H.R.397: Rehabilitation for Multiemployer Pensions Act of 2019
The Rehabilitation for Multiemployer Pensions Act (H.R. 397) would provide federal loans and grants to certain multiemployer defined benefit pension plans that are insolvent or facing insolvency.
To receive a loan, a pension plan must be (1) in critical and declining status, including any plan with respect to which a suspension of benefits has been approved; (2) in critical status, have a modified funded percentage of less than 40%, and have a ratio of active to inactive participants which is less than two to five; or (3) insolvent, if the plan became insolvent after December 16, 2014, and has not been terminated.
The bill would allow the sponsor of a multiemployer pension plan that is applying for a loan under this bill to also apply to the Pension Benefit Guaranty Corporation (PBGC) for financial assistance if, after receiving the loan, the plan will still become (or remain) insolvent within the 30-year period beginning on the date of the loan.View Full Overview