Workers' Pension Protection Act

Summary: TABLE OF CONTENTS: 
     Title I:  Minimum Guaranteed Benefits 
     Title II:  Treatment of Asset Deficient Multiemployer Pension 
          Plans 
     Title III:  Actuarial Assumptions 
     Title IV:  Administration and Enforcement 
     Title V:  Increase in Multiemployer Plan Insurance Premiums 
Workers' Pension Protection Act - Amends the Employee Retirement Income Security Act of 1974 to revise protections for workers in multiemployer pension plans. 
Title I:  Minimum Guaranteed Benefits
 - Revises a formula and increases the amount of multiemployer plan benefits guaranteed by the Pension Benefit Guaranty Corporation. 
Title II:  Treatment of Asset Deficient Multiemployer Pension Plans
 - Prohibits multiemployer pension plan trustees from increasing benefits if the plan is an asset deficient plan with a funded current liability percentage of 95 percent or less. Allows a plan that is not asset deficient to choose to increase benefits if the benefit increase would not reduce the funding levels to below 90 percent. 
Requires multiemployer plans to use specified interest rate assumptions and mortality tables. 
Modifies a rule which prohibits decrease of accrued benefits to make an exception for plan amendments which reduce an increase resulting from an increase in benefits prohibited under this title. 
Requires multiemployer plan administrators to notify plan participants, beneficiaries, and contributing employers of the plan's funding status and the limits of the guarantee by the PBGC if the plan becomes insolvent. 
Title III:  Actuarial Assumptions
 - Requires multiemployer plans, for purposes of determining withdrawal liability, to adopt the interest rate and mortality tables for determining current liability which are specified under title I of this Act. 
Title IV:  Administration and Enforcement
 - Grants employers that contribute to multiemployer plans the right to seek an injunction against a plan to prevent an impermissible benefit increase or any other violations of specified provisions, or obtain other appropriate relief to redress such violations or enforce such provisions. 
Authorizes a court, in its discretion, to award reasonable attorney's fees and costs to either party in such actions. 
Title V:  Increase in Multiemployer Plan Insurance Premiums
 - Provides for phased-in increases in multiemployer plan insurance premiums.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workers' Pension Protection Act''.

                  TITLE I--MINIMUM GUARANTEED BENEFITS

SEC. 101. MULTIEMPLOYER PLAN BENEFITS GUARANTEE.

    (a) In General.--Section 4022A(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1322A(c)) is amended--
            (1) by striking ``$5'' each place it appears in paragraph 
        (1) and inserting ``$11'',
            (2) by striking ``$15'' in paragraph (1) and inserting 
        ``$33'', and
            (3) by striking paragraphs (2), (5), and (6) and by 
        redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
        respectively.
    (b) Conforming Amendment.--Section 4244(e)(4) of such Act (29 
U.S.C. 1424(e)(4)) is amended by striking ``and without regard to 
section 4022A(c)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to benefits payable after the date of the enactment of this Act, 
except that such amendments shall not apply to any multiemployer plan 
that has received financial assistance (within the meaning of section 
4261 of the Employee Retirement Income Security Act of 1974) within the 
1-year period ending on the date of the enactment of this Act.

   TITLE II--TREATMENT OF ASSET DEFICIENT MULTIEMPLOYER PENSION PLANS

SEC. 201. FUNDING REQUIREMENTS FOR ASSET DEFICIENT MULTIEMPLOYER PLANS.

    (a) In General.--Part 3 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 301 et seq.) is 
amended by redesignating section 308 as section 309 and by adding after 
section 307 the following:

``SEC. 308. RESTRICTIONS ON ASSET DEFICIENT MULTIEMPLOYER PLANS.

    ``(a) Limitation on Benefit Increases for Asset Deficient Plans.--
The trustees of a multiemployer plan shall not increase benefits for a 
plan year if the plan is an asset deficient plan (as defined in 
subsection (e)(5)) on the last day of the plan year immediately 
preceding the plan year in which the increase in benefits would take 
effect.
    ``(b) Limitation on Amount of Benefit Increase for Other 
Multiemployer Plans.--The trustees of a multiemployer plan to which 
subsection (a) does not apply shall not increase benefits for a plan 
year to the extent the increase in benefits would result in a funded 
current liability percentage of less than 90 percent for the plan year 
in which the benefit increase takes effect (determined by taking into 
account the amount of the unfunded current liability under the plan 
attributable to the benefit increase).
    ``(c) Treatment of Interest Rates.--
            ``(1) In general.--The rate of interest used to determine 
        current liabilities of a multiemployer plan for purposes of 
        this section shall be the rate of interest used under section 
        302(b)(5)(B), except that the highest rate in the permissible 
        range under clause (ii) thereof shall not exceed the specified 
        percentage under paragraph (2) of the weighted average referred 
        to in such clause.
            ``(2) Specified percentage.--For purposes of paragraph (1), 
        the specified percentage shall be determined as follows:

``In the case of plan years                               The specified
beginning in calendar year:                              percentage is:
    1999..........................................                 109 
    2000..........................................                 108 
    2001..........................................                 107 
    2002..........................................                 106 
    2003..........................................                 105.
    ``(d) Treatment of Mortality Tables.--
            ``(1) Standard table.--In the case of plan years beginning 
        before the first plan year to which the first tables prescribed 
        under paragraph (2) apply, the mortality table used in 
        determining current liability of a multiemployer plan for 
        purposes of this subsection shall be the table prescribed by 
        the Secretary of Labor which must be based on the prevailing 
        standard table (described in section 807 of the Internal 
        Revenue Code of 1986) used by the Commissioner of Internal 
        Revenue to determine reserves for group annuity contracts 
        issued on January 1, 1993.
            ``(2) Secretarial authority.--The Secretary of Labor shall 
        by regulation prescribe mortality tables to be used in 
        determining current liability under this subsection for plan 
        years beginning after December 31, 2000. Such tables shall be 
        identical to those prescribed by the Secretary of the Treasury 
        under section 412(l)(7)(C)(ii)(II) of the Internal Revenue Code 
        of 1986.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Benefits.--The term `benefits' means all benefits to 
        participants and their beneficiaries under a multiemployer 
        plan.
            ``(2) Current liability.--The term `current liability' 
        means all liabilities to participants and their beneficiaries 
        under a multiemployer plan.
            ``(3) Unfunded current liability.--The term `unfunded 
        current liability' means, with respect to any plan year, the 
        excess (if any) of--
                    ``(A) the current liability under a multiemployer 
                plan, over
                    ``(B) the value of the assets of the plan 
                determined under section 302(c)(2), reduced by any 
                credit balance in the funding standard account.
        The Secretary of Labor may provide for such reduction for 
        purposes of any other provision which references this 
        paragraph.
            ``(4) Funded current liability percentage.--The term 
        `funded current liability percentage' means, with respect to 
        any plan year, the percentage which--
                    ``(A) the amount determined under paragraph (3)(B), 
                is of
                    ``(B) the current liability under the multiemployer 
                plan.
            ``(5) Asset deficient plan.--The term `asset deficient 
        plan' means, with respect to any plan year, a multiemployer 
        plan with a funded current liability percentage of 95 percent 
        or less.''
    (b) Conforming Amendment.--The table of sections for part 3 of 
subtitle B of title I of the Employee Retirement Income Security Act of 
1974 is amended by striking the item relating to section 308 and 
inserting the following:

``Sec. 308. Restrictions on asset deficient multiemployer plans.
``Sec. 309. Effective dates.''

SEC. 202. EXCEPTION TO RULE PROHIBITING DECREASE OF ACCRUED BENEFITS.

    Section 204(g)(1) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1054(g)(1)) is amended by inserting ``or an amendment 
which reduces an increase in accrued benefits resulting from an 
increase in benefits prohibited by section 308 (a) or (b)'' after 
``4281''.

SEC. 203. NOTICE TO PARTICIPANTS AND OTHERS OF MULTIEMPLOYER PLAN 
              FUNDING STATUS.

    Section 105 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1025) is amended by adding at the end the following:
    ``(e) Not later than 180 days after the close of each plan year, 
the trustees of a multiemployer plan shall provide to plan 
participants, beneficiaries, and employers contributing to the plan--
            ``(1) notice of the plan's funded current liability 
        percentage on the last day of the preceding plan year, and
            ``(2) notice of the limits on the Pension Benefit Guaranty 
        Corporation's guarantee should the plan become insolvent.
Such notice shall be written in a manner so as to be understood by the 
average plan participant.''

SEC. 204. EFFECTIVE DATE.

    The amendments made by this title shall apply to plan years 
beginning after December 31, 1998.

                    TITLE III--ACTUARIAL ASSUMPTIONS

SEC. 301. INTEREST RATE AND MORTALITY ASSUMPTIONS USED IN DETERMINING 
              WITHDRAWAL LIABILITY.

    (a) In General.--Section 4213(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1393(b)) is amended by redesignating 
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, by 
inserting ``(1)'' before ``In determining'', and by adding at the end 
the following new paragraph:
            ``(2) Effective for plan years beginning after December 31, 
        1998--
                    ``(A) Interest rate.--The rate of interest used to 
                determine an employer's withdrawal liability under this 
                part shall be the rate of interest determined under 
                section 308(c).
                    ``(B) Mortality tables.--The mortality table used 
                in determining an employer's withdrawal liability under 
                this part shall be the mortality table determined under 
                section 308(d) for determining current liability.''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1998.

                TITLE IV--ADMINISTRATION AND ENFORCEMENT

SEC. 401. ADMINISTRATION AND ENFORCEMENT REQUIREMENTS.

    Section 502(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1132(a)) is amended by striking ``or'' at the end of 
paragraph (8), by striking the period at the end of paragraph (9) and 
inserting ``, or'', and by adding at the end the following:
            ``(10) by an employer which contributes to a multiemployer 
        plan--
                    ``(A) to enjoin any act or practice which violates 
                any provision of section 308, 204(g)(1), or 105(e), or
                    ``(B) to obtain other appropriate equitable 
                relief--
                            ``(i) to redress such violations of such 
                        sections, or
                            ``(ii) to enforce any provision of such 
                        sections.''

SEC. 402. ATTORNEY'S FEES AND COSTS.

    Section 502(g) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1132(g)) is amended by adding at the end the following:
            ``(3) In any action under subsection (a)(10) by an 
        employer, the court in its discretion may allow a reasonable 
        attorney's fee and costs of action to either party.''

SEC. 403. CIVIL ACTIONS BY CORPORATION.

    Section 4003(e)(1) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1303(e)(1)) is amended by striking ``and'' before 
subparagraph (B) and by adding before the period at the end the 
following: ``, and (C) in the case of a multiemployer plan, sections 
308, 204(g)(1), 105(e), and 4213(b)(2).''

SEC. 404. EFFECTIVE DATE.

    The amendments made by this title shall apply to actions relating 
to acts or practices involving plan years beginning after December 31, 
1998.

       TITLE V--INCREASE IN MULTIEMPLOYER PLAN INSURANCE PREMIUMS

SEC. 501. INCREASE IN MULTIEMPLOYER PLAN INSURANCE PREMIUMS.

    (a) In General.--Section 4006(a)(3)(A) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is amended--
            (1) in clause (iii)--
                    (A) by inserting ``and before January 1, 1999,'' 
                before ``an amount'', and
                    (B) by striking the period at the end of subclause 
                (IV) and inserting ``, and'', and
            (2) by adding at the end the following:
                            ``(iv) in the case of a multiemployer plan, 
                        for plan years beginning after December 31, 
                        1998, an amount equal to--
                                    ``(I) $3.50 for each participant 
                                for plan years beginning in 1999,
                                    ``(II) $4.35 for each participant 
                                for plan years beginning in 2000, and
                                    ``(III) $5.20 for each participant 
                                for plan years beginning after December 
                                31, 2000.''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1998.