accrued benefit determined both with 
and without regard to the plan 
amendment, and 
‘‘(II) an election upon retirement 
to either receive benefits under the 
terms of the plan as in effect at the 
time of retirement or to receive bene-
fits under the terms of the plan as in 
effect immediately before the effective 
date of such plan amendment (taking 
into account all benefit accruals under 
such terms since such date). 
‘‘(iii) TREATMENT OF EARLY RETIRE-
MENT
BENEFITS
AND
RETIREMENT-TYPE 
SUBSIDIES.—For purposes of clause (i), an 
accrued benefit shall include any early re-
tirement benefit or retirement-type subsidy 
(within 
the 
meaning 
of 
subsection 
(d)(6)(B)(i)), but only with respect to a 
participant who satisfies (either before or 
after the effective date of the amendment) 
the conditions for the benefit or subsidy 
under the terms of the plan as in effect 
immediately before such date.
‘‘(iv) REGULATIONS.—The Secretary 
shall issue regulations under which any 
plan amendment which has an effect simi-
lar to the effect described in clause (i)(I) 
shall be treated as a plan amendment de-
scribed in clause (i)(I). Such regulations 
may provide that if a plan sponsor rep-
resents in communications to participants 
and beneficiaries that a plan amendment 
has an effect described in the preceding 
sentence, such plan amendment shall be 
treated as a plan amendment described in 
clause (i)(I).’’. 
(b) EFFECTIVE DATE AND RELATED RULES.— 
(1) IN GENERAL.—The amendments made by 
this section apply to plan amendments taking effect 
before, on, or after the date of the enactment of this 
Act. 
(2) SPECIAL
RULE.—In the case of a plan 
amendment taking effect before 90 days after the 
date of the enactment of this Act, the requirements 
of section 204(b)(1)(I) of the Employee Retirement 
Income Security Act of 1974 (as added by this sec-
tion) and section 411(b)(1)(I) of the Internal Rev-
enue Code of 1986 (as added by this section) shall
be treated as satisfied in connection with such plan 
amendment, in the case of any participant described 
in such sections 204(b)(1)(I) and 411(b)(1)(I) in 
connection with such plan amendment, if, as of the 
end of such 90-day period— 
(A) the notice described in clause (i)(I) of 
such section 204(b)(1)(I) and clause (i)(I) of 
such section 411(b)(1)(I) in connection with 
such plan amendment has been provided to 
such participant, and 
(B) the plan provides for the election de-
scribed in clause (i)(II) of such section 
204(b)(1)(I) and clause (i)(II) of such section 
411(b)(1)(I) in connection with such partici-
pant’s retirement under the plan. 
SEC. 4. PREVENTION OF WEARING AWAY OF EMPLOYEE’S 
ACCRUED BENEFIT. 
(a) AMENDMENT TO ERISA.—Section 204(g) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1054(g)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6)(A) For purposes of paragraph (1), an applicable 
plan amendment adopted by a large defined benefit plan 
shall be treated as reducing accrued benefits of a partici-
pant if, under the terms of the plan after the adoption
of the amendment, the accrued benefit of the participant 
may at any time be less than the sum of— 
‘‘(i) the participant’s accrued benefit for years 
of service before the effective date of the amend-
ment, determined under the terms of the plan as in 
effect immediately before the effective date, plus 
‘‘(ii) the participant’s accrued benefit deter-
mined under the formula applicable to benefit accru-
als under the current plan as applied to years of 
service after such effective date. 
‘‘(B) For purposes of this paragraph— 
‘‘(i) The term ‘applicable plan amendment’ 
means a plan amendment which has the effect of 
converting the plan to a plan under which the ac-
crued benefit is expressed to participants and bene-
ficiaries as an amount other than an annual benefit 
commencing at normal retirement age (or which has 
a similar effect as determined under regulations of 
the Secretary). 
‘‘(ii) The term ‘large defined benefit plan’ 
means any defined benefit plan which had 100 or 
more participants who had accrued a benefit under 
the plan (whether or not vested) as of the last day 
of the plan year preceding the plan year in which 
the plan amendment becomes effective.
‘‘(iii) An accrued benefit shall include any early 
retirement benefit or retirement-type subsidy (within 
the meaning of paragraph (2)(A)), but only with re-
spect to a participant who satisfies (either before or 
after the effective date of the amendment) the condi-
tions for the benefit or subsidy under the terms of 
the plan as in effect immediately before such date.’’. 
(b) AMENDMENT TO INTERNAL REVENUE CODE.— 
Section 411(d)(6) of the Internal Revenue Code of 1986 
(relating to accrued benefit may not be decreased by 
amendment) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) TREATMENT OF PLAN AMENDMENTS 
WEARING AWAY ACCRUED BENEFIT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), an applicable plan 
amendment adopted by a large defined 
benefit plan shall be treated as reducing 
accrued benefits of a participant if, under 
the terms of the plan after the adoption of 
the amendment, the accrued benefit of the 
participant may at any time be less than 
the sum of— 
‘‘(I) the participant’s accrued 
benefit for years of service before the
effective date of the amendment, de-
termined under the terms of the plan 
as in effect immediately before the ef-
fective date, plus 
‘‘(II) the participant’s accrued 
benefit determined under the formula 
applicable to benefit accruals under 
the current plan as applied to years of 
service after such effective date. 
‘‘(ii) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) APPLICABLE PLAN AMEND-
MENT.—The term ‘applicable plan 
amendment’ means a plan amendment 
which has the effect of converting the 
plan to a plan under which the ac-
crued benefit is expressed to partici-
pants and beneficiaries as an amount 
other than an annual benefit com-
mencing at normal retirement age (or 
which has a similar effect as deter-
mined under regulations of the Sec-
retary). 
‘‘(II) LARGE DEFINED BENEFIT 
PLAN.—The term ‘large defined ben-
efit plan’ means any defined benefit 
plan which had 100 or more partici-
pants who had accrued a benefit 
under the plan (whether or not vest-
ed) as of the last day of the plan year 
preceding the plan year in which the 
plan amendment becomes effective. 
‘‘(III) 
PROTECTED
ACCRUED 
BENEFIT.—An accrued benefit shall 
include any early retirement benefit or 
retirement-type subsidy (within the 
meaning of subparagraph (B)(i)), but 
only with respect to a participant who 
satisfies (either before or after the ef-
fective date of the amendment) the 
conditions for the benefit or subsidy 
under the terms of the plan as in ef-
fect immediately before such date.’’. 
(c) EFFECTIVE DATE AND RELATED RULES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
apply to plan amendments taking effect before, on, 
or after the date of the enactment of this Act. 
(2) SPECIAL
RULE.—Notwithstanding para-
graph (1), the amendments made by this section
shall not apply in connection with any participant 
with respect to any plan amendment which has 
taken effect before 90 days after the date of the en-
actment of this Act if, as of the end of such 90-day 
period, the plan provides that the participant’s ac-
crued benefit shall at no time be less than the sum 
described in section 204(g)(6)(A) of the Employee 
Retirement Income Security Act of 1974 (as added 
by this section) or section 411(d)(6)(F)(i) of the In-
ternal Revenue Code of 1986 (as added by this sec-
tion) in connection with such plan amendment. 
Æ