II 

115TH CONGRESS 

1ST SESSION S. 2147 

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 SENATE OF THE UNITED STATES 

NOVEMBER 16, 2017 

Mr. BROWN (for himself, Ms. STABENOW, Mr. MANCHIN, Ms. HEITKAMP, Ms. 

BALDWIN, Mrs. MCCASKILL, Mr. FRANKEN, Ms. KLOBUCHAR, Mr. DURBIN, Mr. PETERS, Mr. DONNELLY, and Ms. DUCKWORTH) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

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. 

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 ‘‘Butch Lewis Act of 

5 2017’’. 


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1 SEC. 2. PENSION REHABILITATION ADMINISTRATION; ES2 TABLISHMENT; POWERS. 

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

4 Department of the Treasury an agency to be known as 

5 the ‘‘Pension Rehabilitation Administration’’. 

6 (b) DIRECTOR.— 

7 (1) ESTABLISHMENT OF POSITION.—There 

8 shall be at the head of the Pension Rehabilitation 

9 Administration a Director, who shall be appointed 

10 by the President. 

11 (2) TERM.— 

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

13 the Director shall be 5 years. 

14 (B) SERVICE UNTIL APPOINTMENT OF

15 SUCCESSOR.—An individual serving as Director 

16 at the expiration of a term may continue to 

17 serve until a successor is appointed. 

18 (3) POWERS.— 

19 (A) APPOINTMENT OF DEPUTY DIREC20 TORS, OFFICERS, AND EMPLOYEES.—The Di21 rector may appoint Deputy Directors, officers, 

22 and employees, including attorneys, in accord23 ance with chapter 51 and subchapter III of 

24 chapter 53 of title 5, United States Code. 

25 (B) CONTRACTING.— 


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1 (i) IN GENERAL.—The Director may 

2 contract for financial and administrative 

3 services (including those related to budget 

4 and accounting, financial reporting, per5 sonnel, and procurement) with the General 

6 Services Administration, or such other 

7 Federal agency as the Director determines 

8 appropriate, for which payment shall be 

9 made in advance, or by reimbursement, 

10 from funds of the Pension Rehabilitation 

11 Administration in such amounts as may be 

12 agreed upon by the Director and the head 

13 of the Federal agency providing the serv14 ices. 

15 (ii) SUBJECT TO APPROPRIATIONS.— 

16 Contract authority under clause (i) shall be 

17 effective for any fiscal year only to the ex18 tent that appropriations are available for 

19 that purpose. 

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

21 Treasury may transfer for any fiscal year, from unobli22 gated amounts appropriated to the Department of the 

23 Treasury, to the Pension Rehabilitation Administration 

24 such sums as may be reasonably necessary for the adminVerDate Sep 11 2014 05:00 Nov 22, 2017 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2147.IS S2147

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1 istrative and operating expenses of the Pension Rehabilita2 tion Administration. 

3 SEC. 3. PENSION REHABILITATION TRUST FUND. 

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

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new section: 

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

8 ‘‘(a) CREATION OF TRUST FUND.—There is estab9 lished in the Treasury of the United States a trust fund 

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

11 (hereafter in this section referred to as the ‘Fund’), con12 sisting of such amounts as may be appropriated or cred13 ited to such Trust Fund as provided in this section and 

14 section 9602(b). 

15 ‘‘(b) TRANSFERS TO FUND.— 

16 ‘‘(1) AMOUNTS ATTRIBUTABLE TO TREASURY

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

18 amounts transferred under section 6(b) of the Butch 

19 Lewis Act of 2017. 

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

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

22 Pension Rehabilitation Administration estab23 lished under section 2 of the Butch Lewis Act 

24 of 2017 shall deposit in the Fund any amounts 


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1 received from a plan as payment of interest or 

2 principal on a loan under section 4 of such Act. 

3 ‘‘(B) INTEREST.—For purposes of sub4 paragraph (A), the term ‘interest’ includes 

5 points and other similar amounts. 

6 ‘‘(3) TRANSFERS FROM SECRETARY.—The Di7 rector of the Pension Rehabilitation Administration 

8 shall deposit in the Fund any amounts received from 

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

10 ‘‘(4) AVAILABILITY OF FUNDS.—Amounts cred11 ited to or deposited in the Fund shall remain avail12 able until expended. 

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

14 Fund are available without further appropriation to the 

15 Pension Rehabilitation Administration— 

16 ‘‘(1) for the purpose of making the loans de17 scribed in section 4 of the Butch Lewis Act of 2017, 

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

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

20 ‘‘(3) for administrative and operating expenses 

21 of such Administration.’’. 

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

23 for subchapter A of chapter 98 of the Internal Revenue 

24 Code of 1986 is amended by adding at the end the fol25 lowing new item: 

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


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1 SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 

2 BENEFIT PLANS. 

3 (a) LOAN AUTHORITY.— 

4 (1) IN GENERAL.—The Pension Rehabilitation 

5 Administration established under section 2 is au6 thorized— 

7 (A) to make loans to multiemployer plans 

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

9 Revenue Code of 1986) which are defined ben10 efit plans (as defined in section 414(j) of such 

11 Code) and which— 

12 (i) are in critical and declining status 

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

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

15 Act), including any plan with respect to 

16 which a suspension of benefits has been 

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

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

19 (ii) are insolvent for purposes of sec20 tion 418E of such Code, if they became in21 solvent after December 16, 2014, and have 

22 not been terminated; and 

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

24 appropriate terms for such loans. 

25 (2) CONSULTATION.—The Director of the Pen26 sion Rehabilitation Administration shall consult with 


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1 the Secretary of the Treasury, the Secretary of 

2 Labor, and the Director of the Pension Benefit 

3 Guaranty Corporation before making any loan under 

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

5 application and plan information with respect to 

6 each such loan. 

7 (3) ESTABLISHMENT OF LOAN PROGRAM.— 

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

9 loans authorized under this section shall be es10 tablished not later than March 31, 2018, with 

11 guidance regarding such program to be promul12 gated by the Director of the Pension Rehabilita13 tion Administration, in consultation with the 

14 Pension Benefit Guaranty Corporation and the 

15 Department of Labor, not later than June 1, 

16 2018. 

17 (B) LOANS AUTHORIZED BEFORE PRO18 GRAM DATE.—Without regard to whether the 

19 program under subparagraph (A) has been es20 tablished, a plan may apply for a loan under 

21 this section before either date described in such 

22 subparagraph, and the Pension Rehabilitation 

23 Administration shall approve the application 

24 and make the loan before establishment of the 


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1 program if necessary to avoid any suspension of 

2 the accrued benefits of participants. 

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

4 under subsection (a) shall state that— 

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

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

7 date of the loan; 

8 (2) final payment of interest and principal shall 

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

10 and 

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

12 stipulates that— 

13 (A) except as provided in subparagraph 

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

15 any employer participating in the plan to re16 duce its contributions, or accept any collective 

17 bargaining agreement which provides for re18 duced contribution rates, during the 30-year pe19 riod described in paragraphs (1) and (2); 

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

21 which a suspension of benefits has been ap22 proved under section 432(e)(9) of the Internal 

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

24 the Employee Retirement Income Security Act 

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


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1 before the loan, the plan will reinstate the sus2 pended benefits (or will not carry out any sus3 pension which has been approved but not yet 

4 implemented); 

5 (C) the plan sponsor will comply with the 

6 requirements of section 6059A of the Internal 

7 Revenue Code of 1986; and 

8 (D) the plan and plan administrator will 

9 meet such other requirements as the Director of 

10 the Pension Rehabilitation Administration pro11 vides in the loan terms. 

12 (c) LOAN APPLICATION.— 

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

14 subsection (a), the plan sponsor shall— 

15 (A) demonstrate that, except as provided 

16 in subparagraph (C)— 

17 (i) the loan will enable the plan to 

18 avoid insolvency for at least the 30-year 

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

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

21 which is already insolvent, to emerge from 

22 insolvency within and avoid insolvency for 

23 the remainder of such period; and 

24 (ii) the plan is reasonably expected to 

25 be able to pay benefits and the interest on 


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1 the loan during such period and to accu2 mulate sufficient funds to repay the prin3 cipal when due; 

4 (B) provide the information necessary to 

5 determine the loan amount under subsection 

6 (d); 

7 (C) stipulate whether the plan is also ap8 plying for financial assistance under section 

9 4261(d) of the Employee Retirement Income 

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

11 combination with the loan to enable the plan to 

12 avoid insolvency and to pay benefits, or is al13 ready receiving such financial assistance as a 

14 result of a previous application; 

15 (D) state in what manner the loan pro16 ceeds will be invested pursuant to subsection 

17 (d), the person from whom any annuity con18 tracts under such subsection will be purchased, 

19 and the person who will be the investment man20 ager for any portfolio implemented under such 

21 subsection; and 

22 (E) include such other information and 

23 certifications as the Director of the Pension Re24 habilitation Administration shall require. 


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1 (2) STANDARD FOR ACCEPTING ACTUARIAL AND

2 PLAN SPONSOR DETERMINATIONS AND DEMONSTRA3 TIONS IN THE APPLICATION.—In evaluating the plan 

4 sponsor’s application, the Director of the Pension 

5 Rehabilitation Administration shall accept the deter6 minations and demonstrations in the application un7 less the Director, in consultation with the Director 

8 of the Pension Benefit Guaranty Corporation and 

9 the Secretary of Labor, concludes that the deter10 minations and demonstrations in the application 

11 were clearly erroneous. 

12 (3) REQUIRED ACTION; DEEMED APPROVAL.— 

13 The Director of the Pension Rehabilitation Adminis14 tration shall approve or deny any application under 

15 this subsection within 90 days after the submission 

16 of such application. An application shall be deemed 

17 approved unless, within such 90 days, the Director 

18 notifies the plan sponsor that the determinations or 

19 demonstrations in the application were deemed clear20 ly erroneous under paragraph (2). Any approval or 

21 denial of an application by the Director of the Pen22 sion Rehabilitation Administration shall be treated 

23 as a final agency action for purposes of section 704 

24 of title 5, United States Code. 


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1 (4) CERTAIN PLANS REQUIRED TO APPLY.— 

2 The plan sponsor of any plan with respect to which 

3 a suspension of benefits has been approved under 

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

5 1986 and section 305(e)(9) of the Employee Retire6 ment Income Security Act of 1974 or under section 

7 418E of such Code, before the date of the enactment 

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

9 The Director of the Pension Rehabilitation Adminis10 tration shall provide for such plan sponsors to use 

11 the simplified application under subsection 

12 (d)(2)(B). 

13 (d) LOAN AMOUNT AND USE.— 

14 (1) AMOUNT OF LOAN.— 

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

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

17 amount of any loan under subsection (a) shall 

18 be, as demonstrated by the plan sponsor on the 

19 application under subsection (c), the amount 

20 needed to purchase annuity contracts or to im21 plement a portfolio described in paragraph 

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

23 to provide benefits of participants and bene24 ficiaries of the plan in pay status at the time 

25 the loan is made. 


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1 (B) PLANS WITH SUSPENDED BENE2 FITS.—In the case of a plan which has sus3 pended benefits under section 432(e)(9) of the 

4 Internal Revenue Code of 1986 and section 

5 305(e)(9) of the Employee Retirement Income 

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

7 under section 418E of such Code— 

8 (i) the suspension of benefits shall not 

9 be taken into account in applying para10 graph (1); and 

11 (ii) the loan amount shall be the 

12 amount sufficient to provide benefits of 

13 participants and beneficiaries of the plan 

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

15 determined without regard to the suspen16 sion, including retroactive payment of ben17 efits which would otherwise have been pay18 able during the period of the suspension. 

19 (2) COORDINATION WITH PBGC FINANCIAL AS20 SISTANCE.— 

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

22 which is also applying for financial assistance 

23 under section 4261(d) of the Employee Retire24 ment Income Security Act of 1974 (29 U.S.C. 

25 1431(d))— 


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1 (i) the plan sponsor shall submit the 

2 loan application and the application for fi3 nancial assistance jointly to the Pension 

4 Rehabilitation Administration and the Pen5 sion Benefit Guaranty Corporation with 

6 the information necessary to determine the 

7 amount under subparagraph (B); and 

8 (ii) if such financial assistance is 

9 granted, the amount of the loan under sub10 section (a) shall be the amount described 

11 in paragraph (1) reduced by the amount of 

12 such financial assistance. 

13 (B) PLANS ALREADY RECEIVING PBGC AS14 SISTANCE.—The Director of the Pension Reha15 bilitation Administration shall provide for a 

16 simplified application for the loan under this 

17 section which may be used by an insolvent plan 

18 which has not been terminated and which is al19 ready receiving financial assistance (other than 

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

21 Pension Benefit Guaranty Corporation at the 

22 time of the application for the loan under this 

23 section. 

24 (3) USE OF LOAN FUNDS.— 


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1 (A) IN GENERAL.—The loan received 

2 under subsection (a) shall be used to purchase 

3 annuity contracts which meet the requirements 

4 of subparagraph (B) or to implement a port5 folio described in subparagraph (C) (or a com6 bination of the two) to provide the benefits de7 scribed in paragraph (1). 

8 (B) ANNUITY CONTRACT REQUIRE9 MENTS.—The annuity contracts purchased 

10 under subparagraph (A) shall be issued by an 

11 insurance company which is licensed to do busi12 ness under the laws of any State and which is 

13 rated A or better by a nationally recognized sta14 tistical rating organization, and the purchase of 

15 such contracts shall meet all applicable fidu16 ciary standards under the Employee Retirement 

17 Income Security Act of 1974. 

18 (C) PORTFOLIO.— 

19 (i) IN GENERAL.—A portfolio de20 scribed in this subparagraph is— 

21 (I) a cash matching portfolio or 

22 duration matching portfolio consisting 

23 of investment grade (as rated by a na24 tionally recognized statistical rating 

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1 ments, including United States dollar2 denominated public or private debt 

3 obligations issued or guaranteed by 

4 the United States or a foreign issuer, 

5 which are tradeable in United States 

6 currency and are issued at fixed or 

7 zero coupon rates; or 

8 (II) any other portfolio pre9 scribed by the Secretary of the Treas10 ury in regulations which has a similar 

11 risk profile to the portfolios described 

12 in subclause (I) and is equally protec13 tive of the interests of participants 

14 and beneficiaries. 

15 Once implemented, such a portfolio shall 

16 be maintained until all liabilities to partici17 pants and beneficiaries in pay status at the 

18 time of the loan are satisfied. 

19 (ii) FIDUCIARY DUTY.—Any invest20 ment manager of a portfolio under this 

21 subparagraph shall acknowledge in writing 

22 that such person is a fiduciary under the 

23 Employee Retirement Income Security Act 

24 of 1974 with respect to the plan. 


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1 (iii) TREATMENT OF PARTICIPANTS

2 AND BENEFICIARIES.—Participants and 

3 beneficiaries covered by a portfolio under 

4 this subparagraph shall continue to be 

5 treated as participants and beneficiaries of 

6 the plan. 

7 (D) ACCOUNTING.— 

8 (i) IN GENERAL.—Annuity contracts 

9 purchased and portfolios implemented 

10 under this paragraph shall be accounted 

11 for separately from the other assets of the 

12 plan, and the proceeds thereof shall be 

13 used solely to provide the benefits de14 scribed in paragraph (1) until all such ben15 efits have been paid. 

16 (ii) OVERSIGHT OF NON-ANNUITY IN17 VESTMENTS.— 

18 (I) IN GENERAL.—Any portfolio 

19 implemented under this paragraph 

20 shall be subject to oversight by the 

21 Pension Rehabilitation Administra22 tion, including a mandatory triennial 

23 review of the adequacy of the portfolio 

24 to provide the benefits described in 

25 paragraph (1) and approval (to be 


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1 provided within a reasonable period of 

2 time) of any decision by the plan 

3 sponsor to change the investment 

4 manager of the portfolio. 

5 (II) REMEDIAL ACTION.—If the 

6 triennial review under subclause (I) 

7 determines an inadequacy, the plan 

8 sponsor shall take remedial action to 

9 ensure that the inadequacy will be 

10 cured within 5 years of the review. 

11 (E) OMBUDSPERSON.—The Participant 

12 and Plan Sponsor Advocate established under 

13 section 4004 of the Employee Retirement In14 come Security Act of 1974 shall act as 

15 ombudsperson for participants and beneficiaries 

16 on behalf of whom annuity contracts are pur17 chased or who are covered by a portfolio under 

18 this paragraph. 

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

20 payment on a loan under this section when due, the Pen21 sion Rehabilitation Administration shall negotiate with the 

22 plan sponsor revised terms for repayment reflecting the 

23 plan’s ability to make payments, which may include in24 stallment payments over a reasonable period and, if the 

25 Pension Rehabilitation Administration deems necessary to 


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1 avoid any suspension of the accrued benefits of partici2 pants, forgiveness of a portion of the loan principal. 

3 (f) AUTHORITY TO ISSUE RULES, ETC.—The Direc4 tor of the Pension Rehabilitation Administration estab5 lished under section 2, in consultation with the Pension 

6 Benefit Guaranty Corporation and the Department of 

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

8 content, and process of applications for loans under this 

9 section, actuarial standards and assumptions to be used 

10 in making estimates and projections for purposes of such 

11 applications, and assumptions regarding interest rates, 

12 mortality, and distributions with respect to a portfolio de13 scribed in subsection (d)(3)(C). 

14 (g) COORDINATION WITH TAXATION OF UNRELATED

15 BUSINESS INCOME.—Subparagraph (A) of section 

16 514(c)(6) of the Internal Revenue Code of 1986 is amend17 ed— 

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

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

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

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

22 clause: 

23 ‘‘(iii) indebtedness with respect to a 

24 multiemployer plan under a loan made by 

25 the Pension Rehabilitation Administration 


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1 pursuant to section 4 of the Butch Lewis 

2 Act of 2017.’’. 

3 SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND 

4 FUNDING RULES. 

5 (a) AMENDMENT TO INTERNAL REVENUE CODE OF

6 1986.—Section 432 of the Internal Revenue Code of 1986 

7 is amended by adding at the end the following new sub8 section: 

9 ‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN10 SION REHABILITATION LOANS.— 

11 ‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL12 ITY.— 

13 ‘‘(A) IN GENERAL.—If any employer par14 ticipating in a plan at the time the plan receives 

15 a loan under section 4(a) of the Butch Lewis 

16 Act of 2017 withdraws from the plan before the 

17 end of the 30-year period beginning on the date 

18 of the loan, the withdrawal liability of such em19 ployer shall be determined under the Employee 

20 Retirement Income Security Act of 1974— 

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

22 of the Employee Retirement Income Secu23 rity Act of 1974 as if the plan were termi24 nating by the withdrawal of every employer 

25 from the plan, and 


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1 ‘‘(ii) by determining the value of non2 forfeitable benefits under the plan at the 

3 time of the deemed termination by using 

4 the interest assumptions prescribed for 

5 purposes of section 4044 of the Employee 

6 Retirement Income Security Act of 1974, 

7 as prescribed in the regulations under sec8 tion 4281 of the Employee Retirement In9 come Security Act of 1974 in the case of 

10 such a mass withdrawal. 

11 ‘‘(B) ANNUITY CONTRACTS AND INVEST12 MENT PORTFOLIOS PURCHASED WITH LOAN

13 FUNDS.—Annuity contracts purchased and 

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

15 the Butch Lewis Act of 2017 shall not be taken 

16 into account in determining the withdrawal li17 ability of any employer under subparagraph 

18 (A), but the amount equal 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 Butch Lewis Act of 

4 2017— 

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 412, 

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 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN24 COME SECURITY ACT OF 1974.—Section 305 of the Em25 ployee Retirement Income Security Act of 1974 (29 


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1 U.S.C. 1085) is amended by adding at the end the fol2 lowing new subsection: 

3 ‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN4 SION REHABILITATION LOANS.— 

5 ‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL6 ITY.— 

7 ‘‘(A) IN GENERAL.—If any employer par8 ticipating in a plan at the time the plan receives 

9 a loan under section 4(a) of the Butch Lewis 

10 Act of 2017 withdraws from the plan before the 

11 end of the 30-year period beginning on the date 

12 of the loan, the withdrawal liability of such em13 ployer shall be determined— 

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

15 as if the plan were terminating by the 

16 withdrawal of every employer from the 

17 plan, and 

18 ‘‘(ii) by determining the value of non19 forfeitable benefits under the plan at the 

20 time of the deemed termination by using 

21 the interest assumptions prescribed for 

22 purposes of section 4044, as prescribed in 

23 the regulations under section 4281 in the 

24 case of such a mass withdrawal. 


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1 ‘‘(B) ANNUITY CONTRACTS AND INVEST2 MENT PORTFOLIOS PURCHASED WITH LOAN

3 FUNDS.—Annuity contracts purchased and 

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

5 the Butch Lewis Act of 2017 shall not be taken 

6 into account in determining the withdrawal li7 ability of any employer under subparagraph 

8 (A), but the amount equal to the greater of— 

9 ‘‘(i) the benefits provided under such 

10 contracts or portfolios to participants and 

11 beneficiaries, or 

12 ‘‘(ii) the remaining payments due on 

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

14 shall be so taken into account. 

15 ‘‘(2) COORDINATION WITH FUNDING REQUIRE16 MENTS.—In the case of a plan which receives a loan 

17 under section 4(a) of the Butch Lewis Act of 

18 2017— 

19 ‘‘(A) annuity contracts purchased and 

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

21 such Act, and the benefits provided to partici22 pants and beneficiaries under such contracts or 

23 portfolios, shall not be taken into account in de24 termining minimum required contributions 

25 under section 302, 


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1 ‘‘(B) payments on the interest and prin2 cipal under the loan, and any benefits owed in 

3 excess of those provided under such contracts 

4 or portfolios, shall be taken into account as li5 abilities for purposes of such section, and 

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

7 unfavorable investment or actuarial experience 

8 to be unable to fully satisfy the liabilities which 

9 it covers, the amount of the liabilities projected 

10 to be unsatisfied shall be taken into account as 

11 liabilities for purposes of such section.’’. 

12 SEC. 6. ISSUANCE OF TREASURY BONDS. 

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

14 shall issue bonds as authorized by section 3102 of title 

15 31, United States Code, in an amount necessary to fund 

16 the loan program under section 4 of this Act, as deter17 mined in consultation with the Director of the Pension Re18 habilitation Administration established under section 2. 

19 (b) TRANSFERS TO PENSION REHABILITATION

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

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

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

23 the Treasury to the Pension Rehabilitation Trust Fund 

24 established under section 9512 of the Internal Revenue 

25 Code of 1986. 


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1 SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHA2 BILITATION LOANS. 

3 (a) IN GENERAL.—Subpart E of part III of sub4 chapter A of chapter 61 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE8 HABILITATION LOANS. 

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

10 a loan under section 4(a) of the Butch Lewis Act of 2017, 

11 with respect to the first plan year beginning after the date 

12 of the loan and each of the 29 succeeding plan years, not 

13 later than the 90th day of each such plan year the plan 

14 sponsor shall file with the Secretary a report (including 

15 appropriate documentation and actuarial certifications 

16 from the plan actuary, as required by the Secretary) that 

17 contains— 

18 ‘‘(1) the funded percentage (as defined in sec19 tion 432(i)(2)) as of the first day of such plan year, 

20 and the underlying actuarial value of assets (deter21 mined with regard, and without regard, to annuity 

22 contracts purchased and portfolios implemented with 

23 proceeds of such loan) and liabilities (including any 

24 amounts due with respect to such loan) taken into 

25 account in determining such percentage, 


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

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

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

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

5 employers and employees during the plan year pre6 ceding such plan year, 

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

8 the plan year preceding such plan year, 

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

10 and the 9 succeeding plan years, and the assump11 tions used in making such projections, 

12 ‘‘(6) funding standard account projections for 

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

14 the assumptions relied upon in making such projec15 tions, 

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

17 losses during the plan year preceding such plan year, 

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

19 active participants during the plan year preceding 

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

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

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

23 the resulting reduction in contributions, 

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

25 liability to the plan during the plan year preceding 


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1 such plan year and, for each employer, a total as2 sessment of the withdrawal liability paid, the annual 

3 payment amount, and the number of years remain4 ing in the payment schedule with respect to such 

5 withdrawal liability, 

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

7 rates, or contribution rates during the plan year pre8 ceding such plan year, and whether such changes re9 late to the terms of the loan, 

10 ‘‘(12) details regarding any funding improve11 ment plan or rehabilitation plan and updates to such 

12 plan, 

13 ‘‘(13) the number of participants and bene14 ficiaries during the plan year preceding such plan 

15 year who are active participants, the number of par16 ticipants and beneficiaries in pay status, and the 

17 number of terminated vested participants and bene18 ficiaries, 

19 ‘‘(14) the amount of any financial assistance re20 ceived under section 4261 of the Employee Retire21 ment Income Security Act of 1974 to pay benefits 

22 during the preceding plan year, and the total 

23 amount of such financial assistance received for all 

24 preceding years, 


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1 ‘‘(15) the information contained on the most re2 cent annual funding notice submitted by the plan 

3 under section 101(f) of the Employee Retirement In4 come Security Act of 1974, 

5 ‘‘(16) the information contained on the most re6 cent annual return under section 6058 and actuarial 

7 report under section 6059 of the plan, and 

8 ‘‘(17) copies of the plan document and amend9 ments, other retirement benefit or ancillary benefit 

10 plans relating to the plan and contribution obliga11 tions under such plans, a breakdown of administra12 tive expenses of the plan, participant census data 

13 and distribution of benefits, the most recent actu14 arial valuation report as of the plan year, copies of 

15 collective bargaining agreements, and financial re16 ports, and such other information as the Secretary, 

17 in consultation with the Director of the Pension Re18 habilitation Administration, may require. 

19 ‘‘(b) ELECTRONIC SUBMISSION.—The report re20 quired under subsection (a) shall be submitted electroni21 cally. 

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

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

24 with the Secretary of Labor and the Director of the Pen25 sion Benefit Guaranty Corporation. 


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

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

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

4 the time prescribed for the filing of such report, also pro5 vide a summary (written in a manner so as to be under6 stood by the average plan participant) of the information 

7 in such report to participants and beneficiaries in the plan 

8 and to each employer with an obligation to contribute to 

9 the plan.’’. 

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

11 Internal Revenue Code of 1986 is amended— 

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

13 plans receiving pension rehabilitation loans)’’ after 

14 ‘‘deferred compensation)’’; 

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

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

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

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

19 amount imposed under this subsection shall not be 

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

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

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

23 of the Internal Revenue Code of 1986 is amended by add24 ing at the end the following new item: 

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


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1 SEC. 8. PBGC FINANCIAL ASSISTANCE. 

2 (a) IN GENERAL.—Section 4261 of the Employee Re3 tirement Income Security Act of 1974 (29 U.S.C. 1431) 

4 is amended by adding at the end the following new sub5 section: 

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

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

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

9 ‘‘(B) which is insolvent but has not been termi10 nated and is receiving assistance from the corpora11 tion (other than assistance under this subsection), 

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

13 Butch Lewis Act of 2017 may also apply to the corpora14 tion for financial assistance under this subsection, by 

15 jointly submitting such applications in accordance with 

16 section 4(d)(2) of such Act. The application for financial 

17 assistance under this subsection shall demonstrate, based 

18 on projections by the plan actuary, that after the receipt 

19 of the anticipated loan amount under section 4(a) of such 

20 Act, the plan will still become (or remain) insolvent within 

21 the 30-year period beginning on the date of the loan. 

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

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

24 application under this subsection shall be the amount (de25 termined by the plan actuary and submitted on the appli26 cation) equal to the sum of— 


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

2 and beneficiaries of the plan in pay status at the 

3 time of the application, and 

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

5 participants who have separated from service but are 

6 not yet in pay status are entitled, 

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

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

9 the projected insolvency and be projected to have increas10 ing assets over any 5-year period following the repayment 

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

12 guaranteed benefit with respect to all participants and 

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

14 For this purpose, the maximum guaranteed benefit 

15 amount shall be determined by disregarding any loan 

16 available from the Pension Rehabilitation Administration 

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

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

19 the maximum guaranteed benefit amount with respect to 

20 such participants and beneficiaries may be calculated in 

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

22 each such participant or beneficiary. 

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

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

25 application under this subsection shall be the amount (deVerDate Sep 11 2014 05:00 Nov 22, 2017 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S2147.IS S2147

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1 termined by the plan actuary and submitted on the appli2 cation) which, if such amount were paid by the corporation 

3 in combination with the loan and any other assistance 

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

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

6 insolvency. 

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

8 assistance under this subsection as if it were provided 

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

10 under subsection (b)(2) shall not require the financial as11 sistance to be repaid before the date on which the loan 

12 under section 4(a) of the Butch Lewis Act of 2017 is re13 paid in full. 

14 ‘‘(5) The corporation may forgo repayment of the fi15 nancial assistance provided under this subsection if nec16 essary to avoid any suspension of the accrued benefits of 

17 participants.’’. 

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

19 Director of the Pension Benefit Guaranty Corporation 

20 such sums as may be necessary for each fiscal year to pro21 vide the financial assistance described in section 4261(d) 

22 of the Employee Retirement Income Security Act of 1974 

23 (29 U.S.C. 1431(d)) (as added by this section) (including 


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1 necessary administrative and operating expenses relating 

2 to such assistance). 

Æ 


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