Stat. Comp. Sec. 9703 — ADJUSTMENTS TO FUNDING STANDA…

## SEC. 9703 ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES ###

(a)Adjustments ####

(1)Amendment to employee retirement income security act of 1974 Section 304(b)(8) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is amended by adding at the end the following new subparagraph: > > ##### “(F) Relief for 2020 and 2021 > > A multiemployer plan with respect to which the solvency test under subparagraph

(C)is met as of February 29, 2020, may elect to apply this paragraph (without regard to whether such plan previously elected the application of this paragraph)— > > > ###### “(i) > > by substituting ‘February 29, 2020’ for ‘August 31, 2008’ each place it appears in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), > > > ###### “(ii) > > by inserting ‘and other losses related to the virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19) (including experience losses related to reductions in contributions, reductions in employment, and deviations from anticipated retirement rates, as determined by the plan sponsor)’ after ‘net investment losses’ in subparagraph (A)(i), and > > > ###### “(iii) > > by substituting ‘this subparagraph or subparagraph (A)’ for ‘this subparagraph and subparagraph

(A)both’ in subparagraph (B)(iii). > > The preceding sentence shall not apply to a plan to which special financial assistance is granted under section 4262. For purposes of the application of this subparagraph, the Secretary of the Treasury shall rely on the plan sponsor’s calculations of plan losses unless such calculations are clearly erroneous.” ” > . ####

(2)Amendment to internal revenue code of 1986 **[**[26 U.S.C. 431](/us/usc/t26/s431)**]** Section 431(b)(8) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: > > ##### “(F) Relief for 2020 and 2021 > > A multiemployer plan with respect to which the solvency test under subparagraph

(C)is met as of February 29, 2020, may elect to apply this paragraph (without regard to whether such plan previously elected the application of this paragraph)— > > > ###### “(i) > > by substituting ‘February 29, 2020’ for ‘August 31, 2008’ each place it appears in subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), > > > ###### “(ii) > > by inserting ‘and other losses related to the virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19) (including experience losses related to reductions in contributions, reductions in employment, and deviations from anticipated retirement rates, as determined by the plan sponsor)’ after ‘net investment losses’ in subparagraph (A)(i), and > > > ###### “(iii) > > by substituting ‘this subparagraph or subparagraph (A)’ for ‘this subparagraph and subparagraph

(A)both’ in subparagraph (B)(iii). > > The preceding sentence shall not apply to a plan to which special financial assistance is granted under section 4262 of the Employee Retirement Income Security Act of 1974. For purposes of the application of this subparagraph, the Secretary shall rely on the plan sponsor’s calculations of plan losses unless such calculations are clearly erroneous.” ” > . ###

(b)Effective Dates **[**[26 U.S.C. 431 note](/us/usc/t26/s431)**]** ####

(1)In general The amendments made by this section shall take effect as of the first day of the first plan year ending on or after February 29, 2020, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after February 29, 2020, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 to such plan year. ####

(2)Restrictions on benefit increases Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D) of such Code, as applied by the amendments made by this section, shall take effect on the date of enactment of this Act.

Sec. 9703. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES