I 
115TH CONGRESS 
2D SESSION 
H. R. 6377 
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 news-
paper. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2018 
Mr. PAULSEN (for himself, Mr. REICHERT, Ms. DELBENE, and Mr. PEARCE) 
introduced the following bill; which was referred to the Committee on 
Education and the Workforce, and in addition to the Committee on Ways 
and Means, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 and the Em-
ployee Retirement Income Security Act of 1974 to pro-
vide alternative minimum funding rules for certain sin-
gle-employer plans maintained by a community news-
paper. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Save Community 
Newspaper Act of 2018’’. 
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SEC. 2. SPECIAL RULES FOR MINIMUM FUNDING STAND-
ARDS FOR COMMUNITY NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 430 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
December 31, 2017, may elect to have the alter-
native standards described in paragraph (3) apply to 
such plan, and any plan sponsored by any member 
of the same controlled group, for purposes of this 
section for plan years beginning with any plan year 
in effect on or beginning after the date of the enact-
ment of this subsection. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the con-
sent of the Secretary. 
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‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
vided in clause (ii), the first, second, and 
third segment rates in effect for any 
month for purposes of this section shall be 
8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for pur-
poses of determining the funding target 
and normal cost of a plan for any plan 
year, the present value of any benefits ac-
crued or earned under the plan for a plan 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the U.S. Treas-
ury obligation yield curve for the day that 
is the valuation date of such plan for such 
plan year. 
‘‘(iii) U.S. 
TREASURY
OBLIGATION 
YIELD CURVE.—For purposes of this sub-
section, the term ‘U.S. Treasury obligation 
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yield curve’ means, with respect to any 
day, a yield curve which shall be prescribed 
by the Secretary for such day on interest- 
bearing obligations of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) 
for all plan years preceding the first plan 
year to which the election under paragraph 
(1) applies (and all shortfall amortization 
installments determined with respect to 
such bases) shall be reduced to zero under 
rules similar to the rules of subsection 
(c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding 
shortfall of such plan for such plan year 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
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‘‘(i) 
30-YEAR
PERIOD.—Subpara-
graphs (A) and (B) of subsection (c)(2) 
shall be applied by substituting ‘30-plan- 
year’ for ‘7-plan-year’ each place it ap-
pears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION FROM AT-RISK TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form, 1 or 
more community newspapers in a single 
State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
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and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in the State in which 
the community newspaper is pub-
lished, 
‘‘(II) for not less than 30 years 
by individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) and ex-
empt from taxation under section 
501(a), which is organized and oper-
ated in the State in which the commu-
nity newspaper is published, and the 
primary purpose of which is to benefit 
communities in such State, or 
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‘‘(V) a combination of persons 
described in subclause (I), (III), or 
(IV), and 
‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Manage-
ment and Budget, with a population of not less 
than 100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other 
person possesses, directly or indirectly, the 
power to direct or cause the direction and man-
agement of such person (including the power to 
elect a majority of the members of the board of 
directors of such person) through the ownership 
of voting securities.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 303 of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1083) is amended by adding at the end the fol-
lowing new subsection: 
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‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
December 31, 2017, may elect to have the alter-
native standards described in paragraph (3) apply to 
such plan, and any plan sponsored by any member 
of the same controlled group, for purposes of this 
section for plan years beginning with any plan year 
in effect on or beginning after the date of the enact-
ment of this subsection. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(3) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
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