176
ering on the day of such certification at 
least 75 percent of active participants in 
such multiemployer plan have expired. 
‘‘(C) REPORTING.—A summary of any 
funding improvement plan or modification 
thereto adopted during any plan year shall be 
included in the annual report for such plan year 
under section 104(a) and in the summary an-
nual report described in section 104(b)(3). 
‘‘(4) DEVELOPMENT
OF
FUNDING
IMPROVE-
MENT PLAN.—
‘‘(A) ACTIONS BY PLAN SPONSOR PENDING 
APPROVAL.—Pending the approval of a funding 
improvement plan under this paragraph, the 
plan sponsor shall take all reasonable actions, 
consistent with the terms of the plan and appli-
cable law, necessary to ensure—
‘‘(i) an increase in the plan’s funded 
percentage, and 
‘‘(ii) postponement of an accumulated 
funding deficiency for at least 1 additional 
plan year. 
Such actions include applications for extensions 
of amortization periods under section 304(d), 
use of the shortfall funding method in making
177
funding 
standard 
account 
computations, 
amendments to the plan’s benefit structure, re-
ductions in future benefit accruals, and other 
reasonable actions consistent with the terms of 
the plan and applicable law. 
‘‘(B) RECOMMENDATIONS BY PLAN SPON-
SOR.—
‘‘(i) IN GENERAL.—During the period 
of 90 days following the date on which a 
multiemployer plan is certified to be in en-
dangered status, the plan sponsor shall de-
velop and provide to the bargaining parties 
alternative proposals for revised benefit 
structures, 
contribution 
structures, 
or 
both, which, if adopted as amendments to 
the plan, may be reasonably expected to 
meet the benchmarks described in para-
graph (3)(A). Such proposals shall in-
clude—
‘‘(I) at least one proposal for re-
ductions in the amount of future ben-
efit accruals necessary to achieve the 
benchmarks, assuming no amend-
ments increasing contributions under 
the plan (other than amendments in-
178
creasing contributions necessary to 
achieve the benchmarks after amend-
ments have reduced future benefit ac-
cruals to the maximum extent per-
mitted by law), and 
‘‘(II) at least one proposal for in-
creases in contributions under the 
plan necessary to achieve the bench-
marks, assuming no amendments re-
ducing future benefit accruals under 
the plan. 
‘‘(ii) REQUESTS BY BARGAINING PAR-
TIES.—Upon the request of any bargaining 
party who—
‘‘(I) employs at least 5 percent of 
the active participants, or 
‘‘(II) represents as an employee 
organization, for purposes of collective 
bargaining, at least 5 percent of the 
active participants, 
the plan sponsor shall provide all such par-
ties information as to other combinations 
of increases in contributions and reduc-
tions in future benefit accruals which 
would result in achieving the benchmarks.
179
‘‘(iii) 
OTHER
INFORMATION.—The 
plan sponsor may, as it deems appropriate, 
prepare and provide the bargaining parties 
with additional information relating to con-
tribution structures or benefit structures 
or other information relevant to the fund-
ing improvement plan. 
‘‘(5) MAINTENANCE OF CONTRIBUTIONS PEND-
ING APPROVAL OF FUNDING IMPROVEMENT PLAN.—
Pending approval of a funding improvement plan by 
the bargaining parties with respect to a multiem-
ployer plan, the multiemployer plan may not be 
amended so as to provide—
‘‘(A) a reduction in the level of contribu-
tions for participants who are not in pay status, 
‘‘(B) a suspension of contributions with re-
spect to any period of service, or 
‘‘(C) any new direct or indirect exclusion 
of younger or newly hired employees from plan 
participation. 
‘‘(6) BENEFIT
RESTRICTIONS
PENDING
AP-
PROVAL OF FUNDING IMPROVEMENT PLAN.—Pend-
ing approval of a funding improvement plan by the 
bargaining parties with respect to a multiemployer 
plan—
180
‘‘(A) RESTRICTIONS
ON
LUMP
SUM
DIS-
TRIBUTIONS
AND
SIMILAR
DISTRIBUTIONS.—
The multiemployer plan may not be amended so 
as to provide additional forms of benefits. 
‘‘(B) 
PROHIBITION
ON
BENEFIT
IN-
CREASES.—
‘‘(i) IN GENERAL.—No amendment of 
the plan which increases the liabilities of 
the plan by reason of any increase in bene-
fits, any change in the accrual of benefits, 
or any change in the rate at which benefits 
become nonforfeitable under the plan may 
be adopted. 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply to any plan amendment which—
‘‘(I) the Secretary of the Treas-
ury determines to be reasonable and 
which provides for only de minimis in-
creases in the liabilities of the plan, 
‘‘(II) only repeals an amendment 
described in section 302(d)(2), or 
‘‘(III) is required as a condition 
of qualification under part I of sub-
chapter D of chapter 1 of subtitle A 
of the Internal Revenue Code of 1986.
181
‘‘(7) DEFAULT CRITICAL STATUS IF NO FUND-
ING
IMPROVEMENT
PLAN
ADOPTED.—If no plan 
amendment adopting a funding improvement plan 
has been adopted by the end of the 240-day period 
referred to in subsection (a)(1), the plan shall be in 
critical status as of the first day of the succeeding 
plan year. 
‘‘(8) RESTRICTIONS UPON APPROVAL OF FUND-
ING
IMPROVEMENT
PLAN.—Upon adoption of a 
funding improvement plan with respect to a multi-
employer plan, the plan may not be amended—
‘‘(A) so as to be inconsistent with the 
funding improvement plan, or 
‘‘(B) so as to increase future benefit accru-
als, unless the plan actuary certifies in advance 
that, after taking into account the proposed in-
crease, the plan is reasonably expected to meet 
the the benchmarks described in paragraph 
(3)(A). 
‘‘(c) FUNDING RULES FOR MULTIEMPLOYER PLANS 
IN CRITICAL STATUS.—
‘‘(1) IN
GENERAL.—In any case in which a 
multiemployer plan is in critical status for a plan 
year, the plan sponsor shall, in accordance with this 
subsection, amend the plan to include a rehabilita-