I 

115TH CONGRESS 

1ST SESSION H. R. 4444 

To amend the Internal Revenue Code of 1986 to create a Pension Rehabilitation Trust Fund, to establish a Pension Rehabilitation Administration 

within the Department of the Treasury to make loans to multiemployer 

defined benefit plans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 16, 2017 

Mr. NEAL (for himself, Mr. LEVIN, Mr. THOMPSON of California, Mr. CROWLEY, Mr. DANNY K. DAVIS of Illinois, Mr. HIGGINS of New York, Mrs. 

BUSTOS, Mr. CARSON of Indiana, Ms. CASTOR of Florida, Mr. CICILLINE, 

Mr. CLEAVER, Mr. CLYBURN, Mrs. DINGELL, Mr. ESPAILLAT, Mr. 

EVANS, Ms. FUDGE, Ms. BONAMICI, Mr. HASTINGS, Ms. KAPTUR, Mr. 

KILDEE, Ms. WILSON of Florida, Ms. MAXINE WATERS of California, Ms. 

VELA ́ZQUEZ, Mr. VELA, Mr. SCOTT of Virginia, Ms. SCHAKOWSKY, Mr. 

SABLAN, Mr. RYAN of Ohio, Ms. BLUNT ROCHESTER, Miss RICE of New 

York, Mr. PALLONE, Ms. NORTON, Mr. NORCROSS, Mr. NOLAN, Mrs. 

NAPOLITANO, Ms. MOORE, Mrs. CAROLYN B. MALONEY of New York, 

Mr. LYNCH, Mrs. BEATTY, and Mr. GENE GREEN of Texas) introduced 

the following bill; which was referred to the Committee on Education and 

the Workforce, and in addition to the Committees on Ways and Means, 

and Appropriations, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to create 

a Pension Rehabilitation Trust Fund, to establish a Pension Rehabilitation Administration within the Department of the Treasury to make loans to multiemployer 

defined benefit plans, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rehabilitation for Mul5 tiemployer Pensions Act’’. 

6 SEC. 2. PENSION REHABILITATION ADMINISTRATION; ES7 TABLISHMENT; POWERS. 

8 (a) ESTABLISHMENT.—There is established in the 

9 Department of the Treasury an agency to be known as 

10 the ‘‘Pension Rehabilitation Administration’’. 

11 (b) DIRECTOR.— 

12 (1) ESTABLISHMENT OF POSITION.—There 

13 shall be at the head of the Pension Rehabilitation 

14 Administration a Director, who shall be appointed 

15 by the President. 

16 (2) TERM.— 

17 (A) IN GENERAL.—The term of office of 

18 the Director shall be 5 years. 

19 (B) SERVICE UNTIL APPOINTMENT OF

20 SUCCESSOR.—An individual serving as Director 

21 at the expiration of a term may continue to 

22 serve until a successor is appointed. 

23 (3) POWERS.— 

24 (A) APPOINTMENT OF DEPUTY DIREC25 TORS, OFFICERS, AND EMPLOYEES.—The DiVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 rector may appoint Deputy Directors, officers, 

2 and employees, including attorneys, in accord3 ance with chapter 51 and subchapter III of 

4 chapter 53 of title 5, United States Code. 

5 (B) CONTRACTING.— 

6 (i) IN GENERAL.—The Director may 

7 contract for financial and administrative 

8 services (including those related to budget 

9 and accounting, financial reporting, per10 sonnel, and procurement) with the General 

11 Services Administration, or such other 

12 Federal agency as the Director determines 

13 appropriate, for which payment shall be 

14 made in advance, or by reimbursement, 

15 from funds of the Pension Rehabilitation 

16 Administration in such amounts as may be 

17 agreed upon by the Director and the head 

18 of the Federal agency providing the serv19 ices. 

20 (ii) SUBJECT TO APPROPRIATIONS.— 

21 Contract authority under clause (i) shall be 

22 effective for any fiscal year only to the ex23 tent that appropriations are available for 

24 that purpose. 


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1 (c) TRANSFER OF FUNDS.—The Secretary of the 

2 Treasury may transfer for any fiscal year, from unobli3 gated amounts appropriated to the Department of the 

4 Treasury, to the Pension Rehabilitation Administration 

5 such sums as may be reasonably necessary for the admin6 istrative and operating expenses of the Pension Rehabilita7 tion Administration. 

8 SEC. 3. PENSION REHABILITATION TRUST FUND. 

9 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

10 Internal Revenue Code of 1986 is amended by adding at 

11 the end the following new section: 

12 ‘‘SEC. 9512. PENSION REHABILITATION TRUST FUND. 

13 ‘‘(a) CREATION OF TRUST FUND.—There is estab14 lished in the Treasury of the United States a trust fund 

15 to be known as the ‘Pension Rehabilitation Trust Fund’ 

16 (hereafter in this section referred to as the ‘Fund’), con17 sisting of such amounts as may be appropriated or cred18 ited to such Trust Fund as provided in this section and 

19 section 9602(b). 

20 ‘‘(b) TRANSFERS TO FUND.— 

21 ‘‘(1) AMOUNTS ATTRIBUTABLE TO TREASURY

22 BONDS.—There shall be credited to the Fund the 

23 amounts transferred under section 6(b) of the Reha24 bilitation for Multiemployer Pensions Act. 

25 ‘‘(2) LOAN INTEREST AND PRINCIPAL.— 


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1 ‘‘(A) IN GENERAL.—The Director of the 

2 Pension Rehabilitation Administration estab3 lished under section 2 of the Rehabilitation for 

4 Multiemployer Pensions Act shall deposit in the 

5 Fund any amounts received from a plan as pay6 ment of interest or principal on a loan under 

7 section 4 of such Act. 

8 ‘‘(B) INTEREST.—For purposes of sub9 paragraph (A), the term ‘interest’ includes 

10 points and other similar amounts. 

11 ‘‘(3) TRANSFERS FROM SECRETARY.—The Di12 rector of the Pension Rehabilitation Administration 

13 shall deposit in the Fund any amounts received from 

14 the Secretary under section 2(c) of such Act. 

15 ‘‘(4) AVAILABILITY OF FUNDS.—Amounts cred16 ited to or deposited in the Fund shall remain avail17 able until expended. 

18 ‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 

19 Fund are available without further appropriation to the 

20 Pension Rehabilitation Administration— 

21 ‘‘(1) for the purpose of making the loans de22 scribed in section 4 of the Rehabilitation for Multi23 employer Pensions Act, 

24 ‘‘(2) for the payment of principal and interest 

25 on bonds issued under section 6 of such Act, and 


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1 ‘‘(3) for administrative and operating expenses 

2 of such Administration.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for subchapter A of chapter 98 of the Internal Revenue 

5 Code of 1986 is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 9512. Pension Rehabilitation Trust Fund.’’. 

7 SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 

8 BENEFIT PLANS. 

9 (a) LOAN AUTHORITY.— 

10 (1) IN GENERAL.—The Pension Rehabilitation 

11 Administration established under section 2 is au12 thorized— 

13 (A) to make loans to multiemployer plans 

14 (as defined in section 414(f) of the Internal 

15 Revenue Code of 1986) which are defined ben16 efit plans (as defined in section 414(j) of such 

17 Code) and which— 

18 (i) are in critical and declining status 

19 (within the meaning of section 432(b)(6) 

20 of such Code and section 305(b)(6) of such 

21 Act), including any plan with respect to 

22 which a suspension of benefits has been 

23 approved under section 432(e)(9) of such 

24 Code and section 305(e)(9) of such Act; or 


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1 (ii) are insolvent for purposes of sec2 tion 418E of such Code, if they became in3 solvent after December 16, 2014, and have 

4 not been terminated; and 

5 (B) subject to subsection (b), to establish 

6 appropriate terms for such loans. 

7 (2) CONSULTATION.—The Director of the Pen8 sion Rehabilitation Administration shall consult with 

9 the Secretary of the Treasury, the Secretary of 

10 Labor, and the Director of the Pension Benefit 

11 Guaranty Corporation before making any loan under 

12 paragraph (1), and shall share with such persons the 

13 application and plan information with respect to 

14 each such loan. 

15 (3) ESTABLISHMENT OF LOAN PROGRAM.— 

16 (A) IN GENERAL.—A program to make the 

17 loans authorized under this section shall be es18 tablished not later than March 31, 2018, with 

19 guidance regarding such program to be promul20 gated by the Director of the Pension Rehabilita21 tion Administration, in consultation with the 

22 Pension Benefit Guaranty Corporation and the 

23 Department of Labor, not later than June 1, 

24 2018. 


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1 (B) LOANS AUTHORIZED BEFORE PRO2 GRAM DATE.—Without regard to whether the 

3 program under subparagraph (A) has been es4 tablished, a plan may apply for a loan under 

5 this section before either date described in such 

6 subparagraph, and the Pension Rehabilitation 

7 Administration shall approve the application 

8 and make the loan before establishment of the 

9 program if necessary to avoid any suspension of 

10 the accrued benefits of participants. 

11 (b) LOAN TERMS.—The terms of any loan made 

12 under subsection (a) shall state that— 

13 (1) the plan shall make payments of interest on 

14 the loan for a period of 29 years beginning on the 

15 date of the loan; 

16 (2) final payment of interest and principal shall 

17 be due in the 30th year after the date of the loan; 

18 and 

19 (3) as a condition of the loan, the plan sponsor 

20 stipulates that— 

21 (A) except as provided in subparagraph 

22 (B), the plan will not increase benefits, allow 

23 any employer participating in the plan to re24 duce its contributions, or accept any collective 

25 bargaining agreement which provides for reVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 duced contribution rates, during the 30-year pe2 riod described in paragraphs (1) and (2); 

3 (B) in the case of a plan with respect to 

4 which a suspension of benefits has been ap5 proved under section 432(e)(9) of the Internal 

6 Revenue Code of 1986 and section 305(e)(9) of 

7 the Employee Retirement Income Security Act 

8 of 1974, or under section 418E of such Code, 

9 before the loan, the plan will reinstate the sus10 pended benefits (or will not carry out any sus11 pension which has been approved but not yet 

12 implemented); 

13 (C) the plan sponsor will comply with the 

14 requirements of section 6059A of the Internal 

15 Revenue Code of 1986; and 

16 (D) the plan and plan administrator will 

17 meet such other requirements as the Director of 

18 the Pension Rehabilitation Administration pro19 vides in the loan terms. 

20 (c) LOAN APPLICATION.— 

21 (1) IN GENERAL.—In applying for a loan under 

22 subsection (a), the plan sponsor shall— 

23 (A) demonstrate that, except as provided 

24 in subparagraph (C)— 


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1 (i) the loan will enable the plan to 

2 avoid insolvency for at least the 30-year 

3 period described in paragraphs (1) and (2) 

4 of subsection (b) or, in the case of a plan 

5 which is already insolvent, to emerge from 

6 insolvency within and avoid insolvency for 

7 the remainder of such period; and 

8 (ii) the plan is reasonably expected to 

9 be able to pay benefits and the interest on 

10 the loan during such period and to accu11 mulate sufficient funds to repay the prin12 cipal when due; 

13 (B) provide the information necessary to 

14 determine the loan amount under subsection 

15 (d); 

16 (C) stipulate whether the plan is also ap17 plying for financial assistance under section 

18 4261(d) of the Employee Retirement Income 

19 Security Act of 1974 (29 U.S.C. 1431(d)) in 

20 combination with the loan to enable the plan to 

21 avoid insolvency and to pay benefits, or is al22 ready receiving such financial assistance as a 

23 result of a previous application; 

24 (D) state in what manner the loan pro25 ceeds will be invested pursuant to subsection 


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1 (d), the person from whom any annuity con2 tracts under such subsection will be purchased, 

3 and the person who will be the investment man4 ager for any portfolio implemented under such 

5 subsection; and 

6 (E) include such other information and 

7 certifications as the Director of the Pension Re8 habilitation Administration shall require. 

9 (2) STANDARD FOR ACCEPTING ACTUARIAL AND

10 PLAN SPONSOR DETERMINATIONS AND DEMONSTRA11 TIONS IN THE APPLICATION.—In evaluating the plan 

12 sponsor’s application, the Director of the Pension 

13 Rehabilitation Administration shall accept the deter14 minations and demonstrations in the application un15 less the Director, in consultation with the Director 

16 of the Pension Benefit Guaranty Corporation and 

17 the Secretary of Labor, concludes that the deter18 minations and demonstrations in the application 

19 were clearly erroneous. 

20 (3) REQUIRED ACTION; DEEMED APPROVAL.— 

21 The Director of the Pension Rehabilitation Adminis22 tration shall approve or deny any application under 

23 this subsection within 90 days after the submission 

24 of such application. An application shall be deemed 

25 approved unless, within such 90 days, the Director 


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1 notifies the plan sponsor that the determinations or 

2 demonstrations in the application were deemed clear3 ly erroneous under paragraph (2). Any approval or 

4 denial of an application by the Director of the Pen5 sion Rehabilitation Administration shall be treated 

6 as a final agency action for purposes of section 704 

7 of title 5, United States Code. 

8 (4) CERTAIN PLANS REQUIRED TO APPLY.— 

9 The plan sponsor of any plan with respect to which 

10 a suspension of benefits has been approved under 

11 section 432(e)(9) of the Internal Revenue Code of 

12 1986 and section 305(e)(9) of the Employee Retire13 ment Income Security Act of 1974 or under section 

14 418E of such Code, before the date of the enactment 

15 of this Act shall apply for a loan under this section. 

16 The Director of the Pension Rehabilitation Adminis17 tration shall provide for such plan sponsors to use 

18 the simplified application under subsection 

19 (d)(2)(B). 

20 (d) LOAN AMOUNT AND USE.— 

21 (1) AMOUNT OF LOAN.— 

22 (A) IN GENERAL.—Except as provided in 

23 subparagraph (B) and paragraph (2), the 

24 amount of any loan under subsection (a) shall 

25 be, as demonstrated by the plan sponsor on the 


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1 application under subsection (c), the amount 

2 needed to purchase annuity contracts or to im3 plement a portfolio described in paragraph 

4 (3)(C) (or a combination of the two) sufficient 

5 to provide benefits of participants and bene6 ficiaries of the plan in pay status at the time 

7 the loan is made. 

8 (B) PLANS WITH SUSPENDED BENE9 FITS.—In the case of a plan which has sus10 pended benefits under section 432(e)(9) of the 

11 Internal Revenue Code of 1986 and section 

12 305(e)(9) of the Employee Retirement Income 

13 Security Act of 1974 (29 U.S.C. 1085(e)(9)) or 

14 under section 418E of such Code— 

15 (i) the suspension of benefits shall not 

16 be taken into account in applying para17 graph (1); and 

18 (ii) the loan amount shall be the 

19 amount sufficient to provide benefits of 

20 participants and beneficiaries of the plan 

21 in pay status at the time the loan is made, 

22 determined without regard to the suspen23 sion, including retroactive payment of ben24 efits which would otherwise have been pay25 able during the period of the suspension. 


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1 (2) COORDINATION WITH PBGC FINANCIAL AS2 SISTANCE.— 

3 (A) IN GENERAL.—In the case of a plan 

4 which is also applying for financial assistance 

5 under section 4261(d) of the Employee Retire6 ment Income Security Act of 1974 (29 U.S.C. 

7 1431(d))— 

8 (i) the plan sponsor shall submit the 

9 loan application and the application for fi10 nancial assistance jointly to the Pension 

11 Rehabilitation Administration and the Pen12 sion Benefit Guaranty Corporation with 

13 the information necessary to determine the 

14 amount under subparagraph (B); and 

15 (ii) if such financial assistance is 

16 granted, the amount of the loan under sub17 section (a) shall be the amount described 

18 in paragraph (1) reduced by the amount of 

19 such financial assistance. 

20 (B) PLANS ALREADY RECEIVING PBGC AS21 SISTANCE.—The Director of the Pension Reha22 bilitation Administration shall provide for a 

23 simplified application for the loan under this 

24 section which may be used by an insolvent plan 

25 which has not been terminated and which is alVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 ready receiving financial assistance (other than 

2 under section 4261(d) of such Act) from the 

3 Pension Benefit Guaranty Corporation at the 

4 time of the application for the loan under this 

5 section. 

6 (3) USE OF LOAN FUNDS.— 

7 (A) IN GENERAL.—The loan received 

8 under subsection (a) shall be used to purchase 

9 annuity contracts which meet the requirements 

10 of subparagraph (B) or to implement a port11 folio described in subparagraph (C) (or a com12 bination of the two) to provide the benefits de13 scribed in paragraph (1). 

14 (B) ANNUITY CONTRACT REQUIRE15 MENTS.—The annuity contracts purchased 

16 under subparagraph (A) shall be issued by an 

17 insurance company which is licensed to do busi18 ness under the laws of any State and which is 

19 rated A or better by a nationally recognized sta20 tistical rating organization, and the purchase of 

21 such contracts shall meet all applicable fidu22 ciary standards under the Employee Retirement 

23 Income Security Act of 1974. 

24 (C) PORTFOLIO.— 


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1 (i) IN GENERAL.—A portfolio de2 scribed in this subparagraph is— 

3 (I) a cash matching portfolio or 

4 duration matching portfolio consisting 

5 of investment grade (as rated by a na6 tionally recognized statistical rating 

7 organization) fixed income invest8 ments, including United States dollar9 denominated public or private debt 

10 obligations issued or guaranteed by 

11 the United States or a foreign issuer, 

12 which are tradeable in United States 

13 currency and are issued at fixed or 

14 zero coupon rates; or 

15 (II) any other portfolio pre16 scribed by the Secretary of the Treas17 ury in regulations which has a similar 

18 risk profile to the portfolios described 

19 in subclause (I) and is equally protec20 tive of the interests of participants 

21 and beneficiaries. 

22 Once implemented, such a portfolio shall 

23 be maintained until all liabilities to partici24 pants and beneficiaries in pay status at the 

25 time of the loan are satisfied. 


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1 (ii) FIDUCIARY DUTY.—Any invest2 ment manager of a portfolio under this 

3 subparagraph shall acknowledge in writing 

4 that such person is a fiduciary under the 

5 Employee Retirement Income Security Act 

6 of 1974 with respect to the plan. 

7 (iii) TREATMENT OF PARTICIPANTS

8 AND BENEFICIARIES.—Participants and 

9 beneficiaries covered by a portfolio under 

10 this subparagraph shall continue to be 

11 treated as participants and beneficiaries of 

12 the plan. 

13 (D) ACCOUNTING.— 

14 (i) IN GENERAL.—Annuity contracts 

15 purchased and portfolios implemented 

16 under this paragraph shall be accounted 

17 for separately from the other assets of the 

18 plan, and the proceeds thereof shall be 

19 used solely to provide the benefits de20 scribed in paragraph (1) until all such ben21 efits have been paid. 

22 (ii) OVERSIGHT OF NON-ANNUITY IN23 VESTMENTS.— 

24 (I) IN GENERAL.—Any portfolio 

25 implemented under this paragraph 


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1 shall be subject to oversight by the 

2 Pension Rehabilitation Administra3 tion, including a mandatory triennial 

4 review of the adequacy of the portfolio 

5 to provide the benefits described in 

6 paragraph (1) and approval (to be 

7 provided within a reasonable period of 

8 time) of any decision by the plan 

9 sponsor to change the investment 

10 manager of the portfolio. 

11 (II) REMEDIAL ACTION.—If the 

12 triennial review under subclause (I) 

13 determines an inadequacy, the plan 

14 sponsor shall take remedial action to 

15 ensure that the inadequacy will be 

16 cured within 5 years of the review. 

17 (E) OMBUDSPERSON.—The Participant 

18 and Plan Sponsor Advocate established under 

19 section 4004 of the Employee Retirement In20 come Security Act of 1974 shall act as 

21 ombudsperson for participants and beneficiaries 

22 on behalf of whom annuity contracts are pur23 chased or who are covered by a portfolio under 

24 this paragraph. 


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1 (e) LOAN DEFAULT.—If a plan is unable to make any 

2 payment on a loan under this section when due, the Pen3 sion Rehabilitation Administration shall negotiate with the 

4 plan sponsor revised terms for repayment reflecting the 

5 plan’s ability to make payments, which may include in6 stallment payments over a reasonable period and, if the 

7 Pension Rehabilitation Administration deems necessary to 

8 avoid any suspension of the accrued benefits of partici9 pants, forgiveness of a portion of the loan principal. 

10 (f) AUTHORITY TO ISSUE RULES, ETC.—The Direc11 tor of the Pension Rehabilitation Administration estab12 lished under section 2, in consultation with the Pension 

13 Benefit Guaranty Corporation and the Department of 

14 Labor, is authorized to issue rules regarding the form, 

15 content, and process of applications for loans under this 

16 section, actuarial standards and assumptions to be used 

17 in making estimates and projections for purposes of such 

18 applications, and assumptions regarding interest rates, 

19 mortality, and distributions with respect to a portfolio de20 scribed in subsection (d)(3)(C). 

21 (g) COORDINATION WITH TAXATION OF UNRELATED

22 BUSINESS INCOME.—Subparagraph (A) of section 

23 514(c)(6) of the Internal Revenue Code of 1986 is amend24 ed— 

25 (1) by striking ‘‘or’’ at the end of clause (i); 


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1 (2) by striking the period at the end of clause 

2 (ii)(II) and inserting ‘‘, or’’; and 

3 (3) by adding at the end the following new 

4 clause: 

5 ‘‘(iii) indebtedness with respect to a 

6 multiemployer plan under a loan made by 

7 the Pension Rehabilitation Administration 

8 pursuant to section 4 of the Rehabilitation 

9 for Multiemployer Pensions Act.’’. 

10 SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND 

11 FUNDING RULES. 

12 (a) AMENDMENT TO INTERNAL REVENUE CODE OF

13 1986.—Section 432 of the Internal Revenue Code of 1986 

14 is amended by adding at the end the following new sub15 section: 

16 ‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN17 SION REHABILITATION LOANS.— 

18 ‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL19 ITY.— 

20 ‘‘(A) IN GENERAL.—If any employer par21 ticipating in a plan at the time the plan receives 

22 a loan under section 4(a) of the Rehabilitation 

23 for Multiemployer Pensions Act withdraws from 

24 the plan before the end of the 30-year period 

25 beginning on the date of the loan, the withVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 drawal liability of such employer shall be deter2 mined under the Employee Retirement Income 

3 Security Act of 1974— 

4 ‘‘(i) by applying section 4219(c)(1)(D) 

5 of the Employee Retirement Income Secu6 rity Act of 1974 as if the plan were termi7 nating by the withdrawal of every employer 

8 from the plan, and 

9 ‘‘(ii) by determining the value of non10 forfeitable benefits under the plan at the 

11 time of the deemed termination by using 

12 the interest assumptions prescribed for 

13 purposes of section 4044 of the Employee 

14 Retirement Income Security Act of 1974, 

15 as prescribed in the regulations under sec16 tion 4281 of the Employee Retirement In17 come Security Act of 1974 in the case of 

18 such a mass withdrawal. 

19 ‘‘(B) ANNUITY CONTRACTS AND INVEST20 MENT PORTFOLIOS PURCHASED WITH LOAN

21 FUNDS.—Annuity contracts purchased and 

22 portfolios implemented under section 4(d)(3) of 

23 the Rehabilitation for Multiemployer Pensions 

24 Act shall not be taken into account in deter25 mining the withdrawal liability of any employer 


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1 under subparagraph (A), but the amount equal 

2 to the greater of— 

3 ‘‘(i) the benefits provided under such 

4 contracts or portfolios to participants and 

5 beneficiaries, or 

6 ‘‘(ii) the remaining payments due on 

7 the loan under section 4(a) of such Act, 

8 shall be so taken into account. 

9 ‘‘(2) COORDINATION WITH FUNDING REQUIRE10 MENTS.—In the case of a plan which receives a loan 

11 under section 4(a) of the Rehabilitation for Multiem12 ployer Pensions Act— 

13 ‘‘(A) annuity contracts purchased and 

14 portfolios implemented under section 4(d)(3) of 

15 such Act, and the benefits provided to partici16 pants and beneficiaries under such contracts or 

17 portfolios, shall not be taken into account in de18 termining minimum required contributions 

19 under section 412, 

20 ‘‘(B) payments on the interest and prin21 cipal under the loan, and any benefits owed in 

22 excess of those provided under such contracts 

23 or portfolios, shall be taken into account as li24 abilities for purposes of such section, and 


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1 ‘‘(C) if such a portfolio is projected due to 

2 unfavorable investment or actuarial experience 

3 to be unable to fully satisfy the liabilities which 

4 it covers, the amount of the liabilities projected 

5 to be unsatisfied shall be taken into account as 

6 liabilities for purposes of such section.’’. 

7 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN8 COME SECURITY ACT OF 1974.—Section 305 of the Em9 ployee Retirement Income Security Act of 1974 (29 

10 U.S.C. 1085) is amended by adding at the end the fol11 lowing new subsection: 

12 ‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN13 SION REHABILITATION LOANS.— 

14 ‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL15 ITY.— 

16 ‘‘(A) IN GENERAL.—If any employer par17 ticipating in a plan at the time the plan receives 

18 a loan under section 4(a) of the Rehabilitation 

19 for Multiemployer Pensions Act withdraws from 

20 the plan before the end of the 30-year period 

21 beginning on the date of the loan, the with22 drawal liability of such employer shall be deter23 mined— 

24 ‘‘(i) by applying section 4219(c)(1)(D) 

25 as if the plan were terminating by the 


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1 withdrawal of every employer from the 

2 plan, and 

3 ‘‘(ii) by determining the value of non4 forfeitable benefits under the plan at the 

5 time of the deemed termination by using 

6 the interest assumptions prescribed for 

7 purposes of section 4044, as prescribed in 

8 the regulations under section 4281 in the 

9 case of such a mass withdrawal. 

10 ‘‘(B) ANNUITY CONTRACTS AND INVEST11 MENT PORTFOLIOS PURCHASED WITH LOAN

12 FUNDS.—Annuity contracts purchased and 

13 portfolios implemented under section 4(d)(3) of 

14 the Rehabilitation for Multiemployer Pensions 

15 Act shall not be taken into account in deter16 mining the withdrawal liability of any employer 

17 under subparagraph (A), but the amount equal 

18 to the greater of— 

19 ‘‘(i) the benefits provided under such 

20 contracts or portfolios to participants and 

21 beneficiaries, or 

22 ‘‘(ii) the remaining payments due on 

23 the loan under section 4(a) of such Act, 

24 shall be so taken into account. 


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1 ‘‘(2) COORDINATION WITH FUNDING REQUIRE2 MENTS.—In the case of a plan which receives a loan 

3 under section 4(a) of the Rehabilitation for Multiem4 ployer Pensions Act— 

5 ‘‘(A) annuity contracts purchased and 

6 portfolios implemented under section 4(d)(3) of 

7 such Act, and the benefits provided to partici8 pants and beneficiaries under such contracts or 

9 portfolios, shall not be taken into account in de10 termining minimum required contributions 

11 under section 302, 

12 ‘‘(B) payments on the interest and prin13 cipal under the loan, and any benefits owed in 

14 excess of those provided under such contracts 

15 or portfolios, shall be taken into account as li16 abilities for purposes of such section, and 

17 ‘‘(C) if such a portfolio is projected due to 

18 unfavorable investment or actuarial experience 

19 to be unable to fully satisfy the liabilities which 

20 it covers, the amount of the liabilities projected 

21 to be unsatisfied shall be taken into account as 

22 liabilities for purposes of such section.’’. 

23 SEC. 6. ISSUANCE OF TREASURY BONDS. 

24 (a) IN GENERAL.—The Secretary of the Treasury 

25 shall issue bonds as authorized by section 3102 of title 


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1 31, United States Code, in an amount necessary to fund 

2 the loan program under section 4 of this Act, as deter3 mined in consultation with the Director of the Pension Re4 habilitation Administration established under section 2. 

5 (b) TRANSFERS TO PENSION REHABILITATION

6 TRUST FUND.—The Secretary of the Treasury shall from 

7 time to time transfer an amount equal to the proceeds of 

8 the issue under subsection (a), from the general fund of 

9 the Treasury to the Pension Rehabilitation Trust Fund 

10 established under section 9512 of the Internal Revenue 

11 Code of 1986. 

12 SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHA13 BILITATION LOANS. 

14 (a) IN GENERAL.—Subpart E of part III of sub15 chapter A of chapter 61 of the Internal Revenue Code of 

16 1986 is amended by adding at the end the following new 

17 section: 

18 ‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE19 HABILITATION LOANS. 

20 ‘‘(a) IN GENERAL.—In the case of a plan receiving 

21 a loan under section 4(a) of the Rehabilitation for Multi22 employer Pensions Act, with respect to the first plan year 

23 beginning after the date of the loan and each of the 29 

24 succeeding plan years, not later than the 90th day of each 

25 such plan year the plan sponsor shall file with the SecVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 retary a report (including appropriate documentation and 

2 actuarial certifications from the plan actuary, as required 

3 by the Secretary) that contains— 

4 ‘‘(1) the funded percentage (as defined in sec5 tion 432(i)(2)) as of the first day of such plan year, 

6 and the underlying actuarial value of assets (deter7 mined with regard, and without regard, to annuity 

8 contracts purchased and portfolios implemented with 

9 proceeds of such loan) and liabilities (including any 

10 amounts due with respect to such loan) taken into 

11 account in determining such percentage, 

12 ‘‘(2) the market value of the assets of the plan 

13 (determined as provided in paragraph (1)) as of the 

14 last day of the plan year preceding such plan year, 

15 ‘‘(3) the total value of all contributions made by 

16 employers and employees during the plan year pre17 ceding such plan year, 

18 ‘‘(4) the total value of all benefits paid during 

19 the plan year preceding such plan year, 

20 ‘‘(5) cash flow projections for such plan year 

21 and the 9 succeeding plan years, and the assump22 tions used in making such projections, 

23 ‘‘(6) funding standard account projections for 

24 such plan year and the 9 succeeding plan years, and 


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1 the assumptions relied upon in making such projec2 tions, 

3 ‘‘(7) the total value of all investment gains or 

4 losses during the plan year preceding such plan year, 

5 ‘‘(8) any significant reduction in the number of 

6 active participants during the plan year preceding 

7 such plan year, and the reason for such reduction, 

8 ‘‘(9) a list of employers that withdrew from the 

9 plan in the plan year preceding such plan year, and 

10 the resulting reduction in contributions, 

11 ‘‘(10) a list of employers that paid withdrawal 

12 liability to the plan during the plan year preceding 

13 such plan year and, for each employer, a total as14 sessment of the withdrawal liability paid, the annual 

15 payment amount, and the number of years remain16 ing in the payment schedule with respect to such 

17 withdrawal liability, 

18 ‘‘(11) any material changes to benefits, accrual 

19 rates, or contribution rates during the plan year pre20 ceding such plan year, and whether such changes re21 late to the terms of the loan, 

22 ‘‘(12) details regarding any funding improve23 ment plan or rehabilitation plan and updates to such 

24 plan, 


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1 ‘‘(13) the number of participants and bene2 ficiaries during the plan year preceding such plan 

3 year who are active participants, the number of par4 ticipants and beneficiaries in pay status, and the 

5 number of terminated vested participants and bene6 ficiaries, 

7 ‘‘(14) the amount of any financial assistance re8 ceived under section 4261 of the Employee Retire9 ment Income Security Act of 1974 to pay benefits 

10 during the preceding plan year, and the total 

11 amount of such financial assistance received for all 

12 preceding years, 

13 ‘‘(15) the information contained on the most re14 cent annual funding notice submitted by the plan 

15 under section 101(f) of the Employee Retirement In16 come Security Act of 1974, 

17 ‘‘(16) the information contained on the most re18 cent annual return under section 6058 and actuarial 

19 report under section 6059 of the plan, and 

20 ‘‘(17) copies of the plan document and amend21 ments, other retirement benefit or ancillary benefit 

22 plans relating to the plan and contribution obliga23 tions under such plans, a breakdown of administra24 tive expenses of the plan, participant census data 

25 and distribution of benefits, the most recent actuVerDate Sep 11 2014 01:32 Nov 23, 2017 Jkt 079200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H4444.IH H4444

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1 arial valuation report as of the plan year, copies of 

2 collective bargaining agreements, and financial re3 ports, and such other information as the Secretary, 

4 in consultation with the Director of the Pension Re5 habilitation Administration, may require. 

6 ‘‘(b) ELECTRONIC SUBMISSION.—The report re7 quired under subsection (a) shall be submitted electroni8 cally. 

9 ‘‘(c) INFORMATION SHARING.—The Secretary shall 

10 share the information in the report under subsection (a) 

11 with the Secretary of Labor and the Director of the Pen12 sion Benefit Guaranty Corporation. 

13 ‘‘(d) REPORT TO PARTICIPANTS, BENEFICIARIES, 

14 AND EMPLOYERS.—Each plan sponsor required to file a 

15 report under subsection (a) shall, before the expiration of 

16 the time prescribed for the filing of such report, also pro17 vide a summary (written in a manner so as to be under18 stood by the average plan participant) of the information 

19 in such report to participants and beneficiaries in the plan 

20 and to each employer with an obligation to contribute to 

21 the plan.’’. 

22 (b) PENALTY.—Subsection (e) of section 6652 of the 

23 Internal Revenue Code of 1986 is amended— 


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1 (1) by inserting ‘‘, 6059A (relating to reports of 

2 plans receiving pension rehabilitation loans)’’ after 

3 ‘‘deferred compensation)’’; 

4 (2) by inserting ‘‘($100 in the case of failures 

5 under section 6059A)’’ after ‘‘$25’’; and 

6 (3) by adding at the end the following: ‘‘In the 

7 case of a failure with respect to section 6059A, the 

8 amount imposed under this subsection shall not be 

9 paid from the assets of the plan.’’. 

10 (c) CLERICAL AMENDMENT.—The table of sections 

11 for subpart E of part III of subchapter A of chapter 61 

12 of the Internal Revenue Code of 1986 is amended by add13 ing at the end the following new item: 

‘‘Sec. 6059A. Reports of plans receiving pension rehabilitation loans.’’. 

14 SEC. 8. PBGC FINANCIAL ASSISTANCE. 

15 (a) IN GENERAL.—Section 4261 of the Employee Re16 tirement Income Security Act of 1974 (29 U.S.C. 1431) 

17 is amended by adding at the end the following new sub18 section: 

19 ‘‘(d)(1) The plan sponsor of a multiemployer plan— 

20 ‘‘(A) which is in critical and declining status 

21 (within the meaning of section 305(b)(6)), or 

22 ‘‘(B) which is insolvent but has not been termi23 nated and is receiving assistance from the corpora24 tion (other than assistance under this subsection), 


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1 and which is applying for a loan under section 4(a) of the 

2 Rehabilitation for Multiemployer Pensions Act may also 

3 apply to the corporation for financial assistance under this 

4 subsection, by jointly submitting such applications in ac5 cordance with section 4(d)(2) of such Act. The application 

6 for financial assistance under this subsection shall dem7 onstrate, based on projections by the plan actuary, that 

8 after the receipt of the anticipated loan amount under sec9 tion 4(a) of such Act, the plan will still become (or remain) 

10 insolvent within the 30-year period beginning on the date 

11 of the loan. 

12 ‘‘(2) In the case of a plan described in paragraph 

13 (1)(A), the financial assistance provided pursuant to such 

14 application under this subsection shall be the amount (de15 termined by the plan actuary and submitted on the appli16 cation) equal to the sum of— 

17 ‘‘(A) the percentage of benefits of participants 

18 and beneficiaries of the plan in pay status at the 

19 time of the application, and 

20 ‘‘(B) the percentage of future benefits to which 

21 participants who have separated from service but are 

22 not yet in pay status are entitled, 

23 which, if such percentage were paid by the corporation in 

24 combination with the loan, would allow the plan to avoid 

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1 ing assets over any 5-year period following the repayment 

2 of the loan. Such amount shall not exceed the maximum 

3 guaranteed benefit with respect to all participants and 

4 beneficiaries of the plan under sections 4022A and 4022B. 

5 For this purpose, the maximum guaranteed benefit 

6 amount shall be determined by disregarding any loan 

7 available from the Pension Rehabilitation Administration 

8 and shall be determined as if the plan were insolvent on 

9 the date of the application. Further, the present value of 

10 the maximum guaranteed benefit amount with respect to 

11 such participants and beneficiaries may be calculated in 

12 the aggregate, rather than by reference to the benefit of 

13 each such participant or beneficiary. 

14 ‘‘(3) In the case of a plan described in paragraph 

15 (1)(B), the financial assistance provided pursuant to such 

16 application under this subsection shall be the amount (de17 termined by the plan actuary and submitted on the appli18 cation) which, if such amount were paid by the corporation 

19 in combination with the loan and any other assistance 

20 being provided to the plan by the corporation at the time 

21 of the application, would enable the plan to emerge from 

22 insolvency. 

23 ‘‘(4) Subsections (b) and (c) shall apply to financial 

24 assistance under this subsection as if it were provided 

25 under subsection (a), except that the terms for repayment 


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1 under subsection (b)(2) shall not require the financial as2 sistance to be repaid before the date on which the loan 

3 under section 4(a) of the Rehabilitation for Multiemployer 

4 Pensions Act is repaid in full. 

5 ‘‘(5) The corporation may forgo repayment of the fi6 nancial assistance provided under this subsection if nec7 essary to avoid any suspension of the accrued benefits of 

8 participants.’’. 

9 (b) APPROPRIATIONS.—There is appropriated to the 

10 Director of the Pension Benefit Guaranty Corporation 

11 such sums as may be necessary for each fiscal year to pro12 vide the financial assistance described in section 4261(d) 

13 of the Employee Retirement Income Security Act of 1974 

14 (29 U.S.C. 1431(d)) (as added by this section) (including 

15 necessary administrative and operating expenses relating 

16 to such assistance). 

Æ 


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