Pension Accountability Act

Bill: 114-s-2147
Sponsor: full_name: Sen. Portman, Rob [R-OH]
Introduced: 2015-10-07
Policy area: Labor and Employment
Subjects: Employee benefits and pensions
Latest action: action_date: 2015-10-07
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2015-10-07
action_desc: Introduced in Senate
text: <p><strong>Pension Accountability Act</strong> </p> <p>This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to revise rules for voting on the suspension of pension benefits under multiemployer plans in endangered or critical status. The bill changes the voting procedure for suspending plan benefits to provide that a suspension shall go into effect unless a majority of plan participants and beneficiaries who cast a vote (currently, a majority of all plan participants and beneficiaries) reject the suspension. The bill also eliminates the authority of the Department of the Treasury, in the case of systemically important plans, to override a vote of plan participants to reject a suspension. A plan is systemically important if projected financial assistance to the plan will exceed $1 billion if suspensions are not implemented. </p>

tv_txt: II 114th CONGRESS 1st Session S. 2147 IN THE SENATE OF THE UNITED STATES October 7, 2015 Mr. Portman (for himself and Mr. Burr ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 with respect to participant votes on the suspension of benefits under multiemployer plans in critical and declining status.

1. Short title This Act may be cited as the Pension Accountability Act . 2. Benefit suspensions for multiemployer plans in critical and declining status (a) ERISA amendments Section 305(e)(9)(H) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(e)(9)(H) ) is amended— (1) in clause (ii)— (A) by striking Except as provided in clause (v), the and inserting The ; and (B) by striking a majority of all participants and beneficiaries of the plan and inserting , of the participants and beneficiaries of the plan who cast a vote, a majority ; (2) by striking clause (v); (3) by redesignating clause (vi) as clause (v); and (4) in clause (v), as so redesignated— (A) by striking (or following a determination under clause (v) that the plan is a systemically important plan) ; and (B) by striking (or, in the case of a suspension that goes into effect under clause (v), at a time sufficient to allow the implementation of the suspension prior to the end of the 90-day period described in clause (v)(I)) . (b) IRC amendments Section 432(e)(9)(H) of the Internal Revenue Code of 1986 is amended— (1) in clause (ii)— (A) by striking Except as provided in clause (v), the and inserting The ; and (B) by striking a majority of all participants and beneficiaries of the plan and inserting , of the participants and beneficiaries of the plan who cast a vote, a majority ; (2) by striking clause (v); (3) by redesignating clause (vi) as clause (v); and (4) in clause (v), as so redesignated— (A) by striking (or following a determination under clause (v) that the plan is a systemically important plan) ; and (B) by striking (or, in the case of a suspension that goes into effect under clause (v), at a time sufficient to allow the implementation of the suspension prior to the end of the 90-day period described in clause (v)(I)) . (c) Effective date The amendments made by subsections (a) and (b) shall apply to any vote on the suspension of benefits under section 305(e)(9)(H) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(e)(9)(H) ) and section 432(e)(9)(H) of the Internal Revenue Code of 1986 that occurs after the date of enactment of this Act.