[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2384 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2384

 To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to modify certain provisions relating to 
            multiemployer pensions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2017

  Mr. Nolan introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
  Committees on Ways and Means, and the Judiciary, 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 amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to modify certain provisions relating to 
            multiemployer pensions, 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. SHORT TITLE.

    This Act may be cited as the ``Keeping America's Pension Promises 
Act''.

SEC. 2. RESTORING ANTI-CUTBACK PROVISIONS.

    Section 201 of the Multiemployer Pension Reform Act of 2014 
(division O of Public Law 113-235) and the amendments made by such 
section are repealed, and the Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 shall be applied as if 
such section and amendments had never been enacted.

SEC. 3. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS.

    (a) In General.--Section 4233 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1413), as amended by section 122 of the 
Multiemployer Pension Reform Act of 2014 (division O of Public Law 113-
235), is amended to read as follows:

``SEC. 4233. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS.

    ``(a)(1) Upon the application by the plan sponsor of an eligible 
multiemployer plan for a partition of the plan, the corporation may 
order a partition of the plan in accordance with this section. The 
corporation shall make a determination regarding the application, in 
accordance with regulations promulgated by the corporation, not later 
than 270 days after--
            ``(A) the date such application was filed; or
            ``(B) if later, the date such application was completed.
    ``(2) At least 14 days before submitting an application for 
partition of a plan under paragraph (1), the plan sponsor of the plan 
shall notify all participants and beneficiaries of such application, in 
the form and manner prescribed by regulations issued by the 
corporation.
    ``(b) For purposes of this section, a multiemployer plan is an 
eligible multiemployer plan if--
            ``(1) the plan is in critical status and is projected to 
        become insolvent within the meaning of section 4245--
                    ``(A) during the current plan year or any of the 14 
                succeeding plan years; or
                    ``(B) during the current plan year or any of the 19 
                succeeding plan years, if the plan has a ratio of 
                inactive participants to active participants that 
                exceeds 2 to 1 and the funded percentage of the plan is 
                less than 80 percent;
            ``(2) the corporation determines, after consultation with 
        the Participant and Plan Sponsor Advocate selected under 
        section 4004, that the plan sponsor has taken (or is taking 
        concurrently with an application for partition) all reasonable 
        measures described in section 432(e)(3)(A) of the Internal 
        Revenue Code of 1986, and has made (or is making) benefit 
        adjustments under section 432(e)(8) of such Code to reduce the 
        risk of insolvency;
            ``(3) 20 percent or more of the amount by which the 
        liabilities of the plan exceed the value of plan assets is 
        attributable to the service of participants whose employers--
                    ``(A) withdrew from the plan prior to the date of 
                enactment of the Keeping America's Pension Promises 
                Act; and
                    ``(B) failed to pay (or are delinquent with respect 
                to paying) the full amount of the employer's withdrawal 
                liability under section 4201(b)(1) or as otherwise 
                determined under an agreement with the plan;
            ``(4) the corporation reasonably expects that--
                    ``(A) a partition of the plan will reduce the 
                corporation's expected long-term loss with respect to 
                the plan; and
                    ``(B) a partition of the plan is necessary for the 
                plan to remain or become solvent; and
            ``(5) the corporation certifies to Congress that after 
        partition the corporation will continue to have the ability to 
        meet existing financial assistance obligations to other plans 
        (including any liabilities associated with multiemployer plans 
        that are insolvent or that are projected to become insolvent 
        within 10 years).
    ``(c)(1) A partition under this section shall consist of a transfer 
to the plan created by the partition order of benefits to which 
eligible participants and beneficiaries were entitled under the plan 
that was partitioned, in an amount not to exceed the amount that would 
be guaranteed under section 4022A if the plan were insolvent as of the 
date of the partition order.
    ``(2) The corporation's partition order shall provide for an annual 
transfer by the corporation to the plan created by the partition order 
of an amount equal to the yearly benefits that would be guaranteed 
under section 4022A to the eligible participants and beneficiaries if 
the plan were insolvent as of the date of the partition order.
    ``(3)(A) Where practicable, the initial transfer in accordance with 
paragraph (2) shall be completed at least 60 days prior to the plan 
year that immediately follows the partition start date. The partition 
order shall require that the initial transfer be sufficient to satisfy 
the guaranteed benefits in the first plan year of the partitioned plan.
    ``(B) Subsequent transfers in accordance with paragraph (2) shall 
be completed at least 60 days prior to the first day of each succeeding 
plan year.
    ``(d)(1)(A) The plan created by the partition order is a successor 
plan to which section 4022A applies.
    ``(B) At the discretion of the plan sponsor, the plan created by 
the partition order may remain a part of the plan that was partitioned 
or be maintained as a separate plan.
    ``(2)(A) The plan sponsor and the administrator of an eligible 
multiemployer plan prior to the partition shall be the plan sponsor and 
the administrator, respectively, of the plan created by the partition 
order, and shall adopt reasonable procedures to reduce administrative 
expenses and to coordinate benefit payments and communications with the 
participants and beneficiaries in the plan created by the partition 
order.
    ``(B) Benefit payments equal to the amount of an eligible 
participant or beneficiary's guaranteed benefits shall be paid to such 
participant or beneficiary and may be--
            ``(i) paid separately by the plan created by the partition 
        order; or
            ``(ii) paid in a single, monthly payment by the plan that 
        was partitioned.
    ``(3) In the event an employer withdraws from the plan that was 
partitioned, withdrawal liability shall be computed under section 4201 
with respect to both the plan that was partitioned and the plan created 
by the partition order.
    ``(e) In addition to the payment of guaranteed benefits under 
subsection (d)(2)(B), each eligible participant or beneficiary of the 
plan created by the partition order shall receive a monthly benefit for 
each month the benefit is in pay status in an amount that--
            ``(1) the corporation, in consultation with the Participant 
        and Plan Sponsor Advocate, determines to be fair to the plan, 
        the participant or beneficiary, the employers, and the 
        corporation; and
            ``(2) is at least equal to the lesser of--
                    ``(A) the monthly nonforfeitable benefit for such 
                participant or beneficiary payable under the plan that 
                was partitioned; or
                    ``(B) 80 percent of the maximum benefit commencing 
                at age 65 guaranteed under section 4022(a) for 
                participants and beneficiaries in terminated single 
                employer plans, unreduced for early retirement.
Such monthly benefit may be combined with the monthly payment under 
subsection (d)(2)(B)(ii).
    ``(f)(1) The corporation shall establish a legacy fund for the 
purposes of funding the administrative and benefit costs to the 
corporation arising from partitions under this section, as described in 
paragraph (2).
    ``(2) Any administrative and benefit costs to the corporation 
arising from a partition ordered under this section in excess of 
amounts available in such legacy fund shall be paid from the fund for 
basic benefits guaranteed for multiemployer plans.
    ``(g) Only one partition order shall be issued with respect to each 
eligible multiemployer plan.
    ``(h) For purposes of this subsection, the term `eligible 
participant or beneficiary' means a participant or beneficiary of an 
eligible multiemployer plan that is partitioned in accordance with a 
petition order under this section, and who is an employee or 
beneficiary of an employee of an employer that is described in 
subsection (b)(3).
    ``(i) Not later than 14 days after the issuance of a partition 
order under this section, the corporation shall provide notice of such 
order to the Committee on Finance of the Senate, the Committee on 
Health, Education, Labor, and Pensions of the Senate, the Committee on 
Education and the Workforce of the House of Representatives, the 
Committee on Ways and Means of the House of Representatives, and to all 
eligible participants or beneficiaries whose guaranteed benefits will 
be paid directly or indirectly by the plan created by the partition 
order.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to plan years beginning after the date of enactment 
of this Act.
    (c) Transfers to Legacy Fund.--The Secretary of the Treasury shall 
from time to time transfer from the general fund of the Treasury to the 
legacy fund established under section 4233(f)(1) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1413(f)(1)) (as 
amended by subsection (a)) amounts equal to the increase in revenues to 
the Treasury by reason of the amendments made by sections 6 and 7 of 
this Act.
    (d) Transfers Between Funds of the PBGC.--Section 4005 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1305) is 
amended by adding at the end the following:
    ``(i)(1) An eighth fund is established under section 4233(f) and 
credited with the amounts described in section 3(c) of the Keeping 
America's Pension Promises Act.
    ``(2) Notwithstanding subsection (g), the corporation may transfer 
amounts into the legacy fund established under section 4233(f)(1) from 
other funds established under this section, as the corporation 
determines appropriate.''.

SEC. 4. EMPLOYER WITHDRAWALS RELATING TO MULTIEMPLOYER PLANS.

    The matter preceding paragraph (1) of section 4225(b) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1405(b)) is 
amended by inserting ``, including an employer undergoing liquidation 
under chapter 7 of title 11, United States Code, or similar provisions 
of State law,'' after ``dissolution,''.

SEC. 5. PRIORITIES OF CLAIMS IN BANKRUPTCY.

    (a) In General.--Section 507(a) of title 11, United States Code, is 
amended--
            (1) by redesignating paragraphs (1) through 10 as 
        paragraphs (2) through (11), respectively;
            (2) by inserting before paragraph (2) (as redesignated) the 
        following:
            ``(1) First, withdrawal liability determined under part 1 
        of subtitle E of title IV of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1381 et seq.).'';
            (3) in the matter preceding subparagraph (A) of paragraph 
        (2) (as redesignated), by striking ``First:'' and inserting 
        ``Second:'';
            (4) in paragraph (3) (as redesignated), by striking 
        ``Second,'' and inserting ``Third,'';
            (5) in paragraph (4) (as redesignated), by striking 
        ``Third,'' and inserting ``Fourth,'';
            (6) in the matter preceding subparagraph (A) of paragraph 
        (5) (as redesignated), by striking ``Fourth,'' and inserting 
        ``Fifth,'';
            (7) in the matter preceding subparagraph (A) of paragraph 
        (6) (as redesignated), by striking ``Fifth,'' and inserting 
        ``Sixth,'';
            (8) in the matter preceding subparagraph (A) of paragraph 
        (7) (as redesignated), by striking ``Sixth,'' and inserting 
        ``Seventh,'';
            (9) in paragraph (8) (as redesignated), by striking 
        ``Seventh,'' and inserting ``Eighth,'';
            (10) in the matter preceding subparagraph (A) of paragraph 
        (9) (as redesignated), by striking ``Eighth,'' and inserting 
        ``Ninth,'';
            (11) in paragraph (10) (as redesignated), by striking 
        ``Ninth,'' and inserting ``Tenth,''; and
            (12) in paragraph (11) (as redesignated), by striking 
        ``Tenth,'' and inserting ``Eleventh,''.
    (b) Technical and Conforming Amendments.--
            (1) Section 502(i) of title 11, United States Code, is 
        amended by striking ``section 507(a)(8)'' and inserting 
        ``section 507(a)(9)''.
            (2) Section 503(b)(1)(B)(i) of title 11, United States 
        Code, is amended by striking ``section 507(a)(8)'' and 
        inserting ``section 507(a)(9)''.
            (3) Section 507(d) of title 11, United States Code, is 
        amended by striking ``(a)(1), (a)(4), (a)(5), (a)(6), (a)(7), 
        (a)(8), or (a)(9)'' and inserting ``(a)(2), (a)(5), (a)(6), 
        (a)(7), (a)(8), (a)(9), or (a)(10)''.
            (4) Section 523(A) of title 11, United States Code, is 
        amended by striking ``section 507(a)(3) or 507(a)(8)'' and 
        inserting ``section 507(a)(4) or 507(a)(9)''.
            (5) Section 724 of title 11, United States Code, is 
        amended--
                    (A) in subsection (b)(2), by striking ``section 
                507(a)(1)(C) or 507(a)(2)'' and inserting ``section 
                507(a)(2)(C) or 507(a)(3)''; and
                    (B) in subsection (f)--
                            (i) in paragraph (1), by striking ``section 
                        507(a)(4)'' and inserting ``section 
                        507(a)(5)''; and
                            (ii) in paragraph (2), by striking 
                        ``section 507(a)(5)'' and inserting ``section 
                        507(a)(6)''.
            (6) Section 726(b) of title 11, United States Code, is 
        amended by striking ``paragraph (1), (2), (3), (4), (5), (6), 
        (7), (8), (9), or (10) of section 507(a)'' and inserting 
        ``paragraph (2), (3), (4), (5), (6), (7), (8), (9), (10), or 
        (11) of section 507(a)''.
            (7) Section 752(a) of title 11, United States Code, is 
        amended by striking ``section 507(a)(2)'' and inserting 
        ``section 507(a)(3)''.
            (8) Section 766 of title 11, United States Code, is 
        amended--
                    (A) in subsection (h), by striking ``section 
                507(a)(2)'' and inserting ``section 507(a)(3)''; and
                    (B) in subsection (i)--
                            (i) in paragraph (1), by striking ``section 
                        507(a)(2)'' and inserting ``section 
                        507(a)(3)''; and
                            (ii) in paragraph (2), by striking 
                        ``section 507(a)(2)'' and inserting ``section 
                        507(a)(3)''.
            (9) Section 901 of title 11, United States Code, is amended 
        by striking ``507(a)(2)'' and inserting ``507(a)(3)''.
            (10) Section 943(b)(5) of title 11, United States Code, is 
        amended by striking ``section 507(a)(2)'' and inserting 
        ``section 507(a)(3)''.
            (11) Section 1123(a)(1) of title 11, United States Code, is 
        amended by striking ``section 507(a)(2), 507(a)(3), or 
        507(a)(8)'' and inserting ``section 507(a)(3), 507(a)(4), or 
        507(a)(9)''.
            (12) Section 1129(a)(9) of title 11, United States Code, is 
        amended--
                    (A) in subparagraph (A), by striking ``section 
                507(a)(3) or 507(a)(4)'' and inserting ``section 
                507(a)(4) or 507(a)(5)'';
                    (B) in the matter preceding clause (i) of 
                subparagraph (B), by striking ``section 507(a)(1), 
                507(a)(4), 507(a)(5), 507(a)(6), or 507(a)(7)'' and 
                inserting ``section 507(a)(2), 507(a)(5), 507(a)(6), 
                507(a)(7), or 507(a)(8)'';
                    (C) in the matter preceding clause (i) of 
                subparagraph (C), by striking ``section 507(a)(8)'' and 
                inserting ``section 507(a)(9)''; and
                    (D) in subparagraph (D), by striking ``section 
                507(a)(8)'' and inserting ``section 507(a)(9)''.
            (13) Section 1222(a)(4) of title 11, United States Code, is 
        amended by striking ``section 507(a)(1)(B)'' and inserting 
        ``507(a)(2)(B)''.
            (14) Section 1226(b)(1) of title 11, United States Code, is 
        amended by striking ``section 507(a)(2)'' and inserting 
        ``section 507(a)(3)''.
            (15) Section 1322(a)(4) of title 11, United States Code, is 
        amended by striking ``section 507(a)(1)(B)'' and inserting 
        ``section 507(a)(2)(B)''.
            (16) Section 1326(b)(1) of title 11, United States Code, is 
        amended by striking ``section 507(a)(2)'' and inserting 
        ``section 507(a)(3)''.
            (17) Section 1328(a)(2) of title 11, United States Code, is 
        amended by striking ``section 507(a)(8)(C)'' and inserting 
        ``section 507(a)(9)(C)''.

SEC. 6. TRANSACTION TAX.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter B the following new subchapter:

              ``Subchapter C--Tax on Trading Transactions

``Sec. 4475. Tax on trading transactions.

``SEC. 4475. TAX ON TRADING TRANSACTIONS.

    ``(a) Imposition of Tax.--There is hereby imposed a tax on each 
covered transaction with respect to any security.
    ``(b) Rate of Tax.--The tax imposed under subsection (a) with 
respect to any covered transaction shall be 0.03 percent of the 
specified base amount with respect to such covered transaction.
    ``(c) Specified Base Amount.--For purposes of this section, the 
term `specified base amount' means--
            ``(1) except as provided in paragraph (2), the fair market 
        value of the security (determined as of the time of the covered 
        transaction), and
            ``(2) in the case of any payment described in subsection 
        (h), the amount of such payment.
    ``(d) Covered Transaction.--For purposes of this section, the term 
`covered transaction' means--
            ``(1) except as provided in paragraph (2), any purchase 
        if--
                    ``(A) such purchase occurs or is cleared on a 
                facility located in the United States, or
                    ``(B) the purchaser or seller is a United States 
                person, and
            ``(2) any transaction with respect to a security described 
        in subparagraph (D), (E), or (F) of subsection (e)(1), if--
                    ``(A) such security is traded or cleared on a 
                facility located in the United States, or
                    ``(B) any party with rights under such security is 
                a United States person.
    ``(e) Security and Other Definitions.--For purposes of this 
section--
            ``(1) In general.--The term `security' means--
                    ``(A) any share of stock in a corporation,
                    ``(B) any partnership or beneficial ownership 
                interest in a partnership or trust,
                    ``(C) any note, bond, debenture, or other evidence 
                of indebtedness,
                    ``(D) any evidence of an interest in, or a 
                derivative financial instrument with respect to, any 
                security or securities described in subparagraph (A), 
                (B), or (C),
                    ``(E) any derivative financial instrument with 
                respect to any currency or commodity, and
                    ``(F) any other derivative financial instrument any 
                payment with respect to which is calculated by 
                reference to any specified index.
            ``(2) Derivative financial instrument.--The term 
        `derivative financial instrument' includes any option, forward 
        contract, futures contract, notional principal contract, or any 
        similar financial instrument.
            ``(3) Specified index.--The term `specified index' means 
        any one or more of any combination of--
                    ``(A) a fixed rate, price, or amount, or
                    ``(B) a variable rate, price, or amount,   
        which is based on any current objectively determinable 
        information which is not within the control of any of the 
        parties to the contract or instrument and is not unique to any 
        of the parties' circumstances.
            ``(4) Treatment of exchanges.--
                    ``(A) In general.--An exchange shall be treated as 
                the sale of the property transferred and a purchase of 
                the property received by each party to the exchange.
                    ``(B) Certain deemed exchanges.--In the case of a 
                distribution treated as an exchange for stock under 
                section 302 or 331, the corporation making such 
                distribution shall be treated as having purchased such 
                stock for purposes of this section.
    ``(f) Exceptions.--
            ``(1) Exception for initial issues.--No tax shall be 
        imposed under subsection (a) on any covered transaction with 
        respect to the initial issuance of any security described in 
        subparagraph (A), (B), or (C) of subsection (e)(1).
            ``(2) Exception for certain traded short-term 
        indebtedness.--A note, bond, debenture, or other evidence of 
        indebtedness which--
                    ``(A) is traded on a trading facility located in 
                the United States, and
                    ``(B) has a fixed maturity of not more than 100 
                days,
        shall not be treated as described in subsection (e)(1)(C).
            ``(3) Exception for securities lending arrangements.--No 
        tax shall be imposed under subsection (a) on any covered 
        transaction with respect to which gain or loss is not 
        recognized by reason of section 1058.
    ``(g) By Whom Paid.--
            ``(1) In general.--The tax imposed by this section shall be 
        paid by--
                    ``(A) in the case of a transaction which occurs or 
                is cleared on a facility located in the United States, 
                such facility, and
                    ``(B) in the case of a purchase not described in 
                subparagraph (A) which is executed by a broker (as 
                defined in section 6045(c)(1)) which is a United States 
                person, such broker.
            ``(2) Special rules for direct, etc., transactions.--In the 
        case of any transaction to which paragraph (1) does not apply, 
        the tax imposed by this section shall be paid by--
                    ``(A) in the case of a transaction described in 
                subsection (d)(1)--
                            ``(i) the purchaser if the purchaser is a 
                        United States person, and
                            ``(ii) the seller if the purchaser is not a 
                        United States person, and
                    ``(B) in the case of a transaction described in 
                subsection (d)(2)--
                            ``(i) the payor if the payor is a United 
                        States person, and
                            ``(ii) the payee if the payor is not a 
                        United States person.
    ``(h) Certain Payments Treated as Separate Transactions.--Except as 
otherwise provided by the Secretary, any payment with respect to a 
security described in subparagraph (D), (E), or (F) of subsection 
(e)(1) shall be treated as a separate transaction for purposes of this 
section, including--
            ``(1) any net initial payment, net final or terminating 
        payment, or net periodical payment with respect to a notional 
        principal contract (or similar financial instrument),
            ``(2) any payment with respect to any forward contract (or 
        similar financial instrument), and
            ``(3) any premium paid with respect to any option (or 
        similar financial instrument).
    ``(i) Administration.--The Secretary shall carry out this section 
in consultation with the Securities and Exchange Commission and the 
Commodity Futures Trading Commission.
    ``(j) Guidance; Regulations.--The Secretary shall--
            ``(1) provide guidance regarding such information reporting 
        concerning covered transactions as the Secretary deems 
        appropriate, and
            ``(2) prescribe such regulations as are necessary or 
        appropriate to prevent avoidance of the purposes of this 
        section, including the use of non-United States persons in such 
        transactions.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to subchapter B the following new item:

             ``subchapter c. tax on trading transactions''.

    (c) Effective Date.--The amendments made by this section shall 
apply to transactions made after December 31, 2017.
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