PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 917
(2) CONTROLLED GROUPS.—Section 4971(c)(2) of such Code is amended— (A) by striking ‘‘In the case of a plan other than a multiemployer plan, if the’’ and inserting ‘‘If an’’, and (B) by striking ‘‘or (f)’’ and inserting ‘‘(f), or (g)’’. (c) NO ADDITIONAL CONTRIBUTION REQUIRED.—Section 412(b) of the Internal Revenue Code of 1986, 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 432. This paragraph shall only apply if the plan adopts a rehabilitation plan in accordance with section 432(e) and complies with such rehabilitation plan (and any modifications of the plan).’’. (d) CLERICAL AMENDMENT.—The table of sections for subpart A of part III of subchapter D of chapter 1 of such Code is amended by adding at the end the following new item:
26 USC 4971.
26 USC 412.
‘‘Sec. 432. Additional funding rules for multiemployer plans in endangered status or critical status.’’.
(e) 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 subparagraph (D) of such section may be provided at any time after the date of enactment, so long as it is provided on or before the last date for providing the notice under such subparagraph. (3) SPECIAL RULE FOR CERTAIN RESTORED BENEFITS.—In the case of a multiemployer plan— (A) with respect to which benefits were reduced pursuant to a plan amendment adopted on or after January 1, 2002, and before June 30, 2005, and (B) which, pursuant to the plan document, the trust agreement, or a formal written communication from the plan sponsor to participants provided before June 30, 2005, provided for the restoration of such benefits, the amendments made by this section shall not apply to such benefit restorations to the extent that any restriction on the providing or accrual of such benefits would otherwise apply by reason of such amendments.
26 USC 412 note.
SEC. 213. MEASURES TO FORESTALL INSOLVENCY OF MULTIEMPLOYER PLANS.
(a) ADVANCE DETERMINATION OF IMPENDING INSOLVENCY OVER 5 YEARS.—Section 418E(d)(1) of the Internal Revenue Code of 1986 is amended— (1) by striking ‘‘3 plan years’’ the second place it appears and inserting ‘‘5 plan years’’; and (2) by adding at the end the following new sentence: ‘‘If the plan sponsor makes such a determination that the plan will be insolvent in any of the next 5 plan years, the plan
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