(a) Authority of corporation
(1) Upon the application by the plan sponsor of an eligible multiemployer plan for a partition of the plan, the corporation may order a partition of the plan in accordance with this section. The corporation shall make a determination regarding the application not later than 270 days after the date such application was filed (or, if later, the date such application was completed) in accordance with regulations promulgated by the corporation.
(2) Not later than 30 days after submitting an application for partition of a plan under paragraph (1), the plan sponsor of the plan shall notify the participants and beneficiaries of such application, in the form and manner prescribed by regulations issued by the corporation.
(b) Eligible multiemployer plans
For purposes of this section, a multiemployer plan is an eligible multiemployer plan if—
(1) the plan is in critical and declining status (as defined in section
1085(b)(4) of this title);
(2) the corporation determines, after consultation with the Participant and Plan Sponsor Advocate selected under section
1304 of this title, that the plan sponsor has taken (or is taking concurrently with an application for partition) all reasonable measures to avoid insolvency, including the maximum benefit suspensions under section
1085(e)(9) of this title, if applicable;
(3) the corporation reasonably expects that—
(A) a partition of the plan will reduce the corporation's expected long-term loss with respect to the plan; and
(B) a partition of the plan is necessary for the plan to remain solvent;
(4) the corporation certifies to Congress that its ability to meet existing financial assistance obligations to other plans (including any liabilities associated with multiemployer plans that are insolvent or that are projected to become insolvent within 10 years) will not be impaired by such partition; and
(5) the cost to the corporation arising from such partition is paid exclusively from the fund for basic benefits guaranteed for multiemployer plans.
(c) Transfer of liabilities
The corporation's partition order shall provide for a transfer to the plan referenced in subsection (d)(1) of the minimum amount of the plan's liabilities necessary for the plan to remain solvent.
(d) Plans created by partition orders
(1) The plan created by the partition order is a successor plan to which section
1322a of this title applies.
(2) The plan sponsor of an eligible multiemployer plan prior to the partition and the administrator of such plan shall be the plan sponsor and the administrator, respectively, of the plan created by the partition order.
(3) In the event an employer withdraws from the plan that was partitioned within ten years following the date of the partition order, withdrawal liability shall be computed under section
1381 of this title with respect to both the plan that was partitioned and the plan created by the partition order. If the withdrawal occurs more than ten years after the date of the partition order, withdrawal liability shall be computed under section
1381 of this title only with respect to the plan that was partitioned (and not with respect to the plan created by the partition order).
(e) Payment of benefits and premiums for beneficiaries of partitioned plans
(1) For each participant or beneficiary of the plan whose benefit was transferred to the plan created by the partition order pursuant to a partition, the plan that was partitioned shall pay a monthly benefit to such participant or beneficiary for each month in which such benefit is in pay status following the effective date of such partition in an amount equal to the excess of—
(A) the monthly benefit that would be paid to such participant or beneficiary for such month under the terms of the plan (taking into account benefit suspensions under section
1085(e)(9) of this title and any plan amendments following the effective date of such partition) if the partition had not occurred, over
(B) the monthly benefit for such participant or beneficiary which is guaranteed under section
1322a of this title.
(2) In any case in which a plan provides a benefit improvement (as defined in section
1085(e)(9)(E)(vi) of this title) that takes effect after the effective date of the partition, the plan shall pay to the corporation for each year during the 10-year period following the partition effective date, an annual amount equal to the lesser of—
(A) the total value of the increase in benefit payments for such year that is attributable to the benefit improvement, or
(B) the total benefit payments from the plan created by the partition for such year.
Such payment shall be made at the time of, and in addition to, any other premium imposed by the corporation under this subchapter.
(3) The plan that was partitioned shall pay the premiums imposed by the corporation under this subchapter with respect to participants whose benefits were transferred to the plan created by the partition order for each year during the 10-year period following the partition effective date.
(f) Notice of partition orders to Congress
Not later than 14 days after the partition order, the corporation shall provide notice of such order to the Committee on Education and the Workforce of the House of Representatives, the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committee on Health, Education, Labor, and Pensions of the Senate, and any affected participants or beneficiaries.