To provide for private-sector solutions to certain pension funding challenges, and for other purposes.

SECTION 1. REDUCTIONS IN CONTRIBUTIONS TO MULTIEMPLOYER PLANS TO 
              IMPLEMENT SELF-HELP MEASURES ADOPTED BY LABOR AND 
              MANAGEMENT.

    (a) Amendments to ERISA.--Section 305 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1085) is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Discretion To Accept Reduced Contributions.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, during the funding plan adoption period, funding 
        improvement period, rehabilitation plan adoption period, and 
        the rehabilitation period, the Pension Benefit Guaranty 
        Corporation may permit a plan sponsor to accept from an 
        employer a ratified collective bargaining agreement with 
        respect to the multiemployer plan that provides for a reduction 
        in the level of contributions made by a contributing employer 
        and appropriate reduction in level of future benefit accruals 
        for any participants for a period of not more than 5 years (or 
        such shorter period as determined by such Corporation) provided 
        that such Corporation determines that--
                    ``(A) the contributing employer will be unable to 
                pay its debts when due and will be unable to continue 
                business without a reduction in its contribution rates;
                    ``(B) the aggregate withdrawal liability of the 
                contributing employer with respect to all multiemployer 
                pension plans exceeds $750,000,000, or such lower 
                amount as determined to be appropriate by such 
                Corporation;
                    ``(C) there is substantial doubt as to the 
                collectability of the withdrawal liability if the 
                contributing employer were to withdraw from the plan;
                    ``(D) the reduced contributions are not reasonably 
                expected to have an adverse effect on the deficit of 
                such Corporation;
                    ``(E) other creditors, stakeholders, and other 
                parties to which the contributing employer is obligated 
                have accepted reductions that are comparable to those 
                of the pension plan; and
                    ``(F) such other conditions are satisfied as may be 
                imposed in accordance with regulations prescribed by 
                such Corporation.
            ``(2) Impact on withdrawal liability determinations.--Any 
        reduction in the level of contributions under this subsection 
        shall be disregarded in determining any limitation on annual 
        payments under subparagraphs (B) and (C) of section 4219(c)(1) 
        and in determining withdrawal liability under section 4201 with 
        respect to the employer subject to the reduced contribution 
        rate.''.
    (b) Amendments to Internal Revenue Code.--Section 432 of the 
Internal Revenue Code of 1986 is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Discretion To Accept Reduced Contributions.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, during the funding plan adoption period, funding 
        improvement period, rehabilitation plan adoption period, and 
        the rehabilitation period, the Pension Benefit Guaranty 
        Corporation may permit a plan sponsor to accept from an 
        employer a ratified collective bargaining agreement with 
        respect to the multiemployer plan that provides for a reduction 
        in the level of contributions made by a contributing employer 
        and appropriate reduction in level of future benefit accruals 
        for any participants for a period of not more than 5 years (or 
        such shorter period as determined by such Corporation) provided 
        that such Corporation determines that--
                    ``(A) the contributing employer will be unable to 
                pay its debts when due and will be unable to continue 
                business without a reduction in its contribution rates;
                    ``(B) the aggregate withdrawal liability of the 
                contributing employer with respect to all multiemployer 
                pension plans exceeds $750,000,000, or such lower 
                amount as determined by such Corporation;
                    ``(C) there is substantial doubt as to the 
                collectability of the withdrawal liability if the 
                contributing employer were to withdraw from the plan;
                    ``(D) the reduced contributions are not reasonably 
                expected to have an adverse effect on the deficit of 
                such Corporation;
                    ``(E) other creditors, stakeholders, and other 
                parties to which the contributing employer is obligated 
                have accepted reductions that are comparable to those 
                of the pension plan; and
                    ``(F) such other conditions are satisfied as may be 
                imposed in accordance with regulations prescribed by 
                such Corporation.
            ``(2) Impact on withdrawal liability determinations.--Any 
        reduction in the level of contributions under this subsection 
        shall be disregarded in determining any limitation on annual 
        payments under subparagraphs (B) and (C) of section 4219(c)(1) 
        of the Employee Retirement Income Security Act of 1974 and in 
        determining withdrawal liability under section 4201 of such Act 
        with respect to the employer subject to the reduced 
        contribution rate.''.
    (c) Technical and Conforming Amendments.--
            (1) Section 4971(g)(4)(C)(ii) of the Internal Revenue Code 
        of 1986 is amended by striking ``432(i)(9)'' and inserting 
        ``432(j)(9)''.
            (2) Sections 101(f)(2)(B) and 103(f)(1)(B) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B) 
        and 1023(f)(1)(B)) are each amended by striking ``305(i)'' each 
        place such term appears and inserting ``305(j)''.

Summary: Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to authorize the Pension Benefit Guaranty Corporation (PBGC), provided certain conditions are met, to allow the sponsor of an underfunded multiemployer benefit plan to accept from an employer a ratified collective bargaining agreement that provides for a reduction in plan employer contributions as well as appropriate reduction in the level of future benefit accruals for plan participants for up to five years during the plan funding adoption period, funding improvement period, rehabilitation adoption period, and rehabilitation period. Conditions such an allowance upon the PBGC's determination that: (1) the contributing employer will be unable to pay its debts when due and to continue business without a reduction in its contribution rates. (2) the contributing employer's aggregate withdrawal liability with respect to all multiemployer pension plans exceeds $750 million. (3) the collectability of the withdrawal liability is very doubtful if the contributing employer were to withdraw from the plan. (4) the reduced contributions are not reasonably expected to have an adverse effect on the PBGC deficit. And (5) other creditors, stakeholders, and parties to which the contributing employer is obligated have accepted comparable reductions.