section (c)(4)(C) and inserting ‘‘waivers or ex-
tensions’’, 
(H) by striking ‘‘section 304(d)’’ in sub-
paragraph (A) of subsection (c)(7) and in para-
graph (2) of subsection (d) and inserting ‘‘sec-
tion 304(d) or section 306(d)’’, 
(I) by striking ‘‘and’’ at the end of sub-
clause (I) of subsection (c)(4)(C)(i) and adding 
‘‘or the accumulated funding deficiency under 
section 306, whichever is applicable,’’, 
(J) by striking ‘‘303(e)(2),’’ in subclause 
(II) of subsection (c)(4)(C)(i) and inserting 
‘‘303(e)(2) or 306(b)(2)(C), whichever is appli-
cable, and’’, 
(K) by adding immediately after subclause 
(II) of subsection (c)(4)(C)(i) the following new 
subclause: 
‘‘(III) the total amounts not paid 
by reason of an extension in effect 
under section 306(d),’’, 
(L) by striking ‘‘for waivers of’’ in clause 
(ii) of subsection (c)(4)(C) and inserting ‘‘for 
waivers or extensions with respect to’’, and 
(M) by striking ‘‘single-employer plan’’ in 
subparagraph (A) of subsection (a)(2) and in
clause (i) of subsection (c)(1)(B) and inserting 
‘‘single-employer plan (other than a CSEC 
plan)’’. 
(3) BENEFIT RESTRICTIONS.—Subsection (g) of 
section 206 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1056) is amended by 
adding at the end thereof the following new para-
graph: 
‘‘(12) CSEC PLANS.—This subsection shall not 
apply to a CSEC plan (as defined in section 
210(f)).’’. 
(4) BENEFIT
INCREASES.—Paragraph (3) of 
section 204(i) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1054(i)) is amend-
ed by striking ‘‘multiemployer plans’’ and inserting 
‘‘multiemployer plans or CSEC plans’’. 
(5) SECTION 103.—Subparagraph (B) of section 
103(d)(8) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1023(d)(8)) is amended 
by striking ‘‘303(h) and 304(c)(3)’’ and inserting 
‘‘303(h), 304(c)(3), and 306(c)(3)’’. 
(6) SECTION
502.—Subsection (c) of section 
502 of the Employee Retirement Income Security 
Act of 1974 is amended—
(A) by redesignating the last paragraph as 
paragraph (11), and 
(B) by adding at the end the following new 
paragraph: 
‘‘(12) The Secretary may assess a civil penalty 
against any sponsor of a CSEC plan of up to $100 
a day from the date of the plan sponsor’s failure to 
comply with the requirements of section 306(j)(3) to 
establish or update a funding restoration plan.’’. 
(7) SECTION 4003.—Subparagraph (B) of sec-
tion 4003(e)(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1303(e)(1)) is 
amended by striking ‘‘303(k)(1)(A) and (B) of this 
Act or section 430(k)(1)(A) and (B) of the Internal 
Revenue Code of 1986’’ and inserting ‘‘303(k)(1)(A) 
and (B) or 306(g)(1)(A) and (B) of this Act or sec-
tion 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) 
of the Internal Revenue Code of 1986’’. 
(8) SECTION 4010.—Paragraph (2) of section 
4010(b) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1310(b)) is amended by 
striking ‘‘303(k)(1)(A) and (B) of this Act or sec-
tion 430(k)(1)(A) and (B) of the Internal Revenue 
Code of 1986’’ and inserting ‘‘303(k)(1)(A) and (B) 
or 306(g)(1)(A) and (B) of this Act or section
430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of 
the Internal Revenue Code of 1986’’. 
(9) SECTION 4071.—Section 4071 of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1371) is amended by striking ‘‘section 
303(k)(4)’’ and inserting ‘‘section 303(k)(4) or 
306(g)(4)’’. 
SEC. 103. ELECTIONS. 
(a) ELECTION NOT TO BE TREATED AS A CSEC 
PLAN.—Subsection (f) of section 210 of the Employee Re-
tirement Income Security Act of 1974, as added by section 
101, is amended by adding at the end the following new 
paragraph: 
‘‘(3) ELECTION.— 
‘‘(A) IN GENERAL.—If a plan falls within 
the definition of a CSEC plan under this sub-
section (without regard to this paragraph), such 
plan shall be a CSEC plan unless the plan 
sponsor elects not later than the close of the 
first plan year of the plan beginning after De-
cember 31, 2013, not to be treated as a CSEC 
plan. An election under the preceding sentence 
shall take effect for such plan year and, once 
made, may be revoked only with the consent of 
the Secretary of the Treasury.
‘‘(B) SPECIAL RULE.—If a plan described 
in subparagraph (A) is treated as a CSEC plan, 
section 104 of the Pension Protection Act of 
2006, as amended by the Preservation of Ac-
cess to Care for Medicare Beneficiaries and 
Pension Relief Act of 2010, shall cease to apply 
to such plan as of the first date as of which 
such plan is treated as a CSEC plan.’’. 
(b) ELECTION TO CEASE TO BE TREATED AS AN 
ELIGIBLE CHARITY PLAN.—Subsection (d) of section 104 
of the Pension Protection Act of 2006, as added by section 
202 of the Preservation of Access to Care for Medicare 
Beneficiaries and Pension Relief Act of 2010, is amend-
ed— 
(1) by striking ‘‘For purposes of’’ and inserting 
‘‘(1) IN GENERAL.—For purposes of’’, and 
(2) by adding at the end the following: 
‘‘(2) ELECTION NOT TO BE AN ELIGIBLE CHAR-
ITY PLAN.—A plan sponsor may elect for a plan to 
cease to be treated as an eligible charity plan for 
plan years beginning after December 31, 2013. Such 
election shall be made at such time and in such form 
and manner as shall be prescribed by the Secretary 
of the Treasury. Any such election may be revoked
only with the consent of the Secretary of the Treas-
ury. 
‘‘(3) ELECTION
TO
USE
FUNDING
OPTIONS 
AVAILABLE TO OTHER PLAN SPONSORS.— 
‘‘(A) A plan sponsor that makes the elec-
tion described in paragraph (2) may elect for a 
plan to apply the rules described in subpara-
graphs (B), (C), and (D) for plan years begin-
ning after December 31, 2013. Such election 
shall be made at such time and in such form 
and manner as shall be prescribed by the Sec-
retary of the Treasury. Any such election may 
be revoked only with the consent of the Sec-
retary of the Treasury. 
‘‘(B) Under the rules described in this sub-
paragraph, for the first plan year beginning 
after December 31, 2013, a plan has— 
‘‘(i) an 11-year shortfall amortization 
base, 
‘‘(ii) a 12-year shortfall amortization 
base, and 
‘‘(iii) a 7-year shortfall amortization 
base. 
‘‘(C) Under the rules described in this sub-
paragraph, section 303(c)(2)(A) and (B) of the
Employee Retirement Income Security Act of 
1974, and section 430(c)(2)(A) and (B) of the 
Internal Revenue Code of 1986 shall be applied 
by— 
‘‘(i) in the case of an 11-year shortfall 
amortization base, substituting ‘11-plan- 
year period’ for ‘7-plan-year period’ wher-
ever such phrase appears, and 
‘‘(ii) in the case of a 12-year shortfall 
amortization base, substituting ‘12-plan- 
year period’ for ‘7-plan-year period’ wher-
ever such phrase appears. 
‘‘(D) Under the rules described in this sub-
paragraph, section 303(c)(7) of the Employee 
Retirement Income Security Act of 1974 and 
section 430(c)(7) of the Internal Revenue Code 
of 1986 shall apply to a plan for which an elec-
tion has been made under subparagraph (A). 
Such provisions shall apply in the following 
manner: 
‘‘(i) The first plan year beginning 
after December 31, 2013, shall be treated 
as an election year, and no other plan 
years shall be so treated.
‘‘(ii) 
All 
references 
in 
section 
303(c)(7) 
of 
such 
Act 
and 
section 
430(c)(7) of such Code to ‘February 28, 
2010’ or ‘March 1, 2010’ shall be treated 
as references to ‘February 28, 2013’ or 
‘March 1, 2013’, respectively. 
‘‘(E) For purposes of this paragraph, the 
11-year amortization base is an amount, deter-
mined for the first plan year beginning after 
December 31, 2013, equal to the unamortized 
principal amount of the shortfall amortization 
base (as defined in section 303(c)(3) of the Em-
ployee Retirement Income Security Act of 1974 
and section 430(c)(3) of the Internal Revenue 
Code of 1986) that would have applied to the 
plan for the first plan beginning after Decem-
ber 31, 2009, if— 
‘‘(i) the plan had never been an eligi-
ble charity plan, 
‘‘(ii) the plan sponsor had made the 
election 
described 
in 
section 
303(c)(2)(D)(i) of the Employee Retire-
ment Income Security Act of 1974 and in 
section 430(c)(2)(D)(i) of the Internal 
Revenue Code of 1986 to have section
303(c)(2)(D)(i) of such Act and section 
430(c)(2)(D)(iii) of such Code apply with 
respect to the shortfall amortization base 
for the first plan year beginning after De-
cember 31, 2009, and 
‘‘(iii) no event had occurred under 
paragraph (6) or (7) of section 303(c) of 
such Act or paragraph (6) or (7) of section 
430(c) of such Code that, as of the first 
day of the first plan year beginning after 
December 31, 2013, would have modified 
the shortfall amortization base or the 
shortfall amortization installments with re-
spect to the first plan year beginning after 
December 31, 2009. 
‘‘(F) For purposes of this paragraph, the 
12-year amortization base is an amount, deter-
mined for the first plan year beginning after 
December 31, 2013, equal to the unamortized 
principal amount of the shortfall amortization 
base (as defined in section 303(c)(3) of the Em-
ployee Retirement Income Security Act of 1974 
and section 430(c)(3) of the Internal Revenue 
Code of 1986) that would have applied to the
plan for the first plan beginning after Decem-
ber 31, 2010, if— 
‘‘(i) the plan had never been an eligi-
ble charity plan, 
‘‘(ii) the plan sponsor had made the 
election 
described 
in 
section 
303(c)(2)(D)(i) of the Employee Retire-
ment Income Security Act of 1974 and in 
section 430(c)(2)(D)(i) of the Internal 
Revenue Code of 1986 to have section 
303(c)(2)(D)(i) of such Act and section 
430(c)(2)(D)(iii) of such Code apply with 
respect to the shortfall amortization base 
for the first plan year beginning after De-
cember 31, 2010, and 
‘‘(iii) no event had occurred under 
paragraph (6) or (7) of section 303(c) of 
such Act or paragraph (6) or (7) of section 
430(c) of such Code that, as of the first 
day of the first plan year beginning after 
December 31, 2013, would have modified 
the shortfall amortization base or the 
shortfall amortization installments with re-
spect to the first plan year beginning after 
December 31, 2010.
‘‘(G) For purposes of this paragraph, the 
7-year shortfall amortization base is an amount, 
determined for the first plan year beginning 
after December 31, 2013, equal to— 
‘‘(i) the shortfall amortization base for 
the first plan year beginning after Decem-
ber 31, 2013, without regard to this para-
graph, minus 
‘‘(ii) the sum of the 11-year shortfall 
amortization base and the 12-year shortfall 
amortization base. 
‘‘(4) RETROACTIVE ELECTION.—Not later than 
December 31, 2014, a plan sponsor may make a 
one-time, irrevocable, retroactive election to not be 
treated as an eligible charity plan. Such election 
shall be effective for plan years beginning after De-
cember 31, 2007, and shall be made by providing 
reasonable notice to the Secretary of the Treasury.’’. 
(c) DEEMED ELECTION.—For purposes of the Inter-
nal Revenue Code of 1986, sections 4(b)(2) and 
4021(b)(3) of the Employee Retirement Income Security 
Act of 1974, and all other purposes, a plan shall be 
deemed to have made an irrevocable election under section 
410(d) of the Internal Revenue Code of 1986 if—
(1) the plan was established before January 1, 
2014; 
(2) the plan falls within the definition of a 
CSEC plan; 
(3) the plan sponsor does not make an election 
under section 210(f)(3)(A) of the Employee Retire-
ment Income Security Act of 1974 and section 
414(y)(3)(A) of the Internal Revenue Code of 1986, 
as added by this Act; and 
(4) the plan, plan sponsor, administrator, or fi-
duciary remits one or more premium payments for 
the plan to the Pension Benefit Guaranty Corpora-
tion for a plan year beginning after December 31, 
2013. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply as of the date of enactment of this 
Act. 
SEC. 104. TRANSPARENCY. 
(a) NOTICE TO PARTICIPANTS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
101(f) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1021(f)) is amended by add-
ing at the end the following new subparagraph:
‘‘(E) EFFECT OF CSEC PLAN RULES ON 
PLAN FUNDING.—In the case of a CSEC plan, 
each notice under paragraph (1) shall include— 
‘‘(i) a statement that different rules 
apply to CSEC plans than apply to single- 
employer plans, 
‘‘(ii) for the first 2 plan years begin-
ning after December 31, 2013, a statement 
that, as a result of changes in the law 
made by the Cooperative and Small Em-
ployer Charity Pension Flexibility Act, the 
contributions to the plan may have 
changed, and 
‘‘(iii) in the case of a CSEC plan that 
is in funding restoration status for the 
plan year, a statement that the plan is in 
funding restoration status for such plan 
year. 
A copy of the statement required under clause 
(iii) shall be provided to the Secretary, the Sec-
retary of the Treasury, and the Director of the 
Pension Benefit Guaranty Corporation.’’. 
(2) MODEL NOTICE.—The Secretary of Labor 
may modify the model notice required to be pub-
lished under section 501(c) of the Pension Protec-
tion Act of 2006 to include the information de-
scribed in section 101(f)(2)(E) of the Employee Re-
tirement Income Security Act of 1974, as added by 
this subsection. 
(b) NOTICE OF FAILURE TO MEET MINIMUM FUND-
ING STANDARDS.— 
(1) PENDING WAIVERS.—Paragraph (2) of sec-
tion 101(d) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1021(d)) is amended 
by striking ‘‘303’’ and inserting ‘‘303 or 306’’. 
(2) DEFINITIONS.—Paragraph (3) of section 
101(d) of the Employee Retirement Income Security 
Act of 1974 (21 U.S.C. 1021(d)) is amended by 
striking ‘‘303(j)’’ and inserting ‘‘303(j) or 306(f), 
whichever is applicable’’. 
(c) ADDITIONAL REPORTING REQUIREMENTS.—Sec-
tion 103 of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1023) is amended by adding at the 
end the following new subsection: 
‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO 
MULTIPLE EMPLOYER PLANS.—With respect to any mul-
tiple employer plan, an annual report under this section 
for a plan year shall include a list of participating employ-
ers and a good faith estimate of the percentage of total
contributions made by such participating employers dur-
ing the plan year.’’. 
SEC. 105. SPONSOR EDUCATION AND ASSISTANCE. 
(a) DEFINITION.—In this section, the term ‘‘CSEC 
plan’’ has the meaning given that term in subsection (f)(1) 
of section 210 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1060(f)(1)) (as added by this 
Act). 
(b) EDUCATION.—The Participant and Plan Sponsor 
Advocate established under section 4004 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1304) 
shall make itself available to assist CSEC plan sponsors 
and participants as part of the duties it performs under 
the general supervision of the Board of Directors under 
section 4004(b) of such Act (29 U.S.C. 1304(b)). 
TITLE II—AMENDMENTS TO IN-
TERNAL REVENUE CODE OF 
1986 
SEC. 201. DEFINITION OF COOPERATIVE AND SMALL EM-
PLOYER CHARITY PENSION PLANS. 
Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(y) COOPERATIVE AND SMALL EMPLOYER CHARITY 
PENSION PLANS.—
‘‘(B) may be offset against amounts re-
quired to be amortized under the other such 
paragraph, with the resulting amount to be am-
ortized over a period determined on the basis of 
the remaining amortization periods for all items 
entering into whichever of the two amounts 
being offset is the greater. 
‘‘(5) INTEREST.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the funding standard ac-
count (and items therein) shall be charged or 
credited (as determined under regulations pre-
scribed by the Secretary) with interest at the 
appropriate rate consistent with the rate or 
rates of interest used under the plan to deter-
mine costs. 
‘‘(B) EXCEPTION.—The interest rate used 
for purposes of computing the amortization 
charge described in subsection (b)(2)(C) or for 
purposes of any arrangement under subsection 
(d) for any plan year shall be the greater of— 
‘‘(i) 150 percent of the Federal mid- 
term rate (as in effect under section 1274 
for the 1st month of such plan year), or
‘‘(ii) the rate of interest determined 
under subparagraph (A). 
‘‘(6) AMORTIZATION SCHEDULES IN EFFECT.— 
Amortization schedules for amounts described in 
paragraphs (2) and (3) that are in effect as of the 
last day of the last plan year beginning before Janu-
ary 1, 2014, by reason of section 104 of the Pension 
Protection Act of 2006 shall remain in effect pursu-
ant to their terms and this section, except that such 
amounts shall not be amortized again under this sec-
tion. 
‘‘(c) SPECIAL RULES.— 
‘‘(1) DETERMINATIONS
TO
BE
MADE
UNDER 
FUNDING METHOD.—For purposes of this section, 
normal costs, accrued liability, past service liabilities, 
and experience gains and losses shall be determined 
under the funding method used to determine costs 
under the plan. 
‘‘(2) VALUATION OF ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the value of the plan’s assets shall be 
determined on the basis of any reasonable actu-
arial method of valuation which takes into ac-
count fair market value and which is permitted 
under regulations prescribed by the Secretary.