1149 
Equivalent Benefit Account established under section 
15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
14 231n–1(a)) amounts equal to the reduction in revenues 
to the Treasury by reason of this section (without regard 
to this subsection). Amounts appropriated by the pre-
ceding sentence shall be transferred from the general fund 
at such times and in such manner as to replicate to the 
extent possible the transfers which would have occurred 
to such Trust Fund or Account had this section not been 
enacted. 
Subtitle G—Credits for Paid Sick 
and Family Leave 
SEC. 261. EXTENSION OF CREDITS. 
Sections 7001(g), 7002(e), 7003(g), and 7004(e) of 
Public Law 116–127 are each amended by striking 
‘‘2020’’ and inserting ‘‘2021’’. 
SEC. 262. REPEAL OF REDUCED RATE OF CREDIT FOR CER-
TAIN LEAVE. 
(a) PAYROLL CREDIT.—Section 7001(b) of Public 
Law 116–127 is amended by striking ‘‘$200 ($511 in the 
case of any day any portion of which is paid sick time 
described in paragraph (1), (2), or (3) of section 5102(a) 
of the Emergency Paid Sick Leave Act)’’ and inserting 
‘‘$511’’. 
(b) SELF-EMPLOYED CREDIT.— 
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(1) IN
GENERAL.—Section 7002(c)(1)(B) of 
Public Law 116–127 is amended to read as follows: 
‘‘(B) the lesser of— 
‘‘(i) $511, or 
‘‘(ii) the average daily self-employ-
ment income of the individual for the tax-
able year.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7002(d)(3) of Public Law 116–127 is amended by 
striking ‘‘$2,000 ($5,110 in the case of any day any 
portion of which is paid sick time described in para-
graph (1), (2), or (3) of section 5102(a) of the 
Emergency Paid Sick Leave Act)’’ and inserting 
‘‘$5,110’’. 
SEC. 263. FEDERAL, STATE, AND LOCAL GOVERNMENTS AL-
LOWED TAX CREDITS FOR PAID SICK AND 
PAID FAMILY AND MEDICAL LEAVE. 
(a) CREDIT FOR REQUIRED PAID SICK LEAVE.—Sec-
tion 7001(e) of Public Law 116–127 is amended by strik-
ing paragraph (4). 
(b) CREDIT FOR REQUIRED PAID FAMILY LEAVE.— 
Section 7003(e) of Public Law 116–127 is amended by 
striking paragraph (4). 
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SEC. 264. CREDITS NOT ALLOWED TO CERTAIN LARGE EM-
PLOYERS. 
(a) CREDIT FOR REQUIRED PAID SICK LEAVE.— 
(1) IN GENERAL.—Section 7001(a) of Public 
Law 116–127 is amended by striking ‘‘In the case 
of an employer’’ and inserting ‘‘In the case of an eli-
gible employer’’. 
(2) ELIGIBLE EMPLOYER.—Section 7001(c) of 
Public Law 116–127 is amended by striking ‘‘For 
purposes of this section, the term’’ and all that pre-
cedes it and inserting the following: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means any employer other an applicable 
large employer (as defined in section 4980H(c)(2), 
determined by substituting ‘500’ for ‘50’ each place 
it appears in subparagraphs (A) and (B) thereof and 
without regard to subparagraphs (D) and (F) there-
of). For purposes of the preceding sentence, the 
Government of the United States, the government of 
any State or political subdivision thereof, or any 
agency or instrumentality of any of the foregoing, 
shall not be treated as an applicable large employer. 
‘‘(2) QUALIFIED
SICK
LEAVE
WAGES.—The 
term’’. 
(b) CREDIT FOR REQUIRED PAID FAMILY LEAVE.— 
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(1) IN GENERAL.—Section 7003(a) of Public 
Law 116–127 is amended by striking ‘‘In the case 
of an employer’’ and inserting ‘‘In the case of an eli-
gible employer’’. 
(2) ELIGIBLE EMPLOYER.—Section 7003(c) of 
Public Law 116–127 is amended by striking ‘‘For 
purposes of this section, the term’’ and all that pre-
cedes it and inserting the following: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means any employer other an applicable 
large employer (as defined in section 4980H(c)(2), 
determined by substituting ‘500’ for ‘50’ each place 
it appears in subparagraphs (A) and (B) thereof and 
without regard to subparagraphs (D) and (F) there-
of). For purposes of the preceding sentence, the 
Government of the United States, the government of 
any State or political subdivision thereof, or any 
agency or instrumentality of any of the foregoing, 
shall not be treated as an applicable large employer. 
‘‘(2) QUALIFIED FAMILY LEAVE WAGES.—The 
term’’. 
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SEC. 265. EFFECTIVE DATE. 
The amendments made by this title shall take effect 
as if included in the provisions of Public Law 116–127 
to which they relate. 
TITLE III—ADMINISTRATIVE 
SEC. 301. DELAY OF CERTAIN DEADLINES. 
(a) FILING DEADLINES FOR 2019.—In the case of 
any return required to be filed for a taxable year ending 
in 2019, including for purposes of section 6151(a) of the 
Internal Revenue Code of 1986, section 6072(a) of such 
Code shall be applied— 
(1) by substituting ‘‘July’’ for ‘‘April’’, and 
(2) by substituting ‘‘the seventh month’’ for 
‘‘the fourth month’’. 
(b) ESTIMATED
TAX
PAYMENTS
FOR
INDIVID-
UALS.— 
(1) IN GENERAL.—In the case of an individual, 
the due date for any required installment under sec-
tion 6654 of the Internal Revenue Code of 1986 
which (but for the application of this section) would 
be due during the applicable period shall not be due 
before October 15, 2020, and all such installments 
shall be treated as one installment due on such date. 
The Secretary of the Treasury (or the Secretary’s 
delegate) shall prescribe such regulations or other 
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guidance as may be necessary to carry out the pur-
poses of this subsection. 
(2) APPLICABLE PERIOD.—For purposes of this 
subsection, the applicable period is the period begin-
ning on the date of the enactment of this Act and 
ending before October 15, 2020. 
TITLE IV—RETIREMENT 
PROVISIONS 
SEC. 401. SPECIAL RULES FOR USE OF RETIREMENT 
FUNDS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
(1) IN GENERAL.—Section 72(t) of the Internal 
Revenue Code of 1986 shall not apply to any 
coronavirus-related distribution. 
(2) AGGREGATE DOLLAR LIMITATION.— 
(A) IN GENERAL.—For purposes of this 
subsection, the aggregate amount of distribu-
tions received by an individual which may be 
treated as coronavirus-related distributions for 
any taxable year shall not exceed $100,000. 
(B) TREATMENT
OF
PLAN
DISTRIBU-
TIONS.—If a distribution to an individual would 
(without regard to subparagraph (A)) be a 
coronavirus-related distribution, a plan shall not 
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be treated as violating any requirement of the 
Internal Revenue Code of 1986 merely because 
the 
plan 
treats 
such 
distribution 
as 
a 
coronavirus-related distribution, unless the ag-
gregate amount of such distributions from all 
plans maintained by the employer (and any 
member of any controlled group which includes 
the employer) to such individual exceeds 
$100,000. 
(C) CONTROLLED GROUP.—For purposes 
of subparagraph (B), the term ‘‘controlled 
group’’ means any group treated as a single 
employer under subsection (b), (c), (m), or (o) 
of section 414 of the Internal Revenue Code of 
1986. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a coronavirus-related distribution may, at 
any time during the 3-year period beginning on 
the day after the date on which such distribu-
tion was received, make 1 or more contributions 
in an aggregate amount not to exceed the 
amount of such distribution to an eligible retire-
ment plan of which such individual is a bene-
ficiary and to which a rollover contribution of 
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such distribution could be made under section 
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
457(e)(16), of the Internal Revenue Code of 
1986, as the case may be. 
(B) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS
FROM
ELIGIBLE
RETIREMENT 
PLANS
OTHER
THAN
IRAS.—For purposes of 
the Internal Revenue Code of 1986, if a con-
tribution is made pursuant to subparagraph (A) 
with respect to a coronavirus-related distribu-
tion from an eligible retirement plan other than 
an individual retirement plan, then the taxpayer 
shall, to the extent of the amount of the con-
tribution, be treated as having received the 
coronavirus-related distribution in an eligible 
rollover distribution (as defined in section 
402(c)(4) of such Code) and as having trans-
ferred the amount to the eligible retirement 
plan in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
(C) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM IRAS.—For purposes of the 
Internal Revenue Code of 1986, if a contribu-
tion is made pursuant to subparagraph (A) 
with respect to a coronavirus-related distribu-
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tion from an individual retirement plan (as de-
fined by section 7701(a)(37) of such Code), 
then, to the extent of the amount of the con-
tribution, the coronavirus-related distribution 
shall be treated as a distribution described in 
section 408(d)(3) of such Code and as having 
been transferred to the eligible retirement plan 
in a direct trustee to trustee transfer within 60 
days of the distribution. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) 
CORONAVIRUS-RELATED
DISTRIBU-
TION.—Except as provided in paragraph (2), 
the term ‘‘coronavirus-related distribution’’ 
means any distribution from an eligible retire-
ment plan made— 
(i) on or after January 1, 2020, and 
before December 31, 2020, 
(ii) to an individual— 
(I) who is diagnosed with the 
virus 
SARS–CoV–2 
or 
with 
coronavirus disease 2019 (COVID– 
19) by a test approved by the Centers 
for Disease Control and Prevention, 
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(II) whose spouse or dependent 
(as defined in section 152 of the In-
ternal Revenue Code of 1986) is diag-
nosed with such virus or disease by 
such a test, or 
(III) who experiences adverse fi-
nancial consequences as a result of 
being quarantined, being furloughed 
or laid off or having work hours re-
duced due to such virus or disease, 
being unable to work due to lack of 
child care due to such virus or dis-
ease, closing or reducing hours of a 
business owned or operated by the in-
dividual due to such virus or disease, 
or other factors as determined by the 
Secretary of the Treasury (or the Sec-
retary’s delegate). 
(B) EMPLOYEE CERTIFICATION.—The ad-
ministrator of an eligible retirement plan may 
rely on an employee’s certification that the em-
ployee satisfies the conditions of subparagraph 
(A)(ii) in determining whether any distribution 
is a coronavirus-related distribution. 
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(C) ELIGIBLE
RETIREMENT
PLAN.—The 
term ‘‘eligible retirement plan’’ has the meaning 
given such term by section 402(c)(8)(B) of the 
Internal Revenue Code of 1986. 
(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.— 
(A) IN
GENERAL.—In the case of any 
coronavirus-related distribution, unless the tax-
payer elects not to have this paragraph apply 
for any taxable year, any amount required to be 
included in gross income for such taxable year 
shall be so included ratably over the 3-taxable- 
year period beginning with such taxable year. 
(B) SPECIAL RULE.—For purposes of sub-
paragraph (A), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) of the In-
ternal Revenue Code of 1986 shall apply. 
(6) SPECIAL RULES.— 
(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405 of the Internal 
Revenue Code of 1986, coronavirus-related dis-
tributions shall not be treated as eligible roll-
over distributions. 
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(B) 
CORONAVIRUS-RELATED
DISTRIBU-
TIONS TREATED AS MEETING PLAN DISTRIBU-
TION REQUIREMENTS.—For purposes of the In-
ternal Revenue Code of 1986, a coronavirus-re-
lated distribution shall be treated as meeting 
the requirements of sections 401(k)(2)(B)(i), 
403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) 
of such Code. 
(b) LOANS FROM QUALIFIED PLANS.— 
(1) INCREASE IN LIMIT ON LOANS NOT TREAT-
ED
AS
DISTRIBUTIONS.—In the case of any loan 
from a qualified employer plan (as defined under 
section 72(p)(4) of the Internal Revenue Code of 
1986) to a qualified individual made during the 180- 
day period beginning on the date of the enactment 
of this Act— 
(A) clause (i) of section 72(p)(2)(A) of 
such Code shall be applied by substituting 
‘‘$100,000’’ for ‘‘$50,000’’, and 
(B) clause (ii) of such section shall be ap-
plied by substituting ‘‘the present value of the 
nonforfeitable accrued benefit of the employee 
under the plan’’ for ‘‘one-half of the present 
value of the nonforfeitable accrued benefit of 
the employee under the plan’’. 
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(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ 
means any individual who is described in subsection 
(a)(4)(A)(ii). 
(c) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i). 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annuity 
contract which is made— 
(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary of the Treasury or 
the Secretary of Labor (or the delegate of 
either such Secretary) under any provision 
of this section, and 
(ii) on or before the last day of the 
first plan year beginning on or after Janu-
ary 1, 2022, or such later date as the Sec-
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1163 
retary of the Treasury (or the Secretary’s 
delegate) may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d) of the Internal Revenue Code 
of 1986), clause (ii) shall be applied by sub-
stituting the date which is 2 years after the 
date otherwise applied under clause (ii). 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that 
this section or the regulation de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by this 
section or such regulation, the effec-
tive date specified by the plan), and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such 
plan or contract amendment were in effect, 
and 
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(ii) such plan or contract amendment 
applies retroactively for such period. 
SEC. 402. SINGLE-EMPLOYER PLAN FUNDING RULES. 
(a) DELAY IN PAYMENT OF MINIMUM REQUIRED 
CONTRIBUTIONS.—In the case of any minimum required 
contribution (as determined under section 430(a) of the 
Internal Revenue Code of 1986 and section 303(a) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1083(a))) which (but for this section) would other-
wise be due under section 430(j) of such Code (including 
quarterly contributions under paragraph (3) thereof) and 
section 303(j) of such Act (29 U.S.C. 1083(j)) (including 
quarterly contributions under paragraph (3) thereof) dur-
ing calendar year 2020— 
(1) such contributions shall not be required to 
be made until January 1, 2021, and 
(2) the amount of each such minimum required 
contribution shall be increased by interest accruing 
for the period between the original due date (without 
regard to this section) for the contribution and the 
payment date, at the effective rate of interest for the 
plan for the plan year which includes such payment 
date. 
(b) BENEFIT RESTRICTION STATUS.—For purposes 
of section 436 of the Internal Revenue Code of 1986 and 
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1165 
section 206(g) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1056(g)), a plan sponsor may 
elect to treat the plan’s adjusted funding target attain-
ment percentage for the last plan year ending before Janu-
ary 1, 2020, as the adjusted funding target attainment 
percentage for plan years which include calendar year 
2020. 
SEC. 403. TEMPORARY WAIVER OF REQUIRED MINIMUM 
DISTRIBUTION RULES FOR CERTAIN RETIRE-
MENT PLANS AND ACCOUNTS. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(I) TEMPORARY WAIVER OF MINIMUM RE-
QUIRED DISTRIBUTION.— 
‘‘(i) IN GENERAL.—The requirements 
of this paragraph shall not apply for cal-
endar year 2020 to— 
‘‘(I) a defined contribution plan 
which is described in this subsection 
or in section 403(a) or 403(b), 
‘‘(II) a defined contribution plan 
which is an eligible deferred com-
pensation plan described in section 
457(b) but only if such plan is main-
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tained by an employer described in 
section 457(e)(1)(A), or 
‘‘(III) an individual retirement 
plan. 
‘‘(ii) SPECIAL
RULE
FOR
REQUIRED 
BEGINNING
DATES
IN
2020.—Clause (i) 
shall apply to any distribution which is re-
quired to be made in calendar year 2020 
by reason of— 
‘‘(I) a required beginning date 
occurring in such calendar year, and 
‘‘(II) such distribution not having 
been made before January 1, 2020. 
‘‘(iii) SPECIAL
RULES
REGARDING 
WAIVER
PERIOD.—For purposes of this 
paragraph— 
‘‘(I) the required beginning date 
with respect to any individual shall be 
determined without regard to this 
subparagraph for purposes of applying 
this paragraph for calendar years 
after 2020, 
‘‘(II) if clause (ii) of subpara-
graph (B) applies, the 5-year period 
described in such clause shall be de-
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termined without regard to calendar 
year 2020, 
‘‘(III) if clause (iii) of subpara-
graph (E) applies, the 10-year period 
described in such clause shall be de-
termined without regard to calendar 
year 2020, and 
‘‘(IV) if clause (i) of subpara-
graph (H) applies, the 10-year period 
described in such clause shall be de-
termined without regard to calendar 
year 2020.’’. 
(b) ELIGIBLE ROLLOVER DISTRIBUTIONS.—Section 
402(c)(4) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘2009’’ each place it appears in the last 
sentence and inserting ‘‘2020’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply for calendar years beginning 
after December 31, 2019. 
(2) PROVISIONS RELATING TO PLAN OR CON-
TRACT AMENDMENTS.— 
(A) IN GENERAL.—If this paragraph ap-
plies to any pension plan or contract amend-
ment, such pension plan or contract shall not 
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1168 
fail to be treated as being operated in accord-
ance with the terms of the plan during the pe-
riod described in subparagraph (B)(ii) solely be-
cause the plan operates in accordance with this 
section. 
(B) AMENDMENTS TO WHICH PARAGRAPH 
APPLIES.— 
(i) IN
GENERAL.—This paragraph 
shall apply to any amendment to any pen-
sion plan or annuity contract which— 
(I) is made pursuant to the 
amendments made by this section, 
and 
(II) is made on or before the last 
day of the first plan year beginning 
on or after January 1, 2022. 
In the case of a governmental plan, sub-
clause (II) shall be applied by substituting 
‘‘2024’’ for ‘‘2022’’. 
(ii) 
CONDITIONS.—This 
paragraph 
shall not apply to any amendment unless 
during the period beginning on the effec-
tive date of the amendment and ending on 
December 31, 2020, the plan or contract is 
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operated as if such plan or contract 
amendment were in effect. 
SEC. 404. MODIFICATION OF SPECIAL RULES FOR MINIMUM 
FUNDING 
STANDARDS 
FOR 
COMMUNITY 
NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Subsection (m) of section 430 of the Internal Rev-
enue Code of 1986, as added by the Setting Every Com-
munity Up for Retirement Enhancement Act of 2019, is 
amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE NEWSPAPER PLAN SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means 
the plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
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1170 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) 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. 
‘‘(4) 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 
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1171 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the United 
States Treasury obligation yield curve for 
the day that is the valuation date of such 
plan for such plan year. 
‘‘(iii) UNITED STATES TREASURY OB-
LIGATION YIELD CURVE.—For purposes of 
this subsection, the term ‘United States 
Treasury obligation 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). 
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1172 
‘‘(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.— 
‘‘(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. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
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1173 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means any plan to which this 
section applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any 
time during the 11-year period ending on 
the date of the enactment of this sub-
section, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly or indi-
rectly, during the entire 30-year period 
ending on the date of the enactment of this 
subsection by individuals who are members 
of the same family, and does not publish or 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
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‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on the date of the en-
actment of this subsection by individ-
uals who are members of the same 
family, 
‘‘(III) by 1 or more trusts, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), or 
‘‘(IV) by a combination of per-
sons described in subclause (I), (II), 
or (III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation. 
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‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly 
published on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(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. 
‘‘(6) CONTROLLED
GROUP.—For purposes of 
this subsection, the term ‘controlled group’ means all 
persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 as of the 
date of the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Subsection (m) of section 
303 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1083(m)), as added by the Setting Every 
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1176 
Community Up for Retirement Enhancement Act of 2019, 
is amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE NEWSPAPER PLAN SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means 
the plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) 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 
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1177 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(4) 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 United 
States Treasury obligation yield curve for 
the day that is the valuation date of such 
plan for such plan year. 
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1178 
‘‘(iii) UNITED STATES TREASURY OB-
LIGATION YIELD CURVE.—For purposes of 
this subsection, the term ‘United States 
Treasury obligation yield curve’ means, 
with respect to any day, a yield curve 
which shall be prescribed by the Secretary 
of the Treasury 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 
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1179 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(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. 
‘‘(5) 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 as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
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1180 
publishing 1 or more newspapers which 
were published by the employer at any 
time during the 11-year period ending on 
the date of the enactment of this sub-
section, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly, or indi-
rectly, during the entire 30-year period 
ending on the date of the enactment of this 
subsection by individuals who are members 
of the same family, and does not publish or 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
‘‘(iii) is controlled, directly, or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
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1181 
‘‘(II) during the entire 30-year 
period ending on the date of the en-
actment of this subsection by individ-
uals who are members of the same 
family, 
‘‘(III) by 1 or more trusts, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), or 
‘‘(IV) by a combination of per-
sons described in subclause (I), (II), 
or (III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation. 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly 
published on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other 
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1182 
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. 
‘‘(6) CONTROLLED
GROUP.—For purposes of 
this subsection, the term ‘controlled group’ means all 
persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 of the In-
ternal Revenue Code of 1986 as of the date of the 
enactment of this subsection. 
‘‘(7) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—Notwithstanding any other provision of law 
or any regulation issued by the Pension Benefit 
Guaranty Corporation, in the case of a plan for 
which an election is made to apply the alternative 
standards described in paragraph (3), the additional 
premium under section 4006(a)(3)(E) shall be deter-
mined as if such election had not been made.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years ending after Decem-
ber 31, 2017. 
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1183 
SEC. 405. APPLICATION OF COOPERATIVE AND SMALL EM-
PLOYER CHARITY PENSION PLAN RULES TO 
CERTAIN CHARITABLE EMPLOYERS WHOSE 
PRIMARY EXEMPT PURPOSE IS PROVIDING 
SERVICES WITH RESPECT TO MOTHERS AND 
CHILDREN. 
(a) EMPLOYEE RETIREMENT INCOME SECURITY ACT 
OF 1974.—Section 210(f)(1) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1060(f)(1)) is 
amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(B); 
(2) by striking the period at the end of sub-
paragraph (C)(iv) and inserting ‘‘; or’’; and 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) that, as of January 1, 2000, was 
maintained by an employer— 
‘‘(i) described in section 501(c)(3) of 
the Internal Revenue Code of 1986, 
‘‘(ii) who has been in existence since 
at least 1938, 
‘‘(iii) who conducts medical research 
directly or indirectly through grant mak-
ing, and 
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1184 
‘‘(iv) whose primary exempt purpose 
is to provide services with respect to moth-
ers and children.’’. 
(b) INTERNAL REVENUE CODE OF 1986.—Section 
414(y)(1) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(B); 
(2) by striking the period at the end of sub-
paragraph (C)(iv) and inserting ‘‘; or’’; and 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) that, as of January 1, 2000, was 
maintained by an employer— 
‘‘(i) described in section 501(c)(3), 
‘‘(ii) who has been in existence since 
at least 1938, 
‘‘(iii) who conducts medical research 
directly or indirectly through grant mak-
ing, and 
‘‘(iv) whose primary exempt purpose 
is to provide services with respect to moth-
ers and children.’’. 
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1185 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2018. 
SEC. 406. EXTENDED AMORTIZATION FOR SINGLE EM-
PLOYER PLANS. 
(a) 15-YEAR AMORTIZATION UNDER THE INTERNAL 
REVENUE CODE OF 1986.—Section 430(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(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 be-
ginning 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 para-
graph (2) shall each be applied by substituting 
‘15-plan-year period’ for ‘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)) is amended by adding at the 
end the following new paragraph: 
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1186 
‘‘(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 be-
ginning 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 para-
graph (2) shall each be applied by substituting 
‘15-plan-year period’ for ‘7-plan-year period’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
SEC. 407. EXTENSION OF PENSION FUNDING STABILIZA-
TION PERCENTAGES FOR SINGLE EMPLOYER 
PLANS. 
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 430(h)(2)(C)(iv) of the Inter-
nal Revenue Code of 1986 is amended to read as fol-
lows: 
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1187 
‘‘If the calendar year is: 
The applica-
ble min-
imum per-
centage is: 
The applica-
ble max-
imum per-
centage is: 
Any year in the period starting in 2012 and end-
ing in 2019 .........................................................
90% 
110%
Any year in the period starting in 2020 and end-
ing 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: ‘‘Not-
withstanding anything in this subclause, if the aver-
age of the first, second, or third segment rate for 
any 25-year period is less than 5 percent, such aver-
age shall be deemed to be 5 percent.’’. 
(b) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 303(h)(2)(C)(iv) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1083(h)(2)(C)(iv)(II)) is amended to read as 
follows: 
‘‘If the calendar year is: 
The applica-
ble min-
imum per-
centage is: 
The applica-
ble max-
imum per-
centage is: 
Any year in the period starting in 2012 and end-
ing in 2019 .........................................................
90% 
110%
Any year in the period starting in 2020 and end-
ing in 2025 .........................................................
95% 
105%
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1188 
‘‘If the calendar year is: 
The applica-
ble min-
imum per-
centage is: 
The applica-
ble max-
imum per-
centage is: 
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)) is amend-
ed— 
(i) in clause (i) by striking ‘‘and the 
Bipartisan Budget Act of 2015’’ both 
places it appears and inserting ‘‘, the Bi-
partisan Budget Act of 2015, and the 
Emergency Pension Plan Relief Act of 
2020’’, and 
(ii) in clause (ii) by striking ‘‘2023’’ 
and inserting ‘‘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)) is amended by adding 
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1189 
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.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after December 31, 2019. 
TITLE V—REHABILITATION FOR 
MULTIEMPLOYER PENSIONS 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Rehabilitation for 
Multiemployer Pensions Act of 2020’’. 
SEC. 502. PENSION REHABILITATION ADMINISTRATION; ES-
TABLISHMENT; 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.— 
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1190 
(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
DIREC-
TORS, OFFICERS, AND
EMPLOYEES.—The Di-
rector may appoint Deputy Directors, officers, 
and employees, including attorneys, in accord-
ance 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, per-
sonnel, 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 
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1191 
agreed upon by the Director and the head 
of the Federal agency providing the serv-
ices. 
(ii) SUBJECT TO APPROPRIATIONS.— 
Contract authority under clause (i) shall be 
effective for any fiscal year only to the ex-
tent that appropriations are available for 
that purpose. 
SEC. 503. 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 estab-
lished 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’), con-
sisting of such amounts as may be appropriated or cred-
ited 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 506 of the Reha-
bilitation for Multiemployer Pensions Act of 2020. 
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1193 
(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 fol-
lowing new item: 
‘‘Sec. 9512. Pension Rehabilitation Trust Fund.’’. 
SEC. 504. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) LOAN AUTHORITY.— 
(1) IN GENERAL.—The Pension Rehabilitation 
Administration established under section 2 is au-
thorized— 
(A) to make loans to multiemployer plans 
(as defined in section 414(f) of the Internal 
Revenue Code of 1986) which are defined ben-
efit plans (as defined in section 414(j) of such 
Code) and— 
(i)(I) which are in critical and declin-
ing status (within the meaning of section 
432(b)(6) of such Code and section 
305(b)(6) of the Employee Retirement and 
Income Security Act) as of the date of the 
enactment of this section, or during the 2- 
year period beginning on such date, or 
(II) with respect to which a suspen-
sion of benefits has been approved under 
section 432(e)(9) of such Code and section 
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1194 
305(e)(9) of such Act as of such date or 
during such period; 
(ii) which as of such date of enact-
ment, or during such period, 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 modified 
funded percentage of less than 40 percent, 
and have a ratio of active to inactive par-
ticipants which is less than 2 to 5; or 
(iii) which are insolvent for purposes 
of section 418E of such Code as of such 
date of enactment, or during such period, 
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. 
For purposes of subparagraph (A)(ii), the term 
‘‘modified funded percentage’’ means the percentage 
equal to a fraction the numerator of which is current 
value of plan assets (as defined in section 3(26) of 
such Act) and the denominator of which is current 
liabilities (as defined in section 431(c)(6)(D) of such 
Code and section 304(c)(6)(D) of such Act). 
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(2) CONSULTATION.—The Director of the Pen-
sion 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 es-
tablished not later than May 31, 2020, with 
guidance regarding such program to be promul-
gated by the Director of the Pension Rehabilita-
tion Administration, in consultation with the 
Director of the Pension Benefit Guaranty Cor-
poration, the Secretary of the Treasury, and 
the Secretary of Labor, not later than August 
31, 2020. 
(B) LOANS
AUTHORIZED
BEFORE
PRO-
GRAM DATE.—Without regard to whether the 
program under subparagraph (A) has been es-
tablished, a plan may apply for a loan under 
this section before either date described in such 
subparagraph, and the Pension Rehabilitation 
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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 inter-
est on the loan for a period of 29 years begin-
ning on the date of the loan (or 19 years in the 
case of a plan making the election under sub-
section (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 col-
lective bargaining agreement which pro-
vides for reduced contribution rates, dur-
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1197 
ing the 30-year period described in sub-
paragraphs (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 In-
come Security Act of 1974, or under sec-
tion 418E of such Code, before the loan, 
the plan will reinstate the suspended bene-
fits (or will not carry out any suspension 
which has been approved but not yet im-
plemented); 
(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 Ad-
ministration provides in the loan terms. 
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The terms of the loan shall not make reference 
to whether the plan is receiving financial assist-
ance 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 sub-
section (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 0.2 percentage points higher 
than such rate of interest on such date; or 
(ii) the rate necessary to collect reve-
nues 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— 
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1199 
(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 pe-
riod; and 
(ii) the plan is reasonably expected to 
be able to pay benefits and the interest on 
the loan during such period and to accu-
mulate sufficient funds to repay the prin-
cipal 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 ap-
plying 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 al-
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ready receiving such financial assistance as a 
result of a previous application; 
(D) state in what manner the loan pro-
ceeds will be invested pursuant to subsection 
(d), the person from whom any annuity con-
tracts under such subsection will be purchased, 
and the person who will be the investment man-
ager for any portfolio implemented under such 
subsection; and 
(E) include such other information and 
certifications as the Director of the Pension Re-
habilitation Administration shall require. 
(2) STANDARD FOR ACCEPTING ACTUARIAL AND 
PLAN SPONSOR DETERMINATIONS AND DEMONSTRA-
TIONS IN THE APPLICATION.—In evaluating the plan 
sponsor’s application, the Director of the Pension 
Rehabilitation Administration shall accept the deter-
minations and demonstrations in the application un-
less the Director, in consultation with the Director 
of the Pension Benefit Guaranty Corporation, the 
Secretary of the Treasury, and the Secretary of 
Labor, concludes that any such determinations or 
demonstrations in the application (or any underlying 
assumptions) are clearly erroneous or are incon-
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sistent with any rules issued by the Director pursu-
ant to subsection (g). 
(3) REQUIRED ACTIONS; DEEMED APPROVAL.— 
The Director of the Pension Rehabilitation Adminis-
tration shall approve any application under this sub-
section within 90 days after the submission of such 
application unless such application is incomplete or 
the Director makes a conclusion described in para-
graph (2) with respect to the application. An appli-
cation 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 Ad-
ministration 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 Retire-
ment Income Security Act of 1974 or under section 
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1202 
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 Adminis-
tration 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, at least as rapidly as equal installments 
over the 10-year period beginning with the 21st year 
after the date of the loan. In the case of a plan mak-
ing this election, the interest on the loan shall be re-
duced by 0.5 percentage points. 
(d) LOAN AMOUNT AND USE.— 
(1) AMOUNT OF LOAN.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B) 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 im-
plement a portfolio described in paragraph 
(3)(C) (or a combination of the two) sufficient 
to provide benefits of participants and bene-
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ficiaries of the plan in pay status, and termi-
nated vested benefits, at the time the loan is 
made. 
(B) PLANS
WITH
SUSPENDED
BENE-
FITS.—In the case of a plan with respect to 
which a suspension of benefits has been ap-
proved 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 sec-
tion 418E of such Code— 
(i) the suspension of benefits shall not 
be taken into account in applying subpara-
graph (A); and 
(ii) the loan amount shall be the 
amount sufficient to provide benefits of 
participants and beneficiaries of the plan 
in pay status and terminated vested bene-
fits at the time the loan is made, deter-
mined 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 AS-
SISTANCE.— 
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1204 
(A) IN GENERAL.—In the case of a plan 
which is also applying for financial assistance 
under section 4261(d) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1431(d))— 
(i) the plan sponsor shall submit the 
loan application and the application for fi-
nancial assistance jointly to the Pension 
Rehabilitation Administration and the Pen-
sion 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 sub-
section (a) shall not exceed an amount 
equal to the excess of— 
(I) the amount determined under 
paragraph (1)(A) or (1)(B)(ii) (which-
ever is applicable); over 
(II) the amount of such financial 
assistance. 
(B) PLANS ALREADY RECEIVING PBGC AS-
SISTANCE.—The Director of the Pension Reha-
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1205 
bilitation 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 al-
ready 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.—Notwithstanding sec-
tion 432(f)(2)(A)(ii) of the Internal Revenue 
Code of 1986 and section 305(f)(2)(A)(ii) of 
such Act, the loan received under subsection (a) 
shall only 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
REQUIRE-
MENTS.—The 
annuity 
contracts 
purchased 
under subparagraph (A) shall be issued by an 
insurance company which is licensed to do busi-
ness under the laws of any State and which is 
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1206 
rated A or better by a nationally recognized sta-
tistical rating organization, and the purchase of 
such contracts shall meet all applicable fidu-
ciary standards under the Employee Retirement 
Income Security Act of 1974. 
(C) PORTFOLIO.— 
(i) IN
GENERAL.—A portfolio de-
scribed in this subparagraph is— 
(I) a cash matching portfolio or 
duration matching portfolio consisting 
of investment grade (as rated by a na-
tionally recognized statistical rating 
organization) fixed income invest-
ments, 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 pre-
scribed by the Secretary of the Treas-
ury in regulations which has a similar 
risk profile to the portfolios described 
in subclause (I) and is equally protec-
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1207 
tive of the interests of participants 
and beneficiaries. 
Once implemented, such a portfolio shall 
be maintained until all liabilities to partici-
pants and beneficiaries in pay status, and 
terminated vested participants, at the time 
of the loan are satisfied. 
(ii) FIDUCIARY
DUTY.—Any invest-
ment 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 Secu-
rity Act of 1974. 
(D) ACCOUNTING.— 
(i) IN GENERAL.—Annuity contracts 
purchased 
and 
portfolios 
implemented 
under this paragraph shall be used solely 
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1208 
to provide the benefits described in para-
graph (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 IN-
VESTMENTS.— 
(I) IN GENERAL.—Any portfolio 
implemented under this paragraph 
shall be subject to oversight by the 
Pension Rehabilitation Administra-
tion, 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 
oversight under subclause (I) deter-
mines an inadequacy, the plan spon-
sor shall take remedial action to en-
sure that the inadequacy will be cured 
within 2 years of such determination. 
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1209 
(E) 
OMBUDSPERSON.—The 
Participant 
and Plan Sponsor Advocate established under 
section 4004 of the Employee Retirement In-
come Security Act of 1974 shall act as 
ombudsperson for participants and beneficiaries 
on behalf of whom annuity contracts are pur-
chased or who are covered by a portfolio under 
this paragraph. 
(e) COLLECTION OF REPAYMENT.—Except as pro-
vided in subsection (f), the Pension Rehabilitation Admin-
istration 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 Pen-
sion Rehabilitation Administration shall negotiate with the 
plan sponsor revised terms for repayment (including in-
stallment payments over a reasonable period or forgive-
ness 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 Direc-
tor of the Pension Rehabilitation Administration, in con-
sultation with the Director of the Pension Benefit Guar-
anty Corporation, the Secretary of the Treasury, and the 
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1210 
Secretary 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 pur-
poses of such applications, and assumptions regarding in-
terest rates, mortality, and distributions with respect to 
a portfolio described in subsection (d)(3)(C). 
(h) REPORT TO CONGRESS ON STATUS OF CERTAIN 
PLANS WITH LOANS.—Not later than 1 year after the 
first loan is made under this section, and annually there-
after, the Director of the Pension Rehabilitation Adminis-
tration shall submit to the Committee on Ways and Means 
and the Committee on Education and Labor of the House 
of Representatives, and the Committee on Finance and the 
Committee on Health, Education, Labor, and Pensions of 
the Senate, a report identifying any plan that— 
(1) has failed to make any scheduled payment 
on a loan under this section; 
(2) has negotiated revised terms for repayment 
of such loan (including any installment payments or 
forgiveness of a portion of the loan principal); or 
(3) the Director has determined is no longer 
reasonably expected to be able to— 
(A) pay benefits and the interest on the 
loan; or 
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1211 
(B) accumulate sufficient funds to repay 
the principal when due. 
Such report shall include the details of any such failure, 
revised terms, or determination, as the case may be. 
(i) COORDINATION WITH TAXATION OF UNRELATED 
BUSINESS
INCOME.—Subparagraph 
(A) 
of 
section 
514(c)(6) of the Internal Revenue Code of 1986 is amend-
ed— 
(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 504 of the Rehabilita-
tion for Multiemployer Pensions Act of 
2020.’’. 
SEC. 505. 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 sub-
section: 
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1212 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN-
SION REHABILITATION LOANS.— 
‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL-
ITY.— 
‘‘(A) IN GENERAL.—If any employer par-
ticipating in a plan at the time the plan receives 
a loan under section 504(a) of the Rehabilita-
tion for Multiemployer Pensions Act of 2020 
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 Retire-
ment Income Security Act of 1974— 
‘‘(i) by applying section 4219(c)(1)(D) 
of the Employee Retirement Income Secu-
rity Act of 1974 as if the plan were termi-
nating by the withdrawal of every employer 
from the plan, and 
‘‘(ii) by determining the value of non-
forfeitable 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 sec-
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1213 
tion 4281 of the Employee Retirement In-
come Security Act of 1974 in the case of 
such a mass withdrawal. 
‘‘(B) ANNUITY CONTRACTS AND INVEST-
MENT
PORTFOLIOS
PURCHASED
WITH
LOAN 
FUNDS.—Annuity 
contracts 
purchased 
and 
portfolios implemented under section 504(d)(3) 
of the Rehabilitation for Multiemployer Pen-
sions Act of 2020 shall not be taken into ac-
count as plan assets in determining the with-
drawal liability of any employer under subpara-
graph (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 504(a) of such Act, 
shall be taken into account as unfunded vested 
benefits in determining such withdrawal liabil-
ity. 
‘‘(2) COORDINATION WITH FUNDING REQUIRE-
MENTS.—In the case of a plan which receives a loan 
under section 504(a) of the Rehabilitation for Multi-
employer Pensions Act of 2020— 
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‘‘(A) annuity contracts purchased and 
portfolios implemented under section 504(d)(3) 
of such Act, and the benefits provided to par-
ticipants 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 prin-
cipal under the loan, and any benefits owed in 
excess of those provided under such contracts 
or portfolios, shall be taken into account as li-
abilities 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 IN-
COME SECURITY ACT OF 1974.—Section 305 of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1085) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN-
SION REHABILITATION LOANS.— 
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‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL-
ITY.— 
‘‘(A) IN GENERAL.—If any employer par-
ticipating in a plan at the time the plan receives 
a loan under section 504(a) of the Rehabilita-
tion for Multiemployer Pensions Act of 2020 
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 non-
forfeitable 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 INVEST-
MENT
PORTFOLIOS
PURCHASED
WITH
LOAN 
FUNDS.—Annuity 
contracts 
purchased 
and 
portfolios implemented under section 504(d)(3) 
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of the Rehabilitation for Multiemployer Pen-
sions Act of 2020 shall not be taken into ac-
count 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 504(a) of such Act, 
shall be taken into account as unfunded vested 
benefits in determining such withdrawal liabil-
ity. 
‘‘(2) COORDINATION WITH FUNDING REQUIRE-
MENTS.—In the case of a plan which receives a loan 
under section 504(a) of the Rehabilitation for Multi-
employer Pensions Act of 2020— 
‘‘(A) annuity contracts purchased and 
portfolios implemented under section 504(d)(3) 
of such Act, and the benefits provided to par-
ticipants and beneficiaries under such contracts 
or portfolios, shall not be taken into account in 
determining minimum required contributions 
under section 302, 
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‘‘(B) payments on the interest and prin-
cipal under the loan, and any benefits owed in 
excess of those provided under such contracts 
or portfolios, shall be taken into account as li-
abilities 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. 506. ISSUANCE OF TREASURY BONDS. 
The Secretary of the Treasury shall from time to time 
transfer from the general fund of the Treasury to the Pen-
sion 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 
504 of this Act, including from proceeds from the Sec-
retary’s issuance of obligations under chapter 31 of title 
31, United States Code. 
SEC. 507. REPORTS OF PLANS RECEIVING PENSION REHA-
BILITATION LOANS. 
(a) IN GENERAL.—Subpart E of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE-
HABILITATION LOANS. 
‘‘(a) IN GENERAL.—In the case of a plan receiving 
a loan under section 504(a) of the Rehabilitation for Mul-
tiemployer Pensions Act of 2020, 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 documenta-
tion and actuarial certifications from the plan actuary, as 
required by the Secretary) that contains— 
‘‘(1) the funded percentage (as defined in sec-
tion 432(j)(2)) as of the first day of such plan year, 
and the underlying actuarial value of assets (deter-
mined 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, 
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‘‘(3) the total value of all contributions made by 
employers and employees during the plan year pre-
ceding 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 assump-
tions 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 projec-
tions, 
‘‘(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 as-
sessment of the withdrawal liability paid, the annual 
payment amount, and the number of years remain-
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ing 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 pre-
ceding such plan year, and whether such changes re-
late to the terms of the loan, 
‘‘(12) details regarding any funding improve-
ment plan or rehabilitation plan and updates to such 
plan, 
‘‘(13) the number of participants during the 
plan year preceding such plan year who are active 
participants, the number of participants and bene-
ficiaries in pay status, and the number of terminated 
vested participants and beneficiaries, 
‘‘(14) the amount of any financial assistance re-
ceived under section 4261 of the Employee Retire-
ment 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 re-
cent annual funding notice submitted by the plan 
under section 101(f) of the Employee Retirement In-
come Security Act of 1974, 
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‘‘(16) the information contained on the most re-
cent annual return under section 6058 and actuarial 
report under section 6059 of the plan, and 
‘‘(17) copies of the plan document and amend-
ments, other retirement benefit or ancillary benefit 
plans relating to the plan and contribution obliga-
tions under such plans, a breakdown of administra-
tive expenses of the plan, participant census data 
and distribution of benefits, the most recent actu-
arial valuation report as of the plan year, copies of 
collective bargaining agreements, and financial re-
ports, and such other information as the Secretary, 
in consultation with the Director of the Pension Re-
habilitation Administration, may require. 
‘‘(b) ELECTRONIC
SUBMISSION.—The report re-
quired under subsection (a) shall be submitted electroni-
cally. 
‘‘(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 Pen-
sion 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 pro-
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vide a summary (written in a manner so as to be under-
stood 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 add-
ing at the end the following new item: 
‘‘Sec. 6059A. Reports of plans receiving pension rehabilitation loans.’’. 
SEC. 508. PBGC FINANCIAL ASSISTANCE. 
(a) IN GENERAL.—Section 4261 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1431) 
is amended by adding at the end the following new sub-
section: 
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‘‘(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 during 
the 2-year period beginning on such date, or with re-
spect to which a suspension of benefits has been ap-
proved under section 305(e)(9) as of such date; 
‘‘(B) which, as of such date of enactment or 
during such period, is in critical status (within the 
meaning of section 305(b)(2)), has a modified fund-
ed percentage of less than 40 percent (as defined in 
section 504(a)(1) of the Rehabilitation for Multiem-
ployer Pensions Act of 2020), and has a ratio of ac-
tive to inactive participants which is less than 2 to 
5; or 
‘‘(C) which is insolvent for purposes of section 
418E of the Internal Revenue Code of 1986 as of 
such date of enactment or during such period, if the 
plan became insolvent after December 16, 2014, and 
has not been terminated, 
and which is applying for a loan under section 504(a) of 
the Rehabilitation for Multiemployer Pensions Act of 2020 
may also apply to the corporation for financial assistance 
under this subsection, by jointly submitting such applica-
tions in accordance with section 504(d)(2) of such Act. 
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1224 
The application for financial assistance under this sub-
section 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 be-
ginning on the date of the loan. 
‘‘(2) In reviewing an application under paragraph 
(1), the corporation shall review the determinations and 
demonstrations submitted with the loan application under 
section 504(c) of the Rehabilitation for Multiemployer 
Pensions Act of 2020 and provide guidance regarding such 
determinations and demonstrations prior to approving any 
application for financial assistance under this subsection. 
The corporation may deny any application if any such de-
terminations or demonstrations (or any underlying as-
sumptions) are clearly erroneous, or inconsistent with 
rules issued by the corporation, and the plan and the cor-
poration are unable to reach agreement on such deter-
minations or demonstrations. The corporation shall pre-
scribe any such rules or guidance not later than August 
31, 2020. 
‘‘(3) In the case of a plan described in paragraph 
(1)(A) or (1)(B), the total financial assistance provided 
under this subsection shall be an amount equal to the 
smallest portion of the loan amount with respect to the 
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plan under paragraph (1)(A) or (1)(B)(ii) of section 
504(d) of the Rehabilitation for Multiemployer Pensions 
Act of 2020 (determined without regard to paragraph (2) 
thereof) that, if provided as financial assistance under this 
subsection instead of a loan, would allow the plan to avoid 
the projected insolvency. 
‘‘(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 present value 
of the amount (determined by the plan actuary and sub-
mitted on the application) that, if such amount were paid 
by the corporation in combination with the loan and any 
other assistance being provided to the plan by the corpora-
tion at the time of the application, would enable the plan 
to emerge from insolvency and avoid any other insolvency 
projected under paragraph (1). 
‘‘(5)(A)(i) Except as provided in subparagraph (B), 
if the corporation determines at the time of approval, or 
at the beginning of any plan year beginning thereafter, 
that the plan’s 5-year expenditure projection (determined 
without regard to loan payments described in clause 
(iii)(III)) exceeds the fair market value of the plan’s as-
sets, the corporation shall (subject to the total amount of 
financial assistance approved under this subsection) pro-
vide such assistance in an amount equal to the lesser of— 
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‘‘(I) the amount by which the plan’s 5-year 
expenditure projection exceeds such fair market 
value; or 
‘‘(II) the plan’s expected expenditures for 
the plan year. 
‘‘(ii) For purposes of this subparagraph, the term ‘5- 
year expenditure projection’ means, with respect to any 
plan for a plan year, an amount equal to 500 percent of 
the plan’s expected expenditures for the plan year. 
‘‘(iii) For purposes of this subparagraph, the term 
‘expected expenditures’ means, with respect to any plan 
for a plan year, an amount equal to the sum of— 
‘‘(I) expected benefit payments for the plan 
year; 
‘‘(II) expected administrative expense payments 
for the plan year; plus 
‘‘(III) payments on the loan scheduled during 
the plan year pursuant to the terms of the loan 
under section 504(b) of the Rehabilitation for Multi-
employer Pensions Act of 2020. 
‘‘(iv) For purposes of this subparagraph, in the case 
of any plan year during which a plan is approved for a 
loan under section 504 of such Act, but has not yet re-
ceived the proceeds, such proceeds shall be included in de-
termining the fair market value of the plan’s assets for 
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1227 
the plan year. The preceding sentence shall not apply in 
the case of any plan that for the plan year beginning in 
2015 was certified pursuant to section 305(b)(3) as being 
in critical and declining status, and had more than 
300,000 participants. 
‘‘(B) The financial assistance under this subsection 
shall be provided in a lump sum if the plan sponsor dem-
onstrates in the application, and the corporation deter-
mines, that such a lump sum payment is necessary for 
the plan to avoid the insolvency to which the application 
relates. In the case of a plan described in paragraph 
(1)(C), such lump sum shall be provided not 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 as-
sistance to be repaid before the date on which the loan 
under section 504(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2020 is repaid in full. 
‘‘(7) The corporation may forgo repayment of the fi-
nancial assistance provided under this subsection if nec-
essary to avoid any suspension of the accrued benefits of 
participants.’’. 
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1228 
(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 pro-
vide 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). 
DIVISION 
U—CONSUMER 
PRO-
TECTION 
AND 
TELE-
COMMUNICATIONS 
PROVI-
SIONS 
TITLE I—COVID–19 PRICE 
GOUGING PREVENTION 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘COVID-19 Price 
Gouging Prevention Act’’. 
SEC. 102. PREVENTION OF PRICE GOUGING. 
(a) IN GENERAL.—For the duration of a public 
health emergency declared pursuant to section 319 of the 
Public Health Service Act (42 U.S.C. 247d) as a result 
of confirmed cases of 2019 novel coronavirus (COVID– 
19), including any renewal thereof, it shall be unlawful 
for any person to sell or offer for sale a good or service 
at a price that— 
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(1) is unconscionably excessive; and 
(2) indicates the seller is using the cir-
cumstances related to such public health emergency 
to increase prices unreasonably. 
(b) FACTORS FOR CONSIDERATION.—In determining 
whether a person has violated subsection (a), there shall 
be taken into account, with respect to the price at which 
such person sold or offered for sale the good or service, 
factors that include the following: 
(1) Whether such price grossly exceeds the av-
erage price at which the same or a similar good or 
service was sold or offered for sale by such person— 
(A) during the 90-day period immediately 
preceding January 31, 2020; or 
(B) during the same 90-day period of the 
previous year. 
(2) Whether such price grossly exceeds the av-
erage price at which the same or a similar good or 
service was readily obtainable from other similarly 
situated competing sellers before January 31, 2020. 
(3) Whether such price reasonably reflects addi-
tional costs, not within the control of such person, 
that were paid, incurred, or reasonably anticipated 
by such person, or reasonably reflects the profit-
ability of forgone sales or additional risks taken by 
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such person, to produce, distribute, obtain, or sell 
such good or service under the circumstances. 
(c) ENFORCEMENT.— 
(1) ENFORCEMENT BY FEDERAL TRADE COM-
MISSION.— 
(A) UNFAIR OR DECEPTIVE ACTS OR PRAC-
TICES.—A violation of subsection (a) shall be 
treated as a violation of a regulation under sec-
tion 18(a)(1)(B) of the Federal Trade Commis-
sion Act (15 U.S.C. 57a(a)(1)(B)) regarding 
unfair or deceptive acts or practices. 
(B) POWERS OF COMMISSION.—The Com-
mission shall enforce subsection (a) in the same 
manner, by the same means, and with the same 
jurisdiction, powers, and duties as though all 
applicable terms and provisions of the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) 
were incorporated into and made a part of this 
section. Any person who violates such sub-
section shall be subject to the penalties and en-
titled to the privileges and immunities provided 
in the Federal Trade Commission Act. 
(2) EFFECT ON OTHER LAWS.—Nothing in this 
section shall be construed in any way to limit the 
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authority of the Commission under any other provi-
sion of law. 
(3) ENFORCEMENT BY STATE ATTORNEYS GEN-
ERAL.— 
(A) IN
GENERAL.—If the chief law en-
forcement officer of a State, or an official or 
agency designated by a State, has reason to be-
lieve that any person has violated or is violating 
subsection (a), the attorney general, official, or 
agency of the State, in addition to any author-
ity it may have to bring an action in State 
court under its consumer protection law, may 
bring a civil action in any appropriate United 
States district court or in any other court of 
competent jurisdiction, including a State court, 
to— 
(i) enjoin further such violation by 
such person; 
(ii) enforce compliance with such sub-
section; 
(iii) obtain civil penalties; and 
(iv) obtain damages, restitution, or 
other compensation on behalf of residents 
of the State. 
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(B) NOTICE AND INTERVENTION BY THE 
FTC.—The attorney general of a State shall 
provide prior written notice of any action under 
subparagraph (A) to the Commission and pro-
vide the Commission with a copy of the com-
plaint in the action, except in any case in which 
such prior notice is not feasible, in which case 
the attorney general shall serve such notice im-
mediately upon instituting such action. The 
Commission shall have the right— 
(i) to intervene in the action; 
(ii) upon so intervening, to be heard 
on all matters arising therein; and 
(iii) to file petitions for appeal. 
(C) LIMITATION ON STATE ACTION WHILE 
FEDERAL ACTION IS PENDING.—If the Commis-
sion has instituted a civil action for violation of 
this section, no State attorney general, or offi-
cial or agency of a State, may bring an action 
under this paragraph during the pendency of 
that action against any defendant named in the 
complaint of the Commission for any violation 
of this section alleged in the complaint. 
(D) 
RELATIONSHIP
WITH
STATE-LAW 
CLAIMS.—If the attorney general of a State has 
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authority to bring an action under State law di-
rected at acts or practices that also violate this 
section, the attorney general may assert the 
State-law claim and a claim under this section 
in the same civil action. 
(4) SAVINGS CLAUSE.—Nothing in this section 
shall preempt or otherwise affect any State or local 
law. 
(d) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) GOOD
OR
SERVICE.—The term ‘‘good or 
service’’ means a good or service offered in com-
merce, including— 
(A) food, beverages, water, ice, a chemical, 
or a personal hygiene product; 
(B) any personal protective equipment for 
protection from or prevention of contagious dis-
eases, filtering facepiece respirators, medical 
supplies (including medical testing supplies), 
cleaning supplies, disinfectants, sanitizers; or 
(C) any healthcare service, cleaning serv-
ice, or delivery service. 
(3) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, each 
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commonwealth, territory, or possession of the United 
States, and each federally recognized Indian Tribe. 
TITLE II—E–RATE SUPPORT FOR 
WI-FI HOTSPOTS AND CON-
NECTED DEVICES 
SEC. 201. E–RATE SUPPORT FOR WI-FI HOTSPOTS AND CON-
NECTED DEVICES DURING EMERGENCY PERI-
ODS RELATING TO COVID–19. 
(a) REGULATIONS REQUIRED.—Not later than 7 
days after the date of the enactment of this Act, the Com-
mission shall promulgate regulations providing for the 
provision, during an emergency period described in sub-
section (b) and from amounts made available from the 
Emergency Connectivity Fund established under sub-
section (i)(1), of universal service support under section 
254(h)(1)(B) of the Communications Act of 1934 (47 
U.S.C. 254(h)(1)(B)) to an elementary school, secondary 
school, or library eligible for support under such section, 
as well as a tribal elementary school, tribal secondary 
school, or tribal library designated as eligible to receive 
support under such regulations by an Indian tribe that 
is eligible for support under section 261 of the Library 
Services and Technology Act (20 U.S.C. 9161), for— 
(1) providing Wi-Fi hotspots to— 
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(A) in the case of a school, students and 
staff of such school for use at locations that in-
clude locations other than such school; and 
(B) in the case of a library, patrons of 
such library for use at locations that include lo-
cations other than such library; 
(2) providing connected devices to students and 
staff or patrons (as the case may be) for use as de-
scribed in subparagraph (A) or (B) of paragraph 
(1); and 
(3) providing mobile broadband internet access 
service through such Wi-Fi hotspots or connected 
devices. 
(b) EMERGENCY PERIODS DESCRIBED.—An emer-
gency period described in this subsection is the duration 
of a public health emergency declared pursuant to section 
319 of the Public Health Service Act (42 U.S.C. 247d) 
as a result of COVID–19, including any renewal thereof. 
(c) SERVICE REQUIREMENT FOR CONNECTED DE-
VICES.—If a school or library provides a connected device 
to a student, staff member, or patron using universal serv-
ice support under the regulations required by subsection 
(a) and such connected device is only capable of con-
necting to broadband internet access service through the 
use of Wi-Fi, such school or library shall also provide to 
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such student, staff member, or patron a Wi-Fi hotspot and 
mobile broadband internet access service through such Wi- 
Fi hotspot. 
(d) TREATMENT
OF WI-FI HOTSPOTS
AND CON-
NECTED DEVICES AFTER EMERGENCY PERIOD.—The 
Commission shall provide in the regulations required by 
subsection (a) that, in the case of a school or library that 
purchases Wi-Fi hotspots or connected devices using sup-
port received under such regulations, such school or li-
brary— 
(1) may, after the emergency period with re-
spect to which such support is received, use such 
Wi-Fi hotspots or connected devices for such pur-
poses as such school or library considers appro-
priate, subject to any restrictions provided in such 
regulations (or any successor regulation); and 
(2) may not sell or otherwise transfer in ex-
change for any thing of value such Wi-Fi hotspots 
or connected devices. 
(e) PRIORITIZATION OF SUPPORT.—The Commission 
shall provide in the regulations required by subsection (a) 
that a school or library shall prioritize the provision of 
Wi-Fi hotspots or connected devices and associated mobile 
broadband internet access service for which support is re-
ceived under such regulations to students and staff or pa-
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trons (as the case may be) that the school or library be-
lieves do not otherwise have access to broadband internet 
access service at the residences of such students and staff 
or patrons. 
(f) CERTIFICATION REQUIREMENTS.—The Commis-
sion shall provide in the regulations required by subsection 
(a) that— 
(1) Wi-Fi hotspots and connected devices for 
which support is received under such regulations 
shall be treated as computers for purposes of the 
certification requirements of paragraphs (5) and (6) 
of section 254(h) of the Communications Act of 
1934 (47 U.S.C. 254(h)); and 
(2) notwithstanding the requirements of such 
paragraphs relating to the timing of certifications, 
the certifications required by such paragraphs shall 
be made with respect to such Wi-Fi hotspots and 
connected devices as a condition of receiving such 
support. 
(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect any authority the Com-
mission may have under section 254(h)(1)(B) of the Com-
munications Act of 1934 (47 U.S.C. 254(h)(1)(B)) to 
allow universal service support under such section to be 
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used for the purposes described in subsection (a) other 
than as required by such subsection. 
(h) EXEMPTIONS.— 
(1) NOTICE AND COMMENT RULEMAKING RE-
QUIREMENTS.—Section 553 of title 5, United States 
Code, shall not apply to a regulation promulgated 
under subsection (a) or a rulemaking to promulgate 
such a regulation. 
(2) PAPERWORK
REDUCTION
ACT
REQUIRE-
MENTS.—A collection of information conducted or 
sponsored under the regulations required by sub-
section (a), or under section 254 of the Communica-
tions Act of 1934 (47 U.S.C. 254) in connection 
with universal service support provided under such 
regulations, shall not constitute a collection of infor-
mation for the purposes of subchapter I of chapter 
35 of title 44, United States Code (commonly re-
ferred to as the Paperwork Reduction Act). 
(i) EMERGENCY CONNECTIVITY FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the Emergency Connectivity Fund. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Emer-
gency Connectivity Fund, out of any money in the 
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Treasury 
not 
otherwise 
appropriated, 
$2,000,000,000 for fiscal year 2020, to remain 
available through fiscal year 2021. 
(3) USE OF FUNDS.—Amounts in the Emer-
gency Connectivity Fund shall be available to the 
Commission to provide universal service support 
under the regulations required by subsection (a). 
(4) RELATIONSHIP
TO
UNIVERSAL
SERVICE 
CONTRIBUTIONS.—Universal service support pro-
vided under the regulations required by subsection 
(a) shall be provided from amounts made available 
under paragraph (3) and not from contributions 
under section 254(d) of the Communications Act of 
1934 (47 U.S.C. 254(d)). 
(j) EXCEPTION TO GIFT RESTRICTIONS.—Not later 
than 7 days after the date of the enactment of this Act, 
the Commission shall amend section 54.503(d) of title 47, 
Code of Federal Regulations, so as to provide that such 
section does not apply in the case of a gift or other thing 
of value that is solicited, accepted, offered, or provided 
during an emergency period described in subsection (b) 
for the purpose of responding to needs arising from the 
emergency. 
(k) DEFINITIONS.—In this section: 
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(1) BROADBAND INTERNET ACCESS SERVICE.— 
The term ‘‘broadband internet access service’’ has 
the meaning given such term in section 8.1(b) of 
title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(3) CONNECTED
DEVICE.—The term ‘‘con-
nected device’’ means a laptop computer, tablet com-
puter, or similar device that is capable of connecting 
to mobile broadband internet access service, either 
by receiving such service directly or through the use 
of Wi-Fi. 
(4) WI-FI.—The term ‘‘Wi-Fi’’ means a wire-
less networking protocol based on Institute of Elec-
trical and Electronics Engineers standard 802.11 
(or any successor standard). 
(5) 
WI-FI
HOTSPOT.—The 
term 
‘‘Wi-Fi 
hotspot’’ means a device that is capable of— 
(A) receiving mobile broadband internet 
access service; and 
(B) sharing such service with another de-
vice through the use of Wi-Fi. 
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TITLE 
III—EMERGENCY 
LIFE-
LINE 
BENEFIT 
FOR 
BROADBAND SERVICE 
SEC. 
301. 
EMERGENCY 
LIFELINE 
BENEFIT 
FOR 
BROADBAND SERVICE DURING EMERGENCY 
PERIODS RELATING TO COVID–19. 
(a) PROMULGATION OF REGULATIONS REQUIRED.— 
Not later than 7 days after the date of the enactment of 
this Act, the Commission shall promulgate regulations for 
the provision of an emergency lifeline broadband benefit 
described and in accordance with the requirements of this 
section. 
(b) REQUIREMENTS.—The regulations promulgated 
pursuant to subsection (a) shall establish the following: 
(1) Regardless of whether a household or any 
consumer in the household receives support under 
subpart E of part 54 of title 47, Code of Federal 
Regulations, a household is eligible for the provision 
of Tier I service or Tier II service, supported by the 
emergency lifeline broadband benefit, during an 
emergency period if— 
(A) the household includes at least one 
qualifying low-income consumer who meets the 
qualifications in paragraphs (a) and (b) of sec-
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tion 54.409 of title 47, Code of Federal Regula-
tions, or any successor regulation; or 
(B) the household receives benefits from 
the National School Lunch Program’s free or 
reduced cost lunch program. 
(2) A provider of broadband internet access 
service shall apply to the Commission for the reim-
bursement described in paragraph (6) for each eligi-
ble household that requests the emergency lifeline 
broadband benefit and receives Tier I or Tier II 
service from the provider. 
(3) Within five business days of receiving a re-
quest from a broadband internet service provider, 
the Commission shall determine and issue a decision 
whether it is in the public interest— 
(A) to allow such provider to provide Tier 
I or Tier II service supported by the emergency 
lifeline broadband benefit, and 
(B) to allow the provider to use its own 
verification processes to determine whether a 
household is eligible to receive the emergency 
lifeline broadband benefit according to the eligi-
bility criteria in paragraph (1), if such proc-
esses are reasonable and sufficient to avoid 
waste, fraud, and abuse. 
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(4) The Commission shall adopt reasonable rec-
ordkeeping and retention requirements for recipients 
of reimbursements from the funds made available in 
subsection (f), which requirements shall be in lieu of 
any reporting, record keeping, retention and compli-
ance requirements as set forth in subpart E of part 
54 of title 47, Code of Federal Regulations. 
(5) The emergency period may be extended 
within a State or any portion thereof if the Governor 
of the State provides written, public notice to the 
Commission stipulating that an extension is nec-
essary in furtherance of the recovery related to 
COVID–19. The Commission shall, within 24 hours 
after receiving such notice, post the notice on the 
Commission’s public website. 
(6) The Commission shall reimburse providers 
of broadband internet access service from funds 
made available in subsection (f) in the following 
amounts: 
(A) The broadband internet access service 
provider shall receive $50.00 per month, or an 
amount equal to the monthly charge for service 
and equipment if such charge is less than 
$50.00 per month, for each eligible household 
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that requests the emergency lifeline broadband 
benefit and receives the Tier I service. 
(B) The broadband internet access service 
provider shall receive $30.00 per month, or an 
amount equal to the monthly charge for service 
and equipment if such charge is less than 
$30.00 per month, for each eligible household 
that requests the emergency lifeline broadband 
benefit and receives Tier II service. 
(7) To receive a reimbursement under para-
graph (6), a broadband internet access service pro-
vider shall certify to the Commission— 
(A) the number of eligible households that 
requested the emergency lifeline broadband ben-
efit and received Tier I service— 
(i) monthly for the duration of the 
emergency period; or 
(ii) for each month of the emergency 
period, collectively, after the expiration of 
the emergency period under paragraph (5); 
(B) the number of eligible households that 
requested the emergency lifeline broadband ben-
efit and received Tier II service— 
(i) monthly for the duration of the 
emergency period; or 
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(ii) for each month of the emergency 
period, collectively, after the expiration of 
the emergency period under paragraph (5); 
(C) that the reimbursement sought for pro-
viding Tier I service or Tier II service to an eli-
gible household did not exceed the provider’s 
rate for that offering, or similar offerings, for 
households that are not eligible households sub-
scribing to the same or substantially similar 
service; 
(D) that eligible households for which the 
provider is seeking reimbursement for providing 
Tier I or Tier II service using the emergency 
lifeline broadband benefit— 
(i) were not charged for the Tier I 
service or Tier II service; and 
(ii) were not disqualified from receiv-
ing the emergency lifeline broadband serv-
ice based on past or present arrearages; 
and 
(E) that the eligibility of eligible house-
holds is verified in accordance with the require-
ments adopted by the Commission pursuant to 
paragraph (3). 
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(c) ELIGIBLE PROVIDERS.—The Commission may 
provide a reimbursement to a broadband internet access 
service provider under this section without requiring such 
provider to be designated as an eligible telecommuni-
cations carrier under section 214(e) of the Communica-
tions Act of 1934 (47 U.S.C. 214(e)) and notwithstanding 
section 254(e) of the Communications Act of 1934 (47 
U.S.C. 254(e)). 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall affect the collection, distribution, or administra-
tion of the Lifeline Assistance Program governed by the 
rules set forth in subpart E of part 54 of title 47, Code 
of Federal Regulations. 
(e) EXEMPTIONS.— 
(1) NOTICE AND COMMENT RULEMAKING RE-
QUIREMENTS.—Section 553 of title 5, United States 
Code, shall not apply to a regulation promulgated 
under subsection (a) or a rulemaking to promulgate 
such a regulation. 
(2) PAPERWORK
REDUCTION
ACT
REQUIRE-
MENTS.—A collection of information conducted or 
sponsored under the regulations required by sub-
section (a), or under section 254 of the Communica-
tions Act of 1934 (47 U.S.C. 254) in connection 
with universal service support provided under such 
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regulations, shall not constitute a collection of infor-
mation for the purposes of subchapter I of chapter 
35 of title 44, United States Code (commonly re-
ferred to as the Paperwork Reduction Act). 
(f) 
EMERGENCY
BROADBAND
CONNECTIVITY 
FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the Emergency Broadband Connectivity 
Fund. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Emer-
gency Broadband Connectivity Fund, out of any 
money in the Treasury not otherwise appropriated, 
$1,000,000,000 for fiscal year 2020, to remain 
available through fiscal year 2021. 
(3) USE OF FUNDS.—Amounts in the Emer-
gency Broadband Connectivity Fund shall be avail-
able to the Commission to provide reimbursements 
for Tier I service or Tier II service provided to eligi-
ble households under the regulations required pursu-
ant to subsection (a). 
(4) RELATIONSHIP
TO
UNIVERSAL
SERVICE 
CONTRIBUTIONS.—Reimbursements provided under 
the regulations required by subsection (a) shall be 
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provided from amounts made available under para-
graph (3) and not from contributions under section 
254(d) of the Communications Act of 1934 (47 
U.S.C. 254(d)). 
(g) DEFINITIONS.—In this section: 
(1) BROADBAND INTERNET ACCESS SERVICE.— 
The term ‘‘broadband internet access service’’ has 
the meaning given such term in section 8.1(b) of 
title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(3) ELIGIBLE HOUSEHOLD.—The term ‘‘eligible 
household’’ means a household that meets the re-
quirements described in subsection (b)(1). 
(4) EMERGENCY
PERIOD.—The term ‘‘emer-
gency period’’ means the duration of a public health 
emergency declared pursuant to section 319 of the 
Public Health Service Act (42 U.S.C. 247d) as a re-
sult of COVID–19, including any renewal thereof. 
(5) TIER I SERVICE.—The term ‘‘Tier I serv-
ice’’ means broadband internet access service that, 
at a minimum, provides a download speed of 100 
megabits per second, an upload speed of 10 mega-
bits per second, and latency that is sufficiently low 
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to allow real-time, interactive applications, with no 
data caps or additional fees for the provision of such 
service, except taxes and other governmental fees. 
(6) TIER II SERVICE.—The term ‘‘Tier II serv-
ice’’ means broadband internet access service that, 
at a minimum, provides a download speed of 25 
megabits per second, an upload speed of 3 megabits 
per second, and latency that is sufficiently low to 
allow real-time, interactive applications, with no data 
caps or additional fees for the provision of such serv-
ice, except taxes and other governmental fees. 
TITLE IV—CONTINUED 
CONNECTIVITY 
SEC. 401. CONTINUED CONNECTIVITY DURING EMERGENCY 
PERIODS RELATING TO COVID–19. 
Title VII of the Communications Act of 1934 (47 
U.S.C. 601 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 723. CONTINUED CONNECTIVITY DURING EMER-
GENCY PERIODS RELATING TO COVID–19. 
‘‘(a) IN GENERAL.—During an emergency period de-
scribed in subsection (b), it shall be unlawful— 
‘‘(1) for a provider of advanced telecommuni-
cations service or voice service to— 
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‘‘(A) terminate, reduce, or change such 
service provided to any individual customer or 
small business because of the inability of the in-
dividual customer or small business to pay for 
such service if the individual customer or small 
business certifies to such provider that such in-
ability to pay is a result of disruptions caused 
by the public health emergency to which such 
emergency period relates; or 
‘‘(B) impose late fees on any individual 
customer or small business because of the in-
ability of the individual customer or small busi-
ness to pay for such service if the individual 
customer or small business certifies to such pro-
vider that such inability to pay is a result of 
disruptions caused by the public health emer-
gency to which such emergency period relates; 
‘‘(2) for a provider of advanced telecommuni-
cations service to, during such emergency period— 
‘‘(A) employ a limit on the amount of data 
allotted to an individual customer or small busi-
ness during such emergency period, except that 
such provider may engage in reasonable net-
work management; or 
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‘‘(B) charge an individual customer or 
small business an additional fee for exceeding 
the limit on the data allotted to an individual 
customer or small business; or 
‘‘(3) for a provider of advanced telecommuni-
cations service that had functioning Wi-Fi hotspots 
available to subscribers in public places on the day 
before the beginning of such emergency period to 
fail to make service provided by such Wi-Fi hotspots 
available to the public at no cost during such emer-
gency period. 
‘‘(b) WAIVER.—Upon a petition by a provider ad-
vanced telecommunications service or voice service, the 
provisions in subsection (a) may be suspended or waived 
by the Commission at any time, in whole or in part, for 
good cause shown. 
‘‘(c) EMERGENCY PERIODS DESCRIBED.—An emer-
gency period described in this subsection is any portion 
beginning on or after the date of the enactment of this 
section of the duration of a public health emergency de-
clared pursuant to section 319 of the Public Health Serv-
ice Act (42 U.S.C. 247d) as a result of COVID–19, includ-
ing any renewal thereof. 
‘‘(d) DEFINITIONS.—In this section: 
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‘‘(1) ADVANCED TELECOMMUNICATIONS SERV-
ICE.—The term ‘advanced telecommunications serv-
ice’ means a service that provides advanced tele-
communications capability (as defined in section 706 
of the Telecommunications Act of 1996 (47 U.S.C. 
1302)). 
‘‘(2) BROADBAND
INTERNET
ACCESS
SERV-
ICE.—The term ‘broadband internet access service’ 
has the meaning given such term in section 8.1(b) 
of title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
‘‘(3) INDIVIDUAL CUSTOMER.—The term ‘indi-
vidual customer’ means an individual who contracts 
with a mass-market retail provider of advanced tele-
communications service or voice service to provide 
service to such individual. 
‘‘(4) REASONABLE NETWORK MANAGEMENT.— 
The term ‘reasonable network management’— 
‘‘(A) means the use of a practice that— 
‘‘(i) has a primarily technical network 
management justification; and 
‘‘(ii) is primarily used for and tailored 
to achieving a legitimate network manage-
ment purpose, taking into account the par-
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ticular network architecture and tech-
nology of the service; and 
‘‘(B) does not include other business prac-
tices. 
‘‘(5) SMALL BUSINESS.—The term ‘small busi-
ness’ has the meaning given such term under section 
601(3) of title 5, United States Code. 
‘‘(6) VOICE SERVICE.—The term ‘voice service’ 
has the meaning given such term under section 
227(e)(8) of the Communications Act of 1934 (47 
U.S.C. 227(e)(8)). 
‘‘(7) WI-FI.—The term ‘Wi-Fi’ means a wire-
less networking protocol based on Institute of Elec-
trical and Electronics Engineers standard 802.11 
(or any successor standard). 
‘‘(8) 
WI-FI
HOTSPOT.—The 
term 
‘Wi-Fi 
hotspot’ means a device that is capable of— 
‘‘(A) receiving mobile broadband internet 
access service; and 
‘‘(B) sharing such service with another de-
vice through the use of Wi-Fi.’’. 
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TITLE V—DON’T BREAK UP THE 
T–BAND 
SEC. 501. REPEAL OF REQUIREMENT TO REALLOCATE AND 
AUCTION T–BAND SPECTRUM. 
(a) REPEAL.—Section 6103 of the Middle Class Tax 
Relief and Job Creation Act of 2012 (47 U.S.C. 1413) 
is repealed. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by striking the 
item relating to section 6103. 
DIVISION V—GROW ACT 
SEC. 101. SHORT TITLE. 
This division may be cited as the ‘‘Giving Retirement 
Options to Workers Act of 2020’’ or the ‘‘GROW Act’’. 
SEC. 102. COMPOSITE PLANS. 
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Title I of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1001 et seq.) is amended by adding at the end the 
following: 
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‘‘PART 8—COMPOSITE PLANS AND LEGACY 
PLANS 
‘‘SEC. 801. COMPOSITE PLAN DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this Act, the 
term ‘composite plan’ means a pension plan— 
‘‘(1) which is a multiemployer plan that is nei-
ther a defined benefit plan nor a defined contribu-
tion plan; 
‘‘(2) the terms of which provide that the plan 
is a composite plan for purposes of this title with re-
spect to which not more than one multiemployer de-
fined benefit plan is treated as a legacy plan within 
the meaning of section 805, unless there is more 
than one legacy plan following a merger of composite 
plans under section 806; 
‘‘(3) which provides systematically for the pay-
ment of benefits— 
‘‘(A) objectively calculated pursuant to a 
formula enumerated in the plan document with 
respect to plan participants after retirement, 
for life; and 
‘‘(B) in the form of life annuities, except 
for benefits which under section 203(e) may be 
immediately distributed without the consent of 
the participant; 
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‘‘(4) for which the plan contributions for the 
first plan year are at least 120 percent of the nor-
mal cost for the plan year; 
‘‘(5) which requires— 
‘‘(A) an annual valuation of the liability of 
the plan as of a date within the plan year to 
which the valuation refers or within one month 
prior to the beginning of such year; 
‘‘(B) an annual actuarial determination of 
the plan’s current funded ratio and projected 
funded ratio under section 802(a); 
‘‘(C) corrective action through a realign-
ment program pursuant to section 803 when-
ever the plan’s projected funded ratio is below 
120 percent for the plan year; and 
‘‘(D) an annual notification to each partici-
pant describing the participant’s benefits under 
the plan and explaining that such benefits may 
be subject to reduction under a realignment 
program pursuant to section 803 based on the 
plan’s funded status in future plan years; and 
‘‘(6) the board of trustees of which includes at 
least one retiree or beneficiary in pay status during 
each plan year following the first plan year in which 
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at least 5 percent of the participants in the plan are 
retirees or beneficiaries in pay status. 
‘‘(b) TRANSITION FROM
A MULTIEMPLOYER DE-
FINED BENEFIT PLAN.— 
‘‘(1) IN GENERAL.—The plan sponsor of a de-
fined benefit plan that is a multiemployer plan may, 
subject to paragraph (2), amend the plan to incor-
porate the features of a composite plan as a compo-
nent of the multiemployer plan separate from the 
defined benefit plan component, except in the case of 
a defined benefit plan for which the plan actuary has 
certified under section 305(b)(3) that the plan is or 
will be in critical status for the plan year in which 
such amendment would become effective or for any 
of the succeeding 5 plan years. 
‘‘(2) REQUIREMENTS.—Any amendment pursu-
ant to paragraph (1) to incorporate the features of 
a composite plan as a component of a multiemployer 
plan shall— 
‘‘(A) apply with respect to all collective 
bargaining agreements providing for contribu-
tions to the multiemployer plan on or after the 
effective date of the amendment; 
‘‘(B) apply with respect to all participants 
in the multiemployer plan for whom contribu-
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tions are made to the multiemployer plan on or 
after the effective date of the amendment; 
‘‘(C) specify that the effective date of the 
amendment is— 
‘‘(i) the first day of a specified plan 
year following the date of the adoption of 
the amendment, except that the plan spon-
sor may alternatively provide for a sepa-
rate effective date with respect to each col-
lective bargaining agreement under which 
contributions to the multiemployer plan 
are required, which shall occur on the first 
day of the first plan year beginning after 
the termination, or if earlier, the re-open-
ing, of each such agreement, or such ear-
lier date as the parties to the agreement 
and the plan sponsor of the multiemployer 
plan shall agree to; and 
‘‘(ii) not later than the first day of the 
fifth plan year beginning on or after the 
date of the adoption of the amendment; 
‘‘(D) specify that, as of the amendment’s 
effective date, no further benefits shall accrue 
under the defined benefit component of the 
multiemployer plan; and 
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‘‘(E) specify that, as of the amendment’s 
effective date, the plan sponsor of the multiem-
ployer plan shall be the plan sponsor of both 
the composite plan component and the defined 
benefit plan component of the plan. 
‘‘(3) SPECIAL RULES.—If a multiemployer plan 
is amended pursuant to paragraph (1)— 
‘‘(A) the requirements of this title and title 
IV shall be applied to the composite plan com-
ponent and the defined benefit plan component 
of the multiemployer plan as if each such com-
ponent were maintained as a separate plan; and 
‘‘(B) the assets of the composite plan com-
ponent and the defined benefit plan component 
of the plan shall be held in a single trust form-
ing part of the plan under which the trust in-
strument expressly provides— 
‘‘(i) for separate accounts (and appro-
priate records) to be maintained to reflect 
the interest which each of the plan compo-
nents has in the trust, including separate 
accounting for additions to the trust for 
the benefit of each plan component, dis-
bursements made from each plan compo-
nent’s account in the trust, investment ex-
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perience of the trust allocable to that ac-
count, and administrative expenses (wheth-
er direct expenses or shared expenses allo-
cated proportionally), and permits, but 
does not require, the pooling of some or all 
of the assets of the two plan components 
for investment purposes; and 
‘‘(ii) that the assets of each of the two 
plan components shall be held, invested, 
reinvested, managed, administered and dis-
tributed for the exclusive benefit of the 
participants and beneficiaries of each such 
plan component, and in no event shall the 
assets of one of the plan components be 
available to pay benefits due under the 
other plan component. 
‘‘(4) NOT
A
TERMINATION
EVENT.—Notwith-
standing section 4041A, an amendment pursuant to 
paragraph (1) to incorporate the features of a com-
posite plan as a component of a multiemployer plan 
does not constitute termination of the multiemployer 
plan. 
‘‘(5) NOTICE TO THE SECRETARY.— 
‘‘(A) NOTICE.—The plan sponsor of a 
composite plan shall provide notice to the Sec-
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retary of the intent to establish the composite 
plan (or, in the case of a composite plan incor-
porated as a component of a multiemployer 
plan as described in paragraph (1), the intent 
to amend the multiemployer plan to incorporate 
such composite plan) at least 30 days prior to 
the effective date of such establishment or 
amendment. 
‘‘(B) CERTIFICATION.—In the case of a 
composite plan incorporated as a component of 
a multiemployer plan as described in paragraph 
(1), such notice shall include a certification by 
the plan actuary under section 305(b)(3) that 
the effective date of the amendment occurs in 
a plan year for which the multiemployer plan is 
not in critical status for that plan year and any 
of the succeeding 5 plan years. 
‘‘(6) REFERENCES TO COMPOSITE PLAN COM-
PONENT.—As used in this part, the term ‘composite 
plan’ includes a composite plan component added to 
a defined benefit plan pursuant to paragraph (1). 
‘‘(7) RULE
OF
CONSTRUCTION.—Paragraph 
(2)(A) shall not be construed as preventing the plan 
sponsor of a multiemployer plan from adopting an 
amendment pursuant to paragraph (1) because some 
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collective bargaining agreements are amended to 
cease any covered employer’s obligation to contribute 
to the multiemployer plan before or after the plan 
amendment is effective. Paragraph (2)(B) shall not 
be construed as preventing the plan sponsor of a 
multiemployer plan from adopting an amendment 
pursuant to paragraph (1) because some partici-
pants cease to have contributions made to the multi-
employer plan on their behalf before or after the 
plan amendment is effective. 
‘‘(c) COORDINATION WITH FUNDING RULES.—Ex-
cept as otherwise provided in this title, sections 302, 304, 
and 305 shall not apply to a composite plan. 
‘‘(d) TREATMENT OF A COMPOSITE PLAN.—For pur-
poses of this Act (other than sections 302 and 4245), a 
composite plan shall be treated as if it were a defined ben-
efit plan unless a different treatment is provided for under 
applicable law. 
‘‘SEC. 802. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS. 
‘‘(a) CERTIFICATION OF FUNDED RATIOS.— 
‘‘(1) IN
GENERAL.—Not later than the one- 
hundred twentieth day of each plan year of a com-
posite plan, the plan actuary of the composite plan 
shall certify to the Secretary, the Secretary of the 
Treasury, and the plan sponsor the plan’s current 
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funded ratio and projected funded ratio for the plan 
year. 
‘‘(2) DETERMINATION
OF
CURRENT
FUNDED 
RATIO AND PROJECTED FUNDED RATIO.—For pur-
poses of this section: 
‘‘(A) CURRENT FUNDED RATIO.—The cur-
rent funded ratio is the ratio (expressed as a 
percentage) of— 
‘‘(i) the value of the plan’s assets as 
of the first day of the plan year; to 
‘‘(ii) the plan actuary’s best estimate 
of the present value of the plan liabilities 
as of the first day of the plan year. 
‘‘(B) PROJECTED
FUNDED
RATIO.—The 
projected funded ratio is the current funded 
ratio projected to the first day of the fifteenth 
plan year following the plan year for which the 
determination is being made. 
‘‘(3) CONSIDERATION OF CONTRIBUTION RATE 
INCREASES.—For purposes of projections under this 
subsection, the plan sponsor may anticipate con-
tribution rate increases beyond the term of the cur-
rent collective bargaining agreement and any agreed- 
to supplements, up to a maximum of 2.5 percent per 
year, compounded annually, unless it would be un-
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reasonable under the circumstances to assume that 
contributions would increase by that amount. 
‘‘(b) ACTUARIAL ASSUMPTIONS
AND METHODS.— 
For purposes of this part: 
‘‘(1) IN GENERAL.—All costs, liabilities, rates 
of interest and other factors under the plan shall be 
determined for a plan year on the basis of actuarial 
assumptions and methods— 
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations); 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan; and 
‘‘(C) with respect to which any change 
from the actuarial assumptions and methods 
used in the previous plan year shall be certified 
by the plan actuary and the actuarial rationale 
for such change provided in the annual report 
required by section 103. 
‘‘(2) FAIR MARKET VALUE OF ASSETS.—The 
value of the plan’s assets shall be taken into account 
on the basis of their fair market value. 
‘‘(3) DETERMINATION OF NORMAL COST AND 
PLAN LIABILITIES.—A plan’s normal cost and liabil-
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ities shall be based on the most recent actuarial 
valuation required under section 801(a)(5)(A) and 
the unit credit funding method. 
‘‘(4) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—Any contributions for a plan year 
made by an employer after the last day of such plan 
year, but not later than two and one-half months 
after such day, shall be deemed to have been made 
on such last day. For purposes of this paragraph, 
such two and one-half month period may be ex-
tended for not more than six months under regula-
tions prescribed by the Secretary of the Treasury. 
‘‘(5) ADDITIONAL ACTUARIAL ASSUMPTIONS.— 
Except where otherwise provided in this part, the 
provisions of section 305(b)(3)(B) shall apply to any 
determination or projection under this part. 
‘‘SEC. 803. REALIGNMENT PROGRAM. 
‘‘(a) REALIGNMENT PROGRAM.— 
‘‘(1) ADOPTION.—In any case in which the plan 
actuary certifies under section 802(a) that the plan’s 
projected funded ratio is below 120 percent for the 
plan year, the plan sponsor shall adopt a realign-
ment program under paragraph (2) not later than 
210 days after the due date of the certification re-
quired under such section 802(a). The plan sponsor 
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shall adopt an updated realignment program for 
each succeeding plan year for which a certification 
described in the preceding sentence is made. 
‘‘(2) CONTENT OF REALIGNMENT PROGRAM.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram adopted under this paragraph is a written 
program which consists of all reasonable meas-
ures, including options or a range of options to 
be undertaken by the plan sponsor or proposed 
to the bargaining parties, formulated, based on 
reasonably anticipated experience and reason-
able actuarial assumptions, to enable the plan 
to achieve a projected funded ratio of at least 
120 percent for the following plan year. 
‘‘(B) INITIAL PROGRAM ELEMENTS.—Rea-
sonable measures under a realignment program 
described in subparagraph (A) may include any 
of the following: 
‘‘(i) Proposed contribution increases. 
‘‘(ii) A reduction in the rate of future 
benefit accruals, so long as the resulting 
rate is not less than 1 percent of the con-
tributions on which benefits are based as 
of the start of the plan year (or the equiva-
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lent standard accrual rate as described in 
section 305(e)(6)). 
‘‘(iii) A modification or elimination of 
adjustable benefits of participants that are 
not in pay status before the date of the no-
tice required under subsection (b)(1). 
‘‘(iv) Any other lawfully available 
measures not specifically described in this 
subparagraph or subparagraph (C) or (D) 
that the plan sponsor determines are rea-
sonable. 
‘‘(C) ADDITIONAL PROGRAM ELEMENTS.— 
If the plan sponsor has determined that all rea-
sonable measures available under subparagraph 
(B) will not enable the plan to achieve a pro-
jected funded ratio of at least 120 percent for 
the following plan year, such reasonable meas-
ures may also include— 
‘‘(i) a reduction of accrued benefits 
that are not in pay status by the date of 
the 
notice 
required 
under 
subsection 
(b)(1); or 
‘‘(ii) a reduction of any benefits of 
participants that are in pay status before 
the date of the notice required under sub-
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section (b)(1) other than core benefits as 
defined in paragraph (4). 
‘‘(D) ADDITIONAL
REDUCTIONS.—In the 
case of a composite plan for which the plan 
sponsor has determined that all reasonable 
measures available under subparagraphs (B) 
and (C) will not enable the plan to achieve a 
projected funded ratio of at least 120 percent 
for the following plan year, such reasonable 
measures may also include— 
‘‘(i) a further reduction in the rate of 
future benefit accruals without regard to 
the limitation applicable under subpara-
graph (B)(ii); or 
‘‘(ii) a reduction of core benefits, 
provided that such reductions shall be equitably 
distributed across the participant and bene-
ficiary population, taking into account factors, 
with respect to participants and beneficiaries 
and their benefits, that may include one or 
more of the factors listed in subclauses (I) 
through (X) of section 305(e)(9)(D)(vi), to the 
extent necessary to enable the plan to achieve 
a projected funded ratio of at least 120 percent 
for the following plan year, or at the election of 
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the plan sponsor, a projected funded ratio of at 
least 100 percent for the following plan year 
and a current funded ratio of at least 90 per-
cent. 
‘‘(3) ADJUSTABLE
BENEFIT
DEFINED.—For 
purposes of this part, the term ‘adjustable benefit’ 
means— 
‘‘(A) benefits, rights, and features under 
the plan, including post-retirement death bene-
fits, 60-month guarantees, disability benefits 
not yet in pay status, and similar benefits; 
‘‘(B) any early retirement benefit or retire-
ment-type subsidy (within the meaning of sec-
tion 204(g)(2)(A)) and any benefit payment op-
tion (other than the qualified joint and survivor 
annuity); and 
‘‘(C) benefit increases that were adopted 
(or, if later, took effect) less than 60 months 
before the first day such realignment program 
took effect. 
‘‘(4) CORE BENEFIT DEFINED.—For purposes 
of this part, the term ‘core benefit’ means a partici-
pant’s accrued benefit payable in the normal form of 
an annuity commencing at normal retirement age, 
determined without regard to— 
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‘‘(A) any early retirement benefits, retire-
ment-type subsidies, or other benefits, rights, or 
features that may be associated with that ben-
efit; and 
‘‘(B) any cost-of-living adjustments or ben-
efit increases effective after the date of retire-
ment. 
‘‘(5) COORDINATION WITH CONTRIBUTION IN-
CREASES.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram may provide that some or all of the ben-
efit modifications described in the program will 
only take effect if the bargaining parties fail to 
agree to specified levels of increases in contribu-
tions to the plan, effective as of specified dates. 
‘‘(B) INDEPENDENT
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that are inde-
pendent of potential contribution increases, 
such changes shall take effect not later than 
180 days after the first day of the first plan 
year that begins following the adoption of the 
realignment program. 
‘‘(C) CONDITIONAL
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
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changes to the benefit formula that take effect 
only if the bargaining parties fail to agree to 
contribution increases, such changes shall take 
effect not later than the first day of the first 
plan year beginning after the third anniversary 
of the date of adoption of the realignment pro-
gram. 
‘‘(D) REVOCATION OF CERTAIN BENEFIT 
MODIFICATIONS.—Benefit 
modifications 
de-
scribed in subparagraph (C) may be revoked, in 
whole or in part, and retroactively or prospec-
tively, when contributions to the plan are in-
creased, as specified in the realignment pro-
gram, including any amendments thereto. The 
preceding sentence shall not apply unless the 
contribution increases are to be effective not 
later than the fifth anniversary of the first day 
of the first plan year that begins after the 
adoption of the realignment program. 
‘‘(b) NOTICE.— 
‘‘(1) IN GENERAL.—In any case in which it is 
certified under section 802(a) that the projected 
funded ratio is less than 120 percent, the plan spon-
sor shall, not later than 30 days after the date of 
the certification, provide notification of the current 
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and projected funded ratios to the participants and 
beneficiaries, the bargaining parties, and the Sec-
retary. Such notice shall include— 
‘‘(A) an explanation that contribution rate 
increases or benefit reductions may be nec-
essary; 
‘‘(B) a description of the types of benefits 
that might be reduced; and 
‘‘(C) an estimate of the contribution in-
creases and benefit reductions that may be nec-
essary to achieve a projected funded ratio of 
120 percent. 
‘‘(2) NOTICE OF BENEFIT MODIFICATIONS.— 
‘‘(A) IN GENERAL.—No modifications may 
be made that reduce the rate of future benefit 
accrual or that reduce core benefits or adjust-
able benefits unless notice of such reduction has 
been given at least 180 days before the general 
effective date of such reduction for all partici-
pants and beneficiaries to— 
‘‘(i) plan participants and bene-
ficiaries; 
‘‘(ii) each employer who has an obliga-
tion to contribute to the composite plan; 
and 
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‘‘(iii) 
each 
employee 
organization 
which, for purposes of collective bar-
gaining, represents plan participants em-
ployed by such employers. 
‘‘(B) CONTENT
OF
NOTICE.—The notice 
under subparagraph (A) shall contain— 
‘‘(i) sufficient information to enable 
participants and beneficiaries to under-
stand the effect of any reduction on their 
benefits, including an illustration of any 
affected benefit or subsidy, on an annual 
or monthly basis that a participant or ben-
eficiary would otherwise have been eligible 
for as of the general effective date de-
scribed in subparagraph (A); and 
‘‘(ii) information as to the rights and 
remedies of plan participants and bene-
ficiaries as well as how to contact the De-
partment of Labor for further information 
and assistance, where appropriate. 
‘‘(C) FORM
AND
MANNER.—Any notice 
under subparagraph (A)— 
‘‘(i) shall be provided in a form and 
manner prescribed in regulations of the 
Secretary of Labor; 
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‘‘(ii) shall be written in a manner so 
as to be understood by the average plan 
participant. 
‘‘(3) MODEL NOTICES.—The Secretary shall— 
‘‘(A) prescribe model notices that the plan 
sponsor of a composite plan may use to satisfy 
the notice requirements under this subsection; 
and 
‘‘(B) by regulation enumerate any details 
related to the elements listed in paragraph (1) 
that any notice under this subsection must in-
clude. 
‘‘(4) DELIVERY
METHOD.—Any notice under 
this part shall be provided in writing and may also 
be provided in electronic form to the extent that the 
form is reasonably accessible to persons to whom the 
notice is provided. 
‘‘SEC. 804. LIMITATION ON INCREASING BENEFITS. 
‘‘(a) LEVEL OF CURRENT FUNDED RATIOS.—Except 
as provided in subsections (c), (d), and (e), no plan 
amendment increasing benefits or establishing new bene-
fits under a composite plan may be adopted for a plan 
year unless— 
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‘‘(1) the plan’s current funded ratio is at least 
110 percent (without regard to the benefit increase 
or new benefits); 
‘‘(2) taking the benefit increase or new benefits 
into account, the current funded ratio is at least 100 
percent and the projected funded ratio for the cur-
rent plan year is at least 120 percent; 
‘‘(3) in any case in which, after taking the ben-
efit increase or new benefits into account, the cur-
rent funded ratio is less than 140 percent and the 
projected funded ratio is less than 140 percent, the 
benefit increase or new benefits are projected by the 
plan actuary to increase the present value of the 
plan’s liabilities for the plan year by not more than 
3 percent; and 
‘‘(4) expected contributions for the current plan 
year are at least 120 percent of normal cost for the 
plan year, determined using the unit credit funding 
method and treating the benefit increase or new ben-
efits as in effect for the entire plan year. 
‘‘(b) ADDITIONAL REQUIREMENTS WHERE CORE 
BENEFITS REDUCED.—If a plan has been amended to re-
duce core benefits pursuant to a realignment program 
under section 803(a)(2)(D), such plan may not be subse-
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quently amended to increase core benefits unless the 
amendment— 
‘‘(1) increases the level of future benefit pay-
ments only; and 
‘‘(2) provides for an equitable distribution of 
benefit increases across the participant and bene-
ficiary population, taking into account the extent to 
which the benefits of participants were previously re-
duced pursuant to such realignment program. 
‘‘(c) EXCEPTION TO COMPLY WITH APPLICABLE 
LAW.—Subsection (a) shall not apply in connection with 
a plan amendment if the amendment is required as a con-
dition of qualification under part I of subchapter D of 
chapter 1 of the Internal Revenue Code of 1986 or to com-
ply with other applicable law. 
‘‘(d) EXCEPTION WHERE MAXIMUM DEDUCTIBLE 
LIMIT APPLIES.—Subsection (a) shall not apply in con-
nection with a plan amendment if and to the extent that 
contributions to the composite plan would not be deduct-
ible for the plan year under section 404(a)(1)(E) of the 
Internal Revenue Code of 1986 if the plan amendment is 
not adopted. 
‘‘(e) EXCEPTION FOR CERTAIN BENEFIT MODIFICA-
TIONS.—Subsection (a) shall not apply in connection with 
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a plan amendment under section 803(a)(5)(C), regarding 
conditional benefit modifications. 
‘‘(f) TREATMENT OF PLAN AMENDMENTS.—For pur-
poses of this section— 
‘‘(1) if two or more plan amendments increas-
ing benefits or establishing new benefits are adopted 
in a plan year, such amendments shall be treated as 
a single amendment adopted on the last day of the 
plan year; 
‘‘(2) all benefit increases and new benefits 
adopted in a single amendment are treated as a sin-
gle benefit increase, irrespective of whether the in-
creases and new benefits take effect in more than 
one plan year; and 
‘‘(3) increases in contributions or decreases in 
plan liabilities which are scheduled to take effect in 
future plan years may be taken into account in con-
nection with a plan amendment if they have been 
agreed to in writing or otherwise formalized by the 
date the plan amendment is adopted. 
‘‘SEC. 805. COMPOSITE PLAN RESTRICTIONS TO PRESERVE 
LEGACY PLAN FUNDING. 
‘‘(a) TREATMENT AS A LEGACY PLAN.— 
‘‘(1) IN GENERAL.—For purposes of this part 
and parts 2 and 3, a defined benefit plan shall be 
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treated as a legacy plan with respect to the com-
posite plan under which the employees who were eli-
gible to accrue a benefit under the defined benefit 
plan become eligible to accrue a benefit under such 
composite plan. 
‘‘(2) COMPONENT
PLANS.—In any case in 
which a defined benefit plan is amended to add a 
composite plan component pursuant to section 
801(b), paragraph (1) shall be applied by sub-
stituting ‘defined benefit component’ for ‘defined 
benefit plan’ and ‘composite plan component’ for 
‘composite plan’. 
‘‘(3) ELIGIBLE TO ACCRUE A BENEFIT.—For 
purposes of paragraph (1), an employee is consid-
ered eligible to accrue a benefit under a composite 
plan as of the first day in which the employee com-
pletes an hour of service under a collective bar-
gaining agreement that provides for contributions to 
and accruals under the composite plan in lieu of ac-
cruals under the legacy plan. 
‘‘(4) COLLECTIVE BARGAINING AGREEMENT.— 
As used in this part, the term ‘collective bargaining 
agreement’ includes any agreement under which an 
employer has an obligation to contribute to a plan. 
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‘‘(5) OTHER TERMS.—Any term used in this 
part which is not defined in this part and which is 
also used in section 305 shall have the same mean-
ing provided such term in such section. 
‘‘(b) RESTRICTIONS ON ACCEPTANCE BY COMPOSITE 
PLAN OF AGREEMENTS AND CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
posite plan shall not accept or recognize a collective 
bargaining agreement (or any modification to such 
agreement), and no contributions may be accepted 
and no benefits may be accrued or otherwise earned 
under the agreement— 
‘‘(A) in any case in which the plan actuary 
of any defined benefit plan that would be treat-
ed as a legacy plan with respect to such com-
posite 
plan 
has 
certified 
under 
section 
305(b)(3) that such defined benefit plan is or 
will be in critical status for the plan year in 
which such agreement would take effect or for 
any of the succeeding 5 plan years; and 
‘‘(B) unless the agreement requires each 
employer who is a party to such agreement, in-
cluding employers whose employees are not par-
ticipants in the legacy plan, to provide contribu-
tions to the legacy plan with respect to such 
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composite plan in a manner that satisfies the 
transition contribution requirements of sub-
section (d). 
‘‘(2) NOTICE.—Not later than 30 days after a 
determination by a plan sponsor of a composite plan 
that an agreement fails to satisfy the requirements 
described in paragraph (1), the plan sponsor shall 
provide notification of such failure and the reasons 
for such determination— 
‘‘(A) to the parties to the agreement; 
‘‘(B) to active participants of the com-
posite plan who have ceased to accrue or other-
wise earn benefits with respect to service with 
an employer pursuant to paragraph (1); and 
‘‘(C) to the Secretary, the Secretary of the 
Treasury, and the Pension Benefit Guaranty 
Corporation. 
‘‘(3) LIMITATION ON RETROACTIVE EFFECT.— 
This subsection shall not apply to benefits accrued 
before the date on which notice is provided under 
paragraph (2). 
‘‘(c) RESTRICTION
ON
ACCRUAL
OF
BENEFITS 
UNDER A COMPOSITE PLAN.— 
‘‘(1) IN GENERAL.—In any case in which an 
employer, under a collective bargaining agreement 
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entered into after the date of enactment of the Giv-
ing Retirement Options to Workers Act of 2020, 
ceases to have an obligation to contribute to a multi-
employer defined benefit plan, no employees em-
ployed by the employer may accrue or otherwise earn 
benefits under any composite plan, with respect to 
service with that employer, for a 60-month period 
beginning on the date on which the employer entered 
into such collective bargaining agreement. 
‘‘(2) NOTICE OF CESSATION OF OBLIGATION.— 
Within 30 days of determining that an employer has 
ceased to have an obligation to contribute to a leg-
acy plan with respect to employees employed by an 
employer that is or will be contributing to a com-
posite plan with respect to service of such employees, 
the plan sponsor of the legacy plan shall notify the 
plan sponsor of the composite plan of that cessation. 
‘‘(3) NOTICE OF CESSATION OF ACCRUALS.— 
Not later than 30 days after determining that an 
employer has ceased to have an obligation to con-
tribute to a legacy plan, the plan sponsor of the 
composite plan shall notify the bargaining parties, 
the active participants affected by the cessation of 
accruals, the Secretary, the Secretary of the Treas-
ury, and the Pension Benefit Guaranty Corporation 
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of the cessation of accruals, the period during which 
such cessation is in effect, and the reasons therefor. 
‘‘(4) LIMITATION ON RETROACTIVE EFFECT.— 
This subsection shall not apply to benefits accrued 
before the date on which notice is provided under 
paragraph (3). 
‘‘(d) TRANSITION CONTRIBUTION REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—A collective bargaining 
agreement satisfies the transition contribution re-
quirements of this subsection if the agreement— 
‘‘(A) authorizes payment of contributions 
to a legacy plan at a rate or rates equal to or 
greater than the transition contribution rate es-
tablished by the legacy plan under paragraph 
(2); and 
‘‘(B) does not provide for— 
‘‘(i) a suspension of contributions to 
the legacy plan with respect to any period 
of service; or 
‘‘(ii) any new direct or indirect exclu-
sion of younger or newly hired employees 
of the employer from being taken into ac-
count in determining contributions owed to 
the legacy plan. 
‘‘(2) TRANSITION CONTRIBUTION RATE.— 
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‘‘(A) IN
GENERAL.—The transition con-
tribution rate for a plan year is the contribution 
rate that, as certified by the actuary of the leg-
acy plan in accordance with the principles in 
section 305(b)(3)(B), is reasonably expected to 
be adequate— 
‘‘(i) to fund the normal cost for the 
plan year; 
‘‘(ii) to amortize the plan’s unfunded 
liabilities in level annual installments over 
25 years, beginning with the plan year in 
which the transition contribution rate is 
first established; and 
‘‘(iii) to amortize any subsequent 
changes in the legacy plan’s unfunded li-
ability due to experience gains or losses 
(including investment gains or losses, gains 
or losses due to contributions greater or 
less than the contributions made under the 
prior transition contribution rate, and 
other actuarial gains or losses), changes in 
actuarial assumptions, changes to the leg-
acy plan’s benefits, or changes in funding 
method over a period of 15 plan years be-
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ginning with the plan year in which such 
change in unfunded liability is incurred. 
The transition contribution rate for any plan 
year may not be less than the transition con-
tribution rate for the plan year in which such 
rate is first established. 
‘‘(B) MULTIPLE RATES.—If different rates 
of contribution are payable to the legacy plan 
by different employers or for different classes of 
employees, the certification shall specify a tran-
sition contribution rate for each such employer. 
‘‘(C) RATE APPLICABLE TO EMPLOYER.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided by clause (ii), the transition con-
tribution rate applicable to an employer for 
a plan year is the rate in effect for the 
plan year of the legacy plan that com-
mences on or after 180 days before the 
earlier of— 
‘‘(I) the effective date of the col-
lective bargaining agreement pursuant 
to which the employer contributes to 
the legacy plan; or 
‘‘(II) 5 years after the last plan 
year for which the transition contribu-
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paragraph (A), the determination of the transi-
tion contribution rate for a plan year shall be 
based on actuarial assumptions and methods 
consistent with the minimum funding deter-
minations made under section 304 (or, if appli-
cable, section 305) with respect to the legacy 
plan for the plan year. 
‘‘(F) ADJUSTMENTS IN RATE.—The plan 
sponsor of a legacy plan from time to time may 
adjust the transition contribution rate or rates 
applicable to an employer under this paragraph 
by increasing some rates and decreasing others 
if the actuary certifies that such adjusted rates 
in combination will produce projected contribu-
tion income for the plan year beginning on or 
after the date of certification that is not less 
than would be produced by the transition con-
tribution rates in effect at the time of the cer-
tification. 
‘‘(G) NOTICE OF TRANSITION CONTRIBU-
TION RATE.—The plan sponsor of a legacy plan 
shall provide notice to the parties to collective 
bargaining agreements pursuant to which con-
tributions are made to the legacy plan of 
changes to the transition contribution rate re-
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quirements at least 30 days before the begin-
ning of the plan year for which the rate is effec-
tive. 
‘‘(H) NOTICE TO COMPOSITE PLAN SPON-
SOR.—Not later than 30 days after a deter-
mination by the plan sponsor of a legacy plan 
that a collective bargaining agreement provides 
for a rate of contributions that is below the 
transition contribution rate applicable to one or 
more employers that are parties to the collective 
bargaining agreement, the plan sponsor of the 
legacy plan shall notify the plan sponsor of any 
composite plan under which employees of such 
employer would otherwise be eligible to accrue 
a benefit. 
‘‘(3) CORRECTION PROCEDURES.—Pursuant to 
standards prescribed by the Secretary, the plan 
sponsor of a composite plan shall adopt rules and 
procedures that give the parties to the collective bar-
gaining agreement notice of the failure of such 
agreement to satisfy the transition contribution re-
quirements of this subsection, and a reasonable op-
portunity to correct such failure, not to exceed 180 
days from the date of notice given under subsection 
(b)(2). 
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‘‘(4) SUPPLEMENTAL CONTRIBUTIONS.—A col-
lective bargaining agreement may provide for supple-
mental contributions to the legacy plan for a plan 
year in excess of the transition contribution rate de-
termined under paragraph (2), regardless of whether 
the legacy plan is in endangered or critical status for 
such plan year. 
‘‘(e) NONAPPLICATION
OF COMPOSITE PLAN RE-
STRICTIONS.— 
‘‘(1) IN
GENERAL.—The provisions of sub-
sections (a), (b), and (c) shall not apply with respect 
to a collective bargaining agreement, to the extent 
the agreement, or a predecessor agreement, provides 
or provided for contributions to a defined benefit 
plan that is a legacy plan, as of the first day of the 
first plan year following a plan year for which the 
plan actuary certifies that the plan is fully funded, 
has been fully funded for at least three out of the 
immediately preceding 5 plan years, and is projected 
to remain fully funded for at least the following 4 
plan years. 
‘‘(2) DETERMINATION OF FULLY FUNDED.—A 
plan is fully funded for purposes of paragraph (1) 
if, as of the valuation date of the plan for a plan 
year, the value of the plan’s assets equals or exceeds 
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the present value of the plan’s liabilities, determined 
in accordance with the rules prescribed by the Pen-
sion Benefit Guaranty Corporation under sections 
4219(c)(1)(D) and 4281 for multiemployer plans 
terminating by mass withdrawal, as in effect for the 
date of the determination, except the plan’s reason-
able assumption regarding the starting date of bene-
fits may be used. 
‘‘(3) OTHER
APPLICABLE
RULES.—Except as 
provided in paragraph (2), actuarial determinations 
and projections under this section shall be based on 
the rules in section 305(b)(3) and section 802(b). 
‘‘SEC. 806. MERGERS AND ASSET TRANSFERS OF COM-
POSITE PLANS. 
‘‘(a) IN GENERAL.—Assets and liabilities of a com-
posite plan may only be merged with, or transferred to, 
another plan if— 
‘‘(1) the other plan is a composite plan; 
‘‘(2) the plan or plans resulting from the merg-
er or transfer is a composite plan; 
‘‘(3) no participant’s accrued benefit or adjust-
able benefit is lower immediately after the trans-
action than it was immediately before the trans-
action; and 
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‘‘(4) the value of the assets transferred in the 
case of a transfer reasonably reflects the value of the 
amounts contributed with respect to the participants 
whose benefits are being transferred, adjusted for al-
locable distributions, investment gains and losses, 
and administrative expenses. 
‘‘(b) LEGACY PLAN.— 
‘‘(1) IN GENERAL.—After a merger or transfer 
involving a composite plan, the legacy plan with re-
spect to an employer that is obligated to contribute 
to the resulting composite plan is the legacy plan 
that applied to that employer immediately before the 
merger or transfer. 
‘‘(2) MULTIPLE
LEGACY
PLANS.—If an em-
ployer is obligated to contribute to more than one 
legacy plan with respect to employees eligible to ac-
crue benefits under more than one composite plan 
and there is a merger or transfer of such legacy 
plans, the transition contribution rate applicable to 
the legacy plan resulting from the merger or trans-
fer with respect to that employer shall be determined 
in accordance with the provisions of section 
805(d)(2)(B).’’. 
(2) PENALTIES.— 
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(A) CIVIL ENFORCEMENT OF FAILURE TO 
COMPLY WITH REALIGNMENT PROGRAM.—Sec-
tion 502(a) of such Act (29 U.S.C. 1132(a)) is 
amended— 
(i) in paragraph (10), by striking ‘‘or’’ 
at the end; 
(ii) in paragraph (11), by striking the 
period at the end and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(12) in the case of a composite plan required 
to adopt a realignment program under section 803, 
if the plan sponsor— 
‘‘(A) has not adopted a realignment pro-
gram under that section by the deadline estab-
lished in such section; or 
‘‘(B) fails to update or comply with the 
terms of the realignment program in accordance 
with the requirements of such section, 
by the Secretary, by an employer that has an obliga-
tion to contribute with respect to the composite plan, 
or by an employee organization that represents ac-
tive participants in the composite plan, for an order 
compelling the plan sponsor to adopt a realignment 
program, or to update or comply with the terms of 
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the realignment program, in accordance with the re-
quirements of such section and the realignment pro-
gram.’’. 
(B) CIVIL PENALTIES.—Section 502(c) of 
such Act (29 U.S.C. 1132(c)) is amended— 
(i) by moving paragraphs (8), (10), 
and (12) each 2 ems to the left; 
(ii) by redesignating paragraphs (9) 
through (12) as paragraphs (12) through 
(15), respectively; and 
(iii) by inserting after paragraph (8) 
the following: 
‘‘(9) The Secretary may assess against any plan 
sponsor of a composite plan a civil penalty of not 
more than $1,100 per day for each violation by such 
sponsor— 
‘‘(A) of the requirement under section 
802(a) on the plan actuary to certify the plan’s 
current or projected funded ratio by the date 
specified in such subsection; or 
‘‘(B) of the requirement under section 803 
to adopt a realignment program by the deadline 
established in that section and to comply with 
its terms. 
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‘‘(10)(A) The Secretary may assess against any 
plan sponsor of a composite plan a civil penalty of 
not more than $100 per day for each violation by 
such sponsor of the requirement under section 
803(b) to provide notice as described in such section, 
except that no penalty may be assessed in any case 
in which the plan sponsor exercised reasonable dili-
gence to meet the requirements of such section 
and— 
‘‘(i) the plan sponsor did not know that the 
violation existed; or 
‘‘(ii) the plan sponsor provided such notice 
during the 30-day period beginning on the first 
date on which the plan sponsor knew, or in ex-
ercising reasonable due diligence should have 
known, that such violation existed. 
‘‘(B) In any case in which the plan sponsor ex-
ercised reasonable diligence to meet the require-
ments of section 803(b)— 
‘‘(i) the total penalty assessed under this 
paragraph against such sponsor for a plan year 
may not exceed $500,000; and 
‘‘(ii) the Secretary may waive part or all of 
such penalty to the extent that the payment of 
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such penalty would be excessive or otherwise in-
equitable relative to the violation involved. 
‘‘(11) The Secretary may assess against any 
plan sponsor of a composite plan a civil penalty of 
not more than $100 per day for each violation by 
such sponsor of the notice requirements under sec-
tions 801(b)(5) and 805(b)(2).’’. 
(3) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act (29 U.S.C. 1001 
note) is amended by inserting after the item relating 
to section 734 the following: 
‘‘PART 8—COMPOSITE PLANS AND LEGACY PLANS 
‘‘Sec. 801. Composite plan defined. 
‘‘Sec. 802. Funded ratios; actuarial assumptions. 
‘‘Sec. 803. Realignment program. 
‘‘Sec. 804. Limitation on increasing benefits. 
‘‘Sec. 805. Composite plan restrictions to preserve legacy plan funding. 
‘‘Sec. 806. Mergers and asset transfers of composite plans.’’. 
(b) AMENDMENT TO THE INTERNAL REVENUE CODE 
OF 1986.— 
(1) IN GENERAL.—Part III of subchapter D of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘Subpart C—Composite Plans and Legacy Plans 
‘‘Sec. 437. Composite plan defined. 
‘‘Sec. 438. Funded ratios; actuarial assumptions. 
‘‘Sec. 439. Realignment program. 
‘‘Sec. 440. Limitation on increasing benefits. 
‘‘Sec. 440A. Composite plan restrictions to preserve legacy plan funding. 
‘‘Sec. 440B. Mergers and asset transfers of composite plans. 
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‘‘SEC. 437. COMPOSITE PLAN DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this title, the 
term ‘composite plan’ means a pension plan— 
‘‘(1) which is a multiemployer plan that is nei-
ther a defined benefit plan nor a defined contribu-
tion plan, 
‘‘(2) the terms of which provide that the plan 
is a composite plan for purposes of this title with re-
spect to which not more than one multiemployer de-
fined benefit plan is treated as a legacy plan within 
the meaning of section 440A, unless there is more 
than one legacy plan following a merger of composite 
plans under section 440B, 
‘‘(3) which provides systematically for the pay-
ment of benefits— 
‘‘(A) objectively calculated pursuant to a 
formula enumerated in the plan document with 
respect to plan participants after retirement, 
for life, and 
‘‘(B) in the form of life annuities, except 
for benefits which under section 411(a)(11) 
may be immediately distributed without the 
consent of the participant, 
‘‘(4) for which the plan contributions for the 
first plan year are at least 120 percent of the nor-
mal cost for the plan year, 
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‘‘(5) which requires— 
‘‘(A) an annual valuation of the liability of 
the plan as of a date within the plan year to 
which the valuation refers or within one month 
prior to the beginning of such year, 
‘‘(B) an annual actuarial determination of 
the plan’s current funded ratio and projected 
funded ratio under section 438(a), 
‘‘(C) corrective action through a realign-
ment program pursuant to section 439 when-
ever the plan’s projected funded ratio is below 
120 percent for the plan year, and 
‘‘(D) an annual notification to each partici-
pant describing the participant’s benefits under 
the plan and explaining that such benefits may 
be subject to reduction under a realignment 
program pursuant to section 439 based on the 
plan’s funded status in future plan years, and 
‘‘(6) the board of trustees of which includes at 
least one retiree or beneficiary in pay status during 
each plan year following the first plan year in which 
at least 5 percent of the participants in the plan are 
retirees or beneficiaries in pay status. 
‘‘(b) TRANSITION FROM
A MULTIEMPLOYER DE-
FINED BENEFIT PLAN.— 
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‘‘(1) IN GENERAL.—The plan sponsor of a de-
fined benefit plan that is a multiemployer plan may, 
subject to paragraph (2), amend the plan to incor-
porate the features of a composite plan as a compo-
nent of the multiemployer plan separate from the 
defined benefit plan component, except in the case of 
a defined benefit plan for which the plan actuary has 
certified under section 432(b)(3) that the plan is or 
will be in critical status for the plan year in which 
such amendment would become effective or for any 
of the succeeding 5 plan years. 
‘‘(2) REQUIREMENTS.—Any amendment pursu-
ant to paragraph (1) to incorporate the features of 
a composite plan as a component of a multiemployer 
plan shall— 
‘‘(A) apply with respect to all collective 
bargaining agreements providing for contribu-
tions to the multiemployer plan on or after the 
effective date of the amendment, 
‘‘(B) apply with respect to all participants 
in the multiemployer plan for whom contribu-
tions are made to the multiemployer plan on or 
after the effective date of the amendment, 
‘‘(C) specify that the effective date of the 
amendment is— 
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‘‘(i) the first day of a specified plan 
year following the date of the adoption of 
the amendment, except that the plan spon-
sor may alternatively provide for a sepa-
rate effective date with respect to each col-
lective bargaining agreement under which 
contributions to the multiemployer plan 
are required, which shall occur on the first 
day of the first plan year beginning after 
the termination, or if earlier, the re-open-
ing, of each such agreement, or such ear-
lier date as the parties to the agreement 
and the plan sponsor of the multiemployer 
plan shall agree to, and 
‘‘(ii) not later than the first day of the 
fifth plan year beginning on or after the 
date of the adoption of the amendment, 
‘‘(D) specify that, as of the amendment’s 
effective date, no further benefits shall accrue 
under the defined benefit component of the 
multiemployer plan, and 
‘‘(E) specify that, as of the amendment’s 
effective date, the plan sponsor of the multiem-
ployer plan shall be the plan sponsor of both 
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cated proportionally), and permits, but 
does not require, the pooling of some or all 
of the assets of the two plan components 
for investment purposes, and 
‘‘(ii) that the assets of each of the two 
plan components shall be held, invested, 
reinvested, managed, administered and dis-
tributed for the exclusive benefit of the 
participants and beneficiaries of each such 
plan component, and in no event shall the 
assets of one of the plan components be 
available to pay benefits due under the 
other plan component. 
‘‘(4) NOT
A
TERMINATION
EVENT.—Notwith-
standing section 4041A of the Employee Retirement 
Income Security Act of 1974, an amendment pursu-
ant to paragraph (1) to incorporate the features of 
a composite plan as a component of a multiemployer 
plan does not constitute termination of the multiem-
ployer plan. 
‘‘(5) NOTICE TO THE SECRETARY.— 
‘‘(A) NOTICE.—The plan sponsor of a 
composite plan shall provide notice to the Sec-
retary of the intent to establish the composite 
plan (or, in the case of a composite plan incor-
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1301 
porated as a component of a multiemployer 
plan as described in paragraph (1), the intent 
to amend the multiemployer plan to incorporate 
such composite plan) at least 30 days prior to 
the effective date of such establishment or 
amendment. 
‘‘(B) CERTIFICATION.—In the case of a 
composite plan incorporated as a component of 
a multiemployer plan as described in paragraph 
(1), such notice shall include a certification by 
the plan actuary under section 432(b)(3) that 
the effective date of the amendment occurs in 
a plan year for which the multiemployer plan is 
not in critical status for that plan year and any 
of the succeeding 5 plan years. 
‘‘(6) REFERENCES TO COMPOSITE PLAN COM-
PONENT.—As used in this subpart, the term ‘com-
posite plan’ includes a composite plan component 
added to a defined benefit plan pursuant to para-
graph (1). 
‘‘(7) RULE
OF
CONSTRUCTION.—Paragraph 
(2)(A) shall not be construed as preventing the plan 
sponsor of a multiemployer plan from adopting an 
amendment pursuant to paragraph (1) because some 
collective bargaining agreements are amended to 
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cease any covered employer’s obligation to contribute 
to the multiemployer plan before or after the plan 
amendment is effective. Paragraph (2)(B) shall not 
be construed as preventing the plan sponsor of a 
multiemployer plan from adopting an amendment 
pursuant to paragraph (1) because some partici-
pants cease to have contributions made to the multi-
employer plan on their behalf before or after the 
plan amendment is effective. 
‘‘(c) COORDINATION WITH FUNDING RULES.—Ex-
cept as otherwise provided in this title, sections 412, 431, 
and 432 shall not apply to a composite plan. 
‘‘(d) TREATMENT OF A COMPOSITE PLAN.—For pur-
poses of this title (other than sections 412 and 418E), 
a composite plan shall be treated as if it were a defined 
benefit plan unless a different treatment is provided for 
under applicable law. 
‘‘SEC. 438. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS. 
‘‘(a) CERTIFICATION OF FUNDED RATIOS.— 
‘‘(1) IN
GENERAL.—Not later than the one- 
hundred twentieth day of each plan year of a com-
posite plan, the plan actuary of the composite plan 
shall certify to the Secretary, the Secretary of 
Labor, and the plan sponsor the plan’s current fund-
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ed ratio and projected funded ratio for the plan 
year. 
‘‘(2) DETERMINATION
OF
CURRENT
FUNDED 
RATIO AND PROJECTED FUNDED RATIO.—For pur-
poses of this section— 
‘‘(A) CURRENT FUNDED RATIO.—The cur-
rent funded ratio is the ratio (expressed as a 
percentage) of— 
‘‘(i) the value of the plan’s assets as 
of the first day of the plan year, to 
‘‘(ii) the plan actuary’s best estimate 
of the present value of the plan liabilities 
as of the first day of the plan year. 
‘‘(B) PROJECTED
FUNDED
RATIO.—The 
projected funded ratio is the current funded 
ratio projected to the first day of the fifteenth 
plan year following the plan year for which the 
determination is being made. 
‘‘(3) CONSIDERATION OF CONTRIBUTION RATE 
INCREASES.—For purposes of projections under this 
subsection, the plan sponsor may anticipate con-
tribution rate increases beyond the term of the cur-
rent collective bargaining agreement and any agreed- 
to supplements, up to a maximum of 2.5 percent per 
year, compounded annually, unless it would be un-
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reasonable under the circumstances to assume that 
contributions would increase by that amount. 
‘‘(b) ACTUARIAL ASSUMPTIONS
AND METHODS.— 
For purposes of this part— 
‘‘(1) IN GENERAL.—All costs, liabilities, rates 
of interest, and other factors under the plan shall be 
determined for a plan year on the basis of actuarial 
assumptions and methods— 
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations), 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan, and 
‘‘(C) with respect to which any change 
from the actuarial assumptions and methods 
used in the previous plan year shall be certified 
by the plan actuary and the actuarial rationale 
for such change provided in the annual report 
required by section 6058. 
‘‘(2) FAIR MARKET VALUE OF ASSETS.—The 
value of the plan’s assets shall be taken into account 
on the basis of their fair market value. 
‘‘(3) DETERMINATION OF NORMAL COST AND 
PLAN LIABILITIES.—A plan’s normal cost and liabil-
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ities shall be based on the most recent actuarial 
valuation required under section 437(a)(5)(A) and 
the unit credit funding method. 
‘‘(4) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—Any contributions for a plan year 
made by an employer after the last day of such plan 
year, but not later than two and one-half months 
after such day, shall be deemed to have been made 
on such last day. For purposes of this paragraph, 
such two and one-half month period may be ex-
tended for not more than six months under regula-
tions prescribed by the Secretary. 
‘‘(5) ADDITIONAL ACTUARIAL ASSUMPTIONS.— 
Except where otherwise provided in this subpart, the 
provisions of section 432(b)(3)(B) shall apply to any 
determination or projection under this subpart. 
‘‘SEC. 439. REALIGNMENT PROGRAM. 
‘‘(a) REALIGNMENT PROGRAM.— 
‘‘(1) ADOPTION.—In any case in which the plan 
actuary certifies under section 438(a) that the plan’s 
projected funded ratio is below 120 percent for the 
plan year, the plan sponsor shall adopt a realign-
ment program under paragraph (2) not later than 
210 days after the due date of the certification re-
quired under section 438(a). The plan sponsor shall 
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adopt an updated realignment program for each suc-
ceeding plan year for which a certification described 
in the preceding sentence is made. 
‘‘(2) CONTENT OF REALIGNMENT PROGRAM.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram adopted under this paragraph is a written 
program which consists of all reasonable meas-
ures, including options or a range of options to 
be undertaken by the plan sponsor or proposed 
to the bargaining parties, formulated, based on 
reasonably anticipated experience and reason-
able actuarial assumptions, to enable the plan 
to achieve a projected funded ratio of at least 
120 percent for the following plan year. 
‘‘(B) INITIAL PROGRAM ELEMENTS.—Rea-
sonable measures under a realignment program 
described in subparagraph (A) may include any 
of the following: 
‘‘(i) Proposed contribution increases. 
‘‘(ii) A reduction in the rate of future 
benefit accruals, so long as the resulting 
rate shall not be less than 1 percent of the 
contributions on which benefits are based 
as of the start of the plan year (or the 
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equivalent standard accrual rate as de-
scribed in section 432(e)(6)). 
‘‘(iii) A modification or elimination of 
adjustable benefits of participants that are 
not in pay status before the date of the no-
tice required under subsection (b)(1). 
‘‘(iv) Any other legally available meas-
ures not specifically described in this sub-
paragraph or subparagraph (C) or (D) 
that the plan sponsor determines are rea-
sonable. 
‘‘(C) ADDITIONAL PROGRAM ELEMENTS.— 
If the plan sponsor has determined that all rea-
sonable measures available under subparagraph 
(B) will not enable the plan to achieve a pro-
jected funded ratio of at least 120 percent the 
following plan year, such reasonable measures 
may also include— 
‘‘(i) a reduction of accrued benefits 
that are not in pay status by the date of 
the 
notice 
required 
under 
subsection 
(b)(1), or 
‘‘(ii) a reduction of any benefits of 
participants that are in pay status before 
the date of the notice required under sub-
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section (b)(1) other than core benefits as 
defined in paragraph (4). 
‘‘(D) ADDITIONAL
REDUCTIONS.—In the 
case of a composite plan for which the plan 
sponsor has determined that all reasonable 
measures available under subparagraphs (B) 
and (C) will not enable the plan to achieve a 
projected funded ratio of at least 120 percent 
for the following plan year, such reasonable 
measures may also include— 
‘‘(i) a further reduction in the rate of 
future benefit accruals without regard to 
the limitation applicable under subpara-
graph (B)(ii), or 
‘‘(ii) a reduction of core benefits, 
provided that such reductions shall be equitably 
distributed across the participant and bene-
ficiary population, taking into account factors, 
with respect to participants and beneficiaries 
and their benefits, that may include one or 
more of the factors listed in subclauses (I) 
through (X) of section 432(e)(9)(D)(vi), to the 
extent necessary to enable the plan to achieve 
a projected funded ratio of at least 120 percent 
for the following plan year, or at the election of 
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the plan sponsor, a projected funded ratio of at 
least 100 percent for the following plan year 
and a current funded ratio of at least 90 per-
cent. 
‘‘(3) ADJUSTABLE
BENEFIT
DEFINED.—For 
purposes of this subpart, the term ‘adjustable ben-
efit’ means— 
‘‘(A) benefits, rights, and features under 
the plan, including post-retirement death bene-
fits, 60-month guarantees, disability benefits 
not yet in pay status, and similar benefits, 
‘‘(B) any early retirement benefit or retire-
ment-type subsidy (within the meaning of sec-
tion 411(d)(6)(B)(i)) and any benefit payment 
option (other than the qualified joint and sur-
vivor annuity), and 
‘‘(C) benefit increases that were adopted 
(or, if later, took effect) less than 60 months 
before the first day such realignment program 
took effect. 
‘‘(4) CORE BENEFIT DEFINED.—For purposes 
of this subpart, the term ‘core benefit’ means a par-
ticipant’s accrued benefit payable in the normal form 
of an annuity commencing at normal retirement age, 
determined without regard to— 
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‘‘(A) any early retirement benefits, retire-
ment-type subsidies, or other benefits, rights, or 
features that may be associated with that ben-
efit, and 
‘‘(B) any cost-of-living adjustments or ben-
efit increases effective after the date of retire-
ment. 
‘‘(5) COORDINATION WITH CONTRIBUTION IN-
CREASES.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram may provide that some or all of the ben-
efit modifications described in the program will 
only take effect if the bargaining parties fail to 
agree to specified levels of increases in contribu-
tions to the plan, effective as of specified dates. 
‘‘(B) INDEPENDENT
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that are inde-
pendent of potential contribution increases, 
such changes shall take effect not later than 
180 days following the first day of the first 
plan year that begins following the adoption of 
the realignment program. 
‘‘(C) CONDITIONAL
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
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1311 
changes to the benefit formula that take effect 
only if the bargaining parties fail to agree to 
contribution increases, such changes shall take 
effect not later than the first day of the first 
plan year beginning after the third anniversary 
of the date of adoption of the realignment pro-
gram. 
‘‘(D) REVOCATION OF CERTAIN BENEFIT 
MODIFICATIONS.—Benefit 
modifications 
de-
scribed in paragraph (3) may be revoked, in 
whole or in part, and retroactively or prospec-
tively, when contributions to the plan are in-
creased, as specified in the realignment pro-
gram, including any amendments thereto. The 
preceding sentence shall not apply unless the 
contribution increases are to be effective not 
later than the fifth anniversary of the first day 
of the first plan year that begins after the 
adoption of the realignment program. 
‘‘(b) NOTICE.— 
‘‘(1) IN GENERAL.—In any case in which it is 
certified under section 438(a) that the projected 
funded ratio is less than 120 percent, the plan spon-
sor shall, not later than 30 days after the date of 
the certification, provide notification of the current 
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1312 
and projected funded ratios to the participants and 
beneficiaries, the bargaining parties, and the Sec-
retary. Such notice shall include— 
‘‘(A) an explanation that contribution rate 
increases or benefit reductions may be nec-
essary, 
‘‘(B) a description of the types of benefits 
that might be reduced, and 
‘‘(C) an estimate of the contribution in-
creases and benefit reductions that may be nec-
essary to achieve a projected funded ratio of 
120 percent. 
‘‘(2) NOTICE OF BENEFIT MODIFICATIONS.— 
‘‘(A) IN GENERAL.—No modifications may 
be made that reduce the rate of future benefit 
accrual or that reduce core benefits or adjust-
able benefits unless notice of such reduction has 
been given at least 180 days before the general 
effective date of such reduction for all partici-
pants and beneficiaries to— 
‘‘(i) plan participants and bene-
ficiaries, 
‘‘(ii) each employer who has an obliga-
tion to contribute to the composite plan, 
and 
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‘‘(iii) 
each 
employee 
organization 
which, for purposes of collective bar-
gaining, represents plan participants em-
ployed by such employers. 
‘‘(B) CONTENT
OF
NOTICE.—The notice 
under subparagraph (A) shall contain— 
‘‘(i) sufficient information to enable 
participants and beneficiaries to under-
stand the effect of any reduction on their 
benefits, including an illustration of any 
affected benefit or subsidy, on an annual 
or monthly basis that a participant or ben-
eficiary would otherwise have been eligible 
for as of the general effective date de-
scribed in subparagraph (A), and 
‘‘(ii) information as to the rights and 
remedies of plan participants and bene-
ficiaries as well as how to contact the De-
partment of Labor for further information 
and assistance, where appropriate. 
‘‘(C) FORM
AND
MANNER.—Any notice 
under subparagraph (A)— 
‘‘(i) shall be provided in a form and 
manner prescribed in regulations of the 
Secretary of Labor, 
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1314 
‘‘(ii) shall be written in a manner so 
as to be understood by the average plan 
participant. 
‘‘(3) MODEL NOTICES.—The Secretary shall— 
‘‘(A) prescribe model notices that the plan 
sponsor of a composite plan may use to satisfy 
the notice requirements under this subsection, 
and 
‘‘(B) by regulation enumerate any details 
related to the elements listed in paragraph (1) 
that any notice under this subsection must in-
clude. 
‘‘(4) DELIVERY
METHOD.—Any notice under 
this part shall be provided in writing and may also 
be provided in electronic form to the extent that the 
form is reasonably accessible to persons to whom the 
notice is provided. 
‘‘SEC. 440. LIMITATION ON INCREASING BENEFITS. 
‘‘(a) LEVEL OF CURRENT FUNDED RATIOS.—Except 
as provided in subsections (c), (d), and (e), no plan 
amendment increasing benefits or establishing new bene-
fits under a composite plan may be adopted for a plan 
year unless— 
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‘‘(1) the plan’s current funded ratio is at least 
110 percent (without regard to the benefit increase 
or new benefits), 
‘‘(2) taking the benefit increase or new benefits 
into account, the current funded ratio is at least 100 
percent and the projected funded ratio for the cur-
rent plan year is at least 120 percent, 
‘‘(3) in any case in which, after taking the ben-
efit increase or new benefits into account, the cur-
rent funded ratio is less than 140 percent or the 
projected funded ratio is less than 140 percent, the 
benefit increase or new benefits are projected by the 
plan actuary to increase the present value of the 
plan’s liabilities for the plan year by not more than 
3 percent, and 
‘‘(4) expected contributions for the current plan 
year are at least 120 percent of normal cost for the 
plan year, determined using the unit credit funding 
method and treating the benefit increase or new ben-
efits as in effect for the entire plan year. 
‘‘(b) ADDITIONAL REQUIREMENTS WHERE CORE 
BENEFITS REDUCED.—If a plan has been amended to re-
duce core benefits pursuant to a realignment program 
under section 439(a)(2)(D), such plan may not be subse-
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1316 
quently amended to increase core benefits unless the 
amendment— 
‘‘(1) increases the level of future benefit pay-
ments only, and 
‘‘(2) provides for an equitable distribution of 
benefit increases across the participant and bene-
ficiary population, taking into account the extent to 
which the benefits of participants were previously re-
duced pursuant to such realignment program. 
‘‘(c) EXCEPTION TO COMPLY WITH APPLICABLE 
LAW.—Subsection (a) shall not apply in connection with 
a plan amendment if the amendment is required as a con-
dition of qualification under part I of subchapter D of 
chapter 1 or to comply with other applicable law. 
‘‘(d) EXCEPTION WHERE MAXIMUM DEDUCTIBLE 
LIMIT APPLIES.—Subsection (a) shall not apply in con-
nection with a plan amendment if and to the extent that 
contributions to the composite plan would not be deduct-
ible for the plan year under section 404(a)(1)(E) if the 
plan amendment is not adopted. The Secretary of the 
Treasury shall issue regulations to implement this para-
graph. 
‘‘(e) EXCEPTION FOR CERTAIN BENEFIT MODIFICA-
TIONS.—Subsection (a) shall not apply in connection with 
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