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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2910 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2910

   To amend the Employee Retirement Income Security Act of 1974, the 
Internal Revenue Code of 1986, and the Labor Management Relations Act, 
     1947 to provide special rules for Teamster plans relating to 
                        termination and funding.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2003

  Mr. Tiberi introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
   To amend the Employee Retirement Income Security Act of 1974, the 
Internal Revenue Code of 1986, and the Labor Management Relations Act, 
     1947 to provide special rules for Teamster plans relating to 
                        termination and funding.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multiemployer Pension Security Act 
of 2003''.

SEC. 2. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974 RELATING TO TERMINATION INSURANCE PROGRAM.

    (a) Teamster Plan Defined.--Section 4001(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301(a)) is amended--
            (1) in paragraph (21), by striking the period at the end 
        and inserting ``; and''; and
            (2) by adding at the end the following new paragraph:
            ``(22) `teamster plan' means a plan--
                    ``(A) to which more than one employer is required 
                to contribute,
                    ``(B) which is maintained pursuant to one or more 
                collective bargaining agreements between The 
                International Brotherhood Teamsters, Chauffeurs, 
                Warehousemen and Helpers of America or its locals and 
                more than one employer, and
                    ``(C) which satisfies such other requirements as 
                the Secretary of Labor may prescribe by regulation.''.
    (b) Modification of Liability Provisions.--
            (1) Amounts payable by the corporation.--Section 4061 is 
        amended by striking ``subtitle B'' and inserting ``subtitles B 
        and G'' in the first sentence thereof and inserting ``or 
        subtitle G'' after ``4022A'' in the third sentence thereof.
            (2) Liability under distress termination or a termination 
        by the corporation.--Section 4062 is amended by inserting ``or 
        subtitle G'' after ``4041(c)'' in subsection (a) thereof.
    (c) Modification of Enforcement Provisions.--Section 4070 is 
amended--
            (1) by inserting ``AND TEAMSTER PLANS'' after ``SINGLE-
        EMPLOYER PLANS'' in the title thereof;
            (2) by inserting at the end of subsection (a) the following 
        flush sentence:
``A plan fiduciary, contributing sponsor, member of a contributing 
sponsor's controlled group, participant, or beneficiary who is 
adversely affected by the act or omission of any party (other than the 
corporation) under subtitle G with respect to a teamster plan, or an 
employee organization which represents such a plan participant or 
beneficiary for purposes of collective bargaining, may bring an action 
for appropriate legal or equitable relief, or both.'';
            (3) by inserting in each of subsections (a) and (b) ``or a 
        teamster plan'' after ``single-employer plan'' each time it 
        appears in each such subsection; and
            (4) by inserting ``, and in the case of a teamster plan, 
        where the defendant does business'' at the end of the second 
        sentence of subsection (c).
    (d) Special Provisions for Teamster Plans.--
            (1) In general.--Title IV of such Act is amended by adding 
        at the end the following new subtitle:

          ``Subtitle G--Special Provisions for Teamster Plans

``SEC. 4501. TREATMENT OF TEAMSTER PLANS.

    ``(a) General Rule.--For purposes of this title, a teamster plan 
shall not be treated as a multiemployer plan, and each employer that 
has an obligation to contribute to a teamster plan shall be treated as 
a contributing sponsor maintaining a separate single-employer plan, as 
provided in this subtitle.
    ``(b) Partition of Liabilities.--
            ``(1) In general.--As of the first day of the first plan 
        year for which this subtitle is effective, the transition 
        liabilities of each teamster plan shall be allocated among 
        those persons that are, as of such date, the contributing 
        employers of the plan, in accordance with this subsection.
            ``(2) Transition liabilities.--For purposes of this 
        subtitle, `transition liabilities' means the sum of--
                    ``(A) the accrued liability for the benefits under 
                the plan (as a whole, as if such plan were treated as a 
                single multiemployer plan rather than a collection of 
                single-employer plans but taking into account the 
                requirements of section 308) attributable as of the 
                first day of the first plan year for which this 
                subtitle is effective to participants who, as of such 
                date, are not employed in credited service for any 
                employer under such plan, and
                    ``(B) the accrued liability for the benefits under 
                the plan (as a whole, as if such plan were treated as a 
                single multiemployer plan rather than a collection of 
                single-employer plans but taking into account the 
                requirements of section 308) attributable, as of the 
                first day of the first plan year for which this 
                subtitle is effective, to the credited service of 
                participants (other than participants described in (A)) 
                with an employer that, as of such date, does not have 
                an obligation to contribute to the teamster plan.
            ``(3) Method of allocation.--
                    ``(A) Transition liabilities shall be allocated 
                under paragraph (1) with respect to each teamster plan 
                among those employers who have an obligation to make 
                contributions to such plan as of the first day of the 
                first plan year for which this subtitle is effective.
                    ``(B) Each employer's share of the transition 
                liabilities shall equal the product derived by 
                multiplying--
                            ``(i) the transition liabilities of the 
                        plan (as a whole, as if such plan were treated 
                        as a single multiemployer plan rather than a 
                        collection of single-employer plans, but taking 
                        into account the requirements of section 308), 
                        by
                            ``(ii) a percentage determined as of the 
                        first day of the first plan year for which this 
                        subtitle is effective by dividing--
                                    ``(I) the sum of the contributions 
                                required to be made under such plan by 
                                the employer for the 5 preceding plan 
                                years, by
                                    ``(II) the sum of the contributions 
                                required to be made by all such 
                                employers for the 5 preceding plan 
                                years.
            ``(4) Anticipation of benefit increases.--For purposes of 
        this subsection, in determining accrued liability, the funding 
        method of a plan shall anticipate benefit increases scheduled 
        to take effect during the term of the collective bargaining 
        agreement or agreements applicable to the plan.
    ``(c) Partition of Assets.--
            ``(1) In general.--As of the first day of the first plan 
        year for which this subtitle is effective, the assets of each 
        teamster plan shall be allocated among those persons who are, 
        as of such date, the contributing employers of the plan, in 
        accordance with this subsection.
            ``(2) Method of allocation.--The assets of the teamster 
        plan shall be allocated, based on fair market value as of the 
        first day of the first plan year for which this subtitle is 
        effective, among those employers who have, as of such date, an 
        obligation to contribute to the plan. The portion allocated to 
        each such employer shall be equal to the product derived by 
        multiplying--
                    ``(A) the funded percentage for the teamster plan, 
                by
                    ``(B) the employer's share of the accrued liability 
                for the plan (as a whole, as if such plan were treated 
                as a single multiemployer plan rather than a collection 
                of single-employer plans but taking into account the 
                requirements of section 308), as of such date.
            ``(3) Funded percentage.--For purposes of this subsection, 
        `funded percentage', in connection with a plan, means the 
        percentage obtained by dividing--
                    ``(A) the fair market value of plan assets (as a 
                whole, as if such plan were treated as a single 
                multiemployer plan rather than a collection of single-
                employer plans but taking into account the requirements 
                of section 308), including receivables, as of the first 
                day of the first plan year for which this subtitle is 
                effective, by
                    ``(B) the accrued liability for the plan (as a 
                whole, as if such plan were treated as a single 
                multiemployer plan rather than a collection of single-
                employer plans but taking into account the requirements 
                of section 308), as of such date.
            ``(4) Investment of plan assets.--The assets of a teamster 
        plan shall be invested by the trustees as one master trust and 
        each contributing employer's share of the assets of the plan 
        shall be adjusted annually according to master trust accounting 
        principles for the employer's plan contributions, benefit 
        payments with respect to its ongoing liability and transition 
        liability (if any), and share of investment returns and 
        administrative expenses.
            ``(5) Anticipation of benefit increases.--For purposes of 
        this subsection, in determining accrued liability, the funding 
        method of a plan shall anticipate benefit increases scheduled 
        to take effect during the term of the collective bargaining 
        agreement(s) applicable to the plan.
    ``(d) Single-Employer Plan Benefits Guaranteed.--Notwithstanding 
any limitations otherwise applicable under section 4022(b), the 
corporation shall guarantee 100 percent of the transition liabilities 
of each teamster plan.
    ``(e) Premium Rates.--
            ``(1) In general.--For purposes of section 4006--
                    ``(A) the premium rates charged by the corporation 
                for teamster plans shall be the same as the premium 
                rates charged by the corporation for single-employer 
                plans, and
                    ``(B) each employer that has an obligation to 
                contribute to a teamster plan shall be responsible for 
                paying the premiums attributable to the single-employer 
                plan the employer is treated as maintaining pursuant to 
                this subtitle.
            ``(2) Phase-in of additional premium.--The amount of the 
        additional premium determined under section 4006(a)(3)(E) with 
        respect to a teamster plan shall be phased in over 10 plan 
        years, beginning with the first plan year for which this 
        subtitle is effective, so that the additional premium shall 
        take effect during the 10-year period in annual increments 
        taking effect for each year, each of which is equal to 10 
        percent of the full increase that would otherwise apply for 
        such plan year, resulting in application of the full additional 
        premium effective with the final plan year in such period and 
        each plan year thereafter.
            ``(3) Contribution of premiums to teamster plan.--The 
        corporation may allow an employer to contribute all or part of 
        the additional premium determined under section 4006(a)(3)(E) 
        directly to the teamster plan, in lieu of payment to the 
        corporation, to the extent that the corporation determines in 
        its discretion that such contribution would be in the best 
interests of participants and beneficiaries.
    ``(f) Plan Termination.--
            ``(1) In general.--An employer that has an obligation to 
        contribute to a teamster plan may terminate its participation 
        in such plan in either a standard termination or a distress 
        termination, as provided in this subsection.
            ``(2) Standard termination.--An employer that has an 
        obligation to contribute to a teamster plan may terminate its 
        participation in such plan in a standard termination by 
        following procedures established by the corporation similar to 
        those that apply to a plan administrator in a standard 
        termination of a single-employer plan under section 4041. For 
        purposes of this paragraph, the employer shall be deemed to 
        have satisfied its obligations to the teamster plan if--
                    ``(A) the employer obtains an irrevocable 
                commitment from an insurer satisfactory to the 
                corporation to pay its benefit liabilities under such 
                plan, or
                    ``(B) the corporation agrees to assume the 
                employer's obligation to contribute to the plan and 
                make contributions under the teamster plan pursuant to 
                such terms and conditions as shall be satisfactory to 
                the corporation and the teamster plan.
            ``(3) Distress termination.--An employer that has an 
        obligation to contribute to a teamster plan may terminate its 
        participation in such plan in a distress termination by 
        following procedures established by the corporation similar to 
        those that apply to a plan administrator in a distress 
        termination of a single-employer plan under section 4041, 
        including meeting the necessary distress criteria under 
        principles similar to those described in section 4041(c)(2)(B).
            ``(4) Application of certain termination provisions.--Upon 
        an employer's termination of its participation in a teamster 
        plan in either a standard termination or a distress 
        termination, sections 4044, 4045, 4046, and 4050 shall apply to 
        the plan administrator of such plan in a manner consistent with 
        the treatment of such employer as a contributing sponsor of a 
        single-employer plan under this subtitle. The corporation may 
        institute termination proceedings against a teamster plan or an 
        employer's participation in a teamster plan under section 4042, 
        and the provisions of such section shall be applied to such 
        termination proceedings in a manner consistent with the 
        treatment of the teamster plan as a collection of single-
        employer plans.
            ``(5) Contribution of assets remaining after standard 
        termination to liabilities of other contributing employers.--
        Any assets that remain allocated under a teamster plan to an 
        employer after the termination of the employer's participation 
        in the plan in a standard termination under paragraph (2) shall 
        be applied on a pro rata basis toward satisfaction of the 
        benefit liabilities of the remaining employers that contribute 
        to the teamster plan based on such liabilities.
    ``(g) Obligation To Furnish Information.--The trustees of a 
teamster plan shall furnish to each employer that has an obligation to 
contribute to such plan, within 30 days of an employer's written 
request, such reports, records, documents, or other information as the 
employer reasonably determines are necessary to enable the employer to 
determine the liabilities and assets of the teamster plan attributable 
to such employer and to comply with such employer's funding obligations 
under section 308. The trustees shall be personally liable to an 
employer for any failure to furnish such information required to be 
furnished under this subsection and may in the court's discretion be 
liable to such employer in the amount of up to $100 a day from the date 
of such failure, and the court may in its discretion order such other 
relief as it deems proper. In any action under this subsection, the 
court in its discretion may allow a reasonable attorney's fee and costs 
of action to either party.''.
            (2) Clerical amendment.--The table of contents in section 1 
        of such Act is amended--
                    (A) by amending the item relating to section 4070 
                to read as follows:

``Sec. 4070. Enforcement authority relating to terminations of single-
                            employer plans and teamster plans.'';
                and
                    (B) by adding at the end the following new items:

          ``Subtitle G--Special Provisions for Teamster Plans

``Sec. 4501. Treatment of teamster plans.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2003.

SEC. 3. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT 
              RELATING TO FUNDING REQUIREMENTS.

    (a) Notice Requirement Relating to Failure To Meet Minimum Funding 
Standard.--Section 101(d) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1021(d)) is amended by adding at the end the 
following new paragraph:
            ``(4) Teamster plans.--For purposes of this subsection, 
        effective as of the funding effective date (as defined in 
        section 308(b)(11)), a teamster plan (as defined in section 
        4001(a)(22)) shall not be treated as a multiemployer plan, and 
        each employer that has an obligation to contribute to a 
        teamster plan shall be treated as an employer maintaining a 
        separate single-employer plan, as provided in section 308.''.
    (b) Rule Relating to Prohibition on Benefit Increases While Sponsor 
in Bankruptcy.--Section 204(i) of such Act (29 U.S.C. 1054(i)) is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Special rule for teamster plans.--For purposes of 
        this subsection, a teamster plan (as defined in section 
        4001(a)(22)) shall not be treated as a multiemployer plan. This 
        subsection shall be applied separately with respect to each 
        employer that has an obligation to contribute to a teamster 
        plan, and the funded current liability percentage for purposes 
of paragraph (3) shall be determined in accordance with section 308.''.
    (c) Special Funding Rules for Teamster Plans.--
            (1) In general.--Part 3 of subtitle B of title I of such 
        Act is amended--
                    (A) by redesignating section 308 (29 U.S.C. 1086) 
                as section 309; and
                    (B) by inserting after section 307 (29 U.S.C. 
                1085b) the following new section:

``SEC. 308. TEAMSTER PLANS.

    ``(a) In General.--For purposes of this part other than section 
302(d), a teamster plan within the meaning of section 4001(a)(22) shall 
not be treated as a multiemployer plan, and each employer that has an 
obligation to contribute to a teamster plan shall be treated as a 
contributing sponsor maintaining a single-employer plan, subject to the 
special rules of subsection (b).
    ``(b) Special Rules.--
            ``(1) Funding standard account.--A funding standard account 
        shall be established and maintained for each employer that has 
        an obligation to contribute to a teamster plan. In determining 
        the funding standard account under section 302(b) for each such 
        employer--
                    ``(A) subsections (b)(2)(B)(i) and (b)(2)(B)(ii) of 
                section 302 shall not apply;
                    ``(B) in the case of a teamster plan in effect on 
                the first day of the first plan year for which this 
                section is effective, the funding standard account 
                shall be charged with--
                            ``(i) the amount necessary to amortize in 
                        equal annual installments (until fully 
                        amortized) the employer's unfunded past service 
                        liability over a period of 30 plan years, and
                            ``(ii) the amount necessary to amortize 
                        over a period of 10 plan years in equal annual 
                        installments (until fully amortized) the credit 
                        determined under section 308(b)(1)(C)(ii) for 
                        the immediately preceding plan year; and
                    ``(C) in the case of a teamster plan in effect on 
                the first day of the first plan year for which this 
                section is effective, the funding standard account 
                shall be credited with--
                            ``(i) the amount necessary to amortize in 
                        equal annual installments (until fully 
                        amortized) the excess (if any) of the 
                        employer's initial market value of assets over 
                        the employer's teamster plan accrued liability 
                        determined as of the first day of the first 
                        plan year for which this section is effective, 
                        over a period of 30 plan years, and
                            ``(ii) for an employer who has made its 
                        negotiated contribution for a plan year 
                        beginning after December 31, 2003, and before 
                        the funding effective date, the excess (if any) 
                        of--
                                    ``(I) the minimum funding 
                                requirement determined under this 
                                section for such plan year, over
                                    ``(II) the actual contribution made 
                                to the plan for any such plan year.
            ``(2) Valuation of assets.--For purposes of section 
        302(c)(2)(A), the actuarial value of assets of a teamster plan 
        as of the first day of the first plan year for which this 
        section is effective shall be the fair market value of such 
        assets as of such date. The value of the assets attributable to 
        each employer shall be adjusted annually according to 
        principles of master trust accounting for the employer's plan 
        contributions, investment income (and loss), the employer's 
        benefit payments with respect to its ongoing liability and 
        transition liability (if any), and the employer's share of 
        administrative expenses. Prospective investment experience may 
        be reflected in accordance with section 302(c)(2) or any 
        applicable regulations issued by the Secretary of the Treasury.
            ``(3) Election with respect to bonds.--The special election 
        described in section 302(c)(2)(B) shall not apply.
            ``(4) Certain retroactive plan amendments.--Notwithstanding 
        any other provision of this section, a teamster plan shall be 
        treated as a multiemployer plan for purposes of section 
        302(c)(8)(A).
            ``(5) Benefits may not be increased unless teamster plan is 
        sufficiently funded.--In addition to the requirements of 
        section 304(b)(1), no amendment of a teamster plan which 
        increases the liabilities of the plan with respect to an 
        employer by reason of any increase in benefits, any change in 
        the accrual of benefits, or any change in the rate at which 
        benefits become nonforfeitable under the plan shall be adopted 
        and no increase in benefits attributable to an existing 
        provision of a teamster plan (other than an increase that 
        results solely from an increase in a participant's 
        compensation, age or service or other similar factor), 
        including an increase in benefits attributable to an increase 
        in the negotiated contribution, shall take effect unless at the 
        time such increase otherwise would be effective--
                    ``(A) the percentage determined by dividing--
                            ``(i) the lesser of the fair market value 
                        of the assets and the actuarial value of the 
                        assets attributable to the employer for the 
                        plan year in which the increase otherwise would 
                        be effective, by
                            ``(ii) the employer's teamster plan current 
                        liability (determined using the highest rate of 
                        interest which is allowable for the plan year 
                        under section 302(d)(7)(C)) for the plan year 
                        in which the increase otherwise would be 
                        effective,
                is at least 90 percent, and
                    ``(B) the percentage determined by dividing--
                            ``(i) the amount described in subparagraph 
                        (A)(i), by
                            ``(ii) the sum of--
                                    ``(I) the amount described in 
                                subparagraph (A)(ii), and
                                    ``(II) the increase in the present 
                                value of future service benefits 
                                (taking into account the amendment or 
                                other circumstance resulting in such 
                                increase), determined using the highest 
                                rate of interest which is allowable for 
                                the plan year under section 302(d)(7)C) 
                                and the mortality assumptions required 
                                under section 302(d)(7)(C), for the 
                                plan year in which the increase 
                                otherwise would be effective.
                is at least 75 percent.
            ``(6) Additional funding requirements for teamster plans.--
                    ``(A) For any plan year beginning on or after 
                January 1, 2004, and before January 1, 2034, the amount 
                charged to the funding standard account for the plan 
                year shall be increased by the amount which, after 
                taking into account charges and credits under section 
                302(b), is necessary to increase the funded current 
                liability percentage at the end of the plan year 
                (taking into account the expected change in current 
                liability due to benefits and interest accruing during 
                the plan year, expected disbursements during the plan 
                year, and the change in the market value of assets due 
                to interest and expected disbursements during the plan 
                year) for the plan year to a percentage equal to the 
                sum of--
                            ``(i) the funded current liability 
                        percentage at the beginning of the plan year, 
                        and
                            ``(ii) the lesser of 4 percent or the 
                        percentage determined by dividing--
                                    ``(I) the excess of 90 percent over 
                                the funded current liability percentage 
                                as of the beginning of the plan year, 
                                by
                                    ``(II) 30 minus the number of plan 
                                years completed since the last plan 
                                year beginning before January 1, 2004.
                    ``(B) For any plan year beginning on or after 
                January 1, 2034, the amount charged to the funding 
                standard account for the plan year shall be increased 
                by the amount which, after taking into account charges 
                and credits under section 302(b), is necessary to 
                increase the funded current liability percentage at the 
                end of the plan year (taking into account the expected 
                change in current liability due to benefits and 
                interest accruing during the plan year, expected 
                disbursements during the plan year, and the change in 
                the market value of assets due to interest and expected 
                disbursements during the plan year) for the plan year 
                to the lesser of--
                            ``(i) 90 percent, and
                            ``(ii) the sum of the funded current 
                        liability percentage at the beginning of the 
                        plan year and 4 percent.
                    ``(C) The term ``funded current liability 
                percentage'' means, with respect to any employer for 
                any plan year, the percentage which--
                            ``(i) the lesser of the fair market value 
                        of the assets and the actuarial value of the 
                        assets attributable to the employer for the 
                        plan year, is of
                            ``(ii) the employer's teamster plan current 
                        liability.
            ``(7) Special rules for small teamster plans.--
                    ``(A) Paragraph (6) shall not apply to any teamster 
                plan for any plan year if on each day during the 
                preceding plan year such plan had no more than 100 
                participants.
                    ``(B) In the case of a teamster plan to which 
                subparagraph (A) does not apply and which on each day 
                during the preceding plan year had no more than 150 
                participants, the amount of the increase under 
                paragraph (6) for such plan year shall be equal to the 
                product of--
                            ``(i) such increase determined without 
                        regard to this subparagraph, multiplied by
                            ``(ii) 2 percent for the highest number of 
                        participants in excess of 100 on any such day.
                    ``(C) For purposes of this paragraph, all teamster 
                plans maintained by the same employer (or any member of 
                such employer's controlled group) shall be treated as 1 
                plan, but only employees of such employer or member 
                shall be taken into account.
            ``(8) Benefits may not be increased by reason of minimum 
        required contribution.--A teamster plan may not provide for any 
        increase in a participant's benefit attributable to an increase 
        in the minimum contributions determined under this section for 
        any plan year to the extent such minimum contributions exceed 
        the negotiated contributions for such plan year.
            ``(9) Definitions.--For purposes of this section--
                    ``(A) Unfunded past service liability.--The term 
                `unfunded past service liability' means, with respect 
                to each employer who, as of the first day of the first 
                plan year for which this section is effective, has an 
                obligation to contribute to a teamster plan, the excess 
                of the employer's teamster plan accrued liability 
                determined as of such date over the employer's initial 
                market value of assets.
                    ``(B) Teamster plan accrued liability.--The term 
                `teamster plan accrued liability' means, with respect 
                to each employer who has an obligation to contribute to 
                a teamster plan, the sum of the employer's transition 
                liability (if any) and the employer's ongoing 
                liability.
                    ``(C) Transition liability.--The term `transition 
                liability' means, with respect to each employer who, as 
                of the first day of the first plan year for which this 
section is effective, has an obligation to contribute to a teamster 
plan, the product of--
                            ``(i) the sum of
                                    ``(I) the accrued liability for the 
                                benefits under the plan (as a whole, as 
                                if such plan were treated as a single 
                                multiemployer plan rather than a 
                                collection of single-employer plans but 
                                taking into account the requirements of 
                                this section) attributable as of the 
                                first day of the first plan year for 
                                which this section is effective to 
                                participants who as of such date are 
                                not employed in credited service for 
                                any employer, and
                                    ``(II) the accrued liability for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this section) 
                                attributable as of the first day of the 
                                first plan year which this section is 
                                effective to the credited service of 
                                participants (other than participants 
                                described in (I)) with an employer that 
                                does not have an obligation to 
                                contribute to the teamster plan as of 
                                such date, and
                            ``(ii) the percentage determined as of the 
                        first day of the first plan year for which this 
                        section is effective by dividing the sum of the 
                        contributions required to be made under such 
                        plan by the employer for the 5 preceding plan 
                        years by the sum of the contributions required 
                        to be made by all such employers for the 5 
                        preceding plan years.
                    ``(D) Ongoing liability.--The term `ongoing 
                liability' means, with respect to each employer, the 
                accrued liability for benefits under a teamster plan 
                attributable to credited service with the employer for 
                those participants who are employed in credited service 
                with any employer at any time on or after the first day 
                of the first plan year for which this section is 
                effective.
                    ``(E) Teamster plan current liability.--The term 
                `teamster plan current liability' means, with respect 
                to each employer who has an obligation to contribute to 
                a teamster plan, the sum of the employer's transition 
                current liability (if any) and the employer's ongoing 
                current liability.
                    ``(F) Transition current liability.--The term 
                `transition current liability' means, with respect to 
                each employer who, as of the first day of the first 
                plan year for which this section is effective, has an 
                obligation to contribute to a teamster plan, the 
                product of--
                            ``(i) the sum of--
                                    ``(I) the current liability (as 
                                defined under section 302(d)(7)) for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this section) 
                                attributable, as of the first day of 
                                the first plan year for which this 
                                section is effective, to participants 
                                who as of such date are not employed in 
                                credited service for any employer, and
                                    ``(II) the current liability (as 
                                defined under section 302(d)(7)) for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this section) 
                                attributable, as of the first day of 
                                the first plan year for which this 
                                section is effective section, to the 
                                credited service of participants (other 
                                than participants described in (I))) 
                                with an employer that does not have an 
                                obligation to contribute to the 
                                teamster plan as of such date, and
                            ``(ii) the percentage determined as of the 
                        first day of the first plan year for which this 
                        section is effective by dividing the sum of the 
                        contributions required to be made under such 
                        plan by the employer for the 5 preceding plan 
                        years by the sum of the contributions required 
                        to be made by all such employers for the 5 
                        preceding plan years.
                    ``(G) Ongoing current liability.--The term `ongoing 
                current liability' means, with respect to each 
                employer, the current liability (as defined under 
                section 302(d)(7)) for benefits under a teamster plan 
                attributable to credited service with the employer for 
                those participants who are employed in credited service 
                with any employer at any time on or after the first day 
                of the first plan year for which this section is 
                effective date of this section.
                    ``(H) Employer's initial market value of assets.--
                The term `employer's initial market value of assets' 
                means, with respect to each employer who (as of the 
                first day of the first plan year for which this section 
                is effective) has an obligation to contribute to a 
                teamster plan, the product, determined as of the first 
                day of the first plan year for which this section is 
                effective, of the funded percentage for the teamster 
                plan as of such date and the employer's teamster plan 
                accrued liability as of such date.
                    ``(I) Funded percentage.--The term `funded 
                percentage' means, for each teamster plan, the amount 
                determined by dividing the fair market value of the 
                assets of the teamster plan (as a whole, as if such 
plan were treated as a single multiemployer plan rather than a 
collection of single-employer plans but taking into account the rules 
of this section), including receivables, as of the first day of the 
first plan year for which this section is effective, by the teamster 
plan accrued liability for the plan (as a whole, as if such plan were 
treated as a single multiemployer plan rather than a collection of 
single-employer plans but taking into account the rules of this 
section) as of such date.
                    ``(J) Anticipation of future benefit increases.--
                For purposes of subparagraphs (A), (B), (C), (D), and 
                (I) in determining accrued liability, the funding 
                method of a plan shall anticipate benefit increases 
                scheduled to take effect during the term of the 
                collective bargaining agreement(s) applicable to the 
                plan.
            ``(10) Employer.--
                    ``(A) For purposes of this section, all employees 
                of all corporations which are members of a controlled 
                group of corporations (within the meaning of section 
                1563(a) of the Internal Revenue Code of 1986, 
                determined without regard to section 1563(a)(4) and 
                (e)(3(C) of such Code) shall be treated as employed by 
                a single employer.
                    ``(B) For purposes of this section, under 
                regulations prescribed by the Secretary of the 
                Treasury, all employees of trades or businesses 
                (whether or not incorporated) which are under common 
                control shall be treated as employed by a single 
                employer. The regulations prescribed under this 
                subparagraph shall be based on principles similar to 
                the principles which apply in the case of subparagraph 
                (A).
            ``(11) Effective date.--
                    ``(A) In general.--This section shall apply to plan 
                years beginning after December 31, 2003.
                    ``(B) Periods before funding effective date.--
                            ``(i) In general.--Notwithstanding any 
                        contrary provision, prior to the funding 
                        effective date, an employer shall not be 
                        required to make the minimum contributions 
                        determined under this section and shall not be 
                        treated as maintaining a single-employer plan 
                        for purposes of subsections (e) and (f) of 
                        section 302.
                            ``(ii) For purposes of this subparagraph, 
                        the term `funding effective date' means, with 
                        respect to each employer, the earlier of--
                                    ``(I) the date on which the last 
                                collective bargaining agreement 
                                ratified before January 1, 2004 
                                terminates (determined without regard 
                                to any extension thereof after January 
                                1, 2004), and
                                    ``(II) January 1, 2009.
                            ``(iii) Special rule.--An employer shall 
                        not be treated as having an accumulated funding 
                        deficiency prior to the funding effective date 
                        solely by reason of failing to make the minimum 
                        contributions determined under this section, 
                        provided such employer makes its negotiated 
                        contributions.''.
            (2) Clerical amendment.--The table of contents in section 1 
        of such Act is amended by striking the item relating to 
        sections 308 and inserting the following new items:

``Sec. 308. Teamster plans.
``Sec. 309. Effective dates.''.
    (d) Effective Date.--Except as otherwise provided herein, the 
amendments made by this section shall apply to plan years beginning 
after December 31, 2003.

SEC. 4. CONFORMING AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.

    (a) Teamster Plans Not Multiemployer Plan For Purposes of Security 
Requirement.--Section 401(a)(29) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subparagraph:
                    ``(F) Teamster plans.--For purposes of this 
                paragraph, effective as of the funding effective date 
                as defined in section 412(o)(10), a teamster plan (as 
                defined in section 4001(a)(22) of the Employee 
                Retirement Income Security Act of 1974) shall not be 
                treated as a multiemployer plan, and each employer that 
                has an obligation to contribute to a teamster plan 
                shall be treated as a contributing sponsor maintaining 
                a single-employer plan in accordance with section 
                412(o).''.
    (b) Rule Relating to Prohibition on Benefit Increases While Sponsor 
in Bankruptcy.--Section 401(a)(33) of such Code is amended by 
redesignating subparagraph (D) as subparagraph (E) and by inserting 
after subparagraph (C) the following new subparagraph:
                    ``(D) Special rule for teamster plans.--For 
                purposes of this paragraph, a teamster plan (as defined 
                in section 4001(a)(22) of the Employee Retirement 
                Income Security Act of 1974) shall not be treated as a 
                multiemployer plan. This paragraph shall be applied 
                separately with respect to each employer that has an 
                obligation to contribute to a teamster plan, and the 
                funded current liability percentage for purposes of 
                subparagraph (B) shall be determined in accordance with 
                section 412(o).''.
    (c) Rules Relating to Deductibility of Contributions.--
            (1) In general.--Section 404(a)(1) of such Code is amended 
        by adding at the end thereof the following subparagraph:
                    ``(F) Special rule for teamster plans.--
                Notwithstanding any other provision of this subchapter, 
                in the case of any teamster plan (as defined in section 
                4001(a)(22) of the Employee Retirement Income Security 
                Act of 1974), the maximum amount deductible under the 
limitations of this paragraph for a plan year by an employer obligated 
to make contributions to such plan for such year shall not be less than 
the minimum contribution required by such employer for such year under 
section 412(o).''.
            (2) Limitation on deductions where combination of defined 
        contribution plan and defined benefit plan.--Section 404(a)(7) 
        is amended by inserting after subparagraph (D) the following 
        new subparagraph:
                    ``(E) Teamster plans.--Subparagraph (A) shall not 
                apply to that portion of the employer's contribution to 
                a teamster plan (as defined in section 4001(a)(22) of 
                the Employee Retirement Income Security Act of 1974) to 
                the extent such contribution is required as a result of 
                charges to the funding standard account described in 
                section 412(o)(2)(B) or 412(o)(7).''.
    (d) Special Rules for Teamster Plans.--Section 412 of such Code is 
amended by adding at the end the following new subsection:
    ``(o) Teamster Plans.--
            ``(1) In general.--For purposes of this section other than 
        subsection (l), a teamster plan (as defined in section 
        4001(a)(22) of the Employee Retirement Income Security Act of 
        1974) shall not be treated as a multiemployer plan, and each 
        employer that has an obligation to contribute to a teamster 
        plan shall be treated as a contributing sponsor maintaining a 
        single-employer plan, subject to the special rules of this 
        subsection.
            ``(2) Funding standard account.--A funding standard account 
        shall be established and maintained for each employer that has 
        an obligation to contribute to a teamster plan. In determining 
        the funding standard account under subsection (b) for each such 
        employer--
                    ``(A) subsections (b)(2)(B)(i) and (b)(2)(B)(ii) 
                shall not apply;
                    ``(B) in the case of a teamster plan in effect on 
                the first day of the first plan year for which this 
                subsection is effective, the funding standard account 
                shall be charged with--
                            ``(i) the amount necessary to amortize in 
                        equal annual installments (until fully 
                        amortized) the employer's unfunded past service 
                        liability, over a period of 30 plan years, and
                            ``(ii) the amount necessary to amortize 
                        over a period of 10 plan years in equal annual 
                        installments (until fully amortized) the credit 
                        determined under section 412(o)(2)(C)(ii) for 
                        the immediately preceding plan year; and
                    ``(C) in the case of a teamster plan in effect on 
                the first day of the first plan year for which this 
                subsection is effective, the funding standard account 
                shall be credited with--
                            ``(i) the amount necessary to amortize in 
                        equal annual installments (until fully 
                        amortized) the excess (if any) of the 
                        employer's initial market value of assets over 
                        the employer's teamster plan accrued liability 
                        determined as of the first day of the first 
                        plan year for which this subsection is 
                        effective, over a period of 30 plan years; and
                            ``(ii) for an employer who has made its 
                        negotiated contribution for a plan year 
                        beginning after December 31, 2003 and before 
                        the funding effective date, the excess (if any) 
                        of--
                                    ``(I) the minimum funding 
                                requirement determined under this 
                                section for such plan year, over
                                    ``(II) the actual contribution made 
                                to the plan for any such plan year.
            ``(3) Valuation of assets.--For purposes of subsection 
        (c)(2)(A), the actuarial value of assets of a teamster plan as 
        of the first day of the first plan year for which this 
        subsection is effective shall be the fair market value of such 
        assets as of such date. The value of the assets attributable to 
        each employer shall be adjusted annually according to 
        principles of master trust accounting for the employer's plan 
        contributions, investment income (and loss), the employer's 
        benefit payments with respect to its ongoing liability and 
        transition liability (if any), and the employer's share of 
        administrative expenses. Prospective investment experience may 
        be reflected in accordance with subsection (c)(2) or any 
        applicable regulations issued by the Secretary.
            ``(4) Election with respect to bonds.--The special election 
        described in subsection (c)(2)(B) shall not apply.
            ``(5) Certain retroactive plan amendments.--Notwithstanding 
        any other provision of this subsection, a teamster plan shall 
        be treated as a multiemployer plan for purposes of subsection 
        (c)(8)(A).
            ``(6) Benefits may not be increased unless teamster plan is 
        sufficiently funded.--In addition to the requirements of 
        subsection (f)(1), no amendment of a teamster plan which 
        increases the liabilities of the plan with respect to an 
        employer by reason of any increase in benefits, any change in 
        the accrual of benefits, or any change in the rate at which 
        benefits become nonforfeitable under the plan shall be adopted 
        and no increase in benefits attributable to an existing 
        provision of a teamster plan (other than an increase that 
        results solely from an increase in a participant's 
        compensation, age or service or other similar factor), 
        including an increase in benefits attributable to an increase 
        in the negotiated contribution, shall take effect unless at the 
        time such increase otherwise would be effective--
                    ``(A) the percentage determined by dividing--
                            ``(i) the lesser of the fair market value 
                        of the assets and the actuarial value of the 
                        assets attributable to the employer for the 
                        plan year in which the increase otherwise would 
                        be effective, by
                            ``(ii) the employer's teamster plan current 
                        liability (determined using the highest rate of 
                        interest which is allowable for the plan year 
                        under subsection (l)(7)(C)) for the plan year 
                        in which the increase otherwise would be 
                        effective,
                is at least 90 percent, and
                    ``(B) the percentage determined by dividing--
                            ``(i) the amount described in subparagraph 
                        (A)(i), by
                            ``(ii) the sum of--
                                    ``(I) the amount described in 
                                subparagraph (A)(ii), and
                                    ``(II) the increase in the present 
                                value of future service benefits 
                                (taking into account the amendment or 
                                other circumstance resulting in such 
                                increase), determined using the highest 
                                rate of interest which is allowable for 
                                the plan year under subsection (l)(7)C) 
                                and the mortality assumptions required 
                                under subsection (l)(7)(C), for the 
                                plan year in which the increase 
                                otherwise would be effective.
                is at least 75 percent.
            ``(7) Additional funding requirements for teamster plans.--
                    ``(A) For any plan year beginning on or after 
                January 1, 2004, and before January 1, 2034, the amount 
                charged to the funding standard account for the plan 
                year shall be increased by the amount which, after 
                taking into account charges and credits under 
                subsection (b), is necessary to increase the funded 
                current liability percentage at the end of the plan 
                year (taking into account the expected change in 
                current liability due to benefits and interest accruing 
                during the plan year, expected disbursements during the 
                plan year, and the change in the market value of assets 
                due to interest and expected disbursements during the 
                plan year) for the plan year to a percentage equal to 
                the sum of--
                            ``(i) the funded current liability 
                        percentage at the beginning of the plan year, 
                        and
                            ``(ii) the lesser of 4 percent or the 
                        percentage determined by dividing--
                                    ``(I) the excess of 90 percent over 
                                the funded current liability percentage 
                                as of the beginning of the plan year, 
                                by
                                    ``(II) 30 minus the number of plan 
                                years completed since the last plan 
                                year beginning before January 1, 2004.
                    ``(B) For any plan year beginning on or after 
                January 1, 2034, the amount charged to the funding 
                standard account for the plan year shall be increased 
                by the amount which, after taking into account charges 
                and credits under subsection (b), is necessary to 
                increase the funded current liability percentage at the 
                end of the plan year (taking into account the expected 
                change in current liability due to benefits and 
                interest accruing during the plan year, expected 
                disbursements during the plan year, and the change in 
                the market value of assets due to interest and expected 
                disbursements during the plan year) for the plan year 
                to the lesser of--
                            ``(i) 90 percent, and
                            ``(ii) the sum of the funded current 
                        liability percentage at the beginning of the 
                        plan year and 4 percent.
                    ``(C) For purposes of this paragraph, the term 
                `funded current liability percentage' means, with 
                respect to any plan year, the percentage which--
                            ``(i) the lesser of the fair market value 
                        of the assets and the actuarial value of the 
                        assets attributable to the employer for the 
                        plan year, is of
                            ``(ii) the employer's teamster plan current 
                        liability.
            ``(8) Special rules for small teamster plans.--
                    ``(A) Paragraph (7) shall not apply to any teamster 
                plan for any plan year if on each day during the 
                preceding plan year such plan had no more than 100 
                participants.
                    ``(B) In the case of a teamster plan to which 
                subparagraph (A) does not apply and which on each day 
                during the preceding plan year had no more than 150 
                participants, the amount of the increase under 
                paragraph (7) for such plan year shall be equal to the 
                product of--
                            ``(i) such increase determined without 
                        regard to this subparagraph, multiplied by
                            ``(ii) 2 percent for the highest number of 
                        participants in excess of 100 on any such day.
                    ``(C) For purposes of this paragraph, all teamster 
                plans maintained by the same employer (or any member of 
                such employer's controlled group) shall be treated as 1 
                plan, but only employees of such employer or member 
                shall be taken into account.
            ``(9) Benefits may not be increased by reason of minimum 
        required contribution.--A teamster plan may not provide for any 
        increase in a participant's benefit attributable to an increase 
        in the minimum contributions determined under this subsection 
        for any plan year to the extent such minimum contributions 
        exceed the negotiated contributions for such plan year.
            ``(10) Definitions.--For purposes of this subsection--
                    ``(A) Unfunded past service liability.--The term 
                `unfunded past service liability' means, with respect 
to each employer who (as of the first day of the first plan year for 
which this subsection is effective) has an obligation to contribute to 
a teamster plan, the excess of the employer's teamster plan accrued 
liability as of such date over the employer's initial market value of 
assets.
                    ``(B) Teamster plan accrued liability.--The term 
                `teamster plan accrued liability' means, with respect 
                to each employer who has an obligation to contribute to 
                a teamster plan, the sum of the employer's transition 
                liability (if any) and the employer's ongoing 
                liability.
                    ``(C) Transition liability.--The term `transition 
                liability' means, with respect to each employer who, as 
                of the first day of the first plan year for which this 
                subsection is effective, has an obligation to 
                contribute to a teamster plan, the product of--
                            ``(i) the sum of--
                                    ``(I) the accrued liability for the 
                                benefits under the plan (as a whole, as 
                                if such plan were treated as a single 
                                multiemployer plan rather than a 
                                collection of single-employer plans but 
                                taking into account the requirements of 
                                this subsection) attributable, as of 
                                the first day of the first plan year 
                                for which this subsection is effective, 
                                to participants who as of such 
                                effective date are not employed in 
                                credited service for any employer, and
                                    ``(II) the accrued liability for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this subsection) 
                                attributable as of the first day of the 
                                first plan year for which, this 
                                subsection is effective, to the 
                                credited service of participants (other 
                                than participants described in 
                                subclause (I)) with an employer that 
                                does not have an obligation to 
                                contribute to the teamster plan as of 
                                such date, and
                            ``(ii) the percentage determined as of the 
                        first day of the first plan year for which this 
                        subsection is effective by dividing the sum of 
                        the contributions required to be made under 
                        such plan by the employer for the 5 preceding 
                        plan years by the sum of the contributions 
                        required to be made by all such employers for 
                        the 5 preceding plan years.
                    ``(D) Ongoing liability.--The term `ongoing 
                liability' means, with respect to each employer, the 
                accrued liability for benefits under a teamster plan 
                attributable to credited service with the employer for 
                those participants who are employed in credited service 
                with any employer at any time on or after the first day 
                of the first plan year for which this section is 
                effective.
                    ``(E) Teamster plan current liability.--The term 
                `teamster plan current liability' means, with respect 
                to each employer who has an obligation to contribute to 
                a teamster plan, the sum of the employer's transition 
                current liability (if any) and the employer's ongoing 
                current liability.
                    ``(F) Transition current liability.--The term 
                `transition current liability' means, with respect to 
                each employer who, as of the first day of the first 
                plan year for which this subsection is effective, has 
                an obligation to contribute to a teamster plan the 
                product of--
                            ``(i) the sum of--
                                    ``(I) the current liability (as 
                                defined under subsection (l)(7)) for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this subsection) 
                                attributable as of the first day of the 
                                first plan year for which this 
                                subsection is effective to participants 
                                who as of such effective date are not 
                                employed in credited service for any 
                                employer, and
                                    ``(II) the current liability (as 
                                defined under subsection (l)(7)) for 
                                the benefits under the plan (as a 
                                whole, as if such plan were treated as 
                                a single multiemployer plan rather than 
                                a collection of single-employer plans 
                                but taking into account the 
                                requirements of this subsection) 
                                attributable as of the first day of the 
                                first plan year for which this 
                                subsection is effective to the credited 
                                service of participants (other than 
                                participants described in subclause 
                                (I)) with an employer that does not 
                                have an obligation to contribute to the 
                                teamster plan as of such date, and
                            ``(ii) the percentage determined as of the 
                        first day of the first plan year for which this 
                        subsection is effective by dividing the sum of 
                        the contributions required to be made under 
                        such plan by the employer for the 5 preceding 
                        plan years by the sum of the contributions 
                        required to be made by all such employers for 
                        the 5 preceding plan years.
                    ``(G) Ongoing current liability.--The term `ongoing 
                current liability' means, with respect to each 
                employer, the current liability (as defined under 
                subsection (l)(7)) for benefits under a teamster plan 
                attributable to credited service with the employer for 
                those participants who are employed in credited service 
                with any employer at any time on or after the first 
day of the first plan year for which this subsection is effective.
                    ``(H) Employer's initial market value of assets.--
                The term `employer's initial market value of assets' 
                means with respect to each employer who, as of the 
                first day of the first plan year for which this 
                subsection is effective, has an obligation to 
                contribute to a teamster plan, the product determined 
                as of the first day of the first plan year for which 
                this subsection is effective of the funded percentage 
                for the teamster plan as of such date and the 
                employer's teamster plan accrued liability as of such 
                date.
                    ``(I) Funded percentage.--The term `funded 
                percentage' means, for each teamster plan, the amount 
                determined by dividing--
                            ``(i) the fair market value of the assets 
                        of the teamster plan (as a whole, as if such 
                        plan were treated as a single multiemployer 
                        plan rather than a collection of single-
                        employer plans but taking into account the 
                        requirements of this subsection) including 
                        receivables, as of the first day of the first 
                        plan year for which this subsection is 
                        effective, by
                            ``(ii) the teamster plan accrued liability 
                        for the plan (as a whole, as if such plan were 
                        treated as a single multiemployer plan rather 
                        than a collection of single-employer plans but 
                        taking into account the requirements of this 
                        subsection), as of such date.
                    ``(J) Anticipation of future benefit increases.--
                For purposes of subparagraphs (A), (B), (C), (D), and 
                (I) in determining accrued liability, the funding 
                method of a plan shall anticipate benefit increases 
                scheduled to take effect during the term of the 
                collective bargaining agreement(s) applicable to the 
                plan.
            ``(11) Effective date.--
                    ``(A) In general.--This subsection shall apply to 
                plan years beginning after December 31, 2003.
                    ``(B) Periods before funding effective date.--
                            ``(i) In general.--Notwithstanding any 
                        contrary provision, prior to the funding 
                        effective date, an employer shall not be 
                        required to make the minimum contributions 
                        determined under this subsection and shall not 
                        be treated as maintaining a single-employer 
                        plan for purposes of subsections (m) and (n).
                            ``(ii) Funding effective date.--For 
                        purposes of this subparagraph, the term 
                        `funding effective date' means, with respect to 
                        each employer, the earlier of--
                                    ``(I) the date on which the last 
                                collective bargaining agreement 
                                ratified before January 1, 2004, 
                                terminates (determined without regard 
                                to any extension thereof after January 
                                1, 2004), or
                                    ``(II) January 1, 2009.
                            ``(iii) Special rule.--An employer shall 
                        not be treated as having an accumulated funding 
                        deficiency prior to the funding effective date 
                        solely by reason of failing to make the minimum 
                        contributions determined under this subsection, 
                        provided such employer makes its negotiated 
                        contributions.''.
    (e) Certain Rules Applicable to Collectively Bargained Plans Not To 
Apply to Teamster Plans.--Subsection (b) of section 413 of such Code is 
amended by adding at the end the following new paragraph:
            ``(10) Teamster plans.--Notwithstanding subsection (a), in 
        the case of a teamster plan within the meaning of section 
        4001(a)(22) of the Employee Retirement Income Security Act of 
        1974, paragraphs (5), (6), and (7) shall not apply, and--
                    ``(A) the minimum funding standard provided by 
                section 412 shall be determined in accordance with 
                subsection (o) of such section,
                    ``(B) liability for taxes under section 4971 shall 
                be determined under section 4971(h), and
                    ``(C) each employer that has an obligation to 
                contribute to a teamster plan shall be treated as 
                maintaining a single-employer plan in accordance with 
                section 412(o) for purposes of determining the 
                applicable limitation provided by section 404(a).''.
    (f) Modification of Controlled Group Rules.--Subsections (b) and 
(c) of section 414 of such Code are each amended by inserting `412(o),' 
after `411,'.
    (g) Modification of Rules on Merger and Consolidation of Plans, 
Etc.--Section 414(l) of such Code is amended by adding at the end the 
following new paragraph:
            ``(3) Assets of teamster plans.--The assets allocated to an 
        employer that has an obligation to contribute to a teamster 
        plan (as defined in section 4001(a)(22) of the Employee 
        Retirement Income Security Act of 1974) shall not be used to 
        pay benefits for service of participants with other employers 
        that have an obligation to contribute to such plan.''.
    (h) Teamster Plan Not Treated as Multiemployer Plan Under Special 
Rules for Multiemployer Plans.--
            (1) In general.--Subpart C of part I of subchapter D of 
        chapter 1 of such Code is amended by adding at the end the 
        following new section:

``SEC. 418F. TEAMSTER PLANS.

    ``For purposes of this subpart, a teamster plan (as defined in 
section 4001(a)(22) of the Employee Retirement Income Security Act of 
1974) shall not be treated as a multiemployer plan.''.
            (2) The table of sections for such subpart C is amended by 
        adding at the end the following new item:

                              ``Sec. 418F. Teamster plans.''.
    (i) Teamster Plan Not Treated as Multiemployer Plan Under Tax on 
Failure To Meet Minimum Funding Standards.--Section 4971 of such Code 
is amended by redesignating subsection (g) as subsection (h) and by 
inserting after subsection (f) the following new subsection:
    ``(g) Teamster Plans.--For purposes of this section, effective as 
of the funding effective date as defined in section 412(o)(10), a 
teamster plan (as defined in section 4001(a)(22) of the Employee 
Retirement Income Security Act of 1974) shall not be treated as a 
multiemployer plan, and each employer that has an obligation to 
contribute to a teamster plan shall be treated as maintaining a single-
employer plan in accordance with section 412(o).''.
    (j) Effective Date.--Except as otherwise provided herein the 
amendments made by this section shall apply to plan years beginning 
after December 31, 2003.

SEC. 5. AMENDMENTS TO THE LABOR MANAGEMENT RELATIONS ACT, 1947.

    (a) Requirements Relating to Labor Organizations.--Section 8(a)(2) 
of the National Labor Relations Act (29 U.S.C. 158(a)(2)) is amended by 
striking ``pay;'' and inserting ``pay: Provided further, That an 
employer shall not be prohibited, in the case of a trust fund that is 
part of a plan to which section 308 of the Employee Retirement Income 
Security Act of 1974 or section 412(o) of the Internal Revenue Code of 
1986 applies, from making contributions to the plan, otherwise required 
under part 3 of subtitle B of title I of such Act or under section 412 
of such Code, at the minimum levels required under the applicable 
provisions of such sections 308 and 412(o), or from making future 
contributions to such plan, otherwise required under such part 3 or 
such section 412, at negotiated levels, with respect to each such 
future contribution for any period, reduced by the amount by which the 
minimum contribution contributed for any prior contribution period 
exceeded the negotiated contribution for such period.''.
    (b) Requirement To Bargain Collectively.--Section 8(a)(5) of such 
Act (29 U.S.C. 158(a)(5)) is amended by striking ``section 9(a).'' and 
inserting ``section 9(a): Provided, That an employer shall not be 
prohibited, in the case of a trust fund that is part of a plan to which 
section 308 of the Employee Retirement Income Security Act of 1974 or 
section 412(o) of the Internal Revenue Code of 1986 applies, from 
making contributions to the plan, otherwise required under part 3 of 
subtitle B of title I of such Act or under section 412 of such Code, at 
the minimum levels required under the applicable provisions of such 
sections 308 and 412(o), or from making future contributions to such 
plan, otherwise required under such part 3 or such section 412, at 
negotiated levels, with respect to each such future contribution for 
any period, reduced by the amount by which the minimum contribution 
contributed for any prior contribution period exceeded the negotiated 
contribution for such period.''.
    (c) Protections for Amounts Held in Trust.--Section 302(c)(5) of 
the Labor Management Relations Act, 1947 (29 U.S.C. 186(c)(5)) is 
amended by striking ``annuities;'' and inserting ``annuities: 
``Provided further, That an employer shall not be prohibited, in the 
case of a trust fund that is part of a plan to which section 308 of the 
Employee Retirement Income Security Act of 1974 or section 412(o) of 
the Internal Revenue Code of 1986 applies, from making contributions to 
the plan, otherwise required under part 3 of subtitle B of title I of 
such Act or under section 412 of such Code, at the minimum levels 
required under the applicable provisions of such sections 308 and 
412(o), or from making future contributions to such plan, otherwise 
required under such part 3 or such section 412, at negotiated levels, 
with respect to each such future contribution for any period, reduced 
by the amount by which the minimum contribution contributed for any 
prior contribution period exceeded the negotiated contribution for such 
period;''.
    (d) Effective Date.--The amendments made by this section shall take 
effect January 1, 2004.
                                 <all>
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