sponsor expects to eliminate any unfunded plan 
liability for the plan year and the extent to 
which the plan sponsor has followed the plan’s 
funding policy for each of the preceding 5 plan 
years. 
‘‘(H) A statement of the amount of any 
pension obligation bonds outstanding. 
‘‘(I) A statement of the current cost of the 
plan for the plan year determined according to 
the plan’s funding method. 
‘‘(J) A statement of the plan’s administra-
tive and investment expenses. 
‘‘(2) SUPPLEMENT
TO
REPORT
WITH
PRE-
SCRIBED VALUATION AND INTEREST RATES.— 
‘‘(A) IN GENERAL.—In the case of an an-
nual report under which— 
‘‘(i) plan assets are not valued at fair 
market value, 
‘‘(ii) any interest rate used to deter-
mine the value of plan liabilities under sub-
paragraph (A) or (I) of paragraph (1) is 
not an interest rate described in subpara-
graph (B), or 
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‘‘(iii) the present value of an accrued 
benefit is not determined as described in 
subparagraph (C), 
the requirements of this subsection shall not be 
treated as met unless the plan sponsor also in-
cludes in such annual report the information 
described in subparagraphs (A) and (I) of para-
graph (1), determined as of the last day of such 
plan year by valuing plan assets at fair market 
value, by using the interest rates described in 
subparagraph (B) to value liabilities, and by de-
termining the present value of accrued benefits 
as described in subparagraph (C). 
‘‘(B) INTEREST RATES BASED ON TREAS-
URY SPOT RATE YIELD CURVE.— 
‘‘(i) IN GENERAL.—The interest rates 
described in this subparagraph are, with 
respect to any day, the rates of interest 
which shall be determined by the Secretary 
for such day on the basis of the Treasury 
spot rate yield curve for such day. 
‘‘(ii) TREASURY
SPOT
RATE
YIELD 
CURVE.—For purposes of this subpara-
graph, the term ‘Treasury spot rate yield 
curve’ means, with respect to any day, the 
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spot rate for such day on interest-bearing 
obligations of the United States. 
‘‘(C) DETERMINING
PRESENT
VALUE
OF 
ACCRUED BENEFITS.—The present value of an 
accrued benefit is determined as described in 
this subparagraph if— 
‘‘(i) it is determined by discounting its 
future cash flows in accordance with sub-
paragraph (B), and 
‘‘(ii) the present value of all benefits 
accrued for each participant is calculated 
as of the last day of such plan year using 
the unit credit funding method. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) STATE OR LOCAL GOVERNMENT APPLICA-
BLE RETIREMENT PLAN.—The term ‘State or local 
government applicable retirement plan’ means any 
plan described in clause (i), (ii), (iii), or (iv) of sec-
tion 219(g)(5)(A) (other than a defined contribution 
plan (within the meaning of section 414(i))), which 
is maintained by a State, a political subdivision of 
a State, or any agency or instrumentality of a State 
or political subdivision of a State. 
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‘‘(2) FUNDING PERCENTAGE.—The term ‘fund-
ing percentage’ for a plan year means the ratio (ex-
pressed as a percentage) which— 
‘‘(A) the value of plan assets as of the end 
of the plan year, bears to 
‘‘(B) the plan liability of the plan for the 
plan year. 
‘‘(3) PLAN LIABILITY.—The term ‘plan liability’ 
of a plan for a plan year means the present value 
of all benefits accrued or earned under the plan as 
of the last day of the plan year. 
‘‘(4) CURRENT COST.—The term ‘current cost’ 
of a plan for a plan year means the present value 
as of the end of the plan year of all benefits accrued 
or earned under the plan during the plan year. 
‘‘(5) PLAN SPONSOR.—The term ‘plan sponsor’ 
means, in connection with a State or local govern-
ment applicable retirement plan, the State, political 
subdivision of a State, or agency or instrumentality 
of a State or a political subdivision of a State which 
establishes or maintains the plan. For purposes of 
report filing requirements under this section, such 
term shall include the administrator of the plan on 
behalf of the plan sponsor in the case of a plan 
which is not administered by the plan sponsor. 
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‘‘(6) PARTICIPANT.— 
‘‘(A) IN GENERAL.—The term ‘participant’ 
means, in connection with a State or local gov-
ernment applicable retirement plan, an indi-
vidual— 
‘‘(i) who is an employee or former em-
ployee of a State, political subdivision of a 
State, or agency or instrumentality of a 
State or a political subdivision of a State 
which is the plan sponsor of such plan, and 
‘‘(ii) who is or may become eligible to 
receive a benefit of any type from such 
plan or whose beneficiaries may be eligible 
to receive any such benefit. 
‘‘(B) BENEFICIARY.—The term ‘bene-
ficiary’ means a person designated by a partici-
pant, or by the terms of the plan, who is or 
may become entitled to a benefit thereunder. 
‘‘(7) PLAN YEAR.—The term ‘plan year’ means, 
in connection with a plan, the calendar or fiscal year 
on which the records of the plan are kept. 
‘‘(8) STATE.—The term ‘State’ includes any 
State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the United 
States Virgin Islands, American Samoa, Guam, and 
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the Commonwealth of the Northern Mariana Is-
lands. 
‘‘(9) FAIR
MARKET
VALUE.—The term ‘fair 
market value’ has the meaning of such term under 
section 430(g)(3)(A) (without regard to section 
430(g)(3)(B)). 
‘‘(e) MODEL REPORTING STATEMENT.—The Sec-
retary shall develop model reporting that plan sponsors of 
State or local government employee pension plans may 
elect to use for purposes of complying with requirements 
of such subsections (c). 
‘‘(f) TRANSPARENCY OF INFORMATION FILED.—Re-
ports filed under this section shall be public records open 
to the inspection of the public, and the Secretary shall cre-
ate and maintain a searchable public website on which the 
Secretary shall post such reports not later than 60 days 
after receipt.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter B of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 149A. Reporting with respect to certain State or local government retire-
ment plans.’’. 
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