Sec. 503. Treatment of composite plans under title IV
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Section 4001(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1301(a) ) is amended by striking the period at the end of paragraph
(21)and inserting a semicolon and by adding at the end the following: The term composite plan has the meaning set forth in section 801. . Section 4006(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1306(a) ) is amended by adding at the end the following: The composite plan component of a multiemployer plan shall be disregarded in determining the premiums due under this section from the multiemployer plan. . Section 4021(b)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1321(b)(1) ) is amended by striking Act and inserting Act, or a composite plan, as defined in paragraph
(43)of section 3 of this Act . Section 4201 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1381 ) is amended by adding at the end the following: Contributions by an employer to the composite plan component of a multiemployer plan shall not be taken into account for any purpose under this title. . Section 4201 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1381 ) is further amended by adding at the end the following: Contributions by an employer to a multiemployer plan described in the except clause of section 3(35) of this Act pursuant to a collective bargaining agreement that specifically designates that such contributions shall be allocated to the separate defined contribution accounts of participants under the plan shall not be taken into account with respect to the defined benefit portion of the plan for any purpose under this title (including the determination of the employer’s highest contribution rate under section 4219), even if, under the terms of the plan, participants have the option to transfer assets in their separate defined contribution accounts to the defined benefit portion of the plan in return for service credit under the defined benefit portion, at rates established by the plan sponsor. A legacy plan created under section 805 shall be deemed to have no unfunded vested benefits for purposes of this part, for each plan year following a period of 5 consecutive plan years for which— the plan was fully funded within the meaning of section 805 for at least 3 of the plan years during that period, ending with a plan year for which the plan is fully funded; the plan had no unfunded vested benefits for at least 3 of the plan years during that period, ending with a plan year for which the plan is fully funded; and the plan is projected to be fully funded and to have no unfunded vested benefits for the following four plan years. . Section 4211 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1382 ) is amended by adding at the end the following: No amount of unfunded vested benefits shall be allocated to an employer that has an obligation to contribute to a legacy plan described in subsection
(e)of section 4201 for each plan year for which such subsection applies. . Section 4212 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1392 ) is amended by adding at the end the following: An employer shall not be treated as having an obligation to contribute to a multiemployer defined benefit plan within the meaning of subsection
(a)solely because— in the case of a multiemployer plan that includes a composite plan component, the employer has an obligation to contribute to the composite plan component of the plan; the employer has an obligation to contribute to a composite plan that is maintained pursuant to one or more collective bargaining agreements under which the multiemployer defined benefit plan is or previously was maintained; or the employer contributes or has contributed under section 805(d) to a legacy plan associated with a composite plan pursuant to a collective bargaining agreement but employees of that employer were not eligible to accrue benefits under the legacy plan with respect to service with that employer. . Nothing in the amendment made by subsection
(e)shall be construed to create an inference with respect to the treatment under title IV of the Employee Retirement Income Security Act of 1974, as in effect before such amendment, of contributions by an employer to a multiemployer plan described in the except clause of section 3(35) of such Act that are made before the effective date of subsection
(e)specified in subsection (h)(2). Except as provided in subparagraph (2), the amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. 414(k) multiemployer plans The amendment made by subsection
(e)shall apply only to required contributions payable for plan years beginning after the date of the enactment of this Act.
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Sec. 503
Treatment of composite plans under title IV
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