120 STAT. 916
PUBLIC LAW 109–280—AUG. 17, 2006 ‘‘(A) a plan which is in seriously endangered status fails to meet the applicable benchmarks by the end of the funding improvement period, or ‘‘(B) a plan which is in critical status either— ‘‘(i) fails to meet the requirements of section 432(e) by the end of the rehabilitation period, or ‘‘(ii) has received a certification under section 432(b)(3)(A)(ii) for 3 consecutive plan years that the plan is not making the scheduled progress in meeting its requirements under the rehabilitation plan, the plan shall be treated as having an accumulated funding deficiency for purposes of this section for the last plan year in such funding improvement, rehabilitation, or 3consecutive year period (and each succeeding plan year until such benchmarks or requirements are met) in an amount equal to the greater of the amount of the contributions necessary to meet such benchmarks or requirements or the amount of such accumulated funding deficiency without regard to this paragraph. ‘‘(4) FAILURE TO ADOPT REHABILITATION PLAN.— ‘‘(A) IN GENERAL.—In the case of a multiemployer plan which is in critical status, there is hereby imposed a tax on the failure of such plan to adopt a rehabilitation plan within the time prescribed under section 432. ‘‘(B) AMOUNT OF TAX.—The amount of the tax imposed under subparagraph (A) with respect to any plan sponsor for any taxable year shall be the greater of— ‘‘(i) the amount of tax imposed under subsection (a) for the taxable year (determined without regard to this subsection), or ‘‘(ii) the amount equal to $1,100 multiplied by the number of days during the taxable year which are included in the period beginning on the first day of the 240-day period described in section 432(e)(1)(A) and ending on the day on which the rehabilitation plan is adopted. ‘‘(C) LIABILITY FOR TAX.— ‘‘(i) IN GENERAL.—The tax imposed by subparagraph (A) shall be paid by each plan sponsor. ‘‘(ii) PLAN SPONSOR.—For purposes of clause (i), the term ‘plan sponsor’ in the case of a multiemployer plan means the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan. ‘‘(5) WAIVER.—In the case of a failure described in paragraph (2) or (3) which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by this subsection. For purposes of this paragraph, reasonable cause includes unanticipated and material market fluctuations, the loss of a significant contributing employer, or other factors to the extent that the payment of tax under this subsection with respect to the failure would be excessive or otherwise inequitable relative to the failure involved. ‘‘(6) TERMS USED IN SECTION 432.—For purposes of this subsection, any term used in this subsection which is also used in section 432 shall have the meaning given such term by section 432.’’.
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