SEC. 2. INTEREST RATE RANGE FOR ADDITIONAL FUNDING
REQUIREMENTS.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
(1) SPECIAL
RULE.—Clause (i) of section
412(l)(7)(C) of the Internal Revenue Code of 1986
(relating to interest rate) is amended by adding at
the end the following new subclause:
‘‘(III) SPECIAL
RULE
FOR
2001
THROUGH 2004.—For a plan year be-
ginning in 2001, 2002, 2003 or 2004,
notwithstanding subclause (I), in the
case that the rate of interest used
under subsection (b)(5) exceeds the
highest rate permitted under sub-
clause (I), the rate of interest used to
determine current liability under this
subsection may exceed the rate of in-
terest otherwise permitted under sub-
clause (I); except that such rate of in-
terest shall not exceed 120 percent of
the weighted average referred to in
subsection (b)(5)(B)(ii).’’
(2) QUARTERLY
CONTRIBUTIONS.—Subsection
(m) of section 412 of such Code is amended by add-
ing at the end the following new paragraph:
‘‘(7) SPECIAL RULE FOR 2005.—In any case in
which the interest rate used to determine current li-
ability 
is 
determined 
under 
subsection
(l)(7)(C)(i)(III) for purposes of applying paragraphs
(1) and (4)(B)(ii) for plan years beginning in 2005,
the current liability for the preceding plan year shall
be redetermined using 105 percent as the specified
percentage 
determined 
under 
subsection
(l)(7)(C)(i)(II).’’
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—
(1) SPECIAL
RULE.—Clause (i) of section
302(d)(7)(C) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1082(d)(7)(C)) is
amended by adding at the end the following new
subclause:
‘‘(III) SPECIAL
RULE
FOR
2001
THROUGH 2004.—For a plan year be-
ginning in 2001, 2002, 2003 or 2004,
notwithstanding subclause (I), in the
case that the rate of interest used
under subsection (b)(5) exceeds the
highest rate permitted under sub-
clause (I), the rate of interest used to
determine current liability under this
subsection may exceed the rate of in-
terest otherwise permitted under sub-
clause (I); except that such rate of in-
terest shall not exceed 120 percent of
the weighted average referred to in
subsection (b)(5)(B)(ii).’’
(2) QUARTERLY
CONTRIBUTIONS.—Subsection
(e) of section 302 of such Act (29 U.S.C. 1082) is
amended by adding at the end the following new
paragraph:
‘‘(7) SPECIAL RULE FOR 2005.—In any case in
which the interest rate used to determine current li-
ability 
is 
determined 
under 
subsection
(d)(7)(C)(i)(III) for purposes of applying paragraphs
(1) and (4)(B)(ii) for plan years beginning in 2005,
the current liability for the preceding plan year shall
be redetermined using 105 percent as the specified
percentage 
determined 
under 
subsection
(d)(7)(C)(i)(II).’’
(c) PBGC.—Clause (iii) of section 4006(a)(3)(E) of
the Employee Retirement Income Security of Act 1974
(29 U.S.C. 1306(a)(3)(E)) is amended by adding at the
end the following new subclause:
‘‘(IV) In the case of plan years beginning after De-
cember 31, 2001, and before January 1, 2005, subclause
(II) shall be applied by substituting ‘100 percent’ for ‘85
percent’ and by substituting ‘115 percent’ for ‘100 per-
cent’. Subclause (III) shall be applied for such years with-
out regard to the preceding sentence. Any reference to this
clause by any other sections or subsections (other than
sections 4010, 4011 and 4043) shall be treated as a ref-
erence to this clause without regard to this subclause.’’
(d) AMENDMENTS
TO RETIREMENT PROTECTION
ACT OF 1994.—
(1) TRANSITION
RULE
MADE
PERMANENT.—
Paragraph (1) of section 769(c) of the Retirement
Protection Act of 1994 is amended—
(A) by striking ‘‘transition’’ each place it
appears in the heading and the text, and
(B) by striking ‘‘for any plan year begin-
ning after 1996 and before 2010’’.
(2) SPECIAL RULES.—Paragraph (2) of section
769(c) of the Retirement Protection Act of 1994 is
amended to read as follows:
‘‘(2) SPECIAL RULES.—The rules described in
this paragraph are as follows:
‘‘(A) For purposes of section 412(l)(9)(A)
of the Internal Revenue Code of 1986 and sec-
tion 302(d)(9)(A) of the Employee Retirement
Income Security Act of 1974, the funded cur-
rent liability percentage for any plan year shall
be treated as not less than 90 percent.
‘‘(B) For purposes of section 412(m) of
the Internal Revenue Code of 1986 and section
302(e)(9) of the Employee Retirement Income
Security Act of 1974, the funded current liabil-
ity percentage for any plan year shall be treated
as not less than 100 percent.
‘‘(C) For purposes of determining un-
funded 
vested 
benefits 
under 
section
4006(a)(3)(E)(iii) of the Employee Retirement
Income Security Act of 1974, the mortality
table shall be the mortality table used by the
plan.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to plan years begin-
ning after December 31, 2001.
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