Stat. Comp. Sec. 108 — REPEAL OF REORGANIZATION RULES…

## SEC. 108 REPEAL OF REORGANIZATION RULES FOR MULTIEMPLOYER PLANS ###

(a)Amendments to Employee Retirement Income Security Act of 1974 ####

(1)In general Sections 4241, 4242, 4243, 4244, and 4244A of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1421; 1422; 1423; 1424; 1425) are repealed. ####

(2)Modification of insolvency rules Section 4245 of such Act (29 U.S.C. 1426) is amended— #####

(A)by striking “reorganization” each place it appears and inserting “critical status, as described in subsection 305(b)(2),”; #####

(B)in subsection (c)(2)— ######

(i)by striking “The suspension” and inserting “(A) The suspension”; ######

(ii)by striking “(within the meaning of section 4241(b)(6))”; and ######

(iii)by adding at the end the following: > > ##### “(B) > > For purposes of this paragraph— > > > ###### “(i) > > the term ‘person in pay status’ means— > > > ###### “(I) > > a participant or beneficiary on the last day of the base plan year who, at any time during such year, was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and > > > ###### “(II) > > to the extent provided in regulations prescribed by the Secretary of the Treasury, any other person who is entitled to such a benefit under the plan. > > > ###### “(ii) > > the base plan year for any plan year is— > > > ###### “(I) > > if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or > > > ###### “(II) > > if there is no relevant collective bargaining agreement, the last plan year ending at least 12 months before the beginning of the plan year. > > > ###### “(iii) > > a relevant collective bargaining agreement is a collective bargaining agreement— > > > ###### “(I) > > which is in effect for at least 6 months during the plan year, and > > > ###### “(II) > > which has not been in effect for more than 36 months as of the end of the plan year. > > > ###### “(iv) > > the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.” > ; #####

(C)in subsection (d)— ######

(i)in paragraph (1), by striking “(determined in accordance with section 4243(3)(B)(ii))”; and ######

(ii)by adding at the end the following: > > #### “(4) > > For purposes of this subsection, the value of plan assets shall be the value of the available plan assets determined under regulations prescribed by the Secretary of the Treasury.” > ; #####

(D)in subsection (e)(1)— ######

(i)in subparagraph (A), by striking “the corporation, the parties described in section 4242(a)(2), and the plan participants and beneficiaries” and inserting “the parties described in section 101(f)(1)”; and ######

(ii)in subparagraph (B), by striking “section 4242(a)(2) and the plan participants and beneficiaries” and inserting “section 101(f)(1)”; and #####

(E)by adding at the end the following: > > ### “(g) > > Subsections

(a)and

(c)shall not apply to a plan that, for the plan year, is operating under section 305(e)(9), regarding benefit suspensions by certain multiemployer plans in critical and declining status.” > . ####

(3)Conforming amendments #####

(A)Definition of reorganization index Section 4001(a) of such Act (29 U.S.C. 1301(a)) is amended by striking paragraph (9). #####

(B)Minimum funding standards Section 304(a) of such Act (29 U.S.C. 1084(a)) is amended to read as follows: > > ### “(a) In general > > For purposes of section 302, the accumulated funding deficiency of a multiemployer plan for any plan year is the amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account of the plan for all plan years (beginning with the first plan year for which this part applies to the plan) over the total credits to such account for such years.” > . #####

(C)Modification of part heading Part 3 of subtitle D of title IV of such Act (29 U.S.C. 1421 et seq.) is amended by striking the heading and inserting “insolvent plans”. #####

(D)Conforming amendment to table of contents The table of contents in section 1 of such Act (29 U.S.C. 1001 note) is amended by striking the items relating to sections 4241 through 4244A. ###

(b)Amendments to the Internal Revenue Code ####

(1)In general **[**[26 U.S.C. 418](/us/usc/t26/s418),418A-**]** Sections 418, 418A, 418B, 418C, and 418D of the Internal Revenue Code of 1986 are repealed. ####

(2)Modification of insolvency rules Section 418E of such Code is amended— #####

(A)by striking “reorganization” each place it appears and inserting “critical status, as described in subsection 432(b)(2),”; #####

(B)in subsection (c)(2)— ######

(i)by striking “The suspension” and inserting “(A) The suspension”; ######

(ii)by striking “(within the meaning of section 418(b)(6))”; and ######

(iii)by adding at the end the following: > > ##### “(B) > > For purposes of this paragraph— > > > ###### “(i) > > the term ‘person in pay status’ means— > > > ###### “(I) > > a participant or beneficiary on the last day of the base plan year who, at any time during such year, was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and > > > ###### “(II) > > to the extent provided in regulations prescribed by the Secretary of the Treasury, any other person who is entitled to such a benefit under the plan. > > > ###### “(ii) > > the base plan year for any plan year is— > > > ###### “(I) > > if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or > > > ###### “(II) > > if there is no relevant collective bargaining agreement, the last plan year ending at least 12 months before the beginning of the plan year. > > > ###### “(iii) > > a relevant collective bargaining agreement is a collective bargaining agreement— > > > ###### “(I) > > which is in effect for at least 6 months during the plan year, and > > > ###### “(II) > > which has not been in effect for more than 36 months as of the end of the plan year. > > > ###### “(iv) > > the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.” > ; #####

(C)in subsection (d)— ######

(i)in paragraph (1), by striking “(determined in accordance with section 418B(3)(B)(ii))”; ######

(ii)by adding at the end the following: > > #### “(4) > > For purposes of this subsection, the value of plan assets shall be the value of the available plan assets determined under regulations prescribed by the Secretary of the Treasury.” > ; #####

(D)in subsection (e)(1)— ######

(i)in subparagraph (A), by striking “the corporation, the parties described in section 418A(a)(2), and the plan participants and beneficiaries” and inserting “the parties described in section 101(f)(1) of the Employee Retirement Income Security Act of 1974”; and ######

(ii)in subparagraph (B), by striking “section 418A(a)(2) and the plan participants and beneficiaries” and inserting “section 101(f)(1) of the Employee Retirement Income Security Act of 1974”; and #####

(E)by adding at the end the following: > > ### “(h) > > Subsections

(a)and

(c)shall not apply to a plan that, for the plan year, is operating under section 432(e)(9), regarding benefit suspensions by certain multiemployer plans in critical and declining status.” > . ####

(3)Conforming amendments #####

(A)Minimum funding standards **[**[26 U.S.C. 431](/us/usc/t26/s431)**]** Section 431(a) of the Internal Revenue Code of 1986 is amended to read as follows: > > ### “(a) In general > > For purposes of section 412, the accumulated funding deficiency of a multiemployer plan for any plan year is the amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account of the plan for all plan years (beginning with the first plan year for which this part applies to the plan) over the total credits to such account for such years.” > . #####

(B)Modification of subpart heading Subpart C of part I of subchapter D of chapter 1 of such Code is amended by striking the heading and inserting “insolvent plans”. #####

(C)Conforming amendment to table of contents The table of contents for such subpart C is amended by striking the items relating to sections 418 through 418D. #####

(D)Conforming amendment to table of subparts The table of subparts for part I of subchapter D of chapter 1 of such Code is amended by striking the heading and inserting “insolvent plans”. ###

(c)Effective Date **[**[26 U.S.C. 418 note](/us/usc/t26/s418)**]** The amendments made by this section shall apply with respect to plan years beginning after December 31, 2014.

Sec. 108. REPEAL OF REORGANIZATION RULES FOR MULTIEMPLOYER PLANS