promise, a guarantee, or any other representa-
tion. 
‘‘(2) WAIVER.— 
‘‘(A) IN
GENERAL.—The Secretary may 
waive the imposition of a tax under this sub-
section on any contribution described in para-
graph (1)(A) or any accrual described in para-
graph (1)(B). The Secretary may grant any 
such waiver only after consultation with the 
Pension Benefit Guaranty Corporation. The 
Secretary shall promptly notify the Secretary of 
Labor of any such waiver granted by the Sec-
retary. 
‘‘(B) REQUIREMENTS
FOR
WAIVER.—A 
waiver may be granted under subparagraph (A) 
only— 
‘‘(i) upon the filing with the Secretary 
by the plan sponsor of an application for 
such waiver, in such form and manner as 
shall be prescribed in regulations of the 
Secretary, 
‘‘(ii) upon a showing, to the satisfac-
tion of the Secretary, that such waiver is 
a business necessity for the plan sponsor, 
as determined under such regulations, and
is in the interest of plan participants and 
beneficiaries, as determined under such 
regulations, and 
‘‘(iii) after the participants, in such 
form and manner as shall be provided in 
such regulations, have been notified of the 
filing of the application for the waiver and 
have been provided a reasonable oppor-
tunity to provide in advance comments to 
the Secretary regarding the proposed waiv-
er.’’; and 
(3) in subsection (c) (as redesignated by para-
graph (1))— 
(A) by striking ‘‘The amount of the tax’’ 
and inserting the following: 
‘‘(1) SUBSECTION
(a).—The amount of the 
tax’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) SUBSECTION (b).—The amount of the tax 
imposed by subsection (b) shall be equal to the sum 
of— 
‘‘(A) the amount of any contribution de-
scribed in subsection (b)(1), plus
‘‘(B) the amount of any accrual described 
in subsection (b)(2).’’; and 
(4) in subsection (d) (as redesignated by para-
graph (1)), by striking ‘‘the tax’’ and inserting ‘‘any 
tax’’. 
(b) CONFORMING AMENDMENT.—Section 206(g)(6) 
of the Employee Retirement Income Security Act of 1974 
(as added by section 101 of this Act) is amended by strik-
ing 
‘‘section 
4980H(g)’’ 
and 
inserting 
‘‘section 
4980H(h)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning on or after January 1, 2006. 
TITLE III—FAIRNESS IN 
DISCLOSURE 
SEC. 301. DISCLOSURE WITH RESPECT TO BENEFITS 
UNDER 
NONQUALIFIED 
DEFERRED 
COM-
PENSATION PLANS. 
(a) IN GENERAL.—Section 101 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1021) 
is amended— 
(1) by redesignating subsection (j) as sub-
section (k); and 
(2) by inserting after subsection (i) the fol-
lowing new subsection:
‘‘(j) DISCLOSURE WITH RESPECT
TO BENEFITS 
UNDER COVERED DEFERRED COMPENSATION PLANS.— 
‘‘(1) IN GENERAL.—In any case in which— 
‘‘(A) an amendment to a pension plan is 
adopted which has the effect of— 
‘‘(i) eliminating future benefit accru-
als under the plan, 
‘‘(ii) converting the plan to a cash bal-
ance plan in a case described in section 
206(g)(1)(B), 
‘‘(iii) reducing the rate of future ben-
efit accruals under the plan (in the case of 
a defined benefit plan), or 
‘‘(iv) reducing future employer con-
tributions under the plan (in the case of a 
defined contribution plan), or 
‘‘(B) the plan administrator of a pension 
plan has filed under section 4041(a)(2) a notice 
of intent to terminate such plan in a distress 
termination under section 4041(c) based on 
bankruptcy reorganization or, in advance of fil-
ing such a notice, has filed a motion with the 
court in the proceedings relating to such bank-
ruptcy reorganization seeking approval to com-
mence proceedings for such a distress termi-
nation, 
the plan administrator shall provide to each plan 
participant and beneficiary a notice under this sub-
section with respect to each covered deferred com-
pensation plan maintained by the plan sponsor of 
the pension plan (and each member of the plan 
sponsor’s controlled group). 
‘‘(2) NOTICE.—A notice required under this 
subsection with respect to a covered deferred com-
pensation plan shall set forth, in language calculated 
to be understood by the average pension plan partic-
ipant— 
‘‘(A) a complete summary description of 
the terms of the covered deferred compensation 
plan, 
‘‘(B) the actuarial present value of the 
benefit liabilities of the covered deferred com-
pensation plan, as of the most recent valuation 
date of such plan, 
‘‘(C) any additional cost to the plan spon-
sor (or to the member of the plan sponsor’s 
controlled group), for the preceding plan year of 
such plan, of maintaining such covered deferred 
compensation plan, including tax expenditures