Sec. 113. Termination of multiemployer plans
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Section 4041A of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1341a ) is amended by adding at the end the following: If a court orders the termination of a multiemployer plan under section 4042— the corporation shall determine whether the termination of such plan shall be carried out in accordance with paragraph
(1)or
(2)of subsection
(a)(and such termination shall be treated as described in whichever of such paragraphs is applicable under the determination), and the plan shall take such actions as the corporation determines necessary to implement the corporation's determination under paragraph
(1)by such date as the corporation specifies in such determination. . Section 4041A(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1341a(a) ) is amended— in paragraph (2), by striking or at the end; in paragraph (3)— by striking section 4203(b)(1) and inserting section 4021(b)(1) ; and by striking the period and inserting ; or ; and by adding at the end the following: becoming insolvent (within the meaning of section 4245(b)(1)). . Section 4041A(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1341a(b) ) is amended by adding at the end the following new paragraphs: Except as provided in paragraph (4), the date on which a plan terminates under paragraph
(4)of subsection
(a)is the first day of the seventh full plan month of the plan's first insolvency year under section 4245(b)(3). In the case of a multiemployer plan which is an insolvent plan on the date of enactment of this paragraph— paragraph
(4)of subsection
(a)shall apply to such plan unless such plan applies for, and receives, a special partition under section 4233A, and the date on which plan terminates shall be determined under subparagraph (B). In the case of a plan described in subparagraph (A), the date on which a plan terminates under paragraph
(4)of subsection
(a)is— if the plan is not eligible for a special partition under section 4233A, the first day of the seventh full plan month following such date of enactment, except that such plan may, notwithstanding the amendment required to be adopted by the plan under section 4245(a), continue to provide service credit solely for purposes of vesting under the plan until such time as the plan’s available resources are not sufficient to pay benefits under the plan, and if the plan applies for such special partition but the corporation does not approve it, the first day of the seventh full plan month following the final determination of the corporation disallowing such special partition. . Section 4245(a) of such Act ( 29 U.S.C. 1426(a) ), as amended by this Act, is amended by adding at the end the following: The insolvent multiemployer plan shall also, at the time of becoming insolvent, adopt an amendment which provides that participants will receive no credit for any purpose under the plan for service with any employer after the date specified in 4041A(b)(3) or (4), whichever is applicable. . Section 4041A of such Act of 1974 ( 29 U.S.C. 1341a ) is amended— in subsection (c)— in the matter preceding paragraph (1)— by striking Except and inserting Consistent with the provisions of section 4281, and except ; and by striking paragraph
(2)and inserting paragraph (1), (2), or
(4); in paragraph (1), by striking and at the end; by redesignating paragraph
(2)as paragraph (3); and by inserting after paragraph
(1)the following: suspend the payment of benefits in excess of the level of basic benefits, and ; by striking subsection
(d)and redesignating subsections
(e)and
(f)as subsections
(d)and (e), respectively; and in subsection (d), as so redesignated— by striking paragraph
(1)or
(3)and inserting paragraph (1), (3), or
(4); by striking termination date, unless and inserting termination date and the total contribution amount shall be not less than the average amount of the highest 3 contributions in the previous 10 years, unless ; and by adding at the end the following new sentence: Any liability under section 4201 due by an employer that withdraws from the plan after the plan termination date shall be offset by the contributions made under this subsection subsequent to the plan termination. . Section 4041A of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1341a ), as amended by this section, is further amended by adding at the end the following: Notwithstanding any other provision of this title, the corporation is authorized to pool assets of terminated or insolvent multiemployer plans with fewer than 5,000 participants or to consolidate such plans by merger, for purposes of administration, investment, payment of liabilities of all such plans, and such other purposes as it determinates to be appropriate in the administration of this title, if it determines that such action would reduce administrative expenses or avoid an increased risk of loss. The corporation may exercise this consolidation authority by administrative action without petitioning a court for an order to replace the plan’s governing board of trustees, including receivership by the corporation, or to consolidate or merge any plans. . The amendments made by this section shall take effect on the date of enactment of this section, except that the amendments made by subsection
(b)shall also apply to multiemployer plans that are insolvent on such date.
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