Emergency Pension Plan Relief Act of 2021

To provide relief for multiemployer and single employer pension plans, and for other purposes. 1. Short title This Act may be cited as the Emergency Pension Plan Relief Act of 2021 I Relief for Multiemployer Pension Plans 101. Special partition relief (a) Appropriation Section 4005 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1305 (i) (1) An eighth fund shall be established for partition assistance to multiemployer pension plans, as provided under section 4233A, and to pay for necessary administrative and operating expenses relating to such assistance. (2) There is appropriated from the general fund such amounts as necessary for the costs of providing partition assistance under section 4233A and necessary administrative and operating expenses. The eighth fund established under this subsection shall be credited with such amounts from time to time as the Secretary of the Treasury determines appropriate, from the general fund of the Treasury, and such amounts shall remain available until expended. . (b) Special partition authority The Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 4233A. Special partition relief (a) Special partition authority (1) In general Upon the application of a plan sponsor of an eligible multiemployer plan for partition of the plan under this section, the corporation shall order a partition of the plan in accordance with this section. (2) Inapplicability of certain repayment obligation A plan receiving partition assistance pursuant to this section shall not be subject to repayment obligations under section 4261(b)(2). (b) Eligible plans (1) In general For purposes of this section, a multiemployer plan is an eligible multiemployer plan if— (A) the plan is in critical and declining status (within the meaning of section 305(b)(6)) in any plan year beginning in 2020 through 2024; (B) a suspension of benefits has been approved with respect to the plan under section 305(e)(9) as of the date of the enactment of this section; (C) in any plan year beginning in 2020 through 2024, the plan is certified by the plan actuary to be in critical status (within the meaning of section 305(b)(2)), has a modified funded percentage of less than 40 percent, and has a ratio of active to inactive participants which is less than 2 to 3; or (D) the plan is insolvent for purposes of section 418E (2) Modified funded percentage For purposes of paragraph (1)(C), the term modified funded percentage (c) Applications for special partition (1) Guidance The corporation shall issue guidance setting forth requirements for special partition applications under this section not later than 120 days after the date of the enactment of this section. In such guidance, the corporation shall— (A) limit the materials required for a special partition application to the minimum necessary to make a determination on the application; and (B) provide for an alternate application for special partition under this section, which may be used by a plan that has been approved for a partition under section 4233 before the date of enactment of this section. (2) Temporary priority consideration of applications (A) In general The corporation may specify in guidance under paragraph (1) that, during the first 2 years following the date of enactment of this section, special partition applications will be provided priority consideration, if— (i) the plan is likely to become insolvent within 5 years of the date of enactment of this section; (ii) the corporation projects a plan to have a present value of financial assistance payments under section 4261 that exceeds $1,000,000,000 if the special partition is not ordered; (iii) the plan has implemented benefit suspensions under section 305(e)(9) as of the date of the enactment of this section; or (iv) the corporation determines it appropriate based on other circumstances. (B) No effect on amount of assistance A plan that is approved for special partition assistance under this section shall not receive reduced special partition assistance on account of not receiving priority consideration under subparagraph (A). (3) Actuarial assumptions and other information The corporation shall accept assumptions incorporated in a multiemployer plan’s determination that it is in critical status or critical and declining status (within the meaning of section 305(b)), or that the plan’s modified funded percentage is less than 40 percent, unless such assumptions are clearly erroneous. The corporation may require such other information as the corporation determines appropriate for making a determination of eligibility and the amount of special partition assistance necessary under this section. (4) Application deadline Any application by a plan for special partition assistance under this section shall be submitted no later than December 31, 2026, and any revised application for special partition assistance shall be submitted no later than December 31, 2027. (5) Notice of application Not later than 120 days after the date of enactment of this section, the corporation shall issue guidance requiring multiemployer plans to notify participants and beneficiaries that the plan has applied for partition under this section, after the corporation has determined that the application is complete. Such notice shall reference the special partition relief internet website described in subsection (p). (d) Determinations on applications A plan’s application for special partition under this section that is timely filed in accordance with guidance issued under subsection (c)(1) shall be deemed approved and the corporation shall issue a special partition order unless the corporation notifies the plan within 120 days of the filing of the application that the application is incomplete or the plan is not eligible under this section. Such notice shall specify the reasons the plan is ineligible for a special partition or information needed to complete the application. If a plan is denied partition under this subsection, the plan may submit a revised application under this section. Any revised application for special partition submitted by a plan shall be deemed approved unless the corporation notifies the plan within 120 days of the filing of the revised application that the application is incomplete or the plan is not eligible under this section. A special partition order issued by the corporation shall be effective no later than 120 days after a plan’s special partition application is approved by the corporation or deemed approved. (e) Amount and manner of special partition assistance (1) In general The liabilities of an eligible multiemployer plan that the corporation assumes pursuant to a special partition order under this section shall be the amount necessary for the plan to meet its funding goals described in subsection (g). (2) No cap Liabilities assumed by the corporation pursuant to a special partition order under this section shall not be capped by the guarantee under section 4022A. The corporation shall have discretion on how liabilities of the plan are partitioned. (f) Successor plan (1) In general The plan created by a special partition order under this section is a successor plan to which section 4022A applies. (2) Plan sponsor and administrator The plan sponsor of an eligible multiemployer plan prior to the special partition and the administrator of such plan shall be the plan sponsor and the administrator, respectively, of the plan created by the partition. (g) Funding goals (1) In general The funding goals of a multiemployer plan eligible for partition under this section are both of the following: (A) The plan will remain solvent over 30 years with no reduction in a participant's or beneficiary’s accrued benefit (except to the extent of a reduction in accordance with section 305(e)(8) adopted prior to the plan’s application for partition under this section). (B) The funded percentage of the plan (disregarding partitioned benefits) at the end of the 30-year period is projected to be 80 percent. (2) Basis The funding projections under paragraph (1) shall be performed on a deterministic basis. (h) Restoration of benefit suspensions An eligible multiemployer plan that is partitioned under this section shall— (1) reinstate any benefits that were suspended under section 305(e)(9) or section 4245(a), effective as of the first month the special partition order is effective, for participants or beneficiaries as of the effective date of the partition; and (2) provide payments equal to the amount of benefits previously suspended to any participants or beneficiaries in pay status as of the effective date of the special partition, payable in the form of a lump sum within 3 months of such effective date or in equal monthly installments over a period of 5 years, with no adjustment for interest. (i) Adjustment of special partition assistance (1) In general Every 5 years, the corporation shall adjust the special partition assistance described in subsection (e) as necessary for the eligible multiemployer plan to satisfy the funding goals described in subsection (g). If the 30-year period described in subsection (g) has lapsed, in applying this paragraph, 5 years shall be substituted for 30 years. (2) Submission of information An eligible multiemployer plan that is the subject of a special partition order under subsection (a) shall submit such information as the corporation may require to determine the amount of the adjustment under paragraph (1). (3) Cessation of adjustments Adjustments under this subsection with respect to special partition assistance for an eligible multiemployer plan shall cease and the corporation shall permanently assume liability for payment of any benefits transferred to the successor plan (subject to subsection (l)) beginning with the first plan year that the funded percentage of the eligible multiemployer plan (disregarding partitioned benefits) is at least 80 percent and the plan’s projected funded percentage for each of the next 10 years is at least 80 percent. Any accumulated funding deficiency of the plan (within the meaning of section 304(a)) shall be reduced to zero as of the first day of the plan year for which partition assistance is permanent under this paragraph. (j) Conditions on plans during partition (1) In general The corporation may impose, by regulation, reasonable conditions on an eligible multiemployer plan that is partitioned under section (a) relating to increases in future accrual rates and any retroactive benefit improvements, allocation of plan assets, reductions in employer contribution rates, diversion of contributions to, and allocation of, expenses to other retirement plans, and withdrawal liability. (2) Limitations The corporation shall not impose conditions on an eligible multiemployer plan as a condition of or following receipt of such partition assistance under this section relating to— (A) any reduction in plan benefits (including benefits that may be adjusted pursuant to section 305(e)(8)); (B) plan governance, including selection of, removal of, and terms of contracts with, trustees, actuaries, investment managers, and other service providers; or (C) any funding rules relating to the plan that is partitioned under this section. (3) Condition An eligible multiemployer plan that is partitioned under subsection (a) shall continue to pay all premiums due under section 4007 for participants and beneficiaries in the plan created by a special partition order until the plan year beginning after a cessation of adjustments applies under subsection (i). (k) Withdrawal liability An employer’s withdrawal liability for purposes of this title shall be calculated taking into account any plan liabilities that are partitioned under subsection (a) until the plan year beginning after the expiration of 15 calendar years from the effective date of the partition. (l) Cessation of partition assistance If a plan that receives partition assistance under this section becomes insolvent for purposes of section 418E (m) Reporting An eligible multiemployer plan that receives partition assistance under this section shall file with the corporation a report, including the following information, in such manner (which may include electronic filing requirements) and at such time as the corporation requires: (1) The funded percentage (as defined in section 305(j)(2)) as of the first day of such plan year, and the underlying actuarial value of assets and liabilities 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, the payment schedule with respect to such withdrawal liability, 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 conditions of the partition assistance. (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 information contained on the most recent annual funding notice submitted by the plan under section 101(f). (15) The information contained on the most recent annual return under section 6058 (16) 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, financial reports, and copies of the portions of collective bargaining agreements relating to plan contributions, funding coverage, or benefits, and such other information as the corporation may reasonably require. Any information disclosed by a plan to the corporation that could identify individual employers shall be confidential and not subject to publication or disclosure. (n) Report to Congress (1) In general Not later than 1 year after the date of enactment of this section and annually thereafter, the board of directors of the corporation shall submit to the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate and the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives a detailed report on the implementation and administration of this section. Such report shall include— (A) information on the name and number of multiemployer plans that have applied for partition assistance under this section; (B) the name and number of such plans that have been approved for partition assistance under this section and the name and number of the plans that have not been approved for special partition assistance; (C) a detailed rationale for any decision by the corporation to not approve an application for special partition assistance; (D) the amount of special partition assistance provided to eligible multiemployer plans (including amounts provided on an individual plan basis and in the aggregate); (E) the name and number of the multiemployer plans that restored benefit suspensions and provided lump sum or monthly installment payments to participants or beneficiaries; (F) the amount of benefits that were restored and lump sum or monthly installment payments that were paid (including amounts provided on an individual plan basis and in the aggregate); (G) the name and number of the plans that received adjustments to partition assistance under subsection (i); (H) a list of, and rationale for, each reasonable condition imposed by the corporation on plans approved for special partition assistance under this section; (I) the contracts that have been awarded by the corporation to implement or administer this section; (J) the number, purpose, and dollar amounts of the contracts that have been awarded to implement or administer the section; (K) a detailed summary of the reports required under subsection (m); and (L) a detailed summary of the feedback received on the pension relief internet website established under subsection (p). (2) PBGC certification The board of directors of the corporation shall include with the report under paragraph (1) a certification and affirmation that the amount of special partition assistance provided to each plan under this section is the amount necessary to meet its funding goals under subsection (g), including, if applicable, any adjustment of special partition assistance as determined under subsection (i). (3) Confidentiality Congress may publicize the reports received under paragraph (1) only after redacting all sensitive or proprietary information. (o) GAO report Not later than 1 year after the first partition application is approved by the corporation under this section, and biennially thereafter, the Comptroller General of the United States shall submit to the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate and the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives a detailed report on the actions of the corporation to implement and administer this section, including an examination of the contracts awarded by such corporation to carry out this section and an analysis of such corporation’s compliance with subsections (e) and (g). (p) Special partition relief website (1) Establishment Not later than 120 days after the date of enactment of this section, the corporation shall establish and maintain a user-friendly, public-facing internet website to foster greater accountability and transparency in the implementation and administration of this section. (2) Purpose The internet website established and maintained under paragraph (1) shall be a portal to key information relating to this section for multiemployer plan administrators and trustees, plan participants, beneficiaries, participating employers, other stakeholders, and the public. (3) Content and function The internet website established under paragraph (1) shall— (A) describe the nature and scope of the special partition authority and assistance under this section in a manner calculated to be understood by the average plan participant; (B) include published guidance, regulations, and all other relevant information on the implementation and administration of this section; (C) include, with respect to plan applications for special partition assistance— (i) a general description of the process by which eligible plans can apply for special partition assistance, information on how and when the corporation will process and consider plan applications; (ii) information on how the corporation will address any incomplete applications as specified in under this section; (iii) a list of the plans that have applied for special partition assistance and, for each application, the date of submission of a completed application; (iv) the text of each plan’s completed application for special partition assistance with appropriate redactions of personal, proprietary, or sensitive information; (v) the estimated date that a decision will be made by the corporation on each application; (vi) the actual date when such decision is made; (vii) the corporation’s decision on each application; and (viii) as applicable, a detailed rationale for any decision not to approve a plan’s application for special partition assistance; (D) provide detailed information on each contract solicited and awarded to implement or administer this section; (E) include reports, audits, and other relevant oversight and accountability information on this section, including the annual reports submitted by the board of directors of the corporation to Congress required under subsection (n), the Office of the Inspector General audits, correspondence, and publications, and the Government Accountability Office reports under subsection (o); (F) provide a clear means for multiemployer plan administrators, plan participants, beneficiaries, other stakeholders, and the public to contact the corporation and provide feedback on the implementation and administration of this section; and (G) be regularly updated to carry out the purposes of this subsection. (q) Office of inspector general There is authorized to be appropriated to the corporation’s Office of Inspector General $24,000,000 for fiscal year 2020, which shall remain available through September 30, 2028, for salaries and expenses necessary for conducting investigations and audits of the implementation and administration of this section. (r) Application of excise tax During the period that a plan is subject to a partition order under this section and prior to a cessation of adjustments pursuant to subsection (i)(3), the plan shall not be subject to section 4971 . 102. Repeal of benefit suspensions for multiemployer plans in critical and declining status (a) Amendment to Internal Revenue Code of 1986 Paragraph (9) of section 432(e) (b) Amendment to Employee Retirement Income Security Act of 1974 Paragraph (9) of section 305(e) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(e) (c) Effective date The repeals made by this section shall not apply to plans that have been approved for a suspension of benefit under section 432(e)(9)(G) 29 U.S.C. 1085(e)(9)(G) 103. Temporary delay of designation of multiemployer plans as in endangered, critical, or critical and declining status (a) In general Notwithstanding the actuarial certification under section 305(b)(3) of the Employee Retirement Income Security Act of 1974 and section 432(b)(3) (1) the status of the plan for its first plan year beginning during the period beginning on March 1, 2020, and ending on February 28, 2021, or the next succeeding plan year (as designated by the plan sponsor in such election), shall be the same as the status of such plan under such sections for the plan year preceding such designated plan year, and (2) in the case of a plan which was in endangered or critical status for the plan year preceding the designated plan year described in paragraph (1), the plan shall not be required to update its plan or schedules under section 305(c)(6) of such Act and section 432(c)(6) of such Code, or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of such Code, whichever is applicable, until the plan year following the designated plan year described in paragraph (1). If section 305 of the Employee Retirement Income Security Act of 1974 and section 432 (b) Exception for plans becoming critical during election If— (1) an election was made under subsection (a) with respect to a multiemployer plan, and (2) such plan has, without regard to such election, been certified by the plan actuary under section 305(b)(3) of the Employee Retirement Income Security Act of 1974 and section 432(b)(3) (c) Election and notice (1) Election An election under subsection (a)— (A) shall be made at such time and in such manner as the Secretary of the Treasury or the Secretary’s delegate may prescribe and, once made, may be revoked only with the consent of the Secretary, and (B) if made— (i) before the date the annual certification is submitted to the Secretary or the Secretary’s delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, shall be included with such annual certification, and (ii) after such date, shall be submitted to the Secretary or the Secretary’s delegate not later than 30 days after the date of the election. (2) Notice to participants (A) In general Notwithstanding section 305(b)(3)(D) of the Employee Retirement Income Security Act of 1974 and section 432(b)(3)(D) (i) the plan sponsor of a multiemployer plan shall not be required to provide notice under such sections, and (ii) the plan sponsor shall provide to the participants and beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Secretary of Labor a notice of the election under subsection (a) and such other information as the Secretary of the Treasury (in consultation with the Secretary of Labor) may require— (I) if the election is made before the date the annual certification is submitted to the Secretary or the Secretary’s delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, not later than 30 days after the date of the certification, and (II) if the election is made after such date, not later than 30 days after the date of the election. (B) Notice of endangered status Notwithstanding section 305(b)(3)(D) of such Act and section 432(b)(3)(D) of such Code, if the plan is certified to be in critical status for any plan year but is in endangered status by reason of an election made under subsection (a), the notice provided under such sections shall be the notice which would have been provided if the plan had been certified to be in endangered status. 104. Temporary extension of the funding improvement and rehabilitation periods for multiemployer pension plans in critical and endangered status for 2020 or 2021 (a) In general If the plan sponsor of a multiemployer plan which is in endangered or critical status for a plan year beginning in 2020 or 2021 (determined after application of section 4) elects the application of this section, then, for purposes of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 (1) except as provided in paragraph (2), the plan’s funding improvement period or rehabilitation period, whichever is applicable, shall be 15 years rather than 10 years, and (2) in the case of a plan in seriously endangered status, the plan’s funding improvement period shall be 20 years rather than 15 years. (b) Definitions and special rules For purposes of this section— (1) Election An election under this section shall be made at such time, and in such manner and form, as (in consultation with the Secretary of Labor) the Secretary of the Treasury or the Secretary’s delegate may prescribe. (2) Definitions Any term which is used in this section which is also used in section 305 of the Employee Retirement Income Security Act of 1974 and section 432 (c) Effective date This section shall apply to plan years beginning after December 31, 2019. 105. Adjustments to funding standard account rules (a) Adjustments (1) Amendment to Employee Retirement Income Security Act of 1974 Section 304(b)(8) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1084(b) (F) Relief for 2020 and 2021 A multiemployer plan with respect to which the solvency test under subparagraph (C) is met as of February 29, 2020, may elect to apply this paragraph by substituting February 29, 2020 August 31, 2008 . (2) Amendment to Internal Revenue Code of 1986 Section 431(b)(8) (F) Relief for 2020 and 2021 A multiemployer plan with respect to which the solvency test under subparagraph (C) is met as of February 29, 2020, may elect to apply this paragraph by substituting February 29, 2020 August 31, 2008 . (b) Effective dates (1) In general The amendments made by this section shall take effect as of the first day of the first plan year ending on or after February 29, 2020, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after February 29, 2020, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 (2) Restrictions on benefit increases Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D) of such Code, as applied by the amendments made by this section, shall take effect on the date of enactment of this Act. 106. PBGC guarantee for participants in multiemployer plans Section 4022A(c)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1322a(c)(1) (A) 100 percent of the accrual rate up to $15, plus 75 percent of the lesser of— (i) $70; or (ii) the accrual rate, if any, in excess of $15; and (B) the number of the participant’s years of credited service. For each calendar year after the first full calendar year following the date of the enactment of the Emergency Pension Plan Relief Act of 2021 . II Relief for Single Employer Pension Plans 201. Extended amortization for single employer plans (a) 15-Year amortization under the Internal Revenue Code of 1986 Section 430(c) (8) 15-year amortization With respect to plan years beginning after December 31, 2019— (A) the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2019 (and all shortfall amortization installments determined with respect to such bases), shall be reduced to zero, and (B) subparagraphs (A) and (B) of paragraph (2) shall each be applied by substituting 15-plan-year period 7-plan-year period . (b) 15-Year amortization under the Employee Retirement Income Security Act of 1974 Section 303(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1083(c) (8) 15-year amortization With respect to plan years beginning after December 31, 2019— (A) the shortfall amortization bases for all plan years preceding the first plan year beginning after December 31, 2019 (and all shortfall amortization installments determined with respect to such bases), shall be reduced to zero, and (B) subparagraphs (A) and (B) of paragraph (2) shall each be applied by substituting 15-plan-year period 7-plan-year period . (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2019. 202. Extension of pension funding stabilization percentages for single employer plans (a) Amendments to Internal Revenue Code of 1986 (1) In general The table contained in subclause (II) of section 430(h)(2)(C)(iv) If the calendar year is: The applicable minimum percentage is: The applicable maximum percentage is: Any year in the period starting in 2012 and ending in 2019 90% 110% Any year in the period starting in 2020 and ending in 2025 95% 105% 2026 90% 110% 2027 85% 115% 2028 80% 120% 2029 75% 125% After 2029 70% 130%. . (2) Floor on 25-year averages Subclause (I) of section 430(h)(2)(C)(iv) of such Code is amended by adding at the end the following: Notwithstanding anything in this subclause, if the average of the first, second, or third segment rate for any 25-year period is less than 5 percent, such average shall be deemed to be 5 percent. (b) Amendments to Employee Retirement Income Security Act of 1974 (1) In general The table contained in subclause (II) of section 303(h)(2)(C)(iv) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1083(h)(2)(C)(iv)(II) If the calendar year is: The applicable minimum percentage is: The applicable maximum percentage is: Any year in the period starting in 2012 and ending in 2019 90% 110% Any year in the period starting in 2020 and ending in 2025 95% 105% 2026 90% 110% 2027 85% 115% 2028 80% 120% 2029 75% 125% After 2029 70% 130%. . (2) Conforming amendments (A) In general Section 101(f)(2)(D) of such Act ( 29 U.S.C. 1021(f)(2)(D) (i) in clause (i) by striking and the Bipartisan Budget Act of 2015 , the Bipartisan Budget Act of 2015, and the Emergency Pension Plan Relief Act of 2021 (ii) in clause (ii) by striking 2023 2029 (B) Statements The Secretary of Labor shall modify the statements required under subclauses (I) and (II) of section 101(f)(2)(D)(i) of such Act to conform to the amendments made by this section. (3) Floor on 25-year averages Subclause (I) of section 303(h)(2)(C)(iv) of such Act ( 29 U.S.C. 1083(h)(2)(C)(iv)(II) Notwithstanding anything in this subclause, if the average of the first, second, or third segment rate for any 25-year period is less than 5 percent, such average shall be deemed to be 5 percent. (c) Effective date The amendments made by this section shall apply with respect to plan years beginning after December 31, 2019.

Summary: Emergency Pension Plan Relief Act of 2021 This bill modifies the funding rules and provides financial assistance for certain pension plans that are underfunded or insolvent. First, the bill expands the authority of, and provides funding for, the Pension Benefit Guaranty Corporation (PBGC) to provide special partition assistance to a multiemployer pension plan that is insolvent or at risk of insolvency. The bill expands eligibility for partition assistance, provides funding for a plan to reach a projected funded ratio of 80% over a 30-year period, and does not require a plan to repay such assistance. The bill further permits a multiemployer pension plan to elect to retain its funding zone status from the previous year for either (1) the first plan year beginning during the period from March 1, 2020, through February 28, 2021; or (2) the next succeeding plan year, as designated by the plan sponsor. A plan may also extend by five years the funding improvement or rehabilitation period if the plan is designated as in endangered or critical status for a plan year beginning in 2020 or 2021. A plan in critical and declining status may not suspend payment of plan benefits. Additionally, the bill adjusts the minimum funding standards for a multiemployer pension plan to account for investment losses and other losses related to the COVID-19 pandemic and modifies the PBGC guarantee formula to increase the maximum potential benefits under a multiemployer pension plan. Finally, the bill makes changes with respect to single employer pension plans, including revising the amortization rules and extending and modifying the pension funding stabilization percentages.