Sec. 212. Amendments to Employee Retirement Income Security Act of 1974

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Subsection

(a)of section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ) is amended— by striking a multiemployer plan in effect on July 16, 2006— and inserting any multiemployer plan— , by redesignating paragraphs (1), (2), and

(3)as paragraphs (2), (3), and (4), respectively, by inserting before paragraph (2), as so redesignated, the following new paragraph: the rules of subsection

(c)shall apply, , by striking subsection

(c)in paragraph (2)(A), as so redesignated, and inserting subsection

(d), by striking subsection

(d)in paragraph (2)(B), as so redesignated, and inserting subsection

(e), by striking subsection

(e)in paragraph (3)(A), as so redesignated, and inserting subsection

(f), by striking subsection

(f)in paragraph (3)(B), as so redesignated, and inserting subsection

(g), and by striking subsection (e)(9) in paragraph (4)(B), as so redesignated, and inserting subsection (f)(9) . Section 305 of such Act ( 29 U.S.C. 1085 ) is amended— by redesignating subsections (c), (d), (e), (f), (g), (h), (i), and

(j)as subsections (d), (e), (f), (g), (h), (i), (j), and (k), respectively, and by inserting after subsection

(b)the following new subsection: The plan sponsor of any multiemployer plan shall not adopt a plan amendment which increases plan liabilities (as determined as of the date of the adoption of the amendment) due to any increase in benefits, any change in the accrual rate of benefits, or any change in the rate at which benefits become nonforfeitable, unless— if the plan is in unrestricted status as of the adoption of such amendment, the plan actuary certifies in accordance with subsection (b)(4) that the increase in liabilities will not cause the plan to no longer be in unrestricted status, if the plan is in stable status as of the adoption of such amendment, the plan actuary certifies in accordance with subsection (b)(4) 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 amendment, if the plan is in endangered status as of the adoption of such amendment, the plan actuary certifies in accordance with subsection (b)(4) that any such increase or change in benefits will be paid from additional contributions not contemplated in any current funding improvement plan, or the increase or change in benefits is required by law or is a de minimis change. Unless required as a condition of qualification under part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 or to comply with other applicable law, in the case of a plan which is in critical or critical and declining status, no increase in benefits, change in the accrual rate of benefits, or change in the rate at which benefits become nonforfeitable which increases plan liabilities shall take effect while the plan is in such status, without regard to whether such increase or change would otherwise occur under the provisions of the plan, unless the increase in plan liabilities due to the change is de minimis. 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 participants, suspends contributions with respect to any period of service, or directly or indirectly excludes younger, probationary, or newly hired employees from participation in the plan, unless— the plan is in unrestricted status as of the adoption of such agreement and the plan actuary certifies in accordance with subsection (b)(4) that the reduction in contributions will not cause the plan to no longer be in unrestricted status, the reduction in contributions is accompanied by a reduction in future accruals for the affected participants, and the plan actuary certifies in accordance with subsection (b)(4) that the combined effect of the changes in contributions and benefits is not projected to reduce the funded percentage of the plan in any year, or subject to regulations issued by the Secretary of the Treasury, 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 plan. . Subsection

(b)of section 305 of such Act ( 29 U.S.C. 1085 ) is amended— by striking in the heading, endangered and critical by redesignating paragraphs (1), (2), (3), (4), (5), and

(6)as paragraphs (2), (3), (4), (5), (6), and (7), respectively, and by inserting before paragraph

(2)the following new paragraph: A multiemployer plan is in stable status for a plan year if, as determined by the plan actuary under paragraph (4), the plan is not in unrestricted status for the plan year, is not in endangered, critical, or critical and declining status for the plan year, and is not described in paragraph (6). A multiemployer plan is in unrestricted status for a plan year if, as determined by the plan actuary under paragraph (4)— the plan is not in endangered, critical, or critical and declining status for the plan year, the plan is not described in paragraph (6), and as of the beginning of the plan year— the plan's current liability funded percentage for such plan year is at least 70 percent and the plan's projected funded percentage as of the first day of the 15th succeeding plan year is at least 115 percent, or the plan's current liability funded percentage for such plan year is at least 80 percent. For purposes of this section, the term current liability funded percentage means the percentage equal to a fraction the numerator of which is the value of plan assets (as determined for purposes of section 304(c)(6)(A)(ii)(II)) and the denominator of which is the current liabilities of the plan (as defined in section 304(c)(6)(D)). . Subparagraph

(A)of paragraph

(4)(as redesignated by paragraph (3)) of section 305(b) of such Act ( 29 U.S.C. 1085(b) ) is amended by inserting whether or not the plan is in unrestricted or stable status for such plan year, in clause

(i)before whether or not the plan is in endangered status . Section 305(b)(3)(B) of such Act ( 29 U.S.C. 1085(b)(3)(B) ) is amended by redesignating the clause

(iv)relating to projections of critical and declining status, as added by section 201(a)(5) of the Consolidated and Further Continuing Appropriations Act, 2015, as clause (v), and by moving such clause to the position immediately after clause (iv). Paragraphs

(2)and

(3)of section 305(b) of such Act ( 29 U.S.C. 1085(b) ), as redesignated by paragraph (3), are each amended by striking paragraph

(3)and inserting paragraph

(4). Section 305(b)(2) of such Act ( 29 U.S.C. 1085(b)(2) ), as so redesignated and amended, is further amended by striking paragraph

(5)and inserting paragraph

(6). Section 305(b)(4) of such Act ( 29 U.S.C. 1085(b)(4) ), as so redesignated, is amended— by striking paragraph

(4)in subparagraph (B)(iv) thereof and inserting paragraph

(5), by striking subsection (e)(9) both places it appears in subparagraph (B)(v), as redesignated by subparagraph (A), and inserting subsection (f)(9) , by striking subsection (e)(3)(A)(ii) in subparagraph (B)(v), as so redesignated, and inserting subsection (f)(3)(A)(ii) , by striking subsection

(e)in subparagraph (B)(v), as so redesignated, and inserting subsection

(f), by striking paragraph

(4)each place it appears in subparagraphs (D)(i) and (D)(v) thereof and inserting paragraph

(5), by striking subsection (e)(8) in subparagraph (D)(iii)(I) thereof and inserting subsection (f)(8) , by striking paragraph

(5)in subparagraph (D)(iii) thereof and inserting paragraph

(6), and by striking

(iii)In the case of in subparagraph (D)(iii) thereof and inserting

(iii). Special rule .— Section 305(b)(5) of such Act ( 29 U.S.C. 1085(b)(5) ), as redesignated by paragraph (3), is amended— by striking paragraph

(2)and inserting paragraph

(3), by striking paragraph (3)(B)(iv) and inserting paragraph (4)(B)(iv) , by striking paragraph

(3)in subparagraph

(A)thereof and inserting paragraph

(4), by striking paragraph (3)(A) in subparagraph

(A)thereof and inserting paragraph (4)(A) , by striking paragraph

(2)in subparagraph

(B)thereof and inserting paragraph

(3), and by striking subsection (e)(4)(B) in subparagraph

(C)thereof and inserting subsection (f)(4)(B) . Section 305(b)(6)(A) of such Act ( 29 U.S.C. 1085(b)(6)(A) ), as so redesignated, is amended— by striking paragraph (3)(A) and inserting paragraph (4)(A) , by striking paragraph (1)(A) and inserting paragraph (2)(A) , and by striking paragraph (1)(B) and inserting paragraph (2)(B) . Section 305(b)(7) of such Act ( 29 U.S.C. 1085(b)(7) ), as so redesignated, is amended by striking paragraph

(2)and inserting paragraph

(3). Paragraphs (1)(A), (4)(A)(ii), (4)(C)(i), (4)(C)(ii), (4)(D), (5)(A)(i), (5)(B), and

(8)of subsection (d), and subsections (e)(2), (f)(1)(A), (f)(4)(B)(i), (f)(4)(B)(ii)(I), (f)(5), and (g)(3) of section 305 of such Act ( 29 U.S.C. 1085 ), as respectively redesignated by paragraph (2), are each amended by striking subsection (b)(3)(A) and inserting subsection (b)(4)(A) . Section 305(d)(3)(A)(i)(I) of such Act ( 29 U.S.C. 1085(d)(3)(A)(i)(I) ), as so redesignated, is amended by striking paragraph (b)(3) and inserting subsection (b)(4) . Section 305(d)(4)(D) of such Act ( 29 U.S.C. 1085(d)(4)(D) ), as so redesignated, is amended by striking subsection

(d)and inserting subsection

(e). Section 305(e) of such Act ( 29 U.S.C. 1085(e) ), as so redesignated, is amended to read as follows: A plan may not be amended after the date of the adoption of a funding improvement plan under subsection

(d)so as to be inconsistent with the funding improvement plan or the requirements of subsection (c). . Clauses (i)(I) and (ii)(I) of section 305(f)(4)(B) of such Act ( 29 U.S.C. 1085(f)(4)(B) ), as so redesignated, are each amended by striking subsection (b)(2) and inserting subsection (b)(3) . Subsections (f)(8)(A)(ii) and (g)(2)(A) of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated, are each amended by striking subsection (b)(3)(D) and inserting subsection (b)(4)(D) . Section 305(f)(9)(J) of such Act ( 29 U.S.C. 1085(f)(9)(J) ), as so redesignated, is amended— by striking subsection (b)(3) and inserting subsection (b)(4) , and by striking paragraphs

(1)and

(2)in clause

(i)thereof and inserting paragraphs

(2)and

(3). Subparagraphs

(A)and

(B)of section 305(g)(1) of such Act ( 29 U.S.C. 1085(g)(1) ), as so redesignated, are each amended by striking subsection

(e)and inserting subsection

(f). Paragraph (2)(A) of section 305(g) of such Act ( 29 U.S.C. 1085(g) ), as so redesignated, is amended by striking (b)(3)(D) and inserting (b)(4)(D) . Section 305(h) of such Act ( 29 U.S.C. 1085(h) ), as so redesignated, is amended— by striking subsection (e)(8) or

(f)in paragraph

(1)thereof and inserting subsection (f)(8) or

(g), by striking subsection (e)(9) in paragraph

(1)thereof and inserting subsection (f)(9) , by striking subsection (e)(7) in paragraph

(2)thereof and inserting subsection (f)(7) , and by striking rehabilitation plan and all that follows in paragraph (3)(B) thereof and inserting rehabilitation plan. The preceding sentence shall not apply to any increase in contribution requirements due to increased levels of work, employment, or periods for which compensation is provided, 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 liabilities. . Section 305(i) of such Act ( 29 U.S.C. 1085(i) ), as so redesignated, is amended— by striking subsection

(c)and inserting subsection

(d), and by striking subsection

(e)and inserting subsection

(f). Section 305(j)(2) of such Act ( 29 U.S.C. 1085(j)(2) ), as so redesignated, is amended by striking subsections

(c)and

(e)and inserting subsections

(d)and

(f). Section 101(f)(2)(B) of such Act ( 29 U.S.C. 1021(f)(2)(B) ) is amended— by striking 305(i) in clause (i)(II) and inserting 305(k) , and by striking 305(i)(8) in clause (ii)(II) and inserting 305(k)(8) . Section 103(f)(1)(B)(ii) of such Act ( 29 U.S.C. 1023(f)(1)(B)(ii) ) is amended by striking 305(i)(2) and inserting 305(k)(2) . Section 302(b)(3) of such Act ( 29 U.S.C. 1082 ) is amended by striking section 305(e) and inserting section 305(f) . Section 4231(e)(2)(A) of such Act ( 29 U.S.C. 1411(e)(2)(A) ) is amended by striking section 305(b)(4) and inserting 305(b)(7) . Section 4233 of such Act ( 29 U.S.C. 1413 ) is amended— by striking 305(e)(9) each place it appears in subsections (b)(2) and (e)(1)(A) and inserting 305(f)(9) , and by striking 305(e)(9)(E)(vi) in subsection (e)(2) and inserting 305(f)(9)(E)(vi) . Section 4245 of such Act ( 29 U.S.C. 1426 ), as amended by this Act, is amended— by striking 305(b)(2),, in subsection (c)(1), as redesignated by section 112, and inserting 305(b)(3), , by striking 305(b)(2) each place it appears in subsections (c)(2), (d)(1), and (d)(2), as so redesignated, and inserting 305(b)(3) , and by striking 305(e)(9) in subsection (f), as so redesignated, and inserting 305(f)(9) . The heading of section 305 of such Act ( 29 U.S.C. 1085 ) is amended by striking . in endangered status or critical status Section 305(h) of such Act ( 29 U.S.C. 1085(h) ), as redesignated by paragraph

(2)and as amended by paragraph (5), is further amended by striking paragraph

(4)and by inserting after paragraph

(3)the following new paragraph: In the case of increases in the contribution rate (or other increases in contribution requirements unless due to increased levels of work, employment, or periods for which compensation is provided) disregarded pursuant to paragraph (3), this subsection shall cease to apply as of the later of— the end of the first plan year following the plan year in which the plan is no longer in endangered or critical status, or 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 status. Notwithstanding subparagraph (A), once the plan emerges from endangered or critical status— increases in the contribution rate disregarded pursuant to paragraph

(3)shall continue to be disregarded in determining the highest contribution rate under section 4219(c) for plan years during which the plan was in endangered or critical status, and the highest contribution rate for purposes of such section shall be the greater of— the sum of— the employer's contribution rate as of the later of the last day of the last plan year ending before December 31, 2014, and the last day of the plan year for which the employer first had an obligation to contribute to the plan, and any contribution increases determined in accordance with this section after such later date and before the date the employer withdraws from the plan, or the highest contribution rate for any plan year after the plan year which includes the earlier of— 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 status, or 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 status. . The amendments made by this subsection shall take effect on the date of the enactment of this Act. Paragraph

(2)of section 305(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(b) ), as redesignated by subsection (a)(3), is amended to read as follows: A multiemployer plan is in endangered status for a plan year if, as determined by the plan actuary under paragraph (5), the plan is not in critical or declining status for the plan year and is not described in paragraph (7), and, as of the beginning of the plan year— the plan’s funded percentage for such plan year is less than 80 percent, the plan is projected to have an accumulated funding deficiency for any of the 9 succeeding plan years, taking into account any extension of amortization periods under section 304(d), or the plan's projected funded percentage as of the first day of the 15th succeeding plan year is less than 100 percent. . Paragraph

(3)of section 305(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(b) ), as redesignated by subsection (a)(3), is amended to read as follows: A multiemployer plan is in critical status for a plan year if, as determined by the plan actuary under paragraph (5), the plan is not in declining status for the plan year and, as of the beginning of the plan year— the plan's funded percentage is less than 65 percent, the plan has an accumulated funding deficiency for the plan year, or is projected to have such an accumulated funding deficiency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under section 304(d), or the plan's projected funded percentage as of the first day of the 15th succeeding plan year is less than 80 percent. Notwithstanding subparagraph (A), a multiemployer plan which is an original plan pursuant to section 4233A(d)(3) shall be treated as being in critical status for the period of 15 consecutive plan years beginning with the plan year that includes the date of the partition under section 4233A. . The following provisions of section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ) are each amended by striking critical and declining each place it appears and inserting declining : Subsection (a)(4) (as redesignated by subsection (a)(1)). Subparagraphs

(A)and (B)(i) of subsection (b)(1), as added by subsection (a)(3). Subsection (b)(4)(B)(v) (as redesignated by subsection (a)(3)). The heading of clause

(v)of subsection (b)(4)(B), as redesignated by subsection (a)(3). Paragraph (1)(B), and the heading of such paragraph (1)(B), of subsection (c), as added by subsection (a)(2). The heading of paragraph

(9)of subsection

(f)(as redesignated by subsection (a)(2)). Subparagraphs (A), (C), (G)(i), and

(J)of subsection (f)(9) (as so redesignated). Subsection (h)(1) (as so redesignated). Subsections (c), as amended by section 221, and (e)(2)(A), as amended by this section, of section 4231 of such Act ( 29 U.S.C. 1411(e)(2)(A) ) are each further amended by striking critical and declining status and inserting declining status . Section 4233(b)(1) of such Act ( 29 U.S.C. 1413(b)(1) ) is amended by striking critical and declining status and inserting declining status . Section 4245(f) of such Act ( 29 U.S.C. 1426 ), as amended by section 112 and subsection (a), is further amended by striking critical and declining status and inserting declining status . Subsection

(b)of section 305 of such Act ( 29 U.S.C. 1085 ) is amended— by striking paragraph (7), as redesignated by subsection (a)(3), by redesignating paragraphs (4), (5), and (6), as so redesignated, as paragraphs (5), (6), and (7), respectively, and by inserting after paragraph (3), as so redesignated, the following new paragraph: A multiemployer plan is in declining status for a plan year if— as determined by the plan actuary under paragraph (5), as of the beginning of the plan year the plan is projected to become insolvent within the plan year or any of the 29 succeeding plan years, the plan is otherwise in critical status for the plan year as determined by the plan actuary under paragraph (5), and the plan sponsor determines that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reasonably be expected to emerge from critical status within the next 30 plan years, or 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 15th succeeding plan year, unless the funded percentage for the plan year is 100 percent or greater and the projected funded percentage as of the first day of such 15th succeeding plan year is less than 100 percent. . Paragraph

(1)of section 305(b) of such Act ( 29 U.S.C. 1085 ), as added by subsection (a)(3), is amended— by striking paragraph

(4)each place it appears in subparagraphs

(A)and

(B)and inserting paragraph

(5), and by striking paragraph

(6)each place it appears in subparagraphs

(A)and

(B)and inserting paragraph

(7). Subsection

(c)of section 305 of such Act ( 29 U.S.C. 1085 ), as added by subsection (a)(2), is amended by striking (b)(4) each place it appears in paragraphs (1)(A)(i), (1)(A)(ii), (1)(A)(iii), (2)(A), and (2)(B) and inserting (b)(5) . Section 305(b)(5) of such Act ( 29 U.S.C. 1085(b)(5) ), as further redesignated by subparagraph

(A)and as amended by section 321 and subsection (a), is further amended— by striking paragraph

(5)in subparagraph (B)(iv) thereof and inserting paragraph

(6), by striking paragraph

(5)each place it appears in subparagraphs (D)(i) and (D)(vi) thereof and inserting paragraph

(6), and by striking paragraph

(6)in subparagraph (D)(iv) thereof and inserting paragraph

(7). Section 305(b)(6) of such Act ( 29 U.S.C. 1085(b)(6) ), as so further redesignated and amended, is further amended— by striking paragraph (4)(B)(iv) and inserting paragraph (5)(B)(iv) , by striking paragraph

(4)in subparagraph

(A)thereof and inserting paragraph

(5), and by striking paragraph (4)(A) in subparagraph

(A)thereof and inserting paragraph (5)(A) . Section 305(b)(7)(A) of such Act ( 29 U.S.C. 1085(b)(7)(A) ), as so further redesignated and amended, is further amended— by striking paragraph (4)(A) and inserting paragraph (5)(A) , and by striking either paragraph (2)(A) or paragraph (2)(B) and inserting any subparagraph of paragraph

(2). Section 305(b)(7)(B) of such Act ( 29 U.S.C. 1085(b)(7)(B) ), as so further redesignated, is amended by striking critical or endangered and inserting endangered, critical, or declining . Paragraphs (1)(A), (4)(A)(ii), (4)(C)(i), (4)(C)(ii), (4)(D), and

(8)of subsection (d), and subsections (f)(1)(A), (f)(4)(B)(i), (f)(4)(B)(ii)(I), (f)(5), and (g)(3) of section 305 of such Act ( 29 U.S.C. 1085 ), as redesignated and amended by subsection (a), are each further amended by striking subsection (b)(4)(A) and inserting subsection (b)(5)(A) . Section 305(d)(3)(A)(i)(I) of such Act ( 29 U.S.C. 1085(d)(3)(A)(i)(I) ), as so redesignated and amended, is further amended by striking subsection (b)(4) and inserting subsection (b)(5) . Subsections (f)(8)(A)(ii) and (g)(2)(A) of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, are each further amended by striking subsection (b)(4)(D) and inserting subsection (b)(5)(D) . Section 305(f)(9)(J) of such Act ( 29 U.S.C. 1085(f)(9)(J) ), as so redesignated and amended, is further amended by striking subsection (b)(4) and inserting subsection (b)(5) . Section 4231(e)(2)(A) of such Act ( 29 U.S.C. 1411(e)(2)(A) ), as amended by this section, is further amended by striking 305(b)(7) and inserting 305(b)(4) . Paragraph

(4)(as redesignated by subsection (a)(1) and amended by paragraph (1)) of section 305(a) of such Act ( 29 U.S.C. 1085(a) ) is amended— by redesignating subparagraph

(B)as subparagraph (D), and by striking subparagraph

(A)and inserting before subparagraph

(D)(as so redesignated) the following new subparagraphs: the plan sponsor shall adopt and implement a solvency plan in accordance with the requirements of subsection (h), any rehabilitation plan in place as of the date the plan enters declining status shall continue to apply throughout the solvency plan adoption period, the requirements of subsection

(i)and paragraphs

(6)and

(7)of subsection

(f)shall apply during the solvency plan adoption period and the solvency attainment period, and . Section 305 of such Act ( 29 U.S.C. 1085 ), as amended by this section, is further amended— by redesignating subsection (l), as added by title V of this Act, as subsection (n), and by further redesignating subsections (h), (i), (j), and (k), as redesignated by subsection (a)(2), as subsections (j), (k), (l), and (m), respectively, and by inserting after subsection (g), as redesignated by subsection (a)(2), the following new subsections: In any case in which a multiemployer plan is in declining status for a plan year, the plan sponsor, in accordance with this subsection— shall adopt a solvency plan not later than 240 days following the required date for the actuarial certification of declining status under subsection (b)(5)(A), and within 30 days after the adoption of the solvency plan shall provide to the bargaining parties 1 or more schedules showing revised benefit structures, revised contribution structures, or both, which, if adopted, may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph (3), including— one default proposal under which— all adjustable benefits in the form of early retirement subsidies (including early reduction factors which are not provided on an actuarially equivalent basis) under the plan are eliminated, and the future monthly benefit accrual rate under the plan is reduced to the equivalent of 1 percent of annual contributions (or, if lower, the current accrual rate) 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 4233A, and which may also include reduction or elimination of any other adjustable benefits under the plan, and 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 proposal. 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 (B)(i)(II). Paragraph

(1)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 year, except that the next update of the solvency plan shall fulfill the requirement of paragraph (1)(B)(i). For purposes of this section, such preceding plan year shall be the initial determination year with respect to the solvency plan to which it relates. For purposes of this section, a solvency plan is a plan which consists of the actions, including options or a range of options to be proposed to the bargaining parties, formulated, based on reasonably anticipated experience and reasonable actuarial assumptions, to enable the plan to delay or avoid the projected insolvency. For purposes of this section— Except as provided in subparagraph (B), the solvency attainment period for any solvency plan adopted pursuant to this subsection is the period— beginning on the first day of the first plan year of the multiemployer plan beginning after the earlier of— the second anniversary of the date of the adoption of the solvency plan, or 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 (b)(5)(A) and covering, as of such due date, at least 75 percent of the active participants in such plan, and ending on the date the plan either emerges from declining status or becomes insolvent. If the plan’s actuary certifies in accordance with subparagraph

(C)for a plan year in any solvency plan adoption period or solvency attainment period that the plan is no longer in declining status, the solvency plan adoption period or solvency attainment period, whichever is applicable, shall end as of the date of such certification. If the plan’s actuary certifies under subsection (b)(5)(A) for the plan year described in clause

(i)that the plan is in critical or endangered rather than declining status, the provisions of subsections

(d)and (e), or subsections

(f)and (g), whichever are applicable, shall be applied as if such plan year were an initial determination year, 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 plan, whichever is applicable, is adopted. A plan in declining status shall remain in such status until a plan year for which the plan actuary certifies, in accordance with subsection (b)(5)(A), that the plan is not described in one or more of the subparagraphs in subsection (b)(4) as of the beginning of the plan year. The plan sponsor shall annually update the solvency plan and shall file the update with the plan’s annual report under section 104. The plan sponsor shall annually update any schedule of contribution rates provided under this subsection to reflect the experience of the plan. 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 agreement. If— a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered declining status expires, and after receiving one or more schedules from the plan sponsor under paragraph (1)(B), 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 sponsor, the plan sponsor shall implement the schedule described in paragraph (1)(B)(i) beginning on the date specified in subparagraph (C). If— 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 (or imposed under subparagraph (A)) expires while the plan is still in declining status, and after receiving one or more updated schedules from the plan sponsor under paragraph (5)(B), 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 sponsor, then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning on the date specified in subparagraph (C). The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph

(A)or

(B)expires. For purposes of this section, the term solvency plan adoption period means the period beginning on the date of the certification under subsection (b)(5)(A) for the initial determination year and ending on the day before the first day of the solvency attainment period. A plan may not be amended after the date of the adoption of a solvency plan under subsection

(h)so as to be inconsistent with the solvency plan. A plan may not be amended after the date of the adoption of a solvency plan under subsection

(h)so as to increase benefits, including future benefit accruals, unless the increase is required by law or is a de minimis change. 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 plan. Effective on the date the notice of certification of the plan’s declining status for the initial determination year under subsection (b)(5)(D) is sent, and notwithstanding section 204(g), the plan shall not pay— any payment, in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of section 204(b)(1)(G)), to a participant or beneficiary whose annuity starting date (as defined in section 205(h)(2)) occurs after the date such notice is sent, any payment for the purchase of an irrevocable commitment from an insurer to pay benefits, or any other payment specified by the Secretary of the Treasury by regulations, unless it is a de minimis amount. Subparagraph

(A)shall not apply to a benefit which under section 203(e) 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 period. During the period beginning on the date of the certification under subsection (b)(5)(A) for the initial determination year and ending on the date of the adoption of a solvency plan— the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for— a reduction in the level of contributions for any participants, a suspension of contributions with respect to any period of service, or any new direct or indirect exclusion of younger or newly hired employees from plan participation, 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 plan, and no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, 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 1 of the Internal Revenue Code of 1986 or to comply with other applicable law. . Section 305 of such Act ( 29 U.S.C. 1085 ), as amended by this section, is further amended— by redesignating paragraph

(9)of subsection

(f)(as redesignated by subsection (a)(2)) as paragraph

(8)of subsection

(h)(as added by subparagraph (B)), and by moving such paragraph to the position immediately after paragraph

(7)of such subsection (h). Subsection (a)(4)(D) of section 305 of such Act ( 29 U.S.C. 1085 ), as redesignated and amended by the preceding provisions of this section, is further amended by striking subsection (f)(9) and inserting subsection (h)(8) . Paragraph

(5)of section 305(b) of such Act ( 29 U.S.C. 1085(b) ), as so redesignated and as amended by section 321 and the preceding provisions of this section, is further amended— by striking critical in subparagraph (A)(i)(I) and inserting critical or declining , by striking funding improvement or rehabilitation period in subparagraph (A)(i)(II) and inserting funding improvement, rehabilitation, or solvency attainment period , by striking funding improvement or rehabilitation plan in subparagraph (A)(i)(II) and inserting funding improvement, rehabilitation, or solvency plan , by striking endangered or critical in subparagraph (A)(i)(V)(bb) and inserting endangered, critical, or declining , by striking funding improvement plan or rehabilitation in subparagraph (A)(iv) and inserting funding improvement, rehabilitation, or solvency , by striking critical each place it appears in subparagraph (A)(vi) and inserting critical or declining , by striking rehabilitation period in subparagraph (A)(vi) and inserting rehabilitation or solvency attainment period , by striking as described in subsection (f)(9) in subparagraph (B)(v), by inserting if the plan is already in a rehabilitation period, and before if reasonable in subparagraph (B)(v)(I), by striking subsection (f)(9) in subparagraph (B)(v)(II) and inserting subsection (h)(8) , by striking endangered or critical both places it appears in subparagraph (D)(i) and inserting endangered, critical, or declining , by striking in the heading of subparagraph (D)(ii) and inserting endangered or critical , endangered, critical, or declining by striking endangered or critical in subparagraph (D)(ii) and inserting endangered, critical, or declining , by striking funding improvement or rehabilitation plan both places it appears in subclauses

(I)and

(II)of subparagraph (D)(ii) and inserting funding improvement, rehabilitation, or solvency plan , and by adding at the end of subparagraph

(D)the following new clause: In any case in which it is certified under subparagraph (A)(i) that a multiemployer plan will be in declining status for any of 5 succeeding plan years (but not for the current plan year), the plan sponsor shall, not later than 30 days after the date of the certification, provide notification of the projected declining status to the Pension Benefit Guaranty Corporation. . Subparagraph

(J)of section 305(h)(8) of such Act ( 29 U.S.C. 1085(h)(8) ), as so redesignated and amended, is further amended— by striking in the heading and inserting critical , and declining by striking shall not emerge from critical status under paragraph (4)(B), and inserting shall not emerge from declining status . Subsection

(j)of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, is further amended— by striking (f)(8) or

(g)in paragraph

(1)and inserting (f)(8), (g), or

(i), by striking subsection (f)(9) in paragraph

(1)and inserting subsection (h)(8) , by striking in the heading of paragraph

(3)and inserting funding improvement or rehabilitation plan , funding improvement, rehabilitation, or solvency by striking funding improvement plan or rehabilitation plan both places it appears in subparagraphs

(A)and

(B)of paragraph

(3)and inserting funding improvement, rehabilitation, or solvency plan , by striking in the heading of paragraph (4), as amended by subsection (a), and inserting endangered or critical , endangered, critical, or declining by striking endangered or critical each place it appears in paragraph (4), as so amended, and inserting endangered, critical, or declining , and by striking critical or endangered in paragraph

(4)and inserting endangered, critical, or declining . Subsection

(k)of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, is further amended— by striking or a rehabilitation plan under subsection

(f)and inserting , a rehabilitation plan under subsection (f), or a solvency plan under subsection

(h), by striking endangered status or a plan in critical status and inserting endangered, critical, or declining status , by striking has not agreed on a funding improvement plan or rehabilitation plan and inserting has not agreed on a funding improvement, rehabilitation, or solvency plan (whichever is applicable) , and by striking adoption of a funding improvement plan or rehabilitation plan and inserting adoption of a funding improvement, rehabilitation, or solvency plan . Subsection

(l)of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, is further amended— by striking endangered status or in critical status in paragraph

(1)and inserting endangered, critical, or declining status , by striking endangered or critical in paragraph

(1)and inserting endangered, critical, or declining , and by striking

(d)and

(f)in paragraph

(2)and inserting (d), (f), and

(h). Section 101(f)(2)(B) of such Act ( 29 U.S.C. 1021(f)(2)(B) ), as amended by this section, is amended— by striking 305(k) in clause (i)(II) and inserting 305(m) , and by striking 305(k)(8) in clause (ii)(II) and inserting 305(m)(8) . Section 101(k)(1)(K) of such Act ( 29 U.S.C. 1021(k)(1)(K) ) is amended— by striking critical or endangered and inserting endangered, critical, or declining , and by striking funding improvement or rehabilitation both places it appears and inserting funding improvement, rehabilitation, or solvency . Section 103(f)(1)(B)(ii) of such Act ( 29 U.S.C. 1023(f)(1)(B)(ii) ), as amended by this section, is amended by striking 305(k)(2) and inserting 305(m)(2) . Section 103(f)(2)(G) of such Act ( 29 U.S.C. 1023(f)(2)(G) ) is amended— by striking critical or endangered and inserting endangered, critical, or declining , and by striking funding improvement or rehabilitation and inserting funding improvement, rehabilitation, or solvency . Section 104(d)(1)(E) of such Act ( 29 U.S.C. 1024(d)(1)(E) ) is amended— by striking critical or endangered and inserting endangered, critical, or declining , and by striking funding improvement or rehabilitation and inserting funding improvement, rehabilitation, or solvency . Section 502(a)(10) of such Act ( 29 U.S.C. 1132(a)(10) ) is amended— by striking endangered or critical and inserting endangered, critical, or declining , and by striking funding improvement or rehabilitation each place it appears and inserting funding improvement, rehabilitation, or solvency . Section 502(c)(8) of such Act ( 29 U.S.C. 1132(c)(8) ) is amended— by striking funding improvement plan or rehabilitation in subparagraph

(A)and inserting funding improvement, rehabilitation, or solvency , by striking endangered or critical in subparagraph

(A)and inserting endangered, critical, or declining , by striking which is not in seriously endangered status in subparagraph (B), and by striking meet the applicable benchmarks in subparagraph

(B)and inserting emerge from endangered status . Section 4233 of such Act ( 29 U.S.C. 1413 ), as amended by this section, is further amended— by striking 305(f)(9) each place it appears in subsections (b)(2) and (e)(1)(A) and inserting 305(h)(8) , and by striking 305(f)(9)(E)(vi) in subsection (e)(2) and inserting 305(h)(8)(E)(vi) . Section 4233(m)(1) of such Act, as added by this Act, is amended by striking funding improvement or rehabilitation and inserting funding improvement, rehabilitation, or solvency . Section 4233A(h)(4)(C) of such Act, as added by this Act, is amended by striking rehabilitation plan and inserting rehabilitation or solvency plan . Section 4233A(m)(1) of such Act, as added by this Act, is amended by striking funding improvement or rehabilitation and inserting funding improvement, rehabilitation, or solvency . Section 4233A(o)(1) of such Act, as added by this Act, is amended by striking 305(k)(2) and inserting 305(m)(2) . Section 4233A(o)(12) of such Act, as added by this Act, is amended by striking funding improvement plan or rehabilitation and inserting funding improvement, rehabilitation, or solvency . Section 4245 of such Act ( 29 U.S.C. 1426 ), as amended by section 112 and this section, is further amended— by striking 305(b)(3) each place it appears in subsections (c)(1), (c)(2), (d)(1), and (d)(2) and inserting 305(b)(3), or a plan in declining status, as described in section 305(b)(4) , and by striking 305(f)(9) in subsection

(f)and inserting 305(h)(8) . Section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ), as amended by this section, is further amended— by further redesignating subsections

(m)and (n), as redesignated by subsection (d), as subsections

(n)and (o), respectively, by redesignating paragraph

(8)of subsection (f), as redesignated by subsection (a)(2), as subsection (m), and by moving such subsection to the position immediately after subsection (l). The heading of subsection

(m)of section 305 of such Act ( 29 U.S.C. 1085 ), as redesignated by paragraph (1), is amended to read as follows: . The following provisions of such subsection

(m)are amended as follows: Subparagraphs (A), (B), and

(C)are redesignated as paragraphs (1), (2), and (4), respectively, and moved 2 ems to the left. Clauses (i), (ii), (iii), and

(iv)of paragraph

(1)(as so redesignated) are redesignated as subparagraphs (A), (B), (C), and (D), respectively, and moved 2 ems to the left. Subclauses (I), (II), and

(III)of paragraph (1)(D) (as so redesignated) are redesignated as clauses (i), (ii), and (iii), respectively, and moved 2 ems to the left. Clauses (i), (ii), and

(iii)of paragraph

(4)(as so redesignated) are redesignated as subparagraphs (A), (B), and (C), respectively, and moved 2 ems to the left, and the flush sentence at the end of subparagraph

(C)(as so redesignated) is moved 2 ems to the left. Subclauses (I), (II), and

(III)of paragraph (4)(A) (as so redesignated) are redesignated as clauses (i), (ii), and (iii), respectively, and moved 2 ems to the left. Subclauses

(I)and

(II)of paragraph (4)(B) (as so redesignated) are redesignated as clauses

(i)and (ii), respectively, and moved 2 ems to the left. Subclauses (I), (II), and

(III)of paragraph (4)(C) (as so redesignated) are redesignated as clauses (i), (ii), and (iii), respectively, and moved 2 ems to the left. Paragraph (1)(A), as so redesignated, is amended by striking subparagraph

(C)and inserting paragraph

(4). Paragraph (1)(B), as so redesignated, is amended by striking clause (iv)(III) and inserting subparagraph (D)(iii) . Paragraph (1)(D), as so redesignated, is amended by striking this paragraph and inserting this subsection . Paragraph (2), as so redesignated, is amended— by striking subparagraph (A)(iv)(III) and inserting paragraph (1)(D)(iii) , and by striking this paragraph and inserting this subsection . Paragraph (4)(A), as so redesignated, is amended by striking subparagraph

(A)and inserting paragraph

(1). Paragraphs (4)(B) and (4)(C), as so redesignated, are each amended by striking clause

(i)each place it appears and inserting subparagraph

(A). The last sentence of paragraph (4)(C), as so redesignated, is amended— by striking subclause

(I)and inserting clause

(i), and by striking this subparagraph and inserting this paragraph . Subparagraph

(A)of section 305(m)(1) of such Act ( 29 U.S.C. 1085(m)(1) ), as redesignated and amended by this section, is further amended— by striking the plan sponsor shall and inserting the plan sponsor of a multiemployer plan in endangered, critical, or declining status may , and by striking paragraph (1)(B)(i) and inserting subsection (d)(1)(B), (f)(1)(B), or (h)(1)(B), whichever is applicable . Subparagraph

(B)of section 305(m)(1) of such Act ( 29 U.S.C. 1085(m)(1) ), as redesignated and amended by this section, is further amended by striking critical both places it appears and inserting endangered, critical, or declining . Subparagraph

(D)of section 305(m)(1) of such Act ( 29 U.S.C. 1085(m)(1) ), as redesignated by this section, is amended— by inserting , including early reduction factors which are not provided on an actuarially equivalent basis, after (i)) in clause (ii), as so redesignated, by striking and at the end of clause

(ii)(as so redesignated), by striking that would not be eligible and all that follows through the period in clause

(iii)(as so redesignated) and inserting which were adopted (or, if later, took effect) less than 120 months before the first day of the first plan year in which the plan was in endangered, critical, or declining status, , and by adding at the end the following new clauses: any one-time bonus payment or thirteenth check provision, and benefits granted for periods of service prior to participation in the plan. . Subparagraph

(B)of section 305(m)(1) of such Act ( 29 U.S.C. 1085 ), as redesignated and amended by this section, is further amended by striking subparagraph (D)(iii) and inserting clause (iii), (iv), or

(v)of subparagraph

(D). Paragraph

(2)of section 305(m) of such Act ( 29 U.S.C. 1085 ), as amended by paragraph (2)(B), is further amended by striking paragraph (1)(D)(iii) and inserting clause (iii), (iv), or

(v)of paragraph (1)(D) . Section 4233A(o)(1) of such Act, as added by this Act and as amended by this section, is further amended by striking 305(m)(2) and inserting 305(n)(2) . Subsection

(m)of section 305 of such Act ( 29 U.S.C. 1085 ), as redesignated and amended by this section, is further amended by inserting after paragraph

(2)the following new paragraph: The plan sponsor of a multiemployer plan in endangered, critical, or declining status may amend rules regarding the suspension of a participant's benefits upon a return to work after commencement of benefits, or the commencement of benefits after normal retirement age (including in the case of continued employment after normal retirement age). Any such changes shall apply only to future payments of benefits. . Clause

(iii)of section 305(b)(5)(D) of such Act ( 29 U.S.C. 1085(b)(5)(D) ), as redesignated and amended by this section, is further amended— by striking in the heading and inserting critical , endangered, critical, or declining by striking critical status both places it appears and inserting endangered, critical, or declining status , and by striking subsection (f)(8) in subclause

(I)and inserting subsection (m)(1)(D) . Subsection

(j)of section 305 of such Act ( 29 U.S.C. 1085 ), as amended by subsection (d), is further amended by striking (f)(8), (g), or

(i)and inserting (e), (g), (i), or

(m). Section 101(f)(2)(B) of such Act ( 29 U.S.C. 1021(f)(2)(B) ), as amended by this section, is amended— by striking 305(m) in clause (i)(II) and inserting 305(n) , and by striking 305(m)(8) in clause (ii)(II) and inserting 305(n)(8) . Section 103(f)(1)(B)(ii) of such Act ( 29 U.S.C. 1023(f)(1)(B)(ii) ), as amended by this section, is amended by striking 305(m)(2) and inserting 305(n)(2) . Paragraph

(6)of section 305(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(b) ), as redesignated and amended by this section, is further amended— by striking is not in critical status in subparagraph

(A)and inserting is not in critical or declining status , by striking but that is projected in subparagraph

(A)and inserting “but— that is projected , by striking 5 plan years may, not later than in subparagraph

(A)and inserting “5 plan years, or 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 effect, may, not later than , and by striking under paragraph

(3)in subparagraph

(B)and inserting under paragraph

(3)or for endangered status under paragraph

(2). Subsection

(b)of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, is further amended by adding at the end the following new paragraph: Notwithstanding paragraph (2)— the plan sponsor of a multiemployer plan that is not in endangered, critical, or declining status for a plan year but that is projected by the plan actuary, pursuant to the determination under paragraph (5), to be in endangered status in any of the 5 succeeding plan years, may, not later than 30 days after the date of the certification under paragraph (5)(A), elect to be in endangered status effective for the current plan year, the plan year in which the plan sponsor elects to be in endangered status under subparagraph

(A)shall be treated for purposes of this section as the first year in which the plan is in endangered status, regardless of the date on which the plan first satisfies the criteria for endangered status under paragraph (2), and a plan that is in endangered status under this paragraph shall not emerge from endangered status unless the plan's actuary certifies under paragraph (5)(A) that the plan is no longer in endangered status and is not in critical or declining status. . Paragraph

(1)of section 305(d) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(d) ), as redesignated and amended by this section, is further amended— by striking the last sentence, and in subparagraph (B), by striking funding improvement plan— and all that follows and inserting “funding improvement plan, shall provide to the bargaining parties 1 or more schedules showing revised benefit structures, revised contribution structures, or both, which, if adopted, may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph (3), including— one default proposal under which— all adjustable benefits in the form of early retirement subsidies (including early reduction factors which are not provided on an actuarially equivalent basis) under the plan are eliminated, and the future monthly benefit accrual rate under the plan is reduced to the equivalent of 1 percent of annual contributions (or, if lower, the accrual rate as of the date of the enactment of the Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2020 ) based on the contribution rate in effect as of the first day of the plan year in which the plan enters endangered status, and which may also include reduction or elimination of any other adjustable benefits under the plan, and 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 proposal. . Paragraph

(3)of section 305(d) of such Act ( 29 U.S.C. 1085(d) ), as so redesignated and amended, is further amended— by striking For purposes of this section— and all that follows through which consists of in subparagraph

(A)and inserting For purposes of this section, a funding improvement plan is a plan which consists of , and by striking formulated to provide and all that follows and inserting “formulated, based on reasonably anticipated experience and reasonable actuarial assumptions, to— enable the plan to emerge from endangered status by the end of the funding improvement period, and avoid any accumulated funding deficiencies during the funding improvement period (taking into account any extension of amortization periods under section 304(d)). . Paragraph

(4)of section 305(d) of such Act ( 29 U.S.C. 1085(d)(4) ), as so redesignated and amended, is further amended by striking subparagraph

(B)and inserting after subparagraph

(A)the following new subparagraph: If the plan's actuary determines necessary based on adverse plan experience, the plan sponsor may provide for a new 10-year period as of the first day of any plan year in the original funding improvement period, 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 period. A plan sponsor may provide a new 10-year period under clause

(i)not more than 1 time in any 20-consecutive-year period, unless the plan sponsor submits to the Secretary an application for an additional new period. Such application shall include a certification that the plan is projected to emerge from endangered status in the proposed new 10-year period and a description of key assumptions, to be specified in regulations promulgated by the Secretary in consultation with the Pension Benefit Guaranty Corporation. . Subparagraph

(C)of section 305(d)(4) of such Act ( 29 U.S.C. 1085(d)(4) ), as so redesignated and amended, is further amended— by striking critical status both places it appears in clauses

(i)and

(ii)and inserting critical or declining status , by striking rehabilitation period in clause

(ii)and inserting rehabilitation or solvency attainment period , and by striking in the heading of clause

(ii)and inserting critical status . critical or declining status Subsection

(d)of section 305 of such Act ( 29 U.S.C. 1085 ), as so redesignated and amended, is further amended by striking paragraph

(5)and by redesignating paragraphs (6), (7), and

(8)as paragraphs (5), (6), and (7), respectively. Paragraph

(6)of section 305(d) of such Act ( 29 U.S.C. 1085(d) ), as so redesignated, is amended— by striking (1)(B)(i)(I) in subparagraph

(A)and inserting (1)(B)(i) , and by striking paragraph (6)(B) in subparagraph (B)(ii) and inserting paragraph (5)(B) . Paragraph

(2)of section 305(d) of such Act ( 29 U.S.C. 1085(d) ), as so redesignated, is amended by inserting , except that the next update of the funding improvement plan shall fulfill the requirement of paragraph (1)(B)(i) after for a preceding plan year . Paragraph

(1)of section 305(f) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085(f) ), as redesignated and amended by this section, is further amended— by striking the last 2 sentences, and in subparagraph (B), by striking rehabilitation plan— and all that follows and inserting “rehabilitation plan, shall provide to the bargaining parties 1 or more schedules showing revised benefit structures, revised contribution structures, or both, which, if adopted, may reasonably be expected to enable the multiemployer plan to meet the requirements of paragraph (3), including— one default proposal under which— all adjustable benefits in the form of early retirement subsidies (including early reduction factors which are not provided on an actuarially equivalent basis) under the plan are eliminated, and the future monthly benefit accrual rate under the plan is reduced to the equivalent of 1 percent of annual contributions (or, if lower, the accrual rate as of the date of the enactment of the Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2020 ) based on the contribution rate in effect as of the first day of the plan year in which the plan enters critical status, and which may also include reduction or elimination of any other adjustable benefits under the plan, and 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 proposal. In the case of a plan adopting a rehabilitation plan described in paragraph (3)(A)(ii), 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 (B)(i)(II). . Subparagraph

(A)of section 305(f)(3) of such Act ( 29 U.S.C. 1085(f)(3) ), as so redesignated, is amended— by striking and may include and all that follows through such actions in clause (i), by inserting , while delaying insolvency for as long as possible and maximizing the income of the plan, including income after insolvency before the period in clause (ii), and by striking (1)(B)(i) in the last sentence and inserting (1)(B) . Clause

(i)of section 305(f)(3)(C) of such Act ( 29 U.S.C. 1085(f)(3)(C) ), as so redesignated, is amended— by striking (1)(B)(i) in subclause

(II)and inserting (1)(B) , and by striking the last sentence of paragraph

(1)and inserting paragraph (1)(B)(i) . Subparagraph

(A)of section 305(f)(4) of such Act ( 29 U.S.C. 1085(f)(4) ), as so redesignated and amended, is further amended— by striking The rehabilitation period and inserting Except as otherwise provided in this subparagraph, the rehabilitation period , and by adding at the end the following: If, upon exhaustion of all reasonable measures, the plan is not reasonably expected to emerge from critical status by the end of such 10-year period, the rehabilitation period shall be extended to take into account the projected date of emergence from critical status (if the rehabilitation plan remained in effect until such date) or the projected date of insolvency (if applicable) (unless the plan enters declining status). . Subparagraph

(B)of section 305(f)(4) of such Act ( 29 U.S.C. 1085(f)(4) ), as so redesignated and amended, is further amended— by inserting and is not in declining status, after the comma in clause (i)(I), by striking subclause

(III)of clause

(i)and inserting the following: the plan's projected funded percentage as of the first day of the 15th succeeding plan year is at least 100 percent and is projected to increase after such date. , by striking that— and all that follows through regardless of whether in clause (ii)(I) and inserting that the plan meets the requirements of subclauses

(II)and

(III)of clause (i), regardless of whether , and by striking unless— and all that follows in clause (ii)(II) and inserting unless, as of such plan year, the plan fails to meet the requirements of subclause

(II)or

(III)of clause (i). . Subparagraph

(B)of section 305(g)(1) of such Act ( 29 U.S.C. 1085(g)(1) ), as so redesignated and amended, 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 1 of the Internal Revenue Code of 1986 or to comply with other applicable law, or the amendment provides for only a de minimis increase in the liabilities of the plan. Paragraph

(6)of section 305(f) of such Act ( 29 U.S.C. 1085(f) ), as so redesignated, is amended by striking the last sentence of paragraph

(1)and inserting paragraph (1)(B)(i) . Paragraph

(2)of section 305(f) of such Act ( 29 U.S.C. 1085(f) ), as so redesignated, is amended by inserting , except that the next update of the rehabilitation plan shall fulfill the requirement of paragraph (1)(B)(i) after for a preceding plan year . Subsection

(n)of section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ), as redesignated by subsections (a), (d), and (e), is amended— by striking in the heading and inserting method , and method and assumptions by adding at the end the following new paragraph: The actuarial assumptions relied upon for purposes of this section by a plan actuary shall be individually reasonable and, in the aggregate, shall be reasonable and (with the exception of assumptions regarding future contributions) represent the actuary’s best estimate of future plan experience, within limitations prescribed by the Secretary of the Treasury. 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 aggregate. The investment return assumption for projecting plan assets may differ from the actuarial valuation interest rate. In selecting the investment return assumption for projecting plan assets, the plan actuary shall estimate the expected return of the plan’s investments as currently invested and as expected to be invested in the future, consistent with the plan’s adopted investment policy, if applicable. It is reasonable for an actuary to expect that the plan’s investment decisions will consider risk, expected returns over time, and expected future benefit payments. The investment return assumption shall not exceed the interest rate used to determine past service liability under section 431(b)(6). The plan actuary shall develop assumptions for the projection of future contributions, including assumptions regarding industry activity among contributing employers and contribution rates, based on information provided by the plan sponsor, which must act reasonably and in good faith. The plan actuary shall certify the reasonableness of all assumptions. Any projection of activity in the industry or industries covered by the plan, including future covered employment and contribution levels, shall be based on information provided by the plan sponsor acting reasonably and in good faith. If recent experience of the plan has been declining contribution base units, the plan actuary may assume future contribution base units will continue to decline at the same annualized trend as over the 5 immediately preceding plan years, unless the actuary determines that there have been significant changes that would make such assumption unreasonable. If recent experience of the plan has been increasing, or neither increasing nor decreasing, contribution base units, the plan actuary may assume future contribution base units will remain unchanged indefinitely, unless the actuary determines that there have been significant changes that would make such assumption unreasonable. Projections of contributions shall be based on the contribution rates consistent with the terms of collective bargaining and participation agreements currently in effect. If reasonable and applicable, the plan actuary may assume future increases in contribution rates consistent with the adopted funding improvement plan, rehabilitation plan, or solvency plan. 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 time, considering relevant factors such as projected industry activity, the financial strength of participating employers, market competition, and the scheduled contribution rate to the plan relative to the overall wage package. All schedules under any funding improvement plan, rehabilitation plan, or solvency plan must be developed based on the same set of actuarial assumptions unless it would be unreasonable to do so, taking into account the anticipated impact of the schedules on participant behavior and employer participation. . Subparagraph

(B)of section 305(b)(5) of such Act ( 29 U.S.C. 1085(b)(5) ), as redesignated and amended by this section, is further amended by adding at the end the following new clause: The plan actuary shall attach to the certification required under subparagraph (A)— documentation supporting the certification of status under subparagraph (A)(i), including projections of the funding standard account, funded percentage, and solvency of the plan, a clear description of the key assumptions used in performing the projections, including investment returns, contribution base units, and contribution rates, a 5-year history of contributions, including contribution base units, average contribution rates, and withdrawal liability payments, and a comparison of such contribution base units, rates, and payments to projections made by the plan, and an alternate projection of the funding standard account, funded percentage, and solvency, based on the following assumptions: Annual future investment returns on plan assets equal the actuarial interest rate assumption minus 1 percent. Future contribution base units projected using a trend equal to the lesser of— the annualized trend of actual contribution base units over the 5 preceding plan years, and no change in future contribution base units. No increases in future contribution rates beyond those consistent with the collective bargaining agreements and participation agreements in effect for the plan year. The withdrawal from the plan of the employer which has contributed the greatest total amount of contributions over the 5 preceding plan years, if such employer has contributed at least 10 percent of the total contributions to the plan over such 5 plan years and such employer has a below investment grade credit rating (but only if obtaining the credit rating of such employer is not an undue burden). If such credit rating cannot be obtained without undue burden, the withdrawal of the employer which has contributed the greatest total amount of contributions over the 5 preceding plan years, if such employer has contributed at least 10 percent of the total contributions to the plan over such 5 plan years without regard to collection of any withdrawal liability. If no employer has contributed at least 10 percent of the total contributions to the plan over the 5 preceding plan years, the withdrawal of the employer which contributed the greatest total amount of contributions for the current plan year, without regard to collection of any withdrawal liability, unless the employer contributed less than 1 percent of the total contributions to the plan for such plan year. Other assumptions consistent with the projection based on the actuary’s best estimate assumptions. . Section 305(b)(5)(B)(i) of such Act ( 29 U.S.C. 1085(b)(5)(B)(i) ), as redesignated by this section, is amended by striking assumptions and inserting assumptions meeting the requirements of subsection (n)(11) . Section 305(b)(5)(A)(vi) of such Act ( 29 U.S.C. 1085(b)(5)(A)(vi) , as amended by this section and section 321, is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection (n)(11) . Paragraph

(3)of section 305(d) of such Act ( 29 U.S.C. 1085(d) ), as amended by subsection (g), is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection (n)(11) . Clause

(i)of section 305(f)(3)(A) of such Act ( 29 U.S.C. 1085(f)(3)(A) ), as amended by subsection (h), is further amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection (n)(11) . Section 305(h)(3) of such Act ( 29 U.S.C. 1085(h)(3) ), as added by subsection (d), is amended by striking reasonable actuarial assumptions and inserting assumptions meeting the requirements of subsection (n)(11) . Paragraph

(10)of section 4006(a) of such Act ( 29 U.S.C. 1306(a) ), as added by this Act, is amended— by striking 305(b)(7) in subparagraph (B)(iii) thereof and inserting 305(b)(4) , by striking critical and declining in subparagraph (B)(iii) thereof and inserting declining , and by striking 305(f)(9) in subparagraph

(C)and inserting 305(h)(8) . Sections 203(a)(3)(E)(ii), 204(b)(1)(B)(i), 204(b)(1)(H)(v), and 204(g)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1053(a)(3)(E)(ii) , 1054(b)(1)(B)(i), 1054(b)(1)(H)(v), and 1054(g)(1)), as amended by title V, are each further amended by striking 305(f) each place it appears and inserting 305(h)(8) . Sections 304(b)(10), 805(d)(2)(D), and 805(d)(4) of such Act, as added by title V, are each amended by striking endangered or critical and inserting endangered, critical, or declining . Section 801(b)(1) of such Act, as so added, is amended by striking endangered or critical both places it appears and inserting endangered, critical, or declining . Sections 801(b)(1), 801(b)(5)(B), 805(b)(1)(A), and 805(e)(3) of such Act, as so added, are each amended by striking 305(b)(4) and inserting 305(b)(5) . Sections 801(b)(5)(B) and 805(b)(1)(A) of such Act, as so added, are each amended by striking endangered or critical and inserting endangered, critical, or declining . Section 802(b)(1) of such Act, as so added, is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph

(C)and inserting ; and , and by adding at the end the following new subparagraph: consistent with the principles of subparagraphs (B), (C), and

(D)of section 305(n)(11). . Sections 802(b)(5) and 805(d)(2)(A) of such Act, as so added, are each amended by striking 305(b)(4)(B) and inserting 305(b)(5)(B) . Section 803(a)(2)(D) of such Act, as so added, is amended by striking 305(f)(9)(D)(vi) and inserting 305(h)(8)(D)(vi) . Section 803(a)(3) of such Act, as so added, is amended by striking 305(f)(8) and inserting 305(m)(1)(D) . Section 805(d)(2)(D) of such Act, as so added and amended, is further amended by striking funding improvement or rehabilitation plan and inserting funding improvement, rehabilitation, or solvency plan . Section 502(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1132(c) ) is amended— in paragraph (7)(B), as added by section 322, by striking 305(b)(4)(D) and inserting 305(b)(5)(D) , and in paragraph (14), as so added and as redesignated by section 501— by striking 305(b)(4)(D) in subparagraph

(A)and inserting 305(b)(5)(D) , and by striking 305(b)(4) in subparagraph

(B)and inserting 305(b)(5) . Section 4003(g) of such Act ( 29 U.S.C. 1303(g) ), as added by section 321, is amended by striking section 305(b)(4)(A) and inserting section 305(b)(5)(A) . Section 4042(b)(2)(B)(i) of such Act ( 29 U.S.C. 1342(b)(2)(B) ), as added by section 301, is amended— by striking critical and declining and inserting declining , and by striking

(7)and inserting

(4). Except as otherwise provided in subsection (a)(7), the amendments made by this section shall apply to plan years beginning after December 31, 2020. No requirement of section 939 or 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act (124 Stat. 1887; 15 U.S.C. 78o–7 note) shall apply with respect to the amendment made by subsection (i)(2).

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