,i #aaeth ,,congress #ast ,session ,h4 ,r4 #bchd ,,in ,,the ,,house ,,of ,,representatives ,may #d1 #bjag,mr4 ,nolan introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce1 and in addition to the ,committees on ,ways and ,means1 and the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf to modify certain provisions relating to multiemployer pensions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,keeping ,america's ,pension ,promises ,act4 #b4 ,restoring anti-cutback provisions ,section #bja of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce7 and the amendments made by such section are repealed1 and the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf shall be applied as if such section and amendments had never been enacted4 #c4 ,partitions of eligible multiemployer plans 7a7 ,in general ,section #dbcc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac71 as amended by section #abb of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce71 is amended to read as follows3 #dbcc4 ,partitions of eligible multiemployer plans 7a7 7#a7 ,upon the application by the plan sponsor of an eligible multiemployer plan for a partition of the plan1 the corporation may order a partition of the plan in accordance with this section4 ,the corporation shall make a determination regarding the application1 in accordance with regulations promulgated by the corporation1 not later than #bgj days after-- 7,a7 the date such application was filed2 or 7,b7 if later1 the date such application was completed4 7#b7 ,at least #ad days before submitting an application for partition of a plan under paragraph 7#a71 the plan sponsor of the plan shall notify all participants and beneficiaries of such application1 in the form and manner prescribed by regulations issued by the corporation4 7b7 ,for purposes of this section1 a multiemployer plan is an eligible multiemployer plan if-- 7#a7 the plan is in critical status and is projected to become insolvent within the meaning of section #dbde-- 7,a7 during the current plan year or any of the #ad succeeding plan years2 or 7,b7 during the current plan year or any of the #ai succeeding plan years1 if the plan has a ratio of inactive participants to active participants that exceeds #b to #a and the funded percentage of the plan is less than #hj percent2 7#b7 the corporation determines1 after consultation with the ,participant and ,plan ,sponsor ,advocate selected under section #djjd1 that the plan sponsor has taken 7or is taking concurrently with an application for partition7 all reasonable measures described in section #dcb7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 and has made 7or is making7 benefit adjustments under section #dcb7;e77#h7 of such ,code to reduce the risk of insolvency2 7#c7 #bj percent or more of the amount by which the liabilities of the plan exceed the value of plan assets is attributable to the service of participants whose employers-- 7,a7 withdrew from the plan prior to the date of enactment of the ,keeping ,america's ,pension ,promises ,act2 and 7,b7 failed to pay 7or are delinquent with respect to paying7 the full amount of the employer's withdrawal liability under section #dbja7;b77#a7 or as otherwise determined under an agreement with the plan2 7#d7 the corporation reasonably expects that-- 7,a7 a partition of the plan will reduce the corporation's expected long-term loss with respect to the plan2 and 7,b7 a partition of the plan is necessary for the plan to remain or become solvent2 and 7#e7 the corporation certifies to ,congress that after partition the corporation will continue to have the ability to meet existing financial assistance obligations to other plans 7including any liabilities associated with multiemployer plans that are insolvent or that are projected to become insolvent within #aj years74 7c7 7#a7 ,a partition under this section shall consist of a transfer to the plan created by the partition order of benefits to which eligible participants and beneficiaries were entitled under the plan that was partitioned1 in an amount not to exceed the amount that would be guaranteed under section #djbb;,a if the plan were insolvent as of the date of the partition order4 7#b7 ,the corporation's partition order shall provide for an annual transfer by the corporation to the plan created by the partition order of an amount equal to the yearly benefits that would be guaranteed under section #djbb;,a to the eligible participants and beneficiaries if the plan were insolvent as of the date of the partition order4 7#c7 7,a7 ,where practicable1 the initial transfer in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the plan year that immediately follows the partition start date4 ,the partition order shall require that the initial transfer be sufficient to satisfy the guaranteed benefits in the first plan year of the partitioned plan4 7,b7 ,subsequent transfers in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the first day of each succeeding plan year4 7d7 7#a7 7,a7 ,the plan created by the partition order is a successor plan to which section #djbb;,a applies4 7,b7 ,at the discretion of the plan sponsor1 the plan created by the partition order may remain a part of the plan that was partitioned or be maintained as a separate plan4 7#b7 7,a7 ,the plan sponsor and the administrator of an eligible multiemployer plan prior to the partition shall be the plan sponsor and the administrator1 respectively1 of the plan created by the partition order1 and shall adopt reasonable procedures to reduce administrative expenses and to coordinate benefit payments and communications with the participants and beneficiaries in the plan created by the partition order4 7,b7 ,benefit payments equal to the amount of an eligible participant or beneficiary's guaranteed benefits shall be paid to such participant or beneficiary and may be-- 7i7 paid separately by the plan created by the partition order2 or 7ii7 paid in a single1 monthly payment by the plan that was partitioned4 7#c7 ,in the event an employer withdraws from the plan that was partitioned1 withdrawal liability shall be computed under section #dbja with respect to both the plan that was partitioned and the plan created by the partition order4 7e7 ,in addition to the payment of guaranteed benefits under subsection 7d77#b77;,b71 each eligible participant or beneficiary of the plan created by the partition order shall receive a monthly benefit for each month the benefit is in pay status in an amount that-- 7#a7 the corporation1 in consultation with the ,participant and ,plan ,sponsor ,advocate1 determines to be fair to the plan1 the participant or beneficiary1 the employers1 and the corporation2 and 7#b7 is at least equal to the lesser of-- 7,a7 the monthly nonforfeitable benefit for such participant or beneficiary payable under the plan that was partitioned2 or 7,b7 #hj percent of the maximum benefit commencing at age #fe guaranteed under section #djbb7;a7 for participants and beneficiaries in terminated single employer plans1 unreduced for early retirement4 ,such monthly benefit may be combined with the monthly payment under subsection 7d77#b77;,b77ii74 7f7 7#a7 ,the corporation shall establish a legacy fund for the purposes of funding the administrative and benefit costs to the corporation arising from partitions under this section1 as described in paragraph 7#b74 7#b7 ,any administrative and benefit costs to the corporation arising from a partition ordered under this section in excess of amounts available in such legacy fund shall be paid from the fund for basic benefits guaranteed for multiemployer plans4 7g7 ,only one partition order shall be issued with respect to each eligible multiemployer plan4 7h7 ,for purposes of this subsection1 the term eligible participant or beneficiary means a participant or beneficiary of an eligible multiemployer plan that is partitioned in accordance with a petition order under this section1 and who is an employee or beneficiary of an employee of an employer that is described in subsection 7b77#c74 7i7 ,not later than #ad days after the issuance of a partition order under this section1 the corporation shall provide notice of such order to the ,committee on ,finance of the ,senate1 the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate1 the ,committee on ,education and the ,workforce of the ,house of ,representatives1 the ,committee on ,ways and ,means of the ,house of ,representatives1 and to all eligible participants or beneficiaries whose guaranteed benefits will be paid directly or indirectly by the plan created by the partition order4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply with respect to plan years beginning after the date of enactment of this ,act4 7c7 ,transfers to legacy fund ,the ,secretary of the ,treasury shall from time to time transfer from the general fund of the ,treasury to the legacy fund established under section #dbcc7;f77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac7;f77#a77 7as amended by subsection 7a77 amounts equal to the increase in revenues to the ,treasury by reason of the amendments made by sections #f and #g of this ,act4 7d7 ,transfers between funds of the ,,pbgc ,section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje7 is amended by adding at the end the following3 7i7 7#a7 ,an eighth fund is established under section #dbcc7;f7 and credited with the amounts described in section #c7;c7 of the ,keeping ,america's ,pension ,promises ,act4 7#b7 ,notwithstanding subsection 7g71 the corporation may transfer amounts into the legacy fund established under section #dbcc7;f77#a7 from other funds established under this section1 as the corporation determines appropriate4 4 #d4 ,employer withdrawals relating to multiemployer plans ,the matter preceding paragraph 7#a7 of section #dbbe7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adje7;b77 is amended by inserting 1 including an employer undergoing liquidation under chapter #g of title #aa1 ,united ,states ,code1 or similar provisions of ,state law1 after dissolution14 #e4 ,priorities of claims in bankruptcy 7a7 ,in general ,section #ejg7;a7 of title #aa1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraphs 7#a7 through #aj as paragraphs 7#b7 through 7#aa71 respectively2 7#b7 by inserting before paragraph 7#b7 7as redesignated7 the following3 7#a7 ,first1 withdrawal liability determined under part #a of subtitle ,e of title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha et seq474 2 7#c7 in the matter preceding subparagraph 7,a7 of paragraph 7#b7 7as redesignated71 by striking ,first3 and inserting ,second32 7#d7 in paragraph 7#c7 7as redesignated71 by striking ,second1 and inserting ,third12 7#e7 in paragraph 7#d7 7as redesignated71 by striking ,third1 and inserting ,fourth12 7#f7 in the matter preceding subparagraph 7,a7 of paragraph 7#e7 7as redesignated71 by striking ,fourth1 and inserting ,fifth12 7#g7 in the matter preceding subparagraph 7,a7 of paragraph 7#f7 7as redesignated71 by striking ,fifth1 and inserting ,sixth12 7#h7 in the matter preceding subparagraph 7,a7 of paragraph 7#g7 7as redesignated71 by striking ,sixth1 and inserting ,seventh12 7#i7 in paragraph 7#h7 7as redesignated71 by striking ,seventh1 and inserting ,eighth12 7#aj7 in the matter preceding subparagraph 7,a7 of paragraph 7#i7 7as redesignated71 by striking ,eighth1 and inserting ,ninth12 7#aa7 in paragraph 7#aj7 7as redesignated71 by striking ,ninth1 and inserting ,tenth12 and 7#ab7 in paragraph 7#aa7 7as redesignated71 by striking ,tenth1 and inserting ,eleventh14 7b7 ,technical and conforming amendments 7#a7 ,section #ejb7;i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#b7 ,section #ejc7;b77#a77;,b77i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#c7 ,section #ejg7;d7 of title #aa1 ,united ,states ,code1 is amended by striking 7a77#a71 7a77#d71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 or 7a77#i7 and inserting 7a77#b71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 7a77#i71 or 7a77#aj74 7#d7 ,section #ebc7;,a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#c7 or #ejg7;a77#h7 and inserting section #ejg7;a77#d7 or #ejg7;a77#i74 7#e7 ,section #gbd of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7b77#b71 by striking section #ejg7;a77#a77;,c7 or #ejg7;a77#b7 and inserting section #ejg7;a77#b77;,c7 or #ejg7;a77#c72 and 7,b7 in subsection 7f7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#d7 and inserting section #ejg7;a77#e72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#e7 and inserting section #ejg7;a77#f74 7#f7 ,section #gbf7;b7 of title #aa1 ,united ,states ,code1 is amended by striking paragraph 7#a71 7#b71 7#c71 7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 or 7#aj7 of section #ejg7;a7 and inserting paragraph 7#b71 7#c71 7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 7#aj71 or 7#aa7 of section #ejg7;a74 7#g7 ,section #geb7;a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#h7 ,section #gff of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7h71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7,b7 in subsection 7i7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#i7 ,section #ija of title #aa1 ,united ,states ,code1 is amended by striking #ejg7;a77#b7 and inserting #ejg7;a77#c74 7#aj7 ,section #idc7;b77#e7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#aa7 ,section #aabc7;a77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b71 #ejg7;a77#c71 or #ejg7;a77#h7 and inserting section #ejg7;a77#c71 #ejg7;a77#d71 or #ejg7;a77#i74 7#ab7 ,section #aabi7;a77#i7 of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,a71 by striking section #ejg7;a77#c7 or #ejg7;a77#d7 and inserting section #ejg7;a77#d7 or #ejg7;a77#e72 7,b7 in the matter preceding clause 7i7 of subparagraph 7,b71 by striking section #ejg7;a77#a71 #ejg7;a77#d71 #ejg7;a77#e71 #ejg7;a77#f71 or #ejg7;a77#g7 and inserting section #ejg7;a77#b71 #ejg7;a77#e71 #ejg7;a77#f71 #ejg7;a77#g71 or #ejg7;a77#h72 7,c7 in the matter preceding clause 7i7 of subparagraph 7,c71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i72 and 7,d7 in subparagraph 7,d71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#ac7 ,section #abbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting #ejg7;a77#b77;,b74 7#ad7 ,section #abbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ae7 ,section #acbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting section #ejg7;a77#b77;,b74 7#af7 ,section #acbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ag7 ,section #acbh7;a77#b7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h77;,c7 and inserting section #ejg7;a77#i77;,c74 #f4 ,transaction tax 7a7 ,in general ,chapter #cf of the ,internal ,revenue ,code of #aihf is amended by inserting after subchapter ,b the following new subchapter3 ,c ,tax on ,trading ,transactions ,sec4 #ddge4 ,tax on trading transactions4 #ddge4 ,tax on trading transactions 7a7 ,imposition of tax ,there is hereby imposed a tax on each covered transaction with respect to any security4 7b7 ,rate of tax ,the tax imposed under subsection 7a7 with respect to any covered transaction shall be #j4jc percent of the specified base amount with respect to such covered transaction4 7c7 ,specified base amount ,for purposes of this section1 the term specified base amount means-- 7#a7 except as provided in paragraph 7#b71 the fair market value of the security 7determined as of the time of the covered transaction71 and 7#b7 in the case of any payment described in subsection 7h71 the amount of such payment4 7d7 ,covered transaction ,for purposes of this section1 the term covered transaction means-- 7#a7 except as provided in paragraph 7#b71 any purchase if-- 7,a7 such purchase occurs or is cleared on a facility located in the ,united ,states1 or 7,b7 the purchaser or seller is a ,united ,states person1 and 7#b7 any transaction with respect to a security described in subparagraph 7,d71 7,e71 or 7,f7 of subsection 7e77#a71 if-- 7,a7 such security is traded or cleared on a facility located in the ,united ,states1 or 7,b7 any party with rights under such security is a ,united ,states person4 7e7 ,security and other definitions ,for purposes of this section-- 7#a7 ,in general ,the term security means-- 7,a7 any share of stock in a corporation1 7,b7 any partnership or beneficial ownership interest in a partnership or trust1 7,c7 any note1 bond1 debenture1 or other evidence of indebtedness1 7,d7 any evidence of an interest in1 or a derivative financial instrument with respect to1 any security or securities described in subparagraph 7,a71 7,b71 or 7,c71 7,e7 any derivative financial instrument with respect to any currency or commodity1 and 7,f7 any other derivative financial instrument any payment with respect to which is calculated by reference to any specified index4 7#b7 ,derivative financial instrument ,the term derivative financial instrument includes any option1 forward contract1 futures contract1 notional principal contract1 or any similar financial instrument4 7#c7 ,specified index ,the term specified index means any one or more of any combination of-- 7,a7 a fixed rate1 price1 or amount1 or 7,b7 a variable rate1 price1 or amount1 which is based on any current objectively determinable information which is not within the control of any of the parties to the contract or instrument and is not unique to any of the parties' circumstances4 7#d7 ,treatment of exchanges 7,a7 ,in general ,an exchange shall be treated as the sale of the property transferred and a purchase of the property received by each party to the exchange4 7,b7 ,certain deemed exchanges ,in the case of a distribution treated as an exchange for stock under section #cjb or #cca1 the corporation making such distribution shall be treated as having purchased such stock for purposes of this section4 7f7 ,exceptions 7#a7 ,exception for initial issues ,no tax shall be imposed under subsection 7a7 on any covered transaction with respect to the initial issuance of any security described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7e77#a74 7#b7 ,exception for certain traded short-term indebtedness ,a note1 bond1 debenture1 or other evidence of indebtedness which-- 7,a7 is traded on a trading facility located in the ,united ,states1 and 7,b7 has a fixed maturity of not more than #ajj days1 shall not be treated as described in subsection 7e77#a77;,c74 7#c7 ,exception for securities lending arrangements ,no tax shall be imposed under subsection 7a7 on any covered transaction with respect to which gain or loss is not recognized by reason of section #ajeh4 7g7 ,by whom paid 7#a7 ,in general ,the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction which occurs or is cleared on a facility located in the ,united ,states1 such facility1 and 7,b7 in the case of a purchase not described in subparagraph 7,a7 which is executed by a broker 7as defined in section #fjde7;c77#a77 which is a ,united ,states person1 such broker4 7#b7 ,special rules for direct1 etc41 transactions ,in the case of any transaction to which paragraph 7#a7 does not apply1 the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction described in subsection 7d77#a7-- 7i7 the purchaser if the purchaser is a ,united ,states person1 and 7ii7 the seller if the purchaser is not a ,united ,states person1 and 7,b7 in the case of a transaction described in subsection 7d77#b7-- 7i7 the payor if the payor is a ,united ,states person1 and 7ii7 the payee if the payor is not a ,united ,states person4 7h7 ,certain payments treated as separate transactions ,except as otherwise provided by the ,secretary1 any payment with respect to a security described in subparagraph 7,d71 7,e71 or 7,f7 of subsection 7e77#a7 shall be treated as a separate transaction for purposes of this section1 including-- 7#a7 any net initial payment1 net final or terminating payment1 or net periodical payment with respect to a notional principal contract 7or similar financial instrument71 7#b7 any payment with respect to any forward contract 7or similar financial instrument71 and 7#c7 any premium paid with respect to any option 7or similar financial instrument74 7i7 ,administration ,the ,secretary shall carry out this section in consultation with the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission4 7j7 ,guidance2 regulations ,the ,secretary shall-- 7#a7 provide guidance regarding such information reporting concerning covered transactions as the ,secretary deems appropriate1 and 7#b7 prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section1 including the use of non-,united ,states persons in such transactions4 4 7b7 ,clerical amendment ,the table of subchapters for chapter #cf of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to subchapter ,b the following new item3 ,subchapter ,c4 ,tax on trading transactions 4 7c7 ,effective date ,the amendments made by this section shall apply to transactions made after ,december #ca1 #bjag4