116TH CONGRESS 
1ST SESSION 
H. R. 397 
AN ACT 
To amend the Internal Revenue Code of 1986 to create 
a Pension Rehabilitation Trust Fund, to establish a Pen-
sion Rehabilitation Administration within the Depart-
ment of the Treasury to make loans to multiemployer 
defined benefit plans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rehabilitation for Mul-
tiemployer Pensions Act of 2019’’. 
SEC. 2. PENSION REHABILITATION ADMINISTRATION; ES-
TABLISHMENT; POWERS. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Treasury an agency to be known as 
the ‘‘Pension Rehabilitation Administration’’. 
(b) DIRECTOR.— 
(1) ESTABLISHMENT
OF
POSITION.—There 
shall be at the head of the Pension Rehabilitation 
Administration a Director, who shall be appointed 
by the President. 
(2) TERM.— 
(A) IN GENERAL.—The term of office of 
the Director shall be 5 years. 
(B) SERVICE
UNTIL
APPOINTMENT
OF 
SUCCESSOR.—An individual serving as Director 
at the expiration of a term may continue to 
serve until a successor is appointed. 
(3) POWERS.— 
(A) APPOINTMENT
OF
DEPUTY
DIREC-
TORS, OFFICERS, AND
EMPLOYEES.—The Di-
rector may appoint Deputy Directors, officers, 
and employees, including attorneys, in accord-
ance with chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code. 
(B) CONTRACTING.— 
(i) IN GENERAL.—The Director may 
contract for financial and administrative 
services (including those related to budget 
and accounting, financial reporting, per-
sonnel, and procurement) with the General 
Services Administration, or such other 
Federal agency as the Director determines 
appropriate, for which payment shall be 
made in advance, or by reimbursement, 
from funds of the Pension Rehabilitation 
Administration in such amounts as may be 
agreed upon by the Director and the head 
of the Federal agency providing the serv-
ices. 
(ii) SUBJECT TO APPROPRIATIONS.— 
Contract authority under clause (i) shall be 
effective for any fiscal year only to the ex-
tent that appropriations are available for 
that purpose.
SEC. 3. PENSION REHABILITATION TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 9512. PENSION REHABILITATION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Pension Rehabilitation Trust Fund’ 
(hereafter in this section referred to as the ‘Fund’), con-
sisting of such amounts as may be appropriated or cred-
ited to the Fund as provided in this section and section 
9602(b). 
‘‘(b) TRANSFERS TO FUND.— 
‘‘(1) AMOUNTS
ATTRIBUTABLE
TO
TREASURY 
BONDS.—There shall be credited to the Fund the 
amounts transferred under section 6 of the Rehabili-
tation for Multiemployer Pensions Act of 2019. 
‘‘(2) LOAN INTEREST AND PRINCIPAL.— 
‘‘(A) IN GENERAL.—The Director of the 
Pension Rehabilitation Administration estab-
lished under section 2 of the Rehabilitation for 
Multiemployer Pensions Act of 2019 shall de-
posit in the Fund any amounts received from a 
plan as payment of interest or principal on a 
loan under section 4 of such Act.
‘‘(B) INTEREST.—For purposes of sub-
paragraph (A), the term ‘interest’ includes 
points and other similar amounts. 
‘‘(3) AVAILABILITY OF FUNDS.—Amounts cred-
ited to or deposited in the Fund shall remain avail-
able until expended. 
‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 
Fund are available without further appropriation to the 
Pension Rehabilitation Administration— 
‘‘(1) for the purpose of making the loans de-
scribed in section 4 of the Rehabilitation for Multi-
employer Pensions Act of 2019, 
‘‘(2) for the payment of principal and interest 
on obligations issued under section 6 of such Act, 
and 
‘‘(3) for administrative and operating expenses 
of such Administration.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 9512. Pension Rehabilitation Trust Fund.’’. 
SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS. 
(a) LOAN AUTHORITY.—
(1) IN GENERAL.—The Pension Rehabilitation 
Administration established under section 2 is au-
thorized— 
(A) to make loans to multiemployer plans 
(as defined in section 414(f) of the Internal 
Revenue Code of 1986) which are defined ben-
efit plans (as defined in section 414(j) of such 
Code) and which— 
(i) are in critical and declining status 
(within the meaning of section 432(b)(6) 
of such Code and section 305(b)(6) of the 
Employee Retirement and Income Security 
Act) as of the date of the enactment of 
this section, or with respect to which a sus-
pension of benefits has been approved 
under section 432(e)(9) of such Code and 
section 305(e)(9) of such Act as of such 
date; 
(ii) as of such date of enactment, are 
in critical status (within the meaning of 
section 432(b)(2) of such Code and section 
305(b)(2) of such Act), have a modified 
funded percentage of less than 40 percent, 
and have a ratio of active to inactive par-
ticipants which is less than 2 to 5; or
(iii) are insolvent for purposes of sec-
tion 418E of such Code as of such date of 
enactment, if they became insolvent after 
December 16, 2014, and have not been 
terminated; and 
(B) subject to subsection (b), to establish 
appropriate terms for such loans. 
For purposes of subparagraph (A)(ii), the term 
‘‘modified funded percentage’’ means the percentage 
equal to a fraction the numerator of which is current 
value of plan assets (as defined in section 3(26) of 
such Act) and the denominator of which is current 
liabilities (as defined in section 431(c)(6)(D) of such 
Code and section 304(c)(6)(D) of such Act). 
(2) CONSULTATION.—The Director of the Pen-
sion Rehabilitation Administration shall consult with 
the Secretary of the Treasury, the Secretary of 
Labor, and the Director of the Pension Benefit 
Guaranty Corporation before making any loan under 
paragraph (1), and shall share with such persons the 
application and plan information with respect to 
each such loan. 
(3) ESTABLISHMENT OF LOAN PROGRAM.— 
(A) IN GENERAL.—A program to make the 
loans authorized under this section shall be es-
tablished not later than September 30, 2019, 
with guidance regarding such program to be 
promulgated by the Director of the Pension Re-
habilitation Administration, in consultation with 
the Director of the Pension Benefit Guaranty 
Corporation, the Secretary of the Treasury, and 
the Secretary of Labor, not later than Decem-
ber 31, 2019. 
(B) LOANS
AUTHORIZED
BEFORE
PRO-
GRAM DATE.—Without regard to whether the 
program under subparagraph (A) has been es-
tablished, a plan may apply for a loan under 
this section before either date described in such 
subparagraph, and the Pension Rehabilitation 
Administration shall approve the application 
and make the loan before establishment of the 
program if necessary to avoid any suspension of 
the accrued benefits of participants. 
(b) LOAN TERMS.— 
(1) IN GENERAL.—The terms of any loan made 
under subsection (a) shall state that— 
(A) the plan shall make payments of inter-
est on the loan for a period of 29 years begin-
ning on the date of the loan (or 19 years in the
case of a plan making the election under sub-
section (c)(5)); 
(B) final payment of interest and principal 
shall be due in the 30th year after the date of 
the loan (except as provided in an election 
under subsection (c)(5)); and 
(C) as a condition of the loan, the plan 
sponsor stipulates that— 
(i) except as provided in clause (ii), 
the plan will not increase benefits, allow 
any employer participating in the plan to 
reduce its contributions, or accept any col-
lective bargaining agreement which pro-
vides for reduced contribution rates, dur-
ing the 30-year period described in sub-
paragraphs (A) and (B); 
(ii) in the case of a plan with respect 
to which a suspension of benefits has been 
approved under section 432(e)(9) of the 
Internal Revenue Code of 1986 and section 
305(e)(9) of the Employee Retirement In-
come Security Act of 1974, or under sec-
tion 418E of such Code, before the loan, 
the plan will reinstate the suspended bene-
fits (or will not carry out any suspension
which has been approved but not yet im-
plemented); 
(iii) the plan sponsor will comply with 
the requirements of section 6059A of the 
Internal Revenue Code of 1986; 
(iv) the plan will continue to pay all 
premiums due under section 4007 of the 
Employee Retirement Income Security Act 
of 1974; and 
(v) the plan and plan administrator 
will meet such other requirements as the 
Director of the Pension Rehabilitation Ad-
ministration provides in the loan terms. 
The terms of the loan shall not make reference 
to whether the plan is receiving financial assist-
ance under section 4261(d) of the Employee 
Retirement Income Security Act of 1974 (29 
U.S.C. 1431(d)) or to any adjustment of the 
loan amount under subsection (d)(2)(A)(ii). 
(2) INTEREST
RATE.—Except as provided in 
the second sentence of this paragraph and sub-
section (c)(5), loans made under subsection (a) shall 
have as low an interest rate as is feasible. Such rate 
shall be determined by the Pension Rehabilitation 
Administration and shall—
the loan during such period and to accu-
mulate sufficient funds to repay the prin-
cipal when due; 
(B) provide the plan’s most recently filed 
Form 5500 as of the date of application and 
any other information necessary to determine 
the loan amount under subsection (d); 
(C) stipulate whether the plan is also ap-
plying for financial assistance under section 
4261(d) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431(d)) in 
combination with the loan to enable the plan to 
avoid insolvency and to pay benefits, or is al-
ready receiving such financial assistance as a 
result of a previous application; 
(D) state in what manner the loan pro-
ceeds will be invested pursuant to subsection 
(d), the person from whom any annuity con-
tracts under such subsection will be purchased, 
and the person who will be the investment man-
ager for any portfolio implemented under such 
subsection; and 
(E) include such other information and 
certifications as the Director of the Pension Re-
habilitation Administration shall require.
(2) STANDARD FOR ACCEPTING ACTUARIAL AND 
PLAN SPONSOR DETERMINATIONS AND DEMONSTRA-
TIONS IN THE APPLICATION.—In evaluating the plan 
sponsor’s application, the Director of the Pension 
Rehabilitation Administration shall accept the deter-
minations and demonstrations in the application un-
less the Director, in consultation with the Director 
of the Pension Benefit Guaranty Corporation, the 
Secretary of the Treasury, and the Secretary of 
Labor, concludes that any such determinations or 
demonstrations in the application (or any underlying 
assumptions) are unreasonable or are inconsistent 
with any rules issued by the Director pursuant to 
subsection (g). 
(3) REQUIRED ACTIONS; DEEMED APPROVAL.— 
The Director of the Pension Rehabilitation Adminis-
tration shall approve or deny any application under 
this subsection within 90 days after the submission 
of such application. An application shall be deemed 
approved unless, within such 90 days, the Director 
notifies the plan sponsor of the denial of such appli-
cation and the reasons for such denial. Any approval 
or denial of an application by the Director of the 
Pension Rehabilitation Administration shall be treat-
ed as a final agency action for purposes of section
704 of title 5, United States Code. The Pension Re-
habilitation Administration shall make the loan pur-
suant to any application promptly after the approval 
of such application. 
(4) CERTAIN
PLANS
REQUIRED
TO
APPLY.— 
The plan sponsor of any plan with respect to which 
a suspension of benefits has been approved under 
section 432(e)(9) of the Internal Revenue Code of 
1986 and section 305(e)(9) of the Employee Retire-
ment Income Security Act of 1974 or under section 
418E of such Code, before the date of the enactment 
of this Act shall apply for a loan under this section. 
The Director of the Pension Rehabilitation Adminis-
tration shall provide for such plan sponsors to use 
the 
simplified 
application 
under 
subsection 
(d)(2)(B). 
(5) INCENTIVE FOR EARLY REPAYMENT.—The 
plan sponsor may elect at the time of the application 
to repay the loan principal, along with the remaining 
interest, at least as rapidly as equal installments 
over the 10-year period beginning with the 21st year 
after the date of the loan. In the case of a plan mak-
ing this election, the interest on the loan shall be re-
duced by 0.5 percentage points. 
(d) LOAN AMOUNT AND USE.—
(1) AMOUNT OF LOAN.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B) and paragraph (2), the 
amount of any loan under subsection (a) shall 
be, as demonstrated by the plan sponsor on the 
application under subsection (c), the amount 
needed to purchase annuity contracts or to im-
plement a portfolio described in paragraph 
(3)(C) (or a combination of the two) sufficient 
to provide benefits of participants and bene-
ficiaries of the plan in pay status, and termi-
nated vested benefits, at the time the loan is 
made. 
(B) PLANS
WITH
SUSPENDED
BENE-
FITS.—In the case of a plan with respect to 
which a suspension of benefits has been ap-
proved under section 432(e)(9) of the Internal 
Revenue Code of 1986 and section 305(e)(9) of 
the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1085(e)(9)) or under sec-
tion 418E of such Code— 
(i) the suspension of benefits shall not 
be taken into account in applying subpara-
graph (A); and
(ii) the loan amount shall be the 
amount sufficient to provide benefits of 
participants and beneficiaries of the plan 
in pay status and terminated vested bene-
fits at the time the loan is made, deter-
mined without regard to the suspension, 
including retroactive payment of benefits 
which would otherwise have been payable 
during the period of the suspension. 
(2) COORDINATION WITH PBGC FINANCIAL AS-
SISTANCE.— 
(A) IN GENERAL.—In the case of a plan 
which is also applying for financial assistance 
under section 4261(d) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1431(d))— 
(i) the plan sponsor shall submit the 
loan application and the application for fi-
nancial assistance jointly to the Pension 
Rehabilitation Administration and the Pen-
sion Benefit Guaranty Corporation with 
the information necessary to determine the 
eligibility for and amount of the loan under 
this section and the financial assistance 
under section 4261(d) of such Act; and
(ii) if such financial assistance is 
granted, the amount of the loan under sub-
section (a) shall not exceed an amount 
equal to the excess of— 
(I) the amount determined under 
paragraph (1)(A) or (1)(B)(ii) (which-
ever is applicable); over 
(II) the amount of such financial 
assistance. 
(B) PLANS ALREADY RECEIVING PBGC AS-
SISTANCE.—The Director of the Pension Reha-
bilitation Administration shall provide for a 
simplified application for the loan under this 
section which may be used by an insolvent plan 
which has not been terminated and which is al-
ready receiving financial assistance (other than 
under section 4261(d) of such Act) from the 
Pension Benefit Guaranty Corporation at the 
time of the application for the loan under this 
section. 
(3) USE OF LOAN FUNDS.— 
(A) IN
GENERAL.—Notwithstanding sec-
tion 432(f)(2)(A)(ii) of the Internal Revenue 
Code of 1986 and section 305(f)(2)(A)(ii) of 
such Act, the loan received under subsection (a)
shall only be used to purchase annuity contracts 
which meet the requirements of subparagraph 
(B) or to implement a portfolio described in 
subparagraph (C) (or a combination of the two) 
to provide the benefits described in paragraph 
(1). 
(B) 
ANNUITY
CONTRACT
REQUIRE-
MENTS.—The 
annuity 
contracts 
purchased 
under subparagraph (A) shall be issued by an 
insurance company which is licensed to do busi-
ness under the laws of any State and which is 
rated A or better by a nationally recognized sta-
tistical rating organization, and the purchase of 
such contracts shall meet all applicable fidu-
ciary standards under the Employee Retirement 
Income Security Act of 1974. 
(C) PORTFOLIO.— 
(i) IN
GENERAL.—A portfolio de-
scribed in this subparagraph is— 
(I) a cash matching portfolio or 
duration matching portfolio consisting 
of investment grade (as rated by a na-
tionally recognized statistical rating 
organization) fixed income invest-
ments, including United States dollar-
denominated public or private debt 
obligations issued or guaranteed by 
the United States or a foreign issuer, 
which are tradeable in United States 
currency and are issued at fixed or 
zero coupon rates; or 
(II) any other portfolio pre-
scribed by the Secretary of the Treas-
ury in regulations which has a similar 
risk profile to the portfolios described 
in subclause (I) and is equally protec-
tive of the interests of participants 
and beneficiaries. 
Once implemented, such a portfolio shall 
be maintained until all liabilities to partici-
pants and beneficiaries in pay status, and 
terminated vested participants, at the time 
of the loan are satisfied. 
(ii) FIDUCIARY
DUTY.—Any invest-
ment manager of a portfolio under this 
subparagraph shall acknowledge in writing 
that such person is a fiduciary under the 
Employee Retirement Income Security Act 
of 1974 with respect to the plan.
(iii) TREATMENT
OF
PARTICIPANTS 
AND
BENEFICIARIES.—Participants and 
beneficiaries covered by a portfolio under 
this subparagraph shall continue to be 
treated as participants and beneficiaries of 
the plan, including for purposes of title IV 
of the Employee Retirement Income Secu-
rity Act of 1974. 
(D) ACCOUNTING.— 
(i) IN GENERAL.—Annuity contracts 
purchased 
and 
portfolios 
implemented 
under this paragraph shall be used solely 
to provide the benefits described in para-
graph (1) until all such benefits have been 
paid and shall be accounted for separately 
from the other assets of the plan. 
(ii) OVERSIGHT OF NON-ANNUITY IN-
VESTMENTS.— 
(I) IN GENERAL.—Any portfolio 
implemented under this paragraph 
shall be subject to oversight by the 
Pension Rehabilitation Administra-
tion, including a mandatory triennial 
review of the adequacy of the portfolio 
to provide the benefits described in
paragraph (1) and approval (to be 
provided within a reasonable period of 
time) of any decision by the plan 
sponsor to change the investment 
manager of the portfolio. 
(II) REMEDIAL ACTION.—If the 
oversight under subclause (I) deter-
mines an inadequacy, the plan spon-
sor shall take remedial action to en-
sure that the inadequacy will be cured 
within 2 years of such determination. 
(E) 
OMBUDSPERSON.—The 
Participant 
and Plan Sponsor Advocate established under 
section 4004 of the Employee Retirement In-
come Security Act of 1974 shall act as 
ombudsperson for participants and beneficiaries 
on behalf of whom annuity contracts are pur-
chased or who are covered by a portfolio under 
this paragraph. 
(e) COLLECTION OF REPAYMENT.—Except as pro-
vided in subsection (f), the Pension Rehabilitation Admin-
istration shall make every effort to collect repayment of 
loans under this section in accordance with section 3711 
of title 31, United States Code.
(f) LOAN DEFAULT.—If a plan is unable to make any 
payment on a loan under this section when due, the Pen-
sion Rehabilitation Administration shall negotiate with the 
plan sponsor revised terms for repayment (including in-
stallment payments over a reasonable period or forgive-
ness of a portion of the loan principal), but only to the 
extent necessary to avoid insolvency in the subsequent 18 
months. 
(g) AUTHORITY TO ISSUE RULES, ETC.—The Direc-
tor of the Pension Rehabilitation Administration, in con-
sultation with the Director of the Pension Benefit Guar-
anty Corporation, the Secretary of the Treasury, and the 
Secretary of Labor, is authorized to issue rules regarding 
the form, content, and process of applications for loans 
under this section, actuarial standards and assumptions 
to be used in making estimates and projections for pur-
poses of such applications, and assumptions regarding in-
terest rates, mortality, and distributions with respect to 
a portfolio described in subsection (d)(3)(C). 
(h) REPORT TO CONGRESS ON STATUS OF CERTAIN 
PLANS WITH LOANS.—Not later than 1 year after the 
date of the enactment of this Act, and annually thereafter, 
the Director of the Pension Rehabilitation Administration 
shall submit to the Committee on Ways and Means and 
the Committee on Education and Labor of the House of
Representatives, and the Committee on Finance and the 
Committee on Health, Education, Labor and Pensions of 
the Senate, a report identifying any plan that— 
(1) has failed to make any scheduled payment 
on a loan under this section; 
(2) has negotiated revised terms for repayment 
of such loan (including any installment payments or 
forgiveness of a portion of the loan principal); or 
(3) the Director has determined is no longer 
reasonably expected to be able to— 
(A) pay benefits and the interest on the 
loan; or 
(B) accumulate sufficient funds to repay 
the principal when due. 
Such report shall include the details of any such failure, 
revised terms, or determination, as the case may be. 
(i) COORDINATION WITH TAXATION OF UNRELATED 
BUSINESS
INCOME.—Subparagraph 
(A) 
of 
section 
514(c)(6) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘or’’ at the end of clause (i); 
(2) by striking the period at the end of clause 
(ii)(II) and inserting ‘‘, or’’; and 
(3) by adding at the end the following new 
clause:
‘‘(iii) indebtedness with respect to a 
multiemployer plan under a loan made by 
the Pension Rehabilitation Administration 
pursuant to section 4 of the Rehabilitation 
for Multiemployer Pensions Act of 2019.’’. 
SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND 
FUNDING RULES. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 432 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN-
SION REHABILITATION LOANS.— 
‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL-
ITY.— 
‘‘(A) IN GENERAL.—If any employer par-
ticipating in a plan at the time the plan receives 
a loan under section 4(a) of the Rehabilitation 
for Multiemployer Pensions Act of 2019 with-
draws from the plan before the end of the 30- 
year period beginning on the date of the loan, 
the withdrawal liability of such employer shall 
be determined under the Employee Retirement 
Income Security Act of 1974—
‘‘(i) by applying section 4219(c)(1)(D) 
of the Employee Retirement Income Secu-
rity Act of 1974 as if the plan were termi-
nating by the withdrawal of every employer 
from the plan, and 
‘‘(ii) by determining the value of non-
forfeitable benefits under the plan at the 
time of the deemed termination by using 
the interest assumptions prescribed for 
purposes of section 4044 of the Employee 
Retirement Income Security Act of 1974, 
as prescribed in the regulations under sec-
tion 4281 of the Employee Retirement In-
come Security Act of 1974 in the case of 
such a mass withdrawal. 
‘‘(B) ANNUITY CONTRACTS AND INVEST-
MENT
PORTFOLIOS
PURCHASED
WITH
LOAN 
FUNDS.—Annuity 
contracts 
purchased 
and 
portfolios implemented under section 4(d)(3) of 
the Rehabilitation for Multiemployer Pensions 
Act of 2019 shall not be taken into account as 
plan assets in determining the withdrawal liabil-
ity of any employer under subparagraph (A), 
but the amount equal to the greater of—
‘‘(i) the benefits provided under such 
contracts or portfolios to participants and 
beneficiaries, or 
‘‘(ii) the remaining payments due on 
the loan under section 4(a) of such Act, 
shall be taken into account as unfunded vested 
benefits in determining such withdrawal liabil-
ity. 
‘‘(2) COORDINATION WITH FUNDING REQUIRE-
MENTS.—In the case of a plan which receives a loan 
under section 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019— 
‘‘(A) annuity contracts purchased and 
portfolios implemented under section 4(d)(3) of 
such Act, and the benefits provided to partici-
pants and beneficiaries under such contracts or 
portfolios, shall not be taken into account in de-
termining 
minimum 
required 
contributions 
under section 412, 
‘‘(B) payments on the interest and prin-
cipal under the loan, and any benefits owed in 
excess of those provided under such contracts 
or portfolios, shall be taken into account as li-
abilities for purposes of such section, and
‘‘(C) if such a portfolio is projected due to 
unfavorable investment or actuarial experience 
to be unable to fully satisfy the liabilities which 
it covers, the amount of the liabilities projected 
to be unsatisfied shall be taken into account as 
liabilities for purposes of such section.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 305 of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1085) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) SPECIAL RULES FOR PLANS RECEIVING PEN-
SION REHABILITATION LOANS.— 
‘‘(1) DETERMINATION OF WITHDRAWAL LIABIL-
ITY.— 
‘‘(A) IN GENERAL.—If any employer par-
ticipating in a plan at the time the plan receives 
a loan under section 4(a) of the Rehabilitation 
for Multiemployer Pensions Act of 2019 with-
draws from the plan before the end of the 30- 
year period beginning on the date of the loan, 
the withdrawal liability of such employer shall 
be determined— 
‘‘(i) by applying section 4219(c)(1)(D) 
as if the plan were terminating by the
withdrawal of every employer from the 
plan, and 
‘‘(ii) by determining the value of non-
forfeitable benefits under the plan at the 
time of the deemed termination by using 
the interest assumptions prescribed for 
purposes of section 4044, as prescribed in 
the regulations under section 4281 in the 
case of such a mass withdrawal. 
‘‘(B) ANNUITY CONTRACTS AND INVEST-
MENT
PORTFOLIOS
PURCHASED
WITH
LOAN 
FUNDS.—Annuity 
contracts 
purchased 
and 
portfolios implemented under section 4(d)(3) of 
the Rehabilitation for Multiemployer Pensions 
Act of 2019 shall not be taken into account in 
determining the withdrawal liability of any em-
ployer under subparagraph (A), but the amount 
equal to the greater of— 
‘‘(i) the benefits provided under such 
contracts or portfolios to participants and 
beneficiaries, or 
‘‘(ii) the remaining payments due on 
the loan under section 4(a) of such Act,
shall be taken into account as unfunded vested 
benefits in determining such withdrawal liabil-
ity. 
‘‘(2) COORDINATION WITH FUNDING REQUIRE-
MENTS.—In the case of a plan which receives a loan 
under section 4(a) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019— 
‘‘(A) annuity contracts purchased and 
portfolios implemented under section 4(d)(3) of 
such Act, and the benefits provided to partici-
pants and beneficiaries under such contracts or 
portfolios, shall not be taken into account in de-
termining 
minimum 
required 
contributions 
under section 302, 
‘‘(B) payments on the interest and prin-
cipal under the loan, and any benefits owed in 
excess of those provided under such contracts 
or portfolios, shall be taken into account as li-
abilities for purposes of such section, and 
‘‘(C) if such a portfolio is projected due to 
unfavorable investment or actuarial experience 
to be unable to fully satisfy the liabilities which 
it covers, the amount of the liabilities projected 
to be unsatisfied shall be taken into account as 
liabilities for purposes of such section.’’.
‘‘(8) any significant reduction in the number of 
active participants during the plan year preceding 
such plan year, and the reason for such reduction, 
‘‘(9) a list of employers that withdrew from the 
plan in the plan year preceding such plan year, and 
the resulting reduction in contributions, 
‘‘(10) a list of employers that paid withdrawal 
liability to the plan during the plan year preceding 
such plan year and, for each employer, a total as-
sessment of the withdrawal liability paid, the annual 
payment amount, and the number of years remain-
ing in the payment schedule with respect to such 
withdrawal liability, 
‘‘(11) any material changes to benefits, accrual 
rates, or contribution rates during the plan year pre-
ceding such plan year, and whether such changes re-
late to the terms of the loan, 
‘‘(12) details regarding any funding improve-
ment plan or rehabilitation plan and updates to such 
plan, 
‘‘(13) the number of participants during the 
plan year preceding such plan year who are active 
participants, the number of participants and bene-
ficiaries in pay status, and the number of terminated 
vested participants and beneficiaries,
‘‘(14) the amount of any financial assistance re-
ceived under section 4261 of the Employee Retire-
ment Income Security Act of 1974 to pay benefits 
during the preceding plan year, and the total 
amount of such financial assistance received for all 
preceding years, 
‘‘(15) the information contained on the most re-
cent annual funding notice submitted by the plan 
under section 101(f) of the Employee Retirement In-
come Security Act of 1974, 
‘‘(16) the information contained on the most re-
cent annual return under section 6058 and actuarial 
report under section 6059 of the plan, and 
‘‘(17) copies of the plan document and amend-
ments, other retirement benefit or ancillary benefit 
plans relating to the plan and contribution obliga-
tions under such plans, a breakdown of administra-
tive expenses of the plan, participant census data 
and distribution of benefits, the most recent actu-
arial valuation report as of the plan year, copies of 
collective bargaining agreements, and financial re-
ports, and such other information as the Secretary, 
in consultation with the Director of the Pension Re-
habilitation Administration, may require.
‘‘(b) ELECTRONIC
SUBMISSION.—The report re-
quired under subsection (a) shall be submitted electroni-
cally. 
‘‘(c) INFORMATION SHARING.—The Secretary shall 
share the information in the report under subsection (a) 
with the Secretary of Labor and the Director of the Pen-
sion Benefit Guaranty Corporation. 
‘‘(d) REPORT
TO PARTICIPANTS, BENEFICIARIES, 
AND EMPLOYERS.—Each plan sponsor required to file a 
report under subsection (a) shall, before the expiration of 
the time prescribed for the filing of such report, also pro-
vide a summary (written in a manner so as to be under-
stood by the average plan participant) of the information 
in such report to participants and beneficiaries in the plan 
and to each employer with an obligation to contribute to 
the plan.’’. 
(b) PENALTY.—Subsection (e) of section 6652 of the 
Internal Revenue Code of 1986 is amended— 
(1) by inserting ‘‘, 6059A (relating to reports of 
plans receiving pension rehabilitation loans)’’ after 
‘‘deferred compensation)’’; 
(2) by inserting ‘‘($100 in the case of failures 
under section 6059A)’’ after ‘‘$25’’; and 
(3) by adding at the end the following: ‘‘In the 
case of a failure with respect to section 6059A, the
amount imposed under this subsection shall not be 
paid from the assets of the plan.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part III of subchapter A of chapter 61 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 6059A. Reports of plans receiving pension rehabilitation loans.’’. 
SEC. 8. PBGC FINANCIAL ASSISTANCE. 
(a) IN GENERAL.—Section 4261 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1431) 
is amended by adding at the end the following new sub-
section: 
‘‘(d)(1) The plan sponsor of a multiemployer plan— 
‘‘(A) which is in critical and declining status 
(within the meaning of section 305(b)(6)) as of the 
date of the enactment of this subsection, or with re-
spect to which a suspension of benefits has been ap-
proved under section 305(e)(9) as of such date; 
‘‘(B) which, as of such date of enactment, is in 
critical status (within the meaning of section 
305(b)(2)), has a modified funded percentage of less 
than 40 percent (as defined in section 4(a)(1) of the 
Rehabilitation for Multiemployer Pensions Act of 
2019), and has a ratio of active to inactive partici-
pants which is less than 2 to 5; or
‘‘(C) which is insolvent for purposes of section 
418E of the Internal Revenue Code of 1986 as of 
such date of enactment, if the plan became insolvent 
after December 16, 2014, and has not been termi-
nated; 
and which is applying for a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pensions Act of 2019 
may also apply to the corporation for financial assistance 
under this subsection, by jointly submitting such applica-
tions in accordance with section 4(d)(2) of such Act. The 
application for financial assistance under this subsection 
shall demonstrate, based on projections by the plan actu-
ary, that after the receipt of the anticipated loan amount 
under section 4(a) of such Act, the plan will still become 
(or remain) insolvent within the 30-year period beginning 
on the date of the loan. 
‘‘(2) In reviewing an application under paragraph 
(1), the corporation shall review the determinations and 
demonstrations submitted with the loan application under 
section 4(c) of the Rehabilitation for Multiemployer Pen-
sions Act of 2019 and provide guidance regarding such 
determinations and demonstrations prior to approving any 
application for financial assistance under this subsection. 
The corporation may deny any application if any such de-
terminations or demonstrations (or any underlying as-
sumptions) are unreasonable, or inconsistent with rules 
issued by the corporation, and the plan and the corpora-
tion are unable to reach agreement on such determinations 
or demonstrations. The corporation shall prescribe any 
such rules or guidance not later than December 31, 2019. 
‘‘(3)(A) In the case of a plan described in paragraph 
(1)(A) or (1)(B), the total financial assistance provided 
under this subsection shall be an amount equal to the 
smallest portion of the loan amount with respect to the 
plan under paragraph (1)(A) or (1)(B)(ii) of section 4(d) 
of the Rehabilitation for Multiemployer Pensions Act of 
2019 (determined without regard to paragraph (2) there-
of) that, if provided as financial assistance under this sub-
section instead of a loan, would allow the plan to avoid 
the projected insolvency. 
‘‘(B) Such amount shall not exceed the present value 
of the maximum guaranteed benefit with respect to all 
participants and beneficiaries of the plan under sections 
4022A and 4022B. For purposes of the preceding sen-
tence, the present value of the maximum guaranteed ben-
efit amount shall be determined by disregarding any loan 
available from the Pension Rehabilitation Administration 
and shall be determined as if the plan were insolvent on 
the date of the application, and the present value of the 
maximum guaranteed benefit amount with respect to such
participants and beneficiaries may be calculated in the ag-
gregate, rather than by reference to the benefit of each 
such participant or beneficiary. 
‘‘(4) In the case of a plan described in paragraph 
(1)(C), the financial assistance provided pursuant to such 
application under this subsection shall be the present value 
of the amount (determined by the plan actuary and sub-
mitted on the application) that, if such amount were paid 
by the corporation in combination with the loan and any 
other assistance being provided to the plan by the corpora-
tion at the time of the application, would enable the plan 
to emerge from insolvency and avoid any other insolvency 
projected under paragraph (1). 
‘‘(5)(A)(i) Except as provided in subparagraph (B), 
if the corporation determines at the time of approval, or 
at the beginning of any plan year beginning thereafter, 
that the plan’s 5-year expenditure projection (determined 
without regard to loan payments described in clause 
(iii)(III)) exceeds the fair market value of the plan’s as-
sets, the corporation shall (subject to the total amount of 
financial assistance approved under this subsection) pro-
vide such assistance in an amount equal to the lesser of— 
‘‘(I) the amount by which the plan’s 5-year 
expenditure projection exceeds such fair market 
value; or
‘‘(II) the plan’s expected expenditures for 
the plan year. 
‘‘(ii) For purposes of this subparagraph, the term ‘5- 
year expenditure projection’ means, with respect to any 
plan for a plan year, an amount equal to 500 percent of 
the plan’s expected expenditures for the plan year. 
‘‘(iii) For purposes of this subparagraph, the term 
‘expected expenditures’ means, with respect to any plan 
for a plan year, an amount equal to the sum of— 
‘‘(I) expected benefit payments for the plan 
year; 
‘‘(II) expected administrative expense payments 
for the plan year; plus 
‘‘(III) payments on the loan scheduled during 
the plan year pursuant to the terms of the loan 
under section 4(b) of the Rehabilitation for Multiem-
ployer Pensions Act of 2019. 
‘‘(iv) For purposes of this subparagraph, in the case 
of any plan year during which a plan is approved for a 
loan under section 4 of such Act, but has not yet received 
the proceeds, such proceeds shall be included in deter-
mining the fair market value of the plan’s assets for the 
plan year. The preceding sentence shall not apply in the 
case of any plan that for the plan year beginning in 2015 
was certified pursuant to section 305(b)(3) as being in
critical and declining status, and had more than 300,000 
participants. 
‘‘(B) The financial assistance under this subsection 
shall be provided in a lump sum if the plan sponsor dem-
onstrates in the application, and the corporation deter-
mines, that such a lump sum payment is necessary for 
the plan to avoid the insolvency to which the application 
relates. In the case of a plan described in paragraph 
(1)(C), such lump sum shall be provided not later than 
December 31, 2020. 
‘‘(6) Subsections (b) and (c) shall apply to financial 
assistance under this subsection as if it were provided 
under subsection (a), except that the terms for repayment 
under subsection (b)(2) shall not require the financial as-
sistance to be repaid before the date on which the loan 
under section 4(a) of the Rehabilitation for Multiemployer 
Pensions Act of 2019 is repaid in full. 
‘‘(7) The corporation may forgo repayment of the fi-
nancial assistance provided under this subsection if nec-
essary to avoid any suspension of the accrued benefits of 
participants.’’. 
(b) APPROPRIATIONS.—There is appropriated to the 
Director of the Pension Benefit Guaranty Corporation 
such sums as may be necessary for each fiscal year to pro-
vide the financial assistance described in section 4261(d)
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1431(d)) (as added by this section) (including 
necessary administrative and operating expenses relating 
to such assistance). 
SEC. 
9. 
MODIFICATION 
OF 
REQUIRED 
DISTRIBUTION 
RULES FOR DESIGNATED BENEFICIARIES. 
(a) MODIFICATION OF RULES WHERE EMPLOYEE 
DIES BEFORE ENTIRE DISTRIBUTION.— 
(1) IN GENERAL.—Section 401(a)(9) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(H) SPECIAL RULES FOR CERTAIN DE-
FINED CONTRIBUTION PLANS.—In the case of a 
defined contribution plan, if an employee dies 
before the distribution of the employee’s entire 
interest— 
‘‘(i) IN GENERAL.—Except in the case 
of a beneficiary who is not a designated 
beneficiary, subparagraph (B)(ii)— 
‘‘(I) shall be applied by sub-
stituting ‘10 years’ for ‘5 years’, and 
‘‘(II) shall apply whether or not 
distributions of the employee’s inter-
ests have begun in accordance with 
subparagraph (A).
‘‘(ii) EXCEPTION ONLY FOR ELIGIBLE 
DESIGNATED
BENEFICIARIES.—Subpara-
graph (B)(iii) shall apply only in the case 
of an eligible designated beneficiary. 
‘‘(iii) RULES UPON DEATH OF ELIGI-
BLE DESIGNATED BENEFICIARY.—If an el-
igible designated beneficiary dies before the 
portion of the employee’s interest to which 
this subparagraph applies is entirely dis-
tributed, the exception under clause (iii) 
shall not apply to any beneficiary of such 
eligible designated beneficiary and the re-
mainder of such portion shall be distrib-
uted within 10 years after the death of 
such eligible designated beneficiary. 
‘‘(iv) APPLICATION TO CERTAIN ELI-
GIBLE RETIREMENT PLANS.—For purposes 
of applying the provisions of this subpara-
graph in determining amounts required to 
be distributed pursuant to this paragraph, 
all eligible retirement plans (as defined in 
section 402(c)(8)(B), other than a defined 
benefit plan described in clause (iv) or (v) 
thereof or a qualified trust which is a part
of a defined benefit plan) shall be treated 
as a defined contribution plan.’’. 
(2) DEFINITION
OF
ELIGIBLE
DESIGNATED 
BENEFICIARY.—Section 401(a)(9)(E) of such Code 
is amended to read as follows: 
‘‘(E) DEFINITIONS AND RULES RELATING 
TO DESIGNATED BENEFICIARY.—For purposes 
of this paragraph— 
‘‘(i) DESIGNATED BENEFICIARY.—The 
term ‘designated beneficiary’ means any 
individual designated as a beneficiary by 
the employee. 
‘‘(ii) ELIGIBLE
DESIGNATED
BENE-
FICIARY.—The term ‘eligible designated 
beneficiary’ means, with respect to any em-
ployee, any designated beneficiary who is— 
‘‘(I) the surviving spouse of the 
employee, 
‘‘(II) subject to clause (iii), a 
child of the employee who has not 
reached majority (within the meaning 
of subparagraph (F)), 
‘‘(III) disabled (within the mean-
ing of section 72(m)(7)),