1609 
of benefits, increases in benefits, or resump-
tions of suspended benefits with respect to 
participants shall also apply with respect to 
benefits of beneficiaries or alternative pay-
ees of participants. 
‘‘(v) RETIREE REPRESENTATIVE.— 
‘‘(I) IN GENERAL.—In the case of 
a plan with 10,000 or more partici-
pants, not later than 60 days prior to 
the plan sponsor submitting an appli-
cation to suspend benefits, the plan 
sponsor shall select a participant of the 
plan in pay status to act as a retiree 
representative. The retiree representa-
tive shall advocate for the interests of 
the retired and deferred vested partici-
pants and beneficiaries of the plan 
throughout the suspension approval 
process. 
‘‘(II) 
REASONABLE
EXPENSES 
FROM PLAN.—The plan shall provide 
for reasonable expenses by the retiree 
representative, 
including 
reasonable 
legal and actuarial support, commen-
1610 
surate with the plan’s size and funded 
status. 
‘‘(III) SPECIAL
RULE
RELATING 
TO
FIDUCIARY
STATUS.—Duties per-
formed pursuant to subclause (I) shall 
not be subject to section 404(a). The 
preceding sentence shall not apply to 
those duties associated with an appli-
cation to suspend benefits pursuant to 
subparagraph (G) that are performed 
by the retiree representative who is also 
a plan trustee. 
‘‘(C) CONDITIONS FOR SUSPENSIONS.—The 
plan sponsor of a plan in critical and declining 
status for a plan year may suspend benefits only 
if the following conditions are met: 
‘‘(i) Taking into account the proposed 
suspensions of benefits (and, if applicable, a 
proposed partition of the plan under section 
4233), the plan actuary certifies that the 
plan is projected to avoid insolvency within 
the meaning of section 4245, assuming the 
suspensions of benefits continue until the 
suspensions of benefits expire by their own
1611 
terms or if no such expiration date is set, 
indefinitely. 
‘‘(ii) The plan sponsor determines, in a 
written record to be maintained throughout 
the period of the benefit suspension, that the 
plan is still projected to become insolvent 
unless benefits are suspended under this 
paragraph, although all reasonable meas-
ures to avoid insolvency have been taken 
(and continue to be taken during the period 
of the benefit suspension). In its determina-
tion, the plan sponsor may take into ac-
count factors including the following: 
‘‘(I) Current and past contribu-
tion levels. 
‘‘(II) Levels of benefit accruals 
(including any prior reductions in the 
rate of benefit accruals). 
‘‘(III) Prior reductions (if any) of 
adjustable benefits. 
‘‘(IV) Prior suspensions (if any) 
of benefits under this subsection. 
‘‘(V) The impact on plan solvency 
of the subsidies and ancillary benefits 
available to active participants.
1612 
‘‘(VI) Compensation levels of ac-
tive participants relative to employees 
in the participants’ industry generally. 
‘‘(VII) Competitive and other eco-
nomic factors facing contributing em-
ployers. 
‘‘(VIII) The impact of benefit and 
contribution levels on retaining active 
participants and bargaining groups 
under the plan. 
‘‘(IX) The impact of past and an-
ticipated contribution increases under 
the plan on employer attrition and re-
tention levels. 
‘‘(X) Measures undertaken by the 
plan sponsor to retain or attract con-
tributing employers. 
‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any 
suspensions of benefits made by a plan sponsor 
pursuant to this paragraph shall be subject to 
the following limitations: 
‘‘(i) The monthly benefit of any partic-
ipant or beneficiary may not be reduced 
below 110 percent of the monthly benefit 
which is guaranteed by the Pension Benefit
1613 
Guaranty Corporation under section 4022A 
on the date of the suspension. 
‘‘(ii)(I) In the case of a participant or 
beneficiary who has attained 75 years of 
age as of the effective date of the suspension, 
not more than the applicable percentage of 
the maximum suspendable benefits of such 
participant or beneficiary may be sus-
pended under this paragraph. 
‘‘(II) For purposes of subclause (I), the 
maximum suspendable benefits of a partici-
pant or beneficiary is the portion of the 
benefits of such participant or beneficiary 
that would be suspended pursuant to this 
paragraph without regard to this clause; 
‘‘(III) For purposes of subclause (I), 
the applicable percentage is a percentage 
equal to the quotient obtained by dividing— 
‘‘(aa) the number of months dur-
ing the period beginning with the 
month after the month in which occurs 
the effective date of the suspension and 
ending with the month during which 
the participant or beneficiary attains 
the age of 80, by
1614 
‘‘(bb) 60 months. 
‘‘(iii) No benefits based on disability 
(as defined under the plan) may be sus-
pended under this paragraph. 
‘‘(iv) Any suspensions of benefits, in 
the aggregate (and, if applicable, considered 
in combination with a partition of the plan 
under section 4233), shall be reasonably es-
timated to achieve, but not materially ex-
ceed, the level that is necessary to avoid in-
solvency. 
‘‘(v) In any case in which a suspension 
of benefits with respect to a plan is made in 
combination with a partition of the plan 
under section 4233, the suspension of bene-
fits may not take effect prior to the effective 
date of such partition. 
‘‘(vi) Any suspensions of benefits shall 
be equitably distributed across the partici-
pant and beneficiary population, taking 
into account factors, with respect to partici-
pants and beneficiaries and their benefits, 
that may include one or more of the fol-
lowing: 
‘‘(I) Age and life expectancy.
1615 
‘‘(II) Length of time in pay sta-
tus. 
‘‘(III) Amount of benefit. 
‘‘(IV) Type of benefit: survivor, 
normal retirement, early retirement. 
‘‘(V) Extent to which participant 
or beneficiary is receiving a subsidized 
benefit. 
‘‘(VI) Extent to which participant 
or beneficiary has received post-retire-
ment benefit increases. 
‘‘(VII) History of benefit increases 
and reductions. 
‘‘(VIII) Years to retirement for ac-
tive employees. 
‘‘(IX) Any discrepancies between 
active and retiree benefits. 
‘‘(X) Extent to which active par-
ticipants are reasonably likely to with-
draw support for the plan, accelerating 
employer withdrawals from the plan 
and increasing the risk of additional 
benefit reductions for participants in 
and out of pay status.
1616 
‘‘(XI) Extent to which benefits are 
attributed to service with an employer 
that failed to pay its full withdrawal 
liability. 
‘‘(vii) In the case of a plan that in-
cludes the benefits described in clause (III), 
benefits suspended under this paragraph 
shall— 
‘‘(I) first, be applied to the max-
imum extent permissible to benefits at-
tributable to a participant’s service for 
an employer which withdrew from the 
plan and failed to pay (or is delin-
quent with respect to paying) the full 
amount of its withdrawal liability 
under section 4201(b)(1) or an agree-
ment with the plan, 
‘‘(II) second, except as provided 
by subclause (III), be applied to all 
other benefits that may be suspended 
under this paragraph, and 
‘‘(III) third, be applied to benefits 
under a plan that are directly attrib-
utable to a participant’s service with 
any employer which has, prior to the
1617 
date of enactment of the Multiemployer 
Pension Reform Act of 2014— 
‘‘(aa) withdrawn from the 
plan in a complete withdrawal 
under section 4203 and has paid 
the full amount of the employer’s 
withdrawal liability under section 
4201(b)(1) or an agreement with 
the plan, and 
‘‘(bb) pursuant to a collective 
bargaining agreement, assumed li-
ability for providing benefits to 
participants and beneficiaries of 
the plan under a separate, single- 
employer plan sponsored by the 
employer, in an amount equal to 
any amount of benefits for such 
participants and beneficiaries re-
duced as a result of the financial 
status of the plan. 
‘‘(E) BENEFIT IMPROVEMENTS.— 
‘‘(i) IN GENERAL.—The plan sponsor 
may, in its sole discretion, provide benefit 
improvements while any suspension of bene-
fits under the plan remains in effect, except
1618 
that the plan sponsor may not increase the 
liabilities of the plan by reason of any ben-
efit improvement for any participant or 
beneficiary not in pay status by the first 
day of the plan year for which the benefit 
improvement takes effect, unless— 
‘‘(I) such action is accompanied 
by equitable benefit improvements in 
accordance with clause (ii) for all par-
ticipants and beneficiaries whose ben-
efit commencement dates were before 
the first day of the plan year for which 
the benefit improvement for such par-
ticipant or beneficiary not in pay sta-
tus took effect; and 
‘‘(II) the plan actuary certifies 
that after taking into account such 
benefits improvements the plan is pro-
jected to avoid insolvency indefinitely 
under section 4245. 
‘‘(ii) EQUITABLE
DISTRIBUTION
OF 
BENEFIT IMPROVEMENTS.— 
‘‘(I) LIMITATION.—The projected 
value of the total liabilities for benefit 
improvements for participants and
1619 
beneficiaries not in pay status by the 
date of the first day of the plan year 
in which the benefit improvements are 
proposed to take effect, as determined 
as of such date, may not exceed the 
projected value of the liabilities arising 
from benefit improvements for partici-
pants and beneficiaries with benefit 
commencement dates prior to the first 
day of such plan year, as so deter-
mined. 
‘‘(II) EQUITABLE
DISTRIBUTION 
OF BENEFITS.—The plan sponsor shall 
equitably distribute any increase in 
total liabilities for benefit improve-
ments in clause (i) to some or all of the 
participants and beneficiaries whose 
benefit commencement date is before 
the date of the first day of the plan 
year in which the benefit improvements 
are proposed to take effect, taking into 
account the relevant factors described 
in subparagraph (D)(vi) and the extent 
to which the benefits of the partici-
1620 
pants and beneficiaries were sus-
pended. 
‘‘(iii) SPECIAL
RULE
FOR
RESUMP-
TIONS
OF
BENEFITS
ONLY
FOR
PARTICI-
PANTS IN PAY STATUS.—The plan sponsor 
may increase liabilities of the plan through 
a resumption of benefits for participants 
and beneficiaries in pay status only if the 
plan sponsor equitably distributes the value 
of resumed benefits to some or all of the 
participants and beneficiaries in pay sta-
tus, taking into account the relevant factors 
described in subparagraph (D)(vi). 
‘‘(iv) SPECIAL
RULE
FOR
CERTAIN 
BENEFIT
INCREASES.—This subparagraph 
shall not apply to a resumption of sus-
pended benefits or plan amendment which 
increases liabilities with respect to partici-
pants and beneficiaries not in pay status by 
the first day of the plan year in which the 
benefit improvements took effect which— 
‘‘(I) the Secretary of the Treasury, 
in consultation with the Pension Ben-
efit Guaranty Corporation and the 
Secretary of Labor, determines to be
1621 
reasonable and which provides for only 
de minimis increases in the liabilities 
of the plan, or 
‘‘(II) is required as a condition of 
qualification under part I of sub-
chapter D of chapter 1 of subtitle A of 
the Internal Revenue Code of 1986 or 
to comply with other applicable law, as 
determined by the Secretary of the 
Treasury. 
‘‘(v) ADDITIONAL
LIMITATIONS.—Ex-
cept for resumptions of suspended benefits 
described in clause (iii), the limitations on 
benefit improvements while a suspension of 
benefits is in effect under this paragraph 
shall be in addition to any other applicable 
limitations on increases in benefits imposed 
on a plan. 
‘‘(vi) DEFINITION
OF
BENEFIT
IM-
PROVEMENT.—For purposes of this subpara-
graph, the term ‘benefit improvement’ 
means, with respect to a plan, a resumption 
of suspended benefits, an increase in bene-
fits, an increase in the rate at which bene-
fits accrue, or an increase in the rate at
1622 
which benefits become nonforfeitable under 
the plan. 
‘‘(F) NOTICE REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—No suspension of 
benefits may be made pursuant to this 
paragraph unless notice of such proposed 
suspension has been given by the plan spon-
sor concurrently with an application for 
approval of such suspension submitted 
under subparagraph (G) to the Secretary of 
the Treasury to— 
‘‘(I) such plan participants and 
beneficiaries who may be contacted by 
reasonable efforts, 
‘‘(II) each employer who has an 
obligation to contribute (within the 
meaning of section 4212(a)) under the 
plan, and 
‘‘(III) each employee organization 
which, for purposes of collective bar-
gaining, represents plan participants 
employed by such an employer. 
‘‘(ii) CONTENT OF NOTICE.—The notice 
under clause (i) shall contain—
1623 
‘‘(I) sufficient information to en-
able participants and beneficiaries to 
understand the effect of any suspen-
sions of benefits, including an individ-
ualized estimate (on an annual or 
monthly basis) of such effect on each 
participant or beneficiary, 
‘‘(II) a description of the factors 
considered by the plan sponsor in de-
signing the benefit suspensions, 
‘‘(III) a statement that the appli-
cation for approval of any suspension 
of benefits shall be available on the 
website of the Department of the Treas-
ury and that comments on such appli-
cation will be accepted, 
‘‘(IV) information as to the rights 
and remedies of plan participants and 
beneficiaries, 
‘‘(V) if applicable, a statement de-
scribing the appointment of a retiree 
representative, the date of appointment 
of such representative, identifying in-
formation about the retiree representa-
tive (including whether the representa-
1624 
tive is a plan trustee), and how to con-
tact such representative, and 
‘‘(VI) information on how to con-
tact the Department of the Treasury 
for further information and assistance 
where appropriate. 
‘‘(iii) FORM AND MANNER.—Any notice 
under clause (i)— 
‘‘(I) shall be provided in a form 
and manner prescribed in guidance by 
the Secretary of the Treasury, in con-
sultation with the Pension Benefit 
Guaranty Corporation and the Sec-
retary of Labor, notwithstanding any 
other provision of law, 
‘‘(II) shall be written in a man-
ner so as to be understood by the aver-
age plan participant, and 
‘‘(III) may be provided in writ-
ten, electronic, or other appropriate 
form to the extent such form is reason-
ably accessible to persons to whom the 
notice is required to be provided. 
‘‘(iv) OTHER NOTICE REQUIREMENT.— 
Any notice provided under clause (i) shall
1625 
fulfill the requirement for notice of a sig-
nificant reduction in benefits described in 
section 204(h). 
‘‘(v) MODEL
NOTICE.—The Secretary 
of the Treasury, in consultation with the 
Pension Benefit Guaranty Corporation and 
the Secretary of Labor, shall in the guid-
ance prescribed under clause (iii)(I) estab-
lish a model notice that a plan sponsor may 
use to meet the requirements of this sub-
paragraph. 
‘‘(G) APPROVAL
PROCESS
BY
THE
SEC-
RETARY
OF
THE
TREASURY
IN
CONSULTATION 
WITH
THE
PENSION
BENEFIT
GUARANTY
COR-
PORATION AND THE SECRETARY OF LABOR.— 
‘‘(i) IN GENERAL.—The plan sponsor 
of a plan in critical and declining status 
for a plan year that seeks to suspend bene-
fits must submit an application to the Sec-
retary of the Treasury for approval of the 
suspensions of benefits. If the plan sponsor 
submits an application for approval of the 
suspensions, the Secretary of the Treasury, 
in consultation with the Pension Benefit 
Guaranty Corporation and the Secretary of
1630 
‘‘(III) A statement that the sus-
pension has been approved by the Sec-
retary of the Treasury, in consultation 
with the Pension Benefit Guaranty 
Corporation and the Secretary of 
Labor. 
‘‘(IV) A statement that the plan 
sponsor has determined that the plan 
will become insolvent unless the sus-
pension takes effect. 
‘‘(V) A statement that insolvency 
of the plan could result in benefits 
lower than benefits paid under the sus-
pension. 
‘‘(VI) A statement that insolvency 
of the Pension Benefit Guaranty Cor-
poration would result in benefits lower 
than benefits paid in the case of plan 
insolvency. 
‘‘(iv) COMMUNICATION BY PLAN SPON-
SOR.—It is the sense of Congress that, de-
pending on the size and resources of the 
plan and geographic distribution of the 
plan’s participants, the plan sponsor should 
take such steps as may be necessary to in-
1631 
form participants about proposed benefit 
suspensions through in-person meetings, 
telephone or internet-based communications, 
mailed information, or by other means. 
‘‘(v) 
SYSTEMICALLY
IMPORTANT 
PLANS.— 
‘‘(I) IN GENERAL.—Not later than 
14 days after a vote under this sub-
paragraph rejecting a suspension, the 
Secretary of the Treasury, in consulta-
tion with the Pension Benefit Guar-
anty Corporation and the Secretary of 
Labor, shall determine whether the 
plan is a systemically important plan. 
If the Secretary of the Treasury, in 
consultation with the Pension Benefit 
Guaranty Corporation and the Sec-
retary of Labor, determines that the 
plan is a systemically important plan, 
not later than the end of the 90-day 
period beginning on the date the re-
sults of the vote are certified, the Sec-
retary of the Treasury shall, notwith-
standing such adverse vote—
1632 
‘‘(aa) permit the implemen-
tation of the suspension proposed 
by the plan sponsor; or 
‘‘(bb) permit the implementa-
tion of a modification by the Sec-
retary of the Treasury, in con-
sultation with the Pension Benefit 
Guaranty Corporation and the 
Secretary of Labor, of such sus-
pension (so long as the plan is 
projected 
to 
avoid 
insolvency 
within the meaning of section 
4245 under such modification). 
‘‘(II) 
RECOMMENDATIONS.—Not 
later than 30 days after a determina-
tion by the Secretary of the Treasury, 
in consultation with the Pension Ben-
efit Guaranty Corporation and the 
Secretary of Labor, that the plan is 
systemically important, the Partici-
pant and Plan Sponsor Advocate se-
lected under section 4004 may submit 
recommendations to the Secretary of 
the Treasury with respect to the sus-
1633 
pension or any revisions to the suspen-
sion. 
‘‘(III) SYSTEMICALLY IMPORTANT 
PLAN DEFINED.— 
‘‘(aa) 
IN
GENERAL.—For 
purposes of this subparagraph, a 
systemically important plan is a 
plan with respect to which the 
Pension Benefit Guaranty Cor-
poration projects the present value 
of projected financial assistance 
payments exceeds $1,000,000,000 
if suspensions are not imple-
mented. 
‘‘(bb) INDEXING.—For cal-
endar years beginning after 2015, 
there shall be substituted for the 
dollar amount specified in item 
(aa) an amount equal to the prod-
uct of such dollar amount and a 
fraction, the numerator of which 
is the contribution and benefit 
base (determined under section 
230 of the Social Security Act) for 
the preceding calendar year and
1634 
the denominator of which is such 
contribution and benefit base for 
calendar year 2014. If the amount 
otherwise determined under this 
item 
is 
not 
a 
multiple 
of 
$1,000,000, such amount shall be 
rounded to the next lowest mul-
tiple of $1,000,000. 
‘‘(vi) FINAL AUTHORIZATION TO SUS-
PEND.—In any case in which a suspension 
goes into effect following a vote pursuant to 
clause (ii) (or following a determination 
under clause (v) that the plan is a system-
ically important plan), the Secretary of the 
Treasury, in consultation with the Pension 
Benefit Guaranty Corporation and the Sec-
retary of Labor, shall issue a final author-
ization to suspend with respect to the sus-
pension not later than 7 days after such 
vote (or, in the case of a suspension that 
goes into effect under clause (v), at a time 
sufficient to allow the implementation of the 
suspension prior to the end of the 90-day 
period described in clause (v)(I)). 
‘‘(I) JUDICIAL REVIEW.—
1635 
‘‘(i) DENIAL OF APPLICATION.—An ac-
tion by the plan sponsor challenging the de-
nial of an application for suspension of 
benefits by the Secretary of the Treasury, in 
consultation with the Pension Benefit Guar-
anty Corporation and the Secretary of 
Labor, may only be brought following such 
denial. 
‘‘(ii) APPROVAL
OF
SUSPENSION
OF 
BENEFITS.— 
‘‘(I) TIMING OF ACTION.—An ac-
tion challenging a suspension of bene-
fits under this paragraph may only be 
brought following a final authorization 
to suspend by the Secretary of the 
Treasury, in consultation with the 
Pension Benefit Guaranty Corporation 
and the Secretary of Labor, under sub-
paragraph (H)(vi). 
‘‘(II) STANDARDS OF REVIEW.— 
‘‘(aa) IN GENERAL.—A court 
shall review an action challenging 
a suspension of benefits under this 
paragraph in accordance with sec-
1636 
tion 706 of title 5, United States 
Code. 
‘‘(bb) TEMPORARY
INJUNC-
TION.—A court reviewing an ac-
tion challenging a suspension of 
benefits under this paragraph 
may not grant a temporary in-
junction with respect to such sus-
pension unless the court finds a 
clear and convincing likelihood 
that the plaintiff will prevail on 
the merits of the case. 
‘‘(iii) RESTRICTED
CAUSE
OF
AC-
TION.—A participant or beneficiary affected 
by a benefit suspension under this para-
graph shall not have a cause of action 
under this title. 
‘‘(iv) LIMITATION ON ACTION TO SUS-
PEND BENEFITS.—No action challenging a 
suspension of benefits following the final au-
thorization to suspend or the denial of an 
application for suspension of benefits pursu-
ant to this paragraph may be brought after 
one year after the earliest date on which the 
plaintiff acquired or should have acquired
1637 
actual knowledge of the existence of such 
cause of action. 
‘‘(J) SPECIAL RULE FOR EMERGENCE FROM 
CRITICAL
STATUS.—A plan certified to be in 
critical and declining status pursuant to projec-
tions made under subsection (b)(3) for which a 
suspension of benefits has been made by the plan 
sponsor pursuant to this paragraph shall not 
emerge from critical status under paragraph 
(4)(B), until such time as— 
‘‘(i) the plan is no longer certified to 
be in critical or endangered status under 
paragraphs (1) and (2) of subsection (b), 
and 
‘‘(ii) the plan is projected to avoid in-
solvency under section 4245.’’. 
(7) RULES RELATING TO WITHDRAWAL LIABIL-
ITY.— 
(A) 
BENEFIT
SUSPENSIONS
DIS-
REGARDED.—Section 305(g)(1) of the Employee 
Retirement Income Security Act of 1974, as 
added by section 109, is further amended by in-
serting ‘‘or benefit reductions or suspensions 
while in critical and declining status under sub-
section (e)(9)), unless the withdrawal occurs
1638 
more than ten years after the effective date of a 
benefit suspension by a plan in critical and de-
clining status,’’ after ‘‘benefit reductions under 
subsection (e)(8) or (f)’’. 
(B) AUTHORITY OF PLAN TO SUBORDINATE 
WITHDRAWAL
LIABILITY
CLAIMS.—Section 
4219(d) of such Act (29 U.S.C. 1399(d)) is 
amended by striking the period at the end and 
inserting ‘‘or to any arrangement relating to 
withdrawal liability involving the plan.’’. 
(C) CIVIL ACTIONS.—Section 4003(f)(1) of 
such Act (29 U.S.C. 1303)(f)(1)) is amended by 
inserting ‘‘plan sponsor,’’ before ‘‘fiduciary’’. 
(8) GUIDANCE.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury, in consultation with the Pension Ben-
efit Guaranty Corporation and the Secretary of 
Labor, shall publish appropriate guidance to imple-
ment section 305(e)(9) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1085(e)(9)). 
(b) AMENDMENTS TO THE INTERNAL REVENUE CODE 
OF 1986.— 
(1) GENERAL RULE FOR PLAN IN CRITICAL AND 
DECLINING STATUS.—Section 432(a) of the Internal 
Revenue Code of 1986 is amended—
1639 
(A) in paragraph (1)(B), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (2)(B), by striking the pe-
riod at the end and inserting ‘‘, and’’; and 
(C) by adding at the end the following: 
‘‘(3) if the plan is in critical and declining sta-
tus— 
‘‘(A) the requirements of paragraph (2) 
shall apply to the plan; and 
‘‘(B) the plan sponsor may, by plan amend-
ment, suspend benefits in accordance with the re-
quirements of subsection (e)(9).’’. 
(2) CRITICAL
AND
DECLINING
STATUS
DE-
FINED.—Section 432(b) of the Internal Revenue Code 
of 1986, as amended by sections 102 and 104, is fur-
ther amended by adding at the end the following: 
‘‘(6) CRITICAL
AND
DECLINING
STATUS.—For 
purposes of this section, a plan in critical status shall 
be treated as in critical and declining status if the 
plan is described in one or more of subparagraphs 
(A), (B), (C), and (D) of paragraph (2) and the plan 
is projected to become insolvent within the meaning 
of section 418E during the current plan year or any 
of the 14 succeeding plan years (19 succeeding plan 
years if the plan has a ratio of inactive participants
1640 
to active participants that exceeds 2 to 1 or if the 
funded percentage of the plan is less than 80 per-
cent).’’. 
(3) 
ANNUAL
CERTIFICATION.—Section 
432(b)(3)(A)(i) of the Internal Revenue Code of 1986 
is amended— 
(A) by striking ‘‘and whether’’ and insert-
ing ‘‘, whether’’, and 
(B) by inserting ‘‘, and whether or not the 
plan is or will be in critical and declining status 
for such plan year’’ before ‘‘, and’’ at the end. 
(4) PROJECTIONS OF ASSETS AND LIABILITIES.— 
Section 432(b)(3)(B) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
‘‘(iv) PROJECTIONS OF CRITICAL AND 
DECLINING
STATUS.—In 
determining 
whether a plan is in critical and declining 
status as described in subsection (e)(9), 
clauses (i), (ii), and (iii) shall apply, except 
that— 
‘‘(I) if reasonable, the plan actu-
ary shall assume that each contrib-
uting employer in compliance con-
tinues to comply through the end of the 
rehabilitation period or such later time
1641 
as provided in subsection (e)(3)(A)(ii) 
with the terms of the rehabilitation 
plan that correspond to the schedule 
adopted or imposed under subsection 
(e), and 
‘‘(II) the plan actuary shall take 
into account any suspensions of bene-
fits described in subsection (e)(9) 
adopted in a prior plan year that are 
still in effect.’’. 
(5) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER 
PLANS IN CRITICAL AND DECLINING STATUS.—Section 
432(e) of the Internal Revenue Code of 1986 (as 
amended by section 109) is amended by inserting 
after paragraph (8) the following: 
‘‘(9) BENEFIT
SUSPENSIONS
FOR
MULTIEM-
PLOYER
PLANS
IN
CRITICAL
AND
DECLINING
STA-
TUS.— 
‘‘(A) IN
GENERAL.—Notwithstanding sec-
tion 411(d)(6) and subject to subparagraphs (B) 
through (I), the plan sponsor of a plan in crit-
ical and declining status may, by plan amend-
ment, suspend benefits which the sponsor deems 
appropriate. 
‘‘(B) SUSPENSION OF BENEFITS.—
1642 
‘‘(i) SUSPENSION
OF
BENEFITS
DE-
FINED.—For purposes of this subsection, the 
term ‘suspension of benefits’ means the tem-
porary or permanent reduction of any cur-
rent or future payment obligation of the 
plan to any participant or beneficiary 
under the plan, whether or not in pay sta-
tus at the time of the suspension of benefits. 
‘‘(ii) LENGTH OF SUSPENSIONS.—Any 
suspension of benefits made under subpara-
graph (A) shall remain in effect until the 
earlier of when the plan sponsor provides 
benefit improvements in accordance with 
subparagraph (E) or the suspension of bene-
fits expires by its own terms. 
‘‘(iii) NO LIABILITY.—The plan shall 
not be liable for any benefit payments not 
made as a result of a suspension of benefits 
under this paragraph. 
‘‘(iv) APPLICABILITY.—For purposes of 
this paragraph, all references to suspensions 
of benefits, increases in benefits, or resump-
tions of suspended benefits with respect to 
participants shall also apply with respect to
1643 
benefits of beneficiaries or alternative pay-
ees of participants. 
‘‘(v) RETIREE REPRESENTATIVE.— 
‘‘(I) IN GENERAL.—In the case of 
a plan with 10,000 or more partici-
pants, not later than 60 days prior to 
the plan sponsor submitting an appli-
cation to suspend benefits, the plan 
sponsor shall select a participant of the 
plan in pay status to act as a retiree 
representative. The retiree representa-
tive shall advocate for the interests of 
the retired and deferred vested partici-
pants and beneficiaries of the plan 
throughout the suspension approval 
process. 
‘‘(II) 
REASONABLE
EXPENSES 
FROM PLAN.—The plan shall provide 
for reasonable expenses by the retiree 
representative, 
including 
reasonable 
legal and actuarial support, commen-
surate with the plan’s size and funded 
status. 
‘‘(III) SPECIAL
RULE
RELATING 
TO
FIDUCIARY
STATUS.—Duties per-
1644 
formed pursuant to subclause (I) shall 
not be subject to section 4975. The pre-
ceding sentence shall not apply to those 
duties associated with an application 
to suspend benefits pursuant to sub-
paragraph (G) that are performed by 
the retiree representative who is also a 
plan trustee. 
‘‘(C) CONDITIONS FOR SUSPENSIONS.—The 
plan sponsor of a plan in critical and declining 
status for a plan year may suspend benefits only 
if the following conditions are met: 
‘‘(i) Taking into account the proposed 
suspensions of benefits (and, if applicable, a 
proposed partition of the plan under section 
4233 of the Employee Retirement Income 
Security Act of 1974), the plan actuary cer-
tifies that the plan is projected to avoid in-
solvency within the meaning of section 
418E, assuming the suspensions of benefits 
continue until the suspensions of benefits ex-
pire by their own terms or if no such expi-
ration date is set, indefinitely. 
‘‘(ii) The plan sponsor determines, in a 
written record to be maintained throughout
1645 
the period of the benefit suspension, that the 
plan is still projected to become insolvent 
unless benefits are suspended under this 
paragraph, although all reasonable meas-
ures to avoid insolvency have been taken 
(and continue to be taken during the period 
of the benefit suspension). In its determina-
tion, the plan sponsor may take into ac-
count factors including the following: 
‘‘(I) Current and past contribu-
tion levels. 
‘‘(II) Levels of benefit accruals 
(including any prior reductions in the 
rate of benefit accruals). 
‘‘(III) Prior reductions (if any) of 
adjustable benefits. 
‘‘(IV) Prior suspensions (if any) 
of benefits under this subsection. 
‘‘(V) The impact on plan solvency 
of the subsidies and ancillary benefits 
available to active participants. 
‘‘(VI) Compensation levels of ac-
tive participants relative to employees 
in the participants’ industry generally.
1646 
‘‘(VII) Competitive and other eco-
nomic factors facing contributing em-
ployers. 
‘‘(VIII) The impact of benefit and 
contribution levels on retaining active 
participants and bargaining groups 
under the plan. 
‘‘(IX) The impact of past and an-
ticipated contribution increases under 
the plan on employer attrition and re-
tention levels. 
‘‘(X) Measures undertaken by the 
plan sponsor to retain or attract con-
tributing employers. 
‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any 
suspensions of benefits made by a plan sponsor 
pursuant to this paragraph shall be subject to 
the following limitations: 
‘‘(i) The monthly benefit of any partic-
ipant or beneficiary may not be reduced 
below 110 percent of the monthly benefit 
which is guaranteed by the Pension Benefit 
Guaranty Corporation under section 4022A 
of the Employee Retirement Income Secu-