,,ii  ,calendar ,no4 #cij #aafth        
,,congress  #ast ,session  ,h4 ,r4 #cig 
,,in ,,the ,,senate ,,of ,,the ,,united 
,,states  ,july #be1 #bjai,received     
,december #ah1 #bjai,read the first time
  ,december #ai1 #bjai,read the second  
time and placed on the calendar  ,,an   
,,act  ,to amend the ,internal ,revenue 
,code of #aihf to create a ,pension     
,rehabilitation ,trust ,fund1 to        
establish a ,pension ,rehabilitation    
,administration within the ,department  
of the ,treasury to make loans to       
multiemployer defined benefit plans1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the          
,rehabilitation for ,multiemployer      
,pensions ,act of #bjai4  #b4 ,pension  
,rehabilitation ,administration2        
establishment2 powers  7a7              
,establishment ,there is established in 
the ,department of the ,treasury an     
agency to be known as the ,pension      
,rehabilitation ,administration4  7b7   
,director  7#a7 ,establishment of       

position ,there shall be at the head of 
the ,pension ,rehabilitation            
,administration a ,director1 who shall  
be appointed by the ,president4  7#b7   
,term  7,a7 ,in general ,the term of    
office of the ,director shall be #e     
years4  7,b7 ,service until appointment 
of successor ,an individual serving as  
,director at the expiration of a term   
may continue to serve until a successor 
is appointed4  7#c7 ,powers  7,a7       
,appointment of ,deputy ,directors1     
officers1 and employees ,the ,director  
may appoint ,deputy ,directors1         
officers1 and employees1 including      
attorneys1 in accordance with chapter   
#ea and subchapter ,,iii of chapter #ec 
of title #e1 ,united ,states ,code4     
7,b7 ,contracting  7i7 ,in general ,the 
,director may contract for financial and
 administrative services 7including     
those related to budget and accounting1 
financial reporting1 personnel1 and     
procurement7 with the ,general ,services
 ,administration1 or such other ,federal

 agency as the ,director determines     
appropriate1 for which payment shall be 
made in advance1 or by reimbursement1   
from funds of the ,pension              
,rehabilitation ,administration in such 
amounts as may be agreed upon by the    
,director and the head of the ,federal  
agency providing the services4  7ii7    
,subject to appropriations ,contract    
authority under clause 7i7 shall be     
effective for any fiscal year only to   
the extent that appropriations are      
available for that purpose4  #c4        
,pension ,rehabilitation ,trust ,fund   
7a7 ,in general ,subchapter ,a of       
chapter #ih of the ,internal ,revenue   
,code of #aihf is amended by adding at  
the end the following new section3      
#ieab4 ,pension ,rehabilitation ,trust  
,fund  7a7 ,creation of ,trust ,fund    
,there is established in the ,treasury  
of the ,united ,states a trust fund to  
be known as the ,pension ,rehabilitation
 ,trust ,fund 7hereafter in this section
 referred to as the ,fund71 consisting  

of such amounts as may be appropriated  
or credited to the ,fund as provided in 
this section and section #ifjb7;b74  7b7
 ,transfers to ,fund  7#a7 ,amounts     
attributable to ,treasury bonds ,there  
shall be credited to the ,fund the      
amounts transferred under section #f of 
the ,rehabilitation for ,multiemployer  
,pensions ,act of #bjai4  7#b7 ,loan    
interest and principal  7,a7 ,in general
 ,the ,director of the ,pension         
,rehabilitation ,administration         
established under section #b of the     
,rehabilitation for ,multiemployer      
,pensions ,act of #bjai shall deposit in
 the ,fund any amounts received from a  
plan as payment of interest or principal
 on a loan under section #d of such     
,act4  7,b7 ,interest ,for purposes of  
subparagraph 7,a71 the term interest    
includes points and other similar       
amounts4  7#c7 ,availability of funds   
,amounts credited to or deposited in the
 ,fund shall remain available until     
expended4  7c7 ,expenditures from ,fund 

,amounts in the ,fund are available     
without further appropriation to the    
,pension ,rehabilitation                
,administration--  7#a7 for the purpose 
of making the loans described in section
 #d of the ,rehabilitation for          
,multiemployer ,pensions ,act of #bjai1 
7#b7 for the payment of principal and   
interest on obligations issued under    
section #f of such ,act1 and  7#c7 for  
administrative and operating expenses of
 such ,administration4  4  7b7 ,clerical
 amendment ,the table of sections for   
subchapter ,a of chapter #ih of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new item3  ,sec4 #ieab4       
,pension ,rehabilitation ,trust ,fund4  
4  #d4 ,loan program for multiemployer  
defined benefit plans  7a7 ,loan        
authority  7#a7 ,in general ,the        
,pension ,rehabilitation ,administration
 established under section #b is        
authorized-- 7,a7 to make loans to      
multiemployer plans 7as defined in      

section #dad7;f7 of the ,internal       
,revenue ,code of #aihf7 which are      
defined benefit plans 7as defined in    
section #dad7;j7 of such ,code7 and     
which--  7i7 are in critical and        
declining status 7within the meaning of 
section #dcb7;b77#f7 of such ,code and  
section #cje7;b77#f7 of the ,employee   
,retirement and ,income ,security ,act7 
as of the date of the enactment of this 
section1 or with respect to which a     
suspension of benefits has been approved
 under section #dcb7;e77#i7 of such     
,code and section #cje7;e77#i7 of such  
,act as of such date2  7ii7 as of such  
date of enactment1 are in critical      
status 7within the meaning of section   
#dcb7;b77#b7 of such ,code and section  
#cje7;b77#b7 of such ,act71 have a      
modified funded percentage of less than 
#dj percent1 and have a ratio of active 
to inactive participants which is less  
than #b to #e2 or  7iii7 are insolvent  
for purposes of section #dah;,e of such 
,code as of such date of enactment1 if  

they became insolvent after ,december   
#af1 #bjad1 and have not been           
terminated2 and  7,b7 subject to        
subsection 7b71 to establish appropriate
 terms for such loans4  ,for purposes of
 subparagraph 7,a77ii71 the term        
modified funded percentage means the    
percentage equal to a fraction the      
numerator of which is current value of  
plan assets 7as defined in section      
#c7bf7 of such ,act7 and the denominator
 of which is current liabilities 7as    
defined in section #dca7;c77#f77;,d7 of 
such ,code and section #cjd7;c77#f77;,d7
 of such ,act74  7#b7 ,consultation ,the
 ,director of the ,pension              
,rehabilitation ,administration shall   
consult with the ,secretary of the      
,treasury1 the ,secretary of ,labor1 and
 the ,director of the ,pension ,benefit 
,guaranty ,corporation before making any
 loan under paragraph 7#a71 and shall   
share with such persons the application 
and plan information with respect to    
each such loan4  7#c7 ,establishment of 

loan program  7,a7 ,in general ,a       
program to make the loans authorized    
under this section shall be established 
not later than ,september #cj1 #bjai1   
with guidance regarding such program to 
be promulgated by the ,director of the  
,pension ,rehabilitation                
,administration1 in consultation with   
the ,director of the ,pension ,benefit  
,guaranty ,corporation1 the ,secretary  
of the ,treasury1 and the ,secretary of 
,labor1 not later than ,december #ca1   
#bjai4  7,b7 ,loans authorized before   
program date ,without regard to whether 
the program under subparagraph 7,a7 has 
been established1 a plan may apply for a
 loan under this section before either  
date described in such subparagraph1 and
 the ,pension ,rehabilitation           
,administration shall approve the       
application and make the loan before    
establishment of the program if         
necessary to avoid any suspension of the
 accrued benefits of participants4  7b7 
,loan terms  7#a7 ,in general ,the terms

 of any loan made under subsection 7a7  
shall state that-- 7,a7 the plan shall  
make payments of interest on the loan   
for a period of #bi years beginning on  
the date of the loan 7or #ai years in   
the case of a plan making the election  
under subsection 7c77#e772  7,b7 final  
payment of interest and principal shall 
be due in the #cjth year after the date 
of the loan 7except as provided in an   
election under subsection 7c77#e772 and 
7,c7 as a condition of the loan1 the    
plan sponsor stipulates that-- 7i7      
except as provided in clause 7ii71 the  
plan will not increase benefits1 allow  
any employer participating in the plan  
to reduce its contributions1 or accept  
any collective bargaining agreement     
which provides for reduced contribution 
rates1 during the #cj-year period       
described in subparagraphs 7,a7 and     
7,b72  7ii7 in the case of a plan with  
respect to which a suspension of        
benefits has been approved under section
 #dcb7;e77#i7 of the ,internal ,revenue 

,code of #aihf and section #cje7;e77#i7 
of the ,employee ,retirement ,income    
,security ,act of #aigd1 or under       
section #dah;,e of such ,code1 before   
the loan1 the plan will reinstate the   
suspended benefits 7or will not carry   
out any suspension which has been       
approved but not yet implemented72      
7iii7 the plan sponsor will comply with 
the requirements of section #fjei;,a of 
the ,internal ,revenue ,code of #aihf2  
7iv7 the plan will continue to pay all  
premiums due under section #djjg of the 
,employee ,retirement ,income ,security 
,act of #aigd2 and  7v7 the plan and    
plan administrator will meet such other 
requirements as the ,director of the    
,pension ,rehabilitation ,administration
 provides in the loan terms4  ,the terms
 of the loan shall not make reference to
 whether the plan is receiving financial
 assistance under section #dbfa7;d7 of  
the ,employee ,retirement ,income       
,security ,act of #aigd 7#bi ,u4,s4,c4  
#adca7;d77 or to any adjustment of the  

loan amount under subsection            
7d77#b77;,a77ii74  7#b7 ,interest rate  
,except as provided in the second       
sentence of this paragraph and          
subsection 7c77#e71 loans made under    
subsection 7a7 shall have as low an     
interest rate as is feasible4 ,such rate
 shall be determined by the ,pension    
,rehabilitation ,administration and     
shall--  7,a7 not be lower than the rate
 of interest on #cj-year ,treasury      
securities on the first day of the      
calendar year in which the loan is      
issued2 and  7,b7 not exceed the greater
 of-- 7i7 a rate #j4b percentage points 
higher than such rate of interest on    
such date2 or  7ii7 the rate necessary  
to collect revenues sufficient to       
administer the program under this       
section4  7c7 ,loan application  7#a7   
,in general ,in applying for a loan     
under subsection 7a71 the plan sponsor  
shall--  7,a7 demonstrate that1 except  
as provided in subparagraph 7,c7-- 7i7  
the loan will enable the plan to avoid  

insolvency for at least the #cj-year    
period described in subparagraphs 7,a7  
and 7,b7 of subsection 7b77#a7 or1 in   
the case of a plan which is already     
insolvent1 to emerge from insolvency    
within and avoid insolvency for the     
remainder of such period2 and  7ii7 the 
plan is reasonably expected to be able  
to pay benefits and the interest on the 
loan during such period and to          
accumulate sufficient funds to repay the
 principal when due2  7,b7 provide the  
plan's most recently filed ,form #eejj  
as of the date of application and any   
other information necessary to determine
 the loan amount under subsection 7d72  
7,c7 stipulate whether the plan is also 
applying for financial assistance under 
section #dbfa7;d7 of the ,employee      
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #adca7;d77 in      
combination with the loan to enable the 
plan to avoid insolvency and to pay     
benefits1 or is already receiving such  
financial assistance as a result of a   

previous application2  7,d7 state in    
what manner the loan proceeds will be   
invested pursuant to subsection 7d71 the
 person from whom any annuity contracts 
under such subsection will be purchased1
 and the person who will be the         
investment manager for any portfolio    
implemented under such subsection2 and  
7,e7 include such other information and 
certifications as the ,director of the  
,pension ,rehabilitation ,administration
 shall require4  7#b7 ,standard for     
accepting actuarial and plan sponsor    
determinations and demonstrations in the
 application ,in evaluating the plan    
sponsor's application1 the ,director of 
the ,pension ,rehabilitation            
,administration shall accept the        
determinations and demonstrations in the
 application unless the ,director1 in   
consultation with the ,director of the  
,pension ,benefit ,guaranty             
,corporation1 the ,secretary of the     
,treasury1 and the ,secretary of ,labor1
 concludes that any such determinations 

or demonstrations in the application 7or
 any underlying assumptions7 are        
unreasonable or are inconsistent with   
any rules issued by the ,director       
pursuant to subsection 7g74  7#c7       
,required actions2 deemed approval ,the 
,director of the ,pension               
,rehabilitation ,administration shall   
approve or deny any application under   
this subsection within #ij days after   
the submission of such application4 ,an 
application shall be deemed approved    
unless1 within such #ij days1 the       
,director notifies the plan sponsor of  
the denial of such application and the  
reasons for such denial4 ,any approval  
or denial of an application by the      
,director of the ,pension               
,rehabilitation ,administration shall be
 treated as a final agency action for   
purposes of section #gjd of title #e1   
,united ,states ,code4 ,the ,pension    
,rehabilitation ,administration shall   
make the loan pursuant to any           
application promptly after the approval 

of such application4  7#d7 ,certain     
plans required to apply ,the plan       
sponsor of any plan with respect to     
which a suspension of benefits has been 
approved under section #dcb7;e77#i7 of  
the ,internal ,revenue ,code of #aihf   
and section #cje7;e77#i7 of the         
,employee ,retirement ,income ,security 
,act of #aigd or under section #dah;,e  
of such ,code1 before the date of the   
enactment of this ,act shall apply for a
 loan under this section4 ,the ,director
 of the ,pension ,rehabilitation        
,administration shall provide for such  
plan sponsors to use the simplified     
application under subsection            
7d77#b77;,b74  7#e7 ,incentive for early
 repayment ,the plan sponsor may elect  
at the time of the application to repay 
the loan principal1 along with the      
remaining interest1 at least as rapidly 
as equal installments over the #aj-year 
period beginning with the #bast year    
after the date of the loan4 ,in the case
 of a plan making this election1 the    

interest on the loan shall be reduced by
 #j4e percentage points4  7d7 ,loan     
amount and use  7#a7 ,amount of loan    
7,a7 ,in general ,except as provided in 
subparagraph 7,b7 and paragraph 7#b71   
the amount of any loan under subsection 
7a7 shall be1 as demonstrated by the    
plan sponsor on the application under   
subsection 7c71 the amount needed to    
purchase annuity contracts or to        
implement a portfolio described in      
paragraph 7#c77;,c7 7or a combination of
 the two7 sufficient to provide benefits
 of participants and beneficiaries of   
the plan in pay status1 and terminated  
vested benefits1 at the time the loan is
 made4  7,b7 ,plans with suspended      
benefits ,in the case of a plan with    
respect to which a suspension of        
benefits has been approved under section
 #dcb7;e77#i7 of the ,internal ,revenue 
,code of #aihf and section #cje7;e77#i7 
of the ,employee ,retirement ,income    
,security ,act of #aigd 7#bi ,u4,s4,c4  
#ajhe7;e77#i77 or under section #dah;,e 

of such ,code--  7i7 the suspension of  
benefits shall not be taken into account
 in applying subparagraph 7,a72 and     
7ii7 the loan amount shall be the amount
 sufficient to provide benefits of      
participants and beneficiaries of the   
plan in pay status and terminated vested
 benefits at the time the loan is made1 
determined without regard to the        
suspension1 including retroactive       
payment of benefits which would         
otherwise have been payable during the  
period of the suspension4  7#b7         
,coordination with ,,pbgc financial     
assistance  7,a7 ,in general ,in the    
case of a plan which is also applying   
for financial assistance under section  
#dbfa7;d7 of the ,employee ,retirement  
,income ,security ,act of #aigd 7#bi    
,u4,s4,c4 #adca7;d77--  7i7 the plan    
sponsor shall submit the loan           
application and the application for     
financial assistance jointly to the     
,pension ,rehabilitation ,administration
 and the ,pension ,benefit ,guaranty    

,corporation with the information       
necessary to determine the eligibility  
for and amount of the loan under this   
section and the financial assistance    
under section #dbfa7;d7 of such ,act2   
and  7ii7 if such financial assistance  
is granted1 the amount of the loan under
 subsection 7a7 shall not exceed an     
amount equal to the excess of--  7,i7   
the amount determined under paragraph   
7#a77;,a7 or 7#a77;,b77ii7 7whichever is
 applicable72 over  7,,ii7 the amount of
 such financial assistance4  7,b7 ,plans
 already receiving ,,pbgc assistance    
,the ,director of the ,pension          
,rehabilitation ,administration shall   
provide for a simplified application for
 the loan under this section which may  
be used by an insolvent plan which has  
not been terminated and which is already
 receiving financial assistance 7other  
than under section #dbfa7;d7 of such    
,act7 from the ,pension ,benefit        
,guaranty ,corporation at the time of   
the application for the loan under this 

section4  7#c7 ,use of loan funds  7,a7 
,in general ,notwithstanding section    
#dcb7;f77#b77;,a77ii7 of the ,internal  
,revenue ,code of #aihf and section     
#cje7;f77#b77;,a77ii7 of such ,act1 the 
loan received under subsection 7a7 shall
 only be used to purchase annuity       
contracts which meet the requirements of
 subparagraph 7,b7 or to implement a    
portfolio described in subparagraph 7,c7
 7or a combination of the two7 to       
provide the benefits described in       
paragraph 7#a74  7,b7 ,annuity contract 
requirements ,the annuity contracts     
purchased under subparagraph 7,a7 shall 
be issued by an insurance company which 
is licensed to do business under the    
laws of any ,state and which is rated ,a
 or better by a nationally recognized   
statistical rating organization1 and the
 purchase of such contracts shall meet  
all applicable fiduciary standards under
 the ,employee ,retirement ,income      
,security ,act of #aigd4  7,c7          
,portfolio  7i7 ,in general ,a portfolio

 described in this subparagraph is--    
7,i7 a cash matching portfolio or       
duration matching portfolio consisting  
of investment grade 7as rated by a      
nationally recognized statistical rating
 organization7 fixed income investments1
 including ,united ,states              
dollar-denominated public or private    
debt obligations issued or guaranteed by
 the ,united ,states or a foreign       
issuer1 which are tradeable in ,united  
,states currency and are issued at fixed
 or zero coupon rates2 or  7,,ii7 any   
other portfolio prescribed by the       
,secretary of the ,treasury in          
regulations which has a similar risk    
profile to the portfolios described in  
subclause 7,i7 and is equally protective
 of the interests of participants and   
beneficiaries4  ,once implemented1 such 
a portfolio shall be maintained until   
all liabilities to participants and     
beneficiaries in pay status1 and        
terminated vested participants1 at the  
time of the loan are satisfied4  7ii7   

,fiduciary duty ,any investment manager 
of a portfolio under this subparagraph  
shall acknowledge in writing that such  
person is a fiduciary under the         
,employee ,retirement ,income ,security 
,act of #aigd with respect to the plan4 
7iii7 ,treatment of participants and    
beneficiaries ,participants and         
beneficiaries covered by a portfolio    
under this subparagraph shall continue  
to be treated as participants and       
beneficiaries of the plan1 including for
 purposes of title ,,iv of the ,employee
 ,retirement ,income ,security ,act of  
#aigd4  7,d7 ,accounting  7i7 ,in       
general ,annuity contracts purchased and
 portfolios implemented under this      
paragraph shall be used solely to       
provide the benefits described in       
paragraph 7#a7 until all such benefits  
have been paid and shall be accounted   
for separately from the other assets of 
the plan4  7ii7 ,oversight of           
non-annuity investments  7,i7 ,in       
general ,any portfolio implemented under

 this paragraph shall be subject to     
oversight by the ,pension               
,rehabilitation ,administration1        
including a mandatory triennial review  
of the adequacy of the portfolio to     
provide the benefits described in       
paragraph 7#a7 and approval 7to be      
provided within a reasonable period of  
time7 of any decision by the plan       
sponsor to change the investment manager
 of the portfolio4  7,,ii7 ,remedial    
action ,if the oversight under subclause
 7,i7 determines an inadequacy1 the plan
 sponsor shall take remedial action to  
ensure that the inadequacy will be cured
 within #b years of such determination4 
7,e7 ,ombudsperson ,the ,participant and
 ,plan ,sponsor ,advocate established   
under section #djjd of the ,employee    
,retirement ,income ,security ,act of   
#aigd shall act as ombudsperson for     
participants and beneficiaries on behalf
 of whom annuity contracts are purchased
 or who are covered by a portfolio under
 this paragraph4  7e7 ,collection of    

repayment ,except as provided in        
subsection 7f71 the ,pension            
,rehabilitation ,administration shall   
make every effort to collect repayment  
of loans under this section in          
accordance with section #cgaa of title  
#ca1 ,united ,states ,code4  7f7 ,loan  
default ,if a plan is unable to make any
 payment on a loan under this section   
when due1 the ,pension ,rehabilitation  
,administration shall negotiate with the
 plan sponsor revised terms for         
repayment 7including installment        
payments over a reasonable period or    
forgiveness of a portion of the loan    
principal71 but only to the extent      
necessary to avoid insolvency in the    
subsequent #ah months4  7g7 ,authority  
,to issue rules1 ,etc ,the ,director of 
the ,pension ,rehabilitation            
,administration1 in consultation with   
the ,director of the ,pension ,benefit  
,guaranty ,corporation1 the ,secretary  
of the ,treasury1 and the ,secretary of 
,labor1 is authorized to issue rules    

regarding the form1 content1 and process
 of applications for loans under this   
section1 actuarial standards and        
assumptions to be used in making        
estimates and projections for purposes  
of such applications1 and assumptions   
regarding interest rates1 mortality1 and
 distributions with respect to a        
portfolio described in subsection       
7d77#c77;,c74  7h7 ,report to ,congress 
on status of certain plans with loans   
,not later than #a year after the date  
of the enactment of this ,act1 and      
annually thereafter1 the ,director of   
the ,pension ,rehabilitation            
,administration shall submit to the     
,committee on ,ways and ,means and the  
,committee on ,education and ,labor of  
the ,house of ,representatives1 and the 
,committee on ,finance and the          
,committee on ,health1 ,education1      
,labor and ,pensions of the ,senate1 a  
report identifying any plan that--  7#a7
 has failed to make any scheduled       
payment on a loan under this section2   

7#b7 has negotiated revised terms for   
repayment of such loan 7including any   
installment payments or forgiveness of a
 portion of the loan principal72 or     
7#c7 the ,director has determined is no 
longer reasonably expected to be able   
to-- 7,a7 pay benefits and the interest 
on the loan2 or  7,b7 accumulate        
sufficient funds to repay the principal 
when due4  ,such report shall include   
the details of any such failure1 revised
 terms1 or determination1 as the case   
may be4  7i7 ,coordination with taxation
 of unrelated business income           
,subparagraph 7,a7 of section           
#ead7;c77#f7 of the ,internal ,revenue  
,code of #aihf is amended--  7#a7 by    
striking or at the end of clause 7i72   
7#b7 by striking the period at the end  
of clause 7ii77,,ii7 and inserting 1 or2
 and  7#c7 by adding at the end the     
following new clause3  7iii7            
indebtedness with respect to a          
multiemployer plan under a loan made by 
the ,pension ,rehabilitation            

,administration pursuant to section #d  
of the ,rehabilitation for              
,multiemployer ,pensions ,act of #bjai4 
4  #e4 ,coordination with withdrawal    
liability and funding rules  7a7        
,amendment to ,internal ,revenue ,code  
of #aihf ,section #dcb of the ,internal 
,revenue ,code of #aihf is amended by   
adding at the end the following new     
subsection3  7k7 ,special rules for     
plans receiving pension rehabilitation  
loans  7#a7 ,determination of withdrawal
 liability  7,a7 ,in general ,if any    
employer participating in a plan at the 
time the plan receives a loan under     
section #d7;a7 of the ,rehabilitation   
for ,multiemployer ,pensions ,act of    
#bjai withdraws from the plan before the
 end of the #cj-year period beginning on
 the date of the loan1 the withdrawal   
liability of such employer shall be     
determined under the ,employee          
,retirement ,income ,security ,act of   
#aigd--  7i7 by applying section        
#dbai7;c77#a77;,d7 of the ,employee     

,retirement ,income ,security ,act of   
#aigd as if the plan were terminating by
 the withdrawal of every employer from  
the plan1 and  7ii7 by determining the  
value of nonforfeitable benefits under  
the plan at the time of the deemed      
termination by using the interest       
assumptions prescribed for purposes of  
section #djdd of the ,employee          
,retirement ,income ,security ,act of   
#aigd1 as prescribed in the regulations 
under section #dbha of the ,employee    
,retirement ,income ,security ,act of   
#aigd in the case of such a mass        
withdrawal4  7,b7 ,annuity contracts and
 investment portfolios purchased with   
loan funds ,annuity contracts purchased 
and portfolios implemented under section
 #d7;d77#c7 of the ,rehabilitation for  
,multiemployer ,pensions ,act of #bjai  
shall not be taken into account as plan 
assets in determining the withdrawal    
liability of any employer under         
subparagraph 7,a71 but the amount equal 
to the greater of--  7i7 the benefits   

provided under such contracts or        
portfolios to participants and          
beneficiaries1 or  7ii7 the remaining   
payments due on the loan under section  
#d7;a7 of such ,act1  shall be taken    
into account as unfunded vested benefits
 in determining such withdrawal         
liability4  7#b7 ,coordination with     
funding requirements ,in the case of a  
plan which receives a loan under section
 #d7;a7 of the ,rehabilitation for      
,multiemployer ,pensions ,act of #bjai--
 7,a7 annuity contracts purchased and   
portfolios implemented under section    
#d7;d77#c7 of such ,act1 and the        
benefits provided to participants and   
beneficiaries under such contracts or   
portfolios1 shall not be taken into     
account in determining minimum required 
contributions under section #dab1  7,b7 
payments on the interest and principal  
under the loan1 and any benefits owed in
 excess of those provided under such    
contracts or portfolios1 shall be taken 
into account as liabilities for purposes

 of such section1 and  7,c7 if such a   
portfolio is projected due to           
unfavorable investment or actuarial     
experience to be unable to fully satisfy
 the liabilities which it covers1 the   
amount of the liabilities projected to  
be unsatisfied shall be taken into      
account as liabilities for purposes of  
such section4  4  7b7 ,amendment to     
,employee ,retirement ,income ,security 
,act of #aigd ,section #cje of the      
,employee ,retirement ,income ,security 
,act of #aigd 7#bi ,u4,s4,c4 #ajhe7 is  
amended by adding at the end the        
following new subsection3  7k7 ,special 
rules for plans receiving pension       
rehabilitation loans  7#a7              
,determination of withdrawal liability  
7,a7 ,in general ,if any employer       
participating in a plan at the time the 
plan receives a loan under section      
#d7;a7 of the ,rehabilitation for       
,multiemployer ,pensions ,act of #bjai  
withdraws from the plan before the end  
of the #cj-year period beginning on the 

date of the loan1 the withdrawal        
liability of such employer shall be     
determined--  7i7 by applying section   
#dbai7;c77#a77;,d7 as if the plan were  
terminating by the withdrawal of every  
employer from the plan1 and  7ii7 by    
determining the value of nonforfeitable 
benefits under the plan at the time of  
the deemed termination by using the     
interest assumptions prescribed for     
purposes of section #djdd1 as prescribed
 in the regulations under section #dbha 
in the case of such a mass withdrawal4  
7,b7 ,annuity contracts and investment  
portfolios purchased with loan funds    
,annuity contracts purchased and        
portfolios implemented under section    
#d7;d77#c7 of the ,rehabilitation for   
,multiemployer ,pensions ,act of #bjai  
shall not be taken into account in      
determining the withdrawal liability of 
any employer under subparagraph 7,a71   
but the amount equal to the greater of--
  7i7 the benefits provided under such  
contracts or portfolios to participants 

and beneficiaries1 or  7ii7 the         
remaining payments due on the loan under
 section #d7;a7 of such ,act1  shall be 
taken into account as unfunded vested   
benefits in determining such withdrawal 
liability4  7#b7 ,coordination with     
funding requirements ,in the case of a  
plan which receives a loan under section
 #d7;a7 of the ,rehabilitation for      
,multiemployer ,pensions ,act of #bjai--
 7,a7 annuity contracts purchased and   
portfolios implemented under section    
#d7;d77#c7 of such ,act1 and the        
benefits provided to participants and   
beneficiaries under such contracts or   
portfolios1 shall not be taken into     
account in determining minimum required 
contributions under section #cjb1  7,b7 
payments on the interest and principal  
under the loan1 and any benefits owed in
 excess of those provided under such    
contracts or portfolios1 shall be taken 
into account as liabilities for purposes
 of such section1 and  7,c7 if such a   
portfolio is projected due to           

unfavorable investment or actuarial     
experience to be unable to fully satisfy
 the liabilities which it covers1 the   
amount of the liabilities projected to  
be unsatisfied shall be taken into      
account as liabilities for purposes of  
such section4  4  #f4 ,issuance of      
,treasury bonds ,the ,secretary of the  
,treasury shall from time to time       
transfer from the general fund of the   
,treasury to the ,pension               
,rehabilitation ,trust ,fund established
 under section #ieab of the ,internal   
,revenue ,code of #aihf such amounts as 
are necessary to fund the loan program  
under section #d of this ,act1 including
 from proceeds from the ,secretary's    
issuance of obligations under chapter   
#ca of title #ca1 ,united ,states ,code4
  #g4 ,reports of plans receiving       
pension rehabilitation loans  7a7 ,in   
general ,subpart ,e of part ,,iii of    
subchapter ,a of chapter #fa of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        

following new section3  #fjei;,a4       
,reports of plans receiving pension     
rehabilitation loans  7a7 ,in general   
,in the case of a plan receiving a loan 
under section #d7;a7 of the             
,rehabilitation for ,multiemployer      
,pensions ,act of #bjai1 with respect to
 the first plan year beginning after the
 date of the loan and each of the #bi   
succeeding plan years1 not later than   
the #ijth day of each such plan year the
 plan sponsor shall file with the       
,secretary a report 7including          
appropriate documentation and actuarial 
certifications from the plan actuary1 as
 required by the ,secretary7 that       
contains--  7#a7 the funded percentage  
7as defined in section #dcb7;j77#b77 as 
of the first day of such plan year1 and 
the underlying actuarial value of assets
 7determined with regard1 and without   
regard1 to annuity contracts purchased  
and portfolios implemented with proceeds
 of such loan7 and liabilities          
7including any amounts due with respect 

to such loan7 taken into account in     
determining such percentage1  7#b7 the  
market value of the assets of the plan  
7determined as provided in paragraph    
7#a77 as of the last day of the plan    
year preceding such plan year1  7#c7 the
 total value of all contributions made  
by employers and employees during the   
plan year preceding such plan year1     
7#d7 the total value of all benefits    
paid during the plan year preceding such
 plan year1  7#e7 cash flow projections 
for such plan year and the #i succeeding
 plan years1 and the assumptions used in
 making such projections1  7#f7 funding 
standard account projections for such   
plan year and the #i succeeding plan    
years1 and the assumptions relied upon  
in making such projections1  7#g7 the   
total value of all investment gains or  
losses during the plan year preceding   
such plan year1  7#h7 any significant   
reduction in the number of active       
participants during the plan year       
preceding such plan year1 and the reason

 for such reduction1  7#i7 a list of    
employers that withdrew from the plan in
 the plan year preceding such plan year1
 and the resulting reduction in         
contributions1  7#aj7 a list of         
employers that paid withdrawal liability
 to the plan during the plan year       
preceding such plan year and1 for each  
employer1 a total assessment of the     
withdrawal liability paid1 the annual   
payment amount1 and the number of years 
remaining in the payment schedule with  
respect to such withdrawal liability1   
7#aa7 any material changes to benefits1 
accrual rates1 or contribution rates    
during the plan year preceding such plan
 year1 and whether such changes relate  
to the terms of the loan1  7#ab7 details
 regarding any funding improvement plan 
or rehabilitation plan and updates to   
such plan1  7#ac7 the number of         
participants during the plan year       
preceding such plan year who are active 
participants1 the number of participants
 and beneficiaries in pay status1 and   

the number of terminated vested         
participants and beneficiaries1  7#ad7  
the amount of any financial assistance  
received under section #dbfa of the     
,employee ,retirement ,income ,security 
,act of #aigd to pay benefits during the
 preceding plan year1 and the total     
amount of such financial assistance     
received for all preceding years1  7#ae7
 the information contained on the most  
recent annual funding notice submitted  
by the plan under section #aja7;f7 of   
the ,employee ,retirement ,income       
,security ,act of #aigd1  7#af7 the     
information contained on the most recent
 annual return under section #fjeh and  
actuarial report under section #fjei of 
the plan1 and  7#ag7 copies of the plan 
document and amendments1 other          
retirement benefit or ancillary benefit 
plans relating to the plan and          
contribution obligations under such     
plans1 a breakdown of administrative    
expenses of the plan1 participant census
 data and distribution of benefits1 the 

most recent actuarial valuation report  
as of the plan year1 copies of          
collective bargaining agreements1 and   
financial reports1 and such other       
information as the ,secretary1 in       
consultation with the ,director of the  
,pension ,rehabilitation                
,administration1 may require4  7b7      
,electronic submission ,the report      
required under subsection 7a7 shall be  
submitted electronically4  7c7          
,information sharing ,the ,secretary    
shall share the information in the      
report under subsection 7a7 with the    
,secretary of ,labor and the ,director  
of the ,pension ,benefit ,guaranty      
,corporation4  7d7 ,report to           
participants1 beneficiaries1 and        
employers ,each plan sponsor required to
 file a report under subsection 7a7     
shall1 before the expiration of the time
 prescribed for the filing of such      
report1 also provide a summary 7written 
in a manner so as to be understood by   
the average plan participant7 of the    

information in such report to           
participants and beneficiaries in the   
plan and to each employer with an       
obligation to contribute to the plan4  4
  7b7 ,penalty ,subsection 7e7 of       
section #ffeb of the ,internal ,revenue 
,code of #aihf is amended-- 7#a7 by     
inserting 1 #fjei;,a 7relating to       
reports of plans receiving pension      
rehabilitation loans7 after deferred    
compensation72  7#b7 by inserting 7#ajj 
in the case of failures under section   
#fjei;,a7 after #be2 and  7#c7 by adding
 at the end the following3 ,in the case 
of a failure with respect to section    
#fjei;,a1 the amount imposed under this 
subsection shall not be paid from the   
assets of the plan44  7c7 ,clerical     
amendment ,the table of sections for    
subpart ,e of part ,,iii of subchapter  
,a of chapter #fa of the ,internal      
,revenue ,code of #aihf is amended by   
adding at the end the following new     
item3  ,sec4 #fjei;,a4 ,reports of plans
 receiving pension rehabilitation loans4

  4  #h4 ,,pbgc financial assistance    
7a7 ,in general ,section #dbfa of the   
,employee ,retirement ,income ,security 
,act of #aigd 7#bi ,u4,s4,c4 #adca7 is  
amended by adding at the end the        
following new subsection3  7d7  7#a7    
,the plan sponsor of a multiemployer    
plan-- 7,a7 which is in critical and    
declining status 7within the meaning of 
section #cje7;b77#f77 as of the date of 
the enactment of this subsection1 or    
with respect to which a suspension of   
benefits has been approved under section
 #cje7;e77#i7 as of such date2  7,b7    
which1 as of such date of enactment1 is 
in critical status 7within the meaning  
of section #cje7;b77#b771 has a modified
 funded percentage of less than #dj     
percent 7as defined in section          
#d7;a77#a7 of the ,rehabilitation for   
,multiemployer ,pensions ,act of #bjai71
 and has a ratio of active to inactive  
participants which is less than #b to   
#e2 or  7,c7 which is insolvent for     
purposes of section #dah;,e of the      

,internal ,revenue ,code of #aihf as of 
such date of enactment1 if the plan     
became insolvent after ,december #af1   
#bjad1 and has not been terminated2  and
 which is applying for a loan under     
section #d7;a7 of the ,rehabilitation   
for ,multiemployer ,pensions ,act of    
#bjai may also apply to the corporation 
for financial assistance under this     
subsection1 by jointly submitting such  
applications in accordance with section 
#d7;d77#b7 of such ,act4 ,the           
application for financial assistance    
under this subsection shall demonstrate1
 based on projections by the plan       
actuary1 that after the receipt of the  
anticipated loan amount under section   
#d7;a7 of such ,act1 the plan will still
 become 7or remain7 insolvent within the
 #cj-year period beginning on the date  
of the loan4  7#b7 ,in reviewing an     
application under paragraph 7#a71 the   
corporation shall review the            
determinations and demonstrations       
submitted with the loan application     

under section #d7;c7 of the             
,rehabilitation for ,multiemployer      
,pensions ,act of #bjai and provide     
guidance regarding such determinations  
and demonstrations prior to approving   
any application for financial assistance
 under this subsection4 ,the corporation
 may deny any application if any such   
determinations or demonstrations 7or any
 underlying assumptions7 are            
unreasonable1 or inconsistent with rules
 issued by the corporation1 and the plan
 and the corporation are unable to reach
 agreement on such determinations or    
demonstrations4 ,the corporation shall  
prescribe any such rules or guidance not
 later than ,december #ca1 #bjai4  7#c7 
7,a7 ,in the case of a plan described in
 paragraph 7#a77;,a7 or 7#a77;,b71 the  
total financial assistance provided     
under this subsection shall be an amount
 equal to the smallest portion of the   
loan amount with respect to the plan    
under paragraph 7#a77;,a7 or            
7#a77;,b77ii7 of section #d7;d7 of the  

,rehabilitation for ,multiemployer      
,pensions ,act of #bjai 7determined     
without regard to paragraph 7#b7        
thereof7 that1 if provided as financial 
assistance under this subsection instead
 of a loan1 would allow the plan to     
avoid the projected insolvency4  7,b7   
,such amount shall not exceed the       
present value of the maximum guaranteed 
benefit with respect to all participants
 and beneficiaries of the plan under    
sections #djbb;,a and #djbb;,b4 ,for    
purposes of the preceding sentence1 the 
present value of the maximum guaranteed 
benefit amount shall be determined by   
disregarding any loan available from the
 ,pension ,rehabilitation               
,administration and shall be determined 
as if the plan were insolvent on the    
date of the application1 and the present
 value of the maximum guaranteed benefit
 amount with respect to such            
participants and beneficiaries may be   
calculated in the aggregate1 rather than
 by reference to the benefit of each    

such participant or beneficiary4  7#d7  
,in the case of a plan described in     
paragraph 7#a77;,c71 the financial      
assistance provided pursuant to such    
application under this subsection shall 
be the present value of the amount      
7determined by the plan actuary and     
submitted on the application7 that1 if  
such amount were paid by the corporation
 in combination with the loan and any   
other assistance being provided to the  
plan by the corporation at the time of  
the application1 would enable the plan  
to emerge from insolvency and avoid any 
other insolvency projected under        
paragraph 7#a74  7#e7  7,a7  7i7 ,except
 as provided in subparagraph 7,b71 if   
the corporation determines at the time  
of approval1 or at the beginning of any 
plan year beginning thereafter1 that the
 plan's #e-year expenditure projection  
7determined without regard to loan      
payments described in clause            
7iii77,,iii77 exceeds the fair market   
value of the plan's assets1 the         

corporation shall 7subject to the total 
amount of financial assistance approved 
under this subsection7 provide such     
assistance in an amount equal to the    
lesser of--  7,i7 the amount by which   
the plan's #e-year expenditure          
projection exceeds such fair market     
value2 or  7,,ii7 the plan's expected   
expenditures for the plan year4  7ii7   
,for purposes of this subparagraph1 the 
term #e-year expenditure projection     
means1 with respect to any plan for a   
plan year1 an amount equal to #ejj      
percent of the plan's expected          
expenditures for the plan year4  7iii7  
,for purposes of this subparagraph1 the 
term expected expenditures means1 with  
respect to any plan for a plan year1 an 
amount equal to the sum of-- 7,i7       
expected benefit payments for the plan  
year2  7,,ii7 expected administrative   
expense payments for the plan year2 plus
  7,,iii7 payments on the loan scheduled
 during the plan year pursuant to the   
terms of the loan under section #d7;b7  

of the ,rehabilitation for              
,multiemployer ,pensions ,act of #bjai4 
7iv7 ,for purposes of this subparagraph1
 in the case of any plan year during    
which a plan is approved for a loan     
under section #d of such ,act1 but has  
not yet received the proceeds1 such     
proceeds shall be included in           
determining the fair market value of the
 plan's assets for the plan year4 ,the  
preceding sentence shall not apply in   
the case of any plan that for the plan  
year beginning in #bjae was certified   
pursuant to section #cje7;b77#c7 as     
being in critical and declining status1 
and had more than #cjj1jjj participants4
  7,b7 ,the financial assistance under  
this subsection shall be provided in a  
lump sum if the plan sponsor            
demonstrates in the application1 and the
 corporation determines1 that such a    
lump sum payment is necessary for the   
plan to avoid the insolvency to which   
the application relates4 ,in the case of
 a plan described in paragraph          

7#a77;,c71 such lump sum shall be       
provided not later than ,december #ca1  
#bjbj4  7#f7 ,subsections 7b7 and 7c7   
shall apply to financial assistance     
under this subsection as if it were     
provided under subsection 7a71 except   
that the terms for repayment under      
subsection 7b77#b7 shall not require the
 financial assistance to be repaid      
before the date on which the loan under 
section #d7;a7 of the ,rehabilitation   
for ,multiemployer ,pensions ,act of    
#bjai is repaid in full4  7#g7 ,the     
corporation may forgo repayment of the  
financial assistance provided under this
 subsection if necessary to avoid any   
suspension of the accrued benefits of   
participants4  4  7b7 ,appropriations   
,there is appropriated to the ,director 
of the ,pension ,benefit ,guaranty      
,corporation such sums as may be        
necessary for each fiscal year to       
provide the financial assistance        
described in section #dbfa7;d7 of the   
,employee ,retirement ,income ,security 

,act of #aigd 7#bi ,u4,s4,c4 #adca7;d77 
7as added by this section7 7including   
necessary administrative and operating  
expenses relating to such assistance74  
#i4 ,modification of required           
distribution rules for designated       
beneficiaries  7a7 ,modification of     
rules where employee dies before entire 
distribution  7#a7 ,in general ,section 
#dja7;a77#i7 of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new subparagraph3 
7,h7 ,special rules for certain defined 
contribution plans ,in the case of a    
defined contribution plan1 if an        
employee dies before the distribution of
 the employee's entire interest--  7i7  
,in general ,except in the case of a    
beneficiary who is not a designated     
beneficiary1 subparagraph 7,b77ii7--    
7,i7 shall be applied by substituting   
#aj years for #e years1 and  7,,ii7     
shall apply whether or not distributions
 of the employee's interests have begun 
in accordance with subparagraph 7,a74   

7ii7 ,exception only for eligible       
designated beneficiaries ,subparagraph  
7,b77iii7 shall apply only in the case  
of an eligible designated beneficiary4  
7iii7 ,rules upon death of eligible     
designated beneficiary ,if an eligible  
designated beneficiary dies before the  
portion of the employee's interest to   
which this subparagraph applies is      
entirely distributed1 the exception     
under clause 7iii7 shall not apply to   
any beneficiary of such eligible        
designated beneficiary and the remainder
 of such portion shall be distributed   
within #aj years after the death of such
 eligible designated beneficiary4  7iv7 
,application to certain eligible        
retirement plans ,for purposes of       
applying the provisions of this         
subparagraph in determining amounts     
required to be distributed pursuant to  
this paragraph1 all eligible retirement 
plans 7as defined in section            
#djb7;c77#h77;,b71 other than a defined 
benefit plan described in clause 7iv7 or

 7v7 thereof or a qualified trust which 
is a part of a defined benefit plan7    
shall be treated as a defined           
contribution plan4  4  7#b7 ,definition 
of eligible designated beneficiary      
,section #dja7;a77#i77;,e7 of such ,code
 is amended to read as follows3  7,e7   
,definitions and rules relating to      
designated beneficiary ,for purposes of 
this paragraph--  7i7 ,designated       
beneficiary ,the term designated        
beneficiary means any individual        
designated as a beneficiary by the      
employee4  7ii7 ,eligible designated    
beneficiary ,the term eligible          
designated beneficiary means1 with      
respect to any employee1 any designated 
beneficiary who is--  7,i7 the surviving
 spouse of the employee1  7,,ii7 subject
 to clause 7iii71 a child of the        
employee who has not reached majority   
7within the meaning of subparagraph     
7,f771  7,,iii7 disabled 7within the    
meaning of section #gb7m77#g771  7,,iv7 
a chronically ill individual 7within the

 meaning of section #ggjb;,b7c77#b71    
except that the requirements of         
subparagraph 7,a77i7 thereof shall only 
be treated as met if there is a         
certification that1 as of such date1 the
 period of inability described in such  
subparagraph with respect to the        
individual is an indefinite one which is
 reasonably expected to be lengthy in   
nature71 or  7,v7 an individual not     
described in any of the preceding       
subclauses who is not more than #aj     
years younger than the employee4  7iii7 
,special rule for children ,subject to  
subparagraph 7,f71 an individual        
described in clause 7ii77,,ii7 shall    
cease to be an eligible designated      
beneficiary as of the date the          
individual reaches majority and any     
remainder of the portion of the         
individual's interest to which          
subparagraph 7,h77ii7 applies shall be  
distributed within #aj years after such 
date4  7iv7 ,time for determination of  
eligible designated beneficiary ,the    

determination of whether a designated   
beneficiary is an eligible designated   
beneficiary shall be made as of the date
 of death of the employee4  4  7#c7     
,effective dates  7,a7 ,in general      
,except as provided in this paragraph   
and paragraphs 7#d7 and 7#e71 the       
amendments made by this subsection shall
 apply to distributions with respect to 
employees who die after ,december #ca1  
#bjai4  7,b7 ,collective bargaining     
exception ,in the case of a plan        
maintained pursuant to one or more      
collective bargaining agreements between
 employee representatives and one or    
more employers ratified before the date 
of enactment of this ,act1 the          
amendments made by this subsection shall
 apply to distributions with respect to 
employees who die in calendar years     
beginning after the earlier of--  7i7   
the later of-- 7,i7 the date on which   
the last of such collective bargaining  
agreements terminates 7determined       
without regard to any extension thereof 

agreed to on or after the date of the   
enactment of this ,act72 or  7,,ii7     
,december #ca1 #bjai2 or  7ii7 ,december
 #ca1 #bjba4  ,for purposes of clause   
7i77,i71 any plan amendment made        
pursuant to a collective bargaining     
agreement relating to the plan which    
amends the plan solely to conform to any
 requirement added by this section shall
 not be treated as a termination of such
 collective bargaining agreement4  7,c7 
,governmental plans ,in the case of a   
governmental plan 7as defined in section
 #dad7;d7 of the ,internal ,revenue     
,code of #aihf71 subparagraph 7,a7 shall
 be applied by substituting ,december   
#ca1 #bjba for ,december #ca1 #bjai4    
7#d7 ,exception for certain existing    
annuity contracts  7,a7 ,in general ,the
 amendments made by this subsection     
shall not apply to a qualified annuity  
which is a binding annuity contract in  
effect on the date of enactment of this 
,act and at all times thereafter4  7,b7 
,qualified annuity ,for purposes of this

 paragraph1 the term qualified annuity  
means1 with respect to an employee1 an  
annuity-- 7i7 which is a commercial     
annuity 7as defined in section          
#cdje7;e77#f7 of the ,internal ,revenue 
,code of #aihf72  7ii7 under which the  
annuity payments are made over the life 
of the employee or over the joint lives 
of such employee and a designated       
beneficiary 7or over a period not       
extending beyond the life expectancy of 
such employee or the joint life         
expectancy of such employee and a       
designated beneficiary7 in accordance   
with the regulations described in       
section #dja7;a77#i77;,a77ii7 of such   
,code 7as in effect before such         
amendments7 and which meets the other   
requirements of section #dja7;a77#i7 of 
such ,code 7as so in effect7 with       
respect to such payments2 and  7iii7    
with respect to which-- 7,i7 annuity    
payments to the employee have begun     
before the date of enactment of this    
,act1 and the employee has made an      

irrevocable election before such date as
 to the method and amount of the annuity
 payments to the employee or any        
designated beneficiaries2 or  7,,ii7 if 
subclause 7,i7 does not apply1 the      
employee has made an irrevocable        
election before the date of enactment of
 this ,act as to the method and amount  
of the annuity payments to the employee 
or any designated beneficiaries4  7#e7  
,exception for certain beneficiaries    
7,a7 ,in general ,if an employee dies   
before the effective date1 then1 in     
applying the amendments made by this    
subsection to such employee's designated
 beneficiary who dies after such date-- 
7i7 such amendments shall apply to any  
beneficiary of such designated          
beneficiary2 and  7ii7 the designated   
beneficiary shall be treated as an      
eligible designated beneficiary for     
purposes of applying section            
#dja7;a77#i77;,h77ii7 of the ,internal  
,revenue ,code of #aihf 7as in effect   
after such amendments74  7,b7 ,effective

 date ,for purposes of this paragraph1  
the term effective date means the first 
day of the first calendar year to which 
the amendments made by this subsection  
apply to a plan with respect to         
employees dying on or after such date4  
7b7 ,provisions relating to plan        
amendments  7#a7 ,in general ,if this   
subsection applies to any plan          
amendment-- 7,a7 such plan shall be     
treated as being operated in accordance 
with the terms of the plan during the   
period described in paragraph           
7#b77;,b77i72 and  7,b7 except as       
provided by the ,secretary of the       
,treasury1 such plan shall not fail to  
meet the requirements of section        
#daa7;d77#f7 of the ,internal ,revenue  
,code of #aihf and section #bjd7;g7 of  
the ,employee ,retirement ,income       
,security ,act of #aigd by reason of    
such amendment4  7#b7 ,amendments to    
which subsection applies  7,a7 ,in      
general ,this subsection shall apply to 
any amendment to any plan or which is   

made-- 7i7 pursuant to any amendment    
made by this section or pursuant to any 
regulation issued by the ,secretary of  
the ,treasury under this section or such
 amendments2 and  7ii7 on or before the 
last day of the first plan year         
beginning after ,december #ca1 #bjba1 or
 such later date as the ,secretary of   
the ,treasury may prescribe4  ,in the   
case of a governmental or collectively  
bargained plan to which subparagraph    
7,b7 or 7,c7 of subsection 7a77#d7      
applies1 clause 7ii7 shall be applied by
 substituting the date which is #b years
 after the date otherwise applied under 
such clause4  7,b7 ,conditions ,this    
subsection shall not apply to any       
amendment unless-- 7i7 during the       
period--  7,i7 beginning on the date the
 legislative or regulatory amendment    
described in paragraph 7#a77;,a7 takes  
effect 7or in the case of a plan        
amendment not required by such          
legislative or regulatory amendment1 the
 effective date specified by the plan72 

and  7,,ii7 ending on the date described
 in subparagraph 7,a77ii7 7or1 if       
earlier1 the date the plan amendment is 
adopted71  the plan is operated as if   
such plan amendment were in effect2 and 
7ii7 such plan amendment applies        
retroactively for such period4  #aj4    
,increase in penalty for failure to file
  7a7 ,in general ,the second sentence  
of section #ffea7;a7 of the ,internal   
,revenue ,code of #aihf1 as amended by  
the ,taxpayer ,first ,act1 is amended by
 striking #ccj and inserting #dce4  7b7 
,inflation adjustment ,section          
#ffea7;j77#a7 of such ,code1 as amended 
by such ,act1 is amended by striking    
#ccj and inserting #dce4  7c7 ,effective
 date ,the amendments made by this      
section shall apply to returns the due  
date for which 7including extensions7 is
 after ,december #ca1 #bjai4  #aa4      
,increased penalties for failure to file
 retirement plan returns  7a7 ,in       
general ,subsection 7e7 of section #ffeb
 of the ,internal ,revenue ,code of     

#aihf is amended-- 7#a7 by striking #be 
and inserting #bej2 and  7#b7 by        
striking #ae1jjj and inserting #aej1jjj4
  7b7 ,annual registration statement and
 notification of changes ,subsection 7d7
 of section #ffeb of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 by striking #a both places it      
appears in paragraphs 7#a7 and 7#b7 and 
inserting #aj2  7#b7 by striking #e1jjj 
in paragraph 7#a7 and inserting #ej1jjj2
 and  7#c7 by striking #a1jjj in        
paragraph 7#b7 and inserting #aj1jjj4   
7c7 ,failure ,to provide notice         
,subsection 7h7 of section #ffeb of the 
,internal ,revenue ,code of #aihf is    
amended--  7#a7 by striking #aj and     
inserting #ajj2 and  7#b7 by striking   
#e1jjj and inserting #ej1jjj4  7d7      
,effective date ,the amendments made by 
this section shall apply to returns1    
statements1 and notifications required  
to be filed1 and notices required to be 
provided1 after ,december #ca1 #bjai4   
#ab4 ,increase information sharing to   

administer excise taxes  7a7 ,in general
 ,section #fajc7o7 of the ,internal     
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#c7 ,taxes imposed by      
section #ddha ,returns and return       
information with respect to taxes       
imposed by section #ddha shall be open  
to inspection by or disclosure to       
officers and employees of ,united       
,states ,customs and ,border ,protection
 of the ,department of ,homeland        
,security whose official duties require 
such inspection or disclosure for       
purposes of administering such section4 
4  7b7 ,conforming amendments ,paragraph
 7#d7 of section #fajc7p7 of the        
,internal ,revenue ,code of #aihf is    
amended by striking or 7o77#a77;,a7 each
 place it appears and inserting 1       
7o77#a77;,a71 or 7o77#c74  ,passed the  
,house of ,representatives ,july #bd1   
#bjai4;,cheryl ,l4 ,johnson1,clerk      
,december #ai1 #bjai,read the second    
time and placed on the calendar