1647 
rity Act of 1974 on the date of the suspen-
sion. 
‘‘(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
1648 
‘‘(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 of the Employee Retire-
ment Income Security Act of 1974), shall be 
reasonably estimated to achieve, but not 
materially exceed, the level that is necessary 
to avoid insolvency. 
‘‘(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 of the Employee Retire-
ment Income Security Act of 1974, the sus-
pension of benefits 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,
1649 
that may include one or more of the fol-
lowing: 
‘‘(I) Age and life expectancy. 
‘‘(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
1650 
benefit reductions for participants in 
and out of pay status. 
‘‘(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) of the Em-
ployee Retirement Income Security Act 
of 1974 or an agreement 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
1651 
‘‘(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 
date of enactment of the Multiemployer 
Pension Reform Act of 2014— 
‘‘(aa) withdrawn from the 
plan in a complete withdrawal 
under section 4203 of the Em-
ployee Retirement Income Secu-
rity Act of 1974 and has paid the 
full amount of the employer’s 
withdrawal liability under section 
4201(b)(1) of such Act 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-
1652 
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 
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-
1653 
jected to avoid insolvency indefinitely 
under section 418E. 
‘‘(ii) EQUITABLE
DISTRIBUTION
OF 
BENEFIT IMPROVEMENTS.— 
‘‘(I) LIMITATION.—The projected 
value of the total liabilities for benefit 
improvements for participants and 
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
1654 
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-
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
1655 
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 
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 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-
1656 
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 
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) of the Em-
ployee Retirement Income Security Act 
of 1974) under the plan, and
1657 
‘‘(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— 
‘‘(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,
1658 
‘‘(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-
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
1659 
‘‘(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 
fulfill the requirement for notice of a sig-
nificant reduction in benefits described in 
section 4980F. 
‘‘(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-
1660 
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 
shall approve, in consultation with the Pen-
sion Benefit Guaranty Corporation and the 
Secretary of Labor, the application upon 
finding that the plan is eligible for the sus-
pensions and has satisfied the criteria of 
subparagraphs (C), (D), (E), and (F). 
‘‘(ii) SOLICITATION
OF
COMMENTS.— 
Not later than 30 days after receipt of the 
application under clause (i), the Secretary 
of the Treasury, in consultation with the 
Pension Benefit Guaranty Corporation and 
the Secretary of Labor, shall publish a no-
tice in the Federal Register soliciting com-
ments from contributing employers, em-
ployee organizations, and participants and 
beneficiaries of the plan for which an appli-
cation was made and other interested par-
ties. The application for approval of the 
suspension of benefits shall be published on
1661 
the website of the Department of the Treas-
ury. 
‘‘(iii) REQUIRED ACTION; DEEMED AP-
PROVAL.—The Secretary of the Treasury, in 
consultation with the Pension Benefit Guar-
anty Corporation and the Secretary of 
Labor, shall approve or deny any applica-
tion for suspensions of benefits under this 
paragraph within 225 days after the sub-
mission of such application. An application 
for suspension of benefits shall be deemed 
approved unless, within such 225 days, the 
Secretary of the Treasury notifies the plan 
sponsor that it has failed to satisfy one or 
more of the criteria described in this para-
graph. If the Secretary of the Treasury, in 
consultation with the Pension Benefit Guar-
anty Corporation and the Secretary of 
Labor, rejects a plan sponsor’s application, 
the Secretary of the Treasury shall provide 
notice to the plan sponsor detailing the spe-
cific reasons for the rejection, including ref-
erence to the specific requirement not satis-
fied. Approval or denial by the Secretary of 
the Treasury, in consultation with the Pen-
1667 
Income Security Act of 1974 
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 of the Em-
ployee Retirement Income Security Act 
of 1974 may submit recommendations 
to the Secretary of the Treasury with 
respect to the suspension or any revi-
sions to the suspension. 
‘‘(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