I 
115TH CONGRESS 
1ST SESSION H. R. 2412 
To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to modify certain provisions relating 
to multiemployer pensions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2017 
Ms. KAPTUR (for herself, Mr. RYAN of Ohio, Ms. DELAURO, Mrs. DINGELL, 
Ms. SLAUGHTER, Mr. CLAY, Ms. SCHAKOWSKY, Ms. NORTON, Mr. 
GARAMENDI, Mr. NOLAN, Mr. TONKO, Mr. WALZ, Ms. JAYAPAL, Mr. 
YARMUTH, Ms. MOORE, Mr. GENE GREEN of Texas, Mr. RASKIN, Mr. 
VEASEY, Mr. JEFFRIES, Ms. MCCOLLUM, Mr. COHEN, Ms. JACKSON 
LEE, Ms. LEE, Mr. VISCLOSKY, Mr. JOHNSON of Georgia, Mrs. BEATTY, 
and Ms. HANABUSA) introduced the following bill; which was referred to 
the Committee on Education and the Workforce, and in addition to the 
Committees on the Judiciary, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To amend the Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 to 
modify certain provisions relating to multiemployer pen-
sions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keep Our Pension 
Promises Act’’. 
SEC. 2. RESTORING ANTI-CUTBACK PROVISIONS. 
Section 201 of the Multiemployer Pension Reform 
Act of 2014 (division O of Public Law 113–235) and the 
amendments made by such section are repealed, and the 
Employee Retirement Income Security Act of 1974 and 
the Internal Revenue Code of 1986 shall be applied as if 
such section and amendments had never been enacted. 
SEC. 3. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS. 
(a) IN GENERAL.—Section 4233 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1413), 
as amended by section 122 of the Multiemployer Pension 
Reform Act of 2014 (division O of Public Law 113–235), 
is amended to read as follows: 
‘‘SEC. 4233. PARTITIONS OF ELIGIBLE MULTIEMPLOYER 
PLANS. 
‘‘(a)(1) Upon the application by the plan sponsor of 
an eligible multiemployer plan for a partition of the plan, 
the corporation may order a partition of the plan in ac-
cordance with this section. The corporation shall make a 
determination regarding the application, in accordance 
with regulations promulgated by the corporation, not later 
than 270 days after— 
‘‘(A) the date such application was filed; or 
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enue Code of 1986, and has made (or is making) 
benefit adjustments under section 432(e)(8) of such 
Code to reduce the risk of insolvency; 
‘‘(3) 20 percent or more of the amount by 
which the liabilities of the plan exceed the value of 
plan assets is attributable to the service of partici-
pants whose employers— 
‘‘(A) withdrew from the plan prior to the 
date of enactment of the Keep Our Pension 
Promises Act; and 
‘‘(B) failed to pay (or are delinquent with 
respect to paying) the full amount of the em-
ployer’s withdrawal liability under section 
4201(b)(1) or as otherwise determined under 
an agreement with the plan; 
‘‘(4) the corporation reasonably expects that— 
‘‘(A) a partition of the plan will reduce the 
corporation’s expected long-term loss with re-
spect to the plan; and 
‘‘(B) a partition of the plan is necessary 
for the plan to remain or become solvent; and 
‘‘(5) the corporation certifies to Congress that 
after partition the corporation will continue to have 
the ability to meet existing financial assistance obli-
gations to other plans (including any liabilities asso-
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ciated with multiemployer plans that are insolvent or 
that are projected to become insolvent within 10 
years). 
‘‘(c)(1) A partition under this section shall consist of 
a transfer to the plan created by the partition order of 
benefits to which eligible participants and beneficiaries 
were entitled under the plan that was partitioned, in an 
amount not to exceed the amount that would be guaran-
teed under section 4022A if the plan were insolvent as 
of the date of the partition order. 
‘‘(2) The corporation’s partition order shall provide 
for an annual transfer by the corporation to the plan cre-
ated by the partition order of an amount equal to the year-
ly benefits that would be guaranteed under section 4022A 
to the eligible participants and beneficiaries if the plan 
were insolvent as of the date of the partition order. 
‘‘(3)(A) Where practicable, the initial transfer in ac-
cordance with paragraph (2) shall be completed at least 
60 days prior to the plan year that immediately follows 
the partition start date. The partition order shall require 
that the initial transfer be sufficient to satisfy the guaran-
teed benefits in the first plan year of the partitioned plan. 
‘‘(B) Subsequent transfers in accordance with para-
graph (2) shall be completed at least 60 days prior to the 
first day of each succeeding plan year. 
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‘‘(d)(1)(A) The plan created by the partition order 
is a successor plan to which section 4022A applies. 
‘‘(B) At the discretion of the plan sponsor, the plan 
created by the partition order may remain a part of the 
plan that was partitioned or be maintained as a separate 
plan. 
‘‘(2)(A) The plan sponsor and the administrator of 
an eligible multiemployer plan prior to the partition shall 
be the plan sponsor and the administrator, respectively, 
of the plan created by the partition order, and shall adopt 
reasonable procedures to reduce administrative expenses 
and to coordinate benefit payments and communications 
with the participants and beneficiaries in the plan created 
by the partition order. 
‘‘(B) Benefit payments equal to the amount of an eli-
gible participant or beneficiary’s guaranteed benefits shall 
be paid to such participant or beneficiary and may be— 
‘‘(i) paid separately by the plan created by the 
partition order; or 
‘‘(ii) paid in a single, monthly payment by the 
plan that was partitioned. 
‘‘(3) In the event an employer withdraws from the 
plan that was partitioned, withdrawal liability shall be 
computed under section 4201 with respect to both the plan 
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that was partitioned and the plan created by the partition 
order. 
‘‘(e) In addition to the payment of guaranteed bene-
fits under subsection (d)(2)(B), each eligible participant 
or beneficiary of the plan created by the partition order 
shall receive a monthly benefit for each month the benefit 
is in pay status in an amount that— 
‘‘(1) the corporation, in consultation with the 
Participant and Plan Sponsor Advocate, determines 
to be fair to the plan, the participant or beneficiary, 
the employers, and the corporation; and 
‘‘(2) when aggregated with the payment under 
subsection (d)(2)(B), results in a monthly benefit 
that is at least equal to the lesser of— 
‘‘(A) the monthly nonforfeitable benefit for 
such participant or beneficiary payable under 
the plan that was partitioned; or 
‘‘(B) 80 percent of the maximum benefit 
commencing at age 65 guaranteed under sec-
tion 4022(a) for participants and beneficiaries 
in terminated single employer plans, unreduced 
for early retirement. 
Such monthly benefit may be combined with the monthly 
payment under subsection (d)(2)(B)(ii). 
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‘‘(f)(1) The corporation shall establish a legacy fund 
for the purposes of funding the administrative and benefit 
costs to the corporation arising from partitions under this 
section, as described in paragraph (2). 
‘‘(2) Any administrative and benefit costs to the cor-
poration arising from a partition ordered under this sec-
tion in excess of amounts available in such legacy fund 
shall be paid from the fund for basic benefits guaranteed 
for multiemployer plans. 
‘‘(g) Only one partition order shall be issued with re-
spect to each eligible multiemployer plan. 
‘‘(h) For purposes of this subsection, the term ‘eligi-
ble participant or beneficiary’ means a participant or ben-
eficiary of an eligible multiemployer plan that is parti-
tioned in accordance with a petition order under this sec-
tion, and who is an employee or beneficiary of an employee 
of an employer that is described in subsection (b)(3). 
‘‘(i) Not later than 14 days after the issuance of a 
partition order under this section, the corporation shall 
provide notice of such order to the Committee on Finance 
of the Senate, the Committee on Health, Education, 
Labor, and Pensions of the Senate, the Committee on 
Education and the Workforce of the House of Representa-
tives, the Committee on Ways and Means of the House 
of Representatives, and to all eligible participants or bene-
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ficiaries whose guaranteed benefits will be paid directly or 
indirectly by the plan created by the partition order.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to plan years begin-
ning after the date of enactment of this Act. 
(c) TRANSFERS TO LEGACY FUND.—The Secretary 
of the Treasury shall from time to time transfer from the 
general fund of the Treasury to the legacy fund estab-
lished under section 4233(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1413(f)(1)) 
(as amended by subsection (a)) amounts equal to the in-
crease in revenues to the Treasury by reason of the 
amendments made by sections 6 and 7 of this Act. 
(d) TRANSFERS BETWEEN FUNDS OF THE PBGC.— 
Section 4005 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1305) is amended by adding at 
the end the following: 
‘‘(i)(1) An eighth fund is established under section 
4233(f) and credited with the amounts described in sec-
tion 3(c) of the Keep Our Pension Promises Act. 
‘‘(2) Notwithstanding subsection (g), the corporation 
may transfer amounts into the legacy fund established 
under section 4233(f)(1) from other funds established 
under this section, as the corporation determines appro-
priate.’’. 
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SEC. 4. EMPLOYER WITHDRAWALS RELATING TO MULTIEM-
PLOYER PLANS. 
The matter preceding paragraph (1) of section 
4225(b) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1405(b)) is amended by inserting ‘‘, 
including an employer undergoing liquidation under chap-
ter 7 of title 11, United States Code, or similar provisions 
of State law,’’ after ‘‘dissolution,’’. 
SEC. 5. PRIORITIES OF CLAIMS IN BANKRUPTCY. 
(a) IN GENERAL.—Section 507(a) of title 11, United 
States Code, is amended— 
(1) by redesignating paragraphs (1) through 10 
as paragraphs (2) through (11), respectively; 
(2) by inserting before paragraph (2) (as redes-
ignated) the following: 
‘‘(1) First, withdrawal liability determined 
under part 1 of subtitle E of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1381 et seq.).’’; 
(3) in the matter preceding subparagraph (A) 
of paragraph (2) (as redesignated), by striking 
‘‘First:’’ and inserting ‘‘Second:’’; 
(4) in paragraph (3) (as redesignated), by strik-
ing ‘‘Second,’’ and inserting ‘‘Third,’’; 
(5) in paragraph (4) (as redesignated), by strik-
ing ‘‘Third,’’ and inserting ‘‘Fourth,’’; 
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(6) in the matter preceding subparagraph (A) 
of paragraph (5) (as redesignated), by striking 
‘‘Fourth,’’ and inserting ‘‘Fifth,’’; 
(7) in the matter preceding subparagraph (A) 
of paragraph (6) (as redesignated), by striking 
‘‘Fifth,’’ and inserting ‘‘Sixth,’’; 
(8) in the matter preceding subparagraph (A) 
of paragraph (7) (as redesignated), by striking 
‘‘Sixth,’’ and inserting ‘‘Seventh,’’; 
(9) in paragraph (8) (as redesignated), by strik-
ing ‘‘Seventh,’’ and inserting ‘‘Eighth,’’; 
(10) in the matter preceding subparagraph (A) 
of paragraph (9) (as redesignated), by striking 
‘‘Eighth,’’ and inserting ‘‘Ninth,’’; 
(11) in paragraph (10) (as redesignated), by 
striking ‘‘Ninth,’’ and inserting ‘‘Tenth,’’; and 
(12) in paragraph (11) (as redesignated), by 
striking ‘‘Tenth,’’ and inserting ‘‘Eleventh,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 502(i) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(8)’’ 
and inserting ‘‘section 507(a)(9)’’. 
(2) Section 503(b)(1)(B)(i) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’. 
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(3) Section 507(d) of title 11, United States 
Code, is amended by striking ‘‘(a)(1), (a)(4), (a)(5), 
(a)(6), (a)(7), (a)(8), or (a)(9)’’ and inserting 
‘‘(a)(2), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9), or 
(a)(10)’’. 
(4) Section 523(A) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(3) or 
507(a)(8)’’ and inserting ‘‘section 507(a)(4) or 
507(a)(9)’’. 
(5) Section 724 of title 11, United States Code, 
is amended— 
(A) in subsection (b)(2), by striking ‘‘sec-
tion 507(a)(1)(C) or 507(a)(2)’’ and inserting 
‘‘section 507(a)(2)(C) or 507(a)(3)’’; and 
(B) in subsection (f)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(4)’’ and inserting ‘‘section 
507(a)(5)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(5)’’ and inserting ‘‘section 
507(a)(6)’’. 
(6) Section 726(b) of title 11, United States 
Code, is amended by striking ‘‘paragraph (1), (2), 
(3), (4), (5), (6), (7), (8), (9), or (10) of section 
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507(a)’’ and inserting ‘‘paragraphs (2) through (11) 
of section 507(a)’’. 
(7) Section 752(a) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(2)’’ 
and inserting ‘‘section 507(a)(3)’’. 
(8) Section 766 of title 11, United States Code, 
is amended— 
(A) in subsection (h), by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’; 
and 
(B) in subsection (i)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’. 
(9) Section 901 of title 11, United States Code, 
is amended by striking ‘‘507(a)(2)’’ and inserting 
‘‘507(a)(3)’’. 
(10) Section 943(b)(5) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(11) Section 1123(a)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
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507(a)(2), 507(a)(3), or 507(a)(8)’’ and inserting 
‘‘section 507(a)(3), 507(a)(4), or 507(a)(9)’’. 
(12) Section 1129(a)(9) of title 11, United 
States Code, is amended— 
(A) in subparagraph (A), by striking ‘‘sec-
tion 507(a)(3) or 507(a)(4)’’ and inserting 
‘‘section 507(a)(4) or 507(a)(5)’’; 
(B) in the matter preceding clause (i) of 
subparagraph 
(B), 
by 
striking 
‘‘section 
507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6), or 
507(a)(7)’’ and inserting ‘‘section 507(a)(2), 
507(a)(5), 507(a)(6), 507(a)(7), or 507(a)(8)’’; 
(C) in the matter preceding clause (i) of 
subparagraph 
(C), 
by 
striking 
‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’; 
and 
(D) in subparagraph (D), by striking ‘‘sec-
tion 
507(a)(8)’’ 
and 
inserting 
‘‘section 
507(a)(9)’’. 
(13) Section 1222(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘507(a)(2)(B)’’. 
(14) Section 1226(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
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(15) Section 1322(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘section 507(a)(2)(B)’’. 
(16) Section 1326(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(17) Section 1328(a)(2) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)(C)’’ and inserting ‘‘section 507(a)(9)(C)’’. 
SEC. 6. LIMITATION OF NONRECOGNITION OF LIKE-KIND 
EXCHANGES. 
(a) IN GENERAL.—Paragraph (2) of section 1031(a) 
of the Internal Revenue Code of 1986 is amended— 
(1) by redesignating subparagraphs (A), (B), 
(C), (D), (E), and (F) as clauses (i), (ii), (iii), (iv), 
(v), and (vi), and by moving such clauses 2 ems to 
the right, 
(2) by moving the flush language after the first 
sentence 2 ems to the right, 
(3) by striking ‘‘(2) EXCEPTION.—This sub-
section’’ and inserting ‘‘(2) EXCEPTIONS.— 
‘‘(A) EXCLUDED
PROPERTY.—This sub-
section’’, and 
(4) by adding at the end the following new sub-
paragraph: 
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