H. R. 83—671 
subparagraph (E) or the suspension of benefits expires 
by its own terms. 
‘‘(iii) NO LIABILITY.—The plan shall not be liable 
for any benefit payments not made as a result of a 
suspension of benefits under this paragraph. 
‘‘(iv) APPLICABILITY.—For purposes of this para-
graph, all references to suspensions of benefits, 
increases in benefits, or resumptions of suspended 
benefits with respect to participants shall also apply 
with respect to benefits of beneficiaries or alternative 
payees of participants. 
‘‘(v) RETIREE REPRESENTATIVE.— 
‘‘(I) IN GENERAL.—In the case of a plan with 
10,000 or more participants, not later than 60 
days prior to the plan sponsor submitting an 
application to suspend benefits, the plan sponsor 
shall select a participant of the plan in pay status 
to act as a retiree representative. The retiree rep-
resentative shall advocate for the interests of the 
retired and deferred vested participants and bene-
ficiaries of the plan throughout the suspension 
approval process. 
‘‘(II) REASONABLE EXPENSES FROM PLAN.—The 
plan shall provide for reasonable expenses by the 
retiree representative, including reasonable legal 
and actuarial support, commensurate with the 
plan’s size and funded status. 
‘‘(III) SPECIAL RULE RELATING TO FIDUCIARY 
STATUS.—Duties performed pursuant to subclause 
(I) shall not be subject to section 404(a). The pre-
ceding sentence shall not apply to those duties 
associated with an application to suspend benefits 
pursuant to subparagraph (G) that are performed 
by the retiree representative who is also a plan 
trustee. 
‘‘(C) CONDITIONS FOR SUSPENSIONS.—The plan sponsor 
of a plan in critical and declining status for a plan year 
may suspend benefits only if the following conditions are 
met: 
‘‘(i) Taking into account the proposed suspensions 
of benefits (and, if applicable, a proposed partition 
of the plan under section 4233), the plan actuary cer-
tifies that the plan is projected to avoid insolvency 
within the meaning of section 4245, assuming the 
suspensions of benefits continue until the suspensions 
of benefits expire by their own terms or if no such 
expiration date is set, indefinitely. 
‘‘(ii) The plan sponsor determines, in a written 
record to be maintained throughout the period of the 
benefit suspension, that the plan is still projected to 
become insolvent unless benefits are suspended under 
this paragraph, although all reasonable measures to 
avoid insolvency have been taken (and continue to 
be taken during the period of the benefit suspension). 
In its determination, the plan sponsor may take into 
account factors including the following: 
‘‘(I) Current and past contribution levels.
H. R. 83—672 
‘‘(II) Levels of benefit accruals (including any 
prior reductions in the rate of benefit accruals). 
‘‘(III) Prior reductions (if any) of adjustable 
benefits. 
‘‘(IV) Prior suspensions (if any) of benefits 
under this subsection. 
‘‘(V) The impact on plan solvency of the sub-
sidies and ancillary benefits available to active 
participants. 
‘‘(VI) Compensation levels of active partici-
pants relative to employees in the participants’ 
industry generally. 
‘‘(VII) Competitive and other economic factors 
facing contributing employers. 
‘‘(VIII) The impact of benefit and contribution 
levels on retaining active participants and bar-
gaining groups under the plan. 
‘‘(IX) The impact of past and anticipated con-
tribution increases under the plan on employer 
attrition and retention levels. 
‘‘(X) Measures undertaken by the plan sponsor 
to retain or attract contributing employers. 
‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any suspensions 
of benefits made by a plan sponsor pursuant to this para-
graph shall be subject to the following limitations: 
‘‘(i) The monthly benefit of any participant or bene-
ficiary may not be reduced below 110 percent of the 
monthly benefit which is guaranteed by the Pension 
Benefit Guaranty Corporation under section 4022A on 
the date of the suspension. 
‘‘(ii)(I) In the case of a participant or beneficiary 
who has attained 75 years of age as of the effective 
date of the suspension, not more than the applicable 
percentage of the maximum suspendable benefits of 
such participant or beneficiary may be suspended 
under this paragraph. 
‘‘(II) For purposes of subclause (I), the maximum 
suspendable benefits of a participant or beneficiary 
is the portion of the benefits of such participant or 
beneficiary that would be suspended pursuant to this 
paragraph without regard to this clause; 
‘‘(III) For purposes of subclause (I), the applicable 
percentage is a percentage equal to the quotient 
obtained by dividing— 
‘‘(aa) the number of months during the period 
beginning with the month after the month in which 
occurs the effective date of the suspension and 
ending with the month during which the partici-
pant or beneficiary attains the age of 80, by 
‘‘(bb) 60 months. 
‘‘(iii) No benefits based on disability (as defined 
under the plan) may be suspended under this para-
graph. 
‘‘(iv) Any suspensions of benefits, in the aggregate 
(and, if applicable, considered in combination with a 
partition of the plan under section 4233), shall be
H. R. 83—673 
reasonably estimated to achieve, but not materially 
exceed, the level that is necessary to avoid insolvency. 
‘‘(v) In any case in which a suspension of benefits 
with respect to a plan is made in combination with 
a partition of the plan under section 4233, the suspen-
sion of benefits may not take effect prior to the effective 
date of such partition. 
‘‘(vi) Any suspensions of benefits shall be equitably 
distributed across the participant and beneficiary popu-
lation, taking into account factors, with respect to 
participants and beneficiaries and their benefits, that 
may include one or more of the following: 
‘‘(I) Age and life expectancy. 
‘‘(II) Length of time in pay status. 
‘‘(III) Amount of benefit. 
‘‘(IV) Type of benefit: survivor, normal retire-
ment, early retirement. 
‘‘(V) Extent to which participant or beneficiary 
is receiving a subsidized benefit. 
‘‘(VI) Extent to which participant or bene-
ficiary 
has 
received 
post-retirement 
benefit 
increases. 
‘‘(VII) History of benefit increases and reduc-
tions. 
‘‘(VIII) 
Years 
to 
retirement 
for 
active 
employees. 
‘‘(IX) Any discrepancies between active and 
retiree benefits. 
‘‘(X) Extent to which active participants are 
reasonably likely to withdraw support for the plan, 
accelerating employer withdrawals from the plan 
and increasing the risk of additional benefit reduc-
tions for participants in and out of pay status. 
‘‘(XI) Extent to which benefits are attributed 
to service with an employer that failed to pay 
its full withdrawal liability. 
‘‘(vii) In the case of a plan that includes the bene-
fits described in clause (III), benefits suspended under 
this paragraph shall— 
‘‘(I) first, be applied to the maximum extent 
permissible to benefits attributable to a partici-
pant’s service for an employer which withdrew 
from the plan and failed to pay (or is delinquent 
with respect to paying) the full amount of its with-
drawal liability under section 4201(b)(1) or an 
agreement with the plan, 
‘‘(II) second, except as provided by subclause 
(III), be applied to all other benefits that may 
be suspended under this paragraph, and 
‘‘(III) third, be applied to benefits under a 
plan that are directly attributable to a participant’s 
service with any employer which has, prior to the 
date of enactment of the Multiemployer Pension 
Reform Act of 2014— 
‘‘(aa) withdrawn from the plan in a com-
plete withdrawal under section 4203 and has
H. R. 83—674 
paid the full amount of the employer’s with-
drawal liability under section 4201(b)(1) or an 
agreement with the plan, and 
‘‘(bb) pursuant to a collective bargaining 
agreement, assumed liability for providing 
benefits to participants and beneficiaries of 
the plan under a separate, single-employer 
plan sponsored by the employer, in an amount 
equal to any amount of benefits for such 
participants and beneficiaries reduced as a 
result of the financial status of the plan. 
‘‘(E) BENEFIT IMPROVEMENTS.— 
‘‘(i) IN GENERAL.—The plan sponsor may, in its 
sole discretion, provide benefit improvements while any 
suspension of benefits under the plan remains in effect, 
except that the plan sponsor may not increase the 
liabilities of the plan by reason of any benefit improve-
ment for any participant or beneficiary not in pay 
status by the first day of the plan year for which 
the benefit improvement takes effect, unless— 
‘‘(I) such action is accompanied by equitable 
benefit improvements in accordance with clause 
(ii) for all participants and beneficiaries whose ben-
efit commencement dates were before the first day 
of the plan year for which the benefit improvement 
for such participant or beneficiary not in pay status 
took effect; and 
‘‘(II) the plan actuary certifies that after taking 
into account such benefits improvements the plan 
is projected to avoid insolvency indefinitely under 
section 4245. 
‘‘(ii) EQUITABLE DISTRIBUTION OF BENEFIT IMPROVE-
MENTS.— 
‘‘(I) LIMITATION.—The projected value of the 
total liabilities for benefit improvements for 
participants and beneficiaries not in pay status 
by the date of the first day of the plan year in 
which the benefit improvements are proposed to 
take effect, as determined as of such date, may 
not exceed the projected value of the liabilities 
arising from benefit improvements for participants 
and beneficiaries with benefit commencement 
dates prior to the first day of such plan year, 
as so determined. 
‘‘(II) EQUITABLE DISTRIBUTION OF BENEFITS.— 
The plan sponsor shall equitably distribute any 
increase in total liabilities for benefit improve-
ments in clause (i) to some or all of the participants 
and beneficiaries whose benefit commencement 
date is before the date of the first day of the 
plan year in which the benefit improvements are 
proposed to take effect, taking into account the 
relevant factors described in subparagraph (D)(vi) 
and the extent to which the benefits of the partici-
pants and beneficiaries were suspended. 
‘‘(iii) SPECIAL RULE FOR RESUMPTIONS OF BENEFITS 
ONLY
FOR
PARTICIPANTS
IN
PAY
STATUS.—The plan
H. R. 83—675 
sponsor may increase liabilities of the plan through 
a resumption of benefits for participants and bene-
ficiaries in pay status only if the plan sponsor equitably 
distributes the value of resumed benefits to some or 
all of the participants and beneficiaries in pay status, 
taking into account the relevant factors described in 
subparagraph (D)(vi). 
‘‘(iv) 
SPECIAL
RULE
FOR
CERTAIN
BENEFIT 
INCREASES.—This subparagraph shall not apply to a 
resumption of suspended benefits or plan amendment 
which increases liabilities with respect to participants 
and beneficiaries not in pay status by the first day 
of the plan year in which the benefit improvements 
took effect which— 
‘‘(I) the Secretary of the Treasury, in consulta-
tion with the Pension Benefit Guaranty Corpora-
tion and the Secretary of Labor, determines to 
be reasonable and which provides for only de 
minimis increases in the liabilities of the plan, 
or 
‘‘(II) is required as a condition of qualification 
under part I of subchapter D of chapter 1 of sub-
title A of the Internal Revenue Code of 1986 or 
to comply with other applicable law, as determined 
by the Secretary of the Treasury. 
‘‘(v) ADDITIONAL LIMITATIONS.—Except for resump-
tions of suspended benefits described in clause (iii), 
the limitations on benefit improvements while a 
suspension of benefits is in effect under this paragraph 
shall be in addition to any other applicable limitations 
on increases in benefits imposed on a plan. 
‘‘(vi) DEFINITION OF BENEFIT IMPROVEMENT.—For 
purposes of this subparagraph, the term ‘benefit 
improvement’ means, with respect to a plan, a resump-
tion of suspended benefits, an increase in benefits, 
an increase in the rate at which benefits accrue, or 
an increase in the rate at which benefits become non-
forfeitable under the plan. 
‘‘(F) NOTICE REQUIREMENTS.— 
‘‘(i) IN GENERAL.—No suspension of benefits may 
be made pursuant to this paragraph unless notice of 
such proposed suspension has been given by the plan 
sponsor concurrently with an application for approval 
of such suspension submitted under subparagraph (G) 
to the Secretary of the Treasury to— 
‘‘(I) such plan participants and beneficiaries 
who may be contacted by reasonable efforts, 
‘‘(II) each employer who has an obligation to 
contribute (within the meaning of section 4212(a)) 
under the plan, and 
‘‘(III) each employee organization which, for 
purposes of collective bargaining, represents plan 
participants employed by such an employer. 
‘‘(ii) CONTENT OF NOTICE.—The notice under clause 
(i) shall contain— 
‘‘(I) sufficient information to enable partici-
pants and beneficiaries to understand the effect
H. R. 83—676 
of any suspensions of benefits, including an 
individualized estimate (on an annual or monthly 
basis) of such effect on each participant or bene-
ficiary, 
‘‘(II) a description of the factors considered 
by the plan sponsor in designing the benefit 
suspensions, 
‘‘(III) a statement that the application for 
approval of any suspension of benefits shall be 
available on the website of the Department of the 
Treasury and that comments on such application 
will be accepted, 
‘‘(IV) information as to the rights and remedies 
of plan participants and beneficiaries, 
‘‘(V) if applicable, a statement describing the 
appointment of a retiree representative, the date 
of appointment of such representative, identifying 
information 
about 
the 
retiree 
representative 
(including whether the representative is a plan 
trustee), and how to contact such representative, 
and 
‘‘(VI) information on how to contact the 
Department of the Treasury for further informa-
tion and assistance where appropriate. 
‘‘(iii) FORM AND MANNER.—Any notice under clause 
(i)— 
‘‘(I) shall be provided in a form and manner 
prescribed in guidance by the Secretary of the 
Treasury, in consultation with the Pension Benefit 
Guaranty Corporation and the Secretary of Labor, 
notwithstanding any other provision of law, 
‘‘(II) shall be written in a manner so as to 
be understood by the average plan participant, 
and 
‘‘(III) may be provided in written, electronic, 
or other appropriate form to the extent such form 
is reasonably accessible to persons to whom the 
notice is required to be provided. 
‘‘(iv) OTHER
NOTICE
REQUIREMENT.—Any notice 
provided under clause (i) shall fulfill the requirement 
for notice of a significant reduction in benefits 
described in section 204(h). 
‘‘(v) 
MODEL
NOTICE.—The 
Secretary 
of 
the 
Treasury, in consultation with the Pension Benefit 
Guaranty Corporation and the Secretary of Labor, shall 
in the guidance prescribed under clause (iii)(I) establish 
a model notice that a plan sponsor may use to meet 
the requirements of this subparagraph. 
‘‘(G) APPROVAL
PROCESS
BY
THE
SECRETARY
OF
THE 
TREASURY IN CONSULTATION WITH THE PENSION BENEFIT 
GUARANTY CORPORATION AND THE SECRETARY OF LABOR.— 
‘‘(i) IN GENERAL.—The plan sponsor of a plan in 
critical and declining status for a plan year that seeks 
to suspend benefits must submit an application to the 
Secretary of the Treasury for approval of the suspen-
sions of benefits. If the plan sponsor submits an
H. R. 83—677 
application for approval of the suspensions, the Sec-
retary of the Treasury, in consultation with the Pension 
Benefit Guaranty Corporation and the Secretary of 
Labor, shall approve the application upon finding that 
the plan is eligible for the suspensions and has satisfied 
the criteria of subparagraphs (C), (D), (E), and (F). 
‘‘(ii) SOLICITATION OF COMMENTS.—Not later than 
30 days after receipt of the application under clause 
(i), the Secretary of the Treasury, in consultation with 
the Pension Benefit Guaranty Corporation and the Sec-
retary of Labor, shall publish a notice in the Federal 
Register 
soliciting 
comments 
from 
contributing 
employers, employee organizations, and participants 
and beneficiaries of the plan for which an application 
was made and other interested parties. The application 
for approval of the suspension of benefits shall be 
published on the website of the Secretary of the 
Treasury. 
‘‘(iii) REQUIRED ACTION; DEEMED APPROVAL.—The 
Secretary of the Treasury, in consultation with the 
Pension Benefit Guaranty Corporation and the Sec-
retary of Labor, shall approve or deny any application 
for suspensions of benefits under this paragraph within 
225 days after the submission of such application. An 
application for suspension of benefits shall be deemed 
approved unless, within such 225 days, the Secretary 
of the Treasury notifies the plan sponsor that it has 
failed to satisfy one or more of the criteria described 
in this paragraph. If the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, rejects a plan 
sponsor’s application, the Secretary of the Treasury 
shall provide notice to the plan sponsor detailing the 
specific reasons for the rejection, including reference 
to the specific requirement not satisfied. Approval or 
denial by the Secretary of the Treasury of an applica-
tion shall be treated as a final agency action for pur-
poses of section 704 of title 5, United States Code. 
‘‘(iv) AGENCY REVIEW.—In evaluating whether the 
plan sponsor has met the criteria specified in clause 
(ii) of subparagraph (C), the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, shall review the 
plan sponsor’s consideration of factors under such 
clause. 
‘‘(v) STANDARD
FOR
ACCEPTING
PLAN
SPONSOR 
DETERMINATIONS.—In evaluating the plan sponsor’s 
application, the Secretary of the Treasury shall accept 
the plan sponsor’s determinations unless it concludes, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, that the plan 
sponsor’s determinations were clearly erroneous. 
‘‘(H) PARTICIPANT RATIFICATION PROCESS.— 
‘‘(i) IN GENERAL.—No suspension of benefits may 
take effect pursuant to this paragraph prior to a vote 
of the participants of the plan with respect to the 
suspension.
H. R. 83—678 
‘‘(ii) ADMINISTRATION OF VOTE.—Not later than 30 
days after approval of the suspension by the Secretary 
of the Treasury, in consultation with the Pension Ben-
efit Guaranty Corporation and the Secretary of Labor, 
under subparagraph (G), the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, shall administer 
a vote of participants and beneficiaries of the plan. 
Except as provided in clause (v), the suspension shall 
go into effect following the vote unless a majority of 
all participants and beneficiaries of the plan vote to 
reject the suspension. The plan sponsor may submit 
a new suspension application to the Secretary of the 
Treasury for approval in any case in which a suspen-
sion is prohibited from taking effect pursuant to a 
vote under this subparagraph. 
‘‘(iii) BALLOTS.—The plan sponsor shall provide a 
ballot for the vote (subject to approval by the Secretary 
of the Treasury, in consultation with the Pension Ben-
efit Guaranty Corporation and the Secretary of Labor) 
that includes the following: 
‘‘(I) A statement from the plan sponsor in sup-
port of the suspension. 
‘‘(II) A statement in opposition to the suspen-
sion compiled from comments received pursuant 
to subparagraph (G)(ii). 
‘‘(III) A statement that the suspension has 
been approved by the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty 
Corporation and the Secretary of Labor. 
‘‘(IV) A statement that the plan sponsor has 
determined that the plan will become insolvent 
unless the suspension takes effect. 
‘‘(V) A statement that insolvency of the plan 
could result in benefits lower than benefits paid 
under the suspension. 
‘‘(VI) A statement that insolvency of the Pen-
sion Benefit Guaranty Corporation would result 
in benefits lower than benefits paid in the case 
of plan insolvency. 
‘‘(iv) COMMUNICATION BY PLAN SPONSOR.—It is the 
sense of Congress that, depending on the size and 
resources of the plan and geographic distribution of 
the plan’s participants, the plan sponsor should take 
such steps as may be necessary to inform participants 
about proposed benefit suspensions through in-person 
meetings, telephone or internet-based communications, 
mailed information, or by other means. 
‘‘(v) SYSTEMICALLY IMPORTANT PLANS.— 
‘‘(I) IN GENERAL.—Not later than 14 days after 
a vote under this subparagraph rejecting a suspen-
sion, the Secretary of the Treasury, in consultation 
with the Pension Benefit Guaranty Corporation 
and the Secretary of Labor, shall determine 
whether the plan is a systemically important plan. 
If the Secretary of the Treasury, in consultation 
with the Pension Benefit Guaranty Corporation
H. R. 83—679 
and the Secretary of Labor, determines that the 
plan is a systemically important plan, not later 
than the end of the 90-day period beginning on 
the date the results of the vote are certified, the 
Secretary of the Treasury shall, notwithstanding 
such adverse vote— 
‘‘(aa) permit the implementation of the 
suspension proposed by the plan sponsor; or 
‘‘(bb) permit the implementation of a modi-
fication by the Secretary of the Treasury, in 
consultation with the Pension Benefit Guar-
anty Corporation and the Secretary of Labor, 
of such suspension (so long as the plan is 
projected to avoid insolvency within the 
meaning of section 4245 under such modifica-
tion). 
‘‘(II) RECOMMENDATIONS.—Not later than 30 
days after a determination by the Secretary of 
the Treasury, in consultation with the Pension 
Benefit Guaranty Corporation and the Secretary 
of Labor, that the plan is systemically important, 
the Participant and Plan Sponsor Advocate 
selected under section 4004 may submit rec-
ommendations to the Secretary of the Treasury 
with respect to the suspension or any revisions 
to the suspension. 
‘‘(III) 
SYSTEMICALLY
IMPORTANT
PLAN 
DEFINED.— 
‘‘(aa) IN GENERAL.—For purposes of this 
subparagraph, a systemically important plan 
is a plan with respect to which the Pension 
Benefit Guaranty Corporation projects the 
present value of projected financial assistance 
payments exceeds $1,000,000,000 if suspen-
sions are not implemented. 
‘‘(bb) 
INDEXING.—For 
calendar 
years 
beginning after 2015, there shall be sub-
stituted for the dollar amount specified in item 
(aa) an amount equal to the product of such 
dollar amount and a fraction, the numerator 
of which is the contribution and benefit base 
(determined under section 230 of the Social 
Security Act) for the preceding calendar year 
and the denominator of which is such contribu-
tion and benefit base for calendar year 2014. 
If the amount otherwise determined under this 
item is not a multiple of $1,000,000, such 
amount shall be rounded to the next lowest 
multiple of $1,000,000. 
‘‘(vi) FINAL AUTHORIZATION TO SUSPEND.—In any 
case in which a suspension goes into effect following 
a vote pursuant to clause (ii) (or following a determina-
tion under clause (v) that the plan is a systemically 
important plan), the Secretary of the Treasury, in con-
sultation with the Pension Benefit Guaranty Corpora-
tion and the Secretary of Labor, shall issue a final 
authorization to suspend with respect to the suspension
H. R. 83—680 
not later than 7 days after such vote (or, in the case 
of a suspension that goes into effect under clause (v), 
at a time sufficient to allow the implementation of 
the suspension prior to the end of the 90-day period 
described in clause (v)(I)). 
‘‘(I) JUDICIAL REVIEW.— 
‘‘(i) DENIAL OF APPLICATION.—An action by the plan 
sponsor challenging the denial of an application for 
suspension of benefits by the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, may only be 
brought following such denial. 
‘‘(ii) APPROVAL OF SUSPENSION OF BENEFITS.— 
‘‘(I) TIMING OF ACTION.—An action challenging 
a suspension of benefits under this paragraph may 
only be brought following a final authorization to 
suspend by the Secretary of the Treasury, in con-
sultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, under 
subparagraph (H)(vi). 
‘‘(II) STANDARDS OF REVIEW.— 
‘‘(aa) IN GENERAL.—A court shall review 
an action challenging a suspension of benefits 
under this paragraph in accordance with sec-
tion 706 of title 5, United States Code. 
‘‘(bb) TEMPORARY
INJUNCTION.—A court 
reviewing an action challenging a suspension 
of benefits under this paragraph may not 
grant a temporary injunction with respect to 
such suspension unless the court finds a clear 
and convincing likelihood that the plaintiff will 
prevail on the merits of the case. 
‘‘(iii) RESTRICTED CAUSE OF ACTION.—A participant 
or beneficiary affected by a benefit suspension under 
this paragraph shall not have a cause of action under 
this title. 
‘‘(iv) LIMITATION
ON
ACTION
TO
SUSPEND
BENE-
FITS.—No action challenging a suspension of benefits 
following the final authorization to suspend or the 
denial of an application for suspension of benefits 
pursuant to this paragraph may be brought after one 
year after the earliest date on which the plaintiff 
acquired or should have acquired actual knowledge 
of the existence of such cause of action. 
‘‘(J) SPECIAL
RULE
FOR
EMERGENCE
FROM
CRITICAL 
STATUS.—A plan certified to be in critical and declining 
status pursuant to projections made under subsection (b)(3) 
for which a suspension of benefits has been made by the 
plan sponsor pursuant to this paragraph shall not emerge 
from critical status under paragraph (4)(B), until such time 
as— 
‘‘(i) the plan is no longer certified to be in critical 
or endangered status under paragraphs (1) and (2) 
of subsection (b), and 
‘‘(ii) the plan is projected to avoid insolvency under 
section 4245.’’. 
(7) RULES RELATING TO WITHDRAWAL LIABILITY.—
H. R. 83—681 
(A) 
BENEFIT
SUSPENSIONS
DISREGARDED.—Section 
305(g)(1) of the Employee Retirement Income Security Act 
of 1974, as added by section 109, is further amended by 
inserting ‘‘or benefit reductions or suspensions while in 
critical and declining status under subsection (e)(9)), unless 
the withdrawal occurs more than ten years after the effec-
tive date of a benefit suspension by a plan in critical 
and declining status,’’ after ‘‘benefit reductions under sub-
section (e)(8) or (f)’’. 
(B) AUTHORITY OF PLAN TO SUBORDINATE WITHDRAWAL 
LIABILITY CLAIMS.—Section 4219(d) of such Act (29 U.S.C. 
1399(d)) is amended by striking the period at the end 
and inserting ‘‘or to any arrangement relating to with-
drawal liability involving the plan.’’. 
(C) CIVIL ACTIONS.—Section 4003(f)(1) of such Act (29 
U.S.C. 1303)(f)(1)) is amended by inserting ‘‘plan sponsor,’’ 
before ‘‘fiduciary’’. 
(8) GUIDANCE.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Corporation 
and the Secretary of Labor, shall publish appropriate guidance 
to implement section 305(e)(9) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1085(e)(9)). 
(b) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 
(1) GENERAL RULE FOR PLAN IN CRITICAL AND DECLINING 
STATUS.—Section 432(a) of the Internal Revenue Code of 1986 
is amended— 
(A) in paragraph (1)(B), by striking ‘‘and’’ at the end; 
(B) in paragraph (2)(B), by striking the period at the 
end and inserting ‘‘, and’’; and 
(C) by adding at the end the following: 
‘‘(3) if the plan is in critical and declining status— 
‘‘(A) the requirements of paragraph (2) shall apply 
to the plan; and 
‘‘(B) the plan sponsor may, by plan amendment, sus-
pend benefits in accordance with the requirements of sub-
section (e)(9).’’. 
(2) CRITICAL
AND
DECLINING
STATUS
DEFINED.—Section 
432(b) of the Internal Revenue Code of 1986, as amended 
by sections 102 and 104, is further amended by adding at 
the end the following: 
‘‘(6) CRITICAL AND DECLINING STATUS.—For purposes of this 
section, a plan in critical status shall be treated as in critical 
and declining status if the plan is described in one or more 
of subparagraphs (A), (B), (C), and (D) of paragraph (2) and 
the plan is projected to become insolvent within the meaning 
of section 418E during the current plan year or any of the 
14 succeeding plan years (19 succeeding plan years if the plan 
has a ratio of inactive participants to active participants that 
exceeds 2 to 1 or if the funded percentage of the plan is 
less than 80 percent).’’. 
(3) ANNUAL CERTIFICATION.—Section 432(b)(3)(A)(i) of the 
Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘and whether’’ and inserting ‘‘, 
whether’’, and
H. R. 83—682 
(B) by inserting ‘‘, and whether or not the plan is 
or will be in critical and declining status for such plan 
year’’ before ‘‘, and’’ at the end. 
(4) PROJECTIONS
OF
ASSETS
AND
LIABILITIES.—Section 
432(b)(3)(B) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following: 
‘‘(iv) PROJECTIONS
OF
CRITICAL
AND
DECLINING 
STATUS.—In determining whether a plan is in critical 
and declining status as described in subsection (e)(9), 
clauses (i), (ii), and (iii) shall apply, except that— 
‘‘(I) if reasonable, the plan actuary shall 
assume that each contributing employer in compli-
ance continues to comply through the end of the 
rehabilitation period or such later time as provided 
in subsection (e)(3)(A)(ii) with the terms of the 
rehabilitation plan that correspond to the schedule 
adopted or imposed under subsection (e), and 
‘‘(II) the plan actuary shall take into account 
any suspensions of benefits described in subsection 
(e)(9) adopted in a prior plan year that are still 
in effect.’’. 
(5) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN 
CRITICAL AND DECLINING STATUS.—Section 432(e) of the Internal 
Revenue Code of 1986 (as amended by section 109) is amended 
by inserting after paragraph (8) the following: 
‘‘(9) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN 
CRITICAL AND DECLINING STATUS.— 
‘‘(A) IN GENERAL.—Notwithstanding section 411(d)(6) 
and subject to subparagraphs (B) through (I), the plan 
sponsor of a plan in critical and declining status may, 
by plan amendment, suspend benefits which the sponsor 
deems appropriate. 
‘‘(B) SUSPENSION OF BENEFITS.— 
‘‘(i) SUSPENSION OF BENEFITS DEFINED.—For pur-
poses of this subsection, the term ‘suspension of bene-
fits’ means the temporary or permanent reduction of 
any current or future payment obligation of the plan 
to any participant or beneficiary under the plan, 
whether or not in pay status at the time of the suspen-
sion of benefits. 
‘‘(ii) LENGTH OF SUSPENSIONS.—Any suspension of 
benefits made under subparagraph (A) shall remain 
in effect until the earlier of when the plan sponsor 
provides benefit improvements in accordance with 
subparagraph (E) or the suspension of benefits expires 
by its own terms. 
‘‘(iii) NO LIABILITY.—The plan shall not be liable 
for any benefit payments not made as a result of a 
suspension of benefits under this paragraph. 
‘‘(iv) APPLICABILITY.—For purposes of this para-
graph, all references to suspensions of benefits, 
increases in benefits, or resumptions of suspended 
benefits with respect to participants shall also apply 
with respect to benefits of beneficiaries or alternative 
payees of participants. 
‘‘(v) RETIREE REPRESENTATIVE.—
H. R. 83—683 
‘‘(I) IN GENERAL.—In the case of a plan with 
10,000 or more participants, not later than 60 
days prior to the plan sponsor submitting an 
application to suspend benefits, the plan sponsor 
shall select a participant of the plan in pay status 
to act as a retiree representative. The retiree rep-
resentative shall advocate for the interests of the 
retired and deferred vested participants and bene-
ficiaries of the plan throughout the suspension 
approval process. 
‘‘(II) REASONABLE EXPENSES FROM PLAN.—The 
plan shall provide for reasonable expenses by the 
retiree representative, including reasonable legal 
and actuarial support, commensurate with the 
plan’s size and funded status. 
‘‘(III) SPECIAL RULE RELATING TO FIDUCIARY 
STATUS.—Duties performed pursuant to subclause 
(I) shall not be subject to section 4975. The pre-
ceding sentence shall not apply to those duties 
associated with an application to suspend benefits 
pursuant to subparagraph (G) that are performed 
by the retiree representative who is also a plan 
trustee. 
‘‘(C) CONDITIONS FOR SUSPENSIONS.—The plan sponsor 
of a plan in critical and declining status for a plan year 
may suspend benefits only if the following conditions are 
met: 
‘‘(i) Taking into account the proposed suspensions 
of benefits (and, if applicable, a proposed partition 
of the plan under section 4233 of the Employee Retire-
ment Income Security Act of 1974), the plan actuary 
certifies that the plan is projected to avoid insolvency 
within the meaning of section 418E, assuming the 
suspensions of benefits continue until the suspensions 
of benefits expire by their own terms or if no such 
expiration date is set, indefinitely. 
‘‘(ii) The plan sponsor determines, in a written 
record to be maintained throughout the period of the 
benefit suspension, that the plan is still projected to 
become insolvent unless benefits are suspended under 
this paragraph, although all reasonable measures to 
avoid insolvency have been taken (and continue to 
be taken during the period of the benefit suspension). 
In its determination, the plan sponsor may take into 
account factors including the following: 
‘‘(I) Current and past contribution levels. 
‘‘(II) Levels of benefit accruals (including any 
prior reductions in the rate of benefit accruals). 
‘‘(III) Prior reductions (if any) of adjustable 
benefits. 
‘‘(IV) Prior suspensions (if any) of benefits 
under this subsection. 
‘‘(V) The impact on plan solvency of the sub-
sidies and ancillary benefits available to active 
participants.
H. R. 83—684 
‘‘(VI) Compensation levels of active partici-
pants relative to employees in the participants’ 
industry generally. 
‘‘(VII) Competitive and other economic factors 
facing contributing employers. 
‘‘(VIII) The impact of benefit and contribution 
levels on retaining active participants and bar-
gaining groups under the plan. 
‘‘(IX) The impact of past and anticipated con-
tribution increases under the plan on employer 
attrition and retention levels. 
‘‘(X) Measures undertaken by the plan sponsor 
to retain or attract contributing employers. 
‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any suspensions 
of benefits made by a plan sponsor pursuant to this para-
graph shall be subject to the following limitations: 
‘‘(i) The monthly benefit of any participant or bene-
ficiary may not be reduced below 110 percent of the 
monthly benefit which is guaranteed by the Pension 
Benefit Guaranty Corporation under section 4022A of 
the Employee Retirement Income Security Act of 1974 
on the date of the suspension. 
‘‘(ii)(I) In the case of a participant or beneficiary 
who has attained 75 years of age as of the effective 
date of the suspension, not more than the applicable 
percentage of the maximum suspendable benefits of 
such participant or beneficiary may be suspended 
under this paragraph. 
‘‘(II) For purposes of subclause (I), the maximum 
suspendable benefits of a participant or beneficiary 
is the portion of the benefits of such participant or 
beneficiary that would be suspended pursuant to this 
paragraph without regard to this clause; 
‘‘(III) For purposes of subclause (I), the applicable 
percentage is a percentage equal to the quotient 
obtained by dividing— 
‘‘(aa) the number of months during the period 
beginning with the month after the month in which 
occurs the effective date of the suspension and 
ending with the month during which the partici-
pant or beneficiary attains the age of 80, by 
‘‘(bb) 60 months. 
‘‘(iii) No benefits based on disability (as defined 
under the plan) may be suspended under this para-
graph. 
‘‘(iv) Any suspensions of benefits, in the aggregate 
(and, if applicable, considered in combination with a 
partition of the plan under section 4233 of the 
Employee Retirement Income Security Act of 1974), 
shall be reasonably estimated to achieve, but not mate-
rially exceed, the level that is necessary to avoid insol-
vency. 
‘‘(v) In any case in which a suspension of benefits 
with respect to a plan is made in combination with 
a partition of the plan under section 4233 of the 
Employee Retirement Income Security Act of 1974,
H. R. 83—685 
the suspension of benefits may not take effect prior 
to the effective date of such partition. 
‘‘(vi) Any suspensions of benefits shall be equitably 
distributed across the participant and beneficiary popu-
lation, taking into account factors, with respect to 
participants and beneficiaries and their benefits, that 
may include one or more of the following: 
‘‘(I) Age and life expectancy. 
‘‘(II) Length of time in pay status. 
‘‘(III) Amount of benefit. 
‘‘(IV) Type of benefit: survivor, normal retire-
ment, early retirement. 
‘‘(V) Extent to which participant or beneficiary 
is receiving a subsidized benefit. 
‘‘(VI) Extent to which participant or bene-
ficiary 
has 
received 
post-retirement 
benefit 
increases. 
‘‘(VII) History of benefit increases and reduc-
tions. 
‘‘(VIII) 
Years 
to 
retirement 
for 
active 
employees. 
‘‘(IX) Any discrepancies between active and 
retiree benefits. 
‘‘(X) Extent to which active participants are 
reasonably likely to withdraw support for the plan, 
accelerating employer withdrawals from the plan 
and increasing the risk of additional benefit reduc-
tions for participants in and out of pay status. 
‘‘(XI) Extent to which benefits are attributed 
to service with an employer that failed to pay 
its full withdrawal liability. 
‘‘(vii) In the case of a plan that includes the bene-
fits described in clause (III), benefits suspended under 
this paragraph shall— 
‘‘(I) first, be applied to the maximum extent 
permissible to benefits attributable to a partici-
pant’s service for an employer which withdrew 
from the plan and failed to pay (or is delinquent 
with respect to paying) the full amount of its with-
drawal liability under section 4201(b)(1) of the 
Employee Retirement Income Security Act of 1974 
or an agreement with the plan, 
‘‘(II) second, except as provided by subclause 
(III), be applied to all other benefits that may 
be suspended under this paragraph, and 
‘‘(III) third, be applied to benefits under a 
plan that are directly attributable to a participant’s 
service with any employer which has, prior to the 
date of enactment of the Multiemployer Pension 
Reform Act of 2014— 
‘‘(aa) withdrawn from the plan in a com-
plete withdrawal under section 4203 of the 
Employee Retirement Income Security Act of 
1974 and has paid the full amount of the 
employer’s withdrawal liability under section 
4201(b)(1) of such Act or an agreement with 
the plan, and
H. R. 83—687 
distributes the value of resumed benefits to some or 
all of the participants and beneficiaries in pay status, 
taking into account the relevant factors described in 
subparagraph (D)(vi). 
‘‘(iv) 
SPECIAL
RULE
FOR
CERTAIN
BENEFIT 
INCREASES.—This subparagraph shall not apply to a 
resumption of suspended benefits or plan amendment 
which increases liabilities with respect to participants 
and beneficiaries not in pay status by the first day 
of the plan year in which the benefit improvements 
took effect which— 
‘‘(I) the Secretary of the Treasury, in consulta-
tion with the Pension Benefit Guaranty Corpora-
tion and the Secretary of Labor, determines to 
be reasonable and which provides for only de 
minimis increases in the liabilities of the plan, 
or 
‘‘(II) is required as a condition of qualification 
under part I of subchapter D of chapter 1 of sub-
title A or to comply with other applicable law, 
as determined by the Secretary of the Treasury. 
‘‘(v) ADDITIONAL LIMITATIONS.—Except for resump-
tions of suspended benefits described in clause (iii), 
the limitations on benefit improvements while a 
suspension of benefits is in effect under this paragraph 
shall be in addition to any other applicable limitations 
on increases in benefits imposed on a plan. 
‘‘(vi) DEFINITION OF BENEFIT IMPROVEMENT.—For 
purposes of this subparagraph, the term ‘benefit 
improvement’ means, with respect to a plan, a resump-
tion of suspended benefits, an increase in benefits, 
an increase in the rate at which benefits accrue, or 
an increase in the rate at which benefits become non-
forfeitable under the plan. 
‘‘(F) NOTICE REQUIREMENTS.— 
‘‘(i) IN GENERAL.—No suspension of benefits may 
be made pursuant to this paragraph unless notice of 
such proposed suspension has been given by the plan 
sponsor concurrently with an application for approval 
of such suspension submitted under subparagraph (G) 
to the Secretary of the Treasury to— 
‘‘(I) such plan participants and beneficiaries 
who may be contacted by reasonable efforts, 
‘‘(II) each employer who has an obligation to 
contribute (within the meaning of section 4212(a) 
of the Employee Retirement Income Security Act 
of 1974) under the plan, and 
‘‘(III) each employee organization which, for 
purposes of collective bargaining, represents plan 
participants employed by such an employer. 
‘‘(ii) CONTENT OF NOTICE.—The notice under clause 
(i) shall contain— 
‘‘(I) sufficient information to enable partici-
pants and beneficiaries to understand the effect 
of any suspensions of benefits, including an 
individualized estimate (on an annual or monthly
H. R. 83—688 
basis) of such effect on each participant or bene-
ficiary, 
‘‘(II) a description of the factors considered 
by the plan sponsor in designing the benefit 
suspensions, 
‘‘(III) a statement that the application for 
approval of any suspension of benefits shall be 
available on the website of the Department of the 
Treasury and that comments on such application 
will be accepted, 
‘‘(IV) information as to the rights and remedies 
of plan participants and beneficiaries, 
‘‘(V) if applicable, a statement describing the 
appointment of a retiree representative, the date 
of appointment of such representative, identifying 
information 
about 
the 
retiree 
representative 
(including whether the representative is a plan 
trustee), and how to contact such representative, 
and 
‘‘(VI) information on how to contact the 
Department of the Treasury for further informa-
tion and assistance where appropriate. 
‘‘(iii) FORM AND MANNER.—Any notice under clause 
(i)— 
‘‘(I) shall be provided in a form and manner 
prescribed in guidance by the Secretary of the 
Treasury, in consultation with the Pension Benefit 
Guaranty Corporation and the Secretary of Labor, 
notwithstanding any other provision of law, 
‘‘(II) shall be written in a manner so as to 
be understood by the average plan participant, 
and 
‘‘(III) may be provided in written, electronic, 
or other appropriate form to the extent such form 
is reasonably accessible to persons to whom the 
notice is required to be provided. 
‘‘(iv) OTHER
NOTICE
REQUIREMENT.—Any notice 
provided under clause (i) shall fulfill the requirement 
for notice of a significant reduction in benefits 
described in section 4980F. 
‘‘(v) 
MODEL
NOTICE.—The 
Secretary 
of 
the 
Treasury, in consultation with the Pension Benefit 
Guaranty Corporation and the Secretary of Labor, shall 
in the guidance prescribed under clause (iii)(I) establish 
a model notice that a plan sponsor may use to meet 
the requirements of this subparagraph. 
‘‘(G) APPROVAL
PROCESS
BY
THE
SECRETARY
OF
THE 
TREASURY IN CONSULTATION WITH THE PENSION BENEFIT 
GUARANTY CORPORATION AND THE SECRETARY OF LABOR.— 
‘‘(i) IN GENERAL.—The plan sponsor of a plan in 
critical and declining status for a plan year that seeks 
to suspend benefits must submit an application to the 
Secretary of the Treasury for approval of the suspen-
sions of benefits. If the plan sponsor submits an 
application for approval of the suspensions, the Sec-
retary of the Treasury shall approve, in consultation 
with the Pension Benefit Guaranty Corporation and
H. R. 83—689 
the Secretary of Labor, the application upon finding 
that the plan is eligible for the suspensions and has 
satisfied the criteria of subparagraphs (C), (D), (E), 
and (F). 
‘‘(ii) SOLICITATION OF COMMENTS.—Not later than 
30 days after receipt of the application under clause 
(i), the Secretary of the Treasury, in consultation with 
the Pension Benefit Guaranty Corporation and the Sec-
retary of Labor, shall publish a notice in the Federal 
Register 
soliciting 
comments 
from 
contributing 
employers, employee organizations, and participants 
and beneficiaries of the plan for which an application 
was made and other interested parties. The application 
for approval of the suspension of benefits shall be 
published on the website of the Department of the 
Treasury. 
‘‘(iii) REQUIRED ACTION; DEEMED APPROVAL.—The 
Secretary of the Treasury, in consultation with the 
Pension Benefit Guaranty Corporation and the Sec-
retary of Labor, shall approve or deny any application 
for suspensions of benefits under this paragraph within 
225 days after the submission of such application. An 
application for suspension of benefits shall be deemed 
approved unless, within such 225 days, the Secretary 
of the Treasury notifies the plan sponsor that it has 
failed to satisfy one or more of the criteria described 
in this paragraph. If the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, rejects a plan 
sponsor’s application, the Secretary of the Treasury 
shall provide notice to the plan sponsor detailing the 
specific reasons for the rejection, including reference 
to the specific requirement not satisfied. Approval or 
denial by the Secretary of the Treasury, in consultation 
with the Pension Benefit Guaranty Corporation and 
the Secretary of Labor, of an application shall be 
treated as final agency action for purposes of section 
704 of title 5, United States Code. 
‘‘(iv) AGENCY REVIEW.—In evaluating whether the 
plan sponsor has met the criteria specified in clause 
(ii) of subparagraph (C), the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, shall review the 
plan sponsor’s consideration of factors under such 
clause. 
‘‘(v) STANDARD
FOR
ACCEPTING
PLAN
SPONSOR 
DETERMINATIONS.—In evaluating the plan sponsor’s 
application, the Secretary of the Treasury shall accept 
the plan sponsor’s determinations unless it concludes, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, that the plan 
sponsor’s determinations were clearly erroneous. 
‘‘(H) PARTICIPANT RATIFICATION PROCESS.— 
‘‘(i) IN GENERAL.—No suspension of benefits may 
take effect pursuant to this paragraph prior to a vote 
of the participants of the plan with respect to the 
suspension.
H. R. 83—690 
‘‘(ii) ADMINISTRATION OF VOTE.—Not later than 30 
days after approval of the suspension by the Secretary 
of the Treasury, in consultation with the Pension Ben-
efit Guaranty Corporation and the Secretary of Labor, 
under subparagraph (G), the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Cor-
poration and the Secretary of Labor, shall administer 
a vote of participants and beneficiaries of the plan. 
Except as provided in clause (v), the suspension shall 
go into effect following the vote unless a majority of 
all participants and beneficiaries of the plan vote to 
reject the suspension. The plan sponsor may submit 
a new suspension application to the Secretary of the 
Treasury for approval in any case in which a suspen-
sion is prohibited from taking effect pursuant to a 
vote under this subparagraph. 
‘‘(iii) BALLOTS.—The plan sponsor shall provide a 
ballot for the vote (subject to approval by the Secretary 
of the Treasury, in consultation with the Pension Ben-
efit Guaranty Corporation and the Secretary of Labor) 
that includes the following: 
‘‘(I) A statement from the plan sponsor in sup-
port of the suspension. 
‘‘(II) A statement in opposition to the suspen-
sion compiled from comments received pursuant 
to subparagraph (G)(ii). 
‘‘(III) A statement that the suspension has 
been approved by the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty 
Corporation and the Secretary of Labor. 
‘‘(IV) A statement that the plan sponsor has 
determined that the plan will become insolvent 
unless the suspension takes effect. 
‘‘(V) A statement that insolvency of the plan 
could result in benefits lower than benefits paid 
under the suspension. 
‘‘(VI) A statement that insolvency of the Pen-
sion Benefit Guaranty Corporation would result 
in benefits lower than benefits paid in the case 
of plan insolvency. 
‘‘(iv) COMMUNICATION BY PLAN SPONSOR.—It is the 
sense of Congress that, depending on the size and 
resources of the plan and geographic distribution of 
the plan’s participants, the plan sponsor should take 
such steps as may be necessary to inform participants 
about proposed benefit suspensions through in-person 
meetings, telephone or internet-based communications, 
mailed information, or by other means. 
‘‘(v) SYSTEMICALLY IMPORTANT PLANS.— 
‘‘(I) IN GENERAL.—Not later than 14 days after 
a vote under this subparagraph rejecting a suspen-
sion, the Secretary of the Treasury, in consultation 
with the Pension Benefit Guaranty Corporation 
and the Secretary of Labor, shall determine 
whether the plan is a systemically important plan. 
If the Secretary of the Treasury, in consultation 
with the Pension Benefit Guaranty Corporation
H. R. 83—691 
and the Secretary of Labor, determines that the 
plan is a systemically important plan, not later 
than the end of the 90-day period beginning on 
the date the results of the vote are certified, the 
Secretary of the Treasury shall, notwithstanding 
such adverse vote— 
‘‘(aa) permit the implementation of the 
suspension proposed by the plan sponsor; or 
‘‘(bb) permit the implementation of a modi-
fication by the Secretary of the Treasury, in 
consultation with the Pension Benefit Guar-
anty Corporation and the Secretary of Labor, 
of such suspension (so long as the plan is 
projected to avoid insolvency within the 
meaning of section 4245 of the Employee 
Retirement Income Security Act of 1974 under 
such modification). 
‘‘(II) RECOMMENDATIONS.—Not later than 30 
days after a determination by the Secretary of 
the Treasury, in consultation with the Pension 
Benefit Guaranty Corporation and the Secretary 
of Labor, that the plan is systemically important, 
the Participant and Plan Sponsor Advocate 
selected under section 4004 of the Employee 
Retirement Income Security Act of 1974 may 
submit recommendations to the Secretary of the 
Treasury with respect to the suspension or any 
revisions to the suspension. 
‘‘(III) 
SYSTEMICALLY
IMPORTANT
PLAN 
DEFINED.— 
‘‘(aa) IN GENERAL.—For purposes of this 
subparagraph, a systemically important plan 
is a plan with respect to which the Pension 
Benefit Guaranty Corporation projects the 
present value of projected financial assistance 
payments exceeds $1,000,000,000 if suspen-
sions are not implemented. 
‘‘(bb) 
INDEXING.—For 
calendar 
years 
beginning after 2015, there shall be sub-
stituted for the dollar amount specified in item 
(aa) an amount equal to the product of such 
dollar amount and a fraction, the numerator 
of which is the contribution and benefit base 
(determined under section 230 of the Social 
Security Act) for the preceding calendar year 
and the denominator of which is such contribu-
tion and benefit base for calendar year 2014. 
If the amount otherwise determined under this 
item is not a multiple of $1,000,000, such 
amount shall be rounded to the next lowest 
multiple of $1,000,000. 
‘‘(vi) FINAL AUTHORIZATION TO SUSPEND.—In any 
case in which a suspension goes into effect following 
a vote pursuant to clause (ii) (or following a determina-
tion under clause (v) that the plan is a systemically
H. R. 83—693 
‘‘(i) the plan is no longer certified to be in critical 
or endangered status under paragraphs (1) and (2) 
of subsection (b), and 
‘‘(ii) the plan is projected to avoid insolvency under 
section 418E.’’. 
(6) RULE
RELATING
TO
WITHDRAWAL
LIABILITY.—Section 
432(g)(1) of the Internal Revenue Code of 1986, as added by 
section 109, is further amended by inserting ‘‘, or benefit reduc-
tions or suspensions while in critical and declining status under 
subsection (e)(9)), unless the withdrawal occurs more than ten 
years after the effective date of a benefit suspension by a 
plan in critical and declining status,’’ after ‘‘benefit reductions 
under subsection (e)(8) or (f)’’. 
(7) GUIDANCE.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Treasury, 
in consultation with the Pension Benefit Guaranty Corporation 
and the Secretary of Labor, shall publish appropriate guidance 
to implement section 432(e)(9) of the Internal Revenue Code 
of 1986. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
DIVISION P—OTHER RETIREMENT-RELATED 
MODIFICATIONS 
SEC. 1. SUBSTANTIAL CESSATION OF OPERATIONS. 
(a) IN GENERAL.—Subsection (e) of section 4062 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1362) is 
amended to read as follows: 
‘‘(e) TREATMENT OF SUBSTANTIAL CESSATION OF OPERATIONS.— 
‘‘(1) GENERAL
RULE.—Except as provided in paragraphs 
(3) and (4), if there is a substantial cessation of operations 
at a facility in any location, the employer shall be treated 
with respect to any single employer plan established and main-
tained by the employer covering participants at such facility 
as if the employer were a substantial employer under a plan 
under which more than one employer makes contributions and 
the provisions of sections 4063, 4064, and 4065 shall apply. 
‘‘(2) SUBSTANTIAL CESSATION OF OPERATIONS.—For purposes 
of this subsection: 
‘‘(A) IN GENERAL.—The term ‘substantial cessation of 
operations’ means a permanent cessation of operations at 
a facility which results in a workforce reduction of a 
number of eligible employees at the facility equivalent to 
more than 15 percent of the number of all eligible 
employees of the employer, determined immediately before 
the earlier of— 
‘‘(i) the date of the employer’s decision to imple-
ment such cessation, or 
‘‘(ii) in the case of a workforce reduction which 
includes 1 or more eligible employees described in para-
graph (6)(B), the earliest date on which any such 
eligible employee was separated from employment. 
‘‘(B) WORKFORCE
REDUCTION.—Subject to subpara-
graphs (C) and (D), the term ‘workforce reduction’ means 
the number of eligible employees at a facility who are
H. R. 83—694 
separated from employment by reason of the permanent 
cessation of operations of the employer at the facility. 
‘‘(C) 
RELOCATION
OF
WORKFORCE.—An 
eligible 
employee separated from employment at a facility shall 
not be taken into account in computing a workforce reduc-
tion if, within a reasonable period of time, the employee 
is replaced by the employer, at the same or another facility 
located in the United States, by an employee who is a 
citizen or resident of the United States. 
‘‘(D) DISPOSITIONS.—If, whether by reason of a sale 
or other disposition of the assets or stock of a contributing 
sponsor (or any member of the same controlled group as 
such a sponsor) of the plan relating to operations at a 
facility 
or 
otherwise, 
an 
employer 
(the 
‘transferee 
employer’) other than the employer which experiences the 
substantial 
cessation 
of 
operations 
(the 
‘transferor 
employer’) conducts any portion of such operations, then— 
‘‘(i) an eligible employee separated from employ-
ment with the transferor employer at the facility shall 
not be taken into account in computing a workforce 
reduction if— 
‘‘(I) within a reasonable period of time, the 
employee is replaced by the transferee employer 
by an employee who is a citizen or resident of 
the United States; and 
‘‘(II) in the case of an eligible employee who 
is a participant in a single employer plan main-
tained by the transferor employer, the transferee 
employer, within a reasonable period of time, 
maintains a single employer plan which includes 
the assets and liabilities attributable to the 
accrued benefit of the eligible employee at the 
time of separation from employment with the 
transferor employer; and 
‘‘(ii) an eligible employee who continues to be 
employed at the facility by the transferee employer 
shall not be taken into account in computing a 
workforce reduction if— 
‘‘(I) the eligible employee is not a participant 
in a single employer plan maintained by the trans-
feror employer, or 
‘‘(II) in any other case, the transferee 
employer, within a reasonable period of time, 
maintains a single employer plan which includes 
the assets and liabilities attributable to the 
accrued benefit of the eligible employee at the 
time of separation from employment with the 
transferor employer. 
‘‘(3) EXEMPTION FOR PLANS WITH LIMITED UNDERFUNDING.— 
Paragraph (1) shall not apply with respect to a single employer 
plan if, for the plan year preceding the plan year in which 
the cessation occurred— 
‘‘(A) there were fewer than 100 participants with 
accrued benefits under the plan as of the valuation date 
of the plan for the plan year (as determined under section 
303(g)(2)); or
H. R. 83—695 
‘‘(B) the ratio of the market value of the assets of 
the plan to the funding target of the plan for the plan 
year was 90 percent or greater. 
‘‘(4) ELECTION TO MAKE ADDITIONAL CONTRIBUTIONS TO SAT-
ISFY LIABILITY.— 
‘‘(A) IN GENERAL.—An employer may elect to satisfy 
the employer’s liability with respect to a plan by reason 
of paragraph (1) by making additional contributions to 
the plan in the amount determined under subparagraph 
(B) for each plan year in the 7-plan-year period beginning 
with the plan year in which the cessation occurred. Any 
such additional contribution for a plan year shall be in 
addition to any minimum required contribution under sec-
tion 303 for such plan year and shall be paid not later 
than the earlier of— 
‘‘(i) the due date for the minimum required con-
tribution for such year under section 303(j); or 
‘‘(ii) in the case of the first such contribution, the 
date that is 1 year after the date on which the employer 
notifies the Corporation of the substantial cessation 
of operations or the date the Corporation determines 
a substantial cessation of operations has occurred, and 
in the case of subsequent contributions, the same date 
in each succeeding year. 
‘‘(B) AMOUNT DETERMINED.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(iii), the amount determined under this subparagraph 
with respect to each plan year in the 7-plan-year period 
is the product of— 
‘‘(I) 1⁄7 of the unfunded vested benefits deter-
mined under section 4006(a)(3)(E) as of the valu-
ation date of the plan (as determined under section 
303(g)(2)) for the plan year preceding the plan 
year in which the cessation occurred; and 
‘‘(II) the reduction fraction. 
‘‘(ii) REDUCTION FRACTION.—For purposes of clause 
(i), the reduction fraction of a single employer plan 
is equal to— 
‘‘(I) the number of participants with accrued 
benefits in the plan who were included in com-
puting the workforce reduction under paragraph 
(2)(B) as a result of the cessation of operations 
at the facility; divided by 
‘‘(II) the number of eligible employees of the 
employer who are participants with accrued bene-
fits in the plan, determined as of the same date 
the determination under paragraph (2)(A) is made. 
‘‘(iii) LIMITATION.—The additional contribution 
under this subparagraph for any plan year shall not 
exceed the excess, if any, of— 
‘‘(I) 25 percent of the difference between the 
market value of the assets of the plan and the 
funding target of the plan for the preceding plan 
year; over 
‘‘(II) the minimum required contribution under 
section 303 for the plan year.
H. R. 83—696 
‘‘(C) PERMITTED CESSATION OF ANNUAL INSTALLMENTS 
WHEN
PLAN
BECOMES
SUFFICIENTLY
FUNDED.—An 
employer’s obligation to make additional contributions 
under this paragraph shall not apply to— 
‘‘(i) the first plan year (beginning on or after the 
first day of the plan year in which the cessation occurs) 
for which the ratio of the market value of the assets 
of the plan to the funding target of the plan for the 
plan year is 90 percent or greater, or 
‘‘(ii) any plan year following such first plan year. 
‘‘(D) COORDINATION WITH FUNDING WAIVERS.— 
‘‘(i) IN GENERAL.—If the Secretary of the Treasury 
issues a funding waiver under section 302(c) with 
respect to the plan for a plan year in the 7-plan- 
year period under subparagraph (A), the additional 
contribution with respect to such plan year shall be 
permanently waived. 
‘‘(ii) NOTICE.—An employer maintaining a plan 
with respect to which such a funding waiver has been 
issued or a request for such a funding waiver is 
pending shall provide notice to the Secretary of the 
Treasury, in such form and at such time as the Sec-
retary of the Treasury shall provide, of a cessation 
of operations to which paragraph (1) applies. 
‘‘(E) ENFORCEMENT.— 
‘‘(i) NOTICE.—An employer making the election 
under this paragraph shall provide notice to the Cor-
poration, in accordance with rules prescribed by the 
Corporation, of— 
‘‘(I) such election, not later than 30 days after 
the earlier of the date the employer notifies the 
Corporation of the substantial cessation of oper-
ations or the date the Corporation determines a 
substantial cessation of operations has occurred; 
‘‘(II) the payment of each additional contribu-
tion, not later than 10 days after such payment; 
‘‘(III) any failure to pay the additional con-
tribution in the full amount for any year in the 
7-plan-year period, not later than 10 days after 
the due date for such payment; 
‘‘(IV) the waiver under subparagraph (D)(i) of 
the obligation to make an additional contribution 
for any year, not later than 30 days after the 
funding waiver described in such subparagraph 
is granted; and 
‘‘(V) the cessation of any obligation to make 
additional contributions under subparagraph (C), 
not later than 10 days after the due date for pay-
ment of the additional contribution for the first 
plan year to which such cessation applies. 
‘‘(ii) ACCELERATION OF LIABILITY TO THE PLAN FOR 
FAILURE TO PAY.—If an employer fails to pay the addi-
tional contribution in the full amount for any year 
in the 7-plan-year period by the due date for such 
payment, the employer shall, as of such date, be liable 
to the plan in an amount equal to the balance which 
remains unpaid as of such date of the aggregate
H. R. 83—697 
amount of additional contributions required to be paid 
by the employer during such 7-year-plan period. The 
Corporation may waive or settle the liability described 
in the preceding sentence, at the discretion of the 
Corporation. 
‘‘(iii) CIVIL ACTION.—The Corporation may bring 
a civil action in the district courts of the United States 
in accordance with section 4003(e) to compel an 
employer making such election to pay the additional 
contributions required under this paragraph. 
‘‘(5) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) ELIGIBLE EMPLOYEE.—The term ‘eligible employee’ 
means an employee who is eligible to participate in an 
employee pension benefit plan (as defined in section 3(2)) 
established and maintained by the employer. 
‘‘(B) FUNDING
TARGET.—The term ‘funding target’ 
means, with respect to any plan year, the funding target 
as determined under section 4006(a)(3)(E)(iii)(I) for pur-
poses of determining the premium paid to the Corporation 
under section 4007 for the plan year. 
‘‘(C) MARKET VALUE.—The market value of the assets 
of a plan shall be determined in the same manner as 
for purposes of section 4006(a)(3)(E). 
‘‘(6) SPECIAL RULES.— 
‘‘(A) CHANGE IN OPERATION OF CERTAIN FACILITIES AND 
PROPERTY.—For purposes of paragraphs (1) and (2), an 
employer shall not be treated as ceasing operations at 
a 
qualified 
lodging 
facility 
(as 
defined 
in 
section 
856(d)(9)(D) of the Internal Revenue Code of 1986) if such 
operations are continued by an eligible independent con-
tractor (as defined in section 856(d)(9)(A) of such Code) 
pursuant to an agreement with the employer. 
‘‘(B) 
AGGREGATION
OF
PRIOR
SEPARATIONS.—The 
workforce reduction under paragraph (2) with respect to 
any cessation of operations shall be determined by taking 
into account any separation from employment of any 
eligible employee at the facility (other than a separation 
which is not taken into account as workforce reduction 
by reason of subparagraph (C) or (D) of paragraph (2)) 
which— 
‘‘(i) is related to the permanent cessation of oper-
ations of the employer at the facility, and 
‘‘(ii) occurs during the 3-year period preceding such 
cessation. 
‘‘(C) NO ADDITION TO PREFUNDING BALANCE.—For pur-
poses of section 303(f)(6)(B) and section 430(f)(6)(B) of the 
Internal Revenue Code of 1986, any additional contribution 
made under paragraph (4) shall be treated in the same 
manner as a contribution an employer is required to make 
in order to avoid a benefit reduction under paragraph (1), 
(2), or (4) of section 206(g) or subsection (b), (c), or (e) 
of section 436 of the Internal Revenue Code of 1986 for 
the plan year.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by this section 
shall apply to a cessation of operations or other event at a
H. R. 83—698 
facility occurring on or after the date of enactment of this 
Act. 
(2) TRANSITION RULE.—An employer that had a cessation 
of operations before the date of enactment of this Act (as 
determined under subsection 4062(e) of the Employee Retire-
ment Income Security Act of 1974 as in effect before the amend-
ment made by this section), but did not enter into an arrange-
ment with the Pension Benefit Guaranty Corporation to satisfy 
the requirements of such subsection (as so in effect) before 
such date of enactment, shall be permitted to make the election 
under section 4062(e)(4) of such Act (as in effect after the 
amendment made by this section) as if such cessation had 
occurred on such date of enactment. Such election shall be 
made not later than 30 days after such Corporation issues, 
on or after such date of the enactment, a final administrative 
determination that a substantial cessation of operations has 
occurred. 
(c) DIRECTION
TO
THE CORPORATION.—The Pension Benefit 
Guaranty Corporation shall not take any enforcement, administra-
tive, or other action pursuant to section 4062(e) of the Employee 
Retirement Income Security Act of 1974, or in connection with 
an agreement settling liability arising under such section, that 
is inconsistent with the amendment made by this section, without 
regard to whether the action relates to a cessation or other event 
that occurs before, on, or after the date of the enactment of this 
Act, unless such action is in connection with a settlement agreement 
that is in place before June 1, 2014. The Pension Benefit Guaranty 
Corporation shall not initiate a new enforcement action with respect 
to section 4062(e) of such Act that is inconsistent with its enforce-
ment policy in effect on June 1, 2014. 
SEC. 2. CLARIFICATION OF THE NORMAL RETIREMENT AGE. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECU-
RITY ACT OF 1974.—Section 204 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1054) is amended by redesignating 
subsection (k) as subsection (l) and by inserting after subsection 
(j) the following new subsection: 
‘‘(k) SPECIAL RULE FOR DETERMINING NORMAL RETIREMENT AGE 
FOR CERTAIN EXISTING DEFINED BENEFIT PLANS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 3(24), an 
applicable plan shall not be treated as failing to meet any 
requirement of this title, or as failing to have a uniform normal 
retirement age for purposes of this title, solely because the 
plan provides for a normal retirement age described in para-
graph (2). 
‘‘(2) APPLICABLE PLAN.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘applicable plan’ means 
a defined benefit plan the terms of which, on or before 
December 8, 2014, provided for a normal retirement age 
which is the earlier of— 
‘‘(i) an age otherwise permitted under section 3(24), 
or 
‘‘(ii) the age at which a participant completes the 
number of years (not less than 30 years) of benefit 
accrual service specified by the plan. 
A plan shall not fail to be treated as an applicable plan 
solely because the normal retirement age described in the
H. R. 83—699 
preceding sentence only applied to certain participants or 
only applied to employees of certain employers in the case 
of a plan maintained by more than 1 employer. 
‘‘(B) EXPANDED APPLICATION.—Subject to subparagraph 
(C), if, after December 8, 2014, an applicable plan is 
amended to expand the application of the normal retire-
ment age described in subparagraph (A) to additional 
participants or to employees of additional employers 
maintaining the plan, such plan shall also be treated as 
an applicable plan with respect to such participants or 
employees. 
‘‘(C) LIMITATION ON EXPANDED APPLICATION.—A defined 
benefit plan shall be an applicable plan only with respect 
to an individual who— 
‘‘(i) is a participant in the plan on or before 
January 1, 2017, or 
‘‘(ii) is an employee at any time on or before 
January 1, 2017, of any employer maintaining the 
plan, and who becomes a participant in such plan 
after such date.’’. 
(b) AMENDMENT TO THE INTERNAL REVENUE CODE OF 1986.— 
Section 411 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new subsection: 
‘‘(f) SPECIAL RULE FOR DETERMINING NORMAL RETIREMENT AGE 
FOR CERTAIN EXISTING DEFINED BENEFIT PLANS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection (a)(8), an 
applicable plan shall not be treated as failing to meet any 
requirement of this subchapter, or as failing to have a uniform 
normal retirement age for purposes of this subchapter, solely 
because the plan provides for a normal retirement age described 
in paragraph (2). 
‘‘(2) APPLICABLE PLAN.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘applicable plan’ means 
a defined benefit plan the terms of which, on or before 
December 8, 2014, provided for a normal retirement age 
which is the earlier of— 
‘‘(i) an age otherwise permitted under subsection 
(a)(8), or 
‘‘(ii) the age at which a participant completes the 
number of years (not less than 30 years) of benefit 
accrual service specified by the plan. 
A plan shall not fail to be treated as an applicable plan 
solely because the normal retirement age described in the 
preceding sentence only applied to certain participants or 
only applied to employees of certain employers in the case 
of a plan maintained by more than 1 employer. 
‘‘(B) EXPANDED APPLICATION.—Subject to subparagraph 
(C), if, after December 8, 2014, an applicable plan is 
amended to expand the application of the normal retire-
ment age described in subparagraph (A) to additional 
participants or to employees of additional employers 
maintaining the plan, such plan shall also be treated as 
an applicable plan with respect to such participants or 
employees. 
‘‘(C) LIMITATION ON EXPANDED APPLICATION.—A defined 
benefit plan shall be an applicable plan only with respect 
to an individual who—
H. R. 83—700 
‘‘(i) is a participant in the plan on or before 
January 1, 2017, or 
‘‘(ii) is an employee at any time on or before 
January 1, 2017, of any employer maintaining the 
plan, and who becomes a participant in such plan 
after such date.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to all periods before, on, and after the date of enactment 
of this Act. 
SEC. 3. APPLICATION OF COOPERATIVE AND SMALL EMPLOYER 
CHARITY PENSION PLAN RULES TO CERTAIN CHARITABLE 
EMPLOYERS WHOSE PRIMARY EXEMPT PURPOSE IS PRO-
VIDING SERVICES WITH RESPECT TO CHILDREN. 
(a) EMPLOYEE RETIREMENT INCOME
AND SECURITY ACT
OF 
1974.— 
(1) IN GENERAL.—Section 210(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1060(f)(1)) is 
amended by striking ‘‘or’’ at the end of subparagraph (A), by 
striking the period at the end of subparagraph (B) and inserting 
‘‘; or’’, and by inserting after subparagraph (B) the following 
new subparagraph: 
‘‘(C) that, as of June 25, 2010, was maintained by 
an employer— 
‘‘(i) described in section 501(c)(3) of such Code, 
‘‘(ii) chartered under part B of subtitle II of title 
36, United States Code, 
‘‘(iii) with employees in at least 40 States, and 
‘‘(iv) whose primary exempt purpose is to provide 
services with respect to children.’’. 
(2) AGGREGATION RULES.—Section 210(f)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1060(f)(2)) 
is amended by striking ‘‘paragraph (1)(B)’’ and inserting 
‘‘subparagraph (B) and (C) of paragraph (1)’’. 
(b) INTERNAL REVENUE CODE OF 1986.— 
(1) IN GENERAL.—Section 414(y)(1) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘or’’ at the end of subpara-
graph (A), by striking the period at the end of subparagraph 
(B) and inserting ‘‘; or’’, and by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) that, as of June 25, 2010, was maintained by 
an employer— 
‘‘(i) described in section 501(c)(3) of such Code, 
‘‘(ii) chartered under part B of subtitle II of title 
36, United States Code, 
‘‘(iii) with employees in at least 40 States, and 
‘‘(iv) whose primary exempt purpose is to provide 
services with respect to children.’’. 
(2) AGGREGATION RULES.—Section 414(y)(2) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘paragraph 
(1)(B)’’ and inserting ‘‘subparagraph (B) and (C) of paragraph 
(1)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the amendments made by the 
Cooperative and Small Employer Charity Pension Flexibility Act 
(29 U.S.C. 401 note).
H. R. 83—701 
DIVISION Q—BUDGETARY EFFECTS 
SEC. 1. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The budgetary 
effects of divisions O and P shall not be entered on either PAYGO 
scorecard maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010. 
(b) SENATE
PAY-AS-YOU-GO
SCORECARDS.—The budgetary 
effects of divisions O and P shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. Con. Res. 
21 (110th Congress). 
(c) CLASSIFICATION OF BUDGETARY EFFECTS.—Notwithstanding 
Rule 3 of the Budget Scorekeeping Guidelines set forth in the 
joint explanatory statement of the committee of conference accom-
panying Conference Report 105-217 and section 250(c)(8) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, the 
budgetary effects of divisions O and P shall not be estimated— 
(1) for purposes of section 251 of the such Act; and 
(2) for purposes of paragraph 4(C) of section 3 of the Statu-
tory Pay-As-You-Go Act of 2010 as being included in an appro-
priation Act. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.