that are projected to become insolvent within 10 
years). 
‘‘(c)(1) A partition under this section shall consist of 
a transfer to the plan created by the partition order of 
benefits to which eligible participants and beneficiaries 
were entitled under the plan that was partitioned, in an 
amount not to exceed the amount that would be guaran-
teed under section 4022A if the plan were insolvent as 
of the date of the partition order. 
‘‘(2) The corporation’s partition order shall provide 
for an annual transfer by the corporation to the plan cre-
ated by the partition order of an amount equal to the year-
ly benefits that would be guaranteed under section 4022A 
to the eligible participants and beneficiaries if the plan 
were insolvent as of the date of the partition order. 
‘‘(3)(A) Where practicable, the initial transfer in ac-
cordance with paragraph (2) shall be completed at least 
60 days prior to the plan year that immediately follows 
the partition start date. The partition order shall require 
that the initial transfer be sufficient to satisfy the guaran-
teed benefits in the first plan year of the partitioned plan. 
‘‘(B) Subsequent transfers in accordance with para-
graph (2) shall be completed at least 60 days prior to the 
first day of each succeeding plan year. 
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‘‘(d)(1)(A) The plan created by the partition order 
is a successor plan to which section 4022A applies. 
‘‘(B) At the discretion of the plan sponsor, the plan 
created by the partition order may remain a part of the 
plan that was partitioned or be maintained as a separate 
plan. 
‘‘(2)(A) The plan sponsor and the administrator of 
an eligible multiemployer plan prior to the partition shall 
be the plan sponsor and the administrator, respectively, 
of the plan created by the partition order, and shall adopt 
reasonable procedures to reduce administrative expenses 
and to coordinate benefit payments and communications 
with the participants and beneficiaries in the plan created 
by the partition order. 
‘‘(B) Benefit payments equal to the amount of an eli-
gible participant or beneficiary’s guaranteed benefits shall 
be paid to such participant or beneficiary and may be— 
‘‘(i) paid separately by the plan created by the 
partition order; or 
‘‘(ii) paid in a single, monthly payment by the 
plan that was partitioned. 
‘‘(3) In the event an employer withdraws from the 
plan that was partitioned, withdrawal liability shall be 
computed under section 4201 with respect to both the plan 
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that was partitioned and the plan created by the partition 
order. 
‘‘(e) In addition to the payment of guaranteed bene-
fits under subsection (d)(2)(B), each eligible participant 
or beneficiary of the plan created by the partition order 
shall receive a monthly benefit for each month the benefit 
is in pay status in an amount that— 
‘‘(1) the corporation, in consultation with the 
Participant and Plan Sponsor Advocate, determines 
to be fair to the plan, the participant or beneficiary, 
the employers, and the corporation; and 
‘‘(2) is at least equal to the lesser of— 
‘‘(A) the monthly nonforfeitable benefit for 
such participant or beneficiary payable under 
the plan that was partitioned; or 
‘‘(B) 80 percent of the maximum benefit 
commencing at age 65 guaranteed under sec-
tion 4022(a) for participants and beneficiaries 
in terminated single employer plans, unreduced 
for early retirement. 
Such monthly benefit may be combined with the monthly 
payment under subsection (d)(2)(B)(ii). 
‘‘(f)(1) The corporation shall establish a legacy fund 
for the purposes of funding the administrative and benefit 
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costs to the corporation arising from partitions under this 
section, as described in paragraph (2). 
‘‘(2) Any administrative and benefit costs to the cor-
poration arising from a partition ordered under this sec-
tion in excess of amounts available in such legacy fund 
shall be paid from the fund for basic benefits guaranteed 
for multiemployer plans. 
‘‘(g) Only one partition order shall be issued with re-
spect to each eligible multiemployer plan. 
‘‘(h) For purposes of this subsection, the term ‘eligi-
ble participant or beneficiary’ means a participant or ben-
eficiary of an eligible multiemployer plan that is parti-
tioned in accordance with a petition order under this sec-
tion, and who is an employee or beneficiary of an employee 
of an employer that is described in subsection (b)(3). 
‘‘(i) Not later than 14 days after the issuance of a 
partition order under this section, the corporation shall 
provide notice of such order to the Committee on Finance 
of the Senate, the Committee on Health, Education, 
Labor, and Pensions of the Senate, the Committee on 
Education and the Workforce of the House of Representa-
tives, the Committee on Ways and Means of the House 
of Representatives, and to all eligible participants or bene-
ficiaries whose guaranteed benefits will be paid directly or 
indirectly by the plan created by the partition order.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to plan years begin-
ning after the date of enactment of this Act. 
(c) TRANSFERS TO LEGACY FUND.—The Secretary 
of the Treasury shall from time to time transfer from the 
general fund of the Treasury to the legacy fund estab-
lished under section 4233(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1413(f)(1)) 
(as amended by subsection (a)) amounts equal to the in-
crease in revenues to the Treasury by reason of the 
amendments made by sections 6 and 7 of this Act. 
(d) TRANSFERS BETWEEN FUNDS OF THE PBGC.— 
Section 4005 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1305) is amended by adding at 
the end the following: 
‘‘(i)(1) An eighth fund is established under section 
4233(f) and credited with the amounts described in sec-
tion 3(c) of the Keeping America’s Pension Promises Act. 
‘‘(2) Notwithstanding subsection (g), the corporation 
may transfer amounts into the legacy fund established 
under section 4233(f)(1) from other funds established 
under this section, as the corporation determines appro-
priate.’’. 
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SEC. 4. EMPLOYER WITHDRAWALS RELATING TO MULTIEM-
PLOYER PLANS. 
The matter preceding paragraph (1) of section 
4225(b) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1405(b)) is amended by inserting ‘‘, 
including an employer undergoing liquidation under chap-
ter 7 of title 11, United States Code, or similar provisions 
of State law,’’ after ‘‘dissolution,’’. 
SEC. 5. PRIORITIES OF CLAIMS IN BANKRUPTCY. 
(a) IN GENERAL.—Section 507(a) of title 11, United 
States Code, is amended— 
(1) by redesignating paragraphs (1) through 10 
as paragraphs (2) through (11), respectively; 
(2) by inserting before paragraph (2) (as redes-
ignated) the following: 
‘‘(1) First, withdrawal liability determined 
under part 1 of subtitle E of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1381 et seq.).’’; 
(3) in the matter preceding subparagraph (A) 
of paragraph (2) (as redesignated), by striking 
‘‘First:’’ and inserting ‘‘Second:’’; 
(4) in paragraph (3) (as redesignated), by strik-
ing ‘‘Second,’’ and inserting ‘‘Third,’’; 
(5) in paragraph (4) (as redesignated), by strik-
ing ‘‘Third,’’ and inserting ‘‘Fourth,’’; 
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(6) in the matter preceding subparagraph (A) 
of paragraph (5) (as redesignated), by striking 
‘‘Fourth,’’ and inserting ‘‘Fifth,’’; 
(7) in the matter preceding subparagraph (A) 
of paragraph (6) (as redesignated), by striking 
‘‘Fifth,’’ and inserting ‘‘Sixth,’’; 
(8) in the matter preceding subparagraph (A) 
of paragraph (7) (as redesignated), by striking 
‘‘Sixth,’’ and inserting ‘‘Seventh,’’; 
(9) in paragraph (8) (as redesignated), by strik-
ing ‘‘Seventh,’’ and inserting ‘‘Eighth,’’; 
(10) in the matter preceding subparagraph (A) 
of paragraph (9) (as redesignated), by striking 
‘‘Eighth,’’ and inserting ‘‘Ninth,’’; 
(11) in paragraph (10) (as redesignated), by 
striking ‘‘Ninth,’’ and inserting ‘‘Tenth,’’; and 
(12) in paragraph (11) (as redesignated), by 
striking ‘‘Tenth,’’ and inserting ‘‘Eleventh,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 502(i) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(8)’’ 
and inserting ‘‘section 507(a)(9)’’. 
(2) Section 503(b)(1)(B)(i) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’. 
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(3) Section 507(d) of title 11, United States 
Code, is amended by striking ‘‘(a)(1), (a)(4), (a)(5), 
(a)(6), (a)(7), (a)(8), or (a)(9)’’ and inserting 
‘‘(a)(2), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9), or 
(a)(10)’’. 
(4) Section 523(A) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(3) or 
507(a)(8)’’ and inserting ‘‘section 507(a)(4) or 
507(a)(9)’’. 
(5) Section 724 of title 11, United States Code, 
is amended— 
(A) in subsection (b)(2), by striking ‘‘sec-
tion 507(a)(1)(C) or 507(a)(2)’’ and inserting 
‘‘section 507(a)(2)(C) or 507(a)(3)’’; and 
(B) in subsection (f)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(4)’’ and inserting ‘‘section 
507(a)(5)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(5)’’ and inserting ‘‘section 
507(a)(6)’’. 
(6) Section 726(b) of title 11, United States 
Code, is amended by striking ‘‘paragraph (1), (2), 
(3), (4), (5), (6), (7), (8), (9), or (10) of section 
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507(a)’’ and inserting ‘‘paragraph (2), (3), (4), (5), 
(6), (7), (8), (9), (10), or (11) of section 507(a)’’. 
(7) Section 752(a) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(2)’’ 
and inserting ‘‘section 507(a)(3)’’. 
(8) Section 766 of title 11, United States Code, 
is amended— 
(A) in subsection (h), by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’; 
and 
(B) in subsection (i)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’. 
(9) Section 901 of title 11, United States Code, 
is amended by striking ‘‘507(a)(2)’’ and inserting 
‘‘507(a)(3)’’. 
(10) Section 943(b)(5) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(11) Section 1123(a)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
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507(a)(2), 507(a)(3), or 507(a)(8)’’ and inserting 
‘‘section 507(a)(3), 507(a)(4), or 507(a)(9)’’. 
(12) Section 1129(a)(9) of title 11, United 
States Code, is amended— 
(A) in subparagraph (A), by striking ‘‘sec-
tion 507(a)(3) or 507(a)(4)’’ and inserting 
‘‘section 507(a)(4) or 507(a)(5)’’; 
(B) in the matter preceding clause (i) of 
subparagraph 
(B), 
by 
striking 
‘‘section 
507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6), or 
507(a)(7)’’ and inserting ‘‘section 507(a)(2), 
507(a)(5), 507(a)(6), 507(a)(7), or 507(a)(8)’’; 
(C) in the matter preceding clause (i) of 
subparagraph 
(C), 
by 
striking 
‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’; 
and 
(D) in subparagraph (D), by striking ‘‘sec-
tion 
507(a)(8)’’ 
and 
inserting 
‘‘section 
507(a)(9)’’. 
(13) Section 1222(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘507(a)(2)(B)’’. 
(14) Section 1226(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
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(15) Section 1322(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘section 507(a)(2)(B)’’. 
(16) Section 1326(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(17) Section 1328(a)(2) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)(C)’’ and inserting ‘‘section 507(a)(9)(C)’’. 
SEC. 6. TRANSACTION TAX. 
(a) IN GENERAL.—Chapter 36 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter B the following new subchapter: 
‘‘Subchapter C—Tax on Trading Transactions 
‘‘Sec. 4475. Tax on trading transactions. 
‘‘SEC. 4475. TAX ON TRADING TRANSACTIONS. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
a tax on each covered transaction with respect to any secu-
rity. 
‘‘(b) RATE OF TAX.—The tax imposed under sub-
section (a) with respect to any covered transaction shall 
be 0.03 percent of the specified base amount with respect 
to such covered transaction. 
‘‘(c) SPECIFIED BASE AMOUNT.—For purposes of 
this section, the term ‘specified base amount’ means— 
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‘‘(1) except as provided in paragraph (2), the 
fair market value of the security (determined as of 
the time of the covered transaction), and 
‘‘(2) in the case of any payment described in 
subsection (h), the amount of such payment. 
‘‘(d) COVERED TRANSACTION.—For purposes of this 
section, the term ‘covered transaction’ means— 
‘‘(1) except as provided in paragraph (2), any 
purchase if— 
‘‘(A) such purchase occurs or is cleared on 
a facility located in the United States, or 
‘‘(B) the purchaser or seller is a United 
States person, and 
‘‘(2) any transaction with respect to a security 
described in subparagraph (D), (E), or (F) of sub-
section (e)(1), if— 
‘‘(A) such security is traded or cleared on 
a facility located in the United States, or 
‘‘(B) any party with rights under such se-
curity is a United States person. 
‘‘(e) SECURITY AND OTHER DEFINITIONS.—For pur-
poses of this section— 
‘‘(1) 
IN
GENERAL.—The 
term 
‘security’ 
means— 
‘‘(A) any share of stock in a corporation, 
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‘‘(B) any partnership or beneficial owner-
ship interest in a partnership or trust, 
‘‘(C) any note, bond, debenture, or other 
evidence of indebtedness, 
‘‘(D) any evidence of an interest in, or a 
derivative financial instrument with respect to, 
any security or securities described in subpara-
graph (A), (B), or (C), 
‘‘(E) any derivative financial instrument 
with respect to any currency or commodity, and 
‘‘(F) any other derivative financial instru-
ment any payment with respect to which is cal-
culated by reference to any specified index. 
‘‘(2) DERIVATIVE
FINANCIAL
INSTRUMENT.— 
The term ‘derivative financial instrument’ includes 
any option, forward contract, futures contract, no-
tional principal contract, or any similar financial in-
strument. 
‘‘(3) SPECIFIED
INDEX.—The term ‘specified 
index’ means any one or more of any combination 
of— 
‘‘(A) a fixed rate, price, or amount, or 
‘‘(B) a variable rate, price, or amount,
which is based on any current objectively deter-
minable information which is not within the control 
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of any of the parties to the contract or instrument 
and is not unique to any of the parties’ cir-
cumstances. 
‘‘(4) TREATMENT OF EXCHANGES.— 
‘‘(A) IN GENERAL.—An exchange shall be 
treated as the sale of the property transferred 
and a purchase of the property received by each 
party to the exchange. 
‘‘(B) CERTAIN DEEMED EXCHANGES.—In 
the case of a distribution treated as an ex-
change for stock under section 302 or 331, the 
corporation making such distribution shall be 
treated as having purchased such stock for pur-
poses of this section. 
‘‘(f) EXCEPTIONS.— 
‘‘(1) EXCEPTION FOR INITIAL ISSUES.—No tax 
shall be imposed under subsection (a) on any cov-
ered transaction with respect to the initial issuance 
of any security described in subparagraph (A), (B), 
or (C) of subsection (e)(1). 
‘‘(2) EXCEPTION FOR CERTAIN TRADED SHORT- 
TERM INDEBTEDNESS.—A note, bond, debenture, or 
other evidence of indebtedness which— 
‘‘(A) is traded on a trading facility located 
in the United States, and 
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‘‘(B) has a fixed maturity of not more 
than 100 days, 
shall not be treated as described in subsection 
(e)(1)(C). 
‘‘(3) EXCEPTION FOR SECURITIES LENDING AR-
RANGEMENTS.—No tax shall be imposed under sub-
section (a) on any covered transaction with respect 
to which gain or loss is not recognized by reason of 
section 1058. 
‘‘(g) BY WHOM PAID.— 
‘‘(1) IN GENERAL.—The tax imposed by this 
section shall be paid by— 
‘‘(A) in the case of a transaction which oc-
curs or is cleared on a facility located in the 
United States, such facility, and 
‘‘(B) in the case of a purchase not de-
scribed in subparagraph (A) which is executed 
by a broker (as defined in section 6045(c)(1)) 
which is a United States person, such broker. 
‘‘(2) SPECIAL
RULES
FOR
DIRECT, 
ETC., 
TRANSACTIONS.—In the case of any transaction to 
which paragraph (1) does not apply, the tax imposed 
by this section shall be paid by— 
‘‘(A) in the case of a transaction described 
in subsection (d)(1)— 
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‘‘(i) the purchaser if the purchaser is 
a United States person, and 
‘‘(ii) the seller if the purchaser is not 
a United States person, and 
‘‘(B) in the case of a transaction described 
in subsection (d)(2)— 
‘‘(i) the payor if the payor is a United 
States person, and 
‘‘(ii) the payee if the payor is not a 
United States person. 
‘‘(h) CERTAIN PAYMENTS TREATED AS SEPARATE 
TRANSACTIONS.—Except as otherwise provided by the 
Secretary, any payment with respect to a security de-
scribed in subparagraph (D), (E), or (F) of subsection 
(e)(1) shall be treated as a separate transaction for pur-
poses of this section, including— 
‘‘(1) any net initial payment, net final or termi-
nating payment, or net periodical payment with re-
spect to a notional principal contract (or similar fi-
nancial instrument), 
‘‘(2) any payment with respect to any forward 
contract (or similar financial instrument), and 
‘‘(3) any premium paid with respect to any op-
tion (or similar financial instrument). 
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‘‘(i) ADMINISTRATION.—The Secretary shall carry 
out this section in consultation with the Securities and Ex-
change Commission and the Commodity Futures Trading 
Commission. 
‘‘(j) GUIDANCE; REGULATIONS.—The Secretary 
shall— 
‘‘(1) provide guidance regarding such informa-
tion reporting concerning covered transactions as the 
Secretary deems appropriate, and 
‘‘(2) prescribe such regulations as are necessary 
or appropriate to prevent avoidance of the purposes 
of this section, including the use of non-United 
States persons in such transactions.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 36 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 
subchapter B the following new item: 
‘‘SUBCHAPTER C. TAX ON TRADING TRANSACTIONS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions made after Decem-
ber 31, 2017. 
Æ 
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