ELECTION TO BE IN CRITICAL STATUS.

SEC. 102. ELECTION TO BE IN CRITICAL STATUS. (a) Amendments to Employee Retirement Income Security Act of 1974.— (1) In general.—Section 305(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(b)) is amended by adding at the end the following: “(4) Election to be in critical status.—Notwithstanding paragraph (2) and subject to paragraph (3)(B)(iv)— “(A) the plan sponsor of a multiemployer plan that is not in critical status for a plan year but that is projected by the plan actuary, pursuant to the determination under paragraph (3), to be in critical status in any of the succeeding 5 plan years may, not later than 30 days after the date of the certification under paragraph (3)(A), elect to be in critical status effective for the current plan year, “(B) the plan year in which the plan sponsor elects to be in critical status under subparagraph (A) shall be treated for purposes of this section as the first year in which the plan is in critical status, regardless of the date on which the plan first satisfies the criteria for critical status under paragraph (2), and “(C) a plan that is in critical status under this paragraph shall not emerge from critical status except in accordance with subsection (e)(4)(B).” . (2) Annual certification.— (A) In general.—Section 305(b)(3)(A)(i) of such Act (29 U.S.C. 1085(b)(3)(A)(i)) is amended by striking “, and” and inserting “or for any of the succeeding 5 plan years, and”. (B) Actuarial projections.—Section 305(b)(3)(B) of such Act (29 U.S.C. 1085(b)(3)(B)) is amended— (i) in clause (i), by striking “In making the determinations” and inserting “Except as provided in clause (iv), in making the determinations”; and (ii) by adding at the end the following: “(iv) Projections relating to critical status in succeeding plan years.—Clauses (i) and (ii) (other than the 2nd sentence of clause (i)) may be disregarded by a plan actuary in the case of any certification of whether a plan will be in critical status in a succeeding plan year, except that a plan sponsor may not elect to be in critical status for a plan year under paragraph (4) in any case in which the certification upon which such election would be based is made without regard to such clauses.” . (3) Notice.— (A) Of election to be in critical status.—Section 305(b)(3)(D)(i) of such Act (29 U.S.C. 1085(b)(3)(D)(i)) is amended— (i) by inserting after “for a plan year” the following: “or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)”; and (ii) by adding at the end the following: “In any case in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall notify the Secretary of the Treasury of such election not later than 30 days after the date of such certification or such other time as the Secretary of the Treasury may prescribe by regulations or other guidance.” (B) Of projection to be in critical status in a future plan year.—Section 305(b)(3)(D) of such Act (29 U.S.C. 1085(b)(3)(D)) is amended by adding at the end the following: “(iv) Notice of projection to be in critical status in a future plan year.—In any case in which it is certified under subparagraph (A)(i) that a multiemployer plan will be in critical status for any of 5 succeeding plan years (but not for the current plan year) and the plan sponsor of such plan has not made an election to be in critical status for the plan year under paragraph (4), the plan sponsor shall, not later than 30 days after the date of the certification, provide notification of the projected critical status to the Pension Benefit Guaranty Corporation.” . (b) Amendments to Internal Revenue Code.— (1) [26 U.S.C. 432] In general.—Section 432(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following: “(4) Election to be in critical status.—Notwithstanding paragraph (2) and subject to paragraph (3)(B)(iv)— “(A) the plan sponsor of a multiemployer plan that is not in critical status for a plan year but that is projected by the plan actuary, pursuant to the determination under paragraph (3), to be in critical status in any of the succeeding 5 plan years may, not later than 30 days after the date of the certification under paragraph (3)(A), elect to be in critical status effective for the current plan year, “(B) the plan year in which the plan sponsor elects to be in critical status under subparagraph (A) shall be treated for purposes of this section as the first year in which the plan is in critical status, regardless of the date on which the plan first satisfies the criteria for critical status under paragraph (2), and “(C) a plan that is in critical status under this paragraph shall not emerge from critical status except in accordance with subsection (e)(4)(B).” . (2) Annual certification.— (A) In general.—Section 432(b)(3)(A)(i) of such Code is amended by striking “, and” and inserting “or for any of the succeeding 5 plan years, and”. (B) Actuarial projections.—Section 432(b)(3)(B) of such Code is amended— (i) in clause (i), by striking “In making the determinations” and inserting “Except as provided in clause (iv), in making the determinations”; and (ii) by adding at the end the following: “(iv) Projections relating to critical status in succeeding plan years.—Clauses (i) and (ii) (other than the 2nd sentence of clause (i)) may be disregarded by a plan actuary in the case of any certification of whether a plan will be in critical status in a succeeding plan year, except that a plan sponsor may not elect to be in critical status for a plan year under paragraph (4) in any case in which the certification upon which such election would be based is made without regard to such clauses.” . (3) Notice.— (A) Of election to be in critical status.—Section 432(b)(3)(D)(i) of such Code is amended— (i) by inserting after “for a plan year” the following: “or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)”; and (ii) by adding at the end the following: “In any case in which a plan sponsor elects to be in critical status for a plan year under paragraph (4), the plan sponsor shall notify the Secretary of such election not later than 30 days after the date of such certification or such other time as the Secretary may prescribe by regulations or other guidance.”. (B) [26 U.S.C. 432] Of projection to be in critical status in a future plan year.—Section 432(b)(3)(D) of such Code is amended by adding at the end the following: “(iv) Notice of projection to be in critical status in a future plan year.—In any case in which it is certified under subparagraph (A)(i) that a multiemployer plan will be in critical status for any of 5 succeeding plan years (but not for the current plan year) and the plan sponsor of such plan has not made an election to be in critical status for the plan year under paragraph (4), the plan sponsor shall, not later than 30 days after the date of the certification, provide notification of the projected critical status to the Pension Benefit Guaranty Corporation.” . (c) [26 U.S.C. 432 note] Effective Date.—The amendments made by this section shall apply with respect to plan years beginning after December 31, 2014.