324
‘‘(C) the exchange rate used by the bank 
or broker-dealer for a particular foreign ex-
change transaction may not deviate by more 
than 3 percent from the interbank bid and 
asked rates at the time of the transaction as 
displayed on an independent service that re-
ports rates of exchange in the foreign currency 
market for such currency.’’. 
(g) DEFINITION OF PLAN ASSET VEHICLE.—Section 
3 of such Act (29 U.S.C. 1002) is amended by adding 
at the end the following new paragraph: 
‘‘(42) the term ‘plan assets’ means plan assets as de-
fined by such regulations as the Secretary may prescribe, 
except that under such regulations the assets of any entity 
shall not be treated as plan assets if, immediately after 
the most recent acquisition of any equity interest in the 
entity, less than 50 percent of the total value of each class 
of equity interest in the entity is held by employee benefit 
plan investors. For purposes of determinations pursuant 
to this paragraph, the value of any equity interest owned 
by a person (other than such an employee benefit plan) 
who has discretionary authority or control with respect to 
the assets of the entity or any person who provides invest-
ment advice for a fee (direct or indirect) with respect to 
such assets, or any affiliate of such a person, shall be dis-
325
regarded for purposes of calculating the 50 percent 
threshold. An entity shall be considered to hold plan assets 
only to the extent of the percentage of the equity interest 
owned by benefit plan investors. For purposes of this para-
graph, the term ‘benefit plan investor’ means an employee 
benefit plan subject to this part and any plan to which 
section 4975 of the Internal Revenue Code of 1986 ap-
plies.’’. 
SEC. 306. CORRECTION PERIOD FOR CERTAIN TRANS-
ACTIONS INVOLVING SECURITIES AND COM-
MODITIES. 
(a) AMENDMENT OF EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 408(b) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1108(b)), as amended by sections 304 and 601, 
is further amended by adding at the end the following new 
paragraph: 
‘‘(19)(A) Except as provided in subparagraphs 
(B) and (C), a transaction described in section 
406(a) in connection with the acquisition, holding, 
or disposition of any security or commodity, if the 
transaction is corrected before the end of the correc-
tion period. 
‘‘(B) Subparagraph (A) does not apply to any 
transaction between a plan and a plan sponsor or its
326
affiliates that involves the acquisition or sale of an 
employer security (as defined in section 407(d)(1)) 
or the acquisition, sale, or lease of employer real 
property (as defined in section 407(d)(2)). 
‘‘(C) In the case of any fiduciary or other party 
in interest (or any other person knowingly partici-
pating in such transaction), subparagraph (A) does 
not apply to any transaction if, at the time the 
transaction occurs, such fiduciary or party in inter-
est (or other person) knew (or reasonably should 
have known) that the transaction would (without re-
gard to this paragraph) constitute a violation of sec-
tion 406(a). 
‘‘(D) For purposes of this paragraph, the term 
‘correction period’ means, in connection with a fidu-
ciary or party in interest (or other person knowingly 
participating in the transaction), the 14-day period 
beginning on the date on which such fiduciary or 
party in interest (or other person) discovers, or rea-
sonably should have discovered, that the transaction 
would (without regard to this paragraph) constitute 
a violation of section 406(a). 
‘‘(E) For purposes of this paragraph—
‘‘(i) The term ‘security’ has the meaning 
given such term by section 475(c)(2) of the In-
327
ternal Revenue Code of 1986 (without regard to 
subparagraph (F)(iii) and the last sentence 
thereof). 
‘‘(ii) The term ‘commodity’ has the mean-
ing given such term by section 475(e)(2) of 
such Code (without regard to subparagraph 
(D)(iii) thereof). 
‘‘(iii) The term ‘correct’ means, with re-
spect to a transaction—
‘‘(I) to undo the transaction to the ex-
tent possible and in any case to make good 
to the plan or affected account any losses 
resulting from the transaction, and 
‘‘(II) to restore to the plan or affected 
account any profits made through the use 
of assets of the plan.’’. 
(b) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—
(1) IN
GENERAL.—Subsection (d) of section 
4975 of the Internal Revenue Code of 1986 (relating 
to exemptions), as amended by this Act, is amended 
by striking ‘‘or’’ at the end of paragraph (16), by 
striking the period at the end of paragraph (17) and 
inserting ‘‘, or’’, and by adding at the end the fol-
lowing new paragraph:
328
‘‘(18) except as provided in subsection (f)(9), a 
transaction described in subparagraph (A), (B), (C), 
or (D) of subsection (c)(1) in connection with the 
acquisition, holding, or disposition of any security or 
commodity, if the transaction is corrected before the 
end of the correction period.’’. 
(2) SPECIAL RULES RELATING TO CORRECTION 
PERIOD.—Subsection (f) of section 4975 of such 
Code (relating to other definitions and special rules), 
as amended by this Act, is amended by adding at 
the end the following new paragraph: 
‘‘(9) CORRECTION PERIOD.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (d)(18), the term ‘correction period’ 
means the 14-day period beginning on the date 
on which the disqualified person discovers, or 
reasonably should have discovered, that the 
transaction would (without regard to this para-
graph and subsection (d)(18)) constitute a pro-
hibited transaction. 
‘‘(B) EXCEPTIONS.—
‘‘(i) EMPLOYER
SECURITIES.—Sub-
section (d)(18) does not apply to any 
transaction between a plan and a plan 
sponsor or its affiliates that involves the
329
acquisition or sale of an employer security 
(as defined in section 407(d)(1)) or the ac-
quisition, sale, or lease of employer real 
property (as defined in section 407(d)(2)). 
‘‘(ii) KNOWING
PROHIBITED
TRANS-
ACTION.—In the case of any disqualified 
person, subsection (d)(18) does not apply 
to a transaction if, at the time the trans-
action is entered into, the disqualified per-
son knew (or reasonably should have 
known) that the transaction would (with-
out regard to this paragraph) constitute a 
prohibited transaction. 
‘‘(C) ABATEMENT OF TAX WHERE THERE 
IS
A
CORRECTION.—If a transaction is not 
treated as a prohibited transaction by reason of 
subsection (d)(18), then no tax under sub-
section (a) and (b) shall be assessed with re-
spect to such transaction, and if assessed the 
assessment shall be abated, and if collected 
shall be credited or refunded as an overpay-
ment. 
‘‘(D) DEFINITIONS.—For purposes of this 
paragraph and subsection (d)(18)—
330
‘‘(i) SECURITY.—The term ‘security’ 
has the meaning given such term by sec-
tion 475(c)(2) (without regard to subpara-
graph (F)(iii) and the last sentence there-
of). 
‘‘(ii) COMMODITY.—The term ‘com-
modity’ has the meaning given such term 
by section 475(e)(2) (without regard to 
subparagraph (D)(iii) thereof). 
‘‘(iii) CORRECT.—The term ‘correct’ 
means, with respect to a transaction—
‘‘(I) to undo the transaction to 
the extent possible and in any case to 
make good to the plan or affected ac-
count any losses resulting from the 
transaction, and 
‘‘(II) to restore to the plan or af-
fected account any profits made 
through the use of assets of the 
plan.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any transaction which the fidu-
ciary or disqualified person discovers, or reasonably should 
have discovered, after the date of the enactment of this 
Act constitutes a prohibited transaction.
331
SEC. 307. RECOVERY BY REIMBURSEMENT OR SUBROGA-
TION WITH RESPECT TO PROVIDED BENE-
FITS. 
(a) IN GENERAL.—Section 502(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1132(a)) is amended by adding, after and below para-
graph (9), the following new sentence: 
‘‘Actions described under paragraph (3) include an action 
by a fiduciary for recovery of amounts on behalf of the 
plan enforcing terms of the plan that provide a right of 
recovery by reimbursement or subrogation with respect to 
benefits provided to or for a participant or beneficiary.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on January 1, 2006. 
SEC. 308. EXERCISE OF CONTROL OVER PLAN ASSETS IN 
CONNECTION WITH QUALIFIED CHANGES IN 
INVESTMENT OPTIONS. 
(a) IN GENERAL.—Section 404(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1104(c)) is amended by adding at the end the following 
new paragraph: 
‘‘(4)(A) In any case in which a qualified change in 
investment options occurs in connection with an individual 
account plan, a participant or beneficiary shall not be 
treated for purposes of paragraph (1) as not exercising 
control over the assets in his account in connection with
332
such change if the requirements of subparagraph (C) are 
met in connection with such change. 
‘‘(B) For purposes of subparagraph (A), the term 
‘qualified change in investment options’ means, in connec-
tion with an individual account plan, a change in the in-
vestment options offered to the participant or beneficiary 
under the terms of the plan, under which—
‘‘(i) the participant’s account is reallocated 
among one or more new investment options which 
are offered in lieu of one or more investment options 
offered immediately prior to the effective date of the 
change, and 
‘‘(ii) the characteristics of the new investment 
options, including characteristics relating to risk and 
rate of return, are, as of immediately after the 
change, reasonably similar to those of the existing 
investment options as of immediately before the 
change. 
‘‘(C) The requirements of this subparagraph are met 
in connection with a qualified change in investment op-
tions if—
‘‘(i) at least 60 days prior to the effective date 
of the change, the plan administrator furnishes writ-
ten notice of the change to the participants and 
beneficiaries, including information comparing the
333
existing and new investment options and an expla-
nation that, in the absence of affirmative investment 
instructions from the participant or beneficiary to 
the contrary, the account of the participant or bene-
ficiary will be invested in the manner described in 
subparagraph (B), 
‘‘(ii) the participant has not provided to the 
plan administrator, in advance of the effective date 
of the change, affirmative investment instructions 
contrary to the change, and 
‘‘(iii) the investments under the plan of the par-
ticipant or beneficiary as in effect immediately prior 
to the effective date of the change was the product 
of the exercise by such participant or beneficiary of 
control over the assets of the account within the 
meaning of paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to changes in in-
vestment options taking effect on or after January 1, 
2006. 
SEC. 309. CLARIFICATION OF FIDUCIARY RULES. 
Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Labor shall issue final regula-
tions clarifying that the selection of an annuity contract
334
as an optional form of distribution from an individual ac-
count plan to a participant or beneficiary—
(1) is not subject to the safest available annuity 
standard under Interpretive Bulletin 95–1 (29 
C.F.R. 2509.95–1), and 
(2) is subject to all otherwise applicable fidu-
ciary standards. 
SEC. 310. GOVERNMENT ACCOUNTABILITY OFFICE PEN-
SION FUNDING REPORT. 
(a) IN GENERAL.—The Comptroller General of the 
Government Accountability Office shall transmit to the 
Congress a pension funding report not later than one year 
after the date of the enactment of this Act. 
(b) REPORT CONTENT.—The pension funding report 
required under subsection (a) shall include an analysis of 
the feasibility, advantages, and disadvantages of—
(1) requiring an employee pension benefit plan 
to insure a portion of such plan’s total investments; 
(2) requiring an employee pension benefit plan 
to adhere to uniform solvency standards set by the 
Pension Benefit Guaranty Corporation, which are 
similar to those applied on a State level in the insur-
ance industry; and 
(3) amortizing a single-employer defined benefit 
pension plan’s shortfall amortization base (referred
335
to in section 303(c)(3) of the Employee Retirement 
Income Security Act of 1974 (as amended by this 
Act)) over various periods of not more than 7 years. 
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, an 
amount equal to—
‘‘(I) for plan years beginning after Decem-
ber 31, 1990, and before January 1, 2006, $19, 
or 
‘‘(II) for plan years beginning after De-
cember 31, 2005, the amount determined under 
subparagraph (F), 
plus the additional premium (if any) determined 
under subparagraph (E) for each individual who is 
a participant in such plan during the plan year;’’; 
and 
(2) by adding at the end the following new sub-
paragraph:
336
‘‘(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) For plan years beginning after 2006, the ad-
justed 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 in which the plan year begins, to 
‘‘(II) the national average wage index (as so de-
fined) for 2004, 
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. 
‘‘(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 2005 and before 2010—
‘‘(I) except as provided in subclause (II), the 
premium amount referred to in subparagraph
337
(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: 
2006 .......................................................................
$21.20
2007 .......................................................................
$23.40
2008 .......................................................................
$25.60
2009 .......................................................................
$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:
2006 .......................................................................
$22.67
2007 .......................................................................
$26.33
2008 or 2009 ..........................................................
the amount provided 
under clause (i). 
‘‘(iv) For purposes of this subparagraph, the term 
‘funding target attainment percentage’ has the meaning 
provided such term in section 303(d)(2).’’. 
(b) PREMIUM RATE FOR CERTAIN TERMINATED SIN-
GLE-EMPLOYER PLANS.—Subsection (a) of section 4006 
of such Act (29 U.S.C. 1306) is amended by adding at 
the end the following:
338
‘‘(7) PREMIUM RATE FOR CERTAIN TERMINATED 
SINGLE-EMPLOYER PLANS.—
‘‘(A) IN GENERAL.—If there is a termination of 
a single-employer plan under clause (ii) or (iii) of 
section 4041(c)(2)(B) or section 4042, there shall be 
payable to the corporation, with respect to each ap-
plicable 12-month period, a premium at a rate equal 
to $1,250 multiplied by the number of individuals 
who were participants in the plan immediately before 
the termination date. Such premium shall be in ad-
dition to any other premium under this section. 
‘‘(B) SPECIAL RULE FOR PLANS TERMINATED 
IN BANKRUPTCY REORGANIZATION.—If the plan is 
terminated under 4041(c)(2)(B)(ii) or under section 
4042 and, as of the termination date, a person who 
is (as of such date) a contributing sponsor of the 
plan or a member of such sponsor’s controlled group 
has filed or has had filed against such person a peti-
tion seeking reorganization in a case under title 11 
of the United States Code, or under any similar law 
of a State or a political subdivision of a State (or 
a case described in section 4041(c)(2)(B)(i) filed by 
or against such person has been converted, as of 
such date, to such a case in which reorganization is 
sought), subparagraph (A) shall not apply to such
339
plan until the date of the discharge of such person 
in such case. 
‘‘(C) APPLICABLE
12-MONTH
PERIOD.—For 
purposes of subparagraph (A)—
‘‘(i) IN
GENERAL.—The term ‘applicable 
12-month period’ means—
‘‘(I) the 12-month period beginning 
with the first month following the month 
in which the termination date occurs, and 
‘‘(II) each of the first two 12-month 
periods immediately following the period 
described in subclause (I). 
‘‘(ii) PLANS TERMINATED IN BANKRUPTCY 
REORGANIZATION.—In any case in which the 
requirements of subparagraph (B) are met in 
connection with the termination of the plan 
with respect to 1 or more persons described in 
such subparagraph, the 12-month period de-
scribed in clause (i)(I) shall be the 12-month 
period beginning with the first month following 
the month which includes the earliest date as of 
which each such person is discharged in the 
case described in such clause in connection with 
such person. 
‘‘(D) COORDINATION WITH SECTION 4007.—
340
‘‘(i) Notwithstanding section 4007—
‘‘(I) premiums under this paragraph 
shall be due within 30 days after the be-
ginning of any applicable 12-month period, 
and 
‘‘(II) the designated payor shall be the 
person who is the contributing sponsor as 
of immediately before the termination date. 
‘‘(ii) The fifth sentence of section 4007(a) 
shall not apply in connection with premiums de-
termined under this paragraph.’’. 
(c) RISK-BASED PREMIUMS.—
(1) 
EXTENSION
THROUGH
2006.—Section 
4006(a)(3)(E)(iii)(V) of such Act is amended by 
striking ‘‘January 1, 2006’’ and inserting ‘‘January 
1, 2007’’. 
(2) CONFORMING
AMENDMENTS
RELATED
TO 
FUNDING RULES FOR SINGLE-EMPLOYER PLANS.—
Section 4006(a)(3)(E) of such Act is amended by 
striking clauses (iii) and (iv) and inserting the fol-
lowing: 
‘‘(iii)(I) For purposes of clause (ii), except as pro-
vided in subclause (II), the term ‘unfunded vested bene-
fits’ means, for a plan year, the amount which would be 
the plan’s funding shortfall (as defined in section
341
303(c)(4)), if the value of plan assets of the plan were 
equal to the fair market value of such assets and only vest-
ed 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(h)(2)(C) if section 303(h)(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(h)(2)(B).’’. 
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by 
subsection (a) and (c)(1) shall apply to plan years 
beginning after December 31, 2005. 
(2) PREMIUM RATE FOR CERTAIN TERMINATED 
SINGLE-EMPLOYER PLANS.—The amendment made 
by subsection (b) shall apply with respect to cases 
commenced under title 11, United States Code, or 
under any similar law of a State or political subdivi-
sion of a State after October 26, 2005. 
(3) CONFORMING
AMENDMENTS
RELATED
TO 
FUNDING RULES FOR SINGLE-EMPLOYER PLANS.—
The amendments made by subsection (c)(2) shall 
take effect on December 31, 2006, and shall apply 
to plan years beginning after such date.
342
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) by striking paragraph (2)(B)(iii) and insert-
ing the following: 
‘‘(iii)(I) in the case of a single-em-
ployer plan, a summary of the rules gov-
erning termination of single-employer plans 
under subtitle C of title IV, or 
‘‘(II) in the case of a multiemployer 
plan, a summary of the rules governing in-
solvent multiemployer plans, including the 
limitations on benefit payments and any 
potential benefit reductions and suspen-
sions (and the potential effects of such lim-
itations, reductions, and suspensions on 
the plan); and’’.
343
(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—
(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.
344
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: 
‘‘(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
345
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.’’. 
(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;
346
(2) in clause (vi), by striking the period and in-
serting ‘‘; and’’; and 
(3) by inserting after clause (vi) the following 
new clause: 
‘‘(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 DUE 90 DAYS AFTER PLAN’S VALU-
ATION DATE.—
(1) IN
GENERAL.—Section 101(f)(3) of such 
Act (29 U.S.C. 1021(f)(3)) is amended by striking 
‘‘two months after the deadline (including exten-
sions) for filing the annual report for the plan year’’ 
and inserting ‘‘90 days after the end of the plan 
year’’. 
(2) MODEL NOTICE.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Labor shall publish a model version of the 
notice required by section 101(f) of the Employee 
Retirement Income Security Act of 1974. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2005.
347
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) The ratio, as of the end of such plan year, 
of—
‘‘(i) the number of participants who, as of 
the end of such plan year, 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 as of the end of 
such plan year. 
‘‘(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-
348
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-
tribution’ means, in connection with a participant, a 
contribution made by an employer as an employer of 
such participant.’’.
349
(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 forms of benefit distributions under 
the plan.’’. 
(c) FILING AFTER 285 DAYS AFTER PLAN YEAR 
ONLY IN CASES OF HARDSHIP.—Section 104(a)(1) of 
such Act (29 U.S.C. 1024(a)(1)) is amended by inserting 
after the first sentence the following new sentence: ‘‘In 
the case of a pension plan, the Secretary may extend the 
deadline for filing the annual report for any plan year past 
285 days after the close of the plan year only on a case 
by case basis and only in cases of hardship, in accordance 
with regulations which shall be prescribed by the Sec-
retary.’’. 
(d) INTERNET DISPLAY OF INFORMATION.—Section 
104(b) of such Act (29 U.S.C. 1024(b)) is amended by 
adding at the end the following:
350
‘‘(5) Identification and basic plan information and ac-
tuarial information included in the annual report for any 
plan year shall be filed with the Secretary in an electronic 
format which accommodates display on the Internet, in ac-
cordance with regulations which shall be prescribed by the 
Secretary. The Secretary shall provide for display of such 
information included in the annual report, within 90 days 
after the date of the filing of the annual report, on a 
website maintained by the Secretary on the Internet and 
other appropriate media. Such information shall also be 
displayed on any website maintained by the plan sponsor 
(or by the plan administrator on behalf of the plan spon-
sor) on the Internet, in accordance with regulations which 
shall be prescribed by the Secretary.’’. 
(e) 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 of the plan,’’ and inserting ‘‘Within 
15 business days after the due date under subsection 
(a)(1) for the filing of the annual report for the fis-
cal year of the plan,’’; and 
(2) by striking ‘‘the latest’’ and inserting 
‘‘such’’.
351
(f) DISCLOSURE OF PLAN ASSETS AND LIABILITIES 
IN SUMMARY ANNUAL REPORT.—
(1) IN GENERAL.—Section 104(b)(3) of such 
Act (as amended by subsection (a)) is amended fur-
ther—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 
(B) by adding at the end the following: 
‘‘(B) The material provided pursuant to subpara-
graph (A) to summarize the latest annual report shall be 
written in a manner calculated to be understood by the 
average plan participant and shall set forth the total as-
sets and liabilities of the plan for the plan year for which 
the latest annual report was filed and for each of the 2 
preceding plan years, as reported in the annual report for 
each such plan year under this section.’’. 
(g) 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) (as amended by section 103(b)(2)(A)) is fur-
ther amended—
(A) by redesignating subsection (k) as sub-
section (l); and
352
(B) by inserting after subsection (j) the 
following new subsection: 
‘‘(k) 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 actuarial report re-
ceived 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. 
‘‘(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
353
‘‘(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)) (as amended by section 
103(b)(2)(B)) is further amended by striking ‘‘sec-
tions 101(j) and 302(b)(7)(F)(iv)’’ and inserting 
‘‘sections 101(j), 101(k), and 302(b)(7)(F)(iv)’’. 
(3) REGULATIONS.—The Secretary shall pre-
scribe regulations under section 101(k)(2) of the 
Employee Retirement Income Security Act of 1974 
(added by paragraph (1) of this subsection) not later
354
than 90 days after the date of the enactment of this 
Act. 
(h) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY 
TO MULTIEMPLOYER PLANS.—
(1) IN GENERAL.—Section 101 of such Act (as 
amended by subsection (g) of this section) is further 
amended—
(A) by redesignating subsection (l) as sub-
section (m); and 
(B) by inserting after subsection (k) the 
following new subsection: 
‘‘(l) NOTICE OF POTENTIAL WITHDRAWAL LIABIL-
ITY.—
‘‘(1) IN GENERAL.—The plan sponsor or ad-
ministrator of a multiemployer plan 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 
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
355
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. 
‘‘(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
356
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.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such 
Act (29 U.S.C. 1132(c)(4)) (as amended by para-
graph (1)) is further amended by striking ‘‘sections 
101(j), 101(k), and 302(b)(7)(F)(iv)’’ and inserting 
‘‘sections 
101(j), 
101(k), 
101(l), 
and 
302(b)(7)(F)(iv)’’. 
(i) MODEL FORM.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Labor 
shall publish a model form for providing the statements, 
schedules, and other material required to be provided 
under section 104(b)(3) of the Employee Retirement In-
come Security Act of 1974, as amended by this section. 
(j) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2005. 
SEC. 503. SECTION 4010 FILINGS WITH THE PBGC. 
(a) CHANGE IN CRITERIA FOR PERSONS REQUIRED 
TO PROVIDE INFORMATION TO PBGC.—Section 4010(b) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1310(b)) is amended by striking paragraph
357
(1), by redesignating paragraphs (2) and (3) as para-
graphs (3) and (4), respectively, and by inserting before 
paragraph (3) (as so redesignated) the following new para-
graphs: 
‘‘(1) the aggregate funding target attainment 
percentage of the plan (as defined in subsection 
(d)(2)) is less than 60 percent; 
‘‘(2)(A) the aggregate funding target attain-
ment percentage of the plan (as defined in sub-
section (d)(2)) is less than 75 percent, and 
‘‘(B) the plan sponsor is in an industry with re-
spect to which the corporation determines that there 
is substantial unemployment or underemployment 
and the sales and profits are depressed or declin-
ing;’’. 
(b) 
NOTICE
TO
PARTICIPANTS
AND
BENE-
FICIARIES.—Section 4010 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1310) is amended 
by adding at the end the following new subsection: 
‘‘(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