plan pursuant to such terms and conditions as 
shall be satisfactory to the corporation and the 
teamster plan. 
‘‘(3) DISTRESS
TERMINATION.—An employer 
that has an obligation to contribute to a teamster 
plan may terminate its participation in such plan in 
a distress termination by following procedures estab-
lished by the corporation similar to those that apply 
to a plan administrator in a distress termination of 
a single-employer plan under section 4041, including 
meeting the necessary distress criteria under prin-
ciples 
similar 
to 
those 
described 
in 
section 
4041(c)(2)(B). 
‘‘(4) APPLICATION OF CERTAIN TERMINATION 
PROVISIONS.—Upon an employer’s termination of its 
participation in a teamster plan in either a standard 
termination or a distress termination, sections 4044, 
4045, 4046, and 4050 shall apply to the plan ad-
ministrator of such plan in a manner consistent with 
the treatment of such employer as a contributing 
sponsor of a single-employer plan under this subtitle. 
The corporation may institute termination pro-
ceedings against a teamster plan or an employer’s 
participation in a teamster plan under section 4042, 
and the provisions of such section shall be applied
to such termination proceedings in a manner con-
sistent with the treatment of the teamster plan as 
a collection of single-employer plans. 
‘‘(5) CONTRIBUTION
OF
ASSETS
REMAINING 
AFTER STANDARD TERMINATION TO LIABILITIES OF 
OTHER
CONTRIBUTING
EMPLOYERS.—Any assets 
that remain allocated under a teamster plan to an 
employer after the termination of the employer’s 
participation in the plan in a standard termination 
under paragraph (2) shall be applied on a pro rata 
basis toward satisfaction of the benefit liabilities of 
the remaining employers that contribute to the 
teamster plan based on such liabilities. 
‘‘(g) OBLIGATION TO FURNISH INFORMATION.—The 
trustees of a teamster plan shall furnish to each employer 
that has an obligation to contribute to such plan, within 
30 days of an employer’s written request, such reports, 
records, documents, or other information as the employer 
reasonably determines are necessary to enable the em-
ployer to determine the liabilities and assets of the team-
ster plan attributable to such employer and to comply with 
such employer’s funding obligations under section 308. 
The trustees shall be personally liable to an employer for 
any failure to furnish such information required to be fur-
nished under this subsection and may in the court’s discre-
tion be liable to such employer in the amount of up to 
$100 a day from the date of such failure, and the court 
may in its discretion order such other relief as it deems 
proper. In any action under this subsection, the court in 
its discretion may allow a reasonable attorney’s fee and 
costs of action to either party.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of such Act is amended—
(A) by amending the item relating to sec-
tion 4070 to read as follows:
‘‘Sec. 4070. Enforcement authority relating to terminations of single-employer 
plans and teamster plans.’’;
and 
(B) by adding at the end the following new 
items:
‘‘Subtitle G—Special Provisions for Teamster Plans 
‘‘Sec. 4501. Treatment of teamster plans.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2003.
SEC. 3. AMENDMENTS TO THE EMPLOYEE RETIREMENT IN-
COME SECURITY ACT RELATING TO FUNDING 
REQUIREMENTS. 
(a) NOTICE REQUIREMENT RELATING TO FAILURE 
TO
MEET
MINIMUM
FUNDING
STANDARD.—Section 
101(d) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1021(d)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) TEAMSTER PLANS.—For purposes of this 
subsection, effective as of the funding effective date 
(as defined in section 308(b)(11)), a teamster plan 
(as defined in section 4001(a)(22)) shall not be 
treated as a multiemployer plan, and each employer 
that has an obligation to contribute to a teamster 
plan shall be treated as an employer maintaining a 
separate single-employer plan, as provided in section 
308.’’. 
(b) RULE RELATING TO PROHIBITION ON BENEFIT 
INCREASES WHILE SPONSOR IN BANKRUPTCY.—Section 
204(i) of such Act (29 U.S.C. 1054(i)) is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) SPECIAL RULE FOR TEAMSTER PLANS.—
For purposes of this subsection, a teamster plan (as 
defined in section 4001(a)(22)) shall not be treated 
as a multiemployer plan. This subsection shall be 
applied separately with respect to each employer 
that has an obligation to contribute to a teamster 
plan, and the funded current liability percentage for
purposes of paragraph (3) shall be determined in ac-
cordance with section 308.’’. 
(c) SPECIAL
FUNDING
RULES
FOR
TEAMSTER 
PLANS.—
(1) IN GENERAL.—Part 3 of subtitle B of title 
I of such Act is amended—
(A) by redesignating section 308 (29 
U.S.C. 1086) as section 309; and 
(B) by inserting after section 307 (29 
U.S.C. 1085b) the following new section: 
‘‘SEC. 308. TEAMSTER PLANS. 
‘‘(a) IN GENERAL.—For purposes of this part other 
than section 302(d), a teamster plan within the meaning 
of section 4001(a)(22) shall not be treated as a multiem-
ployer plan, and each employer that has an obligation to 
contribute to a teamster plan shall be treated as a contrib-
uting sponsor maintaining a single-employer plan, subject 
to the special rules of subsection (b). 
‘‘(b) SPECIAL RULES.—
‘‘(1) FUNDING STANDARD ACCOUNT.—A fund-
ing standard account shall be established and main-
tained for each employer that has an obligation to 
contribute to a teamster plan. In determining the 
funding standard account under section 302(b) for 
each such employer—
‘‘(A) 
subsections 
(b)(2)(B)(i) 
and 
(b)(2)(B)(ii) of section 302 shall not apply; 
‘‘(B) in the case of a teamster plan in ef-
fect on the first day of the first plan year for 
which this section is effective, the funding 
standard account shall be charged with—
‘‘(i) the amount necessary to amortize 
in equal annual installments (until fully 
amortized) the employer’s unfunded past 
service liability over a period of 30 plan 
years, and 
‘‘(ii) the amount necessary to amor-
tize over a period of 10 plan years in equal 
annual installments (until fully amortized) 
the 
credit 
determined 
under 
section 
308(b)(1)(C)(ii) for the immediately pre-
ceding plan year; and 
‘‘(C) in the case of a teamster plan in ef-
fect on the first day of the first plan year for 
which this section is effective, the funding 
standard account shall be credited with— 
‘‘(i) the amount necessary to amortize 
in equal annual installments (until fully 
amortized) the excess (if any) of the em-
ployer’s initial market value of assets over
the employer’s teamster plan accrued li-
ability determined as of the first day of the 
first plan year for which this section is ef-
fective, over a period of 30 plan years, and 
‘‘(ii) for an employer who has made 
its negotiated contribution for a plan year 
beginning after December 31, 2003, and 
before the funding effective date, the ex-
cess (if any) of—
‘‘(I) the minimum funding re-
quirement determined under this sec-
tion for such plan year, over 
‘‘(II) 
the 
actual 
contribution 
made to the plan for any such plan 
year. 
‘‘(2) VALUATION OF ASSETS.—For purposes of 
section 302(c)(2)(A), the actuarial value of assets of 
a teamster plan as of the first day of the first plan 
year for which this section is effective shall be the 
fair market value of such assets as of such date. The 
value of the assets attributable to each employer 
shall be adjusted annually according to principles of 
master trust accounting for the employer’s plan con-
tributions, investment income (and loss), the employ-
er’s benefit payments with respect to its ongoing li-
ability and transition liability (if any), and the em-
ployer’s share of administrative expenses. Prospec-
tive investment experience may be reflected in ac-
cordance with section 302(c)(2) or any applicable 
regulations issued by the Secretary of the Treasury. 
‘‘(3) ELECTION WITH RESPECT TO BONDS.—
The 
special 
election 
described 
in 
section 
302(c)(2)(B) shall not apply. 
‘‘(4) CERTAIN
RETROACTIVE
PLAN
AMEND-
MENTS.—Notwithstanding any other provision of 
this section, a teamster plan shall be treated as a 
multiemployer 
plan 
for 
purposes 
of 
section 
302(c)(8)(A). 
‘‘(5) BENEFITS MAY NOT BE INCREASED UN-
LESS TEAMSTER PLAN IS SUFFICIENTLY FUNDED.—
In addition to the requirements of section 304(b)(1), 
no amendment of a teamster plan which increases 
the liabilities of the plan with respect to an employer 
by reason of any increase in benefits, any change in 
the accrual of benefits, or any change in the rate at 
which benefits become nonforfeitable under the plan 
shall be adopted and no increase in benefits attrib-
utable to an existing provision of a teamster plan 
(other than an increase that results solely from an 
increase in a participant’s compensation, age or
service or other similar factor), including an increase 
in benefits attributable to an increase in the nego-
tiated contribution, shall take effect unless at the 
time such increase otherwise would be effective—
‘‘(A) the percentage determined by divid-
ing—
‘‘(i) the lesser of the fair market value 
of the assets and the actuarial value of the 
assets attributable to the employer for the 
plan year in which the increase otherwise 
would be effective, by 
‘‘(ii) the employer’s teamster plan cur-
rent liability (determined using the highest 
rate of interest which is allowable for the 
plan year under section 302(d)(7)(C)) for 
the plan year in which the increase other-
wise would be effective, 
is at least 90 percent, and 
‘‘(B) the percentage determined by divid-
ing—
‘‘(i) the amount described in subpara-
graph (A)(i), by 
‘‘(ii) the sum of—
‘‘(I) the amount described in sub-
paragraph (A)(ii), and
‘‘(II) the increase in the present 
value of future service benefits (taking 
into account the amendment or other 
circumstance resulting in such in-
crease), determined using the highest 
rate of interest which is allowable for 
the 
plan 
year 
under 
section 
302(d)(7)C) and the mortality as-
sumptions 
required 
under 
section 
302(d)(7)(C), for the plan year in 
which the increase otherwise would be 
effective. 
is at least 75 percent. 
‘‘(6) ADDITIONAL
FUNDING
REQUIREMENTS 
FOR TEAMSTER PLANS.—
‘‘(A) For any plan year beginning on or 
after January 1, 2004, and before January 1, 
2034, the amount charged to the funding 
standard account for the plan year shall be in-
creased by the amount which, after taking into 
account charges and credits under section 
302(b), is necessary to increase the funded cur-
rent liability percentage at the end of the plan 
year (taking into account the expected change 
in current liability due to benefits and interest
accruing during the plan year, expected dis-
bursements during the plan year, and the 
change in the market value of assets due to in-
terest and expected disbursements during the 
plan year) for the plan year to a percentage 
equal to the sum of—
‘‘(i) the funded current liability per-
centage at the beginning of the plan year, 
and 
‘‘(ii) the lesser of 4 percent or the 
percentage determined by dividing—
‘‘(I) the excess of 90 percent over 
the funded current liability percentage 
as of the beginning of the plan year, 
by 
‘‘(II) 30 minus the number of 
plan years completed since the last 
plan year beginning before January 1, 
2004. 
‘‘(B) For any plan year beginning on or 
after January 1, 2034, the amount charged to 
the funding standard account for the plan year 
shall be increased by the amount which, after 
taking into account charges and credits under 
section 302(b), is necessary to increase the
funded current liability percentage at the end of 
the plan year (taking into account the expected 
change in current liability due to benefits and 
interest accruing during the plan year, expected 
disbursements during the plan year, and the 
change in the market value of assets due to in-
terest and expected disbursements during the 
plan year) for the plan year to the lesser of—
‘‘(i) 90 percent, and 
‘‘(ii) the sum of the funded current li-
ability percentage at the beginning of the 
plan year and 4 percent. 
‘‘(C) The term ‘‘funded current liability 
percentage’’ means, with respect to any em-
ployer for any plan year, the percentage 
which—
‘‘(i) the lesser of the fair market value 
of the assets and the actuarial value of the 
assets attributable to the employer for the 
plan year, is of 
‘‘(ii) the employer’s teamster plan cur-
rent liability. 
‘‘(7) SPECIAL
RULES
FOR
SMALL
TEAMSTER 
PLANS.—
‘‘(A) Paragraph (6) shall not apply to any 
teamster plan for any plan year if on each day 
during the preceding plan year such plan had 
no more than 100 participants. 
‘‘(B) In the case of a teamster plan to 
which subparagraph (A) does not apply and 
which on each day during the preceding plan 
year had no more than 150 participants, the 
amount of the increase under paragraph (6) for 
such plan year shall be equal to the product 
of—
‘‘(i) such increase determined without 
regard to this subparagraph, multiplied by 
‘‘(ii) 2 percent for the highest number 
of participants in excess of 100 on any 
such day. 
‘‘(C) For purposes of this paragraph, all 
teamster plans maintained by the same em-
ployer (or any member of such employer’s con-
trolled group) shall be treated as 1 plan, but 
only employees of such employer or member 
shall be taken into account. 
‘‘(8) BENEFITS MAY NOT BE INCREASED BY 
REASON OF MINIMUM REQUIRED CONTRIBUTION.—A 
teamster plan may not provide for any increase in
a participant’s benefit attributable to an increase in 
the minimum contributions determined under this 
section for any plan year to the extent such min-
imum contributions exceed the negotiated contribu-
tions for such plan year. 
‘‘(9) DEFINITIONS.—For purposes of this sec-
tion—
‘‘(A) UNFUNDED
PAST
SERVICE
LIABIL-
ITY.—The term ‘unfunded past service liability’ 
means, with respect to each employer who, as 
of the first day of the first plan year for which 
this section is effective, has an obligation to 
contribute to a teamster plan, the excess of the 
employer’s teamster plan accrued liability deter-
mined as of such date over the employer’s ini-
tial market value of assets. 
‘‘(B) TEAMSTER PLAN ACCRUED LIABIL-
ITY.—The term ‘teamster plan accrued liability’ 
means, with respect to each employer who has 
an obligation to contribute to a teamster plan, 
the sum of the employer’s transition liability (if 
any) and the employer’s ongoing liability. 
‘‘(C) TRANSITION
LIABILITY.—The term 
‘transition liability’ means, with respect to each 
employer who, as of the first day of the first
plan year for which this section is effective, has 
an obligation to contribute to a teamster plan, 
the product of—
‘‘(i) the sum of 
‘‘(I) the accrued liability for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this section) attributable as of the 
first day of the first plan year for 
which this section is effective to par-
ticipants who as of such date are not 
employed in credited service for any 
employer, and 
‘‘(II) the accrued liability for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this section) attributable as of the 
first day of the first plan year which 
this section is effective to the credited
service of participants (other than 
participants described in (I)) with an 
employer that does not have an obli-
gation to contribute to the teamster 
plan as of such date, and 
‘‘(ii) the percentage determined as of 
the first day of the first plan year for 
which this section is effective by dividing 
the sum of the contributions required to be 
made under such plan by the employer for 
the 5 preceding plan years by the sum of 
the contributions required to be made by 
all such employers for the 5 preceding plan 
years. 
‘‘(D) ONGOING LIABILITY.—The term ‘on-
going liability’ means, with respect to each em-
ployer, the accrued liability for benefits under a 
teamster plan attributable to credited service 
with the employer for those participants who 
are employed in credited service with any em-
ployer at any time on or after the first day of 
the first plan year for which this section is ef-
fective. 
‘‘(E) TEAMSTER PLAN CURRENT LIABIL-
ITY.—The term ‘teamster plan current liability’
means, with respect to each employer who has 
an obligation to contribute to a teamster plan, 
the sum of the employer’s transition current li-
ability (if any) and the employer’s ongoing cur-
rent liability. 
‘‘(F) TRANSITION CURRENT LIABILITY.—
The term ‘transition current liability’ means, 
with respect to each employer who, as of the 
first day of the first plan year for which this 
section is effective, has an obligation to con-
tribute to a teamster plan, the product of—
‘‘(i) the sum of—
‘‘(I) the current liability (as de-
fined under section 302(d)(7)) for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this section) attributable, as of the 
first day of the first plan year for 
which this section is effective, to par-
ticipants who as of such date are not 
employed in credited service for any 
employer, and
‘‘(II) the current liability (as de-
fined under section 302(d)(7)) for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this section) attributable, as of the 
first day of the first plan year for 
which this section is effective section, 
to the credited service of participants 
(other than participants described in 
(I))) with an employer that does not 
have an obligation to contribute to the 
teamster plan as of such date, and 
‘‘(ii) the percentage determined as of 
the first day of the first plan year for 
which this section is effective by dividing 
the sum of the contributions required to be 
made under such plan by the employer for 
the 5 preceding plan years by the sum of 
the contributions required to be made by 
all such employers for the 5 preceding plan 
years.
‘‘(G) ONGOING CURRENT LIABILITY.—The 
term ‘ongoing current liability’ means, with re-
spect to each employer, the current liability (as 
defined under section 302(d)(7)) for benefits 
under a teamster plan attributable to credited 
service with the employer for those participants 
who are employed in credited service with any 
employer at any time on or after the first day 
of the first plan year for which this section is 
effective date of this section. 
‘‘(H) EMPLOYER’S INITIAL MARKET VALUE 
OF ASSETS.—The term ‘employer’s initial mar-
ket value of assets’ means, with respect to each 
employer who (as of the first day of the first 
plan year for which this section is effective) has 
an obligation to contribute to a teamster plan, 
the product, determined as of the first day of 
the first plan year for which this section is ef-
fective, of the funded percentage for the team-
ster plan as of such date and the employer’s 
teamster plan accrued liability as of such date. 
‘‘(I) FUNDED
PERCENTAGE.—The term 
‘funded percentage’ means, for each teamster 
plan, the amount determined by dividing the 
fair market value of the assets of the teamster
plan (as a whole, as if such plan were treated 
as a single multiemployer plan rather than a 
collection of single-employer plans but taking 
into account the rules of this section), including 
receivables, as of the first day of the first plan 
year for which this section is effective, by the 
teamster plan accrued liability for the plan (as 
a whole, as if such plan were treated as a single 
multiemployer plan rather than a collection of 
single-employer plans but taking into account 
the rules of this section) as of such date. 
‘‘(J) ANTICIPATION OF FUTURE BENEFIT 
INCREASES.—For purposes of subparagraphs 
(A), (B), (C), (D), and (I) in determining ac-
crued liability, the funding method of a plan 
shall anticipate benefit increases scheduled to 
take effect during the term of the collective bar-
gaining agreement(s) applicable to the plan. 
‘‘(10) EMPLOYER.—
‘‘(A) For purposes of this section, all em-
ployees of all corporations which are members 
of a controlled group of corporations (within the 
meaning of section 1563(a) of the Internal Rev-
enue Code of 1986, determined without regard 
to section 1563(a)(4) and (e)(3(C) of such
Code) shall be treated as employed by a single 
employer. 
‘‘(B) For purposes of this section, under 
regulations prescribed by the Secretary of the 
Treasury, all employees of trades or businesses 
(whether or not incorporated) which are under 
common control shall be treated as employed by 
a single employer. The regulations prescribed 
under this subparagraph shall be based on prin-
ciples similar to the principles which apply in 
the case of subparagraph (A). 
‘‘(11) EFFECTIVE DATE.—
‘‘(A) IN
GENERAL.—This section shall 
apply to plan years beginning after December 
31, 2003. 
‘‘(B) PERIODS BEFORE FUNDING EFFEC-
TIVE DATE.—
‘‘(i) IN
GENERAL.—Notwithstanding 
any contrary provision, prior to the fund-
ing effective date, an employer shall not be 
required to make the minimum contribu-
tions determined under this section and 
shall not be treated as maintaining a sin-
gle-employer plan for purposes of sub-
sections (e) and (f) of section 302.
‘‘(ii) For purposes of this subpara-
graph, the term ‘funding effective date’ 
means, with respect to each employer, the 
earlier of—
‘‘(I) the date on which the last 
collective bargaining agreement rati-
fied before January 1, 2004 termi-
nates (determined without regard to 
any extension thereof after January 1, 
2004), and 
‘‘(II) January 1, 2009. 
‘‘(iii) SPECIAL
RULE.—An employer 
shall not be treated as having an accumu-
lated funding deficiency prior to the fund-
ing effective date solely by reason of failing 
to make the minimum contributions deter-
mined under this section, provided such 
employer makes its negotiated contribu-
tions.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of such Act is amended by striking 
the item relating to sections 308 and inserting the 
following new items:
‘‘Sec. 308. Teamster plans. 
‘‘Sec. 309. Effective dates.’’.
(d) EFFECTIVE DATE.—Except as otherwise pro-
vided herein, the amendments made by this section shall 
apply to plan years beginning after December 31, 2003.
SEC. 4. CONFORMING AMENDMENTS TO INTERNAL REV-
ENUE CODE OF 1986. 
(a) TEAMSTER PLANS NOT MULTIEMPLOYER PLAN 
FOR PURPOSES OF SECURITY REQUIREMENT.—Section 
401(a)(29) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) TEAMSTER PLANS.—For purposes of 
this paragraph, effective as of the funding effec-
tive date as defined in section 412(o)(10), a 
teamster 
plan 
(as 
defined 
in 
section 
4001(a)(22) of the Employee Retirement In-
come Security Act of 1974) shall not be treated 
as a multiemployer plan, and each employer 
that has an obligation to contribute to a team-
ster plan shall be treated as a contributing 
sponsor maintaining a single-employer plan in 
accordance with section 412(o).’’. 
(b) RULE RELATING TO PROHIBITION ON BENEFIT 
INCREASES WHILE SPONSOR IN BANKRUPTCY.—Section 
401(a)(33) of such Code is amended by redesignating sub-
paragraph (D) as subparagraph (E) and by inserting after 
subparagraph (C) the following new subparagraph: 
‘‘(D) 
SPECIAL
RULE
FOR
TEAMSTER 
PLANS.—For purposes of this paragraph, a 
teamster 
plan 
(as 
defined 
in 
section 
4001(a)(22) of the Employee Retirement In-
come Security Act of 1974) shall not be treated 
as a multiemployer plan. This paragraph shall 
be applied separately with respect to each em-
ployer that has an obligation to contribute to a 
teamster plan, and the funded current liability 
percentage for purposes of subparagraph (B) 
shall be determined in accordance with section 
412(o).’’. 
(c) RULES RELATING TO DEDUCTIBILITY OF CON-
TRIBUTIONS.—
(1) IN GENERAL.—Section 404(a)(1) of such 
Code is amended by adding at the end thereof the 
following subparagraph: 
‘‘(F) 
SPECIAL
RULE
FOR
TEAMSTER 
PLANS.—Notwithstanding any other provision 
of this subchapter, in the case of any teamster 
plan (as defined in section 4001(a)(22) of the 
Employee Retirement Income Security Act of 
1974), the maximum amount deductible under
the limitations of this paragraph for a plan year 
by an employer obligated to make contributions 
to such plan for such year shall not be less than 
the minimum contribution required by such em-
ployer for such year under section 412(o).’’. 
(2) LIMITATION ON DEDUCTIONS WHERE COM-
BINATION OF DEFINED CONTRIBUTION PLAN AND 
DEFINED
BENEFIT
PLAN.—Section 404(a)(7) is 
amended by inserting after subparagraph (D) the 
following new subparagraph: 
‘‘(E) TEAMSTER
PLANS.—Subparagraph 
(A) shall not apply to that portion of the em-
ployer’s contribution to a teamster plan (as de-
fined in section 4001(a)(22) of the Employee 
Retirement Income Security Act of 1974) to the 
extent such contribution is required as a result 
of charges to the funding standard account de-
scribed in section 412(o)(2)(B) or 412(o)(7).’’. 
(d) SPECIAL RULES FOR TEAMSTER PLANS.—Sec-
tion 412 of such Code is amended by adding at the end 
the following new subsection: 
‘‘(o) TEAMSTER PLANS.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion other than subsection (l), a teamster plan (as 
defined in section 4001(a)(22) of the Employee Re-
tirement Income Security Act of 1974) shall not be 
treated as a multiemployer plan, and each employer 
that has an obligation to contribute to a teamster 
plan shall be treated as a contributing sponsor main-
taining a single-employer plan, subject to the special 
rules of this subsection. 
‘‘(2) FUNDING STANDARD ACCOUNT.—A fund-
ing standard account shall be established and main-
tained for each employer that has an obligation to 
contribute to a teamster plan. In determining the 
funding standard account under subsection (b) for 
each such employer—
‘‘(A) 
subsections 
(b)(2)(B)(i) 
and 
(b)(2)(B)(ii) shall not apply; 
‘‘(B) in the case of a teamster plan in ef-
fect on the first day of the first plan year for 
which this subsection is effective, the funding 
standard account shall be charged with—
‘‘(i) the amount necessary to amortize 
in equal annual installments (until fully 
amortized) the employer’s unfunded past 
service liability, over a period of 30 plan 
years, and 
‘‘(ii) the amount necessary to amor-
tize over a period of 10 plan years in equal
annual installments (until fully amortized) 
the 
credit 
determined 
under 
section 
412(o)(2)(C)(ii) for the immediately pre-
ceding plan year; and 
‘‘(C) in the case of a teamster plan in ef-
fect on the first day of the first plan year for 
which this subsection is effective, the funding 
standard account shall be credited with—
‘‘(i) the amount necessary to amortize 
in equal annual installments (until fully 
amortized) the excess (if any) of the em-
ployer’s initial market value of assets over 
the employer’s teamster plan accrued li-
ability determined as of the first day of the 
first plan year for which this subsection is 
effective, over a period of 30 plan years; 
and 
‘‘(ii) for an employer who has made 
its negotiated contribution for a plan year 
beginning after December 31, 2003 and 
before the funding effective date, the ex-
cess (if any) of—
‘‘(I) the minimum funding re-
quirement determined under this sec-
tion for such plan year, over
‘‘(II) 
the 
actual 
contribution 
made to the plan for any such plan 
year. 
‘‘(3) VALUATION OF ASSETS.—For purposes of 
subsection (c)(2)(A), the actuarial value of assets of 
a teamster plan as of the first day of the first plan 
year for which this subsection is effective shall be 
the fair market value of such assets as of such date. 
The value of the assets attributable to each employer 
shall be adjusted annually according to principles of 
master trust accounting for the employer’s plan con-
tributions, investment income (and loss), the employ-
er’s benefit payments with respect to its ongoing li-
ability and transition liability (if any), and the em-
ployer’s share of administrative expenses. Prospec-
tive investment experience may be reflected in ac-
cordance with subsection (c)(2) or any applicable 
regulations issued by the Secretary. 
‘‘(4) ELECTION WITH RESPECT TO BONDS.—
The 
special 
election 
described 
in 
subsection 
(c)(2)(B) shall not apply. 
‘‘(5) CERTAIN
RETROACTIVE
PLAN
AMEND-
MENTS.—Notwithstanding any other provision of 
this subsection, a teamster plan shall be treated as
a multiemployer plan for purposes of subsection 
(c)(8)(A). 
‘‘(6) BENEFITS MAY NOT BE INCREASED UN-
LESS TEAMSTER PLAN IS SUFFICIENTLY FUNDED.—
In addition to the requirements of subsection (f)(1), 
no amendment of a teamster plan which increases 
the liabilities of the plan with respect to an employer 
by reason of any increase in benefits, any change in 
the accrual of benefits, or any change in the rate at 
which benefits become nonforfeitable under the plan 
shall be adopted and no increase in benefits attrib-
utable to an existing provision of a teamster plan 
(other than an increase that results solely from an 
increase in a participant’s compensation, age or 
service or other similar factor), including an increase 
in benefits attributable to an increase in the nego-
tiated contribution, shall take effect unless at the 
time such increase otherwise would be effective—
‘‘(A) the percentage determined by divid-
ing—
‘‘(i) the lesser of the fair market value 
of the assets and the actuarial value of the 
assets attributable to the employer for the 
plan year in which the increase otherwise 
would be effective, by
‘‘(ii) the employer’s teamster plan cur-
rent liability (determined using the highest 
rate of interest which is allowable for the 
plan year under subsection (l)(7)(C)) for 
the plan year in which the increase other-
wise would be effective, 
is at least 90 percent, and 
‘‘(B) the percentage determined by divid-
ing—
‘‘(i) the amount described in subpara-
graph (A)(i), by 
‘‘(ii) the sum of—
‘‘(I) the amount described in sub-
paragraph (A)(ii), and 
‘‘(II) the increase in the present 
value of future service benefits (taking 
into account the amendment or other 
circumstance resulting in such in-
crease), determined using the highest 
rate of interest which is allowable for 
the 
plan 
year 
under 
subsection 
(l)(7)C) and the mortality assump-
tions 
required 
under 
subsection 
(l)(7)(C), for the plan year in which
the increase otherwise would be effec-
tive. 
is at least 75 percent. 
‘‘(7) ADDITIONAL
FUNDING
REQUIREMENTS 
FOR TEAMSTER PLANS.—
‘‘(A) For any plan year beginning on or 
after January 1, 2004, and before January 1, 
2034, the amount charged to the funding 
standard account for the plan year shall be in-
creased by the amount which, after taking into 
account charges and credits under subsection 
(b), is necessary to increase the funded current 
liability percentage at the end of the plan year 
(taking into account the expected change in 
current liability due to benefits and interest ac-
cruing during the plan year, expected disburse-
ments during the plan year, and the change in 
the market value of assets due to interest and 
expected disbursements during the plan year) 
for the plan year to a percentage equal to the 
sum of—
‘‘(i) the funded current liability per-
centage at the beginning of the plan year, 
and
‘‘(ii) the lesser of 4 percent or the 
percentage determined by dividing—
‘‘(I) the excess of 90 percent over 
the funded current liability percentage 
as of the beginning of the plan year, 
by 
‘‘(II) 30 minus the number of 
plan years completed since the last 
plan year beginning before January 1, 
2004. 
‘‘(B) For any plan year beginning on or 
after January 1, 2034, the amount charged to 
the funding standard account for the plan year 
shall be increased by the amount which, after 
taking into account charges and credits under 
subsection (b), is necessary to increase the 
funded current liability percentage at the end of 
the plan year (taking into account the expected 
change in current liability due to benefits and 
interest accruing during the plan year, expected 
disbursements during the plan year, and the 
change in the market value of assets due to in-
terest and expected disbursements during the 
plan year) for the plan year to the lesser of—
‘‘(i) 90 percent, and
‘‘(ii) the sum of the funded current li-
ability percentage at the beginning of the 
plan year and 4 percent. 
‘‘(C) For purposes of this paragraph, the 
term 
‘funded 
current 
liability 
percentage’ 
means, with respect to any plan year, the per-
centage which—
‘‘(i) the lesser of the fair market value 
of the assets and the actuarial value of the 
assets attributable to the employer for the 
plan year, is of 
‘‘(ii) the employer’s teamster plan cur-
rent liability. 
‘‘(8) SPECIAL
RULES
FOR
SMALL
TEAMSTER 
PLANS.—
‘‘(A) Paragraph (7) shall not apply to any 
teamster plan for any plan year if on each day 
during the preceding plan year such plan had 
no more than 100 participants. 
‘‘(B) In the case of a teamster plan to 
which subparagraph (A) does not apply and 
which on each day during the preceding plan 
year had no more than 150 participants, the 
amount of the increase under paragraph (7) for
such plan year shall be equal to the product 
of—
‘‘(i) such increase determined without 
regard to this subparagraph, multiplied by 
‘‘(ii) 2 percent for the highest number 
of participants in excess of 100 on any 
such day. 
‘‘(C) For purposes of this paragraph, all 
teamster plans maintained by the same em-
ployer (or any member of such employer’s con-
trolled group) shall be treated as 1 plan, but 
only employees of such employer or member 
shall be taken into account. 
‘‘(9) BENEFITS MAY NOT BE INCREASED BY 
REASON OF MINIMUM REQUIRED CONTRIBUTION.—A 
teamster plan may not provide for any increase in 
a participant’s benefit attributable to an increase in 
the minimum contributions determined under this 
subsection for any plan year to the extent such min-
imum contributions exceed the negotiated contribu-
tions for such plan year. 
‘‘(10) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) UNFUNDED
PAST
SERVICE
LIABIL-
ITY.—The term ‘unfunded past service liability’
means, with respect to each employer who (as 
of the first day of the first plan year for which 
this subsection is effective) has an obligation to 
contribute to a teamster plan, the excess of the 
employer’s teamster plan accrued liability as of 
such date over the employer’s initial market 
value of assets. 
‘‘(B) TEAMSTER PLAN ACCRUED LIABIL-
ITY.—The term ‘teamster plan accrued liability’ 
means, with respect to each employer who has 
an obligation to contribute to a teamster plan, 
the sum of the employer’s transition liability (if 
any) and the employer’s ongoing liability. 
‘‘(C) TRANSITION
LIABILITY.—The term 
‘transition liability’ means, with respect to each 
employer who, as of the first day of the first 
plan year for which this subsection is effective, 
has an obligation to contribute to a teamster 
plan, the product of—
‘‘(i) the sum of—
‘‘(I) the accrued liability for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but
taking into account the requirements 
of this subsection) attributable, as of 
the first day of the first plan year for 
which this subsection is effective, to 
participants who as of such effective 
date are not employed in credited 
service for any employer, and 
‘‘(II) the accrued liability for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this subsection) attributable as of 
the first day of the first plan year for 
which, this subsection is effective, to 
the credited service of participants 
(other than participants described in 
subclause (I)) with an employer that 
does not have an obligation to con-
tribute to the teamster plan as of 
such date, and 
‘‘(ii) the percentage determined as of 
the first day of the first plan year for 
which this subsection is effective by divid-
ing the sum of the contributions required 
to be made under such plan by the em-
ployer for the 5 preceding plan years by 
the sum of the contributions required to be 
made by all such employers for the 5 pre-
ceding plan years. 
‘‘(D) ONGOING LIABILITY.—The term ‘on-
going liability’ means, with respect to each em-
ployer, the accrued liability for benefits under a 
teamster plan attributable to credited service 
with the employer for those participants who 
are employed in credited service with any em-
ployer at any time on or after the first day of 
the first plan year for which this section is ef-
fective. 
‘‘(E) TEAMSTER PLAN CURRENT LIABIL-
ITY.—The term ‘teamster plan current liability’ 
means, with respect to each employer who has 
an obligation to contribute to a teamster plan, 
the sum of the employer’s transition current li-
ability (if any) and the employer’s ongoing cur-
rent liability. 
‘‘(F) TRANSITION CURRENT LIABILITY.—
The term ‘transition current liability’ means, 
with respect to each employer who, as of the
first day of the first plan year for which this 
subsection is effective, has an obligation to con-
tribute to a teamster plan the product of—
‘‘(i) the sum of—
‘‘(I) the current liability (as de-
fined under subsection (l)(7)) for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this subsection) attributable as of 
the first day of the first plan year for 
which this subsection is effective to 
participants who as of such effective 
date are not employed in credited 
service for any employer, and 
‘‘(II) the current liability (as de-
fined under subsection (l)(7)) for the 
benefits under the plan (as a whole, 
as if such plan were treated as a sin-
gle multiemployer plan rather than a 
collection of single-employer plans but 
taking into account the requirements 
of this subsection) attributable as of
the first day of the first plan year for 
which this subsection is effective to 
the credited service of participants 
(other than participants described in 
subclause (I)) with an employer that 
does not have an obligation to con-
tribute to the teamster plan as of 
such date, and 
‘‘(ii) the percentage determined as of 
the first day of the first plan year for 
which this subsection is effective by divid-
ing the sum of the contributions required 
to be made under such plan by the em-
ployer for the 5 preceding plan years by 
the sum of the contributions required to be 
made by all such employers for the 5 pre-
ceding plan years. 
‘‘(G) ONGOING CURRENT LIABILITY.—The 
term ‘ongoing current liability’ means, with re-
spect to each employer, the current liability (as 
defined under subsection (l)(7)) for benefits 
under a teamster plan attributable to credited 
service with the employer for those participants 
who are employed in credited service with any 
employer at any time on or after the first day
of the first plan year for which this subsection 
is effective. 
‘‘(H) EMPLOYER’S INITIAL MARKET VALUE 
OF ASSETS.—The term ‘employer’s initial mar-
ket value of assets’ means with respect to each 
employer who, as of the first day of the first 
plan year for which this subsection is effective, 
has an obligation to contribute to a teamster 
plan, the product determined as of the first day 
of the first plan year for which this subsection 
is effective of the funded percentage for the 
teamster plan as of such date and the employ-
er’s teamster plan accrued liability as of such 
date. 
‘‘(I) FUNDED
PERCENTAGE.—The term 
‘funded percentage’ means, for each teamster 
plan, the amount determined by dividing—
‘‘(i) the fair market value of the as-
sets of the teamster plan (as a whole, as 
if such plan were treated as a single multi-
employer plan rather than a collection of 
single-employer plans but taking into ac-
count the requirements of this subsection) 
including receivables, as of the first day of
the first plan year for which this sub-
section is effective, by 
‘‘(ii) the teamster plan accrued liabil-
ity for the plan (as a whole, as if such plan 
were treated as a single multiemployer 
plan rather than a collection of single-em-
ployer plans but taking into account the 
requirements of this subsection), as of such 
date. 
‘‘(J) ANTICIPATION OF FUTURE BENEFIT 
INCREASES.—For purposes of subparagraphs 
(A), (B), (C), (D), and (I) in determining ac-
crued liability, the funding method of a plan 
shall anticipate benefit increases scheduled to 
take effect during the term of the collective bar-
gaining agreement(s) applicable to the plan. 
‘‘(11) EFFECTIVE DATE.—
‘‘(A) IN GENERAL.—This subsection shall 
apply to plan years beginning after December 
31, 2003. 
‘‘(B) PERIODS BEFORE FUNDING EFFEC-
TIVE DATE.—
‘‘(i) IN
GENERAL.—Notwithstanding 
any contrary provision, prior to the fund-
ing effective date, an employer shall not be
required to make the minimum contribu-
tions determined under this subsection and 
shall not be treated as maintaining a sin-
gle-employer plan for purposes of sub-
sections (m) and (n). 
‘‘(ii) FUNDING
EFFECTIVE
DATE.—
For purposes of this subparagraph, the 
term ‘funding effective date’ means, with 
respect to each employer, the earlier of—
‘‘(I) the date on which the last 
collective bargaining agreement rati-
fied before January 1, 2004, termi-
nates (determined without regard to 
any extension thereof after January 1, 
2004), or 
‘‘(II) January 1, 2009. 
‘‘(iii) SPECIAL
RULE.—An employer 
shall not be treated as having an accumu-
lated funding deficiency prior to the fund-
ing effective date solely by reason of failing 
to make the minimum contributions deter-
mined under this subsection, provided such 
employer makes its negotiated contribu-
tions.’’.
(e) CERTAIN RULES APPLICABLE TO COLLECTIVELY 
BARGAINED
PLANS
NOT
TO
APPLY
TO
TEAMSTER 
PLANS.—Subsection (b) of section 413 of such Code is 
amended by adding at the end the following new para-
graph: 
‘‘(10) 
TEAMSTER
PLANS.—Notwithstanding 
subsection (a), in the case of a teamster plan within 
the meaning of section 4001(a)(22) of the Employee 
Retirement Income Security Act of 1974, para-
graphs (5), (6), and (7) shall not apply, and—
‘‘(A) the minimum funding standard pro-
vided by section 412 shall be determined in ac-
cordance with subsection (o) of such section, 
‘‘(B) liability for taxes under section 4971 
shall be determined under section 4971(h), and 
‘‘(C) each employer that has an obligation 
to contribute to a teamster plan shall be treated 
as maintaining a single-employer plan in ac-
cordance with section 412(o) for purposes of 
determining the applicable limitation provided 
by section 404(a).’’. 
(f) 
MODIFICATION
OF
CONTROLLED
GROUP 
RULES.—Subsections (b) and (c) of section 414 of such 
Code are each amended by inserting ‘412(o),’ after ‘411,’.
(g) MODIFICATION OF RULES ON MERGER AND CON-
SOLIDATION
OF PLANS, ETC.—Section 414(l) of such 
Code is amended by adding at the end the following new 
paragraph: 
‘‘(3) ASSETS OF TEAMSTER PLANS.—The assets 
allocated to an employer that has an obligation to 
contribute to a teamster plan (as defined in section 
4001(a)(22) of the Employee Retirement Income Se-
curity Act of 1974) shall not be used to pay benefits 
for service of participants with other employers that 
have an obligation to contribute to such plan.’’. 
(h) TEAMSTER PLAN NOT TREATED AS MULTIEM-
PLOYER PLAN UNDER SPECIAL RULES FOR MULTIEM-
PLOYER PLANS.—
(1) IN GENERAL.—Subpart C of part I of sub-
chapter D of chapter 1 of such Code is amended by 
adding at the end the following new section: 
‘‘SEC. 418F. TEAMSTER PLANS. 
‘‘For purposes of this subpart, a teamster plan (as 
defined in section 4001(a)(22) of the Employee Retire-
ment Income Security Act of 1974) shall not be treated 
as a multiemployer plan.’’. 
(2) The table of sections for such subpart C is 
amended by adding at the end the following new 
item:
‘‘Sec. 418F. Teamster plans.’’.
(i) TEAMSTER PLAN NOT TREATED AS MULTIEM-
PLOYER PLAN UNDER TAX ON FAILURE TO MEET MIN-
IMUM FUNDING STANDARDS.—Section 4971 of such Code 
is amended by redesignating subsection (g) as subsection 
(h) and by inserting after subsection (f) the following new 
subsection: 
‘‘(g) TEAMSTER PLANS.—For purposes of this sec-
tion, effective as of the funding effective date as defined 
in section 412(o)(10), a teamster plan (as defined in sec-
tion 4001(a)(22) of the Employee Retirement Income Se-
curity Act of 1974) shall not be treated as a multiemployer 
plan, and each employer that has an obligation to con-
tribute to a teamster plan shall be treated as maintaining 
a single-employer plan in accordance with section 
412(o).’’. 
(j) EFFECTIVE DATE.—Except as otherwise provided 
herein the amendments made by this section shall apply 
to plan years beginning after December 31, 2003.
SEC. 5. AMENDMENTS TO THE LABOR MANAGEMENT RELA-
TIONS ACT, 1947.
(a) REQUIREMENTS RELATING TO LABOR ORGANIZA-
TIONS.—Section 8(a)(2) of the National Labor Relations 
Act (29 U.S.C. 158(a)(2)) is amended by striking ‘‘pay;’’ 
and inserting ‘‘pay: Provided further, That an employer 
shall not be prohibited, in the case of a trust fund that
is part of a plan to which section 308 of the Employee 
Retirement Income Security Act of 1974 or section 412(o) 
of the Internal Revenue Code of 1986 applies, from mak-
ing contributions to the plan, otherwise required under 
part 3 of subtitle B of title I of such Act or under section 
412 of such Code, at the minimum levels required under 
the applicable provisions of such sections 308 and 412(o), 
or from making future contributions to such plan, other-
wise required under such part 3 or such section 412, at 
negotiated levels, with respect to each such future con-
tribution for any period, reduced by the amount by which 
the minimum contribution contributed for any prior con-
tribution period exceeded the negotiated contribution for 
such period.’’. 
(b) REQUIREMENT TO BARGAIN COLLECTIVELY.—
Section 8(a)(5) of such Act (29 U.S.C. 158(a)(5)) is 
amended by striking ‘‘section 9(a).’’ and inserting ‘‘section 
9(a): Provided, That an employer shall not be prohibited, 
in the case of a trust fund that is part of a plan to which 
section 308 of the Employee Retirement Income Security 
Act of 1974 or section 412(o) of the Internal Revenue 
Code of 1986 applies, from making contributions to the 
plan, otherwise required under part 3 of subtitle B of title 
I of such Act or under section 412 of such Code, at the 
minimum levels required under the applicable provisions
of such sections 308 and 412(o), or from making future 
contributions to such plan, otherwise required under such 
part 3 or such section 412, at negotiated levels, with re-
spect to each such future contribution for any period, re-
duced by the amount by which the minimum contribution 
contributed for any prior contribution period exceeded the 
negotiated contribution for such period.’’. 
(c) PROTECTIONS FOR AMOUNTS HELD IN TRUST.—
Section 302(c)(5) of the Labor Management Relations 
Act, 1947 (29 U.S.C. 186(c)(5)) is amended by striking 
‘‘annuities;’’ and inserting ‘‘annuities: ‘‘Provided further, 
That an employer shall not be prohibited, in the case of 
a trust fund that is part of a plan to which section 308 
of the Employee Retirement Income Security Act of 1974 
or section 412(o) of the Internal Revenue Code of 1986 
applies, from making contributions to the plan, otherwise 
required under part 3 of subtitle B of title I of such Act 
or under section 412 of such Code, at the minimum levels 
required under the applicable provisions of such sections 
308 and 412(o), or from making future contributions to 
such plan, otherwise required under such part 3 or such 
section 412, at negotiated levels, with respect to each such 
future contribution for any period, reduced by the amount 
by which the minimum contribution contributed for any
prior contribution period exceeded the negotiated contribu-
tion for such period;’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect January 1, 2004.
Æ