HR 1000 RFS 
(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, 
and 
(2) by inserting at the end the following new 
paragraph: 
‘‘(2) The corporation is authorized to pay, subject to 
regulations prescribed by the corporation, interest on the 
amount of any overpayment of premium refunded to a des-
ignated payor. Interest under this paragraph shall be cal-
culated at the same rate and in the same manner as inter-
est is calculated for underpayments under paragraph 
(1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to interest accruing for periods 
beginning not earlier than the date of the enactment of 
this Act. 
SEC. 213. SUBSTANTIAL OWNER BENEFITS IN TERMINATED 
PLANS. 
(a) MODIFICATION OF PHASE-IN OF GUARANTEE.—
Section 4022(b)(5) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1322(b)(5)) is amended 
to read as follows: 
‘‘(5)(A) For purposes of this paragraph, the term 
‘majority owner’ means an individual who, at any time 
during the 60-month period ending on the date the deter-
mination is being made—
HR 1000 RFS 
‘‘(i) owns the entire interest in an unincor-
porated trade or business, 
‘‘(ii) in the case of a partnership, is a partner 
who owns, directly or indirectly, 50 percent or more 
of either the capital interest or the profits interest 
in such partnership, or 
‘‘(iii) in the case of a corporation, owns, directly 
or indirectly, 50 percent or more in value of either 
the voting stock of that corporation or all the stock 
of that corporation. 
For purposes of clause (iii), the constructive ownership 
rules of section 1563(e) of the Internal Revenue Code of 
1986 shall apply (determined without regard to section 
1563(e)(3)(C)). 
‘‘(B) In the case of a participant who is a majority 
owner, the amount of benefits guaranteed under this sec-
tion shall equal the product of—
‘‘(i) a fraction (not to exceed 1) the numerator 
of which is the number of years from the later of the 
effective date or the adoption date of the plan to the 
termination date, and the denominator of which is 
10, and 
‘‘(ii) the amount of benefits that would be guar-
anteed under this section if the participant were not 
a majority owner.’’.
HR 1000 RFS 
(b) MODIFICATION OF ALLOCATION OF ASSETS.—
(1) Section 4044(a)(4)(B) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1344(a)(4)(B)) is amended by striking ‘‘section 
4022(b)(5)’’ and inserting ‘‘section 4022(b)(5)(B)’’. 
(2) Section 4044(b) of such Act (29 U.S.C. 
1344(b)) is amended—
(A) by striking ‘‘(5)’’ in paragraph (2) and 
inserting ‘‘(4), (5),’’, and 
(B) 
by 
redesignating 
paragraphs 
(3) 
through (6) as paragraphs (4) through (7), re-
spectively, and by inserting after paragraph (2) 
the following new paragraph: 
‘‘(3) If assets available for allocation under 
paragraph (4) of subsection (a) are insufficient to 
satisfy in full the benefits of all individuals who are 
described in that paragraph, the assets shall be allo-
cated first to benefits described in subparagraph (A) 
of that paragraph. Any remaining assets shall then 
be allocated to benefits described in subparagraph 
(B) of that paragraph. If assets allocated to such 
subparagraph (B) are insufficient to satisfy in full 
the benefits described in that subparagraph, the as-
sets shall be allocated pro rata among individuals on 
the basis of the present value (as of the termination
HR 1000 RFS 
date) of their respective benefits described in that 
subparagraph.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 4021 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1321) is 
amended—
(A) in subsection (b)(9), by striking ‘‘as 
defined in section 4022(b)(6)’’, and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) For purposes of subsection (b)(9), the term ‘sub-
stantial owner’ means an individual who, at any time dur-
ing the 60-month period ending on the date the determina-
tion is being made—
‘‘(1) owns the entire interest in an unincor-
porated trade or business, 
‘‘(2) in the case of a partnership, is a partner 
who owns, directly or indirectly, more than 10 per-
cent of either the capital interest or the profits inter-
est in such partnership, or 
‘‘(3) in the case of a corporation, owns, directly 
or indirectly, more than 10 percent in value of either
the voting stock of that corporation or all the stock 
of that corporation.
HR 1000 RFS 
For purposes of paragraph (3), the constructive ownership 
rules of section 1563(e) of the Internal Revenue Code of 
1986 shall apply (determined without regard to section 
1563(e)(3)(C)).’’. 
(2) Section 4043(c)(7) of such Act (29 U.S.C. 
1343(c)(7)) is amended by striking ‘‘section 4022(b)(6)’’ 
and inserting ‘‘section 4021(d)’’. 
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to plan terminations—
(A) under section 4041(c) of the Employee 
Retirement Income Security Act of 1974 (29 
U.S.C. 1341(c)) with respect to which notices 
of intent to terminate are provided under sec-
tion 4041(a)(2) of such Act (29 U.S.C. 
1341(a)(2)) after December 31, 2003, and 
(B) under section 4042 of such Act (29 
U.S.C. 1342) with respect to which proceedings 
are instituted by the corporation after such 
date. 
(2) CONFORMING AMENDMENTS.—The amend-
ments made by subsection (c) shall take effect on 
January 1, 2004.
HR 1000 RFS 
SEC. 214. BENEFIT SUSPENSION NOTICE. 
(a) MODIFICATION OF REGULATION.—The Secretary 
of Labor shall modify the regulation under subparagraph 
(B) of section 203(a)(3) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1053(a)(3)(B)) to 
provide that the notification required by such regulation 
in connection with any suspension of benefits described in 
such subparagraph—
(1) in the case of an employee who returns to 
service described in section 203(a)(3)(B)(i) or (ii) of 
such Act after commencement of payment of bene-
fits under the plan, shall be made during the first 
calendar month or the first 4 or 5-week payroll pe-
riod ending in a calendar month in which the plan 
withholds payments, and 
(2) in the case of any employee who is not de-
scribed in paragraph (1)—
(A) may be included in the summary plan 
description for the plan furnished in accordance 
with section 104(b) of such Act (29 U.S.C. 
1024(b)), rather than in a separate notice, and 
(B) need not include a copy of the relevant 
plan provisions. 
(b) EFFECTIVE
DATE.—The modification made 
under this section shall apply to plan years beginning after 
December 31, 2003.
HR 1000 RFS 
SEC. 215. STUDIES. 
(a) MODEL
SMALL
EMPLOYER
GROUP
PLANS 
STUDY.—As soon as practicable after the date of the en-
actment of this Act, the Secretary of Labor, in consulta-
tion with the Secretary of the Treasury, shall conduct a 
study to determine—
(1) the most appropriate form or forms of—
(A) employee pension benefit plans which 
would—
(i) be simple in form and easily main-
tained by multiple small employers, and 
(ii) provide for ready portability of 
benefits for all participants and bene-
ficiaries, 
(B) alternative arrangements providing 
comparable benefits which may be established 
by employee or employer associations, and 
(C) alternative arrangements providing 
comparable benefits to which employees may 
contribute in a manner independent of employer 
sponsorship, and 
(2) appropriate methods and strategies for 
making pension plan coverage described in para-
graph (1) more widely available to American work-
ers.
HR 1000 RFS 
(b) MATTERS TO BE CONSIDERED.—In conducting 
the study under subsection (a), the Secretary of Labor 
shall consider the adequacy and availability of existing em-
ployee pension benefit plans and the extent to which exist-
ing models may be modified to be more accessible to both 
employees and employers. 
(c) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of Labor 
shall report the results of the study under subsection (a), 
together with the Secretary’s recommendations, to the 
Committee on Education and the Workforce and the Com-
mittee on Ways and Means of the House of Representa-
tives and the Committee on Health, Education, Labor, 
and Pensions and the Committee on Finance of the Sen-
ate. Such recommendations shall include one or more 
model plans described in subsection (a)(1)(A) and model 
alternative 
arrangements 
described 
in 
subsections 
(a)(1)(B) and (a)(1)(C) which may serve as the basis for 
appropriate administrative or legislative action. 
(d) STUDY ON EFFECT OF LEGISLATION.—Not later 
than 5 years after the date of the enactment of this Act, 
the Secretary of Labor shall submit to the Committee on 
Education and the Workforce of the House of Representa-
tives and the Committee on Health, Education, Labor, 
and Pensions of the Senate a report on the effect of the
HR 1000 RFS 
provisions of this Act and title VI of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 on pension plan 
coverage, including any change in—
(1) the extent of pension plan coverage for low 
and middle-income workers, 
(2) the levels of pension plan benefits generally, 
(3) the quality of pension plan coverage gen-
erally, 
(4) workers’ access to and participation in pen-
sion plans, and 
(5) retirement security.
SEC. 216. INTEREST RATE RANGE FOR ADDITIONAL FUND-
ING REQUIREMENTS. 
(a) IN
GENERAL.—Subclause (III) of section 
412(l)(7)(C)(i) of the Internal Revenue Code of 1986 is 
amended—
(1) by striking ‘‘2002 or 2003’’ in the text and 
inserting ‘‘2001, 2002, or 2003’’, and 
(2) by striking ‘‘2002 AND 2003’’ in the heading 
and inserting ‘‘2001, 2002, AND 2003’’. 
(b) SPECIAL
RULE.—Subclause (III) of section 
302(d)(7)(C)(i) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1082(d)(7)(C)(i)) is amend-
ed—
HR 1000 RFS 
(1) by striking ‘‘2002 or 2003’’ in the text and 
inserting ‘‘2001, 2002, or 2003’’, and
(2) by striking ‘‘2002 AND 2003’’ in the heading 
and inserting ‘‘2001, 2002, AND 2003’’. 
(c) 
PBGC.—Subclause 
(IV) 
of 
section 
4006(a)(3)(E)(iii) 
of 
such 
Act 
(29 
U.S.C. 
1306(a)(3)(E)(iii)) is amended to read as follows—
‘‘(IV) In the case of plan years beginning after 
December 31, 2001, and before January 1, 2004, 
subclause (II) shall be applied by substituting ‘100 
percent’ for ‘85 percent’ and by substituting ‘115 
percent’ for ‘100 percent’. Subclause (III) shall be 
applied for such years without regard to the pre-
ceding sentence. Any reference to this clause or this 
subparagraph by any other sections or subsections 
(other than sections 4005, 4010, 4011 and 4043) 
shall be treated as a reference to this clause or this 
subparagraph without regard to this subclause.’’. 
(d) EFFECTIVE DATE.—
(1) GENERAL RULE.—Subject to paragraph (2), 
the amendments made by this section shall take ef-
fect as if included in the amendments made by sec-
tion 405 of the Job Creation and Worker Assistance 
Act of 2002.
HR 1000 RFS 
(2) ELECTION.—The plan sponsor or plan ad-
ministrator of a plan may elect whether to have the 
amendments made by subsections (a) and (b) apply. 
Such election shall be made in such manner and at 
such time as the Secretary of the Treasury or his 
delegate may prescribe and, once made, may not be 
revoked. An election to apply such amendments shall 
not be treated as a prohibited change in actuarial 
assumptions for purposes of reports required to be 
filed with the Secretary of Labor, the Secretary of 
Treasury, or the Pension Benefit Guaranty Corpora-
tion. 
TITLE III—GENERAL 
PROVISIONS 
SEC. 301. PROVISIONS RELATING TO PLAN AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any pen-
sion plan or contract amendment—
(1) such pension plan or contract shall be treat-
ed as being operated in accordance with the terms 
of the plan during the period described in subsection 
(b)(2)(A), and 
(2) except as provided by the Secretary of the 
Treasury, such pension plan shall not fail to meet 
the requirements of section 411(d)(6) of the Internal 
Revenue Code of 1986 and section 204(g) of the
HR 1000 RFS 
Employee Retirement Income Security Act of 1974 
by reason of such amendment. 
(b) AMENDMENTS TO WHICH SECTION APPLIES.—
(1) IN GENERAL.—This section shall apply to 
any amendment to any pension plan or annuity con-
tract which is made—
(A) pursuant to any amendment made by 
this Act or by title VI of the Economic Growth 
and Tax Relief Reconciliation Act of 2001, or 
pursuant to any regulation issued by the Sec-
retary of the Treasury or the Secretary of 
Labor under this Act or such title VI, and 
(B) on or before the last day of the first 
plan year beginning on or after January 1, 
2006. 
In the case of a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986), this paragraph shall be applied by sub-
stituting ‘‘2008’’ for ‘‘2006’’. 
(2) CONDITIONS.—This section shall not apply 
to any amendment unless—
(A) during the period—
(i) beginning on the date the legisla-
tive or regulatory amendment described in 
paragraph (1)(A) takes effect (or in the
HR 1000 RFS 
case of a plan or contract amendment not 
required by such legislative or regulatory 
amendment, the effective date specified by 
the plan), and 
(ii) ending on the date described in 
paragraph (1)(B) (or, if earlier, the date 
the plan or contract amendment is adopt-
ed), 
the plan or contract is operated as if such plan 
or contract amendment were in effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period.
Passed the House of Representatives May 14, 2003. 
Attest: 
JEFF TRANDAHL, 
Clerk. 
By MARTHA C. MORRISON, 
Deputy Clerk.