PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 885
in that section a funding improvement plan or rehabilitation plan with respect to a multiemployer which is in endangered or critical status, or ‘‘(B) in the case of a plan in endangered status which is not in seriously endangered status, for failure by the plan to meet the applicable benchmarks under section 305 by the end of the funding improvement period with respect to the plan.’’. (c) CAUSE OF ACTION TO COMPEL ADOPTION OR IMPLEMENTATION OF FUNDING IMPROVEMENT OR REHABILITATION PLAN.—Section 502(a) of the Employee Retirement Income Security Act of 1974 is amended by striking ‘‘or’’ at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting ‘‘; or’’ and by adding at the end the following: ‘‘(10) in the case of a multiemployer plan that has been certified by the actuary to be in endangered or critical status under section 305, if the plan sponsor— ‘‘(A) has not adopted a funding improvement or rehabilitation plan under that section by the deadline established in such section, or ‘‘(B) fails to update or comply with the terms of the funding improvement or rehabilitation plan in accordance with the requirements of such section, by an employer that has an obligation to contribute with respect to the multiemployer plan or an employee organization that represents active participants in the multiemployer plan, for an order compelling the plan sponsor to adopt a funding improvement or rehabilitation plan or to update or comply with the terms of the funding improvement or rehabilitation plan in accordance with the requirements of such section and the funding improvement or rehabilitation plan.’’. (d) NO ADDITIONAL CONTRIBUTIONS REQUIRED.—Section 302(b) of the Employee Retirement Income Security Act of 1974, as amended by this Act, is amended by adding at the end the following new paragraph: ‘‘(3) MULTIEMPLOYER PLANS IN CRITICAL STATUS.—Paragraph (1) shall not apply in the case of a multiemployer plan for any plan year in which the plan is in critical status pursuant to section 305. This paragraph shall only apply if the plan adopts a rehabilitation plan in accordance with section 305(e) and complies with the terms of such rehabilitation plan (and any updates or modifications of the plan).’’. (e) CONFORMING AMENDMENT.—The table of contents in section 1 of such Act (as amended by the preceding provisions of this Act) is amended by inserting after the item relating to section 304 the following new item:
29 USC 1132.
29 USC 1082.
‘‘Sec. 305. Additional funding rules for multiemployer plans in endangered status or critical status.’’.
(f) EFFECTIVE DATES.— (1) IN GENERAL.—The amendments made by this section shall apply with respect to plan years beginning after 2007. (2) SPECIAL RULE FOR CERTAIN NOTICES.—In any case in which a plan’s actuary certifies that it is reasonably expected that a multiemployer plan will be in critical status under section 305(b)(3) of the Employee Retirement Income Security Act of 1974, as added by this section, with respect to the first plan year beginning after 2007, the notice required under
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29 USC 1082 note.
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