,,ii  #aaf? ,,congress  #a/ ,session    
,h4 ,r4 #cig  ,,9 ,,! ,,s5ate ,,( ,,!   
,,unit$ ,,/ates  ,july #be1             
#bjai,receiv$  ,,an ,,act  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to create
 a ,p5sion ,rehabilitation ,tru/ ,fund1 
to e/abli% a ,p5sion ,rehabilitation    
,adm9i/ration )9 ! ,dep>tm5t ( !        
,treasury to make loans to multiemploy] 
def9$ b5efit plans1 & = o!r purposes4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,rehabilitation = ,multiemploy]       
,p5sions ,act ( #bjai4  #b4 ,p5sion     
,rehabilitation ,adm9i/ration2          
e/abli%m5t2 p[]s  7a7 ,e/abli%m5t ,!re  
is e/abli%$ 9 ! ,dep>tm5t ( ! ,treasury 
an ag5cy to be kn[n z ! ,p5sion         
,rehabilitation ,adm9i/ration4  7b7     
,director  7#a7 ,e/abli%m5t ( position  
,!re %all be at ! head ( ! ,p5sion      
,rehabilitation ,adm9i/ration a         
,director1 :o %all be appo9t$ by !      
,presid5t4  7#b7 ,t]m  7,a7 ,9 g5]al ,! 
t]m ( (fice ( ! ,director %all be #e    
ye>s4  7,b7 ,s]vice until appo9tm5t (   

successor ,an individual s]v+ z         
,director at ! expiration ( a t]m may   
cont9ue to s]ve until a successor is    
appo9t$4  7#c7 ,p[]s  7,a7 ,appo9tm5t ( 
,deputy ,directors1 (fic]s1 & employees 
,! ,director may appo9t ,deputy         
,directors1 (fic]s1 & employees1 includ+
 attorneys1 9 accordance ) *apt] #ea &  
sub*apt] ,,iii ( *apt] #ec ( title #e1  
,unit$ ,/ates ,code4  7,b7 ,contract+   
7i7 ,9 g5]al ,! ,director may contract =
 f9ancial & adm9i/rative s]vices        
7includ+ ^? relat$ to budget & acc\nt+1 
f9ancial report+1 p]sonnel1 &           
procurem5t7 ) ! ,g5]al ,s]vices         
,adm9i/ration1 or su* o!r ,f$]al ag5cy z
 ! ,director det]m9es appropriate1 = :i*
 paym5t %all be made 9 advance1 or by   
reimbursem5t1 f funds ( ! ,p5sion       
,rehabilitation ,adm9i/ration 9 su*     
am\nts z may be agre$ ^u by ! ,director 
& ! head ( ! ,f$]al ag5cy provid+ !     
s]vices4  7ii7 ,subject to              
appropriations ,contract au?ority "u    
clause 7i7 %all be effective = any      

fiscal ye> only to ! ext5t t            
appropriations are available = t        
purpose4  #c4 ,p5sion ,rehabilitation   
,tru/ ,fund  7a7 ,9 g5]al ,sub*apt] ,a (
 *apt] #ih ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #ieab4 ,p5sion           
,rehabilitation ,tru/ ,fund  7a7        
,creation ( ,tru/ ,fund ,!re is e/abli%$
 9 ! ,treasury ( ! ,unit$ ,/ates a tru/ 
fund to be kn[n z ! ,p5sion             
,rehabilitation ,tru/ ,fund 7h]eaft] 9  
?is section ref]r$ to z ! ,fund71       
consi/+ ( su* am\nts z may be           
appropriat$ or cr$it$ to ! ,fund z      
provid$ 9 ?is section & section         
#ifjb7;b74  7b7 ,transf]s to ,fund  7#a7
 ,am\nts attributable to ,treasury bonds
 ,!re %all be cr$it$ to ! ,fund ! am\nts
 transf]r$ "u section #f ( !            
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai4  7#b7 ,loan int]e/ &     
pr9cipal  7,a7 ,9 g5]al ,! ,director ( !
 ,p5sion ,rehabilitation ,adm9i/ration  
e/abli%$ "u section #b ( !              

,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai %all deposit 9 ! ,fund any
 am\nts receiv$ f a plan z paym5t (     
int]e/ or pr9cipal on a loan "u section 
#d ( su* ,act4  7,b7 ,int]e/ ,= purposes
 ( subp>agraph 7,a71 ! t]m int]e/       
includes po9ts & o!r simil> am\nts4     
7#c7 ,availability ( funds ,am\nts      
cr$it$ to or deposit$ 9 ! ,fund %all    
rema9 available until exp5d$4  7c7      
,exp5ditures f ,fund ,am\nts 9 ! ,fund  
are available )\t fur!r appropriation to
 ! ,p5sion ,rehabilitation              
,adm9i/ration--  7#a7 = ! purpose ( mak+
 ! loans describ$ 9 section #d ( !      
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai1  7#b7 = ! paym5t (       
pr9cipal & int]e/ on obligations issu$  
"u section #f ( su* ,act1 &  7#c7 =     
adm9i/rative & op]at+ exp5ses ( su*     
,adm9i/ration4  4  7b7 ,cl]ical am5dm5t 
,! table ( sections = sub*apt] ,a (     
*apt] #ih ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #ieab4 ,p5sion        

,rehabilitation ,tru/ ,fund4  4  #d4    
,loan program = multiemploy] def9$      
b5efit plans  7a7 ,loan au?ority  7#a7  
,9 g5]al ,! ,p5sion ,rehabilitation     
,adm9i/ration e/abli%$ "u section #b is 
au?oriz$-- 7,a7 to make loans to        
multiemploy] plans 7z def9$ 9 section   
#dad7;f7 ( ! ,int]nal ,rev5ue ,code (   
#aihf7 :i* are def9$ b5efit plans 7z    
def9$ 9 section #dad7;j7 ( su* ,code7 & 
:i*--  7i7 are 9 critical & decl9+ /atus
 7)9 ! mean+ ( section #dcb7;b77#f7 (   
su* ,code & section #cje7;b77#f7 ( !    
,employee ,retirem5t & ,income ,security
 ,act7 z ( ! date ( ! enactm5t ( ?is    
section1 or ) respect to :i* a susp5sion
 ( b5efits has be5 approv$ "u section   
#dcb7;e77#i7 ( su* ,code & section      
#cje7;e77#i7 ( su* ,act z ( su* date2   
7ii7 z ( su* date ( enactm5t1 are 9     
critical /atus 7)9 ! mean+ ( section    
#dcb7;b77#b7 ( su* ,code & section      
#cje7;b77#b7 ( su* ,act71 h a modifi$   
fund$ p]c5tage ( less ?an #dj p]c5t1 & h
 a ratio ( active to inactive           

p>ticipants :i* is less ?an #b to #e2 or
  7iii7 are insolv5t = purposes (       
section #dah;,e ( su* ,code z ( su* date
 ( enactm5t1 if !y became insolv5t aft] 
,decemb] #af1 #bjad1 & h n be5 t]m9at$2 
&  7,b7 subject to subsection 7b71 to   
e/abli% appropriate t]ms = su* loans4   
,= purposes ( subp>agraph 7,a77ii71 !   
t]m modifi$ fund$ p]c5tage means !      
p]c5tage equal to a fraction ! num]ator 
( :i* is curr5t value ( plan assets 7z  
def9$ 9 section #c7bf7 ( su* ,act7 & !  
d5om9ator ( :i* is curr5t liabilities 7z
 def9$ 9 section #dca7;c77#f77;,d7 ( su*
 ,code & section #cjd7;c77#f77;,d7 ( su*
 ,act74  7#b7 ,consultation ,! ,director
 ( ! ,p5sion ,rehabilitation            
,adm9i/ration %all consult ) ! ,secret>y
 ( ! ,treasury1 ! ,secret>y ( ,labor1 & 
! ,director ( ! ,p5sion ,b5efit ,gu>anty
 ,corporation be=e mak+ any loan "u     
p>agraph 7#a71 & %all %>e ) su* p]sons !
 application & plan in=mation ) respect 
to ea* su* loan4  7#c7 ,e/abli%m5t (    
loan program  7,a7 ,9 g5]al ,a program  

to make ! loans au?oriz$ "u ?is section 
%all be e/abli%$ n lat] ?an ,septemb]   
#cj1 #bjai1 ) guidance reg>d+ su*       
program to be promulgat$ by ! ,director 
( ! ,p5sion ,rehabilitation             
,adm9i/ration1 9 consultation ) !       
,director ( ! ,p5sion ,b5efit ,gu>anty  
,corporation1 ! ,secret>y ( ! ,treasury1
 & ! ,secret>y ( ,labor1 n lat] ?an     
,decemb] #ca1 #bjai4  7,b7 ,loans       
au?oriz$ be=e program date ,)\t reg>d to
 :e!r ! program "u subp>agraph 7,a7 has 
be5 e/abli%$1 a plan may apply = a loan 
"u ?is section be=e ei!r date describ$ 9
 su* subp>agraph1 & ! ,p5sion           
,rehabilitation ,adm9i/ration %all      
approve ! application & make ! loan be=e
 e/abli%m5t ( ! program if necess>y to  
avoid any susp5sion ( ! accru$ b5efits (
 p>ticipants4  7b7 ,loan t]ms  7#a7 ,9  
g5]al ,! t]ms ( any loan made "u        
subsection 7a7 %all /ate t-- 7,a7 ! plan
 %all make paym5ts ( int]e/ on ! loan = 
a p]iod ( #bi ye>s beg9n+ on ! date ( ! 
loan 7or #ai ye>s 9 ! case ( a plan mak+

 ! election "u subsection 7c77#e772     
7,b7 f9al paym5t ( int]e/ & pr9cipal    
%all be due 9 ! #cj? ye> aft] ! date ( !
 loan 7except z provid$ 9 an election "u
 subsection 7c77#e772 &  7,c7 z a       
condition ( ! loan1 ! plan sponsor      
/ipulates t-- 7i7 except z provid$ 9    
clause 7ii71 ! plan w n increase        
b5efits1 all[ any employ] p>ticipat+ 9 !
 plan to r$uce its contributions1 or    
accept any collective b>ga9+ agreem5t   
:i* provides = r$uc$ contribution rates1
 dur+ ! #cj-ye> p]iod describ$ 9        
subp>agraphs 7,a7 & 7,b72  7ii7 9 ! case
 ( a plan ) respect to :i* a susp5sion (
 b5efits has be5 approv$ "u section     
#dcb7;e77#i7 ( ! ,int]nal ,rev5ue ,code 
( #aihf & section #cje7;e77#i7 ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd1 or "u section #dah;,e (   
su* ,code1 be=e ! loan1 ! plan w re9/ate
 ! susp5d$ b5efits 7or w n c>ry out any 
susp5sion :i* has be5 approv$ b n yet   
implem5t$72  7iii7 ! plan sponsor w     
comply ) ! requirem5ts ( section        

#fjei;,a ( ! ,int]nal ,rev5ue ,code (   
#aihf2  7iv7 ! plan w cont9ue to pay all
 premiums due "u section #djjg ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd2 &  7v7 ! plan & plan      
adm9i/rator w meet su* o!r requirem5ts z
 ! ,director ( ! ,p5sion ,rehabilitation
 ,adm9i/ration provides 9 ! loan t]ms4  
,! t]ms ( ! loan %all n make ref]5ce to 
:e!r ! plan is receiv+ f9ancial         
assi/ance "u section #dbfa7;d7 ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adca7;d77  
or to any adju/m5t ( ! loan am\nt "u    
subsection 7d77#b77;,a77ii74  7#b7      
,int]e/ rate ,except z provid$ 9 !      
second s5t5ce ( ?is p>agraph &          
subsection 7c77#e71 loans made "u       
subsection 7a7 %all h z l[ an int]e/    
rate z is feasible4 ,su* rate %all be   
det]m9$ by ! ,p5sion ,rehabilitation    
,adm9i/ration & %all--  7,a7 n be l[]   
?an ! rate ( int]e/ on #cj-ye> ,treasury
 securities on ! fir/ day ( ! cal5d> ye>
 9 :i* ! loan is issu$2 &  7,b7 n exce$ 

! great] (-- 7i7 a rate #j4b p]c5tage   
po9ts high] ?an su* rate ( int]e/ on su*
 date2 or  7ii7 ! rate necess>y to      
collect rev5ues suffici5t to adm9i/] !  
program "u ?is section4  7c7 ,loan      
application  7#a7 ,9 g5]al ,9 apply+ = a
 loan "u subsection 7a71 ! plan sponsor 
%all--  7,a7 demon/rate t1 except z     
provid$ 9 subp>agraph 7,c7-- 7i7 ! loan 
w enable ! plan to avoid insolv5cy = at 
lea/ ! #cj-ye> p]iod describ$ 9         
subp>agraphs 7,a7 & 7,b7 ( subsection   
7b77#a7 or1 9 ! case ( a plan :i* is    
already insolv5t1 to em]ge f insolv5cy  
)9 & avoid insolv5cy = ! rema9d] ( su*  
p]iod2 &  7ii7 ! plan is reasonably     
expect$ to be able to pay b5efits & !   
int]e/ on ! loan dur+ su* p]iod & to    
accumulate suffici5t funds to repay !   
pr9cipal :5 due2  7,b7 provide ! plan's 
mo/ rec5tly fil$ ,=m #eejj z ( ! date ( 
application & any o!r in=mation necess>y
 to det]m9e ! loan am\nt "u subsection  
7d72  7,c7 /ipulate :e!r ! plan is also 
apply+ = f9ancial assi/ance "u section  

#dbfa7;d7 ( ! ,employee ,retirem5t      
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #adca7;d77 9 comb9ation ) !   
loan to enable ! plan to avoid insolv5cy
 & to pay b5efits1 or is already receiv+
 su* f9ancial assi/ance z a result ( a  
previ\s application2  7,d7 /ate 9 :at   
mann] ! loan proce$s w be inve/$        
pursuant to subsection 7d71 ! p]son f   
:om any annuity contracts "u su*        
subsection w be pur*as$1 & ! p]son :o w 
be ! inve/m5t manag] = any portfolio    
implem5t$ "u su* subsection2 &  7,e7    
include su* o!r in=mation &             
c]tifications z ! ,director ( ! ,p5sion 
,rehabilitation ,adm9i/ration %all      
require4  7#b7 ,/&>d = accept+ actu>ial 
& plan sponsor det]m9ations &           
demon/rations 9 ! application ,9        
evaluat+ ! plan sponsor's application1 !
 ,director ( ! ,p5sion ,rehabilitation  
,adm9i/ration %all accept ! det]m9ations
 & demon/rations 9 ! application unless 
! ,director1 9 consultation ) !         
,director ( ! ,p5sion ,b5efit ,gu>anty  

,corporation1 ! ,secret>y ( ! ,treasury1
 & ! ,secret>y ( ,labor1 concludes t any
 su* det]m9ations or demon/rations 9 !  
application 7or any und]ly+ assumptions7
 are unreasonable or are inconsi/5t )   
any rules issu$ by ! ,director pursuant 
to subsection 7g74  7#c7 ,requir$       
actions2 deem$ approval ,! ,director ( !
 ,p5sion ,rehabilitation ,adm9i/ration  
%all approve or d5y any application "u  
?is subsection )9 #ij days aft] !       
submission ( su* application4 ,an       
application %all be deem$ approv$       
unless1 )9 su* #ij days1 ! ,director    
notifies ! plan sponsor ( ! d5ial ( su* 
application & ! reasons = su* d5ial4    
,any approval or d5ial ( an application 
by ! ,director ( ! ,p5sion              
,rehabilitation ,adm9i/ration %all be   
treat$ z a f9al ag5cy action = purposes 
( section #gjd ( title #e1 ,unit$ ,/ates
 ,code4 ,! ,p5sion ,rehabilitation      
,adm9i/ration %all make ! loan pursuant 
to any application promptly aft] !      
approval ( su* application4  7#d7 ,c]ta9

 plans requir$ to apply ,! plan sponsor 
( any plan ) respect to :i* a susp5sion 
( b5efits has be5 approv$ "u section    
#dcb7;e77#i7 ( ! ,int]nal ,rev5ue ,code 
( #aihf & section #cje7;e77#i7 ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd or "u section #dah;,e ( su*
 ,code1 be=e ! date ( ! enactm5t ( ?is  
,act %all apply = a loan "u ?is section4
 ,! ,director ( ! ,p5sion               
,rehabilitation ,adm9i/ration %all      
provide = su* plan sponsors to use !    
simplifi$ application "u subsection     
7d77#b77;,b74  7#e7 ,inc5tive = e>ly    
repaym5t ,! plan sponsor may elect at ! 
"t ( ! application to repay ! loan      
pr9cipal1 along ) ! rema9+ int]e/1 at   
lea/ z rapidly z equal in/allm5ts ov] ! 
#aj-ye> p]iod beg9n+ ) ! #ba/ ye> aft] !
 date ( ! loan4 ,9 ! case ( a plan mak+ 
?is election1 ! int]e/ on ! loan %all be
 r$uc$ by #j4e p]c5tage po9ts4  7d7     
,loan am\nt & use  7#a7 ,am\nt ( loan   
7,a7 ,9 g5]al ,except z provid$ 9       
subp>agraph 7,b7 & p>agraph 7#b71 !     

am\nt ( any loan "u subsection 7a7 %all 
be1 z demon/rat$ by ! plan sponsor on ! 
application "u subsection 7c71 ! am\nt  
ne$$ to pur*ase annuity contracts or to 
implem5t a portfolio describ$ 9 p>agraph
 7#c77;,c7 7or a comb9ation ( ! two7    
suffici5t to provide b5efits (          
p>ticipants & b5efici>ies ( ! plan 9 pay
 /atus1 & t]m9at$ ve/$ b5efits1 at ! "t 
! loan is made4  7,b7 ,plans ) susp5d$  
b5efits ,9 ! case ( a plan ) respect to 
:i* a susp5sion ( b5efits has be5       
approv$ "u section #dcb7;e77#i7 ( !     
,int]nal ,rev5ue ,code ( #aihf & section
 #cje7;e77#i7 ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajhe7;e77#i77 or "u section  
#dah;,e ( su* ,code--  7i7 ! susp5sion (
 b5efits %all n be tak5 into acc\nt 9   
apply+ subp>agraph 7,a72 &  7ii7 ! loan 
am\nt %all be ! am\nt suffici5t to      
provide b5efits ( p>ticipants &         
b5efici>ies ( ! plan 9 pay /atus &      
t]m9at$ ve/$ b5efits at ! "t ! loan is  
made1 det]m9$ )\t reg>d to ! susp5sion1 

includ+ retroactive paym5t ( b5efits :i*
 w\ld o!rwise h be5 payable dur+ ! p]iod
 ( ! susp5sion4  7#b7 ,coord9ation )    
,,pbgc f9ancial assi/ance  7,a7 ,9 g5]al
 ,9 ! case ( a plan :i* is also apply+ =
 f9ancial assi/ance "u section #dbfa7;d7
 ( ! ,employee ,retirem5t ,income       
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#adca7;d77--  7i7 ! plan sponsor %all   
submit ! loan application & !           
application = f9ancial assi/ance jo9tly 
to ! ,p5sion ,rehabilitation            
,adm9i/ration & ! ,p5sion ,b5efit       
,gu>anty ,corporation ) ! in=mation     
necess>y to det]m9e ! eligibility = &   
am\nt ( ! loan "u ?is section & !       
f9ancial assi/ance "u section #dbfa7;d7 
( su* ,act2 &  7ii7 if su* f9ancial     
assi/ance is grant$1 ! am\nt ( ! loan "u
 subsection 7a7 %all n exce$ an am\nt   
equal to ! excess (--  7,i7 ! am\nt     
det]m9$ "u p>agraph 7#a77;,a7 or        
7#a77;,b77ii7 7:i*ev] is applicable72   
ov]  7,,ii7 ! am\nt ( su* f9ancial      
assi/ance4  7,b7 ,plans already receiv+ 

,,pbgc assi/ance ,! ,director ( !       
,p5sion ,rehabilitation ,adm9i/ration   
%all provide = a simplifi$ application =
 ! loan "u ?is section :i* may be us$ by
 an insolv5t plan :i* has n be5 t]m9at$ 
& :i* is already receiv+ f9ancial       
assi/ance 7o!r ?an "u section #dbfa7;d7 
( su* ,act7 f ! ,p5sion ,b5efit ,gu>anty
 ,corporation at ! "t ( ! application = 
! loan "u ?is section4  7#c7 ,use ( loan
 funds  7,a7 ,9 g5]al ,not)/&+ section  
#dcb7;f77#b77;,a77ii7 ( ! ,int]nal      
,rev5ue ,code ( #aihf & section         
#cje7;f77#b77;,a77ii7 ( su* ,act1 ! loan
 receiv$ "u subsection 7a7 %all only be 
us$ to pur*ase annuity contracts :i*    
meet ! requirem5ts ( subp>agraph 7,b7 or
 to implem5t a portfolio describ$ 9     
subp>agraph 7,c7 7or a comb9ation ( !   
two7 to provide ! b5efits describ$ 9    
p>agraph 7#a74  7,b7 ,annuity contract  
requirem5ts ,! annuity contracts pur*as$
 "u subp>agraph 7,a7 %all be issu$ by an
 insurance company :i* is lic5s$ to d   
bus9ess "u ! laws ( any ,/ate & :i* is  

rat$ ,a or bett] by a nationally        
recogniz$ /ati/ical rat+ organization1 &
 ! pur*ase ( su* contracts %all meet all
 applicable fiduci>y /&>ds "u !         
,employee ,retirem5t ,income ,security  
,act ( #aigd4  7,c7 ,portfolio  7i7 ,9  
g5]al ,a portfolio describ$ 9 ?is       
subp>agraph is-- 7,i7 a ca% mat*+       
portfolio or duration mat*+ portfolio   
consi/+ ( inve/m5t grade 7z rat$ by a   
nationally recogniz$ /ati/ical rat+     
organization7 fix$ income inve/m5ts1    
includ+ ,unit$ ,/ates doll>-d5om9at$    
public or private debt obligations issu$
 or gu>ante$ by ! ,unit$ ,/ates or a    
=eign issu]1 :i* are tradeable 9 ,unit$ 
,/ates curr5cy & are issu$ at fix$ or   
z]o c\pon rates2 or  7,,ii7 any o!r     
portfolio prescrib$ by ! ,secret>y ( !  
,treasury 9 regulations :i* has a simil>
 risk pr(ile to ! portfolios describ$ 9 
subclause 7,i7 & is equally protective (
 ! int]e/s ( p>ticipants & b5efici>ies4 
,once implem5t$1 su* a portfolio %all be
 ma9ta9$ until all liabilities to       

p>ticipants & b5efici>ies 9 pay /atus1 &
 t]m9at$ ve/$ p>ticipants1 at ! "t ( !  
loan are satisfi$4  7ii7 ,fiduci>y duty 
,any inve/m5t manag] ( a portfolio "u   
?is subp>agraph %all ackn[l$ge 9 writ+ t
 su* p]son is a fiduci>y "u ! ,employee 
,retirem5t ,income ,security ,act (     
#aigd ) respect to ! plan4  7iii7       
,treatm5t ( p>ticipants & b5efici>ies   
,p>ticipants & b5efici>ies cov]$ by a   
portfolio "u ?is subp>agraph %all       
cont9ue to be treat$ z p>ticipants &    
b5efici>ies ( ! plan1 includ+ = purposes
 ( title ,,iv ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd4  7,d7   
,acc\nt+  7i7 ,9 g5]al ,annuity         
contracts pur*as$ & portfolios implem5t$
 "u ?is p>agraph %all be us$ solely to  
provide ! b5efits describ$ 9 p>agraph   
7#a7 until all su* b5efits h be5 paid & 
%all be acc\nt$ = sep>ately f ! o!r     
assets ( ! plan4  7ii7 ,ov]sight (      
non-annuity inve/m5ts  7,i7 ,9 g5]al    
,any portfolio implem5t$ "u ?is p>agraph
 %all be subject to ov]sight by !       

,p5sion ,rehabilitation ,adm9i/ration1  
includ+ a m&atory tri5nial review ( !   
adequacy ( ! portfolio to provide !     
b5efits describ$ 9 p>agraph 7#a7 &      
approval 7to be provid$ )9 a reasonable 
p]iod ( "t7 ( any decision by ! plan    
sponsor to *ange ! inve/m5t manag] ( !  
portfolio4  7,,ii7 ,rem$ial action ,if !
 ov]sight "u subclause 7,i7 det]m9es an 
inadequacy1 ! plan sponsor %all take    
rem$ial action to ensure t ! inadequacy 
w be cur$ )9 #b ye>s ( su* det]m9ation4 
7,e7 ,ombudsp]son ,! ,p>ticipant & ,plan
 ,sponsor ,advocate e/abli%$ "u section 
#djjd ( ! ,employee ,retirem5t ,income  
,security ,act ( #aigd %all act z       
ombudsp]son = p>ticipants & b5efici>ies 
on behalf ( :om annuity contracts are   
pur*as$ or :o are cov]$ by a portfolio  
"u ?is p>agraph4  7e7 ,collection (     
repaym5t ,except z provid$ 9 subsection 
7f71 ! ,p5sion ,rehabilitation          
,adm9i/ration %all make e ef=t to       
collect repaym5t ( loans "u ?is section 
9 accordance ) section #cgaa ( title    

#ca1 ,unit$ ,/ates ,code4  7f7 ,loan    
default ,if a plan is unable to make any
 paym5t on a loan "u ?is section :5 due1
 ! ,p5sion ,rehabilitation ,adm9i/ration
 %all negotiate ) ! plan sponsor revis$ 
t]ms = repaym5t 7includ+ in/allm5t      
paym5ts ov] a reasonable p]iod or       
=giv5ess ( a portion ( ! loan pr9cipal71
 b only to ! ext5t necess>y to avoid    
insolv5cy 9 ! subsequ5t #ah mon?s4  7g7 
,au?ority ,to issue rules1 ,etc ,!      
,director ( ! ,p5sion ,rehabilitation   
,adm9i/ration1 9 consultation ) !       
,director ( ! ,p5sion ,b5efit ,gu>anty  
,corporation1 ! ,secret>y ( ! ,treasury1
 & ! ,secret>y ( ,labor1 is au?oriz$ to 
issue rules reg>d+ ! =m1 cont5t1 &      
process ( applications = loans "u ?is   
section1 actu>ial /&>ds & assumptions to
 be us$ 9 mak+ e/imates & projections = 
purposes ( su* applications1 &          
assumptions reg>d+ int]e/ rates1        
mortality1 & di/ributions ) respect to a
 portfolio describ$ 9 subsection        
7d77#c77;,c74  7h7 ,report to ,congress 

on /atus ( c]ta9 plans ) loans ,n lat]  
?an #a ye> aft] ! date ( ! enactm5t (   
?is ,act1 & annually !reaft]1 !         
,director ( ! ,p5sion ,rehabilitation   
,adm9i/ration %all submit to !          
,committee on ,ways & ,means & !        
,committee on ,education & ,labor ( !   
,h\se ( ,repres5tatives1 & ! ,committee 
on ,f9ance & ! ,committee on ,heal?1    
,education1 ,labor & ,p5sions ( !       
,s5ate1 a report id5tify+ any plan t--  
7#a7 has fail$ to make any s*$ul$ paym5t
 on a loan "u ?is section2  7#b7 has    
negotiat$ revis$ t]ms = repaym5t ( su*  
loan 7includ+ any in/allm5t paym5ts or  
=giv5ess ( a portion ( ! loan pr9cipal72
 or  7#c7 ! ,director has det]m9$ is no 
long] reasonably expect$ to be able to--
 7,a7 pay b5efits & ! int]e/ on ! loan2 
or  7,b7 accumulate suffici5t funds to  
repay ! pr9cipal :5 due4  ,su* report   
%all include ! details ( any su*        
failure1 revis$ t]ms1 or det]m9ation1 z 
! case may be4  7i7 ,coord9ation )      
taxation ( unrelat$ bus9ess income      

,subp>agraph 7,a7 ( section #ead7;c77#f7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$--  7#a7 by /rik+ or at ! end (    
clause 7i72  7#b7 by /rik+ ! p]iod at ! 
end ( clause 7ii77,,ii7 & ins]t+ 1 or2 &
  7#c7 by add+ at ! end ! foll[+ new    
clause3  7iii7 indebt$ness ) respect to 
a multiemploy] plan "u a loan made by ! 
,p5sion ,rehabilitation ,adm9i/ration   
pursuant to section #d ( !              
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai4  4  #e4 ,coord9ation )   
)drawal liability & fund+ rules  7a7    
,am5dm5t to ,int]nal ,rev5ue ,code (    
#aihf ,section #dcb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new subsection3  7k7 ,special 
rules = plans receiv+ p5sion            
rehabilitation loans  7#a7 ,det]m9ation 
( )drawal liability  7,a7 ,9 g5]al ,if  
any employ] p>ticipat+ 9 a plan at ! "t 
! plan receives a loan "u section #d7;a7
 ( ! ,rehabilitation = ,multiemploy]    
,p5sions ,act ( #bjai )draws f ! plan   
be=e ! end ( ! #cj-ye> p]iod beg9n+ on !

 date ( ! loan1 ! )drawal liability (   
su* employ] %all be det]m9$ "u !        
,employee ,retirem5t ,income ,security  
,act ( #aigd--  7i7 by apply+ section   
#dbai7;c77#a77;,d7 ( ! ,employee        
,retirem5t ,income ,security ,act (     
#aigd z if ! plan 7 t]m9at+ by ! )drawal
 ( e employ] f ! plan1 &  7ii7 by       
det]m9+ ! value ( non=feitable b5efits  
"u ! plan at ! "t ( ! deem$ t]m9ation by
 us+ ! int]e/ assumptions prescrib$ =   
purposes ( section #djdd ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd1 z prescrib$ 9 ! regulations "u   
section #dbha ( ! ,employee ,retirem5t  
,income ,security ,act ( #aigd 9 ! case 
( su* a mass )drawal4  7,b7 ,annuity    
contracts & inve/m5t portfolios pur*as$ 
) loan funds ,annuity contracts pur*as$ 
& portfolios implem5t$ "u section       
#d7;d77#c7 ( ! ,rehabilitation =        
,multiemploy] ,p5sions ,act ( #bjai %all
 n be tak5 into acc\nt z plan assets 9  
det]m9+ ! )drawal liability ( any       
employ] "u subp>agraph 7,a71 b ! am\nt  

equal to ! great] (--  7i7 ! b5efits    
provid$ "u su* contracts or portfolios  
to p>ticipants & b5efici>ies1 or  7ii7 !
 rema9+ paym5ts due on ! loan "u section
 #d7;a7 ( su* ,act1  %all be tak5 into  
acc\nt z unfund$ ve/$ b5efits 9 det]m9+ 
su* )drawal liability4  7#b7            
,coord9ation ) fund+ requirem5ts ,9 !   
case ( a plan :i* receives a loan "u    
section #d7;a7 ( ! ,rehabilitation =    
,multiemploy] ,p5sions ,act ( #bjai--   
7,a7 annuity contracts pur*as$ &        
portfolios implem5t$ "u section         
#d7;d77#c7 ( su* ,act1 & ! b5efits      
provid$ to p>ticipants & b5efici>ies "u 
su* contracts or portfolios1 %all n be  
tak5 into acc\nt 9 det]m9+ m9imum       
requir$ contributions "u section #dab1  
7,b7 paym5ts on ! int]e/ & pr9cipal "u !
 loan1 & any b5efits ow$ 9 excess ( ^?  
provid$ "u su* contracts or portfolios1 
%all be tak5 into acc\nt z liabilities =
 purposes ( su* section1 &  7,c7 if su* 
a portfolio is project$ due to          
unfavorable inve/m5t or actu>ial        

exp]i5ce to be unable to fully satisfy !
 liabilities :i* x cov]s1 ! am\nt ( !   
liabilities project$ to be unsatisfi$   
%all be tak5 into acc\nt z liabilities =
 purposes ( su* section4  4  7b7        
,am5dm5t to ,employee ,retirem5t ,income
 ,security ,act ( #aigd ,section #cje ( 
! ,employee ,retirem5t ,income ,security
 ,act ( #aigd 7#bi ,u4,s4,c4 #ajhe7 is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7k7 ,special rules = plans 
receiv+ p5sion rehabilitation loans     
7#a7 ,det]m9ation ( )drawal liability   
7,a7 ,9 g5]al ,if any employ] p>ticipat+
 9 a plan at ! "t ! plan receives a loan
 "u section #d7;a7 ( ! ,rehabilitation =
 ,multiemploy] ,p5sions ,act ( #bjai    
)draws f ! plan be=e ! end ( ! #cj-ye>  
p]iod beg9n+ on ! date ( ! loan1 !      
)drawal liability ( su* employ] %all be 
det]m9$--  7i7 by apply+ section        
#dbai7;c77#a77;,d7 z if ! plan 7 t]m9at+
 by ! )drawal ( e employ] f ! plan1 &   
7ii7 by det]m9+ ! value ( non=feitable  
b5efits "u ! plan at ! "t ( ! deem$     

t]m9ation by us+ ! int]e/ assumptions   
prescrib$ = purposes ( section #djdd1 z 
prescrib$ 9 ! regulations "u section    
#dbha 9 ! case ( su* a mass )drawal4    
7,b7 ,annuity contracts & inve/m5t      
portfolios pur*as$ ) loan funds ,annuity
 contracts pur*as$ & portfolios         
implem5t$ "u section #d7;d77#c7 ( !     
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai %all n be tak5 into acc\nt
 9 det]m9+ ! )drawal liability ( any    
employ] "u subp>agraph 7,a71 b ! am\nt  
equal to ! great] (--  7i7 ! b5efits    
provid$ "u su* contracts or portfolios  
to p>ticipants & b5efici>ies1 or  7ii7 !
 rema9+ paym5ts due on ! loan "u section
 #d7;a7 ( su* ,act1  %all be tak5 into  
acc\nt z unfund$ ve/$ b5efits 9 det]m9+ 
su* )drawal liability4  7#b7            
,coord9ation ) fund+ requirem5ts ,9 !   
case ( a plan :i* receives a loan "u    
section #d7;a7 ( ! ,rehabilitation =    
,multiemploy] ,p5sions ,act ( #bjai--   
7,a7 annuity contracts pur*as$ &        
portfolios implem5t$ "u section         

#d7;d77#c7 ( su* ,act1 & ! b5efits      
provid$ to p>ticipants & b5efici>ies "u 
su* contracts or portfolios1 %all n be  
tak5 into acc\nt 9 det]m9+ m9imum       
requir$ contributions "u section #cjb1  
7,b7 paym5ts on ! int]e/ & pr9cipal "u !
 loan1 & any b5efits ow$ 9 excess ( ^?  
provid$ "u su* contracts or portfolios1 
%all be tak5 into acc\nt z liabilities =
 purposes ( su* section1 &  7,c7 if su* 
a portfolio is project$ due to          
unfavorable inve/m5t or actu>ial        
exp]i5ce to be unable to fully satisfy !
 liabilities :i* x cov]s1 ! am\nt ( !   
liabilities project$ to be unsatisfi$   
%all be tak5 into acc\nt z liabilities =
 purposes ( su* section4  4  #f4        
,issuance ( ,treasury bonds ,! ,secret>y
 ( ! ,treasury %all f "t to "t transf] f
 ! g5]al fund ( ! ,treasury to ! ,p5sion
 ,rehabilitation ,tru/ ,fund e/abli%$ "u
 section #ieab ( ! ,int]nal ,rev5ue     
,code ( #aihf su* am\nts z are necess>y 
to fund ! loan program "u section #d (  
?is ,act1 includ+ f proce$s f !         

,secret>y's issuance ( obligations "u   
*apt] #ca ( title #ca1 ,unit$ ,/ates    
,code4  #g4 ,reports ( plans receiv+    
p5sion rehabilitation loans  7a7 ,9     
g5]al ,subp>t ,e ( "p ,,iii ( sub*apt]  
,a ( *apt] #fa ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new section3  #fjei;,a4        
,reports ( plans receiv+ p5sion         
rehabilitation loans  7a7 ,9 g5]al ,9 ! 
case ( a plan receiv+ a loan "u section 
#d7;a7 ( ! ,rehabilitation =            
,multiemploy] ,p5sions ,act ( #bjai1 )  
respect to ! fir/ plan ye> beg9n+ aft] !
 date ( ! loan & ea* ( ! #bi succe$+    
plan ye>s1 n lat] ?an ! #ij? day ( ea*  
su* plan ye> ! plan sponsor %all file ) 
! ,secret>y a report 7includ+           
appropriate docum5tation & actu>ial     
c]tifications f ! plan actu>y1 z requir$
 by ! ,secret>y7 t conta9s--  7#a7 !    
fund$ p]c5tage 7z def9$ 9 section       
#dcb7;j77#b77 z ( ! fir/ day ( su* plan 
ye>1 & ! und]ly+ actu>ial value ( assets
 7det]m9$ ) reg>d1 & )\t reg>d1 to      

annuity contracts pur*as$ & portfolios  
implem5t$ ) proce$s ( su* loan7 &       
liabilities 7includ+ any am\nts due )   
respect to su* loan7 tak5 into acc\nt 9 
det]m9+ su* p]c5tage1  7#b7 ! m>ket     
value ( ! assets ( ! plan 7det]m9$ z    
provid$ 9 p>agraph 7#a77 z ( ! la/ day (
 ! plan ye> prec$+ su* plan ye>1  7#c7 !
 total value ( all contributions made by
 employ]s & employees dur+ ! plan ye>   
prec$+ su* plan ye>1  7#d7 ! total value
 ( all b5efits paid dur+ ! plan ye>     
prec$+ su* plan ye>1  7#e7 ca% fl[      
projections = su* plan ye> & ! #i       
succe$+ plan ye>s1 & ! assumptions us$ 9
 mak+ su* projections1  7#f7 fund+ /&>d 
acc\nt projections = su* plan ye> & ! #i
 succe$+ plan ye>s1 & ! assumptions     
reli$ ^u 9 mak+ su* projections1  7#g7 !
 total value ( all inve/m5t ga9s or     
losses dur+ ! plan ye> prec$+ su* plan  
ye>1  7#h7 any significant r$uction 9 ! 
numb] ( active p>ticipants dur+ ! plan  
ye> prec$+ su* plan ye>1 & ! reason =   
su* r$uction1  7#i7 a li/ ( employ]s t  

)drew f ! plan 9 ! plan ye> prec$+ su*  
plan ye>1 & ! result+ r$uction 9        
contributions1  7#aj7 a li/ ( employ]s t
 paid )drawal liability to ! plan dur+ !
 plan ye> prec$+ su* plan ye> &1 = ea*  
employ]1 a total assessm5t ( ! )drawal  
liability paid1 ! annual paym5t am\nt1 &
 ! numb] ( ye>s rema9+ 9 ! paym5t s*$ule
 ) respect to su* )drawal liability1    
7#aa7 any mat]ial *anges to b5efits1    
accrual rates1 or contribution rates    
dur+ ! plan ye> prec$+ su* plan ye>1 &  
:e!r su* *anges relate to ! t]ms ( !    
loan1  7#ab7 details reg>d+ any fund+   
improvem5t plan or rehabilitation plan &
 updates to su* plan1  7#ac7 ! numb] (  
p>ticipants dur+ ! plan ye> prec$+ su*  
plan ye> :o are active p>ticipants1 !   
numb] ( p>ticipants & b5efici>ies 9 pay 
/atus1 & ! numb] ( t]m9at$ ve/$         
p>ticipants & b5efici>ies1  7#ad7 !     
am\nt ( any f9ancial assi/ance receiv$  
"u section #dbfa ( ! ,employee          
,retirem5t ,income ,security ,act (     
#aigd to pay b5efits dur+ ! prec$+ plan 

ye>1 & ! total am\nt ( su* f9ancial     
assi/ance receiv$ = all prec$+ ye>s1    
7#ae7 ! in=mation conta9$ on ! mo/ rec5t
 annual fund+ notice submitt$ by ! plan 
"u section #aja7;f7 ( ! ,employee       
,retirem5t ,income ,security ,act (     
#aigd1  7#af7 ! in=mation conta9$ on !  
mo/ rec5t annual return "u section #fjeh
 & actu>ial report "u section #fjei ( ! 
plan1 &  7#ag7 copies ( ! plan docum5t &
 am5dm5ts1 o!r retirem5t b5efit or      
ancill>y b5efit plans relat+ to ! plan &
 contribution obligations "u su* plans1 
a breakd[n ( adm9i/rative exp5ses ( !   
plan1 p>ticipant c5sus data &           
di/ribution ( b5efits1 ! mo/ rec5t      
actu>ial valuation report z ( ! plan    
ye>1 copies ( collective b>ga9+         
agreem5ts1 & f9ancial reports1 & su* o!r
 in=mation z ! ,secret>y1 9 consultation
 ) ! ,director ( ! ,p5sion              
,rehabilitation ,adm9i/ration1 may      
require4  7b7 ,electronic submission ,! 
report requir$ "u subsection 7a7 %all be
 submitt$ electronically4  7c7          

,in=mation %>+ ,! ,secret>y %all %>e !  
in=mation 9 ! report "u subsection 7a7 )
 ! ,secret>y ( ,labor & ! ,director ( ! 
,p5sion ,b5efit ,gu>anty ,corporation4  
7d7 ,report to p>ticipants1 b5efici>ies1
 & employ]s ,ea* plan sponsor requir$ to
 file a report "u subsection 7a7 %all1  
be=e ! expiration ( ! "t prescrib$ = !  
fil+ ( su* report1 also provide a summ>y
 7writt5 9 a mann] s z to be und]/ood by
 ! av]age plan p>ticipant7 ( ! in=mation
 9 su* report to p>ticipants &          
b5efici>ies 9 ! plan & to ea* employ] ) 
an obligation to contribute to ! plan4  
4  7b7 ,p5alty ,subsection 7e7 ( section
 #ffeb ( ! ,int]nal ,rev5ue ,code (     
#aihf is am5d$-- 7#a7 by ins]t+ 1       
#fjei;,a 7relat+ to reports ( plans     
receiv+ p5sion rehabilitation loans7    
aft] def]r$ comp5sation72  7#b7 by      
ins]t+ 7#ajj 9 ! case ( failures "u     
section #fjei;,a7 aft] #be2 &  7#c7 by  
add+ at ! end ! foll[+3 ,9 ! case ( a   
failure ) respect to section #fjei;,a1 !
 am\nt impos$ "u ?is subsection %all n  

be paid f ! assets ( ! plan44  7c7      
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,e ( "p ,,iii ( sub*apt] ,a (    
*apt] #fa ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #fjei;,a4 ,reports (  
plans receiv+ p5sion rehabilitation     
loans4  4  #h4 ,,pbgc f9ancial assi/ance
  7a7 ,9 g5]al ,section #dbfa ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adca7 is   
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7d7  7#a7 ,! plan sponsor (
 a multiemploy] plan-- 7,a7 :i* is 9    
critical & decl9+ /atus 7)9 ! mean+ (   
section #cje7;b77#f77 z ( ! date ( !    
enactm5t ( ?is subsection1 or ) respect 
to :i* a susp5sion ( b5efits has be5    
approv$ "u section #cje7;e77#i7 z ( su* 
date2  7,b7 :i*1 z ( su* date (         
enactm5t1 is 9 critical /atus 7)9 !     
mean+ ( section #cje7;b77#b771 has a    
modifi$ fund$ p]c5tage ( less ?an #dj   
p]c5t 7z def9$ 9 section #d7;a77#a7 ( ! 
,rehabilitation = ,multiemploy] ,p5sions

 ,act ( #bjai71 & has a ratio ( active  
to inactive p>ticipants :i* is less ?an 
#b to #e2 or  7,c7 :i* is insolv5t =    
purposes ( section #dah;,e ( ! ,int]nal 
,rev5ue ,code ( #aihf z ( su* date (    
enactm5t1 if ! plan became insolv5t aft]
 ,decemb] #af1 #bjad1 & has n be5       
t]m9at$2  & :i* is apply+ = a loan "u   
section #d7;a7 ( ! ,rehabilitation =    
,multiemploy] ,p5sions ,act ( #bjai may 
also apply to ! corporation = f9ancial  
assi/ance "u ?is subsection1 by jo9tly  
submitt+ su* applications 9 accordance )
 section #d7;d77#b7 ( su* ,act4 ,!      
application = f9ancial assi/ance "u ?is 
subsection %all demon/rate1 bas$ on     
projections by ! plan actu>y1 t aft] !  
receipt ( ! anticipat$ loan am\nt "u    
section #d7;a7 ( su* ,act1 ! plan w /ill
 become 7or rema97 insolv5t )9 ! #cj-ye>
 p]iod beg9n+ on ! date ( ! loan4  7#b7 
,9 review+ an application "u p>agraph   
7#a71 ! corporation %all review !       
det]m9ations & demon/rations submitt$ ) 
! loan application "u section #d7;c7 ( !

 ,rehabilitation = ,multiemploy]        
,p5sions ,act ( #bjai & provide guidance
 reg>d+ su* det]m9ations & demon/rations
 prior to approv+ any application =     
f9ancial assi/ance "u ?is subsection4 ,!
 corporation may d5y any application if 
any su* det]m9ations or demon/rations   
7or any und]ly+ assumptions7 are        
unreasonable1 or inconsi/5t ) rules     
issu$ by ! corporation1 & ! plan & !    
corporation are unable to rea* agreem5t 
on su* det]m9ations or demon/rations4 ,!
 corporation %all prescribe any su*     
rules or guidance n lat] ?an ,decemb]   
#ca1 #bjai4  7#c7  7,a7 ,9 ! case ( a   
plan describ$ 9 p>agraph 7#a77;,a7 or   
7#a77;,b71 ! total f9ancial assi/ance   
provid$ "u ?is subsection %all be an    
am\nt equal to ! smalle/ portion ( !    
loan am\nt ) respect to ! plan "u       
p>agraph 7#a77;,a7 or 7#a77;,b77ii7 (   
section #d7;d7 ( ! ,rehabilitation =    
,multiemploy] ,p5sions ,act ( #bjai     
7det]m9$ )\t reg>d to p>agraph 7#b7     
!re(7 t1 if provid$ z f9ancial assi/ance

 "u ?is subsection in/ead ( a loan1 w\ld
 all[ ! plan to avoid ! project$        
insolv5cy4  7,b7 ,su* am\nt %all n exce$
 ! pres5t value ( ! maximum gu>ante$    
b5efit ) respect to all p>ticipants &   
b5efici>ies ( ! plan "u sections        
#djbb;,a & #djbb;,b4 ,= purposes ( !    
prec$+ s5t5ce1 ! pres5t value ( !       
maximum gu>ante$ b5efit am\nt %all be   
det]m9$ by disreg>d+ any loan available 
f ! ,p5sion ,rehabilitation             
,adm9i/ration & %all be det]m9$ z if !  
plan 7 insolv5t on ! date ( !           
application1 & ! pres5t value ( !       
maximum gu>ante$ b5efit am\nt ) respect 
to su* p>ticipants & b5efici>ies may be 
calculat$ 9 ! aggregate1 r ?an by       
ref]5ce to ! b5efit ( ea* su* p>ticipant
 or b5efici>y4  7#d7 ,9 ! case ( a plan 
describ$ 9 p>agraph 7#a77;,c71 !        
f9ancial assi/ance provid$ pursuant to  
su* application "u ?is subsection %all  
be ! pres5t value ( ! am\nt 7det]m9$ by 
! plan actu>y & submitt$ on !           
application7 t1 if su* am\nt 7 paid by !

 corporation 9 comb9ation ) ! loan & any
 o!r assi/ance be+ provid$ to ! plan by 
! corporation at ! "t ( ! application1  
w\ld enable ! plan to em]ge f insolv5cy 
& avoid any o!r insolv5cy project$ "u   
p>agraph 7#a74  7#e7  7,a7  7i7 ,except 
z provid$ 9 subp>agraph 7,b71 if !      
corporation det]m9es at ! "t ( approval1
 or at ! beg9n+ ( any plan ye> beg9n+   
!reaft]1 t ! plan's #e-ye> exp5diture   
projection 7det]m9$ )\t reg>d to loan   
paym5ts describ$ 9 clause 7iii77,,iii77 
exce$s ! fair m>ket value ( ! plan's    
assets1 ! corporation %all 7subject to !
 total am\nt ( f9ancial assi/ance       
approv$ "u ?is subsection7 provide su*  
assi/ance 9 an am\nt equal to ! less]   
(--  7,i7 ! am\nt by :i* ! plan's #e-ye>
 exp5diture projection exce$s su* fair  
m>ket value2 or  7,,ii7 ! plan's expect$
 exp5ditures = ! plan ye>4  7ii7 ,=     
purposes ( ?is subp>agraph1 ! t]m #e-ye>
 exp5diture projection means1 ) respect 
to any plan = a plan ye>1 an am\nt equal
 to #ejj p]c5t ( ! plan's expect$       

exp5ditures = ! plan ye>4  7iii7 ,=     
purposes ( ?is subp>agraph1 ! t]m       
expect$ exp5ditures means1 ) respect to 
any plan = a plan ye>1 an am\nt equal to
 ! sum (-- 7,i7 expect$ b5efit paym5ts =
 ! plan ye>2  7,,ii7 expect$            
adm9i/rative exp5se paym5ts = ! plan    
ye>2 plus  7,,iii7 paym5ts on ! loan    
s*$ul$ dur+ ! plan ye> pursuant to !    
t]ms ( ! loan "u section #d7;b7 ( !     
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai4  7iv7 ,= purposes ( ?is  
subp>agraph1 9 ! case ( any plan ye>    
dur+ :i* a plan is approv$ = a loan "u  
section #d ( su* ,act1 b has n yet      
receiv$ ! proce$s1 su* proce$s %all be  
includ$ 9 det]m9+ ! fair m>ket value ( !
 plan's assets = ! plan ye>4 ,! prec$+  
s5t5ce %all n apply 9 ! case ( any plan 
t = ! plan ye> beg9n+ 9 #bjae 0 c]tifi$ 
pursuant to section #cje7;b77#c7 z be+ 9
 critical & decl9+ /atus1 & _h m ?an    
#cjj1jjj p>ticipants4  7,b7 ,! f9ancial 
assi/ance "u ?is subsection %all be     
provid$ 9 a lump sum if ! plan sponsor  

demon/rates 9 ! application1 & !        
corporation det]m9es1 t su* a lump sum  
paym5t is necess>y = ! plan to avoid !  
insolv5cy to :i* ! application relates4 
,9 ! case ( a plan describ$ 9 p>agraph  
7#a77;,c71 su* lump sum %all be provid$ 
n lat] ?an ,decemb] #ca1 #bjbj4  7#f7   
,subsections 7b7 & 7c7 %all apply to    
f9ancial assi/ance "u ?is subsection z  
if x 7 provid$ "u subsection 7a71 except
 t ! t]ms = repaym5t "u subsection      
7b77#b7 %all n require ! f9ancial       
assi/ance to be repaid be=e ! date on   
:i* ! loan "u section #d7;a7 ( !        
,rehabilitation = ,multiemploy] ,p5sions
 ,act ( #bjai is repaid 9 full4  7#g7 ,!
 corporation may =go repaym5t ( !       
f9ancial assi/ance provid$ "u ?is       
subsection if necess>y to avoid any     
susp5sion ( ! accru$ b5efits (          
p>ticipants4  4  7b7 ,appropriations    
,!re is appropriat$ to ! ,director ( !  
,p5sion ,b5efit ,gu>anty ,corporation   
su* sums z may be necess>y = ea* fiscal 
ye> to provide ! f9ancial assi/ance     

describ$ 9 section #dbfa7;d7 ( !        
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adca7;d77  
7z add$ by ?is section7 7includ+        
necess>y adm9i/rative & op]at+ exp5ses  
relat+ to su* assi/ance74  #i4          
,modification ( requir$ di/ribution     
rules = designat$ b5efici>ies  7a7      
,modification ( rules :]e employee dies 
be=e entire di/ribution  7#a7 ,9 g5]al  
,section #dja7;a77#i7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,h7
 ,special rules = c]ta9 def9$           
contribution plans ,9 ! case ( a def9$  
contribution plan1 if an employee dies  
be=e ! di/ribution ( ! employee's entire
 int]e/--  7i7 ,9 g5]al ,except 9 ! case
 ( a b5efici>y :o is n a designat$      
b5efici>y1 subp>agraph 7,b77ii7-- 7,i7  
%all be appli$ by sub/itut+ #aj ye>s =  
#e ye>s1 &  7,,ii7 %all apply :e!r or n 
di/ributions ( ! employee's int]e/s h   
begun 9 accordance ) subp>agraph 7,a74  
7ii7 ,exception only = eligible         

designat$ b5efici>ies ,subp>agraph      
7,b77iii7 %all apply only 9 ! case ( an 
eligible designat$ b5efici>y4  7iii7    
,rules ^u dea? ( eligible designat$     
b5efici>y ,if an eligible designat$     
b5efici>y dies be=e ! portion ( !       
employee's int]e/ to :i* ?is subp>agraph
 applies is entirely di/ribut$1 !       
exception "u clause 7iii7 %all n apply  
to any b5efici>y ( su* eligible         
designat$ b5efici>y & ! rema9d] ( su*   
portion %all be di/ribut$ )9 #aj ye>s   
aft] ! dea? ( su* eligible designat$    
b5efici>y4  7iv7 ,application to c]ta9  
eligible retirem5t plans ,= purposes (  
apply+ ! provisions ( ?is subp>agraph 9 
det]m9+ am\nts requir$ to be di/ribut$  
pursuant to ?is p>agraph1 all eligible  
retirem5t plans 7z def9$ 9 section      
#djb7;c77#h77;,b71 o!r ?an a def9$      
b5efit plan describ$ 9 clause 7iv7 or   
7v7 !re( or a qualifi$ tru/ :i* is a "p 
( a def9$ b5efit plan7 %all be treat$ z 
a def9$ contribution plan4  4  7#b7     
,def9ition ( eligible designat$         

b5efici>y ,section #dja7;a77#i77;,e7 (  
su* ,code is am5d$ to read z foll[s3    
7,e7 ,def9itions & rules relat+ to      
designat$ b5efici>y ,= purposes ( ?is   
p>agraph--  7i7 ,designat$ b5efici>y ,! 
t]m designat$ b5efici>y means any       
individual designat$ z a b5efici>y by ! 
employee4  7ii7 ,eligible designat$     
b5efici>y ,! t]m eligible designat$     
b5efici>y means1 ) respect to any       
employee1 any designat$ b5efici>y :o    
is--  7,i7 ! surviv+ sp\se ( ! employee1
  7,,ii7 subject to clause 7iii71 a *ild
 ( ! employee :o has n rea*$ majority   
7)9 ! mean+ ( subp>agraph 7,f771        
7,,iii7 disabl$ 7)9 ! mean+ ( section   
#gb7m77#g771  7,,iv7 a *ronically ill   
individual 7)9 ! mean+ ( section        
#ggjb;,b7c77#b71 except t ! requirem5ts 
( subp>agraph 7,a77i7 !re( %all only be 
treat$ z met if !re is a c]tification t1
 z ( su* date1 ! p]iod ( inability      
describ$ 9 su* subp>agraph ) respect to 
! individual is an indef9ite "o :i* is  
reasonably expect$ to be l5g?y 9        

nature71 or  7,v7 an individual n       
describ$ 9 any ( ! prec$+ subclauses :o 
is n m ?an #aj ye>s y\ng] ?an !         
employee4  7iii7 ,special rule = *ildr5 
,subject to subp>agraph 7,f71 an        
individual describ$ 9 clause 7ii77,,ii7 
%all cease to be an eligible designat$  
b5efici>y z ( ! date ! individual rea*es
 majority & any rema9d] ( ! portion ( ! 
individual's int]e/ to :i* subp>agraph  
7,h77ii7 applies %all be di/ribut$ )9   
#aj ye>s aft] su* date4  7iv7 ,"t =     
det]m9ation ( eligible designat$        
b5efici>y ,! det]m9ation ( :e!r a       
designat$ b5efici>y is an eligible      
designat$ b5efici>y %all be made z ( !  
date ( dea? ( ! employee4  4  7#c7      
,effective dates  7,a7 ,9 g5]al ,except 
z provid$ 9 ?is p>agraph & p>agraphs    
7#d7 & 7#e71 ! am5dm5ts made by ?is     
subsection %all apply to di/ributions ) 
respect to employees :o die aft]        
,decemb] #ca1 #bjai4  7,b7 ,collective  
b>ga9+ exception ,9 ! case ( a plan     
ma9ta9$ pursuant to "o or m collective  

b>ga9+ agreem5ts betwe5 employee        
repres5tatives & "o or m employ]s       
ratifi$ be=e ! date ( enactm5t ( ?is    
,act1 ! am5dm5ts made by ?is subsection 
%all apply to di/ributions ) respect to 
employees :o die 9 cal5d> ye>s beg9n+   
aft] ! e>li] (--  7i7 ! lat] (-- 7,i7 ! 
date on :i* ! la/ ( su* collective      
b>ga9+ agreem5ts t]m9ates 7det]m9$ )\t  
reg>d to any ext5sion !re( agre$ to on  
or aft] ! date ( ! enactm5t ( ?is ,act72
 or  7,,ii7 ,decemb] #ca1 #bjai2 or     
7ii7 ,decemb] #ca1 #bjba4  ,= purposes (
 clause 7i77,i71 any plan am5dm5t made  
pursuant to a collective b>ga9+ agreem5t
 relat+ to ! plan :i* am5ds ! plan      
solely to con=m to any requirem5t add$  
by ?is section %all n be treat$ z a     
t]m9ation ( su* collective b>ga9+       
agreem5t4  7,c7 ,gov]nm5tal plans ,9 !  
case ( a gov]nm5tal plan 7z def9$ 9     
section #dad7;d7 ( ! ,int]nal ,rev5ue   
,code ( #aihf71 subp>agraph 7,a7 %all be
 appli$ by sub/itut+ ,decemb] #ca1 #bjba
 = ,decemb] #ca1 #bjai4  7#d7 ,exception

 = c]ta9 exi/+ annuity contracts  7,a7  
,9 g5]al ,! am5dm5ts made by ?is        
subsection %all n apply to a qualifi$   
annuity :i* is a b9d+ annuity contract 9
 effect on ! date ( enactm5t ( ?is ,act 
& at all times !reaft]4  7,b7 ,qualifi$ 
annuity ,= purposes ( ?is p>agraph1 !   
t]m qualifi$ annuity means1 ) respect to
 an employee1 an annuity-- 7i7 :i* is a 
comm]cial annuity 7z def9$ 9 section    
#cdje7;e77#f7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf72  7ii7 "u :i* ! annuity       
paym5ts are made ov] ! life ( ! employee
 or ov] ! jo9t lives ( su* employee & a 
designat$ b5efici>y 7or ov] a p]iod n   
ext5d+ beyond ! life expectancy ( su*   
employee or ! jo9t life expectancy ( su*
 employee & a designat$ b5efici>y7 9    
accordance ) ! regulations describ$ 9   
section #dja7;a77#i77;,a77ii7 ( su*     
,code 7z 9 effect be=e su* am5dm5ts7 &  
:i* meets ! o!r requirem5ts ( section   
#dja7;a77#i7 ( su* ,code 7z s 9 effect7 
) respect to su* paym5ts2 &  7iii7 )    
respect to :i*-- 7,i7 annuity paym5ts to

 ! employee h begun be=e ! date (       
enactm5t ( ?is ,act1 & ! employee has   
made an irrevocable election be=e su*   
date z to ! me?od & am\nt ( ! annuity   
paym5ts to ! employee or any designat$  
b5efici>ies2 or  7,,ii7 if subclause    
7,i7 does n apply1 ! employee has made  
an irrevocable election be=e ! date (   
enactm5t ( ?is ,act z to ! me?od & am\nt
 ( ! annuity paym5ts to ! employee or   
any designat$ b5efici>ies4  7#e7        
,exception = c]ta9 b5efici>ies  7,a7 ,9 
g5]al ,if an employee dies be=e !       
effective date1 !n1 9 apply+ ! am5dm5ts 
made by ?is subsection to su* employee's
 designat$ b5efici>y :o dies aft] su*   
date--  7i7 su* am5dm5ts %all apply to  
any b5efici>y ( su* designat$ b5efici>y2
 &  7ii7 ! designat$ b5efici>y %all be  
treat$ z an eligible designat$ b5efici>y
 = purposes ( apply+ section            
#dja7;a77#i77;,h77ii7 ( ! ,int]nal      
,rev5ue ,code ( #aihf 7z 9 effect aft]  
su* am5dm5ts74  7,b7 ,effective date ,= 
purposes ( ?is p>agraph1 ! t]m effective

 date means ! fir/ day ( ! fir/ cal5d>  
ye> to :i* ! am5dm5ts made by ?is       
subsection apply to a plan ) respect to 
employees dy+ on or aft] su* date4  7b7 
,provisions relat+ to plan am5dm5ts     
7#a7 ,9 g5]al ,if ?is subsection applies
 to any plan am5dm5t-- 7,a7 su* plan    
%all be treat$ z be+ op]at$ 9 accordance
 ) ! t]ms ( ! plan dur+ ! p]iod describ$
 9 p>agraph 7#b77;,b77i72 &  7,b7 except
 z provid$ by ! ,secret>y ( ! ,treasury1
 su* plan %all n fail to meet !         
requirem5ts ( section #daa7;d77#f7 ( !  
,int]nal ,rev5ue ,code ( #aihf & section
 #bjd7;g7 ( ! ,employee ,retirem5t      
,income ,security ,act ( #aigd by reason
 ( su* am5dm5t4  7#b7 ,am5dm5ts to :i*  
subsection applies  7,a7 ,9 g5]al ,?is  
subsection %all apply to any am5dm5t to 
any plan or :i* is made-- 7i7 pursuant  
to any am5dm5t made by ?is section or   
pursuant to any regulation issu$ by !   
,secret>y ( ! ,treasury "u ?is section  
or su* am5dm5ts2 &  7ii7 on or be=e !   
la/ day ( ! fir/ plan ye> beg9n+ aft]   

,decemb] #ca1 #bjba1 or su* lat] date z 
! ,secret>y ( ! ,treasury may prescribe4
  ,9 ! case ( a gov]nm5tal or           
collectively b>ga9$ plan to :i*         
subp>agraph 7,b7 or 7,c7 ( subsection   
7a77#d7 applies1 clause 7ii7 %all be    
appli$ by sub/itut+ ! date :i* is #b    
ye>s aft] ! date o!rwise appli$ "u su*  
clause4  7,b7 ,conditions ,?is          
subsection %all n apply to any am5dm5t  
unless-- 7i7 dur+ ! p]iod--  7,i7 beg9n+
 on ! date ! legislative or regulatory  
am5dm5t describ$ 9 p>agraph 7#a77;,a7   
takes effect 7or 9 ! case ( a plan      
am5dm5t n requir$ by su* legislative or 
regulatory am5dm5t1 ! effective date    
specifi$ by ! plan72 &  7,,ii7 end+ on !
 date describ$ 9 subp>agraph 7,a77ii7   
7or1 if e>li]1 ! date ! plan am5dm5t is 
adopt$71  ! plan is op]at$ z if su* plan
 am5dm5t 7 9 effect2 &  7ii7 su* plan   
am5dm5t applies retroactively = su*     
p]iod4  #aj4 ,increase 9 p5alty =       
failure to file  7a7 ,9 g5]al ,! second 
s5t5ce ( section #ffea7;a7 ( ! ,int]nal 

,rev5ue ,code ( #aihf1 z am5d$ by !     
,taxpay] ,fir/ ,act1 is am5d$ by /rik+  
#ccj & ins]t+ #dce4  7b7 ,inflation     
adju/m5t ,section #ffea7;j77#a7 ( su*   
,code1 z am5d$ by su* ,act1 is am5d$ by 
/rik+ #ccj & ins]t+ #dce4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to returns ! due date
 = :i* 7includ+ ext5sions7 is aft]      
,decemb] #ca1 #bjai4  #aa4 ,increas$    
p5alties = failure to file retirem5t    
plan returns  7a7 ,9 g5]al ,subsection  
7e7 ( section #ffeb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$-- 7#a7 by /rik+ 
#be & ins]t+ #bej2 &  7#b7 by /rik+     
#ae1jjj & ins]t+ #aej1jjj4  7b7 ,annual 
regi/ration /atem5t & notification (    
*anges ,subsection 7d7 ( section #ffeb (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$--  7#a7 by /rik+ #a bo? places x  
appe>s 9 p>agraphs 7#a7 & 7#b7 & ins]t+ 
#aj2  7#b7 by /rik+ #e1jjj 9 p>agraph   
7#a7 & ins]t+ #ej1jjj2 &  7#c7 by /rik+ 
#a1jjj 9 p>agraph 7#b7 & ins]t+ #aj1jjj4
  7c7 ,failure ,to provide notice       

,subsection 7h7 ( section #ffeb ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ #aj & ins]t+     
#ajj2 &  7#b7 by /rik+ #e1jjj & ins]t+  
#ej1jjj4  7d7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to returns1 /atem5ts1 & notifications   
requir$ to be fil$1 & notices requir$ to
 be provid$1 aft] ,decemb] #ca1 #bjai4  
#ab4 ,increase in=mation %>+ to adm9i/] 
excise taxes  7a7 ,9 g5]al ,section     
#fajc7o7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#c7 ,taxes impos$ by   
section #ddha ,returns & return         
in=mation ) respect to taxes impos$ by  
section #ddha %all be op5 to inspection 
by or disclosure to (fic]s & employees (
 ,unit$ ,/ates ,cu/oms & ,bord]         
,protection ( ! ,dep>tm5t ( ,homel&     
,security ^: (ficial duties require su* 
inspection or disclosure = purposes (   
adm9i/]+ su* section4  4  7b7 ,con=m+   
am5dm5ts ,p>agraph 7#d7 ( section       
#fajc7p7 ( ! ,int]nal ,rev5ue ,code (   

#aihf is am5d$ by /rik+ or 7o77#a77;,a7 
ea* place x appe>s & ins]t+ 1           
7o77#a77;,a71 or 7o77#c74  ,pass$ !     
,h\se ( ,repres5tatives ,july #bd1      
#bjai4;,*]yl ,l4 ,johnson1,cl]k