Bills Sec. 308 — Improved multiemployer plan disclosu…

Section 101(f) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1021(f) ) is amended— in paragraph (2)(B)— by striking clause (v); by redesignating clauses

(vi)through

(x)as clauses

(v)through (ix), respectively; in clause (vi), as so redesignated— by striking

(I)in the case of and inserting in the case of ; by striking , or and inserting a comma; and by striking subclause (II); and by amending clause (vii), as so redesignated, to read as follows: 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 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, ; and in paragraph (4)(C)— by striking

(C)may be provided and inserting (C)(i) subject to clause (ii), may be provided ; and by striking the period and inserting the following: 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. . Section 305(b)(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(b)(3) ) is amended— in the paragraph heading, by striking and inserting by plan actuary ; and report by amending subparagraph

(A)to read as follows: 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— documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor— 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, 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, 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, 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 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 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, as of the last day of the prior plan year, a good faith determination of— the fair market value of the assets of the plan, the number of participants who are— retired or separated from service and are receiving benefits, retired or separated participants entitled to future benefits, and active participants under the plan, the total value of all benefits paid during the prior plan year, the total value of all contributions made to the plan during the prior plan year, and the total value of all investment gains or losses during the prior plan year, 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, 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, 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, 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, a good faith statement describing— 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, any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction, any significant reduction in the number of active plan participants and the reason for such reduction, and 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 such other information as may be required by the ERISA agencies by regulation. ; by striking subparagraph

(C)and inserting the following: The report required by subparagraph

(A)shall be filed electronically in accordance with regulations prescribed by the ERISA agencies. ; and in subparagraph (D)— by redesignating clauses

(ii)and

(iii)as clauses

(iii)and (iv), respectively; by inserting after clause

(i)the following: 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)— 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, 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, a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and 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. ; in clause (iv), as so redesignated— by striking The Secretary of the Treasury, in consultation with the Secretary and inserting The ERISA agencies ; and by striking clause

(ii)and inserting clauses

(ii)and

(iii); and by adding at the end the following: The ERISA agencies shall— 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 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. In this paragraph, the term ERISA agencies means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation. . Section 432(b)(3) of the Internal Revenue Code of 1986 is amended— in the paragraph heading, by striking and inserting by plan actuary ; and report by amending subparagraph

(A)to read as follows: 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— documentation from the plan actuary certifying to the ERISA agencies and to the plan sponsor— 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, 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, 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, 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 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 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, as of the last day of the prior plan year, a good faith determination of— the fair market value of the assets of the plan, the number of participants who are— retired or separated from service and are receiving benefits, retired or separated participants entitled to future benefits, and active participants under the plan, the total value of all benefits paid during the prior plan year, the total value of all contributions made to the plan during the prior plan year, and the total value of all investment gains or losses during the prior plan year, 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, 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, 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, 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, a good faith statement describing— 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, any material reduction in total contributions or withdrawal liability payments of any employers and the reason for such reduction, any significant reduction in the number of active plan participants and the reason for such reduction, and 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 such other information as may be required by the ERISA agencies by regulation. ; by striking subparagraph

(C)and inserting the following: The report required by subparagraph

(A)shall be filed electronically in accordance with regulations prescribed by the ERISA agencies. ; in subparagraph (D)— by redesignating clauses

(ii)and

(iii)as clauses

(iii)and (iv), respectively; by inserting after clause

(i)the following: 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)— 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, 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, a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments, and 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 in clause (iv), as so redesignated— by striking The Secretary, in consultation with the Secretary of Labor and inserting The ERISA agencies ; and by striking clause

(ii)and inserting clauses

(ii)and

(iii); and by adding at the end the following: The ERISA agencies shall— 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 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. In this paragraph, the term ERISA agencies means the Secretary of Labor, the Secretary of the Treasury, and the Pension Benefit Guaranty Corporation. . Section 4003 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1303 ) is amended— in the section heading, by inserting after ; Multiemployer Plan Information ; and Actions by adding at the end the following: 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). . Section 502(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1132 ) is amended— in paragraph (7)— by striking

(7)The Secretary and inserting (7)(A) The Secretary ; and by adding at the end the following: 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. ; 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 by inserting after paragraph

(10)(regarding enforcement authority relating to use of genetic information) the following: 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). 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. . Section 502(a)(6) of such Act is amended by striking or

(9)and inserting (9), (10), or

(11). 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: 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: Each defined benefit plan funding notice submitted to the Pension Benefit Guaranty Corporation by a multiemployer plan under section 101(f). Each report submitted by a multiemployer plan under section 305(b)(3)(A). Each notice submitted to the Secretary of Labor and the Pension Benefit Guaranty Corporation by a multiemployer plan under section 305(b)(3)(D). 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. 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). 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. . 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: 3005. Database of multiemployer plan information. . 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.

Sec. 308. Improved multiemployer plan disclosure