[Congressional Record Volume 166, Number 58 (Tuesday, March 24, 2020)]
[Senate]
[Pages S2015-S2019]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1574. Mr. CRAMER submitted an amendment intended to be proposed by
him to the bill H.R. 748, to amend the Internal Revenue Code of 1986 to
repeal the excise tax on high cost employer-sponsored health coverage;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
TITLE _--BUTCH LEWIS ACT OF 2020
SEC. ___1. SHORT TITLE.
This title may be cited as the ``Butch Lewis Act of 2020''.
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 the 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 the
Butch Lewis Act of 2020.
``(2) Loan interest and principal.--
``(A) In general.--The Director of the Pension
Rehabilitation Administration established under the Butch
Lewis Act of 2020 shall deposit in the Fund any amounts
received from a plan as payment of interest or principal on a
loan under 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 for
administrative and operating expenses pursuant to 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 the
Butch Lewis Act of 2020,
``(2) for the payment of principal and interest on
obligations issued under 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 this Act 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) as of the date of the enactment of
this Act, or 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 as of such date;
(ii) as of such date of enactment, are in critical status
(within the meaning of section 432(b)(2) of such Code and
section
[[Page S2016]]
305(b)(2) of such Act), have a funded percentage of less than
40 percent (as determined for purposes of section 432 of such
Code and section 305 of such Act), and have a ratio of active
to inactive participants which is less than 2 to 3; or
(iii) are insolvent for purposes of section 418E of such
Code as of such date of enactment, 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
September 30, 2019, 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 December 31, 2019.
(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.--
(1) In general.--The terms of any loan made under
subsection (a) shall state that--
(A) the plan shall make payments of interest on the loan
for a period of 29 years beginning on the date of the loan
(or 19 years in the case of a plan making the election under
subsection (c)(5));
(B) final payment of interest and principal shall be due in
the 30th year after the date of the loan (except as provided
in an election under subsection (c)(5)); and
(C) as a condition of the loan, the plan sponsor stipulates
that--
(i) except as provided in clause (ii), 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 subparagraphs
(A) and (B);
(ii) 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);
(iii) the plan sponsor will comply with the requirements of
section 6059A of the Internal Revenue Code of 1986;
(iv) the plan will continue to pay all premiums due under
section 4007 of the Employee Retirement Income Security Act
of 1974; and
(v) the plan and plan administrator will meet such other
requirements as the Director of the Pension Rehabilitation
Administration provides in the loan terms.
The terms of the loan shall not make reference to whether the
plan is receiving financial assistance under section 4261(d)
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1431(d)) or to any adjustment of the loan amount under
subsection (d)(2)(A)(ii).
(2) Interest rate.--Except as provided in the second
sentence of this paragraph and subsection (c)(5), loans made
under subsection (a) shall have as low an interest rate as is
feasible. Such rate shall be determined by the Pension
Rehabilitation Administration and shall--
(A) not be lower than the rate of interest on 30-year
Treasury securities on the first day of the calendar year in
which the loan is issued; and
(B) not exceed the greater of--
(i) a rate .2 percent higher than such rate of interest on
such date; or
(ii) the rate necessary to collect revenues sufficient to
administer the program under this section.
(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 subparagraphs (A)
and (B) of subsection (b)(1) 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 plan's most recently filed Form 5500 as of
the date of application and any other 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 are unreasonable or are inconsistent with
any rules issued by the Director pursuant to subsection (g).
(3) Required actions; 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 of the denial of such application
and the reasons for such denial. 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. The
Pension Rehabilitation Administration shall make the loan
pursuant to any application promptly after the approval of
such application.
(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).
(5) Incentive for early repayment.--The plan sponsor may
elect at the time of the application to repay the loan
principal, along with the remaining interest, over the 10-
year period beginning with the 21st year after the date of
the loan. In the case of a plan making this election, the
interest on the loan shall be reduced by 0.5 percent.
(d) Loan Amount and Use.--
(1) Amount of loan.--
(A) In general.--Except as provided in subparagraphs (B)
and (C) 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, and terminated
vested benefits, at the time the loan is made.
(B) Limitation based on ability to repay.--If at the time
of the application under subsection (c) the plan sponsor
determines that, based on a repayment schedule that would
provide for repayment of the full amount determined under
subparagraph (A) or (C)(ii) within the 30-year period
described in subsection (b)(1), making payments would cause
the plan to be within 18 months of becoming insolvent at any
point during such period, the loan amount shall be such
lesser amount as the plan sponsor determines the plan will be
able to repay without becoming within 18 months of
insolvency.
(C) Plans with suspended benefits.--In the case of a plan
with respect to which a suspended 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 (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 subparagraph (A); and
(ii) except as provided in subparagraph (B), the loan
amount shall be the amount sufficient to provide benefits of
participants and beneficiaries of the plan in pay status and
terminated vested benefits 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
[[Page S2017]]
necessary to determine the eligibility for and amount of the
loan under this section and the financial assistance under
section 4261(d) of such Act; and
(ii) if such financial assistance is granted, the amount of
the loan under subsection (a) shall not exceed an amount
equal to the excess of--
(I) the amount determined under paragraph (1)(A) or
(1)(C)(ii) (whichever is applicable), without regard to
paragraph (1)(B); over
(II) 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, including for
purposes of title IV of the Employee Retirement Income
Security Act of 1974.
(D) Accounting.--
(i) In general.--Annuity contracts purchased and portfolios
implemented under this paragraph shall be used solely to
provide the benefits described in paragraph (1) until all
such benefits have been paid and shall be accounted for
separately from the other assets of the plan.
(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) Collection of Repayment.--Except as provided in
subsection (f), the Pension Rehabilitation Administration
shall make every effort to collect repayment of loans under
this section in accordance with section 3711 of title 31,
United States Code.
(f) 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 (including installment
payments over a reasonable period or forgiveness of a portion
of the loan principal), but only to the extent necessary to
avoid insolvency in the subsequent 18 months.
(g) Authority To Issue Rules, etc.--The Director of the
Pension Rehabilitation Administration, 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).
(h) 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 the Butch Lewis Act of 2020.''.
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 the Butch Lewis
Act of 2020 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 using loan funds received under the Butch Lewis
Act of 2020 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 such
Act,
shall be so taken into account.
``(2) Coordination with funding requirements.--In the case
of a plan which receives a loan under the Butch Lewis Act of
2020--
``(A) annuity contracts purchased and portfolios
implemented using loan funds received under 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 the Butch Lewis
Act of 2020 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 using loan funds received under the Butch Lewis
Act of 2020 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
[[Page S2018]]
``(ii) the remaining payments due on the loan under such
Act,
shall be so taken into account.
``(2) Coordination with funding requirements.--In the case
of a plan which receives a loan under the Butch Lewis Act of
2020--
``(A) annuity contracts purchased and portfolios
implemented using loan funds received under 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.
The Secretary of the Treasury (in consultation with the
Director of the Pension Rehabilitation Administration
established under this Act) shall from time to time transfer
from the general fund of the Treasury to the Pension
Rehabilitation Trust Fund established under section 9512 of
the Internal Revenue Code of 1986 such amounts as are
necessary to fund the loan program under this Act, including
from proceeds from the Secretary's issuance of obligations
under chapter 31 of title 31, United States Code.
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 the Butch Lewis Act of 2020, 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)) as of the date of the enactment
of this subsection, or with respect to which a suspension of
benefits has been approved under section 305(e)(9) as of such
date;
``(B) which, as of such date of enactment, is in critical
status (within the meaning of section 305(b)(2)), has a
funded percentage of less than 40 percent (as determined for
purposes of section 305), and has a ratio of active to
inactive participants which is less than 2 to 3; or
``(C) which is insolvent for purposes of section 418E of
the Internal Revenue Code of 1986 as of such date of
enactment, if the plan became insolvent after December 16,
2014, and has not been terminated,
and which is applying for a loan under the Butch Lewis Act of
2020 may also apply to the corporation for financial
assistance under this subsection, by jointly submitting such
applications in accordance with the rules 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
such Act, the plan will still become (or remain) insolvent
within the 30-year period beginning on the date of the loan.
``(2) In reviewing an application under paragraph (1), the
corporation shall review the demonstrations and assumptions
submitted with the loan application under the Butch Lewis Act
of 2020 and provide guidance regarding such assumptions prior
to approving any application for financial assistance under
this subsection. The corporation may deny any application if
the assumptions and determinations are unreasonable, or
inconsistent with rules issued by the corporation, and the
plan and the corporation are unable to reach agreement on
such assumptions and determinations.
``(3) In the case of a plan described in paragraph (1)(A)
or (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) 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
projected insolvency. 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
[[Page S2019]]
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.
``(4) In the case of a plan described in paragraph (1)(C),
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 the projected insolvency.
``(5)(A) Except as provided in subparagraph (B), the
corporation shall provide the financial assistance under this
subsection only in such amounts as the corporation
determines, at the time of approval and at the beginning of
each plan year beginning thereafter during the period of
assistance, are necessary for the plan to avoid insolvency
during the 5 plan year period beginning with the current plan
year.
``(B) In the case of a plan described in paragraph (1)(C),
the financial assistance under this subsection shall be
provided in a lump sum if deemed necessary by the
corporation, and in no case later than December 31, 2020.
``(6) 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 the
Butch Lewis Act of 2020 is repaid in full.
``(7) 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).
______