[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4444 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4444

    To amend the Internal Revenue Code of 1986 to create a Pension 
   Rehabilitation Trust Fund, to establish a Pension Rehabilitation 
 Administration within the Department of the Treasury to make loans to 
      multiemployer defined benefit plans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 16, 2017

   Mr. Neal (for himself, Mr. Levin, Mr. Thompson of California, Mr. 
Crowley, Mr. Danny K. Davis of Illinois, Mr. Higgins of New York, Mrs. 
 Bustos, Mr. Carson of Indiana, Ms. Castor of Florida, Mr. Cicilline, 
 Mr. Cleaver, Mr. Clyburn, Mrs. Dingell, Mr. Espaillat, Mr. Evans, Ms. 
 Fudge, Ms. Bonamici, Mr. Hastings, Ms. Kaptur, Mr. Kildee, Ms. Wilson 
 of Florida, Ms. Maxine Waters of California, Ms. Velazquez, Mr. Vela, 
 Mr. Scott of Virginia, Ms. Schakowsky, Mr. Sablan, Mr. Ryan of Ohio, 
 Ms. Blunt Rochester, Miss Rice of New York, Mr. Pallone, Ms. Norton, 
 Mr. Norcross, Mr. Nolan, Mrs. Napolitano, Ms. Moore, Mrs. Carolyn B. 
  Maloney of New York, Mr. Lynch, Mrs. Beatty, and Mr. Gene Green of 
    Texas) 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 Appropriations, 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 Internal Revenue Code of 1986 to create a Pension 
   Rehabilitation Trust Fund, to establish a Pension Rehabilitation 
 Administration within the Department of the Treasury to make loans to 
      multiemployer defined benefit plans, 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 ``Rehabilitation for Multiemployer 
Pensions Act''.

SEC. 2. PENSION REHABILITATION ADMINISTRATION; ESTABLISHMENT; POWERS.

    (a) Establishment.--There is established in the Department of the 
Treasury an agency to be known as the ``Pension Rehabilitation 
Administration''.
    (b) Director.--
            (1) Establishment of position.--There shall be at the head 
        of the Pension Rehabilitation Administration a Director, who 
        shall be appointed by the President.
            (2) Term.--
                    (A) In general.--The term of office of the Director 
                shall be 5 years.
                    (B) Service until appointment of successor.--An 
                individual serving as Director at the expiration of a 
                term may continue to serve until a successor is 
                appointed.
            (3) Powers.--
                    (A) Appointment of deputy directors, officers, and 
                employees.--The Director may appoint Deputy Directors, 
                officers, and employees, including attorneys, in 
                accordance with chapter 51 and subchapter III of 
                chapter 53 of title 5, United States Code.
                    (B) Contracting.--
                            (i) In general.--The Director may contract 
                        for financial and administrative services 
                        (including those related to budget and 
                        accounting, financial reporting, personnel, and 
                        procurement) with the General Services 
                        Administration, or such other Federal agency as 
                        the Director determines appropriate, for which 
                        payment shall be made in advance, or by 
                        reimbursement, from funds of the Pension 
                        Rehabilitation Administration in such amounts 
                        as may be agreed upon by the Director and the 
                        head of the Federal agency providing the 
                        services.
                            (ii) Subject to appropriations.--Contract 
                        authority under clause (i) shall be effective 
                        for any fiscal year only to the extent that 
                        appropriations are available for that purpose.
    (c) Transfer of Funds.--The Secretary of the Treasury may transfer 
for any fiscal year, from unobligated amounts appropriated to the 
Department of the Treasury, to the Pension Rehabilitation 
Administration such sums as may be reasonably necessary for the 
administrative and operating expenses of the Pension Rehabilitation 
Administration.

SEC. 3. PENSION REHABILITATION TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. PENSION REHABILITATION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Pension 
Rehabilitation Trust Fund' (hereafter in this section referred to as 
the `Fund'), consisting of such amounts as may be appropriated or 
credited to such Trust Fund as provided in this section and section 
9602(b).
    ``(b) Transfers to Fund.--
            ``(1) Amounts attributable to treasury bonds.--There shall 
        be credited to the Fund the amounts transferred under section 
        6(b) of the Rehabilitation for Multiemployer Pensions Act.
            ``(2) Loan interest and principal.--
                    ``(A) In general.--The Director of the Pension 
                Rehabilitation Administration established under section 
                2 of the Rehabilitation for Multiemployer Pensions Act 
                shall deposit in the Fund any amounts received from a 
                plan as payment of interest or principal on a loan 
                under section 4 of such Act.
                    ``(B) Interest.--For purposes of subparagraph (A), 
                the term `interest' includes points and other similar 
                amounts.
            ``(3) Transfers from secretary.--The Director of the 
        Pension Rehabilitation Administration shall deposit in the Fund 
        any amounts received from the Secretary under section 2(c) of 
        such Act.
            ``(4) Availability of funds.--Amounts credited to or 
        deposited in the Fund shall remain available until expended.
    ``(c) Expenditures From Fund.--Amounts in the Fund are available 
without further appropriation to the Pension Rehabilitation 
Administration--
            ``(1) for the purpose of making the loans described in 
        section 4 of the Rehabilitation for Multiemployer Pensions Act,
            ``(2) for the payment of principal and interest on bonds 
        issued under section 6 of such Act, and
            ``(3) for administrative and operating expenses of such 
        Administration.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Pension Rehabilitation Trust Fund.''.

SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED BENEFIT PLANS.

    (a) Loan Authority.--
            (1) In general.--The Pension Rehabilitation Administration 
        established under section 2 is authorized--
                    (A) to make loans to multiemployer plans (as 
                defined in section 414(f) of the Internal Revenue Code 
                of 1986) which are defined benefit plans (as defined in 
                section 414(j) of such Code) and which--
                            (i) are in critical and declining status 
                        (within the meaning of section 432(b)(6) of 
                        such Code and section 305(b)(6) of such Act), 
                        including any plan with respect to which a 
                        suspension of benefits has been approved under 
                        section 432(e)(9) of such Code and section 
                        305(e)(9) of such Act; or
                            (ii) are insolvent for purposes of section 
                        418E of such Code, if they became insolvent 
                        after December 16, 2014, and have not been 
                        terminated; and
                    (B) subject to subsection (b), to establish 
                appropriate terms for such loans.
            (2) Consultation.--The Director of the Pension 
        Rehabilitation Administration shall consult with the Secretary 
        of the Treasury, the Secretary of Labor, and the Director of 
        the Pension Benefit Guaranty Corporation before making any loan 
        under paragraph (1), and shall share with such persons the 
        application and plan information with respect to each such 
        loan.
            (3) Establishment of loan program.--
                    (A) In general.--A program to make the loans 
                authorized under this section shall be established not 
                later than March 31, 2018, with guidance regarding such 
                program to be promulgated by the Director of the 
                Pension Rehabilitation Administration, in consultation 
                with the Pension Benefit Guaranty Corporation and the 
                Department of Labor, not later than June 1, 2018.
                    (B) Loans authorized before program date.--Without 
                regard to whether the program under subparagraph (A) 
                has been established, a plan may apply for a loan under 
                this section before either date described in such 
                subparagraph, and the Pension Rehabilitation 
                Administration shall approve the application and make 
                the loan before establishment of the program if 
                necessary to avoid any suspension of the accrued 
                benefits of participants.
    (b) Loan Terms.--The terms of any loan made under subsection (a) 
shall state that--
            (1) the plan shall make payments of interest on the loan 
        for a period of 29 years beginning on the date of the loan;
            (2) final payment of interest and principal shall be due in 
        the 30th year after the date of the loan; and
            (3) as a condition of the loan, the plan sponsor stipulates 
        that--
                    (A) except as provided in subparagraph (B), the 
                plan will not increase benefits, allow any employer 
                participating in the plan to reduce its contributions, 
                or accept any collective bargaining agreement which 
                provides for reduced contribution rates, during the 30-
                year period described in paragraphs (1) and (2);
                    (B) in the case of a plan with respect to which a 
                suspension of benefits has been approved under section 
                432(e)(9) of the Internal Revenue Code of 1986 and 
                section 305(e)(9) of the Employee Retirement Income 
                Security Act of 1974, or under section 418E of such 
                Code, before the loan, the plan will reinstate the 
                suspended benefits (or will not carry out any 
                suspension which has been approved but not yet 
                implemented);
                    (C) the plan sponsor will comply with the 
                requirements of section 6059A of the Internal Revenue 
                Code of 1986; and
                    (D) the plan and plan administrator will meet such 
                other requirements as the Director of the Pension 
                Rehabilitation Administration provides in the loan 
                terms.
    (c) Loan Application.--
            (1) In general.--In applying for a loan under subsection 
        (a), the plan sponsor shall--
                    (A) demonstrate that, except as provided in 
                subparagraph (C)--
                            (i) the loan will enable the plan to avoid 
                        insolvency for at least the 30-year period 
                        described in paragraphs (1) and (2) of 
                        subsection (b) or, in the case of a plan which 
                        is already insolvent, to emerge from insolvency 
                        within and avoid insolvency for the remainder 
                        of such period; and
                            (ii) the plan is reasonably expected to be 
                        able to pay benefits and the interest on the 
                        loan during such period and to accumulate 
                        sufficient funds to repay the principal when 
                        due;
                    (B) provide the information necessary to determine 
                the loan amount under subsection (d);
                    (C) stipulate whether the plan is also applying for 
                financial assistance under section 4261(d) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1431(d)) in combination with the loan to enable 
                the plan to avoid insolvency and to pay benefits, or is 
                already receiving such financial assistance as a result 
                of a previous application;
                    (D) state in what manner the loan proceeds will be 
                invested pursuant to subsection (d), the person from 
                whom any annuity contracts under such subsection will 
                be purchased, and the person who will be the investment 
                manager for any portfolio implemented under such 
                subsection; and
                    (E) include such other information and 
                certifications as the Director of the Pension 
                Rehabilitation Administration shall require.
            (2) Standard for accepting actuarial and plan sponsor 
        determinations and demonstrations in the application.--In 
        evaluating the plan sponsor's application, the Director of the 
        Pension Rehabilitation Administration shall accept the 
        determinations and demonstrations in the application unless the 
        Director, in consultation with the Director of the Pension 
        Benefit Guaranty Corporation and the Secretary of Labor, 
        concludes that the determinations and demonstrations in the 
        application were clearly erroneous.
            (3) Required action; deemed approval.--The Director of the 
        Pension Rehabilitation Administration shall approve or deny any 
        application under this subsection within 90 days after the 
        submission of such application. An application shall be deemed 
        approved unless, within such 90 days, the Director notifies the 
        plan sponsor that the determinations or demonstrations in the 
        application were deemed clearly erroneous under paragraph (2). 
        Any approval or denial of an application by the Director of the 
        Pension Rehabilitation Administration shall be treated as a 
        final agency action for purposes of section 704 of title 5, 
        United States Code.
            (4) Certain plans required to apply.--The plan sponsor of 
        any plan with respect to which a suspension of benefits has 
        been approved under section 432(e)(9) of the Internal Revenue 
        Code of 1986 and section 305(e)(9) of the Employee Retirement 
        Income Security Act of 1974 or under section 418E of such Code, 
        before the date of the enactment of this Act shall apply for a 
        loan under this section. The Director of the Pension 
        Rehabilitation Administration shall provide for such plan 
        sponsors to use the simplified application under subsection 
        (d)(2)(B).
    (d) Loan Amount and Use.--
            (1) Amount of loan.--
                    (A) In general.--Except as provided in subparagraph 
                (B) and paragraph (2), the amount of any loan under 
                subsection (a) shall be, as demonstrated by the plan 
                sponsor on the application under subsection (c), the 
                amount needed to purchase annuity contracts or to 
                implement a portfolio described in paragraph (3)(C) (or 
                a combination of the two) sufficient to provide 
                benefits of participants and beneficiaries of the plan 
                in pay status at the time the loan is made.
                    (B) Plans with suspended benefits.--In the case of 
                a plan which has suspended benefits under section 
                432(e)(9) of the Internal Revenue Code of 1986 and 
                section 305(e)(9) of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1085(e)(9)) or under 
                section 418E of such Code--
                            (i) the suspension of benefits shall not be 
                        taken into account in applying paragraph (1); 
                        and
                            (ii) the loan amount shall be the amount 
                        sufficient to provide benefits of participants 
                        and beneficiaries of the plan in pay status at 
                        the time the loan is made, determined without 
                        regard to the suspension, including retroactive 
                        payment of benefits which would otherwise have 
                        been payable during the period of the 
                        suspension.
            (2) Coordination with pbgc financial assistance.--
                    (A) In general.--In the case of a plan which is 
                also applying for financial assistance under section 
                4261(d) of the Employee Retirement Income Security Act 
                of 1974 (29 U.S.C. 1431(d))--
                            (i) the plan sponsor shall submit the loan 
                        application and the application for financial 
                        assistance jointly to the Pension 
                        Rehabilitation Administration and the Pension 
                        Benefit Guaranty Corporation with the 
                        information necessary to determine the amount 
                        under subparagraph (B); and
                            (ii) if such financial assistance is 
                        granted, the amount of the loan under 
                        subsection (a) shall be the amount described in 
                        paragraph (1) reduced by the amount of such 
                        financial assistance.
                    (B) Plans already receiving pbgc assistance.--The 
                Director of the Pension Rehabilitation Administration 
                shall provide for a simplified application for the loan 
                under this section which may be used by an insolvent 
                plan which has not been terminated and which is already 
                receiving financial assistance (other than under 
                section 4261(d) of such Act) from the Pension Benefit 
                Guaranty Corporation at the time of the application for 
                the loan under this section.
            (3) Use of loan funds.--
                    (A) In general.--The loan received under subsection 
                (a) shall be used to purchase annuity contracts which 
                meet the requirements of subparagraph (B) or to 
                implement a portfolio described in subparagraph (C) (or 
                a combination of the two) to provide the benefits 
                described in paragraph (1).
                    (B) Annuity contract requirements.--The annuity 
                contracts purchased under subparagraph (A) shall be 
                issued by an insurance company which is licensed to do 
                business under the laws of any State and which is rated 
                A or better by a nationally recognized statistical 
                rating organization, and the purchase of such contracts 
                shall meet all applicable fiduciary standards under the 
                Employee Retirement Income Security Act of 1974.
                    (C) Portfolio.--
                            (i) In general.--A portfolio described in 
                        this subparagraph is--
                                    (I) a cash matching portfolio or 
                                duration matching portfolio consisting 
                                of investment grade (as rated by a 
                                nationally recognized statistical 
                                rating organization) fixed income 
                                investments, including United States 
                                dollar-denominated public or private 
                                debt obligations issued or guaranteed 
                                by the United States or a foreign 
                                issuer, which are tradeable in United 
                                States currency and are issued at fixed 
                                or zero coupon rates; or
                                    (II) any other portfolio prescribed 
                                by the Secretary of the Treasury in 
                                regulations which has a similar risk 
                                profile to the portfolios described in 
                                subclause (I) and is equally protective 
                                of the interests of participants and 
                                beneficiaries.
                        Once implemented, such a portfolio shall be 
                        maintained until all liabilities to 
                        participants and beneficiaries in pay status at 
                        the time of the loan are satisfied.
                            (ii) Fiduciary duty.--Any investment 
                        manager of a portfolio under this subparagraph 
                        shall acknowledge in writing that such person 
                        is a fiduciary under the Employee Retirement 
                        Income Security Act of 1974 with respect to the 
                        plan.
                            (iii) Treatment of participants and 
                        beneficiaries.--Participants and beneficiaries 
                        covered by a portfolio under this subparagraph 
                        shall continue to be treated as participants 
                        and beneficiaries of the plan.
                    (D) Accounting.--
                            (i) In general.--Annuity contracts 
                        purchased and portfolios implemented under this 
                        paragraph shall be accounted for separately 
                        from the other assets of the plan, and the 
                        proceeds thereof shall be used solely to 
                        provide the benefits described in paragraph (1) 
                        until all such benefits have been paid.
                            (ii) Oversight of non-annuity 
                        investments.--
                                    (I) In general.--Any portfolio 
                                implemented under this paragraph shall 
                                be subject to oversight by the Pension 
                                Rehabilitation Administration, 
                                including a mandatory triennial review 
                                of the adequacy of the portfolio to 
                                provide the benefits described in 
                                paragraph (1) and approval (to be 
                                provided within a reasonable period of 
                                time) of any decision by the plan 
                                sponsor to change the investment 
                                manager of the portfolio.
                                    (II) Remedial action.--If the 
                                triennial review under subclause (I) 
                                determines an inadequacy, the plan 
                                sponsor shall take remedial action to 
                                ensure that the inadequacy will be 
                                cured within 5 years of the review.
                    (E) Ombudsperson.--The Participant and Plan Sponsor 
                Advocate established under section 4004 of the Employee 
                Retirement Income Security Act of 1974 shall act as 
                ombudsperson for participants and beneficiaries on 
                behalf of whom annuity contracts are purchased or who 
                are covered by a portfolio under this paragraph.
    (e) Loan Default.--If a plan is unable to make any payment on a 
loan under this section when due, the Pension Rehabilitation 
Administration shall negotiate with the plan sponsor revised terms for 
repayment reflecting the plan's ability to make payments, which may 
include installment payments over a reasonable period and, if the 
Pension Rehabilitation Administration deems necessary to avoid any 
suspension of the accrued benefits of participants, forgiveness of a 
portion of the loan principal.
    (f) Authority To Issue Rules, etc.--The Director of the Pension 
Rehabilitation Administration established under section 2, in 
consultation with the Pension Benefit Guaranty Corporation and the 
Department of Labor, is authorized to issue rules regarding the form, 
content, and process of applications for loans under this section, 
actuarial standards and assumptions to be used in making estimates and 
projections for purposes of such applications, and assumptions 
regarding interest rates, mortality, and distributions with respect to 
a portfolio described in subsection (d)(3)(C).
    (g) Coordination With Taxation of Unrelated Business Income.--
Subparagraph (A) of section 514(c)(6) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii)(II) 
        and inserting ``, or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) indebtedness with respect to a 
                        multiemployer plan under a loan made by the 
                        Pension Rehabilitation Administration pursuant 
                        to section 4 of the Rehabilitation for 
                        Multiemployer Pensions Act.''.

SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND FUNDING RULES.

    (a) Amendment to Internal Revenue Code of 1986.--Section 432 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Rehabilitation for Multiemployer 
                Pensions Act withdraws from the plan before the end of 
                the 30-year period beginning on the date of the loan, 
                the withdrawal liability of such employer shall be 
                determined under the Employee Retirement Income 
                Security Act of 1974--
                            ``(i) by applying section 4219(c)(1)(D) of 
                        the Employee Retirement Income Security Act of 
                        1974 as if the plan were terminating by the 
                        withdrawal of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044 of the Employee Retirement Income 
                        Security Act of 1974, as prescribed in the 
                        regulations under section 4281 of the Employee 
                        Retirement Income Security Act of 1974 in the 
                        case of such a mass withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Rehabilitation for Multiemployer Pensions Act shall not 
                be taken into account in determining the withdrawal 
                liability of any employer under subparagraph (A), but 
                the amount equal to the greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be so taken into account.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the 
        Rehabilitation for Multiemployer Pensions Act--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 412,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 305 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085) is amended by adding at the end the following new 
subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Rehabilitation for Multiemployer 
                Pensions Act withdraws from the plan before the end of 
                the 30-year period beginning on the date of the loan, 
                the withdrawal liability of such employer shall be 
                determined--
                            ``(i) by applying section 4219(c)(1)(D) as 
                        if the plan were terminating by the withdrawal 
                        of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044, as prescribed in the regulations 
                        under section 4281 in the case of such a mass 
                        withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Rehabilitation for Multiemployer Pensions Act shall not 
                be taken into account in determining the withdrawal 
                liability of any employer under subparagraph (A), but 
                the amount equal to the greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be so taken into account.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the 
        Rehabilitation for Multiemployer Pensions Act--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 302,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.

SEC. 6. ISSUANCE OF TREASURY BONDS.

    (a) In General.--The Secretary of the Treasury shall issue bonds as 
authorized by section 3102 of title 31, United States Code, in an 
amount necessary to fund the loan program under section 4 of this Act, 
as determined in consultation with the Director of the Pension 
Rehabilitation Administration established under section 2.
    (b) Transfers to Pension Rehabilitation Trust Fund.--The Secretary 
of the Treasury shall from time to time transfer an amount equal to the 
proceeds of the issue under subsection (a), from the general fund of 
the Treasury to the Pension Rehabilitation Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986.

SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    (a) In General.--Subpart E of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    ``(a) In General.--In the case of a plan receiving a loan under 
section 4(a) of the Rehabilitation for Multiemployer Pensions Act, with 
respect to the first plan year beginning after the date of the loan and 
each of the 29 succeeding plan years, not later than the 90th day of 
each such plan year the plan sponsor shall file with the Secretary a 
report (including appropriate documentation and actuarial 
certifications from the plan actuary, as required by the Secretary) 
that contains--
            ``(1) the funded percentage (as defined in section 
        432(i)(2)) as of the first day of such plan year, and the 
        underlying actuarial value of assets (determined with regard, 
        and without regard, to annuity contracts purchased and 
        portfolios implemented with proceeds of such loan) and 
        liabilities (including any amounts due with respect to such 
        loan) taken into account in determining such percentage,
            ``(2) the market value of the assets of the plan 
        (determined as provided in paragraph (1)) as of the last day of 
        the plan year preceding such plan year,
            ``(3) the total value of all contributions made by 
        employers and employees during the plan year preceding such 
        plan year,
            ``(4) the total value of all benefits paid during the plan 
        year preceding such plan year,
            ``(5) cash flow projections for such plan year and the 9 
        succeeding plan years, and the assumptions used in making such 
        projections,
            ``(6) funding standard account projections for such plan 
        year and the 9 succeeding plan years, and the assumptions 
        relied upon in making such projections,
            ``(7) the total value of all investment gains or losses 
        during the plan year preceding such plan year,
            ``(8) any significant reduction in the number of active 
        participants during the plan year preceding such plan year, and 
        the reason for such reduction,
            ``(9) a list of employers that withdrew from the plan in 
        the plan year preceding such plan year, and the resulting 
        reduction in contributions,
            ``(10) a list of employers that paid withdrawal liability 
        to the plan during the plan year preceding such plan year and, 
        for each employer, a total assessment of the withdrawal 
        liability paid, the annual payment amount, and the number of 
        years remaining in the payment schedule with respect to such 
        withdrawal liability,
            ``(11) any material changes to benefits, accrual rates, or 
        contribution rates during the plan year preceding such plan 
        year, and whether such changes relate to the terms of the loan,
            ``(12) details regarding any funding improvement plan or 
        rehabilitation plan and updates to such plan,
            ``(13) the number of participants and beneficiaries during 
        the plan year preceding such plan year who are active 
        participants, the number of participants and beneficiaries in 
        pay status, and the number of terminated vested participants 
        and beneficiaries,
            ``(14) the amount of any financial assistance received 
        under section 4261 of the Employee Retirement Income Security 
        Act of 1974 to pay benefits during the preceding plan year, and 
        the total amount of such financial assistance received for all 
        preceding years,
            ``(15) the information contained on the most recent annual 
        funding notice submitted by the plan under section 101(f) of 
        the Employee Retirement Income Security Act of 1974,
            ``(16) the information contained on the most recent annual 
        return under section 6058 and actuarial report under section 
        6059 of the plan, and
            ``(17) copies of the plan document and amendments, other 
        retirement benefit or ancillary benefit plans relating to the 
        plan and contribution obligations under such plans, a breakdown 
        of administrative expenses of the plan, participant census data 
        and distribution of benefits, the most recent actuarial 
        valuation report as of the plan year, copies of collective 
        bargaining agreements, and financial reports, and such other 
        information as the Secretary, in consultation with the Director 
        of the Pension Rehabilitation Administration, may require.
    ``(b) Electronic Submission.--The report required under subsection 
(a) shall be submitted electronically.
    ``(c) Information Sharing.--The Secretary shall share the 
information in the report under subsection (a) with the Secretary of 
Labor and the Director of the Pension Benefit Guaranty Corporation.
    ``(d) Report to Participants, Beneficiaries, and Employers.--Each 
plan sponsor required to file a report under subsection (a) shall, 
before the expiration of the time prescribed for the filing of such 
report, also provide a summary (written in a manner so as to be 
understood by the average plan participant) of the information in such 
report to participants and beneficiaries in the plan and to each 
employer with an obligation to contribute to the plan.''.
    (b) Penalty.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``, 6059A (relating to reports of plans 
        receiving pension rehabilitation loans)'' after ``deferred 
        compensation)'';
            (2) by inserting ``($100 in the case of failures under 
        section 6059A)'' after ``$25''; and
            (3) by adding at the end the following: ``In the case of a 
        failure with respect to section 6059A, the amount imposed under 
        this subsection shall not be paid from the assets of the 
        plan.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
part III of subchapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 6059A. Reports of plans receiving pension rehabilitation 
                            loans.''.

SEC. 8. PBGC FINANCIAL ASSISTANCE.

    (a) In General.--Section 4261 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431) is amended by adding at the end 
the following new subsection:
    ``(d)(1) The plan sponsor of a multiemployer plan--
            ``(A) which is in critical and declining status (within the 
        meaning of section 305(b)(6)), or
            ``(B) which is insolvent but has not been terminated and is 
        receiving assistance from the corporation (other than 
        assistance under this subsection),
and which is applying for a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pensions Act may also apply to the 
corporation for financial assistance under this subsection, by jointly 
submitting such applications in accordance with section 4(d)(2) of such 
Act. The application for financial assistance under this subsection 
shall demonstrate, based on projections by the plan actuary, that after 
the receipt of the anticipated loan amount under section 4(a) of such 
Act, the plan will still become (or remain) insolvent within the 30-
year period beginning on the date of the loan.
    ``(2) In the case of a plan described in paragraph (1)(A), the 
financial assistance provided pursuant to such application under this 
subsection shall be the amount (determined by the plan actuary and 
submitted on the application) equal to the sum of--
            ``(A) the percentage of benefits of participants and 
        beneficiaries of the plan in pay status at the time of the 
        application, and
            ``(B) the percentage of future benefits to which 
        participants who have separated from service but are not yet in 
        pay status are entitled,
which, if such percentage were paid by the corporation in combination 
with the loan, would allow the plan to avoid the projected insolvency 
and be projected to have increasing assets over any 5-year period 
following the repayment of the loan. Such amount shall not exceed the 
maximum guaranteed benefit with respect to all participants and 
beneficiaries of the plan under sections 4022A and 4022B. For this 
purpose, the maximum guaranteed benefit amount shall be determined by 
disregarding any loan available from the Pension Rehabilitation 
Administration and shall be determined as if the plan were insolvent on 
the date of the application. Further, the present value of the maximum 
guaranteed benefit amount with respect to such participants and 
beneficiaries may be calculated in the aggregate, rather than by 
reference to the benefit of each such participant or beneficiary.
    ``(3) In the case of a plan described in paragraph (1)(B), the 
financial assistance provided pursuant to such application under this 
subsection shall be the amount (determined by the plan actuary and 
submitted on the application) which, if such amount were paid by the 
corporation in combination with the loan and any other assistance being 
provided to the plan by the corporation at the time of the application, 
would enable the plan to emerge from insolvency.
    ``(4) Subsections (b) and (c) shall apply to financial assistance 
under this subsection as if it were provided under subsection (a), 
except that the terms for repayment under subsection (b)(2) shall not 
require the financial assistance to be repaid before the date on which 
the loan under section 4(a) of the Rehabilitation for Multiemployer 
Pensions Act is repaid in full.
    ``(5) The corporation may forgo repayment of the financial 
assistance provided under this subsection if necessary to avoid any 
suspension of the accrued benefits of participants.''.
    (b) Appropriations.--There is appropriated to the Director of the 
Pension Benefit Guaranty Corporation such sums as may be necessary for 
each fiscal year to provide the financial assistance described in 
section 4261(d) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1431(d)) (as added by this section) (including necessary 
administrative and operating expenses relating to such assistance).
                                 <all>