[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1969 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1969

  To provide for private-sector solutions to certain pension funding 
                  challenges, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2011

 Ms. Jenkins (for herself, Mr. Cleaver, and Mr. Yoder) introduced the 
 following bill; which was referred to the Committee on Education and 
the Workforce, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To provide for private-sector solutions to certain pension funding 
                  challenges, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REDUCTIONS IN CONTRIBUTIONS TO MULTIEMPLOYER PLANS TO 
              IMPLEMENT SELF-HELP MEASURES ADOPTED BY LABOR AND 
              MANAGEMENT.

    (a) Amendments to ERISA.--Section 305 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1085) is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Discretion To Accept Reduced Contributions.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, during the funding plan adoption period, funding 
        improvement period, rehabilitation plan adoption period, and 
        the rehabilitation period, the Pension Benefit Guaranty 
        Corporation may permit a plan sponsor to accept from an 
        employer a ratified collective bargaining agreement with 
        respect to the multiemployer plan that provides for a reduction 
        in the level of contributions made by a contributing employer 
        and appropriate reduction in level of future benefit accruals 
        for any participants for a period of not more than 5 years (or 
        such shorter period as determined by such Corporation) provided 
        that such Corporation determines that--
                    ``(A) the contributing employer will be unable to 
                pay its debts when due and will be unable to continue 
                business without a reduction in its contribution rates;
                    ``(B) the aggregate withdrawal liability of the 
                contributing employer with respect to all multiemployer 
                pension plans exceeds $750,000,000, or such lower 
                amount as determined to be appropriate by such 
                Corporation;
                    ``(C) there is substantial doubt as to the 
                collectability of the withdrawal liability if the 
                contributing employer were to withdraw from the plan;
                    ``(D) the reduced contributions are not reasonably 
                expected to have an adverse effect on the deficit of 
                such Corporation;
                    ``(E) other creditors, stakeholders, and other 
                parties to which the contributing employer is obligated 
                have accepted reductions that are comparable to those 
                of the pension plan; and
                    ``(F) such other conditions are satisfied as may be 
                imposed in accordance with regulations prescribed by 
                such Corporation.
            ``(2) Impact on withdrawal liability determinations.--Any 
        reduction in the level of contributions under this subsection 
        shall be disregarded in determining any limitation on annual 
        payments under subparagraphs (B) and (C) of section 4219(c)(1) 
        and in determining withdrawal liability under section 4201 with 
        respect to the employer subject to the reduced contribution 
        rate.''.
    (b) Amendments to Internal Revenue Code.--Section 432 of the 
Internal Revenue Code of 1986 is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Discretion To Accept Reduced Contributions.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, during the funding plan adoption period, funding 
        improvement period, rehabilitation plan adoption period, and 
        the rehabilitation period, the Pension Benefit Guaranty 
        Corporation may permit a plan sponsor to accept from an 
        employer a ratified collective bargaining agreement with 
        respect to the multiemployer plan that provides for a reduction 
        in the level of contributions made by a contributing employer 
        and appropriate reduction in level of future benefit accruals 
        for any participants for a period of not more than 5 years (or 
        such shorter period as determined by such Corporation) provided 
        that such Corporation determines that--
                    ``(A) the contributing employer will be unable to 
                pay its debts when due and will be unable to continue 
                business without a reduction in its contribution rates;
                    ``(B) the aggregate withdrawal liability of the 
                contributing employer with respect to all multiemployer 
                pension plans exceeds $750,000,000, or such lower 
                amount as determined by such Corporation;
                    ``(C) there is substantial doubt as to the 
                collectability of the withdrawal liability if the 
                contributing employer were to withdraw from the plan;
                    ``(D) the reduced contributions are not reasonably 
                expected to have an adverse effect on the deficit of 
                such Corporation;
                    ``(E) other creditors, stakeholders, and other 
                parties to which the contributing employer is obligated 
                have accepted reductions that are comparable to those 
                of the pension plan; and
                    ``(F) such other conditions are satisfied as may be 
                imposed in accordance with regulations prescribed by 
                such Corporation.
            ``(2) Impact on withdrawal liability determinations.--Any 
        reduction in the level of contributions under this subsection 
        shall be disregarded in determining any limitation on annual 
        payments under subparagraphs (B) and (C) of section 4219(c)(1) 
        of the Employee Retirement Income Security Act of 1974 and in 
        determining withdrawal liability under section 4201 of such Act 
        with respect to the employer subject to the reduced 
        contribution rate.''.
    (c) Technical and Conforming Amendments.--
            (1) Section 4971(g)(4)(C)(ii) of the Internal Revenue Code 
        of 1986 is amended by striking ``432(i)(9)'' and inserting 
        ``432(j)(9)''.
            (2) Sections 101(f)(2)(B) and 103(f)(1)(B) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B) 
        and 1023(f)(1)(B)) are each amended by striking ``305(i)'' each 
        place such term appears and inserting ``305(j)''.
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