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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2254 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                S. 2254

    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

                             July 24, 2019

 Mr. Brown (for himself, Ms. Baldwin, Mr. Blumenthal, Mr. Booker, Mr. 
Casey, Ms. Duckworth, Mr. Durbin, Ms. Harris, Ms. Hassan, Mr. Heinrich, 
   Ms. Hirono, Mr. Jones, Mr. Kaine, Ms. Klobuchar, Mr. Manchin, Mr. 
 Markey, Mr. Merkley, Mr. Peters, Ms. Rosen, Mr. Sanders, Mr. Schumer, 
Mrs. Shaheen, Ms. Smith, Ms. Stabenow, Mr. Van Hollen, Ms. Warren, and 
Mr. Whitehouse) 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Butch Lewis Act of 2019''.

SEC. 2. PENSION REHABILITATION ADMINISTRATION; ESTABLISHMENT; POWERS.

    (a) Establishment.--There is established in the Department of the 
Treasury an agency to be known as the ``Pension Rehabilitation 
Administration''.
    (b) Director.--
            (1) Establishment of position.--There shall be at the head 
        of the Pension Rehabilitation Administration a Director, who 
        shall be appointed by the President.
            (2) Term.--
                    (A) In general.--The term of office of the Director 
                shall be 5 years.
                    (B) Service until appointment of successor.--An 
                individual serving as Director at the expiration of a 
                term may continue to serve until a successor is 
                appointed.
            (3) Powers.--
                    (A) Appointment of deputy directors, officers, and 
                employees.--The Director may appoint Deputy Directors, 
                officers, and employees, including attorneys, in 
                accordance with chapter 51 and subchapter III of 
                chapter 53 of title 5, United States Code.
                    (B) Contracting.--
                            (i) In general.--The Director may contract 
                        for financial and administrative services 
                        (including those related to budget and 
                        accounting, financial reporting, personnel, and 
                        procurement) with the General Services 
                        Administration, or such other Federal agency as 
                        the Director determines appropriate, for which 
                        payment shall be made in advance, or by 
                        reimbursement, from funds of the Pension 
                        Rehabilitation Administration in such amounts 
                        as may be agreed upon by the Director and the 
                        head of the Federal agency providing the 
                        services.
                            (ii) Subject to appropriations.--Contract 
                        authority under clause (i) shall be effective 
                        for any fiscal year only to the extent that 
                        appropriations are available for that purpose.
    (c) Transfer of Funds.--The Secretary of the Treasury may transfer 
for any fiscal year, from unobligated amounts appropriated to the 
Department of the Treasury, to the Pension Rehabilitation 
Administration such sums as may be reasonably necessary for the 
administrative and operating expenses of the Pension Rehabilitation 
Administration.

SEC. 3. PENSION REHABILITATION TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. PENSION REHABILITATION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Pension 
Rehabilitation Trust Fund' (hereafter in this section referred to as 
the `Fund'), consisting of such amounts as may be appropriated or 
credited to the Fund as provided in this section and section 9602(b).
    ``(b) Transfers to Fund.--
            ``(1) Amounts attributable to treasury bonds.--There shall 
        be credited to the Fund the amounts transferred under section 6 
        of the Butch Lewis Act of 2019.
            ``(2) Loan interest and principal.--
                    ``(A) In general.--The Director of the Pension 
                Rehabilitation Administration established under section 
                2 of the Butch Lewis Act of 2019 shall deposit in the 
                Fund any amounts received from a plan as payment of 
                interest or principal on a loan under section 4 of such 
                Act.
                    ``(B) Interest.--For purposes of subparagraph (A), 
                the term `interest' includes points and other similar 
                amounts.
            ``(3) Transfers from secretary.--The Director of the 
        Pension Rehabilitation Administration shall deposit in the Fund 
        any amounts received from the Secretary under section 2(c) of 
        such Act.
            ``(4) Availability of funds.--Amounts credited to or 
        deposited in the Fund shall remain available until expended.
    ``(c) Expenditures From Fund.--Amounts in the Fund are available 
without further appropriation to the Pension Rehabilitation 
Administration--
            ``(1) for the purpose of making the loans described in 
        section 4 of the Butch Lewis Act of 2019,
            ``(2) for the payment of principal and interest on 
        obligations issued under section 6 of such Act, and
            ``(3) for administrative and operating expenses of such 
        Administration.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Pension Rehabilitation Trust Fund.''.

SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED BENEFIT PLANS.

    (a) Loan Authority.--
            (1) In general.--The Pension Rehabilitation Administration 
        established under section 2 is authorized--
                    (A) to make loans to multiemployer plans (as 
                defined in section 414(f) of the Internal Revenue Code 
                of 1986) which are defined benefit plans (as defined in 
                section 414(j) of such Code) and which--
                            (i) are in critical and declining status 
                        (within the meaning of section 432(b)(6) of 
                        such Code and section 305(b)(6) of such Act) as 
                        of the date of the enactment of this Act, or 
                        with respect to which a suspension of benefits 
                        has been approved under section 432(e)(9) of 
                        such Code and section 305(e)(9) of such Act as 
                        of such date;
                            (ii) as of such date of enactment, are in 
                        critical status (within the meaning of section 
                        432(b)(2) of such Code and section 305(b)(2) of 
                        such Act), have a funded percentage of less 
                        than 40 percent (as determined for purposes of 
                        section 432 of such Code and section 305 of 
                        such Act), and have a ratio of active to 
                        inactive participants which is less than 2 to 
                        3; or
                            (iii) are insolvent for purposes of section 
                        418E of such Code as of such date of enactment, 
                        if they became insolvent after December 16, 
                        2014, and have not been terminated; and
                    (B) subject to subsection (b), to establish 
                appropriate terms for such loans.
            (2) Consultation.--The Director of the Pension 
        Rehabilitation Administration shall consult with the Secretary 
        of the Treasury, the Secretary of Labor, and the Director of 
        the Pension Benefit Guaranty Corporation before making any loan 
        under paragraph (1), and shall share with such persons the 
        application and plan information with respect to each such 
        loan.
            (3) Establishment of loan program.--
                    (A) In general.--A program to make the loans 
                authorized under this section shall be established not 
                later than September 30, 2019, with guidance regarding 
                such program to be promulgated by the Director of the 
                Pension Rehabilitation Administration, in consultation 
                with the Pension Benefit Guaranty Corporation and the 
                Department of Labor, not later than December 31, 2019.
                    (B) Loans authorized before program date.--Without 
                regard to whether the program under subparagraph (A) 
                has been established, a plan may apply for a loan under 
                this section before either date described in such 
                subparagraph, and the Pension Rehabilitation 
                Administration shall approve the application and make 
                the loan before establishment of the program if 
                necessary to avoid any suspension of the accrued 
                benefits of participants.
    (b) Loan Terms.--
            (1) In general.--The terms of any loan made under 
        subsection (a) shall state that--
                    (A) the plan shall make payments of interest on the 
                loan for a period of 29 years beginning on the date of 
                the loan (or 19 years in the case of a plan making the 
                election under subsection (c)(5));
                    (B) final payment of interest and principal shall 
                be due in the 30th year after the date of the loan 
                (except as provided in an election under subsection 
                (c)(5)); and
                    (C) as a condition of the loan, the plan sponsor 
                stipulates that--
                            (i) except as provided in clause (ii), the 
                        plan will not increase benefits, allow any 
                        employer participating in the plan to reduce 
                        its contributions, or accept any collective 
                        bargaining agreement which provides for reduced 
                        contribution rates, during the 30-year period 
                        described in subparagraphs (A) and (B);
                            (ii) in the case of a plan with respect to 
                        which a suspension of benefits has been 
                        approved under section 432(e)(9) of the 
                        Internal Revenue Code of 1986 and section 
                        305(e)(9) of the Employee Retirement Income 
                        Security Act of 1974, or under section 418E of 
                        such Code, before the loan, the plan will 
                        reinstate the suspended benefits (or will not 
                        carry out any suspension which has been 
                        approved but not yet implemented);
                            (iii) the plan sponsor will comply with the 
                        requirements of section 6059A of the Internal 
                        Revenue Code of 1986;
                            (iv) the plan will continue to pay all 
                        premiums due under section 4007 of the Employee 
                        Retirement Income Security Act of 1974; and
                            (v) the plan and plan administrator will 
                        meet such other requirements as the Director of 
                        the Pension Rehabilitation Administration 
                        provides in the loan terms.
                The terms of the loan shall not make reference to 
                whether the plan is receiving financial assistance 
                under section 4261(d) of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1431(d)) or to any 
                adjustment of the loan amount under subsection 
                (d)(2)(A)(ii).
            (2) Interest rate.--Except as provided in the second 
        sentence of this paragraph and subsection (c)(5), loans made 
        under subsection (a) shall have as low an interest rate as is 
        feasible. Such rate shall be determined by the Pension 
        Rehabilitation Administration and shall--
                    (A) not be lower than the rate of interest on 30-
                year Treasury securities on the first day of the 
                calendar year in which the loan is issued; and
                    (B) not exceed the greater of--
                            (i) a rate .2 percent higher than such rate 
                        of interest on such date; or
                            (ii) the rate necessary to collect revenues 
                        sufficient to administer the program under this 
                        section.
    (c) Loan Application.--
            (1) In general.--In applying for a loan under subsection 
        (a), the plan sponsor shall--
                    (A) demonstrate that, except as provided in 
                subparagraph (C)--
                            (i) the loan will enable the plan to avoid 
                        insolvency for at least the 30-year period 
                        described in subparagraphs (A) and (B) of 
                        subsection (b)(1) or, in the case of a plan 
                        which is already insolvent, to emerge from 
                        insolvency within and avoid insolvency for the 
                        remainder of such period; and
                            (ii) the plan is reasonably expected to be 
                        able to pay benefits and the interest on the 
                        loan during such period and to accumulate 
                        sufficient funds to repay the principal when 
                        due;
                    (B) provide the plan's most recently filed Form 
                5500 as of the date of application and any other 
                information necessary to determine the loan amount 
                under subsection (d);
                    (C) stipulate whether the plan is also applying for 
                financial assistance under section 4261(d) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1431(d)) in combination with the loan to enable 
                the plan to avoid insolvency and to pay benefits, or is 
                already receiving such financial assistance as a result 
                of a previous application;
                    (D) state in what manner the loan proceeds will be 
                invested pursuant to subsection (d), the person from 
                whom any annuity contracts under such subsection will 
                be purchased, and the person who will be the investment 
                manager for any portfolio implemented under such 
                subsection; and
                    (E) include such other information and 
                certifications as the Director of the Pension 
                Rehabilitation Administration shall require.
            (2) Standard for accepting actuarial and plan sponsor 
        determinations and demonstrations in the application.--In 
        evaluating the plan sponsor's application, the Director of the 
        Pension Rehabilitation Administration shall accept the 
        determinations and demonstrations in the application unless the 
        Director, in consultation with the Director of the Pension 
        Benefit Guaranty Corporation and the Secretary of Labor, 
        concludes that the determinations and demonstrations in the 
        application are unreasonable or are inconsistent with any rules 
        issued by the Director pursuant to subsection (g).
            (3) Required actions; deemed approval.--The Director of the 
        Pension Rehabilitation Administration shall approve or deny any 
        application under this subsection within 90 days after the 
        submission of such application. An application shall be deemed 
        approved unless, within such 90 days, the Director notifies the 
        plan sponsor of the denial of such application and the reasons 
        for such denial. Any approval or denial of an application by 
        the Director of the Pension Rehabilitation Administration shall 
        be treated as a final agency action for purposes of section 704 
        of title 5, United States Code. The Pension Rehabilitation 
        Administration shall make the loan pursuant to any application 
        promptly after the approval of such application.
            (4) Certain plans required to apply.--The plan sponsor of 
        any plan with respect to which a suspension of benefits has 
        been approved under section 432(e)(9) of the Internal Revenue 
        Code of 1986 and section 305(e)(9) of the Employee Retirement 
        Income Security Act of 1974 or under section 418E of such Code, 
        before the date of the enactment of this Act shall apply for a 
        loan under this section. The Director of the Pension 
        Rehabilitation Administration shall provide for such plan 
        sponsors to use the simplified application under subsection 
        (d)(2)(B).
            (5) Incentive for early repayment.--The plan sponsor may 
        elect at the time of the application to repay the loan 
        principal, along with the remaining interest, over the 10-year 
        period beginning with the 21st year after the date of the loan. 
        In the case of a plan making this election, the interest on the 
        loan shall be reduced by 0.5 percent.
    (d) Loan Amount and Use.--
            (1) Amount of loan.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C) and paragraph (2), the amount 
                of any loan under subsection (a) shall be, as 
                demonstrated by the plan sponsor on the application 
                under subsection (c), the amount needed to purchase 
                annuity contracts or to implement a portfolio described 
                in paragraph (3)(C) (or a combination of the two) 
                sufficient to provide benefits of participants and 
                beneficiaries of the plan in pay status, and terminated 
                vested benefits, at the time the loan is made.
                    (B) Limitation based on ability to repay.--If at 
                the time of the application under subsection (c) the 
                plan sponsor determines that, based on a repayment 
                schedule that would provide for repayment of the full 
                amount determined under subparagraph (A) or (C)(ii) 
                within the 30-year period described in subsection 
                (b)(1), making payments would cause the plan to be 
                within 18 months of becoming insolvent at any point 
                during such period, the loan amount shall be such 
                lesser amount as the plan sponsor determines the plan 
                will be able to repay without becoming within 18 months 
                of insolvency.
                    (C) Plans with suspended benefits.--In the case of 
                a plan with respect to which a suspended benefits has 
                been approved under section 432(e)(9) of the Internal 
                Revenue Code of 1986 and section 305(e)(9) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1085(e)(9)) or under section 418E of such Code--
                            (i) the suspension of benefits shall not be 
                        taken into account in applying subparagraph 
                        (A); and
                            (ii) except as provided in subparagraph 
                        (B), the loan amount shall be the amount 
                        sufficient to provide benefits of participants 
                        and beneficiaries of the plan in pay status and 
                        terminated vested benefits at the time the loan 
                        is made, determined without regard to the 
                        suspension, including retroactive payment of 
                        benefits which would otherwise have been 
                        payable during the period of the suspension.
            (2) Coordination with pbgc financial assistance.--
                    (A) In general.--In the case of a plan which is 
                also applying for financial assistance under section 
                4261(d) of the Employee Retirement Income Security Act 
                of 1974 (29 U.S.C. 1431(d))--
                            (i) the plan sponsor shall submit the loan 
                        application and the application for financial 
                        assistance jointly to the Pension 
                        Rehabilitation Administration and the Pension 
                        Benefit Guaranty Corporation with the 
                        information necessary to determine the 
                        eligibility for and amount of the loan under 
                        this section and the financial assistance under 
                        section 4261(d) of such Act; and
                            (ii) if such financial assistance is 
                        granted, the amount of the loan under 
                        subsection (a) shall not exceed an amount equal 
                        to the excess of--
                                    (I) the amount determined under 
                                paragraph (1)(A) or (1)(C)(ii) 
                                (whichever is applicable), without 
                                regard to paragraph (1)(B); over
                                    (II) the amount of such financial 
                                assistance.
                    (B) Plans already receiving pbgc assistance.--The 
                Director of the Pension Rehabilitation Administration 
                shall provide for a simplified application for the loan 
                under this section which may be used by an insolvent 
                plan which has not been terminated and which is already 
                receiving financial assistance (other than under 
                section 4261(d) of such Act) from the Pension Benefit 
                Guaranty Corporation at the time of the application for 
                the loan under this section.
            (3) Use of loan funds.--
                    (A) In general.--The loan received under subsection 
                (a) shall be used to purchase annuity contracts which 
                meet the requirements of subparagraph (B) or to 
                implement a portfolio described in subparagraph (C) (or 
                a combination of the two) to provide the benefits 
                described in paragraph (1).
                    (B) Annuity contract requirements.--The annuity 
                contracts purchased under subparagraph (A) shall be 
                issued by an insurance company which is licensed to do 
                business under the laws of any State and which is rated 
                A or better by a nationally recognized statistical 
                rating organization, and the purchase of such contracts 
                shall meet all applicable fiduciary standards under the 
                Employee Retirement Income Security Act of 1974.
                    (C) Portfolio.--
                            (i) In general.--A portfolio described in 
                        this subparagraph is--
                                    (I) a cash matching portfolio or 
                                duration matching portfolio consisting 
                                of investment grade (as rated by a 
                                nationally recognized statistical 
                                rating organization) fixed income 
                                investments, including United States 
                                dollar-denominated public or private 
                                debt obligations issued or guaranteed 
                                by the United States or a foreign 
                                issuer, which are tradeable in United 
                                States currency and are issued at fixed 
                                or zero coupon rates; or
                                    (II) any other portfolio prescribed 
                                by the Secretary of the Treasury in 
                                regulations which has a similar risk 
                                profile to the portfolios described in 
                                subclause (I) and is equally protective 
                                of the interests of participants and 
                                beneficiaries.
                        Once implemented, such a portfolio shall be 
                        maintained until all liabilities to 
                        participants and beneficiaries in pay status at 
                        the time of the loan are satisfied.
                            (ii) Fiduciary duty.--Any investment 
                        manager of a portfolio under this subparagraph 
                        shall acknowledge in writing that such person 
                        is a fiduciary under the Employee Retirement 
                        Income Security Act of 1974 with respect to the 
                        plan.
                            (iii) Treatment of participants and 
                        beneficiaries.--Participants and beneficiaries 
                        covered by a portfolio under this subparagraph 
                        shall continue to be treated as participants 
                        and beneficiaries of the plan, including for 
                        purposes of title IV of the Employee Retirement 
                        Income Security Act of 1974.
                    (D) Accounting.--
                            (i) In general.--Annuity contracts 
                        purchased and portfolios implemented under this 
                        paragraph shall be used solely to provide the 
                        benefits described in paragraph (1) until all 
                        such benefits have been paid and shall be 
                        accounted for separately from the other assets 
                        of the plan.
                            (ii) Oversight of non-annuity 
                        investments.--
                                    (I) In general.--Any portfolio 
                                implemented under this paragraph shall 
                                be subject to oversight by the Pension 
                                Rehabilitation Administration, 
                                including a mandatory triennial review 
                                of the adequacy of the portfolio to 
                                provide the benefits described in 
                                paragraph (1) and approval (to be 
                                provided within a reasonable period of 
                                time) of any decision by the plan 
                                sponsor to change the investment 
                                manager of the portfolio.
                                    (II) Remedial action.--If the 
                                triennial review under subclause (I) 
                                determines an inadequacy, the plan 
                                sponsor shall take remedial action to 
                                ensure that the inadequacy will be 
                                cured within 5 years of the review.
                    (E) Ombudsperson.--The Participant and Plan Sponsor 
                Advocate established under section 4004 of the Employee 
                Retirement Income Security Act of 1974 shall act as 
                ombudsperson for participants and beneficiaries on 
                behalf of whom annuity contracts are purchased or who 
                are covered by a portfolio under this paragraph.
    (e) Collection of Repayment.--Except as provided in subsection (f), 
the Pension Rehabilitation Administration shall make every effort to 
collect repayment of loans under this section in accordance with 
section 3711 of title 31, United States Code.
    (f) Loan Default.--If a plan is unable to make any payment on a 
loan under this section when due, the Pension Rehabilitation 
Administration shall negotiate with the plan sponsor revised terms for 
repayment (including installment payments over a reasonable period or 
forgiveness of a portion of the loan principal), but only to the extent 
necessary to avoid insolvency in the subsequent 18 months.
    (g) Authority To Issue Rules, etc.--The Director of the Pension 
Rehabilitation Administration, in consultation with the Pension Benefit 
Guaranty Corporation and the Department of Labor, is authorized to 
issue rules regarding the form, content, and process of applications 
for loans under this section, actuarial standards and assumptions to be 
used in making estimates and projections for purposes of such 
applications, and assumptions regarding interest rates, mortality, and 
distributions with respect to a portfolio described in subsection 
(d)(3)(C).
    (h) Coordination With Taxation of Unrelated Business Income.--
Subparagraph (A) of section 514(c)(6) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii)(II) 
        and inserting ``, or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) indebtedness with respect to a 
                        multiemployer plan under a loan made by the 
                        Pension Rehabilitation Administration pursuant 
                        to section 4 of the Butch Lewis Act of 2019.''.

SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND FUNDING RULES.

    (a) Amendment to Internal Revenue Code of 1986.--Section 432 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Butch Lewis Act of 2019 withdraws 
                from the plan before the end of the 30-year period 
                beginning on the date of the loan, the withdrawal 
                liability of such employer shall be determined under 
                the Employee Retirement Income Security Act of 1974--
                            ``(i) by applying section 4219(c)(1)(D) of 
                        the Employee Retirement Income Security Act of 
                        1974 as if the plan were terminating by the 
                        withdrawal of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044 of the Employee Retirement Income 
                        Security Act of 1974, as prescribed in the 
                        regulations under section 4281 of the Employee 
                        Retirement Income Security Act of 1974 in the 
                        case of such a mass withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Butch Lewis Act of 2019 shall not be taken into account 
                in determining the withdrawal liability of any employer 
                under subparagraph (A), but the amount equal to the 
                greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be so taken into account.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the Butch 
        Lewis Act of 2019--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 412,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 305 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085) is amended by adding at the end the following new 
subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Butch Lewis Act of 2019 withdraws 
                from the plan before the end of the 30-year period 
                beginning on the date of the loan, the withdrawal 
                liability of such employer shall be determined--
                            ``(i) by applying section 4219(c)(1)(D) as 
                        if the plan were terminating by the withdrawal 
                        of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044, as prescribed in the regulations 
                        under section 4281 in the case of such a mass 
                        withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Butch Lewis Act of 2019 shall not be taken into account 
                in determining the withdrawal liability of any employer 
                under subparagraph (A), but the amount equal to the 
                greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be so taken into account.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the Butch 
        Lewis Act of 2019--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 302,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.

SEC. 6. ISSUANCE OF TREASURY BONDS.

    The Secretary of the Treasury (in consultation with the Director of 
the Pension Rehabilitation Administration established under section 2) 
shall from time to time transfer from the general fund of the Treasury 
to the Pension Rehabilitation Trust Fund established under section 9512 
of the Internal Revenue Code of 1986 such amounts as are necessary to 
fund the loan program under section 4 of this Act, including from 
proceeds from the Secretary's issuance of obligations under chapter 31 
of title 31, United States Code.

SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    (a) In General.--Subpart E of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    ``(a) In General.--In the case of a plan receiving a loan under 
section 4(a) of the Butch Lewis Act of 2019, with respect to the first 
plan year beginning after the date of the loan and each of the 29 
succeeding plan years, not later than the 90th day of each such plan 
year the plan sponsor shall file with the Secretary a report (including 
appropriate documentation and actuarial certifications from the plan 
actuary, as required by the Secretary) that contains--
            ``(1) the funded percentage (as defined in section 
        432(i)(2)) as of the first day of such plan year, and the 
        underlying actuarial value of assets (determined with regard, 
        and without regard, to annuity contracts purchased and 
        portfolios implemented with proceeds of such loan) and 
        liabilities (including any amounts due with respect to such 
        loan) taken into account in determining such percentage,
            ``(2) the market value of the assets of the plan 
        (determined as provided in paragraph (1)) as of the last day of 
        the plan year preceding such plan year,
            ``(3) the total value of all contributions made by 
        employers and employees during the plan year preceding such 
        plan year,
            ``(4) the total value of all benefits paid during the plan 
        year preceding such plan year,
            ``(5) cash flow projections for such plan year and the 9 
        succeeding plan years, and the assumptions used in making such 
        projections,
            ``(6) funding standard account projections for such plan 
        year and the 9 succeeding plan years, and the assumptions 
        relied upon in making such projections,
            ``(7) the total value of all investment gains or losses 
        during the plan year preceding such plan year,
            ``(8) any significant reduction in the number of active 
        participants during the plan year preceding such plan year, and 
        the reason for such reduction,
            ``(9) a list of employers that withdrew from the plan in 
        the plan year preceding such plan year, and the resulting 
        reduction in contributions,
            ``(10) a list of employers that paid withdrawal liability 
        to the plan during the plan year preceding such plan year and, 
        for each employer, a total assessment of the withdrawal 
        liability paid, the annual payment amount, and the number of 
        years remaining in the payment schedule with respect to such 
        withdrawal liability,
            ``(11) any material changes to benefits, accrual rates, or 
        contribution rates during the plan year preceding such plan 
        year, and whether such changes relate to the terms of the loan,
            ``(12) details regarding any funding improvement plan or 
        rehabilitation plan and updates to such plan,
            ``(13) the number of participants and beneficiaries during 
        the plan year preceding such plan year who are active 
        participants, the number of participants and beneficiaries in 
        pay status, and the number of terminated vested participants 
        and beneficiaries,
            ``(14) the amount of any financial assistance received 
        under section 4261 of the Employee Retirement Income Security 
        Act of 1974 to pay benefits during the preceding plan year, and 
        the total amount of such financial assistance received for all 
        preceding years,
            ``(15) the information contained on the most recent annual 
        funding notice submitted by the plan under section 101(f) of 
        the Employee Retirement Income Security Act of 1974,
            ``(16) the information contained on the most recent annual 
        return under section 6058 and actuarial report under section 
        6059 of the plan, and
            ``(17) copies of the plan document and amendments, other 
        retirement benefit or ancillary benefit plans relating to the 
        plan and contribution obligations under such plans, a breakdown 
        of administrative expenses of the plan, participant census data 
        and distribution of benefits, the most recent actuarial 
        valuation report as of the plan year, copies of collective 
        bargaining agreements, and financial reports, and such other 
        information as the Secretary, in consultation with the Director 
        of the Pension Rehabilitation Administration, may require.
    ``(b) Electronic Submission.--The report required under subsection 
(a) shall be submitted electronically.
    ``(c) Information Sharing.--The Secretary shall share the 
information in the report under subsection (a) with the Secretary of 
Labor and the Director of the Pension Benefit Guaranty Corporation.
    ``(d) Report to Participants, Beneficiaries, and Employers.--Each 
plan sponsor required to file a report under subsection (a) shall, 
before the expiration of the time prescribed for the filing of such 
report, also provide a summary (written in a manner so as to be 
understood by the average plan participant) of the information in such 
report to participants and beneficiaries in the plan and to each 
employer with an obligation to contribute to the plan.''.
    (b) Penalty.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``, 6059A (relating to reports of plans 
        receiving pension rehabilitation loans)'' after ``deferred 
        compensation)'';
            (2) by inserting ``($100 in the case of failures under 
        section 6059A)'' after ``$25''; and
            (3) by adding at the end the following: ``In the case of a 
        failure with respect to section 6059A, the amount imposed under 
        this subsection shall not be paid from the assets of the 
        plan.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
part III of subchapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 6059A. Reports of plans receiving pension rehabilitation 
                            loans.''.

SEC. 8. PBGC FINANCIAL ASSISTANCE.

    (a) In General.--Section 4261 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431) is amended by adding at the end 
the following new subsection:
    ``(d)(1) The plan sponsor of a multiemployer plan--
            ``(A) which is in critical and declining status (within the 
        meaning of section 305(b)(6)) as of the date of the enactment 
        of this subsection, or with respect to which a suspension of 
        benefits has been approved under section 305(e)(9) as of such 
        date;
            ``(B) which, as of such date of enactment, is in critical 
        status (within the meaning of section 305(b)(2)), has a funded 
        percentage of less than 40 percent (as determined for purposes 
        of section 305), and has a ratio of active to inactive 
        participants which is less than 2 to 3; or
            ``(C) which is insolvent for purposes of section 418E of 
        the Internal Revenue Code of 1986 as of such date of enactment, 
        if the plan became insolvent after December 16, 2014, and has 
        not been terminated,
and which is applying for a loan under section 4(a) of the Butch Lewis 
Act of 2019 may also apply to the corporation for financial assistance 
under this subsection, by jointly submitting such applications in 
accordance with section 4(d)(2) of such Act. The application for 
financial assistance under this subsection shall demonstrate, based on 
projections by the plan actuary, that after the receipt of the 
anticipated loan amount under section 4(a) of such Act, the plan will 
still become (or remain) insolvent within the 30-year period beginning 
on the date of the loan.
    ``(2) In reviewing an application under paragraph (1), the 
corporation shall review the demonstrations and assumptions submitted 
with the loan application under section 4(c) of the Butch Lewis Act of 
2019 and provide guidance regarding such assumptions prior to approving 
any application for financial assistance under this subsection. The 
corporation may deny any application if the assumptions and 
determinations are unreasonable, or inconsistent with rules issued by 
the corporation, and the plan and the corporation are unable to reach 
agreement on such assumptions and determinations.
    ``(3) In the case of a plan described in paragraph (1)(A) or 
(1)(B), the financial assistance provided pursuant to such application 
under this subsection shall be the amount (determined by the plan 
actuary and submitted on the application) equal to the sum of--
            ``(A) the percentage of benefits of participants and 
        beneficiaries of the plan in pay status at the time of the 
        application; and
            ``(B) the percentage of future benefits to which 
        participants who have separated from service but are not yet in 
        pay status are entitled,
which, if such percentage were paid by the corporation in combination 
with the loan, would allow the plan to avoid projected insolvency. Such 
amount shall not exceed the maximum guaranteed benefit with respect to 
all participants and beneficiaries of the plan under sections 4022A and 
4022B. For this purpose, the maximum guaranteed benefit amount shall be 
determined by disregarding any loan available from the Pension 
Rehabilitation Administration and shall be determined as if the plan 
were insolvent on the date of the application. Further, the present 
value of the maximum guaranteed benefit amount with respect to such 
participants and beneficiaries may be calculated in the aggregate, 
rather than by reference to the benefit of each such participant or 
beneficiary.
    ``(4) In the case of a plan described in paragraph (1)(C), the 
financial assistance provided pursuant to such application under this 
subsection shall be the amount (determined by the plan actuary and 
submitted on the application) which, if such amount were paid by the 
corporation in combination with the loan and any other assistance being 
provided to the plan by the corporation at the time of the application, 
would enable the plan to emerge from the projected insolvency.
    ``(5)(A) Except as provided in subparagraph (B), the corporation 
shall provide the financial assistance under this subsection only in 
such amounts as the corporation determines, at the time of approval and 
at the beginning of each plan year beginning thereafter during the 
period of assistance, are necessary for the plan to avoid insolvency 
during the 5 plan year period beginning with the current plan year.
    ``(B) In the case of a plan described in paragraph (1)(C), the 
financial assistance under this subsection shall be provided in a lump 
sum if deemed necessary by the corporation, and in no case later than 
December 31, 2020.
    ``(6) Subsections (b) and (c) shall apply to financial assistance 
under this subsection as if it were provided under subsection (a), 
except that the terms for repayment under subsection (b)(2) shall not 
require the financial assistance to be repaid before the date on which 
the loan under section 4(a) of the Butch Lewis Act of 2019 is repaid in 
full.
    ``(7) The corporation may forgo repayment of the financial 
assistance provided under this subsection if necessary to avoid any 
suspension of the accrued benefits of participants.''.
    (b) Appropriations.--There is appropriated to the Director of the 
Pension Benefit Guaranty Corporation such sums as may be necessary for 
each fiscal year to provide the financial assistance described in 
section 4261(d) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1431(d)) (as added by this section) (including necessary 
administrative and operating expenses relating to such assistance).
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