[House Report 116-159]
[From the U.S. Government Publishing Office]


116th Congress   }                                      {   Rept. 116-159
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {     Part 1

======================================================================



 
         REHABILITATION FOR MULTIEMPLOYER PENSIONS ACT OF 2019

                                _______
                                

                 July 18, 2019.--Ordered to be printed

                                _______
                                

Mr. Neal, from the Committee on Ways and Means, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 397]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 397) 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, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Summary and Background...........................................

                                   11

        A. Purpose and Summary...................................    11
        B. Background and Need for Legislation...................    11
        C. Legislative History...................................    13
  II. Explanation of the Bill........................................13
        A. Establishment of Pension Rehabilitation Administration 
            to Provide Loans to Certain Multiemployer Plans 
            (secs. 2-8 of the bill and secs. 432, 6059A, and 9512 
            of the Code and secs. 305 and 4261 of ERISA).........    13
 III. Votes of the Committee.........................................32
  IV. Budget Effects of the Bill.....................................38
        A. Committee Estimate of Budgetary Effects...............    38
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures Budget Authority........................    39
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................    39
   V. Other Matters to be Discussed Under the Rules of the House.....39
        A. Committee Oversight Findings and Recommendations......    39
        B. Statement of General Performance Goals and Objectives.    39
        C. Information Relating to Unfunded Mandates.............    39
        D. Applicability of House Rule XXI, Clause 5(b)..........    39
        E. Tax Complexity Analysis...............................    40
        F. Congressional Earmarks, Limited Tax Benefits, and 
            Limited Tariff Benefits..............................    40
        G. Duplication of Federal Programs.......................    40
        H. Hearings..............................................    40
  VI. Changes in Existing Law Made by the Bill.......................40
        A. Changes in Existing Law Proposed by the Bill..........    40
 VII. Dissenting Views..............................................129

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Rehabilitation for Multiemployer 
Pensions Act of 2019''.

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 section 6 of 
        the Rehabilitation for Multiemployer Pensions Act of 2019.
          ``(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 
                of 2019 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 
        of 2019,
          ``(2) for the payment of principal and interest on 
        obligations 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 the Employee 
                        Retirement and Income Security Act) as of the 
                        date of the enactment of this section, 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 305(b)(2) of 
                        such Act), have a modified funded percentage of 
                        less than 40 percent, and have a ratio of 
                        active to inactive participants which is less 
                        than 2 to 5; 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.
        For purposes of subparagraph (A)(ii), the term ``modified 
        funded percentage'' means the percentage equal to a fraction 
        the numerator of which is current value of plan assets (as 
        defined in section 3(26) of such Act) and the denominator of 
        which is current liabilities (as defined in section 
        431(c)(6)(D) of such Code and section 304(c)(6)(D) of such 
        Act).
          (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 Director of the Pension Benefit Guaranty 
                Corporation, the Secretary of the Treasury, and the 
                Secretary 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, the Secretary of the Treasury, 
        and the Secretary of Labor, concludes that any such 
        determinations or demonstrations in the application (or any 
        underlying assumptions) 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, at least as 
        rapidly as equal installments 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 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, and terminated vested benefits, at the 
                time the loan is made.
                  (B) Plans with suspended benefits.--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 (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) 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 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)(B)(ii) 
                                (whichever is applicable); 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.--Notwithstanding section 
                432(f)(2)(A)(ii) of the Internal Revenue Code of 1986 
                and section 305(f)(2)(A)(ii) of such Act, the loan 
                received under subsection (a) shall only 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, 
                        and terminated vested participants, 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 
                                oversight under subclause (I) 
                                determines an inadequacy, the plan 
                                sponsor shall take remedial action to 
                                ensure that the inadequacy will be 
                                cured within 2 years of such 
                                determination.
                  (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 Director of the 
Pension Benefit Guaranty Corporation, the Secretary of the Treasury, 
and the Secretary 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 section 4 of the Rehabilitation for 
                        Multiemployer Pensions Act of 2019.''.

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 of 2019 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 of 2019 
                shall not be taken into account as plan assets 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 taken into account as unfunded vested benefits 
                in determining such withdrawal liability.
          ``(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 of 2019--
                  ``(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.

  The Secretary of the Treasury 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 
section 4 of 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 
section 4(a) of the Rehabilitation for Multiemployer Pensions Act of 
2019, 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(j)(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 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).

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 397, the ``Rehabilitation for Multiemployer 
Pensions Act'' as ordered reported by the Committee on Ways and 
Means on July 10, 2019, amends the Internal Revenue Code of 
1986 to create a loan program for certain multiemployer pension 
plans, and for other purposes.

                 B. Background and Need for Legislation

    A multiemployer plan is a pension plan created through an 
agreement between two or more employers and a union, run by a 
board of trustees, with an equal number of employer and union 
trustees. Usually the employers are in the same or related 
industries.\1\
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    \1\Multiemployer Insurance Program Facts. Pension Benefit Guaranty 
Corporation (PBGC). Available at https://www.pbgc.gov/about/factsheets/
page/multi-facts.
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    Approximately 3.1% of all defined benefit pension plans are 
multiemployer plans, covering 28% of all defined benefit 
pension plan participants.\2\ There are about 1,400 
multiemployer defined benefit pension plans, covering about 10 
million participants.\3\ Most multiemployer plans are projected 
to remain solvent over the next twenty years.\4\ About 130 
multiemployer pension plans are projected to become insolvent 
over the next twenty years.\5\ These plans are in critical and 
declining status, as defined under the Pension Protection Act 
of 2006, meaning they will run out of money in the next 20 
years.\6\
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    \2\John J. Topoleski, ``Multiemployer Defined Benefit (DB) Pension 
Plans: A Primer,'' R43305 at 2, Congressional Research Service. 
September 24, 2018. Available at https://www.crs.gov/reports/pdf/
R43305.
    \3\Topoleski at 4.
    \4\FY 2017 PBGC Projections Report at 1, Pension Benefit Guaranty 
Corporation, https://www.pbgc.gov/sites/default/files/fy-2017-
projections-report.pdf.
    \5\Id.
    \6\Technically, a plan is in critical and declining status if: the 
plan satisfies the criteria for critical status (under ERISA section 
305(b)(2)) or elects to be in critical status (under ERISA section 
305(b)(4)); and the plan is projected to become insolvent during the 
current plan year or any of the 14 succeeding plan years (or 19 
succeeding plan years if the plan has a ratio of inactive participants 
to active participants that exceeds two to one or if the funded 
percentage of the plan is less than 80 percent; PBGC analysis of 2014 
filings indicated that over 90% of critical status plans meet one of 
these criteria and must test using the 19 year period).
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    The failure of these plans jeopardizes the solvency of the 
Pension Benefit Guaranty Corporation (PBGC) multiemployer 
program and the entire multiemployer pension system. As of 
2018, the PBGC multiemployer program reported a deficit of 
about $53.9 billion.\7\ PBGC estimates that the cost to provide 
full plan benefits for multiemployer plans currently insolvent 
or expected to be insolvent over the next 20 years is about 
$110 billion. Factoring in the PBGC guarantee level, the cost 
is estimated to be $60 billion. Thus, the failure of any one of 
many large troubled ongoing plans could trigger PBGC's 
insolvency.
---------------------------------------------------------------------------
    \7\FY 2018 Annual Report of PBGC at 11, https://www.pbgc.gov/sites/
default/files/pbgc-annual-report-2018.pdf.
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    The largest troubled plan, the Central States, Southeast 
and Southwest Areas Pension Plan, is projected to become 
insolvent in 2025.\8\ PBGC's Multiemployer Program is also 
projected to become insolvent in 2025.\9\ At that point, PBGC 
will not have enough premium income to cover benefits at the 
current guarantee level for any plan receiving PBGC financial 
assistance.\10\ Therefore, if a certain large plan or plans 
become insolvent, and PBGC becomes insolvent, participants and 
beneficiaries will face severe cuts, beyond the statutorily 
guaranteed level.
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    \8\2017 Annual Funding Notice for Central States, Southeast and 
Southwest Pension Plan at 2, https://mycentralstatespension.org/-/
media/Pension/PDFs/Legal/annual_funding_notice.pdf.
    \9\FY 2018 Annual Report of PBGC at 4.
    \10\``When the program becomes insolvent . . . the only money 
available to provide financial assistance will be incoming 
multiemployer premiums and thus PBGC will be only able to pay financial 
assistance to the extent of PBGC's multiemployer premium income.'' FY 
2018 Annual Report of PBGC at 27.
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    In addition to the negative effects on participants and 
beneficiaries, employers that contribute to these plans may 
face increased contribution costs and escalating withdrawal 
liability.\11\ Moreover, the failure of the multiemployer 
pensions system could have significant economic effects. It is 
estimated that the 10-year cost to the U.S. government of not 
solving the multiemployer pension crisis is between $170 
billion and $240 billion.\12\ These estimates include costs 
from several sources: federal tax revenue loss from pension and 
pension-based output; losses from active wages and wage-based 
output, which vary depending on whether the employment loss 
will be relatively small or major; and increases in the federal 
safety net. These costs will continue for decades after the 
first 10-year budget window and, on a net present value basis, 
will cost between $332 billion and $479 billion over the 30-
year period between 2019-2048.\13\
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    \11\The Multiemployer Pension Plan Crisis: Businesses and Jobs at 
Risk at 3-4, U.S. Chamber of Commerce, Employment Policy Division. June 
13, 2018. Available at https://www.
uschamber.com/sites/default/files/
multiemployer_report_businesses_and_jobs_at_risk_final.pdf.
    \12\Testimony of Mariah M. Becker, MAAA, EA, ACA at 12, on Behalf 
of the National Coordinating Committee for Multiemployer Plans to the 
House Education and Labor Committee Subcommittee on Health, Employment, 
Labor and Pensions, March 7, 2019, https://edlabor.house.gov/imo/media/
doc/BeckerTestimony030719.pdf.
    \13\Id.
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    H.R. 397 would support troubled multiemployer pension plans 
financially so that they avoid or emerge from insolvency. The 
bill would create a new agency within the Treasury Department 
called the Pension Rehabilitation Administration (PRA) that 
would sell Treasury-issued bonds and obligations in the open 
market to large investors. The PRA would then lend the money 
from the sale of the bonds to financially-troubled 
multiemployer pension plans. Plans would be required to use the 
loan to purchase annuities or make low-risk investments (or a 
combination) to pay for the benefits for retirees and 
terminated vested participants. A plan would have thirty years 
to improve its solvency and repay the loan. For certain plans 
that cannot avoid insolvency even with the loan, PBGC would 
provide financial assistance to make up the difference.

                         C. Legislative History


Background

    H.R. 397, the ``Rehabilitation for Multiemployer Pensions 
Act of 2019,'' was introduced on January 9, 2019, and was 
referred to the Committee on Education and Labor and in 
addition the Committees on Ways and Means and Appropriations.

Committee hearings

    On February 6, 2019, the Ways and Means Committee held a 
hearing on ``Improving Retirement Security for America's 
Workers.'' Witnesses included Ms. Nancy Altman, President, 
Social Security Works; Mr. Andrew Biggs, Resident Scholar, 
American Enterprise Institute; Mr. Roger J. Crandall, Chairman, 
President & CEO, MassMutual; Robin Diamonte, Corporate Vice 
President, Pension Investments, United Technologies; Mr. Luke 
Huffstutter, Owner, Annastasia Salon and Summit Salon Academy, 
Portland, OR; Ms. Cindy McDaniel, Co-director, Missouri-Kansas 
City Committee to Protect Pensions; and Ms. Diane Oakley, 
Executive Director, National Institute on Retirement Security.
    In the 115th Congress, the Joint Select Committee on 
Solvency of Multiemployer Pension Plans held several hearings 
on these issues, including hearings on: April 18, 2018, ``The 
History and Structure of the Multiemployer Pension System,'' 
May 17, 2018, ``The Structure and Financial Outlook of the 
Pension Benefit Guaranty Corporation,'' June 13, 2018, 
``Employer Perspectives on Multiemployer Pension Plans,'' July 
13, 2018, ``Understanding What's at Stake for Current Workers 
and Retirees,'' and July 25, 2018, ``How the Multiemployer 
Pension System Affects Stakeholders.

Committee action

    The Committee on Ways and Means marked up H.R. 397 on July 
10, 2019, and ordered the bill, as amended, favorably reported 
(with a quorum being present) by a vote of 25 yeas and 17 nays.

                      II. EXPLANATION OF THE BILL


 A. Establishment of Pension Rehabilitation Administration to Provide 
 Loans to Certain Multiemployer Plans (SECS. 2-8 of the bill and secs. 
   432, 6059A, and 9512 of the Code and secs. 305 and 4261 of ERISA)


                              PRESENT LAW

Multiemployer plans

    A multiemployer plan is a plan to which more than one 
unrelated employer contributes, that is established pursuant to 
one or more collective bargaining agreements, and which meets 
such other requirements as specified by the Secretary of 
Labor.\14\ Multiemployer plans are governed by a board of 
trustees consisting of an equal number of employer and employee 
representatives, referred to as the plan sponsor. In general, 
the level of contributions to a multiemployer plan is specified 
in the applicable collective bargaining agreements, and the 
level of plan benefits is established by the plan sponsor.
---------------------------------------------------------------------------
    \14\Sec. 414(f) and ERISA section 2(37).
---------------------------------------------------------------------------
    Like other private defined benefit plans,\15\ multiemployer 
defined benefit plans are subject to minimum funding 
requirements under the Code and ERISA.\16\ An excise tax may be 
imposed on the employers maintaining the plan if the funding 
requirements are not met.\17\ However, the excise tax does not 
apply for a taxable year with respect to a multiemployer plan 
if, for the plan years ending with or within the taxable year, 
the plan is in critical status under Code section 432.\18\
---------------------------------------------------------------------------
    \15\Sec. 414(j).
    \16\Secs. 412 and 431, and ERISA secs. 302 and 304. Additional 
rules apply to multiemployer plans that are insolvent under section 
418E and ERISA section 4245. Certain changes were made to the funding 
requirements for multiemployer plans by the Pension Protection Act of 
2006 (``PPA''), Pub. L. No. 109-280 and by the Multiemployer Pension 
Reform Act of 2014 (``MPRA''), Pub. L. No. 113-235, Division O.
    \17\Sec. 4971.
    \18\Sec. 4971(g)(1).
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General funding requirements for multiemployer plans

    Employer contributions to a defined benefit plan are 
generally subject to minimum funding requirements, the details 
of which depend on whether the plan is a single-employer plan 
or a multiemployer plan. Unless a funding waiver is obtained, 
an employer may be subject to a two-tier excise tax if the 
funding requirements are not met.
    In general, the annual deduction limit on employer 
contributions to a multiemployer defined benefit plan for a 
year is the excess of (1) 140 percent of the plan's current 
liability (the present value of all benefits earned under the 
plan), over (2) the value of plan assets. However, the 
deduction limit is never less than the amount of contributions 
required under the funding rules. If contributions exceed the 
amount deductible, the employers that contribute to the 
multiemployer plan are generally subject to an excise tax.
    General funding requirements apply to all multiemployer 
plans. Additional funding requirements apply to plans in 
endangered\19\ or critical status. An employer that withdraws 
from a multiemployer plan is generally liable to the plan for a 
portion of the plan's unfunded vested benefits, referred to as 
withdrawal liability. Various provisions limit the amount of an 
employer's withdrawal liability.
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    \19\A multiemployer plan is generally in endangered status if the 
plan is not in critical status and, as of the beginning of the plan 
year, (1) the plan's funded percentage for the plan year is less than 
80 percent, or (2) the plan has an accumulated funding deficiency for 
the plan year or is projected to have an accumulated funding deficiency 
in any of the six succeeding plan years (taking into account 
amortization extensions). A plan's funded percentage is the percentage 
determined by dividing the value of plan assets by the accrued 
liability of the plan. A plan that meets the requirements of both (1) 
and (2) is treated as in seriously endangered status.
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    Under the general funding requirements, a multiemployer 
defined benefit plan maintains a funding standard account, to 
which charges (such as for benefit accruals and negative plan 
experience) and credits (such as for positive plan experience 
and contributions) are made. The minimum required contribution 
for a plan year is the amount, if any, needed to balance 
accumulated credits and accumulated charges to the funding 
standard account. If required contributions are not made, so 
the funding standard account has a negative balance, an 
accumulated funding deficiency results.
    A multiemployer plan is required to use an acceptable 
actuarial cost method (referred to as the plan's funding 
method) to determine the elements included in its funding 
standard account for a year, including normal cost and 
supplemental cost. Normal cost generally represents the cost of 
future benefits allocated to the year under the plan's funding 
method. The supplemental cost for a plan year is the cost of 
future benefits that would not be met by future normal costs, 
future employee contributions, or plan assets. Supplemental 
costs may be attributable to past service liability or to worse 
than expected plan experience. Supplemental costs are amortized 
(that is, recognized for funding purposes) over a specified 
number of years (generally 15 years) by annual charges to the 
funding standard account over that period. Factors that result 
in a supplemental loss can alternatively result in a gain that 
is recognized by annual credits to the funding standard account 
over a 15-year amortization period (in addition to a credit for 
contributions made for the plan year).
    Actuarial assumptions used under the multiemployer plan 
funding rules must be reasonable. The interest rate (which 
represents the expected return on plan assets over time) and 
mortality assumptions used in funding computations are subject 
to these general standards; the funding rules do not specify 
the interest rate or mortality tables that must be used. For 
funding purposes, the actuarial value of plan assets may be 
used, rather than fair market value, subject to certain 
conditions.

Additional requirements relating to plans in endangered or critical 
        status

            In general
    Additional funding-related requirements apply to a 
multiemployer defined benefit pension plan that is in 
endangered or critical status.\20\ In connection with the 
endangered and critical rules, not later than the 90th day of 
each plan year, the actuary for any multiemployer plan must 
certify to the Secretary and to the plan sponsor whether or not 
the plan is in endangered or critical status for the plan year. 
If a plan is certified as being in endangered or critical 
status, notice of endangered or critical status must be 
provided within 30 days after the date of certification to plan 
participants and beneficiaries, the bargaining parties, the 
PBGC and the Secretary of Labor. Additional notice requirements 
apply in the case of a plan certified as being in critical 
status.
---------------------------------------------------------------------------
    \20\Endangered status and critical status are defined in section 
432(b)(1) and (2) and ERISA section 305(b)(1) and (2).
---------------------------------------------------------------------------
    Various requirements apply to a plan in endangered or 
critical status, including adoption of and compliance with (1) 
a funding improvement plan in the case of a multiemployer plan 
in endangered status, and (2) a rehabilitation plan in the case 
of a multiemployer plan in critical status. In addition, 
restrictions on certain plan amendments, benefit increases, and 
reductions in employer contributions apply during certain 
periods.
    A multiemployer plan is in critical status for a plan year 
if, as of the beginning of the plan year, it meets any of the 
following definitions:
           The funded percentage of the plan\21\ is 
        less than 65 percent and the sum of (1) the market 
        value of plan assets, plus (2) the present value of 
        reasonably anticipated employer and employee 
        contributions for the current plan year and each of the 
        six succeeding plan years (assuming that the terms of 
        the collective bargaining agreements continue in 
        effect) is less than the present value of all benefits 
        projected to be payable under the plan during the 
        current plan year and each of the six succeeding plan 
        years (plus administrative expenses),
---------------------------------------------------------------------------
    \21\A plan's multiemployer funded percentage is the percentage 
determined by dividing the value of plan assets by the plan's accrued 
liability (that is, generally, the present value of plan benefits).
---------------------------------------------------------------------------
           (1) The plan has an accumulated funding 
        deficiency for the current plan year, not taking into 
        account any amortization period extensions, or (2) the 
        plan is projected to have an accumulated funding 
        deficiency for any of the three succeeding plan years 
        (four succeeding plan years if the funded percentage of 
        the plan is 65 percent or less), not taking into 
        account any amortization period extensions,
           (1) The plan's normal cost for the current 
        plan year, plus interest for the current plan year on 
        the amount of unfunded benefit liabilities under the 
        plan as of the last day of the preceding year, exceeds 
        the present value of the reasonably anticipated 
        employer contributions for the current plan year, (2) 
        the present value of vested (that is, nonforfeitable) 
        benefits of inactive participants is greater than the 
        present value of vested benefits of active 
        participants, and (3) the plan has an accumulated 
        funding deficiency for the current plan year, or is 
        projected to have an accumulated funding deficiency for 
        any of the four succeeding plan years (not taking into 
        account amortization period extensions), or
           The sum of (1) the market value of plan 
        assets, plus (2) the present value of the reasonably 
        anticipated employer contributions for the current plan 
        year and each of the four succeeding plan years 
        (assuming that the terms of the collective bargaining 
        agreements continue in effect) is less than the present 
        value of all benefits projected to be payable under the 
        plan during the current plan year and each of the four 
        succeeding plan years (plus administrative expenses).
    The first plan year for which the plan is in critical 
status is referred to as the ``initial critical year,'' which 
governs the timing of certain requirements and periods.
    In making the determinations and projections applicable in 
determining and certifying endangered or critical status (or 
neither), the plan actuary must follow certain statutory 
standards. The actuary's projections generally must be based on 
reasonable actuarial estimates, assumptions, and methods that 
offer the actuary's best estimate of anticipated experience 
under the plan.\22\ In addition, the plan actuary must make 
projections for the current and succeeding plan years of the 
current value of the assets of the plan and the present value 
of all liabilities to participants and beneficiaries under the 
plan for the current plan year as of the beginning of the year. 
The projected present value of liabilities as of the beginning 
of the year must be based on the most recent actuarial 
statement required with respect to the most recently filed 
annual report or the actuarial valuation for the preceding plan 
year. Any projection of activity in the industry or industries 
covered by the plan, including future covered employment and 
contribution levels, must be based on information provided by 
the plan sponsor, which shall act reasonably and in good faith.
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    \22\Under section 432(j)(8) and ERISA section 305(j)(8), for 
purposes of the endangered and critical rules, various actuarial 
computations are based upon the unit credit funding method, regardless 
of whether it is the funding method used in applying the general 
funding requirements to the plan.
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    In the case of a multiemployer plan in critical status, 
additional required contributions (referred to as employer 
surcharges) apply until the adoption of a collective bargaining 
agreement that is consistent with the rehabilitation plan. In 
addition, employers are relieved of liability for minimum 
required contributions under the otherwise applicable funding 
rules (and the related excise tax), provided that a 
rehabilitation plan is adopted and followed.\23\ Moreover, 
subject to notice requirements, some benefits that would 
otherwise be protected from elimination or reduction may be 
eliminated or reduced in accordance with the rehabilitation 
plan.\24\
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    \23\Sec. 4971(g)(1)(A).
    \24\The rules for multiemployer plans in critical status include 
the elimination or reduction of ``adjustable benefits,'' which include 
some benefits that would otherwise be protected from elimination or 
reduction under the anti-cutback rules under section 411(d)(6) and 
ERISA section 204(g).
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    In the case of a failure to meet the requirements 
applicable to a multiemployer plan in endangered or critical 
status, the plan actuary, plan sponsor, or employers required 
to contribute to the plan may be subject to an excise tax under 
the Code or a civil penalty under ERISA.\25\
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    \25\Sec. 4971(g) and ERISA sec. 502(c)(8). In addition, certain 
failures are treated as a failure to file an annual report with respect 
to the multiemployer plan, subject to a civil penalty under ERISA.
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Anti-cutback exceptions for multiemployer plans

    Under the anti-cutback rules, generally applicable to 
defined benefit plans, a plan amendment generally may not 
reduce accrued benefits or reduce or eliminate an optional form 
of benefit, early retirement benefit, or retirement-type 
subsidy with respect to accrued benefits. Amendments are 
generally permitted only to reduce future rates of accrual, 
eliminate optional forms of benefits, or eliminate or reduce 
early retirement benefits or retirement-type subsidies only 
with respect to future accruals; and, in those cases, notice 
must be provided.
    In the case of a multiemployer defined benefit plan that is 
in critical status\26\ or critical and declining status,\27\ or 
is insolvent,\28\ subject to notice and other procedural 
requirements, certain plan benefits that would otherwise be 
protected under the anti-cutback rules are required or 
permitted to be reduced or eliminated.
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    \26\Sec. 432(b)(2) and sec. 305(b)(2) of ERISA.
    \27\Sec. 432(b)(6) and sec. 305(b)(6) of ERISA.
    \28\Sec. 418E of ERISA and sec. 4245 of ERISA.
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    In the case of a multiemployer plan in critical status, 
payments in excess of a single life annuity (plus any social 
security supplement, if applicable) may not be made to a 
participant or beneficiary who begins receiving benefits after 
notice that the plan is in critical status is provided and 
payments may not be made for the purchase of an irrevocable 
commitment from an insurer to pay benefits. In addition, the 
plan sponsor may reduce certain benefits (``adjustable 
benefits'') that the plan sponsor deems appropriate, but not 
for a participant or beneficiary who began to receive benefits 
before receiving notice that the plan is in critical status. 
Adjustable benefits generally include disability benefits not 
in pay status, early retirement benefits or retirement-type 
subsidies, and most benefit payment options, but not the amount 
of an accrued benefit payable at normal retirement age.
    In general, a multiemployer plan is insolvent when its 
available resources in a plan year are not sufficient to pay 
the plan benefits for that plan year. In that case, benefits 
must be reduced to the level that can be covered by the plan's 
assets, but not below the level of benefits that are eligible 
for guarantee under the PBGC's multiemployer plan program. If 
plan assets are insufficient to pay benefits at the guarantee 
level, the PBGC provides financial assistance to the plan in 
the form of loans.
            Suspension of benefits in multiemployer plans that are in 
                    critical and declining status
    A multiemployer plan is in critical and declining 
status\29\ if the plan (1) is in critical status and (2) is 
projected to become insolvent\30\ during the current plan year 
or any of the 14 succeeding plan years (19 succeeding plan 
years if either the ratio of inactive plan participants to 
active plan participants is more than two to one or the plan's 
funded percentage is less than 80 percent). In that case, 
subject to certain conditions, limitations, and procedural 
requirements, including the appointment of a retiree 
representative in some cases and approval by the Secretary of 
Treasury, previously earned benefits may be reduced (referred 
to as benefit suspensions), including benefits of some 
participants and beneficiaries in pay status.
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    \29\Sec. 432(b)(6) and sec. 305(b)(6) of ERISA.
    \30\As defined in section 418E.
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    Benefit suspensions are permitted only if the plan actuary 
certifies that, taking the benefit suspensions into account, 
the plan is projected to avoid insolvency, and the plan sponsor 
determines that, despite all reasonable measures to avoid 
insolvency, the plan is projected to become insolvent unless 
benefits are suspended.
    The plan sponsor generally determines the amount of the 
benefit suspensions and how the suspensions apply to plan 
participants and beneficiaries. However, benefits cannot be 
reduced below 110 percent of the monthly PBGC guarantee level; 
disability benefits cannot be suspended; benefit reductions for 
a participant or beneficiary between the ages of 75 and 80 are 
limited; benefit reductions are not permitted for a participant 
or beneficiary age 80 or over; and benefit suspensions in the 
aggregate must be at the level reasonably estimated to achieve, 
but not materially exceed, the level that is necessary to avoid 
insolvency.

Partition

    On application by the plan sponsor of an eligible 
multiemployer plan for a partition of the plan, the PBGC may 
order a partition of the plan. Not later than 30 days after 
submitting an application to the PBGC for partition of a plan, 
the plan sponsor must notify the participants and beneficiaries 
of the application, in the form and manner prescribed by PBGC 
regulations.
    For purposes of the provision, a multiemployer plan is an 
eligible multiemployer plan if--
           the plan is in critical and declining status 
        (as described above),
           the PBGC determines, after consultation with 
        the Participant and Plan Sponsor Advocate,\31\ that the 
        plan sponsor has taken (or is taking concurrently with 
        an application for partition) all reasonable measures 
        to avoid insolvency, including maximum benefit 
        suspensions permitted in the case of a critical and 
        declining plan, if applicable,
---------------------------------------------------------------------------
    \31\Established under section 4004 of ERISA.
---------------------------------------------------------------------------
           the PBGC reasonably expects that a partition 
        of the plan will reduce the PBGC's expected long-term 
        loss with respect to the plan and is necessary for the 
        plan to remain solvent,
           the PBGC certifies to Congress that the 
        PBGC's 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) will not be impaired by the partition, and
           the cost to the PBGC arising from the 
        proposed partition is paid exclusively from the fund 
        for basic benefits guaranteed for multiemployer 
        plans.\32\
---------------------------------------------------------------------------
    \32\Thus, other Federal funds, including funds from the PBGC 
single-employer plan program, may not be used for this purpose.
---------------------------------------------------------------------------
    The PBGC must make a determination regarding a partition 
application not later than 270 days after the application is 
filed (or, if later, the date the application is completed) in 
accordance with PBGC regulations. Not later than 14 days after 
a partition order, the PBGC must provide notice thereof to the 
House Committees on Education and the Workforce and on Ways and 
Means and the Senate Committees on Finance and on Health, 
Education, Labor, and Pensions, as well as to any affected 
participants or beneficiaries.
    The plan sponsor and the plan administrator of the eligible 
multiemployer plan (the ``original'' plan) before the partition 
are the plan sponsor and plan administrator of the plan created 
by the partition order (the ``new'' plan). For purposes of 
determining benefits eligible for guarantee by the PBGC, the 
new plan is a successor plan with respect to the original plan.
    The PBGC's partition order is to provide for a transfer to 
the new plan the minimum amount of the original plan's 
liabilities necessary for the original plan to remain solvent. 
The provision does not provide for the transfer to the new plan 
of any assets of the original plan.
    It is expected that the liabilities transferred to the new 
plan will be liabilities attributable to benefits of specific 
participants and beneficiaries (or a specific group or groups 
of participants and beneficiaries) as requested by the plan 
sponsor of the original plan and approved by the PBGC, up to 
the PBGC guarantee level applicable to each participant or 
beneficiary. Thus, benefits for such participants and 
beneficiaries up to the guarantee level will be paid by the new 
plan. For each month after the effective date of the partition 
that such a participant or beneficiary is in pay status, the 
original plan will pay a monthly benefit to the participant or 
beneficiary in the amount by which (1) the monthly benefit that 
would be paid to the participant or beneficiary under the terms 
of the original plan if the partition had not occurred (taking 
into account any benefit suspensions and any plan amendments 
after the effective date of the partition) exceeds (2) the 
amount of the participant's or beneficiary's benefit up to the 
PBGC guarantee level.
    During the 10-year period following the effective date of 
the partition, the original plan must pay the PBGC premiums due 
for each year with respect to participants whose benefits were 
transferred to the new plan. The original plan must pay an 
additional amount to the PBGC if it provides a benefit 
improvement (as defined under the rules for plans in critical 
and declining status, described above) that takes effect after 
the effective date of the partition. Specifically, for each 
year during the 10-year period following the effective date of 
the partition, the original plan must pay the PBGC an annual 
amount equal to the lesser of (1) the total value of the 
increase in benefit payments for the year that is attributable 
to the benefit improvement, or (2) the total benefit payments 
from the new plan for the year. This payment must be made to 
the PBGC at the time of, and in addition to, any other PBGC 
premium due from the original plan.
    If an employer withdraws from the original plan within 10 
years after the date of the partition order, the employer's 
withdrawal liability will be determined by reference to both 
the original plan and the new plan. If the withdrawal occurs 
more than 10 years after the date of the partition order, 
withdrawal liability will be determined only by reference to 
the original plan and not with respect to the new plan.

Withdrawal liability

    An employer that withdraws from a multiemployer plan in a 
complete or partial withdrawal is generally liable to the plan 
in the amount determined to be the employer's withdrawal 
liability.\33\ In general, a ``complete withdrawal'' means the 
employer has permanently ceased operations under the plan or 
has permanently ceased to have an obligation to contribute. A 
``partial withdrawal'' generally occurs if, on the last day of 
a plan year, there is a 70-percent contribution decline for 
such plan year or there is a partial cessation of the 
employer's contribution obligation.
---------------------------------------------------------------------------
    \33\ERISA secs. 4201-4225.
---------------------------------------------------------------------------
    When an employer withdraws from a multiemployer plan, the 
plan sponsor is required to determine the amount of the 
employer's withdrawal liability, notify the employer of the 
amount of the withdrawal liability, and collect the amount of 
the withdrawal liability from the employer. In order to 
determine an employer's withdrawal liability, a portion of the 
plan's unfunded vested benefits is first allocated to the 
employer, generally in proportion to the employer's share of 
plan contributions for a previous period.\34\ The amount of 
unfunded vested benefits allocable to the employer is then 
subject to various reductions and adjustments. An employer's 
withdrawal liability is generally payable, with interest, in 
level annual installments. However, the amount of the annual 
installments is limited, based on the amount of the employer's 
previous contributions to the plan, and the period over which 
installments are paid is limited to 20 years. An employer's 
withdrawal liability is the amount determined after application 
of these limits. In addition, the plan sponsor and the employer 
may agree to settle an employer's withdrawal liability 
obligation for a different amount.
---------------------------------------------------------------------------
    \34\Under 29 C.F.R. sec. 4211.2, for this purpose, unfunded vested 
benefits is the amount by which the value of vested benefits under the 
plan exceeds the value of plan assets.
---------------------------------------------------------------------------
    If a multiemployer plan is in critical status, payments in 
excess of a single life annuity (plus any social security 
supplement, if applicable) may not be made and reductions in 
adjustable benefits are permitted. If a plan is in critical and 
declining status, benefit suspensions are permitted, including 
with respect to participants and beneficiaries in pay status. 
The elimination of any prohibited forms of distribution and 
reductions in adjustable benefits are disregarded in 
determining a plan's unfunded vested benefits for purposes of 
determining an employer's withdrawal liability. In addition, 
suspensions of benefits made under a multiemployer plan in 
critical and declining status are disregarded in determining 
the plan's unfunded vested benefits for purposes of determining 
an employer's withdrawal liability unless the withdrawal occurs 
more than 10 years after the effective date of the benefit 
suspension.

Multiemployer Plan Program of the Pension Benefit Guaranty Corporation

    The PBGC, a corporation within DOL, provides an insurance 
program for benefits under most defined benefit plans 
maintained by private employers. The PBGC is administered by a 
director. Its board of directors consists of the Secretary of 
the Treasury, the Secretary of Labor, and the Secretary of 
Commerce.
    The PBGC is financed through the payment of premiums by 
covered defined benefit plans, assets from terminated single-
employer defined benefit plans trusteed by the PBGC, and 
investment income on PBGC assets. The PBGC insures pension 
benefits under separate programs for single-employer and 
multiemployer defined benefit plans.
    In the case of a multiemployer plan, flat-rate premiums 
apply at a rate of $29 per participant for 2019. The PBGC 
provides financial assistance to insolvent multiemployer plans 
in the amount needed to pay benefits at the guarantee limit, 
which is the sum of 100 percent of the first $11 of monthly 
benefits plus 75 percent of the next $33 of monthly benefits 
multiplied by the participant's years of service.
    Termination of a multiemployer defined benefit pension plan 
can occur as a result of (1) the adoption of a plan amendment 
providing that participants receive no credit under the plan 
for any purpose for service with any employer after a date 
specified in the amendment (referred to as ``freezing 
accruals''), (2) the adoption of a plan amendment causing the 
plan to become a defined contribution plan, or (3) the 
withdrawal of every employer from the plan or the cessation of 
the obligation of all employers to contribute to the plan 
(referred to as ``mass withdrawal'').\35\
---------------------------------------------------------------------------
    \35\ERISA sec. 4041A. Unlike the termination of a single-employer 
plan (and except in the case of multiemployer plan terminations 
occurring before 1981), termination of a multiemployer plan does not of 
itself result in the end of the operation of the plan or in the PBGC's 
taking over the plan. Instead, the plan sponsor continues to administer 
the plan.
---------------------------------------------------------------------------
    If a terminated multiemployer plan becomes insolvent and 
plan assets are not sufficient to pay benefits at the level 
guaranteed by the PBGC, the PBGC will provide financial 
assistance as needed to pay benefits at the guarantee level, as 
described above.\36\ If a multiemployer plan that has not 
terminated becomes insolvent, similar rules apply, including 
the provision by the PBGC of financial assistance in an amount 
needed to provide benefits at the guarantee level.
---------------------------------------------------------------------------
    \36\ERISA secs. 4261 and 4281.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    Approximately 12 percent of multiemployer plans covering 
over one million workers, retirees, and beneficiaries are 
projected to become insolvent within the next 20 years, and 
many of these plans are predicted to run out of funds in the 
next 10 years. At the same time, the PBGC multiemployer plan 
program (which provides financial assistance to insolvent 
multiemployer plans so that these plans can pay benefits at 
PBGC guaranteed levels to participants and beneficiaries) is 
anticipated to become insolvent in 2025 at which point the PBGC 
will only be able to pay a fraction\37\ of the current 
guarantee to these plans.
---------------------------------------------------------------------------
    \37\The Honorable W. Thomas Reeder (former director of the PBGC), 
testifying before the Joint Select Committee on Solvency of 
Multiemployer Pension Plans on May 17, 2018, indicated that 
participants in failed multiemployer plans would receive ``an eighth or 
less on average--of the current guarantee level, no matter when their 
plan became insolvent.''
---------------------------------------------------------------------------
    Congress believes that implementing a federal loan program 
in combination with PBGC financial assistance will (1) permit 
these plans to restore their solvency while also requiring them 
to repay these loans (avoiding a taxpayer bailout of these 
plans); (2) protect pension benefits of the participants and 
beneficiaries in these plans; and (3) lessen the financial 
impact of these plans upon the PBGC's multiemployer plan 
program.

                        EXPLANATION OF PROVISION

Establishment of Pension Rehabilitation Administration to provide loans 
        to certain multiemployer plans

    Under the provision, the Pension Rehabilitation 
Administration (``PRA'') is to be established as an agency 
within the Department of the Treasury. The PRA is authorized to 
make loans to certain multiemployer defined benefit plans.
            Multiemployer plan eligibility for loans from the PRA
    A multiemployer defined benefit plan which is eligible to 
receive such a loan is a plan:
           In critical and declining status as of the 
        date of enactment or for which a suspension of benefits 
        has been approved as of such date;\38\
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    \38\Sec. 432(e)(9) and sec. 305(e)(9) of ERISA.
---------------------------------------------------------------------------
           In critical status as of the date of 
        enactment, has a modified funded percentage of less 
        than 40 percent,\39\ and has a ratio of active to 
        inactive participants which is less than two to five; 
        or
---------------------------------------------------------------------------
    \39\As noted above, for determining critical status for purposes of 
section 432 and section 305 of ERISA, assets and liabilities are 
generally both determined at their actuarial value for purposes of 
calculating the funded percentage, but for purposes of determining 
which plans are eligible for a loan from the PRA, the modified funded 
percentage means the percentage equal to a fraction the numerator of 
which is the current value of plan assets as defined in ERISA section 
3(26) (fair market value if available and otherwise the fair value as 
determined in good faith by a trustee or named fiduciary pursuant to 
the terms of the plan and in accordance with regulations of the 
Secretary, assuming an orderly liquidation at the time of such 
determination) and the denominator of which is current liabilities (as 
defined in section 431(c)(6)(D) and section 304(c)(6)(D) of ERISA).
---------------------------------------------------------------------------
           Insolvent, if it became insolvent after 
        December 16, 2014, and has not been terminated;\40\
---------------------------------------------------------------------------
    \40\Pursuant to section 4041A of ERISA.
---------------------------------------------------------------------------
    The PRA also establishes appropriate terms for such loans; 
certain required terms of the loan are discussed further below.
            Establishment of the loan program
    Under the provision, the loan program is to be established 
not later than September 30, 2019, with guidance regarding the 
program to be promulgated by the Director of the PRA (who is 
appointed by the President for a five-year term of office) 
(``Director'') in consultation with the Director of the PBGC, 
the Secretary and the Secretary of Labor not later than 
December 31, 2019.
    Before the loan program has been established, or before 
guidance has been promulgated, a plan may apply for a loan, and 
the PRA will approve the application and make the loan before 
establishment of the program if necessary to avoid any 
suspension of participants' accrued benefits.
    The Director\41\ consults with the Secretary, the Secretary 
of Labor, and the Director of the Pension Benefit Guaranty 
Corporation (``PBGC'') before making any such loan to a 
multiemployer plan, and shares the application and plan 
information with such individuals.
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    \41\The Director may serve after the expiration of a term until a 
successor is appointed. The Director may appoint Deputy Directors, 
officers and employees (including attorneys) and may contract for 
financial and administrative services (including those related to 
budget and accounting, financial reporting, personnel, and procurement, 
but only to the extent that appropriations are available for that 
purpose for any fiscal year) with the General Services Administration 
(or such other Federal agency that the Director determines to be 
appropriate) paid in advance, or by reimbursement from PRA funds in 
amounts agreed to by the Director and the head of the Federal agency 
providing the services. The Secretary may transfer (for any fiscal 
year) from unobligated amounts appropriated to the Department of 
Treasury to the PRA as may be reasonably necessary to pay for its 
administrative and operating expenses.
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            Pension Rehabilitation Trust Fund
    Under the provision, the Pension Rehabilitation Trust Fund 
(the ``Fund'') is established in the Treasury Department to 
fund the loan program. The Fund consists of the following 
amounts as may be appropriated or credited to the Fund as 
follows:\42\
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    \42\Sec. 9512 and sec. 9602(b).
---------------------------------------------------------------------------
           Amounts transferred from the general fund of 
        the Treasury by the Secretary to the Fund as are 
        necessary to fund the loan program, including from 
        proceeds of the Secretary's issuance of Treasury 
        obligations (under 31 U.S.C. chapter 31);
           Any amounts received from a plan as payment 
        of interest (including points and other similar 
        amounts) or principal on a loan (which are deposited 
        into the Fund by the Director); and
           Any unobligated amounts appropriated to the 
        Department of Treasury transferred by the Secretary to 
        the PRA as may be reasonably necessary to pay for 
        administrative and operating expenses as described 
        above (which are deposited into the Fund by the 
        Director).
    Amounts credited to, or deposited in the Fund, remain 
available until expended for:
           Making loans to multiemployer defined 
        benefit plans;
           Payment of principal and interest on 
        Treasury obligations issued by the Secretary; and
           PRA administrative and operating expenses.
            Loan amount and use
    A plan sponsor must apply to the PRA in order to receive a 
loan under the provision. Any sponsor of a plan for which a 
suspension of benefits has been approved\43\ before the date of 
enactment must apply for such a loan.\44\
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    \43\Under section 432(e)(9) and section 305(e)(9) of ERISA or under 
section 418E.
    \44\But such a plan may use the simplified application.
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    The amount of any loan will generally be, as demonstrated 
by the plan sponsor on the application, the amount needed to 
purchase annuity contracts or to implement a portfolio (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. The 
loan amount may differ if the plan is also applying for 
financial assistance from the PBGC (see below).
            Coordination of loan amount where suspension of benefits 
                    has been approved
    In the case of a plan with respect to which a suspension of 
benefits has been approved, the suspension of benefits shall 
not be taken into account in determining the amount of the loan 
under the provision, but rather, 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 suspension.
            Coordination of loan amount with PBGC financial assistance
    If a plan that is applying for a loan is also applying for 
financial assistance with the PBGC,\45\ the plan sponsor must 
submit the loan application and the application for financial 
assistance jointly to the PRA and to the PBGC with the 
information necessary to determine the eligibility for and 
amount of the loan and the financial assistance.
---------------------------------------------------------------------------
    \45\Under section 4261(d) of ERISA.
---------------------------------------------------------------------------
    If such financial assistance is granted, then the amount of 
the loan may not exceed an amount equal to the excess of either 
(1) or (2) below (depending on which is applicable) over the 
amount of any PBGC financial assistance:
    1. the amount required to purchase annuity contracts or to 
implement a portfolio (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, or
    2. the amount required for plans for which a suspension of 
benefits has been approved which is 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 have otherwise have 
been payable during the period of the suspension.
            Use of loan amounts
    Under the provision, the restrictions that apply to 
purchasing annuity contracts from an insurer to a multiemployer 
plan effective on the date of the notice of certification of a 
multiemployer plan's critical status\46\ do not apply to a loan 
from the PRA. Rather, under the provision, a loan from the PRA 
may only be used to purchase annuity contracts or to implement 
a portfolio (or a combination of the two) to provide benefits 
of participants and beneficiaries in pay status, and terminated 
vested benefits, at the time the loan is made, that satisfy the 
following requirements:
---------------------------------------------------------------------------
    \46\Sec. 432(f)(2)(A)(ii) and section 305(f)(2)(A)(ii) of ERISA.
---------------------------------------------------------------------------
    The annuity contracts purchased must 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 must meet all applicable fiduciary 
standards under ERISA.\47\
---------------------------------------------------------------------------
    \47\Under Title I of ERISA, including section 404, a fiduciary must 
discharge his or her duties with respect to a plan solely in the 
interest of the participants and beneficiaries and for the exclusive 
purpose of providing benefits to such participants and their 
beneficiaries, and defraying reasonable expenses of administering the 
plan. Each fiduciary must undertake these responsibilities with the 
care, skill, prudence and diligence under the circumstances then 
prevailing that a prudent man acting in a like capacity and familiar 
with such matter would use in the conduct of an enterprise of a like 
character and with like aims. Fiduciaries must also avoid prohibited 
transactions, such as self-dealing. The Department of Labor has also 
established guidelines for the selection of an annuity provider. See 29 
C.F.R. 2550.404a-4.
---------------------------------------------------------------------------
    The portfolio described must be either a:
           Cash matching 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
           Any other portfolio prescribed by the 
        Secretary in regulations which has a similar risk 
        profile to the portfolios described above and is 
        equally protective of the interests of participants and 
        beneficiaries.
    Once implemented, the portfolio is maintained until all 
liabilities to participants and beneficiaries in pay status, 
and terminated vested participants, at the time of the loan, 
are satisfied. Any investment manager of a portfolio must 
acknowledge in writing that such person is a fiduciary under 
ERISA with respect to the plan. Participants and beneficiaries 
covered by a portfolio continue to be treated as participants 
and beneficiaries of the plan, including for purposes of the 
PBGC plan termination insurance program.\48\ Such portfolios 
are subject to oversight by the PRA, including a mandatory 
triennial review of the adequacy of the portfolio to provide 
the benefits described 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. If the 
oversight determines an inadequacy in the portfolio, the plan 
sponsor must take remedial action to ensure that the inadequacy 
is cured within two years of such determination.
---------------------------------------------------------------------------
    \48\Under Title IV of ERISA. In other words, such participants and 
beneficiaries continue to maintain their rights under that Title 
including that these plan benefits will continue to be guaranteed under 
section 4022A of ERISA.
---------------------------------------------------------------------------
    Such annuity contracts purchased and portfolios implemented 
must be used solely to provide benefits to these participants 
and beneficiaries who are either in pay status or are 
terminated vested participants until all such benefits have 
been paid and these investments shall be accounted for 
separately from any other assets of the plan. In addition, the 
PBGC Participant and Plan Sponsor Advocate\49\ shall act as the 
ombudsperson for participants and beneficiaries on behalf of 
whom annuity contracts are purchased or who are covered by a 
portfolio.
---------------------------------------------------------------------------
    \49\Established under section 4004 of ERISA.
---------------------------------------------------------------------------

                            LOAN APPLICATION

    Under the provision, the Director (in consultation with the 
Director of PBGC, the Secretary of the Treasury, and the 
Secretary of Labor) is authorized to issue rules regarding the 
form, content, and process of applications for loans from the 
PRA, the 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 portfolio 
investments. The Director must provide for a simplified loan 
application which may be used by (1) an insolvent plan which 
has not been terminated and which is already receiving 
financial assistance from the PBGC at the time of application 
for the loan and (2) a plan with respect to which a suspension 
of benefits has been approved before the date of the enactment.
    As part of an application for a loan, the plan sponsor will 
need to:
           Demonstrate that the loan (in combination 
        with any financial assistance to be provided by the 
        PBGC as described below) will (1) enable the plan to 
        avoid insolvency for at least the 30-year period of the 
        loan or, in the case of a plan which is already 
        insolvent, to emerge from insolvency within and avoid 
        insolvency for the remainder of such 30-year period, 
        and (2) provide that 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;
           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;
           Stipulate whether the plan is also applying 
        for financial assistance from the PBGC\50\ in 
        coordination 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;
---------------------------------------------------------------------------
    \50\Under section 4261(d) of ERISA.
---------------------------------------------------------------------------
           State how the loan proceeds will be invested 
        (whether to purchase annuities or to provide for the 
        portfolio described below), the person from whom any 
        annuity contracts will be purchased and the investment 
        manager for any such portfolio implemented; and
           Include such other information and 
        certifications as the PRA Director requires.
            Evaluation of the loan application
    In evaluating the plan sponsor's application, the Director 
will accept the determinations and demonstrations in the 
application unless the Director (in consultation with the 
Director of the PBGC, the Secretary of the Treasury, and the 
Secretary of Labor), concludes that any such determinations or 
demonstrations in the application (or any underlying 
assumptions) are unreasonable or are inconsistent with any 
rules issued by the PRA Director.
    The Director will approve or deny any application within 90 
days after its submission. An application will be deemed to be 
approved unless, within such 90-day period, the Director 
notifies the plan sponsor of the denial of the application and 
the reasons for the denial. Any approval or denial of an 
application by the Director will be treated as a final agency 
action.\51\
---------------------------------------------------------------------------
    \51\For purposes of section 704 of title 5 of the United States 
Code.
---------------------------------------------------------------------------
    Once the application has been approved, the PRA will 
promptly make the loan to the plan.

Terms of the loan

    Under the provision, the terms of the loan shall provide 
that:
           The plan shall make payments of interest 
        only 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 special election for early repayment 
        described above);
           The final payment of interest and principal 
        will be due in the 30th year after the date of the loan 
        (except as provided by the special election for early 
        repayment described above);
           As a condition of the loan, the plan sponsor 
        stipulates that:
                   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 of the loan;
                   However, in the case of a plan for 
                which a suspension of benefits has been 
                approved before the loan was made, the plan 
                will reinstate the suspended benefits (or will 
                not carry out any suspension which has been 
                approved, but not yet implemented;
                   The plan sponsor will comply with 
                the reporting requirements set forth below;
                   The plan will continue to pay PBGC 
                premiums;\52\ and
---------------------------------------------------------------------------
    \52\Sec. 4007 of ERISA.
---------------------------------------------------------------------------
                   The plan and plan administrator will 
                meet such other requirements as the Director 
                provides in the loan terms.
           The terms of the loan will not make 
        reference as to whether the plan is receiving financial 
        assistance from the PBGC\53\ or to any adjustment in 
        the amount of the loan due to such financial 
        assistance;
---------------------------------------------------------------------------
    \53\Sec. 4261(d) of ERISA.
---------------------------------------------------------------------------
           The interest rate on the loan, (as 
        determined by the PRA) will be as low as is feasible 
        and will:
                   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
                   Will not exceed the greater of (1) a 
                rate 0.2 percent higher than such rate of 
                interest on such date, or (2) the rate 
                necessary to collect revenues sufficient to 
                administer the program.
            Incentive for early repayment
    At the time of the application, under the provision, the 
plan sponsor may elect to repay the loan principal, along with 
remaining interest, at least as rapidly as equal installments 
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 is reduced by 0.5 percent. For 
example, if a loan of $10,000,000 has been approved and the 
plan sponsor makes this election, then beginning in the 21st 
year after the date of the loan, the plan sponsor must pay at 
least $1,000,000 (along with interest) in each year of the 10-
year period. The plan sponsor could pay off the entire 
remaining amount of the loan in the 25th year as long as the 
plan sponsor had been making installments of at least 
$1,000,000 (along with interest) in years 21 through 24.

Repayment of loan and loan default

    The PRA shall make every effort to collect repayment of the 
loans under the provision.\54\ However, if a plan is unable to 
make any payment on a loan when due, the PRA shall negotiate 
revised terms for repayment (including installment payments 
over a reasonable period or forgiveness of a portion of the 
loan principal) with the plan sponsor, but only to the extent 
necessary to avoid insolvency in the subsequent 18 months.
---------------------------------------------------------------------------
    \54\In accordance with 31 U.S.C. section 3711, Collection and 
compromise.
---------------------------------------------------------------------------

Coordination with other rules

            Coordination with withdrawal liability rules
    If any employer participating in a plan at the time the 
plan receives a loan withdraws from the plan before the end of 
the 30-year period beginning on the date of the loan, under the 
provision, the withdrawal liability of such employer shall be 
determined by (1) treating the plan as if it were terminating 
by the withdrawal of every employer from the plan (i.e., mass 
withdrawal)\55\ and (2) by determining the value of 
nonforfeitable benefits under the plan at the time of the 
deemed termination by using the interest assumptions prescribed 
for the termination of a single-employer plan.\56\ In addition, 
annuity contracts purchased and portfolios implemented shall 
not be taken into account as plan assets\57\ in determining the 
withdrawal liability of any employer but the amount equal to 
the greater of (1) the benefits provided under such contracts 
or portfolios to participants and beneficiaries, or (2) the 
remaining payments due on the loan, shall be taken into account 
as unfunded vested benefits in determining such withdrawal 
liability.
---------------------------------------------------------------------------
    \55\The significance of this treatment is that the amount of 
withdrawal liability will not be limited to 20 annual payments and the 
total unfunded vested benefits of the plan shall be fully allocated 
among all the withdrawing employers, see section 4219(c)(1)(D) of 
ERISA.
    \56\Sec. 4044 of ERISA, as prescribed in the regulations under 
section 4281 of ERISA in the case of such a mass withdrawal, including 
section 4281.13.
    \57\For purposes of the Code, but for purposes of ERISA, the bill 
provides, ``annuity contracts purchased and portfolios implemented . . 
. shall not be taken into account in determining the withdrawal 
liability of any employer . . .''
---------------------------------------------------------------------------
            Coordination with funding rules
    In the case of a plan which receives a loan from the PRA, 
the following shall apply with respect to the funding rules 
under the provision:
           Annuity contracts purchased and portfolios 
        implemented, and the benefits provided to participants 
        and beneficiaries under such contracts or portfolios, 
        shall not be taken into account in determining minimum 
        required contributions;\58\
---------------------------------------------------------------------------
    \58\Under section 412 and section 302 of ERISA.
---------------------------------------------------------------------------
           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; and
           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.
            Coordination with taxation of unrelated business income
    For purposes of determining unrelated debt-financed income, 
``acquisition indebtedness'' does not include indebtedness with 
respect to a multiemployer plan under a loan made by the 
PRA.\59\
---------------------------------------------------------------------------
    \59\Sec. 514(c)(6).
---------------------------------------------------------------------------

Reporting requirements

    Under the provision, not later than the 90th day of the 
first plan year beginning after the date of the loan and each 
of the 29 succeeding plan years, the plan sponsor of a 
multiemployer defined benefit plan receiving a PRA loan must 
file a report with the Secretary (including the appropriate 
documentation and actuarial certifications from the plan 
actuary, as required by the Secretary) that contains:
     1. The funded percentage\60\ 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;
---------------------------------------------------------------------------
    \60\As defined in section 432(j)(2).
---------------------------------------------------------------------------
     2. The market value of the assets of the plan (determined 
with regard, and without regard, to annuity contracts purchased 
and portfolios implemented with proceeds of such loan) 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 nine 
succeeding plan years, and the assumptions relied upon in 
making such projections;
     6. Funding standard account projections for such plan year 
and the nine 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 reductions;
     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 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 from 
the PBGC\61\ to pay benefits during the preceding plan year, 
and the total amount of such financial assistance received for 
all preceding plan years;
---------------------------------------------------------------------------
    \61\Sec. 4261 of ERISA.
---------------------------------------------------------------------------
     15. The information contained on the most recent annual 
funding notice submitted by the plan;\62\
---------------------------------------------------------------------------
    \62\Sec. 101(f) of ERISA.
---------------------------------------------------------------------------
     16. The information contained on the most recent annual 
return and actuarial report; 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 that plan year, copies of collective 
bargaining agreements, and financial reports, and such other 
information as the Secretary, in consultation with the 
Director, may require.
    The report is to be submitted electronically. The Secretary 
shall share the information contained in the report with the 
Secretary of Labor and the Director of the PBGC.
    Each plan sponsor required to file such a report shall, 
before the expiration of the time prescribed for filing the 
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 contributing employer.
            Penalty for failure to file report
    If a plan sponsor fails to file a report required for plans 
receiving a loan from the PRA, a penalty of $100 will be 
imposed for each day during which the failure continues, unless 
it is shown that such failure is due to reasonable cause, but 
the penalty is not to exceed a total of $15,000 on any person 
for failure to file such report. Under the provision, the 
amount imposed is not to be paid from the assets of the plan.

Eligibility for financial assistance from PBGC

    Under the provision, a plan sponsor is eligible to apply to 
the PBGC for financial assistance for a multiemployer defined 
benefit plan if the plan sponsor is applying for a loan from 
the PRA and the plan is:
           In critical and declining status; or
           Insolvent, but has not been terminated and 
        is receiving PBGC financial assistance (other than 
        assistance being provided in combination with a PRA 
        loan).
    The plan sponsor must apply by jointly submitting such 
applications to the PRA for the loan and the PBGC for the 
financial assistance. The application for financial assistance 
shall demonstrate, based on projections by the plan actuary, 
that after the receipt of the anticipated loan amount, the plan 
will still become (or remain) insolvent within the 30-year 
period beginning on the date of the loan.
            Amount of financial assistance
    In the case of a plan that is in critical and declining 
status, the financial assistance provided shall be the amount 
(determined by the plan actuary and submitted on the 
application) equal to the sum of (1) the percentage of benefits 
of participants and beneficiaries of the plan in pay status at 
the time of the application, and (2) 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 PBGC in combination with the loan, 
would allow the plan to avoid the projected insolvency and be 
projected to have increasing assets over any five-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.\63\ The maximum 
guaranteed benefit amount is determined by disregarding any 
loan available from the PRA and shall be determined as if the 
plan were insolvent on the date of the application. 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. In the case of a plan which is 
insolvent, the financial assistance provided shall be the 
amount (determined by the plan actuary and submitted on the 
application) which, if such amount were paid by the PBGC in 
combination with the loan and any other assistance being 
provided to the plan by the PBGC at the time of the 
application, would enable the plan to emerge from insolvency.
---------------------------------------------------------------------------
    \63\Under sections 4022A and 4022B of ERISA.
---------------------------------------------------------------------------
    Requirements under ERISA relating to conditions and 
repayment terms of financial assistance, and to financial 
assistance provided before a final determination of the amount 
needed by the PBGC,\64\ apply to financial assistance under the 
provision except that the terms for repayment will not require 
the financial assistance to be repaid before the date on which 
the loan is repaid in full.
---------------------------------------------------------------------------
    \64\Sec. 4261(b) and (c) of ERISA.
---------------------------------------------------------------------------
    The PBGC may forego repayment of the financial assistance 
if necessary to avoid any suspension of the accrued benefits of 
participants.
    There is appropriated to the Director of the PBGC such sums 
as may be necessary for each fiscal year to provide the 
financial assistance including necessary administrative and 
operating expenses relating to such assistance.

                             EFFECTIVE DATE

    The provision generally applies to loans made to 
multiemployer plans after the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the House of 
Representatives, the following statement is made concerning the 
votes of the Committee on Ways and Means during the markup 
consideration of H.R. 397, the ``Rehabilitation for 
Multiemployer Pensions Act.''
    The vote on the amendment offered by Mr. Arrington to the 
amendment in the nature of a substitute to H.R. 397, which 
would require plans receiving loans and financial assistance to 
purchase financial guarantees to cover such amounts, was 
defeated by a roll call vote of 17 yeas to 24 nays. The vote 
was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........  .........  .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (IL)         X   .........  .........
Ms. Chu (CA).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Schweikert to the 
amendment in the nature of a substitute to H.R. 397, which 
would require the Department of Treasury to conduct independent 
analysis of a plan's loan application, was defeated by a roll 
call vote of 17 yeas to 25 nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
MS. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (IL)         X   .........  .........
Ms. Chu (CA).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Ferguson to the 
amendment in the nature of a substitute to H.R. 397, which 
would affect the terms of the loan and financial assistance, 
was defeated by a roll call vote of 17 yeas to 24 nays. The 
vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (IL)         X   .........  .........
Ms. Chu (CA).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........  .........  .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Rice to the 
amendment in the nature of a substitute to H.R. 397, which 
would require a plan that receives a loan to use certain 
methods and assumptions for measuring liabilities, was defeated 
by a roll call vote of 17 yeas to 24 nays. The vote was as 
follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (IL)         X   .........  .........
Ms. Chu (CA).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........  .........  .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Buchanan to the 
amendment in the nature of a substitute to H.R. 397, which 
would require a plan that receives a loan to remove all plan 
trustees and require the Secretary of Treasury to appoint new 
independent trustees for the plan, was defeated by a roll call 
vote of 17 yeas to 24 nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........  .........  .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on Mr. Thompson's motion to table Mr. Schweikert's 
appeal of the ruling of the chair was agreed to by a roll call 
vote of 24 yeas to 17 nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................         X   .........  .........  Mr. Brady......  .........         X   .........
Mr. Lewis....................         X   .........  .........  Mr. Nunes......  .........         X   .........
Mr. Doggett..................         X   .........  .........  Mr. Buchanan...  .........         X   .........
Mr. Thompson.................         X   .........  .........  Mr. Smith......  .........         X   .........
Mr. Larson...................         X   .........  .........  Mr. Marchant...  .........         X   .........
Mr. Blumenauer...............         X   .........  .........  Mr. Reed.......  .........         X   .........
Mr. Kind.....................         X   .........  .........  Mr. Kelly......  .........         X   .........
Mr. Pascrell.................         X   .........  .........  Mr. Holding....  .........         X   .........
Mr. Davis....................         X   .........  .........  Mr. Smith......  .........         X   .........
Ms. Sanchez..................         X   .........  .........  Mr. Rice.......  .........         X   .........
Mr. Higgins..................         X   .........  .........  Mr. Schweikert.  .........         X   .........
Ms. Sewell...................         X   .........  .........  Ms. Walorski...  .........         X   .........
Ms. DelBene..................         X   .........  .........  Mr. Lahood (Il)  .........         X   .........
Ms. Chu (Ca).................         X   .........  .........  Mr. Wenstrup...  .........         X   .........
Ms. Moore....................         X   .........  .........  Mr. Arrington..  .........         X   .........
Mr. Kildee...................         X   .........  .........  Mr. Ferguson...  .........         X   .........
Mr. Boyle....................         X   .........  .........  Mr. Estes......  .........         X   .........
Mr. Beyer....................         X   .........  .........
Mr. Evans....................         X   .........  .........
Mr. Schneider................         X   .........  .........
Mr. Suozzi...................         X   .........  .........
Mr. Panetta..................         X   .........  .........
Ms. Murphy...................  .........  .........  .........
Mr. Gomez....................         X   .........  .........
Mr. Horsford.................         X   .........  .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Estes to the 
amendment in the nature of a substitute to H.R. 397, which 
would provide for variable rate premiums for multiemployer 
plans, was defeated by a roll call vote of 17 yeas to 25 nays. 
The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    An amendment offered by MR. Marchant to the amendment in 
the nature of a substitute to H.R. 397, which would require 
payback of the loan if sponsoring employers have excess 
compensation, dividends, and redemptions, was withdrawn.
    The vote on the amendment offered by MR. Smith of Nebraska 
to the amendment in the nature of a substitute to H.R. 397, 
which would require plans receiving loans to allow active 
participants to withdraw promised benefits to rollover into an 
IRA, was defeated by a roll call vote of 17 yeas to 24 nays. 
The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........  .........  .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. LaHood to the 
amendment in the nature of a substitute to H.R. 397, which 
would require plans receiving loans to allow active 
participants to opt out of the plan and into a 401(k), was 
defeated by a roll call vote of 17 yeas to 24 nays. The vote 
was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........  .........  .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Rice to the 
amendment in the nature of a substitute to H.R. 397, which 
would change the funding and benefit rules for plans getting 
the loans, was defeated by a roll call vote of 17 yeas to 25 
nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........         X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Estes to the 
amendment in the nature of a substitute to H.R. 397, which 
would expand the required disclosure for certain plans, was 
defeated by a roll call vote of 17 yeas to 24 nays. The vote 
was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................  .........         X   .........  Mr. Brady......         X   .........  .........
Mr. Lewis....................  .........         X   .........  Mr. Nunes......         X   .........  .........
Mr. Doggett..................  .........         X   .........  Mr. Buchanan...         X   .........  .........
Mr. Thompson.................  .........         X   .........  Mr. Smith......         X   .........  .........
Mr. Larson...................  .........         X   .........  Mr. Marchant...         X   .........  .........
Mr. Blumenauer...............  .........         X   .........  Mr. Reed.......         X   .........  .........
Mr. Kind.....................  .........         X   .........  Mr. Kelly......         X   .........  .........
Mr. Pascrell.................  .........         X   .........  Mr. Holding....         X   .........  .........
Mr. Davis....................  .........         X   .........  Mr. Smith......         X   .........  .........
Ms. Sanchez..................  .........         X   .........  Mr. Rice.......         X   .........  .........
Mr. Higgins..................  .........         X   .........  Mr. Schweikert.         X   .........  .........
Ms. Sewell...................  .........         X   .........  Ms. Walorski...         X   .........  .........
Ms. DelBene..................  .........         X   .........  Mr. Lahood (Il)         X   .........  .........
Ms. Chu (Ca).................  .........         X   .........  Mr. Wenstrup...         X   .........  .........
Ms. Moore....................  .........         X   .........  Mr. Arrington..         X   .........  .........
Mr. Kildee...................  .........         X   .........  Mr. Ferguson...         X   .........  .........
Mr. Boyle....................  .........         X   .........  Mr. Estes......         X   .........  .........
Mr. Beyer....................  .........         X   .........
Mr. Evans....................  .........         X   .........
Mr. Schneider................  .........         X   .........
Mr. Suozzi...................  .........         X   .........
Mr. Panetta..................  .........         X   .........
Ms. Murphy...................  .........         X   .........
Mr. Gomez....................  .........         X   .........
Mr. Horsford.................  .........  .........  .........
----------------------------------------------------------------------------------------------------------------

    The Chairman's amendment in the nature of a substitute was 
adopted by a voice vote (with a quorum being present).
    H.R. 397 was ordered favorably reported to the House of 
Representatives as amended by a roll call vote of 25 yeas to 17 
nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representative            Yea        Nay      Present    Representative     Yea        Nay      Present
----------------------------------------------------------------------------------------------------------------
Mr. Neal.....................         X   .........  .........  Mr. Brady......  .........         X   .........
Mr. Lewis....................         X   .........  .........  Mr. Nunes......  .........         X   .........
Mr. Doggett..................         X   .........  .........  Mr. Buchanan...  .........         X   .........
Mr. Thompson.................         X   .........  .........  Mr. Smith (Ne).  .........         X   .........
Mr. Larson...................         X   .........  .........  Mr. Marchant...  .........         X   .........
Mr. Blumenauer...............         X   .........  .........  Mr. Reed.......  .........         X   .........
Mr. Kind.....................         X   .........  .........  Mr. Kelly......  .........         X   .........
Mr. Pascrell.................         X   .........  .........  Mr. Holding....  .........         X   .........
Mr. Davis....................         X   .........  .........  Mr. Smith (Mo).  .........         X   .........
Ms. Sanchez..................         X   .........  .........  Mr. Rice.......  .........         X   .........
Mr. Higgins..................         X   .........  .........  Mr. Schweikert.  .........         X   .........
Ms. Sewell...................         X   .........  .........  Ms. Walorski...  .........         X   .........
Ms. DelBene..................         X   .........  .........  Mr. Lahood.....  .........         X   .........
Ms. Chu......................         X   .........  .........  Mr. Wenstrup...  .........         X   .........
Ms. Moore....................         X   .........  .........  Mr. Arrington..  .........         X   .........
Mr. Kildee...................         X   .........  .........  Mr. Ferguson...  .........         X   .........
Mr. Boyle....................         X   .........  .........  Mr. Estes......  .........         X   .........
Mr. Beyer....................         X   .........  .........
Mr. Evans....................         X   .........  .........
Mr. Schneider................         X   .........  .........
Mr. Suozzi...................         X   .........  .........
Mr. Panetta..................         X   .........  .........
Ms. Murphy...................         X   .........  .........
Mr. Gomez....................         X   .........  .........
Mr. Horsford.................         X   .........  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    Clause 3(d)(1) of the Rules of the House of Representatives 
requires an estimate and a comparison of costs that would be 
incurred in carrying out H.R. 397. The Committee traditionally 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office (CBO) pursuant to section 402 
of the Congressional Budget Act of 1974. The Committee reports 
that because this cost estimate was not timely submitted to the 
Committee before the filing of this report, the Committee is 
not in a position to make a cost estimate for H.R. 397, as 
amended.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee states that the bill 
involves no new or increased budget authority. The Committee 
further states that the bill involves no new tax expenditure.

      C. Cost Estimate Prepared by the Congressional Budget Office

    With respects to the requirements of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, the 
Committee has requested but not received a cost estimate for 
the bill from the Director of the Congressional Budget Office.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee made findings and recommendations that are 
reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains a measure that authorizes funding, so a statement 
of general performance goals and objectives is required.
    Section 3 of the bill creates and authorizes funding for 
the Pension Rehabilitation Trust Fund. The Pension 
Rehabilitation Administration is authorized make loans to 
eligible multiemployer plans from the Pension Rehabilitation 
Trust Fund and to collect payments of interest and principal 
from those plans over time. The objective of these loans is to 
enable the plans that receive them to avoid, or emerge from, 
insolvency; to enable the plans to pay benefits to those 
participants and beneficiaries to whom benefits are owed; to 
pay interest on the loan during the period of the loan; and to 
accumulate sufficient funds to repay the loan principal when 
due.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

            D. Applicability of House Rule XXI, Clause 5(b)

    Clause 5(b) of rule XXI of the Rules of the House of 
Representatives provides, in part, that ``It shall not be in 
order to consider a bill, joint resolution, amendment, or 
conference report carrying a retroactive Federal income tax 
rate increase.'' [The Committee, after careful review, states 
that the bill does not involve any retroactive Federal income 
tax rate increase within the meaning of the rule.]

                       E. Tax Complexity Analysis

    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the RRA because the bill 
contains no provision that amends the Internal Revenue Code of 
1986 and has ``widespread applicability'' to individuals or 
small businesses within the meaning of the rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
to Congress pursuant to section 21 of Pub. L. No. 111-139; or 
(3) a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance, published 
pursuant to section 6104 of title 31, United States Code.

                              H. Hearings

    In compliance with Sec. 103(i) of H. Res. 6 (116th 
Congress) (1) the following hearing was used to develop or 
consider H.R. 397:
    On February 6, 2019, the Ways and Means Committee held a 
hearing on ``Improving Retirement Security for America's 
Workers.''

              VI. CHANGES IN EXISTING LAW MADE BY THE BILL


            A. Changes in Existing Law Proposed by the Bill

    Pursuant to clause 3(e)(1)(B) of rule XIII of the Rules of 
the House of Representatives, changes in existing law proposed 
by the bill are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                     INTERNAL REVENUE CODE OF 1986



           *       *       *       *       *       *       *
Subtitle A--Income Taxes

           *       *       *       *       *       *       *


CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *


Subchapter D--DEFERRED COMPENSATION, ETC.

           *       *       *       *       *       *       *


   PART III--RULES RELATING TO MINIMUM FUNDING STANDARDS AND BENEFIT 
LIMITATIONS

           *       *       *       *       *       *       *


Subpart A--MINIMUM FUNDING STANDARDS FOR PENSION PLANS

           *       *       *       *       *       *       *


SEC. 432. ADDITIONAL FUNDING RULES FOR MULTIEMPLOYER PLANS IN 
                    ENDANGERED STATUS OR CRITICAL STATUS.

  (a) General rule.--For purposes of this part, in the case of 
a multiemployer plan in effect on July 16, 2006--
          (1) if the plan is in endangered status--
                  (A) the plan sponsor shall adopt and 
                implement a funding improvement plan in 
                accordance with the requirements of subsection 
                (c), and
                  (B) the requirements of subsection (d) shall 
                apply during the funding plan adoption period 
                and the funding improvement period,
          (2) if the plan is in critical status--
                  (A) the plan sponsor shall adopt and 
                implement a rehabilitation plan in accordance 
                with the requirements of subsection (e), and
                  (B) the requirements of subsection (f) shall 
                apply during the rehabilitation plan adoption 
                period and the rehabilitation period, and
          (3) if the plan is in critical and declining status--
                  (A) the requirements of paragraph (2) shall 
                apply to the plan; and
                  (B) the plan sponsor may, by plan amendment, 
                suspend benefits in accordance with the 
                requirements of subsection (e)(9).
  (b) Determination of endangered and critical status.--For 
purposes of this section--
          (1) Endangered status.--A multiemployer plan is in 
        endangered status for a plan year if, as determined by 
        the plan actuary under paragraph (3), the plan is not 
        in critical status for the plan year and is not 
        described in paragraph (5), and, as of the beginning of 
        the plan year, either--
                  (A) the plan's funded percentage for such 
                plan year is less than 80 percent, or
                  (B) the plan has an accumulated funding 
                deficiency for such plan year, or is projected 
                to have such an accumulated funding deficiency 
                for any of the 6 succeeding plan years, taking 
                into account any extension of amortization 
                periods under section 431(d).
        For purposes of this section, a plan shall be treated 
        as in seriously endangered status for a plan year if 
        the plan is described in both subparagraphs (A) and 
        (B).
          (2) Critical status.--A multiemployer plan is in 
        critical status for a plan year if, as determined by 
        the plan actuary under paragraph (3), the plan is 
        described in 1 or more of the following subparagraphs 
        as of the beginning of the plan year:
                  (A) A plan is described in this subparagraph 
                if--
                          (i) the funded percentage of the plan 
                        is less than 65 percent, and
                          (ii) the sum of--
                                  (I) the fair market value of 
                                plan assets, plus
                                  (II) the present value of the 
                                reasonably anticipated employer 
                                contributions for the current 
                                plan year and each of the 6 
                                succeeding plan years, assuming 
                                that the terms of all 
                                collective bargaining 
                                agreements pursuant to which 
                                the plan is maintained for the 
                                current plan year continue in 
                                effect for succeeding plan 
                                years,
                 is less than the present value of all 
                nonforfeitable benefits projected to be payable 
                under the plan during the current plan year and 
                each of the 6 succeeding plan years (plus 
                administrative expenses for such plan years).
                  (B) A plan is described in this subparagraph 
                if--
                          (i) the plan has an accumulated 
                        funding deficiency for the current plan 
                        year, not taking into account any 
                        extension of amortization periods under 
                        section 431(d), or
                          (ii) the plan is projected to have an 
                        accumulated funding deficiency for any 
                        of the 3 succeeding plan years (4 
                        succeeding plan years if the funded 
                        percentage of the plan is 65 percent or 
                        less), not taking into account any 
                        extension of amortization periods under 
                        section 431(d).
                  (C) A plan is described in this subparagraph 
                if--
                          (i)(I) the plan's normal cost for the 
                        current plan year, plus interest 
                        (determined at the rate used for 
                        determining costs under the plan) for 
                        the current plan year on the amount of 
                        unfunded benefit liabilities under the 
                        plan as of the last date of the 
                        preceding plan year, exceeds
                                  (II) the present value of the 
                                reasonably anticipated employer 
                                and employee contributions for 
                                the current plan year,
                          (ii) the present value, as of the 
                        beginning of the current plan year, of 
                        nonforfeitable benefits of inactive 
                        participants is greater than the 
                        present value of nonforfeitable 
                        benefits of active participants, and
                          (iii) the plan has an accumulated 
                        funding deficiency for the current plan 
                        year, or is projected to have such a 
                        deficiency for any of the 4 succeeding 
                        plan years, not taking into account any 
                        extension of amortization periods under 
                        section 431(d).
                  (D) A plan is described in this subparagraph 
                if the sum of--
                          (i) the fair market value of plan 
                        assets, plus
                          (ii) the present value of the 
                        reasonably anticipated employer 
                        contributions for the current plan year 
                        and each of the 4 succeeding plan 
                        years, assuming that the terms of all 
                        collective bargaining agreements 
                        pursuant to which the plan is 
                        maintained for the current plan year 
                        continue in effect for succeeding plan 
                        years,
                is less than the present value of all benefits 
                projected to be payable under the plan during 
                the current plan year and each of the 4 
                succeeding plan years (plus administrative 
                expenses for such plan years).
          (3) Annual certification by plan actuary.--
                  (A) In general.--Not later than the 90th day 
                of each plan year of a multiemployer plan, the 
                plan actuary shall certify to the Secretary and 
                to the plan sponsor--
                          (i) whether or not the plan is in 
                        endangered status for such plan year, 
                        or would be in endangered status for 
                        such plan year but for paragraph (5), 
                        whether or not the plan is or will be 
                        in critical status for such plan year 
                        or for any of the succeeding 5 plan 
                        years, and whether or not the plan is 
                        or will be in critical and declining 
                        status for such plan year, and
                          (ii) in the case of a plan which is 
                        in a funding improvement or 
                        rehabilitation period, whether or not 
                        the plan is making the scheduled 
                        progress in meeting the requirements of 
                        its funding improvement or 
                        rehabilitation plan.
                  (B) Actuarial projections of assets and 
                liabilities.--
                          (i) In general.--Except as provided 
                        in clause (iv), in making the 
                        determinations and projections under 
                        this subsection, the plan actuary shall 
                        make projections required for the 
                        current and succeeding plan years of 
                        the current value of the assets of the 
                        plan and the present value of all 
                        liabilities to participants and 
                        beneficiaries under the plan for the 
                        current plan year as of the beginning 
                        of such year. The actuary's projections 
                        shall be based on reasonable actuarial 
                        estimates, assumptions, and methods 
                        that, except as provided in clause 
                        (iii), offer the actuary's best 
                        estimate of anticipated experience 
                        under the plan. The projected present 
                        value of liabilities as of the 
                        beginning of such year shall be 
                        determined based on the most recent of 
                        either--
                                  (I) the actuarial statement 
                                required under section 103(d) 
                                of the Employee Retirement 
                                Income Security Act of 1974 
                                with respect to the most 
                                recently filed annual report, 
                                or
                                  (II) the actuarial valuation 
                                for the preceding plan year.
                          (ii) Determinations of future 
                        contributions.--Any actuarial 
                        projection of plan assets shall 
                        assume--
                                  (I) reasonably anticipated 
                                employer contributions for the 
                                current and succeeding plan 
                                years, assuming that the terms 
                                of the one or more collective 
                                bargaining agreements pursuant 
                                to which the plan is maintained 
                                for the current plan year 
                                continue in effect for 
                                succeeding plan years, or
                                  (II) that employer 
                                contributions for the most 
                                recent plan year will continue 
                                indefinitely, but only if the 
                                plan actuary determines there 
                                have been no significant 
                                demographic changes that would 
                                make such assumption 
                                unreasonable.
                          (iii) Projected industry activity.--
                        Any projection of activity in the 
                        industry or industries covered by the 
                        plan, including future covered 
                        employment and contribution levels, 
                        shall be based on information provided 
                        by the plan sponsor, which shall act 
                        reasonably and in good faith.
                          (iv) Projections relating to critical 
                        status in succeeding plan years.--
                        Clauses (i) and (ii) (other than the 
                        2nd sentence of clause (i)) may be 
                        disregarded by a plan actuary in the 
                        case of any certification of whether a 
                        plan will be in critical status in a 
                        succeeding plan year, except that a 
                        plan sponsor may not elect to be in 
                        critical status for a plan year under 
                        paragraph (4) in any case in which the 
                        certification upon which such election 
                        would be based is made without regard 
                        to such clauses.
                          (v) Projections of critical and 
                        declining status.--In determining 
                        whether a plan is in critical and 
                        declining status as described in 
                        subsection (e)(9), clauses (i), (ii), 
                        and (iii) shall apply, except that--
                                  (I) if reasonable, the plan 
                                actuary shall assume that each 
                                contributing employer in 
                                compliance continues to comply 
                                through the end of the 
                                rehabilitation period or such 
                                later time as provided in 
                                subsection (e)(3)(A)(ii) with 
                                the terms of the rehabilitation 
                                plan that correspond to the 
                                schedule adopted or imposed 
                                under subsection (e), and
                                  (II) the plan actuary shall 
                                take into account any 
                                suspensions of benefits 
                                described in subsection (e)(9) 
                                adopted in a prior plan year 
                                that are still in effect.
                  (C) Penalty for failure to secure timely 
                actuarial certification.--Any failure of the 
                plan's actuary to certify the plan's status 
                under this subsection by the date specified in 
                subparagraph (A) shall be treated for purposes 
                of section 502(c)(2) of the Employee Retirement 
                Income Security Act of 1974 as a failure or 
                refusal by the plan administrator to file the 
                annual report required to be filed with the 
                Secretary under section 101(b)(1) of such Act.
                  (D) Notice.--
                          (i) In general.--In any case in which 
                        it is certified under subparagraph (A) 
                        that a multiemployer plan is or will be 
                        in endangered or critical status for a 
                        plan year or in which a plan sponsor 
                        elects to be in critical status for a 
                        plan year under paragraph (4), the plan 
                        sponsor shall, not later than 30 days 
                        after the date of the certification, 
                        provide notification of the endangered 
                        or critical status to the participants 
                        and beneficiaries, the bargaining 
                        parties, the Pension Benefit Guaranty 
                        Corporation, and the Secretary of 
                        Labor. In any case in which a plan 
                        sponsor elects to be in critical status 
                        for a plan year under paragraph (4), 
                        the plan sponsor shall notify the 
                        Secretary of such election not later 
                        than 30 days after the date of such 
                        certification or such other time as the 
                        Secretary may prescribe by regulations 
                        or other guidance.
                          (ii) Plans in critical status.--If it 
                        is certified under subparagraph (A) 
                        that a multiemployer plan is or will be 
                        in critical status, the plan sponsor 
                        shall include in the notice under 
                        clause (i) an explanation of the 
                        possibility that--
                                  (I) adjustable benefits (as 
                                defined in subsection (e)(8)) 
                                may be reduced, and
                                  (II) such reductions may 
                                apply to participants and 
                                beneficiaries whose benefit 
                                commencement date is on or 
                                after the date such notice is 
                                provided for the first plan 
                                year in which the plan is in 
                                critical status.
                          (iii) In the case of a multiemployer 
                        plan that would be in endangered status 
                        but for paragraph (5), the plan sponsor 
                        shall provide notice to the bargaining 
                        parties and the Pension Benefit 
                        Guaranty Corporation that the plan 
                        would be in endangered status but for 
                        such paragraph.
                          (iv) Model notice.--The Secretary, in 
                        consultation with the Secretary of 
                        Labor, shall prescribe a model notice 
                        that a multiemployer plan may use to 
                        satisfy the requirements under clauses 
                        (ii) and (iii).
                          (v) Notice of projection to be in 
                        critical status in a future plan 
                        year.--In any case in which it is 
                        certified under subparagraph (A)(i) 
                        that a multiemployer plan will be in 
                        critical status for any of 5 succeeding 
                        plan years (but not for the current 
                        plan year) and the plan sponsor of such 
                        plan has not made an election to be in 
                        critical status for the plan year under 
                        paragraph (4), the plan sponsor shall, 
                        not later than 30 days after the date 
                        of the certification, provide 
                        notification of the projected critical 
                        status to the Pension Benefit Guaranty 
                        Corporation.
          (4) Election to be in critical status.--
        Notwithstanding paragraph (2) and subject to paragraph 
        (3)(B)(iv)--
                  (A) the plan sponsor of a multiemployer plan 
                that is not in critical status for a plan year 
                but that is projected by the plan actuary, 
                pursuant to the determination under paragraph 
                (3), to be in critical status in any of the 
                succeeding 5 plan years may, not later than 30 
                days after the date of the certification under 
                paragraph (3)(A), elect to be in critical 
                status effective for the current plan year,
                  (B) the plan year in which the plan sponsor 
                elects to be in critical status under 
                subparagraph (A) shall be treated for purposes 
                of this section as the first year in which the 
                plan is in critical status, regardless of the 
                date on which the plan first satisfies the 
                criteria for critical status under paragraph 
                (2), and
                  (C) a plan that is in critical status under 
                this paragraph shall not emerge from critical 
                status except in accordance with subsection 
                (e)(4)(B).
          (5) Special rule.--A plan is described in this 
        paragraph if--
                  (A) as part of the actuarial certification of 
                endangered status under paragraph (3)(A) for 
                the plan year, the plan actuary certifies that 
                the plan is projected to no longer be described 
                in either paragraph (1)(A) or paragraph (1)(B) 
                as of the end of the tenth plan year ending 
                after the plan year to which the certification 
                relates, and
                  (B) the plan was not in critical or 
                endangered status for the immediately preceding 
                plan year.
          (6) Critical and declining status.--For purposes of 
        this section, a plan in critical status shall be 
        treated as in critical and declining status if the plan 
        is described in one or more of subparagraphs (A), (B), 
        (C), and (D) of paragraph (2) and the plan is projected 
        to become insolvent within the meaning of section 418E 
        during the current plan year or any of the 14 
        succeeding plan years (19 succeeding plan years if the 
        plan has a ratio of inactive participants to active 
        participants that exceeds 2 to 1 or if the funded 
        percentage of the plan is less than 80 percent).
  (c) Funding improvement plan must be adopted for 
multiemployer plans in endangered status.--
          (1) In general.--In any case in which a multiemployer 
        plan is in endangered status for a plan year, the plan 
        sponsor, in accordance with this subsection--
                  (A) shall adopt a funding improvement plan 
                not later than 240 days following the required 
                date for the actuarial certification of 
                endangered status under subsection (b)(3)(A), 
                and
                  (B) within 30 days after the adoption of the 
                funding improvement plan--
                          (i) shall provide to the bargaining 
                        parties 1 or more schedules showing 
                        revised benefit structures, revised 
                        contribution structures, or both, 
                        which, if adopted, may reasonably be 
                        expected to enable the multiemployer 
                        plan to meet the applicable benchmarks 
                        in accordance with the funding 
                        improvement plan, including--
                                  (I) one proposal for 
                                reductions in the amount of 
                                future benefit accruals 
                                necessary to achieve the 
                                applicable benchmarks, assuming 
                                no amendments increasing 
                                contributions under the plan 
                                (other than amendments 
                                increasing contributions 
                                necessary to achieve the 
                                applicable benchmarks after 
                                amendments have reduced future 
                                benefit accruals to the maximum 
                                extent permitted by law), and
                                  (II) one proposal for 
                                increases in contributions 
                                under the plan necessary to 
                                achieve the applicable 
                                benchmarks, assuming no 
                                amendments reducing future 
                                benefit accruals under the 
                                plan, and
                          (ii) may, if the plan sponsor deems 
                        appropriate, prepare and provide the 
                        bargaining parties with additional 
                        information relating to contribution 
                        rates or benefit reductions, 
                        alternative schedules, or other 
                        information relevant to achieving the 
                        applicable benchmarks in accordance 
                        with the funding improvement plan.
                For purposes of this section, the term 
                ``applicable benchmarks'' means the 
                requirements applicable to the multiemployer 
                plan under paragraph (3) (as modified by 
                paragraph (5)).
          (2) Exception for years after process begins.--
        Paragraph (1) shall not apply to a plan year if such 
        year is in a funding plan adoption period or funding 
        improvement period by reason of the plan being in 
        endangered status for a preceding plan year. For 
        purposes of this section, such preceding plan year 
        shall be the initial determination year with respect to 
        the funding improvement plan to which it relates.
          (3) Funding improvement plan.--For purposes of this 
        section--
                  (A) In general.--A funding improvement plan 
                is a plan which consists of the actions, 
                including options or a range of options to be 
                proposed to the bargaining parties, formulated 
                to provide, based on reasonably anticipated 
                experience and reasonable actuarial 
                assumptions, for the attainment by the plan 
                during the funding improvement period of the 
                following requirements:
                          (i) Increase in plan's funding 
                        percentage.--The plan's funded 
                        percentage as of the close of the 
                        funding improvement period equals or 
                        exceeds a percentage equal to the sum 
                        of--
                                  (I) such percentage as of the 
                                beginning of the first plan 
                                year for which the plan is 
                                certified to be in endangered 
                                status pursuant to paragraph 
                                (b)(3), plus
                                  (II) 33 percent of the 
                                difference between 100 percent 
                                and the percentage under 
                                subclause (I).
                          (ii) Avoidance of accumulated funding 
                        deficiencies.--No accumulated funding 
                        deficiency for the last plan year 
                        during the funding improvement period 
                        (taking into account any extension of 
                        amortization periods under section 
                        431(d)).
                  (B) Seriously endangered plans.--In the case 
                of a plan in seriously endangered status, 
                except as provided in paragraph (5), 
                subparagraph (A)(i)(II) shall be applied by 
                substituting ``20 percent'' for ``33 percent''.
          (4) Funding improvement period.--For purposes of this 
        section--
                  (A) In general.--The funding improvement 
                period for any funding improvement plan adopted 
                pursuant to this subsection is the 10-year 
                period beginning on the first day of the first 
                plan year of the multiemployer plan beginning 
                after the earlier of--
                          (i) the second anniversary of the 
                        date of the adoption of the funding 
                        improvement plan, or
                          (ii) the expiration of the collective 
                        bargaining agreements in effect on the 
                        due date for the actuarial 
                        certification of endangered status for 
                        the initial determination year under 
                        subsection (b)(3)(A) and covering, as 
                        of such due date, at least 75 percent 
                        of the active participants in such 
                        multiemployer plan.
                  (B) Seriously endangered plans.--In the case 
                of a plan in seriously endangered status, 
                except as provided in paragraph (5), 
                subparagraph (A) shall be applied by 
                substituting ``15-year period'' for ``10-year 
                period''.
                  (C) Coordination with changes in status.--
                          (i) Plans no longer in endangered 
                        status.--If the plan's actuary 
                        certifies under subsection (b)(3)(A) 
                        for a plan year in any funding plan 
                        adoption period or funding improvement 
                        period that the plan is no longer in 
                        endangered status and is not in 
                        critical status, the funding plan 
                        adoption period or funding improvement 
                        period, whichever is applicable, shall 
                        end as of the close of the preceding 
                        plan year.
                          (ii) Plans in critical status.--If 
                        the plan's actuary certifies under 
                        subsection (b)(3)(A) for a plan year in 
                        any funding plan adoption period or 
                        funding improvement period that the 
                        plan is in critical status, the funding 
                        plan adoption period or funding 
                        improvement period, whichever is 
                        applicable, shall end as of the close 
                        of the plan year preceding the first 
                        plan year in the rehabilitation period 
                        with respect to such status.
                  (D) Plans in endangered status at end of 
                period.--If the plan's actuary certifies under 
                subsection (b)(3)(A) for the first plan year 
                following the close of the period described in 
                subparagraph (A) that the plan is in endangered 
                status, the provisions of this subsection and 
                subsection (d) shall be applied as if such 
                first plan year were an initial determination 
                year, except that the plan may not be amended 
                in a manner inconsistent with the funding 
                improvement plan in effect for the preceding 
                plan year until a new funding improvement plan 
                is adopted.
          (5) Special rules for seriously endangered plans more 
        than 70 percent funded.--
                  (A) In general.--If the funded percentage of 
                a plan in seriously endangered status was more 
                than 70 percent as of the beginning of the 
                initial determination year--
                          (i) paragraphs (3)(B) and (4)(B) 
                        shall apply only if the plan's actuary 
                        certifies, within 30 days after the 
                        certification under subsection 
                        (b)(3)(A) for the initial determination 
                        year, that, based on the terms of the 
                        plan and the collective bargaining 
                        agreements in effect at the time of 
                        such certification, the plan is not 
                        projected to meet the requirements of 
                        paragraph (3)(A) (without regard to 
                        paragraphs (3)(B) and (4)(B)), and
                          (ii) if there is a certification 
                        under clause (i), the plan may, in 
                        formulating its funding improvement 
                        plan, only take into account the rules 
                        of paragraph (3)(B) and (4)(B) for plan 
                        years in the funding improvement period 
                        beginning on or before the date on 
                        which the last of the collective 
                        bargaining agreements described in 
                        paragraph (4)(A)(ii) expires.
                  (B) Special rule after expiration of 
                agreements.--Notwithstanding subparagraph 
                (A)(ii), if, for any plan year ending after the 
                date described in subparagraph (A)(ii), the 
                plan actuary certifies (at the time of the 
                annual certification under subsection (b)(3)(A) 
                for such plan year) that, based on the terms of 
                the plan and collective bargaining agreements 
                in effect at the time of that annual 
                certification, the plan is not projected to be 
                able to meet the requirements of paragraph 
                (3)(A) (without regard to paragraphs (3)(B) and 
                (4)(B)), paragraphs (3)(B) and (4)(B) shall 
                continue to apply for such year.
          (6) Updates to funding improvement plans and 
        schedules.--
                  (A) Funding improvement plan.--The plan 
                sponsor shall annually update the funding 
                improvement plan and shall file the update with 
                the plan's annual report under section 104 of 
                the Employee Retirement Income Security Act of 
                1974.
                  (B) Schedules.--The plan sponsor shall 
                annually update any schedule of contribution 
                rates provided under this subsection to reflect 
                the experience of the plan.
                  (C) Duration of schedule.--A schedule of 
                contribution rates provided by the plan sponsor 
                and relied upon by bargaining parties in 
                negotiating a collective bargaining agreement 
                shall remain in effect for the duration of that 
                collective bargaining agreement.
          (7) Imposition of schedule where failure to adopt 
        funding improvement plan.--
                  (A) Initial contribution schedule.--If--
                          (i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan that was in effect 
                        at the time the plan entered endangered 
                        status expires, and
                          (ii) after receiving one or more 
                        schedules from the plan sponsor under 
                        paragraph (1)(B), the bargaining 
                        parties with respect to such agreement 
                        fail to adopt a contribution schedule 
                        with terms consistent with the funding 
                        improvement plan and a schedule from 
                        the plan sponsor,
                the plan sponsor shall implement the schedule 
                described in paragraph (1)(B)(i)(I) beginning 
                on the date specified in subparagraph (C).
                  (B) Subsequent contribution schedule.--If--
                          (i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan in accordance with a 
                        schedule provided by the plan sponsor 
                        pursuant to a funding improvement plan 
                        (or imposed under subparagraph (A)) 
                        expires while the plan is still in 
                        endangered status, and
                          (ii) after receiving one or more 
                        updated schedules from the plan sponsor 
                        under paragraph (6)(B), the bargaining 
                        parties with respect to such agreement 
                        fail to adopt a contribution schedule 
                        with terms consistent with the updated 
                        funding improvement plan and a schedule 
                        from the plan sponsor,
                then the contribution schedule applicable under 
                the expired collective bargaining agreement, as 
                updated and in effect on the date the 
                collective bargaining agreement expires, shall 
                be implemented by the plan sponsor beginning on 
                the date specified in subparagraph (C).
                  (C) Date of implementation.--The date 
                specified in this subparagraph is the date 
                which is 180 days after the date on which the 
                collective bargaining agreement described in 
                subparagraph (A) or (B) expires.
          (8) Funding plan adoption period.--For purposes of 
        this section, the term ``funding plan adoption period'' 
        means the period beginning on the date of the 
        certification under subsection (b)(3)(A) for the 
        initial determination year and ending on the day before 
        the first day of the funding improvement period.
  (d) Rules for operation of plan during adoption and 
improvement periods.--
          (1) Compliance with funding improvement plan.--
                  (A) In general.--A plan may not be amended 
                after the date of the adoption of a funding 
                improvement plan under subsection (c) so as to 
                be inconsistent with the funding improvement 
                plan.
                  (B) Special rules for benefit increases.--A 
                plan may not be amended after the date of the 
                adoption of a funding improvement plan under 
                subsection (c) so as to increase benefits, 
                including future benefit accruals, unless the 
                plan actuary certifies that such increase is 
                paid for out of additional contributions not 
                contemplated by the funding improvement plan, 
                and, after taking into account the benefit 
                increase, the multiemployer plan still is 
                reasonably expected to meet the applicable 
                benchmark on the schedule contemplated in the 
                funding improvement plan.
          (2) Special rules for plan adoption period.--During 
        the period beginning on the date of the certification 
        under subsection (b)(3)(A) for the initial 
        determination year and ending on the date of the 
        adoption of a funding improvement plan--
                  (A) the plan sponsor may not accept a 
                collective bargaining agreement or 
                participation agreement with respect to the 
                multiemployer plan that provides for--
                          (i) a reduction in the level of 
                        contributions for any participants,
                          (ii) a suspension of contributions 
                        with respect to any period of service, 
                        or
                          (iii) any new direct or indirect 
                        exclusion of younger or newly hired 
                        employees from plan participation, and
                  (B) no amendment of the plan which increases 
                the liabilities of the plan by reason of any 
                increase in benefits, any change in the accrual 
                of benefits, or any change in the rate at which 
                benefits become nonforfeitable under the plan 
                may be adopted unless the amendment is required 
                as a condition of qualification under part I of 
                subchapter D of chapter 1 or to comply with 
                other applicable law.
  (e) Rehabilitation plan must be adopted for multiemployer 
plans in critical status.--
          (1) In general.--In any case in which a multiemployer 
        plan is in critical status for a plan year, the plan 
        sponsor, in accordance with this subsection--
                  (A) shall adopt a rehabilitation plan not 
                later than 240 days following the required date 
                for the actuarial certification of critical 
                status under subsection (b)(3)(A), and
                  (B) within 30 days after the adoption of the 
                rehabilitation plan--
                          (i) shall provide to the bargaining 
                        parties 1 or more schedules showing 
                        revised benefit structures, revised 
                        contribution structures, or both, 
                        which, if adopted, may reasonably be 
                        expected to enable the multiemployer 
                        plan to emerge from critical status in 
                        accordance with the rehabilitation 
                        plan, and
                          (ii) may, if the plan sponsor deems 
                        appropriate, prepare and provide the 
                        bargaining parties with additional 
                        information relating to contribution 
                        rates or benefit reductions, 
                        alternative schedules, or other 
                        information relevant to emerging from 
                        critical status in accordance with the 
                        rehabilitation plan.
        The schedule or schedules described in subparagraph 
        (B)(i) shall reflect reductions in future benefit 
        accruals and adjustable benefits, and increases in 
        contributions, that the plan sponsor determines are 
        reasonably necessary to emerge from critical status. 
        One schedule shall be designated as the default 
        schedule and such schedule shall assume that there are 
        no increases in contributions under the plan other than 
        the increases necessary to emerge from critical status 
        after future benefit accruals and other benefits (other 
        than benefits the reduction or elimination of which are 
        not permitted under section 411(d)(6)) have been 
        reduced to the maximum extent permitted by law.
          (2) Exception for years after process begins.--
        Paragraph (1) shall not apply to a plan year if such 
        year is in a rehabilitation plan adoption period or 
        rehabilitation period by reason of the plan being in 
        critical status for a preceding plan year. For purposes 
        of this section, such preceding plan year shall be the 
        initial critical year with respect to the 
        rehabilitation plan to which it relates.
          (3) Rehabilitation plan.--For purposes of this 
        section--
                  (A) In general.--A rehabilitation plan is a 
                plan which consists of--
                          (i) actions, including options or a 
                        range of options to be proposed to the 
                        bargaining parties, formulated, based 
                        on reasonably anticipated experience 
                        and reasonable actuarial assumptions, 
                        to enable the plan to cease to be in 
                        critical status by the end of the 
                        rehabilitation period and may include 
                        reductions in plan expenditures 
                        (including plan mergers and 
                        consolidations), reductions in future 
                        benefit accruals or increases in 
                        contributions, if agreed to by the 
                        bargaining parties, or any combination 
                        of such actions, or
                          (ii) if the plan sponsor determines 
                        that, based on reasonable actuarial 
                        assumptions and upon exhaustion of all 
                        reasonable measures, the plan can not 
                        reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, reasonable 
                        measures to emerge from critical status 
                        at a later time or to forestall 
                        possible insolvency (within the meaning 
                        of section 4245 of the Employee 
                        Retirement Income Security Act of 
                        1974).
                A rehabilitation plan must provide annual 
                standards for meeting the requirements of such 
                rehabilitation plan. Such plan shall also 
                include the schedules required to be provided 
                under paragraph (1)(B)(i) and if clause (ii) 
                applies, shall set forth the alternatives 
                considered, explain why the plan is not 
                reasonably expected to emerge from critical 
                status by the end of the rehabilitation period, 
                and specify when, if ever, the plan is expected 
                to emerge from critical status in accordance 
                with the rehabilitation plan.
                  (B) Updates to rehabilitation plan and 
                schedules.--
                          (i) Rehabilitation plan.--The plan 
                        sponsor shall annually update the 
                        rehabilitation plan and shall file the 
                        update with the plan's annual report 
                        under section 104 of the Employee 
                        Retirement Income Security Act of 1974.
                          (ii) Schedules.--The plan sponsor 
                        shall annually update any schedule of 
                        contribution rates provided under this 
                        subsection to reflect the experience of 
                        the plan.
                          (iii) Duration of schedule.--A 
                        schedule of contribution rates provided 
                        by the plan sponsor and relied upon by 
                        bargaining parties in negotiating a 
                        collective bargaining agreement shall 
                        remain in effect for the duration of 
                        that collective bargaining agreement.
                  (C) Imposition of schedule where failure to 
                adopt rehabilitation plan.--
                          (i) Initial contribution schedule.--
                        If--
                                  (I) a collective bargaining 
                                agreement providing for 
                                contributions under a 
                                multiemployer plan that was in 
                                effect at the time the plan 
                                entered critical status 
                                expires, and
                                  (II) after receiving one or 
                                more schedules from the plan 
                                sponsor under paragraph (1)(B), 
                                the bargaining parties with 
                                respect to such agreement fail 
                                to adopt a contribution 
                                schedule with terms consistent 
                                with the rehabilitation plan 
                                and a schedule from the plan 
                                sponsor under paragraph 
                                (1)(B)(i),
                 the plan sponsor shall implement the schedule 
                described in the last sentence of paragraph (1) 
                beginning on the date specified in clause 
                (iii).
                          (ii) Subsequent contribution 
                        schedule.--If--
                                  (I) a collective bargaining 
                                agreement providing for 
                                contributions under a 
                                multiemployer plan in 
                                accordance with a schedule 
                                provided by the plan sponsor 
                                pursuant to a rehabilitation 
                                plan (or imposed under 
                                subparagraph (C)(i)) expires 
                                while the plan is still in 
                                critical status, and
                                  (II) after receiving one or 
                                more updated schedules from the 
                                plan sponsor under subparagraph 
                                (B)(ii), the bargaining parties 
                                with respect to such agreement 
                                fail to adopt a contribution 
                                schedule with terms consistent 
                                with the updated rehabilitation 
                                plan and a schedule from the 
                                plan sponsor,
                 then the contribution schedule applicable 
                under the expired collective bargaining 
                agreement, as updated and in effect on the date 
                the collective bargaining agreement expires, 
                shall be implemented by the plan sponsor 
                beginning on the date specified in clause 
                (iii).
                          (iii) Date of implementation.--The 
                        date specified in this subparagraph is 
                        the date which is 180 days after the 
                        date on which the collective bargaining 
                        agreement described in clause (ii) or 
                        (iii) expires.
          (4) Rehabilitation period.--For purposes of this 
        section--
                  (A) In general.--The rehabilitation period 
                for a plan in critical status is the 10-year 
                period beginning on the first day of the first 
                plan year of the multiemployer plan following 
                the earlier of--
                          (i) the second anniversary of the 
                        date of the adoption of the 
                        rehabilitation plan, or
                          (ii) the expiration of the collective 
                        bargaining agreements in effect on the 
                        due date for the actuarial 
                        certification of critical status for 
                        the initial critical year under 
                        subsection (a)(1) and covering, as of 
                        such date at least 75 percent of the 
                        active participants in such 
                        multiemployer plan.
                If a plan emerges from critical status as 
                provided under subparagraph (B) before the end 
                of such 10-year period, the rehabilitation 
                period shall end with the plan year preceding 
                the plan year for which the determination under 
                subparagraph (B) is made.
                  (B) Emergence.--
                          (i) In general.--A plan in critical 
                        status shall remain in such status 
                        until a plan year for which the plan 
                        actuary certifies, in accordance with 
                        subsection (b)(3)(A), that--
                                  (I) the plan is not described 
                                in one or more of the 
                                subparagraphs in subsection 
                                (b)(2) as of the beginning of 
                                the plan year,
                                  (II) the plan is not 
                                projected to have an 
                                accumulated funding deficiency 
                                for the plan year or any of the 
                                9 succeeding plan years, 
                                without regard to the use of 
                                the shortfall method but taking 
                                into account any extension of 
                                amortization periods under 
                                section 431(d)(2) or section 
                                412(e) (as in effect prior to 
                                the enactment of the Pension 
                                Protection Act of 2006), and
                                  (III) the plan is not 
                                projected to become insolvent 
                                within the meaning of section 
                                418E for any of the 30 
                                succeeding plan years.
                          (ii) Plans with certain amortization 
                        extensions.--
                                  (I) Special emergence rule.--
                                Notwithstanding clause (i), a 
                                plan in critical status that 
                                has an automatic extension of 
                                amortization periods under 
                                section 431(d)(1) shall no 
                                longer be in critical status if 
                                the plan actuary certifies for 
                                a plan year, in accordance with 
                                subsection (b)(3)(A), that--
                                          (aa) the plan is not 
                                        projected to have an 
                                        accumulated funding 
                                        deficiency for the plan 
                                        year or any of the 9 
                                        succeeding plan years, 
                                        without regard to the 
                                        use of the shortfall 
                                        method but taking into 
                                        account any extension 
                                        of amortization periods 
                                        under section 
                                        431(d)(1), and
                                          (bb) the plan is not 
                                        projected to become 
                                        insolvent within the 
                                        meaning of section 418E 
                                        for any of the 30 
                                        succeeding plan years,
                                 regardless of whether the plan 
                                is described in one or more of 
                                the subparagraphs in subsection 
                                (b)(2) as of the beginning of 
                                the plan year.
                                  (II) Reentry into critical 
                                status.--A plan that emerges 
                                from critical status under 
                                subclause (I) shall not reenter 
                                critical status for any 
                                subsequent plan year unless--
                                          (aa) the plan is 
                                        projected to have an 
                                        accumulated funding 
                                        deficiency for the plan 
                                        year or any of the 9 
                                        succeeding plan years, 
                                        without regard to the 
                                        use of the shortfall 
                                        method but taking into 
                                        account any extension 
                                        of amortization periods 
                                        under section 431(d), 
                                        or
                                          (bb) the plan is 
                                        projected to become 
                                        insolvent within the 
                                        meaning of section 418E 
                                        for any of the 30 
                                        succeeding plan years.
          (5) Rehabilitation plan adoption period.--For 
        purposes of this section, the term ``rehabilitation 
        plan adoption period'' means the period beginning on 
        the date of the certification under subsection 
        (b)(3)(A) for the initial critical year and ending on 
        the day before the first day of the rehabilitation 
        period.
          (6) Limitation on reduction in rates of future 
        accruals.--Any reduction in the rate of future accruals 
        under the default schedule described in the last 
        sentence of paragraph (1) shall not reduce the rate of 
        future accruals below--
                  (A) a monthly benefit (payable as a single 
                life annuity commencing at the participant's 
                normal retirement age) equal to 1 percent of 
                the contributions required to be made with 
                respect to a participant, or the equivalent 
                standard accrual rate for a participant or 
                group of participants under the collective 
                bargaining agreements in effect as of the first 
                day of the initial critical year, or
                  (B) if lower, the accrual rate under the plan 
                on such first day.
        The equivalent standard accrual rate shall be 
        determined by the plan sponsor based on the standard or 
        average contribution base units which the plan sponsor 
        determines to be representative for active participants 
        and such other factors as the plan sponsor determines 
        to be relevant. Nothing in this paragraph shall be 
        construed as limiting the ability of the plan sponsor 
        to prepare and provide the bargaining parties with 
        alternative schedules to the default schedule that 
        establish lower or higher accrual and contribution 
        rates than the rates otherwise described in this 
        paragraph.
          (7) Automatic employer surcharge.--
                  (A) Imposition of surcharge.--Each employer 
                otherwise obligated to make a contribution for 
                the initial critical year shall be obligated to 
                pay to the plan for such year a surcharge equal 
                to 5 percent of the contribution otherwise 
                required under the applicable collective 
                bargaining agreement (or other agreement 
                pursuant to which the employer contributes). 
                For each succeeding plan year in which the plan 
                is in critical status for a consecutive period 
                of years beginning with the initial critical 
                year, the surcharge shall be 10 percent of the 
                contribution otherwise so required.
                  (B) Enforcement of surcharge.--The surcharges 
                under subparagraph (A) shall be due and payable 
                on the same schedule as the contributions on 
                which the surcharges are based. Any failure to 
                make a surcharge payment shall be treated as a 
                delinquent contribution under section 515 of 
                the Employee Retirement Income Security Act of 
                1974 and shall be enforceable as such.
                  (C) Surcharge to terminate upon collective 
                bargaining agreement renegotiation.--The 
                surcharge under this paragraph shall cease to 
                be effective with respect to employees covered 
                by a collective bargaining agreement (or other 
                agreement pursuant to which the employer 
                contributes), beginning on the effective date 
                of a collective bargaining agreement (or other 
                such agreement) that includes terms consistent 
                with a schedule presented by the plan sponsor 
                under paragraph (1)(B)(i), as modified under 
                subparagraph (B) of paragraph (3).
                  (D) Surcharge not to apply until employer 
                receives notice.--The surcharge under this 
                paragraph shall not apply to an employer until 
                30 days after the employer has been notified by 
                the plan sponsor that the plan is in critical 
                status and that the surcharge is in effect.
                  (E) Surcharge not to generate increased 
                benefit accruals.--Notwithstanding any 
                provision of a plan to the contrary, the amount 
                of any surcharge under this paragraph shall not 
                be the basis for any benefit accrual under the 
                plan.
          (8) Benefit adjustments.--
                  (A) Adjustable benefits.--
                          (i) In general.--Notwithstanding 
                        section 411(d)(6), the plan sponsor 
                        shall, subject to the notice 
                        requirement under subparagraph (C), 
                        make any reductions to adjustable 
                        benefits which the plan sponsor deems 
                        appropriate, based upon the outcome of 
                        collective bargaining over the schedule 
                        or schedules provided under paragraph 
                        (1)(B)(i).
                          (ii) Exception for retirees.--Except 
                        in the case of adjustable benefits 
                        described in clause (iv)(III), the plan 
                        sponsor of a plan in critical status 
                        shall not reduce adjustable benefits of 
                        any participant or beneficiary whose 
                        benefit commencement date is before the 
                        date on which the plan provides notice 
                        to the participant or beneficiary under 
                        subsection (b)(3)(D) for the initial 
                        critical year.
                          (iii) Plan sponsor flexibility.--The 
                        plan sponsor shall include in the 
                        schedules provided to the bargaining 
                        parties an allowance for funding the 
                        benefits of participants with respect 
                        to whom contributions are not currently 
                        required to be made, and shall reduce 
                        their benefits to the extent permitted 
                        under this title and considered 
                        appropriate by the plan sponsor based 
                        on the plan's then current overall 
                        funding status.
                          (iv) Adjustable benefit defined.--For 
                        purposes of this paragraph, the term 
                        ``adjustable benefit'' means--
                                  (I) benefits, rights, and 
                                features under the plan, 
                                including post-retirement death 
                                benefits, 60-month guarantees, 
                                disability benefits not yet in 
                                pay status, and similar 
                                benefits,
                                  (II) any early retirement 
                                benefit or retirement-type 
                                subsidy (within the meaning of 
                                section 411(d)(6)(B)(i)) and 
                                any benefit payment option 
                                (other than the qualified joint 
                                and survivor annuity), and
                                  (III) benefit increases that 
                                would not be eligible for a 
                                guarantee under section 4022A 
                                of the Employee Retirement 
                                Income Security Act of 1974 on 
                                the first day of initial 
                                critical year because the 
                                increases were adopted (or, if 
                                later, took effect) less than 
                                60 months before such first 
                                day.
                  (B) Normal retirement benefits protected.--
                Except as provided in subparagraph 
                (A)(iv)(III), nothing in this paragraph shall 
                be construed to permit a plan to reduce the 
                level of a participant's accrued benefit 
                payable at normal retirement age.
                  (C) Notice requirements.--
                          (i) In general.--No reduction may be 
                        made to adjustable benefits under 
                        subparagraph (A) unless notice of such 
                        reduction has been given at least 30 
                        days before the general effective date 
                        of such reduction for all participants 
                        and beneficiaries to--
                                  (I) plan participants and 
                                beneficiaries,
                                  (II) each employer who has an 
                                obligation to contribute 
                                (within the meaning of section 
                                4212(a) of the Employee 
                                Retirement Income Security Act 
                                of 1974) under the plan, and
                                  (III) each employee 
                                organization which, for 
                                purposes of collective 
                                bargaining, represents plan 
                                participants employed by such 
                                an employer.
                          (ii) Content of notice.--The notice 
                        under clause (i) shall contain--
                                  (I) sufficient information to 
                                enable participants and 
                                beneficiaries to understand the 
                                effect of any reduction on 
                                their benefits, including an 
                                estimate (on an annual or 
                                monthly basis) of any affected 
                                adjustable benefit that a 
                                participant or beneficiary 
                                would otherwise have been 
                                eligible for as of the general 
                                effective date described in 
                                clause (i), and
                                  (II) information as to the 
                                rights and remedies of plan 
                                participants and beneficiaries 
                                as well as how to contact the 
                                Department of Labor for further 
                                information and assistance 
                                where appropriate.
                          (iii) Form and manner.--Any notice 
                        under clause (i)--
                                  (I) shall be provided in a 
                                form and manner prescribed in 
                                regulations of the Secretary, 
                                in consultation with the 
                                Secretary of Labor,
                                  (II) shall be written in a 
                                manner so as to be understood 
                                by the average plan 
                                participant, and
                                  (III) may be provided in 
                                written, electronic, or other 
                                appropriate form to the extent 
                                such form is reasonably 
                                accessible to persons to whom 
                                the notice is required to be 
                                provided.
                 The Secretary shall in the regulations 
                prescribed under subclause (I) establish a 
                model notice that a plan sponsor may use to 
                meet the requirements of this subparagraph.
          (9) Benefit suspensions for multiemployer plans in 
        critical and declining status.--
                  (A) In general.--Notwithstanding section 
                411(d)(6) and subject to subparagraphs (B) 
                through (I), the plan sponsor of a plan in 
                critical and declining status may, by plan 
                amendment, suspend benefits which the sponsor 
                deems appropriate.
                  (B) Suspension of benefits.--
                          (i) Suspension of benefits defined.--
                        For purposes of this subsection, the 
                        term ``suspension of benefits'' means 
                        the temporary or permanent reduction of 
                        any current or future payment 
                        obligation of the plan to any 
                        participant or beneficiary under the 
                        plan, whether or not in pay status at 
                        the time of the suspension of benefits.
                          (ii) Length of suspensions.--Any 
                        suspension of benefits made under 
                        subparagraph (A) shall remain in effect 
                        until the earlier of when the plan 
                        sponsor provides benefit improvements 
                        in accordance with subparagraph (E) or 
                        the suspension of benefits expires by 
                        its own terms.
                          (iii) No liability.--The plan shall 
                        not be liable for any benefit payments 
                        not made as a result of a suspension of 
                        benefits under this paragraph.
                          (iv) Applicability.--For purposes of 
                        this paragraph, all references to 
                        suspensions of benefits, increases in 
                        benefits, or resumptions of suspended 
                        benefits with respect to participants 
                        shall also apply with respect to 
                        benefits of beneficiaries or 
                        alternative payees of participants.
                          (v) Retiree representative.--
                                  (I) In general.--In the case 
                                of a plan with 10,000 or more 
                                participants, not later than 60 
                                days prior to the plan sponsor 
                                submitting an application to 
                                suspend benefits, the plan 
                                sponsor shall select a 
                                participant of the plan in pay 
                                status to act as a retiree 
                                representative. The retiree 
                                representative shall advocate 
                                for the interests of the 
                                retired and deferred vested 
                                participants and beneficiaries 
                                of the plan throughout the 
                                suspension approval process.
                                  (II) Reasonable expenses from 
                                plan.--The plan shall provide 
                                for reasonable expenses by the 
                                retiree representative, 
                                including reasonable legal and 
                                actuarial support, commensurate 
                                with the plan's size and funded 
                                status.
                                  (III) Special rule relating 
                                to fiduciary status.--Duties 
                                performed pursuant to subclause 
                                (I) shall not be subject to 
                                section 4975. The preceding 
                                sentence shall not apply to 
                                those duties associated with an 
                                application to suspend benefits 
                                pursuant to subparagraph (G) 
                                that are performed by the 
                                retiree representative who is 
                                also a plan trustee.
                  (C) Conditions for suspensions.--The plan 
                sponsor of a plan in critical and declining 
                status for a plan year may suspend benefits 
                only if the following conditions are met:
                          (i) Taking into account the proposed 
                        suspensions of benefits (and, if 
                        applicable, a proposed partition of the 
                        plan under section 4233 of the Employee 
                        Retirement Income Security Act of 
                        1974), the plan actuary certifies that 
                        the plan is projected to avoid 
                        insolvency within the meaning of 
                        section 418E, assuming the suspensions 
                        of benefits continue until the 
                        suspensions of benefits expire by their 
                        own terms or if no such expiration date 
                        is set, indefinitely.
                          (ii) The plan sponsor determines, in 
                        a written record to be maintained 
                        throughout the period of the benefit 
                        suspension, that the plan is still 
                        projected to become insolvent unless 
                        benefits are suspended under this 
                        paragraph, although all reasonable 
                        measures to avoid insolvency have been 
                        taken (and continue to be taken during 
                        the period of the benefit suspension). 
                        In its determination, the plan sponsor 
                        may take into account factors including 
                        the following:
                                  (I) Current and past 
                                contribution levels.
                                  (II) Levels of benefit 
                                accruals (including any prior 
                                reductions in the rate of 
                                benefit accruals).
                                  (III) Prior reductions (if 
                                any) of adjustable benefits.
                                  (IV) Prior suspensions (if 
                                any) of benefits under this 
                                subsection.
                                  (V) The impact on plan 
                                solvency of the subsidies and 
                                ancillary benefits available to 
                                active participants.
                                  (VI) Compensation levels of 
                                active participants relative to 
                                employees in the participants' 
                                industry generally.
                                  (VII) Competitive and other 
                                economic factors facing 
                                contributing employers.
                                  (VIII) The impact of benefit 
                                and contribution levels on 
                                retaining active participants 
                                and bargaining groups under the 
                                plan.
                                  (IX) The impact of past and 
                                anticipated contribution 
                                increases under the plan on 
                                employer attrition and 
                                retention levels.
                                  (X) Measures undertaken by 
                                the plan sponsor to retain or 
                                attract contributing employers.
                  (D) Limitations on suspensions.--Any 
                suspensions of benefits made by a plan sponsor 
                pursuant to this paragraph shall be subject to 
                the following limitations:
                          (i) The monthly benefit of any 
                        participant or beneficiary may not be 
                        reduced below 110 percent of the 
                        monthly benefit which is guaranteed by 
                        the Pension Benefit Guaranty 
                        Corporation under section 4022A of the 
                        Employee Retirement Income Security Act 
                        of 1974 on the date of the suspension.
                          (ii)(I) In the case of a participant 
                        or beneficiary who has attained 75 
                        years of age as of the effective date 
                        of the suspension, not more than the 
                        applicable percentage of the maximum 
                        suspendable benefits of such 
                        participant or beneficiary may be 
                        suspended under this paragraph.
                                  (II) For purposes of 
                                subclause (I), the maximum 
                                suspendable benefits of a 
                                participant or beneficiary is 
                                the portion of the benefits of 
                                such participant or beneficiary 
                                that would be suspended 
                                pursuant to this paragraph 
                                without regard to this clause;
                                  (III) For purposes of 
                                subclause (I), the applicable 
                                percentage is a percentage 
                                equal to the quotient obtained 
                                by dividing--
                                  (aa) the number of months 
                                during the period beginning 
                                with the month after the month 
                                in which occurs the effective 
                                date of the suspension and 
                                ending with the month during 
                                which the participant or 
                                beneficiary attains the age of 
                                80, by
                                  (bb) 60 months.
                          (iii) No benefits based on disability 
                        (as defined under the plan) may be 
                        suspended under this paragraph.
                          (iv) Any suspensions of benefits, in 
                        the aggregate (and, if applicable, 
                        considered in combination with a 
                        partition of the plan under section 
                        4233 of the Employee Retirement Income 
                        Security Act of 1974), shall be 
                        reasonably estimated to achieve, but 
                        not materially exceed, the level that 
                        is necessary to avoid insolvency.
                          (v) In any case in which a suspension 
                        of benefits with respect to a plan is 
                        made in combination with a partition of 
                        the plan under section 4233 of the 
                        Employee Retirement Income Security Act 
                        of 1974, the suspension of benefits may 
                        not take effect prior to the effective 
                        date of such partition.
                          (vi) Any suspensions of benefits 
                        shall be equitably distributed across 
                        the participant and beneficiary 
                        population, taking into account 
                        factors, with respect to participants 
                        and beneficiaries and their benefits, 
                        that may include one or more of the 
                        following:
                                  (I) Age and life expectancy.
                                  (II) Length of time in pay 
                                status.
                                  (III) Amount of benefit.
                                  (IV) Type of benefit: 
                                survivor, normal retirement, 
                                early retirement.
                                  (V) Extent to which 
                                participant or beneficiary is 
                                receiving a subsidized benefit.
                                  (VI) Extent to which 
                                participant or beneficiary has 
                                received post-retirement 
                                benefit increases.
                                  (VII) History of benefit 
                                increases and reductions.
                                  (VIII) Years to retirement 
                                for active employees.
                                  (IX) Any discrepancies 
                                between active and retiree 
                                benefits.
                                  (X) Extent to which active 
                                participants are reasonably 
                                likely to withdraw support for 
                                the plan, accelerating employer 
                                withdrawals from the plan and 
                                increasing the risk of 
                                additional benefit reductions 
                                for participants in and out of 
                                pay status.
                                  (XI) Extent to which benefits 
                                are attributed to service with 
                                an employer that failed to pay 
                                its full withdrawal liability.
                          (vii) In the case of a plan that 
                        includes the benefits described in 
                        clause (III), benefits suspended under 
                        this paragraph shall--
                                  (I) first, be applied to the 
                                maximum extent permissible to 
                                benefits attributable to a 
                                participant's service for an 
                                employer which withdrew from 
                                the plan and failed to pay (or 
                                is delinquent with respect to 
                                paying) the full amount of its 
                                withdrawal liability under 
                                section 4201(b)(1) of the 
                                Employee Retirement Income 
                                Security Act of 1974 or an 
                                agreement with the plan,
                                  (II) second, except as 
                                provided by subclause (III), be 
                                applied to all other benefits 
                                that may be suspended under 
                                this paragraph, and
                                  (III) third, be applied to 
                                benefits under a plan that are 
                                directly attributable to a 
                                participant's service with any 
                                employer which has, prior to 
                                the date of enactment of the 
                                Multiemployer Pension Reform 
                                Act of 2014--
                                          (aa) withdrawn from 
                                        the plan in a complete 
                                        withdrawal under 
                                        section 4203 of the 
                                        Employee Retirement 
                                        Income Security Act of 
                                        1974 and has paid the 
                                        full amount of the 
                                        employer's withdrawal 
                                        liability under section 
                                        4201(b)(1) of such Act 
                                        or an agreement with 
                                        the plan, and
                                          (bb) pursuant to a 
                                        collective bargaining 
                                        agreement, assumed 
                                        liability for providing 
                                        benefits to 
                                        participants and 
                                        beneficiaries of the 
                                        plan under a separate, 
                                        single-employer plan 
                                        sponsored by the 
                                        employer, in an amount 
                                        equal to any amount of 
                                        benefits for such 
                                        participants and 
                                        beneficiaries reduced 
                                        as a result of the 
                                        financial status of the 
                                        plan.
                  (E) Benefit improvements.--
                          (i) In general.--The plan sponsor 
                        may, in its sole discretion, provide 
                        benefit improvements while any 
                        suspension of benefits under the plan 
                        remains in effect, except that the plan 
                        sponsor may not increase the 
                        liabilities of the plan by reason of 
                        any benefit improvement for any 
                        participant or beneficiary not in pay 
                        status by the first day of the plan 
                        year for which the benefit improvement 
                        takes effect, unless--
                                  (I) such action is 
                                accompanied by equitable 
                                benefit improvements in 
                                accordance with clause (ii) for 
                                all participants and 
                                beneficiaries whose benefit 
                                commencement dates were before 
                                the first day of the plan year 
                                for which the benefit 
                                improvement for such 
                                participant or beneficiary not 
                                in pay status took effect; and
                                  (II) the plan actuary 
                                certifies that after taking 
                                into account such benefits 
                                improvements the plan is 
                                projected to avoid insolvency 
                                indefinitely under section 
                                418E.
                          (ii) Equitable distribution of 
                        benefit improvements.--
                                  (I) Limitation.--The 
                                projected value of the total 
                                liabilities for benefit 
                                improvements for participants 
                                and beneficiaries not in pay 
                                status by the date of the first 
                                day of the plan year in which 
                                the benefit improvements are 
                                proposed to take effect, as 
                                determined as of such date, may 
                                not exceed the projected value 
                                of the liabilities arising from 
                                benefit improvements for 
                                participants and beneficiaries 
                                with benefit commencement dates 
                                prior to the first day of such 
                                plan year, as so determined.
                                  (II) Equitable distribution 
                                of benefits.--The plan sponsor 
                                shall equitably distribute any 
                                increase in total liabilities 
                                for benefit improvements in 
                                clause (i) to some or all of 
                                the participants and 
                                beneficiaries whose benefit 
                                commencement date is before the 
                                date of the first day of the 
                                plan year in which the benefit 
                                improvements are proposed to 
                                take effect, taking into 
                                account the relevant factors 
                                described in subparagraph 
                                (D)(vi) and the extent to which 
                                the benefits of the 
                                participants and beneficiaries 
                                were suspended.
                          (iii) Special rule for resumptions of 
                        benefits only for participants in pay 
                        status.--The plan sponsor may increase 
                        liabilities of the plan through a 
                        resumption of benefits for participants 
                        and beneficiaries in pay status only if 
                        the plan sponsor equitably distributes 
                        the value of resumed benefits to some 
                        or all of the participants and 
                        beneficiaries in pay status, taking 
                        into account the relevant factors 
                        described in subparagraph (D)(vi).
                          (iv) Special rule for certain benefit 
                        increases.--This subparagraph shall not 
                        apply to a resumption of suspended 
                        benefits or plan amendment which 
                        increases liabilities with respect to 
                        participants and beneficiaries not in 
                        pay status by the first day of the plan 
                        year in which the benefit improvements 
                        took effect which--
                                  (I) the Secretary of the 
                                Treasury, in consultation with 
                                the Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor, determines to be 
                                reasonable and which provides 
                                for only de minimis increases 
                                in the liabilities of the plan, 
                                or
                                  (II) is required as a 
                                condition of qualification 
                                under part I of subchapter D of 
                                chapter 1 of subtitle A or to 
                                comply with other applicable 
                                law, as determined by the 
                                Secretary of the Treasury.
                          (v) Additional limitations.--Except 
                        for resumptions of suspended benefits 
                        described in clause (iii), the 
                        limitations on benefit improvements 
                        while a suspension of benefits is in 
                        effect under this paragraph shall be in 
                        addition to any other applicable 
                        limitations on increases in benefits 
                        imposed on a plan.
                          (vi) Definition of benefit 
                        improvement.--For purposes of this 
                        subparagraph, the term ``benefit 
                        improvement'' means, with respect to a 
                        plan, a resumption of suspended 
                        benefits, an increase in benefits, an 
                        increase in the rate at which benefits 
                        accrue, or an increase in the rate at 
                        which benefits become nonforfeitable 
                        under the plan.
                  (F) Notice requirements.--
                          (i) In general.--No suspension of 
                        benefits may be made pursuant to this 
                        paragraph unless notice of such 
                        proposed suspension has been given by 
                        the plan sponsor concurrently with an 
                        application for approval of such 
                        suspension submitted under subparagraph 
                        (G) to the Secretary of the Treasury 
                        to--
                                  (I) such plan participants 
                                and beneficiaries who may be 
                                contacted by reasonable 
                                efforts,
                                  (II) each employer who has an 
                                obligation to contribute 
                                (within the meaning of section 
                                4212(a) of the Employee 
                                Retirement Income Security Act 
                                of 1974) under the plan, and
                                  (III) each employee 
                                organization which, for 
                                purposes of collective 
                                bargaining, represents plan 
                                participants employed by such 
                                an employer.
                          (ii) Content of notice.--The notice 
                        under clause (i) shall contain--
                                  (I) sufficient information to 
                                enable participants and 
                                beneficiaries to understand the 
                                effect of any suspensions of 
                                benefits, including an 
                                individualized estimate (on an 
                                annual or monthly basis) of 
                                such effect on each participant 
                                or beneficiary,
                                  (II) a description of the 
                                factors considered by the plan 
                                sponsor in designing the 
                                benefit suspensions,
                                  (III) a statement that the 
                                application for approval of any 
                                suspension of benefits shall be 
                                available on the website of the 
                                Department of the Treasury and 
                                that comments on such 
                                application will be accepted,
                                  (IV) information as to the 
                                rights and remedies of plan 
                                participants and beneficiaries,
                                  (V) if applicable, a 
                                statement describing the 
                                appointment of a retiree 
                                representative, the date of 
                                appointment of such 
                                representative, identifying 
                                information about the retiree 
                                representative (including 
                                whether the representative is a 
                                plan trustee), and how to 
                                contact such representative, 
                                and
                                  (VI) information on how to 
                                contact the Department of the 
                                Treasury for further 
                                information and assistance 
                                where appropriate.
                          (iii) Form and manner.--Any notice 
                        under clause (i)--
                                  (I) shall be provided in a 
                                form and manner prescribed in 
                                guidance by the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, 
                                notwithstanding any other 
                                provision of law,
                                  (II) shall be written in a 
                                manner so as to be understood 
                                by the average plan 
                                participant, and
                                  (III) may be provided in 
                                written, electronic, or other 
                                appropriate form to the extent 
                                such form is reasonably 
                                accessible to persons to whom 
                                the notice is required to be 
                                provided.
                          (iv) Other notice requirement.--Any 
                        notice provided under clause (i) shall 
                        fulfill the requirement for notice of a 
                        significant reduction in benefits 
                        described in section 4980F.
                          (v) Model notice.--The Secretary of 
                        the Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall in 
                        the guidance prescribed under clause 
                        (iii)(I) establish a model notice that 
                        a plan sponsor may use to meet the 
                        requirements of this subparagraph.
                  (G) Approval process by the secretary of the 
                treasury in consultation with the pension 
                benefit guaranty corporation and the secretary 
                of labor.--
                          (i) In general.--The plan sponsor of 
                        a plan in critical and declining status 
                        for a plan year that seeks to suspend 
                        benefits must submit an application to 
                        the Secretary of the Treasury for 
                        approval of the suspensions of 
                        benefits. If the plan sponsor submits 
                        an application for approval of the 
                        suspensions, the Secretary of the 
                        Treasury shall approve, in consultation 
                        with the Pension Benefit Guaranty 
                        Corporation and the Secretary of Labor, 
                        the application upon finding that the 
                        plan is eligible for the suspensions 
                        and has satisfied the criteria of 
                        subparagraphs (C), (D), (E), and (F).
                          (ii) Solicitation of comments.--Not 
                        later than 30 days after receipt of the 
                        application under clause (i), the 
                        Secretary of the Treasury, in 
                        consultation with the Pension Benefit 
                        Guaranty Corporation and the Secretary 
                        of Labor, shall publish a notice in the 
                        Federal Register soliciting comments 
                        from contributing employers, employee 
                        organizations, and participants and 
                        beneficiaries of the plan for which an 
                        application was made and other 
                        interested parties. The application for 
                        approval of the suspension of benefits 
                        shall be published on the website of 
                        the Department of the Treasury.
                          (iii) Required action; deemed 
                        approval.--The Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        approve or deny any application for 
                        suspensions of benefits under this 
                        paragraph within 225 days after the 
                        submission of such application. An 
                        application for suspension of benefits 
                        shall be deemed approved unless, within 
                        such 225 days, the Secretary of the 
                        Treasury notifies the plan sponsor that 
                        it has failed to satisfy one or more of 
                        the criteria described in this 
                        paragraph. If the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, rejects a 
                        plan sponsor's application, the 
                        Secretary of the Treasury shall provide 
                        notice to the plan sponsor detailing 
                        the specific reasons for the rejection, 
                        including reference to the specific 
                        requirement not satisfied. Approval or 
                        denial by the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, of an 
                        application shall be treated as final 
                        agency action for purposes of section 
                        704 of title 5, United States Code.
                          (iv) Agency review.--In evaluating 
                        whether the plan sponsor has met the 
                        criteria specified in clause (ii) of 
                        subparagraph (C), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        review the plan sponsor's consideration 
                        of factors under such clause.
                          (v) Standard for accepting plan 
                        sponsor determinations.--In evaluating 
                        the plan sponsor's application, the 
                        Secretary of the Treasury shall accept 
                        the plan sponsor's determinations 
                        unless it concludes, in consultation 
                        with the Pension Benefit Guaranty 
                        Corporation and the Secretary of Labor, 
                        that the plan sponsor's determinations 
                        were clearly erroneous.
                  (H) Participant ratification process.--
                          (i) In general.--No suspension of 
                        benefits may take effect pursuant to 
                        this paragraph prior to a vote of the 
                        participants of the plan with respect 
                        to the suspension.
                          (ii) Administration of vote.--Not 
                        later than 30 days after approval of 
                        the suspension by the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, under 
                        subparagraph (G), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        administer a vote of participants and 
                        beneficiaries of the plan. Except as 
                        provided in clause (v), the suspension 
                        shall go into effect following the vote 
                        unless a majority of all participants 
                        and beneficiaries of the plan vote to 
                        reject the suspension. The plan sponsor 
                        may submit a new suspension application 
                        to the Secretary of the Treasury for 
                        approval in any case in which a 
                        suspension is prohibited from taking 
                        effect pursuant to a vote under this 
                        subparagraph.
                          (iii) Ballots.--The plan sponsor 
                        shall provide a ballot for the vote 
                        (subject to approval by the Secretary 
                        of the Treasury, in consultation with 
                        the Pension Benefit Guaranty 
                        Corporation and the Secretary of Labor) 
                        that includes the following:
                                  (I) A statement from the plan 
                                sponsor in support of the 
                                suspension.
                                  (II) A statement in 
                                opposition to the suspension 
                                compiled from comments received 
                                pursuant to subparagraph 
                                (G)(ii).
                                  (III) A statement that the 
                                suspension has been approved by 
                                the Secretary of the Treasury, 
                                in consultation with the 
                                Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor.
                                  (IV) A statement that the 
                                plan sponsor has determined 
                                that the plan will become 
                                insolvent unless the suspension 
                                takes effect.
                                  (V) A statement that 
                                insolvency of the plan could 
                                result in benefits lower than 
                                benefits paid under the 
                                suspension.
                                  (VI) A statement that 
                                insolvency of the Pension 
                                Benefit Guaranty Corporation 
                                would result in benefits lower 
                                than benefits paid in the case 
                                of plan insolvency.
                          (iv) Communication by plan sponsor.--
                        It is the sense of Congress that, 
                        depending on the size and resources of 
                        the plan and geographic distribution of 
                        the plan's participants, the plan 
                        sponsor should take such steps as may 
                        be necessary to inform participants 
                        about proposed benefit suspensions 
                        through in-person meetings, telephone 
                        or internet-based communications, 
                        mailed information, or by other means.
                          (v) Systemically important plans.--
                                  (I) In general.--Not later 
                                than 14 days after a vote under 
                                this subparagraph rejecting a 
                                suspension, the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, shall 
                                determine whether the plan is a 
                                systemically important plan. If 
                                the Secretary of the Treasury, 
                                in consultation with the 
                                Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor, determines that the 
                                plan is a systemically 
                                important plan, not later than 
                                the end of the 90-day period 
                                beginning on the date the 
                                results of the vote are 
                                certified, the Secretary of the 
                                Treasury shall, notwithstanding 
                                such adverse vote--
                                          (aa) permit the 
                                        implementation of the 
                                        suspension proposed by 
                                        the plan sponsor; or
                                          (bb) permit the 
                                        implementation of a 
                                        modification by the 
                                        Secretary of the 
                                        Treasury, in 
                                        consultation with the 
                                        Pension Benefit 
                                        Guaranty Corporation 
                                        and the Secretary of 
                                        Labor, of such 
                                        suspension (so long as 
                                        the plan is projected 
                                        to avoid insolvency 
                                        within the meaning of 
                                        section 4245 of the 
                                        Employee Retirement 
                                        Income Security Act of 
                                        1974 under such 
                                        modification).
                                  (II) Recommendations.--Not 
                                later than 30 days after a 
                                determination by the Secretary 
                                of the Treasury, in 
                                consultation with the Pension 
                                Benefit Guaranty Corporation 
                                and the Secretary of Labor, 
                                that the plan is systemically 
                                important, the Participant and 
                                Plan Sponsor Advocate selected 
                                under section 4004 of the 
                                Employee Retirement Income 
                                Security Act of 1974 may submit 
                                recommendations to the 
                                Secretary of the Treasury with 
                                respect to the suspension or 
                                any revisions to the 
                                suspension.
                                  (III) Systemically important 
                                plan defined.--
                                          (aa) In general.--For 
                                        purposes of this 
                                        subparagraph, a 
                                        systemically important 
                                        plan is a plan with 
                                        respect to which the 
                                        Pension Benefit 
                                        Guaranty Corporation 
                                        projects the present 
                                        value of projected 
                                        financial assistance 
                                        payments exceeds 
                                        $1,000,000,000 if 
                                        suspensions are not 
                                        implemented.
                                          (bb) Indexing.--For 
                                        calendar years 
                                        beginning after 2015, 
                                        there shall be 
                                        substituted for the 
                                        dollar amount specified 
                                        in item (aa) an amount 
                                        equal to the product of 
                                        such dollar amount and 
                                        a fraction, the 
                                        numerator of which is 
                                        the contribution and 
                                        benefit base 
                                        (determined under 
                                        section 230 of the 
                                        Social Security Act) 
                                        for the preceding 
                                        calendar year and the 
                                        denominator of which is 
                                        such contribution and 
                                        benefit base for 
                                        calendar year 2014. If 
                                        the amount otherwise 
                                        determined under this 
                                        item is not a multiple 
                                        of $1,000,000, such 
                                        amount shall be rounded 
                                        to the next lowest 
                                        multiple of $1,000,000.
                          (vi) Final authorization to 
                        suspend.--In any case in which a 
                        suspension goes into effect following a 
                        vote pursuant to clause (ii) (or 
                        following a determination under clause 
                        (v) that the plan is a systemically 
                        important plan), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall issue 
                        a final authorization to suspend with 
                        respect to the suspension not later 
                        than 7 days after such vote (or, in the 
                        case of a suspension that goes into 
                        effect under clause (v), at a time 
                        sufficient to allow the implementation 
                        of the suspension prior to the end of 
                        the 90-day period described in clause 
                        (v)(I)).
                  (I) Judicial review.--
                          (i) Denial of application.--An action 
                        by the plan sponsor challenging the 
                        denial of an application for suspension 
                        of benefits by the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, may only be 
                        brought following such denial.
                          (ii) Approval of suspension of 
                        benefits.--
                                  (I) Timing of action.--An 
                                action challenging a suspension 
                                of benefits under this 
                                paragraph may only be brought 
                                following a final authorization 
                                to suspend by the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, under 
                                subparagraph (H)(vi).
                                  (II) Standards of review.--
                                          (aa) In general.--A 
                                        court shall review an 
                                        action challenging a 
                                        suspension of benefits 
                                        under this paragraph in 
                                        accordance with section 
                                        706 of title 5, United 
                                        States Code.
                                          (bb) Temporary 
                                        injunction.--A court 
                                        reviewing an action 
                                        challenging a 
                                        suspension of benefits 
                                        under this paragraph 
                                        may not grant a 
                                        temporary injunction 
                                        with respect to such 
                                        suspension unless the 
                                        court finds a clear and 
                                        convincing likelihood 
                                        that the plaintiff will 
                                        prevail on the merits 
                                        of the case.
                          (iii) Restricted cause of action.--A 
                        participant or beneficiary affected by 
                        a benefit suspension under this 
                        paragraph shall not have a cause of 
                        action under this title.
                          (iv) Limitation on action to suspend 
                        benefits.--No action challenging a 
                        suspension of benefits following the 
                        final authorization to suspend or the 
                        denial of an application for suspension 
                        of benefits pursuant to this paragraph 
                        may be brought after one year after the 
                        earliest date on which the plaintiff 
                        acquired or should have acquired actual 
                        knowledge of the existence of such 
                        cause of action.
                  (J) Special rule for emergence from critical 
                status.--A plan certified to be in critical and 
                declining status pursuant to projections made 
                under subsection (b)(3) for which a suspension 
                of benefits has been made by the plan sponsor 
                pursuant to this paragraph shall not emerge 
                from critical status under paragraph (4)(B), 
                until such time as--
                          (i) the plan is no longer certified 
                        to be in critical or endangered status 
                        under paragraphs (1) and (2) of 
                        subsection (b), and
                          (ii) the plan is projected to avoid 
                        insolvency under section 418E.
  (f) Rules for operation of plan during adoption and 
rehabilitation period.--
          (1) Compliance with rehabilitation plan.--
                  (A) In general.--A plan may not be amended 
                after the date of the adoption of a 
                rehabilitation plan under subsection (e) so as 
                to be inconsistent with the rehabilitation 
                plan.
                  (B) Special rules for benefit increases.--A 
                plan may not be amended after the date of the 
                adoption of a rehabilitation plan under 
                subsection (e) so as to increase benefits, 
                including future benefit accruals, unless the 
                plan actuary certifies that such increase is 
                paid for out of additional contributions not 
                contemplated by the rehabilitation plan, and, 
                after taking into account the benefit increase, 
                the multiemployer plan still is reasonably 
                expected to emerge from critical status by the 
                end of the rehabilitation period on the 
                schedule contemplated in the rehabilitation 
                plan.
          (2) Restriction on lump sums and similar benefits.--
                  (A) In general.--Effective on the date the 
                notice of certification of the plan's critical 
                status for the initial critical year under 
                subsection (b)(3)(D) is sent, and 
                notwithstanding section 411(d)(6), the plan 
                shall not pay--
                          (i) any payment, in excess of the 
                        monthly amount paid under a single life 
                        annuity (plus any social security 
                        supplements described in the last 
                        sentence of section 411(a)(9)), to a 
                        participant or beneficiary whose 
                        annuity starting date (as defined in 
                        section 417(f)(2)) occurs after the 
                        date such notice is sent,
                          (ii) any payment for the purchase of 
                        an irrevocable commitment from an 
                        insurer to pay benefits, and
                          (iii) any other payment specified by 
                        the Secretary by regulations.
                  (B) Exception.--Subparagraph (A) shall not 
                apply to a benefit which under section 
                411(a)(11) may be immediately distributed 
                without the consent of the participant or to 
                any makeup payment in the case of a retroactive 
                annuity starting date or any similar payment of 
                benefits owed with respect to a prior period.
          (3) Special rules for plan adoption period.--During 
        the period beginning on the date of the certification 
        under subsection (b)(3)(A) for the initial critical 
        year and ending on the date of the adoption of a 
        rehabilitation plan--
                  (A) the plan sponsor may not accept a 
                collective bargaining agreement or 
                participation agreement with respect to the 
                multiemployer plan that provides for--
                          (i) a reduction in the level of 
                        contributions for any participants,
                          (ii) a suspension of contributions 
                        with respect to any period of service, 
                        or
                          (iii) any new direct or indirect 
                        exclusion of younger or newly hired 
                        employees from plan participation, and
                  (B) no amendment of the plan which increases 
                the liabilities of the plan by reason of any 
                increase in benefits, any change in the accrual 
                of benefits, or any change in the rate at which 
                benefits become nonforfeitable under the plan 
                may be adopted unless the amendment is required 
                as a condition of qualification under part I of 
                subchapter D of chapter 1 or to comply with 
                other applicable law.
  (g) Adjustments disregarded in withdrawal liability 
determination.--
          (1) Benefit reduction.--Any benefit reductions under 
        subsection (e)(8) or (f), or benefit reductions or 
        suspensions while in critical and declining status 
        under subsection (e)(9), unless the withdrawal occurs 
        more than ten years after the effective date of a 
        benefit suspension by a plan in critical and declining 
        status, shall be disregarded in determining a plan's 
        unfunded vested benefits for purposes of determining an 
        employer's withdrawal liability under section 4201 of 
        the Employee Retirement Income Security Act of 1974.
          (2) Surcharges.--Any surcharges under subsection 
        (e)(7) shall be disregarded in determining the 
        allocation of unfunded vested benefits to an employer 
        under section 4211 of the Employee Retirement Income 
        Security Act of 1974 and in determining the highest 
        contribution rate under section 4219(c) of such Act, 
        except for purposes of determining the unfunded vested 
        benefits attributable to an employer under section 
        4211(c)(4) of such Act or a comparable method approved 
        under section 4211(c)(5) of such Act.
          (3) Contribution increases required by funding 
        improvement or rehabilitation plan.--
                  (A) In general.--Any increase in the 
                contribution rate (or other increase in 
                contribution requirements unless due to 
                increased levels of work, employment, or 
                periods for which compensation is provided) 
                that is required or made in order to enable the 
                plan to meet the requirement of the funding 
                improvement plan or rehabilitation plan shall 
                be disregarded in determining the allocation of 
                unfunded vested benefits to an employer under 
                section 4211 of such Act and in determining the 
                highest contribution rate under section 4219(c) 
                of such Act, except for purposes of determining 
                the unfunded vested benefits attributable to an 
                employer under section 4211(c)(4) of such Act 
                or a comparable method approved under section 
                4211(c)(5) of such Act.
                  (B) Special rules.--For purposes of this 
                paragraph, any increase in the contribution 
                rate (or other increase in contribution 
                requirements) shall be deemed to be required or 
                made in order to enable the plan to meet the 
                requirement of the funding improvement plan or 
                rehabilitation plan except for increases in 
                contribution requirements due to increased 
                levels of work, employment, or periods for 
                which compensation is provided or additional 
                contributions are used to provide an increase 
                in benefits, including an increase in future 
                benefit accruals, permitted by subsection 
                (d)(1)(B) or (f)(1)(B).
          (4) Emergence from endangered or critical status.--In 
        the case of increases in the contribution rate (or 
        other increases in contribution requirements unless due 
        to increased levels of work, employment, or periods for 
        which compensation is provided) disregarded pursuant to 
        paragraph (3), this subsection shall cease to apply as 
        of the expiration date of the collective bargaining 
        agreement in effect when the plan emerges from 
        endangered or critical status. Notwithstanding the 
        preceding sentence, once the plan emerges from critical 
        or endangered status, increases in the contribution 
        rate disregarded pursuant to paragraph (3) shall 
        continue to be disregarded in determining the highest 
        contribution rate under section 4219(c) of such Act for 
        plan years during which the plan was in endangered or 
        critical status.
          (5) Simplified calculations.--The Pension Benefit 
        Guaranty Corporation shall prescribe simplified methods 
        for the application of this subsection in determining 
        withdrawal liability and payment amounts under section 
        4219(c) of such Act.
  (h) Expedited resolution of plan sponsor decisions.--If, 
within 60 days of the due date for adoption of a funding 
improvement plan under subsection (c) or a rehabilitation plan 
under subsection (e), the plan sponsor of a plan in endangered 
status or a plan in critical status has not agreed on a funding 
improvement plan or rehabilitation plan, then any member of the 
board or group that constitutes the plan sponsor may require 
that the plan sponsor enter into an expedited dispute 
resolution procedure for the development and adoption of a 
funding improvement plan or rehabilitation plan.
  (i) Nonbargained participation.--
          (1) Both bargained and nonbargained employee-
        participants.--In the case of an employer that 
        contributes to a multiemployer plan with respect to 
        both employees who are covered by one or more 
        collective bargaining agreements and employees who are 
        not so covered, if the plan is in endangered status or 
        in critical status, benefits of and contributions for 
        the nonbargained employees, including surcharges on 
        those contributions, shall be determined as if those 
        nonbargained employees were covered under the first to 
        expire of the employer's collective bargaining 
        agreements in effect when the plan entered endangered 
        or critical status.
          (2) Nonbargained employees only.--In the case of an 
        employer that contributes to a multiemployer plan only 
        with respect to employees who are not covered by a 
        collective bargaining agreement, this section shall be 
        applied as if the employer were the bargaining party, 
        and its participation agreement with the plan were a 
        collective bargaining agreement with a term ending on 
        the first day of the plan year beginning after the 
        employer is provided the schedule or schedules 
        described in subsections (c) and (e).
  (j) Definitions; actuarial method.--For purposes of this 
section--
          (1) Bargaining party.--The term ``bargaining party'' 
        means--
                  (A)(i) except as provided in clause (ii), an 
                employer who has an obligation to contribute 
                under the plan; or
                          (ii) in the case of a plan described 
                        under section 404(c), or a continuation 
                        of such a plan, the association of 
                        employers that is the employer settlor 
                        of the plan; and
                  (B) an employee organization which, for 
                purposes of collective bargaining, represents 
                plan participants employed by an employer who 
                has an obligation to contribute under the plan.
          (2) Funded percentage.--The term ``funded 
        percentage'' means the percentage equal to a fraction--
                  (A) the numerator of which is the value of 
                the plan's assets, as determined under section 
                431(c)(2), and
                  (B) the denominator of which is the accrued 
                liability of the plan, determined using 
                actuarial assumptions described in section 
                431(c)(3).
          (3) Accumulated funding deficiency.--The term 
        ``accumulated funding deficiency'' has the meaning 
        given such term in section 431(a).
          (4) Active participant.--The term ``active 
        participant'' means, in connection with a multiemployer 
        plan, a participant who is in covered service under the 
        plan.
          (5) Inactive participant.--The term ``inactive 
        participant'' means, in connection with a multiemployer 
        plan, a participant, or the beneficiary or alternate 
        payee of a participant, who--
                  (A) is not in covered service under the plan, 
                and
                  (B) is in pay status under the plan or has a 
                nonforfeitable right to benefits under the 
                plan.
          (6) Pay status.--A person is in pay status under a 
        multiemployer plan if--
                  (A) at any time during the current plan year, 
                such person is a participant or beneficiary 
                under the plan and is paid an early, late, 
                normal, or disability retirement benefit under 
                the plan (or a death benefit under the plan 
                related to a retirement benefit), or
                  (B) to the extent provided in regulations of 
                the Secretary, such person is entitled to such 
                a benefit under the plan.
          (7) Obligation to contribute.--The term ``obligation 
        to contribute'' has the meaning given such term under 
        section 4212(a) of the Employee Retirement Income 
        Security Act of 1974.
          (8) Actuarial method.--Notwithstanding any other 
        provision of this section, the actuary's determinations 
        with respect to a plan's normal cost, actuarial accrued 
        liability, and improvements in a plan's funded 
        percentage under this section shall be based upon the 
        unit credit funding method (whether or not that method 
        is used for the plan's actuarial valuation).
          (9) Plan sponsor.--For purposes of this section, 
        section 431, and section 4971(g):
                  (A) In general.--The term ``plan sponsor'' 
                means, with respect to any multiemployer plan, 
                the association, committee, joint board of 
                trustees, or other similar group of 
                representatives of the parties who establish or 
                maintain the plan.
                  (B) Special rule for section 404(c) plans.--
                In the case of a plan described in section 
                404(c) (or a continuation of such plan), such 
                term means the bargaining parties described in 
                paragraph (1).
          (10) Benefit commencement date.--The term ``benefit 
        commencement date'' means the annuity starting date (or 
        in the case of a retroactive annuity starting date, the 
        date on which benefit payments begin).
  (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 
                of 2019 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 of 2019 shall not be 
                taken into account as plan assets 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 taken into account as unfunded vested 
                benefits in determining such withdrawal 
                liability.
          (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 of 
        2019--
                  (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.

           *       *       *       *       *       *       *


Subchapter F--EXEMPT ORGANIZATIONS

           *       *       *       *       *       *       *


PART III--TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS

           *       *       *       *       *       *       *


SEC. 514. UNRELATED DEBT-FINANCED INCOME.

  (a) Unrelated debt-financed income and deductions.--In 
computing under section 512 the unrelated business taxable 
income for any taxable year--
          (1) Percentage of income taken into account.--There 
        shall be included with respect to each debt-financed 
        property as an item of gross income derived from an 
        unrelated trade or business an amount which is the same 
        percentage (but not in excess of 100 percent) of the 
        total gross income derived during the taxable year from 
        or on account of such property as (A) the average 
        acquisition indebtedness (as defined in subsection 
        (c)(7)) for the taxable year with respect to the 
        property is of (B) the average amount (determined under 
        regulations prescribed by the Secretary) of the 
        adjusted basis of such property during the period it is 
        held by the organization during such taxable year.
          (2) Percentage of deductions taken into account.--
        There shall be allowed as a deduction with respect to 
        each debt-financed property an amount determined by 
        applying (except as provided in the last sentence of 
        this paragraph) the percentage derived under paragraph 
        (1) to the sum determined under paragraph (3). The 
        percentage derived under this paragraph shall not be 
        applied with respect to the deduction of any capital 
        loss resulting from the carryback or carryover of net 
        capital losses under section 1212.
          (3) Deductions allowable.--The sum referred to in 
        paragraph (2) is the sum of the deductions under this 
        chapter which are directly connected with the debt-
        financed property or the income therefrom, except that 
        if the debt-financed property is of a character which 
        is subject to the allowance for depreciation provided 
        in section 167, the allowance shall be computed only by 
        use of the straight-line method.
  (b) Definition of debt-financed property.--
          (1) In general.--For purposes of this section, the 
        term ``debt-financed property'' means any property 
        which is held to produce income and with respect to 
        which there is an acquisition indebtedness (as defined 
        in subsection (c)) at any time during the taxable year 
        (or, if the property was disposed of during the taxable 
        year, with respect to which there was an acquisition 
        indebtedness at any time during the 12-month period 
        ending with the date of such disposition), except that 
        such term does not include--
                  (A)(i) any property substantially all the use 
                of which is substantially related (aside from 
                the need of the organization for income or 
                funds) to the exercise or performance by such 
                organization of its charitable, educational, or 
                other purpose or function constituting the 
                basis for its exemption under section 501 (or, 
                in the case of an organization described in 
                section 511(a)(2)(B), to the exercise or 
                performance of any purpose or function 
                designated in section 501(c)(3)), or (ii) any 
                property to which clause (i) does not apply, to 
                the extent that its use is so substantially 
                related;
                  (B) except in the case of income excluded 
                under section 512(b)(5), any property to the 
                extent that the income from such property is 
                taken into account in computing the gross 
                income of any unrelated trade or business;
                  (C) any property to the extent that the 
                income from such property is excluded by reason 
                of the provisions of paragraph (7), (8), or (9) 
                of section 512(b) in computing the gross income 
                of any unrelated trade or business;
                  (D) any property to the extent that it is 
                used in any trade or business described in 
                paragraph (1), (2), or (3) of section 513(a); 
                or
                  (E) any property the gain or loss from the 
                sale, exchange, or other disposition of which 
                would be excluded by reason of the provisions 
                of section 512(b)(19) in computing the gross 
                income of any unrelated trade or business.
        For purposes of subparagraph (A), substantially all the 
        use of a property shall be considered to be 
        substantially related to the exercise or performance by 
        an organization of its charitable, educational, or 
        other purpose or function constituting the basis for 
        its exemption under section 501 if such property is 
        real property subject to a lease to a medical clinic 
        entered into primarily for purposes which are 
        substantially related (aside from the need of such 
        organization for income or funds or the use it makes of 
        the rents derived) to the exercise or performance by 
        such organization of its charitable, educational, or 
        other purpose or function constituting the basis for 
        its exemption under section 501.
          (2) Special rule for related uses.--For purposes of 
        applying paragraphs (1) (A), (C), and (D), the use of 
        any property by an exempt organization which is related 
        to an organization shall be treated as use by such 
        organization.
          (3) Special rules when land is acquired for exempt 
        use within 10 years.--
                  (A) Neighborhood land.--If an organization 
                acquires real property for the principal 
                purpose of using the land (commencing within 10 
                years of the time of acquisition) in the manner 
                described in paragraph (1)(A) and at the time 
                of acquisition the property is in the 
                neighborhood of other property owned by the 
                organization which is used in such manner, the 
                real property acquired for such future use 
                shall not be treated as debt-financed property 
                so long as the organization does not abandon 
                its intent to so use the land within the 10-
                year period. The preceding sentence shall not 
                apply for any period after the expiration of 
                the 10-year period, and shall apply after the 
                first 5 years of the 10-year period only if the 
                organization establishes to the satisfaction of 
                the Secretary that it is reasonably certain 
                that the land will be used in the described 
                manner before the expiration of the 10-year 
                period.
                  (B) Other cases.--If the first sentence of 
                subparagraph (A) is inapplicable only because--
                          (i) the acquired land is not in the 
                        neighborhood referred to in 
                        subparagraph (A), or
                          (ii) the organization (for the period 
                        after the first 5 years of the 10-year 
                        period) is unable to establish to the 
                        satisfaction of the Secretary that it 
                        is reasonably certain that the land 
                        will be used in the manner described in 
                        paragraph (1)(A) before the expiration 
                        of the 10-year period,
                but the land is converted to such use by the 
                organization within the 10-year period, the 
                real property (subject to the provisions of 
                subparagraph (D)) shall not be treated as debt-
                financed property for any period before such 
                conversion. For purposes of this subparagraph, 
                land shall not be treated as used in the manner 
                described in paragraph (1)(A) by reason of the 
                use made of any structure which was on the land 
                when acquired by the organization.
                  (C) Limitations.--Subparagraphs (A) and (B)--
                          (i) shall apply with respect to any 
                        structure on the land when acquired by 
                        the organization, or to the land 
                        occupied by the structure, only if (and 
                        so long as) the intended future use of 
                        the land in the manner described in 
                        paragraph (1)(A) requires that the 
                        structure be demolished or removed in 
                        order to use the land in such manner;
                          (ii) shall not apply to structures 
                        erected on the land after the 
                        acquisition of the land; and
                          (iii) shall not apply to property 
                        subject to a lease which is a business 
                        lease (as defined in this section 
                        immediately before the enactment of the 
                        Tax Reform Act of 1976).
                  (D) Refund of taxes when subparagraph (B) 
                applies.--If an organization for any taxable 
                year has not used land in the manner to satisfy 
                the actual use condition of subparagraph (B) 
                before the time prescribed by law (including 
                extensions thereof) for filing the return for 
                such taxable year, the tax for such year shall 
                be computed without regard to the application 
                of subparagraph (B), but if and when such use 
                condition is satisfied, the provisions of 
                subparagraph (B) shall then be applied to such 
                taxable year. If the actual use condition of 
                subparagraph (B) is satisfied for any taxable 
                year after such time for filing the return, and 
                if credit or refund of any overpayment for the 
                taxable year resulting from the satisfaction of 
                such use condition is prevented at the close of 
                the taxable year in which the use condition is 
                satisfied, by the operation of any law or rule 
                of law (other than chapter 74, relating to 
                closing agreements and compromises), credit or 
                refund of such overpayment may nevertheless be 
                allowed or made if claim therefor is filed 
                before the expiration of 1 year after the close 
                of the taxable year in which the use condition 
                is satisfied.
                  (E) Special rule for churches.--In applying 
                this paragraph to a church or convention or 
                association of churches, in lieu of the 10-year 
                period referred to in subparagraphs (A) and (B) 
                a 15-year period shall be applied, and 
                subparagraphs (A) and (B)(ii) shall apply 
                whether or not the acquired land meets the 
                neighborhood test.
  (c) Acquisition indebtedness.--
          (1) General rule.--For purposes of this section, the 
        term ``acquisition indebtedness'' means, with respect 
        to any debt-financed property, the unpaid amount of--
                  (A) the indebtedness incurred by the 
                organization in acquiring or improving such 
                property;
                  (B) the indebtedness incurred before the 
                acquisition or improvement of such property if 
                such indebtedness would not have been incurred 
                but for such acquisition or improvement; and
                  (C) the indebtedness incurred after the 
                acquisition or improvement of such property if 
                such indebtedness would not have been incurred 
                but for such acquisition or improvement and the 
                incurrence of such indebtedness was reasonably 
                foreseeable at the time of such acquisition or 
                improvement.
          (2) Property acquired subject to mortgage, etc..--For 
        purposes of this subsection--
                  (A) General rule.--Where property (no matter 
                how acquired) is acquired subject to a mortgage 
                or other similar lien, the amount of the 
                indebtedness secured by such mortgage or lien 
                shall be considered as an indebtedness of the 
                organization incurred in acquiring such 
                property even though the organization did not 
                assume or agree to pay such indebtedness.
                  (B) Exceptions.--Where property subject to a 
                mortgage is acquired by an organization by 
                bequest or devise, the indebtedness secured by 
                the mortgage shall not be treated as 
                acquisition indebtedness during a period of 10 
                years following the date of the acquisition. If 
                an organization acquires property by gift 
                subject to a mortgage which was placed on the 
                property more than 5 years before the gift, 
                which property was held by the donor more than 
                5 years before the gift, the indebtedness 
                secured by such mortgage shall not be treated 
                as acquisition indebtedness during a period of 
                10 years following the date of such gift. This 
                subparagraph shall not apply if the 
                organization, in order to acquire the equity in 
                the property by bequest, devise, or gift, 
                assumes and agrees to pay the indebtedness 
                secured by the mortgage, or if the organization 
                makes any payment for the equity in the 
                property owned by the decedent or the donor.
                  (C) Liens for taxes or assessments.--Where 
                State law provides that--
                          (i) a lien for taxes, or
                          (ii) a lien for assessments,
                made by a State or a political subdivision 
                thereof attaches to property prior to the time 
                when such taxes or assessments become due and 
                payable, then such lien shall be treated as 
                similar to a mortgage (within the meaning of 
                subparagraph (A)) but only after such taxes or 
                assessments become due and payable and the 
                organization has had an opportunity to pay such 
                taxes or assessments in accordance with State 
                law.
          (3) Extension of obligations.--For purposes of this 
        section, an extension, renewal, or refinancing of an 
        obligation evidencing a pre-existing indebtedness shall 
        not be treated as the creation of a new indebtedness.
          (4) Indebtedness incurred in performing exempt 
        purpose.--For purposes of this section, the term 
        ``acquisition indebtedness'' does not include 
        indebtedness the incurrence of which is inherent in the 
        performance or exercise of the purpose or function 
        constituting the basis of the organization's exemption, 
        such as the indebtedness incurred by a credit union 
        described in section 501(c)(14) in accepting deposits 
        from its members.
          (5) Annuities.--For purposes of this section, the 
        term ``acquisition indebtedness'' does not include an 
        obligation to pay an annuity which--
                  (A) is the sole consideration (other than a 
                mortgage to which paragraph (2)(B) applies) 
                issued in exchange for property if, at the time 
                of the exchange, the value of the annuity is 
                less than 90 percent of the value of the 
                property received in the exchange,
                  (B) is payable over the life of one 
                individual in being at the time the annuity is 
                issued, or over the lives of two individuals in 
                being at such time, and
                  (C) is payable under a contract which--
                          (i) does not guarantee a minimum 
                        amount of payments or specify a maximum 
                        amount of payments, and
                          (ii) does not provide for any 
                        adjustment of the amount of the annuity 
                        payments by reference to the income 
                        received from the transferred property 
                        or any other property.
          (6) Certain Federal financing.--
                  (A) In general.--For purposes of this 
                section, the term ``acquisition indebtedness'' 
                does not include--
                          (i) an obligation, to the extent that 
                        it is insured by the Federal Housing 
                        Administration, to finance the 
                        purchase, rehabilitation, or 
                        construction of housing for low and 
                        moderate income persons, [or]
                          (ii) indebtedness incurred by a small 
                        business investment company licensed 
                        after the date of the enactment of the 
                        American Jobs Creation Act of 2004 
                        under the Small Business Investment Act 
                        of 1958 if such indebtedness is 
                        evidenced by a debenture--
                                  (I) issued by such company 
                                under section 303(a) of such 
                                Act, and
                                  (II) held or guaranteed by 
                                the Small Business 
                                Administration[.], or
                          (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 of 2019.
                  (B) Limitation.--Subparagraph (A)(ii) shall 
                not apply with respect to any small business 
                investment company during any period that--
                          (i) any organization which is exempt 
                        from tax under this title (other than a 
                        governmental unit) owns more than 25 
                        percent of the capital or profits 
                        interest in such company, or
                          (ii) organizations which are exempt 
                        from tax under this title (including 
                        governmental units other than any 
                        agency or instrumentality of the United 
                        States) own, in the aggregate, 50 
                        percent or more of the capital or 
                        profits interest in such company.
          (7) Average acquisition indebtedness.--For purposes 
        of this section, the term ``average acquisition 
        indebtedness'' for any taxable year with respect to a 
        debt-financed property means the average amount, 
        determined under regulations prescribed by the 
        Secretary of the acquisition indebtedness during the 
        period the property is held by the organization during 
        the taxable year, except that for the purpose of 
        computing the percentage of any gain or loss to be 
        taken into account on a sale or other disposition of 
        debt-financed property, such term means the highest 
        amount of the acquisition indebtedness with respect to 
        such property during the 12-month period ending with 
        the date of the sale or other disposition.
          (8) Securities subject to loans.--For purposes of 
        this section--
                  (A) payments with respect to securities loans 
                (as defined in section 512(a)(5)) shall be 
                deemed to be derived from the securities loaned 
                and not from collateral security or the 
                investment of collateral security from such 
                loans,
                  (B) any deductions which are directly 
                connected with collateral security for such 
                loan, or with the investment of collateral 
                security, shall be deemed to be deductions 
                which are directly connected with the 
                securities loaned, and
                  (C) an obligation to return collateral 
                security shall not be treated as acquisition 
                indebtedness (as defined in paragraph (1)).
          (9) Real property acquired by a qualified 
        organization.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``acquisition 
                indebtedness'' does not, for purposes of this 
                section, include indebtedness incurred by a 
                qualified organization in acquiring or 
                improving any real property. For purposes of 
                this paragraph, an interest in a mortgage shall 
                in no event be treated as real property.
                  (B) Exceptions.--The provisions of 
                subparagraph (A) shall not apply in any case in 
                which--
                          (i) the price for the acquisition or 
                        improvement is not a fixed amount 
                        determined as of the date of the 
                        acquisition or the completion of the 
                        improvement;
                          (ii) the amount of any indebtedness 
                        or any other amount payable with 
                        respect to such indebtedness, or the 
                        time for making any payment of any such 
                        amount, is dependent, in whole or in 
                        part, upon any revenue, income, or 
                        profits derived from such real 
                        property;
                          (iii) the real property is at any 
                        time after the acquisition leased by 
                        the qualified organization to the 
                        person selling such property to such 
                        organization or to any person who bears 
                        a relationship described in section 
                        267(b) or 707(b) to such person;
                          (iv) the real property is acquired by 
                        a qualified trust from, or is at any 
                        time after the acquisition leased by 
                        such trust to, any person who--
                                  (I) bears a relationship 
                                which is described in 
                                subparagraph (C), (E), or (G) 
                                of section 4975(e)(2) to any 
                                plan with respect to which such 
                                trust was formed, or
                                  (II) bears a relationship 
                                which is described in 
                                subparagraph (F) or (H) of 
                                section 4975(e)(2) to any 
                                person described in subclause 
                                (I);
                          (v) any person described in clause 
                        (iii) or (iv) provides the qualified 
                        organization with financing in 
                        connection with the acquisition or 
                        improvement; or
                          (vi) the real property is held by a 
                        partnership unless the partnership 
                        meets the requirements of clauses (i) 
                        through (v) and unless--
                                  (I) all of the partners of 
                                the partnership are qualified 
                                organizations,
                                  (II) each allocation to a 
                                partner of the partnership 
                                which is a qualified 
                                organization is a qualified 
                                allocation (within the meaning 
                                of section 168(h)(6)), or
                                  (III) such partnership meets 
                                the requirements of 
                                subparagraph (E).
                For purposes of subclause (I) of clause (vi), 
                an organization shall not be treated as a 
                qualified organization if any income of such 
                organization is unrelated business taxable 
                income.
                  (C) Qualified organization.--For purposes of 
                this paragraph, the term ``qualified 
                organization'' means--
                          (i) an organization described in 
                        section 170(b)(1)(A)(ii) and its 
                        affiliated support organizations 
                        described in section 509(a)(3);
                          (ii) any trust which constitutes a 
                        qualified trust under section 401;
                          (iii) an organization described in 
                        section 501(c)(25); or
                          (iv) a retirement income account 
                        described in section 403(b)(9).
                  (D) Other pass-thru entities; tiered 
                entities.--Rules similar to the rules of 
                subparagraph (B)(vi) shall also apply in the 
                case of any pass-thru entity other than a 
                partnership and in the case of tiered 
                partnerships and other entities.
                  (E) Certain allocations permitted.--
                          (i) In general.--A partnership meets 
                        the requirements of this subparagraph 
                        if--
                                  (I) the allocation of items 
                                to any partner which is a 
                                qualified organization cannot 
                                result in such partner having a 
                                share of the overall 
                                partnership income for any 
                                taxable year greater than such 
                                partner's share of the overall 
                                partnership loss for the 
                                taxable year for which such 
                                partner's loss share will be 
                                the smallest, and
                                  (II) each allocation with 
                                respect to the partnership has 
                                substantial economic effect 
                                within the meaning of section 
                                704(b)(2).
                 For purposes of this clause, items allocated 
                under section 704(c) shall not be taken into 
                account.
                          (ii) Special rules.--
                                  (I) Chargebacks.--Except as 
                                provided in regulations, a 
                                partnership may without 
                                violating the requirements of 
                                this subparagraph provide for 
                                chargebacks with respect to 
                                disproportionate losses 
                                previously allocated to 
                                qualified organizations and 
                                disproportionate income 
                                previously allocated to other 
                                partners. Any chargeback 
                                referred to in the preceding 
                                sentence shall not be at a 
                                ratio in excess of the ratio 
                                under which the loss or income 
                                (as the case may be) was 
                                allocated.
                                  (II) Preferred rates of 
                                return, etc..--To the extent 
                                provided in regulations, a 
                                partnership may without 
                                violating the requirements of 
                                this subparagraph provide for 
                                reasonable preferred returns or 
                                reasonable guaranteed payments.
                          (iii) Regulations.--The Secretary 
                        shall prescribe such regulations as may 
                        be necessary to carry out the purposes 
                        of this subparagraph, including 
                        regulations which may provide for 
                        exclusion or segregation of items.
                  (F) Special rules for organizations described 
                in section 501(c)(25).--
                          (i) In general.--In computing under 
                        section 512 the unrelated business 
                        taxable income of a disqualified holder 
                        of an interest in an organization 
                        described in section 501(c)(25), there 
                        shall be taken into account--
                                  (I) as gross income derived 
                                from an unrelated trade or 
                                business, such holder's pro 
                                rata share of the items of 
                                income described in clause 
                                (ii)(I) of such organization, 
                                and
                                  (II) as deductions allowable 
                                in computing unrelated business 
                                taxable income, such holder's 
                                pro rata share of the items of 
                                deduction described in clause 
                                (ii)(II) of such organization.
                 Such amounts shall be taken into account for 
                the taxable year of the holder in which (or 
                with which) the taxable year of such 
                organization ends.
                          (ii) Description of amounts.--For 
                        purposes of clause (i)--
                                  (I) gross income is described 
                                in this clause to the extent 
                                such income would (but for this 
                                paragraph) be treated under 
                                subsection (a) as derived from 
                                an unrelated trade or business, 
                                and
                                  (II) any deduction is 
                                described in this clause to the 
                                extent it would (but for this 
                                paragraph) be allowable under 
                                subsection (a)(2) in computing 
                                unrelated business taxable 
                                income.
                          (iii) Disqualified holder.--For 
                        purposes of this subparagraph, the term 
                        ``disqualified holder'' means any 
                        shareholder (or beneficiary) which is 
                        not described in clause (i) or (ii) of 
                        subparagraph (C).
                  (G) Special rules for purposes of the 
                exceptions.--Except as otherwise provided by 
                regulations--
                          (i) Small leases disregarded.--For 
                        purposes of clauses (iii) and (iv) of 
                        subparagraph (B), a lease to a person 
                        described in such clause (iii) or (iv) 
                        shall be disregarded if no more than 25 
                        percent of the leasable floor space in 
                        a building (or complex of buildings) is 
                        covered by the lease and if the lease 
                        is on commercially reasonable terms.
                          (ii) Commercially reasonable 
                        financing.--Clause (v) of subparagraph 
                        (B) shall not apply if the financing is 
                        on commercially reasonable terms.
                  (H) Qualifying sales by financial 
                institutions.--
                          (i) In general.--In the case of a 
                        qualifying sale by a financial 
                        institution, except as provided in 
                        regulations, clauses (i) and (ii) of 
                        subparagraph (B) shall not apply with 
                        respect to financing provided by such 
                        institution for such sale.
                          (ii) Qualifying sale.--For purposes 
                        of this clause, there is a qualifying 
                        sale by a financial institution if--
                                  (I) a qualified organization 
                                acquires property described in 
                                clause (iii) from a financial 
                                institution and any gain 
                                recognized by the financial 
                                institution with respect to the 
                                property is ordinary income,
                                  (II) the stated principal 
                                amount of the financing 
                                provided by the financial 
                                institution does not exceed the 
                                amount of the outstanding 
                                indebtedness (including accrued 
                                but unpaid interest) of the 
                                financial institution with 
                                respect to the property 
                                described in clause (iii) 
                                immediately before the 
                                acquisition referred to in 
                                clause (iii) or (v), whichever 
                                is applicable, and
                                  (III) the present value 
                                (determined as of the time of 
                                the sale and by using the 
                                applicable Federal rate 
                                determined under section 
                                1274(d)) of the maximum amount 
                                payable pursuant to the 
                                financing that is determined by 
                                reference to the revenue, 
                                income, or profits derived from 
                                the property cannot exceed 30 
                                percent of the total purchase 
                                price of the property 
                                (including the contingent 
                                payments).
                          (iii) Property to which subparagraph 
                        applies.--Property is described in this 
                        clause if such property is foreclosure 
                        property, or is real property which--
                                  (I) was acquired by the 
                                qualified organization from a 
                                financial institution which is 
                                in conservatorship or 
                                receivership, or from the 
                                conservator or receiver of such 
                                an institution, and
                                  (II) was held by the 
                                financial institution at the 
                                time it entered into 
                                conservatorship or 
                                receivership.
                          (iv) Financial institution.--For 
                        purposes of this subparagraph, the term 
                        ``financial institution'' means--
                                  (I) any financial institution 
                                described in section 581 or 
                                591(a),
                                  (II) any other corporation 
                                which is a direct or indirect 
                                subsidiary of an institution 
                                referred to in subclause (I) 
                                but only if, by virtue of being 
                                affiliated with such 
                                institution, such other 
                                corporation is subject to 
                                supervision and examination by 
                                a Federal or State agency which 
                                regulates institutions referred 
                                to in subclause (I), and
                                  (III) any person acting as a 
                                conservator or receiver of an 
                                entity referred to in subclause 
                                (I) or (II) (or any government 
                                agency or corporation 
                                succeeding to the rights or 
                                interest of such person).
                          (v) Foreclosure property.--For 
                        purposes of this subparagraph, the term 
                        ``foreclosure property'' means any real 
                        property acquired by the financial 
                        institution as the result of having bid 
                        on such property at foreclosure, or by 
                        operation of an agreement or process of 
                        law, after there was a default (or a 
                        default was imminent) on indebtedness 
                        which such property secured.
  (d) Basis of debt-financed property acquired in corporate 
liquidation.--For purposes of this subtitle, if the property 
was acquired in a complete or partial liquidation of a 
corporation in exchange for its stock, the basis of the 
property shall be the same as it would be in the hands of the 
transferor corporation, increased by the amount of gain 
recognized to the transferor corporation upon such distribution 
and by the amount of any gain to the organization which was 
included, on account of such distribution, in unrelated 
business taxable income under subsection (a).
  (e) Allocation rules.--Where debt-financed property is held 
for purposes described in subsection (b)(1)(A), (B), (C), or 
(D) as well as for other purposes, proper allocation shall be 
made with respect to basis, indebtedness, and income and 
deductions. The allocations required by this section shall be 
made in accordance with regulations prescribed by the Secretary 
to the extent proper to carry out the purposes of this section.
  (f) Personal property leased with real property.--For 
purposes of this section, the term ``real property'' includes 
personal property of the lessor leased by it to a lessee of its 
real estate if the lease of such personal property is made 
under, or in connection with, the lease of such real estate.
  (g) Regulations.--The Secretary shall prescribe such 
regulations as may be necessary or appropriate to carry out the 
purposes of this section, including regulations to prevent the 
circumvention of any provision of this section through the use 
of segregated asset accounts.

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Subtitle F--Procedure and Administration

           *       *       *       *       *       *       *


CHAPTER 61--INFORMATION AND RETURNS

           *       *       *       *       *       *       *


Subchapter A--RETURNS AND RECORDS

           *       *       *       *       *       *       *


PART III--INFORMATION RETURNS

           *       *       *       *       *       *       *


 Subpart E--REGISTRATION OF AND INFORMATION CONCERNING PENSION, ETC., 
                                 PLANS

Sec. 6057. Annual registration, etc.
     * * * * * * *
Sec. 6059A. Reports of plans receiving pension rehabilitation loans.

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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 of 2019, 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(j)(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 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.

           *       *       *       *       *       *       *


 CHAPTER 68--ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE 
PENALTIES

           *       *       *       *       *       *       *


Subchapter A--ADDITIONS TO THE TAX AND ADDITIONAL AMOUNTS

           *       *       *       *       *       *       *


PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 6652. FAILURE TO FILE CERTAIN INFORMATION RETURNS, REGISTRATION 
                    STATEMENTS, ETC.

  (a) Returns with respect to certain payments aggregating less 
than $10.--In the case of each failure to file a statement of a 
payment to another person required under the authority of--
          (1) section 6042(a)(2) (relating to payments of 
        dividends aggregating less than $10), or
          (2) section 6044(a)(2) (relating to payments of 
        patronage dividends aggregating less than $10),
on the date prescribed therefor (determined with regard to any 
extension of time for filing), unless it is shown that such 
failure is due to reasonable cause and not to willful neglect, 
there shall be paid (upon notice and demand by the Secretary 
and in the same manner as tax) by the person failing to so file 
the statement, $1 for each such statement not so filed, but the 
total amount imposed on the delinquent person for all such 
failures during the calendar year shall not exceed $1,000.
  (b) Failure to report tips.--In the case of failure by an 
employee to report to his employer on the date and in the 
manner prescribed therefor any amount of tips required to be so 
reported by section 6053(a) which are wages (as defined in 
section 3121(a)) or which are compensation (as defined in 
section 3231(e)), unless it is shown that such failure is due 
to reasonable cause and not due to willful neglect, there shall 
be paid by the employee, in addition to the tax imposed by 
section 3101 or section 3201 (as the case may be) with respect 
to the amount of tips which he so failed to report, an amount 
equal to 50 percent of such tax.
  (c) Returns by exempt organizations and by certain trusts.--
          (1) Annual returns under section 6033(a)(1) or 
        6012(a)(6).--
                  (A) Penalty on organization.--In the case 
                of--
                          (i) a failure to file a return 
                        required under section 6033(a)(1) 
                        (relating to returns by exempt 
                        organizations) or section 6012(a)(6) 
                        (relating to returns by political 
                        organizations) on the date and in the 
                        manner prescribed therefor (determined 
                        with regard to any extension of time 
                        for filing), or
                          (ii) a failure to include any of the 
                        information required to be shown on a 
                        return filed under section 6033(a)(1) 
                        or section 6012(a)(6) or to show the 
                        correct information,
                there shall be paid by the exempt organization 
                $20 for each day during which such failure 
                continues. The maximum penalty under this 
                subparagraph on failures with respect to any 1 
                return shall not exceed the lesser of $10,000 
                or 5 percent of the gross receipts of the 
                organization for the year. In the case of an 
                organization having gross receipts exceeding 
                $1,000,000 for any year, with respect to the 
                return required under section 6033(a)(1) or 
                section 6012(a)(6) for such year, in applying 
                the first sentence of this subparagraph, the 
                amount of the penalty for each day during which 
                a failure continues shall be $100 in lieu of 
                the amount otherwise specified, and, in lieu of 
                applying the second sentence of this 
                subparagraph, the maximum penalty under this 
                subparagraph shall not exceed $50,000.
                  (B) Managers.--
                          (i) In general.--The Secretary may 
                        make a written demand on any 
                        organization subject to penalty under 
                        subparagraph (A) specifying therein a 
                        reasonable future date by which the 
                        return shall be filed (or the 
                        information furnished) for purposes of 
                        this subparagraph.
                          (ii) Failure to comply with demand.--
                        If any person fails to comply with any 
                        demand under clause (i) on or before 
                        the date specified in such demand, 
                        there shall be paid by the person 
                        failing to so comply $10 for each day 
                        after the expiration of the time 
                        specified in such demand during which 
                        such failure continues. The maximum 
                        penalty imposed under this subparagraph 
                        on all persons for failures with 
                        respect to any 1 return shall not 
                        exceed $5,000.
                  (C) Public inspection of annual returns and 
                reports.--In the case of a failure to comply 
                with the requirements of section 6104(d) with 
                respect to any annual return on the date and in 
                the manner prescribed therefor (determined with 
                regard to any extension of time for filing) or 
                report required under section 527(j), there 
                shall be paid by the person failing to meet 
                such requirements $20 for each day during which 
                such failure continues. The maximum penalty 
                imposed under this subparagraph on all persons 
                for failures with respect to any 1 return or 
                report shall not exceed $10,000.
                  (D) Public inspection of applications for 
                exemption and notice of status.--In the case of 
                a failure to comply with the requirements of 
                section 6104(d) with respect to any exempt 
                status application materials (as defined in 
                such section) or notice materials (as defined 
                in such section) on the date and in the manner 
                prescribed therefor, there shall be paid by the 
                person failing to meet such requirements $20 
                for each day during which such failure 
                continues.
                  (E) No penalty for certain annual notices.--
                This paragraph shall not apply with respect to 
                any notice required under section 6033(i).
          (2) Returns under section 6034 or 6043(b).--
                  (A) Penalty on organization or trust.--In the 
                case of a failure to file a return required 
                under section 6034 (relating to returns by 
                certain trusts) or section 6043(b) (relating to 
                terminations, etc., of exempt organizations), 
                on the date and in the manner prescribed 
                therefor (determined with regard to any 
                extension of time for filing), there shall be 
                paid by the exempt organization or trust 
                failing so to file $10 for each day during 
                which such failure continues, but the total 
                amount imposed under this subparagraph on any 
                organization or trust for failure to file any 1 
                return shall not exceed $5,000.
                  (B) Managers.--The Secretary may make written 
                demand on an organization or trust failing to 
                file under subparagraph (A) specifying therein 
                a reasonable future date by which such filing 
                shall be made for purposes of this 
                subparagraph. If such filing is not made on or 
                before such date, there shall be paid by the 
                person failing so to file $10 for each day 
                after the expiration of the time specified in 
                the written demand during which such failure 
                continues, but the total amount imposed under 
                this subparagraph on all persons for failure to 
                file any 1 return shall not exceed $5,000.
                  (C) Split-interest trusts.--In the case of a 
                trust which is required to file a return under 
                section 6034(a), subparagraphs (A) and (B) of 
                this paragraph shall not apply and paragraph 
                (1) shall apply in the same manner as if such 
                return were required under section 6033, except 
                that--
                          (i) the 5 percent limitation in the 
                        second sentence of paragraph (1)(A) 
                        shall not apply,
                          (ii) in the case of any trust with 
                        gross income in excess of $250,000, in 
                        applying the first sentence of 
                        paragraph (1)(A), the amount of the 
                        penalty for each day during which a 
                        failure continues shall be $100 in lieu 
                        of the amount otherwise specified, and 
                        in lieu of applying the second sentence 
                        of paragraph (1)(A), the maximum 
                        penalty under paragraph (1)(A) shall 
                        not exceed $50,000, and
                          (iii) the third sentence of paragraph 
                        (1)(A) shall be disregarded.
                In addition to any penalty imposed on the trust 
                pursuant to this subparagraph, if the person 
                required to file such return knowingly fails to 
                file the return, such penalty shall also be 
                imposed on such person who shall be personally 
                liable for such penalty.
          (3) Disclosure under section 6033(a)(2).--
                  (A) Penalty on entities.--In the case of a 
                failure to file a disclosure required under 
                section 6033(a)(2), there shall be paid by the 
                tax-exempt entity (the entity manager in the 
                case of a tax-exempt entity described in 
                paragraph (4), (5), (6), or (7) of section 
                4965(c)) $100 for each day during which such 
                failure continues. The maximum penalty under 
                this subparagraph on failures with respect to 
                any 1 disclosure shall not exceed $50,000.
                  (B) Written demand.--
                          (i) In general.--The Secretary may 
                        make a written demand on any entity or 
                        manager subject to penalty under 
                        subparagraph (A) specifying therein a 
                        reasonable future date by which the 
                        disclosure shall be filed for purposes 
                        of this subparagraph.
                          (ii) Failure to comply with demand.--
                        If any entity or manager fails to 
                        comply with any demand under clause (i) 
                        on or before the date specified in such 
                        demand, there shall be paid by such 
                        entity or manager failing to so comply 
                        $100 for each day after the expiration 
                        of the time specified in such demand 
                        during which such failure continues. 
                        The maximum penalty imposed under this 
                        subparagraph on all entities and 
                        managers for failures with respect to 
                        any 1 disclosure shall not exceed 
                        $10,000.
                  (C) Definitions.--Any term used in this 
                section which is also used in section 4965 
                shall have the meaning given such term under 
                section 4965.
          (4) Notices under section 506.--
                  (A) Penalty on organization.--In the case of 
                a failure to submit a notice required under 
                section 506(a) (relating to organizations 
                required to notify Secretary of intent to 
                operate as 501(c)(4)) on the date and in the 
                manner prescribed therefor, there shall be paid 
                by the organization failing to so submit $20 
                for each day during which such failure 
                continues, but the total amount imposed under 
                this subparagraph on any organization for 
                failure to submit any one notice shall not 
                exceed $5,000.
                  (B) Managers.--The Secretary may make written 
                demand on an organization subject to penalty 
                under subparagraph (A) specifying in such 
                demand a reasonable future date by which the 
                notice shall be submitted for purposes of this 
                subparagraph. If such notice is not submitted 
                on or before such date, there shall be paid by 
                the person failing to so submit $20 for each 
                day after the expiration of the time specified 
                in the written demand during which such failure 
                continues, but the total amount imposed under 
                this subparagraph on all persons for failure to 
                submit any one notice shall not exceed $5,000.
          (5) Reasonable cause exception.--No penalty shall be 
        imposed under this subsection with respect to any 
        failure if it is shown that such failure is due to 
        reasonable cause.
          (6) Other special rules.--
                  (A) Treatment as tax.--Any penalty imposed 
                under this subsection shall be paid on notice 
                and demand of the Secretary and in the same 
                manner as tax.
                  (B) Joint and several liability.--If more 
                than 1 person is liable under this subsection 
                for any penalty with respect to any failure, 
                all such persons shall be jointly and severally 
                liable with respect to such failure.
                  (C) Person.--For purposes of this subsection, 
                the term ``person'' means any officer, 
                director, trustee, employee, or other 
                individual who is under a duty to perform the 
                act in respect of which the violation occurs.
          (7) Adjustment for inflation.--
                  (A) In general.--In the case of any failure 
                relating to a return required to be filed in a 
                calendar year beginning after 2014, each of the 
                dollar amounts under paragraphs (1), (2), and 
                (3) shall be increased by an amount equal to 
                such dollar amount multiplied by the cost-of-
                living adjustment determined under section 
                1(f)(3) for the calendar year determined by 
                substituting ``calendar year 2013'' for 
                ``calendar year 2016'' in subparagraph (A)(ii) 
                thereof.
                  (B) Rounding.--If any amount adjusted under 
                subparagraph (A)--
                          (i) is not less than $5,000 and is 
                        not a multiple of $500, such amount 
                        shall be rounded to the next lowest 
                        multiple of $500, and
                          (ii) is not described in clause (i) 
                        and is not a multiple of $5, such 
                        amount shall be rounded to the next 
                        lowest multiple of $5.
  (d) Annual registration and other notification by pension 
plan.--
          (1) Registration.--In the case of any failure to file 
        a registration statement required under section 6057(a) 
        (relating to annual registration of certain plans) 
        which includes all participants required to be included 
        in such statement, on the date prescribed therefor 
        (determined without regard to any extension of time for 
        filing), unless it is shown that such failure is due to 
        reasonable cause, there shall be paid (on notice and 
        demand by the Secretary and in the same manner as tax) 
        by the person failing so to file, an amount equal to $1 
        for each participant with respect to whom there is a 
        failure to file, multiplied by the number of days 
        during which such failure continues, but the total 
        amount imposed under this paragraph on any person for 
        any failure to file with respect to any plan year shall 
        not exceed $5,000.
          (2) Notification of change of status.--In the case of 
        failure to file a notification required under section 
        6057(b) (relating to notification of change of status) 
        on the date prescribed therefor (determined without 
        regard to any extension of time for filing), unless it 
        is shown that such failure is due to reasonable cause, 
        there shall be paid (on notice and demand by the 
        Secretary and in the same manner as tax) by the person 
        failing so to file, $1 for each day during which such 
        failure continues, but the total amounts imposed under 
        this paragraph on any person for failure to file any 
        notification shall not exceed $1,000.
  (e) Information required in connection with certain plans of 
deferred compensation, etc..--In the case of failure to file a 
return or statement required under section 6058 (relating to 
information required in connection with certain plans of 
deferred compensation), 6059A (relating to reports of plans 
receiving pension rehabilitation loans), 6047 (relating to 
information relating to certain trusts and annuity and bond 
purchase plans), or 6039D (relating to returns and records with 
respect to certain fringe benefit plans) on the date and in the 
manner prescribed therefor (determined with regard to any 
extension of time for filing), unless it is shown that such 
failure is due to reasonable cause, there shall be paid (on 
notice and demand by the Secretary and in the same manner as 
tax) by the person failing so to file, $25 ($100 in the case of 
failures under section 6059A) for each day during which such 
failure continues, but the total amount imposed under this 
subsection on any person for failure to file any return shall 
not exceed $15,000. This subsection shall not apply to any 
return or statement which is an information return described in 
section 6724(d)(1)(C)(ii) or a payee statement described in 
section 6724(d)(2)(AA). 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.
  (f) Returns required under section 6039C.--
          (1) In general.--In the case of each failure to make 
        a return required by section 6039C which contains the 
        information required by such section on the date 
        prescribed therefor (determined with regard to any 
        extension of time for filing), unless it is shown that 
        such failure is due to reasonable cause and not to 
        willful neglect, the amount determined under paragraph 
        (2) shall be paid (upon notice and demand by the 
        Secretary and in the same manner as tax) by the person 
        failing to make such return.
          (2) Amount of penalty.--For purposes of paragraph 
        (1), the amount determined under this paragraph with 
        respect to any failure shall be $25 for each day during 
        which such failure continues.
          (3) Limitation.--The amount determined under 
        paragraph (2) with respect to any person for failing to 
        meet the requirements of section 6039C for any calendar 
        year shall not exceed the lesser of--
                  (A) $25,000, or
                  (B) 5 percent of the aggregate of the fair 
                market value of the United States real property 
                interests owned by such person at any time 
                during such year.
        For purposes of the preceding sentence, fair market 
        value shall be determined as of the end of the calendar 
        year (or, in the case of any property disposed of 
        during the calendar year, as of the date of such 
        disposition).
  (h) Failure to give notice to recipients of certain pension, 
etc., distributions.--In the case of each failure to provide 
notice as required by section 3405(e)(10)(B), at the time 
prescribed therefor, unless it is shown that such failure is 
due to reasonable cause and not to willful neglect, there shall 
be paid, on notice and demand of the Secretary and in the same 
manner as tax, by the person failing to provide such notice, an 
amount equal to $10 for each such failure, but the total amount 
imposed on such person for all such failures during any 
calendar year shall not exceed $5,000.
  (i) Failure to give written explanation to recipients of 
certain qualifying rollover distributions.--In the case of each 
failure to provide a written explanation as required by section 
402(f), at the time prescribed therefor, unless it is shown 
that such failure is due to reasonable cause and not to willful 
neglect, there shall be paid, on notice and demand of the 
Secretary and in the same manner as tax, by the person failing 
to provide such written explanation, an amount equal to $100 
for each such failure, but the total amount imposed on such 
person for all such failures during any calendar year shall not 
exceed $50,000.
  (j) Failure to file certification with respect to certain 
residential rental projects.--In the case of each failure to 
provide a certification as required by section 142(d)(7) at the 
time prescribed therefor, unless it is shown that such failure 
is due to reasonable cause and not to willful neglect, there 
shall be paid, on notice and demand of the Secretary and in the 
same manner as tax, by the person failing to provide such 
certification, an amount equal to $100 for each such failure.
  (k)  Failure to make reports required under section 1202.--In 
the case of a failure to make a report required under section 
1202(d)(1)(C) which contains the information required by such 
section on the date prescribed therefor (determined with regard 
to any extension of time for filing), there shall be paid (on 
notice and demand by the Secretary and in the same manner as 
tax) by the person failing to make such report, an amount equal 
to $50 for each report with respect to which there was such a 
failure. In the case of any failure due to negligence or 
intentional disregard, the preceding sentence shall be applied 
by substituting ``$100'' for ``$50''. In the case of a report 
covering periods in 2 or more years, the penalty determined 
under preceding provisions of this subsection shall be 
multiplied by the number of such years. No penalty shall be 
imposed under this subsection on any failure which is shown to 
be due to reasonable cause and not willful neglect.
  (l) Failure to file return with respect to certain corporate 
transactions.--In the case of any failure to make a return 
required under section 6043(c) containing the information 
required by such section on the date prescribed therefor 
(determined with regard to any extension of time for filing), 
unless it is shown that such failure is due to reasonable 
cause, there shall be paid (on notice and demand by the 
Secretary and in the same manner as tax) by the person failing 
to file such return, an amount equal to $500 for each day 
during which such failure continues, but the total amount 
imposed under this subsection with respect to any return shall 
not exceed $100,000.
  (m) Alcohol and tobacco taxes.--For penalties for failure to 
file certain information returns with respect to alcohol and 
tobacco taxes, see, generally, subtitle E.
  (n) Failure to make reports required under sections 3511, 
6053(c)(8), and 7705.--In the case of a failure to make a 
report required under section 3511, 6053(c)(8), or 7705 which 
contains the information required by such section on the date 
prescribed therefor (determined with regard to any extension of 
time for filing), there shall be paid (on notice and demand by 
the Secretary and in the same manner as tax) by the person 
failing to make such report, an amount equal to $50 for each 
report with respect to which there was such a failure. In the 
case of any failure due to negligence or intentional disregard 
the preceding sentence shall be applied by substituting 
``$100'' for ``$50''.
  (o) Failure to provide notices with respect to qualified 
small employer health reimbursement arrangements.--In the case 
of each failure to provide a written notice as required by 
section 9831(d)(4), unless it is shown that such failure is due 
to reasonable cause and not willful neglect, there shall be 
paid, on notice and demand of the Secretary and in the same 
manner as tax, by the person failing to provide such written 
notice, an amount equal to $50 per employee per incident of 
failure to provide such notice, but the total amount imposed on 
such person for all such failures during any calendar year 
shall not exceed $2,500.
  (p) Failure to provide notice under section 83(i).--In the 
case of each failure to provide a notice as required by section 
83(i)(6), at the time prescribed therefor, unless it is shown 
that such failure is due to reasonable cause and not to willful 
neglect, there shall be paid, on notice and demand of the 
Secretary and in the same manner as tax, by the person failing 
to provide such notice, an amount equal to $100 for each such 
failure, but the total amount imposed on such person for all 
such failures during any calendar year shall not exceed 
$50,000.

           *       *       *       *       *       *       *


Subtitle I--Trust Fund Code

           *       *       *       *       *       *       *


CHAPTER 98--TRUST FUND CODE

           *       *       *       *       *       *       *


               Subchapter A--ESTABLISHMENT OF TRUST FUNDS

Sec. 9501. Black Lung Disability Trust Fund.
     * * * * * * *
Sec. 9512. Pension Rehabilitation Trust Fund.

           *       *       *       *       *       *       *


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 section 6 of the Rehabilitation for Multiemployer 
        Pensions Act of 2019.
          (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 of 2019 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 of 2019,
          (2) for the payment of principal and interest on 
        obligations issued under section 6 of such Act, and
          (3) for administrative and operating expenses of such 
        Administration.

           *       *       *       *       *       *       *

                              ----------                              


            EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974



           *       *       *       *       *       *       *
TITLE I--PROTECTION OF EMPLOYEE BENEFIT RIGHTS

           *       *       *       *       *       *       *


Subtitle B--Regulatory Provisions

           *       *       *       *       *       *       *


Part 3--Funding

           *       *       *       *       *       *       *


  Sec. 305. (a) General Rule.--For purposes of this part, in 
the case of a multiemployer plan in effect on July 16, 2006--
          (1) if the plan is in endangered status--
                  (A) the plan sponsor shall adopt and 
                implement a funding improvement plan in 
                accordance with the requirements of subsection 
                (c), and
                  (B) the requirements of subsection (d) shall 
                apply during the funding plan adoption period 
                and the funding improvement period,
          (2) if the plan is in critical status--
                  (A) the plan sponsor shall adopt and 
                implement a rehabilitation plan in accordance 
                with the requirements of subsection (e), and
                  (B) the requirements of subsection (f) shall 
                apply during the rehabilitation plan adoption 
                period and the rehabilitation period, and
          (3) if the plan is in critical and declining status--
                  (A) the requirements of paragraph (2) shall 
                apply to the plan; and
                  (B) the plan sponsor may, by plan amendment, 
                suspend benefits in accordance with the 
                requirements of subsection (e)(9).
  (b) Determination of Endangered and Critical Status.--For 
purposes of this section--
          (1) Endangered status.--A multiemployer plan is in 
        endangered status for a plan year if, as determined by 
        the plan actuary under paragraph (3), the plan is not 
        in critical status for the plan year and is not 
        described in paragraph (5), and, as of the beginning of 
        the plan year, either--
                  (A) the plan's funded percentage for such 
                plan year is less than 80 percent, or
                  (B) the plan has an accumulated funding 
                deficiency for such plan year, or is projected 
                to have such an accumulated funding deficiency 
                for any of the 6 succeeding plan years, taking 
                into account any extension of amortization 
                periods under section 304(d).
        For purposes of this section, a plan shall be treated 
        as in seriously endangered status for a plan year if 
        the plan is described in both subparagraphs (A) and 
        (B).
          (2) Critical status.--A multiemployer plan is in 
        critical status for a plan year if, as determined by 
        the plan actuary under paragraph (3), the plan is 
        described in 1 or more of the following subparagraphs 
        as of the beginning of the plan year:
                  (A) A plan is described in this subparagraph 
                if--
                          (i) the funded percentage of the plan 
                        is less than 65 percent, and
                          (ii) the sum of--
                                  (I) the fair market value of 
                                plan assets, plus
                                  (II) the present value of the 
                                reasonably anticipated employer 
                                contributions for the current 
                                plan year and each of the 6 
                                succeeding plan years, assuming 
                                that the terms of all 
                                collective bargaining 
                                agreements pursuant to which 
                                the plan is maintained for the 
                                current plan year continue in 
                                effect for succeeding plan 
                                years,
                        is less than the present value of all 
                        nonforfeitable benefits projected to be 
                        payable under the plan during the 
                        current plan year and each of the 6 
                        succeeding plan years (plus 
                        administrative expenses for such plan 
                        years).
                  (B) A plan is described in this subparagraph 
                if--
                          (i) the plan has an accumulated 
                        funding deficiency for the current plan 
                        year, not taking into account any 
                        extension of amortization periods under 
                        section 304(d), or
                          (ii) the plan is projected to have an 
                        accumulated funding deficiency for any 
                        of the 3 succeeding plan years (4 
                        succeeding plan years if the funded 
                        percentage of the plan is 65 percent or 
                        less), not taking into account any 
                        extension of amortization periods under 
                        section 304(d).
                  (C) A plan is described in this subparagraph 
                if--
                          (i)(I) the plan's normal cost for the 
                        current plan year, plus interest 
                        (determined at the rate used for 
                        determining costs under the plan) for 
                        the current plan year on the amount of 
                        unfunded benefit liabilities under the 
                        plan as of the last date of the 
                        preceding plan year, exceeds
                          (II) the present value of the 
                        reasonably anticipated employer and 
                        employee contributions for the current 
                        plan year,
                          (ii) the present value, as of the 
                        beginning of the current plan year, of 
                        nonforfeitable benefits of inactive 
                        participants is greater than the 
                        present value of nonforfeitable 
                        benefits of active participants, and
                          (iii) the plan has an accumulated 
                        funding deficiency for the current plan 
                        year, or is projected to have such a 
                        deficiency for any of the 4 succeeding 
                        plan years, not taking into account any 
                        extension of amortization periods under 
                        section 304(d).
                  (D) A plan is described in this subparagraph 
                if the sum of--
                          (i) the fair market value of plan 
                        assets, plus
                          (ii) the present value of the 
                        reasonably anticipated employer 
                        contributions for the current plan year 
                        and each of the 4 succeeding plan 
                        years, assuming that the terms of all 
                        collective bargaining agreements 
                        pursuant to which the plan is 
                        maintained for the current plan year 
                        continue in effect for succeeding plan 
                        years,
                is less than the present value of all benefits 
                projected to be payable under the plan during 
                the current plan year and each of the 4 
                succeeding plan years (plus administrative 
                expenses for such plan years).
          (3) Annual certification by plan actuary.--
                  (A) In general.--Not later than the 90th day 
                of each plan year of a multiemployer plan, the 
                plan actuary shall certify to the Secretary of 
                the Treasury and to the plan sponsor--
                          (i) whether or not the plan is in 
                        endangered status for such plan year, 
                        whether or not the plan is or will be 
                        in critical status for such plan yearor 
                        for any of the succeeding 5 plan years, 
                        and whether or not the plan is or will 
                        be in critical and declining status for 
                        such plan year, and
                          (ii) in the case of a plan which is 
                        in a funding improvement or 
                        rehabilitation period, whether or not 
                        the plan is making the scheduled 
                        progress in meeting the requirements of 
                        its funding improvement or 
                        rehabilitation plan.
                  (B) Actuarial projections of assets and 
                liabilities.--
                          (i) In general.--Except as provided 
                        in clause (iv), in making the 
                        determinations and projections under 
                        this subsection, the plan actuary shall 
                        make projections required for the 
                        current and succeeding plan years of 
                        the current value of the assets of the 
                        plan and the present value of all 
                        liabilities to participants and 
                        beneficiaries under the plan for the 
                        current plan year as of the beginning 
                        of such year. The actuary's projections 
                        shall be based on reasonable actuarial 
                        estimates, assumptions, and methods 
                        that, except as provided in clause 
                        (iii), offer the actuary's best 
                        estimate of anticipated experience 
                        under the plan. The projected present 
                        value of liabilities as of the 
                        beginning of such year shall be 
                        determined based on the most recent of 
                        either--
                                  (I) the actuarial statement 
                                required under section 103(d) 
                                with respect to the most 
                                recently filed annual report, 
                                or
                                  (II) the actuarial valuation 
                                for the preceding plan year.
                          (ii) Determinations of future 
                        contributions.--Any actuarial 
                        projection of plan assets shall 
                        assume--
                                  (I) reasonably anticipated 
                                employer contributions for the 
                                current and succeeding plan 
                                years, assuming that the terms 
                                of the one or more collective 
                                bargaining agreements pursuant 
                                to which the plan is maintained 
                                for the current plan year 
                                continue in effect for 
                                succeeding plan years, or
                                  (II) that employer 
                                contributions for the most 
                                recent plan year will continue 
                                indefinitely, but only if the 
                                plan actuary determines there 
                                have been no significant 
                                demographic changes that would 
                                make such assumption 
                                unreasonable.
                          (iii) Projected industry activity.--
                        Any projection of activity in the 
                        industry or industries covered by the 
                        plan, including future covered 
                        employment and contribution levels, 
                        shall be based on information provided 
                        by the plan sponsor, which shall act 
                        reasonably and in good faith.
                          (iv) Projections relating to critical 
                        status in succeeding plan years.--
                        Clauses (i) and (ii) (other than the 
                        2nd sentence of clause (i)) may be 
                        disregarded by a plan actuary in the 
                        case of any certification of whether a 
                        plan will be in critical status in a 
                        succeeding plan year, except that a 
                        plan sponsor may not elect to be in 
                        critical status for a plan year under 
                        paragraph (4) in any case in which the 
                        certification upon which such election 
                        would be based is made without regard 
                        to such clauses.
                          (iv) Projections of critical and 
                        declining status.--In determining 
                        whether a plan is in critical and 
                        declining status as described in 
                        subsection (e)(9), clauses (i), (ii), 
                        and (iii) shall apply, except that--
                                  (I) if reasonable, the plan 
                                actuary shall assume that each 
                                contributing employer in 
                                compliance continues to comply 
                                through the end of the 
                                rehabilitation period or such 
                                later time as provided in 
                                subsection (e)(3)(A)(ii) with 
                                the terms of the rehabilitation 
                                plan that correspond to the 
                                schedule adopted or imposed 
                                under subsection (e), and
                                  (II) the plan actuary shall 
                                take into account any 
                                suspensions of benefits 
                                described in subsection (e)(9) 
                                adopted in a prior plan year 
                                that are still in effect.
                  (C) Penalty for failure to secure timely 
                actuarial certification.--Any failure of the 
                plan's actuary to certify the plan's status 
                under this subsection by the date specified in 
                subparagraph (A) shall be treated for purposes 
                of section 502(c)(2) as a failure or refusal by 
                the plan administrator to file the annual 
                report required to be filed with the Secretary 
                under section 101(b)(1).
                  (D) Notice.--
                          (i) In general.--In any case in which 
                        it is certified under subparagraph (A) 
                        that a multiemployer plan is or will be 
                        in endangered or critical status for a 
                        plan year or in which a plan sponsor 
                        elects to be in critical status for a 
                        plan year under paragraph (4), the plan 
                        sponsor shall, not later than 30 days 
                        after the date of the certification, 
                        provide notification of the endangered 
                        or critical status to the participants 
                        and beneficiaries, the bargaining 
                        parties, the Pension Benefit Guaranty 
                        Corporation, and the Secretary. In any 
                        case in which a plan sponsor elects to 
                        be in critical status for a plan year 
                        under paragraph (4), the plan sponsor 
                        shall notify the Secretary of the 
                        Treasury of such election not later 
                        than 30 days after the date of such 
                        certification or such other time as the 
                        Secretary of the Treasury may prescribe 
                        by regulations or other guidance.
                          (ii) Plans in critical status.--If it 
                        is certified under subparagraph (A) 
                        that a multiemployer plan is or will be 
                        in critical status, the plan sponsor 
                        shall include in the notice under 
                        clause (i) an explanation of the 
                        possibility that--
                                  (I) adjustable benefits (as 
                                defined in subsection (e)(8)) 
                                may be reduced, and
                                  (II) such reductions may 
                                apply to participants and 
                                beneficiaries whose benefit 
                                commencement date is on or 
                                after the date such notice is 
                                provided for the first plan 
                                year in which the plan is in 
                                critical status.
                          (iii) In the case of a multiemployer 
                        plan that would be in endangered status 
                        but for paragraph (5), the plan sponsor 
                        shall provide notice to the bargaining 
                        parties and the Pension Benefit 
                        Guaranty Corporation that the plan 
                        would be in endangered status but for 
                        such paragraph.
                          (iv) Model notice.--The Secretary of 
                        the Treasury, in consultation with the 
                        Secretary shall prescribe a model 
                        notice that a multiemployer plan may 
                        use to satisfy the requirements under 
                        clauses (ii) and (iii).
                           (v) Notice of projection to be in 
                        critical status in a future plan 
                        year.--In any case in which it is 
                        certified under subparagraph (A)(i) 
                        that a multiemployer plan will be in 
                        critical status for any of 5 succeeding 
                        plan years (but not for the current 
                        plan year) and the plan sponsor of such 
                        plan has not made an election to be in 
                        critical status for the plan year under 
                        paragraph (4), the plan sponsor shall, 
                        not later than 30 days after the date 
                        of the certification, provide 
                        notification of the projected critical 
                        status to the Pension Benefit Guaranty 
                        Corporation.
          (4) Election to be in critical status.--
        Notwithstanding paragraph (2) and subject to paragraph 
        (3)(B)(iv)--
                  (A) the plan sponsor of a multiemployer plan 
                that is not in critical status for a plan year 
                but that is projected by the plan actuary, 
                pursuant to the determination under paragraph 
                (3), to be in critical status in any of the 
                succeeding 5 plan years may, not later than 30 
                days after the date of the certification under 
                paragraph (3)(A), elect to be in critical 
                status effective for the current plan year,
                  (B) the plan year in which the plan sponsor 
                elects to be in critical status under 
                subparagraph (A) shall be treated for purposes 
                of this section as the first year in which the 
                plan is in critical status, regardless of the 
                date on which the plan first satisfies the 
                criteria for critical status under paragraph 
                (2), and
                  (C) a plan that is in critical status under 
                this paragraph shall not emerge from critical 
                status except in accordance with subsection 
                (e)(4)(B).
          (5) Special rule.--A plan is described in this 
        paragraph if--
                  (A) as part of the actuarial certification of 
                endangered status under paragraph (3)(A) for 
                the plan year, the plan actuary certifies that 
                the plan is projected to no longer be described 
                in either paragraph (1)(A) or paragraph (1)(B) 
                as of the end of the tenth plan year ending 
                after the plan year to which the certification 
                relates, and
                  (B) the plan was not in critical or 
                endangered status for the immediately preceding 
                plan year.
          (6) Critical and declining status.--For purposes of 
        this section, a plan in critical status shall be 
        treated as in critical and declining status if the plan 
        is described in one or more of subparagraphs (A), (B), 
        (C), and (D) of paragraph (2) and the plan is projected 
        to become insolvent within the meaning of section 4245 
        during the current plan year or any of the 14 
        succeeding plan years (19 succeeding plan years if the 
        plan has a ratio of inactive participants to active 
        participants that exceeds 2 to 1 or if the funded 
        percentage of the plan is less than 80 percent).
  (c) Funding Improvement Plan Must Be Adopted for 
Multiemployer Plans in Endangered Status.--
          (1) In general.--In any case in which a multiemployer 
        plan is in endangered status for a plan year, the plan 
        sponsor, in accordance with this subsection--
                  (A) shall adopt a funding improvement plan 
                not later than 240 days following the required 
                date for the actuarial certification of 
                endangered status under subsection (b)(3)(A), 
                and
                  (B) within 30 days after the adoption of the 
                funding improvement plan--
                          (i) shall provide to the bargaining 
                        parties 1 or more schedules showing 
                        revised benefit structures, revised 
                        contribution structures, or both, 
                        which, if adopted, may reasonably be 
                        expected to enable the multiemployer 
                        plan to meet the applicable benchmarks 
                        in accordance with the funding 
                        improvement plan, including--
                                  (I) one proposal for 
                                reductions in the amount of 
                                future benefit accruals 
                                necessary to achieve the 
                                applicable benchmarks, assuming 
                                no amendments increasing 
                                contributions under the plan 
                                (other than amendments 
                                increasing contributions 
                                necessary to achieve the 
                                applicable benchmarks after 
                                amendments have reduced future 
                                benefit accruals to the maximum 
                                extent permitted by law), and
                                  (II) one proposal for 
                                increases in contributions 
                                under the plan necessary to 
                                achieve the applicable 
                                benchmarks, assuming no 
                                amendments reducing future 
                                benefit accruals under the 
                                plan, and
                          (ii) may, if the plan sponsor deems 
                        appropriate, prepare and provide the 
                        bargaining parties with additional 
                        information relating to contribution 
                        rates or benefit reductions, 
                        alternative schedules, or other 
                        information relevant to achieving the 
                        applicable benchmarks in accordance 
                        with the funding improvement plan.
                For purposes of this section, the term 
                ``applicable benchmarks'' means the 
                requirements applicable to the multiemployer 
                plan under paragraph (3) (as modified by 
                paragraph (5)).
          (2) Exception for years after process begins.--
        Paragraph (1) shall not apply to a plan year if such 
        year is in a funding plan adoption period or funding 
        improvement period by reason of the plan being in 
        endangered status for a preceding plan year. For 
        purposes of this section, such preceding plan year 
        shall be the initial determination year with respect to 
        the funding improvement plan to which it relates.
          (3) Funding improvement plan.--For purposes of this 
        section--
                  (A) In general.--A funding improvement plan 
                is a plan which consists of the actions, 
                including options or a range of options to be 
                proposed to the bargaining parties, formulated 
                to provide, based on reasonably anticipated 
                experience and reasonable actuarial 
                assumptions, for the attainment by the plan 
                during the funding improvement period of the 
                following requirements:
                          (i) Increase in plan's funding 
                        percentage.--The plan's funded 
                        percentage as of the close of the 
                        funding improvement period equals or 
                        exceeds a percentage equal to the sum 
                        of--
                                  (I) such percentage as of the 
                                beginning of the first plan 
                                year for which the plan is 
                                certified to be in endangered 
                                status pursuant to paragraph 
                                (b)(3), plus
                                  (II) 33 percent of the 
                                difference between 100 percent 
                                and the percentage under 
                                subclause (I).
                          (ii) Avoidance of accumulated funding 
                        deficiencies.--No accumulated funding 
                        deficiency for the last plan year 
                        during the funding improvement period 
                        (taking into account any extension of 
                        amortization periods under section 
                        304(d)).
                  (B) Seriously endangered plans.--In the case 
                of a plan in seriously endangered status, 
                except as provided in paragraph (5), 
                subparagraph (A)(i)(II) shall be applied by 
                substituting ``20 percent'' for ``33 percent''.
          (4) Funding improvement period.--For purposes of this 
        section--
                  (A) In general.--The funding improvement 
                period for any funding improvement plan adopted 
                pursuant to this subsection is the 10-year 
                period beginning on the first day of the first 
                plan year of the multiemployer plan beginning 
                after the earlier of--
                          (i) the second anniversary of the 
                        date of the adoption of the funding 
                        improvement plan, or
                          (ii) the expiration of the collective 
                        bargaining agreements in effect on the 
                        due date for the actuarial 
                        certification of endangered status for 
                        the initial determination year under 
                        subsection (b)(3)(A) and covering, as 
                        of such due date, at least 75 percent 
                        of the active participants in such 
                        multiemployer plan.
                  (B) Seriously endangered plans.--In the case 
                of a plan in seriously endangered status, 
                except as provided in paragraph (5), 
                subparagraph (A) shall be applied by 
                substituting ``15-year period'' for ``10-year 
                period''.
                  (C) Coordination with changes in status.--
                          (i) Plans no longer in endangered 
                        status.--If the plan's actuary 
                        certifies under subsection (b)(3)(A) 
                        for a plan year in any funding plan 
                        adoption period or funding improvement 
                        period that the plan is no longer in 
                        endangered status and is not in 
                        critical status, the funding plan 
                        adoption period or funding improvement 
                        period, whichever is applicable, shall 
                        end as of the close of the preceding 
                        plan year.
                          (ii) Plans in critical status.--If 
                        the plan's actuary certifies under 
                        subsection (b)(3)(A) for a plan year in 
                        any funding plan adoption period or 
                        funding improvement period that the 
                        plan is in critical status, the funding 
                        plan adoption period or funding 
                        improvement period, whichever is 
                        applicable, shall end as of the close 
                        of the plan year preceding the first 
                        plan year in the rehabilitation period 
                        with respect to such status.
                  (D) Plans in endangered status at end of 
                period.--If the plan's actuary certifies under 
                subsection (b)(3)(A) for the first plan year 
                following the close of the period described in 
                subparagraph (A) that the plan is in endangered 
                status, the provisions of this subsection and 
                subsection (d) shall be applied as if such 
                first plan year were an initial determination 
                year, except that the plan may not be amended 
                in a manner inconsistent with the funding 
                improvement plan in effect for the preceding 
                plan year until a new funding improvement plan 
                is adopted.
          (5) Special rules for seriously endangered plans more 
        than 70 percent funded.--
                  (A) In general.--If the funded percentage of 
                a plan in seriously endangered status was more 
                than 70 percent as of the beginning of the 
                initial determination year--
                          (i) paragraphs (3)(B) and (4)(B) 
                        shall apply only if the plan's actuary 
                        certifies, within 30 days after the 
                        certification under subsection 
                        (b)(3)(A) for the initial determination 
                        year, that, based on the terms of the 
                        plan and the collective bargaining 
                        agreements in effect at the time of 
                        such certification, the plan is not 
                        projected to meet the requirements of 
                        paragraph (3)(A) (without regard to 
                        paragraphs (3)(B) and (4)(B)), and
                          (ii) if there is a certification 
                        under clause (i), the plan may, in 
                        formulating its funding improvement 
                        plan, only take into account the rules 
                        of paragraph (3)(B) and (4)(B) for plan 
                        years in the funding improvement period 
                        beginning on or before the date on 
                        which the last of the collective 
                        bargaining agreements described in 
                        paragraph (4)(A)(ii) expires.
                  (B) Special rule after expiration of 
                agreements.--Notwithstanding subparagraph 
                (A)(ii), if, for any plan year ending after the 
                date described in subparagraph (A)(ii), the 
                plan actuary certifies (at the time of the 
                annual certification under subsection (b)(3)(A) 
                for such plan year) that, based on the terms of 
                the plan and collective bargaining agreements 
                in effect at the time of that annual 
                certification, the plan is not projected to be 
                able to meet the requirements of paragraph 
                (3)(A) (without regard to paragraphs (3)(B) and 
                (4)(B)), paragraphs (3)(B) and (4)(B) shall 
                continue to apply for such year.
          (6) Updates to funding improvement plan and 
        schedules.--
                  (A) Funding improvement plan.--The plan 
                sponsor shall annually update the funding 
                improvement plan and shall file the update with 
                the plan's annual report under section 104.
                  (B) Schedules.--The plan sponsor shall 
                annually update any schedule of contribution 
                rates provided under this subsection to reflect 
                the experience of the plan.
                  (C) Duration of schedule.--A schedule of 
                contribution rates provided by the plan sponsor 
                and relied upon by bargaining parties in 
                negotiating a collective bargaining agreement 
                shall remain in effect for the duration of that 
                collective bargaining agreement.
          (7) Imposition of schedule where failure to adopt 
        funding improvement plan.--
                  (A) Initial contribution schedule.--If--
                          (i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan that was in effect 
                        at the time the plan entered endangered 
                        status expires, and
                          (ii) after receiving one or more 
                        schedules from the plan sponsor under 
                        paragraph (1)(B), the bargaining 
                        parties with respect to such agreement 
                        fail to adopt a contribution schedule 
                        with terms consistent with the funding 
                        improvement plan and a schedule from 
                        the plan sponsor,
                the plan sponsor shall implement the schedule 
                described in paragraph (1)(B)(i)(I) beginning 
                on the date specified in subparagraph (C).
                  (B) Subsequent contribution schedule.--If--
                          (i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan in accordance with a 
                        schedule provided by the plan sponsor 
                        pursuant to a funding improvement plan 
                        (or imposed under subparagraph (A)) 
                        expires while the plan is still in 
                        endangered status, and
                          (ii) after receiving one or more 
                        updated schedules from the plan sponsor 
                        under paragraph (6)(B), the bargaining 
                        parties with respect to such agreement 
                        fail to adopt a contribution schedule 
                        with terms consistent with the updated 
                        funding improvement plan and a schedule 
                        from the plan sponsor,
                then the contribution schedule applicable under 
                the expired collective bargaining agreement, as 
                updated and in effect on the date the 
                collective bargaining agreement expires, shall 
                be implemented by the plan sponsor beginning on 
                the date specified in subparagraph (C).
                  (C) Date of implementation.--The date 
                specified in this subparagraph is the date 
                which is 180 days after the date on which the 
                collective bargaining agreement described in 
                subparagraph (A) or (B) expires.
                  (D) Failure to make scheduled 
                contributions.--Any failure to make a 
                contribution under a schedule of contribution 
                rates provided under this paragraph shall be 
                treated as a delinquent contribution under 
                section 515 and shall be enforceable as such.
          (8) Funding plan adoption period.--For purposes of 
        this section, the term ``funding plan adoption period'' 
        means the period beginning on the date of the 
        certification under subsection (b)(3)(A) for the 
        initial determination year and ending on the day before 
        the first day of the funding improvement period.
  (d) Rules for Operation of Plan During Adoption and 
Improvement Periods.--
          (1) Compliance with funding improvement plan.--
                  (A) In general.--A plan may not be amended 
                after the date of the adoption of a funding 
                improvement plan under subsection (c) so as to 
                be inconsistent with the funding improvement 
                plan.
                  (B) Special rules for benefit increases.--A 
                plan may not be amended after the date of the 
                adoption of a funding improvement plan under 
                subsection (c) so as to increase benefits, 
                including future benefit accruals, unless the 
                plan actuary certifies that such increase is 
                paid for out of additional contributions not 
                contemplated by the funding improvement plan, 
                and, after taking into account the benefit 
                increase, the multiemployer plan still is 
                reasonably expected to meet the applicable 
                benchmark on the schedule contemplated in the 
                funding improvement plan.
          (2) Special rules for plan adoption period.--During 
        the period beginning on the date of the certification 
        under subsection (b)(3)(A) for the initial 
        determination year and ending on the date of the 
        adoption of a funding improvement plan--
                  (A) the plan sponsor may not accept a 
                collective bargaining agreement or 
                participation agreement with respect to the 
                multiemployer plan that provides for--
                          (i) a reduction in the level of 
                        contributions for any participants,
                          (ii) a suspension of contributions 
                        with respect to any period of service, 
                        or
                          (iii) any new direct or indirect 
                        exclusion of younger or newly hired 
                        employees from plan participation, and
                  (B) no amendment of the plan which increases 
                the liabilities of the plan by reason of any 
                increase in benefits, any change in the accrual 
                of benefits, or any change in the rate at which 
                benefits become nonforfeitable under the plan 
                may be adopted unless the amendment is required 
                as a condition of qualification under part I of 
                subchapter D of chapter 1 of the Internal 
                Revenue Code of 1986 or to comply with other 
                applicable law.
  (e) Rehabilitation Plan Must Be Adopted for Multiemployer 
Plans in Critical Status.--
          (1) In general.--In any case in which a multiemployer 
        plan is in critical status for a plan year, the plan 
        sponsor, in accordance with this subsection--
                  (A) shall adopt a rehabilitation plan not 
                later than 240 days following the required date 
                for the actuarial certification of critical 
                status under subsection (b)(3)(A), and
                  (B) within 30 days after the adoption of the 
                rehabilitation plan--
                          (i) shall provide to the bargaining 
                        parties 1 or more schedules showing 
                        revised benefit structures, revised 
                        contribution structures, or both, 
                        which, if adopted, may reasonably be 
                        expected to enable the multiemployer 
                        plan to emerge from critical status in 
                        accordance with the rehabilitation 
                        plan, and
                          (ii) may, if the plan sponsor deems 
                        appropriate, prepare and provide the 
                        bargaining parties with additional 
                        information relating to contribution 
                        rates or benefit reductions, 
                        alternative schedules, or other 
                        information relevant to emerging from 
                        critical status in accordance with the 
                        rehabilitation plan.
        The schedule or schedules described in subparagraph 
        (B)(i) shall reflect reductions in future benefit 
        accruals and adjustable benefits, and increases in 
        contributions, that the plan sponsor determines are 
        reasonably necessary to emerge from critical status. 
        One schedule shall be designated as the default 
        schedule and such schedule shall assume that there are 
        no increases in contributions under the plan other than 
        the increases necessary to emerge from critical status 
        after future benefit accruals and other benefits (other 
        than benefits the reduction or elimination of which are 
        not permitted under section 204(g)) have been reduced 
        to the maximum extent permitted by law.
          (2) Exception for years after process begins.--
        Paragraph (1) shall not apply to a plan year if such 
        year is in a rehabilitation plan adoption period or 
        rehabilitation period by reason of the plan being in 
        critical status for a preceding plan year. For purposes 
        of this section, such preceding plan year shall be the 
        initial critical year with respect to the 
        rehabilitation plan to which it relates.
          (3) Rehabilitation plan.--For purposes of this 
        section--
                  (A) In general.--A rehabilitation plan is a 
                plan which consists of--
                          (i) actions, including options or a 
                        range of options to be proposed to the 
                        bargaining parties, formulated, based 
                        on reasonably anticipated experience 
                        and reasonable actuarial assumptions, 
                        to enable the plan to cease to be in 
                        critical status by the end of the 
                        rehabilitation period and may include 
                        reductions in plan expenditures 
                        (including plan mergers and 
                        consolidations), reductions in future 
                        benefit accruals or increases in 
                        contributions, if agreed to by the 
                        bargaining parties, or any combination 
                        of such actions, or
                          (ii) if the plan sponsor determines 
                        that, based on reasonable actuarial 
                        assumptions and upon exhaustion of all 
                        reasonable measures, the plan can not 
                        reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, reasonable 
                        measures to emerge from critical status 
                        at a later time or to forestall 
                        possible insolvency (within the meaning 
                        of section 4245).
                A rehabilitation plan must provide annual 
                standards for meeting the requirements of such 
                rehabilitation plan. Such plan shall also 
                include the schedules required to be provided 
                under paragraph (1)(B)(i) and if clause (ii) 
                applies, shall set forth the alternatives 
                considered, explain why the plan is not 
                reasonably expected to emerge from critical 
                status by the end of the rehabilitation period, 
                and specify when, if ever, the plan is expected 
                to emerge from critical status in accordance 
                with the rehabilitation plan.
                  (B) Updates to rehabilitation plan and 
                schedules.--
                          (i) Rehabilitation plan.--The plan 
                        sponsor shall annually update the 
                        rehabilitation plan and shall file the 
                        update with the plan's annual report 
                        under section 104.
                          (ii) Schedules.--The plan sponsor 
                        shall annually update any schedule of 
                        contribution rates provided under this 
                        subsection to reflect the experience of 
                        the plan.
                          (iii) Duration of schedule.--A 
                        schedule of contribution rates provided 
                        by the plan sponsor and relied upon by 
                        bargaining parties in negotiating a 
                        collective bargaining agreement shall 
                        remain in effect for the duration of 
                        that collective bargaining agreement.
                  (C) Imposition of schedule where failure to 
                adopt rehabilitation plan.--
                          (i) Initial contribution schedule.--
                        If--
                                  (I) a collective bargaining 
                                agreement providing for 
                                contributions under a 
                                multiemployer plan that was in 
                                effect at the time the plan 
                                entered critical status 
                                expires, and
                                  (II) after receiving one or 
                                more schedules from the plan 
                                sponsor under paragraph (1)(B), 
                                the bargaining parties with 
                                respect to such agreement fail 
                                to adopt a contribution 
                                schedule with terms consistent 
                                with the rehabilitation plan 
                                and a schedule from the plan 
                                sponsor under paragraph 
                                (1)(B)(i),
                        the plan sponsor shall implement the 
                        schedule described in the last sentence 
                        of paragraph (1) beginning on the date 
                        specified in clause (iii).
                          (ii) Subsequent contribution 
                        schedule.--If--
                                  (I) a collective bargaining 
                                agreement providing for 
                                contributions under a 
                                multiemployer plan in 
                                accordance with a schedule 
                                provided by the plan sponsor 
                                pursuant to a rehabilitation 
                                plan (or imposed under 
                                subparagraph (C)(i)) expires 
                                while the plan is still in 
                                critical status, and
                                  (II) after receiving one or 
                                more updated schedules from the 
                                plan sponsor under subparagraph 
                                (B)(ii), the bargaining parties 
                                with respect to such agreement 
                                fail to adopt a contribution 
                                schedule with terms consistent 
                                with the updated rehabilitation 
                                plan and a schedule from the 
                                plan sponsor,
                        then the contribution schedule 
                        applicable under the expired collective 
                        bargaining agreement, as updated and in 
                        effect on the date the collective 
                        bargaining agreement expires, shall be 
                        implemented by the plan sponsor 
                        beginning on the date specified in 
                        clause (iii).
                          (iii) Date of implementation.--The 
                        date specified in this subparagraph is 
                        the date which is 180 days after the 
                        date on which the collective bargaining 
                        agreement described in clause (i) or 
                        (ii) expires.
                          (iv) Failure to make scheduled 
                        contributions.--Any failure to make a 
                        contribution under a schedule of 
                        contribution rates provided under this 
                        subsection shall be treated as a 
                        delinquent contribution under section 
                        515 and shall be enforceable as such.
          (4) Rehabilitation period.--For purposes of this 
        section--
                  (A) In general.--The rehabilitation period 
                for a plan in critical status is the 10-year 
                period beginning on the first day of the first 
                plan year of the multiemployer plan following 
                the earlier of--
                          (i) the second anniversary of the 
                        date of the adoption of the 
                        rehabilitation plan, or
                          (ii) the expiration of the collective 
                        bargaining agreements in effect on the 
                        due date for the actuarial 
                        certification of critical status for 
                        the initial critical year under 
                        subsection (a)(1) and covering, as of 
                        such date at least 75 percent of the 
                        active participants in such 
                        multiemployer plan.
                If a plan emerges from critical status as 
                provided under subparagraph (B) before the end 
                of such 10-year period, the rehabilitation 
                period shall end with the plan year preceding 
                the plan year for which the determination under 
                subparagraph (B) is made.
                  (B) Emergence.--
                          (i) In general.--A plan in critical 
                        status shall remain in such status 
                        until a plan year for which the plan 
                        actuary certifies, in accordance with 
                        subsection (b)(3)(A), that--
                                  (I) the plan is not described 
                                in one or more of the 
                                subparagraphs in subsection 
                                (b)(2) as of the beginning of 
                                the plan year;
                                  (II) the plan is not 
                                projected to have an 
                                accumulated funding deficiency 
                                for the plan year or any of the 
                                9 succeeding plan years, 
                                without regard to the use of 
                                the shortfall method but taking 
                                into account any extension of 
                                amortization periods under 
                                section 304(d)(2) or section 
                                304 (as in effect prior to the 
                                enactment of the Pension 
                                Protection Act of 2006); and
                                  (III) the plan is not 
                                projected to become insolvent 
                                within the meaning of section 
                                4245 for any of the 30 
                                succeeding plan years.
                          (ii) Plans with certain amortization 
                        extensions.--
                                  (I) Special emergence rule.--
                                Notwithstanding clause (i), a 
                                plan in critical status that 
                                has an automatic extension of 
                                amortization periods under 
                                section 304(d)(1) shall no 
                                longer be in critical status if 
                                the plan actuary certifies for 
                                a plan year, in accordance with 
                                subsection (b)(3)(A), that--
                                          (aa) the plan is not 
                                        projected to have an 
                                        accumulated funding 
                                        deficiency for the plan 
                                        year or any of the 9 
                                        succeeding plan years, 
                                        without regard to the 
                                        use of the shortfall 
                                        method but taking into 
                                        account any extension 
                                        of amortization periods 
                                        under section 
                                        304(d)(1); and
                                          (bb) the plan is not 
                                        projected to become 
                                        insolvent within the 
                                        meaning of section 4245 
                                        for any of the 30 
                                        succeeding plan years,
                                regardless of whether the plan 
                                is described in one or more of 
                                the subparagraphs in subsection 
                                (b)(2) as of the beginning of 
                                the plan year.
                                  (II) Reentry into critical 
                                status.--A plan that emerges 
                                from critical status under 
                                subclause (I) shall not reenter 
                                critical status for any 
                                subsequent plan year unless--
                                          (aa) the plan is 
                                        projected to have an 
                                        accumulated funding 
                                        deficiency for the plan 
                                        year or any of the 9 
                                        succeeding plan years, 
                                        without regard to the 
                                        use of the shortfall 
                                        method but taking into 
                                        account any extension 
                                        of amortization periods 
                                        under section 304(d); 
                                        or
                                          (bb) the plan is 
                                        projected to become 
                                        insolvent within the 
                                        meaning of section 4245 
                                        for any of the 30 
                                        succeeding plan years.
          (5) Rehabilitation plan adoption period.--For 
        purposes of this section, the term ``rehabilitation 
        plan adoption period'' means the period beginning on 
        the date of the certification under subsection 
        (b)(3)(A) for the initial critical year and ending on 
        the day before the first day of the rehabilitation 
        period.
          (6) Limitation on reduction in rates of future 
        accruals.--Any reduction in the rate of future accruals 
        under the default schedule described in the last 
        sentence of paragraph (1) shall not reduce the rate of 
        future accruals below--
                  (A) a monthly benefit (payable as a single 
                life annuity commencing at the participant's 
                normal retirement age) equal to 1 percent of 
                the contributions required to be made with 
                respect to a participant, or the equivalent 
                standard accrual rate for a participant or 
                group of participants under the collective 
                bargaining agreements in effect as of the first 
                day of the initial critical year, or
                  (B) if lower, the accrual rate under the plan 
                on such first day.
        The equivalent standard accrual rate shall be 
        determined by the plan sponsor based on the standard or 
        average contribution base units which the plan sponsor 
        determines to be representative for active participants 
        and such other factors as the plan sponsor determines 
        to be relevant. Nothing in this paragraph shall be 
        construed as limiting the ability of the plan sponsor 
        to prepare and provide the bargaining parties with 
        alternative schedules to the default schedule that 
        establish lower or higher accrual and contribution 
        rates than the rates otherwise described in this 
        paragraph.
          (7) Automatic employer surcharge.--
                  (A) Imposition of surcharge.--Each employer 
                otherwise obligated to make contributions for 
                the initial critical year shall be obligated to 
                pay to the plan for such year a surcharge equal 
                to 5 percent of the contributions otherwise 
                required under the applicable collective 
                bargaining agreement (or other agreement 
                pursuant to which the employer contributes). 
                For each succeeding plan year in which the plan 
                is in critical status for a consecutive period 
                of years beginning with the initial critical 
                year, the surcharge shall be 10 percent of the 
                contributions otherwise so required.
                  (B) Enforcement of surcharge.--The surcharges 
                under subparagraph (A) shall be due and payable 
                on the same schedule as the contributions on 
                which the surcharges are based. Any failure to 
                make a surcharge payment shall be treated as a 
                delinquent contribution under section 515 and 
                shall be enforceable as such.
                  (C) Surcharge to terminate upon collective 
                bargaining agreement renegotiation.--The 
                surcharge under this paragraph shall cease to 
                be effective with respect to employees covered 
                by a collective bargaining agreement (or other 
                agreement pursuant to which the employer 
                contributes), beginning on the effective date 
                of a collective bargaining agreement (or other 
                such agreement) that includes terms consistent 
                with a schedule presented by the plan sponsor 
                under paragraph (1)(B)(i), as modified under 
                subparagraph (B) of paragraph (3).
                  (D) Surcharge not to apply until employer 
                receives notice.--The surcharge under this 
                paragraph shall not apply to an employer until 
                30 days after the employer has been notified by 
                the plan sponsor that the plan is in critical 
                status and that the surcharge is in effect.
                  (E) Surcharge not to generate increased 
                benefit accruals.--Notwithstanding any 
                provision of a plan to the contrary, the amount 
                of any surcharge under this paragraph shall not 
                be the basis for any benefit accrual under the 
                plan.
          (8) Benefit adjustments.--
                  (A) Adjustable benefits.--
                          (i) In general.--Notwithstanding 
                        section 204(g), the plan sponsor shall, 
                        subject to the notice requirements in 
                        subparagraph (C), make any reductions 
                        to adjustable benefits which the plan 
                        sponsor deems appropriate, based upon 
                        the outcome of collective bargaining 
                        over the schedule or schedules provided 
                        under paragraph (1)(B)(i).
                          (ii) Exception for retirees.--Except 
                        in the case of adjustable benefits 
                        described in clause (iv)(III), the plan 
                        sponsor of a plan in critical status 
                        shall not reduce adjustable benefits of 
                        any participant or beneficiary whose 
                        benefit commencement date is before the 
                        date on which the plan provides notice 
                        to the participant or beneficiary under 
                        subsection (b)(3)(D) for the initial 
                        critical year.
                          (iii) Plan sponsor flexibility.--The 
                        plan sponsor shall include in the 
                        schedules provided to the bargaining 
                        parties an allowance for funding the 
                        benefits of participants with respect 
                        to whom contributions are not currently 
                        required to be made, and shall reduce 
                        their benefits to the extent permitted 
                        under this title and considered 
                        appropriate by the plan sponsor based 
                        on the plan's then current overall 
                        funding status.
                          (iv) Adjustable benefit defined.--For 
                        purposes of this paragraph, the term 
                        ``adjustable benefit'' means--
                                  (I) benefits, rights, and 
                                features under the plan, 
                                including post-retirement death 
                                benefits, 60-month guarantees, 
                                disability benefits not yet in 
                                pay status, and similar 
                                benefits,
                                  (II) any early retirement 
                                benefit or retirement-type 
                                subsidy (within the meaning of 
                                section 204(g)(2)(A)) and any 
                                benefit payment option (other 
                                than the qualified joint and 
                                survivor annuity), and
                                  (III) benefit increases that 
                                would not be eligible for a 
                                guarantee under section 4022A 
                                on the first day of initial 
                                critical year because the 
                                increases were adopted (or, if 
                                later, took effect) less than 
                                60 months before such first 
                                day.
                  (B) Normal retirement benefits protected.--
                Except as provided in subparagraph 
                (A)(iv)(III), nothing in this paragraph shall 
                be construed to permit a plan to reduce the 
                level of a participant's accrued benefit 
                payable at normal retirement age.
                  (C) Notice requirements.--
                          (i) In general.--No reduction may be 
                        made to adjustable benefits under 
                        subparagraph (A) unless notice of such 
                        reduction has been given at least 30 
                        days before the general effective date 
                        of such reduction for all participants 
                        and beneficiaries to--
                                  (I) plan participants and 
                                beneficiaries,
                                  (II) each employer who has an 
                                obligation to contribute 
                                (within the meaning of section 
                                4212(a)) under the plan, and
                                  (III) each employee 
                                organization which, for 
                                purposes of collective 
                                bargaining, represents plan 
                                participants employed by such 
                                an employer.
                          (ii) Content of notice.--The notice 
                        under clause (i) shall contain--
                                  (I) sufficient information to 
                                enable participants and 
                                beneficiaries to understand the 
                                effect of any reduction on 
                                their benefits, including an 
                                estimate (on an annual or 
                                monthly basis) of any affected 
                                adjustable benefit that a 
                                participant or beneficiary 
                                would otherwise have been 
                                eligible for as of the general 
                                effective date described in 
                                clause (i), and
                                  (II) information as to the 
                                rights and remedies of plan 
                                participants and beneficiaries 
                                as well as how to contact the 
                                Department of Labor for further 
                                information and assistance 
                                where appropriate.
                          (iii) Form and manner.--Any notice 
                        under clause (i)--
                                  (I) shall be provided in a 
                                form and manner prescribed in 
                                regulations of the Secretary of 
                                the Treasury, in consultation 
                                with the Secretary,
                                  (II) shall be written in a 
                                manner so as to be understood 
                                by the average plan 
                                participant, and
                                  (III) may be provided in 
                                written, electronic, or other 
                                appropriate form to the extent 
                                such form is reasonably 
                                accessible to persons to whom 
                                the notice is required to be 
                                provided.
                        The Secretary of the Treasury shall in 
                        the regulations prescribed under 
                        subclause (I) establish a model notice 
                        that a plan sponsor may use to meet the 
                        requirements of this subparagraph.
          (9) Benefit suspensions for multiemployer plans in 
        critical and declining status.--
                  (A) In general.--Notwithstanding section 
                204(g) and subject to subparagraphs (B) through 
                (I), the plan sponsor of a plan in critical and 
                declining status may, by plan amendment, 
                suspend benefits which the sponsor deems 
                appropriate.
                  (B) Suspension of benefits.--
                          (i) Suspension of benefits defined.--
                        For purposes of this subsection, the 
                        term ``suspension of benefits'' means 
                        the temporary or permanent reduction of 
                        any current or future payment 
                        obligation of the plan to any 
                        participant or beneficiary under the 
                        plan, whether or not in pay status at 
                        the time of the suspension of benefits.
                          (ii) Length of suspensions.--Any 
                        suspension of benefits made under 
                        subparagraph (A) shall remain in effect 
                        until the earlier of when the plan 
                        sponsor provides benefit improvements 
                        in accordance with subparagraph (E) or 
                        the suspension of benefits expires by 
                        its own terms.
                          (iii) No liability.--The plan shall 
                        not be liable for any benefit payments 
                        not made as a result of a suspension of 
                        benefits under this paragraph.
                          (iv) Applicability.--For purposes of 
                        this paragraph, all references to 
                        suspensions of benefits, increases in 
                        benefits, or resumptions of suspended 
                        benefits with respect to participants 
                        shall also apply with respect to 
                        benefits of beneficiaries or 
                        alternative payees of participants.
                          (v) Retiree representative.--
                                  (I) In general.--In the case 
                                of a plan with 10,000 or more 
                                participants, not later than 60 
                                days prior to the plan sponsor 
                                submitting an application to 
                                suspend benefits, the plan 
                                sponsor shall select a 
                                participant of the plan in pay 
                                status to act as a retiree 
                                representative. The retiree 
                                representative shall advocate 
                                for the interests of the 
                                retired and deferred vested 
                                participants and beneficiaries 
                                of the plan throughout the 
                                suspension approval process.
                                  (II) Reasonable expenses from 
                                plan.--The plan shall provide 
                                for reasonable expenses by the 
                                retiree representative, 
                                including reasonable legal and 
                                actuarial support, commensurate 
                                with the plan's size and funded 
                                status.
                                  (III) Special rule relating 
                                to fiduciary status.--Duties 
                                performed pursuant to subclause 
                                (I) shall not be subject to 
                                section 404(a). The preceding 
                                sentence shall not apply to 
                                those duties associated with an 
                                application to suspend benefits 
                                pursuant to subparagraph (G) 
                                that are performed by the 
                                retiree representative who is 
                                also a plan trustee.
                  (C) Conditions for suspensions.--The plan 
                sponsor of a plan in critical and declining 
                status for a plan year may suspend benefits 
                only if the following conditions are met:
                          (i) Taking into account the proposed 
                        suspensions of benefits (and, if 
                        applicable, a proposed partition of the 
                        plan under section 4233), the plan 
                        actuary certifies that the plan is 
                        projected to avoid insolvency within 
                        the meaning of section 4245, assuming 
                        the suspensions of benefits continue 
                        until the suspensions of benefits 
                        expire by their own terms or if no such 
                        expiration date is set, indefinitely.
                          (ii) The plan sponsor determines, in 
                        a written record to be maintained 
                        throughout the period of the benefit 
                        suspension, that the plan is still 
                        projected to become insolvent unless 
                        benefits are suspended under this 
                        paragraph, although all reasonable 
                        measures to avoid insolvency have been 
                        taken (and continue to be taken during 
                        the period of the benefit suspension). 
                        In its determination, the plan sponsor 
                        may take into account factors including 
                        the following:
                                  (I) Current and past 
                                contribution levels.
                                  (II) Levels of benefit 
                                accruals (including any prior 
                                reductions in the rate of 
                                benefit accruals).
                                  (III) Prior reductions (if 
                                any) of adjustable benefits.
                                  (IV) Prior suspensions (if 
                                any) of benefits under this 
                                subsection.
                                  (V) The impact on plan 
                                solvency of the subsidies and 
                                ancillary benefits available to 
                                active participants.
                                  (VI) Compensation levels of 
                                active participants relative to 
                                employees in the participants' 
                                industry generally.
                                  (VII) Competitive and other 
                                economic factors facing 
                                contributing employers.
                                  (VIII) The impact of benefit 
                                and contribution levels on 
                                retaining active participants 
                                and bargaining groups under the 
                                plan.
                                  (IX) The impact of past and 
                                anticipated contribution 
                                increases under the plan on 
                                employer attrition and 
                                retention levels.
                                  (X) Measures undertaken by 
                                the plan sponsor to retain or 
                                attract contributing employers.
                  (D) Limitations on suspensions.--Any 
                suspensions of benefits made by a plan sponsor 
                pursuant to this paragraph shall be subject to 
                the following limitations:
                          (i) The monthly benefit of any 
                        participant or beneficiary may not be 
                        reduced below 110 percent of the 
                        monthly benefit which is guaranteed by 
                        the Pension Benefit Guaranty 
                        Corporation under section 4022A on the 
                        date of the suspension.
                          (ii)(I) In the case of a participant 
                        or beneficiary who has attained 75 
                        years of age as of the effective date 
                        of the suspension, not more than the 
                        applicable percentage of the maximum 
                        suspendable benefits of such 
                        participant or beneficiary may be 
                        suspended under this paragraph.
                          (II) For purposes of subclause (I), 
                        the maximum suspendable benefits of a 
                        participant or beneficiary is the 
                        portion of the benefits of such 
                        participant or beneficiary that would 
                        be suspended pursuant to this paragraph 
                        without regard to this clause;
                          (III) For purposes of subclause (I), 
                        the applicable percentage is a 
                        percentage equal to the quotient 
                        obtained by dividing--
                                  (aa) the number of months 
                                during the period beginning 
                                with the month after the month 
                                in which occurs the effective 
                                date of the suspension and 
                                ending with the month during 
                                which the participant or 
                                beneficiary attains the age of 
                                80, by
                                  (bb) 60 months.
                          (iii) No benefits based on disability 
                        (as defined under the plan) may be 
                        suspended under this paragraph.
                          (iv) Any suspensions of benefits, in 
                        the aggregate (and, if applicable, 
                        considered in combination with a 
                        partition of the plan under section 
                        4233), shall be reasonably estimated to 
                        achieve, but not materially exceed, the 
                        level that is necessary to avoid 
                        insolvency.
                          (v) In any case in which a suspension 
                        of benefits with respect to a plan is 
                        made in combination with a partition of 
                        the plan under section 4233, the 
                        suspension of benefits may not take 
                        effect prior to the effective date of 
                        such partition.
                          (vi) Any suspensions of benefits 
                        shall be equitably distributed across 
                        the participant and beneficiary 
                        population, taking into account 
                        factors, with respect to participants 
                        and beneficiaries and their benefits, 
                        that may include one or more of the 
                        following:
                                  (I) Age and life expectancy.
                                  (II) Length of time in pay 
                                status.
                                  (III) Amount of benefit.
                                  (IV) Type of benefit: 
                                survivor, normal retirement, 
                                early retirement.
                                  (V) Extent to which 
                                participant or beneficiary is 
                                receiving a subsidized benefit.
                                  (VI) Extent to which 
                                participant or beneficiary has 
                                received post-retirement 
                                benefit increases.
                                  (VII) History of benefit 
                                increases and reductions.
                                  (VIII) Years to retirement 
                                for active employees.
                                  (IX) Any discrepancies 
                                between active and retiree 
                                benefits.
                                  (X) Extent to which active 
                                participants are reasonably 
                                likely to withdraw support for 
                                the plan, accelerating employer 
                                withdrawals from the plan and 
                                increasing the risk of 
                                additional benefit reductions 
                                for participants in and out of 
                                pay status.
                                  (XI) Extent to which benefits 
                                are attributed to service with 
                                an employer that failed to pay 
                                its full withdrawal liability.
                          (vii) In the case of a plan that 
                        includes the benefits described in 
                        clause (III), benefits suspended under 
                        this paragraph shall--
                                  (I) first, be applied to the 
                                maximum extent permissible to 
                                benefits attributable to a 
                                participant's service for an 
                                employer which withdrew from 
                                the plan and failed to pay (or 
                                is delinquent with respect to 
                                paying) the full amount of its 
                                withdrawal liability under 
                                section 4201(b)(1) or an 
                                agreement with the plan,
                                  (II) second, except as 
                                provided by subclause (III), be 
                                applied to all other benefits 
                                that may be suspended under 
                                this paragraph, and
                                  (III) third, be applied to 
                                benefits under a plan that are 
                                directly attributable to a 
                                participant's service with any 
                                employer which has, prior to 
                                the date of enactment of the 
                                Multiemployer Pension Reform 
                                Act of 2014--
                                          (aa) withdrawn from 
                                        the plan in a complete 
                                        withdrawal under 
                                        section 4203 and has 
                                        paid the full amount of 
                                        the employer's 
                                        withdrawal liability 
                                        under section 
                                        4201(b)(1) or an 
                                        agreement with the 
                                        plan, and
                                          (bb) pursuant to a 
                                        collective bargaining 
                                        agreement, assumed 
                                        liability for providing 
                                        benefits to 
                                        participants and 
                                        beneficiaries of the 
                                        plan under a separate, 
                                        single-employer plan 
                                        sponsored by the 
                                        employer, in an amount 
                                        equal to any amount of 
                                        benefits for such 
                                        participants and 
                                        beneficiaries reduced 
                                        as a result of the 
                                        financial status of the 
                                        plan.
                  (E) Benefit improvements.--
                          (i) In general.--The plan sponsor 
                        may, in its sole discretion, provide 
                        benefit improvements while any 
                        suspension of benefits under the plan 
                        remains in effect, except that the plan 
                        sponsor may not increase the 
                        liabilities of the plan by reason of 
                        any benefit improvement for any 
                        participant or beneficiary not in pay 
                        status by the first day of the plan 
                        year for which the benefit improvement 
                        takes effect, unless--
                                  (I) such action is 
                                accompanied by equitable 
                                benefit improvements in 
                                accordance with clause (ii) for 
                                all participants and 
                                beneficiaries whose benefit 
                                commencement dates were before 
                                the first day of the plan year 
                                for which the benefit 
                                improvement for such 
                                participant or beneficiary not 
                                in pay status took effect; and
                                  (II) the plan actuary 
                                certifies that after taking 
                                into account such benefits 
                                improvements the plan is 
                                projected to avoid insolvency 
                                indefinitely under section 
                                4245.
                          (ii) Equitable distribution of 
                        benefit improvements.--
                                  (I) Limitation.--The 
                                projected value of the total 
                                liabilities for benefit 
                                improvements for participants 
                                and beneficiaries not in pay 
                                status by the date of the first 
                                day of the plan year in which 
                                the benefit improvements are 
                                proposed to take effect, as 
                                determined as of such date, may 
                                not exceed the projected value 
                                of the liabilities arising from 
                                benefit improvements for 
                                participants and beneficiaries 
                                with benefit commencement dates 
                                prior to the first day of such 
                                plan year, as so determined.
                                  (II) Equitable distribution 
                                of benefits.--The plan sponsor 
                                shall equitably distribute any 
                                increase in total liabilities 
                                for benefit improvements in 
                                clause (i) to some or all of 
                                the participants and 
                                beneficiaries whose benefit 
                                commencement date is before the 
                                date of the first day of the 
                                plan year in which the benefit 
                                improvements are proposed to 
                                take effect, taking into 
                                account the relevant factors 
                                described in subparagraph 
                                (D)(vi) and the extent to which 
                                the benefits of the 
                                participants and beneficiaries 
                                were suspended.
                          (iii) Special rule for resumptions of 
                        benefits only for participants in pay 
                        status.--The plan sponsor may increase 
                        liabilities of the plan through a 
                        resumption of benefits for participants 
                        and beneficiaries in pay status only if 
                        the plan sponsor equitably distributes 
                        the value of resumed benefits to some 
                        or all of the participants and 
                        beneficiaries in pay status, taking 
                        into account the relevant factors 
                        described in subparagraph (D)(vi).
                          (iv) Special rule for certain benefit 
                        increases.--This subparagraph shall not 
                        apply to a resumption of suspended 
                        benefits or plan amendment which 
                        increases liabilities with respect to 
                        participants and beneficiaries not in 
                        pay status by the first day of the plan 
                        year in which the benefit improvements 
                        took effect which--
                                  (I) the Secretary of the 
                                Treasury, in consultation with 
                                the Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor, determines to be 
                                reasonable and which provides 
                                for only de minimis increases 
                                in the liabilities of the plan, 
                                or
                                  (II) is required as a 
                                condition of qualification 
                                under part I of subchapter D of 
                                chapter 1 of subtitle A of the 
                                Internal Revenue Code of 1986 
                                or to comply with other 
                                applicable law, as determined 
                                by the Secretary of the 
                                Treasury.
                          (v) Additional limitations.--Except 
                        for resumptions of suspended benefits 
                        described in clause (iii), the 
                        limitations on benefit improvements 
                        while a suspension of benefits is in 
                        effect under this paragraph shall be in 
                        addition to any other applicable 
                        limitations on increases in benefits 
                        imposed on a plan.
                          (vi) Definition of benefit 
                        improvement.--For purposes of this 
                        subparagraph, the term ``benefit 
                        improvement'' means, with respect to a 
                        plan, a resumption of suspended 
                        benefits, an increase in benefits, an 
                        increase in the rate at which benefits 
                        accrue, or an increase in the rate at 
                        which benefits become nonforfeitable 
                        under the plan.
                  (F) Notice requirements.--
                          (i) In general.--No suspension of 
                        benefits may be made pursuant to this 
                        paragraph unless notice of such 
                        proposed suspension has been given by 
                        the plan sponsor concurrently with an 
                        application for approval of such 
                        suspension submitted under subparagraph 
                        (G) to the Secretary of the Treasury 
                        to--
                                  (I) such plan participants 
                                and beneficiaries who may be 
                                contacted by reasonable 
                                efforts,
                                  (II) each employer who has an 
                                obligation to contribute 
                                (within the meaning of section 
                                4212(a)) under the plan, and
                                  (III) each employee 
                                organization which, for 
                                purposes of collective 
                                bargaining, represents plan 
                                participants employed by such 
                                an employer.
                          (ii) Content of notice.--The notice 
                        under clause (i) shall contain--
                                  (I) sufficient information to 
                                enable participants and 
                                beneficiaries to understand the 
                                effect of any suspensions of 
                                benefits, including an 
                                individualized estimate (on an 
                                annual or monthly basis) of 
                                such effect on each participant 
                                or beneficiary,
                                  (II) a description of the 
                                factors considered by the plan 
                                sponsor in designing the 
                                benefit suspensions,
                                  (III) a statement that the 
                                application for approval of any 
                                suspension of benefits shall be 
                                available on the website of the 
                                Department of the Treasury and 
                                that comments on such 
                                application will be accepted,
                                  (IV) information as to the 
                                rights and remedies of plan 
                                participants and beneficiaries,
                                  (V) if applicable, a 
                                statement describing the 
                                appointment of a retiree 
                                representative, the date of 
                                appointment of such 
                                representative, identifying 
                                information about the retiree 
                                representative (including 
                                whether the representative is a 
                                plan trustee), and how to 
                                contact such representative, 
                                and
                                  (VI) information on how to 
                                contact the Department of the 
                                Treasury for further 
                                information and assistance 
                                where appropriate.
                          (iii) Form and manner.--Any notice 
                        under clause (i)--
                                  (I) shall be provided in a 
                                form and manner prescribed in 
                                guidance by the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, 
                                notwithstanding any other 
                                provision of law,
                                  (II) shall be written in a 
                                manner so as to be understood 
                                by the average plan 
                                participant, and
                                  (III) may be provided in 
                                written, electronic, or other 
                                appropriate form to the extent 
                                such form is reasonably 
                                accessible to persons to whom 
                                the notice is required to be 
                                provided.
                          (iv) Other notice requirement.--Any 
                        notice provided under clause (i) shall 
                        fulfill the requirement for notice of a 
                        significant reduction in benefits 
                        described in section 204(h).
                          (v) Model notice.--The Secretary of 
                        the Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall in 
                        the guidance prescribed under clause 
                        (iii)(I) establish a model notice that 
                        a plan sponsor may use to meet the 
                        requirements of this subparagraph.
                  (G) Approval process by the secretary of the 
                treasury in consultation with the pension 
                benefit guaranty corporation and the secretary 
                of labor.--
                          (i) In general.--The plan sponsor of 
                        a plan in critical and declining status 
                        for a plan year that seeks to suspend 
                        benefits must submit an application to 
                        the Secretary of the Treasury for 
                        approval of the suspensions of 
                        benefits. If the plan sponsor submits 
                        an application for approval of the 
                        suspensions, the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        approve the application upon finding 
                        that the plan is eligible for the 
                        suspensions and has satisfied the 
                        criteria of subparagraphs (C), (D), 
                        (E), and (F).
                          (ii) Solicitation of comments.--Not 
                        later than 30 days after receipt of the 
                        application under clause (i), the 
                        Secretary of the Treasury, in 
                        consultation with the Pension Benefit 
                        Guaranty Corporation and the Secretary 
                        of Labor, shall publish a notice in the 
                        Federal Register soliciting comments 
                        from contributing employers, employee 
                        organizations, and participants and 
                        beneficiaries of the plan for which an 
                        application was made and other 
                        interested parties. The application for 
                        approval of the suspension of benefits 
                        shall be published on the website of 
                        the Secretary of the Treasury.
                          (iii) Required action; deemed 
                        approval.--The Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        approve or deny any application for 
                        suspensions of benefits under this 
                        paragraph within 225 days after the 
                        submission of such application. An 
                        application for suspension of benefits 
                        shall be deemed approved unless, within 
                        such 225 days, the Secretary of the 
                        Treasury notifies the plan sponsor that 
                        it has failed to satisfy one or more of 
                        the criteria described in this 
                        paragraph. If the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, rejects a 
                        plan sponsor's application, the 
                        Secretary of the Treasury shall provide 
                        notice to the plan sponsor detailing 
                        the specific reasons for the rejection, 
                        including reference to the specific 
                        requirement not satisfied. Approval or 
                        denial by the Secretary of the Treasury 
                        of an application shall be treated as a 
                        final agency action for purposes of 
                        section 704 of title 5, United States 
                        Code.
                          (iv) Agency review.--In evaluating 
                        whether the plan sponsor has met the 
                        criteria specified in clause (ii) of 
                        subparagraph (C), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        review the plan sponsor's consideration 
                        of factors under such clause.
                          (v) Standard for accepting plan 
                        sponsor determinations.--In evaluating 
                        the plan sponsor's application, the 
                        Secretary of the Treasury shall accept 
                        the plan sponsor's determinations 
                        unless it concludes, in consultation 
                        with the Pension Benefit Guaranty 
                        Corporation and the Secretary of Labor, 
                        that the plan sponsor's determinations 
                        were clearly erroneous.
                  (H) Participant ratification process.--
                          (i) In general.--No suspension of 
                        benefits may take effect pursuant to 
                        this paragraph prior to a vote of the 
                        participants of the plan with respect 
                        to the suspension.
                          (ii) Administration of vote.--Not 
                        later than 30 days after approval of 
                        the suspension by the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, under 
                        subparagraph (G), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall 
                        administer a vote of participants and 
                        beneficiaries of the plan. Except as 
                        provided in clause (v), the suspension 
                        shall go into effect following the vote 
                        unless a majority of all participants 
                        and beneficiaries of the plan vote to 
                        reject the suspension. The plan sponsor 
                        may submit a new suspension application 
                        to the Secretary of the Treasury for 
                        approval in any case in which a 
                        suspension is prohibited from taking 
                        effect pursuant to a vote under this 
                        subparagraph.
                          (iii) Ballots.--The plan sponsor 
                        shall provide a ballot for the vote 
                        (subject to approval by the Secretary 
                        of the Treasury, in consultation with 
                        the Pension Benefit Guaranty 
                        Corporation and the Secretary of Labor) 
                        that includes the following:
                                  (I) A statement from the plan 
                                sponsor in support of the 
                                suspension.
                                  (II) A statement in 
                                opposition to the suspension 
                                compiled from comments received 
                                pursuant to subparagraph 
                                (G)(ii).
                                  (III) A statement that the 
                                suspension has been approved by 
                                the Secretary of the Treasury, 
                                in consultation with the 
                                Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor.
                                  (IV) A statement that the 
                                plan sponsor has determined 
                                that the plan will become 
                                insolvent unless the suspension 
                                takes effect.
                                  (V) A statement that 
                                insolvency of the plan could 
                                result in benefits lower than 
                                benefits paid under the 
                                suspension.
                                  (VI) A statement that 
                                insolvency of the Pension 
                                Benefit Guaranty Corporation 
                                would result in benefits lower 
                                than benefits paid in the case 
                                of plan insolvency.
                          (iv) Communication by plan sponsor.--
                        It is the sense of Congress that, 
                        depending on the size and resources of 
                        the plan and geographic distribution of 
                        the plan's participants, the plan 
                        sponsor should take such steps as may 
                        be necessary to inform participants 
                        about proposed benefit suspensions 
                        through in-person meetings, telephone 
                        or internet-based communications, 
                        mailed information, or by other means.
                          (v) Systemically important plans.--
                                  (I) In general.--Not later 
                                than 14 days after a vote under 
                                this subparagraph rejecting a 
                                suspension, the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, shall 
                                determine whether the plan is a 
                                systemically important plan. If 
                                the Secretary of the Treasury, 
                                in consultation with the 
                                Pension Benefit Guaranty 
                                Corporation and the Secretary 
                                of Labor, determines that the 
                                plan is a systemically 
                                important plan, not later than 
                                the end of the 90-day period 
                                beginning on the date the 
                                results of the vote are 
                                certified, the Secretary of the 
                                Treasury shall, notwithstanding 
                                such adverse vote--
                                          (aa) permit the 
                                        implementation of the 
                                        suspension proposed by 
                                        the plan sponsor; or
                                          (bb) permit the 
                                        implementation of a 
                                        modification by the 
                                        Secretary of the 
                                        Treasury, in 
                                        consultation with the 
                                        Pension Benefit 
                                        Guaranty Corporation 
                                        and the Secretary of 
                                        Labor, of such 
                                        suspension (so long as 
                                        the plan is projected 
                                        to avoid insolvency 
                                        within the meaning of 
                                        section 4245 under such 
                                        modification).
                                  (II) Recommendations.--Not 
                                later than 30 days after a 
                                determination by the Secretary 
                                of the Treasury, in 
                                consultation with the Pension 
                                Benefit Guaranty Corporation 
                                and the Secretary of Labor, 
                                that the plan is systemically 
                                important, the Participant and 
                                Plan Sponsor Advocate selected 
                                under section 4004 may submit 
                                recommendations to the 
                                Secretary of the Treasury with 
                                respect to the suspension or 
                                any revisions to the 
                                suspension.
                                  (III) Systemically important 
                                plan defined.--
                                          (aa) In general.--For 
                                        purposes of this 
                                        subparagraph, a 
                                        systemically important 
                                        plan is a plan with 
                                        respect to which the 
                                        Pension Benefit 
                                        Guaranty Corporation 
                                        projects the present 
                                        value of projected 
                                        financial assistance 
                                        payments exceeds 
                                        $1,000,000,000 if 
                                        suspensions are not 
                                        implemented.
                                          (bb) Indexing.--For 
                                        calendar years 
                                        beginning after 2015, 
                                        there shall be 
                                        substituted for the 
                                        dollar amount specified 
                                        in item (aa) an amount 
                                        equal to the product of 
                                        such dollar amount and 
                                        a fraction, the 
                                        numerator of which is 
                                        the contribution and 
                                        benefit base 
                                        (determined under 
                                        section 230 of the 
                                        Social Security Act) 
                                        for the preceding 
                                        calendar year and the 
                                        denominator of which is 
                                        such contribution and 
                                        benefit base for 
                                        calendar year 2014. If 
                                        the amount otherwise 
                                        determined under this 
                                        item is not a multiple 
                                        of $1,000,000, such 
                                        amount shall be rounded 
                                        to the next lowest 
                                        multiple of $1,000,000.
                          (vi) Final authorization to 
                        suspend.--In any case in which a 
                        suspension goes into effect following a 
                        vote pursuant to clause (ii) (or 
                        following a determination under clause 
                        (v) that the plan is a systemically 
                        important plan), the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, shall issue 
                        a final authorization to suspend with 
                        respect to the suspension not later 
                        than 7 days after such vote (or, in the 
                        case of a suspension that goes into 
                        effect under clause (v), at a time 
                        sufficient to allow the implementation 
                        of the suspension prior to the end of 
                        the 90-day period described in clause 
                        (v)(I)).
                  (I) Judicial review.--
                          (i) Denial of application.--An action 
                        by the plan sponsor challenging the 
                        denial of an application for suspension 
                        of benefits by the Secretary of the 
                        Treasury, in consultation with the 
                        Pension Benefit Guaranty Corporation 
                        and the Secretary of Labor, may only be 
                        brought following such denial.
                          (ii) Approval of suspension of 
                        benefits.--
                                  (I) Timing of action.--An 
                                action challenging a suspension 
                                of benefits under this 
                                paragraph may only be brought 
                                following a final authorization 
                                to suspend by the Secretary of 
                                the Treasury, in consultation 
                                with the Pension Benefit 
                                Guaranty Corporation and the 
                                Secretary of Labor, under 
                                subparagraph (H)(vi).
                                  (II) Standards of review.--
                                          (aa) In general.--A 
                                        court shall review an 
                                        action challenging a 
                                        suspension of benefits 
                                        under this paragraph in 
                                        accordance with section 
                                        706 of title 5, United 
                                        States Code.
                                          (bb) Temporary 
                                        injunction.--A court 
                                        reviewing an action 
                                        challenging a 
                                        suspension of benefits 
                                        under this paragraph 
                                        may not grant a 
                                        temporary injunction 
                                        with respect to such 
                                        suspension unless the 
                                        court finds a clear and 
                                        convincing likelihood 
                                        that the plaintiff will 
                                        prevail on the merits 
                                        of the case.
                          (iii) Restricted cause of action.--A 
                        participant or beneficiary affected by 
                        a benefit suspension under this 
                        paragraph shall not have a cause of 
                        action under this title.
                          (iv) Limitation on action to suspend 
                        benefits.--No action challenging a 
                        suspension of benefits following the 
                        final authorization to suspend or the 
                        denial of an application for suspension 
                        of benefits pursuant to this paragraph 
                        may be brought after one year after the 
                        earliest date on which the plaintiff 
                        acquired or should have acquired actual 
                        knowledge of the existence of such 
                        cause of action.
                  (J) Special rule for emergence from critical 
                status.--A plan certified to be in critical and 
                declining status pursuant to projections made 
                under subsection (b)(3) for which a suspension 
                of benefits has been made by the plan sponsor 
                pursuant to this paragraph shall not emerge 
                from critical status under paragraph (4)(B), 
                until such time as--
                          (i) the plan is no longer certified 
                        to be in critical or endangered status 
                        under paragraphs (1) and (2) of 
                        subsection (b), and
                          (ii) the plan is projected to avoid 
                        insolvency under section 4245.
  (f) Rules for Operation of Plan During Adoption and 
Rehabilitation Period.--
          (1) Compliance with rehabilitation plan.--
                  (A) In general.--A plan may not be amended 
                after the date of the adoption of a 
                rehabilitation plan under subsection (e) so as 
                to be inconsistent with the rehabilitation 
                plan.
                  (B) Special rules for benefit increases.--A 
                plan may not be amended after the date of the 
                adoption of a rehabilitation plan under 
                subsection (e) so as to increase benefits, 
                including future benefit accruals, unless the 
                plan actuary certifies that such increase is 
                paid for out of additional contributions not 
                contemplated by the rehabilitation plan, and, 
                after taking into account the benefit increase, 
                the multiemployer plan still is reasonably 
                expected to emerge from critical status by the 
                end of the rehabilitation period on the 
                schedule contemplated in the rehabilitation 
                plan.
          (2) Restriction on lump sums and similar benefits.--
                  (A) In general.--Effective on the date the 
                notice of certification of the plan's critical 
                status for the initial critical year under 
                subsection (b)(3)(D) is sent, and 
                notwithstanding section 204(g), the plan shall 
                not pay--
                          (i) any payment, in excess of the 
                        monthly amount paid under a single life 
                        annuity (plus any social security 
                        supplements described in the last 
                        sentence of section 204(b)(1)(G)), to a 
                        participant or beneficiary whose 
                        annuity starting date (as defined in 
                        section 205(h)(2)) occurs after the 
                        date such notice is sent,
                          (ii) any payment for the purchase of 
                        an irrevocable commitment from an 
                        insurer to pay benefits, and
                          (iii) any other payment specified by 
                        the Secretary of the Treasury by 
                        regulations.
                  (B) Exception.--Subparagraph (A) shall not 
                apply to a benefit which under section 203(e) 
                may be immediately distributed without the 
                consent of the participant or to any makeup 
                payment in the case of a retroactive annuity 
                starting date or any similar payment of 
                benefits owed with respect to a prior period.
          (3) Special rules for plan adoption period.--During 
        the period beginning on the date of the certification 
        under subsection (b)(3)(A) for the initial critical 
        year and ending on the date of the adoption of a 
        rehabilitation plan--
                  (A) the plan sponsor may not accept a 
                collective bargaining agreement or 
                participation agreement with respect to the 
                multiemployer plan that provides for--
                          (i) a reduction in the level of 
                        contributions for any participants,
                          (ii) a suspension of contributions 
                        with respect to any period of service, 
                        or
                          (iii) any new direct or indirect 
                        exclusion of younger or newly hired 
                        employees from plan participation, and
                  (B) no amendment of the plan which increases 
                the liabilities of the plan by reason of any 
                increase in benefits, any change in the accrual 
                of benefits, or any change in the rate at which 
                benefits become nonforfeitable under the plan 
                may be adopted unless the amendment is required 
                as a condition of qualification under part I of 
                subchapter D of chapter 1 of the Internal 
                Revenue Code of 1986 or to comply with other 
                applicable law.
  (g) Adjustments Disregarded in Withdrawal Liability 
Determination.--
          (1) Benefit reduction.--Any benefit reductions under 
        subsection (e)(8) or (f) or benefit reductions or 
        suspensions while in critical and declining status 
        under subsection (e)(9)), unless the withdrawal occurs 
        more than ten years after the effective date of a 
        benefit suspension by a plan in critical and declining 
        status, shall be disregarded in determining a plan's 
        unfunded vested benefits for purposes of determining an 
        employer's withdrawal liability under section 4201.
          (2) Surcharges.--Any surcharges under subsection 
        (e)(7) shall be disregarded in determining the 
        allocation of unfunded vested benefits to an employer 
        under section 4211 and in determining the highest