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Bill
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Title III — Defined benefit system reforms

S. 1979 · 113th Congress · Jan 30, 2014 · Lineage

III Defined benefit system reforms

A Defined benefit pension plan reforms

Sec. 301 Hybrid plans

(a)
Amendments to ERISA—
(1)
Reasonable minimum rates disregarded— Section 204(b)(5)(B)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(b)(5)(B)(i)) is amended—
(A)
in subclause (I), by adding at the end the following new sentence: “Any rate described in subclause (IV) or (V) shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause.”; and
(B)
by adding at the end the following:

“(IV) Reasonable minimum guaranteed rates for investment-based interest credits—In the case of an interest credit (or equivalent amount) that is based on an actual investment (or on an index that is structured to have effects similar to the effects of an actual investment), a fixed annual crediting rate equal to 3 percent (or a lower rate not less than zero that is specified in the plan) with respect to all contribution credits credited to a participant’s account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return. For purposes of this subclause, the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant’s benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant’s benefit.

“(V) Reasonable minimum rates for other interest crediting bases—In the case of an interest credit (or equivalent amount) that is not described in subclause (IV), an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section 415(b)(2)(E)(i) of the Internal Revenue Code of 1986 (without regard to section 415(b)(2)(E)(ii) of such Code) shall be treated as a reasonable minimum guaranteed rate of return described in such subclause.”

(2)
Permitted fixed rates— Section 204(b)(5)(B)(i) of such Act (29 U.S.C. 1054(b)(5)(B)(i)), as amended by paragraph (1)(B), is amended by adding at the end the following:

“(VI) Permitted fixed rate of return—An annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause (V) plus one percentage point shall be deemed to satisfy the requirements of subclause (I).”

(3)
Protecting plan participants from losing access to market rates—
(A)
In general— Section 204(b)(5)(B) of such Act (29 U.S.C. 1054(b)(5)(B)(i)(III)) is amended by adding at the end the following new clause:

“(iii) Special rules relating to market rate of return—For purposes of clause (i)(III)—

“(I) In general—Except as provided in this subclause, any rate of return available in the market, shall, under the regulation under clause (i)(III), be permitted as a market rate of return under clause (i)(I).

“(II) Secretarial authority—Except as provided in subclause (III), the Secretary of the Treasury may prescribe by regulation that a rate of return available in the market is not permitted under clause (i)(I) if such rate is designed to evade the purposes of clause (i)(I) and is not consistent with the purposes of a defined benefit plan. Such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities (as defined in section 407(d)(1)), on alternative investments generally not appropriate as an exclusive or primary investment for retirement, or on other similar investments.

“(III) Specified safe harbor rates—The following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause (i)(I):

“(aa) The first, second, or third segment rate (as defined in section 430(h)(2)(C) of the Internal Revenue Code of 1986 (without regard to clause (iv) thereof)) or any combination of such rates.

“(bb) The discount rate on 3-month, 6-month, and 12-month Treasury bills with appropriate margins determined under regulations prescribed by the Secretary of the Treasury.

“(cc) The yield on 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year Treasury Constant Maturities with appropriate margins determined under regulations prescribed by the Secretary of the Treasury.

“(dd) The actual return on all or a diversified portion of the assets of the plan.

“(ee) Any total return index or price index commonly used as an investment benchmark, as determined under regulations prescribed by the Secretary of the Treasury.

“(ff) The rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a State.

“(gg) A cost of living index with appropriate margin, as determined under regulations promulgated by the Secretary of the Treasury.

“(hh) The rate of return on a broad-based regulated investment company, as determined under regulations promulgated by the Secretary of the Treasury.

“(ii) Any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause (i), a stable value fund, or an investment available only through a brokerage account (or similar arrangement).”

(b)
Amendments to 1986 Code—
(1)
Reasonable minimum rates disregarded— Section 411(b)(5)(B)(i) of the Internal Revenue Code of 1986 is amended—
(A)
in subclause (I), by adding at the end the following new sentence: “Any rate described in subclause (IV) or (V) shall be disregarded in determining whether a plan is treated as satisfying the requirements of the first sentence of this subclause.”; and
(B)
by adding at the end the following:

“(IV) Reasonable minimum guaranteed rates for investment-based interest credits—In the case of an interest credit (or equivalent amount) that is based on an actual investment (or on an index that is structured to have effects similar to the effects of an actual investment), a fixed annual crediting rate equal to 3 percent (or a lower rate not less than zero that is specified in the plan) with respect to all contribution credits credited to a participant’s account balance or similar amount during the guarantee period shall be treated as a reasonable minimum guaranteed rate of return. For purposes of this subclause, the guarantee period begins on the prospective date that such reasonable minimum guaranteed rate applies to the participant’s benefit under the plan and ends on the date that such reasonable minimum guaranteed rate ceases to apply to the participant’s benefit.

“(V) Reasonable minimum rates for other interest crediting bases—In the case of an interest credit (or equivalent amount) that is not described in subclause (IV), an annual interest rate equal to the lowest interest rate permitted with respect to any plan under section 415(b)(2)(E)(i) (without regard to section 415(b)(2)(E)(ii)) shall be treated as a reasonable minimum guaranteed rate of return described in such subclause.”

(2)
Permitted fixed rates— Section 411(b)(5)(B)(i) of such Code, as amended by paragraph (1)(B), is further amended by adding at the end the following:

“(VI) Permitted fixed rate of return—An annual interest crediting rate that is a fixed annual crediting rate and that does not exceed the rate described in subclause (V) plus one percentage point shall be deemed to satisfy the requirements of subclause (I).”

(3)
Protecting plan participants from losing access to market rates—
(A)
In general— Section 411(b)(5)(B) of such Code is amended by adding at the end the following:

“(iii) Special rules relating to market rate of return—For purposes of clause (i)(III)—

“(I) In general—Except as provided in this subclause, any rate of return available in the market, shall, under the regulation under clause (i)(III), be permitted as a market rate of return under clause (i)(I).

“(II) Secretarial authority—Except as provided in subclause (III), the Secretary may prescribe by regulation that a rate of return available in the market is not permitted under clause (i)(I) if such rate is designed to evade the purposes of clause (i)(I) and is not consistent with the purposes of a defined benefit plan. Such authority shall apply only to a rate of return based exclusively or primarily on the returns on employer securities (as defined in section 407(d)(1)), on alternative investments generally not appropriate as an exclusive or primary investment for retirement, or on other similar investments.

“(III) Specified safe harbor rates—The following rates of return and any combination of such rates shall be deemed to be market rates of return that satisfy clause (i)(I):

“(aa) The first, second, or third segment rate (as defined in section 430(h)(2)(C) (without regard to clause (iv) thereof)) or any combination of such rates.

“(bb) The discount rate on 3-month, 6-month, and 12-month Treasury bills with appropriate margins determined under regulations prescribed by the Secretary.

“(cc) The yield on 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year Treasury Constant Maturities with appropriate margins determined under regulations prescribed by the Secretary.

“(dd) The actual return on all or a diversified portion of the assets of the plan.

“(ee) Any total return index or price index commonly used as an investment benchmark, as determined under regulations prescribed by the Secretary.

“(ff) The rate of return on an annuity contract for a participant issued by an insurance company licensed under the laws of a State.

“(gg) A cost of living index with appropriate margin, as determined under regulations promulgated by the Secretary.

“(hh) The rate of return on a broad-based regulated investment company, as determined under regulations promulgated by the Secretary.

“(ii) Any investment in which participants may elect to invest under a defined contribution plan maintained by the sponsor of the plan other than an investment with a rate of return prohibited under clause (i), a stable value fund, or an investment available only through a brokerage account (or similar arrangement).”

(c)
Protecting plan participants from retroactive benefit decreases—
(1)
In general— If an interest credit (or equivalent amount) under a plan subject to section 411(b)(5)(B)(i)(I) of the Internal Revenue Code of 1986 or section 204(b)(5)(B)(i)(I) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(b)(5)(B)(i)(I)) was reasonable in relation to market rates in existence when such interest credit (or equivalent amount) was established (disregarding any minimum rates of return that were reasonable when established), such interest credit (or equivalent amount) shall be treated as satisfying the requirements of section 411(b)(5)(B)(i)(I) of such Code and section 204(b)(5)(B)(i)(I) of such Act for the transition period.
(2)
Transition period— For purposes of paragraph (1), the transition period, with respect to any plan, begins on the date that section 411(b)(5)(B)(i)(I) of such Code or section 204(b)(5)(B)(i)(I) of such Act first applied to such plan and ends on the effective date of comprehensive final regulations under such sections prescribed by the Secretary of the Treasury.
(d)
Ensuring fairness when interest credits are required To be decreased—
(1)
In general— In the case of an interest credit (or equivalent amount) under a plan subject to section 411(b)(5)(B)(i)(I) of the Internal Revenue Code of 1986 or section 204(b)(5)(B)(i)(I) of the Employee Retirement Income Security Act of 1974 that is in effect for the last plan year prior to the effective date of comprehensive final regulations under such section of such Code but does not comply with such regulations determined after application of subsection (c), the Secretary of the Treasury shall provide an exception from the requirements of section 411(d)(6) of such Code and section 204(g) of such Act for a reduction in such interest credit (or equivalent amendment) that is made pursuant to such comprehensive final regulations.
(2)
Exception— The exception under paragraph (1) from section 204(g) of such Act and section 411(d)(6) of such Code shall be issued through regulations to ensure the opportunity of interested persons to make comments through a public notice and comment process. Such exception shall permit any interest credit (or equivalent amount) to which this subsection applies to be modified to be the maximum fixed rate of return permitted under section 204(b)(5)(B)(i)(VI) of such Act or section 411(b)(5)(B)(i)(VI) of such Code or to be the maximum rate permitted under any rate of return deemed to be a market rate of return pursuant to section 204(b)(5)(B)(i)(III) of such Act or section 411(b)(5)(B)(i)(III) of such Code. The Secretary of the Treasury shall further structure the exception to ensure that there are clear and simple methods for plans to comply with the requirements of section 204(b)(5)(B)(i)(I) of such Act and section 411(b)(5)(B)(i)(I) of such Code.
(e)
Protecting participants from plan freezes through appropriate transition rules—
(1)
In general— In the case of any defined benefit plan to which this subsection applies, comprehensive regulations under sections 203(f)(1) and 204(b)(5)(B)(i) of the Employee Retirement Income Security Act of 1974 or sections 411(a)(13)(A) and 411(b)(5)(B)(i) of the Internal Revenue Code of 1986 shall not take effect before the first plan year beginning at least 1 year after the later of—
(A)
the date of publication of such regulations; or
(B)
the date of publication of the regulations described in subsection (d).
(2)
Pension equity plans— This subsection applies to any defined benefit plan that—
(A)
is subject to section 204(b)(5) of the Employee Retirement Income Security Act of 1974 or section 411(b)(5) of the Internal Revenue Code of 1986;
(B)
expresses any portion of any participant’s benefit as a current value equal to an accumulated percentage of the employee’s final average compensation; and
(C)
in the absence of guidance from the Secretary of the Treasury or the Secretary of Labor, has been structured in a reasonable, good faith manner to comply with the requirements of such Code and such Act with respect to benefits described in subparagraph (B).
(3)
Period prior to effective date of regulations— In the case of a plan to which this subsection applies, no rule shall be issued and no adverse enforcement action shall be taken by the Secretary of the Treasury or the Secretary of Labor with respect to a plan described in paragraph (2) regarding the structure of the benefits described in paragraph (2)(B) for any period prior to the effective date of comprehensive final regulations issued by the Secretary of the Treasury with respect to such benefits. Such final regulations shall not be effective before the first plan year beginning at least 1 year after publication of such regulations.
(f)
Effective date—
(1)
In general— Except as otherwise provided, the amendments and other provisions of this section shall take effect as if included in section 701 of the Pension Protection Act of 2006 (Public Law 109–280; 120 Stat. 981).
(2)
Hold harmless— With respect to any period prior to the effective date of the comprehensive regulations described in subsection (e), no plan shall fail to comply with any requirement of the Employee Retirement Income Security Act of 1974 or of the Internal Revenue Code of 1986 by reason of complying with the law in effect without regard to the amendments made by subsections (a) and (b).

Sec. 302 Clarification of the normal retirement age

(a)
Amendments to ERISA— Section 204 of the Employee Retirement Income Security Act of 1974 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection:

“(k) Special rule for determining normal retirement age for certain existing defined benefit plans

“(1) In general—For purposes of section 3(24), an applicable plan shall not be treated as failing to meet any requirement of this title, or as failing to have a uniform normal retirement age for purposes of this title, solely because the plan has adopted the normal retirement age described in paragraph (2).

“(2) Applicable plan—For purposes of this subsection—

“(A) In general—The term applicable plan means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of—

“(i) an age otherwise permitted under section 2(24), or

“(ii) the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan.

“(B) Expanded application—If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers.”

(b)
Amendment to 1986 Code— Section 411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(f) Special rule for determining normal retirement age for certain existing defined benefit plans

“(1) In general—For purposes of subsection (a)(8)(A), an applicable plan shall not be treated as failing to meet any requirement of this subchapter, or as failing to have a uniform normal retirement age for purposes of this subchapter, solely because the plan has adopted the normal retirement age described in paragraph (2).

“(2) Applicable plan—For purposes of this subsection—

“(A) In general—The term applicable plan means a defined benefit plan that, on the date of the introduction of this subsection, has adopted a normal retirement age which is the earlier of—

“(i) an age otherwise permitted under subsection (a)(8)(A), or

“(ii) the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan.

“(B) Expanded application—If, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall also be treated as an applicable plan with respect to such participants or participating employers.”

Sec. 303 Moratorium on imposition of shutdown liability

(a)
In general— The Pension Benefit Guaranty Corporation shall not bring any new action against a plan sponsor to enforce subsection (e) of section 4062 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1362) before January 30, 2016.
(b)
Study— The Comptroller General of the United States shall study the effectiveness, fairness, and utility of section 4062(e) of the Employee Retirement Income Security Act (29 U.S.C. 1101 et seq.). No later than January 30, 2015, the Comptroller General shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives summarizing its findings and including recommendations for alternative ways to protect retirees and the Pension Benefit Guaranty Corporation from cessations of operations while encouraging employers to both continue to offer defined benefit pension plans and to restructure as may be necessary to ensure the ongoing viability of the business.

Sec. 304 Alternative funding target attainment percentage determined without regard to reduction for credit balances

(a)
Amendments to ERISA— Section 206(g) of Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)) is amended—
(1)
in paragraph (5), by striking subparagraph (C); and
(2)
in paragraph (9)—
(A)
in subparagraph (B)—
(i)
by striking the period at the end and inserting “; and”;
(ii)
by striking “under subparagraph (A) by increasing” and inserting the following:

“(i) by increasing”

(iii)
by adding at the end the following:

“(ii) without regard to the reduction under section 303(f)(4)(B).”

(B)
by striking subparagraphs (C) and (D).
(b)
Amendments to 1986 Code— Section 436 of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (f), by striking paragraph (3); and
(2)
in subsection (j)—
(A)
in paragraph (2)—
(i)
by striking the period at the end and inserting “, and”; and
(ii)
by striking “under paragraph (1) by increasing” and inserting the following:

“(A) by increasing”

(iii)
by adding at the end the following:

“(B) without regard to the reduction under section 430(f)(4)(B).”

(B)
by striking the first and second paragraph (3).
(c)
Effective date— The amendments made by this section shall apply to plan years beginning after December 31, 2014.

Sec. 305 Method for determining changes for quarterly contributions

(a)
Amendment to ERISA— Section 303(j)(3)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(j)(3)(A)) is amended by inserting “(determined without regard to the reduction under subsection (f)(4)(B))” after “preceding plan year”.
(b)
Amendment to 1986 Code— Section 430(j)(3) of the Internal Revenue Code of 1986 is amended by inserting “(determined without regard to the reduction under subsection (f)(4)(B))” after “preceding plan year”.
(c)
Effective date— The amendments made by this section shall apply to plan years beginning after December 31, 2014.

Sec. 306 Election to discount contributions from final due date

(a)
Amendment to ERISA— Section 303(j)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(j)(2)) is amended by adding at the end the following: “For purposes of this paragraph, a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph (1).”.
(b)
Amendment to 1986 Code— Section 430(j)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: “For purposes of this paragraph, a plan sponsor may elect to treat all payments made after the valuation date as having been made on the last day permissible under paragraph (1).”.
(c)
Effective date— The amendments made by this section shall apply to plan years beginning after December 31, 2014.

Sec. 307 Simplification of elections and notices

(a)
Amendments to ERISA—
(1)
Timeliness of elections— Section 303 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083) is amended by adding at the end the following:

“(m) Timeliness of elections—An election required to be made by the plan sponsor under this section, including an election made under rules prescribed by the Secretary of the Treasury to implement this section, shall be deemed to have been timely made if the election is made on or before the due date specified in subsection (j)(1) or, if later, the due date of the actuarial report required under section 103(d).”

(2)
Time for providing notice— Section 101(f)(3)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(3)(B)) is amended—
(A)
in the heading, by striking “for small plans”;
(B)
by inserting “a plan with an adjusted funding target attainment percentage of more than 80 percent for the prior year or” after “In the case of”;
(C)
by striking “(as such term is used under section 303(g)(2)(B))”; and
(D)
by striking “upon” and inserting “not later than 2 months after”.
(b)
Amendment to 1986 Code— Section 430 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

“(m) Timeliness of elections—An election required to be made by the plan sponsor under this section, including an election made under rules prescribed by the Secretary to implement this section, shall be deemed to have been timely made if the election is made on or before the due date specified in subsection (j)(1) or, if later, the due date of the actuarial report required under section 6059.”

(c)
Effective date— The amendments made by this section shall apply to plan years beginning after December 31, 2014.

Sec. 308 Improved multiemployer plan disclosure

(a)
Disclosure and reporting by multiemployer plans—
(1)
Plan funding notices— Section 101(f) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)) is amended—
(A)
in paragraph (2)(B)—
(i)
by striking clause (v);
(ii)
by redesignating clauses (vi) through (x) as clauses (v) through (ix), respectively;
(iii)
in clause (vi), as so redesignated—
(I)
by striking “(I) in the case of” and inserting “in the case of”;
(II)
by striking “, or” and inserting a comma; and
(III)
by striking subclause (II); and
(iv)
by amending clause (vii), as so redesignated, to read as follows:

“(vii)

“(I) in the case of a single-employer plan, 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 apply, and

“(II) in the case of a multiemployer plan, a statement that eligible benefits are guaranteed by the Pension Benefit Guaranty Corporation, 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 apply,”

(B)
in paragraph (4)(C)—
(i)
by striking “(C) may be provided” and inserting “(C)(i) subject to clause (ii), may be provided”; and
(ii)
by striking the period and inserting the following:

“(ii) in the case of such a notice provided to the Pension Benefit Guaranty Corporation, shall be in an electronic format in such manner prescribed in regulations of such Corporation.”

(2)
Disclosures by plans regarding status—
(A)
Amendments to ERISA— Section 305(b)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(b)(3)) is amended—
(i)
in the paragraph heading, by striking “by plan actuary” and inserting “and report”;
(ii)
by amending subparagraph (A) to read as follows:

“(A) In general—Not later than the 90th day of each plan year of a multiemployer plan, the plan sponsor shall file, in accordance with regulations prescribed by the ERISA agencies, a report that contains—

“(i) documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor—

“(I) 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 5 succeeding plan years,

“(II) in the case of a plan which is in a funding improvement or rehabilitation period, whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and, if not, a summary of the primary reasons the plan is not making the scheduled progress,

“(III) 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 percentage,

“(IV) a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections, and

“(V)

“(aa) subject to item (bb), a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years, and

“(bb) in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year, the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years,

“(ii) as of the last day of the prior plan year, a good faith determination of—

“(I) the fair market value of the assets of the plan,

“(II) the number of participants who are—

“(aa) retired or separated from service and are receiving benefits,

“(bb) retired or separated participants entitled to future benefits, and

“(cc) active participants under the plan,

“(III) the total value of all benefits paid during the prior plan year,

“(IV) the total value of all contributions made to the plan during the prior plan year, and

“(V) the total value of all investment gains or losses during the prior plan year,

“(iii) 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 contribute,

“(iv) a copy of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and, if applicable, after the filing of the report required by this subparagraph for the prior plan year,

“(v) in the case of any plan amendment, scheduled benefit increase or reduction, or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year (as defined in regulations by the ERISA agencies), an explanation of the amendment, scheduled increase or reduction, or event, and a projection to the end of such plan year of the effect of the amendment, scheduled increase or reduction, or event on plan liabilities,

“(vi) in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period, a description of all reasonable measures, whether or not such measures were implemented, and a summary of the consideration of such measures,

“(vii) a good faith statement describing—

“(I) the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year,

“(II) any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction,

“(III) any significant reduction in the number of active plan participants and the reason for such reduction, and

“(IV) the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year, whether that amount was collected by the plan (and if not, the amount that was collected), and the remaining years on the employer's obligation to make withdrawal liability payments, and

“(viii) such other information as may be required by the ERISA agencies by regulation.”

(iii)
by striking subparagraph (C) and inserting the following:

“(C) Form and manner—The report required by subparagraph (A) shall be filed electronically in accordance with regulations prescribed by the ERISA agencies.”

(iv)
in subparagraph (D)—
(I)
by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively;
(II)
by inserting after clause (i) the following:

“(ii) Plans in endangered or critical status—If it is certified under subparagraph (A) that a multiemployer plan is or will be in endangered or critical status, the plan sponsor shall include in the notice under clause (i)—

“(I) a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as appropriate, adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement,

“(II) a summary of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, adopted under this section prior to the furnishing of such notice,

“(III) a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and

“(IV) 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 apply.”

(III)
in clause (iv), as so redesignated—
(aa)
by striking “The Secretary of the Treasury, in consultation with the Secretary” and inserting “The ERISA agencies”; and
(bb)
by striking “clause (ii)” and inserting “clauses (ii) and (iii)”; and
(IV)
by adding at the end the following:

“(E) Designation and coordination—The ERISA agencies shall—

“(i) designate one ERISA agency to receive the report described in subparagraph (A) on behalf of all the ERISA agencies, which shall each have full access to such report; and

“(ii) consult with each other and develop rules, regulations, practices, and forms, which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort, duplication of reporting, conflicting or overlapping requirements, and the burden of compliance with such provisions by plan administrators and plan sponsors.

“(F) ERISA agencies—In this paragraph, the term ERISA agencies means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation.”

(B)
Amendments to 1986 Code— Section 432(b)(3) of the Internal Revenue Code of 1986 is amended—
(i)
in the paragraph heading, by striking “by plan actuary” and inserting “and report”;
(ii)
by amending subparagraph (A) to read as follows:

“(A) In general—Not later than the 90th day of each plan year of a multiemployer plan, the plan sponsor shall file, in accordance with regulations prescribed by the ERISA agencies, a report that contains—

“(i) documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor—

“(I) 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 5 succeeding plan years,

“(II) in the case of a plan which is in a funding improvement or rehabilitation period, whether or not the plan is making the scheduled progress in meeting the requirements of its funding improvement or rehabilitation plan and, if not, a summary of the primary reasons the plan is not making the scheduled progress,

“(III) 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 percentage,

“(IV) a projection of the funding standard account on a year-by-year basis for the current plan year and the nine succeeding plan years and a statement of the actuarial assumptions for such projections, and

“(V)

“(aa) subject to item (bb), a projection of the cash flow of the plan and actuarial assumptions for the current plan year and six succeeding plan years, and

“(bb) in the case in which it is certified that a multiemployer plan is or will be in endangered or critical status for a plan year, the projection of the cash flow of the plan and actuarial assumptions for the current year and ten succeeding plan years,

“(ii) as of the last day of the prior plan year, a good faith determination of—

“(I) the fair market value of the assets of the plan,

“(II) the number of participants who are—

“(aa) retired or separated from service and are receiving benefits,

“(bb) retired or separated participants entitled to future benefits, and

“(cc) active participants under the plan,

“(III) the total value of all benefits paid during the prior plan year,

“(IV) the total value of all contributions made to the plan during the prior plan year, and

“(V) the total value of all investment gains or losses during the prior plan year,

“(iii) 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 contribute,

“(iv) a copy of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, that was adopted under this section prior to the filing of the report for the current plan year in accordance with this subparagraph and, if applicable, after the filing of the report required by this subparagraph for the prior plan year,

“(v) in the case of any plan amendment, scheduled benefit increase or reduction, or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year (as defined in regulations by the ERISA agencies), an explanation of the amendment, scheduled increase or reduction, or event, and a projection to the end of such plan year of the effect of the amendment, scheduled increase or reduction, or event on plan liabilities,

“(vi) in the case of a multiemployer plan certified to be in critical status for which the plan sponsor has determined that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reasonably be expected to emerge from critical status by the end of the rehabilitation period, a description of all reasonable measures, whether or not such measures were implemented, and a summary of the consideration of such measures,

“(vii) a good faith statement describing—

“(I) the withdrawal of any employer during the prior plan year and the percentage of total contributions made by that employer during the prior plan year,

“(II) any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction,

“(III) any significant reduction in the number of active plan participants and the reason for such reduction, and

“(IV) the annual withdrawal liability payment each employer is obligated to pay to the plan for the plan year, whether that amount was collected by the plan (and if not, the amount that was collected), and the remaining years on the employer's obligation to make withdrawal liability payments, and

“(viii) such other information as may be required by the ERISA agencies by regulation.”

(iii)
by striking subparagraph (C) and inserting the following:

“(C) Form and manner—The report required by subparagraph (A) shall be filed electronically in accordance with regulations prescribed by the ERISA agencies.”

(iv)
in subparagraph (D)—
(I)
by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively;
(II)
by inserting after clause (i) the following:

“(ii) Plans in endangered or critical status—If it is certified under subparagraph (A) that a multiemployer plan is or will be in endangered or critical status, the plan sponsor shall include in the notice under clause (i)—

“(I) a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as appropriate, adopted under this section and the actuarial and financial data that demonstrate any action taken by the plan toward fiscal improvement,

“(II) a summary of any funding improvement plan, rehabilitation plan, and any update thereto or modification thereof, adopted under this section prior to the furnishing of such notice,

“(III) a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and

“(IV) 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 apply.”

(III)
in clause (iv), as so redesignated—
(aa)
by striking “The Secretary, in consultation with the Secretary of Labor” and inserting “The ERISA agencies”; and
(bb)
by striking “clause (ii)” and inserting “clauses (ii) and (iii)”; and
(v)
by adding at the end the following:

“(E) Designation and coordination—The ERISA agencies shall—

“(i) designate one ERISA agency to receive the report described in subparagraph (A) on behalf of all the ERISA agencies, which shall each have full access to such report; and

“(ii) consult with each other and develop rules, regulations, practices, and forms, which to the extent appropriate for the efficient administration of the provisions of this paragraph are designed to replace duplication of effort, duplication of reporting, conflicting or overlapping requirements, and the burden of compliance with such provisions by plan administrators and plan sponsors.

“(F) ERISA agencies—In this paragraph, the term ERISA agencies means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation.”

(C)
Disclosures by plans regarding status— Section 4003 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1303) is amended—
(i)
in the section heading, by inserting “; Multiemployer Plan Information” after “Actions”; and
(ii)
by adding at the end the following:

“(g) The corporation is authorized to require such information as it deems necessary to investigate or review any facts, conditions, or other matters related to the actuarial certification and report by multiemployer plans under section 305(b)(3)(A), or to obtain such information as any duly authorized committee or subcommittee of the Congress may request with respect to such plans. The preceding sentence shall be considered a statute described in section 552(b)(3) of title 5, United States Code, and the information received pursuant to such sentence shall be exempt from disclosure under such section 552(b).”

(3)
Civil enforcement—
(A)
In general— Section 502(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132) is amended—
(i)
in paragraph (7)—
(I)
by striking “(7) The Secretary” and inserting “(7)(A) The Secretary”; and
(II)
by adding at the end the following:

“(B) The Secretary may assess a civil penalty against a plan administrator (or plan sponsor with respect to the notice of endangered or critical status) of up to $110 per day from the date of the plan administrator’s or sponsor’s failure or refusal to provide the relevant notices under section 101(f) or section 305(b)(3)(D) to a recipient other than the Secretary or the Pension Benefit Guaranty Corporation. For purposes of this paragraph, each violation with respect to any single recipient shall be treated as a separate violation.”

(ii)
by redesignating the second paragraph (10) (regarding coordinating enforcement under section 502(c) of such Act with enforcement under section 1144(c)(8) of the Social Security Act) as paragraph (12); and
(iii)
by inserting after paragraph (10) (regarding enforcement authority relating to use of genetic information) the following:

“(11)

“(A) The Secretary may assess a civil penalty against any plan sponsor of up to $1,100 per day from the date of the plan sponsor’s failure to file with the Secretary the notice required under section 305(b)(3)(D) or with the Pension Benefit Guaranty Corporation the notice required under section 101(f).

“(B) The Secretary may assess a civil penalty against any plan sponsor of up to $1,100 per day from the date of the plan sponsor’s failure to file with the ERISA agency designated in accordance with subparagraph (E) of section 305(b)(3) the report under subparagraph (A) of such section.”

(B)
Conforming amendment— Section 502(a)(6) of such Act is amended by striking “or (9)” and inserting “(9), (10), or (11)”.
(b)
Coordination with respect to multiemployer plans—
(1)
In general— Subtitle A of title III of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1201 et seq.) is amended by adding at the end the following:

“3005. Database of multiemployer plan information

“(a) In general—The Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall jointly establish an electronic database that contains the following information:

“(1) Each defined benefit plan funding notice submitted to the Pension Benefit Guaranty Corporation by a multiemployer plan under section 101(f).

“(2) Each report submitted by a multiemployer plan under section 305(b)(3)(A).

“(3) Each notice submitted to the Secretary of Labor and the Pension Benefit Guaranty Corporation by a multiemployer plan under section 305(b)(3)(D).

“(b) Shared access to database—Subject to the agreement described in subsection (c), the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall have full access to the data in the database established under subsection (a). To avoid unnecessary expense and duplication of functions among the agencies, the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation may make such arrangements and agreements for cooperation or mutual assistance with respect to access to and utilization of the data in the database.

“(c) Shared cost of database—The Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation shall execute a cost sharing agreement to equitably allocate the design, implementation, and maintenance costs of the database established under subsection (a).

“(d) Exemption—The information contained in the report described under subsection (a)(2) shall be exempt from disclosure under section 552(b) of title 5, United States Code. For purposes of such section 552 of title 5, United States Code, this subsection shall be considered a statute described in subsection (b)(3) of such section 552.”

(2)
Clerical amendment— The table of sections for subtitle A of title III of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new item:
(c)
Applicability— This section (and the amendments made by this section) shall apply to plan years beginning after the date that is 1 year after the date of enactment of this Act.

B Improvements to the pension insurance program

Sec. 311 Modifications of technical changes made by the Pension Protection Act of 2006 to termination liability

(a)
In general— Section 4062(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1362(c)) is amended by striking paragraphs (1) and (2) and inserting the following:

“(1) the aggregate unpaid minimum required contributions (within the meaning of section 4971(c)(4) of the Internal Revenue Code of 1986) of the plan (if any) for the plan year in which the termination date occurs and for all preceding plan years, including, for purposes of this paragraph, the amount of any increase in such aggregate unpaid minimum required contributions that would result if—

“(A) all pending applications for waivers of the minimum funding standard under section 302(c) of this Act and section 412(c) of such Code with respect to such plan were denied, and

“(B) no additional contributions (other than those already made by the termination date) were made for the plan year in which the termination date occurs or for any previous plan year, and

“(2) the unamortized portion (if any) of any amounts waived for the plan under section 302(c) of this Act and section 412(c) of such Code for—

“(A) the plan year in which the termination date occurs, and

“(B) all preceding plan years,”

(b)
Effective date— The amendments made by this section shall take effect as if included in section 107 of the Pension Protection Act of 2006 (Public Law 109–280; 120 Stat. 816).

Sec. 312 Payment of lump sum distributions in bankruptcy

(a)
Amendments to ERISA— The second sentence of section 206(g)(3)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(3)) is amended to read as follows: “The preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan (determined by not taking into account any adjustment of segment rates under section 303(h)(2)(C)(iv)) is not less than 100 percent.”.
(b)
Amendments to 1986 Code— The second sentence of section 436(d)(2) of the Internal Revenue Code of 1986 is amended to read as follows: “The preceding sentence shall not apply on or after the date on which the enrolled actuary of the plan certifies that the adjusted funding target attainment percentage of such plan (determined by not taking into account any adjustment of segment rates under section 430(h)(2)(C)(iv)) is not less than 100 percent.”.
(c)
Effective date— The amendments made by this section shall take effect as of July 6, 2012.

Sec. 313 Trusteeship clarifications

(a)
Appointment of trustees in plan termination instituted by PBGC—
(1)
In general— Subsections (a) and (b) of section 4002 (29 U.S.C. 1342) are amended to read as follows:

“(a) Authority To institute proceedings To terminate a plan

“(1) In general—The corporation may institute proceedings under this section to terminate a plan whenever it determines that the plan must be terminated in order to protect the interests of the participants or to avoid any unreasonable deterioration of the financial condition of the plan or any unreasonable increase in the liability of the corporation, as shown by one or more of the following conditions:

“(A) The plan has not met the minimum funding standard required under section 412 of the Internal Revenue Code of 1986, or has been notified by the Secretary of the Treasury that a notice of deficiency under section 6212 of such Code has been mailed with respect to the tax imposed under section 4971(a) of such Code.

“(B) The plan will be unable to pay benefits when due.

“(C) The reportable event described in section 4043(c)(7) has occurred.

“(D) The possible long-run loss of the corporation with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated.

“(2) Requirement—The corporation shall, as soon as practicable, institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan. Notwithstanding any other provision of this subchapter, the corporation shall, to the extent practicable, pool assets of terminated plans for purposes of administration, investment, payment of liabilities of all such terminated plans, and such other purposes as the corporation determines to be appropriate in the administration of this title.

“(b) Appointment of the Corporation To Administer Plan

“(1) In general—Whenever the corporation makes a determination under subsection (a) with respect to a plan or is required under subsection (a) to institute proceedings under this section, the corporation may, upon notice to the plan, apply to the appropriate United States district court to appoint the corporation as the person to administer the plan with respect to which the determination is made pending the issuance of a decree under subsection (c) ordering the termination of the plan. If, within 3 business days after the filing of an application under this subsection (or such other period as the court may order), the administrator of the plan consents to the appointment of the corporation to administer the plan, or fails to show why the corporation should not be so appointed, the court may grant the application and appoint the corporation to administer the plan in accordance with its terms until the corporation determines that the plan should be terminated or that termination is unnecessary.

“(2) Appointment—Notwithstanding any other provision of this title—

“(A) upon the petition of a plan administrator or the corporation, the appropriate United States district court may appoint the corporation to administer the plan in accordance with the provisions of this section if the interests of the plan participants would be better served by such appointment, and

“(B) upon the petition of the corporation, the appropriate United States district court shall appoint a trustee proposed by the corporation for a multiemployer plan which is in reorganization to which section 4041A(d) applies, unless such appointment would be adverse to the interests of the plan participants and beneficiaries in the aggregate.

“(3) Agreement to appointment—The corporation and plan administrator may agree to the appointment of the corporation to administer the plan without proceeding in accordance with the requirements of paragraphs (1) and (2).”

(2)
Conforming amendments—
(A)
Subsection (c) of such section 4042 is amended—
(i)
by striking “(c)(1)” and all that follows through the end of paragraph (1) and inserting the following:

“(c) Decree enforcing determination that plan must be terminated

“(1) Court decree

“(A) Application—If the corporation is required under subsection (a) to commence proceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator, has determined that the plan should be terminated, the corporation may, upon notice to the plan administrator, apply to the appropriate United States district court for a decree enforcing the corporation's determination that the plan be terminated.

“(B) Decree

“(i) In general—The district court shall issue the decree under subparagraph (A) unless such court finds, upon review of the administrative record of the corporation’s determination under subsection (a), that such determination was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.

“(ii) Effect of decree—Upon granting a decree for which the corporation has applied under this subsection, the court shall authorize the corporation if appointed under subsection (b) (or appoint the corporation if such corporation has not been appointed under such subsection and authorize the corporation) to terminate the plan in accordance with the provisions of this subtitle.

“(C) Waiver of application—If the corporation and the plan administrator agree that a plan should be terminated and agree to the appointment of the corporation to carry out the termination of the plan without proceeding in accordance with the requirements of this subsection (other than this subparagraph), the corporation shall have the power described in subsection (d)(1) and shall be subject to the duties described in subsection (d)(3) and any other duties imposed on the corporation under any other provision of law or by agreement between the corporation and the plan administrator.”

(ii)
in paragraph (2), by striking “(2) In the case of” and inserting “(2) Providing of information.—In the case of ”.
(B)
Subsection (d) of such section 4042 is amended—
(i)
in paragraph (1)(A)—
(I)
by striking “A trustee appointed under subsection (b)” and inserting “If the corporation is appointed to administer a plan under subsection (b), the corporation”;
(II)
in clause (ii), by striking “himself as trustee” and inserting “the corporation”;
(III)
in clause (iii), by striking “he” and inserting “the corporation”;
(IV)
in clause (iv), by striking “his appointment” and inserting “the appointment of the corporation”;
(V)
in clause (vi), by striking “he” and inserting “the corporation”;
(VI)
in clause (vii), by striking “trustee” and inserting “corporation”; and
(VII)
by striking the flush language after clause (vii) and inserting the following:
(ii)
in paragraph (1)(B)—
(I)
in the matter preceding clause (i), by striking “trustee” and inserting “corporation”;
(II)
by striking clauses (iii) and (v);
(III)
by redesignating clause (iv) as clause (iii); and
(IV)
by redesignating clauses (vi) through (viii) as clauses (iv) through (vi), respectively;
(iii)
in paragraph (2)—
(I)
in the matter preceding subparagraph (A) by striking “his appointment, the trustee” and inserting “the appointment of the corporation to administer the plan, the corporation”; and
(II)
in subparagraph (D) by striking “section”; and
(iv)
by striking paragraph (3) and inserting the following:

“(3) Except to the extent inconsistent with the provisions of this Act, the corporation, as appointed under this section, shall be subject to the same duties as those of a trustee under section 704 of title 11, United States Code, and shall be, with respect to the plan, a fiduciary within the meaning of section 3(21) (except to the extent that the provisions of this title are inconsistent with the requirements applicable under part 4 of subtitle B of title I). Notwithstanding any references in this section to administering a plan, the corporation shall not be considered a plan administrator within the meaning of section 3 and shall not be subject to the duties of a plan administrator under title I, including the duty to file reports on behalf of the plan.

“(4) When appointed under subsection (b) to administer a plan or granted a decree to terminate a plan under subsection (c), the corporation shall, within 30 days of the receipt of a written request from any participant or beneficiary of the plan (or as soon as practicable thereafter), furnish a copy of the plan document, summary plan description, and other instruments under which the plan is established or operated that relate to the participant’s or beneficiary’s benefit under the plan. The corporation may charge a reasonable fee to cover the cost of furnishing complete copies.”

(C)
Subsection (f) of such section 4042 is amended to read as follows:

“(f) Upon the filing of an application for the appointment of the corporation to administer a plan or the issuance of a decree under this section, the court to which an application is made shall have exclusive jurisdiction of the plan involved and property of the plan, wherever located, with the powers, to the extent consistent with the purposes of this section, of a court of the United States having jurisdiction over cases under chapter 11 of title 11, United States Code. Pending an adjudication under subsection (c), such court shall stay, and upon appointment of the corporation to carry out the termination of the plan under this section, such court shall continue the stay of any pending mortgage foreclosure, equity receivership, or other proceeding to reorganize, conserve, or liquidate the plan or the property of the plan and any other suit against any receiver, conservator, or trustee of the plan or property of the plan. Pending such adjudication and upon the appointment of the corporation to carry out the termination of the plan, the court may stay any proceeding to enforce a lien against property of the plan or any other suit against the plan.”

(D)
Such section 4042 is amended by striking subsection (h).
(b)
Other conforming and technical amendments—
(1)
Section 4002(h)(1) of such Act (29 U.S.C. 1302(h)(1)) is amended—
(A)
in the first sentence—
(i)
in subparagraph (A), by striking “the appointment of trustees in termination proceedings” and inserting “the appointment of the corporation to administer or carry out a termination of a plan under section 4042”; and
(ii)
in subparagraph (C), by striking “under a trustee” and inserting “under the corporation”; and
(B)
in the second sentence—
(i)
by striking “recommend persons for appointment as trustees in termination proceedings,”;
(ii)
by striking the comma after “funds”; and
(iii)
by striking “under a trustee” and inserting “under the corporation”.
(2)
Section 4003 of such Act (29 U.S.C. 1303) is amended—
(A)
in subsection (e)(6)(B), by amending clause (ii) to read as follows:

“(ii) If the corporation brings the action on behalf of a plan that the corporation was appointed to administer or terminate under section 4042, the applicable date specified in this subparagraph is the date on which the corporation was so appointed if such date is later than the date described in clause (i).”

(B)
in subsection (f)(4), by striking “the corporation in its capacity as a trustee under section 4042 or 4049” and inserting “the corporation in its capacity as a trustee under section 4049 or in its capacity in administering a plan pursuant to its appointment under section 4042(b) or carrying out the termination of a plan pursuant to its appointment under section 4042(c)”.
(3)
Section 4004(b) of such Act (29 U.S.C. 1304(b)) is amended—
(A)
in paragraph (1), by striking “pension plans trusteed by the corporation” and inserting “pension plans for which the corporation has been appointed under section 4042 to carry out their termination”; and
(B)
in paragraph (2), by striking “plans trusteed by the corporation” and inserting “plans for which the corporation has been appointed under section 4042 to carry out their termination”.
(4)
Section 4005(b)(1)(B) of such Act (29 U.S.C. 1305(b)(1)(B)) is amended by striking “a plan administered under section 4042 by a trustee” and inserting “a plan that the corporation has been appointed to terminate under section 4042”.
(5)
Section 4007(a) of such Act (29 U.S.C. 1307(a)) is amended by striking “a trustee” and inserting “the corporation”.
(6)
Section 4044 of such Act (29 U.S.C. 1344) is amended—
(A)
in subsection (c), by striking “the date a trustee is appointed under section 4042(b)” and inserting “the date the corporation is appointed under section 4042(b) to administer the plan”; and
(B)
in subsection (f)—
(i)
in paragraph (2)(C)(ii), by striking “the trustee appointed under section 4042(b) or (c)” and inserting “the corporation, for the account of the plan”; and
(ii)
in paragraph (3), by amending subparagraph (B) to read as follows:

“(B) the amount of any liability to the corporation under section 4062(b) or (c).”

(7)
Section 4045 of such Act (29 U.S.C. 1345) is amended by striking “trustee” each place such term appears in subsections (a) and (c) and inserting “corporation”.
(8)
(A)
Section 4046 of such Act (29 U.S.C. 1346) is repealed.
(B)
The table of sections for subtitle C of title IV of such Act is amended by striking the item relating to section 4046.
(9)
Section 4048 of such Act (29 U.S.C. 1348) is amended—
(A)
in subsection (a)(4), by striking “(or the trustee)”; and
(B)
in subsection (b)(2), by striking “(or the trustee appointed under section 4042(b)(2), if any)”.
(10)
Section 4050(a)(2) of such Act (29 U.S.C. 1350(a)(2)) is amended by striking “to the corporation as trustee, and shall be held with assets of terminated plans for which the corporation is trustee under section 4042” and inserting “to the corporation, as appointed under section 4042 to carry out the termination of a plan, and shall be held with assets of terminated plans that the corporation has been appointed to terminate under section 4042”.
(11)
Section 4062 of such Act (29 U.S.C. 1362), as amended by sections 303 and 321, is amended—
(A)
in subsection (a), by striking paragraphs (1) and (2) and inserting the following:

“(1) liability to the corporation, for the account of the corporation, to the extent provided in subsection (b), and

“(2) liability to the corporation, for the account of the plan, to the extent provided in subsection (c).”

(B)
in the heading of subsection (b), by inserting “for its own account” after “corporation”; and
(C)
in subsection (c)—
(i)
in the heading, by striking “section 4042 trustee” and inserting “the Corporation for the Account of the Plan”; and
(ii)
in the matter preceding paragraph (1), by striking “the trustee appointed under subsection (b) or (c) of section 4042” and inserting “the corporation, for the account of the plan, as appointed under section 4042 to carry out the termination of the plan”.

Sec. 314 Recordkeeping for terminating plans

(a)
Single-Employer plan benefits guaranteed— Section 4022 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by adding at the end the following:

“(i) Recordkeeping—The Corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the to determine benefits as of the termination date. Such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained.”

(b)
Allocation of assets— Section 4044 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1344) is amended by adding at the end the following:

“(g) Recordkeeping—The Corporation may issue regulations to require plan sponsors or plan administrators to maintain records necessary to enable the Corporation to determine benefits as of the termination date. Such regulations may require plan sponsors or plan administrators to certify to the corporation that such records are being maintained.”

Sec. 315 Termination date in bankruptcy

Sections 4022(g) and 4044(e) of the Employee Retirement Income Security Act of 1974, as added by section 404 of the Pension Protection Act of 2006 (Public Law 109–280; 120 Stat. 928), are repealed as of December 31, 2014, and shall not apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after such date.