I 

116TH CONGRESS 

1ST SESSION H. R. 1916 

To amend the Internal Revenue Code of 1986 and the Employee Retirement 

Income Security Act of 1974 to provide alternative minimum funding 

rules for certain single-employer plans maintained by a community newspaper. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2019 

Ms. DELBENE (for herself, Mrs. RODGERS of Washington, Mr. SMITH of 

Washington, and Mr. NEWHOUSE) introduced the following bill; which 

was referred to the Committee on Education and Labor, and in addition 

to the Committee on Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to provide alternative minimum funding rules for certain single-employer plans maintained by a community newspaper. 

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 ‘‘Save Community 

5 Newspaper Act of 2019’’. 


pbinns on DSK79D2C42PROD with BILLS
2 

•HR 1916 IH

1 SEC. 2. SPECIAL RULES FOR MINIMUM FUNDING STAND2 ARDS FOR COMMUNITY NEWSPAPER PLANS. 

3 (a) AMENDMENT TO INTERNAL REVENUE CODE OF

4 1986.—Section 430 of the Internal Revenue Code of 1986 

5 is amended by adding at the end the following new sub6 section: 

7 ‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER

8 PLANS.— 

9 ‘‘(1) IN GENERAL.—The plan sponsor of a com10 munity newspaper plan under which no participant 

11 has had the participant’s accrued benefit increased 

12 (whether because of service or compensation) after 

13 December 31, 2017, may elect to have the alter14 native standards described in paragraph (3) apply to 

15 such plan, and any plan sponsored by any member 

16 of the same controlled group, for purposes of this 

17 section for plan years beginning with any plan year 

18 in effect on or beginning after the date of the enact19 ment of this subsection. 

20 ‘‘(2) ELECTION.—An election under paragraph 

21 (1) shall be made at such time and in such manner 

22 as prescribed by the Secretary. Such election, once 

23 made with respect to a plan year, shall apply to all 

24 subsequent plan years unless revoked with the con25 sent of the Secretary. 


pbinns on DSK79D2C42PROD with BILLS
3 

•HR 1916 IH

1 ‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND2 ARDS.—The alternative standards described in this 

3 paragraph are the following: 

4 ‘‘(A) INTEREST RATES.— 

5 ‘‘(i) IN GENERAL.—Notwithstanding 

6 subsection (h)(2)(C) and except as pro7 vided in clause (ii), the first, second, and 

8 third segment rates in effect for any 

9 month for purposes of this section shall be 

10 8 percent. 

11 ‘‘(ii) NEW BENEFIT ACCRUALS.—Not12 withstanding subsection (h)(2), for pur13 poses of determining the funding target 

14 and normal cost of a plan for any plan 

15 year, the present value of any benefits ac16 crued or earned under the plan for a plan 

17 year with respect to which an election 

18 under paragraph (1) is in effect shall be 

19 determined on the basis of the U.S. Treas20 ury obligation yield curve for the day that 

21 is the valuation date of such plan for such 

22 plan year. 

23 ‘‘(iii) U.S. TREASURY OBLIGATION

24 YIELD CURVE.—For purposes of this sub25 section, the term ‘U.S. Treasury obligation 


pbinns on DSK79D2C42PROD with BILLS
4 

•HR 1916 IH

1 yield curve’ means, with respect to any 

2 day, a yield curve which shall be prescribed 

3 by the Secretary for such day on interest4 bearing obligations of the United States. 

5 ‘‘(B) SHORTFALL AMORTIZATION BASE.— 

6 ‘‘(i) PREVIOUS SHORTFALL AMORTIZA7 TION BASES.—The shortfall amortization 

8 bases determined under subsection (c)(3) 

9 for all plan years preceding the first plan 

10 year to which the election under paragraph 

11 (1) applies (and all shortfall amortization 

12 installments determined with respect to 

13 such bases) shall be reduced to zero under 

14 rules similar to the rules of subsection 

15 (c)(6). 

16 ‘‘(ii) NEW SHORTFALL AMORTIZATION

17 BASE.—Notwithstanding subsection (c)(3), 

18 the shortfall amortization base for the first 

19 plan year to which the election under para20 graph (1) applies shall be the funding 

21 shortfall of such plan for such plan year 

22 (determined using the interest rates as 

23 modified under subparagraph (A)). 

24 ‘‘(C) DETERMINATION OF SHORTFALL AM25 ORTIZATION INSTALLMENTS.— 


pbinns on DSK79D2C42PROD with BILLS
5 

•HR 1916 IH

1 ‘‘(i) 30-YEAR PERIOD.—Subpara2 graphs (A) and (B) of subsection (c)(2) 

3 shall be applied by substituting ‘30-plan4 year’ for ‘7-plan-year’ each place it ap5 pears. 

6 ‘‘(ii) NO SPECIAL ELECTION.—The 

7 election under subparagraph (D) of sub8 section (c)(2) shall not apply to any plan 

9 year to which the election under paragraph 

10 (1) applies. 

11 ‘‘(D) EXEMPTION FROM AT-RISK TREAT12 MENT.—Subsection (i) shall not apply. 

13 ‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur14 poses of this subsection: 

15 ‘‘(A) IN GENERAL.—The term ‘community 

16 newspaper plan’ means a plan to which this sec17 tion applies maintained by an employer which, 

18 as of December 31, 2017— 

19 ‘‘(i) publishes and distributes, either 

20 electronically or in printed form, 1 or more 

21 newspapers, 

22 ‘‘(ii) is not a company the stock of 

23 which is publicly traded (on a stock ex24 change or in an over-the-counter market), 


pbinns on DSK79D2C42PROD with BILLS
6 

•HR 1916 IH

1 and is not controlled, directly or indirectly, 

2 by such a company, and 

3 ‘‘(iii) is controlled, directly or indi4 rectly— 

5 ‘‘(I) by 1 or more persons resid6 ing primarily in a State in which the 

7 newspaper is published or distributed, 

8 ‘‘(II) by a trust or trusts, 1 or 

9 more of which was created or orga10 nized in a State in which the news11 paper is published or distributed, or 

12 ‘‘(III) by a combination of per13 sons described in subclauses (I) and 

14 (II). 

15 ‘‘(B) CONTROL.—A person shall be treated 

16 as controlled by another person if such other 

17 person possesses, directly or indirectly, the 

18 power to direct or cause the direction and man19 agement of such person (including the power to 

20 elect a majority of the members of the board of 

21 directors of such person) through the ownership 

22 of voting securities. 

23 ‘‘(5) CONTROLLED GROUP.—For purposes of 

24 this subsection, the term ‘controlled group’ means all 

25 persons treated as a single employer under subVerDate Sep 11 2014 23:01 Apr 10, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

pbinns on DSK79D2C42PROD with BILLS
7 

•HR 1916 IH

1 section (b), (c), (m), or (o) of section 414 as of the 

2 date of the enactment of this subsection.’’. 

3 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN4 COME SECURITY ACT OF 1974.—Section 303 of the Em5 ployee Retirement Income Security Act of 1974 (29 

6 U.S.C. 1083) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER

9 PLANS.— 

10 ‘‘(1) IN GENERAL.—The plan sponsor of a com11 munity newspaper plan under which no participant 

12 has had the participant’s accrued benefit increased 

13 (whether because of service or compensation) after 

14 December 31, 2017, may elect to have the alter15 native standards described in paragraph (3) apply to 

16 such plan, and any plan sponsored by any member 

17 of the same controlled group, for purposes of this 

18 section for plan years beginning with any plan year 

19 in effect on or beginning after the date of the enact20 ment of this subsection. 

21 ‘‘(2) ELECTION.—An election under paragraph 

22 (1) shall be made at such time and in such manner 

23 as prescribed by the Secretary of the Treasury. Such 

24 election, once made with respect to a plan year, shall 


pbinns on DSK79D2C42PROD with BILLS
8 

•HR 1916 IH

1 apply to all subsequent plan years unless revoked 

2 with the consent of the Secretary of the Treasury. 

3 ‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND4 ARDS.—The alternative standards described in this 

5 paragraph are the following: 

6 ‘‘(A) INTEREST RATES.— 

7 ‘‘(i) IN GENERAL.—Notwithstanding 

8 subsection (h)(2)(C) and except as pro9 vided in clause (ii), the first, second, and 

10 third segment rates in effect for any 

11 month for purposes of this section shall be 

12 8 percent. 

13 ‘‘(ii) NEW BENEFIT ACCRUALS.—Not14 withstanding subsection (h)(2), for pur15 poses of determining the funding target 

16 and normal cost of a plan for any plan 

17 year, the present value of any benefits ac18 crued or earned under the plan for a plan 

19 year with respect to which an election 

20 under paragraph (1) is in effect shall be 

21 determined on the basis of the U.S. Treas22 ury obligation yield curve for the day that 

23 is the valuation date of such plan for such 

24 plan year. 


pbinns on DSK79D2C42PROD with BILLS
9 

•HR 1916 IH

1 ‘‘(iii) U.S. TREASURY OBLIGATION

2 YIELD CURVE.—For purposes of this sub3 section, the term ‘U.S. Treasury obligation 

4 yield curve’ means, with respect to any 

5 day, a yield curve which shall be prescribed 

6 by the Secretary of the Treasury for such 

7 day on interest-bearing obligations of the 

8 United States. 

9 ‘‘(B) SHORTFALL AMORTIZATION BASE.— 

10 ‘‘(i) PREVIOUS SHORTFALL AMORTIZA11 TION BASES.—The shortfall amortization 

12 bases determined under subsection (c)(3) 

13 for all plan years preceding the first plan 

14 year to which the election under paragraph 

15 (1) applies (and all shortfall amortization 

16 installments determined with respect to 

17 such bases) shall be reduced to zero under 

18 rules similar to the rules of subsection 

19 (c)(6). 

20 ‘‘(ii) NEW SHORTFALL AMORTIZATION

21 BASE.—Notwithstanding subsection (c)(3), 

22 the shortfall amortization base for the first 

23 plan year to which the election under para24 graph (1) applies shall be the funding 

25 shortfall of such plan for such plan year 


pbinns on DSK79D2C42PROD with BILLS
10 

•HR 1916 IH

1 (determined using the interest rates as 

2 modified under subparagraph (A)). 

3 ‘‘(C) DETERMINATION OF SHORTFALL AM4 ORTIZATION INSTALLMENTS.— 

5 ‘‘(i) 30-YEAR PERIOD.—Subpara6 graphs (A) and (B) of subsection (c)(2) 

7 shall be applied by substituting ‘30-plan8 year’ for ‘7-plan-year’ each place it ap9 pears. 

10 ‘‘(ii) NO SPECIAL ELECTION.—The 

11 election under subparagraph (D) of sub12 section (c)(2) shall not apply to any plan 

13 year to which the election under paragraph 

14 (1) applies. 

15 ‘‘(D) EXEMPTION FROM AT-RISK TREAT16 MENT.—Subsection (i) shall not apply. 

17 ‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur18 poses of this subsection: 

19 ‘‘(A) IN GENERAL.—The term ‘community 

20 newspaper plan’ means a plan to which this sec21 tion applies maintained by an employer which, 

22 as of December 31, 2017— 

23 ‘‘(i) publishes and distributes, either 

24 electronically or in printed form, 1 or more 

25 newspapers, 


pbinns on DSK79D2C42PROD with BILLS
11 

•HR 1916 IH

1 ‘‘(ii) is not a company the stock of 

2 which is publicly traded (on a stock ex3 change or in an over-the-counter market), 

4 and is not controlled, directly or indirectly, 

5 by such a company, and 

6 ‘‘(iii) is controlled, directly or indi7 rectly— 

8 ‘‘(I) by 1 or more persons resid9 ing primarily in a State in which the 

10 newspaper is published or distributed, 

11 ‘‘(II) by a trust or trusts, 1 or 

12 more of which was created or orga13 nized in a State in which the news14 paper is published or distributed, or 

15 ‘‘(III) by a combination of per16 sons described in subclauses (I) and 

17 (II). 

18 ‘‘(B) CONTROL.—A person shall be treated 

19 as controlled by another person if such other 

20 person possesses, directly or indirectly, the 

21 power to direct or cause the direction and man22 agement of such person (including the power to 

23 elect a majority of the members of the board of 

24 directors of such person) through the ownership 

25 of voting securities. 


pbinns on DSK79D2C42PROD with BILLS
12 

•HR 1916 IH

1 ‘‘(5) CONTROLLED GROUP.—For purposes of 

2 this subsection, the term ‘controlled group’ means all 

3 persons treated as a single employer under sub4 section (b), (c), (m), or (o) of section 414 of the In5 ternal Revenue Code of 1986 as of the date of the 

6 enactment of this subsection. 

7 ‘‘(6) EFFECT ON PREMIUM RATE CALCULA8 TION.—Notwithstanding any other provision of law 

9 or any regulation issued by the Pension Benefit 

10 Guaranty Corporation, in the case of a plan with re11 spect to which the election under paragraph (1) has 

12 been made, the additional premium under section 

13 4006(a)(3)(E) shall be determined as if such elec14 tion had not been made.’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to plan years ending after Decem17 ber 31, 2017. 

Æ 


pbinns on DSK79D2C42PROD with BILLS