,,ii  #aacth ,,congress  #ast ,session  
,s4 #acjb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #af      
7legislative day1 ,july #ae71 #bjac ,mr4
 ,harkin 7for himself1 ,mr4 ,roberts1   
,mrs4 ,murray1 ,ms4 ,murkowski1 and ,mr4
 ,franken7 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,health1           
,education1 ,labor1 and ,pensions  ,a   
,,bill  ,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 ,definition of cooperative and

 small employer charity pension plans4  
,sec4 #d4 ,funding rules applicable to  
cooperative and small employer charity  
pension plans4 ,sec4 #e4 ,transparency4 
,sec4 #f4 ,elections4 ,sec4 #g4 ,pension
 insurance program modifications4 ,sec4 
#h4 ,sponsor education and assistance4  
,sec4 #i4 ,effective date4  #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 ,definition 
of cooperative and small employer       
charity pension plans  7a7 ,amendment to
 ,,erisa ,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 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 ,january
 #a1 #bjac1 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  7b7 ,amendment to ,code  
,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 ,january
 #a1 #bjac1 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  #d4     
,funding rules applicable to cooperative
 and small employer charity pension     
plans  7a7 ,amendments to ,,erisa  7#a7 
,minimum funding standards under ,,erisa
 ,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 in the 
case of a plan that comes into existence
 on or after the first day of the first 
plan year beginning after ,december #ca1
 #bjac1 the unfunded past liability     
under the plan on the first day of the  
first plan year to which section #cjb   
applies1 over a period of #ae years1    
7iv7 in the case of a plan that is      
subject to section #cjc for the last    
plan year beginning before ,january #a1 

#bjad1 the sum of--  7,i7 the plan's    
funding standard carryover balance and  
prefunding balance 7as such terms are   
defined in section #cjc7;f77 as of the  
end of such plan year1 and  7,,ii7 the  
unfunded past service liability under   
the plan for the first plan year        
beginning after ,december #ca1 #bjac1   
over a period of #ae years1  7v7        
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  7vi7 separately1 with  
respect to each plan year1 the net      
experience loss 7if any7 under the plan1
 over a period of #e plan years1 and    
7vii7 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  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 account1 and  7,e7 for
 the first plan year beginning after    
,december #ca1 #bjac1 in the case of a  
plan that is subject to section #cjc for
 the last plan year beginning before    
,january #a1 #bjad1 the sum of the      
plan's funding standard carryover       
balance and prefunding balance 7as such 
terms are defined in section #cjb7;f77  
as of the end of the last plan year     
beginning before ,january #a1 #bjad4    
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 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 ,in 
the case of a plan that is subject to   
section #cjc for the last plan year     
beginning before ,january #a1 #bjad1 any
 amortization schedules and bases for   
plan years beginning before such date   
shall be reduced to zero4  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 expectations7 or which1 
in the aggregate1 result in a total     
contribution equivalent to that which   
would be determined if each such        
assumption and method were reasonable1  
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 ,not
 affected by cessation of benefit       
accruals ,the availability of any       
funding method1 including all spread    
gain funding methods1 shall not be      
affected by whether benefit accruals    
under a plan have ceased4 ,except as    
otherwise provided in subparagraph 7,c7 
or in regulations prescribed by the     
,secretary of the ,treasury1 if benefit 
accruals have ceased under a plan1 the  
spread gain funding methods may be      
applied by amortizing over the average  
expected future lives of all            

participants4  7,c7 ,minimum amount ,in 
the case of a plan amortizing over the  
average expected future lives of all    
participants pursuant to subparagraph   
7,b71 such amortization amount for any  
plan year shall not be less than the sum
 of--  7i7 the amount determined by     
amortizing1 as of the first year for    
which the plan amortizes over the       
average future lives of all             
participants1 the entire unfunded past  
service liability in equal installments 
over #ae years1 and  7ii7 the amount    
determined by amortizing any increase or
 decrease in such unfunded past service 
liability in any subsequent year1 other 
than an increase or decrease            
attributable to contributions or        
expected experience1 in equal           
installments over #ae years4  7,d7      
,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 ,the
 preceding sentence shall not apply to  
any change made pursuant to1 or         
permitted by1 subparagraph 7,b7 if such 
change is made for the first plan year  
beginning after ,december #ca1 #bjac4   
,any such change may be made without the
 approval of 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#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 7,d71 and 7,e7 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 7other    
than a multiemployer plan7 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    
provide adequate protection for         
participants under the plan and their   
beneficiaries 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      
,special rules ,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               
#cjb7l77#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 
paragraph3  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 the          
contributing sponsor 7or any member of  
the controlled group of the contributing
 sponsor74  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 ,commissioners'  
standard table ,in the case of plan     
years beginning before the first plan   
year to which the first tables          
prescribed under clause 7ii7 apply1 the 
mortality table used in determining     
current liability under this subsection 
shall be the table prescribed by the    
,secretary of the ,treasury which is    
based on the prevailing commissioners'  
standard table 7described in section    
#hjg7;d77#e77;,a7 of the ,internal      
,revenue ,code of #aihf7 used to        
determine reserves for group annuity    
contracts issued on ,january #a1 #aiic4 
7ii7 ,secretarial authority ,the        

,secretary of the ,treasury may by      
regulation prescribe for plan years     
beginning after ,december #ca1 #aiii1   
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   
7iii7 ,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  #abj  #bdj  #cfj  #dhj  
#e 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  
,transition ,the ,secretary of the      
,treasury may prescribe such rules as   
are necessary or appropriate with       
respect to the transition of a ,,csec   
plan from the application of section    
#cjc to the application of this section4
  4  7#b7 ,special rule ,section        
#baj7;a7 of the ,employee ,retirement   

,income ,security ,act of #aigd 7#bi    
,u4,s4,c4 #ajfj7;a77 is amended by      
adding at the end the following new     
paragraph3  7#d7 ,notwithstanding any   
other provision of this section1 in the 
case of a ,,csec plan1 the requirements 
of section #cjb shall be determined as  
if all participants in the plan were    
employed by a single employer4  4  7#c7 
,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  
by--  7i7 striking multiemployer plan in
 the first place it appears in clause   
7i7 of subsection 7c77#a77;,a71 and in  
the last place it appears in paragraph  
7#b7 of subsection 7d71 and inserting   
multiemployer plan or a ,,csec plan1    
7ii7 striking #cjc7;j7 in paragraph 7#a7
 of subsection 7b7 and inserting        
#cjc7;j7 or under #cjf7;f71  7iii7 7,i7 
striking and at the end of clause 7i7 of
 subsection 7c77#a77;,b71  7,,ii7       
striking the period at the end of clause
 7ii7 of subsection 7c77#a77;,b71 and   
inserting 1 and1 and  7,,iii7 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  7iv7 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  7v7  
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  7vi7 striking waiver or      
modification in subclause 7,i7 of       
subsection 7c77#d77;,b77i7 and inserting
 waiver1 modification1 or extension1    
7vii7 striking waivers in the heading of
 subsection 7c77#d77;,c7 and of clause  
7ii7 of subsection 7c77#d77;,c7 and     
inserting waivers or extensions1  7viii7
 striking #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   
7ix7 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 
7x7 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  7xi7 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  7xii7 striking for waivers
 of in clause 7ii7 of subsection        
7c77#d77;,c7 and inserting for waivers  
or extensions with respect to1  7xiii7  
striking #cjd7;d7 in paragraph 7#b7 of  
subsection 7d7 and inserting #cjd7;d7 or
 #cjf7;d71 whichever is applicable1 and 
7xiv7 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#d7 ,benefit            
restrictions  7,a7 ,in general          
,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,b7 ,effective date ,any
 restriction under section #bjf7;g7 of  
the ,employee ,retirement ,income       
,security ,act of #aigd that is in      
effect with respect to a ,,csec plan as 
of the last day of the last plan year   
beginning before ,january #a1 #bjad1    
shall cease to apply as of the first day
 of the following plan year4  7#e7      
,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#f7 ,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#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  7b7 ,amendments to ,code 
7#a7 ,minimum funding standards under   
the internal revenue code ,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 in the 
case of a plan that comes into existence
 on or after the first day of the first 
plan year beginning after ,december #ca1
 #bjac1 the unfunded past liability     
under the plan on the first day of the  
first plan year to which section #dab   
applies1 over a period of #ae years1    
7iv7 in the case of a plan that is      
subject to section #dcj for the last    
plan year beginning before ,january #a1 
#bjad1 the sum of--  7,i7 the plan's    
funding standard carryover balance and  
prefunding balance 7as such terms are   

defined in section #dcj7;f77 as of the  
end of such plan year1 and  7,,ii7 the  
unfunded past service liability under   
the plan for the first plan year        
beginning after ,december #ca1 #bjac1   
over a period of #ae years1  7v7        
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  7vi7 separately1 with  
respect to each plan year1 the net      
experience loss 7if any7 under the plan1
 over a period of #e plan years1 and    
7vii7 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  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 account1 and  7,e7 for
 the first plan year beginning after    
,december #ca1 #bjac1 in the case of a  
plan that is subject to section #dcj for
 the last plan year beginning before    
,january #a1 #bjad1 the sum of the      
plan's funding standard carryover       
balance and prefunding balance 7as such 
terms are defined in section #dcj7;f77  
as of the end of the last plan year     
beginning before ,january #a1 #bjad4    
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 ,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 ,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 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 ,in the case of a plan that is 
subject to section #dcj for the last    
plan year beginning before ,january #a1 
#bjad1 any amortization schedules and   
bases for plan years beginning before   
such date shall be reduced to zero4  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 expectations7 or which1 in   

the aggregate1 result in a total        
contribution equivalent to that which   
would be determined if each such        
assumption and method were reasonable1  
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 ,not affected by         
cessation of benefit accruals ,the      
availability of any funding method1     
including all spread gain funding       
methods1 shall not be affected by       
whether benefit accruals under a plan   
have ceased4 ,except as otherwise       
provided in subparagraph 7,c7 or in     
regulations prescribed by the           
,secretary1 if benefit accruals have    
ceased under a plan1 the spread gain    
funding methods may be applied by       
amortizing over the average expected    
future lives of all participants4  7,c7 
,minimum amount ,in the case of a plan  
amortizing over the average expected    
future lives of all participants        
pursuant to subparagraph 7,b71 such     
amortization amount for any plan year   
shall not be less than the sum of--  7i7
 the amount determined by amortizing1 as

 of the first year for which the plan   
amortizes over the average future lives 
of all participants1 the entire unfunded
 past service liability in equal        
installments over #ae years1 and  7ii7  
the amount determined by amortizing any 
increase or decrease in such unfunded   
past service liability in any subsequent
 year1 other than an increase or        
decrease attributable to contributions  
or expected experience1 in equal        
installments over #ae years4  7,d7      
,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 ,the preceding       
sentence shall not apply to any change  
made pursuant to1 or permitted by1      
subparagraph 7,b7 if such change is made
 for the first plan year beginning after
 ,december #ca1 #bjac4 ,any such change 
may be made without the approval of 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#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 7,d71 and 7,e7 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 7other    
than a multiemployer plan7 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 such ,secretary determines    
that such extension would provide       
adequate protection for participants    
under the plan and their beneficiaries  
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      
,special rules ,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 
paragraph3  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 the          
contributing sponsor 7or any member of  
the controlled group of the contributing
 sponsor74  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 ,commissioners' standard    
table ,in the case of plan years        
beginning before the first plan year to 
which the first tables prescribed under 
clause 7ii7 apply1 the mortality table  
used in determining current liability   
under this subsection shall be the table
 prescribed by the ,secretary which is  
based on the prevailing commissioners'  
standard table 7described in section    
#hjg7;d77#e77;,a77 used to determine    
reserves for group annuity contracts    
issued on ,january #a1 #aiic4  7ii7     
,secretarial authority ,the ,secretary  
may by regulation prescribe for plan    
years beginning after ,december #ca1    
#aiii1 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  7iii7 ,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  #abj  #bdj  #cfj  #dhj  

#e 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          
,transition ,the ,secretary may         
prescribe such rules as are necessary or
 appropriate with respect to the        
transition of a ,,csec plan from the    
application of section #dcj to the      
application of this section4  4  7#b7   
,,csec plans ,section #dac of the       
,internal ,revenue ,code of #aihf is    
amended by adding at the end thereof 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
  4  7#c7 ,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 the ,internal ,revenue 
,code of #aihf is amended by--  7i7     
striking multiemployer plan in paragraph
 7,a7 of subsection 7a77#b71 in clause  
7i7 of subsection 7c77#a77;,b71 in the  
first place it appears in clause 7i7 of 
subsection 7c77#a77;,a71 and in the last
 place it appears in paragraph 7#b7 of  
subsection 7d71 and inserting           
multiemployer plan or a ,,csec plan1    

7ii7 striking #dcj7;j7 in paragraph 7#a7
 of subsection 7b7 and inserting        
#dcj7;j7 or under #dcc7;f71  7iii7 7,i7 
striking and at the end of clause 7i7 of
 subsection 7c77#a77;,b71  7,,ii7       
striking the period at the end of clause
 7ii7 of subsection 7c77#a77;,b71 and   
inserting 1 and1 and  7,,iii7 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  7iv7 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  7v7  
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  7vi7 striking waiver or      
modification in subclause 7,i7 of       
subsection 7c77#d77;,b77i7 and inserting
 waiver1 modification1 or extension1    
7vii7 striking waivers in the heading of
 subsection 7c77#d77;,c7 and of clause  
7ii7 of subsection 7c77#d77;,c7 and     
inserting waivers or extensions1  7viii7
 striking #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   
7ix7 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 
7x7 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  7xi7 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  7xii7 striking for waivers
 of in clause 7ii7 of subsection        
7c77#d77;,c7 and inserting for waivers  
or extensions with respect to1 and      
7xiii7 striking #dca7;d7 in paragraph   
7#b7 of subsection 7d7 and inserting    
#dca7;d7 or #dcc7;d71 whichever is      
applicable4  7#d7 ,benefit restrictions 
7,a7 ,in general ,paragraph 7#bi7 of    
section #dja7;a7 of the ,internal       
,revenue ,code of #aihf is amended by   
striking multiemployer plan and         
inserting multiemployer plan or a ,,csec
 plan4  7,b7 ,conforming change         
,subsection 7a7 of section #dcf of the  
,internal ,revenue ,code of #aihf is    
amended by striking single-employer plan
 and inserting single-employer plan     
7other than a ,,csec plan74  7,c7       
,effective date ,any restriction under  
sections #dja7;a77#bi7 and #dcf of the  
,internal ,revenue ,code of #aihf that  
is in effect with respect to a ,,csec   

plan as of the last day of the last plan
 year beginning before ,january #a1     
#bjad1 shall cease to apply as of the   
first day of the following plan year4   
7#e7 ,benefit increases ,subparagraph   
7,c7 of section #dja7;a77#cc7 of the    
,internal ,revenue ,code of #aihf is    
amended by striking multiemployer plans 
and inserting multiemployer plans or    
,,csec plans4  #e4 ,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  7i7 ,in general 
,in the case of a ,,csec plan1 each     
notice under paragraph 7#a7 shall       
include--  7,i7 a statement that        
different rules apply to ,,csec plans   
than apply to single-employer plans1    
7,,ii7 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  7,,iii7 
for the first #b plan years beginning   
after ,december #ca1 #bjac1 a statement 
that participants and participating     
employers may request a table which     
shows 7determined both with and without 
regard to such different rules7 the     
required minimum contributions to the   
plan for the applicable plan year and   
each of the #b preceding plan years4    
7ii7 ,applicable plan year ,for purposes
 of this subparagraph1 the term         
applicable plan year means any plan year
 beginning after ,december #ca1 #bjac1  
for which--  7,i7 the plan has a funding
 shortfall 7as defined in section       
#cjc7;c77#d77 greater than #a1jjj1jjj1  
and  7,,ii7 the plan had #ej or more    
participants on any day during the      
preceding plan year4  ,for purposes of  
any determination under subclause       

7,,ii71 the aggregation rule under the  
last sentence of section                
#cjc7;g77#b77;,b7 shall apply4  7iii7   
,special rule for plan years beginning  
before #bjad ,in the case of a preceding
 plan year referred to in clause        
7i77,,iii7 which begins before ,january 
#a1 #bjad1 the information described in 
such clause shall be provided only      
without regard to the different rules   
applicable to ,,csec plans4  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 ,,csec plans ,with     
respect to any ,,csec 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  #f4
 ,elections  7a7 ,election not ,to be   
treated as a ,,csec plan  7#a7          
,amendment to ,,erisa ,subsection 7f7 of

 section #baj of the ,employee          
,retirement ,income ,security ,act of   
#aigd1 as added by section #c1 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  7#b7 ,amendment to the ,code ,section
 #dad7y7 of the ,internal ,revenue ,code
 of #aihf1 as added by section #c1 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       
,election ,to cease ,to be treated as an
 eligible charity plan  7#a7 ,in general
 ,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 by--  
7,a7 striking ,for purposes of and      
inserting 7#a7 ,in general4--,for       
purposes of1 and  7,b7 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   
#aigd1 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  4
  7c7 ,deemed election ,for purposes of 
sections #d7;b77#b7 and #djba7;b77#c7 of
 the ,employee ,retirement ,income      
,security ,act of #aigd1 and for 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;,b77i7 of   
the ,employee ,retirement ,income       
,security ,act of #aigd and section     
#dad7y77#c77;,b77i7 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  #g4    
,pension insurance program modifications
  7a7 ,flat-,rate premium ,subparagraph 
7,a7 of section #djjf7;a77#c7 of the    

,employee ,retirement ,income ,security 
,act of #aigd 7#bi ,u4,s4,c4            
#acjf7;a77#c77 is amended--  7#a7 in    
clause 7i7--  7,a7 by striking in the   
case of a single-employer plan and      
inserting except as provided in clause  
7vi71 in the case of a single-employer  
plan2 and  7,b7 in subclause 7,,iii71 by
 striking the period and inserting a    
comma2  7#b7 in clause 7iv71 by striking
 or at the end2  7#c7 in clause 7v71 by 
striking the period at the end and      
inserting 1 or2 and  7#d7 by adding at  
the end thereof the following new       
clause3  7vi7 in the case of a ,,csec   
plan 7as defined in section #baj7;f771  
an amount for each individual who is a  
participant in such plan during the plan
 year equal to the sum of the additional
 premium 7if any7 described under       
subparagraph 7,k7 and #db4  4  7b7      
,variable-,rate premium ,paragraph 7#c7 
of section #djjf7;a7 of such ,act 7#bi  
,u4,s4,c4 #acjf7;a77 is amended by      
adding at the end the following3  7,k7  

7i7 ,the additional premium determined  
under this subparagraph with respect to 
any plan for any plan year--  7,i7 shall
 be an amount equal to the amount       
determined under clause 7ii7 divided by 
the number of participants in such plan 
as of the close of the preceding year2  
and  7,,ii7 in the case of plan years   
beginning in a calendar year after      
#bjac1 shall not exceed the dollar      
amount described in subparagraph        
7,e77i77,,ii7 7without the application  
of subparagraph 7,j774  7ii7 ,the amount
 determined under this clause for any   
plan shall be an amount equal to #i4jj  
for each #a1jjj 7or fraction thereof7 of
 unfunded vested benefits under the plan
 as of the close of the preceding plan  
year4 ,for this purpose1 the term       
unfunded vested benefits shall have the 
meaning given such term under clauses   
7iii7 and 7iv7 of subparagraph 7,e74  4 
7c7 ,study of ,,csec plans  7#a7 ,in    
general ,the ,pension ,benefit ,guaranty
 ,corporation shall conduct a study to  

determine if there is empirical evidence
 to support modifying the premium       
structure under section #djjf7;a77#c7 of
 the ,employee ,retirement ,income      
,security ,act of #aigd 7#bi ,u4,s4,c4  
#acjf7;a77#c77;,a77 for ,,csec plans4   
7#b7 ,data ,the study under paragraph   
7#a7 shall include data with respect    
to--  7,a7 the portion of the ,pension  
,benefit ,guaranty ,corporation's total 
liabilities that are attributable to    
,,csec plans2  7,b7 the ratio of such   
portion to the total of the funding     
targets of ,,csec plans2 and  7,c7 with 
respect to single-employer plans other  
than ,,csec plans1 the ratio of--  7i7  
the portion of the ,pension ,benefit    
,guaranty ,corporation's total          
liabilities that are attributable to    
such plans1 to  7ii7 the total of the   
funding targets of such plans4  7#c7    
,estimates ,in carrying out paragraph   
7#b71 the ,pension ,benefit ,guaranty   
,corporation shall make such reasonable 
estimates as are necessary or           

appropriate in providing the data       
described in such paragraph4  7#d7      
,report ,the ,pension ,benefit ,guaranty
 ,corporation shall report the results  
of the study conducted under paragraph  
7#a71 together with any recommendations 
for legislative changes1 to the         
,committee on ,health1 ,education1      
,labor1 and ,pensions of the ,senate and
 the ,committee on ,education and the   
,workforce of the ,house of             
,representatives4  7#e7 ,participant and
 plan sponsor advocate ,the report      
described in paragraph 7#d7 shall       
include a section prepared by the       
,participant and ,plan ,sponsor         
,advocate of the ,pension ,benefit      
,guaranty ,corporation that includes a  
statement setting forth the position of 
such ,participant and ,plan ,sponsor    
,advocate on the process underlying the 
study and the conclusions set forth in  
the report4  7#f7 ,definitions ,in this 
section--  7,a7 the term ,,csec plan has
 the meaning given such term in section 

#baj of the ,employee ,retirement       
,income ,security ,act of #aigd 7as     
added by section #c72 and  7,b7 the term
 funding target has the meaning given   
that term in section #cjc7;d77#a7 of    
such ,act 7#bi ,u4,s4,c4 #ajhc7;d77#a774
  #h4 ,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 7as added by this ,act74  7b7     
,education ,not later than #f months    
after the date of the enactment of this 
,act1 the ,pension ,benefit ,guaranty   
,corporation shall take reasonable steps
 to make the sponsors of existing ,,csec
 plans aware of--  7#a7 the changes to  
the ,employee ,retirement ,income       
,security ,act of #aigd made by this    
,act2 and  7#b7 the help and assistance 
available through the ,participant and  
,plan ,sponsor ,advocate established    
under section #djjd of such ,act 7#bi   

,u4,s4,c4 #acjd74  #i4 ,effective date  
,unless otherwise specified in this     
,act1 the provisions of this ,act shall 
apply to years beginning after ,december
 #ca1 #bjac4