Sec. 8. PBGC financial assistance
602 words·~3 min read·
/bill/115/s/2147/is/section-8A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 4261 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1431 ) is amended by adding at the end the following new subsection: The plan sponsor of a multiemployer plan— which is in critical and declining status (within the meaning of section 305(b)(6)), or which is insolvent but has not been terminated and is receiving assistance from the corporation (other than assistance under this subsection), and which is applying for a loan under section 4(a) of the Butch Lewis Act of 2017 may also apply to the corporation for financial assistance under this subsection, by jointly submitting such applications in accordance with section 4(d)(2) of such Act.
The application for financial assistance under this subsection shall demonstrate, based on projections by the plan actuary, that after the receipt of the anticipated loan amount under section 4(a) of such Act, the plan will still become (or remain) insolvent within the 30-year period beginning on the date of the loan. In the case of a plan described in paragraph (1)(A), the financial assistance provided pursuant to such application under this subsection shall be the amount (determined by the plan actuary and submitted on the application) equal to the sum of— the percentage of benefits of participants and beneficiaries of the plan in pay status at the time of the application, and the percentage of future benefits to which participants who have separated from service but are not yet in pay status are entitled, which, if such percentage were paid by the corporation in combination with the loan, would allow the plan to avoid the projected insolvency and be projected to have increasing assets over any 5-year period following the repayment of the loan.
Such amount shall not exceed the maximum guaranteed benefit with respect to all participants and beneficiaries of the plan under sections 4022A and 4022B. For this purpose, the maximum guaranteed benefit amount shall be determined by disregarding any loan available from the Pension Rehabilitation Administration and shall be determined as if the plan were insolvent on the date of the application. Further, the present value of the maximum guaranteed benefit amount with respect to such participants and beneficiaries may be calculated in the aggregate, rather than by reference to the benefit of each such participant or beneficiary.
In the case of a plan described in paragraph (1)(B), the financial assistance provided pursuant to such application under this subsection shall be the amount (determined by the plan actuary and submitted on the application) which, if such amount were paid by the corporation in combination with the loan and any other assistance being provided to the plan by the corporation at the time of the application, would enable the plan to emerge from insolvency. Subsections
(b)and
(c)shall apply to financial assistance under this subsection as if it were provided under subsection (a), except that the terms for repayment under subsection (b)(2) shall not require the financial assistance to be repaid before the date on which the loan under section 4(a) of the Butch Lewis Act of 2017 is repaid in full. The corporation may forgo repayment of the financial assistance provided under this subsection if necessary to avoid any suspension of the accrued benefits of participants. . There is appropriated to the Director of the Pension Benefit Guaranty Corporation such sums as may be necessary for each fiscal year to provide the financial assistance described in section 4261(d) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1431(d) ) (as added by this section) (including necessary administrative and operating expenses relating to such assistance).
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 8
PBGC financial assistance
Cites 1Cited by 0 across 0 sources