‘‘SEC. 4980J. FAILURE OF STATE OR LOCAL GOVERNMENT 
EMPLOYEE PENSION BENEFIT PLANS TO 
MEET REPORTING REQUIREMENTS. 
‘‘(a) ANNUAL REPORT.—For purposes of section 
149A, the requirements of this subsection are as follows: 
‘‘(1) IN
GENERAL.—The plan sponsor of a 
State or local government employee pension benefit 
plan shall file with the Secretary, in such form and 
manner as shall be prescribed by the Secretary, a re-
port for each plan year beginning on or after Janu-
ary 1, 2011, setting forth the following information 
with respect to the plan, as determined by the plan 
sponsor as of the end of such plan year: 
‘‘(A) A schedule of funding status, which 
shall include a statement as to the current li-
ability of the plan, the amount of plan assets 
available to meet that liability, the amount of 
the net unfunded liability (if any), and the 
funding percentage of the plan. 
‘‘(B) A schedule of contributions by the 
plan sponsor for the plan year, indicating which 
are or are not taken into account under sub-
paragraph (A). 
‘‘(C) Alternative projections which shall be 
specified in regulations of the Secretary for 
each of the next 20 plan years following the 
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plan year relating to the amount of annual con-
tributions, the fair market value of plan assets, 
current liability, the funding percentage, and 
such other matters as the Secretary may specify 
in such regulations, together with a statement 
of the assumptions and methods used in con-
nection with such projections, including as-
sumptions related to funding policy, plan 
changes, future workforce projections, future 
investment returns, and such other matters as 
the Secretary may specify in such regulations. 
The Secretary shall specify in such regulations 
the projection assumptions and methods to be 
used as necessary to achieve comparability 
across plans. 
‘‘(D) A statement of the actuarial assump-
tions used for the plan year, including the rate 
of return on investment of plan assets and as-
sumptions as to such other matters as the Sec-
retary may prescribe by regulation. 
‘‘(E) A statement of the number of partici-
pants who are each of the following— 
‘‘(i) those who are retired or sepa-
rated from service and are receiving bene-
fits, 
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‘‘(ii) those who are retired or sepa-
rated and are entitled to future benefits, 
and 
‘‘(iii) those who are active under the 
plan. 
‘‘(F) A statement of the plan’s investment 
returns, including the rate of return, for the 
plan year and the 5 preceding plan years. 
‘‘(G) A statement of the degree to which, 
and manner in which, the plan sponsor expects 
to eliminate any unfunded current liability that 
may exist for the plan year and the extent to 
which the plan sponsor has followed the plan’s 
funding policy for each of the preceding 5 plan 
years. The Secretary shall prescribe by regula-
tion the specific criteria to be used for meeting 
the requirements of this paragraph. 
‘‘(H) A statement of the amount of pen-
sion obligation bonds outstanding. 
‘‘(2) TIMING OF REPORT.—The plan sponsor of 
a State or local government employee pension ben-
efit plan shall make the filing required under para-
graph (1) for each plan year not later than 210 days 
after the end of such plan year (or within such time 
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as may be required by regulations prescribed by the 
Secretary in order to reduce duplicative filing). 
‘‘(b) ADDITIONAL REPORTING REQUIREMENTS.— 
For purposes of section 149A, the requirements of this 
subsection are as follows: 
‘‘(1) SUPPLEMENTARY REPORTS.—In any case 
in which, in determining the information filed in the 
annual report for a plan year under subsection (a)— 
‘‘(A) the value of plan assets is determined 
using a standard other than fair market value, 
or 
‘‘(B) the interest rate or rates used to de-
termine the value of liabilities or as the dis-
count value for liabilities are not the interest 
rates described in paragraph (3), 
the plan sponsor shall include in the annual report 
filed for such plan year pursuant to subsection (a) 
the supplementary report for such plan year de-
scribed in paragraph (2) of this subsection. 
‘‘(2) USE OF PRESCRIBED VALUATION METHOD 
AND INTEREST RATES.—A supplementary report for 
a plan year filed for a plan year pursuant to this 
subsection shall include the information specified as 
required in the annual report under subparagraphs 
(A), (C), (F), and (G) of subsection (a)(1), deter-
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mined as of the end of such plan year by valuing 
plan assets at fair market value and by using the in-
terest rates described in paragraph (3) to value li-
abilities and as the discount value for liabilities. 
‘‘(3) INTEREST RATES BASED ON U.S. TREAS-
URY OBLIGATION YIELD CURVE RATE.— 
‘‘(A) IN GENERAL.—The interest rates de-
scribed in this subsection are— 
‘‘(i) in the case of benefits reasonably 
determined to be payable during the 5-year 
period beginning on the first day of the 
plan year, the first segment rate with re-
spect to the applicable month, 
‘‘(ii) in the case of benefits reasonably 
determined to be payable during the 15- 
year period beginning at the end of the pe-
riod described in subparagraph (A), the 
second segment rate with respect to the 
applicable month, and 
‘‘(iii) in the case of benefits reason-
ably determined to be payable after the pe-
riod described in clause (ii), the third seg-
ment rate with respect to the applicable 
month. 
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‘‘(B) SEGMENT RATES.—For purposes of 
this paragraph— 
‘‘(i) FIRST
SEGMENT
RATE.—The 
term ‘first segment rate’ means, with re-
spect to any month, the single rate of in-
terest which shall be determined by the 
Secretary for such month on the basis of 
the U.S. Treasury obligation yield curve 
for such month, taking into account only 
that portion of such yield curve which is 
based on obligations maturing during the 
5-year period commencing with such 
month. 
‘‘(ii) SECOND
SEGMENT
RATE.—The 
term ‘second segment rate’ means, with re-
spect to any month, the single rate of in-
terest which shall be determined by the 
Secretary for such month on the basis of 
the U.S. Treasury obligation yield curve 
for such month, taking into account only 
that portion of such yield curve which is 
based on obligations maturing during the 
15-year period beginning at the end of the 
period described in clause (i). 
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‘‘(iii) THIRD
SEGMENT
RATE.—The 
term ‘third segment rate’ means, with re-
spect to any month, the single rate of in-
terest which shall be determined by the 
Secretary for such month on the basis of 
the U.S. Treasury obligation yield curve 
for such month, taking into account only 
that portion of such yield curve which is 
based on obligations maturing during peri-
ods beginning after the period described in 
clause (ii). 
‘‘(C) U.S. TREASURY OBLIGATION YIELD 
CURVE.—For purposes of this subsection, the 
term ‘U.S. Treasury obligation yield curve’ 
means, with respect to any month, a yield curve 
which shall be prescribed by the Secretary for 
such month and which reflects the average, for 
the 24-month period ending with the month 
preceding such month, of monthly yields on in-
terest-bearing obligations of the United States. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) STATE
OR
LOCAL
GOVERNMENT
EM-
PLOYEE PENSION BENEFIT PLAN.—The terms ‘State 
or local government employee pension benefit plan’ 
and ‘plan’ mean any plan, fund, or program, other 
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than a defined contribution plan (within the mean-
ing of section 414(i)), which was heretofore or is 
hereafter established or maintained, in whole or in 
part, by a State, a political subdivision of a State, 
or any agency or instrumentality of a State or polit-
ical subdivision of a State, to the extent that by its 
express terms or as a result of surrounding cir-
cumstances such plan, fund, or program— 
‘‘(A) provides retirement income to em-
ployees, or 
‘‘(B) results in a deferral of income by em-
ployees for periods extending to the termination 
of covered employment or beyond, regardless of 
the method of calculating the contributions 
made to the plan, the method of calculating the 
benefits under the plan, or the method of dis-
tributing benefits from the plan. 
‘‘(2) FUNDING PERCENTAGE.—The term ‘fund-
ing percentage’ for a plan year means the ratio (ex-
pressed as a percentage) which— 
‘‘(A) the value of plan assets as of the end 
of the plan year bears to 
‘‘(B) the current liability of the plan for 
the plan year. 
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‘‘(3) CURRENT LIABILITY.—The term ‘current 
liability’ of a plan for a plan year means the present 
value of all benefits accrued or earned under the 
plan as of the end of the plan year. 
‘‘(4) PLAN SPONSOR.—The term ‘plan sponsor’ 
means, in connection with a State or local govern-
ment employee pension benefit plan, the State, polit-
ical subdivision of a State, or agency or instrumen-
tality of a State or a political subdivision of a State 
which establishes or maintains the plan. 
‘‘(5) PARTICIPANT.— 
‘‘(A) IN GENERAL.—The term ‘participant’ 
means, in connection with a State or local gov-
ernment employee pension benefit plan, an indi-
vidual— 
‘‘(i) who is an employee or former em-
ployee of a State, political subdivision of a 
State, or agency or instrumentality of a 
State or a political subdivision of a State 
which is the plan sponsor of such plan, and 
‘‘(ii) who is or may become eligible to 
receive a benefit of any type from such 
plan or whose beneficiaries may be eligible 
to receive any such benefit. 
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‘‘(B) BENEFICIARY.—The term ‘bene-
ficiary’ means a person designated by a partici-
pant, or by the terms of the plan, who is or 
may become entitled to a benefit thereunder. 
‘‘(6) PLAN YEAR.—The term ‘plan year’ means, 
in connection with a plan, the calendar or fiscal year 
on which the records of the plan are kept. 
‘‘(7) STATE.—The term ‘State’ includes any 
State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Is-
lands, American Samoa, Guam, and the Common-
wealth of the Northern Mariana Islands. 
‘‘(8) FAIR
MARKET
VALUE.—The term ‘fair 
market value’ has the meaning of such term under 
section 430(g)(3)(A) (without regard to section 
430(g)(3)(B)). 
‘‘(d) MODEL REPORTING STATEMENT.—The Sec-
retary shall develop model reporting statements for pur-
poses of subsections (a) and (b). Plan sponsors of State 
or local government employee pension plans may elect, in 
such form and manner as shall be prescribed by the Sec-
retary, to utilize the applicable model reporting statement 
for purposes of complying with requirements of such sub-
sections. 
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‘‘(e) TRANSPARENCY OF INFORMATION FILED.—The 
Secretary shall create and maintain a public Web site, 
with searchable capabilities, for purposes of posting the 
information received by the Secretary pursuant to sub-
sections (a) and (b). Any such information received by the 
Secretary (including any updates to such information re-
ceived by the Secretary) shall be posted on the Web site 
not later than 60 days after receipt and shall not be treat-
ed as return information for purposes of this title.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) The table of sections for subpart B of part 
IV of subchapter B of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 149A. Reporting with respect to State or local government employee pen-
sion benefit plans.’’. 
(2) The table of sections for chapter 43 of such 
Code is amended by adding at the end the following 
new item: 
‘‘Sec. 4980J. Failure of State or local government employee pension benefit 
plans to meet reporting requirements.’’. 
SEC. 4. GENERAL PROVISIONS AND RULES OF CONSTRUC-
TION. 
(a) LIMITATIONS
ON FEDERAL RESPONSIBILITIES 
RELATING TO PLAN OBLIGATIONS AND LIABILITIES.— 
The United States shall not be liable for any obligation 
related to any current or future shortfall in any State or 
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local government employee pension plan. Nothing in this 
Act (or any amendment made by this Act) or any other 
provision of law shall be construed to provide Federal Gov-
ernment funds to diminish or meet any current or future 
shortfall in, or obligation of, any State or local government 
employee pension plan. The preceding sentence shall also 
apply to the Federal Reserve. 
(b) NO FEDERAL FUNDING STANDARDS.—Nothing 
in this Act (or any amendment made by this Act) shall 
be construed to alter existing funding standards for State 
or local government employee pension plans or to require 
Federal funding standards for such plans. 
(c) DEFINITIONS.—Terms used in this section which 
are also used in section 4980J of the Internal Revenue 
Code of 1986 shall have the same meaning as when used 
in such section. 
Æ 
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