Sec. 601. Additional premiums
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Section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1306(a)(3) ) is amended— in subparagraph (A)— in clause (vi)— by inserting and before January 1, 2022, after 2014, ; and by striking or at the end; by moving the margins of clause
(vii)2 ems to the left; by redesignating clause
(vii)as clause (ix); and by inserting after clause
(vi)the following: in the case of a multiemployer plan, for plan years beginning in calendar year 2022, for each individual who is a participant in such plan during the plan year, the dollar amount in effect under clause
(i)for plan years beginning in 2022, . Section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1306(a)(3) ), as amended by subsection (a), is further amended— by inserting after clause
(vii)of subparagraph
(A)the following: in the case of a multiemployer plan, for any plan year beginning after December 31, 2022, an amount for each individual who is a participant in such plan during the plan year equal to the sum of— the premium rate applicable under clause (i)(VIII), plus the additional premium (if any) determined under subparagraph
(N)for the plan year, or ; and by adding at the end the following: The additional premium determined under this subparagraph with respect to any multiemployer plan for any plan year shall be an amount equal to the least of— the amount determined under clause
(ii)for the plan year divided by the number of participants in such plan as of the close of the preceding plan year; 10 percent of the historic base contributions divided by the number of participants in such plan as of the close of the preceding plan year; or $250. The amount determined under this clause for any plan year shall be an amount equal to $10 for each $1,000 (or fraction thereof) of the multiemployer unfunded vested benefits under the plan as of the close of the preceding plan year. For purposes of this clause, the term multiemployer unfunded vested benefits means, for a plan year, the excess (if any) of— the current liability of the plan as determined under section 304(c)(6)(D) by taking into account only vested benefits, over the fair market value (as determined under section 304(c)(6)(A)(ii)(I)) of the plan assets for the plan year which are held by the plan as of the valuation date. For purposes of clause (i)(II), the term historic base contributions means the average amount of the contributions, excluding any payments of withdrawal liability, to the plan required to be reported by the plan on Schedule MB of the 3 most recent Forms 5500 required to be filed before the date of enactment of this subparagraph. For each plan year beginning after December 31, 2023, there shall be substituted for the dollar amount of historic base contributions under clause (i)(II) and the dollar amount specified in clause (i)(III) an amount equal to the greater of— the product derived by multiplying such dollar amount for plan years beginning in that calendar year by the ratio of— the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to the national average wage index (as so defined) for 2021, or such dollar amount in effect for plan years beginning in the preceding calendar year. If any amount determined under this clause is not a multiple of $1, such product shall be rounded to the nearest multiple of $1. . Section 4006(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1306(a) ), as amended by this Act, is further amended by adding at the end the following: In addition to the amounts payable under paragraph (3), for plan years beginning after December 31, 2022, with respect to multiemployer plans, premiums shall be payable to the corporation with respect to participants and beneficiaries who are in pay status in accordance with this paragraph. Subject to subparagraphs (C), (D), and (E), the monthly amount payable by each participant or beneficiary who is in pay status is— an amount equal to 3 percent of the participant's or beneficiary's aggregate monthly benefit, in the case of a plan in endangered status, as described in section 305(b)(2); an amount equal to 5 percent of the participant's or beneficiary's aggregate monthly benefit, in the case of a plan in critical status, as described in section 305(b)(3); an amount equal to 7 percent of the participant's or beneficiary's aggregate monthly benefit, in the case of a plan in critical and declining status (as described in section 305(b)(7)), a plan that became an insolvent plan after the date of enactment of this paragraph, or a plan that has been terminated under section 4041A or 4042 but is not insolvent, unless that plan is (or was) an original or successor plan pursuant to a special partition order under section 4233A; or notwithstanding clauses (i), (ii), or (iii), an amount equal to 10 percent of the participant’s or beneficiary’s aggregate monthly benefit, in the case of a plan which is (or was) an original or successor plan pursuant to a special partition order under section 4233A, regardless of the status of the original or successor plan. In the case of any participant or beneficiary whose benefits are suspended under section 305(f)(9), the percentage of benefits payable under the applicable clause of subparagraph
(B)with respect to the participant or beneficiary shall be reduced (but not below zero) by the percentage of benefits which were so suspended. No benefits— based on disability (as defined by the plan), or of a participant or beneficiary who is entitled to a benefit under title II of the Social Security Act on the basis of a disability (as defined in section 223(d)(2) of such Act), shall be included in the calculation of the participant’s or beneficiary’s aggregate monthly benefit for purposes of determining the payment due under subparagraph (B). In the case of a participant or beneficiary who has attained or will attain at least 75 years of age in a plan year, the monthly amount payable by such participant or beneficiary for months during such plan year under this paragraph (determined without regard to this subparagraph) shall be reduced by the applicable percentage of such amount. For purposes of clause (i), the applicable percentage for any month shall be determined in accordance with the following table: If the individual is, or will attain during the plan year, age: The applicable percentage is: 75 20 percent 76 40 percent 77 60 percent 78 80 percent 79 or older 100 percent. The premiums payable under subparagraph
(B)shall be collected by the plan from participants who are receiving benefits under the plan by deducting the amount of the premium from the benefits as and when paid, and holding such amounts in a separate account to be remitted to the corporation annually, as prescribed by regulations of the corporation. Amounts held in a separate account under this subparagraph shall not accrue interest, shall not be treated as assets of the plan, and shall not be commingled with any other assets of the plan. The administrator of each multiemployer plan shall amend the plan documents to allow for deductions from benefits pursuant to this paragraph. This paragraph shall supersede any law of a State which would directly or indirectly prohibit or restrict an employer, plan, or labor organization from withholding or remitting premium amounts in accordance with this paragraph. Except as otherwise provided by the regulations issued pursuant to clause (ii), for purposes of determining premiums due under this paragraph, the plan's status shall be the status certified under section 305 for the first plan year beginning on or after January 1, 2022. The corporation shall issue regulations regarding the timing required for reflecting, in the amounts withheld, a revised plan status certified at a later date. In no event shall such regulations allow a delay of more than 90 days. In addition to the amounts payable under paragraph (3), for plan years beginning after December 31, 2022, with respect to multiemployer plans, premiums shall be payable to the corporation with respect to employers and labor organizations in accordance with this paragraph. The monthly amount payable by employers, for each employee participating in the plan (as determined under subparagraph (D)) during that month is— $1 in the case of a plan in unrestricted status pursuant to section 305(b)(1)(B), or $1.50 in the case of a plan in stable status pursuant to section 305(b)(1)(A), but only if the plan is not an original plan or a successor plan within the meaning of section 4233A; and $2.50 in any other case. The monthly amount payable by labor organizations, for each member paying dues and participating in the plan (as determined under subparagraph (D)) during that month is— $1 in the case of a plan in unrestricted status pursuant to section 305(b)(1)(B), or $1.50 in the case of a plan in stable status pursuant to section 305(b)(1)(A), but only if the plan is not an original plan or a successor plan within the meaning of section 4233A; and $2.50 in any other case. For purposes of subparagraphs
(B)and (C), an employee or member participating in the plan during any month is a person with respect to whom the employer had an obligation to contribute to the plan under the terms of a collective bargaining agreement or other participation agreement for that month. Premiums required under subparagraph
(B)or
(C)shall be remitted to the plan monthly and held in a separate account until remittance, as prescribed in subparagraph (F). In the case of a participant or beneficiary on whose behalf more than one employer contributed during a month, the plan may elect to apportion the monthly amount to the employers on a proportional basis. Amounts held in a separate account under this subparagraph shall not accrue interest, shall not be treated as assets of the plan, and shall not be commingled with any other assets of the plan. Each plan shall submit the premiums under subparagraph
(E)to the corporation, on an annual basis, as prescribed by regulations of the corporation. Except as otherwise provided by the regulations issued pursuant to clause (ii), for purposes of determining premiums due under this paragraph, the plan's status shall be the status certified under section 305 for the first plan year beginning on or after January 1, 2022. The corporation shall issue regulations regarding the timing required for reflecting, in the amounts due, a revised plan status certified at a later date. In no event shall such regulations allow a delay of more than 90 days. . Section 4007(b) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1307(b) ) is amended by adding at the end the following: The following plans shall not owe a variable rate premium determined under section 4006(a)(3)(N): An insolvent plan that has commenced receiving financial assistance. A plan which is certified by the plan actuary under section 305 as being in unrestricted status pursuant to section 305(b)(1)(B), and which is not an original plan within the meaning of section 4233A. With respect to plan years beginning before January 1, 2025, a plan which is certified by the plan actuary under section 305 as being in stable status pursuant to section 305(b)(1)(A), and which is not an original plan within the meaning of section 4233A. An insolvent plan that has commenced receiving financial assistance shall not owe the flat rate premium under section 4006(a)(3)(A)(viii)(I). In the case of a special partition under section 4233A, the original plan shall calculate and remit premiums under section 4006 as if the original plan and successor plan were one plan and the successor plan shall not be required to remit any such premiums. Paragraph
(1)shall apply to the additional premiums required by section 4006(a)(10) and (11). . Section 4007(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1307(c) ) is amended by inserting after the first sentence the following: The corporation is authorized to bring a civil action to prevent or correct any action by a designated payor, if a principal purpose of the action by the designated payor is to evade or avoid the payment of premiums, and the corporation shall be authorized to recover the amount of premium that should have been paid by such payor, plus a late payment penalty and interest. . Section 4008 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1308 ) is amended by adding at the end the following: Beginning with the report for fiscal year 2025, if the corporation projects in its reporting under this section that the corporation's multiemployer plan program will not remain solvent for at least 10 years after the date of the report, the corporation shall include in the report a recommendation for a balanced combination of premium increases and guarantee reductions needed to ensure solvency for the next 20 years without respect to any loans under section 4005. Such recommendations shall be automatically adopted at the beginning of the next fiscal year unless Congress takes other action. . Section 515 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1145 ) is amended— by striking , and inserting “ contributions .—Every contributions and premiums .— Every , and by adding at the end the following new subsection: Every employer or labor organization which is obligated to remit premiums with respect to a multiemployer plan under section 4006 shall remit such premiums to the plan in accordance with the terms of the plan and regulations issued by the corporation. . Section 502(g)(2)(A) of such Act ( 29 U.S.C. 1132(g)(2)(A) ) is amended by striking contributions, and inserting contributions or premiums, .
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