Stat. Comp. Sec. 9707 — MODIFICATION OF SPECIAL RULES…

## SEC. 9707 MODIFICATION OF SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR COMMUNITY NEWSPAPER PLANS ###

(a)Amendment to Internal Revenue Code of 1986 **[**[29 U.S.C. 430](/us/usc/t29/s430)**]** Subsection

(m)of section 430 of the Internal Revenue Code of 1986 is amended to read as follows: > > ### “(m) Special Rules for Community Newspaper Plans > > > #### “(1) In general > > An eligible newspaper plan sponsor of a plan under which no participant has had the participant’s accrued benefit increased (whether because of service or compensation) after April 2, 2019, may elect to have the alternative standards described in paragraph

(4)apply to such plan. > > > #### “(2) Eligible newspaper plan sponsor > > The term ‘eligible newspaper plan sponsor’ means the plan sponsor of— > > > ##### “(A) > > any community newspaper plan, or > > > ##### “(B) > > any other plan sponsored, as of April 2, 2019, by a member of the same controlled group of a plan sponsor of a community newspaper plan if such member is in the trade or business of publishing 1 or more newspapers. > > > #### “(3) Election > > An election under paragraph

(1)shall be made at such time and in such manner as prescribed by the Secretary. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary. > > > #### “(4) Alternative minimum funding standards > > The alternative standards described in this paragraph are the following: > > > ##### “(A) Interest rates > > > ###### “(i) In general > > Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent. > > > ###### “(ii) New benefit accruals > > Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph

(1)is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year. > > > ###### “(iii) United states treasury obligation yield curve > > For purposes of this subsection, the term ‘United States Treasury obligation yield curve’ means, with respect to any day, a yield curve which shall be prescribed by the Secretary for such day on interest-bearing obligations of the United States. > > > ##### “(B) Shortfall amortization base > > > ###### “(i) Previous shortfall amortization bases > > The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph

(1)applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6). > > > ###### “(ii) New shortfall amortization base > > Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph

(1)applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)). > > > ##### “(C) Determination of shortfall amortization installments > > > ###### “(i) 30-year period > > Subparagraphs

(A)and

(B)of subsection (c)(2) shall be applied by substituting ‘30-plan-year’ for ‘7-plan-year’ each place it appears. > > > ###### “(ii) No special election > > The election under subparagraph

(D)of subsection (c)(2) shall not apply to any plan year to which the election under paragraph

(1)applies. > > > ##### “(D) Exemption from at-risk treatment > > Subsection

(i)shall not apply. > > > #### “(5) Community newspaper plan > > For purposes of this subsection— > > > ##### “(A) In general > > The term ‘community newspaper plan’ means any plan to which this section applies maintained as of December 31, 2018, by an employer which— > > > ###### “(i) > > maintains the plan on behalf of participants and beneficiaries with respect to employment in the trade or business of publishing 1 or more newspapers which were published by the employer at any time during the 11-year period ending on December 20, 2019, > > > ###### “(ii) > > > ######

(I)> > is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company, or > > > ###### “(II) > > is controlled, directly or indirectly, during the entire 30-year period ending on December 20, 2019, by individuals who are members of the same family, and does not publish or distribute a daily newspaper that is carrier-distributed in printed form in more than 5 States, and > > > ###### “(iii) > > is controlled, directly or indirectly— > > > ###### “(I) > > by 1 or more persons residing primarily in a State in which the community newspaper has been published on newsprint or carrier-distributed, > > > ###### “(II) > > during the entire 30-year period ending on December 20, 2019, by individuals who are members of the same family, > > > ###### “(III) > > by 1 or more trusts, the sole trustees of which are persons described in subclause

(I)or (II), or > > > ###### “(IV) > > by a combination of persons described in subclause (I), (II), or (III). > > > ##### “(B) Newspaper > > The term ‘newspaper’ does not include any newspaper (determined without regard to this subparagraph) to which any of the following apply: > > > ###### “(i) > > Is not in general circulation. > > > ###### “(ii) > > Is published (on newsprint or electronically) less frequently than 3 times per week. > > > ###### “(iii) > > Has not ever been regularly published on newsprint. > > > ###### “(iv) > > Does not have a bona fide list of paid subscribers. > > > ##### “(C) Control > > A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities. > > > #### “(6) Controlled group > > For purposes of this subsection, the term ‘controlled group’ means all persons treated as a single employer under subsection (b), (c), (m), or

(o)of section 414 as of December 20, 2019.” > . ###

(b)Amendment to Employee Retirement Income Security Act of 1974 Subsection

(m)of section 303 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(m)) is amended to read as follows: > > ### “(m) Special Rules for Community Newspaper Plans > > > #### “(1) In general > > An eligible newspaper plan sponsor of a plan under which no participant has had the participant’s accrued benefit increased (whether because of service or compensation) after April 2, 2019, may elect to have the alternative standards described in paragraph

(4)apply to such plan. > > > #### “(2) Eligible newspaper plan sponsor > > The term ‘eligible newspaper plan sponsor’ means the plan sponsor of— > > > ##### “(A) > > any community newspaper plan, or > > > ##### “(B) > > any other plan sponsored, as of April 2, 2019, by a member of the same controlled group of a plan sponsor of a community newspaper plan if such member is in the trade or business of publishing 1 or more newspapers. > > > #### “(3) Election > > An election under paragraph

(1)shall be made at such time and in such manner as prescribed by the Secretary of the Treasury. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary of the Treasury. > > > #### “(4) Alternative minimum funding standards > > The alternative standards described in this paragraph are the following: > > > ##### “(A) Interest rates > > > ###### “(i) In general > > Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent. > > > ###### “(ii) New benefit accruals > > Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph

(1)is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year. > > > ###### “(iii) United states treasury obligation yield curve > > For purposes of this subsection, the term ‘United States Treasury obligation yield curve’ means, with respect to any day, a yield curve which shall be prescribed by the Secretary of the Treasury for such day on interest-bearing obligations of the United States. > > > ##### “(B) Shortfall amortization base > > > ###### “(i) Previous shortfall amortization bases > > The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph

(1)applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6). > > > ###### “(ii) New shortfall amortization base > > Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph

(1)applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)). > > > ##### “(C) Determination of shortfall amortization installments > > > ###### “(i) 30-year period > > Subparagraphs

(A)and

(B)of subsection (c)(2) shall be applied by substituting ‘30-plan-year’ for ‘7-plan-year’ each place it appears. > > > ###### “(ii) No special election > > The election under subparagraph

(D)of subsection (c)(2) shall not apply to any plan year to which the election under paragraph

(1)applies. > > > ##### “(D) Exemption from at-risk treatment > > Subsection

(i)shall not apply. > > > #### “(5) Community newspaper plan > > For purposes of this subsection— > > > ##### “(A) In general > > The term ‘community newspaper plan’ means a plan to which this section applies maintained as of December 31, 2018, by an employer which— > > > ###### “(i) > > maintains the plan on behalf of participants and beneficiaries with respect to employment in the trade or business of publishing 1 or more newspapers which were published by the employer at any time during the 11-year period ending on December 20, 2019, > > > ###### “(ii) > > > ######

(I)> > is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company, or > > > ###### “(II) > > is controlled, directly, or indirectly, during the entire 30-year period ending on December 20, 2019, by individuals who are members of the same family, and does not publish or distribute a daily newspaper that is carrier-distributed in printed form in more than 5 States, and > > > ###### “(iii) > > is controlled, directly, or indirectly— > > > ###### “(I) > > by 1 or more persons residing primarily in a State in which the community newspaper has been published on newsprint or carrier-distributed, > > > ###### “(II) > > during the entire 30-year period ending on December 20, 2019, by individuals who are members of the same family, > > > ###### “(III) > > by 1 or more trusts, the sole trustees of which are persons described in subclause

(I)or (II), or > > > ###### “(IV) > > by a combination of persons described in subclause (I), (II), or (III). > > > ##### “(B) Newspaper > > The term ‘newspaper’ does not include any newspaper (determined without regard to this subparagraph) to which any of the following apply: > > > ###### “(i) > > Is not in general circulation. > > > ###### “(ii) > > Is published (on newsprint or electronically) less frequently than 3 times per week. > > > ###### “(iii) > > Has not ever been regularly published on newsprint. > > > ###### “(iv) > > Does not have a bona fide list of paid subscribers. > > > ##### “(C) Control > > A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities. > > > #### “(6) Controlled group > > For purposes of this subsection, the term ‘controlled group’ means all persons treated as a single employer under subsection (b), (c), (m), or

(o)of section 414 of the Internal Revenue Code of 1986 as of December 20, 2019. > > > #### “(7) Effect on premium rate calculation > > In the case of a plan for which an election is made to apply the alternative standards described in paragraph (3), the additional premium under section 4006(a)(3)(E) shall be determined as if such election had not been made.” > . ###

(c)Effective Date **[**[26 U.S.C. 430 note](/us/usc/t26/s430)**]** The amendments made by this section shall apply to plan years ending after December 31, 2017.

Sec. 9707. MODIFICATION OF SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR COMMUNITY NEWSPAPER PLANS