SEC. 3. APPLICATION OF MINIMUM COVERAGE REQUIRE-
MENTS WITH RESPECT TO SEPARATE LINES
OF BUSINESS.
(a) IN GENERAL.—Subsection (b) of section 410 of
the Internal Revenue Code of 1986 (relating to minimum
coverage requirements) is amended—
(1) in paragraph (1), by striking ‘‘A trust’’ and
inserting ‘‘In any case in which the employer with
respect to a plan is treated, under section 414(r), as
operating separate lines of business for a plan year,
a trust’’, and by inserting ‘‘for such plan year’’ after
‘‘requirements’’; and
(2) by redesignating paragraphs (3) through
(6) as paragraphs (4) through (7), respectively and
by inserting after paragraph (2) the following new
paragraph:
‘‘(3) SPECIAL RULE WHERE EMPLOYER OPER-
ATES SINGLE LINE OF BUSINESS.—In any case in
which the employer with respect to a plan is not
treated, under section 414(r), as operating separate
lines of business for a plan year, a trust shall not
constitute a qualified trust under section 401(a) un-
less such trust is designated by the employer as part
of a plan which benefits all employees of the
employer.’’.
(b) LIMITATION
ON LINE
OF BUSINESS EXCEP-
TION.—Paragraph (6) of section 410(b) of such Code (as
redesignated by subsection (a)(2) of this section) is
amended by inserting ‘‘other than paragraph (1)(A)’’ after
‘‘this subsection’’.
SEC. 4. ELIMINATION OF SPECIAL VESTING RULE FOR MUL-
TIEMPLOYER PLANS.
(a) INTERNAL REVENUE CODE AMENDMENT.—Para-
graph (2) of section 411(a) of the Internal Revenue Code
of 1986 (relating to minimum vesting standards) is
amended—
(1) by striking ‘‘subparagraph (A), (B), or (C)’’
and inserting ‘‘subparagraph (A) or (B)’’; and
(2) by striking subparagraph (C).
(b) ERISA AMENDMENT.—Paragraph (2) of section
203(a)(2) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1053(a)(2)) is amended—
(1) by striking ‘‘subparagraph (A), (B), or (C)’’
and inserting ‘‘subparagraph (A) or (B)’’; and
(2) by striking subparagraph (C).
SEC. 5. DIVISION OF PENSION BENEFITS UPON DIVORCE.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
(1) IN
GENERAL.—Subsection (a) of section
401 of the Internal Revenue Code of 1986 (relating
to requirements for qualification) is amended—
(A) by inserting after paragraph (31) the
following new paragraph:
‘‘(32) DIVISION OF PENSION BENEFITS UPON
DIVORCE.—
‘‘(A) IN GENERAL.—In the case of a di-
vorce of a participant in a pension plan from a
spouse who is, immediately before the divorce,
a beneficiary under the plan, a trust forming a
part of such plan shall not constitute a quali-
fied trust under this section unless the plan
provides that at least 50 percent of the marital
share of the accrued benefit of the participant
under the plan ceases to be an accrued benefit
of such participant and becomes an accrued
benefit of such divorced spouse, determined and
payable upon the earlier of the retirement of
the participant, the participant’s death, or the
termination of the plan, except to the extent
that a qualified domestic relations order in con-
nection with such divorce provides otherwise.
‘‘(B) 
LIMITATION.—Subparagraph 
(A)
shall not be construed—
‘‘(i) to require a plan to provide any
type or form of benefit, or any option, not
otherwise provided under the plan,
‘‘(ii) to require the plan to provide in-
creased benefits (determined on the basis
of actuarial value),
‘‘(iii) to require the payment of bene-
fits to the divorced spouse which are re-
quired to be paid to another individual in
accordance with this paragraph or pursu-
ant to a domestic relations order previously
determined to be a qualified domestic rela-
tions order, or
‘‘(iv) to require payment of benefits to
the divorced spouse in the form of a quali-
fied joint and survivor annuity to the di-
vorced spouse and his or her subsequent
spouse.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) DOMESTIC
RELATIONS
ORDER;
QUALIFIED
DOMESTIC
RELATIONS
ORDER.—The terms ‘domestic relations
order’ and ‘qualified domestic relations
order’ shall have the meanings provided in
section 414(p).
‘‘(ii) MARITAL
SHARE.—The term
‘marital share’ means, in connection with
an accrued benefit under a pension plan,
the product derived by multiplying—
‘‘(I) the actuarial present value
of the accrued benefit, by
‘‘(II) a fraction, the numerator of
which is the period of time, during the
marriage between the spouse and the
participant in the plan, which con-
stitutes creditable service by the par-
ticipant under the plan, and the de-
nominator of which is the total period
of time which constitutes creditable
service by the participant under the
plan.
‘‘(iii) QUALIFIED JOINT AND SURVI-
VOR ANNUITY.—The term ‘qualified joint
and survivor annuity’ has the meaning pro-
vided in section 417(b).
‘‘(D) REGULATIONS.—In prescribing regu-
lations under this paragraph, the Secretary
shall consult with the Secretary of Labor.’’; and
(B) in the last sentence, by striking ‘‘and
(20)’’ and inserting ‘‘(20), and (32)’’.
(2) CONFORMING AMENDMENTS.—
(A) 
Subparagraph 
(B) 
of 
section
401(a)(13) of such Code (relating to special
rules for domestic relations orders) is amended
by inserting ‘‘or if such creation, assignment, or
recognition pursuant to such order is necessary
for compliance with the requirements of para-
graph (32)’’ before the period.
(B) Subsection (p) of section 414 of such
Code (defining qualified domestic relations or-
ders) is amended—
(i) in paragraph (3)(C), by inserting
‘‘or to a divorced spouse of the participant
in connection with a previously occurring
divorce 
as 
required 
under 
section
401(a)(32)’’ before the period; and
(ii) in paragraph (7)(C), by striking
‘‘if there had been no order’’ and inserting
‘‘in accordance with section 401(a)(32) as
if there had been no qualified domestic re-
lations order’’.
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—
(1) IN
GENERAL.—Section 206 of Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1056) is amended by adding at the end the following
new subsection:
‘‘(e)(1) In the case of a divorce of a participant in
a pension plan from a spouse who is, immediately before
the divorce, a beneficiary under the plan, the plan shall
provide that at least 50 percent of the marital share of
the accrued benefit of the participant under the plan
ceases to be an accrued benefit of such participant and
becomes an accrued benefit of such divorced spouse, deter-
mined and payable upon the earlier of the retirement of
the participant, the participant’s death, or the termination
of the plan, except to the extent that a qualified domestic
relations order in connection with such divorce provides
otherwise.
‘‘(2) Paragraph (1) shall not be construed—
‘‘(A) to require a plan to provide any type or
form of benefit, or any option, not otherwise pro-
vided under the plan,
‘‘(B) to require the plan to provide increased
benefits (determined on the basis of actuarial value),
‘‘(C) to require the payment of benefits to the
divorced spouse which are required to be paid to an-
other individual in accordance with this subsection
or pursuant to a domestic relation order previously
determined to be a qualified domestic relations
order, or
‘‘(D) to require payment of benefits to the di-
vorced spouse in the form of a joint and survivor an-
nuity to the divorced spouse and his or her subse-
quent spouse.
‘‘(3) For purposes of this subsection—
‘‘(A) The terms ‘domestic relations order’ and
‘qualified domestic relations order’ shall have the
meanings provided in subsection (d)(3)(B).
‘‘(B) The term ‘marital share’ means, in con-
nection with an accrued benefit under a pension
plan, the product derived by multiplying—
‘‘(i) the actuarial present value of the ac-
crued benefit, by
‘‘(ii) a fraction—
‘‘(I) the numerator of which is the pe-
riod of time, during the marriage between
the spouse and the participant in the plan,
which constitutes creditable service by the
participant under the plan, and
‘‘(II) the denominator of which is the
total period of time which constitutes cred-
itable service by the participant under the
plan.
‘‘(C) The term ‘qualified joint and survivor an-
nuity’ shall have the meaning provided in section
205(d).
‘‘(4) In prescribing regulations under this subsection,
the Secretary shall consult with the Secretary of the
Treasury.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
206(d) of such Act (29 U.S.C. 1056(d)) is amend-
ed—
(A) in the first sentence of paragraph
(3)(A), by inserting ‘‘or if such creation, assign-
ment, or recognition pursuant to such order is
necessary for compliance with the requirements
of subsection (e)’’ before the period;
(B) in paragraph (3)(D)(iii), by inserting
‘‘or to a divorced spouse of the participant in
connection with a previously occurring divorce
as required under subsection (e)’’ before the pe-
riod; and
(C) in paragraph (3)(H)(iii), by striking
‘‘if there had been no order’’ and inserting ‘‘in
accordance with subsection (e) as if there had
been no qualified domestic relations order’’.
SEC. 6. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this Act, other than section
2, shall apply with respect to plan years beginning on or
after January 1, 1996, and the amendments made by sec-
tion 5 shall apply only with respect to divorces becoming
final in such plan years.
(b) SPECIAL RULE FOR COLLECTIVELY BARGAINED
PLANS.—In the case of a plan maintained pursuant to 1
or more collective bargaining agreements between em-
ployee representatives and 1 or more employers ratified
on or before the date of the enactment of this Act, sub-
section (a) shall be applied to benefits pursuant to, and
individuals covered by, any such agreement by substituting
for ‘‘January 1, 1996’’ the date of the commencement of
the first plan year beginning on or after the earlier of—
(1) the later of—
(A) January 1, 1996, or
(B) the date on which the last of such col-
lective bargaining agreements terminates (de-
termined without regard to any extension there-
of after the date of the enactment of this Act),
or
(2) January 1, 1999.
(c) PLAN AMENDMENTS.—If any amendment made
by this Act requires an amendment to any plan, such plan