Sec. 301. Independent trustees
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Section 4042 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1342 ) is amended— in subsection (a)— in the matter preceding paragraph (1), by striking a plan and inserting a single-employer or multiemployer plan ; in paragraph (3)— by inserting with respect to a single-employer plan before the comma; and by striking or ; in paragraph (4), by striking the period at the end and inserting , or ; and by inserting after paragraph
(4)the following: in the case of a multiemployer plan— such plan is an eligible multiemployer plan as defined in section 4233A which fails to apply for a special partition under such section, or termination of the plan would protect the interests of participants and beneficiaries. ; in subsection (b)— in paragraph (2)— in subparagraph (A)— by inserting or remove after appoint , by inserting or removal after appointment , and by striking and at the end; by striking subparagraph
(B)and inserting the following: upon the petition of the corporation, the appropriate United States district court shall appoint a trustee proposed by the corporation for— any multiemployer plan which is in critical status or critical and declining status (as defined in paragraph
(3)or (7), respectively, of section 305(b)), if the court finds the appointment of the trustee would help prevent an abuse of the multiemployer insurance program or any unreasonable increase in the liability of the fund, and any multiemployer plan which has terminated under section 4041A(a), unless a party opposing appointment of a trustee shows that such appointment would be materially adverse to the interests of the plan participants and beneficiaries in the aggregate, and ; and by adding at the end the following: in the case of a special partition of a plan under section 4233A, the corporation may remove and appoint trustees subject to the provisions of paragraph (5). ; and by adding at the end the following: A trustee appointed to a multiemployer plan under paragraph (2)(B), (2)(C), or
(3)shall report plan activity to the corporation, in the form and manner provided for in the judicial or administrative order or agreement appointing the trustee. A trustee so appointed may remain a trustee engaged in the ongoing governance of a multiemployer plan whether or not the corporation initiates plan termination proceedings under subsection (c). Notwithstanding plan or trust documents to the contrary, in addition to any powers described in subsection (d), the order or agreement appointing a trustee under paragraph (2)(B), (2)(C), or
(3)may include authority for the corporation to monitor and oversee plan activity and to review and approve trustee decisions related to funding or financial activities of the plan. The corporation may remove any trustees of an original plan that received a special partition under section 4233A if the corporation determines that the actions of such trustees unreasonably increased the risk of loss to participants in the plan or to the corporation, and may appoint 1 or more new trustees as replacements. The corporation may appoint a special master, which may be an employee of the corporation, the duties of whom shall be disclosed to participants and contributing employers in accordance with regulations to be issued by the corporation, with respect to each original plan, as defined in section 4233A. Such special master shall be invited to every meeting of the plan’s board of trustees or any committees thereof; shall be furnished any requested actuarial or financial information by the plan or agents thereof; shall receive all creditable complaints or other information from participants, beneficiaries, employers, plan employees and contractors, and any other person regarding the plan's operations; and shall furnish the corporation with semiannual reports of the board’s activities, the plan’s performance, and the potential liabilities of the corporation with respect to the plan. The trustees shall provide the special master with not less than 30 days notice prior to taking any action that could increase the risk of loss to the corporation, and the special master shall report such potential action to the corporation within 5 days of receiving such notice from the trustees. ; in subsection (c)(1)— in the second sentence, by striking subsection
(b)and inserting subsection (b)(1) ; and in the third sentence, by inserting , including, in the case of a multiemployer plan, by requiring the withdrawal of employers before the period; and in subsection (d)(1)— in subparagraph (A), by striking subsection
(b)in the second sentence and inserting subsection (b)(1) ; and in subparagraph (B), by striking If and inserting If a trustee is appointed under paragraph
(2)or
(3)of subsection (b), or if .
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Sec. 301
Independent trustees
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