sections, to be the valuation date of the plan for 
the current plan year. 
‘‘(C) PRESUMPTION
OF
UNDERFUNDING 
AFTER
4TH
MONTH
FOR
NEARLY
UNDER-
FUNDED 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 pre-
ceding the current plan year, but the fund-
ing target 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 subsection 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 en-
rolled actuary of the plan has not certified 
the actual funding target attainment per-
centage 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 sub-
section, 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 per-
centage 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 a pay-
ment described in paragraph (2)(A) or a cessation of 
benefit accruals under paragraph (3) is applied to a 
plan with respect to any plan year and such prohibi-
tion or cessation, 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 sen-
tence shall not apply to a prohibition or cessation re-
quired 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 per-
centage) which—
‘‘(i) the value of plan assets for the 
plan year (as determined under section 
303(g)) reduced by the pre-funding bal-
ance 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.—
‘‘(i) IN GENERAL.—In the case of a 
plan for any plan year, if the funding tar-
get attainment percentage is 100 percent 
or more (determined without regard to this 
subparagraph and without regard to the 
reduction under subparagraph (A)(i) for 
the pre-funding balance and the funding 
standard carryover balance), subparagraph
(A) shall be applied without regard to such 
reduction. 
‘‘(ii) TRANSITION
RULE.—Clause (i) 
shall be applied to plan years beginning 
after 2006 and before 2011 by substituting 
for ‘100 percent’ the applicable percentage 
determined in accordance with the fol-
lowing table:
‘‘In the case of a plan year beginning in calendar 
year: 
The appli-
cable per-
centage is: 
2007 ..............................................................................................
92 percent
2008 ..............................................................................................
94 percent
2009 ..............................................................................................
96 percent
2010 ..............................................................................................
98 percent. 
‘‘(iii) LIMITATION.—Clause (ii) shall 
not apply with respect to any plan year 
after 2007 unless the funding target at-
tainment percentage (determined without 
regard to this subparagraph and without 
regard to the reduction under subpara-
graph (A)(i) for the pre-funding balance 
and the funding standard carryover bal-
ance) of the plan for each preceding plan 
year after 2006 was not less than the ap-
plicable percentage with respect to such 
preceding plan year determined under 
clause (ii).
‘‘(8) DEEMED REDUCTION OF FUNDING BAL-
ANCES.—In the case of a plan maintained pursuant 
to 1 or more collective bargaining agreements be-
tween employee representatives and 1 or more em-
ployers—
‘‘(A) IN GENERAL.—In any case in which 
a benefit limitation under paragraph (1), (2), or 
(3) would (but for this paragraph and deter-
mined without regard to paragraph (1)(B)) 
apply to such plan for the plan year, the plan 
sponsor of such plan shall be treated for pur-
poses of this Act as having made an election 
under section 303(f)(5) to reduce the balance of 
the pre-funding balance and the funding stand-
ard carryover balance for the plan year (in a 
manner consistent with the requirements of sec-
tion 303(f)(5)(B)) by such amount as is nec-
essary for such benefit limitation to not apply 
to the plan for such plan year. 
‘‘(B) 
EXCEPTION
FOR
INSUFFICIENT 
FUNDING BALANCES.—Subparagraph (A) shall 
not apply with respect to a benefit limitation 
for any plan year if the application of subpara-
graph (A) would not result in the benefit limita-
tion not applying for such plan year.’’.