(1) by inserting after the first sentence the fol-
lowing new sentences: ‘‘The court may not enter 
such a decree unless that court has found that rea-
sonable efforts to consider available alternatives to 
termination (including, but not limited to, alter-
natives described in paragraph (4)) have been under-
taken by the plan sponsor (and, in the case of a plan 
maintained pursuant to a collective bargaining 
agreement, have been undertaken by the bargaining 
parties in good faith bargaining). There is a pre-
sumption that a plan need not be terminated if the 
plan sponsor can continue in business, outside a case 
under title 11, United States Code (or under any 
similar law of a State or a political subdivision of a 
State) in which reorganization is sought, without 
terminating the plan.’’; and 
(2) in the sentence following the sentences in-
serted by paragraph (1), by striking ‘‘the preceding 
sentence’’ and inserting ‘‘the first sentence of this 
paragraph,’’. 
(c) RIGHT TO INTERVENE TO CHALLENGE COURT 
DECREE.—Section 4042(c) of such Act (as amended by 
subsection (b)) is further amended by inserting after the 
fourth sentence the following new sentence: ‘‘If any party 
consisting of the plan sponsor, a plan participant, or (in 
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the case of a plan maintained pursuant to a collective bar-
gaining agreement) the employee organization rep-
resenting plan participants for purposes of collective bar-
gaining disagrees with any such determination by the cor-
poration, such party may intervene in the proceeding to 
challenge the determinations of the corporation.’’. 
(d) CONSIDERATION
OF ALTERNATIVES
BY COR-
PORATION AND PLAN SPONSOR.—Section 4042(c) of such 
Act (as amended by the preceding provisions of this sec-
tion) is further amended by adding after the seventh sen-
tence the following: ‘‘The corporation and the plan admin-
istrator may proceed with such an agreement only if they 
have made reasonable efforts to consider available alter-
natives to termination (including, but not limited to, alter-
natives described in paragraph (4) of this subsection) and 
the plan participants and beneficiaries have been provided 
with at least 60 days notice before such agreement is given 
effect. During such 60-day period, a participant or bene-
ficiary of the plan or an employee organization rep-
resenting such participants or beneficiaries may bring an 
action in the appropriate court to seek appropriate equi-
table relief if such reasonable efforts have not been 
made.’’. 
(e) EFFORTS BY THE CORPORATION AT CONSULTA-
TION WITH PARTIES.—Section 4042(c) of such Act is 
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amended by adding at the end the following new para-
graph: 
‘‘(4) CONSULTATION REGARDING REASONABLE 
AVAILABLE ALTERNATIVES TO TERMINATION.— 
‘‘(A) IN GENERAL.—Prior to making any 
determination referred to in the preceding pro-
visions of this subsection, the corporation shall 
consult with the plan participants and (in the 
case of a plan maintained pursuant to a collec-
tive bargaining agreement) the employee orga-
nization representing plan participants for pur-
poses of collective bargaining to determine 
whether there are any reasonable available al-
ternatives to termination (including, but not 
limited to, alternatives described in subpara-
graph (B)). 
‘‘(B) 
REASONABLE
ALTERNATIVES
TO 
TERMINATION.—The reasonable alternatives to 
termination referred to in subparagraph (A) 
consist of measures which are in the best inter-
est of plan participants and which include (but 
are not limited to) the following: — 
‘‘(i) Financing or loans sought by any 
member of the plan sponsor’s controlled 
group, with or without assistance from the 
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corporation, in order to obtain plan financ-
ing, including back-up guarantees to any 
such financing which the corporation is 
hereby authorized to provide for such pur-
pose. 
‘‘(ii) New plan structures agreed to by 
the parties, such as transfer of plan liabil-
ities to multiemployer plans, new benefit 
formulas for new hires or non-vested par-
ticipants, or other plan restructuring alter-
natives agreed to by the parties. 
‘‘(iii) Reinsurance which the corpora-
tion is hereby authorized to obtain for the 
plan. 
‘‘(iv) An agreement by the parties au-
thorizing alternative funding schedules, ap-
proved by the corporation, which would 
modify plan funding, subject to the min-
imum funding requirements for the plan 
under part 3 of subtitle B of title I. 
‘‘(v) Purchase by the plan sponsor of 
an annuity contract to cover liabilities of 
the plan, which the corporation is hereby 
authorized to guarantee as necessary to se-
cure such a contract.’’. 
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(f) NOTICE OF RIGHT TO CHALLENGE DETERMINA-
TIONS RELATING TO PLAN TERMINATION.— 
(1) 
PROCEDURE
FOR
STANDARD
TERMI-
NATIONS.—Section 4041(b)(2)(B) of such Act (29 
U.S.C. 1341(b)(2)(B)) is amended in clause (i) by 
striking ‘‘and’’ at the end, in clause (ii)(V) by strik-
ing ‘‘require.’’ and inserting ‘‘require, and’’, and by 
inserting after clause (ii) the following new clause: 
‘‘(iii) describing the right of partici-
pants and beneficiaries to challenge deter-
minations under this section.’’. 
(2) TERMINATION PROCEEDINGS FOR DISTRESS 
TERMINATIONS AND TERMINATIONS COMMENCED BY 
THE PBGC.—Section 4042(a) of such Act (29 U.S.C. 
1342(a)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Prior to commencing pro-
ceedings under this section with respect to any plan, 
the corporation shall provide notice to plan partici-
pants and beneficiaries of the right to challenge de-
terminations under this section, written in a manner 
likely to be understood by the participant or bene-
ficiary.’’. 
SEC. 302. EFFECTIVE DATE OF TITLE. 
The amendments made by this title shall apply with 
respect to any plans undergoing termination proceedings 
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