(d) CONSIDERATION
OF ALTERNATIVES
BY COR-
PORATION AND PLAN SPONSOR.—Section 4042(c) of such 
Act (as amended by the preceding provisions of this sec-
tion) is further amended by adding after the seventh sen-
tence the following: ‘‘The corporation and the plan admin-
istrator may proceed with such an agreement only if they 
have made reasonable efforts to consider available alter-
natives to termination (including, but not limited to, alter-
natives described in paragraph (4) of this subsection) and 
the plan participants and beneficiaries have been provided 
with at least 60 days notice before such agreement is given 
effect. During such 60-day period, a participant or bene-
ficiary of the plan or an employee organization rep-
resenting such participants or beneficiaries may bring an 
action in the appropriate court to seek appropriate equi-
table relief if such reasonable efforts have not been 
made.’’. 
(e) EFFORTS BY THE CORPORATION AT CONSULTA-
TION WITH PARTIES.—Section 4042(c) of such Act is 
amended by adding at the end the following new para-
graph: 
‘‘(4) CONSULTATION REGARDING REASONABLE 
AVAILABLE ALTERNATIVES TO TERMINATION.— 
‘‘(A) IN GENERAL.—Prior to making any 
determination referred to in the preceding pro-
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visions of this subsection, the corporation shall 
consult with the plan participants and (in the 
case of a plan maintained pursuant to a collec-
tive bargaining agreement) the employee orga-
nization representing plan participants for pur-
poses of collective bargaining to determine 
whether there are any reasonable available al-
ternatives to termination (including, but not 
limited to, alternatives described subparagraph 
(B). 
‘‘(B) 
REASONABLE
ALTERNATIVES
TO 
TERMINATION.—The reasonable alternatives to 
termination referred to in subparagraph (A) 
consist of measures which are in the best inter-
est of plan participants and which include (but 
are not limited to) the following: 
‘‘(i) Financing or loans sought by any 
member of the plan sponsor’s controlled 
group, with or without assistance from the 
corporation, in order to obtain plan financ-
ing, including back-up guarantees to any 
such financing which the corporation is 
hereby authorized to provide for such pur-
pose. 
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‘‘(ii) New plan structures agreed to by 
the parties, such as transfer of plan liabil-
ities to multiemployer plans, new benefit 
formulas for new hires or non-vested par-
ticipants, or other plan restructuring alter-
natives agreed to by the parties. 
‘‘(iii) Reinsurance which the corpora-
tion is hereby authorized to obtain for the 
plan. 
‘‘(iv) An agreement by the parties au-
thorizing alternative funding schedules, ap-
proved by the corporation, which would 
modify plan funding, subject to the min-
imum funding requirements for the plan 
under part 3 of subtitle B of title I. 
‘‘(v) Purchase by the plan sponsor of 
an annuity contract to cover liabilities of 
the plan, which the corporation is hereby 
authorized to guarantee as necessary to se-
cure such a contract.’’. 
(f) NOTICE OF RIGHT TO CHALLENGE DETERMINA-
TIONS RELATING TO PLAN TERMINATION.— 
(1) 
PROCEDURE
FOR
STANDARD
TERMI-
NATIONS.—Section 4041(b)(2)(B) of such Act (29 
U.S.C. 1341(b)(2)(B)) is amended in clause (i) by 
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striking ‘‘and’’ at the end, in clause (ii)(V) by strik-
ing ‘‘require.’’ and inserting ‘‘require, and’’, and by 
inserting after clause (ii) the following new clause: 
‘‘(iii) the right of participants and 
beneficiaries to challenge determinations 
under this section.’’. 
(2) TERMINATION PROCEEDINGS FOR DISTRESS 
TERMINATIONS AND TERMINATIONS COMMENCED BY 
THE PBGC.—Section 4042(a) of such Act (29 U.S.C. 
1342(a)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Prior to commencing pro-
ceedings under this section with respect to any plan, 
the corporation shall provide notice to plan partici-
pants and beneficiaries of the right to challenge de-
terminations under this section, written in a manner 
likely to be understood by the participant or bene-
ficiary.’’. 
SEC. 302. EFFECTIVE DATE OF TITLE. 
The amendments made by this title shall apply with 
respect to any plans undergoing termination proceedings 
pursuant to section 4041 or 4042 of the Employee Retire-
ment Income Security Act of 1974 which are pending on 
or after the date of the enactment of this Act. 
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TITLE IV—RECOVERY OF BEN-
EFIT LIABILITIES WHICH ARE 
NOT GUARANTEED 
SEC. 401. AMENDMENT TO TITLE 11 OF THE UNITED 
STATES CODE. 
Section 507(a)(1) of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(D) Subject to subparagraphs (A), (B), 
and (C), allowed unsecured claims for benefit li-
abilities to participants and beneficiaries under 
a single-employer plan (as defined in section 
4001(a)(15) of the Employee Retirement In-
come Security Act of 1974) in connection with 
the termination of the plan, in excess of the 
benefits payable to the participants and bene-
ficiaries by the Pension Benefit Guaranty Cor-
poration under section 4022 of the Employee 
Retirement Income Security Act of 1974 in 
connection with such termination.’’. 
SEC. 402. EFFECTIVE DATE; APPLICATION OF AMENDMENT. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), section 401 and the amendment made by such 
section shall take effect on the date of the enactment of 
this Act. 
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(b) APPLICATION OF AMENDMENT.—The amendment 
made by section 401 shall not apply with respect to cases 
commenced under title 11 of the United States Code be-
fore the date of the enactment of this Act. 
Æ 
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