Sec. 213. Transition rules
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In the case of a multiemployer plan which is in endangered status as of the date of the enactment of this Act, and is on schedule as of such date to meet the applicable benchmarks in accordance with the plan's funding improvement plan— The plan sponsor may elect to remain in endangered status and to apply section 432 of the Internal Revenue Code of 1986 and section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ) as in effect before January 1, 2022, to the plan, but only if the plan continues to meet such applicable benchmarks.
If the plan sponsor does not make the election under paragraph (1)— section 432 of such Code and section 305 of such Act as in effect on January 1, 2022, shall apply to such plan as of the first day of the first plan year beginning after December 31, 2021, and section 432(d)(1)(B)(i)(II) of such Code and section 305(d)(1)(B)(i)(II) of such Act, as amended by sections 211(g) and 212(g), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters endangered status .
In the case of any plan with respect to which the plan sponsor makes the election under subparagraph
(A)but which fails to continue to meet the applicable benchmarks under the funding improvement plan, this subparagraph shall apply to such plan by substituting the plan year after the first plan year for which the plan fails to meet the applicable benchmarks for the first plan year beginning after December 31, 2021 . In the case of a multiemployer plan which enters endangered status after the date of the enactment of this Act and before January 1, 2022— section 432 of such Code and section 305 of such Act as in effect on January 1, 2022, shall apply to such plan as if already in effect, and section 432(d)(1)(B)(i)(II) of such Code and section 305(d)(1)(B)(i)(II) of such Act, as amended by sections 211(g) and 212(g), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters endangered status . In the case of a qualified critical multiemployer plan— The plan sponsor may elect to remain in critical or critical and declining status and to apply section 432 of the Internal Revenue Code of 1986 and section 305 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1085 ) as in effect before January 1, 2022, to the plan, but only if the plan continues to make scheduled progress under the plan's rehabilitation plan. If the plan sponsor does not make the election under paragraph (1)— section 432 of such Code and section 305 of such Act as in effect on January 1, 2022, shall apply to such plan as of the first day of the first plan year beginning after December 31, 2021, section 432(f)(1)(B)(i)(II) of such Code and section 305(f)(1)(B)(i)(II) of such Act, as amended by sections 211(h) and 212(h), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters critical status , and section 432(h)(1)(B)(i)(II) of such Code and section 305(h)(1)(B)(i)(II) of such Act, as amended by sections 211(d)(3) and 212(d)(3), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters declining status . In the case of any plan with respect to which the plan sponsor makes the election under subparagraph
(A)but which fails to continue to make scheduled progress under the rehabilitation plan, this subparagraph shall apply to such plan by substituting the plan year after the first plan year for which the plan fails to make scheduled progress under the rehabilitation plan for the first plan year beginning after December 31, 2021 . A plan with respect to which the plan sponsor makes the election under subparagraph
(A)shall be treated as described in clause
(iii)of section 4006(a)(10)(B) of the Employee Retirement Income Security Act of 1974 until such time as the plan emerges from critical and declining status pursuant to section 432 of such Code and section 305 of such Act as in effect before January 1, 2022. In the case of a multiemployer plan which enters critical or critical and declining status after the date of the enactment of this Act and before January 1, 2022— section 432 of such Code and section 305 of such Act as in effect on January 1, 2022, shall apply to such plan as if already in effect, section 432(f)(1)(B)(i)(II) of such Code and section 305(f)(1)(B)(i)(II) of such Act, as amended by sections 211(h) and 212(h), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters critical status , and section 432(h)(1)(B)(i)(II) of such Code and section 305(h)(1)(B)(i)(II) of such Act, as amended by sections 211(d)(3) and 212(d)(3), respectively, shall each apply to such plan by substituting the date of the enactment of the for Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2021 the first day of the plan year in which the plan enters declining status . For purposes of this subsection, the term qualified critical multiemployer plan means a multiemployer plan which is in critical or critical and declining status as of the date of the enactment of this Act, and is making scheduled progress under the plan's rehabilitation plan, but only if the rehabilitation plan (as in effect without regard to the amendments made by this Act) targets emergence from critical status not later than 3 years after the end of the rehabilitation period as in effect with respect to such plan on the date of the enactment of this Act. An election under subsection (a)(1)(A) or (b)(1)(A) shall be made— by notice to the Secretary of the Treasury and the Pension Benefit Guaranty Corporation, in such manner as the Secretary of the Treasury may prescribe, and not later than the due date for the notice of endangered status or critical status for the first plan year beginning after December 31, 2021. After making a timely election under paragraph (1)— the plan sponsor shall annually review and update (if necessary) the plan's funding improvement plan or rehabilitation plan, and the plan actuary shall certify annually whether the plan is making scheduled progress under the funding improvement plan or rehabilitation plan. Any term used in this section which is also used in section 432 of the Internal Revenue Code of 1986 or section 305 of the Employee Retirement Income Security Act of 1974 (before or after the amendments made by this Act) shall have the same meaning as when used in such sections.
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