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‘‘(4) ALLOCATIONS.—Allocations of amounts 
under paragraph (3) and subsection (c)(5) among 
the employers maintaining the plan shall not be in-
consistent with the regulations prescribed for this 
purpose by the Secretary.’’. 
(c) SEPARATE RULES FOR CSEC PLANS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
412(a) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and by insert-
ing at the end thereof the following new subpara-
graph: 
‘‘(D) in the case of a CSEC plan, the em-
ployers make contributions to or under the plan 
for any plan year which, in the aggregate, are 
sufficient to ensure that the plan does not have 
an accumulated funding deficiency under sec-
tion 433 as of the end of the plan year.’’. 
(2) CONFORMING AMENDMENTS.—Section 412 
of such Code is amended— 
(A) by striking ‘‘multiemployer plan’’ in 
paragraph (A) of subsection (a)(2), in clause (i) 
of subsection (c)(1)(B), the first place it ap-
pears in clause (i) of subsection (c)(1)(A), and 
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the last place it appears in paragraph (2) of 
subsection (d), and inserting ‘‘multiemployer 
plan or a CSEC plan’’, 
(B) by striking ‘‘430(j)’’ in paragraph (1) 
of subsection (b) and inserting ‘‘430(j) or under 
section 433(f)’’, 
(C)(i) by striking ‘‘and’’ at the end of 
clause (i) of subsection (c)(1)(B), 
(ii) by striking the period at the end of 
clause (ii) of subsection (c)(1)(B) and inserting 
‘‘, and’’, and 
(iii) by inserting the following new clause 
after clause (ii) of subsection (c)(1)(B): 
‘‘(iii) in the case of a CSEC plan, the 
funding standard account shall be credited 
under 
section 
433(b)(3)(C) 
with 
the 
amount of the waived funding deficiency 
and such amount shall be amortized as re-
quired under section 433(b)(2)(C).’’, 
(D) by striking ‘‘under paragraph (1)’’ in 
clause (i) of subsection (c)(4)(A) and inserting 
‘‘under paragraph (1) or for granting an exten-
sion under section 433(d)’’, 
(E) by striking ‘‘waiver under this sub-
section’’ in subparagraph (B) of subsection 
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(c)(4) and inserting ‘‘waiver under this sub-
section or an extension under 433(d)’’, 
(F) by striking ‘‘waiver or modification’’ in 
subclause (I) of subsection (c)(4)(B)(i) and in-
serting ‘‘waiver, modification, or extension’’, 
(G) by striking ‘‘waivers’’ in the heading of 
subsection (c)(4)(C) and of clause (ii) of sub-
section (c)(4)(C) and inserting ‘‘waivers or ex-
tensions’’, 
(H) by striking ‘‘section 431(d)’’ in sub-
paragraph (A) of subsection (c)(7) and in para-
graph (2) of subsection (d) and inserting ‘‘sec-
tion 431(d) or section 433(d)’’, 
(I) by striking ‘‘and’’ at the end of sub-
clause (I) of subsection (c)(4)(C)(i) and insert-
ing ‘‘or the accumulated funding deficiency 
under section 433, whichever is applicable,’’, 
(J) by striking ‘‘430(e)(2),’’ in subclause 
(II) of subsection (c)(4)(C)(i) and inserting 
‘‘430(e)(2) or 433(b)(2)(C), whichever is appli-
cable, and’’, 
(K) by adding immediately after subclause 
(II) of subsection (c)(4)(C)(i) the following new 
subclause: 
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‘‘(III) the total amounts not paid 
by reason of an extension in effect 
under section 433(d),’’, and 
(L) by striking ‘‘for waivers of’’ in clause 
(ii) of subsection (c)(4)(C) and inserting ‘‘for 
waivers or extensions with respect to’’. 
(3) BENEFIT RESTRICTIONS.— 
(A) IN GENERAL.—Paragraph (29) of sec-
tion 401(a) of such Code is amended by strik-
ing ‘‘multiemployer plan’’ and inserting ‘‘multi-
employer plan or a CSEC plan’’. 
(B) CONFORMING
CHANGE.—Subsection 
(a) of section 436 of such Code is amended by 
striking ‘‘single-employer plan’’ and inserting 
‘‘single-employer plan (other than a CSEC 
plan)’’. 
(4) BENEFIT
INCREASES.—Subparagraph (C) 
of section 401(a)(33) of such Code is amended by 
striking ‘‘multiemployer plans’’ and inserting ‘‘multi-
employer plans or CSEC plans’’. 
(5) LIQUIDITY SHORTFALLS.— 
(A) IN
GENERAL.—Subparagraph (A) of 
section 401(a)(32) of such Code is amended by 
striking ‘‘430(j)(4)’’ each place it appears and 
inserting ‘‘430(j)(4) or 433(f)(5)’’. 
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(B) PERIOD
OF
SHORTFALL.—Subpara-
graph (C) of section 401(a)(32) of such Code is 
amended by striking ‘‘430(j)(3) by reason of 
section 430(j)(4)(A) thereof’’ and inserting 
‘‘430(j)(3) or 433(f) by reason of section 
430(j)(4)(A) or 433(f)(5), respectively’’. 
(6) DEDUCTION LIMITS.—Subsection (o) of sec-
tion 404 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(8) CSEC PLANS.—Solely for purposes of this 
subsection, a CSEC plan shall be treated as though 
section 430 applied to such plan and the minimum 
required contribution for any plan year shall be the 
amount described in section 412(a)(2)(D).’’. 
(7) SECTION
420.—Paragraph (5) of section 
420(e) of such Code is amended by striking ‘‘section 
430’’ each place it appears and inserting ‘‘sections 
430 and 433’’. 
(8) COORDINATION WITH SECTION 4971.— 
(A) Subsection (a) of section 4971 of such 
Code is amended by striking ‘‘and’’ at the end 
of paragraph (1), by striking the period at the 
end of paragraph (2) and inserting ‘‘, and’’, 
and by adding at the end thereof the following 
new paragraph: 
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‘‘(3) in the case of a CSEC plan, 10 percent of 
the CSEC accumulated funding deficiency as of the 
end of the plan year ending with or within the tax-
able year.’’. 
(B) Subsection (b) of section 4971 of such 
Code is amended— 
(i) by striking ‘‘or’’ at the end of 
paragraph (1), by adding ‘‘or’’ at the end 
of paragraph (2), and by inserting imme-
diately after paragraph (2) the following 
new paragraph: 
‘‘(3) a tax is imposed under subsection (a)(3) 
on any CSEC accumulated funding deficiency and 
the CSEC accumulated funding deficiency is not cor-
rected within the taxable period,’’, and 
(ii) by striking ‘‘minimum required 
contributions or accumulated funding defi-
ciency’’ and inserting ‘‘minimum required 
contribution, accumulated funding defi-
ciency, or CSEC accumulated funding defi-
ciency’’. 
(C) Subsection (c) of section 4971 of such 
Code is amended— 
(i) by striking ‘‘accumulated funding 
deficiency’’ each place it appears in para-
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graph (2) and inserting ‘‘accumulated 
funding deficiency or CSEC accumulated 
funding deficiency’’, 
(ii) by striking ‘‘accumulated funding 
deficiency or unpaid minimum required 
contribution’’ each place it appears in 
paragraph (3) and inserting ‘‘accumulated 
funding deficiency, CSEC accumulated 
funding deficiency, or unpaid minimum re-
quired contribution’’, and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(5) CSEC ACCUMULATED
FUNDING
DEFI-
CIENCY.—The term ‘CSEC accumulated funding de-
ficiency’ means the accumulated funding deficiency 
determined under section 433.’’. 
(D) Paragraph (1) of section 4971(d) of 
such Code is amended by striking ‘‘accumulated 
funding deficiency or unpaid minimum required 
contribution’’ and inserting ‘‘accumulated fund-
ing deficiency, CSEC accumulated funding defi-
ciency, or unpaid minimum required contribu-
tion’’. 
(E) Subsection (f) of section 4971 of such 
Code is amended— 
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(i) by striking ‘‘430(j)(4)’’ in para-
graph (1) and inserting ‘‘430(j)(4) or 
433(f)’’, 
(ii) by striking ‘‘430(j)’’ in paragraph 
(1)(B) and inserting ‘‘430(j) or 433(f), 
whichever is applicable’’, and 
(iii) by striking ‘‘412(m)(5)’’ in para-
graph (3)(A) and inserting ‘‘430(j) or 
433(f), whichever is applicable’’. 
(9) EXCISE TAX ON FAILURE TO ADOPT FUND-
ING
RESTORATION
PLAN.—Section 4971 of such 
Code is amended by redesignating subsection (h) as 
subsection (i), and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) FAILURE
OF
A CSEC PLAN SPONSOR TO 
ADOPT FUNDING RESTORATION PLAN.— 
‘‘(1) IN GENERAL.—In the case of a CSEC plan 
that is in funding restoration status (within the 
meaning of section 433(j)(5)(A)), there is hereby im-
posed a tax on the failure of such plan to adopt a 
funding restoration plan within the time prescribed 
under section 433(j)(3). 
‘‘(2) AMOUNT OF TAX.—The amount of the tax 
imposed under paragraph (1) with respect to any 
plan sponsor for any taxable year shall be the 
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amount equal to $100 multiplied by the number of 
days during the taxable year which are included in 
the period beginning on the day following the close 
of the 180-day period described in section 433(j)(3) 
and ending on the day on which the funding restora-
tion plan is adopted. 
‘‘(3) WAIVER BY SECRETARY.—In the case of a 
failure described in paragraph (1) which the Sec-
retary determines is due to reasonable cause and not 
to willful neglect, the Secretary may waive a portion 
or all of the tax imposed by such paragraph. 
‘‘(4) LIABILITY FOR TAX.—The tax imposed by 
paragraph (1) shall be paid by the plan sponsor 
(within the meaning of section 433(j)(5)(E)).’’. 
(10) REPORTING.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 6059(b) of such Code is amended by strik-
ing ‘‘430,’’ and inserting ‘‘430, the accumulated 
funding deficiency under section 433,’’. 
(B) ASSUMPTIONS.—Subparagraph (B) of 
section 6059(b)(3) of such Code is amended by 
striking ‘‘430(h)(1) or 431(c)(3)’’ and inserting 
‘‘430(h)(1), 431(c)(3), or 433(c)(3)’’. 
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SEC. 203. ELECTION NOT TO BE TREATED AS A CSEC PLAN. 
(a) IN GENERAL.—Section 414(y) of the Internal 
Revenue Code of 1986, as added by section 201, is amend-
ed by adding at the end the following new paragraph: 
‘‘(3) ELECTION.— 
‘‘(A) IN GENERAL.—If a plan falls within 
the definition of a CSEC plan under this sub-
section (without regard to this paragraph), such 
plan shall be a CSEC plan unless the plan 
sponsor elects not later than the close of the 
first plan year of the plan beginning after De-
cember 31, 2013, not to be treated as a CSEC 
plan. An election under the preceding sentence 
shall take effect for such plan year and, once 
made, may be revoked only with the consent of 
the Secretary. 
‘‘(B) SPECIAL RULE.—If a plan described 
in subparagraph (A) is treated as a CSEC plan, 
section 104 of the Pension Protection Act of 
2006, as amended by the Preservation of Ac-
cess to Care for Medicare Beneficiaries and 
Pension Relief Act of 2010, shall cease to apply 
to such plan as of the first date as of which 
such plan is treated as a CSEC plan.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply as of the date of enactment of this 
Act. 
Passed the House of Representatives March 24, 
2014. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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