I 

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.

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 ‘‘Multiemployer Pension 

5 Security Act of 2003’’. 
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1 SEC. 2. AMENDMENTS TO THE EMPLOYEE RETIREMENT IN2 COME SECURITY ACT OF 1974 RELATING TO 

3 TERMINATION INSURANCE PROGRAM. 

4 (a) TEAMSTER PLAN DEFINED.—Section 4001(a) of 

5 the Employee Retirement Income Security Act of 1974 

6 (29 U.S.C. 1301(a)) is amended—

7 (1) in paragraph (21), by striking the period at 

8 the end and inserting ‘‘; and’’; and 

9 (2) by adding at the end the following new 

10 paragraph: 

11 ‘‘(22) ‘teamster plan’ means a plan—

12 ‘‘(A) to which more than one employer is 

13 required to contribute, 

14 ‘‘(B) which is maintained pursuant to one 

15 or more collective bargaining agreements be16 tween The International Brotherhood Team17 sters, Chauffeurs, Warehousemen and Helpers 

18 of America or its locals and more than one em19 ployer, and 

20 ‘‘(C) which satisfies such other require21 ments as the Secretary of Labor may prescribe 

22 by regulation.’’. 

23 (b) MODIFICATION OF LIABILITY PROVISIONS.—

24 (1) AMOUNTS PAYABLE BY THE CORPORA25 TION.—Section 4061 is amended by striking ‘‘sub26 title B’’ and inserting ‘‘subtitles B and G’’ in the 
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1 first sentence thereof and inserting ‘‘or subtitle G’’ 

2 after ‘‘4022A’’ in the third sentence thereof. 

3 (2) LIABILITY UNDER DISTRESS TERMINATION

4 OR A TERMINATION BY THE CORPORATION.—Section 

5 4062 is amended by inserting ‘‘or subtitle G’’ after 

6 ‘‘4041(c)’’ in subsection (a) thereof. 

7 (c) MODIFICATION OF ENFORCEMENT PROVI8 SIONS.—Section 4070 is amended—

9 (1) by inserting ‘‘AND TEAMSTER PLANS’’ 

10 after ‘‘SINGLE-EMPLOYER PLANS’’ in the title 

11 thereof; 

12 (2) by inserting at the end of subsection (a) the 

13 following flush sentence: 

14 ‘‘A plan fiduciary, contributing sponsor, member of a con15 tributing sponsor’s controlled group, participant, or bene16 ficiary who is adversely affected by the act or omission 

17 of any party (other than the corporation) under subtitle 

18 G with respect to a teamster plan, or an employee organi19 zation which represents such a plan participant or bene20 ficiary for purposes of collective bargaining, may bring an 

21 action for appropriate legal or equitable relief, or both.’’; 

22 (3) by inserting in each of subsections (a) and 

23 (b) ‘‘or a teamster plan’’ after ‘‘single-employer 

24 plan’’ each time it appears in each such subsection; 

25 and 
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1 (4) by inserting ‘‘, and in the case of a teamster 

2 plan, where the defendant does business’’ at the end 

3 of the second sentence of subsection (c). 

4 (d) SPECIAL PROVISIONS FOR TEAMSTER PLANS.—

5 (1) IN GENERAL.—Title IV of such Act is 

6 amended by adding at the end the following new 

7 subtitle: 

8 ‘‘Subtitle G—Special Provisions for 

9 Teamster Plans 

10 ‘‘SEC. 4501. TREATMENT OF TEAMSTER PLANS. 

11 ‘‘(a) GENERAL RULE.—For purposes of this title, a 

12 teamster plan shall not be treated as a multiemployer 

13 plan, and each employer that has an obligation to con14 tribute to a teamster plan shall be treated as a contrib15 uting sponsor maintaining a separate single-employer 

16 plan, as provided in this subtitle. 

17 ‘‘(b) PARTITION OF LIABILITIES.—

18 ‘‘(1) IN GENERAL.—As of the first day of the 

19 first plan year for which this subtitle is effective, the 

20 transition liabilities of each teamster plan shall be 

21 allocated among those persons that are, as of such 

22 date, the contributing employers of the plan, in ac23 cordance with this subsection. 
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1 ‘‘(2) TRANSITION LIABILITIES.—For purposes 

2 of this subtitle, ‘transition liabilities’ means the sum 

3 of—

4 ‘‘(A) the accrued liability for the benefits 

5 under the plan (as a whole, as if such plan were 

6 treated as a single multiemployer plan rather 

7 than a collection of single-employer plans but 

8 taking into account the requirements of section 

9 308) attributable as of the first day of the first 

10 plan year for which this subtitle is effective to 

11 participants who, as of such date, are not em12 ployed in credited service for any employer 

13 under such plan, and 

14 ‘‘(B) the accrued liability for the benefits 

15 under the plan (as a whole, as if such plan were 

16 treated as a single multiemployer plan rather 

17 than a collection of single-employer plans but 

18 taking into account the requirements of section 

19 308) attributable, as of the first day of the first 

20 plan year for which this subtitle is effective, to 

21 the credited service of participants (other than 

22 participants described in (A)) with an employer 

23 that, as of such date, does not have an obliga24 tion to contribute to the teamster plan. 

25 ‘‘(3) METHOD OF ALLOCATION.—
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1 ‘‘(A) Transition liabilities shall be allocated 

2 under paragraph (1) with respect to each team3 ster plan among those employers who have an 

4 obligation to make contributions to such plan as 

5 of the first day of the first plan year for which 

6 this subtitle is effective. 

7 ‘‘(B) Each employer’s share of the transi8 tion liabilities shall equal the product derived by 

9 multiplying—

10 ‘‘(i) the transition liabilities of the 

11 plan (as a whole, as if such plan were 

12 treated as a single multiemployer plan 

13 rather than a collection of single-employer 

14 plans, but taking into account the require15 ments of section 308), by 

16 ‘‘(ii) a percentage determined as of 

17 the first day of the first plan year for 

18 which this subtitle is effective by divid19 ing—

20 ‘‘(I) the sum of the contributions 

21 required to be made under such plan 

22 by the employer for the 5 preceding 

23 plan years, by 

24 ‘‘(II) the sum of the contribu25 tions required to be made by all such 
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1 employers for the 5 preceding plan 

2 years. 

3 ‘‘(4) ANTICIPATION OF BENEFIT INCREASES.—

4 For purposes of this subsection, in determining ac5 crued liability, the funding method of a plan shall 

6 anticipate benefit increases scheduled to take effect 

7 during the term of the collective bargaining agree8 ment or agreements applicable to the plan. 

9 ‘‘(c) PARTITION OF ASSETS.—

10 ‘‘(1) IN GENERAL.—As of the first day of the 

11 first plan year for which this subtitle is effective, the 

12 assets of each teamster plan shall be allocated 

13 among those persons who are, as of such date, the 

14 contributing employers of the plan, in accordance 

15 with this subsection. 

16 ‘‘(2) METHOD OF ALLOCATION.—The assets of 

17 the teamster plan shall be allocated, based on fair 

18 market value as of the first day of the first plan 

19 year for which this subtitle is effective, among those 

20 employers who have, as of such date, an obligation 

21 to contribute to the plan. The portion allocated to 

22 each such employer shall be equal to the product de23 rived by multiplying—

24 ‘‘(A) the funded percentage for the team25 ster plan, by 
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1 ‘‘(B) the employer’s share of the accrued 

2 liability for the plan (as a whole, as if such plan 

3 were treated as a single multiemployer plan 

4 rather than a collection of single-employer plans 

5 but taking into account the requirements of sec6 tion 308), as of such date. 

7 ‘‘(3) FUNDED PERCENTAGE.—For purposes of 

8 this subsection, ‘funded percentage’, in connection 

9 with a plan, means the percentage obtained by divid10 ing—

11 ‘‘(A) the fair market value of plan assets 

12 (as a whole, as if such plan were treated as a 

13 single multiemployer plan rather than a collec14 tion of single-employer plans but taking into ac15 count the requirements of section 308), includ16 ing receivables, as of the first day of the first 

17 plan year for which this subtitle is effective, by 

18 ‘‘(B) the accrued liability for the plan (as 

19 a whole, as if such plan were treated as a single 

20 multiemployer plan rather than a collection of 

21 single-employer plans but taking into account 

22 the requirements of section 308), as of such 

23 date. 

24 ‘‘(4) INVESTMENT OF PLAN ASSETS.—The as25 sets of a teamster plan shall be invested by the 
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1 trustees as one master trust and each contributing 

2 employer’s share of the assets of the plan shall be 

3 adjusted annually according to master trust account4 ing principles for the employer’s plan contributions, 

5 benefit payments with respect to its ongoing liability 

6 and transition liability (if any), and share of invest7 ment returns and administrative expenses. 

8 ‘‘(5) ANTICIPATION OF BENEFIT INCREASES.—

9 For purposes of this subsection, in determining ac10 crued liability, the funding method of a plan shall 

11 anticipate benefit increases scheduled to take effect 

12 during the term of the collective bargaining agree13 ment(s) applicable to the plan. 

14 ‘‘(d) SINGLE-EMPLOYER PLAN BENEFITS GUARAN15 TEED.—Notwithstanding any limitations otherwise appli16 cable under section 4022(b), the corporation shall guar17 antee 100 percent of the transition liabilities of each team18 ster plan. 

19 ‘‘(e) PREMIUM RATES.—

20 ‘‘(1) IN GENERAL.—For purposes of section 

21 4006—

22 ‘‘(A) the premium rates charged by the 

23 corporation for teamster plans shall be the 

24 same as the premium rates charged by the cor25 poration for single-employer plans, and 
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1 ‘‘(B) each employer that has an obligation 

2 to contribute to a teamster plan shall be re3 sponsible for paying the premiums attributable 

4 to the single-employer plan the employer is 

5 treated as maintaining pursuant to this subtitle. 

6 ‘‘(2) PHASE-IN OF ADDITIONAL PREMIUM.—The 

7 amount of the additional premium determined under 

8 section 4006(a)(3)(E) with respect to a teamster 

9 plan shall be phased in over 10 plan years, begin10 ning with the first plan year for which this subtitle 

11 is effective, so that the additional premium shall 

12 take effect during the 10-year period in annual in13 crements taking effect for each year, each of which 

14 is equal to 10 percent of the full increase that would 

15 otherwise apply for such plan year, resulting in ap16 plication of the full additional premium effective 

17 with the final plan year in such period and each plan 

18 year thereafter. 

19 ‘‘(3) CONTRIBUTION OF PREMIUMS TO TEAM20 STER PLAN.—The corporation may allow an em21 ployer to contribute all or part of the additional pre22 mium determined under section 4006(a)(3)(E) di23 rectly to the teamster plan, in lieu of payment to the 

24 corporation, to the extent that the corporation deter25 mines in its discretion that such contribution would
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1 be in the best interests of participants and bene2 ficiaries. 

3 ‘‘(f) PLAN TERMINATION.—

4 ‘‘(1) IN GENERAL.—An employer that has an 

5 obligation to contribute to a teamster plan may ter6 minate its participation in such plan in either a 

7 standard termination or a distress termination, as 

8 provided in this subsection. 

9 ‘‘(2) STANDARD TERMINATION.—An employer 

10 that has an obligation to contribute to a teamster 

11 plan may terminate its participation in such plan in 

12 a standard termination by following procedures es13 tablished by the corporation similar to those that 

14 apply to a plan administrator in a standard termi15 nation of a single-employer plan under section 4041. 

16 For purposes of this paragraph, the employer shall 

17 be deemed to have satisfied its obligations to the 

18 teamster plan if—

19 ‘‘(A) the employer obtains an irrevocable 

20 commitment from an insurer satisfactory to the 

21 corporation to pay its benefit liabilities under 

22 such plan, or 

23 ‘‘(B) the corporation agrees to assume the 

24 employer’s obligation to contribute to the plan 

25 and make contributions under the teamster 
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1 plan pursuant to such terms and conditions as 

2 shall be satisfactory to the corporation and the 

3 teamster plan. 

4 ‘‘(3) DISTRESS TERMINATION.—An employer 

5 that has an obligation to contribute to a teamster 

6 plan may terminate its participation in such plan in 

7 a distress termination by following procedures estab8 lished by the corporation similar to those that apply 

9 to a plan administrator in a distress termination of 

10 a single-employer plan under section 4041, including 

11 meeting the necessary distress criteria under prin12 ciples similar to those described in section 

13 4041(c)(2)(B). 

14 ‘‘(4) APPLICATION OF CERTAIN TERMINATION

15 PROVISIONS.—Upon an employer’s termination of its 

16 participation in a teamster plan in either a standard 

17 termination or a distress termination, sections 4044, 

18 4045, 4046, and 4050 shall apply to the plan ad19 ministrator of such plan in a manner consistent with 

20 the treatment of such employer as a contributing 

21 sponsor of a single-employer plan under this subtitle. 

22 The corporation may institute termination pro23 ceedings against a teamster plan or an employer’s 

24 participation in a teamster plan under section 4042, 

25 and the provisions of such section shall be applied 
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1 to such termination proceedings in a manner con2 sistent with the treatment of the teamster plan as 

3 a collection of single-employer plans. 

4 ‘‘(5) CONTRIBUTION OF ASSETS REMAINING

5 AFTER STANDARD TERMINATION TO LIABILITIES OF

6 OTHER CONTRIBUTING EMPLOYERS.—Any assets 

7 that remain allocated under a teamster plan to an 

8 employer after the termination of the employer’s 

9 participation in the plan in a standard termination 

10 under paragraph (2) shall be applied on a pro rata 

11 basis toward satisfaction of the benefit liabilities of 

12 the remaining employers that contribute to the 

13 teamster plan based on such liabilities. 

14 ‘‘(g) OBLIGATION TO FURNISH INFORMATION.—The 

15 trustees of a teamster plan shall furnish to each employer 

16 that has an obligation to contribute to such plan, within 

17 30 days of an employer’s written request, such reports, 

18 records, documents, or other information as the employer 

19 reasonably determines are necessary to enable the em20 ployer to determine the liabilities and assets of the team21 ster plan attributable to such employer and to comply with 

22 such employer’s funding obligations under section 308. 

23 The trustees shall be personally liable to an employer for 

24 any failure to furnish such information required to be fur25 nished under this subsection and may in the court’s discre-
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1 tion be liable to such employer in the amount of up to 

2 $100 a day from the date of such failure, and the court 

3 may in its discretion order such other relief as it deems 

4 proper. In any action under this subsection, the court in 

5 its discretion may allow a reasonable attorney’s fee and 

6 costs of action to either party.’’. 

7 (2) CLERICAL AMENDMENT.—The table of con8 tents in section 1 of such Act is amended—

9 (A) by amending the item relating to sec10 tion 4070 to read as follows:

‘‘Sec. 4070. Enforcement authority relating to terminations of single-employer 

plans and teamster plans.’’;

11 and 

12 (B) by adding at the end the following new 

13 items:

‘‘Subtitle G—Special Provisions for Teamster Plans 

‘‘Sec. 4501. Treatment of teamster plans.’’.

14 (e) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to plan years beginning after De16 cember 31, 2003.

17 SEC. 3. AMENDMENTS TO THE EMPLOYEE RETIREMENT IN18 COME SECURITY ACT RELATING TO FUNDING 

19 REQUIREMENTS. 

20 (a) NOTICE REQUIREMENT RELATING TO FAILURE

21 TO MEET MINIMUM FUNDING STANDARD.—Section 

22 101(d) of the Employee Retirement Income Security Act 
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1 of 1974 (29 U.S.C. 1021(d)) is amended by adding at the 

2 end the following new paragraph: 

3 ‘‘(4) TEAMSTER PLANS.—For purposes of this 

4 subsection, effective as of the funding effective date 

5 (as defined in section 308(b)(11)), a teamster plan 

6 (as defined in section 4001(a)(22)) shall not be 

7 treated as a multiemployer plan, and each employer 

8 that has an obligation to contribute to a teamster 

9 plan shall be treated as an employer maintaining a 

10 separate single-employer plan, as provided in section 

11 308.’’. 

12 (b) RULE RELATING TO PROHIBITION ON BENEFIT

13 INCREASES WHILE SPONSOR IN BANKRUPTCY.—Section 

14 204(i) of such Act (29 U.S.C. 1054(i)) is amended—

15 (1) by redesignating paragraph (4) as para16 graph (5); and 

17 (2) by inserting after paragraph (3) the fol18 lowing new paragraph: 

19 ‘‘(4) SPECIAL RULE FOR TEAMSTER PLANS.—

20 For purposes of this subsection, a teamster plan (as 

21 defined in section 4001(a)(22)) shall not be treated 

22 as a multiemployer plan. This subsection shall be 

23 applied separately with respect to each employer 

24 that has an obligation to contribute to a teamster 

25 plan, and the funded current liability percentage for
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1 purposes of paragraph (3) shall be determined in ac2 cordance with section 308.’’. 

3 (c) SPECIAL FUNDING RULES FOR TEAMSTER

4 PLANS.—

5 (1) IN GENERAL.—Part 3 of subtitle B of title 

6 I of such Act is amended—

7 (A) by redesignating section 308 (29 

8 U.S.C. 1086) as section 309; and 

9 (B) by inserting after section 307 (29 

10 U.S.C. 1085b) the following new section: 

11 ‘‘SEC. 308. TEAMSTER PLANS. 

12 ‘‘(a) IN GENERAL.—For purposes of this part other 

13 than section 302(d), a teamster plan within the meaning 

14 of section 4001(a)(22) shall not be treated as a multiem15 ployer plan, and each employer that has an obligation to 

16 contribute to a teamster plan shall be treated as a contrib17 uting sponsor maintaining a single-employer plan, subject 

18 to the special rules of subsection (b). 

19 ‘‘(b) SPECIAL RULES.—

20 ‘‘(1) FUNDING STANDARD ACCOUNT.—A fund21 ing standard account shall be established and main22 tained for each employer that has an obligation to 

23 contribute to a teamster plan. In determining the 

24 funding standard account under section 302(b) for 

25 each such employer—
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1 ‘‘(A) subsections (b)(2)(B)(i) and 

2 (b)(2)(B)(ii) of section 302 shall not apply; 

3 ‘‘(B) in the case of a teamster plan in ef4 fect on the first day of the first plan year for 

5 which this section is effective, the funding 

6 standard account shall be charged with—

7 ‘‘(i) the amount necessary to amortize 

8 in equal annual installments (until fully 

9 amortized) the employer’s unfunded past 

10 service liability over a period of 30 plan 

11 years, and 

12 ‘‘(ii) the amount necessary to amor13 tize over a period of 10 plan years in equal 

14 annual installments (until fully amortized) 

15 the credit determined under section 

16 308(b)(1)(C)(ii) for the immediately pre17 ceding plan year; and 

18 ‘‘(C) in the case of a teamster plan in ef19 fect on the first day of the first plan year for 

20 which this section is effective, the funding 

21 standard account shall be credited with— 

22 ‘‘(i) the amount necessary to amortize 

23 in equal annual installments (until fully 

24 amortized) the excess (if any) of the em25 ployer’s initial market value of assets over 
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1 the employer’s teamster plan accrued li2 ability determined as of the first day of the 

3 first plan year for which this section is ef4 fective, over a period of 30 plan years, and 

5 ‘‘(ii) for an employer who has made 

6 its negotiated contribution for a plan year 

7 beginning after December 31, 2003, and 

8 before the funding effective date, the ex9 cess (if any) of—

10 ‘‘(I) the minimum funding re11 quirement determined under this sec12 tion for such plan year, over 

13 ‘‘(II) the actual contribution 

14 made to the plan for any such plan 

15 year. 

16 ‘‘(2) VALUATION OF ASSETS.—For purposes of 

17 section 302(c)(2)(A), the actuarial value of assets of 

18 a teamster plan as of the first day of the first plan 

19 year for which this section is effective shall be the 

20 fair market value of such assets as of such date. The 

21 value of the assets attributable to each employer 

22 shall be adjusted annually according to principles of 

23 master trust accounting for the employer’s plan con24 tributions, investment income (and loss), the employ25 er’s benefit payments with respect to its ongoing li-
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1 ability and transition liability (if any), and the em2 ployer’s share of administrative expenses. Prospec3 tive investment experience may be reflected in ac4 cordance with section 302(c)(2) or any applicable 

5 regulations issued by the Secretary of the Treasury. 

6 ‘‘(3) ELECTION WITH RESPECT TO BONDS.—

7 The special election described in section 

8 302(c)(2)(B) shall not apply. 

9 ‘‘(4) CERTAIN RETROACTIVE PLAN AMEND10 MENTS.—Notwithstanding any other provision of 

11 this section, a teamster plan shall be treated as a 

12 multiemployer plan for purposes of section 

13 302(c)(8)(A). 

14 ‘‘(5) BENEFITS MAY NOT BE INCREASED UN15 LESS TEAMSTER PLAN IS SUFFICIENTLY FUNDED.—

16 In addition to the requirements of section 304(b)(1), 

17 no amendment of a teamster plan which increases 

18 the liabilities of the plan with respect to an employer 

19 by reason of any increase in benefits, any change in 

20 the accrual of benefits, or any change in the rate at 

21 which benefits become nonforfeitable under the plan 

22 shall be adopted and no increase in benefits attrib23 utable to an existing provision of a teamster plan 

24 (other than an increase that results solely from an 

25 increase in a participant’s compensation, age or 
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1 service or other similar factor), including an increase 

2 in benefits attributable to an increase in the nego3 tiated contribution, shall take effect unless at the 

4 time such increase otherwise would be effective—

5 ‘‘(A) the percentage determined by divid6 ing—

7 ‘‘(i) the lesser of the fair market value 

8 of the assets and the actuarial value of the 

9 assets attributable to the employer for the 

10 plan year in which the increase otherwise 

11 would be effective, by 

12 ‘‘(ii) the employer’s teamster plan cur13 rent liability (determined using the highest 

14 rate of interest which is allowable for the 

15 plan year under section 302(d)(7)(C)) for 

16 the plan year in which the increase other17 wise would be effective, 

18 is at least 90 percent, and 

19 ‘‘(B) the percentage determined by divid20 ing—

21 ‘‘(i) the amount described in subpara22 graph (A)(i), by 

23 ‘‘(ii) the sum of—

24 ‘‘(I) the amount described in sub25 paragraph (A)(ii), and
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1 ‘‘(II) the increase in the present 

2 value of future service benefits (taking 

3 into account the amendment or other 

4 circumstance resulting in such in5 crease), determined using the highest 

6 rate of interest which is allowable for 

7 the plan year under section 

8 302(d)(7)C) and the mortality as9 sumptions required under section 

10 302(d)(7)(C), for the plan year in 

11 which the increase otherwise would be 

12 effective. 

13 is at least 75 percent. 

14 ‘‘(6) ADDITIONAL FUNDING REQUIREMENTS

15 FOR TEAMSTER PLANS.—

16 ‘‘(A) For any plan year beginning on or 

17 after January 1, 2004, and before January 1, 

18 2034, the amount charged to the funding 

19 standard account for the plan year shall be in20 creased by the amount which, after taking into 

21 account charges and credits under section 

22 302(b), is necessary to increase the funded cur23 rent liability percentage at the end of the plan 

24 year (taking into account the expected change 

25 in current liability due to benefits and interest 
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1 accruing during the plan year, expected dis2 bursements during the plan year, and the 

3 change in the market value of assets due to in4 terest and expected disbursements during the 

5 plan year) for the plan year to a percentage 

6 equal to the sum of—

7 ‘‘(i) the funded current liability per8 centage at the beginning of the plan year, 

9 and 

10 ‘‘(ii) the lesser of 4 percent or the 

11 percentage determined by dividing—

12 ‘‘(I) the excess of 90 percent over 

13 the funded current liability percentage 

14 as of the beginning of the plan year, 

15 by 

16 ‘‘(II) 30 minus the number of 

17 plan years completed since the last 

18 plan year beginning before January 1, 

19 2004. 

20 ‘‘(B) For any plan year beginning on or 

21 after January 1, 2034, the amount charged to 

22 the funding standard account for the plan year 

23 shall be increased by the amount which, after 

24 taking into account charges and credits under 

25 section 302(b), is necessary to increase the 
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1 funded current liability percentage at the end of 

2 the plan year (taking into account the expected 

3 change in current liability due to benefits and 

4 interest accruing during the plan year, expected 

5 disbursements during the plan year, and the 

6 change in the market value of assets due to in7 terest and expected disbursements during the 

8 plan year) for the plan year to the lesser of—

9 ‘‘(i) 90 percent, and 

10 ‘‘(ii) the sum of the funded current li11 ability percentage at the beginning of the 

12 plan year and 4 percent. 

13 ‘‘(C) The term ‘‘funded current liability 

14 percentage’’ means, with respect to any em15 ployer for any plan year, the percentage 

16 which—

17 ‘‘(i) the lesser of the fair market value 

18 of the assets and the actuarial value of the 

19 assets attributable to the employer for the 

20 plan year, is of 

21 ‘‘(ii) the employer’s teamster plan cur22 rent liability. 

23 ‘‘(7) SPECIAL RULES FOR SMALL TEAMSTER

24 PLANS.—
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1 ‘‘(A) Paragraph (6) shall not apply to any 

2 teamster plan for any plan year if on each day 

3 during the preceding plan year such plan had 

4 no more than 100 participants. 

5 ‘‘(B) In the case of a teamster plan to 

6 which subparagraph (A) does not apply and 

7 which on each day during the preceding plan 

8 year had no more than 150 participants, the 

9 amount of the increase under paragraph (6) for 

10 such plan year shall be equal to the product 

11 of—

12 ‘‘(i) such increase determined without 

13 regard to this subparagraph, multiplied by 

14 ‘‘(ii) 2 percent for the highest number 

15 of participants in excess of 100 on any 

16 such day. 

17 ‘‘(C) For purposes of this paragraph, all 

18 teamster plans maintained by the same em19 ployer (or any member of such employer’s con20 trolled group) shall be treated as 1 plan, but 

21 only employees of such employer or member 

22 shall be taken into account. 

23 ‘‘(8) BENEFITS MAY NOT BE INCREASED BY

24 REASON OF MINIMUM REQUIRED CONTRIBUTION.—A 

25 teamster plan may not provide for any increase in 
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1 a participant’s benefit attributable to an increase in 

2 the minimum contributions determined under this 

3 section for any plan year to the extent such min4 imum contributions exceed the negotiated contribu5 tions for such plan year. 

6 ‘‘(9) DEFINITIONS.—For purposes of this sec7 tion—

8 ‘‘(A) UNFUNDED PAST SERVICE LIABIL9 ITY.—The term ‘unfunded past service liability’ 

10 means, with respect to each employer who, as 

11 of the first day of the first plan year for which 

12 this section is effective, has an obligation to 

13 contribute to a teamster plan, the excess of the 

14 employer’s teamster plan accrued liability deter15 mined as of such date over the employer’s ini16 tial market value of assets. 

17 ‘‘(B) TEAMSTER PLAN ACCRUED LIABIL18 ITY.—The term ‘teamster plan accrued liability’ 

19 means, with respect to each employer who has 

20 an obligation to contribute to a teamster plan, 

21 the sum of the employer’s transition liability (if 

22 any) and the employer’s ongoing liability. 

23 ‘‘(C) TRANSITION LIABILITY.—The term 

24 ‘transition liability’ means, with respect to each 

25 employer who, as of the first day of the first
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1 plan year for which this section is effective, has 

2 an obligation to contribute to a teamster plan, 

3 the product of—

4 ‘‘(i) the sum of 

5 ‘‘(I) the accrued liability for the 

6 benefits under the plan (as a whole, 

7 as if such plan were treated as a sin8 gle multiemployer plan rather than a 

9 collection of single-employer plans but 

10 taking into account the requirements 

11 of this section) attributable as of the 

12 first day of the first plan year for 

13 which this section is effective to par14 ticipants who as of such date are not 

15 employed in credited service for any 

16 employer, and 

17 ‘‘(II) the accrued liability for the 

18 benefits under the plan (as a whole, 

19 as if such plan were treated as a sin20 gle multiemployer plan rather than a 

21 collection of single-employer plans but 

22 taking into account the requirements 

23 of this section) attributable as of the 

24 first day of the first plan year which 

25 this section is effective to the credited 
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1 service of participants (other than 

2 participants described in (I)) with an 

3 employer that does not have an obli4 gation to contribute to the teamster 

5 plan as of such date, and 

6 ‘‘(ii) the percentage determined as of 

7 the first day of the first plan year for 

8 which this section is effective by dividing 

9 the sum of the contributions required to be 

10 made under such plan by the employer for 

11 the 5 preceding plan years by the sum of 

12 the contributions required to be made by 

13 all such employers for the 5 preceding plan 

14 years. 

15 ‘‘(D) ONGOING LIABILITY.—The term ‘on16 going liability’ means, with respect to each em17 ployer, the accrued liability for benefits under a 

18 teamster plan attributable to credited service 

19 with the employer for those participants who 

20 are employed in credited service with any em21 ployer at any time on or after the first day of 

22 the first plan year for which this section is ef23 fective. 

24 ‘‘(E) TEAMSTER PLAN CURRENT LIABIL25 ITY.—The term ‘teamster plan current liability’ 
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1 means, with respect to each employer who has 

2 an obligation to contribute to a teamster plan, 

3 the sum of the employer’s transition current li4 ability (if any) and the employer’s ongoing cur5 rent liability. 

6 ‘‘(F) TRANSITION CURRENT LIABILITY.—

7 The term ‘transition current liability’ means, 

8 with respect to each employer who, as of the 

9 first day of the first plan year for which this 

10 section is effective, has an obligation to con11 tribute to a teamster plan, the product of—

12 ‘‘(i) the sum of—

13 ‘‘(I) the current liability (as de14 fined under section 302(d)(7)) for the 

15 benefits under the plan (as a whole, 

16 as if such plan were treated as a sin17 gle multiemployer plan rather than a 

18 collection of single-employer plans but 

19 taking into account the requirements 

20 of this section) attributable, as of the 

21 first day of the first plan year for 

22 which this section is effective, to par23 ticipants who as of such date are not 

24 employed in credited service for any 

25 employer, and 
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1 ‘‘(II) the current liability (as de2 fined under section 302(d)(7)) for the 

3 benefits under the plan (as a whole, 

4 as if such plan were treated as a sin5 gle multiemployer plan rather than a 

6 collection of single-employer plans but 

7 taking into account the requirements 

8 of this section) attributable, as of the 

9 first day of the first plan year for 

10 which this section is effective section, 

11 to the credited service of participants 

12 (other than participants described in 

13 (I))) with an employer that does not 

14 have an obligation to contribute to the 

15 teamster plan as of such date, and 

16 ‘‘(ii) the percentage determined as of 

17 the first day of the first plan year for 

18 which this section is effective by dividing 

19 the sum of the contributions required to be 

20 made under such plan by the employer for 

21 the 5 preceding plan years by the sum of 

22 the contributions required to be made by 

23 all such employers for the 5 preceding plan 

24 years. 
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1 ‘‘(G) ONGOING CURRENT LIABILITY.—The 

2 term ‘ongoing current liability’ means, with re3 spect to each employer, the current liability (as 

4 defined under section 302(d)(7)) for benefits 

5 under a teamster plan attributable to credited 

6 service with the employer for those participants 

7 who are employed in credited service with any 

8 employer at any time on or after the first day 

9 of the first plan year for which this section is 

10 effective date of this section. 

11 ‘‘(H) EMPLOYER’S INITIAL MARKET VALUE

12 OF ASSETS.—The term ‘employer’s initial mar13 ket value of assets’ means, with respect to each 

14 employer who (as of the first day of the first 

15 plan year for which this section is effective) has 

16 an obligation to contribute to a teamster plan, 

17 the product, determined as of the first day of 

18 the first plan year for which this section is ef19 fective, of the funded percentage for the team20 ster plan as of such date and the employer’s 

21 teamster plan accrued liability as of such date. 

22 ‘‘(I) FUNDED PERCENTAGE.—The term 

23 ‘funded percentage’ means, for each teamster 

24 plan, the amount determined by dividing the 

25 fair market value of the assets of the teamster
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1 plan (as a whole, as if such plan were treated 

2 as a single multiemployer plan rather than a 

3 collection of single-employer plans but taking 

4 into account the rules of this section), including 

5 receivables, as of the first day of the first plan 

6 year for which this section is effective, by the 

7 teamster plan accrued liability for the plan (as 

8 a whole, as if such plan were treated as a single 

9 multiemployer plan rather than a collection of 

10 single-employer plans but taking into account 

11 the rules of this section) as of such date. 

12 ‘‘(J) ANTICIPATION OF FUTURE BENEFIT

13 INCREASES.—For purposes of subparagraphs 

14 (A), (B), (C), (D), and (I) in determining ac15 crued liability, the funding method of a plan 

16 shall anticipate benefit increases scheduled to 

17 take effect during the term of the collective bar18 gaining agreement(s) applicable to the plan. 

19 ‘‘(10) EMPLOYER.—

20 ‘‘(A) For purposes of this section, all em21 ployees of all corporations which are members 

22 of a controlled group of corporations (within the 

23 meaning of section 1563(a) of the Internal Rev24 enue Code of 1986, determined without regard 

25 to section 1563(a)(4) and (e)(3(C) of such 
32

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1 Code) shall be treated as employed by a single 

2 employer. 

3 ‘‘(B) For purposes of this section, under 

4 regulations prescribed by the Secretary of the 

5 Treasury, all employees of trades or businesses 

6 (whether or not incorporated) which are under 

7 common control shall be treated as employed by 

8 a single employer. The regulations prescribed 

9 under this subparagraph shall be based on prin10 ciples similar to the principles which apply in 

11 the case of subparagraph (A). 

12 ‘‘(11) EFFECTIVE DATE.—

13 ‘‘(A) IN GENERAL.—This section shall 

14 apply to plan years beginning after December 

15 31, 2003. 

16 ‘‘(B) PERIODS BEFORE FUNDING EFFEC17 TIVE DATE.—

18 ‘‘(i) IN GENERAL.—Notwithstanding 

19 any contrary provision, prior to the fund20 ing effective date, an employer shall not be 

21 required to make the minimum contribu22 tions determined under this section and 

23 shall not be treated as maintaining a sin24 gle-employer plan for purposes of sub25 sections (e) and (f) of section 302. 
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1 ‘‘(ii) For purposes of this subpara2 graph, the term ‘funding effective date’ 

3 means, with respect to each employer, the 

4 earlier of—

5 ‘‘(I) the date on which the last 

6 collective bargaining agreement rati7 fied before January 1, 2004 termi8 nates (determined without regard to 

9 any extension thereof after January 1, 

10 2004), and 

11 ‘‘(II) January 1, 2009. 

12 ‘‘(iii) SPECIAL RULE.—An employer 

13 shall not be treated as having an accumu14 lated funding deficiency prior to the fund15 ing effective date solely by reason of failing 

16 to make the minimum contributions deter17 mined under this section, provided such 

18 employer makes its negotiated contribu19 tions.’’. 

20 (2) CLERICAL AMENDMENT.—The table of con21 tents in section 1 of such Act is amended by striking 

22 the item relating to sections 308 and inserting the 

23 following new items:

‘‘Sec. 308. Teamster plans. 

‘‘Sec. 309. Effective dates.’’.
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1 (d) EFFECTIVE DATE.—Except as otherwise pro2 vided herein, the amendments made by this section shall 

3 apply to plan years beginning after December 31, 2003.

4 SEC. 4. CONFORMING AMENDMENTS TO INTERNAL REV5 ENUE CODE OF 1986. 

6 (a) TEAMSTER PLANS NOT MULTIEMPLOYER PLAN

7 FOR PURPOSES OF SECURITY REQUIREMENT.—Section 

8 401(a)(29) of the Internal Revenue Code of 1986 is 

9 amended by adding at the end the following new subpara10 graph: 

11 ‘‘(F) TEAMSTER PLANS.—For purposes of 

12 this paragraph, effective as of the funding effec13 tive date as defined in section 412(o)(10), a 

14 teamster plan (as defined in section 

15 4001(a)(22) of the Employee Retirement In16 come Security Act of 1974) shall not be treated 

17 as a multiemployer plan, and each employer 

18 that has an obligation to contribute to a team19 ster plan shall be treated as a contributing 

20 sponsor maintaining a single-employer plan in 

21 accordance with section 412(o).’’. 

22 (b) RULE RELATING TO PROHIBITION ON BENEFIT

23 INCREASES WHILE SPONSOR IN BANKRUPTCY.—Section 

24 401(a)(33) of such Code is amended by redesignating sub-
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1 paragraph (D) as subparagraph (E) and by inserting after 

2 subparagraph (C) the following new subparagraph: 

3 ‘‘(D) SPECIAL RULE FOR TEAMSTER

4 PLANS.—For purposes of this paragraph, a 

5 teamster plan (as defined in section 

6 4001(a)(22) of the Employee Retirement In7 come Security Act of 1974) shall not be treated 

8 as a multiemployer plan. This paragraph shall 

9 be applied separately with respect to each em10 ployer that has an obligation to contribute to a 

11 teamster plan, and the funded current liability 

12 percentage for purposes of subparagraph (B) 

13 shall be determined in accordance with section 

14 412(o).’’. 

15 (c) RULES RELATING TO DEDUCTIBILITY OF CON16 TRIBUTIONS.—

17 (1) IN GENERAL.—Section 404(a)(1) of such 

18 Code is amended by adding at the end thereof the 

19 following subparagraph: 

20 ‘‘(F) SPECIAL RULE FOR TEAMSTER

21 PLANS.—Notwithstanding any other provision 

22 of this subchapter, in the case of any teamster 

23 plan (as defined in section 4001(a)(22) of the 

24 Employee Retirement Income Security Act of 

25 1974), the maximum amount deductible under
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•HR 2910 IH 

1 the limitations of this paragraph for a plan year 

2 by an employer obligated to make contributions 

3 to such plan for such year shall not be less than 

4 the minimum contribution required by such em5 ployer for such year under section 412(o).’’. 

6 (2) LIMITATION ON DEDUCTIONS WHERE COM7 BINATION OF DEFINED CONTRIBUTION PLAN AND

8 DEFINED BENEFIT PLAN.—Section 404(a)(7) is 

9 amended by inserting after subparagraph (D) the 

10 following new subparagraph: 

11 ‘‘(E) TEAMSTER PLANS.—Subparagraph 

12 (A) shall not apply to that portion of the em13 ployer’s contribution to a teamster plan (as de14 fined in section 4001(a)(22) of the Employee 

15 Retirement Income Security Act of 1974) to the 

16 extent such contribution is required as a result 

17 of charges to the funding standard account de18 scribed in section 412(o)(2)(B) or 412(o)(7).’’. 

19 (d) SPECIAL RULES FOR TEAMSTER PLANS.—Sec20 tion 412 of such Code is amended by adding at the end 

21 the following new subsection: 

22 ‘‘(o) TEAMSTER PLANS.—

23 ‘‘(1) IN GENERAL.—For purposes of this sec24 tion other than subsection (l), a teamster plan (as 

25 defined in section 4001(a)(22) of the Employee Re-
37

•HR 2910 IH 

1 tirement Income Security Act of 1974) shall not be 

2 treated as a multiemployer plan, and each employer 

3 that has an obligation to contribute to a teamster 

4 plan shall be treated as a contributing sponsor main5 taining a single-employer plan, subject to the special 

6 rules of this subsection. 

7 ‘‘(2) FUNDING STANDARD ACCOUNT.—A fund8 ing standard account shall be established and main9 tained for each employer that has an obligation to 

10 contribute to a teamster plan. In determining the 

11 funding standard account under subsection (b) for 

12 each such employer—

13 ‘‘(A) subsections (b)(2)(B)(i) and 

14 (b)(2)(B)(ii) shall not apply; 

15 ‘‘(B) in the case of a teamster plan in ef16 fect on the first day of the first plan year for 

17 which this subsection is effective, the funding 

18 standard account shall be charged with—

19 ‘‘(i) the amount necessary to amortize 

20 in equal annual installments (until fully 

21 amortized) the employer’s unfunded past 

22 service liability, over a period of 30 plan 

23 years, and 

24 ‘‘(ii) the amount necessary to amor25 tize over a period of 10 plan years in equal 
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1 annual installments (until fully amortized) 

2 the credit determined under section 

3 412(o)(2)(C)(ii) for the immediately pre4 ceding plan year; and 

5 ‘‘(C) in the case of a teamster plan in ef6 fect on the first day of the first plan year for 

7 which this subsection is effective, the funding 

8 standard account shall be credited with—

9 ‘‘(i) the amount necessary to amortize 

10 in equal annual installments (until fully 

11 amortized) the excess (if any) of the em12 ployer’s initial market value of assets over 

13 the employer’s teamster plan accrued li14 ability determined as of the first day of the 

15 first plan year for which this subsection is 

16 effective, over a period of 30 plan years; 

17 and 

18 ‘‘(ii) for an employer who has made 

19 its negotiated contribution for a plan year 

20 beginning after December 31, 2003 and 

21 before the funding effective date, the ex22 cess (if any) of—

23 ‘‘(I) the minimum funding re24 quirement determined under this sec25 tion for such plan year, over 
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1 ‘‘(II) the actual contribution 

2 made to the plan for any such plan 

3 year. 

4 ‘‘(3) VALUATION OF ASSETS.—For purposes of 

5 subsection (c)(2)(A), the actuarial value of assets of 

6 a teamster plan as of the first day of the first plan 

7 year for which this subsection is effective shall be 

8 the fair market value of such assets as of such date. 

9 The value of the assets attributable to each employer 

10 shall be adjusted annually according to principles of 

11 master trust accounting for the employer’s plan con12 tributions, investment income (and loss), the employ13 er’s benefit payments with respect to its ongoing li14 ability and transition liability (if any), and the em15 ployer’s share of administrative expenses. Prospec16 tive investment experience may be reflected in ac17 cordance with subsection (c)(2) or any applicable 

18 regulations issued by the Secretary. 

19 ‘‘(4) ELECTION WITH RESPECT TO BONDS.—

20 The special election described in subsection 

21 (c)(2)(B) shall not apply. 

22 ‘‘(5) CERTAIN RETROACTIVE PLAN AMEND23 MENTS.—Notwithstanding any other provision of 

24 this subsection, a teamster plan shall be treated as 
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1 a multiemployer plan for purposes of subsection 

2 (c)(8)(A). 

3 ‘‘(6) BENEFITS MAY NOT BE INCREASED UN4 LESS TEAMSTER PLAN IS SUFFICIENTLY FUNDED.—

5 In addition to the requirements of subsection (f)(1), 

6 no amendment of a teamster plan which increases 

7 the liabilities of the plan with respect to an employer 

8 by reason of any increase in benefits, any change in 

9 the accrual of benefits, or any change in the rate at 

10 which benefits become nonforfeitable under the plan 

11 shall be adopted and no increase in benefits attrib12 utable to an existing provision of a teamster plan 

13 (other than an increase that results solely from an 

14 increase in a participant’s compensation, age or 

15 service or other similar factor), including an increase 

16 in benefits attributable to an increase in the nego17 tiated contribution, shall take effect unless at the 

18 time such increase otherwise would be effective—

19 ‘‘(A) the percentage determined by divid20 ing—

21 ‘‘(i) the lesser of the fair market value 

22 of the assets and the actuarial value of the 

23 assets attributable to the employer for the 

24 plan year in which the increase otherwise 

25 would be effective, by
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1 ‘‘(ii) the employer’s teamster plan cur2 rent liability (determined using the highest 

3 rate of interest which is allowable for the 

4 plan year under subsection (l)(7)(C)) for 

5 the plan year in which the increase other6 wise would be effective, 

7 is at least 90 percent, and 

8 ‘‘(B) the percentage determined by divid9 ing—

10 ‘‘(i) the amount described in subpara11 graph (A)(i), by 

12 ‘‘(ii) the sum of—

13 ‘‘(I) the amount described in sub14 paragraph (A)(ii), and 

15 ‘‘(II) the increase in the present 

16 value of future service benefits (taking 

17 into account the amendment or other 

18 circumstance resulting in such in19 crease), determined using the highest 

20 rate of interest which is allowable for 

21 the plan year under subsection 

22 (l)(7)C) and the mortality assump23 tions required under subsection 

24 (l)(7)(C), for the plan year in which 
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•HR 2910 IH 

1 the increase otherwise would be effec2 tive. 

3 is at least 75 percent. 

4 ‘‘(7) ADDITIONAL FUNDING REQUIREMENTS

5 FOR TEAMSTER PLANS.—

6 ‘‘(A) For any plan year beginning on or 

7 after January 1, 2004, and before January 1, 

8 2034, the amount charged to the funding 

9 standard account for the plan year shall be in10 creased by the amount which, after taking into 

11 account charges and credits under subsection 

12 (b), is necessary to increase the funded current 

13 liability percentage at the end of the plan year 

14 (taking into account the expected change in 

15 current liability due to benefits and interest ac16 cruing during the plan year, expected disburse17 ments during the plan year, and the change in 

18 the market value of assets due to interest and 

19 expected disbursements during the plan year) 

20 for the plan year to a percentage equal to the 

21 sum of—

22 ‘‘(i) the funded current liability per23 centage at the beginning of the plan year, 

24 and 
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1 ‘‘(ii) the lesser of 4 percent or the 

2 percentage determined by dividing—

3 ‘‘(I) the excess of 90 percent over 

4 the funded current liability percentage 

5 as of the beginning of the plan year, 

6 by 

7 ‘‘(II) 30 minus the number of 

8 plan years completed since the last 

9 plan year beginning before January 1, 

10 2004. 

11 ‘‘(B) For any plan year beginning on or 

12 after January 1, 2034, the amount charged to 

13 the funding standard account for the plan year 

14 shall be increased by the amount which, after 

15 taking into account charges and credits under 

16 subsection (b), is necessary to increase the 

17 funded current liability percentage at the end of 

18 the plan year (taking into account the expected 

19 change in current liability due to benefits and 

20 interest accruing during the plan year, expected 

21 disbursements during the plan year, and the 

22 change in the market value of assets due to in23 terest and expected disbursements during the 

24 plan year) for the plan year to the lesser of—

25 ‘‘(i) 90 percent, and 
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•HR 2910 IH 

1 ‘‘(ii) the sum of the funded current li2 ability percentage at the beginning of the 

3 plan year and 4 percent. 

4 ‘‘(C) For purposes of this paragraph, the 

5 term ‘funded current liability percentage’ 

6 means, with respect to any plan year, the per7 centage which—

8 ‘‘(i) the lesser of the fair market value 

9 of the assets and the actuarial value of the 

10 assets attributable to the employer for the 

11 plan year, is of 

12 ‘‘(ii) the employer’s teamster plan cur13 rent liability. 

14 ‘‘(8) SPECIAL RULES FOR SMALL TEAMSTER

15 PLANS.—

16 ‘‘(A) Paragraph (7) shall not apply to any 

17 teamster plan for any plan year if on each day 

18 during the preceding plan year such plan had 

19 no more than 100 participants. 

20 ‘‘(B) In the case of a teamster plan to 

21 which subparagraph (A) does not apply and 

22 which on each day during the preceding plan 

23 year had no more than 150 participants, the 

24 amount of the increase under paragraph (7) for 
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1 such plan year shall be equal to the product 

2 of—

3 ‘‘(i) such increase determined without 

4 regard to this subparagraph, multiplied by 

5 ‘‘(ii) 2 percent for the highest number 

6 of participants in excess of 100 on any 

7 such day. 

8 ‘‘(C) For purposes of this paragraph, all 

9 teamster plans maintained by the same em10 ployer (or any member of such employer’s con11 trolled group) shall be treated as 1 plan, but 

12 only employees of such employer or member 

13 shall be taken into account. 

14 ‘‘(9) BENEFITS MAY NOT BE INCREASED BY

15 REASON OF MINIMUM REQUIRED CONTRIBUTION.—A 

16 teamster plan may not provide for any increase in 

17 a participant’s benefit attributable to an increase in 

18 the minimum contributions determined under this 

19 subsection for any plan year to the extent such min20 imum contributions exceed the negotiated contribu21 tions for such plan year. 

22 ‘‘(10) DEFINITIONS.—For purposes of this sub23 section—

24 ‘‘(A) UNFUNDED PAST SERVICE LIABIL25 ITY.—The term ‘unfunded past service liability’
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1 means, with respect to each employer who (as 

2 of the first day of the first plan year for which 

3 this subsection is effective) has an obligation to 

4 contribute to a teamster plan, the excess of the 

5 employer’s teamster plan accrued liability as of 

6 such date over the employer’s initial market 

7 value of assets. 

8 ‘‘(B) TEAMSTER PLAN ACCRUED LIABIL9 ITY.—The term ‘teamster plan accrued liability’ 

10 means, with respect to each employer who has 

11 an obligation to contribute to a teamster plan, 

12 the sum of the employer’s transition liability (if 

13 any) and the employer’s ongoing liability. 

14 ‘‘(C) TRANSITION LIABILITY.—The term 

15 ‘transition liability’ means, with respect to each 

16 employer who, as of the first day of the first 

17 plan year for which this subsection is effective, 

18 has an obligation to contribute to a teamster 

19 plan, the product of—

20 ‘‘(i) the sum of—

21 ‘‘(I) the accrued liability for the 

22 benefits under the plan (as a whole, 

23 as if such plan were treated as a sin24 gle multiemployer plan rather than a 

25 collection of single-employer plans but 
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1 taking into account the requirements 

2 of this subsection) attributable, as of 

3 the first day of the first plan year for 

4 which this subsection is effective, to 

5 participants who as of such effective 

6 date are not employed in credited 

7 service for any employer, and 

8 ‘‘(II) the accrued liability for the 

9 benefits under the plan (as a whole, 

10 as if such plan were treated as a sin11 gle multiemployer plan rather than a 

12 collection of single-employer plans but 

13 taking into account the requirements 

14 of this subsection) attributable as of 

15 the first day of the first plan year for 

16 which, this subsection is effective, to 

17 the credited service of participants 

18 (other than participants described in 

19 subclause (I)) with an employer that 

20 does not have an obligation to con21 tribute to the teamster plan as of 

22 such date, and 

23 ‘‘(ii) the percentage determined as of 

24 the first day of the first plan year for 

25 which this subsection is effective by divid-
48

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1 ing the sum of the contributions required 

2 to be made under such plan by the em3 ployer for the 5 preceding plan years by 

4 the sum of the contributions required to be 

5 made by all such employers for the 5 pre6 ceding plan years. 

7 ‘‘(D) ONGOING LIABILITY.—The term ‘on8 going liability’ means, with respect to each em9 ployer, the accrued liability for benefits under a 

10 teamster plan attributable to credited service 

11 with the employer for those participants who 

12 are employed in credited service with any em13 ployer at any time on or after the first day of 

14 the first plan year for which this section is ef15 fective. 

16 ‘‘(E) TEAMSTER PLAN CURRENT LIABIL17 ITY.—The term ‘teamster plan current liability’ 

18 means, with respect to each employer who has 

19 an obligation to contribute to a teamster plan, 

20 the sum of the employer’s transition current li21 ability (if any) and the employer’s ongoing cur22 rent liability. 

23 ‘‘(F) TRANSITION CURRENT LIABILITY.—

24 The term ‘transition current liability’ means, 

25 with respect to each employer who, as of the 
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1 first day of the first plan year for which this 

2 subsection is effective, has an obligation to con3 tribute to a teamster plan the product of—

4 ‘‘(i) the sum of—

5 ‘‘(I) the current liability (as de6 fined under subsection (l)(7)) for the 

7 benefits under the plan (as a whole, 

8 as if such plan were treated as a sin9 gle multiemployer plan rather than a 

10 collection of single-employer plans but 

11 taking into account the requirements 

12 of this subsection) attributable as of 

13 the first day of the first plan year for 

14 which this subsection is effective to 

15 participants who as of such effective 

16 date are not employed in credited 

17 service for any employer, and 

18 ‘‘(II) the current liability (as de19 fined under subsection (l)(7)) for the 

20 benefits under the plan (as a whole, 

21 as if such plan were treated as a sin22 gle multiemployer plan rather than a 

23 collection of single-employer plans but 

24 taking into account the requirements 

25 of this subsection) attributable as of 
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1 the first day of the first plan year for 

2 which this subsection is effective to 

3 the credited service of participants 

4 (other than participants described in 

5 subclause (I)) with an employer that 

6 does not have an obligation to con7 tribute to the teamster plan as of 

8 such date, and 

9 ‘‘(ii) the percentage determined as of 

10 the first day of the first plan year for 

11 which this subsection is effective by divid12 ing the sum of the contributions required 

13 to be made under such plan by the em14 ployer for the 5 preceding plan years by 

15 the sum of the contributions required to be 

16 made by all such employers for the 5 pre17 ceding plan years. 

18 ‘‘(G) ONGOING CURRENT LIABILITY.—The 

19 term ‘ongoing current liability’ means, with re20 spect to each employer, the current liability (as 

21 defined under subsection (l)(7)) for benefits 

22 under a teamster plan attributable to credited 

23 service with the employer for those participants 

24 who are employed in credited service with any 

25 employer at any time on or after the first day
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1 of the first plan year for which this subsection 

2 is effective. 

3 ‘‘(H) EMPLOYER’S INITIAL MARKET VALUE

4 OF ASSETS.—The term ‘employer’s initial mar5 ket value of assets’ means with respect to each 

6 employer who, as of the first day of the first 

7 plan year for which this subsection is effective, 

8 has an obligation to contribute to a teamster 

9 plan, the product determined as of the first day 

10 of the first plan year for which this subsection 

11 is effective of the funded percentage for the 

12 teamster plan as of such date and the employ13 er’s teamster plan accrued liability as of such 

14 date. 

15 ‘‘(I) FUNDED PERCENTAGE.—The term 

16 ‘funded percentage’ means, for each teamster 

17 plan, the amount determined by dividing—

18 ‘‘(i) the fair market value of the as19 sets of the teamster plan (as a whole, as 

20 if such plan were treated as a single multi21 employer plan rather than a collection of 

22 single-employer plans but taking into ac23 count the requirements of this subsection) 

24 including receivables, as of the first day of 
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•HR 2910 IH 

1 the first plan year for which this sub2 section is effective, by 

3 ‘‘(ii) the teamster plan accrued liabil4 ity for the plan (as a whole, as if such plan 

5 were treated as a single multiemployer 

6 plan rather than a collection of single-em7 ployer plans but taking into account the 

8 requirements of this subsection), as of such 

9 date. 

10 ‘‘(J) ANTICIPATION OF FUTURE BENEFIT

11 INCREASES.—For purposes of subparagraphs 

12 (A), (B), (C), (D), and (I) in determining ac13 crued liability, the funding method of a plan 

14 shall anticipate benefit increases scheduled to 

15 take effect during the term of the collective bar16 gaining agreement(s) applicable to the plan. 

17 ‘‘(11) EFFECTIVE DATE.—

18 ‘‘(A) IN GENERAL.—This subsection shall 

19 apply to plan years beginning after December 

20 31, 2003. 

21 ‘‘(B) PERIODS BEFORE FUNDING EFFEC22 TIVE DATE.—

23 ‘‘(i) IN GENERAL.—Notwithstanding 

24 any contrary provision, prior to the fund25 ing effective date, an employer shall not be 
53

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1 required to make the minimum contribu2 tions determined under this subsection and 

3 shall not be treated as maintaining a sin4 gle-employer plan for purposes of sub5 sections (m) and (n). 

6 ‘‘(ii) FUNDING EFFECTIVE DATE.—

7 For purposes of this subparagraph, the 

8 term ‘funding effective date’ means, with 

9 respect to each employer, the earlier of—

10 ‘‘(I) the date on which the last 

11 collective bargaining agreement rati12 fied before January 1, 2004, termi13 nates (determined without regard to 

14 any extension thereof after January 1, 

15 2004), or 

16 ‘‘(II) January 1, 2009. 

17 ‘‘(iii) SPECIAL RULE.—An employer 

18 shall not be treated as having an accumu19 lated funding deficiency prior to the fund20 ing effective date solely by reason of failing 

21 to make the minimum contributions deter22 mined under this subsection, provided such 

23 employer makes its negotiated contribu24 tions.’’. 
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1 (e) CERTAIN RULES APPLICABLE TO COLLECTIVELY

2 BARGAINED PLANS NOT TO APPLY TO TEAMSTER

3 PLANS.—Subsection (b) of section 413 of such Code is 

4 amended by adding at the end the following new para5 graph: 

6 ‘‘(10) TEAMSTER PLANS.—Notwithstanding 

7 subsection (a), in the case of a teamster plan within 

8 the meaning of section 4001(a)(22) of the Employee 

9 Retirement Income Security Act of 1974, para10 graphs (5), (6), and (7) shall not apply, and—

11 ‘‘(A) the minimum funding standard pro12 vided by section 412 shall be determined in ac13 cordance with subsection (o) of such section, 

14 ‘‘(B) liability for taxes under section 4971 

15 shall be determined under section 4971(h), and 

16 ‘‘(C) each employer that has an obligation 

17 to contribute to a teamster plan shall be treated 

18 as maintaining a single-employer plan in ac19 cordance with section 412(o) for purposes of 

20 determining the applicable limitation provided 

21 by section 404(a).’’. 

22 (f) MODIFICATION OF CONTROLLED GROUP

23 RULES.—Subsections (b) and (c) of section 414 of such 

24 Code are each amended by inserting ‘412(o),’ after ‘411,’. 
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1 (g) MODIFICATION OF RULES ON MERGER AND CON2 SOLIDATION OF PLANS, ETC.—Section 414(l) of such 

3 Code is amended by adding at the end the following new 

4 paragraph: 

5 ‘‘(3) ASSETS OF TEAMSTER PLANS.—The assets 

6 allocated to an employer that has an obligation to 

7 contribute to a teamster plan (as defined in section 

8 4001(a)(22) of the Employee Retirement Income Se9 curity Act of 1974) shall not be used to pay benefits 

10 for service of participants with other employers that 

11 have an obligation to contribute to such plan.’’. 

12 (h) TEAMSTER PLAN NOT TREATED AS MULTIEM13 PLOYER PLAN UNDER SPECIAL RULES FOR MULTIEM14 PLOYER PLANS.—

15 (1) IN GENERAL.—Subpart C of part I of sub16 chapter D of chapter 1 of such Code is amended by 

17 adding at the end the following new section: 

18 ‘‘SEC. 418F. TEAMSTER PLANS. 

19 ‘‘For purposes of this subpart, a teamster plan (as 

20 defined in section 4001(a)(22) of the Employee Retire21 ment Income Security Act of 1974) shall not be treated 

22 as a multiemployer plan.’’. 

23 (2) The table of sections for such subpart C is 

24 amended by adding at the end the following new 

25 item:

‘‘Sec. 418F. Teamster plans.’’.
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1 (i) TEAMSTER PLAN NOT TREATED AS MULTIEM2 PLOYER PLAN UNDER TA X ON FAILURE TO MEET MIN3 IMUM FUNDING STANDARDS.—Section 4971 of such Code 

4 is amended by redesignating subsection (g) as subsection 

5 (h) and by inserting after subsection (f) the following new 

6 subsection: 

7 ‘‘(g) TEAMSTER PLANS.—For purposes of this sec8 tion, effective as of the funding effective date as defined 

9 in section 412(o)(10), a teamster plan (as defined in sec10 tion 4001(a)(22) of the Employee Retirement Income Se11 curity Act of 1974) shall not be treated as a multiemployer 

12 plan, and each employer that has an obligation to con13 tribute to a teamster plan shall be treated as maintaining 

14 a single-employer plan in accordance with section 

15 412(o).’’. 

16 (j) EFFECTIVE DATE.—Except as otherwise provided 

17 herein the amendments made by this section shall apply 

18 to plan years beginning after December 31, 2003.

19 SEC. 5. AMENDMENTS TO THE LABOR MANAGEMENT RELA20 TIONS ACT, 1947.

21 (a) REQUIREMENTS RELATING TO LABOR ORGANIZA22 TIONS.—Section 8(a)(2) of the National Labor Relations 

23 Act (29 U.S.C. 158(a)(2)) is amended by striking ‘‘pay;’’ 

24 and inserting ‘‘pay: Provided further, That an employer 

25 shall not be prohibited, in the case of a trust fund that 
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1 is part of a plan to which section 308 of the Employee 

2 Retirement Income Security Act of 1974 or section 412(o) 

3 of the Internal Revenue Code of 1986 applies, from mak4 ing contributions to the plan, otherwise required under 

5 part 3 of subtitle B of title I of such Act or under section 

6 412 of such Code, at the minimum levels required under 

7 the applicable provisions of such sections 308 and 412(o), 

8 or from making future contributions to such plan, other9 wise required under such part 3 or such section 412, at 

10 negotiated levels, with respect to each such future con11 tribution for any period, reduced by the amount by which 

12 the minimum contribution contributed for any prior con13 tribution period exceeded the negotiated contribution for 

14 such period.’’. 

15 (b) REQUIREMENT TO BARGAIN COLLECTIVELY.—

16 Section 8(a)(5) of such Act (29 U.S.C. 158(a)(5)) is 

17 amended by striking ‘‘section 9(a).’’ and inserting ‘‘section 

18 9(a): Provided, That an employer shall not be prohibited, 

19 in the case of a trust fund that is part of a plan to which 

20 section 308 of the Employee Retirement Income Security 

21 Act of 1974 or section 412(o) of the Internal Revenue 

22 Code of 1986 applies, from making contributions to the 

23 plan, otherwise required under part 3 of subtitle B of title 

24 I of such Act or under section 412 of such Code, at the 

25 minimum levels required under the applicable provisions 
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1 of such sections 308 and 412(o), or from making future 

2 contributions to such plan, otherwise required under such 

3 part 3 or such section 412, at negotiated levels, with re4 spect to each such future contribution for any period, re5 duced by the amount by which the minimum contribution 

6 contributed for any prior contribution period exceeded the 

7 negotiated contribution for such period.’’. 

8 (c) PROTECTIONS FOR AMOUNTS HELD IN TRUST.—

9 Section 302(c)(5) of the Labor Management Relations 

10 Act, 1947 (29 U.S.C. 186(c)(5)) is amended by striking 

11 ‘‘annuities;’’ and inserting ‘‘annuities: ‘‘Provided further, 

12 That an employer shall not be prohibited, in the case of 

13 a trust fund that is part of a plan to which section 308 

14 of the Employee Retirement Income Security Act of 1974 

15 or section 412(o) of the Internal Revenue Code of 1986 

16 applies, from making contributions to the plan, otherwise 

17 required under part 3 of subtitle B of title I of such Act 

18 or under section 412 of such Code, at the minimum levels 

19 required under the applicable provisions of such sections 

20 308 and 412(o), or from making future contributions to 

21 such plan, otherwise required under such part 3 or such 

22 section 412, at negotiated levels, with respect to each such 

23 future contribution for any period, reduced by the amount 

24 by which the minimum contribution contributed for any 
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1 prior contribution period exceeded the negotiated contribu2 tion for such period;’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect January 1, 2004.

Æ