IB 
★
Union Calendar No. 123 
116TH CONGRESS 
1ST SESSION 
H. R. 397 
[Report No. 116–159, Parts I and II] 
To amend the Internal Revenue Code of 1986 to create a Pension Rehabilita-
tion Trust Fund, to establish a Pension Rehabilitation Administration 
within the Department of the Treasury to make loans to multiemployer 
defined benefit plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2019 
Mr. NEAL (for himself, Mr. KING of New York, Mr. SCOTT of Virginia, Mr. 
YOUNG, Mrs. DINGELL, Mr. SMITH of New Jersey, Mr. NORCROSS, Mr. 
KATKO, Ms. KAPTUR, and Mr. FORTENBERRY) introduced the following 
bill; which was referred to the Committee on Education and Labor, and 
in addition to the Committees on Ways and Means, and Appropriations, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
JULY 18, 2019 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 19, 2019 
Reported from the Committee on Education and Labor with an amendment 
[Strike out all after the enacting clause and insert the part printed in boldface roman] 
JULY 19, 2019 
Additional sponsors: Ms. MOORE, Mr. CLEAVER, Mr. LYNCH, Ms. SCHA-
KOWSKY, Mr. HUIZENGA, Mr. RYAN, Mr. SEAN PATRICK MALONEY of 
New York, Mr. FITZPATRICK, Ms. KELLY of Illinois, Ms. MCCOLLUM, 
Ms. BROWNLEY of California, Mr. KHANNA, Ms. WILSON of Florida, Mr. 
HASTINGS, Mr. LOEBSACK, Mrs. BEATTY, Ms. PINGREE, Mr. SIRES, Mr. 
STAUBER, Mr. HIGGINS of New York, Ms. SEWELL of Alabama, Mr. 
LAMB, Ms. VELA´ZQUEZ, Miss RICE of New York, Mrs. BUSTOS, Mr. 
COHEN, Mr. ESPAILLAT, Mr. LIPINSKI, Mr. SABLAN, Mr. KILDEE, Mr. 
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BRINDISI, Ms. TITUS, Ms. CRAIG, Mr. PALLONE, Mr. SCHIFF, Mr. 
SMITH of Washington, Ms. DELAURO, Mr. SERRANO, Ms. NORTON, Mr. 
KRISHNAMOORTHI, Ms. ROYBAL-ALLARD, Mr. GALLEGO, Mrs. NAPOLI-
TANO, Mr. TED LIEU of California, Mr. VISCLOSKY, Mr. MCGOVERN, Mr. 
LEVIN of Michigan, Mr. PRICE of North Carolina, Ms. FUDGE, Ms. 
BONAMICI, Mr. SUOZZI, Ms. HILL of California, Mr. KIND, Mr. POCAN, 
Mr. MORELLE, Ms. OMAR, Mr. FOSTER, Ms. LEE of California, Mr. 
SCHRADER, Mr. GARAMENDI, Ms. WASSERMAN SCHULTZ, Ms. STEVENS, 
Mr. BLUMENAUER, Mr. COURTNEY, Mr. KIM, Mr. GARCI´A of Illinois, Ms. 
WILD, Ms. OCASIO-CORTEZ, Mrs. TRAHAN, Ms. LOFGREN, Mr. ROSE of 
New York, Ms. HAALAND, Mr. GONZALEZ of Texas, Mr. RASKIN, Mr. 
DEFAZIO, Mr. NEGUSE, Mr. DAVID SCOTT of Georgia, Mr. PHILLIPS, 
Ms. JAYAPAL, Ms. DEGETTE, Mr. RUPPERSBERGER, Mr. WELCH, Ms. 
KUSTER of New Hampshire, Mrs. WATSON COLEMAN, Mr. QUIGLEY, Mr. 
TONKO, Mr. DESAULNIER, Mr. SWALWELL of California, Mr. VEASEY, 
Ms. SLOTKIN, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. CONNOLLY, 
Mr. DELGADO, Ms. KENDRA S. HORN of Oklahoma, Ms. CASTOR of Flor-
ida, Mr. CICILLINE, Mr. CARTWRIGHT, Mr. MCEACHIN, Mr. LUJA´N, Mr. 
YARMUTH, Mr. PETERS, Ms. FINKENAUER, Mr. AGUILAR, Mr. GRIJALVA, 
Ms. ESHOO, Mr. CRIST, Mr. DANNY K. DAVIS of Illinois, Mr. CASTRO 
of Texas, Mr. PERLMUTTER, Mr. PASCRELL, Mrs. AXNE, Ms. JACKSON 
LEE, Mr. EVANS, Mrs. DAVIS of California, Ms. ADAMS, Mr. LANGEVIN, 
Mr. LARSON of Connecticut, Ms. SCHRIER, Mr. RUIZ, Mr. GREEN of 
Texas, Mr. MCNERNEY, Mr. KENNEDY, Mrs. LURIA, Ms. MENG, Mr. 
MOULTON, Ms. BLUNT ROCHESTER, Mrs. MCBATH, Mr. JEFFRIES, Mr. 
LOWENTHAL, Mr. BUTTERFIELD, Ms. SPANBERGER, Ms. SPEIER, Mr. 
SCHNEIDER, Mr. THOMPSON of Mississippi, Ms. JOHNSON of Texas, Mr. 
CARBAJAL, Mrs. DEMINGS, Mr. PANETTA, Mr. TAKANO, Ms. DEAN, Ms. 
SCANLON, Mr. STANTON, Mr. GOLDEN, Ms. SA´NCHEZ, Mr. LAWSON of 
Florida, Mr. BISHOP of Georgia, Mr. O’HALLERAN, Mrs. KIRKPATRICK, 
Mr. NADLER, Mr. CA´RDENAS, Mr. VAN DREW, Mr. HIMES, Mr. SHER-
MAN, Mr. HARDER of California, Ms. TLAIB, Mr. ROUDA, Mr. TRONE, 
Ms. SHALALA, Mrs. HAYES, Mr. PAPPAS, Mrs. LEE of Nevada, Ms. 
CLARK of Massachusetts, Mrs. LAWRENCE, Mr. HORSFORD, Mr. PETER-
SON, Ms. JUDY CHU of California, Ms. HOULAHAN, Mr. CLAY, Ms. 
DELBENE, Mr. SOTO, Mr. MALINOWSKI, Ms. BARRAGA´N, Mr. BRENDAN 
F. BOYLE of Pennsylvania, Mr. CROW, Mr. VARGAS, Mr. LARSEN of 
Washington, Mr. DOGGETT, Mr. PAYNE, Mr. COOK, Mr. MEEKS, Mr. 
GOMEZ, Mr. BEYER, Mr. LEWIS, Mr. KEATING, Mr. KILMER, Mr. CAR-
SON of Indiana, Mrs. MURPHY, Mr. THOMPSON of California, Mr. LEVIN 
of California, Mr. BROWN of Maryland, Ms. GARCIA of Texas, Ms. 
SHERRILL, Mr. HUFFMAN, Mrs. TORRES of California, Mr. HOYER, Ms. 
WEXTON, Mr. GOTTHEIMER, Ms. FRANKEL, Mrs. CAROLYN B. MALONEY 
of New York, and Mr. ENGEL 
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JULY 19, 2019 
The Committee on Appropriations discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on January 9, 2019] 
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HR 397 RH1S 
A BILL 
To amend the Internal Revenue Code of 1986 to create 
a Pension Rehabilitation Trust Fund, to establish a Pen-
sion Rehabilitation Administration within the Depart-
ment of the Treasury to make loans to multiemployer 
defined benefit plans, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rehabilitation for Multi-
employer Pensions Act of 2019’’. 
SEC. 2. PENSION REHABILITATION ADMINISTRATION; ES-
TABLISHMENT; POWERS. 
(a) ESTABLISHMENT.—There is established in the De-
partment 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 Adminis-
tration a Director, who shall be appointed by the 
President. 
(2) TERM.— 
(A) IN GENERAL.—The term of office of the 
Director shall be 5 years. 
(B) SERVICE UNTIL APPOINTMENT OF SUC-
CESSOR.—An individual serving as Director at 
the expiration of a term may continue to serve 
until a successor is appointed. 
(3) POWERS.— 
(A) APPOINTMENT OF DEPUTY DIRECTORS, 
OFFICERS, AND EMPLOYEES.—The Director may 
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appoint Deputy Directors, officers, and employ-
ees, including attorneys, in accordance with 
chapter 51 and subchapter III of chapter 53 of 
title 5, United States Code. 
(B) CONTRACTING.— 
(i) IN
GENERAL.—The Director may 
contract for financial and administrative 
services (including those related to budget 
and accounting, financial reporting, per-
sonnel, and procurement) with the General 
Services Administration, or such other Fed-
eral agency as the Director determines ap-
propriate, for which payment shall be made 
in advance, or by reimbursement, from 
funds of the Pension Rehabilitation Admin-
istration in such amounts as may be agreed 
upon by the Director and the head of the 
Federal agency providing the services. 
(ii) SUBJECT
TO
APPROPRIATIONS.— 
Contract authority under clause (i) shall be 
effective for any fiscal year only to the ex-
tent that appropriations are available for 
that purpose. 
(c) TRANSFER OF FUNDS.—The Secretary of the Treas-
ury may transfer for any fiscal year, from unobligated 
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amounts appropriated to the Department of the Treasury, 
to the Pension Rehabilitation Administration such sums as 
may be reasonably necessary for the administrative and op-
erating expenses of the Pension Rehabilitation Administra-
tion. 
SEC. 3. PENSION REHABILITATION TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 9512. PENSION REHABILITATION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is established 
in the Treasury of the United States a trust fund to be 
known as the ‘Pension Rehabilitation Trust Fund’ (here-
after in this section referred to as the ‘Fund’), consisting 
of such amounts as may be appropriated or credited to the 
Fund as provided in this section and section 9602(b). 
‘‘(b) TRANSFERS TO FUND.— 
‘‘(1) AMOUNTS
ATTRIBUTABLE
TO
TREASURY 
BONDS.—There shall be credited to the Fund the 
amounts transferred under section 6 of the Rehabili-
tation for Multiemployer Pensions Act of 2019. 
‘‘(2) LOAN INTEREST AND PRINCIPAL.— 
‘‘(A) IN
GENERAL.—The Director of the 
Pension Rehabilitation Administration estab-
lished under section 2 of the Rehabilitation for 
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Multiemployer Pensions Act of 2019 shall deposit 
in the Fund any amounts received from a plan 
as payment of interest or principal on a loan 
under section 4 of such Act. 
‘‘(B) INTEREST.—For purposes of subpara-
graph (A), the term ‘interest’ includes points and 
other similar amounts. 
‘‘(3) TRANSFERS FROM SECRETARY.—The Direc-
tor of the Pension Rehabilitation Administration 
shall deposit in the Fund any amounts received from 
the Secretary under section 2(c) of such Act. 
‘‘(4) AVAILABILITY OF FUNDS.—Amounts cred-
ited to or deposited in the Fund shall remain avail-
able until expended. 
‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 
Fund are available without further appropriation to the 
Pension Rehabilitation Administration— 
‘‘(1) for the purpose of making the loans de-
scribed in section 4 of the Rehabilitation for Multiem-
ployer Pensions Act of 2019, 
‘‘(2) for the payment of principal and interest 
on obligations issued under section 6 of such Act, and 
‘‘(3) for administrative and operating expenses 
of such Administration.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections for 
subchapter A of chapter 98 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new 
item: 
‘‘Sec. 9512. Pension Rehabilitation Trust Fund.’’. 
SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) LOAN AUTHORITY.— 
(1) IN
GENERAL.—The Pension Rehabilitation 
Administration established under section 2 is author-
ized— 
(A) to make loans to multiemployer plans 
(as defined in section 414(f) of the Internal Rev-
enue Code of 1986) which are defined benefit 
plans (as defined in section 414(j) of such Code) 
and which— 
(i) are in critical and declining status 
(within the meaning of section 432(b)(6) of 
such Code and section 305(b)(6) of the Em-
ployee Retirement and Income Security 
Act) as of the date of the enactment of this 
section, or with respect to which a suspen-
sion of benefits has been approved under 
section 432(e)(9) of such Code and section 
305(e)(9) of such Act as of such date; 
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(ii) as of such date of enactment, are 
in critical status (within the meaning of 
section 432(b)(2) of such Code and section 
305(b)(2) of such Act), have a 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) are insolvent for purposes of sec-
tion 418E of such Code as of such date of 
enactment, if they became insolvent after 
December 16, 2014, and have not been ter-
minated; and 
(B) subject to subsection (b), to establish ap-
propriate 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 li-
abilities (as defined in section 431(c)(6)(D) of such 
Code and section 304(c)(6)(D) of such Act). 
(2) CONSULTATION.—The Director of the Pension 
Rehabilitation Administration shall consult with the 
Secretary of the Treasury, the Secretary of Labor, 
and the Director of the Pension Benefit Guaranty 
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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 September 30, 2019, 
with guidance regarding such program to be pro-
mulgated by the Director of the Pension Reha-
bilitation Administration, in consultation with 
the Director of the Pension Benefit Guaranty 
Corporation, the Secretary of the Treasury, and 
the Secretary of Labor, not later than December 
31, 2019. 
(B) LOANS AUTHORIZED BEFORE PROGRAM 
DATE.—Without regard to whether the program 
under subparagraph (A) has been established, a 
plan may apply for a loan under this section be-
fore either date described in such subparagraph, 
and the Pension Rehabilitation Administration 
shall approve the application and make the loan 
before establishment of the program if necessary 
to avoid any suspension of the accrued benefits 
of participants. 
(b) LOAN TERMS.— 
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(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 provides 
for reduced contribution rates, during the 
30-year period described in subparagraphs 
(A) and (B); 
(ii) in the case of a plan with respect 
to which a suspension of benefits has been 
approved under section 432(e)(9) of the In-
ternal Revenue Code of 1986 and section 
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305(e)(9) of the Employee Retirement In-
come Security Act of 1974, or under section 
418E of such Code, before the loan, the plan 
will reinstate the suspended benefits (or will 
not carry out any suspension which has 
been approved but not yet implemented); 
(iii) the plan sponsor will comply with 
the requirements of section 6059A of the In-
ternal 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 Di-
rector of the Pension Rehabilitation Admin-
istration provides in the loan terms. 
The terms of the loan shall not make reference to 
whether the plan is receiving financial assistance 
under section 4261(d) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1431(d)) or to any adjustment of the loan 
amount under subsection (d)(2)(A)(ii). 
(2) INTEREST RATE.—Except as provided in the 
second sentence of this paragraph and subsection 
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(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 Adminis-
tration and shall— 
(A) not be lower than the rate of interest on 
30-year Treasury securities on the first day of 
the calendar year in which the loan is issued, 
and 
(B) not exceed the greater of— 
(i) a rate .2 percent higher than such 
rate of interest on such date, or 
(ii) the rate necessary to collect 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— 
(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 pe-
riod described in subparagraphs (A) and 
(B) of subsection (b)(1) or, in the case of a 
plan which is already insolvent, to emerge 
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from insolvency within and avoid insol-
vency for the remainder of such period; and 
(ii) the plan is reasonably expected to 
be able to pay benefits and the interest on 
the loan during such period and to accumu-
late sufficient funds to repay the principal 
when due; 
(B) provide the plan’s most recently filed 
Form 5500 as of the date of application and any 
other information necessary to determine the 
loan amount under subsection (d); 
(C) stipulate whether the plan is also ap-
plying for financial assistance under section 
4261(d) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1431(d)) in com-
bination with the loan to enable the plan to 
avoid insolvency and to pay benefits, or is al-
ready receiving such financial assistance as a re-
sult of a previous application; 
(D) state in what manner the loan proceeds 
will be invested pursuant to subsection (d), the 
person from whom any annuity contracts under 
such subsection will be purchased, and the person 
who will be the investment manager for any 
portfolio implemented under such subsection; and 
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(E) include such other information and cer-
tifications as the Director of the Pension Reha-
bilitation 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 Re-
habilitation 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 Sec-
retary of the Treasury, and the Secretary of Labor, 
concludes that any such determinations or demonstra-
tions in the application (or any underlying assump-
tions) are unreasonable or are inconsistent with any 
rules issued by the Director pursuant to subsection 
(g). 
(3) REQUIRED ACTIONS; DEEMED APPROVAL.— 
The Director of the Pension Rehabilitation Adminis-
tration shall approve or deny any application under 
this subsection within 90 days after the submission of 
such application. An application shall be deemed ap-
proved unless, within such 90 days, the Director noti-
fies the plan sponsor of the denial of such application 
and the reasons for such denial. Any approval or de-
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nial of an application by the Director of the Pension 
Rehabilitation Administration shall be treated as a 
final agency action for purposes of section 704 of title 
5, United States Code. The Pension Rehabilitation 
Administration shall make the loan pursuant to any 
application promptly after the approval of such ap-
plication. 
(4) CERTAIN PLANS REQUIRED TO APPLY.—The 
plan sponsor of any plan with respect to which a sus-
pension of benefits has been approved under section 
432(e)(9) of the Internal Revenue Code of 1986 and 
section 305(e)(9) of the Employee Retirement Income 
Security Act of 1974 or under section 418E of such 
Code, before the date of the enactment of this Act shall 
apply for a loan under this section. The Director of 
the Pension Rehabilitation Administration shall pro-
vide for such plan sponsors to use the simplified ap-
plication 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 making this 
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election, the interest on the loan shall be reduced by 
0.5 percent. 
(d) LOAN AMOUNT AND USE.— 
(1) AMOUNT OF LOAN.— 
(A) IN GENERAL.—Except as provided in 
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 beneficiaries 
of the plan in pay status, and terminated vested 
benefits, at the time the loan is made. 
(B) PLANS WITH SUSPENDED BENEFITS.— 
In the case of a plan with respect to which a sus-
pension of benefits has been approved under sec-
tion 432(e)(9) of the Internal Revenue Code of 
1986 and section 305(e)(9) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1085(e)(9)) or under section 418E of such 
Code— 
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(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 par-
ticipants and beneficiaries of the plan in 
pay status and terminated vested benefits at 
the time the loan is made, determined with-
out regard to the suspension, including ret-
roactive payment of benefits which would 
otherwise have been payable during the pe-
riod of the suspension. 
(2) COORDINATION
WITH
PBGC
FINANCIAL
AS-
SISTANCE.— 
(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 eli-
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gibility 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-
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 Pen-
sion Benefit Guaranty Corporation at the time 
of the application for the loan under this section. 
(3) USE OF LOAN FUNDS.— 
(A) IN GENERAL.—Notwithstanding section 
432(f)(2)(A)(ii) of the Internal Revenue Code of 
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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 im-
plement a portfolio described in subparagraph 
(C) (or a combination of the two) to provide the 
benefits described in paragraph (1). 
(B) ANNUITY CONTRACT REQUIREMENTS.— 
The annuity contracts purchased under subpara-
graph (A) shall be issued by an insurance com-
pany which is licensed to do business under the 
laws of any State and which is rated A or better 
by a nationally recognized statistical rating or-
ganization, and the purchase of such contracts 
shall meet all applicable fiduciary standards 
under the Employee Retirement Income Security 
Act of 1974. 
(C) PORTFOLIO.— 
(i) IN GENERAL.—A portfolio described 
in this subparagraph is— 
(I) a cash matching portfolio or 
duration matching portfolio consisting 
of investment grade (as rated by a na-
tionally recognized statistical rating 
organization) 
fixed 
income 
invest-
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ments, including United States dollar- 
denominated public or private debt ob-
ligations issued or guaranteed by the 
United States or a foreign issuer, 
which are tradeable in United States 
currency and are issued at fixed or 
zero coupon rates; or 
(II) any other portfolio prescribed 
by the Secretary of the Treasury in 
regulations which has a similar risk 
profile to the portfolios described in 
subclause (I) and is equally protective 
of the interests of participants and 
beneficiaries. 
Once implemented, such a portfolio shall be 
maintained until all liabilities to 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 sub-
paragraph shall acknowledge in writing 
that such person is a fiduciary under the 
Employee Retirement Income Security Act 
of 1974 with respect to the plan. 
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(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 to 
provide the benefits described in paragraph 
(1) until all such benefits have been paid 
and shall be accounted for separately from 
the other assets of the plan. 
(ii) OVERSIGHT OF NON-ANNUITY IN-
VESTMENTS.— 
(I) IN
GENERAL.—Any portfolio 
implemented under this paragraph 
shall be subject to oversight by the Pen-
sion Rehabilitation Administration, 
including a mandatory triennial re-
view of the adequacy of the portfolio to 
provide the benefits described in para-
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graph (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 sponsor 
shall take remedial action to ensure 
that the inadequacy will be cured with-
in 2 years of such determination. 
(E) OMBUDSPERSON.—The Participant and 
Plan Sponsor Advocate established under section 
4004 of the Employee Retirement Income Secu-
rity Act of 1974 shall act as ombudsperson for 
participants and beneficiaries on behalf of whom 
annuity contracts are purchased or who are cov-
ered by a portfolio under this paragraph. 
(e) COLLECTION OF REPAYMENT.—Except as provided 
in subsection (f), the Pension Rehabilitation Administra-
tion shall make every effort to collect repayment of loans 
under this section in accordance with section 3711 of title 
31, United States Code. 
(f) LOAN DEFAULT.—If a plan is unable to make any 
payment on a loan under this section when due, the Pension 
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Rehabilitation Administration shall negotiate with the plan 
sponsor revised terms for repayment (including installment 
payments over a reasonable period or forgiveness of a por-
tion of the loan principal), but only to the extent necessary 
to avoid insolvency in the subsequent 18 months. 
(g) AUTHORITY TO ISSUE RULES, ETC.—The Director 
of the Pension Rehabilitation Administration, in consulta-
tion with the Director of the Pension Benefit Guaranty Cor-
poration, the Secretary of the Treasury, and the 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 purposes of such ap-
plications, and assumptions regarding interest rates, mor-
tality, and distributions with respect to a portfolio de-
scribed in subsection (d)(3)(C). 
(h) COORDINATION WITH TAXATION OF UNRELATED 
BUSINESS
INCOME.—Subparagraph 
(A) 
of 
section 
514(c)(6) of the Internal Revenue Code of 1986 is 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: 
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‘‘(iii) indebtedness with respect to a 
multiemployer plan under a loan made by 
the Pension Rehabilitation Administration 
pursuant to section 4 of the Rehabilitation 
for Multiemployer Pensions Act of 2019.’’. 
SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND 
FUNDING RULES. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 432 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PENSION 
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 4(a) of the Rehabilitation 
for Multiemployer Pensions Act of 2019 with-
draws from the plan before the end of the 30-year 
period beginning on the date of the loan, the 
withdrawal liability of such employer shall be 
determined under the Employee Retirement In-
come Security Act of 1974— 
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‘‘(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 section 4281 of the 
Employee Retirement Income Security Act 
of 1974 in the case of such a mass with-
drawal. 
‘‘(B) ANNUITY CONTRACTS AND INVESTMENT 
PORTFOLIOS PURCHASED WITH LOAN FUNDS.— 
Annuity contracts purchased and portfolios im-
plemented under section 4(d)(3) of the Rehabili-
tation for Multiemployer Pensions Act of 2019 
shall not be taken into account as plan assets in 
determining the withdrawal liability of any em-
ployer under subparagraph (A), but the amount 
equal to the greater of— 
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‘‘(i) the benefits provided under such 
contracts or portfolios to participants and 
beneficiaries, or 
‘‘(ii) the remaining payments due on 
the loan under section 4(a) of such Act, 
shall be 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 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019— 
‘‘(A) annuity contracts purchased and port-
folios implemented under section 4(d)(3) of such 
Act, and the benefits provided to participants 
and beneficiaries under such contracts or port-
folios, shall not be taken into account in deter-
mining 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 liabil-
ities for purposes of such section, and 
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‘‘(C) if such a portfolio is projected due to 
unfavorable investment or actuarial experience 
to be unable to fully satisfy the liabilities which 
it covers, the amount of the liabilities projected 
to be unsatisfied shall be taken into account as 
liabilities for purposes of such section.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Section 305 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1085) is 
amended by adding at the end the following new subsection: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PENSION 
REHABILITATION LOANS.— 
‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL-
ITY.— 
‘‘(A) IN GENERAL.—If any employer par-
ticipating in a plan at the time the plan receives 
a loan under section 4(a) of the Rehabilitation 
for Multiemployer Pensions Act withdraws from 
the plan before the end of the 30-year period be-
ginning 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 with-
drawal of every employer from the plan, 
and 
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‘‘(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 regula-
tions under section 4281 in the case of such 
a mass withdrawal. 
‘‘(B) ANNUITY CONTRACTS AND INVESTMENT 
PORTFOLIOS PURCHASED WITH LOAN FUNDS.— 
Annuity contracts purchased and portfolios im-
plemented under section 4(d)(3) of the Rehabili-
tation for Multiemployer Pensions Act shall not 
be taken into account 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 4(a) of such Act, 
shall be so taken into account. 
‘‘(2) COORDINATION
WITH
FUNDING
REQUIRE-
MENTS.—In the case of a plan which receives a loan 
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under section 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act— 
‘‘(A) annuity contracts purchased and port-
folios implemented under section 4(d)(3) of such 
Act, and the benefits provided to participants 
and beneficiaries under such contracts or port-
folios, shall not be taken into account in deter-
mining minimum required contributions under 
section 302, 
‘‘(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 liabil-
ities for purposes of such section, and 
‘‘(C) if such a portfolio is projected due to 
unfavorable investment or actuarial experience 
to be unable to fully satisfy the liabilities which 
it covers, the amount of the liabilities projected 
to be unsatisfied shall be taken into account as 
liabilities for purposes of such section.’’. 
SEC. 6. ISSUANCE OF TREASURY BONDS. 
The Secretary of the Treasury 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 
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as are necessary to fund the loan program under section 
4 of this Act, including from proceeds from the Secretary’s 
issuance of obligations under chapter 31 of title 31, United 
States Code. 
SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHABILI-
TATION LOANS. 
(a) IN GENERAL.—Subpart E of part III of subchapter 
A of chapter 61 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section: 
‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE-
HABILITATION LOANS. 
‘‘(a) IN GENERAL.—In the case of a plan receiving a 
loan under section 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019, with respect to the first plan 
year beginning after the date of the loan and each of the 
29 succeeding plan years, not later than the 90th day of 
each such plan year the plan sponsor shall file with the 
Secretary a report (including appropriate documentation 
and actuarial certifications from the plan actuary, as re-
quired by the Secretary) that contains— 
‘‘(1) the funded percentage (as defined in section 
432(j)(2)) as of the first day of such plan year, and 
the underlying actuarial value of assets (determined 
with regard, and without regard, to annuity contracts 
purchased and portfolios implemented with proceeds 
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of such loan) and liabilities (including any amounts 
due with respect to such loan) taken into account in 
determining such percentage, 
‘‘(2) the market value of the assets of the plan 
(determined as provided in paragraph (1)) as of the 
last day of the plan year preceding such plan year, 
‘‘(3) the total value of all contributions made by 
employers and employees during the plan year 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 assumptions 
used in making such projections, 
‘‘(6) funding standard account projections for 
such plan year and the 9 succeeding plan years, and 
the assumptions relied upon in making such 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, 
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‘‘(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 assess-
ment of the withdrawal liability paid, the annual 
payment amount, and the number of years remaining 
in the payment schedule with respect to such with-
drawal 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 Retirement 
Income Security Act of 1974 to pay benefits during 
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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, 
‘‘(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 actuarial 
valuation report as of the plan year, copies of collec-
tive bargaining agreements, and financial reports, 
and such other information as the Secretary, in con-
sultation with the Director of the Pension Rehabilita-
tion Administration, may require. 
‘‘(b) ELECTRONIC SUBMISSION.—The report required 
under subsection (a) shall be submitted electronically. 
‘‘(c) INFORMATION SHARING.—The Secretary shall 
share the information in the report under subsection (a) 
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with the Secretary of Labor and the Director of the Pension 
Benefit Guaranty Corporation. 
‘‘(d) REPORT TO PARTICIPANTS, BENEFICIARIES, AND 
EMPLOYERS.—Each plan sponsor required to file a report 
under subsection (a) shall, before the expiration of the time 
prescribed for the filing of such report, also provide a sum-
mary (written in a manner so as to be understood by the 
average plan participant) of the information in such report 
to participants and beneficiaries in the plan and to each 
employer with an obligation to contribute to the plan.’’. 
(b) PENALTY.—Subsection (e) of section 6652 of the 
Internal Revenue Code of 1986 is amended— 
(1) by inserting ‘‘, 6059A (relating to reports of 
plans receiving pension rehabilitation loans)’’ after 
‘‘deferred compensation)’’; 
(2) by inserting ‘‘($100 in the case of failures 
under section 6059A)’’ after ‘‘$25’’; and 
(3) by adding at the end the following: ‘‘In the 
case of a failure with respect to section 6059A, the 
amount imposed under this subsection shall not be 
paid from the assets of the plan.’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart E of part III of subchapter A of chapter 61 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new item: 
‘‘Sec. 6059A. Reports of plans receiving pension rehabilitation loans.’’. 
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SEC. 8. 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 subsection: 
‘‘(d)(1) The plan sponsor of a multiemployer plan— 
‘‘(A) which is in critical and declining status 
(within the meaning of section 305(b)(6)), or 
‘‘(B) which is insolvent but has not been termi-
nated and is receiving assistance from the corporation 
(other than assistance under this subsection), 
and which is applying for a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pensions Act may also 
apply to the corporation for financial assistance under this 
subsection, by jointly submitting such applications in ac-
cordance with section 4(d)(2) of such Act. The application 
for financial assistance under this subsection shall dem-
onstrate, based on projections by the plan actuary, that 
after the receipt of the anticipated loan amount under sec-
tion 4(a) of such Act, the plan will still become (or remain) 
insolvent within the 30-year period beginning on the date 
of the loan. 
‘‘(2) In the case of a plan described in paragraph 
(1)(A), the financial assistance provided pursuant to such 
application under this subsection shall be the amount (de-
termined by the plan actuary and submitted on the applica-
tion) equal to the sum of— 
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‘‘(A) the percentage of benefits of participants 
and beneficiaries of the plan in pay status at the time 
of the application, and 
‘‘(B) the percentage of future benefits to which 
participants who have separated from service but are 
not yet in pay status are entitled, 
which, if such percentage were paid by the corporation in 
combination with the loan, would allow the plan to avoid 
the projected insolvency and be projected to have increasing 
assets over any 5-year period following the repayment of 
the loan. Such amount shall not exceed the maximum guar-
anteed benefit with respect to all participants and bene-
ficiaries of the plan under sections 4022A and 4022B. For 
this purpose, the maximum guaranteed benefit amount 
shall be determined by disregarding any loan available 
from the Pension Rehabilitation Administration and shall 
be determined as if the plan were insolvent on the date of 
the application. Further, the present value of the maximum 
guaranteed benefit amount with respect to such partici-
pants and beneficiaries may be calculated in the aggregate, 
rather than by reference to the benefit of each such partici-
pant or beneficiary. 
‘‘(3) In the case of a plan described in paragraph 
(1)(B), the financial assistance provided pursuant to such 
application under this subsection shall be the amount (de-
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termined by the plan actuary and submitted on the applica-
tion) which, if such amount were paid by the corporation 
in combination with the loan and any other assistance 
being provided to the plan by the corporation at the time 
of the application, would enable the plan to emerge from 
insolvency. 
‘‘(4) Subsections (b) and (c) shall apply to financial 
assistance under this subsection as if it were provided under 
subsection (a), except that the terms for repayment under 
subsection (b)(2) shall not require the financial assistance 
to be repaid before the date on which the loan under section 
4(a) of the Rehabilitation for Multiemployer Pensions Act 
is repaid in full. 
‘‘(5) 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.’’. 
(b) APPROPRIATIONS.—There is appropriated to the 
Director of the Pension Benefit Guaranty Corporation such 
sums as may be necessary for each fiscal year to provide 
the financial assistance described in section 4261(d) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1431(d)) (as added by this section) (including nec-
essary administrative and operating expenses relating to 
such assistance). 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rehabilita-
tion for Multiemployer Pensions Act of 2019’’. 
SEC. 2. 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.— 
(A) IN GENERAL.—The term of of-
fice 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 suc-
cessor is appointed. 
(3) POWERS.— 
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(A) APPOINTMENT OF DEPUTY DIREC-
TORS, OFFICERS, AND EMPLOYEES.—The 
Director may appoint Deputy Direc-
tors, officers, and employees, includ-
ing attorneys, in accordance with 
chapter 51 and subchapter III of 
chapter 53 of title 5, United States 
Code. 
(B) CONTRACTING.— 
(i) IN GENERAL.—The Director 
may contract for financial and ad-
ministrative services (including 
those related to budget and ac-
counting, financial reporting, per-
sonnel, and procurement) with 
the General Services Administra-
tion, or such other Federal agen-
cy as the Director determines ap-
propriate, 
for 
which 
payment 
shall be made in advance, or by 
reimbursement, from funds of the 
Pension Rehabilitation Adminis-
tration in such amounts as may 
be agreed upon by the Director 
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and the head of the Federal agen-
cy providing the services. 
(ii) 
SUBJECT
TO
APPROPRIA-
TIONS.—Contract authority under 
clause (i) shall be effective for 
any fiscal year only to the extent 
that appropriations are available 
for that purpose. 
(c) TRANSFER OF FUNDS.—The Secretary of 
the Treasury may transfer for any fiscal year, 
from unobligated amounts appropriated to 
the Department of the Treasury, to the Pen-
sion Rehabilitation Administration such sums 
as may be reasonably necessary for the ad-
ministrative and operating expenses of the 
Pension Rehabilitation Administration. 
SEC. 3. PENSION REHABILITATION TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 
98 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new section: 
‘‘SEC. 9512. PENSION REHABILITATION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is 
established in the Treasury of the United 
States a trust fund to be known as the ‘Pen-
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sion Rehabilitation Trust Fund’ (hereafter in 
this section referred to as the ‘Fund’), con-
sisting of such amounts as may be appro-
priated or credited to the Fund as provided 
in this section and section 9602(b). 
‘‘(b) TRANSFERS TO FUND.— 
‘‘(1) AMOUNTS ATTRIBUTABLE TO TREAS-
URY
BONDS.—There shall be credited to 
the Fund the amounts transferred under 
section 6 of the Rehabilitation for Multi-
employer Pensions Act of 2019. 
‘‘(2) LOAN INTEREST AND PRINCIPAL.— 
‘‘(A) IN GENERAL.—The Director of 
the Pension Rehabilitation Adminis-
tration established under section 2 of 
the Rehabilitation for Multiemployer 
Pensions Act of 2019 shall deposit in 
the Fund any amounts received from 
a plan as payment of interest or prin-
cipal on a loan under section 4 of 
such Act. 
‘‘(B) INTEREST.—For purposes of 
subparagraph (A), the term ‘interest’ 
includes points and other similar 
amounts. 
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‘‘(3) TRANSFERS FROM SECRETARY.—The 
Director of the Pension Rehabilitation 
Administration shall deposit in the Fund 
any amounts received from the Secretary 
under section 2(c) of such Act. 
‘‘(4) AVAILABILITY OF FUNDS.—Amounts 
credited to or deposited in the Fund shall 
remain available until expended. 
‘‘(c) EXPENDITURES FROM FUND.—Amounts 
in the Fund are available without further ap-
propriation to the Pension Rehabilitation Ad-
ministration— 
‘‘(1) for the purpose of making the 
loans described in section 4 of the Reha-
bilitation for Multiemployer Pensions Act 
of 2019, 
‘‘(2) for the payment of principal and 
interest on obligations issued under sec-
tion 6 of such Act, and 
‘‘(3) for administrative and operating 
expenses of such Administration.’’. 
(b) CLERICAL AMENDMENT.—The table of 
sections for subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘Sec. 9512. Pension Rehabilitation Trust Fund.’’. 
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SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) LOAN AUTHORITY.— 
(1) IN
GENERAL.—The Pension Reha-
bilitation 
Administration 
established 
under section 2 is authorized— 
(A) to make loans to multiem-
ployer plans (as defined in section 
414(f) of the Internal Revenue Code of 
1986) which are defined benefit plans 
(as defined in section 414(j) of such 
Code) and which— 
(i) are in critical and declin-
ing status (within the meaning of 
section 432(b)(6) of such Code and 
section 305(b)(6) of such Act) as of 
the date of the enactment of this 
Act, or with respect to which a 
suspension of benefits has been 
approved under section 432(e)(9) 
of such Code and section 305(e)(9) 
of such Act as of such date; 
(ii) as of such date of enact-
ment, are in critical status (with-
in 
the 
meaning 
of 
section 
432(b)(2) of such Code and section 
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305(b)(2) of such Act), have a 
funded percentage of less than 40 
percent (as determined for pur-
poses of section 432 of such Code 
and section 305 of such Act), and 
have a ratio of active to inactive 
participants which is less than 2 
to 3; or 
(iii) are insolvent for purposes 
of section 418E of such Code as of 
such date of enactment, if they 
became insolvent after December 
16, 2014, and have not been termi-
nated; and 
(B) subject to subsection (b), to 
establish appropriate terms for such 
loans. 
(2) CONSULTATION.—The Director of 
the Pension Rehabilitation Administra-
tion shall consult with the Secretary of 
the Treasury, the Secretary of Labor, and 
the Director of the Pension Benefit Guar-
anty Corporation before making any loan 
under paragraph (1), and shall share with 
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such persons the application and plan in-
formation with respect to each such loan. 
(3) 
ESTABLISHMENT
OF
LOAN
PRO-
GRAM.— 
(A) IN
GENERAL.—A program to 
make the loans authorized under this 
section shall be established not later 
than September 30, 2019, with guid-
ance regarding such program to be 
promulgated by the Director of the 
Pension Rehabilitation Administra-
tion, in consultation with the Pension 
Benefit Guaranty Corporation and 
the Department of Labor, not later 
than December 31, 2019. 
(B) 
LOANS
AUTHORIZED
BEFORE 
PROGRAM
DATE.—Without regard to 
whether the program under subpara-
graph (A) has been established, a plan 
may apply for a loan under this sec-
tion before either date described in 
such subparagraph, and the Pension 
Rehabilitation Administration shall 
approve the application and make the 
loan before establishment of the pro-
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gram if necessary to avoid any sus-
pension of the accrued benefits of 
participants. 
(b) LOAN TERMS.— 
(1) IN
GENERAL.—The terms of any 
loan made under subsection (a) shall 
state that— 
(A) the plan shall make payments 
of interest on the loan for a period of 
29 years beginning on the date of the 
loan (or 19 years in the case of a plan 
making the election under subsection 
(c)(5)); 
(B) final payment of interest and 
principal shall be due in the 30th 
year after the date of the loan (except 
as provided in an election under sub-
section (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 in-
crease benefits, allow any em-
ployer participating in the plan to 
reduce its contributions, or ac-
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cept any collective bargaining 
agreement which provides for re-
duced contribution rates, during 
the 30-year period described in 
subparagraphs (A) and (B); 
(ii) in the case of a plan with 
respect to which a suspension of 
benefits has been approved under 
section 432(e)(9) of the Internal 
Revenue Code of 1986 and section 
305(e)(9) of the Employee Retire-
ment Income Security Act of 1974, 
or under section 418E of such 
Code, before the loan, the plan 
will reinstate the suspended bene-
fits (or will not carry out any sus-
pension which has been approved 
but not yet implemented); 
(iii) the plan sponsor will 
comply with the requirements of 
section 6059A of the Internal Rev-
enue Code of 1986; 
(iv) the plan will continue to 
pay all premiums due under sec-
tion 4007 of the Employee Retire-
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ment Income Security Act of 1974; 
and 
(v) the plan and plan adminis-
trator will meet such other re-
quirements as the Director of the 
Pension Rehabilitation Adminis-
tration 
provides 
in 
the 
loan 
terms. 
The terms of the loan shall not make 
reference to whether the plan is re-
ceiving financial assistance under 
section 4261(d) of the Employee Re-
tirement Income Security Act of 1974 
(29 U.S.C. 1431(d)) or to any adjust-
ment of the loan amount under sub-
section (d)(2)(A)(ii). 
(2) INTEREST
RATE.—Except as pro-
vided in the second sentence of this para-
graph and subsection (c)(5), loans made 
under subsection (a) shall have as low an 
interest rate as is feasible. Such rate 
shall be determined by the Pension Reha-
bilitation Administration and shall— 
(A) not be lower than the rate of 
interest on 30-year Treasury securi-
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ties on the first day of the calendar 
year in which the loan is issued, and 
(B) not exceed the greater of— 
(i) a rate .2 percent higher 
than such rate of interest on such 
date, or 
(ii) the rate necessary to col-
lect revenues sufficient to admin-
ister the program under this sec-
tion. 
(c) LOAN APPLICATION.— 
(1) IN
GENERAL.—In applying for a 
loan under subsection (a), the plan spon-
sor shall— 
(A) demonstrate that, except as 
provided in subparagraph (C)— 
(i) the loan will enable the 
plan to avoid insolvency for at 
least the 30-year period described 
in subparagraphs (A) and (B) of 
subsection (b)(1) or, in the case of 
a plan which is already insolvent, 
to emerge from insolvency within 
and avoid insolvency for the re-
mainder of such period; and 
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(ii) the plan is reasonably ex-
pected to be able to pay benefits 
and the interest on the loan dur-
ing such period and to accumu-
late sufficient funds to repay the 
principal when due; 
(B) provide the plan’s most re-
cently filed Form 5500 as of the date 
of application and any other informa-
tion necessary to determine the loan 
amount under subsection (d); 
(C) stipulate whether the plan is 
also applying for financial assistance 
under section 4261(d) of the Em-
ployee Retirement Income Security 
Act of 1974 (29 U.S.C. 1431(d)) in com-
bination with the loan to enable the 
plan to avoid insolvency and to pay 
benefits, or is already receiving such 
financial assistance as a result of a 
previous application; 
(D) state in what manner the loan 
proceeds will be invested pursuant to 
subsection (d), the person from whom 
any annuity contracts under such 
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subsection will be purchased, and the 
person who will be the investment 
manager for any portfolio imple-
mented under such subsection; and 
(E) include such other informa-
tion and certifications as the Director 
of the Pension Rehabilitation Admin-
istration shall require. 
(2) STANDARD
FOR
ACCEPTING
ACTU-
ARIAL AND PLAN SPONSOR DETERMINATIONS 
AND
DEMONSTRATIONS
IN
THE
APPLICA-
TION.—In evaluating the plan sponsor’s 
application, the Director of the Pension 
Rehabilitation Administration shall ac-
cept the determinations and demonstra-
tions in the application unless the Direc-
tor, in consultation with the Director of 
the Pension Benefit Guaranty Corpora-
tion and the Secretary of Labor, con-
cludes that the determinations and dem-
onstrations in the application are unrea-
sonable or are inconsistent with any 
rules issued by the Director pursuant to 
subsection (g). 
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(3) REQUIRED
ACTIONS; 
DEEMED
AP-
PROVAL.—The Director of the Pension Re-
habilitation Administration shall approve 
or deny any application under this sub-
section within 90 days after the submis-
sion of such application. An application 
shall be deemed approved unless, within 
such 90 days, the Director notifies the 
plan sponsor of the denial of such appli-
cation and the reasons for such denial. 
Any approval or denial of an application 
by the Director of the Pension Rehabilita-
tion Administration shall be treated as a 
final agency action for purposes of sec-
tion 704 of title 5, United States Code. 
The Pension Rehabilitation Administra-
tion 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 Em-
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ployee Retirement Income Security Act of 
1974 or under section 418E of such Code, 
before the date of the enactment of this 
Act shall apply for a loan under this sec-
tion. The Director of the Pension Reha-
bilitation Administration shall provide 
for such plan sponsors to use the sim-
plified 
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 prin-
cipal, along with the remaining interest, 
over the 10-year period beginning with 
the 21st year after the date of the loan. In 
the case of a plan making this election, 
the interest on the loan shall be reduced 
by 0.5 percent. 
(d) LOAN AMOUNT AND USE.— 
(1) AMOUNT OF LOAN.— 
(A) IN
GENERAL.—Except as pro-
vided in subparagraphs (B) and (C) 
and paragraph (2), the amount of any 
loan under subsection (a) shall be, as 
demonstrated by the plan sponsor on 
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the application under subsection (c), 
the amount needed to purchase annu-
ity contracts or to implement a port-
folio described in paragraph (3)(C) 
(or a combination of the two) suffi-
cient to provide benefits of partici-
pants and beneficiaries of the plan in 
pay status, and terminated vested 
benefits, at the time the loan is made. 
(B) LIMITATION
BASED
ON
ABILITY 
TO REPAY.—If at the time of the appli-
cation under subsection (c) the plan 
sponsor determines that, based on a 
repayment schedule that would pro-
vide for repayment of the full amount 
determined under subparagraph (A) 
or (C)(ii) within the 30 year period 
described in subsection (b)(1), making 
payments would cause the plan to be 
within 18 months of becoming insol-
vent at any point during such period, 
the loan amount shall be such lesser 
amount as the plan sponsor deter-
mines the plan will be able to repay 
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without becoming within 18 months 
of insolvency. 
(C) PLANS WITH SUSPENDED BENE-
FITS.—In the case of a plan with re-
spect to which a suspended benefits 
has been approved under section 
432(e)(9) of the Internal Revenue 
Code of 1986 and section 305(e)(9) of 
the Employee Retirement Income Se-
curity 
Act 
of 
1974 
(29 
U.S.C. 
1085(e)(9)) or under section 418E of 
such Code— 
(i) the suspension of benefits 
shall not be taken into account in 
applying subparagraph (A); and 
(ii) except as provided in sub-
paragraph (B), the loan amount 
shall be the amount sufficient to 
provide benefits of participants 
and beneficiaries of the plan in 
pay status and terminated vested 
benefits at the time the loan is 
made, determined without regard 
to the suspension, including ret-
roactive 
payment 
of 
benefits 
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which would otherwise have been 
payable during the period of the 
suspension. 
(2) COORDINATION WITH PBGC FINANCIAL 
ASSISTANCE.— 
(A) IN GENERAL.—In the case of a 
plan which is also applying for finan-
cial assistance under section 4261(d) 
of the Employee Retirement Income 
Security 
Act 
of 
1974 
(29 
U.S.C. 
1431(d))— 
(i) the plan sponsor shall sub-
mit the loan application and the 
application for financial assist-
ance jointly to the Pension Reha-
bilitation Administration and the 
Pension Benefit Guaranty Cor-
poration with the information 
necessary to determine the eligi-
bility for and amount of the loan 
under this section and the finan-
cial 
assistance 
under 
section 
4261(d) of such Act; and 
(ii) if such financial assistance 
is granted, the amount of the loan 
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under subsection (a) shall not ex-
ceed an amount equal to the ex-
cess of— 
(I) the amount determined 
under 
paragraph 
(1)(A) 
or 
(1)(C)(ii) (whichever is appli-
cable), 
without 
regard 
to 
paragraph (1)(B); over 
(II) the amount of such fi-
nancial assistance. 
(B) PLANS ALREADY RECEIVING PBGC 
ASSISTANCE.—The Director of the Pen-
sion 
Rehabilitation 
Administration 
shall provide for a simplified applica-
tion for the loan under this section 
which may be used by an insolvent 
plan which has not been terminated 
and which is already receiving finan-
cial assistance (other than under sec-
tion 4261(d) of such Act) from the 
Pension Benefit Guaranty Corpora-
tion at the time of the application for 
the loan under this section. 
(3) USE OF LOAN FUNDS.— 
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(A) IN
GENERAL.—The loan re-
ceived under subsection (a) shall be 
used to purchase annuity contracts 
which meet the requirements of sub-
paragraph (B) or to implement a port-
folio described in subparagraph (C) 
(or a combination of the two) to pro-
vide the benefits described in para-
graph (1). 
(B) ANNUITY
CONTRACT
REQUIRE-
MENTS.—The annuity contracts pur-
chased under subparagraph (A) shall 
be issued by an insurance company 
which is licensed to do business 
under the laws of any State and 
which is rated A or better by a na-
tionally recognized statistical rating 
organization, and the purchase of 
such contracts shall meet all applica-
ble fiduciary standards under the 
Employee Retirement Income Secu-
rity Act of 1974. 
(C) PORTFOLIO.— 
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(i) IN
GENERAL.—A portfolio 
described in this subparagraph 
is— 
(I) a cash matching port-
folio or duration matching 
portfolio consisting of invest-
ment grade (as rated by a na-
tionally recognized statistical 
rating organization) fixed in-
come investments, including 
United States dollar-denomi-
nated public or private debt 
obligations issued or guaran-
teed by the United States or a 
foreign 
issuer, 
which 
are 
tradeable in United States 
currency and are issued at 
fixed or zero coupon rates; or 
(II) any other portfolio 
prescribed by the Secretary of 
the Treasury in regulations 
which has a similar risk pro-
file to the portfolios described 
in subclause (I) and is equally 
protective of the interests of 
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participants 
and 
bene-
ficiaries. 
Once implemented, such a port-
folio shall be maintained until all 
liabilities 
to 
participants 
and 
beneficiaries in pay status at the 
time of the loan are satisfied. 
(ii) FIDUCIARY
DUTY.—Any in-
vestment manager of a portfolio 
under this subparagraph shall ac-
knowledge in writing that such 
person is a fiduciary under the 
Employee Retirement Income Se-
curity Act of 1974 with respect to 
the plan. 
(iii) TREATMENT
OF
PARTICI-
PANTS AND BENEFICIARIES.—Partici-
pants and beneficiaries covered 
by a portfolio under this subpara-
graph shall continue to be treated 
as participants and beneficiaries 
of the plan, including for pur-
poses of title IV of the Employee 
Retirement Income Security Act 
of 1974. 
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(D) ACCOUNTING.— 
(i) IN GENERAL.—Annuity con-
tracts purchased and portfolios 
implemented 
under 
this 
para-
graph shall be used solely to pro-
vide the benefits described in 
paragraph (1) until all such bene-
fits have been paid and shall be 
accounted for separately from the 
other assets of the plan. 
(ii) OVERSIGHT OF NON-ANNUITY 
INVESTMENTS.— 
(I) IN GENERAL.—Any port-
folio implemented under this 
paragraph shall be subject to 
oversight by the Pension Re-
habilitation 
Administration, 
including a mandatory tri-
ennial review of the adequacy 
of the portfolio to provide the 
benefits described in para-
graph (1) and approval (to be 
provided within a reasonable 
period of time) of any deci-
sion by the plan sponsor to 
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change the investment man-
ager of the portfolio. 
(II) REMEDIAL
ACTION.—If 
the triennial review under 
subclause (I) determines an 
inadequacy, the plan sponsor 
shall take remedial action to 
ensure that the inadequacy 
will be cured within 5 years of 
the review. 
(E) OMBUDSPERSON.—The Partici-
pant and Plan Sponsor Advocate es-
tablished under section 4004 of the 
Employee Retirement Income Secu-
rity 
Act 
of 
1974 
shall 
act 
as 
ombudsperson for participants and 
beneficiaries on behalf of whom an-
nuity contracts are purchased or who 
are covered by a portfolio under this 
paragraph. 
(e) COLLECTION OF REPAYMENT.—Except as 
provided in subsection (f), the Pension Reha-
bilitation Administration shall make every ef-
fort to collect repayment of loans under this 
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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 sec-
tion when due, the Pension Rehabilitation Ad-
ministration shall negotiate with the plan 
sponsor revised terms for repayment (includ-
ing installment payments over a reasonable 
period or forgiveness of a portion of the loan 
principal), but only to the extent necessary to 
avoid 
insolvency 
in 
the 
subsequent 
months. 
(g) AUTHORITY TO ISSUE RULES, ETC.—The 
Director of the Pension Rehabilitation Admin-
istration, in consultation with the Pension 
Benefit Guaranty Corporation and the De-
partment of Labor, is authorized to issue 
rules regarding the form, content, and proc-
ess of applications for loans under this sec-
tion, actuarial standards and assumptions to 
be used in making estimates and projections 
for purposes of such applications, and as-
sumptions regarding interest rates, mortality, 
and distributions with respect to a portfolio 
described in subsection (d)(3)(C). 
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(h) COORDINATION WITH TAXATION OF UNRE-
LATED BUSINESS INCOME.—Subparagraph (A) of 
section 514(c)(6) of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking ‘‘or’’ at the end of 
clause (i); 
(2) by striking the period at the end 
of clause (ii)(II) and inserting ‘‘, or’’; and 
(3) by adding at the end the following 
new clause: 
‘‘(iii) indebtedness with re-
spect to a multiemployer plan 
under a loan made by the Pension 
Rehabilitation 
Administration 
pursuant to section 4 of the Reha-
bilitation for Multiemployer Pen-
sions Act of 2019.’’. 
SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND 
FUNDING RULES. 
(a) AMENDMENT
TO
INTERNAL
REVENUE 
CODE
OF 1986.—Section 432 of the Internal 
Revenue Code of 1986 is amended by adding 
at the end the following new subsection: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING 
PENSION REHABILITATION LOANS.— 
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‘‘(1) DETERMINATION OF WITHDRAWAL LI-
ABILITY.— 
‘‘(A) IN GENERAL.—If any employer 
participating in a plan at the time the 
plan receives a loan under section 
4(a) of the Rehabilitation for Multi-
employer Pensions Act of 2019 with-
draws from the plan before the end of 
the 30-year period beginning on the 
date of the loan, the withdrawal li-
ability of such employer shall be de-
termined under the Employee Retire-
ment Income Security Act of 1974— 
‘‘(i) 
by 
applying 
section 
4219(c)(1)(D) of the Employee Re-
tirement Income Security 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 nonforfeitable benefits under 
the plan at the time of the 
deemed termination by using the 
interest assumptions prescribed 
for purposes of section 4044 of the 
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Employee Retirement Income Se-
curity Act of 1974, as prescribed 
in the regulations under section 
4281 of the Employee Retirement 
Income Security Act of 1974 in the 
case of such a mass withdrawal. 
‘‘(B) ANNUITY
CONTRACTS
AND
IN-
VESTMENT PORTFOLIOS PURCHASED WITH 
LOAN FUNDS.—Annuity contracts pur-
chased and portfolios implemented 
under section 4(d)(3) of the Rehabili-
tation for Multiemployer Pensions 
Act of 2019 shall not be taken into ac-
count in determining the withdrawal 
liability of any employer under sub-
paragraph (A), but the amount equal 
to the greater of— 
‘‘(i) 
the 
benefits 
provided 
under such contracts or portfolios 
to participants and beneficiaries, 
or 
‘‘(ii) the remaining payments 
due on the loan under section 4(a) 
of such Act, 
shall be so taken into account. 
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‘‘(2) COORDINATION
WITH
FUNDING
RE-
QUIREMENTS.—In the case of a plan which 
receives a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pen-
sions Act of 2019— 
‘‘(A) annuity contracts purchased 
and portfolios implemented under 
section 4(d)(3) of such Act, and the 
benefits provided to participants and 
beneficiaries under such contracts or 
portfolios, shall not be taken into ac-
count in determining minimum re-
quired contributions under section 
412, 
‘‘(B) payments on the interest and 
principal under the loan, and any 
benefits owed in excess of those pro-
vided under such contracts or port-
folios, shall be taken into account as 
liabilities for purposes of such sec-
tion, and 
‘‘(C) if such a portfolio is pro-
jected due to unfavorable investment 
or actuarial experience to be unable 
to fully satisfy the liabilities which it 
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covers, the amount of the liabilities 
projected to be unsatisfied shall be 
taken into account as liabilities for 
purposes of such section.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 305 of 
the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1085) is amended by add-
ing at the end the following new subsection: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING 
PENSION REHABILITATION LOANS.— 
‘‘(1) DETERMINATION OF WITHDRAWAL LI-
ABILITY.— 
‘‘(A) IN GENERAL.—If any employer 
participating in a plan at the time the 
plan receives a loan under section 
4(a) of the Rehabilitation for Multi-
employer Pensions Act of 2019 with-
draws from the plan before the end of 
the 30-year period beginning on the 
date of the loan, the withdrawal li-
ability of such employer shall be de-
termined— 
‘‘(i) 
by 
applying 
section 
4219(c)(1)(D) as if the plan were 
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terminating by the withdrawal of 
every employer from the plan, 
and 
‘‘(ii) by determining the value 
of nonforfeitable benefits under 
the plan at the time of the 
deemed termination by using the 
interest assumptions prescribed 
for purposes of section 4044, as 
prescribed 
in 
the 
regulations 
under section 4281 in the case of 
such a mass withdrawal. 
‘‘(B) ANNUITY
CONTRACTS
AND
IN-
VESTMENT PORTFOLIOS PURCHASED WITH 
LOAN FUNDS.—Annuity contracts pur-
chased and portfolios implemented 
under section 4(d)(3) of the Rehabili-
tation for Multiemployer Pensions 
Act of 2019 shall not be taken into ac-
count in determining the withdrawal 
liability of any employer under sub-
paragraph (A), but the amount equal 
to the greater of— 
‘‘(i) 
the 
benefits 
provided 
under such contracts or portfolios 
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to participants and beneficiaries, 
or 
‘‘(ii) the remaining payments 
due on the loan under section 4(a) 
of such Act, 
shall be so taken into account. 
‘‘(2) COORDINATION
WITH
FUNDING
RE-
QUIREMENTS.—In the case of a plan which 
receives a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pen-
sions Act of 2019— 
‘‘(A) annuity contracts purchased 
and portfolios implemented under 
section 4(d)(3) of such Act, and the 
benefits provided to participants and 
beneficiaries under such contracts or 
portfolios, shall not be taken into ac-
count in determining minimum re-
quired contributions under section 
302, 
‘‘(B) payments on the interest and 
principal under the loan, and any 
benefits owed in excess of those pro-
vided under such contracts or port-
folios, shall be taken into account as 
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liabilities for purposes of such sec-
tion, and 
‘‘(C) if such a portfolio is pro-
jected due to unfavorable investment 
or actuarial experience to be unable 
to fully satisfy the liabilities which it 
covers, the amount of the liabilities 
projected to be unsatisfied shall be 
taken into account as liabilities for 
purposes of such section.’’. 
SEC. 6. ISSUANCE OF TREASURY BONDS. 
The Secretary of the Treasury (in con-
sultation with the Director of the Pension Re-
habilitation Administration established under 
section 2) shall from time to time transfer 
from the general fund of the Treasury to the 
Pension Rehabilitation Trust Fund estab-
lished under section 9512 of the Internal Rev-
enue Code of 1986 such amounts as are nec-
essary to fund the loan program under section 
4 of this Act, including from proceeds from 
the Secretary’s issuance of obligations under 
chapter 31 of title 31, United States Code. 
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SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHA-
BILITATION LOANS. 
(a) IN GENERAL.—Subpart E of part III of 
subchapter A of chapter 61 of the Internal 
Revenue Code of 1986 is amended by adding 
at the end the following new section: 
‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE-
HABILITATION LOANS. 
‘‘(a) IN GENERAL.—In the case of a plan re-
ceiving a loan under section 4(a) of the Reha-
bilitation for Multiemployer Pensions Act of 
2019, with respect to the first plan year begin-
ning 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 spon-
sor shall file with the Secretary a report (in-
cluding appropriate documentation and actu-
arial certifications from the plan actuary, as 
required by the Secretary) that contains— 
‘‘(1) the funded percentage (as de-
fined in section 432(i)(2)) as of the first 
day of such plan year, and the underlying 
actuarial value of assets (determined 
with regard, and without regard, to annu-
ity contracts purchased and portfolios 
implemented with proceeds of such loan) 
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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 para-
graph (1)) as of the last day of the plan 
year preceding such plan year, 
‘‘(3) the total value of all contribu-
tions made by employers and employees 
during the plan year preceding such plan 
year, 
‘‘(4) the total value of all benefits paid 
during the plan year preceding such plan 
year, 
‘‘(5) cash flow projections for such 
plan year and the 9 succeeding plan 
years, and the assumptions used in mak-
ing such projections, 
‘‘(6) funding standard account projec-
tions for such plan year and the 9 suc-
ceeding plan years, and the assumptions 
relied upon in making such projections, 
‘‘(7) the total value of all investment 
gains or losses during the plan year pre-
ceding such plan year, 
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‘‘(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 reduc-
tion 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 assess-
ment of the withdrawal liability paid, the 
annual payment amount, and the number 
of years remaining in the payment sched-
ule with respect to such withdrawal li-
ability, 
‘‘(11) any material changes to bene-
fits, accrual rates, or contribution rates 
during the plan year preceding such plan 
year, and whether such changes relate to 
the terms of the loan, 
‘‘(12) details regarding any funding 
improvement plan or rehabilitation plan 
and updates to such plan, 
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‘‘(13) the number of participants and 
beneficiaries during the plan year pre-
ceding such plan year who are active par-
ticipants, the number of participants and 
beneficiaries in pay status, and the num-
ber of terminated vested participants and 
beneficiaries, 
‘‘(14) the amount of any financial as-
sistance received under section 4261 of 
the Employee Retirement Income Secu-
rity Act of 1974 to pay benefits during the 
preceding 
plan 
year, 
and 
the 
total 
amount of such financial assistance re-
ceived for all preceding years, 
‘‘(15) the information contained on 
the most recent annual funding notice 
submitted by the plan under section 
101(f) of the Employee Retirement In-
come Security Act of 1974, 
‘‘(16) the information contained on 
the most recent annual return under sec-
tion 6058 and actuarial report under sec-
tion 6059 of the plan, and 
‘‘(17) copies of the plan document and 
amendments, other retirement benefit or 
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ancillary benefit plans relating to the 
plan and contribution obligations under 
such plans, a breakdown of administra-
tive expenses of the plan, participant cen-
sus data and distribution of benefits, the 
most recent actuarial valuation report as 
of the plan year, copies of collective bar-
gaining agreements, and financial re-
ports, and such other information as the 
Secretary, in consultation with the Direc-
tor of the Pension Rehabilitation Admin-
istration, may require. 
‘‘(b) ELECTRONIC SUBMISSION.—The report 
required under subsection (a) shall be sub-
mitted electronically. 
‘‘(c) INFORMATION SHARING.—The Secretary 
shall share the information in the report 
under subsection (a) with the Secretary of 
Labor and the Director of the Pension Benefit 
Guaranty Corporation. 
‘‘(d) 
REPORT
TO
PARTICIPANTS, 
BENE-
FICIARIES, AND EMPLOYERS.—Each plan spon-
sor required to file a report under subsection 
(a) shall, before the expiration of the time pre-
scribed for the filing of such report, also pro-
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vide a summary (written in a manner so as to 
be understood by the average plan partici-
pant) of the information in such report to par-
ticipants and beneficiaries in the plan and to 
each employer with an obligation to con-
tribute 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 reha-
bilitation loans)’’ after ‘‘deferred com-
pensation)’’; 
(2) by inserting ‘‘($100 in the case of 
failures under section 6059A)’’ after ‘‘$25’’; 
and 
(3) by adding at the end the fol-
lowing: ‘‘In the case of a failure with re-
spect to section 6059A, the amount im-
posed 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 sub-
chapter A of chapter 61 of the Internal Rev-
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enue Code of 1986 is amended by adding at 
the end the following new item: 
‘‘Sec. 6059A. Reports of plans receiving pension rehabilitation 
loans.’’. 
SEC. 8. PBGC FINANCIAL ASSISTANCE. 
(a) IN GENERAL.—Section 4261 of the Em-
ployee Retirement Income Security Act of 
1974 (29 U.S.C. 1431) is amended by adding at 
the end the following new subsection: 
‘‘(d)(1) The plan sponsor of a multiem-
ployer plan— 
‘‘(A) which is in critical and declining 
status (within the meaning of section 
305(b)(6)) as of the date of the enactment 
of this subsection, or with respect to 
which a suspension of benefits has been 
approved under section 305(e)(9) as of 
such date; 
‘‘(B) which, as of such date of enact-
ment, is in critical status (within the 
meaning of section 305(b)(2)), has a fund-
ed percentage of less than 40 percent (as 
determined for purposes of section 305), 
and has a ratio of active to inactive par-
ticipants which is less than 2 to 3; or 
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‘‘(C) which is insolvent for purposes 
of section 418E of the Internal Revenue 
Code of 1986 as of such date of enact-
ment, if the plan became insolvent after 
December 16, 2014, and has not been ter-
minated; 
and which is applying for a loan under sec-
tion 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019 may also apply to 
the corporation for financial assistance under 
this subsection, by jointly submitting such ap-
plications in accordance with section 4(d)(2) 
of such Act. The application for financial as-
sistance under this subsection shall dem-
onstrate, based on projections by the plan ac-
tuary, that after the receipt of the anticipated 
loan amount under section 4(a) of such Act, 
the plan will still become (or remain) insol-
vent within the 30-year period beginning on 
the date of the loan. 
‘‘(2) In reviewing an application under 
paragraph (1), the corporation shall review 
the demonstrations and assumptions sub-
mitted with the loan application under sec-
tion 4(c) of the Rehabilitation for Multiem-
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ployer Pensions Act of 2019 and provide guid-
ance regarding such assumptions prior to ap-
proving any application for financial assist-
ance under this subsection. The corporation 
may deny any application if the assumptions 
and determinations are unreasonable, or in-
consistent with rules issued by the corpora-
tion, and the plan and the corporation are un-
able to reach agreement on such assumptions 
and determinations. 
‘‘(3) In the case of a plan described in 
paragraph (1)(A) or (1)(B), the financial assist-
ance provided pursuant to such application 
under this subsection shall be the amount (de-
termined by the plan actuary and submitted 
on the application) equal to the sum of— 
‘‘(A) the percentage of benefits of par-
ticipants and beneficiaries of the plan in 
pay status at the time of the application, 
and 
‘‘(B) the percentage of future benefits 
to which participants who have sepa-
rated from service but are not yet in pay 
status are entitled, 
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which, if such percentage were paid by the 
corporation in combination with the loan, 
would allow the plan to avoid projected insol-
vency. Such amount shall not exceed the max-
imum guaranteed benefit with respect to all 
participants and beneficiaries of the plan 
under sections 4022A and 4022B. For this pur-
pose, 
the 
maximum 
guaranteed 
benefit 
amount shall be determined by disregarding 
any loan available from the Pension Rehabili-
tation Administration and shall be deter-
mined as if the plan were insolvent on the 
date of the application. Further, the present 
value of the maximum guaranteed benefit 
amount with respect to such participants and 
beneficiaries may be calculated in the aggre-
gate, rather than by reference to the benefit 
of each such participant or beneficiary. 
‘‘(4) In the case of a plan described in 
paragraph (1)(C), the financial assistance pro-
vided pursuant to such application under this 
subsection shall be the amount (determined 
by the plan actuary and submitted on the ap-
plication) which, if such amount were paid by 
the corporation in combination with the loan 
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and any other assistance being provided to 
the plan by the corporation at the time of the 
application, would enable the plan to emerge 
from the projected insolvency. 
‘‘(5)(A) Except as provided in subpara-
graph (B), the corporation shall provide the 
financial assistance under this subsection 
only in such amounts as the corporation de-
termines, at the time of approval and at the 
beginning of each plan year beginning there-
after during the period of assistance, are nec-
essary for the plan to avoid insolvency during 
the 5 plan year period beginning with the cur-
rent plan year. 
‘‘(B) In the case of a plan described in 
paragraph (1)(C), the financial assistance 
under this subsection shall be provided in a 
lump sum if deemed necessary by the cor-
poration, and in no case later than December 
31, 2020. 
‘‘(6) Subsections (b) and (c) shall apply to 
financial assistance under this subsection as 
if it were provided under subsection (a), ex-
cept that the terms for repayment under sub-
section (b)(2) shall not require the financial 
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assistance to be repaid before the date on 
which the loan under section 4(a) of the Reha-
bilitation for Multiemployer Pensions Act of 
2019 is repaid in full. 
‘‘(7) The corporation may forgo repayment 
of the financial assistance provided under 
this subsection if necessary to avoid any sus-
pension of the accrued benefits of partici-
pants.’’. 
(b) 
APPROPRIATIONS.—There 
is 
appro-
priated to the Director of the Pension Benefit 
Guaranty Corporation such sums as may be 
necessary for each fiscal year to provide the 
financial assistance described in section 
4261(d) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431(d)) (as 
added by this section) (including necessary 
administrative and operating expenses relat-
ing to such assistance). 
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Union Calendar No. 123 
116TH CONGRESS 
1ST SESSION 
H. R. 397 
[Report No. 116–159, Parts I and II] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
create a Pension Rehabilitation Trust Fund, to 
establish a Pension Rehabilitation Administration 
within the Department of the Treasury to make 
loans to multiemployer defined benefit plans, and 
for other purposes. 
JULY 19, 2019 
Reported from the Committee on Education and Labor 
with an amendment 
JULY 19, 2019 
The Committee on Appropriations discharged; committed 
to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
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