SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Pension Benefits Pro-
tection and Preservation Act of 1999’’.
SEC. 2. NOTICE REQUIREMENTS FOR PENSION PLANS OF
100 OR MORE PARTICIPANTS SIGNIFICANTLY
REDUCING FUTURE PENSION BENEFIT AC-
CRUALS.
(a) PLAN REQUIREMENT.—Section 401(a) of the In-
ternal Revenue Code of 1986 (relating to qualified pen-
sion, profit-sharing, and stock bonus plans) is amended
by inserting after paragraph (34) the following new para-
graph:
‘‘(35) NOTICE
REQUIREMENTS
FOR
DEFINED
BENEFIT PLANS OF 100 OR MORE PARTICIPANTS SIG-
NIFICANTLY
REDUCING
FUTURE
BENEFIT
ACCRU-
ALS.—
‘‘(A) IN GENERAL.—If a large defined ben-
efit plan adopts an amendment which has the
effect of significantly reducing the rate of fu-
ture benefit accrual of 1 or more participants,
a trust which is part of such plan shall not con-
stitute a qualified trust under this section un-
less, after adoption of such amendment and not
less than 45 days before its effective date, the
plan administrator provides—
‘‘(i) a written statement of benefit
change described in subparagraph (B) to
each applicable individual, and
‘‘(ii) a written notice setting forth the
plan amendment and its effective date to
each employee organization representing
participants in the plan.
Any such notice may be provided to a person
designated, in writing, by the person to which
it would otherwise be provided. The plan ad-
ministrator shall not be treated as failing to
meet the requirements of this subparagraph
merely because the statement or notice is pro-
vided before the adoption of the plan amend-
ment if no material modification of the amend-
ment occurs before the amendment is adopted.
‘‘(B) STATEMENT OF BENEFIT CHANGE.—
A statement of benefit change described in this
subparagraph shall—
‘‘(i) be written in a manner calculated
to be understood by the average plan par-
ticipant, and
‘‘(ii) include the information described
in subparagraph (C).
‘‘(C) INFORMATION CONTAINED IN STATE-
MENT OF BENEFIT CHANGE.—The information
described in this subparagraph includes the fol-
lowing:
‘‘(i) Notice setting forth the plan
amendment and its effective date.
‘‘(ii) A comparison of the following
amounts under the plan with respect to an
applicable individual, determined both with
and without regard to the plan amend-
ment:
‘‘(I) The accrued benefit and the
present value of the accrued benefit as
of the effective date.
‘‘(II) The projected accrued ben-
efit and the projected present value of
the accrued benefit as of the date
which is 3 years, 5 years, and 10
years from the effective date and as of
the normal retirement age.
‘‘(iii) A table of all annuity factors
used to calculate benefits under the plan,
presented in the form provided in section
72 and the regulations thereunder.
Benefits described in clause (ii) shall be stated
separately and shall be calculated by using the
applicable mortality table and the applicable in-
terest rate under section 417(e)(3)(A).
‘‘(D) LARGE DEFINED BENEFIT PLAN; AP-
PLICABLE INDIVIDUAL.—For purposes of this
paragraph—
‘‘(i) 
LARGE
DEFINED
BENEFIT
PLAN.—The term ‘large defined benefit
plan’ means any defined benefit plan which
had 100 or more participants who had ac-
crued 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.
‘‘(ii) APPLICABLE
INDIVIDUAL.—The
term ‘applicable individual’ means—
‘‘(I) each participant in the plan,
and
‘‘(II) each beneficiary who is an
alternate payee (within the meaning
of section 414(p)(8)) under an appli-
cable 
qualified 
domestic 
relations
order (within the meaning of section
414(p)(1)(A)).
‘‘(E) ACCRUED BENEFIT; PROJECTED RE-
TIREMENT
BENEFIT.—For purposes of this
paragraph—
‘‘(i) PRESENT
VALUE
OF
ACCRUED
BENEFIT.—The present value of an ac-
crued benefit of any applicable individual
shall be calculated as if the accrued benefit
were in the form of a single life annuity
commencing at the participant’s normal re-
tirement age (and by taking into account
any early retirement subsidy).
‘‘(ii) 
PROJECTED
ACCRUED
BEN-
EFIT.—
‘‘(I) IN
GENERAL.—The pro-
jected accrued benefit of any applica-
ble individual shall be calculated as if
the benefit were payable in the form
of a single life annuity commencing at
the participant’s normal retirement
age (and by taking into account any
early retirement subsidy).
‘‘(II) 
COMPENSATION
AND
OTHER
ASSUMPTIONS.—Such benefit
shall be calculated by assuming that
compensation and all other benefit