I 
115TH CONGRESS 
1ST SESSION H. R. 4444 
To amend the Internal Revenue Code of 1986 to create a Pension Rehabilita-
tion Trust Fund, to establish a Pension Rehabilitation Administration 
within the Department of the Treasury to make loans to multiemployer 
defined benefit plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 16, 2017 
Mr. NEAL (for himself, Mr. LEVIN, Mr. THOMPSON of California, Mr. CROW-
LEY, Mr. DANNY K. DAVIS of Illinois, Mr. HIGGINS of New York, Mrs. 
BUSTOS, Mr. CARSON of Indiana, Ms. CASTOR of Florida, Mr. CICILLINE, 
Mr. CLEAVER, Mr. CLYBURN, Mrs. DINGELL, Mr. ESPAILLAT, Mr. 
EVANS, Ms. FUDGE, Ms. BONAMICI, Mr. HASTINGS, Ms. KAPTUR, Mr. 
KILDEE, Ms. WILSON of Florida, Ms. MAXINE WATERS of California, Ms. 
VELA´ZQUEZ, Mr. VELA, Mr. SCOTT of Virginia, Ms. SCHAKOWSKY, Mr. 
SABLAN, Mr. RYAN of Ohio, Ms. BLUNT ROCHESTER, Miss RICE of New 
York, Mr. PALLONE, Ms. NORTON, Mr. NORCROSS, Mr. NOLAN, Mrs. 
NAPOLITANO, Ms. MOORE, Mrs. CAROLYN B. MALONEY of New York, 
Mr. LYNCH, Mrs. BEATTY, and Mr. GENE GREEN of Texas) introduced 
the following bill; which was referred to the Committee on Education and 
the Workforce, and in addition to the Committees on Ways and Means, 
and Appropriations, 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 concerned 
A BILL 
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. 
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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’’. 
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-
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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. 
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(c) TRANSFER OF FUNDS.—The Secretary of the 
Treasury may transfer for any fiscal year, from unobli-
gated amounts appropriated to the Department of the 
Treasury, to the Pension Rehabilitation Administration 
such sums as may be reasonably necessary for the admin-
istrative and operating expenses of the Pension Rehabilita-
tion Administration. 
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 such Trust 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(b) of the Reha-
bilitation for Multiemployer Pensions Act. 
‘‘(2) LOAN INTEREST AND PRINCIPAL.— 
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‘‘(A) IN GENERAL.—The Director of the 
Pension Rehabilitation Administration estab-
lished under section 2 of the Rehabilitation for 
Multiemployer Pensions Act shall deposit in the 
Fund any amounts received from a plan as pay-
ment 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) TRANSFERS FROM SECRETARY.—The Di-
rector of the Pension Rehabilitation Administration 
shall deposit in the Fund any amounts received from 
the Secretary under section 2(c) of such Act. 
‘‘(4) 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, 
‘‘(2) for the payment of principal and interest 
on bonds issued under section 6 of such Act, and 
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‘‘(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 such 
Act), including any plan with respect to 
which a suspension of benefits has been 
approved under section 432(e)(9) of such 
Code and section 305(e)(9) of such Act; or 
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(ii) are insolvent for purposes of sec-
tion 418E of such Code, if they became in-
solvent after December 16, 2014, and have 
not been terminated; and 
(B) subject to subsection (b), to establish 
appropriate terms for such loans. 
(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 March 31, 2018, with 
guidance regarding such program to be promul-
gated by the Director of the Pension Rehabilita-
tion Administration, in consultation with the 
Pension Benefit Guaranty Corporation and the 
Department of Labor, not later than June 1, 
2018. 
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(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.—The terms of any loan made 
under subsection (a) shall state that— 
(1) the plan shall make payments of interest on 
the loan for a period of 29 years beginning on the 
date of the loan; 
(2) final payment of interest and principal shall 
be due in the 30th year after the date of the loan; 
and 
(3) as a condition of the loan, the plan sponsor 
stipulates that— 
(A) except as provided in subparagraph 
(B), the plan will not increase benefits, allow 
any employer participating in the plan to re-
duce its contributions, or accept any collective 
bargaining agreement which provides for re-
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duced contribution rates, during the 30-year pe-
riod described in paragraphs (1) and (2); 
(B) 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, or under section 418E of such Code, 
before the loan, the plan will reinstate the sus-
pended benefits (or will not carry out any sus-
pension which has been approved but not yet 
implemented); 
(C) the plan sponsor will comply with the 
requirements of section 6059A of the Internal 
Revenue Code of 1986; and 
(D) the plan and plan administrator will 
meet such other requirements as the Director of 
the Pension Rehabilitation Administration pro-
vides in the loan terms. 
(c) LOAN APPLICATION.— 
(1) IN GENERAL.—In applying for a loan under 
subsection (a), the plan sponsor shall— 
(A) demonstrate that, except as provided 
in subparagraph (C)— 
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(i) the loan will enable the plan to 
avoid insolvency for at least the 30-year 
period described in paragraphs (1) and (2) 
of subsection (b) or, in the case of a plan 
which is already insolvent, to emerge from 
insolvency within and avoid insolvency for 
the remainder of such period; and 
(ii) the plan is reasonably expected to 
be able to pay benefits and the interest on 
the loan during such period and to accu-
mulate sufficient funds to repay the prin-
cipal when due; 
(B) provide the 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 
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(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 and 
the Secretary of Labor, concludes that the deter-
minations and demonstrations in the application 
were clearly erroneous. 
(3) REQUIRED ACTION; 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 
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notifies the plan sponsor that the determinations or 
demonstrations in the application were deemed clear-
ly erroneous under paragraph (2). Any approval or 
denial of an application by the Director of the Pen-
sion Rehabilitation Administration shall be treated 
as a final agency action for purposes of section 704 
of title 5, United States Code. 
(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). 
(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 
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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 at the time 
the loan is made. 
(B) PLANS
WITH
SUSPENDED
BENE-
FITS.—In the case of a plan which has sus-
pended benefits 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 section 418E of such Code— 
(i) the suspension of benefits shall not 
be taken into account in applying para-
graph (1); and 
(ii) the loan amount shall be the 
amount sufficient to provide benefits of 
participants and beneficiaries of the plan 
in pay status at the time the loan is made, 
determined without regard to the suspen-
sion, including retroactive payment of ben-
efits which would otherwise have been pay-
able during the period of the suspension. 
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(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 
amount under subparagraph (B); and 
(ii) if such financial assistance is 
granted, the amount of the loan under sub-
section (a) shall be the amount described 
in paragraph (1) reduced by 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-
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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.—The loan received 
under subsection (a) shall be used to purchase 
annuity contracts which meet the requirements 
of subparagraph (B) or to implement a port-
folio described in subparagraph (C) (or a com-
bination of the two) to provide the benefits de-
scribed 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.— 
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(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 at the 
time of the loan are satisfied. 
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(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. 
(D) ACCOUNTING.— 
(i) IN GENERAL.—Annuity contracts 
purchased 
and 
portfolios 
implemented 
under this paragraph shall be accounted 
for separately from the other assets of the 
plan, and the proceeds thereof shall be 
used solely to provide the benefits de-
scribed in paragraph (1) until all such ben-
efits have been paid. 
(ii) OVERSIGHT OF NON-ANNUITY IN-
VESTMENTS.— 
(I) IN GENERAL.—Any portfolio 
implemented under this paragraph 
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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 
triennial review under subclause (I) 
determines an inadequacy, the plan 
sponsor shall take remedial action to 
ensure that the inadequacy will be 
cured within 5 years of the review. 
(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. 
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(e) 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 reflecting the 
plan’s ability to make payments, which may include in-
stallment payments over a reasonable period and, if the 
Pension Rehabilitation Administration deems necessary to 
avoid any suspension of the accrued benefits of partici-
pants, forgiveness of a portion of the loan principal. 
(f) AUTHORITY TO ISSUE RULES, ETC.—The Direc-
tor of the Pension Rehabilitation Administration estab-
lished under section 2, in consultation with the Pension 
Benefit Guaranty Corporation and the Department 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 purposes of such 
applications, and assumptions regarding interest rates, 
mortality, and distributions with respect to a portfolio de-
scribed in subsection (d)(3)(C). 
(g) 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); 
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(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.’’. 
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 withdraws from 
the plan before the end of the 30-year period 
beginning on the date of the loan, the with-
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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 so taken into account. 
‘‘(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— 
‘‘(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 
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‘‘(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 withdraws from 
the plan before the end of the 30-year period 
beginning on the date of the loan, the with-
drawal liability of such employer shall be deter-
mined— 
‘‘(i) by applying section 4219(c)(1)(D) 
as if the plan were terminating by the 
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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 shall not be taken into account in deter-
mining the withdrawal liability 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 so taken into account. 
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‘‘(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— 
‘‘(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.’’. 
SEC. 6. ISSUANCE OF TREASURY BONDS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall issue bonds as authorized by section 3102 of title 
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31, United States Code, in an amount necessary to fund 
the loan program under section 4 of this Act, as deter-
mined in consultation with the Director of the Pension Re-
habilitation Administration established under section 2. 
(b) TRANSFERS
TO
PENSION
REHABILITATION 
TRUST FUND.—The Secretary of the Treasury shall from 
time to time transfer an amount equal to the proceeds of 
the issue under subsection (a), from the general fund of 
the Treasury to the Pension Rehabilitation Trust Fund 
established under section 9512 of the Internal Revenue 
Code of 1986. 
SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHA-
BILITATION LOANS. 
(a) IN GENERAL.—Subpart E of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION RE-
HABILITATION LOANS. 
‘‘(a) IN GENERAL.—In the case of a plan receiving 
a loan under section 4(a) of the Rehabilitation for Multi-
employer Pensions Act, with respect to the first plan year 
beginning after the date of the loan and each of the 29 
succeeding plan years, not later than the 90th day of each 
such plan year the plan sponsor shall file with the Sec-
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retary a report (including appropriate documentation and 
actuarial certifications from the plan actuary, as required 
by the Secretary) that contains— 
‘‘(1) the funded percentage (as defined in sec-
tion 432(i)(2)) as of the first day of such plan year, 
and the underlying actuarial value of assets (deter-
mined with regard, and without regard, to annuity 
contracts purchased and portfolios implemented with 
proceeds of such loan) and liabilities (including any 
amounts due with respect to such loan) taken into 
account in determining such percentage, 
‘‘(2) the market value of the assets of the plan 
(determined as provided in paragraph (1)) as of the 
last day of the plan year preceding such plan year, 
‘‘(3) the total value of all contributions made by 
employers and employees during the plan year pre-
ceding such plan year, 
‘‘(4) the total value of all benefits paid during 
the plan year preceding such plan year, 
‘‘(5) cash flow projections for such plan year 
and the 9 succeeding plan years, and the assump-
tions used in making such projections, 
‘‘(6) funding standard account projections for 
such plan year and the 9 succeeding plan years, and 
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the assumptions relied upon in making such projec-
tions, 
‘‘(7) the total value of all investment gains or 
losses during the plan year preceding such plan year, 
‘‘(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, 
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‘‘(13) the number of participants and bene-
ficiaries during the plan year preceding such plan 
year who are active participants, the number of par-
ticipants and beneficiaries in pay status, and the 
number of terminated vested participants and bene-
ficiaries, 
‘‘(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-
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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— 
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(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)), or 
‘‘(B) which is insolvent but has not been termi-
nated and is receiving assistance from the corpora-
tion (other than assistance under this subsection), 
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and which is applying for a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pensions Act may also 
apply to the corporation for financial assistance under this 
subsection, by jointly submitting such applications in ac-
cordance with section 4(d)(2) of such Act. The application 
for financial assistance under this subsection shall dem-
onstrate, based on projections by the plan actuary, that 
after the receipt of the anticipated loan amount under sec-
tion 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 the case of a plan described in paragraph 
(1)(A), the financial assistance provided pursuant to such 
application under this subsection shall be the amount (de-
termined by the plan actuary and submitted on the appli-
cation) equal to the sum of— 
‘‘(A) the percentage of benefits of participants 
and beneficiaries of the plan in pay status at the 
time of the application, and 
‘‘(B) the percentage of future benefits to which 
participants who have separated from service but are 
not yet in pay status are entitled, 
which, if such percentage were paid by the corporation in 
combination with the loan, would allow the plan to avoid 
the projected insolvency and be projected to have increas-
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ing assets over any 5-year period following the repayment 
of the loan. Such amount shall not exceed the maximum 
guaranteed benefit with respect to all participants and 
beneficiaries of the plan under sections 4022A and 4022B. 
For this purpose, the maximum guaranteed benefit 
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. Further, the present value of 
the maximum guaranteed benefit amount with respect to 
such participants and beneficiaries may be calculated in 
the aggregate, rather than by reference to the benefit of 
each such participant or beneficiary. 
‘‘(3) In the case of a plan described in paragraph 
(1)(B), the financial assistance provided pursuant to such 
application under this subsection shall be the amount (de-
termined by the plan actuary and submitted on the appli-
cation) which, if such amount were paid by the corporation 
in combination with the loan and any other assistance 
being provided to the plan by the corporation at the time 
of the application, would enable the plan to emerge from 
insolvency. 
‘‘(4) 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 
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