II 

109TH CONGRESS 

2D SESSION S. 2919 

To amend title IV of the Employee Retirement Income Security Act of 

1974 to establish a Director of the Pension Benefit Guaranty Corporation 

and the Internal Revenue Code of 1986 to increase certain penalties, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2006 

Mr. BAUCUS (for himself and Mr. GRASSLEY) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend title IV of the Employee Retirement Income Security Act of 1974 to establish a Director of the Pension 

Benefit Guaranty Corporation and the Internal Revenue 

Code of 1986 to increase certain penalties, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘PBGC Confirmation 

5 Act of 2006’’. 


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1 SEC. 2. DIRECTOR OF THE PENSION BENEFIT GUARANTY 

2 CORPORATION. 

3 (a) IN GENERAL.—Title IV of the Employee Retire4 ment Income Security Act of 1974 (29 U.S.C. 1301 et 

5 seq.) is amended— 

6 (1) by striking the second sentence of section 

7 4002(a) and inserting the following: ‘‘In carrying 

8 out its functions under this title, the corporation 

9 shall be administered by a Director, who shall be ap10 pointed by and with the advice and consent of the 

11 Senate and who shall act in accordance with the 

12 policies established by the board.’’; and 

13 (2) in section 4003(b), by— 

14 (A) striking ‘‘under this title, any mem15 ber’’ and inserting ‘‘under this title, the Direc16 tor, any member’’; and 

17 (B) striking ‘‘designated by the chairman’’ 

18 and inserting ‘‘designated by the Director or 

19 chairman’’. 

20 (b) COMPENSATION OF DIRECTOR.—Section 5315 of 

21 title 5, United States Code, is amended by adding at the 

22 end the following new item: 

23 ‘‘Director, Pension Benefit Guaranty Corporation.’’. 

24 (c) JURISDICTION OF NOMINATION.— 

25 (1) IN GENERAL.—The Committee on Finance 

26 of the Senate and the Committee on Health, EduVerDate Aug 31 2005 00:31 May 24, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2919.IS S2919

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1 cation, Labor, and Pensions of the Senate shall have 

2 joint jurisdiction over the nomination of a person 

3 nominated by the President to fill the position of Di4 rector of the Pension Benefit Guaranty Corporation 

5 under section 4002 of the Employee Retirement In6 come Security Act of 1974 (29 U.S.C. 1302) (as 

7 amended by this Act), and if one committee votes to 

8 order reported such a nomination, the other shall re9 port within 30 calendar days, or be automatically 

10 discharged. 

11 (2) RULEMAKING OF THE SENATE.—This sub12 section is enacted by Congress— 

13 (A) as an exercise of rulemaking power of 

14 the Senate, and as such it is deemed a part of 

15 the rules of the Senate, but applicable only with 

16 respect to the procedure to be followed in the 

17 Senate in the case of a nomination described in 

18 such sentence, and it supersedes other rules 

19 only to the extent that it is inconsistent with 

20 such rules; and 

21 (B) with full recognition of the constitu22 tional right of the Senate to change the rules 

23 (so far as relating the procedure of the Senate) 

24 at any time, in the same manner and to the 


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1 same extent as in the case of any other rule of 

2 the Senate. 

3 (d) TRANSITION.—The term of the individual serving 

4 as Executive Director of the Pension Benefit Guaranty 

5 Corporation on the date of enactment of this Act shall ex6 pire on such date of enactment. Such individual, or any 

7 other individual, may serve as interim Director of such 

8 Corporation until an individual is appointed as Director 

9 of such Corporation under section 4002 of the Employee 

10 Retirement Income Security Act of 1974 (29 U.S.C. 1302) 

11 (as amended by this Act). 

12 SEC. 3. PENALTY FOR FAILURE TO FILE AN ACTUARIAL RE13 PORT. 

14 Section 6692 of the Internal Revenue Code of 1986 

15 is amended by adding at the end the following: ‘‘Beginning 

16 with plan years beginning in 2005, in the case of a plan 

17 to which section 412(l) applied for a plan year, there shall 

18 be assessed, in lieu of the penalty in the preceding sen19 tence, a tax equal to 0.1 percent of the plan’s unfunded 

20 current liability under section 412(l)(8)(A) for the plan 

21 year to which the report relates, but in no case less than 

22 $1,000 or more than $5,000.’’. 

Æ 


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