Stat. Comp. Sec. 106 — CONFORMING ENDANGERED STATUS A…

## SEC. 106 CONFORMING ENDANGERED STATUS AND CRITICAL STATUS RULES DURING FUNDING IMPROVEMENT AND REHABILITATION PLAN ADOPTION PERIODS ###

(a)Amendments to Employee Retirement Income Security Act of 1974 Section 305(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(d)) is amended to read as follows: > > ### “(d) Rules for Operation of Plan During Adoption and Improvement Periods > > > #### “(1) Compliance with funding improvement plan > > > ##### “(A) In general > > A plan may not be amended after the date of the adoption of a funding improvement plan under subsection

(c)so as to be inconsistent with the funding improvement plan. > > > ##### “(B) Special rules for benefit increases > > A plan may not be amended after the date of the adoption of a funding improvement plan under subsection

(c)so as to increase benefits, including future benefit accruals, unless the plan actuary certifies that such increase is paid for out of additional contributions not contemplated by the funding improvement plan, and, after taking into account the benefit increase, the multiemployer plan still is reasonably expected to meet the applicable benchmark on the schedule contemplated in the funding improvement plan. > > > #### “(2) Special rules for plan adoption period > > During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial determination year and ending on the date of the adoption of a funding improvement plan— > > > ##### “(A) > > the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for— > > > ###### “(i) > > a reduction in the level of contributions for any participants, > > > ###### “(ii) > > a suspension of contributions with respect to any period of service, or > > > ###### “(iii) > > any new direct or indirect exclusion of younger or newly hired employees from plan participation, and > > > ##### “(B) > > no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan may be adopted unless the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 or to comply with other applicable law.” > . ###

(b)Amendments to Internal Revenue Code **[**[26 U.S.C. 432](/us/usc/t26/s432)**]** Section 432(d) of the Internal Revenue Code of 1986 is amended to read as follows: > > ### “(d) Rules for Operation of Plan During Adoption and Improvement Periods > > > #### “(1) Compliance with funding improvement plan > > > ##### “(A) In general > > A plan may not be amended after the date of the adoption of a funding improvement plan under subsection

(c)so as to be inconsistent with the funding improvement plan. > > > ##### “(B) Special rules for benefit increases > > A plan may not be amended after the date of the adoption of a funding improvement plan under subsection

(c)so as to increase benefits, including future benefit accruals, unless the plan actuary certifies that such increase is paid for out of additional contributions not contemplated by the funding improvement plan, and, after taking into account the benefit increase, the multiemployer plan still is reasonably expected to meet the applicable benchmark on the schedule contemplated in the funding improvement plan. > > > #### “(2) Special rules for plan adoption period > > During the period beginning on the date of the certification under subsection (b)(3)(A) for the initial determination year and ending on the date of the adoption of a funding improvement plan— > > > ##### “(A) > > the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect to the multiemployer plan that provides for— > > > ###### “(i) > > a reduction in the level of contributions for any participants, > > > ###### “(ii) > > a suspension of contributions with respect to any period of service, or > > > ###### “(iii) > > any new direct or indirect exclusion of younger or newly hired employees from plan participation, and > > > ##### “(B) > > no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan may be adopted unless the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 or to comply with other applicable law.” > . ###

(c)Effective Date **[**[26 U.S.C. 432 note](/us/usc/t26/s432)**]** The amendments made by this section shall apply with respect to plan years beginning after December 31, 2014.

Sec. 106. CONFORMING ENDANGERED STATUS AND CRITICAL STATUS RULES DURING FUNDING IMPROVEMENT AND REHABILITATION PLAN ADOPTION PERIODS