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‘‘(2) Paragraph (1) shall not apply to any plan
amendment that—
‘‘(A) the Secretary of the Treasury determines
to be reasonable and that provides for only de
minimis increases in the liabilities of the plan with
respect to employees of the debtor,
‘‘(B) only repeals an amendment described in
section 302(c)(8),
‘‘(C) is required as a condition of qualification
under part I of subchapter D of chapter 1 of the In-
ternal Revenue Code of 1986, or
‘‘(D) was adopted prior to, or pursuant to a col-
lective bargaining agreement entered into prior to,
the date on which the employer became a debtor in
a case under title 11, United States Code, or similar
Federal or State law.
‘‘(3) This subsection shall apply only to plans (other
than multiemployer plans) covered under section 4021 of
this Act for which the funded current liability percentage
(within the meaning of section 302(d)(8) of this Act) is
less than 100 percent after taking into account the effect
of the amendment.
‘‘(4) For purposes of this subsection, the term ‘em-
ployer’ has the meaning set forth in section 302(c)(11)(A),
without regard to section 302(c)(11)(B).’’
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(b) AMENDMENT TO INTERNAL REVENUE CODE OF
1986.—Section 401(a), as amended by section 751 of this
Act, is further amended by adding at the end the following
new paragraph:
‘‘(33) PROHIBITION
ON
BENEFIT
INCREASES
WHILE SPONSOR IS IN BANKRUPTCY.—
‘‘(A) IN GENERAL.—A trust which is part
of a plan to which this paragraph applies shall
not constitute a qualified trust under this sec-
tion if an amendment to such plan is adopted
while the employer is a debtor in a case under
title 11, United States Code, or similar Federal
or State law, if such amendment increases li-
abilities of the plan by reason of—
‘‘(i) any increase in benefits,
‘‘(ii) any change in the accrual of ben-
efits, or
‘‘(iii) any change in the rate at which
benefits become nonforfeitable under the
plan,
with respect to employees of the debtor, and
such amendment is effective prior to the effec-
tive date of such employer’s plan of reorganiza-
tion.
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‘‘(B) EXCEPTIONS.—This paragraph shall
not apply to any plan amendment if—
‘‘(i) the plan, were such amendment
to take effect, would have a funded current
liability percentage (as defined in section
412(l)(8)) of 100 percent or more,
‘‘(ii) the Secretary determines that
such amendment is reasonable and pro-
vides for only de minimis increases in the
liabilities of the plan with respect to em-
ployees of the debtor,
‘‘(iii) such amendment only repeals an
amendment 
described 
in 
subsection
412(c)(8), or
‘‘(iv) such amendment is required as a
condition of qualification under this part.
‘‘(C) PLANS TO WHICH THIS PARAGRAPH
APPLIES.—This paragraph shall apply only to
plans (other than multiemployer plans) covered
under section 4021 of the Employee Retirement
Income Security Act of 1974.
‘‘(D) EMPLOYER.—For purposes of this
paragraph, the term ‘employer’ means the em-
ployer referred to in section 412(c)(11) (with-
out regard to subparagraph (B) thereof).’’
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(c) EFFECTIVE DATE OF PLAN AMENDMENT.—Sec-
tion 4022 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1322) is amended by inserting
at the end the following new subsection:
‘‘(f) For purposes of this section, the effective date
of a plan amendment described in section 204(i)(1) shall
be the effective date of the plan of reorganization of the
employer described in section 204(i)(1) or, if later, the ef-
fective date stated in such amendment.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan amendments adopted on
or after the date of enactment of this Act.
SEC. 767. SINGLE SUM DISTRIBUTIONS.
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF
1986 RELATING TO MINIMUM BENEFITS.—
(1) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON MANDATORY DIS-
TRIBUTIONS.—Subparagraph 
(B) 
of 
section
411(a)(11) is amended to read as follows:
‘‘(B) 
DETERMINATION
OF
PRESENT
VALUE.—For purposes of subparagraph (A),
the present value shall be calculated in accord-
ance with section 417(e)(3).’’
(2) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON CASH-OUTS.—Para-
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graph (3) of section 417(e) is amended to read as
follows:
‘‘(3) DETERMINATION OF PRESENT VALUE.—
‘‘(A) IN GENERAL.—
‘‘(i) PRESENT
VALUE.—Except as
provided in subparagraph (B), for pur-
poses of paragraphs (1) and (2), the
present value shall not be less than the
present value calculated by using the appli-
cable mortality table and the applicable in-
terest rate.
‘‘(ii) DEFINITIONS.—For purposes of
clause (i)—
‘‘(I) 
APPLICABLE
MORTALITY
TABLE.—The term ‘applicable mortal-
ity table’ means the table prescribed
by the Secretary. Such table shall be
based on the prevailing commis-
sioners’ standard table (described in
section 807(d)(5)(A)) used to deter-
mine reserves for group annuity con-
tracts issued on the date as of which
present value is being determined
(without regard to any other subpara-
graph of section 807(d)(5)).
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‘‘(II) 
APPLICABLE
INTEREST
RATE.—The term ‘applicable interest
rate’ means the annual rate of inter-
est on 30-year Treasury securities for
the month before the date of distribu-
tion or such other time as the Sec-
retary may by regulations prescribe.
‘‘(B) EXCEPTION.—In the case of a dis-
tribution from a plan that was adopted and in
effect before the date of the enactment of the
Retirement Protection Act of 1994, the present
value of any distribution made before the ear-
lier of—
‘‘(i) the later of the date a plan
amendment applying subparagraph (A) is
adopted or made effective, or
‘‘(ii) the first day of the first plan
year beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs
(1) and (2), using the interest rate determined
under the regulations of the Pension Benefit
Guaranty Corporation for determining the
present value of a lump sum distribution on
plan termination that were in effect on Septem-
ber 1, 1993, and using the provisions of the
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plan as in effect on the day before such date of
enactment; but only if such provisions of the
plan met the requirements of section 417(e)(3)
as in effect on the day before such date of en-
actment.’’
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF
1986 RELATING
TO MAXIMUM BENEFITS.—Subpara-
graph (E) of section 415(b)(2) is amended—
(1) by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively,
(2) by striking clause (i) and inserting the fol-
lowing new clauses:
‘‘(i) Except as provided in clause (ii),
for purposes of adjusting any benefit or
limitation under subparagraph (B) or (C),
the interest rate assumption shall not be
less than the greater of 5 percent or the
rate specified in the plan.
‘‘(ii) For purposes of adjusting the
benefit or limitation of any form of benefit
subject to section 417(e)(3), the applicable
interest 
rate 
(as 
defined 
in 
section
417(e)(3)) shall be substituted for ‘5 per-
cent’ in clause (i).’’, and
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(3) by adding at the end the following new
clause:
‘‘(v) For purposes of adjusting any
benefit or limitation under subparagraph
(B), (C), or (D), the mortality table used
shall be the table prescribed by the Sec-
retary. Such table shall be based on the
prevailing commissioners’ standard table
(described in section 807(d)(5)(A)) used to
determine reserves for group annuity con-
tracts issued on the date the adjustment is
being made (without regard to any other
subparagraph of section 807(d)(5)).’’
(c) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—
(1) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON MANDATORY DIS-
TRIBUTIONS.—Section 203(e)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1053(e)(2)) is amended to read as follows:
‘‘(2) For purposes of paragraph (1), the present value
shall be calculated in accordance with section 205(g)(3).’’
(2) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON CASH-OUTS.—Sec-
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tion 205(g)(3) of such Act (29 U.S.C. 1055(g)(3))
is amended to read as follows:
‘‘(3) DETERMINATION OF PRESENT VALUE.—
‘‘(A) IN GENERAL.—
‘‘(i) PRESENT
VALUE.—Except as
provided in subparagraph (B), for pur-
poses of paragraphs (1) and (2), the
present value shall not be less than the
present value calculated by using the appli-
cable mortality table and the applicable in-
terest rate.
‘‘(ii) DEFINITIONS.—For purposes of
clause (i)—
‘‘(I) 
APPLICABLE
MORTALITY
TABLE.—The term ‘applicable mortal-
ity table’ means the table prescribed
by the Secretary of the Treasury.
Such table shall be based on the pre-
vailing commissioners’ standard table
(described in section 807(d)(5)(A) of
the Internal Revenue Code of 1986)
used to determine reserves for group
annuity contracts issued on the date
as of which present value is being de-
termined (without regard to any other
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subparagraph of section 807(d)(5) of
such Code).
‘‘(II) 
APPLICABLE
INTEREST
RATE.—The term ‘applicable interest
rate’ means the annual rate of inter-
est on 30-year Treasury securities for
the month before the date of distribu-
tion or such other time as the Sec-
retary of the Treasury may by regula-
tions prescribe.
‘‘(B) EXCEPTION.—In the case of a dis-
tribution from a plan that was adopted and in
effect prior to the date of the enactment of the
Retirement Protection Act of 1994, the present
value of any distribution made before the ear-
lier of—
‘‘(i) the later of when a plan amend-
ment applying subparagraph (A) is adopt-
ed or made effective, or
‘‘(ii) the first day of the first plan
year beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs
(1) and (2), using the interest rate determined
under the regulations of the Pension Benefit
Guaranty Corporation for determining the
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present value of a lump sum distribution on
plan termination that were in effect on Septem-
ber 1, 1993, and using the provisions of the
plan as in effect on the day before such date of
enactment; but only if such provisions of the
plan met the requirements of section 205(g)(3)
as in effect on the day before such date of en-
actment.’’
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to plan years and limitation
years beginning after December 31, 1994; except
that an employer may elect to treat the amendments
made by this section as being effective on or after
the date of the enactment of this Act.
(2) NO REDUCTION IN ACCRUED BENEFITS.—A
participant’s accrued benefit shall not be considered
to be reduced in violation of section 411(d)(6) of the
Internal Revenue Code of 1986 or section 204(g) of
the Employee Retirement Income Security Act of
1974 merely because (A) the benefit is determined
in accordance with section 417(e)(3)(A) of such
Code, as amended by this Act, or section 205(g)(3)
of the Employee Retirement Income Security Act of
1974, as amended by this Act, or (B) the plan ap-
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plies section 415(b)(2)(E) of such Code, as amended
by this Act.
(3) SECTION 415.—
(A) NO
REDUCTION
REQUIRED.—An ac-
crued benefit shall not be required to be re-
duced below the accrued benefit as of the last
day of the last plan year beginning before Jan-
uary 1, 1995, merely because of the amend-
ments made by subsection (b).
(B) TIMING
OF
PLAN
AMENDMENT.—A
plan that operates in accordance with the
amendments made by subsection (b) shall not
be treated as failing to satisfy section 401(a) of
the Internal Revenue Code of 1986 or as not
being operated in accordance with the provi-
sions of the plan until such date as the Sec-
retary of the Treasury provides merely because
the plan has not been amended to include the
amendments made by subsection (b).
SEC. 768. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM
FUNDING CONTRIBUTIONS.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
(1) CLARIFICATION OF APPLICABILITY OF PRO-
VISION.—Paragraph (2) of section 412(n) is amend-
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ed by adding at the end the following new sentence:
‘‘This subsection shall not apply to any plan to
which section 4021 of the Employee Retirement In-
come Security Act of 1974 does not apply (as such
section is in effect on the date of the enactment of
the Retirement Protection Act of 1994).’’.
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph
(3) of section 412(n) is amended to read as follows:
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to
the aggregate unpaid balance of required install-
ments and other payments required under this sec-
tion (including interest)—
‘‘(A) for plan years beginning after 1987,
and
‘‘(B) for which payment has not been
made before the due date.’’
(3) 
REPEAL
OF
60-DAY
DELAY.—Section
412(n)(4)(B) is amended by striking ‘‘60th day fol-
lowing the’’.
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—
(1) CLARIFICATION OF APPLICABILITY OF PRO-
VISION.—Section 302(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C.
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1082(f)(1)) is amended by striking ‘‘to which this
section applies’’ and inserting ‘‘covered under sec-
tion 4021 of this Act’’.
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph
(3) of section 302(f) of such Act is amended to read
as follows:
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to
the aggregate unpaid balance of required install-
ments and other payments required under this sec-
tion (including interest)—
‘‘(A) for plan years beginning after 1987,
and
‘‘(B) for which payment has not been
made before the due date.’’
(3) 
REPEAL
OF
60-DAY
DELAY.—Section
302(f)(4)(B) of such Act is amended by striking
‘‘60th day following the’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective for installments and other
payments required under section 412 of the Internal Reve-
nue Code of 1986 or under part 3 of subtitle B of the
Employee Retirement Income Security Act of 1974 that
become due on or after the date of enactment.
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SEC. 769. SPECIAL FUNDING RULES FOR CERTAIN PLANS.
(a) FUNDING RULES NOT TO APPLY TO CERTAIN
PLANS.—Any changes made by this Act to section 412
of the Internal Revenue Code of 1986 or to part 3 of sub-
title B of title I of the Employee Retirement Income Secu-
rity Act of 1974 shall not apply to—
(1) a plan which is, on the date of enactment
of this Act, subject to a restoration payment sched-
ule order issued by the Pension Benefit Guaranty
Corporation that meets the requirements of section
1.412(c)(1)–3 of the Treasury Regulations, or
(2) a plan established by an affected air carrier
(as defined under section 4001(a)(14)(C)(ii)(I) of
such Act) and assumed by a new plan sponsor pur-
suant to the terms of a written agreement with the
Pension Benefit Guaranty Corporation dated Janu-
ary 5, 1993, and approved by the United States
Bankruptcy Court for the District of Delaware on
December 30, 1992.
(b) CHANGE IN ACTUARIAL METHOD.—Any amorti-
zation installments for bases established under section
412(b) of the Internal Revenue Code of 1986 and section
302(b) of the Employee Retirement Income Security Act
of 1974 for plan years beginning after December 31,
1987, and before January 1, 1993, by reason of
nonelective changes under the frozen entry age actuarial
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cost method shall not be included in the calculation of off-
sets under section 412(l)(1)(A)(ii) of such Code and sec-
tion 302(d)(1)(A)(ii) of such Act for the 1st 5 plan years
beginning after December 31, 1994.
PART II—AMENDMENTS RELATED TO TITLE IV
OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974
SEC. 771. REPORTABLE EVENTS.
(a) RESPONSIBILITY FOR REPORTABLE EVENTS RE-
PORTING.—Section 4043(a) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1343(a)) is
amended—
(1) in the first sentence, by inserting ‘‘or the
contributing sponsor’’ before ‘‘knows or has reason
to know’’;
(2) in the first sentence, by inserting ‘‘, unless
a notice otherwise required under this subsection has
already been provided with respect to such event’’
before the period at the end; and
(3) by striking the last sentence.
(b) NOTIFICATION THAT EVENT IS ABOUT TO
OCCUR.—Section 4043 of such Act is amended by redesig-
nating subsections (b), (c), and (d) as (c), (d), and (e),
respectively, and by inserting after subsection (a) the fol-
lowing new subsection:
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‘‘(b)(1) The requirements of this subsection shall be
applicable to a contributing sponsor if, as of the close of
the preceding plan year—
‘‘(A) the aggregate unfunded vested benefits (as
determined under section 4006(a)(3)(E)(iii)) of
plans subject to this title which are maintained by
such sponsor and members of such sponsor’s con-
trolled groups (disregarding plans with no unfunded
vested benefits) exceed $50,000,000, and
‘‘(B) the funded vested benefit percentage for
such plans is less than 90 percent.
For purposes of subparagraph (B), the funded vested ben-
efit percentage means the percentage which the aggregate
value of the assets of such plans bears to the aggregate
vested benefits of such plans (determined in accordance
with section 4006(a)(3)(E)(iii)).
‘‘(2) This subsection shall not apply to an event if
the contributing sponsor, or the member of the contribut-
ing sponsor’s controlled group to which the event relates,
is—
‘‘(A) a person subject to the reporting require-
ments of section 13 or 15(d) of the Securities Ex-
change Act of 1934, or
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‘‘(B) a subsidiary (as defined for purposes of
such Act) of a person subject to such reporting re-
quirements.
‘‘(3) No later than 30 days prior to the effective date
of an event described in paragraph (9), (10), (11), (12),
or (13) of subsection (c), a contributing sponsor to which
the requirements of this subsection apply shall notify the
corporation that the event is about to occur.
‘‘(4) The corporation may waive the requirement of
this subsection with respect to any or all reportable events
with respect to any contributing sponsor.’’
(c) NEW REPORTABLE EVENTS.—Subsection (c) of
section 4043 of such Act (as redesignated by subsection
(b)) is amended—
(1) by striking the ‘‘or’’ at the end of para-
graph (8);
(2) by striking paragraph (9); and
(3) by inserting after paragraph (8) the follow-
ing new paragraphs:
‘‘(9) when, as a result of an event, a person
ceases to be a member of the controlled group;
‘‘(10) when a contributing sponsor or a member
of 
a 
contributing 
sponsor’s 
controlled 
group
liquidates in a case under title 11, United States
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Code, or under any similar Federal law or law of a
State or political subdivision of a State;
‘‘(11) when a contributing sponsor or a member
of a contributing sponsor’s controlled group declares
an extraordinary dividend (as defined in section
1059(c) of the Internal Revenue Code of 1986) or
redeems, in any 12-month period, an aggregate of
10 percent or more of the total combined voting
power of all classes of stock entitled to vote, or an
aggregate of 10 percent of more of the total value
of shares of all classes of stock, of a contributing
sponsor and all members of its controlled group;
‘‘(12) when, in any 12-month period, an aggre-
gate of 3 percent or more of the benefit liabilities of
a plan covered by this title and maintained by a con-
tributing sponsor or a member of its controlled
group are transferred to a person that is not a mem-
ber of the controlled group or to a plan or plans
maintained by a person or persons that are not such
a contributing sponsor or a member of its controlled
group; or
‘‘(13) when any other event occurs that may be
indicative of a need to terminate the plan and that
is prescribed by the corporation in regulations.’’
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(d) DISCLOSURE EXEMPTION.—Section 4043 of such
Act is amended by adding at the end the following new
subsection:
‘‘(f) Any information or documentary material sub-
mitted to the corporation pursuant to this section shall
be exempt from disclosure under section 552 of title 5,
United States Code, and no such information or documen-
tary material may be made public, except as may be rel-
evant to any administrative or judicial action or proceed-
ing. Nothing in this section is intended to prevent disclo-
sure to either body of Congress or to any duly authorized
committee or subcommittee of the Congress.’’
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 4043 of such Act,
and subsections (d) and (e) of such section 4043 (as
redesignated by subsection (b)), are each amended
by striking ‘‘subsection (b)’’ each place it appears
and inserting ‘‘subsection (c)’’.
(2) Section 4042(a)(3) of such Act is amended
by 
striking 
‘‘4043(b)(7)’’ 
and 
inserting
‘‘4043(c)(7)’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall be effective for events occurring 60 days
or more after the date of enactment of this Act.
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SEC. 772. CERTAIN INFORMATION REQUIRED TO BE FUR-
NISHED TO PBGC.
(a) GENERAL RULE.—Subtitle A of title IV of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1301 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMA-
TION.
‘‘(a) INFORMATION REQUIRED.—Each person de-
scribed in subsection (b) shall provide the corporation an-
nually, on or before a date specified by the corporation
in regulations, with—
‘‘(1) such records, documents, or other informa-
tion that the corporation specifies in regulations as
necessary to determine the liabilities and assets of
plans covered by this title; and
‘‘(2) copies of such person’s audited (or, if un-
available, unaudited) financial statements, and such
other financial information as the corporation may
prescribe in regulations.
‘‘(b) PERSONS REQUIRED TO PROVIDE INFORMA-
TION.—The persons covered by subsection (a) are each
contributing sponsor, and each member of a contributing
sponsor’s controlled group, of a single-employer plan cov-
ered by this title, if—
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‘‘(1) the aggregate unfunded vested benefits at
the end of the preceding plan year (as determined
under section 4006(a)(3)(E)(iii)) of plans main-
tained by the contributing sponsor and the members
of its controlled group exceed $50,000,000 (dis-
regarding plans with no unfunded vested benefits);
‘‘(2) the conditions for imposition of a lien de-
scribed in section 302(f)(1)(A) and (B) of this Act
or section 412(n)(1)(A) and (B) of the Internal Rev-
enue Code of 1986 have been met with respect to
any plan maintained by the contributing sponsor or
any member of its controlled group; or
‘‘(3) minimum funding waivers in excess of
$1,000,000 have been granted with respect to any
plan maintained by the contributing sponsor or any
member of its controlled group, and any portion
thereof is still outstanding.
‘‘(c) INFORMATION EXEMPT FROM DISCLOSURE RE-
QUIREMENTS.—Any information or documentary material
submitted to the corporation pursuant to this section shall
be exempt from disclosure under section 552 of title 5,
United States Code, and no such information or documen-
tary material may be made public, except as may be rel-
evant to any administrative or judicial action or proceed-
ing. Nothing in this section is intended to prevent disclo-
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sure to either body of Congress or to any duly authorized
committee or subcommittee of the Congress.’’
(b) CLERICAL AMENDMENT.—The table of contents
contained in section 1 of such Act is amended by inserting
after the item relating to section 4009 the following new
item:
‘‘Sec. 4010. Authority to require certain information.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective on the date of enactment of
this Act.
SEC. 773. ENFORCEMENT OF MINIMUM FUNDING REQUIRE-
MENTS.
(a) IN GENERAL.—Paragraph (1) of section 4003(e)
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1303(e)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘enforce’’; and
(2) by striking the period after ‘‘title’’ and in-
serting ‘‘, and (B) in the case of a plan which is cov-
ered under this title (other than a multiemployer
plan) and for which the conditions for imposition of
a lien described in section 302(f)(1)(A) and (B) of
this Act or section 412(n)(1)(A) and (B) of the In-
ternal Revenue Code of 1986 have been met, section
302 of this Act and section 412 of such Code.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall be effective for installments and other
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payments required under section 302 of the Employee Re-
tirement Income Security Act of 1974 or section 412 of
the Internal Revenue Code of 1986 that become due on
or after the date of the enactment of this Act.
SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM.
(a) PHASE-OUT
OF
VARIABLE
RATE
PREMIUM
CAP.—
(1) IN GENERAL.—Subparagraph (E) of section
4006(a)(3) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is
amended by striking clause (iv), and by redesignat-
ing clause (v) as clause (iv).
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—The amendments made
by this subsection shall be effective for plan
years beginning on or after July 1, 1994.
(B) TRANSITION
RULE.—In the case of
plan years beginning on or after July 1, 1994,
and before July 1, 1996, the additional pre-
mium payable with respect to any participant
by reason of the amendments made by this sec-
tion shall not exceed the sum of—
(i) $53, and
(ii) the product derived by multiply-
ing—
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(I) the excess (if any) of the
amount determined under clause (i) of
section 4006(a)(3)(E) of the Em-
ployee Retirement Income Security
Act of 1974, over $53, by
(II) the applicable percentage.
For purposes of this subparagraph, the applica-
ble percentage shall be the percentage specified
in the following table:
For the plan year beginning:
The appli-
cable per-
centage is:
on or after
but before
July 1, 1994 ........................
July 1, 1995 ......................
20 percent
July 1, 1995 ........................
July 1, 1996 ......................
60 percent
(b) INTEREST RATE AND ASSET VALUATION.—
(1) INTEREST RATE.—Subclause (II) of section
4006(a)(3)(E)(iii) of the Employee Retirement In-
come Security Act of 1974 is amended—
(A) by striking ‘‘80 percent’’ and inserting
‘‘the applicable percentage’’, and
(B) by adding at the end the following new
sentence: ‘‘For purposes of this subclause, the
applicable percentage is 80 percent for plan
years beginning before July 1, 1997, 85 percent
for plan years beginning after June 30, 1997,
and before the 1st plan year to which the first
tables 
prescribed 
under 
section
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302(d)(7)(C)(ii)(II) apply, and 100 percent for
such 1st plan year and subsequent plan years.’’
(2) ASSET VALUATION.—Clause (iii) of section
4006(a)(3)(E) of such Act is amended—
(A) 
by 
inserting 
‘‘or 
(III)’’ 
after
‘‘subclause (II)’’ in subclause (I), and
(B) by adding at the end the following new
subclause:
‘‘(III) In the case of any plan
year for which the applicable percent-
age under subclause (II) is 100 per-
cent, the value of the plan’s assets
used in determining unfunded current
liability under subclause (I) shall be
their fair market value.’’
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to plan years begin-
ning after the date of the enactment of this Act.
(c) TRANSITION RULE FOR CERTAIN REGULATED
PUBLIC UTILITIES.—In the case of a regulated public util-
ity described in section 7701(a)(33)(A)(i) of the Internal
Revenue Code of 1986, the amendments made by this sec-
tion shall not apply to plan years beginning before the ear-
lier of—
(1) January 1, 1998, or
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(2) the date the regulated public utility begins
to collect from utility customers rates that reflect
the costs incurred or projected to be incurred for ad-
ditional premiums under section 4006(a)(3)(E) of
the Employee Retirement Income Security Act of
1974 pursuant to final and nonappealable deter-
minations by all public utility commissions (or other
authorities having jurisdiction over the rates and
terms of service by the regulated public utility) that
the costs are just and reasonable and recoverable
from customers of the regulated public utility.
SEC. 775. DISCLOSURE TO PARTICIPANTS.
(a) PARTICIPANT NOTICE REQUIREMENT.—Subtitle
A of title IV of the Employee Retirement Income Security
Act of 1974 (as amended by section 772 of this Act) is
further amended by adding at the end the following new
section:
‘‘SEC. 4011. NOTICE TO PARTICIPANTS.
‘‘(a) IN GENERAL.—The plan administrator of a plan
subject to the additional premium under section
4006(a)(3)(E) shall provide, in a form and manner and
at such time as prescribed in regulations of the corpora-
tion, notice to plan participants and beneficiaries of the
plan’s funding status and the limits on the corporation’s
guaranty should the plan terminate while underfunded.
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Such notice shall be written in a manner so as to be under-
stood by the average plan participant.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to
any plan to which section 302(d) does not apply for the
plan year by reason of paragraph (9) thereof.’’
(b) CLERICAL AMENDMENT.—The table of contents
contained in section 1 of such Act is amended by inserting
after the item relating to section 4010 (as added by sec-
tion 772 of this Act) the following new item:
‘‘Sec. 4011. Notice to participants.’’
(c) EFFECTIVE DATE.—The amendment made by
this section shall be effective for plan years beginning after
the date of enactment of this Act.
SEC. 776. MISSING PARTICIPANTS.
(a) IN GENERAL.—Subtitle C of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1341 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 4050. MISSING PARTICIPANTS.
‘‘(a) GENERAL RULE.—
‘‘(1) PAYMENT TO THE CORPORATION.—A plan
administrator satisfies section 4041(b)(3)(A) in the
case of a missing participant only if the plan admin-
istrator—
‘‘(A) transfers the participant’s designated
benefit to the corporation or purchases an irrev-
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ocable commitment from an insurer in accord-
ance with clause (i) of section 4041(b)(3)(A),
and
‘‘(B) provides the corporation such infor-
mation and certifications with respect to such
designated benefits or irrevocable commitments
as the corporation shall specify.
‘‘(2) TREATMENT OF TRANSFERRED ASSETS.—
A transfer to the corporation under this section shall
be treated as a transfer of assets from a terminated
plan to the corporation as trustee, and shall be held
with assets of terminated plans for which the cor-
poration is trustee under section 4042, subject to
the rules set forth in that section.
‘‘(3) PAYMENT BY THE CORPORATION.—After a
missing participant whose designated benefit was
transferred to the corporation is located—
‘‘(A) in any case in which the plan could
have distributed the benefit of the missing par-
ticipant in a single sum without participant or
spousal consent under section 205(g), the cor-
poration shall pay the participant or beneficiary
a single sum benefit equal to the designated
benefit paid the corporation plus interest as
specified by the corporation, and
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‘‘(B) in any other case, the corporation
shall pay a benefit based on the designated ben-
efit and the assumptions prescribed by the cor-
poration at the time that the corporation re-
ceived the designated benefit.
The corporation shall make payments under sub-
paragraph (B) available in the same forms and at
the same times as a guaranteed benefit under sec-
tion 4022 would be available to be paid, except that
the corporation may make a benefit available in the
form of a single sum if the plan provided a single
sum benefit (other than a single sum described in
subsection (b)(2)(A)).
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) MISSING PARTICIPANT.—The term ‘miss-
ing participant’ means a participant or beneficiary
under a terminating plan whom the plan adminis-
trator cannot locate after a diligent search.
‘‘(2) DESIGNATED BENEFIT.—The term ‘des-
ignated benefit’ means the single sum benefit the
participant would receive—
‘‘(A) under the plan’s assumptions, in the
case of a distribution that can be made without
participant or spousal consent under section
205(g);
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‘‘(B) under the assumptions of the cor-
poration in effect on the date that the des-
ignated benefit is transferred to the corpora-
tion, in the case of a plan that does not pay any
single sums other than those described in sub-
paragraph (A); or
‘‘(C) under the assumptions of the cor-
poration or of the plan, whichever provides the
higher single sum, in the case of a plan that
pays a single sum other than those described in
subparagraph (A).
‘‘(c) REGULATORY AUTHORITY.—The corporation
shall prescribe such regulations as are necessary to carry
out the purposes of this section, including rules relating
to what will be considered a diligent search, the amount
payable to the corporation, and the amount to be paid by
the corporation.’’
(b) CONFORMING TITLE IV AMENDMENTS.—
(1) AMENDMENT
TO
SECTION
4003.—Section
4003(a) of such Act (29 U.S.C. 1303(a)) is amend-
ed in the second sentence by inserting before the pe-
riod the following: ‘‘and whether section 4050(a) has
been satisfied’’.
(2) AMENDMENT
TO
SECTION
4005.—Section
4005(b)(2)(A) 
of 
such 
Act 
(29 
U.S.C.
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1305(b)(2)(A)) is amended by inserting ‘‘or benefits
payable under section 4050’’ after ‘‘section 4022A’’.
(3) AMENDMENT
TO
SECTION
4041.—Section
4041(b)(3)(A)(ii) 
of 
such 
Act 
(29 
U.S.C.
1341(b)(3)(A)(ii)) is amended by adding at the end
the following new sentence: ‘‘A transfer of assets to
the corporation in accordance with section 4050 on
behalf of a missing participant shall satisfy this sub-
paragraph with respect to such participant.’’
(c) CONFORMING ERISA AMENDMENTS.—
(1) The table of contents contained in section
1 of the Employee Retirement Income Security Act
of 1974 is amended by inserting after the item relat-
ed to section 4049 the following new item:
‘‘Sec. 4050. Missing participants.’’
(2) Section 206 of such Act (29 U.S.C. 1056)
is amended by adding at the end the following new
subsection:
‘‘(f) 
MISSING
PARTICIPANTS
IN
TERMINATED
PLANS.—In the case of a plan covered by title IV, the
plan shall provide that, upon termination of the plan, ben-
efits of missing participants shall be treated in accordance
with section 4050.’’
(d) 
CONFORMING
INTERNAL
REVENUE
CODE
AMENDMENTS.—Section 401(a), as amended by section
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766 of this Act, is further amended by inserting after
paragraph (33) the following new paragraph:
‘‘(34) BENEFITS OF MISSING PARTICIPANTS ON
PLAN TERMINATION.—In the case of a plan covered
by title IV of the Employee Retirement Income Se-
curity Act of 1974, a trust forming part of such
plan shall not be treated as failing to constitute a
qualified trust under this section merely because the
pension plan of which such trust is a part, upon its
termination, transfers benefits of missing partici-
pants to the Pension Benefit Guaranty Corporation
in accordance with section 4050 of such Act.’’
(e) EFFECTIVE DATE.—The provisions of this section
shall be effective with respect to distributions that occur
in plan years commencing after final regulations imple-
menting these provisions are prescribed by the Pension
Benefit Guaranty Corporation.
SEC. 777. MODIFICATION OF MAXIMUM GUARANTEE FOR
DISABILITY BENEFITS.
(a) IN GENERAL.—Section 4022(b)(3) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1322(b)(3)) is amended by adding at the end the
following new sentences: ‘‘The maximum guaranteed
monthly benefit shall not be reduced solely on account of
the age of a participant in the case of a benefit payable
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HR 5110 CDH
by reason of disability that occurred on or before the ter-
mination date, if the participant demonstrates to the satis-
faction of the corporation that the Social Security Admin-
istration has determined that the participant satisfies the
definition of disability under title II or XVI of the Social
Security Act, and the regulations thereunder. If a benefit
payable by reason of disability is converted to an early
or normal retirement benefit for reasons other than a
change in the health of the participant, such early or nor-
mal retirement benefit shall be treated as a continuation
of the benefit payable by reason of disability and this sub-
paragraph shall continue to apply.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for plan terminations under
section 4041(c) of the Employee Retirement Income Secu-
rity Act of 1974 with respect to which notices of intent
to terminate are provided under section 4041(a)(2) of
such Act, or under section 4042 of such Act with respect
to which proceedings are instituted by the corporation, on
or after the date of enactment of this Act.
SEC. 778. PROCEDURES TO FACILITATE DISTRIBUTION OF
TERMINATION BENEFITS.
(a) REMEDIES
FOR NONCOMPLIANCE WITH RE-
QUIREMENTS FOR STANDARD TERMINATION.—
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HR 5110 CDH
(1) NOTICE
OF
NONCOMPLIANCE.—Section
4041(b)(2)(C)(i) of the Employee Retirement In-
come 
Security 
Act 
of 
1974 
(29 
U.S.C.
1341(b)(2)(C)(i)) is amended—
(A) by striking subclause (I) and inserting
the following new subclause:
‘‘(I) it determines, based on the
notice sent under paragraph (2)(A) of
subsection (b), that there is reason to
believe that the plan is not sufficient
for benefit liabilities,’’;
(B) by striking the period at the end of
subclause (II) and inserting ‘‘, or’’; and
(C) by adding at the end the following new
subclause:
‘‘(III) it determines that any
other requirement of subparagraph
(A) or (B) of this paragraph or of
subsection (a)(2) has not been met,
unless it further determines that the
issuance of such notice would be in-
consistent with the interests of par-
ticipants and beneficiaries.’’
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to any plan termi-
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nation under section 4041(b) of the Employee Re-
tirement Income Security Act of 1974 with respect
to which the Pension Benefit Guaranty Corporation
has not, as of the date of enactment of this Act, is-
sued a notice of noncompliance that has become
final, or otherwise issued a final determination that
the plan termination is nullified.
(b) DISTRESS TERMINATION CRITERIA FOR BANK-
ING INSTITUTIONS.—
(1) CLARIFICATION OF DISTRESS CRITERION.—
Subclause (I) of section 4041(c)(2)(B)(i) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1341(c)(2)(B)(i)) is amended by inserting
after ‘‘under any similar’’ the following: ‘‘Federal
law or’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall be effective as if included in
the Single-Employer Pension Plan Amendments Act
of 1986.
PART III—EFFECTIVE DATES
SEC. 781. EFFECTIVE DATES.
Except as otherwise provided in this subtitle, the
amendments made by this subtitle shall be effective on the
date of enactment of this Act.
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TITLE VIII—PIONEER
PREFERENCES
SEC. 801. PIONEER PREFERENCES.
Section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j)) is amended by adding at the end the
following new paragraph:
‘‘(13) RECOVERY OF VALUE OF PUBLIC SPEC-
TRUM
IN
CONNECTION
WITH
PIONEER
PREF-
ERENCES.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (6)(G), the Commission shall not award
licenses pursuant to a preferential treatment
accorded by the Commission to persons who
make significant contributions to the develop-
ment of a new telecommunications service or
technology, except in accordance with the re-
quirements of this paragraph.
‘‘(B) RECOVERY OF VALUE.—The Commis-
sion shall recover for the public a portion of the
value of the public spectrum resource made
available to such person by requiring such per-
son, as a condition for receipt of the license, to
agree to pay a sum determined by—
‘‘(i) identifying the winning bids for
the licenses that the Commission deter-
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mines are most reasonably comparable in
terms of bandwidth, scope of service area,
usage restrictions, and other technical
characteristics to the license awarded to
such person, and excluding licenses that
the Commission determines are subject to
bidding anomalies due to the award of
preferential treatment;
‘‘(ii) dividing each such winning bid
by the population of its service area (here-
inafter referred to as the per capita bid
amount);
‘‘(iii) computing the average of the
per capita bid amounts for the licenses
identified under clause (i);
‘‘(iv) reducing such average amount
by 15 percent; and
‘‘(v) multiplying the amount deter-
mined under clause (iv) by the population
of the service area of the license obtained
by such person.
‘‘(C) INSTALLMENTS
PERMITTED.—The
Commission shall require such person to pay
the sum required by subparagraph (B) in a
lump sum or in guaranteed installment pay-
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ments, with or without royalty payments, over
a period of not more than 5 years.
‘‘(D) RULEMAKING
ON
PIONEER
PREF-
ERENCES.—Except with respect to pending ap-
plications described in clause (iv) of this sub-
paragraph, the Commission shall prescribe reg-
ulations specifying the procedures and criteria
by which the Commission will evaluate applica-
tions for preferential treatment in its licensing
processes (by precluding the filing of mutually
exclusive applications) for persons who make
significant contributions to the development of
a new service or to the development of new
technologies that substantially enhance an exist-
ing service. Such regulations shall—
‘‘(i) specify the procedures and cri-
teria by which the significance of such con-
tributions will be determined, after an op-
portunity for review and verification by ex-
perts in the radio sciences drawn from
among persons who are not employees of
the Commission or by any applicant for
such preferential treatment;
‘‘(ii) include such other procedures as
may be necessary to prevent unjust enrich-
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ment by ensuring that the value of any
such contribution justifies any reduction in
the amounts paid for comparable licenses
under this subsection;
‘‘(iii) be prescribed not later than 6
months after the date of enactment of this
paragraph;
‘‘(iv) not apply to applications that
have been accepted for filing on or before
September 1, 1994; and
‘‘(v) cease to be effective on the date
of the expiration of the Commission’s au-
thority under subparagraph (F).
‘‘(E) IMPLEMENTATION WITH RESPECT TO
PENDING
APPLICATIONS.—In 
applying 
this
paragraph to any broadband licenses in the per-
sonal communications service awarded pursuant
to the preferential treatment accorded by the
Federal Communications Commission in the
Third Report and Order in General Docket 90-
314 (FCC 93-550, released February 3,
1994)—
‘‘(i) the Commission shall not recon-
sider the award of preferences in such
Third Report and Order, and the Commis-