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‘‘(II) For the period commencing
with the date of termination from em-
ployment until the normal retirement
date for full benefits under the plan,
a discount rate of not more than 3
percent shall be utilized. In addition,
for the period between termination of
employment and until the normal re-
tirement date for full benefits under
the plan, the resulting present value
shall be determined as if the payment
at the normal retirement date is not
contingent on the survival of any per-
son to that date.
‘‘(III) The formulas shall utilize
unisex mortality tables constructed to
reflect the experience of the plan re-
garding the percentages of males and
females in the plan.
‘‘(ii) PHASE-IN.—For plan years be-
ginning in 1995 or 1996, the following per-
centages shall be substituted for 3 percent
in subparagraph (i)(b)
‘‘For plan years
beginning in
The percentage is
1995 ...........................................................
1996 ...........................................................
4.
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‘‘(4) OTHER
DEFINITIONS
AND
RULES.—For
purposes of this subsection.—
‘‘(A) QUALIFIED PLAN.—The term ‘quali-
fied plan’ means—
‘‘(i) a plan described in section 401(a)
of the Internal Revenue Code of 1986
which includes a trust which is exempt
from tax under section 501(a) of such
Code,
‘‘(ii) an annuity plan described in sec-
tion 403(a) of such Code, and
‘‘(iii) an annuity contract described in
section 403(b) of such Code.
‘‘(B) INDIVIDUAL
RETIREMENT
PLAN.—
The term ‘individual retirement plan’ means—
‘‘(i) an individual retirement account
described in section 408(a) of such Code,
and
‘‘(ii) an individual retirement annuity
described in section 408(b) of such Code.
‘‘(C) DIRECT
TRANSFER.—For the pur-
poses of this section, the term ‘direct transfer’
means a direct rollover from a qualified plan
described in Subparagraph 411(f)(4), a trustee-
to-trustee transfer between accounts established
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by individuals in such plans, and transfers be-
tween annuity contracts described in sections
403(a) and 403(b) of the Code.
‘‘(D) BENEFICIARIES OR ALTERNATE PAY-
EES.—In the case of an individual who is a ben-
eficiary of the participant or an alternate payee
(within the meaning of section 206(d)(3)(K) of
the Employee Retirement Income Security Act
of 1974) under a plan, such individual shall be
treated in the same manner as if a participant
under the plan.’’.
(5) CONFORMING AMENDMENTS.—
(A) Section 204(g)(2) of such Act (29
U.S.C. 1054(g)(2)) is amended by adding at
the end the following new sentence: ‘‘Except as
otherwise provided in regulations of the Sec-
retary of Labor and the Secretary of the Treas-
ury, the requirements of subparagraph (B) shall
not be treated as violated in the case of a direct
transfer described in subparagraph 411(f) of
the Internal Revenue Code and Section 204(i)
of ERISA.’’.
(B) section 204(d) of such Act (29 U.S.C.
1054(d)) is amended—
(i) in paragraph (1), by striking ‘‘or’’,
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(ii) in paragraph (2), by striking the
period and inserting ‘‘or’’, and
(iii) by inserting after paragraph (2)
the following new paragraph:
‘‘(3) a direct transfer described in subpara-
graph 411(f) of the Internal Revenue Code and sec-
tion 205(i) of ERISA.’’.
(C) The table of contents for part 2 of
subtitle B of title I of such Act is amended by
inserting after the item relating to section 205
the following new item:
‘‘(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions in plan years be-
ginning after December 31, 1994.’’.
SEC. 4. PROTOTYPE PORTABLE PENSION ACCOUNTS.
(a) IN GENERAL.—The Secretarys of Labor and the
Treasury shall prescribe by regulations one or more proto-
type portable pension accounts which would, upon adop-
tion by any plan sponsor, constitute a portable pension
account meeting the requirements of subsection 204(i) of
the Employee Retirement Income Security Act of 1974
and subsection 411(f) of the Internal Revenue Code. Reg-
ulations for such prototype portable pension accounts shall
be issued within twelve months after the date of enactment
of this Act.
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(b) ACCOUNT SPONSOR.—A plan sponsor of a port-
able pension account means any person who has the power
to acquire, manage, or dispose of any asset of a portable
pension account and is at least one of the following:
(1) An employer or organization of employers
adopting a portable pension account;
(2) An association or organization of employees
sponsoring a portable pension account on behalf of
its members;
(3) A registered investment advisor under the
Investment Advisors Act of 1940;
(4) A bank, as defined in that Act;
(5) An insurance company qualified to perform
services with respect to a portable pension account
but only if participants are fully covered under a
State guaranty fund; or
(6) A savings and loan association regulated by
the Office of Thrift Management and empowered by
law to perform services with respect to a portable
pension account.
SEC. 5. EXEMPTIONS FOR CERTAIN COLLECTIVELY BAR-
GAINED PLANS.
(a) Any multi-employer plan, as defined by title I,
subtitle A, section 3 (37)(A) of the Employee Retirement
Income Security Act of 1974, that is established pursuant
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regulations as are necessary to carry out the amendments
made by this Act.
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