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be applied by substituting ‘the 15-year pe-
riod’ for ‘the 10-year period’. 
‘‘(D) REPORTING.—A summary of any 
funding improvement plan or modification 
thereto adopted during any plan year, together 
with annual updates regarding the funding 
ratio of the plan, shall be included in the an-
nual report for such plan year under section 
104(a) and in the summary annual report de-
scribed 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),
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HR 2830 PCS 
use of the shortfall funding method in making 
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
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HR 2830 PCS 
the plan (other than amendments in-
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-
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tions in future benefit accruals which 
would result in achieving the benchmarks. 
‘‘(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
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bargaining parties with respect to a multiemployer 
plan— 
‘‘(A) RESTRICTIONS
ON
LUMP
SUM
AND 
SIMILAR DISTRIBUTIONS.—In any case in which 
the present value of a participant’s accrued 
benefit under the plan exceeds $5,000, such 
benefit may not be distributed as an immediate 
distribution or in any other accelerated form. 
‘‘(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 is 
required as a condition of qualification 
under part I of subchapter D of chapter 1 
of subtitle A of the Internal Revenue Code 
of 1986. 
‘‘(7) DEFAULT CRITICAL STATUS IF NO FUND-
ING
IMPROVEMENT
PLAN
ADOPTED.—If no plan
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amendment adopting a funding improvement plan 
has been adopted by the end of the 240-day period 
referred to in subsection (b)(1), the plan enters into 
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 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 as described in paragraph (2) (or otherwise en-
ters into critical status under this section) and no 
rehabilitation plan under this subsection with respect 
to such multiemployer plan is in effect for the plan 
year, the plan sponsor shall, in accordance with this
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subsection, amend the multiemployer plan to include 
a rehabilitation plan under this subsection. The 
amendment shall be adopted not later than 240 days 
after the date on which the plan enters into critical 
status. 
‘‘(2) CRITICAL STATUS.—A multiemployer plan 
is in critical status for a plan year if— 
‘‘(A) the plan is in endangered status for 
the preceding plan year and the requirements of 
subsection (b)(1) were not met with respect to 
the plan for such preceding plan year, or 
‘‘(B) as determined by the plan actuary 
under subsection (a), the plan is described in 
paragraph (3). 
‘‘(3) CRITICALITY DESCRIPTION.—For purposes 
of paragraph (2)(B), a plan is described in this 
paragraph if the plan is described in at least one of 
the following subparagraphs: 
‘‘(A) A plan is described in this subpara-
graph if, as of the beginning of the current plan 
year— 
‘‘(i) the funded percentage of the plan 
is less than 65 percent, and 
‘‘(ii) the sum of—
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HR 2830 PCS 
‘‘(I) the market value of plan as-
sets, plus 
‘‘(II) the present value of the 
reasonably anticipated employer and 
employee contributions for the current 
plan year and each of the 6 suc-
ceeding plan years, assuming that the 
terms of the one or more collective 
bargaining agreements pursuant to 
which the plan is maintained for the 
current plan year continue in effect 
for succeeding plan years, 
is less than the present value of all non-
forfeitable benefits for all participants and 
beneficiaries projected to be payable under 
the plan during the current plan year and 
each of the 6 succeeding plan years (plus 
administrative expenses for such plan 
years). 
‘‘(B) A plan is described in this subpara-
graph if, as of the beginning of the current plan 
year, the sum of— 
‘‘(i) the market value of plan assets, 
plus
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HR 2830 PCS 
‘‘(ii) the present value of the reason-
ably anticipated employer and employee 
contributions for the current plan year and 
each of the 4 succeeding plan years, as-
suming that the terms of the one or more 
collective bargaining agreements pursuant 
to which the plan is maintained for the 
current plan year remain in effect for suc-
ceeding plan years, 
is less than the present value of all nonforfeit-
able benefits for all participants and bene-
ficiaries projected to be payable under the plan 
during the current plan year and each of the 4 
succeeding plan years (plus administrative ex-
penses for such plan years). 
‘‘(C) A plan is described in this subpara-
graph if— 
‘‘(i) as of the beginning of the current 
plan year, the funded percentage of the 
plan is less than 65 percent, and 
‘‘(ii) the plan has an accumulated 
funding deficiency for the current plan 
year or is projected to have an accumu-
lated funding deficiency for any of the 4 
succeeding plan years, not taking into ac-
220 
HR 2830 PCS 
count any extension of amortization peri-
ods under section 304(d). 
‘‘(D) A plan is described in this subpara-
graph if— 
‘‘(i)(I) the plan’s normal cost for the 
current plan year, plus interest (deter-
mined at the rate used for determining 
cost under the plan) for the current plan 
year on the amount of unfunded benefit li-
abilities under the plan as of the last date 
of the preceding plan year, exceeds 
‘‘(II) the present value, as of the be-
ginning of the current plan year, of the 
reasonably anticipated employer and em-
ployee contributions for the current plan 
year, 
‘‘(ii) the present value, as of the be-
ginning of the current plan year, of non-
forfeitable benefits of inactive participants 
is greater than the present value, as of the 
beginning of the current plan year, of non-
forfeitable benefits of active participants, 
and 
‘‘(iii) the plan is projected to have an 
accumulated funding deficiency for the
221 
HR 2830 PCS 
current plan year or any of the 4 suc-
ceeding plan years, not taking into account 
any extension of amortization periods 
under section 304(d). 
‘‘(E) A plan is described in this subpara-
graph if— 
‘‘(i) the funded percentage of the plan 
is greater than 65 percent for the current 
plan year, and 
‘‘(ii) the plan is projected to have an 
accumulated funding deficiency during any 
of the succeeding 3 plan years, not taking 
into account any extension of amortization 
periods under section 304(d). 
‘‘(4) REHABILITATION PLAN.— 
‘‘(A) IN GENERAL.—A rehabilitation plan 
shall consist of— 
‘‘(i) amendments to the plan providing 
(under reasonable actuarial assumptions) 
for measures, agreed to by the bargaining 
parties, to increase contributions, reduce 
plan expenditures (including plan mergers 
and consolidations), or reduce future ben-
efit accruals, or to take any combination of 
such actions, determined necessary to
222 
HR 2830 PCS 
cause the plan to cease, during the reha-
bilitation period, to be in critical status, or 
‘‘(ii) reasonable measures to forestall 
possible insolvency (within the meaning of 
section 4245) if the plan sponsor deter-
mines that, upon exhaustion of all reason-
able measures, the plan would not cease 
during the rehabilitation period to be in 
critical status. 
A rehabilitation must provide annual standards 
for meeting the requirements of such rehabilita-
tion plan. 
‘‘(B) REHABILITATION PERIOD.—The re-
habilitation period for any rehabilitation plan 
adopted pursuant to this subsection is the 10- 
year period beginning on the earlier of— 
‘‘(i) the second anniversary of the 
date of the adoption of the rehabilitation 
plan, or 
‘‘(ii) the first day of the first plan 
year of the multiemployer plan following 
the plan year in which occurs the first 
date, after the date of the plan’s entry into 
critical status, as of which collective bar-
gaining agreements covering at least 75
223 
HR 2830 PCS 
percent of active participants in such mul-
tiemployer plan (determined as of such 
date of entry) have expired. 
‘‘(C) REPORTING.—A summary of any re-
habilitation plan or modification thereto adopt-
ed during any plan year, together with annual 
updates regarding the funding ratio of the plan, 
shall be included in the annual report for such 
plan year under section 104(a) and in the sum-
mary annual report described in section 
104(b)(3). 
‘‘(5) 
DEVELOPMENT
OF
REHABILITATION 
PLAN.— 
‘‘(A) PROPOSALS BY PLAN SPONSOR.— 
‘‘(i) IN
GENERAL.—Within 90 days 
after the date of entry into critical status 
(or the date as of which the requirements 
of subsection (b)(1) are not met with re-
spect to the plan), the plan sponsor shall 
propose to all bargaining parties a range of 
alternative schedules of increases in con-
tributions and reductions in future benefit 
accruals that would serve to carry out a re-
habilitation plan under this subsection.
224 
HR 2830 PCS 
‘‘(ii) PROPOSAL
ASSUMING
NO
CON-
TRIBUTION
INCREASES.—Such proposals 
shall include, as one of the proposed sched-
ules, a schedule of those reductions in fu-
ture benefit accruals that would be nec-
essary to cause the plan to cease to be in 
critical status if there were no further in-
creases in rates of contribution to the plan. 
‘‘(iii) PROPOSAL
WHERE
CONTRIBU-
TIONS ARE NECESSARY.—If the plan spon-
sor determines that the plan will not cease 
to be in critical status during the rehabili-
tation period unless the plan is amended to 
provide for an increase in contributions, 
the plan sponsor’s proposals shall include a 
schedule of those increases in contribution 
rates that would be necessary to cause the 
plan to cease to be in critical status if fu-
ture benefit accruals were reduced to the 
maximum extent permitted by law. 
‘‘(B) REQUESTS FOR ADDITIONAL SCHED-
ULES.—Upon the request of any bargaining 
party who— 
‘‘(i) employs at least 5 percent of the 
active participants, or
225 
HR 2830 PCS 
‘‘(ii) represents as an employee orga-
nization, for purposes of collective bar-
gaining, at least 5 percent of active partici-
pants, 
the plan sponsor shall include among the pro-
posed schedules such schedules of increases in 
contributions and reductions in future benefit 
accruals as may be specified by the bargaining 
parties. 
‘‘(C) SUBSEQUENT
AMENDMENTS.—Upon 
the adoption of a schedule of increases in con-
tributions or reductions in future benefit accru-
als as part of the rehabilitation plan, the plan 
sponsor may amend the plan thereafter to up-
date the schedule to adjust for any experience 
of the plan contrary to past actuarial assump-
tions, except that such an amendment may be 
made not more than once in any 3-year period. 
‘‘(D) ALLOCATION OF REDUCTIONS IN FU-
TURE BENEFIT ACCRUALS.—Any schedule con-
taining reductions in future benefit accruals 
forming a part of a rehabilitation plan shall be 
applicable with respect to any group of active 
participants who are employed by any bar-
gaining party (as an employer obligated to con-
226 
HR 2830 PCS 
tribute under the plan) in proportion to the ex-
tent to which increases in contributions under 
such schedule apply to such bargaining party. 
‘‘(E) LIMITATION
ON
REDUCTION
IN 
RATES OF FUTURE ACCRUALS.—Any schedule 
proposed under this paragraph shall not reduce 
the rate of future accruals below the lower of— 
‘‘(i) a monthly benefit equal to 1 per-
cent of the contributions required to be 
made with respect to a participant or the 
equivalent standard accrual rate for a par-
ticipant or group of participants under the 
collective bargaining agreements in effect 
as of the first day of the plan year in 
which the plan enters critical status, or 
‘‘(ii) if lower, the accrual rate under 
the plan on such date. 
The equivalent standard accrual rate shall be 
determined by the trustees based on the stand-
ard or average contribution base units that they 
determine to be representative for active partici-
pants and such other factors as they determine 
to be relevant. 
‘‘(F) PROTECTION
OF
RESTORED
RATES 
OF ACCRUAL.—
227 
HR 2830 PCS 
‘‘(i) IN GENERAL.—Any schedule pro-
posed under this paragraph shall not re-
duce the rate of future accruals below any 
restored accrual rate. 
‘‘(ii) RESTORED ACCRUAL RATE.—For 
purposes of clause (i), the term ‘restored 
accrual rate’ means a rate of benefit accru-
als which was reduced and subsequently 
restored before entry of the plan into crit-
ical status. 
‘‘(6) MAINTENANCE
OF
CONTRIBUTIONS
AND 
RESTRICTIONS ON BENEFITS PENDING ADOPTION OF 
REHABILITATION
PLAN.—The rules of paragraphs 
(5) and (6) of subsection (b) shall apply for pur-
poses of this subsection by substituting the term ‘re-
habilitation plan’ for ‘funding improvement plan’. 
‘‘(7) SPECIAL RULES.— 
‘‘(A) 
AUTOMATIC
EMPLOYER
SUR-
CHARGE.— 
‘‘(i) 5 PERCENT
AND
PERCENT 
SURCHARGE.—For the first plan year in 
which the plan is in critical status, each 
employer otherwise obligated to make a 
contribution for that plan year shall be ob-
ligated to pay to the plan a surcharge
228 
HR 2830 PCS 
equal to 5 percent of the contribution oth-
erwise required under the respective collec-
tive bargaining agreement (or other agree-
ment pursuant to which the employer con-
tributes). For each consecutive plan year 
thereafter in which the plan is in critical 
status, the surcharge shall be 10 percent of 
the contribution otherwise required under 
the respective collective bargaining agree-
ment (or other agreement pursuant to 
which the employer contributes). 
‘‘(ii) 
ENFORCEMENT
OF
SUR-
CHARGE.—The surcharges under clause (i) 
shall be due and payable on the same 
schedule as the contributions on which 
they are based. Any failure to make a sur-
charge payment shall be treated as a delin-
quent contribution under section 515 and 
shall be enforceable as such. 
‘‘(iii) SURCHARGE
TO
TERMINATE 
UPON
CBA
RENEGOTIATION.—The sur-
charge under this paragraph shall cease to 
be effective with respect to employees cov-
ered by a collective bargaining agreement,
229 
HR 2830 PCS 
beginning on the date on which that agree-
ment is renegotiated to include— 
‘‘(I) a schedule of benefits and 
contributions published by the trust-
ees pursuant to the plan’s rehabilita-
tion plan, or 
‘‘(II) otherwise collectively bar-
gained benefit changes. 
‘‘(iv) SURCHARGE
NOT
TO
APPLY 
UNTIL
EMPLOYER
RECEIVES
30-DAY
NO-
TICE.—The surcharge under this subpara-
graph shall not apply to an employer until 
30 days after the employer has been noti-
fied by the trustees that the plan is in crit-
ical status and that the surcharge is in ef-
fect. 
‘‘(v) SURCHARGE NOT TO GENERATE 
INCREASED
BENEFIT
ACCRUALS.—Not-
withstanding any provision of a plan to the 
contrary, the amount of any surcharge 
shall not be the basis for any benefit ac-
cruals under the plan. 
‘‘(B) BENEFIT ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—The trustees shall 
make appropriate reductions, if any, to ad-
230 
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justable benefits based upon the outcome 
of collective bargaining over the schedules 
provided under paragraph (5). 
‘‘(ii) RETIREE PROTECTION.—Except 
as provided in subparagraph (C), the trust-
ees of a plan in critical status may not re-
duce adjustable benefits of any participant 
or beneficiary who was in pay status at 
least one year before the first day of the 
first plan year in which the plan enters 
into critical status. 
‘‘(iii) TRUSTEE
FLEXIBILITY.—The 
trustees shall include in the schedules pro-
vided to the bargaining parties an allow-
ance for funding the benefits of partici-
pants with respect to whom contributions 
are not currently required to be made, and 
shall reduce their benefits to the extent 
permitted under this title and considered 
appropriate based on the plan’s then cur-
rent overall funding status and its future 
prospects in light of the results of the par-
ties’ negotiations.
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HR 2830 PCS 
‘‘(C) ADJUSTABLE
BENEFIT
DEFINED.— 
For purposes of this paragraph, the term ‘ad-
justable benefit’ means— 
‘‘(i) benefits, rights, and features, 
such as post-retirement death benefits, 60- 
month guarantees, disability benefits not 
yet in pay status, and similar benefits, 
‘‘(ii) retirement-type subsidies, early 
retirement benefits, and benefit payment 
options (other than the 50 percent quali-
fied joint-and-survivor benefit and single 
life annuity), and 
‘‘(iii) benefit increases that would not 
be eligible for a guarantee under section 
4022A on the first day of the plan year in 
which the plan enters into critical status 
because they were adopted, or if later, took 
effect less than 60 months before reorga-
nization. 
‘‘(D) NORMAL
RETIREMENT
BENEFITS 
PROTECTED.—Nothing in this paragraph shall 
be construed to permit a plan to reduce the 
level of a participant’s accrued benefit payable 
at normal retirement age which is not an ad-
justable benefit.
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‘‘(E) 
ADJUSTMENTS
DISREGARDED
IN 
WITHDRAWAL LIABILITY DETERMINATION.— 
‘‘(i) 
BENEFIT
REDUCTIONS.—Any 
benefit reductions under this paragraph 
shall be disregarded in determining a 
plan’s unfunded vested benefits for pur-
poses of determining an employer’s with-
drawal liability under section 4201. 
‘‘(ii) SURCHARGES.—Any surcharges 
under this paragraph shall be disregarded 
in determining an employer’s withdrawal 
liability under section 4211, except for 
purposes of determining the unfunded vest-
ed benefits attributable to an employer or 
under a modified attributable method 
adopted with the approval of the Pension 
Benefit Guaranty Corporation under sub-
section (c)(5) of that section. 
‘‘(8) RESTRICTIONS UPON APPROVAL OF REHA-
BILITATION PLAN.—Upon adoption of a rehabilita-
tion plan with respect to a multiemployer plan, the 
plan may not be amended— 
‘‘(A) so as to be inconsistent with the re-
habilitation plan, or