#aacth ,,congress #b;d ,session ,s4 #acjb ,,an ,,act ,to amend the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf to provide for cooperative and small employer charity pension plans4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,cooperative and ,small ,employer ,charity ,pension ,flexibility ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,congressional findings and declarations of policy4,sec4 #c4 ,effective date4,,title ,i--,amendments to ,employee ,retirement ,income ,security ,act of #aigd and other provisions,sec4 #aja4 ,definition of cooperative and small employer charity pension plans4,sec4 #ajb4 ,funding rules applicable to cooperative and small employer charity pension plans4,sec4 #ajc4 ,elections4,sec4 #ajd4 ,transparency4,sec4 #aje4 ,sponsor education and assistance4,,title ,,ii--,amendments to ,internal ,revenue ,code of #aihf,sec4 #bja4 ,definition of cooperative and small employer charity pension plans4,sec4 #bjb4 ,funding rules applicable to cooperative and small employer charity pension plans4,sec4 #bjc4 ,election not to be treated as a ,,csec plan4 #b4 ,congressional findings and declarations of policy ,congress finds as follows3 7#a7 ,defined benefit pension plans are a cost-effective way for cooperative associations and charities to provide their employees with economic security in retirement4 7#b7 ,many cooperative associations and charitable organizations are only able to provide their employees with defined benefit pension plans because those organizations are able to pool their resources using the multiple employer plan structure4 7#c7 ,the pension funding rules should encourage cooperative associations and charities to continue to provide their employees with pension benefits4 #c4 ,effective date ,unless otherwise specified in this ,act1 the provisions of this ,act shall apply to years beginning after ,december #ca1 #bjac4 ,i ,amendments to ,employee ,retirement ,income ,security ,act of #aigd and other provisions #aja4 ,definition of cooperative and small employer charity pension plans ,section #baj of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajfj7 is amended by adding at the end the following new subsection3 7f7 ,cooperative and small employer charity pension plans 7#a7 ,in general ,for purposes of this title1 except as provided in this subsection1 a ,,csec plan is an employee pension benefit plan 7other than a multiemployer plan7 that is a defined benefit plan-- 7,a7 to which section #ajd of the ,pension ,protection ,act of #bjjf applies1 without regard to-- 7i7 section #ajd7;a77#b7 of such ,act2 7ii7 the amendments to such section #ajd by section #bjb7;b7 of the ,preservation of ,access to ,care for ,medicare ,beneficiaries and ,pension ,relief ,act of #bjaj2 and 7iii7 paragraph 7#c77;,b72 or 7,b7 that1 as of ,june #be1 #bjaj1 was maintained by more than one employer and all of the employers were organizations described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,aggregation ,all employers that are treated as a single employer under subsection 7b7 or 7c7 of section #dad of the ,internal ,revenue ,code of #aihf shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph 7#a77;,b74 4 #ajb4 ,funding rules applicable to cooperative and small employer charity pension plans 7a7 ,in general ,part #c of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajha et seq47 is amended by adding at the end the following new section3 #cjf4 ,minimum funding standards 7a7 ,general rule ,for purposes of section #cjb1 the term accumulated funding deficiency for a ,,csec plan means the excess of the total charges to the funding standard account for all plan years 7beginning with the first plan year to which section #cjb applies7 over the total credits to such account for such years or1 if less1 the excess of the total charges to the alternative minimum funding standard account for such plan years over the total credits to such account for such years4 7b7 ,funding standard account 7#a7 ,account required ,each plan to which this section applies shall establish and maintain a funding standard account4 ,such account shall be credited and charged solely as provided in this section4 7#b7 ,charges to account ,for a plan year1 the funding standard account shall be charged with the sum of-- 7,a7 the normal cost of the plan for the plan year1 7,b7 the amounts necessary to amortize in equal annual installments 7until fully amortized7-- 7i7 in the case of a plan in existence on ,january #a1 #aigd1 the unfunded past service liability under the plan on the first day of the first plan year to which section #cjb applies1 over a period of #dj plan years1 7ii7 in the case of a plan which comes into existence after ,january #a1 #aigd1 but before the first day of the first plan year beginning after ,december #ca1 #bjac1 the unfunded past service liability under the plan on the first day of the first plan year to which section #cjb applies1 over a period of #cj plan years1 7iii7 separately1 with respect to each plan year1 the net increase 7if any7 in unfunded past service liability under the plan arising from plan amendments adopted in such year1 over a period of #ae plan years1 7iv7 separately1 with respect to each plan year1 the net experience loss 7if any7 under the plan1 over a period of #e plan years1 and 7v7 separately1 with respect to each plan year1 the net loss 7if any7 resulting from changes in actuarial assumptions used under the plan1 over a period of #aj plan years1 7,c7 the amount necessary to amortize each waived funding deficiency 7within the meaning of section #cjb7;c77#c77 for each prior plan year in equal annual installments 7until fully amortized7 over a period of #e plan years1 7,d7 the amount necessary to amortize in equal annual installments 7until fully amortized7 over a period of #e plan years any amount credited to the funding standard account under paragraph 7#c77;,d71 and 7,e7 the amount necessary to amortize in equal annual installments 7until fully amortized7 over a period of #bj years the contributions which would be required to be made under the plan but for the provisions of section #cjb7;c77#g77;,a77i77,i7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf74 7#c7 ,credits to account ,for a plan year1 the funding standard account shall be credited with the sum of-- 7,a7 the amount considered contributed by the employer to or under the plan for the plan year1 7,b7 the amount necessary to amortize in equal annual installments 7until fully amortized7-- 7i7 separately1 with respect to each plan year1 the net decrease 7if any7 in unfunded past service liability under the plan arising from plan amendments adopted in such year1 over a period of #ae plan years1 7ii7 separately1 with respect to each plan year1 the net experience gain 7if any7 under the plan1 over a period of #e plan years1 and 7iii7 separately1 with respect to each plan year1 the net gain 7if any7 resulting from changes in actuarial assumptions used under the plan1 over a period of #aj plan years1 7,c7 the amount of the waived funding deficiency 7within the meaning of section #cjb7;c77#c77 for the plan year1 and 7,d7 in the case of a plan year for which the accumulated funding deficiency is determined under the funding standard account if such plan year follows a plan year for which such deficiency was determined under the alternative minimum funding standard1 the excess 7if any7 of any debit balance in the funding standard account 7determined without regard to this subparagraph7 over any debit balance in the alternative minimum funding standard account4 7#d7 ,combining and offsetting amounts to be amortized ,under regulations prescribed by the ,secretary of the ,treasury1 amounts required to be amortized under paragraph 7#b7 or paragraph 7#c71 as the case may be-- 7,a7 may be combined into one amount under such paragraph to be amortized over a period determined on the basis of the remaining amortization period for all items entering into such combined amount1 and 7,b7 may be offset against amounts required to be amortized under the other such paragraph1 with the resulting amount to be amortized over a period determined on the basis of the remaining amortization periods for all items entering into whichever of the two amounts being offset is the greater4 7#e7 ,interest 7,a7 ,in general ,except as provided in subparagraph 7,b71 the funding standard account 7and items therein7 shall be charged or credited 7as determined under regulations prescribed by the ,secretary of the ,treasury7 with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs4 7,b7 ,exception ,the interest rate used for purposes of computing the amortization charge described in subsection 7b77#b77;,c7 or for purposes of any arrangement under subsection 7d7 for any plan year shall be the greater of-- 7i7 #aej percent of the ,federal mid-term rate 7as in effect under section #abgd of the ,internal ,revenue ,code of #aihf for the #ast month of such plan year71 or 7ii7 the rate of interest determined under subparagraph 7,a74 7#f7 ,amortization schedules in effect ,amortization schedules for amounts described in paragraphs 7#b7 and 7#c7 that are in effect as of the last day of the last plan year beginning before ,january #a1 #bjad1 by reason of section #ajd of the ,pension ,protection ,act of #bjjf shall remain in effect pursuant to their terms and this section1 except that such amounts shall not be amortized again under this section4 7c7 ,special rules 7#a7 ,determinations to be made under funding method ,for purposes of this section1 normal costs1 accrued liability1 past service liabilities1 and experience gains and losses shall be determined under the funding method used to determine costs under the plan4 7#b7 ,valuation of assets 7,a7 ,in general ,for purposes of this section1 the value of the plan's assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value and which is permitted under regulations prescribed by the ,secretary of the ,treasury4 7,b7 ,dedicated bond portfolio ,the ,secretary of the ,treasury may by regulations provide that the value of any dedicated bond portfolio of a plan shall be determined by using the interest rate under section #cjb7;b77#e7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf74 7#c7 ,actuarial assumptions must be reasonable ,for purposes of this section1 all costs1 liabilities1 rates of interest1 and other factors under the plan shall be determined on the basis of actuarial assumptions and methods-- 7,a7 each of which is reasonable 7taking into account the experience of the plan and reasonable expectations71 and 7,b7 which1 in combination1 offer the actuary's best estimate of anticipated experience under the plan4 7#d7 ,treatment of certain changes as experience gain or loss ,for purposes of this section1 if-- 7,a7 a change in benefits under the ,social ,security ,act or in other retirement benefits created under ,federal or ,state law1 or 7,b7 a change in the definition of the term wages under section #caba of the ,internal ,revenue ,code of #aihf or a change in the amount of such wages taken into account under regulations prescribed for purposes of section #dja7;a77#e7 of such ,code1 results in an increase or decrease in accrued liability under a plan1 such increase or decrease shall be treated as an experience loss or gain4 7#e7 ,funding method and plan year 7,a7 ,funding methods available ,all funding methods available to ,,csec plans under section #cjb 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf7 shall continue to be available under this section4 7,b7 ,changes ,if the funding method for a plan is changed1 the new funding method shall become the funding method used to determine costs and liabilities under the plan only if the change is approved by the ,secretary of the ,treasury4 ,if the plan year for a plan is changed1 the new plan year shall become the plan year for the plan only if the change is approved by the ,secretary of the ,treasury4 7,c7 ,approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement 7i7 ,in general ,no actuarial assumption 7other than the assumptions described in subsection 7h77#c77 used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the ,secretary of the ,treasury4 7ii7 ,plans to which subparagraph applies ,this subparagraph shall apply to a plan only if-- 7,i7 the plan is a ,,csec plan1 7,,ii7 the aggregate unfunded vested benefits as of the close of the preceding plan year 7as determined under section #djjf7;a77#c77;,e77iii77 of such plan and all other plans maintained by the contributing sponsors 7as defined in section #djja7;a77#ac77 and members of such sponsors' controlled groups 7as defined in section #djja7;a77#ad77 which are covered by title ,,iv 7disregarding plans with no unfunded vested benefits7 exceed #ej1jjj1jjj1 and 7,,iii7 the change in assumptions 7determined after taking into account any changes in interest rate and mortality table7 results in a decrease in the funding shortfall of the plan for the current plan year that exceeds #ej1jjj1jjj1 or that exceeds #e1jjj1jjj and that is #e percent or more of the current liability of the plan before such change4 7#f7 ,full funding ,if1 as of the close of a plan year1 a plan would 7without regard to this paragraph7 have an accumulated funding deficiency 7determined without regard to the alternative minimum funding standard account permitted under subsection 7e77 in excess of the full funding limitation-- 7,a7 the funding standard account shall be credited with the amount of such excess1 and 7,b7 all amounts described in paragraphs 7#b77;,b71 7,c71 and 7,d7 and 7#c77;,b7 of subsection 7b7 which are required to be amortized shall be considered fully amortized for purposes of such paragraphs4 7#g7 ,full-funding limitation ,for purposes of paragraph 7#f71 the term full-funding limitation means the excess 7if any7 of-- 7,a7 the accrued liability 7including normal cost7 under the plan 7determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan71 over 7,b7 the lesser of-- 7i7 the fair market value of the plan's assets1 or 7ii7 the value of such assets determined under paragraph 7#b74 7,c7 ,minimum amount 7i7 ,in general ,in no event shall the full-funding limitation determined under subparagraph 7,a7 be less than the excess 7if any7 of-- 7,i7 #ij percent of the current liability 7determined without regard to paragraph 7#d7 of subsection 7h77 of the plan 7including the expected increase in such current liability due to benefits accruing during the plan year71 over 7,,ii7 the value of the plan's assets determined under paragraph 7#b74 7ii7 ,assets ,for purposes of clause 7i71 assets shall not be reduced by any credit balance in the funding standard account4 7#h7 ,annual valuation 7,a7 ,in general ,for purposes of this section1 a determination of experience gains and losses and a valuation of the plan's liability shall be made not less frequently than once every year1 except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the ,secretary of the ,treasury4 7,b7 ,valuation date 7i7 ,current year ,except as provided in clause 7ii71 the valuation referred to in subparagraph 7,a7 shall be made as of a date within the plan year to which the valuation refers or within one month prior to the beginning of such year4 7ii7 ,use of prior year valuation ,the valuation referred to in subparagraph 7,a7 may be made as of a date within the plan year prior to the year to which the valuation refers if1 as of such date1 the value of the assets of the plan are not less than #ajj percent of the plan's current liability4 7iii7 ,adjustments ,information under clause 7ii7 shall1 in accordance with regulations1 be actuarially adjusted to reflect significant differences in participants4 7iv7 ,limitation ,a change in funding method to use a prior year valuation1 as provided in clause 7ii71 may not be made unless as of the valuation date within the prior plan year1 the value of the assets of the plan are not less than #abe percent of the plan's current liability4 7#i7 ,time when certain contributions deemed made ,for purposes of this section1 any contributions for a plan year made by an employer during the period-- 7,a7 beginning on the day after the last day of such plan year1 and 7,b7 ending on the day which is #h months after the close of the plan year1 shall be deemed to have been made on such last day4 7#aj7 ,anticipation of benefit increases effective in the future ,in determining projected benefits1 the funding method of a collectively bargained ,,csec plan described in section #dac7;a7 of the ,internal ,revenue ,code of #aihf shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan4 7d7 ,extension of amortization periods ,the period of years required to amortize any unfunded liability 7described in any clause of subsection 7b77#b77;,b77 of any plan may be extended by the ,secretary of the ,treasury for a period of time 7not in excess of #aj years7 if such ,secretary determines that such extension would carry out the purposes of this ,act and provide adequate protection for participants under the plan and their beneficiaries1 and if such ,secretary determines that the failure to permit such extension would result in-- 7#a7 a substantial risk to the voluntary continuation of the plan1 or 7#b7 a substantial curtailment of pension benefit levels or employee compensation4 7e7 ,alternative minimum funding standard 7#a7 ,in general ,a ,,csec plan which uses a funding method that requires contributions in all years not less than those required under the entry age normal funding method may maintain an alternative minimum funding standard account for any plan year4 ,such account shall be credited and charged solely as provided in this subsection4 7#b7 ,charges and credits to account ,for a plan year the alternative minimum funding standard account shall be-- 7,a7 charged with the sum of-- 7i7 the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method1 7ii7 the excess1 if any1 of the present value of accrued benefits under the plan over the fair market value of the assets1 and 7iii7 an amount equal to the excess 7if any7 of credits to the alternative minimum standard account for all prior plan years over charges to such account for all such years1 and 7,b7 credited with the amount considered contributed by the employer to or under the plan for the plan year4 7#c7 ,interest ,the alternative minimum funding standard account 7and items therein7 shall be charged or credited with interest in the manner provided under subsection 7b77#e7 with respect to the funding standard account4 7f7 ,quarterly contributions required 7#a7 ,in general ,if a ,,csec plan which has a funded current liability percentage for the preceding plan year of less than #ajj percent fails to pay the full amount of a required installment for the plan year1 then the rate of interest charged to the funding standard account under subsection 7b77#e7 with respect to the amount of the underpayment for the period of the underpayment shall be equal to the greater of-- 7,a7 #age percent of the ,federal mid-term rate 7as in effect under section #abgd of the ,internal ,revenue ,code of #aihf for the #ast month of such plan year71 or 7,b7 the rate of interest used under the plan in determining costs4 7#b7 ,amount of underpayment1 period of underpayment ,for purposes of paragraph 7#a7-- 7,a7 ,amount ,the amount of the underpayment shall be the excess of-- 7i7 the required installment1 over 7ii7 the amount 7if any7 of the installment contributed to or under the plan on or before the due date for the installment4 7,b7 ,period of underpayment ,the period for which interest is charged under this subsection with regard 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 7determined without regard to subsection 7c77#i774 7,c7 ,order of crediting contributions ,for purposes of subparagraph 7,a77ii71 contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid4 7#c7 ,number of required installments2 due dates ,for purposes of this subsection-- 7,a7 ,payable in #d installments ,there shall be #d required installments for each plan year4 7,b7 ,time for payment of installments ,in the case of the following required installments3,the due date is3#ast,april #ae #bnd,july #ae #crd,october #ae #dth,january #ae of the following year4 7#d7 ,amount of required installment ,for purposes of this subsection-- 7,a7 ,in general ,the amount of any required installment shall be #be percent of the required annual payment4 7,b7 ,required annual payment ,for purposes of subparagraph 7,a71 the term required annual payment means the lesser of-- 7i7 #ij percent of the amount required to be contributed to or under the plan by the employer for the plan year under section #cjb 7without regard to any waiver under subsection 7c7 thereof71 or 7ii7 #ajj percent of the amount so required for the preceding plan year4 ,clause 7ii7 shall not apply if the preceding plan year was not a year of #ab months4 7#e7 ,liquidity requirement 7,a7 ,in general ,a plan to which this paragraph applies shall be treated as failing to pay the full amount of any required installment to the extent that the value of the liquid assets paid in such installment is less than the liquidity shortfall 7whether or not such liquidity shortfall exceeds the amount of such installment required to be paid but for this paragraph74 7,b7 ,plans to which paragraph ,applies ,this paragraph shall apply to a ,,csec plan other than a plan described in section #cjb7;d77#f77;,a7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf7 which-- 7i7 is required to pay installments under this subsection for a plan year1 and 7ii7 has a liquidity shortfall for any quarter during such plan year4 7,c7 ,period of underpayment ,for purposes of paragraph 7#a71 any portion of an installment that is treated as not paid under subparagraph 7,a7 shall continue to be treated as unpaid until the close of the quarter in which the due date for such installment occurs4 7,d7 ,limitation on increase ,if the amount of any required installment is increased by reason of subparagraph 7,a71 in no event shall such increase exceed the amount which1 when added to prior installments for the plan year1 is necessary to increase the funded current liability percentage 7taking into account the expected increase in current liability due to benefits accruing during the plan year7 to #ajj percent4 7,e7 ,definitions ,for purposes of this paragraph-- 7i7 ,liquidity shortfall ,the term liquidity shortfall means1 with respect to any required installment1 an amount equal to the excess 7as of the last day of the quarter for which such installment is made7 of the base amount with respect to such quarter over the value 7as of such last day7 of the plan's liquid assets4 7ii7 ,base amount 7,i7 ,in general ,the term base amount means1 with respect to any quarter1 an amount equal to #c times the sum of the adjusted disbursements from the plan for the #ab months ending on the last day of such quarter4 7,,ii7 ,special rule ,if the amount determined under subclause 7,i7 exceeds an amount equal to #b times the sum of the adjusted disbursements from the plan for the #cf months ending on the last day of the quarter and an enrolled actuary certifies to the satisfaction of the ,secretary of the ,treasury that such excess is the result of nonrecurring circumstances1 the base amount with respect to such quarter shall be determined without regard to amounts related to those nonrecurring circumstances4 7iii7 ,disbursements from the plan ,the term disbursements from the plan means all disbursements from the trust1 including purchases of annuities1 payments of single sums and other benefits1 and administrative expenses4 7iv7 ,adjusted disbursements ,the term adjusted disbursements means disbursements from the plan reduced by the product of-- 7,i7 the plan's funded current liability percentage for the plan year1 and 7,,ii7 the sum of the purchases of annuities1 payments of single sums1 and such other disbursements as the ,secretary of the ,treasury shall provide in regulations4 7v7 ,liquid assets ,the term liquid assets means cash1 marketable securities and such other assets as specified by the ,secretary of the ,treasury in regulations4 7vi7 ,quarter ,the term quarter means1 with respect to any required installment1 the #c-month period preceding the month in which the due date for such installment occurs4 7,f7 ,regulations ,the ,secretary of the ,treasury may prescribe such regulations as are necessary to carry out this paragraph4 7#f7 ,fiscal years and short years 7,a7 ,fiscal years ,in applying this subsection to a plan year beginning on any date other than ,january #a1 there shall be substituted for the months specified in this subsection1 the months which correspond thereto4 7,b7 ,short plan year ,this subsection shall be applied to plan years of less than #ab months in accordance with regulations prescribed by the ,secretary of the ,treasury4 7g7 ,imposition of lien where failure ,to make required contributions 7#a7 ,in general ,in the case of a plan to which this section applies1 if-- 7,a7 any person fails to make a required installment under subsection 7f7 or any other payment required under this section before the due date for such installment or other payment1 and 7,b7 the unpaid balance of such installment or other payment 7including interest71 when added to the aggregate unpaid balance of all preceding such installments or other payments for which payment was not made before the due date 7including interest71 exceeds #a1jjj1jjj1 then there shall be a lien in favor of the plan in the amount determined under paragraph 7#c7 upon all property and rights to property1 whether real or personal1 belonging to such person and any other person who is a member of the same controlled group of which such person is a member4 7#b7 ,plans to which subsection ,applies ,this subsection shall apply to a ,,csec plan for any plan year for which the funded current liability percentage of such plan is less than #ajj percent4 ,this subsection shall not apply to any plan to which section #djba does not apply 7as such section is in effect on the date of the enactment of the ,retirement ,protection ,act of #aiid74 7#c7 ,amount of lien ,for purposes of paragraph 7#a71 the amount of the lien shall be equal to the aggregate unpaid balance of required installments and other payments required under this section 7including interest7-- 7,a7 for plan years beginning after #aihg1 and 7,b7 for which payment has not been made before the due date4 7#d7 ,notice of failure2 lien 7,a7 ,notice of failure ,a person committing a failure described in paragraph 7#a7 shall notify the ,pension ,benefit ,guaranty ,corporation of such failure within #aj days of the due date for the required installment or other payment4 7,b7 ,period of lien ,the lien imposed by paragraph 7#a7 shall arise on the due date for the required installment or other payment and shall continue until the last day of the first plan year in which the plan ceases to be described in paragraph 7#a77;,b74 ,such lien shall continue to run without regard to whether such plan continues to be described in paragraph 7#b7 during the period referred to in the preceding sentence4 7,c7 ,certain rules to ,apply ,any amount with respect to which a lien is imposed under paragraph 7#a7 shall be treated as taxes due and owing the ,united ,states and rules similar to the rules of subsections 7c71 7d71 and 7e7 of section #djfh shall apply with respect to a lien imposed by subsection 7a7 and the amount with respect to such lien4 7#e7 ,enforcement ,any lien created under paragraph 7#a7 may be perfected and enforced only by the ,pension ,benefit ,guaranty ,corporation1 or at the direction of the ,pension ,benefit ,guaranty ,corporation1 by any contributing employer 7or any member of the controlled group of the contributing employer74 7#f7 ,definitions ,for purposes of this subsection-- 7,a7 ,due date2 required installment ,the terms due date and required installment have the meanings given such terms by subsection 7f71 except that in the case of a payment other than a required installment1 the due date shall be the date such payment is required to be made under this section4 7,b7 ,controlled group ,the term controlled group means any group treated as a single employer under subsections 7b71 7c71 7m71 and 7o7 of section #dad of the ,internal ,revenue ,code of #aihf4 7h7 ,current liability ,for purposes of this section-- 7#a7 ,in general ,the term current liability means all liabilities to employees and their beneficiaries under the plan4 7#b7 ,treatment of unpredictable contingent event benefits 7,a7 ,in general ,for purposes of paragraph 7#a71 any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs4 7,b7 ,unpredictable contingent event benefit ,the term unpredictable contingent event benefit means any benefit contingent on an event other than-- 7i7 age1 service1 compensation1 death1 or disability1 or 7ii7 an event which is reasonably and reliably predictable 7as determined by the ,secretary of the ,treasury74 7#c7 ,interest rate and mortality assumptions used 7,a7 ,interest rate ,the rate of interest used to determine current liability under this section shall be the third segment rate determined under section #cjc7;h77#b77;,c74 7,b7 ,mortality tables 7i7 ,secretarial authority ,the ,secretary of the ,treasury may by regulation prescribe mortality tables to be used in determining current liability under this subsection4 ,such tables shall be based upon the actual experience of pension plans and projected trends in such experience4 ,in prescribing such tables1 the ,secretary of the ,treasury shall take into account results of available independent studies of mortality of individuals covered by pension plans4 7ii7 ,periodic review ,the ,secretary of the ,treasury shall periodically 7at least every #e years7 review any tables in effect under this subsection and shall1 to the extent the ,secretary of the ,treasury determines necessary1 by regulation update the tables to reflect the actual experience of pension plans and projected trends in such experience4 7,c7 ,separate mortality tables for the disabled ,notwithstanding subparagraph 7,b7-- 7i7 ,in general ,in the case of plan years beginning after ,december #ca1 #aiie1 the ,secretary of the ,treasury shall establish mortality tables which may be used 7in lieu of the tables under subparagraph 7,b77 to determine current liability under this subsection for individuals who are entitled to benefits under the plan on account of disability4 ,the ,secretary of the ,treasury shall establish separate tables for individuals whose disabilities occur in plan years beginning before ,january #a1 #aiie1 and for individuals whose disabilities occur in plan years beginning on or after such date4 7ii7 ,special rule for disabilities occurring after #aiid ,in the case of disabilities occurring in plan years beginning after ,december #ca1 #aiid1 the tables under clause 7i7 shall apply only with respect to individuals described in such subclause who are disabled within the meaning of title ,,ii of the ,social ,security ,act and the regulations thereunder4 7#d7 ,certain service disregarded 7,a7 ,in general ,in the case of a participant to whom this paragraph applies1 only the applicable percentage of the years of service before such individual became a participant shall be taken into account in computing the current liability of the plan4 7,b7 ,applicable percentage ,for purposes of this subparagraph1 the applicable percentage shall be determined as follows3 ,if the years of participation are3,the applicable percentage is3#abjbdjcfjdhje or more#ajj4 7,c7 ,participants to whom paragraph ,applies ,this subparagraph shall apply to any participant who1 at the time of becoming a participant-- 7i7 has not accrued any other benefit under any defined benefit plan 7whether or not terminated7 maintained by the employer or a member of the same controlled group of which the employer is a member1 7ii7 who first becomes a participant under the plan in a plan year beginning after ,december #ca1 #aihg1 and 7iii7 has years of service greater than the minimum years of service necessary for eligibility to participate in the plan4 7,d7 ,election ,an employer may elect not to have this subparagraph apply4 ,such an election1 once made1 may be revoked only with the consent of the ,secretary of the ,treasury4 7i7 ,funded current liability percentage ,for purposes of this section1 the term funded current liability percentage means1 with respect to any plan year1 the percentage which-- 7#a7 the value of the plan's assets determined under subsection 7c77#b71 is of 7#b7 the current liability under the plan4 7j7 ,funding restoration status ,notwithstanding any other provisions of this section-- 7#a7 ,normal cost payment 7,a7 ,in general ,in the case of a ,,csec plan that is in funding restoration status for a plan year1 for purposes of section #cjb1 the term accumulated funding deficiency means1 for such plan year1 the greater of-- 7i7 the amount described in subsection 7a71 or 7ii7 the excess of the normal cost of the plan for the plan year over the amount actually contributed to or under the plan for the plan year4 7,b7 ,normal cost ,in the case of a ,,csec plan that uses a spread gain funding method1 for purposes of this subsection1 the term normal cost means normal cost as determined under the entry age normal funding method4 7#b7 ,plan amendments ,in the case of a ,,csec plan that is in funding restoration status for a plan year1 no amendment to such plan may take effect during such plan year if such amendment has the effect of increasing liabilities of the plan by means of increases in benefits1 establishment of new benefits1 changing the rate of benefit accrual1 or changing the rate at which benefits become nonforfeitable4 ,this paragraph shall not apply to any plan amendment that is required to comply with any applicable law4 ,this paragraph shall cease to apply with respect to any plan year1 effective as of the first day of the plan year 7or if later1 the effective date of the amendment7 upon payment by the plan sponsor of a contribution to the plan 7in addition to any contribution required under this section without regard to this paragraph7 in an amount equal to the increase in the funding liability of the plan attributable to the plan amendment4 7#c7 ,funding restoration plan ,the sponsor of a ,,csec plan shall establish a written funding restoration plan within #ahj days of the receipt by the plan sponsor of a certification from the plan actuary that the plan is in funding restoration status for a plan year4 ,such funding restoration plan shall consist of actions that are calculated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to increase the plan's funded percentage to #ajj percent over a period that is not longer than the greater of #g years or the shortest amount of time practicable4 ,such funding restoration plan shall take into account contributions required under this section 7without regard to this paragraph74 ,if a plan remains in funding restoration status for #b or more years1 such funding restoration plan shall be updated each year after the #ast such year within #ahj days of receipt by the plan sponsor of a certification from the plan actuary that the plan remains in funding restoration status for the plan year4 7#d7 ,annual certification by plan actuary ,not later than the #ijth day of each plan year of a ,,csec plan1 the plan actuary shall certify to the plan sponsor whether or not the plan is in funding restoration status for the plan year1 based on the plan's funded percentage as of the beginning of the plan year4 ,for this purpose1 the actuary may conclusively rely on an estimate of-- 7,a7 the plan's funding liability1 based on the funding liability of the plan for the preceding plan year and on reasonable actuarial estimates1 assumptions1 and methods1 and 7,b7 the amount of any contributions reasonably anticipated to be made for the preceding plan year4 ,contributions described in subparagraph 7,b7 shall be taken into account in determining the plan's funded percentage as of the beginning of the plan year4 7#e7 ,definitions ,for purposes of this subsection-- 7,a7 ,funding restoration status ,a ,,csec plan shall be treated as in funding restoration status for a plan year if the plan's funded percentage as of the beginning of such plan year is less than #hj percent4 7,b7 ,funded percentage ,the term funded percentage means the ratio 7expressed as a percentage7 which-- 7i7 the value of plan assets 7as determined under subsection 7c77#b771 bears to 7ii7 the plan's funding liability4 7,c7 ,funding liability ,the term funding liability for a plan year means the present value of all benefits accrued or earned under the plan as of the beginning of the plan year1 based on the assumptions used by the plan pursuant to this section1 including the interest rate described in subsection 7b77#e77;,a7 7without regard to subsection 7b77#e77;,b774 7,d7 ,spread gain funding method ,the term spread gain funding method has the meaning given such term under rules and forms issued by the ,secretary of the ,treasury4 4 7b7 ,separate rules for csec plans 7#a7 ,in general ,paragraph 7#b7 of section #cjb7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhb7;a77 is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by inserting at the end thereof the following new subparagraph3 7,d7 in the case of a ,,csec plan1 the employers make contributions to or under the plan for any plan year which1 in the aggregate1 are sufficient to ensure that the plan does not have an accumulated funding deficiency under section #cjf as of the end of the plan year4 4 7#b7 ,conforming amendments ,section #cjb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhb7 is amended-- 7,a7 by striking multiemployer plan the first place it appears in clause 7i7 of subsection 7c77#a77;,a7 and the last place it appears in paragraph 7#b7 of subsection 7d71 and inserting multiemployer plan or a ,,csec plan1 7,b7 by striking #cjc7;j7 in paragraph 7#a7 of subsection 7b7 and inserting #cjc7;j7 or under section #cjf7;f71 7,c7 7i7 by striking and at the end of clause 7i7 of subsection 7c77#a77;,b71 7ii7 by striking the period at the end of clause 7ii7 of subsection 7c77#a77;,b71 and inserting 1 and1 and 7iii7 by inserting the following new clause after clause 7ii7 of subsection 7c77#a77;,b73 7iii7 in the case of a ,,csec plan1 the funding standard account shall be credited under section #cjf7;b77#c77;,c7 with the amount of the waived funding deficiency and such amount shall be amortized as required under section #cjf7;b77#b77;,c74 1 7,d7 by striking under paragraph 7#a7 in clause 7i7 of subsection 7c77#d77;,a7 and inserting under paragraph 7#a7 or for granting an extension under section #cjf7;d71 7,e7 by striking waiver under this subsection in subparagraph 7,b7 of subsection 7c77#d7 and inserting waiver under this subsection or an extension under #cjf7;d71 7,f7 by striking waiver or modification in subclause 7,i7 of subsection 7c77#d77;,b77i7 and inserting waiver1 modification1 or extension1 7,g7 by striking waivers in the heading of subsection 7c77#d77;,c7 and of clause 7ii7 of subsection 7c77#d77;,c7 and inserting waivers or extensions1 7,h7 by striking section #cjd7;d7 in subparagraph 7,a7 of subsection 7c77#g7 and in paragraph 7#b7 of subsection 7d7 and inserting section #cjd7;d7 or section #cjf7;d71 7,i7 by striking and at the end of subclause 7,i7 of subsection 7c77#d77;,c77i7 and adding or the accumulated funding deficiency under section #cjf1 whichever is applicable11 7,j7 by striking #cjc7;e77#b71 in subclause 7,,ii7 of subsection 7c77#d77;,c77i7 and inserting #cjc7;e77#b7 or #cjf7;b77#b77;,c71 whichever is applicable1 and1 7,k7 by adding immediately after subclause 7,,ii7 of subsection 7c77#d77;,c77i7 the following new subclause3 7,,iii7 the total amounts not paid by reason of an extension in effect under section #cjf7;d71 1 7,l7 by striking for waivers of in clause 7ii7 of subsection 7c77#d77;,c7 and inserting for waivers or extensions with respect to1 and 7,m7 by striking single-employer plan in subparagraph 7,a7 of subsection 7a77#b7 and in clause 7i7 of subsection 7c77#a77;,b7 and inserting single-employer plan 7other than a ,,csec plan74 7#c7 ,benefit restrictions ,subsection 7g7 of section #bjf of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7 is amended by adding at the end thereof the following new paragraph3 7#ab7 ,,csec plans ,this subsection shall not apply to a ,,csec plan 7as defined in section #baj7;f774 4 7#d7 ,benefit increases ,paragraph 7#c7 of section #bjd7;i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajed7;i77 is amended by striking multiemployer plans and inserting multiemployer plans or ,,csec plans4 7#e7 ,section #ajc ,subparagraph 7,b7 of section #ajc7;d77#h7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7;d77#h77 is amended by striking #cjc7;h7 and #cjd7;c77#c7 and inserting #cjc7;h71 #cjd7;c77#c71 and #cjf7;c77#c74 7#f7 ,section #ejb ,subsection 7c7 of section #ejb of the ,employee ,retirement ,income ,security ,act of #aigd is amended-- 7,a7 by redesignating the last paragraph as paragraph 7#aa71 and 7,b7 by adding at the end the following new paragraph3 7#ab7 ,the ,secretary may assess a civil penalty against any sponsor of a ,,csec plan of up to #ajj a day from the date of the plan sponsor's failure to comply with the requirements of section #cjf7;j77#c7 to establish or update a funding restoration plan4 4 7#g7 ,section #djjc ,subparagraph 7,b7 of section #djjc7;e77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjc7;e77#a77 is amended by striking #cjc7k77#a77;,a7 and 7,b7 of this ,act or section #dcj7k77#a77;,a7 and 7,b7 of the ,internal ,revenue ,code of #aihf and inserting #cjc7k77#a77;,a7 and 7,b7 or #cjf7;g77#a77;,a7 and 7,b7 of this ,act or section #dcj7k77#a77;,a7 and 7,b7 or #dcc7;g77#a77;,a7 and 7,b7 of the ,internal ,revenue ,code of #aihf4 7#h7 ,section #djaj ,paragraph 7#b7 of section #djaj7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acaj7;b77 is amended by striking #cjc7k77#a77;,a7 and 7,b7 of this ,act or section #dcj7k77#a77;,a7 and 7,b7 of the ,internal ,revenue ,code of #aihf and inserting #cjc7k77#a77;,a7 and 7,b7 or #cjf7;g77#a77;,a7 and 7,b7 of this ,act or section #dcj7k77#a77;,a7 and 7,b7 or #dcc7;g77#a77;,a7 and 7,b7 of the ,internal ,revenue ,code of #aihf4 7#i7 ,section #djga ,section #djga of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acga7 is amended by striking section #cjc7k77#d7 and inserting section #cjc7k77#d7 or #cjf7;g77#d74 #ajc4 ,elections 7a7 ,election not ,to be treated as a ,,csec plan ,subsection 7f7 of section #baj of the ,employee ,retirement ,income ,security ,act of #aigd1 as added by section #aja1 is amended by adding at the end the following new paragraph3 7#c7 ,election 7,a7 ,in general ,if a plan falls within the definition of a ,,csec plan under this subsection 7without regard to this paragraph71 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 ,december #ca1 #bjac1 not to be treated as a ,,csec plan4 ,an election under the preceding sentence shall take effect for such plan year and1 once made1 may be revoked only with the consent of the ,secretary of the ,treasury4 7,b7 ,special rule ,if a plan described in subparagraph 7,a7 is treated as a ,,csec plan1 section #ajd of the ,pension ,protection ,act of #bjjf1 as amended by the ,preservation of ,access to ,care for ,medicare ,beneficiaries and ,pension ,relief ,act of #bjaj1 shall cease to apply to such plan as of the first date as of which such plan is treated as a ,,csec plan4 4 7b7 ,election ,to cease ,to be treated as an eligible charity plan ,subsection 7d7 of section #ajd of the ,pension ,protection ,act of #bjjf1 as added by section #bjb of the ,preservation of ,access to ,care for ,medicare ,beneficiaries and ,pension ,relief ,act of #bjaj1 is amended-- 7#a7 by striking ,for purposes of and inserting 7#a7 ,in general4--,for purposes of1 and 7#b7 by adding at the end the following3 7#b7 ,election not to be an eligible charity plan ,a plan sponsor may elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after ,december #ca1 #bjac4 ,such election shall be made at such time and in such form and manner as shall be prescribed by the ,secretary of the ,treasury4 ,any such election may be revoked only with the consent of the ,secretary of the ,treasury4 7#c7 ,election to use funding options available to other plan sponsors 7,a7 ,a plan sponsor that makes the election described in paragraph 7#b7 may elect for a plan to apply the rules described in subparagraphs 7,b71 7,c71 and 7,d7 for plan years beginning after ,december #ca1 #bjac4 ,such election shall be made at such time and in such form and manner as shall be prescribed by the ,secretary of the ,treasury4 ,any such election may be revoked only with the consent of the ,secretary of the ,treasury4 7,b7 ,under the rules described in this subparagraph1 for the first plan year beginning after ,december #ca1 #bjac1 a plan has-- 7i7 an #aa-year shortfall amortization base1 7ii7 a #ab-year shortfall amortization base1 and 7iii7 a #g-year shortfall amortization base4 7,c7 ,under the rules described in this subparagraph1 section #cjc7;c77#b77;,a7 and 7,b7 of the ,employee ,retirement ,income ,security ,act of #aigd1 and section #dcj7;c77#b77;,a7 and 7,b7 of the ,internal ,revenue ,code of #aihf shall be applied by-- 7i7 in the case of an #aa-year shortfall amortization base1 substituting #aa-plan-year period for #g-plan-year period wherever such phrase appears1 and 7ii7 in the case of a #ab-year shortfall amortization base1 substituting #ab-plan-year period for #g-plan-year period wherever such phrase appears4 7,d7 ,under the rules described in this subparagraph1 section #cjc7;c77#g7 of the ,employee ,retirement ,income ,security ,act of #aigd and section #dcj7;c77#g7 of the ,internal ,revenue ,code of #aihf shall apply to a plan for which an election has been made under subparagraph 7,a74 ,such provisions shall apply in the following manner3 7i7 ,the first plan year beginning after ,december #ca1 #bjac1 shall be treated as an election year1 and no other plan years shall be so treated4 7ii7 ,all references in section #cjc7;c77#g7 of such ,act and section #dcj7;c77#g7 of such ,code to ,february #bh1 #bjaj or ,march #a1 #bjaj shall be treated as references to ,february #bh1 #bjac or ,march #a1 #bjac1 respectively4 7,e7 ,for purposes of this paragraph1 the #aa-year amortization base is an amount1 determined for the first plan year beginning after ,december #ca1 #bjac1 equal to the unamortized principal amount of the shortfall amortization base 7as defined in section #cjc7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd and section #dcj7;c77#c7 of the ,internal ,revenue ,code of #aihf7 that would have applied to the plan for the first plan beginning after ,december #ca1 #bjji1 if-- 7i7 the plan had never been an eligible charity plan1 7ii7 the plan sponsor had made the election described in section #cjc7;c77#b77;,d77i7 of the ,employee ,retirement ,income ,security ,act of #aigd and in section #dcj7;c77#b77;,d77i7 of the ,internal ,revenue ,code of #aihf to have section #cjc7;c77#b77;,d77i7 of such ,act and section #dcj7;c77#b77;,d77iii7 of such ,code apply with respect to the shortfall amortization base for the first plan year beginning after ,december #ca1 #bjji1 and 7iii7 no event had occurred under paragraph 7#f7 or 7#g7 of section #cjc7;c7 of such ,act or paragraph 7#f7 or 7#g7 of section #dcj7;c7 of such ,code that1 as of the first day of the first plan year beginning after ,december #ca1 #bjac1 would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after ,december #ca1 #bjji4 7,f7 ,for purposes of this paragraph1 the #ab-year amortization base is an amount1 determined for the first plan year beginning after ,december #ca1 #bjac1 equal to the unamortized principal amount of the shortfall amortization base 7as defined in section #cjc7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd and section #dcj7;c77#c7 of the ,internal ,revenue ,code of #aihf7 that would have applied to the plan for the first plan beginning after ,december #ca1 #bjaj1 if-- 7i7 the plan had never been an eligible charity plan1 7ii7 the plan sponsor had made the election described in section #cjc7;c77#b77;,d77i7 of the ,employee ,retirement ,income ,security ,act of #aigd and in section #dcj7;c77#b77;,d77i7 of the ,internal ,revenue ,code of #aihf to have section #cjc7;c77#b77;,d77i7 of such ,act and section #dcj7;c77#b77;,d77iii7 of such ,code apply with respect to the shortfall amortization base for the first plan year beginning after ,december #ca1 #bjaj1 and 7iii7 no event had occurred under paragraph 7#f7 or 7#g7 of section #cjc7;c7 of such ,act or paragraph 7#f7 or 7#g7 of section #dcj7;c7 of such ,code that1 as of the first day of the first plan year beginning after ,december #ca1 #bjac1 would have modified the shortfall amortization base or the shortfall amortization installments with respect to the first plan year beginning after ,december #ca1 #bjaj4 7,g7 ,for purposes of this paragraph1 the #g-year shortfall amortization base is an amount1 determined for the first plan year beginning after ,december #ca1 #bjac1 equal to-- 7i7 the shortfall amortization base for the first plan year beginning after ,december #ca1 #bjac1 without regard to this paragraph1 minus 7ii7 the sum of the #aa-year shortfall amortization base and the #ab-year shortfall amortization base4 7#d7 ,retroactive election ,not later than ,december #ca1 #bjad1 a plan sponsor may make a one-time1 irrevocable1 retroactive election to not be treated as an eligible charity plan4 ,such election shall be effective for plan years beginning after ,december #ca1 #bjjg1 and shall be made by providing reasonable notice to the ,secretary of the ,treasury4 4 7c7 ,deemed election ,for purposes of the ,internal ,revenue ,code of #aihf1 sections #d7;b77#b7 and #djba7;b77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd1 and all other purposes1 a plan shall be deemed to have made an irrevocable election under section #daj7;d7 of the ,internal ,revenue ,code of #aihf if-- 7#a7 the plan was established before ,january #a1 #bjad2 7#b7 the plan falls within the definition of a ,,csec plan2 7#c7 the plan sponsor does not make an election under section #baj7;f77#c77;,a7 of the ,employee ,retirement ,income ,security ,act of #aigd and section #dad7y77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act2 and 7#d7 the plan1 plan sponsor1 administrator1 or fiduciary remits one or more premium payments for the plan to the ,pension ,benefit ,guaranty ,corporation for a plan year beginning after ,december #ca1 #bjac4 7d7 ,effective date ,the amendments made by this section shall apply as of the date of enactment of this ,act4 #ajd4 ,transparency 7a7 ,notice to participants 7#a7 ,in general ,paragraph 7#b7 of section #aja7;f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;f77 is amended by adding at the end the following new subparagraph3 7,e7 ,effect of csec plan rules on plan funding ,in the case of a ,,csec plan1 each notice under paragraph 7#a7 shall include-- 7i7 a statement that different rules apply to ,,csec plans than apply to single-employer plans1 7ii7 for the first #b plan years beginning after ,december #ca1 #bjac1 a statement that1 as a result of changes in the law made by the ,cooperative and ,small ,employer ,charity ,pension ,flexibility ,act1 the contributions to the plan may have changed1 and 7iii7 in the case of a ,,csec plan that is in funding restoration status for the plan year1 a statement that the plan is in funding restoration status for such plan year4 ,a copy of the statement required under clause 7iii7 shall be provided to the ,secretary1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation4 4 7#b7 ,model notice ,the ,secretary of ,labor may modify the model notice required to be published under section #eja7;c7 of the ,pension ,protection ,act of #bjjf to include the information described in section #aja7;f77#b77;,e7 of the ,employee ,retirement ,income ,security ,act of #aigd1 as added by this subsection4 7b7 ,notice of failure ,to meet minimum funding standards 7#a7 ,pending waivers ,paragraph 7#b7 of section #aja7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;d77 is amended by striking #cjc and inserting #cjc or #cjf4 7#b7 ,definitions ,paragraph 7#c7 of section #aja7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#ba ,u4,s4,c4 #ajba7;d77 is amended by striking #cjc7;j7 and inserting #cjc7;j7 or #cjf7;f71 whichever is applicable4 7c7 ,additional reporting requirements ,section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7 is amended by adding at the end the following new subsection3 7g7 ,additional information with respect to multiple employer plans ,with respect to any multiple employer plan1 an annual report under this section for a plan year shall include a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year4 4 #aje4 ,sponsor education and assistance 7a7 ,definition ,in this section1 the term ,,csec plan has the meaning given that term in subsection 7f77#a7 of section #baj of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajfj7;f77#a77 7as added by this ,act74 7b7 ,education ,the ,participant and ,plan ,sponsor ,advocate established under section #djjd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjd7 shall make itself available to assist ,,csec plan sponsors and participants as part of the duties it performs under the general supervision of the ,board of ,directors under section #djjd7;b7 of such ,act 7#bi ,u4,s4,c4 #acjd7;b774 ,,ii ,amendments to ,internal ,revenue ,code of #aihf #bja4 ,definition of cooperative and small employer charity pension plans ,section #dad of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7y7 ,cooperative and small employer charity pension plans 7#a7 ,in general ,for purposes of this title1 except as provided in this subsection1 a ,,csec plan is a defined benefit plan 7other than a multiemployer plan7-- 7,a7 to which section #ajd of the ,pension ,protection ,act of #bjjf applies1 without regard to-- 7i7 section #ajd7;a77#b7 of such ,act2 7ii7 the amendments to such section #ajd by section #bjb7;b7 of the ,preservation of ,access to ,care for ,medicare ,beneficiaries and ,pension ,relief ,act of #bjaj2 and 7iii7 paragraph 7#c77;,b72 or 7,b7 that1 as of ,june #be1 #bjaj1 was maintained by more than one employer and all of the employers were organizations described in section #eja7;c77#c74 7#b7 ,aggregation ,all employers that are treated as a single employer under subsection 7b7 or 7c7 shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph 7#a77;,b74 4 #bjb4 ,funding rules applicable to cooperative and small employer charity pension plans 7a7 ,in general ,subpart ,a of part ,,iii of subchapter ,d of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #dcc4 ,minimum funding standards 7a7 ,general rule ,for purposes of section #dab1 the term accumulated funding deficiency for a ,,csec plan means the excess of the total charges to the funding standard account for all plan years 7beginning with the first plan year to which section #dab applies7 over the total credits to such account for such years or1 if less1 the excess of the total charges to the alternative minimum funding standard account for such plan years over the total credits to such account for such years4 7b7 ,funding standard account 7#a7 ,account required ,each plan to which this section applies shall establish and maintain a funding standard account4 ,such account shall be credited and charged solely as provided in this section4 7#b7 ,charges to account ,for a plan year1 the funding standard account shall be charged with the sum of-- 7,a7 the normal cost of the plan for the plan year1 7,b7 the amounts necessary to amortize in equal annual installments 7until fully amortized7-- 7i7 in the case of a plan in existence on ,january #a1 #aigd1 the unfunded past service liability under the plan on the first day of the first plan year to which section #dab applies1 over a period of #dj plan years1 7ii7 in the case of a plan which comes into existence after ,january #a1 #aigd1 but before the first day of the first plan year beginning after ,december #ca1 #bjac1 the unfunded past service liability under the plan on the first day of the first plan year to which section #dab applies1 over a period of #cj plan years1 7iii7 separately1 with respect to each plan year1 the net increase 7if any7 in unfunded past service liability under the plan arising from plan amendments adopted in such year1 over a period of #ae plan years1 7iv7 separately1 with respect to each plan year1 the net experience loss 7if any7 under the plan1 over a period of #e plan years1 and 7v7 separately1 with respect to each plan year1 the net loss 7if any7 resulting from changes in actuarial assumptions used under the plan1 over a period of #aj plan years1 7,c7 the amount necessary to amortize each waived funding deficiency 7within the meaning of section #dab7;c77#c77 for each prior plan year in equal annual installments 7until fully amortized7 over a period of #e plan years1 7,d7 the amount necessary to amortize in equal annual installments 7until fully amortized7 over a period of #e plan years any amount credited to the funding standard account under paragraph 7#c77;,d71 and 7,e7 the amount necessary to amortize in equal annual installments 7until fully amortized7 over a period of #bj years the contributions which would be required to be made under the plan but for the provisions of section #dab7;c77#g77;,a77i77,i7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf74 7#c7 ,credits to account ,for a plan year1 the funding standard account shall be credited with the sum of-- 7,a7 the amount considered contributed by the employer to or under the plan for the plan year1 7,b7 the amount necessary to amortize in equal annual installments 7until fully amortized7-- 7i7 separately1 with respect to each plan year1 the net decrease 7if any7 in unfunded past service liability under the plan arising from plan amendments adopted in such year1 over a period of #ae plan years1 7ii7 separately1 with respect to each plan year1 the net experience gain 7if any7 under the plan1 over a period of #e plan years1 and 7iii7 separately1 with respect to each plan year1 the net gain 7if any7 resulting from changes in actuarial assumptions used under the plan1 over a period of #aj plan years1 7,c7 the amount of the waived funding deficiency 7within the meaning of section #dab7;c77#c77 for the plan year1 and 7,d7 in the case of a plan year for which the accumulated funding deficiency is determined under the funding standard account if such plan year follows a plan year for which such deficiency was determined under the alternative minimum funding standard1 the excess 7if any7 of any debit balance in the funding standard account 7determined without regard to this subparagraph7 over any debit balance in the alternative minimum funding standard account4 7#d7 ,combining and offsetting amounts to be amortized ,under regulations prescribed by the ,secretary1 amounts required to be amortized under paragraph 7#b7 or paragraph 7#c71 as the case may be-- 7,a7 may be combined into one amount under such paragraph to be amortized over a period determined on the basis of the remaining amortization period for all items entering into such combined amount1 and 7,b7 may be offset against amounts required to be amortized under the other such paragraph1 with the resulting amount to be amortized over a period determined on the basis of the remaining amortization periods for all items entering into whichever of the two amounts being offset is the greater4 7#e7 ,interest 7,a7 ,in general ,except as provided in subparagraph 7,b71 the funding standard account 7and items therein7 shall be charged or credited 7as determined under regulations prescribed by the ,secretary7 with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs4 7,b7 ,exception ,the interest rate used for purposes of computing the amortization charge described in subsection 7b77#b77;,c7 or for purposes of any arrangement under subsection 7d7 for any plan year shall be the greater of-- 7i7 #aej percent of the ,federal mid-term rate 7as in effect under section #abgd for the #ast month of such plan year71 or 7ii7 the rate of interest determined under subparagraph 7,a74 7#f7 ,amortization schedules in effect ,amortization schedules for amounts described in paragraphs 7#b7 and 7#c7 that are in effect as of the last day of the last plan year beginning before ,january #a1 #bjad1 by reason of section #ajd of the ,pension ,protection ,act of #bjjf shall remain in effect pursuant to their terms and this section1 except that such amounts shall not be amortized again under this section4 7c7 ,special rules 7#a7 ,determinations to be made under funding method ,for purposes of this section1 normal costs1 accrued liability1 past service liabilities1 and experience gains and losses shall be determined under the funding method used to determine costs under the plan4 7#b7 ,valuation of assets 7,a7 ,in general ,for purposes of this section1 the value of the plan's assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value and which is permitted under regulations prescribed by the ,secretary4 7,b7 ,dedicated bond portfolio ,the ,secretary may by regulations provide that the value of any dedicated bond portfolio of a plan shall be determined by using the interest rate under section #dab7;b77#e7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf74 7#c7 ,actuarial assumptions must be reasonable ,for purposes of this section1 all costs1 liabilities1 rates of interest1 and other factors under the plan shall be determined on the basis of actuarial assumptions and methods-- 7,a7 each of which is reasonable 7taking into account the experience of the plan and reasonable expectations71 and 7,b7 which1 in combination1 offer the actuary's best estimate of anticipated experience under the plan4 7#d7 ,treatment of certain changes as experience gain or loss ,for purposes of this section1 if-- 7,a7 a change in benefits under the ,social ,security ,act or in other retirement benefits created under ,federal or ,state law1 or 7,b7 a change in the definition of the term wages under section #caba or a change in the amount of such wages taken into account under regulations prescribed for purposes of section #dja7;a77#e71 results in an increase or decrease in accrued liability under a plan1 such increase or decrease shall be treated as an experience loss or gain4 7#e7 ,funding method and plan year 7,a7 ,funding methods available ,all funding methods available to ,,csec plans under section #dab 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf7 shall continue to be available under this section4 7,b7 ,changes ,if the funding method for a plan is changed1 the new funding method shall become the funding method used to determine costs and liabilities under the plan only if the change is approved by the ,secretary4 ,if the plan year for a plan is changed1 the new plan year shall become the plan year for the plan only if the change is approved by the ,secretary4 7,c7 ,approval required for certain changes in assumptions by certain single-employer plans subject to additional funding requirement 7i7 ,in general ,no actuarial assumption 7other than the assumptions described in subsection 7h77#c77 used to determine the current liability for a plan to which this subparagraph applies may be changed without the approval of the ,secretary4 7ii7 ,plans to which subparagraph applies ,this subparagraph shall apply to a plan only if-- 7,i7 the plan is a ,,csec plan1 7,,ii7 the aggregate unfunded vested benefits as of the close of the preceding plan year 7as determined under section #djjf7;a77#c77;,e77iii7 of the ,employee ,retirement ,income ,security ,act of #aigd7 of such plan and all other plans maintained by the contributing sponsors 7as defined in section #djja7;a77#ac7 of such ,act7 and members of such sponsors' controlled groups 7as defined in section #djja7;a77#ad7 of such ,act7 which are covered by title ,,iv 7disregarding plans with no unfunded vested benefits7 exceed #ej1jjj1jjj1 and 7,,iii7 the change in assumptions 7determined after taking into account any changes in interest rate and mortality table7 results in a decrease in the funding shortfall of the plan for the current plan year that exceeds #ej1jjj1jjj1 or that exceeds #e1jjj1jjj and that is #e percent or more of the current liability of the plan before such change4 7#f7 ,full funding ,if1 as of the close of a plan year1 a plan would 7without regard to this paragraph7 have an accumulated funding deficiency 7determined without regard to the alternative minimum funding standard account permitted under subsection 7e77 in excess of the full funding limitation-- 7,a7 the funding standard account shall be credited with the amount of such excess1 and 7,b7 all amounts described in paragraphs 7#b77;,b71 7,c71 and 7,d7 and 7#c77;,b7 of subsection 7b7 which are required to be amortized shall be considered fully amortized for purposes of such paragraphs4 7#g7 ,full-funding limitation ,for purposes of paragraph 7#f71 the term full-funding limitation means the excess 7if any7 of-- 7,a7 the accrued liability 7including normal cost7 under the plan 7determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan71 over 7,b7 the lesser of-- 7i7 the fair market value of the plan's assets1 or 7ii7 the value of such assets determined under paragraph 7#b74 7,c7 ,minimum amount 7i7 ,in general ,in no event shall the full-funding limitation determined under subparagraph 7,a7 be less than the excess 7if any7 of-- 7,i7 #ij percent of the current liability 7determined without regard to paragraph 7#d7 of subsection 7h77 of the plan 7including the expected increase in such current liability due to benefits accruing during the plan year71 over 7,,ii7 the value of the plan's assets determined under paragraph 7#b74 7ii7 ,assets ,for purposes of clause 7i71 assets shall not be reduced by any credit balance in the funding standard account4 7#h7 ,annual valuation 7,a7 ,in general ,for purposes of this section1 a determination of experience gains and losses and a valuation of the plan's liability shall be made not less frequently than once every year1 except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the ,secretary4 7,b7 ,valuation date 7i7 ,current year ,except as provided in clause 7ii71 the valuation referred to in subparagraph 7,a7 shall be made as of a date within the plan year to which the valuation refers or within one month prior to the beginning of such year4 7ii7 ,use of prior year valuation ,the valuation referred to in subparagraph 7,a7 may be made as of a date within the plan year prior to the year to which the valuation refers if1 as of such date1 the value of the assets of the plan are not less than #ajj percent of the plan's current liability4 7iii7 ,adjustments ,information under clause 7ii7 shall1 in accordance with regulations1 be actuarially adjusted to reflect significant differences in participants4 7iv7 ,limitation ,a change in funding method to use a prior year valuation1 as provided in clause 7ii71 may not be made unless as of the valuation date within the prior plan year1 the value of the assets of the plan are not less than #abe percent of the plan's current liability4 7#i7 ,time when certain contributions deemed made ,for purposes of this section1 any contributions for a plan year made by an employer during the period-- 7,a7 beginning on the day after the last day of such plan year1 and 7,b7 ending on the day which is #h months after the close of the plan year1 shall be deemed to have been made on such last day4 7#aj7 ,anticipation of benefit increases effective in the future ,in determining projected benefits1 the funding method of a collectively bargained ,,csec plan described in section #dac7;a7 shall anticipate benefit increases scheduled to take effect during the term of the collective bargaining agreement applicable to the plan4 7d7 ,extension of amortization periods ,the period of years required to amortize any unfunded liability 7described in any clause of subsection 7b77#b77;,b77 of any plan may be extended by the ,secretary for a period of time 7not in excess of #aj years7 if the ,secretary determines that such extension would carry out the purposes of the ,employee ,retirement ,income ,security ,act of #aigd and provide adequate protection for participants under the plan and their beneficiaries1 and if the ,secretary determines that the failure to permit such extension would result in-- 7#a7 a substantial risk to the voluntary continuation of the plan1 or 7#b7 a substantial curtailment of pension benefit levels or employee compensation4 7e7 ,alternative minimum funding standard 7#a7 ,in general ,a ,,csec plan which uses a funding method that requires contributions in all years not less than those required under the entry age normal funding method may maintain an alternative minimum funding standard account for any plan year4 ,such account shall be credited and charged solely as provided in this subsection4 7#b7 ,charges and credits to account ,for a plan year the alternative minimum funding standard account shall be-- 7,a7 charged with the sum of-- 7i7 the lesser of normal cost under the funding method used under the plan or normal cost determined under the unit credit method1 7ii7 the excess1 if any1 of the present value of accrued benefits under the plan over the fair market value of the assets1 and 7iii7 an amount equal to the excess 7if any7 of credits to the alternative minimum standard account for all prior plan years over charges to such account for all such years1 and 7,b7 credited with the amount considered contributed by the employer to or under the plan for the plan year4 7#c7 ,interest ,the alternative minimum funding standard account 7and items therein7 shall be charged or credited with interest in the manner provided under subsection 7b77#e7 with respect to the funding standard account4 7f7 ,quarterly contributions required 7#a7 ,in general ,if a ,,csec plan which has a funded current liability percentage for the preceding plan year of less than #ajj percent fails to pay the full amount of a required installment for the plan year1 then the rate of interest charged to the funding standard account under subsection 7b77#e7 with respect to the amount of the underpayment for the period of the underpayment shall be equal to the greater of-- 7,a7 #age percent of the ,federal mid-term rate 7as in effect under section #abgd for the #ast month of such plan year71 or 7,b7 the rate of interest used under the plan in determining costs4 7#b7 ,amount of underpayment1 period of underpayment ,for purposes of paragraph 7#a7-- 7,a7 ,amount ,the amount of the underpayment shall be the excess of-- 7i7 the required installment1 over 7ii7 the amount 7if any7 of the installment contributed to or under the plan on or before the due date for the installment4 7,b7 ,period of underpayment ,the period for which interest is charged under this subsection with regard 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 7determined without regard to subsection 7c77#i774 7,c7 ,order of crediting contributions ,for purposes of subparagraph 7,a77ii71 contributions shall be credited against unpaid required installments in the order in which such installments are required to be paid4 7#c7 ,number of required installments2 due dates ,for purposes of this subsection-- 7,a7 ,payable in #d installments ,there shall be #d required installments for each plan year4 7,b7 ,time for payment of installments ,in the case of the following required installments3,the due date is3#ast,april #ae #bnd,july #ae #crd,october #ae #dth,january #ae of the following year4 7#d7 ,amount of required installment ,for purposes of this subsection-- 7,a7 ,in general ,the amount of any required installment shall be #be percent of the required annual payment4 7,b7 ,required annual payment ,for purposes of subparagraph 7,a71 the term required annual payment means the lesser of-- 7i7 #ij percent of the amount required to be contributed to or under the plan by the employer for the plan year under section #dab 7without regard to any waiver under subsection 7c7 thereof71 or 7ii7 #ajj percent of the amount so required for the preceding plan year4 ,clause 7ii7 shall not apply if the preceding plan year was not a year of #ab months4 7#e7 ,liquidity requirement 7,a7 ,in general ,a plan to which this paragraph applies shall be treated as failing to pay the full amount of any required installment to the extent that the value of the liquid assets paid in such installment is less than the liquidity shortfall 7whether or not such liquidity shortfall exceeds the amount of such installment required to be paid but for this paragraph74 7,b7 ,plans to which paragraph ,applies ,this paragraph shall apply to a ,,csec plan other than a plan described in section #dab7l77#f77;,a7 7as in effect on the day before the enactment of the ,pension ,protection ,act of #bjjf7 which-- 7i7 is required to pay installments under this subsection for a plan year1 and 7ii7 has a liquidity shortfall for any quarter during such plan year4 7,c7 ,period of underpayment ,for purposes of paragraph 7#a71 any portion of an installment that is treated as not paid under subparagraph 7,a7 shall continue to be treated as unpaid until the close of the quarter in which the due date for such installment occurs4 7,d7 ,limitation on increase ,if the amount of any required installment is increased by reason of subparagraph 7,a71 in no event shall such increase exceed the amount which1 when added to prior installments for the plan year1 is necessary to increase the funded current liability percentage 7taking into account the expected increase in current liability due to benefits accruing during the plan year7 to #ajj percent4 7,e7 ,definitions ,for purposes of this paragraph-- 7i7 ,liquidity shortfall ,the term liquidity shortfall means1 with respect to any required installment1 an amount equal to the excess 7as of the last day of the quarter for which such installment is made7 of the base amount with respect to such quarter over the value 7as of such last day7 of the plan's liquid assets4 7ii7 ,base amount 7,i7 ,in general ,the term base amount means1 with respect to any quarter1 an amount equal to #c times the sum of the adjusted disbursements from the plan for the #ab months ending on the last day of such quarter4 7,,ii7 ,special rule ,if the amount determined under subclause 7,i7 exceeds an amount equal to #b times the sum of the adjusted disbursements from the plan for the #cf months ending on the last day of the quarter and an enrolled actuary certifies to the satisfaction of the ,secretary that such excess is the result of nonrecurring circumstances1 the base amount with respect to such quarter shall be determined without regard to amounts related to those nonrecurring circumstances4 7iii7 ,disbursements from the plan ,the term disbursements from the plan means all disbursements from the trust1 including purchases of annuities1 payments of single sums and other benefits1 and administrative expenses4 7iv7 ,adjusted disbursements ,the term adjusted disbursements means disbursements from the plan reduced by the product of-- 7,i7 the plan's funded current liability percentage for the plan year1 and 7,,ii7 the sum of the purchases of annuities1 payments of single sums1 and such other disbursements as the ,secretary shall provide in regulations4 7v7 ,liquid assets ,the term liquid assets means cash1 marketable securities and such other assets as specified by the ,secretary in regulations4 7vi7 ,quarter ,the term quarter means1 with respect to any required installment1 the #c-month period preceding the month in which the due date for such installment occurs4 7,f7 ,regulations ,the ,secretary may prescribe such regulations as are necessary to carry out this paragraph4 7#f7 ,fiscal years and short years 7,a7 ,fiscal years ,in applying this subsection to a plan year beginning on any date other than ,january #a1 there shall be substituted for the months specified in this subsection1 the months which correspond thereto4 7,b7 ,short plan year ,this subsection shall be applied to plan years of less than #ab months in accordance with regulations prescribed by the ,secretary4 7g7 ,imposition of lien where failure ,to make required contributions 7#a7 ,in general ,in the case of a plan to which this section applies1 if-- 7,a7 any person fails to make a required installment under subsection 7f7 or any other payment required under this section before the due date for such installment or other payment1 and 7,b7 the unpaid balance of such installment or other payment 7including interest71 when added to the aggregate unpaid balance of all preceding such installments or other payments for which payment was not made before the due date 7including interest71 exceeds #a1jjj1jjj1 then there shall be a lien in favor of the plan in the amount determined under paragraph 7#c7 upon all property and rights to property1 whether real or personal1 belonging to such person and any other person who is a member of the same controlled group of which such person is a member4 7#b7 ,plans to which subsection ,applies ,this subsection shall apply to a ,,csec plan for any plan year for which the funded current liability percentage of such plan is less than #ajj percent4 ,this subsection shall not apply to any plan to which section #djba of the ,employee ,retirement ,income ,security ,act of #aigd does not apply 7as such section is in effect on the date of the enactment of the ,retirement ,protection ,act of #aiid74 7#c7 ,amount of lien ,for purposes of paragraph 7#a71 the amount of the lien shall be equal to the aggregate unpaid balance of required installments and other payments required under this section 7including interest7-- 7,a7 for plan years beginning after #aihg1 and 7,b7 for which payment has not been made before the due date4 7#d7 ,notice of failure2 lien 7,a7 ,notice of failure ,a person committing a failure described in paragraph 7#a7 shall notify the ,pension ,benefit ,guaranty ,corporation of such failure within #aj days of the due date for the required installment or other payment4 7,b7 ,period of lien ,the lien imposed by paragraph 7#a7 shall arise on the due date for the required installment or other payment and shall continue until the last day of the first plan year in which the plan ceases to be described in paragraph 7#a77;,b74 ,such lien shall continue to run without regard to whether such plan continues to be described in paragraph 7#b7 during the period referred to in the preceding sentence4 7,c7 ,certain rules to ,apply ,any amount with respect to which a lien is imposed under paragraph 7#a7 shall be treated as taxes due and owing the ,united ,states and rules similar to the rules of subsections 7c71 7d71 and 7e7 of section #djfh of the ,employee ,retirement ,income ,security ,act of #aigd shall apply with respect to a lien imposed by subsection 7a7 and the amount with respect to such lien4 7#e7 ,enforcement ,any lien created under paragraph 7#a7 may be perfected and enforced only by the ,pension ,benefit ,guaranty ,corporation1 or at the direction of the ,pension ,benefit ,guaranty ,corporation1 by any contributing employer 7or any member of the controlled group of the contributing employer74 7#f7 ,definitions ,for purposes of this subsection-- 7,a7 ,due date2 required installment ,the terms due date and required installment have the meanings given such terms by subsection 7f71 except that in the case of a payment other than a required installment1 the due date shall be the date such payment is required to be made under this section4 7,b7 ,controlled group ,the term controlled group means any group treated as a single employer under subsections 7b71 7c71 7m71 and 7o7 of section #dad4 7h7 ,current liability ,for purposes of this section-- 7#a7 ,in general ,the term current liability means all liabilities to employees and their beneficiaries under the plan4 7#b7 ,treatment of unpredictable contingent event benefits 7,a7 ,in general ,for purposes of paragraph 7#a71 any unpredictable contingent event benefit shall not be taken into account until the event on which the benefit is contingent occurs4 7,b7 ,unpredictable contingent event benefit ,the term unpredictable contingent event benefit means any benefit contingent on an event other than-- 7i7 age1 service1 compensation1 death1 or disability1 or 7ii7 an event which is reasonably and reliably predictable 7as determined by the ,secretary74 7#c7 ,interest rate and mortality assumptions used 7,a7 ,interest rate ,the rate of interest used to determine current liability under this section shall be the third segment rate determined under section #dcj7;h77#b77;,c74 7,b7 ,mortality tables 7i7 ,secretarial authority ,the ,secretary may by regulation prescribe mortality tables to be used in determining current liability under this subsection4 ,such tables shall be based upon the actual experience of pension plans and projected trends in such experience4 ,in prescribing such tables1 the ,secretary shall take into account results of available independent studies of mortality of individuals covered by pension plans4 7ii7 ,periodic review ,the ,secretary shall periodically 7at least every #e years7 review any tables in effect under this subsection and shall1 to the extent the ,secretary determines necessary1 by regulation update the tables to reflect the actual experience of pension plans and projected trends in such experience4 7,c7 ,separate mortality tables for the disabled ,notwithstanding subparagraph 7,b7-- 7i7 ,in general ,in the case of plan years beginning after ,december #ca1 #aiie1 the ,secretary shall establish mortality tables which may be used 7in lieu of the tables under subparagraph 7,b77 to determine current liability under this subsection for individuals who are entitled to benefits under the plan on account of disability4 ,the ,secretary shall establish separate tables for individuals whose disabilities occur in plan years beginning before ,january #a1 #aiie1 and for individuals whose disabilities occur in plan years beginning on or after such date4 7ii7 ,special rule for disabilities occurring after #aiid ,in the case of disabilities occurring in plan years beginning after ,december #ca1 #aiid1 the tables under clause 7i7 shall apply only with respect to individuals described in such subclause who are disabled within the meaning of title ,,ii of the ,social ,security ,act and the regulations thereunder4 7#d7 ,certain service disregarded 7,a7 ,in general ,in the case of a participant to whom this paragraph applies1 only the applicable percentage of the years of service before such individual became a participant shall be taken into account in computing the current liability of the plan4 7,b7 ,applicable percentage ,for purposes of this subparagraph1 the applicable percentage shall be determined as follows3 ,if the years of participation are3,the applicable percentage is3#abjbdjcfjdhje or more#ajj4 7,c7 ,participants to whom paragraph ,applies ,this subparagraph shall apply to any participant who1 at the time of becoming a participant-- 7i7 has not accrued any other benefit under any defined benefit plan 7whether or not terminated7 maintained by the employer or a member of the same controlled group of which the employer is a member1 7ii7 who first becomes a participant under the plan in a plan year beginning after ,december #ca1 #aihg1 and 7iii7 has years of service greater than the minimum years of service necessary for eligibility to participate in the plan4 7,d7 ,election ,an employer may elect not to have this subparagraph apply4 ,such an election1 once made1 may be revoked only with the consent of the ,secretary4 7i7 ,funded current liability percentage ,for purposes of this section1 the term funded current liability percentage means1 with respect to any plan year1 the percentage which-- 7#a7 the value of the plan's assets determined under subsection 7c77#b71 is of 7#b7 the current liability under the plan4 7j7 ,funding restoration status ,notwithstanding any other provisions of this section-- 7#a7 ,normal cost payment 7,a7 ,in general ,in the case of a ,,csec plan that is in funding restoration status for a plan year1 for purposes of section #dab1 the term accumulated funding deficiency means1 for such plan year1 the greater of-- 7i7 the amount described in subsection 7a71 or 7ii7 the excess of the normal cost of the plan for the plan year over the amount actually contributed to or under the plan for the plan year4 7,b7 ,normal cost ,in the case of a ,,csec plan that uses a spread gain funding method1 for purposes of this subsection1 the term normal cost means normal cost as determined under the entry age normal funding method4 7#b7 ,plan amendments ,in the case of a ,,csec plan that is in funding restoration status for a plan year1 no amendment to such plan may take effect during such plan year if such amendment has the effect of increasing liabilities of the plan by means of increases in benefits1 establishment of new benefits1 changing the rate of benefit accrual1 or changing the rate at which benefits become nonforfeitable4 ,this paragraph shall not apply to any plan amendment that is required to comply with any applicable law4 ,this paragraph shall cease to apply with respect to any plan year1 effective as of the first day of the plan year 7or if later1 the effective date of the amendment7 upon payment by the plan sponsor of a contribution to the plan 7in addition to any contribution required under this section without regard to this paragraph7 in an amount equal to the increase in the funding liability of the plan attributable to the plan amendment4 7#c7 ,funding restoration plan ,the sponsor of a ,,csec plan shall establish a written funding restoration plan within #ahj days of the receipt by the plan sponsor of a certification from the plan actuary that the plan is in funding restoration status for a plan year4 ,such funding restoration plan shall consist of actions that are calculated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to increase the plan's funded percentage to #ajj percent over a period that is not longer than the greater of #g years or the shortest amount of time practicable4 ,such funding restoration plan shall take into account contributions required under this section 7without regard to this paragraph74 ,if a plan remains in funding restoration status for #b or more years1 such funding restoration plan shall be updated each year after the #ast such year within #ahj days of receipt by the plan sponsor of a certification from the plan actuary that the plan remains in funding restoration status for the plan year4 7#d7 ,annual certification by plan actuary ,not later than the #ijth day of each plan year of a ,,csec plan1 the plan actuary shall certify to the plan sponsor whether or not the plan is in funding restoration status for the plan year1 based on the plan's funded percentage as of the beginning of the plan year4 ,for this purpose1 the actuary may conclusively rely on an estimate of-- 7,a7 the plan's funding liability1 based on the funding liability of the plan for the preceding plan year and on reasonable actuarial estimates1 assumptions1 and methods1 and 7,b7 the amount of any contributions reasonably anticipated to be made for the preceding plan year4 ,contributions described in subparagraph 7,b7 shall be taken into account in determining the plan's funded percentage as of the beginning of the plan year4 7#e7 ,definitions ,for purposes of this subsection-- 7,a7 ,funding restoration status ,a ,,csec plan shall be treated as in funding restoration status for a plan year if the plan's funded percentage as of the beginning of such plan year is less than #hj percent4 7,b7 ,funded percentage ,the term funded percentage means the ratio 7expressed as a percentage7 which-- 7i7 the value of plan assets 7as determined under subsection 7c77#b771 bears to 7ii7 the plan's funding liability4 7,c7 ,funding liability ,the term funding liability for a plan year means the present value of all benefits accrued or earned under the plan as of the beginning of the plan year1 based on the assumptions used by the plan pursuant to this section1 including the interest rate described in subsection 7b77#e77;,a7 7without regard to subsection 7b77#e77;,b774 7,d7 ,spread gain funding method ,the term spread gain funding method has the meaning given such term under rules and forms issued by the ,secretary4 7,e7 ,plan sponsor ,the term plan sponsor means1 with respect to a ,,csec plan1 the association1 committee1 joint board of trustees1 or other similar group of representatives of the parties who establish or maintain the plan4 4 7b7 ,,csec plans ,section #dac of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7d7 ,,csec plans ,notwithstanding any other provision of this section1 in the case of a ,,csec plan-- 7#a7 ,funding ,the requirements of section #dab shall be determined as if all participants in the plan were employed by a single employer4 7#b7 ,application of provisions ,paragraphs 7#a71 7#b71 7#c71 and 7#e7 of subsection 7c7 shall apply4 7#c7 ,deduction limitations ,each applicable limitation provided by section #djd7;a7 shall be determined as if all participants in the plan were employed by a single employer4 ,the amounts contributed to or under the plan by each employer who maintains the plan 7for the portion of the taxable year included within a plan year7 shall be considered not to exceed such applicable limitation if the anticipated employer contributions for such plan year of all employers 7determined in a reasonable manner not inconsistent with regulations prescribed by the ,secretary7 do not exceed such limitation4 ,if such anticipated contributions exceed such limitation1 the portion of each such employer's contributions which is not deductible under section #djd shall be determined in accordance with regulations prescribed by the ,secretary4 7#d7 ,allocations ,allocations of amounts under paragraph 7#c7 and subsection 7c77#e7 among the employers maintaining the plan shall not be inconsistent with the regulations prescribed for this purpose by the ,secretary4 4 7c7 ,separate rules for csec plans 7#a7 ,in general ,paragraph 7#b7 of section #dab7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by inserting at the end thereof the following new subparagraph3 7,d7 in the case of a ,,csec plan1 the employers make contributions to or under the plan for any plan year which1 in the aggregate1 are sufficient to ensure that the plan does not have an accumulated funding deficiency under section #dcc as of the end of the plan year4 4 7#b7 ,conforming amendments ,section #dab of such ,code is amended-- 7,a7 by striking multiemployer plan in paragraph 7,a7 of subsection 7a77#b71 in clause 7i7 of subsection 7c77#a77;,b71 the first place it appears in clause 7i7 of subsection 7c77#a77;,a71 and the last place it appears in paragraph 7#b7 of subsection 7d71 and inserting multiemployer plan or a ,,csec plan1 7,b7 by striking #dcj7;j7 in paragraph 7#a7 of subsection 7b7 and inserting #dcj7;j7 or under section #dcc7;f71 7,c7 7i7 by striking and at the end of clause 7i7 of subsection 7c77#a77;,b71 7ii7 by striking the period at the end of clause 7ii7 of subsection 7c77#a77;,b7 and inserting 1 and1 and 7iii7 by inserting the following new clause after clause 7ii7 of subsection 7c77#a77;,b73 7iii7 in the case of a ,,csec plan1 the funding standard account shall be credited under section #dcc7;b77#c77;,c7 with the amount of the waived funding deficiency and such amount shall be amortized as required under section #dcc7;b77#b77;,c74 1 7,d7 by striking under paragraph 7#a7 in clause 7i7 of subsection 7c77#d77;,a7 and inserting under paragraph 7#a7 or for granting an extension under section #dcc7;d71 7,e7 by striking waiver under this subsection in subparagraph 7,b7 of subsection 7c77#d7 and inserting waiver under this subsection or an extension under #dcc7;d71 7,f7 by striking waiver or modification in subclause 7,i7 of subsection 7c77#d77;,b77i7 and inserting waiver1 modification1 or extension1 7,g7 by striking waivers in the heading of subsection 7c77#d77;,c7 and of clause 7ii7 of subsection 7c77#d77;,c7 and inserting waivers or extensions1 7,h7 by striking section #dca7;d7 in subparagraph 7,a7 of subsection 7c77#g7 and in paragraph 7#b7 of subsection 7d7 and inserting section #dca7;d7 or section #dcc7;d71 7,i7 by striking and at the end of subclause 7,i7 of subsection 7c77#d77;,c77i7 and inserting or the accumulated funding deficiency under section #dcc1 whichever is applicable11 7,j7 by striking #dcj7;e77#b71 in subclause 7,,ii7 of subsection 7c77#d77;,c77i7 and inserting #dcj7;e77#b7 or #dcc7;b77#b77;,c71 whichever is applicable1 and1 7,k7 by adding immediately after subclause 7,,ii7 of subsection 7c77#d77;,c77i7 the following new subclause3 7,,iii7 the total amounts not paid by reason of an extension in effect under section #dcc7;d71 1 and 7,l7 by striking for waivers of in clause 7ii7 of subsection 7c77#d77;,c7 and inserting for waivers or extensions with respect to4 7#c7 ,benefit restrictions 7,a7 ,in general ,paragraph 7#bi7 of section #dja7;a7 of such ,code is amended by striking multiemployer plan and inserting multiemployer plan or a ,,csec plan4 7,b7 ,conforming change ,subsection 7a7 of section #dcf of such ,code is amended by striking single-employer plan and inserting single-employer plan 7other than a ,,csec plan74 7#d7 ,benefit increases ,subparagraph 7,c7 of section #dja7;a77#cc7 of such ,code is amended by striking multiemployer plans and inserting multiemployer plans or ,,csec plans4 7#e7 ,liquidity shortfalls 7,a7 ,in general ,subparagraph 7,a7 of section #dja7;a77#cb7 of such ,code is amended by striking #dcj7;j77#d7 each place it appears and inserting #dcj7;j77#d7 or #dcc7;f77#e74 7,b7 ,period of shortfall ,subparagraph 7,c7 of section #dja7;a77#cb7 of such ,code is amended by striking #dcj7;j77#c7 by reason of section #dcj7;j77#d77;,a7 thereof and inserting #dcj7;j77#c7 or #dcc7;f7 by reason of section #dcj7;j77#d77;,a7 or #dcc7;f77#e71 respectively4 7#f7 ,deduction limits ,subsection 7o7 of section #djd of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,,csec plans ,solely for purposes of this subsection1 a ,,csec plan shall be treated as though section #dcj applied to such plan and the minimum required contribution for any plan year shall be the amount described in section #dab7;a77#b77;,d74 4 7#g7 ,section #dbj ,paragraph 7#e7 of section #dbj7;e7 of such ,code is amended by striking section #dcj each place it appears and inserting sections #dcj and #dcc4 7#h7 ,coordination with section #diga 7,a7 ,subsection 7a7 of section #diga of such ,code is amended by striking and at the end of paragraph 7#a71 by striking the period at the end of paragraph 7#b7 and inserting 1 and1 and by adding at the end thereof the following new paragraph3 7#c7 in the case of a ,,csec plan1 #aj percent of the ,,csec accumulated funding deficiency as of the end of the plan year ending with or within the taxable year4 4 7,b7 ,subsection 7b7 of section #diga of such ,code is amended-- 7i7 by striking or at the end of paragraph 7#a71 by adding or at the end of paragraph 7#b71 and by inserting immediately after paragraph 7#b7 the following new paragraph3 7#c7 a tax is imposed under subsection 7a77#c7 on any ,,csec accumulated funding deficiency and the ,,csec accumulated funding deficiency is not corrected within the taxable period1 1 and 7ii7 by striking minimum required contributions or accumulated funding deficiency and inserting minimum required contribution1 accumulated funding deficiency1 or ,,csec accumulated funding deficiency4 7,c7 ,subsection 7c7 of section #diga of such ,code is amended-- 7i7 by striking accumulated funding deficiency each place it appears in paragraph 7#b7 and inserting accumulated funding deficiency or ,,csec accumulated funding deficiency1 7ii7 by striking accumulated funding deficiency or unpaid minimum required contribution each place it appears in paragraph 7#c7 and inserting accumulated funding deficiency1 ,,csec accumulated funding deficiency1 or unpaid minimum required contribution1 and 7iii7 by adding at the end the following new paragraph3 7#e7 ,,csec accumulated funding deficiency ,the term ,,csec accumulated funding deficiency means the accumulated funding deficiency determined under section #dcc4 4 7,d7 ,paragraph 7#a7 of section #diga7;d7 of such ,code is amended by striking accumulated funding deficiency or unpaid minimum required contribution and inserting accumulated funding deficiency1 ,,csec accumulated funding deficiency1 or unpaid minimum required contribution4 7,e7 ,subsection 7f7 of section #diga of such ,code is amended-- 7i7 by striking #dcj7;j77#d7 in paragraph 7#a7 and inserting #dcj7;j77#d7 or #dcc7;f71 7ii7 by striking #dcj7;j7 in paragraph 7#a77;,b7 and inserting #dcj7;j7 or #dcc7;f71 whichever is applicable1 and 7iii7 by striking #dab7m77#e7 in paragraph 7#c77;,a7 and inserting #dcj7;j7 or #dcc7;f71 whichever is applicable4 7#i7 ,excise tax on failure to adopt funding restoration plan ,section #diga of such ,code is amended by redesignating subsection 7h7 as subsection 7i71 and by inserting after subsection 7g7 the following new subsection3 7h7 ,failure of a ,,csec plan sponsor ,to adopt funding restoration plan 7#a7 ,in general ,in the case of a ,,csec plan that is in funding restoration status 7within the meaning of section #dcc7;j77#e77;,a771 there is hereby imposed a tax on the failure of such plan to adopt a funding restoration plan within the time prescribed under section #dcc7;j77#c74 7#b7 ,amount of tax ,the amount of the tax imposed under paragraph 7#a7 with respect to any plan sponsor for any taxable year shall be the amount equal to #ajj 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 #ahj-;day period described in section #dcc7;j77#c7 and ending on the day on which the funding restoration plan is adopted4 7#c7 ,waiver by ,secretary ,in the case of a failure described in paragraph 7#a7 which the ,secretary determines is due to reasonable cause and not to willful neglect1 the ,secretary may waive a portion or all of the tax imposed by such paragraph4 7#d7 ,liability for tax ,the tax imposed by paragraph 7#a7 shall be paid by the plan sponsor 7within the meaning of section #dcc7;j77#e77;,e774 4 7#aj7 ,reporting 7,a7 ,in general ,paragraph 7#b7 of section #fjei7;b7 of such ,code is amended by striking #dcj1 and inserting #dcj1 the accumulated funding deficiency under section #dcc14 7,b7 ,assumptions ,subparagraph 7,b7 of section #fjei7;b77#c7 of such ,code is amended by striking #dcj7;h77#a7 or #dca7;c77#c7 and inserting #dcj7;h77#a71 #dca7;c77#c71 or #dcc7;c77#c74 #bjc4 ,election not to be treated as a ,,csec plan 7a7 ,in general ,section #dad7y7 of the ,internal ,revenue ,code of #aihf1 as added by section #bja1 is amended by adding at the end the following new paragraph3 7#c7 ,election 7,a7 ,in general ,if a plan falls within the definition of a ,,csec plan under this subsection 7without regard to this paragraph71 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 ,december #ca1 #bjac1 not to be treated as a ,,csec plan4 ,an election under the preceding sentence shall take effect for such plan year and1 once made1 may be revoked only with the consent of the ,secretary4 7,b7 ,special rule ,if a plan described in subparagraph 7,a7 is treated as a ,,csec plan1 section #ajd of the ,pension ,protection ,act of #bjjf1 as amended by the ,preservation of ,access to ,care for ,medicare ,beneficiaries and ,pension ,relief ,act of #bjaj1 shall cease to apply to such plan as of the first date as of which such plan is treated as a ,,csec plan4 4 7b7 ,effective date ,the amendment made by this section shall apply as of the date of enactment of this ,act4 ,passed the ,senate ,january #bh1 #bjad4,secretary