I 

112TH CONGRESS 

1ST SESSION H. R. 1969 

To provide for private-sector solutions to certain pension funding challenges, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2011 

Ms. JENKINS (for herself, Mr. CLEAVER, and Mr. YODER) introduced the following bill; which was referred to the Committee on Education and the 

Workforce, 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 for private-sector solutions to certain pension 

funding challenges, and for other purposes. 

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


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1 SECTION 1. REDUCTIONS IN CONTRIBUTIONS TO MULTIEM2 PLOYER PLANS TO IMPLEMENT SELF-HELP 

3 MEASURES ADOPTED BY LABOR AND MAN4 AGEMENT. 

5 (a) AMENDMENTS TO ERISA.—Section 305 of the 

6 Employee Retirement Income Security Act of 1974 (29 

7 U.S.C. 1085) is amended— 

8 (1) by redesignating subsection (i) as subsection 

9 (j); and 

10 (2) by inserting after subsection (h) the fol11 lowing: 

12 ‘‘(i) DISCRETION TO ACCEPT REDUCED CONTRIBU13 TIONS.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding any other 

15 provision of this section, during the funding plan 

16 adoption period, funding improvement period, reha17 bilitation plan adoption period, and the rehabilita18 tion period, the Pension Benefit Guaranty Corpora19 tion may permit a plan sponsor to accept from an 

20 employer a ratified collective bargaining agreement 

21 with respect to the multiemployer plan that provides 

22 for a reduction in the level of contributions made by 

23 a contributing employer and appropriate reduction 

24 in level of future benefit accruals for any partici25 pants for a period of not more than 5 years (or such 


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1 shorter period as determined by such Corporation) 

2 provided that such Corporation determines that— 

3 ‘‘(A) the contributing employer will be un4 able to pay its debts when due and will be un5 able to continue business without a reduction in 

6 its contribution rates; 

7 ‘‘(B) the aggregate withdrawal liability of 

8 the contributing employer with respect to all 

9 multiemployer pension plans exceeds 

10 $750,000,000, or such lower amount as deter11 mined to be appropriate by such Corporation; 

12 ‘‘(C) there is substantial doubt as to the 

13 collectability of the withdrawal liability if the 

14 contributing employer were to withdraw from 

15 the plan; 

16 ‘‘(D) the reduced contributions are not 

17 reasonably expected to have an adverse effect 

18 on the deficit of such Corporation; 

19 ‘‘(E) other creditors, stakeholders, and 

20 other parties to which the contributing em21 ployer is obligated have accepted reductions 

22 that are comparable to those of the pension 

23 plan; and 


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1 ‘‘(F) such other conditions are satisfied as 

2 may be imposed in accordance with regulations 

3 prescribed by such Corporation. 

4 ‘‘(2) IMPACT ON WITHDRAWAL LIABILITY DE5 TERMINATIONS.—Any reduction in the level of con6 tributions under this subsection shall be disregarded 

7 in determining any limitation on annual payments 

8 under subparagraphs (B) and (C) of section 

9 4219(c)(1) and in determining withdrawal liability 

10 under section 4201 with respect to the employer 

11 subject to the reduced contribution rate.’’. 

12 (b) AMENDMENTS TO INTERNAL REVENUE CODE.— 

13 Section 432 of the Internal Revenue Code of 1986 is 

14 amended— 

15 (1) by redesignating subsection (i) as subsection 

16 (j); and 

17 (2) by inserting after subsection (h) the fol18 lowing: 

19 ‘‘(i) DISCRETION TO ACCEPT REDUCED CONTRIBU20 TIONS.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any other 

22 provision of this section, during the funding plan 

23 adoption period, funding improvement period, reha24 bilitation plan adoption period, and the rehabilita25 tion period, the Pension Benefit Guaranty CorporaVerDate Mar 15 2010 22:11 May 31, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1969.IH H1969

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1 tion may permit a plan sponsor to accept from an 

2 employer a ratified collective bargaining agreement 

3 with respect to the multiemployer plan that provides 

4 for a reduction in the level of contributions made by 

5 a contributing employer and appropriate reduction 

6 in level of future benefit accruals for any partici7 pants for a period of not more than 5 years (or such 

8 shorter period as determined by such Corporation) 

9 provided that such Corporation determines that— 

10 ‘‘(A) the contributing employer will be un11 able to pay its debts when due and will be un12 able to continue business without a reduction in 

13 its contribution rates; 

14 ‘‘(B) the aggregate withdrawal liability of 

15 the contributing employer with respect to all 

16 multiemployer pension plans exceeds 

17 $750,000,000, or such lower amount as deter18 mined by such Corporation; 

19 ‘‘(C) there is substantial doubt as to the 

20 collectability of the withdrawal liability if the 

21 contributing employer were to withdraw from 

22 the plan; 

23 ‘‘(D) the reduced contributions are not 

24 reasonably expected to have an adverse effect 

25 on the deficit of such Corporation; 


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1 ‘‘(E) other creditors, stakeholders, and 

2 other parties to which the contributing em3 ployer is obligated have accepted reductions 

4 that are comparable to those of the pension 

5 plan; and 

6 ‘‘(F) such other conditions are satisfied as 

7 may be imposed in accordance with regulations 

8 prescribed by such Corporation. 

9 ‘‘(2) IMPACT ON WITHDRAWAL LIABILITY DE10 TERMINATIONS.—Any reduction in the level of con11 tributions under this subsection shall be disregarded 

12 in determining any limitation on annual payments 

13 under subparagraphs (B) and (C) of section 

14 4219(c)(1) of the Employee Retirement Income Se15 curity Act of 1974 and in determining withdrawal li16 ability under section 4201 of such Act with respect 

17 to the employer subject to the reduced contribution 

18 rate.’’. 

19 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

20 (1) Section 4971(g)(4)(C)(ii) of the Internal 

21 Revenue Code of 1986 is amended by striking 

22 ‘‘432(i)(9)’’ and inserting ‘‘432(j)(9)’’. 

23 (2) Sections 101(f)(2)(B) and 103(f)(1)(B) of 

24 the Employee Retirement Income Security Act of 

25 1974 (29 U.S.C. 1021(f)(2)(B) and 1023(f)(1)(B)) 


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1 are each amended by striking ‘‘305(i)’’ each place 

2 such term appears and inserting ‘‘305(j)’’. 

Æ 


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