Butch Lewis Emergency Pension Plan Relief Act of 2021
Bill: S.547 | Sponsor: Sen. Brown, Sherrod (D-OH)
Policy area: Labor and Employment

Summary:
Butch Lewis Emergency Pension Plan Relief Act of 2021  This bill modifies the funding rules and provides financial assistance for certain pension plans that are underfunded or insolvent.   First, the bill expands the authority of, and provides funding for, the Pension Benefit Guaranty Corporation (PBGC) to provide special partition assistance to a multiemployer pension plan that is insolvent or at risk of insolvency. The bill expands eligibility for partition assistance, provides funding for a plan to reach a projected funded ratio of 80% over a 30-year period, and does not require a plan to repay such assistance.
The bill further permits a multiemployer pension plan to elect to retain its funding zone status from the previous year for either (1) the first plan year beginning during the period from March 1, 2020, through February 28, 2021; or (2) the next succeeding plan year, as designated by the plan sponsor. A plan may also extend by five years the funding improvement or rehabilitation period if the plan is designated as in endangered or critical status for a plan year beginning in 2020 or 2021. A plan in critical and declining status may not suspend payment of plan benefits.
Additionally, the bill adjusts the minimum funding standards for a multiemployer pension plan to account for investment losses and other losses related to the COVID-19 pandemic and modifies the PBGC guarantee formula to increase the maximum potential benefits under a multiemployer pension plan.

To provide relief for multiemployer and single employer pension plans, 
                        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.

    This Act may be cited as the ``Butch Lewis Emergency Pension Plan 
Relief Act of 2021''.

SEC. 2. SPECIAL PARTITION RELIEF.

    (a) Appropriation.--Section 4005 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1305) is amended by adding at the end 
the following:
    ``(i)(1) An eighth fund shall be established for partition 
assistance to multiemployer pension plans, as provided under section 
4233A, and to pay for necessary administrative and operating expenses 
relating to such assistance.
    ``(2) There is appropriated from the general fund such amounts as 
necessary for the costs of providing partition assistance under section 
4233A and necessary administrative and operating expenses. The eighth 
fund established under this subsection shall be credited with such 
amounts from time to time as the Secretary of the Treasury determines 
appropriate, from the general fund of the Treasury, and such amounts 
shall remain available until expended.''.
    (b) Special Partition Authority.--The Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1001 et seq.) is amended by inserting 
after section 4233 the following:

``SEC. 4233A. SPECIAL PARTITION RELIEF.

    ``(a) Special Partition Authority.--
            ``(1) In general.--Upon the application of a plan sponsor 
        of an eligible multiemployer plan for partition of the plan 
        under this section, the corporation shall order a partition of 
        the plan in accordance with this section.
            ``(2) Inapplicability of certain repayment obligation.--A 
        plan receiving partition assistance pursuant to this section 
        shall not be subject to repayment obligations under section 
        4261(b)(2).
    ``(b) Eligible Plans.--
            ``(1) In general.--For purposes of this section, a 
        multiemployer plan is an eligible multiemployer plan if--
                    ``(A) the plan is in critical and declining status 
                (within the meaning of section 305(b)(6)) in any plan 
                year beginning in 2020 through 2024;
                    ``(B) a suspension of benefits has been approved 
                with respect to the plan under section 305(e)(9) as of 
                the date of the enactment of this section;
                    ``(C) in any plan year beginning in 2020 through 
                2024, the plan is certified by the plan actuary to be 
                in critical status (within the meaning of section 
                305(b)(2)), has a modified funded percentage of less 
                than 40 percent, and has a ratio of active to inactive 
                participants which is less than 2 to 3; or
                    ``(D) the plan is insolvent for purposes of section 
                418E of the Internal Revenue Code of 1986 as of the 
                date of enactment of this section, if the plan became 
                insolvent after December 16, 2014, and has not been 
                terminated by such date of enactment.
            ``(2) Modified funded percentage.--For purposes of 
        paragraph (1)(C), the term `modified funded percentage' means 
        the percentage equal to a fraction the numerator of which is 
        current value of plan assets (as defined in section 3(26) of 
        such Act) and the denominator of which is current liabilities 
        (as defined in section 431(c)(6)(D) of such Code and section 
        304(c)(6)(D) of such Act).
    ``(c) Applications for Special Partition.--
            ``(1) Guidance.--The corporation shall issue guidance 
        setting forth requirements for special partition applications 
        under this section not later than 120 days after the date of 
        the enactment of this section. In such guidance, the 
        corporation shall--
                    ``(A) limit the materials required for a special 
                partition application to the minimum necessary to make 
                a determination on the application; and
                    ``(B) provide for an alternate application for 
                special partition under this section, which may be used 
                by a plan that has been approved for a partition under 
                section 4233 before the date of enactment of this 
                section.
            ``(2) Temporary priority consideration of applications.--
                    ``(A) In general.--The corporation may specify in 
                guidance under paragraph (1) that, during the first 2 
                years following the date of enactment of this section, 
                special partition applications will be provided 
                priority consideration, if--
                            ``(i) the plan is likely to become 
                        insolvent within 5 years of the date of 
                        enactment of this section;
                            ``(ii) the corporation projects a plan to 
                        have a present value of financial assistance 
                        payments under section 4261 that exceeds 
                        $1,000,000,000 if the special partition is not 
                        ordered;
                            ``(iii) the plan has implemented benefit 
                        suspensions under section 305(e)(9) as of the 
                        date of the enactment of this section; or
                            ``(iv) the corporation determines it 
                        appropriate based on other circumstances.
                    ``(B) No effect on amount of assistance.--A plan 
                that is approved for special partition assistance under 
                this section shall not receive reduced special 
                partition assistance on account of not receiving 
                priority consideration under subparagraph (A).
            ``(3) Actuarial assumptions and other information.--The 
        corporation shall accept assumptions incorporated in a 
        multiemployer plan's determination that it is in critical 
        status or critical and declining status (within the meaning of 
        section 305(b)), or that the plan's modified funded percentage 
        is less than 40 percent, unless such assumptions are clearly 
        erroneous. The corporation may require such other information 
        as the corporation determines appropriate for making a 
        determination of eligibility and the amount of special 
        partition assistance necessary under this section.
            ``(4) Application deadline.--Any application by a plan for 
        special partition assistance under this section shall be 
        submitted no later than December 31, 2026, and any revised 
        application for special partition assistance shall be submitted 
        no later than December 31, 2027.
            ``(5) Notice of application.--Not later than 120 days after 
        the date of enactment of this section, the corporation shall 
        issue guidance requiring multiemployer plans to notify 
        participants and beneficiaries that the plan has applied for 
        partition under this section, after the corporation has 
        determined that the application is complete. Such notice shall 
        reference the special partition relief internet website 
        described in subsection (p).
    ``(d) Determinations on Applications.--A plan's application for 
special partition under this section that is timely filed in accordance 
with guidance issued under subsection (c)(1) shall be deemed approved 
and the corporation shall issue a special partition order unless the 
corporation notifies the plan within 120 days of the filing of the 
application that the application is incomplete or the plan is not 
eligible under this section. Such notice shall specify the reasons the 
plan is ineligible for a special partition or information needed to 
complete the application. If a plan is denied partition under this 
subsection, the plan may submit a revised application under this 
section. Any revised application for special partition submitted by a 
plan shall be deemed approved unless the corporation notifies the plan 
within 120 days of the filing of the revised application that the 
application is incomplete or the plan is not eligible under this 
section. A special partition order issued by the corporation shall be 
effective no later than 120 days after a plan's special partition 
application is approved by the corporation or deemed approved.
    ``(e) Amount and Manner of Special Partition Assistance.--
            ``(1) In general.--The liabilities of an eligible 
        multiemployer plan that the corporation assumes pursuant to a 
        special partition order under this section shall be the amount 
        necessary for the plan to meet its funding goals described in 
        subsection (g).
            ``(2) No cap.--Liabilities assumed by the corporation 
        pursuant to a special partition order under this section shall 
        not be capped by the guarantee under section 4022A. The 
        corporation shall have discretion on how liabilities of the 
        plan are partitioned.
    ``(f) Successor Plan.--
            ``(1) In general.--The plan created by a special partition 
        order under this section is a successor plan to which section 
        4022A applies.
            ``(2) Plan sponsor and administrator.--The plan sponsor of 
        an eligible multiemployer plan prior to the special partition 
        and the administrator of such plan shall be the plan sponsor 
        and the administrator, respectively, of the plan created by the 
        partition.
    ``(g) Funding Goals.--
            ``(1) In general.--The funding goals of a multiemployer 
        plan eligible for partition under this section are both of the 
        following:
                    ``(A) The plan will remain solvent over 30 years 
                with no reduction in a participant's or beneficiary's 
                accrued benefit (except to the extent of a reduction in 
                accordance with section 305(e)(8) adopted prior to the 
                plan's application for partition under this section).
                    ``(B) The funded percentage of the plan 
                (disregarding partitioned benefits) at the end of the 
                30-year period is projected to be 80 percent.
            ``(2) Basis.--The funding projections under paragraph (1) 
        shall be performed on a deterministic basis.
    ``(h) Restoration of Benefit Suspensions.--An eligible 
multiemployer plan that is partitioned under this section shall--
            ``(1) reinstate any benefits that were suspended under 
        section 305(e)(9) or section 4245(a), effective as of the first 
        month the special partition order is effective, for 
        participants or beneficiaries as of the effective date of the 
        partition; and
            ``(2) provide payments equal to the amount of benefits 
        previously suspended to any participants or beneficiaries in 
        pay status as of the effective date of the special partition, 
        payable in the form of a lump sum within 3 months of such 
        effective date or in equal monthly installments over a period 
        of 5 years, with no adjustment for interest.
    ``(i) Adjustment of Special Partition Assistance.--
            ``(1) In general.--Every 5 years, the corporation shall 
        adjust the special partition assistance described in subsection 
        (e) as necessary for the eligible multiemployer plan to satisfy 
        the funding goals described in subsection (g). If the 30 year 
        period described in subsection (g) has lapsed, in applying this 
        paragraph, 5 years shall be substituted for 30 years.
            ``(2) Submission of information.--An eligible multiemployer 
        plan that is the subject of a special partition order under 
        subsection (a) shall submit such information as the corporation 
        may require to determine the amount of the adjustment under 
        paragraph (1).
            ``(3) Cessation of adjustments.--Adjustments under this 
        subsection with respect to special partition assistance for an 
        eligible multiemployer plan shall cease and the corporation 
        shall permanently assume liability for payment of any benefits 
        transferred to the successor plan (subject to subsection (l)) 
        beginning with the first plan year that the funded percentage 
        of the eligible multiemployer plan (disregarding partitioned 
        benefits) is at least 80 percent and the plan's projected 
        funded percentage for each of the next 10 years is at least 80 
        percent. Any accumulated funding deficiency of the plan (within 
        the meaning of section 304(a)) shall be reduced to zero as of 
        the first day of the plan year for which partition assistance 
        is permanent under this paragraph.
    ``(j) Conditions on Plans During Partition.--
            ``(1) In general.--The corporation may impose, by 
        regulation, reasonable conditions on an eligible multiemployer 
        plan that is partitioned under section (a) relating to 
        increases in future accrual rates and any retroactive benefit 
        improvements, allocation of plan assets, reductions in employer 
        contribution rates, diversion of contributions to, and 
        allocation of, expenses to other retirement plans, and 
        withdrawal liability.
            ``(2) Limitations.--The corporation shall not impose 
        conditions on an eligible multiemployer plan as a condition of 
        or following receipt of such partition assistance under this 
        section relating to--
                    ``(A) any reduction in plan benefits (including 
                benefits that may be adjusted pursuant to section 
                305(e)(8));
                    ``(B) plan governance, including selection of, 
                removal of, and terms of contracts with, trustees, 
                actuaries, investment managers, and other service 
                providers; or
                    ``(C) any funding rules relating to the plan that 
                is partitioned under this section.
            ``(3) Condition.--An eligible multiemployer plan that is 
        partitioned under subsection (a) shall continue to pay all 
        premiums due under section 4007 for participants and 
        beneficiaries in the plan created by a special partition order 
        until the plan year beginning after a cessation of adjustments 
        applies under subsection (i).
    ``(k) Withdrawal Liability.--An employer's withdrawal liability for 
purposes of this title shall be calculated taking into account any plan 
liabilities that are partitioned under subsection (a) until the plan 
year beginning after the expiration of 15 calendar years from the 
effective date of the partition.
    ``(l) Cessation of Partition Assistance.--If a plan that receives 
partition assistance under this section becomes insolvent for purposes 
of section 418E of the Internal Revenue Code of 1986, the plan shall no 
longer be eligible for assistance under this section and shall be 
eligible for assistance under section 4261.
    ``(m) Reporting.--An eligible multiemployer plan that receives 
partition assistance under this section shall file with the corporation 
a report, including the following information, in such manner (which 
may include electronic filing requirements) and at such time as the 
corporation requires:
            ``(1) The funded percentage (as defined in section 
        305(j)(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 market value of the assets of the plan 
        (determined as provided in paragraph (1)) as of the last day of 
        the plan year preceding such plan year.
            ``(3) The total value of all contributions made by 
        employers and employees during the plan year preceding such 
        plan year.
            ``(4) The total value of all benefits paid during the plan 
        year preceding such plan year.
            ``(5) Cash flow projections for such plan year and the 9 
        succeeding plan years, and the assumptions used in making such 
        projections.
            ``(6) Funding standard account projections for such plan 
        year and the 9 succeeding plan years, and the assumptions 
        relied upon in making such projections.
            ``(7) The total value of all investment gains or losses 
        during the plan year preceding such plan year.
            ``(8) Any significant reduction in the number of active 
        participants during the plan year preceding such plan year, and 
        the reason for such reduction.
            ``(9) A list of employers that withdrew from the plan in 
        the plan year preceding such plan year, the payment schedule 
        with respect to such withdrawal liability, 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) The information contained on the most recent annual 
        funding notice submitted by the plan under section 101(f).
            ``(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.
Any information disclosed by a plan to the corporation that could 
identify individual employers shall be confidential and not subject to 
publication or disclosure.
    ``(n) Report to Congress.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section and annually thereafter, the board of 
        directors of the corporation shall submit to 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 a detailed report on the implementation and 
        administration of this section. Such report shall include--
                    ``(A) information on the name and number of 
                multiemployer plans that have applied for partition 
                assistance under this section;
                    ``(B) the name and number of such plans that have 
                been approved for partition assistance under this 
                section and the name and number of the plans that have 
                not been approved for special partition assistance;
                    ``(C) a detailed rationale for any decision by the 
                corporation to not approve an application for special 
                partition assistance;
                    ``(D) the amount of special partition assistance 
                provided to eligible multiemployer plans (including 
                amounts provided on an individual plan basis and in the 
                aggregate);
                    ``(E) the name and number of the multiemployer 
                plans that restored benefit suspensions and provided 
                lump sum or monthly installment payments to 
                participants or beneficiaries;
                    ``(F) the amount of benefits that were restored and 
                lump sum or monthly installment payments that were paid 
                (including amounts provided on an individual plan basis 
                and in the aggregate);
                    ``(G) the name and number of the plans that 
                received adjustments to partition assistance under 
                subsection (i);
                    ``(H) a list of, and rationale for, each reasonable 
                condition imposed by the corporation on plans approved 
                for special partition assistance under this section;
                    ``(I) the contracts that have been awarded by the 
                corporation to implement or administer this section;
                    ``(J) the number, purpose, and dollar amounts of 
                the contracts that have been awarded to implement or 
                administer the section;
                    ``(K) a detailed summary of the reports required 
                under subsection (m); and
                    ``(L) a detailed summary of the feedback received 
                on the pension relief internet website established 
                under subsection (p).
            ``(2) PBGC certification.--The board of directors of the 
        corporation shall include with the report under paragraph (1) a 
        certification and affirmation that the amount of special 
        partition assistance provided to each plan under this section 
        is the amount necessary to meet its funding goals under 
        subsection (g), including, if applicable, any adjustment of 
        special partition assistance as determined under subsection 
        (i).
            ``(3) Confidentiality.--Congress may publicize the reports 
        received under paragraph (1) only after redacting all sensitive 
        or proprietary information.
    ``(o) GAO Report.--Not later than 1 year after the first partition 
application is approved by the corporation under this section, and 
biennially thereafter, the Comptroller General of the United States 
shall submit to 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 a detailed report on the actions of the corporation to 
implement and administer this section, including an examination of the 
contracts awarded by such corporation to carry out this section and an 
analysis of such corporation's compliance with subsections (e) and (g).
    ``(p) Special Partition Relief Website.--
            ``(1) Establishment.--Not later than 120 days after the 
        date of enactment of this section, the corporation shall 
        establish and maintain a user-friendly, public-facing internet 
        website to foster greater accountability and transparency in 
        the implementation and administration of this section.
            ``(2) Purpose.--The internet website established and 
        maintained under paragraph (1) shall be a portal to key 
        information relating to this section for multiemployer plan 
        administrators and trustees, plan participants, beneficiaries, 
        participating employers, other stakeholders, and the public.
            ``(3) Content and function.--The internet website 
        established under paragraph (1) shall--
                    ``(A) describe the nature and scope of the special 
                partition authority and assistance under this section 
                in a manner calculated to be understood by the average 
                plan participant;
                    ``(B) include published guidance, regulations, and 
                all other relevant information on the implementation 
                and administration of this section;
                    ``(C) include, with respect to plan applications 
                for special partition assistance--
                            ``(i) a general description of the process 
                        by which eligible plans can apply for special 
                        partition assistance, information on how and 
                        when the corporation will process and consider 
                        plan applications;
                            ``(ii) information on how the corporation 
                        will address any incomplete applications as 
                        specified in under this section;
                            ``(iii) a list of the plans that have 
                        applied for special partition assistance and, 
                        for each application, the date of submission of 
                        a completed application;
                            ``(iv) the text of each plan's completed 
                        application for special partition assistance 
                        with appropriate redactions of personal, 
                        proprietary, or sensitive information;
                            ``(v) the estimated date that a decision 
                        will be made by the corporation on each 
                        application;
                            ``(vi) the actual date when such decision 
                        is made;
                            ``(vii) the corporation's decision on each 
                        application; and
                            ``(viii) as applicable, a detailed 
                        rationale for any decision not to approve a 
                        plan's application for special partition 
                        assistance;
                    ``(D) provide detailed information on each contract 
                solicited and awarded to implement or administer this 
                section;
                    ``(E) include reports, audits, and other relevant 
                oversight and accountability information on this 
                section, including the annual reports submitted by the 
                board of directors of the corporation to Congress 
                required under subsection (n), the Office of the 
                Inspector General audits, correspondence, and 
                publications, and the Government Accountability Office 
                reports under subsection (o);
                    ``(F) provide a clear means for multiemployer plan 
                administrators, plan participants, beneficiaries, other 
                stakeholders, and the public to contact the corporation 
                and provide feedback on the implementation and 
                administration of this section; and
                    ``(G) be regularly updated to carry out the 
                purposes of this subsection.
    ``(q) Office of Inspector General.--There is authorized to be 
appropriated to the corporation's Office of Inspector General 
$24,000,000 for fiscal year 2020, which shall remain available through 
September 30, 2028, for salaries and expenses necessary for conducting 
investigations and audits of the implementation and administration of 
this section.
    ``(r) Application of Excise Tax.--During the period that a plan is 
subject to a partition order under this section and prior to a 
cessation of adjustments pursuant to subsection (i)(3), the plan shall 
not be subject to section 4971 of the Internal Revenue Code of 1986.''.

SEC. 3. REPEAL OF BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN 
              CRITICAL AND DECLINING STATUS.

    (a) Amendment to Internal Revenue Code of 1986.--Paragraph (9) of 
section 432(e) of the Internal Revenue Code of 1986 is repealed.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Paragraph (9) of section 305(e) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1085(e)) is repealed.
    (c) Effective Date.--The repeals made by this section shall not 
apply to plans that have been approved for a suspension of benefit 
under section 432(e)(9)(G) of the Internal Revenue Code of 1986 and 
section 305(e)(9)(G) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1085(e)(9)(G)) before the date of the enactment of this 
Act.

SEC. 4. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS IN 
              ENDANGERED, CRITICAL, OR CRITICAL AND DECLINING STATUS.

    (a) In General.--Notwithstanding the actuarial certification under 
section 305(b)(3) of the Employee Retirement Income Security Act of 
1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a 
plan sponsor of a multiemployer plan elects the application of this 
section, then, for purposes of section 305 of such Act and section 432 
of such Code--
            (1) the status of the plan for its first plan year 
        beginning during the period beginning on March 1, 2020, and 
        ending on February 28, 2021, or the next succeeding plan year 
        (as designated by the plan sponsor in such election), shall be 
        the same as the status of such plan under such sections for the 
        plan year preceding such designated plan year, and
            (2) in the case of a plan which was in endangered or 
        critical status for the plan year preceding the designated plan 
        year described in paragraph (1), the plan shall not be required 
        to update its plan or schedules under section 305(c)(6) of such 
        Act and section 432(c)(6) of such Code, or section 305(e)(3)(B) 
        of such Act and section 432(e)(3)(B) of such Code, whichever is 
        applicable, until the plan year following the designated plan 
        year described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 1986 did not apply to 
the plan year preceding the designated plan year described in paragraph 
(1), the plan actuary shall make a certification of the status of the 
plan under section 305(b)(3) of such Act and section 432(b)(3) of such 
Code for the preceding plan year in the same manner as if such sections 
had applied to such preceding plan year.
    (b) Exception for Plans Becoming Critical During Election.--If--
            (1) an election was made under subsection (a) with respect 
        to a multiemployer plan, and
            (2) such plan has, without regard to such election, been 
        certified by the plan actuary under section 305(b)(3) of the 
        Employee Retirement Income Security Act of 1974 and section 
        432(b)(3) of the Internal Revenue Code of 1986 to be in 
        critical status for the designated plan year described in 
        subsection (a)(1), then such plan shall be treated as a plan in 
        critical status for such plan year for purposes of applying 
        section 4971(g)(1)(A) of such Code, section 302(b)(3) of such 
        Act (without regard to the second sentence thereof), and 
        section 412(b)(3) of such Code (without regard to the second 
        sentence thereof).
    (c) Election and Notice.--
            (1) Election.--An election under subsection (a)--
                    (A) shall be made at such time and in such manner 
                as the Secretary of the Treasury or the Secretary's 
                delegate may prescribe and, once made, may be revoked 
                only with the consent of the Secretary, and
                    (B) if made--
                            (i) before the date the annual 
                        certification is submitted to the Secretary or 
                        the Secretary's delegate under section 
                        305(b)(3) of such Act and section 432(b)(3) of 
                        such Code, shall be included with such annual 
                        certification, and
                            (ii) after such date, shall be submitted to 
                        the Secretary or the Secretary's delegate not 
                        later than 30 days after the date of the 
                        election.
            (2) Notice to participants.--
                    (A) In general.--Notwithstanding section 
                305(b)(3)(D) of the Employee Retirement Income Security 
                Act of 1974 and section 432(b)(3)(D) of the Internal 
                Revenue Code of 1986, if the plan is neither in 
                endangered nor critical status by reason of an election 
                made under subsection (a)--
                            (i) the plan sponsor of a multiemployer 
                        plan shall not be required to provide notice 
                        under such sections, and
                            (ii) the plan sponsor shall provide to the 
                        participants and beneficiaries, the bargaining 
                        parties, the Pension Benefit Guaranty 
                        Corporation, and the Secretary of Labor a 
                        notice of the election under subsection (a) and 
                        such other information as the Secretary of the 
                        Treasury (in consultation with the Secretary of 
                        Labor) may require--
                                    (I) if the election is made before 
                                the date the annual certification is 
                                submitted to the Secretary or the 
                                Secretary's delegate under section 
                                305(b)(3) of such Act and section 
                                432(b)(3) of such Code, not later than 
                                30 days after the date of the 
                                certification, and
                                    (II) if the election is made after 
                                such date, not later than 30 days after 
                                the date of the election.
                    (B) Notice of endangered status.--Notwithstanding 
                section 305(b)(3)(D) of such Act and section 
                432(b)(3)(D) of such Code, if the plan is certified to 
                be in critical status for any plan year but is in 
                endangered status by reason of an election made under 
                subsection (a), the notice provided under such sections 
                shall be the notice which would have been provided if 
                the plan had been certified to be in endangered status.

SEC. 5. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND 
              REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN 
              CRITICAL AND ENDANGERED STATUS FOR 2020 OR 2021.

    (a) In General.--If the plan sponsor of a multiemployer plan which 
is in endangered or critical status for a plan year beginning in 2020 
or 2021 (determined after application of section 4) elects the 
application of this section, then, for purposes of section 305 of the 
Employee Retirement Income Security Act of 1974 and section 432 of the 
Internal Revenue Code of 1986--
            (1) except as provided in paragraph (2), the plan's funding 
        improvement period or rehabilitation period, whichever is 
        applicable, shall be 15 years rather than 10 years, and
            (2) in the case of a plan in seriously endangered status, 
        the plan's funding improvement period shall be 20 years rather 
        than 15 years.
    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Election.--An election under this section shall be made 
        at such time, and in such manner and form, as (in consultation 
        with the Secretary of Labor) the Secretary of the Treasury or 
        the Secretary's delegate may prescribe.
            (2) Definitions.--Any term which is used in this section 
        which is also used in section 305 of the Employee Retirement 
        Income Security Act of 1974 and section 432 of the Internal 
        Revenue Code of 1986 shall have the same meaning as when used 
        in such sections.
    (c) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2019.

SEC. 6. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

    (a) Adjustments.--
            (1) Amendment to employee retirement income security act of 
        1974.--Section 304(b)(8) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1084(b)) is amended by adding 
        at the end the following new subparagraph:
                    ``(F) Relief for 2020 and 2021.--A multiemployer 
                plan with respect to which the solvency test under 
                subparagraph (C) is met as of February 29, 2020, may 
                elect to apply this paragraph by substituting `February 
                29, 2020' for `August 31, 2008' each place it appears 
                in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II) 
                (without regard to whether such plan previously elected 
                the application of this paragraph). The preceding 
                sentence shall not apply to a plan with respect to 
                which a partition order is in effect under section 
                4233A.''.
            (2) Amendment to internal revenue code of 1986.--Section 
        431(b)(8) of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new subparagraph:
                    ``(F) Relief for 2020 and 2021.--A multiemployer 
                plan with respect to which the solvency test under 
                subparagraph (C) is met as of February 29, 2020, may 
                elect to apply this paragraph by substituting `February 
                29, 2020' for `August 31, 2008' each place it appears 
                in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II) 
                (without regard to whether such plan previously elected 
                the application of this paragraph). The preceding 
                sentence shall not apply to a plan with respect to 
                which a partition order is in effect under section 
                4233A of the Employee Retirement Income Security Act of 
                1974.''.
    (b) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        take effect as of the first day of the first plan year ending 
        on or after February 29, 2020, except that any election a plan 
        makes pursuant to this section that affects the plan's funding 
        standard account for the first plan year beginning after 
        February 29, 2020, shall be disregarded for purposes of 
        applying the provisions of section 305 of the Employee 
        Retirement Income Security Act of 1974 and section 432 of the 
        Internal Revenue Code of 1986 to such plan year.
            (2) Restrictions on benefit increases.--Notwithstanding 
        paragraph (1), the restrictions on plan amendments increasing 
        benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D) 
        of such Code, as applied by the amendments made by this 
        section, shall take effect on the date of enactment of this 
        Act.

SEC. 7. PBGC GUARANTEE FOR PARTICIPANTS IN MULTIEMPLOYER PLANS.

    Section 4022A(c)(1) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1322a(c)(1)) is amended by striking subparagraphs 
(A) and (B) and inserting the following:
                    ``(A) 100 percent of the accrual rate up to $15, 
                plus 75 percent of the lesser of--
                            ``(i) $70; or
                            ``(ii) the accrual rate, if any, in excess 
                        of $15; and
                    ``(B) the number of the participant's years of 
                credited service.
        For each calendar year after the first full calendar year 
        following the date of the enactment of the Butch Lewis 
        Emergency Pension Plan Relief Act of 2021, the accrual rates in 
        subparagraph (A) shall increase by the national average wage 
        index (as defined in section 209(k)(1) of the Social Security 
        Act). For purposes of this subsection, the rates applicable for 
        determining the guaranteed benefits of the participants of any 
        plan shall be the rates in effect for the calendar year in 
        which the plan becomes insolvent under section 4245 or the 
        calendar year in which the plan is terminated, if earlier.''.
                                 <all>