Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to authorize the Pension Benefit Guaranty Corporation (PBGC), provided certain conditions are met, to allow the sponsor of an underfunded multiemployer benefit plan to accept from an employer a ratified collective bargaining agreement that provides for a reduction in plan employer contributions as well as appropriate reduction in the level of future benefit accruals for plan participants for up to five years during the plan funding adoption period, funding improvement period, rehabilitation adoption period, and rehabilitation period.
Conditions such an allowance upon the PBGC's determination that: (1) the contributing employer will be unable to pay its debts when due and to continue business without a reduction in its contribution rates; (2) the contributing employer's aggregate withdrawal liability with respect to all multiemployer pension plans exceeds $750 million (or an appropriate lower amount as the PBGC may determine); (3) the collectability of the withdrawal liability is very doubtful if the contributing employer were to withdraw from the plan; (4) the reduced contributions are not reasonably expected to have an adverse effect on the PBGC deficit; and (5) other creditors, stakeholders, and parties to which the contributing employer is obligated have accepted comparable reductions.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1969 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1969
To provide for private-sector solutions to certain pension funding
challenges, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2011
Ms. Jenkins (for herself, Mr. Cleaver, and Mr. Yoder) introduced the
following bill; which was referred to the Committee on Education and
the Workforce, and in addition to the Committee on Ways and Means, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide for private-sector solutions to certain pension funding
challenges, 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. REDUCTIONS IN CONTRIBUTIONS TO MULTIEMPLOYER PLANS TO
IMPLEMENT SELF-HELP MEASURES ADOPTED BY LABOR AND
MANAGEMENT.
(a) Amendments to ERISA.--Section 305 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1085) is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``(i) Discretion To Accept Reduced Contributions.--
``(1) In general.--Notwithstanding any other provision of
this section, during the funding plan adoption period, funding
improvement period, rehabilitation plan adoption period, and
the rehabilitation period, the Pension Benefit Guaranty
Corporation may permit a plan sponsor to accept from an
employer a ratified collective bargaining agreement with
respect to the multiemployer plan that provides for a reduction
in the level of contributions made by a contributing employer
and appropriate reduction in level of future benefit accruals
for any participants for a period of not more than 5 years (or
such shorter period as determined by such Corporation) provided
that such Corporation determines that--
``(A) the contributing employer will be unable to
pay its debts when due and will be unable to continue
business without a reduction in its contribution rates;
``(B) the aggregate withdrawal liability of the
contributing employer with respect to all multiemployer
pension plans exceeds $750,000,000, or such lower
amount as determined to be appropriate by such
Corporation;
``(C) there is substantial doubt as to the
collectability of the withdrawal liability if the
contributing employer were to withdraw from the plan;
``(D) the reduced contributions are not reasonably
expected to have an adverse effect on the deficit of
such Corporation;
``(E) other creditors, stakeholders, and other
parties to which the contributing employer is obligated
have accepted reductions that are comparable to those
of the pension plan; and
``(F) such other conditions are satisfied as may be
imposed in accordance with regulations prescribed by
such Corporation.
``(2) Impact on withdrawal liability determinations.--Any
reduction in the level of contributions under this subsection
shall be disregarded in determining any limitation on annual
payments under subparagraphs (B) and (C) of section 4219(c)(1)
and in determining withdrawal liability under section 4201 with
respect to the employer subject to the reduced contribution
rate.''.
(b) Amendments to Internal Revenue Code.--Section 432 of the
Internal Revenue Code of 1986 is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``(i) Discretion To Accept Reduced Contributions.--
``(1) In general.--Notwithstanding any other provision of
this section, during the funding plan adoption period, funding
improvement period, rehabilitation plan adoption period, and
the rehabilitation period, the Pension Benefit Guaranty
Corporation may permit a plan sponsor to accept from an
employer a ratified collective bargaining agreement with
respect to the multiemployer plan that provides for a reduction
in the level of contributions made by a contributing employer
and appropriate reduction in level of future benefit accruals
for any participants for a period of not more than 5 years (or
such shorter period as determined by such Corporation) provided
that such Corporation determines that--
``(A) the contributing employer will be unable to
pay its debts when due and will be unable to continue
business without a reduction in its contribution rates;
``(B) the aggregate withdrawal liability of the
contributing employer with respect to all multiemployer
pension plans exceeds $750,000,000, or such lower
amount as determined by such Corporation;
``(C) there is substantial doubt as to the
collectability of the withdrawal liability if the
contributing employer were to withdraw from the plan;
``(D) the reduced contributions are not reasonably
expected to have an adverse effect on the deficit of
such Corporation;
``(E) other creditors, stakeholders, and other
parties to which the contributing employer is obligated
have accepted reductions that are comparable to those
of the pension plan; and
``(F) such other conditions are satisfied as may be
imposed in accordance with regulations prescribed by
such Corporation.
``(2) Impact on withdrawal liability determinations.--Any
reduction in the level of contributions under this subsection
shall be disregarded in determining any limitation on annual
payments under subparagraphs (B) and (C) of section 4219(c)(1)
of the Employee Retirement Income Security Act of 1974 and in
determining withdrawal liability under section 4201 of such Act
with respect to the employer subject to the reduced
contribution rate.''.
(c) Technical and Conforming Amendments.--
(1) Section 4971(g)(4)(C)(ii) of the Internal Revenue Code
of 1986 is amended by striking ``432(i)(9)'' and inserting
``432(j)(9)''.
(2) Sections 101(f)(2)(B) and 103(f)(1)(B) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B)
and 1023(f)(1)(B)) are each amended by striking ``305(i)'' each
place such term appears and inserting ``305(j)''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line