period described in clause 
(ii). 
‘‘(D) CORPORATE BOND YIELD CURVE.—For 
purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘corporate 
bond yield curve’ means, with respect to 
any month, a yield curve which is pre-
scribed by the Secretary of the Treasury for 
such month and which reflects a 3-year 
weighted average of yields on investment 
grade corporate bonds with varying matu-
rities.
‘‘(ii) 3-YEAR
WEIGHTED
AVERAGE.— 
The term ‘3-year weighted average’ means 
an average determined by using a method-
ology under which the most recent year is 
weighted 50 percent, the year preceding 
such year is weighted 35 percent, and the 
second year preceding such year is weighted 
15 percent. 
‘‘(E) APPLICABLE MONTH.—For purposes of 
this paragraph, the term ‘applicable month’ 
means, with respect to any plan for any plan 
year, the month which includes the valuation 
date of such plan for such plan year or, at the 
election of the plan administrator, any of the 4 
months which precede such month. Any election 
made under this subparagraph shall apply to the 
plan year for which the election is made and all 
succeeding plan years, unless the election is re-
voked with the consent of the Secretary of the 
Treasury. 
‘‘(F) PUBLICATION
REQUIREMENTS.—The 
Secretary of the Treasury shall publish for each 
month the corporate bond yield curve (and the 
corporate bond yield curve reflecting the modi-
fication described in section 205(g)(3)(B)(iii)(I))
for such month and each of the rates determined 
under subparagraph (B) for such month. The 
Secretary of the Treasury shall also publish a de-
scription of the methodology used to determine 
such yield curve and such rates which is suffi-
ciently detailed to enable plans to make reason-
able projections regarding the yield curve and 
such rates for future months based on the plan’s 
projection of future interest rates. 
‘‘(G) TRANSITION RULE.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
the preceding provisions of this paragraph, 
for plan years beginning in 2006 or 2007, 
the first, second, or third segment rate for a 
plan with respect to any month shall be 
equal to the sum of— 
‘‘(I) the product of such rate for 
such month determined without regard 
to this subparagraph, multiplied by the 
applicable percentage, and 
‘‘(II) the product of the rate deter-
mined under the rules of section 
302(b)(5)(B)(ii)(II) (as in effect for 
plan years beginning in 2005), multi-
plied by a percentage equal to 100 per-
cent minus the applicable percentage. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of clause (i), the applicable per-
centage is 331⁄3 percent for plan years be-
ginning in 2006 and 662⁄3 percent for plan 
years beginning in 2007. 
‘‘(3) MORTALITY TABLE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (C), the mortality table used in 
determining any present value or making any 
computation under this section shall be the RP– 
2000 Combined Mortality Table, using Scale AA, 
as published by the Society of Actuaries, as in 
effect on the date of the enactment of the Pension 
Protection Act of 2005 and as revised from time 
to time under subparagraph (B). 
‘‘(B) PERIODIC
REVISION.—The Secretary 
of the Treasury shall (at least every 10 years) 
make revisions in any table in effect under sub-
paragraph (A) to reflect the actual experience of 
pension plans and projected trends in such expe-
rience. 
‘‘(C) SUBSTITUTE MORTALITY TABLE.—
‘‘(i) IN
GENERAL.—Upon request by 
the plan sponsor and approval by the Sec-
retary of the Treasury for a period not to 
exceed 10 years, a mortality table which 
meets the requirements of clause (ii) shall be 
used in determining any present value or 
making any computation under this section. 
A mortality table described in this clause 
shall cease to be in effect if the plan actuary 
determines at any time that such table does 
not meet the requirements of subclauses (I) 
and (II) of clause (ii). 
‘‘(ii) REQUIREMENTS.—A mortality 
table meets the requirements of this clause if 
the Secretary of the Treasury determines 
that— 
‘‘(I) such table reflects the actual 
experience of the pension plan and 
projected trends in such experience, 
and 
‘‘(II) such table is significantly 
different from the table described in 
subparagraph (A). 
‘‘(iii) DEADLINE FOR DISPOSITION OF 
APPLICATION.—Any mortality table sub-
mitted to the Secretary of the Treasury for 
approval under this subparagraph shall be 
treated as in effect for the succeeding plan 
year unless the Secretary of the Treasury, 
during the 180-day period beginning on the 
date of such submission, disapproves of such 
table and provides the reasons that such 
table fails to meet the requirements of clause 
(ii). 
‘‘(D) TRANSITION
RULE.—Under regula-
tions of the Secretary of the Treasury, any dif-
ference in assumptions as set forth in the mor-
tality table specified in subparagraph (A) and 
assumptions as set forth in the mortality table 
described in section 302(d)(7)(C)(ii) (as in effect 
for plan years beginning in 2005) shall be 
phased in ratably over the first period of 5 plan 
years beginning in or after 2006 so as to be fully 
effective for the fifth plan year. 
‘‘(4) PROBABILITY
OF
BENEFIT
PAYMENTS
IN 
THE
FORM
OF
LUMP
SUMS
OR
OTHER
OPTIONAL 
FORMS.—For purposes of determining any present 
value or making any computation under this section, 
there shall be taken into account—
‘‘(A) the probability that future benefit pay-
ments under the plan will be made in the form 
of optional forms of benefits provided under the 
plan (including lump sum distributions, deter-
mined on the basis of the plan’s experience and 
other related assumptions), and 
‘‘(B) any difference in the present value of 
such future benefit payments resulting from the 
use of actuarial assumptions, in determining 
benefit payments in any such optional form of 
benefits, which are different from those specified 
in this subsection. 
‘‘(5) APPROVAL OF LARGE CHANGES IN ACTU-
ARIAL ASSUMPTIONS.— 
‘‘(A) IN GENERAL.—No actuarial assump-
tion used to determine the funding target for a 
single-employer plan to which this paragraph 
applies may be changed without the approval of 
the Secretary of the Treasury. 
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to a plan 
only if— 
‘‘(i) the aggregate unfunded vested ben-
efits as of the close of the preceding plan 
year 
(as 
determined 
under 
section
4006(a)(3)(E)(iii)) of such plan and all 
other plans maintained by the contributing 
sponsors (as defined in section 4001(a)(13)) 
and members of such sponsors’ controlled 
groups (as defined in section 4001(a)(14)) 
which are covered by title IV (disregarding 
plans with no unfunded vested benefits) ex-
ceed $50,000,000; and 
‘‘(ii) the change in assumptions (deter-
mined after taking into account any 
changes in interest rate and mortality 
table) results in a decrease in the funding 
shortfall of the plan for the current plan 
year that exceeds $50,000,000, or that ex-
ceeds $5,000,000 and that is 5 percent or 
more of the funding target of the plan before 
such change. 
‘‘(i) SPECIAL RULES FOR AT-RISK PLANS.— 
‘‘(1) FUNDING TARGET FOR PLANS IN AT-RISK 
STATUS.— 
‘‘(A) IN GENERAL.—In any case in which a 
plan is in at-risk status for a plan year, the 
funding target of the plan for the plan year is 
the sum of—
‘‘(i) the present value of all liabilities 
to participants and their beneficiaries 
under the plan for the plan year, as deter-
mined by using, in addition to the actu-
arial assumptions described in subsection 
(g), the supplemental actuarial assumptions 
described in subparagraph (B), plus 
‘‘(ii) a loading factor determined 
under subparagraph (C). 
‘‘(B) SUPPLEMENTAL ACTUARIAL ASSUMP-
TIONS.—The actuarial assumptions used in de-
termining the valuation of the funding target 
shall include, in addition to the actuarial as-
sumptions described in subsection (h), an as-
sumption that all participants will elect benefits 
at such times and in such forms as will result 
in the highest present value of liabilities under 
subparagraph (A)(i). 
‘‘(C) LOADING FACTOR.—The loading factor 
applied with respect to a plan under this para-
graph for any plan year is the sum of— 
‘‘(i) $700, times the number of partici-
pants in the plan, plus
‘‘(ii) 4 percent of the funding target 
(determined without regard to this para-
graph) of the plan for the plan year. 
‘‘(2) 
TARGET
NORMAL
COST
OF
AT-RISK 
PLANS.—In any case in which a plan is in at-risk 
status for a plan year, the target normal cost of the 
plan for such plan year shall be the sum of— 
‘‘(A) the present value of all benefits which 
are expected to accrue or be earned under the 
plan during the plan year, determined under the 
actuarial assumptions used under paragraph 
(1), plus 
‘‘(B) the loading factor under paragraph 
(1)(C), excluding the portion of the loading fac-
tor described in paragraph (1)(C)(i). 
‘‘(3) DETERMINATION OF AT-RISK STATUS.—For 
purposes of this subsection, a plan is in ‘at-risk sta-
tus’ for a plan year if the funding target attainment 
percentage of the plan for the preceding plan year 
was less than 60 percent. 
‘‘(4) TRANSITION BETWEEN APPLICABLE FUND-
ING
TARGETS
AND
BETWEEN
APPLICABLE
TARGET 
NORMAL COSTS.— 
‘‘(A) IN GENERAL.—In any case in which a 
plan which is in at-risk status for a plan year
has been in such status for a consecutive period 
of fewer than 5 plan years, the applicable 
amount of the funding target and of the target 
normal cost shall be, in lieu of the amount deter-
mined without regard to this paragraph, the sum 
of— 
‘‘(i) the amount determined under this 
section without regard to this subsection, 
plus 
‘‘(ii) the transition percentage for such 
plan year of the excess of the amount deter-
mined under this subsection (without regard 
to this paragraph) over the amount deter-
mined under this section without regard to 
this subsection. 
‘‘(B) TRANSITION PERCENTAGE.—For pur-
poses of this paragraph, the ‘transition percent-
age’ for a plan year is the product derived by 
multiplying— 
‘‘(i) 20 percent, by 
‘‘(ii) the number of plan years during 
the period described in subparagraph (A). 
‘‘(j) PAYMENT
OF MINIMUM REQUIRED CONTRIBU-
TIONS.—
‘‘(1) IN GENERAL.—For purposes of this section, 
the due date for any payment of any minimum re-
quired contribution for any plan year shall be 81⁄2 
months after the close of the plan year. 
‘‘(2) INTEREST.—Any payment required under 
paragraph (1) for a plan year made after the valu-
ation date for such plan year shall be increased by in-
terest, for the period from the valuation date to the 
payment date, at the effective rate of interest for the 
plan for such plan year. 
‘‘(3) ACCELERATED QUARTERLY CONTRIBUTION 
SCHEDULE FOR UNDERFUNDED PLANS.— 
‘‘(A) INTEREST PENALTY FOR FAILURE TO 
MEET
ACCELERATED
QUARTERLY
PAYMENT 
SCHEDULE.—In any case in which the plan has 
a funding shortfall for the preceding plan year, 
if the required installment is not paid in full, 
then the minimum required contribution for the 
plan year (as increased under paragraph (2)) 
shall be further increased by an amount equal to 
the interest on the amount of the underpayment 
for the period of the underpayment, using an in-
terest rate equal to the excess of— 
‘‘(i) 175 percent of the Federal mid- 
term rate (as in effect under section 1274 of
the Internal Revenue Code of 1986 for the 
1st month of such plan year), over 
‘‘(ii) the effective rate of interest for the 
plan for the plan year. 
‘‘(B) AMOUNT OF UNDERPAYMENT, PERIOD 
OF UNDERPAYMENT.—For purposes of subpara-
graph (A)— 
‘‘(i) AMOUNT.—The amount of the un-
derpayment shall be the excess of— 
‘‘(I) the required installment, over 
‘‘(II) the amount (if any) of the 
installment contributed to or under the 
plan on or before the due date for the 
installment. 
‘‘(ii) PERIOD
OF
UNDERPAYMENT.— 
The period for which any interest is charged 
under this paragraph with respect to any 
portion of the underpayment shall run from 
the due date for the installment to the date 
on which such portion is contributed to or 
under the plan. 
‘‘(iii) ORDER
OF
CREDITING
CON-
TRIBUTIONS.—For 
purposes 
of 
clause 
(i)(II), contributions shall be credited 
against unpaid required installments in the
order in which such installments are re-
quired to be paid. 
‘‘(C) NUMBER
OF
REQUIRED
INSTALL-
MENTS; DUE DATES.—For purposes of this para-
graph— 
‘‘(i) PAYABLE IN 4 INSTALLMENTS.— 
There shall be 4 required installments for 
each plan year. 
‘‘(ii) TIME FOR PAYMENT OF INSTALL-
MENTS.—The due dates for required install-
ments are set forth in the following table: 
‘‘In the case of the following 
required installment: 
The due date is: 
1st .................................................................................
April 15 
2nd ...............................................................................
July 15 
3rd ................................................................................
October 15 
4th ................................................................................
January 15 of the fol-
lowing year 
‘‘(D) AMOUNT
OF
REQUIRED
INSTALL-
MENT.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The amount of any 
required installment shall be 25 percent of 
the required annual payment. 
‘‘(ii) REQUIRED ANNUAL PAYMENT.— 
For purposes of clause (i), the term ‘re-
quired annual payment’ means the lesser 
of—
‘‘(I) 90 percent of the minimum 
required contribution (without regard 
to any waiver under section 302(c)) to 
the plan for the plan year under this 
section, or 
‘‘(II) in the case of a plan year 
beginning after 2006, 100 percent of 
the minimum required contribution 
(without regard to any waiver under 
section 302(c)) to the plan for the pre-
ceding plan year. 
Subclause (II) shall not apply if the pre-
ceding plan year referred to in such clause 
was not a year of 12 months. 
‘‘(E) FISCAL YEARS AND SHORT YEARS.— 
‘‘(i) FISCAL YEARS.—In applying this 
paragraph to a plan year beginning on any 
date other than January 1, there shall be 
substituted for the months specified in this 
paragraph, the months which correspond 
thereto. 
‘‘(ii) SHORT
PLAN
YEAR.—This sub-
paragraph shall be applied to plan years of 
less than 12 months in accordance with reg-
ulations prescribed by the Secretary of the 
Treasury. 
‘‘(4) LIQUIDITY REQUIREMENT IN CONNECTION 
WITH QUARTERLY CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—A plan to which this 
paragraph applies shall be treated as failing to 
pay the full amount of any required installment 
under paragraph (3) to the extent that the value 
of the liquid assets paid in such installment is 
less than the liquidity shortfall (whether or not 
such liquidity shortfall exceeds the amount of 
such installment required to be paid but for this 
paragraph). 
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to a plan 
(other than a plan that would be described in 
subsection (f)(2)(B) if ‘100’ were substituted for 
‘500’ therein) which— 
‘‘(i) is required to pay installments 
under paragraph (3) for a plan year, and 
‘‘(ii) has a liquidity shortfall for any 
quarter during such plan year. 
‘‘(C) PERIOD
OF
UNDERPAYMENT.—For 
purposes of paragraph (3)(A), any portion of an 
installment that is treated as not paid under
subparagraph (A) shall continue to be treated as 
unpaid until the close of the quarter in which the 
due date for such installment occurs. 
‘‘(D) LIMITATION
ON
INCREASE.—If the 
amount of any required installment is increased 
by reason of subparagraph (A), in no event shall 
such increase exceed the amount which, when 
added to prior installments for the plan year, is 
necessary to increase the funding target attain-
ment percentage of the plan for the plan year 
(taking into account the expected increase in 
funding target due to benefits accruing or earned 
during the plan year) to 100 percent. 
‘‘(E) DEFINITIONS.—For purposes of this 
subparagraph: 
‘‘(i) LIQUIDITY SHORTFALL.—The term 
‘liquidity shortfall’ means, with respect to 
any required installment, an amount equal 
to the excess (as of the last day of the quar-
ter for which such installment is made) of— 
‘‘(I) the base amount with respect 
to such quarter, over 
‘‘(II) the value (as of such last 
day) of the plan’s liquid assets. 
‘‘(ii) BASE AMOUNT.—
‘‘(I) IN GENERAL.—The term ‘base 
amount’ means, with respect to any 
quarter, an amount equal to 3 times 
the sum of the adjusted disbursements 
from the plan for the 12 months ending 
on the last day of such quarter. 
‘‘(II) 
SPECIAL
RULE.—If 
the 
amount determined under subclause (I) 
exceeds an amount equal to 2 times the 
sum of the adjusted disbursements from 
the plan for the 36 months ending on 
the last day of the quarter and an en-
rolled actuary certifies to the satisfac-
tion of the Secretary of the Treasury 
that such excess is the result of non-
recurring 
circumstances, 
the 
base 
amount with respect to such quarter 
shall be determined without regard to 
amounts related to those nonrecurring 
circumstances. 
‘‘(iii) 
DISBURSEMENTS
FROM
THE 
PLAN.—The term ‘disbursements from the 
plan’ means all disbursements from the 
trust, including purchases of annuities,
payments of single sums and other benefits, 
and administrative expenses. 
‘‘(iv) ADJUSTED
DISBURSEMENTS.— 
The term ‘adjusted disbursements’ means 
disbursements from the plan reduced by the 
product of— 
‘‘(I) the plan’s funding target at-
tainment percentage for the plan year, 
and 
‘‘(II) the sum of the purchases of 
annuities, payments of single sums, 
and such other disbursements as the 
Secretary of the Treasury shall provide 
in regulations. 
‘‘(v) LIQUID ASSETS.—The term ‘liq-
uid assets’ means cash, marketable securi-
ties, and such other assets as specified by 
the Secretary of the Treasury in regula-
tions. 
‘‘(vi) QUARTER.—The term ‘quarter’ 
means, with respect to any required install-
ment, the 3-month period preceding the 
month in which the due date for such in-
stallment occurs.
‘‘(F) REGULATIONS.—The Secretary of the 
Treasury may prescribe such regulations as are 
necessary to carry out this paragraph. 
‘‘(k) IMPOSITION OF LIEN WHERE FAILURE TO MAKE 
REQUIRED CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—In the case of a plan covered 
under section 4021 of this Act and to which this sub-
section applies (as provided under paragraph (2)), 
if— 
‘‘(A) any person fails to make a contribu-
tion payment required by section 302 and this 
section before the due date for such payment, and 
‘‘(B) the unpaid balance of such payment 
(including interest), when added to the aggregate 
unpaid balance of all preceding such payments 
for which payment was not made before the due 
date (including interest), exceeds $1,000,000, 
then there shall be a lien in favor of the plan in the 
amount determined under paragraph (3) upon all 
property and rights to property, whether real or per-
sonal, belonging to such person and any other person 
who is a member of the same controlled group of 
which such person is a member. 
‘‘(2) PLANS TO WHICH SUBSECTION APPLIES.— 
This subsection shall apply to a defined benefit plan
which is a single-employer plan for any plan year for 
which the funding target attainment percentage (as 
defined in subsection (d)(2)) of such plan is less than 
100 percent. 
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to the 
aggregate unpaid balance of contribution payments 
required under this section and section 302 for which 
payment has not been made before the due date. 
‘‘(4) NOTICE OF FAILURE; LIEN.— 
‘‘(A) NOTICE OF FAILURE.—A person com-
mitting 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 con-
tinue until the last day of the first plan year in 
which the plan ceases to be described in para-
graph (1)(B). Such lien shall continue to run 
without regard to whether such plan continues 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 simi-
lar 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 Corpora-
tion, by the contributing sponsor (or any member of 
the controlled group of the contributing sponsor). 
‘‘(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