851 
SEC. 306. MODIFICATION OF SPECIAL RULES FOR MINIMUM 
FUNDING 
STANDARDS 
FOR 
COMMUNITY 
NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Subsection (m) of section 430 of the Internal Rev-
enue Code of 1986, as added by the Setting Every Com-
munity Up for Retirement Enhancement Act of 2019, is 
amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE NEWSPAPER PLAN SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means 
the plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
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‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the con-
sent of the Secretary. 
‘‘(4) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
vided in clause (ii), the first, second, and 
third segment rates in effect for any 
month for purposes of this section shall be 
8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for pur-
poses of determining the funding target 
and normal cost of a plan for any plan 
year, the present value of any benefits ac-
crued or earned under the plan for a plan 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the United 
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States Treasury obligation yield curve for 
the day that is the valuation date of such 
plan for such plan year. 
‘‘(iii) UNITED STATES TREASURY OB-
LIGATION YIELD CURVE.—For purposes of 
this subsection, the term ‘United States 
Treasury obligation yield curve’ means, 
with respect to any day, a yield curve 
which shall be prescribed by the Secretary 
for such day on interest-bearing obligations 
of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) 
for all plan years preceding the first plan 
year to which the election under paragraph 
(1) applies (and all shortfall amortization 
installments determined with respect to 
such bases) shall be reduced to zero under 
rules similar to the rules of subsection 
(c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
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plan year to which the election under para-
graph (1) applies shall be the funding 
shortfall of such plan for such plan year 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 
30-YEAR
PERIOD.—Subpara-
graphs (A) and (B) of subsection (c)(2) 
shall be applied by substituting ‘30-plan- 
year’ for ‘7-plan-year’ each place it ap-
pears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION FROM AT-RISK TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means any plan to which this 
section applies maintained as of December 31, 
2018, by an employer which— 
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‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any 
time during the 11-year period ending on 
the date of the enactment of this sub-
section, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly or indi-
rectly, during the entire 30-year period 
ending on the date of the enactment of this 
subsection by individuals who are members 
of the same family, and does not publish or 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in a State in which the 
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community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on the date of the en-
actment of this subsection by individ-
uals who are members of the same 
family, 
‘‘(III) by 1 or more trusts, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), or 
‘‘(IV) by a combination of per-
sons described in subclause (I), (II), 
or (III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation. 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly 
published on newsprint. 
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‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other 
person possesses, directly or indirectly, the 
power to direct or cause the direction and man-
agement of such person (including the power to 
elect a majority of the members of the board of 
directors of such person) through the ownership 
of voting securities. 
‘‘(6) CONTROLLED
GROUP.—For purposes of 
this subsection, the term ‘controlled group’ means all 
persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 as of the 
date of the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Subsection (m) of section 
303 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1083(m)), as added by the Setting Every 
Community Up for Retirement Enhancement Act of 2019, 
is amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
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had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE NEWSPAPER PLAN SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means 
the plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(4) ALTERNATIVE MINIMUM FUNDING STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
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‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as pro-
vided in clause (ii), the first, second, and 
third segment rates in effect for any 
month for purposes of this section shall be 
8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for pur-
poses of determining the funding target 
and normal cost of a plan for any plan 
year, the present value of any benefits ac-
crued or earned under the plan for a plan 
year with respect to which an election 
under paragraph (1) is in effect shall be 
determined on the basis of the United 
States Treasury obligation yield curve for 
the day that is the valuation date of such 
plan for such plan year. 
‘‘(iii) UNITED STATES TREASURY OB-
LIGATION YIELD CURVE.—For purposes of 
this subsection, the term ‘United States 
Treasury obligation yield curve’ means, 
with respect to any day, a yield curve 
which shall be prescribed by the Secretary 
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of the Treasury for such day on interest- 
bearing obligations of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) 
for all plan years preceding the first plan 
year to which the election under paragraph 
(1) applies (and all shortfall amortization 
installments determined with respect to 
such bases) shall be reduced to zero under 
rules similar to the rules of subsection 
(c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding 
shortfall of such plan for such plan year 
(determined using the interest rates as 
modified under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 
30-YEAR
PERIOD.—Subpara-
graphs (A) and (B) of subsection (c)(2) 
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shall be applied by substituting ‘30-plan- 
year’ for ‘7-plan-year’ each place it ap-
pears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION FROM AT-RISK TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any 
time during the 11-year period ending on 
the date of the enactment of this sub-
section, 
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862 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly, or indi-
rectly, during the entire 30-year period 
ending on the date of the enactment of this 
subsection by individuals who are members 
of the same family, and does not publish or 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
‘‘(iii) is controlled, directly, or indi-
rectly— 
‘‘(I) by 1 or more persons resid-
ing primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on the date of the en-
actment of this subsection by individ-
uals who are members of the same 
family, 
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