251
mal, or disability retirement benefit under the 
plan (or a death benefit under the plan related 
to a retirement benefit), or 
‘‘(B) to the extent provided in regulations 
of the Secretary, such person is entitled to such 
a benefit under the plan. 
‘‘(10) OBLIGATION TO CONTRIBUTE.—The term 
‘obligation to contribute’ has the meaning provided 
such term under section 4212(a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part III of subchapter D of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 432. Additional funding rules for multiemployer plans in endangered sta-
tus or critical status.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after 2005. 
TITLE III—OTHER INTEREST-
RELATED FUNDING PROVISIONS 
SEC. 301. INTEREST RATE ASSUMPTION FOR DETERMINA-
TION OF LUMP SUM DISTRIBUTIONS. 
(a) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Subparagraph (B) of 
section 205(g)(3) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1055(g)(3)) is amended to 
read as follows:
252
‘‘(B) For purposes of subparagraph (A)—
‘‘(i) The term ‘applicable mortality table’ means 
the mortality table specified for the plan year under 
section 303(f)(3). 
‘‘(ii) The term ‘applicable interest rate’ means 
the adjusted first, second, and third segment rates 
applied under rules similar to the rules of section 
303(f)(2)(B). 
‘‘(iii) For purposes of clause (ii), the adjusted 
first, second, and third segment rates are the first, 
second, and third segment rates which would be de-
termined under section 303(f)(2)(C) if—
‘‘(I) section 303(f)(2)(D)(i) were applied 
by substituting ‘the yields’ for ‘a 3-year weight-
ed average of yields’, and 
‘‘(II) the applicable percentage under sec-
tion 303(f)(2)(G) were determined in accord-
ance with the following table:
‘‘In the case of plan years beginning in:
The applicable 
percentage is:
2006 .......................................................................
20 percent
2007 .......................................................................
40 percent
2008 .......................................................................
60 percent
2009 .......................................................................
80 percent.’’. 
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.—Section 417(e)(3)(A) of the Internal Revenue
253
Code of 1986 is amended by striking clause (ii) and insert-
ing the following: 
‘‘(ii) 
APPLICABLE
MORTALITY 
TABLE.—For purposes of clause (i), the 
term ‘applicable mortality table’ means the 
mortality table specified for the plan under 
section 430(f)(3). 
‘‘(iii) APPLICABLE INTEREST RATE.—
For purposes of clause (i), the term ‘appli-
cable interest rate’ means the adjusted 
first, second, and third segment rates ap-
plied under rules similar to the rules of 
section 430(f)(2)(B). 
‘‘(iv) ADJUSTED FIRST, SECOND, AND 
THIRD SEGMENT RATES.—For purposes of 
clause (iii), the adjusted first, second, and 
third segment rates are the first, second, 
and third segment rates which would be 
determined under section 430(f)(2)(C) if—
‘‘(I) section 430(f)(2)(D)(i) were 
applied by substituting ‘the yields’ for 
‘a 3-year weighted average of yields’, 
and 
‘‘(II) the applicable percentage 
under section 430(f)(2)(G) were de-
254
termined in accordance with the fol-
lowing table:
‘‘In the case of plan years beginning in:
The applicable 
percentage is:
2006 .......................................................................
20 percent
2007 .......................................................................
40 percent
2008 .......................................................................
60 percent
2009 .......................................................................
80 percent.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning after 2005. 
SEC. 302. INTEREST RATE ASSUMPTION FOR APPLYING 
BENEFIT LIMITATIONS TO LUMP SUM DIS-
TRIBUTIONS. 
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
415(b)(2)(E) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(ii) For purposes of adjusting any 
benefit under subparagraph (B) for any 
form 
of 
benefit 
subject 
to 
section 
417(e)(3), the interest rate assumption 
shall not be less than the greater of—
‘‘(I) 5.5 percent, 
‘‘(II) the rate that provides a 
benefit of not more than 105 percent 
of the benefit that would be provided 
if the applicable interest rate (as de-
255
fined in section 417(e)(3)) were the 
interest rate assumption, or 
‘‘(III) the rate specified under 
the plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to distributions made in years 
beginning after 2005. 
TITLE IV—IMPROVEMENTS IN 
PBGC GUARANTEE PROVISIONS 
SEC. 401. INCREASES IN PBGC PREMIUMS. 
(a) FLAT-RATE PREMIUMS.—Section 4006(a)(3) of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1306(a)(3)) is amended—
(1) by striking clause (i) of subparagraph (A) 
and inserting the following: 
‘‘(i) in the case of a single-employer plan—
‘‘(I) for plan years beginning after Decem-
ber 31, 1990, and before January 1, 2008, an 
amount equal to the sum of $19, and 
‘‘(II) for plan years beginning after De-
cember 31, 2007, an amount determined under 
subparagraph (F), 
plus the additional premium (if any) determined 
under subparagraph (E) for each individual who is
256
a participant in such plan during the plan year;’’; 
and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(F)(i) Except as otherwise provided in this subpara-
graph, for purposes of determining the annual premium 
rate payable to the corporation by a single-employer plan 
for basic benefits guaranteed under this title, the amount 
determined under this subparagraph is the greater of $30 
or the adjusted amount determined under clause (ii). 
‘‘(ii) The adjusted amount determined under this 
clause is the product derived by multiplying $30 by the 
ratio of—
‘‘(I) the national average wage index (as de-
fined in section 209(k)(1) of the Social Security Act) 
for the first of the 2 calendar years preceding the 
calendar year before the calendar year in which the 
plan year begins, to 
‘‘(II) the national average wage index (as so de-
fined) for 2006, 
with such product, if not a multiple of $1, being rounded 
to the next higher multiple of $1 where such product is 
a multiple of $0.50 but not of $1, and to the nearest mul-
tiple of $1 in any other case.
257
‘‘(iii) For purposes of determining the annual pre-
mium rate payable to the corporation by a single-employer 
plan for basic benefits guaranteed under this title for any 
plan year beginning after 2007 and before 2012—
‘‘(I) except as provided in subclause (II), the 
premium amount referred to in subparagraph 
(A)(i)(II) for any such plan year is the amount set 
forth in connection with such plan year in the fol-
lowing table:
‘‘If the plan year begins in:
The amount is: 
2008 .......................................................................
$21.20
2009 .......................................................................
$23.40
2010 .......................................................................
$25.60
2011 .......................................................................
$27.80; or 
‘‘(II) if the plan’s funding target attainment 
percentage for the plan year preceding the current 
plan year was less than 80 percent, the premium 
amount referred to in subparagraph (A)(i)(II) for 
such current plan year is the amount set forth in 
connection with such current plan year in the fol-
lowing table:
‘‘If the plan year begins in:
The amount is: 
2008 .......................................................................
$22.67
2009 .......................................................................
$26.33
2010 or 2011 ..........................................................
the amount provided 
under clause (i)
258
‘‘(iv) For purposes of this subparagraph, the term 
‘funding target attainment percentage’ has the meaning 
provided such term in section 303(d)(2).’’. 
(b) RISK-BASED PREMIUMS.—
(1) IN
GENERAL.—Section 4006(a)(3)(E) of 
such Act (29 U.S.C. 1306(a)(3)(E)) is amended—
(A) in clause (ii), by striking ‘‘$9.00’’ and 
inserting ‘‘the greater of $9.00 or the adjusted 
amount determined under clause (iii)’’; 
(B) by redesignating clauses (iii) and (iv) 
as clauses (iv) and (v), respectively; and 
(C) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) The adjusted amount determined under this 
clause is the product derived by multiplying $9.00 by the 
ratio of—
‘‘(I) the national average wage index (as de-
fined in section 209(k)(1) of the Social Security Act) 
for the first of the 2 calendar years preceding the 
calendar year before the calendar year in which the 
plan year begins, to 
‘‘(II) the national average wage index (as so de-
fined) for 2006, 
with such product, if not a multiple of $1.00, being round-
ed to the next higher multiple of $1.00 where such product
259
is a multiple of $0.50 but not of $1.00, and to the nearest 
multiple of $1.00 in any other case.’’. 
(2) CONFORMING
AMENDMENTS
RELATED
TO 
FUNDING RULES FOR SINGLE-EMPLOYER PLANS.—
Section 4006(a)(3)(E) of such Act (as amended by 
paragraph (1)) is amended further—
(A) by striking clause (iv) and inserting 
the following: 
‘‘(iv)(I) For purposes of clause (ii), except as pro-
vided in subclause (II) or (III), the term ‘unfunded bene-
fits’ means, for a plan year, the amount which would be 
the plan’s funding shortfall (as defined in section 
303(c)(4)), if the value of plan assets of the plan were 
equal to the fair market value of such assets and deter-
mined without regard to section 303(e)(1), and only vested 
benefits were taken into account. 
‘‘(II) The interest rate used in valuing vested benefits 
for purposes of subclause (I) shall be equal to the first, 
second, or third segment rate which would be determined 
under section 303(f)(2)(C) if section 303(f)(2)(D)(i) were 
applied by substituting ‘the yields’ for ‘the 3-year weighted 
average of yields’, as applicable under rules similar to the 
rules under section 303(f)(2)(B).’’; and 
(B) by striking clause (iv). 
(3) EFFECTIVE DATES.—
260
(A) The amendments made by paragraph 
(1) shall apply with respect to premiums for 
plan years after 2007. 
(B) The amendments made by paragraph 
(2) shall apply with respect to plan years begin-
ning after 2005. 
TITLE V—DISCLOSURE 
SEC. 501. DEFINED BENEFIT PLAN FUNDING NOTICES. 
(a) APPLICATION OF PLAN FUNDING NOTICE RE-
QUIREMENTS TO ALL DEFINED BENEFIT PLANS.—Sec-
tion 101(f) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1021(f)) is amended—
(1) in the heading, by striking ‘‘MULTIEM-
PLOYER’’; 
(2) in paragraph (1), by striking ‘‘which is a 
multiemployer plan’’; and 
(3) in paragraph (2)(B)(iii), by inserting after 
‘‘plan’’ the following: ‘‘, and a summary of the rules 
governing termination of single-employer plans 
under subtitle C of title IV’’. 
(b) INCLUSION OF STATEMENT OF THE RATIO OF IN-
ACTIVE PARTICIPANTS TO ACTIVE PARTICIPANTS.—Sec-
tion 101(f)(2)(B) of such Act (29 U.S.C. 1021(f)(2)(B)) 
is amended—
261
(1) in clause (iii)(II) (added by subsection 
(a)(3) of this section), by striking ‘‘and’’ at the end; 
(2) in clause (iv), by striking ‘‘apply.’’ and in-
serting ‘‘apply; and’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(v) a statement of the ratio, as of 
the end of the plan year to which the no-
tice relates, of—
‘‘(I) the number of participants 
who are not in covered service under 
the plan and are in pay status under 
the plan or have a nonforfeitable right 
to benefits under the plan, to 
‘‘(II) the number of participants 
who are in covered service under the 
plan.’’. 
(c) COMPARISON OF MONTHLY AVERAGE OF VALUE 
OF PLAN ASSETS
TO PROJECTED CURRENT LIABIL-
ITIES.—Section 101(f)(2)(B) of such Act (29 U.S.C. 
1021(f)(2)(B)) (as amended by the preceding provisions 
of this section) is amended further—
(1) by striking clause (ii) and inserting the fol-
lowing:
262
‘‘(ii) a statement of a reasonable esti-
mate of—
‘‘(I) the value of the plan’s assets 
for the plan year to which the notice 
relates, 
‘‘(II) projected liabilities of the 
plan for the plan year to which the 
notice relates, and 
‘‘(III) the ratio of the estimated 
amount determined under subclause 
(I) to the estimated amount deter-
mined under subclause (II);’’; and 
(2) by adding at the end (after and below 
clause (v)) the following: 
‘‘For purposes of determining a plan’s projected 
liabilities for a plan year under clause (ii)(II), 
such projected liabilities shall be determined by 
projecting forward in a reasonable manner to 
the end of the plan year the liabilities of the 
plan to participants and beneficiaries as of the 
first day of the plan year, taking into account 
any significant events that occur during the 
plan year and that have a material effect on 
such liabilities, including any plan amendments 
in effect for the plan year.’’.
263
(d) STATEMENT OF PLAN’S FUNDING POLICY AND 
METHOD OF ASSET ALLOCATION.—Section 101(f)(2)(B) 
of such Act (as amended by the preceding provisions of 
this section) is amended further—
(1) in clause (iv), by striking ‘‘and’’ at the end; 
(2) in clause (v), by striking the period and in-
serting ‘‘; and’’; and 
(3) by inserting after clause (v) the following 
new clause: 
‘‘(vi) a statement setting forth the 
funding policy of the plan and the asset al-
location of investments under the plan (ex-
pressed as percentages of total assets) as 
of the end of the plan year to which the 
notice relates.’’. 
(e) NOTICE OF FUNDING IMPROVEMENT PLAN OR 
REHABILITATION PLAN ADOPTED BY MULTIEMPLOYER 
PLAN.—Section 101(f)(2)(B) of such Act (as amended by 
the preceding provisions of this section) is amended fur-
ther—
(1) in clause (v), by striking ‘‘and’’ at the end; 
(2) in clause (vi), by striking the period and in-
serting ‘‘; and’’; and 
(3) by inserting after clause (vi) the following 
new clause:
264
‘‘(vii) a summary of any funding im-
provement plan, rehabilitation plan, or 
modification thereof adopted under section 
305 during the plan year to which the no-
tice relates.’’. 
(f) NOTICE PROVIDED TO ALTERNATE PAYEES.—
Section 101(f)(1) of such Act (29 U.S.C. 1021(f)(1)) is 
amended by adding at the end the following new sentence: 
‘‘For purposes of this paragraph, the term ‘beneficiary’ 
includes an alternate payee (within the meaning of section 
206(d)(3)(K)) under an applicable qualified domestic rela-
tions 
order 
(within 
the 
meaning 
of 
section 
206(d)(3)(B)(i)) receiving benefits under the plan.’’. 
(g) NOTICE DUE 90 DAYS AFTER PLAN’S VALU-
ATION DATE.—Section 101(f)(3) of such Act (29 U.S.C. 
1021(f)(3)) is amended by striking ‘‘two months after the 
deadline (including extensions) for filing the annual report 
for the plan year’’ and inserting ‘‘90 days after the end 
of the plan year’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2005.
265
SEC. 502. ADDITIONAL DISCLOSURE REQUIREMENTS. 
(a) ADDITIONAL ANNUAL REPORTING REQUIRE-
MENTS.—Section 103 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1023) is amended—
(1) in subsection (a)(1)(B), by striking ‘‘sub-
sections (d) and (e)’’ and inserting ‘‘subsections (d), 
(e), and (f)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(f)(1) With respect to any defined benefit plan, an 
annual report under this section for a plan year shall in-
clude the following: 
‘‘(A)(i) The ratio of the number of inactive par-
ticipants under the plan as of the end of such plan 
year to the number of active participants as of the 
end of such plan year. 
‘‘(ii) For purposes of clause (i)—
‘‘(I) the term ‘active participant’ means an 
individual who is in covered service under the 
plan, and 
‘‘(II) the term ‘inactive participant’ means 
an individual who is not in covered service 
under the plan who is in pay status under the 
plan or has a nonforfeitable right to benefits 
under the plan.
266
‘‘(B) In any case in which any liabilities to par-
ticipants or their beneficiaries under such plan as of 
the end of such plan year consist (in whole or in 
part) of liabilities to such participants and bene-
ficiaries borne by 2 or more pension plans as of im-
mediately before such plan year, the funded ratio of 
each of such 2 or more pension plans as of imme-
diately before such plan year and the funded ratio 
of the plan with respect to which the annual report 
is filed as of the end of such plan year. 
‘‘(C) For purposes of this paragraph, the term 
‘funded ratio’ means, in connection with a plan, the 
percentage which—
‘‘(i) the value of the plan’s assets is of 
‘‘(ii) the liabilities to participants and 
beneficiaries under the plan. 
‘‘(2) With respect to any defined benefit plan which 
is a multiemployer plan, an annual report under this sec-
tion for a plan year shall include the following: 
‘‘(A) The number of employers obligated to con-
tribute to the plan as of the end of such plan year. 
‘‘(B) The number of participants under the 
plan on whose behalf no employer contributions have 
been made to the plan for such plan year. For pur-
poses of this subparagraph, the term ‘employer con-
267
tribution’ means, in connection with a participant, a 
contribution made by an employer as an employer of 
such participant.’’. 
(b) ADDITIONAL INFORMATION IN ANNUAL ACTU-
ARIAL STATEMENT REGARDING PLAN RETIREMENT PRO-
JECTIONS.—Section 103(d) of such Act (29 U.S.C. 
1023(d)) is amended—
(1) by redesignating paragraphs (12) and (13) 
as paragraphs (13) and (14), respectively; and 
(2) by inserting after paragraph (11) the fol-
lowing new paragraph: 
‘‘(12) A statement explaining the actuarial as-
sumptions and methods used in projecting future re-
tirements and asset distributions under the plan.’’. 
(c) SUMMARY ANNUAL REPORT FILED WITHIN 15 
DAYS AFTER DEADLINE FOR FILING OF ANNUAL RE-
PORT.—Section 104(b)(3) of such Act (29 U.S.C. 
1024(b)(3)) is amended—
(1) by striking ‘‘Within 210 days after the close 
of the fiscal year,’’ and inserting ‘‘Within 15 busi-
ness days after the due date under subsection (a)(1) 
for the filing of the annual report for the fiscal year 
of the plan’’; and 
(2) by striking ‘‘the latest’’ and inserting 
‘‘such’’.
268
(d) INFORMATION MADE AVAILABLE TO PARTICI-
PANTS, BENEFICIARIES, AND EMPLOYERS WITH RESPECT 
TO MULTIEMPLOYER PLANS.—
(1) IN GENERAL.—Section 101 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1021) is amended—
(A) by redesignating subsection (j) as sub-
section (k); and 
(B) by inserting after subsection (i) the 
following new subsection: 
‘‘(j) MULTIEMPLOYER PLAN INFORMATION MADE 
AVAILABLE ON REQUEST.—
‘‘(1) IN
GENERAL.—Each administrator of a 
multiemployer plan shall furnish to any plan partici-
pant or beneficiary or any employer having an obli-
gation to contribute to the plan, who so requests in 
writing—
‘‘(A) a copy of any actuary report received 
by the plan for any plan year which has been 
in receipt by the plan for at least 30 days, and 
‘‘(B) a copy of any financial report pre-
pared for the plan by any plan investment man-
ager or advisor or other person who is a plan 
fiduciary which has been in receipt by the plan 
for at least 30 days.
269
‘‘(2) COMPLIANCE.—Information required to be 
provided under paragraph (1) —
‘‘(A) shall be provided to the requesting 
participant, beneficiary, or employer within 30 
days after the request in a form and manner 
prescribed in regulations of the Secretary, and 
‘‘(B) may be provided in written, elec-
tronic, or other appropriate form to the extent 
such form is reasonably accessible to persons to 
whom the information is required to be pro-
vided. 
‘‘(3) LIMITATIONS.—In no case shall a partici-
pant, beneficiary, or employer be entitled under this 
subsection to receive more than one copy of any re-
port described in paragraph (1) during any one 12-
month period. The administrator may make a rea-
sonable charge to cover copying, mailing, and other 
costs of furnishing copies of information pursuant to 
paragraph (1). The Secretary may by regulations 
prescribe the maximum amount which will constitute 
a reasonable charge under the preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) is amended by inserting 
‘‘or 101(j)’’ after ‘‘101(f)(1)’’.
270
(3) REGULATIONS.—The Secretary shall pre-
scribe regulations under section 101(j)(2) of the 
Employee Retirement Income Security Act of 1974 
(added by paragraph (1) of this subsection) not later 
than 90 days after the date of the enactment of this 
Act. 
(e) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY 
TO MULTIEMPLOYER PLANS.—
(1) IN GENERAL.—Section 101 of such Act (as 
amended by subsection (e) of this section) is amend-
ed further—
(A) by redesignating subsection (k) as sub-
section (l); and 
(B) by inserting after subsection (j) the 
following new subsection: 
‘‘(k) NOTICE OF POTENTIAL WITHDRAWAL LIABIL-
ITY.—
‘‘(1) IN GENERAL.—The plan sponsor or ad-
ministrator shall furnish to any employer who has 
an obligation to contribute under the plan and who 
so requests in writing notice of—
‘‘(A) the amount which would be the 
amount of such employer’s withdrawal liability 
under part 1 of subtitle E of title IV if such
271
employer withdrew on the last day of the plan 
year preceding the date of the request, and 
‘‘(B) the average increase, per participant 
under the plan, in accrued liabilities under the 
plan as of the end of such plan year to partici-
pants under such plan on whose behalf no em-
ployer contributions are payable (or their bene-
ficiaries), which would be attributable to such a 
withdrawal by such employer. 
For purposes of subparagraph (B), the term ‘em-
ployer contribution’ means, in connection with a par-
ticipant, a contribution made by an employer as an 
employer of such participant. 
‘‘(2) COMPLIANCE.—Any notice required to be 
provided under paragraph (1)—
‘‘(A) shall be provided to the requesting 
employer within 180 days after the request in 
a form and manner prescribed in regulations of 
the Secretary, and 
‘‘(B) may be provided in written, elec-
tronic, or other appropriate form to the extent 
such form is reasonably accessible to employers 
to whom the information is required to be pro-
vided.
272
‘‘(3) LIMITATIONS.—In no case shall an em-
ployer be entitled under this subsection to receive 
more than one notice described in paragraph (1) 
during any one 12-month period. The person re-
quired to provide such notice may make a reasonable 
charge to cover copying, mailing, and other costs of 
furnishing such notice pursuant to paragraph (1). 
The Secretary may by regulations prescribe the max-
imum amount which will constitute a reasonable 
charge under the preceding sentence.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2005. 
SEC. 503. NOTICE TO PARTICIPANTS AND BENEFICIARIES 
OF SECTION 4010 FILINGS WITH THE PBGC. 
(a) IN GENERAL.—Section 4010 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1310) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) 
NOTICE
TO
PARTICIPANTS
AND
BENE-
FICIARIES.—
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the submission by any person to the corpora-
tion of information or documentary material with re-
spect to any plan pursuant to subsection (a), such
273
person shall provide notice of such submission to 
each participant and beneficiary under the plan (and 
under all plans maintained by members of the con-
trolled group of each contributing sponsor of the 
plan). Such notice shall also set forth—
‘‘(A) the number of single-employer plans 
covered by this title which are in at-risk status 
and are maintained by contributing sponsors of 
such plan (and by members of their controlled 
groups) with respect to which the funding tar-
get attainment percentage for the preceding 
plan year of each plan is less than 60 percent; 
‘‘(B) the value of the assets of each of the 
plans described in subparagraph (A) for the 
plan year, the funding target for each of such 
plans for the plan year, and the funding target 
attainment percentage of each of such plans for 
the plan year; and 
‘‘(C) taking into account all single-em-
ployer plans maintained by the contributing 
sponsor and the members of its controlled 
group as of the end of such plan year—
‘‘(i) the aggregate total of the values 
of plan assets of such plans as of the end 
of such plan year,
274
‘‘(ii) the aggregate total of the fund-
ing targets of such plans, as of the end of 
such plan year, taking into account only 
benefits to which participants and bene-
ficiaries have a nonforfeitable right, and 
‘‘(iii) the aggregate funding targets 
attainment percentage with respect to the 
contributing sponsor for the preceding plan 
year. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) VALUE OF PLAN ASSETS.—The term 
‘value of plan assets’ means the value of plan 
assets, as determined under section 303(a)(2). 
‘‘(B) FUNDING TARGET.—The term ‘fund-
ing target’ has the meaning provided under sec-
tion 303(d)(1). 
‘‘(C) FUNDING TARGET ATTAINMENT PER-
CENTAGE.—The term ‘funding target attain-
ment percentage’ has the meaning provided in 
section 303(d)(2). 
‘‘(D) AGGREGATE
FUNDING
TARGET
AT-
TAINMENT PERCENTAGE.—The term ‘aggregate 
funding targets attainment percentage’ with re-
spect to a contributing sponsor for a plan year
275
is the percentage, taking into account all plans 
maintained by the contributing sponsor and the 
members of its controlled group as of the end 
of such plan year, which 
‘‘(i) the aggregate total of the values 
of plan assets, as of the end of such plan 
year, of such plans, is of 
‘‘(ii) the aggregate total of the fund-
ing targets of such plans, as of the end of 
such plan year, taking into account only 
benefits to which participants and bene-
ficiaries have a nonforfeitable right. 
‘‘(E) AT-RISK STATUS.—The term ‘at-risk 
status’ has the meaning provided in section 
303(h)(3). 
‘‘(3) COMPLIANCE.—
‘‘(A) IN GENERAL.—Any notice required to 
be provided under paragraph (1) may be pro-
vided in written, electronic, or other appropriate 
form to the extent such form is reasonably ac-
cessible to individuals to whom the information 
is required to be provided. 
‘‘(B) LIMITATIONS.—In no case shall a 
participant or beneficiary be entitled under this 
subsection to receive more than one notice de-
276
scribed in paragraph (1) during any one 12-
month period. The person required to provide 
such notice may make a reasonable charge to 
cover copying, mailing, and other costs of fur-
nishing such notice pursuant to paragraph (1). 
The corporation may by regulations prescribe 
the maximum amount which will constitute a 
reasonable charge under the preceding sen-
tence.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to plan years begin-
ning after 2006. 
TITLE VI—INVESTMENT ADVICE 
SEC. 601. AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974 PROVIDING 
PROHIBITED TRANSACTION EXEMPTION FOR 
PROVISION OF INVESTMENT ADVICE. 
(a) 
EXEMPTION
FROM
PROHIBITED
TRANS-
ACTIONS.—Section 408(b) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1108(b)) is 
amended by adding at the end the following new para-
graph: 
‘‘(14)(A) Any transaction described in subpara-
graph (B) in connection with the provision of invest-
277
ment advice described in section 3(21)(A)(ii), in any 
case in which—
‘‘(i) the investment of assets of the plan is 
subject to the direction of plan participants or 
beneficiaries, 
‘‘(ii) the advice is provided to the plan or 
a participant or beneficiary of the plan by a fi-
duciary adviser in connection with any sale, ac-
quisition, or holding of a security or other prop-
erty for purposes of investment of plan assets, 
and 
‘‘(iii) the requirements of subsection (g) 
are met in connection with the provision of the 
advice. 
‘‘(B) The transactions described in this sub-
paragraph are the following: 
‘‘(i) the provision of the advice to the plan, 
participant, or beneficiary; 
‘‘(ii) the sale, acquisition, or holding of a 
security or other property (including any lend-
ing of money or other extension of credit associ-
ated with the sale, acquisition, or holding of a 
security or other property) pursuant to the ad-
vice; and
278
‘‘(iii) the direct or indirect receipt of fees 
or other compensation by the fiduciary adviser 
or an affiliate thereof (or any employee, agent, 
or registered representative of the fiduciary ad-
viser or affiliate) in connection with the provi-
sion of the advice or in connection with a sale, 
acquisition, or holding of a security or other 
property pursuant to the advice.’’. 
(b) REQUIREMENTS.—Section 408 of such Act is 
amended further by adding at the end the following new 
subsection: 
‘‘(g) REQUIREMENTS RELATING TO PROVISION OF 
INVESTMENT ADVICE BY FIDUCIARY ADVISERS.—
‘‘(1) IN GENERAL.—The requirements of this 
subsection are met in connection with the provision 
of 
investment 
advice 
referred 
to 
in 
section 
3(21)(A)(ii), provided to an employee benefit plan or 
a participant or beneficiary of an employee benefit 
plan by a fiduciary adviser with respect to the plan 
in connection with any sale, acquisition, or holding 
of a security or other property for purposes of in-
vestment of amounts held by the plan, if—
‘‘(A) in the case of the initial provision of 
the advice with regard to the security or other 
property by the fiduciary adviser to the plan,