`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3396 Reported in House (RH)]

                                                 Union Calendar No. 391

103d CONGRESS

  2d Session

                               H. R. 3396

                  [Report No. 103-632, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To amend the Employee Retirement Income Security Act of 1974 and the 
   Internal Revenue Code of 1986 to provide security for workers, to 
improve pension plan funding, to limit growth in insurance exposure, to 
protect the single-employer plan termination insurance program, and for 
                            other purposes.

_______________________________________________________________________

                            August 26, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 391
103d CONGRESS
  2d Session
                                H. R. 3396

                  [Report No. 103-632, Parts I and II]

 To amend the Employee Retirement Income Security Act of 1974 and the 
   Internal Revenue Code of 1986 to provide security for workers, to 
improve pension plan funding, to limit growth in insurance exposure, to 
protect the single-employer plan termination insurance program, and for 
                            other purposes.
_______________________________________________________________________
                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 1993

   Mr. Ford of Michigan (for himself and Mr. Rostenkowski) (both by 
 request) introduced the following bill; which was referred jointly to 
        the Committees on Education and Labor and Ways and Means

                             July 19, 1994

     Additional sponsors: Mr. Pickle, Mr. Houghton, and Mr. Zeliff

                             July 29, 1994

    Reported from the Committee on Ways and Means with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            August 26, 1994

 Reported from the Committee on Education and Labor with an amendment, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                          in bold face roman]
[For text of introduced bill, see copy of bill as introduced on October 
                               28, 1993]
_______________________________________________________________________
                                 A BILL


 
 To amend the Employee Retirement Income Security Act of 1974 and the 
   Internal Revenue Code of 1986 to provide security for workers, to 
improve pension plan funding, to limit growth in insurance exposure, to 
protect the single-employer plan termination insurance program, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

     (a) Short Title.--This Act may be cited as the ``Retirement 
Protection Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.

                     TITLE I--PENSION PLAN FUNDING

      Subtitle A--Amendments to the Internal Revenue Code of 1986

Sec. 101. Minimum funding requirements.
Sec. 102. Limitation on changes in current liability assumptions.
Sec. 103. Anticipation of bargained benefit increases.
Sec. 104. Modification of quarterly contribution requirement.
Sec. 105. Exceptions to excise tax on nondeductible contributions.

 Subtitle B--Amendments to the Employee Retirement Income Security Act 
                                of 1974

Sec. 121. Minimum funding requirements.
Sec. 122. Limitation on changes in current liability assumptions.
Sec. 123. Anticipation of bargained benefit increases.
Sec. 124. Modification of quarterly contribution requirement.

  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

Sec. 201. Reportable events.
Sec. 202. Alternative to involuntary termination.
Sec. 203. Certain information required to be furnished to PBGC.
Sec. 204. Liability upon liquidation of contributing sponsor or 
                            controlled group member where plan remains 
                            ongoing.
Sec. 205. Enforcement of minimum funding requirements.
Sec. 206. Remedies for noncompliance with requirements for standard 
                            termination.
Sec. 207. Prohibition on benefit increases where plan sponsor is in 
                            bankruptcy.
Sec. 208. Substantial owner benefits.
Sec. 209. Phase-out of variable rate premium cap.

                    TITLE III--PARTICIPANT SERVICES

Sec. 301. Disclosure to participants.
Sec. 302. Missing participants.
Sec. 303. Modification of maximum guarantee for disability benefits.

                   TITLE IV--MISCELLANEOUS AMENDMENTS

Sec. 401. ERISA citation.
Sec. 402. Definition of contributing sponsor.
Sec. 403. Distress termination criteria for banking institutions.
Sec. 404. Single sum distributions.
Sec. 405. Adjustments to lien for missed minimum funding contributions.
Sec. 406. Rounding rules for cost-of-living adjustments.
Sec. 407. Funding of restored plans.
Sec. 408. Study of funding status of Federal, State, and local 
                            government pension plans.

                        TITLE V--EFFECTIVE DATES

Sec. 501. Effective dates.

                     TITLE I--PENSION PLAN FUNDING

      Subtitle A--Amendments to the Internal Revenue Code of 1986

SEC. 101. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Limitation of additional funding requirement to plans 
        having a funded current liability percentage of less than 90 
        percent.--Paragraph (1) of section 412(l) of the Internal 
        Revenue Code of 1986 (relating to additional funding 
        requirements for plans which are not multiemployer plans) is 
        amended by striking ``which has an unfunded current liability'' 
        and inserting ``which has a funded current liability percentage 
        of less than 90 percent''.
            (2) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 412(l)(1)(A) of such 
                Code is amended to read as follows:
                            ``(ii) the sum of the charges for such plan 
                        year under subsection (b)(2), reduced by the 
                        sum of the credits for such plan year under 
                        subparagraph (B) of subsection (b)(3), plus''.
                    (B) The last sentence in section 412(l)(1) of such 
                Code is amended to read as follows:
        ``Such increase shall not exceed the amount which, after taking 
        into account charges (other than the additional charge under 
        this subsection) and credits under subsection (b), is necessary 
        to increase the funded current liability percentage (taking 
        into account the expected increase in current liability due to 
        benefits accruing during the plan year) to 100 percent.''
            (3) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 412(l) of such Code is amended--
                    (A) by striking ``plus'' at the end of subparagraph 
                (A),
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, plus''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (4) Increase in current liability due to change in required 
        assumptions.--
                    (A) Paragraph (3) of section 412(l) of such Code is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) In general.--The unfunded old 
                        liability amount with respect to any plan for 
                        any plan year shall be increased by the amount 
                        necessary to amortize the amount of additional 
                        unfunded old liability under the plan in equal 
                        annual installments over a period of 12 plan 
                        years (beginning with the first plan year 
                        beginning after December 31, 1994).
                            ``(ii) Additional unfunded old liability.--
                        For purposes of clause (i), the term 
                        `additional unfunded old liability' means the 
                        amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the assumptions 
                                required by paragraph (7)(C) as in 
                                effect for plan years beginning after 
                                December 31, 1994, exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of such first 
                                plan year, valued using the same 
                                assumptions used under subclause (I) 
                                (other than the assumptions required by 
                                paragraph (7)(C)), using the prior 
                                interest rate, and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) Prior interest rate.--For purposes 
                        of clause (ii), the term `prior interest rate' 
                        means the rate of interest that is the same 
                        percentage of the weighted average under 
                        subsection (b)(5)(B)(ii)(I) for the first plan 
                        year beginning after December 31, 1994, as the 
                        rate of interest used by the plan to determine 
                        current liability for the first plan year 
                        beginning after December 31, 1992, is of the 
                        weighted average under subsection 
                        (b)(5)(B)(ii)(I) for such first plan year 
                        beginning after December 31, 1992.''
            (5) Applicable percentage for determining unfunded new 
        liability amount.--Subparagraph (C) of section 412(l)(4) of 
        such Code is amended--
                    (A) by striking ``.25'' and inserting ``.40'', and
                    (B) by striking ``35'' and inserting ``60''.
            (6) Unpredictable contingent event amount.--
                    (A) Subparagraph (A) of section 412(l)(5) of such 
                Code is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding after clause (ii) the 
                        following new clause:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 412(l) of such Code is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
                    (C) Clause (ii) of section 412(m)(4)(D) of such 
                Code is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before subclause (I);
                            (ii) by striking ``or'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``, or''; and
                            (iv) by adding after subclause (II) the 
                        following new clause:
                                    ``(III) 25 percent of the amount 
                                determined under subsection 
                                (l)(5)(A)(iii) for the plan year.''
            (7) Required interest rate and mortality assumptions for 
        determining current liability.--Subparagraph (C) of section 
        412(l)(7) of such Code is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except that the 
                        highest rate in the permissible range under 
                        subparagraph (B)(ii) thereof shall not exceed 
                        100 percent of the weighted average referred to 
                        in such subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the table prescribed by the 
                        Secretary.
                The table prescribed under clause (ii) shall be based 
                on the prevailing commissioners' standard table 
                (described in section 807(d)(5)(A)) used to determine 
                reserves for group annuity contracts issued on the date 
                as of which current liability is determined (without 
                regard to any other subparagraph of section 
                807(d)(5)).''
            (8) Transition rule.--Section 412(l) of such Code is 
        amended by adding at the end the following new paragraph:
            ``(9) Phasein of increases in funding required by 
        retirement protection act of 1994.--
                    ``(A) In general.--For any applicable plan year, at 
                the election of the employer, the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would be required 
                        under paragraph (1) if the provisions of this 
                        title as in effect for plan years beginning 
                        before January 1, 1995, had remained in effect, 
                        or
                            ``(ii) the amount which, after taking into 
                        account charges (other than the additional 
                        charge under this subsection) and credits under 
                        subsection (b), is necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        percentage equal to the sum of the initial 
                        funded current liability percentage of the plan 
                        plus the applicable number of percentage points 
                        for such applicable plan year.
                    ``(B) Applicable number of percentage points.--
                            ``(i) Initial funded current liability 
                        percentage of 75 percent or less.--Except as 
                        provided in clause (ii), for plans with an 
                        initial funded current liability percentage of 
                        75 percent or less, the applicable number of 
                        percentage points for the applicable plan year 
                        is:

                         ``In the case
                                                         The applicable
                             of applicable
                                                              number of
                             plan years
                                                             percentage
                             beginning in:
                                                             points is:
                               1995..................                 3
                               1996..................                 6
                               1997..................                 9
                               1998..................                12
                               1999..................                15
                               2000..................                19
                               2001..................               24.
                            ``(ii) Other cases.--In the case of a plan 
                        to which this clause applies, the applicable 
                        number of percentage points for any such 
                        applicable plan year is the sum of--
                                    ``(I) 2 percentage points;
                                    ``(II) the applicable number of 
                                percentage points (if any) under this 
                                clause for the preceding applicable 
                                plan year;
                                    ``(III) the product of .10 
                                multiplied by the excess (if any) of 
                                (a) 85 percentage points over (b) the 
                                sum of the initial funded current 
                                liability percentage and the number 
                                determined under subclause (II);
                                    ``(IV) for applicable plan years 
                                beginning in 2000, 1 percentage point; 
                                and
                                    ``(V) for applicable plan years 
                                beginning in 2001, 2 percentage points.
                            ``(iii) Plans to which clause (ii) 
                        applies.--
                                    ``(I) In general.--Clause (ii) 
                                shall apply to a plan for an applicable 
                                plan year if the initial funded current 
                                liability percentage of such plan is 
                                more than 75 percent.
                                    ``(II) Plans initially under clause 
                                (i).--In the case of a plan which (but 
                                for this subclause) has an initial 
                                funded current liability percentage of 
                                75 percent or less, clause (ii) (and 
                                not clause (i)) shall apply to such 
                                plan with respect to applicable plan 
                                years beginning after the first 
                                applicable plan year for which the sum 
                                of the initial funded current liability 
                                percentage and the applicable number of 
                                percentage points (determined under 
                                clause (i)) exceeds 75 percent. For 
                                purposes of applying clause (ii) to 
                                such a plan, the initial funded current 
                                liability percentage of such plan shall 
                                be treated as being the sum referred to 
                                in the preceding sentence.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) The term `applicable plan year' means 
                        a plan year beginning after December 31, 1994, 
                        and before January 1, 2002.
                            ``(ii) The term `initial funded current 
                        liability percentage' means the funded current 
                        liability percentage as of the first day of the 
                        first plan year beginning after December 31, 
                        1994.''
            (9) Liquidity requirement.--
                    (A) Section 412(m) of such Code is amended by 
                redesignating paragraph (5) as paragraph (6) and by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Liquidity requirement.--
                    ``(A) In general.--A plan to which this paragraph 
                applies shall be treated as failing to pay the full 
                amount of any required installment to the extent that 
                the value of the liquid assets paid in such installment 
                is less than the liquidity shortfall (whether or not 
                such liquidity shortfall exceeds the amount of such 
                installment required to be paid but for this 
                paragraph).
                    ``(B) Plans to which paragraph applies.--This 
                paragraph shall apply to a defined benefit plan to 
                which subsection (l) applies and which--
                            ``(i) is required to pay installments under 
                        this subsection for a plan year, and
                            ``(ii) has a liquidity shortfall for any 
                        quarter during such plan year.
                    ``(C) Period of underpayment.--For purposes of 
                paragraph (1), any portion of an installment that is 
                treated as not paid under subparagraph (A) shall 
                continue to be treated as unpaid until the close of the 
                quarter in which the due date for such installment 
                occurs.
                    ``(D) Limitation on increase.--If the amount of any 
                required installment is increased by reason of 
                subparagraph (A), in no event shall such increase 
                exceed the amount which, when added to prior 
                installments for the plan year, is necessary to 
                increase the funded current liability percentage 
                (taking into account the expected increase in current 
                liability due to benefits accruing during the plan 
                year) to 100 percent.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Liquidity shortfall.--The term 
                        `liquidity shortfall' means, with respect to 
                        any required installment, an amount equal to 
                        the excess (as of the last day of the quarter 
                        for which such installment is made) of the base 
                        amount with respect to such quarter over the 
                        value (as of such last day) of the plan's 
                        liquid assets.
                            ``(ii) Base amount.--
                                    ``(I) In general.--The term `base 
                                amount' means, with respect to any 
                                quarter, an amount equal to 3 times the 
                                sum of the adjusted disbursements from 
                                the plan for the 12 months ending on 
                                the last day of such quarter.
                                    ``(II) Special rule.--If the amount 
                                determined under clause (i) exceeds an 
                                amount equal to 2 times the sum of the 
                                adjusted disbursements from the plan 
                                for the 36 months ending on the last 
                                day of the quarter and an enrolled 
                                actuary certifies to the Secretary that 
                                such excess is the result of 
                                nonrecurring circumstances, the base 
                                amount with respect to such quarter 
                                shall be determined without regard to 
                                amounts related to those nonrecurring 
                                circumstances.
                            ``(iii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payments of single sums 
                        and other benefits, and administrative 
                        expenses.
                            ``(iv) Adjusted disbursements.--The term 
                        `adjusted disbursements' means disbursements 
                        from the plan reduced by the product of--
                                    ``(I) the plan's funded current 
                                liability percentage (as defined in 
                                subsection (l)(8)) for the plan year, 
                                and
                                    ``(II) the sum of the purchases of 
                                annuities, payments of single sums, and 
                                such other disbursements as the 
                                Secretary shall provide in regulations.
                            ``(v) Liquid assets.--The term `liquid 
                        assets' means cash, marketable securities and 
                        such other assets as specified by the Secretary 
                        in regulations.
                            ``(vi) Quarter.--The term `quarter' means, 
                        with respect to any required installment, the 
                        3-month period preceding the month in which the 
                        due date for such installment occurs.
                    ``(F) Regulations.--The Secretary may prescribe 
                such regulations as are necessary to carry out this 
                paragraph.''
                    (B) Excise tax on unpaid liquidity shortfall.--
                            (i) Subsection (e) of section 4971 of such 
                        Code is amended by striking ``(a) or (b)'' 
                        wherever it appears and replacing it with 
                        ``(a), (b) or (f)''.
                            (ii) Section 4971 of such Code is amended 
                        by redesignating subsection (f) as subsection 
                        (g) and adding a new subsection (f) to read as 
                        follows:
    ``(f) Failure To Pay Liquidity Shortfall.--
            ``(1) In general.--In the case of a plan to which section 
        412(m)(5) applies, there is hereby imposed a tax of 10 percent 
        of the excess (if any) of--
                    ``(A) the amount of the liquidity shortfall for any 
                quarter, over
                    ``(B) the amount of such shortfall which is paid by 
                the required installment under section 412(m) for such 
                quarter (but only if such installment is paid on or 
                before the due date for such installment).
            ``(2) Additional tax.--If the plan has a liquidity 
        shortfall as of the close of any quarter and as of the close of 
        each of the following 4 quarters, there is hereby imposed a tax 
        equal to 100 percent of the amount on which tax was imposed by 
        paragraph (1) for such first quarter.
            ``(3) Definitions and special rule.--
                    ``(A) Liquidity shortfall; quarter.--For purposes 
                of this subsection, the terms `liquidity shortfall' and 
                `quarter' have the respective meanings given such terms 
                by section 412(m)(5).
                    ``(B) Special rule.--If the tax imposed by 
                paragraph (2) is paid with respect to any liquidity 
                shortfall for any quarter, no further tax shall be 
                imposed by this subsection on such shortfall for such 
                quarter.''
                    (C) Treatment of failure to make certain payments 
                if plan has liquidity shortfall.--Section 401(a) of 
                such Code is amended by adding at the end the following 
                new paragraph:
            ``(32) Treatment of failure to make certain payments if 
        plan has liquidity shortfall.--
                    ``(A) In general.--A trust forming part of a 
                pension plan to which section 412(m)(5) applies shall 
                not be treated as failing to constitute a qualified 
                trust under this section merely because such plan 
                ceases to make any payment described in subparagraph 
                (B) during any period that such plan has a liquidity 
                shortfall (as defined in section 412(m)(5)).
                    ``(B) Payments described.--A payment is described 
                in this subparagraph if such payment is--
                            ``(i) any payment, in excess of the monthly 
                        amount paid under a single life annuity (plus 
                        any social security supplements described in 
                        the last sentence of section 411(a)(9)), to a 
                        participant or beneficiary whose annuity 
                        starting date (as defined in section 417(f)(2)) 
                        occurs during the period referred to in 
                        subparagraph (A),
                            ``(ii) any payment for the purchase of an 
                        irrevocable commitment from an insurer to pay 
                        benefits, and
                            ``(iii) any other payment specified by the 
                        Secretary by regulations.
                    ``(C) Period of shortfall.--For purposes of this 
                paragraph, a plan has a liquidity shortfall during the 
                period that there is an underpayment of an installment 
                under section 412(m) by reason of paragraph (5)(A) 
                thereof.''
            (10) Amendment to definition of full funding limitation.--
                    (A) Subparagraph (A) of section 412(c)(7) of such 
                Code is amended--
                            (i) by inserting ``(including the expected 
                        increase in current liability due to benefits 
                        accruing during the plan year)'' after 
                        ``current liability'' in clause (i), and
                            (ii) by adding at the end the following 
                        flush sentences:
                ``In no event shall the excess described in the 
                preceding sentence for any plan year be less than the 
                unfunded current liability (if any) of the plan. For 
                purposes of the preceding sentence, the term `unfunded 
                current liability' has the meaning given such term by 
                subsection (l)(8) (determined without regard to 
                subsection (l)(7)(D)).''
                    (B) Subparagraph (B) of section 412(c)(7) of such 
                Code is amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (l)(7) (without regard to 
                subparagraphs (C) and (D) thereof) and using the rate 
                of interest used under subsection (b)(5)(B).''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1994.

SEC. 102. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) In General.--Paragraph (5) of section 412(c) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``If the funding method'' and inserting the 
        following:
                    ``(A) In general.--If the funding method'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Approval required for certain changes in 
                assumptions by certain single employer plans subject to 
                additional funding requirement.--
                            ``(i) In general.--No actuarial assumption 
                        (other than the assumptions described in 
                        subsection (l)(7)(C)) used to determine the 
                        current liability for a plan to which this 
                        subparagraph applies may be changed without the 
                        approval of the Secretary.
                            ``(ii) Plans to which subparagraph 
                        applies.--This subparagraph shall apply to a 
                        plan only if--
                                    ``(I) subsection (l) applies to the 
                                plan;
                                    ``(II) the employer (within the 
                                meaning of section 412(c)(11) (without 
                                regard to subparagraph (B) thereof)) 
                                maintaining such plan is described in 
                                section 4043(b)(1) of the Employee 
                                Retirement Income Security Act of 1974; 
                                and
                                    ``(III) the change in assumptions 
                                (determined after taking into account 
                                any changes in interest rate and 
                                mortality table) results in a decrease 
                                in the unfunded current liability of 
                                the plan for the current plan year that 
                                is $50,000,000 or greater, or that is 
                                $5,000,000 or greater and that is 5 
                                percent or more of the current 
                                liability of the plan before such 
                                change.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to changes in assumptions for plan years beginning after 
        October 28, 1993.
            (2) Certain changes cease to be effective.--In the case of 
        changes in assumptions for plan years beginning after December 
        31, 1992, and on or before October 28, 1993, such changes shall 
        cease to be effective for plan years beginning after December 
        31, 1994, if--
                    (A) such change would have required the approval of 
                the Secretary of the Treasury had such amendment 
                applied to such change, and
                    (B) such change is not so approved.

SEC. 103. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

    (a) In General.--Section 412(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(12) Anticipation of benefit increases effective in the 
        future.--In determining projected benefits, the funding method 
        of a collectively bargained plan described in section 413(a) 
        (other than a multiemployer plan) shall anticipate benefit 
        increases scheduled to take effect during the term of the 
        collective bargaining agreement applicable to the plan.''
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 1994, with respect to 
collective bargaining agreements in effect on or after January 1, 1995.

SEC. 104. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) In General.--Paragraph (1) of section 412(m) of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``which has a funded current liability 
        percentage (as defined in subsection (l)(8)) for the preceding 
        plan year of less than 100 percent'' before ``fails'', and
            (2) by striking ``any plan year'' and inserting ``the plan 
        year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of enactment of this Act.

SEC. 105. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE CONTRIBUTIONS.

    (a) In General.--Section 4972(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Exceptions.--In determining the amount of 
        nondeductible contributions for any taxable year, there shall 
        not be taken into account--
                    ``(A) contributions that would be deductible under 
                section 404(a)(1)(D) if the plan had more than 100 
                participants if--
                            ``(i) the plan is covered under section 
                        4021 of the Employee Retirement Income Security 
                        Act of 1974, and
                            ``(ii) the plan is terminated under section 
                        4041(b) of such Act on or before the last day 
                        of the taxable year, and
                    ``(B) contributions described in section 
                401(m)(4)(A) or 402(g)(3)(A) which--
                            ``(i) do not exceed 6 percent of 
                        compensation (within the meaning of section 
                        404(a)(7)(A)(i)) paid or accrued (during the 
                        taxable year for which the contributions were 
                        made) to beneficiaries under the plan, and
                            ``(ii) are not deductible when contributed 
                        solely because of section 404(a)(7).
                Subparagraph (B) shall apply to a defined benefit plan 
                only if such plan is described in section 404(a)(1)(D). 
                For purposes of subparagraph (B), the deductible limits 
                under section 404(a)(7) shall first be applied to 
                amounts contributed to a defined benefit plan and then 
                to amounts described in subparagraph (B).''
    (b) Effective Date.--
            (1) Section 4972(c)(6)(a).--Section 4972(c)(6)(A) of the 
        Internal Revenue Code of 1986 (as added by this section) shall 
        apply to taxable years ending on or after the date of enactment 
        of this Act.
            (2) Section 4972(c)(6)(b).--Section 4972(c)(6)(B) of such 
        Code (as added by this section) shall apply to taxable years 
        ending on or after December 31, 1992.

 Subtitle B--Amendments to the Employee Retirement Income Security Act 
                                of 1974

SEC. 121. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Limitation of additional funding requirement to plans 
        having a funded current liability percentage of less than 90 
        percent.--Paragraph (1) of section 302(d) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1082(d)) is 
        amended by striking ``which has an unfunded current liability'' 
        and inserting ``which has a funded current liability percentage 
        of less than 90 percent''.
            (2) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 302(d)(1)(A) of such Act 
                is amended to read as follows:
                            ``(ii) the sum of the charges for such plan 
                        year under subsection (b)(2), reduced by the 
                        sum of the credits for such plan year under 
                        subparagraph (B) of subsection (b)(3), plus''.
                    (B) The last sentence in section 302(d)(1) of such 
                Act is amended to read as follows:
        ``Such increase shall not exceed the amount which, after taking 
        into account charges (other than the additional charge under 
        this subsection) and credits under subsection (b), is necessary 
        to increase the funded current liability percentage (taking 
        into account the expected increase in current liability due to 
        benefits accruing during the plan year) to 100 percent.''
            (3) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 302(d) of such Act is amended--
                    (A) by striking ``plus'' at the end of subparagraph 
                (A);
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, plus''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (4) Increase in current liability due to change in required 
        assumptions.--
                    (A) Paragraph (3) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) In general.--The unfunded old 
                        liability amount with respect to any plan for 
                        any plan year shall be increased by the amount 
                        necessary to amortize the amount of additional 
                        unfunded old liability under the plan in equal 
                        annual installments over a period of 12 plan 
                        years (beginning with the first plan year 
                        beginning after December 31, 1994).
                            ``(ii) Additional unfunded old liability.--
                        For purposes of clause (i), the term 
                        `additional unfunded old liability' means the 
                        amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the assumptions 
                                required by paragraph (7)(C) as in 
                                effect for plan years beginning after 
                                December 31, 1994, exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of such first 
                                plan year, valued using the same 
                                assumptions used under subclause (I) 
                                (other than the assumptions required by 
                                paragraph (7)(C)), using the prior 
                                interest rate, and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) Prior interest rate.--For purposes 
                        of clause (ii), the term `prior interest rate' 
                        means the rate of interest that is the same 
                        percentage of the weighted average under 
                        subsection (b)(5)(B)(ii)(I) for the first plan 
                        year beginning after December 31, 1994, as the 
                        rate of interest used by the plan to determine 
                        current liability for the first plan year 
                        beginning after December 31, 1992, is of the 
                        weighted average under subsection 
                        (b)(5)(B)(ii)(I) for such first plan year 
                        beginning after December 31, 1992.''
            (5) Applicable percentage for determining unfunded new 
        liability amount.--Subparagraph (C) of section 302(d)(4) of 
        such Act is amended--
                    (A) by striking ``.25'' and inserting ``.40'', and
                    (B) by striking ``35'' and inserting ``60''.
            (6) Unpredictable contingent event amount.--
                    (A) Subparagraph (A) of section 302(d)(5) of such 
                Act is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding after clause (ii) the 
                        following new clause:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
                    (C) Clause (ii) of section 302(e)(4)(D) of such Act 
                is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before subclause (I);
                            (ii) by striking ``or'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``, or''; and
                            (iv) by adding after subclause (II) the 
                        following new clause:
                                    ``(III) 25 percent of the amount 
                                determined under subsection 
                                (d)(5)(A)(iii) for the plan year.''
            (7) Required interest rate and mortality assumptions for 
        determining current liability.--Subparagraph (C) of section 
        302(d)(7) of such Act is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except that the 
                        highest rate in the permissible range under 
                        subparagraph (B)(ii) thereof shall not exceed 
                        100 percent of the weighted average referred to 
                        in such subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the table prescribed by the 
                        Secretary of the Treasury.
                The table prescribed under clause (ii) shall be based 
                on the prevailing commissioners' standard table 
                (described in section 807(d)(5)(A) of the Internal 
                Revenue Code of 1986) used to determine reserves for 
                group annuity contracts issued on the date as of which 
                current liability is determined (without regard to any 
                other subparagraph of section 807(d)(5) of such 
                Code).''
            (8) Transition rule.--Section 302(d) of such Act is amended 
        by adding at the end the following new paragraph:
            ``(9) Phasein of increases in funding required by 
        retirement protection act of 1994.--
                    ``(A) In general.--For any applicable plan year, at 
                the election of the employer, the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would be required 
                        under paragraph (1) if the provisions of this 
                        title as in effect for plan years beginning 
                        before January 1, 1995, had remained in effect, 
                        or
                            ``(ii) the amount which, after taking into 
                        account charges (other than the additional 
                        charge under this subsection) and credits under 
                        subsection (b), is necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        percentage equal to the sum of the initial 
                        funded current liability percentage of the plan 
                        plus the applicable number of percentage points 
                        for such applicable plan year.
                    ``(B) Applicable number of percentage points.--
                            ``(i) Initial funded current liability 
                        percentage of 75 percent or less.--Except as 
                        provided in clause (ii), for plans with an 
                        initial funded current liability percentage of 
                        75 percent or less, the applicable number of 
                        percentage points for the applicable plan year 
                        is:

                         ``In the case
                                                         The applicable
                             of applicable
                                                              number of
                             plan years
                                                             percentage
                             beginning in:
                                                             points is:
                               1995..................                 3
                               1996..................                 6
                               1997..................                 9
                               1998..................                12
                               1999..................                15
                               2000..................                19
                               2001..................               24.
                    ``(ii) Other cases.--In the case of a plan to which 
                this clause applies, the applicable number of 
                percentage points for any such applicable plan year is 
                the sum of--
                                    ``(I) 2 percentage points;
                                    ``(II) the applicable number of 
                                percentage points (if any) under this 
                                clause for the preceding applicable 
                                plan year;
                                    ``(III) the product of .10 
                                multiplied by the excess (if any) of 
                                (a) 85 percentage points over (b) the 
                                sum of the initial funded current 
                                liability percentage and the number 
                                determined under subclause (II);
                                    ``(IV) for applicable plan years 
                                beginning in 2000, 1 percentage point; 
                                and
                                    ``(V) for applicable plan years 
                                beginning in 2001, 2 percentage points.
                            ``(iii) Plans to which clause (ii) 
                        applies.--
                                    ``(I) In general.--Clause (ii) 
                                shall apply to a plan for an applicable 
                                plan year if the initial funded current 
                                liability percentage of such plan is 
                                more than 75 percent.
                                    ``(II) Plans initially under clause 
                                (i).--In the case of a plan which (but 
                                for this subclause) has an initial 
                                funded current liability percentage of 
                                75 percent or less, clause (ii) (and 
                                not clause (i)) shall apply to such 
                                plan with respect to applicable plan 
                                years beginning after the first 
                                applicable plan year for which the sum 
                                of the initial funded current liability 
                                percentage and the applicable number of 
                                percentage points (determined under 
                                clause (i)) exceeds 75 percent. For 
                                purposes of applying clause (ii) to 
                                such a plan, the initial funded current 
                                liability percentage of such plan shall 
                                be treated as being the sum referred to 
                                in the preceding sentence.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) The term `applicable plan year' means 
                        a plan year beginning after December 31, 1994, 
                        and before January 1, 2002.
                            ``(ii) The term `initial funded current 
                        liability percentage' means the funded current 
                        liability percentage as of the first day of the 
                        first plan year beginning after December 31, 
                        1994.''
            (9) Liquidity requirement.--
                    (A) Section 302(e) of such Act is amended by 
                redesignating paragraph (5) as paragraph (6) and by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Liquidity requirement.--
                    ``(A) In general.--A plan to which this paragraph 
                applies shall be treated as failing to pay the full 
                amount of any required installment to the extent that 
                the value of the liquid assets paid in such installment 
                is less than the liquidity shortfall (whether or not 
                such liquidity shortfall exceeds the amount of such 
                installment required to be paid but for this 
                paragraph).
                    ``(B) Plans to which paragraph applies.--This 
                paragraph shall apply to a defined benefit plan to 
                which subsection (d) applies and which--
                            ``(i) is required to pay installments under 
                        this subsection for a plan year, and
                            ``(ii) has a liquidity shortfall for any 
                        quarter during such plan year.
                    ``(C) Period of underpayment.--For purposes of 
                paragraph (1), any portion of an installment that is 
                treated as not paid under subparagraph (A) shall 
                continue to be treated as unpaid until the close of the 
                quarter in which the due date for such installment 
                occurs.
                    ``(D) Limitation on increase.--If the amount of any 
                required installment is increased by reason of 
                subparagraph (A), in no event shall such increase 
                exceed the amount which, when added to prior 
                installments for the plan year, is necessary to 
                increase the funded current liability percentage 
                (taking into account the expected increase in current 
                liability due to benefits accruing during the plan 
                year) to 100 percent.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Liquidity shortfall.--The term 
                        `liquidity shortfall' means, with respect to 
                        any required installment, an amount equal to 
                        the excess (as of the last day of the quarter 
                        for which such installment is made) of the base 
                        amount with respect to such quarter over the 
                        value (as of such last day) of the plan's 
                        liquid assets.
                            ``(ii) Base amount.--
                                    ``(I) In general.--The term `base 
                                amount' means, with respect to any 
                                quarter, an amount equal to 3 times the 
                                sum of the adjusted disbursements from 
                                the plan for the 12 months ending on 
                                the last day of such quarter.
                                    ``(II) Special rule.--If the amount 
                                determined under clause (i) exceeds an 
                                amount equal to 2 times the sum of the 
                                adjusted disbursements from the plan 
                                for the 36 months ending on the last 
                                day of the quarter and an enrolled 
                                actuary certifies to the Secretary of 
                                the Treasury that such excess is the 
                                result of nonrecurring circumstances, 
                                the base amount with respect to such 
                                quarter shall be determined without 
                                regard to amounts related to those 
                                nonrecurring circumstances.
                            ``(iii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payments of single sums 
                        and other benefits, and administrative 
                        expenses.
                            ``(iv) Adjusted disbursements.--The term 
                        `adjusted disbursements' means disbursements 
                        from the plan reduced by the product of--
                                    ``(I) the plan's funded current 
                                liability percentage (as defined in 
                                subsection (d)(8)) for the plan year, 
                                and
                                    ``(II) the sum of the purchases of 
                                annuities, payments of single sums, and 
                                such other disbursements as the 
                                Secretary of the Treasury shall provide 
                                in regulations.
                            ``(v) Liquid assets.--The term `liquid 
                        assets' means cash, marketable securities and 
                        such other assets as specified by the Secretary 
                        of the Treasury in regulations.
                            ``(vi) Quarter.--The term `quarter' means, 
                        with respect to any required installment, the 
                        3-month period preceding the month in which the 
                        due date for such installment occurs.
                    ``(F) Regulations.--The Secretary of the Treasury 
                may prescribe such regulations as are necessary to 
                carry out this paragraph.''
                    (B) Limitation on distributions other than life 
                annuities paid by the plan.--
                            (i) Section 204 of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 1054) is 
                        amended by redesignating subsection (i) as (j) 
                        and inserting a new subsection (i) to read as 
                        follows:
    ``(i) Limitation on Distributions Other Than Life Annuities Paid By 
The Plan.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Part, the fiduciary of a pension plan that is subject to 
        the additional funding requirements of section 302(d) shall not 
        permit a prohibited payment to be made from a plan during a 
        period in which such plan has a liquidity shortfall (as defined 
        in section 302(e)(5)).
            ``(2) Prohibited payment.--For purposes of paragraph (1), 
        the term `prohibited payment' means--
                    ``(A) any payment, in excess of the monthly amount 
                paid under a single life annuity (plus any social 
                security supplements described in the last sentence of 
                section 204(b)(1)(G)), to a participant or beneficiary 
                whose annuity starting date (as defined in section 
                205(h)(2)), that occurs during the period referred to 
                in paragraph (1),
                    ``(B) any payment for the purchase of an 
                irrevocable commitment from an insurer to pay benefits, 
                and
                    ``(C) any other payment specified by the Secretary 
                of the Treasury by regulations.
            ``(3) Period of shortfall.--For purposes of this 
        subsection, a plan has a liquidity shortfall during the period 
        that there is an underpayment of an installment under section 
        302(e) by reason of paragraph (5)(A) thereof.
            ``(4) Coordination with other provisions.--Compliance with 
        this subsection shall not constitute a violation of any other 
        provision of this Act.''
                            (ii) Section 502 of such Act is amended by 
                        adding at the end thereof a new subsection (m) 
                        to read as follows:
    ``(m) In the case of a distribution to a pension plan participant 
or beneficiary in violation of section 204(i) by a plan fiduciary, the 
Secretary shall assess a penalty against such fiduciary in an amount 
equal to the value of the distribution. Such penalty shall not exceed 
$10,000 for each such distribution.''
            (10) Amendment to definition of full funding limitation.--
                    (A) Subparagraph (A) of section 302(c)(7) of such 
                Act is amended--
                            (i) by inserting ``(including the expected 
                        increase in current liability due to benefits 
                        accruing during the plan year)'' after 
                        ``current liability'' in clause (i), and
                            (ii) by adding at the end the following 
                        flush sentences:
                ``In no event shall the excess described in the 
                preceding sentence for any plan year be less than the 
                unfunded current liability (if any) of the plan. For 
                purposes of the preceding sentence, the term `unfunded 
                current liability' has the meaning given such term by 
                subsection (d)(8) (determined without regard to 
                subsection (d)(7)(D)).''
                    (B) Subparagraph (B) of section 302(c)(7) of such 
                Act is amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (d)(7) (without regard to 
                subparagraphs (C) and (D) thereof) and using the rate 
                of interest used under subsection (b)(5)(B).''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1994.

SEC. 122. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) Paragraph (5) of section 302(c) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1082(c)(5)) is amended--
            (1) by striking ``If the funding method'' and inserting the 
        following:
                    ``(A) In general.--If the funding method'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Approval required for certain changes in 
                assumptions by certain single employer plans subject to 
                additional funding requirement.--
                            ``(i) In general.--No actuarial assumption 
                        (other than the assumptions described in 
                        subsection (d)(7)(C)) used to determine the 
                        current liability for a plan to which this 
                        subparagraph applies may be changed without the 
                        approval of the Secretary of the Treasury.
                            ``(ii) Plans to which subparagraph 
                        applies.--This subparagraph shall apply to a 
                        plan only if--
                                    ``(I) subsection (d) applies to the 
                                plan;
                                    ``(II) the employer (within the 
                                meaning of section 302(c)(11) (without 
                                regard to subparagraph (B) thereof)) 
                                maintaining such plan is described in 
                                section 4043(b)(1); and
                                    ``(III) the change in assumptions 
                                (determined after taking into account 
                                any changes in interest rate and 
                                mortality table) results in a decrease 
                                in the unfunded current liability of 
                                the plan for the current plan year that 
                                is $50,000,000 or greater, or that is 
                                $5,000,000 or greater and that is 5 
                                percent or more of the current 
                                liability of the plan before such 
                                change.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to changes in assumptions for plan years beginning after 
        October 28, 1993.
            (2) Certain changes cease to be effective.--In the case of 
        changes in assumptions for plan years beginning after December 
        31, 1992, and on or before October 28, 1993, such changes shall 
        cease to be effective for plan years beginning after December 
        31, 1994, if--
                    (A) such change would have required the approval of 
                the Secretary of the Treasury had such amendment 
                applied to such change, and
                    (B) such change is not so approved.

SEC. 123. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

    (a) In General.--Section 302(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1082(c)) is amended by adding at the 
end the following new paragraph:
            ``(12) Anticipation of benefit increases effective in the 
        future.--In determining projected benefits, the funding method 
        of a collectively bargained plan described in section 413(a) of 
        the Internal Revenue Code of 1986 (other than a multiemployer 
        plan) shall anticipate benefit increases scheduled to take 
        effect during the term of the collective bargaining agreement 
        applicable to the plan.''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1994 with respect to 
collective bargaining agreements in effect on or after January 1, 1995.

SEC. 124. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) In General.--Paragraph (1) of section 302(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1082(e)) is amended--
            (1) by inserting ``which has a funded current liability 
        percentage (as defined in subsection (d)(8)) for the preceding 
        plan year of less than 100 percent'' before ``fails'', and
            (2) by striking ``any plan year'' and inserting ``the plan 
        year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of enactment of this Act.

  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

SEC. 201. REPORTABLE EVENTS.

    (a) Responsibility for Reportable Events Reporting.--Section 
4043(a) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1343(a)) is amended--
            (1) in the first sentence, by inserting ``or the 
        contributing sponsor'' before ``knows or has reason to know'';
            (2) in the first sentence, by inserting ``, unless a notice 
        otherwise required under this subsection has already been 
        provided with respect to such event'' before the period at the 
        end; and
            (3) by striking the last sentence.
    (b) Notification That Event Is About To Occur.--Section 4043 of 
such Act is amended by redesignating subsections (b), (c), and (d) as 
(c), (d), and (e), respectively, and by inserting after subsection (a) 
the following new subsection:
    ``(b)(1) The requirements of this subsection shall be applicable to 
a contributing sponsor only if the aggregate unfunded vested benefits 
at the close of the preceding plan year (as determined under section 
4006(a)(3)(E)(iii)) of plans maintained by such sponsor and the members 
of such sponsor's controlled group that are covered by this title 
(taking into account only those plans with unfunded vested benefits) 
exceed $50,000,000.
    ``(2) No later than 30 days prior to the effective date of an event 
described in paragraph (9), (10), (11), (12), or (13) of subsection 
(c), a contributing sponsor to which the requirements of this 
subsection apply shall notify the corporation that the event is about 
to occur.
    ``(3) The corporation may waive the requirement of this subsection 
with respect to any or all reportable events with respect to any 
contributing sponsor.''
    (c) New Reportable Events.--Subsection (c) of section 4043 of such 
Act (as redesignated by subsection (b)) is amended--
            (1) by striking the ``or'' at the end of paragraph (8);
            (2) by striking paragraph (9); and
            (3) by inserting after paragraph (8) the following new 
        paragraphs:
            ``(9) when, as a result of an event, a person ceases to be 
        a member of the controlled group;
            ``(10) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group liquidates in a case 
        under title 11, United States Code, or under any similar 
        Federal law or law of a State or political subdivision of a 
        State;
            ``(11) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group declares an 
        extraordinary dividend (as defined in section 1059(c) of the 
        Internal Revenue Code of 1986) or redeems, in any 12-month 
        period, an aggregate of 10 percent or more of the total 
        combined voting power of all classes of stock entitled to vote, 
        or an aggregate of 10 percent of more of the total value of 
        shares of all classes of stock, of a contributing sponsor and 
        all members of its controlled group;
            ``(12) when, in any 12-month period, an aggregate of 3 
        percent or more of the benefit liabilities of a plan covered by 
        this title and maintained by a contributing sponsor or a member 
        of its controlled group are transferred to a person that is not 
        a member of the controlled group or to a plan or plans 
        maintained by a person or persons that are not such a 
        contributing sponsor or a member of its controlled group; or
            ``(13) when any other event occurs that may be indicative 
        of a need to terminate the plan and that is prescribed by the 
        corporation in regulations.''
    (d) Disclosure Exemption.--Section 4043 of such Act is amended by 
adding at the end the following new subsection:
    ``(f) Any information or documentary material submitted to the 
corporation pursuant to subsection (c) or subsection 4050(c)(2) shall 
be exempt from disclosure under section 552 of title 5, United States 
Code, and no such information or documentary material may be made 
public, except as may be relevant to any administrative or judicial 
action or proceeding. Nothing in this section is intended to prevent 
disclosure to either body of Congress or to any duly authorized 
committee or subcommittee of the Congress.''
    (e) Technical and Conforming Amendments.--
            (1) Subsection (a) of section 4043 of such Act, and 
        subsections (d) and (e) of such section 4043 (as redesignated 
        by subsection (b)) are amended by striking ``subsection (b)'' 
        each place it appears and inserting ``subsection (c)''.
            (2) Section 4042(a)(3) of such Act is amended by striking 
        ``4043(b)(7)'' and inserting ``4043(c)(7)''.
    (f) Effective Date.--The amendments made by this section shall be 
effective for events occurring 60 days or more after the date of 
enactment of this Act.

SEC. 202. ALTERNATIVE TO INVOLUNTARY TERMINATION.

    (a) In General.--Subtitle C of title IV of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by 
adding at the end the following new section:

``SEC. 4050. JUDICIAL RELIEF OTHER THAN INVOLUNTARY TERMINATION.

    ``(a) Institution of Proceedings.--
            ``(1) In general.--Whenever the corporation determines 
        (without regard to the potential availability of relief under 
        this section) that, upon the occurrence of an event described 
        in paragraph (9), (10), (11), (12), or (13) of section 4043(c), 
        the possible long-run loss of the corporation with respect to a 
        plan may reasonably be expected to increase unreasonably if the 
        plan is not terminated, the corporation may, in its discretion, 
        institute proceedings under this section as an alternative to 
        instituting proceedings under section 4042 to terminate the 
        plan.
            ``(2) Limitation.--In the case of an event described in 
        paragraph (9) or (13) of section 4043(c), this section shall 
        apply only if, immediately after the effective date of the 
        event, the total revenues, the total operating income, or the 
        total assets of a contributing sponsor and all members of its 
        controlled group would be less than 90 percent of the total 
        revenues, the total operating income, or the total assets, 
        respectively, of a contributing sponsor and all members of its 
        controlled group immediately before the effective date of the 
        event. For purposes of this paragraph, all events occurring in 
        any 12-month period shall be treated as a single event.
    ``(b) Whenever the corporation makes a determination under 
subsection (a), it may, upon notice to a contributing sponsor, apply to 
the appropriate United States district court for such legal or 
equitable relief as the corporation deems appropriate and consistent 
with its duties under this title. The court shall consider the 
interests of both the participants and the corporation, and shall grant 
such relief, if any, as it determines is necessary to protect those 
interests without interfering unreasonably with the business of the 
contributing sponsor or members of its controlled group.
    ``(c)(1) In any case in which the corporation is provided with a 
notice required by subsection 4043(b) within the time specified in that 
subsection, the corporation may bring an action under this section no 
later than 30 days after the date such notice is received. 
Notwithstanding the preceding sentence, the corporation may, no later 
than 30 days after the date such notice is received, require the 
submission of additional information or documentary material, in which 
case an action under this section may be brought no later than 20 days 
after the corporation receives all the information and documentary 
material it had required.
    ``(2) A person who has provided a notice as described in paragraph 
(1) may elect, upon further notice to the corporation, to proceed with 
an event prior to the expiration of the time periods described in 
paragraph (1). In the case of such an election, an action under this 
section may be brought at any time within the period specified in 
subsection 4003(e)(6).
    ``(3) In any case in which the corporation is not provided with a 
notice required by subsection (b) of section 4043 by the time specified 
in that subsection, in any case in which a person fails or refuses to 
provide the additional information or documentary material required by 
the corporation under paragraph (1), or in any case in which a person 
proceeds with an event without providing the corporation with the 
further notice required under paragraph (2) with respect to such event, 
an action under this section may be brought at any time within the time 
period specified in subsection 4003(e)(6).
    ``(4) Except as provided in paragraph (1), (2), or (3), an action 
under this section may not be brought after the effective date of the 
event giving rise to the transaction.
    ``(5) For purposes of applying subsection 4003(e)(6) to paragraphs 
(2) and (3), a cause of action shall be deemed to arise on the 
effective date of the event.
    ``(d) Nothing in this section shall limit the authority of the 
corporation to initiate proceedings to terminate a plan under section 
4042, or to initiate proceedings or to seek relief under any other 
provision of this title or any other law.''
    (b) Conforming Amendment.--Section 4042(a) of such Act (29 U.S.C. 
1342(a)) is amended by inserting, after ``determines'' the first place 
it appears, the following: ``(without regard to the potential 
availability of relief under section 4050)''.
    (c) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4049 the following new item:

``Sec. 4050. Judicial relief other than involuntary termination.''
    (d) Effective Date.--The amendments made by this section shall be 
effective for events occurring 60 days or more after the date of the 
enactment of this Act.

SEC. 203. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO PBGC.

    (a) General Rule.--Subtitle A of title IV of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) is 
amended by adding at the end the following new section:

``SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMATION.

    ``(a) Information Required.--Each person described in subsection 
(b) shall provide the corporation annually, on or before a date 
specified by the corporation in regulations, with--
            ``(1) such records, documents, or other information that 
        the corporation specifies in regulations as necessary to 
        determine the liabilities and assets of plans covered by this 
        title; and
            ``(2) copies of such person's audited (or, if unavailable, 
        unaudited) financial statements, and such other financial 
        information as the corporation may prescribe in regulations.
    ``(b) Persons Required To Provide Information.--The persons covered 
by subsection (a) are each contributing sponsor, and each member of a 
contributing sponsor's controlled group, of a single-employer plan 
covered by this title, if--
            ``(1) the aggregate unfunded vested benefits at the end of 
        the preceding plan year (as determined under section 
        4006(a)(3)(E)(iii)) of plans maintained by the contributing 
        sponsor and the members of its controlled group exceed 
        $50,000,000 (taking into account only those plans of the 
        contributing sponsor and its controlled group with unfunded 
        vested benefits);
            ``(2) the conditions for imposition of a lien described in 
        section 302(f)(1)(A) and (B) of this Act or section 
        412(n)(1)(A) and (B) of the Internal Revenue Code of 1986 have 
        been met with respect to any plan maintained by the 
        contributing sponsor or any member of its controlled group; or
            ``(3) minimum funding waivers in excess of $1,000,000 have 
        been granted with respect to any plan maintained by the 
        contributing sponsor or any member of its controlled group, and 
        any portion thereof is still outstanding.
    ``(c) Information Exempt From Disclosure Requirements.--Any 
information or documentary material submitted to the corporation 
pursuant to this section shall be exempt from disclosure under section 
552 of title 5, United States Code, and no such information or 
documentary material may be made public, except as may be relevant to 
any administrative or judicial action or proceeding. Nothing in this 
section is intended to prevent disclosure to either body of Congress or 
to any duly authorized committee or subcommittee of the Congress.''
    (b) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4009 the following new item:

``Sec. 4010. Authority to require certain information.''
    (c) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act.

SEC. 204. LIABILITY UPON LIQUIDATION OF CONTRIBUTING SPONSOR OR 
              CONTROLLED GROUP MEMBER WHERE PLAN REMAINS ONGOING.

    (a) In General.--Section 4062 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1362) is amended by adding at the end 
the following new subsection:
    ``(f) Liability on Liquidation of Contributing Sponsor or 
Controlled Group Member.--
            ``(1) In general.--In any case in which all or 
        substantially all of the assets of a person who is a 
        contributing sponsor of a single-employer plan, or a member of 
        a controlled group of a contributing sponsor of a single-
        employer plan, are liquidated in a case under title 11, United 
        States Code, or under any similar Federal law or law of a State 
        or political subdivision of a State, but the plan is not 
        terminated, such person shall be deemed liable under subsection 
        (b) as if the plan had terminated under section 4041(c) in the 
        course of such liquidation and as if the termination date were 
        the date determined by the corporation as the date on which the 
        liquidation was initiated.
            ``(2) Limited joint and several liability.--The liability 
        under this subsection shall be joint and several only among the 
        members of the controlled group (including, where applicable, 
        the contributing sponsor) who are liquidating as described in 
        paragraph (1).
            ``(3) Applicability of other provisions.--Except as 
        provided in paragraph (2), any provision of this Act or any 
        other provision of law that applies to liability under the 
        preceding subsections of this section upon termination of a 
        plan shall apply in the same manner and to the same extent to 
        the liability established under this subsection. For purposes 
        of this paragraph, the date referred to in paragraph (1) shall 
        be deemed the termination date.
            ``(4) Liability owed to plan; transfer of liability 
        payments to the ongoing plan where collected by the 
        corporation.--The liability established under this subsection 
        shall be owed to the plan, and may be collected by either the 
        plan or the corporation. The corporation shall pay to the plan 
        any amounts collected by the corporation in satisfaction of the 
        liability established under this subsection in connection with 
        such plan.
            ``(5) Regulations.--The corporation may prescribe 
        regulations under this subsection, including--
                    ``(A) rules governing--
                            ``(i) the determination of whether and when 
                        a liquidation referred to in this subsection 
                        has occurred, and
                            ``(ii) the assignment of the plan's or 
                        corporation's claim to liability payments under 
                        this subsection to other members of the 
                        controlled group as a means of collecting such 
                        payments, subject to the transfer of such 
                        payments to the plan, and
                    ``(B) rules providing alternative arrangements for 
                making liability payments under this subsection.''
    (b) Conforming Amendment.--Section 4062(a) of such Act is amended--
            (1) in paragraph (1), by striking ``and'' after 
        ``subsection (b),'';
            (2) in paragraph (2), by striking the period after 
        ``subsection (c)'' and inserting '', and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) liability to the plan, to the extent provided in 
        subsection (f).''
    (c) Coordination With Minimum Funding Rules.--
            (1) 1986 code.--Section 412(c) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(13) Treatment of liability on liquidation of employer.--
        Any amount paid to a plan pursuant to section 4062(f) of the 
        Employee Retirement Income Security Act of 1974--
                    ``(A) shall be treated as not contributed by the 
                employer for purposes of subsection (b)(3)(A), and
                    ``(B) shall be treated as a net experience gain of 
                the plan under subsection (b)(3)(B)(ii).''
            (2) ERISA.--Section 302(c) of the Employee Retirement 
        Income Security Act of 1974 is amended by adding at the end the 
        following new paragraph:
            ``(13) Treatment of liability on liquidation of employer.--
        Any amount paid to a plan pursuant to section 4062(f)--
                    ``(A) shall be treated as not contributed by the 
                employer for purposes of subsection (b)(3)(A), and
                    ``(B) shall be treated as a net experience gain of 
                the plan under subsection (b)(3)(B)(ii).''
    (d) Effective Date.--The amendments made by this section shall be 
effective for liquidations initiated on or after the date of enactment 
of this Act.

SEC. 205. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.

    (a) In General.--Paragraph (1) of section 4003(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is 
amended--
            (1) by inserting ``(A)'' after ``enforce''; and
            (2) by striking the period after ``title'' and inserting 
        ``, and (B) in the case of a plan which is covered under this 
        title (other than a multiemployer plan) and for which the 
        conditions for imposition of a lien described in section 
        302(f)(1)(A) and (B) of this Act or section 412(n)(1)(A) and 
        (B) of the Internal Revenue Code of 1986 have been met, section 
        302 of this Act and section 412 of such Code.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under section 
302 of the Employee Retirement Income Security Act of 1974 or section 
412 of the Internal Revenue Code of 1986 that become due on or after 
the date of the enactment of this Act.

SEC. 206. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS FOR STANDARD 
              TERMINATION.

    (a) Notice of Noncompliance.--Section 4041(b)(2)(C)(i) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1341(b)(2)(C)(i)) is amended--
            (1) by striking subclause (I) and inserting the following 
        new subclause:
                                    ``(I) it determines, based on the 
                                notice sent under paragraph (2)(A) of 
                                subsection (b), that there is reason to 
                                believe that the plan is not sufficient 
                                for benefit liabilities, or'';
            (2) by striking the period at the end of subclause (II) and 
        inserting ``, or''; and
            (3) by adding at the end the following new subclause:
                                    ``(III) it determines that any 
                                other requirement of subparagraph (A) 
                                or (B) of this paragraph or of 
                                subsection (a)(2) has not been met, 
                                unless it further determines that the 
                                issuance of such notice would be 
                                inconsistent with the interests of 
                                participants and beneficiaries.''
    (b) Effective Date.--The amendments made by this section shall 
apply to any plan termination under section 4041(b) of the Employee 
Retirement Income Security Act of 1974 with respect to which the 
Pension Benefit Guaranty Corporation has not, as of the date of 
enactment of this Act, issued a notice of noncompliance that has become 
final, or otherwise issued a final determination that the plan 
termination is nullified.

SEC. 207. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS IN 
              BANKRUPTCY.

    (a) Amendment to the Employee Retirement Income Security Act of 
1974.--Section 204 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1054), as amended by section 121 of this Act, is 
further amended by redesignating subsection (j) as (k) and inserting a 
new subsection (j) to read as follows:
    ``(j)(1) In the case of a plan described in paragraph (3) which is 
maintained by an employer that is a debtor in a case under title 11, 
United States Code, or similar Federal or State law, no amendment of 
the plan which increases the liabilities of the plan by reason of--
            ``(A) any increase in benefits,
            ``(B) any change in the accrual of benefits, or
            ``(C) any change in the rate at which benefits become 
        nonforfeitable under the plan,
with respect to employees of the debtor, shall be effective prior to 
the effective date of such employer's plan of reorganization.
    ``(2) Paragraph (1) shall not apply to any plan amendment that--
            ``(A) the Secretary of the Treasury determines to be 
        reasonable and that provides for only de minimis increases in 
        the liabilities of the plan with respect to employees of the 
        debtor,
            ``(B) only repeals an amendment described in section 
        302(c)(8),
            ``(C) is required as a condition of qualification under 
        part I of subchapter D, of chapter 1, of the Internal Revenue 
        Code of 1986, or
            ``(D) was adopted prior to, or pursuant to a collective 
        bargaining agreement entered into prior to, the date on which 
        the employer became a debtor in a case under title 11, United 
        States Code, or similar Federal or State law.
    ``(3) This subsection shall apply only to plans (other than 
multiemployer plans) covered under section 4021 of this Act for which 
the funded current liability percentage (within the meaning of section 
302(d)(8) of this Act) is less than 100 percent after taking into 
account the effect of the amendment.
    ``(4) For purposes of this subsection, `employer' has the meaning 
set forth in section 302(c)(11)(A), without regard to section 
302(c)(11)(B).''
    (b) Amendment to Internal Revenue Code of 1986.--Section 401(a) of 
the Internal Revenue Code of 1986, as amended by section 101 of this 
Act, is further amended by adding at the end the following new 
paragraph:
            ``(33) Prohibition on benefit increases while sponsor is in 
        bankruptcy.--
                    ``(A) In general.--A trust which is part of a plan 
                to which this paragraph applies shall not constitute a 
                qualified trust under this section if an amendment to 
                such plan is adopted while the employer is a debtor in 
                a case under title 11, United States Code, or similar 
                Federal or State law, if such amendment increases 
                liabilities of the plan by reason of--
                            ``(i) any increase in benefits,
                            ``(ii) any change in the accrual of 
                        benefits, or
                            ``(iii) any change in the rate at which 
                        benefits become nonforfeitable under the plan,
                with respect to employees of the debtor, and such 
                amendment is effective prior to the effective date of 
                such employer's plan of reorganization.
                    ``(B) Exceptions.--This paragraph shall not apply 
                to any plan amendment if--
                            ``(i) the plan, were such amendment to take 
                        effect, would have a funded current liability 
                        percentage (as defined in section 412(l)(8)) of 
                        100 percent or more,
                            ``(ii) the Secretary determines that such 
                        amendment is reasonable and provides for only 
                        de minimis increases in the liabilities of the 
                        plan with respect to employees of the debtor,
                            ``(iii) such amendment only repeals an 
                        amendment described in subsection 412(c)(8), or
                            ``(iv) such amendment is required as a 
                        condition of qualification under this part.
                    ``(C) Plans to which this paragraph applies.--This 
                paragraph shall apply only to plans (other than 
                multiemployer plans) covered under section 4021 of the 
                Employee Retirement Income Security Act of 1974.
                    ``(D) Employer.--For purposes of this paragraph, 
                the term `employer' means the employer referred to in 
                section 412(c)(11) (without regard to subparagraph (B) 
                thereof).''
    (c) Effective Date.--The amendments made by this section shall 
apply to plan amendments adopted on or after the date of enactment of 
this Act.

SEC. 208. SUBSTANTIAL OWNER BENEFITS.

    (a) Modification of Phase-In of Guarantee.--Section 4022(b)(5) of 
the Employee Retirement Income Security Act of 1974 is amended by 
striking subparagraphs (B) and (C) and inserting the following new 
subparagraphs:
    ``(B) For purposes of this title, the term `majority owner' has the 
same meaning as the term `substantial owner', if `50 percent or more' 
is substituted for `more than 10 percent' wherever such phrase appears 
in subparagraph (A) of this paragraph.
    ``(C) In the case of a participant who is a majority owner, the 
amount of benefits guaranteed under this section shall not exceed the 
product of--
            ``(i) a fraction (not to exceed 1) the numerator of which 
        is the number of years from the later of the effective date or 
        the adoption date of the plan, and the denominator of which is 
        30, and
            ``(ii) the amount of the majority owner's monthly benefits 
        guaranteed under subsection (a) (as limited by paragraph (3) of 
        this subsection).''
    (b) Modification of Allocation of Assets.--
            (1) Section 4044(a)(4)(B) of such Act (29 U.S.C. 
        1344(a)(4)(B)) is amended by adding ``(C)'' at the end of 
        ``section 4022(b)(5)''.
            (2) Section 4044(b) of such Act is amended--
                    (A) in paragraph (2), by inserting ``(4),'' before 
                ``(5)'', and by inserting a comma after ``(5)'';
                    (B) by redesignating paragraphs (3) through (6) as 
                paragraphs (4) through (7), respectively; and
                    (C) by inserting a new paragraph (3) to read as 
                follows:
            ``(3) If assets available for allocation under paragraph 
        (4) of subsection (a) are insufficient to satisfy in full the 
        benefits of all individuals who are described in that 
        paragraph, the assets shall be allocated first to benefits 
        described in subparagraph (A) of that paragraph. Any remaining 
        assets shall then be allocated to subparagraph (B). If assets 
        allocated to subparagraph (B) are insufficient to satisfy in 
        full the benefits in that subparagraph, the assets shall be 
        allocated pro rata among individuals on the basis of the 
        present value (as of the termination date) of their respective 
        benefits described in that subparagraph.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for plan terminations under section 4041(c) of the Employee 
Retirement Income Security Act of 1974 with respect to which notices of 
intent to terminate are provided under section 4041(a)(2) of such Act, 
or under section 4042 of such Act with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

SEC. 209. PHASE-OUT OF VARIABLE RATE PREMIUM CAP.

    (a) In General.--Subparagraph (E) of section 4006(a)(3) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)) is amended by striking clause (iv), and by redesignating 
clause (v) as clause (iv).
    (b) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act, except that, for plan 
years beginning on or after July 1, 1994 and before July 1, 1996, the 
additional premium payable with respect to any participant by reason of 
this amendment shall not exceed the sum of--
            (1) $53, and
            (2) the product derived by multiplying--
                    (A) the excess (if any) of--
                            (i) the amount determined under clause (ii) 
                        of section 4006(a)(3)(E) of the Employee 
                        Retirement Income Security Act of 1974, over
                            (ii) $53, by
                    (B) the applicable percentage.
        For purposes of this subsection, the applicable percentage 
        shall be the percentage specified in the following table:



                                                                        
              For the plan year beginning:                              
                                                          The applicable
        on or after                  but before           percentage is:
                                                                        
July 1, 1994...............  July 1, 1995..............     20 percent  
July 1, 1995...............  July 1, 1996..............     60 percent  
                                                                        

                    TITLE III--PARTICIPANT SERVICES

SEC. 301. DISCLOSURE TO PARTICIPANTS.

    (a) Participant Notice Requirement.--Subtitle A of title IV of the 
Employee Retirement Income Security Act of 1974 (as amended by section 
203 of this Act) is further amended by adding at the end the following 
new section:

``SEC. 4011. NOTICE TO PARTICIPANTS.

    ``(a) In General.--The plan administrator of a plan subject to the 
additional premium under section 4006(a)(3)(E) shall provide, in a form 
and manner and at such time as prescribed in regulations of the 
corporation, notice to plan participants and beneficiaries of the 
plan's funding status and the limits on the corporation's guaranty 
should the plan terminate while underfunded. Such notice shall be 
written in a manner so as to be understood by the average plan 
participant.
    ``(b) Exception.--Subsection (a) shall not apply to any plan which 
for the plan year has a funded current liability percentage (as defined 
in section 302(d)(8) without regard to subparagraph (E) thereof) of at 
least 90 percent.''
    (b) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4010 (as added by section 203 of this Act) the following new 
item:

``Sec. 4011. Notice to participants.''
    (c) Effective Date.--The amendment made by this section shall be 
effective for plan years beginning after the date of enactment of this 
Act.

SEC. 302. MISSING PARTICIPANTS.

    (a) In General.--Subtitle C of title IV of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by 
adding at the end the following new section:

``SEC. 4051. MISSING PARTICIPANTS.

    ``(a) General Rule.--
            ``(1) Payment to the corporation.--A plan administrator 
        satisfies section 4041(b)(3)(A) in the case of a missing 
        participant only if the plan administrator--
                    ``(A) transfers the participant's designated 
                benefit to the corporation or purchases an irrevocable 
                commitment from an insurer in accordance with clause 
                (i) of section 4041(b)(3)(A), and
                    ``(B) provides the corporation such information and 
                certifications with respect to such designated benefits 
                or irrevocable commitments as the corporation shall 
                specify.
            ``(2) Treatment of transferred assets.--A transfer to the 
        corporation under this section shall be treated as a transfer 
        of assets from a terminated plan to the corporation as trustee, 
        and shall be held with assets of terminated plans for which the 
        corporation is trustee under section 4042, subject to the rules 
        set forth in that section.
            ``(3) Payment by the corporation.--After a missing 
        participant whose designated benefit was transferred to the 
        corporation is located--
                    ``(A) in any case in which the plan could have 
                distributed the benefit of the missing participant in a 
                single sum without participant or spousal consent under 
                section 205(g), the corporation shall pay the 
                participant or beneficiary a single sum benefit equal 
                to the designated benefit paid the corporation plus 
                interest as specified by the corporation, and
                    ``(B) in any other case, the corporation shall pay 
                a benefit based on the designated benefit and the 
                assumptions prescribed by the corporation at the time 
                that the corporation received the designated benefit.
        The corporation shall make payments under subparagraph (B) 
        available in the same forms and at the same times as a 
        guaranteed benefit under section 4022 would be available to be 
        paid, except that the corporation may make a benefit available 
        in the form of a single sum if the plan provided a single sum 
        benefit (other than a single sum described in subsection 
        (b)(2)(A)).
    ``(b) Definitions.--For purposes of this section--
            ``(1) Missing participant.--The term `missing participant' 
        means a participant or beneficiary under a terminating plan 
        whom the plan administrator cannot locate after a diligent 
        search.
            ``(2) Designated benefit.--The term `designated benefit' 
        means the single sum benefit the participant would receive--
                    ``(A) under the plan's assumptions, in the case of 
                a distribution that can be made without participant or 
                spousal consent under section 205(g);
                    ``(B) under the assumptions of the corporation in 
                effect on the date that the designated benefit is 
                transferred to the corporation, in the case of a plan 
                that does not pay any single sums other than those 
                described in subparagraph (A); or
                    ``(C) under the assumptions of the corporation or 
                of the plan, whichever provides the higher single sum, 
                in the case of a plan that pays a single sum other than 
                those described in subparagraph (A).
    ``(c) Regulatory Authority.--The corporation shall prescribe such 
regulations as are necessary to carry out the purposes of this section, 
including rules relating to what will be considered a diligent search, 
the amount payable to the corporation, and the amount to be paid by the 
corporation.''
    (b) Conforming Title IV Amendments.--
            (1) Amendment to section 4003.--Section 4003(a) of such Act 
        (29 U.S.C. 1303(a)) is amended in the second sentence by 
        inserting before the period the following: ``and whether 
        section 4051(a) has been satisfied''.
            (2) Amendment to section 4005.--Section 4005(b)(2)(A) of 
        such Act (29 U.S.C. 1305(b)(2)(A)) is amended by inserting ``or 
        benefits payable under section 4051'' after ``section 4022A''.
            (3) Amendment to section 4041.--Section 4041(b)(3)(A)(ii) 
        of such Act (29 U.S.C. 1341(b)(3)(A)(ii)) is amended by adding 
        at the end the following new sentence: ``A transfer of assets 
        to the corporation in accordance with section 4051 on behalf of 
        a missing participant shall satisfy this subparagraph with 
        respect to such participant.''
    (c) Conforming ERISA Amendments.--
            (1) The table of contents contained in section 1 of the 
        Employee Retirement Income Security Act of 1974 is amended by 
        inserting after the item related to section 4050 (as added by 
        section 202 of this Act) the following new item:

``Sec. 4051. Missing participants.''
            (2) Section 206 of such Act (29 U.S.C. 1056) is amended by 
        adding at the end the following new subsection:
    ``(e) Missing Participants in Terminated Plans.--In the case of a 
plan covered by title IV, the plan shall provide that, upon termination 
of the plan, benefits of missing participants shall be treated in 
accordance with section 4051.''
    (d) Conforming Internal Revenue Code Amendments.--Section 401(a) of 
the Internal Revenue Code of 1986, as amended by section 207 of this 
Act, is further amended by inserting after paragraph (33) the following 
new paragraph:
            ``(34) Benefits of missing participants on plan 
        termination.--In the case of a plan covered by title IV of the 
        Employee Retirement Income Security Act of 1974, a trust 
        forming part of such plan shall not be treated as failing to 
        constitute a qualified trust under this section merely because 
        the pension plan of which such trust is a part, upon its 
        termination, transfers benefits of missing participants to the 
        Pension Benefit Guaranty Corporation in accordance with section 
        4051 of such Act.''
    (e) Effective Date.--The provisions of this section shall be 
effective with respect to distributions that occur in plan years 
commencing after final regulations implementing these provisions are 
prescribed by the Pension Benefit Guaranty Corporation.

SEC. 303. MODIFICATION OF MAXIMUM GUARANTEE FOR DISABILITY BENEFITS.

    (a) In General.--Section 4022(b)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended by adding 
at the end the following new sentences: ``The maximum guaranteed 
monthly benefit shall not be reduced solely on account of the age of a 
participant in the case of a benefit payable by reason of disability, 
if the participant satisfies the definition of disability under titles 
II and XVI of the Social Security Act, and the regulations thereunder. 
If a benefit payable by reason of disability is converted to an early 
or normal retirement benefit for reasons other than a change in the 
health of the participant, such early or normal retirement benefit 
shall be treated as a continuation of the benefit payable by reason of 
disability and this subparagraph shall continue to apply.''
    (b) Effective Date.--The amendment made by this section shall be 
effective for plan terminations under section 4041(c) of the Employee 
Retirement Income Security Act of 1974 with respect to which notices of 
intent to terminate are provided under section 4041(a)(2) of such Act, 
or under section 4042 of such Act with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

                   TITLE IV--MISCELLANEOUS AMENDMENTS

SEC. 401. ERISA CITATION.

    (a) In General.--Section 404(g)(4) of the Internal Revenue Code of 
1986 is amended by striking ``the Single Employer Pension Plan 
Amendments Act of 1986'' and inserting ``the Retirement Protection Act 
of 1994''.
    (b) Effective Date.--The amendment made by this section shall be 
effective on the date of enactment of this Act.

SEC. 402. DEFINITION OF CONTRIBUTING SPONSOR.

    (a) In General.--Paragraph (13) of section 4001(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301(a)(13)) is 
amended by striking ``means a person--'' and all that follows and 
inserting ``means a person described in section 302(c)(11)(A) of this 
Act (without regard to section 302(c)(11)(B) of this Act) or section 
412(c)(11)(A) of the Internal Revenue Code of 1986 (without regard to 
section 412(c)(11)(B) of such Code).''
    (b) Effective Date.--The amendment made by this section shall be 
effective as if included in the Pension Protection Act.

SEC. 403. DISTRESS TERMINATION CRITERIA FOR BANKING INSTITUTIONS.

    (a) Clarification of Distress Criterion.--Subclause (I) of section 
4041(c)(2)(B)(i) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341(c)(2)(B)(i)) is amended by inserting after ``under any 
similar'' the following: ``Federal law or''.
    (b) Effective Date.--The amendment made by this section shall be 
effective as if included in the Single-Employer Pension Plan Amendments 
Act of 1986.

SEC. 404. SINGLE SUM DISTRIBUTIONS.

    (a) Amendments to Internal Revenue Code of 1986 Relating to Minimum 
Benefits.--
            (1) Determination of present value for purposes of 
        restrictions on mandatory distributions.--Subparagraph (B) of 
        section 411(a)(11) of the Internal Revenue Code of 1986 is 
        amended to read as follows:
                    ``(B) Determination of present value.--For purposes 
                of subparagraph (A), the present value shall be 
                calculated in accordance with section 417(e)(3).''
            (2) Determination of present value for purposes of 
        restrictions on cash-outs.--Paragraph (3) of section 417(e) of 
        such Code is amended to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i)--
                                    ``(I) Applicable mortality table.--
                                The term `applicable mortality table' 
                                means the table prescribed by the 
                                Secretary. Such table shall be based on 
                                the prevailing commissioners' standard 
                                table (described in section 
                                807(d)(5)(A)) used to determine 
                                reserves for group annuity contracts 
                                issued on the date as of which present 
                                value is being determined (without 
                                regard to any other subparagraph of 
                                section 807(d)(5)).
                                    ``(II) Applicable interest rate.--
                                The term `applicable interest rate' 
                                means the annual rate of interest on 
                                30-year Treasury securities for the 
                                month before the date of distribution 
                                or such other time as the Secretary may 
                                by regulations prescribe.
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect before the 
                date of the enactment of the Retirement Protection Act 
                of 1994, the present value of any distribution made 
                before the earlier of--
                            ``(i) the later of the date a plan 
                        amendment applying subparagraph (A) is adopted 
                        or made effective, or
                            ``(ii) the first day of the first plan year 
                        beginning after December 31, 1999,
                shall be calculated, for purposes of paragraphs (1) and 
                (2), using the interest rate determined under the 
                regulations of the Pension Benefit Guaranty Corporation 
                for determining the present value of a lump sum 
                distribution on plan termination that were in effect on 
                September 1, 1993, and using the provisions of the plan 
                as in effect on the day before such date of enactment; 
                but only if such provisions of the plan met the 
                requirements of section 417(e)(3) as in effect on the 
                day before such date of enactment.''
    (b) Amendments to Internal Revenue Code of 1986 Relating to Maximum 
Benefits.--Subparagraph (E) of section 415(b)(2) of such Code is 
amended--
            (1) by redesignating clauses (ii) and (iii) as clauses 
        (iii) and (iv), respectively,
            (2) by striking clause (i) and inserting the following new 
        clauses:
                            ``(i) Except as provided in clause (ii), 
                        for purposes of adjusting any benefit or 
                        limitation under subparagraph (B) or (C), the 
                        interest rate assumption shall not be less than 
                        the greater of 5 percent or the rate specified 
                        in the plan.
                            ``(ii) For purposes of adjusting the 
                        benefit or limitation of any form of benefit 
                        subject to section 417(e)(3), the applicable 
                        interest rate (as defined in section 417(e)(3)) 
                        shall be substituted for `5 percent' in clause 
                        (i).'', and
            (3) by adding at the end the following new clause:
                            ``(v) For purposes of adjusting any benefit 
                        or limitation under subparagraph (B), (C), or 
                        (D), the mortality table used shall be the 
                        table prescribed by the Secretary. Such table 
                        shall be based on the prevailing commissioners' 
                        standard table (described in section 
                        807(d)(5)(A)) used to determine reserves for 
                        group annuity contracts issued on the date the 
                        adjustment is being made (without regard to any 
                        other subparagraph of section 807(d)(5)).''
    (c) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Determination of present value for purposes of 
        restrictions on mandatory distributions.--Section 203(e)(2) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1053(e)(2)) is amended to read as follows:
    ``(2) For purposes of paragraph (1), the present value shall be 
calculated in accordance with section 205(g)(3).''
            (2) Determination of present value for purposes of 
        restrictions on cash-outs.--Section 205(g)(3) of such Act (29 
        U.S.C. 1055(g)(3)) is amended to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i)--
                                    ``(I) Applicable mortality table.--
                                The term `applicable mortality table' 
                                means the table prescribed by the 
                                Secretary of the Treasury. Such table 
                                shall be based on the prevailing 
                                commissioners' standard table 
                                (described in section 807(d)(5)(A) of 
                                the Internal Revenue Code of 1986) used 
                                to determine reserves for group annuity 
                                contracts issued on the date as of 
                                which present value is being determined 
                                (without regard to any other 
                                subparagraph of section 807(d)(5) of 
                                such Code).
                                    ``(II) Applicable interest rate.--
                                The term `applicable interest rate' 
                                means the annual rate of interest on 
                                30-year Treasury securities for the 
                                month before the date of distribution 
                                or such other time as the Secretary of 
                                the Treasury may by regulations 
                                prescribe.
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect prior to the 
                date of the enactment of the Retirement Protection Act 
                of 1994, the present value of any distribution made 
                before the earlier of--
                            ``(i) the later of when a plan amendment 
                        applying subparagraph (A) is adopted or made 
                        effective, or
                            ``(ii) the first day of the first plan year 
                        beginning after December 31, 1999,
                shall be calculated, for purposes of paragraphs (1) and 
                (2), using the interest rate determined under the 
                regulations of the Pension Benefit Guaranty Corporation 
                for determining the present value of a lump sum 
                distribution on plan termination that were in effect on 
                September 1, 1993, and using the provisions of the plan 
                as in effect on the day before such date of enactment; 
                but only if such provisions of the plan met the 
                requirements of section 205(g)(3) as in effect on the 
                day before such date of enactment.''
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years and limitation years beginning after 
        December 31, 1994; except that an employer may elect to treat 
        the amendments made by this section as being effective on or 
        after the date of enactment.
            (2) No reduction in accrued benefits.--A participant's 
        accrued benefit shall not be considered to be reduced in 
        violation of section 411(d)(6) of the Internal Revenue Code of 
        1986 or section 204(g) of the Employee Retirement Income 
        Security Act of 1974 merely because (A) the benefit is 
        determined in accordance with section 417(e)(3)(A) of such 
        Code, as amended by this Act, or section 205(g)(3) of the 
        Employee Retirement Income Security Act of 1974, as amended by 
        this Act, or (B) the plan applies section 415(b)(2)(E) of such 
        Code, as amended by this Act.
            (3) Section 415.--
                    (A) No reduction required.--An accrued benefit 
                shall not be required to be reduced below the accrued 
                benefit as of the last day of the last plan year 
                beginning before January 1, 1995, merely because of the 
                amendments made by subsection (b).
                    (B) Timing of plan amendment.--A plan that operates 
                in accordance with the amendments made by subsection 
                (b) shall not be treated as failing to satisfy section 
                401(a) of the Internal Revenue Code of 1986 or as not 
                being operated in accordance with the provisions of the 
                plan until such date as the Secretary of the Treasury 
                provides merely because the plan has not been amended 
                to include the amendments made by subsection (b).

SEC. 405. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) Clarification of applicability of provision.--Paragraph 
        (2) of section 412(n) of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new sentence: ``This 
        subsection shall not apply to any plan to which section 4021 of 
        the Employee Retirement Income Security Act of 1974 does not 
        apply (as such section is in effect on the date of the 
        enactment of the Retirement Protection Act of 1994).''.
            (2) Repeal of $1,000,000 offset.--Paragraph (3) of section 
        412(n) of such Code is amended to read as follows:
            ``(3) Amount of lien.--For purposes of paragraph (1), the 
        amount of the lien shall be equal to the aggregate unpaid 
        balance of required installments and other payments required 
        under this section (including interest)--
                    ``(A) for plan years beginning after 1987, and
                    ``(B) for which payment has not been made before 
                the due date.''
            (3) Repeal of 60-day delay.--Section 412(n)(4)(B) of such 
        Code is amended by striking ``60th day following the''.
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) Clarification of applicability of provision.--Section 
        302(f)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1082(f)(1)) is amended by striking ``to which 
        this section applies'' and inserting ``covered under section 
        4021 of this Act''.
            (2) Repeal of $1,000,000 offset.--Paragraph (3) of section 
        302(f) of such Act is amended to read as follows:
            ``(3) Amount of lien.--For purposes of paragraph (1), the 
        amount of the lien shall be equal to the aggregate unpaid 
        balance of required installments and other payments required 
        under this section (including interest)--
                    ``(A) for plan years beginning after 1987, and
                    ``(B) for which payment has not been made before 
                the due date.''
            (3) Repeal of 60-day delay.--Section 302(f)(4)(B) of such 
        Act is amended by striking ``60th day following the''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under section 
412 of the Internal Revenue Code of 1986 or under part 3 of subtitle B 
of the Employee Retirement Income Security Act of 1974 that become due 
on or after the date of enactment.

SEC. 406. ROUNDING RULES FOR COST-OF-LIVING ADJUSTMENTS.

    (a) Cost-of-Living Adjustment for Compensation Limit.--Section 
401(a)(17)(B) of the Internal Revenue Code of 1986 is revised to read 
as follows:
                    ``(B) Cost-of-Living Adjustment.--The Secretary 
                shall adjust annually the $150,000 amount in 
                subparagraph (A) for increases in the cost-of-living at 
                the same time and in the same manner as adjustments 
                under section 415(d); except that the base period shall 
                be the calendar quarter beginning October 1, 1993, and 
                any increase which is not a multiple of $10,000 shall 
                be rounded to the next lowest multiple of $10,000.''
    (b) Cost-of-Living Adjustment for Maximum Defined Benefit Amount 
and Maximum Annual Addition.--
            (1) In general.--Section 415(d) of such Code is amended to 
        read as follows:
    ``(d) Cost-of-Living Adjustments.--
            ``(1) In general.--The Secretary shall adjust annually--
                    ``(A) the $90,000 amount in subsection (b)(1)(A),
                    ``(B) in the case of a participant who separated 
                from service, the amount taken into account under 
                subsection (b)(1)(B), and
                    ``(C) the $30,000 amount in subsection (c)(1)(A),
        for increases in the cost-of-living in accordance with 
        regulations prescribed by the Secretary.
            ``(2) Method.--The regulations prescribed under paragraph 
        (1) shall provide for--
                    ``(A) an adjustment with respect to any calendar 
                year based on the increase in the applicable index for 
                the calendar quarter ending September 30 of the 
                preceding calendar year over such index for the base 
                period, and
                    ``(B) adjustment procedures which are similar to 
                the procedures used to adjust benefit amounts under 
                section 215(i)(2)(A) of the Social Security Act.
            ``(3) Base period.--For purposes of paragraph (2)--
                    ``(A) $90,000 amount.--The base period taken into 
                account for purposes of paragraph (1)(A) is the 
                calendar quarter beginning October 1, 1986.
                    ``(B) Separations after december 31, 1994.--The 
                base period taken into account for purposes of 
                paragraph (1)(B) with respect to individuals separating 
                from service with the employer after December 31, 1994, 
                is the calendar quarter beginning July 1 of the 
                calendar year preceding the calendar year in which such 
                separation occurs.
                    ``(C) Separations before january 1, 1995.--The base 
                period taken into account for purposes of paragraph 
                (1)(B) with respect to individuals separating from 
                service with the employer before January 1, 1995, is 
                the calendar quarter beginning October 1 of the 
                calendar year preceding the calendar year in which such 
                separation occurs.
                    ``(D) $30,000 amount.--The base period taken into 
                account for purposes of paragraph (1)(C) is the 
                calendar quarter beginning October 1, 1993.''
            ``(4) Rounding.--Any increase under subparagraph (A) or (C) 
        of paragraph (1) which is not a multiple of $5,000 shall be 
        rounded to the next lowest multiple of $5,000.''
            (2) Conforming amendment.--Section 415(c)(1)(A) of such 
        Code is amended by striking ``(or, if greater, \1/4\ of the 
        dollar limitation in effect under subsection (b)(1)(A))''.
    (c) Cost-of-Living Adjustment for Maximum Salary Deferral.--Section 
402(g)(5) of such Code is amended by inserting before the period ``; 
except that any increase under this paragraph which is not a multiple 
of $500 shall be rounded to the next lowest multiple of $500''.
    (d) Cost-of-Living Adjustment for Eligibility for Simplified 
Employee Pensions.--Section 408(k)(8) of such Code is amended by 
inserting before the period ``; except that any increase in the $300 
amount which is not a multiple of $50 shall be rounded to the next 
lowest multiple of $50''.
    (e) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 1994.

SEC. 407. FUNDING OF RESTORED PLANS.

    Any changes made by this Act to section 412 of the Internal Revenue 
Code of 1986 or to part 3 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 shall not apply to a plan which 
is, on the date of enactment of this Act, subject to a restoration 
payment schedule order issued by the Pension Benefit Guaranty 
Corporation that meets the requirements of section 1.412(c)(1)-3 of the 
Treasury Regulations.

SEC. 408. STUDY OF FUNDING STATUS OF FEDERAL, STATE, AND LOCAL 
              GOVERNMENT PENSION PLANS.

    (a) In General.--The Comptroller General shall conduct a study of 
the underfunding of Federal, State, and local government pension plans. 
Such study shall address the causes and implications of such 
underfunding, as well as the feasibility of requiring such plans to 
comply with funding, reporting, and disclosure requirements imposed by 
Federal law on private pension plans.
    (b) Report.--The report of such study shall be submitted not later 
than April 1, 1995, to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.

                        TITLE V--EFFECTIVE DATES

SEC. 501. EFFECTIVE DATES.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall be effective on the date of enactment of this Act.

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

     (a) Short Title.--This Act may be cited as the ``Retirement 
Protection Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
                     TITLE I--PENSION PLAN FUNDING

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

Sec. 101. Minimum funding requirements.
Sec. 102. Limitation on changes in current liability assumptions.
Sec. 103. Anticipation of bargained benefit increases.
Sec. 104. Modification of quarterly contribution requirement.
      Subtitle B--Amendments to the Internal Revenue Code of 1986

Sec. 121. Minimum funding requirements.
Sec. 122. Limitation on changes in current liability assumptions.
Sec. 123. Anticipation of bargained benefit increases.
Sec. 124. Modification of quarterly contribution requirement.
Sec. 125. Exceptions to excise tax on nondeductible contributions.
  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

Sec. 201. Reportable events.
Sec. 202. Alternative to involuntary termination.
Sec. 203. Certain information required to be furnished to pbgc.
Sec. 204. Liability upon liquidation of contributing sponsor or 
                            controlled group member if plan remains 
                            ongoing.
Sec. 205. Enforcement of minimum funding requirements.
Sec. 206. Remedies for noncompliance with requirements for standard 
                            termination.
Sec. 207. Prohibition on benefit increases where plan sponsor is in 
                            bankruptcy.
Sec. 208. Substantial owner benefits.
Sec. 209. Phase-out of variable rate premium cap.
                    TITLE III--PARTICIPANT SERVICES

Sec. 301. Disclosure to participants.
Sec. 302. Missing participants.
Sec. 303. Modification of maximum guarantee for disability benefits.
                   TITLE IV--MISCELLANEOUS AMENDMENTS

Sec. 401. ERISA citation.
Sec. 402. Definition of contributing sponsor.
Sec. 403. Technical corrections.
Sec. 404. Distress termination criteria for banking institutions.
Sec. 405. Single sum distributions.
Sec. 406. Adjustments to lien for missed minimum funding contributions.
Sec. 407. Rounding rules for cost-of-living adjustments.
Sec. 408. Funding of restored plans.
Sec. 409. Study of funding status of federal, State, and local 
                            government pension plans.
               TITLE V--EFFECTIVE DATES AND RELATED RULES

Sec. 501. Effective dates.
Sec. 502. Delay in changes to prevailing commissioners' table.

                     TITLE I--PENSION PLAN FUNDING

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

SEC. 101. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Limitation of additional funding requirement to plans 
        having a funded current liability percentage of less than 90 
        percent.--Paragraph (1) of section 302(d) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1082(d)) is 
        amended by striking ``which has an unfunded current liability'' 
        and inserting ``which has a funded current liability percentage 
        of less than 90 percent (determined without regard to paragraph 
        (8)(E))''.
            (2) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 302(d)(1)(A) of such Act 
                is amended to read as follows:
                            ``(ii)(I) for plan years beginning prior to 
                        January 1, 2000, the sum of the charges under 
                        subsection (b)(2) (other than 5 percent of the 
                        charges established prior to January 1, 1995, 
                        under clauses (iv) and (v) of subsection 
                        (b)(2)(B)), reduced by the sum of the credits 
                        under subsection (b)(3) (other than 5 percent 
                        of the credits established prior to January 1, 
                        1995, under clauses (ii) and (iii) of 
                        subsection (b)(3)(B)), or
                            ``(II) for plan years beginning after 
                        December 31, 1999, the sum of the charges under 
                        subsection (b)(2), reduced by the sum of the 
                        credits under subparagraph (B) of subsection 
                        (b)(3), plus''.
                    (B) The last sentence in section 302(d)(1) of such 
                Act is amended to read as follows:
        ``Such increase shall not exceed the amount which, after taking 
        into account charges (other than the additional charge under 
        this subsection) and credits under subsection (b), is necessary 
        to increase the funded current liability percentage (taking 
        into account the expected increase in current liability due to 
        benefits accruing during the plan year) to 100 percent.''
            (3) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 302(d) of such Act is amended--
                    (A) by striking ``plus'' at the end of subparagraph 
                (A);
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (4) Increase in unfunded old liability.--
                    (A) Paragraph (3) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraphs:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) In general.--The unfunded old 
                        liability amount with respect to any plan for 
                        any plan year shall be increased by the amount 
                        necessary to amortize the amount of additional 
                        unfunded old liability under the plan in equal 
                        annual installments over a period of 12 plan 
                        years (beginning with the first plan year 
                        beginning after December 31, 1994).
                            ``(ii) Additional unfunded old liability.--
                        For purposes of clause (i), the term 
                        `additional unfunded old liability' means the 
                        amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the assumptions 
                                required by paragraph (7)(C) as in 
                                effect for plan years beginning after 
                                December 31, 1994, exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of such first 
                                plan year, valued using the same 
                                assumptions used under subclause (I) 
                                (other than the assumptions required by 
                                paragraph (7)(C)), using the prior 
                                interest rate, and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) Prior interest rate.--For purposes 
                        of clause (ii), the term `prior interest rate' 
                        means the rate of interest that is the same 
                        percentage of the weighted average under 
                        subsection (b)(5)(B)(ii)(I) for the first plan 
                        year beginning after December 31, 1994, as the 
                        rate of interest used by the plan to determine 
                        current liability for the first plan year 
                        beginning after December 31, 1992, is of the 
                        weighted average under subsection 
                        (b)(5)(B)(ii)(I) for such first plan year 
                        beginning after December 31, 1992.
                    ``(E) Optional rule for additional unfunded old 
                liability.--
                            ``(i) In general.--If an election is made 
                        under clause (ii), the term `additional 
                        unfunded old liability' means (in lieu of the 
                        additional unfunded old liability described in 
                        clause (ii) of subparagraph (D)), the amount 
                        (if any) by which--
                                    ``(I) the unfunded current 
                                liability of the plan as of the 
                                beginning of the first plan year 
                                beginning after December 31, 1994, 
                                valued using the assumptions required 
                                by paragraph (7)(C) as in effect for 
                                plan years beginning after December 31, 
                                1994, exceeds
                                    ``(II) the unamortized portion of 
                                the unfunded old liability under the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994.
                            ``(ii) Election.--
                                    ``(I) An employer may irrevocably 
                                elect, at such time and in such manner 
                                as shall be prescribed by the Secretary 
                                of the Treasury, to apply the 
                                provisions of this subparagraph as of 
                                the beginning of the first plan year 
                                beginning after December 31, 1994.
                                    ``(II) If an election is made under 
                                this clause, the increase under 
                                paragraph (1) for any plan year 
                                beginning after December 31, 1994, and 
                                before January 1, 2002, shall not be 
                                less than the increase that would be 
                                required under paragraph (1) if the 
                                provisions of this title as in effect 
                                for plan years beginning before January 
                                1, 1995, had remained in effect.''
            (5) Applicable percentage for determining unfunded new 
        liability amount.--Subparagraph (C) of section 302(d)(4) of 
        such Act is amended--
                    (A) by striking ``.25'' and inserting ``.40'', and
                    (B) by striking ``35'' and inserting ``60''.
            (6) Unpredictable contingent event amount.--
                    (A) Subparagraph (A) of section 302(d)(5) of such 
                Act is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding after clause (ii) the 
                        following new clause:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
                    (C) Clause (ii) of section 302(e)(4)(D) of such Act 
                is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before subclause (I);
                            (ii) by striking ``or'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``, or''; and
                            (iv) by adding after subclause (II) the 
                        following new clause:
                                    ``(III) 25 percent of the amount 
                                determined under subsection 
                                (d)(5)(A)(iii) for the plan year.''
            (7) Required interest rate and mortality assumptions for 
        determining current liability.--Subparagraph (C) of section 
        302(d)(7) of such Act is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except that the 
                        highest rate in the permissible range under 
                        subparagraph (B)(ii) thereof shall not exceed 
                        105 percent of the weighted average referred to 
                        in such subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the table prescribed by the 
                        Secretary of the Treasury.
                The table prescribed under clause (ii) shall be based 
                on the prevailing commissioners' standard table 
                (described in section 807(d)(5)(A) of the Internal 
                Revenue Code of 1986) used to determine reserves for 
                group annuity contracts issued on the date as of which 
                current liability is determined (without regard to any 
                other subparagraph of section 807(d)(5) of such Code). 
                The Secretary shall prescribe separate tables, which 
                may be used instead of the table described in the 
                preceding sentence, to calculate mortality rates for 
                participants who satisfy the definition of disability 
                under titles II and XVI of the Social Security Act and 
                the regulations thereunder.''
            (8) Transition rule.--Section 302(d) of such Act is amended 
        by adding at the end the following new paragraph:
            ``(9) Phase-in of increases in funding required by 
        retirement protection act of 1994.--
                    ``(A) In general.--For any applicable plan year, at 
                the election of the employer, the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would be required 
                        under paragraph (1) if the provisions of this 
                        title as in effect for plan years beginning 
                        before January 1, 1995, had remained in effect, 
                        or
                            ``(ii) the amount which, after taking into 
                        account charges (other than the additional 
                        charge under this subsection) and credits under 
                        subsection (b), is necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        percentage equal to the sum of the initial 
                        funded current liability percentage of the plan 
                        plus the applicable number of percentage points 
                        for such applicable plan year.
                    ``(B) Applicable number of percentage points.--
                            ``(i) Initial funded current liability 
                        percentage of 75 percent or less.--Except as 
                        provided in clause (ii), for plans with an 
                        initial funded current liability percentage of 
                        75 percent or less, the applicable number of 
                        percentage points for the applicable plan year 
                        is as follows:

                ``In the case of applicable
                                               The applicable number of
                  plan years beginning in:
                                                percentage points is:  
                            1995.....................           3      
                            1996.....................           6      
                            1997.....................           9      
                            1998.....................          12      
                            1999.....................          15      
                            2000.....................          19      
                            2001.....................         24.      
                            ``(ii) Other cases.--In the case of a plan 
                        to which this clause applies, the applicable 
                        number of percentage points for any such 
                        applicable plan year is the sum of--
                                    ``(I) 2 percentage points;
                                    ``(II) the applicable number of 
                                percentage points (if any) under this 
                                clause for the preceding applicable 
                                plan year;
                                    ``(III) the product of .10 
                                multiplied by the excess (if any) of 
                                (a) 85 percentage points over (b) the 
                                sum of the initial funded current 
                                liability percentage and the number 
                                determined under subclause (II);
                                    ``(IV) for applicable plan years 
                                beginning in 2000, 1 percentage point; 
                                and
                                    ``(V) for applicable plan years 
                                beginning in 2001, 2 percentage points.
                            ``(iii) Plans to which clause (ii) 
                        applies.--
                                    ``(I) In general.--Clause (ii) 
                                shall apply to a plan for an applicable 
                                plan year if the initial funded current 
                                liability percentage of such plan is 
                                more than 75 percent.
                                    ``(II) Plans initially under clause 
                                (i).--In the case of a plan which (but 
                                for this subclause) has an initial 
                                funded current liability percentage of 
                                75 percent or less, clause (ii) (and 
                                not clause (i)) shall apply to such 
                                plan with respect to applicable plan 
                                years beginning after the first 
                                applicable plan year for which the sum 
                                of the initial funded current liability 
                                percentage and the applicable number of 
                                percentage points (determined under 
                                clause (i)) exceeds 75 percent. For 
                                purposes of applying clause (ii) to 
                                such a plan, the initial funded current 
                                liability percentage of such plan shall 
                                be treated as being the sum referred to 
                                in the preceding sentence.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) The term `applicable plan year' means 
                        a plan year beginning after December 31, 1994, 
                        and before January 1, 2002.
                            ``(ii) The term `initial funded current 
                        liability percentage' means the funded current 
                        liability percentage as of the first day of the 
                        first plan year beginning after December 31, 
                        1994.''
            (9) Liquidity requirement.--
                    (A) Section 302(e) of such Act is amended by 
                redesignating paragraph (5) as paragraph (6) and by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Liquidity requirement.--
                    ``(A) In general.--A plan to which this paragraph 
                applies shall be treated as failing to pay the full 
                amount of any required installment to the extent that 
                the value of the liquid assets paid in such installment 
                is less than the liquidity shortfall (whether or not 
                such liquidity shortfall exceeds the amount of such 
                installment required to be paid but for this 
                paragraph).
                    ``(B) Plans to which paragraph applies.--This 
                paragraph shall apply to a defined benefit plan to 
                which subsection (d) applies and which--
                            ``(i) is required to pay installments under 
                        this subsection for a plan year, and
                            ``(ii) has a liquidity shortfall for any 
                        quarter during such plan year.
                    ``(C) Period of underpayment.--For purposes of 
                paragraph (1), any portion of an installment that is 
                treated as not paid under subparagraph (A) shall 
                continue to be treated as unpaid until the close of the 
                quarter in which the due date for such installment 
                occurs.
                    ``(D) Limitation on increase.--If the amount of any 
                required installment is increased by reason of 
                subparagraph (A), in no event shall such increase 
                exceed the amount which, when added to prior 
                installments for the plan year, is necessary to 
                increase the funded current liability percentage 
                (taking into account the expected increase in current 
                liability due to benefits accruing during the plan 
                year) to 100 percent.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Liquidity shortfall.--The term 
                        `liquidity shortfall' means, with respect to 
                        any required installment, an amount equal to 
                        the excess (as of the last day of the quarter 
                        for which such installment is made) of the base 
                        amount with respect to such quarter over the 
                        value (as of such last day) of the plan's 
                        liquid assets.
                            ``(ii) Base amount.--
                                    ``(I) In general.--The term `base 
                                amount' means, with respect to any 
                                quarter, an amount equal to 3 times the 
                                sum of the adjusted disbursements from 
                                the plan for the 12 months ending on 
                                the last day of such quarter.
                                    ``(II) Special rule.--If the amount 
                                determined under clause (i) exceeds an 
                                amount equal to 2 times the sum of the 
                                adjusted disbursements from the plan 
                                for the 36 months ending on the last 
                                day of the quarter and an enrolled 
                                actuary certifies to the Secretary of 
                                the Treasury that such excess is the 
                                result of nonrecurring circumstances, 
                                the base amount with respect to such 
                                quarter shall be determined without 
                                regard to amounts related to those 
                                nonrecurring circumstances.
                            ``(iii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payments of single sums 
                        and other benefits, and administrative 
                        expenses.
                            ``(iv) Adjusted disbursements.--The term 
                        `adjusted disbursements' means disbursements 
                        from the plan reduced by the product of--
                                    ``(I) the plan's funded current 
                                liability percentage (as defined in 
                                subsection (d)(8)) for the plan year, 
                                and
                                    ``(II) the sum of the purchases of 
                                annuities, payments of single sums, and 
                                such other disbursements as the 
                                Secretary of the Treasury shall provide 
                                in regulations.
                            ``(v) Liquid assets.--The term `liquid 
                        assets' means cash, marketable securities and 
                        such other assets as specified by the Secretary 
                        of the Treasury in regulations.
                            ``(vi) Quarter.--The term `quarter' means, 
                        with respect to any required installment, the 
                        3-month period preceding the month in which the 
                        due date for such installment occurs.
                    ``(F) Regulations.--The Secretary of the Treasury 
                may prescribe such regulations as are necessary to 
                carry out this paragraph.''
                    (B) Limitation on distributions other than life 
                annuities paid by the plan.--
                            (i) Section 206 of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 1056) is 
                        amended by adding at the end the following new 
                        subsection:
    ``(e) Limitation on Distributions Other Than Life Annuities Paid By 
The Plan.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part, the fiduciary of a pension plan that is subject to 
        the additional funding requirements of section 302(d) shall not 
        permit a prohibited payment to be made from a plan during a 
        period in which such plan has a liquidity shortfall (as defined 
        in section 302(e)(5)).
            ``(2) Prohibited payment.--For purposes of paragraph (1), 
        the term `prohibited payment' means--
                    ``(A) any payment, in excess of the monthly amount 
                paid under a single life annuity (plus any social 
                security supplements described in the last sentence of 
                section 204(b)(1)(G)), to a participant or beneficiary 
                whose annuity starting date (as defined in section 
                205(h)(2)), that occurs during the period referred to 
                in paragraph (1),
                    ``(B) any payment for the purchase of an 
                irrevocable commitment from an insurer to pay benefits, 
                and
                    ``(C) any other payment specified by the Secretary 
                of the Treasury by regulations.
            ``(3) Period of shortfall.--For purposes of this 
        subsection, a plan has a liquidity shortfall during the period 
        that there is an underpayment of an installment under section 
        302(e) by reason of paragraph (5)(A) thereof.
            ``(4) Coordination with other provisions.--Compliance with 
        this subsection shall not constitute a violation of any other 
        provision of this Act.''
                            (ii) Section 502 of such Act is amended by 
                        adding at the end thereof a new subsection (m) 
                        to read as follows:
    ``(m) In the case of a distribution to a pension plan participant 
or beneficiary in violation of section 206(e) by a plan fiduciary, the 
Secretary shall assess a penalty against such fiduciary in an amount 
equal to the value of the distribution. Such penalty shall not exceed 
$10,000 for each such distribution.''
            (10) Amendment to definition of full funding limitation.--
                    (A) Subparagraph (A) of section 302(c)(7) of such 
                Act is amended--
                            (i) by inserting ``(including the expected 
                        increase in current liability due to benefits 
                        accruing during the plan year)'' after 
                        ``current liability'' in clause (i), and
                            (ii) by adding at the end the following 
                        flush sentences:
                ``In no event shall the excess described in the 
                preceding sentence for any plan year be less than the 
                excess (if any) of 90 percent of the current liability 
                of the plan (including the expected increase in current 
                liability due to benefits accruing during the plan 
                year) over the value of the plan's assets determined 
                under paragraph (2). For purposes of the preceding 
                sentence, the term `current liability' has the meaning 
                given such term by subsection (d)(7) (determined 
                without regard to subsection (d)(7)(D)), and assets 
                shall not be reduced by any credit balance in the 
                funding standard account.''.
                    (B) Subparagraph (B) of section 302(c)(7) of such 
                Act is amended to read as follows:
            ``(B) Current liability.--For purposes of subparagraph (D) 
        and subclause (I) of subparagraph (A)(i), the term `current 
        liability' has the meaning given such term by subsection (d)(7) 
        (without regard to subparagraphs (C) and (D) thereof) and using 
        the rate of interest used under subsection (b)(5)(B).''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 1994.
            (2) Delay in effective date for disabled lives.--For plan 
        years beginning before January 1, 1996, current liability may 
        be determined using a plan's own mortality assumptions for 
        purposes of calculating the mortality rates of disabled lives.

SEC. 102. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) Paragraph (5) of section 302(c) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1082(c)(5)) is amended--
            (1) by striking ``If the funding method'' and inserting the 
        following:
                    ``(A) In general.--If the funding method'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Approval required for certain changes in 
                assumptions by certain single employer plans subject to 
                additional funding requirement.--
                            ``(i) In general.--No actuarial assumption 
                        (other than the assumptions described in 
                        subsection (d)(7)(C)) used to determine the 
                        current liability for a plan to which this 
                        subparagraph applies may be changed without the 
                        approval of the Secretary of the Treasury.
                            ``(ii) Plans to which subparagraph 
                        applies.--This subparagraph shall apply to a 
                        plan only if--
                                    ``(I) subsection (d) applies to the 
                                plan;
                                    ``(II) the employer (within the 
                                meaning of section 302(c)(11) (without 
                                regard to subparagraph (B) thereof)) 
                                maintaining such plan is described in 
                                section 4043(b)(1); and
                                    ``(III) the change in assumptions 
                                (determined after taking into account 
                                any changes in interest rate and 
                                mortality table) results in a decrease 
                                in the unfunded current liability of 
                                the plan for the current plan year that 
                                is $50,000,000 or greater, or that is 
                                $5,000,000 or greater and that is 5 
                                percent or more of the current 
                                liability of the plan before such 
                                change.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to changes in assumptions for plan years beginning after 
        October 28, 1993.
            (2) Certain changes cease to be effective.--In the case of 
        changes in assumptions for plan years beginning after December 
        31, 1992, and on or before October 28, 1993, such changes shall 
        cease to be effective for plan years beginning after December 
        31, 1994, if--
                    (A) such change would have required the approval of 
                the Secretary of the Treasury had such amendment 
                applied to such change, and
                    (B) such change is not so approved.

SEC. 103. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

    (a) In General.--Section 302(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1082(c)) is amended by adding at the 
end the following new paragraph:
    ``(12) Anticipation of benefit increases effective in the future.--
In determining projected benefits, the funding method of a collectively 
bargained plan described in section 413(a) of the Internal Revenue Code 
of 1986 (other than a multiemployer plan) shall anticipate benefit 
increases scheduled to take effect during the term of the collective 
bargaining agreement applicable to the plan.''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1994 with respect to 
collective bargaining agreements in effect on or after January 1, 1995.

SEC. 104. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) In General.--Paragraph (1) of section 302(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1082(e)) is amended--
            (1) by inserting ``which has a funded current liability 
        percentage (as defined in subsection (d)(8)) for the preceding 
        plan year of less than 100 percent'' before ``fails'', and
            (2) by striking ``any plan year'' and inserting ``the plan 
        year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of enactment of this Act.

      Subtitle B--Amendments to the Internal Revenue Code of 1986

SEC. 121. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Limitation of additional funding requirement to plans 
        having a funded current liability percentage of less than 90 
        percent.--Paragraph (1) of section 412(l) of the Internal 
        Revenue Code of 1986 (relating to additional funding 
        requirements for plans which are not multiemployer plans) is 
        amended by striking ``which has an unfunded current liability'' 
        and inserting ``which has a funded current liability percentage 
        of less than 90 percent (determined without regard to paragraph 
        (8)(E))''.
            (2) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 412(l)(1)(A) of such 
                Code is amended to read as follows:
                            ``(ii)(I) for plan years beginning prior to 
                        January 1, 2000, the sum of the charges under 
                        subsection (b)(2) (other than 5 percent of the 
                        charges established prior to January 1, 1995, 
                        under clauses (iv) and (v) of subsection 
                        (b)(2)(B)), reduced by the sum of the credits 
                        under subsection (b)(3) (other than 5 percent 
                        of the credits established prior to January 1, 
                        1995, under clauses (ii) and (iii) of 
                        subsection (b)(3)(B)), or
                            ``(II) for plan years beginning after 
                        December 31, 1999, the sum of the charges under 
                        subsection (b)(2), reduced by the sum of the 
                        credits under subparagraph (B) of subsection 
                        (b)(3), plus''.
                    (B) The last sentence in section 412(l)(1) of such 
                Code is amended to read as follows:
        ``Such increase shall not exceed the amount which, after taking 
        into account charges (other than the additional charge under 
        this subsection) and credits under subsection (b), is necessary 
        to increase the funded current liability percentage (taking 
        into account the expected increase in current liability due to 
        benefits accruing during the plan year) to 100 percent.''
            (3) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 412(l) of such Code is amended--
                    (A) by striking ``plus'' at the end of subparagraph 
                (A),
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (4) Increase in unfunded old liability.--
                    (A) Paragraph (3) of section 412(l) of such Code is 
                amended by adding at the end the following new 
                subparagraphs:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) In general.--The unfunded old 
                        liability amount with respect to any plan for 
                        any plan year shall be increased by the amount 
                        necessary to amortize the amount of additional 
                        unfunded old liability under the plan in equal 
                        annual installments over a period of 12 plan 
                        years (beginning with the first plan year 
                        beginning after December 31, 1994).
                            ``(ii) Additional unfunded old liability.--
                        For purposes of clause (i), the term 
                        `additional unfunded old liability' means the 
                        amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the assumptions 
                                required by paragraph (7)(C) as in 
                                effect for plan years beginning after 
                                December 31, 1994, exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of such first 
                                plan year, valued using the same 
                                assumptions used under subclause (I) 
                                (other than the assumptions required by 
                                paragraph (7)(C)), using the prior 
                                interest rate, and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) Prior interest rate.--For purposes 
                        of clause (ii), the term `prior interest rate' 
                        means the rate of interest that is the same 
                        percentage of the weighted average under 
                        subsection (b)(5)(B)(ii)(I) for the first plan 
                        year beginning after December 31, 1994, as the 
                        rate of interest used by the plan to determine 
                        current liability for the first plan year 
                        beginning after December 31, 1992, is of the 
                        weighted average under subsection 
                        (b)(5)(B)(ii)(I) for such first plan year 
                        beginning after December 31, 1992.
                    ``(E) Optional rule for additional unfunded old 
                liability.--
                            ``(i) In general.--If an election is made 
                        under clause (ii), the term `additional 
                        unfunded old liability' means (in lieu of the 
                        additional unfunded old liability described in 
                        clause (ii) of subparagraph (D)), the amount 
                        (if any) by which--
                                    ``(I) the unfunded current 
                                liability of the plan as of the 
                                beginning of the first plan year 
                                beginning after December 31, 1994, 
                                valued using the assumptions required 
                                by paragraph (7)(C) as in effect for 
                                plan years beginning after December 31, 
                                1994, exceeds
                                    ``(II) the unamortized portion of 
                                the unfunded old liability under the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994.
                            ``(ii) Election.--
                                    ``(I) An employer may irrevocably 
                                elect, at such time and in such manner 
                                as shall be prescribed by the 
                                Secretary, to apply the provisions of 
                                this subparagraph as of the beginning 
                                of the first plan year beginning after 
                                December 31, 1994.
                                    ``(II) If an election is made under 
                                this clause, the increase under 
                                paragraph (1) for any plan year 
                                beginning after December 31, 1994, and 
                                before January 1, 2002, shall not be 
                                less than the increase that would be 
                                required under paragraph (1) if the 
                                provisions of this title as in effect 
                                for plan years beginning before January 
                                1, 1995, had remained in effect.''
            (5) Applicable percentage for determining unfunded new 
        liability amount.--Subparagraph (C) of section 412(l)(4) of 
        such Code is amended--
                    (A) by striking ``.25'' and inserting ``.40'', and
                    (B) by striking ``35'' and inserting ``60''.
            (6) Unpredictable contingent event amount.--
                    (A) Subparagraph (A) of section 412(l)(5) of such 
                Code is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding after clause (ii) the 
                        following new clause:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 412(l) of such Code is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
                    (C) Clause (ii) of section 412(m)(4)(D) of such 
                Code is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before subclause (I);
                            (ii) by striking ``or'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``, or''; and
                            (iv) by adding after subclause (II) the 
                        following new subclause:
                                    ``(III) 25 percent of the amount 
                                determined under subsection 
                                (l)(5)(A)(iii) for the plan year.''
            (7) Required interest rate and mortality assumptions for 
        determining current liability.--Subparagraph (C) of section 
        412(l)(7) of such Code is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except that the 
                        highest rate in the permissible range under 
                        subparagraph (B)(ii) thereof shall not exceed 
                        105 percent of the weighted average referred to 
                        in such subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the table prescribed by the 
                        Secretary.
                The table prescribed under clause (ii) shall be based 
                on the prevailing commissioners' standard table 
                (described in section 807(d)(5)(A)) used to determine 
                reserves for group annuity contracts issued on the date 
                as of which current liability is determined (without 
                regard to any other subparagraph of section 807(d)(5)). 
                The Secretary shall prescribe separate tables, which 
                may be used instead of the table described in the 
                preceding sentence, to calculate mortality rates for 
                participants who satisfy the definition of disability 
                under titles II and XVI of the Social Security Act and 
                the regulations thereunder.''
            (8) Transition rule.--Section 412(l) of such Code is 
        amended by adding at the end the following new paragraph:
            ``(9) Phase-in of increases in funding required by 
        retirement protection act of 1994.--
                    ``(A) In general.--For any applicable plan year, at 
                the election of the employer, the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would be required 
                        under paragraph (1) if the provisions of this 
                        title as in effect for plan years beginning 
                        before January 1, 1995, had remained in effect, 
                        or
                            ``(ii) the amount which, after taking into 
                        account charges (other than the additional 
                        charge under this subsection) and credits under 
                        subsection (b), is necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        percentage equal to the sum of the initial 
                        funded current liability percentage of the plan 
                        plus the applicable number of percentage points 
                        for such applicable plan year.
                    ``(B) Applicable number of percentage points.--
                            ``(i) Initial funded current liability 
                        percentage of 75 percent or less.--Except as 
                        provided in clause (ii), for plans with an 
                        initial funded current liability percentage of 
                        75 percent or less, the applicable number of 
                        percentage points for the applicable plan year 
                        is as follows:

                ``In the case of applicable
                                               The applicable number of
                  plan years beginning in:
                                                percentage points is:  
                            1995.....................           3      
                            1996.....................           6      
                            1997.....................           9      
                            1998.....................          12      
                            1999.....................          15      
                            2000.....................          19      
                            2001.....................         24.      
                            ``(ii) Other cases.--In the case of a plan 
                        to which this clause applies, the applicable 
                        number of percentage points for any such 
                        applicable plan year is the sum of--
                                    ``(I) 2 percentage points;
                                    ``(II) the applicable number of 
                                percentage points (if any) under this 
                                clause for the preceding applicable 
                                plan year;
                                    ``(III) the product of .10 
                                multiplied by the excess (if any) of 
                                (a) 85 percentage points over (b) the 
                                sum of the initial funded current 
                                liability percentage and the number 
                                determined under subclause (II);
                                    ``(IV) for applicable plan years 
                                beginning in 2000, 1 percentage point; 
                                and
                                    ``(V) for applicable plan years 
                                beginning in 2001, 2 percentage points.
                            ``(iii) Plans to which clause (ii) 
                        applies.--
                                    ``(I) In general.--Clause (ii) 
                                shall apply to a plan for an applicable 
                                plan year if the initial funded current 
                                liability percentage of such plan is 
                                more than 75 percent.
                                    ``(II) Plans initially under clause 
                                (i).--In the case of a plan which (but 
                                for this subclause) has an initial 
                                funded current liability percentage of 
                                75 percent or less, clause (ii) (and 
                                not clause (i)) shall apply to such 
                                plan with respect to applicable plan 
                                years beginning after the first 
                                applicable plan year for which the sum 
                                of the initial funded current liability 
                                percentage and the applicable number of 
                                percentage points (determined under 
                                clause (i)) exceeds 75 percent. For 
                                purposes of applying clause (ii) to 
                                such a plan, the initial funded current 
                                liability percentage of such plan shall 
                                be treated as being the sum referred to 
                                in the preceding sentence.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) The term `applicable plan year' means 
                        a plan year beginning after December 31, 1994, 
                        and before January 1, 2002.
                            ``(ii) The term `initial funded current 
                        liability percentage' means the funded current 
                        liability percentage as of the first day of the 
                        first plan year beginning after December 31, 
                        1994.''
            (9) Liquidity requirement.--
                    (A) Section 412(m) of such Code is amended by 
                redesignating paragraph (5) as paragraph (6) and by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Liquidity requirement.--
                    ``(A) In general.--A plan to which this paragraph 
                applies shall be treated as failing to pay the full 
                amount of any required installment to the extent that 
                the value of the liquid assets paid in such installment 
                is less than the liquidity shortfall (whether or not 
                such liquidity shortfall exceeds the amount of such 
                installment required to be paid but for this 
                paragraph).
                    ``(B) Plans to which paragraph applies.--This 
                paragraph shall apply to a defined benefit plan to 
                which subsection (l) applies and which--
                            ``(i) is required to pay installments under 
                        this subsection for a plan year, and
                            ``(ii) has a liquidity shortfall for any 
                        quarter during such plan year.
                    ``(C) Period of underpayment.--For purposes of 
                paragraph (1), any portion of an installment that is 
                treated as not paid under subparagraph (A) shall 
                continue to be treated as unpaid until the close of the 
                quarter in which the due date for such installment 
                occurs.
                    ``(D) Limitation on increase.--If the amount of any 
                required installment is increased by reason of 
                subparagraph (A), in no event shall such increase 
                exceed the amount which, when added to prior 
                installments for the plan year, is necessary to 
                increase the funded current liability percentage 
                (taking into account the expected increase in current 
                liability due to benefits accruing during the plan 
                year) to 100 percent.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Liquidity shortfall.--The term 
                        `liquidity shortfall' means, with respect to 
                        any required installment, an amount equal to 
                        the excess (as of the last day of the quarter 
                        for which such installment is made) of the base 
                        amount with respect to such quarter over the 
                        value (as of such last day) of the plan's 
                        liquid assets.
                            ``(ii) Base amount.--
                                    ``(I) In general.--The term `base 
                                amount' means, with respect to any 
                                quarter, an amount equal to 3 times the 
                                sum of the adjusted disbursements from 
                                the plan for the 12 months ending on 
                                the last day of such quarter.
                                    ``(II) Special rule.--If the amount 
                                determined under clause (i) exceeds an 
                                amount equal to 2 times the sum of the 
                                adjusted disbursements from the plan 
                                for the 36 months ending on the last 
                                day of the quarter and an enrolled 
                                actuary certifies to the Secretary that 
                                such excess is the result of 
                                nonrecurring circumstances, the base 
                                amount with respect to such quarter 
                                shall be determined without regard to 
                                amounts related to those nonrecurring 
                                circumstances.
                            ``(iii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payments of single sums 
                        and other benefits, and administrative 
                        expenses.
                            ``(iv) Adjusted disbursements.--The term 
                        `adjusted disbursements' means disbursements 
                        from the plan reduced by the product of--
                                    ``(I) the plan's funded current 
                                liability percentage (as defined in 
                                subsection (l)(8)) for the plan year, 
                                and
                                    ``(II) the sum of the purchases of 
                                annuities, payments of single sums, and 
                                such other disbursements as the 
                                Secretary shall provide in regulations.
                            ``(v) Liquid assets.--The term `liquid 
                        assets' means cash, marketable securities and 
                        such other assets as specified by the Secretary 
                        in regulations.
                            ``(vi) Quarter.--The term `quarter' means, 
                        with respect to any required installment, the 
                        3-month period preceding the month in which the 
                        due date for such installment occurs.
                    ``(F) Regulations.--The Secretary may prescribe 
                such regulations as are necessary to carry out this 
                paragraph.''
                    (B) Excise tax on unpaid liquidity shortfall.--
                            (i) Subsection (e) of section 4971 of such 
                        Code is amended by striking ``(a) or (b)'' 
                        wherever it appears and replacing it with 
                        ``(a), (b) or (f)''.
                            (ii) Section 4971 of such Code is amended 
                        by redesignating subsection (f) as subsection 
                        (g) and adding a new subsection (f) to read as 
                        follows:
    ``(f) Failure To Pay Liquidity Shortfall.--
            ``(1) In general.--In the case of a plan to which section 
        412(m)(5) applies, there is hereby imposed a tax of 10 percent 
        of the excess (if any) of--
                    ``(A) the amount of the liquidity shortfall for any 
                quarter, over
                    ``(B) the amount of such shortfall which is paid by 
                the required installment under section 412(m) for such 
                quarter (but only if such installment is paid on or 
                before the due date for such installment).
            ``(2) Additional tax.--If the plan has a liquidity 
        shortfall as of the close of any quarter and as of the close of 
        each of the following 4 quarters, there is hereby imposed a tax 
        equal to 100 percent of the amount on which tax was imposed by 
        paragraph (1) for such first quarter.
            ``(3) Definitions and special rule.--
                    ``(A) Liquidity shortfall; quarter.--For purposes 
                of this subsection, the terms `liquidity shortfall' and 
                `quarter' have the respective meanings given such terms 
                by section 412(m)(5).
                    ``(B) Special rule.--If the tax imposed by 
                paragraph (2) is paid with respect to any liquidity 
                shortfall for any quarter, no further tax shall be 
                imposed by this subsection on such shortfall for such 
                quarter.''
                    (C) Treatment of failure to make certain payments 
                if plan has liquidity shortfall.--Section 401(a) of 
                such Code is amended by adding at the end the following 
                new paragraph:
            ``(32) Treatment of failure to make certain payments if 
        plan has liquidity shortfall.--
                    ``(A) In general.--A trust forming part of a 
                pension plan to which section 412(m)(5) applies shall 
                not be treated as failing to constitute a qualified 
                trust under this section merely because such plan 
                ceases to make any payment described in subparagraph 
                (B) during any period that such plan has a liquidity 
                shortfall (as defined in section 412(m)(5)).
                    ``(B) Payments described.--A payment is described 
                in this subparagraph if such payment is--
                            ``(i) any payment, in excess of the monthly 
                        amount paid under a single life annuity (plus 
                        any social security supplements described in 
                        the last sentence of section 411(a)(9)), to a 
                        participant or beneficiary whose annuity 
                        starting date (as defined in section 417(f)(2)) 
                        occurs during the period referred to in 
                        subparagraph (A),
                            ``(ii) any payment for the purchase of an 
                        irrevocable commitment from an insurer to pay 
                        benefits, and
                            ``(iii) any other payment specified by the 
                        Secretary by regulations.
                    ``(C) Period of shortfall.--For purposes of this 
                paragraph, a plan has a liquidity shortfall during the 
                period that there is an underpayment of an installment 
                under section 412(m) by reason of paragraph (5)(A) 
                thereof.''
            (10) Amendment to definition of full funding limitation.--
                    (A) Subparagraph (A) of section 412(c)(7) of such 
                Code is amended--
                            (i) by inserting ``(including the expected 
                        increase in current liability due to benefits 
                        accruing during the plan year)'' after 
                        ``current liability'' in clause (i), and
                            (ii) by adding at the end the following 
                        flush sentences:
                ``In no event shall the excess described in the 
                preceding sentence for any plan year be less than the 
                excess (if any) of 90 percent of the current liability 
                of the plan (including the expected increase in current 
                liability due to benefits accruing during the plan 
                year) over the value of the plan's assets determined 
                under paragraph (2). For purposes of the preceding 
                sentence, the term `current liability' has the meaning 
                given such term by subsection (l)(7) (determined 
                without regard to subsection (l)(7)(D)), and assets 
                shall not be reduced by any credit balance in the 
                funding standard account.''.
                    (B) Subparagraph (B) of section 412(c)(7) of such 
                Code is amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (l)(7) (without regard to 
                subparagraphs (C) and (D) thereof) and using the rate 
                of interest used under subsection (b)(5)(B).''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 1994.
            (2) Delay in effective date for disabled lives.--For plan 
        years beginning before January 1, 1996, current liability may 
        be determined using a plan's own mortality assumptions for 
        purposes of calculating the mortality rates of disabled lives.

SEC. 122. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) In General.--Paragraph (5) of section 412(c) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``If the funding method'' and inserting the 
        following:
            ``(A) In general.--If the funding method'', and
            (2) by adding at the end the following new subparagraph:
            ``(B) Approval required for certain changes in assumptions 
        by certain single employer plans subject to additional funding 
        requirement.--
                    ``(i) In general.--No actuarial assumption (other 
                than the assumptions described in subsection (l)(7)(C)) 
                used to determine the current liability for a plan to 
                which this subparagraph applies may be changed without 
                the approval of the Secretary.
                    ``(ii) Plans to which subparagraph applies.--This 
                subparagraph shall apply to a plan only if--
                            ``(I) subsection (l) applies to the plan;
                            ``(II) the employer (within the meaning of 
                        section 412(c)(11) (without regard to 
                        subparagraph (B) thereof)) maintaining such 
                        plan is described in section 4043(b)(1) of the 
                        Employee Retirement Income Security Act of 
                        1974; and
                            ``(III) the change in assumptions 
                        (determined after taking into account any 
                        changes in interest rate and mortality table) 
                        results in a decrease in the unfunded current 
                        liability of the plan for the current plan year 
                        that is $50,000,000 or greater, or that is 
                        $5,000,000 or greater and that is 5 percent or 
                        more of the current liability of the plan 
                        before such change.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to changes in assumptions for plan years beginning after 
        October 28, 1993.
            (2) Certain changes cease to be effective.--In the case of 
        changes in assumptions for plan years beginning after December 
        31, 1992, and on or before October 28, 1993, such changes shall 
        cease to be effective for plan years beginning after December 
        31, 1994, if--
                    (A) such change would have required the approval of 
                the Secretary of the Treasury had such amendment 
                applied to such change, and
                    (B) such change is not so approved.

SEC. 123. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

    (a) In General.--Section 412(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(12) Anticipation of benefit increases effective in the 
        future.--In determining projected benefits, the funding method 
        of a collectively bargained plan described in section 413(a) 
        (other than a multiemployer plan) shall anticipate benefit 
        increases scheduled to take effect during the term of the 
        collective bargaining agreement applicable to the plan.''
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 1994, with respect to 
collective bargaining agreements in effect on or after January 1, 1995.

SEC. 124. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) In General.--Paragraph (1) of section 412(m) of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``which has a funded current liability 
        percentage (as defined in subsection (l)(8)) for the preceding 
        plan year of less than 100 percent'' before ``fails'', and
            (2) by striking ``any plan year'' and inserting ``the plan 
        year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after the date of enactment of this Act.

SEC. 125. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE CONTRIBUTIONS.

    (a) In General.--Section 4972(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Exceptions.--In determining the amount of 
        nondeductible contributions for any taxable year, there shall 
        not be taken into account--
                    ``(A) contributions that would be deductible under 
                section 404(a)(1)(D) if the plan had more than 100 
                participants if--
                            ``(i) the plan is covered under section 
                        4021 of the Employee Retirement Income Security 
                        Act of 1974, and
                            ``(ii) the plan is terminated under section 
                        4041(b) of such Act on or before the last day 
                        of the taxable year, and
                    ``(B) contributions to a defined contribution plan 
                which--
                            ``(i) do not exceed 6 percent of 
                        compensation (within the meaning of section 
                        404(a)(7)(A)(i)) paid or accrued (during the 
                        taxable year for which the contributions were 
                        made) to beneficiaries under the plan, and
                            ``(ii) are not deductible when contributed 
                        solely because of section 404(a)(7).
        If one or more defined benefit plans were taken into account in 
        determining the amount allowable as a deduction under section 
        404 for contributions to any defined contribution plan, 
        subparagraph (B) shall apply only if all such defined benefit 
        plans are described in section 404(a)(1)(D). For purposes of 
        subparagraph (B), the deductible limits under section 404(a)(7) 
        shall first be applied to amounts contributed to a defined 
        benefit plan and then to amounts described in subparagraph 
        (B).''
    (b) Effective Date.--
            (1) Section 4972(c)(6)(a).--Section 4972(c)(6)(A) of the 
        Internal Revenue Code of 1986 (as added by this section) shall 
        apply to taxable years ending on or after the date of enactment 
        of this Act.
            (2) Section 4972(c)(6)(b).--Section 4972(c)(6)(B) of such 
        Code (as added by this section) shall apply to taxable years 
        ending on or after December 31, 1992.

  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

SEC. 201. REPORTABLE EVENTS.

    (a) Responsibility for Reportable Events Reporting.--Section 
4043(a) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1343(a)) is amended--
            (1) in the first sentence, by inserting ``or the 
        contributing sponsor'' before ``knows or has reason to know'';
            (2) in the first sentence, by inserting ``, unless a notice 
        otherwise required under this subsection has already been 
        provided with respect to such event'' before the period at the 
        end; and
            (3) by striking the last sentence.
    (b) Notification That Event Is About To Occur.--Section 4043 of 
such Act is amended by redesignating subsections (b), (c), and (d) as 
(c), (d), and (e), respectively, and by inserting after subsection (a) 
the following new subsection:
    ``(b)(1) The requirements of this subsection shall be applicable to 
a contributing sponsor only if the aggregate unfunded vested benefits 
at the end of the preceding plan year (as determined under section 
4006(a)(3)(E)(iii)) of plans which are maintained by such sponsor and 
the members of such sponsor's controlled group and are covered by this 
title exceed $50,000,000 (taking into account only those plans with 
unfunded vested benefits).
    ``(2) No later than 30 days prior to the effective date of an event 
described in paragraph (9), (10), (11), (12), or (13) of subsection 
(c), a contributing sponsor to which the requirements of this 
subsection apply shall notify the corporation that the event is about 
to occur.
    ``(3) The corporation may waive the requirement of this subsection 
with respect to any or all reportable events with respect to any 
contributing sponsor.''
    (c) New Reportable Events.--Subsection (c) of section 4043 of such 
Act (as redesignated by subsection (b)) is amended--
            (1) by striking the ``or'' at the end of paragraph (8);
            (2) by striking paragraph (9); and
            (3) by inserting after paragraph (8) the following new 
        paragraphs:
            ``(9) when, as a result of an event, a person ceases to be 
        a member of the controlled group;
            ``(10) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group liquidates in a case 
        under title 11, United States Code, or under any similar 
        Federal law or law of a State or political subdivision of a 
        State;
            ``(11) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group declares an 
        extraordinary dividend (as defined in section 1059(c) of the 
        Internal Revenue Code of 1986) or redeems, in any 12-month 
        period, an aggregate of 10 percent or more of the total 
        combined voting power of all classes of stock entitled to vote, 
        or an aggregate of 10 percent of more of the total value of 
        shares of all classes of stock, of a contributing sponsor and 
        all members of its controlled group;
            ``(12) when, in any 12-month period, an aggregate of 3 
        percent or more of the benefit liabilities of a plan covered by 
        this title and maintained by a contributing sponsor or a member 
        of its controlled group are transferred to a person that is not 
        a member of the controlled group or to a plan or plans 
        maintained by a person or persons that are not such a 
        contributing sponsor or a member of its controlled group; or
            ``(13) when any other event occurs that may be indicative 
        of a need to terminate the plan and that is prescribed by the 
        corporation in regulations.''
    (d) Disclosure Exemption.--Section 4043 of such Act is amended by 
adding at the end the following new subsection:
    ``(f) Any information or documentary material submitted to the 
corporation pursuant to this section or section 4050(c) shall be exempt 
from disclosure under section 552 of title 5, United States Code, and 
no such information or documentary material may be made public, except 
as may be relevant to any administrative or judicial action or 
proceeding. Nothing in this section is intended to prevent disclosure 
to either body of Congress or to any duly authorized committee or 
subcommittee of the Congress.''
    (e) Technical and Conforming Amendments.--
            (1) Subsection (a) of section 4043 of such Act, and 
        subsections (d) and (e) of such section 4043 (as redesignated 
        by subsection (b)) are amended by striking ``subsection (b)'' 
        each place it appears and inserting ``subsection (c)''.
            (2) Section 4042(a)(3) of such Act is amended by striking 
        ``4043(b)(7)'' and inserting ``4043(c)(7)''.
    (f) Effective Date.--The amendments made by this section shall be 
effective for events occurring 60 days or more after the date of 
enactment of this Act.

SEC. 202. ALTERNATIVE TO INVOLUNTARY TERMINATION.

    (a) In General.--Subtitle C of title IV of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by 
adding at the end the following new section:

          ``judicial relief other than involuntary termination

    ``Sec. 4050. (a) Institution of Proceedings.--
            ``(1) In general.--Whenever the corporation determines 
        (without regard to the potential availability of relief under 
        this section) that, upon the occurrence of an event described 
        in paragraph (9), (10), (11), (12), or (13) of section 4043(c), 
        the possible long-run loss of the corporation with respect to a 
        plan may reasonably be expected to increase unreasonably if the 
        plan is not terminated, the corporation may, in its discretion, 
        institute proceedings under this section as an alternative to 
        instituting proceedings under section 4042 to terminate the 
        plan.
            ``(2) Limitation.--In the case of an event described in 
        paragraph (9) or (13) of section 4043(c), this section shall 
        apply only if, immediately after the effective date of the 
        event, the total revenues, the total operating income, or the 
        total assets of a contributing sponsor and all members of its 
        controlled group would be less than 90 percent of the total 
        revenues, the total operating income, or the total assets, 
        respectively, of a contributing sponsor and all members of its 
        controlled group immediately before the effective date of the 
        event. For purposes of this paragraph, all events occurring in 
        any 12-month period shall be treated as a single event.
    ``(b) Whenever the corporation makes a determination under 
subsection (a), it may, upon notice to a contributing sponsor, apply to 
the appropriate United States district court for such legal or 
equitable relief as the corporation deems appropriate and consistent 
with its duties under this title. The court shall grant such relief as 
it determines necessary to protect the interests of the participants or 
to avoid any unreasonable deterioration of the financial condition of 
the plan or any unreasonable increase in the liability of the fund, 
without interfering unreasonably with the business of the contributing 
sponsor or members of its controlled group.
    ``(c)(1) In any case in which the corporation is provided with a 
notice required by subsection 4043(b) within the time specified in that 
subsection, the corporation may bring an action under this section no 
later than 30 days after the date such notice is received. 
Notwithstanding the preceding sentence, the corporation may, no later 
than 30 days after the date such notice is received, require the 
submission of additional information or documentary material, in which 
case an action under this section may be brought no later than 20 days 
after the corporation receives all the information and documentary 
material it had required.
    ``(2) After a notice described in paragraph (1) is provided to the 
corporation, a person may elect, upon further notice to the 
corporation, to proceed with an event prior to the expiration of the 
time periods described in paragraph (1). In the case of such an 
election, an action under this section may be brought at any time 
within the period specified in subsection 4003(e)(6).
    ``(3) In any case in which the corporation is not provided with a 
notice required by subsection (b) of section 4043 by the time specified 
in that subsection, in any case in which a person fails or refuses to 
provide the additional information or documentary material required by 
the corporation under paragraph (1), or in any case in which a person 
proceeds with an event without providing the corporation with the 
further notice required under paragraph (2) with respect to such event, 
an action under this section may be brought at any time within the time 
period specified in subsection 4003(e)(6).
    ``(4) Except as provided in paragraph (1), (2), or (3), an action 
under this section may not be brought after the effective date of the 
event giving rise to the transaction.
    ``(5) For purposes of applying subsection 4003(e)(6) to paragraphs 
(2) and (3), a cause of action shall be deemed to arise on the 
effective date of the event.
    ``(d) Nothing in this section shall limit the authority of the 
corporation to initiate proceedings to terminate a plan under section 
4042, or to initiate proceedings or to seek relief under any other 
provision of this title or any other law.''
    (b) Conforming Amendment.--Section 4042(a) of such Act (29 U.S.C. 
1342(a)) is amended by inserting, after ``determines'' the first place 
it appears, the following: ``(without regard to the potential 
availability of relief under section 4050)''.
    (c) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4048 the following new item:

``Sec. 4050. Judicial relief other than involuntary termination.''
    (d) Effective Date.--The amendments made by this section shall be 
effective for events occurring 60 days or more after the date of the 
enactment of this Act.

SEC. 203. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO PBGC.

    (a) General Rule.--Subtitle A of title IV of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) is 
amended by adding at the end the following new section:

``SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMATION.

    ``(a) Information Required.--Each person described in subsection 
(b) shall provide the corporation annually, on or before a date 
specified by the corporation in regulations, with--
            ``(1) such records, documents, or other information that 
        the corporation specifies in regulations as necessary to 
        determine the liabilities and assets of plans covered by this 
        title; and
            ``(2) copies of such person's audited (or, if unavailable, 
        unaudited) financial statements, and such other financial 
        information as the corporation may prescribe in regulations.
    ``(b) Persons Required To Provide Information.--The persons covered 
by subsection (a) are each contributing sponsor, and each member of a 
contributing sponsor's controlled group, of a single-employer plan 
covered by this title, if--
            ``(1) the aggregate unfunded vested benefits at the end of 
        the preceding plan year (as determined under section 
        4006(a)(3)(E)(iii)) of plans which are maintained by the 
        contributing sponsor and the members of its controlled group 
        and are covered by this title exceed $50,000,000 (taking into 
        account only those plans of the contributing sponsor and its 
        controlled group with unfunded vested benefits); or
            ``(2) the conditions for imposition of a lien described in 
        section 302(f)(1)(A) and (B) of this Act or section 
        412(n)(1)(A) and (B) of the Internal Revenue Code of 1986 have 
        been met with respect to any plan maintained by the 
        contributing sponsor or any member of its controlled group; or
            ``(3) minimum funding waivers in excess of $1,000,000 have 
        been granted with respect to any plan maintained by the 
        contributing sponsor or any member of its controlled group, and 
        any portion thereof is still outstanding.
    ``(c) Information Exempt From Disclosure Requirements.--Any 
information or documentary material submitted to the corporation 
pursuant to this section shall be exempt from disclosure under section 
552 of title 5, United States Code, and no such information or 
documentary material may be made public, except as may be relevant to 
any administrative or judicial action or proceeding. Nothing in this 
section is intended to prevent disclosure to either body of Congress or 
to any duly authorized committee or subcommittee of the Congress.''
    (b) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4009 the following new item:

``Sec. 4010. Authority to require certain information.''
    (c) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act.

SEC. 204. LIABILITY UPON LIQUIDATION OF CONTRIBUTING SPONSOR OR 
              CONTROLLED GROUP MEMBER IF PLAN REMAINS ONGOING.

    (a) In General.--Section 4062 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1362) is amended by adding at the end 
the following new subsection:
    ``(f) Liability on Liquidation of Contributing Sponsor or 
Controlled Group Member.--
            ``(1) In general.--In any case in which--
                    ``(A) all or substantially all of the assets of a 
                person who is a contributing sponsor of a single-
                employer plan, or a member of a controlled group of a 
                contributing sponsor of a single-employer plan, are 
                liquidated--
                            ``(i) in a case under chapter 7 of title 
                        11, United States Code,
                            ``(ii) in a case under chapter 11 of such 
                        title 11 in which--
                                    ``(I) the plan confirmed under such 
                                chapter 11 provides for the liquidation 
                                of all or substantially all of the 
                                property of the estate, and
                                    ``(II) the debtor does not engage 
                                in business after the confirmation of 
                                such plan, or
                            ``(iii) under any similar Federal law or 
                        law of a State or political subdivision of a 
                        State, and
                    ``(B) the single-employer plan is not terminated,
        such person shall be deemed liable under subsection (b) as if 
        the single-employer plan had terminated under section 4041(c) 
        in the course of such liquidation and as if the termination 
        date were the date determined by the corporation as the date on 
        which the liquidation was initiated.
            ``(2) Limited joint and several liability.--The liability 
        under this subsection shall be joint and several only among the 
        members of the controlled group (including, where applicable, 
        the contributing sponsor) who are liquidating as described in 
        paragraph (1).
            ``(3) Applicability of other provisions.--Except as 
        provided in paragraph (2), any provision of this Act or any 
        other provision of law that applies to liability under the 
        preceding subsections of this section upon termination of a 
        plan shall apply in the same manner and to the same extent to 
        the liability established under this subsection. For purposes 
        of this paragraph, the date referred to in paragraph (1) shall 
        be deemed the termination date.
            ``(4) Liability owed to plan; transfer of liability 
        payments to the ongoing plan where collected by the 
        corporation.--The liability established under this subsection 
        shall be owed to the plan, and may be collected by either the 
        plan or the corporation. The corporation shall pay to the plan 
        any amounts collected by the corporation in satisfaction of the 
        liability established under this subsection in connection with 
        such plan.
            ``(5) Regulations.--The corporation may prescribe 
        regulations under this subsection, including--
                    ``(A) rules governing--
                            ``(i) the determination of whether and when 
                        a liquidation referred to in this subsection 
                        has occurred, and
                            ``(ii) the assignment of the plan's or 
                        corporation's claim to liability payments under 
                        this subsection to other members of the 
                        controlled group as a means of collecting such 
                        payments, subject to the transfer of such 
                        payments to the plan, and
                    ``(B) rules providing alternative arrangements for 
                making liability payments under this subsection.''
    (b) Conforming Amendment.--Section 4062(a) of such Act is amended--
            (1) in paragraph (1), by striking ``and'' after 
        ``subsection (b),'';
            (2) in paragraph (2), by striking the period after 
        ``subsection (c)'' and inserting '', and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) liability to the plan, to the extent provided in 
        subsection (f).''
    (c) Coordination With Minimum Funding Rules.--
            (1) ERISA.--Section 302(c) of the Employee Retirement 
        Income Security Act of 1974 is amended by adding at the end the 
        following new paragraph:
    ``(13) Treatment of liability on liquidation of employer.--Any 
amount paid to a plan pursuant to section 4062(f)--
            ``(A) shall be treated as not contributed by the employer 
        for purposes of subsection (b)(3)(A), and
            ``(B) shall be treated as a net experience gain of the plan 
        under subsection (b)(3)(B)(ii).''
            (2) 1986 code.--Section 412(c) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(13) Treatment of liability on liquidation of employer.--
        Any amount paid to a plan pursuant to section 4062(f) of the 
        Employee Retirement Income Security Act of 1974--
                    ``(A) shall be treated as not contributed by the 
                employer for purposes of subsection (b)(3)(A), and
                    ``(B) shall be treated as a net experience gain of 
                the plan under subsection (b)(3)(B)(ii).''
    (d) Effective Date.--The amendments made by this section shall be 
effective for liquidations initiated on or after the date of enactment 
of this Act.

SEC. 205. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.

    (a) In General.--Paragraph (1) of section 4003(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is 
amended--
            (1) by inserting ``(A)'' after ``enforce''; and
            (2) by striking the period after ``title'' and inserting 
        ``, and (B) in the case of a plan which is covered under this 
        title (other than a multiemployer plan) and for which the 
        conditions for imposition of a lien described in section 
        302(f)(1)(A) and (B) of this Act or section 412(n)(1)(A) and 
        (B) of the Internal Revenue Code of 1986 have been met, section 
        302 of this Act and section 412 of such Code.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under section 
302 of the Employee Retirement Income Security Act of 1974 or section 
412 of the Internal Revenue Code of 1986 that become due on or after 
the date of the enactment of this Act.

SEC. 206. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS FOR STANDARD 
              TERMINATION.

    (a) Notice of Noncompliance.--Section 4041(b)(2)(C)(i) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1341(b)(2)(C)(i)) is amended--
            (1) by striking subclause (I) and inserting the following 
        new subclause:
                                    ``(I) it determines, based on the 
                                notice sent under paragraph (2)(A) of 
                                subsection (b), that there is reason to 
                                believe that the plan is not sufficient 
                                for benefit liabilities,'';
            (2) by striking the period at the end of subclause (II) and 
        inserting ``, or''; and
            (3) by adding at the end the following new subclause:
                                    ``(III) it determines that any 
                                other requirement of subparagraph (A) 
                                or (B) of this paragraph or of 
                                subsection (a)(2) has not been met, 
                                unless it further determines that the 
                                issuance of such notice would be 
                                inconsistent with the interests of 
                                participants and beneficiaries.''
    (b) Effective Date.--The amendments made by this section shall 
apply to any plan termination under section 4041(b) of the Employee 
Retirement Income Security Act of 1974 with respect to which the 
Pension Benefit Guaranty Corporation has not, as of the date of 
enactment of this Act, issued a notice of noncompliance that has become 
final, or otherwise issued a final determination that the plan 
termination is nullified.

SEC. 207. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS IN 
              BANKRUPTCY.

    (a) Amendment to the Employee Retirement Income Security Act of 
1974.--Section 204 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1054) is amended by redesignating subsections (i) and 
(j) as subsections (j) and (k), respectively, and by inserting after 
subsection (h) the following new subsection:
    ``(i)(1) In the case of a plan described in paragraph (3) which is 
maintained by an employer that is a debtor in a case under title 11, 
United States Code, or similar Federal or State law, no amendment of 
the plan which increases the liabilities of the plan by reason of--
            ``(A) any increase in benefits,
            ``(B) any change in the accrual of benefits, or
            ``(C) any change in the rate at which benefits become 
        nonforfeitable under the plan,
with respect to employees of the debtor, shall be effective prior to 
the effective date of such employer's plan of reorganization.
    ``(2) Paragraph (1) shall not apply to any plan amendment that--
            ``(A) the Secretary of the Treasury determines to be 
        reasonable and that provides for only de minimis increases in 
        the liabilities of the plan with respect to employees of the 
        debtor,
            ``(B) only repeals an amendment described in section 
        302(c)(8),
            ``(C) is required as a condition of qualification under 
        part I of subchapter D, of chapter 1, of the Internal Revenue 
        Code of 1986, or
            ``(D) was adopted prior to, or pursuant to a collective 
        bargaining agreement entered into prior to, the date on which 
        the employer became a debtor in a case under title 11, United 
        States Code, or similar Federal or State law.
    ``(3) This subsection shall apply only to plans (other than 
multiemployer plans) covered under section 4021 of this Act for which 
the funded current liability percentage (within the meaning of section 
302(d)(8) of this Act) is less than 100 percent after taking into 
account the effect of the amendment.
    ``(4) For purposes of this subsection, `employer' has the meaning 
set forth in section 302(c)(11)(A), without regard to section 
302(c)(11)(B).''
    (b) Amendment to Internal Revenue Code of 1986.--Section 401(a) of 
the Internal Revenue Code of 1986, as amended by section 121 of this 
Act, is further amended by adding at the end the following new 
paragraph:
            ``(33) Prohibition on benefit increases while sponsor is in 
        bankruptcy.--
                    ``(A) In general.--A trust which is part of a plan 
                to which this paragraph applies shall not constitute a 
                qualified trust under this section if an amendment to 
                such plan is adopted while the employer is a debtor in 
                a case under title 11, United States Code, or similar 
                Federal or State law, if such amendment increases 
                liabilities of the plan by reason of--
                            ``(i) any increase in benefits,
                            ``(ii) any change in the accrual of 
                        benefits, or
                            ``(iii) any change in the rate at which 
                        benefits become nonforfeitable under the plan,
                with respect to employees of the debtor, and such 
                amendment is effective prior to the effective date of 
                such employer's plan of reorganization.
                    ``(B) Exceptions.--This paragraph shall not apply 
                to any plan amendment if--
                            ``(i) the plan, were such amendment to take 
                        effect, would have a funded current liability 
                        percentage (as defined in section 412(l)(8)) of 
                        100 percent or more,
                            ``(ii) the Secretary determines that such 
                        amendment is reasonable and provides for only 
                        de minimis increases in the liabilities of the 
                        plan with respect to employees of the debtor,
                            ``(iii) such amendment only repeals an 
                        amendment described in subsection 412(c)(8), or
                            ``(iv) such amendment is required as a 
                        condition of qualification under this part.
                    ``(C) Plans to which this paragraph applies.--This 
                paragraph shall apply only to plans (other than 
                multiemployer plans) covered under section 4021 of the 
                Employee Retirement Income Security Act of 1974.
                    ``(D) Employer.--For purposes of this paragraph, 
                the term `employer' means the employer referred to in 
                section 412(c)(11) (without regard to subparagraph (B) 
                thereof).''
    (c) Effective Date of Plan Amendment.--Section 4022 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by 
inserting at the end the following new subsection:
    ``(f) For purposes of this section, the effective date of a plan 
amendment described in section 204(i)(1) shall be the effective date of 
the plan of reorganization of the employer described in section 
204(i)(1) or, if later, the effective date stated in such amendment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan amendments adopted on or after the date of enactment of 
this Act.

SEC. 208. SUBSTANTIAL OWNER BENEFITS.

    (a) Modification of Phase-In of Guarantee.--Section 4022(b)(5) of 
the Employee Retirement Income Security Act of 1974 is amended by 
striking subparagraphs (B) and (C) and inserting the following new 
subparagraphs:
    ``(B) For purposes of this title, the term `majority owner' has the 
same meaning as the term `substantial owner', if `50 percent or more' 
is substituted for `more than 10 percent' wherever such phrase appears 
in subparagraph (A) of this paragraph.
    ``(C) In the case of a participant who is a majority owner, the 
amount of benefits guaranteed under this section shall not exceed the 
lesser of--
            ``(i) the amount otherwise determined under this 
        subsection, or
            ``(ii) the product of--
                    ``(I) a fraction (not to exceed 1) the numerator of 
                which is the number of years from the later of the 
                effective date or the adoption date of the plan, and 
                the denominator of which is 30, and
                    ``(II) the amount of the majority owner's monthly 
                benefits guaranteed under subsection (a) (as limited by 
                paragraph (3) of this subsection).''
    (b) Modification of Allocation of Assets.--
            (1) Section 4044(a)(4)(B) of such Act (29 U.S.C. 
        1344(a)(4)(B)) is amended by inserting ``(C)'' after ``section 
        4022(b)(5)''.
            (2) Section 4044(b) of such Act is amended--
                    (A) in paragraph (2), by inserting ``(4),'' before 
                ``(5)'', and by inserting a comma after ``(5)'';
                    (B) by redesignating paragraphs (3) through (6) as 
                paragraphs (4) through (7), respectively; and
                    (C) by inserting a new paragraph (3) to read as 
                follows:
            ``(3) If assets available for allocation under paragraph 
        (4) of subsection (a) are insufficient to satisfy in full the 
        benefits of all individuals who are described in that 
        paragraph, the assets shall be allocated first to benefits 
        described in subparagraph (A) of that paragraph. Any remaining 
        assets shall then be allocated to subparagraph (B). If assets 
        allocated to subparagraph (B) are insufficient to satisfy in 
        full the benefits in that subparagraph, the assets shall be 
        allocated pro rata among individuals on the basis of the 
        present value (as of the termination date) of their respective 
        benefits described in that subparagraph.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for plan terminations under section 4041(c) of the Employee 
Retirement Income Security Act of 1974 with respect to which notices of 
intent to terminate are provided under section 4041(a)(2) of such Act, 
or under section 4042 of such Act with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

SEC. 209. PHASE-OUT OF VARIABLE RATE PREMIUM CAP.

    (a) In General.--Subparagraph (E) of section 4006(a)(3) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)) is amended by striking clause (iv), and by redesignating 
clause (v) as clause (iv).
    (b) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act, except that, for plan 
years beginning on or after July 1, 1994 and before July 1, 1996, the 
additional premium payable with respect to any participant by reason of 
this amendment shall not exceed the sum of--
            (1) $53, and
            (2) the product derived by multiplying--
                    (A) the excess (if any) of--
                            (i) the amount determined under clause (i) 
                        of section 4006(a)(3)(E) of the Employee 
                        Retirement Income Security Act of 1974, over
                            (ii) $53, by
                    (B) the applicable percentage.
        For purposes of this subsection, the applicable percentage 
        shall be the percentage specified in the following table:



                                                                        
              For the plan year beginning:                              
                                                          The applicable
        on or after                  but before           percentage is:
                                                                        
July 1, 1994...............  July 1, 1995..............     20 percent  
July 1, 1995...............  July 1, 1996..............     60 percent  
                                                                        

                    TITLE III--PARTICIPANT SERVICES

SEC. 301. DISCLOSURE TO PARTICIPANTS.

    (a) Participant Notice Requirement.--Subtitle A of title IV of the 
Employee Retirement Income Security Act of 1974 (as amended by section 
203 of this Act) is further amended by adding at the end the following 
new section:

``SEC. 4011. NOTICE TO PARTICIPANTS.

    ``(a) In General.--The plan administrator of a plan subject to the 
additional premium under section 4006(a)(3)(E) shall provide, in a form 
and manner and at such time as prescribed in regulations of the 
corporation, notice to plan participants and beneficiaries and each 
employee organization representing participants in the plan of the 
plan's funding status and the limits on the corporation's guaranty 
under section 4022(b) should the plan terminate while underfunded. Such 
notice shall be written in a manner so as to be understood by the 
average plan participant.
    ``(b) Exception.--Subsection (a) shall not apply to any plan which 
for the plan year has a funded current liability percentage (as defined 
in section 302(d)(8) without regard to subparagraph (E) thereof) of at 
least 90 percent.''
    (b) Conforming Amendments.--
            (1) Information included in annual report.--Section 
        103(d)(11) of such Act (29 U.S.C. 1023(d)(11)) is amended to 
        read as follows:
            ``(11) In the case of a plan which must notify participants 
        and beneficiaries under section 4011, the funded current 
        liability percentage, as determined for purposes of such 
        section.''
            (2) Information furnished to participants.--Section 
        104(b)(3) of such Act (29 U.S.C. 1024(b)(3)) is amended by 
        striking ``(including the percentage determined under section 
        103(d)(11))''.
    (c) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4010 (as added by section 203 of this Act) the following new 
item:

``Sec. 4011. Notice to participants.''
    (d) Effective Date.--The amendment made by this section shall be 
effective for plan years beginning after the date of enactment of this 
Act.

SEC. 302. MISSING PARTICIPANTS.

    (a) In General.--Subtitle C of title IV of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) (as amended by 
section 202(a) of this Act) is further amended by adding at the end the 
following new section:

                         ``missing participants

    ``Sec. 4051. (a) General Rule.--
            ``(1) Payment to the corporation.--A plan administrator 
        satisfies section 4041(b)(3)(A) in the case of a missing 
        participant only if the plan administrator--
                    ``(A) transfers the participant's designated 
                benefit to the corporation or purchases an irrevocable 
                commitment from an insurer in accordance with clause 
                (i) of section 4041(b)(3)(A), and
                    ``(B) provides the corporation such information and 
                certifications with respect to such designated benefits 
                or irrevocable commitments as the corporation shall 
                specify.
            ``(2) Treatment of transferred assets.--A transfer to the 
        corporation under this section shall be treated as a transfer 
        of assets from a terminated plan to the corporation as trustee, 
        and shall be held with assets of terminated plans for which the 
        corporation is trustee under section 4042, subject to the rules 
        set forth in that section.
            ``(3) Payment by the corporation.--After a missing 
        participant whose designated benefit was transferred to the 
        corporation is located--
                    ``(A) in any case in which the plan could have 
                distributed the benefit of the missing participant in a 
                single sum without participant or spousal consent under 
                section 205(g), the corporation shall pay the 
                participant or beneficiary a single sum benefit equal 
                to the designated benefit paid the corporation plus 
                interest as specified by the corporation, and
                    ``(B) in any other case, the corporation shall pay 
                a benefit based on the designated benefit and the 
                assumptions prescribed by the corporation at the time 
                that the corporation received the designated benefit.
        The corporation shall make payments under subparagraph (B) 
        available in the same forms and at the same times as a 
        guaranteed benefit under section 4022 would be available to be 
        paid, except that the corporation may make a benefit available 
        in the form of a single sum if the plan provided a single sum 
        benefit (other than a single sum described in subsection 
        (b)(2)(A)).
    ``(b) Definitions.--For purposes of this section--
            ``(1) Missing participant.--The term `missing participant' 
        means a participant or beneficiary under a terminating plan 
        whom the plan administrator cannot locate after a diligent 
        search.
            ``(2) Designated benefit.--The term `designated benefit' 
        means the single sum benefit the participant would receive--
                    ``(A) under the plan's assumptions, in the case of 
                a distribution that can be made without participant or 
                spousal consent under section 205(g);
                    ``(B) under the assumptions of the corporation in 
                effect on the date that the designated benefit is 
                transferred to the corporation, in the case of a plan 
                that does not pay any single sums other than those 
                described in subparagraph (A); or
                    ``(C) under the assumptions of the corporation or 
                of the plan, whichever provides the higher single sum, 
                in the case of a plan that pays a single sum other than 
                those described in subparagraph (A).
    ``(c) Regulatory Authority.--The corporation shall prescribe such 
regulations as are necessary to carry out the purposes of this section, 
including rules relating to what will be considered a diligent search, 
the amount payable to the corporation, and the amount to be paid by the 
corporation.''
    (b) Conforming Title IV Amendments.--
            (1) Amendment to section 4003.--Section 4003(a) of such Act 
        (29 U.S.C. 1303(a)) is amended in the second sentence by 
        inserting before the period the following: ``and whether 
        section 4051(a) has been satisfied''.
            (2) Amendment to section 4005.--Section 4005(b)(2)(A) of 
        such Act (29 U.S.C. 1305(b)(2)(A)) is amended by inserting ``or 
        benefits payable under section 4051'' after ``section 4022A''.
            (3) Amendment to section 4041.--Section 4041(b)(3)(A)(ii) 
        of such Act (29 U.S.C. 1341(b)(3)(A)(ii)) is amended by adding 
        at the end the following new sentence: ``A transfer of assets 
        to the corporation in accordance with section 4051 on behalf of 
        a missing participant shall satisfy this subparagraph with 
        respect to such participant.''
    (c) Conforming ERISA Amendments.--
            (1) The table of contents contained in section 1 of the 
        Employee Retirement Income Security Act of 1974 is amended by 
        inserting after the item related to section 4050 (as added by 
        section 202 of this Act) the following new item:

``Sec. 4051. Missing participants.''
            (2) Section 206 of such Act (29 U.S.C. 1056) (as amended by 
        section 101(a)(9)(B)(i) of this Act) is further amended by 
        adding at the end the following new subsection:
    ``(f) Missing Participants in Terminated Plans.--In the case of a 
plan covered by title IV, the plan shall provide that, upon termination 
of the plan, benefits of missing participants shall be treated in 
accordance with section 4051.''
    (d) Conforming Internal Revenue Code Amendments.--Section 401(a) of 
the Internal Revenue Code of 1986, as amended by section 207 of this 
Act, is further amended by inserting after paragraph (33) the following 
new paragraph:
            ``(34) Benefits of missing participants on plan 
        termination.--In the case of a plan covered by title IV of the 
        Employee Retirement Income Security Act of 1974, a trust 
        forming part of such plan shall not be treated as failing to 
        constitute a qualified trust under this section merely because 
        the pension plan of which such trust is a part, upon its 
        termination, transfers benefits of missing participants to the 
        Pension Benefit Guaranty Corporation in accordance with section 
        4051 of such Act.''
    (e) Effective Date.--The provisions of this section shall be 
effective with respect to distributions that occur in plan years 
commencing after final regulations implementing these provisions are 
prescribed by the Pension Benefit Guaranty Corporation.

SEC. 303. MODIFICATION OF MAXIMUM GUARANTEE FOR DISABILITY BENEFITS.

    (a) In General.--Section 4022(b)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended by adding 
at the end the following new sentences: ``The maximum guaranteed 
monthly benefit shall not be reduced solely on account of the age of a 
participant in the case of a benefit payable by reason of disability 
that occurred on or before the termination date, if the participant 
demonstrates to the satisfaction of the corporation that the Social 
Security Administration has determined that the participant satisfies 
the definition of disability under titles II and XVI of the Social 
Security Act, and the regulations thereunder. If a benefit payable by 
reason of disability is converted to an early or normal retirement 
benefit for reasons other than a change in the health of the 
participant, such early or normal retirement benefit shall be treated 
as a continuation of the benefit payable by reason of disability and 
this subparagraph shall continue to apply.''
    (b) Effective Date.--The amendment made by this section shall be 
effective for plan terminations under section 4041(c) of the Employee 
Retirement Income Security Act of 1974 with respect to which notices of 
intent to terminate are provided under section 4041(a)(2) of such Act, 
or under section 4042 of such Act with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

                   TITLE IV--MISCELLANEOUS AMENDMENTS

SEC. 401. ERISA CITATION.

    (a) In General.--Section 404(g)(4) of the Internal Revenue Code of 
1986 is amended by striking ``the Single Employer Pension Plan 
Amendments Act of 1986'' and inserting ``the Retirement Protection Act 
of 1994''.
    (b) Effective Date.--The amendment made by this section shall be 
effective on the date of enactment of this Act.

SEC. 402. DEFINITION OF CONTRIBUTING SPONSOR.

    (a) In General.--Paragraph (13) of section 4001(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301(a)(13)) is 
amended by striking ``means a person--'' and all that follows and 
inserting ``means a person described in section 302(c)(11)(A) of this 
Act (without regard to section 302(c)(11)(B) of this Act) or section 
412(c)(11)(A) of the Internal Revenue Code of 1986 (without regard to 
section 412(c)(11)(B) of such Code);''
    (b) Effective Date.--The amendment made by this section shall be 
effective as if included in the Pension Protection Act.

SEC. 403. TECHNICAL CORRECTIONS.

    (a) Prior Plan Terminations Taken Into Account in Applying Recovery 
Ratio.--Section 4022(c)(3)(B)(ii) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1322(c)(3)(B)(ii)) is amended to read 
as follows:
            ``(ii) notices of intent to terminate were provided, or 
        proceedings were instituted under section 4042, after December 
        17, 1987, and during the first 5 fiscal years of the 7-fiscal-
        year period ending with the fiscal year preceding the fiscal 
        year for which the recovery ratio is being determined.''
    (b) Clarification under Distress Termination Rules of Date for 
Determinations Relating to Subsequent Insufficiency.--Section 4022(c) 
of such Act (29 U.S.C. 1322(c)) is amended by adding at the end the 
following new subsection:
    ``(5) For purposes of this subsection, in the case of a plan 
described in section 4041(c)(3)(C)(ii), the outstanding amount of 
benefit liabilities and the value of the recoveries of the corporation 
under section 4062, 4063, or 4064 in connection with such plan shall be 
determined as of the date described in section 4062(b)(1)(B).''.
    (c) Inclusion of Termination Proceedings Instituted by Corporation 
in Transitional Rule.--Section 9312(b)(3)(B)(i) of the Omnibus Budget 
Reconciliation Act of 1987 (101 Stat. 1330-363) is amended by inserting 
after ``notices of intent to terminate were provided'' the following: 
``, or proceedings were instituted under section 4042 of ERISA,''.
    (d) Clarification of Period.--Section 4044(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1344(c)) is amended 
in the first sentence--
            (1) by striking ``the later of (1)'';
            (2) by striking ``or (2)'' and inserting ``and ending on'';
            (3) by striking ``is to be'' and inserting ``shall be''; 
        and
            (4) by striking ``in any other case'' and inserting ``(in 
        any other case)''.
    (e) Effective Date.--The amendments made by this section shall be 
effective as if included in section 9312 of the Pension Protection Act 
(101 Stat. 1330-361).

SEC. 404. DISTRESS TERMINATION CRITERIA FOR BANKING INSTITUTIONS.

    (a) Clarification of Distress Criterion.--Subclause (I) of section 
4041(c)(2)(B)(i) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341(c)(2)(B)(i)(I)) is amended by inserting after ``under 
any similar'' the following: ``Federal law or''.
    (b) Effective Date.--The amendment made by this section shall be 
effective as if included in the Single Employer Pension Plan Amendments 
Act of 1986.

SEC. 405. SINGLE SUM DISTRIBUTIONS.

    (a) Amendments to Employee Retirement Income Security Act of 
1974.--
            (1) Determination of present value for purposes of 
        restrictions on mandatory distributions.--Section 203(e)(2) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1053(e)(2)) is amended to read as follows:
            ``(2) For purposes of paragraph (1), the present value 
        shall be calculated in accordance with section 205(g)(3).''
            (2) Determination of present value for purposes of 
        restrictions on cash-outs.--Section 205(g)(3) of such Act (29 
        U.S.C. 1055(g)(3)) is amended to read as follows:
    ``(3) Determination of present value.--
            ``(A) In general.--
                    ``(i) Present value.--Except as provided in 
                subparagraph (B), for purposes of paragraphs (1) and 
                (2), the present value shall not be less than the 
                present value calculated by using the applicable 
                mortality table and the applicable interest rate.
                    ``(ii) Definitions.--For purposes of clause (i)--
                            ``(I) Applicable mortality table.--The term 
                        `applicable mortality table' means the table 
                        prescribed by the Secretary of the Treasury. 
                        Such table shall be based on the prevailing 
                        commissioners' standard table (described in 
                        section 807(d)(5)(A) of the Internal Revenue 
                        Code of 1986) used to determine reserves for 
                        group annuity contracts issued on the date as 
                        of which present value is being determined 
                        (without regard to any other subparagraph of 
                        section 807(d)(5) of such Code).
                            ``(II) Applicable interest rate.--The term 
                        `applicable interest rate' means the annual 
                        rate of interest on 30-year Treasury securities 
                        for the month before the date of distribution 
                        or such other time as the Secretary of the 
                        Treasury may by regulations prescribe.
            ``(B) Exception.--In the case of a distribution from a plan 
        that was adopted and in effect prior to the date of the 
        enactment of the Retirement Protection Act of 1994, the present 
        value of any distribution made before the earlier of--
                    ``(i) the later of when a plan amendment applying 
                subparagraph (A) is adopted or made effective, or
                    ``(ii) the first day of the first plan year 
                beginning after December 31, 1999,
        shall be calculated, for purposes of paragraphs (1) and (2), 
        using the interest rates determined under the regulations of 
        the Pension Benefit Guaranty Corporation for determining the 
        present value of a lump sum distribution on plan termination 
        that were in effect on September 1, 1993, and using the 
        provisions of the plan as in effect on the day before the date 
        of the enactment of the Retirement Protection Act of 1994; but 
        only if such provisions of the plan met the requirements of 
        section 205(g)(3) as in effect on the day before such date of 
        enactment.''
    (b) Amendments to Internal Revenue Code of 1986 Relating to Minimum 
Benefits.--
            (1) Determination of present value for purposes of 
        restrictions on mandatory distributions.--Subparagraph (B) of 
        section 411(a)(11) of the Internal Revenue Code of 1986 is 
        amended to read as follows:
                    ``(B) Determination of present value.--For purposes 
                of subparagraph (A), the present value shall be 
                calculated in accordance with section 417(e)(3).''
            (2) Determination of present value for purposes of 
        restrictions on cash-outs.--Paragraph (3) of section 417(e) of 
        such Code is amended to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i)--
                                    ``(I) Applicable mortality table.--
                                The term `applicable mortality table' 
                                means the table prescribed by the 
                                Secretary. Such table shall be based on 
                                the prevailing commissioners' standard 
                                table (described in section 
                                807(d)(5)(A)) used to determine 
                                reserves for group annuity contracts 
                                issued on the date as of which present 
                                value is being determined (without 
                                regard to any other subparagraph of 
                                section 807(d)(5)).
                                    ``(II) Applicable interest rate.--
                                The term `applicable interest rate' 
                                means the annual rate of interest on 
                                30-year Treasury securities for the 
                                month before the date of distribution 
                                or such other time as the Secretary may 
                                by regulations prescribe.
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect before the 
                date of the enactment of the Retirement Protection Act 
                of 1994, the present value of any distribution made 
                before the earlier of--
                            ``(i) the later of the date a plan 
                        amendment applying subparagraph (A) is adopted 
                        or made effective, or
                            ``(ii) the first day of the first plan year 
                        beginning after December 31, 1999,
                shall be calculated, for purposes of paragraphs (1) and 
                (2), using the interest rates determined under the 
                regulations of the Pension Benefit Guaranty Corporation 
                for determining the present value of a lump sum 
                distribution on plan termination that were in effect on 
                September 1, 1993, and using the provisions of the plan 
                as in effect on the day before the date of the 
                enactment of the Retirement Protection Act of 1994; but 
                only if such provisions of the plan met the 
                requirements of section 417(e)(3) as in effect on the 
                day before such date of enactment.''
    (c) Amendments to Internal Revenue Code of 1986 Relating to Maximum 
Benefits.--Subparagraph (E) of section 415(b)(2) of such Code is 
amended--
            (1) by redesignating clauses (ii) and (iii) as clauses 
        (iii) and (iv), respectively,
            (2) by striking clause (i) and inserting the following new 
        clauses:
                            ``(i) Except as provided in clause (ii), 
                        for purposes of adjusting any benefit or 
                        limitation under subparagraph (B) or (C), the 
                        interest rate assumption shall not be less than 
                        the greater of 5 percent or the rate specified 
                        in the plan.
                            ``(ii) For purposes of adjusting the 
                        benefit or limitation of any form of benefit 
                        subject to section 417(e)(3), the applicable 
                        interest rate (as defined in section 417(e)(3)) 
                        shall be substituted for `5 percent' in clause 
                        (i).'', and
            (3) by adding at the end the following new clause:
                            ``(v) For purposes of adjusting any benefit 
                        or limitation under subparagraph (B), (C), or 
                        (D), the mortality table used shall be the 
                        table prescribed by the Secretary. Such table 
                        shall be based on the prevailing commissioners' 
                        standard table (described in section 
                        807(d)(5)(A)) used to determine reserves for 
                        group annuity contracts issued on the date the 
                        adjustment is being made (without regard to any 
                        other subparagraph of section 807(d)(5)).''
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years and limitation years beginning after 
        December 31, 1994; except that an employer may elect to treat 
        the amendments made by this section as being effective on or 
        after the date of enactment.
            (2) No reduction in accrued benefits.--A participant's 
        accrued benefit shall not be considered to be reduced in 
        violation of section 411(d)(6) of the Internal Revenue Code of 
        1986 or section 204(g) of the Employee Retirement Income 
        Security Act of 1974 merely because (A) the benefit is 
        determined in accordance with section 417(e)(3)(A) of such 
        Code, as amended by this Act, or section 205(g)(3) of the 
        Employee Retirement Income Security Act of 1974, as amended by 
        this Act, or (B) the plan applies section 415(b)(2)(E) of such 
        Code, as amended by this Act.
            (3) Section 415.--
                    (A) No reduction required.--An accrued benefit 
                shall not be required to be reduced below the accrued 
                benefit as of the last day of the last plan year 
                beginning before January 1, 1995, merely because of the 
                amendments made by subsection (b).
                    (B) Timing of plan amendment.--A plan that operates 
                in accordance with the amendments made by subsection 
                (b) shall not be treated as failing to satisfy section 
                401(a) of the Internal Revenue Code of 1986 or as not 
                being operated in accordance with the provisions of the 
                plan until such date as the Secretary of the Treasury 
                provides merely because the plan has not been amended 
                to include the amendments made by subsection (b).

SEC. 406. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.

    (a) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) Clarification of applicability of provision.--Section 
        302(f)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1082(f)(1)) is amended by striking ``to which 
        this section applies'' and inserting ``covered under section 
        4021 of this Act''.
            (2) Repeal of $1,000,000 offset.--Paragraph (3) of section 
        302(f) of such Act is amended to read as follows:
            ``(3) Amount of lien.--For purposes of paragraph (1), the 
        amount of the lien shall be equal to the aggregate unpaid 
        balance of required installments and other payments required 
        under this section (including interest)--
                    ``(A) for plan years beginning after 1987, and
                    ``(B) for which payment has not been made before 
                the due date.''
            (3) Repeal of 60-day delay.--Section 302(f)(4)(B) of such 
        Act is amended by striking ``60th day following the''.
    (b) Amendments to the Internal Revenue Code of 1986.--
            (1) Clarification of applicability of provision.--Paragraph 
        (2) of section 412(n) of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new sentence: ``This 
        subsection shall not apply to any plan to which section 4021 of 
        the Employee Retirement Income Security Act of 1974 does not 
        apply (as such section is in effect on the date of the 
        enactment of the Retirement Protection Act of 1994).''.
            (2) Repeal of $1,000,000 offset.--Paragraph (3) of section 
        412(n) of such Code is amended to read as follows:
            ``(3) Amount of lien.--For purposes of paragraph (1), the 
        amount of the lien shall be equal to the aggregate unpaid 
        balance of required installments and other payments required 
        under this section (including interest)--
                    ``(A) for plan years beginning after 1987, and
                    ``(B) for which payment has not been made before 
                the due date.''
            (3) Repeal of 60-day delay.--Section 412(n)(4)(B) of such 
        Code is amended by striking ``60th day following the''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under section 
412 of the Internal Revenue Code of 1986 or under part 3 of subtitle B 
of title I of the Employee Retirement Income Security Act of 1974 that 
become due on or after the date of enactment.

SEC. 407. ROUNDING RULES FOR COST-OF-LIVING ADJUSTMENTS.

    (a) Cost-of-Living Adjustment for Compensation Limit.--Section 
401(a)(17)(B) of the Internal Revenue Code of 1986 is amended to read 
as follows:
                    ``(B) Cost-of-living adjustment.--The Secretary 
                shall adjust annually the $150,000 amount in 
                subparagraph (A) for increases in the cost-of-living at 
                the same time and in the same manner as adjustments 
                under section 415(d); except that the base period shall 
                be the calendar quarter beginning October 1, 1993, and 
                any increase which is not a multiple of $10,000 shall 
                be rounded to the next lowest multiple of $10,000.''
    (b) Cost-of-Living Adjustment for Maximum Defined Benefit Amount 
and Maximum Annual Addition.--
            (1) In general.--Section 415(d) of such Code is amended to 
        read as follows:
    ``(d) Cost-of-Living Adjustments.--
            ``(1) In general.--The Secretary shall adjust annually--
                    ``(A) the $90,000 amount in subsection (b)(1)(A),
                    ``(B) in the case of a participant who separated 
                from service, the amount taken into account under 
                subsection (b)(1)(B), and
                    ``(C) the $30,000 amount in subsection (c)(1)(A),
        for increases in the cost-of-living in accordance with 
        regulations prescribed by the Secretary.
            ``(2) Method.--The regulations prescribed under paragraph 
        (1) shall provide for--
                    ``(A) an adjustment with respect to any calendar 
                year based on the increase in the applicable index for 
                the calendar quarter ending September 30 of the 
                preceding calendar year over such index for the base 
                period, and
                    ``(B) adjustment procedures which are similar to 
                the procedures used to adjust benefit amounts under 
                section 215(i)(2)(A) of the Social Security Act.
            ``(3) Base period.--For purposes of paragraph (2)--
                    ``(A) $90,000 amount.--The base period taken into 
                account for purposes of paragraph (1)(A) is the 
                calendar quarter beginning October 1, 1986.
                    ``(B) Separations after december 31, 1994.--The 
                base period taken into account for purposes of 
                paragraph (1)(B) with respect to individuals separating 
                from service with the employer after December 31, 1994, 
                is the calendar quarter beginning July 1 of the 
                calendar year preceding the calendar year in which such 
                separation occurs.
                    ``(C) Separations before january 1, 1995.--The base 
                period taken into account for purposes of paragraph 
                (1)(B) with respect to individuals separating from 
                service with the employer before January 1, 1995, is 
                the calendar quarter beginning October 1 of the 
                calendar year preceding the calendar year in which such 
                separation occurs.
                    ``(D) $30,000 amount.--The base period taken into 
                account for purposes of paragraph (1)(C) is the 
                calendar quarter beginning October 1, 1993.
            ``(4) Rounding.--Any increase under subparagraph (A) or (C) 
        of paragraph (1) which is not a multiple of $5,000 shall be 
        rounded to the next lowest multiple of $5,000.''
            (2) Conforming amendment.--Section 415(c)(1)(A) of such 
        Code is amended by striking ``(or, if greater, \1/4\ of the 
        dollar limitation in effect under subsection (b)(1)(A))''.
    (c) Cost-of-Living Adjustment for Maximum Salary Deferral.--Section 
402(g)(5) of such Code is amended by inserting before the period ``; 
except that any increase under this paragraph which is not a multiple 
of $500 shall be rounded to the next lowest multiple of $500''.
    (d) Cost-of-Living Adjustment for Eligibility for Simplified 
Employee Pensions.--Section 408(k)(8) of such Code is amended by 
inserting before the period ``; except that any increase in the $300 
amount which is not a multiple of $50 shall be rounded to the next 
lowest multiple of $50''.
    (e) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 1994.

SEC. 408. FUNDING OF RESTORED PLANS.

    Any changes made by this Act to section 412 of the Internal Revenue 
Code of 1986 or to part 3 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 shall not apply to a plan which 
is, on the date of enactment of this Act, subject to a restoration 
payment schedule order issued by the Pension Benefit Guaranty 
Corporation that meets the requirements of section 1.412(c)(1)-3 of the 
Treasury Regulations.

SEC. 409. STUDY OF FUNDING STATUS OF FEDERAL, STATE, AND LOCAL 
              GOVERNMENT PENSION PLANS.

    (a) In General.--The Comptroller General shall conduct a study of 
the underfunding of Federal, State, and local government pension plans. 
Such study shall address the causes and implications of such 
underfunding, as well as the feasibility of requiring such plans to 
comply with funding, reporting, and disclosure requirements imposed by 
Federal law on private pension plans.
    (b) Report.--The report of such study shall be submitted not later 
than one year after the date of the enactment of this Act to the 
Committee on Education and Labor, the Committee on Post Office and 
Civil Service, and the Committee on Ways and Means of the House of 
Representatives and the Committee on Labor and Human Resources, the 
Committee on Government Affairs, and the Committee on Finance of the 
Senate.

               TITLE V--EFFECTIVE DATES AND RELATED RULES

SEC. 501. EFFECTIVE DATES.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall be effective on the date of enactment of this Act.

SEC. 502. DELAY IN CHANGES TO PREVAILING COMMISSIONERS' TABLE.

    For purposes of sections 205(g)(3) and 302(d)(7)(C) of the Employee 
Retirement Income Security Act of 1974 and sections 412(l)(7)(C), 
415(b), and 417(e)(3) of the Internal Revenue Code of 1986, any change 
in the prevailing commissioners' standard table described in section 
807(d)(5)(A) of such Code shall be appropriate for pension plans and 
apply to plan years beginning on or after the later of--
            (1) January 1, 2000, or
            (2) a date, as prescribed by the Secretary of the Treasury, 
        after the date of the issuance by the Secretary of a revised 
        table based on the prevailing commissioners' standard table.
Any such revised table shall be issued by regulation. In issuing such 
regulations, the Secretary shall take into account the results of 
available independent studies with respect to the appropriate bases for 
such a table and after opportunity for public comment regarding such 
studies.
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