1225 
HR 6800 PCS
clared pursuant to section 319 of the Public Health Serv-
ice Act (42 U.S.C. 247d) as a result of COVID–19, includ-
ing any renewal thereof. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) ADVANCED TELECOMMUNICATIONS SERV-
ICE.—The term ‘advanced telecommunications serv-
ice’ means a service that provides advanced tele-
communications capability (as defined in section 706 
of the Telecommunications Act of 1996 (47 U.S.C. 
1302)). 
‘‘(2) BROADBAND
INTERNET
ACCESS
SERV-
ICE.—The term ‘broadband internet access service’ 
has the meaning given such term in section 8.1(b) 
of title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
‘‘(3) INDIVIDUAL CUSTOMER.—The term ‘indi-
vidual customer’ means an individual who contracts 
with a mass-market retail provider of advanced tele-
communications service or voice service to provide 
service to such individual. 
‘‘(4) REASONABLE NETWORK MANAGEMENT.— 
The term ‘reasonable network management’— 
‘‘(A) means the use of a practice that— 
‘‘(i) has a primarily technical network 
management justification; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01225
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1226 
HR 6800 PCS
‘‘(ii) is primarily used for and tailored 
to achieving a legitimate network manage-
ment purpose, taking into account the par-
ticular network architecture and tech-
nology of the service; and 
‘‘(B) does not include other business prac-
tices. 
‘‘(5) SMALL BUSINESS.—The term ‘small busi-
ness’ has the meaning given such term under section 
601(3) of title 5, United States Code. 
‘‘(6) VOICE SERVICE.—The term ‘voice service’ 
has the meaning given such term under section 
227(e)(8) of the Communications Act of 1934 (47 
U.S.C. 227(e)(8)). 
‘‘(7) WI-FI.—The term ‘Wi-Fi’ means a wire-
less networking protocol based on Institute of Elec-
trical and Electronics Engineers standard 802.11 
(or any successor standard). 
‘‘(8) 
WI-FI
HOTSPOT.—The 
term 
‘Wi-Fi 
hotspot’ means a device that is capable of— 
‘‘(A) receiving mobile broadband internet 
access service; and 
‘‘(B) sharing such service with another de-
vice through the use of Wi-Fi.’’. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01226
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1227 
HR 6800 PCS
TITLE V—DON’T BREAK UP THE 
T–BAND 
SEC. 130501. REPEAL OF REQUIREMENT TO REALLOCATE 
AND AUCTION T–BAND SPECTRUM. 
(a) REPEAL.—Section 6103 of the Middle Class Tax 
Relief and Job Creation Act of 2012 (47 U.S.C. 1413) 
is repealed. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by striking the 
item relating to section 6103. 
TITLE VI—NATIONAL SUICIDE 
HOTLINE DESIGNATION 
SEC. 130601. FINDINGS. 
Congress finds the following: 
(1) According to the American Foundation for 
Suicide Prevention, on average, there are 129 sui-
cides per day in the United States. 
(2) To prevent future suicides, it is critical to 
transition the cumbersome, existing 10-digit Na-
tional Suicide Hotline to a universal, easy-to-remem-
ber, 3-digit phone number and connect people in cri-
sis with life-saving resources. 
(3) It is essential that people in the United 
States have access to a 3-digit national suicide hot-
line across all geographic locations. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01227
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1228 
HR 6800 PCS
(4) The designated suicide hotline number will 
need to be both familiar and recognizable to all peo-
ple in the United States. 
SEC. 130602. UNIVERSAL TELEPHONE NUMBER FOR NA-
TIONAL SUICIDE PREVENTION AND MENTAL 
HEALTH CRISIS HOTLINE SYSTEM. 
(a) IN GENERAL.—Section 251(e) of the Commu-
nications Act of 1934 (47 U.S.C. 251(e)) is amended by 
adding at the end the following: 
‘‘(4) UNIVERSAL TELEPHONE NUMBER FOR NA-
TIONAL SUICIDE PREVENTION AND MENTAL HEALTH 
CRISIS HOTLINE SYSTEM.—9–8–8 is designated as 
the universal telephone number within the United 
States for the purpose of the national suicide pre-
vention and mental health crisis hotline system oper-
ating through the National Suicide Prevention Life-
line maintained by the Assistant Secretary for Men-
tal Health and Substance Use under section 520E– 
3 of the Public Health Service Act (42 U.S.C. 
290bb–36c) and through the Veterans Crisis Line 
maintained by the Secretary of Veterans Affairs 
under section 1720F(h) of title 38, United States 
Code.’’. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01228
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1229 
HR 6800 PCS
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date that is 1 year 
after the date of the enactment of this Act. 
(c) REQUIRED REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the Assistant 
Secretary for Mental Health and Substance Use and the 
Secretary of Veterans Affairs shall jointly submit a report 
that details the resources necessary to make the use of 
9–8–8, as designated under paragraph (4) of section 
251(e) of the Communications Act of 1934 (47 U.S.C. 
251(e)), as added by subsection (a) of this section, oper-
ational and effective across the United States to— 
(1) the Committee on Commerce, Science, and 
Transportation of the Senate; 
(2) the Committee on Appropriations of the 
Senate; 
(3) the Committee on Energy and Commerce of 
the House of Representatives; and 
(4) the Committee on Appropriations of the 
House of Representatives. 
SEC. 130603. STATE AUTHORITY OVER FEES. 
(a) AUTHORITY.— 
(1) IN
GENERAL.—Nothing in this Act, any 
amendment made by this Act, the Communications 
Act of 1934 (47 U.S.C. 151 et seq.), or any Com-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01229
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1230 
HR 6800 PCS
mission regulation or order may prevent the imposi-
tion and collection of a fee or charge applicable to 
a voice service specifically designated by a State, a 
political subdivision of a State, an Indian Tribe, or 
a village or regional corporation serving a region es-
tablished pursuant to the Alaska Native Claims Set-
tlement Act (43 U.S.C. 1601 et seq.) for the support 
or implementation of 9–8–8 services, if the fee or 
charge is held in a sequestered account to be obli-
gated or expended only in support of 9–8–8 services, 
or enhancements of such services, as specified in the 
provision of State or local law adopting the fee or 
charge. 
(2) USE OF 9–8–8 FEES.—A fee or charge col-
lected under this subsection shall only be imposed, 
collected, and used to pay expenses that a State, a 
political subdivision of a State, an Indian Tribe, or 
a village or regional corporation serving a region es-
tablished pursuant to the Alaska Native Claims Set-
tlement Act (43 U.S.C. 1601 et seq.) is expected to 
incur that are reasonably attributable to— 
(A) ensuring the efficient and effective 
routing of calls made to the 9–8–8 national sui-
cide prevention and mental health crisis hotline 
to an appropriate crisis center; or 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01230
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1231 
HR 6800 PCS
(B) the provision of acute mental health, 
crisis outreach, and stabilization services di-
rectly responding to the 9–8–8 national suicide 
prevention and mental health crisis hotline. 
(b) FEE ACCOUNTABILITY REPORT.—To ensure effi-
ciency, transparency, and accountability in the collection 
and expenditure of a fee or charge for the support or im-
plementation of 9–8–8 services, not later than 2 years 
after the date of the enactment of this Act, and annually 
thereafter, the Commission shall submit to the Commit-
tees on Commerce, Science, and Transportation and Ap-
propriations of the Senate and the Committees on Energy 
and Commerce and Appropriations of the House of Rep-
resentatives a report that— 
(1) details the status in each State, political 
subdivision of a State, Indian Tribe, or village or re-
gional corporation serving a region established pur-
suant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.) of the collection and dis-
tribution of such fees or charges, including a de-
tailed report about how those fees or charges are 
being used to support 9–8–8 services; and 
(2) includes findings on the amount of revenues 
obligated or expended by each State, political sub-
division of a State, Indian Tribe, or village or re-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01231
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1232 
HR 6800 PCS
gional corporation serving a region established pur-
suant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.) for any purpose other than 
the purpose for which any such fees or charges are 
specified. 
(c) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(2) STATE.—The term ‘‘State’’ has the mean-
ing given that term in section 7 of the Wireless 
Communications and Public Safety Act of 1999 (47 
U.S.C. 615b). 
(3) VOICE SERVICE.—The term ‘‘voice service’’ 
has the meaning given that term in section 
227(e)(8) of the Communications Act of 1934 (47 
U.S.C. 227(e)(8)). 
SEC. 130604. LOCATION IDENTIFICATION REPORT. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Commu-
nications Commission shall submit to the appropriate com-
mittees a report that examines the feasibility and cost of 
including an automatic dispatchable location that would 
be conveyed with a 9–8–8 call, regardless of the techno-
logical platform used and including with calls from multi- 
line telephone systems (as defined in section 6502 of the 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01232
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1233 
HR 6800 PCS
Middle Class Tax Relief and Job Creation Act of 2012 
(47 U.S.C. 1471)). 
(b) DEFINITIONS.—In this section: 
(1) APPROPRIATE
COMMITTEES.—The term 
‘‘appropriate committees’’ means the following: 
(A) The Committee on Commerce, Science, 
and Transportation of the Senate. 
(B) The Committee on Health, Education, 
Labor, and Pensions of the Senate. 
(C) The Committee on Energy and Com-
merce of the House of Representatives. 
(2) 
DISPATCHABLE
LOCATION.—The 
term 
‘‘dispatchable location’’ means the street address of 
the calling party and additional information such as 
room number, floor number, or similar information 
necessary to adequately identify the location of the 
calling party. 
SEC. 130605. REPORT ON CERTAIN TRAINING PROGRAMS. 
(a) SENSE OF THE CONGRESS.—It is the sense of the 
Congress that— 
(1) youth who are lesbian, gay, bisexual, 
transgender, or queer (referred to in this section as 
‘‘LGBTQ’’) are more than 4 times more likely to 
contemplate suicide than their peers; 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01233
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1234 
HR 6800 PCS
(2) 1 in 5 LGBTQ youth and more than 1 in 
3 transgender youth report attempting suicide this 
past year; and 
(3) the Substance Abuse and Mental Health 
Services Administration must be equipped to provide 
specialized resources to this at-risk community. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Assistant Secretary for 
Mental Health and Substance Use shall submit to the 
Committee on Commerce, Science, and Transportation of 
the Senate, the Committee on Health, Education, Labor, 
and Pensions of the Senate, and the Committee on Energy 
and Commerce of the House of Representatives a report 
that— 
(1) details a strategy, to be developed in con-
sultation with 1 or more organizations with expertise 
in suicide of LGBTQ youth as well as 1 or more or-
ganizations with expertise in suicide of other high 
risk populations, for the Substance Abuse and Men-
tal Health Services Administration to offer, support, 
or provide technical assistance to training programs 
for National Suicide Prevention Lifeline counselors 
to increase competency in serving LGBTQ youth 
and other high risk populations; and 
(2) includes recommendations regarding— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01234
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1235 
HR 6800 PCS
(A) the facilitation of access to services 
that are provided to specially trained staff and 
partner organizations for LGBTQ individuals 
and other high risk populations; and 
(B) a strategy for optimally implementing 
an Integrated Voice Response, or other equally 
effective mechanism, to allow National Suicide 
Prevention Lifeline callers who are LGBTQ 
youth or members of other high risk popu-
lations to access specialized services. 
TITLE 
VII—COVID–19 
COMPAS-
SION AND MARTHA WRIGHT 
PRISON PHONE JUSTICE 
SEC. 130701. FINDINGS. 
Congress finds the following: 
(1) Prison, jails, and other confinement facili-
ties in the United States have unique telecommuni-
cations needs due to safety and security concerns. 
(2) Unjust and unreasonable charges for tele-
phone and advanced communications services in con-
finement facilities negatively impact the safety and 
security of communities in the United States by 
damaging relationships between incarcerated persons 
and their support systems, thereby exacerbating re-
cidivism. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01235
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1236 
HR 6800 PCS
(3) The COVID–19 pandemic has greatly inten-
sified these concerns. Jails and prisons have become 
epicenters for the spread of the virus, with incarcer-
ated persons concentrated in small, confined spaces 
and often without access to adequate health care. At 
Cook County jail alone, hundreds of incarcerated 
persons and jail staff have tested positive for the 
virus since its outbreak. 
(4) To prevent the spread of the virus, many 
jails and prisons across the country suspended pub-
lic visitation, leaving confinement facility commu-
nications services as the only way that incarcerated 
persons can stay in touch with their families. 
(5) All people in the United States, including 
anyone who pays for confinement facility commu-
nications services, should have access to communica-
tions services at charges that are just and reason-
able. 
(6) Unemployment has risen sharply as a result 
of the COVID–19 pandemic, straining the incomes 
of millions of Americans and making it even more 
difficult for families of incarcerated persons to pay 
the high costs of confinement facility communica-
tions services. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01236
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1237 
HR 6800 PCS
(7) Certain markets for confinement facility 
communications services are distorted due to reverse 
competition, in which the financial interests of the 
entity making the buying decision (the confinement 
facility) are aligned with the seller (the provider of 
confinement facility communications services) and 
not the consumer (the incarcerated person or a 
member of his or her family). This reverse competi-
tion occurs because site commission payments to the 
confinement facility from the provider of confine-
ment facility communications services are the chief 
criterion many facilities use to select their provider 
of confinement facility communications services. 
(8) Charges for confinement facility commu-
nications services that have been shown to be unjust 
and unreasonable are often a result of site commis-
sion payments that far exceed the costs incurred by 
the confinement facility in accommodating these 
services. 
(9) Unjust and unreasonable charges have been 
assessed for both audio and video services and for 
both intrastate and interstate communications from 
confinement facilities. 
(10) Though Congress enacted emergency legis-
lation to allow free communications in Federal pris-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01237
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1238 
HR 6800 PCS
ons during the pandemic, it does not cover commu-
nications to or from anyone incarcerated in State 
and local prisons or jails. 
(11) Mrs. Martha Wright-Reed led a campaign 
for just communications rates for incarcerated peo-
ple for over a decade. 
(12) Mrs. Wright-Reed was the lead plaintiff in 
Wright v. Corrections Corporation of America, CA 
No. 00–293 (GK) (D.D.C. 2001). 
(13) That case ultimately led to the Wright Pe-
tition at the Federal Communications Commission, 
CC Docket No. 96–128 (November 3, 2003). 
(14) As a grandmother, Mrs. Wright-Reed was 
forced to choose between purchasing medication and 
communicating with her incarcerated grandson. 
(15) Mrs. Wright-Reed passed away on Janu-
ary 18, 2015, before fully realizing her dream of just 
communications rates for all people. 
SEC. 130702. REQUIREMENTS FOR CONFINEMENT FACILITY 
COMMUNICATIONS SERVICES, DURING THE 
COVID–19 PANDEMIC AND OTHER TIMES. 
(a) IN GENERAL.—Section 276 of the Communica-
tions Act of 1934 (47 U.S.C. 276) is amended by adding 
at the end the following: 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01238
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1239 
HR 6800 PCS
‘‘(e) ADDITIONAL REQUIREMENTS
FOR CONFINE-
MENT FACILITY COMMUNICATIONS SERVICES.— 
‘‘(1) AUTHORITY.— 
‘‘(A) IN GENERAL.—All charges, practices, 
classifications, and regulations for and in con-
nection with confinement facility communica-
tions services shall be just and reasonable, and 
any such charge, practice, classification, or reg-
ulation that is unjust or unreasonable is de-
clared to be unlawful. 
‘‘(B) RULEMAKING REQUIRED.—Not later 
than 18 months after the date of the enactment 
of this subsection, the Commission shall issue 
rules to adopt, for the provision of confinement 
facility communications services, rates and an-
cillary service charges that are just and reason-
able, which shall be the maximum such rates 
and charges that a provider of confinement fa-
cility communications services may charge for 
such services. In determining rates and charges 
that are just and reasonable, the Commission 
shall adopt such rates and charges based on the 
average industry costs of providing such serv-
ices using data collected from providers of con-
finement facility communications services. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01239
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1240 
HR 6800 PCS
‘‘(C) BIENNIAL
REVIEW.—Not less fre-
quently than every 2 years following the 
issuance of rules under subparagraph (B), the 
Commission shall— 
‘‘(i) determine whether the rates and 
ancillary service charges authorized by the 
rules issued under such subparagraph re-
main just and reasonable; and 
‘‘(ii) if the Commission determines 
under clause (i) that any such rate or 
charge does not remain just and reason-
able, revise such rules so that such rate or 
charge is just and reasonable. 
‘‘(2) INTERIM RATE CAPS.—Until the Commis-
sion issues the rules required by paragraph (1)(B), 
a provider of confinement facility communications 
services may not charge a rate for any voice service 
communication using confinement facility commu-
nications services that exceeds the following: 
‘‘(A) For debit calling or prepaid calling, 
$0.04 per minute. 
‘‘(B) For collect calling, $0.05 per minute. 
‘‘(3) ASSESSMENT ON PER-MINUTE BASIS.—Ex-
cept as provided in paragraph (4), a provider of con-
finement facility communications services— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01240
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1241 
HR 6800 PCS
‘‘(A) shall assess all charges for a commu-
nication using such services on a per-minute 
basis for the actual duration of the communica-
tion, measured from communication acceptance 
to termination, rounded up to the next full 
minute, except in the case of charges for serv-
ices that the confinement facility offers free of 
charge or for amounts below the amounts per-
mitted under this subsection; and 
‘‘(B) may not charge a per-communication 
or per-connection charge for a communication 
using such services. 
‘‘(4) ANCILLARY SERVICE CHARGES.— 
‘‘(A) GENERAL PROHIBITION.—A provider 
of confinement facility communications services 
may not charge an ancillary service charge 
other than— 
‘‘(i) if the Commission has not yet 
issued the rules required by paragraph 
(1)(B), a charge listed in subparagraph 
(B) of this paragraph; or 
‘‘(ii) a charge authorized by the rules 
adopted by the Commission under para-
graph (1). 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01241
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1242 
HR 6800 PCS
‘‘(B) PERMITTED CHARGES AND RATES.— 
If the Commission has not yet issued the rules 
required by paragraph (1)(B), a provider of 
confinement facility communications services 
may not charge a rate for an ancillary service 
charge in excess of the following: 
‘‘(i) In the case of an automated pay-
ment fee, 2.9 percent of the total charge 
on which the fee is assessed. 
‘‘(ii) In the case of a fee for single-call 
and related services, the exact transaction 
fee charged by the third-party provider, 
with no markup. 
‘‘(iii) In the case of a live agent fee, 
$5.95 per use. 
‘‘(iv) In the case of a paper bill or 
statement fee, $2 per use. 
‘‘(v) In the case of a third-party fi-
nancial transaction fee, the exact fee, with 
no markup, charged by the third party for 
the transaction. 
‘‘(5) PROHIBITION ON SITE COMMISSIONS.—A 
provider of confinement facility communications 
services may not assess a site commission. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01242
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1243 
HR 6800 PCS
‘‘(6) RELATIONSHIP TO STATE LAW.—A State 
or political subdivision of a State may not enforce 
any law, rule, regulation, standard, or other provi-
sion having the force or effect of law relating to con-
finement facility communications services that allows 
for higher rates or other charges to be assessed for 
such services than is permitted under any Federal 
law or regulation relating to confinement facility 
communications services. 
‘‘(7) DEFINITIONS.—In this subsection: 
‘‘(A) ANCILLARY SERVICE CHARGE.—The 
term ‘ancillary service charge’ means any 
charge a consumer may be assessed for the set-
ting up or use of a confinement facility commu-
nications service that is not included in the per- 
minute charges assessed for individual commu-
nications. 
‘‘(B) AUTOMATED
PAYMENT
FEE.—The 
term ‘automated payment fee’ means a credit 
card payment, debit card payment, or bill proc-
essing fee, including a fee for a payment made 
by means of interactive voice response, the 
internet, or a kiosk. 
‘‘(C) COLLECT CALLING.—The term ‘col-
lect calling’ means an arrangement whereby a 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01243
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1244 
HR 6800 PCS
credit-qualified party agrees to pay for charges 
associated with a communication made to such 
party using confinement facility communica-
tions services and originating from within a 
confinement facility. 
‘‘(D) CONFINEMENT FACILITY.—The term 
‘confinement facility’— 
‘‘(i) means a jail or a prison; and 
‘‘(ii) includes any juvenile, detention, 
work release, or mental health facility that 
is used primarily to hold individuals who 
are— 
‘‘(I) awaiting adjudication of 
criminal charges or an immigration 
matter; or 
‘‘(II) serving a sentence for a 
criminal conviction. 
‘‘(E) CONFINEMENT
FACILITY
COMMU-
NICATIONS
SERVICE.—The term ‘confinement 
facility communications service’ means a service 
that allows incarcerated persons to make elec-
tronic communications (whether intrastate, 
interstate, or international and whether made 
using video, audio, or any other communicative 
method, including advanced communications 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01244
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1245 
HR 6800 PCS
services) to individuals outside the confinement 
facility, or to individuals inside the confinement 
facility, where the incarcerated person is being 
held, regardless of the technology used to de-
liver the service. 
‘‘(F) CONSUMER.—The term ‘consumer’ 
means the party paying a provider of confine-
ment facility communications services. 
‘‘(G) DEBIT
CALLING.—The term ‘debit 
calling’ means a presubscription or comparable 
service which allows an incarcerated person, or 
someone acting on an incarcerated person’s be-
half, to fund an account set up through a pro-
vider that can be used to pay for confinement 
facility communications services originated by 
the incarcerated person. 
‘‘(H) FEE
FOR
SINGLE-CALL
AND
RE-
LATED SERVICES.—The term ‘fee for single-call 
and related services’ means a billing arrange-
ment whereby communications made by an in-
carcerated person using collect calling are billed 
through a third party on a per-communication 
basis, where the recipient does not have an ac-
count with the provider of confinement facility 
communications services. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01245
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1246 
HR 6800 PCS
‘‘(I) INCARCERATED
PERSON.—The term 
‘incarcerated person’ means a person detained 
at a confinement facility, regardless of the du-
ration of the detention. 
‘‘(J) JAIL.—The term ‘jail’— 
‘‘(i) means a facility of a law enforce-
ment agency of the Federal Government or 
of a State or political subdivision of a 
State that is used primarily to hold indi-
viduals who are— 
‘‘(I) awaiting adjudication of 
criminal charges; 
‘‘(II) post-conviction and com-
mitted to confinement for sentences of 
one year or less; or 
‘‘(III) post-conviction and await-
ing transfer to another facility; and 
‘‘(ii) includes— 
‘‘(I) city, county, or regional fa-
cilities that have contracted with a 
private company to manage day-to- 
day operations; 
‘‘(II) privately-owned and oper-
ated facilities primarily engaged in 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01246
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1247 
HR 6800 PCS
housing city, county, or regional in-
carcerated persons; and 
‘‘(III) facilities used to detain in-
dividuals pursuant to a contract with 
U.S. Immigration and Customs En-
forcement. 
‘‘(K) LIVE
AGENT
FEE.—The term ‘live 
agent fee’ means a fee associated with the op-
tional use of a live operator to complete a con-
finement facility communications service trans-
action. 
‘‘(L) PAPER BILL OR STATEMENT FEE.— 
The term ‘paper bill or statement fee’ means a 
fee associated with providing a consumer an op-
tional paper billing statement. 
‘‘(M) PER-COMMUNICATION
OR
PER-CON-
NECTION CHARGE.—The term ‘per-communica-
tion or per-connection charge’ means a one-time 
fee charged to a consumer at the initiation of 
a communication. 
‘‘(N) PREPAID CALLING.—The term ‘pre-
paid calling’ means a calling arrangement that 
allows a consumer to pay in advance for a spec-
ified amount of confinement facility commu-
nications services. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01247
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1248 
HR 6800 PCS
‘‘(O) PRISON.—The term ‘prison’— 
‘‘(i) means a facility operated by a 
State or Federal agency that is used pri-
marily to confine individuals convicted of 
felonies and sentenced to terms in excess 
of one year; and 
‘‘(ii) includes— 
‘‘(I) public and private facilities 
that provide outsource housing to 
State or Federal agencies such as 
State Departments of Correction and 
the Federal Bureau of Prisons; and 
‘‘(II) facilities that would other-
wise be jails but in which the majority 
of incarcerated persons are post-con-
viction or are committed to confine-
ment for sentences of longer than one 
year. 
‘‘(P) PROVIDER OF CONFINEMENT FACIL-
ITY
COMMUNICATIONS
SERVICES.—The term 
‘provider of confinement facility communica-
tions services’ means any communications serv-
ice provider that provides confinement facility 
communications services, regardless of the tech-
nology used. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01248
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1250 
HR 6800 PCS
‘‘(R) THIRD-PARTY
FINANCIAL
TRANS-
ACTION FEE.—The term ‘third-party financial 
transaction fee’ means the exact fee, with no 
markup, that a provider of confinement facility 
communications services is charged by a third 
party to transfer money or process a financial 
transaction to facilitate the ability of a con-
sumer to make an account payment via a third 
party. 
‘‘(S) VOICE
SERVICE.—The term ‘voice 
service’— 
‘‘(i) means any service that is inter-
connected with the public switched tele-
phone network and that furnishes voice 
communications to an end user using re-
sources from the North American Num-
bering Plan or any successor to the North 
American Numbering Plan adopted by the 
Commission under section 251(e)(1); and 
‘‘(ii) includes— 
‘‘(I) transmissions from a tele-
phone facsimile machine, computer, or 
other device to a telephone facsimile 
machine; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01250
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1251 
HR 6800 PCS
‘‘(II) 
without 
limitation, 
any 
service that enables real-time, two-way 
voice communications, including any 
service that requires internet protocol- 
compatible customer premises equip-
ment (commonly known as ‘CPE’) 
and permits out-bound calling, wheth-
er or not the service is one-way or 
two-way voice over internet protocol.’’. 
(b) CONFORMING AMENDMENT.—Section 276(d) of 
the Communications Act of 1934 (47 U.S.C. 276(d)) is 
amended by striking ‘‘inmate telephone service in correc-
tional institutions’’ and inserting ‘‘confinement facility 
communications services (as defined in subsection 
(e)(7))’’. 
(c) EXISTING CONTRACTS.— 
(1) IN GENERAL.—In the case of a contract 
that was entered into and under which a provider of 
confinement facility communications services was 
providing such services at a confinement facility on 
or before the date of the enactment of this Act— 
(A) paragraphs (1) through (5) of sub-
section (e) of section 276 of the Communica-
tions Act of 1934, as added by subsection (a) 
of this section, shall apply to the provision of 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01251
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1252 
HR 6800 PCS
confinement facility communications services by 
such provider at such facility beginning on the 
earlier of— 
(i) the date that is 60 days after such 
date of enactment; or 
(ii) the date of the termination of the 
contract; and 
(B) the terms of such contract may not be 
extended after such date of enactment, whether 
by exercise of an option or otherwise. 
(2) DEFINITIONS.—In this subsection, the 
terms ‘‘confinement facility’’, ‘‘confinement facility 
communications service’’, and ‘‘provider of confine-
ment facility communications services’’ have the 
meanings given such terms in paragraph (7) of sub-
section (e) of section 276 of the Communications 
Act of 1934, as added by subsection (a) of this sec-
tion. 
SEC. 130703. AUTHORITY. 
Section 2(b) of the Communications Act of 1934 (47 
U.S.C. 152(b)) is amended by inserting ‘‘section 276,’’ 
after ‘‘227, inclusive,’’. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01252
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1253 
HR 6800 PCS
TITLE 
VIII—HEALTHCARE 
BROADBAND 
EXPANSION 
DURING COVID–19 
SEC. 130801. EXPANSION OF RURAL HEALTH CARE PRO-
GRAM OF FCC IN RESPONSE TO COVID–19. 
(a) PROMULGATION OF REGULATIONS REQUIRED.— 
Not later than 7 days after the date of the enactment of 
this Act, the Commission shall promulgate regulations 
modifying the requirements in subpart G of part 54 of 
title 47, Code of Federal Regulations, in the following 
manner: 
(1) A health care provider not located in a rural 
area shall be treated as a rural health care provider 
for the purposes of the Healthcare Connect Fund 
Program. 
(2) The discount rate for an eligible expense 
through the Healthcare Connect Fund Program (as 
described in section 54.611(a) of title 47, Code of 
Federal Regulations, or any successor regulation) 
shall be increased to 85 percent in funding years 
2019, 2020, and 2021 for eligible equipment pur-
chased or eligible services rendered in such funding 
years (including for eligible equipment, upfront pay-
ments, and multi-year commitments without limita-
tion). 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01253
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1254 
HR 6800 PCS
(3) A temporary, mobile, or satellite health care 
delivery site shall be treated as a health care pro-
vider or an eligible site of a health care provider for 
purposes of determining eligibility for the Healthcare 
Connect Fund Program or the Telecommunications 
Program. 
(4) The waiver of the application window speci-
fied in section 54.621(a) of title 47, Code of Federal 
Regulations (or any successor regulation), for fund-
ing year 2019. 
(5) The adoption and implementation of a roll-
ing application process to allow a health care pro-
vider to apply for funding. 
(6) The following changes to certain bidding re-
quirements: 
(A) A waiver of any requirement under 
section 54.622 of title 47, Code of Federal Reg-
ulations (or any successor regulation), for a 
health care provider upgrading an existing sup-
ported service at a particular location, effective 
as of the date of declaration of the public health 
emergency pursuant to section 319 of the Pub-
lic Health Service Act (42 U.S.C. 247d) as a 
result of confirmed cases of COVID–19, if the 
health care provider maintains the same eligible 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01254
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1255 
HR 6800 PCS
service provider to provide the upgraded service 
at such location. 
(B) Reduction of the 28-day waiting period 
described in section 54.622(g) of title 47, Code 
of Federal Regulations (or any successor regu-
lation), to a 14-day waiting period. 
(C) Modification of the requirements in 
section 54.622 of title 47, Code of Federal Reg-
ulations (or any successor regulation), to— 
(i) provide that bid evaluation criteria 
may give additional consideration to the 
speed with which an eligible service pro-
vider can initiate service; and 
(ii) encourage applicants to consider 
bids from different providers to provide 
service to different locations of such appli-
cants, if considering bids in this manner 
would expedite the overall timeline for ini-
tiating or expanding service to individual 
locations. 
(7) Issuance of a decision on each application 
for funding not later than 60 days after the date on 
which the application is filed. 
(8) Release of funding not later than 30 days 
after the date on which an invoice is submitted with 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01255
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1256 
HR 6800 PCS
respect to an application that is approved, applicable 
services have been provided, and required invoices 
have been submitted as required under program 
rules. 
(b) ADDITIONAL CHANGES TO RURAL HEALTH CARE 
PROGRAM.— 
(1) RELEASE OF FUNDING FOR OUTSTANDING 
FUNDING REQUESTS.— 
(A) IN GENERAL.—The Commission shall 
ensure the release of funding for all requests 
(outstanding as of the date of the enactment of 
this Act) under the Rural Health Care Program 
not later than 60 days after the date of the en-
actment of this Act, except that for outstanding 
funding requests that are subject to a review of 
the applicable urban and rural rates, the Com-
mission shall ensure the release of interim fund-
ing not later than 60 days after the date of the 
enactment of this Act, disbursed at 65 percent 
of the funding request, subject to a true-up fol-
lowing the completion of such review. 
(B) LIMITATION.—This paragraph shall 
not apply to any party or successor-in-interest 
to any party to which the Commission, during 
the period beginning on the date that is 1 year 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01256
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1257 
HR 6800 PCS
before the date of the enactment of this Act 
and ending on January 31, 2020, has issued a 
Letter of Inquiry, Notice of Apparent Liability, 
or Forfeiture Order relating to the party’s par-
ticipation in the Rural Health Care Program, 
pursuant to section 503(b) of the Communica-
tions Act of 1934 (47 U.S.C. 503(b)). 
(C) REQUIRED REPAYMENT.—In the case 
of an eligible service provider that receives 
funding through the Rural Health Care Pro-
gram pursuant to this paragraph to which such 
provider is not entitled, the Commission shall 
require such provider to repay such funds. 
(2) DELAY OF IMPLEMENTATION SCHEDULE.— 
The Commission shall— 
(A) delay by one year the implementation 
of sections 54.604 and 54.605 of title 47, Code 
of Federal Regulations (or any successor regu-
lation), as adopted in the Report and Order in 
the matter of Promoting Telehealth in Rural 
America (FCC 19–78) that was adopted by the 
Commission on August 1, 2019; and 
(B) delay application of the new definition 
of ‘‘similar services’’ as described in paragraphs 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01257
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1258 
HR 6800 PCS
14 to 20 of such Report and Order until the 
implementation of such sections. 
(c) EFFECTIVE DATE OF REGULATIONS.—The regu-
lations required under subsection (a) shall take effect on 
the date on which such regulations are promulgated. 
(d) TERMINATION OF REGULATIONS.—Except to the 
extent that the Commission determines that some or all 
of the regulations promulgated under subsection (a) 
should remain in effect (excluding any regulation promul-
gated under paragraph (1) of such subsection), such regu-
lations shall terminate on the later of— 
(1) the earlier of— 
(A) the date that is 60 days after the ter-
mination of the declaration, or any renewal 
thereof, of the public health emergency pursu-
ant to section 319 of the Public Health Service 
Act (42 U.S.C. 247d) as a result of confirmed 
cases of COVID–19; and 
(B) the date of the expiration of the appro-
priation in subsection (f)(2); and 
(2) the date that is 9 months after the date of 
the enactment of this Act. 
(e) EXEMPTIONS.— 
(1) NOTICE AND COMMENT RULEMAKING RE-
QUIREMENTS.—Subsections (b), (c), and (d) of sec-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01258
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1259 
HR 6800 PCS
tion 553 of title 5, United States Code, shall not 
apply to a regulation promulgated under subsection 
(a) or a rulemaking to promulgate such a regulation. 
(2) PAPERWORK
REDUCTION
ACT
REQUIRE-
MENTS.—A collection of information conducted or 
sponsored under the regulations required by sub-
section (a), or under section 254 of the Communica-
tions Act of 1934 (47 U.S.C. 254) in connection 
with universal service support provided under such 
regulations, shall not constitute a collection of infor-
mation for the purposes of subchapter I of chapter 
35 of title 44, United States Code (commonly re-
ferred to as the Paperwork Reduction Act). 
(f) 
EMERGENCY
RURAL
HEALTH
CARE 
CONNECTIVITY FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the Emergency Rural Health Care 
Connectivity Fund. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Emer-
gency 
Rural 
Health 
Care 
Connectivity 
Fund 
$2,000,000,000 for fiscal year 2020, to remain 
available through fiscal year 2022. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01259
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1260 
HR 6800 PCS
(3) USE OF FUNDS.—Amounts in the Emer-
gency Rural Health Care Connectivity Fund shall be 
available to the Commission to carry out the Rural 
Health Care Program, as modified by the regula-
tions promulgated under subsection (a). 
(4) RELATIONSHIP
TO
UNIVERSAL
SERVICE 
CONTRIBUTIONS.—Support provided under the regu-
lations required by paragraphs (1) through (3) of 
subsection (a) shall be provided from amounts made 
available under paragraph (3) of this subsection and 
not from contributions under section 254(d) of the 
Communications Act of 1934 (47 U.S.C. 254(d)). 
Such support shall be in addition to, and not in re-
placement of, funds authorized by the Commission 
for the Rural Health Care Program as of the date 
of the enactment of this Act from contributions 
under section 254(d) of the Communications Act of 
1934 (47 U.S.C. 254(d)). 
(g) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(2) ELIGIBLE EQUIPMENT.—The term ‘‘eligible 
equipment’’ means the equipment described in sec-
tion 54.613 of title 47, Code of Federal Regulations 
(or any successor regulation). 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01260
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1261 
HR 6800 PCS
(3) ELIGIBLE SERVICE PROVIDER.—The term 
‘‘eligible service provider’’ means a provider de-
scribed in section 54.608 of title 47, Code of Federal 
Regulations (or any successor regulation). 
(4) FUNDING YEAR.—The term ‘‘funding year’’ 
has the meaning given such term in section 
54.600(a) of title 47, Code of Federal Regulations 
(or any successor regulation). 
(5) HEALTH
CARE
PROVIDER.—The term 
‘‘health care provider’’ has the meaning given such 
term in section 54.600(b) of title 47, Code of Fed-
eral Regulations (or any successor regulation). 
(6) HEALTHCARE CONNECT FUND PROGRAM.— 
The term ‘‘Healthcare Connect Fund Program’’ has 
the meaning given such term in section 54.602(b) of 
title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
(7) MULTI-YEAR
COMMITMENTS.—The term 
‘‘multi-year commitments’’ means the commitments 
described in section 54.620(c) of title 47, Code of 
Federal Regulations (or any successor regulation). 
(8) RURAL AREA.—The term ‘‘rural area’’ has 
the meaning given such term in section 54.600(e) of 
title 47, Code of Federal Regulations (or any suc-
cessor regulation). 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01261
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1263 
HR 6800 PCS
SEC. 140002. COMPOSITE PLANS. 
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Title I of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1001 et seq.) is amended by adding at the end the 
following: 
‘‘PART 8—COMPOSITE PLANS AND LEGACY 
PLANS 
‘‘SEC. 801. COMPOSITE PLAN DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this Act, the 
term ‘composite plan’ means a pension plan— 
‘‘(1) which is a multiemployer plan that is nei-
ther a defined benefit plan nor a defined contribu-
tion plan; 
‘‘(2) the terms of which provide that the plan 
is a composite plan for purposes of this title with re-
spect to which not more than one multiemployer de-
fined benefit plan is treated as a legacy plan within 
the meaning of section 805, unless there is more 
than one legacy plan following a merger of composite 
plans under section 806; 
‘‘(3) which provides systematically for the pay-
ment of benefits— 
‘‘(A) objectively calculated pursuant to a 
formula enumerated in the plan document with 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01263
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1264 
HR 6800 PCS
respect to plan participants after retirement, 
for life; and 
‘‘(B) in the form of life annuities, except 
for benefits which under section 203(e) may be 
immediately distributed without the consent of 
the participant; 
‘‘(4) for which the plan contributions for the 
first plan year are at least 120 percent of the nor-
mal cost for the plan year; 
‘‘(5) which requires— 
‘‘(A) an annual valuation of the liability of 
the plan as of a date within the plan year to 
which the valuation refers or within one month 
prior to the beginning of such year; 
‘‘(B) an annual actuarial determination of 
the plan’s current funded ratio and projected 
funded ratio under section 802(a); 
‘‘(C) corrective action through a realign-
ment program pursuant to section 803 when-
ever the plan’s projected funded ratio is below 
120 percent for the plan year; and 
‘‘(D) an annual notification to each partici-
pant describing the participant’s benefits under 
the plan and explaining that such benefits may 
be subject to reduction under a realignment 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01264
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1265 
HR 6800 PCS
program pursuant to section 803 based on the 
plan’s funded status in future plan years; and 
‘‘(6) the board of trustees of which includes at 
least one retiree or beneficiary in pay status during 
each plan year following the first plan year in which 
at least 5 percent of the participants in the plan are 
retirees or beneficiaries in pay status. 
‘‘(b) TRANSITION FROM
A MULTIEMPLOYER DE-
FINED BENEFIT PLAN.— 
‘‘(1) IN GENERAL.—The plan sponsor of a de-
fined benefit plan that is a multiemployer plan may, 
subject to paragraph (2), amend the plan to incor-
porate the features of a composite plan as a compo-
nent of the multiemployer plan separate from the 
defined benefit plan component, except in the case of 
a defined benefit plan for which the plan actuary has 
certified under section 305(b)(3) that the plan is or 
will be in critical status for the plan year in which 
such amendment would become effective or for any 
of the succeeding 5 plan years. 
‘‘(2) REQUIREMENTS.—Any amendment pursu-
ant to paragraph (1) to incorporate the features of 
a composite plan as a component of a multiemployer 
plan shall— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01265
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1266 
HR 6800 PCS
‘‘(A) apply with respect to all collective 
bargaining agreements providing for contribu-
tions to the multiemployer plan on or after the 
effective date of the amendment; 
‘‘(B) apply with respect to all participants 
in the multiemployer plan for whom contribu-
tions are made to the multiemployer plan on or 
after the effective date of the amendment; 
‘‘(C) specify that the effective date of the 
amendment is— 
‘‘(i) the first day of a specified plan 
year following the date of the adoption of 
the amendment, except that the plan spon-
sor may alternatively provide for a sepa-
rate effective date with respect to each col-
lective bargaining agreement under which 
contributions to the multiemployer plan 
are required, which shall occur on the first 
day of the first plan year beginning after 
the termination, or if earlier, the re-open-
ing, of each such agreement, or such ear-
lier date as the parties to the agreement 
and the plan sponsor of the multiemployer 
plan shall agree to; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01266
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1267 
HR 6800 PCS
‘‘(ii) not later than the first day of the 
fifth plan year beginning on or after the 
date of the adoption of the amendment; 
‘‘(D) specify that, as of the amendment’s 
effective date, no further benefits shall accrue 
under the defined benefit component of the 
multiemployer plan; and 
‘‘(E) specify that, as of the amendment’s 
effective date, the plan sponsor of the multiem-
ployer plan shall be the plan sponsor of both 
the composite plan component and the defined 
benefit plan component of the plan. 
‘‘(3) SPECIAL RULES.—If a multiemployer plan 
is amended pursuant to paragraph (1)— 
‘‘(A) the requirements of this title and title 
IV shall be applied to the composite plan com-
ponent and the defined benefit plan component 
of the multiemployer plan as if each such com-
ponent were maintained as a separate plan; and 
‘‘(B) the assets of the composite plan com-
ponent and the defined benefit plan component 
of the plan shall be held in a single trust form-
ing part of the plan under which the trust in-
strument expressly provides— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01267
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1268 
HR 6800 PCS
‘‘(i) for separate accounts (and appro-
priate records) to be maintained to reflect 
the interest which each of the plan compo-
nents has in the trust, including separate 
accounting for additions to the trust for 
the benefit of each plan component, dis-
bursements made from each plan compo-
nent’s account in the trust, investment ex-
perience of the trust allocable to that ac-
count, and administrative expenses (wheth-
er direct expenses or shared expenses allo-
cated proportionally), and permits, but 
does not require, the pooling of some or all 
of the assets of the two plan components 
for investment purposes; and 
‘‘(ii) that the assets of each of the two 
plan components shall be held, invested, 
reinvested, managed, administered and dis-
tributed for the exclusive benefit of the 
participants and beneficiaries of each such 
plan component, and in no event shall the 
assets of one of the plan components be 
available to pay benefits due under the 
other plan component. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01268
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1269 
HR 6800 PCS
‘‘(4) NOT
A
TERMINATION
EVENT.—Notwith-
standing section 4041A, an amendment pursuant to 
paragraph (1) to incorporate the features of a com-
posite plan as a component of a multiemployer plan 
does not constitute termination of the multiemployer 
plan. 
‘‘(5) NOTICE TO THE SECRETARY.— 
‘‘(A) NOTICE.—The plan sponsor of a 
composite plan shall provide notice to the Sec-
retary of the intent to establish the composite 
plan (or, in the case of a composite plan incor-
porated as a component of a multiemployer 
plan as described in paragraph (1), the intent 
to amend the multiemployer plan to incorporate 
such composite plan) at least 30 days prior to 
the effective date of such establishment or 
amendment. 
‘‘(B) CERTIFICATION.—In the case of a 
composite plan incorporated as a component of 
a multiemployer plan as described in paragraph 
(1), such notice shall include a certification by 
the plan actuary under section 305(b)(3) that 
the effective date of the amendment occurs in 
a plan year for which the multiemployer plan is 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01269
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1270 
HR 6800 PCS
not in critical status for that plan year and any 
of the succeeding 5 plan years. 
‘‘(6) REFERENCES TO COMPOSITE PLAN COM-
PONENT.—As used in this part, the term ‘composite 
plan’ includes a composite plan component added to 
a defined benefit plan pursuant to paragraph (1). 
‘‘(7) RULE
OF
CONSTRUCTION.—Paragraph 
(2)(A) shall not be construed as preventing the plan 
sponsor of a multiemployer plan from adopting an 
amendment pursuant to paragraph (1) because some 
collective bargaining agreements are amended to 
cease any covered employer’s obligation to contribute 
to the multiemployer plan before or after the plan 
amendment is effective. Paragraph (2)(B) shall not 
be construed as preventing the plan sponsor of a 
multiemployer plan from adopting an amendment 
pursuant to paragraph (1) because some partici-
pants cease to have contributions made to the multi-
employer plan on their behalf before or after the 
plan amendment is effective. 
‘‘(c) COORDINATION WITH FUNDING RULES.—Ex-
cept as otherwise provided in this title, sections 302, 304, 
and 305 shall not apply to a composite plan. 
‘‘(d) TREATMENT OF A COMPOSITE PLAN.—For pur-
poses of this Act (other than sections 302 and 4245), a 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01270
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1271 
HR 6800 PCS
composite plan shall be treated as if it were a defined ben-
efit plan unless a different treatment is provided for under 
applicable law. 
‘‘SEC. 802. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS. 
‘‘(a) CERTIFICATION OF FUNDED RATIOS.— 
‘‘(1) IN
GENERAL.—Not later than the one- 
hundred twentieth day of each plan year of a com-
posite plan, the plan actuary of the composite plan 
shall certify to the Secretary, the Secretary of the 
Treasury, and the plan sponsor the plan’s current 
funded ratio and projected funded ratio for the plan 
year. 
‘‘(2) DETERMINATION
OF
CURRENT
FUNDED 
RATIO AND PROJECTED FUNDED RATIO.—For pur-
poses of this section: 
‘‘(A) CURRENT FUNDED RATIO.—The cur-
rent funded ratio is the ratio (expressed as a 
percentage) of— 
‘‘(i) the value of the plan’s assets as 
of the first day of the plan year; to 
‘‘(ii) the plan actuary’s best estimate 
of the present value of the plan liabilities 
as of the first day of the plan year. 
‘‘(B) PROJECTED
FUNDED
RATIO.—The 
projected funded ratio is the current funded 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01271
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1272 
HR 6800 PCS
ratio projected to the first day of the fifteenth 
plan year following the plan year for which the 
determination is being made. 
‘‘(3) CONSIDERATION OF CONTRIBUTION RATE 
INCREASES.—For purposes of projections under this 
subsection, the plan sponsor may anticipate con-
tribution rate increases beyond the term of the cur-
rent collective bargaining agreement and any agreed- 
to supplements, up to a maximum of 2.5 percent per 
year, compounded annually, unless it would be un-
reasonable under the circumstances to assume that 
contributions would increase by that amount. 
‘‘(b) ACTUARIAL ASSUMPTIONS
AND METHODS.— 
For purposes of this part: 
‘‘(1) IN GENERAL.—All costs, liabilities, rates 
of interest and other factors under the plan shall be 
determined for a plan year on the basis of actuarial 
assumptions and methods— 
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations); 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01272
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1273 
HR 6800 PCS
‘‘(C) with respect to which any change 
from the actuarial assumptions and methods 
used in the previous plan year shall be certified 
by the plan actuary and the actuarial rationale 
for such change provided in the annual report 
required by section 103. 
‘‘(2) FAIR MARKET VALUE OF ASSETS.—The 
value of the plan’s assets shall be taken into account 
on the basis of their fair market value. 
‘‘(3) DETERMINATION OF NORMAL COST AND 
PLAN LIABILITIES.—A plan’s normal cost and liabil-
ities shall be based on the most recent actuarial 
valuation required under section 801(a)(5)(A) and 
the unit credit funding method. 
‘‘(4) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—Any contributions for a plan year 
made by an employer after the last day of such plan 
year, but not later than two and one-half months 
after such day, shall be deemed to have been made 
on such last day. For purposes of this paragraph, 
such two and one-half month period may be ex-
tended for not more than six months under regula-
tions prescribed by the Secretary of the Treasury. 
‘‘(5) ADDITIONAL ACTUARIAL ASSUMPTIONS.— 
Except where otherwise provided in this part, the 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01273
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1274 
HR 6800 PCS
provisions of section 305(b)(3)(B) shall apply to any 
determination or projection under this part. 
‘‘SEC. 803. REALIGNMENT PROGRAM. 
‘‘(a) REALIGNMENT PROGRAM.— 
‘‘(1) ADOPTION.—In any case in which the plan 
actuary certifies under section 802(a) that the plan’s 
projected funded ratio is below 120 percent for the 
plan year, the plan sponsor shall adopt a realign-
ment program under paragraph (2) not later than 
210 days after the due date of the certification re-
quired under such section 802(a). The plan sponsor 
shall adopt an updated realignment program for 
each succeeding plan year for which a certification 
described in the preceding sentence is made. 
‘‘(2) CONTENT OF REALIGNMENT PROGRAM.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram adopted under this paragraph is a written 
program which consists of all reasonable meas-
ures, including options or a range of options to 
be undertaken by the plan sponsor or proposed 
to the bargaining parties, formulated, based on 
reasonably anticipated experience and reason-
able actuarial assumptions, to enable the plan 
to achieve a projected funded ratio of at least 
120 percent for the following plan year. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01274
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1275 
HR 6800 PCS
‘‘(B) INITIAL PROGRAM ELEMENTS.—Rea-
sonable measures under a realignment program 
described in subparagraph (A) may include any 
of the following: 
‘‘(i) Proposed contribution increases. 
‘‘(ii) A reduction in the rate of future 
benefit accruals, so long as the resulting 
rate is not less than 1 percent of the con-
tributions on which benefits are based as 
of the start of the plan year (or the equiva-
lent standard accrual rate as described in 
section 305(e)(6)). 
‘‘(iii) A modification or elimination of 
adjustable benefits of participants that are 
not in pay status before the date of the no-
tice required under subsection (b)(1). 
‘‘(iv) Any other lawfully available 
measures not specifically described in this 
subparagraph or subparagraph (C) or (D) 
that the plan sponsor determines are rea-
sonable. 
‘‘(C) ADDITIONAL PROGRAM ELEMENTS.— 
If the plan sponsor has determined that all rea-
sonable measures available under subparagraph 
(B) will not enable the plan to achieve a pro-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01275
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1277 
HR 6800 PCS
provided that such reductions shall be equitably 
distributed across the participant and bene-
ficiary population, taking into account factors, 
with respect to participants and beneficiaries 
and their benefits, that may include one or 
more of the factors listed in subclauses (I) 
through (X) of section 305(e)(9)(D)(vi), to the 
extent necessary to enable the plan to achieve 
a projected funded ratio of at least 120 percent 
for the following plan year, or at the election of 
the plan sponsor, a projected funded ratio of at 
least 100 percent for the following plan year 
and a current funded ratio of at least 90 per-
cent. 
‘‘(3) ADJUSTABLE
BENEFIT
DEFINED.—For 
purposes of this part, the term ‘adjustable benefit’ 
means— 
‘‘(A) benefits, rights, and features under 
the plan, including post-retirement death bene-
fits, 60-month guarantees, disability benefits 
not yet in pay status, and similar benefits; 
‘‘(B) any early retirement benefit or retire-
ment-type subsidy (within the meaning of sec-
tion 204(g)(2)(A)) and any benefit payment op-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01277
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1278 
HR 6800 PCS
tion (other than the qualified joint and survivor 
annuity); and 
‘‘(C) benefit increases that were adopted 
(or, if later, took effect) less than 60 months 
before the first day such realignment program 
took effect. 
‘‘(4) CORE BENEFIT DEFINED.—For purposes 
of this part, the term ‘core benefit’ means a partici-
pant’s accrued benefit payable in the normal form of 
an annuity commencing at normal retirement age, 
determined without regard to— 
‘‘(A) any early retirement benefits, retire-
ment-type subsidies, or other benefits, rights, or 
features that may be associated with that ben-
efit; and 
‘‘(B) any cost-of-living adjustments or ben-
efit increases effective after the date of retire-
ment. 
‘‘(5) COORDINATION WITH CONTRIBUTION IN-
CREASES.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram may provide that some or all of the ben-
efit modifications described in the program will 
only take effect if the bargaining parties fail to 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01278
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1279 
HR 6800 PCS
agree to specified levels of increases in contribu-
tions to the plan, effective as of specified dates. 
‘‘(B) INDEPENDENT
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that are inde-
pendent of potential contribution increases, 
such changes shall take effect not later than 
180 days after the first day of the first plan 
year that begins following the adoption of the 
realignment program. 
‘‘(C) CONDITIONAL
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that take effect 
only if the bargaining parties fail to agree to 
contribution increases, such changes shall take 
effect not later than the first day of the first 
plan year beginning after the third anniversary 
of the date of adoption of the realignment pro-
gram. 
‘‘(D) REVOCATION OF CERTAIN BENEFIT 
MODIFICATIONS.—Benefit 
modifications 
de-
scribed in subparagraph (C) may be revoked, in 
whole or in part, and retroactively or prospec-
tively, when contributions to the plan are in-
creased, as specified in the realignment pro-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01279
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1280 
HR 6800 PCS
gram, including any amendments thereto. The 
preceding sentence shall not apply unless the 
contribution increases are to be effective not 
later than the fifth anniversary of the first day 
of the first plan year that begins after the 
adoption of the realignment program. 
‘‘(b) NOTICE.— 
‘‘(1) IN GENERAL.—In any case in which it is 
certified under section 802(a) that the projected 
funded ratio is less than 120 percent, the plan spon-
sor shall, not later than 30 days after the date of 
the certification, provide notification of the current 
and projected funded ratios to the participants and 
beneficiaries, the bargaining parties, and the Sec-
retary. Such notice shall include— 
‘‘(A) an explanation that contribution rate 
increases or benefit reductions may be nec-
essary; 
‘‘(B) a description of the types of benefits 
that might be reduced; and 
‘‘(C) an estimate of the contribution in-
creases and benefit reductions that may be nec-
essary to achieve a projected funded ratio of 
120 percent. 
‘‘(2) NOTICE OF BENEFIT MODIFICATIONS.— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01280
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1281 
HR 6800 PCS
‘‘(A) IN GENERAL.—No modifications may 
be made that reduce the rate of future benefit 
accrual or that reduce core benefits or adjust-
able benefits unless notice of such reduction has 
been given at least 180 days before the general 
effective date of such reduction for all partici-
pants and beneficiaries to— 
‘‘(i) plan participants and bene-
ficiaries; 
‘‘(ii) each employer who has an obliga-
tion to contribute to the composite plan; 
and 
‘‘(iii) 
each 
employee 
organization 
which, for purposes of collective bar-
gaining, represents plan participants em-
ployed by such employers. 
‘‘(B) CONTENT
OF
NOTICE.—The notice 
under subparagraph (A) shall contain— 
‘‘(i) sufficient information to enable 
participants and beneficiaries to under-
stand the effect of any reduction on their 
benefits, including an illustration of any 
affected benefit or subsidy, on an annual 
or monthly basis that a participant or ben-
eficiary would otherwise have been eligible 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01281
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1282 
HR 6800 PCS
for as of the general effective date de-
scribed in subparagraph (A); and 
‘‘(ii) information as to the rights and 
remedies of plan participants and bene-
ficiaries as well as how to contact the De-
partment of Labor for further information 
and assistance, where appropriate. 
‘‘(C) FORM
AND
MANNER.—Any notice 
under subparagraph (A)— 
‘‘(i) shall be provided in a form and 
manner prescribed in regulations of the 
Secretary of Labor; 
‘‘(ii) shall be written in a manner so 
as to be understood by the average plan 
participant. 
‘‘(3) MODEL NOTICES.—The Secretary shall— 
‘‘(A) prescribe model notices that the plan 
sponsor of a composite plan may use to satisfy 
the notice requirements under this subsection; 
and 
‘‘(B) by regulation enumerate any details 
related to the elements listed in paragraph (1) 
that any notice under this subsection must in-
clude. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01282
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1283 
HR 6800 PCS
‘‘(4) DELIVERY
METHOD.—Any notice under 
this part shall be provided in writing and may also 
be provided in electronic form to the extent that the 
form is reasonably accessible to persons to whom the 
notice is provided. 
‘‘SEC. 804. LIMITATION ON INCREASING BENEFITS. 
‘‘(a) LEVEL OF CURRENT FUNDED RATIOS.—Except 
as provided in subsections (c), (d), and (e), no plan 
amendment increasing benefits or establishing new bene-
fits under a composite plan may be adopted for a plan 
year unless— 
‘‘(1) the plan’s current funded ratio is at least 
110 percent (without regard to the benefit increase 
or new benefits); 
‘‘(2) taking the benefit increase or new benefits 
into account, the current funded ratio is at least 100 
percent and the projected funded ratio for the cur-
rent plan year is at least 120 percent; 
‘‘(3) in any case in which, after taking the ben-
efit increase or new benefits into account, the cur-
rent funded ratio is less than 140 percent and the 
projected funded ratio is less than 140 percent, the 
benefit increase or new benefits are projected by the 
plan actuary to increase the present value of the 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01283
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1284 
HR 6800 PCS
plan’s liabilities for the plan year by not more than 
3 percent; and 
‘‘(4) expected contributions for the current plan 
year are at least 120 percent of normal cost for the 
plan year, determined using the unit credit funding 
method and treating the benefit increase or new ben-
efits as in effect for the entire plan year. 
‘‘(b) ADDITIONAL REQUIREMENTS WHERE CORE 
BENEFITS REDUCED.—If a plan has been amended to re-
duce core benefits pursuant to a realignment program 
under section 803(a)(2)(D), such plan may not be subse-
quently amended to increase core benefits unless the 
amendment— 
‘‘(1) increases the level of future benefit pay-
ments only; and 
‘‘(2) provides for an equitable distribution of 
benefit increases across the participant and bene-
ficiary population, taking into account the extent to 
which the benefits of participants were previously re-
duced pursuant to such realignment program. 
‘‘(c) EXCEPTION TO COMPLY WITH APPLICABLE 
LAW.—Subsection (a) shall not apply in connection with 
a plan amendment if the amendment is required as a con-
dition of qualification under part I of subchapter D of 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01284
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1285 
HR 6800 PCS
chapter 1 of the Internal Revenue Code of 1986 or to com-
ply with other applicable law. 
‘‘(d) EXCEPTION WHERE MAXIMUM DEDUCTIBLE 
LIMIT APPLIES.—Subsection (a) shall not apply in con-
nection with a plan amendment if and to the extent that 
contributions to the composite plan would not be deduct-
ible for the plan year under section 404(a)(1)(E) of the 
Internal Revenue Code of 1986 if the plan amendment is 
not adopted. 
‘‘(e) EXCEPTION FOR CERTAIN BENEFIT MODIFICA-
TIONS.—Subsection (a) shall not apply in connection with 
a plan amendment under section 803(a)(5)(C), regarding 
conditional benefit modifications. 
‘‘(f) TREATMENT OF PLAN AMENDMENTS.—For pur-
poses of this section— 
‘‘(1) if two or more plan amendments increas-
ing benefits or establishing new benefits are adopted 
in a plan year, such amendments shall be treated as 
a single amendment adopted on the last day of the 
plan year; 
‘‘(2) all benefit increases and new benefits 
adopted in a single amendment are treated as a sin-
gle benefit increase, irrespective of whether the in-
creases and new benefits take effect in more than 
one plan year; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01285
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1286 
HR 6800 PCS
‘‘(3) increases in contributions or decreases in 
plan liabilities which are scheduled to take effect in 
future plan years may be taken into account in con-
nection with a plan amendment if they have been 
agreed to in writing or otherwise formalized by the 
date the plan amendment is adopted. 
‘‘SEC. 805. COMPOSITE PLAN RESTRICTIONS TO PRESERVE 
LEGACY PLAN FUNDING. 
‘‘(a) TREATMENT AS A LEGACY PLAN.— 
‘‘(1) IN GENERAL.—For purposes of this part 
and parts 2 and 3, a defined benefit plan shall be 
treated as a legacy plan with respect to the com-
posite plan under which the employees who were eli-
gible to accrue a benefit under the defined benefit 
plan become eligible to accrue a benefit under such 
composite plan. 
‘‘(2) COMPONENT
PLANS.—In any case in 
which a defined benefit plan is amended to add a 
composite plan component pursuant to section 
801(b), paragraph (1) shall be applied by sub-
stituting ‘defined benefit component’ for ‘defined 
benefit plan’ and ‘composite plan component’ for 
‘composite plan’. 
‘‘(3) ELIGIBLE TO ACCRUE A BENEFIT.—For 
purposes of paragraph (1), an employee is consid-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01286
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1287 
HR 6800 PCS
ered eligible to accrue a benefit under a composite 
plan as of the first day in which the employee com-
pletes an hour of service under a collective bar-
gaining agreement that provides for contributions to 
and accruals under the composite plan in lieu of ac-
cruals under the legacy plan. 
‘‘(4) COLLECTIVE BARGAINING AGREEMENT.— 
As used in this part, the term ‘collective bargaining 
agreement’ includes any agreement under which an 
employer has an obligation to contribute to a plan. 
‘‘(5) OTHER TERMS.—Any term used in this 
part which is not defined in this part and which is 
also used in section 305 shall have the same mean-
ing provided such term in such section. 
‘‘(b) RESTRICTIONS ON ACCEPTANCE BY COMPOSITE 
PLAN OF AGREEMENTS AND CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
posite plan shall not accept or recognize a collective 
bargaining agreement (or any modification to such 
agreement), and no contributions may be accepted 
and no benefits may be accrued or otherwise earned 
under the agreement— 
‘‘(A) in any case in which the plan actuary 
of any defined benefit plan that would be treat-
ed as a legacy plan with respect to such com-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01287
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1288 
HR 6800 PCS
posite 
plan 
has 
certified 
under 
section 
305(b)(3) that such defined benefit plan is or 
will be in critical status for the plan year in 
which such agreement would take effect or for 
any of the succeeding 5 plan years; and 
‘‘(B) unless the agreement requires each 
employer who is a party to such agreement, in-
cluding employers whose employees are not par-
ticipants in the legacy plan, to provide contribu-
tions to the legacy plan with respect to such 
composite plan in a manner that satisfies the 
transition contribution requirements of sub-
section (d). 
‘‘(2) NOTICE.—Not later than 30 days after a 
determination by a plan sponsor of a composite plan 
that an agreement fails to satisfy the requirements 
described in paragraph (1), the plan sponsor shall 
provide notification of such failure and the reasons 
for such determination— 
‘‘(A) to the parties to the agreement; 
‘‘(B) to active participants of the com-
posite plan who have ceased to accrue or other-
wise earn benefits with respect to service with 
an employer pursuant to paragraph (1); and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01288
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1289 
HR 6800 PCS
‘‘(C) to the Secretary, the Secretary of the 
Treasury, and the Pension Benefit Guaranty 
Corporation. 
‘‘(3) LIMITATION ON RETROACTIVE EFFECT.— 
This subsection shall not apply to benefits accrued 
before the date on which notice is provided under 
paragraph (2). 
‘‘(c) RESTRICTION
ON
ACCRUAL
OF
BENEFITS 
UNDER A COMPOSITE PLAN.— 
‘‘(1) IN GENERAL.—In any case in which an 
employer, under a collective bargaining agreement 
entered into after the date of enactment of the Giv-
ing Retirement Options to Workers Act of 2020, 
ceases to have an obligation to contribute to a multi-
employer defined benefit plan, no employees em-
ployed by the employer may accrue or otherwise earn 
benefits under any composite plan, with respect to 
service with that employer, for a 60-month period 
beginning on the date on which the employer entered 
into such collective bargaining agreement. 
‘‘(2) NOTICE OF CESSATION OF OBLIGATION.— 
Within 30 days of determining that an employer has 
ceased to have an obligation to contribute to a leg-
acy plan with respect to employees employed by an 
employer that is or will be contributing to a com-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01289
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1290 
HR 6800 PCS
posite plan with respect to service of such employees, 
the plan sponsor of the legacy plan shall notify the 
plan sponsor of the composite plan of that cessation. 
‘‘(3) NOTICE OF CESSATION OF ACCRUALS.— 
Not later than 30 days after determining that an 
employer has ceased to have an obligation to con-
tribute to a legacy plan, the plan sponsor of the 
composite plan shall notify the bargaining parties, 
the active participants affected by the cessation of 
accruals, the Secretary, the Secretary of the Treas-
ury, and the Pension Benefit Guaranty Corporation 
of the cessation of accruals, the period during which 
such cessation is in effect, and the reasons therefor. 
‘‘(4) LIMITATION ON RETROACTIVE EFFECT.— 
This subsection shall not apply to benefits accrued 
before the date on which notice is provided under 
paragraph (3). 
‘‘(d) TRANSITION CONTRIBUTION REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—A collective bargaining 
agreement satisfies the transition contribution re-
quirements of this subsection if the agreement— 
‘‘(A) authorizes payment of contributions 
to a legacy plan at a rate or rates equal to or 
greater than the transition contribution rate es-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01290
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1291 
HR 6800 PCS
tablished by the legacy plan under paragraph 
(2); and 
‘‘(B) does not provide for— 
‘‘(i) a suspension of contributions to 
the legacy plan with respect to any period 
of service; or 
‘‘(ii) any new direct or indirect exclu-
sion of younger or newly hired employees 
of the employer from being taken into ac-
count in determining contributions owed to 
the legacy plan. 
‘‘(2) TRANSITION CONTRIBUTION RATE.— 
‘‘(A) IN
GENERAL.—The transition con-
tribution rate for a plan year is the contribution 
rate that, as certified by the actuary of the leg-
acy plan in accordance with the principles in 
section 305(b)(3)(B), is reasonably expected to 
be adequate— 
‘‘(i) to fund the normal cost for the 
plan year; 
‘‘(ii) to amortize the plan’s unfunded 
liabilities in level annual installments over 
25 years, beginning with the plan year in 
which the transition contribution rate is 
first established; and 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01291
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1292 
HR 6800 PCS
‘‘(iii) to amortize any subsequent 
changes in the legacy plan’s unfunded li-
ability due to experience gains or losses 
(including investment gains or losses, gains 
or losses due to contributions greater or 
less than the contributions made under the 
prior transition contribution rate, and 
other actuarial gains or losses), changes in 
actuarial assumptions, changes to the leg-
acy plan’s benefits, or changes in funding 
method over a period of 15 plan years be-
ginning with the plan year in which such 
change in unfunded liability is incurred. 
The transition contribution rate for any plan 
year may not be less than the transition con-
tribution rate for the plan year in which such 
rate is first established. 
‘‘(B) MULTIPLE RATES.—If different rates 
of contribution are payable to the legacy plan 
by different employers or for different classes of 
employees, the certification shall specify a tran-
sition contribution rate for each such employer. 
‘‘(C) RATE APPLICABLE TO EMPLOYER.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided by clause (ii), the transition con-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01292
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1293 
HR 6800 PCS
tribution rate applicable to an employer for 
a plan year is the rate in effect for the 
plan year of the legacy plan that com-
mences on or after 180 days before the 
earlier of— 
‘‘(I) the effective date of the col-
lective bargaining agreement pursuant 
to which the employer contributes to 
the legacy plan; or 
‘‘(II) 5 years after the last plan 
year for which the transition contribu-
tion rate applicable to the employer 
was established or updated. 
‘‘(ii) 
EXCEPTION.—The 
transition 
contribution rate applicable to an employer 
for the first plan year beginning on or 
after the commencement of the employer’s 
obligation to contribute to the composite 
plan is the rate in effect for the plan year 
of the legacy plan that commences on or 
after 180 days before such first plan year. 
‘‘(D) EFFECT OF LEGACY PLAN FINANCIAL 
CIRCUMSTANCES.—If the plan actuary of the 
legacy plan has certified under section 305 that 
the plan is in endangered or critical status for 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01293
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1294 
HR 6800 PCS
a plan year, the transition contribution rate for 
the following plan year is the rate determined 
with respect to the employer under the legacy 
plan’s funding improvement or rehabilitation 
plan under section 305, if greater than the rate 
otherwise determined, but in no event greater 
than 75 percent of the sum of the contribution 
rates applicable to the legacy plan and the com-
posite plan for the plan year. 
‘‘(E) OTHER
ACTUARIAL
ASSUMPTIONS 
AND
METHODS.—Except as provided in sub-
paragraph (A), the determination of the transi-
tion contribution rate for a plan year shall be 
based on actuarial assumptions and methods 
consistent with the minimum funding deter-
minations made under section 304 (or, if appli-
cable, section 305) with respect to the legacy 
plan for the plan year. 
‘‘(F) ADJUSTMENTS IN RATE.—The plan 
sponsor of a legacy plan from time to time may 
adjust the transition contribution rate or rates 
applicable to an employer under this paragraph 
by increasing some rates and decreasing others 
if the actuary certifies that such adjusted rates 
in combination will produce projected contribu-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01294
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1295 
HR 6800 PCS
tion income for the plan year beginning on or 
after the date of certification that is not less 
than would be produced by the transition con-
tribution rates in effect at the time of the cer-
tification. 
‘‘(G) NOTICE OF TRANSITION CONTRIBU-
TION RATE.—The plan sponsor of a legacy plan 
shall provide notice to the parties to collective 
bargaining agreements pursuant to which con-
tributions are made to the legacy plan of 
changes to the transition contribution rate re-
quirements at least 30 days before the begin-
ning of the plan year for which the rate is effec-
tive. 
‘‘(H) NOTICE TO COMPOSITE PLAN SPON-
SOR.—Not later than 30 days after a deter-
mination by the plan sponsor of a legacy plan 
that a collective bargaining agreement provides 
for a rate of contributions that is below the 
transition contribution rate applicable to one or 
more employers that are parties to the collective 
bargaining agreement, the plan sponsor of the 
legacy plan shall notify the plan sponsor of any 
composite plan under which employees of such 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01295
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1296 
HR 6800 PCS
employer would otherwise be eligible to accrue 
a benefit. 
‘‘(3) CORRECTION PROCEDURES.—Pursuant to 
standards prescribed by the Secretary, the plan 
sponsor of a composite plan shall adopt rules and 
procedures that give the parties to the collective bar-
gaining agreement notice of the failure of such 
agreement to satisfy the transition contribution re-
quirements of this subsection, and a reasonable op-
portunity to correct such failure, not to exceed 180 
days from the date of notice given under subsection 
(b)(2). 
‘‘(4) SUPPLEMENTAL CONTRIBUTIONS.—A col-
lective bargaining agreement may provide for supple-
mental contributions to the legacy plan for a plan 
year in excess of the transition contribution rate de-
termined under paragraph (2), regardless of whether 
the legacy plan is in endangered or critical status for 
such plan year. 
‘‘(e) NONAPPLICATION
OF COMPOSITE PLAN RE-
STRICTIONS.— 
‘‘(1) IN
GENERAL.—The provisions of sub-
sections (a), (b), and (c) shall not apply with respect 
to a collective bargaining agreement, to the extent 
the agreement, or a predecessor agreement, provides 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01296
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1297 
HR 6800 PCS
or provided for contributions to a defined benefit 
plan that is a legacy plan, as of the first day of the 
first plan year following a plan year for which the 
plan actuary certifies that the plan is fully funded, 
has been fully funded for at least three out of the 
immediately preceding 5 plan years, and is projected 
to remain fully funded for at least the following 4 
plan years. 
‘‘(2) DETERMINATION OF FULLY FUNDED.—A 
plan is fully funded for purposes of paragraph (1) 
if, as of the valuation date of the plan for a plan 
year, the value of the plan’s assets equals or exceeds 
the present value of the plan’s liabilities, determined 
in accordance with the rules prescribed by the Pen-
sion Benefit Guaranty Corporation under sections 
4219(c)(1)(D) and 4281 for multiemployer plans 
terminating by mass withdrawal, as in effect for the 
date of the determination, except the plan’s reason-
able assumption regarding the starting date of bene-
fits may be used. 
‘‘(3) OTHER
APPLICABLE
RULES.—Except as 
provided in paragraph (2), actuarial determinations 
and projections under this section shall be based on 
the rules in section 305(b)(3) and section 802(b). 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01297
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1298 
HR 6800 PCS
‘‘SEC. 806. MERGERS AND ASSET TRANSFERS OF COM-
POSITE PLANS. 
‘‘(a) IN GENERAL.—Assets and liabilities of a com-
posite plan may only be merged with, or transferred to, 
another plan if— 
‘‘(1) the other plan is a composite plan; 
‘‘(2) the plan or plans resulting from the merg-
er or transfer is a composite plan; 
‘‘(3) no participant’s accrued benefit or adjust-
able benefit is lower immediately after the trans-
action than it was immediately before the trans-
action; and 
‘‘(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. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01298
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1299 
HR 6800 PCS
‘‘(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 
805(d)(2)(B).’’. 
(2) PENALTIES.— 
(A) CIVIL ENFORCEMENT OF FAILURE TO 
COMPLY WITH REALIGNMENT PROGRAM.—Sec-
tion 502(a) of such Act (29 U.S.C. 1132(a)) is 
amended— 
(i) in paragraph (10), by striking ‘‘or’’ 
at the end; 
(ii) in paragraph (11), by striking the 
period at the end and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(12) in the case of a composite plan required 
to adopt a realignment program under section 803, 
if the plan sponsor— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01299
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1300 
HR 6800 PCS
‘‘(A) has not adopted a realignment pro-
gram under that section by the deadline estab-
lished in such section; or 
‘‘(B) fails to update or comply with the 
terms of the realignment program in accordance 
with the requirements of such section, 
by the Secretary, by an employer that has an obliga-
tion to contribute with respect to the composite plan, 
or by an employee organization that represents ac-
tive participants in the composite plan, for an order 
compelling the plan sponsor to adopt a realignment 
program, or to update or comply with the terms of 
the realignment program, in accordance with the re-
quirements of such section and the realignment pro-
gram.’’. 
(B) CIVIL PENALTIES.—Section 502(c) of 
such Act (29 U.S.C. 1132(c)) is amended— 
(i) by moving paragraphs (8), (10), 
and (12) each 2 ems to the left; 
(ii) by redesignating paragraphs (9) 
through (12) as paragraphs (12) through 
(15), respectively; and 
(iii) by inserting after paragraph (8) 
the following: 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01300
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1301 
HR 6800 PCS
‘‘(9) The Secretary may assess against any plan 
sponsor of a composite plan a civil penalty of not 
more than $1,100 per day for each violation by such 
sponsor— 
‘‘(A) of the requirement under section 
802(a) on the plan actuary to certify the plan’s 
current or projected funded ratio by the date 
specified in such subsection; or 
‘‘(B) of the requirement under section 803 
to adopt a realignment program by the deadline 
established in that section and to comply with 
its terms. 
‘‘(10)(A) The Secretary may assess against any 
plan sponsor of a composite plan a civil penalty of 
not more than $100 per day for each violation by 
such sponsor of the requirement under section 
803(b) to provide notice as described in such section, 
except that no penalty may be assessed in any case 
in which the plan sponsor exercised reasonable dili-
gence to meet the requirements of such section 
and— 
‘‘(i) the plan sponsor did not know that the 
violation existed; or 
‘‘(ii) the plan sponsor provided such notice 
during the 30-day period beginning on the first 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01301
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1302 
HR 6800 PCS
date on which the plan sponsor knew, or in ex-
ercising reasonable due diligence should have 
known, that such violation existed. 
‘‘(B) In any case in which the plan sponsor ex-
ercised reasonable diligence to meet the require-
ments of section 803(b)— 
‘‘(i) the total penalty assessed under this 
paragraph against such sponsor for a plan year 
may not exceed $500,000; and 
‘‘(ii) the Secretary may waive part or all of 
such penalty to the extent that the payment of 
such penalty would be excessive or otherwise in-
equitable relative to the violation involved. 
‘‘(11) The Secretary may assess against any 
plan sponsor of a composite plan a civil penalty of 
not more than $100 per day for each violation by 
such sponsor of the notice requirements under sec-
tions 801(b)(5) and 805(b)(2).’’. 
(3) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act (29 U.S.C. 1001 
note) is amended by inserting after the item relating 
to section 734 the following: 
‘‘PART 8—COMPOSITE PLANS AND LEGACY PLANS 
‘‘Sec. 801. Composite plan defined. 
‘‘Sec. 802. Funded ratios; actuarial assumptions. 
‘‘Sec. 803. Realignment program. 
‘‘Sec. 804. Limitation on increasing benefits. 
‘‘Sec. 805. Composite plan restrictions to preserve legacy plan funding. 
‘‘Sec. 806. Mergers and asset transfers of composite plans.’’. 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01302
Fmt 6652
Sfmt 6211
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1303 
HR 6800 PCS
(b) AMENDMENT TO THE INTERNAL REVENUE CODE 
OF 1986.— 
(1) IN GENERAL.—Part III of subchapter D of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘Subpart C—Composite Plans and Legacy Plans 
‘‘Sec. 437. Composite plan defined. 
‘‘Sec. 438. Funded ratios; actuarial assumptions. 
‘‘Sec. 439. Realignment program. 
‘‘Sec. 440. Limitation on increasing benefits. 
‘‘Sec. 440A. Composite plan restrictions to preserve legacy plan funding. 
‘‘Sec. 440B. Mergers and asset transfers of composite plans. 
‘‘SEC. 437. COMPOSITE PLAN DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this title, the 
term ‘composite plan’ means a pension plan— 
‘‘(1) which is a multiemployer plan that is nei-
ther a defined benefit plan nor a defined contribu-
tion plan, 
‘‘(2) the terms of which provide that the plan 
is a composite plan for purposes of this title with re-
spect to which not more than one multiemployer de-
fined benefit plan is treated as a legacy plan within 
the meaning of section 440A, unless there is more 
than one legacy plan following a merger of composite 
plans under section 440B, 
‘‘(3) which provides systematically for the pay-
ment of benefits— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01303
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1304 
HR 6800 PCS
‘‘(A) objectively calculated pursuant to a 
formula enumerated in the plan document with 
respect to plan participants after retirement, 
for life, and 
‘‘(B) in the form of life annuities, except 
for benefits which under section 411(a)(11) 
may be immediately distributed without the 
consent of the participant, 
‘‘(4) for which the plan contributions for the 
first plan year are at least 120 percent of the nor-
mal cost for the plan year, 
‘‘(5) which requires— 
‘‘(A) an annual valuation of the liability of 
the plan as of a date within the plan year to 
which the valuation refers or within one month 
prior to the beginning of such year, 
‘‘(B) an annual actuarial determination of 
the plan’s current funded ratio and projected 
funded ratio under section 438(a), 
‘‘(C) corrective action through a realign-
ment program pursuant to section 439 when-
ever the plan’s projected funded ratio is below 
120 percent for the plan year, and 
‘‘(D) an annual notification to each partici-
pant describing the participant’s benefits under 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01304
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1305 
HR 6800 PCS
the plan and explaining that such benefits may 
be subject to reduction under a realignment 
program pursuant to section 439 based on the 
plan’s funded status in future plan years, and 
‘‘(6) the board of trustees of which includes at 
least one retiree or beneficiary in pay status during 
each plan year following the first plan year in which 
at least 5 percent of the participants in the plan are 
retirees or beneficiaries in pay status. 
‘‘(b) TRANSITION FROM
A MULTIEMPLOYER DE-
FINED BENEFIT PLAN.— 
‘‘(1) IN GENERAL.—The plan sponsor of a de-
fined benefit plan that is a multiemployer plan may, 
subject to paragraph (2), amend the plan to incor-
porate the features of a composite plan as a compo-
nent of the multiemployer plan separate from the 
defined benefit plan component, except in the case of 
a defined benefit plan for which the plan actuary has 
certified under section 432(b)(3) that the plan is or 
will be in critical status for the plan year in which 
such amendment would become effective or for any 
of the succeeding 5 plan years. 
‘‘(2) REQUIREMENTS.—Any amendment pursu-
ant to paragraph (1) to incorporate the features of 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01305
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1306 
HR 6800 PCS
a composite plan as a component of a multiemployer 
plan shall— 
‘‘(A) apply with respect to all collective 
bargaining agreements providing for contribu-
tions to the multiemployer plan on or after the 
effective date of the amendment, 
‘‘(B) apply with respect to all participants 
in the multiemployer plan for whom contribu-
tions are made to the multiemployer plan on or 
after the effective date of the amendment, 
‘‘(C) specify that the effective date of the 
amendment is— 
‘‘(i) the first day of a specified plan 
year following the date of the adoption of 
the amendment, except that the plan spon-
sor may alternatively provide for a sepa-
rate effective date with respect to each col-
lective bargaining agreement under which 
contributions to the multiemployer plan 
are required, which shall occur on the first 
day of the first plan year beginning after 
the termination, or if earlier, the re-open-
ing, of each such agreement, or such ear-
lier date as the parties to the agreement 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01306
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1307 
HR 6800 PCS
and the plan sponsor of the multiemployer 
plan shall agree to, and 
‘‘(ii) not later than the first day of the 
fifth plan year beginning on or after the 
date of the adoption of the amendment, 
‘‘(D) specify that, as of the amendment’s 
effective date, no further benefits shall accrue 
under the defined benefit component of the 
multiemployer plan, and 
‘‘(E) specify that, as of the amendment’s 
effective date, the plan sponsor of the multiem-
ployer plan shall be the plan sponsor of both 
the composite plan component and the defined 
benefit plan component of the plan. 
‘‘(3) SPECIAL RULES.—If a multiemployer plan 
is amended pursuant to paragraph (1)— 
‘‘(A) the requirements of this title shall be 
applied to the composite plan component and 
the defined benefit plan component of the mul-
tiemployer plan as if each such component were 
maintained as a separate plan, and 
‘‘(B) the assets of the composite plan com-
ponent and the defined benefit plan component 
of the plan shall be held in a single trust form-
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01307
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1308 
HR 6800 PCS
ing part of the plan under which the trust in-
strument expressly provides— 
‘‘(i) for separate accounts (and appro-
priate records) to be maintained to reflect 
the interest which each of the plan compo-
nents has in the trust, including separate 
accounting for additions to the trust for 
the benefit of each plan component, dis-
bursements made from each plan compo-
nent’s account in the trust, investment ex-
perience of the trust allocable to that ac-
count, and administrative expenses (wheth-
er direct expenses or shared expenses allo-
cated proportionally), and permits, but 
does not require, the pooling of some or all 
of the assets of the two plan components 
for investment purposes, and 
‘‘(ii) that the assets of each of the two 
plan components shall be held, invested, 
reinvested, managed, administered and dis-
tributed for the exclusive benefit of the 
participants and beneficiaries of each such 
plan component, and in no event shall the 
assets of one of the plan components be 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01308
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1311 
HR 6800 PCS
‘‘(c) COORDINATION WITH FUNDING RULES.—Ex-
cept as otherwise provided in this title, sections 412, 431, 
and 432 shall not apply to a composite plan. 
‘‘(d) TREATMENT OF A COMPOSITE PLAN.—For pur-
poses of this title (other than sections 412 and 418E), 
a composite plan shall be treated as if it were a defined 
benefit plan unless a different treatment is provided for 
under applicable law. 
‘‘SEC. 438. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS. 
‘‘(a) CERTIFICATION OF FUNDED RATIOS.— 
‘‘(1) IN
GENERAL.—Not later than the one- 
hundred twentieth day of each plan year of a com-
posite plan, the plan actuary of the composite plan 
shall certify to the Secretary, the Secretary of 
Labor, and the plan sponsor the plan’s current fund-
ed ratio and projected funded ratio for the plan 
year. 
‘‘(2) DETERMINATION
OF
CURRENT
FUNDED 
RATIO AND PROJECTED FUNDED RATIO.—For pur-
poses of this section— 
‘‘(A) CURRENT FUNDED RATIO.—The cur-
rent funded ratio is the ratio (expressed as a 
percentage) of— 
‘‘(i) the value of the plan’s assets as 
of the first day of the plan year, to 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01311
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1312 
HR 6800 PCS
‘‘(ii) the plan actuary’s best estimate 
of the present value of the plan liabilities 
as of the first day of the plan year. 
‘‘(B) PROJECTED
FUNDED
RATIO.—The 
projected funded ratio is the current funded 
ratio projected to the first day of the fifteenth 
plan year following the plan year for which the 
determination is being made. 
‘‘(3) CONSIDERATION OF CONTRIBUTION RATE 
INCREASES.—For purposes of projections under this 
subsection, the plan sponsor may anticipate con-
tribution rate increases beyond the term of the cur-
rent collective bargaining agreement and any agreed- 
to supplements, up to a maximum of 2.5 percent per 
year, compounded annually, unless it would be un-
reasonable under the circumstances to assume that 
contributions would increase by that amount. 
‘‘(b) ACTUARIAL ASSUMPTIONS
AND METHODS.— 
For purposes of this part— 
‘‘(1) IN GENERAL.—All costs, liabilities, rates 
of interest, and other factors under the plan shall be 
determined for a plan year on the basis of actuarial 
assumptions and methods— 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01312
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1313 
HR 6800 PCS
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations), 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan, and 
‘‘(C) with respect to which any change 
from the actuarial assumptions and methods 
used in the previous plan year shall be certified 
by the plan actuary and the actuarial rationale 
for such change provided in the annual report 
required by section 6058. 
‘‘(2) FAIR MARKET VALUE OF ASSETS.—The 
value of the plan’s assets shall be taken into account 
on the basis of their fair market value. 
‘‘(3) DETERMINATION OF NORMAL COST AND 
PLAN LIABILITIES.—A plan’s normal cost and liabil-
ities shall be based on the most recent actuarial 
valuation required under section 437(a)(5)(A) and 
the unit credit funding method. 
‘‘(4) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—Any contributions for a plan year 
made by an employer after the last day of such plan 
year, but not later than two and one-half months 
after such day, shall be deemed to have been made 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01313
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1314 
HR 6800 PCS
on such last day. For purposes of this paragraph, 
such two and one-half month period may be ex-
tended for not more than six months under regula-
tions prescribed by the Secretary. 
‘‘(5) ADDITIONAL ACTUARIAL ASSUMPTIONS.— 
Except where otherwise provided in this subpart, the 
provisions of section 432(b)(3)(B) shall apply to any 
determination or projection under this subpart. 
‘‘SEC. 439. REALIGNMENT PROGRAM. 
‘‘(a) REALIGNMENT PROGRAM.— 
‘‘(1) ADOPTION.—In any case in which the plan 
actuary certifies under section 438(a) that the plan’s 
projected funded ratio is below 120 percent for the 
plan year, the plan sponsor shall adopt a realign-
ment program under paragraph (2) not later than 
210 days after the due date of the certification re-
quired under section 438(a). The plan sponsor shall 
adopt an updated realignment program for each suc-
ceeding plan year for which a certification described 
in the preceding sentence is made. 
‘‘(2) CONTENT OF REALIGNMENT PROGRAM.— 
‘‘(A) IN
GENERAL.—A realignment pro-
gram adopted under this paragraph is a written 
program which consists of all reasonable meas-
ures, including options or a range of options to 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01314
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS
1315 
HR 6800 PCS
be undertaken by the plan sponsor or proposed 
to the bargaining parties, formulated, based on 
reasonably anticipated experience and reason-
able actuarial assumptions, to enable the plan 
to achieve a projected funded ratio of at least 
120 percent for the following plan year. 
‘‘(B) INITIAL PROGRAM ELEMENTS.—Rea-
sonable measures under a realignment program 
described in subparagraph (A) may include any 
of the following: 
‘‘(i) Proposed contribution increases. 
‘‘(ii) A reduction in the rate of future 
benefit accruals, so long as the resulting 
rate shall not be less than 1 percent of the 
contributions on which benefits are based 
as of the start of the plan year (or the 
equivalent standard accrual rate as de-
scribed in section 432(e)(6)). 
‘‘(iii) A modification or elimination of 
adjustable benefits of participants that are 
not in pay status before the date of the no-
tice required under subsection (b)(1). 
‘‘(iv) Any other legally available meas-
ures not specifically described in this sub-
paragraph or subparagraph (C) or (D) 
VerDate Sep 11 2014 
22:41 Jun 02, 2020
Jkt 099200
PO 00000
Frm 01315
Fmt 6652
Sfmt 6201
E:\BILLS\H6800.PCS
H6800
pamtmann on DSKBC07HB2PROD with BILLS