article: SECTION 1. REDUCTIONS IN CONTRIBUTIONS TO MULTIEMPLOYER PLANS TO IMPLEMENT SELF-HELP MEASURES ADOPTED BY LABOR AND MANAGEMENT. (a) Amendments to ERISA.--Section 305 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085) is amended-- (1) by redesignating subsection (i) as subsection (j); and (2) by inserting after subsection (h) the following: ``(i) Discretion To Accept Reduced Contributions.-- ``(1) In general.--Notwithstanding any other provision of this section, during the funding plan adoption period, funding improvement period, rehabilitation plan adoption period, and the rehabilitation period, the Pension Benefit Guaranty Corporation may permit a plan sponsor to accept from an employer a ratified collective bargaining agreement with respect to the multiemployer plan that provides for a reduction in the level of contributions made by a contributing employer and appropriate reduction in level of future benefit accruals for any participants for a period of not more than 5 years (or such shorter period as determined by such Corporation) provided that such Corporation determines that-- ``(A) the contributing employer will be unable to pay its debts when due and will be unable to continue business without a reduction in its contribution rates; ``(B) the aggregate withdrawal liability of the contributing employer with respect to all multiemployer pension plans exceeds $750,000,000, or such lower amount as determined to be appropriate by such Corporation; ``(C) there is substantial doubt as to the collectability of the withdrawal liability if the contributing employer were to withdraw from the plan; ``(D) the reduced contributions are not reasonably expected to have an adverse effect on the deficit of such Corporation; ``(E) other creditors, stakeholders, and other parties to which the contributing employer is obligated have accepted reductions that are comparable to those of the pension plan; and ``(F) such other conditions are satisfied as may be imposed in accordance with regulations prescribed by such Corporation. ``(2) Impact on withdrawal liability determinations.--Any reduction in the level of contributions under this subsection shall be disregarded in determining any limitation on annual payments under subparagraphs (B) and (C) of section 4219(c)(1) and in determining withdrawal liability under section 4201 with respect to the employer subject to the reduced contribution rate.''. (b) Amendments to Internal Revenue Code.--Section 432 of the Internal Revenue Code of 1986 is amended-- (1) by redesignating subsection (i) as subsection (j); and (2) by inserting after subsection (h) the following: ``(i) Discretion To Accept Reduced Contributions.-- ``(1) In general.--Notwithstanding any other provision of this section, during the funding plan adoption period, funding improvement period, rehabilitation plan adoption period, and the rehabilitation period, the Pension Benefit Guaranty Corporation may permit a plan sponsor to accept from an employer a ratified collective bargaining agreement with respect to the multiemployer plan that provides for a reduction in the level of contributions made by a contributing employer and appropriate reduction in level of future benefit accruals for any participants for a period of not more than 5 years (or such shorter period as determined by such Corporation) provided that such Corporation determines that-- ``(A) the contributing employer will be unable to pay its debts when due and will be unable to continue business without a reduction in its contribution rates; ``(B) the aggregate withdrawal liability of the contributing employer with respect to all multiemployer pension plans exceeds $750,000,000, or such lower amount as determined by such Corporation; ``(C) there is substantial doubt as to the collectability of the withdrawal liability if the contributing employer were to withdraw from the plan; ``(D) the reduced contributions are not reasonably expected to have an adverse effect on the deficit of such Corporation; ``(E) other creditors, stakeholders, and other parties to which the contributing employer is obligated have accepted reductions that are comparable to those of the pension plan; and ``(F) such other conditions are satisfied as may be imposed in accordance with regulations prescribed by such Corporation. ``(2) Impact on withdrawal liability determinations.--Any reduction in the level of contributions under this subsection shall be disregarded in determining any limitation on annual payments under subparagraphs (B) and (C) of section 4219(c)(1) of the Employee Retirement Income Security Act of 1974 and in determining withdrawal liability under section 4201 of such Act with respect to the employer subject to the reduced contribution rate.''. (c) Technical and Conforming Amendments.-- (1) Section 4971(g)(4)(C)(ii) of the Internal Revenue Code of 1986 is amended by striking ``432(i)(9)'' and inserting ``432(j)(9)''. (2) Sections 101(f)(2)(B) and 103(f)(1)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(f)(2)(B) and 1023(f)(1)(B)) are each amended by striking ``305(i)'' each place such term appears and inserting ``305(j)''.
summary: Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to authorize the Pension Benefit Guaranty Corporation (PBGC), provided certain conditions are met, to allow the sponsor of an underfunded multiemployer benefit plan to accept from an employer a ratified collective bargaining agreement that provides for a reduction in plan employer contributions as well as appropriate reduction in the level of future benefit accruals for plan participants for up to five years during the plan funding adoption period, funding improvement period, rehabilitation adoption period, and rehabilitation period. Conditions such an allowance upon the PBGC's determination that: (1) the contributing employer will be unable to pay its debts when due and to continue business without a reduction in its contribution rates; (2) the contributing employer's aggregate withdrawal liability with respect to all multiemployer pension plans exceeds $750 million (or an appropriate lower amount as the PBGC may determine); (3) the collectability of the withdrawal liability is very doubtful if the contributing employer were to withdraw from the plan; (4) the reduced contributions are not reasonably expected to have an adverse effect on the PBGC deficit; and (5) other creditors, stakeholders, and parties to which the contributing employer is obligated have accepted comparable reductions.