,,ii #aafth ,,congress #b;d ,session ,s4 #ejde ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ag1 #bjbj,mr4 ,grassley 7for himself and ,mr4 ,alexander7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf and the ,employee ,retirement ,income ,security ,act of #aigd to reform the treatment of multiemployer plans1 to ensure the ability of the ,pension ,benefit ,guaranty ,corporation to provide guaranteed benefits of retirees1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,,title ,i--,restructuring pension insurance for multiemployer defined benefit pension plans,subtitle ,a--,special partitions of eligible multiemployer plans,sec4 #aja4 ,special partitions of eligible multiemployer plans4,subtitle ,b--,,pbgc reforms,sec4 #aaa4 ,guarantee rate increase for plans receiving financial assistance4,sec4 #aab4 ,amendment to definition of insolvency4,sec4 #aac4 ,termination of multiemployer plans4,sec4 #aad4 ,benefits under certain terminated plans4,subtitle ,c--,pension insurance modeling,sec4 #aba4 ,pension insurance modeling4,,title ,,ii--,funding rules1 withdrawal liability1 and other reforms,subtitle ,a--,minimum funding standard for multiemployer plans,sec4 #bja4 ,valuation of plan liabilities4,subtitle ,b--,additional funding rules for multiemployer plans,part ,i--,plan status amendments,sec4 #baa4 ,amendments to ,internal ,revenue ,code of #aihf4,sec4 #bab4 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd4,sec4 #bac4 ,transition rules4,part ,,ii--,provisions relating to plan mergers,sec4 #bba4 ,provisions relating to plan mergers and consolidations4,sec4 #bbb4 ,clarification of ,,pbgc financial assistance for plan mergers and partitions4,sec4 #bbc4 ,restoration not required for certain mergers4,part ,,iii--,withdrawal liability reform,sec4 #bca4 ,withdrawal liability reform4,,title ,,iii--,plan governance1 disclosure1 and other reforms for multiemployer defined benefit pension plans,subtitle ,a--,plan governance and operations for multiemployer plans,sec4 #cja4 ,independent trustees4,sec4 #cjb4 ,investigatory authority4,sec4 #cjc4 ,conditions on financial assistance4,sec4 #cjd4 ,excise tax on excess compensation of covered employees of partitioned multiemployer plans4,subtitle ,b--,reportable events for multiemployer plans,sec4 #caa4 ,reportable events4,subtitle ,c--,funding notices to participants in multiemployer plans,sec4 #cba4 ,improved multiemployer plan disclosure4,sec4 #cbb4 ,penalties for failure to provide notices4,subtitle ,d--,consistency of criminal penalties,sec4 #cca4 ,consistency of criminal penalties4,,title ,,iv--,other multiemployer plan reforms,sec4 #dja4 ,clarification of fiduciary duty of retiree representative who is a trustee4,sec4 #djb4 ,safe harbors4,sec4 #djc4 ,clarification of notice and comment process4,sec4 #djd4 ,protection of participants receiving disability benefits4,sec4 #dje4 ,model notice4,,title ,v--,alternative plan structures,sec4 #eja4 ,composite plans4,sec4 #ejb4 ,application of certain requirements to composite plans4,sec4 #ejc4 ,treatment of composite plans under title ,,iv4,sec4 #ejd4 ,conforming changes4,sec4 #eje4 ,effective date4,,title ,,vi--,financial provisions,sec4 #fja4 ,additional premiums4,sec4 #fjb4 ,funding4,sec4 #fjc4 ,composite plan transition fee4 ,i ,restructuring pension insurance for multiemployer defined benefit pension plans ,a ,special partitions of eligible multiemployer plans #aja4 ,special partitions of eligible multiemployer plans 7a7 ,in general ,title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acja et seq47 is amended by inserting after section #dbcc the following3 #dbcc;,a4 ,special partitions of eligible multiemployer plans 7a7 ,in general 7#a7 ,requirement to order partition ,upon the application by the plan sponsor of an eligible multiemployer plan described in subsection 7b7 for a partition of the plan1 the corporation shall order a partition of the plan in accordance with this section1 provided the other requirements in this section are met4 ,the corporation shall make a determination regarding the application not later than #aej days after the date such application was filed 7or1 if later1 the date such application was completed7 in accordance with regulations that shall be issued by the corporation under subsection 7h74 7#b7 ,notification of participants ,not later than #cj days after submitting an application for partition of a plan under paragraph 7#a71 the plan sponsor of the plan shall notify the participants and beneficiaries of such application1 in the form and manner prescribed by the corporation4 7#c7 ,implementation of transfer ,the corporation shall implement the partition order issued under this section not later than #fj days after the completion of the corporation's determination under paragraph 7#a74 7#d7 ,filing date of application ,partitions under this section shall apply only with respect to any eligible multiemployer plan whose plan sponsor files an application that is determined by the corporation to be complete pursuant to regulations issued by the corporation under subsection 7h77#a7 and that is filed by the later of the time specified in such regulations or #a year after the corporation issues such regulations4 7b7 ,eligible multiemployer plan ,for purposes of this section-- 7#a7 ,in general ,the term eligible multiemployer plan means a multiemployer plan that meets any of the following conditions3 7,a7 ,the plan became insolvent 7as described in section #dbde7;b71 as in effect the day before the date of enactment of this section7 on or after ,december #af1 #bjad1 and prior to the date of enactment of this section and has not terminated4 7,b7 ,the plan-- 7i7 7,i7 was certified1 in the most recent annual certification filed pursuant to section #cje7;b77#c7 7as in effect on the day before the date of enactment of this section7 before the date of enactment of this section1 to be in critical and declining status 7as defined in section #cje7;b77#f71 as so in effect71 and has not terminated as of such date2 7,,ii7 implemented a suspension of benefits under section #cje7;e77#i7 7as in effect on the day before the date of enactment of this section7 prior to the date of enactment of this section2 7,,iii7 7aa7 was certified1 in the most recent annual certification filed pursuant to section #cje7;b77#c7 7as so in effect7 before the date of enactment of this section1 to be in critical status 7as defined in section #cje7;b77#b71 as so in effect71 and has not terminated as of such date2 7bb7 has a funded percentage that is less than #dj percent on a current liability basis1 based on the most recent ,form #eejj1 ,schedule ,,mb1 line #a;b7#a7 for current value of assets and line #a;d7#b77;a7 for current liability1 filed before the date of enactment of this section2 and 7cc7 has an active to inactive participant ratio that is below #dj percent as of the most recent ,form #eejj filed before the date of enactment of this section2 or 7,,iv7 7aa7 was certified1 in the most recent annual certification filed pursuant to section #cje7;b77#c7 7as so in effect7 before the date of enactment of this section1 to be in critical status 7as defined in section #cje7;b77#b71 as so in effect7 and has not terminated before such date1 7bb7 has an active to total participant ratio that is below #bj percent as of the most recent ,form #eejj filed before the date of enactment of the section2 and 7cc7 has more than #ajj1jjj participants as of the most recent ,form #eejj filed before the date of enactment of the section2 and 7ii7 is not the plan described in section #igja7;a77#c7 of the ,internal ,revenue ,code of #aihf1 determined without regard to the limitation on participation to individuals who retired in #aigf and thereafter4 7#b7 ,eligible plans required to file for partition 7,a7 ,in general ,an eligible multiemployer plan 7other than a plan eligible under paragraph 7#a77;,b77i77,,ii77 shall file with the corporation for partition under this section4 ,if an eligible plan required under the preceding sentence to file for partition does not so file in a timely manner1 the plan is subject to termination under section #djdb4 7,b7 ,exception ,if a plan is reasonably determined to be ineligible for future adjustments under subsection 7j77#c77;,c77iii7-- 7i7 subparagraph 7,a7 shall not apply to such plan1 and 7ii7 such plan may withdraw the partition application 7or1 as provided by the corporation in regulations1 not submit such application at all74 7c7 ,conditions for partition 7#a7 ,rate of accruals 7,a7 ,in general ,as a condition of any partition under this section1 the rate of future accruals1 during the period beginning on the date of the partition order and ending #ae years after the effective date of the partition1 shall not exceed the lesser of-- 7i7 a monthly benefit 7payable as a single life annuity commencing at the participant's normal retirement age7 equal or equivalent to #a percent of the annual contributions required to be made with respect to a participant as of the first day of the first plan year that begins after the date of enactment of this section2 or 7ii7 the accrual rate under the plan on such first day4 7,b7 ,determination of equivalent rate ,the plan sponsor may determine the equivalent rate of future accruals based on the standard or average contribution base units which the plan sponsor determines to be representative for active participants and such other factors as the plan sponsor determines to be relevant4 ,such determinations by the plan sponsor may be made on the basis of individual active participants1 groups of active participants1 or all active participants in total4 7,c7 ,special rule for future accruals ,to the extent that the rate of future accruals exceeds the limitation determined under this paragraph1 the plan sponsor shall adjust the rate of future accruals in accordance with this paragraph effective as of the date of the partition order4 7#b7 ,elimination of adjustable benefits ,as a condition of any partition under this section1 the plan sponsor of an eligible multiemployer plan shall eliminate all adjustable benefits in the nature of an early retirement subsidy 7including a subsidized early retirement actuarial reduction factor7 for all participants not in pay status as of the date of the partition application4 ,nothing in this paragraph shall affect the right of a participant to receive an unsubsidized early retirement benefit4 7d7 ,successor plans and original plans 7#a7 ,in general ,the plan created by the partition order is a successor plan to which section #djbb;,a applies4 7#b7 ,plan sponsor and plan administrator ,the plan sponsor of an eligible multiemployer plan prior to partition and the administrator of such plan shall be the plan sponsor and the administrator1 respectively1 of the original plan and the successor plan created by the partition order4 7#c7 ,original plan ,the remaining plan after benefits have been transferred to the successor plan pursuant to the partition order is the original plan4 ,benefit payments made by the successor plan shall not constitute a reduction in benefits with respect to the original plan4 7e7 ,financial assistance to successor plans from the corporation 7#a7 ,in general ,upon approval of an application filed pursuant to subsection 7i71 the corporation shall provide financial assistance to each successor plan of an eligible multiemployer plan4 7#b7 ,nonapplicability of repayment rule ,financial assistance provided to a successor plan pursuant to this subsection shall not be subject to the requirements of section #dbfa7;b77#b71 except that the corporation may condition receipt of financial assistance under this subsection on reasonable terms consistent with regulations prescribed by the corporation to prevent abuse of the multiemployer plan program or prevent unreasonable risk of loss to the corporation4 7f7 ,payment requirements of original plan ,for each participant or beneficiary of the plan whose benefit or portion thereof was transferred to the successor plan1 the original plan shall pay a monthly benefit to such participant or beneficiary for each month in which such benefit is in pay status following the effective date of such partition in an amount equal to the excess of-- 7#a7 the monthly benefit that would be paid to the participant or beneficiary under the terms of the original plan had the transfer of benefits not occurred 7taking into account any applicable benefit reductions or plan amendments following the effective date of the partition72 over 7#b7 the monthly benefit for such participant or beneficiary that is paid by the successor plan4 7g7 ,transfer of benefits 7#a7 ,in general ,a partition order under subsection 7a7 shall provide for a transfer of benefits from the original plan to the successor plan in the amount necessary for the original plan to be projected to remain solvent indefinitely1 as defined in section #a4dcb7;e77#i7-a7;d77#e77;ii7 of title #bf1 ,code of ,federal ,regulations 7excluding subparagraph 7,a77#b771 as in effect on the date on which such regulations were issued1 using actuarial and other assumptions to be promulgated by the corporation in the regulations described in subsection 7h77#d74 ,such transfer amounts shall be determined without respect to the amount guaranteed under section #djbb;,a4 7#b7 ,considerations 7,a7 ,in general ,in determining the transfer amount under paragraph 7#a71 the corporation shall take into account all obligations of the original plan1 including the payment of benefits required under subsection 7f7 in excess of the amount paid by the successor plan and all plan expenses and premium amounts4 7,b7 ,projection of assets and liabilities ,the amount of the transfer of benefits shall be based on a projection of plan assets and liabilities to the projected partition date1 as specified in the partition application1 and-- 7i7 the projection of plan assets shall be based on the fair market value of plan assets as of the end of the last plan year preceding the date of the application1 with appropriate adjustments for actual or anticipated plan experience through the projected partition date2 and 7ii7 the projection of plan liabilities shall be based on the participant data used in the most recently completed actuarial valuation4 7#c7 ,special rule for insolvent plans ,with respect to an insolvent plan described in subsection 7b77#a77;,a71 the corporation shall provide financial assistance to the original plan1 as needed for the plan to pay to each participant and beneficiary in the successor plan the excess1 if any1 of-- 7,a7 the monthly benefit that would be paid to the participant or beneficiary under the terms of the original plan1 prior to insolvency1 had the transfer of benefits not occurred 7taking into account any applicable benefit reductions or plan amendments following the effective date of the partition72 over 7,b7 the monthly benefit for such participant or beneficiary that is paid by the successor plan4 7h7 ,regulations 7#a7 ,in general ,the corporation shall issue regulations on the requirements for partition applications not later than #ahj days after the date of enactment of this section4 ,by regulation1 the corporation may assign eligible multiemployer plans into groups1 based on plan size 7prioritizing larger plans71 projected date of plan insolvency 7prioritizing plans expected to become insolvent within #e years71 or such other factors as the corporation deems appropriate1 for determining when an application for partition under this section may be filed4 ,any regulations issued under this section shall be interim final or final regulations4 7#b7 ,effect of no regulation ,if the corporation does not issue regulations within #ahj days after the date of enactment of this section1 any applications for partition under this section filed after the date that is #ahj days after such date of enactment 7and prior to the date regulations are issued7 shall be deemed to be approved4 7#c7 ,rules for determining participants and beneficiaries ,the regulations under this subsection shall include rules for determining which participants and beneficiaries are included in the transfer of benefits4 7#d7 ,actuarial assumptions ,the regulations under this subsection shall prescribe acceptable actuarial assumptions1 for purposes of an application1 relating to the following3 7,a7 ,future investment returns which must be consistent with the applicable discount rate under section #cjd1 except that-- 7i7 in no case shall the assumption for future returns be less than #e4e percent for purposes of determining the initial partition amount2 and 7ii7 in no case1 while the partition amount is being determined or while the partition is in effect1 shall the assumption used for determining adjustments under subsection 7j7 be less than the lesser of-- 7,i7 the rate equal to the #bd-month average of the third segment rate 7as defined in section #cjc7;h77#b77;,c77iii771 as of the date the determination is made1 without regard to section #cjc7;h77#b77;,c77iv71 increased by #b percent2 or 7,,ii7 #e4e percent4 7,b7 ,future contribution base units4 7,c7 ,future contribution rate increases1 taking into account the adopted rehabilitation plan4 7,d7 ,future withdrawal liability payments4 7,e7 ,future administrative expenses4 7,f7 ,mortality4 7,g7 ,any other assumptions deemed by the corporation to be material4 7#e7 ,rules relating to assumptions 7,a7 ,information required ,for purposes of paragraph 7#d71 when prescribing acceptable actuarial assumptions1 the corporation shall not require a plan sponsor to obtain data or other information that a plan sponsor should not reasonably be expected to have in its possession1 unless it can be obtained with reasonable effort and expense4 7,b7 ,economic activity assumption ,for purposes of paragraph 7#d77;,b71 an assumption related to future contribution base units shall be considered reasonable and appropriate for purposes of the application under this section1 provided that-- 7i7 if the recent experience of the plan has been declining contribution base units1 the plan actuary may assume future contribution base units will continue to decline at the same annualized trend as over the #e immediately preceding plan years unless such assumption is unreasonable based on criteria which may be prescribed by the corporation by regulation1 and 7ii7 if the recent experience of the plan has been increasing1 or neither increasing nor decreasing1 contribution base units1 the plan actuary may assume future contribution base units will remain unchanged indefinitely1 unless such assumption is unreasonable based on criteria the corporation may prescribe4 7#f7 ,determination of benefits guarantees ,the regulations under this subsection shall include rules for determining the amounts of benefits guaranteed under section #djbb;,a1 including acceptable methods to approximate credited service for participants and beneficiaries in pay status where records cannot reasonably be obtained by the plan administrator4 7i7 ,partition applications 7#a7 ,in general ,an application for partition under this section submitted by a plan sponsor shall be filed electronically and contain the required information set forth in regulations promulgated by the corporation4 7#b7 ,approval standards ,the corporation shall approve a partition application if the applying plan meets the requirements for a partition under this section4 7#c7 ,evaluation of initial transfer ,in reviewing an application under this section1 the plan shall propose the initial amount of the transfer of benefits under the partition order that is required under subsection 7g77#a7 and the corporation shall review and modify the amount1 if applicable1 pursuant to its regulations4 7#d7 ,determinations by the corporation 7,a7 ,determination of ineligibility ,if the corporation determines the plan to be ineligible under subsection 7b7 for a partition under this section1 the corporation shall notify the plan sponsor in writing of such determination not later than #cj days after the application is filed4 ,such notice shall specify the reasons the plan is ineligible for a special partition4 ,the applicant plan will have a period of at least #fj days1 or longer if specified by the ,corporation through regulations1 to modify its application1 which shall be subject to expedited review by the corporation and1 for purposes of satisfying the #a-year filing requirement for special partition1 will relate back to the date the application was initially filed4 7,b7 ,incomplete applications ,if the corporation determines the application by the plan sponsor lacks information necessary for the corporation to approve or deny the application1 the corporation shall notify the plan sponsor in writing1 detailing which components are missing1 not later than #cj days after the application is filed4 ,nothing in the preceding sentence shall prevent the corporation from asking the plan sponsor at a later date for additional information necessary to determine the partition amount4 7,c7 ,factual submissions by plan sponsor ,the factual submissions made by a plan sponsor in a partition application1 including participant data and benefit calculations1 shall be presumed to be correct1 unless clearly erroneous4 7j7 ,post-,partition adjustments 7#a7 ,process for adjustments 7,a7 ,in general ,after benefits have been transferred under the partition order1 the corporation shall1 at least every third year thereafter1 adjust the transfer of benefits1 as necessary to enable the original plan to be projected to remain solvent indefinitely1 consistent with limitations on guaranteed benefits 7if applicable under paragraph 7#c77;,c774 ,the adjustments shall be made based on such procedures as the corporation shall prescribe by regulation4 7,b7 ,plans projected to be insolvent ,if the original plan is not projected to be solvent #cj years after any adjustment review date 7without regard to whether or not an adjustment takes place in connection with such date71 taking into account the adjustments permitted by this paragraph1 such plan shall electronically file a report with the corporation1 as the corporation shall require by regulation4 ,if the plan subsequently reports for #c consecutive years for which an adjustment review is conducted that the plan is not projected to be solvent #cj years after the date of each such adjustment review1 the plan shall be terminated4 7#b7 ,basis for adjustment ,the adjustment shall be based solely on1 as applicable1 updated participant data1 calculations of guaranteed benefits for participants and beneficiaries covered under the successor plan1 contribution experience1 current actuarial assumptions 7if changed since the initial transfer of benefits71 and changes in the market value of the original plan's assets4 7#c7 ,limitations on adjustment 7,a7 ,in general ,the corporation shall not adjust under paragraph 7#a7 the transfer of benefits to provide additional financial assistance if the corporation determines that the original plan or the bargaining parties committed an abuse of the multiemployer program with respect to the original plan or otherwise unreasonably took actions 7or avoided taking actions7 with the result that there is an increased risk of loss to the corporation with respect to the successor plan or the original plan4 7,b7 ,end of adjustment authority ,no adjustments under paragraph 7#a7 to the transfer of benefits shall be allowed with respect to any plan year beginning #cj or more years after the date of the partition4 7,c7 ,aggregate limits ,if the initial transfer of benefits from the plan under subsection 7g7-- 7i7 was less than #ajj percent of the amount of benefits under the plan guaranteed under section #djbb;,a for each participant1 any adjustment under paragraph 7#a7 shall not result in a benefit for any participant in the successor plan in excess of #ajj percent of the participant's guaranteed benefit1 determined as of the date of the initial transfer2 7ii7 was equal to or greater than #ajj percent of the amount of benefits so guaranteed1 any adjustment under paragraph 7#a7 shall not result in a benefit for any participant in the successor plan in excess of the amount of the participant's benefit subject to the initial transfer2 and 7iii7 was less than #e percent of the amount of benefits so guaranteed1 there shall be no adjustment under paragraph 7#a74 7#d7 ,terminated and insolvent plans ,with respect to an original plan partitioned under this section that subsequently is terminated or becomes insolvent1 the benefits transferred under the partition order shall revert to the original plan1 the partition shall be reversed1 and financial assistance provided pursuant to the partition order shall cease4 7#e7 ,regulations ,the corporation shall promulgate regulations describing the process and requirements for reporting and the circumstances under which plans will be terminated in accordance with the provisions of section #djda;,a pursuant to this subsection4 7k7 ,plans that implemented suspension of benefits 7#a7 ,in general ,an eligible multiemployer plan described in subsection 7b77#a77;,b77i77,,ii7 may be approved for a partition under this section only if it unwinds the suspension1 and1 if applicable1 the previous partition described in such subsection in accordance with regulations to be issued by the corporation1 in consultation with the ,secretary of the ,treasury4 ,the unwinding of a suspension or partition described in such subsection must be contingent upon the corporation's approval of the application for partition under this section4 7#b7 ,timing of unwinding of suspension of benefits ,in the case of a partition described in paragraph 7#a71 the suspension of benefits shall be unwound retroactively4 ,benefits shall be restored to pre-suspension levels as of the effective date of the partition under this section and participants who are receiving benefits on the date of enactment of this section shall1 beginning not later than #ahj days after the approval of a partition order under this section1 receive a special payment1 payable over a period not to exceed #b years1 equal to the amount of benefits previously suspended as prescribed in regulations4 ,such plans are subject to the requirements of subsection 7c74 7l7 ,fiduciary protection ,plan participants and beneficiaries shall not have a claim under section #dji or section #ejb of this ,act against plan fiduciaries with respect to an application for partition assistance made in good faith or the allocation of benefit liabilities between the successor plan and the original plan4 7m7 ,effect of partition on withdrawal liability 7#a7 ,in general ,a partition order under this section is taken into account in determining withdrawal liability under section #dbja of an employer that contributes to the original plan1 provided that the employer remains a contributing employer to the original plan 7and in compliance with any applicable funding improvement or rehabilitation plan7 for a period of #ae years following the effective date of the liability transfer4 7#b7 ,withdrawals after less than #ae years 7,a7 ,in general ,if an employer completely withdraws or partially withdraws from a plan that was partitioned under this section at any time within the #ae-year period described in paragraph 7#a71 the transfer of benefits under subsection 7g7 shall not be taken into account in computing the employer's complete or partial withdrawal liability1 and the amount of the annual withdrawal liability payment amount otherwise determined shall be increased by #aj percent4 7,b7 ,exception ,subparagraph 7,a7 shall not apply-- 7i7 if the complete or partial withdrawal is due to a decertification1 a change in bargaining representatives1 disclaimer of interest1 or because of an event described in section #dbah2 or 7ii7 in the case of a partial withdrawal due to a bargaining unit or facility take-out if the contribution base units for the plan year immediately following the year of the partial withdrawal are at least #ig percent of the contribution base units for the plan year immediately preceding the year of the partial withdrawal4 7#c7 ,exception ,paragraphs 7#a7 and 7#b7 shall not apply to an employer that first had an obligation to contribute to the plan partitioned under this section after the date of enactment of this section4 7n7 ,restrictions on benefit improvements 7#a7 ,increase in plan liabilities 7,a7 ,in general ,if the plan sponsor adopts a plan amendment that increases plan liabilities 7due to any increase in benefits1 any change in the accrual of benefits1 or any change in the rate at which benefits become nonforfeitable7 that takes effect after the effective date of the partition1 the original plan shall make payments to the corporation for each year during the #bj-year period following the effective date of the benefit increase4 ,for purposes of this paragraph1 an increase in benefits due to an increase in the contribution rate or compensation shall be considered a prohibited increase in benefits4 7,b7 ,exception for certain accruals ,subparagraph 7,a7 shall not apply to any change in future accruals after the end of the #ae-year period during which such accruals are limited under subsection 7c74 7#b7 ,amount payable to corporation ,the amount paid by the original plan to the corporation under paragraph 7#a7 each year shall be equal to the lesser of-- 7,a7 the total value of the increase in benefit payments for the year that is attributable to the benefit improvement2 or 7,b7 the total benefit payments from the successor plan for such year4 7#c7 ,timing of payment ,payments under paragraph 7#b7 shall be made by the original plan at the time of1 and in addition to1 any premium imposed by the corporation on the plan4 7#d7 ,,pbgc ,authority ,the corporation is authorized to bring an action against the original plan to prevent or correct any and all actions by plan sponsors1 a principal purpose of which is to evade or avoid payments due to the corporation under paragraph 7#b71 or that may have the effect of evading or avoiding such payments4 ,payments under paragraph 7#b7 shall be determined without regard to such actions by plan sponsors4 7#e7 ,exception for certain changes ,the requirements of this subsection do not apply to an increase or change in benefits that is required by law or that is a de minimis change1 as determined by the corporation4 7o7 ,post-,partition disclosures ,not later than #ij days after the first day of each plan year beginning after the effective date of a partition under this section1 the plan sponsor of the original plan shall electronically file with the corporation a report including the following information3 7#a7 ,the estimated funded percentage 7as defined in section #cje7k77#b77 as of the first day of such plan year1 and the underlying actuarial value of assets and liabilities taken into account in determining such percentage4 7#b7 ,the estimated amount of all investment returns for the original plan during the preceding plan year4 7#c7 ,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 year4 7#d7 ,the total value of all contributions made by employers and employees during the plan year preceding such plan year4 7#e7 ,the total value of all benefits paid during the plan year preceding such plan year4 7#f7 ,cash flow projections for such plan year and the #bi succeeding plan years1 and the assumptions used in making such projections4 7#g7 ,funding standard account projections for such plan year and the #i succeeding plan years1 and the assumptions used in making such projections4 7#h7 ,any significant reduction in the number of active participants during the plan year preceding such plan year1 and the reason for such reduction4 7#i7 ,a list of employers that withdrew from the plan in the plan year preceding such plan year1 and the resulting reduction in contributions4 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 liability4 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 conditions of the partition assistance4 7#ab7 ,details regarding any funding improvement plan or rehabilitation plan and updates to such plan4 7#ac7 ,the number of participants and beneficiaries 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 beneficiaries4 7#ad7 ,for-- 7,a7 the first plan year after the effective date of the partition1 a list of all employers that contributed to the plan during the plan year2 and 7,b7 subsequent plan years1 changes to the list of contributing employers4 7#ae7 ,the information contained on the most recent annual return under section #fjeh of the ,internal ,revenue ,code of #aihf and actuarial report under section #fjei of such ,code of the plan4 7#af7 ,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 financial reports1 and copies of the portions of collective bargaining agreements relating to plan contributions1 funding coverage1 or benefits1 and such other information as the corporation may reasonably require4 7#ag7 ,a list of the employers that contributed more than #e percent of total contributions to the plan during the preceding plan year1 and the amount contributed by each such employer4 ,any information or documentary material submitted to the corporation pursuant to this subsection that could identify individual employers1 if clearly designated by the person making the submission as confidential 7on each page in the case of a document1 and in the file name in the case of a digital file71 shall be exempt from disclosure under section #eeb of title #e1 ,united ,states ,code1 and no such information or documentary material may be made public except as may be relevant to any administrative or judicial action or proceeding1 including an informal rulemaking4 7p7 ,restrictions on contribution decreases 7#a7 ,in general ,subject to paragraph 7#b71 except in any plan year in which the plan is certified by the plan actuary as in unrestricted status pursuant to section #cje7;b77#a77;,b71 the plan sponsor of an original plan may not accept a collective bargaining agreement with respect to such original plan that includes a reduction in employer contribution rates4 7#b7 ,exception ,under a process to be promulgated by regulation by the corporation1 a plan sponsor of an original plan may petition the corporation for the authority to approve a collective bargaining agreement that contemplates a reduction in employer contribution rates4 ,such regulation shall include a requirement that a plan petitioning for such authority demonstrate that its existing contribution rates are higher than contribution rates paid on behalf of other workers covered by collective bargaining agreements in the same industry in nearby localities4 ,the corporation shall approve the petition if the plan sponsor demonstrates that the reduction in contribution rates improves the long-term funding or solvency of the plan1 and does not increase the corporation's expected loss with respect to the plan4 7q7 ,effect on accumulated funding deficiency ,any accumulated funding deficiency 7as defined in section #cjd7;a77 of a plan shall be reduced to zero as of the first day of the plan year during which the partition under this section is effective4 7r7 ,coordination of reporting and disclosure requirements ,the corporation1 the ,secretary1 and the ,secretary of the ,treasury may1 individually or collectively1 promulgate regulations to reduce reporting and disclosure obligations for successor plans1 including coordinating with reporting and disclosure by original plans4 4 7b7 ,conforming amendment ,section #dbcc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac7 is amended by adding at the end the following3 7g7 ,this section shall not apply to an eligible multiemployer plan described in section #dbcc;,a7b7 that receives a special partition under that section4 4 7c7 ,clerical amendment ,the table of contents in section #a of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is amended by inserting after the item relating to section #dbcc the following3 #dbcc;,a4 ,special partitions of eligible multiemployer plans4 4 ,b ,,pbgc reforms #aaa4 ,guarantee rate increase for plans receiving financial assistance 7a7 ,in general ,section #djbb;,a7c77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acbb7;c77#a77 is amended by striking subparagraph 7,a7 and inserting the following3 7,a7 #ajj percent of the accrual rate up to #ae1 plus #ge percent of the lesser of-- 7i7 #ed4fg1 or 7ii7 the accrual rate1 if any1 in excess of #ae1 and 4 7b7 ,effective dates 7#a7 ,in general ,the amendments made by this section shall apply to financial assistance provided by the ,pension ,benefit ,guaranty ,corporation-- 7,a7 to plans that become insolvent after the date of the enactment of this ,act2 or 7,b7 pursuant to a special partition under section #dbcc;,a of the ,employee ,retirement ,income ,security ,act of #aigd1 as added by this ,act4 7#b7 ,exception for partitions on or before date of enactment ,the amendments made by this section shall not apply to financial assistance provided by the ,pension ,benefit ,guaranty ,corporation pursuant to a partition of a multiemployer plan occurring on or before the date of the enactment of this ,act4 #aab4 ,amendment to definition of insolvency 7a7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd ,section #dbde of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adbf7 is amended-- 7#a7 by amending subsection 7a7 to read as follows3 7a7 ,notwithstanding sections #bjc and #bjd1 an insolvent multiemployer plan shall suspend the payments of benefits which are not basic benefits1 in accordance with this section1 and terminate the plan under section #djda;,a7a77#d74 2 7#b7 in subsection 7b7-- 7,a7 by striking paragraphs 7#a7 and 7#b7 and inserting the following3 7#a7 a multiemployer plan is insolvent if the plan's available resources in any of the next #e plan years are projected not to be sufficient to pay benefits under the plan when due for the plan year2 2 7,b7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#b7 and 7#c71 respectively2 and 7,c7 in paragraph 7#b71 as so redesignated1 by inserting expected before contributions2 7#c7 by striking subsection 7c72 7#d7 by redesignating subsections 7d7 through 7g7 as subsections 7c7 through 7f71 respectively2 7#e7 in subsection 7c71 as so redesignated-- 7,a7 in paragraph 7#a7-- 7i7 by striking critical status1 as described in subsection #cje7;b77#b717 and inserting such critical status72 7ii7 by striking #c times and inserting #aj times2 and 7iii7 by striking #e plan years each place such term appears and inserting #h plan years2 7,b7 in paragraph 7#b7-- 7i7 by striking plan's available resources are not sufficient to pay benefits under the plan when due for the next plan year and inserting plan will be insolvent in any of the next #aj plan years2 and 7ii7 by inserting and the corporation before the period at the end2 7,c7 by striking paragraph 7#c72 and 7,d7 by redesignating paragraph 7#d7 as paragraph 7#c72 7#f7 in subsection 7d71 as so redesignated-- 7,a7 in paragraph 7#a7-- 7i7 by striking subsection 7d77#a7 or 7#b7 and inserting subsection 7c77#a7 or 7#b72 and 7ii7 by striking ,treasury1 in subparagraph 7,a7 and inserting ,treasury and2 7,b7 in paragraph 7#b7-- 7i7 by striking resource benefit level determined in writing for that insolvency year and inserting reduction of benefit payments to the level of basic benefits and the termination of the plan under section #djda;,a7a77#d7 as of the first day of the seventh full plan month of the plan's first insolvency year under subsection 7b77#c72 and 7ii7 by striking each insolvency year and inserting the first insolvency year2 7,c7 by striking paragraph 7#c72 and 7,d7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#c7 and 7#d71 respectively2 7#g7 in subsection 7e71 as so redesignated-- 7,a7 in paragraph 7#a7 by striking 1 for which the resource benefit level is above the level of basic benefits12 and 7,b7 by striking paragraph 7#b7 and inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,a plan sponsor who has determined that the plan's available resources for an insolvency year are below the level of basic benefits shall apply for financial assistance from the corporation under section #dbfa4 2 and 7#h7 in subsection 7f71 as so redesignated1 by striking ,subsections 7a7 and 7c7 and inserting ,subsection 7a74 7b7 ,amendments to ,internal ,revenue ,code of #aihf ,section #dah;,e of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by amending subsection 7a7 to read as follows3 7a7 ,suspension of certain benefit payments2 termination ,notwithstanding section #daa1 an insolvent multiemployer plan shall suspend the payments of benefits which are not basic benefits1 in accordance with this section1 and terminate the plan under section #djda;,a7a77#d7 of the ,employee ,retirement ,income ,security ,act of #aigd4 2 7#b7 in subsection 7b7-- 7,a7 by striking paragraphs 7#a7 and 7#b7 and inserting the following3 7#a7 ,insolvent multiemployer plan ,a multiemployer plan is insolvent if the plan's available resources in any of the next #e plan years are projected not to be sufficient to pay benefits under the plan when due for the plan year4 2 7,b7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#b7 and 7#c71 respectively2 and 7,c7 in paragraph 7#b71 as so redesignated1 by inserting expected before contributions2 7#c7 by striking subsection 7c72 7#d7 by redesignating subsections 7d7 through 7h7 as subsections 7c7 through 7g71 respectively2 7#e7 in subsection 7c71 as so redesignated-- 7,a7 in paragraph 7#a7-- 7i7 by striking critical status1 as described in subsection #dcb7;b77#b77 and inserting such critical status72 7ii7 by striking #c times and inserting #aj times2 and 7iii7 by striking #e plan years each place such term appears and inserting #h plan years2 7,b7 in paragraph 7#b7-- 7i7 by striking plan's available resources are not sufficient to pay benefits under the plan when due for the next plan year and inserting plan will be insolvent in any of the next #aj plan years2 and 7ii7 by inserting and the corporation before the period at the end2 7,c7 by striking paragraph 7#c72 and 7,d7 by redesignating paragraph 7#d7 as paragraph 7#c72 7#f7 in subsection 7d71 as so redesignated-- 7,a7 in paragraph 7#a71 by striking subsection 7d77#a7 or 7#b7 and inserting subsection 7c77#a7 or 7#b72 7,b7 in paragraph 7#b7-- 7i7 by striking resource benefit level determined in writing for that insolvency year and inserting reduction of benefit payments to the level of basic benefits and the termination of the plan under section #djda;,a7a77#d7 of the ,employee ,retirement ,income ,security ,act of #aigd as of the first day of the seventh full plan month of the plan's first insolvency year under subsection 7b77#c72 7ii7 by striking each insolvency year and inserting the first insolvency year2 and 7iii7 by striking ,resource benefit level in the heading and inserting ,notice of insolvency2 7,c7 by striking paragraph 7#c72 and 7,d7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#c7 and 7#d71 respectively2 7#g7 in subsection 7e71 as so redesignated-- 7,a7 in paragraph 7#a7 by striking 1 for which the resource benefit level is above the level of basic benefits12 and 7,b7 by striking paragraph 7#b7 and inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,plans without available resources ,a plan sponsor who has determined that the plan's available resources for an insolvency year are below the level of basic benefits shall apply for financial assistance from the ,pension ,benefit ,guaranty ,corporation under section #dbfa of the ,employee ,retirement ,income ,security ,act of #aigd4 2 and 7#h7 in subsection 7g71 as so redesignated1 by striking ,subsections 7a7 and 7c7 and inserting ,subsection 7a74 7c7 ,regulations ,the ,pension ,benefit ,guaranty ,corporation shall issue regulations implementing the amendments made by this section4 ,such regulations shall address the assumptions a plan may use in projecting whether a plan's available resources in any of the next #e plan years are projected not to be sufficient to pay benefits under the plan when due4 #aac4 ,termination of multiemployer plans 7a7 ,termination by court order ,section #djda;,a of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda;a7 is amended by adding at the end the following3 7g7 ,effect of termination order ,if a court orders the termination of a multiemployer plan under section #djdb-- 7#a7 the corporation shall determine whether the termination of such plan shall be carried out in accordance with paragraph 7#a7 or 7#b7 of subsection 7a7 7and such termination shall be treated as described in whichever of such paragraphs is applicable under the determination71 and 7#b7 the plan shall take such actions as the corporation determines necessary to implement the corporation's determination under paragraph 7#a7 by such date as the corporation specifies in such determination4 4 7b7 ,termination by reason of insolvency 7#a7 ,in general ,section #djda;,a7a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda;a7a77 is amended-- 7,a7 in paragraph 7#b71 by striking or at the end2 7,b7 in paragraph 7#c7-- 7i7 by striking section #dbjc7;b77#a7 and inserting section #djba7;b77#a72 and 7ii7 by striking the period and inserting 2 or2 and 7,c7 by adding at the end the following3 7#d7 becoming insolvent 7within the meaning of section #dbde7;b77#a774 4 7#b7 ,time of termination ,section #djda;,a7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda;a7b77 is amended by adding at the end the following new paragraphs3 7#c7 ,except as provided in paragraph 7#d71 the date on which a plan terminates under paragraph 7#d7 of subsection 7a7 is the first day of the seventh full plan month of the plan's first insolvency year under section #dbde7;b77#c74 7#d7 7,a7 ,in the case of a multiemployer plan which is an insolvent plan on the date of enactment of this paragraph-- 7i7 paragraph 7#d7 of subsection 7a7 shall apply to such plan unless such plan applies for1 and receives1 a special partition under section #dbcc;,a1 and 7ii7 the date on which plan terminates shall be determined under subparagraph 7,b74 7,b7 ,in the case of a plan described in subparagraph 7,a71 the date on which a plan terminates under paragraph 7#d7 of subsection 7a7 is-- 7i7 if the plan is not eligible for a special partition under section #dbcc;,a1 the first day of the seventh full plan month following such date of enactment1 except that such plan may1 notwithstanding the amendment required to be adopted by the plan under section #dbde7;a71 continue to provide service credit solely for purposes of vesting under the plan until such time as the plan's available resources are not sufficient to pay benefits under the plan1 and 7ii7 if the plan applies for such special partition but the corporation does not approve it1 the first day of the seventh full plan month following the final determination of the corporation disallowing such special partition4 4 7#c7 ,adoption of amendment providing for no service credit ,section #dbde7;a7 of such ,act 7#bi ,u4,s4,c4 #adbf7;a771 as amended by this ,act1 is amended by adding at the end the following3 ,the insolvent multiemployer plan shall also1 at the time of becoming insolvent1 adopt an amendment which provides that participants will receive no credit for any purpose under the plan for service with any employer after the date specified in #djda;,a7b77#c7 or 7#d71 whichever is applicable44 7#d7 ,other amendments ,section #djda;,a of such ,act of #aigd 7#bi ,u4,s4,c4 #acda;a7 is amended-- 7,a7 in subsection 7c7-- 7i7 in the matter preceding paragraph 7#a7-- 7,i7 by striking ,except and inserting ,consistent with the provisions of section #dbha1 and except2 and 7,,ii7 by striking paragraph 7#b7 and inserting paragraph 7#a71 7#b71 or 7#d72 7ii7 in paragraph 7#a71 by striking and at the end2 7iii7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7iv7 by inserting after paragraph 7#a7 the following3 7#b7 suspend the payment of benefits in excess of the level of basic benefits1 and 2 7,b7 by striking subsection 7d7 and redesignating subsections 7e7 and 7f7 as subsections 7d7 and 7e71 respectively2 and 7,c7 in subsection 7d71 as so redesignated-- 7i7 by striking paragraph 7#a7 or 7#c7 and inserting paragraph 7#a71 7#c71 or 7#d72 7ii7 by striking termination date1 unless and inserting termination date and the total contribution amount shall be not less than the average amount of the highest #c contributions in the previous #aj years1 unless2 and 7iii7 by adding at the end the following new sentence3 ,any liability under section #dbja due by an employer that withdraws from the plan after the plan termination date shall be offset by the contributions made under this subsection subsequent to the plan termination44 7c7 ,pooling of assets ,section #djda;,a of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda;a71 as amended by this section1 is further amended by adding at the end the following3 7g7 ,pooling of assets ,notwithstanding any other provision of this title1 the corporation is authorized to pool assets of terminated or insolvent multiemployer plans with fewer than #e1jjj participants or to consolidate such plans by merger1 for purposes of administration1 investment1 payment of liabilities of all such plans1 and such other purposes as it determinates to be appropriate in the administration of this title1 if it determines that such action would reduce administrative expenses or avoid an increased risk of loss4 ,the corporation may exercise this consolidation authority by administrative action without petitioning a court for an order to replace the plan's governing board of trustees1 including receivership by the corporation1 or to consolidate or merge any plans4 4 7d7 ,effective date ,the amendments made by this section shall take effect on the date of enactment of this section1 except that the amendments made by subsection 7b7 shall also apply to multiemployer plans that are insolvent on such date4 #aad4 ,benefits under certain terminated plans ,section #dbha of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adda7 is amended-- 7#a7 in subsection 7a71 by striking section #djda;,a7d7 and inserting ,section #djda;,a7c72 7#b7 by striking subsections 7b71 7c71 and 7d72 and 7#c7 by inserting after subsection 7a7 the following3 7b7 7#a7 ,if a plan has been terminated pursuant to paragraph 7#a71 7#b71 or 7#d7 of section #djda;,a7a71 the plan sponsor shall amend the plan to suspend benefits in excess of the level of basic benefits4 7#b7 ,any plan amendment required by this subsection shall1 in accordance with regulations prescribed by the corporation1 take effect not later than #f months after the date on which the plan is terminated4 7c7 7#a7 ,the value of nonforfeitable benefits under a terminated plan described in subsection 7a71 and the value of the plan's assets1 shall be determined in writing1 in accordance with regulations prescribed by the corporation1 as of the end of the plan year during which section #djda;,a7c7 becomes applicable to such plan4 7#b7 ,for purposes of this subsection1 plan assets include outstanding claims for withdrawal liability 7within the meaning of section #djja7;a77#ab74 7#c7 ,if1 according to the determination made under paragraph 7#a71 the value of plan assets is sufficient to pay nonforfeitable benefits1 the plan sponsor shall use the plan assets to purchase irrevocable commitments to provide such benefits from an insurer or otherwise distribute plan assets in satisfaction of the plan's obligations with respect to nonforfeitable benefits1 in accordance with all applicable regulations4 7d7 7#a7 ,if1 according to the determination made under subsection 7c77#a71 the value of nonforfeitable benefits exceeds the value of the plan's assets1 the plan sponsor shall amend the plan to reduce benefits under the plan as provided in paragraph 7#b74 7#b7 ,any plan amendment required by paragraph 7#a7 shall1 in accordance with regulations prescribed by the corporation-- 7,a7 reduce benefits to the extent necessary to eliminate any benefits that are not nonforfeitable2 7,b7 reduce accrued benefits to the extent that those benefits are not eligible for the corporation's guarantee under section #djbb;,a7b72 and 7,c7 suspend payment of benefits which are not basic benefits under section #djbb;,a7c74 7e7 ,the powers and duties under this section of a sponsor of a plan that is terminated as described in section #djda;,a1 before or after the plan begins receiving financial assistance under section #dbfa1 shall be prescribed by the corporation1 and the corporation shall prescribe by regulation the requirements which assure that plan participants and beneficiaries receive adequate notice of any suspension of benefits4 4 ,c ,pension insurance modeling #aba4 ,pension insurance modeling ,section #djbcc7;a7 of the ,moving ,ahead for ,progress in the #bast ,century ,act 7#abf ,stat4 #heg2 ,public ,law #aab-ada7 is amended-- 7#a7 in the subsection heading1 by striking ,annual2 7#b7 by striking ,the ,pension and inserting ,not later than ,january #a1 #bjbe1 and not less frequently than once every #e years thereafter1 the ,pension2 7#c7 by striking an annual peer review and inserting a peer review2 and 7#d7 by striking the third sentence4 ,,ii ,funding rules1 withdrawal liability1 and other reforms ,a ,minimum funding standard for multiemployer plans #bja4 ,valuation of plan liabilities 7a7 ,amendments to ,internal ,revenue ,code of #aihf 7#a7 ,charges to funding standard account ,subparagraph 7,b7 of section #dca7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking and at the end of clause 7iii71 7,b7 by redesignating clause 7iv7 as clause 7v71 7,c7 by striking actuarial assumptions in clause 7v71 as so redesignated1 and inserting actuarial assumptions not described in clause 7iv71 and 7,d7 by inserting after clause 7iii7 the following new clause3 7iv7 separately1 with respect to each plan year1 an amount equal to the excess1 if any1 of-- 7,i7 the net increase 7if any7 in the unfunded past service liability resulting from a reduction in the interest rate under paragraph 7#f77;,a7 from the rate which applied for the preceding year1 over 7,,ii7 the amount in the investment risk reduction subaccount under paragraph 7#i71 over a period of #cj years1 and 4 7#b7 ,credits to funding standard account ,clause 7iii7 of section #dca7;b77#c77;,b7 of such ,code is amended by inserting 1 except that any amount of net gain resulting from an increase in the interest rate from the rate which applied for the preceding year shall first be offset against any unamortized amounts charged under paragraph 7#b77;,b77iv7 after #ae plan years4 7#c7 ,interest ,paragraph 7#f7 of section #dca7;b7 of such ,code is amended to read as follows3 7#f7 ,interest 7,a7 ,in general ,the funding standard account 7and items therein7 shall be charged or credited 7as determined under regulations prescribed by the ,secretary7 with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine the unfunded past service liability4 ,notwithstanding any other provision of this section1 the interest rate used shall not exceed-- 7i7 #g4e percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbj1 and before ,january #a1 #bjbd1 7ii7 #g4be percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbc1 and before ,january #a1 #bjbh1 7iii7 #g4j percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbg1 and before ,january #a1 #bjcb1 7iv7 #f4ge percent for actuarial valuations for plan years beginning after ,december #ca1 #bjca1 and before ,january #a1 #bjcf1 and 7v7 #f4e percent for actuarial valuations for plan years beginning after ,december #ca1 #bjce4 ,notwithstanding subsection 7c71 the plan sponsor may direct the plan actuary to use any rate which is not lower than the rate determined under subparagraph 7,b7 7without regard to this sentence7 and not greater than the rate determined under the preceding sentence for the plan year4 ,nothing in this subparagraph shall require a plan to take into account the interest rate limitation for subsequent years under the preceding sentence in determining actuarial valuations as of any given year4 7,b7 ,interest rate for determining normal cost ,notwithstanding any other provision of this section1 the interest rate used for determining the normal cost to be charged under paragraph 7#b7 for the plan year shall be equal to the least of-- 7i7 the interest rate applicable under subparagraph 7,a7 for the plan year1 7ii7 a rate equal to the #bd-month average of the third segment rate 7as defined in section #dcj7;h77#b77;,c77iii771 as of the date the determination is made1 without regard to section #dcj7;h77#b77;,c77iv71 increased by #b percent1 or 7iii7 #e4e percent4 7,c7 ,exception for certain partitioned plans ,notwithstanding subparagraph 7,a71 in the case of a plan which has been partitioned under section #dbcc;,a of the ,employee ,retirement ,income ,security ,act of #aigd1 the rate of interest used to determine normal cost under subparagraph 7,b7 shall also be used to determine the unfunded past service liability of the plan4 7,d7 ,exception for plans using a spread-gain method ,notwithstanding subparagraph 7,b71 and except as noted in subparagraph 7,c71 in the case of a plan which uses a funding method other than the unit credit method or entry-age normal method-- 7i7 the normal cost and past service liability shall be calculated using interest rates under subparagraph 7,a71 7ii7 an additional normal cost component shall be calculated in the same manner as under paragraph 7#i77;,b77i7 based on the unit credit method1 and 7iii7 the amount determined under clause 7ii7 shall be added to the otherwise calculated normal cost under the funding method in lieu of the credit under paragraph 7#i77;,b77i74 4 7#d7 ,investment risk reduction subaccount ,subsection 7b7 of section #dca of such ,code is amended by adding at the end the following new paragraph3 7#i7 ,investment risk reduction subaccount ,for purposes of this part-- 7,a7 ,in general ,the funding standard account shall include an investment risk reduction subaccount used solely to offset losses attributable to reductions in the rate of interest used to determine the unfunded past service liability of the plan over time4 7,b7 ,annual adjustments ,for a plan year1 the investment risk reduction subaccount shall be-- 7i7 credited with the net change 7if any7 in the normal cost for the immediately preceding plan year due to recalculation to reflect the difference in interest rates under paragraphs 7#f77;,a7 and 7#f77;,b71 7ii7 charged with the amount of any reduction applied under paragraph 7#b77;,b77iv77,,ii71 or1 in the case of a plan using a spread-gain method1 an amount equal to the lesser of-- 7,i7 the entire remaining balance of such subaccount immediately before the charge1 or 7,,ii7 the amount of the increase in the present value of benefits resulting from a decrease in the interest rate from the rate which applied for the preceding year1 7iii7 at the election of the plan sponsor1 and pursuant to regulations to be issued by the ,secretary1 credited with the net decrease in the unfunded past service liability 7or present value of benefits1 in the case of a plan using a spread-gain method7 resulting from an increase in the interest rate under paragraph 7#f77;,a71 not to exceed the amount of any previous charges to the account under clause 7ii71 reduced by any previous credits under this clause1 and 7iv7 adjusted with interest at the rate under paragraph 7#f77;,a71 as applicable4 4 7#e7 ,determinations to be made under funding method ,paragraph 7#a7 of section #dca7;c7 of such ,code is amended to read as follows3 7#a7 ,determinations to be made under funding method 7,a7 ,in general ,for purposes of this part1 normal costs1 accrued liability1 and experience gains and losses used to determine the unfunded past service liability for the plan shall be determined under the funding method used to determine costs under the plan and based on the interest rate under subparagraph 7,a7 7or subparagraph 7,c71 if applicable7 of subsection 7b77#f74 7,b7 ,adjustments for funding standard account normal cost ,notwithstanding subparagraph 7,a71 in the case of a plan using the unit credit funding method or the entry-age normal funding method1 the normal cost for a plan year to be charged to the funding standard account under subsection 7b77#b7 shall be determined under the funding method used to determine costs under the plan and based on the interest rate under subsection 7b77#f77;,b74 4 7b7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,charges to funding standard account ,subparagraph 7,b7 of section #cjd7;b77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhd7;b77#b77 is amended-- 7,a7 by striking and at the end of clause 7iii71 7,b7 by redesignating clause 7iv7 as clause 7v71 7,c7 by striking actuarial assumptions in clause 7v71 as so redesignated1 and inserting actuarial assumptions not described in clause 7iv71 and 7,d7 by inserting after clause 7iii7 the following new clause3 7iv7 separately1 with respect to each plan year1 an amount equal to the excess1 if any1 of-- 7,i7 the net increase 7if any7 in the unfunded past service liability resulting from a reduction in the interest rate under paragraph 7#f77;,a7 from the rate which applied for the preceding year1 over 7,,ii7 the amount in the investment risk reduction subaccount under paragraph 7#i71 over a period of #cj years1 and 4 7#b7 ,credits to funding standard account ,clause 7iii7 of section #cjd7;b77#c77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajhd7;b77#c77;,b77 is amended by inserting 1 except that any amount of net gain resulting from an increase in the interest rate from the rate which applied for the preceding year shall first be offset against any unamortized amounts charged under paragraph 7#b77;,b77iv7 after #ae plan years4 7#c7 ,interest 7,a7 ,in general ,paragraph 7#f7 of section #cjd7;b7 of such ,act 7#bi ,u4,s4,c4 #ajhd7;b77 is amended to read as follows3 7#f7 ,interest 7,a7 ,in general ,the funding standard account 7and items therein7 shall be charged or credited 7as determined under regulations prescribed by the ,secretary7 with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine the unfunded past service liability4 ,notwithstanding any other provision of this section1 this interest rate shall not exceed-- 7i7 #g4e percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbj1 and before ,january #a1 #bjbd1 7ii7 #g4be percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbc1 and before ,january #a1 #bjbh1 7iii7 #g4j percent for actuarial valuations for plan years beginning after ,december #ca1 #bjbg1 and before ,january #a1 #bjcb1 7iv7 #f4ge percent for actuarial valuations for plan years beginning after ,december #ca1 #bjca1 and before ,january #a1 #bjcf1 and 7v7 #f4e percent for actuarial valuations for plan years beginning after ,december #ca1 #bjce4 ,notwithstanding subsection 7c71 the plan sponsor may direct the plan actuary to use any rate which is not lower than the rate determined under subparagraph 7,b7 7without regard to this sentence7 and not greater than the rate determined under the preceding sentence for the plan year4 ,nothing in this subparagraph shall require a plan to take into account the interest rate limitation for subsequent years under the preceding sentence in determining actuarial valuations as of any given year4 7,b7 ,interest rate for determining normal cost ,notwithstanding any other provision of this section1 the interest rate used for determining the normal cost to be charged under paragraph 7#b7 for the plan year shall be equal to the least of-- 7i7 the interest rate applicable under subparagraph 7,a7 for the plan year1 7ii7 a rate equal to the #bd-month average of the third segment rate 7as defined in section #cjc7;h77#b77;,c77iii771 as of the date the determination is made1 without regard to section #cjc7;h77#b77;,c77iv71 increased by #b percent1 or 7iii7 #e4e percent4 7,c7 ,exception for certain partitioned plans ,notwithstanding subparagraph 7,a71 in the case of a plan which has been partitioned under section #dbcc;,a1 the rate of interest used to determine normal cost under subparagraph 7,b7 shall also be used to determine the unfunded past service liability of the plan4 7,d7 ,exception for plans using a spread-gain method ,notwithstanding subparagraph 7,b71 and except as noted in subparagraph 7,c71 in the case of a plan which uses a funding method other than the unit credit method or entry-age normal method-- 7i7 the normal cost and past service liability shall be calculated using interest rates under subparagraph 7,a71 7ii7 an additional normal cost component shall be calculated in the same manner as under paragraph 7#i77;,b77i7 based on the unit credit method1 and 7iii7 the amount determined under clause 7ii7 shall be added to the otherwise calculated normal cost under the funding method in lieu of the credit under paragraph 7#i77;,b77i74 4 7,b7 ,conforming amendment ,subparagraph 7,a7 of section #dbcc;,a7h77#d7 of such ,act1 as added by this ,act1 is amended by inserting 1 consistent with section #cjd7;b77#f77;,c7 before the period4 7#d7 ,investment risk reduction subaccount ,subsection 7b7 of section #cjd of such ,act 7#bi ,u4,s4,c4 #ajhd7 is amended by adding at the end the following new paragraph3 7#i7 ,investment risk reduction subaccount ,for purposes of this part-- 7,a7 ,in general ,the funding standard account shall include an investment risk reduction subaccount used solely to offset losses attributable to reductions in the rate of interest used to determine the unfunded past service liability of the plan over time4 7,b7 ,annual adjustments ,for a plan year1 the investment risk reduction subaccount shall be-- 7i7 credited with the net change 7if any7 in the normal cost for the immediately preceding plan year due to recalculation to reflect the difference in interest rates under paragraphs 7#f77;,a7 and 7#f77;,b71 7ii7 charged with the amount of any reduction applied under paragraph 7#b77;,b77iv77,,ii71 or1 in the case of a plan using a spread-gain method1 an amount equal to the lesser of-- 7,i7 the entire remaining balance of such subaccount immediately before the charge1 or 7,,ii7 the amount of the increase in the present value of benefits resulting from a decrease in the interest rate from the rate which applied for the preceding year1 7iii7 at the election of the plan sponsor1 and pursuant to regulations to be issued by the ,secretary of the ,treasury1 credited with the net decrease in the unfunded past service liability 7or present value of benefits1 in the case of a plan using a spread-gain method7 resulting from an increase in the interest rate under paragraph 7#f77;,a71 not to exceed the amount of any previous charges to the account under clause 7ii71 reduced by any previous credits under this clause1 and 7iv7 adjusted with interest at the rate under paragraph 7#f77;,a71 as applicable4 4 7#e7 ,determinations to be made under funding method ,paragraph 7#a7 of section #cjd7;c7 of such ,act 7#bi ,u4,s4,c4 #ajhd7;c77 is amended to read as follows3 7#a7 ,determinations to be made under funding method 7,a7 ,in general ,for purposes of this part1 normal costs1 accrued liability1 and experience gains and losses used to determine the unfunded past service liability for the plan shall be determined under the funding method used to determine costs under the plan and based on the interest rate under subparagraph 7,a7 7or subparagraph 7,c71 if applicable7 of subsection 7b77#f74 7,b7 ,adjustments for funding standard account normal cost ,notwithstanding subparagraph 7,a71 in the case of a plan using the unit credit funding method or the entry-age normal funding method1 the normal cost for a plan year to be charged to the funding standard account under subsection 7b77#b7 shall be determined under the funding method used to determine costs under the plan and based on the interest rate under subsection 7b77#f77;,b74 4 7c7 ,plan petitions ,to increase interest assumptions 7#a7 ,in general ,pursuant to regulations to be issued by the ,secretary of the ,treasury 7or such ,secretary's delegate71 a multiemployer plan must petition the ,secretary of the ,treasury 7or delegate7 for any increase in the interest assumption made after a #cj-year amortization base is established in accordance with section #dca7;b77#b77;,b77iv7 of the ,internal ,revenue ,code of #aihf and section #cjd7;b77#b77;,b77iv7 of the ,employee ,retirement ,income ,security ,act of #aigd 7as added by this ,act74 ,the ,secretary of the ,treasury 7or delegate7 shall approve such request upon a determination that the change is reasonably supported by changes in the financial markets or changes in the plan's asset allocation1 and is consistent with the manner in which prior changes in interest rate assumptions were determined since the date of the enactment of this ,act4 7#b7 ,approval ,if the ,secretary of the ,treasury 7or such ,secretary's delegate7 does not approve or deny any petition submitted pursuant to paragraph 7#a7 within #ahj days of receiving such petition1 such petition shall be deemed to have been approved4 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbj4 ,b ,additional funding rules for multiemployer plans ,i ,plan status amendments #baa4 ,amendments to ,internal ,revenue ,code of #aihf 7a7 ,rules applying to all multiemployer plans 7#a7 ,in general ,subsection 7a7 of section #dcb of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking a multiemployer plan in effect on ,july #af1 #bjjf-- and inserting any multiemployer plan--1 7,b7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as paragraphs 7#b71 7#c71 and 7#d71 respectively1 7,c7 by inserting before paragraph 7#b71 as so redesignated1 the following new paragraph3 7#a7 the rules of subsection 7c7 shall apply1 1 7,d7 by striking subsection 7c7 in paragraph 7#b77;,a71 as so redesignated1 and inserting subsection 7d71 7,e7 by striking subsection 7d7 in paragraph 7#b77;,b71 as so redesignated1 and inserting subsection 7e71 7,f7 by striking subsection 7e7 in paragraph 7#c77;,a71 as so redesignated1 and inserting subsection 7f71 7,g7 by striking subsection 7f7 in paragraph 7#c77;,b71 as so redesignated1 and inserting subsection 7g71 and 7,h7 by striking subsection 7e77#i7 in paragraph 7#d77;,b71 as so redesignated1 and inserting subsection 7f77#i74 7#b7 ,rules of immediate application ,section #dcb of such ,code is amended-- 7,a7 by redesignating subsections 7c71 7d71 7e71 7f71 7g71 7h71 7i71 and 7j7 as subsections 7d71 7e71 7f71 7g71 7h71 7i71 7j71 and 7k71 respectively1 and 7,b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,rules applying to all multiemployer plans 7#a7 ,benefit increases 7,a7 ,increases by plan amendment ,the plan sponsor of any multiemployer plan shall not adopt a plan amendment which increases plan liabilities 7as determined as of the date of the adoption of the amendment7 due to any increase in benefits1 any change in the accrual rate of benefits1 or any change in the rate at which benefits become nonforfeitable1 unless-- 7i7 if the plan is in unrestricted status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that the increase in liabilities will not cause the plan to no longer be in unrestricted status1 7ii7 if the plan is in stable status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that any such increase or change in benefits will be paid from additional contributions not required by any collective bargaining agreement in effect as of the adoption of the amendment1 7iii7 if the plan is in endangered status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that any such increase or change in benefits will be paid from additional contributions not contemplated in any current funding improvement plan1 or 7iv7 the increase or change in benefits is required by law or is a de minimis change4 7,b7 ,increases under critical or critical and declining status ,unless required as a condition of qualification under part ,i of this subchapter or to comply with other applicable law1 in the case of a plan which is in critical or critical and declining status1 no increase in benefits1 change in the accrual rate of benefits1 or change in the rate at which benefits become nonforfeitable which increases plan liabilities shall take effect while the plan is in such status1 without regard to whether such increase or change would otherwise occur under the provisions of the plan1 unless the increase in plan liabilities due to the change is de minimis4 7#b7 ,contribution reductions ,the plan sponsor of any multiemployer plan shall not accept any collective bargaining agreement or participation agreement which reduces the rate of contributions under the plan for any participants1 suspends contributions with respect to any period of service1 or directly or indirectly excludes younger1 probationary1 or newly hired employees from participation in the plan1 unless-- 7,a7 the plan is in unrestricted status as of the adoption of such agreement and the plan actuary certifies in accordance with subsection 7b77#d7 that the reduction in contributions will not cause the plan to no longer be in unrestricted status1 7,b7 the reduction in contributions is accompanied by a reduction in future accruals for the affected participants1 and the plan actuary certifies in accordance with subsection 7b77#d7 that the combined effect of the changes in contributions and benefits is not projected to reduce the funded percentage of the plan in any year1 or 7,c7 subject to regulations issued by the ,secretary1 the plan sponsor reasonably determines that the acceptance of such an agreement is in the best interests of plan participants and beneficiaries and that rejection of the agreement would have an adverse financial effect on the plan4 4 7#c7 ,stable and unrestricted plans ,subsection 7b7 of section #dcb of such ,code is amended-- 7,a7 by striking endangered and critical in the heading1 7,b7 by redesignating paragraphs 7#a71 7#b71 7#c71 7#d71 7#e71 and 7#f7 as paragraphs 7#b71 7#c71 7#d71 7#e71 7#f71 and 7#g71 respectively1 and 7,c7 by inserting before paragraph 7#b7 the following new paragraph3 7#a7 ,stable and unrestricted status 7,a7 ,stable ,a multiemployer plan is in stable status for a plan year if1 as determined by the plan actuary under paragraph 7#d71 the plan is not in unrestricted status for the plan year1 is not in endangered1 critical1 or critical and declining status for the plan year1 and is not described in paragraph 7#f74 7,b7 ,unrestricted ,a multiemployer plan is in unrestricted status for a plan year if1 as determined by the plan actuary under paragraph 7#d7-- 7i7 the plan is not in endangered1 critical1 or critical and declining status for the plan year1 7ii7 the plan is not described in paragraph 7#f71 and 7iii7 as of the beginning of the plan year-- 7,i7 the plan's current liability funded percentage for such plan year is at least #gj percent and the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is at least #aae percent1 or 7,,ii7 the plan's current liability funded percentage for such plan year is at least #hj percent4 7,c7 ,current liability funded percentage ,for purposes of this section1 the term current liability funded percentage means the percentage equal to a fraction the numerator of which is the value of plan assets 7as determined for purposes of section #dca7;c77#f77;,a77ii77,,ii77 and the denominator of which is the current liabilities of the plan 7as defined in section #dca7;c77#f77;,d774 4 7#d7 ,amendment to annual certification by plan actuary ,subparagraph 7,a7 of paragraph 7#d7 7as redesignated by paragraph 7#c77 of section #dcb7;b7 of such ,code is amended by inserting whether or not the plan is in unrestricted or stable status for such plan year1 in clause 7i7 before whether or not the plan is in endangered status4 7#e7 ,conforming amendments 7,a7 ,paragraphs 7#b7 and 7#c7 of section #dcb7;b7 of such ,code1 as redesignated by paragraph 7#c71 are each amended by striking paragraph 7#c7 and inserting paragraph 7#d74 7,b7 ,section #dcb7;b77#b7 of such ,code1 as so redesignated and amended1 is further amended by striking paragraph 7#e7 and inserting paragraph 7#f74 7,c7 ,section #dcb7;b77#d7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking paragraph 7#d7 in subparagraph 7,b77iv7 thereof and inserting paragraph 7#e71 7ii7 by striking subsection 7e77#i7 both places it appears in subparagraph 7,b77v7 and inserting subsection 7f77#i71 7iii7 by striking subsection 7e77#c77;,a77ii7 in subparagraph 7,b77v7 and inserting subsection 7f77#c77;,a77ii71 7iv7 by striking subsection 7e7 in subparagraph 7,b77v7 and inserting subsection 7f71 7v7 by striking paragraph 7#d7 each place it appears in subparagraphs 7,d77i7 and 7,d77v7 thereof and inserting paragraph 7#e71 7vi7 by striking subsection 7e77#h7 in subparagraph 7,d77ii77,i7 thereof and inserting subsection 7f77#h71 7vii7 by striking paragraph 7#e7 in subparagraph 7,d77iii7 thereof and inserting paragraph 7#f71 and 7viii7 by striking 7iii7 ,in the case of in subparagraph 7,d77iii7 thereof and inserting 7iii7 ,special rule4--4 7,d7 ,section #dcb7;b77#e7 of such ,code1 as redesignated by paragraph 7#c71 is amended-- 7i7 by striking paragraph 7#b7 and inserting paragraph 7#c71 7ii7 by striking paragraph 7#c77;,b77iv7 and inserting paragraph 7#d77;,b77iv71 7iii7 by striking paragraph 7#c7 in subparagraph 7,a7 thereof and inserting paragraph 7#d71 7iv7 by striking paragraph 7#c77;,a7 in subparagraph 7,a7 thereof and inserting paragraph 7#d77;,a71 7v7 by striking paragraph 7#b7 in subparagraph 7,b7 thereof and inserting paragraph 7#c71 and 7vi7 by striking subsection 7e77#d77;,b7 in subparagraph 7,c7 thereof and inserting subsection 7f77#d77;,b74 7,e7 ,section #dcb7;b77#f77;,a7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking paragraph 7#c77;,a7 and inserting paragraph 7#d77;,a71 7ii7 by striking paragraph 7#a77;,a7 and inserting paragraph 7#b77;,a71 and 7iii7 by striking paragraph 7#a77;,b7 and inserting paragraph 7#b77;,b74 7,f7 ,section #dcb7;b77#g7 of such ,code1 as so redesignated1 is amended by striking paragraph 7#b7 and inserting paragraph 7#c74 7,g7 ,paragraphs 7#a77;,a71 7#d77;,a77ii71 7#d77;,c77i71 7#d77;,c77ii71 7#d77;,d71 7#e77;,a77i71 7#e77;,b71 and 7#h7 of subsection 7d71 and subsections 7e77#b71 7f77#a77;,a71 7f77#d77;,b77i71 7f77#d77;,b77ii77,i71 7f77#e71 and 7g77#c7 of section #dcb of such ,code1 as respectively redesignated by paragraph 7#b71 are each amended by striking subsection 7b77#c77;,a7 and inserting subsection 7b77#d77;,a74 7,h7 ,section #dcb7;d77#c77;,a77i77,i7 of such ,code1 as so redesignated1 is amended by striking paragraph 7b77#c7 and inserting subsection 7b77#d74 7,i7 ,section #dcb7;d77#d77;,d7 of such ,code1 as so redesignated1 is amended by striking subsection 7d7 and inserting subsection 7e74 7,j7 ,section #dcb7;e7 of such ,code1 as so redesignated1 is amended to read as follows3 7e7 ,rules for operation of plan during adoption and improvement periods ,a plan may not be amended after the date of the adoption of a funding improvement plan under subsection 7d7 so as to be inconsistent with the funding improvement plan or the requirements of subsection 7c74 4 7,k7 ,clauses 7i77,i7 and 7ii77,i7 of section #dcb7;f77#d77;,b7 of such ,code1 as so redesignated1 are each amended by striking subsection 7b77#b7 and inserting subsection 7b77#c74 7,l7 ,subsections 7f77#h77;,a77ii7 and 7g77#b77;,a7 of section #dcb of such ,code1 as so redesignated1 are each amended by striking subsection 7b77#c77;,d7 and inserting subsection 7b77#d77;,d74 7,m7 ,section #dcb7;f77#i77;,j7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking subsection 7b77#c7 and inserting subsection 7b77#d71 and 7ii7 by striking paragraphs 7#a7 and 7#b7 in clause 7i7 thereof and inserting paragraphs 7#b7 and 7#c74 7,n7 ,subparagraphs 7,a7 and 7,b7 of section #dcb7;g77#a7 of such ,code1 as so redesignated1 are each amended by striking subsection 7e7 and inserting subsection 7f74 7,o7 ,paragraph 7#b77;,a7 of section #dcb7;g7 of such ,code1 as so redesignated1 is amended by striking 7b77#c77;,d7 and inserting 7b77#d77;,d74 7,p7 ,section #dcb7;h7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking subsection 7e77#h7 or 7f7 in paragraph 7#a7 thereof and inserting subsection 7f77#h7 or 7g71 7ii7 by striking subsection 7e77#i7 in paragraph 7#a7 thereof and inserting subsection 7f77#i71 7iii7 by striking subsection 7e77#g7 in paragraph 7#b7 thereof and inserting subsection 7f77#g71 and 7iv7 by striking rehabilitation plan and all that follows in paragraph 7#c77;,b7 thereof and inserting rehabilitation plan4 ,the preceding sentence shall not apply to any increase in contribution requirements due to increased levels of work1 employment1 or periods for which compensation is provided1 except to the extent such an increase is used to provide an increased accrual rate of benefits or change in the rate at which benefits become nonforfeitable which increases plan liabilities44 7,q7 ,section #dcb7;i7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking subsection 7c7 and inserting subsection 7d71 and 7ii7 by striking subsection 7e7 and inserting subsection 7f74 7,r7 ,section #dcb7;j77#b7 of such ,code1 as so redesignated1 is amended by striking subsections 7c7 and 7e7 and inserting subsections 7d7 and 7f74 7,s7 ,section #dab7;b77#c7 of such ,code is amended by striking section #dcb7;e7 and inserting section #dcb7;f74 7,t7 ,section #dah;,e of such ,code1 as amended by this ,act1 is further amended-- 7i7 by striking #dcb7;b77#b7 each place it appears in subsections 7c77#a71 7c77#b71 7d77#a71 and 7d77#b71 as redesignated by section #aab1 and inserting #dcb7;b77#c71 and 7ii7 by striking #dcb7;e77#i7 in subsection 7g71 as so redesignated1 and inserting #dcb7;f77#i74 7,u7 ,section #diga7;g7 of such ,code is amended-- 7i7 by striking #dcb7;e7 in paragraph 7#c77;,b77i7 and inserting #dcb7;f71 7ii7 by striking #dcb7;b77#c77;,a77ii7 in paragraph 7#c77;,b77ii7 and inserting #dcb7;b77#d77;,a77i77,,ii71 7iii7 by striking #dcb7;e77#a77;,a7 in paragraph 7#d77;,b77ii7 and inserting #dcb7;f77#a77;,a71 and 7iv7 by striking #dcb7;j77#i7 in paragraph 7#d77;,c77ii7 and inserting #dcb7k77#i74 7,v7 ,subsection 7c77#a7 of section #dihj;,i of such ,code1 as added by this ,act1 is amended by adding at the end the following3 ,such term shall not include such an original plan for any plan year in which the plan is in unrestricted status 7as defined in section #dcb7;b77#a77;,b7744 7,w7 ,the heading of section #dcb of such ,code is amended by striking in endangered status or critical status4 7#f7 ,withdrawal liability determination for plans emerging from endangered or critical status ,section #dcb7;h7 of such ,code1 as redesignated by paragraph 7#b7 and as amended by paragraph 7#e71 is further amended by striking paragraph 7#d7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,emergence from endangered or critical status 7,a7 ,in general ,in the case of increases in the contribution rate 7or other increases in contribution requirements unless due to increased levels of work1 employment1 or periods for which compensation is provided7 disregarded pursuant to paragraph 7#c71 this subsection shall cease to apply as of the later of-- 7i7 the end of the first plan year following the plan year in which the plan is no longer in endangered or critical status1 or 7ii7 the end of the plan year which includes the expiration date of the first collective bargaining agreement requiring plan contributions which expires after the plan is no longer in endangered or critical status4 7,b7 ,highest contribution rate ,notwithstanding subparagraph 7,a71 once the plan emerges from endangered or critical status-- 7i7 increases in the contribution rate disregarded pursuant to paragraph 7#c7 shall continue to be disregarded in determining the highest contribution rate under section #dbai7;c7 of such ,act for plan years during which the plan was in endangered or critical status1 and 7ii7 the highest contribution rate for purposes of such section shall be the greater of-- 7,i7 the sum of-- 7aa7 the employer's contribution rate as of the later of the last day of the last plan year ending before ,december #ca1 #bjad1 and the last day of the plan year for which the employer first had an obligation to contribute to the plan1 and 7bb7 any contribution increases determined in accordance with this section after such later date and before the date the employer withdraws from the plan1 or 7,,ii7 the highest contribution rate for any plan year after the plan year which includes the earlier of-- 7aa7 the expiration date of the first collective bargaining agreement applicable to the withdrawing employer requiring plan contributions which expires after the plan is no longer in endangered or critical status1 or 7bb7 the date as of which the withdrawing employer negotiated a contribution rate effective after the plan year in which the plan is no longer in endangered or critical status4 4 7#g7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act4 7b7 ,determination of endangered status ,paragraph 7#b7 of section #dcb7;b7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7a77#c71 is amended to read as follows3 7#b7 ,endangered status ,a multiemployer plan is in endangered status for a plan year if1 as determined by the plan actuary under paragraph 7#e71 the plan is not in critical or declining status for the plan year and is not described in paragraph 7#g71 and1 as of the beginning of the plan year-- 7,a7 the plan's funded percentage for such plan year is less than #hj percent1 7,b7 the plan is projected to have an accumulated funding deficiency for any of the #i succeeding plan years1 taking into account any extension of amortization periods under section #dca7;d71 or 7,c7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is less than #ajj percent4 4 7c7 ,determination of critical status ,paragraph 7#c7 of section #dcb7;b7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7a77#c71 is amended to read as follows3 7#c7 ,critical status 7,a7 ,in general ,a multiemployer plan is in critical status for a plan year if1 as determined by the plan actuary under paragraph 7#e71 the plan is not in declining status for the plan year and1 as of the beginning of the plan year-- 7i7 the plan's funded percentage is less than #fe percent1 7ii7 the plan has an accumulated funding deficiency for the plan year1 or is projected to have such an accumulated funding deficiency for any of the #f succeeding plan years1 taking into account any extension of amortization periods under section #dca7;d71 or 7iii7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is less than #hj percent4 7,b7 ,original plans ,notwithstanding subparagraph 7,a71 a multiemployer plan which is an original plan pursuant to section #dbcc;,a7d77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd shall be treated as being in critical status for the period of #ae consecutive plan years beginning with the plan year that includes the date of the partition under such section #dbcc;,a4 4 7d7 ,declining status 7#a7 ,in general 7,a7 ,the following provisions of section #dcb of the ,internal ,revenue ,code of #aihf are each amended by striking critical and declining each place it appears and inserting declining3 7i7 ,subsection 7a77#d7 7as redesignated by subsection 7a77#a774 7ii7 ,subparagraphs 7,a7 and 7,b77i7 of subsection 7b77#a71 as added by subsection 7a77#c74 7iii7 ,subsection 7b77#d77;,b77v7 7as redesignated by subsection 7a77#c771 and the heading thereof4 7iv7 ,paragraph 7#a77;,b71 and the heading of such paragraph 7#a77;,b71 of subsection 7c71 as added by subsection 7a77#b74 7v7 ,the heading of paragraph 7#i7 of subsection 7f7 7as redesignated by subsection 7a77#b774 7vi7 ,subparagraphs 7,a71 7,c71 7,g77i71 and 7,j7 of subsection 7f77#i7 7as so redesignated74 7vii7 ,subsection 7h77#a7 7as so redesignated74 7,b7 ,section #dah;,e7g7 of such ,code1 as amended by section #aab and subsection 7a71 is further amended by striking critical and declining status and inserting declining status4 7#b7 ,determination of declining status 7,a7 ,in general ,subsection 7b7 of section #dcb of such ,code is amended-- 7i7 by striking paragraph 7#g71 as redesignated by subsection 7a77#c71 7ii7 by redesignating paragraphs 7#d71 7#e71 and 7#f71 as so redesignated1 as paragraphs 7#e71 7#f71 and 7#g71 respectively1 and 7iii7 by inserting after paragraph 7#c71 as so redesignated1 the following new paragraph3 7#d7 ,declining status ,a multiemployer plan is in declining status for a plan year if-- 7,a7 as determined by the plan actuary under paragraph 7#e71 as of the beginning of the plan year the plan is projected to become insolvent within the plan year or any of the #bi succeeding plan years1 7,b7 the plan is otherwise in critical status for the plan year as determined by the plan actuary under paragraph 7#e71 and the plan sponsor determines that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status within the next #cj plan years1 or 7,c7 the plan has a funded percentage for the plan year which is greater than the projected funded percentage as of the first day of the #aeth succeeding plan year1 unless the funded percentage for the plan year is #ajj percent or greater and the projected funded percentage as of the first day of such #aeth succeeding plan year is less than #ajj percent4 4 7,b7 ,conforming amendments 7i7 ,paragraph 7#a7 of section #dcb7;b7 of such ,code1 as added by subsection 7a77#c71 is amended-- 7,i7 by striking paragraph 7#d7 each place it appears in subparagraphs 7,a7 and 7,b7 and inserting paragraph 7#e71 and 7,,ii7 by striking paragraph 7#f7 each place it appears in subparagraphs 7,a7 and 7,b7 and inserting paragraph 7#g74 7ii7 ,subsection 7c7 of section #dcb of such ,code1 as added by subsection 7a77#b71 is amended by striking 7b77#d7 each place it appears in paragraphs 7#a77;,a77i71 7#a77;,a77ii71 7#a77;,a77iii71 7#b77;,a71 and 7#b77;,b7 and inserting 7b77#e74 7iii7 ,section #dcb7;b77#e7 of such ,code1 as further redesignated by subparagraph 7,a7 and as amended by section #cba and subsection 7a71 is further amended-- 7,i7 by striking paragraph 7#e7 in subparagraph 7,b77iv7 thereof and inserting paragraph 7#f71 7,,ii7 by striking paragraph 7#e7 each place it appears in subparagraphs 7,d77i7 and 7,d77vi7 thereof and inserting paragraph 7#f71 and 7,,iii7 by striking paragraph 7#f7 in subparagraph 7,d77iv7 thereof and inserting paragraph 7#g74 7iv7 ,section #dcb7;b77#f7 of such ,code1 as so further redesignated and amended1 is further amended-- 7,i7 by striking paragraph 7#d77;,b77iv7 and inserting paragraph 7#e77;,b77iv71 7,,ii7 by striking paragraph 7#d7 in subparagraph 7,a7 thereof and inserting paragraph 7#e71 and 7,,iii7 by striking paragraph 7#d77;,a7 in subparagraph 7,a7 thereof and inserting paragraph 7#e77;,a74 7v7 ,section #dcb7;b77#g77;,a7 of such ,code1 as so further redesignated and amended1 is further amended-- 7,i7 by striking paragraph 7#d77;,a7 and inserting paragraph 7#e77;,a71 and 7,,ii7 by striking either paragraph 7#b77;,a7 or paragraph 7#b77;,b7 and inserting any subparagraph of paragraph 7#b74 7vi7 ,section #dcb7;b77#g77;,b7 of such ,code1 as so further redesignated1 is amended by striking critical or endangered and inserting endangered1 critical1 or declining4 7vii7 ,paragraphs 7#a77;,a71 7#d77;,a77ii71 7#d77;,c77i71 7#d77;,c77ii71 7#d77;,d71 and 7#h7 of subsection 7d71 and subsections 7f77#a77;,a71 7f77#d77;,b77i71 7f77#d77;,b77ii77,i71 7f77#e71 and 7g77#c7 of section #dcb of such ,code1 as redesignated and amended by subsection 7a71 are each further amended by striking subsection 7b77#d77;,a7 and inserting subsection 7b77#e77;,a74 7viii7 ,section #dcb7;d77#c77;,a77i77,i7 of such ,code1 as so redesignated and amended1 is further amended by striking subsection 7b77#d7 and inserting subsection 7b77#e74 7ix7 ,subsections 7f77#h77;,a77ii7 and 7g77#b77;,a7 of section #dcb of such ,code1 as so redesignated and amended1 are each further amended by striking subsection 7b77#d77;,d7 and inserting subsection 7b77#e77;,d74 7x7 ,section #dcb7;f77#i77;,j7 of such ,code1 as so redesignated and amended1 is further amended by striking subsection 7b77#d7 and inserting subsection 7b77#e74 7#c7 ,solvency plan 7,a7 ,in general ,paragraph 7#d7 7as redesignated by subsection 7a77#a7 and amended by paragraph 7#a77 of section #dcb7;a7 of such ,code is amended-- 7i7 by redesignating subparagraph 7,b7 as subparagraph 7,d71 and 7ii7 by striking subparagraph 7,a7 and inserting before subparagraph 7,d7 7as so redesignated7 the following new subparagraphs3 7,a7 the plan sponsor shall adopt and implement a solvency plan in accordance with the requirements of subsection 7h71 7,b7 any rehabilitation plan in place as of the date the plan enters declining status shall continue to apply throughout the solvency plan adoption period1 7,c7 the requirements of subsection 7i7 and paragraphs 7#f7 and 7#g7 of subsection 7f7 shall apply during the solvency plan adoption period and the solvency attainment period1 and 4 7,b7 ,adoption of plan ,section #dcb of such ,code1 as amended by this section1 is further amended-- 7i7 by redesignating subsection 7l71 as added by title ,v of this ,act1 as subsection 7n71 and by further redesignating subsections 7h71 7i71 7j71 and 7k71 as redesignated by subsection 7a77#b71 as subsections 7j71 7k71 7l71 and 7m71 respectively1 and 7ii7 by inserting after subsection 7g71 as redesignated by subsection 7a77#b71 the following new subsections3 7h7 ,solvency plan must be adopted for multiemployer plans in declining status 7#a7 ,in general ,in any case in which a multiemployer plan is in declining status for a plan year1 the plan sponsor1 in accordance with this subsection-- 7,a7 shall adopt a solvency plan not later than #bdj days following the required date for the actuarial certification of declining status under subsection 7b77#e77;,a71 and 7,b7 within #cj days after the adoption of the solvency plan shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the current accrual rate7 based on the contribution rate in effect as of the later of the first day of the plan year in which the plan enters declining status or the date of a partition under section #dbcc;,a of the ,employee ,retirement ,income ,security ,act of #aigd1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 ,no schedule provided to or adopted by the bargaining parties shall provide for a monthly benefit accrual rate in excess of the rate described in subparagraph 7,b77i77,,ii74 7#b7 ,exception for years after process begins ,paragraph 7#a7 shall not apply to a plan year if such year is in a solvency plan adoption period or solvency attainment period by reason of the plan being in declining status for a preceding plan year1 except that the next update of the solvency plan shall fulfill the requirement of paragraph 7#a77;,b77i74 ,for purposes of this section1 such preceding plan year shall be the initial determination year with respect to the solvency plan to which it relates4 7#c7 ,solvency plan ,for purposes of this section1 a solvency plan is a plan which consists of the actions1 including options or a range of options to be proposed to the bargaining parties1 formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to enable the plan to delay or avoid the projected insolvency4 7#d7 ,solvency attainment period ,for purposes of this section-- 7,a7 ,in general ,except as provided in subparagraph 7,b71 the solvency attainment period for any solvency plan adopted pursuant to this subsection is the period-- 7i7 beginning on the first day of the first plan year of the multiemployer plan beginning after the earlier of-- 7,i7 the second anniversary of the date of the adoption of the solvency plan1 or 7,,ii7 the expiration of the collective bargaining agreements in effect on the due date for the actuarial certification of declining status for the initial determination year under subsection 7b77#e77;,a7 and covering1 as of such due date1 at least #ge percent of the active participants in such plan1 and 7ii7 ending on the date the plan either emerges from declining status or becomes insolvent4 7,b7 ,coordination with changes in status 7i7 ,plans no longer in declining status ,if the plan's actuary certifies in accordance with subparagraph 7,c7 for a plan year in any solvency plan adoption period or solvency attainment period that the plan is no longer in declining status1 the solvency plan adoption period or solvency attainment period1 whichever is applicable1 shall end as of the date of such certification4 7ii7 ,plans in critical or endangered status ,if the plan's actuary certifies under subsection 7b77#e77;,a7 for the plan year described in clause 7i7 that the plan is in critical or endangered rather than declining status1 the provisions of subsections 7d7 and 7e71 or subsections 7f7 and 7g71 whichever are applicable1 shall be applied as if such plan year were an initial determination year1 except that the plan may not be amended in a manner inconsistent with the solvency plan in effect for the preceding plan year until a new funding improvement plan or rehabilitation plan1 whichever is applicable1 is adopted4 7,c7 ,emergence ,a plan in declining status shall remain in such status until a plan year for which the plan actuary certifies1 in accordance with subsection 7b77#e77;,a71 that the plan is not described in one or more of the subparagraphs in subsection 7b77#d7 as of the beginning of the plan year4 7#e7 ,updates to solvency plans and schedules 7,a7 ,solvency plan ,the plan sponsor shall annually update the solvency plan and shall file the update with the plan's annual report under section #ajd of the ,employee ,retirement ,income ,security ,act of #aigd4 7,b7 ,schedules ,the plan sponsor shall annually update any schedule of contribution rates provided under this subsection to reflect the experience of the plan4 7,c7 ,duration of schedule ,a schedule of contribution rates provided by the plan sponsor and relied upon by bargaining parties in negotiating a collective bargaining agreement shall remain in effect for the duration of that collective bargaining agreement4 7#f7 ,imposition of schedule where failure to adopt solvency plan 7,a7 ,initial contribution schedule ,if-- 7i7 a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered declining status expires1 and 7ii7 after receiving one or more schedules from the plan sponsor under paragraph 7#a77;,b71 the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the solvency plan and a schedule from the plan sponsor1 the plan sponsor shall implement the schedule described in paragraph 7#a77;,b77i7 beginning on the date specified in subparagraph 7,c74 7,b7 ,subsequent contribution schedule ,if-- 7i7 a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a solvency plan 7or imposed under subparagraph 7,a77 expires while the plan is still in declining status1 and 7ii7 after receiving one or more updated schedules from the plan sponsor under paragraph 7#e77;,b71 the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated solvency plan and a schedule from the plan sponsor1 then the contribution schedule applicable under the expired collective bargaining agreement1 as updated and in effect on the date the collective bargaining agreement expires1 shall be implemented by the plan sponsor beginning on the date specified in subparagraph 7,c74 7,c7 ,date of implementation ,the date specified in this subparagraph is the date which is #ahj days after the date on which the collective bargaining agreement described in subparagraph 7,a7 or 7,b7 expires4 7#g7 ,solvency plan adoption period ,for purposes of this section1 the term solvency plan adoption period means the period beginning on the date of the certification under subsection 7b77#e77;,a7 for the initial determination year and ending on the day before the first day of the solvency attainment period4 7i7 ,rules for operation of plan during adoption and attainment periods 7#a7 ,compliance with solvency plan 7,a7 ,in general ,a plan may not be amended after the date of the adoption of a solvency plan under subsection 7h7 so as to be inconsistent with the solvency plan4 7,b7 ,special rules for benefit increases ,a plan may not be amended after the date of the adoption of a solvency plan under subsection 7h7 so as to increase benefits1 including future benefit accruals1 unless the increase is required by law or is a de minimis change4 7,c7 ,special rules for increases in compensation or contribution rate ,any increase in employee compensation or contribution rates which takes effect after the first day of the plan year in which the plan enters declining status shall not give rise to an increase in benefits or future benefit accruals under the plan4 7#b7 ,restriction on lump sums and similar benefits 7,a7 ,in general ,effective on the date the notice of certification of the plan's declining status for the initial determination year under subsection 7b77#e77;,d7 is sent1 and notwithstanding section #daa7;d77#f71 the plan shall not pay-- 7i7 any payment1 in excess of the monthly amount paid under a single life annuity 7plus any social security supplements described in the last sentence of section #daa7;a77#i771 to a participant or beneficiary whose annuity starting date 7as defined in section #dag7;f77#b77 occurs after the date such notice is sent1 7ii7 any payment for the purchase of an irrevocable commitment from an insurer to pay benefits1 or 7iii7 any other payment specified by the ,secretary by regulations1 unless it is a de minimis amount4 7,b7 ,exception ,subparagraph 7,a7 shall not apply to a benefit which under section #daa7;a77#aa7 may be immediately distributed without the consent of the participant or to any makeup payment in the case of a retroactive annuity starting date or any similar payment of benefits owed with respect to a prior period4 7#c7 ,special rules for plan adoption period ,during the period beginning on the date of the certification under subsection 7b77#e77;,a7 for the initial determination year and ending on the date of the adoption of a solvency plan-- 7,a7 the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for-- 7i7 a reduction in the level of contributions for any participants1 7ii7 a suspension of contributions with respect to any period of service1 or 7iii7 any new direct or indirect exclusion of younger or newly hired employees from plan participation1 unless the plan sponsor reasonably determines that the acceptance of such an agreement is in the best interests of participants and beneficiaries and that rejection of such agreement would adversely affect the plan1 and 7,b7 no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits1 any change in the accrual of benefits1 or any change in the rate at which benefits become nonforfeitable under the plan may be adopted unless the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a or to comply with other applicable law4 4 7,c7 ,suspension of benefits ,section #dcb of such ,code1 as amended by this section1 is further amended-- 7i7 by redesignating paragraph 7#i7 of subsection 7f7 7as redesignated by subsection 7a77#b77 as paragraph 7#h7 of subsection 7h7 7as added by subparagraph 7,b771 and 7ii7 by moving such paragraph to the position immediately after paragraph 7#g7 of such subsection 7h74 7#d7 ,conforming amendments 7,a7 ,subsection 7a77#d77;,d7 of section #dcb of such ,code1 as redesignated and amended by the preceding provisions of this section1 is further amended by striking subsection 7f77#i7 and inserting subsection 7h77#h74 7,b7 ,paragraph 7#e7 of section #dcb7;b7 of such ,code1 as so redesignated and as amended by section #cba and the preceding provisions of this section1 is further amended-- 7i7 by striking critical in subparagraph 7,a77i77,i7 and inserting critical or declining1 7ii7 by striking funding improvement or rehabilitation period in subparagraph 7,a77i77,,ii7 and inserting funding improvement1 rehabilitation1 or solvency attainment period1 7iii7 by striking funding improvement or rehabilitation plan in subparagraph 7,a77i77,,ii7 and inserting funding improvement1 rehabilitation1 or solvency plan1 7iv7 by striking endangered or critical in subparagraph 7,a77i77,v77bb7 and inserting endangered1 critical1 or declining1 7v7 by striking funding improvement plan or rehabilitation in subparagraph 7,a77iv7 and inserting funding improvement1 rehabilitation1 or solvency1 7vi7 by striking critical each place it appears in subparagraph 7,a77vi7 and inserting critical or declining1 7vii7 by striking rehabilitation period in subparagraph 7,a77vi7 and inserting rehabilitation or solvency attainment period1 7viii7 by striking as described in subsection 7f77#i7 in subparagraph 7,b77v71 7ix7 by inserting if the plan is already in a rehabilitation period1 and before if reasonable in subparagraph 7,b77v77,i71 7x7 by striking subsection 7f77#i7 in subparagraph 7,b77v77,,ii7 and inserting subsection 7h77#h71 7xi7 by striking endangered or critical both places it appears in subparagraph 7,d77i7 and inserting endangered1 critical1 or declining1 7xii7 by striking endangered or critical in the heading of subparagraph 7,d77ii7 and inserting endangered1 critical1 or declining1 7xiii7 by striking endangered or critical in subparagraph 7,d77ii7 and inserting endangered1 critical1 or declining1 7xiv7 by striking funding improvement or rehabilitation plan both places it appears in subclauses 7,i7 and 7,,ii7 of subparagraph 7,d77ii7 and inserting funding improvement1 rehabilitation1 or solvency plan1 and 7xv7 by adding at the end of subparagraph 7,d7 the following new clause3 7vii7 ,notice of projection to be in declining status in a future plan year ,in any case in which it is certified under subparagraph 7,a77i7 that a multiemployer plan will be in declining status for any of #e succeeding plan years 7but not for the current plan year71 the plan sponsor shall1 not later than #cj days after the date of the certification1 provide notification of the projected declining status to the ,pension ,benefit ,guaranty ,corporation4 4 7,c7 ,subparagraph 7,j7 of section #dcb7;h77#h7 of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking critical in the heading and inserting declining1 and 7ii7 by striking shall not emerge from critical status under paragraph 7#d77;,b71 and inserting shall not emerge from declining status4 7,d7 ,subsection 7j7 of section #dcb of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking 7f77#h7 or 7g7 in paragraph 7#a7 and inserting 7f77#h71 7g71 or 7i71 7ii7 by striking subsection 7f77#i7 in paragraph 7#a7 and inserting subsection 7h77#h71 7iii7 by striking funding improvement or rehabilitation plan in the heading of paragraph 7#c7 and inserting funding improvement1 rehabilitation1 or solvency1 7iv7 by striking funding improvement plan or rehabilitation plan both places it appears in subparagraphs 7,a7 and 7,b7 of paragraph 7#c7 and inserting funding improvement1 rehabilitation1 or solvency plan1 7v7 by striking endangered or critical in the heading of paragraph 7#d71 as amended by subsection 7a71 and inserting endangered1 critical1 or declining1 7vi7 by striking endangered or critical each place it appears in paragraph 7#d71 as so amended1 and inserting endangered1 critical1 or declining1 and 7vii7 by striking critical or endangered in paragraph 7#d7 and inserting endangered1 critical1 or declining4 7,e7 ,subsection 7k7 of section #dcb of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking or a rehabilitation plan under subsection 7f7 and inserting 1 a rehabilitation plan under subsection 7f71 or a solvency plan under subsection 7h71 7ii7 by striking endangered status or a plan in critical status and inserting endangered1 critical1 or declining status1 7iii7 by striking has not agreed on a funding improvement plan or rehabilitation plan and inserting has not agreed on a funding improvement1 rehabilitation1 or solvency plan 7whichever is applicable71 and 7iv7 by striking adoption of a funding improvement plan or rehabilitation plan and inserting adoption of a funding improvement1 rehabilitation1 or solvency plan4 7,f7 ,subsection 7l7 of section #dcb of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking endangered status or in critical status in paragraph 7#a7 and inserting endangered1 critical1 or declining status1 7ii7 by striking endangered or critical in paragraph 7#a7 and inserting endangered1 critical1 or declining1 and 7iii7 by striking 7d7 and 7f7 in paragraph 7#b7 and inserting 7d71 7f71 and 7h74 7,g7 ,section #dah;,e of such ,code1 as amended by section #aab and this section1 is further amended-- 7i7 by striking #dcb7;b77#c7 each place it appears in subsections 7c77#a71 7c77#b71 7d77#a71 and 7d77#b7 and inserting #dcb7;b77#c71 or a plan in declining status1 as described in section #dcb7;b77#d71 and 7ii7 by striking #dcb7;f77#i7 in subsection 7g7 and inserting #dcb7;h77#h74 7,h7 ,section #diga7;g7 of such ,code1 as amended by this section1 is further amended-- 7i7 by striking endangered or critical in the heading and inserting endangered1 critical1 or declining1 7ii7 by striking critical status in paragraph 7#a77;,a7 and inserting critical or declining status1 7iii7 by striking or rehabilitation plan in the heading of paragraph 7#b7 and inserting 1 rehabilitation1 or solvency plan1 7iv7 by striking plan or rehabilitation plan in paragraph 7#b77;,a7 and inserting 1 rehabilitation1 or solvency plan1 7v7 by striking rehabilitation plan in paragraph 7#b77;,c7 and inserting funding improvement1 rehabilitation1 or solvency plan1 7vi7 by striking paragraph 7#c7 and redesignating paragraphs 7#d71 7#e71 and 7#f7 as paragraphs 7#c71 7#d71 and 7#e71 respectively1 7vii7 by striking rehabilitation plan in the heading of paragraph 7#c71 as so redesignated1 and inserting rehabilitation or solvency plan1 7viii7 by striking critical status in paragraph 7#c77;,a71 as so redesignated1 and inserting critical or declining status1 7ix7 by striking rehabilitation plan in paragraph 7#c77;,a71 as so redesignated1 and inserting rehabilitation or solvency plan1 7x7 by striking described in section #dcb7;f77#a77;,a7 and ending on the day on which the rehabilitation plan is adopted in paragraph 7#c77;,b77ii71 as so redesignated1 and inserting described in section #dcb7;f77#a77;,a7 or #dcb7;h77#a77;,a71 whichever is applicable1 and ending on the day on which the rehabilitation plan or solvency plan is adopted1 7xi7 by striking #dcb7k77#i7 in paragraph 7#c77;,c77ii71 as so redesignated1 and inserting #dcb7n77#i71 and 7xii7 by striking or 7#c7 in paragraph 7#d71 as so redesignated4 7e7 ,adjustment of benefits 7#a7 ,in general ,section #dcb of the ,internal ,revenue ,code of #aihf1 as amended by this section1 is further amended-- 7,a7 by further redesignating subsections 7m7 and 7n71 as redesignated by subsection 7d71 as subsections 7n7 and 7o71 respectively1 7,b7 by redesignating paragraph 7#h7 of subsection 7f71 as redesignated by subsection 7a77#b71 as subsection 7m71 and 7,c7 by moving such subsection to the position immediately after subsection 7l74 7#b7 ,clerical and conforming amendments 7,a7 ,the heading of subsection 7m7 of section #dcb of such ,code1 as redesignated by paragraph 7#a71 is amended to read as follows3 7m7 ,adjustment of benefits 4 7,b7 ,the following provisions of such subsection 7m7 are amended as follows3 7i7 ,subparagraphs 7,a71 7,b71 and 7,c7 are redesignated as paragraphs 7#a71 7#b71 and 7#d71 respectively1 and moved #b ems to the left4 7ii7 ,clauses 7i71 7ii71 7iii71 and 7iv7 of paragraph 7#a7 7as so redesignated7 are redesignated as subparagraphs 7,a71 7,b71 7,c71 and 7,d71 respectively1 and moved #b ems to the left4 7iii7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#a77;,d7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7iv7 ,clauses 7i71 7ii71 and 7iii7 of paragraph 7#d7 7as so redesignated7 are redesignated as subparagraphs 7,a71 7,b71 and 7,c71 respectively1 and moved #b ems to the left1 and the flush sentence at the end of subparagraph 7,c7 7as so redesignated7 is moved #b ems to the left4 7v7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#d77;,a7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7vi7 ,subclauses 7,i7 and 7,,ii7 of paragraph 7#d77;,b7 7as so redesignated7 are redesignated as clauses 7i7 and 7ii71 respectively1 and moved #b ems to the left4 7vii7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#d77;,c7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7viii7 ,paragraph 7#a77;,a71 as so redesignated1 is amended by striking subparagraph 7,c7 and inserting paragraph 7#d74 7ix7 ,paragraph 7#a77;,b71 as so redesignated1 is amended by striking clause 7iv77,,iii7 and inserting subparagraph 7,d77iii74 7x7 ,paragraph 7#a77;,d71 as so redesignated1 is amended by striking this paragraph and inserting this subsection4 7xi7 ,paragraph 7#b71 as so redesignated1 is amended-- 7,i7 by striking subparagraph 7,a77iv77,,iii7 and inserting paragraph 7#a77;,d77iii71 and 7,,ii7 by striking this paragraph and inserting this subsection4 7xii7 ,paragraph 7#d77;,a71 as so redesignated1 is amended by striking subparagraph 7,a7 and inserting paragraph 7#a74 7xiii7 ,paragraphs 7#d77;,b7 and 7#d77;,c71 as so redesignated1 are each amended by striking clause 7i7 each place it appears and inserting subparagraph 7,a74 7xiv7 ,the last sentence of paragraph 7#d77;,c71 as so redesignated1 is amended-- 7,i7 by striking subclause 7,i7 and inserting clause 7i71 and 7,,ii7 by striking this subparagraph and inserting this paragraph4 7#c7 ,application to all plans in endangered1 critical1 or declining status 7,a7 ,in general ,subparagraph 7,a7 of section #dcb7m77#a7 of such ,code1 as redesignated and amended by this section1 is further amended-- 7i7 by striking the plan sponsor shall and inserting the plan sponsor of a multiemployer plan in endangered1 critical1 or declining status may1 and 7ii7 by striking paragraph 7#a77;,b77i7 and inserting subsection 7d77#a77;,b71 7f77#a77;,b71 or 7h77#a77;,b71 whichever is applicable4 7,b7 ,conforming amendment ,subparagraph 7,b7 of section #dcb7m77#a7 of such ,code1 as redesignated and amended by this section1 is further amended by striking critical both places it appears and inserting endangered1 critical1 or declining4 7#d7 ,additional adjustable benefits 7,a7 ,in general ,subparagraph 7,d7 of section #dcb7m77#a7 of such ,code1 as redesignated by this section1 is amended-- 7i7 by inserting 1 including early reduction factors which are not provided on an actuarially equivalent basis1 after 7i77 in clause 7ii71 as so redesignated1 7ii7 by striking and at the end of clause 7ii7 7as so redesignated71 7iii7 by striking that would not be eligible and all that follows through the period in clause 7iii7 7as so redesignated7 and inserting which were adopted 7or1 if later1 took effect7 less than #abj months before the first day of the first plan year in which the plan was in endangered1 critical1 or declining status11 and 7iv7 by adding at the end the following new clauses3 7iv7 any one-time bonus payment or thirteenth check provision1 and 7v7 benefits granted for periods of service prior to participation in the plan4 4 7,b7 ,conforming amendments 7i7 ,subparagraph 7,b7 of section #dcb7m77#a7 of such ,code1 as redesignated and amended by this section1 is further amended by striking subparagraph 7,d77iii7 and inserting clause 7iii71 7iv71 or 7v7 of subparagraph 7,d74 7ii7 ,paragraph 7#b7 of section #dcb7m7 of such ,code1 as amended by paragraph 7#b77;,b71 is further amended by striking paragraph 7#a77;,d77iii7 and inserting clause 7iii71 7iv71 or 7v7 of paragraph 7#a77;,d74 7#e7 ,rules relating to suspension of benefits upon return to work ,subsection 7m7 of section #dcb of such ,code1 as redesignated and amended by this section1 is further amended by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,rules relating to suspension of benefits upon return to work ,the plan sponsor of a multiemployer plan in endangered1 critical1 or declining status may amend rules regarding the suspension of a participant's benefits upon a return to work after commencement of benefits1 or the commencement of benefits after normal retirement age 7including in the case of continued employment after normal retirement age74 ,any such changes shall apply only to future payments of benefits4 4 7#f7 ,additional conforming amendments 7,a7 ,clause 7iii7 of section #dcb7;b77#e77;,d7 of such ,code1 as redesignated and amended by this section1 is further amended-- 7i7 by striking critical in the heading and inserting endangered1 critical1 or declining1 7ii7 by striking critical status both places it appears and inserting endangered1 critical1 or declining status1 and 7iii7 by striking subsection 7f77#h7 in subclause 7,i7 and inserting subsection 7m77#a77;,d74 7,b7 ,subsection 7j7 of section #dcb of such ,code1 as amended by subsection 7d71 is further amended by striking 7f77#h71 7g71 or 7i7 and inserting 7e71 7g71 7i71 or 7m74 7f7 ,elections ,to be in critical or endangered status 7#a7 ,in general ,paragraph 7#f7 of section #dcb7;b7 of the ,internal ,revenue ,code of #aihf1 as redesignated and amended by this section1 is further amended-- 7,a7 by striking is not in critical status in subparagraph 7,a7 and inserting is not in critical or declining status1 7,b7 by striking but that is projected in subparagraph 7,a7 and inserting 8but-- 7i7 that is projected 1 7,c7 by striking #e plan years may1 not later than in subparagraph 7,a7 and inserting 8#e plan years1 or 7ii7 that is in endangered status and is not reasonably projected to be able to emerge from endangered status within the funding improvement period under the funding improvement plan in effect1 may1 not later than 1 and 7,d7 by striking under paragraph 7#c7 in subparagraph 7,b7 and inserting under paragraph 7#c7 or for endangered status under paragraph 7#b74 7#b7 ,election to be in endangered status ,subsection 7b7 of section #dcb of such ,code1 as so redesignated and amended1 is further amended by adding at the end the following new paragraph3 7#h7 ,election to be in endangered status ,notwithstanding paragraph 7#b7-- 7,a7 the plan sponsor of a multiemployer plan that is not in endangered1 critical1 or declining status for a plan year but that is projected by the plan actuary1 pursuant to the determination under paragraph 7#e71 to be in endangered status in any of the #e succeeding plan years1 may1 not later than #cj days after the date of the certification under paragraph 7#e77;,a71 elect to be in endangered status effective for the current plan year1 7,b7 the plan year in which the plan sponsor elects to be in endangered status under subparagraph 7,a7 shall be treated for purposes of this section as the first year in which the plan is in endangered status1 regardless of the date on which the plan first satisfies the criteria for endangered status under paragraph 7#b71 and 7,c7 a plan that is in endangered status under this paragraph shall not emerge from endangered status unless the plan's actuary certifies under paragraph 7#e77;,a7 that the plan is no longer in endangered status and is not in critical or declining status4 4 7g7 ,amendments relating to funding improvement plan 7#a7 ,in general ,paragraph 7#a7 of section #dcb7;d7 of the ,internal ,revenue ,code of #aihf1 as redesignated and amended by this section1 is further amended-- 7,a7 by striking the last sentence1 and 7,b7 in subparagraph 7,b71 by striking funding improvement plan-- and all that follows and inserting 8funding improvement plan1 shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the accrual rate as of the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj7 based on the contribution rate in effect as of the first day of the plan year in which the plan enters endangered status1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 4 7#b7 ,funding improvement plan ,paragraph 7#c7 of section #dcb7;d7 of such ,code1 as so redesignated and amended1 is further amended-- 7,a7 by striking ,for purposes of this section-- and all that follows through which consists of in subparagraph 7,a7 and inserting ,for purposes of this section1 a funding improvement plan is a plan which consists of1 and 7,b7 by striking formulated to provide and all that follows and inserting 8formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to-- 7,a7 enable the plan to no longer be in endangered status 7as certified by the plan actuary7 by the end of the funding improvement period1 and 7,b7 avoid any accumulated funding deficiencies during the funding improvement period 7taking into account any extension of amortization periods under section #dca7;d774 4 7#c7 ,funding improvement period ,paragraph 7#d7 of section #dcb7;d7 of such ,code1 as so redesignated and amended1 is further amended by striking subparagraph 7,b7 and inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,new period based on adverse experience 7i7 ,in general ,if the plan's actuary determines necessary based on adverse plan experience1 the plan sponsor may provide for a new #aj-year period as of the first day of any plan year in the original funding improvement period1 but only if the plan is still projected to meet the requirements of the funding improvement plan and emerge from endangered status at the end of the new funding improvement period4 7ii7 ,limitation ,a plan sponsor may provide a new #aj-year period under clause 7i7 not more than #a time in any #bj-;consecutive-year period1 unless the plan sponsor submits to the ,secretary an application for an additional new period4 ,such application shall include a certification that the plan is projected to emerge from endangered status in the proposed new #aj-year period and a description of key assumptions1 to be specified in regulations promulgated by the ,secretary in consultation with the ,pension ,benefit ,guaranty ,corporation4 4 7#d7 ,conforming amendments 7,a7 ,subparagraph 7,c7 of section #dcb7;d77#d7 of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking critical status both places it appears in clauses 7i7 and 7ii7 and inserting critical or declining status1 7ii7 by striking rehabilitation period in clause 7ii7 and inserting rehabilitation or solvency attainment period1 and 7iii7 by striking critical status in the heading of clause 7ii7 and inserting critical or declining status4 7,b7 ,subsection 7d7 of section #dcb of such ,code1 as so redesignated and amended1 is further amended by striking paragraph 7#e7 and by redesignating paragraphs 7#f71 7#g71 and 7#h7 as paragraphs 7#e71 7#f71 and 7#g71 respectively4 7,c7 ,paragraph 7#f7 of section #dcb7;d7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking 7#a77;,b77i77,i7 in subparagraph 7,a7 and inserting 7#a77;,b77i71 and 7ii7 by striking paragraph 7#f77;,b7 in subparagraph 7,b77ii7 and inserting paragraph 7#e77;,b74 7,d7 ,paragraph 7#b7 of section #dcb7;d7 of such ,code1 as so redesignated1 is amended by inserting 1 except that the next update of the funding improvement plan shall fulfill the requirement of paragraph 7#a77;,b77i7 after for a preceding plan year4 7h7 ,amendments relating to rehabilitation plan 7#a7 ,in general ,paragraph 7#a7 of section #dcb7;f7 of the ,internal ,revenue ,code of #aihf1 as redesignated and amended by this section1 is further amended-- 7,a7 by striking the last #b sentences1 and 7,b7 in subparagraph 7,b71 by striking rehabilitation plan-- and all that follows and inserting 8rehabilitation plan1 shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the accrual rate as of the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj7 based on the contribution rate in effect as of the first day of the plan year in which the plan enters critical status1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 ,in the case of a plan adopting a rehabilitation plan described in paragraph 7#c77;,a77ii71 no schedule provided to or adopted by the bargaining parties shall provide for a monthly benefit accrual rate in excess of the rate described in subparagraph 7,b77i77,,ii74 4 7#b7 ,rehabilitation plan 7,a7 ,in general ,subparagraph 7,a7 of section #dcb7;f77#c7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking and may include and all that follows through such actions in clause 7i71 7ii7 by inserting 1 while delaying insolvency for as long as possible and maximizing the income of the plan1 including income after insolvency before the period in clause 7ii71 and 7iii7 by striking 7#a77;,b77i7 in the last sentence and inserting 7#a77;,b74 7,b7 ,conforming amendments ,clause 7i7 of section #dcb7;f77#c77;,c7 of such ,code1 as so redesignated1 is amended-- 7i7 by striking 7#a77;,b77i7 in subclause 7,,ii7 and inserting 7#a77;,b71 and 7ii7 by striking the last sentence of paragraph 7#a7 and inserting paragraph 7#a77;,b77i74 7#c7 ,rehabilitation period 7,a7 ,in general ,subparagraph 7,a7 of section #dcb7;f77#d7 of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by striking ,the rehabilitation period and inserting ,except as otherwise provided in this subparagraph1 the rehabilitation period1 and 7ii7 by adding at the end the following3 ,if1 upon exhaustion of all reasonable measures1 the plan is not reasonably expected to emerge from critical status by the end of such #aj-year period1 the rehabilitation period shall be extended to take into account the projected date of emergence from critical status 7if the rehabilitation plan remained in effect until such date7 or the projected date of insolvency 7if applicable7 7unless the plan enters declining status744 7,b7 ,emergence from critical status ,subparagraph 7,b7 of section #dcb7;f77#d7 of such ,code1 as so redesignated and amended1 is further amended-- 7i7 by inserting and is not in declining status1 after the comma in clause 7i77,i71 7ii7 by striking subclause 7,,iii7 of clause 7i7 and inserting the following3 7,,iii7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is at least #ajj percent and is projected to increase after such date4 1 7iii7 by striking that-- and all that follows through regardless of whether in clause 7ii77,i7 and inserting that the plan meets the requirements of subclauses 7,,ii7 and 7,,iii7 of clause 7i71 regardless of whether1 and 7iv7 by striking unless-- and all that follows in clause 7ii77,,ii7 and inserting unless1 as of such plan year1 the plan fails to meet the requirements of subclause 7,,ii7 or 7,,iii7 of clause 7i744 7#d7 ,rules relating to benefit increases during rehabilitation period ,subparagraph 7,b7 of section #dcb7;g77#a7 of such ,code1 as so redesignated and amended1 is further amended by striking unless and all that follows and inserting unless the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a or to comply with other applicable law1 or the amendment provides for only a de minimis increase in the liabilities of the plan44 7#e7 ,conforming amendments 7,a7 ,paragraph 7#f7 of section #dcb7;f7 of such ,code1 as so redesignated1 is amended by striking the last sentence of paragraph 7#a7 and inserting paragraph 7#a77;,b77i74 7,b7 ,paragraph 7#b7 of section #dcb7;f7 of such ,code1 as so redesignated1 is amended by inserting 1 except that the next update of the rehabilitation plan shall fulfill the requirement of paragraph 7#a77;,b77i7 after for a preceding plan year4 7i7 ,actuarial assumptions 7#a7 ,in general ,subsection 7n7 of section #dcb of the ,internal ,revenue ,code of #aihf1 as redesignated by subsections 7a71 7d71 and 7e71 is amended-- 7,a7 by striking method in the heading and inserting method and assumptions1 and 7,b7 by adding at the end the following new paragraph3 7#aa7 ,actuarial assumptions 7,a7 ,in general ,the actuarial assumptions relied upon for purposes of this section by a plan actuary shall be individually reasonable and1 in the aggregate1 shall be reasonable and 7with the exception of assumptions regarding future contributions7 represent the actuary's best estimate of future plan experience1 within limitations prescribed by the ,secretary4 ,a plan actuary shall avoid conservatism or optimism in individual assumptions to the extent that they would result in a set of assumptions that is unreasonable in the aggregate4 7,b7 ,investment returns ,the investment return assumption for projecting plan assets may differ from the actuarial valuation interest rate4 ,in selecting the investment return assumption for projecting plan assets1 the plan actuary shall estimate the expected return of the plan's investments as currently invested and as expected to be invested in the future1 consistent with the plan's adopted investment policy1 if applicable4 ,it is reasonable for an actuary to expect that the plan's investment decisions will consider risk1 expected returns over time1 and expected future benefit payments4 ,the investment return assumption shall not exceed the interest rate used to determine past service liability under section #dca7;b77#f74 7,c7 ,contributions 7i7 ,in general ,the plan actuary shall develop assumptions for the projection of future contributions1 including assumptions regarding industry activity among contributing employers and contribution rates1 based on information provided by the plan sponsor1 which must act reasonably and in good faith4 ,the plan actuary shall certify the reasonableness of all assumptions4 7ii7 ,projected industry activity ,any projection of activity in the industry or industries covered by the plan1 including future covered employment and contribution levels1 shall be based on information provided by the plan sponsor acting reasonably and in good faith4 7iii7 ,future contribution base units 7,i7 ,declining contribution base units ,if recent experience of the plan has been declining contribution base units1 the plan actuary may assume future contribution base units will continue to decline at the same annualized trend as over the #e immediately preceding plan years1 unless the actuary determines that there have been significant changes that would make such assumption unreasonable4 7,,ii7 ,flat or increasing contribution base units ,if recent experience of the plan has been increasing1 or neither increasing nor decreasing1 contribution base units1 the plan actuary may assume future contribution base units will remain unchanged indefinitely1 unless the actuary determines that there have been significant changes that would make such assumption unreasonable4 7iv7 ,future contribution rates 7,i7 ,in general ,projections of contributions shall be based on the contribution rates consistent with the terms of collective bargaining and participation agreements currently in effect4 7,,ii7 ,future increases in accordance with correction plans ,if reasonable and applicable1 the plan actuary may assume future increases in contribution rates consistent with the adopted funding improvement plan1 rehabilitation plan1 or solvency plan4 7,,iii7 ,additional factors ,information provided by the plan sponsor to the plan actuary in setting the assumption regarding future increases in contribution rates shall take into account the ability of the participating employers to make contributions at the scheduled rates over time1 considering relevant factors such as projected industry activity1 the financial strength of participating employers1 market competition1 and the scheduled contribution rate to the plan relative to the overall wage package4 7,d7 ,assumptions for developing schedules ,all schedules under any funding improvement plan1 rehabilitation plan1 or solvency plan must be developed based on the same set of actuarial assumptions unless it would be unreasonable to do so1 taking into account the anticipated impact of the schedules on participant behavior and employer participation4 4 7#b7 ,additions to ,form #eejj ,schedule ,,mb ,subparagraph 7,b7 of section #dcb7;b77#e7 of such ,code1 as redesignated and amended by this section1 is further amended by adding at the end the following new clause3 7vi7 ,additional attachments ,the plan actuary shall attach to the certification required under subparagraph 7,a7-- 7,i7 documentation supporting the certification of status under subparagraph 7,a71 including projections of the funding standard account1 funded percentage1 and solvency of the plan1 7,,ii7 a clear description of the key assumptions used in performing the projections1 including investment returns1 contribution base units1 and contribution rates1 7,,iii7 a #e-year history of contributions1 including contribution base units1 average contribution rates1 and withdrawal liability payments1 and a comparison of such contribution base units1 rates1 and payments to projections made by the plan1 and 7,,iv7 an alternate projection of the funding standard account1 funded percentage1 and solvency1 based on the following assumptions3 7aa7 ,annual future investment returns on plan assets equal the actuarial interest rate assumption minus #a percent4 7bb7 ,future contribution base units projected using a trend equal to the lesser of-- 7,,aa7 the annualized trend of actual contribution base units over the #e preceding plan years1 and 7,,bb7 no change in future contribution base units4 7cc7 ,no increases in future contribution rates beyond those consistent with the collective bargaining agreements and participation agreements in effect for the plan year4 7dd7 ,the withdrawal from the plan of the employer which has contributed the greatest total amount of contributions over the #e preceding plan years1 if such employer has contributed at least #aj percent of the total contributions to the plan over such #e plan years and such employer has a below investment grade credit rating 7but only if obtaining the credit rating of such employer is not an undue burden74 7ee7 ,if such credit rating cannot be obtained without undue burden1 the withdrawal of the employer which has contributed the greatest total amount of contributions over the #e preceding plan years1 if such employer has contributed at least #aj percent of the total contributions to the plan over such #e plan years without regard to collection of any withdrawal liability4 7ff7 ,if no employer has contributed at least #aj percent of the total contributions to the plan over the #e preceding plan years1 the withdrawal of the employer which contributed the greatest total amount of contributions for the current plan year1 without regard to collection of any withdrawal liability1 unless the employer contributed less than #a percent of the total contributions to the plan for such plan year4 7gg7 ,other assumptions consistent with the projection based on the actuary's best estimate assumptions4 4 7#c7 ,conforming amendments 7,a7 ,section #dcb7;b77#e77;,b77i7 of such ,code1 as redesignated by this section1 is amended by striking assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,b7 ,section #dcb7;b77#e77;,a77vi7 of such ,code1 as amended by this section and section #cba1 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,c7 ,paragraph 7#c7 of section #dcb7;d7 of such ,code1 as amended by subsection 7g71 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,d7 ,clause 7i7 of section #dcb7;f77#c77;,a7 of such ,code1 as amended by subsection 7h71 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,e7 ,section #dcb7;h77#c7 of such ,code1 as added by subsection 7d71 is amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7j7 ,conforming amendments relating to legacy plans 7#a7 ,subsections 7a77#c77;,f71 7b77#a77;,b77i71 7b77#a77;,h77iv71 and 7d77#f77;,a7 of section #daa of the ,internal ,revenue ,code of #aihf1 as amended by title ,v1 are each further amended by striking #dcb7;f7 each place it appears and inserting #dcb7;h77#h74 7#b7 ,sections #dca7;b77#aj71 #ddj;,a7d77#b77;,d71 and #ddj;,a7d77#d7 of such ,code1 as added by title ,v1 are each amended by striking endangered or critical and inserting endangered1 critical1 or declining4 7#c7 ,section #dcg7;b77#a7 of such ,act1 as so added1 is amended by striking endangered or critical both places it appears and inserting endangered1 critical1 or declining4 7#d7 ,sections #dcg7;b77#e77;,b7 and #ddj;,a7b77#a77;,a7 of such ,code1 as so added1 are each amended by striking endangered or critical and inserting endangered1 critical1 or declining4 7#e7 ,sections #dcg7;b77#a71 #dcg7;b77#e77;,b71 #ddj;,a7b77#a77;,a71 and #ddj;,a7e77#c7 of such ,code1 as so added1 are each amended by striking #dcb7;b77#d7 and inserting #dcb7;b77#e74 7#f7 ,sections #dch7;b77#e7 and #ddj;,a7d77#b77;,a7 of such ,code1 as so added1 are each amended by striking #dcb7;b77#d77;,b7 and inserting #dcb7;b77#e77;,b74 7#g7 ,section #dch7;b77#a7 of such ,code1 as so added1 is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,d7 consistent with the principles of subparagraphs 7,b71 7,c71 and 7,d7 of section #dcb7n77#aa74 4 7#h7 ,section #dci7;a77#b77;,d7 of such ,code1 as so added1 is amended by striking #dcb7;f77#i77;,d77vi7 and inserting #dcb7;h77#h77;,d77vi74 7#i7 ,section #dci7;a77#c7 of such ,code1 as so added1 is amended by striking #dcb7;f77#h7 and inserting #dcb7m77#a77;,d74 7#aj7 ,section #ddj;,a7d77#b77;,d7 of such ,code1 as so added and amended1 is further amended by striking funding improvement or rehabilitation plan and inserting funding improvement1 rehabilitation1 or solvency plan4 7k7 ,effective date ,except as otherwise provided in subsection 7a77#g71 the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbj4 7l7 ,credit ratings ,no requirement of section #ici or #ici;,a of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#abd ,stat4 #ahhg2 #ae ,u4,s4,c4 #gho-#g note7 shall apply with respect to the amendment made by subsection 7i77#b74 #bab4 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7a7 ,rules applying to all multiemployer plans 7#a7 ,in general ,subsection 7a7 of section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7 is amended-- 7,a7 by striking a multiemployer plan in effect on ,july #af1 #bjjf-- and inserting any multiemployer plan--1 7,b7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as paragraphs 7#b71 7#c71 and 7#d71 respectively1 7,c7 by inserting before paragraph 7#b71 as so redesignated1 the following new paragraph3 7#a7 the rules of subsection 7c7 shall apply1 1 7,d7 by striking subsection 7c7 in paragraph 7#b77;,a71 as so redesignated1 and inserting subsection 7d71 7,e7 by striking subsection 7d7 in paragraph 7#b77;,b71 as so redesignated1 and inserting subsection 7e71 7,f7 by striking subsection 7e7 in paragraph 7#c77;,a71 as so redesignated1 and inserting subsection 7f71 7,g7 by striking subsection 7f7 in paragraph 7#c77;,b71 as so redesignated1 and inserting subsection 7g71 and 7,h7 by striking subsection 7e77#i7 in paragraph 7#d77;,b71 as so redesignated1 and inserting subsection 7f77#i74 7#b7 ,rules of immediate application ,section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe7 is amended-- 7,a7 by redesignating subsections 7c71 7d71 7e71 7f71 7g71 7h71 7i71 and 7j7 as subsections 7d71 7e71 7f71 7g71 7h71 7i71 7j71 and 7k71 respectively1 and 7,b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,rules applying to all multiemployer plans 7#a7 ,benefit increases 7,a7 ,increases by plan amendment ,the plan sponsor of any multiemployer plan shall not adopt a plan amendment which increases plan liabilities 7as determined as of the date of the adoption of the amendment7 due to any increase in benefits1 any change in the accrual rate of benefits1 or any change in the rate at which benefits become nonforfeitable1 unless-- 7i7 if the plan is in unrestricted status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that the increase in liabilities will not cause the plan to no longer be in unrestricted status1 7ii7 if the plan is in stable status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that any such increase or change in benefits will be paid from additional contributions not required by any collective bargaining agreement in effect as of the adoption of the amendment1 7iii7 if the plan is in endangered status as of the adoption of such amendment1 the plan actuary certifies in accordance with subsection 7b77#d7 that any such increase or change in benefits will be paid from additional contributions not contemplated in any current funding improvement plan1 or 7iv7 the increase or change in benefits is required by law or is a de minimis change4 7,b7 ,increases under critical or critical and declining status ,unless required as a condition of qualification under part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf or to comply with other applicable law1 in the case of a plan which is in critical or critical and declining status1 no increase in benefits1 change in the accrual rate of benefits1 or change in the rate at which benefits become nonforfeitable which increases plan liabilities shall take effect while the plan is in such status1 without regard to whether such increase or change would otherwise occur under the provisions of the plan1 unless the increase in plan liabilities due to the change is de minimis4 7#b7 ,contribution reductions ,the plan sponsor of any multiemployer plan shall not accept any collective bargaining agreement or participation agreement which reduces the rate of contributions under the plan for any participants1 suspends contributions with respect to any period of service1 or directly or indirectly excludes younger1 probationary1 or newly hired employees from participation in the plan1 unless-- 7,a7 the plan is in unrestricted status as of the adoption of such agreement and the plan actuary certifies in accordance with subsection 7b77#d7 that the reduction in contributions will not cause the plan to no longer be in unrestricted status1 7,b7 the reduction in contributions is accompanied by a reduction in future accruals for the affected participants1 and the plan actuary certifies in accordance with subsection 7b77#d7 that the combined effect of the changes in contributions and benefits is not projected to reduce the funded percentage of the plan in any year1 or 7,c7 subject to regulations issued by the ,secretary of the ,treasury1 the plan sponsor reasonably determines that the acceptance of such an agreement is in the best interests of plan participants and beneficiaries and that rejection of the agreement would have an adverse financial effect on the plan4 4 7#c7 ,stable and unrestricted plans ,subsection 7b7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe7 is amended-- 7,a7 by striking endangered and critical in the heading1 7,b7 by redesignating paragraphs 7#a71 7#b71 7#c71 7#d71 7#e71 and 7#f7 as paragraphs 7#b71 7#c71 7#d71 7#e71 7#f71 and 7#g71 respectively1 and 7,c7 by inserting before paragraph 7#b7 the following new paragraph3 7#a7 ,stable and unrestricted status 7,a7 ,stable ,a multiemployer plan is in stable status for a plan year if1 as determined by the plan actuary under paragraph 7#d71 the plan is not in unrestricted status for the plan year1 is not in endangered1 critical1 or critical and declining status for the plan year1 and is not described in paragraph 7#f74 7,b7 ,unrestricted ,a multiemployer plan is in unrestricted status for a plan year if1 as determined by the plan actuary under paragraph 7#d7-- 7i7 the plan is not in endangered1 critical1 or critical and declining status for the plan year1 7ii7 the plan is not described in paragraph 7#f71 and 7iii7 as of the beginning of the plan year-- 7,i7 the plan's current liability funded percentage for such plan year is at least #gj percent and the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is at least #aae percent1 or 7,,ii7 the plan's current liability funded percentage for such plan year is at least #hj percent4 7,c7 ,current liability funded percentage ,for purposes of this section1 the term current liability funded percentage means the percentage equal to a fraction the numerator of which is the value of plan assets 7as determined for purposes of section #cjd7;c77#f77;,a77ii77,,ii77 and the denominator of which is the current liabilities of the plan 7as defined in section #cjd7;c77#f77;,d774 4 7#d7 ,amendment to annual certification by plan actuary ,subparagraph 7,a7 of paragraph 7#d7 7as redesignated by paragraph 7#c77 of section #cje7;b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77 is amended by inserting whether or not the plan is in unrestricted or stable status for such plan year1 in clause 7i7 before whether or not the plan is in endangered status4 7#e7 ,conforming and technical amendments 7,a7 ,technical correction ,section #cje7;b77#c77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#c77;,b77 is amended by redesignating the clause 7iv7 relating to projections of critical and declining status1 as added by section #bja7;a77#e7 of the ,consolidated and ,further ,continuing ,appropriations ,act1 #bjae1 as clause 7v71 and by moving such clause to the position immediately after clause 7iv74 7,b7 ,conforming amendments 7i7 ,paragraphs 7#b7 and 7#c7 of section #cje7;b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b771 as redesignated by paragraph 7#c71 are each amended by striking paragraph 7#c7 and inserting paragraph 7#d74 7ii7 ,section #cje7;b77#b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#b771 as so redesignated and amended1 is further amended by striking paragraph 7#e7 and inserting paragraph 7#f74 7iii7 ,section #cje7;b77#d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#d771 as so redesignated1 is amended-- 7,i7 by striking paragraph 7#d7 in subparagraph 7,b77iv7 thereof and inserting paragraph 7#e71 7,,ii7 by striking subsection 7e77#i7 both places it appears in subparagraph 7,b77v71 as redesignated by subparagraph 7,a71 and inserting subsection 7f77#i71 7,,iii7 by striking subsection 7e77#c77;,a77ii7 in subparagraph 7,b77v71 as so redesignated1 and inserting subsection 7f77#c77;,a77ii71 7,,iv7 by striking subsection 7e7 in subparagraph 7,b77v71 as so redesignated1 and inserting subsection 7f71 7,v7 by striking paragraph 7#d7 each place it appears in subparagraphs 7,d77i7 and 7,d77v7 thereof and inserting paragraph 7#e71 7,,vi7 by striking subsection 7e77#h7 in subparagraph 7,d77iii77,i7 thereof and inserting subsection 7f77#h71 7,,vii7 by striking paragraph 7#e7 in subparagraph 7,d77iii7 thereof and inserting paragraph 7#f71 and 7,,viii7 by striking 7iii7 ,in the case of in subparagraph 7,d77iii7 thereof and inserting 7iii7 ,special rule4--4 7iv7 ,section #cje7;b77#e7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e771 as redesignated by paragraph 7#c71 is amended-- 7,i7 by striking paragraph 7#b7 and inserting paragraph 7#c71 7,,ii7 by striking paragraph 7#c77;,b77iv7 and inserting paragraph 7#d77;,b77iv71 7,,iii7 by striking paragraph 7#c7 in subparagraph 7,a7 thereof and inserting paragraph 7#d71 7,,iv7 by striking paragraph 7#c77;,a7 in subparagraph 7,a7 thereof and inserting paragraph 7#d77;,a71 7,v7 by striking paragraph 7#b7 in subparagraph 7,b7 thereof and inserting paragraph 7#c71 and 7,,vi7 by striking subsection 7e77#d77;,b7 in subparagraph 7,c7 thereof and inserting subsection 7f77#d77;,b74 7v7 ,section #cje7;b77#f77;,a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#f77;,a771 as so redesignated1 is amended-- 7,i7 by striking paragraph 7#c77;,a7 and inserting paragraph 7#d77;,a71 7,,ii7 by striking paragraph 7#a77;,a7 and inserting paragraph 7#b77;,a71 and 7,,iii7 by striking paragraph 7#a77;,b7 and inserting paragraph 7#b77;,b74 7vi7 ,section #cje7;b77#g7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#g771 as so redesignated1 is amended by striking paragraph 7#b7 and inserting paragraph 7#c74 7vii7 ,paragraphs 7#a77;,a71 7#d77;,a77ii71 7#d77;,c77i71 7#d77;,c77ii71 7#d77;,d71 7#e77;,a77i71 7#e77;,b71 and 7#h7 of subsection 7d71 and subsections 7e77#b71 7f77#a77;,a71 7f77#d77;,b77i71 7f77#d77;,b77ii77,i71 7f77#e71 and 7g77#c7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as respectively redesignated by paragraph 7#b71 are each amended by striking subsection 7b77#c77;,a7 and inserting subsection 7b77#d77;,a74 7viii7 ,section #cje7;d77#c77;,a77i77,i7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d77#c77;,a77i77,i771 as so redesignated1 is amended by striking paragraph 7b77#c7 and inserting subsection 7b77#d74 7ix7 ,section #cje7;d77#d77;,d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d77#d77;,d771 as so redesignated1 is amended by striking subsection 7d7 and inserting subsection 7e74 7x7 ,section #cje7;e7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;e771 as so redesignated1 is amended to read as follows3 7e7 ,rules for operation of plan during adoption and improvement periods ,a plan may not be amended after the date of the adoption of a funding improvement plan under subsection 7d7 so as to be inconsistent with the funding improvement plan or the requirements of subsection 7c74 4 7xi7 ,clauses 7i77,i7 and 7ii77,i7 of section #cje7;f77#d77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#d77;,b771 as so redesignated1 are each amended by striking subsection 7b77#b7 and inserting subsection 7b77#c74 7xii7 ,subsections 7f77#h77;,a77ii7 and 7g77#b77;,a7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated1 are each amended by striking subsection 7b77#c77;,d7 and inserting subsection 7b77#d77;,d74 7xiii7 ,section #cje7;f77#i77;,j7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,j771 as so redesignated1 is amended-- 7,i7 by striking subsection 7b77#c7 and inserting subsection 7b77#d71 and 7,,ii7 by striking paragraphs 7#a7 and 7#b7 in clause 7i7 thereof and inserting paragraphs 7#b7 and 7#c74 7xiv7 ,subparagraphs 7,a7 and 7,b7 of section #cje7;g77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;g77#a771 as so redesignated1 are each amended by striking subsection 7e7 and inserting subsection 7f74 7xv7 ,paragraph 7#b77;,a7 of section #cje7;g7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;g771 as so redesignated1 is amended by striking 7b77#c77;,d7 and inserting 7b77#d77;,d74 7xvi7 ,section #cje7;h7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;h771 as so redesignated1 is amended-- 7,i7 by striking subsection 7e77#h7 or 7f7 in paragraph 7#a7 thereof and inserting subsection 7f77#h7 or 7g71 7,,ii7 by striking subsection 7e77#i7 in paragraph 7#a7 thereof and inserting subsection 7f77#i71 7,,iii7 by striking subsection 7e77#g7 in paragraph 7#b7 thereof and inserting subsection 7f77#g71 and 7,,iv7 by striking rehabilitation plan and all that follows in paragraph 7#c77;,b7 thereof and inserting rehabilitation plan4 ,the preceding sentence shall not apply to any increase in contribution requirements due to increased levels of work1 employment1 or periods for which compensation is provided1 except to the extent such an increase is used to provide an increased accrual rate of benefits or change in the rate at which benefits become nonforfeitable which increases plan liabilities44 7xvii7 ,section #cje7;i7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;i771 as so redesignated1 is amended-- 7,i7 by striking subsection 7c7 and inserting subsection 7d71 and 7,,ii7 by striking subsection 7e7 and inserting subsection 7f74 7xviii7 ,section #cje7;j77#b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;j77#b771 as so redesignated1 is amended by striking subsections 7c7 and 7e7 and inserting subsections 7d7 and 7f74 7xix7 ,section #aja7;f77#b77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajba7;f77#b77;,b77 is amended-- 7,i7 by striking #cje7;i7 in clause 7i77,,ii7 and inserting #cje7k71 and 7,,ii7 by striking #cje7;i77#h7 in clause 7ii77,,ii7 and inserting #cje7k77#h74 7xx7 ,section #ajc7;f77#a77;,b77ii7 of such ,act 7#bi ,u4,s4,c4 #ajbc7;f77#a77;,b77ii77 is amended by striking #cje7;i77#b7 and inserting #cje7k77#b74 7xxi7 ,section #cjb7;b77#c7 of such ,act 7#bi ,u4,s4,c4 #ajhb7 is amended by striking section #cje7;e7 and inserting section #cje7;f74 7xxii7 ,section #dbca7;e77#b77;,a7 of such ,act 7#bi ,u4,s4,c4 #adaa7;e77#b77;,a77 is amended by striking section #cje7;b77#d7 and inserting #cje7;b77#g74 7xxiii7 ,section #dbcc of such ,act 7#bi ,u4,s4,c4 #adac7 is amended-- 7,i7 by striking #cje7;e77#i7 each place it appears in subsections 7b77#b7 and 7e77#a77;,a7 and inserting #cje7;f77#i71 and 7,,ii7 by striking #cje7;e77#i77;,e77vi7 in subsection 7e77#b7 and inserting #cje7;f77#i77;,e77vi74 7xxiv7 ,section #dbde of such ,act 7#bi ,u4,s4,c4 #adbf71 as amended by this ,act1 is amended-- 7,i7 by striking #cje7;b77#b711 in subsection 7c77#a71 as redesignated by section #aab1 and inserting #cje7;b77#c711 7,,ii7 by striking #cje7;b77#b7 each place it appears in subsections 7c77#b71 7d77#a71 and 7d77#b71 as so redesignated1 and inserting #cje7;b77#c71 and 7,,iii7 by striking #cje7;e77#i7 in subsection 7f71 as so redesignated1 and inserting #cje7;f77#i74 7xxv7 ,the heading of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe7 is amended by striking in endangered status or critical status4 7#f7 ,withdrawal liability determination for plans emerging from endangered or critical status ,section #cje7;h7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;h771 as redesignated by paragraph 7#b7 and as amended by paragraph 7#e71 is further amended by striking paragraph 7#d7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,emergence from endangered or critical status 7,a7 ,in general ,in the case of increases in the contribution rate 7or other increases in contribution requirements unless due to increased levels of work1 employment1 or periods for which compensation is provided7 disregarded pursuant to paragraph 7#c71 this subsection shall cease to apply as of the later of-- 7i7 the end of the first plan year following the plan year in which the plan is no longer in endangered or critical status1 or 7ii7 the end of the plan year which includes the expiration date of the first collective bargaining agreement requiring plan contributions which expires after the plan is no longer in endangered or critical status4 7,b7 ,highest contribution rate ,notwithstanding subparagraph 7,a71 once the plan emerges from endangered or critical status-- 7i7 increases in the contribution rate disregarded pursuant to paragraph 7#c7 shall continue to be disregarded in determining the highest contribution rate under section #dbai7;c7 for plan years during which the plan was in endangered or critical status1 and 7ii7 the highest contribution rate for purposes of such section shall be the greater of-- 7,i7 the sum of-- 7aa7 the employer's contribution rate as of the later of the last day of the last plan year ending before ,december #ca1 #bjad1 and the last day of the plan year for which the employer first had an obligation to contribute to the plan1 and 7bb7 any contribution increases determined in accordance with this section after such later date and before the date the employer withdraws from the plan1 or 7,,ii7 the highest contribution rate for any plan year after the plan year which includes the earlier of-- 7aa7 the expiration date of the first collective bargaining agreement applicable to the withdrawing employer requiring plan contributions which expires after the plan is no longer in endangered or critical status1 or 7bb7 the date as of which the withdrawing employer negotiated a contribution rate effective after the plan year in which the plan is no longer in endangered or critical status4 4 7#g7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act4 7b7 ,determination of endangered status ,paragraph 7#b7 of section #cje7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;b771 as redesignated by subsection 7a77#c71 is amended to read as follows3 7#b7 ,endangered status ,a multiemployer plan is in endangered status for a plan year if1 as determined by the plan actuary under paragraph 7#e71 the plan is not in critical or declining status for the plan year and is not described in paragraph 7#g71 and1 as of the beginning of the plan year-- 7,a7 the plan's funded percentage for such plan year is less than #hj percent1 7,b7 the plan is projected to have an accumulated funding deficiency for any of the #i succeeding plan years1 taking into account any extension of amortization periods under section #cjd7;d71 or 7,c7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is less than #ajj percent4 4 7c7 ,determination of critical status ,paragraph 7#c7 of section #cje7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;b771 as redesignated by subsection 7a77#c71 is amended to read as follows3 7#c7 ,critical status 7,a7 ,in general ,a multiemployer plan is in critical status for a plan year if1 as determined by the plan actuary under paragraph 7#e71 the plan is not in declining status for the plan year and1 as of the beginning of the plan year-- 7i7 the plan's funded percentage is less than #fe percent1 7ii7 the plan has an accumulated funding deficiency for the plan year1 or is projected to have such an accumulated funding deficiency for any of the #f succeeding plan years1 taking into account any extension of amortization periods under section #cjd7;d71 or 7iii7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is less than #hj percent4 7,b7 ,original plans ,notwithstanding subparagraph 7,a71 a multiemployer plan which is an original plan pursuant to section #dbcc;,a7d77#c7 shall be treated as being in critical status for the period of #ae consecutive plan years beginning with the plan year that includes the date of the partition under section #dbcc;,a4 4 7d7 ,declining status 7#a7 ,in general 7,a7 ,the following provisions of section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7 are each amended by striking critical and declining each place it appears and inserting declining3 7i7 ,subsection 7a77#d7 7as redesignated by subsection 7a77#a774 7ii7 ,subparagraphs 7,a7 and 7,b77i7 of subsection 7b77#a71 as added by subsection 7a77#c74 7iii7 ,subsection 7b77#d77;,b77v7 7as redesignated by subsection 7a77#c774 7iv7 ,the heading of clause 7v7 of subsection 7b77#d77;,b71 as redesignated by subsection 7a77#c74 7v7 ,paragraph 7#a77;,b71 and the heading of such paragraph 7#a77;,b71 of subsection 7c71 as added by subsection 7a77#b74 7vi7 ,the heading of paragraph 7#i7 of subsection 7f7 7as redesignated by subsection 7a77#b774 7vii7 ,subparagraphs 7,a71 7,c71 7,g77i71 and 7,j7 of subsection 7f77#i7 7as so redesignated74 7viii7 ,subsection 7h77#a7 7as so redesignated74 7,b7 ,subsections 7c71 as amended by section #bba1 and 7e77#b77;,a71 as amended by this section1 of section #dbca of such ,act 7#bi ,u4,s4,c4 #adaa7;e77#b77;,a77 are each further amended by striking critical and declining status and inserting declining status4 7,c7 ,section #dbcc7;b77#a7 of such ,act 7#bi ,u4,s4,c4 #adac7;b77#a77 is amended by striking critical and declining status and inserting declining status4 7,d7 ,section #dbde7;f7 of such ,act 7#bi ,u4,s4,c4 #adbf71 as amended by section #aab and subsection 7a71 is further amended by striking critical and declining status and inserting declining status4 7#b7 ,determination of declining status 7,a7 ,in general ,subsection 7b7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe7 is amended-- 7i7 by striking paragraph 7#g71 as redesignated by subsection 7a77#c71 7ii7 by redesignating paragraphs 7#d71 7#e71 and 7#f71 as so redesignated1 as paragraphs 7#e71 7#f71 and 7#g71 respectively1 and 7iii7 by inserting after paragraph 7#c71 as so redesignated1 the following new paragraph3 7#d7 ,declining status ,a multiemployer plan is in declining status for a plan year if-- 7,a7 as determined by the plan actuary under paragraph 7#e71 as of the beginning of the plan year the plan is projected to become insolvent within the plan year or any of the #bi succeeding plan years1 7,b7 the plan is otherwise in critical status for the plan year as determined by the plan actuary under paragraph 7#e71 and the plan sponsor determines that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status within the next #cj plan years1 or 7,c7 the plan has a funded percentage for the plan year which is greater than the projected funded percentage as of the first day of the #aeth succeeding plan year1 unless the funded percentage for the plan year is #ajj percent or greater and the projected funded percentage as of the first day of such #aeth succeeding plan year is less than #ajj percent4 4 7,b7 ,conforming amendments 7i7 ,paragraph 7#a7 of section #cje7;b7 of such ,act 7#bi ,u4,s4,c4 #ajhe71 as added by subsection 7a77#c71 is amended-- 7,i7 by striking paragraph 7#d7 each place it appears in subparagraphs 7,a7 and 7,b7 and inserting paragraph 7#e71 and 7,,ii7 by striking paragraph 7#f7 each place it appears in subparagraphs 7,a7 and 7,b7 and inserting paragraph 7#g74 7ii7 ,subsection 7c7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as added by subsection 7a77#b71 is amended by striking 7b77#d7 each place it appears in paragraphs 7#a77;,a77i71 7#a77;,a77ii71 7#a77;,a77iii71 7#b77;,a71 and 7#b77;,b7 and inserting 7b77#e74 7iii7 ,section #cje7;b77#e7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e771 as further redesignated by subparagraph 7,a7 and as amended by section #cba and subsection 7a71 is further amended-- 7,i7 by striking paragraph 7#e7 in subparagraph 7,b77iv7 thereof and inserting paragraph 7#f71 7,,ii7 by striking paragraph 7#e7 each place it appears in subparagraphs 7,d77i7 and 7,d77vi7 thereof and inserting paragraph 7#f71 and 7,,iii7 by striking paragraph 7#f7 in subparagraph 7,d77iv7 thereof and inserting paragraph 7#g74 7iv7 ,section #cje7;b77#f7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#f771 as so further redesignated and amended1 is further amended-- 7,i7 by striking paragraph 7#d77;,b77iv7 and inserting paragraph 7#e77;,b77iv71 7,,ii7 by striking paragraph 7#d7 in subparagraph 7,a7 thereof and inserting paragraph 7#e71 and 7,,iii7 by striking paragraph 7#d77;,a7 in subparagraph 7,a7 thereof and inserting paragraph 7#e77;,a74 7v7 ,section #cje7;b77#g77;,a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#g77;,a771 as so further redesignated and amended1 is further amended-- 7,i7 by striking paragraph 7#d77;,a7 and inserting paragraph 7#e77;,a71 and 7,,ii7 by striking either paragraph 7#b77;,a7 or paragraph 7#b77;,b7 and inserting any subparagraph of paragraph 7#b74 7vi7 ,section #cje7;b77#g77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#g77;,b771 as so further redesignated1 is amended by striking critical or endangered and inserting endangered1 critical1 or declining4 7vii7 ,paragraphs 7#a77;,a71 7#d77;,a77ii71 7#d77;,c77i71 7#d77;,c77ii71 7#d77;,d71 and 7#h7 of subsection 7d71 and subsections 7f77#a77;,a71 7f77#d77;,b77i71 7f77#d77;,b77ii77,i71 7f77#e71 and 7g77#c7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as redesignated and amended by subsection 7a71 are each further amended by striking subsection 7b77#d77;,a7 and inserting subsection 7b77#e77;,a74 7viii7 ,section #cje7;d77#c77;,a77i77,i7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d77#c77;,a77i77,i771 as so redesignated and amended1 is further amended by striking subsection 7b77#d7 and inserting subsection 7b77#e74 7ix7 ,subsections 7f77#h77;,a77ii7 and 7g77#b77;,a7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 are each further amended by striking subsection 7b77#d77;,d7 and inserting subsection 7b77#e77;,d74 7x7 ,section #cje7;f77#i77;,j7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,j771 as so redesignated and amended1 is further amended by striking subsection 7b77#d7 and inserting subsection 7b77#e74 7xi7 ,section #dbca7;e77#b77;,a7 of such ,act 7#bi ,u4,s4,c4 #adaa7;e77#b77;,a771 as amended by this section1 is further amended by striking #cje7;b77#g7 and inserting #cje7;b77#d74 7#c7 ,solvency plan 7,a7 ,in general ,paragraph 7#d7 7as redesignated by subsection 7a77#a7 and amended by paragraph 7#a77 of section #cje7;a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;a77 is amended-- 7i7 by redesignating subparagraph 7,b7 as subparagraph 7,d71 and 7ii7 by striking subparagraph 7,a7 and inserting before subparagraph 7,d7 7as so redesignated7 the following new subparagraphs3 7,a7 the plan sponsor shall adopt and implement a solvency plan in accordance with the requirements of subsection 7h71 7,b7 any rehabilitation plan in place as of the date the plan enters declining status shall continue to apply throughout the solvency plan adoption period1 7,c7 the requirements of subsection 7i7 and paragraphs 7#f7 and 7#g7 of subsection 7f7 shall apply during the solvency plan adoption period and the solvency attainment period1 and 4 7,b7 ,adoption of plan ,section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as amended by this section1 is further amended-- 7i7 by redesignating subsection 7l71 as added by title ,v of this ,act1 as subsection 7n71 and by further redesignating subsections 7h71 7i71 7j71 and 7k71 as redesignated by subsection 7a77#b71 as subsections 7j71 7k71 7l71 and 7m71 respectively1 and 7ii7 by inserting after subsection 7g71 as redesignated by subsection 7a77#b71 the following new subsections3 7h7 ,solvency plan must be adopted for multiemployer plans in declining status 7#a7 ,in general ,in any case in which a multiemployer plan is in declining status for a plan year1 the plan sponsor1 in accordance with this subsection-- 7,a7 shall adopt a solvency plan not later than #bdj days following the required date for the actuarial certification of declining status under subsection 7b77#e77;,a71 and 7,b7 within #cj days after the adoption of the solvency plan shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the current accrual rate7 based on the contribution rate in effect as of the later of the first day of the plan year in which the plan enters declining status or the date of a partition under section #dbcc;,a1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 ,no schedule provided to or adopted by the bargaining parties shall provide for a monthly benefit accrual rate in excess of the rate described in subparagraph 7,b77i77,,ii74 7#b7 ,exception for years after process begins ,paragraph 7#a7 shall not apply to a plan year if such year is in a solvency plan adoption period or solvency attainment period by reason of the plan being in declining status for a preceding plan year1 except that the next update of the solvency plan shall fulfill the requirement of paragraph 7#a77;,b77i74 ,for purposes of this section1 such preceding plan year shall be the initial determination year with respect to the solvency plan to which it relates4 7#c7 ,solvency plan ,for purposes of this section1 a solvency plan is a plan which consists of the actions1 including options or a range of options to be proposed to the bargaining parties1 formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to enable the plan to delay or avoid the projected insolvency4 7#d7 ,solvency attainment period ,for purposes of this section-- 7,a7 ,in general ,except as provided in subparagraph 7,b71 the solvency attainment period for any solvency plan adopted pursuant to this subsection is the period-- 7i7 beginning on the first day of the first plan year of the multiemployer plan beginning after the earlier of-- 7,i7 the second anniversary of the date of the adoption of the solvency plan1 or 7,,ii7 the expiration of the collective bargaining agreements in effect on the due date for the actuarial certification of declining status for the initial determination year under subsection 7b77#e77;,a7 and covering1 as of such due date1 at least #ge percent of the active participants in such plan1 and 7ii7 ending on the date the plan either emerges from declining status or becomes insolvent4 7,b7 ,coordination with changes in status 7i7 ,plans no longer in declining status ,if the plan's actuary certifies in accordance with subparagraph 7,c7 for a plan year in any solvency plan adoption period or solvency attainment period that the plan is no longer in declining status1 the solvency plan adoption period or solvency attainment period1 whichever is applicable1 shall end as of the date of such certification4 7ii7 ,plans in critical or endangered status ,if the plan's actuary certifies under subsection 7b77#e77;,a7 for the plan year described in clause 7i7 that the plan is in critical or endangered rather than declining status1 the provisions of subsections 7d7 and 7e71 or subsections 7f7 and 7g71 whichever are applicable1 shall be applied as if such plan year were an initial determination year1 except that the plan may not be amended in a manner inconsistent with the solvency plan in effect for the preceding plan year until a new funding improvement plan or rehabilitation plan1 whichever is applicable1 is adopted4 7,c7 ,emergence ,a plan in declining status shall remain in such status until a plan year for which the plan actuary certifies1 in accordance with subsection 7b77#e77;,a71 that the plan is not described in one or more of the subparagraphs in subsection 7b77#d7 as of the beginning of the plan year4 7#e7 ,updates to solvency plans and schedules 7,a7 ,solvency plan ,the plan sponsor shall annually update the solvency plan and shall file the update with the plan's annual report under section #ajd4 7,b7 ,schedules ,the plan sponsor shall annually update any schedule of contribution rates provided under this subsection to reflect the experience of the plan4 7,c7 ,duration of schedule ,a schedule of contribution rates provided by the plan sponsor and relied upon by bargaining parties in negotiating a collective bargaining agreement shall remain in effect for the duration of that collective bargaining agreement4 7#f7 ,imposition of schedule where failure to adopt solvency plan 7,a7 ,initial contribution schedule ,if-- 7i7 a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered declining status expires1 and 7ii7 after receiving one or more schedules from the plan sponsor under paragraph 7#a77;,b71 the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the solvency plan and a schedule from the plan sponsor1 the plan sponsor shall implement the schedule described in paragraph 7#a77;,b77i7 beginning on the date specified in subparagraph 7,c74 7,b7 ,subsequent contribution schedule ,if-- 7i7 a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a solvency plan 7or imposed under subparagraph 7,a77 expires while the plan is still in declining status1 and 7ii7 after receiving one or more updated schedules from the plan sponsor under paragraph 7#e77;,b71 the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated solvency plan and a schedule from the plan sponsor1 then the contribution schedule applicable under the expired collective bargaining agreement1 as updated and in effect on the date the collective bargaining agreement expires1 shall be implemented by the plan sponsor beginning on the date specified in subparagraph 7,c74 7,c7 ,date of implementation ,the date specified in this subparagraph is the date which is #ahj days after the date on which the collective bargaining agreement described in subparagraph 7,a7 or 7,b7 expires4 7#g7 ,solvency plan adoption period ,for purposes of this section1 the term solvency plan adoption period means the period beginning on the date of the certification under subsection 7b77#e77;,a7 for the initial determination year and ending on the day before the first day of the solvency attainment period4 7i7 ,rules for operation of plan during adoption and attainment periods 7#a7 ,compliance with solvency plan 7,a7 ,in general ,a plan may not be amended after the date of the adoption of a solvency plan under subsection 7h7 so as to be inconsistent with the solvency plan4 7,b7 ,special rules for benefit increases ,a plan may not be amended after the date of the adoption of a solvency plan under subsection 7h7 so as to increase benefits1 including future benefit accruals1 unless the increase is required by law or is a de minimis change4 7,c7 ,special rules for increases in compensation or contribution rate ,any increase in employee compensation or contribution rates which takes effect after the first day of the plan year in which the plan enters declining status shall not give rise to an increase in benefits or future benefit accruals under the plan4 7#b7 ,restriction on lump sums and similar benefits 7,a7 ,in general ,effective on the date the notice of certification of the plan's declining status for the initial determination year under subsection 7b77#e77;,d7 is sent1 and notwithstanding section #bjd7;g71 the plan shall not pay-- 7i7 any payment1 in excess of the monthly amount paid under a single life annuity 7plus any social security supplements described in the last sentence of section #bjd7;b77#a77;,g771 to a participant or beneficiary whose annuity starting date 7as defined in section #bje7;h77#b77 occurs after the date such notice is sent1 7ii7 any payment for the purchase of an irrevocable commitment from an insurer to pay benefits1 or 7iii7 any other payment specified by the ,secretary of the ,treasury by regulations1 unless it is a de minimis amount4 7,b7 ,exception ,subparagraph 7,a7 shall not apply to a benefit which under section #bjc7;e7 may be immediately distributed without the consent of the participant or to any makeup payment in the case of a retroactive annuity starting date or any similar payment of benefits owed with respect to a prior period4 7#c7 ,special rules for plan adoption period ,during the period beginning on the date of the certification under subsection 7b77#e77;,a7 for the initial determination year and ending on the date of the adoption of a solvency plan-- 7,a7 the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for-- 7i7 a reduction in the level of contributions for any participants1 7ii7 a suspension of contributions with respect to any period of service1 or 7iii7 any new direct or indirect exclusion of younger or newly hired employees from plan participation1 unless the plan sponsor reasonably determines that the acceptance of such an agreement is in the best interests of participants and beneficiaries and that rejection of such agreement would adversely affect the plan1 and 7,b7 no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits1 any change in the accrual of benefits1 or any change in the rate at which benefits become nonforfeitable under the plan may be adopted unless the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf or to comply with other applicable law4 4 7,c7 ,suspension of benefits ,section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as amended by this section1 is further amended-- 7i7 by redesignating paragraph 7#i7 of subsection 7f7 7as redesignated by subsection 7a77#b77 as paragraph 7#h7 of subsection 7h7 7as added by subparagraph 7,b771 and 7ii7 by moving such paragraph to the position immediately after paragraph 7#g7 of such subsection 7h74 7#d7 ,conforming amendments 7,a7 ,subsection 7a77#d77;,d7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as redesignated and amended by the preceding provisions of this section1 is further amended by striking subsection 7f77#i7 and inserting subsection 7h77#h74 7,b7 ,paragraph 7#e7 of section #cje7;b7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b771 as so redesignated and as amended by section #cba and the preceding provisions of this section1 is further amended-- 7i7 by striking critical in subparagraph 7,a77i77,i7 and inserting critical or declining1 7ii7 by striking funding improvement or rehabilitation period in subparagraph 7,a77i77,,ii7 and inserting funding improvement1 rehabilitation1 or solvency attainment period1 7iii7 by striking funding improvement or rehabilitation plan in subparagraph 7,a77i77,,ii7 and inserting funding improvement1 rehabilitation1 or solvency plan1 7iv7 by striking endangered or critical in subparagraph 7,a77i77,v77bb7 and inserting endangered1 critical1 or declining1 7v7 by striking funding improvement plan or rehabilitation in subparagraph 7,a77iv7 and inserting funding improvement1 rehabilitation1 or solvency1 7vi7 by striking critical each place it appears in subparagraph 7,a77vi7 and inserting critical or declining1 7vii7 by striking rehabilitation period in subparagraph 7,a77vi7 and inserting rehabilitation or solvency attainment period1 7viii7 by striking as described in subsection 7f77#i7 in subparagraph 7,b77v71 7ix7 by inserting if the plan is already in a rehabilitation period1 and before if reasonable in subparagraph 7,b77v77,i71 7x7 by striking subsection 7f77#i7 in subparagraph 7,b77v77,,ii7 and inserting subsection 7h77#h71 7xi7 by striking endangered or critical both places it appears in subparagraph 7,d77i7 and inserting endangered1 critical1 or declining1 7xii7 by striking endangered or critical in the heading of subparagraph 7,d77ii7 and inserting endangered1 critical1 or declining1 7xiii7 by striking endangered or critical in subparagraph 7,d77ii7 and inserting endangered1 critical1 or declining1 7xiv7 by striking funding improvement or rehabilitation plan both places it appears in subclauses 7,i7 and 7,,ii7 of subparagraph 7,d77ii7 and inserting funding improvement1 rehabilitation1 or solvency plan1 and 7xv7 by adding at the end of subparagraph 7,d7 the following new clause3 7vii7 ,notice of projection to be in declining status in a future plan year ,in any case in which it is certified under subparagraph 7,a77i7 that a multiemployer plan will be in declining status for any of #e succeeding plan years 7but not for the current plan year71 the plan sponsor shall1 not later than #cj days after the date of the certification1 provide notification of the projected declining status to the ,pension ,benefit ,guaranty ,corporation4 4 7,c7 ,subparagraph 7,j7 of section #cje7;h77#h7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;h77#h771 as so redesignated and amended1 is further amended-- 7i7 by striking critical in the heading and inserting declining1 and 7ii7 by striking shall not emerge from critical status under paragraph 7#d77;,b71 and inserting shall not emerge from declining status4 7,d7 ,subsection 7j7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 is further amended-- 7i7 by striking 7f77#h7 or 7g7 in paragraph 7#a7 and inserting 7f77#h71 7g71 or 7i71 7ii7 by striking subsection 7f77#i7 in paragraph 7#a7 and inserting subsection 7h77#h71 7iii7 by striking funding improvement or rehabilitation plan in the heading of paragraph 7#c7 and inserting funding improvement1 rehabilitation1 or solvency1 7iv7 by striking funding improvement plan or rehabilitation plan both places it appears in subparagraphs 7,a7 and 7,b7 of paragraph 7#c7 and inserting funding improvement1 rehabilitation1 or solvency plan1 7v7 by striking endangered or critical in the heading of paragraph 7#d71 as amended by subsection 7a71 and inserting endangered1 critical1 or declining1 7vi7 by striking endangered or critical each place it appears in paragraph 7#d71 as so amended1 and inserting endangered1 critical1 or declining1 and 7vii7 by striking critical or endangered in paragraph 7#d7 and inserting endangered1 critical1 or declining4 7,e7 ,subsection 7k7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 is further amended-- 7i7 by striking or a rehabilitation plan under subsection 7f7 and inserting 1 a rehabilitation plan under subsection 7f71 or a solvency plan under subsection 7h71 7ii7 by striking endangered status or a plan in critical status and inserting endangered1 critical1 or declining status1 7iii7 by striking has not agreed on a funding improvement plan or rehabilitation plan and inserting has not agreed on a funding improvement1 rehabilitation1 or solvency plan 7whichever is applicable71 and 7iv7 by striking adoption of a funding improvement plan or rehabilitation plan and inserting adoption of a funding improvement1 rehabilitation1 or solvency plan4 7,f7 ,subsection 7l7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 is further amended-- 7i7 by striking endangered status or in critical status in paragraph 7#a7 and inserting endangered1 critical1 or declining status1 7ii7 by striking endangered or critical in paragraph 7#a7 and inserting endangered1 critical1 or declining1 and 7iii7 by striking 7d7 and 7f7 in paragraph 7#b7 and inserting 7d71 7f71 and 7h74 7,g7 ,section #aja7;f77#b77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajba7;f77#b77;,b771 as amended by this section1 is amended-- 7i7 by striking #cje7k7 in clause 7i77,,ii7 and inserting #cje7m71 and 7ii7 by striking #cje7k77#h7 in clause 7ii77,,ii7 and inserting #cje7m77#h74 7,h7 ,section #aja7k77#a77,k7 of such ,act 7#bi ,u4,s4,c4 #ajba7k77#a77,k77 is amended-- 7i7 by striking critical or endangered and inserting endangered1 critical1 or declining1 and 7ii7 by striking funding improvement or rehabilitation both places it appears and inserting funding improvement1 rehabilitation1 or solvency4 7,i7 ,section #ajc7;f77#a77;,b77ii7 of such ,act 7#bi ,u4,s4,c4 #ajbc7;f77#a77;,b77ii771 as amended by this section1 is amended by striking #cje7k77#b7 and inserting #cje7m77#b74 7,j7 ,section #ajc7;f77#b77;,g7 of such ,act 7#bi ,u4,s4,c4 #ajbc7;f77#b77;,g77 is amended-- 7i7 by striking critical or endangered and inserting endangered1 critical1 or declining1 and 7ii7 by striking funding improvement or rehabilitation and inserting funding improvement1 rehabilitation1 or solvency4 7,k7 ,section #ajd7;d77#a77;,e7 of such ,act 7#bi ,u4,s4,c4 #ajbd7;d77#a77;,e77 is amended-- 7i7 by striking critical or endangered and inserting endangered1 critical1 or declining1 and 7ii7 by striking funding improvement or rehabilitation and inserting funding improvement1 rehabilitation1 or solvency4 7,l7 ,section #ejb7;a77#aj7 of such ,act 7#bi ,u4,s4,c4 #aacb7;a77#aj77 is amended-- 7i7 by striking endangered or critical and inserting endangered1 critical1 or declining1 and 7ii7 by striking funding improvement or rehabilitation each place it appears and inserting funding improvement1 rehabilitation1 or solvency4 7,m7 ,section #ejb7;c77#h7 of such ,act 7#bi ,u4,s4,c4 #aacb7;c77#h77 is amended-- 7i7 by striking funding improvement plan or rehabilitation in subparagraph 7,a7 and inserting funding improvement1 rehabilitation1 or solvency1 7ii7 by striking endangered or critical in subparagraph 7,a7 and inserting endangered1 critical1 or declining1 7iii7 by striking which is not in seriously endangered status in subparagraph 7,b71 and 7iv7 by striking meet the applicable benchmarks in subparagraph 7,b7 and inserting emerge from endangered status4 7,n7 ,section #dbcc of such ,act 7#bi ,u4,s4,c4 #adac71 as amended by this section1 is further amended-- 7i7 by striking #cje7;f77#i7 each place it appears in subsections 7b77#b7 and 7e77#a77;,a7 and inserting #cje7;h77#h71 and 7ii7 by striking #cje7;f77#i77;,e77vi7 in subsection 7e77#b7 and inserting #cje7;h77#h77;,e77vi74 7,o7 ,section #dbcc7m77#a7 of such ,act1 as added by this ,act1 is amended by striking funding improvement or rehabilitation and inserting funding improvement1 rehabilitation1 or solvency4 7,p7 ,section #dbcc;,a7h77#d77;,c7 of such ,act1 as added by this ,act1 is amended by striking rehabilitation plan and inserting rehabilitation or solvency plan4 7,q7 ,section #dbcc;,a7m77#a7 of such ,act1 as added by this ,act1 is amended by striking funding improvement or rehabilitation and inserting funding improvement1 rehabilitation1 or solvency4 7,r7 ,section #dbcc;,a7o77#a7 of such ,act1 as added by this ,act1 is amended by striking #cje7k77#b7 and inserting #cje7m77#b74 7,s7 ,section #dbcc;,a7o77#ab7 of such ,act1 as added by this ,act1 is amended by striking funding improvement plan or rehabilitation and inserting funding improvement1 rehabilitation1 or solvency4 7,t7 ,section #dbde of such ,act 7#bi ,u4,s4,c4 #adbf71 as amended by section #aab and this section1 is further amended-- 7i7 by striking #cje7;b77#c7 each place it appears in subsections 7c77#a71 7c77#b71 7d77#a71 and 7d77#b7 and inserting #cje7;b77#c71 or a plan in declining status1 as described in section #cje7;b77#d71 and 7ii7 by striking #cje7;f77#i7 in subsection 7f7 and inserting #cje7;h77#h74 7e7 ,adjustment of benefits 7#a7 ,in general ,section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe71 as amended by this section1 is further amended-- 7,a7 by further redesignating subsections 7m7 and 7n71 as redesignated by subsection 7d71 as subsections 7n7 and 7o71 respectively1 7,b7 by redesignating paragraph 7#h7 of subsection 7f71 as redesignated by subsection 7a77#b71 as subsection 7m71 and 7,c7 by moving such subsection to the position immediately after subsection 7l74 7#b7 ,clerical and conforming amendments 7,a7 ,the heading of subsection 7m7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as redesignated by paragraph 7#a71 is amended to read as follows3 7m7 ,adjustment of benefits 4 7,b7 ,the following provisions of such subsection 7m7 are amended as follows3 7i7 ,subparagraphs 7,a71 7,b71 and 7,c7 are redesignated as paragraphs 7#a71 7#b71 and 7#d71 respectively1 and moved #b ems to the left4 7ii7 ,clauses 7i71 7ii71 7iii71 and 7iv7 of paragraph 7#a7 7as so redesignated7 are redesignated as subparagraphs 7,a71 7,b71 7,c71 and 7,d71 respectively1 and moved #b ems to the left4 7iii7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#a77;,d7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7iv7 ,clauses 7i71 7ii71 and 7iii7 of paragraph 7#d7 7as so redesignated7 are redesignated as subparagraphs 7,a71 7,b71 and 7,c71 respectively1 and moved #b ems to the left1 and the flush sentence at the end of subparagraph 7,c7 7as so redesignated7 is moved #b ems to the left4 7v7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#d77;,a7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7vi7 ,subclauses 7,i7 and 7,,ii7 of paragraph 7#d77;,b7 7as so redesignated7 are redesignated as clauses 7i7 and 7ii71 respectively1 and moved #b ems to the left4 7vii7 ,subclauses 7,i71 7,,ii71 and 7,,iii7 of paragraph 7#d77;,c7 7as so redesignated7 are redesignated as clauses 7i71 7ii71 and 7iii71 respectively1 and moved #b ems to the left4 7viii7 ,paragraph 7#a77;,a71 as so redesignated1 is amended by striking subparagraph 7,c7 and inserting paragraph 7#d74 7ix7 ,paragraph 7#a77;,b71 as so redesignated1 is amended by striking clause 7iv77,,iii7 and inserting subparagraph 7,d77iii74 7x7 ,paragraph 7#a77;,d71 as so redesignated1 is amended by striking this paragraph and inserting this subsection4 7xi7 ,paragraph 7#b71 as so redesignated1 is amended-- 7,i7 by striking subparagraph 7,a77iv77,,iii7 and inserting paragraph 7#a77;,d77iii71 and 7,,ii7 by striking this paragraph and inserting this subsection4 7xii7 ,paragraph 7#d77;,a71 as so redesignated1 is amended by striking subparagraph 7,a7 and inserting paragraph 7#a74 7xiii7 ,paragraphs 7#d77;,b7 and 7#d77;,c71 as so redesignated1 are each amended by striking clause 7i7 each place it appears and inserting subparagraph 7,a74 7xiv7 ,the last sentence of paragraph 7#d77;,c71 as so redesignated1 is amended-- 7,i7 by striking subclause 7,i7 and inserting clause 7i71 and 7,,ii7 by striking this subparagraph and inserting this paragraph4 7#c7 ,application to all plans in endangered1 critical1 or declining status 7,a7 ,in general ,subparagraph 7,a7 of section #cje7m77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7m77#a771 as redesignated and amended by this section1 is further amended-- 7i7 by striking the plan sponsor shall and inserting the plan sponsor of a multiemployer plan in endangered1 critical1 or declining status may1 and 7ii7 by striking paragraph 7#a77;,b77i7 and inserting subsection 7d77#a77;,b71 7f77#a77;,b71 or 7h77#a77;,b71 whichever is applicable4 7,b7 ,conforming amendments ,subparagraph 7,b7 of section #cje7m77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7m77#a771 as redesignated and amended by this section1 is further amended by striking critical both places it appears and inserting endangered1 critical1 or declining4 7#d7 ,additional adjustable benefits 7,a7 ,in general ,subparagraph 7,d7 of section #cje7m77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7m77#a771 as redesignated by this section1 is amended-- 7i7 by inserting 1 including early reduction factors which are not provided on an actuarially equivalent basis1 after 7i77 in clause 7ii71 as so redesignated1 7ii7 by striking and at the end of clause 7ii7 7as so redesignated71 7iii7 by striking that would not be eligible and all that follows through the period in clause 7iii7 7as so redesignated7 and inserting which were adopted 7or1 if later1 took effect7 less than #abj months before the first day of the first plan year in which the plan was in endangered1 critical1 or declining status11 and 7iv7 by adding at the end the following new clauses3 7iv7 any one-time bonus payment or thirteenth check provision1 and 7v7 benefits granted for periods of service prior to participation in the plan4 4 7,b7 ,conforming amendments 7i7 ,subparagraph 7,b7 of section #cje7m77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe71 as redesignated and amended by this section1 is further amended by striking subparagraph 7,d77iii7 and inserting clause 7iii71 7iv71 or 7v7 of subparagraph 7,d74 7ii7 ,paragraph 7#b7 of section #cje7m7 of such ,act 7#bi ,u4,s4,c4 #ajhe71 as amended by paragraph 7#b77;,b71 is further amended by striking paragraph 7#a77;,d77iii7 and inserting clause 7iii71 7iv71 or 7v7 of paragraph 7#a77;,d74 7iii7 ,section #dbcc;,a7o77#a7 of such ,act1 as added by this ,act and as amended by this section1 is further amended by striking #cje7m77#b7 and inserting #cje7n77#b74 7#e7 ,rules relating to suspension of benefits upon return to work ,subsection 7m7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as redesignated and amended by this section1 is further amended by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,rules relating to suspension of benefits upon return to work ,the plan sponsor of a multiemployer plan in endangered1 critical1 or declining status may amend rules regarding the suspension of a participant's benefits upon a return to work after commencement of benefits1 or the commencement of benefits after normal retirement age 7including in the case of continued employment after normal retirement age74 ,any such changes shall apply only to future payments of benefits4 4 7#f7 ,additional conforming amendments 7,a7 ,clause 7iii7 of section #cje7;b77#e77;,d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e77;,d771 as redesignated and amended by this section1 is further amended-- 7i7 by striking critical in the heading and inserting endangered1 critical1 or declining1 7ii7 by striking critical status both places it appears and inserting endangered1 critical1 or declining status1 and 7iii7 by striking subsection 7f77#h7 in subclause 7,i7 and inserting subsection 7m77#a77;,d74 7,b7 ,subsection 7j7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as amended by subsection 7d71 is further amended by striking 7f77#h71 7g71 or 7i7 and inserting 7e71 7g71 7i71 or 7m74 7,c7 ,section #aja7;f77#b77;,b7 of such ,act 7#bi ,u4,s4,c4 #ajba7;f77#b77;,b771 as amended by this section1 is amended-- 7i7 by striking #cje7m7 in clause 7i77,,ii7 and inserting #cje7n71 and 7ii7 by striking #cje7m77#h7 in clause 7ii77,,ii7 and inserting #cje7n77#h74 7,d7 ,section #ajc7;f77#a77;,b77ii7 of such ,act 7#bi ,u4,s4,c4 #ajbc7;f77#a77;,b77ii771 as amended by this section1 is amended by striking #cje7m77#b7 and inserting #cje7n77#b74 7f7 ,elections ,to be in critical or endangered status 7#a7 ,in general ,paragraph 7#f7 of section #cje7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;b771 as redesignated and amended by this section1 is further amended-- 7,a7 by striking is not in critical status in subparagraph 7,a7 and inserting is not in critical or declining status1 7,b7 by striking but that is projected in subparagraph 7,a7 and inserting 8but-- 7i7 that is projected 1 7,c7 by striking #e plan years may1 not later than in subparagraph 7,a7 and inserting 8#e plan years1 or 7ii7 that is in endangered status and is not reasonably projected to be able to emerge from endangered status within the funding improvement period under the funding improvement plan in effect1 may1 not later than 1 and 7,d7 by striking under paragraph 7#c7 in subparagraph 7,b7 and inserting under paragraph 7#c7 or for endangered status under paragraph 7#b74 7#b7 ,election to be in endangered status ,subsection 7b7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 is further amended by adding at the end the following new paragraph3 7#h7 ,election to be in endangered status ,notwithstanding paragraph 7#b7-- 7,a7 the plan sponsor of a multiemployer plan that is not in endangered1 critical1 or declining status for a plan year but that is projected by the plan actuary1 pursuant to the determination under paragraph 7#e71 to be in endangered status in any of the #e succeeding plan years1 may1 not later than #cj days after the date of the certification under paragraph 7#e77;,a71 elect to be in endangered status effective for the current plan year1 7,b7 the plan year in which the plan sponsor elects to be in endangered status under subparagraph 7,a7 shall be treated for purposes of this section as the first year in which the plan is in endangered status1 regardless of the date on which the plan first satisfies the criteria for endangered status under paragraph 7#b71 and 7,c7 a plan that is in endangered status under this paragraph shall not emerge from endangered status unless the plan's actuary certifies under paragraph 7#e77;,a7 that the plan is no longer in endangered status and is not in critical or declining status4 4 7g7 ,amendments relating to funding improvement plan 7#a7 ,in general ,paragraph 7#a7 of section #cje7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;d771 as redesignated and amended by this section1 is further amended-- 7,a7 by striking the last sentence1 and 7,b7 in subparagraph 7,b71 by striking funding improvement plan-- and all that follows and inserting 8funding improvement plan1 shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the accrual rate as of the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj7 based on the contribution rate in effect as of the first day of the plan year in which the plan enters endangered status1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 4 7#b7 ,funding improvement plan ,paragraph 7#c7 of section #cje7;d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d771 as so redesignated and amended1 is further amended-- 7,a7 by striking ,for purposes of this section-- and all that follows through which consists of in subparagraph 7,a7 and inserting ,for purposes of this section1 a funding improvement plan is a plan which consists of1 and 7,b7 by striking formulated to provide and all that follows and inserting 8formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to-- 7,a7 enable the plan to emerge from endangered status by the end of the funding improvement period1 and 7,b7 avoid any accumulated funding deficiencies during the funding improvement period 7taking into account any extension of amortization periods under section #cjd7;d774 4 7#c7 ,funding improvement period ,paragraph 7#d7 of section #cje7;d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d77#d771 as so redesignated and amended1 is further amended by striking subparagraph 7,b7 and inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,new period based on adverse experience 7i7 ,in general ,if the plan's actuary determines necessary based on adverse plan experience1 the plan sponsor may provide for a new #aj-year period as of the first day of any plan year in the original funding improvement period1 but only if the plan is still projected to meet the requirements of the funding improvement plan and emerge from endangered status at the end of the new funding improvement period4 7ii7 ,limitation ,a plan sponsor may provide a new #aj-year period under clause 7i7 not more than #a time in any #bj-;consecutive-year period1 unless the plan sponsor submits to the ,secretary an application for an additional new period4 ,such application shall include a certification that the plan is projected to emerge from endangered status in the proposed new #aj-year period and a description of key assumptions1 to be specified in regulations promulgated by the ,secretary in consultation with the ,pension ,benefit ,guaranty ,corporation4 4 7#d7 ,conforming amendments 7,a7 ,subparagraph 7,c7 of section #cje7;d77#d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d77#d771 as so redesignated and amended1 is further amended-- 7i7 by striking critical status both places it appears in clauses 7i7 and 7ii7 and inserting critical or declining status1 7ii7 by striking rehabilitation period in clause 7ii7 and inserting rehabilitation or solvency attainment period1 and 7iii7 by striking critical status in the heading of clause 7ii7 and inserting critical or declining status4 7,b7 ,subsection 7d7 of section #cje of such ,act 7#bi ,u4,s4,c4 #ajhe71 as so redesignated and amended1 is further amended by striking paragraph 7#e7 and by redesignating paragraphs 7#f71 7#g71 and 7#h7 as paragraphs 7#e71 7#f71 and 7#g71 respectively4 7,c7 ,paragraph 7#f7 of section #cje7;d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d771 as so redesignated1 is amended-- 7i7 by striking 7#a77;,b77i77,i7 in subparagraph 7,a7 and inserting 7#a77;,b77i71 and 7ii7 by striking paragraph 7#f77;,b7 in subparagraph 7,b77ii7 and inserting paragraph 7#e77;,b74 7,d7 ,paragraph 7#b7 of section #cje7;d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d771 as so redesignated1 is amended by inserting 1 except that the next update of the funding improvement plan shall fulfill the requirement of paragraph 7#a77;,b77i7 after for a preceding plan year4 7h7 ,amendments relating to rehabilitation plan 7#a7 ,in general ,paragraph 7#a7 of section #cje7;f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f771 as redesignated and amended by this section1 is further amended-- 7,a7 by striking the last #b sentences1 and 7,b7 in subparagraph 7,b71 by striking rehabilitation plan-- and all that follows and inserting 8rehabilitation plan1 shall provide to the bargaining parties #a or more schedules showing revised benefit structures1 revised contribution structures1 or both1 which1 if adopted1 may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph 7#c71 including-- 7i7 one default proposal under which-- 7,i7 all adjustable benefits in the form of early retirement subsidies 7including early reduction factors which are not provided on an actuarially equivalent basis7 under the plan are eliminated1 and 7,,ii7 the future monthly benefit accrual rate under the plan is reduced to the equivalent of #a percent of annual contributions 7or1 if lower1 the accrual rate as of the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj7 based on the contribution rate in effect as of the first day of the plan year in which the plan enters critical status1 and which may also include reduction or elimination of any other adjustable benefits under the plan1 and 7ii7 any additional schedules which reduce or eliminate adjustable benefits under the plan which the plan sponsor deems appropriate to provide as an alternative to the default proposal4 ,in the case of a plan adopting a rehabilitation plan described in paragraph 7#c77;,a77ii71 no schedule provided to or adopted by the bargaining parties shall provide for a monthly benefit accrual rate in excess of the rate described in subparagraph 7,b77i77,,ii74 4 7#b7 ,rehabilitation plan 7,a7 ,in general ,subparagraph 7,a7 of section #cje7;f77#c7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#c771 as so redesignated1 is amended-- 7i7 by striking and may include and all that follows through such actions in clause 7i71 7ii7 by inserting 1 while delaying insolvency for as long as possible and maximizing the income of the plan1 including income after insolvency before the period in clause 7ii71 and 7iii7 by striking 7#a77;,b77i7 in the last sentence and inserting 7#a77;,b74 7,b7 ,conforming amendments ,clause 7i7 of section #cje7;f77#c77;,c7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#c77;,c771 as so redesignated1 is amended-- 7i7 by striking 7#a77;,b77i7 in subclause 7,,ii7 and inserting 7#a77;,b71 and 7ii7 by striking the last sentence of paragraph 7#a7 and inserting paragraph 7#a77;,b77i74 7#c7 ,rehabilitation period 7,a7 ,in general ,subparagraph 7,a7 of section #cje7;f77#d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#d771 as so redesignated and amended1 is further amended-- 7i7 by striking ,the rehabilitation period and inserting ,except as otherwise provided in this subparagraph1 the rehabilitation period1 and 7ii7 by adding at the end the following3 ,if1 upon exhaustion of all reasonable measures1 the plan is not reasonably expected to emerge from critical status by the end of such #aj-year period1 the rehabilitation period shall be extended to take into account the projected date of emergence from critical status 7if the rehabilitation plan remained in effect until such date7 or the projected date of insolvency 7if applicable7 7unless the plan enters declining status744 7,b7 ,emergence from critical status ,subparagraph 7,b7 of section #cje7;f77#d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#d771 as so redesignated and amended1 is further amended-- 7i7 by inserting and is not in declining status1 after the comma in clause 7i77,i71 7ii7 by striking subclause 7,,iii7 of clause 7i7 and inserting the following3 7,,iii7 the plan's projected funded percentage as of the first day of the #aeth succeeding plan year is at least #ajj percent and is projected to increase after such date4 1 7iii7 by striking that-- and all that follows through regardless of whether in clause 7ii77,i7 and inserting that the plan meets the requirements of subclauses 7,,ii7 and 7,,iii7 of clause 7i71 regardless of whether1 and 7iv7 by striking unless-- and all that follows in clause 7ii77,,ii7 and inserting unless1 as of such plan year1 the plan fails to meet the requirements of subclause 7,,ii7 or 7,,iii7 of clause 7i744 7#d7 ,rules relating to benefit increases during rehabilitation period ,subparagraph 7,b7 of section #cje7;g77#a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;g77#a771 as so redesignated and amended1 is further amended by striking unless and all that follows and inserting unless the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf or to comply with other applicable law1 or the amendment provides for only a de minimis increase in the liabilities of the plan44 7#e7 ,conforming amendments 7,a7 ,paragraph 7#f7 of section #cje7;f7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f771 as so redesignated1 is amended by striking the last sentence of paragraph 7#a7 and inserting paragraph 7#a77;,b77i74 7,b7 ,paragraph 7#b7 of section #cje7;f7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f771 as so redesignated1 is amended by inserting 1 except that the next update of the rehabilitation plan shall fulfill the requirement of paragraph 7#a77;,b77i7 after for a preceding plan year4 7i7 ,actuarial assumptions 7#a7 ,in general ,subsection 7n7 of section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe71 as redesignated by subsections 7a71 7d71 and 7e71 is amended-- 7,a7 by striking method in the heading and inserting method and assumptions1 and 7,b7 by adding at the end the following new paragraph3 7#aa7 ,actuarial assumptions 7,a7 ,in general ,the actuarial assumptions relied upon for purposes of this section by a plan actuary shall be individually reasonable and1 in the aggregate1 shall be reasonable and 7with the exception of assumptions regarding future contributions7 represent the actuary's best estimate of future plan experience1 within limitations prescribed by the ,secretary of the ,treasury4 ,a plan actuary shall avoid conservatism or optimism in individual assumptions to the extent that they would result in a set of assumptions that is unreasonable in the aggregate4 7,b7 ,investment returns ,the investment return assumption for projecting plan assets may differ from the actuarial valuation interest rate4 ,in selecting the investment return assumption for projecting plan assets1 the plan actuary shall estimate the expected return of the plan's investments as currently invested and as expected to be invested in the future1 consistent with the plan's adopted investment policy1 if applicable4 ,it is reasonable for an actuary to expect that the plan's investment decisions will consider risk1 expected returns over time1 and expected future benefit payments4 ,the investment return assumption shall not exceed the interest rate used to determine past service liability under section #dca7;b77#f74 7,c7 ,contributions 7i7 ,in general ,the plan actuary shall develop assumptions for the projection of future contributions1 including assumptions regarding industry activity among contributing employers and contribution rates1 based on information provided by the plan sponsor1 which must act reasonably and in good faith4 ,the plan actuary shall certify the reasonableness of all assumptions4 7ii7 ,projected industry activity ,any projection of activity in the industry or industries covered by the plan1 including future covered employment and contribution levels1 shall be based on information provided by the plan sponsor acting reasonably and in good faith4 7iii7 ,future contribution base units 7,i7 ,declining contribution base units ,if recent experience of the plan has been declining contribution base units1 the plan actuary may assume future contribution base units will continue to decline at the same annualized trend as over the #e immediately preceding plan years1 unless the actuary determines that there have been significant changes that would make such assumption unreasonable4 7,,ii7 ,flat or increasing contribution base units ,if recent experience of the plan has been increasing1 or neither increasing nor decreasing1 contribution base units1 the plan actuary may assume future contribution base units will remain unchanged indefinitely1 unless the actuary determines that there have been significant changes that would make such assumption unreasonable4 7iv7 ,future contribution rates 7,i7 ,in general ,projections of contributions shall be based on the contribution rates consistent with the terms of collective bargaining and participation agreements currently in effect4 7,,ii7 ,future increases in accordance with correction plans ,if reasonable and applicable1 the plan actuary may assume future increases in contribution rates consistent with the adopted funding improvement plan1 rehabilitation plan1 or solvency plan4 7,,iii7 ,additional factors ,information provided by the plan sponsor to the plan actuary in setting the assumption regarding future increases in contribution rates shall take into account the ability of the participating employers to make contributions at the scheduled rates over time1 considering relevant factors such as projected industry activity1 the financial strength of participating employers1 market competition1 and the scheduled contribution rate to the plan relative to the overall wage package4 7,d7 ,assumptions for developing schedules ,all schedules under any funding improvement plan1 rehabilitation plan1 or solvency plan must be developed based on the same set of actuarial assumptions unless it would be unreasonable to do so1 taking into account the anticipated impact of the schedules on participant behavior and employer participation4 4 7#b7 ,additions to ,form #eejj ,schedule ,,mb ,subparagraph 7,b7 of section #cje7;b77#e7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e771 as redesignated and amended by this section1 is further amended by adding at the end the following new clause3 7vi7 ,additional attachments ,the plan actuary shall attach to the certification required under subparagraph 7,a7-- 7,i7 documentation supporting the certification of status under subparagraph 7,a77i71 including projections of the funding standard account1 funded percentage1 and solvency of the plan1 7,,ii7 a clear description of the key assumptions used in performing the projections1 including investment returns1 contribution base units1 and contribution rates1 7,,iii7 a #e-year history of contributions1 including contribution base units1 average contribution rates1 and withdrawal liability payments1 and a comparison of such contribution base units1 rates1 and payments to projections made by the plan1 and 7,,iv7 an alternate projection of the funding standard account1 funded percentage1 and solvency1 based on the following assumptions3 7aa7 ,annual future investment returns on plan assets equal the actuarial interest rate assumption minus #a percent4 7bb7 ,future contribution base units projected using a trend equal to the lesser of-- 7,,aa7 the annualized trend of actual contribution base units over the #e preceding plan years1 and 7,,bb7 no change in future contribution base units4 7cc7 ,no increases in future contribution rates beyond those consistent with the collective bargaining agreements and participation agreements in effect for the plan year4 7dd7 ,the withdrawal from the plan of the employer which has contributed the greatest total amount of contributions over the #e preceding plan years1 if such employer has contributed at least #aj percent of the total contributions to the plan over such #e plan years and such employer has a below investment grade credit rating 7but only if obtaining the credit rating of such employer is not an undue burden74 7ee7 ,if such credit rating cannot be obtained without undue burden1 the withdrawal of the employer which has contributed the greatest total amount of contributions over the #e preceding plan years1 if such employer has contributed at least #aj percent of the total contributions to the plan over such #e plan years without regard to collection of any withdrawal liability4 7ff7 ,if no employer has contributed at least #aj percent of the total contributions to the plan over the #e preceding plan years1 the withdrawal of the employer which contributed the greatest total amount of contributions for the current plan year1 without regard to collection of any withdrawal liability1 unless the employer contributed less than #a percent of the total contributions to the plan for such plan year4 7gg7 ,other assumptions consistent with the projection based on the actuary's best estimate assumptions4 4 7#c7 ,conforming amendments 7,a7 ,section #cje7;b77#e77;,b77i7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e77;,b77i771 as redesignated by this section1 is amended by striking assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,b7 ,section #cje7;b77#e77;,a77vi7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;b77#e77;,a77vi71 as amended by this section and section #cba1 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,c7 ,paragraph 7#c7 of section #cje7;d7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;d771 as amended by subsection 7g71 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,d7 ,clause 7i7 of section #cje7;f77#c77;,a7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#c77;,a771 as amended by subsection 7h71 is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7,e7 ,section #cje7;h77#c7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;h77#c771 as added by subsection 7d71 is amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection 7n77#aa74 7j7 ,conforming amendments relating to premiums ,paragraph 7#aj7 of section #djjf7;a7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a771 as added by this ,act1 is amended-- 7#a7 by striking #cje7;b77#g7 in subparagraph 7,b77iii7 thereof and inserting #cje7;b77#d71 7#b7 by striking critical and declining in subparagraph 7,b77iii7 thereof and inserting declining1 and 7#c7 by striking #cje7;f77#i7 in subparagraph 7,c7 and inserting #cje7;h77#h74 7k7 ,conforming amendments relating to composite and legacy plans 7#a7 ,sections #bjc7;a77#c77;,e77ii71 #bjd7;b77#a77;,b77i71 #bjd7;b77#a77;,h77v71 and #bjd7;g77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7;a77#c77;,e77ii71 #ajed7;b77#a77;,b77i71 #ajed7;b77#a77;,h77v71 and #ajed7;g77#a771 as amended by title ,v1 are each further amended by striking #cje7;f7 each place it appears and inserting #cje7;h77#h74 7#b7 ,sections #cjd7;b77#aj71 #hje7;d77#b77;,d71 and #hje7;d77#d7 of such ,act1 as added by title ,v1 are each amended by striking endangered or critical and inserting endangered1 critical1 or declining4 7#c7 ,section #hja7;b77#a7 of such ,act1 as so added1 is amended by striking endangered or critical both places it appears and inserting endangered1 critical1 or declining4 7#d7 ,sections #hja7;b77#a71 #hja7;b77#e77;,b71 #hje7;b77#a77;,a71 and #hje7;e77#c7 of such ,act1 as so added1 are each amended by striking #cje7;b77#d7 and inserting #cje7;b77#e74 7#e7 ,sections #hja7;b77#e77;,b7 and #hje7;b77#a77;,a7 of such ,act1 as so added1 are each amended by striking endangered or critical and inserting endangered1 critical1 or declining4 7#f7 ,section #hjb7;b77#a7 of such ,act1 as so added1 is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 2 and1 and by adding at the end the following new subparagraph3 7,d7 consistent with the principles of subparagraphs 7,b71 7,c71 and 7,d7 of section #cje7n77#aa74 4 7#g7 ,sections #hjb7;b77#e7 and #hje7;d77#b77;,a7 of such ,act1 as so added1 are each amended by striking #cje7;b77#d77;,b7 and inserting #cje7;b77#e77;,b74 7#h7 ,section #hjc7;a77#b77;,d7 of such ,act1 as so added1 is amended by striking #cje7;f77#i77;,d77vi7 and inserting #cje7;h77#h77;,d77vi74 7#i7 ,section #hjc7;a77#c7 of such ,act1 as so added1 is amended by striking #cje7;f77#h7 and inserting #cje7m77#a77;,d74 7#aj7 ,section #hje7;d77#b77;,d7 of such ,act1 as so added and amended1 is further amended by striking funding improvement or rehabilitation plan and inserting funding improvement1 rehabilitation1 or solvency plan4 7l7 ,additional conforming amendments 7#a7 ,section #ejb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7;c77 is amended-- 7,a7 in paragraph 7#g77;,b71 as added by section #cbb1 by striking #cje7;b77#d77;,d7 and inserting #cje7;b77#e77;,d71 and 7,b7 in paragraph 7#ad71 as so added and as redesignated by section #eja-- 7i7 by striking #cje7;b77#d77;,d7 in subparagraph 7,a7 and inserting #cje7;b77#e77;,d71 and 7ii7 by striking #cje7;b77#d7 in subparagraph 7,b7 and inserting #cje7;b77#e74 7#b7 ,section #djjc7;g7 of such ,act 7#bi ,u4,s4,c4 #acjc7;g771 as added by section #cba1 is amended by striking section #cje7;b77#d77;,a7 and inserting section #cje7;b77#e77;,a74 7#c7 ,section #djdb7;b77#b77;,b77i7 of such ,act 7#bi ,u4,s4,c4 #acdb7;b77#b77;,b771 as added by section #cja1 is amended-- 7,a7 by striking critical and declining and inserting declining1 and 7,b7 by striking 7#g7 and inserting 7#d74 7m7 ,effective date ,except as otherwise provided in subsection 7a77#g71 the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbj4 7n7 ,credit ratings ,no requirement of section #ici or #ici;,a of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#abd ,stat4 #ahhg2 #ae ,u4,s4,c4 #gho-#g note7 shall apply with respect to the amendment made by subsection 7i77#b74 #bac4 ,transition rules 7a7 ,plans in endangered status 7#a7 ,in general ,in the case of a multiemployer plan which is in endangered status as of the date of the enactment of this ,act1 and is on schedule as of such date to meet the applicable benchmarks in accordance with the plan's funding improvement plan-- 7,a7 ,election to apply law before amendment ,the plan sponsor may elect to remain in endangered status and to apply section #dcb of the ,internal ,revenue ,code of #aihf and section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7 as in effect before ,january #a1 #bjba1 to the plan1 but only if the plan continues to meet such applicable benchmarks4 7,b7 ,transitional effective date ,if the plan sponsor does not make the election under paragraph 7#a7-- 7i7 section #dcb of such ,code and section #cje of such ,act as in effect on ,january #a1 #bjba1 shall apply to such plan as of the first day of the first plan year beginning after ,december #ca1 #bjbj1 and 7ii7 section #dcb7;d77#a77;,b77i77,,ii7 of such ,code and section #cje7;d77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;g7 and #bab7;g71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters endangered status4 ,in the case of any plan with respect to which the plan sponsor makes the election under subparagraph 7,a7 but which fails to continue to meet the applicable benchmarks under the funding improvement plan1 this subparagraph shall apply to such plan by substituting the plan year after the first plan year for which the plan fails to meet the applicable benchmarks for the first plan year beginning after ,december #ca1 #bjbj4 7#b7 ,plans entering endangered status between enactment and ,january #a1 #bjba ,in the case of a multiemployer plan which enters endangered status after the date of the enactment of this ,act and before ,january #a1 #bjba-- 7,a7 section #dcb of such ,code and section #cje of such ,act as in effect on ,january #a1 #bjba1 shall apply to such plan as if already in effect1 and 7i7 section #dcb7;d77#a77;,b77i77,,ii7 of such ,code and section #cje7;d77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;g7 and #bab7;g71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters endangered status4 7b7 ,plans in critical or critical and declining status 7#a7 ,in general ,in the case of a qualified critical multiemployer plan-- 7,a7 ,election to apply law before amendment ,the plan sponsor may elect to remain in critical or critical and declining status and to apply section #dcb of the ,internal ,revenue ,code of #aihf and section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7 as in effect before ,january #a1 #bjba1 to the plan1 but only if the plan continues to make scheduled progress under the plan's rehabilitation plan4 7,b7 ,transitional effective date ,if the plan sponsor does not make the election under paragraph 7#a7-- 7i7 section #dcb of such ,code and section #cje of such ,act as in effect on ,january #a1 #bjba1 shall apply to such plan as of the first day of the first plan year beginning after ,december #ca1 #bjbj1 7ii7 section #dcb7;f77#a77;,b77i77,,ii7 of such ,code and section #cje7;f77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;h7 and #bab7;h71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters critical status1 and 7iii7 section #dcb7;h77#a77;,b77i77,,ii7 of such ,code and section #cje7;h77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;d77#c7 and #bab7;d77#c71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters declining status4 ,in the case of any plan with respect to which the plan sponsor makes the election under subparagraph 7,a7 but which fails to continue to make scheduled progress under the rehabilitation plan1 this subparagraph shall apply to such plan by substituting the plan year after the first plan year for which the plan fails to make scheduled progress under the rehabilitation plan for the first plan year beginning after ,december #ca1 #bjbj4 7,c7 ,application of premium amendments ,a plan with respect to which the plan sponsor makes the election under subparagraph 7,a7 shall be treated as described in clause 7iii7 of section #djjf7;a77#aj77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd until such time as the plan emerges from critical and declining status pursuant to section #dcb of such ,code and section #cje of such ,act as in effect before ,january #a1 #bjba4 7#b7 ,plans entering critical or critical and declining status between enactment and ,january #a1 #bjba ,in the case of a multiemployer plan which enters critical or critical and declining status after the date of the enactment of this ,act and before ,january #a1 #bjba-- 7,a7 section #dcb of such ,code and section #cje of such ,act as in effect on ,january #a1 #bjba1 shall apply to such plan as if already in effect1 7,b7 section #dcb7;f77#a77;,b77i77,,ii7 of such ,code and section #cje7;f77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;h7 and #bab7;h71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters critical status1 and 7,c7 section #dcb7;h77#a77;,b77i77,,ii7 of such ,code and section #cje7;h77#a77;,b77i77,,ii7 of such ,act1 as amended by sections #baa7;d77#c7 and #bab7;d77#c71 respectively1 shall each apply to such plan by substituting the date of the enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj for the first day of the plan year in which the plan enters declining status4 7#c7 ,qualified critical multiemployer plan ,for purposes of this subsection1 the term qualified critical multiemployer plan means a multiemployer plan which is in critical or critical and declining status as of the date of the enactment of this ,act1 and is making scheduled progress under the plan's rehabilitation plan1 but only if the rehabilitation plan 7as in effect without regard to the amendments made by this ,act7 targets emergence from critical status not later than #c years after the end of the rehabilitation period as in effect with respect to such plan on the date of the enactment of this ,act4 7c7 ,election 7#a7 ,in general ,an election under subsection 7a77#a77;,a7 or 7b77#a77;,a7 shall be made-- 7,a7 by notice to the ,secretary of the ,treasury and the ,pension ,benefit ,guaranty ,corporation1 in such manner as the ,secretary of the ,treasury may prescribe1 and 7,b7 not later than the due date for the notice of endangered status or critical status for the first plan year beginning after ,december #ca1 #bjbj4 7#b7 ,periods after election ,after making a timely election under paragraph 7#a7-- 7,a7 the plan sponsor shall annually review and update 7if necessary7 the plan's funding improvement plan or rehabilitation plan1 and 7,b7 the plan actuary shall certify annually whether the plan is making scheduled progress under the funding improvement plan or rehabilitation plan4 7d7 ,definitions ,any term used in this section which is also used in section #dcb of the ,internal ,revenue ,code of #aihf or section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7before or after the amendments made by this ,act7 shall have the same meaning as when used in such sections4 ,,ii ,provisions relating to plan mergers #bba4 ,provisions relating to plan mergers and consolidations 7a7 ,in general ,section #dbca7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adaa7;c77 is amended-- 7#a7 by striking section #djf7;a7 or section #djf7;b77#b7 and inserting section #djd1 #djf7;a71 or #djf7;b77#b71 and 7#b7 by adding at the end the following3 ,the corporation shall prescribe safe harbor provisions whereby a merger of multiemployer plans or the transfer of assets or liabilities between multiemployer plans1 where one of the plans is in critical and declining status pursuant to section #cje and one is in stable or unrestricted status pursuant to such section1 shall be deemed to satisfy the requirements of this section4 ,notwithstanding the preceding sentences1 the implementation of such merger or transfer shall be subject to the rules of section #djd44 7b7 ,calculation of withdrawal liability 7#a7 ,in general ,section #dbca of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adaa7 is amended by adding at the end the following new subsection3 7f7 ,calculation of withdrawal liability post-,merger ,the corporation shall prescribe the methods and conditions under which employers contributing to plans which are in stable or unrestricted status under section #cje when such plan merges with a plan in declining status under such section will not be allocated the unfunded vested benefits of the plan in declining status 7as determined immediately before the merger74 4 7#b7 ,effective date ,the amendment made by this section shall apply to plan mergers after ,december #ca1 #bjbj4 #bbb4 ,clarification of ,,pbgc financial assistance for plan mergers and partitions 7a7 ,in general ,paragraph 7#b7 of section #dbca7;e7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adaa7;e77 is amended-- 7#a7 by striking the semicolon in subparagraph 7,b77ii7 and inserting 1 determined solely with respect to the liabilities and assets of the plan which was in critical and declining status prior to the merger2 and2 and 7#b7 by striking subparagraph 7,c7 and redesignating subparagraph 7,d7 as subparagraph 7,c74 7b7 ,partitions ,section #dbcc7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac7;b77 is amended by striking paragraph 7#d71 by adding and at the end of paragraph 7#c77;,b71 and by redesignating paragraph 7#e7 as paragraph 7#d74 7c7 ,conforming amendment relating to status changes ,section #dbca7;e77#b77;,b77ii7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adaa7;e77#b77;,b77ii771 as amended by subsection 7a71 is further amended by striking critical and declining and inserting declining4 7d7 ,effective dates 7#a7 ,in general ,the amendments made by subsections 7a7 and 7b7 shall apply to plan mergers and partitions taking effect after the date of the enactment of this ,act4 7#b7 ,conforming amendment ,the amendment made by subsection 7c7 shall apply to plan mergers taking effect in plan years beginning after ,december #ca1 #bjbj4 #bbc4 ,restoration not required for certain mergers 7a7 ,amendment of ,internal ,revenue ,code of #aihf ,clause 7ii7 of section #dcb7;f77#i77;,c7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is amended by adding at the end the following flush language3 ,if1 during the period of the benefit suspension1 the plan merges with a plan which is in stable or unrestricted status1 nothing in this clause shall be construed to require the plan formed by the merger to restore the suspension of benefits4 4 7b7 ,amendment of ,,erisa ,clause 7ii7 of section #cje7;f77#i77;,c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,c771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is amended by adding at the end the following flush language3 ,if1 during the period of the benefit suspension1 the plan merges with a plan which is in stable or unrestricted status1 nothing in this clause shall be construed to require the plan formed by the merger to restore the suspension of benefits4 4 7c7 ,effective date ,the amendments made by subsections 7a7 and 7b7 shall apply to plan mergers taking effect after the date of the enactment of this ,act4 ,,iii ,withdrawal liability reform #bca4 ,withdrawal liability reform 7a7 ,withdrawal liability definition ,section #dbja7;b77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha7;b77#a77 is amended to read as follows3 7#a7 ,determination of withdrawal liability 7,a7 ,in general ,the withdrawal liability of an employer to a plan is the applicable amount determined under subparagraph 7,b71 adjusted-- 7i7 first1 in the case of a partial withdrawal1 in accordance with section #dbjf2 7ii7 second1 by any de minimis reduction applicable under section #dbji2 and 7iii7 third1 in accordance with section #dbbe4 7,b7 ,applicable amount ,the applicable amount determined under this subparagraph is the lesser of-- 7i7 the amount determined under section #dbaa to be the allocable amount of unfunded vested benefits2 or 7ii7 the present value of a series of #bj equal annual payments in the amount determined with respect to the employer under section #dbai7;c77#a77;,c74 ,in the case of an employer withdrawing from a multiemployer plan described in subparagraph 7,c71 clause 7i7 shall be applied by substituting #be for #bj4 7,c7 ,plans for which #be payments required 7i7 ,in general ,a multiemployer plan is described in this subparagraph if the plan-- 7,i7 is certified to be in declining status 7or1 for plan years prior to #bjba1 in critical or declining status7 for the plan year in which the employer's withdrawal occurs2 or 7,,ii7 terminates as described in section #djda;,a7a7 or #djdb4 7ii7 ,special rule for terminations ,clause 7i77,,ii7 shall apply to each employer who withdraws from a plan during a period of #c consecutive plan years that includes the withdrawal of every employer from the plan1 or the cessation of the obligation of all employers to contribute under the plan1 as described in section #djda;,a7a77#b74 ,for purposes of this clause1 withdrawal by an employer from a plan1 during a period of #c consecutive plan years within which substantially all the employers who have an obligation to contribute under the plan withdraw1 shall be presumed to be a withdrawal pursuant to an agreement or arrangement1 unless the employer proves otherwise by a preponderance of the evidence4 7,d7 ,present value ,for purposes of subparagraph 7,b77ii71 the present value of the annual payments shall be determined based on the assumptions used for the most recent actuarial valuation for the plan used to determine unfunded past service liability for funding purposes4 4 7b7 ,de minimis rule ,section #dbji of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #achi7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking unfunded vested benefits allocable under section #dbaa to and inserting applicable amount determined under section #dbja7;b77#a77;,b7 with respect to2 7,b7 in paragraph 7#b71 by striking #ej1jjj and inserting #ajj1jjj2 and 7,c7 in the flush text following paragraph 7#b7-- 7i7 by striking the unfunded vested benefits and inserting such applicable amount2 and 7ii7 by striking #ajj1jjj and inserting #bjj1jjj2 7#b7 in subsection 7b7-- 7,a7 in the matter preceding paragraph 7#a71 by striking amount determined under section #dbaa and inserting applicable amount determined under section #dbja7;b77#a77;,b7 with respect to an employer2 7,b7 in paragraph 7#b77;,b71 by striking #ajj1jjj and inserting #bej1jjj2 and 7,c7 in the flush text at the end-- 7i7 by striking the amount determined under section #dbaa for and inserting such applicable amount with respect to2 and 7ii7 by striking #aej1jjj and inserting #ejj1jjj4 7c7 ,payment of withdrawal liability ,section #dbai7;c77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acii7;c77#a77 is amended-- 7#a7 by striking so much of paragraph 7#a7 as precedes subparagraph 7,c7 and inserting3 7#a7 7,a7 7i7 ,subject to subparagraph 7,b71 an employer shall pay its liability determined under section #dbja7;b77#a7 in level annual payments determined under subparagraph 7,c7 over the applicable period of years determined under clause 7ii71 calculated as if the first payment were made on the first day of the plan year following the plan year in which the withdrawal occurs and as if each subsequent payment were made on the first day of each subsequent plan year4 ,actual payment shall commence in accordance with paragraph 7#b74 7ii7 ,for purposes of clause 7i71 if the applicable amount used under section #dbja7;b77#a77;,a7 is the amount determined-- 7,i7 under section #dbja7;b77#a77;,b77i71 the applicable period of years is the period of years necessary to amortize such amount in level annual payments determined under subparagraph 7,c71 or 7,,ii7 under section #dbja7;b77#a77;,b77ii71 the applicable period of years is #bj years 7#be years if the plan is described in section #dbja7;b77#a77;,c774 7iii7 ,for purposes of clause 7ii77,i71 the determination of the amortization period described in clause 7i7 shall be based on the assumptions used for the most recent actuarial valuation for the plan to determine unfunded past service liability for funding purposes4 7,b7 7i7 ,if any adjustment is required to the withdrawal liability amount by reason of clause 7i71 7ii71 or 7iii7 of section #dbaj7;b77#a77;,a71 modifications shall be made under subparagraph 7,a7 to reflect such adjustments in accordance with this subparagraph and in such manner as the corporation shall provide4 7ii7 ,in the case of a partial withdrawal described in section #dbje7;a71 the amount of each annual payment shall be the product of-- 7,i7 the amount determined under subparagraph 7,c7 7determined without regard to this subparagraph71 multiplied by 7,,ii7 the fraction determined under section #dbjf7;a77#b74 7iii7 ,in the case of a de minimis reduction under section #dbji1 the period of years described in subparagraph 7,a77ii77,i7 shall be adjusted so that the withdrawal liability amount1 as reduced under such section1 is amortized in level annual payments determined under subparagraph 7,c74 2 7#b7 in subparagraph 7,c7-- 7,a7 in clause 7i77,i7-- 7i7 by striking #c and inserting #e2 and 7ii7 by striking #aj and inserting #bj2 and 7,b7 by striking clause 7iii72 and 7#c7 by striking subparagraphs 7,d7 and 7,e7 and inserting the following3 7,d7 7i7 ,in the case of a subsequent partial withdrawal or a complete withdrawal that was preceded by one or more partial withdrawals1 the amount of the annual payment with respect to the subsequent partial withdrawal or complete withdrawal shall be reduced by the amounts of the payments determined under subparagraph 7,b77ii7 with respect to each of the preceding partial withdrawals4 7ii7 ,the amount of any reductions described in clause 7i7 shall be phased out consistent with the method and period of time being used by the plan to allocate unfunded vested benefits under section #dbaa4 7iii7 ,the corporation may prescribe regulations as may be necessary to provide for proper adjustments in the reduction in the payment amount under clauses 7i7 and 7ii74 4 7d7 ,amendment of plan ,section #dbaa7;c77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acia7;c77#a77 is amended-- 7#a7 by inserting 7,a7 after 7c77#a71 7#b7 by striking 7b7 or 7d74 ,a plan and inserting 87b7 or 7d74 7,b7 ,a multiemployer plan 1 and 7#c7 by striking 1 to the extent provided and all that follows and inserting 8to provide-- 7i7 that the amount of the unfunded vested benefits allocable to an employer that withdraws from the plan is an amount determined under paragraph 7#e7 of this subsection1 rather than under subsection 7b71 or 7ii7 to the extent provided in regulations prescribed by the corporation1 that the amount of the unfunded vested benefits allocable to an employer not described in section #dbjc7;b77#a77;,a7 shall be determined in a manner different from that provided in subsection 7b74 4 ,,iii ,plan governance1 disclosure1 and other reforms for multiemployer defined benefit pension plans ,a ,plan governance and operations for multiemployer plans #cja4 ,independent trustees ,section #djdb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acdb7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking a plan and inserting a single-employer or multiemployer plan2 7,b7 in paragraph 7#c7-- 7i7 by inserting with respect to a single-employer plan before the comma2 and 7ii7 by striking or2 7,c7 in paragraph 7#d71 by striking the period at the end and inserting 1 or2 and 7,d7 by inserting after paragraph 7#d7 the following3 7#e7 in the case of a multiemployer plan-- 7,a7 such plan is an eligible multiemployer plan as defined in section #dbcc;,a which fails to apply for a special partition under such section1 or 7,b7 termination of the plan would protect the interests of participants and beneficiaries4 2 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7-- 7,i7 by inserting or remove after appoint1 7,,ii7 by inserting or removal after appointment1 and 7,,iii7 by striking and at the end2 7ii7 by striking subparagraph 7,b7 and inserting the following3 7,b7 upon the petition of the corporation1 the appropriate ,united ,states district court shall appoint a trustee proposed by the corporation for-- 7i7 any multiemployer plan which is in critical status or critical and declining status 7as defined in paragraph 7#c7 or 7#g71 respectively1 of section #cje7;b771 if the court finds the appointment of the trustee would help prevent an abuse of the multiemployer insurance program or any unreasonable increase in the liability of the fund1 and 7ii7 any multiemployer plan which has terminated under section #djda;,a7a71 unless a party opposing appointment of a trustee shows that such appointment would be materially adverse to the interests of the plan participants and beneficiaries in the aggregate1 and 2 and 7iii7 by adding at the end the following3 7,c7 in the case of a special partition of a plan under section #dbcc;,a1 the corporation may remove and appoint trustees subject to the provisions of paragraph 7#e74 2 and 7,b7 by adding at the end the following3 7#d7 7,a7 ,a trustee appointed to a multiemployer plan under paragraph 7#b77;,b71 7#b77;,c71 or 7#c7 shall report plan activity to the corporation1 in the form and manner provided for in the judicial or administrative order or agreement appointing the trustee4 ,a trustee so appointed may remain a trustee engaged in the ongoing governance of a multiemployer plan whether or not the corporation initiates plan termination proceedings under subsection 7c74 7,b7 ,notwithstanding plan or trust documents to the contrary1 in addition to any powers described in subsection 7d71 the order or agreement appointing a trustee under paragraph 7#b77;,b71 7#b77;,c71 or 7#c7 may include authority for the corporation to monitor and oversee plan activity and to review and approve trustee decisions related to funding or financial activities of the plan4 7#e7 7,a7 ,the corporation may remove any trustees of an original plan that received a special partition under section #dbcc;,a if the corporation determines that the actions of such trustees unreasonably increased the risk of loss to participants in the plan or to the corporation1 and may appoint #a or more new trustees as replacements4 7,b7 ,the corporation may appoint a special master1 which may be an employee of the corporation1 the duties of whom shall be disclosed to participants and contributing employers in accordance with regulations to be issued by the corporation1 with respect to each original plan1 as defined in section #dbcc;,a4 ,such special master shall be invited to every meeting of the plan's board of trustees or any committees thereof2 shall be furnished any requested actuarial or financial information by the plan or agents thereof2 shall receive all creditable complaints or other information from participants1 beneficiaries1 employers1 plan employees and contractors1 and any other person regarding the plan's operations2 and shall furnish the corporation with semiannual reports of the board's activities1 the plan's performance1 and the potential liabilities of the corporation with respect to the plan4 ,the trustees shall provide the special master with not less than #cj days notice prior to taking any action that could increase the risk of loss to the corporation1 and the special master shall report such potential action to the corporation within #e days of receiving such notice from the trustees4 2 7#c7 in subsection 7c77#a7-- 7,a7 in the second sentence1 by striking subsection 7b7 and inserting subsection 7b77#a72 and 7,b7 in the third sentence1 by inserting 1 including1 in the case of a multiemployer plan1 by requiring the withdrawal of employers before the period2 and 7#d7 in subsection 7d77#a7-- 7,a7 in subparagraph 7,a71 by striking subsection 7b7 in the second sentence and inserting subsection 7b77#a72 and 7,b7 in subparagraph 7,b71 by striking ,if and inserting ,if a trustee is appointed under paragraph 7#b7 or 7#c7 of subsection 7b71 or if4 #cjb4 ,investigatory authority ,section #djjc7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjc7;a77 is amended to read as follows3 7a7 7#a7 ,the corporation may1 in its discretion1 investigate any facts1 conditions1 practices1 or matters as the corporation determines necessary or proper to aid in-- 7,a7 the enforcement of any provision of this title or any rule or regulation thereunder2 7,b7 the prescribing of rules and regulations under this title2 or 7,c7 evaluating the corporation's liability or potential liability with respect to a plan4 7#b7 ,any information or documentary material submitted to the corporation pursuant to this section1 if clearly designated by the person making the submission as confidential 7on each page in the case of a document1 and in the file name in the case of a digital file71 shall be exempt from disclosure under section #eeb of title #e1 ,united ,states ,code1 and no such information or documentary material may be made public1 except as may be relevant to any administrative or judicial action or proceeding1 including an informal rulemaking4 7#c7 ,the corporation may require or permit any person to submit a statement in writing1 under oath or otherwise as the corporation determines1 as to all facts and circumstances concerning the matter to be investigated4 7#d7 ,the corporation shall annually audit a statistically significant number of plans terminating under section #djda7;b7 to determine whether participants and beneficiaries have received their benefit commitments and whether section #djej7;a7 has been satisfied4 ,each audit shall include a statistically significant number of participants and beneficiaries4 4 #cjc4 ,conditions on financial assistance 7a7 ,in general ,section #dbfa7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adca7;b77 is amended-- 7#a7 in paragraph 7#a71 by striking the period at the end and inserting 1 or to prevent an abuse of the multiemployer insurance program or any unreasonable increase in the liability of the fund4 ,the corporation shall provide the plan sponsor written notice of each condition on financial assistance and a written explanation of its determination4 ,if the sponsor fails to satisfy timely a condition on financial assistance1 the corporation may withhold financial assistance until the condition is satisfied42 and 7#b7 by adding at the end the following3 7#c7 ,the conditions described in paragraph 7#a7 may include an offset for the guaranteed benefits of a participant whose benefit in excess of the benefit guaranteed under this title is provided by another plan1 or in the case of a plan that has not yet terminated1 the cessation of future accruals or a requirement that contribution amounts or annual withdrawal liability payment amounts under section #dbai be maintained as if the employer had withdrawn on the date of insolvency4 4 7b7 ,conforming amendment ,section #dbfa7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adca7;a77 is amended by striking section #dbde7;f7 or section #dbha7;d7 and inserting section #dbde7;e7 or #dbha4 #cjd4 ,excise tax on excess compensation of covered employees of partitioned multiemployer plans 7a7 ,in general ,chapter #dc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #dihj;,i4 ,tax on excess compensation of covered employees of partitioned multiemployer plans 7a7 ,tax imposed ,in the case of an applicable multiemployer plan1 there is hereby imposed an excise tax for each plan year in an amount equal to the product of-- 7#a7 the rate of tax under section #aa for taxable years beginning in the calendar year in which such plan year begins1 and 7#b7 so much of the remuneration paid by the applicable multiemployer plan for the plan year with respect to employment of any covered employee as exceeds #ejj1jjj4 ,for purposes of the preceding sentence1 remuneration shall be treated as paid when there is no substantial risk of forfeiture 7within the meaning of section #deg7;f77#c77;,b77 of the rights to such remuneration4 7b7 ,liability for tax ,the applicable multiemployer plan shall be liable for the tax imposed under subsection 7a74 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,applicable multiemployer plan ,the term applicable multiemployer plan means any multiemployer plan which is an original plan 7as defined in section #dbcc;,a7d77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd7 with respect to a multiemployer plan which was partitioned pursuant to an order by the ,pension ,benefit ,guaranty ,corporation under section #dbcc;,a of such ,act4 7#b7 ,covered employee ,the term covered employee means any employee 7including any former employee7 of an applicable multiemployer plan if the employee-- 7,a7 is one of the #e highest compensated employees of the plan for the plan year1 or 7,b7 was a covered employee of the organization 7or any predecessor7 for any preceding plan year beginning after the date of the enactment of this section4 7#c7 ,remuneration ,the term remuneration means wages 7as defined in section #cdja7;a774 7d7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to prevent avoidance of the tax under this section1 including regulations to prevent avoidance of such tax through the performance of services other than as an employee or by providing compensation through a pass-through or other entity 7including a related entity7 to avoid such tax4 4 7b7 ,conforming amendment ,the table of sections for chapter #dc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #dihj;,i4 ,tax on excess compensation of covered employees of partitioned multiemployer plans4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after the date of enactment of this ,act4 ,b ,reportable events for multiemployer plans #caa4 ,reportable events 7a7 ,additional reportable events 7#a7 ,in general ,section #djdc7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acdc7;c77 is amended by striking or at the end of paragraph 7#ab71 by redesignating paragraph 7#ac7 as paragraph 7#ag71 and by inserting after paragraph 7#ab7 the following new paragraphs3 7#ac7 when the plan sponsor of a multiemployer plan1 or such sponsor's delegate1 convenes or otherwise takes action to adopt any amendment 7or accepts any collective bargaining agreement7 that would exclude newly hired employees from participation in the plan1 or any amendment 7or agreement7 that would substantially reduce the rate of future benefit accruals or the contribution rate for any participants under the plan2 7#ad7 when-- 7,a7 the plan sponsor of a multiemployer plan1 or such sponsor's delegate1 convenes or otherwise takes action to adopt2 or 7,b7 the plan sponsor receives notice under subsection 7f7 or otherwise becomes aware that the bargaining parties have negotiated an agreement to adopt2 a new pension plan1 including any plan a trust forming part of which is a qualified trust under section #dja7;a7 of the ,internal ,revenue ,code of #aihf and any plan treated as a welfare plan by reason of section #c7b77;,b77ii71 the expected participants of which are expected to substantially overlap with the active participants in a preexisting plan2 7#ae7 when an event pertaining to a multiemployer plan occurs that is prescribed by the corporation in regulations1 if the event materially jeopardizes the security of participant benefits or the financial condition of the plan1 or is likely to increase the risk of loss to the corporation2 7#af7 when a multiemployer plan has1 or will foreseeably have1 only one trustee or no trustees on its board2 or 4 7#b7 ,notification by bargaining parties ,section #djdc of such ,act 7#bi ,u4,s4,c4 #acdc7 is amended by redesignating subsection 7f7 as subsection 7g71 and by inserting after subsection 7e7 the following new subsection3 7f7 ,notification by bargaining parties ,not later than #fj days prior to the adoption of a new pension plan described in subsection 7c77#ad71 the bargaining parties shall notify the plan sponsor of the negotiation of an agreement to adopt such plan4 4 7#c7 ,conforming amendment ,section #djdc7;b77#c7 of such ,act 7#bi ,u4,s4,c4 #acdc7;b77#c77 is amended by striking 7#ac7 and inserting 7#ag74 7b7 ,application to plans 7#a7 ,in general ,section #djdc7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acdc7;a77 is amended by inserting 1 plan sponsor 7in the case of a multiemployer plan71 after plan administrator4 7#b7 ,notification that event is about to occur ,section #djdc7;b7 of such ,act 7#bi ,u4,s4,c4 #acdc7;b77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the right2 7ii7 by striking shall be applicable to a contributing sponsor and inserting 8shall be applicable-- 7,a7 to any plan sponsor of a multiemployer plan2 and 7,b7 to any contributing sponsor 2 and 7iii7 in the last sentence1 by striking subparagraph 7,b7 and inserting clause 7ii72 7,b7 by striking ,this subsection in paragraph 7#b7 and inserting ,in the case of a single-employer plan1 this subsection2 7,c7 by striking any contributing sponsor in paragraph 7#d7 and inserting any plan sponsor of a multiemployer plan or any contributing sponsor2 7,d7 by redesignating paragraph 7#d71 as so amended1 as paragraph 7#e72 and 7,e7 by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,no later than #fj days prior to an event described in paragraph 7#ac71 7#ad77;,a71 7#ae71 or 7#af7 of subsection 7c71 the plan sponsor of a multiemployer plan shall notify the corporation that the event is about to occur4 4 7c7 ,technical corrections 7#a7 ,section #djde7;c77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acde7;c77#a77 is amended by striking #djdc7;b77#g7 and inserting #djdc7;c77#g74 7#b7 ,section #djfe7b7 of such ,act 7#bi ,u4,s4,c4 #acfe7b77 is amended by striking #djdc7;b7 and inserting #djdc7;c74 7d7 ,effective date ,the amendments made by this section shall apply to reportable events 7as defined in section #djdc7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acdc7;c777 occurring after the date of the enactment of this ,act4 ,c ,funding notices to participants in multiemployer plans #cba4 ,improved multiemployer plan disclosure 7a7 ,plan funding notices ,section #aja7;f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;f77 is amended-- 7#a7 in paragraph 7#b77;,b7-- 7,a7 in clause 7iv71 by striking setting forth and inserting describing how a person may obtain information regarding2 7,b7 by striking clauses 7v7 and 7vi72 7,c7 by redesignating clauses 7vii7 through 7xi7 as clauses 7v7 through 7ix71 respectively2 7,d7 in clause 7vi71 as so redesignated-- 7i7 by striking 7,i7 in the case of and inserting in the case of2 7ii7 by striking 1 or and inserting a comma2 and 7iii7 by striking subclause 7,,ii72 and 7,e7 by amending clause 7vii71 as so redesignated1 to read as follows3 7vii7 7,i7 in the case of a single-employer plan1 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation1 and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply1 and 7,,ii7 in the case of a multiemployer plan1 a statement that eligible benefits are guaranteed by the ,pension ,benefit ,guaranty ,corporation1 and a statement of how to obtain both a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply1 2 and 7#b7 in paragraph 7#d77;,c7-- 7,a7 by striking 7,c7 may be provided and inserting 7,c77i7 subject to clause 7ii71 may be provided2 7,b7 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7ii7 in the case of such a notice provided to the ,pension ,benefit ,guaranty ,corporation1 shall be in an electronic format in such manner prescribed in regulations of such ,corporation4 4 7b7 ,disclosures by plans regarding status 7#a7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd ,section #cje7;b77#d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;b77#d771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is further amended-- 7,a7 in the paragraph heading1 by striking by plan actuary and inserting and report2 7,b7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,in general ,not later than the #ijth day of each plan year of a multiemployer plan1 the plan sponsor shall file1 in accordance with regulations prescribed by the ,,erisa agencies1 a report that contains-- 7i7 documentation from the plan actuary certifying to the ,,erisa agencies and to the plan sponsor-- 7,i7 whether or not the plan is in unrestricted or stable status for such plan year1 whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the #e succeeding plan years1 7,,ii7 in the case of a plan which is in a funding improvement or rehabilitation period1 whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and1 if not1 a summary of the primary reasons the plan is not making the scheduled progress1 7,,iii7 the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage1 7,,iv7 a projection of the funding standard account on a year-by-year basis for the current plan year and the #ad succeeding plan years and a statement of the actuarial assumptions for such projections1 and 7,v7 7aa7 subject to item 7bb71 a projection of the cash flow of the plan and actuarial assumptions for the current plan year and #ad succeeding plan years1 and 7bb7 in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year1 the projection of the cash flow of the plan and actuarial assumptions for the current year and #bi succeeding plan years1 7ii7 as of the last day of the prior plan year1 a good faith determination of-- 7,i7 the fair market value of the assets of the plan1 7,,ii7 the number of participants who are-- 7aa7 retired or separated from service and are receiving benefits1 7bb7 retired or separated participants entitled to future benefits1 and 7cc7 active participants under the plan1 7,,iii7 the total value of all benefits paid during the prior plan year1 7,,iv7 the total value of all contributions and withdrawal liability payments made to the plan during the prior plan year1 and 7,v7 the total value of all investment gains or losses during the prior plan year1 7iii7 a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute1 7iv7 a copy of any funding improvement plan or rehabilitation plan1 and any update thereto or modification thereof1 that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and1 if applicable1 after the filing of the report required by this subparagraph for the prior plan year1 7v7 in the case of any plan amendment1 scheduled benefit increase or reduction1 or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year 7as defined in regulations by the ,,erisa agencies71 an explanation of the amendment1 scheduled increase or reduction1 or event1 and a projection to the end of such plan year of the effect of the amendment1 scheduled increase or reduction1 or event on plan liabilities1 7vi7 in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period1 a description of all reasonable measures1 whether or not such measures were implemented1 and a summary of the consideration of such measures1 7vii7 a statement1 containing the information available to the plan sponsor1 describing-- 7,i7 the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year1 7,,ii7 any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction1 and a comparison to contributions projected previously1 7,,iii7 any material reduction in the number of active plan participants and the reason for such reduction1 and 7,,iv7 the annual withdrawal liability payment each withdrawn employer is obligated to pay to the plan for the plan year1 whether that amount was collected by the plan 7and if not1 the amount that was collected71 and the remaining years on the employer's obligation to make withdrawal liability payments1 and 7viii7 such other information as may be required by the ,,erisa agencies by regulation4 2 7,c7 by striking subparagraph 7,c7 and inserting the following3 7,c7 ,form and manner ,the report required by subparagraph 7,a7 shall be filed electronically in accordance with regulations prescribed by the ,,erisa agencies4 2 7,d7 in subparagraph 7,d7-- 7i7 by redesignating clauses 7ii71 7iii71 7iv71 and 7v7 as clauses 7iii71 7iv71 7v71 and 7vi71 respectively2 7ii7 by inserting after clause 7i7 the following3 7ii7 ,plans in endangered or critical status ,if it is certified under subparagraph 7,a7 that a multiemployer plan is or will be in endangered or critical status1 the plan sponsor shall include in the notice under clause 7i7-- 7,i7 a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan1 as appropriate1 adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement1 7,,ii7 a summary of any funding improvement or rehabilitation plan1 and any update thereto or modification thereof1 adopted under this section prior to the furnishing of such notice1 7,,iii7 a summary of the rules governing insolvency1 including the limitations on benefit payments1 and 7,,iv7 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply4 2 and 7iii7 in clause 7v71 as so redesignated-- 7,i7 by striking ,the ,secretary of the ,treasury1 in consultation with the ,secretary and inserting ,the ,,erisa agencies2 and 7,,ii7 by striking 7ii7 and 7iii7 and inserting 7ii71 7iii71 and 7iv72 and 7,e7 by adding at the end the following3 7,e7 ,designation and coordination ,the ,,erisa agencies shall-- 7i7 designate one ,,erisa agency to receive the report described in subparagraph 7,a7 on behalf of all the ,,erisa agencies1 which shall each have full access to such report2 and 7ii7 consult with each other and develop rules1 regulations1 practices1 and forms1 which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort1 duplication of reporting1 conflicting or overlapping requirements1 and the burden of compliance with such provisions by plan administrators and plan sponsors4 7,f7 ,,erisa agencies ,in this paragraph1 the term ,,erisa agencies means the ,secretary1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation4 4 7#b7 ,amendments to #aihf ,code ,section #dcb7;b77#d7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is further amended-- 7,a7 in the paragraph heading1 by striking by plan actuary and inserting and report2 7,b7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,in general ,not later than the #ijth day of each plan year of a multiemployer plan1 the plan sponsor shall file1 in accordance with regulations prescribed by the ,,erisa agencies1 a report that contains-- 7i7 documentation from the plan actuary certifying to the ,,erisa agencies and to the plan sponsor-- 7,i7 whether or not the plan is in unrestricted or stable status for such plan year1 whether or not the plan is in endangered status for such plan year and whether or not the plan is or will be in critical status for such plan year or any of the #e succeeding plan years1 7,,ii7 in the case of a plan which is in a funding improvement or rehabilitation period1 whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and1 if not1 a summary of the primary reasons the plan is not making the scheduled progress1 7,,iii7 the funded percentage of the plan determined as of the first day of the current plan year and the value of assets and liabilities used to calculate such funded percentage1 7,,iv7 a projection of the funding standard account on a year-by-year basis for the current plan year and the #ad succeeding plan years and a statement of the actuarial assumptions for such projections1 and 7,v7 7aa7 subject to item 7bb71 a projection of the cash flow of the plan and actuarial assumptions for the current plan year and #ad succeeding plan years1 and 7bb7 in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year1 the projection of the cash flow of the plan and actuarial assumptions for the current year and #bi succeeding plan years1 7ii7 as of the last day of the prior plan year1 a good faith determination of-- 7,i7 the fair market value of the assets of the plan1 7,,ii7 the number of participants who are-- 7aa7 retired or separated from service and are receiving benefits1 7bb7 retired or separated participants entitled to future benefits1 and 7cc7 active participants under the plan1 7,,iii7 the total value of all benefits paid during the prior plan year1 7,,iv7 the total value of all contributions and withdrawal liability payments made to the plan during the prior plan year1 and 7,v7 the total value of all investment gains or losses during the prior plan year1 7iii7 a description of any material changes during the previous plan year to the rates at which participants accrue benefits or the rate at which employers contribute1 7iv7 a copy of any funding improvement plan or rehabilitation plan1 and any update thereto or modification thereof1 that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and1 if applicable1 after the filing of the report required by this subparagraph for the prior plan year1 7v7 in the case of any plan amendment1 scheduled benefit increase or reduction1 or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year 7as defined in regulations by the ,,erisa agencies71 an explanation of the amendment1 scheduled increase or reduction1 or event1 and a projection to the end of such plan year of the effect of the amendment1 scheduled increase or reduction1 or event on plan liabilities1 7vi7 in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that1 based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures1 the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period1 a description of all reasonable measures1 whether or not such measures were implemented1 and a summary of the consideration of such measures1 7vii7 a statement1 containing the information available to the plan sponsor1 describing-- 7,i7 the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year1 and a comparison to contributions projected previously1 7,,ii7 any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction1 7,,iii7 any material reduction in the number of active plan participants and the reason for such reduction1 and 7,,iv7 the annual withdrawal liability payment each withdrawn employer is obligated to pay to the plan for the plan year1 whether that amount was collected by the plan 7and if not1 the amount that was collected71 and the remaining years on the employer's obligation to make withdrawal liability payments1 and 7viii7 such other information as may be required by the ,,erisa agencies by regulation4 2 7,c7 by striking subparagraph 7,c7 and inserting the following3 7,c7 ,form and manner ,the report required by subparagraph 7,a7 shall be filed electronically in accordance with regulations prescribed by the ,,erisa agencies4 2 7,d7 in subparagraph 7,d7-- 7i7 by redesignating clauses 7ii71 7iii71 7iv71 and 7v7 as clauses 7iii71 7iv71 7v71 and 7vi71 respectively2 7ii7 by inserting after clause 7i7 the following3 7ii7 ,plans in endangered or critical status ,if it is certified under subparagraph 7,a7 that a multiemployer plan is or will be in endangered or critical status1 the plan sponsor shall include in the notice under clause 7i7-- 7,i7 a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan1 as appropriate1 adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement1 7,,ii7 a summary of any funding improvement or rehabilitation plan1 and any update thereto or modification thereof1 adopted under this section prior to the furnishing of such notice1 7,,iii7 a summary of the rules governing insolvency1 including the limitations on benefit payments1 and 7,,iv7 a general description of the benefits under the plan which are eligible to be guaranteed by the ,pension ,benefit ,guaranty ,corporation and an explanation of the limitations on the guarantee and the circumstances under which such limitations apply4 2 and 7iii7 in clause 7v71 as so redesignated-- 7,i7 by striking ,the ,secretary of the ,treasury1 in consultation with the ,secretary and inserting ,the ,,erisa agencies2 and 7,,ii7 by striking 7ii7 and 7iii7 and inserting 7ii71 7iii71 and 7iv72 and 7,e7 by adding at the end the following3 7,e7 ,designation and coordination ,the ,,erisa agencies shall-- 7i7 designate one ,,erisa agency to receive the report described in subparagraph 7,a7 on behalf of all the ,,erisa agencies1 which shall each have full access to such report2 and 7ii7 consult with each other and develop rules1 regulations1 practices1 and forms1 which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort1 duplication of reporting1 conflicting or overlapping requirements1 and the burden of compliance with such provisions by plan administrators and plan sponsors4 7,f7 ,,erisa agencies ,in this paragraph1 the term ,,erisa agencies means the ,secretary1 the ,secretary of ,labor1 and the ,pension ,benefit ,guaranty ,corporation4 4 7#c7 ,investigations ,section #djjc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjc7 is amended by adding at the end the following3 7g7 ,the corporation may investigate or review any facts1 conditions1 practices1 or other matters it determines necessary or proper related to the actuarial certification and report by multiemployer plans under section #cje7;b77#d77;,a71 or to obtain such information as any duly authorized committee or subcommittee of the ,congress may request with respect to such plans4 ,any information or documentary material submitted to the corporation pursuant to this section1 if clearly designated by the person making the submission as confidential 7on each page in the case of a document1 and in the file name in the case of a digital file71 shall be exempt from disclosure under section #eeb of title #e1 ,united ,states ,code1 and no such information or documentary material may be made public1 except as may be relevant to any administrative or judicial action or proceeding1 including an informal rulemaking4 4 #cbb4 ,penalties for failure to provide notices 7a7 ,in general ,section #ejb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7 is amended-- 7#a7 in paragraph 7#g7-- 7,a7 by striking 7#g7 ,the ,secretary and inserting 7#g77;,a7 ,the ,secretary2 and 7,b7 by adding at the end the following3 7,b7 ,the ,secretary may assess a civil penalty against a plan sponsor of up to #aaj per day from the date of the plan administrator's or sponsor's failure or refusal to provide the relevant notices under section #aja7;f7 or section #cje7;b77#d77;,d7 to a recipient other than the ,secretary or the ,pension ,benefit ,guaranty ,corporation4 ,for purposes of this paragraph1 each violation with respect to any single recipient shall be treated as a separate violation4 2 and 7#b7 by adding at the end the following3 7#ac7 7,a7 ,the ,secretary may assess a civil penalty against any plan sponsor of up to #b1adj per day from the date of the plan sponsor's failure to file with the ,secretary or the ,pension ,benefit ,guaranty ,corporation the notice required under section #cje7;b77#d77;,d7 or with the ,pension ,benefit ,guaranty ,corporation the notice required under section #aja7;f74 7,b7 ,the ,secretary may assess a civil penalty against any plan sponsor of up to #a1ajj per day from the date of the plan sponsor's failure to file with the ,,erisa agency designated in accordance with subparagraph 7,e7 of section #cje7;b77#d7 the report under subparagraph 7,a7 of such section4 4 7b7 ,conforming amendment ,section #ejb7;a77#f7 of such ,act is amended by striking or 7#i7 and inserting 7#i71 7#aj71 or 7#ac74 ,d ,consistency of criminal penalties #cca4 ,consistency of criminal penalties ,part ,i of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in section #ffd1 in the first undesignated paragraph1 by striking five years and inserting #aj years2 7#b7 in section #ajbg1 by striking five years and inserting #aj years2 and 7#c7 in section #aied1 in the undesignated matter following paragraph 7#d71 by striking three years and inserting #aj years4 ,,iv ,other multiemployer plan reforms #dja4 ,clarification of fiduciary duty of retiree representative who is a trustee 7a7 ,amendment of ,internal ,revenue ,code of #aihf ,subclause 7,,iii7 of section #dcb7;f77#i77;,b77v7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is amended by striking the period and inserting 1 or to any other duties performed by such person pursuant to such person's role as a plan trustee44 7b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,subclause 7,,iii7 of section #cje7;f77#i77;,b77v7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,b77v771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is amended by striking the period and inserting 1 or to any other duties performed by such person pursuant to such person's role as a plan trustee44 7c7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #djb4 ,safe harbors 7a7 ,amendments to ,internal ,revenue ,code of #aihf 7#a7 ,equitable distribution of benefit suspensions ,clause 7vi7 of section #dcb7;f77#i77;,d7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is amended by adding at the end the following flush language3 ,for purposes of the preceding sentence1 a suspension of benefits in the form of a flat percentage reduction in benefits which is applied in the same manner to all participants and beneficiaries 7before application of clauses 7ii7 and 7iii77 shall be treated as being equitably distributed across the participant and beneficiary population4 4 7#b7 ,application assumptions ,clause 7v7 of section #dcb7;f77#i77;,g7 of such ,code1 as so redesignated and in effect1 is amended-- 7,a7 by striking ,standard for accepting in the heading and inserting ,standards for assumptions and accepting1 and 7,b7 by striking ,in evaluating and inserting ,the ,secretary1 in consultation with the ,pension ,benefit ,guaranty ,corporation and the ,secretary of ,labor1 shall promulgate regulations regarding the actuarial assumptions that plans may use for purposes of the application under this subparagraph4 ,such regulations shall create safe harbors regarding assumptions for future rate of investment returns1 future industry activity and contribution base units1 mortality1 and other assumptions as determined by the ,secretary1 and shall describe the situations in which actuarial assumptions may change during review of an application without the withdrawal and resubmission of the application4 ,in evaluating4 7b7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,equitable distribution of benefit suspensions ,clause 7vi7 of section #cje7;f77#i77;,d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,d771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is amended by adding at the end the following flush language3 ,for purposes of the preceding sentence1 a suspension of benefits in the form of a flat percentage reduction in benefits which is applied in the same manner to all participants and beneficiaries 7before application of clauses 7ii7 and 7iii77 shall be treated as being equitably distributed across the participant and beneficiary population4 4 7#b7 ,application assumptions ,clause 7v7 of section #cje7;f77#i77;,g7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,g771 as so redesignated and in effect1 is amended-- 7,a7 by striking ,standard for accepting in the heading and inserting ,standards for assumptions and accepting1 and 7,b7 by striking ,in evaluating and inserting ,the ,secretary of the ,treasury1 in consultation with the ,pension ,benefit ,guaranty ,corporation and the ,secretary of ,labor1 shall promulgate regulations regarding the actuarial assumptions that plans may use for purposes of the application under this subparagraph4 ,such regulations shall create safe harbors regarding assumptions for future rate of investment returns1 future industry activity and contribution base units1 mortality1 and other assumptions as determined by the ,secretary1 and shall describe the situations in which actuarial assumptions may change during review of an application without the withdrawal and resubmission of the application4 ,in evaluating4 7c7 ,effective dates 7#a7 ,in general ,the amendments made by subsections 7a77#a7 and 7b77#a7 shall apply to suspensions of benefits taking effect after the date of the enactment of this ,act4 7#b7 ,applications ,the amendments made by subsections 7a77#b7 and 7b77#b7 shall apply to applications submitted after the date of the enactment of this ,act4 #djc4 ,clarification of notice and comment process 7a7 ,amendments to ,internal ,revenue ,code of #aihf 7#a7 ,notice to participants ,subparagraph 7,f7 of section #dcb7;f77#i7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is amended by adding at the end the following new clause3 7vi7 ,de minimis changes ,notice under clause 7i7 is not required in the case of a change to a notice previously issued1 and an application previously submitted under subparagraph 7,g71 if such change would have a de minimis effect on the suspension of benefits proposed1 such as a change of #e percent or less 7whether increase or decrease7 of a participant's post-suspension benefits4 4 7#b7 ,solicitation of comments 7,a7 ,de minimis changes ,clause 7ii7 of section #dcb7;f77#i77;,g7 of such ,code1 as so redesignated and in effect1 is amended by adding at the end the following3 ,the preceding sentences shall not apply in the case of a resubmission of an application previously submitted if such change would have a de minimis effect on the suspension of benefits proposed44 7,b7 ,extension of period for correction of defect ,clause 7iii7 of section #dcb7;f77#i77;,g7 of such ,code1 as so redesignated and in effect1 is amended by inserting after the second sentence the following3 ,if the only failure with respect to an application is a failure to provide adequate notice to participants under subparagraph 7,f71 the ,secretary may extend the #bbe-;day deadline for consideration of the application by notice to the plan sponsor44 7b7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,notice to participants ,subparagraph 7,f7 of section #cje7;f77#i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f77#i771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is amended by adding at the end the following new clause3 7vi7 ,de minimis changes ,notice under clause 7i7 is not required in the case of a change to a notice previously issued1 and an application previously submitted under subparagraph 7,g71 if such change would have a de minimis effect on the suspension of benefits proposed1 such as a change of #e percent or less 7whether increase or decrease7 of a participant's post-suspension benefits4 4 7#b7 ,solicitation of comments 7,a7 ,de minimis changes ,clause 7ii7 of section #cje7;f77#i77;,g7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,g771 as so redesignated and in effect1 is amended by adding at the end the following3 ,the preceding sentences shall not apply in the case of a resubmission of an application previously submitted if such change would have a de minimis effect on the suspension of benefits proposed44 7,b7 ,extension of period for correction of defect ,clause 7iii7 of section #cje7;f77#i77;,g7 of such ,act 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,g771 as so redesignated and in effect1 is amended by inserting after the second sentence the following3 ,if the only failure with respect to an application is a failure to provide adequate notice to participants under subparagraph 7,f71 the ,secretary may extend the #bbe-;day deadline for consideration of the application by notice to the plan sponsor44 7c7 ,effective date ,the amendments made by this section shall apply to applications1 or changes to applications1 submitted after the date of the enactment of this ,act4 #djd4 ,protection of participants receiving disability benefits 7a7 ,amendment to ,internal ,revenue ,code of #aihf ,clause 7iii7 of section #dcb7;f77#i77;,d7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is amended to read as follows3 7iii7 ,no benefits based on disability 7as defined under the plan7 may be suspended under this paragraph if the participant or beneficiary is disabled 7as so defined7 or receiving disability benefits under the plan as of the date of the suspension of benefits4 ,no benefits under the plan may be suspended under this paragraph of any participant or beneficiary who is entitled to a benefit under title ,,ii of the ,social ,security ,act on the basis of a disability 7as defined in section #bbc7;d77#b7 of such ,act7 as of such date4 4 7b7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,clause 7iii7 of section #cje7;f77#i77;,d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;f77#i77;,d771 as redesignated by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is amended to read as follows3 7iii7 ,no benefits based on disability 7as defined under the plan7 may be suspended under this paragraph if the participant or beneficiary is disabled 7as so defined7 or receiving disability benefits under the plan as of the date of the suspension of benefits4 ,no benefits under the plan may be suspended under this paragraph of any participant or beneficiary who is entitled to a benefit under title ,,ii of the ,social ,security ,act on the basis of a disability 7as defined in section #bbc7;d77#b7 of such ,act7 as of such date4 4 7c7 ,effective date ,the amendments made by this section shall apply to suspensions of benefits taking effect after the date of the enactment of this ,act4 #dje4 ,model notice ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,labor and the ,pension ,benefit ,guaranty ,corporation1 shall develop a #a-page1 plain-language1 cover-page format for the model notice under section #dcb7;e77#i77;,f77v7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of this ,act7 and section #cje7;e77#i77;,f77v7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe7;e77#i77;,f77v771 as so in effect4 ,v ,alternative plan structures #eja4 ,composite plans 7a7 ,amendment to the ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is amended by adding at the end the following3 #h ,composite ,plans and ,legacy ,plans #hja4 ,composite plan defined 7a7 ,in general ,for purposes of this ,act1 the term composite plan means a pension plan-- 7#a7 which is a multiemployer plan that is neither a defined benefit plan nor a defined contribution plan2 7#b7 the terms of which provide that the plan is a composite plan for purposes of this title with respect to which not more than one multiemployer defined benefit plan is treated as a legacy plan within the meaning of section #hje1 unless there is more than one legacy plan following a merger of composite plans under section #hjf2 7#c7 which provides systematically for the payment of benefits-- 7,a7 objectively calculated pursuant to a nondiscretionary formula specified in the plan document with respect to plan participants for life2 and 7,b7 in the form of life annuities1 except for benefits which under section #bjc7;e7 may be immediately distributed without the consent of the participant2 7#d7 for which the anticipated employer contributions to the plan for the first plan year are at least #abj percent of the normal cost for the plan year2 7#e7 which requires-- 7,a7 an annual valuation of the liability of the plan as of a date within the plan year to which the valuation refers or within one month prior to the beginning of such year2 7,b7 an annual actuarial determination of the plan's current funded ratio and projected funded ratio under section #hjb7;a72 7,c7 corrective action through a realignment program pursuant to section #hjc whenever the plan's projected funded ratio is below #abj percent for the plan year2 and 7,d7 an annual notification to each participant describing benefits under the plan and explaining that such benefits may be subject to reduction under a realignment program pursuant to section #hjc based on the plan's funded status in future plan years2 and 7#f7 the board of trustees of which includes at least one retiree or beneficiary in pay status during each plan year following the first plan year in which at least #e percent of the participants in the plan are retirees or beneficiaries in pay status4 7b7 ,transition from a multiemployer defined benefit plan 7#a7 ,in general ,the plan sponsor of a defined benefit plan that is a multiemployer plan may1 subject to paragraph 7#b71 amend the plan to incorporate the features of a composite plan as a component of the multiemployer plan separate from the defined benefit plan component1 except in the case of a defined benefit plan for which the plan actuary has certified under section #cje7;b77#d7 that the plan is or will be in endangered or critical status for the plan year in which such amendment would become effective or in endangered or critical status for any of the succeeding #e plan years4 7#b7 ,requirements ,any amendment pursuant to paragraph 7#a7 to incorporate the features of a composite plan as a component of a multiemployer plan shall-- 7,a7 apply with respect to all collective bargaining agreements providing for contributions to the multiemployer plan on or after the effective date of the amendment2 7,b7 apply with respect to all participants in the multiemployer plan for whom contributions are made to the multiemployer plan on or after the effective date of the amendment2 7,c7 specify that the effective date of the amendment is-- 7i7 the first day of a specified plan year following the date of the adoption of the amendment1 except that the plan sponsor may alternatively provide for a separate effective date with respect to each collective bargaining agreement under which contributions to the multiemployer plan are required1 which shall occur on the first day of the first plan year beginning after the termination1 or if earlier1 the re-opening1 of each such agreement1 or such earlier date as the parties to the agreement and the plan sponsor of the multiemployer plan shall agree to2 and 7ii7 not later than the first day of the fifth plan year beginning on or after the date of the adoption of the amendment2 7,d7 specify that1 as of the amendment's effective date1 no further benefits shall accrue under the defined benefit component of the multiemployer plan2 and 7,e7 specify that1 as of the amendment's effective date1 the plan sponsor of the multiemployer plan shall be the plan sponsor of both the composite plan component and the defined benefit plan component of the plan4 7#c7 ,special rules ,if a multiemployer plan is amended pursuant to paragraph 7#a7-- 7,a7 the requirements of this title and title ,,iv shall be applied to the composite plan component and the defined benefit plan component of the multiemployer plan as if each such component were maintained as a separate plan2 and 7,b7 the assets of the composite plan component and the defined benefit plan component of the plan shall be held in a single trust forming part of the plan under which the trust instrument expressly provides-- 7i7 for separate accounts 7and appropriate records7 to be maintained to reflect the interest which each of the plan components has in the trust1 including separate accounting for additions to the trust for the benefit of each plan component1 disbursements made from each plan component's account in the trust1 investment experience of the trust allocable to that account1 and administrative expenses 7whether direct expenses or shared expenses allocated proportionally71 and permits1 but does not require1 the pooling of some or all of the assets of the two plan components for investment purposes1 subject to the judgment of the plan fiduciaries2 and 7ii7 that the assets of each of the two plan components shall be held1 invested1 reinvested1 managed1 administered and distributed for the exclusive benefit of the participants and beneficiaries of each such plan component1 and in no event shall the assets of one of the plan components be available to pay benefits due under the other plan component4 7#d7 ,not a termination event ,notwithstanding section #djda;,a1 an amendment pursuant to paragraph 7#a7 to incorporate the features of a composite plan as a component of a multiemployer plan does not constitute termination of the multiemployer plan4 7#e7 ,notice to the ,secretary 7,a7 ,notice ,the plan sponsor of a composite plan shall provide notice to the ,secretary of the intent to establish the composite plan 7or1 in the case of a composite plan incorporated as a component of a multiemployer plan as described in paragraph 7#a71 the intent to amend the multiemployer plan to incorporate such composite plan7 at least #cj days prior to the effective date of such establishment or amendment4 7,b7 ,certification ,in the case of a composite plan incorporated as a component of a multiemployer plan as described in paragraph 7#a71 such notice shall include a certification by the plan actuary under section #cje7;b77#d7 that the effective date of the amendment occurs in a plan year for which the multiemployer plan is not in endangered or critical status for that plan year and any of the succeeding #e plan years4 7#f7 ,references to composite plan component ,as used in this part1 the term composite plan includes a composite plan component added to a defined benefit plan pursuant to paragraph 7#a74 7#g7 ,rule of construction ,paragraph 7#b77;,a7 shall not be construed as preventing the plan sponsor of a multiemployer plan from adopting an amendment pursuant to paragraph 7#a7 because some collective bargaining agreements are amended to cease any covered employer's obligation to contribute to the multiemployer plan before or after the plan amendment is effective4 ,paragraph 7#b77;,b7 shall not be construed as preventing the plan sponsor of a multiemployer plan from adopting an amendment pursuant to paragraph 7#a7 because some participants cease to have contributions made to the multiemployer plan on their behalf before or after the plan amendment is effective4 7c7 ,coordination with funding rules ,except as otherwise provided in this part1 sections #cjb1 #cjd1 and #cje shall not apply to a composite plan4 7d7 ,treatment of a composite plan ,for purposes of this ,act 7other than sections #cjb and #dbde71 a composite plan shall be treated as if it were a defined benefit plan unless a different treatment is provided for under applicable law4 #hjb4 ,funded ratios2 actuarial assumptions 7a7 ,certification of funded ratios 7#a7 ,in general ,not later than the one-hundred twentieth day of each plan year of a composite plan1 the plan actuary of the composite plan shall certify to the ,secretary1 the ,secretary of the ,treasury1 and the plan sponsor the plan's current funded ratio and projected funded ratio for the plan year4 7#b7 ,determination of current funded ratio and projected funded ratio ,for purposes of this section3 7,a7 ,current funded ratio ,the current funded ratio is the ratio 7expressed as a percentage7 of-- 7i7 the value of the plan's assets as of the first day of the plan year2 to 7ii7 the plan actuary's calculation of the present value of the plan liabilities as of the first day of the plan year4 7,b7 ,projected funded ratio ,the projected funded ratio is the funded ratio determined under subparagraph 7,a71 projected as of the first day of the fifteenth plan year following the plan year for which the determination is being made4 7#c7 ,consideration of contribution rate increases ,for purposes of projections under this subsection1 the plan actuary may anticipate contribution rate increases beyond the term of the current collective bargaining agreement and any agreed-to supplements1 if reasonable1 not to exceed #b4e percent per year1 compounded annually4 7b7 ,actuarial assumptions and methods ,for purposes of this part3 7#a7 ,in general ,all costs1 liabilities1 rates of interest1 and other factors under the plan shall be determined for a plan year on the basis of actuarial assumptions and methods-- 7,a7 each of which is reasonable 7taking into account the experience of the plan and reasonable expectations72 7,b7 which1 in combination1 offer the actuary's best estimate of anticipated experience under the plan2 and 7,c7 with respect to which any change from the actuarial assumptions and methods used in the previous plan year shall be certified by the plan actuary and the actuarial rationale for such change provided in the annual report required by section #ajc4 7#b7 ,fair market value of assets ,the value of the plan's assets shall be taken into account on the basis of their fair market value4 7#c7 ,determination of normal cost and plan liabilities ,a plan's normal cost and liabilities shall be based-- 7,a7 on the most recent actuarial valuation required under section #hja7;a77#e77;,a7 and the unit credit funding method2 and 7,b7 on rates of interest subject to section #cjd7;b77#f74 7#d7 ,time when certain contributions deemed made ,any contributions for a plan year made by an employer after the last day of such plan year1 but not later than #b months after such day1 shall be deemed to have been made on such last day4 ,for purposes of this paragraph1 such #b-month period may be extended to a total of not more than #abj days under regulations prescribed by the ,secretary of the ,treasury4 7#e7 ,additional actuarial assumptions ,except where otherwise provided in this part1 the provisions of section #cje7;b77#d77;,b7 shall apply to any determination or projection under this part4 #hjc4 ,realignment program 7a7 ,realignment program 7#a7 ,adoption ,in any case in which the plan actuary certifies under section #hjb7;a7 that the plan's projected funded ratio is below #abj percent for the plan year1 the plan sponsor shall adopt a realignment program under paragraph 7#b7 not later than #baj days after the due date of the certification required under such section #hjb7;a74 ,the plan sponsor shall adopt an updated realignment program for each succeeding plan year for which a certification described in the preceding sentence is made4 7#b7 ,content of realignment program 7,a7 ,in general ,a realignment program adopted under this paragraph is a written program which consists of reasonable measures1 including options or a range of options to be undertaken by the plan sponsor or proposed to the bargaining parties1 formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year4 7,b7 ,initial program elements ,reasonable measures under a realignment program described in subparagraph 7,a7 may include any of the following3 7i7 ,proposed contribution increases4 7ii7 ,a reduction in the rate of future benefit accruals1 so long as the resulting rate is not less than #a percent of the contributions on which benefits are based as of the start of the plan year 7or the equivalent standard accrual rate as described in section #cje7;f77#f774 7iii7 ,a modification or elimination of adjustable benefits of participants that are not in pay status before the date of the notice required under subsection 7b77#a74 7iv7 ,any other lawfully available measures not specifically described in this subparagraph or subparagraph 7,c7 or 7,d7 that the plan sponsor determines are reasonable4 7,c7 ,additional program elements ,if the plan sponsor has determined that all reasonable measures available under subparagraph 7,b7 will not enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year1 the realignment program may also include-- 7i7 a reduction of accrued benefits that are not in pay status by the date of the notice required under subsection 7b77#a72 or 7ii7 a reduction of any benefits of participants that are in pay status before the date of the notice required under subsection 7b77#a7 other than core benefits as defined in paragraph 7#d74 7,d7 ,additional elements ,in the case of a composite plan for which the plan sponsor has determined that all reasonable measures available under subparagraphs 7,b7 and 7,c7 will not enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year1 the realignment program may also include-- 7i7 a further reduction in the rate of future benefit accruals without regard to the limitation applicable under subparagraph 7,b77ii72 or 7ii7 a reduction of core benefits1 provided that such reductions shall be equitably distributed across the participant and beneficiary population1 taking into account factors1 with respect to participants and beneficiaries and their benefits1 that may include one or more of the factors listed in subclauses 7,i7 through 7,x7 of section #cje7;f77#i77;,d77vi71 to the extent necessary to enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year4 7#c7 ,adjustable benefit defined ,for purposes of this part1 the term adjustable benefit means-- 7,a7 benefits1 rights1 and features under the plan1 including post-retirement death benefits1 disability benefits not yet in pay status1 and similar benefits1 7,b7 any early retirement benefit or retirement-type subsidy 7within the meaning of section #bjd7;g77#b77;,a77 7including early reduction factors which are not provided on an actuarially equivalent basis7 and any benefit payment option 7other than the qualified joint and survivor annuity71 7,c7 benefit increases which were adopted 7or1 if later1 took effect7 less than #abj months before the first day of the first plan year in which such realignment program took effect1 7,d7 any one-time bonus payment or thirteenth check provision1 and 7,e7 benefits granted for period of service prior to participation in the plan4 7#d7 ,core benefit defined ,for purposes of this part1 the term core benefit means a participant's accrued benefit payable in the normal form of an annuity commencing at normal retirement age1 determined without regard to-- 7,a7 any early retirement benefits1 retirement-type subsidies1 or other benefits1 rights1 or features that may be associated with that benefit2 and 7,b7 any cost-of-living adjustments or benefit increases effective after the date of retirement4 7#e7 ,coordination with contribution increases 7,a7 ,in general ,a realignment program may provide that some or all of the benefit modifications described in the program will only take effect if the bargaining parties fail to agree to specified levels of increases in contributions to the plan1 effective as of specified dates4 7,b7 ,independent benefit modifications ,if a realignment program adopts any changes to the benefit formula that are independent of potential contribution increases1 such changes shall take effect not later than #ahj days after the first day of the first plan year that begins following the adoption of the realignment program4 7,c7 ,conditional benefit modifications ,if a realignment program adopts any changes to the benefit formula that take effect only if the bargaining parties fail to agree to contribution increases1 such changes shall take effect not later than the first day of the first plan year beginning after the third anniversary of the date of adoption of the realignment program4 7,d7 ,revocation of certain benefit modifications ,benefit modifications described in subparagraph 7,c7 may be revoked1 in whole or in part1 and retroactively or prospectively1 when contributions to the plan are increased1 as specified in the realignment program1 including any amendments thereto4 ,the preceding sentence shall not apply unless the contribution increases are to be effective not later than the fifth anniversary of the first day of the first plan year that begins after the adoption of the realignment program4 7b7 ,notice 7#a7 ,in general ,in any case in which it is certified under section #hjb7;a7 that the projected funded ratio is less than #abj percent1 the plan sponsor shall1 not later than #cj days after the date of the certification1 provide notification of the current and projected funded ratios to the participants and beneficiaries1 the bargaining parties1 the ,secretary of the ,treasury1 and the ,secretary4 ,such notice shall include-- 7,a7 an explanation that contribution rate increases or benefit reductions may be necessary2 7,b7 a description of the types of benefits that might be reduced2 and 7,c7 an estimate of the contribution increases and benefit reductions that may be necessary to achieve a projected funded ratio of #abj percent4 7#b7 ,notice of benefit modifications 7,a7 ,in ,general ,no modifications may be made that reduce the rate of future benefit accrual or that reduce core benefits or adjustable benefits unless notice of such reduction has been given at least #ahj days before the general effective date of such reduction for all participants and beneficiaries to-- 7i7 plan participants and beneficiaries2 7ii7 each employer who has an obligation to contribute to the composite plan2 and 7iii7 each employee organization which1 for purposes of collective bargaining1 represents plan participants employed by such employers4 7,b7 ,content of ,notice ,the notice under subparagraph 7,a7 shall contain-- 7i7 sufficient information to enable participants and beneficiaries to understand the effect of any reduction on their benefits1 including an illustration of any affected benefit or subsidy1 on an annual or monthly basis that a participant or beneficiary would otherwise have been eligible for as of the general effective date described in subparagraph 7,a72 and 7ii7 information as to the rights and remedies of plan participants and beneficiaries as well as how to contact the ,department of the ,treasury for further information and assistance1 where appropriate4 7,c7 ,form and ,manner ,any notice under subparagraph 7,a7-- 7i7 shall be provided in a form and manner prescribed in regulations of the ,secretary of the ,treasury2 and 7ii7 shall be written in a manner so as to be understood by the average plan participant4 7#c7 ,model notices ,the ,secretary of the ,treasury shall-- 7,a7 prescribe model notices that the plan sponsor of a composite plan may use to satisfy the notice requirements under this subsection2 and 7,b7 by regulation enumerate any details related to the elements listed in paragraph 7#a7 that any notice under this subsection must include4 7#d7 ,delivery method ,any notice under this part shall be provided in writing and may be provided in electronic form to the extent that the form is reasonably accessible to persons to whom the notice is provided4 #hjd4 ,limitation on increasing benefits 7a7 ,level of current funded ratios ,except as provided in subsections 7c71 7d71 and 7e71 no plan amendment increasing benefits or establishing new benefits under a composite plan may be adopted for a plan year unless-- 7#a7 the plan's current funded ratio is at least #aaj percent 7without regard to the benefit increase or new benefits72 7#b7 taking the benefit increase or new benefits into account1 the current funded ratio is at least #ajj percent and the projected funded ratio for the current plan year is at least #abj percent2 7#c7 in any case in which1 after taking the benefit increase or new benefits into account1 the current funded ratio is less than #adj percent and the projected funded ratio is less than #adj percent1 the benefit increase or new benefits are projected by the plan actuary to increase the present value of the plan's liabilities for the plan year by not more than #c percent2 and 7#d7 expected contributions for the current plan year are at least #abj percent of normal cost for the plan year1 determined using the unit credit funding method and treating the benefit increase or new benefits as in effect for the entire plan year4 7b7 ,additional requirements where core benefits reduced ,if a plan has been amended to reduce core benefits pursuant to a realignment program under section #hjc7;a77#b77;,d71 such plan may not be subsequently amended to increase core benefits unless the amendment-- 7#a7 increases the level of future benefit payments only2 and 7#b7 provides for an equitable distribution of benefit increases across the participant and beneficiary population1 taking into account the extent to which the benefits of participants were previously reduced pursuant to such realignment program4 7c7 ,exception ,to comply with applicable law ,subsection 7a7 shall not apply in connection with a plan amendment if the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf or to comply with other applicable law4 7d7 ,exception where maximum deductible limit applies ,subsection 7a7 shall not apply in connection with a plan amendment if and to the extent that contributions to the composite plan would not be deductible for the plan year under section #djd7;a77#a77;,e7 of the ,internal ,revenue ,code of #aihf if the plan amendment is not adopted4 7e7 ,exception for certain benefit modifications ,subsection 7a7 shall not apply in connection with a plan amendment under section #hjc7;a77#e77;,c71 regarding conditional benefit modifications4 7f7 ,treatment of plan amendments ,for purposes of this section-- 7#a7 if two or more plan amendments increasing benefits or establishing new benefits are adopted in a plan year1 such amendments shall be treated as a single amendment adopted on the last day of the plan year2 7#b7 all benefit increases and new benefits adopted in a single amendment are treated as a single benefit increase1 irrespective of whether the increases and new benefits take effect in more than one plan year2 and 7#c7 increases in contributions or decreases in plan liabilities which are scheduled to take effect in future plan years may be taken into account in connection with a plan amendment if they have been agreed to in writing or otherwise formalized by the date the plan amendment is adopted4 #hje4 ,composite plan restrictions to preserve legacy plan funding 7a7 ,treatment as a legacy plan 7#a7 ,in general ,for purposes of this part and parts #b and #c1 a defined benefit plan shall be treated as a legacy plan with respect to the composite plan under which employees who were eligible to accrue a benefit under the defined benefit plan become eligible to accrue a benefit under such composite plan4 7#b7 ,component plans ,in any case in which a defined benefit plan is amended to add a composite plan component pursuant to section #hja7;b71 paragraph 7#a7 shall be applied by substituting defined benefit component for defined benefit plan and composite plan component for composite plan4 7#c7 ,eligible to accrue a benefit ,for purposes of paragraph 7#a71 an employee is considered eligible to accrue a benefit under a composite plan as of the first day in which the employee completes an hour of service under a collective bargaining agreement that provides for contributions to and accruals under the composite plan in lieu of accruals under the defined benefit plan4 7#d7 ,collective bargaining agreement ,as used in this part1 the term collective bargaining agreement includes any agreement under which an employer has an obligation to contribute to a plan4 7#e7 ,other terms ,any term used in this part which is not defined in this part and which is also used in section #cje shall have the same meaning provided such term in such section4 7b7 ,restrictions on acceptance by composite plan of agreements and contributions 7#a7 ,in general ,the plan sponsor of a composite plan shall not accept or recognize a collective bargaining agreement 7or any modification to such agreement71 and no contributions may be accepted and no benefits may be accrued or otherwise earned under the agreement-- 7,a7 in any case in which the plan actuary of any defined benefit plan that would be treated as a legacy plan with respect to such composite plan has certified under section #cje7;b77#d7 that such defined benefit plan is or will be in endangered or critical status for the plan year in which such agreement would take effect or for any of the succeeding #e plan years2 and 7,b7 unless the agreement requires each employer who is a party to such agreement1 including employers whose employees are not participants in the legacy plan1 to provide contributions to the legacy plan with respect to such composite plan in a manner that satisfies the transition contribution requirements of subsection 7d74 7#b7 ,notice ,not later than #cj days after a determination by a plan sponsor of a composite plan that an agreement fails to satisfy the requirements described in paragraph 7#a71 the plan sponsor shall provide notification of such failure and the reasons for such determination-- 7,a7 to the parties to the agreement2 7,b7 to active participants of the composite plan who have ceased to accrue or otherwise earn benefits with respect to service with an employer pursuant to paragraph 7#a72 and 7,c7 to the ,secretary1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation4 7#c7 ,limitation on retroactive effect ,this subsection shall not apply to benefits accrued before the date on which notice is provided under paragraph 7#b74 7c7 ,restriction on accrual of benefits under a composite plan 7#a7 ,in general ,in any case in which an employer1 under a collective bargaining agreement entered into after the date of enactment of this part1 ceases to have an obligation to contribute to a multiemployer defined benefit plan1 no employees employed by the employer may accrue or otherwise earn benefits under any composite plan1 with respect to service with that employer1 for a #fj-month period beginning on the date on which the employer entered into such collective bargaining agreement4 7#b7 ,notice of cessation of obligation ,within #cj days of determining that an employer has ceased to have an obligation to contribute to a legacy plan with respect to employees employed by an employer that is or will be contributing to a composite plan with respect to service of such employees1 the plan sponsor of the legacy plan shall notify the plan sponsor of the composite plan of that cessation4 7#c7 ,notice of cessation of accruals ,not later than #cj days after determining that an employer has ceased to have an obligation to contribute to a legacy plan1 the plan sponsor of the composite plan shall notify the bargaining parties1 the active participants affected by the cessation of accruals1 the ,secretary1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation of the cessation of accruals1 the period during which such cessation is in effect1 and the reasons therefor4 7#d7 ,limitation on retroactive effect ,this subsection shall not apply to benefits accrued before the date on which notice is provided under paragraph 7#c74 7d7 ,transition contribution requirements 7#a7 ,in general ,a collective bargaining agreement satisfies the transition contribution requirements of this subsection if the agreement-- 7,a7 authorizes payment of contributions to a legacy plan at a rate1 or multiple rates1 as described in paragraph 7#b77;,b71 equal to or greater than the transition contribution rate established by the legacy plan under paragraph 7#b72 and 7,b7 does not provide for-- 7i7 a suspension of contributions to the legacy plan with respect to any period of service2 or 7ii7 any new direct or indirect exclusion of younger or newly hired employees of the employer from being taken into account in determining contributions owed to the legacy plan4 7#b7 ,transition contribution rate 7,a7 ,in general ,the transition contribution rate for a plan year is the contribution rate that1 as certified by the actuary of the legacy plan in accordance with the principles in section #cje7;b77#d77;,b71 is reasonably expected to be adequate-- 7i7 to fund the normal cost for the plan year2 7ii7 to amortize the plan's unfunded liabilities in level annual installments over #be years1 beginning with the plan year in which the transition contribution rate is first established2 and 7iii7 to amortize any subsequent changes in the legacy plan's unfunded liability due to experience gains or losses 7including investment gains or losses1 gains or losses due to contributions greater or less than the contributions made under the prior transition contribution rate1 and other actuarial gains or losses71 changes in actuarial assumptions1 changes to the legacy plan's benefits1 or changes in funding method over a period of #ae plan years beginning with the plan year following the plan year in which such change in unfunded liability is incurred1 unless otherwise prescribed4 ,the transition contribution rate for any plan year may not be less than the transition contribution rate for the plan year in which such rate is first established4 7,b7 ,multiple rates ,if different rates of contribution are payable to the legacy plan by different employers or for different classes of employees1 the certification by the actuary of the legacy plan shall specify a transition contribution rate for each such employer or class of employees4 7,c7 ,rate applicable to employer 7i7 ,in general ,except as provided by clause 7ii71 the transition contribution rate applicable to an employer for a plan year is the rate in effect for the plan year of the legacy plan that commences on or after #ahj days before the earlier of-- 7,i7 the effective date of the collective bargaining agreement pursuant to which the employer contributes to the legacy plan2 or 7,,ii7 #e years after the last plan year for which the transition contribution rate applicable to the employer was established or updated4 7ii7 ,exception ,the transition contribution rate applicable to an employer for the first plan year beginning on or after the commencement of the employer's obligation to contribute to the composite plan is the rate in effect for the plan year of the legacy plan that commences on or after #ahj days before such first plan year4 7,d7 ,effect of legacy plan financial circumstances ,if the plan actuary of the legacy plan has certified under section #cje that the plan is in endangered or critical status for a plan year1 the transition contribution rate for the following plan year is the rate determined with respect to the employer under the legacy plan's funding improvement or rehabilitation plan under section #cje1 if greater than the rate otherwise determined1 but in no event shall the transition contribution rate be greater than #ge percent of the sum of the contribution rates applicable to the legacy plan and the composite plan for the plan year4 ,notwithstanding the preceding sentence1 if the transition contribution rate in the prior year is more than #ge percent of the sum of the contribution rates applicable to the legacy plan and the composite plan for the prior plan year1 the transition contribution rate applicable to the legacy plan shall not be subject to the #ge-percent limitation1 but shall be neither increased nor reduced as a percentage of the sum of the contribution rates applicable to the legacy plan and the composite plan for the plan year4 7,e7 ,other actuarial assumptions and methods ,except as provided in subparagraph 7,a71 the determination of the transition contribution rate for a plan year shall be based on actuarial assumptions and methods consistent with the minimum funding determinations made under section #cjd 7or1 if applicable1 section #cje7 with respect to the legacy plan for the plan year4 7,f7 ,adjustments in rate ,the plan sponsor of a legacy plan from time to time may adjust the transition contribution rate or rates applicable to an employer under this paragraph by increasing some rates and decreasing others if the actuary certifies that such adjusted rates in combination will produce projected contribution income for the plan year beginning on or after the date of certification that is not less than would be produced by the transition contribution rates in effect at the time of the certification4 7,g7 ,notice of transition contribution rate ,the plan sponsor of a legacy plan shall provide notice to the parties to collective bargaining agreements pursuant to which contributions are made to the legacy plan of changes to the transition contribution rate requirements at least #cj days before the beginning of the plan year for which the rate is effective4 7,h7 ,notice to composite plan sponsor ,not later than #cj days after a determination by the plan sponsor of a legacy plan that a collective bargaining agreement provides for a rate of contributions that is below the transition contribution rate applicable to one or more employers that are parties to the collective bargaining agreement1 the plan sponsor of the legacy plan shall notify the plan sponsor of any composite plan under which employees of such employer would otherwise be eligible to accrue a benefit4 7#c7 ,correction procedures ,pursuant to standards prescribed by the ,secretary1 the plan sponsor of a composite plan shall adopt rules and procedures that give the parties to the collective bargaining agreement notice of the failure of such agreement to satisfy the transition contribution requirements of this subsection1 and a reasonable opportunity to correct such failure1 not to exceed #ahj days from the date of notice given under subsection 7b77#b74 7#d7 ,supplemental contributions ,a collective bargaining agreement may provide for supplemental contributions to the legacy plan for a plan year in excess of the transition contribution rate determined under paragraph 7#b71 regardless of whether the legacy plan is in endangered or critical status for such plan year4 7e7 ,nonapplication of composite plan restrictions 7#a7 ,in general ,the provisions of subsections 7a71 7b71 and 7c7 shall not apply with respect to a collective bargaining agreement1 to the extent the agreement1 or a predecessor agreement1 provides or provided for contributions to a defined benefit plan that is a legacy plan1 as of the first day of the first plan year following a plan year for which the plan actuary certifies that the plan is fully funded1 has been fully funded for at least three out of the immediately preceding #e plan years1 and is projected to remain fully funded for at least the following #d plan years4 7#b7 ,determination of fully funded ,a plan is fully funded for purposes of paragraph 7#a7 if1 as of the valuation date of the plan for a plan year1 the value of the plan's assets equals or exceeds the present value of the plan's liabilities1 determined in accordance with the rules prescribed by the ,pension ,benefit ,guaranty ,corporation under sections #dbai7;c77#a77;,d7 and #dbha for multiemployer plans terminating by mass withdrawal1 as in effect for the date of the determination1 except the plan's reasonable assumption regarding the starting date of benefits may be used4 7#c7 ,other applicable rules ,except as provided in paragraph 7#b71 actuarial determinations and projections under this section shall be based on the rules in section #hjb7;b74 #hjf4 ,mergers and asset transfers of composite plans 7a7 ,in general ,assets and liabilities of a composite plan may only be merged with1 or transferred to1 another plan if-- 7#a7 the other plan is a composite plan2 7#b7 the plan or plans resulting from the merger or transfer is a composite plan2 7#c7 no participant's accrued benefit or adjustable benefit is lower immediately after the transaction than it was immediately before the transaction2 and 7#d7 the value of the assets transferred in the case of a transfer reasonably reflects the value of the amounts contributed with respect to the participants whose benefits are being transferred1 adjusted for allocable distributions1 investment gains and losses1 and administrative expenses4 ,a plan which is not a composite plan may not merge with or transfer assets and liabilities to a composite plan4 7b7 ,legacy plan 7#a7 ,in general ,after a merger or transfer involving a composite plan1 the legacy plan with respect to an employer that is obligated to contribute to the resulting composite plan is the legacy plan that applied to that employer immediately before the merger or transfer4 7#b7 ,multiple ,legacy ,plans ,if an employer is obligated to contribute to more than one legacy plan with respect to employees eligible to accrue benefits under more than one composite plan and there is a merger or transfer of such legacy plans1 the transition contribution rate applicable to the legacy plan resulting from the merger or transfer with respect to that employer shall be determined in accordance with the provisions of section #hje7;d77#b77;,b74 4 7#b7 ,penalties 7,a7 ,civil enforcement of failure to comply with realignment program ,section #ejb7;a7 of such ,act 7#bi ,u4,s4,c4 #aacb7;a77 is amended-- 7i7 in paragraph 7#aj71 by striking or at the end2 7ii7 in paragraph 7#aa71 by striking the period at the end and inserting 2 or2 and 7iii7 by adding at the end the following3 7#ab7 in the case of a composite plan required to adopt a realignment program under section #hjc1 if the plan sponsor-- 7,a7 has not adopted a realignment program under that section by the deadline established in such section2 or 7,b7 fails to update or comply with the terms of the realignment program in accordance with the requirements of such section1 by the ,secretary1 by an employer that has an obligation to contribute with respect to the composite plan1 or by an employee organization that represents active participants in the composite plan1 for an order compelling the plan sponsor to adopt a realignment program1 or to update or comply with the terms of the realignment program1 in accordance with the requirements of such section and the realignment program4 4 7,b7 ,civil penalties ,section #ejb7;c7 of such ,act 7#bi ,u4,s4,c4 #aacb7;c771 as amended by this ,act1 is further amended-- 7i7 by moving paragraphs 7#h71 7#aj71 and 7#ab7 each #b ems to the left2 7ii7 by redesignating paragraphs 7#i7 through 7#ac7 as paragraphs 7#ab7 through 7#af71 respectively2 and 7iii7 by inserting after paragraph 7#h7 the following3 7#i7 ,the ,secretary may assess against any plan sponsor of a composite plan a civil penalty of not more than #b1adj per day for each violation by such sponsor-- 7,a7 of the requirement under section #hja7;a77#e77;,d7 to furnish an annual notification to each participant2 7,b7 of the requirement under section #hjb7;a7 on the plan actuary to certify the plan's current or projected funded ratio by the date specified in such subsection2 or 7,c7 of the requirement under section #hjc to adopt a realignment program by the deadline established in that section and to comply with its terms4 7#aj7 7,a7 ,the ,secretary may assess against any plan sponsor of a composite plan a civil penalty of not more than #ajj per day for each violation by such sponsor of the requirement under section #hjc7;b7 to provide notice as described in such section1 except that no penalty may be assessed in any case in which the plan sponsor exercised reasonable diligence to meet the requirements of such section and-- 7i7 the plan sponsor did not know that the violation existed2 or 7ii7 the plan sponsor provided such notice during the #cj-;day period beginning on the first date on which the plan sponsor knew1 or in exercising reasonable due diligence should have known1 that such violation existed4 7,b7 ,in any case in which the plan sponsor exercised reasonable diligence to meet the requirements of section #hjc7;b71 the ,secretary may waive part or all of such penalty to the extent that the payment of such penalty would be excessive or otherwise inequitable relative to the violation involved4 7#aa7 ,the ,secretary may assess against any plan sponsor of a composite plan a civil penalty of not more than #ajj per day for each violation by such sponsor of the notice requirements under sections #hja7;b77#e7 and #hje7;b77#b74 4 7#c7 ,authorities ,section #aja7;a7 of ,reorganization ,plan ,no4 #d of #aigh 7#bi ,u4,s4,c4 #ajja note7 is amended by striking ,parts #b and #c and inserting ,parts #b1 #c1 and #h4 7#d7 ,conforming amendment ,the table of contents in section #a of such ,act 7#bi ,u4,s4,c4 #ajja note7 is amended by inserting after the item relating to section #gcd the following3 ,part #h--;,composite ,plans and ,legacy ,plans ,sec4 #hja4 ,composite plan defined4 ,sec4 #hjb4 ,funded ratios2 actuarial assumptions4 ,sec4 #hjc4 ,realignment program4 ,sec4 #hjd4 ,limitation on increasing benefits4 ,sec4 #hje4 ,composite plan restrictions to preserve legacy plan funding4 ,sec4 #hjf4 ,mergers and asset transfers of composite plans4 4 7b7 ,amendment to the ,internal ,revenue ,code of #aihf 7#a7 ,in general ,subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,,iv ,composite ,plans and ,legacy ,plans ,sec4 #dcg4 ,composite plan defined4 ,sec4 #dch4 ,funded ratios2 actuarial assumptions4 ,sec4 #dci4 ,realignment program4 ,sec4 #ddj4 ,limitation on increasing benefits4 ,sec4 #ddj;,a4 ,composite plan restrictions to preserve legacy plan funding4 ,sec4 #ddj;,b4 ,mergers and asset transfers of composite plans4 #dcg4 ,composite plan defined 7a7 ,in general ,for purposes of this title1 the term composite plan means a pension plan-- 7#a7 which is a multiemployer plan that is neither a defined benefit plan nor a defined contribution plan1 7#b7 the terms of which provide that the plan is a composite plan for purposes of this title with respect to which not more than one multiemployer defined benefit plan is treated as a legacy plan within the meaning of section #ddj;,a1 unless there is more than one legacy plan following a merger of composite plans under section #ddj;,b1 7#c7 which provides systematically for the payment of benefits-- 7,a7 objectively calculated pursuant to a nondiscretionary formula specified in the plan document with respect to plan participants for life1 and 7,b7 in the form of life annuities1 except for benefits which under section #daa7;a77#aa7 may be immediately distributed without the consent of the participant1 7#d7 for which the anticipated employer contributions to the plan for the first plan year are at least #abj percent of the normal cost for the plan year1 7#e7 which requires-- 7,a7 an annual valuation of the liability of the plan as of a date within the plan year to which the valuation refers or within one month prior to the beginning of such year1 7,b7 an annual actuarial determination of the plan's current funded ratio and projected funded ratio under section #dch7;a71 7,c7 corrective action through a realignment program pursuant to section #dci whenever the plan's projected funded ratio is below #abj percent for the plan year1 and 7,d7 an annual notification to each participant describing benefits under the plan and explaining that such benefits may be subject to reduction under a realignment program pursuant to section #dci based on the plan's funded status in future plan years1 and 7#f7 the board of trustees of which includes at least one retiree or beneficiary in pay status during each plan year following the first plan year in which at least #e percent of the participants in the plan are retirees or beneficiaries in pay status4 7b7 ,transition from a multiemployer defined benefit plan 7#a7 ,in general ,the plan sponsor of a defined benefit plan that is a multiemployer plan may1 subject to paragraph 7#b71 amend the plan to incorporate the features of a composite plan as a component of the multiemployer plan separate from the defined benefit plan component1 except in the case of a defined benefit plan for which the plan actuary has certified under section #dcb7;b77#d7 that the plan is or will be in endangered or critical status for the plan year in which such amendment would become effective or in endangered or critical status for any of the succeeding #e plan years4 7#b7 ,requirements ,any amendment pursuant to paragraph 7#a7 to incorporate the features of a composite plan as a component of a multiemployer plan shall-- 7,a7 apply with respect to all collective bargaining agreements providing for contributions to the multiemployer plan on or after the effective date of the amendment1 7,b7 apply with respect to all participants in the multiemployer plan for whom contributions are made to the multiemployer plan on or after the effective date of the amendment1 7,c7 specify that the effective date of the amendment is-- 7i7 the first day of a specified plan year following the date of the adoption of the amendment1 except that the plan sponsor may alternatively provide for a separate effective date with respect to each collective bargaining agreement under which contributions to the multiemployer plan are required1 which shall occur on the first day of the first plan year beginning after the termination1 or if earlier1 the re-opening1 of each such agreement1 or such earlier date as the parties to the agreement and the plan sponsor of the multiemployer plan shall agree to1 and 7ii7 not later than the first day of the fifth plan year beginning on or after the date of the adoption of the amendment1 7,d7 specify that1 as of the amendment's effective date1 no further benefits shall accrue under the defined benefit component of the multiemployer plan1 and 7,e7 specify that1 as of the amendment's effective date1 the plan sponsor of the multiemployer plan shall be the plan sponsor of both the composite plan component and the defined benefit plan component of the plan4 7#c7 ,special rules ,if a multiemployer plan is amended pursuant to paragraph 7#a7-- 7,a7 the requirements of this title shall be applied to the composite plan component and the defined benefit plan component of the multiemployer plan as if each such component were maintained as a separate plan1 and 7,b7 the assets of the composite plan component and the defined benefit plan component of the plan shall be held in a single trust forming part of the plan under which the trust instrument expressly provides-- 7i7 for separate accounts 7and appropriate records7 to be maintained to reflect the interest which each of the plan components has in the trust1 including separate accounting for additions to the trust for the benefit of each plan component1 disbursements made from each plan component's account in the trust1 investment experience of the trust allocable to that account1 and administrative expenses 7whether direct expenses or shared expenses allocated proportionally71 and permits1 but does not require1 the pooling of some or all of the assets of the two plan components for investment purposes1 subject to the judgment of the plan fiduciaries1 and 7ii7 that the assets of each of the two plan components shall be held1 invested1 reinvested1 managed1 administered and distributed for the exclusive benefit of the participants and beneficiaries of each such plan component1 and in no event shall the assets of one of the plan components be available to pay benefits due under the other plan component4 7#d7 ,not a termination event ,notwithstanding section #djda;,a of the ,employee ,retirement ,income ,security ,act of #aigd1 an amendment pursuant to paragraph 7#a7 to incorporate the features of a composite plan as a component of a multiemployer plan does not constitute termination of the multiemployer plan4 7#e7 ,notice to the ,secretary of ,labor 7,a7 ,notice ,the plan sponsor of a composite plan shall provide notice to the ,secretary of ,labor of the intent to establish the composite plan 7or1 in the case of a composite plan incorporated as a component of a multiemployer plan as described in paragraph 7#a71 the intent to amend the multiemployer plan to incorporate such composite plan7 at least #cj days prior to the effective date of such establishment or amendment4 7,b7 ,certification ,in the case of a composite plan incorporated as a component of a multiemployer plan as described in paragraph 7#a71 such notice shall include a certification by the plan actuary under section #dcb7;b77#d7 that the effective date of the amendment occurs in a plan year for which the multiemployer plan is not in endangered or critical status for that plan year and any of the succeeding #e plan years4 7#f7 ,references to composite plan component ,as used in this part1 the term composite plan includes a composite plan component added to a defined benefit plan pursuant to paragraph 7#a74 7#g7 ,rule of construction ,paragraph 7#b77;,a7 shall not be construed as preventing the plan sponsor of a multiemployer plan from adopting an amendment pursuant to paragraph 7#a7 because some collective bargaining agreements are amended to cease any covered employer's obligation to contribute to the multiemployer plan before or after the plan amendment is effective4 ,paragraph 7#b77;,b7 shall not be construed as preventing the plan sponsor of a multiemployer plan from adopting an amendment pursuant to paragraph 7#a7 because some participants cease to have contributions made to the multiemployer plan on their behalf before or after the plan amendment is effective4 7c7 ,coordination with funding rules ,except as otherwise provided in this part1 sections #dab1 #dca1 and #dcb shall not apply to a composite plan4 7d7 ,treatment of a composite plan ,for purposes of this title 7other than sections #dab and #dah;,e71 a composite plan shall be treated as if it were a defined benefit plan unless a different treatment is provided for under applicable law4 #dch4 ,funded ratios2 actuarial assumptions 7a7 ,certification of funded ratios 7#a7 ,in general ,not later than the one-hundred twentieth day of each plan year of a composite plan1 the plan actuary of the composite plan shall certify to the ,secretary1 the ,secretary of ,labor1 and the plan sponsor the plan's current funded ratio and projected funded ratio for the plan year4 7#b7 ,determination of current funded ratio and projected funded ratio ,for purposes of this section-- 7,a7 ,current funded ratio ,the current funded ratio is the ratio 7expressed as a percentage7 of-- 7i7 the value of the plan's assets as of the first day of the plan year1 to 7ii7 the plan actuary's calculation of the present value of the plan liabilities as of the first day of the plan year4 7,b7 ,projected funded ratio ,the projected funded ratio is the funded ratio determined under subparagraph 7,a71 projected as of the first day of the fifteenth plan year following the plan year for which the determination is being made4 7#c7 ,consideration of contribution rate increases ,for purposes of projections under this subsection1 the plan actuary may anticipate contribution rate increases beyond the term of the current collective bargaining agreement and any agreed-to supplements1 if reasonable1 not to exceed #b4e percent per year1 compounded annually4 7b7 ,actuarial assumptions and methods ,for purposes of this part-- 7#a7 ,in general ,all costs1 liabilities1 rates of interest1 and other factors under the plan shall be determined for a plan year on the basis of actuarial assumptions and methods-- 7,a7 each of which is reasonable 7taking into account the experience of the plan and reasonable expectations71 7,b7 which1 in combination1 offer the actuary's best estimate of anticipated experience under the plan1 and 7,c7 with respect to which any change from the actuarial assumptions and methods used in the previous plan year shall be certified by the plan actuary and the actuarial rationale for such change provided in the annual report required by section #fjeh4 7#b7 ,fair market value of assets ,the value of the plan's assets shall be taken into account on the basis of their fair market value4 7#c7 ,determination of normal cost and plan liabilities ,a plan's normal cost and liabilities shall be based on-- 7,a7 the most recent actuarial valuation required under section #dcg7;a77#e77;,a7 and the unit credit funding method1 and 7,b7 rates of interest subject to section #dca7;b77#f74 7#d7 ,time when certain contributions deemed made ,any contributions for a plan year made by an employer after the last day of such plan year1 but not later than #b months after such day1 shall be deemed to have been made on such last day4 ,for purposes of this paragraph1 such #b-month period may be extended to a total of not more than #abj days under regulations prescribed by the ,secretary4 7#e7 ,additional actuarial assumptions ,except where otherwise provided in this part1 the provisions of section #dcb7;b77#d77;,b7 shall apply to any determination or projection under this part4 #dci4 ,realignment program 7a7 ,realignment program 7#a7 ,adoption ,in any case in which the plan actuary certifies under section #dch7;a7 that the plan's projected funded ratio is below #abj percent for the plan year1 the plan sponsor shall adopt a realignment program under paragraph 7#b7 not later than #baj days after the due date of the certification required under section #dch7;a74 ,the plan sponsor shall adopt an updated realignment program for each succeeding plan year for which a certification described in the preceding sentence is made4 7#b7 ,content of realignment program 7,a7 ,in general ,a realignment program adopted under this paragraph is a written program which consists of reasonable measures1 including options or a range of options to be undertaken by the plan sponsor or proposed to the bargaining parties1 formulated1 based on reasonably anticipated experience and reasonable actuarial assumptions1 to enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year4 7,b7 ,initial program elements ,reasonable measures under a realignment program described in subparagraph 7,a7 may include any of the following3 7i7 ,proposed contribution increases4 7ii7 ,a reduction in the rate of future benefit accruals1 so long as the resulting rate shall not be less than #a percent of the contributions on which benefits are based as of the start of the plan year 7or the equivalent standard accrual rate as described in section #dcb7;f77#f774 7iii7 ,a modification or elimination of adjustable benefits of participants that are not in pay status before the date of the notice required under subsection 7b77#a74 7iv7 ,any other legally available measures not specifically described in this subparagraph or subparagraph 7,c7 or 7,d7 that the plan sponsor determines are reasonable4 7,c7 ,additional program elements ,if the plan sponsor has determined that all reasonable measures available under subparagraph 7,b7 will not enable the plan to achieve a projected funded ratio of at least #abj percent the following plan year1 such realignment program may also include-- 7i7 a reduction of accrued benefits that are not in pay status by the date of the notice required under subsection 7b77#a71 or 7ii7 a reduction of any benefits of participants that are in pay status before the date of the notice required under subsection 7b77#a7 other than core benefits as defined in paragraph 7#d74 7,d7 ,additional reductions ,in the case of a composite plan for which the plan sponsor has determined that all reasonable measures available under subparagraphs 7,b7 and 7,c7 will not enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year1 the realignment program may also include-- 7i7 a further reduction in the rate of future benefit accruals without regard to the limitation applicable under subparagraph 7,b77ii71 or 7ii7 a reduction of core benefits1 provided that such reductions shall be equitably distributed across the participant and beneficiary population1 taking into account factors1 with respect to participants and beneficiaries and their benefits1 that may include one or more of the factors listed in subclauses 7,i7 through 7,x7 of section #dcb7;f77#i77;,d77vi71 to the extent necessary to enable the plan to achieve a projected funded ratio of at least #abj percent for the following plan year4 7#c7 ,adjustable benefit defined ,for purposes of this part1 the term adjustable benefit means-- 7,a7 benefits1 rights1 and features under the plan1 including post-retirement death benefits1 disability benefits not yet in pay status1 and similar benefits1 7,b7 any early retirement benefit or retirement-type subsidy 7within the meaning of section #daa7;d77#f77;,b77i77 7including early reduction factors which are not provided on an actuarially equivalent basis7 and any benefit payment option 7other than the qualified joint and survivor annuity71 7,c7 benefit increases which were adopted 7or1 if later1 took effect7 less than #abj months before the first day of the first plan year in which such realignment program took effect1 7,d7 any one-time bonus payment or thirteenth check provision1 and 7,e7 benefits granted for period of service prior to participation in the plan4 7#d7 ,core benefit defined ,for purposes of this part1 the term core benefit means a participant's accrued benefit payable in the normal form of an annuity commencing at normal retirement age1 determined without regard to-- 7,a7 any early retirement benefits1 retirement-type subsidies1 or other benefits1 rights1 or features that may be associated with that benefit1 and 7,b7 any cost-of-living adjustments or benefit increases effective after the date of retirement4 7#e7 ,coordination with contribution increases 7,a7 ,in general ,a realignment program may provide that some or all of the benefit modifications described in the program will only take effect if the bargaining parties fail to agree to specified levels of increases in contributions to the plan1 effective as of specified dates4 7,b7 ,independent benefit modifications ,if a realignment program adopts any changes to the benefit formula that are independent of potential contribution increases1 such changes shall take effect not later than #ahj days following the first day of the first plan year that begins following the adoption of the realignment program4 7,c7 ,conditional benefit modifications ,if a realignment program adopts any changes to the benefit formula that take effect only if the bargaining parties fail to agree to contribution increases1 such changes shall take effect not later than the first day of the first plan year beginning after the third anniversary of the date of adoption of the realignment program4 7,d7 ,revocation of certain benefit modifications ,benefit modifications described in paragraph 7#c7 may be revoked1 in whole or in part1 and retroactively or prospectively1 when contributions to the plan are increased1 as specified in the realignment program1 including any amendments thereto4 ,the preceding sentence shall not apply unless the contribution increases are to be effective not later than the fifth anniversary of the first day of the first plan year that begins after the adoption of the realignment program4 7b7 ,notice 7#a7 ,in general ,in any case in which it is certified under section #dch7;a7 that the projected funded ratio is less than #abj percent1 the plan sponsor shall1 not later than #cj days after the date of the certification1 provide notification of the current and projected funded ratios to the participants and beneficiaries1 the bargaining parties1 the ,secretary of ,labor1 and the ,secretary4 ,such notice shall include-- 7,a7 an explanation that contribution rate increases or benefit reductions may be necessary1 7,b7 a description of the types of benefits that might be reduced1 and 7,c7 an estimate of the contribution increases and benefit reductions that may be necessary to achieve a projected funded ratio of #abj percent4 7#b7 ,notice of benefit modifications 7,a7 ,in general ,no modifications may be made that reduce the rate of future benefit accrual or that reduce core benefits or adjustable benefits unless notice of such reduction has been given at least #ahj days before the general effective date of such reduction for all participants and beneficiaries to-- 7i7 plan participants and beneficiaries1 7ii7 each employer who has an obligation to contribute to the composite plan1 and 7iii7 each employee organization which1 for purposes of collective bargaining1 represents plan participants employed by such employers4 7,b7 ,content of ,notice ,the notice under subparagraph 7,a7 shall contain-- 7i7 sufficient information to enable participants and beneficiaries to understand the effect of any reduction on their benefits1 including an illustration of any affected benefit or subsidy1 on an annual or monthly basis that a participant or beneficiary would otherwise have been eligible for as of the general effective date described in subparagraph 7,a71 and 7ii7 information as to the rights and remedies of plan participants and beneficiaries as well as how to contact the ,department of the ,treasury for further information and assistance1 where appropriate4 7,c7 ,form and ,manner ,any notice under subparagraph 7,a7-- 7i7 shall be provided in a form and manner prescribed in regulations of the ,secretary1 and 7ii7 shall be written in a manner so as to be understood by the average plan participant4 7#c7 ,model notices ,the ,secretary shall-- 7,a7 prescribe model notices that the plan sponsor of a composite plan may use to satisfy the notice requirements under this subsection1 and 7,b7 by regulation enumerate any details related to the elements listed in paragraph 7#a7 that any notice under this subsection must include4 7#d7 ,delivery method ,any notice under this part shall be provided in writing and may be provided in electronic form to the extent that the form is reasonably accessible to persons to whom the notice is provided4 #ddj4 ,limitation on increasing benefits 7a7 ,level of current funded ratios ,except as provided in subsections 7c71 7d71 and 7e71 no plan amendment increasing benefits or establishing new benefits under a composite plan may be adopted for a plan year unless-- 7#a7 the plan's current funded ratio is at least #aaj percent 7without regard to the benefit increase or new benefits71 7#b7 taking the benefit increase or new benefits into account1 the current funded ratio is at least #ajj percent and the projected funded ratio for the current plan year is at least #abj percent1 7#c7 in any case in which1 after taking the benefit increase or new benefits into account1 the current funded ratio is less than #adj percent or the projected funded ratio is less than #adj percent1 the benefit increase or new benefits are projected by the plan actuary to increase the present value of the plan's liabilities for the plan year by not more than #c percent1 and 7#d7 expected contributions for the current plan year are at least #abj percent of normal cost for the plan year1 determined using the unit credit funding method and treating the benefit increase or new benefits as in effect for the entire plan year4 7b7 ,additional requirements where core benefits reduced ,if a plan has been amended to reduce core benefits pursuant to a realignment program under section #dci7;a77#b77;,d71 such plan may not be subsequently amended to increase core benefits unless the amendment-- 7#a7 increases the level of future benefit payments only1 and 7#b7 provides for an equitable distribution of benefit increases across the participant and beneficiary population1 taking into account the extent to which the benefits of participants were previously reduced pursuant to such realignment program4 7c7 ,exception ,to comply with applicable law ,subsection 7a7 shall not apply in connection with a plan amendment if the amendment is required as a condition of qualification under part ,i of subchapter ,d of chapter #a or to comply with other applicable law4 7d7 ,exception where maximum deductible limit applies ,subsection 7a7 shall not apply in connection with a plan amendment if and to the extent that contributions to the composite plan would not be deductible for the plan year under section #djd7;a77#a77;,e7 if the plan amendment is not adopted4 ,the ,secretary of the ,treasury shall issue regulations to implement this paragraph4 7e7 ,exception for certain benefit modifications ,subsection 7a7 shall not apply in connection with a plan amendment under section #dci7;a77#e77;,c71 regarding conditional benefit modifications4 7f7 ,treatment of plan amendments ,for purposes of this section-- 7#a7 if two or more plan amendments increasing benefits or establishing new benefits are adopted in a plan year1 such amendments shall be treated as a single amendment adopted on the last day of the plan year1 7#b7 all benefit increases and new benefits adopted in a single amendment are treated as a single benefit increase1 irrespective of whether the increases and new benefits take effect in more than one plan year1 and 7#c7 increases in contributions or decreases in plan liabilities which are scheduled to take effect in future plan years may be taken into account in connection with a plan amendment if they have been agreed to in writing or otherwise formalized by the date the plan amendment is adopted4 #ddj;,a4 ,composite plan restrictions to preserve legacy plan funding 7a7 ,treatment as a legacy plan 7#a7 ,in general ,for purposes of this subchapter1 a defined benefit plan shall be treated as a legacy plan with respect to the composite plan under which employees who were eligible to accrue a benefit under the defined benefit plan become eligible to accrue a benefit under such composite plan4 7#b7 ,component plans ,in any case in which a defined benefit plan is amended to add a composite plan component pursuant to section #dcg7;b71 paragraph 7#a7 shall be applied by substituting defined benefit component for defined benefit plan and composite plan component for composite plan4 7#c7 ,eligible to accrue a benefit ,for purposes of paragraph 7#a71 an employee is considered eligible to accrue a benefit under a composite plan as of the first day in which the employee completes an hour of service under a collective bargaining agreement that provides for contributions to and accruals under the composite plan in lieu of accruals under the defined benefit plan4 7#d7 ,collective bargaining agreement ,as used in this part1 the term collective bargaining agreement includes any agreement under which an employer has an obligation to contribute to a plan4 7#e7 ,other terms ,any term used in this part which is not defined in this part and which is also used in section #dcb shall have the same meaning provided such term in such section4 7b7 ,restrictions on acceptance by composite plan of agreements and contributions 7#a7 ,in general ,the plan sponsor of a composite plan shall not accept or recognize a collective bargaining agreement 7or any modification to such agreement71 and no contributions may be accepted and no benefits may be accrued or otherwise earned under the agreement-- 7,a7 in any case in which the plan actuary of any defined benefit plan that would be treated as a legacy plan with respect to such composite plan has certified under section #dcb7;b77#d7 that such defined benefit plan is or will be in endangered or critical status for the plan year in which such agreement would take effect or for any of the succeeding #e plan years1 and 7,b7 unless the agreement requires each employer who is a party to such agreement1 including employers whose employees are not participants in the legacy plan1 to provide contributions to the legacy plan with respect to such composite plan in a manner that satisfies the transition contribution requirements of subsection 7d74 7#b7 ,notice ,not later than #cj days after a determination by a plan sponsor of a composite plan that an agreement fails to satisfy the requirements described in paragraph 7#a71 the plan sponsor shall provide notification of such failure and the reasons for such determination to-- 7,a7 the parties to the agreement1 7,b7 active participants of the composite plan who have ceased to accrue or otherwise earn benefits with respect to service with an employer pursuant to paragraph 7#a71 and 7,c7 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation4 7#c7 ,limitation on retroactive effect ,this subsection shall not apply to benefits accrued before the date on which notice is provided under paragraph 7#b74 7c7 ,restriction on accrual of benefits under a composite plan 7#a7 ,in general ,in any case in which an employer1 under a collective bargaining agreement entered into after the date of enactment of the ,chris ,allen ,multiemployer ,pension ,recapitalization and ,reform ,act of #bjbj1 ceases to have an obligation to contribute to a multiemployer defined benefit plan1 no employees employed by the employer may accrue or otherwise earn benefits under any composite plan1 with respect to service with that employer1 for a #fj-month period beginning on the date on which the employer entered into such collective bargaining agreement4 7#b7 ,notice of cessation of obligation ,within #cj days of determining that an employer has ceased to have an obligation to contribute to a legacy plan with respect to employees employed by an employer that is or will be contributing to a composite plan with respect to service of such employees1 the plan sponsor of the legacy plan shall notify the plan sponsor of the composite plan of that cessation4 7#c7 ,notice of cessation of accruals ,not later than #cj days after determining that an employer has ceased to have an obligation to contribute to a legacy plan1 the plan sponsor of the composite plan shall notify the bargaining parties1 the active participants affected by the cessation of accruals1 the ,secretary1 the ,secretary of ,labor1 and the ,pension ,benefit ,guaranty ,corporation of the cessation of accruals1 the period during which such cessation is in effect1 and the reasons therefor4 7#d7 ,limitation on retroactive effect ,this subsection shall not apply to benefits accrued before the date on which notice is provided under paragraph 7#c74 7d7 ,transition contribution requirements 7#a7 ,in general ,a collective bargaining agreement satisfies the transition contribution requirements of this subsection if the agreement-- 7,a7 authorizes for payment of contributions to a legacy plan at a rate1 or multiple rates1 as described in paragraph 7#b77;,b71 equal to or greater than the transition contribution rate established under paragraph 7#b71 and 7,b7 does not provide for-- 7i7 a suspension of contributions to the legacy plan with respect to any period of service1 or 7ii7 any new direct or indirect exclusion of younger or newly hired employees of the employer from being taken into account in determining contributions owed to the legacy plan4 7#b7 ,transition contribution rate 7,a7 ,in general ,the transition contribution rate for a plan year is the contribution rate that1 as certified by the actuary of the legacy plan in accordance with the principles in section #dcb7;b77#d77;,b71 is reasonably expected to be adequate-- 7i7 to fund the normal cost for the plan year1 7ii7 to amortize the plan's unfunded liabilities in level annual installments over #be years1 beginning with the plan year in which the transition contribution rate is first established1 and 7iii7 to amortize any subsequent changes in the legacy plan's unfunded liability due to experience gains or losses 7including investment gains or losses1 gains or losses due to contributions greater or less than the contributions made under the prior transition contribution rate1 and other actuarial gains or losses71 changes in actuarial assumptions1 changes to the legacy plan's benefits1 or changes in funding method over a period of #ae plan years beginning with the plan year following the plan year in which such change in unfunded liability is incurred1 unless otherwise prescribed4 ,the transition contribution rate for any plan year may not be less than the transition contribution rate for the plan year in which such rate is first established4 7,b7 ,multiple rates ,if different rates of contribution are payable to the legacy plan by different employers or for different classes of employees1 the certification by the actuary of the legacy plan shall specify a transition contribution rate for each such employer or class of employees4 7,c7 ,rate applicable to employer 7i7 ,in general ,except as provided by clause 7ii71 the transition contribution rate applicable to an employer for a plan year is the rate in effect for the plan year of the legacy plan that commences on or after #ahj days before the earlier of-- 7,i7 the effective date of the collective bargaining agreement pursuant to which the employer contributes to the legacy plan1 or 7,,ii7 #e years after the last plan year for which the transition contribution rate applicable to the employer was established or updated4 7ii7 ,exception ,the transition contribution rate applicable to an employer for the first plan year beginning on or after the commencement of the employer's obligation to contribute to the composite plan is the rate in effect for the plan year of the legacy plan that commences on or after #ahj days before such first plan year4 7,d7 ,effect of legacy plan financial circumstances ,if the plan actuary of the legacy plan has certified under section #dcb that the plan is in endangered or critical status for a plan year1 the transition contribution rate for the following plan year is the rate determined with respect to the employer under the legacy plan's funding improvement or rehabilitation plan under section #dcb1 if greater than the rate otherwise determined1 but in no event shall the transition contribution rate be greater than #ge percent of the sum of the contribution rates applicable to the legacy plan and the composite plan for the plan year4 ,notwithstanding the preceding sentence1 if the transition contribution rate in the prior year is more than #ge percent of the sum of the contribution rates applicable to the legacy plan and the composite plan for the prior plan year1 the transition contribution rate applicable to the legacy plan shall not be subject to the #ge-percent limitation1 but shall be neither increased nor reduced as a percentage of the sum of the contribution rates applicable to the legacy plan and the composite plan for the plan year4 7,e7 ,other actuarial assumptions and methods ,except as provided in subparagraph 7,a71 the determination of the transition contribution rate for a plan year shall be based on actuarial assumptions and methods consistent with the minimum funding determinations made under section #dca 7or1 if applicable1 section #dcb7 with respect to the legacy plan for the plan year4 7,f7 ,adjustments in rate ,the plan sponsor of a legacy plan from time to time may adjust the transition contribution rate or rates applicable to an employer under this paragraph by increasing some rates and decreasing others if the actuary certifies that such adjusted rates in combination will produce projected contribution income for the plan year beginning on or after the date of certification that is not less than would be produced by the transition contribution rates in effect at the time of the certification4 7,g7 ,notice of transition contribution rate ,the plan sponsor of a legacy plan shall provide notice to the parties to collective bargaining agreements pursuant to which contributions are made to the legacy plan of changes to the transition contribution rate requirements at least #cj days before the beginning of the plan year for which the rate is effective4 7,h7 ,notice to composite plan sponsor ,not later than #cj days after a determination by the plan sponsor of a legacy plan that a collective bargaining agreement provides for a rate of contributions that is below the transition contribution rate applicable to one or more employers that are parties to the collective bargaining agreement1 the plan sponsor of the legacy plan shall notify the plan sponsor of any composite plan under which employees of such employer would otherwise be eligible to accrue a benefit4 7#c7 ,correction procedures ,pursuant to standards prescribed by the ,secretary of ,labor1 the plan sponsor of a composite plan shall adopt rules and procedures that give the parties to the collective bargaining agreement notice of the failure of such agreement to satisfy the transition contribution requirements of this subsection1 and a reasonable opportunity to correct such failure1 not to exceed #ahj days from the date of notice given under subsection 7b77#b74 7#d7 ,supplemental contributions ,a collective bargaining agreement may provide for supplemental contributions to the legacy plan for a plan year in excess of the transition contribution rate determined under paragraph 7#b71 regardless of whether the legacy plan is in endangered or critical status for such plan year4 7e7 ,nonapplication of composite plan restrictions 7#a7 ,in general ,the provisions of subsections 7a71 7b71 and 7c7 shall not apply with respect to a collective bargaining agreement1 to the extent the agreement1 or a predecessor agreement1 provides or provided for contributions to a defined benefit plan that is a legacy plan1 as of the first day of the first plan year following a plan year for which the plan actuary certifies that the plan is fully funded1 has been fully funded for at least three out of the immediately preceding #e plan years1 and is projected to remain fully funded for at least the following #d plan years4 7#b7 ,determination of fully funded ,a plan is fully funded for purposes of paragraph 7#a7 if1 as of the valuation date of the plan for a plan year1 the value of the plan's assets equals or exceeds the present value of the plan's liabilities1 determined in accordance with the rules prescribed by the ,pension ,benefit ,guaranty ,corporation under sections #dbai7;c77#a77;,d7 and #dbha of ,employee ,retirement ,income and ,security ,act for multiemployer plans terminating by mass withdrawal1 as in effect for the date of the determination1 except the plan's reasonable assumption regarding the starting date of benefits may be used4 7#c7 ,other applicable rules ,except as provided in paragraph 7#b71 actuarial determinations and projections under this section shall be based on the rules in section #dch7;b74 #ddj;,b4 ,mergers and asset transfers of composite plans 7a7 ,in general ,assets and liabilities of a composite plan may only be merged with1 or transferred to1 another plan if-- 7#a7 the other plan is a composite plan1 7#b7 the plan or plans resulting from the merger or transfer is a composite plan1 7#c7 no participant's accrued benefit or adjustable benefit is lower immediately after the transaction than it was immediately before the transaction1 and 7#d7 the value of the assets transferred in the case of a transfer reasonably reflects the value of the amounts contributed with respect to the participants whose benefits are being transferred1 adjusted for allocable distributions1 investment gains and losses1 and administrative expenses4 ,a plan which is not a composite plan may not merge with or transfer assets and liabilities to a composite plan4 7b7 ,legacy plan 7#a7 ,in general ,after a merger or transfer involving a composite plan1 the legacy plan with respect to an employer that is obligated to contribute to the resulting composite plan is the legacy plan that applied to that employer immediately before the merger or transfer4 7#b7 ,multiple ,legacy ,plans ,if an employer is obligated to contribute to more than one legacy plan with respect to employees eligible to accrue benefits under more than one composite plan and there is a merger or transfer of such legacy plans1 the transition contribution rate applicable to the legacy plan resulting from the merger or transfer with respect to that employer shall be determined in accordance with the provisions of section #ddj;,a7d77#b77;,b74 4 7#b7 ,clerical amendment ,the table of parts for subchapter ,d of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,part ,,iv--,composite ,plans and ,legacy ,plans 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after the date of the enactment of this ,act4 #ejb4 ,application of certain requirements to composite plans 7a7 ,amendments to the ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,treatment for purposes of funding notices ,section #aja7;f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba7;f771 as amended by this ,act1 is further amended-- 7,a7 in paragraph 7#a7 by striking title ,,iv applies and inserting title ,,iv applies or which is a composite plan2 and 7,b7 by adding at the end the following3 7#e7 ,application to composite plans ,the provisions of this subsection shall apply to a composite plan only to the extent prescribed by the ,secretary in regulations that take into account the differences between a composite plan and a defined benefit plan that is a multiemployer plan4 4 7#b7 ,treatment for purposes of annual report ,section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7 is amended-- 7,a7 in subsection 7d7 by adding at the end the following sentence3 ,the provisions of this subsection shall apply to a composite plan only to the extent prescribed by the ,secretary in regulations that take into account the differences between a composite plan and a defined benefit plan that is a multiemployer plan42 7,b7 in subsection 7f7 by adding at the end the following3 7#c7 ,additional information for composite plans ,with respect to any composite plan-- 7,a7 the provisions of paragraph 7#a77;,a7 shall apply by substituting current funded ratio and projected funded ratio 7as such terms are defined in section #hjb7;a77#b77 for funded percentage each place it appears2 and 7,b7 the provisions of paragraph 7#b7 shall apply only to the extent prescribed by the ,secretary in regulations that take into account the differences between a composite plan and a defined benefit plan that is a multiemployer plan4 2 and 7,c7 by adding at the end the following3 7h7 ,composite plans ,a multiemployer plan that incorporates the features of a composite plan as provided in section #hja7;b7 shall be treated as a single plan for purposes of the report required by this section1 except that separate financial statements and actuarial statements shall be provided under paragraphs 7#c7 and 7#d7 of subsection 7a7 for the defined benefit plan component and for the composite plan component of the multiemployer plan4 4 7#c7 ,treatment for purposes of pension benefit statements ,section #aje7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is amended by adding at the end the following3 7#d7 ,composite plans ,for purposes of this subsection1 a composite plan shall be treated as a defined benefit plan to the extent prescribed by the ,secretary in regulations that take into account the differences between a composite plan and a defined benefit plan that is a multiemployer plan4 4 7b7 ,amendments to the ,internal ,revenue ,code of #aihf ,section #fjeh of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following3 7f7 ,composite plans ,a multiemployer plan that incorporates the features of a composite plan as provided in section #dcg7;b7 shall be treated as a single plan for purposes of the return required by this section1 except that separate financial statements shall be provided for the defined benefit plan component and for the composite plan component of the multiemployer plan4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after the date of the enactment of this ,act4 #ejc4 ,treatment of composite plans under title ,,iv 7a7 ,definition ,section #djja7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acja7;a77 is amended by striking the period at the end of paragraph 7#ba7 and inserting a semicolon and by adding at the end the following3 7#bb7 ,composite plan ,the term composite plan has the meaning set forth in section #hja4 4 7b7 ,composite plans disregarded for calculating premiums ,section #djjf7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77 is amended by adding at the end the following3 7#i7 ,the composite plan component of a multiemployer plan shall be disregarded in determining the premiums due under this section from the multiemployer plan4 4 7c7 ,composite plans not covered ,section #djba7;b77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acba7;b77#a77 is amended by striking ,act and inserting ,act1 or a composite plan1 as defined in paragraph 7#dc7 of section #c of this ,act4 7d7 ,no withdrawal liability ,section #dbja of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha7 is amended by adding at the end the following3 7c7 ,contributions by an employer to the composite plan component of a multiemployer plan shall not be taken into account for any purpose under this title4 4 7e7 ,no withdrawal liability for certain plans ,section #dbja of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha7 is further amended by adding at the end the following3 7d7 ,contributions by an employer to a multiemployer plan described in the except clause of section #c7ce7 of this ,act pursuant to a collective bargaining agreement that specifically designates that such contributions shall be allocated to the separate defined contribution accounts of participants under the plan shall not be taken into account with respect to the defined benefit portion of the plan for any purpose under this title 7including the determination of the employer's highest contribution rate under section #dbai71 even if1 under the terms of the plan1 participants have the option to transfer assets in their separate defined contribution accounts to the defined benefit portion of the plan in return for service credit under the defined benefit portion1 at rates established by the plan sponsor4 7e7 ,a legacy plan created under section #hje shall be deemed to have no unfunded vested benefits for purposes of this part1 for each plan year following a period of #e consecutive plan years for which-- 7#a7 the plan was fully funded within the meaning of section #hje for at least #c of the plan years during that period1 ending with a plan year for which the plan is fully funded2 7#b7 the plan had no unfunded vested benefits for at least #c of the plan years during that period1 ending with a plan year for which the plan is fully funded2 and 7#c7 the plan is projected to be fully funded and to have no unfunded vested benefits for the following four plan years4 4 7f7 ,no withdrawal liability for employers contributing to certain fully funded legacy plans ,section #dbaa of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #achb7 is amended by adding at the end the following3 7g7 ,legacy plans ,no amount of unfunded vested benefits shall be allocated to an employer that has an obligation to contribute to a legacy plan described in subsection 7e7 of section #dbja for each plan year for which such subsection applies4 4 7g7 ,no obligation ,to contribute ,section #dbab of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acib7 is amended by adding at the end the following3 7d7 ,no obligation ,to contribute ,an employer shall not be treated as having an obligation to contribute to a multiemployer defined benefit plan within the meaning of subsection 7a7 solely because-- 7#a7 in the case of a multiemployer plan that includes a composite plan component1 the employer has an obligation to contribute to the composite plan component of the plan2 7#b7 the employer has an obligation to contribute to a composite plan that is maintained pursuant to one or more collective bargaining agreements under which the multiemployer defined benefit plan is or previously was maintained2 or 7#c7 the employer contributes or has contributed under section #hje7;d7 to a legacy plan associated with a composite plan pursuant to a collective bargaining agreement but employees of that employer were not eligible to accrue benefits under the legacy plan with respect to service with that employer4 4 7h7 ,no inference ,nothing in the amendment made by subsection 7e7 shall be construed to create an inference with respect to the treatment under title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd1 as in effect before such amendment1 of contributions by an employer to a multiemployer plan described in the except clause of section #c7ce7 of such ,act that are made before the effective date of subsection 7e7 specified in subsection 7h77#b74 7i7 ,effective date 7#a7 ,in general ,except as provided in subparagraph 7#b71 the amendments made by this section shall apply to plan years beginning after the date of the enactment of this ,act4 7#b7 ,special rule for section #dad7k7 multiemployer plans ,the amendment made by subsection 7e7 shall apply only to required contributions payable for plan years beginning after the date of the enactment of this ,act4 #ejd4 ,conforming changes 7a7 ,definitions 7#a7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended-- 7,a7 in paragraph 7#ce71 by inserting or a composite plan after other than an individual account plan2 and 7,b7 by adding at the end the following3 7#dc7 ,the term composite plan has the meaning given the term in section #hja7;a74 4 7#b7 ,amendment to ,internal ,revenue ,code of #aihf ,section #dad7;j7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 other than a composite plan 7as defined in section #dcg7;a771 after any plan4 7b7 ,special funding rule for certain legacy plans 7#a7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,section #cjd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhd7;b771 as amended by this ,act1 is amended by adding at the end the following3 7#aj7 ,special funding rule for certain legacy plans ,in the case of a multiemployer defined benefit plan that has adopted an amendment under section #hja7;b71 in accordance with which no further benefits shall accrue under the multiemployer defined benefit plan1 the plan sponsor may combine the outstanding balance of all charge and credit bases and amortize that combined base in level annual installments 7until fully amortized7 over a period of #be plan years beginning with the plan year following the date all benefit accruals ceased1 but only if the plan is not in endangered or critical status under section #cje4 4 7#b7 ,amendment to ,internal ,revenue ,code of #aihf ,section #dca7;b7 of the ,internal ,revenue ,code of #aihf1 as amended by this ,act1 is amended by adding at the end the following3 7#aj7 ,special funding rule for certain legacy plans ,in the case of a multiemployer defined benefit plan that has adopted an amendment under section #dcg7;b71 in accordance with which no further benefits shall accrue under the multiemployer defined benefit plan1 the plan sponsor may combine the outstanding balance of all charge and credit bases and amortize that combined base in level annual installments 7until fully amortized7 over a period of #be plan years beginning with the plan year following the date on which all benefit accruals ceased1 but only if the plan is not in endangered or critical status under section #dcb4 4 7c7 ,benefits after merger1 consolidation1 or transfer of assets 7#a7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,section #bjh of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajeh7 is amended-- 7,a7 by striking so much of the first sentence as precedes may not merge and inserting the following3 7#a7 ,in general ,except as provided in paragraph 7#b71 a pension plan may not merge1 and 2 and 7,b7 by striking the second sentence and adding at the end the following3 7#b7 ,special requirements for multiemployer plans ,paragraph 7#a7 shall not apply to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title ,,iv of this ,act applies or a composite plan4 4 7#b7 ,amendments to ,internal ,revenue ,code of #aihf 7,a7 ,qualification requirement ,section #dja7;a77#ab7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 by striking 7#ab7 ,a trust and inserting the following3 7#ab7 ,benefits after merger1 consolidation1 or transfer of assets 7,a7 ,in general ,except as provided in subparagraph 7,b71 a trust 2 7ii7 by striking the second sentence2 and 7iii7 by adding at the end the following3 7,b7 ,special requirements for multiemployer plans ,subparagraph 7,a7 shall not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd applies or a composite plan4 4 7,b7 ,additional qualification requirement ,paragraph 7#a7 of section #dad7l7 of such ,code is amended-- 7i7 by striking 7#a7 ,in general and all that follows through shall not constitute and inserting the following3 7#a7 ,benefit protections3 merger1 consolidation1 transfer 7,a7 ,in general ,except as provided in subparagraph 7,b71 a trust which forms a part of a plan shall not constitute 2 7ii7 by striking the second sentence2 and 7iii7 by adding at the end the following3 7,b7 ,special requirements for multiemployer plans ,subparagraph 7,a7 does not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd applies or a composite plan4 4 7d7 ,requirements for status as a qualified plan 7#a7 ,requirement that actuarial assumptions be specified ,section #dja7;a77#be7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7in the case of a composite plan1 benefits objectively calculated pursuant to a formula7 after definitely determinable benefits4 7#b7 ,missing participants in terminating composite plan ,section #dja7;a77#cd7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 a trust and inserting or a composite plan1 a trust4 7e7 ,deduction for contributions to a qualified plan ,section #djd7;a77#a7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraph 7,e7 as subparagraph 7,f7 and by inserting after subparagraph 7,d7 the following3 7,e7 ,composite plans 7i7 ,in general ,in the case of a composite plan1 subparagraph 7,d7 shall not apply and the maximum amount deductible for a plan year shall be the excess 7if any7 of-- 7,i7 #adj percent of the greater of-- 7aa7 the current liability of the plan determined in accordance with the principles of section #dca7;c77#f77;,d71 or 7bb7 the present value of plan liabilities as determined under section #dch1 over 7,,ii7 the fair market value of the plan's assets1 projected to the end of the plan year4 7ii7 ,special rules for predecessor multiemployer plan to composite plan 7,i7 ,in general ,except as provided in subclause 7,,ii71 if an employer contributes to a composite plan with respect to its employees1 contributions by that employer to a legacy plan with respect to some or all of the same group of employees shall be deductible under sections #afb and this section1 subject to the limits in subparagraph 7,d74 7,,ii7 ,transition contribution ,the full amount of a contribution to satisfy the transition contribution requirement 7as defined in section #ddj;,a7d77 and allocated to the legacy defined benefit plan for the plan year shall be deductible for the employer's taxable year ending with or within the plan year4 4 7f7 ,minimum vesting standards 7#a7 ,years of service under composite plans 7,a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #bjc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7 is amended by inserting after subsection 7f7 the following3 7g7 ,special rules for computing years of service under composite plans 7#a7 ,in general ,in determining a qualified employee's years of service under a composite plan for purposes of this section1 the employee's years of service under a legacy plan shall be treated as years of service earned under the composite plan4 ,for purposes of such determination1 a composite plan shall not be treated as a defined benefit plan pursuant to section #hja7;d74 7#b7 ,qualified employee ,for purposes of this subsection1 an employee is a qualified employee if the employee first completes an hour of service under the composite plan 7determined without regard to the provisions of this subsection7 within the #ab-month period immediately preceding or the #bd-month period immediately following the date the employee ceased to accrue benefits under the legacy plan4 7#c7 ,certification of years of service ,for purposes of paragraph 7#a71 the plan sponsor of the composite plan shall rely on a written certification by the plan sponsor of the legacy plan of the years of service the qualified employee completed under the defined benefit plan as of the date the employee satisfies the requirements of paragraph 7#b71 disregarding any years of service that had been forfeited under the rules of the defined benefit plan before that date unless contrary to service records provided by the participant4 ,in the case of a conflict1 the plan sponsor shall evaluate the evidence and make a reasonable factual determination4 7h7 ,special rules for computing years of service under legacy plans 7#a7 ,in general ,in determining a qualified employee's years of service under a legacy plan for purposes of this section1 and in addition to any service under applicable regulations1 the employee's years of service under a composite plan shall be treated as years of service earned under the legacy plan4 ,for purposes of such determination1 a composite plan shall not be treated as a defined benefit plan pursuant to section #hja7;d74 7#b7 ,qualified employee ,for purposes of this subsection1 an employee is a qualified employee if the employee first completes an hour of service under the composite plan 7determined without regard to the provisions of this subsection7 within the #ab-month period immediately preceding or the #bd-month period immediately following the date the employee ceased to accrue benefits under the legacy plan4 7#c7 ,certification of years of service ,for purposes of paragraph 7#a71 the plan sponsor of the legacy plan shall rely on a written certification by the plan sponsor of the composite plan of the years of service the qualified employee completed under the composite plan after the employee satisfies the requirements of paragraph 7#b71 disregarding any years of service that has been forfeited under the rules of the composite plan unless contrary to service records provided by the participant4 ,in the case of a conflict1 the plan sponsor shall evaluate the evidence and make a reasonable factual determination4 4 7,b7 ,internal ,revenue ,code of #aihf ,section #daa7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#ad7 ,special rules for determining years of service under composite plans 7,a7 ,in general ,in determining a qualified employee's years of service under a composite plan for purposes of this subsection1 the employee's years of service under a legacy plan shall be treated as years of service earned under the composite plan4 ,for purposes of such determination1 a composite plan shall not be treated as a defined benefit plan pursuant to section #dcg7;d74 7,b7 ,qualified employee ,for purposes of this paragraph1 an employee is a qualified employee if the employee first completes an hour of service under the composite plan 7determined without regard to the provisions of this paragraph7 within the #ab-month period immediately preceding or the #bd-month period immediately following the date the employee ceased to accrue benefits under the legacy plan4 7,c7 ,certification of years of service ,for purposes of subparagraph 7,a71 the plan sponsor of the composite plan shall rely on a written certification by the plan sponsor of the legacy plan of the years of service the qualified employee completed under the legacy plan as of the date the employee satisfies the requirements of subparagraph 7,b71 disregarding any years of service that had been forfeited under the rules of the defined benefit plan before that date unless contrary to service records provided by the participant4 ,in the case of a conflict1 the plan sponsor shall evaluate the evidence and make a reasonable factual determination4 7#ae7 ,special rules for computing years of service under legacy plans 7,a7 ,in general ,in determining a qualified employee's years of service under a legacy plan for purposes of this section1 and in addition to any service under applicable regulations1 the employee's years of service under a composite plan shall be treated as years of service earned under the legacy plan4 ,for purposes of such determination1 a composite plan shall not be treated as a defined benefit plan pursuant to section #dcg7;d74 7,b7 ,qualified employee ,for purposes of this paragraph1 an employee is a qualified employee if the employee first completes an hour of service under the composite plan 7determined without regard to the provisions of this paragraph7 within the #ab-month period immediately preceding or the #bd-month period immediately following the date the employee ceased to accrue benefits under the legacy plan4 7,c7 ,certification of years of service ,for purposes of subparagraph 7,a71 the plan sponsor of the legacy plan shall rely on a written certification by the plan sponsor of the composite plan of the years of service the qualified employee completed under the composite plan after the employee satisfies the requirements of subparagraph 7,b71 disregarding any years of service that has been forfeited under the rules of the composite plan unless contrary to service records provided by the participant4 ,in the case of a conflict1 the plan sponsor shall evaluate the evidence and make a reasonable factual determination4 4 7#b7 ,reduction of benefits 7,a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #bjc7;a77#c77;,e77ii7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7;a77#c77;,e77ii77 is amended-- 7i7 in subclause 7,i7 by striking #dbdd;,a and inserting #cje7;f71 #hjc12 and 7ii7 in subclause 7,,ii7 by striking #dbde and inserting #cje7;f71 #dbde14 7,b7 ,internal ,revenue ,code of #aihf ,section #daa7;a77#c77;,f7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 in clause 7i7 by striking section #dah;,d or under section #dbha of the ,employee ,retirement ,income ,security ,act of #aigd and inserting section #dcb7;f7 or #dci or under section #dbha of the ,employee ,retirement ,income ,security ,act of #aigd2 and 7ii7 in clause 7ii7 by inserting or #dcb7;f7 after section #dah;,e4 7#c7 ,accrued benefit requirements 7,a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #bjd7;b77#a77;,b77i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajed7;b77#a77;,b77i77 is amended by inserting 1 including an amendment reducing or suspending benefits under section #cje7;f71 #hjc1 #dbde or #dbha1 after any amendment to the plan4 7,b7 ,internal ,revenue ,code of #aihf ,section #daa7;b77#a77;,b77i7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 including an amendment reducing or suspending benefits under section #dah;,e1 #dcb7;f7 or #dci1 or under section #dbha of the ,employee ,retirement ,income ,security ,act of #aigd1 after any amendment to the plan4 7#d7 ,additional accrued benefit requirements 7,a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #bjd7;b77#a77;,h77v7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7;b77#a77;,h77v77 is amended by inserting before the period at the end the following3 1 or benefits are reduced or suspended under section #cje7;f71 #hjc1 #dbde1 or #dbha4 7,b7 ,internal ,revenue ,code of #aihf ,section #daa7;b77#a77;,h77iv7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 in the heading by striking benefit and inserting benefit and the suspension and reduction of certain benefits2 and 7ii7 in the text by inserting before the period at the end the following3 1 or benefits are reduced or suspended under section #dah;,e1 #dcb7;f71 or #dci1 or under section #dbha of the ,employee ,retirement ,income ,security ,act of #aigd4 7#e7 ,accrued benefit not to be decreased by amendment 7,a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #bjd7;g77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajec7;g77#a77 is amended by inserting after #cjb7;d77#b7 the following3 1 #cje7;f71 #hjc1 #dbde14 7,b7 ,internal ,revenue ,code of #aihf ,section #daa7;d77#f77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting after #dab7;d77#b71 the following3 #dah;,e1 #dcb7;f71 or #dci14 7g7 ,certain funding rules not applicable 7#a7 ,employee ,retirement ,income ,security ,act of #aigd ,section #cje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajhe71 as amended by section #bab7;a7 and as in effect before the amendments made by section #bab other than subsection 7a7 thereof1 is further amended by adding at the end the following3 7l7 ,legacy plans ,this section and sections #cjb and #cjd shall not apply to an employer that has an obligation to contribute to a plan that is a legacy plan within the meaning of section #hje7;a7 solely because the employer has an obligation to contribute to a composite plan described in section #hja that is associated with that legacy plan4 4 7#b7 ,internal ,revenue ,code of #aihf ,section #dcb of the ,internal ,revenue ,code of #aihf1 as amended by section #baa7;a7 and as in effect before the amendments made by section #baa other than subsection 7a7 thereof1 is further amended by adding at the end the following3 7l7 ,legacy plans ,this section and sections #dab and #dca shall not apply to an employer that has an obligation to contribute to a plan that is a legacy plan within the meaning of section #ddj;,a7a7 solely because the employer has an obligation to contribute to a composite plan described in section #dcg that is associated with that legacy plan4 4 7h7 ,termination of composite plan ,section #djc7;d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajc7;d77 is amended-- 7#a7 in paragraph 7#a71 by striking regulations of the ,secretary4 and inserting regulations of the ,secretary1 or as provided in paragraph 7#c742 and 7#b7 by adding at the end the following3 7#c7 ,section #djdd7;a7 of this ,act shall be applied in the case of the termination of a composite plan by-- 7,a7 limiting the benefits subject to paragraph 7#c7 thereof to benefits as defined in section #hjb7;b77#c77;,b72 and 7,b7 including in the benefits subject to paragraph 7#d7 all other benefits 7if any7 of individuals under the plan that would be guaranteed under section #djbb;,a if the plan were subject to title ,,iv4 4 7i7 ,good faith compliance prior to guidance ,where the implementation of any provision of law added or amended by this ,act is subject to issuance of regulations by the ,secretary of ,labor1 the ,secretary of the ,treasury1 or the ,pension ,benefit ,guaranty ,corporation1 a multiemployer plan shall not be treated as failing to meet the requirements of any such provision prior to the issuance of final regulations or other guidance to carry out such provision if such plan is operated in accordance with a reasonable1 good faith interpretation of such provision4 #eje4 ,effective date ,unless otherwise specified1 the amendments made by this title shall apply to plan years beginning after the date of the enactment of this title4 ,,vi ,financial provisions #fja4 ,additional premiums 7a7 ,increase in flat dollar premium beginning in #bjba ,section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 in clause 7vi7-- 7i7 by inserting and before ,january #a1 #bjba1 after #bjad12 and 7ii7 by striking or at the end2 7,b7 by moving the margins of clause 7vii7 #b ems to the left2 7,c7 by redesignating clause 7vii7 as clause 7ix72 and 7,d7 by inserting after clause 7vi7 the following3 7vii7 in the case of a multiemployer plan1 for plan years beginning in calendar year #bjba1 for each individual who is a participant in such plan during the plan year1 the dollar amount in effect under clause 7i7 for plan years beginning in #bjba1 4 7b7 ,flat and variable rate premium for years after #bjba ,section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c771 as amended by subsection 7a71 is further amended-- 7#a7 by inserting after clause 7vii7 of subparagraph 7,a7 the following3 7viii7 in the case of a multiemployer plan1 for any plan year beginning after ,december #ca1 #bjba1 an amount for each individual who is a participant in such plan during the plan year equal to the sum of-- 7,i7 the premium rate applicable under clause 7i77,,viii71 plus 7,,ii7 the additional premium 7if any7 determined under subparagraph 7,n7 for the plan year1 or 2 and 7#b7 by adding at the end the following3 7,n7 7i7 ,the additional premium determined under this subparagraph with respect to any multiemployer plan for any plan year shall be an amount equal to the least of-- 7,i7 the amount determined under clause 7ii7 for the plan year divided by the number of participants in such plan as of the close of the preceding plan year2 7,,ii7 #aj percent of the historic base contributions divided by the number of participants in such plan as of the close of the preceding plan year2 or 7,,iii7 #bej4 7ii7 ,the amount determined under this clause for any plan year shall be an amount equal to #aj for each #a1jjj 7or fraction thereof7 of the multiemployer unfunded vested benefits under the plan as of the close of the preceding plan year4 ,for purposes of this clause1 the term multiemployer unfunded vested benefits means1 for a plan year1 the excess 7if any7 of-- 7,i7 the current liability of the plan as determined under section #cjd7;c77#f77;,d7 by taking into account only vested benefits1 over 7,,ii7 the fair market value 7as determined under section #cjd7;c77#f77;,a77ii77,i77 of the plan assets for the plan year which are held by the plan as of the valuation date4 7iii7 ,for purposes of clause 7i77,,ii71 the term historic base contributions means the average amount of the contributions1 excluding any payments of withdrawal liability1 to the plan required to be reported by the plan on ,schedule ,,mb of the #c most recent ,forms #eejj required to be filed before the date of enactment of this subparagraph4 7iv7 ,for each plan year beginning after ,december #ca1 #bjbb1 there shall be substituted for the dollar amount of historic base contributions under clause 7i77,,ii7 and the dollar amount specified in clause 7i77,,iii7 an amount equal to the greater of-- 7,i7 the product derived by multiplying such dollar amount for plan years beginning in that calendar year by the ratio of-- 7aa7 the national average wage index 7as defined in section #bji7k77#a7 of the ,social ,security ,act7 for the first of the #b calendar years preceding the calendar year in which such plan year begins1 to 7bb7 the national average wage index 7as so defined7 for #bjbj1 or 7,,ii7 such dollar amount in effect for plan years beginning in the preceding calendar year4 ,if any amount determined under this clause is not a multiple of #a1 such product shall be rounded to the nearest multiple of #a4 4 7c7 ,additional premiums ,section #djjf7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a771 as amended by this ,act1 is further amended by adding at the end the following3 7#aj7 ,additional premiums payable by participants and beneficiaries 7,a7 ,in general ,in addition to the amounts payable under paragraph 7#c71 for plan years beginning after ,december #ca1 #bjba1 with respect to multiemployer plans1 premiums shall be payable to the corporation with respect to participants and beneficiaries who are in pay status in accordance with this paragraph4 7,b7 ,amounts payable ,subject to subparagraphs 7,c71 7,d71 and 7,e71 the monthly amount payable by each participant or beneficiary who is in pay status is-- 7i7 an amount equal to #c percent of the participant's or beneficiary's aggregate monthly benefit1 in the case of a plan in endangered status1 as described in section #cje7;b77#b72 7ii7 an amount equal to #e percent of the participant's or beneficiary's aggregate monthly benefit1 in the case of a plan in critical status1 as described in section #cje7;b77#c72 7iii7 an amount equal to #g percent of the participant's or beneficiary's aggregate monthly benefit1 in the case of a plan in critical and declining status 7as described in section #cje7;b77#g771 a plan that became an insolvent plan after the date of enactment of this paragraph1 or a plan that has been terminated under section #djda;,a or #djdb but is not insolvent1 unless that plan is 7or was7 an original or successor plan pursuant to a special partition order under section #dbcc;,a2 or 7iv7 notwithstanding clauses 7i71 7ii71 or 7iii71 an amount equal to #aj percent of the participant's or beneficiary's aggregate monthly benefit1 in the case of a plan which is 7or was7 an original or successor plan pursuant to a special partition order under section #dbcc;,a1 regardless of the status of the original or successor plan4 7,c7 ,coordination with suspension of benefits ,in the case of any participant or beneficiary whose benefits are suspended under section #cje7;f77#i71 the percentage of benefits payable under the applicable clause of subparagraph 7,b7 with respect to the participant or beneficiary shall be reduced 7but not below zero7 by the percentage of benefits which were so suspended4 7,d7 ,treatment of benefits based on disability ,no benefits-- 7i7 based on disability 7as defined by the plan71 or 7ii7 of a participant or beneficiary who is entitled to a benefit under title ,,ii of the ,social ,security ,act on the basis of a disability 7as defined in section #bbc7;d77#b7 of such ,act71 shall be included in the calculation of the participant's or beneficiary's aggregate monthly benefit for purposes of determining the payment due under subparagraph 7,b74 7,e7 ,phaseout of premium for those aged #ge and older 7i7 ,in general ,in the case of a participant or beneficiary who has attained or will attain at least #ge years of age in a plan year1 the monthly amount payable by such participant or beneficiary for months during such plan year under this paragraph 7determined without regard to this subparagraph7 shall be reduced by the applicable percentage of such amount4 7ii7 ,applicable percentage ,for purposes of clause 7i71 the applicable percentage for any month shall be determined in accordance with the following table3 ,if the individual is1 or will attain during the plan year1 age3,the applicable percentage is3#gebj percent#gfdj percent#ggfj percent#ghhj percent#gi or older #ajj percent4 7,f7 ,methods of collection ,the premiums payable under subparagraph 7,b7 shall be collected by the plan from participants who are receiving benefits under the plan by deducting the amount of the premium from the benefits as and when paid1 and holding such amounts in a separate account to be remitted to the corporation annually1 as prescribed by regulations of the corporation4 ,amounts held in a separate account under this subparagraph shall not accrue interest1 shall not be treated as assets of the plan1 and shall not be commingled with any other assets of the plan4 7,g7 ,plan amendments ,the administrator of each multiemployer plan shall amend the plan documents to allow for deductions from benefits pursuant to this paragraph4 7,h7 ,preemption ,this paragraph shall supersede any law of a ,state which would directly or indirectly prohibit or restrict an employer1 plan1 or labor organization from withholding or remitting premium amounts in accordance with this paragraph4 7,i7 ,determination of plan status 7i7 ,in general ,except as otherwise provided by the regulations issued pursuant to clause 7ii71 for purposes of determining premiums due under this paragraph1 the plan's status shall be the status certified under section #cje for the first plan year beginning on or after ,january #a1 #bjba4 7ii7 ,subsequent changes in status ,the corporation shall issue regulations regarding the timing required for reflecting1 in the amounts withheld1 a revised plan status certified at a later date4 ,in no event shall such regulations allow a delay of more than #ij days4 7#aa7 ,additional premiums payable by employers and labor organizations 7,a7 ,in general ,in addition to the amounts payable under paragraph 7#c71 for plan years beginning after ,december #ca1 #bjba1 with respect to multiemployer plans1 premiums shall be payable to the corporation with respect to employers and labor organizations in accordance with this paragraph4 7,b7 ,employers ,the monthly amount payable by employers1 for each employee participating in the plan 7as determined under subparagraph 7,d77 during that month is-- 7i7 #a in the case of a plan in unrestricted status pursuant to section #cje7;b77#a77;,b71 or #a4ej in the case of a plan in stable status pursuant to section #cje7;b77#a77;,a71 but only if the plan is not an original plan or a successor plan within the meaning of section #dbcc;,a2 and 7ii7 #b4ej in any other case4 7,c7 ,labor organizations ,the monthly amount payable by labor organizations1 for each member paying dues and participating in the plan 7as determined under subparagraph 7,d77 during that month is-- 7i7 #a in the case of a plan in unrestricted status pursuant to section #cje7;b77#a77;,b71 or #a4ej in the case of a plan in stable status pursuant to section #cje7;b77#a77;,a71 but only if the plan is not an original plan or a successor plan within the meaning of section #dbcc;,a2 and 7ii7 #b4ej in any other case4 7,d7 ,persons participating in the plan ,for purposes of subparagraphs 7,b7 and 7,c71 an employee or member participating in the plan during any month is a person with respect to whom the employer had an obligation to contribute to the plan under the terms of a collective bargaining agreement or other participation agreement for that month4 7,e7 ,remittance ,premiums required under subparagraph 7,b7 or 7,c7 shall be remitted to the plan monthly and held in a separate account until remittance1 as prescribed in subparagraph 7,f74 ,in the case of a participant or beneficiary on whose behalf more than one employer contributed during a month1 the plan may elect to apportion the monthly amount to the employers on a proportional basis4 ,amounts held in a separate account under this subparagraph shall not accrue interest1 shall not be treated as assets of the plan1 and shall not be commingled with any other assets of the plan4 7,f7 ,submission to the corporation ,each plan shall submit the premiums under subparagraph 7,e7 to the corporation1 on an annual basis1 as prescribed by regulations of the corporation4 7,g7 ,determination of plan status 7i7 ,in general ,except as otherwise provided by the regulations issued pursuant to clause 7ii71 for purposes of determining premiums due under this paragraph1 the plan's status shall be the status certified under section #cje for the first plan year beginning on or after ,january #a1 #bjba4 7ii7 ,subsequent changes in status ,the corporation shall issue regulations regarding the timing required for reflecting1 in the amounts due1 a revised plan status certified at a later date4 ,in no event shall such regulations allow a delay of more than #ij days4 4 7d7 ,payment of premiums 7#a7 ,applicability of premiums ,section #djjg7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjg7;b77 is amended by adding at the end the following3 7#c7 7,a7 7i7 ,the following plans shall not owe a variable rate premium determined under section #djjf7;a77#c77,n73 7,i7 ,an insolvent plan that has commenced receiving financial assistance4 7,,ii7 ,a plan which is certified by the plan actuary under section #cje as being in unrestricted status pursuant to section #cje7;b77#a77;,b71 and which is not an original plan within the meaning of section #dbcc;,a4 7,,iii7 ,with respect to plan years beginning before ,january #a1 #bjbe1 a plan which is certified by the plan actuary under section #cje as being in stable status pursuant to section #cje7;b77#a77;,a71 and which is not an original plan within the meaning of section #dbcc;,a4 7ii7 ,an insolvent plan that has commenced receiving financial assistance shall not owe the flat rate premium under section #djjf7;a77#c77;,a77viii77,i74 7,b7 ,in the case of a special partition under section #dbcc;,a1 the original plan shall calculate and remit premiums under section #djjf as if the original plan and successor plan were one plan and the successor plan shall not be required to remit any such premiums4 7#d7 ,paragraph 7#a7 shall apply to the additional premiums required by section #djjf7;a77#aj7 and 7#aa74 4 7#b7 ,authorized civil actions ,section #djjg7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjg7;c77 is amended by inserting after the first sentence the following3 ,the corporation is authorized to bring a civil action to prevent or correct any action by a designated payor1 if a principal purpose of the action by the designated payor is to evade or avoid the payment of premiums1 and the corporation shall be authorized to recover the amount of premium that should have been paid by such payor1 plus a late payment penalty and interest44 7e7 ,reporting on premium increases and guarantee reductions ,section #djjh of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjh7 is amended by adding at the end the following3 7c7 ,beginning with the report for fiscal year #bjbe1 if the corporation projects in its reporting under this section that the corporation's multiemployer plan program will not remain solvent for at least #aj years after the date of the report1 the corporation shall include in the report a recommendation for a balanced combination of premium increases and guarantee reductions needed to ensure solvency for the next #bj years without respect to any loans under section #djje4 ,such recommendations shall be automatically adopted at the beginning of the next fiscal year unless ,congress takes other action4 4 7f7 ,delinquent contributions 7#a7 ,in general ,section #eae of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aade7 is amended-- 7,a7 by striking contributions4--,every1 and inserting 8contributions and premiums4-- 7a7 ,in general ,every 1 and 7,b7 by adding at the end the following new subsection3 7b7 ,premiums ,every employer or labor organization which is obligated to remit premiums with respect to a multiemployer plan under section #djjf shall remit such premiums to the plan in accordance with the terms of the plan and regulations issued by the corporation4 4 7#b7 ,civil enforcement ,section #ejb7;g77#b77;,a7 of such ,act 7#bi ,u4,s4,c4 #aacb7;g77#b77;,a77 is amended by striking contributions1 and inserting contributions or premiums14 #fjb4 ,funding 7a7 ,loans to the corporation for the fund ,to pay basic benefits ,section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje7 is amended by adding at the end the following3 7i7 7#a7 ,the corporation may borrow from the ,secretary of the ,treasury such funds as are necessary to pay basic benefits guaranteed under section #djbb;,a or expenses related to the corporation's multiemployer plan program if the balance of assets in the revolving fund established under subsection 7a7 for purposes of paying such benefits is #ejj1jjj1jjj or less within that year4 ,the corporation may invest amounts so borrowed in accordance with subsection 7b77#c77;,a74 7#b7 ,amounts borrowed under this subsection shall be-- 7,a7 issued at an annual interest rate of #j percent2 and 7,b7 repaid by the corporation-- 7i7 beginning #bj years after the date on which the loan is issued2 7ii7 over a period of not more than #bj years from commencement of repayment2 and 7iii7 out of the fund established under subsection 7a7 to pay basic benefits guaranteed under section #djbb;,a4 7#c7 ,the corporation shall notify the ,committee on ,health1 ,education1 ,labor1 and ,pensions and the ,committee on ,finance of the ,senate and the ,committee on ,education and ,labor and the ,committee on ,ways and ,means of the ,house of ,representatives within #ad days of requesting a loan under this subsection4 7#d7 ,beginning on ,january #a1 #bjba1 if1 as of the close of any calendar year the outstanding balance of the loans provided to the corporation during the previous year under this subsection exceeded #b1jjj1jjj1jjj1 the multiemployer flat-rate premium rates applicable under section #djjf7;a7 solely for plan years beginning in the immediately succeeding calendar year shall be increased by #bj percent4 4 7b7 ,study on funding for basic benefit guarantee ,section #djbb;,a7f7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acbb;a7f77 is amended-- 7#a7 by striking ,committee on ,labor and ,human ,resources each place such term appears and inserting ,committee on ,health1 ,education1 ,labor1 and ,pensions2 7#b7 in paragraph 7#a77;,a7-- 7,a7 in clause 7i71 by striking 1 and and inserting a semicolon2 and 7,b7 by inserting after clause 7ii7 the following3 7iii7 whether the ,corporation projects that the loans issued under section #djje7;i7 will be repaid in accordance with the schedule set forth in paragraph 7#b77;,b7 of such section2 and 2 7#c7 in paragraph 7#b7-- 7,a7 in subparagraph 7,a7-- 7i7 in the matter preceding clause 7i71 by inserting and repayment of loans under section #djje7;i7 after multiemployer plans2 and 7ii7 in clause 7ii71 by inserting 1 and repayment of any loans issued under section #djje7;i7 before the comma at the end2 and 7,b7 in subparagraph 7,c71 by striking second2 and 7#d7 in paragraph 7#c77;,a77ii71 by inserting and repayment of loans issued under section #djje7;i7 before the period4 #fjc4 ,composite plan transition fee 7a7 ,in general ,section #djjf7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a771 as amended by this ,act1 is further is amended by adding at the end the following3 7#ab7 ,composite plan transition fee ,notwithstanding paragraph 7#i71 in any year after #bjbd1 a composite plan 7as defined in section #hja7;a77 shall remit to the legacy plan 7within the meaning of section #hje7 #ae per participant that is not also a participant in the legacy plan4 ,the legacy plan shall remit such amount to the corporation in addition to its premiums otherwise required under this section4 4 7b7 ,conforming amendment ,section #djjg7;b77#d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjg7;b77#d771 as added by section #fja1 is amended by inserting 1 and the transition fees required by section #djjf7;a77#ab7 before the period4