Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021
Bill: S.589 | Sponsor: Sen. Grassley, Chuck (R-IA)
Policy area: Labor and Employment

Summary:
Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021
This bill makes various changes with respect to the administration of multiemployer pension plans.
Among other provisions, the bill allows qualified multiemployer plans to apply for special partition assistance from the Pension Benefit Guaranty Corporation (PBGC). Partition assistance generally authorizes the PBGC to take financial responsibility for a portion of the liabilities of a plan at risk of insolvency. Subject to certain exceptions and conditions, special partition assistance expands eligibility for partition assistance and does not require plans to repay the amount of assistance received.
The bill also revises the PBGC rules for determining whether a plan is insolvent and the procedures for terminating a plan that fails to meet certain standards.
Additionally, the bill sets forth the discount rates used to estimate a plan's future benefit payment obligations, which affect an employer's minimum contribution to the plan. It also establishes a stable funding status and an unrestricted funding status and revises the criteria for plans that are in endangered, critical, and critical and declining statuses.
Finally, the bill establishes rules for new composite plans. Composite plans provide annuity benefits to plan participants, establish fixed contributions from employers, and require realignment measures if the plan's projected funded ratio falls below 120%. A composite plan's projected funded ratio is the actuarial projection of the plan's assets compared to liabilities as of the first plan day of the 15th plan year following a given plan year.

To amend the Internal Revenue Code of 1986 and the Employee Retirement 
 Income Security Act of 1974 to reform the treatment of multiemployer 
     plans, to ensure the ability of the Pension Benefit Guaranty 
 Corporation to provide guaranteed benefits of retirees, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Chris Allen 
Multiemployer Pension Recapitalization and Reform Act of 2021''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--RESTRUCTURING PENSION INSURANCE FOR MULTIEMPLOYER DEFINED 
                         BENEFIT PENSION PLANS

     Subtitle A--Special Partitions of Eligible Multiemployer Plans

Sec. 101. Special partitions of eligible multiemployer plans.
                        Subtitle B--PBGC Reforms

Sec. 111. Guarantee rate increase for plans receiving financial 
                            assistance.
Sec. 112. Amendment to definition of insolvency.
Sec. 113. Termination of multiemployer plans.
Sec. 114. Benefits under certain terminated plans.
                 Subtitle C--Pension Insurance Modeling

Sec. 121. Pension insurance modeling.
    TITLE II--FUNDING RULES, WITHDRAWAL LIABILITY, AND OTHER REFORMS

      Subtitle A--Minimum Funding Standard for Multiemployer Plans

Sec. 201. Valuation of plan liabilities.
      Subtitle B--Additional Funding Rules for Multiemployer Plans

                     Part I--Plan Status Amendments

Sec. 211. Amendments to Internal Revenue Code of 1986.
Sec. 212. Amendments to Employee Retirement Income Security Act of 
                            1974.
Sec. 213. Transition rules.
              Part II--Provisions Relating to Plan Mergers

Sec. 221. Provisions relating to plan mergers and consolidations.
Sec. 222. Clarification of PBGC financial assistance for plan mergers 
                            and partitions.
Sec. 223. Restoration not required for certain mergers.
                 Part III--Withdrawal Liability Reform

Sec. 231. Withdrawal liability reform.
     TITLE III--PLAN GOVERNANCE, DISCLOSURE, AND OTHER REFORMS FOR 
              MULTIEMPLOYER DEFINED BENEFIT PENSION PLANS

   Subtitle A--Plan Governance and Operations for Multiemployer Plans

Sec. 301. Independent trustees.
Sec. 302. Investigatory authority.
Sec. 303. Conditions on financial assistance.
Sec. 304. Excise tax on excess compensation of covered employees of 
                            partitioned multiemployer plans.
         Subtitle B--Reportable Events for Multiemployer Plans

Sec. 311. Reportable events.
   Subtitle C--Funding Notices to Participants in Multiemployer Plans

Sec. 321. Improved multiemployer plan disclosure.
Sec. 322. Penalties for failure to provide notices.
             Subtitle D--Consistency of Criminal Penalties

Sec. 331. Consistency of criminal penalties.
               TITLE IV--OTHER MULTIEMPLOYER PLAN REFORMS

Sec. 401. Clarification of fiduciary duty of retiree representative who 
                            is a trustee.
Sec. 402. Safe harbors.
Sec. 403. Clarification of notice and comment process.
Sec. 404. Protection of participants receiving disability benefits.
Sec. 405. Model notice.
                  TITLE V--ALTERNATIVE PLAN STRUCTURES

Sec. 501. Composite plans.
Sec. 502. Application of certain requirements to composite plans.
Sec. 503. Treatment of composite plans under title IV.
Sec. 504. Conforming changes.
Sec. 505. Effective date.
                     TITLE VI--FINANCIAL PROVISIONS

Sec. 601. Additional premiums.
Sec. 602. Funding.
Sec. 603. Composite plan transition fee.

  TITLE I--RESTRUCTURING PENSION INSURANCE FOR MULTIEMPLOYER DEFINED 
                         BENEFIT PENSION PLANS

     Subtitle A--Special Partitions of Eligible Multiemployer Plans

SEC. 101. SPECIAL PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS.

    (a) In General.--Title IV of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1301 et seq.) is amended by inserting 
after section 4233 the following:

``SEC. 4233A. SPECIAL PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS.

    ``(a) In General.--
            ``(1) Requirement to order partition.--Upon the application 
        by the plan sponsor of an eligible multiemployer plan described 
        in subsection (b) for a partition of the plan, the corporation 
        shall order a partition of the plan in accordance with this 
        section, provided the other requirements in this section are 
        met. The corporation shall make a determination regarding the 
        application not later than 150 days after the date such 
        application was filed (or, if later, the date such application 
        was completed) in accordance with regulations that shall be 
        issued by the corporation under subsection (h).
            ``(2) Notification of participants.--Not later than 30 days 
        after submitting an application for partition of a plan under 
        paragraph (1), the plan sponsor of the plan shall notify the 
        participants and beneficiaries of such application, in the form 
        and manner prescribed by the corporation.
            ``(3) Implementation of transfer.--The corporation shall 
        implement the partition order issued under this section not 
        later than 60 days after the completion of the corporation's 
        determination under paragraph (1).
            ``(4) Filing date of application.--Partitions under this 
        section shall apply only with respect to any eligible 
        multiemployer plan whose plan sponsor files an application that 
        is determined by the corporation to be complete pursuant to 
        regulations issued by the corporation under subsection (h)(1) 
        and that is filed by the later of the time specified in such 
        regulations or 1 year after the corporation issues such 
        regulations.
    ``(b) Eligible Multiemployer Plan.--For purposes of this section--
            ``(1) In general.--The term `eligible multiemployer plan' 
        means a multiemployer plan that meets any of the following 
        conditions:
                    ``(A) The plan became insolvent (as described in 
                section 4245(b), as in effect the day before the date 
                of enactment of this section) on or after December 16, 
                2014, and prior to the date of enactment of this 
                section and has not terminated.
                    ``(B) The plan--
                            ``(i)(I) was certified, in the most recent 
                        annual certification filed pursuant to section 
                        305(b)(3) (as in effect on the day before the 
                        date of enactment of this section) before the 
                        date of enactment of this section, to be in 
                        critical and declining status (as defined in 
                        section 305(b)(6), as so in effect), and has 
                        not terminated as of such date;
                            ``(II) implemented a suspension of benefits 
                        under section 305(e)(9) (as in effect on the 
                        day before the date of enactment of this 
                        section) prior to the date of enactment of this 
                        section;
                            ``(III)(aa) was certified, in the most 
                        recent annual certification filed pursuant to 
                        section 305(b)(3) (as so in effect) before the 
                        date of enactment of this section, to be in 
                        critical status (as defined in section 
                        305(b)(2), as so in effect), and has not 
                        terminated as of such date;
                            ``(bb) has a funded percentage that is less 
                        than 40 percent on a current liability basis, 
                        based on the most recent Form 5500, Schedule 
                        MB, line 1b(1) for current value of assets and 
                        line 1d(2)(a) for current liability, filed 
                        before the date of enactment of this section; 
                        and
                            ``(cc) has an active to inactive 
                        participant ratio that is below 40 percent as 
                        of the most recent Form 5500 filed before the 
                        date of enactment of this section; or
                            ``(IV)(aa) was certified, in the most 
                        recent annual certification filed pursuant to 
                        section 305(b)(3) (as so in effect) before the 
                        date of enactment of this section, to be in 
                        critical status (as defined in section 
                        305(b)(2), as so in effect) and has not 
                        terminated before such date;
                            ``(bb) has an active to total participant 
                        ratio that is below 20 percent as of the most 
                        recent Form 5500 filed before the date of 
                        enactment of the section; and
                            ``(cc) has more than 100,000 participants 
                        as of the most recent Form 5500 filed before 
                        the date of enactment of the section; and
                            ``(ii) is not the plan described in section 
                        9701(a)(3) of the Internal Revenue Code of 
                        1986, determined without regard to the 
                        limitation on participation to individuals who 
                        retired in 1976 and thereafter.
            ``(2) Eligible plans required to file for partition.--
                    ``(A) In general.--An eligible multiemployer plan 
                (other than a plan eligible under paragraph 
                (1)(B)(i)(II)) shall file with the corporation for 
                partition under this section. If an eligible plan 
                required under the preceding sentence to file for 
                partition does not so file in a timely manner, the plan 
                is subject to termination under section 4042.
                    ``(B) Exception.--If a plan is reasonably 
                determined to be ineligible for future adjustments 
                under subsection (j)(3)(C)(iii)--
                            ``(i) subparagraph (A) shall not apply to 
                        such plan; and
                            ``(ii) such plan may withdraw the partition 
                        application (or, as provided by the corporation 
                        in regulations, not submit such application at 
                        all).
    ``(c) Conditions for Partition.--
            ``(1) Rate of accruals.--
                    ``(A) In general.--As a condition of any partition 
                under this section, the rate of future accruals, during 
                the period beginning on the date of the partition order 
                and ending 15 years after the effective date of the 
                partition, shall not exceed the lesser of--
                            ``(i) a monthly benefit (payable as a 
                        single life annuity commencing at the 
                        participant's normal retirement age) equal or 
                        equivalent to 1 percent of the annual 
                        contributions required to be made with respect 
                        to a participant as of the first day of the 
                        first plan year that begins after the date of 
                        enactment of this section; or
                            ``(ii) the accrual rate under the plan on 
                        such first day.
                    ``(B) Determination of equivalent rate.--The plan 
                sponsor may determine the equivalent rate of future 
                accruals based on the standard or average contribution 
                base units which the plan sponsor determines to be 
                representative for active participants and such other 
                factors as the plan sponsor determines to be relevant. 
                Such determinations by the plan sponsor may be made on 
                the basis of individual active participants, groups of 
                active participants, or all active participants in 
                total.
                    ``(C) Special rule for future accruals.--To the 
                extent that the rate of future accruals exceeds the 
                limitation determined under this paragraph, the plan 
                sponsor shall adjust the rate of future accruals in 
                accordance with this paragraph effective as of the date 
                of the partition order.
            ``(2) Elimination of adjustable benefits.--As a condition 
        of any partition under this section, the plan sponsor of an 
        eligible multiemployer plan shall eliminate all adjustable 
        benefits in the nature of an early retirement subsidy 
        (including a subsidized early retirement actuarial reduction 
        factor) for all participants not in pay status as of the date 
        of the partition application. Nothing in this paragraph shall 
        affect the right of a participant to receive an unsubsidized 
        early retirement benefit.
    ``(d) Successor Plans and Original Plans.--
            ``(1) In general.--The plan created by the partition order 
        is a successor plan to which section 4022A applies.
            ``(2) Plan sponsor and plan administrator.--The plan 
        sponsor of an eligible multiemployer plan prior to partition 
        and the administrator of such plan shall be the plan sponsor 
        and the administrator, respectively, of the original plan and 
        the successor plan created by the partition order.
            ``(3) Original plan.--The remaining plan after benefits 
        have been transferred to the successor plan pursuant to the 
        partition order is the original plan. Benefit payments made by 
        the successor plan shall not constitute a reduction in benefits 
        with respect to the original plan.
    ``(e) Financial Assistance to Successor Plans From the 
Corporation.--
            ``(1) In general.--Upon approval of an application filed 
        pursuant to subsection (i), the corporation shall provide 
        financial assistance to each successor plan of an eligible 
        multiemployer plan.
            ``(2) Nonapplicability of repayment rule.--Financial 
        assistance provided to a successor plan pursuant to this 
        subsection shall not be subject to the requirements of section 
        4261(b)(2), except that the corporation may condition receipt 
        of financial assistance under this subsection on reasonable 
        terms consistent with regulations prescribed by the corporation 
        to prevent abuse of the multiemployer plan program or prevent 
        unreasonable risk of loss to the corporation.
    ``(f) Payment Requirements of Original Plan.--For each participant 
or beneficiary of the plan whose benefit or portion thereof was 
transferred to the successor plan, the original plan shall pay a 
monthly benefit to such participant or beneficiary for each month in 
which such benefit is in pay status following the effective date of 
such partition in an amount equal to the excess of--
            ``(1) the monthly benefit that would be paid to the 
        participant or beneficiary under the terms of the original plan 
        had the transfer of benefits not occurred (taking into account 
        any applicable benefit reductions or plan amendments following 
        the effective date of the partition); over
            ``(2) the monthly benefit for such participant or 
        beneficiary that is paid by the successor plan.
    ``(g) Transfer of Benefits.--
            ``(1) In general.--A partition order under subsection (a) 
        shall provide for a transfer of benefits from the original plan 
        to the successor plan in the amount necessary for the original 
        plan to be projected to remain solvent indefinitely, as defined 
        in section 1.432(e)(9)-1(d)(5)(ii) of title 26, Code of Federal 
        Regulations (excluding subparagraph (A)(2)), as in effect on 
        the date on which such regulations were issued, using actuarial 
        and other assumptions to be promulgated by the corporation in 
        the regulations described in subsection (h)(4). Such transfer 
        amounts shall be determined without respect to the amount 
        guaranteed under section 4022A.
            ``(2) Considerations.--
                    ``(A) In general.--In determining the transfer 
                amount under paragraph (1), the corporation shall take 
                into account all obligations of the original plan, 
                including the payment of benefits required under 
                subsection (f) in excess of the amount paid by the 
                successor plan and all plan expenses and premium 
                amounts.
                    ``(B) Projection of assets and liabilities.--The 
                amount of the transfer of benefits shall be based on a 
                projection of plan assets and liabilities to the 
                projected partition date, as specified in the partition 
                application, and--
                            ``(i) the projection of plan assets shall 
                        be based on the fair market value of plan 
                        assets as of the end of the last plan year 
                        preceding the date of the application, with 
                        appropriate adjustments for actual or 
                        anticipated plan experience through the 
                        projected partition date; and
                            ``(ii) the projection of plan liabilities 
                        shall be based on the participant data used in 
                        the most recently completed actuarial 
                        valuation.
            ``(3) Special rule for insolvent plans.--With respect to an 
        insolvent plan described in subsection (b)(1)(A), the 
        corporation shall provide financial assistance to the original 
        plan, as needed for the plan to pay to each participant and 
        beneficiary in the successor plan the excess, if any, of--
                    ``(A) the monthly benefit that would be paid to the 
                participant or beneficiary under the terms of the 
                original plan, prior to insolvency, had the transfer of 
                benefits not occurred (taking into account any 
                applicable benefit reductions or plan amendments 
                following the effective date of the partition); over
                    ``(B) the monthly benefit for such participant or 
                beneficiary that is paid by the successor plan.
    ``(h) Regulations.--
            ``(1) In general.--The corporation shall issue regulations 
        on the requirements for partition applications not later than 
        180 days after the date of enactment of this section. By 
        regulation, the corporation may assign eligible multiemployer 
        plans into groups, based on plan size (prioritizing larger 
        plans), projected date of plan insolvency (prioritizing plans 
        expected to become insolvent within 5 years), or such other 
        factors as the corporation deems appropriate, for determining 
        when an application for partition under this section may be 
        filed. Any regulations issued under this section shall be 
        interim final or final regulations.
            ``(2) Effect of no regulation.--If the corporation does not 
        issue regulations within 180 days after the date of enactment 
        of this section, any applications for partition under this 
        section filed after the date that is 180 days after such date 
        of enactment (and prior to the date regulations are issued) 
        shall be deemed to be approved.
            ``(3) Rules for determining participants and 
        beneficiaries.--The regulations under this subsection shall 
        include rules for determining which participants and 
        beneficiaries are included in the transfer of benefits.
            ``(4) Actuarial assumptions.--The regulations under this 
        subsection shall prescribe acceptable actuarial assumptions, 
        for purposes of an application, relating to the following:
                    ``(A) Future investment returns which must be 
                consistent with the applicable discount rate under 
                section 304, except that--
                            ``(i) in no case shall the assumption for 
                        future returns be less than 5.5 percent for 
                        purposes of determining the initial partition 
                        amount; and
                            ``(ii) in no case, while the partition 
                        amount is being determined or while the 
                        partition is in effect, shall the assumption 
                        used for determining adjustments under 
                        subsection (j) be less than the lesser of--
                                    ``(I) the rate equal to the 24-
                                month average of the third segment rate 
                                (as defined in section 
                                303(h)(2)(C)(iii)), as of the date the 
                                determination is made, without regard 
                                to section 303(h)(2)(C)(iv), increased 
                                by 2 percent; or
                                    ``(II) 5.5 percent.
                    ``(B) Future contribution base units.
                    ``(C) Future contribution rate increases, taking 
                into account the adopted rehabilitation plan.
                    ``(D) Future withdrawal liability payments.
                    ``(E) Future administrative expenses.
                    ``(F) Mortality.
                    ``(G) Any other assumptions deemed by the 
                corporation to be material.
            ``(5) Rules relating to assumptions.--
                    ``(A) Information required.--For purposes of 
                paragraph (4), when prescribing acceptable actuarial 
                assumptions, the corporation shall not require a plan 
                sponsor to obtain data or other information that a plan 
                sponsor should not reasonably be expected to have in 
                its possession, unless it can be obtained with 
                reasonable effort and expense.
                    ``(B) Economic activity assumption.--For purposes 
                of paragraph (4)(B), an assumption related to future 
                contribution base units shall be considered reasonable 
                and appropriate for purposes of the application under 
                this section, provided that--
                            ``(i) if the recent experience of the plan 
                        has been declining contribution base units, the 
                        plan actuary may assume future contribution 
                        base units will continue to decline at the same 
                        annualized trend as over the 5 immediately 
                        preceding plan years unless such assumption is 
                        unreasonable based on criteria which may be 
                        prescribed by the corporation by regulation, 
                        and
                            ``(ii) if the recent experience of the plan 
                        has been increasing, or neither increasing nor 
                        decreasing, contribution base units, the plan 
                        actuary may assume future contribution base 
                        units will remain unchanged indefinitely, 
                        unless such assumption is unreasonable based on 
                        criteria the corporation may prescribe.
            ``(6) Determination of benefits guarantees.--The 
        regulations under this subsection shall include rules for 
        determining the amounts of benefits guaranteed under section 
        4022A, including acceptable methods to approximate credited 
        service for participants and beneficiaries in pay status where 
        records cannot reasonably be obtained by the plan 
        administrator.
    ``(i) Partition Applications.--
            ``(1) In general.--An application for partition under this 
        section submitted by a plan sponsor shall be filed 
        electronically and contain the required information set forth 
        in regulations promulgated by the corporation.
            ``(2) Approval standards.--The corporation shall approve a 
        partition application if the applying plan meets the 
        requirements for a partition under this section.
            ``(3) Evaluation of initial transfer.--In reviewing an 
        application under this section, the plan shall propose the 
        initial amount of the transfer of benefits under the partition 
        order that is required under subsection (g)(1) and the 
        corporation shall review and modify the amount, if applicable, 
        pursuant to its regulations.
            ``(4) Determinations by the corporation.--
                    ``(A) Determination of ineligibility.--If the 
                corporation determines the plan to be ineligible under 
                subsection (b) for a partition under this section, the 
                corporation shall notify the plan sponsor in writing of 
                such determination not later than 30 days after the 
                application is filed. Such notice shall specify the 
                reasons the plan is ineligible for a special partition. 
                The applicant plan will have a period of at least 60 
                days, or longer if specified by the Corporation through 
                regulations, to modify its application, which shall be 
                subject to expedited review by the corporation and, for 
                purposes of satisfying the 1-year filing requirement 
                for special partition, will relate back to the date the 
                application was initially filed.
                    ``(B) Incomplete applications.--If the corporation 
                determines the application by the plan sponsor lacks 
                information necessary for the corporation to approve or 
                deny the application, the corporation shall notify the 
                plan sponsor in writing, detailing which components are 
                missing, not later than 30 days after the application 
                is filed. Nothing in the preceding sentence shall 
                prevent the corporation from asking the plan sponsor at 
                a later date for additional information necessary to 
                determine the partition amount.
                    ``(C) Factual submissions by plan sponsor.--The 
                factual submissions made by a plan sponsor in a 
                partition application, including participant data and 
                benefit calculations, shall be presumed to be correct, 
                unless clearly erroneous.
    ``(j) Post-Partition Adjustments.--
            ``(1) Process for adjustments.--
                    ``(A) In general.--After benefits have been 
                transferred under the partition order, the corporation 
                shall, at least every third year thereafter, adjust the 
                transfer of benefits, as necessary to enable the 
                original plan to be projected to remain solvent 
                indefinitely, consistent with limitations on guaranteed 
                benefits (if applicable under paragraph (3)(C)). The 
                adjustments shall be made based on such procedures as 
                the corporation shall prescribe by regulation.
                    ``(B) Plans projected to be insolvent.--If the 
                original plan is not projected to be solvent 30 years 
                after any adjustment review date (without regard to 
                whether or not an adjustment takes place in connection 
                with such date), taking into account the adjustments 
                permitted by this paragraph, such plan shall 
                electronically file a report with the corporation, as 
                the corporation shall require by regulation. If the 
                plan subsequently reports for 3 consecutive years for 
                which an adjustment review is conducted that the plan 
                is not projected to be solvent 30 years after the date 
                of each such adjustment review, the plan shall be 
                terminated.
            ``(2) Basis for adjustment.--The adjustment shall be based 
        solely on, as applicable, updated participant data, 
        calculations of guaranteed benefits for participants and 
        beneficiaries covered under the successor plan, contribution 
        experience, current actuarial assumptions (if changed since the 
        initial transfer of benefits), and changes in the market value 
        of the original plan's assets.
            ``(3) Limitations on adjustment.--
                    ``(A) In general.--The corporation shall not adjust 
                under paragraph (1) the transfer of benefits to provide 
                additional financial assistance if the corporation 
                determines that the original plan or the bargaining 
                parties committed an abuse of the multiemployer program 
                with respect to the original plan or otherwise 
                unreasonably took actions (or avoided taking actions) 
                with the result that there is an increased risk of loss 
                to the corporation with respect to the successor plan 
                or the original plan.
                    ``(B) End of adjustment authority.-- No adjustments 
                under paragraph (1) to the transfer of benefits shall 
                be allowed with respect to any plan year beginning 30 
                or more years after the date of the partition.
                    ``(C) Aggregate limits.--If the initial transfer of 
                benefits from the plan under subsection (g)--
                            ``(i) was less than 100 percent of the 
                        amount of benefits under the plan guaranteed 
                        under section 4022A for each participant, any 
                        adjustment under paragraph (1) shall not result 
                        in a benefit for any participant in the 
                        successor plan in excess of 100 percent of the 
                        participant's guaranteed benefit, determined as 
                        of the date of the initial transfer;
                            ``(ii) was equal to or greater than 100 
                        percent of the amount of benefits so 
                        guaranteed, any adjustment under paragraph (1) 
                        shall not result in a benefit for any 
                        participant in the successor plan in excess of 
                        the amount of the participant's benefit subject 
                        to the initial transfer; and
                            ``(iii) was less than 5 percent of the 
                        amount of benefits so guaranteed, there shall 
                        be no adjustment under paragraph (1).
            ``(4) Terminated and insolvent plans.--With respect to an 
        original plan partitioned under this section that subsequently 
        is terminated or becomes insolvent, the benefits transferred 
        under the partition order shall revert to the original plan, 
        the partition shall be reversed, and financial assistance 
        provided pursuant to the partition order shall cease.
            ``(5) Regulations.--The corporation shall promulgate 
        regulations describing the process and requirements for 
        reporting and the circumstances under which plans will be 
        terminated in accordance with the provisions of section 4041A 
        pursuant to this subsection.
    ``(k) Plans That Implemented Suspension of Benefits.--
            ``(1) In general.--An eligible multiemployer plan described 
        in subsection (b)(1)(B)(i)(II) may be approved for a partition 
        under this section only if it unwinds the suspension, and, if 
        applicable, the previous partition described in such subsection 
        in accordance with regulations to be issued by the corporation, 
        in consultation with the Secretary of the Treasury. The 
        unwinding of a suspension or partition described in such 
        subsection must be contingent upon the corporation's approval 
        of the application for partition under this section.
            ``(2) Timing of unwinding of suspension of benefits.--In 
        the case of a partition described in paragraph (1), the 
        suspension of benefits shall be unwound retroactively. Benefits 
        shall be restored to pre-suspension levels as of the effective 
        date of the partition under this section and participants who 
        are receiving benefits on the date of enactment of this section 
        shall, beginning not later than 180 days after the approval of 
        a partition order under this section, receive a special 
        payment, payable over a period not to exceed 2 years, equal to 
        the amount of benefits previously suspended as prescribed in 
        regulations. Such plans are subject to the requirements of 
        subsection (c).
    ``(l) Fiduciary Protection.--Plan participants and beneficiaries 
shall not have a claim under section 409 or section 502 of this Act 
against plan fiduciaries with respect to an application for partition 
assistance made in good faith or the allocation of benefit liabilities 
between the successor plan and the original plan.
    ``(m) Effect of Partition on Withdrawal Liability.--
            ``(1) In general.--A partition order under this section is 
        taken into account in determining withdrawal liability under 
        section 4201 of an employer that contributes to the original 
        plan, provided that the employer remains a contributing 
        employer to the original plan (and in compliance with any 
        applicable funding improvement or rehabilitation plan) for a 
        period of 15 years following the effective date of the 
        liability transfer.
            ``(2) Withdrawals after less than 15 years.--
                    ``(A) In general.--If an employer completely 
                withdraws or partially withdraws from a plan that was 
                partitioned under this section at any time within the 
                15-year period described in paragraph (1), the transfer 
                of benefits under subsection (g) shall not be taken 
                into account in computing the employer's complete or 
                partial withdrawal liability, and the amount of the 
                annual withdrawal liability payment amount otherwise 
                determined shall be increased by 10 percent.
                    ``(B) Exception.--Subparagraph (A) shall not 
                apply--
                            ``(i) if the complete or partial withdrawal 
                        is due to a decertification, a change in 
                        bargaining representatives, disclaimer of 
                        interest, or because of an event described in 
                        section 4218; or
                            ``(ii) in the case of a partial withdrawal 
                        due to a bargaining unit or facility take-out 
                        if the contribution base units for the plan 
                        year immediately following the year of the 
                        partial withdrawal are at least 97 percent of 
                        the contribution base units for the plan year 
                        immediately preceding the year of the partial 
                        withdrawal.
            ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        an employer that first had an obligation to contribute to the 
        plan partitioned under this section after the date of enactment 
        of this section.
    ``(n) Restrictions on Benefit Improvements.--
            ``(1) Increase in plan liabilities.--
                    ``(A) In general.--If the plan sponsor adopts a 
                plan amendment that increases plan liabilities (due to 
                any increase in benefits, any change in the accrual of 
                benefits, or any change in the rate at which benefits 
                become nonforfeitable) that takes effect after the 
                effective date of the partition, the original plan 
                shall make payments to the corporation for each year 
                during the 20-year period following the effective date 
                of the benefit increase. For purposes of this 
                paragraph, an increase in benefits due to an increase 
                in the contribution rate or compensation shall be 
                considered a prohibited increase in benefits.
                    ``(B) Exception for certain accruals.--Subparagraph 
                (A) shall not apply to any change in future accruals 
                after the end of the 15-year period during which such 
                accruals are limited under subsection (c).
            ``(2) Amount payable to corporation.--The amount paid by 
        the original plan to the corporation under paragraph (1) each 
        year shall be equal to the lesser of--
                    ``(A) the total value of the increase in benefit 
                payments for the year that is attributable to the 
                benefit improvement; or
                    ``(B) the total benefit payments from the successor 
                plan for such year.
            ``(3) Timing of payment.--Payments under paragraph (2) 
        shall be made by the original plan at the time of, and in 
        addition to, any premium imposed by the corporation on the 
        plan.
            ``(4) PBGC authority.--The corporation is authorized to 
        bring an action against the original plan to prevent or correct 
        any and all actions by plan sponsors, a principal purpose of 
        which is to evade or avoid payments due to the corporation 
        under paragraph (2), or that may have the effect of evading or 
        avoiding such payments. Payments under paragraph (2) shall be 
        determined without regard to such actions by plan sponsors.
            ``(5) Exception for certain changes.--The requirements of 
        this subsection do not apply to an increase or change in 
        benefits that is required by law or that is a de minimis 
        change, as determined by the corporation.
    ``(o) Post-Partition Disclosures.--Not later than 90 days after the 
first day of each plan year beginning after the effective date of a 
partition under this section, the plan sponsor of the original plan 
shall electronically file with the corporation a report including the 
following information:
            ``(1) The estimated funded percentage (as defined in 
        section 305(k)(2)) as of the first day of such plan year, and 
        the underlying actuarial value of assets and liabilities taken 
        into account in determining such percentage.
            ``(2) The estimated amount of all investment returns for 
        the original plan during the preceding plan year.
            ``(3) 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.
            ``(4) The total value of all contributions made by 
        employers and employees during the plan year preceding such 
        plan year.
            ``(5) The total value of all benefits paid during the plan 
        year preceding such plan year.
            ``(6) Cash flow projections for such plan year and the 29 
        succeeding plan years, and the assumptions used in making such 
        projections.
            ``(7) Funding standard account projections for such plan 
        year and the 9 succeeding plan years, and the assumptions used 
        in making such projections.
            ``(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 assessment of the withdrawal 
        liability paid, the annual payment amount, and the number of 
        years remaining 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 preceding such plan 
        year, and whether such changes relate to the conditions of the 
        partition assistance.
            ``(12) Details regarding any funding improvement plan or 
        rehabilitation plan and updates to such plan.
            ``(13) The number of participants and beneficiaries during 
        the plan year preceding such plan year who are active 
        participants, the number of participants and beneficiaries in 
        pay status, and the number of terminated vested participants 
        and beneficiaries.
            ``(14) For--
                    ``(A) the first plan year after the effective date 
                of the partition, a list of all employers that 
                contributed to the plan during the plan year; and
                    ``(B) subsequent plan years, changes to the list of 
                contributing employers.
            ``(15) The information contained on the most recent annual 
        return under section 6058 of the Internal Revenue Code of 1986 
        and actuarial report under section 6059 of such Code of the 
        plan.
            ``(16) Copies of the plan document and amendments, other 
        retirement benefit or ancillary benefit plans relating to the 
        plan and contribution obligations under such plans, a breakdown 
        of administrative expenses of the plan, participant census data 
        and distribution of benefits, the most recent actuarial 
        valuation report as of the plan year, financial reports, and 
        copies of the portions of collective bargaining agreements 
        relating to plan contributions, funding coverage, or benefits, 
        and such other information as the corporation may reasonably 
        require.
            ``(17) A list of the employers that contributed more than 5 
        percent of total contributions to the plan during the preceding 
        plan year, and the amount contributed by each such employer.
Any information or documentary material submitted to the corporation 
pursuant to this subsection that could identify individual employers, 
if clearly designated by the person making the submission as 
confidential (on each page in the case of a document, and in the file 
name in the case of a digital file), shall be exempt from disclosure 
under section 552 of title 5, United States Code, and no such 
information or documentary material may be made public except as may be 
relevant to any administrative or judicial action or proceeding, 
including an informal rulemaking.
    ``(p) Restrictions on Contribution Decreases.--
            ``(1) In general.--Subject to paragraph (2), except in any 
        plan year in which the plan is certified by the plan actuary as 
        in unrestricted status pursuant to section 305(b)(1)(B), the 
        plan sponsor of an original plan may not accept a collective 
        bargaining agreement with respect to such original plan that 
        includes a reduction in employer contribution rates.
            ``(2) Exception.--Under a process to be promulgated by 
        regulation by the corporation, a plan sponsor of an original 
        plan may petition the corporation for the authority to approve 
        a collective bargaining agreement that contemplates a reduction 
        in employer contribution rates. Such regulation shall include a 
        requirement that a plan petitioning for such authority 
        demonstrate that its existing contribution rates are higher 
        than contribution rates paid on behalf of other workers covered 
        by collective bargaining agreements in the same industry in 
        nearby localities. The corporation shall approve the petition 
        if the plan sponsor demonstrates that the reduction in 
        contribution rates improves the long-term funding or solvency 
        of the plan, and does not increase the corporation's expected 
        loss with respect to the plan.
    ``(q) Effect on Accumulated Funding Deficiency.--Any accumulated 
funding deficiency (as defined in section 304(a)) of a plan shall be 
reduced to zero as of the first day of the plan year during which the 
partition under this section is effective.
    ``(r) Coordination of Reporting and Disclosure Requirements.--The 
corporation, the Secretary, and the Secretary of the Treasury may, 
individually or collectively, promulgate regulations to reduce 
reporting and disclosure obligations for successor plans, including 
coordinating with reporting and disclosure by original plans.''.
    (b) Conforming Amendment.--Section 4233 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1413) is amended by adding at 
the end the following:
    ``(g) This section shall not apply to an eligible multiemployer 
plan described in section 4233A(b) that receives a special partition 
under that section.''.
    (c) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
seq.) is amended by inserting after the item relating to section 4233 
the following:

``4233A. Special partitions of eligible multiemployer plans.''.

                        Subtitle B--PBGC Reforms

SEC. 111. GUARANTEE RATE INCREASE FOR PLANS RECEIVING FINANCIAL 
              ASSISTANCE.

    (a) In General.--Section 4022A(c)(1) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(c)(1)) is amended by 
striking subparagraph (A) and inserting the following:
            ``(A) 100 percent of the accrual rate up to $15, plus 75 
        percent of the lesser of--
                    ``(i) $54.67, or
                    ``(ii) the accrual rate, if any, in excess of $15, 
                and''.
    (b) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to financial assistance provided by the Pension Benefit 
        Guaranty Corporation--
                    (A) to plans that become insolvent after the date 
                of the enactment of this Act; or
                    (B) pursuant to a special partition under section 
                4233A of the Employee Retirement Income Security Act of 
                1974, as added by this Act.
            (2) Exception for partitions on or before date of 
        enactment.--The amendments made by this section shall not apply 
        to financial assistance provided by the Pension Benefit 
        Guaranty Corporation pursuant to a partition of a multiemployer 
        plan occurring on or before the date of the enactment of this 
        Act.

SEC. 112. AMENDMENT TO DEFINITION OF INSOLVENCY.

    (a) Amendments to Employee Retirement Income Security Act of 
1974.--Section 4245 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1426) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Notwithstanding sections 203 and 204, an insolvent 
multiemployer plan shall suspend the payments of benefits which are not 
basic benefits, in accordance with this section, and terminate the plan 
under section 4041A(a)(4).'';
            (2) in subsection (b)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) a multiemployer plan is insolvent if the plan's 
        available resources in any of the next 5 plan years are 
        projected not to be sufficient to pay benefits under the plan 
        when due for the plan year;'';
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (2), as so redesignated, by 
                inserting ``expected'' before ``contributions'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d) through (g) as 
        subsections (c) through (f), respectively;
            (5) in subsection (c), as so redesignated--
                    (A) in paragraph (1)--
                            (i) by striking ``critical status, as 
                        described in subsection 305(b)(2),)'' and 
                        inserting ``such critical status)'';
                            (ii) by striking ``3 times'' and inserting 
                        ``10 times''; and
                            (iii) by striking ``5 plan years'' each 
                        place such term appears and inserting ``8 plan 
                        years'';
                    (B) in paragraph (2)--
                            (i) by striking ``plan's available 
                        resources are not sufficient to pay benefits 
                        under the plan when due for the next plan 
                        year'' and inserting ``plan will be insolvent 
                        in any of the next 10 plan years''; and
                            (ii) by inserting ``and the corporation'' 
                        before the period at the end;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraph (4) as paragraph 
                (3);
            (6) in subsection (d), as so redesignated--
                    (A) in paragraph (1)--
                            (i) by striking ``subsection (d)(1) or 
                        (2)'' and inserting ``subsection (c)(1) or 
                        (2)''; and
                            (ii) by striking ``Treasury,'' in 
                        subparagraph (A) and inserting ``Treasury 
                        and'';
                    (B) in paragraph (2)--
                            (i) by striking ``resource benefit level 
                        determined in writing for that insolvency 
                        year'' and inserting ``reduction of benefit 
                        payments to the level of basic benefits and the 
                        termination of the plan under section 
                        4041A(a)(4) as of the first day of the seventh 
                        full plan month of the plan's first insolvency 
                        year under subsection (b)(3)''; and
                            (ii) by striking ``each insolvency year'' 
                        and inserting ``the first insolvency year'';
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively;
            (7) in subsection (e), as so redesignated--
                    (A) in paragraph (1) by striking ``, for which the 
                resource benefit level is above the level of basic 
                benefits,''; and
                    (B) by striking paragraph (2) and inserting after 
                paragraph (1) the following new paragraph:
            ``(2) A plan sponsor who has determined that the plan's 
        available resources for an insolvency year are below the level 
        of basic benefits shall apply for financial assistance from the 
        corporation under section 4261.''; and
            (8) in subsection (f), as so redesignated, by striking 
        ``Subsections (a) and (c)'' and inserting ``Subsection (a)''.
    (b) Amendments to Internal Revenue Code of 1986.--Section 418E of 
the Internal Revenue Code of 1986 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Suspension of Certain Benefit Payments; Termination.--
Notwithstanding section 411, an insolvent multiemployer plan shall 
suspend the payments of benefits which are not basic benefits, in 
accordance with this section, and terminate the plan under section 
4041A(a)(4) of the Employee Retirement Income Security Act of 1974.'';
            (2) in subsection (b)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Insolvent multiemployer plan.--A multiemployer plan 
        is insolvent if the plan's available resources in any of the 
        next 5 plan years are projected not to be sufficient to pay 
        benefits under the plan when due for the plan year.'';
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (2), as so redesignated, by 
                inserting ``expected'' before ``contributions'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d) through (h) as 
        subsections (c) through (g), respectively;
            (5) in subsection (c), as so redesignated--
                    (A) in paragraph (1)--
                            (i) by striking ``critical status, as 
                        described in subsection 432(b)(2))'' and 
                        inserting ``such critical status)'';
                            (ii) by striking ``3 times'' and inserting 
                        ``10 times''; and
                            (iii) by striking ``5 plan years'' each 
                        place such term appears and inserting ``8 plan 
                        years'';
                    (B) in paragraph (2)--
                            (i) by striking ``plan's available 
                        resources are not sufficient to pay benefits 
                        under the plan when due for the next plan 
                        year'' and inserting ``plan will be insolvent 
                        in any of the next 10 plan years''; and
                            (ii) by inserting ``and the corporation'' 
                        before the period at the end;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraph (4) as paragraph 
                (3);
            (6) in subsection (d), as so redesignated--
                    (A) in paragraph (1), by striking ``subsection 
                (d)(1) or (2)'' and inserting ``subsection (c)(1) or 
                (2)'';
                    (B) in paragraph (2)--
                            (i) by striking ``resource benefit level 
                        determined in writing for that insolvency 
                        year'' and inserting ``reduction of benefit 
                        payments to the level of basic benefits and the 
                        termination of the plan under section 
                        4041A(a)(4) of the Employee Retirement Income 
                        Security Act of 1974 as of the first day of the 
                        seventh full plan month of the plan's first 
                        insolvency year under subsection (b)(3)'';
                            (ii) by striking ``each insolvency year'' 
                        and inserting ``the first insolvency year''; 
                        and
                            (iii) by striking ``Resource benefit 
                        level'' in the heading and inserting ``Notice 
                        of insolvency'';
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively;
            (7) in subsection (e), as so redesignated--
                    (A) in paragraph (1) by striking ``, for which the 
                resource benefit level is above the level of basic 
                benefits,''; and
                    (B) by striking paragraph (2) and inserting after 
                paragraph (1) the following new paragraph:
            ``(2) Plans without available resources.--A plan sponsor 
        who has determined that the plan's available resources for an 
        insolvency year are below the level of basic benefits shall 
        apply for financial assistance from the Pension Benefit 
        Guaranty Corporation under section 4261 of the Employee 
        Retirement Income Security Act of 1974.''; and
            (8) in subsection (g), as so redesignated, by striking 
        ``Subsections (a) and (c)'' and inserting ``Subsection (a)''.
    (c) Regulations.--The Pension Benefit Guaranty Corporation shall 
issue regulations implementing the amendments made by this section. 
Such regulations shall address the assumptions a plan may use in 
projecting whether a plan's available resources in any of the next 5 
plan years are projected not to be sufficient to pay benefits under the 
plan when due.

SEC. 113. TERMINATION OF MULTIEMPLOYER PLANS.

    (a) Termination by Court Order.--Section 4041A of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1341a) is amended by 
adding at the end the following:
    ``(g) Effect of Termination Order.--If a court orders the 
termination of a multiemployer plan under section 4042--
            ``(1) the corporation shall determine whether the 
        termination of such plan shall be carried out in accordance 
        with paragraph (1) or (2) of subsection (a) (and such 
        termination shall be treated as described in whichever of such 
        paragraphs is applicable under the determination), and
            ``(2) the plan shall take such actions as the corporation 
        determines necessary to implement the corporation's 
        determination under paragraph (1) by such date as the 
        corporation specifies in such determination.''.
    (b) Termination by Reason of Insolvency.--
            (1) In general.--Section 4041A(a) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1341a(a)) is 
        amended--
                    (A) in paragraph (2), by striking ``or'' at the 
                end;
                    (B) in paragraph (3)--
                            (i) by striking ``section 4203(b)(1)'' and 
                        inserting ``section 4021(b)(1)''; and
                            (ii) by striking the period and inserting 
                        ``; or''; and
                    (C) by adding at the end the following:
            ``(4) becoming insolvent (within the meaning of section 
        4245(b)(1)).''.
            (2) Time of termination.--Section 4041A(b) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1341a(b)) is 
        amended by adding at the end the following new paragraphs:
    ``(3) Except as provided in paragraph (4), the date on which a plan 
terminates under paragraph (4) of subsection (a) is the first day of 
the seventh full plan month of the plan's first insolvency year under 
section 4245(b)(3).
    ``(4)(A) In the case of a multiemployer plan which is an insolvent 
plan on the date of enactment of this paragraph--
            ``(i) paragraph (4) of subsection (a) shall apply to such 
        plan unless such plan applies for, and receives, a special 
        partition under section 4233A, and
            ``(ii) the date on which plan terminates shall be 
        determined under subparagraph (B).
    ``(B) In the case of a plan described in subparagraph (A), the date 
on which a plan terminates under paragraph (4) of subsection (a) is--
            ``(i) if the plan is not eligible for a special partition 
        under section 4233A, the first day of the seventh full plan 
        month following such date of enactment, except that such plan 
        may, notwithstanding the amendment required to be adopted by 
        the plan under section 4245(a), continue to provide service 
        credit solely for purposes of vesting under the plan until such 
        time as the plan's available resources are not sufficient to 
        pay benefits under the plan, and
            ``(ii) if the plan applies for such special partition but 
        the corporation does not approve it, the first day of the 
        seventh full plan month following the final determination of 
        the corporation disallowing such special partition.''.
            (3) Adoption of amendment providing for no service 
        credit.--Section 4245(a) of such Act (29 U.S.C. 1426(a)), as 
        amended by this Act, is amended by adding at the end the 
        following: ``The insolvent multiemployer plan shall also, at 
        the time of becoming insolvent, adopt an amendment which 
        provides that participants will receive no credit for any 
        purpose under the plan for service with any employer after the 
        date specified in 4041A(b)(3) or (4), whichever is 
        applicable.''.
            (4) Other amendments.--Section 4041A of such Act of 1974 
        (29 U.S.C. 1341a) is amended--
                    (A) in subsection (c)--
                            (i) in the matter preceding paragraph (1)--
                                    (I) by striking ``Except'' and 
                                inserting ``Consistent with the 
                                provisions of section 4281, and 
                                except''; and
                                    (II) by striking ``paragraph (2)'' 
                                and inserting ``paragraph (1), (2), or 
                                (4)'';
                            (ii) in paragraph (1), by striking ``and'' 
                        at the end;
                            (iii) by redesignating paragraph (2) as 
                        paragraph (3); and
                            (iv) by inserting after paragraph (1) the 
                        following:
            ``(2) suspend the payment of benefits in excess of the 
        level of basic benefits, and'';
                    (B) by striking subsection (d) and redesignating 
                subsections (e) and (f) as subsections (d) and (e), 
                respectively; and
                    (C) in subsection (d), as so redesignated--
                            (i) by striking ``paragraph (1) or (3)'' 
                        and inserting ``paragraph (1), (3), or (4)'';
                            (ii) by striking ``termination date, 
                        unless'' and inserting ``termination date and 
                        the total contribution amount shall be not less 
                        than the average amount of the highest 3 
                        contributions in the previous 10 years, 
                        unless''; and
                            (iii) by adding at the end the following 
                        new sentence: ``Any liability under section 
                        4201 due by an employer that withdraws from the 
                        plan after the plan termination date shall be 
                        offset by the contributions made under this 
                        subsection subsequent to the plan 
                        termination.''.
    (c) Pooling of Assets.--Section 4041A of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341a), as amended by this 
section, is further amended by adding at the end the following:
    ``(g) Pooling of Assets.--Notwithstanding any other provision of 
this title, the corporation is authorized to pool assets of terminated 
or insolvent multiemployer plans with fewer than 5,000 participants or 
to consolidate such plans by merger, for purposes of administration, 
investment, payment of liabilities of all such plans, and such other 
purposes as it determinates to be appropriate in the administration of 
this title, if it determines that such action would reduce 
administrative expenses or avoid an increased risk of loss. The 
corporation may exercise this consolidation authority by administrative 
action without petitioning a court for an order to replace the plan's 
governing board of trustees, including receivership by the corporation, 
or to consolidate or merge any plans.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this section, except that the 
amendments made by subsection (b) shall also apply to multiemployer 
plans that are insolvent on such date.

SEC. 114. BENEFITS UNDER CERTAIN TERMINATED PLANS.

    Section 4281 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1441) is amended--
            (1) in subsection (a), by striking ``section 4041A(d)'' and 
        inserting ``Section 4041A(c)'';
            (2) by striking subsections (b), (c), and (d); and
            (3) by inserting after subsection (a) the following:
    ``(b)(1) If a plan has been terminated pursuant to paragraph (1), 
(2), or (4) of section 4041A(a), the plan sponsor shall amend the plan 
to suspend benefits in excess of the level of basic benefits.
    ``(2) Any plan amendment required by this subsection shall, in 
accordance with regulations prescribed by the corporation, take effect 
not later than 6 months after the date on which the plan is terminated.
    ``(c)(1) The value of nonforfeitable benefits under a terminated 
plan described in subsection (a), and the value of the plan's assets, 
shall be determined in writing, in accordance with regulations 
prescribed by the corporation, as of the end of the plan year during 
which section 4041A(c) becomes applicable to such plan.
    ``(2) For purposes of this subsection, plan assets include 
outstanding claims for withdrawal liability (within the meaning of 
section 4001(a)(12).
    ``(3) If, according to the determination made under paragraph (1), 
the value of plan assets is sufficient to pay nonforfeitable benefits, 
the plan sponsor shall use the plan assets to purchase irrevocable 
commitments to provide such benefits from an insurer or otherwise 
distribute plan assets in satisfaction of the plan's obligations with 
respect to nonforfeitable benefits, in accordance with all applicable 
regulations.
    ``(d)(1) If, according to the determination made under subsection 
(c)(1), the value of nonforfeitable benefits exceeds the value of the 
plan's assets, the plan sponsor shall amend the plan to reduce benefits 
under the plan as provided in paragraph (2).
    ``(2) Any plan amendment required by paragraph (1) shall, in 
accordance with regulations prescribed by the corporation--
            ``(A) reduce benefits to the extent necessary to eliminate 
        any benefits that are not nonforfeitable;
            ``(B) reduce accrued benefits to the extent that those 
        benefits are not eligible for the corporation's guarantee under 
        section 4022A(b); and
            ``(C) suspend payment of benefits which are not basic 
        benefits under section 4022A(c).
    ``(e) The powers and duties under this section of a sponsor of a 
plan that is terminated as described in section 4041A, before or after 
the plan begins receiving financial assistance under section 4261, 
shall be prescribed by the corporation, and the corporation shall 
prescribe by regulation the requirements which assure that plan 
participants and beneficiaries receive adequate notice of any 
suspension of benefits.''.

                 Subtitle C--Pension Insurance Modeling

SEC. 121. PENSION INSURANCE MODELING.

    Section 40233(a) of the Moving Ahead for Progress in the 21st 
Century Act (126 Stat. 857; Public Law 112-141) is amended--
            (1) in the subsection heading, by striking ``Annual'';
            (2) by striking ``The Pension'' and inserting ``Not later 
        than January 1, 2025, and not less frequently than once every 5 
        years thereafter, the Pension'';
            (3) by striking ``an annual peer review'' and inserting ``a 
        peer review''; and
            (4) by striking the third sentence.

    TITLE II--FUNDING RULES, WITHDRAWAL LIABILITY, AND OTHER REFORMS

      Subtitle A--Minimum Funding Standard for Multiemployer Plans

SEC. 201. VALUATION OF PLAN LIABILITIES.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) Charges to funding standard account.--Subparagraph (B) 
        of section 431(b)(2) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking ``and'' at the end of clause (iii),
                    (B) by redesignating clause (iv) as clause (v),
                    (C) by striking ``actuarial assumptions'' in clause 
                (v), as so redesignated, and inserting ``actuarial 
                assumptions not described in clause (iv)'', and
                    (D) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) separately, with respect to each 
                        plan year, an amount equal to the excess, if 
                        any, of--
                                    ``(I) the net increase (if any) in 
                                the unfunded past service liability 
                                resulting from a reduction in the 
                                interest rate under paragraph (6)(A) 
                                from the rate which applied for the 
                                preceding year, over
                                    ``(II) the amount in the investment 
                                risk reduction subaccount under 
                                paragraph (9),
                        over a period of 30 years, and''.
            (2) Credits to funding standard account.--Clause (iii) of 
        section 431(b)(3)(B) of such Code is amended by inserting ``, 
        except that any amount of net gain resulting from an increase 
        in the interest rate from the rate which applied for the 
        preceding year shall first be offset against any unamortized 
        amounts charged under paragraph (2)(B)(iv)'' after ``15 plan 
        years''.
            (3) Interest.--Paragraph (6) of section 431(b) of such Code 
        is amended to read as follows:
            ``(6) Interest.--
                    ``(A) In general.--The funding standard account 
                (and items therein) shall be charged or credited (as 
                determined under regulations prescribed by the 
                Secretary) with interest at the appropriate rate 
                consistent with the rate or rates of interest used 
                under the plan to determine the unfunded past service 
                liability. Notwithstanding any other provision of this 
                section, the interest rate used shall not exceed--
                            ``(i) 7.5 percent for actuarial valuations 
                        for plan years beginning after December 31, 
                        2021, and before January 1, 2024,
                            ``(ii) 7.25 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2023, and before January 1, 2028,
                            ``(iii) 7.0 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2027, and before January 1, 2032,
                            ``(iv) 6.75 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2031, and before January 1, 2036, 
                        and
                            ``(v) 6.5 percent for actuarial valuations 
                        for plan years beginning after December 31, 
                        2035.
                Notwithstanding subsection (c), the plan sponsor may 
                direct the plan actuary to use any rate which is not 
                lower than the rate determined under subparagraph (B) 
                (without regard to this sentence) and not greater than 
                the rate determined under the preceding sentence for 
                the plan year. Nothing in this subparagraph shall 
                require a plan to take into account the interest rate 
                limitation for subsequent years under the preceding 
                sentence in determining actuarial valuations as of any 
                given year.
                    ``(B) Interest rate for determining normal cost.--
                Notwithstanding any other provision of this section, 
                the interest rate used for determining the normal cost 
                to be charged under paragraph (2) for the plan year 
                shall be equal to the least of--
                            ``(i) the interest rate applicable under 
                        subparagraph (A) for the plan year,
                            ``(ii) a rate equal to the 24-month average 
                        of the third segment rate (as defined in 
                        section 430(h)(2)(C)(iii)), as of the date the 
                        determination is made, without regard to 
                        section 430(h)(2)(C)(iv), increased by 2 
                        percent, or
                            ``(iii) 5.5 percent.
                    ``(C) Exception for certain partitioned plans.--
                Notwithstanding subparagraph (A), in the case of a plan 
                which has been partitioned under section 4233A of the 
                Employee Retirement Income Security Act of 1974, the 
                rate of interest used to determine normal cost under 
                subparagraph (B) shall also be used to determine the 
                unfunded past service liability of the plan.
                    ``(D) Exception for plans using a spread-gain 
                method.--Notwithstanding subparagraph (B), and except 
                as noted in subparagraph (C), in the case of a plan 
                which uses a funding method other than the unit credit 
                method or entry-age normal method--
                            ``(i) the normal cost and past service 
                        liability shall be calculated using interest 
                        rates under subparagraph (A),
                            ``(ii) an additional normal cost component 
                        shall be calculated in the same manner as under 
                        paragraph (9)(B)(i) based on the unit credit 
                        method, and
                            ``(iii) the amount determined under clause 
                        (ii) shall be added to the otherwise calculated 
                        normal cost under the funding method in lieu of 
                        the credit under paragraph (9)(B)(i).''.
            (4) Investment risk reduction subaccount.--Subsection (b) 
        of section 431 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(9) Investment risk reduction subaccount.--For purposes 
        of this part--
                    ``(A) In general.--The funding standard account 
                shall include an investment risk reduction subaccount 
                used solely to offset losses attributable to reductions 
                in the rate of interest used to determine the unfunded 
                past service liability of the plan over time.
                    ``(B) Annual adjustments.--For a plan year, the 
                investment risk reduction subaccount shall be--
                            ``(i) credited with the net change (if any) 
                        in the normal cost for the immediately 
                        preceding plan year due to recalculation to 
                        reflect the difference in interest rates under 
                        paragraphs (6)(A) and (6)(B),
                            ``(ii) charged with the amount of any 
                        reduction applied under paragraph 
                        (2)(B)(iv)(II), or, in the case of a plan using 
                        a spread-gain method, an amount equal to the 
                        lesser of--
                                    ``(I) the entire remaining balance 
                                of such subaccount immediately before 
                                the charge, or
                                    ``(II) the amount of the increase 
                                in the present value of benefits 
                                resulting from a decrease in the 
                                interest rate from the rate which 
                                applied for the preceding year,
                            ``(iii) at the election of the plan 
                        sponsor, and pursuant to regulations to be 
                        issued by the Secretary, credited with the net 
                        decrease in the unfunded past service liability 
                        (or present value of benefits, in the case of a 
                        plan using a spread-gain method) resulting from 
                        an increase in the interest rate under 
                        paragraph (6)(A), not to exceed the amount of 
                        any previous charges to the account under 
                        clause (ii), reduced by any previous credits 
                        under this clause, and
                            ``(iv) adjusted with interest at the rate 
                        under paragraph (6)(A), as applicable.''.
            (5) Determinations to be made under funding method.--
        Paragraph (1) of section 431(c) of such Code is amended to read 
        as follows:
            ``(1) Determinations to be made under funding method.--
                    ``(A) In general.--For purposes of this part, 
                normal costs, accrued liability, and experience gains 
                and losses used to determine the unfunded past service 
                liability for the plan shall be determined under the 
                funding method used to determine costs under the plan 
                and based on the interest rate under subparagraph (A) 
                (or subparagraph (C), if applicable) of subsection 
                (b)(6).
                    ``(B) Adjustments for funding standard account 
                normal cost.--Notwithstanding subparagraph (A), in the 
                case of a plan using the unit credit funding method or 
                the entry-age normal funding method, the normal cost 
                for a plan year to be charged to the funding standard 
                account under subsection (b)(2) shall be determined 
                under the funding method used to determine costs under 
                the plan and based on the interest rate under 
                subsection (b)(6)(B).''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Charges to funding standard account.--Subparagraph (B) 
        of section 304(b)(2) of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1084(b)(2)) is amended--
                    (A) by striking ``and'' at the end of clause (iii),
                    (B) by redesignating clause (iv) as clause (v),
                    (C) by striking ``actuarial assumptions'' in clause 
                (v), as so redesignated, and inserting ``actuarial 
                assumptions not described in clause (iv)'', and
                    (D) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) separately, with respect to each 
                        plan year, an amount equal to the excess, if 
                        any, of--
                                    ``(I) the net increase (if any) in 
                                the unfunded past service liability 
                                resulting from a reduction in the 
                                interest rate under paragraph (6)(A) 
                                from the rate which applied for the 
                                preceding year, over
                                    ``(II) the amount in the investment 
                                risk reduction subaccount under 
                                paragraph (9),
                        over a period of 30 years, and''.
            (2) Credits to funding standard account.--Clause (iii) of 
        section 304(b)(3)(B) of such Act (29 U.S.C. 1084(b)(3)(B)) is 
        amended by inserting ``, except that any amount of net gain 
        resulting from an increase in the interest rate from the rate 
        which applied for the preceding year shall first be offset 
        against any unamortized amounts charged under paragraph 
        (2)(B)(iv)'' after ``15 plan years''.
            (3) Interest.--
                    (A) In general.--Paragraph (6) of section 304(b) of 
                such Act (29 U.S.C. 1084(b)) is amended to read as 
                follows:
            ``(6) Interest.--
                    ``(A) In general.--The funding standard account 
                (and items therein) shall be charged or credited (as 
                determined under regulations prescribed by the 
                Secretary) with interest at the appropriate rate 
                consistent with the rate or rates of interest used 
                under the plan to determine the unfunded past service 
                liability. Notwithstanding any other provision of this 
                section, this interest rate shall not exceed--
                            ``(i) 7.5 percent for actuarial valuations 
                        for plan years beginning after December 31, 
                        2021, and before January 1, 2024,
                            ``(ii) 7.25 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2023, and before January 1, 2028,
                            ``(iii) 7.0 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2027, and before January 1, 2032,
                            ``(iv) 6.75 percent for actuarial 
                        valuations for plan years beginning after 
                        December 31, 2031, and before January 1, 2036, 
                        and
                            ``(v) 6.5 percent for actuarial valuations 
                        for plan years beginning after December 31, 
                        2035.
                Notwithstanding subsection (c), the plan sponsor may 
                direct the plan actuary to use any rate which is not 
                lower than the rate determined under subparagraph (B) 
                (without regard to this sentence) and not greater than 
                the rate determined under the preceding sentence for 
                the plan year. Nothing in this subparagraph shall 
                require a plan to take into account the interest rate 
                limitation for subsequent years under the preceding 
                sentence in determining actuarial valuations as of any 
                given year.
                    ``(B) Interest rate for determining normal cost.--
                Notwithstanding any other provision of this section, 
                the interest rate used for determining the normal cost 
                to be charged under paragraph (2) for the plan year 
                shall be equal to the least of--
                            ``(i) the interest rate applicable under 
                        subparagraph (A) for the plan year,
                            ``(ii) a rate equal to the 24-month average 
                        of the third segment rate (as defined in 
                        section 303(h)(2)(C)(iii)), as of the date the 
                        determination is made, without regard to 
                        section 303(h)(2)(C)(iv), increased by 2 
                        percent, or
                            ``(iii) 5.5 percent.
                    ``(C) Exception for certain partitioned plans.--
                Notwithstanding subparagraph (A), in the case of a plan 
                which has been partitioned under section 4233A, the 
                rate of interest used to determine normal cost under 
                subparagraph (B) shall also be used to determine the 
                unfunded past service liability of the plan.
                    ``(D) Exception for plans using a spread-gain 
                method.--Notwithstanding subparagraph (B), and except 
                as noted in subparagraph (C), in the case of a plan 
                which uses a funding method other than the unit credit 
                method or entry-age normal method--
                            ``(i) the normal cost and past service 
                        liability shall be calculated using interest 
                        rates under subparagraph (A),
                            ``(ii) an additional normal cost component 
                        shall be calculated in the same manner as under 
                        paragraph (9)(B)(i) based on the unit credit 
                        method, and
                            ``(iii) the amount determined under clause 
                        (ii) shall be added to the otherwise calculated 
                        normal cost under the funding method in lieu of 
                        the credit under paragraph (9)(B)(i).''.
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 4233A(h)(4) of such Act, as added by this Act, 
                is amended by inserting ``, consistent with section 
                304(b)(6)(C)'' before the period.
            (4) Investment risk reduction subaccount.--Subsection (b) 
        of section 304 of such Act (29 U.S.C. 1084) is amended by 
        adding at the end the following new paragraph:
            ``(9) Investment risk reduction subaccount.--For purposes 
        of this part--
                    ``(A) In general.--The funding standard account 
                shall include an investment risk reduction subaccount 
                used solely to offset losses attributable to reductions 
                in the rate of interest used to determine the unfunded 
                past service liability of the plan over time.
                    ``(B) Annual adjustments.--For a plan year, the 
                investment risk reduction subaccount shall be--
                            ``(i) credited with the net change (if any) 
                        in the normal cost for the immediately 
                        preceding plan year due to recalculation to 
                        reflect the difference in interest rates under 
                        paragraphs (6)(A) and (6)(B),
                            ``(ii) charged with the amount of any 
                        reduction applied under paragraph 
                        (2)(B)(iv)(II), or, in the case of a plan using 
                        a spread-gain method, an amount equal to the 
                        lesser of--
                                    ``(I) the entire remaining balance 
                                of such subaccount immediately before 
                                the charge, or
                                    ``(II) the amount of the increase 
                                in the present value of benefits 
                                resulting from a decrease in the 
                                interest rate from the rate which 
                                applied for the preceding year,
                            ``(iii) at the election of the plan 
                        sponsor, and pursuant to regulations to be 
                        issued by the Secretary of the Treasury, 
                        credited with the net decrease in the unfunded 
                        past service liability (or present value of 
                        benefits, in the case of a plan using a spread-
                        gain method) resulting from an increase in the 
                        interest rate under paragraph (6)(A), not to 
                        exceed the amount of any previous charges to 
                        the account under clause (ii), reduced by any 
                        previous credits under this clause, and
                            ``(iv) adjusted with interest at the rate 
                        under paragraph (6)(A), as applicable.''.
            (5) Determinations to be made under funding method.--
        Paragraph (1) of section 304(c) of such Act (29 U.S.C. 1084(c)) 
        is amended to read as follows:
            ``(1) Determinations to be made under funding method.--
                    ``(A) In general.--For purposes of this part, 
                normal costs, accrued liability, and experience gains 
                and losses used to determine the unfunded past service 
                liability for the plan shall be determined under the 
                funding method used to determine costs under the plan 
                and based on the interest rate under subparagraph (A) 
                (or subparagraph (C), if applicable) of subsection 
                (b)(6).
                    ``(B) Adjustments for funding standard account 
                normal cost.--Notwithstanding subparagraph (A), in the 
                case of a plan using the unit credit funding method or 
                the entry-age normal funding method, the normal cost 
                for a plan year to be charged to the funding standard 
                account under subsection (b)(2) shall be determined 
                under the funding method used to determine costs under 
                the plan and based on the interest rate under 
                subsection (b)(6)(B).''.
    (c) Plan Petitions To Increase Interest Assumptions.--
            (1) In general.--Pursuant to regulations to be issued by 
        the Secretary of the Treasury (or such Secretary's delegate), a 
        multiemployer plan must petition the Secretary of the Treasury 
        (or delegate) for any increase in the interest assumption made 
        after a 30-year amortization base is established in accordance 
        with section 431(b)(2)(B)(iv) of the Internal Revenue Code of 
        1986 and section 304(b)(2)(B)(iv) of the Employee Retirement 
        Income Security Act of 1974 (as added by this Act). The 
        Secretary of the Treasury (or delegate) shall approve such 
        request upon a determination that the change is reasonably 
        supported by changes in the financial markets or changes in the 
        plan's asset allocation, and is consistent with the manner in 
        which prior changes in interest rate assumptions were 
        determined since the date of the enactment of this Act.
            (2) Approval.--If the Secretary of the Treasury (or such 
        Secretary's delegate) does not approve or deny any petition 
        submitted pursuant to paragraph (1) within 180 days of 
        receiving such petition, such petition shall be deemed to have 
        been approved.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2021.

      Subtitle B--Additional Funding Rules for Multiemployer Plans

                     PART I--PLAN STATUS AMENDMENTS

SEC. 211. AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.

    (a) Rules Applying to All Multiemployer Plans.--
            (1) In general.--Subsection (a) of section 432 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``a multiemployer plan in effect on 
                July 16, 2006--'' and inserting ``any multiemployer 
                plan--'',
                    (B) by redesignating paragraphs (1), (2), and (3) 
                as paragraphs (2), (3), and (4), respectively,
                    (C) by inserting before paragraph (2), as so 
                redesignated, the following new paragraph:
            ``(1) the rules of subsection (c) shall apply,'',
                    (D) by striking ``subsection (c)'' in paragraph 
                (2)(A), as so redesignated, and inserting ``subsection 
                (d)'',
                    (E) by striking ``subsection (d)'' in paragraph 
                (2)(B), as so redesignated, and inserting ``subsection 
                (e)'',
                    (F) by striking ``subsection (e)'' in paragraph 
                (3)(A), as so redesignated, and inserting ``subsection 
                (f)'',
                    (G) by striking ``subsection (f)'' in paragraph 
                (3)(B), as so redesignated, and inserting ``subsection 
                (g)'', and
                    (H) by striking ``subsection (e)(9)'' in paragraph 
                (4)(B), as so redesignated, and inserting ``subsection 
                (f)(9)''.
            (2) Rules of immediate application.--Section 432 of such 
        Code is amended--
                    (A) by redesignating subsections (c), (d), (e), 
                (f), (g), (h), (i), and (j) as subsections (d), (e), 
                (f), (g), (h), (i), (j), and (k), respectively, and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Rules Applying to All Multiemployer Plans.--
            ``(1) Benefit increases.--
                    ``(A) Increases by plan amendment.--The plan 
                sponsor of any multiemployer plan shall not adopt a 
                plan amendment which increases plan liabilities (as 
                determined as of the date of the adoption of the 
                amendment) due to any increase in benefits, any change 
                in the accrual rate of benefits, or any change in the 
                rate at which benefits become nonforfeitable, unless--
                            ``(i) if the plan is in unrestricted status 
                        as of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that the increase in liabilities will 
                        not cause the plan to no longer be in 
                        unrestricted status,
                            ``(ii) if the plan is in stable status as 
                        of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that any such increase or change in 
                        benefits will be paid from additional 
                        contributions not required by any collective 
                        bargaining agreement in effect as of the 
                        adoption of the amendment,
                            ``(iii) if the plan is in endangered status 
                        as of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that any such increase or change in 
                        benefits will be paid from additional 
                        contributions not contemplated in any current 
                        funding improvement plan, or
                            ``(iv) the increase or change in benefits 
                        is required by law or is a de minimis change.
                    ``(B) Increases under critical or critical and 
                declining status.--Unless required as a condition of 
                qualification under part I of this subchapter or to 
                comply with other applicable law, in the case of a plan 
                which is in critical or critical and declining status, 
                no increase in benefits, change in the accrual rate of 
                benefits, or change in the rate at which benefits 
                become nonforfeitable which increases plan liabilities 
                shall take effect while the plan is in such status, 
                without regard to whether such increase or change would 
                otherwise occur under the provisions of the plan, 
                unless the increase in plan liabilities due to the 
                change is de minimis.
            ``(2) Contribution reductions.--The plan sponsor of any 
        multiemployer plan shall not accept any collective bargaining 
        agreement or participation agreement which reduces the rate of 
        contributions under the plan for any participants, suspends 
        contributions with respect to any period of service, or 
        directly or indirectly excludes younger, probationary, or newly 
        hired employees from participation in the plan, unless--
                    ``(A) the plan is in unrestricted status as of the 
                adoption of such agreement and the plan actuary 
                certifies in accordance with subsection (b)(4) that the 
                reduction in contributions will not cause the plan to 
                no longer be in unrestricted status,
                    ``(B) the reduction in contributions is accompanied 
                by a reduction in future accruals for the affected 
                participants, and the plan actuary certifies in 
                accordance with subsection (b)(4) that the combined 
                effect of the changes in contributions and benefits is 
                not projected to reduce the funded percentage of the 
                plan in any year, or
                    ``(C) subject to regulations issued by the 
                Secretary, the plan sponsor reasonably determines that 
                the acceptance of such an agreement is in the best 
                interests of plan participants and beneficiaries and 
                that rejection of the agreement would have an adverse 
                financial effect on the plan.''.
            (3) Stable and unrestricted plans.--Subsection (b) of 
        section 432 of such Code is amended--
                    (A) by striking ``Endangered and Critical'' in the 
                heading,
                    (B) by redesignating paragraphs (1), (2), (3), (4), 
                (5), and (6) as paragraphs (2), (3), (4), (5), (6), and 
                (7), respectively, and
                    (C) by inserting before paragraph (2) the following 
                new paragraph:
            ``(1) Stable and unrestricted status.--
                    ``(A) Stable.--A multiemployer plan is in stable 
                status for a plan year if, as determined by the plan 
                actuary under paragraph (4), the plan is not in 
                unrestricted status for the plan year, is not in 
                endangered, critical, or critical and declining status 
                for the plan year, and is not described in paragraph 
                (6).
                    ``(B) Unrestricted.--A multiemployer plan is in 
                unrestricted status for a plan year if, as determined 
                by the plan actuary under paragraph (4)--
                            ``(i) the plan is not in endangered, 
                        critical, or critical and declining status for 
                        the plan year,
                            ``(ii) the plan is not described in 
                        paragraph (6), and
                            ``(iii) as of the beginning of the plan 
                        year--
                                    ``(I) the plan's current liability 
                                funded percentage for such plan year is 
                                at least 70 percent and the plan's 
                                projected funded percentage as of the 
                                first day of the 15th succeeding plan 
                                year is at least 115 percent, or
                                    ``(II) the plan's current liability 
                                funded percentage for such plan year is 
                                at least 80 percent.
                    ``(C) Current liability funded percentage.--For 
                purposes of this section, the term `current liability 
                funded percentage' means the percentage equal to a 
                fraction the numerator of which is the value of plan 
                assets (as determined for purposes of section 
                431(c)(6)(A)(ii)(II)) and the denominator of which is 
                the current liabilities of the plan (as defined in 
                section 431(c)(6)(D)).''.
            (4) Amendment to annual certification by plan actuary.--
        Subparagraph (A) of paragraph (4) (as redesignated by paragraph 
        (3)) of section 432(b) of such Code is amended by inserting 
        ``whether or not the plan is in unrestricted or stable status 
        for such plan year,'' in clause (i) before ``whether or not the 
        plan is in endangered status''.
            (5) Conforming amendments.--
                    (A) Paragraphs (2) and (3) of section 432(b) of 
                such Code, as redesignated by paragraph (3), are each 
                amended by striking ``paragraph (3)'' and inserting 
                ``paragraph (4)''.
                    (B) Section 432(b)(2) of such Code, as so 
                redesignated and amended, is further amended by 
                striking ``paragraph (5)'' and inserting ``paragraph 
                (6)''.
                    (C) Section 432(b)(4) of such Code, as so 
                redesignated, is amended--
                            (i) by striking ``paragraph (4)'' in 
                        subparagraph (B)(iv) thereof and inserting 
                        ``paragraph (5)'',
                            (ii) by striking ``subsection (e)(9)'' both 
                        places it appears in subparagraph (B)(v) and 
                        inserting ``subsection (f)(9)'',
                            (iii) by striking ``subsection 
                        (e)(3)(A)(ii)'' in subparagraph (B)(v) and 
                        inserting ``subsection (f)(3)(A)(ii)'',
                            (iv) by striking ``subsection (e)'' in 
                        subparagraph (B)(v) and inserting ``subsection 
                        (f)'',
                            (v) by striking ``paragraph (4)'' each 
                        place it appears in subparagraphs (D)(i) and 
                        (D)(v) thereof and inserting ``paragraph (5)'',
                            (vi) by striking ``subsection (e)(8)'' in 
                        subparagraph (D)(ii)(I) thereof and inserting 
                        ``subsection (f)(8)'',
                            (vii) by striking ``paragraph (5)'' in 
                        subparagraph (D)(iii) thereof and inserting 
                        ``paragraph (6)'', and
                            (viii) by striking ``(iii) In the case of'' 
                        in subparagraph (D)(iii) thereof and inserting 
                        ``(iii) Special rule.--''.
                    (D) Section 432(b)(5) of such Code, as redesignated 
                by paragraph (3), is amended--
                            (i) by striking ``paragraph (2)'' and 
                        inserting ``paragraph (3)'',
                            (ii) by striking ``paragraph (3)(B)(iv)'' 
                        and inserting ``paragraph (4)(B)(iv)'',
                            (iii) by striking ``paragraph (3)'' in 
                        subparagraph (A) thereof and inserting 
                        ``paragraph (4)'',
                            (iv) by striking ``paragraph (3)(A)'' in 
                        subparagraph (A) thereof and inserting 
                        ``paragraph (4)(A)'',
                            (v) by striking ``paragraph (2)'' in 
                        subparagraph (B) thereof and inserting 
                        ``paragraph (3)'', and
                            (vi) by striking ``subsection (e)(4)(B)'' 
                        in subparagraph (C) thereof and inserting 
                        ``subsection (f)(4)(B)''.
                    (E) Section 432(b)(6)(A) of such Code, as so 
                redesignated, is amended--
                            (i) by striking ``paragraph (3)(A)'' and 
                        inserting ``paragraph (4)(A)'',
                            (ii) by striking ``paragraph (1)(A)'' and 
                        inserting ``paragraph (2)(A)'', and
                            (iii) by striking ``paragraph (1)(B)'' and 
                        inserting ``paragraph (2)(B)''.
                    (F) Section 432(b)(7) of such Code, as so 
                redesignated, is amended by striking ``paragraph (2)'' 
                and inserting ``paragraph (3)''.
                    (G) Paragraphs (1)(A), (4)(A)(ii), (4)(C)(i), 
                (4)(C)(ii), (4)(D), (5)(A)(i), (5)(B), and (8) of 
                subsection (d), and subsections (e)(2), (f)(1)(A), 
                (f)(4)(B)(i), (f)(4)(B)(ii)(I), (f)(5), and (g)(3) of 
                section 432 of such Code, as respectively redesignated 
                by paragraph (2), are each amended by striking 
                ``subsection (b)(3)(A)'' and inserting ``subsection 
                (b)(4)(A)''.
                    (H) Section 432(d)(3)(A)(i)(I) of such Code, as so 
                redesignated, is amended by striking ``paragraph 
                (b)(3)'' and inserting ``subsection (b)(4)''.
                    (I) Section 432(d)(4)(D) of such Code, as so 
                redesignated, is amended by striking ``subsection (d)'' 
                and inserting ``subsection (e)''.
                    (J) Section 432(e) of such Code, as so 
                redesignated, is amended to read as follows:
    ``(e) Rules for Operation of Plan During Adoption and Improvement 
Periods.--A plan may not be amended after the date of the adoption of a 
funding improvement plan under subsection (d) so as to be inconsistent 
with the funding improvement plan or the requirements of subsection 
(c).''.
                    (K) Clauses (i)(I) and (ii)(I) of section 
                432(f)(4)(B) of such Code, as so redesignated, are each 
                amended by striking ``subsection (b)(2)'' and inserting 
                ``subsection (b)(3)''.
                    (L) Subsections (f)(8)(A)(ii) and (g)(2)(A) of 
                section 432 of such Code, as so redesignated, are each 
                amended by striking ``subsection (b)(3)(D)'' and 
                inserting ``subsection (b)(4)(D)''.
                    (M) Section 432(f)(9)(J) of such Code, as so 
                redesignated, is amended--
                            (i) by striking ``subsection (b)(3)'' and 
                        inserting ``subsection (b)(4)'', and
                            (ii) by striking ``paragraphs (1) and (2)'' 
                        in clause (i) thereof and inserting 
                        ``paragraphs (2) and (3)''.
                    (N) Subparagraphs (A) and (B) of section 432(g)(1) 
                of such Code, as so redesignated, are each amended by 
                striking ``subsection (e)'' and inserting ``subsection 
                (f)''.
                    (O) Paragraph (2)(A) of section 432(g) of such 
                Code, as so redesignated, is amended by striking 
                ``(b)(3)(D)'' and inserting ``(b)(4)(D)''.
                    (P) Section 432(h) of such Code, as so 
                redesignated, is amended--
                            (i) by striking ``subsection (e)(8) or 
                        (f)'' in paragraph (1) thereof and inserting 
                        ``subsection (f)(8) or (g)'',
                            (ii) by striking ``subsection (e)(9)'' in 
                        paragraph (1) thereof and inserting 
                        ``subsection (f)(9)'',
                            (iii) by striking ``subsection (e)(7)'' in 
                        paragraph (2) thereof and inserting 
                        ``subsection (f)(7)'', and
                            (iv) by striking ``rehabilitation plan'' 
                        and all that follows in paragraph (3)(B) 
                        thereof and inserting ``rehabilitation plan. 
                        The preceding sentence shall not apply to any 
                        increase in contribution requirements due to 
                        increased levels of work, employment, or 
                        periods for which compensation is provided, 
                        except to the extent such an increase is used 
                        to provide an increased accrual rate of 
                        benefits or change in the rate at which 
                        benefits become nonforfeitable which increases 
                        plan liabilities.''.
                    (Q) Section 432(i) of such Code, as so 
                redesignated, is amended--
                            (i) by striking ``subsection (c)'' and 
                        inserting ``subsection (d)'', and
                            (ii) by striking ``subsection (e)'' and 
                        inserting ``subsection (f)''.
                    (R) Section 432(j)(2) of such Code, as so 
                redesignated, is amended by striking ``subsections (c) 
                and (e)'' and inserting ``subsections (d) and (f)''.
                    (S) Section 412(b)(3) of such Code is amended by 
                striking ``section 432(e)'' and inserting ``section 
                432(f)''.
                    (T) Section 418E of such Code, as amended by this 
                Act, is further amended--
                            (i) by striking ``432(b)(2)'' each place it 
                        appears in subsections (c)(1), (c)(2), (d)(1), 
                        and (d)(2), as redesignated by section 112, and 
                        inserting ``432(b)(3)'', and
                            (ii) by striking ``432(e)(9)'' in 
                        subsection (g), as so redesignated, and 
                        inserting ``432(f)(9)''.
                    (U) Section 4971(g) of such Code is amended--
                            (i) by striking ``432(e)'' in paragraph 
                        (3)(B)(i) and inserting ``432(f)'',
                            (ii) by striking ``432(b)(3)(A)(ii)'' in 
                        paragraph (3)(B)(ii) and inserting 
                        ``432(b)(4)(A)(i)(II)'',
                            (iii) by striking ``432(e)(1)(A)'' in 
                        paragraph (4)(B)(ii) and inserting 
                        ``432(f)(1)(A)'', and
                            (iv) by striking ``432(j)(9)'' in paragraph 
                        (4)(C)(ii) and inserting ``432(k)(9)''.
                    (V) Subsection (c)(1) of section 4980I of such 
                Code, as added by this Act, is amended by adding at the 
                end the following: ``Such term shall not include such 
                an original plan for any plan year in which the plan is 
                in unrestricted status (as defined in section 
                432(b)(1)(B)).''.
                    (W) The heading of section 432 of such Code is 
                amended by striking ``in endangered status or critical 
                status''.
            (6) Withdrawal liability determination for plans emerging 
        from endangered or critical status.--Section 432(h) of such 
        Code, as redesignated by paragraph (2) and as amended by 
        paragraph (5), is further amended by striking paragraph (4) and 
        by inserting after paragraph (3) the following new paragraph:
            ``(4) Emergence from endangered or critical status.--
                    ``(A) In general.--In the case of increases in the 
                contribution rate (or other increases in contribution 
                requirements unless due to increased levels of work, 
                employment, or periods for which compensation is 
                provided) disregarded pursuant to paragraph (3), this 
                subsection shall cease to apply as of the later of--
                            ``(i) the end of the first plan year 
                        following the plan year in which the plan is no 
                        longer in endangered or critical status, or
                            ``(ii) the end of the plan year which 
                        includes the expiration date of the first 
                        collective bargaining agreement requiring plan 
                        contributions which expires after the plan is 
                        no longer in endangered or critical status.
                    ``(B) Highest contribution rate.--Notwithstanding 
                subparagraph (A), once the plan emerges from endangered 
                or critical status--
                            ``(i) increases in the contribution rate 
                        disregarded pursuant to paragraph (3) shall 
                        continue to be disregarded in determining the 
                        highest contribution rate under section 4219(c) 
                        of such Act for plan years during which the 
                        plan was in endangered or critical status, and
                            ``(ii) the highest contribution rate for 
                        purposes of such section shall be the greater 
                        of--
                                    ``(I) the sum of--
                                            ``(aa) the employer's 
                                        contribution rate as of the 
                                        later of the last day of the 
                                        last plan year ending before 
                                        December 31, 2014, and the last 
                                        day of the plan year for which 
                                        the employer first had an 
                                        obligation to contribute to the 
                                        plan, and
                                            ``(bb) any contribution 
                                        increases determined in 
                                        accordance with this section 
                                        after such later date and 
                                        before the date the employer 
                                        withdraws from the plan, or
                                    ``(II) the highest contribution 
                                rate for any plan year after the plan 
                                year which includes the earlier of--
                                            ``(aa) the expiration date 
                                        of the first collective 
                                        bargaining agreement applicable 
                                        to the withdrawing employer 
                                        requiring plan contributions 
                                        which expires after the plan is 
                                        no longer in endangered or 
                                        critical status, or
                                            ``(bb) the date as of which 
                                        the withdrawing employer 
                                        negotiated a contribution rate 
                                        effective after the plan year 
                                        in which the plan is no longer 
                                        in endangered or critical 
                                        status.''.
            (7) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Determination of Endangered Status.--Paragraph (2) of section 
432(b) of the Internal Revenue Code of 1986, as redesignated by 
subsection (a)(3), is amended to read as follows:
            ``(2) Endangered status.--A multiemployer plan is in 
        endangered status for a plan year if, as determined by the plan 
        actuary under paragraph (5), the plan is not in critical or 
        declining status for the plan year and is not described in 
        paragraph (7), and, as of the beginning of the plan year--
                    ``(A) the plan's funded percentage for such plan 
                year is less than 80 percent,
                    ``(B) the plan is projected to have an accumulated 
                funding deficiency for any of the 9 succeeding plan 
                years, taking into account any extension of 
                amortization periods under section 431(d), or
                    ``(C) the plan's projected funded percentage as of 
                the first day of the 15th succeeding plan year is less 
                than 100 percent.''.
    (c) Determination of Critical Status.--Paragraph (3) of section 
432(b) of the Internal Revenue Code of 1986, as redesignated by 
subsection (a)(3), is amended to read as follows:
            ``(3) Critical status.--
                    ``(A) In general.--A multiemployer plan is in 
                critical status for a plan year if, as determined by 
                the plan actuary under paragraph (5), the plan is not 
                in declining status for the plan year and, as of the 
                beginning of the plan year--
                            ``(i) the plan's funded percentage is less 
                        than 65 percent,
                            ``(ii) the plan has an accumulated funding 
                        deficiency for the plan year, or is projected 
                        to have such an accumulated funding deficiency 
                        for any of the 6 succeeding plan years, taking 
                        into account any extension of amortization 
                        periods under section 431(d), or
                            ``(iii) the plan's projected funded 
                        percentage as of the first day of the 15th 
                        succeeding plan year is less than 80 percent.
                    ``(B) Original plans.--Notwithstanding subparagraph 
                (A), a multiemployer plan which is an original plan 
                pursuant to section 4233A(d)(3) of the Employee 
                Retirement Income Security Act of 1974 shall be treated 
                as being in critical status for the period of 15 
                consecutive plan years beginning with the plan year 
                that includes the date of the partition under such 
                section 4233A.''.
    (d) Declining Status.--
            (1) In general.--
                    (A) The following provisions of section 432 of the 
                Internal Revenue Code of 1986 are each amended by 
                striking ``critical and declining'' each place it 
                appears and inserting ``declining'':
                            (i) Subsection (a)(4) (as redesignated by 
                        subsection (a)(1)).
                            (ii) Subparagraphs (A) and (B)(i) of 
                        subsection (b)(1), as added by subsection 
                        (a)(3).
                            (iii) Subsection (b)(4)(B)(v) (as 
                        redesignated by subsection (a)(3)), and the 
                        heading thereof.
                            (iv) Paragraph (1)(B), and the heading of 
                        such paragraph (1)(B), of subsection (c), as 
                        added by subsection (a)(2).
                            (v) The heading of paragraph (9) of 
                        subsection (f) (as redesignated by subsection 
                        (a)(2)).
                            (vi) Subparagraphs (A), (C), (G)(i), and 
                        (J) of subsection (f)(9) (as so redesignated).
                            (vii) Subsection (h)(1) (as so 
                        redesignated).
                    (B) Section 418E(g) of such Code, as amended by 
                section 112 and subsection (a), is further amended by 
                striking ``critical and declining status'' and 
                inserting ``declining status''.
            (2) Determination of declining status.--
                    (A) In general.--Subsection (b) of section 432 of 
                such Code is amended--
                            (i) by striking paragraph (7), as 
                        redesignated by subsection (a)(3),
                            (ii) by redesignating paragraphs (4), (5), 
                        and (6), as so redesignated, as paragraphs (5), 
                        (6), and (7), respectively, and
                            (iii) by inserting after paragraph (3), as 
                        so redesignated, the following new paragraph:
            ``(4) Declining status.--A multiemployer plan is in 
        declining status for a plan year if--
                    ``(A) as determined by the plan actuary under 
                paragraph (5), as of the beginning of the plan year the 
                plan is projected to become insolvent within the plan 
                year or any of the 29 succeeding plan years,
                    ``(B) the plan is otherwise in critical status for 
                the plan year as determined by the plan actuary under 
                paragraph (5), and the plan sponsor determines that, 
                based on reasonable actuarial assumptions and upon 
                exhaustion of all reasonable measures, the plan cannot 
                reasonably be expected to emerge from critical status 
                within the next 30 plan years, or
                    ``(C) the plan has a funded percentage for the plan 
                year which is greater than the projected funded 
                percentage as of the first day of the 15th succeeding 
                plan year, unless the funded percentage for the plan 
                year is 100 percent or greater and the projected funded 
                percentage as of the first day of such 15th succeeding 
                plan year is less than 100 percent.''.
                    (B) Conforming amendments.--
                            (i) Paragraph (1) of section 432(b) of such 
                        Code, as added by subsection (a)(3), is 
                        amended--
                                    (I) by striking ``paragraph (4)'' 
                                each place it appears in subparagraphs 
                                (A) and (B) and inserting ``paragraph 
                                (5)'', and
                                    (II) by striking ``paragraph (6)'' 
                                each place it appears in subparagraphs 
                                (A) and (B) and inserting ``paragraph 
                                (7)''.
                            (ii) Subsection (c) of section 432 of such 
                        Code, as added by subsection (a)(2), is amended 
                        by striking ``(b)(4)'' each place it appears in 
                        paragraphs (1)(A)(i), (1)(A)(ii), (1)(A)(iii), 
                        (2)(A), and (2)(B) and inserting ``(b)(5)''.
                            (iii) Section 432(b)(5) of such Code, as 
                        further redesignated by subparagraph (A) and as 
                        amended by section 321 and subsection (a), is 
                        further amended--
                                    (I) by striking ``paragraph (5)'' 
                                in subparagraph (B)(iv) thereof and 
                                inserting ``paragraph (6)'',
                                    (II) by striking ``paragraph (5)'' 
                                each place it appears in subparagraphs 
                                (D)(i) and (D)(vi) thereof and 
                                inserting ``paragraph (6)'', and
                                    (III) by striking ``paragraph (6)'' 
                                in subparagraph (D)(iv) thereof and 
                                inserting ``paragraph (7)''.
                            (iv) Section 432(b)(6) of such Code, as so 
                        further redesignated and amended, is further 
                        amended--
                                    (I) by striking ``paragraph 
                                (4)(B)(iv)'' and inserting ``paragraph 
                                (5)(B)(iv)'',
                                    (II) by striking ``paragraph (4)'' 
                                in subparagraph (A) thereof and 
                                inserting ``paragraph (5)'', and
                                    (III) by striking ``paragraph 
                                (4)(A)'' in subparagraph (A) thereof 
                                and inserting ``paragraph (5)(A)''.
                            (v) Section 432(b)(7)(A) of such Code, as 
                        so further redesignated and amended, is further 
                        amended--
                                    (I) by striking ``paragraph 
                                (4)(A)'' and inserting ``paragraph 
                                (5)(A)'', and
                                    (II) by striking ``either paragraph 
                                (2)(A) or paragraph (2)(B)'' and 
                                inserting ``any subparagraph of 
                                paragraph (2)''.
                            (vi) Section 432(b)(7)(B) of such Code, as 
                        so further redesignated, is amended by striking 
                        ``critical or endangered'' and inserting 
                        ``endangered, critical, or declining''.
                            (vii) Paragraphs (1)(A), (4)(A)(ii), 
                        (4)(C)(i), (4)(C)(ii), (4)(D), and (8) of 
                        subsection (d), and subsections (f)(1)(A), 
                        (f)(4)(B)(i), (f)(4)(B)(ii)(I), (f)(5), and 
                        (g)(3) of section 432 of such Code, as 
                        redesignated and amended by subsection (a), are 
                        each further amended by striking ``subsection 
                        (b)(4)(A)'' and inserting ``subsection 
                        (b)(5)(A)''.
                            (viii) Section 432(d)(3)(A)(i)(I) of such 
                        Code, as so redesignated and amended, is 
                        further amended by striking ``subsection 
                        (b)(4)'' and inserting ``subsection (b)(5)''.
                            (ix) Subsections (f)(8)(A)(ii) and 
                        (g)(2)(A) of section 432 of such Code, as so 
                        redesignated and amended, are each further 
                        amended by striking ``subsection (b)(4)(D)'' 
                        and inserting ``subsection (b)(5)(D)''.
                            (x) Section 432(f)(9)(J) of such Code, as 
                        so redesignated and amended, is further amended 
                        by striking ``subsection (b)(4)'' and inserting 
                        ``subsection (b)(5)''.
            (3) Solvency plan.--
                    (A) In general.--Paragraph (4) (as redesignated by 
                subsection (a)(1) and amended by paragraph (1)) of 
                section 432(a) of such Code is amended--
                            (i) by redesignating subparagraph (B) as 
                        subparagraph (D), and
                            (ii) by striking subparagraph (A) and 
                        inserting before subparagraph (D) (as so 
                        redesignated) the following new subparagraphs:
                    ``(A) the plan sponsor shall adopt and implement a 
                solvency plan in accordance with the requirements of 
                subsection (h),
                    ``(B) any rehabilitation plan in place as of the 
                date the plan enters declining status shall continue to 
                apply throughout the solvency plan adoption period,
                    ``(C) the requirements of subsection (i) and 
                paragraphs (6) and (7) of subsection (f) shall apply 
                during the solvency plan adoption period and the 
                solvency attainment period, and''.
                    (B) Adoption of plan.--Section 432 of such Code, as 
                amended by this section, is further amended--
                            (i) by redesignating subsection (l), as 
                        added by title V of this Act, as subsection 
                        (n), and by further redesignating subsections 
                        (h), (i), (j), and (k), as redesignated by 
                        subsection (a)(2), as subsections (j), (k), 
                        (l), and (m), respectively, and
                            (ii) by inserting after subsection (g), as 
                        redesignated by subsection (a)(2), the 
                        following new subsections:
    ``(h) Solvency Plan Must Be Adopted for Multiemployer Plans in 
Declining Status.--
            ``(1) In general.--In any case in which a multiemployer 
        plan is in declining status for a plan year, the plan sponsor, 
        in accordance with this subsection--
                    ``(A) shall adopt a solvency plan not later than 
                240 days following the required date for the actuarial 
                certification of declining status under subsection 
                (b)(5)(A), and
                    ``(B) within 30 days after the adoption of the 
                solvency plan shall provide to the bargaining parties 1 
                or more schedules showing revised benefit structures, 
                revised contribution structures, or both, which, if 
                adopted, may reasonably be expected to enable the 
                multiemployer plan to meet the requirements of 
                paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                current accrual rate) based on the 
                                contribution rate in effect as of the 
                                later of the first day of the plan year 
                                in which the plan enters declining 
                                status or the date of a partition under 
                                section 4233A of the Employee 
                                Retirement Income Security Act of 1974, 
                                and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.
        No schedule provided to or adopted by the bargaining parties 
        shall provide for a monthly benefit accrual rate in excess of 
        the rate described in subparagraph (B)(i)(II).
            ``(2) Exception for years after process begins.--Paragraph 
        (1) shall not apply to a plan year if such year is in a 
        solvency plan adoption period or solvency attainment period by 
        reason of the plan being in declining status for a preceding 
        plan year, except that the next update of the solvency plan 
        shall fulfill the requirement of paragraph (1)(B)(i). For 
        purposes of this section, such preceding plan year shall be the 
        initial determination year with respect to the solvency plan to 
        which it relates.
            ``(3) Solvency plan.--For purposes of this section, a 
        solvency plan is a plan which consists of the actions, 
        including options or a range of options to be proposed to the 
        bargaining parties, formulated, based on reasonably anticipated 
        experience and reasonable actuarial assumptions, to enable the 
        plan to delay or avoid the projected insolvency.
            ``(4) Solvency attainment period.--For purposes of this 
        section--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the solvency attainment period for 
                any solvency plan adopted pursuant to this subsection 
                is the period--
                            ``(i) beginning on the first day of the 
                        first plan year of the multiemployer plan 
                        beginning after the earlier of--
                                    ``(I) the second anniversary of the 
                                date of the adoption of the solvency 
                                plan, or
                                    ``(II) the expiration of the 
                                collective bargaining agreements in 
                                effect on the due date for the 
                                actuarial certification of declining 
                                status for the initial determination 
                                year under subsection (b)(5)(A) and 
                                covering, as of such due date, at least 
                                75 percent of the active participants 
                                in such plan, and
                            ``(ii) ending on the date the plan either 
                        emerges from declining status or becomes 
                        insolvent.
                    ``(B) Coordination with changes in status.--
                            ``(i) Plans no longer in declining 
                        status.--If the plan's actuary certifies in 
                        accordance with subparagraph (C) for a plan 
                        year in any solvency plan adoption period or 
                        solvency attainment period that the plan is no 
                        longer in declining status, the solvency plan 
                        adoption period or solvency attainment period, 
                        whichever is applicable, shall end as of the 
                        date of such certification.
                            ``(ii) Plans in critical or endangered 
                        status.--If the plan's actuary certifies under 
                        subsection (b)(5)(A) for the plan year 
                        described in clause (i) that the plan is in 
                        critical or endangered rather than declining 
                        status, the provisions of subsections (d) and 
                        (e), or subsections (f) and (g), whichever are 
                        applicable, shall be applied as if such plan 
                        year were an initial determination year, except 
                        that the plan may not be amended in a manner 
                        inconsistent with the solvency plan in effect 
                        for the preceding plan year until a new funding 
                        improvement plan or rehabilitation plan, 
                        whichever is applicable, is adopted.
                    ``(C) Emergence.--A plan in declining status shall 
                remain in such status until a plan year for which the 
                plan actuary certifies, in accordance with subsection 
                (b)(5)(A), that the plan is not described in one or 
                more of the subparagraphs in subsection (b)(4) as of 
                the beginning of the plan year.
            ``(5) Updates to solvency plans and schedules.--
                    ``(A) Solvency plan.--The plan sponsor shall 
                annually update the solvency plan and shall file the 
                update with the plan's annual report under section 104 
                of the Employee Retirement Income Security Act of 1974.
                    ``(B) Schedules.--The plan sponsor shall annually 
                update any schedule of contribution rates provided 
                under this subsection to reflect the experience of the 
                plan.
                    ``(C) Duration of schedule.--A schedule of 
                contribution rates provided by the plan sponsor and 
                relied upon by bargaining parties in negotiating a 
                collective bargaining agreement shall remain in effect 
                for the duration of that collective bargaining 
                agreement.
            ``(6) Imposition of schedule where failure to adopt 
        solvency plan.--
                    ``(A) Initial contribution schedule.--If--
                            ``(i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan that was in effect at the 
                        time the plan entered declining status expires, 
                        and
                            ``(ii) after receiving one or more 
                        schedules from the plan sponsor under paragraph 
                        (1)(B), the bargaining parties with respect to 
                        such agreement fail to adopt a contribution 
                        schedule with terms consistent with the 
                        solvency plan and a schedule from the plan 
                        sponsor,
                the plan sponsor shall implement the schedule described 
                in paragraph (1)(B)(i) beginning on the date specified 
                in subparagraph (C).
                    ``(B) Subsequent contribution schedule.--If--
                            ``(i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan in accordance with a 
                        schedule provided by the plan sponsor pursuant 
                        to a solvency plan (or imposed under 
                        subparagraph (A)) expires while the plan is 
                        still in declining status, and
                            ``(ii) after receiving one or more updated 
                        schedules from the plan sponsor under paragraph 
                        (5)(B), the bargaining parties with respect to 
                        such agreement fail to adopt a contribution 
                        schedule with terms consistent with the updated 
                        solvency plan and a schedule from the plan 
                        sponsor,
                then the contribution schedule applicable under the 
                expired collective bargaining agreement, as updated and 
                in effect on the date the collective bargaining 
                agreement expires, shall be implemented by the plan 
                sponsor beginning on the date specified in subparagraph 
                (C).
                    ``(C) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) or (B) expires.
            ``(7) Solvency plan adoption period.--For purposes of this 
        section, the term `solvency plan adoption period' means the 
        period beginning on the date of the certification under 
        subsection (b)(5)(A) for the initial determination year and 
        ending on the day before the first day of the solvency 
        attainment period.
    ``(i) Rules for Operation of Plan During Adoption and Attainment 
Periods.--
            ``(1) Compliance with solvency plan.--
                    ``(A) In general.--A plan may not be amended after 
                the date of the adoption of a solvency plan under 
                subsection (h) so as to be inconsistent with the 
                solvency plan.
                    ``(B) Special rules for benefit increases.--A plan 
                may not be amended after the date of the adoption of a 
                solvency plan under subsection (h) so as to increase 
                benefits, including future benefit accruals, unless the 
                increase is required by law or is a de minimis change.
                    ``(C) Special rules for increases in compensation 
                or contribution rate.--Any increase in employee 
                compensation or contribution rates which takes effect 
                after the first day of the plan year in which the plan 
                enters declining status shall not give rise to an 
                increase in benefits or future benefit accruals under 
                the plan.
            ``(2) Restriction on lump sums and similar benefits.--
                    ``(A) In general.--Effective on the date the notice 
                of certification of the plan's declining status for the 
                initial determination year under subsection (b)(5)(D) 
                is sent, and notwithstanding section 411(d)(6), the 
                plan shall not pay--
                            ``(i) any payment, in excess of the monthly 
                        amount paid under a single life annuity (plus 
                        any social security supplements described in 
                        the last sentence of section 411(a)(9)), to a 
                        participant or beneficiary whose annuity 
                        starting date (as defined in section 417(f)(2)) 
                        occurs after the date such notice is sent,
                            ``(ii) any payment for the purchase of an 
                        irrevocable commitment from an insurer to pay 
                        benefits, or
                            ``(iii) any other payment specified by the 
                        Secretary by regulations,
                unless it is a de minimis amount.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to a benefit which under section 411(a)(11) may be 
                immediately distributed without the consent of the 
                participant or to any makeup payment in the case of a 
                retroactive annuity starting date or any similar 
                payment of benefits owed with respect to a prior 
                period.
            ``(3) Special rules for plan adoption period.--During the 
        period beginning on the date of the certification under 
        subsection (b)(5)(A) for the initial determination year and 
        ending on the date of the adoption of a solvency plan--
                    ``(A) the plan sponsor may not accept a collective 
                bargaining agreement or participation agreement with 
                respect to the multiemployer plan that provides for--
                            ``(i) a reduction in the level of 
                        contributions for any participants,
                            ``(ii) a suspension of contributions with 
                        respect to any period of service, or
                            ``(iii) any new direct or indirect 
                        exclusion of younger or newly hired employees 
                        from plan participation,
                unless the plan sponsor reasonably determines that the 
                acceptance of such an agreement is in the best 
                interests of participants and beneficiaries and that 
                rejection of such agreement would adversely affect the 
                plan, and
                    ``(B) no amendment of the plan which increases the 
                liabilities of the plan by reason of any increase in 
                benefits, any change in the accrual of benefits, or any 
                change in the rate at which benefits become 
                nonforfeitable under the plan may be adopted unless the 
                amendment is required as a condition of qualification 
                under part I of subchapter D of chapter 1 or to comply 
                with other applicable law.''.
                    (C) Suspension of benefits.--Section 432 of such 
                Code, as amended by this section, is further amended--
                            (i) by redesignating paragraph (9) of 
                        subsection (f) (as redesignated by subsection 
                        (a)(2)) as paragraph (8) of subsection (h) (as 
                        added by subparagraph (B)), and
                            (ii) by moving such paragraph to the 
                        position immediately after paragraph (7) of 
                        such subsection (h).
            (4) Conforming amendments.--
                    (A) Subsection (a)(4)(D) of section 432 of such 
                Code, as redesignated and amended by the preceding 
                provisions of this section, is further amended by 
                striking ``subsection (f)(9)'' and inserting 
                ``subsection (h)(8)''.
                    (B) Paragraph (5) of section 432(b) of such Code, 
                as so redesignated and as amended by section 321 and 
                the preceding provisions of this section, is further 
                amended--
                            (i) by striking ``critical'' in 
                        subparagraph (A)(i)(I) and inserting ``critical 
                        or declining'',
                            (ii) by striking ``funding improvement or 
                        rehabilitation period'' in subparagraph 
                        (A)(i)(II) and inserting ``funding improvement, 
                        rehabilitation, or solvency attainment 
                        period'',
                            (iii) by striking ``funding improvement or 
                        rehabilitation plan'' in subparagraph 
                        (A)(i)(II) and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'',
                            (iv) by striking ``endangered or critical'' 
                        in subparagraph (A)(i)(V)(bb) and inserting 
                        ``endangered, critical, or declining'',
                            (v) by striking ``funding improvement plan 
                        or rehabilitation'' in subparagraph (A)(iv) and 
                        inserting ``funding improvement, 
                        rehabilitation, or solvency'',
                            (vi) by striking ``critical'' each place it 
                        appears in subparagraph (A)(vi) and inserting 
                        ``critical or declining'',
                            (vii) by striking ``rehabilitation period'' 
                        in subparagraph (A)(vi) and inserting 
                        ``rehabilitation or solvency attainment 
                        period'',
                            (viii) by striking ``as described in 
                        subsection (f)(9)'' in subparagraph (B)(v),
                            (ix) by inserting ``if the plan is already 
                        in a rehabilitation period, and'' before ``if 
                        reasonable'' in subparagraph (B)(v)(I),
                            (x) by striking ``subsection (f)(9)'' in 
                        subparagraph (B)(v)(II) and inserting 
                        ``subsection (h)(8)'',
                            (xi) by striking ``endangered or critical'' 
                        both places it appears in subparagraph (D)(i) 
                        and inserting ``endangered, critical, or 
                        declining'',
                            (xii) by striking ``endangered or 
                        critical'' in the heading of subparagraph 
                        (D)(ii) and inserting ``endangered, critical, 
                        or declining'',
                            (xiii) by striking ``endangered or 
                        critical'' in subparagraph (D)(ii) and 
                        inserting ``endangered, critical, or 
                        declining'',
                            (xiv) by striking ``funding improvement or 
                        rehabilitation plan'' both places it appears in 
                        subclauses (I) and (II) of subparagraph (D)(ii) 
                        and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'', and
                            (xv) by adding at the end of subparagraph 
                        (D) the following new clause:
                            ``(vii) Notice of projection to be in 
                        declining status in a future plan year.--In any 
                        case in which it is certified under 
                        subparagraph (A)(i) that a multiemployer plan 
                        will be in declining status for any of 5 
                        succeeding plan years (but not for the current 
                        plan year), the plan sponsor shall, not later 
                        than 30 days after the date of the 
                        certification, provide notification of the 
                        projected declining status to the Pension 
                        Benefit Guaranty Corporation.''.
                    (C) Subparagraph (J) of section 432(h)(8) of such 
                Code, as so redesignated and amended, is further 
                amended--
                            (i) by striking ``critical'' in the heading 
                        and inserting ``declining'', and
                            (ii) by striking ``shall not emerge from 
                        critical status under paragraph (4)(B),'' and 
                        inserting ``shall not emerge from declining 
                        status''.
                    (D) Subsection (j) of section 432 of such Code, as 
                so redesignated and amended, is further amended--
                            (i) by striking ``(f)(8) or (g)'' in 
                        paragraph (1) and inserting ``(f)(8), (g), or 
                        (i)'',
                            (ii) by striking ``subsection (f)(9)'' in 
                        paragraph (1) and inserting ``subsection 
                        (h)(8)'',
                            (iii) by striking ``funding improvement or 
                        rehabilitation plan'' in the heading of 
                        paragraph (3) and inserting ``funding 
                        improvement, rehabilitation, or solvency'',
                            (iv) by striking ``funding improvement plan 
                        or rehabilitation plan'' both places it appears 
                        in subparagraphs (A) and (B) of paragraph (3) 
                        and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'',
                            (v) by striking ``endangered or critical'' 
                        in the heading of paragraph (4), as amended by 
                        subsection (a), and inserting ``endangered, 
                        critical, or declining'',
                            (vi) by striking ``endangered or critical'' 
                        each place it appears in paragraph (4), as so 
                        amended, and inserting ``endangered, critical, 
                        or declining'', and
                            (vii) by striking ``critical or 
                        endangered'' in paragraph (4) and inserting 
                        ``endangered, critical, or declining''.
                    (E) Subsection (k) of section 432 of such Code, as 
                so redesignated and amended, is further amended--
                            (i) by striking ``or a rehabilitation plan 
                        under subsection (f)'' and inserting ``, a 
                        rehabilitation plan under subsection (f), or a 
                        solvency plan under subsection (h)'',
                            (ii) by striking ``endangered status or a 
                        plan in critical status'' and inserting 
                        ``endangered, critical, or declining status'',
                            (iii) by striking ``has not agreed on a 
                        funding improvement plan or rehabilitation 
                        plan'' and inserting ``has not agreed on a 
                        funding improvement, rehabilitation, or 
                        solvency plan (whichever is applicable)'', and
                            (iv) by striking ``adoption of a funding 
                        improvement plan or rehabilitation plan'' and 
                        inserting ``adoption of a funding improvement, 
                        rehabilitation, or solvency plan''.
                    (F) Subsection (l) of section 432 of such Code, as 
                so redesignated and amended, is further amended--
                            (i) by striking ``endangered status or in 
                        critical status'' in paragraph (1) and 
                        inserting ``endangered, critical, or declining 
                        status'',
                            (ii) by striking ``endangered or critical'' 
                        in paragraph (1) and inserting ``endangered, 
                        critical, or declining'', and
                            (iii) by striking ``(d) and (f)'' in 
                        paragraph (2) and inserting ``(d), (f), and 
                        (h)''.
                    (G) Section 418E of such Code, as amended by 
                section 112 and this section, is further amended--
                            (i) by striking ``432(b)(3)'' each place it 
                        appears in subsections (c)(1), (c)(2), (d)(1), 
                        and (d)(2) and inserting ``432(b)(3), or a plan 
                        in declining status, as described in section 
                        432(b)(4)'', and
                            (ii) by striking ``432(f)(9)'' in 
                        subsection (g) and inserting ``432(h)(8)''.
                    (H) Section 4971(g) of such Code, as amended by 
                this section, is further amended--
                            (i) by striking ``Endangered or Critical'' 
                        in the heading and inserting ``Endangered, 
                        Critical, or Declining'',
                            (ii) by striking ``critical status'' in 
                        paragraph (1)(A) and inserting ``critical or 
                        declining status'',
                            (iii) by striking ``or rehabilitation 
                        plan'' in the heading of paragraph (2) and 
                        inserting ``, rehabilitation, or solvency 
                        plan'',
                            (iv) by striking ``plan or rehabilitation 
                        plan'' in paragraph (2)(A) and inserting ``, 
                        rehabilitation, or solvency plan'',
                            (v) by striking ``rehabilitation plan'' in 
                        paragraph (2)(C) and inserting ``funding 
                        improvement, rehabilitation, or solvency 
                        plan'',
                            (vi) by striking paragraph (3) and 
                        redesignating paragraphs (4), (5), and (6) as 
                        paragraphs (3), (4), and (5), respectively,
                            (vii) by striking ``rehabilitation plan'' 
                        in the heading of paragraph (3), as so 
                        redesignated, and inserting ``rehabilitation or 
                        solvency plan'',
                            (viii) by striking ``critical status'' in 
                        paragraph (3)(A), as so redesignated, and 
                        inserting ``critical or declining status'',
                            (ix) by striking ``rehabilitation plan'' in 
                        paragraph (3)(A), as so redesignated, and 
                        inserting ``rehabilitation or solvency plan'',
                            (x) by striking ``described in section 
                        432(f)(1)(A) and ending on the day on which the 
                        rehabilitation plan is adopted'' in paragraph 
                        (3)(B)(ii), as so redesignated, and inserting 
                        ``described in section 432(f)(1)(A) or 
                        432(h)(1)(A), whichever is applicable, and 
                        ending on the day on which the rehabilitation 
                        plan or solvency plan is adopted'',
                            (xi) by striking ``432(k)(9)'' in paragraph 
                        (3)(C)(ii), as so redesignated, and inserting 
                        ``432(n)(9)'', and
                            (xii) by striking ``or (3)'' in paragraph 
                        (4), as so redesignated.
    (e) Adjustment of Benefits.--
            (1) In general.--Section 432 of the Internal Revenue Code 
        of 1986, as amended by this section, is further amended--
                    (A) by further redesignating subsections (m) and 
                (n), as redesignated by subsection (d), as subsections 
                (n) and (o), respectively,
                    (B) by redesignating paragraph (8) of subsection 
                (f), as redesignated by subsection (a)(2), as 
                subsection (m), and
                    (C) by moving such subsection to the position 
                immediately after subsection (l).
            (2) Clerical and conforming amendments.--
                    (A) The heading of subsection (m) of section 432 of 
                such Code, as redesignated by paragraph (1), is amended 
                to read as follows:
    ``(m) Adjustment of Benefits.--''.
                    (B) The following provisions of such subsection (m) 
                are amended as follows:
                            (i) Subparagraphs (A), (B), and (C) are 
                        redesignated as paragraphs (1), (2), and (4), 
                        respectively, and moved 2 ems to the left.
                            (ii) Clauses (i), (ii), (iii), and (iv) of 
                        paragraph (1) (as so redesignated) are 
                        redesignated as subparagraphs (A), (B), (C), 
                        and (D), respectively, and moved 2 ems to the 
                        left.
                            (iii) Subclauses (I), (II), and (III) of 
                        paragraph (1)(D) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (iv) Clauses (i), (ii), and (iii) of 
                        paragraph (4) (as so redesignated) are 
                        redesignated as subparagraphs (A), (B), and 
                        (C), respectively, and moved 2 ems to the left, 
                        and the flush sentence at the end of 
                        subparagraph (C) (as so redesignated) is moved 
                        2 ems to the left.
                            (v) Subclauses (I), (II), and (III) of 
                        paragraph (4)(A) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (vi) Subclauses (I) and (II) of paragraph 
                        (4)(B) (as so redesignated) are redesignated as 
                        clauses (i) and (ii), respectively, and moved 2 
                        ems to the left.
                            (vii) Subclauses (I), (II), and (III) of 
                        paragraph (4)(C) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (viii) Paragraph (1)(A), as so 
                        redesignated, is amended by striking 
                        ``subparagraph (C)'' and inserting ``paragraph 
                        (4)''.
                            (ix) Paragraph (1)(B), as so redesignated, 
                        is amended by striking ``clause (iv)(III)'' and 
                        inserting ``subparagraph (D)(iii)''.
                            (x) Paragraph (1)(D), as so redesignated, 
                        is amended by striking ``this paragraph'' and 
                        inserting ``this subsection''.
                            (xi) Paragraph (2), as so redesignated, is 
                        amended--
                                    (I) by striking ``subparagraph 
                                (A)(iv)(III)'' and inserting 
                                ``paragraph (1)(D)(iii)'', and
                                    (II) by striking ``this paragraph'' 
                                and inserting ``this subsection''.
                            (xii) Paragraph (4)(A), as so redesignated, 
                        is amended by striking ``subparagraph (A)'' and 
                        inserting ``paragraph (1)''.
                            (xiii) Paragraphs (4)(B) and (4)(C), as so 
                        redesignated, are each amended by striking 
                        ``clause (i)'' each place it appears and 
                        inserting ``subparagraph (A)''.
                            (xiv) The last sentence of paragraph 
                        (4)(C), as so redesignated, is amended--
                                    (I) by striking ``subclause (I)'' 
                                and inserting ``clause (i)'', and
                                    (II) by striking ``this 
                                subparagraph'' and inserting ``this 
                                paragraph''.
            (3) Application to all plans in endangered, critical, or 
        declining status.--
                    (A) In general.--Subparagraph (A) of section 
                432(m)(1) of such Code, as redesignated and amended by 
                this section, is further amended--
                            (i) by striking ``the plan sponsor shall'' 
                        and inserting ``the plan sponsor of a 
                        multiemployer plan in endangered, critical, or 
                        declining status may'', and
                            (ii) by striking ``paragraph (1)(B)(i)'' 
                        and inserting ``subsection (d)(1)(B), 
                        (f)(1)(B), or (h)(1)(B), whichever is 
                        applicable''.
                    (B) Conforming amendment.--Subparagraph (B) of 
                section 432(m)(1) of such Code, as redesignated and 
                amended by this section, is further amended by striking 
                ``critical'' both places it appears and inserting 
                ``endangered, critical, or declining''.
            (4) Additional adjustable benefits.--
                    (A) In general.--Subparagraph (D) of section 
                432(m)(1) of such Code, as redesignated by this 
                section, is amended--
                            (i) by inserting ``, including early 
                        reduction factors which are not provided on an 
                        actuarially equivalent basis,'' after ``(i))'' 
                        in clause (ii), as so redesignated,
                            (ii) by striking ``and'' at the end of 
                        clause (ii) (as so redesignated),
                            (iii) by striking ``that would not be 
                        eligible'' and all that follows through the 
                        period in clause (iii) (as so redesignated) and 
                        inserting ``which were adopted (or, if later, 
                        took effect) less than 120 months before the 
                        first day of the first plan year in which the 
                        plan was in endangered, critical, or declining 
                        status,'', and
                            (iv) by adding at the end the following new 
                        clauses:
                            ``(iv) any one-time bonus payment or 
                        `thirteenth check' provision, and
                            ``(v) benefits granted for periods of 
                        service prior to participation in the plan.''.
                    (B) Conforming amendments.--
                            (i) Subparagraph (B) of section 432(m)(1) 
                        of such Code, as redesignated and amended by 
                        this section, is further amended by striking 
                        ``subparagraph (D)(iii)'' and inserting 
                        ``clause (iii), (iv), or (v) of subparagraph 
                        (D)''.
                            (ii) Paragraph (2) of section 432(m) of 
                        such Code, as amended by paragraph (2)(B), is 
                        further amended by striking ``paragraph 
                        (1)(D)(iii)'' and inserting ``clause (iii), 
                        (iv), or (v) of paragraph (1)(D)''.
            (5) Rules relating to suspension of benefits upon return to 
        work.--Subsection (m) of section 432 of such Code, as 
        redesignated and amended by this section, is further amended by 
        inserting after paragraph (2) the following new paragraph:
            ``(3) Rules relating to suspension of benefits upon return 
        to work.--The plan sponsor of a multiemployer plan in 
        endangered, critical, or declining status may amend rules 
        regarding the suspension of a participant's benefits upon a 
        return to work after commencement of benefits, or the 
        commencement of benefits after normal retirement age (including 
        in the case of continued employment after normal retirement 
        age). Any such changes shall apply only to future payments of 
        benefits.''.
            (6) Additional conforming amendments.--
                    (A) Clause (iii) of section 432(b)(5)(D) of such 
                Code, as redesignated and amended by this section, is 
                further amended--
                            (i) by striking ``critical'' in the heading 
                        and inserting ``endangered, critical, or 
                        declining'',
                            (ii) by striking ``critical status'' both 
                        places it appears and inserting ``endangered, 
                        critical, or declining status'', and
                            (iii) by striking ``subsection (f)(8)'' in 
                        subclause (I) and inserting ``subsection 
                        (m)(1)(D)''.
                    (B) Subsection (j) of section 432 of such Code, as 
                amended by subsection (d), is further amended by 
                striking ``(f)(8), (g), or (i)'' and inserting ``(e), 
                (g), (i), or (m)''.
    (f) Elections To Be in Critical or Endangered Status.--
            (1) In general.--Paragraph (6) of section 432(b) of the 
        Internal Revenue Code of 1986, as redesignated and amended by 
        this section, is further amended--
                    (A) by striking ``is not in critical status'' in 
                subparagraph (A) and inserting ``is not in critical or 
                declining status'',
                    (B) by striking ``but that is projected'' in 
                subparagraph (A) and inserting ``but--
                            ``(i) that is projected'',
                    (C) by striking ``5 plan years may, not later 
                than'' in subparagraph (A) and inserting ``5 plan 
                years, or
                            ``(ii) that is in endangered status and is 
                        not reasonably projected to be able to emerge 
                        from endangered status within the funding 
                        improvement period under the funding 
                        improvement plan in effect,
                may, not later than'', and
                    (D) by striking ``under paragraph (3)'' in 
                subparagraph (B) and inserting ``under paragraph (3) or 
                for endangered status under paragraph (2)''.
            (2) Election to be in endangered status.--Subsection (b) of 
        section 432 of such Code, as so redesignated and amended, is 
        further amended by adding at the end the following new 
        paragraph:
            ``(8) Election to be in endangered status.--Notwithstanding 
        paragraph (2)--
                    ``(A) the plan sponsor of a multiemployer plan that 
                is not in endangered, critical, or declining status for 
                a plan year but that is projected by the plan actuary, 
                pursuant to the determination under paragraph (5), to 
                be in endangered status in any of the 5 succeeding plan 
                years, may, not later than 30 days after the date of 
                the certification under paragraph (5)(A), elect to be 
                in endangered status effective for the current plan 
                year,
                    ``(B) the plan year in which the plan sponsor 
                elects to be in endangered status under subparagraph 
                (A) shall be treated for purposes of this section as 
                the first year in which the plan is in endangered 
                status, regardless of the date on which the plan first 
                satisfies the criteria for endangered status under 
                paragraph (2), and
                    ``(C) a plan that is in endangered status under 
                this paragraph shall not emerge from endangered status 
                unless the plan's actuary certifies under paragraph 
                (5)(A) that the plan is no longer in endangered status 
                and is not in critical or declining status.''.
    (g) Amendments Relating to Funding Improvement Plan.--
            (1) In general.--Paragraph (1) of section 432(d) of the 
        Internal Revenue Code of 1986, as redesignated and amended by 
        this section, is further amended--
                    (A) by striking the last sentence, and
                    (B) in subparagraph (B), by striking ``funding 
                improvement plan--'' and all that follows and inserting 
                ``funding improvement plan, shall provide to the 
                bargaining parties 1 or more schedules showing revised 
                benefit structures, revised contribution structures, or 
                both, which, if adopted, may reasonably be expected to 
                enable the multiemployer plan to meet the requirements 
                of paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                accrual rate as of the date of the 
                                enactment of the Chris Allen 
                                Multiemployer Pension Recapitalization 
                                and Reform Act of 2021) based on the 
                                contribution rate in effect as of the 
                                first day of the plan year in which the 
                                plan enters endangered status, and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.''.
            (2) Funding improvement plan.--Paragraph (3) of section 
        432(d) of such Code, as so redesignated and amended, is further 
        amended--
                    (A) by striking ``For purposes of this section--'' 
                and all that follows through ``which consists of'' in 
                subparagraph (A) and inserting ``For purposes of this 
                section, a funding improvement plan is a plan which 
                consists of'', and
                    (B) by striking ``formulated to provide'' and all 
                that follows and inserting ``formulated, based on 
                reasonably anticipated experience and reasonable 
                actuarial assumptions, to--
                    ``(A) enable the plan to no longer be in endangered 
                status (as certified by the plan actuary) by the end of 
                the funding improvement period, and
                    ``(B) avoid any accumulated funding deficiencies 
                during the funding improvement period (taking into 
                account any extension of amortization periods under 
                section 431(d)).''.
            (3) Funding improvement period.--Paragraph (4) of section 
        432(d) of such Code, as so redesignated and amended, is further 
        amended by striking subparagraph (B) and inserting after 
        subparagraph (A) the following new subparagraph:
                    ``(B) New period based on adverse experience.--
                            ``(i) In general.--If the plan's actuary 
                        determines necessary based on adverse plan 
                        experience, the plan sponsor may provide for a 
                        new 10-year period as of the first day of any 
                        plan year in the original funding improvement 
                        period, but only if the plan is still projected 
                        to meet the requirements of the funding 
                        improvement plan and emerge from endangered 
                        status at the end of the new funding 
                        improvement period.
                            ``(ii) Limitation.--A plan sponsor may 
                        provide a new 10-year period under clause (i) 
                        not more than 1 time in any 20-consecutive-year 
                        period, unless the plan sponsor submits to the 
                        Secretary an application for an additional new 
                        period. Such application shall include a 
                        certification that the plan is projected to 
                        emerge from endangered status in the proposed 
                        new 10-year period and a description of key 
                        assumptions, to be specified in regulations 
                        promulgated by the Secretary in consultation 
                        with the Pension Benefit Guaranty 
                        Corporation.''.
            (4) Conforming amendments.--
                    (A) Subparagraph (C) of section 432(d)(4) of such 
                Code, as so redesignated and amended, is further 
                amended--
                            (i) by striking ``critical status'' both 
                        places it appears in clauses (i) and (ii) and 
                        inserting ``critical or declining status'',
                            (ii) by striking ``rehabilitation period'' 
                        in clause (ii) and inserting ``rehabilitation 
                        or solvency attainment period'', and
                            (iii) by striking ``critical status'' in 
                        the heading of clause (ii) and inserting 
                        ``critical or declining status''.
                    (B) Subsection (d) of section 432 of such Code, as 
                so redesignated and amended, is further amended by 
                striking paragraph (5) and by redesignating paragraphs 
                (6), (7), and (8) as paragraphs (5), (6), and (7), 
                respectively.
                    (C) Paragraph (6) of section 432(d) of such Code, 
                as so redesignated, is amended--
                            (i) by striking ``(1)(B)(i)(I)'' in 
                        subparagraph (A) and inserting ``(1)(B)(i)'', 
                        and
                            (ii) by striking ``paragraph (6)(B)'' in 
                        subparagraph (B)(ii) and inserting ``paragraph 
                        (5)(B)''.
                    (D) Paragraph (2) of section 432(d) of such Code, 
                as so redesignated, is amended by inserting ``, except 
                that the next update of the funding improvement plan 
                shall fulfill the requirement of paragraph (1)(B)(i)'' 
                after ``for a preceding plan year''.
    (h) Amendments Relating to Rehabilitation Plan.--
            (1) In general.--Paragraph (1) of section 432(f) of the 
        Internal Revenue Code of 1986, as redesignated and amended by 
        this section, is further amended--
                    (A) by striking the last 2 sentences, and
                    (B) in subparagraph (B), by striking 
                ``rehabilitation plan--'' and all that follows and 
                inserting ``rehabilitation plan, shall provide to the 
                bargaining parties 1 or more schedules showing revised 
                benefit structures, revised contribution structures, or 
                both, which, if adopted, may reasonably be expected to 
                enable the multiemployer plan to meet the requirements 
                of paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                accrual rate as of the date of the 
                                enactment of the Chris Allen 
                                Multiemployer Pension Recapitalization 
                                and Reform Act of 2021) based on the 
                                contribution rate in effect as of the 
                                first day of the plan year in which the 
                                plan enters critical status, and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.
                In the case of a plan adopting a rehabilitation plan 
                described in paragraph (3)(A)(ii), no schedule provided 
                to or adopted by the bargaining parties shall provide 
                for a monthly benefit accrual rate in excess of the 
                rate described in subparagraph (B)(i)(II).''.
            (2) Rehabilitation plan.--
                    (A) In general.--Subparagraph (A) of section 
                432(f)(3) of such Code, as so redesignated, is 
                amended--
                            (i) by striking ``and may include'' and all 
                        that follows through ``such actions'' in clause 
                        (i),
                            (ii) by inserting ``, while delaying 
                        insolvency for as long as possible and 
                        maximizing the income of the plan, including 
                        income after insolvency'' before the period in 
                        clause (ii), and
                            (iii) by striking ``(1)(B)(i)'' in the last 
                        sentence and inserting ``(1)(B)''.
                    (B) Conforming amendments.--Clause (i) of section 
                432(f)(3)(C) of such Code, as so redesignated, is 
                amended--
                            (i) by striking ``(1)(B)(i)'' in subclause 
                        (II) and inserting ``(1)(B)'', and
                            (ii) by striking ``the last sentence of 
                        paragraph (1)'' and inserting ``paragraph 
                        (1)(B)(i)''.
            (3) Rehabilitation period.--
                    (A) In general.--Subparagraph (A) of section 
                432(f)(4) of such Code, as so redesignated and amended, 
                is further amended--
                            (i) by striking ``The rehabilitation 
                        period'' and inserting ``Except as otherwise 
                        provided in this subparagraph, the 
                        rehabilitation period'', and
                            (ii) by adding at the end the following: 
                        ``If, upon exhaustion of all reasonable 
                        measures, the plan is not reasonably expected 
                        to emerge from critical status by the end of 
                        such 10-year period, the rehabilitation period 
                        shall be extended to take into account the 
                        projected date of emergence from critical 
                        status (if the rehabilitation plan remained in 
                        effect until such date) or the projected date 
                        of insolvency (if applicable) (unless the plan 
                        enters declining status).''.
                    (B) Emergence from critical status.--Subparagraph 
                (B) of section 432(f)(4) of such Code, as so 
                redesignated and amended, is further amended--
                            (i) by inserting ``and is not in declining 
                        status,'' after the comma in clause (i)(I),
                            (ii) by striking subclause (III) of clause 
                        (i) and inserting the following:
                                    ``(III) the plan's projected funded 
                                percentage as of the first day of the 
                                15th succeeding plan year is at least 
                                100 percent and is projected to 
                                increase after such date.'',
                            (iii) by striking ``that--'' and all that 
                        follows through ``regardless of whether'' in 
                        clause (ii)(I) and inserting ``that the plan 
                        meets the requirements of subclauses (II) and 
                        (III) of clause (i), regardless of whether'', 
                        and
                            (iv) by striking ``unless--'' and all that 
                        follows in clause (ii)(II) and inserting 
                        ``unless, as of such plan year, the plan fails 
                        to meet the requirements of subclause (II) or 
                        (III) of clause (i).''.
            (4) Rules relating to benefit increases during 
        rehabilitation period.--Subparagraph (B) of section 432(g)(1) 
        of such Code, as so redesignated and amended, is further 
        amended by striking ``unless'' and all that follows and 
        inserting ``unless the amendment is required as a condition of 
        qualification under part I of subchapter D of chapter 1 or to 
        comply with other applicable law, or the amendment provides for 
        only a de minimis increase in the liabilities of the plan.''.
            (5) Conforming amendments.--
                    (A) Paragraph (6) of section 432(f) of such Code, 
                as so redesignated, is amended by striking ``the last 
                sentence of paragraph (1)'' and inserting ``paragraph 
                (1)(B)(i)''.
                    (B) Paragraph (2) of section 432(f) of such Code, 
                as so redesignated, is amended by inserting ``, except 
                that the next update of the rehabilitation plan shall 
                fulfill the requirement of paragraph (1)(B)(i)'' after 
                ``for a preceding plan year''.
    (i) Actuarial Assumptions.--
            (1) In general.--Subsection (n) of section 432 of the 
        Internal Revenue Code of 1986, as redesignated by subsections 
        (a), (d), and (e), is amended--
                    (A) by striking ``Method'' in the heading and 
                inserting ``Method and Assumptions'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(11) Actuarial assumptions.--
                    ``(A) In general.--The actuarial assumptions relied 
                upon for purposes of this section by a plan actuary 
                shall be individually reasonable and, in the aggregate, 
                shall be reasonable and (with the exception of 
                assumptions regarding future contributions) represent 
                the actuary's best estimate of future plan experience, 
                within limitations prescribed by the Secretary. A plan 
                actuary shall avoid conservatism or optimism in 
                individual assumptions to the extent that they would 
                result in a set of assumptions that is unreasonable in 
                the aggregate.
                    ``(B) Investment returns.--The investment return 
                assumption for projecting plan assets may differ from 
                the actuarial valuation interest rate. In selecting the 
                investment return assumption for projecting plan 
                assets, the plan actuary shall estimate the expected 
                return of the plan's investments as currently invested 
                and as expected to be invested in the future, 
                consistent with the plan's adopted investment policy, 
                if applicable. It is reasonable for an actuary to 
                expect that the plan's investment decisions will 
                consider risk, expected returns over time, and expected 
                future benefit payments. The investment return 
                assumption shall not exceed the interest rate used to 
                determine past service liability under section 
                431(b)(6).
                    ``(C) Contributions.--
                            ``(i) In general.--The plan actuary shall 
                        develop assumptions for the projection of 
                        future contributions, including assumptions 
                        regarding industry activity among contributing 
                        employers and contribution rates, based on 
                        information provided by the plan sponsor, which 
                        must act reasonably and in good faith. The plan 
                        actuary shall certify the reasonableness of all 
                        assumptions.
                            ``(ii) Projected industry activity.--Any 
                        projection of activity in the industry or 
                        industries covered by the plan, including 
                        future covered employment and contribution 
                        levels, shall be based on information provided 
                        by the plan sponsor acting reasonably and in 
                        good faith.
                            ``(iii) Future contribution base units.--
                                    ``(I) Declining contribution base 
                                units.--If recent experience of the 
                                plan has been declining contribution 
                                base units, the plan actuary may assume 
                                future contribution base units will 
                                continue to decline at the same 
                                annualized trend as over the 5 
                                immediately preceding plan years, 
                                unless the actuary determines that 
                                there have been significant changes 
                                that would make such assumption 
                                unreasonable.
                                    ``(II) Flat or increasing 
                                contribution base units.--If recent 
                                experience of the plan has been 
                                increasing, or neither increasing nor 
                                decreasing, contribution base units, 
                                the plan actuary may assume future 
                                contribution base units will remain 
                                unchanged indefinitely, unless the 
                                actuary determines that there have been 
                                significant changes that would make 
                                such assumption unreasonable.
                            ``(iv) Future contribution rates.--
                                    ``(I) In general.--Projections of 
                                contributions shall be based on the 
                                contribution rates consistent with the 
                                terms of collective bargaining and 
                                participation agreements currently in 
                                effect.
                                    ``(II) Future increases in 
                                accordance with correction plans.--If 
                                reasonable and applicable, the plan 
                                actuary may assume future increases in 
                                contribution rates consistent with the 
                                adopted funding improvement plan, 
                                rehabilitation plan, or solvency plan.
                                    ``(III) Additional factors.--
                                Information provided by the plan 
                                sponsor to the plan actuary in setting 
                                the assumption regarding future 
                                increases in contribution rates shall 
                                take into account the ability of the 
                                participating employers to make 
                                contributions at the scheduled rates 
                                over time, considering relevant factors 
                                such as projected industry activity, 
                                the financial strength of participating 
                                employers, market competition, and the 
                                scheduled contribution rate to the plan 
                                relative to the overall wage package.
                    ``(D) Assumptions for developing schedules.--All 
                schedules under any funding improvement plan, 
                rehabilitation plan, or solvency plan must be developed 
                based on the same set of actuarial assumptions unless 
                it would be unreasonable to do so, taking into account 
                the anticipated impact of the schedules on participant 
                behavior and employer participation.''.
            (2) Additions to form 5500 schedule mb.--Subparagraph (B) 
        of section 432(b)(5) of such Code, as redesignated and amended 
        by this section, is further amended by adding at the end the 
        following new clause:
                            ``(vi) Additional attachments.--The plan 
                        actuary shall attach to the certification 
                        required under subparagraph (A)--
                                    ``(I) documentation supporting the 
                                certification of status under 
                                subparagraph (A), including projections 
                                of the funding standard account, funded 
                                percentage, and solvency of the plan,
                                    ``(II) a clear description of the 
                                key assumptions used in performing the 
                                projections, including investment 
                                returns, contribution base units, and 
                                contribution rates,
                                    ``(III) a 5-year history of 
                                contributions, including contribution 
                                base units, average contribution rates, 
                                and withdrawal liability payments, and 
                                a comparison of such contribution base 
                                units, rates, and payments to 
                                projections made by the plan, and
                                    ``(IV) an alternate projection of 
                                the funding standard account, funded 
                                percentage, and solvency, based on the 
                                following assumptions:
                                            ``(aa) Annual future 
                                        investment returns on plan 
                                        assets equal the actuarial 
                                        interest rate assumption minus 
                                        1 percent.
                                            ``(bb) Future contribution 
                                        base units projected using a 
                                        trend equal to the lesser of--

                                                    ``(AA) the 
                                                annualized trend of 
                                                actual contribution 
                                                base units over the 5 
                                                preceding plan years, 
                                                and

                                                    ``(BB) no change in 
                                                future contribution 
                                                base units.

                                            ``(cc) No increases in 
                                        future contribution rates 
                                        beyond those consistent with 
                                        the collective bargaining 
                                        agreements and participation 
                                        agreements in effect for the 
                                        plan year.
                                            ``(dd) The withdrawal from 
                                        the plan of the employer which 
                                        has contributed the greatest 
                                        total amount of contributions 
                                        over the 5 preceding plan 
                                        years, if such employer has 
                                        contributed at least 10 percent 
                                        of the total contributions to 
                                        the plan over such 5 plan years 
                                        and such employer has a below 
                                        investment grade credit rating 
                                        (but only if obtaining the 
                                        credit rating of such employer 
                                        is not an undue burden).
                                            ``(ee) If such credit 
                                        rating cannot be obtained 
                                        without undue burden, the 
                                        withdrawal of the employer 
                                        which has contributed the 
                                        greatest total amount of 
                                        contributions over the 5 
                                        preceding plan years, if such 
                                        employer has contributed at 
                                        least 10 percent of the total 
                                        contributions to the plan over 
                                        such 5 plan years without 
                                        regard to collection of any 
                                        withdrawal liability.
                                            ``(ff) If no employer has 
                                        contributed at least 10 percent 
                                        of the total contributions to 
                                        the plan over the 5 preceding 
                                        plan years, the withdrawal of 
                                        the employer which contributed 
                                        the greatest total amount of 
                                        contributions for the current 
                                        plan year, without regard to 
                                        collection of any withdrawal 
                                        liability, unless the employer 
                                        contributed less than 1 percent 
                                        of the total contributions to 
                                        the plan for such plan year.
                                            ``(gg) Other assumptions 
                                        consistent with the projection 
                                        based on the actuary's best 
                                        estimate assumptions.''.
            (3) Conforming amendments.--
                    (A) Section 432(b)(5)(B)(i) of such Code, as 
                redesignated by this section, is amended by striking 
                ``assumptions'' and inserting ``assumptions meeting the 
                requirements of subsection (n)(11)''.
                    (B) Section 432(b)(5)(A)(vi) of such Code, as 
                amended by this section and section 321, is further 
                amended by striking ``reasonable actuarial 
                assumptions'' and inserting ``assumptions meeting the 
                requirements of subsection (n)(11)''.
                    (C) Paragraph (3) of section 432(d) of such Code, 
                as amended by subsection (g), is further amended by 
                striking ``reasonable actuarial assumptions'' and 
                inserting ``assumptions meeting the requirements of 
                subsection (n)(11)''.
                    (D) Clause (i) of section 432(f)(3)(A) of such 
                Code, as amended by subsection (h), is further amended 
                by striking ``reasonable actuarial assumptions'' and 
                inserting ``assumptions meeting the requirements of 
                subsection (n)(11)''.
                    (E) Section 432(h)(3) of such Code, as added by 
                subsection (d), is amended by striking ``reasonable 
                actuarial assumptions'' and inserting ``assumptions 
                meeting the requirements of subsection (n)(11)''.
    (j) Conforming Amendments Relating to Legacy Plans.--
            (1) Subsections (a)(3)(F), (b)(1)(B)(i), (b)(1)(H)(iv), and 
        (d)(6)(A) of section 411 of the Internal Revenue Code of 1986, 
        as amended by title V, are each further amended by striking 
        ``432(f)'' each place it appears and inserting ``432(h)(8)''.
            (2) Sections 431(b)(10), 440A(d)(2)(D), and 440A(d)(4) of 
        such Code, as added by title V, are each amended by striking 
        ``endangered or critical'' and inserting ``endangered, 
        critical, or declining''.
            (3) Section 437(b)(1) of such Act, as so added, is amended 
        by striking ``endangered or critical'' both places it appears 
        and inserting ``endangered, critical, or declining''.
            (4) Sections 437(b)(5)(B) and 440A(b)(1)(A) of such Code, 
        as so added, are each amended by striking ``endangered or 
        critical'' and inserting ``endangered, critical, or 
        declining''.
            (5) Sections 437(b)(1), 437(b)(5)(B), 440A(b)(1)(A), and 
        440A(e)(3) of such Code, as so added, are each amended by 
        striking ``432(b)(4)'' and inserting ``432(b)(5)''.
            (6) Sections 438(b)(5) and 440A(d)(2)(A) of such Code, as 
        so added, are each amended by striking ``432(b)(4)(B)'' and 
        inserting ``432(b)(5)(B)''.
            (7) Section 438(b)(1) of such Code, as so added, is amended 
        by striking ``and'' at the end of subparagraph (B), by striking 
        the period at the end of subparagraph (C) and inserting ``, 
        and'', and by adding at the end the following new subparagraph:
                    ``(D) consistent with the principles of 
                subparagraphs (B), (C), and (D) of section 
                432(n)(11).''.
            (8) Section 439(a)(2)(D) of such Code, as so added, is 
        amended by striking ``432(f)(9)(D)(vi)'' and inserting 
        ``432(h)(8)(D)(vi)''.
            (9) Section 439(a)(3) of such Code, as so added, is amended 
        by striking ``432(f)(8)'' and inserting ``432(m)(1)(D)''.
            (10) Section 440A(d)(2)(D) of such Code, as so added and 
        amended, is further amended by striking ``funding improvement 
        or rehabilitation plan'' and inserting ``funding improvement, 
        rehabilitation, or solvency plan''.
    (k) Effective Date.--Except as otherwise provided in subsection 
(a)(7), the amendments made by this section shall apply to plan years 
beginning after December 31, 2021.
    (l) Credit Ratings.--No requirement of section 939 or 939A of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (124 Stat. 
1887; 15 U.S.C. 78o-7 note) shall apply with respect to the amendment 
made by subsection (i)(2).

SEC. 212. AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974.

    (a) Rules Applying to All Multiemployer Plans.--
            (1) In general.--Subsection (a) of section 305 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1085) is amended--
                    (A) by striking ``a multiemployer plan in effect on 
                July 16, 2006--'' and inserting ``any multiemployer 
                plan--'',
                    (B) by redesignating paragraphs (1), (2), and (3) 
                as paragraphs (2), (3), and (4), respectively,
                    (C) by inserting before paragraph (2), as so 
                redesignated, the following new paragraph:
            ``(1) the rules of subsection (c) shall apply,'',
                    (D) by striking ``subsection (c)'' in paragraph 
                (2)(A), as so redesignated, and inserting ``subsection 
                (d)'',
                    (E) by striking ``subsection (d)'' in paragraph 
                (2)(B), as so redesignated, and inserting ``subsection 
                (e)'',
                    (F) by striking ``subsection (e)'' in paragraph 
                (3)(A), as so redesignated, and inserting ``subsection 
                (f)'',
                    (G) by striking ``subsection (f)'' in paragraph 
                (3)(B), as so redesignated, and inserting ``subsection 
                (g)'', and
                    (H) by striking ``subsection (e)(9)'' in paragraph 
                (4)(B), as so redesignated, and inserting ``subsection 
                (f)(9)''.
            (2) Rules of immediate application.--Section 305 of such 
        Act (29 U.S.C. 1085) is amended--
                    (A) by redesignating subsections (c), (d), (e), 
                (f), (g), (h), (i), and (j) as subsections (d), (e), 
                (f), (g), (h), (i), (j), and (k), respectively, and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Rules Applying to All Multiemployer Plans.--
            ``(1) Benefit increases.--
                    ``(A) Increases by plan amendment.--The plan 
                sponsor of any multiemployer plan shall not adopt a 
                plan amendment which increases plan liabilities (as 
                determined as of the date of the adoption of the 
                amendment) due to any increase in benefits, any change 
                in the accrual rate of benefits, or any change in the 
                rate at which benefits become nonforfeitable, unless--
                            ``(i) if the plan is in unrestricted status 
                        as of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that the increase in liabilities will 
                        not cause the plan to no longer be in 
                        unrestricted status,
                            ``(ii) if the plan is in stable status as 
                        of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that any such increase or change in 
                        benefits will be paid from additional 
                        contributions not required by any collective 
                        bargaining agreement in effect as of the 
                        adoption of the amendment,
                            ``(iii) if the plan is in endangered status 
                        as of the adoption of such amendment, the plan 
                        actuary certifies in accordance with subsection 
                        (b)(4) that any such increase or change in 
                        benefits will be paid from additional 
                        contributions not contemplated in any current 
                        funding improvement plan, or
                            ``(iv) the increase or change in benefits 
                        is required by law or is a de minimis change.
                    ``(B) Increases under critical or critical and 
                declining status.--Unless required as a condition of 
                qualification under part I of subchapter D of chapter 1 
                of the Internal Revenue Code of 1986 or to comply with 
                other applicable law, in the case of a plan which is in 
                critical or critical and declining status, no increase 
                in benefits, change in the accrual rate of benefits, or 
                change in the rate at which benefits become 
                nonforfeitable which increases plan liabilities shall 
                take effect while the plan is in such status, without 
                regard to whether such increase or change would 
                otherwise occur under the provisions of the plan, 
                unless the increase in plan liabilities due to the 
                change is de minimis.
            ``(2) Contribution reductions.--The plan sponsor of any 
        multiemployer plan shall not accept any collective bargaining 
        agreement or participation agreement which reduces the rate of 
        contributions under the plan for any participants, suspends 
        contributions with respect to any period of service, or 
        directly or indirectly excludes younger, probationary, or newly 
        hired employees from participation in the plan, unless--
                    ``(A) the plan is in unrestricted status as of the 
                adoption of such agreement and the plan actuary 
                certifies in accordance with subsection (b)(4) that the 
                reduction in contributions will not cause the plan to 
                no longer be in unrestricted status,
                    ``(B) the reduction in contributions is accompanied 
                by a reduction in future accruals for the affected 
                participants, and the plan actuary certifies in 
                accordance with subsection (b)(4) that the combined 
                effect of the changes in contributions and benefits is 
                not projected to reduce the funded percentage of the 
                plan in any year, or
                    ``(C) subject to regulations issued by the 
                Secretary of the Treasury, the plan sponsor reasonably 
                determines that the acceptance of such an agreement is 
                in the best interests of plan participants and 
                beneficiaries and that rejection of the agreement would 
                have an adverse financial effect on the plan.''.
            (3) Stable and unrestricted plans.--Subsection (b) of 
        section 305 of such Act (29 U.S.C. 1085) is amended--
                    (A) by striking ``Endangered and Critical'' in the 
                heading,
                    (B) by redesignating paragraphs (1), (2), (3), (4), 
                (5), and (6) as paragraphs (2), (3), (4), (5), (6), and 
                (7), respectively, and
                    (C) by inserting before paragraph (2) the following 
                new paragraph:
            ``(1) Stable and unrestricted status.--
                    ``(A) Stable.--A multiemployer plan is in stable 
                status for a plan year if, as determined by the plan 
                actuary under paragraph (4), the plan is not in 
                unrestricted status for the plan year, is not in 
                endangered, critical, or critical and declining status 
                for the plan year, and is not described in paragraph 
                (6).
                    ``(B) Unrestricted.--A multiemployer plan is in 
                unrestricted status for a plan year if, as determined 
                by the plan actuary under paragraph (4)--
                            ``(i) the plan is not in endangered, 
                        critical, or critical and declining status for 
                        the plan year,
                            ``(ii) the plan is not described in 
                        paragraph (6), and
                            ``(iii) as of the beginning of the plan 
                        year--
                                    ``(I) the plan's current liability 
                                funded percentage for such plan year is 
                                at least 70 percent and the plan's 
                                projected funded percentage as of the 
                                first day of the 15th succeeding plan 
                                year is at least 115 percent, or
                                    ``(II) the plan's current liability 
                                funded percentage for such plan year is 
                                at least 80 percent.
                    ``(C) Current liability funded percentage.--For 
                purposes of this section, the term `current liability 
                funded percentage' means the percentage equal to a 
                fraction the numerator of which is the value of plan 
                assets (as determined for purposes of section 
                304(c)(6)(A)(ii)(II)) and the denominator of which is 
                the current liabilities of the plan (as defined in 
                section 304(c)(6)(D)).''.
            (4) Amendment to annual certification by plan actuary.--
        Subparagraph (A) of paragraph (4) (as redesignated by paragraph 
        (3)) of section 305(b) of such Act (29 U.S.C. 1085(b)) is 
        amended by inserting ``whether or not the plan is in 
        unrestricted or stable status for such plan year,'' in clause 
        (i) before ``whether or not the plan is in endangered status''.
            (5) Conforming and technical amendments.--
                    (A) Technical correction.--Section 305(b)(3)(B) of 
                such Act (29 U.S.C. 1085(b)(3)(B)) is amended by 
                redesignating the clause (iv) relating to projections 
                of critical and declining status, as added by section 
                201(a)(5) of the Consolidated and Further Continuing 
                Appropriations Act, 2015, as clause (v), and by moving 
                such clause to the position immediately after clause 
                (iv).
                    (B) Conforming amendments.--
                            (i) Paragraphs (2) and (3) of section 
                        305(b) of such Act (29 U.S.C. 1085(b)), as 
                        redesignated by paragraph (3), are each amended 
                        by striking ``paragraph (3)'' and inserting 
                        ``paragraph (4)''.
                            (ii) Section 305(b)(2) of such Act (29 
                        U.S.C. 1085(b)(2)), as so redesignated and 
                        amended, is further amended by striking 
                        ``paragraph (5)'' and inserting ``paragraph 
                        (6)''.
                            (iii) Section 305(b)(4) of such Act (29 
                        U.S.C. 1085(b)(4)), as so redesignated, is 
                        amended--
                                    (I) by striking ``paragraph (4)'' 
                                in subparagraph (B)(iv) thereof and 
                                inserting ``paragraph (5)'',
                                    (II) by striking ``subsection 
                                (e)(9)'' both places it appears in 
                                subparagraph (B)(v), as redesignated by 
                                subparagraph (A), and inserting 
                                ``subsection (f)(9)'',
                                    (III) by striking ``subsection 
                                (e)(3)(A)(ii)'' in subparagraph (B)(v), 
                                as so redesignated, and inserting 
                                ``subsection (f)(3)(A)(ii)'',
                                    (IV) by striking ``subsection (e)'' 
                                in subparagraph (B)(v), as so 
                                redesignated, and inserting 
                                ``subsection (f)'',
                                    (V) by striking ``paragraph (4)'' 
                                each place it appears in subparagraphs 
                                (D)(i) and (D)(v) thereof and inserting 
                                ``paragraph (5)'',
                                    (VI) by striking ``subsection 
                                (e)(8)'' in subparagraph (D)(iii)(I) 
                                thereof and inserting ``subsection 
                                (f)(8)'',
                                    (VII) by striking ``paragraph (5)'' 
                                in subparagraph (D)(iii) thereof and 
                                inserting ``paragraph (6)'', and
                                    (VIII) by striking ``(iii) In the 
                                case of'' in subparagraph (D)(iii) 
                                thereof and inserting ``(iii) Special 
                                rule.--''.
                            (iv) Section 305(b)(5) of such Act (29 
                        U.S.C. 1085(b)(5)), as redesignated by 
                        paragraph (3), is amended--
                                    (I) by striking ``paragraph (2)'' 
                                and inserting ``paragraph (3)'',
                                    (II) by striking ``paragraph 
                                (3)(B)(iv)'' and inserting ``paragraph 
                                (4)(B)(iv)'',
                                    (III) by striking ``paragraph (3)'' 
                                in subparagraph (A) thereof and 
                                inserting ``paragraph (4)'',
                                    (IV) by striking ``paragraph 
                                (3)(A)'' in subparagraph (A) thereof 
                                and inserting ``paragraph (4)(A)'',
                                    (V) by striking ``paragraph (2)'' 
                                in subparagraph (B) thereof and 
                                inserting ``paragraph (3)'', and
                                    (VI) by striking ``subsection 
                                (e)(4)(B)'' in subparagraph (C) thereof 
                                and inserting ``subsection (f)(4)(B)''.
                            (v) Section 305(b)(6)(A) of such Act (29 
                        U.S.C. 1085(b)(6)(A)), as so redesignated, is 
                        amended--
                                    (I) by striking ``paragraph 
                                (3)(A)'' and inserting ``paragraph 
                                (4)(A)'',
                                    (II) by striking ``paragraph 
                                (1)(A)'' and inserting ``paragraph 
                                (2)(A)'', and
                                    (III) by striking ``paragraph 
                                (1)(B)'' and inserting ``paragraph 
                                (2)(B)''.
                            (vi) Section 305(b)(7) of such Act (29 
                        U.S.C. 1085(b)(7)), as so redesignated, is 
                        amended by striking ``paragraph (2)'' and 
                        inserting ``paragraph (3)''.
                            (vii) Paragraphs (1)(A), (4)(A)(ii), 
                        (4)(C)(i), (4)(C)(ii), (4)(D), (5)(A)(i), 
                        (5)(B), and (8) of subsection (d), and 
                        subsections (e)(2), (f)(1)(A), (f)(4)(B)(i), 
                        (f)(4)(B)(ii)(I), (f)(5), and (g)(3) of section 
                        305 of such Act (29 U.S.C. 1085), as 
                        respectively redesignated by paragraph (2), are 
                        each amended by striking ``subsection 
                        (b)(3)(A)'' and inserting ``subsection 
                        (b)(4)(A)''.
                            (viii) Section 305(d)(3)(A)(i)(I) of such 
                        Act (29 U.S.C. 1085(d)(3)(A)(i)(I)), as so 
                        redesignated, is amended by striking 
                        ``paragraph (b)(3)'' and inserting ``subsection 
                        (b)(4)''.
                            (ix) Section 305(d)(4)(D) of such Act (29 
                        U.S.C. 1085(d)(4)(D)), as so redesignated, is 
                        amended by striking ``subsection (d)'' and 
                        inserting ``subsection (e)''.
                            (x) Section 305(e) of such Act (29 U.S.C. 
                        1085(e)), as so redesignated, is amended to 
                        read as follows:
    ``(e) Rules for Operation of Plan During Adoption and Improvement 
Periods.--A plan may not be amended after the date of the adoption of a 
funding improvement plan under subsection (d) so as to be inconsistent 
with the funding improvement plan or the requirements of subsection 
(c).''.
                            (xi) Clauses (i)(I) and (ii)(I) of section 
                        305(f)(4)(B) of such Act (29 U.S.C. 
                        1085(f)(4)(B)), as so redesignated, are each 
                        amended by striking ``subsection (b)(2)'' and 
                        inserting ``subsection (b)(3)''.
                            (xii) Subsections (f)(8)(A)(ii) and 
                        (g)(2)(A) of section 305 of such Act (29 U.S.C. 
                        1085), as so redesignated, are each amended by 
                        striking ``subsection (b)(3)(D)'' and inserting 
                        ``subsection (b)(4)(D)''.
                            (xiii) Section 305(f)(9)(J) of such Act (29 
                        U.S.C. 1085(f)(9)(J)), as so redesignated, is 
                        amended--
                                    (I) by striking ``subsection 
                                (b)(3)'' and inserting ``subsection 
                                (b)(4)'', and
                                    (II) by striking ``paragraphs (1) 
                                and (2)'' in clause (i) thereof and 
                                inserting ``paragraphs (2) and (3)''.
                            (xiv) Subparagraphs (A) and (B) of section 
                        305(g)(1) of such Act (29 U.S.C. 1085(g)(1)), 
                        as so redesignated, are each amended by 
                        striking ``subsection (e)'' and inserting 
                        ``subsection (f)''.
                            (xv) Paragraph (2)(A) of section 305(g) of 
                        such Act (29 U.S.C. 1085(g)), as so 
                        redesignated, is amended by striking 
                        ``(b)(3)(D)'' and inserting ``(b)(4)(D)''.
                            (xvi) Section 305(h) of such Act (29 U.S.C. 
                        1085(h)), as so redesignated, is amended--
                                    (I) by striking ``subsection (e)(8) 
                                or (f)'' in paragraph (1) thereof and 
                                inserting ``subsection (f)(8) or (g)'',
                                    (II) by striking ``subsection 
                                (e)(9)'' in paragraph (1) thereof and 
                                inserting ``subsection (f)(9)'',
                                    (III) by striking ``subsection 
                                (e)(7)'' in paragraph (2) thereof and 
                                inserting ``subsection (f)(7)'', and
                                    (IV) by striking ``rehabilitation 
                                plan'' and all that follows in 
                                paragraph (3)(B) thereof and inserting 
                                ``rehabilitation plan. The preceding 
                                sentence shall not apply to any 
                                increase in contribution requirements 
                                due to increased levels of work, 
                                employment, or periods for which 
                                compensation is provided, except to the 
                                extent such an increase is used to 
                                provide an increased accrual rate of 
                                benefits or change in the rate at which 
                                benefits become nonforfeitable which 
                                increases plan liabilities.''.
                            (xvii) Section 305(i) of such Act (29 
                        U.S.C. 1085(i)), as so redesignated, is 
                        amended--
                                    (I) by striking ``subsection (c)'' 
                                and inserting ``subsection (d)'', and
                                    (II) by striking ``subsection (e)'' 
                                and inserting ``subsection (f)''.
                            (xviii) Section 305(j)(2) of such Act (29 
                        U.S.C. 1085(j)(2)), as so redesignated, is 
                        amended by striking ``subsections (c) and (e)'' 
                        and inserting ``subsections (d) and (f)''.
                            (xix) Section 101(f)(2)(B) of such Act (29 
                        U.S.C. 1021(f)(2)(B)) is amended--
                                    (I) by striking ``305(i)'' in 
                                clause (i)(II) and inserting 
                                ``305(k)'', and
                                    (II) by striking ``305(i)(8)'' in 
                                clause (ii)(II) and inserting 
                                ``305(k)(8)''.
                            (xx) Section 103(f)(1)(B)(ii) of such Act 
                        (29 U.S.C. 1023(f)(1)(B)(ii)) is amended by 
                        striking ``305(i)(2)'' and inserting 
                        ``305(k)(2)''.
                            (xxi) Section 302(b)(3) of such Act (29 
                        U.S.C. 1082) is amended by striking ``section 
                        305(e)'' and inserting ``section 305(f)''.
                            (xxii) Section 4231(e)(2)(A) of such Act 
                        (29 U.S.C. 1411(e)(2)(A)) is amended by 
                        striking ``section 305(b)(4)'' and inserting 
                        ``305(b)(7)''.
                            (xxiii) Section 4233 of such Act (29 U.S.C. 
                        1413) is amended--
                                    (I) by striking ``305(e)(9)'' each 
                                place it appears in subsections (b)(2) 
                                and (e)(1)(A) and inserting 
                                ``305(f)(9)'', and
                                    (II) by striking 
                                ``305(e)(9)(E)(vi)'' in subsection 
                                (e)(2) and inserting 
                                ``305(f)(9)(E)(vi)''.
                            (xxiv) Section 4245 of such Act (29 U.S.C. 
                        1426), as amended by this Act, is amended--
                                    (I) by striking ``305(b)(2),,'' in 
                                subsection (c)(1), as redesignated by 
                                section 112, and inserting 
                                ``305(b)(3),'',
                                    (II) by striking ``305(b)(2)'' each 
                                place it appears in subsections (c)(2), 
                                (d)(1), and (d)(2), as so redesignated, 
                                and inserting ``305(b)(3)'', and
                                    (III) by striking ``305(e)(9)'' in 
                                subsection (f), as so redesignated, and 
                                inserting ``305(f)(9)''.
                            (xxv) The heading of section 305 of such 
                        Act (29 U.S.C. 1085) is amended by striking 
                        ``in endangered status or critical status''.
            (6) Withdrawal liability determination for plans emerging 
        from endangered or critical status.--Section 305(h) of such Act 
        (29 U.S.C. 1085(h)), as redesignated by paragraph (2) and as 
        amended by paragraph (5), is further amended by striking 
        paragraph (4) and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Emergence from endangered or critical status.--
                    ``(A) In general.--In the case of increases in the 
                contribution rate (or other increases in contribution 
                requirements unless due to increased levels of work, 
                employment, or periods for which compensation is 
                provided) disregarded pursuant to paragraph (3), this 
                subsection shall cease to apply as of the later of--
                            ``(i) the end of the first plan year 
                        following the plan year in which the plan is no 
                        longer in endangered or critical status, or
                            ``(ii) the end of the plan year which 
                        includes the expiration date of the first 
                        collective bargaining agreement requiring plan 
                        contributions which expires after the plan is 
                        no longer in endangered or critical status.
                    ``(B) Highest contribution rate.--Notwithstanding 
                subparagraph (A), once the plan emerges from endangered 
                or critical status--
                            ``(i) increases in the contribution rate 
                        disregarded pursuant to paragraph (3) shall 
                        continue to be disregarded in determining the 
                        highest contribution rate under section 4219(c) 
                        for plan years during which the plan was in 
                        endangered or critical status, and
                            ``(ii) the highest contribution rate for 
                        purposes of such section shall be the greater 
                        of--
                                    ``(I) the sum of--
                                            ``(aa) the employer's 
                                        contribution rate as of the 
                                        later of the last day of the 
                                        last plan year ending before 
                                        December 31, 2014, and the last 
                                        day of the plan year for which 
                                        the employer first had an 
                                        obligation to contribute to the 
                                        plan, and
                                            ``(bb) any contribution 
                                        increases determined in 
                                        accordance with this section 
                                        after such later date and 
                                        before the date the employer 
                                        withdraws from the plan, or
                                    ``(II) the highest contribution 
                                rate for any plan year after the plan 
                                year which includes the earlier of--
                                            ``(aa) the expiration date 
                                        of the first collective 
                                        bargaining agreement applicable 
                                        to the withdrawing employer 
                                        requiring plan contributions 
                                        which expires after the plan is 
                                        no longer in endangered or 
                                        critical status, or
                                            ``(bb) the date as of which 
                                        the withdrawing employer 
                                        negotiated a contribution rate 
                                        effective after the plan year 
                                        in which the plan is no longer 
                                        in endangered or critical 
                                        status.''.
            (7) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Determination of Endangered Status.--Paragraph (2) of section 
305(b) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085(b)), as redesignated by subsection (a)(3), is amended to 
read as follows:
            ``(2) Endangered status.--A multiemployer plan is in 
        endangered status for a plan year if, as determined by the plan 
        actuary under paragraph (5), the plan is not in critical or 
        declining status for the plan year and is not described in 
        paragraph (7), and, as of the beginning of the plan year--
                    ``(A) the plan's funded percentage for such plan 
                year is less than 80 percent,
                    ``(B) the plan is projected to have an accumulated 
                funding deficiency for any of the 9 succeeding plan 
                years, taking into account any extension of 
                amortization periods under section 304(d), or
                    ``(C) the plan's projected funded percentage as of 
                the first day of the 15th succeeding plan year is less 
                than 100 percent.''.
    (c) Determination of Critical Status.--Paragraph (3) of section 
305(b) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085(b)), as redesignated by subsection (a)(3), is amended to 
read as follows:
            ``(3) Critical status.--
                    ``(A) In general.--A multiemployer plan is in 
                critical status for a plan year if, as determined by 
                the plan actuary under paragraph (5), the plan is not 
                in declining status for the plan year and, as of the 
                beginning of the plan year--
                            ``(i) the plan's funded percentage is less 
                        than 65 percent,
                            ``(ii) the plan has an accumulated funding 
                        deficiency for the plan year, or is projected 
                        to have such an accumulated funding deficiency 
                        for any of the 6 succeeding plan years, taking 
                        into account any extension of amortization 
                        periods under section 304(d), or
                            ``(iii) the plan's projected funded 
                        percentage as of the first day of the 15th 
                        succeeding plan year is less than 80 percent.
                    ``(B) Original plans.--Notwithstanding subparagraph 
                (A), a multiemployer plan which is an original plan 
                pursuant to section 4233A(d)(3) shall be treated as 
                being in critical status for the period of 15 
                consecutive plan years beginning with the plan year 
                that includes the date of the partition under section 
                4233A.''.
    (d) Declining Status.--
            (1) In general.--
                    (A) The following provisions of section 305 of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1085) are each amended by striking ``critical 
                and declining'' each place it appears and inserting 
                ``declining'':
                            (i) Subsection (a)(4) (as redesignated by 
                        subsection (a)(1)).
                            (ii) Subparagraphs (A) and (B)(i) of 
                        subsection (b)(1), as added by subsection 
                        (a)(3).
                            (iii) Subsection (b)(4)(B)(v) (as 
                        redesignated by subsection (a)(3)).
                            (iv) The heading of clause (v) of 
                        subsection (b)(4)(B), as redesignated by 
                        subsection (a)(3).
                            (v) Paragraph (1)(B), and the heading of 
                        such paragraph (1)(B), of subsection (c), as 
                        added by subsection (a)(2).
                            (vi) The heading of paragraph (9) of 
                        subsection (f) (as redesignated by subsection 
                        (a)(2)).
                            (vii) Subparagraphs (A), (C), (G)(i), and 
                        (J) of subsection (f)(9) (as so redesignated).
                            (viii) Subsection (h)(1) (as so 
                        redesignated).
                    (B) Subsections (c), as amended by section 221, and 
                (e)(2)(A), as amended by this section, of section 4231 
                of such Act (29 U.S.C. 1411(e)(2)(A)) are each further 
                amended by striking ``critical and declining status'' 
                and inserting ``declining status''.
                    (C) Section 4233(b)(1) of such Act (29 U.S.C. 
                1413(b)(1)) is amended by striking ``critical and 
                declining status'' and inserting ``declining status''.
                    (D) Section 4245(f) of such Act (29 U.S.C. 1426), 
                as amended by section 112 and subsection (a), is 
                further amended by striking ``critical and declining 
                status'' and inserting ``declining status''.
            (2) Determination of declining status.--
                    (A) In general.--Subsection (b) of section 305 of 
                such Act (29 U.S.C. 1085) is amended--
                            (i) by striking paragraph (7), as 
                        redesignated by subsection (a)(3),
                            (ii) by redesignating paragraphs (4), (5), 
                        and (6), as so redesignated, as paragraphs (5), 
                        (6), and (7), respectively, and
                            (iii) by inserting after paragraph (3), as 
                        so redesignated, the following new paragraph:
            ``(4) Declining status.--A multiemployer plan is in 
        declining status for a plan year if--
                    ``(A) as determined by the plan actuary under 
                paragraph (5), as of the beginning of the plan year the 
                plan is projected to become insolvent within the plan 
                year or any of the 29 succeeding plan years,
                    ``(B) the plan is otherwise in critical status for 
                the plan year as determined by the plan actuary under 
                paragraph (5), and the plan sponsor determines that, 
                based on reasonable actuarial assumptions and upon 
                exhaustion of all reasonable measures, the plan cannot 
                reasonably be expected to emerge from critical status 
                within the next 30 plan years, or
                    ``(C) the plan has a funded percentage for the plan 
                year which is greater than the projected funded 
                percentage as of the first day of the 15th succeeding 
                plan year, unless the funded percentage for the plan 
                year is 100 percent or greater and the projected funded 
                percentage as of the first day of such 15th succeeding 
                plan year is less than 100 percent.''.
                    (B) Conforming amendments.--
                            (i) Paragraph (1) of section 305(b) of such 
                        Act (29 U.S.C. 1085), as added by subsection 
                        (a)(3), is amended--
                                    (I) by striking ``paragraph (4)'' 
                                each place it appears in subparagraphs 
                                (A) and (B) and inserting ``paragraph 
                                (5)'', and
                                    (II) by striking ``paragraph (6)'' 
                                each place it appears in subparagraphs 
                                (A) and (B) and inserting ``paragraph 
                                (7)''.
                            (ii) Subsection (c) of section 305 of such 
                        Act (29 U.S.C. 1085), as added by subsection 
                        (a)(2), is amended by striking ``(b)(4)'' each 
                        place it appears in paragraphs (1)(A)(i), 
                        (1)(A)(ii), (1)(A)(iii), (2)(A), and (2)(B) and 
                        inserting ``(b)(5)''.
                            (iii) Section 305(b)(5) of such Act (29 
                        U.S.C. 1085(b)(5)), as further redesignated by 
                        subparagraph (A) and as amended by section 321 
                        and subsection (a), is further amended--
                                    (I) by striking ``paragraph (5)'' 
                                in subparagraph (B)(iv) thereof and 
                                inserting ``paragraph (6)'',
                                    (II) by striking ``paragraph (5)'' 
                                each place it appears in subparagraphs 
                                (D)(i) and (D)(vi) thereof and 
                                inserting ``paragraph (6)'', and
                                    (III) by striking ``paragraph (6)'' 
                                in subparagraph (D)(iv) thereof and 
                                inserting ``paragraph (7)''.
                            (iv) Section 305(b)(6) of such Act (29 
                        U.S.C. 1085(b)(6)), as so further redesignated 
                        and amended, is further amended--
                                    (I) by striking ``paragraph 
                                (4)(B)(iv)'' and inserting ``paragraph 
                                (5)(B)(iv)'',
                                    (II) by striking ``paragraph (4)'' 
                                in subparagraph (A) thereof and 
                                inserting ``paragraph (5)'', and
                                    (III) by striking ``paragraph 
                                (4)(A)'' in subparagraph (A) thereof 
                                and inserting ``paragraph (5)(A)''.
                            (v) Section 305(b)(7)(A) of such Act (29 
                        U.S.C. 1085(b)(7)(A)), as so further 
                        redesignated and amended, is further amended--
                                    (I) by striking ``paragraph 
                                (4)(A)'' and inserting ``paragraph 
                                (5)(A)'', and
                                    (II) by striking ``either paragraph 
                                (2)(A) or paragraph (2)(B)'' and 
                                inserting ``any subparagraph of 
                                paragraph (2)''.
                            (vi) Section 305(b)(7)(B) of such Act (29 
                        U.S.C. 1085(b)(7)(B)), as so further 
                        redesignated, is amended by striking ``critical 
                        or endangered'' and inserting ``endangered, 
                        critical, or declining''.
                            (vii) Paragraphs (1)(A), (4)(A)(ii), 
                        (4)(C)(i), (4)(C)(ii), (4)(D), and (8) of 
                        subsection (d), and subsections (f)(1)(A), 
                        (f)(4)(B)(i), (f)(4)(B)(ii)(I), (f)(5), and 
                        (g)(3) of section 305 of such Act (29 U.S.C. 
                        1085), as redesignated and amended by 
                        subsection (a), are each further amended by 
                        striking ``subsection (b)(4)(A)'' and inserting 
                        ``subsection (b)(5)(A)''.
                            (viii) Section 305(d)(3)(A)(i)(I) of such 
                        Act (29 U.S.C. 1085(d)(3)(A)(i)(I)), as so 
                        redesignated and amended, is further amended by 
                        striking ``subsection (b)(4)'' and inserting 
                        ``subsection (b)(5)''.
                            (ix) Subsections (f)(8)(A)(ii) and 
                        (g)(2)(A) of section 305 of such Act (29 U.S.C. 
                        1085), as so redesignated and amended, are each 
                        further amended by striking ``subsection 
                        (b)(4)(D)'' and inserting ``subsection 
                        (b)(5)(D)''.
                            (x) Section 305(f)(9)(J) of such Act (29 
                        U.S.C. 1085(f)(9)(J)), as so redesignated and 
                        amended, is further amended by striking 
                        ``subsection (b)(4)'' and inserting 
                        ``subsection (b)(5)''.
                            (xi) Section 4231(e)(2)(A) of such Act (29 
                        U.S.C. 1411(e)(2)(A)), as amended by this 
                        section, is further amended by striking 
                        ``305(b)(7)'' and inserting ``305(b)(4)''.
            (3) Solvency plan.--
                    (A) In general.--Paragraph (4) (as redesignated by 
                subsection (a)(1) and amended by paragraph (1)) of 
                section 305(a) of such Act (29 U.S.C. 1085(a)) is 
                amended--
                            (i) by redesignating subparagraph (B) as 
                        subparagraph (D), and
                            (ii) by striking subparagraph (A) and 
                        inserting before subparagraph (D) (as so 
                        redesignated) the following new subparagraphs:
                    ``(A) the plan sponsor shall adopt and implement a 
                solvency plan in accordance with the requirements of 
                subsection (h),
                    ``(B) any rehabilitation plan in place as of the 
                date the plan enters declining status shall continue to 
                apply throughout the solvency plan adoption period,
                    ``(C) the requirements of subsection (i) and 
                paragraphs (6) and (7) of subsection (f) shall apply 
                during the solvency plan adoption period and the 
                solvency attainment period, and''.
                    (B) Adoption of plan.--Section 305 of such Act (29 
                U.S.C. 1085), as amended by this section, is further 
                amended--
                            (i) by redesignating subsection (l), as 
                        added by title V of this Act, as subsection 
                        (n), and by further redesignating subsections 
                        (h), (i), (j), and (k), as redesignated by 
                        subsection (a)(2), as subsections (j), (k), 
                        (l), and (m), respectively, and
                            (ii) by inserting after subsection (g), as 
                        redesignated by subsection (a)(2), the 
                        following new subsections:
    ``(h) Solvency Plan Must Be Adopted for Multiemployer Plans in 
Declining Status.--
            ``(1) In general.--In any case in which a multiemployer 
        plan is in declining status for a plan year, the plan sponsor, 
        in accordance with this subsection--
                    ``(A) shall adopt a solvency plan not later than 
                240 days following the required date for the actuarial 
                certification of declining status under subsection 
                (b)(5)(A), and
                    ``(B) within 30 days after the adoption of the 
                solvency plan shall provide to the bargaining parties 1 
                or more schedules showing revised benefit structures, 
                revised contribution structures, or both, which, if 
                adopted, may reasonably be expected to enable the 
                multiemployer plan to meet the requirements of 
                paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                current accrual rate) based on the 
                                contribution rate in effect as of the 
                                later of the first day of the plan year 
                                in which the plan enters declining 
                                status or the date of a partition under 
                                section 4233A, and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.
        No schedule provided to or adopted by the bargaining parties 
        shall provide for a monthly benefit accrual rate in excess of 
        the rate described in subparagraph (B)(i)(II).
            ``(2) Exception for years after process begins.--Paragraph 
        (1) shall not apply to a plan year if such year is in a 
        solvency plan adoption period or solvency attainment period by 
        reason of the plan being in declining status for a preceding 
        plan year, except that the next update of the solvency plan 
        shall fulfill the requirement of paragraph (1)(B)(i). For 
        purposes of this section, such preceding plan year shall be the 
        initial determination year with respect to the solvency plan to 
        which it relates.
            ``(3) Solvency plan.--For purposes of this section, a 
        solvency plan is a plan which consists of the actions, 
        including options or a range of options to be proposed to the 
        bargaining parties, formulated, based on reasonably anticipated 
        experience and reasonable actuarial assumptions, to enable the 
        plan to delay or avoid the projected insolvency.
            ``(4) Solvency attainment period.--For purposes of this 
        section--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the solvency attainment period for 
                any solvency plan adopted pursuant to this subsection 
                is the period--
                            ``(i) beginning on the first day of the 
                        first plan year of the multiemployer plan 
                        beginning after the earlier of--
                                    ``(I) the second anniversary of the 
                                date of the adoption of the solvency 
                                plan, or
                                    ``(II) the expiration of the 
                                collective bargaining agreements in 
                                effect on the due date for the 
                                actuarial certification of declining 
                                status for the initial determination 
                                year under subsection (b)(5)(A) and 
                                covering, as of such due date, at least 
                                75 percent of the active participants 
                                in such plan, and
                            ``(ii) ending on the date the plan either 
                        emerges from declining status or becomes 
                        insolvent.
                    ``(B) Coordination with changes in status.--
                            ``(i) Plans no longer in declining 
                        status.--If the plan's actuary certifies in 
                        accordance with subparagraph (C) for a plan 
                        year in any solvency plan adoption period or 
                        solvency attainment period that the plan is no 
                        longer in declining status, the solvency plan 
                        adoption period or solvency attainment period, 
                        whichever is applicable, shall end as of the 
                        date of such certification.
                            ``(ii) Plans in critical or endangered 
                        status.--If the plan's actuary certifies under 
                        subsection (b)(5)(A) for the plan year 
                        described in clause (i) that the plan is in 
                        critical or endangered rather than declining 
                        status, the provisions of subsections (d) and 
                        (e), or subsections (f) and (g), whichever are 
                        applicable, shall be applied as if such plan 
                        year were an initial determination year, except 
                        that the plan may not be amended in a manner 
                        inconsistent with the solvency plan in effect 
                        for the preceding plan year until a new funding 
                        improvement plan or rehabilitation plan, 
                        whichever is applicable, is adopted.
                    ``(C) Emergence.--A plan in declining status shall 
                remain in such status until a plan year for which the 
                plan actuary certifies, in accordance with subsection 
                (b)(5)(A), that the plan is not described in one or 
                more of the subparagraphs in subsection (b)(4) as of 
                the beginning of the plan year.
            ``(5) Updates to solvency plans and schedules.--
                    ``(A) Solvency plan.--The plan sponsor shall 
                annually update the solvency plan and shall file the 
                update with the plan's annual report under section 104.
                    ``(B) Schedules.--The plan sponsor shall annually 
                update any schedule of contribution rates provided 
                under this subsection to reflect the experience of the 
                plan.
                    ``(C) Duration of schedule.--A schedule of 
                contribution rates provided by the plan sponsor and 
                relied upon by bargaining parties in negotiating a 
                collective bargaining agreement shall remain in effect 
                for the duration of that collective bargaining 
                agreement.
            ``(6) Imposition of schedule where failure to adopt 
        solvency plan.--
                    ``(A) Initial contribution schedule.--If--
                            ``(i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan that was in effect at the 
                        time the plan entered declining status expires, 
                        and
                            ``(ii) after receiving one or more 
                        schedules from the plan sponsor under paragraph 
                        (1)(B), the bargaining parties with respect to 
                        such agreement fail to adopt a contribution 
                        schedule with terms consistent with the 
                        solvency plan and a schedule from the plan 
                        sponsor,
                the plan sponsor shall implement the schedule described 
                in paragraph (1)(B)(i) beginning on the date specified 
                in subparagraph (C).
                    ``(B) Subsequent contribution schedule.--If--
                            ``(i) a collective bargaining agreement 
                        providing for contributions under a 
                        multiemployer plan in accordance with a 
                        schedule provided by the plan sponsor pursuant 
                        to a solvency plan (or imposed under 
                        subparagraph (A)) expires while the plan is 
                        still in declining status, and
                            ``(ii) after receiving one or more updated 
                        schedules from the plan sponsor under paragraph 
                        (5)(B), the bargaining parties with respect to 
                        such agreement fail to adopt a contribution 
                        schedule with terms consistent with the updated 
                        solvency plan and a schedule from the plan 
                        sponsor,
                then the contribution schedule applicable under the 
                expired collective bargaining agreement, as updated and 
                in effect on the date the collective bargaining 
                agreement expires, shall be implemented by the plan 
                sponsor beginning on the date specified in subparagraph 
                (C).
                    ``(C) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) or (B) expires.
            ``(7) Solvency plan adoption period.--For purposes of this 
        section, the term `solvency plan adoption period' means the 
        period beginning on the date of the certification under 
        subsection (b)(5)(A) for the initial determination year and 
        ending on the day before the first day of the solvency 
        attainment period.
    ``(i) Rules for Operation of Plan During Adoption and Attainment 
Periods.--
            ``(1) Compliance with solvency plan.--
                    ``(A) In general.--A plan may not be amended after 
                the date of the adoption of a solvency plan under 
                subsection (h) so as to be inconsistent with the 
                solvency plan.
                    ``(B) Special rules for benefit increases.--A plan 
                may not be amended after the date of the adoption of a 
                solvency plan under subsection (h) so as to increase 
                benefits, including future benefit accruals, unless the 
                increase is required by law or is a de minimis change.
                    ``(C) Special rules for increases in compensation 
                or contribution rate.--Any increase in employee 
                compensation or contribution rates which takes effect 
                after the first day of the plan year in which the plan 
                enters declining status shall not give rise to an 
                increase in benefits or future benefit accruals under 
                the plan.
            ``(2) Restriction on lump sums and similar benefits.--
                    ``(A) In general.--Effective on the date the notice 
                of certification of the plan's declining status for the 
                initial determination year under subsection (b)(5)(D) 
                is sent, and notwithstanding section 204(g), the plan 
                shall not pay--
                            ``(i) any payment, in excess of the monthly 
                        amount paid under a single life annuity (plus 
                        any social security supplements described in 
                        the last sentence of section 204(b)(1)(G)), to 
                        a participant or beneficiary whose annuity 
                        starting date (as defined in section 205(h)(2)) 
                        occurs after the date such notice is sent,
                            ``(ii) any payment for the purchase of an 
                        irrevocable commitment from an insurer to pay 
                        benefits, or
                            ``(iii) any other payment specified by the 
                        Secretary of the Treasury by regulations,
                unless it is a de minimis amount.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to a benefit which under section 203(e) may be 
                immediately distributed without the consent of the 
                participant or to any makeup payment in the case of a 
                retroactive annuity starting date or any similar 
                payment of benefits owed with respect to a prior 
                period.
            ``(3) Special rules for plan adoption period.--During the 
        period beginning on the date of the certification under 
        subsection (b)(5)(A) for the initial determination year and 
        ending on the date of the adoption of a solvency plan--
                    ``(A) the plan sponsor may not accept a collective 
                bargaining agreement or participation agreement with 
                respect to the multiemployer plan that provides for--
                            ``(i) a reduction in the level of 
                        contributions for any participants,
                            ``(ii) a suspension of contributions with 
                        respect to any period of service, or
                            ``(iii) any new direct or indirect 
                        exclusion of younger or newly hired employees 
                        from plan participation,
                unless the plan sponsor reasonably determines that the 
                acceptance of such an agreement is in the best 
                interests of participants and beneficiaries and that 
                rejection of such agreement would adversely affect the 
                plan, and
                    ``(B) no amendment of the plan which increases the 
                liabilities of the plan by reason of any increase in 
                benefits, any change in the accrual of benefits, or any 
                change in the rate at which benefits become 
                nonforfeitable under the plan may be adopted unless the 
                amendment is required as a condition of qualification 
                under part I of subchapter D of chapter 1 of the 
                Internal Revenue Code of 1986 or to comply with other 
                applicable law.''.
                    (C) Suspension of benefits.--Section 305 of such 
                Act (29 U.S.C. 1085), as amended by this section, is 
                further amended--
                            (i) by redesignating paragraph (9) of 
                        subsection (f) (as redesignated by subsection 
                        (a)(2)) as paragraph (8) of subsection (h) (as 
                        added by subparagraph (B)), and
                            (ii) by moving such paragraph to the 
                        position immediately after paragraph (7) of 
                        such subsection (h).
            (4) Conforming amendments.--
                    (A) Subsection (a)(4)(D) of section 305 of such Act 
                (29 U.S.C. 1085), as redesignated and amended by the 
                preceding provisions of this section, is further 
                amended by striking ``subsection (f)(9)'' and inserting 
                ``subsection (h)(8)''.
                    (B) Paragraph (5) of section 305(b) of such Act (29 
                U.S.C. 1085(b)), as so redesignated and as amended by 
                section 321 and the preceding provisions of this 
                section, is further amended--
                            (i) by striking ``critical'' in 
                        subparagraph (A)(i)(I) and inserting ``critical 
                        or declining'',
                            (ii) by striking ``funding improvement or 
                        rehabilitation period'' in subparagraph 
                        (A)(i)(II) and inserting ``funding improvement, 
                        rehabilitation, or solvency attainment 
                        period'',
                            (iii) by striking ``funding improvement or 
                        rehabilitation plan'' in subparagraph 
                        (A)(i)(II) and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'',
                            (iv) by striking ``endangered or critical'' 
                        in subparagraph (A)(i)(V)(bb) and inserting 
                        ``endangered, critical, or declining'',
                            (v) by striking ``funding improvement plan 
                        or rehabilitation'' in subparagraph (A)(iv) and 
                        inserting ``funding improvement, 
                        rehabilitation, or solvency'',
                            (vi) by striking ``critical'' each place it 
                        appears in subparagraph (A)(vi) and inserting 
                        ``critical or declining'',
                            (vii) by striking ``rehabilitation period'' 
                        in subparagraph (A)(vi) and inserting 
                        ``rehabilitation or solvency attainment 
                        period'',
                            (viii) by striking ``as described in 
                        subsection (f)(9)'' in subparagraph (B)(v),
                            (ix) by inserting ``if the plan is already 
                        in a rehabilitation period, and'' before ``if 
                        reasonable'' in subparagraph (B)(v)(I),
                            (x) by striking ``subsection (f)(9)'' in 
                        subparagraph (B)(v)(II) and inserting 
                        ``subsection (h)(8)'',
                            (xi) by striking ``endangered or critical'' 
                        both places it appears in subparagraph (D)(i) 
                        and inserting ``endangered, critical, or 
                        declining'',
                            (xii) by striking ``endangered or 
                        critical'' in the heading of subparagraph 
                        (D)(ii) and inserting ``endangered, critical, 
                        or declining'',
                            (xiii) by striking ``endangered or 
                        critical'' in subparagraph (D)(ii) and 
                        inserting ``endangered, critical, or 
                        declining'',
                            (xiv) by striking ``funding improvement or 
                        rehabilitation plan'' both places it appears in 
                        subclauses (I) and (II) of subparagraph (D)(ii) 
                        and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'', and
                            (xv) by adding at the end of subparagraph 
                        (D) the following new clause:
                            ``(vii) Notice of projection to be in 
                        declining status in a future plan year.--In any 
                        case in which it is certified under 
                        subparagraph (A)(i) that a multiemployer plan 
                        will be in declining status for any of 5 
                        succeeding plan years (but not for the current 
                        plan year), the plan sponsor shall, not later 
                        than 30 days after the date of the 
                        certification, provide notification of the 
                        projected declining status to the Pension 
                        Benefit Guaranty Corporation.''.
                    (C) Subparagraph (J) of section 305(h)(8) of such 
                Act (29 U.S.C. 1085(h)(8)), as so redesignated and 
                amended, is further amended--
                            (i) by striking ``critical'' in the heading 
                        and inserting ``declining'', and
                            (ii) by striking ``shall not emerge from 
                        critical status under paragraph (4)(B),'' and 
                        inserting ``shall not emerge from declining 
                        status''.
                    (D) Subsection (j) of section 305 of such Act (29 
                U.S.C. 1085), as so redesignated and amended, is 
                further amended--
                            (i) by striking ``(f)(8) or (g)'' in 
                        paragraph (1) and inserting ``(f)(8), (g), or 
                        (i)'',
                            (ii) by striking ``subsection (f)(9)'' in 
                        paragraph (1) and inserting ``subsection 
                        (h)(8)'',
                            (iii) by striking ``funding improvement or 
                        rehabilitation plan'' in the heading of 
                        paragraph (3) and inserting ``funding 
                        improvement, rehabilitation, or solvency'',
                            (iv) by striking ``funding improvement plan 
                        or rehabilitation plan'' both places it appears 
                        in subparagraphs (A) and (B) of paragraph (3) 
                        and inserting ``funding improvement, 
                        rehabilitation, or solvency plan'',
                            (v) by striking ``endangered or critical'' 
                        in the heading of paragraph (4), as amended by 
                        subsection (a), and inserting ``endangered, 
                        critical, or declining'',
                            (vi) by striking ``endangered or critical'' 
                        each place it appears in paragraph (4), as so 
                        amended, and inserting ``endangered, critical, 
                        or declining'', and
                            (vii) by striking ``critical or 
                        endangered'' in paragraph (4) and inserting 
                        ``endangered, critical, or declining''.
                    (E) Subsection (k) of section 305 of such Act (29 
                U.S.C. 1085), as so redesignated and amended, is 
                further amended--
                            (i) by striking ``or a rehabilitation plan 
                        under subsection (f)'' and inserting ``, a 
                        rehabilitation plan under subsection (f), or a 
                        solvency plan under subsection (h)'',
                            (ii) by striking ``endangered status or a 
                        plan in critical status'' and inserting 
                        ``endangered, critical, or declining status'',
                            (iii) by striking ``has not agreed on a 
                        funding improvement plan or rehabilitation 
                        plan'' and inserting ``has not agreed on a 
                        funding improvement, rehabilitation, or 
                        solvency plan (whichever is applicable)'', and
                            (iv) by striking ``adoption of a funding 
                        improvement plan or rehabilitation plan'' and 
                        inserting ``adoption of a funding improvement, 
                        rehabilitation, or solvency plan''.
                    (F) Subsection (l) of section 305 of such Act (29 
                U.S.C. 1085), as so redesignated and amended, is 
                further amended--
                            (i) by striking ``endangered status or in 
                        critical status'' in paragraph (1) and 
                        inserting ``endangered, critical, or declining 
                        status'',
                            (ii) by striking ``endangered or critical'' 
                        in paragraph (1) and inserting ``endangered, 
                        critical, or declining'', and
                            (iii) by striking ``(d) and (f)'' in 
                        paragraph (2) and inserting ``(d), (f), and 
                        (h)''.
                    (G) Section 101(f)(2)(B) of such Act (29 U.S.C. 
                1021(f)(2)(B)), as amended by this section, is 
                amended--
                            (i) by striking ``305(k)'' in clause 
                        (i)(II) and inserting ``305(m)'', and
                            (ii) by striking ``305(k)(8)'' in clause 
                        (ii)(II) and inserting ``305(m)(8)''.
                    (H) Section 101(k)(1)(K) of such Act (29 U.S.C. 
                1021(k)(1)(K)) is amended--
                            (i) by striking ``critical or endangered'' 
                        and inserting ``endangered, critical, or 
                        declining'', and
                            (ii) by striking ``funding improvement or 
                        rehabilitation'' both places it appears and 
                        inserting ``funding improvement, 
                        rehabilitation, or solvency''.
                    (I) Section 103(f)(1)(B)(ii) of such Act (29 U.S.C. 
                1023(f)(1)(B)(ii)), as amended by this section, is 
                amended by striking ``305(k)(2)'' and inserting 
                ``305(m)(2)''.
                    (J) Section 103(f)(2)(G) of such Act (29 U.S.C. 
                1023(f)(2)(G)) is amended--
                            (i) by striking ``critical or endangered'' 
                        and inserting ``endangered, critical, or 
                        declining'', and
                            (ii) by striking ``funding improvement or 
                        rehabilitation'' and inserting ``funding 
                        improvement, rehabilitation, or solvency''.
                    (K) Section 104(d)(1)(E) of such Act (29 U.S.C. 
                1024(d)(1)(E)) is amended--
                            (i) by striking ``critical or endangered'' 
                        and inserting ``endangered, critical, or 
                        declining'', and
                            (ii) by striking ``funding improvement or 
                        rehabilitation'' and inserting ``funding 
                        improvement, rehabilitation, or solvency''.
                    (L) Section 502(a)(10) of such Act (29 U.S.C. 
                1132(a)(10)) is amended--
                            (i) by striking ``endangered or critical'' 
                        and inserting ``endangered, critical, or 
                        declining'', and
                            (ii) by striking ``funding improvement or 
                        rehabilitation'' each place it appears and 
                        inserting ``funding improvement, 
                        rehabilitation, or solvency''.
                    (M) Section 502(c)(8) of such Act (29 U.S.C. 
                1132(c)(8)) is amended--
                            (i) by striking ``funding improvement plan 
                        or rehabilitation'' in subparagraph (A) and 
                        inserting ``funding improvement, 
                        rehabilitation, or solvency'',
                            (ii) by striking ``endangered or critical'' 
                        in subparagraph (A) and inserting ``endangered, 
                        critical, or declining'',
                            (iii) by striking ``which is not in 
                        seriously endangered status'' in subparagraph 
                        (B), and
                            (iv) by striking ``meet the applicable 
                        benchmarks'' in subparagraph (B) and inserting 
                        ``emerge from endangered status''.
                    (N) Section 4233 of such Act (29 U.S.C. 1413), as 
                amended by this section, is further amended--
                            (i) by striking ``305(f)(9)'' each place it 
                        appears in subsections (b)(2) and (e)(1)(A) and 
                        inserting ``305(h)(8)'', and
                            (ii) by striking ``305(f)(9)(E)(vi)'' in 
                        subsection (e)(2) and inserting 
                        ``305(h)(8)(E)(vi)''.
                    (O) Section 4233(m)(1) of such Act, as added by 
                this Act, is amended by striking ``funding improvement 
                or rehabilitation'' and inserting ``funding 
                improvement, rehabilitation, or solvency''.
                    (P) Section 4233A(h)(4)(C) of such Act, as added by 
                this Act, is amended by striking ``rehabilitation 
                plan'' and inserting ``rehabilitation or solvency 
                plan''.
                    (Q) Section 4233A(m)(1) of such Act, as added by 
                this Act, is amended by striking ``funding improvement 
                or rehabilitation'' and inserting ``funding 
                improvement, rehabilitation, or solvency''.
                    (R) Section 4233A(o)(1) of such Act, as added by 
                this Act, is amended by striking ``305(k)(2)'' and 
                inserting ``305(m)(2)''.
                    (S) Section 4233A(o)(12) of such Act, as added by 
                this Act, is amended by striking ``funding improvement 
                plan or rehabilitation'' and inserting ``funding 
                improvement, rehabilitation, or solvency''.
                    (T) Section 4245 of such Act (29 U.S.C. 1426), as 
                amended by section 112 and this section, is further 
                amended--
                            (i) by striking ``305(b)(3)'' each place it 
                        appears in subsections (c)(1), (c)(2), (d)(1), 
                        and (d)(2) and inserting ``305(b)(3), or a plan 
                        in declining status, as described in section 
                        305(b)(4)'', and
                            (ii) by striking ``305(f)(9)'' in 
                        subsection (f) and inserting ``305(h)(8)''.
    (e) Adjustment of Benefits.--
            (1) In general.--Section 305 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1085), as amended by 
        this section, is further amended--
                    (A) by further redesignating subsections (m) and 
                (n), as redesignated by subsection (d), as subsections 
                (n) and (o), respectively,
                    (B) by redesignating paragraph (8) of subsection 
                (f), as redesignated by subsection (a)(2), as 
                subsection (m), and
                    (C) by moving such subsection to the position 
                immediately after subsection (l).
            (2) Clerical and conforming amendments.--
                    (A) The heading of subsection (m) of section 305 of 
                such Act (29 U.S.C. 1085), as redesignated by paragraph 
                (1), is amended to read as follows:
    ``(m) Adjustment of Benefits.--''.
                    (B) The following provisions of such subsection (m) 
                are amended as follows:
                            (i) Subparagraphs (A), (B), and (C) are 
                        redesignated as paragraphs (1), (2), and (4), 
                        respectively, and moved 2 ems to the left.
                            (ii) Clauses (i), (ii), (iii), and (iv) of 
                        paragraph (1) (as so redesignated) are 
                        redesignated as subparagraphs (A), (B), (C), 
                        and (D), respectively, and moved 2 ems to the 
                        left.
                            (iii) Subclauses (I), (II), and (III) of 
                        paragraph (1)(D) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (iv) Clauses (i), (ii), and (iii) of 
                        paragraph (4) (as so redesignated) are 
                        redesignated as subparagraphs (A), (B), and 
                        (C), respectively, and moved 2 ems to the left, 
                        and the flush sentence at the end of 
                        subparagraph (C) (as so redesignated) is moved 
                        2 ems to the left.
                            (v) Subclauses (I), (II), and (III) of 
                        paragraph (4)(A) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (vi) Subclauses (I) and (II) of paragraph 
                        (4)(B) (as so redesignated) are redesignated as 
                        clauses (i) and (ii), respectively, and moved 2 
                        ems to the left.
                            (vii) Subclauses (I), (II), and (III) of 
                        paragraph (4)(C) (as so redesignated) are 
                        redesignated as clauses (i), (ii), and (iii), 
                        respectively, and moved 2 ems to the left.
                            (viii) Paragraph (1)(A), as so 
                        redesignated, is amended by striking 
                        ``subparagraph (C)'' and inserting ``paragraph 
                        (4)''.
                            (ix) Paragraph (1)(B), as so redesignated, 
                        is amended by striking ``clause (iv)(III)'' and 
                        inserting ``subparagraph (D)(iii)''.
                            (x) Paragraph (1)(D), as so redesignated, 
                        is amended by striking ``this paragraph'' and 
                        inserting ``this subsection''.
                            (xi) Paragraph (2), as so redesignated, is 
                        amended--
                                    (I) by striking ``subparagraph 
                                (A)(iv)(III)'' and inserting 
                                ``paragraph (1)(D)(iii)'', and
                                    (II) by striking ``this paragraph'' 
                                and inserting ``this subsection''.
                            (xii) Paragraph (4)(A), as so redesignated, 
                        is amended by striking ``subparagraph (A)'' and 
                        inserting ``paragraph (1)''.
                            (xiii) Paragraphs (4)(B) and (4)(C), as so 
                        redesignated, are each amended by striking 
                        ``clause (i)'' each place it appears and 
                        inserting ``subparagraph (A)''.
                            (xiv) The last sentence of paragraph 
                        (4)(C), as so redesignated, is amended--
                                    (I) by striking ``subclause (I)'' 
                                and inserting ``clause (i)'', and
                                    (II) by striking ``this 
                                subparagraph'' and inserting ``this 
                                paragraph''.
            (3) Application to all plans in endangered, critical, or 
        declining status.--
                    (A) In general.--Subparagraph (A) of section 
                305(m)(1) of such Act (29 U.S.C. 1085(m)(1)), as 
                redesignated and amended by this section, is further 
                amended--
                            (i) by striking ``the plan sponsor shall'' 
                        and inserting ``the plan sponsor of a 
                        multiemployer plan in endangered, critical, or 
                        declining status may'', and
                            (ii) by striking ``paragraph (1)(B)(i)'' 
                        and inserting ``subsection (d)(1)(B), 
                        (f)(1)(B), or (h)(1)(B), whichever is 
                        applicable''.
                    (B) Conforming amendments.--Subparagraph (B) of 
                section 305(m)(1) of such Act (29 U.S.C. 1085(m)(1)), 
                as redesignated and amended by this section, is further 
                amended by striking ``critical'' both places it appears 
                and inserting ``endangered, critical, or declining''.
            (4) Additional adjustable benefits.--
                    (A) In general.--Subparagraph (D) of section 
                305(m)(1) of such Act (29 U.S.C. 1085(m)(1)), as 
                redesignated by this section, is amended--
                            (i) by inserting ``, including early 
                        reduction factors which are not provided on an 
                        actuarially equivalent basis,'' after ``(i))'' 
                        in clause (ii), as so redesignated,
                            (ii) by striking ``and'' at the end of 
                        clause (ii) (as so redesignated),
                            (iii) by striking ``that would not be 
                        eligible'' and all that follows through the 
                        period in clause (iii) (as so redesignated) and 
                        inserting ``which were adopted (or, if later, 
                        took effect) less than 120 months before the 
                        first day of the first plan year in which the 
                        plan was in endangered, critical, or declining 
                        status,'', and
                            (iv) by adding at the end the following new 
                        clauses:
                            ``(iv) any one-time bonus payment or 
                        `thirteenth check' provision, and
                            ``(v) benefits granted for periods of 
                        service prior to participation in the plan.''.
                    (B) Conforming amendments.--
                            (i) Subparagraph (B) of section 305(m)(1) 
                        of such Act (29 U.S.C. 1085), as redesignated 
                        and amended by this section, is further amended 
                        by striking ``subparagraph (D)(iii)'' and 
                        inserting ``clause (iii), (iv), or (v) of 
                        subparagraph (D)''.
                            (ii) Paragraph (2) of section 305(m) of 
                        such Act (29 U.S.C. 1085), as amended by 
                        paragraph (2)(B), is further amended by 
                        striking ``paragraph (1)(D)(iii)'' and 
                        inserting ``clause (iii), (iv), or (v) of 
                        paragraph (1)(D)''.
                            (iii) Section 4233A(o)(1) of such Act, as 
                        added by this Act and as amended by this 
                        section, is further amended by striking 
                        ``305(m)(2)'' and inserting ``305(n)(2)''.
            (5) Rules relating to suspension of benefits upon return to 
        work.--Subsection (m) of section 305 of such Act (29 U.S.C. 
        1085), as redesignated and amended by this section, is further 
        amended by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Rules relating to suspension of benefits upon return 
        to work.--The plan sponsor of a multiemployer plan in 
        endangered, critical, or declining status may amend rules 
        regarding the suspension of a participant's benefits upon a 
        return to work after commencement of benefits, or the 
        commencement of benefits after normal retirement age (including 
        in the case of continued employment after normal retirement 
        age). Any such changes shall apply only to future payments of 
        benefits.''.
            (6) Additional conforming amendments.--
                    (A) Clause (iii) of section 305(b)(5)(D) of such 
                Act (29 U.S.C. 1085(b)(5)(D)), as redesignated and 
                amended by this section, is further amended--
                            (i) by striking ``critical'' in the heading 
                        and inserting ``endangered, critical, or 
                        declining'',
                            (ii) by striking ``critical status'' both 
                        places it appears and inserting ``endangered, 
                        critical, or declining status'', and
                            (iii) by striking ``subsection (f)(8)'' in 
                        subclause (I) and inserting ``subsection 
                        (m)(1)(D)''.
                    (B) Subsection (j) of section 305 of such Act (29 
                U.S.C. 1085), as amended by subsection (d), is further 
                amended by striking ``(f)(8), (g), or (i)'' and 
                inserting ``(e), (g), (i), or (m)''.
                    (C) Section 101(f)(2)(B) of such Act (29 U.S.C. 
                1021(f)(2)(B)), as amended by this section, is 
                amended--
                            (i) by striking ``305(m)'' in clause 
                        (i)(II) and inserting ``305(n)'', and
                            (ii) by striking ``305(m)(8)'' in clause 
                        (ii)(II) and inserting ``305(n)(8)''.
                    (D) Section 103(f)(1)(B)(ii) of such Act (29 U.S.C. 
                1023(f)(1)(B)(ii)), as amended by this section, is 
                amended by striking ``305(m)(2)'' and inserting 
                ``305(n)(2)''.
    (f) Elections To Be in Critical or Endangered Status.--
            (1) In general.--Paragraph (6) of section 305(b) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1085(b)), as redesignated and amended by this section, is 
        further amended--
                    (A) by striking ``is not in critical status'' in 
                subparagraph (A) and inserting ``is not in critical or 
                declining status'',
                    (B) by striking ``but that is projected'' in 
                subparagraph (A) and inserting ``but--
                            ``(i) that is projected'',
                    (C) by striking ``5 plan years may, not later 
                than'' in subparagraph (A) and inserting ``5 plan 
                years, or
                            ``(ii) that is in endangered status and is 
                        not reasonably projected to be able to emerge 
                        from endangered status within the funding 
                        improvement period under the funding 
                        improvement plan in effect,
                may, not later than'', and
                    (D) by striking ``under paragraph (3)'' in 
                subparagraph (B) and inserting ``under paragraph (3) or 
                for endangered status under paragraph (2)''.
            (2) Election to be in endangered status.--Subsection (b) of 
        section 305 of such Act (29 U.S.C. 1085), as so redesignated 
        and amended, is further amended by adding at the end the 
        following new paragraph:
            ``(8) Election to be in endangered status.--Notwithstanding 
        paragraph (2)--
                    ``(A) the plan sponsor of a multiemployer plan that 
                is not in endangered, critical, or declining status for 
                a plan year but that is projected by the plan actuary, 
                pursuant to the determination under paragraph (5), to 
                be in endangered status in any of the 5 succeeding plan 
                years, may, not later than 30 days after the date of 
                the certification under paragraph (5)(A), elect to be 
                in endangered status effective for the current plan 
                year,
                    ``(B) the plan year in which the plan sponsor 
                elects to be in endangered status under subparagraph 
                (A) shall be treated for purposes of this section as 
                the first year in which the plan is in endangered 
                status, regardless of the date on which the plan first 
                satisfies the criteria for endangered status under 
                paragraph (2), and
                    ``(C) a plan that is in endangered status under 
                this paragraph shall not emerge from endangered status 
                unless the plan's actuary certifies under paragraph 
                (5)(A) that the plan is no longer in endangered status 
                and is not in critical or declining status.''.
    (g) Amendments Relating to Funding Improvement Plan.--
            (1) In general.--Paragraph (1) of section 305(d) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1085(d)), as redesignated and amended by this section, is 
        further amended--
                    (A) by striking the last sentence, and
                    (B) in subparagraph (B), by striking ``funding 
                improvement plan--'' and all that follows and inserting 
                ``funding improvement plan, shall provide to the 
                bargaining parties 1 or more schedules showing revised 
                benefit structures, revised contribution structures, or 
                both, which, if adopted, may reasonably be expected to 
                enable the multiemployer plan to meet the requirements 
                of paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                accrual rate as of the date of the 
                                enactment of the Chris Allen 
                                Multiemployer Pension Recapitalization 
                                and Reform Act of 2021) based on the 
                                contribution rate in effect as of the 
                                first day of the plan year in which the 
                                plan enters endangered status, and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.''.
            (2) Funding improvement plan.--Paragraph (3) of section 
        305(d) of such Act (29 U.S.C. 1085(d)), as so redesignated and 
        amended, is further amended--
                    (A) by striking ``For purposes of this section--'' 
                and all that follows through ``which consists of'' in 
                subparagraph (A) and inserting ``For purposes of this 
                section, a funding improvement plan is a plan which 
                consists of'', and
                    (B) by striking ``formulated to provide'' and all 
                that follows and inserting ``formulated, based on 
                reasonably anticipated experience and reasonable 
                actuarial assumptions, to--
                    ``(A) enable the plan to emerge from endangered 
                status by the end of the funding improvement period, 
                and
                    ``(B) avoid any accumulated funding deficiencies 
                during the funding improvement period (taking into 
                account any extension of amortization periods under 
                section 304(d)).''.
            (3) Funding improvement period.--Paragraph (4) of section 
        305(d) of such Act (29 U.S.C. 1085(d)(4)), as so redesignated 
        and amended, is further amended by striking subparagraph (B) 
        and inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) New period based on adverse experience.--
                            ``(i) In general.--If the plan's actuary 
                        determines necessary based on adverse plan 
                        experience, the plan sponsor may provide for a 
                        new 10-year period as of the first day of any 
                        plan year in the original funding improvement 
                        period, but only if the plan is still projected 
                        to meet the requirements of the funding 
                        improvement plan and emerge from endangered 
                        status at the end of the new funding 
                        improvement period.
                            ``(ii) Limitation.--A plan sponsor may 
                        provide a new 10-year period under clause (i) 
                        not more than 1 time in any 20-consecutive-year 
                        period, unless the plan sponsor submits to the 
                        Secretary an application for an additional new 
                        period. Such application shall include a 
                        certification that the plan is projected to 
                        emerge from endangered status in the proposed 
                        new 10-year period and a description of key 
                        assumptions, to be specified in regulations 
                        promulgated by the Secretary in consultation 
                        with the Pension Benefit Guaranty 
                        Corporation.''.
            (4) Conforming amendments.--
                    (A) Subparagraph (C) of section 305(d)(4) of such 
                Act (29 U.S.C. 1085(d)(4)), as so redesignated and 
                amended, is further amended--
                            (i) by striking ``critical status'' both 
                        places it appears in clauses (i) and (ii) and 
                        inserting ``critical or declining status'',
                            (ii) by striking ``rehabilitation period'' 
                        in clause (ii) and inserting ``rehabilitation 
                        or solvency attainment period'', and
                            (iii) by striking ``critical status'' in 
                        the heading of clause (ii) and inserting 
                        ``critical or declining status''.
                    (B) Subsection (d) of section 305 of such Act (29 
                U.S.C. 1085), as so redesignated and amended, is 
                further amended by striking paragraph (5) and by 
                redesignating paragraphs (6), (7), and (8) as 
                paragraphs (5), (6), and (7), respectively.
                    (C) Paragraph (6) of section 305(d) of such Act (29 
                U.S.C. 1085(d)), as so redesignated, is amended--
                            (i) by striking ``(1)(B)(i)(I)'' in 
                        subparagraph (A) and inserting ``(1)(B)(i)'', 
                        and
                            (ii) by striking ``paragraph (6)(B)'' in 
                        subparagraph (B)(ii) and inserting ``paragraph 
                        (5)(B)''.
                    (D) Paragraph (2) of section 305(d) of such Act (29 
                U.S.C. 1085(d)), as so redesignated, is amended by 
                inserting ``, except that the next update of the 
                funding improvement plan shall fulfill the requirement 
                of paragraph (1)(B)(i)'' after ``for a preceding plan 
                year''.
    (h) Amendments Relating to Rehabilitation Plan.--
            (1) In general.--Paragraph (1) of section 305(f) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1085(f)), as redesignated and amended by this section, is 
        further amended--
                    (A) by striking the last 2 sentences, and
                    (B) in subparagraph (B), by striking 
                ``rehabilitation plan--'' and all that follows and 
                inserting ``rehabilitation plan, shall provide to the 
                bargaining parties 1 or more schedules showing revised 
                benefit structures, revised contribution structures, or 
                both, which, if adopted, may reasonably be expected to 
                enable the multiemployer plan to meet the requirements 
                of paragraph (3), including--
                            ``(i) one default proposal under which--
                                    ``(I) all adjustable benefits in 
                                the form of early retirement subsidies 
                                (including early reduction factors 
                                which are not provided on an 
                                actuarially equivalent basis) under the 
                                plan are eliminated, and
                                    ``(II) the future monthly benefit 
                                accrual rate under the plan is reduced 
                                to the equivalent of 1 percent of 
                                annual contributions (or, if lower, the 
                                accrual rate as of the date of the 
                                enactment of the Chris Allen 
                                Multiemployer Pension Recapitalization 
                                and Reform Act of 2021) based on the 
                                contribution rate in effect as of the 
                                first day of the plan year in which the 
                                plan enters critical status, and
                        which may also include reduction or elimination 
                        of any other adjustable benefits under the 
                        plan, and
                            ``(ii) any additional schedules which 
                        reduce or eliminate adjustable benefits under 
                        the plan which the plan sponsor deems 
                        appropriate to provide as an alternative to the 
                        default proposal.
                In the case of a plan adopting a rehabilitation plan 
                described in paragraph (3)(A)(ii), no schedule provided 
                to or adopted by the bargaining parties shall provide 
                for a monthly benefit accrual rate in excess of the 
                rate described in subparagraph (B)(i)(II).''.
            (2) Rehabilitation plan.--
                    (A) In general.--Subparagraph (A) of section 
                305(f)(3) of such Act (29 U.S.C. 1085(f)(3)), as so 
                redesignated, is amended--
                            (i) by striking ``and may include'' and all 
                        that follows through ``such actions'' in clause 
                        (i),
                            (ii) by inserting ``, while delaying 
                        insolvency for as long as possible and 
                        maximizing the income of the plan, including 
                        income after insolvency'' before the period in 
                        clause (ii), and
                            (iii) by striking ``(1)(B)(i)'' in the last 
                        sentence and inserting ``(1)(B)''.
                    (B) Conforming amendments.--Clause (i) of section 
                305(f)(3)(C) of such Act (29 U.S.C. 1085(f)(3)(C)), as 
                so redesignated, is amended--
                            (i) by striking ``(1)(B)(i)'' in subclause 
                        (II) and inserting ``(1)(B)'', and
                            (ii) by striking ``the last sentence of 
                        paragraph (1)'' and inserting ``paragraph 
                        (1)(B)(i)''.
            (3) Rehabilitation period.--
                    (A) In general.--Subparagraph (A) of section 
                305(f)(4) of such Act (29 U.S.C. 1085(f)(4)), as so 
                redesignated and amended, is further amended--
                            (i) by striking ``The rehabilitation 
                        period'' and inserting ``Except as otherwise 
                        provided in this subparagraph, the 
                        rehabilitation period'', and
                            (ii) by adding at the end the following: 
                        ``If, upon exhaustion of all reasonable 
                        measures, the plan is not reasonably expected 
                        to emerge from critical status by the end of 
                        such 10-year period, the rehabilitation period 
                        shall be extended to take into account the 
                        projected date of emergence from critical 
                        status (if the rehabilitation plan remained in 
                        effect until such date) or the projected date 
                        of insolvency (if applicable) (unless the plan 
                        enters declining status).''.
                    (B) Emergence from critical status.--Subparagraph 
                (B) of section 305(f)(4) of such Act (29 U.S.C. 
                1085(f)(4)), as so redesignated and amended, is further 
                amended--
                            (i) by inserting ``and is not in declining 
                        status,'' after the comma in clause (i)(I),
                            (ii) by striking subclause (III) of clause 
                        (i) and inserting the following:
                                    ``(III) the plan's projected funded 
                                percentage as of the first day of the 
                                15th succeeding plan year is at least 
                                100 percent and is projected to 
                                increase after such date.'',
                            (iii) by striking ``that--'' and all that 
                        follows through ``regardless of whether'' in 
                        clause (ii)(I) and inserting ``that the plan 
                        meets the requirements of subclauses (II) and 
                        (III) of clause (i), regardless of whether'', 
                        and
                            (iv) by striking ``unless--'' and all that 
                        follows in clause (ii)(II) and inserting 
                        ``unless, as of such plan year, the plan fails 
                        to meet the requirements of subclause (II) or 
                        (III) of clause (i).''.
            (4) Rules relating to benefit increases during 
        rehabilitation period.--Subparagraph (B) of section 305(g)(1) 
        of such Act (29 U.S.C. 1085(g)(1)), as so redesignated and 
        amended, is further amended by striking ``unless'' and all that 
        follows and inserting ``unless the amendment is required as a 
        condition of qualification under part I of subchapter D of 
        chapter 1 of the Internal Revenue Code of 1986 or to comply 
        with other applicable law, or the amendment provides for only a 
        de minimis increase in the liabilities of the plan.''.
            (5) Conforming amendments.--
                    (A) Paragraph (6) of section 305(f) of such Act (29 
                U.S.C. 1085(f)), as so redesignated, is amended by 
                striking ``the last sentence of paragraph (1)'' and 
                inserting ``paragraph (1)(B)(i)''.
                    (B) Paragraph (2) of section 305(f) of such Act (29 
                U.S.C. 1085(f)), as so redesignated, is amended by 
                inserting ``, except that the next update of the 
                rehabilitation plan shall fulfill the requirement of 
                paragraph (1)(B)(i)'' after ``for a preceding plan 
                year''.
    (i) Actuarial Assumptions.--
            (1) In general.--Subsection (n) of section 305 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1085), as redesignated by subsections (a), (d), and (e), is 
        amended--
                    (A) by striking ``Method'' in the heading and 
                inserting ``Method and Assumptions'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(11) Actuarial assumptions.--
                    ``(A) In general.--The actuarial assumptions relied 
                upon for purposes of this section by a plan actuary 
                shall be individually reasonable and, in the aggregate, 
                shall be reasonable and (with the exception of 
                assumptions regarding future contributions) represent 
                the actuary's best estimate of future plan experience, 
                within limitations prescribed by the Secretary of the 
                Treasury. A plan actuary shall avoid conservatism or 
                optimism in individual assumptions to the extent that 
                they would result in a set of assumptions that is 
                unreasonable in the aggregate.
                    ``(B) Investment returns.--The investment return 
                assumption for projecting plan assets may differ from 
                the actuarial valuation interest rate. In selecting the 
                investment return assumption for projecting plan 
                assets, the plan actuary shall estimate the expected 
                return of the plan's investments as currently invested 
                and as expected to be invested in the future, 
                consistent with the plan's adopted investment policy, 
                if applicable. It is reasonable for an actuary to 
                expect that the plan's investment decisions will 
                consider risk, expected returns over time, and expected 
                future benefit payments. The investment return 
                assumption shall not exceed the interest rate used to 
                determine past service liability under section 
                431(b)(6).
                    ``(C) Contributions.--
                            ``(i) In general.--The plan actuary shall 
                        develop assumptions for the projection of 
                        future contributions, including assumptions 
                        regarding industry activity among contributing 
                        employers and contribution rates, based on 
                        information provided by the plan sponsor, which 
                        must act reasonably and in good faith. The plan 
                        actuary shall certify the reasonableness of all 
                        assumptions.
                            ``(ii) Projected industry activity.--Any 
                        projection of activity in the industry or 
                        industries covered by the plan, including 
                        future covered employment and contribution 
                        levels, shall be based on information provided 
                        by the plan sponsor acting reasonably and in 
                        good faith.
                            ``(iii) Future contribution base units.--
                                    ``(I) Declining contribution base 
                                units.--If recent experience of the 
                                plan has been declining contribution 
                                base units, the plan actuary may assume 
                                future contribution base units will 
                                continue to decline at the same 
                                annualized trend as over the 5 
                                immediately preceding plan years, 
                                unless the actuary determines that 
                                there have been significant changes 
                                that would make such assumption 
                                unreasonable.
                                    ``(II) Flat or increasing 
                                contribution base units.--If recent 
                                experience of the plan has been 
                                increasing, or neither increasing nor 
                                decreasing, contribution base units, 
                                the plan actuary may assume future 
                                contribution base units will remain 
                                unchanged indefinitely, unless the 
                                actuary determines that there have been 
                                significant changes that would make 
                                such assumption unreasonable.
                            ``(iv) Future contribution rates.--
                                    ``(I) In general.--Projections of 
                                contributions shall be based on the 
                                contribution rates consistent with the 
                                terms of collective bargaining and 
                                participation agreements currently in 
                                effect.
                                    ``(II) Future increases in 
                                accordance with correction plans.--If 
                                reasonable and applicable, the plan 
                                actuary may assume future increases in 
                                contribution rates consistent with the 
                                adopted funding improvement plan, 
                                rehabilitation plan, or solvency plan.
                                    ``(III) Additional factors.--
                                Information provided by the plan 
                                sponsor to the plan actuary in setting 
                                the assumption regarding future 
                                increases in contribution rates shall 
                                take into account the ability of the 
                                participating employers to make 
                                contributions at the scheduled rates 
                                over time, considering relevant factors 
                                such as projected industry activity, 
                                the financial strength of participating 
                                employers, market competition, and the 
                                scheduled contribution rate to the plan 
                                relative to the overall wage package.
                    ``(D) Assumptions for developing schedules.--All 
                schedules under any funding improvement plan, 
                rehabilitation plan, or solvency plan must be developed 
                based on the same set of actuarial assumptions unless 
                it would be unreasonable to do so, taking into account 
                the anticipated impact of the schedules on participant 
                behavior and employer participation.''.
            (2) Additions to form 5500 schedule mb.--Subparagraph (B) 
        of section 305(b)(5) of such Act (29 U.S.C. 1085(b)(5)), as 
        redesignated and amended by this section, is further amended by 
        adding at the end the following new clause:
                            ``(vi) Additional attachments.--The plan 
                        actuary shall attach to the certification 
                        required under subparagraph (A)--
                                    ``(I) documentation supporting the 
                                certification of status under 
                                subparagraph (A)(i), including 
                                projections of the funding standard 
                                account, funded percentage, and 
                                solvency of the plan,
                                    ``(II) a clear description of the 
                                key assumptions used in performing the 
                                projections, including investment 
                                returns, contribution base units, and 
                                contribution rates,
                                    ``(III) a 5-year history of 
                                contributions, including contribution 
                                base units, average contribution rates, 
                                and withdrawal liability payments, and 
                                a comparison of such contribution base 
                                units, rates, and payments to 
                                projections made by the plan, and
                                    ``(IV) an alternate projection of 
                                the funding standard account, funded 
                                percentage, and solvency, based on the 
                                following assumptions:
                                            ``(aa) Annual future 
                                        investment returns on plan 
                                        assets equal the actuarial 
                                        interest rate assumption minus 
                                        1 percent.
                                            ``(bb) Future contribution 
                                        base units projected using a 
                                        trend equal to the lesser of--

                                                    ``(AA) the 
                                                annualized trend of 
                                                actual contribution 
                                                base units over the 5 
                                                preceding plan years, 
                                                and

                                                    ``(BB) no change in 
                                                future contribution 
                                                base units.

                                            ``(cc) No increases in 
                                        future contribution rates 
                                        beyond those consistent with 
                                        the collective bargaining 
                                        agreements and participation 
                                        agreements in effect for the 
                                        plan year.
                                            ``(dd) The withdrawal from 
                                        the plan of the employer which 
                                        has contributed the greatest 
                                        total amount of contributions 
                                        over the 5 preceding plan 
                                        years, if such employer has 
                                        contributed at least 10 percent 
                                        of the total contributions to 
                                        the plan over such 5 plan years 
                                        and such employer has a below 
                                        investment grade credit rating 
                                        (but only if obtaining the 
                                        credit rating of such employer 
                                        is not an undue burden).
                                            ``(ee) If such credit 
                                        rating cannot be obtained 
                                        without undue burden, the 
                                        withdrawal of the employer 
                                        which has contributed the 
                                        greatest total amount of 
                                        contributions over the 5 
                                        preceding plan years, if such 
                                        employer has contributed at 
                                        least 10 percent of the total 
                                        contributions to the plan over 
                                        such 5 plan years without 
                                        regard to collection of any 
                                        withdrawal liability.
                                            ``(ff) If no employer has 
                                        contributed at least 10 percent 
                                        of the total contributions to 
                                        the plan over the 5 preceding 
                                        plan years, the withdrawal of 
                                        the employer which contributed 
                                        the greatest total amount of 
                                        contributions for the current 
                                        plan year, without regard to 
                                        collection of any withdrawal 
                                        liability, unless the employer 
                                        contributed less than 1 percent 
                                        of the total contributions to 
                                        the plan for such plan year.
                                            ``(gg) Other assumptions 
                                        consistent with the projection 
                                        based on the actuary's best 
                                        estimate assumptions.''.
            (3) Conforming amendments.--
                    (A) Section 305(b)(5)(B)(i) of such Act (29 U.S.C. 
                1085(b)(5)(B)(i)), as redesignated by this section, is 
                amended by striking ``assumptions'' and inserting 
                ``assumptions meeting the requirements of subsection 
                (n)(11)''.
                    (B) Section 305(b)(5)(A)(vi) of such Act (29 U.S.C. 
                1085(b)(5)(A)(vi), as amended by this section and 
                section 321, is further amended by striking 
                ``reasonable actuarial assumptions'' and inserting 
                ``assumptions meeting the requirements of subsection 
                (n)(11)''.
                    (C) Paragraph (3) of section 305(d) of such Act (29 
                U.S.C. 1085(d)), as amended by subsection (g), is 
                further amended by striking ``reasonable actuarial 
                assumptions'' and inserting ``assumptions meeting the 
                requirements of subsection (n)(11)''.
                    (D) Clause (i) of section 305(f)(3)(A) of such Act 
                (29 U.S.C. 1085(f)(3)(A)), as amended by subsection 
                (h), is further amended by striking ``reasonable 
                actuarial assumptions'' and inserting ``assumptions 
                meeting the requirements of subsection (n)(11)''.
                    (E) Section 305(h)(3) of such Act (29 U.S.C. 
                1085(h)(3)), as added by subsection (d), is amended by 
                striking ``reasonable actuarial assumptions'' and 
                inserting ``assumptions meeting the requirements of 
                subsection (n)(11)''.
    (j) Conforming Amendments Relating to Premiums.--Paragraph (10) of 
section 4006(a) of such Act (29 U.S.C. 1306(a)), as added by this Act, 
is amended--
            (1) by striking ``305(b)(7)'' in subparagraph (B)(iii) 
        thereof and inserting ``305(b)(4)'',
            (2) by striking ``critical and declining'' in subparagraph 
        (B)(iii) thereof and inserting ``declining'', and
            (3) by striking ``305(f)(9)'' in subparagraph (C) and 
        inserting ``305(h)(8)''.
    (k) Conforming Amendments Relating to Composite and Legacy Plans.--
            (1) Sections 203(a)(3)(E)(ii), 204(b)(1)(B)(i), 
        204(b)(1)(H)(v), and 204(g)(1) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1053(a)(3)(E)(ii), 
        1054(b)(1)(B)(i), 1054(b)(1)(H)(v), and 1054(g)(1)), as amended 
        by title V, are each further amended by striking ``305(f)'' 
        each place it appears and inserting ``305(h)(8)''.
            (2) Sections 304(b)(10), 805(d)(2)(D), and 805(d)(4) of 
        such Act, as added by title V, are each amended by striking 
        ``endangered or critical'' and inserting ``endangered, 
        critical, or declining''.
            (3) Section 801(b)(1) of such Act, as so added, is amended 
        by striking ``endangered or critical'' both places it appears 
        and inserting ``endangered, critical, or declining''.
            (4) Sections 801(b)(1), 801(b)(5)(B), 805(b)(1)(A), and 
        805(e)(3) of such Act, as so added, are each amended by 
        striking ``305(b)(4)'' and inserting ``305(b)(5)''.
            (5) Sections 801(b)(5)(B) and 805(b)(1)(A) of such Act, as 
        so added, are each amended by striking ``endangered or 
        critical'' and inserting ``endangered, critical, or 
        declining''.
            (6) Section 802(b)(1) of such Act, as so added, is amended 
        by striking ``and'' at the end of subparagraph (B), by striking 
        the period at the end of subparagraph (C) and inserting ``; 
        and'', and by adding at the end the following new subparagraph:
                    ``(D) consistent with the principles of 
                subparagraphs (B), (C), and (D) of section 
                305(n)(11).''.
            (7) Sections 802(b)(5) and 805(d)(2)(A) of such Act, as so 
        added, are each amended by striking ``305(b)(4)(B)'' and 
        inserting ``305(b)(5)(B)''.
            (8) Section 803(a)(2)(D) of such Act, as so added, is 
        amended by striking ``305(f)(9)(D)(vi)'' and inserting 
        ``305(h)(8)(D)(vi)''.
            (9) Section 803(a)(3) of such Act, as so added, is amended 
        by striking ``305(f)(8)'' and inserting ``305(m)(1)(D)''.
            (10) Section 805(d)(2)(D) of such Act, as so added and 
        amended, is further amended by striking ``funding improvement 
        or rehabilitation plan'' and inserting ``funding improvement, 
        rehabilitation, or solvency plan''.
    (l) Additional Conforming Amendments.--
            (1) Section 502(c) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1132(c)) is amended--
                    (A) in paragraph (7)(B), as added by section 322, 
                by striking ``305(b)(4)(D)'' and inserting 
                ``305(b)(5)(D)'', and
                    (B) in paragraph (14), as so added and as 
                redesignated by section 501--
                            (i) by striking ``305(b)(4)(D)'' in 
                        subparagraph (A) and inserting 
                        ``305(b)(5)(D)'', and
                            (ii) by striking ``305(b)(4)'' in 
                        subparagraph (B) and inserting ``305(b)(5)''.
            (2) Section 4003(g) of such Act (29 U.S.C. 1303(g)), as 
        added by section 321, is amended by striking ``section 
        305(b)(4)(A)'' and inserting ``section 305(b)(5)(A)''.
            (3) Section 4042(b)(2)(B)(i) of such Act (29 U.S.C. 
        1342(b)(2)(B)), as added by section 301, is amended--
                    (A) by striking ``critical and declining'' and 
                inserting ``declining'', and
                    (B) by striking ``(7)'' and inserting ``(4)''.
    (m) Effective Date.--Except as otherwise provided in subsection 
(a)(7), the amendments made by this section shall apply to plan years 
beginning after December 31, 2021.
    (n) Credit Ratings.--No requirement of section 939 or 939A of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (124 Stat. 
1887; 15 U.S.C. 78o-7 note) shall apply with respect to the amendment 
made by subsection (i)(2).

SEC. 213. TRANSITION RULES.

    (a) Plans in Endangered Status.--
            (1) In general.--In the case of a multiemployer plan which 
        is in endangered status as of the date of the enactment of this 
        Act, and is on schedule as of such date to meet the applicable 
        benchmarks in accordance with the plan's funding improvement 
        plan--
                    (A) Election to apply law before amendment.--The 
                plan sponsor may elect to remain in endangered status 
                and to apply section 432 of the Internal Revenue Code 
                of 1986 and section 305 of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1085) as in 
                effect before January 1, 2022, to the plan, but only if 
                the plan continues to meet such applicable benchmarks.
                    (B) Transitional effective date.--If the plan 
                sponsor does not make the election under paragraph 
                (1)--
                            (i) section 432 of such Code and section 
                        305 of such Act as in effect on January 1, 
                        2022, shall apply to such plan as of the first 
                        day of the first plan year beginning after 
                        December 31, 2021, and
                            (ii) section 432(d)(1)(B)(i)(II) of such 
                        Code and section 305(d)(1)(B)(i)(II) of such 
                        Act, as amended by sections 211(g) and 212(g), 
                        respectively, shall each apply to such plan by 
                        substituting ``the date of the enactment of the 
                        Chris Allen Multiemployer Pension 
                        Recapitalization and Reform Act of 2021'' for 
                        ``the first day of the plan year in which the 
                        plan enters endangered status''.
                In the case of any plan with respect to which the plan 
                sponsor makes the election under subparagraph (A) but 
                which fails to continue to meet the applicable 
                benchmarks under the funding improvement plan, this 
                subparagraph shall apply to such plan by substituting 
                ``the plan year after the first plan year for which the 
                plan fails to meet the applicable benchmarks'' for 
                ``the first plan year beginning after December 31, 
                2021''.
            (2) Plans entering endangered status between enactment and 
        january 1, 2022.--In the case of a multiemployer plan which 
        enters endangered status after the date of the enactment of 
        this Act and before January 1, 2022--
                    (A) section 432 of such Code and section 305 of 
                such Act as in effect on January 1, 2022, shall apply 
                to such plan as if already in effect, and
                    (B) section 432(d)(1)(B)(i)(II) of such Code and 
                section 305(d)(1)(B)(i)(II) of such Act, as amended by 
                sections 211(g) and 212(g), respectively, shall each 
                apply to such plan by substituting ``the date of the 
                enactment of the Chris Allen Multiemployer Pension 
                Recapitalization and Reform Act of 2021'' for ``the 
                first day of the plan year in which the plan enters 
                endangered status''.
    (b) Plans in Critical or Critical and Declining Status.--
            (1) In general.--In the case of a qualified critical 
        multiemployer plan--
                    (A) Election to apply law before amendment.--The 
                plan sponsor may elect to remain in critical or 
                critical and declining status and to apply section 432 
                of the Internal Revenue Code of 1986 and section 305 of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1085) as in effect before January 1, 2022, to 
                the plan, but only if the plan continues to make 
                scheduled progress under the plan's rehabilitation 
                plan.
                    (B) Transitional effective date.--If the plan 
                sponsor does not make the election under paragraph 
                (1)--
                            (i) section 432 of such Code and section 
                        305 of such Act as in effect on January 1, 
                        2022, shall apply to such plan as of the first 
                        day of the first plan year beginning after 
                        December 31, 2021,
                            (ii) section 432(f)(1)(B)(i)(II) of such 
                        Code and section 305(f)(1)(B)(i)(II) of such 
                        Act, as amended by sections 211(h) and 212(h), 
                        respectively, shall each apply to such plan by 
                        substituting ``the date of the enactment of the 
                        Chris Allen Multiemployer Pension 
                        Recapitalization and Reform Act of 2021'' for 
                        ``the first day of the plan year in which the 
                        plan enters critical status'', and
                            (iii) section 432(h)(1)(B)(i)(II) of such 
                        Code and section 305(h)(1)(B)(i)(II) of such 
                        Act, as amended by sections 211(d)(3) and 
                        212(d)(3), respectively, shall each apply to 
                        such plan by substituting ``the date of the 
                        enactment of the Chris Allen Multiemployer 
                        Pension Recapitalization and Reform Act of 
                        2021'' for ``the first day of the plan year in 
                        which the plan enters declining status''.
                In the case of any plan with respect to which the plan 
                sponsor makes the election under subparagraph (A) but 
                which fails to continue to make scheduled progress 
                under the rehabilitation plan, this subparagraph shall 
                apply to such plan by substituting ``the plan year 
                after the first plan year for which the plan fails to 
                make scheduled progress under the rehabilitation plan'' 
                for ``the first plan year beginning after December 31, 
                2021''.
                    (C) Application of premium amendments.--A plan with 
                respect to which the plan sponsor makes the election 
                under subparagraph (A) shall be treated as described in 
                clause (iii) of section 4006(a)(10)(B) of the Employee 
                Retirement Income Security Act of 1974 until such time 
                as the plan emerges from critical and declining status 
                pursuant to section 432 of such Code and section 305 of 
                such Act as in effect before January 1, 2022.
            (2) Plans entering critical or critical and declining 
        status between enactment and january 1, 2022.--In the case of a 
        multiemployer plan which enters critical or critical and 
        declining status after the date of the enactment of this Act 
        and before January 1, 2022--
                    (A) section 432 of such Code and section 305 of 
                such Act as in effect on January 1, 2022, shall apply 
                to such plan as if already in effect,
                    (B) section 432(f)(1)(B)(i)(II) of such Code and 
                section 305(f)(1)(B)(i)(II) of such Act, as amended by 
                sections 211(h) and 212(h), respectively, shall each 
                apply to such plan by substituting ``the date of the 
                enactment of the Chris Allen Multiemployer Pension 
                Recapitalization and Reform Act of 2021'' for ``the 
                first day of the plan year in which the plan enters 
                critical status'', and
                    (C) section 432(h)(1)(B)(i)(II) of such Code and 
                section 305(h)(1)(B)(i)(II) of such Act, as amended by 
                sections 211(d)(3) and 212(d)(3), respectively, shall 
                each apply to such plan by substituting ``the date of 
                the enactment of the Chris Allen Multiemployer Pension 
                Recapitalization and Reform Act of 2021'' for ``the 
                first day of the plan year in which the plan enters 
                declining status''.
            (3) Qualified critical multiemployer plan.--For purposes of 
        this subsection, the term ``qualified critical multiemployer 
        plan'' means a multiemployer plan which is in critical or 
        critical and declining status as of the date of the enactment 
        of this Act, and is making scheduled progress under the plan's 
        rehabilitation plan, but only if the rehabilitation plan (as in 
        effect without regard to the amendments made by this Act) 
        targets emergence from critical status not later than 3 years 
        after the end of the rehabilitation period as in effect with 
        respect to such plan on the date of the enactment of this Act.
    (c) Election.--
            (1) In general.--An election under subsection (a)(1)(A) or 
        (b)(1)(A) shall be made--
                    (A) by notice to the Secretary of the Treasury and 
                the Pension Benefit Guaranty Corporation, in such 
                manner as the Secretary of the Treasury may prescribe, 
                and
                    (B) not later than the due date for the notice of 
                endangered status or critical status for the first plan 
                year beginning after December 31, 2021.
            (2) Periods after election.--After making a timely election 
        under paragraph (1)--
                    (A) the plan sponsor shall annually review and 
                update (if necessary) the plan's funding improvement 
                plan or rehabilitation plan, and
                    (B) the plan actuary shall certify annually whether 
                the plan is making scheduled progress under the funding 
                improvement plan or rehabilitation plan.
    (d) Definitions.--Any term used in this section which is also used 
in section 432 of the Internal Revenue Code of 1986 or section 305 of 
the Employee Retirement Income Security Act of 1974 (before or after 
the amendments made by this Act) shall have the same meaning as when 
used in such sections.

              PART II--PROVISIONS RELATING TO PLAN MERGERS

SEC. 221. PROVISIONS RELATING TO PLAN MERGERS AND CONSOLIDATIONS.

    (a) In General.--Section 4231(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1411(c)) is amended--
            (1) by striking ``section 406(a) or section 406(b)(2)'' and 
        inserting ``section 404, 406(a), or 406(b)(2)'', and
            (2) by adding at the end the following: ``The corporation 
        shall prescribe safe harbor provisions whereby a merger of 
        multiemployer plans or the transfer of assets or liabilities 
        between multiemployer plans, where one of the plans is in 
        critical and declining status pursuant to section 305 and one 
        is in stable or unrestricted status pursuant to such section, 
        shall be deemed to satisfy the requirements of this section. 
        Notwithstanding the preceding sentences, the implementation of 
        such merger or transfer shall be subject to the rules of 
        section 404.''.
    (b) Calculation of Withdrawal Liability.--
            (1) In general.--Section 4231 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1411) is amended by 
        adding at the end the following new subsection:
    ``(f) Calculation of Withdrawal Liability Post-Merger.--The 
corporation shall prescribe the methods and conditions under which 
employers contributing to plans which are in stable or unrestricted 
status under section 305 when such plan merges with a plan in declining 
status under such section will not be allocated the unfunded vested 
benefits of the plan in declining status (as determined immediately 
before the merger).''.
            (2) Effective date.--The amendment made by this section 
        shall apply to plan mergers after December 31, 2021.

SEC. 222. CLARIFICATION OF PBGC FINANCIAL ASSISTANCE FOR PLAN MERGERS 
              AND PARTITIONS.

    (a) In General.--Paragraph (2) of section 4231(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1411(e)) is amended--
            (1) by striking the semicolon in subparagraph (B)(ii) and 
        inserting ``, determined solely with respect to the liabilities 
        and assets of the plan which was in critical and declining 
        status prior to the merger; and''; and
            (2) by striking subparagraph (C) and redesignating 
        subparagraph (D) as subparagraph (C).
    (b) Partitions.--Section 4233(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1413(b)) is amended by striking 
paragraph (4), by adding ``and'' at the end of paragraph (3)(B), and by 
redesignating paragraph (5) as paragraph (4).
    (c) Conforming Amendment Relating to Status Changes.--Section 
4231(e)(2)(B)(ii) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1411(e)(2)(B)(ii)), as amended by subsection (a), is 
further amended by striking ``critical and declining'' and inserting 
``declining''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to plan mergers and partitions taking effect 
        after the date of the enactment of this Act.
            (2) Conforming amendment.--The amendment made by subsection 
        (c) shall apply to plan mergers taking effect in plan years 
        beginning after December 31, 2021.

SEC. 223. RESTORATION NOT REQUIRED FOR CERTAIN MERGERS.

    (a) Amendment of Internal Revenue Code of 1986.--Clause (ii) of 
section 432(f)(9)(C) of the Internal Revenue Code of 1986, as 
redesignated by section 211(a) and as in effect before the amendments 
made by section 211 other than subsection (a) thereof, is amended by 
adding at the end the following flush language:
                        ``If, during the period of the benefit 
                        suspension, the plan merges with a plan which 
                        is in stable or unrestricted status, nothing in 
                        this clause shall be construed to require the 
                        plan formed by the merger to restore the 
                        suspension of benefits.''.
    (b) Amendment of ERISA.--Clause (ii) of section 305(f)(9)(C) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1085(f)(9)(C)), as redesignated by section 212(a) and as in effect 
before the amendments made by section 212 other than subsection (a) 
thereof, is amended by adding at the end the following flush language:
                        ``If, during the period of the benefit 
                        suspension, the plan merges with a plan which 
                        is in stable or unrestricted status, nothing in 
                        this clause shall be construed to require the 
                        plan formed by the merger to restore the 
                        suspension of benefits.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to plan mergers taking effect after the date of the 
enactment of this Act.

                 PART III--WITHDRAWAL LIABILITY REFORM

SEC. 231. WITHDRAWAL LIABILITY REFORM.

    (a) Withdrawal Liability Definition.--Section 4201(b)(1) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381(b)(1)) 
is amended to read as follows:
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--The withdrawal liability of an 
                employer to a plan is the applicable amount determined 
                under subparagraph (B), adjusted--
                            ``(i) first, in the case of a partial 
                        withdrawal, in accordance with section 4206;
                            ``(ii) second, by any de minimis reduction 
                        applicable under section 4209; and
                            ``(iii) third, in accordance with section 
                        4225.
                    ``(B) Applicable amount.--The applicable amount 
                determined under this subparagraph is the lesser of--
                            ``(i) the amount determined under section 
                        4211 to be the allocable amount of unfunded 
                        vested benefits; or
                            ``(ii) the present value of a series of 20 
                        equal annual payments in the amount determined 
                        with respect to the employer under section 
                        4219(c)(1)(C).
                In the case of an employer withdrawing from a 
                multiemployer plan described in subparagraph (C), 
                clause (i) shall be applied by substituting `25' for 
                `20'.
                    ``(C) Plans for which 25 payments required.--
                            ``(i) In general.--A multiemployer plan is 
                        described in this subparagraph if the plan--
                                    ``(I) is certified to be in 
                                declining status (or, for plan years 
                                prior to 2022, in critical or declining 
                                status) for the plan year in which the 
                                employer's withdrawal occurs; or
                                    ``(II) terminates as described in 
                                section 4041A(a) or 4042.
                            ``(ii) Special rule for terminations.--
                        Clause (i)(II) shall apply to each employer who 
                        withdraws from a plan during a period of 3 
                        consecutive plan years that includes the 
                        withdrawal of every employer from the plan, or 
                        the cessation of the obligation of all 
                        employers to contribute under the plan, as 
                        described in section 4041A(a)(2). For purposes 
                        of this clause, withdrawal by an employer from 
                        a plan, during a period of 3 consecutive plan 
                        years within which substantially all the 
                        employers who have an obligation to contribute 
                        under the plan withdraw, shall be presumed to 
                        be a withdrawal pursuant to an agreement or 
                        arrangement, unless the employer proves 
                        otherwise by a preponderance of the evidence.
                    ``(D) Present value.--For purposes of subparagraph 
                (B)(ii), the present value of the annual payments shall 
                be determined based on the assumptions used for the 
                most recent actuarial valuation for the plan used to 
                determine unfunded past service liability for funding 
                purposes.''.
    (b) De Minimis Rule.--Section 4209 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1389) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``unfunded vested benefits allocable under 
                section 4211 to'' and inserting ``applicable amount 
                determined under section 4201(b)(1)(B) with respect 
                to'';
                    (B) in paragraph (2), by striking ``$50,000'' and 
                inserting ``$100,000''; and
                    (C) in the flush text following paragraph (2)--
                            (i) by striking ``the unfunded vested 
                        benefits'' and inserting ``such applicable 
                        amount''; and
                            (ii) by striking ``$100,000'' and inserting 
                        ``$200,000'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``amount determined under section 4211'' and 
                inserting ``applicable amount determined under section 
                4201(b)(1)(B) with respect to an employer'';
                    (B) in paragraph (2)(B), by striking ``$100,000'' 
                and inserting ``$250,000''; and
                    (C) in the flush text at the end--
                            (i) by striking ``the amount determined 
                        under section 4211 for'' and inserting ``such 
                        applicable amount with respect to''; and
                            (ii) by striking ``$150,000'' and inserting 
                        ``$500,000''.
    (c) Payment of Withdrawal Liability.--Section 4219(c)(1) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1399(c)(1)) 
is amended--
            (1) by striking so much of paragraph (1) as precedes 
        subparagraph (C) and inserting:
    ``(1)(A)(i) Subject to subparagraph (B), an employer shall pay its 
liability determined under section 4201(b)(1) in level annual payments 
determined under subparagraph (C) over the applicable period of years 
determined under clause (ii), calculated as if the first payment were 
made on the first day of the plan year following the plan year in which 
the withdrawal occurs and as if each subsequent payment were made on 
the first day of each subsequent plan year. Actual payment shall 
commence in accordance with paragraph (2).
    ``(ii) For purposes of clause (i), if the applicable amount used 
under section 4201(b)(1)(A) is the amount determined--
            ``(I) under section 4201(b)(1)(B)(i), the applicable period 
        of years is the period of years necessary to amortize such 
        amount in level annual payments determined under subparagraph 
        (C), or
            ``(II) under section 4201(b)(1)(B)(ii), the applicable 
        period of years is 20 years (25 years if the plan is described 
        in section 4201(b)(1)(C)).
    ``(iii) For purposes of clause (ii)(I), the determination of the 
amortization period described in clause (i) shall be based on the 
assumptions used for the most recent actuarial valuation for the plan 
to determine unfunded past service liability for funding purposes.
    ``(B)(i) If any adjustment is required to the withdrawal liability 
amount by reason of clause (i), (ii), or (iii) of section 
4210(b)(1)(A), modifications shall be made under subparagraph (A) to 
reflect such adjustments in accordance with this subparagraph and in 
such manner as the corporation shall provide.
    ``(ii) In the case of a partial withdrawal described in section 
4205(a), the amount of each annual payment shall be the product of--
            ``(I) the amount determined under subparagraph (C) 
        (determined without regard to this subparagraph), multiplied by
            ``(II) the fraction determined under section 4206(a)(2).
    ``(iii) In the case of a de minimis reduction under section 4209, 
the period of years described in subparagraph (A)(ii)(I) shall be 
adjusted so that the withdrawal liability amount, as reduced under such 
section, is amortized in level annual payments determined under 
subparagraph (C).'';
            (2) in subparagraph (C)--
                    (A) in clause (i)(I)--
                            (i) by striking ``3'' and inserting ``5''; 
                        and
                            (ii) by striking ``10'' and inserting 
                        ``20''; and
                    (B) by striking clause (iii); and
            (3) by striking subparagraphs (D) and (E) and inserting the 
        following:
    ``(D)(i) In the case of a subsequent partial withdrawal or a 
complete withdrawal that was preceded by one or more partial 
withdrawals, the amount of the annual payment with respect to the 
subsequent partial withdrawal or complete withdrawal shall be reduced 
by the amounts of the payments determined under subparagraph (B)(ii) 
with respect to each of the preceding partial withdrawals.
    ``(ii) The amount of any reductions described in clause (i) shall 
be phased out consistent with the method and period of time being used 
by the plan to allocate unfunded vested benefits under section 4211.
    ``(iii) The corporation may prescribe regulations as may be 
necessary to provide for proper adjustments in the reduction in the 
payment amount under clauses (i) and (ii).''.
    (d) Amendment of Plan.--Section 4211(c)(1) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1391(c)(1)) is 
amended--
            (1) by inserting ``(A)'' after ``(c)(1)'',
            (2) by striking ``(b) or (d). A plan'' and inserting ``(b) 
        or (d).
    ``(B) A multiemployer plan'', and
            (3) by striking ``, to the extent provided'' and all that 
        follows and inserting ``to provide--
            ``(i) that the amount of the unfunded vested benefits 
        allocable to an employer that withdraws from the plan is an 
        amount determined under paragraph (5) of this subsection, 
        rather than under subsection (b), or
            ``(ii) to the extent provided in regulations prescribed by 
        the corporation, that the amount of the unfunded vested 
        benefits allocable to an employer not described in section 
        4203(b)(1)(A) shall be determined in a manner different from 
        that provided in subsection (b).''.

     TITLE III--PLAN GOVERNANCE, DISCLOSURE, AND OTHER REFORMS FOR 
              MULTIEMPLOYER DEFINED BENEFIT PENSION PLANS

   Subtitle A--Plan Governance and Operations for Multiemployer Plans

SEC. 301. INDEPENDENT TRUSTEES.

    Section 4042 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1342) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``a plan'' and inserting ``a single-employer 
                or multiemployer plan'';
                    (B) in paragraph (3)--
                            (i) by inserting ``with respect to a 
                        single-employer plan'' before the comma; and
                            (ii) by striking ``or'';
                    (C) in paragraph (4), by striking the period at the 
                end and inserting ``, or''; and
                    (D) by inserting after paragraph (4) the following:
            ``(5) in the case of a multiemployer plan--
                    ``(A) such plan is an eligible multiemployer plan 
                as defined in section 4233A which fails to apply for a 
                special partition under such section, or
                    ``(B) termination of the plan would protect the 
                interests of participants and beneficiaries.'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``or remove'' 
                                after ``appoint'',
                                    (II) by inserting ``or removal'' 
                                after ``appointment'', and
                                    (III) by striking ``and'' at the 
                                end;
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) upon the petition of the corporation, the 
                appropriate United States district court shall appoint 
                a trustee proposed by the corporation for--
                            ``(i) any multiemployer plan which is in 
                        critical status or critical and declining 
                        status (as defined in paragraph (3) or (7), 
                        respectively, of section 305(b)), if the court 
                        finds the appointment of the trustee would help 
                        prevent an abuse of the multiemployer insurance 
                        program or any unreasonable increase in the 
                        liability of the fund, and
                            ``(ii) any multiemployer plan which has 
                        terminated under section 4041A(a), unless a 
                        party opposing appointment of a trustee shows 
                        that such appointment would be materially 
                        adverse to the interests of the plan 
                        participants and beneficiaries in the 
                        aggregate, and''; and
                            (iii) by adding at the end the following:
                    ``(C) in the case of a special partition of a plan 
                under section 4233A, the corporation may remove and 
                appoint trustees subject to the provisions of paragraph 
                (5).''; and
                    (B) by adding at the end the following:
    ``(4)(A) A trustee appointed to a multiemployer plan under 
paragraph (2)(B), (2)(C), or (3) shall report plan activity to the 
corporation, in the form and manner provided for in the judicial or 
administrative order or agreement appointing the trustee. A trustee so 
appointed may remain a trustee engaged in the ongoing governance of a 
multiemployer plan whether or not the corporation initiates plan 
termination proceedings under subsection (c).
    ``(B) Notwithstanding plan or trust documents to the contrary, in 
addition to any powers described in subsection (d), the order or 
agreement appointing a trustee under paragraph (2)(B), (2)(C), or (3) 
may include authority for the corporation to monitor and oversee plan 
activity and to review and approve trustee decisions related to funding 
or financial activities of the plan.
    ``(5)(A) The corporation may remove any trustees of an original 
plan that received a special partition under section 4233A if the 
corporation determines that the actions of such trustees unreasonably 
increased the risk of loss to participants in the plan or to the 
corporation, and may appoint 1 or more new trustees as replacements.
    ``(B) The corporation may appoint a special master, which may be an 
employee of the corporation, the duties of whom shall be disclosed to 
participants and contributing employers in accordance with regulations 
to be issued by the corporation, with respect to each original plan, as 
defined in section 4233A. Such special master shall be invited to every 
meeting of the plan's board of trustees or any committees thereof; 
shall be furnished any requested actuarial or financial information by 
the plan or agents thereof; shall receive all creditable complaints or 
other information from participants, beneficiaries, employers, plan 
employees and contractors, and any other person regarding the plan's 
operations; and shall furnish the corporation with semiannual reports 
of the board's activities, the plan's performance, and the potential 
liabilities of the corporation with respect to the plan. The trustees 
shall provide the special master with not less than 30 days notice 
prior to taking any action that could increase the risk of loss to the 
corporation, and the special master shall report such potential action 
to the corporation within 5 days of receiving such notice from the 
trustees.'';
            (3) in subsection (c)(1)--
                    (A) in the second sentence, by striking 
                ``subsection (b)'' and inserting ``subsection (b)(1)''; 
                and
                    (B) in the third sentence, by inserting ``, 
                including, in the case of a multiemployer plan, by 
                requiring the withdrawal of employers'' before the 
                period; and
            (4) in subsection (d)(1)--
                    (A) in subparagraph (A), by striking ``subsection 
                (b)'' in the second sentence and inserting ``subsection 
                (b)(1)''; and
                    (B) in subparagraph (B), by striking ``If'' and 
                inserting ``If a trustee is appointed under paragraph 
                (2) or (3) of subsection (b), or if''.

SEC. 302. INVESTIGATORY AUTHORITY.

    Section 4003(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1303(a)) is amended to read as follows:
    ``(a)(1) The corporation may, in its discretion, investigate any 
facts, conditions, practices, or matters as the corporation determines 
necessary or proper to aid in--
            ``(A) the enforcement of any provision of this title or any 
        rule or regulation thereunder;
            ``(B) the prescribing of rules and regulations under this 
        title; or
            ``(C) evaluating the corporation's liability or potential 
        liability with respect to a plan.
    ``(2) Any information or documentary material submitted to the 
corporation pursuant to this section, if clearly designated by the 
person making the submission as confidential (on each page in the case 
of a document, and in the file name in the case of a digital file), 
shall be exempt from disclosure under section 552 of title 5, United 
States Code, and no such information or documentary material may be 
made public, except as may be relevant to any administrative or 
judicial action or proceeding, including an informal rulemaking.
    ``(3) The corporation may require or permit any person to submit a 
statement in writing, under oath or otherwise as the corporation 
determines, as to all facts and circumstances concerning the matter to 
be investigated.
    ``(4) The corporation shall annually audit a statistically 
significant number of plans terminating under section 4041(b) to 
determine whether participants and beneficiaries have received their 
benefit commitments and whether section 4050(a) has been satisfied. 
Each audit shall include a statistically significant number of 
participants and beneficiaries.''.

SEC. 303. CONDITIONS ON FINANCIAL ASSISTANCE.

    (a) In General.--Section 4261(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431(b)) is amended--
            (1) in paragraph (1), by striking the period at the end and 
        inserting ``, or to prevent an abuse of the multiemployer 
        insurance program or any unreasonable increase in the liability 
        of the fund. The corporation shall provide the plan sponsor 
        written notice of each condition on financial assistance and a 
        written explanation of its determination. If the sponsor fails 
        to satisfy timely a condition on financial assistance, the 
        corporation may withhold financial assistance until the 
        condition is satisfied.''; and
            (2) by adding at the end the following:
    ``(3) The conditions described in paragraph (1) may include an 
offset for the guaranteed benefits of a participant whose benefit in 
excess of the benefit guaranteed under this title is provided by 
another plan, or in the case of a plan that has not yet terminated, the 
cessation of future accruals or a requirement that contribution amounts 
or annual withdrawal liability payment amounts under section 4219 be 
maintained as if the employer had withdrawn on the date of 
insolvency.''.
    (b) Conforming Amendment.--Section 4261(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1431(a)) is amended 
by striking ``section 4245(f) or section 4281(d)'' and inserting 
``section 4245(e) or 4281''.

SEC. 304. EXCISE TAX ON EXCESS COMPENSATION OF COVERED EMPLOYEES OF 
              PARTITIONED MULTIEMPLOYER PLANS.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section:

``SEC. 4980I. TAX ON EXCESS COMPENSATION OF COVERED EMPLOYEES OF 
              PARTITIONED MULTIEMPLOYER PLANS.

    ``(a) Tax Imposed.--In the case of an applicable multiemployer 
plan, there is hereby imposed an excise tax for each plan year in an 
amount equal to the product of--
            ``(1) the rate of tax under section 11 for taxable years 
        beginning in the calendar year in which such plan year begins, 
        and
            ``(2) so much of the remuneration paid by the applicable 
        multiemployer plan for the plan year with respect to employment 
        of any covered employee as exceeds $500,000.
For purposes of the preceding sentence, remuneration shall be treated 
as paid when there is no substantial risk of forfeiture (within the 
meaning of section 457(f)(3)(B)) of the rights to such remuneration.
    ``(b) Liability for Tax.--The applicable multiemployer plan shall 
be liable for the tax imposed under subsection (a).
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable multiemployer plan.--The term `applicable 
        multiemployer plan' means any multiemployer plan which is an 
        original plan (as defined in section 4233A(d)(3) of the 
        Employee Retirement Income Security Act of 1974) with respect 
        to a multiemployer plan which was partitioned pursuant to an 
        order by the Pension Benefit Guaranty Corporation under section 
        4233A of such Act.
            ``(2) Covered employee.--The term `covered employee' means 
        any employee (including any former employee) of an applicable 
        multiemployer plan if the employee--
                    ``(A) is one of the 5 highest compensated employees 
                of the plan for the plan year, or
                    ``(B) was a covered employee of the organization 
                (or any predecessor) for any preceding plan year 
                beginning after the date of the enactment of this 
                section.
            ``(3) Remuneration.--The term `remuneration' means wages 
        (as defined in section 3401(a)).
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to prevent avoidance of the tax under this section, 
including regulations to prevent avoidance of such tax through the 
performance of services other than as an employee or by providing 
compensation through a pass-through or other entity (including a 
related entity) to avoid such tax.''.
    (b) Conforming Amendment.--The table of sections for chapter 43 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

``Sec. 4980I. Tax on excess compensation of covered employees of 
                            partitioned multiemployer plans.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of enactment of this Act.

         Subtitle B--Reportable Events for Multiemployer Plans

SEC. 311. REPORTABLE EVENTS.

    (a) Additional Reportable Events.--
            (1) In general.--Section 4043(c) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1343(c)) is amended by 
        striking ``or'' at the end of paragraph (12), by redesignating 
        paragraph (13) as paragraph (17), and by inserting after 
        paragraph (12) the following new paragraphs:
            ``(13) when the plan sponsor of a multiemployer plan, or 
        such sponsor's delegate, convenes or otherwise takes action to 
        adopt any amendment (or accepts any collective bargaining 
        agreement) that would exclude newly hired employees from 
        participation in the plan, or any amendment (or agreement) that 
        would substantially reduce the rate of future benefit accruals 
        or the contribution rate for any participants under the plan;
            ``(14) when--
                    ``(A) the plan sponsor of a multiemployer plan, or 
                such sponsor's delegate, convenes or otherwise takes 
                action to adopt; or
                    ``(B) the plan sponsor receives notice under 
                subsection (f) or otherwise becomes aware that the 
                bargaining parties have negotiated an agreement to 
                adopt;
        a new pension plan, including any plan a trust forming part of 
        which is a qualified trust under section 401(a) of the Internal 
        Revenue Code of 1986 and any plan treated as a welfare plan by 
        reason of section 3(2)(B)(ii), the expected participants of 
        which are expected to substantially overlap with the active 
        participants in a preexisting plan;
            ``(15) when an event pertaining to a multiemployer plan 
        occurs that is prescribed by the corporation in regulations, if 
        the event materially jeopardizes the security of participant 
        benefits or the financial condition of the plan, or is likely 
        to increase the risk of loss to the corporation;
            ``(16) when a multiemployer plan has, or will foreseeably 
        have, only one trustee or no trustees on its board; or''.
            (2) Notification by bargaining parties.--Section 4043 of 
        such Act (29 U.S.C. 1343) is amended by redesignating 
        subsection (f) as subsection (g), and by inserting after 
        subsection (e) the following new subsection:
    ``(f) Notification by Bargaining Parties.--Not later than 60 days 
prior to the adoption of a new pension plan described in subsection 
(c)(14), the bargaining parties shall notify the plan sponsor of the 
negotiation of an agreement to adopt such plan.''.
            (3) Conforming amendment.--Section 4043(b)(3) of such Act 
        (29 U.S.C. 1343(b)(3)) is amended by striking ``(13)'' and 
        inserting ``(17)''.
    (b) Application to Plans.--
            (1) In general.--Section 4043(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1343(a)) is amended by 
        inserting ``, plan sponsor (in the case of a multiemployer 
        plan),'' after ``plan administrator''.
            (2) Notification that event is about to occur.--Section 
        4043(b) of such Act (29 U.S.C. 1343(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively, and 
                        by moving such clauses 2 ems to the right;
                            (ii) by striking ``shall be applicable to a 
                        contributing sponsor'' and inserting ``shall be 
                        applicable--
                    ``(A) to any plan sponsor of a multiemployer plan; 
                and
                    ``(B) to any contributing sponsor''; and
                            (iii) in the last sentence, by striking 
                        ``subparagraph (B)'' and inserting ``clause 
                        (ii)'';
                    (B) by striking ``This subsection'' in paragraph 
                (2) and inserting ``In the case of a single-employer 
                plan, this subsection'';
                    (C) by striking ``any contributing sponsor'' in 
                paragraph (4) and inserting ``any plan sponsor of a 
                multiemployer plan or any contributing sponsor'';
                    (D) by redesignating paragraph (4), as so amended, 
                as paragraph (5); and
                    (E) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) No later than 60 days prior to an event described in 
        paragraph (13), (14)(A), (15), or (16) of subsection (c), the 
        plan sponsor of a multiemployer plan shall notify the 
        corporation that the event is about to occur.''.
    (c) Technical Corrections.--
            (1) Section 4045(c)(1) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1345(c)(1)) is amended by 
        striking ``4043(b)(7)'' and inserting ``4043(c)(7)''.
            (2) Section 4065(2) of such Act (29 U.S.C. 1365(2)) is 
        amended by striking ``4043(b)'' and inserting ``4043(c)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to reportable events (as defined in section 4043(c) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1343(c))) 
occurring after the date of the enactment of this Act.

   Subtitle C--Funding Notices to Participants in Multiemployer Plans

SEC. 321. IMPROVED MULTIEMPLOYER PLAN DISCLOSURE.

    (a) Plan Funding Notices.--Section 101(f) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)) is amended--
            (1) in paragraph (2)(B)--
                    (A) in clause (iv), by striking ``setting forth'' 
                and inserting ``describing how a person may obtain 
                information regarding'';
                    (B) by striking clauses (v) and (vi);
                    (C) by redesignating clauses (vii) through (xi) as 
                clauses (v) through (ix), respectively;
                    (D) in clause (vi), as so redesignated--
                            (i) by striking ``(I) in the case of'' and 
                        inserting ``in the case of'';
                            (ii) by striking ``, or'' and inserting a 
                        comma; and
                            (iii) by striking subclause (II); and
                    (E) by amending clause (vii), as so redesignated, 
                to read as follows:
                            ``(vii)(I) in the case of a single-employer 
                        plan, a general description of the benefits 
                        under the plan which are eligible to be 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation, and an explanation of the 
                        limitations on the guarantee and the 
                        circumstances under which such limitations 
                        apply, and
                            ``(II) in the case of a multiemployer plan, 
                        a statement that eligible benefits are 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation, and a statement of how to obtain 
                        both a general description of the benefits 
                        under the plan which are eligible to be 
                        guaranteed by the Pension Benefit Guaranty 
                        Corporation and an explanation of the 
                        limitations on the guarantee and the 
                        circumstances under which such limitations 
                        apply,''; and
            (2) in paragraph (4)(C)--
                    (A) by striking ``(C) may be provided'' and 
                inserting ``(C)(i) subject to clause (ii), may be 
                provided'';
                    (B) by striking the period and inserting ``; and''; 
                and
                    (C) by adding at the end the following:
                    ``(ii) in the case of such a notice provided to the 
                Pension Benefit Guaranty Corporation, shall be in an 
                electronic format in such manner prescribed in 
                regulations of such Corporation.''.
    (b) Disclosures by Plans Regarding Status.--
            (1) Amendments to employee retirement income security act 
        of 1974.--Section 305(b)(4) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1085(b)(4)), as redesignated by 
        section 212(a) and as in effect before the amendments made by 
        section 212 other than subsection (a) thereof, is further 
        amended--
                    (A) in the paragraph heading, by striking ``by plan 
                actuary'' and inserting ``and report'';
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--Not later than the 90th day of 
                each plan year of a multiemployer plan, the plan 
                sponsor shall file, in accordance with regulations 
                prescribed by the ERISA agencies, a report that 
                contains--
                            ``(i) documentation from the plan actuary 
                        certifying to the ERISA agencies and to the 
                        plan sponsor--
                                    ``(I) whether or not the plan is in 
                                unrestricted or stable status for such 
                                plan year, whether or not the plan is 
                                in endangered status for such plan year 
                                and whether or not the plan is or will 
                                be in critical status for such plan 
                                year or any of the 5 succeeding plan 
                                years,
                                    ``(II) in the case of a plan which 
                                is in a funding improvement or 
                                rehabilitation period, whether or not 
                                the plan is making the scheduled 
                                progress in meeting the requirements of 
                                its funding improvement or 
                                rehabilitation plan and, if not, a 
                                summary of the primary reasons the plan 
                                is not making the scheduled progress,
                                    ``(III) the funded percentage of 
                                the plan determined as of the first day 
                                of the current plan year and the value 
                                of assets and liabilities used to 
                                calculate such funded percentage,
                                    ``(IV) a projection of the funding 
                                standard account on a year-by-year 
                                basis for the current plan year and the 
                                14 succeeding plan years and a 
                                statement of the actuarial assumptions 
                                for such projections, and
                                    ``(V)(aa) subject to item (bb), a 
                                projection of the cash flow of the plan 
                                and actuarial assumptions for the 
                                current plan year and 14 succeeding 
                                plan years, and
                                    ``(bb) in the case in which it is 
                                certified that a multiemployer plan is 
                                or will be in endangered or critical 
                                status for a plan year, the projection 
                                of the cash flow of the plan and 
                                actuarial assumptions for the current 
                                year and 29 succeeding plan years,
                            ``(ii) as of the last day of the prior plan 
                        year, a good faith determination of--
                                    ``(I) the fair market value of the 
                                assets of the plan,
                                    ``(II) the number of participants 
                                who are--
                                            ``(aa) retired or separated 
                                        from service and are receiving 
                                        benefits,
                                            ``(bb) retired or separated 
                                        participants entitled to future 
                                        benefits, and
                                            ``(cc) active participants 
                                        under the plan,
                                    ``(III) the total value of all 
                                benefits paid during the prior plan 
                                year,
                                    ``(IV) the total value of all 
                                contributions and withdrawal liability 
                                payments made to the plan during the 
                                prior plan year, and
                                    ``(V) the total value of all 
                                investment gains or losses during the 
                                prior plan year,
                            ``(iii) a description of any material 
                        changes during the previous plan year to the 
                        rates at which participants accrue benefits or 
                        the rate at which employers contribute,
                            ``(iv) a copy of any funding improvement 
                        plan or rehabilitation plan, and any update 
                        thereto or modification thereof, that was 
                        adopted under this section prior to the filing 
                        of the report for the current plan year in 
                        accordance with this subparagraph and, if 
                        applicable, after the filing of the report 
                        required by this subparagraph for the prior 
                        plan year,
                            ``(v) in the case of any plan amendment, 
                        scheduled benefit increase or reduction, or 
                        other known event taking effect in the current 
                        plan year and having a material effect on plan 
                        liabilities or assets for the year (as defined 
                        in regulations by the ERISA agencies), an 
                        explanation of the amendment, scheduled 
                        increase or reduction, or event, and a 
                        projection to the end of such plan year of the 
                        effect of the amendment, scheduled increase or 
                        reduction, or event on plan liabilities,
                            ``(vi) in the case of a multiemployer plan 
                        certified to be in critical status for which 
                        the plan sponsor has determined that, based on 
                        reasonable actuarial assumptions and upon 
                        exhaustion of all reasonable measures, the plan 
                        cannot reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, a description of all 
                        reasonable measures, whether or not such 
                        measures were implemented, and a summary of the 
                        consideration of such measures,
                            ``(vii) a statement, containing the 
                        information available to the plan sponsor, 
                        describing--
                                    ``(I) the withdrawal of any 
                                employer during the prior plan year and 
                                the percentage of total contributions 
                                made by that employer during the prior 
                                plan year,
                                    ``(II) any material reduction in 
                                total contributions or withdrawal 
                                liability payments of any employers and 
                                the reason for such reduction, and a 
                                comparison to contributions projected 
                                previously,
                                    ``(III) any material reduction in 
                                the number of active plan participants 
                                and the reason for such reduction, and
                                    ``(IV) the annual withdrawal 
                                liability payment each withdrawn 
                                employer is obligated to pay to the 
                                plan for the plan year, whether that 
                                amount was collected by the plan (and 
                                if not, the amount that was collected), 
                                and the remaining years on the 
                                employer's obligation to make 
                                withdrawal liability payments, and
                            ``(viii) such other information as may be 
                        required by the ERISA agencies by 
                        regulation.'';
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) Form and manner.--The report required by 
                subparagraph (A) shall be filed electronically in 
                accordance with regulations prescribed by the ERISA 
                agencies.'';
                    (D) in subparagraph (D)--
                            (i) by redesignating clauses (ii), (iii), 
                        (iv), and (v) as clauses (iii), (iv), (v), and 
                        (vi), respectively;
                            (ii) by inserting after clause (i) the 
                        following:
                            ``(ii) Plans in endangered or critical 
                        status.--If it is certified under subparagraph 
                        (A) that a multiemployer plan is or will be in 
                        endangered or critical status, the plan sponsor 
                        shall include in the notice under clause (i)--
                                    ``(I) a statement describing how a 
                                person may obtain a copy of the plan's 
                                funding improvement or rehabilitation 
                                plan, as appropriate, adopted under 
                                this section and the actuarial and 
                                financial data that demonstrate any 
                                action taken by the plan toward fiscal 
                                improvement,
                                    ``(II) a summary of any funding 
                                improvement or rehabilitation plan, and 
                                any update thereto or modification 
                                thereof, adopted under this section 
                                prior to the furnishing of such notice,
                                    ``(III) a summary of the rules 
                                governing insolvency, including the 
                                limitations on benefit payments, and
                                    ``(IV) a general description of the 
                                benefits under the plan which are 
                                eligible to be guaranteed by the 
                                Pension Benefit Guaranty Corporation 
                                and an explanation of the limitations 
                                on the guarantee and the circumstances 
                                under which such limitations apply.''; 
                                and
                            (iii) in clause (v), as so redesignated--
                                    (I) by striking ``The Secretary of 
                                the Treasury, in consultation with the 
                                Secretary'' and inserting ``The ERISA 
                                agencies''; and
                                    (II) by striking ``(ii) and (iii)'' 
                                and inserting ``(ii), (iii), and 
                                (iv)''; and
                    (E) by adding at the end the following:
                    ``(E) Designation and coordination.--The ERISA 
                agencies shall--
                            ``(i) designate one ERISA agency to receive 
                        the report described in subparagraph (A) on 
                        behalf of all the ERISA agencies, which shall 
                        each have full access to such report; and
                            ``(ii) consult with each other and develop 
                        rules, regulations, practices, and forms, which 
                        to the extent appropriate for the efficient 
                        administration of the provisions of this 
                        paragraph are designed to replace duplication 
                        of effort, duplication of reporting, 
                        conflicting or overlapping requirements, and 
                        the burden of compliance with such provisions 
                        by plan administrators and plan sponsors.
                    ``(F) ERISA agencies.--In this paragraph, the term 
                `ERISA agencies' means the Secretary, the Secretary of 
                the Treasury, and the Pension Benefit Guaranty 
                Corporation.''.
            (2) Amendments to 1986 code.--Section 432(b)(4) of the 
        Internal Revenue Code of 1986, as redesignated by section 
        211(a) and as in effect before the amendments made by section 
        211 other than subsection (a) thereof, is further amended--
                    (A) in the paragraph heading, by striking ``by plan 
                actuary'' and inserting ``and report'';
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--Not later than the 90th day of 
                each plan year of a multiemployer plan, the plan 
                sponsor shall file, in accordance with regulations 
                prescribed by the ERISA agencies, a report that 
                contains--
                            ``(i) documentation from the plan actuary 
                        certifying to the ERISA agencies and to the 
                        plan sponsor--
                                    ``(I) whether or not the plan is in 
                                unrestricted or stable status for such 
                                plan year, whether or not the plan is 
                                in endangered status for such plan year 
                                and whether or not the plan is or will 
                                be in critical status for such plan 
                                year or any of the 5 succeeding plan 
                                years,
                                    ``(II) in the case of a plan which 
                                is in a funding improvement or 
                                rehabilitation period, whether or not 
                                the plan is making the scheduled 
                                progress in meeting the requirements of 
                                its funding improvement or 
                                rehabilitation plan and, if not, a 
                                summary of the primary reasons the plan 
                                is not making the scheduled progress,
                                    ``(III) the funded percentage of 
                                the plan determined as of the first day 
                                of the current plan year and the value 
                                of assets and liabilities used to 
                                calculate such funded percentage,
                                    ``(IV) a projection of the funding 
                                standard account on a year-by-year 
                                basis for the current plan year and the 
                                14 succeeding plan years and a 
                                statement of the actuarial assumptions 
                                for such projections, and
                                    ``(V)(aa) subject to item (bb), a 
                                projection of the cash flow of the plan 
                                and actuarial assumptions for the 
                                current plan year and 14 succeeding 
                                plan years, and
                                    ``(bb) in the case in which it is 
                                certified that a multiemployer plan is 
                                or will be in endangered or critical 
                                status for a plan year, the projection 
                                of the cash flow of the plan and 
                                actuarial assumptions for the current 
                                year and 29 succeeding plan years,
                            ``(ii) as of the last day of the prior plan 
                        year, a good faith determination of--
                                    ``(I) the fair market value of the 
                                assets of the plan,
                                    ``(II) the number of participants 
                                who are--
                                            ``(aa) retired or separated 
                                        from service and are receiving 
                                        benefits,
                                            ``(bb) retired or separated 
                                        participants entitled to future 
                                        benefits, and
                                            ``(cc) active participants 
                                        under the plan,
                                    ``(III) the total value of all 
                                benefits paid during the prior plan 
                                year,
                                    ``(IV) the total value of all 
                                contributions and withdrawal liability 
                                payments made to the plan during the 
                                prior plan year, and
                                    ``(V) the total value of all 
                                investment gains or losses during the 
                                prior plan year,
                            ``(iii) a description of any material 
                        changes during the previous plan year to the 
                        rates at which participants accrue benefits or 
                        the rate at which employers contribute,
                            ``(iv) a copy of any funding improvement 
                        plan or rehabilitation plan, and any update 
                        thereto or modification thereof, that was 
                        adopted under this section prior to the filing 
                        of the report for the current plan year in 
                        accordance with this subparagraph and, if 
                        applicable, after the filing of the report 
                        required by this subparagraph for the prior 
                        plan year,
                            ``(v) in the case of any plan amendment, 
                        scheduled benefit increase or reduction, or 
                        other known event taking effect in the current 
                        plan year and having a material effect on plan 
                        liabilities or assets for the year (as defined 
                        in regulations by the ERISA agencies), an 
                        explanation of the amendment, scheduled 
                        increase or reduction, or event, and a 
                        projection to the end of such plan year of the 
                        effect of the amendment, scheduled increase or 
                        reduction, or event on plan liabilities,
                            ``(vi) in the case of a multiemployer plan 
                        certified to be in critical status for which 
                        the plan sponsor has determined that, based on 
                        reasonable actuarial assumptions and upon 
                        exhaustion of all reasonable measures, the plan 
                        cannot reasonably be expected to emerge from 
                        critical status by the end of the 
                        rehabilitation period, a description of all 
                        reasonable measures, whether or not such 
                        measures were implemented, and a summary of the 
                        consideration of such measures,
                            ``(vii) a statement, containing the 
                        information available to the plan sponsor, 
                        describing--
                                    ``(I) the withdrawal of any 
                                employer during the prior plan year and 
                                the percentage of total contributions 
                                made by that employer during the prior 
                                plan year, and a comparison to 
                                contributions projected previously,
                                    ``(II) any material reduction in 
                                total contributions or withdrawal 
                                liability payments of any employers and 
                                the reason for such reduction,
                                    ``(III) any material reduction in 
                                the number of active plan participants 
                                and the reason for such reduction, and
                                    ``(IV) the annual withdrawal 
                                liability payment each withdrawn 
                                employer is obligated to pay to the 
                                plan for the plan year, whether that 
                                amount was collected by the plan (and 
                                if not, the amount that was collected), 
                                and the remaining years on the 
                                employer's obligation to make 
                                withdrawal liability payments, and
                            ``(viii) such other information as may be 
                        required by the ERISA agencies by 
                        regulation.'';
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) Form and manner.--The report required by 
                subparagraph (A) shall be filed electronically in 
                accordance with regulations prescribed by the ERISA 
                agencies.'';
                    (D) in subparagraph (D)--
                            (i) by redesignating clauses (ii), (iii), 
                        (iv), and (v) as clauses (iii), (iv), (v), and 
                        (vi), respectively;
                            (ii) by inserting after clause (i) the 
                        following:
                            ``(ii) Plans in endangered or critical 
                        status.--If it is certified under subparagraph 
                        (A) that a multiemployer plan is or will be in 
                        endangered or critical status, the plan sponsor 
                        shall include in the notice under clause (i)--
                                    ``(I) a statement describing how a 
                                person may obtain a copy of the plan's 
                                funding improvement or rehabilitation 
                                plan, as appropriate, adopted under 
                                this section and the actuarial and 
                                financial data that demonstrate any 
                                action taken by the plan toward fiscal 
                                improvement,
                                    ``(II) a summary of any funding 
                                improvement or rehabilitation plan, and 
                                any update thereto or modification 
                                thereof, adopted under this section 
                                prior to the furnishing of such notice,
                                    ``(III) a summary of the rules 
                                governing insolvency, including the 
                                limitations on benefit payments, and
                                    ``(IV) a general description of the 
                                benefits under the plan which are 
                                eligible to be guaranteed by the 
                                Pension Benefit Guaranty Corporation 
                                and an explanation of the limitations 
                                on the guarantee and the circumstances 
                                under which such limitations apply.''; 
                                and
                            (iii) in clause (v), as so redesignated--
                                    (I) by striking ``The Secretary of 
                                the Treasury, in consultation with the 
                                Secretary'' and inserting ``The ERISA 
                                agencies''; and
                                    (II) by striking ``(ii) and (iii)'' 
                                and inserting ``(ii), (iii), and 
                                (iv)''; and
                    (E) by adding at the end the following:
                    ``(E) Designation and coordination.--The ERISA 
                agencies shall--
                            ``(i) designate one ERISA agency to receive 
                        the report described in subparagraph (A) on 
                        behalf of all the ERISA agencies, which shall 
                        each have full access to such report; and
                            ``(ii) consult with each other and develop 
                        rules, regulations, practices, and forms, which 
                        to the extent appropriate for the efficient 
                        administration of the provisions of this 
                        paragraph are designed to replace duplication 
                        of effort, duplication of reporting, 
                        conflicting or overlapping requirements, and 
                        the burden of compliance with such provisions 
                        by plan administrators and plan sponsors.
                    ``(F) ERISA agencies.--In this paragraph, the term 
                `ERISA agencies' means the Secretary, the Secretary of 
                Labor, and the Pension Benefit Guaranty Corporation.''.
            (3) Investigations.--Section 4003 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1303) is 
        amended by adding at the end the following:
    ``(g) The corporation may investigate or review any facts, 
conditions, practices, or other matters it determines necessary or 
proper related to the actuarial certification and report by 
multiemployer plans under section 305(b)(4)(A), or to obtain such 
information as any duly authorized committee or subcommittee of the 
Congress may request with respect to such plans. Any information or 
documentary material submitted to the corporation pursuant to this 
section, if clearly designated by the person making the submission as 
confidential (on each page in the case of a document, and in the file 
name in the case of a digital file), shall be exempt from disclosure 
under section 552 of title 5, United States Code, and no such 
information or documentary material may be made public, except as may 
be relevant to any administrative or judicial action or proceeding, 
including an informal rulemaking.''.

SEC. 322. PENALTIES FOR FAILURE TO PROVIDE NOTICES.

    (a) In General.--Section 502(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1132) is amended--
            (1) in paragraph (7)--
                    (A) by striking ``(7) The Secretary'' and inserting 
                ``(7)(A) The Secretary''; and
                    (B) by adding at the end the following:
    ``(B) The Secretary may assess a civil penalty against a plan 
sponsor of up to $110 per day from the date of the plan administrator's 
or sponsor's failure or refusal to provide the relevant notices under 
section 101(f) or section 305(b)(4)(D) to a recipient other than the 
Secretary or the Pension Benefit Guaranty Corporation. For purposes of 
this paragraph, each violation with respect to any single recipient 
shall be treated as a separate violation.''; and
            (2) by adding at the end the following:
            ``(13)(A) The Secretary may assess a civil penalty against 
        any plan sponsor of up to $2,140 per day from the date of the 
        plan sponsor's failure to file with the Secretary or the 
        Pension Benefit Guaranty Corporation the notice required under 
        section 305(b)(4)(D) or with the Pension Benefit Guaranty 
        Corporation the notice required under section 101(f).
            ``(B) The Secretary may assess a civil penalty against any 
        plan sponsor of up to $1,100 per day from the date of the plan 
        sponsor's failure to file with the ERISA agency designated in 
        accordance with subparagraph (E) of section 305(b)(4) the 
        report under subparagraph (A) of such section.''.
    (b) Conforming Amendment.--Section 502(a)(6) of such Act is amended 
by striking ``or (9)'' and inserting ``(9), (10), or (13)''.

             Subtitle D--Consistency of Criminal Penalties

SEC. 331. CONSISTENCY OF CRIMINAL PENALTIES.

    Part I of title 18, United States Code, is amended--
            (1) in section 664, in the first undesignated paragraph, by 
        striking ``five years'' and inserting ``10 years'';
            (2) in section 1027, by striking ``five years'' and 
        inserting ``10 years''; and
            (3) in section 1954, in the undesignated matter following 
        paragraph (4), by striking ``three years'' and inserting ``10 
        years''.

               TITLE IV--OTHER MULTIEMPLOYER PLAN REFORMS

SEC. 401. CLARIFICATION OF FIDUCIARY DUTY OF RETIREE REPRESENTATIVE WHO 
              IS A TRUSTEE.

    (a) Amendment of Internal Revenue Code of 1986.--Subclause (III) of 
section 432(f)(9)(B)(v) of the Internal Revenue Code of 1986, as 
redesignated by section 211(a) and as in effect before the amendments 
made by section 211 other than subsection (a) thereof, is amended by 
striking the period and inserting ``, or to any other duties performed 
by such person pursuant to such person's role as a plan trustee.''.
    (b) Amendment of Employee Retirement Income Security Act of 1974.--
Subclause (III) of section 305(f)(9)(B)(v) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1085(f)(9)(B)(v)), as 
redesignated by section 212(a) and as in effect before the amendments 
made by section 212 other than subsection (a) thereof, is amended by 
striking the period and inserting ``, or to any other duties performed 
by such person pursuant to such person's role as a plan trustee.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 402. SAFE HARBORS.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) Equitable distribution of benefit suspensions.--Clause 
        (vi) of section 432(f)(9)(D) of the Internal Revenue Code of 
        1986, as redesignated by section 211(a) and as in effect before 
        the amendments made by section 211 other than subsection (a) 
        thereof, is amended by adding at the end the following flush 
        language:
                        ``For purposes of the preceding sentence, a 
                        suspension of benefits in the form of a flat 
                        percentage reduction in benefits which is 
                        applied in the same manner to all participants 
                        and beneficiaries (before application of 
                        clauses (ii) and (iii)) shall be treated as 
                        being equitably distributed across the 
                        participant and beneficiary population.''.
            (2) Application assumptions.--Clause (v) of section 
        432(f)(9)(G) of such Code, as so redesignated and in effect, is 
        amended--
                    (A) by striking ``Standard for accepting'' in the 
                heading and inserting ``Standards for assumptions and 
                accepting'', and
                    (B) by striking ``In evaluating'' and inserting 
                ``The Secretary, in consultation with the Pension 
                Benefit Guaranty Corporation and the Secretary of 
                Labor, shall promulgate regulations regarding the 
                actuarial assumptions that plans may use for purposes 
                of the application under this subparagraph. Such 
                regulations shall create safe harbors regarding 
                assumptions for future rate of investment returns, 
                future industry activity and contribution base units, 
                mortality, and other assumptions as determined by the 
                Secretary, and shall describe the situations in which 
                actuarial assumptions may change during review of an 
                application without the withdrawal and resubmission of 
                the application. In evaluating''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Equitable distribution of benefit suspensions.--Clause 
        (vi) of section 305(f)(9)(D) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1085(f)(9)(D)), as redesignated 
        by section 212(a) and as in effect before the amendments made 
        by section 212 other than subsection (a) thereof, is amended by 
        adding at the end the following flush language:
                        ``For purposes of the preceding sentence, a 
                        suspension of benefits in the form of a flat 
                        percentage reduction in benefits which is 
                        applied in the same manner to all participants 
                        and beneficiaries (before application of 
                        clauses (ii) and (iii)) shall be treated as 
                        being equitably distributed across the 
                        participant and beneficiary population.''.
            (2) Application assumptions.--Clause (v) of section 
        305(f)(9)(G) of such Act (29 U.S.C. 1085(f)(9)(G)), as so 
        redesignated and in effect, is amended--
                    (A) by striking ``Standard for accepting'' in the 
                heading and inserting ``Standards for assumptions and 
                accepting'', and
                    (B) by striking ``In evaluating'' and inserting 
                ``The Secretary of the Treasury, in consultation with 
                the Pension Benefit Guaranty Corporation and the 
                Secretary of Labor, shall promulgate regulations 
                regarding the actuarial assumptions that plans may use 
                for purposes of the application under this 
                subparagraph. Such regulations shall create safe 
                harbors regarding assumptions for future rate of 
                investment returns, future industry activity and 
                contribution base units, mortality, and other 
                assumptions as determined by the Secretary, and shall 
                describe the situations in which actuarial assumptions 
                may change during review of an application without the 
                withdrawal and resubmission of the application. In 
                evaluating''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by subsections (a)(1) 
        and (b)(1) shall apply to suspensions of benefits taking effect 
        after the date of the enactment of this Act.
            (2) Applications.--The amendments made by subsections 
        (a)(2) and (b)(2) shall apply to applications submitted after 
        the date of the enactment of this Act.

SEC. 403. CLARIFICATION OF NOTICE AND COMMENT PROCESS.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) Notice to participants.--Subparagraph (F) of section 
        432(f)(9) of the Internal Revenue Code of 1986, as redesignated 
        by section 211(a) and as in effect before the amendments made 
        by section 211 other than subsection (a) thereof, is amended by 
        adding at the end the following new clause:
                            ``(vi) De minimis changes.--Notice under 
                        clause (i) is not required in the case of a 
                        change to a notice previously issued, and an 
                        application previously submitted under 
                        subparagraph (G), if such change would have a 
                        de minimis effect on the suspension of benefits 
                        proposed, such as a change of 5 percent or less 
                        (whether increase or decrease) of a 
                        participant's post-suspension benefits.''.
            (2) Solicitation of comments.--
                    (A) De minimis changes.--Clause (ii) of section 
                432(f)(9)(G) of such Code, as so redesignated and in 
                effect, is amended by adding at the end the following: 
                ``The preceding sentences shall not apply in the case 
                of a resubmission of an application previously 
                submitted if such change would have a de minimis effect 
                on the suspension of benefits proposed.''.
                    (B) Extension of period for correction of defect.--
                Clause (iii) of section 432(f)(9)(G) of such Code, as 
                so redesignated and in effect, is amended by inserting 
                after the second sentence the following: ``If the only 
                failure with respect to an application is a failure to 
                provide adequate notice to participants under 
                subparagraph (F), the Secretary may extend the 225-day 
                deadline for consideration of the application by notice 
                to the plan sponsor.''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Notice to participants.--Subparagraph (F) of section 
        305(f)(9) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1085(f)(9)), as redesignated by section 212(a) 
        and as in effect before the amendments made by section 212 
        other than subsection (a) thereof, is amended by adding at the 
        end the following new clause:
                            ``(vi) De minimis changes.--Notice under 
                        clause (i) is not required in the case of a 
                        change to a notice previously issued, and an 
                        application previously submitted under 
                        subparagraph (G), if such change would have a 
                        de minimis effect on the suspension of benefits 
                        proposed, such as a change of 5 percent or less 
                        (whether increase or decrease) of a 
                        participant's post-suspension benefits.''.
            (2) Solicitation of comments.--
                    (A) De minimis changes.--Clause (ii) of section 
                305(f)(9)(G) of such Act (29 U.S.C. 1085(f)(9)(G)), as 
                so redesignated and in effect, is amended by adding at 
                the end the following: ``The preceding sentences shall 
                not apply in the case of a resubmission of an 
                application previously submitted if such change would 
                have a de minimis effect on the suspension of benefits 
                proposed.''.
                    (B) Extension of period for correction of defect.--
                Clause (iii) of section 305(f)(9)(G) of such Act (29 
                U.S.C. 1085(f)(9)(G)), as so redesignated and in 
                effect, is amended by inserting after the second 
                sentence the following: ``If the only failure with 
                respect to an application is a failure to provide 
                adequate notice to participants under subparagraph (F), 
                the Secretary may extend the 225-day deadline for 
                consideration of the application by notice to the plan 
                sponsor.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to applications, or changes to applications, submitted after the 
date of the enactment of this Act.

SEC. 404. PROTECTION OF PARTICIPANTS RECEIVING DISABILITY BENEFITS.

    (a) Amendment to Internal Revenue Code of 1986.--Clause (iii) of 
section 432(f)(9)(D) of the Internal Revenue Code of 1986, as 
redesignated by section 211(a) and as in effect before the amendments 
made by section 211 other than subsection (a) thereof, is amended to 
read as follows:
                            ``(iii) No benefits based on disability (as 
                        defined under the plan) may be suspended under 
                        this paragraph if the participant or 
                        beneficiary is disabled (as so defined) or 
                        receiving disability benefits under the plan as 
                        of the date of the suspension of benefits. No 
                        benefits under the plan may be suspended under 
                        this paragraph of any participant or 
                        beneficiary who is entitled to a benefit under 
                        title II of the Social Security Act on the 
                        basis of a disability (as defined in section 
                        223(d)(2) of such Act) as of such date.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Clause (iii) of section 305(f)(9)(D) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1085(f)(9)(D)), as redesignated by 
section 212(a) and as in effect before the amendments made by section 
212 other than subsection (a) thereof, is amended to read as follows:
                            ``(iii) No benefits based on disability (as 
                        defined under the plan) may be suspended under 
                        this paragraph if the participant or 
                        beneficiary is disabled (as so defined) or 
                        receiving disability benefits under the plan as 
                        of the date of the suspension of benefits. No 
                        benefits under the plan may be suspended under 
                        this paragraph of any participant or 
                        beneficiary who is entitled to a benefit under 
                        title II of the Social Security Act on the 
                        basis of a disability (as defined in section 
                        223(d)(2) of such Act) as of such date.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to suspensions of benefits taking effect after the date of the 
enactment of this Act.

SEC. 405. MODEL NOTICE.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary of the Treasury, in consultation with the Secretary of 
Labor and the Pension Benefit Guaranty Corporation, shall develop a 1-
page, plain-language, cover-page format for the model notice under 
section 432(e)(9)(F)(v) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of the enactment of this Act) and 
section 305(e)(9)(F)(v) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1085(e)(9)(F)(v)), as so in effect.

                  TITLE V--ALTERNATIVE PLAN STRUCTURES

SEC. 501. COMPOSITE PLANS.

    (a) Amendment to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Title I of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1001 et seq.) is amended by 
        adding at the end the following:

               ``PART 8--COMPOSITE PLANS AND LEGACY PLANS

``SEC. 801. COMPOSITE PLAN DEFINED.

    ``(a) In General.--For purposes of this Act, the term `composite 
plan' means a pension plan--
            ``(1) which is a multiemployer plan that is neither a 
        defined benefit plan nor a defined contribution plan;
            ``(2) the terms of which provide that the plan is a 
        composite plan for purposes of this title with respect to which 
        not more than one multiemployer defined benefit plan is treated 
        as a legacy plan within the meaning of section 805, unless 
        there is more than one legacy plan following a merger of 
        composite plans under section 806;
            ``(3) which provides systematically for the payment of 
        benefits--
                    ``(A) objectively calculated pursuant to a 
                nondiscretionary formula specified in the plan document 
                with respect to plan participants for life; and
                    ``(B) in the form of life annuities, except for 
                benefits which under section 203(e) may be immediately 
                distributed without the consent of the participant;
            ``(4) for which the anticipated employer contributions to 
        the plan for the first plan year are at least 120 percent of 
        the normal cost for the plan year;
            ``(5) which requires--
                    ``(A) an annual valuation of the liability of the 
                plan as of a date within the plan year to which the 
                valuation refers or within one month prior to the 
                beginning of such year;
                    ``(B) an annual actuarial determination of the 
                plan's current funded ratio and projected funded ratio 
                under section 802(a);
                    ``(C) corrective action through a realignment 
                program pursuant to section 803 whenever the plan's 
                projected funded ratio is below 120 percent for the 
                plan year; and
                    ``(D) an annual notification to each participant 
                describing benefits under the plan and explaining that 
                such benefits may be subject to reduction under a 
                realignment program pursuant to section 803 based on 
                the plan's funded status in future plan years; and
            ``(6) the board of trustees of which includes at least one 
        retiree or beneficiary in pay status during each plan year 
        following the first plan year in which at least 5 percent of 
        the participants in the plan are retirees or beneficiaries in 
        pay status.
    ``(b) Transition From a Multiemployer Defined Benefit Plan.--
            ``(1) In general.--The plan sponsor of a defined benefit 
        plan that is a multiemployer plan may, subject to paragraph 
        (2), amend the plan to incorporate the features of a composite 
        plan as a component of the multiemployer plan separate from the 
        defined benefit plan component, except in the case of a defined 
        benefit plan for which the plan actuary has certified under 
        section 305(b)(4) that the plan is or will be in endangered or 
        critical status for the plan year in which such amendment would 
        become effective or in endangered or critical status for any of 
        the succeeding 5 plan years.
            ``(2) Requirements.--Any amendment pursuant to paragraph 
        (1) to incorporate the features of a composite plan as a 
        component of a multiemployer plan shall--
                    ``(A) apply with respect to all collective 
                bargaining agreements providing for contributions to 
                the multiemployer plan on or after the effective date 
                of the amendment;
                    ``(B) apply with respect to all participants in the 
                multiemployer plan for whom contributions are made to 
                the multiemployer plan on or after the effective date 
                of the amendment;
                    ``(C) specify that the effective date of the 
                amendment is--
                            ``(i) the first day of a specified plan 
                        year following the date of the adoption of the 
                        amendment, except that the plan sponsor may 
                        alternatively provide for a separate effective 
                        date with respect to each collective bargaining 
                        agreement under which contributions to the 
                        multiemployer plan are required, which shall 
                        occur on the first day of the first plan year 
                        beginning after the termination, or if earlier, 
                        the re-opening, of each such agreement, or such 
                        earlier date as the parties to the agreement 
                        and the plan sponsor of the multiemployer plan 
                        shall agree to; and
                            ``(ii) not later than the first day of the 
                        fifth plan year beginning on or after the date 
                        of the adoption of the amendment;
                    ``(D) specify that, as of the amendment's effective 
                date, no further benefits shall accrue under the 
                defined benefit component of the multiemployer plan; 
                and
                    ``(E) specify that, as of the amendment's effective 
                date, the plan sponsor of the multiemployer plan shall 
                be the plan sponsor of both the composite plan 
                component and the defined benefit plan component of the 
                plan.
            ``(3) Special rules.--If a multiemployer plan is amended 
        pursuant to paragraph (1)--
                    ``(A) the requirements of this title and title IV 
                shall be applied to the composite plan component and 
                the defined benefit plan component of the multiemployer 
                plan as if each such component were maintained as a 
                separate plan; and
                    ``(B) the assets of the composite plan component 
                and the defined benefit plan component of the plan 
                shall be held in a single trust forming part of the 
                plan under which the trust instrument expressly 
                provides--
                            ``(i) for separate accounts (and 
                        appropriate records) to be maintained to 
                        reflect the interest which each of the plan 
                        components has in the trust, including separate 
                        accounting for additions to the trust for the 
                        benefit of each plan component, disbursements 
                        made from each plan component's account in the 
                        trust, investment experience of the trust 
                        allocable to that account, and administrative 
                        expenses (whether direct expenses or shared 
                        expenses allocated proportionally), and 
                        permits, but does not require, the pooling of 
                        some or all of the assets of the two plan 
                        components for investment purposes, subject to 
                        the judgment of the plan fiduciaries; and
                            ``(ii) that the assets of each of the two 
                        plan components shall be held, invested, 
                        reinvested, managed, administered and 
                        distributed for the exclusive benefit of the 
                        participants and beneficiaries of each such 
                        plan component, and in no event shall the 
                        assets of one of the plan components be 
                        available to pay benefits due under the other 
                        plan component.
            ``(4) Not a termination event.--Notwithstanding section 
        4041A, an amendment pursuant to paragraph (1) to incorporate 
        the features of a composite plan as a component of a 
        multiemployer plan does not constitute termination of the 
        multiemployer plan.
            ``(5) Notice to the secretary.--
                    ``(A) Notice.--The plan sponsor of a composite plan 
                shall provide notice to the Secretary of the intent to 
                establish the composite plan (or, in the case of a 
                composite plan incorporated as a component of a 
                multiemployer plan as described in paragraph (1), the 
                intent to amend the multiemployer plan to incorporate 
                such composite plan) at least 30 days prior to the 
                effective date of such establishment or amendment.
                    ``(B) Certification.--In the case of a composite 
                plan incorporated as a component of a multiemployer 
                plan as described in paragraph (1), such notice shall 
                include a certification by the plan actuary under 
                section 305(b)(4) that the effective date of the 
                amendment occurs in a plan year for which the 
                multiemployer plan is not in endangered or critical 
                status for that plan year and any of the succeeding 5 
                plan years.
            ``(6) References to composite plan component.--As used in 
        this part, the term `composite plan' includes a composite plan 
        component added to a defined benefit plan pursuant to paragraph 
        (1).
            ``(7) Rule of construction.--Paragraph (2)(A) shall not be 
        construed as preventing the plan sponsor of a multiemployer 
        plan from adopting an amendment pursuant to paragraph (1) 
        because some collective bargaining agreements are amended to 
        cease any covered employer's obligation to contribute to the 
        multiemployer plan before or after the plan amendment is 
        effective. Paragraph (2)(B) shall not be construed as 
        preventing the plan sponsor of a multiemployer plan from 
        adopting an amendment pursuant to paragraph (1) because some 
        participants cease to have contributions made to the 
        multiemployer plan on their behalf before or after the plan 
        amendment is effective.
    ``(c) Coordination With Funding Rules.--Except as otherwise 
provided in this part, sections 302, 304, and 305 shall not apply to a 
composite plan.
    ``(d) Treatment of a Composite Plan.--For purposes of this Act 
(other than sections 302 and 4245), a composite plan shall be treated 
as if it were a defined benefit plan unless a different treatment is 
provided for under applicable law.

``SEC. 802. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS.

    ``(a) Certification of Funded Ratios.--
            ``(1) In general.--Not later than the one-hundred twentieth 
        day of each plan year of a composite plan, the plan actuary of 
        the composite plan shall certify to the Secretary, the 
        Secretary of the Treasury, and the plan sponsor the plan's 
        current funded ratio and projected funded ratio for the plan 
        year.
            ``(2) Determination of current funded ratio and projected 
        funded ratio.--For purposes of this section:
                    ``(A) Current funded ratio.--The current funded 
                ratio is the ratio (expressed as a percentage) of--
                            ``(i) the value of the plan's assets as of 
                        the first day of the plan year; to
                            ``(ii) the plan actuary's calculation of 
                        the present value of the plan liabilities as of 
                        the first day of the plan year.
                    ``(B) Projected funded ratio.--The projected funded 
                ratio is the funded ratio determined under subparagraph 
                (A), projected as of the first day of the fifteenth 
                plan year following the plan year for which the 
                determination is being made.
            ``(3) Consideration of contribution rate increases.--For 
        purposes of projections under this subsection, the plan actuary 
        may anticipate contribution rate increases beyond the term of 
        the current collective bargaining agreement and any agreed-to 
        supplements, if reasonable, not to exceed 2.5 percent per year, 
        compounded annually.
    ``(b) Actuarial Assumptions and Methods.--For purposes of this 
part:
            ``(1) In general.--All costs, liabilities, rates of 
        interest, and other factors under the plan shall be determined 
        for a plan year on the basis of actuarial assumptions and 
        methods--
                    ``(A) each of which is reasonable (taking into 
                account the experience of the plan and reasonable 
                expectations);
                    ``(B) which, in combination, offer the actuary's 
                best estimate of anticipated experience under the plan; 
                and
                    ``(C) with respect to which any change from the 
                actuarial assumptions and methods used in the previous 
                plan year shall be certified by the plan actuary and 
                the actuarial rationale for such change provided in the 
                annual report required by section 103.
            ``(2) Fair market value of assets.--The value of the plan's 
        assets shall be taken into account on the basis of their fair 
        market value.
            ``(3) Determination of normal cost and plan liabilities.--A 
        plan's normal cost and liabilities shall be based--
                    ``(A) on the most recent actuarial valuation 
                required under section 801(a)(5)(A) and the unit credit 
                funding method; and
                    ``(B) on rates of interest subject to section 
                304(b)(6).
            ``(4) Time when certain contributions deemed made.--Any 
        contributions for a plan year made by an employer after the 
        last day of such plan year, but not later than 2\1/2\ months 
        after such day, shall be deemed to have been made on such last 
        day. For purposes of this paragraph, such 2\1/2\-month period 
        may be extended to a total of not more than 120 days under 
        regulations prescribed by the Secretary of the Treasury.
            ``(5) Additional actuarial assumptions.--Except where 
        otherwise provided in this part, the provisions of section 
        305(b)(4)(B) shall apply to any determination or projection 
        under this part.

``SEC. 803. REALIGNMENT PROGRAM.

    ``(a) Realignment Program.--
            ``(1) Adoption.--In any case in which the plan actuary 
        certifies under section 802(a) that the plan's projected funded 
        ratio is below 120 percent for the plan year, the plan sponsor 
        shall adopt a realignment program under paragraph (2) not later 
        than 210 days after the due date of the certification required 
        under such section 802(a). The plan sponsor shall adopt an 
        updated realignment program for each succeeding plan year for 
        which a certification described in the preceding sentence is 
        made.
            ``(2) Content of realignment program.--
                    ``(A) In general.--A realignment program adopted 
                under this paragraph is a written program which 
                consists of reasonable measures, including options or a 
                range of options to be undertaken by the plan sponsor 
                or proposed to the bargaining parties, formulated, 
                based on reasonably anticipated experience and 
                reasonable actuarial assumptions, to enable the plan to 
                achieve a projected funded ratio of at least 120 
                percent for the following plan year.
                    ``(B) Initial program elements.--Reasonable 
                measures under a realignment program described in 
                subparagraph (A) may include any of the following:
                            ``(i) Proposed contribution increases.
                            ``(ii) A reduction in the rate of future 
                        benefit accruals, so long as the resulting rate 
                        is not less than 1 percent of the contributions 
                        on which benefits are based as of the start of 
                        the plan year (or the equivalent standard 
                        accrual rate as described in section 
                        305(f)(6)).
                            ``(iii) A modification or elimination of 
                        adjustable benefits of participants that are 
                        not in pay status before the date of the notice 
                        required under subsection (b)(1).
                            ``(iv) Any other lawfully available 
                        measures not specifically described in this 
                        subparagraph or subparagraph (C) or (D) that 
                        the plan sponsor determines are reasonable.
                    ``(C) Additional program elements.--If the plan 
                sponsor has determined that all reasonable measures 
                available under subparagraph (B) will not enable the 
                plan to achieve a projected funded ratio of at least 
                120 percent for the following plan year, the 
                realignment program may also include--
                            ``(i) a reduction of accrued benefits that 
                        are not in pay status by the date of the notice 
                        required under subsection (b)(1); or
                            ``(ii) a reduction of any benefits of 
                        participants that are in pay status before the 
                        date of the notice required under subsection 
                        (b)(1) other than core benefits as defined in 
                        paragraph (4).
                    ``(D) Additional elements.--In the case of a 
                composite plan for which the plan sponsor has 
                determined that all reasonable measures available under 
                subparagraphs (B) and (C) will not enable the plan to 
                achieve a projected funded ratio of at least 120 
                percent for the following plan year, the realignment 
                program may also include--
                            ``(i) a further reduction in the rate of 
                        future benefit accruals without regard to the 
                        limitation applicable under subparagraph 
                        (B)(ii); or
                            ``(ii) a reduction of core benefits,
                provided that such reductions shall be equitably 
                distributed across the participant and beneficiary 
                population, taking into account factors, with respect 
                to participants and beneficiaries and their benefits, 
                that may include one or more of the factors listed in 
                subclauses (I) through (X) of section 305(f)(9)(D)(vi), 
                to the extent necessary to enable the plan to achieve a 
                projected funded ratio of at least 120 percent for the 
                following plan year.
            ``(3) Adjustable benefit defined.--For purposes of this 
        part, the term `adjustable benefit' means--
                    ``(A) benefits, rights, and features under the 
                plan, including post-retirement death benefits, 
                disability benefits not yet in pay status, and similar 
                benefits,
                    ``(B) any early retirement benefit or retirement-
                type subsidy (within the meaning of section 
                204(g)(2)(A)) (including early reduction factors which 
                are not provided on an actuarially equivalent basis) 
                and any benefit payment option (other than the 
                qualified joint and survivor annuity),
                    ``(C) benefit increases which were adopted (or, if 
                later, took effect) less than 120 months before the 
                first day of the first plan year in which such 
                realignment program took effect,
                    ``(D) any one-time bonus payment or `thirteenth 
                check' provision, and
                    ``(E) benefits granted for period of service prior 
                to participation in the plan.
            ``(4) Core benefit defined.--For purposes of this part, the 
        term `core benefit' means a participant's accrued benefit 
        payable in the normal form of an annuity commencing at normal 
        retirement age, determined without regard to--
                    ``(A) any early retirement benefits, retirement-
                type subsidies, or other benefits, rights, or features 
                that may be associated with that benefit; and
                    ``(B) any cost-of-living adjustments or benefit 
                increases effective after the date of retirement.
            ``(5) Coordination with contribution increases.--
                    ``(A) In general.--A realignment program may 
                provide that some or all of the benefit modifications 
                described in the program will only take effect if the 
                bargaining parties fail to agree to specified levels of 
                increases in contributions to the plan, effective as of 
                specified dates.
                    ``(B) Independent benefit modifications.--If a 
                realignment program adopts any changes to the benefit 
                formula that are independent of potential contribution 
                increases, such changes shall take effect not later 
                than 180 days after the first day of the first plan 
                year that begins following the adoption of the 
                realignment program.
                    ``(C) Conditional benefit modifications.--If a 
                realignment program adopts any changes to the benefit 
                formula that take effect only if the bargaining parties 
                fail to agree to contribution increases, such changes 
                shall take effect not later than the first day of the 
                first plan year beginning after the third anniversary 
                of the date of adoption of the realignment program.
                    ``(D) Revocation of certain benefit 
                modifications.--Benefit modifications described in 
                subparagraph (C) may be revoked, in whole or in part, 
                and retroactively or prospectively, when contributions 
                to the plan are increased, as specified in the 
                realignment program, including any amendments thereto. 
                The preceding sentence shall not apply unless the 
                contribution increases are to be effective not later 
                than the fifth anniversary of the first day of the 
                first plan year that begins after the adoption of the 
                realignment program.
    ``(b) Notice.--
            ``(1) In general.--In any case in which it is certified 
        under section 802(a) that the projected funded ratio is less 
        than 120 percent, the plan sponsor shall, not later than 30 
        days after the date of the certification, provide notification 
        of the current and projected funded ratios to the participants 
        and beneficiaries, the bargaining parties, the Secretary of the 
        Treasury, and the Secretary. Such notice shall include--
                    ``(A) an explanation that contribution rate 
                increases or benefit reductions may be necessary;
                    ``(B) a description of the types of benefits that 
                might be reduced; and
                    ``(C) an estimate of the contribution increases and 
                benefit reductions that may be necessary to achieve a 
                projected funded ratio of 120 percent.
            ``(2) Notice of benefit modifications.--
                    ``(A) In general.--No modifications may be made 
                that reduce the rate of future benefit accrual or that 
                reduce core benefits or adjustable benefits unless 
                notice of such reduction has been given at least 180 
                days before the general effective date of such 
                reduction for all participants and beneficiaries to--
                            ``(i) plan participants and beneficiaries;
                            ``(ii) each employer who has an obligation 
                        to contribute to the composite plan; and
                            ``(iii) each employee organization which, 
                        for purposes of collective bargaining, 
                        represents plan participants employed by such 
                        employers.
                    ``(B) Content of notice.--The notice under 
                subparagraph (A) shall contain--
                            ``(i) sufficient information to enable 
                        participants and beneficiaries to understand 
                        the effect of any reduction on their benefits, 
                        including an illustration of any affected 
                        benefit or subsidy, on an annual or monthly 
                        basis that a participant or beneficiary would 
                        otherwise have been eligible for as of the 
                        general effective date described in 
                        subparagraph (A); and
                            ``(ii) information as to the rights and 
                        remedies of plan participants and beneficiaries 
                        as well as how to contact the Department of the 
                        Treasury for further information and 
                        assistance, where appropriate.
                    ``(C) Form and manner.--Any notice under 
                subparagraph (A)--
                            ``(i) shall be provided in a form and 
                        manner prescribed in regulations of the 
                        Secretary of the Treasury; and
                            ``(ii) shall be written in a manner so as 
                        to be understood by the average plan 
                        participant.
            ``(3) Model notices.--The Secretary of the Treasury shall--
                    ``(A) prescribe model notices that the plan sponsor 
                of a composite plan may use to satisfy the notice 
                requirements under this subsection; and
                    ``(B) by regulation enumerate any details related 
                to the elements listed in paragraph (1) that any notice 
                under this subsection must include.
            ``(4) Delivery method.--Any notice under this part shall be 
        provided in writing and may be provided in electronic form to 
        the extent that the form is reasonably accessible to persons to 
        whom the notice is provided.

``SEC. 804. LIMITATION ON INCREASING BENEFITS.

    ``(a) Level of Current Funded Ratios.--Except as provided in 
subsections (c), (d), and (e), no plan amendment increasing benefits or 
establishing new benefits under a composite plan may be adopted for a 
plan year unless--
            ``(1) the plan's current funded ratio is at least 110 
        percent (without regard to the benefit increase or new 
        benefits);
            ``(2) taking the benefit increase or new benefits into 
        account, the current funded ratio is at least 100 percent and 
        the projected funded ratio for the current plan year is at 
        least 120 percent;
            ``(3) in any case in which, after taking the benefit 
        increase or new benefits into account, the current funded ratio 
        is less than 140 percent and the projected funded ratio is less 
        than 140 percent, the benefit increase or new benefits are 
        projected by the plan actuary to increase the present value of 
        the plan's liabilities for the plan year by not more than 3 
        percent; and
            ``(4) expected contributions for the current plan year are 
        at least 120 percent of normal cost for the plan year, 
        determined using the unit credit funding method and treating 
        the benefit increase or new benefits as in effect for the 
        entire plan year.
    ``(b) Additional Requirements Where Core Benefits Reduced.--If a 
plan has been amended to reduce core benefits pursuant to a realignment 
program under section 803(a)(2)(D), such plan may not be subsequently 
amended to increase core benefits unless the amendment--
            ``(1) increases the level of future benefit payments only; 
        and
            ``(2) provides for an equitable distribution of benefit 
        increases across the participant and beneficiary population, 
        taking into account the extent to which the benefits of 
        participants were previously reduced pursuant to such 
        realignment program.
    ``(c) Exception To Comply With Applicable Law.--Subsection (a) 
shall not apply in connection with a plan amendment if the amendment is 
required as a condition of qualification under part I of subchapter D 
of chapter 1 of the Internal Revenue Code of 1986 or to comply with 
other applicable law.
    ``(d) Exception Where Maximum Deductible Limit Applies.--Subsection 
(a) shall not apply in connection with a plan amendment if and to the 
extent that contributions to the composite plan would not be deductible 
for the plan year under section 404(a)(1)(E) of the Internal Revenue 
Code of 1986 if the plan amendment is not adopted.
    ``(e) Exception for Certain Benefit Modifications.--Subsection (a) 
shall not apply in connection with a plan amendment under section 
803(a)(5)(C), regarding conditional benefit modifications.
    ``(f) Treatment of Plan Amendments.--For purposes of this section--
            ``(1) if two or more plan amendments increasing benefits or 
        establishing new benefits are adopted in a plan year, such 
        amendments shall be treated as a single amendment adopted on 
        the last day of the plan year;
            ``(2) all benefit increases and new benefits adopted in a 
        single amendment are treated as a single benefit increase, 
        irrespective of whether the increases and new benefits take 
        effect in more than one plan year; and
            ``(3) increases in contributions or decreases in plan 
        liabilities which are scheduled to take effect in future plan 
        years may be taken into account in connection with a plan 
        amendment if they have been agreed to in writing or otherwise 
        formalized by the date the plan amendment is adopted.

``SEC. 805. COMPOSITE PLAN RESTRICTIONS TO PRESERVE LEGACY PLAN 
              FUNDING.

    ``(a) Treatment as a Legacy Plan.--
            ``(1) In general.--For purposes of this part and parts 2 
        and 3, a defined benefit plan shall be treated as a legacy plan 
        with respect to the composite plan under which employees who 
        were eligible to accrue a benefit under the defined benefit 
        plan become eligible to accrue a benefit under such composite 
        plan.
            ``(2) Component plans.--In any case in which a defined 
        benefit plan is amended to add a composite plan component 
        pursuant to section 801(b), paragraph (1) shall be applied by 
        substituting `defined benefit component' for `defined benefit 
        plan' and `composite plan component' for `composite plan'.
            ``(3) Eligible to accrue a benefit.--For purposes of 
        paragraph (1), an employee is considered eligible to accrue a 
        benefit under a composite plan as of the first day in which the 
        employee completes an hour of service under a collective 
        bargaining agreement that provides for contributions to and 
        accruals under the composite plan in lieu of accruals under the 
        defined benefit plan.
            ``(4) Collective bargaining agreement.--As used in this 
        part, the term `collective bargaining agreement' includes any 
        agreement under which an employer has an obligation to 
        contribute to a plan.
            ``(5) Other terms.--Any term used in this part which is not 
        defined in this part and which is also used in section 305 
        shall have the same meaning provided such term in such section.
    ``(b) Restrictions on Acceptance by Composite Plan of Agreements 
and Contributions.--
            ``(1) In general.--The plan sponsor of a composite plan 
        shall not accept or recognize a collective bargaining agreement 
        (or any modification to such agreement), and no contributions 
        may be accepted and no benefits may be accrued or otherwise 
        earned under the agreement--
                    ``(A) in any case in which the plan actuary of any 
                defined benefit plan that would be treated as a legacy 
                plan with respect to such composite plan has certified 
                under section 305(b)(4) that such defined benefit plan 
                is or will be in endangered or critical status for the 
                plan year in which such agreement would take effect or 
                for any of the succeeding 5 plan years; and
                    ``(B) unless the agreement requires each employer 
                who is a party to such agreement, including employers 
                whose employees are not participants in the legacy 
                plan, to provide contributions to the legacy plan with 
                respect to such composite plan in a manner that 
                satisfies the transition contribution requirements of 
                subsection (d).
            ``(2) Notice.--Not later than 30 days after a determination 
        by a plan sponsor of a composite plan that an agreement fails 
        to satisfy the requirements described in paragraph (1), the 
        plan sponsor shall provide notification of such failure and the 
        reasons for such determination--
                    ``(A) to the parties to the agreement;
                    ``(B) to active participants of the composite plan 
                who have ceased to accrue or otherwise earn benefits 
                with respect to service with an employer pursuant to 
                paragraph (1); and
                    ``(C) to the Secretary, the Secretary of the 
                Treasury, and the Pension Benefit Guaranty Corporation.
            ``(3) Limitation on retroactive effect.--This subsection 
        shall not apply to benefits accrued before the date on which 
        notice is provided under paragraph (2).
    ``(c) Restriction on Accrual of Benefits Under a Composite Plan.--
            ``(1) In general.--In any case in which an employer, under 
        a collective bargaining agreement entered into after the date 
        of enactment of this part, ceases to have an obligation to 
        contribute to a multiemployer defined benefit plan, no 
        employees employed by the employer may accrue or otherwise earn 
        benefits under any composite plan, with respect to service with 
        that employer, for a 60-month period beginning on the date on 
        which the employer entered into such collective bargaining 
        agreement.
            ``(2) Notice of cessation of obligation.--Within 30 days of 
        determining that an employer has ceased to have an obligation 
        to contribute to a legacy plan with respect to employees 
        employed by an employer that is or will be contributing to a 
        composite plan with respect to service of such employees, the 
        plan sponsor of the legacy plan shall notify the plan sponsor 
        of the composite plan of that cessation.
            ``(3) Notice of cessation of accruals.--Not later than 30 
        days after determining that an employer has ceased to have an 
        obligation to contribute to a legacy plan, the plan sponsor of 
        the composite plan shall notify the bargaining parties, the 
        active participants affected by the cessation of accruals, the 
        Secretary, the Secretary of the Treasury, and the Pension 
        Benefit Guaranty Corporation of the cessation of accruals, the 
        period during which such cessation is in effect, and the 
        reasons therefor.
            ``(4) Limitation on retroactive effect.--This subsection 
        shall not apply to benefits accrued before the date on which 
        notice is provided under paragraph (3).
    ``(d) Transition Contribution Requirements.--
            ``(1) In general.--A collective bargaining agreement 
        satisfies the transition contribution requirements of this 
        subsection if the agreement--
                    ``(A) authorizes payment of contributions to a 
                legacy plan at a rate, or multiple rates, as described 
                in paragraph (2)(B), equal to or greater than the 
                transition contribution rate established by the legacy 
                plan under paragraph (2); and
                    ``(B) does not provide for--
                            ``(i) a suspension of contributions to the 
                        legacy plan with respect to any period of 
                        service; or
                            ``(ii) any new direct or indirect exclusion 
                        of younger or newly hired employees of the 
                        employer from being taken into account in 
                        determining contributions owed to the legacy 
                        plan.
            ``(2) Transition contribution rate.--
                    ``(A) In general.--The transition contribution rate 
                for a plan year is the contribution rate that, as 
                certified by the actuary of the legacy plan in 
                accordance with the principles in section 305(b)(4)(B), 
                is reasonably expected to be adequate--
                            ``(i) to fund the normal cost for the plan 
                        year;
                            ``(ii) to amortize the plan's unfunded 
                        liabilities in level annual installments over 
                        25 years, beginning with the plan year in which 
                        the transition contribution rate is first 
                        established; and
                            ``(iii) to amortize any subsequent changes 
                        in the legacy plan's unfunded liability due to 
                        experience gains or losses (including 
                        investment gains or losses, gains or losses due 
                        to contributions greater or less than the 
                        contributions made under the prior transition 
                        contribution rate, and other actuarial gains or 
                        losses), changes in actuarial assumptions, 
                        changes to the legacy plan's benefits, or 
                        changes in funding method over a period of 15 
                        plan years beginning with the plan year 
                        following the plan year in which such change in 
                        unfunded liability is incurred, unless 
                        otherwise prescribed.
                The transition contribution rate for any plan year may 
                not be less than the transition contribution rate for 
                the plan year in which such rate is first established.
                    ``(B) Multiple rates.--If different rates of 
                contribution are payable to the legacy plan by 
                different employers or for different classes of 
                employees, the certification by the actuary of the 
                legacy plan shall specify a transition contribution 
                rate for each such employer or class of employees.
                    ``(C) Rate applicable to employer.--
                            ``(i) In general.--Except as provided by 
                        clause (ii), the transition contribution rate 
                        applicable to an employer for a plan year is 
                        the rate in effect for the plan year of the 
                        legacy plan that commences on or after 180 days 
                        before the earlier of--
                                    ``(I) the effective date of the 
                                collective bargaining agreement 
                                pursuant to which the employer 
                                contributes to the legacy plan; or
                                    ``(II) 5 years after the last plan 
                                year for which the transition 
                                contribution rate applicable to the 
                                employer was established or updated.
                            ``(ii) Exception.--The transition 
                        contribution rate applicable to an employer for 
                        the first plan year beginning on or after the 
                        commencement of the employer's obligation to 
                        contribute to the composite plan is the rate in 
                        effect for the plan year of the legacy plan 
                        that commences on or after 180 days before such 
                        first plan year.
                    ``(D) Effect of legacy plan financial 
                circumstances.--If the plan actuary of the legacy plan 
                has certified under section 305 that the plan is in 
                endangered or critical status for a plan year, the 
                transition contribution rate for the following plan 
                year is the rate determined with respect to the 
                employer under the legacy plan's funding improvement or 
                rehabilitation plan under section 305, if greater than 
                the rate otherwise determined, but in no event shall 
                the transition contribution rate be greater than 75 
                percent of the sum of the contribution rates applicable 
                to the legacy plan and the composite plan for the plan 
                year. Notwithstanding the preceding sentence, if the 
                transition contribution rate in the prior year is more 
                than 75 percent of the sum of the contribution rates 
                applicable to the legacy plan and the composite plan 
                for the prior plan year, the transition contribution 
                rate applicable to the legacy plan shall not be subject 
                to the 75-percent limitation, but shall be neither 
                increased nor reduced as a percentage of the sum of the 
                contribution rates applicable to the legacy plan and 
                the composite plan for the plan year.
                    ``(E) Other actuarial assumptions and methods.--
                Except as provided in subparagraph (A), the 
                determination of the transition contribution rate for a 
                plan year shall be based on actuarial assumptions and 
                methods consistent with the minimum funding 
                determinations made under section 304 (or, if 
                applicable, section 305) with respect to the legacy 
                plan for the plan year.
                    ``(F) Adjustments in rate.--The plan sponsor of a 
                legacy plan from time to time may adjust the transition 
                contribution rate or rates applicable to an employer 
                under this paragraph by increasing some rates and 
                decreasing others if the actuary certifies that such 
                adjusted rates in combination will produce projected 
                contribution income for the plan year beginning on or 
                after the date of certification that is not less than 
                would be produced by the transition contribution rates 
                in effect at the time of the certification.
                    ``(G) Notice of transition contribution rate.--The 
                plan sponsor of a legacy plan shall provide notice to 
                the parties to collective bargaining agreements 
                pursuant to which contributions are made to the legacy 
                plan of changes to the transition contribution rate 
                requirements at least 30 days before the beginning of 
                the plan year for which the rate is effective.
                    ``(H) Notice to composite plan sponsor.--Not later 
                than 30 days after a determination by the plan sponsor 
                of a legacy plan that a collective bargaining agreement 
                provides for a rate of contributions that is below the 
                transition contribution rate applicable to one or more 
                employers that are parties to the collective bargaining 
                agreement, the plan sponsor of the legacy plan shall 
                notify the plan sponsor of any composite plan under 
                which employees of such employer would otherwise be 
                eligible to accrue a benefit.
            ``(3) Correction procedures.--Pursuant to standards 
        prescribed by the Secretary, the plan sponsor of a composite 
        plan shall adopt rules and procedures that give the parties to 
        the collective bargaining agreement notice of the failure of 
        such agreement to satisfy the transition contribution 
        requirements of this subsection, and a reasonable opportunity 
        to correct such failure, not to exceed 180 days from the date 
        of notice given under subsection (b)(2).
            ``(4) Supplemental contributions.--A collective bargaining 
        agreement may provide for supplemental contributions to the 
        legacy plan for a plan year in excess of the transition 
        contribution rate determined under paragraph (2), regardless of 
        whether the legacy plan is in endangered or critical status for 
        such plan year.
    ``(e) Nonapplication of Composite Plan Restrictions.--
            ``(1) In general.--The provisions of subsections (a), (b), 
        and (c) shall not apply with respect to a collective bargaining 
        agreement, to the extent the agreement, or a predecessor 
        agreement, provides or provided for contributions to a defined 
        benefit plan that is a legacy plan, as of the first day of the 
        first plan year following a plan year for which the plan 
        actuary certifies that the plan is fully funded, has been fully 
        funded for at least three out of the immediately preceding 5 
        plan years, and is projected to remain fully funded for at 
        least the following 4 plan years.
            ``(2) Determination of fully funded.--A plan is fully 
        funded for purposes of paragraph (1) if, as of the valuation 
        date of the plan for a plan year, the value of the plan's 
        assets equals or exceeds the present value of the plan's 
        liabilities, determined in accordance with the rules prescribed 
        by the Pension Benefit Guaranty Corporation under sections 
        4219(c)(1)(D) and 4281 for multiemployer plans terminating by 
        mass withdrawal, as in effect for the date of the 
        determination, except the plan's reasonable assumption 
        regarding the starting date of benefits may be used.
            ``(3) Other applicable rules.--Except as provided in 
        paragraph (2), actuarial determinations and projections under 
        this section shall be based on the rules in section 802(b).

``SEC. 806. MERGERS AND ASSET TRANSFERS OF COMPOSITE PLANS.

    ``(a) In General.--Assets and liabilities of a composite plan may 
only be merged with, or transferred to, another plan if--
            ``(1) the other plan is a composite plan;
            ``(2) the plan or plans resulting from the merger or 
        transfer is a composite plan;
            ``(3) no participant's accrued benefit or adjustable 
        benefit is lower immediately after the transaction than it was 
        immediately before the transaction; and
            ``(4) the value of the assets transferred in the case of a 
        transfer reasonably reflects the value of the amounts 
        contributed with respect to the participants whose benefits are 
        being transferred, adjusted for allocable distributions, 
        investment gains and losses, and administrative expenses.
A plan which is not a composite plan may not merge with or transfer 
assets and liabilities to a composite plan.
    ``(b) Legacy Plan.--
            ``(1) In general.--After a merger or transfer involving a 
        composite plan, the legacy plan with respect to an employer 
        that is obligated to contribute to the resulting composite plan 
        is the legacy plan that applied to that employer immediately 
        before the merger or transfer.
            ``(2) Multiple legacy plans.--If an employer is obligated 
        to contribute to more than one legacy plan with respect to 
        employees eligible to accrue benefits under more than one 
        composite plan and there is a merger or transfer of such legacy 
        plans, the transition contribution rate applicable to the 
        legacy plan resulting from the merger or transfer with respect 
        to that employer shall be determined in accordance with the 
        provisions of section 805(d)(2)(B).''.
            (2) Penalties.--
                    (A) Civil enforcement of failure to comply with 
                realignment program.--Section 502(a) of such Act (29 
                U.S.C. 1132(a)) is amended--
                            (i) in paragraph (10), by striking ``or'' 
                        at the end;
                            (ii) in paragraph (11), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(12) in the case of a composite plan required to adopt a 
        realignment program under section 803, if the plan sponsor--
                    ``(A) has not adopted a realignment program under 
                that section by the deadline established in such 
                section; or
                    ``(B) fails to update or comply with the terms of 
                the realignment program in accordance with the 
                requirements of such section,
        by the Secretary, by an employer that has an obligation to 
        contribute with respect to the composite plan, or by an 
        employee organization that represents active participants in 
        the composite plan, for an order compelling the plan sponsor to 
        adopt a realignment program, or to update or comply with the 
        terms of the realignment program, in accordance with the 
        requirements of such section and the realignment program.''.
                    (B) Civil penalties.--Section 502(c) of such Act 
                (29 U.S.C. 1132(c)), as amended by this Act, is further 
                amended--
                            (i) by moving paragraphs (8), (10), and 
                        (12) each 2 ems to the left;
                            (ii) by redesignating paragraphs (9) 
                        through (13) as paragraphs (12) through (16), 
                        respectively; and
                            (iii) by inserting after paragraph (8) the 
                        following:
            ``(9) The Secretary may assess against any plan sponsor of 
        a composite plan a civil penalty of not more than $2,140 per 
        day for each violation by such sponsor--
                    ``(A) of the requirement under section 801(a)(5)(D) 
                to furnish an annual notification to each participant;
                    ``(B) of the requirement under section 802(a) on 
                the plan actuary to certify the plan's current or 
                projected funded ratio by the date specified in such 
                subsection; or
                    ``(C) of the requirement under section 803 to adopt 
                a realignment program by the deadline established in 
                that section and to comply with its terms.
            ``(10)(A) The Secretary may assess against any plan sponsor 
        of a composite plan a civil penalty of not more than $100 per 
        day for each violation by such sponsor of the requirement under 
        section 803(b) to provide notice as described in such section, 
        except that no penalty may be assessed in any case in which the 
        plan sponsor exercised reasonable diligence to meet the 
        requirements of such section and--
                    ``(i) the plan sponsor did not know that the 
                violation existed; or
                    ``(ii) the plan sponsor provided such notice during 
                the 30-day period beginning on the first date on which 
                the plan sponsor knew, or in exercising reasonable due 
                diligence should have known, that such violation 
                existed.
            ``(B) In any case in which the plan sponsor exercised 
        reasonable diligence to meet the requirements of section 
        803(b), the Secretary may waive part or all of such penalty to 
        the extent that the payment of such penalty would be excessive 
        or otherwise inequitable relative to the violation involved.
            ``(11) The Secretary may assess against any plan sponsor of 
        a composite plan a civil penalty of not more than $100 per day 
        for each violation by such sponsor of the notice requirements 
        under sections 801(b)(5) and 805(b)(2).''.
            (3) Authorities.--Section 101(a) of Reorganization Plan No. 
        4 of 1978 (29 U.S.C. 1001 note) is amended by striking ``Parts 
        2 and 3'' and inserting ``Parts 2, 3, and 8''.
            (4) Conforming amendment.--The table of contents in section 
        1 of such Act (29 U.S.C. 1001 note) is amended by inserting 
        after the item relating to section 734 the following:

               ``Part 8--Composite Plans and Legacy Plans

``Sec. 801. Composite plan defined.
``Sec. 802. Funded ratios; actuarial assumptions.
``Sec. 803. Realignment program.
``Sec. 804. Limitation on increasing benefits.
``Sec. 805. Composite plan restrictions to preserve legacy plan 
                            funding.
``Sec. 806. Mergers and asset transfers of composite plans.''.
    (b) Amendment to the Internal Revenue Code of 1986.--
            (1) In general.--Subchapter D of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:

              ``PART IV--COMPOSITE PLANS AND LEGACY PLANS

``Sec. 437. Composite plan defined.
``Sec. 438. Funded ratios; actuarial assumptions.
``Sec. 439. Realignment program.
``Sec. 440. Limitation on increasing benefits.
``Sec. 440A. Composite plan restrictions to preserve legacy plan 
                            funding.
``Sec. 440B. Mergers and asset transfers of composite plans.

``SEC. 437. COMPOSITE PLAN DEFINED.

    ``(a) In General.--For purposes of this title, the term `composite 
plan' means a pension plan--
            ``(1) which is a multiemployer plan that is neither a 
        defined benefit plan nor a defined contribution plan,
            ``(2) the terms of which provide that the plan is a 
        composite plan for purposes of this title with respect to which 
        not more than one multiemployer defined benefit plan is treated 
        as a legacy plan within the meaning of section 440A, unless 
        there is more than one legacy plan following a merger of 
        composite plans under section 440B,
            ``(3) which provides systematically for the payment of 
        benefits--
                    ``(A) objectively calculated pursuant to a 
                nondiscretionary formula specified in the plan document 
                with respect to plan participants for life, and
                    ``(B) in the form of life annuities, except for 
                benefits which under section 411(a)(11) may be 
                immediately distributed without the consent of the 
                participant,
            ``(4) for which the anticipated employer contributions to 
        the plan for the first plan year are at least 120 percent of 
        the normal cost for the plan year,
            ``(5) which requires--
                    ``(A) an annual valuation of the liability of the 
                plan as of a date within the plan year to which the 
                valuation refers or within one month prior to the 
                beginning of such year,
                    ``(B) an annual actuarial determination of the 
                plan's current funded ratio and projected funded ratio 
                under section 438(a),
                    ``(C) corrective action through a realignment 
                program pursuant to section 439 whenever the plan's 
                projected funded ratio is below 120 percent for the 
                plan year, and
                    ``(D) an annual notification to each participant 
                describing benefits under the plan and explaining that 
                such benefits may be subject to reduction under a 
                realignment program pursuant to section 439 based on 
                the plan's funded status in future plan years, and
            ``(6) the board of trustees of which includes at least one 
        retiree or beneficiary in pay status during each plan year 
        following the first plan year in which at least 5 percent of 
        the participants in the plan are retirees or beneficiaries in 
        pay status.
    ``(b) Transition From a Multiemployer Defined Benefit Plan.--
            ``(1) In general.--The plan sponsor of a defined benefit 
        plan that is a multiemployer plan may, subject to paragraph 
        (2), amend the plan to incorporate the features of a composite 
        plan as a component of the multiemployer plan separate from the 
        defined benefit plan component, except in the case of a defined 
        benefit plan for which the plan actuary has certified under 
        section 432(b)(4) that the plan is or will be in endangered or 
        critical status for the plan year in which such amendment would 
        become effective or in endangered or critical status for any of 
        the succeeding 5 plan years.
            ``(2) Requirements.--Any amendment pursuant to paragraph 
        (1) to incorporate the features of a composite plan as a 
        component of a multiemployer plan shall--
                    ``(A) apply with respect to all collective 
                bargaining agreements providing for contributions to 
                the multiemployer plan on or after the effective date 
                of the amendment,
                    ``(B) apply with respect to all participants in the 
                multiemployer plan for whom contributions are made to 
                the multiemployer plan on or after the effective date 
                of the amendment,
                    ``(C) specify that the effective date of the 
                amendment is--
                            ``(i) the first day of a specified plan 
                        year following the date of the adoption of the 
                        amendment, except that the plan sponsor may 
                        alternatively provide for a separate effective 
                        date with respect to each collective bargaining 
                        agreement under which contributions to the 
                        multiemployer plan are required, which shall 
                        occur on the first day of the first plan year 
                        beginning after the termination, or if earlier, 
                        the re-opening, of each such agreement, or such 
                        earlier date as the parties to the agreement 
                        and the plan sponsor of the multiemployer plan 
                        shall agree to, and
                            ``(ii) not later than the first day of the 
                        fifth plan year beginning on or after the date 
                        of the adoption of the amendment,
                    ``(D) specify that, as of the amendment's effective 
                date, no further benefits shall accrue under the 
                defined benefit component of the multiemployer plan, 
                and
                    ``(E) specify that, as of the amendment's effective 
                date, the plan sponsor of the multiemployer plan shall 
                be the plan sponsor of both the composite plan 
                component and the defined benefit plan component of the 
                plan.
            ``(3) Special rules.--If a multiemployer plan is amended 
        pursuant to paragraph (1)--
                    ``(A) the requirements of this title shall be 
                applied to the composite plan component and the defined 
                benefit plan component of the multiemployer plan as if 
                each such component were maintained as a separate plan, 
                and
                    ``(B) the assets of the composite plan component 
                and the defined benefit plan component of the plan 
                shall be held in a single trust forming part of the 
                plan under which the trust instrument expressly 
                provides--
                            ``(i) for separate accounts (and 
                        appropriate records) to be maintained to 
                        reflect the interest which each of the plan 
                        components has in the trust, including separate 
                        accounting for additions to the trust for the 
                        benefit of each plan component, disbursements 
                        made from each plan component's account in the 
                        trust, investment experience of the trust 
                        allocable to that account, and administrative 
                        expenses (whether direct expenses or shared 
                        expenses allocated proportionally), and 
                        permits, but does not require, the pooling of 
                        some or all of the assets of the two plan 
                        components for investment purposes, subject to 
                        the judgment of the plan fiduciaries, and
                            ``(ii) that the assets of each of the two 
                        plan components shall be held, invested, 
                        reinvested, managed, administered and 
                        distributed for the exclusive benefit of the 
                        participants and beneficiaries of each such 
                        plan component, and in no event shall the 
                        assets of one of the plan components be 
                        available to pay benefits due under the other 
                        plan component.
            ``(4) Not a termination event.--Notwithstanding section 
        4041A of the Employee Retirement Income Security Act of 1974, 
        an amendment pursuant to paragraph (1) to incorporate the 
        features of a composite plan as a component of a multiemployer 
        plan does not constitute termination of the multiemployer plan.
            ``(5) Notice to the secretary of labor.--
                    ``(A) Notice.--The plan sponsor of a composite plan 
                shall provide notice to the Secretary of Labor of the 
                intent to establish the composite plan (or, in the case 
                of a composite plan incorporated as a component of a 
                multiemployer plan as described in paragraph (1), the 
                intent to amend the multiemployer plan to incorporate 
                such composite plan) at least 30 days prior to the 
                effective date of such establishment or amendment.
                    ``(B) Certification.--In the case of a composite 
                plan incorporated as a component of a multiemployer 
                plan as described in paragraph (1), such notice shall 
                include a certification by the plan actuary under 
                section 432(b)(4) that the effective date of the 
                amendment occurs in a plan year for which the 
                multiemployer plan is not in endangered or critical 
                status for that plan year and any of the succeeding 5 
                plan years.
            ``(6) References to composite plan component.--As used in 
        this part, the term `composite plan' includes a composite plan 
        component added to a defined benefit plan pursuant to paragraph 
        (1).
            ``(7) Rule of construction.--Paragraph (2)(A) shall not be 
        construed as preventing the plan sponsor of a multiemployer 
        plan from adopting an amendment pursuant to paragraph (1) 
        because some collective bargaining agreements are amended to 
        cease any covered employer's obligation to contribute to the 
        multiemployer plan before or after the plan amendment is 
        effective. Paragraph (2)(B) shall not be construed as 
        preventing the plan sponsor of a multiemployer plan from 
        adopting an amendment pursuant to paragraph (1) because some 
        participants cease to have contributions made to the 
        multiemployer plan on their behalf before or after the plan 
        amendment is effective.
    ``(c) Coordination With Funding Rules.--Except as otherwise 
provided in this part, sections 412, 431, and 432 shall not apply to a 
composite plan.
    ``(d) Treatment of a Composite Plan.--For purposes of this title 
(other than sections 412 and 418E), a composite plan shall be treated 
as if it were a defined benefit plan unless a different treatment is 
provided for under applicable law.

``SEC. 438. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS.

    ``(a) Certification of Funded Ratios.--
            ``(1) In general.--Not later than the one-hundred twentieth 
        day of each plan year of a composite plan, the plan actuary of 
        the composite plan shall certify to the Secretary, the 
        Secretary of Labor, and the plan sponsor the plan's current 
        funded ratio and projected funded ratio for the plan year.
            ``(2) Determination of current funded ratio and projected 
        funded ratio.--For purposes of this section--
                    ``(A) Current funded ratio.--The current funded 
                ratio is the ratio (expressed as a percentage) of--
                            ``(i) the value of the plan's assets as of 
                        the first day of the plan year, to
                            ``(ii) the plan actuary's calculation of 
                        the present value of the plan liabilities as of 
                        the first day of the plan year.
                    ``(B) Projected funded ratio.--The projected funded 
                ratio is the funded ratio determined under subparagraph 
                (A), projected as of the first day of the fifteenth 
                plan year following the plan year for which the 
                determination is being made.
            ``(3) Consideration of contribution rate increases.--For 
        purposes of projections under this subsection, the plan actuary 
        may anticipate contribution rate increases beyond the term of 
        the current collective bargaining agreement and any agreed-to 
        supplements, if reasonable, not to exceed 2.5 percent per year, 
        compounded annually.
    ``(b) Actuarial Assumptions and Methods.--For purposes of this 
part--
            ``(1) In general.--All costs, liabilities, rates of 
        interest, and other factors under the plan shall be determined 
        for a plan year on the basis of actuarial assumptions and 
        methods--
                    ``(A) each of which is reasonable (taking into 
                account the experience of the plan and reasonable 
                expectations),
                    ``(B) which, in combination, offer the actuary's 
                best estimate of anticipated experience under the plan, 
                and
                    ``(C) with respect to which any change from the 
                actuarial assumptions and methods used in the previous 
                plan year shall be certified by the plan actuary and 
                the actuarial rationale for such change provided in the 
                annual report required by section 6058.
            ``(2) Fair market value of assets.--The value of the plan's 
        assets shall be taken into account on the basis of their fair 
        market value.
            ``(3) Determination of normal cost and plan liabilities.--A 
        plan's normal cost and liabilities shall be based on--
                    ``(A) the most recent actuarial valuation required 
                under section 437(a)(5)(A) and the unit credit funding 
                method, and
                    ``(B) rates of interest subject to section 
                431(b)(6).
            ``(4) Time when certain contributions deemed made.--Any 
        contributions for a plan year made by an employer after the 
        last day of such plan year, but not later than 2\1/2\ months 
        after such day, shall be deemed to have been made on such last 
        day. For purposes of this paragraph, such 2\1/2\-month period 
        may be extended to a total of not more than 120 days under 
        regulations prescribed by the Secretary.
            ``(5) Additional actuarial assumptions.--Except where 
        otherwise provided in this part, the provisions of section 
        432(b)(4)(B) shall apply to any determination or projection 
        under this part.

``SEC. 439. REALIGNMENT PROGRAM.

    ``(a) Realignment Program.--
            ``(1) Adoption.--In any case in which the plan actuary 
        certifies under section 438(a) that the plan's projected funded 
        ratio is below 120 percent for the plan year, the plan sponsor 
        shall adopt a realignment program under paragraph (2) not later 
        than 210 days after the due date of the certification required 
        under section 438(a). The plan sponsor shall adopt an updated 
        realignment program for each succeeding plan year for which a 
        certification described in the preceding sentence is made.
            ``(2) Content of realignment program.--
                    ``(A) In general.--A realignment program adopted 
                under this paragraph is a written program which 
                consists of reasonable measures, including options or a 
                range of options to be undertaken by the plan sponsor 
                or proposed to the bargaining parties, formulated, 
                based on reasonably anticipated experience and 
                reasonable actuarial assumptions, to enable the plan to 
                achieve a projected funded ratio of at least 120 
                percent for the following plan year.
                    ``(B) Initial program elements.--Reasonable 
                measures under a realignment program described in 
                subparagraph (A) may include any of the following:
                            ``(i) Proposed contribution increases.
                            ``(ii) A reduction in the rate of future 
                        benefit accruals, so long as the resulting rate 
                        shall not be less than 1 percent of the 
                        contributions on which benefits are based as of 
                        the start of the plan year (or the equivalent 
                        standard accrual rate as described in section 
                        432(f)(6)).
                            ``(iii) A modification or elimination of 
                        adjustable benefits of participants that are 
                        not in pay status before the date of the notice 
                        required under subsection (b)(1).
                            ``(iv) Any other legally available measures 
                        not specifically described in this subparagraph 
                        or subparagraph (C) or (D) that the plan 
                        sponsor determines are reasonable.
                    ``(C) Additional program elements.--If the plan 
                sponsor has determined that all reasonable measures 
                available under subparagraph (B) will not enable the 
                plan to achieve a projected funded ratio of at least 
                120 percent the following plan year, such realignment 
                program may also include--
                            ``(i) a reduction of accrued benefits that 
                        are not in pay status by the date of the notice 
                        required under subsection (b)(1), or
                            ``(ii) a reduction of any benefits of 
                        participants that are in pay status before the 
                        date of the notice required under subsection 
                        (b)(1) other than core benefits as defined in 
                        paragraph (4).
                    ``(D) Additional reductions.--In the case of a 
                composite plan for which the plan sponsor has 
                determined that all reasonable measures available under 
                subparagraphs (B) and (C) will not enable the plan to 
                achieve a projected funded ratio of at least 120 
                percent for the following plan year, the realignment 
                program may also include--
                            ``(i) a further reduction in the rate of 
                        future benefit accruals without regard to the 
                        limitation applicable under subparagraph 
                        (B)(ii), or
                            ``(ii) a reduction of core benefits,
                provided that such reductions shall be equitably 
                distributed across the participant and beneficiary 
                population, taking into account factors, with respect 
                to participants and beneficiaries and their benefits, 
                that may include one or more of the factors listed in 
                subclauses (I) through (X) of section 432(f)(9)(D)(vi), 
                to the extent necessary to enable the plan to achieve a 
                projected funded ratio of at least 120 percent for the 
                following plan year.
            ``(3) Adjustable benefit defined.--For purposes of this 
        part, the term `adjustable benefit' means--
                    ``(A) benefits, rights, and features under the 
                plan, including post-retirement death benefits, 
                disability benefits not yet in pay status, and similar 
                benefits,
                    ``(B) any early retirement benefit or retirement-
                type subsidy (within the meaning of section 
                411(d)(6)(B)(i)) (including early reduction factors 
                which are not provided on an actuarially equivalent 
                basis) and any benefit payment option (other than the 
                qualified joint and survivor annuity),
                    ``(C) benefit increases which were adopted (or, if 
                later, took effect) less than 120 months before the 
                first day of the first plan year in which such 
                realignment program took effect,
                    ``(D) any one-time bonus payment or `thirteenth 
                check' provision, and
                    ``(E) benefits granted for period of service prior 
                to participation in the plan.
            ``(4) Core benefit defined.--For purposes of this part, the 
        term `core benefit' means a participant's accrued benefit 
        payable in the normal form of an annuity commencing at normal 
        retirement age, determined without regard to--
                    ``(A) any early retirement benefits, retirement-
                type subsidies, or other benefits, rights, or features 
                that may be associated with that benefit, and
                    ``(B) any cost-of-living adjustments or benefit 
                increases effective after the date of retirement.
            ``(5) Coordination with contribution increases.--
                    ``(A) In general.--A realignment program may 
                provide that some or all of the benefit modifications 
                described in the program will only take effect if the 
                bargaining parties fail to agree to specified levels of 
                increases in contributions to the plan, effective as of 
                specified dates.
                    ``(B) Independent benefit modifications.--If a 
                realignment program adopts any changes to the benefit 
                formula that are independent of potential contribution 
                increases, such changes shall take effect not later 
                than 180 days following the first day of the first plan 
                year that begins following the adoption of the 
                realignment program.
                    ``(C) Conditional benefit modifications.--If a 
                realignment program adopts any changes to the benefit 
                formula that take effect only if the bargaining parties 
                fail to agree to contribution increases, such changes 
                shall take effect not later than the first day of the 
                first plan year beginning after the third anniversary 
                of the date of adoption of the realignment program.
                    ``(D) Revocation of certain benefit 
                modifications.--Benefit modifications described in 
                paragraph (3) may be revoked, in whole or in part, and 
                retroactively or prospectively, when contributions to 
                the plan are increased, as specified in the realignment 
                program, including any amendments thereto. The 
                preceding sentence shall not apply unless the 
                contribution increases are to be effective not later 
                than the fifth anniversary of the first day of the 
                first plan year that begins after the adoption of the 
                realignment program.
    ``(b) Notice.--
            ``(1) In general.--In any case in which it is certified 
        under section 438(a) that the projected funded ratio is less 
        than 120 percent, the plan sponsor shall, not later than 30 
        days after the date of the certification, provide notification 
        of the current and projected funded ratios to the participants 
        and beneficiaries, the bargaining parties, the Secretary of 
        Labor, and the Secretary. Such notice shall include--
                    ``(A) an explanation that contribution rate 
                increases or benefit reductions may be necessary,
                    ``(B) a description of the types of benefits that 
                might be reduced, and
                    ``(C) an estimate of the contribution increases and 
                benefit reductions that may be necessary to achieve a 
                projected funded ratio of 120 percent.
            ``(2) Notice of benefit modifications.--
                    ``(A) In general.--No modifications may be made 
                that reduce the rate of future benefit accrual or that 
                reduce core benefits or adjustable benefits unless 
                notice of such reduction has been given at least 180 
                days before the general effective date of such 
                reduction for all participants and beneficiaries to--
                            ``(i) plan participants and beneficiaries,
                            ``(ii) each employer who has an obligation 
                        to contribute to the composite plan, and
                            ``(iii) each employee organization which, 
                        for purposes of collective bargaining, 
                        represents plan participants employed by such 
                        employers.
                    ``(B) Content of notice.--The notice under 
                subparagraph (A) shall contain--
                            ``(i) sufficient information to enable 
                        participants and beneficiaries to understand 
                        the effect of any reduction on their benefits, 
                        including an illustration of any affected 
                        benefit or subsidy, on an annual or monthly 
                        basis that a participant or beneficiary would 
                        otherwise have been eligible for as of the 
                        general effective date described in 
                        subparagraph (A), and
                            ``(ii) information as to the rights and 
                        remedies of plan participants and beneficiaries 
                        as well as how to contact the Department of the 
                        Treasury for further information and 
                        assistance, where appropriate.
                    ``(C) Form and manner.--Any notice under 
                subparagraph (A)--
                            ``(i) shall be provided in a form and 
                        manner prescribed in regulations of the 
                        Secretary, and
                            ``(ii) shall be written in a manner so as 
                        to be understood by the average plan 
                        participant.
            ``(3) Model notices.--The Secretary shall--
                    ``(A) prescribe model notices that the plan sponsor 
                of a composite plan may use to satisfy the notice 
                requirements under this subsection, and
                    ``(B) by regulation enumerate any details related 
                to the elements listed in paragraph (1) that any notice 
                under this subsection must include.
            ``(4) Delivery method.--Any notice under this part shall be 
        provided in writing and may be provided in electronic form to 
        the extent that the form is reasonably accessible to persons to 
        whom the notice is provided.

``SEC. 440. LIMITATION ON INCREASING BENEFITS.

    ``(a) Level of Current Funded Ratios.--Except as provided in 
subsections (c), (d), and (e), no plan amendment increasing benefits or 
establishing new benefits under a composite plan may be adopted for a 
plan year unless--
            ``(1) the plan's current funded ratio is at least 110 
        percent (without regard to the benefit increase or new 
        benefits),
            ``(2) taking the benefit increase or new benefits into 
        account, the current funded ratio is at least 100 percent and 
        the projected funded ratio for the current plan year is at 
        least 120 percent,
            ``(3) in any case in which, after taking the benefit 
        increase or new benefits into account, the current funded ratio 
        is less than 140 percent or the projected funded ratio is less 
        than 140 percent, the benefit increase or new benefits are 
        projected by the plan actuary to increase the present value of 
        the plan's liabilities for the plan year by not more than 3 
        percent, and
            ``(4) expected contributions for the current plan year are 
        at least 120 percent of normal cost for the plan year, 
        determined using the unit credit funding method and treating 
        the benefit increase or new benefits as in effect for the 
        entire plan year.
    ``(b) Additional Requirements Where Core Benefits Reduced.--If a 
plan has been amended to reduce core benefits pursuant to a realignment 
program under section 439(a)(2)(D), such plan may not be subsequently 
amended to increase core benefits unless the amendment--
            ``(1) increases the level of future benefit payments only, 
        and
            ``(2) provides for an equitable distribution of benefit 
        increases across the participant and beneficiary population, 
        taking into account the extent to which the benefits of 
        participants were previously reduced pursuant to such 
        realignment program.
    ``(c) Exception To Comply With Applicable Law.--Subsection (a) 
shall not apply in connection with a plan amendment if the amendment is 
required as a condition of qualification under part I of subchapter D 
of chapter 1 or to comply with other applicable law.
    ``(d) Exception Where Maximum Deductible Limit Applies.--Subsection 
(a) shall not apply in connection with a plan amendment if and to the 
extent that contributions to the composite plan would not be deductible 
for the plan year under section 404(a)(1)(E) if the plan amendment is 
not adopted. The Secretary of the Treasury shall issue regulations to 
implement this paragraph.
    ``(e) Exception for Certain Benefit Modifications.--Subsection (a) 
shall not apply in connection with a plan amendment under section 
439(a)(5)(C), regarding conditional benefit modifications.
    ``(f) Treatment of Plan Amendments.--For purposes of this section--
            ``(1) if two or more plan amendments increasing benefits or 
        establishing new benefits are adopted in a plan year, such 
        amendments shall be treated as a single amendment adopted on 
        the last day of the plan year,
            ``(2) all benefit increases and new benefits adopted in a 
        single amendment are treated as a single benefit increase, 
        irrespective of whether the increases and new benefits take 
        effect in more than one plan year, and
            ``(3) increases in contributions or decreases in plan 
        liabilities which are scheduled to take effect in future plan 
        years may be taken into account in connection with a plan 
        amendment if they have been agreed to in writing or otherwise 
        formalized by the date the plan amendment is adopted.

``SEC. 440A. COMPOSITE PLAN RESTRICTIONS TO PRESERVE LEGACY PLAN 
              FUNDING.

    ``(a) Treatment as a Legacy Plan.--
            ``(1) In general.--For purposes of this subchapter, a 
        defined benefit plan shall be treated as a legacy plan with 
        respect to the composite plan under which employees who were 
        eligible to accrue a benefit under the defined benefit plan 
        become eligible to accrue a benefit under such composite plan.
            ``(2) Component plans.--In any case in which a defined 
        benefit plan is amended to add a composite plan component 
        pursuant to section 437(b), paragraph (1) shall be applied by 
        substituting `defined benefit component' for `defined benefit 
        plan' and `composite plan component' for `composite plan'.
            ``(3) Eligible to accrue a benefit.--For purposes of 
        paragraph (1), an employee is considered eligible to accrue a 
        benefit under a composite plan as of the first day in which the 
        employee completes an hour of service under a collective 
        bargaining agreement that provides for contributions to and 
        accruals under the composite plan in lieu of accruals under the 
        defined benefit plan.
            ``(4) Collective bargaining agreement.--As used in this 
        part, the term `collective bargaining agreement' includes any 
        agreement under which an employer has an obligation to 
        contribute to a plan.
            ``(5) Other terms.--Any term used in this part which is not 
        defined in this part and which is also used in section 432 
        shall have the same meaning provided such term in such section.
    ``(b) Restrictions on Acceptance by Composite Plan of Agreements 
and Contributions.--
            ``(1) In general.--The plan sponsor of a composite plan 
        shall not accept or recognize a collective bargaining agreement 
        (or any modification to such agreement), and no contributions 
        may be accepted and no benefits may be accrued or otherwise 
        earned under the agreement--
                    ``(A) in any case in which the plan actuary of any 
                defined benefit plan that would be treated as a legacy 
                plan with respect to such composite plan has certified 
                under section 432(b)(4) that such defined benefit plan 
                is or will be in endangered or critical status for the 
                plan year in which such agreement would take effect or 
                for any of the succeeding 5 plan years, and
                    ``(B) unless the agreement requires each employer 
                who is a party to such agreement, including employers 
                whose employees are not participants in the legacy 
                plan, to provide contributions to the legacy plan with 
                respect to such composite plan in a manner that 
                satisfies the transition contribution requirements of 
                subsection (d).
            ``(2) Notice.--Not later than 30 days after a determination 
        by a plan sponsor of a composite plan that an agreement fails 
        to satisfy the requirements described in paragraph (1), the 
        plan sponsor shall provide notification of such failure and the 
        reasons for such determination to--
                    ``(A) the parties to the agreement,
                    ``(B) active participants of the composite plan who 
                have ceased to accrue or otherwise earn benefits with 
                respect to service with an employer pursuant to 
                paragraph (1), and
                    ``(C) the Secretary of Labor, the Secretary of the 
                Treasury, and the Pension Benefit Guaranty Corporation.
            ``(3) Limitation on retroactive effect.--This subsection 
        shall not apply to benefits accrued before the date on which 
        notice is provided under paragraph (2).
    ``(c) Restriction on Accrual of Benefits Under a Composite Plan.--
            ``(1) In general.--In any case in which an employer, under 
        a collective bargaining agreement entered into after the date 
        of enactment of the Chris Allen Multiemployer Pension 
        Recapitalization and Reform Act of 2021, ceases to have an 
        obligation to contribute to a multiemployer defined benefit 
        plan, no employees employed by the employer may accrue or 
        otherwise earn benefits under any composite plan, with respect 
        to service with that employer, for a 60-month period beginning 
        on the date on which the employer entered into such collective 
        bargaining agreement.
            ``(2) Notice of cessation of obligation.--Within 30 days of 
        determining that an employer has ceased to have an obligation 
        to contribute to a legacy plan with respect to employees 
        employed by an employer that is or will be contributing to a 
        composite plan with respect to service of such employees, the 
        plan sponsor of the legacy plan shall notify the plan sponsor 
        of the composite plan of that cessation.
            ``(3) Notice of cessation of accruals.--Not later than 30 
        days after determining that an employer has ceased to have an 
        obligation to contribute to a legacy plan, the plan sponsor of 
        the composite plan shall notify the bargaining parties, the 
        active participants affected by the cessation of accruals, the 
        Secretary, the Secretary of Labor, and the Pension Benefit 
        Guaranty Corporation of the cessation of accruals, the period 
        during which such cessation is in effect, and the reasons 
        therefor.
            ``(4) Limitation on retroactive effect.--This subsection 
        shall not apply to benefits accrued before the date on which 
        notice is provided under paragraph (3).
    ``(d) Transition Contribution Requirements.--
            ``(1) In general.--A collective bargaining agreement 
        satisfies the transition contribution requirements of this 
        subsection if the agreement--
                    ``(A) authorizes for payment of contributions to a 
                legacy plan at a rate, or multiple rates, as described 
                in paragraph (2)(B), equal to or greater than the 
                transition contribution rate established under 
                paragraph (2), and
                    ``(B) does not provide for--
                            ``(i) a suspension of contributions to the 
                        legacy plan with respect to any period of 
                        service, or
                            ``(ii) any new direct or indirect exclusion 
                        of younger or newly hired employees of the 
                        employer from being taken into account in 
                        determining contributions owed to the legacy 
                        plan.
            ``(2) Transition contribution rate.--
                    ``(A) In general.--The transition contribution rate 
                for a plan year is the contribution rate that, as 
                certified by the actuary of the legacy plan in 
                accordance with the principles in section 432(b)(4)(B), 
                is reasonably expected to be adequate--
                            ``(i) to fund the normal cost for the plan 
                        year,
                            ``(ii) to amortize the plan's unfunded 
                        liabilities in level annual installments over 
                        25 years, beginning with the plan year in which 
                        the transition contribution rate is first 
                        established, and
                            ``(iii) to amortize any subsequent changes 
                        in the legacy plan's unfunded liability due to 
                        experience gains or losses (including 
                        investment gains or losses, gains or losses due 
                        to contributions greater or less than the 
                        contributions made under the prior transition 
                        contribution rate, and other actuarial gains or 
                        losses), changes in actuarial assumptions, 
                        changes to the legacy plan's benefits, or 
                        changes in funding method over a period of 15 
                        plan years beginning with the plan year 
                        following the plan year in which such change in 
                        unfunded liability is incurred, unless 
                        otherwise prescribed.
                The transition contribution rate for any plan year may 
                not be less than the transition contribution rate for 
                the plan year in which such rate is first established.
                    ``(B) Multiple rates.--If different rates of 
                contribution are payable to the legacy plan by 
                different employers or for different classes of 
                employees, the certification by the actuary of the 
                legacy plan shall specify a transition contribution 
                rate for each such employer or class of employees.
                    ``(C) Rate applicable to employer.--
                            ``(i) In general.--Except as provided by 
                        clause (ii), the transition contribution rate 
                        applicable to an employer for a plan year is 
                        the rate in effect for the plan year of the 
                        legacy plan that commences on or after 180 days 
                        before the earlier of--
                                    ``(I) the effective date of the 
                                collective bargaining agreement 
                                pursuant to which the employer 
                                contributes to the legacy plan, or
                                    ``(II) 5 years after the last plan 
                                year for which the transition 
                                contribution rate applicable to the 
                                employer was established or updated.
                            ``(ii) Exception.--The transition 
                        contribution rate applicable to an employer for 
                        the first plan year beginning on or after the 
                        commencement of the employer's obligation to 
                        contribute to the composite plan is the rate in 
                        effect for the plan year of the legacy plan 
                        that commences on or after 180 days before such 
                        first plan year.
                    ``(D) Effect of legacy plan financial 
                circumstances.--If the plan actuary of the legacy plan 
                has certified under section 432 that the plan is in 
                endangered or critical status for a plan year, the 
                transition contribution rate for the following plan 
                year is the rate determined with respect to the 
                employer under the legacy plan's funding improvement or 
                rehabilitation plan under section 432, if greater than 
                the rate otherwise determined, but in no event shall 
                the transition contribution rate be greater than 75 
                percent of the sum of the contribution rates applicable 
                to the legacy plan and the composite plan for the plan 
                year. Notwithstanding the preceding sentence, if the 
                transition contribution rate in the prior year is more 
                than 75 percent of the sum of the contribution rates 
                applicable to the legacy plan and the composite plan 
                for the prior plan year, the transition contribution 
                rate applicable to the legacy plan shall not be subject 
                to the 75-percent limitation, but shall be neither 
                increased nor reduced as a percentage of the sum of the 
                contribution rates applicable to the legacy plan and 
                the composite plan for the plan year.
                    ``(E) Other actuarial assumptions and methods.--
                Except as provided in subparagraph (A), the 
                determination of the transition contribution rate for a 
                plan year shall be based on actuarial assumptions and 
                methods consistent with the minimum funding 
                determinations made under section 431 (or, if 
                applicable, section 432) with respect to the legacy 
                plan for the plan year.
                    ``(F) Adjustments in rate.--The plan sponsor of a 
                legacy plan from time to time may adjust the transition 
                contribution rate or rates applicable to an employer 
                under this paragraph by increasing some rates and 
                decreasing others if the actuary certifies that such 
                adjusted rates in combination will produce projected 
                contribution income for the plan year beginning on or 
                after the date of certification that is not less than 
                would be produced by the transition contribution rates 
                in effect at the time of the certification.
                    ``(G) Notice of transition contribution rate.--The 
                plan sponsor of a legacy plan shall provide notice to 
                the parties to collective bargaining agreements 
                pursuant to which contributions are made to the legacy 
                plan of changes to the transition contribution rate 
                requirements at least 30 days before the beginning of 
                the plan year for which the rate is effective.
                    ``(H) Notice to composite plan sponsor.--Not later 
                than 30 days after a determination by the plan sponsor 
                of a legacy plan that a collective bargaining agreement 
                provides for a rate of contributions that is below the 
                transition contribution rate applicable to one or more 
                employers that are parties to the collective bargaining 
                agreement, the plan sponsor of the legacy plan shall 
                notify the plan sponsor of any composite plan under 
                which employees of such employer would otherwise be 
                eligible to accrue a benefit.
            ``(3) Correction procedures.--Pursuant to standards 
        prescribed by the Secretary of Labor, the plan sponsor of a 
        composite plan shall adopt rules and procedures that give the 
        parties to the collective bargaining agreement notice of the 
        failure of such agreement to satisfy the transition 
        contribution requirements of this subsection, and a reasonable 
        opportunity to correct such failure, not to exceed 180 days 
        from the date of notice given under subsection (b)(2).
            ``(4) Supplemental contributions.--A collective bargaining 
        agreement may provide for supplemental contributions to the 
        legacy plan for a plan year in excess of the transition 
        contribution rate determined under paragraph (2), regardless of 
        whether the legacy plan is in endangered or critical status for 
        such plan year.
    ``(e) Nonapplication of Composite Plan Restrictions.--
            ``(1) In general.--The provisions of subsections (a), (b), 
        and (c) shall not apply with respect to a collective bargaining 
        agreement, to the extent the agreement, or a predecessor 
        agreement, provides or provided for contributions to a defined 
        benefit plan that is a legacy plan, as of the first day of the 
        first plan year following a plan year for which the plan 
        actuary certifies that the plan is fully funded, has been fully 
        funded for at least three out of the immediately preceding 5 
        plan years, and is projected to remain fully funded for at 
        least the following 4 plan years.
            ``(2) Determination of fully funded.--A plan is fully 
        funded for purposes of paragraph (1) if, as of the valuation 
        date of the plan for a plan year, the value of the plan's 
        assets equals or exceeds the present value of the plan's 
        liabilities, determined in accordance with the rules prescribed 
        by the Pension Benefit Guaranty Corporation under sections 
        4219(c)(1)(D) and 4281 of Employee Retirement Income and 
        Security Act for multiemployer plans terminating by mass 
        withdrawal, as in effect for the date of the determination, 
        except the plan's reasonable assumption regarding the starting 
        date of benefits may be used.
            ``(3) Other applicable rules.--Except as provided in 
        paragraph (2), actuarial determinations and projections under 
        this section shall be based on the rules in section 438(b).

``SEC. 440B. MERGERS AND ASSET TRANSFERS OF COMPOSITE PLANS.

    ``(a) In General.--Assets and liabilities of a composite plan may 
only be merged with, or transferred to, another plan if--
            ``(1) the other plan is a composite plan,
            ``(2) the plan or plans resulting from the merger or 
        transfer is a composite plan,
            ``(3) no participant's accrued benefit or adjustable 
        benefit is lower immediately after the transaction than it was 
        immediately before the transaction, and
            ``(4) the value of the assets transferred in the case of a 
        transfer reasonably reflects the value of the amounts 
        contributed with respect to the participants whose benefits are 
        being transferred, adjusted for allocable distributions, 
        investment gains and losses, and administrative expenses.
A plan which is not a composite plan may not merge with or transfer 
assets and liabilities to a composite plan.
    ``(b) Legacy Plan.--
            ``(1) In general.--After a merger or transfer involving a 
        composite plan, the legacy plan with respect to an employer 
        that is obligated to contribute to the resulting composite plan 
        is the legacy plan that applied to that employer immediately 
        before the merger or transfer.
            ``(2) Multiple legacy plans.--If an employer is obligated 
        to contribute to more than one legacy plan with respect to 
        employees eligible to accrue benefits under more than one 
        composite plan and there is a merger or transfer of such legacy 
        plans, the transition contribution rate applicable to the 
        legacy plan resulting from the merger or transfer with respect 
        to that employer shall be determined in accordance with the 
        provisions of section 440A(d)(2)(B).''.
            (2) Clerical amendment.--The table of parts for subchapter 
        D of chapter 1 of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following new item:

             ``Part IV--Composite Plans and Legacy Plans''.

    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 502. APPLICATION OF CERTAIN REQUIREMENTS TO COMPOSITE PLANS.

    (a) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) Treatment for purposes of funding notices.--Section 
        101(f) of the Employee Retirement Income Security Act of 1974 
        (29 U.S.C. 1021(f)), as amended by this Act, is further 
        amended--
                    (A) in paragraph (1) by striking ``title IV 
                applies'' and inserting ``title IV applies or which is 
                a composite plan''; and
                    (B) by adding at the end the following:
            ``(5) Application to composite plans.--The provisions of 
        this subsection shall apply to a composite plan only to the 
        extent prescribed by the Secretary in regulations that take 
        into account the differences between a composite plan and a 
        defined benefit plan that is a multiemployer plan.''.
            (2) Treatment for purposes of annual report.--Section 103 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1023) is amended--
                    (A) in subsection (d) by adding at the end the 
                following sentence: ``The provisions of this subsection 
                shall apply to a composite plan only to the extent 
                prescribed by the Secretary in regulations that take 
                into account the differences between a composite plan 
                and a defined benefit plan that is a multiemployer 
                plan.'';
                    (B) in subsection (f) by adding at the end the 
                following:
            ``(3) Additional information for composite plans.--With 
        respect to any composite plan--
                    ``(A) the provisions of paragraph (1)(A) shall 
                apply by substituting `current funded ratio and 
                projected funded ratio (as such terms are defined in 
                section 802(a)(2))' for `funded percentage' each place 
                it appears; and
                    ``(B) the provisions of paragraph (2) shall apply 
                only to the extent prescribed by the Secretary in 
                regulations that take into account the differences 
                between a composite plan and a defined benefit plan 
                that is a multiemployer plan.''; and
                    (C) by adding at the end the following:
    ``(h) Composite Plans.--A multiemployer plan that incorporates the 
features of a composite plan as provided in section 801(b) shall be 
treated as a single plan for purposes of the report required by this 
section, except that separate financial statements and actuarial 
statements shall be provided under paragraphs (3) and (4) of subsection 
(a) for the defined benefit plan component and for the composite plan 
component of the multiemployer plan.''.
            (3) Treatment for purposes of pension benefit statements.--
        Section 105(a) of the Employee Retirement Income Security Act 
        of 1974 (29 U.S.C. 1025(a)) is amended by adding at the end the 
        following:
            ``(4) Composite plans.--For purposes of this subsection, a 
        composite plan shall be treated as a defined benefit plan to 
        the extent prescribed by the Secretary in regulations that take 
        into account the differences between a composite plan and a 
        defined benefit plan that is a multiemployer plan.''.
    (b) Amendments to the Internal Revenue Code of 1986.--Section 6058 
of the Internal Revenue Code of 1986 is amended by redesignating 
subsection (f) as subsection (g) and by inserting after subsection (e) 
the following:
    ``(f) Composite Plans.--A multiemployer plan that incorporates the 
features of a composite plan as provided in section 437(b) shall be 
treated as a single plan for purposes of the return required by this 
section, except that separate financial statements shall be provided 
for the defined benefit plan component and for the composite plan 
component of the multiemployer plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 503. TREATMENT OF COMPOSITE PLANS UNDER TITLE IV.

    (a) Definition.--Section 4001(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1301(a)) is amended by striking the 
period at the end of paragraph (21) and inserting a semicolon and by 
adding at the end the following:
            ``(22) Composite plan.--The term `composite plan' has the 
        meaning set forth in section 801.''.
    (b) Composite Plans Disregarded for Calculating Premiums.--Section 
4006(a) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)) is amended by adding at the end the following:
            ``(9) The composite plan component of a multiemployer plan 
        shall be disregarded in determining the premiums due under this 
        section from the multiemployer plan.''.
    (c) Composite Plans Not Covered.--Section 4021(b)(1) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1321(b)(1)) 
is amended by striking ``Act'' and inserting ``Act, or a composite 
plan, as defined in paragraph (43) of section 3 of this Act''.
    (d) No Withdrawal Liability.--Section 4201 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1381) is amended by 
adding at the end the following:
    ``(c) Contributions by an employer to the composite plan component 
of a multiemployer plan shall not be taken into account for any purpose 
under this title.''.
    (e) No Withdrawal Liability for Certain Plans.--Section 4201 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381) is 
further amended by adding at the end the following:
    ``(d) Contributions by an employer to a multiemployer plan 
described in the except clause of section 3(35) of this Act pursuant to 
a collective bargaining agreement that specifically designates that 
such contributions shall be allocated to the separate defined 
contribution accounts of participants under the plan shall not be taken 
into account with respect to the defined benefit portion of the plan 
for any purpose under this title (including the determination of the 
employer's highest contribution rate under section 4219), even if, 
under the terms of the plan, participants have the option to transfer 
assets in their separate defined contribution accounts to the defined 
benefit portion of the plan in return for service credit under the 
defined benefit portion, at rates established by the plan sponsor.
    ``(e) A legacy plan created under section 805 shall be deemed to 
have no unfunded vested benefits for purposes of this part, for each 
plan year following a period of 5 consecutive plan years for which--
            ``(1) the plan was fully funded within the meaning of 
        section 805 for at least 3 of the plan years during that 
        period, ending with a plan year for which the plan is fully 
        funded;
            ``(2) the plan had no unfunded vested benefits for at least 
        3 of the plan years during that period, ending with a plan year 
        for which the plan is fully funded; and
            ``(3) the plan is projected to be fully funded and to have 
        no unfunded vested benefits for the following four plan 
        years.''.
    (f) No Withdrawal Liability for Employers Contributing to Certain 
Fully Funded Legacy Plans.--Section 4211 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1382) is amended by adding at 
the end the following:
    ``(g) Legacy Plans.--No amount of unfunded vested benefits shall be 
allocated to an employer that has an obligation to contribute to a 
legacy plan described in subsection (e) of section 4201 for each plan 
year for which such subsection applies.''.
    (g) No Obligation To Contribute.--Section 4212 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1392) is amended by 
adding at the end the following:
    ``(d) No Obligation To Contribute.--An employer shall not be 
treated as having an obligation to contribute to a multiemployer 
defined benefit plan within the meaning of subsection (a) solely 
because--
            ``(1) in the case of a multiemployer plan that includes a 
        composite plan component, the employer has an obligation to 
        contribute to the composite plan component of the plan;
            ``(2) the employer has an obligation to contribute to a 
        composite plan that is maintained pursuant to one or more 
        collective bargaining agreements under which the multiemployer 
        defined benefit plan is or previously was maintained; or
            ``(3) the employer contributes or has contributed under 
        section 805(d) to a legacy plan associated with a composite 
        plan pursuant to a collective bargaining agreement but 
        employees of that employer were not eligible to accrue benefits 
        under the legacy plan with respect to service with that 
        employer.''.
    (h) No Inference.--Nothing in the amendment made by subsection (e) 
shall be construed to create an inference with respect to the treatment 
under title IV of the Employee Retirement Income Security Act of 1974, 
as in effect before such amendment, of contributions by an employer to 
a multiemployer plan described in the except clause of section 3(35) of 
such Act that are made before the effective date of subsection (e) 
specified in subsection (h)(2).
    (i) Effective Date.--
            (1) In general.--Except as provided in subparagraph (2), 
        the amendments made by this section shall apply to plan years 
        beginning after the date of the enactment of this Act.
            (2) Special rule for section 414(k) multiemployer plans.--
        The amendment made by subsection (e) shall apply only to 
        required contributions payable for plan years beginning after 
        the date of the enactment of this Act.

SEC. 504. CONFORMING CHANGES.

    (a) Definitions.--
            (1) Amendment to employee retirement income security act of 
        1974.--Section 3 of the Employee Retirement Income Security Act 
        of 1974 (29 U.S.C. 1002) is amended--
                    (A) in paragraph (35), by inserting ``or a 
                composite plan'' after ``other than an individual 
                account plan''; and
                    (B) by adding at the end the following:
            ``(43) The term `composite plan' has the meaning given the 
        term in section 801(a).''.
            (2) Amendment to internal revenue code of 1986.--Section 
        414(j) of the Internal Revenue Code of 1986 is amended by 
        inserting ``, other than a composite plan (as defined in 
        section 437(a)),'' after ``any plan''.
    (b) Special Funding Rule for Certain Legacy Plans.--
            (1) Amendment to employee retirement income security act of 
        1974.--Section 304(b) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1084(b)), as amended by this 
        Act, is amended by adding at the end the following:
            ``(10) Special funding rule for certain legacy plans.--In 
        the case of a multiemployer defined benefit plan that has 
        adopted an amendment under section 801(b), in accordance with 
        which no further benefits shall accrue under the multiemployer 
        defined benefit plan, the plan sponsor may combine the 
        outstanding balance of all charge and credit bases and amortize 
        that combined base in level annual installments (until fully 
        amortized) over a period of 25 plan years beginning with the 
        plan year following the date all benefit accruals ceased, but 
        only if the plan is not in endangered or critical status under 
        section 305.''.
            (2) Amendment to internal revenue code of 1986.--Section 
        431(b) of the Internal Revenue Code of 1986, as amended by this 
        Act, is amended by adding at the end the following:
            ``(10) Special funding rule for certain legacy plans.--In 
        the case of a multiemployer defined benefit plan that has 
        adopted an amendment under section 437(b), in accordance with 
        which no further benefits shall accrue under the multiemployer 
        defined benefit plan, the plan sponsor may combine the 
        outstanding balance of all charge and credit bases and amortize 
        that combined base in level annual installments (until fully 
        amortized) over a period of 25 plan years beginning with the 
        plan year following the date on which all benefit accruals 
        ceased, but only if the plan is not in endangered or critical 
        status under section 432.''.
    (c) Benefits After Merger, Consolidation, or Transfer of Assets.--
            (1) Amendment to employee retirement income security act of 
        1974.--Section 208 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1058) is amended--
                    (A) by striking so much of the first sentence as 
                precedes ``may not merge'' and inserting the following:
            ``(1) In general.--Except as provided in paragraph (2), a 
        pension plan may not merge, and''; and
                    (B) by striking the second sentence and adding at 
                the end the following:
            ``(2) Special requirements for multiemployer plans.--
        Paragraph (1) shall not apply to any transaction to the extent 
        that participants either before or after the transaction are 
        covered under a multiemployer plan to which title IV of this 
        Act applies or a composite plan.''.
            (2) Amendments to internal revenue code of 1986.--
                    (A) Qualification requirement.--Section 401(a)(12) 
                of the Internal Revenue Code of 1986 is amended--
                            (i) by striking ``(12) A trust'' and 
                        inserting the following:
            ``(12) Benefits after merger, consolidation, or transfer of 
        assets.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a trust'';
                            (ii) by striking the second sentence; and
                            (iii) by adding at the end the following:
                    ``(B) Special requirements for multiemployer 
                plans.--Subparagraph (A) shall not apply to any 
                multiemployer plan with respect to any transaction to 
                the extent that participants either before or after the 
                transaction are covered under a multiemployer plan to 
                which title IV of the Employee Retirement Income 
                Security Act of 1974 applies or a composite plan.''.
                    (B) Additional qualification requirement.--
                Paragraph (1) of section 414(l) of such Code is 
                amended--
                            (i) by striking ``(1) In general'' and all 
                        that follows through ``shall not constitute'' 
                        and inserting the following:
            ``(1) Benefit protections: merger, consolidation, 
        transfer.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a trust which forms a part of a plan 
                shall not constitute'';
                            (ii) by striking the second sentence; and
                            (iii) by adding at the end the following:
                    ``(B) Special requirements for multiemployer 
                plans.--Subparagraph (A) does not apply to any 
                multiemployer plan with respect to any transaction to 
                the extent that participants either before or after the 
                transaction are covered under a multiemployer plan to 
                which title IV of the Employee Retirement Income 
                Security Act of 1974 applies or a composite plan.''.
    (d) Requirements for Status as a Qualified Plan.--
            (1) Requirement that actuarial assumptions be specified.--
        Section 401(a)(25) of the Internal Revenue Code of 1986 is 
        amended by inserting ``(in the case of a composite plan, 
        benefits objectively calculated pursuant to a formula)'' after 
        ``definitely determinable benefits''.
            (2) Missing participants in terminating composite plan.--
        Section 401(a)(34) of the Internal Revenue Code of 1986 is 
        amended by striking ``, a trust'' and inserting ``or a 
        composite plan, a trust''.
    (e) Deduction for Contributions to a Qualified Plan.--Section 
404(a)(1) of the Internal Revenue Code of 1986 is amended by 
redesignating subparagraph (E) as subparagraph (F) and by inserting 
after subparagraph (D) the following:
                    ``(E) Composite plans.--
                            ``(i) In general.--In the case of a 
                        composite plan, subparagraph (D) shall not 
                        apply and the maximum amount deductible for a 
                        plan year shall be the excess (if any) of--
                                    ``(I) 140 percent of the greater 
                                of--
                                            ``(aa) the current 
                                        liability of the plan 
                                        determined in accordance with 
                                        the principles of section 
                                        431(c)(6)(D), or
                                            ``(bb) the present value of 
                                        plan liabilities as determined 
                                        under section 438, over
                                    ``(II) the fair market value of the 
                                plan's assets, projected to the end of 
                                the plan year.
                            ``(ii) Special rules for predecessor 
                        multiemployer plan to composite plan.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), if an 
                                employer contributes to a composite 
                                plan with respect to its employees, 
                                contributions by that employer to a 
                                legacy plan with respect to some or all 
                                of the same group of employees shall be 
                                deductible under sections 162 and this 
                                section, subject to the limits in 
                                subparagraph (D).
                                    ``(II) Transition contribution.--
                                The full amount of a contribution to 
                                satisfy the transition contribution 
                                requirement (as defined in section 
                                440A(d)) and allocated to the legacy 
                                defined benefit plan for the plan year 
                                shall be deductible for the employer's 
                                taxable year ending with or within the 
                                plan year.''.
    (f) Minimum Vesting Standards.--
            (1) Years of service under composite plans.--
                    (A) Employee retirement income security act of 
                1974.--Section 203 of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1053) is amended by 
                inserting after subsection (f) the following:
    ``(g) Special Rules for Computing Years of Service Under Composite 
Plans.--
            ``(1) In general.--In determining a qualified employee's 
        years of service under a composite plan for purposes of this 
        section, the employee's years of service under a legacy plan 
        shall be treated as years of service earned under the composite 
        plan. For purposes of such determination, a composite plan 
        shall not be treated as a defined benefit plan pursuant to 
        section 801(d).
            ``(2) Qualified employee.--For purposes of this subsection, 
        an employee is a qualified employee if the employee first 
        completes an hour of service under the composite plan 
        (determined without regard to the provisions of this 
        subsection) within the 12-month period immediately preceding or 
        the 24-month period immediately following the date the employee 
        ceased to accrue benefits under the legacy plan.
            ``(3) Certification of years of service.--For purposes of 
        paragraph (1), the plan sponsor of the composite plan shall 
        rely on a written certification by the plan sponsor of the 
        legacy plan of the years of service the qualified employee 
        completed under the defined benefit plan as of the date the 
        employee satisfies the requirements of paragraph (2), 
        disregarding any years of service that had been forfeited under 
        the rules of the defined benefit plan before that date unless 
        contrary to service records provided by the participant. In the 
        case of a conflict, the plan sponsor shall evaluate the 
        evidence and make a reasonable factual determination.
    ``(h) Special Rules for Computing Years of Service Under Legacy 
Plans.--
            ``(1) In general.--In determining a qualified employee's 
        years of service under a legacy plan for purposes of this 
        section, and in addition to any service under applicable 
        regulations, the employee's years of service under a composite 
        plan shall be treated as years of service earned under the 
        legacy plan. For purposes of such determination, a composite 
        plan shall not be treated as a defined benefit plan pursuant to 
        section 801(d).
            ``(2) Qualified employee.--For purposes of this subsection, 
        an employee is a qualified employee if the employee first 
        completes an hour of service under the composite plan 
        (determined without regard to the provisions of this 
        subsection) within the 12-month period immediately preceding or 
        the 24-month period immediately following the date the employee 
        ceased to accrue benefits under the legacy plan.
            ``(3) Certification of years of service.--For purposes of 
        paragraph (1), the plan sponsor of the legacy plan shall rely 
        on a written certification by the plan sponsor of the composite 
        plan of the years of service the qualified employee completed 
        under the composite plan after the employee satisfies the 
        requirements of paragraph (2), disregarding any years of 
        service that has been forfeited under the rules of the 
        composite plan unless contrary to service records provided by 
        the participant. In the case of a conflict, the plan sponsor 
        shall evaluate the evidence and make a reasonable factual 
        determination.''.
                    (B) Internal revenue code of 1986.--Section 411(a) 
                of the Internal Revenue Code of 1986 is amended by 
                adding at the end the following:
            ``(14) Special rules for determining years of service under 
        composite plans.--
                    ``(A) In general.--In determining a qualified 
                employee's years of service under a composite plan for 
                purposes of this subsection, the employee's years of 
                service under a legacy plan shall be treated as years 
                of service earned under the composite plan. For 
                purposes of such determination, a composite plan shall 
                not be treated as a defined benefit plan pursuant to 
                section 437(d).
                    ``(B) Qualified employee.--For purposes of this 
                paragraph, an employee is a qualified employee if the 
                employee first completes an hour of service under the 
                composite plan (determined without regard to the 
                provisions of this paragraph) within the 12-month 
                period immediately preceding or the 24-month period 
                immediately following the date the employee ceased to 
                accrue benefits under the legacy plan.
                    ``(C) Certification of years of service.--For 
                purposes of subparagraph (A), the plan sponsor of the 
                composite plan shall rely on a written certification by 
                the plan sponsor of the legacy plan of the years of 
                service the qualified employee completed under the 
                legacy plan as of the date the employee satisfies the 
                requirements of subparagraph (B), disregarding any 
                years of service that had been forfeited under the 
                rules of the defined benefit plan before that date 
                unless contrary to service records provided by the 
                participant. In the case of a conflict, the plan 
                sponsor shall evaluate the evidence and make a 
                reasonable factual determination.
            ``(15) Special rules for computing years of service under 
        legacy plans.--
                    ``(A) In general.--In determining a qualified 
                employee's years of service under a legacy plan for 
                purposes of this section, and in addition to any 
                service under applicable regulations, the employee's 
                years of service under a composite plan shall be 
                treated as years of service earned under the legacy 
                plan. For purposes of such determination, a composite 
                plan shall not be treated as a defined benefit plan 
                pursuant to section 437(d).
                    ``(B) Qualified employee.--For purposes of this 
                paragraph, an employee is a qualified employee if the 
                employee first completes an hour of service under the 
                composite plan (determined without regard to the 
                provisions of this paragraph) within the 12-month 
                period immediately preceding or the 24-month period 
                immediately following the date the employee ceased to 
                accrue benefits under the legacy plan.
                    ``(C) Certification of years of service.--For 
                purposes of subparagraph (A), the plan sponsor of the 
                legacy plan shall rely on a written certification by 
                the plan sponsor of the composite plan of the years of 
                service the qualified employee completed under the 
                composite plan after the employee satisfies the 
                requirements of subparagraph (B), disregarding any 
                years of service that has been forfeited under the 
                rules of the composite plan unless contrary to service 
                records provided by the participant. In the case of a 
                conflict, the plan sponsor shall evaluate the evidence 
                and make a reasonable factual determination.''.
            (2) Reduction of benefits.--
                    (A) Employee retirement income security act of 
                1974.--Section 203(a)(3)(E)(ii) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1053(a)(3)(E)(ii)) is amended--
                            (i) in subclause (I) by striking ``4244A'' 
                        and inserting ``305(f), 803,''; and
                            (ii) in subclause (II) by striking ``4245'' 
                        and inserting ``305(f), 4245,''.
                    (B) Internal revenue code of 1986.--Section 
                411(a)(3)(F) of the Internal Revenue Code of 1986 is 
                amended--
                            (i) in clause (i) by striking ``section 
                        418D or under section 4281 of the Employee 
                        Retirement Income Security Act of 1974'' and 
                        inserting ``section 432(f) or 439 or under 
                        section 4281 of the Employee Retirement Income 
                        Security Act of 1974''; and
                            (ii) in clause (ii) by inserting ``or 
                        432(f)'' after ``section 418E''.
            (3) Accrued benefit requirements.--
                    (A) Employee retirement income security act of 
                1974.--Section 204(b)(1)(B)(i) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1054(b)(1)(B)(i)) is amended by inserting ``, including 
                an amendment reducing or suspending benefits under 
                section 305(f), 803, 4245 or 4281,'' after ``any 
                amendment to the plan''.
                    (B) Internal revenue code of 1986.--Section 
                411(b)(1)(B)(i) of the Internal Revenue Code of 1986 is 
                amended by inserting ``, including an amendment 
                reducing or suspending benefits under section 418E, 
                432(f) or 439, or under section 4281 of the Employee 
                Retirement Income Security Act of 1974,'' after ``any 
                amendment to the plan''.
            (4) Additional accrued benefit requirements.--
                    (A) Employee retirement income security act of 
                1974.--Section 204(b)(1)(H)(v) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1053(b)(1)(H)(v)) is amended by inserting before the 
                period at the end the following: ``, or benefits are 
                reduced or suspended under section 305(f), 803, 4245, 
                or 4281''.
                    (B) Internal revenue code of 1986.--Section 
                411(b)(1)(H)(iv) of the Internal Revenue Code of 1986 
                is amended--
                            (i) in the heading by striking ``benefit'' 
                        and inserting ``benefit and the suspension and 
                        reduction of certain benefits''; and
                            (ii) in the text by inserting before the 
                        period at the end the following: ``, or 
                        benefits are reduced or suspended under section 
                        418E, 432(f), or 439, or under section 4281 of 
                        the Employee Retirement Income Security Act of 
                        1974''.
            (5) Accrued benefit not to be decreased by amendment.--
                    (A) Employee retirement income security act of 
                1974.--Section 204(g)(1) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1053(g)(1)) is 
                amended by inserting after ``302(d)(2)'' the following: 
                ``, 305(f), 803, 4245,''.
                    (B) Internal revenue code of 1986.--Section 
                411(d)(6)(A) of the Internal Revenue Code of 1986 is 
                amended by inserting after ``412(d)(2),'' the 
                following: ``418E, 432(f), or 439,''.
    (g) Certain Funding Rules Not Applicable.--
            (1) Employee retirement income security act of 1974.--
        Section 305 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1085), as amended by section 212(a) and as in 
        effect before the amendments made by section 212 other than 
        subsection (a) thereof, is further amended by adding at the end 
        the following:
    ``(l) Legacy Plans.--This section and sections 302 and 304 shall 
not apply to an employer that has an obligation to contribute to a plan 
that is a legacy plan within the meaning of section 805(a) solely 
because the employer has an obligation to contribute to a composite 
plan described in section 801 that is associated with that legacy 
plan.''.
            (2) Internal revenue code of 1986.--Section 432 of the 
        Internal Revenue Code of 1986, as amended by section 211(a) and 
        as in effect before the amendments made by section 211 other 
        than subsection (a) thereof, is further amended by adding at 
        the end the following:
    ``(l) Legacy Plans.--This section and sections 412 and 431 shall 
not apply to an employer that has an obligation to contribute to a plan 
that is a legacy plan within the meaning of section 440A(a) solely 
because the employer has an obligation to contribute to a composite 
plan described in section 437 that is associated with that legacy 
plan.''.
    (h) Termination of Composite Plan.--Section 403(d) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1103(d)) is amended--
            (1) in paragraph (1), by striking ``regulations of the 
        Secretary.'' and inserting ``regulations of the Secretary, or 
        as provided in paragraph (3).''; and
            (2) by adding at the end the following:
            ``(3) Section 4044(a) of this Act shall be applied in the 
        case of the termination of a composite plan by--
                    ``(A) limiting the benefits subject to paragraph 
                (3) thereof to benefits as defined in section 
                802(b)(3)(B); and
                    ``(B) including in the benefits subject to 
                paragraph (4) all other benefits (if any) of 
                individuals under the plan that would be guaranteed 
                under section 4022A if the plan were subject to title 
                IV.''.
    (i) Good Faith Compliance Prior to Guidance.--Where the 
implementation of any provision of law added or amended by this Act is 
subject to issuance of regulations by the Secretary of Labor, the 
Secretary of the Treasury, or the Pension Benefit Guaranty Corporation, 
a multiemployer plan shall not be treated as failing to meet the 
requirements of any such provision prior to the issuance of final 
regulations or other guidance to carry out such provision if such plan 
is operated in accordance with a reasonable, good faith interpretation 
of such provision.

SEC. 505. EFFECTIVE DATE.

    Unless otherwise specified, the amendments made by this title shall 
apply to plan years beginning after the date of the enactment of this 
title.

                     TITLE VI--FINANCIAL PROVISIONS

SEC. 601. ADDITIONAL PREMIUMS.

    (a) Increase in Flat Dollar Premium Beginning in 2022.--Section 
4006(a)(3) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (vi)--
                            (i) by inserting ``and before January 1, 
                        2022,'' after ``2014,''; and
                            (ii) by striking ``or'' at the end;
                    (B) by moving the margins of clause (vii) 2 ems to 
                the left;
                    (C) by redesignating clause (vii) as clause (ix); 
                and
                    (D) by inserting after clause (vi) the following:
            ``(vii) in the case of a multiemployer plan, for plan years 
        beginning in calendar year 2022, for each individual who is a 
        participant in such plan during the plan year, the dollar 
        amount in effect under clause (i) for plan years beginning in 
        2022,''.
    (b) Flat and Variable Rate Premium for Years After 2022.--Section 
4006(a)(3) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)(3)), as amended by subsection (a), is further amended--
            (1) by inserting after clause (vii) of subparagraph (A) the 
        following:
            ``(viii) in the case of a multiemployer plan, for any plan 
        year beginning after December 31, 2022, an amount for each 
        individual who is a participant in such plan during the plan 
        year equal to the sum of--
                    ``(I) the premium rate applicable under clause 
                (i)(VIII), plus
                    ``(II) the additional premium (if any) determined 
                under subparagraph (N) for the plan year, or''; and
            (2) by adding at the end the following:
    ``(N)(i) The additional premium determined under this subparagraph 
with respect to any multiemployer plan for any plan year shall be an 
amount equal to the least of--
            ``(I) the amount determined under clause (ii) for the plan 
        year divided by the number of participants in such plan as of 
        the close of the preceding plan year;
            ``(II) 10 percent of the historic base contributions 
        divided by the number of participants in such plan as of the 
        close of the preceding plan year; or
            ``(III) $250.
    ``(ii) The amount determined under this clause for any plan year 
shall be an amount equal to $10 for each $1,000 (or fraction thereof) 
of the multiemployer unfunded vested benefits under the plan as of the 
close of the preceding plan year. For purposes of this clause, the term 
`multiemployer unfunded vested benefits' means, for a plan year, the 
excess (if any) of--
            ``(I) the current liability of the plan as determined under 
        section 304(c)(6)(D) by taking into account only vested 
        benefits, over
            ``(II) the fair market value (as determined under section 
        304(c)(6)(A)(ii)(I)) of the plan assets for the plan year which 
        are held by the plan as of the valuation date.
    ``(iii) For purposes of clause (i)(II), the term `historic base 
contributions' means the average amount of the contributions, excluding 
any payments of withdrawal liability, to the plan required to be 
reported by the plan on Schedule MB of the 3 most recent Forms 5500 
required to be filed before the date of enactment of this subparagraph.
    ``(iv) For each plan year beginning after December 31, 2023, there 
shall be substituted for the dollar amount of historic base 
contributions under clause (i)(II) and the dollar amount specified in 
clause (i)(III) an amount equal to the greater of--
            ``(I) the product derived by multiplying such dollar amount 
        for plan years beginning in that calendar year by the ratio 
        of--
                    ``(aa) the national average wage index (as defined 
                in section 209(k)(1) of the Social Security Act) for 
                the first of the 2 calendar years preceding the 
                calendar year in which such plan year begins, to
                    ``(bb) the national average wage index (as so 
                defined) for 2021, or
            ``(II) such dollar amount in effect for plan years 
        beginning in the preceding calendar year.
         If any amount determined under this clause is not a multiple 
        of $1, such product shall be rounded to the nearest multiple of 
        $1.''.
    (c) Additional Premiums.--Section 4006(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)), as amended 
by this Act, is further amended by adding at the end the following:
            ``(10) Additional premiums payable by participants and 
        beneficiaries.--
                    ``(A) In general.--In addition to the amounts 
                payable under paragraph (3), for plan years beginning 
                after December 31, 2022, with respect to multiemployer 
                plans, premiums shall be payable to the corporation 
                with respect to participants and beneficiaries who are 
                in pay status in accordance with this paragraph.
                    ``(B) Amounts payable.--Subject to subparagraphs 
                (C), (D), and (E), the monthly amount payable by each 
                participant or beneficiary who is in pay status is--
                            ``(i) an amount equal to 3 percent of the 
                        participant's or beneficiary's aggregate 
                        monthly benefit, in the case of a plan in 
                        endangered status, as described in section 
                        305(b)(2);
                            ``(ii) an amount equal to 5 percent of the 
                        participant's or beneficiary's aggregate 
                        monthly benefit, in the case of a plan in 
                        critical status, as described in section 
                        305(b)(3);
                            ``(iii) an amount equal to 7 percent of the 
                        participant's or beneficiary's aggregate 
                        monthly benefit, in the case of a plan in 
                        critical and declining status (as described in 
                        section 305(b)(7)), a plan that became an 
                        insolvent plan after the date of enactment of 
                        this paragraph, or a plan that has been 
                        terminated under section 4041A or 4042 but is 
                        not insolvent, unless that plan is (or was) an 
                        original or successor plan pursuant to a 
                        special partition order under section 4233A; or
                            ``(iv) notwithstanding clauses (i), (ii), 
                        or (iii), an amount equal to 10 percent of the 
                        participant's or beneficiary's aggregate 
                        monthly benefit, in the case of a plan which is 
                        (or was) an original or successor plan pursuant 
                        to a special partition order under section 
                        4233A, regardless of the status of the original 
                        or successor plan.
                    ``(C) Coordination with suspension of benefits.--In 
                the case of any participant or beneficiary whose 
                benefits are suspended under section 305(f)(9), the 
                percentage of benefits payable under the applicable 
                clause of subparagraph (B) with respect to the 
                participant or beneficiary shall be reduced (but not 
                below zero) by the percentage of benefits which were so 
                suspended.
                    ``(D) Treatment of benefits based on disability.--
                No benefits--
                            ``(i) based on disability (as defined by 
                        the plan), or
                            ``(ii) of a participant or beneficiary who 
                        is entitled to a benefit under title II of the 
                        Social Security Act on the basis of a 
                        disability (as defined in section 223(d)(2) of 
                        such Act),
                shall be included in the calculation of the 
                participant's or beneficiary's aggregate monthly 
                benefit for purposes of determining the payment due 
                under subparagraph (B).
                    ``(E) Phaseout of premium for those aged 75 and 
                older.--
                            ``(i) In general.--In the case of a 
                        participant or beneficiary who has attained or 
                        will attain at least 75 years of age in a plan 
                        year, the monthly amount payable by such 
                        participant or beneficiary for months during 
                        such plan year under this paragraph (determined 
                        without regard to this subparagraph) shall be 
                        reduced by the applicable percentage of such 
                        amount.
                            ``(ii) Applicable percentage.--For purposes 
                        of clause (i), the applicable percentage for 
                        any month shall be determined in accordance 
                        with the following table:

``If the individual is, or will     The applicable percentage is:
        attain during the plan 
        year, age:
        75................................................. 20 percent 
        76................................................. 40 percent 
        77................................................. 60 percent 
        78................................................. 80 percent 
        79 or older....................................... 100 percent.

                    ``(F) Methods of collection.--The premiums payable 
                under subparagraph (B) shall be collected by the plan 
                from participants who are receiving benefits under the 
                plan by deducting the amount of the premium from the 
                benefits as and when paid, and holding such amounts in 
                a separate account to be remitted to the corporation 
                annually, as prescribed by regulations of the 
                corporation. Amounts held in a separate account under 
                this subparagraph shall not accrue interest, shall not 
                be treated as assets of the plan, and shall not be 
                commingled with any other assets of the plan.
                    ``(G) Plan amendments.--The administrator of each 
                multiemployer plan shall amend the plan documents to 
                allow for deductions from benefits pursuant to this 
                paragraph.
                    ``(H) Preemption.--This paragraph shall supersede 
                any law of a State which would directly or indirectly 
                prohibit or restrict an employer, plan, or labor 
                organization from withholding or remitting premium 
                amounts in accordance with this paragraph.
                    ``(I) Determination of plan status.--
                            ``(i) In general.--Except as otherwise 
                        provided by the regulations issued pursuant to 
                        clause (ii), for purposes of determining 
                        premiums due under this paragraph, the plan's 
                        status shall be the status certified under 
                        section 305 for the first plan year beginning 
                        on or after January 1, 2022.
                            ``(ii) Subsequent changes in status.--The 
                        corporation shall issue regulations regarding 
                        the timing required for reflecting, in the 
                        amounts withheld, a revised plan status 
                        certified at a later date. In no event shall 
                        such regulations allow a delay of more than 90 
                        days.
            ``(11) Additional premiums payable by employers and labor 
        organizations.--
                    ``(A) In general.--In addition to the amounts 
                payable under paragraph (3), for plan years beginning 
                after December 31, 2022, with respect to multiemployer 
                plans, premiums shall be payable to the corporation 
                with respect to employers and labor organizations in 
                accordance with this paragraph.
                    ``(B) Employers.--The monthly amount payable by 
                employers, for each employee participating in the plan 
                (as determined under subparagraph (D)) during that 
                month is--
                            ``(i) $1 in the case of a plan in 
                        unrestricted status pursuant to section 
                        305(b)(1)(B), or $1.50 in the case of a plan in 
                        stable status pursuant to section 305(b)(1)(A), 
                        but only if the plan is not an original plan or 
                        a successor plan within the meaning of section 
                        4233A; and
                            ``(ii) $2.50 in any other case.
                    ``(C) Labor organizations.--The monthly amount 
                payable by labor organizations, for each member paying 
                dues and participating in the plan (as determined under 
                subparagraph (D)) during that month is--
                            ``(i) $1 in the case of a plan in 
                        unrestricted status pursuant to section 
                        305(b)(1)(B), or $1.50 in the case of a plan in 
                        stable status pursuant to section 305(b)(1)(A), 
                        but only if the plan is not an original plan or 
                        a successor plan within the meaning of section 
                        4233A; and
                            ``(ii) $2.50 in any other case.
                    ``(D) Persons participating in the plan.--For 
                purposes of subparagraphs (B) and (C), an employee or 
                member participating in the plan during any month is a 
                person with respect to whom the employer had an 
                obligation to contribute to the plan under the terms of 
                a collective bargaining agreement or other 
                participation agreement for that month.
                    ``(E) Remittance.--Premiums required under 
                subparagraph (B) or (C) shall be remitted to the plan 
                monthly and held in a separate account until 
                remittance, as prescribed in subparagraph (F). In the 
                case of a participant or beneficiary on whose behalf 
                more than one employer contributed during a month, the 
                plan may elect to apportion the monthly amount to the 
                employers on a proportional basis. Amounts held in a 
                separate account under this subparagraph shall not 
                accrue interest, shall not be treated as assets of the 
                plan, and shall not be commingled with any other assets 
                of the plan.
                    ``(F) Submission to the corporation.--Each plan 
                shall submit the premiums under subparagraph (E) to the 
                corporation, on an annual basis, as prescribed by 
                regulations of the corporation.
                    ``(G) Determination of plan status.--
                            ``(i) In general.--Except as otherwise 
                        provided by the regulations issued pursuant to 
                        clause (ii), for purposes of determining 
                        premiums due under this paragraph, the plan's 
                        status shall be the status certified under 
                        section 305 for the first plan year beginning 
                        on or after January 1, 2022.
                            ``(ii) Subsequent changes in status.--The 
                        corporation shall issue regulations regarding 
                        the timing required for reflecting, in the 
                        amounts due, a revised plan status certified at 
                        a later date. In no event shall such 
                        regulations allow a delay of more than 90 
                        days.''.
    (d) Payment of Premiums.--
            (1) Applicability of premiums.--Section 4007(b) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1307(b)) is amended by adding at the end the following:
    ``(3)(A)(i) The following plans shall not owe a variable rate 
premium determined under section 4006(a)(3)(N):
            ``(I) An insolvent plan that has commenced receiving 
        financial assistance.
            ``(II) A plan which is certified by the plan actuary under 
        section 305 as being in unrestricted status pursuant to section 
        305(b)(1)(B), and which is not an original plan within the 
        meaning of section 4233A.
            ``(III) With respect to plan years beginning before January 
        1, 2025, a plan which is certified by the plan actuary under 
        section 305 as being in stable status pursuant to section 
        305(b)(1)(A), and which is not an original plan within the 
        meaning of section 4233A.
    ``(ii) An insolvent plan that has commenced receiving financial 
assistance shall not owe the flat rate premium under section 
4006(a)(3)(A)(viii)(I).
    ``(B) In the case of a special partition under section 4233A, the 
original plan shall calculate and remit premiums under section 4006 as 
if the original plan and successor plan were one plan and the successor 
plan shall not be required to remit any such premiums.
    ``(4) Paragraph (1) shall apply to the additional premiums required 
by section 4006(a)(10) and (11).''.
            (2) Authorized civil actions.--Section 4007(c) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1307(c)) is amended by inserting after the first sentence the 
        following: ``The corporation is authorized to bring a civil 
        action to prevent or correct any action by a designated payor, 
        if a principal purpose of the action by the designated payor is 
        to evade or avoid the payment of premiums, and the corporation 
        shall be authorized to recover the amount of premium that 
        should have been paid by such payor, plus a late payment 
        penalty and interest.''.
    (e) Reporting on Premium Increases and Guarantee Reductions.--
Section 4008 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1308) is amended by adding at the end the following:
    ``(c) Beginning with the report for fiscal year 2025, if the 
corporation projects in its reporting under this section that the 
corporation's multiemployer plan program will not remain solvent for at 
least 10 years after the date of the report, the corporation shall 
include in the report a recommendation for a balanced combination of 
premium increases and guarantee reductions needed to ensure solvency 
for the next 20 years without respect to any loans under section 4005. 
Such recommendations shall be automatically adopted at the beginning of 
the next fiscal year unless Congress takes other action.''.
    (f) Delinquent Contributions.--
            (1) In general.--Section 515 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1145) is amended--
                    (A) by striking ``contributions.--Every'', and 
                inserting ``contributions and premiums.--
    ``(a) In General.--Every'', and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) Premiums.--Every employer or labor organization which is 
obligated to remit premiums with respect to a multiemployer plan under 
section 4006 shall remit such premiums to the plan in accordance with 
the terms of the plan and regulations issued by the corporation.''.
            (2) Civil enforcement.--Section 502(g)(2)(A) of such Act 
        (29 U.S.C. 1132(g)(2)(A)) is amended by striking 
        ``contributions,'' and inserting ``contributions or 
        premiums,''.

SEC. 602. FUNDING.

    (a) Loans to the Corporation for the Fund To Pay Basic Benefits.--
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) The corporation may borrow from the Secretary of the 
Treasury such funds as are necessary to pay basic benefits guaranteed 
under section 4022A or expenses related to the corporation's 
multiemployer plan program if the balance of assets in the revolving 
fund established under subsection (a) for purposes of paying such 
benefits is $500,000,000 or less within that year. The corporation may 
invest amounts so borrowed in accordance with subsection (b)(3)(A).
    ``(2) Amounts borrowed under this subsection shall be--
            ``(A) issued at an annual interest rate of 0 percent; and
            ``(B) repaid by the corporation--
                    ``(i) beginning 20 years after the date on which 
                the loan is issued;
                    ``(ii) over a period of not more than 20 years from 
                commencement of repayment; and
                    ``(iii) out of the fund established under 
                subsection (a) to pay basic benefits guaranteed under 
                section 4022A.
    ``(3) The corporation shall notify the Committee on Health, 
Education, Labor, and Pensions and the Committee on Finance of the 
Senate and the Committee on Education and Labor and the Committee on 
Ways and Means of the House of Representatives within 14 days of 
requesting a loan under this subsection.
    ``(4) Beginning on January 1, 2022, if, as of the close of any 
calendar year the outstanding balance of the loans provided to the 
corporation during the previous year under this subsection exceeded 
$2,000,000,000, the multiemployer flat-rate premium rates applicable 
under section 4006(a) solely for plan years beginning in the 
immediately succeeding calendar year shall be increased by 20 
percent.''.
    (b) Study on Funding for Basic Benefit Guarantee.--Section 4022A(f) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1322a(f)) is amended--
            (1) by striking ``Committee on Labor and Human Resources'' 
        each place such term appears and inserting ``Committee on 
        Health, Education, Labor, and Pensions'';
            (2) in paragraph (1)(A)--
                    (A) in clause (i), by striking ``, and'' and 
                inserting a semicolon; and
                    (B) by inserting after clause (ii) the following:
                    ``(iii) whether the Corporation projects that the 
                loans issued under section 4005(i) will be repaid in 
                accordance with the schedule set forth in paragraph 
                (2)(B) of such section; and'';
            (3) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        inserting ``and repayment of loans under 
                        section 4005(i)'' after ``multiemployer 
                        plans''; and
                            (ii) in clause (ii), by inserting ``, and 
                        repayment of any loans issued under section 
                        4005(i)'' before the comma at the end; and
                    (B) in subparagraph (C), by striking ``second''; 
                and
            (4) in paragraph (3)(A)(ii), by inserting ``and repayment 
        of loans issued under section 4005(i)'' before the period.

SEC. 603. COMPOSITE PLAN TRANSITION FEE.

    (a) In General.--Section 4006(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1306(a)), as amended by this Act, is 
further is amended by adding at the end the following:
            ``(12) Composite plan transition fee.--Notwithstanding 
        paragraph (9), in any year after 2024, a composite plan (as 
        defined in section 801(a)) shall remit to the legacy plan 
        (within the meaning of section 805) $15 per participant that is 
        not also a participant in the legacy plan. The legacy plan 
        shall remit such amount to the corporation in addition to its 
        premiums otherwise required under this section.''.
    (b) Conforming Amendment.--Section 4007(b)(4) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1307(b)(4)), as added 
by section 601, is amended by inserting ``, and the transition fees 
required by section 4006(a)(12)'' before the period.
                                 <all>