I

103D CONGRESS

2D SESSION H. R. 3396

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

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Retirement Protection Act of 1993’’.

4 (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. Recognition of Already 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. Recognition of Already 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 to Maximum Guarantee of Disability Benefits.

TITLE IV—MISCELLANEOUS AMENDMENTS

Sec. 401. ERISA Citation.

Sec. 402 Definition of Contributing Sponsor.

Sec. 403. Recovery Ratio under ERISA Section 4022(c).

Sec. 404. Distress Termination Criteria for Banking Institutions.

Sec. 405. Single Sum Distributions.
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Sec. 406. Adjustments to Lien for Missed Minimum Funding Contributions.

Sec. 407. Rounding Rules for Cost of Living Adjustments.

Sec. 408. Limitation on Cross-Testing in Defined Contribution Plans.

Sec. 409. Funding of Restored Plans.

TITLE V—EFFECTIVE DATES

Sec. 501. Effective Dates.

1 TITLE I—PENSION PLAN

2 FUNDING

3 Subtitle A—Amendments to the

4 Internal Revenue Code of 1986

5 SEC. 101. MINIMUM FUNDING REQUIREMENTS.

6 (a) AMENDMENTS TO ADDITIONAL FUNDING RE7 QUIREMENTS FOR SINGLE-EMPLOYER PLANS.—

8 (1) RELATIONSHIP OF ADDITIONAL FUNDING

9 REQUIREMENT TO FUNDING STANDARD ACCOUNT

10 CHARGES AND CREDITS.—

11 (A) Clause (ii) of section 412(l)(1)(A) of

12 the Internal Revenue Code of 1986 is amended

13 to read as follows:

14 ‘‘(ii) the sum of the charges for such

15 plan years under subsection (b)(2), re16 duced by the sum of the credits for such

17 plan year under subparagraph (B) of sub18 section (b)(3), and’’.

19 (B) The last sentence in section 412(l)(1)

20 is amended to read as follows: ‘‘Such increase

21 shall not exceed the amount necessary to in22 crease the funded current liability percentage
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1 (taking into account the expected increase in

2 current liability due to benefits accruing during

3 the plan year) to 100 percent, reduced by the

4 amount described in clause (ii) of paragraph

5 (A).’’

6 (2) AMENDMENT TO DEFICIT REDUCTION CON7 TRIBUTION.—Paragraph (2) of section 412(l) of the

8 Code is amended—

9 (A) by striking the period and inserting ‘‘,

10 and’’ at the end of subparagraph (B); and

11 (B) by adding at the end thereof a new

12 subparagraph (C) to read as follows:

13 ‘‘(C) the expected increase in current li14 ability due to benefits accruing during the plan

15 year.’’

16 (3) INCREASE IN CURRENT LIABILITY DUE TO

17 CHANGE IN REQUIRED ASSUMPTIONS.—

18 (A) Paragraph (3) of section 412(l) of the

19 Code is amended by adding at the end thereof

20 a new subparagraph to read as follows:

21 ‘‘(D) SPECIAL RULE FOR REQUIRED

22 CHANGES IN ACTUARIAL ASSUMPTIONS.—

23 ‘‘(i) The unfunded old liability amount

24 with respect to any plan for any plan year

25 shall be increased by the amount necessary
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1 to amortize the amount of additional un2 funded old liability under the plan, deter3 mined under clause (ii), in equal annual in4 stallments over a period of 12 plan years

5 (beginning with the first plan year begin6 ning after December 31, 1994).

7 ‘‘(ii) the term ‘additional unfunded

8 old liability’ means the amount (if any) by

9 which—

10 ‘‘(I) the current liability of the

11 plan as of the beginning of the first

12 plan year beginning after December

13 31, 1994 valued using the assump14 tions required in paragraph (7)(C) of

15 this subsection as in effect for plan

16 years beginning after December 31,

17 1994, exceeds

18 ‘‘(II) the current liability of the

19 plan as of the beginning of the first

20 plan year beginning after December

21 31, 1994, valued using the prior inter22 est rate and using such mortality as23 sumptions as were used to determine

24 current liability for the first plan year

25 beginning after December 31, 1992.
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1 ‘‘(iii) For purposes of clause (ii), the

2 term ‘prior interest rate’ means the rate of

3 interest that is the same percentage of the

4 weighted average under paragraph (5) of

5 subsection (b) for the first plan year begin6 ning after December 31, 1994 as the rate

7 of interest that was used by the plan to de8 termine current liability for the first plan

9 year beginning after December 31, 1992

10 was of the weighted average under such

11 paragraph (5) of subsection (b) for such

12 first plan year beginning after December

13 31, 1992. With the exception of assump14 tions concerning the rate of interest and

15 mortality, the assumptions used for deter16 mining current liability under subclause (I)

17 of clause (ii) shall also be used to deter18 mine current liability under subclause (II)

19 of clause (ii).’’

20 (4) APPLICABLE PERCENTAGE FOR DETERMIN21 ING UNFUNDED NEW LIABILITY AMOUNT.—Clause

22 (ii) of section 412(l)(4)(C) of the Code is amended

23 by replacing ‘‘35’’ with ‘‘60’’.

24 (5) UNPREDICTABLE CONTINGENT EVENT

25 AMOUNT.—
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1 (A) Paragraph (5)(A) of section 412(l) of

2 the Code is amended—

3 (i) by inserting ‘‘greatest of’’ for

4 ‘‘greater of’’ before clause (i);

5 (ii) by striking ‘‘or’’ at the end of

6 clause (i);

7 (iii) by striking the period at the end

8 of clause (ii) and inserting ‘‘, or’’; and

9 (iv) by adding a new clause (iii) to

10 read as follows:

11 ‘‘(iii) the additional amount that

12 would be determined under paragraph

13 (4)(A) if the unpredictable contingent

14 event benefit liabilities were included in

15 unfunded new liability notwithstanding

16 paragraph (4)(B)(ii).’’

17 (B) Paragraph (5) of section 412(l) of the

18 Code is amended by adding a new subpara19 graph (E) to read as follows:

20 ‘‘(E) LIMITATION.—The present value of

21 the amounts described in subparagraph (A)

22 with respect to any one event shall not exceed

23 the unpredictable contingent event benefit li24 abilities attributable to that event.’’
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1 (6) REQUIRED INTEREST RATE AND MORTALITY

2 ASSUMPTIONS FOR DETERMINING CURRENT LIABIL3 ITY.—Paragraph (7)(C) of section 412(l) of the

4 Code is amended to read as follows:

5 ‘‘(C) INTEREST RATE AND MORTALITY AS6 SUMPTIONS USED.—Effective for plan years be7 ginning after December 31, 1994—

8 ‘‘(i) the rate of interest used to deter9 mine current liability under this subsection

10 shall be the rate of interest used under

11 subsection (b)(5), except the permissible

12 range under subparagraph (B)(ii) of such

13 subsection (b)(5) shall not exceed 100 per14 cent of the weighted average referred to in

15 such subparagraph, and

16 ‘‘(ii) the mortality table used to deter17 mine current liability under this subsection

18 shall be the prevailing commissioners’

19 standard table (described in section

20 807(d)(5)(A)) that would be used to deter21 mine reserves for group annuity contracts

22 issued on the date as of which current li23 ability is determined (without regard to

24 any other subparagraph of section

25 807(d)(5)).’’
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1 (7) TRANSITION RULE.—Section 412(l) of the

2 Code is amended by adding at the end thereof a new

3 paragraph (9) to read as follows:

4 ‘‘(9) ADDITIONAL LIMITATIONS.—

5 ‘‘(A) For any applicable plan year, at the

6 election of the employer (in such manner as is

7 prescribed by the Secretary), the increase under

8 paragraph (1) shall not exceed the greater of—

9 ‘‘(i) the increase that would have been

10 required under the provisions of such para11 graph (1) as in effect for plan years begin12 ning before January 1, 1995 if such provi13 sions had remained in effect for the appli14 cable plan year, or

15 ‘‘(ii) the amount necessary to increase

16 the funded current liability percentage

17 (taking into account the expected increase

18 in current liability due to benefits accruing

19 during the plan year) for the applicable

20 plan year to a funded current liability per21 centage equal to the sum of the initial

22 funded current liability percentage of the

23 plan plus the applicable number of percent24 age points for such applicable plan year,
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1 reduced by the amount determined under

2 paragraph (1)(A)(ii).

3 ‘‘(B)(i) Except as provided in clause (iii),

4 for plans with an initial funded current liability

5 percentage that is equal to or less than 75 per6 cent, the applicable number of percentage

7 points for the applicable plan year is:

‘‘In the case of applicable

plan years beginning in:

The applicable number of percent point is:

1995 ............................................... 3

1996 ............................................... 6

1997 ............................................... 9

1998 ............................................... 12

1999 ............................................... 15

2000 ............................................... 19

2001 ............................................... 24.

8 ‘‘(ii) For plans with an initial funded cur9 rent liability percentage that is equal to or

10 greater than 85 percent, the applicable number

11 of percentage points for the applicable plan

12 year is:

‘‘In the case of applicable

plan years beginning in:

The applicable number of percentage points is:

1995 ............................................... 2

1996 ............................................... 4

1997 ............................................... 6

1998 ............................................... 8

1999 ............................................... 10

2000 ............................................... 13

2001 ............................................... 15.

13 ‘‘(iii) For plans with an initial funded cur14 rent liability percentage that is greater than 75

15 percent but less than 85 percent, or for plans

16 with an initial funded current liability percent-
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1 age equal to or less than 75 percent for which,

2 as of a later applicable plan year, the sum of

3 the initial funded current liability percentage

4 and the applicable number of percentage points

5 attributable to the previous applicable plan year

6 exceed 75 percent, the applicable number of

7 percentage points for any such applicable plan

8 year is the sum of—

9 ‘‘(I) 2 percentage points;

10 ‘‘(II) the applicable number of per11 centage points attributable to the previous

12 applicable plan year (except that such

13 number for the applicable plan year begin14 ning in 1995 is zero);

15 ‘‘(III) the product of .10 multiplied by

16 the excess, if any, of (a) 85 percentage

17 over (b) the sum of the initial funded cur18 rent liability percentage and the number

19 under subclause (II);

20 ‘‘(IV) for applicable plan years begin21 ning in 2000, 1 percentage point; and

22 ‘‘(V) for applicable plan years begin23 ning in 2001, 2 percentage points.

24 ‘‘(D) DEFINITIONS.—For purposes of this

25 paragraph:
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1 ‘‘(i) ‘Applicable plan year’ means a

2 plan year beginning after December 31,

3 1994, and before January 1, 2002.

4 ‘‘(ii) ‘Initial funded current liability

5 percentage’ means the funded current li6 ability percentage as of the first day of the

7 first plan year beginning after December

8 31, 1994.’’

9 (8) THREE-YEAR SOLVENCY REQUIREMENT.—

10 (A) Section 412(m) of such Code is

11 amended by adding at the end thereof a new

12 paragraph (6) to read as follows:

13 ‘‘(6) THREE-YEAR SOLVENCY REQUIREMENT.—

14 ‘‘(A) IN GENERAL.—This paragraph ap15 plies to a defined benefit plan that—

16 ‘‘(i) is required to make quarterly con17 tributions under this subsection for a plan

18 year, and

19 ‘‘(ii) has liquid assets as of the last

20 day of the last month preceding the quar21 terly installment date that are less than

22 the base amount for the quarter.

23 ‘‘(B) AMOUNT OF QUARTERLY CONTRIBU24 TION.—The amount of the required installment

25 that is due for any quarter under this sub-
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1 section is the greater of the amount under this

2 subsection (without regard to this paragraph)

3 or the quarterly solvency payment. Such

4 amount, when added to prior installments for

5 the plan year, shall not exceed the amount nec6 essary to increase the funded currently liability

7 percentage (taking into account the expected in8 crease in current liability due to benefits accru9 ing during the plan year) to 100 percent.

10 ‘‘(C) DEFINITIONS.—For purposes of this

11 paragraph:

12 ‘‘(i) BASE AMOUNT.—‘Base amount’

13 means an amount that is the product of

14 three multiplied by the sum of the adjusted

15 disbursements from the plan for the 12

16 months ending on the last day of the last

17 month preceding the quarterly installment

18 due date. If the amount computed under

19 the previous sentence exceeds the product

20 of two multiplied by the sum of adjusted

21 disbursements for the 36 months ending

22 on the last day of the last month preceding

23 the quarterly installment due date, and an

24 enrolled actuary certifies to the Secretary

25 that the excess is the result of non-
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1 recurring circumstances, the base amount

2 shall exclude amounts related to those non3 recurring circumstances.

4 ‘‘(ii) DISBURSEMENTS FROM THE

5 PLAN.—The term ‘disbursements from the

6 plan’ means all disbursements from the

7 trust, including purchases of annuities,

8 payment of single sums and the benefit

9 payments, and administrative expenses.

10 ‘‘(iii) ADJUSTED DISBURSEMENTS.—

11 ‘Adjusted disbursements’ means the

12 amount of disbursements reduced by the

13 product of the plan’s funded current liabil14 ity percentage (as defined in subsection

15 (1)(8)(B)) for the plan year multiplied by

16 the sum of annuity purchases, single sum

17 distributions, and such other disburse18 ments as the Secretary shall provide in

19 regulations.

20 ‘‘(iv) LIQUID ASSETS.—‘Liquid assets’

21 means cash, marketable securities and

22 such other assets as specified by the Sec23 retary.

24 ‘‘(v) QUARTERLY SOLVENCY PAY25 MENT.—‘Quarterly solvency payment’
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1 means an amount of liquid assets equal to

2 the difference between the plan’s liquid as3 sets and the base amount, as of the last

4 day of a quarter.

5 ‘‘(D) EFFECT OF SOLVENCY CONTRIBU6 TION.—

7 ‘‘(i) A quarterly solvency payment

8 shall be treated in the same manner as a

9 quarterly required installment, except that

10 paragraph (2)(C) shall be applied by ap11 plying contributions to the latest outstand12 ing quarterly solvency payment. For pur13 poses of paragraph (2)(B), a quarterly sol14 vency payment that is not paid timely shall

15 not be considered paid until the earlier of

16 the last day of a later quarter for which ei17 ther (I) the plan does not have a quarterly

18 solvency payment required, or (II) the sol19 vency payment for such later quarter is

20 paid timely.

21 ‘‘(ii) The Secretary shall provide such

22 rules as are necessary to avoid duplication

23 or omission of any factors in the deter24 mination and application of this require25 ment.’’
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1 (B) EXCISE TAX ON UNPAID QUARTERLY

2 SOLVENCY PAYMENTS.—

3 (i) Subsection (e) of section 4971 of

4 the Code is amended by striking ‘‘(a) or

5 (b)’’ wherever it appears and replacing it

6 with ‘‘(a), (b) or (f)’’.

7 (ii) Section 4971 of the Code is

8 amended by redesignating subsection (f) as

9 subsection (g) and adding a new subsection

10 (f) to read as follows:

11 ‘‘(f)(1) For each quarter of the plan year of a plan

12 to which section 412 applies, there is imposed a tax of

13 10 percent of the amount of any outstanding quarterly

14 solvency payments, as described in section 412(m)(6). A

15 quarterly solvency payment shall no longer be considered

16 outstanding on the earlier of the last day of a later quarter

17 for which either (A) the plan does not have a quarterly

18 solvency payment required, or (B) the solvency payment

19 for such later quarter is paid timely.

20 ‘‘(2) If by the end of the fourth quarter following the

21 quarter for which a quarterly solvency payment was due,

22 either the plan has a quarterly solvency payment due, or

23 the solvency payment for such later quarter was not paid

24 timely, (A) there is hereby imposed a tax equal to 100

25 percent of the unpaid solvency payment for such earlier
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1 quarter, and (B) the quarterly solvency payment for such

2 earlier quarter shall no longer be considered outstanding.’’

3 (C) OUTSTANDING QUARTERLY SOLVENCY

4 PAYMENTS.—Section 401(a) of such Code is

5 amended by adding a new paragraph (32) at

6 the end thereof to read as follows:

7 ‘‘(32) OUTSTANDING QUARTERLY SOLVENCY

8 PAYMENTS.—A trust forming part of a pension plan

9 shall not be treated as failing to constitute a quali10 fied trust under this section merely because the pen11 sion plan of which such trust is a part ceases to

12 make prohibited payments during a period in which

13 a quarterly solvency payment, as defined in section

14 412(m)(6), is outstanding. A prohibited payment is

15 any payment, in excess of the monthly amount paid

16 under a single life annuity (plus any social security

17 supplements, within the meaning of section

18 411(a)(9)), to a participant or beneficiary whose an19 nuity starting date, as defined in section 417(f)(2),

20 occurs during the period in which there are out21 standing quarterly solvency payments, any purchase

22 during such period of an irrevocable commitment

23 from an insurer to pay benefits, and such other pay24 ments as provided by the Secretary. For purposes of

25 this subsection, a quarterly solvency payment shall
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1 no longer be considered outstanding on the earlier of

2 the last day of a later quarter for which either (A)

3 the plan does not have a quarterly solvency payment

4 required, or (B) the solvency payment for such later

5 quarter is paid timely.’’

6 (9) AMENDMENT TO FULL FUNDING DEFINI7 TION.—

8 (A) Subclause (I) of subsection

9 412(c)(7)(A)(i) is amended by inserting ‘‘(in10 cluding the expected increase in current liability

11 due to benefits accruing during the plan year)’’

12 after ‘‘current liability’’.

13 (B) Section 412(c)(7) is further amended

14 by inserting in flush language after subpara15 graph (A), a sentence to read as follows: ‘‘In

16 any plan year in which a plan has unfunded

17 current liability under subsection (l)(8), the

18 amount in this subparagraph (A) shall not be

19 less than such unfunded current liability.’’

20 (C) Subparagraph (B) of subsection

21 412(c)(7) is amended to read as follows:

22 ‘‘(B) CURRENT LIABILITY.—For purposes

23 of subparagraph (D) and subclause (I) of sub24 paragraph (A)(i), the term ‘current liability’

25 has the meaning given such term by subsection
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1 (l)(7) (without regard to the interest rate and

2 mortality assumptions required therein, and

3 without regard to subparagraph (D) thereof).’’

4 (b) EFFECTIVE DATE.—The amendments made by

5 this section shall be effective for plan years beginning after

6 December 31, 1994.

7 SEC. 102. LIMITATION ON CHANGES IN CURRENT LIABILITY

8 ASSUMPTIONS.

9 (a) Section 412(c) is amended by redesignating para10 graph (5) as subparagraph (5)(A), and by adding a new

11 subparagraph (5)(B) to read as follows:

12 ‘‘(B)(i) CHANGE IN ASSUMPTIONS RE13 QUIRES APPROVAL.—If the actuarial assump14 tions (other than the assumptions described in

15 subsection (l)(7)(C)) used to determine the cur16 rent liability for a plan are changed, the new

17 actuarial assumptions shall become the actuar18 ial assumptions used to determine current li19 ability for the plan only if the change is ap20 proved by the Secretary.

21 ‘‘(ii) Clause (i) shall not apply unless—

22 ‘‘(I) the plan is subject to the require23 ments of subsection (l);
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1 ‘‘(II) the requirements of section

2 4043(b)(1) of the Employee Retirement

3 Income Security Act of 1974 are met; and

4 ‘‘(III) the change in assumptions (de5 termined after taking into account any

6 changes in interest rate and mortality

7 table) results in a decrease in the un8 funded current liability of the plan for the

9 current plan year that is $50,000,000 or

10 greater, or that is $5,000,000 or greater

11 and that is 5 percent or more of the cur12 rent liability of the plan before such

13 change.’’

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

15 this section shall be effective with respect to assumption

16 changes in plan years beginning after October 28, 1993.

17 Assumption changes made in plan years beginning after

18 December 31, 1992 that would have required approval

19 under this amended section had it been in effect at the

20 time of such changes, shall not be effective for plan years

21 beginning after December 31, 1994 unless approved by

22 the Secretary.
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1 SEC. 103. RECOGNITION OF ALREADY BARGAINED

2 CHANGES IN LIABILITY.

3 (a) Section 412(c) is amended by adding a new para4 graph (12) at the end thereof to read as follows:

5 ‘‘(12) PLAN LIABILITIES ARISING FROM

6 AMENDMENTS EFFECTIVE IN THE FUTURE.—A col7 lectively bargained plan described in section 413(a)

8 shall anticipate benefit increases scheduled to take

9 effect during the term of the collective bargaining

10 agreement applicable to the plan at the same time

11 and in the same manner as if the plan amendment

12 implementing the provision of the collective bargain13 ing agreement were adopted by the parties when the

14 parties entered into the collective bargaining agree15 ment.’’

16 (b) EFFECTIVE DATE.—The amendments made by

17 this section shall be effective for plan years beginning after

18 December 31, 1994 with respect to collective bargaining

19 agreements in effect on or after January 1, 1995.

20 SEC. 104. MODIFICATION OF QUARTERLY CONTRIBUTION

21 REQUIREMENT.

22 (a) Section 412(m) of the Internal Revenue Code of

23 1986, as amended by section 101 of this Act, is further

24 amended by adding at the end thereof a new paragraph

25 (7) to read as follows:
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1 ‘‘(7) APPLICABILITY OF THIS SUBSECTION.—

2 This subsection applies only with respect to a plan

3 year for which the funded current liability percent4 age of such plan (within the meaning of subsection

5 (l)(8)(B)) for the preceding plan year is less than

6 100 percent.’’

7 (b) EFFECTIVE DATE.—The amendment made by

8 this section shall be effective for plan years beginning after

9 the date of enactment of this Act.

10 SEC. 105. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE

11 CONTRIBUTIONS.

12 (a) Section 4972(c) of the Internal Revenue Code of

13 1986 is amended by adding a new paragraph (6) to read

14 as follows:

15 ‘‘(6) EXCEPTIONS.—In determining the amount

16 of nondeductible contributions for any taxable year,

17 there shall not be taken into account—

18 ‘‘(A) Any contributions that would be de19 ductible under section 404(a)(1)(D) if the plan

20 had more than 100 participants provided that

21 (i) the plan is covered under section 4021 of

22 the Employee Retirement Income Security Act

23 of 1974, and (ii) the plan is terminated under

24 section 4041(a)(2) of such Act during the plan
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1 year ending with or within the taxable year or

2 during a previous plan year.

3 ‘‘(B) Any contributions described in sec4 tion 401(m)(4)(A) or 402(g)(3)(A) that do not

5 exceed 6 percent of compensation, as defined in

6 section 404(a)(7)(A)(i), that are not deductible

7 merely because of section 404(a)(7). For pur8 poses of the preceding sentence, the deductible

9 limits under section 404(a)(7) shall first be ap10 plied to amounts contributed to a defined bene11 fit plan and then to amounts described in the

12 preceding sentence. This subparagraph shall

13 apply only if the defined benefit plan is a plan

14 with more than 100 participants, as described

15 in section 404(a)(1)(D).’’

16 (b) Section 4972(c)(6)(A) as added by this section

17 shall be effective for taxable years ending on or after the

18 date of enactment of this Act. Section 4972(c)(6)(B) as

19 added by this section shall apply for taxable years ending

20 on or after December 31, 1992.
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1 Subtitle B—Amendments to the

2 Employee Retirement Income

3 Security Act of 1974

4 SEC. 121. MINIMUM FUNDING REQUIREMENTS.

5 (a) AMENDMENTS TO ADDITIONAL FUNDING RE6 QUIREMENTS FOR SINGLE-EMPLOYER PLANS.—

7 (1) RELATIONSHIP OF ADDITIONAL FUNDING

8 REQUIREMENT TO FUNDING STANDARD ACCOUNT

9 CHARGES AND CREDITS.—

10 (A) Clause (ii) of section 302(d)(1)(A) of

11 the Employee Retirement Income Security Act

12 of 1974 (29 U.S.C. 1082(d)) is amended to

13 read as follows:

14 ‘‘(ii) the sum of the charges for such

15 plan years under subsection (b)(2), re16 duced by the sum of the credits for such

17 plan year under subparagraph (B) of sub18 section (b)(3), and’’.

19 (B) The last sentence in section 302(d)(1)

20 is amended to read as follows: ‘‘Such increase

21 shall not exceed the amount necessary to in22 crease the funded current liability percentage

23 (taking into account the expected increase in

24 current liability due to benefits accruing during

25 the plan year) to 100 percent, reduced by the
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1 amount described in clause (ii) of paragraph

2 (A).’’

3 (2) AMENDMENT TO DEFICIT REDUCTION CON4 TRIBUTION.—Paragraph (2) of section 302(d) of

5 such Act is amended—

6 (A) by striking the period and inserting ‘‘,

7 and’’ at the end of subparagraph (B); and

8 (B) by adding at the end thereof a new

9 subparagraph (C) to read as follows:

10 ‘‘(C) the expected increase in current li11 ability due to benefits accruing during the plan

12 year.’’

13 (3) INCREASE IN CURRENT LIABILITY DUE TO

14 CHANGE IN REQUIRED ASSUMPTIONS.—

15 (A) Paragraph (3) of section 302(d) of

16 such Act is amended by adding at the end

17 thereof a new subparagraph to read as follows:

18 ‘‘(D) SPECIAL RULE FOR REQUIRED

19 CHANGES IN ACTUARIAL ASSUMPTIONS.—

20 ‘‘(i) The unfunded old liability amount

21 with respect to any plan for any plan year

22 shall be increased by the amount necessary

23 to amortize the amount of additional un24 funded old liability under the plan, deter25 mined under clause (ii), in equal annual in-
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•HR 3396 SC

1 stallments over a period of 12 plan years

2 (beginning with the first plan year begin3 ning after December 31, 1994).

4 ‘‘(ii) The term ‘additional unfunded

5 old liability’ means the amount (if any) by

6 which—

7 ‘‘(I) the current liability of the

8 plan as of the beginning of the first

9 plan year beginning after December

10 31, 1994 valued using the assump11 tions required in paragraph (7)(C) of

12 this subsection as in effect for plan

13 years beginning after December 31,

14 1994, exceeds

15 ‘‘(II) the current liability of the

16 plan as of the beginning of the first

17 plan year beginning after December

18 31, 1994, valued using the prior inter19 est rate and using such mortality as20 sumptions as were used to determine

21 current liability for the first plan year

22 beginning after December 31, 1992.

23 ‘‘(iii) For purposes of clause (ii), the

24 term ‘prior interest rate’ means the rate of

25 interest that is the same percentage of the
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1 weighted average under paragraph (5) of

2 subsection (b) for the first plan year begin3 ning after December 31, 1994 as the rate

4 of interest that was used by the plan to de5 termine current liability for the first plan

6 year beginning after December 31, 1992

7 was of the weighted average under such

8 paragraph (5) of subsection (b) for such

9 first plan year beginning after December

10 31, 1992. With the exception of assump11 tions concerning the rate of interest and

12 mortality, the assumptions used for deter13 mining current liability under subclause (I)

14 of clause (ii) shall also be used to deter15 mine current liability under subclause (II)

16 of clause (ii).’’

17 (4) APPLICABLE PERCENTAGE FOR DETERMIN18 ING UNFUNDED NEW LIABILITY AMOUNT.—Clause

19 (ii) of section 302(d)(4)(C) of such Act is amended

20 by replacing ‘‘35’’ with ‘‘60’’.

21 (5) UNPREDICTABLE CONTINGENT EVENT

22 AMOUNT.—

23 (A) Paragraph (5)(A) of section 302(d) of

24 such Act is amended—
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1 (i) by inserting ‘‘greatest of’’ for

2 ‘‘greater of’’ before clause (i);

3 (ii) by striking ‘‘or’’ at the end of

4 clause (i);

5 (iii) by striking the period at the end

6 of clause (ii) and inserting ‘‘, or’’; and

7 (iv) by adding a new clause (iii) to

8 read as follows:

9 ‘‘(iii) the additional amount that

10 would be determined under paragraph

11 (4)(A) if the unpredictable contingent

12 event benefit liabilities were included in

13 unfunded new liability notwithstanding

14 paragraph (4)(B)(ii).’’

15 (B) Paragraph (5) of section 302(d) of

16 such Act is amended by adding a new subpara17 graph (E) to read as follows:

18 ‘‘(E) LIMITATION.—The present value of

19 the amounts described in subparagraph (A)

20 with respect to any one event shall not exceed

21 the unpredictable contingent event benefit li22 abilities attributable to that event.’’

23 (6) REQUIRED INTEREST RATE AND MORTALITY

24 ASSUMPTIONS FOR DETERMINING CURRENT LIABIL-
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1 ITY.—Paragraph (7)(C) of section 302(d) of such

2 Act is amended to read as follows:

3 ‘‘(C) INTEREST RATE AND MORTALITY AS4 SUMPTIONS USED.—Effective for plan years be5 ginning after December 31, 1994—

6 ‘‘(i) the rate of interest used to deter7 mine current liability under this subsection

8 shall be the rate of interest used under

9 subsection (b)(5), except the permissible

10 range under subparagraph (B)(ii) of such

11 subsection (b)(5) shall not exceed 100 per12 cent of the weighted average referred to in

13 such subparagraph, and

14 ‘‘(ii) the mortality table used to deter15 mine current liability under this subsection

16 shall be the prevailing commissioners’

17 standard table (described in section

18 807(d)(5)(A) of the Internal Revenue Code

19 of 1986) that would be used to determine

20 reserves for group annuity contracts issued

21 on the date as of which current liability is

22 determined (without regard to any other

23 subparagraph of section 807(d)(5) of the

24 Internal Revenue Code of 1986).’’
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1 (7) TRANSITION RULE.—Section 302(d) of such

2 Act is amended by adding at the end thereof a new

3 paragraph (9) to read as follows:

4 ‘‘(9) ADDITIONAL LIMITATIONS.—

5 ‘‘(A) For any applicable plan year, at the

6 election of the employer (in such manner as is

7 prescribed by the Secretary of the Treasury),

8 the increase under paragraph (1) shall not ex9 ceed the greater of—

10 ‘‘(i) the increase that would have been

11 required under the provisions of such para12 graph (1) as in effect for plan years begin13 ning before January 1, 1995 if such provi14 sions had remained in effect for the appli15 cable plan year, or

16 ‘‘(ii) the amount necessary to increase

17 the funded current liability percentage

18 (taking into account the expected increase

19 in current liability due to benefits accruing

20 during the plan year) for the applicable

21 plan year to a funded current liability per22 centage equal to the sum of the initial

23 funded current liability percentage of the

24 plan plus the applicable number of percent25 age points for such applicable plan year,
31

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1 reduced by the amount determined under

2 paragraph (1)(A)(ii).

3 ‘‘(B)(i) Except as provided in clause (iii),

4 for plans with an initial funded current liability

5 percentage that is equal to or less than 75 per6 cent, the applicable number of percentage

7 points for the applicable plan year is:

‘‘In the case of applicable

plan years beginning in:

The applicable number of percentage points is:

1995 ............................................... 3

1996 ............................................... 6

1997 ............................................... 9

1998 ............................................... 12

1999 ............................................... 15

2000 ............................................... 19

2001 ............................................... 24.

8 ‘‘(ii) For plans with an initial funded cur9 rent liability percentage that is equal to or

10 greater than 85 percent, the applicable number

11 of percentage points for the applicable plan

12 year is:

‘‘In the case of applicable

plan years beginning in:

The applicable number of percentage points is:

1995 ............................................... 2

1996 ............................................... 4

1997 ............................................... 6

1998 ............................................... 8

1999 ............................................... 10

2000 ............................................... 13

2001 ............................................... 15.

13 ‘‘(iii) For plans with an initial funded cur14 rent liability percentage that is greater than 75

15 percent but less than 85 percent, or for plans

16 with an initial funded current liability percent-
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•HR 3396 SC

1 age equal to or less than 75 percent for which,

2 as of a later applicable plan year, the sum of

3 the initial funded current liability percentage

4 and the applicable number of percentage points

5 attributable to the previous applicable plan year

6 exceed 75 percent, the applicable number of

7 percentage points for any such applicable plan

8 year is the sum of:

9 ‘‘(I) 2 percentage points;

10 ‘‘(II) the applicable number of per11 centage points attributable to the previous

12 applicable plan year (except that such

13 number for the applicable plan year begin14 ning in 1995 is zero);

15 ‘‘(III) the product of .10 multiplied by

16 the excess, if any, of (a) 85 percent over

17 (b) the sum of the initial funded current li18 ability percentage and the number under

19 subclause (II);

20 ‘‘(IV) for applicable plan years begin21 ning in 2000, 1 percentage point; and

22 ‘‘(V) for applicable plan years begin23 ning in 2001, 2 percentage points.

24 ‘‘(D) DEFINITIONS.—For purposes of this

25 paragraph:
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•HR 3396 SC

1 ‘‘(i) ‘Applicable plan year’ means a

2 plan year beginning after December 31,

3 1994, and before January 1, 2002.

4 ‘‘(ii) ‘Initial funded current liability

5 percentage’ means the funded current li6 ability percentage as of the first day of the

7 first plan year beginning after December

8 31, 1994.’’

9 (8) THREE-YEAR SOLVENCY REQUIREMENT.—

10 (A) Section 302(e) of such Act is amended

11 by adding at the end thereof a new paragraph

12 (6) to read as follows:

13 ‘‘(6) THREE-YEAR SOLVENCY REQUIREMENT.—

14 ‘‘(A) IN GENERAL.—This paragraph ap15 plies to a defined benefit plan that—

16 ‘‘(i) is required to make quarterly con17 tributions under this subsection for a plan

18 year, and

19 ‘‘(ii) has liquid assets as of the last

20 day of the last month preceding the quar21 terly installment date that are less than

22 the base amount for the quarter.

23 ‘‘(B) AMOUNT OF QUARTERLY CONTRIBU24 TION.—The amount of the required installment

25 that is due for any quarter under this sub-
34

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1 section is the greater of the amount under this

2 subsection (without regard to this paragraph)

3 or the quarterly solvency payment. Such

4 amount, when added to prior installments for

5 the plan year, shall not exceed the amount nec6 essary to increase the funded current liability

7 percentage (taking into account the expected in8 crease in current liability due to benefits accru9 ing during the plan year) to 100 percent.

10 ‘‘(C) DEFINITIONS.—For purposes of this

11 paragraph:

12 ‘‘(i) BASE AMOUNT.—‘Base amount’

13 means an amount that is the product of

14 three multiplied by the sum of the adjusted

15 disbursements from the plan for the 12

16 months ending on the last day of the last

17 month preceding the quarterly installment

18 due date. If the amount computed under

19 the previous sentence exceeds the product

20 of two multiplied by the sum of adjusted

21 disbursements for the 36 months ending

22 on the last day of the last month preceding

23 the quarterly installment due date, and an

24 enrolled actuary certifies to the Secretary

25 of the Treasury that the excess is the re-
35

•HR 3396 SC

1 sult of nonrecurring circumstances, the

2 base amount shall exclude amounts related

3 to those nonrecurring circumstances.

4 ‘‘(ii) DISBURSEMENTS FROM THE

5 PLAN.—The term ‘disbursements from the

6 plan’ means all disbursements from the

7 trust, including purchases of annuities,

8 payment of single sums and other benefit

9 payments, and administrative expenses.

10 ‘‘(iii) ADJUSTED DISBURSEMENTS.—

11 ‘Adjusted disbursements’ means the

12 amount of disbursements reduced by the

13 product of the plan’s funded current liabil14 ity percentage (as defined in subsection

15 (d)(8)(B)) for the plan year multiplied by

16 the sum of annuity purchases, single sum

17 distributions, and such other disburse18 ments as the Secretary of the Treasury

19 shall provide in regulations.

20 ‘‘(iv) LIQUID ASSETS.—‘Liquid assets’

21 means cash, marketable securities and

22 such other assets as specified by the Sec23 retary of the Treasury.

24 ‘‘(v) QUARTERLY SOLVENCY PAY25 MENT.—‘Quarterly solvency payment’
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1 means an amount of liquid assets equal to

2 the difference between the plan’s liquid as3 sets and the base amount, as of the last

4 day of a quarter.

5 ‘‘(D) EFFECT OF SOLVENCY CONTRIBU6 TION.—

7 ‘‘(i) A quarterly solvency payment

8 shall be treated in the same manner as a

9 quarterly required installment, except that

10 paragraph (2)(C) shall be applied by ap11 plying contributions to the latest outstand12 ing quarterly solvency payment. For pur13 poses of paragraph (2)(B), a quarterly sol14 vency payment that is not paid timely shall

15 not be considered paid until the earlier of

16 the last day of a later quarter for which (I)

17 the plan does not have a quarterly solvency

18 payment required, or (II) the solvency pay19 ment for such later quarter is paid timely.

20 ‘‘(ii) The Secretary of the Treasury

21 shall provide such rules as are necessary to

22 avoid duplication or omission of any fac23 tors in the determination and application

24 of this requirement.’’
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1 (B) LIMITATION ON DISTRIBUTIONS

2 OTHER THAN LIFE ANNUITIES PAID BY THE

3 PLAN.—

4 (i) Section 204 of the Employee Re5 tirement Income Security Act of 1974 (29

6 U.S.C. 1054) is amended by redesignating

7 subsection (i) as (j) and inserting a new

8 subsection (i) to read as follows:

9 ‘‘(i) Notwithstanding any other provi10 sion of this Part, the fiduciary of a pension

11 plan that is subject to the additional fund12 ing requirements of section 302(d) shall

13 not permit a prohibited payment to be

14 made from a plan during a period in which

15 a quarterly solvency payment, as defined in

16 section 302(e)(6), is outstanding. A pro17 hibited payment is any payment, in excess

18 of the monthly amount paid under a single

19 life annunity (plus any social security sup20 plements, within the meaning of section

21 204(b)(1)(G)), to a participant or bene22 ficiary whose annuity starting date, as de23 fined in section 205(h)(2), occurs during

24 the period in which there are outstanding

25 quarterly solvency payments, any purchase
38

•HR 3396 SC

1 during such period of an irrevocable com2 mitment from an insurer to pay benefits,

3 and such other payments as provided by

4 the Secretary of the Treasury. For pur5 poses of this subsection, a quarterly sol6 vency payment shall no longer be consid7 ered outstanding on the earlier of the last

8 day of a later quarter for which either (I)

9 the plan does not have a quarterly solvency

10 payment required, or (II) the solvency pay11 ment for such later quarter is paid timely.

12 Compliance with this subsection shall not

13 constitute a violation of any other provi14 sion of this Act.’’

15 (ii) Section 502 of such Act is amend16 ed by adding at the end thereof a new sub17 section (m) to read as follows:

18 ‘‘(m) In the case of a distribution to a pension plan

19 participant or beneficiary in violation of section 204(i) by

20 a plan fiduciary, the Secretary shall assess a penalty

21 against such fiduciary in an amount equal to the value

22 of the distribution. Such penalty shall not exceed $10,000

23 for each such distribution.’’

24 (9) AMENDMENT TO FULL FUNDING DEFINI25 TION.—
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1 (A) Subclause (I) of subsection

2 302(c)(7)(A)(i) of such Act is amended by in3 serting ‘‘(including the expected increase in cur4 rent liability due to benefits accruing during the

5 plan year)’’ after ‘‘current liability’’.

6 (B) Section 302(c)(7) is further amended

7 by inserting in flush language after subpara8 graph (A), a new sentence to read as follows:

9 ‘‘In any plan year in which a plan has unfunded

10 current liability under subsection (d)(8), the

11 amount in this subparagraph (A) shall not be

12 less than such unfunded current liability.’’

13 (C) Subparagraph (B) of subsection

14 302(c)(7) is amended to read as follows:

15 ‘‘(B) CURRENT LIABILITY.—For purposes

16 of subparagraph (D) and subclause (I) of sub17 paragraph (A)(i), the term ‘current liability’

18 has the meaning given such term by subsection

19 (d)(7) (without regard to the interest rate and

20 mortality assumptions required therein, and

21 without regard to subparagraph (D) thereof).’’

22 (b) EFFECTIVE DATE.—The amendments made by

23 this section shall be effective for plan years beginning after

24 December 31, 1994.
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•HR 3396 SC

1 SEC. 122. LIMITATION ON CHANGES IN CURRENT LIABILITY

2 ASSUMPTIONS.

3 (a) Section 302(c) of the Employee Retirement In4 come Security Act of 1974 (29 U.S.C. 1082(c)) is amend5 ed by redesignating paragraph (5) as subparagraph

6 (5)(A), and adding a new subparagraph (5)(B) to read

7 as follows:

8 ‘‘(B)(i) CHANGE IN ASSUMPTIONS RE9 QUIRES APPROVAL.—If the actuarial assump10 tions (other than the assumptions described in

11 subsection (d)(7)(C)) used to determine the

12 current liability for a plan are changed, the new

13 actuarial assumptions shall become the actuar14 ial assumptions used to determine current li15 ability for the plan only if the change is ap16 proved by the Secretary of the Treasury.

17 ‘‘(ii) Clause (i) shall not apply unless—

18 ‘‘(I) the plan is subject to the require19 ments of subsection (d);

20 ‘‘(II) the requirements of section

21 4043(b)(1) are met; and

22 ‘‘(III) the change in assumptions (de23 termined after taking into account any

24 changes in interest rate and mortality

25 table) results in a decrease in the un26 funded current liability of the plan for the
41

•HR 3396 SC

1 current plan year that is $50,000,000 or

2 greater, or that is $5,000,000 or greater

3 and that is 5 percent or more of the cur4 rent liability of the plan before such

5 change.’’

6 (b) EFFECTIVE DATE.—The amendments made by

7 this section shall be effective with respect to assumption

8 changes in plan years beginning after October 28, 1993.

9 Assumption changes made in plan years beginning after

10 December 31, 1992 that would have required approval

11 under this amended section had it been in effect at the

12 time of such changes, shall not be effective for plan years

13 beginning after December 31, 1994 unless approved by

14 the Secretary of the Treasury.

15 SEC. 123. RECOGNITION OF ALREADY BARGAINED

16 CHANGES IN LIABILITY.

17 (a) Section 302(c) of the Employee Retirement In18 come Security Act of 1974 (29 U.S.C. 1082(c)) is amend19 ed by adding a new paragraph (12) at the end thereof

20 to read as follows:

21 ‘‘(12) PLAN LIABILITIES ARISING FROM

22 AMENDMENTS EFFECTIVE IN THE FUTURE.—A col23 lectively bargained plan described in section 413(a)

24 of the Internal Revenue Code of 1986 shall antici25 pate benefit increases scheduled to take effect during
42

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1 the term of the collective bargaining agreement ap2 plicable to the plan at the same time and in the

3 same manner as if the plan amendment implement4 ing the provision of the collective bargaining agree5 ment were adopted by the parties when the parties

6 entered into the collective bargaining agreement.’’

7 (b) EFFECTIVE DATE.—The amendments made by

8 this section shall be effective for plan years beginning after

9 December 31, 1994 with respect to collective bargaining

10 agreements in effect on or after January 1, 1995.

11 SEC. 124. MODIFICATION OF QUARTERLY CONTRIBUTION

12 REQUIREMENT.

13 (a) Section 302(e) of the Employee Retirement In14 come Security Act of 1974 (29 U.S.C. 1082(e)), as

15 amended by section 121 of this Act, is further amended

16 by adding at the end thereof a new paragraph (7) to read

17 as follows:

18 ‘‘(7) APPLICABILITY OF THIS SUBSECTION.—

19 This subsection applies only with respect to a plan

20 year for which the funded current liability percent21 age of such plan (within the meaning of subsection

22 (d)(8)(B)) for the preceding plan year is less than

23 100 percent.’’
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•HR 3396 SC

1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall be effective for plan years beginning after

3 the date of enactment of this Act.

4 TITLE II—AMENDMENTS RELAT5 ED TO TITLE IV OF THE EM6 PLOYEE RETIREMENT IN7 COME SECURITY ACT OF 1974

8 SEC. 201. REPORTABLE EVENTS.

9 (a) RESPONSIBILITY FOR REPORTABLE EVENTS RE10 PORTING.—Section 4043(a) of the Employee Retirement

11 Income Security Act of 1974 (29 U.S.C. 1343(a)) is

12 amended—

13 (1) by inserting ‘‘, unless a notice has already

14 been provided with respect to such event’’ before the

15 period at the end of the first sentence;

16 (2) by inserting ‘‘or the contributing sponsor’’

17 before ‘‘knows or has reason to know’’; and

18 (3) by striking the last sentence.

19 (b) NOTIFICATION THAT EVENT IS ABOUT TO

20 OCCUR.—Section 4043 of such Act is amended by redesig21 nating subsections (b), (c) and (d) as (c), (d) and (e), re22 spectively, and by inserting a new subsection (b) to read

23 as follows:

24 ‘‘(b)(1) The requirement of this subsection shall be

25 applicable to a contributing sponsor only if the aggregate
44

•HR 3396 SC

1 unfunded vested benefits at the close of the preceding plan

2 year (as determined under section 4006(a)(3)(E)(iii)) of

3 plans maintained by such sponsor and the members of

4 such sponsor’s controlled group that are covered by this

5 title (taking into account only those plans with unfunded

6 vested benefits) exceed $50,000,000.

7 ‘‘(2) No later than 30 days prior to the effective date

8 of an event described in paragraphs (9) and (13) of sub9 section (c) of this section, a contributing sponsor described

10 in paragraph (1) of this subsection shall notify the cor11 poration that the event is about to occur.

12 ‘‘(3) The corporation is authorized to waive the re13 quirement of this subsection with respect to any or all re14 portable events with respect to any contributing sponsor.’’

15 (c) NEW REPORTABLE EVENTS.—Subsection

16 4043(c), as redesignated, is amended—

17 (1) by striking the ‘‘or’’ at the end of para18 graph (8); and

19 (2) by striking paragraph (9) and inserting,

20 after paragraph (8), new paragraphs (9) through

21 (13) to read as follows:

22 ‘‘(9) when, as a result of an event, a person

23 ceases to be a member of the controlled group;

24 ‘‘(10) when a contributing sponsor or a member

25 of a contributing sponsor’s controlled group
45

•HR 3396 SC

1 liquidates in a case under title 11, United States

2 Code, or under any similar Federal law or law of a

3 State or political subdivision of a State;

4 ‘‘(11) when a contributing sponsor or a member

5 of a contributing sponsor’s controlled group declares

6 an extraordinary dividend (as defined in section

7 1059(c) of the Internal Revenue Code of 1986) or

8 redeems, in any 12-month period, an aggregate of

9 10 percent or more of the total combined voting

10 power of all classes of stock entitled to vote, or an

11 aggregate of 10 percent of more of the total value

12 of shares of all classes of stock, of a contributing

13 sponsor and all members of its controlled group;

14 ‘‘(12) when, in any 12-month period, an aggre15 gate of 3 percent or more of the benefit liabilities of

16 a plan covered by this title and maintained by a con17 tributing sponsor or a member of its controlled

18 group are transferred to a person that is not a mem19 ber of the controlled group or to a plan or plans

20 maintained by a person or persons that are not such

21 contributing sponsor or a member of its controlled

22 group; or

23 ‘‘(13) when any other event occurs that may be

24 indicative of a need to terminate the plan and that

25 is prescribed by the corporation in regulations.’’
46

•HR 3396 SC

1 (d) DISCLOSURE EXEMPTION.—Section 4043 of such

2 Act is amended by adding at the end a new subsection

3 (f) to read as follows:

4 ‘‘(f) Any information or documentary material sub5 mitted to the corporation pursuant to subsection (c) or

6 subsection 4050(c)(2) shall be exempt from disclosure

7 under section 552 of title 5, United States Code, and no

8 such information or documentary material may be made

9 public, except as may be relevant to any administrative

10 or judicial action or proceeding. Nothing in this section

11 is intended to prevent disclosure to either body of Con12 gress or to any duly authorized committee or subcommit13 tee of the Congress.’’

14 (e) TECHNICAL AND CONFORMING AMENDMENTS.—

15 Subsection (a) of section 4043 of such Act, and sub16 sections (d) and (e) of such section 4043, as redesignated

17 by this Act, are amended by replacing ‘‘subsection (b)’’

18 each time it appears with ‘‘subsection (c)’’. Section

19 4042(a)(3) of such Act is amended by replacing

20 ‘‘4043(b)(7)’’ with ‘‘4043(c)(7)’’.

21 (f) EFFECTIVE DATE.—The amendments made by

22 this section shall be effective for events occurring 60 days

23 or more after the date of enactment of this Act.
47

•HR 3396 SC

1 SEC. 202. ALTERNATIVE TO INVOLUNTARY TERMINATION.

2 (a) GENERAL RULE.—Subtitle C of title IV of the

3 Employee Retirement Income Security Act of 1974 is

4 amended by adding at the end thereof a new section 4050

5 to read as follows:

6 ‘‘SEC. 4050. JUDICIAL RELIEF OTHER THAN INVOLUNTARY

7 TERMINATION.

8 ‘‘(a)(1) Whenever the corporation determines (with9 out regard to the potential availability of relief under this

10 section) that, upon the occurrence of an event described

11 in section 4043(c) (9) through (13), the possible long-run

12 loss of the corporation with respect to a plan may reason13 ably be expected to increase unreasonably if the plan is

14 not terminated, the corporation may, in its discretion, in15 stitute proceedings under this section as an alternative to

16 instituting proceedings under section 4042 to terminate

17 the plan.

18 ‘‘(2) In the case of an event described in section

19 4043(c) (9) or (13), this section shall apply only if, imme20 diately after the effective date of the event, the total reve21 nues, the total operating income, or the total assets of a

22 contributing sponsor and all members of its controlled

23 group would be less than 90 percent of the total revenues,

24 the total operating income, or the total assets, respec25 tively, of a contributing sponsor and all members of its

26 controlled group immediately before the effective date of
48

•HR 3396 SC

1 the event. For purposes of this paragraph, all events oc2 curring in any 12-month period shall be treated as a single

3 event.

4 ‘‘(b) Whenever the corporation makes a determina5 tion under subsection (a), it may, upon notice to a contrib6 uting sponsor, apply to the appropriate United States dis7 trict court for such legal or equitable relief as the corpora8 tion deems appropriate and consistent with its duties

9 under this title. The court shall consider the interests of

10 both the participants and the corporation, and shall grant

11 such relief, if any, as it determines is necessary to protect

12 those interests without interfering unreasonably with the

13 business of the contributing sponsor or members of its

14 controlled group.

15 ‘‘(c)(1) In any case in which the corporation is pro16 vided with a notice required by subsection 4043(b) within

17 the time specified in that subsection, the corporation may

18 bring an action under this section no later than 30 days

19 after the date such notice is received. Notwithstanding the

20 preceding sentence, the corporation may, no later than 30

21 days after the date such notice is received, require the sub22 mission of additional information or documentary mate23 rial, in which case an action under this section may be

24 brought no later than 20 days after the corporation re-
49

•HR 3396 SC

1 ceives all the information and documentary material it had

2 required.

3 ‘‘(2) A person who has provided a notice as described

4 in paragraph (1) may elect, upon further notice to the cor5 poration, to proceed with an event prior to the expiration

6 of the time periods described in paragraph (1). In that

7 event, an action under this section may be brought at any

8 time within the period specified in subsection 4003(e)(6).

9 ‘‘(3) In any case in which the corporation is not pro10 vided with a notice required by subsection 4043(b) by the

11 time specified in that subsection, where a person fails or

12 refuses to provide the additional information or documen13 tary material required by the corporation under paragraph

14 (1), or where a person proceeds with the event without

15 providing the corporation with the further notice required

16 under paragraph (2), an action under this section may be

17 brought at any time within the time period specified in

18 subsection 4003(e)(6).

19 ‘‘(4) Except as provided in paragraph (1), (2) or (3),

20 an action under this section may not be brought after the

21 effective date of the event giving rise to the transaction.

22 ‘‘(5) For purposes of applying subsection 4003(e)(6)

23 to paragraphs (2) and (3), a cause of action shall be

24 deemed to arise on the effective date of the event.
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1 ‘‘(d) Nothing in this section shall limit the authority

2 of the corporation to initiate proceedings to terminate a

3 plan under section 4042, or to initiate proceedings or to

4 seek relief under any other provision of this title or any

5 other law.’’

6 (b) CONFORMING AMENDMENT.—Section 4042(a) of

7 such Act (29 U.S.C. 1342(a)) is amended by inserting,

8 after ‘‘determines’’ the first time it appears, the following:

9 ‘‘(without regard to the potential availability of relief

10 under section 4050)’’.

11 (c) CLERICAL AMENDMENT.—The table of contents

12 contained in section 1 of such Act is amended by inserting

13 after the item relating to section 4048 the following new

14 item:

‘‘Sec. 4050. Judicial relief other than involuntary termination.’’

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

16 this section shall be effective for events occurring on or

17 after 60 days after the enactment of this Act.

18 SEC. 203. CERTAIN INFORMATION REQUIRED TO BE FUR19 NISHED TO PBGC.

20 (a) GENERAL RULE.—Subtitle A of title IV of the

21 Employee Retirement Income Security Act of 1974 is

22 amended by adding at the end thereof a new section 4010

23 to read as follows:
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1 ‘‘SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMA2 TION.

3 ‘‘(a) Each person described in subsection (b) shall

4 provide the corporation annually, on or before a date spec5 ified by the corporation in regulations, with—

6 ‘‘(1) such records, documents, or other informa7 tion that the corporation specifies in regulations as

8 necessary to determine the liabilities and assets of

9 plans covered by this title; and

10 ‘‘(2) copies of such person’s audited (or, if un11 available, unaudited) financial statements, and such

12 other financial information as the corporation may

13 prescribe in regulations.

14 ‘‘(b) The persons covered by subsection (a) are each

15 contributing sponsor, and each member of a contributing

16 sponsor’s controlled group, of a single-employer plan cov17 ered by this title, where—

18 ‘‘(1) the aggregate unfunded vested benefits at

19 the end of the preceding plan year (as determined

20 under section 4006(a)(3)(E)(iii)) of plans main21 tained by the contributing sponsor and the members

22 of its controlled group (taking into account only

23 those plans of the contributing sponsor and its con24 trolled group with unfunded vested benefits) exceed

25 $50,000,000; or
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1 ‘‘(2) the conditions for imposition of a lien de2 scribed in section 302(f)(1)(A) and (B) or section

3 412(n)(1)(A) and (B) of the Internal Revenue Code

4 of 1986 have been met with respect to any such

5 plan; or

6 ‘‘(3) minimum funding waivers in excess of

7 $1,000,000 have been granted with respect to any

8 such plan, and any portion thereof is still outstand9 ing.

10 ‘‘(c) Any information or documentary material sub11 mitted to the corporation pursuant to this section shall

12 be exempt from disclosure under section 552 of title 5,

13 United States Code, and no such information or documen14 tary material may be made public, except as may be rel15 evant to any administrative or judicial action or proceed16 ing. Nothing in this section is intended to prevent disclo17 sure to either body of Congress or to any duly authorized

18 committee or subcommittee of the Congress.’’

19 (b) CLERICAL AMENDMENT.—The table of contents

20 contained in section 1 of such Act is amended by inserting

21 after the item relating to section 4009 the following new

22 item:

‘‘Sec. 4010. Authority to require certain information.’’

23 (c) EFFECTIVE DATE.—The amendments made by

24 this section shall be effective on the date of enactment of

25 this Act.
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1 SEC. 204. LIABILITY UPON LIQUIDATION OF CONTRIBUTING

2 SPONSOR OR CONTROLLED GROUP MEMBER

3 WHERE PLAN REMAINS ONGOING.

4 (a) IN GENERAL.—Section 4062 of the Employee Re5 tirement Income Security Act of 1974 (29 U.S.C. 1362)

6 is amended by adding at the end thereof a new subsection

7 (f) to read as follows:

8 ‘‘(f) LIABILITY ON LIQUIDATION OF CONTRIBUTING

9 SPONSOR OR CONTROLLED GROUP MEMBER.—

10 ‘‘(1) IN GENERAL.—In any case in which all or

11 substantially all of the assets of a person who is a

12 contributing sponsor of a single-employer plan, or a

13 member of a controlled group of a contributing

14 sponsor of a single-employer plan, are liquidated in

15 a case under title 11, United States Code, or under

16 any similar Federal law or law of a State or political

17 subdivision of a State, but the plan is not termi18 nated, such person shall be deemed liable under sub19 section (b) as if the plan had terminated under sec20 tion 4041(c) in the course of such liquidation and as

21 if the termination date were the date determined by

22 the corporation as the date on which the liquidation

23 was initiated.

24 ‘‘(2) APPLICABILITY OF OTHER PROVISIONS.—

25 The liability under this subsection shall be joint and

26 several only among the members of the controlled
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1 group (including, where applicable, the contributing

2 sponsor) who are liquidating as described in para3 graph (1). Subject to that exception, any provision

4 of this Act or any other provision of law that applies

5 to liability under this section upon termination of a

6 plan shall apply in the same manner and to the

7 same extent to the liability established under this

8 subsection. For purposes of this paragraph, the date

9 referred to in paragraph (1) shall be deemed the ter10 mination date.

11 ‘‘(3) LIABILITY OWED TO PLAN; TRANSFER OF

12 LIABILITY PAYMENTS TO THE ONGOING PLAN

13 WHERE COLLECTED BY THE CORPORATION.—The li14 ability established under this subsection shall be

15 owed to the plan, and may be collected by either the

16 plan or the corporation. The corporation shall pay to

17 the plan any amounts collected by the corporation in

18 satisfaction of the liability established under this

19 subsection in connection with such plan.

20 ‘‘(4) REGULATIONS.—The corporation may pre21 scribe regulations under this subsection, including—

22 ‘‘(A) rules governing—

23 ‘‘(i) the determination of whether and

24 when a liquidation referred to in this sub25 section has occurred, and
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1 ‘‘(ii) the assignment of the plan’s or

2 corporation’s claim to liability payments

3 under this subsection to other members of

4 the controlled group as a means of collect5 ing such payments, subject to the transfer

6 of such payments to the plan, and

7 ‘‘(B) rules providing alternative arrange8 ments for making liability payments under this

9 subsection.’’

10 (b) CONFORMING AMENDMENT.—Section 4062(a) of

11 such Act is amended—

12 (1) by striking ‘‘and’’ after ‘‘subsection (b),’’;

13 and

14 (2) by striking the period after ‘‘subsection (c)’’

15 and inserting ’’, and’’; and

16 (3) by adding a new paragraph (3) at the end

17 thereof to read as follows:

18 ‘‘(3) liability to the plan, to the extent provided

19 in subsection (f).’’

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall be effective for liquidations initiated on

22 or after the date of enactment of this Act.
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1 SEC. 205. ENFORCEMENT OF MINIMUM FUNDING REQUIRE2 MENTS.

3 (a) IN GENERAL.—Paragraph (1) of section 4003(e)

4 of the Employee Retirement Income Security Act of 1974

5 (29 U.S.C. 1303(e)(1)) is amended by inserting ‘‘(i)’’ after

6 ‘‘enforce’’ and by striking the period after ‘‘title’’ and in7 serting ‘‘, and (ii) in the case of a plan covered under this

8 title (other than a multiemployer plan) and for which the

9 conditions for imposition of a lien described in section

10 302(f)(1)(A) and (B) or section 412(n)(1)(A) and (B) of

11 the Internal Revenue Code of 1986 have been met, section

12 302 of this Act and section 412 of the Internal Revenue

13 Code of 1986.’’

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

15 this section shall be effective for installments and other

16 payments required under section 302 of the Employee Re17 tirement Income Security Act of 1974 or section 412 of

18 the Internal Revenue Code of 1986 that become due on

19 or after the date of the enactment of this Act.

20 SEC. 206. REMEDIES FOR NONCOMPLIANCE WITH REQUIRE21 MENTS FOR STANDARD TERMINATION.

22 (a) NOTICE OF NONCOMPLIANCE.—Section

23 4041(b)(2)(C)(i) of the Employee Retirement Income Se24 curity Act of 1974 (29 U.S.C. 1341(b)(2)(C)(i)) is amend25 ed—

26 (1) by revising subclause (I) to read as follows:
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1 ‘‘(I) it determines, based on the

2 notice sent under paragraph (2)(A) of

3 subsection (b), that there is reason to

4 believe that the plan is not sufficient

5 for benefit liabilities, or’’;

6 (2) by striking the period that follows subclause

7 (II), and inserting ‘‘, or’’; and

8 (3) by adding a new subclause (III) to read as

9 follows:

10 ‘‘(III) it determines that any

11 other requirement of subparagraph

12 (A) or (B) of this paragraph or of

13 subsection (a)(2) has not been met,

14 unless it further determines that the

15 issuance of such notice would be in16 consistent with the interests of par17 ticipants and beneficiaries.’’

18 (b) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to any plan termination under sec20 tion 4041(b) of the Employee Retirement Income Security

21 Act of 1974 with respect to which the Pension Benefit

22 Guaranty Corporation has not, as of the date of enactment

23 of this Act, issued a notice of noncompliance that has be24 come final, or otherwise issued a final determination that

25 the plan termination is nullified.
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1 SEC. 207. PROHIBITION ON BENEFIT INCREASES WHERE

2 PLAN SPONSOR IS IN BANKRUPTCY.

3 (a) Section 204 of the Employee Retirement Income

4 Security Act of 1974 (29 U.S.C. 1054), as amended by

5 section 121(b) of this Act, is further amended by redesig6 nating subsection (j) as (k) and inserting a new subsection

7 (j) to read as follows:

8 ‘‘(j)(1) In the case of a plan described in paragraph

9 (3) which is maintained by an employer that is a debtor

10 in a case under title 11, United States Code, or similar

11 Federal or State law, no amendment of the plan which

12 increases the liabilities of the plan by reason of any in13 crease in benefits, any change in the accrual of benefits,

14 or any change in the rate at which benefits become non15 forfeitable under the plan, with respect to employees of

16 the debtor, shall be effective prior to the effective date of

17 such employer’s plan of reorganization.

18 ‘‘(2) Paragraph (1) shall not apply to any plan

19 amendment that—

20 ‘‘(A) the Secretary of Treasury determines to

21 be reasonable and that provides for only de minimis

22 increases in the liabilities of the plan with respect to

23 employees of the debtor,

24 ‘‘(B) only repeals an amendment described in

25 section 302(c)(8),
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1 ‘‘(C) is required as a condition of qualification

2 under part I of subchapter D, of chapter 1, of the

3 Internal Revenue Code of 1986, or

4 ‘‘(D) was adopted prior to, or pursuant to a col5 lective bargaining agreement entered into prior to,

6 the date on which the employer became a debtor in

7 a case under title 11, United States Code, or similar

8 Federal or State law.

9 ‘‘(3) This subsection shall apply only to plans (other

10 than multiemployer plans) covered under section 4021 of

11 this Act for which the funded current liability percentage

12 (within the meaning of section 302(d)(8)(B) of this Act)

13 is less than 100 percent after taking into account the ef14 fect of the amendment.

15 ‘‘(4) For purposes of this subsection, ‘employer’ has

16 the meaning set forth in section 302(c)(11)(A), without

17 regard to section 302(c)(11)(B).’’

18 (b) Section 410(a) of the Internal Revenue Code of

19 1986, as amended by section 101(b) of this Act, is further

20 amended by adding at the end thereof a new paragraph

21 (33) to read as follows:

22 ‘‘(33) PROHIBITION ON BENEFIT INCREASES

23 WHILE SPONSOR IS IN BANKRUPTCY.—

24 ‘‘(A) IN GENERAL.—A trust shall not con25 stitute a qualified trust under this section if the
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1 plan of which such trust is a part is amended

2 while the employer is a debtor in a case under

3 title 11, United States Code, or similar federal

4 or state law, where such amendment increases

5 liabilities of the plan by reason of any increase

6 in benefits, any change in the accrual of bene7 fits, or any change in the rate at which benefits

8 become nonforfeitable under the plan, with re9 spect to employees of the debtor, and is effec10 tive prior to the effective date of such employ11 er’s plan of reorganization.

12 ‘‘(B) EXCEPTIONS.—This paragraph shall

13 not apply to any plan amendment that—

14 ‘‘(i) the Secretary determines to be

15 reasonable and that provides for only de

16 minimis increases in the liabilities of the

17 plan with respect to employees of the

18 debtor,

19 ‘‘(ii) only repeals an amendment de20 scribed in subsection 412(c)(8),

21 ‘‘(iii) is required as a condition of

22 qualification under this part, or

23 ‘‘(iv) was adopted prior to the date on

24 which the employer became a debtor in a
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1 case under title 11, United States Code, or

2 similar federal or state law.

3 ‘‘(C) PLANS TO WHICH THIS PARAGRAPH

4 APPLIES.—This paragraph shall apply only to

5 plans (other than multiemployer plans) covered

6 under section 4021 of the Employee Retirement

7 Income Security Act of 1974 for which the

8 funded current liability percentage (within the

9 meaning of section 412(l)(8)(B)) is less than

10 100 percent after taking into account the effect

11 of the amendment.

12 ‘‘(D) DEFINITIONS.—For purposes of this

13 paragraph, ‘employer’ has the meaning set

14 forth in section 412(c)(11)(A), without regard

15 to section 412(c)(11)(B).’’

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall be effective with respect to plan amend18 ments adopted on or after the date of enactment of this

19 Act.

20 SEC. 208. SUBSTANTIAL OWNER BENEFITS.

21 (a) MODIFICATION OF PHASE IN OF GUARANTEE.—

22 Section 4022(b)(5) is amended by revising subparagraphs

23 (B) and (C) to read as follows:

24 ‘‘(B) For purposes of this title, the term

25 ‘majority owner’ has the same meaning as the
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1 term ‘substantial owner’, except that ‘50 per2 cent or more’ shall be substituted for ‘more

3 than 10 percent’ wherever such phrase appears

4 in subparagraph (A) of this paragraph.

5 ‘‘(C) In the case of a participant who is a

6 majority owner, the amount of benefits guaran7 teed under this section shall not exceed the

8 product of—

9 ‘‘(i) a fraction (not to exceed 1) the

10 numerator of which is the number of years

11 from the later of the effective date or the

12 adoption date of the plan, and the denomi13 nator of which is 30, and

14 ‘‘(ii) the amount of the majority own15 er’s monthly benefits guaranteed under

16 subsection (a) (as limited by paragraph (3)

17 of this subsection).’’

18 (b) MODIFICATION OF ALLOCATION OF ASSETS.—

19 (1) Section 4044(a)(4)(B) is revised by adding

20 ‘‘(C)’’ after ‘‘section 4022(b)(5)’’.

21 (2) Section 4044(b) is revised—

22 (A) by adding ‘‘(4),’’ before ‘‘(5)’’ in para23 graph (2), and

24 (B) by renumbering paragraphs (3)

25 through (6) as (4) through (7), respectively,
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1 and inserting a new paragraph (3) to read as

2 follows:

3 ‘‘(3) If assets available for allocation under

4 paragraph (4) of subsection (a) are insufficient to

5 satisfy in full the benefits of all individuals who are

6 described in that paragraph, the assets shall be allo7 cated first to benefits described in subparagraph (A)

8 of that paragraph. Any remaining assets shall then

9 be allocated to subparagraph (B). If assets allocated

10 to subparagraph (B) are insufficient to satisfy in full

11 the benefits in that subparagraph, the assets shall

12 be allocated pro rata among individuals on the basis

13 of the present value (as of the termination date) of

14 their respective benefits described in that subpara15 graph.’’

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall be effective for plan terminations under

18 section 4041(c) with respect to which notices of intent to

19 terminate are provided under section 4041(a)(2), or under

20 section 4042 with respect to which proceedings are insti21 tuted by the corporation, on or after the date of enactment

22 of this Act.

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

24 (a) Subparagraph (E) of section 4006(a)(3) of the

25 Employee Retirement Income Security Act of 1974 is
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1 amended by deleting clause (iv) and redesignating clause

2 (v) as clause (iv).

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

4 this section shall be effective on the date of enactment of

5 this Act, except that, for plan years beginning on or after

6 July 1, 1994 and before July 1, 1996, the additional pre7 mium payable with respect to any participant by reason

8 of this amendment shall not exceed the sum of—

9 (1) $53, and

10 (2) the excess (if any) of the amount deter11 mined under clause (ii) of section 4006(a)(3)(E) of

12 the Employee Retirement Income Security Act of

13 1974 over $53 multiplied by the applicable percent14 age. For purposes of this clause, the applicable per15 centage shall be as follows:

Plan year beginning: The applicable

percentage is: on or after but before

July 1, 1994 ....................... July 1, 1995 ....................... 20

July 1, 1995 ....................... July 1, 1996 ....................... 60

16 TITLE III—PARTICIPANT

17 SERVICES

18 SEC. 301. DISCLOSURE TO PARTICIPANTS.

19 (a) PARTICIPANT NOTICE REQUIREMENT.—Subtitle

20 A of Title IV of the Employee Retirement Income Security

21 Act of 1974, as amended by section 203 of this Act, is
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1 further amended by adding at the end thereof a new sec2 tion 4011 to read as follows:

3 ‘‘SEC. 4011. NOTICE TO PARTICIPANTS.

4 ‘‘The plan administrator of a plan subject to the ad5 ditional premium under section 4006(a)(3)(E) shall pro6 vide, in a form and manner and at such time as prescribed

7 in regulations of the corporation, notice to plan partici8 pants and beneficiaries of the plan’s funding status and

9 the limits on the corporation’s guaranty should the plan

10 terminate while underfunded. Such notice shall be written

11 in a manner so as to be understood by the average plan

12 participant.’’

13 (b) CLERICAL AMENDMENT.—The table of contents

14 contained in section 1 of such Act is amended by inserting

15 after the item relating to section 4010 (as added by sec16 tion 203 of this Act) the following new item:

‘‘Sec. 4011. Notice to participants.’’

17 (c) EFFECTIVE DATE.—The amendment made by

18 this section shall be effective for plan years beginning after

19 the date of enactment of this Act.

20 SEC. 302. MISSING PARTICIPANTS.

21 (a) Subtitle B of Title IV of the Employee Retirement

22 Income Security Act of 1974 is amended by adding a new

23 section 4031 at the end thereof to read as follows:

24 ‘‘SEC. 4031. MISSING PARTICIPANTS.

25 ‘‘(a) GENERAL RULE.—
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1 ‘‘(1) PAYMENT TO THE CORPORATION.—A plan

2 administrator satisfies section 4041(b)(3)(A) in the

3 case of a missing participant only if the plan admin4 istrator—

5 ‘‘(A) transfers the participant’s designated

6 benefit to the corporation or purchases an irrev7 ocable commitment from an insurer in accord8 ance with clause (i) of section 4041(b)(3)(A),

9 and

10 ‘‘(B) provides the corporation such infor11 mation and certifications with respect to such

12 designated benefits or irrevocable commitments

13 as the corporation shall specify.

14 ‘‘(2) TREATMENT OF TRANSFERRED ASSETS.—

15 A transfer to the PBGC under this section shall be

16 treated as a transfer of assets from a terminated

17 plan to the corporation as trustee, and shall be held

18 with assets of terminated plans for which the cor19 poration is trustee under section 4042, subject to

20 the rules set out in that section.

21 ‘‘(3) PAYMENT BY THE CORPORATION.—After a

22 missing participant whose designated benefit was

23 transferred to the corporation is located—

24 ‘‘(A) if the plan could have distributed the

25 benefit of a missing participant in a single sum
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1 without participant or spousal consent under

2 section 205(g), the corporation shall pay the

3 participant or beneficiary a single sum benefit

4 equal to the designated benefit paid the cor5 poration plus interest as specified by the cor6 poration.

7 ‘‘(B) in the case of any other missing par8 ticipant, the corporation shall pay a benefit

9 based on the designated benefit and the as10 sumptions prescribed by the corporation at the

11 time that the corporation received the des12 ignated benefit. The corporation shall make

13 such payments available in the same forms and

14 at the same times as a guaranteed benefit

15 under section 4022 would be available to be

16 paid, except that the corporation may make a

17 benefit available in the form of a single sum if

18 the plan provided a single sum benefit (other

19 than a single sum described in subsection

20 (b)(2)(A)).

21 ‘‘(b) DEFINITIONS.—

22 ‘‘(1) A ‘missing participant’ means a partici23 pant or beneficiary under a terminating plan whom

24 the plan administrator cannot locate after a diligent

25 search.
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1 ‘‘(2) A ‘designated benefit’ means the single

2 sum benefit the participant would receive—

3 ‘‘(A) under the plan’s assumptions, in the

4 case of a distribution that can be made without

5 participant or spousal consent under section

6 205(g);

7 ‘‘(B) under the assumptions of the cor8 poration in effect on the date that the des9 ignated benefit is transferred to the corpora10 tion, in the case of a plan that does not pay any

11 single sums other than those described in sub12 paragraph (A); or

13 ‘‘(C) under the assumptions of the cor14 poration or of the plan, whichever provides the

15 higher single sum, in the case of a plan that

16 does pay a single sum other than those de17 scribed in subparagraph (A).

18 ‘‘(c) REGULATORY AUTHORITY.—The corporation

19 shall prescribe such regulations as are necessary to carry

20 out the purposes of this section, including rules as to what

21 will be considered a diligent search, the amount payable

22 to the corporation, and the amount to be paid by the cor23 poration.’’

24 (b) CONFORMING TITLE IV AMENDMENTS.—
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1 (1) AMENDMENT TO SECTION 4003.—Section

2 4003(a) of such Act is amended by adding ‘‘and

3 whether section 4031(a) has been satisfied’’ at the

4 end of the second sentence.

5 (2) AMENDMENT TO SECTION 4005.—Section

6 4005(b)(2)(A) of such Act is amended by adding ‘‘or

7 benefits payable under section 4031’’ after ‘‘section

8 4022A’’.

9 (3) AMENDMENT TO SECTION 4041.—Section

10 4041(b)(3)(A)(ii) of such Act is amended by adding

11 a sentence at the end thereof to read as follows: ‘‘A

12 transfer of assets to the corporation in accordance

13 with section 4031 on behalf of a missing participant

14 shall satisfy this subparagraph with respect to such

15 participant.’’

16 (c) CONFORMING ERISA AMENDMENTS.—

17 (1) The table of contents contained in section

18 1 of the Employee Retirement Income Security Act

19 of 1974 is amended by inserting after the item relat20 ed to section 4030 the following new item:

‘‘Sec. 4031. Missing Participants.’’

21 (2) Section 206 of such Act is amended by add22 ing at the end thereof a new subsection (e) to read

23 as follows:

24 ‘‘(e) MISSING PARTICIPANTS IN TERMINATED

25 PLANS.—In the case of a plan covered by title IV of the
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1 Employee Retirement Income Security Act of 1974, the

2 plan shall provide that, upon termination of the plan, ben3 efits of missing participants shall be treated in accordance

4 with section 4031 of such Act.’’

5 ‘‘(d) CONFORMING INTERNAL REVENUE CODE

6 AMENDMENTS.—Section 401(a) of the Internal Revenue

7 Code of 1986, as amended by section 207 of this Act, is

8 further amended by adding at the end thereof a new para9 graph (34) to read as follows:

10 ‘‘(34) In the case of a plan covered by title IV

11 of the Employee Retirement Income Security Act of

12 1974, a trust forming part of such plan shall not be

13 treated as failing to constitute a qualified trust

14 under this section merely because the pension plan

15 of which such trust is a part, upon its termination,

16 transfers benefits of missing participants to the Pen17 sion Benefit Guaranty Corporation in accordance

18 with section 4031 of such Act.’’

19 (e) EFFECTIVE DATE.—The provisions of this section

20 shall be effective with respect to distributions that occur

21 in plan years commencing after final regulations imple22 menting these provisions are adopted by the Pension Ben23 efit Guaranty Corporation.
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1 SEC. 303. MODIFICATION OF MAXIMUM GUARANTEE FOR

2 DISABILITY BENEFITS.

3 (a) Section 4022(b)(3) of the Employee Retirement

4 Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is

5 amended by adding at the end thereof two new sentences

6 to read as follows: ‘‘The maximum guaranteed monthly

7 benefit shall not be reduced solely on account of the age

8 of a participant in the case of a benefit payable by reason

9 of disability, provided that the participant satisfies the

10 definition of disability under titles II and XVI of the So11 cial Security Act, as amended, and the regulations there12 under. If a benefit payable by reason of disability is con13 verted to an early or normal retirement benefit for reasons

14 other than a change in the health of the participant, such

15 early or normal retirement benefit shall be treated as a

16 continuation of the benefit payable by reason of disability

17 and this subparagraph shall continue to apply.’’

18 (b) EFFECTIVE DATE.—The amendments made by

19 this section shall be effective for plan terminations under

20 section 4041(c) with respect to which notices of intent to

21 terminate are provided under section 4041(a)(2), or under

22 section 4042 with respect to which proceedings are insti23 tuted by the corporation, on or after the date of enactment

24 of this Act.
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1 TITLE IV—MISCELLANEOUS

2 AMENDMENTS

3 SEC. 401. ERISA CITATION.

4 (a) Section 404(g)(4) of the Internal Revenue Code

5 of 1986 is amended by striking ‘‘the Single Employer Pen6 sion Plan Amendments Act of 1986’’ and inserting ‘‘the

7 Retirement Protection Act of 1993’’.

8 (b) EFFECTIVE DATE.—The amendments made by

9 this section shall be effective on the date of enactment of

10 this Act.

11 SEC. 402. DEFINITION OF CONTRIBUTING SPONSOR.

12 (a) Paragraph (13) of section 4001(a) of the Em13 ployee Retirement Income Security Act of 1974 (29

14 U.S.C. 1301(a)) is amended by deleting ‘‘means a per15 son—’’ and all that follows and inserting in lieu thereof

16 ‘‘means a person described in section 302(c)(11)(A) (with17 out regard to section 302(c)(11)(B)) of this Act or section

18 412(c)(11)(A) (without regard to section 412(c)(11)(B))

19 of the Internal Revenue Code of 1986.’’

20 (b) EFFECTIVE DATE.—The amendments made by

21 this section shall be effective as if included in the Pension

22 Protection Act.

23 SEC. 403. RECOVERY RATIO UNDER ERISA SECTION 4022(c).

24 (a) Sec. 4022(c)(3) of the Employee Retirement In25 come Security Act of 1974 (29 U.S.C. 1322(c)(3)) is
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1 amended by deleting subparagraphs (A) and (B), and

2 amending subparagraph (C)—

3 (1) by deleting ‘‘(C)’’ and all that precedes

4 clause (i) and inserting in its place:

5 ‘‘For purposes of this section, the term ‘recov6 ery ratio’ means, with respect to the termination of

7 such plan, the ratio of—’’; and

8 (2) by renumbering clauses (i) and (ii) as sub9 paragraphs (A) and (B), respectively.

10 (b) EFFECTIVE DATE.—The amendments made by

11 this section shall be effective as if included in the Pension

12 Protection Act.

13 SEC. 404. DISTRESS TERMINATION CRITERIA FOR BANKING

14 INSTITUTIONS.

15 (a) CLARIFICATION OF DISTRESS CRITERION.—

16 Subclause (I) of section 4041(c)(2)(B)(i) of the Employee

17 Retirement Income Security Act of 1974 (29 U.S.C.

18 1341(c)(2)(B)(i)) is amended by inserting after ‘‘under

19 any similar’’ the words ‘‘Federal law or’’.

20 (b) EFFECTIVE DATE.—The amendments made by

21 this section shall be effective as if included in the Single22 Employer Pension Plan Amendments Act of 1986.

23 SEC. 405. SINGLE SUM DISTRIBUTIONS.

24 (a) MINIMUM BENEFITS.—
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1 (1) Section 411(a)(11) of the Internal Revenue

2 Code of 1986 is amended by revising subparagraph

3 (B) to read as follows:

4 ‘‘(B) DETERMINATION OF PRESENT

5 VALUE.—For purposes of subparagraph (A),

6 the present value shall be calculated in accord7 ance with section 417(e)(3).’’

8 (2) Section 417(e) of the Code is amended by

9 revising paragraph (3) to read as follows:

10 ‘‘(3) DETERMINATION OF PRESENT VALUE.—

11 ‘‘(A) IN GENERAL.—

12 ‘‘(i) PRESENT VALUE.—Except as

13 provided in subparagraph (B), for pur14 poses of paragraphs (1) and (2), the

15 present value shall not be less than the

16 present value calculated by using the appli17 cable mortality table and the applicable in18 terest rate.

19 ‘‘(ii) DEFINITIONS.—For purposes of

20 clause (i), the term ‘applicable mortality

21 table’ means the prevailing Commissioner’s

22 standard table (described in section

23 807(d)(5)(A)) that would be used to deter24 mine reserves for group annuity contracts

25 issued on the date as of which present
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1 value is being determined (without regard

2 to any other subparagraph of section

3 807(d)(5)), and the term ‘applicable inter4 est rate’ means the rate of interest on a

5 30-year Treasury security (as of the date

6 of distribution).

7 ‘‘(B) EXCEPTION.—In the case of a dis8 tribution from a plan that was adopted and in

9 effect prior to the enactment of the Retirement

10 Protection Act of 1993, the present value of

11 any distribution made before the earlier of (i)

12 the later of when a plan amendment applying

13 subparagraph (A) is adopted or made effective

14 or (ii) the first day of the first plan year begin15 ning after December 31, 1999 shall be cal16 culated, for purposes of paragraphs (1) and (2),

17 using the interest rate determined under the

18 regulations of the Pension Benefit Guaranty

19 Corporation for determining the present value

20 of a lump sum distribution on plan termination

21 that were in effect on September 1, 1993 and

22 under the provisions of the plan and the Code

23 that were in effect immediately before such en24 actment, provided that such plan provisions sat-
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1 isfied section 417(e)(3) as in effect at such

2 time.’’

3 (b) MAXIMUM BENEFITS.—Section 415(b)(2)(E) of

4 the Code is amended—

5 (1) by redesignating clauses (ii) and (iii) as

6 clauses (iii) and (iv), respectively,

7 (2) by revising clause (i) and adding a new

8 clause (ii) to read as follows:

9 ‘‘(i) For purposes of adjusting any

10 benefit or limitation under subparagraph

11 (B), the interest rate assumption shall not

12 be less than the greater of 5 percent or the

13 rate specified in the plan; provided that for

14 purposes of adjusting the benefit or limita15 tion of any form of benefit subject to sec16 tion 417(e)(3), the ‘applicable interest rate

17 under section 417(e)(3)’ shall be sub18 stituted for ‘5 percent’.

19 ‘‘(ii) For purposes of adjusting any

20 benefit or limitation under subparagraph

21 (C), the interest rate assumption shall not

22 be less than the greater of 5 percent or the

23 rate specified in the plan.’’

24 and (3) by adding a new clause (v) to read as

25 follows:
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1 ‘‘(v) For purposes of adjusting any

2 benefit or limitation under subparagraphs

3 (B), (C), or (D), the prevailing Commis4 sioner’s standard table (described in sec5 tion 807(d)(5)(A)) that would be used to

6 determined reserves for group annuity con7 tracts issued on the date as of which the

8 determination is being made (without re9 gard to any other subparagraph of section

10 807(d)(5)) shall be applied.’’

11 (c)(1) Section 203(e) of the Employee Retirement In12 come Security Act of 1974 (29 U.S.C. 1053(e)) is amend13 ed by revising paragraph (2) to read as follows:

14 ‘‘(2) For purposes of paragraph (1), the present

15 value shall be calculated in accordance with section

16 205(g)(3).’’

17 (2) Section 205(g) of such Act (29 U.S.C. 1055(g))

18 is amended by revising paragraph (3) to read as follows:

19 ‘‘(3) DETERMINATION OF PRESENT VALUE.—

20 ‘‘(A) IN GENERAL.—

21 ‘‘(i) PRESENT VALUE.—Except as

22 provided in subparagraph (B), for pur23 poses of paragraphs (1) and (2), the

24 present value shall not be less than the

25 present value calculated by using the appli-
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1 cable mortality table and the applicable in2 terest rate.

3 ‘‘(ii) DEFINITIONS.—For purposes of

4 clause (i), the term ‘applicable mortality

5 table’ means the prevailing Commissioner’s

6 standard table (described in section

7 807(d)(5)(A) of the Internal Revenue Code

8 of 1986) that would be used to determine

9 reserves for group annuity contracts issued

10 on the date as of which present value is

11 being determined (without regard to any

12 other subparagraph of section 807(d)(5) of

13 the Internal Revenue Code of 1986), and

14 the term ‘applicable interest rate’ means

15 the rate of interest on a 30-year Treasury

16 security (as of the date of distribution).

17 ‘‘(B) EXCEPTION.—In the case of a dis18 tribution from a plan that was adopted and in

19 effect prior to the enactment of the Retirement

20 Protection Act of 1993, the present value of

21 any distribution made before the earlier of (i)

22 the later of when a plan amendment applying

23 subparagraph (A) is adopted or made effective

24 or (ii) the first day of the first plan year begin25 ning after December 31, 1999 shall be cal-
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1 culated, for purposes of paragraphs (1) and (2),

2 using the interest rate determined under the

3 regulations of the Pension Benefit Guaranty

4 Corporation for determining the present value

5 of a lump sum distribution on plan termination

6 that were in effect on September 1, 1993 and

7 under the provisions of the plan and this Act

8 that were in effect immediately before such en9 actment, provided that such plan provisions sat10 isfied section 205(g)(3) as in effect at such

11 time.’’

12 (d) EFFECTIVE DATE.—

13 (1) IN GENERAL.—The amendments made by

14 this section shall apply to plan years and limitation

15 years beginning after December 31, 1994, except

16 that an employer may elect to treat the amendments

17 made by this section as being effective on or after

18 the date of enactment.

19 (2) NO REDUCTION IN ACCRUED BENEFITS.—A

20 participant’s accrued benefit shall not be considered

21 to be reduced in violation of section 411(d)(6) of the

22 Internal Revenue Code of 1986 or section 204(g) of

23 the Employee Retirement Income Security Act of

24 1974 merely because (A) the benefit is determined

25 in accordance with section 417(e)(3)(A) of such
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1 Code, as amended by this Act, or section 205(g)(3)

2 of the Employee Retirement Income Security Act of

3 1974, as amended by this Act, or (B) the plan ap4 plies section 415(b)(2)(E) of such Code, as amended

5 by this Act.

6 (3) SECTION 415.—

7 (A) NO REDUCTION REQUIRED.—An ac8 crued benefit shall not be required to be re9 duced below the accrued benefit as of the last

10 day of the last plan year beginning before Jan11 uary 1, 1995 merely because of the amend12 ments made by subsection (b).

13 (B) TIMING OF PLAN AMENDMENT.—A

14 plan that operates in accordance with the

15 amendments made by subsection (b) shall not

16 be treated as failing to satisfy section 401(a) of

17 the Internal Revenue Code of 1986 or as not

18 being operated in accordance with the provi19 sions of the plan until such date as the Sec20 retary provides merely because the plan has not

21 been amended to include the amendments made

22 by subsection (b).
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1 SEC. 406. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM

2 FUNDING CONTRIBUTIONS.

3 (a) AMENDMENTS TO THE INTERNAL REVENUE

4 CODE OF 1986.—

5 (1) CLARIFICATION OF APPLICABILITY OF PRO6 VISION.—Section 412(n)(1) of the Internal Revenue

7 Code of 1986 is amended by striking ‘‘to which this

8 section applies’’ and inserting ‘‘covered under sec9 tion 4021 of the Employee Retirement Income Secu10 rity Act of 1974’’.

11 (2) REPEAL OF $1,000,000 OFFSET.—Section

12 412(n)(3) of such Code is amended by striking all

13 that follows ‘‘equal to’’ through and including ‘‘(B)’’.

14 (3) REPEAL OF 60-DAY DELAY.—Section

15 412(n)(4)(B) of such Code is amended by striking

16 ‘‘60th day following the’’.

17 (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT

18 INCOME SECURITY ACT OF 1974.—

19 (1) CLARIFICATION OF APPLICABILITY OF PRO20 VISION.—Section 302(f)(1) of the Employee Retire21 ment Income Security Act of 1974 (29 U.S.C.

22 1082(f)(1)) is amended by striking ‘‘to which this

23 section applies’’ and inserting ‘‘covered under sec24 tion 4021 of this Act’’.
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1 (2) REPEAL OF $1,000,000 OFFSET.—Section

2 302(f)(3) of such Act is amended by striking all that

3 follows ‘‘equal to’’ through and including ‘‘(B)’’.

4 (3) REPEAL OF 60-DAY DELAY.—Section

5 302(f)(4)(B) of such Act is amended by striking

6 ‘‘60th day following the’’.

7 (c) EFFECTIVE DATE.—The amendments made by

8 this section shall be effective for installments and other

9 payments required under section 412 of the Internal Reve10 nue Code of 1986 or under Part 3 of Subtitle B of the

11 Employee Retirement Income Security Act of 1974 that

12 become due on or after the date of enactment.

13 SEC. 407. ROUNDING RULES FOR COST OF LIVING ADJUST14 MENTS.

15 (a) COST OF LIVING ADJUSTMENT FOR COMPENSA16 TION LIMIT.—Section 401(a)(17)(B) of the Internal Reve17 nue Code of 1986 is revised to read as follows:

18 ‘‘(B) The Secretary shall adjust annually

19 the $150,000 amount in paragraph (A) for in20 creases in the cost of living at the same time

21 and in the same manner as adjustments under

22 section 415(d), except that the base period shall

23 be the calendar quarter beginning October 1,

24 1993 and the adjusted value shall be rounded

25 down to the next lowest multiple of $10,000.’’
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1 (b) COST OF LIVING ADJUSTMENT FOR MAXIMUM

2 DEFINED BENEFIT AMOUNT.—Section 415(d) of such

3 Code is amended to read as follows:

4 ‘‘(d) COST OF LIVING ADJUSTMENTS.—

5 ‘‘(1) IN GENERAL.—The Secretary shall adjust

6 annually—

7 ‘‘(A) the $90,000 amount in subsection

8 (b)(1)(A), and

9 ‘‘(B) in the case of a participant who sepa10 rated from service, the amount taken into ac11 count under subsection (b)(1)(B),

12 for increases in the cost-of-living in accordance with

13 regulations prescribed by the Secretary.

14 ‘‘(2) METHOD.—

15 ‘‘(A) IN GENERAL.—The regulations pre16 scribed under paragraph (1) shall provide for

17 adjustment procedures which are similar to the

18 procedures used to adjust benefit amounts

19 under section 215(i)(2)(A) of the Social Secu20 rity Act.

21 ‘‘(B) PERIODS FOR ADJUSTMENT OF DOL22 LAR AMOUNT.—For purposes of paragraph

23 (1)(A)—

24 ‘‘(i) IN GENERAL.—The adjustment

25 with respect to any calendar year shall be
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1 based on the increase in the applicable

2 index as of the close of the calendar quar3 ter ending September 30 of the preceding

4 calendar year over such index as of the

5 close of the base period.

6 ‘‘(ii) BASE PERIOD.—For purposes of

7 clause (i), the base period is the calendar

8 quarter beginning October 1, 1986.

9 ‘‘(C) BASE PERIOD FOR SEPARATIONS.—

10 For purposes of paragraph (1)(B), the base pe11 riod is the last calendar quarter of the calendar

12 year preceding the calendar year in which the

13 participant separated from service.

14 ‘‘(3) ROUNDING.—The adjusted value of the

15 $90,000 amount in subsection (b)(1)(A) for a year

16 rounded down to the next lowest multiple of

17 $5,000.’’

18 (c) COST OF LIVING ADJUSTMENT FOR MAXIMUM

19 ANNUAL ADDITION.—

20 (1) Section 415(c) of such Code is amended by

21 adding a new paragraph (8) at the end thereof to

22 read as follows:

23 ‘‘(8) COST OF LIVING ADJUSTMENTS.—The

24 Secretary shall adjust annually the $30,000 amount

25 in paragraph (c)(1)(A) for increases in the cost of
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1 living at the same time and in the same manner as

2 adjustments under subsection (d), except that the

3 base period is the calendar quarter beginning Octo4 ber 1, 1993.’’

5 (2) CONFORMING AMENDMENT.—Section

6 415(c)(1)(A) of such Code is amended by striking

‘‘(or, if greater 1 7 ⁄4 of the dollar limitation in effect

8 under subsection (b)(1)(A))’’ and inserting ‘‘or such

9 larger amount as provided under paragraph (8)’’.

10 (d) COST OF LIVING ADJUSTMENT FOR MAXIMUM

11 SALARY DEFERRAL.—Section 402(g)(5) of such Code is

12 amended by inserting before the period at the end of that

13 paragraph the phrase ‘‘, except that the adjusted value

14 shall be rounded down to the next lowest multiple of

15 $500’’.

16 (e) COST OF LIVING ADJUSTMENT FOR ELIGIBILITY

17 FOR SIMPLIFIED EMPLOYEE PENSIONS.—Section

18 408(k)(8) of such Code is amended by inserting before the

19 period at the end of that paragraph the phrase ‘‘, except

20 that the adjusted value of the $300 amount shall be

21 rounded down to the next lowest multiple of $50’’.

22 (f) EFFECTIVE DATE.—The amendments made by

23 this section shall be effective for years beginning after De24 cember 31, 1994.
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1 SEC. 408. LIMITATION ON CROSS-TESTING IN DEFINED

2 CONTRIBUTION PLANS.

3 (a) Section 401(a)(5) of the Internal Revenue Code

4 of 1986 is amended by adding at the end thereof a new

5 subparagraph to read as follows:

6 ‘‘(F)(i) A defined contribution plan (other

7 than a target benefit plan that satisfies regula8 tions prescribed by the Secretary) shall be con9 sidered as satisfying the requirements of para10 graph (4) only if the contributions provided

11 under the plan satisfy the requirements of para12 graph (4).

13 ‘‘(ii) Two or more plans of an employer, at

14 least one of which is a defined contribution

15 plan, shall be considered as satisfying the re16 quirements of paragraph (4) when considered

17 as a single plan only if the contributions pro18 vided under the aggregated plans satisfy the re19 quirements of paragraph (4).’’

20 (b)(1) Section 415(b)(6)(A) of such Code is amended

21 by inserting ‘‘that is a target benefit plan that satisfies

22 regulations prescribed by the Secretary’’ after ‘‘defined

23 contribution plan’’.

24 (2) Section 415(b)(6)(B) is amended by striking

25 ‘‘and’’.
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1 (3) Subparagraph (C) of section 415(b)(6) is redesig2 nated as subparagraph (D), and a new subparagraph (C)

3 is inserted to read as follows:

4 ‘‘(C) employer-provided benefits under a

5 defined contribution plan, for purposes of sec6 tion 410(b)(2), and’’.

7 (c) EFFECTIVE DATE.—The amendments made by

8 this section shall be effective for plan years beginning after

9 September 30, 1993; provided, however, that for defined

10 contribution plans in existence on September 30, 1993,

11 the amendments shall be effective for plan years beginning

12 on or after January 1, 1995.

13 SEC. 409. FUNDING OF RESTORED PLANS.

14 Any changes made by this Act to section 412 of the

15 Internal Revenue Code of 1986 or to part 3 of subtitle

16 B of title I of the Employee Retirement Income Security

17 Act of 1974 shall not apply to a plan which is, on the

18 date of enactment of this Act, subject to a restoration pay19 ment schedule order issued by the Pension Benefit Guar20 anty Corporation that meets the requirements of section

21 1.412(c)(1)–3 of the Treasury Regulations.
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1 TITLE V—EFFECTIVE DATES

2 SEC. 501. EFFECTIVE DATES.

3 Except as otherwise provided in this Act, the amend4 ments made by this Act shall be effective on the date of

5 enactment of this Act.

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