I 
109TH CONGRESS 
1ST SESSION H. R. 4052 
To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to protect pension benefits of employees 
in defined benefit plans and to direct the Secretary of the Treasury 
to enforce the age discrimination requirements of the Internal Revenue 
Code of 1986. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2005 
Mr. SANDERS (for himself, Mr. GUTKNECHT, Mr. GEORGE MILLER of Cali-
fornia, Mr. HINCHEY, Mr. DAVIS of Illinois, Ms. LEE, Mr. BISHOP of 
New York, Ms. WOOLSEY, Mr. EMANUEL, Mr. MURTHA, Mr. TAYLOR of 
Mississippi, Ms. BORDALLO, Mr. OBERSTAR, Mr. BRADY of Pennsylvania, 
Mr. DEFAZIO, Mrs. MALONEY, Mr. BROWN of Ohio, Mr. HOLT, Mr. 
BERRY, Mr. MARKEY, Mr. GRIJALVA, Ms. KILPATRICK of Michigan, Mr. 
LANTOS, Mr. FILNER, Mr. UDALL of New Mexico, Mr. MCGOVERN, Mr. 
KENNEDY of Rhode Island, Mr. FRANK of Massachusetts, Mr. VAN 
HOLLEN, Mr. DOYLE, Mr. PAYNE, Ms. LINDA T. SA´NCHEZ of California, 
Ms. MILLENDER-MCDONALD, Mr. OLVER, Mr. PALLONE, Ms. NORTON, 
Ms. SCHAKOWSKY, Mr. DOGGETT, Mr. EVANS, Mr. VISCLOSKY, Mr. 
MEEK of Florida, Mr. WEXLER, Mr. BOEHLERT, Mr. MEEKS of New 
York, Mr. TIERNEY, Mr. ENGEL, Mr. CONYERS, Ms. ESHOO, Mr. ALLEN, 
Ms. EDDIE BERNICE JOHNSON of Texas, Mr. RUSH, Mr. LYNCH, Mrs. 
NAPOLITANO, Ms. JACKSON-LEE of Texas, Mr. STRICKLAND, Mr. ROSS, 
Mr. SCHIFF, Ms. SLAUGHTER, Mr. MEEHAN, Mr. BLUMENAUER, Mr. 
MICHAUD, Mr. KILDEE, Mrs. CAPPS, Ms. KAPTUR, Mr. CASE, Ms. 
MCCOLLUM of Minnesota, Mr. UDALL of Colorado, Mr. KUCINICH, Mr. 
CUMMINGS, Mr. SCOTT of Virginia, and Ms. DELAURO) introduced the 
following bill; which was referred to the Committee on Education and the 
Workforce, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL 
To amend the Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 to 
protect pension benefits of employees in defined benefit 
plans and to direct the Secretary of the Treasury to 
enforce the age discrimination requirements of the Inter-
nal Revenue Code of 1986. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pension Benefits Pro-
tection Act of 2005’’. 
SEC. 2. PROPER ADMINISTRATION OF INTERNAL REVENUE 
LAWS AND NONDISCRIMINATION REQUIRE-
MENTS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall take no action in contravention of section 
204(b)(1)(G), 204(b)(1)(H)(i), or 204(g) of the Employee 
Retirement Income Security Act of 1974, section 
411(b)(1)(G), 411(b)(1)(H)(i), or 411(d)(6) of the Inter-
nal Revenue Code of 1986, or section 4(i)(1)(A) of the 
Age Discrimination in Employment Act of 1967. 
(b) DIRECTIVE.—The Secretary of the Treasury shall 
apply section 411(b)(1)(H) of the Internal Revenue Code 
of 1986 without regard to the portion of the preamble to 
Treasury Decision 8360 (56 Fed. Reg. 47524–47603,
September 19, 1991) which relates to the allocation of in-
terest adjustments through normal retirement age under 
a cash balance plan, as such preamble is and has been 
since its adoption without the force of law. 
SEC. 3. PROTECTION OF PARTICIPANTS FROM CONVER-
SIONS TO HYBRID DEFINED BENEFIT PLANS. 
(a) ELECTION TO MAINTAIN RATE OF ACCRUAL IN 
EFFECT BEFORE PLAN AMENDMENT.— 
(1) AMENDMENT TO ERISA.—Section 204(b)(1) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1054(b)(1)) is amended by adding 
at the end the following new subparagraph: 
‘‘(I)(i) Notwithstanding the preceding subpara-
graphs, in the case of a plan amendment to a defined ben-
efit plan— 
‘‘(I) which has the effect of converting the plan 
to a plan under which the accrued benefit is ex-
pressed to participants and beneficiaries as an 
amount other than an annual benefit commencing at 
normal retirement age (or which has a similar effect 
as determined under regulations issued under clause 
(iv)), and 
‘‘(II) which has the effect of reducing the rate 
of future benefit accrual of 1 or more participants, 
such plan shall be treated as not satisfying the re-
quirements of this paragraph unless such plan meets 
the requirements of clause (ii). 
‘‘(ii) A plan meets the requirements of this clause if 
the plan provides each participant who has attained 40 
years of age or 10 years of service (as determined under 
section 203) under the plan at the time such amendment 
takes effect with— 
‘‘(I) notice of the plan amendment indicating 
that it has such effect, including a comparison of the 
present and projected values of the accrued benefit 
determined both with and without regard to the plan 
amendment, and 
‘‘(II) an election upon retirement to either re-
ceive benefits under the terms of the plan as in ef-
fect at the time of retirement or to receive benefits 
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) For purposes of clause (i), an accrued benefit 
shall include any early retirement benefit or retirement- 
type subsidy (within the meaning of subsection (g)(2)(A)), 
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) The Secretary shall issue regulations under 
which any plan amendment which has an effect similar 
to the effect described in clause (i)(I) shall be treated as 
a plan amendment described in clause (i)(I). Such regula-
tions may provide that if a plan sponsor represents in com-
munications to participants and beneficiaries that a plan 
amendment has an effect described in the preceding sen-
tence, such plan amendment shall be treated as a plan 
amendment described in clause (i)(I).’’. 
(2) AMENDMENT
TO
INTERNAL
REVENUE 
CODE.—Section 411(b)(1) of the Internal Revenue 
Code of 1986 (relating to accrued benefit require-
ments for defined benefit plans) is amended by add-
ing at the end the following new subparagraph: 
‘‘(I) ELECTION TO MAINTAIN RATE OF AC-
CRUAL
IN
EFFECT
BEFORE
CERTAIN
PLAN 
AMENDMENTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
the preceding subparagraphs, in the case 
of a plan amendment to a defined benefit 
plan— 
‘‘(I) which has the effect of con-
verting the plan to a plan under which
the accrued benefit is expressed to 
participants and beneficiaries as an 
amount other than an annual benefit 
commencing at normal retirement age 
(or which has a similar effect as de-
termined under regulations issued 
under clause (iv)), and 
‘‘(II) which has the effect of re-
ducing the rate of future benefit ac-
crual of 1 or more participants, such 
plan shall be treated as not satisfying 
the requirements of this paragraph 
unless such plan meets the require-
ments of clause (ii). 
‘‘(ii) REQUIREMENTS.—A plan meets 
the requirements of this clause if the plan 
provides each participant who has attained 
40 years of age or 10 years of service (as 
determined under subsection (a)) under 
the plan at the time such amendment 
takes effect with— 
‘‘(I) notice of the plan amend-
ment indicating that it has such ef-
fect, including a comparison of the 
present and projected values of the