(or alleged violation) of part 4 of this subtitle,
or
‘‘(iii) pursuant to a settlement agreement
between the Secretary and the participant, or a
settlement agreement between the Pension Ben-
efit Guaranty Corporation and the participant,
in connection with a violation (or alleged viola-
tion) of part 4 by a fiduciary or any other per-
son,
‘‘(B) the judgment, order, decree, or settlement
agreement expressly provides for the offset, and
‘‘(C) in any case in which the participant has
a spouse at the time at which the offset is to be
made—
‘‘(i) the spouse has consented in writing to
the offset and the consent is witnessed by a no-
tary public or representative of the plan,
‘‘(ii) the offset represents an amount which
the spouse is ordered in the judgment to pay to
the plan, or
‘‘(iii) in the judgment, order, decree, or
settlement, the spouse retains the right to re-
ceive the value of the survivor annuity under a
qualified joint and survivor annuity provided
pursuant to section 205(a)(1) and under a
qualified preretirement survivor annuity pro-
vided pursuant to section 205(a)(2), determined
in accordance with paragraph (5).
‘‘(5)(A) The value of the survivor annuity described
in paragraph (4)(C)(iii) shall be determined as if—
‘‘(i) the participant terminated employment on
the date of the offset,
‘‘(ii) there was no offset,
‘‘(iii) the plan permitted retirement only on or
after normal retirement age,
‘‘(iv) the plan provided only the minimum-re-
quired qualified joint and survivor annuity, and
‘‘(v) the amount of the qualified preretirement
survivor annuity under the plan is equal to the
amount of the survivor annuity payable under the
minimum-required qualified joint and survivor annu-
ity.
‘‘(B) For purposes of this paragraph, the term ‘mini-
mum-required qualified joint and survivor annuity’ means
the qualified joint and survivor annuity which is the actu-
arial equivalent of a single annuity for the life of the par-
ticipant and under which the survivor annuity is 50 per-
cent of the amount of the annuity which is payable during
the joint lives of the participant and the spouse.’’.
(2) EFFECTIVE DATE.—The amendments made
by this section apply to judgments, orders, and de-
crees issued, and settlement agreements entered
into, on or after the date of enactment of this Act.
(b) CONFORMING AMENDMENTS TO THE INTERNAL
REVENUE CODE RELATING TO ERISA ENFORCEMENT.—
(1) SPECIAL RULE FOR CERTAIN JUDGMENTS
AND SETTLEMENTS.—Section 401(a)(13) of the In-
ternal 
Revenue 
Code 
of 
1986 
(26 
U.S.C.
401(a)(13)) is amended by adding at the end the
following new subparagraphs:
‘‘(C) SPECIAL RULE FOR CERTAIN JUDG-
MENTS AND SETTLEMENTS.—Subparagraph (A)
shall not apply to any offset of a participant’s
accrued benefit in a plan against an amount
that the participant is ordered or required to
pay to the plan if—
‘‘(i) the order or requirement to pay
arises—
‘‘(I) under a judgment of convic-
tion for a crime involving such plan,
‘‘(II) under a civil judgment (in-
cluding a consent order or decree) en-
tered by a court in an action brought
in connection with a violation (or al-
leged violation) of part 4 of subtitle B
of title I of the Employee Retirement
Income Security Act of 1974, or
‘‘(III) pursuant to a settlement
agreement between the Secretary of
Labor and the participant, or a settle-
ment agreement between the Pension
Benefit Guaranty Corporation and the
participant, in connection with a viola-
tion (or alleged violation) of part 4 of
subtitle B of title I of such Act,
‘‘(ii) the judgment, order, decree, or
settlement agreement expressly provides
for the offset of all or part of the amount
ordered or required to be paid to the plan
against the participant’s accrued benefit in
the plan, and
‘‘(iii) if the participant has a spouse
at the time at which the offset is to be
made—
‘‘(I) such spouse has consented
in writing to such offset and such con-
sent is witnessed by a notary public or
representative of the plan,