945 
‘‘(4) the value of the assets transferred in the 
case of a transfer reasonably reflects the value of the 
amounts contributed with respect to the participants 
whose benefits are being transferred, adjusted for al-
locable distributions, investment gains and losses, 
and administrative expenses. 
‘‘(b) LEGACY PLAN.— 
‘‘(1) IN GENERAL.—After a merger or transfer 
involving a composite plan, the legacy plan with re-
spect to an employer that is obligated to contribute 
to the resulting composite plan is the legacy plan 
that applied to that employer immediately before the 
merger or transfer. 
‘‘(2) MULTIPLE
LEGACY
PLANS.—If an em-
ployer is obligated to contribute to more than one 
legacy plan with respect to employees eligible to ac-
crue benefits under more than one composite plan 
and there is a merger or transfer of such legacy 
plans, the transition contribution rate applicable to 
the legacy plan resulting from the merger or trans-
fer with respect to that employer shall be determined 
in accordance with the provisions of section 
440A(d)(2)(B).’’. 
(2) CLERICAL AMENDMENT.—The table of sub-
parts for part III of subchapter D of chapter 1 of 
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the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘SUBPART C. COMPOSITE PLANS AND LEGACY PLANS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after the 
date of the enactment of this Act. 
SEC. 103. APPLICATION OF CERTAIN REQUIREMENTS TO 
COMPOSITE PLANS. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) TREATMENT FOR PURPOSES OF FUNDING 
NOTICES.—Section 101(f) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1021(f)) is amended— 
(A) in paragraph (1) by striking ‘‘title IV 
applies’’ and inserting ‘‘title IV applies or which 
is a composite plan’’; and 
(B) by adding at the end the following: 
‘‘(5) APPLICATION TO COMPOSITE PLANS.—The 
provisions of this subsection shall apply to a com-
posite plan only to the extent prescribed by the Sec-
retary in regulations that take into account the dif-
ferences between a composite plan and a defined 
benefit plan that is a multiemployer plan.’’. 
(2) TREATMENT
FOR
PURPOSES
OF
ANNUAL 
REPORT.—Section 103 of the Employee Retirement 
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Income Security Act of 1974 (29 U.S.C. 1023) is 
amended— 
(A) in subsection (d) by adding at the end 
the following sentence: ‘‘The provisions of this 
subsection shall apply to a composite plan only 
to the extent prescribed by the Secretary in reg-
ulations that take into account the differences 
between a composite plan and a defined benefit 
plan that is a multiemployer plan.’’; 
(B) in subsection (f) by adding at the end 
the following: 
‘‘(3) ADDITIONAL
INFORMATION
FOR
COM-
POSITE
PLANS.—With respect to any composite 
plan— 
‘‘(A) the provisions of paragraph (1)(A) 
shall apply by substituting ‘current funded ratio 
and projected funded ratio (as such terms are 
defined in section 802(a)(2))’ for ‘funded per-
centage’ each place it appears; and 
‘‘(B) the provisions of paragraph (2) shall 
apply only to the extent prescribed by the Sec-
retary in regulations that take into account the 
differences between a composite plan and a de-
fined benefit plan that is a multiemployer 
plan.’’; and 
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(C) by adding at the end the following: 
‘‘(h) COMPOSITE PLANS.—A multiemployer plan that 
incorporates the features of a composite plan as provided 
in section 801(b) shall be treated as a single plan for pur-
poses of the report required by this section, except that 
separate financial statements and actuarial statements 
shall be provided under paragraphs (3) and (4) of sub-
section (a) for the defined benefit plan component and for 
the composite plan component of the multiemployer 
plan.’’. 
(3) TREATMENT FOR PURPOSES OF PENSION 
BENEFIT STATEMENTS.—Section 105(a) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1025(a)) is amended by adding at the end 
the following: 
‘‘(4) COMPOSITE PLANS.—For purposes of this 
subsection, a composite plan shall be treated as a 
defined benefit plan to the extent prescribed by the 
Secretary in regulations that take into account the 
differences between a composite plan and a defined 
benefit plan that is a multiemployer plan.’’. 
(b) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.—Section 6058 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (f) 
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as subsection (g) and by inserting after subsection (e) the 
following: 
‘‘(f) COMPOSITE PLANS.—A multiemployer plan that 
incorporates the features of a composite plan as provided 
in section 437(b) shall be treated as a single plan for pur-
poses of the return required by this section, except that 
separate financial statements shall be provided for the de-
fined benefit plan component and for the composite plan 
component of the multiemployer plan.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after the 
date of the enactment of this Act. 
SEC. 104. TREATMENT OF COMPOSITE PLANS UNDER TITLE 
IV. 
(a) DEFINITION.—Section 4001(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1301(a)) is amended by striking the period at the end of 
paragraph (21) and inserting a semicolon and by adding 
at the end the following: 
‘‘(22) COMPOSITE PLAN.—The term ‘composite 
plan’ has the meaning set forth in section 801.’’. 
(b) COMPOSITE PLANS DISREGARDED FOR CALCU-
LATING PREMIUMS.—Section 4006(a) of such Act (29 
U.S.C. 1306(a)) is amended by adding at the end the fol-
lowing: 
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‘‘(9) The composite plan component of a multi-
employer plan shall be disregarded in determining 
the premiums due under this section from the multi-
employer plan.’’. 
(c) COMPOSITE
PLANS
NOT
COVERED.—Section 
4021(b)(1) of such Act (29 U.S.C. 1321(b)(1)) is amend-
ed by striking ‘‘Act’’ and inserting ‘‘Act, or a composite 
plan, as defined in paragraph (43) of section 3 of this 
Act’’. 
(d) NO WITHDRAWAL LIABILITY.—Section 4201 of 
such Act (29 U.S.C. 1381) is amended by adding at the 
end the following: 
‘‘(c) Contributions by an employer to the composite 
plan component of a multiemployer plan shall not be taken 
into account for any purpose under this title.’’. 
(e) NO
WITHDRAWAL
LIABILITY
FOR
CERTAIN 
PLANS.—Section 4201 of such Act (29 U.S.C. 1381) is 
further amended by adding at the end the following: 
‘‘(d) Contributions by an employer to a multiem-
ployer plan described in the except clause of section 3(35) 
of this Act pursuant to a collective bargaining agreement 
that specifically designates that such contributions shall 
be allocated to the separate defined contribution accounts 
of participants under the plan shall not be taken into ac-
count with respect to the defined benefit portion of the 
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951 
plan for any purpose under this title (including the deter-
mination of the employer’s highest contribution rate under 
section 4219), even if, under the terms of the plan, partici-
pants have the option to transfer assets in their separate 
defined contribution accounts to the defined benefit por-
tion of the plan in return for service credit under the de-
fined benefit portion, at rates established by the plan 
sponsor. 
‘‘(e) A legacy plan created under section 805 shall 
be deemed to have no unfunded vested benefits for pur-
poses of this part, for each plan year following a period 
of 5 consecutive plan years for which— 
‘‘(1) the plan was fully funded within the mean-
ing of section 805 for at least 3 of the plan years 
during that period, ending with a plan year for 
which the plan is fully funded; 
‘‘(2) the plan had no unfunded vested benefits 
for at least 3 of the plan years during that period, 
ending with a plan year for which the plan is fully 
funded; and 
‘‘(3) the plan is projected to be fully funded 
and to have no unfunded vested benefits for the fol-
lowing four plan years.’’. 
(f) NO WITHDRAWAL LIABILITY FOR EMPLOYERS 
CONTRIBUTING TO CERTAIN FULLY FUNDED LEGACY 
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952 
PLANS.—Section 4211 of such Act (29 U.S.C. 1382) is 
amended by adding at the end the following: 
‘‘(g) No amount of unfunded vested benefits shall be 
allocated to an employer that has an obligation to con-
tribute to a legacy plan described in subsection (e) of sec-
tion 4201 for each plan year for which such subsection 
applies.’’. 
(g) NO
OBLIGATION
TO
CONTRIBUTE.—Section 
4212 of such Act (29 U.S.C. 1392) is amended by adding 
at the end the following: 
‘‘(d) NO OBLIGATION TO CONTRIBUTE.—An em-
ployer shall not be treated as having an obligation to con-
tribute to a multiemployer defined benefit plan within the 
meaning of subsection (a) solely because— 
‘‘(1) in the case of a multiemployer plan that 
includes a composite plan component, the employer 
has an obligation to contribute to the composite plan 
component of the plan; 
‘‘(2) the employer has an obligation to con-
tribute to a composite plan that is maintained pur-
suant to one or more collective bargaining agree-
ments under which the multiemployer defined ben-
efit plan is or previously was maintained; or 
‘‘(3) the employer contributes or has contrib-
uted under section 805(d) to a legacy plan associ-
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953 
ated with a composite plan pursuant to a collective 
bargaining agreement but employees of that em-
ployer were not eligible to accrue benefits under the 
legacy plan with respect to service with that em-
ployer.’’. 
(h) NO INFERENCE.—Nothing in the amendment 
made by subsection (e) shall be construed to create an in-
ference with respect to the treatment under title IV of the 
Employee Retirement Income Security Act of 1974, as in 
effect before such amendment, of contributions by an em-
ployer to a multiemployer plan described in the except 
clause of section 3(35) of such Act that are made before 
the effective date of subsection (e) specified in subsection 
(h)(2). 
(i) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in sub-
paragraph (2), the amendments made by this section 
shall apply to plan years beginning after the date of 
the enactment of this Act. 
(2) SPECIAL RULE FOR SECTION 414(k) MULTI-
EMPLOYER PLANS.—The amendment made by sub-
section (e) shall apply only to required contributions 
payable for plan years beginning after the date of 
the enactment of this Act. 
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954 
SEC. 105. CONFORMING CHANGES. 
(a) DEFINITIONS.—Section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1002) 
is amended— 
(1) in paragraph (35), by inserting ‘‘or a com-
posite plan’’ after ‘‘other than an individual account 
plan’’; and 
(2) by adding at the end the following: 
‘‘(43) The term ‘composite plan’ has the mean-
ing given the term in section 801(a).’’. 
(b) SPECIAL FUNDING RULE FOR CERTAIN LEGACY 
PLANS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 304(b) of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1084(b)) is amended by adding at 
the end the following: 
‘‘(9) SPECIAL
FUNDING
RULE
FOR
CERTAIN 
LEGACY PLANS.—In the case of a multiemployer de-
fined benefit plan that has adopted an amendment 
under section 801(b), in accordance with which no 
further benefits shall accrue under the multiem-
ployer defined benefit plan, the plan sponsor may 
combine the outstanding balance of all charge and 
credit bases and amortize that combined base in 
level annual installments (until fully amortized) over 
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955 
a period of 25 plan years beginning with the plan 
year following the date all benefit accruals ceased.’’. 
(2) AMENDMENT TO INTERNAL REVENUE CODE 
OF 1986.—Section 431(b) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following: 
‘‘(9) SPECIAL
FUNDING
RULE
FOR
CERTAIN 
LEGACY PLANS.—In the case of a multiemployer de-
fined benefit plan that has adopted an amendment 
under section 437(b), in accordance with which no 
further benefits shall accrue under the multiem-
ployer defined benefit plan, the plan sponsor may 
combine the outstanding balance of all charge and 
credit bases and amortize that combined base in 
level annual installments (until fully amortized) over 
a period of 25 plan years beginning with the plan 
year following the date on which all benefit accruals 
ceased.’’. 
(c) BENEFITS AFTER MERGER, CONSOLIDATION, OR 
TRANSFER OF ASSETS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 208 of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1058) is amended— 
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956 
(A) by striking so much of the first sen-
tence as precedes ‘‘may not merge’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a pension plan may not merge, and’’; and 
(B) by striking the second sentence and 
adding at the end the following: 
‘‘(2) SPECIAL REQUIREMENTS FOR MULTIEM-
PLOYER PLANS.—Paragraph (1) shall not apply to 
any transaction to the extent that participants either 
before or after the transaction are covered under a 
multiemployer plan to which title IV of this Act ap-
plies or a composite plan.’’. 
(2) AMENDMENTS
TO
INTERNAL
REVENUE 
CODE OF 1986.— 
(A) QUALIFICATION REQUIREMENT.—Sec-
tion 401(a)(12) of the Internal Revenue Code 
of 1986 is amended— 
(i) by striking ‘‘(12) A trust’’ and in-
serting the following: 
‘‘(12) BENEFITS AFTER MERGER, CONSOLIDA-
TION, OR TRANSFER OF ASSETS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a trust’’; 
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957 
(ii) by striking the second sentence; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) SPECIAL REQUIREMENTS FOR MULTI-
EMPLOYER
PLANS.—Subparagraph (A) shall 
not apply to any multiemployer plan with re-
spect to any transaction to the extent that par-
ticipants either before or after the transaction 
are covered under a multiemployer plan to 
which title IV of the Employee Retirement In-
come Security Act of 1974 applies or a com-
posite plan.’’. 
(B) ADDITIONAL QUALIFICATION REQUIRE-
MENT.—Paragraph (1) of section 414(l) of such 
Code is amended— 
(i) by striking ‘‘(1) IN GENERAL’’ and 
all that follows through ‘‘shall not con-
stitute’’ and inserting the following: 
‘‘(1) BENEFIT
PROTECTIONS: MERGER, CON-
SOLIDATION, TRANSFER.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a trust which forms a part 
of a plan shall not constitute’’; and 
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958 
(ii) by striking the second sentence; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) SPECIAL REQUIREMENTS FOR MULTI-
EMPLOYER PLANS.—Subparagraph (A) does not 
apply to any multiemployer plan with respect to 
any transaction to the extent that participants 
either before or after the transaction are cov-
ered under a multiemployer plan to which title 
IV of the Employee Retirement Income Secu-
rity Act of 1974 applies or a composite plan.’’. 
(d) REQUIREMENTS FOR STATUS AS A QUALIFIED 
PLAN.— 
(1) REQUIREMENT THAT ACTUARIAL ASSUMP-
TIONS BE SPECIFIED.—Section 401(a)(25) of the In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘(in the case of a composite plan, benefits objec-
tively calculated pursuant to a formula)’’ after ‘‘defi-
nitely determinable benefits’’. 
(2) MISSING
PARTICIPANTS
IN
TERMINATING 
COMPOSITE PLAN.—Section 401(a)(34) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘, 
a trust’’ and inserting ‘‘or a composite plan, a 
trust’’. 
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959 
(e) DEDUCTION FOR CONTRIBUTIONS TO A QUALI-
FIED PLAN.—Section 404(a)(1) of the Internal Revenue 
Code of 1986 is amended by redesignating subparagraph 
(E) as subparagraph (F) and by inserting after subpara-
graph (D) the following: 
‘‘(E) COMPOSITE PLANS.— 
‘‘(i) IN GENERAL.—In the case of a 
composite plan, subparagraph (D) shall 
not apply and the maximum amount de-
ductible for a plan year shall be the excess 
(if any) of— 
‘‘(I) 160 percent of the greater 
of— 
‘‘(aa) the current liability of 
the plan determined in accord-
ance with the principles of sec-
tion 431(c)(6)(D), or 
‘‘(bb) the present value of 
plan liabilities as determined 
under section 438, over 
‘‘(II) the fair market value of the 
plan’s assets, projected to the end of 
the plan year. 
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960 
‘‘(ii) SPECIAL
RULES
FOR
PREDE-
CESSOR
MULTIEMPLOYER
PLAN
TO
COM-
POSITE PLAN.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), if an em-
ployer contributes to a composite plan 
with respect to its employees, con-
tributions by that employer to a mul-
tiemployer defined benefit plan with 
respect to some or all of the same 
group of employees shall be deductible 
under sections 162 and this section, 
subject to the limits in subparagraph 
(D). 
‘‘(II) 
TRANSITION
CONTRIBU-
TION.—The full amount of a contribu-
tion to satisfy the transition contribu-
tion requirement (as defined in sec-
tion 440A(d)) and allocated to the 
legacy defined benefit plan for the 
plan year shall be deductible for the 
employer’s taxable year ending with or 
within the plan year.’’. 
(f) MINIMUM VESTING STANDARDS.— 
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961 
(1) YEARS
OF
SERVICE
UNDER
COMPOSITE 
PLANS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 203 of the Em-
ployee Retirement Income Security Act of 1974 
(29 U.S.C. 1053) is amended by inserting after 
subsection (f) the following: 
‘‘(g) SPECIAL RULES FOR COMPUTING YEARS OF 
SERVICE UNDER COMPOSITE PLANS.— 
‘‘(1) IN GENERAL.—In determining a qualified 
employee’s years of service under a composite plan 
for purposes of this section, the employee’s years of 
service under a legacy plan shall be treated as years 
of service earned under the composite plan. For pur-
poses of such determination, a composite plan shall 
not be treated as a defined benefit plan pursuant to 
section 801(d). 
‘‘(2) QUALIFIED EMPLOYEE.—For purposes of 
this subsection, an employee is a qualified employee 
if the employee first completes an hour of service 
under the composite plan (determined without re-
gard to the provisions of this subsection) within the 
12-month period immediately preceding or the 24- 
month period immediately following the date the em-
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962 
ployee ceased to accrue benefits under the legacy 
plan. 
‘‘(3) CERTIFICATION OF YEARS OF SERVICE.— 
For purposes of paragraph (1), the plan sponsor of 
the composite plan shall rely on a written certifi-
cation by the plan sponsor of the legacy plan of the 
years of service the qualified employee completed 
under the defined benefit plan as of the date the em-
ployee satisfies the requirements of paragraph (2), 
disregarding any years of service that had been for-
feited under the rules of the defined benefit plan be-
fore that date. 
‘‘(h) SPECIAL RULES FOR COMPUTING YEARS OF 
SERVICE UNDER LEGACY PLANS.— 
‘‘(1) IN GENERAL.—In determining a qualified 
employee’s years of service under a legacy plan for 
purposes of this section, and in addition to any serv-
ice under applicable regulations, the employee’s 
years of service under a composite plan shall be 
treated as years of service earned under the legacy 
plan. For purposes of such determination, a com-
posite plan shall not be treated as a defined benefit 
plan pursuant to section 801(d). 
‘‘(2) QUALIFIED EMPLOYEE.—For purposes of 
this subsection, an employee is a qualified employee 
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963 
if the employee first completes an hour of service 
under the composite plan (determined without re-
gard to the provisions of this subsection) within the 
12-month period immediately preceding or the 24- 
month period immediately following the date the em-
ployee ceased to accrue benefits under the legacy 
plan. 
‘‘(3) CERTIFICATION OF YEARS OF SERVICE.— 
For purposes of paragraph (1), the plan sponsor of 
the legacy plan shall rely on a written certification 
by the plan sponsor of the composite plan of the 
years of service the qualified employee completed 
under the composite plan after the employee satisfies 
the requirements of paragraph (2), disregarding any 
years of service that has been forfeited under the 
rules of the composite plan.’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing: 
‘‘(14) SPECIAL
RULES
FOR
DETERMINING 
YEARS OF SERVICE UNDER COMPOSITE PLANS.— 
‘‘(A) IN
GENERAL.—In determining a 
qualified employee’s years of service under a 
composite plan for purposes of this subsection, 
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964 
the employee’s years of service under a legacy 
plan shall be treated as years of service earned 
under the composite plan. For purposes of such 
determination, a composite plan shall not be 
treated as a defined benefit plan pursuant to 
section 437(d). 
‘‘(B) QUALIFIED
EMPLOYEE.—For pur-
poses of this paragraph, an employee is a quali-
fied employee if the employee first completes an 
hour of service under the composite plan (deter-
mined without regard to the provisions of this 
paragraph) within the 12-month period imme-
diately preceding or the 24-month period imme-
diately following the date the employee ceased 
to accrue benefits under the legacy plan. 
‘‘(C) CERTIFICATION OF YEARS OF SERV-
ICE.—For purposes of subparagraph (A), the 
plan sponsor of the composite plan shall rely on 
a written certification by the plan sponsor of 
the legacy plan of the years of service the quali-
fied employee completed under the legacy plan 
as of the date the employee satisfies the re-
quirements of subparagraph (B), disregarding 
any years of service that had been forfeited 
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965 
under the rules of the defined benefit plan be-
fore that date. 
‘‘(15) SPECIAL RULES FOR COMPUTING YEARS 
OF SERVICE UNDER LEGACY PLANS.— 
‘‘(A) IN
GENERAL.—In determining a 
qualified employee’s years of service under a 
legacy plan for purposes of this section, and in 
addition to any service under applicable regula-
tions, the employee’s years of service under a 
composite plan shall be treated as years of serv-
ice earned under the legacy plan. For purposes 
of such determination, a composite plan shall 
not be treated as a defined benefit plan pursu-
ant to section 437(d). 
‘‘(B) QUALIFIED
EMPLOYEE.—For pur-
poses of this paragraph, an employee is a quali-
fied employee if the employee first completes an 
hour of service under the composite plan (deter-
mined without regard to the provisions of this 
paragraph) within the 12-month period imme-
diately preceding or the 24-month period imme-
diately following the date the employee ceased 
to accrue benefits under the legacy plan. 
‘‘(C) CERTIFICATION OF YEARS OF SERV-
ICE.—For purposes of subparagraph (A), the 
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plan sponsor of the legacy plan shall rely on a 
written certification by the plan sponsor of the 
composite plan of the years of service the quali-
fied employee completed under the composite 
plan after the employee satisfies the require-
ments of subparagraph (B), disregarding any 
years of service that has been forfeited under 
the rules of the composite plan.’’. 
(2) REDUCTION OF BENEFITS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 203(a)(3)(E)(ii) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(a)(3)(E)(ii)) is 
amended— 
(i) in subclause (I) by striking 
‘‘4244A’’ and inserting ‘‘305(e), 803,’’; 
and 
(ii) in subclause (II) by striking 
‘‘4245’’ and inserting ‘‘305(e), 4245,’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(a)(3)(F) of the Internal Revenue 
Code of 1986 is amended— 
(i) in clause (i) by striking ‘‘section 
418D or under section 4281 of the Em-
ployee Retirement Income Security Act of 
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967 
1974’’ and inserting ‘‘section 432(e) or 
439 or under section 4281 of the Em-
ployee Retirement Income Security Act of 
1974’’; and 
(ii) in clause (ii) by inserting ‘‘or 
432(e)’’ after ‘‘section 418E’’. 
(3) ACCRUED BENEFIT REQUIREMENTS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(B)(i) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1054(b)(1)(B)(i)) is 
amended by inserting ‘‘, including an amend-
ment reducing or suspending benefits under 
section 305(e), 803, 4245 or 4281,’’ after ‘‘any 
amendment to the plan’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(B)(i) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘, includ-
ing an amendment reducing or suspending ben-
efits under section 418E, 432(e) or 439, or 
under section 4281 of the Employee Retirement 
Income Security Act of 1974,’’ after ‘‘any 
amendment to the plan’’. 
(4) ADDITIONAL ACCRUED BENEFIT REQUIRE-
MENTS.— 
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968 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(H)(v) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(b)(1)(H)(v)) is 
amended by inserting before the period at the 
end the following: ‘‘, or benefits are reduced or 
suspended under section 305(e), 803, 4245, or 
4281’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(H)(iv) of the Internal Rev-
enue Code of 1986 is amended— 
(i) in the heading by striking ‘‘BEN-
EFIT’’ and inserting ‘‘BENEFIT AND THE 
SUSPENSION AND REDUCTION OF CERTAIN 
BENEFITS’’; and 
(ii) in the text by inserting before the 
period at the end the following: ‘‘, or bene-
fits are reduced or suspended under sec-
tion 418E, 432(e), or 439, or under sec-
tion 4281 of the Employee Retirement In-
come Security Act of 1974’’. 
(5) ACCRUED BENEFIT NOT TO BE DECREASED 
BY AMENDMENT.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(g)(1) of the 
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Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1053(g)(1)) is amended by in-
serting after ‘‘302(d)(2)’’ the following: ‘‘, 
305(e), 803, 4245,’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(d)(6)(A) of the Internal Revenue 
Code of 1986 is amended by inserting after 
‘‘412(d)(2),’’ the following: ‘‘418E, 432(e), or 
439,’’. 
(g) CERTAIN FUNDING RULES NOT APPLICABLE.— 
(1) EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.—Section 305 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1085) 
is amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 302, 304, and 305 
shall not apply to an employer that has an obligation to 
contribute to a plan that is a legacy plan within the mean-
ing of section 805(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 801 that is associated with that legacy plan.’’. 
(2) INTERNAL REVENUE CODE OF 1986.—Sec-
tion 432 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 412, 431, and 432 
shall not apply to an employer that has an obligation to 
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970 
contribute to a plan that is a legacy plan within the mean-
ing of section 440A(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 437 that is associated with that legacy plan.’’. 
(h) TERMINATION OF COMPOSITE PLAN.—Section 
403(d) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1103(d) is amended— 
(1) in paragraph (1), by striking ‘‘regulations 
of the Secretary.’’ and inserting ‘‘regulations of the 
Secretary, or as provided in paragraph (3).’’; and 
(2) by adding at the end the following: 
‘‘(3) Section 4044(a) of this Act shall be ap-
plied in the case of the termination of a composite 
plan by— 
‘‘(A) limiting the benefits subject to para-
graph (3) thereof to benefits as defined in sec-
tion 802(b)(3)(B); and 
‘‘(B) including in the benefits subject to 
paragraph (4) all other benefits (if any) of indi-
viduals under the plan that would be guaran-
teed under section 4022A if the plan were sub-
ject to title IV.’’. 
(i) GOOD FAITH COMPLIANCE PRIOR
TO GUID-
ANCE.—Where the implementation of any provision of law 
added or amended by this division is subject to issuance 
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971 
of regulations by the Secretary of Labor, the Secretary 
of the Treasury, or the Pension Benefit Guaranty Cor-
poration, a multiemployer plan shall not be treated as fail-
ing to meet the requirements of any such provision prior 
to the issuance of final regulations or other guidance to 
carry out such provision if such plan is operated in accord-
ance with a reasonable, good faith interpretation of such 
provision. 
SEC. 106. EFFECTIVE DATE. 
Unless otherwise specified, the amendments made by 
this division shall apply to plan years beginning after the 
date of the enactment of this Act. 
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DIVISION I—CONTINUED ASSIST-
ANCE 
TO 
UNEMPLOYED 
WORKERS 
TITLE I—EXTENSIONS OF CARES 
ACT UNEMPLOYMENT BENE-
FITS FOR WORKERS 
SEC. 101. EXTENSION OF FEDERAL PANDEMIC UNEMPLOY-
MENT COMPENSATION. 
(a) IN GENERAL.—Section 2104(e) of the CARES 
Act (Public Law 116–136) is amended to read as follows: 
‘‘(e) APPLICABILITY.— 
‘‘(1) IN GENERAL.—An agreement entered into 
under this section shall apply— 
‘‘(A) to weeks of unemployment beginning 
after the date on which such agreement is en-
tered into and ending on or before July 31, 
2020; and 
‘‘(B) to weeks of unemployment beginning 
after September 5, 2020 (or, if later, the date 
on which such agreement is entered into) and 
ending on or before January 31, 2021. 
‘‘(2) TRANSITION RULE FOR INDIVIDUALS RE-
MAINING ENTITLED TO REGULAR COMPENSATION AS 
OF JANUARY 31, 2021.—In the case of any individual 
who, as of the date specified in paragraph (1)(B), 
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has not yet exhausted all rights to regular com-
pensation under the State law of a State with re-
spect to a benefit year that began before such date, 
Federal Pandemic Unemployment Compensation 
shall continue to be payable to such individual for 
any week beginning on or after such date for which 
the individual is otherwise eligible for regular com-
pensation with respect to such benefit year. 
‘‘(3) 
TERMINATION.—Notwithstanding 
any 
other provision of this subsection, no Federal Pan-
demic Unemployment Compensation shall be payable 
for any week beginning after March 31, 2021.’’. 
(b) LIMITATION ON APPLICATION OF TRANSITION 
RULE.—Section 2104(g) of such Act is amended by in-
serting ‘‘(except for subsection (e)(2))’’ after ‘‘the pre-
ceding provisions of this section’’. 
(c) DISREGARD OF FEDERAL PANDEMIC UNEMPLOY-
MENT COMPENSATION FOR CERTAIN PURPOSES.—Section 
2104(h) of such Act is amended to read as follows: 
‘‘(h) DISREGARD OF FEDERAL PANDEMIC UNEM-
PLOYMENT COMPENSATION FOR PURPOSES OF ALL FED-
ERAL AND FEDERALLY ASSISTED PROGRAMS.—A Federal 
Pandemic Unemployment Compensation payment shall 
not be regarded as income and shall not be regarded as 
a resource for the month of receipt and the following 9 
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months, for purposes of determining the eligibility of the 
recipient (or the recipient’s spouse or family) for benefits 
or assistance, or the amount or extent of benefits or assist-
ance, under any Federal program or under any State or 
local program financed in whole or in part with Federal 
funds.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 102. EXTENSION OF PANDEMIC UNEMPLOYMENT AS-
SISTANCE. 
Section 2102(c) of the CARES Act (15 U.S.C. 
9021(c)) is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘January 31, 2021’’. 
SEC. 103. EXTENSION OF PANDEMIC EMERGENCY UNEM-
PLOYMENT COMPENSATION. 
Section 2107(g)(2) of the CARES Act (15 U.S.C. 
9025(g)(2)) is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘January 31, 2021’’. 
SEC. 104. EXTENSION OF TEMPORARY FINANCING OF 
SHORT-TIME COMPENSATION PAYMENTS IN 
STATES WITH PROGRAMS IN LAW. 
Section 2108(b)(2) of the CARES Act (15 U.S.C. 
9026(b)(2)) is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘January 31, 2021’’. 
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975 
SEC. 105. EXTENSION OF TEMPORARY FINANCING OF 
SHORT-TIME COMPENSATION AGREEMENTS. 
Section 2109(d)(2) of the CARES Act (15 U.S.C. 
9027(d)(2)) is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘January 31, 2021’’. 
SEC. 106. EXTENSION OF FULL FEDERAL FUNDING OF THE 
FIRST WEEK OF COMPENSABLE REGULAR 
UNEMPLOYMENT FOR STATES WITH NO WAIT-
ING WEEK. 
Section 2105(e)(2) of the CARES Act (15 U.S.C. 
9024(e)(2)) is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘January 31, 2021’’. 
TITLE II—ADDITIONAL WEEKS 
OF BENEFIT ELIGIBILITY 
SEC. 201. ADDITIONAL WEEKS. 
Subtitle A of title II of division A of the CARES Act 
(15 U.S.C. 9021 et seq.) is amended by inserting after 
section 2107 the following: 
‘‘SEC. 2107A. PANDEMIC EMERGENCY UNEMPLOYMENT EX-
TENSION COMPENSATION. 
‘‘(a) FEDERAL-STATE AGREEMENTS.— 
‘‘(1) IN GENERAL.—Any State which desires to 
do so may enter into and participate in an agree-
ment under this section with the Secretary of Labor 
(in this section referred to as the ‘Secretary’). Any 
State which is a party to an agreement under this 
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section may, upon providing 30 days’ written notice 
to the Secretary, terminate such agreement. 
‘‘(2) PROVISIONS OF AGREEMENT.—Any agree-
ment under paragraph (1) shall provide that the 
State agency of the State will make payments (in 
this section referred to as ‘pandemic emergency un-
employment extension compensation’) to individuals 
who— 
‘‘(A) have exhausted all rights to regular 
compensation, extended compensation, pan-
demic unemployment assistance under section 
2102, and pandemic emergency unemployment 
compensation under section 2107; 
‘‘(B) have no rights to any benefit speci-
fied in subparagraph (A) or to compensation 
under any other Federal law or under the un-
employment compensation law of Canada; and 
‘‘(C) are able to work, available to work, 
and actively seeking work. 
‘‘(3) EXHAUSTION
OF
BENEFITS.—For pur-
poses of paragraph (2)(A), an individual shall be 
deemed to have exhausted such individual’s rights to 
benefits specified in subparagraph (A) when— 
‘‘(A) no payments of such benefits can be 
made because such individual has received all 
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such benefits available to such individual based 
on employment or wages during such individ-
ual’s base period; or 
‘‘(B) such individual’s rights to such bene-
fits have been terminated by reason of the expi-
ration of the benefit year with respect to which 
such rights existed. 
‘‘(4) WEEKLY
BENEFIT
AMOUNT, ETC.—For 
purposes of any agreement under this section— 
‘‘(A) the amount of pandemic emergency 
unemployment extension compensation which 
shall be payable to any individual for any week 
of total unemployment shall be equal to— 
‘‘(i) the amount of the base compensa-
tion (including any dependents’ allowances) 
payable to such individual during such in-
dividual’s benefit year under the State law 
for a week of total unemployment; and 
‘‘(ii) the amount of Federal Pandemic 
Unemployment Compensation under sec-
tion 2104; 
‘‘(B) the terms and conditions of the State 
law which apply to claims for regular compensa-
tion and to the payment thereof (including 
terms and conditions relating to availability for 
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978 
work, active search for work, and refusal to ac-
cept work) shall apply to claims for pandemic 
emergency unemployment extension compensa-
tion and the payment thereof, except where oth-
erwise inconsistent with the provisions of this 
section or with the regulations or operating in-
structions of the Secretary promulgated to 
carry out this section; 
‘‘(C) the maximum amount of pandemic 
emergency unemployment extension compensa-
tion payable to any individual for whom a pan-
demic emergency unemployment extension com-
pensation account is established under sub-
section (b) shall not exceed the amount estab-
lished in such account for such individual; and 
‘‘(D) the allowable methods of payment 
under section 2104(b)(2) shall apply to pay-
ments of amounts described in subparagraph 
(A)(ii). 
‘‘(5) NONREDUCTION RULE.— 
‘‘(A) IN GENERAL.—An agreement under 
this section shall not apply (or shall cease to 
apply) with respect to a State upon a deter-
mination by the Secretary that the method gov-
erning the computation of regular compensation 
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979 
under the State law of that State has been 
modified in a manner such that the number of 
weeks (the maximum benefit entitlement), or 
the average weekly benefit amount, of regular 
compensation which will be payable during the 
period of the agreement will be less than the 
number of weeks, or the average weekly benefit 
amount, of the average weekly benefit amount 
of regular compensation which would otherwise 
have been payable during such period under the 
State law, as in effect on January 1, 2020. 
‘‘(B) MAXIMUM BENEFIT ENTITLEMENT.— 
In subparagraph (A), the term ‘maximum ben-
efit entitlement’ means the amount of regular 
compensation payable to an individual with re-
spect to the individual’s benefit year. 
‘‘(6) ACTIVELY SEEKING WORK.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (2)(C), the term ‘actively seeking work’ 
means, with respect to any individual, that such 
individual— 
‘‘(i) is registered for employment serv-
ices in such a manner and to such extent 
as prescribed by the State agency; 
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980 
‘‘(ii) has engaged in an active search 
for employment that is appropriate in light 
of the employment available in the labor 
market, the individual’s skills and capabili-
ties, and includes a number of employer 
contacts that is consistent with the stand-
ards communicated to the individual by the 
State; 
‘‘(iii) has maintained a record of such 
work search, including employers con-
tacted, method of contact, and date con-
tacted; and 
‘‘(iv) when requested, has provided 
such work search record to the State agen-
cy. 
‘‘(B) FLEXIBILITY.—Notwithstanding the 
requirements under subparagraph (A) and 
paragraph (2)(C), a State shall provide flexi-
bility in meeting such requirements in case of 
individuals unable to search for work because of 
COVID–19, including because of illness, quar-
antine, or movement restriction. 
‘‘(b) PANDEMIC EMERGENCY UNEMPLOYMENT COM-
PENSATION ACCOUNT.— 
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981 
‘‘(1) IN GENERAL.—Any agreement under this 
section shall provide that the State will establish, for 
each eligible individual who files an application for 
pandemic emergency unemployment extension com-
pensation, a pandemic emergency unemployment ex-
tension compensation account with respect to such 
individual’s benefit year. 
‘‘(2) AMOUNT IN ACCOUNT.—The amount es-
tablished in an account under subsection (a) shall be 
equal to 13 times the individual’s average weekly 
benefit amount, which includes the amount of Fed-
eral Pandemic Unemployment Compensation under 
section 2104, for the benefit year. 
‘‘(3) WEEKLY
BENEFIT
AMOUNT.—For pur-
poses of this subsection, an individual’s weekly ben-
efit amount for any week is the amount of base com-
pensation (including any dependents’ allowances) 
under the State law payable to such individual for 
such week for total unemployment plus the amount 
of Federal Pandemic Unemployment Compensation 
under section 2104. 
‘‘(c) PAYMENTS TO STATES HAVING AGREEMENTS 
FOR THE PAYMENT OF PANDEMIC EMERGENCY UNEM-
PLOYMENT EXTENSION COMPENSATION.— 
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982 
‘‘(1) IN GENERAL.—There shall be paid to each 
State that has entered into an agreement under this 
section an amount equal to 100 percent of the pan-
demic emergency unemployment extension com-
pensation paid to individuals by the State pursuant 
to such agreement. 
‘‘(2) TREATMENT
OF
REIMBURSABLE
COM-
PENSATION.—No payment shall be made to any 
State under this section in respect of any compensa-
tion to the extent the State is entitled to reimburse-
ment in respect of such compensation under the pro-
visions of any Federal law other than this section or 
chapter 85 of title 5, United States Code. A State 
shall not be entitled to any reimbursement under 
such chapter 85 in respect of any compensation to 
the extent the State is entitled to reimbursement 
under this section in respect of such compensation. 
‘‘(3) DETERMINATION OF AMOUNT.—Sums pay-
able to any State by reason of such State having an 
agreement under this section shall be payable, either 
in advance or by way of reimbursement (as may be 
determined by the Secretary), in such amounts as 
the Secretary estimates the State will be entitled to 
receive under this section for each calendar month, 
reduced or increased, as the case may be, by any 
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983 
amount by which the Secretary finds that the Sec-
retary’s estimates for any prior calendar month were 
greater or less than the amounts which should have 
been paid to the State. Such estimates may be made 
on the basis of such statistical, sampling, or other 
method as may be agreed upon by the Secretary and 
the State agency of the State involved. 
‘‘(d) FINANCING PROVISIONS.— 
‘‘(1) COMPENSATION.— 
‘‘(A) IN GENERAL.—Funds in the extended 
unemployment compensation account (as estab-
lished by section 905(a) of the Social Security 
Act (42 U.S.C. 1105(a)) of the Unemployment 
Trust Fund (as established by section 904(a) of 
such Act (42 U.S.C. 1104(a)) shall be used for 
the making of payments to States having agree-
ments entered into under this section. 
‘‘(B) TRANSFER
OF
FUNDS.—Notwith-
standing any other provision of law, the Sec-
retary of the Treasury shall transfer from the 
general fund of the Treasury (from funds not 
otherwise appropriated) to the extended unem-
ployment compensation account such sums as 
the Secretary of Labor estimates to be nec-
essary to make payments described in subpara-
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984 
graph (A). There are appropriated from the 
general fund of the Treasury, without fiscal 
year limitation, the sums referred to in the pre-
ceding sentence and such sums shall not be re-
quired to be repaid. 
‘‘(2) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—There are appro-
priated out of the employment security adminis-
tration account (as established by section 
901(a) of the Social Security Act (42 U.S.C. 
1101(a)) of the Unemployment Trust Fund, 
without fiscal year limitation, such funds as 
may be necessary for purposes of assisting 
States (as provided in title III of the Social Se-
curity Act (42 U.S.C. 501 et seq.)) in meeting 
the costs of administration of agreements under 
this section. 
‘‘(B) TRANSFER
OF
FUNDS.—Notwith-
standing any other provision of law, the Sec-
retary of the Treasury shall transfer from the 
general fund of the Treasury (from funds not 
otherwise appropriated) to the employment se-
curity administration account such sums as the 
Secretary of Labor estimates to be necessary to 
make payments described in subparagraph (A). 
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985 
There are appropriated from the general fund 
of the Treasury, without fiscal year limitation, 
the sums referred to in the preceding sentence 
and such sums shall not be required to be re-
paid. 
‘‘(3) CERTIFICATION.—The Secretary shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this subsection. The Sec-
retary of the Treasury, prior to audit or settlement 
by the Government Accountability Office, shall make 
payments to the State in accordance with such cer-
tification, by transfers from the extended unemploy-
ment compensation account (as so established) to 
the account of such State in the Unemployment 
Trust Fund (as so established). 
‘‘(e) FRAUD AND OVERPAYMENTS.— 
‘‘(1) IN GENERAL.—If an individual knowingly 
has made, or caused to be made by another, a false 
statement or representation of a material fact, or 
knowingly has failed, or caused another to fail, to 
disclose a material fact, and as a result of such false 
statement or representation or of such nondisclosure 
such individual has received an amount of pandemic 
emergency unemployment extension compensation 
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under this section to which such individual was not 
entitled, such individual— 
‘‘(A) shall be ineligible for further pan-
demic emergency unemployment extension com-
pensation under this section in accordance with 
the provisions of the applicable State unemploy-
ment compensation law relating to fraud in con-
nection with a claim for unemployment com-
pensation; and 
‘‘(B) shall be subject to prosecution under 
section 1001 of title 18, United States Code. 
‘‘(2) REPAYMENT.—In the case of individuals 
who have received amounts of pandemic emergency 
unemployment extension compensation under this 
section to which they were not entitled, the State 
shall require such individuals to repay the amounts 
of such pandemic emergency unemployment exten-
sion compensation to the State agency, except that 
the State agency may waive such repayment if it de-
termines that— 
‘‘(A) the payment of such pandemic emer-
gency unemployment extension compensation 
was without fault on the part of any such indi-
vidual; and 
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‘‘(B) such repayment would be contrary to 
equity and good conscience. 
‘‘(3) RECOVERY BY STATE AGENCY.— 
‘‘(A) IN
GENERAL.—The State agency 
shall recover the amount to be repaid, or any 
part thereof, by deductions from any pandemic 
emergency unemployment extension compensa-
tion payable to such individual under this sec-
tion or from any unemployment compensation 
payable to such individual under any State or 
Federal unemployment compensation law ad-
ministered by the State agency or under any 
other State or Federal law administered by the 
State agency which provides for the payment of 
any assistance or allowance with respect to any 
week of unemployment, during the 3-year pe-
riod after the date such individuals received the 
payment of the pandemic emergency unemploy-
ment extension compensation to which they 
were not entitled, in accordance with the same 
procedures as apply to the recovery of overpay-
ments of regular unemployment benefits paid 
by the State. 
‘‘(B) OPPORTUNITY
FOR
HEARING.—No 
repayment shall be required, and no deduction 
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shall be made, until a determination has been 
made, notice thereof and an opportunity for a 
fair hearing has been given to the individual, 
and the determination has become final. 
‘‘(4) REVIEW.—Any determination by a State 
agency under this section shall be subject to review 
in the same manner and to the same extent as deter-
minations under the State unemployment compensa-
tion law, and only in that manner and to that ex-
tent. 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) the terms ‘compensation’, ‘regular com-
pensation’, ‘extended compensation’, ‘benefit year’, 
‘base period’, ‘State’, ‘State agency’, ‘State law’, and 
‘week’ have the respective meanings given such 
terms under section 205 of the Federal-State Ex-
tended Unemployment Compensation Act of 1970 
(26 U.S.C. 3304 note); and 
‘‘(2) the term ‘base compensation’ means, as 
applicable— 
‘‘(A) regular compensation; or 
‘‘(B) pandemic unemployment assistance 
under section 2102. 
‘‘(g) APPLICABILITY.—An agreement entered into 
under this section shall apply to weeks of unemployment— 
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