Stat. Comp. Sec. 107 — CORRECTIVE PLAN SCHEDULES WHEN…

## SEC. 107 CORRECTIVE PLAN SCHEDULES WHEN PARTIES FAIL TO ADOPT IN BARGAINING ###

(a)Amendments to Employee Retirement Income Security Act of 1974 Section 305 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085) is amended— ####

(1)in subsection (c), by amending paragraph

(7)to read as follows: > > #### “(7) Imposition of schedule where failure to adopt funding improvement plan > > > ##### “(A) Initial contribution schedule > > If— > > > ###### “(i) > > a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered endangered status expires, and > > > ###### “(ii) > > after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor, > > the plan sponsor shall implement the schedule described in paragraph (1)(B)(i)(I) beginning on the date specified in subparagraph (C). > > > ##### “(B) Subsequent contribution schedule > > If— > > > ###### “(i) > > a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a funding improvement plan (or imposed under subparagraph (A)) expires while the plan is still in endangered status, and > > > ###### “(ii) > > after receiving one or more updated schedules from the plan sponsor under paragraph (6)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated funding improvement plan and a schedule from the plan sponsor, > > then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning on the date specified in subparagraph (C). > > > ##### “(C) Date of implementation > > The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph

(A)or

(B)expires. > > > ##### “(D) Failure to make scheduled contributions > > Any failure to make a contribution under a schedule of contribution rates provided under this paragraph shall be treated as a delinquent contribution under section 515 and shall be enforceable as such.” > , ####

(2)in subsection (e)(3), by amending subparagraph

(C)to read as follows: > > ##### “(C) Imposition of schedule where failure to adopt rehabilitation plan > > > ###### “(i) Initial contribution schedule > > If— > > > ###### “(I) > > a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered critical status expires, and > > > ###### “(II) > > after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i), > > the plan sponsor shall implement the schedule described in the last sentence of paragraph

(1)beginning on the date specified in clause (iii). > > > ###### “(ii) Subsequent contribution schedule > > If— > > > ###### “(I) > > a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a rehabilitation plan (or imposed under subparagraph (C)(i)) expires while the plan is still in critical status, and > > > ###### “(II) > > after receiving one or more updated schedules from the plan sponsor under subparagraph (B)(ii), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated rehabilitation plan and a schedule from the plan sponsor, > > then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning on the date specified in clause (iii). > > > ###### “(iii) Date of implementation > > The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in clause

(i)or

(ii)expires. > > > ###### “(iv) Failure to make scheduled contributions > > Any failure to make a contribution under a schedule of contribution rates provided under this subsection shall be treated as a delinquent contribution under section 515 and shall be enforceable as such.” > . ###

(b)Amendments to the Internal Revenue Code **[**[26 U.S.C. 432](/us/usc/t26/s432)**]** Section 432 of the Internal Revenue Code of 1986 is amended— ####

(1)in subsection (c), by amending paragraph

(7)to read as follows: > > #### “(7) Imposition of schedule where failure to adopt funding improvement plan > > > ##### “(A) Initial contribution schedule > > If— > > > ###### “(i) > > a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered endangered status expires, and > > > ###### “(ii) > > after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor, > > the plan sponsor shall implement the schedule described in paragraph (1)(B)(i)(I) beginning on the date specified in subparagraph (C). > > > ##### “(B) Subsequent contribution schedule > > If— > > > ###### “(i) > > a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a funding improvement plan (or imposed under subparagraph (A)) expires while the plan is still in endangered status, and > > > ###### “(ii) > > after receiving one or more updated schedules from the plan sponsor under paragraph (6)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated funding improvement plan and a schedule from the plan sponsor, > > then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning on the date specified in subparagraph (C). > > > ##### “(C) Date of implementation > > The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph

(A)or

(B)expires.” > , and ####

(2)in subsection (e)(3), by amending subparagraph

(C)to read as follows: > > ##### “(C) Imposition of schedule where failure to adopt rehabilitation plan > > > ###### “(i) Initial contribution schedule > > If— > > > ###### “(I) > > a collective bargaining agreement providing for contributions under a multiemployer plan that was in effect at the time the plan entered critical status expires, and > > > ###### “(II) > > after receiving one or more schedules from the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i), > > the plan sponsor shall implement the schedule described in the last sentence of paragraph

(1)beginning on the date specified in clause (iii). > > > ###### “(ii) Subsequent contribution schedule > > If— > > > ###### “(I) > > a collective bargaining agreement providing for contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor pursuant to a rehabilitation plan (or imposed under subparagraph (C)(i)) expires while the plan is still in critical status, and > > > ###### “(II) > > after receiving one or more updated schedules from the plan sponsor under subparagraph (B)(ii), the bargaining parties with respect to such agreement fail to adopt a contribution schedule with terms consistent with the updated rehabilitation plan and a schedule from the plan sponsor, > > then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning on the date specified in clause (iii). > > > ###### “(iii) Date of implementation > > The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in clause

(ii)or

(iii)expires.” > . ###

(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. 107. CORRECTIVE PLAN SCHEDULES WHEN PARTIES FAIL TO ADOPT IN BARGAINING