Emergency Pension Plan Relief Act of 2021
This bill modifies the funding rules and provides financial assistance for certain pension plans that are underfunded or insolvent.
First, the bill expands the authority of, and provides funding for, the Pension Benefit Guaranty Corporation (PBGC) to provide special partition assistance to a multiemployer pension plan that is insolvent or at risk of insolvency. The bill expands eligibility for partition assistance, provides funding for a plan to reach a projected funded ratio of 80% over a 30-year period, and does not require a plan to repay such assistance.
The bill further permits a multiemployer pension plan to elect to retain its funding zone status from the previous year for either (1) the first plan year beginning during the period from March 1, 2020, through February 28, 2021; or (2) the next succeeding plan year, as designated by the plan sponsor. A plan may also extend by five years the funding improvement or rehabilitation period if the plan is designated as in endangered or critical status for a plan year beginning in 2020 or 2021. A plan in critical and declining status may not suspend payment of plan benefits.
Additionally, the bill adjusts the minimum funding standards for a multiemployer pension plan to account for investment losses and other losses related to the COVID-19 pandemic and modifies the PBGC guarantee formula to increase the maximum potential benefits under a multiemployer pension plan.
Finally, the bill makes changes with respect to single employer pension plans, including revising the amortization rules and extending and modifying the pension funding stabilization percentages.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 409 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 409
To provide relief for multiemployer and single employer pension plans,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 21, 2021
Mr. Neal introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide relief for multiemployer and single employer pension plans,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Emergency Pension Plan Relief Act of
2021''.
TITLE I--RELIEF FOR MULTIEMPLOYER PENSION PLANS
SEC. 101. SPECIAL PARTITION RELIEF.
(a) Appropriation.--Section 4005 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1305) is amended by adding at the end
the following:
``(i)(1) An eighth fund shall be established for partition
assistance to multiemployer pension plans, as provided under section
4233A, and to pay for necessary administrative and operating expenses
relating to such assistance.
``(2) There is appropriated from the general fund such amounts as
necessary for the costs of providing partition assistance under section
4233A and necessary administrative and operating expenses. The eighth
fund established under this subsection shall be credited with such
amounts from time to time as the Secretary of the Treasury determines
appropriate, from the general fund of the Treasury, and such amounts
shall remain available until expended.''.
(b) Special Partition Authority.--The Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et seq.) is amended by inserting
after section 4233 the following:
``SEC. 4233A. SPECIAL PARTITION RELIEF.
``(a) Special Partition Authority.--
``(1) In general.--Upon the application of a plan sponsor
of an eligible multiemployer plan for partition of the plan
under this section, the corporation shall order a partition of
the plan in accordance with this section.
``(2) Inapplicability of certain repayment obligation.--A
plan receiving partition assistance pursuant to this section
shall not be subject to repayment obligations under section
4261(b)(2).
``(b) Eligible Plans.--
``(1) In general.--For purposes of this section, a
multiemployer plan is an eligible multiemployer plan if--
``(A) the plan is in critical and declining status
(within the meaning of section 305(b)(6)) in any plan
year beginning in 2020 through 2024;
``(B) a suspension of benefits has been approved
with respect to the plan under section 305(e)(9) as of
the date of the enactment of this section;
``(C) in any plan year beginning in 2020 through
2024, the plan is certified by the plan actuary to be
in critical status (within the meaning of section
305(b)(2)), has a modified funded percentage of less
than 40 percent, and has a ratio of active to inactive
participants which is less than 2 to 3; or
``(D) the plan is insolvent for purposes of section
418E of the Internal Revenue Code of 1986 as of the
date of enactment of this section, if the plan became
insolvent after December 16, 2014, and has not been
terminated by such date of enactment.
``(2) Modified funded percentage.--For purposes of
paragraph (1)(C), 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).
``(c) Applications for Special Partition.--
``(1) Guidance.--The corporation shall issue guidance
setting forth requirements for special partition applications
under this section not later than 120 days after the date of
the enactment of this section. In such guidance, the
corporation shall--
``(A) limit the materials required for a special
partition application to the minimum necessary to make
a determination on the application; and
``(B) provide for an alternate application for
special partition under this section, which may be used
by a plan that has been approved for a partition under
section 4233 before the date of enactment of this
section.
``(2) Temporary priority consideration of applications.--
``(A) In general.--The corporation may specify in
guidance under paragraph (1) that, during the first 2
years following the date of enactment of this section,
special partition applications will be provided
priority consideration, if--
``(i) the plan is likely to become
insolvent within 5 years of the date of
enactment of this section;
``(ii) the corporation projects a plan to
have a present value of financial assistance
payments under section 4261 that exceeds
$1,000,000,000 if the special partition is not
ordered;
``(iii) the plan has implemented benefit
suspensions under section 305(e)(9) as of the
date of the enactment of this section; or
``(iv) the corporation determines it
appropriate based on other circumstances.
``(B) No effect on amount of assistance.--A plan
that is approved for special partition assistance under
this section shall not receive reduced special
partition assistance on account of not receiving
priority consideration under subparagraph (A).
``(3) Actuarial assumptions and other information.--The
corporation shall accept assumptions incorporated in a
multiemployer plan's determination that it is in critical
status or critical and declining status (within the meaning of
section 305(b)), or that the plan's modified funded percentage
is less than 40 percent, unless such assumptions are clearly
erroneous. The corporation may require such other information
as the corporation determines appropriate for making a
determination of eligibility and the amount of special
partition assistance necessary under this section.
``(4) Application deadline.--Any application by a plan for
special partition assistance under this section shall be
submitted no later than December 31, 2026, and any revised
application for special partition assistance shall be submitted
no later than December 31, 2027.
``(5) Notice of application.--Not later than 120 days after
the date of enactment of this section, the corporation shall
issue guidance requiring multiemployer plans to notify
participants and beneficiaries that the plan has applied for
partition under this section, after the corporation has
determined that the application is complete. Such notice shall
reference the special partition relief internet website
described in subsection (p).
``(d) Determinations on Applications.--A plan's application for
special partition under this section that is timely filed in accordance
with guidance issued under subsection (c)(1) shall be deemed approved
and the corporation shall issue a special partition order unless the
corporation notifies the plan within 120 days of the filing of the
application that the application is incomplete or the plan is not
eligible under this section. Such notice shall specify the reasons the
plan is ineligible for a special partition or information needed to
complete the application. If a plan is denied partition under this
subsection, the plan may submit a revised application under this
section. Any revised application for special partition submitted by a
plan shall be deemed approved unless the corporation notifies the plan
within 120 days of the filing of the revised application that the
application is incomplete or the plan is not eligible under this
section. A special partition order issued by the corporation shall be
effective no later than 120 days after a plan's special partition
application is approved by the corporation or deemed approved.
``(e) Amount and Manner of Special Partition Assistance.--
``(1) In general.--The liabilities of an eligible
multiemployer plan that the corporation assumes pursuant to a
special partition order under this section shall be the amount
necessary for the plan to meet its funding goals described in
subsection (g).
``(2) No cap.--Liabilities assumed by the corporation
pursuant to a special partition order under this section shall
not be capped by the guarantee under section 4022A. The
corporation shall have discretion on how liabilities of the
plan are partitioned.
``(f) Successor Plan.--
``(1) In general.--The plan created by a special partition
order under this section is a successor plan to which section
4022A applies.
``(2) Plan sponsor and administrator.--The plan sponsor of
an eligible multiemployer plan prior to the special partition
and the administrator of such plan shall be the plan sponsor
and the administrator, respectively, of the plan created by the
partition.
``(g) Funding Goals.--
``(1) In general.--The funding goals of a multiemployer
plan eligible for partition under this section are both of the
following:
``(A) The plan will remain solvent over 30 years
with no reduction in a participant's or beneficiary's
accrued benefit (except to the extent of a reduction in
accordance with section 305(e)(8) adopted prior to the
plan's application for partition under this section).
``(B) The funded percentage of the plan
(disregarding partitioned benefits) at the end of the
30-year period is projected to be 80 percent.
``(2) Basis.--The funding projections under paragraph (1)
shall be performed on a deterministic basis.
``(h) Restoration of Benefit Suspensions.--An eligible
multiemployer plan that is partitioned under this section shall--
``(1) reinstate any benefits that were suspended under
section 305(e)(9) or section 4245(a), effective as of the first
month the special partition order is effective, for
participants or beneficiaries as of the effective date of the
partition; and
``(2) provide payments equal to the amount of benefits
previously suspended to any participants or beneficiaries in
pay status as of the effective date of the special partition,
payable in the form of a lump sum within 3 months of such
effective date or in equal monthly installments over a period
of 5 years, with no adjustment for interest.
``(i) Adjustment of Special Partition Assistance.--
``(1) In general.--Every 5 years, the corporation shall
adjust the special partition assistance described in subsection
(e) as necessary for the eligible multiemployer plan to satisfy
the funding goals described in subsection (g). If the 30-year
period described in subsection (g) has lapsed, in applying this
paragraph, 5 years shall be substituted for 30 years.
``(2) Submission of information.--An eligible multiemployer
plan that is the subject of a special partition order under
subsection (a) shall submit such information as the corporation
may require to determine the amount of the adjustment under
paragraph (1).
``(3) Cessation of adjustments.--Adjustments under this
subsection with respect to special partition assistance for an
eligible multiemployer plan shall cease and the corporation
shall permanently assume liability for payment of any benefits
transferred to the successor plan (subject to subsection (l))
beginning with the first plan year that the funded percentage
of the eligible multiemployer plan (disregarding partitioned
benefits) is at least 80 percent and the plan's projected
funded percentage for each of the next 10 years is at least 80
percent. Any accumulated funding deficiency of the plan (within
the meaning of section 304(a)) shall be reduced to zero as of
the first day of the plan year for which partition assistance
is permanent under this paragraph.
``(j) Conditions on Plans During Partition.--
``(1) In general.--The corporation may impose, by
regulation, reasonable conditions on an eligible multiemployer
plan that is partitioned under section (a) relating to
increases in future accrual rates and any retroactive benefit
improvements, allocation of plan assets, reductions in employer
contribution rates, diversion of contributions to, and
allocation of, expenses to other retirement plans, and
withdrawal liability.
``(2) Limitations.--The corporation shall not impose
conditions on an eligible multiemployer plan as a condition of
or following receipt of such partition assistance under this
section relating to--
``(A) any reduction in plan benefits (including
benefits that may be adjusted pursuant to section
305(e)(8));
``(B) plan governance, including selection of,
removal of, and terms of contracts with, trustees,
actuaries, investment managers, and other service
providers; or
``(C) any funding rules relating to the plan that
is partitioned under this section.
``(3) Condition.--An eligible multiemployer plan that is
partitioned under subsection (a) shall continue to pay all
premiums due under section 4007 for participants and
beneficiaries in the plan created by a special partition order
until the plan year beginning after a cessation of adjustments
applies under subsection (i).
``(k) Withdrawal Liability.--An employer's withdrawal liability for
purposes of this title shall be calculated taking into account any plan
liabilities that are partitioned under subsection (a) until the plan
year beginning after the expiration of 15 calendar years from the
effective date of the partition.
``(l) Cessation of Partition Assistance.--If a plan that receives
partition assistance under this section becomes insolvent for purposes
of section 418E of the Internal Revenue Code of 1986, the plan shall no
longer be eligible for assistance under this section and shall be
eligible for assistance under section 4261.
``(m) Reporting.--An eligible multiemployer plan that receives
partition assistance under this section shall file with the corporation
a report, including the following information, in such manner (which
may include electronic filing requirements) and at such time as the
corporation requires:
``(1) The funded percentage (as defined in section
305(j)(2)) as of the first day of such plan year, and the
underlying actuarial value of assets and liabilities 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, the payment schedule
with respect to such withdrawal liability, 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 conditions of the
partition assistance.
``(12) Details regarding any funding improvement plan or
rehabilitation plan and updates to such plan.
``(13) The number of participants and beneficiaries during
the plan year preceding such plan year who are active
participants, the number of participants and beneficiaries in
pay status, and the number of terminated vested participants
and beneficiaries.
``(14) The information contained on the most recent annual
funding notice submitted by the plan under section 101(f).
``(15) The information contained on the most recent annual
return under section 6058 of the Internal Revenue Code of 1986
and actuarial report under section 6059 of such Code of the
plan.
``(16) 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, financial reports, and
copies of the portions of collective bargaining agreements
relating to plan contributions, funding coverage, or benefits,
and such other information as the corporation may reasonably
require.
Any information disclosed by a plan to the corporation that could
identify individual employers shall be confidential and not subject to
publication or disclosure.
``(n) Report to Congress.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section and annually thereafter, the board of
directors of the corporation shall submit to the Committee on
Health, Education, Labor, and Pensions and the Committee on
Finance of the Senate and the Committee on Education and Labor
and the Committee on Ways and Means of the House of
Representatives a detailed report on the implementation and
administration of this section. Such report shall include--
``(A) information on the name and number of
multiemployer plans that have applied for partition
assistance under this section;
``(B) the name and number of such plans that have
been approved for partition assistance under this
section and the name and number of the plans that have
not been approved for special partition assistance;
``(C) a detailed rationale for any decision by the
corporation to not approve an application for special
partition assistance;
``(D) the amount of special partition assistance
provided to eligible multiemployer plans (including
amounts provided on an individual plan basis and in the
aggregate);
``(E) the name and number of the multiemployer
plans that restored benefit suspensions and provided
lump sum or monthly installment payments to
participants or beneficiaries;
``(F) the amount of benefits that were restored and
lump sum or monthly installment payments that were paid
(including amounts provided on an individual plan basis
and in the aggregate);
``(G) the name and number of the plans that
received adjustments to partition assistance under
subsection (i);
``(H) a list of, and rationale for, each reasonable
condition imposed by the corporation on plans approved
for special partition assistance under this section;
``(I) the contracts that have been awarded by the
corporation to implement or administer this section;
``(J) the number, purpose, and dollar amounts of
the contracts that have been awarded to implement or
administer the section;
``(K) a detailed summary of the reports required
under subsection (m); and
``(L) a detailed summary of the feedback received
on the pension relief internet website established
under subsection (p).
``(2) PBGC certification.--The board of directors of the
corporation shall include with the report under paragraph (1) a
certification and affirmation that the amount of special
partition assistance provided to each plan under this section
is the amount necessary to meet its funding goals under
subsection (g), including, if applicable, any adjustment of
special partition assistance as determined under subsection
(i).
``(3) Confidentiality.--Congress may publicize the reports
received under paragraph (1) only after redacting all sensitive
or proprietary information.
``(o) GAO Report.--Not later than 1 year after the first partition
application is approved by the corporation under this section, and
biennially thereafter, the Comptroller General of the United States
shall submit to the Committee on Health, Education, Labor, and Pensions
and the Committee on Finance of the Senate and the Committee on
Education and Labor and the Committee on Ways and Means of the House of
Representatives a detailed report on the actions of the corporation to
implement and administer this section, including an examination of the
contracts awarded by such corporation to carry out this section and an
analysis of such corporation's compliance with subsections (e) and (g).
``(p) Special Partition Relief Website.--
``(1) Establishment.--Not later than 120 days after the
date of enactment of this section, the corporation shall
establish and maintain a user-friendly, public-facing internet
website to foster greater accountability and transparency in
the implementation and administration of this section.
``(2) Purpose.--The internet website established and
maintained under paragraph (1) shall be a portal to key
information relating to this section for multiemployer plan
administrators and trustees, plan participants, beneficiaries,
participating employers, other stakeholders, and the public.
``(3) Content and function.--The internet website
established under paragraph (1) shall--
``(A) describe the nature and scope of the special
partition authority and assistance under this section
in a manner calculated to be understood by the average
plan participant;
``(B) include published guidance, regulations, and
all other relevant information on the implementation
and administration of this section;
``(C) include, with respect to plan applications
for special partition assistance--
``(i) a general description of the process
by which eligible plans can apply for special
partition assistance, information on how and
when the corporation will process and consider
plan applications;
``(ii) information on how the corporation
will address any incomplete applications as
specified in under this section;
``(iii) a list of the plans that have
applied for special partition assistance and,
for each application, the date of submission of
a completed application;
``(iv) the text of each plan's completed
application for special partition assistance
with appropriate redactions of personal,
proprietary, or sensitive information;
``(v) the estimated date that a decision
will be made by the corporation on each
application;
``(vi) the actual date when such decision
is made;
``(vii) the corporation's decision on each
application; and
``(viii) as applicable, a detailed
rationale for any decision not to approve a
plan's application for special partition
assistance;
``(D) provide detailed information on each contract
solicited and awarded to implement or administer this
section;
``(E) include reports, audits, and other relevant
oversight and accountability information on this
section, including the annual reports submitted by the
board of directors of the corporation to Congress
required under subsection (n), the Office of the
Inspector General audits, correspondence, and
publications, and the Government Accountability Office
reports under subsection (o);
``(F) provide a clear means for multiemployer plan
administrators, plan participants, beneficiaries, other
stakeholders, and the public to contact the corporation
and provide feedback on the implementation and
administration of this section; and
``(G) be regularly updated to carry out the
purposes of this subsection.
``(q) Office of Inspector General.--There is authorized to be
appropriated to the corporation's Office of Inspector General
$24,000,000 for fiscal year 2020, which shall remain available through
September 30, 2028, for salaries and expenses necessary for conducting
investigations and audits of the implementation and administration of
this section.
``(r) Application of Excise Tax.--During the period that a plan is
subject to a partition order under this section and prior to a
cessation of adjustments pursuant to subsection (i)(3), the plan shall
not be subject to section 4971 of the Internal Revenue Code of 1986.''.
SEC. 102. REPEAL OF BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN
CRITICAL AND DECLINING STATUS.
(a) Amendment to Internal Revenue Code of 1986.--Paragraph (9) of
section 432(e) of the Internal Revenue Code of 1986 is repealed.
(b) Amendment to Employee Retirement Income Security Act of 1974.--
Paragraph (9) of section 305(e) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1085(e)) is repealed.
(c) Effective Date.--The repeals made by this section shall not
apply to plans that have been approved for a suspension of benefit
under section 432(e)(9)(G) of the Internal Revenue Code of 1986 and
section 305(e)(9)(G) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1085(e)(9)(G)) before the date of the enactment of this
Act.
SEC. 103. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS IN
ENDANGERED, CRITICAL, OR CRITICAL AND DECLINING STATUS.
(a) In General.--Notwithstanding the actuarial certification under
section 305(b)(3) of the Employee Retirement Income Security Act of
1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a
plan sponsor of a multiemployer plan elects the application of this
section, then, for purposes of section 305 of such Act and section 432
of such Code--
(1) the status of the plan for its first plan year
beginning during the period beginning on March 1, 2020, and
ending on February 28, 2021, or the next succeeding plan year
(as designated by the plan sponsor in such election), shall be
the same as the status of such plan under such sections for the
plan year preceding such designated plan year, and
(2) in the case of a plan which was in endangered or
critical status for the plan year preceding the designated plan
year described in paragraph (1), the plan shall not be required
to update its plan or schedules under section 305(c)(6) of such
Act and section 432(c)(6) of such Code, or section 305(e)(3)(B)
of such Act and section 432(e)(3)(B) of such Code, whichever is
applicable, until the plan year following the designated plan
year described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974
and section 432 of the Internal Revenue Code of 1986 did not apply to
the plan year preceding the designated plan year described in paragraph
(1), the plan actuary shall make a certification of the status of the
plan under section 305(b)(3) of such Act and section 432(b)(3) of such
Code for the preceding plan year in the same manner as if such sections
had applied to such preceding plan year.
(b) Exception for Plans Becoming Critical During Election.--If--
(1) an election was made under subsection (a) with respect
to a multiemployer plan, and
(2) such plan has, without regard to such election, been
certified by the plan actuary under section 305(b)(3) of the
Employee Retirement Income Security Act of 1974 and section
432(b)(3) of the Internal Revenue Code of 1986 to be in
critical status for the designated plan year described in
subsection (a)(1), then such plan shall be treated as a plan in
critical status for such plan year for purposes of applying
section 4971(g)(1)(A) of such Code, section 302(b)(3) of such
Act (without regard to the second sentence thereof), and
section 412(b)(3) of such Code (without regard to the second
sentence thereof).
(c) Election and Notice.--
(1) Election.--An election under subsection (a)--
(A) shall be made at such time and in such manner
as the Secretary of the Treasury or the Secretary's
delegate may prescribe and, once made, may be revoked
only with the consent of the Secretary, and
(B) if made--
(i) before the date the annual
certification is submitted to the Secretary or
the Secretary's delegate under section
305(b)(3) of such Act and section 432(b)(3) of
such Code, shall be included with such annual
certification, and
(ii) after such date, shall be submitted to
the Secretary or the Secretary's delegate not
later than 30 days after the date of the
election.
(2) Notice to participants.--
(A) In general.--Notwithstanding section
305(b)(3)(D) of the Employee Retirement Income Security
Act of 1974 and section 432(b)(3)(D) of the Internal
Revenue Code of 1986, if the plan is neither in
endangered nor critical status by reason of an election
made under subsection (a)--
(i) the plan sponsor of a multiemployer
plan shall not be required to provide notice
under such sections, and
(ii) the plan sponsor shall provide to the
participants and beneficiaries, the bargaining
parties, the Pension Benefit Guaranty
Corporation, and the Secretary of Labor a
notice of the election under subsection (a) and
such other information as the Secretary of the
Treasury (in consultation with the Secretary of
Labor) may require--
(I) if the election is made before
the date the annual certification is
submitted to the Secretary or the
Secretary's delegate under section
305(b)(3) of such Act and section
432(b)(3) of such Code, not later than
30 days after the date of the
certification, and
(II) if the election is made after
such date, not later than 30 days after
the date of the election.
(B) Notice of endangered status.--Notwithstanding
section 305(b)(3)(D) of such Act and section
432(b)(3)(D) of such Code, if the plan is certified to
be in critical status for any plan year but is in
endangered status by reason of an election made under
subsection (a), the notice provided under such sections
shall be the notice which would have been provided if
the plan had been certified to be in endangered status.
SEC. 104. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND
REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN
CRITICAL AND ENDANGERED STATUS FOR 2020 OR 2021.
(a) In General.--If the plan sponsor of a multiemployer plan which
is in endangered or critical status for a plan year beginning in 2020
or 2021 (determined after application of section 4) elects the
application of this section, then, for purposes of section 305 of the
Employee Retirement Income Security Act of 1974 and section 432 of the
Internal Revenue Code of 1986--
(1) except as provided in paragraph (2), the plan's funding
improvement period or rehabilitation period, whichever is
applicable, shall be 15 years rather than 10 years, and
(2) in the case of a plan in seriously endangered status,
the plan's funding improvement period shall be 20 years rather
than 15 years.
(b) Definitions and Special Rules.--For purposes of this section--
(1) Election.--An election under this section shall be made
at such time, and in such manner and form, as (in consultation
with the Secretary of Labor) the Secretary of the Treasury or
the Secretary's delegate may prescribe.
(2) Definitions.--Any term which is used in this section
which is also used in section 305 of the Employee Retirement
Income Security Act of 1974 and section 432 of the Internal
Revenue Code of 1986 shall have the same meaning as when used
in such sections.
(c) Effective Date.--This section shall apply to plan years
beginning after December 31, 2019.
SEC. 105. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.
(a) Adjustments.--
(1) Amendment to employee retirement income security act of
1974.--Section 304(b)(8) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1084(b)) is amended by adding
at the end the following new subparagraph:
``(F) Relief for 2020 and 2021.--A multiemployer
plan with respect to which the solvency test under
subparagraph (C) is met as of February 29, 2020, may
elect to apply this paragraph by substituting `February
29, 2020' for `August 31, 2008' each place it appears
in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II)
(without regard to whether such plan previously elected
the application of this paragraph). The preceding
sentence shall not apply to a plan with respect to
which a partition order is in effect under section
4233A.''.
(2) Amendment to internal revenue code of 1986.--Section
431(b)(8) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(F) Relief for 2020 and 2021.--A multiemployer
plan with respect to which the solvency test under
subparagraph (C) is met as of February 29, 2020, may
elect to apply this paragraph by substituting `February
29, 2020' for `August 31, 2008' each place it appears
in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II)
(without regard to whether such plan previously elected
the application of this paragraph). The preceding
sentence shall not apply to a plan with respect to
which a partition order is in effect under section
4233A of the Employee Retirement Income Security Act of
1974.''.
(b) Effective Dates.--
(1) In general.--The amendments made by this section shall
take effect as of the first day of the first plan year ending
on or after February 29, 2020, except that any election a plan
makes pursuant to this section that affects the plan's funding
standard account for the first plan year beginning after
February 29, 2020, shall be disregarded for purposes of
applying the provisions of section 305 of the Employee
Retirement Income Security Act of 1974 and section 432 of the
Internal Revenue Code of 1986 to such plan year.
(2) Restrictions on benefit increases.--Notwithstanding
paragraph (1), the restrictions on plan amendments increasing
benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D)
of such Code, as applied by the amendments made by this
section, shall take effect on the date of enactment of this
Act.
SEC. 106. PBGC GUARANTEE FOR PARTICIPANTS IN MULTIEMPLOYER PLANS.
Section 4022A(c)(1) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1322a(c)(1)) is amended by striking subparagraphs
(A) and (B) and inserting the following:
``(A) 100 percent of the accrual rate up to $15, plus 75
percent of the lesser of--
``(i) $70; or
``(ii) the accrual rate, if any, in excess of $15;
and
``(B) the number of the participant's years of credited
service.
For each calendar year after the first full calendar year following the
date of the enactment of the Emergency Pension Plan Relief Act of 2021,
the accrual rates in subparagraph (A) shall increase by the national
average wage index (as defined in section 209(k)(1) of the Social
Security Act). For purposes of this subsection, the rates applicable
for determining the guaranteed benefits of the participants of any plan
shall be the rates in effect for the calendar year in which the plan
becomes insolvent under section 4245 or the calendar year in which the
plan is terminated, if earlier.''.
TITLE II--RELIEF FOR SINGLE EMPLOYER PENSION PLANS
SEC. 201. EXTENDED AMORTIZATION FOR SINGLE EMPLOYER PLANS.
(a) 15-Year Amortization Under the Internal Revenue Code of 1986.--
Section 430(c) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(8) 15-year amortization.--With respect to plan years
beginning after December 31, 2019--
``(A) the shortfall amortization bases for all plan
years preceding the first plan year beginning after
December 31, 2019 (and all shortfall amortization
installments determined with respect to such bases),
shall be reduced to zero, and
``(B) subparagraphs (A) and (B) of paragraph (2)
shall each be applied by substituting `15-plan-year
period' for `7-plan-year period'.''.
(b) 15-Year Amortization Under the Employee Retirement Income
Security Act of 1974.--Section 303(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1083(c)) is amended by adding at the
end the following new paragraph:
``(8) 15-year amortization.--With respect to plan years
beginning after December 31, 2019--
``(A) the shortfall amortization bases for all plan
years preceding the first plan year beginning after
December 31, 2019 (and all shortfall amortization
installments determined with respect to such bases),
shall be reduced to zero, and
``(B) subparagraphs (A) and (B) of paragraph (2)
shall each be applied by substituting `15-plan-year
period' for `7-plan-year period'.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2019.
SEC. 202. EXTENSION OF PENSION FUNDING STABILIZATION PERCENTAGES FOR
SINGLE EMPLOYER PLANS.
(a) Amendments to Internal Revenue Code of 1986.--
(1) In general.--The table contained in subclause (II) of
section 430(h)(2)(C)(iv) of the Internal Revenue Code of 1986
is amended to read as follows:
------------------------------------------------------------------------
The The
applicable applicable
``If the calendar year is: minimum maximum
percentage percentage
is: is:
------------------------------------------------------------------------
Any year in the period starting in 2012 and 90% 110%
ending in 2019...............................
Any year in the period starting in 2020 and 95% 105%
ending in 2025...............................
2026.......................................... 90% 110%
2027.......................................... 85% 115%
2028.......................................... 80% 120%
2029.......................................... 75% 125%
After 2029.................................... 70% 130%.''.
------------------------------------------------------------------------
(2) Floor on 25-year averages.--Subclause (I) of section
430(h)(2)(C)(iv) of such Code is amended by adding at the end
the following: ``Notwithstanding anything in this subclause, if
the average of the first, second, or third segment rate for any
25-year period is less than 5 percent, such average shall be
deemed to be 5 percent.''.
(b) Amendments to Employee Retirement Income Security Act of
1974.--
(1) In general.--The table contained in subclause (II) of
section 303(h)(2)(C)(iv) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)(II)) is
amended to read as follows:
------------------------------------------------------------------------
The The
applicable applicable
``If the calendar year is: minimum maximum
percentage percentage
is: is:
------------------------------------------------------------------------
Any year in the period starting in 2012 and 90% 110%
ending in 2019...............................
Any year in the period starting in 2020 and 95% 105%
ending in 2025...............................
2026.......................................... 90% 110%
2027.......................................... 85% 115%
2028.......................................... 80% 120%
2029.......................................... 75% 125%
After 2029.................................... 70% 130%.''.
------------------------------------------------------------------------
(2) Conforming amendments.--
(A) In general.--Section 101(f)(2)(D) of such Act
(29 U.S.C. 1021(f)(2)(D)) is amended--
(i) in clause (i) by striking ``and the
Bipartisan Budget Act of 2015'' both places it
appears and inserting ``, the Bipartisan Budget
Act of 2015, and the Emergency Pension Plan
Relief Act of 2021'', and
(ii) in clause (ii) by striking ``2023''
and inserting ``2029''.
(B) Statements.--The Secretary of Labor shall
modify the statements required under subclauses (I) and
(II) of section 101(f)(2)(D)(i) of such Act to conform
to the amendments made by this section.
(3) Floor on 25-year averages.--Subclause (I) of section
303(h)(2)(C)(iv) of such Act (29 U.S.C. 1083(h)(2)(C)(iv)(II))
is amended by adding at the end the following:
``Notwithstanding anything in this subclause, if the average of
the first, second, or third segment rate for any 25-year period
is less than 5 percent, such average shall be deemed to be 5
percent.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to plan years beginning after December 31, 2019.
<all>
Introduced in House
Introduced in House
Referred to the Subcommittee on Worker and Family Support.
Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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