S.Amdt. 3216

1. Adds TITLE __--OTHER PROVISIONS wherever appropriate

   Adds a title

   Inserted: TITLE __--OTHER PROVISIONS

   Inserted: SEC. ____. LIMITATION ON WITHDRAWAL LIABILITY OF CERTAIN SMALL EMPLOYERS PARTICIPATING IN A MULTIEMPLOYER PLAN.

   Inserted: (a) In General.--Subsection (a) of section 4225 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1405(a)) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:

   Inserted: "(2) In the case of an electing eligible small employer, the portion of unfunded vested benefits (as determined after the application of all sections of this part having a lower number designation than this section) allocable to such employer shall be the greater of--

   Inserted: "(A) the amount determined under paragraph (1) (determined as if the table under paragraph (3) applied only to the liquidation or distribution value of the employer); or

   Inserted: "(B) a portion (determined under paragraph (3)) of the unfunded vested benefits (as so determined, but using the method under section 4211 which results in the lowest amount) attributable to employees of the employer.

   Inserted: The amount determined under the preceding sentence shall not exceed the amount determined by applying section 4219(c)(1)(B) without regard to any interest due on withdrawal liability amounts which are deemed to be past due at the time total payments are computed for the period of 20 years described in such section.".

   Inserted: (b) Electing Eligible Small Employer.--Subsection (a) of section 4225 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1405(a)) is amended by adding at the end the following new paragraph:

   Inserted: "(4) For purposes of paragraphs (2) and (3)--

   Inserted: "(A) The term 'electing eligible small employer' means an employer--

   Inserted: "(i) the stock of which is not publicly traded for more than \1/2\ of the 3-calendar-year period ending with the calendar year that includes the date of the enactment of this paragraph;

   Inserted: "(ii) that has an average of fewer than 100 participants in a multiemployer plan at each business location over such 3-year period;

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   Inserted: "(iii) an average of 60 percent or fewer of the employees of which at all business locations are participants in a multiemployer plan over such 3-year period; and

   Inserted: "(iv) that elects by notification to the plan sponsor, during the 5-consecutive-plan-year period beginning with the first plan year beginning after the date of the enactment of this paragraph, to have paragraph (2) apply to such employer.

   Inserted: An employer shall be treated as an electing eligible small employer only if such employer pays the amount determined under paragraph (2) in a lump sum payment before the end of such 5-year period.

   Inserted: "(B) The unfunded vested benefits of the electing eligible small employer shall be determined as of the first day of the first plan year beginning after the date of the enactment of this paragraph, and shall be determined without regard to any supplemental payments or payments made by reason of rehabilitation status of the plan.".

   Inserted: (c) Conforming Amendments.--

   Inserted: (1) Section 4225(a)(1)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1405(a)(1)(A)) is amended by striking "paragraph (2)" and inserting "paragraph (3)".

   Inserted: (2) Paragraph (3) of section 4225(a) of such Act (29 U.S.C. 1405(a)(3)), as redesignated by subsection (a), is amended--

   Inserted: (A) by striking "paragraph (1)" and inserting "paragraphs (1) and (2)", and

   Inserted: (B) by striking "of the employer" in the heading of the first column of the table and inserting "of the employer (or, in the case of an electing eligible small employer, the unfunded vested benefits of the employer)".

   Inserted: SEC. ____. EXCISE TAX ON MULTIEMPLOYER PLANS THAT FAIL TO COMPLY WITH SMALL EMPLOYER WITHDRAWAL LIABILITY LIMITATION.

   Inserted: (a) In General.--Chapter 43 is amended by adding at the end the following new section:

   Inserted: "SEC. 4980J. EXCISE TAX ON MULTIEMPLOYER PLANS THAT FAIL TO COMPLY WITH SMALL EMPLOYER WITHDRAWAL LIABILITY LIMITATION.

   Inserted: "(a) Imposition of Tax.--If--

   Inserted: "(1) a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies includes an electing eligible small employer (as defined in section 4225(a)(4) of such Act), and

   Inserted: "(2) the plan is not amended, as of the last day of the first plan year beginning after the later of--

   Inserted: "(A) the date of the enactment of paragraph (4) of section 4225(a) of such Act; or

   Inserted: "(B) receipt by the plan of notice from one or more employers participating in the plan that such employer is making the election under section 4225(a)(4)(A)(iv);

   Inserted: to comply with the limitation under section 4225(a)(2) of such Act, there is hereby imposed a tax in the amount determined under subsection (b).

   Inserted: "(b) Amount Determined.--The amount determined under this subsection is, with respect to each calendar year (or portion thereof) in the period beginning on the date described in subsection (a)(2) and ending on the effective date of an amendment to the plan that complies with the limitation under section 4225(a)(2) of the Employee Retirement Income Security Act of 1974, the product of--

   Inserted: "(1) $10,000, and

   Inserted: "(2) the number of participants in the plan who are employees of the electing eligible small employer for plan years beginning in such calendar year.

   Inserted: "(c) Liability for, and Time of Payment of, Tax.--For purposes of this section--

   Inserted: "(1) Liability.--The tax imposed by subsection (a) shall be paid by the plan sponsor (within the meaning of section 432(i)((9)).

   Inserted: "(2) Time of payment.--The Secretary may provide for the tax imposed by subsection (a) to be paid on an annual or lump sum basis, or at such other time as the Secretary deems appropriate.

   Inserted: "(d) Waiver of Tax.--In the case of a failure to amend a plan to comply with the limitation under section 4225(a)(2) of the Employee Retirement Income Security Act of 1974 which the Secretary determines (in coordination with the Secretary of Labor) is due to reasonable cause and not to willful neglect, the Secretary may waive all or a portion of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive or otherwise inequitable in relation to the amount of the withdrawal liability of the electing eligible small employer involved.".

   Inserted: (b) Clerical Amendment.--The table of sections for chapter 43 is amended by adding at the end the following new item:

   Inserted: "Sec. 4980J. Excise tax on multiemployer plans that fail to comply with small employer withdrawal liability limitation.".

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As printed