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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 35 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                 H. R. 35

To amend the Employee Retirement Income Security Act of 1974 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

                            January 4, 1995

  Mr. Fawell introduced the following bill; which was referred to the 
          Committee on Economic and Educational Opportunities

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

     (a) Short Title.--This Act may be cited as the ``Retirement 
Protection Act of 1995''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Amendment of ERISA.
                     TITLE I--PENSION PLAN FUNDING

Sec. 101. Minimum funding requirements.
Sec. 102. Limitation on changes in current liability assumptions.
Sec. 103. Anticipation of bargained benefit increases.
Sec. 104. Modification of quarterly contribution requirement.
  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

Sec. 201. Reportable events.
Sec. 202. Alternative to involuntary termination.
Sec. 203. Certain information required to be furnished to PBGC.
Sec. 204. Liability upon liquidation of contributing sponsor or 
                            controlled group member if plan remains 
                            ongoing.
Sec. 205. Enforcement of minimum funding requirements.
Sec. 206. Remedies for noncompliance with requirements for standard 
                            termination.
Sec. 207. Prohibition on benefit increases where plan sponsor is 
                            insolvent.
Sec. 208. Substantial owner benefits.
                  TITLE III--MISCELLANEOUS AMENDMENTS

Sec. 301. Recovery ratio under ERISA section 4022(c).
Sec. 302. Rules governing computation of amounts payable by 
                            corporation.
Sec. 303. Distress termination criteria for certain financial 
                            institutions.
Sec. 304. Single sum distributions.
Sec. 305. Adjustments to lien for missed minimum funding contributions.
Sec. 306. Funding of restored plans.
                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

SEC. 2. AMENDMENT OF ERISA.

    The sections of the Employee Retirement Income Security Act of 1974 
which are amended by the subsequent provisions of this Act are amended 
so as to read as such sections would read if the Uruguay Round 
Agreements Act had not been enacted. References to such sections in the 
subsequent provisions of this Act shall be deemed references to such 
sections as amended by this section. This section shall be effective as 
if included in the Uruguay Round Agreements Act.

                     TITLE I--PENSION PLAN FUNDING

SEC. 101. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 302(d)(1)(A) of such Act 
                is amended to read as follows:
                            ``(ii) the sum of the charges for such plan 
                        year under subsection (b)(2), reduced by the 
                        sum of the credits for such plan year under 
                        subparagraph (B) of subsection (b)(3), plus''.
                    (B) The last sentence in section 302(d)(1) of such 
                Act is amended to read as follows:
        ``Such increase shall not exceed the amount which, after taking 
        into account charges (other than the additional charge under 
        this subsection) and credits under subsection (b), is necessary 
        to increase the funded current liability percentage (taking 
        into account the expected increase in current liability due to 
        benefits accruing during the plan year) to 100 percent.''
            (2) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 302(d) of such Act is amended--
                    (A) by striking ``plus'' at the end of subparagraph 
                (A),
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, plus''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (3) Increase in current liability due to change in required 
        assumptions.--
                    (A) Paragraph (3) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) In general.--The unfunded old 
                        liability amount with respect to any plan for 
                        any plan year shall be increased by the amount 
                        necessary to amortize the amount of additional 
                        unfunded old liability under the plan in equal 
                        annual installments over a period of 12 plan 
                        years (beginning with the first plan year 
                        beginning after December 31, 1995).
                            ``(ii) Additional unfunded old liability.--
                        For purposes of clause (i), the term 
                        `additional unfunded old liability' means the 
                        amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1995, valued using the assumptions 
                                required by paragraph (7)(C) as in 
                                effect for plan years beginning after 
                                December 31, 1995, exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of such first 
                                plan year, valued using the same 
                                assumptions used under subclause (I) 
                                (other than the assumptions required by 
                                paragraph (7)(C)), using the prior 
                                interest rate, and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) Prior interest rate.--For purposes 
                        of clause (ii), the term `prior interest rate' 
                        means the rate of interest that is the same 
                        percentage of the weighted average under 
                        subsection (b)(5)(B)(ii)(I) for the first plan 
                        year beginning after December 31, 1995, as the 
                        rate of interest used by the plan to determine 
                        current liability for the first plan year 
                        beginning after December 31, 1992, is of the 
                        weighted average under subsection 
                        (b)(5)(B)(ii)(I) for such first plan year 
                        beginning after December 31, 1992.''
            (4) Applicable percentage for determining unfunded new 
        liability amount.--Subparagraph (C) of section 302(d)(4) of 
        such Act is amended by striking ``35'' and inserting ``60''.
            (5) Unpredictable contingent event amount.--
                    (A) Subparagraph (A) of section 302(d)(5) of such 
                Act is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding after clause (ii) the 
                        following new clause:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 302(d) of such Act is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
                    (C) Clause (ii) of section 302(e)(4)(D) of such Act 
                is amended--
                            (i) by striking ``greater of'' and 
                        inserting ``greatest of'' before subclause (I);
                            (ii) by striking ``or'' at the end of 
                        subclause (I);
                            (iii) by striking the period at the end of 
                        subclause (II) and inserting ``, or''; and
                            (iv) by adding after subclause (II) the 
                        following new clause:
                                    ``(III) 25 percent of the amount 
                                determined under subsection 
                                (d)(5)(A)(iii) for the plan year.''
            (6) Required interest rate and mortality assumptions for 
        determining current liability.--Subparagraph (C) of section 
        302(d)(7) of such Act is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1995--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except that the 
                        highest rate in the permissible range under 
                        subparagraph (B)(ii) thereof shall not exceed 
                        100 percent of the weighted average referred to 
                        in such subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the table prescribed by the 
                        Secretary.
                The table prescribed under clause (ii) shall be based 
                on the prevailing commissioners' standard table used to 
                determine reserves for group annuity contracts issued 
                on the date as of which current liability is 
                determined. The Secretary shall prescribe separate 
                tables, which may be used instead of the table 
                described in the preceding sentence, to calculate 
                mortality rates for participants who satisfy the 
                definition of disability under titles II and XVI of the 
                Social Security Act and the regulations thereunder.''
            (7) Transition rule.--Section 302(d) of such Act is amended 
        by adding at the end the following new paragraph:
            ``(9) Phasein of increases in funding required by 
        retirement protection act of 1995.--
                    ``(A) In general.--For any applicable plan year, at 
                the election of the employer, the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would be required 
                        under paragraph (1) if the provisions of this 
                        title as in effect for plan years beginning 
                        before January 1, 1996, had remained in effect, 
                        or
                            ``(ii) the amount which, after taking into 
                        account charges (other than the additional 
                        charge under this subsection) and credits under 
                        subsection (b), is necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        percentage equal to the sum of the initial 
                        funded current liability percentage of the plan 
                        plus the applicable number of percentage points 
                        for such applicable plan year.
                    ``(B) Applicable number of percentage points.--
                            ``(i) Initial funded current liability 
                        percentage of 75 percent or bhless.--Except as 
                        provided in clause (ii), for plans with an 
                        initial funded current liability percentage of 
                        75 percent or less, the applicable number of 
                        percentage points for the applicable plan year 
                        is:

                         
                                                         The applicable
                         ``In the case of
                                                              number of
                           applicable plan years
                                                             percentage
                           beginning in:
                                                             points is:
                                 1996................             3    
                                 1997................             6    
                                 1998................             9    
                                 1999................            12    
                                 2000................            15    
                                 2001................            19    
                                 2002................           24.    
                            ``(ii) Other cases.--In the case of a plan 
                        to which this clause applies, the applicable 
                        number of percentage points for any such 
                        applicable plan year is the sum of--
                                    ``(I) 2 percentage points;
                                    ``(II) the applicable number of 
                                percentage points (if any) under this 
                                clause for the preceding applicable 
                                plan year;
                                    ``(III) the product of .10 
                                multiplied by the excess (if any) of 
                                (a) 85 percentage points over (b) the 
                                sum of the initial funded current 
                                liability percentage and the number 
                                determined under subclause (II);
                                    ``(IV) for applicable plan years 
                                beginning in 2000, 1 percentage point; 
                                and
                                    ``(V) for applicable plan years 
                                beginning in 2001, 2 percentage points.
                            ``(iii) Plans to which clause (ii) 
                        applies.--
                                    ``(I) In general.--Clause (ii) 
                                shall apply to a plan for an applicable 
                                plan year if the initial funded current 
                                liability percentage of such plan is 
                                more than 75 percent.
                                    ``(II) Plans initially under clause 
                                (i).--In the case of a plan which (but 
                                for this subclause) has an initial 
                                funded current liability percentage of 
                                75 percent or less, clause (ii) (and 
                                not clause (i)) shall apply to such 
                                plan with respect to applicable plan 
                                years beginning after the first 
                                applicable plan year for which the sum 
                                of the initial funded current liability 
                                percentage and the applicable number of 
                                percentage points (determined under 
                                clause (i)) exceeds 75 percent. For 
                                purposes of applying clause (ii) to 
                                such a plan, the initial funded current 
                                liability percentage of such plan shall 
                                be treated as being the sum referred to 
                                in the preceding sentence.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) The term `applicable plan year' means 
                        a plan year beginning after December 31, 1995, 
                        and before January 1, 2003.
                            ``(ii) The term `initial funded current 
                        liability percentage' means the funded current 
                        liability percentage as of the first day of the 
                        first plan year beginning after December 31, 
                        1995.''
            (8) Liquidity requirement.--
                    (A) Section 302(e) of such Act is amended by 
                redesignating paragraph (5) as paragraph (6) and by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Liquidity requirement.--
                    ``(A) In general.--A plan to which this paragraph 
                applies shall be treated as failing to pay the full 
                amount of any required installment to the extent that 
                the value of the liquid assets paid in such installment 
                is less than the liquidity shortfall (whether or not 
such liquidity shortfall exceeds the amount of such installment 
required to be paid but for this paragraph).
                    ``(B) Plans to which paragraph applies.--This 
                paragraph shall apply to a defined benefit plan to 
                which subsection (d) applies and which--
                            ``(i) is required to pay installments under 
                        this subsection for a plan year, and
                            ``(ii) has a liquidity shortfall for any 
                        quarter during such plan year.
                    ``(C) Period of underpayment.--For purposes of 
                paragraph (1), any portion of an installment that is 
                treated as not paid under subparagraph (A) shall 
                continue to be treated as unpaid until the close of the 
                quarter in which the due date for such installment 
                occurs.
                    ``(D) Limitation on increase.--If the amount of any 
                required installment is increased by reason of 
                subparagraph (A), in no event shall such increase 
                exceed the amount which, when added to prior 
                installments for the plan year, is necessary to 
                increase the funded current liability percentage 
                (taking into account the expected increase in current 
                liability due to benefits accruing during the plan 
                year) to 100 percent.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Liquidity shortfall.--The term 
                        `liquidity shortfall' means, with respect to 
                        any required installment, an amount equal to 
                        the excess (as of the last day of the quarter 
                        for which such installment is made) of the base 
                        amount with respect to such quarter over the 
                        value (as of such last day) of the plan's 
                        liquid assets.
                            ``(ii) Base amount.--
                                    ``(I) In general.--The term `base 
                                amount' means, with respect to any 
                                quarter, an amount equal to 3 times the 
                                sum of the adjusted disbursements from 
                                the plan for the 12 months ending on 
                                the last day of such quarter.
                                    ``(II) Special rule.--If the amount 
                                determined under clause (i) exceeds an 
                                amount equal to 2 times the sum of the 
                                adjusted disbursements from the plan 
                                for the 36 months ending on the last 
                                day of the quarter and an enrolled 
                                actuary certifies to the Secretary that 
                                such excess is the result of 
                                nonrecurring circumstances, the base 
                                amount with respect to such quarter 
                                shall be determined without regard to 
                                amounts related to those nonrecurring 
                                circumstances.
                            ``(iii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payments of single sums 
                        and other benefits, and administrative 
                        expenses.
                            ``(iv) Adjusted disbursements.--The term 
                        `adjusted disbursements' means disbursements 
                        from the plan reduced by the product of--
                                    ``(I) the plan's funded current 
                                liability percentage (as defined in 
                                subsection (d)(8)) for the plan year, 
                                and
                                    ``(II) the sum of the purchases of 
                                annuities, payments of single sums, and 
                                such other disbursements as the 
                                Secretary shall provide in regulations.
                            ``(v) Liquid assets.--The term `liquid 
                        assets' means cash, marketable securities and 
                        such other assets as specified by the Secretary 
                        in regulations.
                            ``(vi) Quarter.--The term `quarter' means, 
                        with respect to any required installment, the 
                        3-month period preceding the month in which the 
                        due date for such installment occurs.
                    ``(F) Regulations.--The Secretary may prescribe 
                such regulations as are necessary to carry out this 
                paragraph.''
                    (B) Limitation on distributions other than life 
                annuities paid by the plan.--
                            (i) Section 204 of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 1054) is 
                        amended by redesignating subsection (i) as (j) 
                        and inserting a new subsection (i) to read as 
                        follows:
    ``(i) Limitation on Distributions Other Than Life Annuities Paid By 
The Plan.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part, the fiduciary of a pension plan that is subject to 
        the additional funding requirements of section 302(d) shall not 
        permit a prohibited payment to be made from a plan during a 
        period in which such plan has a liquidity shortfall (as defined 
        in section 302(e)(5)).
            ``(2) Prohibited payment.--For purposes of paragraph (1), 
        the term `prohibited payment' means--
                    ``(A) any payment, in excess of the monthly amount 
                paid under a single life annuity (plus any social 
                security supplements described in the last sentence of 
                section 204(b)(1)(G)), to a participant or beneficiary 
                whose annuity starting date (as defined in section 
                205(h)(2)), that occurs during the period referred to 
                in paragraph (1),
                    ``(B) any payment for the purchase of an 
                irrevocable commitment from an insurer to pay benefits, 
                and
                    ``(C) any other payment specified by the Secretary 
                by regulations.
            ``(3) Period of shortfall.--For purposes of this 
        subsection, a plan has a liquidity shortfall during the period 
        that there is an underpayment of an installment under section 
        302(e) by reason of paragraph (5)(A) thereof.
            ``(4) Coordination with other provisions.--Compliance with 
        this subsection shall not constitute a violation of any other 
        provision of this Act.''
                            (ii) Section 502 of such Act is amended by 
                        adding at the end thereof a new subsection (m) 
                        to read as follows:
    ``(m) In the case of a distribution to a pension plan participant 
or beneficiary in violation of section 204(i) by a plan fiduciary, the 
Secretary shall assess a penalty against such fiduciary in an amount 
equal to the value of the distribution. Such penalty shall not exceed 
$10,000 for each such distribution.''
            (9) Amendment to definition of full funding limitation.--
                    (A) Subparagraph (A) of section 302(c)(7) of such 
                Act is amended--
                            (i) by inserting ``(including the expected 
                        increase in current liability due to benefits 
                        accruing during the plan year)'' after 
                        ``current liability'' in clause (i), and
                            (ii) by adding at the end the following 
                        flush sentences:
                ``In no event shall the excess described in the 
                preceding sentence for any plan year be less than the 
                excess (if any) of 90 percent of the current liability 
                of the plan (including the expected increase in current 
                liability due to benefits accruing during the plan 
                year) over the value of the plan's assets determined 
                under paragraph (2). For purposes of the preceding 
                sentence, the term `current liability' has the meaning 
                given such term by subsection (d)(7) (determined 
                without regard to subsection (d)(7)(D)), and assets 
                shall not be reduced by any credit balance in the 
                funding standard account.''.
                    (C) Subparagraph (B) of section 302(c)(7) of such 
                Act is amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (d)(7) (without regard to 
                subparagraphs (C) and (D) thereof) and using the rate 
                of interest used under subsection (b)(5)(B).''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 1995.
            (2) Delay in effective date for disabled lives.--For plan 
        years beginning before January 1, 1997, current liability may 
        be determined using a plan's own assumptions for purposes of 
        calculating the mortality rates of disabled lives.

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

    (a) In General.--Paragraph (5) of section 302(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(5)) is 
amended--
            (1) by striking ``If the funding method'' and inserting the 
        following:
                    ``(A) In general.--If the funding method'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Approval required for certain changes in 
                assumptions by certain single employer plans subject to 
                additional funding requirement.--
                            ``(i) In general.--No actuarial assumption 
                        (other than the assumptions described in 
                        subsection (d)(7)(C)) used to determine the 
                        current liability for a plan to which this 
                        subparagraph applies may be changed without the 
                        approval of the Secretary.
                            ``(ii) Plans to which subparagraph 
                        applies.--This subparagraph shall apply to a 
                        plan only if--
                                    ``(I) subsection (d) applies to the 
                                plan;
                                    ``(II) the employer (within the 
                                meaning of section 302(c)(11) (without 
                                regard to subparagraph (B) thereof)) 
                                maintaining such plan is described in 
                                section 4043(b)(1); and
                                    ``(III) the change in assumptions 
                                (determined after taking into account 
                                any changes in interest rate and 
                                mortality table) results in a decrease 
                                in the unfunded current liability of 
                                the plan for the current plan year that 
                                is $50,000,000 or greater, or that is 
                                $5,000,000 or greater and that is 5 
                                percent or more of the current 
                                liability of the plan before such 
                                change.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to changes in assumptions for plan years beginning after 
        October 28, 1993.
            (2) Certain changes cease to be effective.--In the case of 
        changes in assumptions for plan years beginning after December 
        31, 1992, and on or before October 28, 1993, such changes shall 
        cease to be effective for plan years beginning after December 
        31, 1995, if--
                    (A) such change would have required the approval of 
                the Secretary had such amendment applied to such 
                change, and
                    (B) such change is not so approved.

SEC. 103. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

    (a) In General.--Section 302(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1082(c)) is amended by adding at the 
end the following new paragraph:
            ``(12) Anticipation of benefit increases effective in the 
        future.--In determining projected benefits, the funding method 
        of a collectively bargained plan described in section 413(a) of 
        the Internal Revenue Code of 1986 (other than a multiemployer 
        plan) shall anticipate benefit increases scheduled to take 
        effect during the term of the collective bargaining agreement 
        applicable to the plan.''
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 1995 with respect to 
collective bargaining agreements in effect on or after January 1, 1996.

SEC. 104. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

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

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

SEC. 201. REPORTABLE EVENTS.

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

SEC. 202. ALTERNATIVE TO INVOLUNTARY TERMINATION.

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

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

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

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

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

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

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

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

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

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

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

SEC. 205. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.

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

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

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

SEC. 207. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS 
              INSOLVENT.

    (a) In General.--Section 204 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1054), as amended by section 101 of 
this Act, is further amended by redesignating subsection (j) as (k) and 
inserting a new subsection (j) to read as follows:
    ``(j)(1) In the case of a plan described in paragraph (3) which is 
maintained by an employer that is a debtor in a case under title 11, 
United States Code, or similar Federal or State law, no amendment of 
the plan which increases the liabilities of the plan by reason of--
            ``(A) any increase in benefits,
            ``(B) any change in the accrual of benefits, or
            ``(C) any change in the rate at which benefits become 
        nonforfeitable under the plan,
with respect to employees of the debtor, shall be effective prior to 
the effective date of such employer's plan of reorganization.
    ``(2) Paragraph (1) shall not apply to any plan amendment that--
            ``(A) the Secretary determines to be reasonable and that 
        provides for only de minimis increases in the liabilities of 
        the plan with respect to employees of the debtor,
            ``(B) only repeals an amendment described in section 
        302(c)(8),
            ``(C) is required as a condition of qualification under 
        part I of subchapter D, of chapter 1, of the Internal Revenue 
        Code of 1986, or
            ``(D) was adopted prior to, or pursuant to a collective 
        bargaining agreement entered into prior to, the date on which 
        the employer became a debtor in a case under title 11, United 
        States Code, or similar Federal or State law.
    ``(3) This subsection shall apply only to plans (other than 
multiemployer plans) covered under section 4021 of this Act for which 
the funded current liability percentage (within the meaning of section 
302(d)(8) of this Act) is less than 100 percent after taking into 
account the effect of the amendment.
    ``(4) For purposes of this subsection, `employer' has the meaning 
set forth in section 302(c)(11)(A), without regard to section 
302(c)(11)(B).''
    (b) Effective Date of Plan Amendment.--Section 4022 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by 
inserting at the end the following new subsection:
    ``(f) For purposes of this section, the effective date of a plan 
amendment described in section 204(j)(1) shall be the effective date of 
the plan of reorganization of the employer described in section 
204(j)(1) or, if later, the effective date stated in such amendment.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan amendments adopted on or after the date of enactment of 
this Act.

SEC. 208. SUBSTANTIAL OWNER BENEFITS.

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

                  TITLE III--MISCELLANEOUS AMENDMENTS

SEC. 301. RECOVERY RATIO UNDER ERISA SECTION 4022(c).

    (a) In General.--Section 4022(c)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(c)(3)) is amended--
            (1) by striking ``(3)(A) Except as'' and all that follows 
        through ``the ration of--'' in subparagraph (C) and inserting 
        the following:
    ``(3) For purposes of this section, the term `recovery ratio' 
means, with respect to a terminated plan the ratio of--''; and
            (2) by redesignating clauses (i) and (ii) in such section 
        4022(c)(3) (as so amended) as subparagraphs (A) and (B), 
        respectively.
    (b) Effective Date.--The amendments made by this section shall be 
effective as if included in the Pension Protection Act.

SEC. 302. RULES GOVERNING COMPUTATION OF AMOUNTS PAYABLE BY 
              CORPORATION.

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

SEC. 303. DISTRESS TERMINATION CRITERIA FOR CERTAIN FINANCIAL 
              INSTITUTIONS.

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

SEC. 304. SINGLE SUM DISTRIBUTIONS.

    (a) Determination of Present Value for Purposes of Restrictions on 
Mandatory Distributions.--Section 203(e)(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1053(e)(2)) is amended to read 
as follows:
    ``(2) For purposes of paragraph (1), the present value shall be 
calculated in accordance with section 205(g)(3).''
    (b) Determination of Present Value for Purposes of Restrictions on 
Cash-Outs.--Section 205(g)(3) of such Act (29 U.S.C. 1055(g)(3)) is 
amended to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i)--
                                    ``(I) Applicable mortality table.--
                                The term `applicable mortality table' 
                                means the table prescribed by the 
                                Secretary. Such table shall be based on 
                                the prevailing commissioners' standard 
                                table (described in section 
                                807(d)(5)(A) of the Internal Revenue 
                                Code of 1986) used to determine 
                                reserves for group annuity contracts 
                                issued on the date as of which present 
                                value is being determined (without 
                                regard to any other subparagraph of 
                                section 807(d)(5) of such Code).
                                    ``(II) Applicable interest rate.--
                                The term `applicable interest rate' 
                                means the annual rate of interest on 
                                30-year Treasury securities for the 
                                month before the date of distribution 
                                or such other time as the Secretary may 
                                by regulations prescribe.
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect prior to the 
                date of the enactment of the Retirement Protection Act 
                of 1995, the present value of any distribution made 
                before the earlier of--
                            ``(i) the later of when a plan amendment 
                        applying subparagraph (A) is adopted or made 
                        effective, or
                            ``(ii) the first day of the first plan year 
                        beginning after December 31, 2000,
                shall be calculated, for purposes of paragraphs (1) and 
                (2), using the interest rates determined under the 
                regulations of the Pension Benefit Guaranty Corporation 
                for determining the present value of a lump sum 
                distribution on plan termination that were in effect on 
                September 1, 1993, and using the provisions of the plan 
                as in effect on the day before the date of the 
                enactment of the Retirement Protection Act of 1995; but 
                only if such provisions of the plan met the 
                requirements of section 205(g)(3) as in effect on the 
                day before such date of enactment.''
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years and limitation years beginning after 
        December 31, 1995; except that an employer may elect to treat 
        the amendments made by this section as being effective on or 
        after the date of enactment.
            (2) No reduction in accrued benefits.--A participant's 
        accrued benefit shall not be considered to be reduced in 
        violation of section 204(g) of the Employee Retirement Income 
        Security Act of 1974 merely because the benefit is determined 
        in accordance with section 205(g)(3) of the Employee Retirement 
        Income Security Act of 1974, as amended by this Act.

SEC. 305. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.

    (a) Clarification of Applicability of Provision.--Section 302(f)(1) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1082(f)(1)) is amended by striking ``to which this section applies'' 
and inserting ``covered under section 4021 of this Act''.
    (b) Repeal of $1,000,000 Offset.--Paragraph (3) of section 302(f) 
of such Act is amended to read as follows:
            ``(3) Amount of lien.--For purposes of paragraph (1), the 
        amount of the lien shall be equal to the aggregate unpaid 
        balance of required installments and other payments required 
        under this section (including interest)--
                    ``(A) for plan years beginning after 1987, and
                    ``(B) for which payment has not been made before 
                the due date.''
    (c) Repeal of 60-Day Delay.--Section 302(f)(4)(B) of such Act is 
amended by striking ``60th day following the''.
    (d) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under part 3 of 
subtitle B of title I of the Employee Retirement Income Security Act of 
1974 that become due on or after the date of enactment.

SEC. 306. FUNDING OF RESTORED PLANS.

    Any changes made by this Act to part 3 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 shall not apply to 
a plan which is, on the date of enactment of this Act, subject to a 
restoration payment schedule order issued by the Pension Benefit 
Guaranty Corporation.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

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