H. R. 4—136
‘‘(B) to the extent provided in regulations of the Sec-
retary, such person is entitled to such a benefit under 
the plan. 
‘‘(7) OBLIGATION TO CONTRIBUTE.—The term ‘obligation to 
contribute’ has the meaning given such term under section 
4212(a) of the Employee Retirement Income Security Act of 
1974. 
‘‘(8) ACTUARIAL
METHOD.—Notwithstanding any other 
provision of this section, the actuary’s determinations with 
respect to a plan’s normal cost, actuarial accrued liability, and 
improvements in a plan’s funded percentage under this section 
shall be based upon the unit credit funding method (whether 
or not that method is used for the plan’s actuarial valuation). 
‘‘(9) PLAN SPONSOR.—In the case of a plan described under 
section 404(c), or a continuation of such a plan, the term 
‘plan sponsor’ means the bargaining parties described under 
paragraph (1). 
‘‘(10) BENEFIT COMMENCEMENT DATE.—The term ‘benefit 
commencement date’ means the annuity starting date (or in 
the case of a retroactive annuity starting date, the date on 
which benefit payments begin).’’
(b) EXCISE TAXES ON FAILURES RELATING TO MULTIEMPLOYER 
PLANS IN ENDANGERED OR CRITICAL STATUS.—
(1) IN GENERAL.—Section 4971 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (g) as 
subsection (h) and by inserting after subsection (f) the following: 
‘‘(g) MULTIEMPLOYER
PLANS
IN
ENDANGERED
OR
CRITICAL 
STATUS.—
‘‘(1) IN GENERAL.—Except as provided in this subsection—
‘‘(A) no tax shall be imposed under this section for 
a taxable year with respect to a multiemployer plan if, 
for the plan years ending with or within the taxable year, 
the plan is in critical status pursuant to section 432, and 
‘‘(B) any tax imposed under this subsection for a tax-
able year with respect to a multiemployer plan if, for the 
plan years ending with or within the taxable year, the 
plan is in endangered status pursuant to section 432 shall 
be in addition to any other tax imposed by this section. 
‘‘(2) FAILURE TO COMPLY WITH FUNDING IMPROVEMENT OR 
REHABILITATION PLAN.—
‘‘(A) IN GENERAL.—If any funding improvement plan 
or rehabilitation plan in effect under section 432 with 
respect to a multiemployer plan requires an employer to 
make a contribution to the plan, there is hereby imposed 
a tax on each failure of the employer to make the required 
contribution within the time required under such plan. 
‘‘(B) AMOUNT OF TAX.—The amount of the tax imposed 
by subparagraph (A) shall be equal to the amount of the 
required contribution the employer failed to make in a 
timely manner. 
‘‘(C) LIABILITY FOR TAX.—The tax imposed by subpara-
graph (A) shall be paid by the employer responsible for 
contributing to or under the rehabilitation plan which fails 
to make the contribution. 
‘‘(3) FAILURE TO MEET REQUIREMENTS FOR PLANS IN ENDAN-
GERED OR CRITICAL STATUS.—If—
H. R. 4—137
‘‘(A) a plan which is in seriously endangered status 
fails to meet the applicable benchmarks by the end of 
the funding improvement period, or 
‘‘(B) a plan which is in critical status either—
‘‘(i) fails to meet the requirements of section 432(e) 
by the end of the rehabilitation period, or 
‘‘(ii) has received a certification under section 
432(b)(3)(A)(ii) for 3 consecutive plan years that the 
plan is not making the scheduled progress in meeting 
its requirements under the rehabilitation plan, 
the plan shall be treated as having an accumulated funding 
deficiency for purposes of this section for the last plan 
year in such funding improvement, rehabilitation, or 3-
consecutive year period (and each succeeding plan year 
until such benchmarks or requirements are met) in an 
amount equal to the greater of the amount of the contribu-
tions necessary to meet such benchmarks or requirements 
or the amount of such accumulated funding deficiency with-
out regard to this paragraph. 
‘‘(4) FAILURE TO ADOPT REHABILITATION PLAN.—
‘‘(A) IN GENERAL.—In the case of a multiemployer plan 
which is in critical status, there is hereby imposed a tax 
on the failure of such plan to adopt a rehabilitation plan 
within the time prescribed under section 432. 
‘‘(B) AMOUNT OF TAX.—The amount of the tax imposed 
under subparagraph (A) with respect to any plan sponsor 
for any taxable year shall be the greater of—
‘‘(i) the amount of tax imposed under subsection 
(a) for the taxable year (determined without regard 
to this subsection), or 
‘‘(ii) the amount equal to $1,100 multiplied by the 
number of days during the taxable year which are 
included in the period beginning on the first day of 
the 240-day period described in section 432(e)(1)(A) 
and ending on the day on which the rehabilitation 
plan is adopted. 
‘‘(C) LIABILITY FOR TAX.—
‘‘(i) IN GENERAL.—The tax imposed by subpara-
graph (A) shall be paid by each plan sponsor. 
‘‘(ii) PLAN SPONSOR.—For purposes of clause (i), 
the term ‘plan sponsor’ in the case of a multiemployer 
plan means the association, committee, joint board of 
trustees, or other similar group of representatives of 
the parties who establish or maintain the plan. 
‘‘(5) WAIVER.—In the case of a failure described in para-
graph (2) or (3) which is due to reasonable cause and not 
to willful neglect, the Secretary may waive part or all of the 
tax imposed by this subsection. For purposes of this paragraph, 
reasonable cause includes unanticipated and material market 
fluctuations, the loss of a significant contributing employer, 
or other factors to the extent that the payment of tax under 
this subsection with respect to the failure would be excessive 
or otherwise inequitable relative to the failure involved. 
‘‘(6) TERMS USED IN SECTION 432.—For purposes of this 
subsection, any term used in this subsection which is also 
used in section 432 shall have the meaning given such term 
by section 432.’’.
H. R. 4—138
(2) CONTROLLED GROUPS.—Section 4971(c)(2) of such Code 
is amended—
(A) by striking ‘‘In the case of a plan other than a 
multiemployer plan, if the’’ and inserting ‘‘If an’’, and 
(B) by striking ‘‘or (f)’’ and inserting ‘‘(f), or (g)’’. 
(c) NO ADDITIONAL CONTRIBUTION REQUIRED.—Section 412(b) 
of the Internal Revenue Code of 1986, as amended by this Act, 
is amended by adding at the end the following new paragraph: 
‘‘(3) MULTIEMPLOYER
PLANS
IN
CRITICAL
STATUS.—Para-
graph (1) shall not apply in the case of a multiemployer plan 
for any plan year in which the plan is in critical status pursuant 
to section 432. This paragraph shall only apply if the plan 
adopts a rehabilitation plan in accordance with section 432(e) 
and complies with such rehabilitation plan (and any modifica-
tions of the plan).’’. 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
A of part III of subchapter D of chapter 1 of such Code is amended 
by adding at the end the following new item:
‘‘Sec. 432. Additional funding rules for multiemployer plans in endangered status 
or critical status.’’.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by this section 
shall apply with respect to plan years beginning after 2007. 
(2) SPECIAL RULE FOR CERTAIN NOTICES.—In any case in 
which a plan’s actuary certifies that it is reasonably expected 
that a multiemployer plan will be in critical status under 
section 305(b)(3) of the Employee Retirement Income Security 
Act of 1974, as added by this section, with respect to the 
first plan year beginning after 2007, the notice required under 
subparagraph (D) of such section may be provided at any time 
after the date of enactment, so long as it is provided on or 
before the last date for providing the notice under such subpara-
graph. 
(3) SPECIAL RULE FOR CERTAIN RESTORED BENEFITS.—In 
the case of a multiemployer plan—
(A) with respect to which benefits were reduced pursu-
ant to a plan amendment adopted on or after January 
1, 2002, and before June 30, 2005, and 
(B) which, pursuant to the plan document, the trust 
agreement, or a formal written communication from the 
plan sponsor to participants provided before June 30, 2005, 
provided for the restoration of such benefits, 
the amendments made by this section shall not apply to such 
benefit restorations to the extent that any restriction on the 
providing or accrual of such benefits would otherwise apply 
by reason of such amendments. 
SEC. 213. MEASURES TO FORESTALL INSOLVENCY OF MULTIEM-
PLOYER PLANS. 
(a) ADVANCE DETERMINATION OF IMPENDING INSOLVENCY OVER 
5 YEARS.—Section 418E(d)(1) of the Internal Revenue Code of 1986 
is amended—
(1) by striking ‘‘3 plan years’’ the second place it appears 
and inserting ‘‘5 plan years’’; and 
(2) by adding at the end the following new sentence: ‘‘If 
the plan sponsor makes such a determination that the plan 
will be insolvent in any of the next 5 plan years, the plan
H. R. 4—139
sponsor shall make the comparison under this paragraph at 
least annually until the plan sponsor makes a determination 
that the plan will not be insolvent in any of the next 5 plan 
years.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to the determinations made in plan years 
beginning after 2007. 
SEC. 214. EXEMPTION FROM EXCISE TAXES FOR CERTAIN MULTIEM-
PLOYER PENSION PLANS. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
no tax shall be imposed under subsection (a) or (b) of section 
4971 of the Internal Revenue Code of 1986 with respect to any 
accumulated funding deficiency of a plan described in subsection 
(b) of this section for any taxable year beginning before the earlier 
of—
(1) the taxable year in which the plan sponsor adopts 
a rehabilitation plan under section 305(e) of the Employee 
Retirement Income Security Act of 1974 and section 432(e) 
of such Code (as added by this Act); or 
(2) the taxable year that contains January 1, 2009. 
(b) PLAN DESCRIBED.—A plan described under this subsection 
is a multiemployer pension plan—
(1) with less than 100 participants; 
(2) with respect to which the contributing employers partici-
pated in a Federal fishery capacity reduction program; 
(3) with respect to which employers under the plan partici-
pated in the Northeast Fisheries Assistance Program; and 
(4) with respect to which the annual normal cost is less 
than $100,000 and the plan is experiencing a funding deficiency 
on the date of enactment of this Act. 
Subtitle C—Sunset of Additional Funding 
Rules 
SEC. 221. SUNSET OF ADDITIONAL FUNDING RULES. 
(a) REPORT.—Not later than December 31, 2011, the Secretary 
of Labor, the Secretary of the Treasury, and the Executive Director 
of the Pension Benefit Guaranty Corporation shall conduct a study 
of the effect of the amendments made by this subtitle on the 
operation and funding status of multiemployer plans and shall 
report the results of such study, including any recommendations 
for legislation, to the Congress. 
(b) MATTERS INCLUDED IN STUDY.—The study required under 
subsection (a) shall include—
(1) the effect of funding difficulties, funding rules in effect 
before the date of the enactment of this Act, and the amend-
ments made by this subtitle on small businesses participating 
in multiemployer plans, 
(2) the effect on the financial status of small employers 
of—
(A) funding targets set in funding improvement and 
rehabilitation plans and associated contribution increases, 
(B) funding deficiencies, 
(C) excise taxes, 
(D) withdrawal liability,
H. R. 4—140
(E) the possibility of alternative schedules and proce-
dures for financially troubled employers, and 
(F) other aspects of the multiemployer system, and 
(3) the role of the multiemployer pension plan system in 
helping small employers to offer pension benefits. 
(c) SUNSET.—
(1) IN GENERAL.—Except as provided in this subsection, 
notwithstanding any other provision of this Act, the provisions 
of, and the amendments made by, sections 201(b), 202, and 
212 shall not apply to plan years beginning after December 
31, 2014. 
(2) FUNDING IMPROVEMENT AND REHABILITATION PLANS.—
If a plan is operating under a funding improvement or 
rehabilitation plan under section 305 of such Act or 432 of 
such Code for its last year beginning before January 1, 2015, 
such plan shall continue to operate under such funding improve-
ment or rehabilitation plan during any period after December 
31, 2014, such funding improvement or rehabilitation plan is 
in effect and all provisions of such Act or Code relating to 
the operation of such funding improvement or rehabilitation 
plan shall continue in effect during such period. 
TITLE III—INTEREST RATE 
ASSUMPTIONS 
SEC. 301. EXTENSION OF REPLACEMENT OF 30-YEAR TREASURY RATES. 
(a) AMENDMENTS OF ERISA.—
(1) DETERMINATION OF RANGE.—Subclause (II) of section 
302(b)(5)(B)(ii) of the Employee Retirement Income Security 
Act of 1974 is amended—
(A) by striking ‘‘2006’’ and inserting ‘‘2008’’, and 
(B) by striking ‘‘AND 2005’’ in the heading and inserting 
‘‘, 2005, 2006, AND 2007’’. 
(2) DETERMINATION OF CURRENT LIABILITY.—Subclause (IV) 
of section 302(d)(7)(C)(i) of such Act is amended—
(A) by striking ‘‘or 2005’’ and inserting ‘‘, 2005, 2006, 
or 2007’’, and 
(B) by striking ‘‘AND 2005’’ in the heading and inserting 
‘‘, 2005, 2006, AND 2007’’. 
(3) PBGC 
PREMIUM
RATE.—Subclause (V) of section 
4006(a)(3)(E)(iii) of such Act is amended by striking ‘‘2006’’ 
and inserting ‘‘2008’’. 
(b) AMENDMENTS OF INTERNAL REVENUE CODE.—
(1) DETERMINATION OF RANGE.—Subclause (II) of section 
412(b)(5)(B)(ii) of the Internal Revenue Code of 1986 is 
amended—
(A) by striking ‘‘2006’’ and inserting ‘‘2008’’, and 
(B) by striking ‘‘AND 2005’’ in the heading and inserting 
‘‘, 2005, 2006, AND 2007’’. 
(2) DETERMINATION OF CURRENT LIABILITY.—Subclause (IV) 
of section 412(l)(7)(C)(i) of such Code is amended—
(A) by striking ‘‘or 2005’’ and inserting ‘‘, 2005, 2006, 
or 2007’’, and 
(B) by striking ‘‘AND 2005’’ in the heading and inserting 
‘‘, 2005, 2006, AND 2007’’.
H. R. 4—141
(c) PLAN AMENDMENTS.—Clause (ii) of section 101(c)(2)(A) of 
the Pension Funding Equity Act of 2004 is amended by striking 
‘‘2006’’ and inserting ‘‘2008’’. 
SEC. 302. INTEREST RATE ASSUMPTION FOR DETERMINATION OF 
LUMP SUM DISTRIBUTIONS. 
(a) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.—Paragraph (3) of section 205(g) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1055(g)(3)) is 
amended to read as follows: 
‘‘(3)(A) For purposes of paragraphs (1) and (2), the present 
value shall not be less than the present value calculated by using 
the applicable mortality table and the applicable interest rate. 
‘‘(B) For purposes of subparagraph (A)—
‘‘(i) The term ‘applicable mortality table’ means a mortality 
table, modified as appropriate by the Secretary of the Treasury, 
based on the mortality table specified for the plan year under 
subparagraph (A) of section 303(h)(3) (without regard to 
subparagraph (C) or (D) of such section). 
‘‘(ii) The term ‘applicable interest rate’ means the adjusted 
first, second, and third segment rates applied under rules 
similar to the rules of section 303(h)(2)(C) for the month before 
the date of the distribution or such other time as the Secretary 
of the Treasury may by regulations prescribe. 
‘‘(iii) For purposes of clause (ii), the adjusted first, second, 
and third segment rates are the first, second, and third segment 
rates which would be determined under section 303(h)(2)(C) 
if—
‘‘(I) section 303(h)(2)(D) were applied by substituting 
the average yields for the month described in clause (ii) 
for the average yields for the 24-month period described 
in such section, 
‘‘(II) section 303(h)(2)(G)(i)(II) were applied by sub-
stituting 
‘section 
205(g)(3)(B)(iii)(II)’ 
for 
‘section 
302(b)(5)(B)(ii)(II)’, and 
‘‘(III) 
the 
applicable 
percentage 
under 
section 
303(h)(2)(G) were determined in accordance with the fol-
lowing table:
‘‘In
the
case
of
plan
years
beginning in:
The applicable
percentage is:
2008 ........................................................................
20 percent
2009 ........................................................................
40 percent
2010 ........................................................................
60 percent
2011 ........................................................................
80 percent.’’. 
(b) AMENDMENT TO INTERNAL REVENUE CODE OF 1986.—Para-
graph (3) of section 417(e) of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘(3) DETERMINATION OF PRESENT VALUE.—
‘‘(A) IN GENERAL.—For purposes of paragraphs (1) and 
(2), the present value shall not be less than the present 
value calculated by using the applicable mortality table 
and the applicable interest rate. 
‘‘(B) APPLICABLE MORTALITY TABLE.—For purposes of 
subparagraph (A), the term ‘applicable mortality table’ 
means a mortality table, modified as appropriate by the
H. R. 4—142
Secretary, based on the mortality table specified for the 
plan year under subparagraph (A) of section 430(h)(3) 
(without regard to subparagraph (C) or (D) of such section). 
‘‘(C) APPLICABLE
INTEREST
RATE.—For purposes of 
subparagraph (A), the term ‘applicable interest rate’ means 
the adjusted first, second, and third segment rates applied 
under rules similar to the rules of section 430(h)(2)(C) 
for the month before the date of the distribution or such 
other time as the Secretary may by regulations prescribe. 
‘‘(D) APPLICABLE
SEGMENT
RATES.—For purposes of 
subparagraph (C), the adjusted first, second, and third 
segment rates are the first, second, and third segment 
rates which would be determined under section 430(h)(2)(C) 
if—
‘‘(i) section 430(h)(2)(D) were applied by sub-
stituting the average yields for the month described 
in clause (ii) for the average yields for the 24-month 
period described in such section, 
‘‘(ii) section 430(h)(2)(G)(i)(II) were applied by sub-
stituting 
‘section 
417(e)(3)(A)(ii)(II)’ 
for 
‘section 
412(b)(5)(B)(ii)(II)’, and 
‘‘(iii) the applicable percentage under section 
430(h)(2)(G) were determined in accordance with the 
following table:
‘‘In
the
case
of
plan
years
beginning in:
The applicable
percentage is:
2008 ........................................................................
20 percent
2009 ........................................................................
40 percent
2010 ........................................................................
60 percent
2011 ........................................................................
80 percent.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to plan years beginning after December 
31, 2007. 
SEC. 303. INTEREST RATE ASSUMPTION FOR APPLYING BENEFIT 
LIMITATIONS TO LUMP SUM DISTRIBUTIONS. 
(a) IN GENERAL.—Clause (ii) of section 415(b)(2)(E) of the 
Internal Revenue Code of 1986 is amended to read as follows: 
‘‘(ii) For purposes of adjusting any benefit under 
subparagraph (B) for any form of benefit subject to 
section 417(e)(3), the interest rate assumption shall 
not be less than the greatest of—
‘‘(I) 5.5 percent, 
‘‘(II) the rate that provides a benefit of not 
more than 105 percent of the benefit that would 
be provided if the applicable interest rate (as 
defined in section 417(e)(3)) were the interest rate 
assumption, or 
‘‘(III) the rate specified under the plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to distributions made in years beginning after December 
31, 2005.
H. R. 4—143
TITLE IV—PBGC GUARANTEE AND 
RELATED PROVISIONS 
SEC. 401. PBGC PREMIUMS. 
(a) VARIABLE-RATE PREMIUMS.—
(1) CONFORMING AMENDMENTS RELATED TO FUNDING RULES 
FOR
SINGLE-EMPLOYER
PLANS.—Section 4006(a)(3)(E) of the 
Employee Retirement Income and Security Act of 1974 (29 
U.S.C. 1306(a)(3)(E)) is amended by striking clauses (iii) and 
(iv) and inserting the following: 
‘‘(iii) For purposes of clause (ii), the term ‘unfunded vested 
benefits’ means, for a plan year, the excess (if any) of—
‘‘(I) the funding target of the plan as determined under 
section 303(d) for the plan year by only taking into account 
vested benefits and by using the interest rate described in 
clause (iv), over 
‘‘(II) the fair market value of plan assets for the plan 
year which are held by the plan on the valuation date. 
‘‘(iv) The interest rate used in valuing benefits for purposes 
of subclause (I) of clause (iii) shall be equal to the first, second, 
or third segment rate for the month preceding the month in which 
the plan year begins, which would be determined under section 
303(h)(2)(C) if section 303(h)(2)(D) were applied by using the 
monthly yields for the month preceding the month in which the 
plan year begins on investment grade corporate bonds with varying 
maturities and in the top 3 quality levels rather than the average 
of such yields for a 24-month period.’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall apply with respect to plan years beginning after 2007. 
(b) TERMINATION PREMIUMS.—
(1) REPEAL OF SUNSET PROVISION.—Subparagraph (E) of 
section 4006(a)(7) of such Act is repealed. 
(2) TECHNICAL CORRECTION.—
(A) IN GENERAL.—Section 4006(a)(7)(C)(ii) of such Act 
is amended by striking ‘‘subparagraph (B)(i)(I)’’ and 
inserting ‘‘subparagraph (B)’’. 
(B) EFFECTIVE DATE.—The amendment made by this 
paragraph shall take effect as if included in the provision 
of the Deficit Reduction Act of 2005 to which it relates. 
SEC. 402. SPECIAL FUNDING RULES FOR CERTAIN PLANS MAINTAINED 
BY COMMERCIAL AIRLINES. 
(a) IN GENERAL.—The plan sponsor of an eligible plan may 
elect to either—
(1) have the rules of subsection (b) apply, or 
(2) have section 303 of the Employee Retirement Income 
Security Act of 1974 and section 430 of the Internal Revenue 
Code of 1986 applied to its first taxable year beginning in 
2008 by amortizing the shortfall amortization base for such 
taxable year over a period of 10 plan years (rather than 7 
plan years) beginning with such plan year. 
(b) ALTERNATIVE FUNDING SCHEDULE.—
(1) IN GENERAL.—If an election is made under subsection 
(a)(1) to have this subsection apply to an eligible plan and 
the requirements of paragraphs (2) and (3) are met with respect 
to the plan—
H. R. 4—144
(A) in the case of any applicable plan year beginning 
before January 1, 2008, the plan shall not have an accumu-
lated funding deficiency for purposes of section 302 of the 
Employee Retirement Income Security Act of 1974 and 
sections 412 and 4971 of the Internal Revenue Code of 
1986 if contributions to the plan for the plan year are 
not less than the minimum required contribution deter-
mined under subsection (e) for the plan for the plan year, 
and 
(B) in the case of any applicable plan year beginning 
on or after January 1, 2008, the minimum required con-
tribution determined under sections 303 of such Act and 
430 of such Code shall, for purposes of sections 302 and 
303 of such Act and sections 412, 430, and 4971 of such 
Code, be equal to the minimum required contribution deter-
mined under subsection (e) for the plan for the plan year. 
(2) ACCRUAL RESTRICTIONS.—
(A) IN GENERAL.—The requirements of this paragraph 
are met if, effective as of the first day of the first applicable 
plan year and at all times thereafter while an election 
under this section is in effect, the plan provides that—
(i) the accrued benefit, any death or disability ben-
efit, and any social security supplement described in 
the last sentence of section 411(a)(9) of such Code 
and section 204(b)(1)(G) of such Act, of each participant 
are frozen at the amount of such benefit or supplement 
immediately before such first day, and 
(ii) all other benefits under the plan are elimi-
nated, 
but only to the extent the freezing or elimination of such 
benefits would have been permitted under section 411(d)(6) 
of such Code and section 204(g) of such Act if they had 
been implemented by a plan amendment adopted imme-
diately before such first day. 
(B) INCREASES IN SECTION 415 LIMITS.—If a plan pro-
vides that an accrued benefit of a participant which has 
been subject to any limitation under section 415 of such 
Code will be increased if such limitation is increased, the 
plan shall not be treated as meeting the requirements 
of this section unless, effective as of the first day of the 
first applicable plan year (or, if later, the date of the 
enactment of this Act) and at all times thereafter while 
an election under this section is in effect, the plan provides 
that any such increase shall not take effect. A plan shall 
not fail to meet the requirements of section 411(d)(6) of 
such Code and section 204(g) of such Act solely because 
the plan is amended to meet the requirements of this 
subparagraph. 
(3) RESTRICTION ON APPLICABLE BENEFIT INCREASES.—
(A) IN GENERAL.—The requirements of this paragraph 
are met if no applicable benefit increase takes effect at 
any time during the period beginning on July 26, 2005, 
and ending on the day before the first day of the first 
applicable plan year. 
(B) APPLICABLE BENEFIT INCREASE.—For purposes of 
this paragraph, the term ‘‘applicable benefit increase’’ 
means, with respect to any plan year, any increase in
H. R. 4—145
liabilities of the plan by plan amendment (or otherwise 
provided in regulations provided by the Secretary) which, 
but for this paragraph, would occur during the plan year 
by reason of—
(i) any increase in benefits, 
(ii) any change in the accrual of benefits, or 
(iii) any change in the rate at which benefits 
become nonforfeitable under the plan. 
(4) EXCEPTION
FOR
IMPUTED
DISABILITY
SERVICE.—Para-
graphs (2) and (3) shall not apply to any accrual or increase 
with respect to imputed service provided to a participant during 
any period of the participant’s disability occurring on or after 
the effective date of the plan amendment providing the restric-
tions under paragraph (2) (or on or after July 26, 2005, in 
the case of the restrictions under paragraph (3)) if the partici-
pant—
(A) was receiving disability benefits as of such date, 
or 
(B) was receiving sick pay and subsequently deter-
mined to be eligible for disability benefits as of such date. 
(c) DEFINITIONS.—For purposes of this section—
(1) ELIGIBLE
PLAN.—The term ‘‘eligible plan’’ means a 
defined benefit plan (other than a multiemployer plan) to which 
sections 302 of such Act and 412 of such Code applies which 
is sponsored by an employer—
(A) which is a commercial airline passenger airline, 
or 
(B) the principal business of which is providing catering 
services to a commercial passenger airline. 
(2) APPLICABLE
PLAN
YEAR.—The term ‘‘applicable plan 
year’’ means each plan year to which the election under sub-
section (a)(1) applies under subsection (d)(1)(A). 
(d) ELECTIONS AND RELATED TERMS.—
(1) YEARS FOR WHICH ELECTION MADE.—
(A) ALTERNATIVE FUNDING SCHEDULE.—If an election 
under subsection (a)(1) was made with respect to an eligible 
plan, the plan sponsor may select either a plan year begin-
ning in 2006 or a plan year beginning in 2007 as the 
first plan year to which such election applies. The election 
shall apply to such plan year and all subsequent years. 
The election shall be made—
(i) not later than December 31, 2006, in the case 
of an election for a plan year beginning in 2006, or 
(ii) not later than December 31, 2007, in the case 
of an election for a plan year beginning in 2007. 
(B) 10 YEAR AMORTIZATION.—An election under sub-
section (a)(2) shall be made not later than December 31, 
2007. 
(C) ELECTION OF NEW PLAN YEAR FOR ALTERNATIVE 
FUNDING SCHEDULE.—In the case of an election under sub-
section (a)(1), the plan sponsor may specify a new plan 
year in such election and the plan year of the plan may 
be changed to such new plan year without the approval 
of the Secretary of the Treasury. 
(2) MANNER OF ELECTION.—A plan sponsor shall make any 
election under subsection (a) in such manner as the Secretary
H. R. 4—146
of the Treasury may prescribe. Such election, once made, may 
be revoked only with the consent of such Secretary. 
(e) MINIMUM REQUIRED CONTRIBUTION.—In the case of an 
eligible plan with respect to which an election is made under 
subsection (a)(1)—
(1) IN GENERAL.—In the case of any applicable plan year 
during the amortization period, the minimum required con-
tribution shall be the amount necessary to amortize the 
unfunded liability of the plan, determined as of the first day 
of the plan year, in equal annual installments (until fully 
amortized) over the remainder of the amortization period. Such 
amount shall be separately determined for each applicable plan 
year. 
(2) YEARS
AFTER
AMORTIZATION
PERIOD.—In the case of 
any plan year beginning after the end of the amortization 
period, section 302(a)(2)(A) of such Act and section 412(a)(2)(A) 
of such Code shall apply to such plan, but the prefunding 
balance and funding standard carryover balance as of the first 
day of the first of such years under section 303(f) of such 
Act and section 430(f) of such Code shall be zero. 
(3) DEFINITIONS.—For purposes of this section—
(A) 
UNFUNDED
LIABILITY.—The 
term 
‘‘unfunded 
liability’’ means the unfunded accrued liability under the 
plan, determined under the unit credit funding method. 
(B) AMORTIZATION
PERIOD.—The term ‘‘amortization 
period’’ means the 17-plan year period beginning with the 
first applicable plan year. 
(4) OTHER RULES.—In determining the minimum required 
contribution and amortization amount under this subsection—
(A) the provisions of section 302(c)(3) of such Act and 
section 412(c)(3) of such Code, as in effect before the date 
of enactment of this section, shall apply, 
(B) a rate of interest of 8.85 percent shall be used 
for all calculations requiring an interest rate, and 
(C) the value of plan assets shall be equal to their 
fair market value. 
(5) SPECIAL RULE FOR CERTAIN PLAN SPINOFFS.—For pur-
poses of subsection (b), if, with respect to any eligible plan 
to which this subsection applies—
(A) any applicable plan year includes the date of the 
enactment of this Act, 
(B) a plan was spun off from the eligible plan during 
the plan year but before such date of enactment, 
the minimum required contribution under paragraph (1) for 
the eligible plan for such applicable plan year shall be an 
aggregate amount determined as if the plans were a single 
plan for that plan year (based on the full 12-month plan year 
in effect prior to the spin-off). The employer shall designate 
the allocation of such aggregate amount between such plans 
for the applicable plan year. 
(f) SPECIAL RULES FOR CERTAIN BALANCES AND WAIVERS.—
In the case of an eligible plan with respect to which an election 
is made under subsection (a)(1)—
(1) FUNDING STANDARD ACCOUNT AND CREDIT BALANCES.—
Any charge or credit in the funding standard account under 
section 302 of such Act or section 412 of such Code, and any 
prefunding balance or funding standard carryover balance
H. R. 4—147
under section 303 of such Act or section 430 of such Code, 
as of the day before the first day of the first applicable plan 
year, shall be reduced to zero. 
(2) WAIVED FUNDING DEFICIENCIES.—Any waived funding 
deficiency under sections 302 and 303 of such Act or section 
412 of such Code, as in effect before the date of enactment 
of this section, shall be deemed satisfied as of the first day 
of the first applicable plan year and the amount of such waived 
funding deficiency shall be taken into account in determining 
the plan’s unfunded liability under subsection (e)(3)(A). In the 
case of a plan amendment adopted to satisfy the requirements 
of subsection (b)(2), the plan shall not be deemed to violate 
section 304(b) of such Act or section 412(f) of such Code, as 
so in effect, by reason of such amendment or any increase 
in benefits provided to such plan’s participants under a separate 
plan that is a defined contribution plan or a multiemployer 
plan. 
(g) OTHER RULES FOR PLANS MAKING ELECTION UNDER THIS 
SECTION.—
(1) SUCCESSOR PLANS TO CERTAIN PLANS.—If—
(A) an election under paragraph (1) or (2) of subsection 
(a) is in effect with respect to any eligible plan, and 
(B) the eligible plan is maintained by an employer 
that establishes or maintains 1 or more other defined ben-
efit plans (other than any multiemployer plan), and such 
other plans in combination provide benefit accruals to any 
substantial number of successor employees, 
the Secretary of the Treasury may, in the Secretary’s discretion, 
determine that any trust of which any other such plan is 
a part does not constitute a qualified trust under section 401(a) 
of the Internal Revenue Code of 1986 unless all benefit obliga-
tions of the eligible plan have been satisfied. For purposes 
of this paragraph, the term ‘‘successor employee’’ means any 
employee who is or was covered by the eligible plan and any 
employees who perform substantially the same type of work 
with respect to the same business operations as an employee 
covered by such eligible plan. 
(2) SPECIAL RULES FOR TERMINATIONS.—
(A) PBGC LIABILITY
LIMITED.—Section 4022 of the 
Employee Retirement Income Security Act of 1974, as 
amended by this Act, is amended by adding at the end 
the following new subsection: 
‘‘(h) SPECIAL RULE
FOR PLANS ELECTING CERTAIN FUNDING 
REQUIREMENTS.—If any plan makes an election under section 
402(a)(1) of the Pension Protection Act of 2006 and is terminated 
effective before the end of the 10-year period beginning on the 
first day of the first applicable plan year—
‘‘(1) this section shall be applied—
‘‘(A) by treating the first day of the first applicable 
plan year as the termination date of the plan, and 
‘‘(B) by determining the amount of guaranteed benefits 
on the basis of plan assets and liabilities as of such 
assumed termination date, and 
‘‘(2) notwithstanding section 4044(a), plan assets shall first 
be allocated to pay the amount, if any, by which—
‘‘(A) the amount of guaranteed benefits under this sec-
tion (determined without regard to paragraph (1) and on
H. R. 4—148
the basis of plan assets and liabilities as of the actual 
date of plan termination), exceeds 
‘‘(B) the amount determined under paragraph (1).’’. 
(B) 
TERMINATION
PREMIUM.—In 
applying 
section 
4006(a)(7)(A) of the Employee Retirement Income Security 
Act of 1974 to an eligible plan during any period in which 
an election under subsection (a)(1) is in effect—
(i) ‘‘$2,500’’ shall be substituted for ‘‘$1,250’’ in 
such section if such plan terminates during the 5-
year period beginning on the first day of the first 
applicable plan year with respect to such plan, and 
(ii) such section shall be applied without regard 
to subparagraph (B) of section 8101(d)(2) of the Deficit 
Reduction Act of 2005 (relating to special rule for plans 
terminated in bankruptcy). 
The substitution described in clause (i) shall not apply 
with respect to any plan if the Secretary of Labor deter-
mines that such plan terminated as a result of extraor-
dinary circumstances such as a terrorist attack or other 
similar event. 
(3) LIMITATION ON DEDUCTIONS UNDER CERTAIN PLANS.—
Section 404(a)(7)(C)(iv) of the Internal Revenue Code of 1986, 
as added by this Act, shall not apply with respect to any 
taxable year of a plan sponsor of an eligible plan if any 
applicable plan year with respect to such plan ends with or 
within such taxable year. 
(4) NOTICE.—In the case of a plan amendment adopted 
in order to comply with this section, any notice required under 
section 204(h) of such Act or section 4980F(e) of such Code 
shall be provided within 15 days of the effective date of such 
plan amendment. This subsection shall not apply to any plan 
unless such plan is maintained pursuant to one or more collec-
tive bargaining agreements between employee representatives 
and 1 or more employers. 
(h) EXCLUSION OF CERTAIN EMPLOYEES FROM MINIMUM COV-
ERAGE REQUIREMENTS.—
(1) IN GENERAL.—Section 410(b)(3) of such Code is amended 
by striking the last sentence and inserting the following: ‘‘For 
purposes of subparagraph (B), management pilots who are not 
represented in accordance with title II of the Railway Labor 
Act shall be treated as covered by a collective bargaining agree-
ment described in such subparagraph if the management pilots 
manage the flight operations of air pilots who are so represented 
and the management pilots are, pursuant to the terms of the 
agreement, included in the group of employees benefitting 
under the trust described in such subparagraph. Subparagraph 
(B) shall not apply in the case of a plan which provides contribu-
tions or benefits for employees whose principal duties are not 
customarily performed aboard an aircraft in flight (other than 
management pilots described in the preceding sentence).’’
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to years beginning before, on, or after the 
date of the enactment of this Act. 
(i) EXTENSION
OF SPECIAL RULE
FOR ADDITIONAL FUNDING 
REQUIREMENTS.—In the case of an employer which is a commercial 
passenger airline, section 302(d)(12) of the Employee Retirement 
Income Security Act of 1974 and section 412(l)(12) of the Internal
H. R. 4—149
Revenue Code of 1986, as in effect before the date of the enactment 
of this Act, shall each be applied—
(1) by substituting ‘‘December 28, 2007’’ for ‘‘December 
28, 2005’’ in subparagraph (D)(i) thereof, and 
(2) without regard to subparagraph (D)(ii). 
(j) EFFECTIVE DATE.—Except as otherwise provided in this sec-
tion, the provisions of and amendments made by this section shall 
apply to plan years ending after the date of the enactment of 
this Act. 
SEC. 403. LIMITATION ON PBGC GUARANTEE OF SHUTDOWN AND 
OTHER BENEFITS. 
(a) IN GENERAL.—Section 4022(b) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(b)) is amended by 
adding at the end the following: 
‘‘(8) If an unpredictable contingent event benefit (as defined 
in section 206(g)(1)) is payable by reason of the occurrence 
of any event, this section shall be applied as if a plan amend-
ment had been adopted on the date such event occurred.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to benefits that become payable as a result of an 
event which occurs after July 26, 2005. 
SEC. 404. RULES RELATING TO BANKRUPTCY OF EMPLOYER. 
(a) GUARANTEE.—Section 4022 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322) is amended by adding 
at the end the following: 
‘‘(g) BANKRUPTCY
FILING
SUBSTITUTED
FOR
TERMINATION 
DATE.—If a contributing sponsor of a plan has filed or has had 
filed against such person a petition seeking liquidation or reorga-
nization in a case under title 11, United States Code, or under 
any similar Federal law or law of a State or political subdivision, 
and the case has not been dismissed as of the termination date 
of the plan, then this section shall be applied by treating the 
date such petition was filed as the termination date of the plan.’’. 
(b) ALLOCATION OF ASSETS AMONG PRIORITY GROUPS IN BANK-
RUPTCY PROCEEDINGS.—Section 4044 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1344) is amended by adding 
at the end the following: 
‘‘(e) BANKRUPTCY
FILING
SUBSTITUTED
FOR
TERMINATION 
DATE.—If a contributing sponsor of a plan has filed or has had 
filed against such person a petition seeking liquidation or reorga-
nization in a case under title 11, United States Code, or under 
any similar Federal law or law of a State or political subdivision, 
and the case has not been dismissed as of the termination date 
of the plan, then subsection (a)(3) shall be applied by treating 
the date such petition was filed as the termination date of the 
plan.’’. 
(c) EFFECTIVE DATE.—The amendments made this section shall 
apply with respect to proceedings initiated under title 11, United 
States Code, or under any similar Federal law or law of a State 
or political subdivision, on or after the date that is 30 days after 
the date of enactment of this Act. 
SEC. 405. PBGC PREMIUMS FOR SMALL PLANS. 
(a) SMALL PLANS.—Paragraph (3) of section 4006(a) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)) is amended—
H. R. 4—150
(1) by striking ‘‘The additional’’ in subparagraph (E)(i) and 
inserting ‘‘Except as provided in subparagraph (H), the addi-
tional’’, and 
(2) by inserting after subparagraph (G) the following new 
subparagraph: 
‘‘(H)(i) In the case of an employer who has 25 or fewer 
employees on the first day of the plan year, the additional premium 
determined under subparagraph (E) for each participant shall not 
exceed $5 multiplied by the number of participants in the plan 
as of the close of the preceding plan year. 
‘‘(ii) For purposes of clause (i), whether an employer has 25 
or fewer employees on the first day of the plan year is determined 
by taking into consideration all of the employees of all members 
of the contributing sponsor’s controlled group. In the case of a 
plan maintained by two or more contributing sponsors, the 
employees of all contributing sponsors and their controlled groups 
shall be aggregated for purposes of determining whether the 25-
or-fewer-employees limitation has been satisfied.’’
(b) EFFECTIVE DATES.—The amendment made by this section 
shall apply to plan years beginning after December 31, 2006. 
SEC. 406. AUTHORIZATION FOR PBGC TO PAY INTEREST ON PREMIUM 
OVERPAYMENT REFUNDS. 
(a) IN GENERAL.—Section 4007(b) of the Employment Retire-
ment Income Security Act of 1974 (29 U.S.C. 1307(b)) is amended—
(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, and 
(2) by inserting at the end the following new paragraph: 
‘‘(2) The corporation is authorized to pay, subject to regulations 
prescribed by the corporation, interest on the amount of any over-
payment of premium refunded to a designated payor. Interest under 
this paragraph shall be calculated at the same rate and in the 
same manner as interest is calculated for underpayments under 
paragraph (1).’’
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to interest accruing for periods beginning not earlier 
than the date of the enactment of this Act. 
SEC. 407. RULES FOR SUBSTANTIAL OWNER BENEFITS IN TERMINATED 
PLANS. 
(a) MODIFICATION
OF
PHASE-IN
OF
GUARANTEE.—Section 
4022(b)(5) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1322(b)(5)) is amended to read as follows: 
‘‘(5)(A) For purposes of this paragraph, the term ‘majority 
owner’ means an individual who, at any time during the 60-month 
period ending on the date the determination is being made—
‘‘(i) owns the entire interest in an unincorporated trade 
or business, 
‘‘(ii) in the case of a partnership, is a partner who owns, 
directly or indirectly, 50 percent or more of either the capital 
interest or the profits interest in such partnership, or 
‘‘(iii) in the case of a corporation, owns, directly or 
indirectly, 50 percent or more in value of either the voting 
stock of that corporation or all the stock of that corporation. 
For purposes of clause (iii), the constructive ownership rules of 
section 1563(e) of the Internal Revenue Code of 1986 (other than 
paragraph (3)(C) thereof) shall apply, including the application of 
such rules under section 414(c) of such Code.
H. R. 4—151
‘‘(B) In the case of a participant who is a majority owner, 
the amount of benefits guaranteed under this section shall equal 
the product of—
‘‘(i) a fraction (not to exceed 1) the numerator of which 
is the number of years from the later of the effective date 
or the adoption date of the plan to the termination date, and 
the denominator of which is 10, and 
‘‘(ii) the amount of benefits that would be guaranteed under 
this section if the participant were not a majority owner.’’
(b) MODIFICATION OF ALLOCATION OF ASSETS.—
(1) Section 4044(a)(4)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1344(a)(4)(B)) is 
amended by striking ‘‘section 4022(b)(5)’’ and inserting ‘‘section 
4022(b)(5)(B)’’. 
(2) Section 4044(b) of such Act (29 U.S.C. 1344(b)) is 
amended—
(A) by striking ‘‘(5)’’ in paragraph (2) and inserting 
‘‘(4), (5),’’, and 
(B) by redesignating paragraphs (3) through (6) as 
paragraphs (4) through (7), respectively, and by inserting 
after paragraph (2) the following new paragraph: 
‘‘(3) If assets available for allocation under paragraph (4) 
of subsection (a) are insufficient to satisfy in full the benefits 
of all individuals who are described in that paragraph, the 
assets shall be allocated first to benefits described in subpara-
graph (A) of that paragraph. Any remaining assets shall then 
be allocated to benefits described in subparagraph (B) of that 
paragraph. If assets allocated to such subparagraph (B) are 
insufficient to satisfy in full the benefits described in that 
subparagraph, the assets shall be allocated pro rata among 
individuals on the basis of the present value (as of the termi-
nation date) of their respective benefits described in that 
subparagraph.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 4021 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1321) is amended—
(A) in subsection (b)(9), by striking ‘‘as defined in sec-
tion 4022(b)(6)’’, and 
(B) by adding at the end the following new subsection: 
‘‘(d) For purposes of subsection (b)(9), the term ‘substantial 
owner’ means an individual who, at any time during the 60-month 
period ending on the date the determination is being made—
‘‘(1) owns the entire interest in an unincorporated trade 
or business, 
‘‘(2) in the case of a partnership, is a partner who owns, 
directly or indirectly, more than 10 percent of either the capital 
interest or the profits interest in such partnership, or 
‘‘(3) in the case of a corporation, owns, directly or indirectly, 
more than 10 percent in value of either the voting stock of 
that corporation or all the stock of that corporation. 
For purposes of paragraph (3), the constructive ownership rules 
of section 1563(e) of the Internal Revenue Code of 1986 (other 
than paragraph (3)(C) thereof) shall apply, including the application 
of such rules under section 414(c) of such Code.’’. 
(2) Section 4043(c)(7) of such Act (29 U.S.C. 1343(c)(7)) 
is amended by striking ‘‘section 4022(b)(6)’’ and inserting ‘‘sec-
tion 4021(d)’’.
H. R. 4—152
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to plan termi-
nations—
(A) under section 4041(c) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341(c)) with 
respect to which notices of intent to terminate are provided 
under section 4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) 
after December 31, 2005, and 
(B) under section 4042 of such Act (29 U.S.C. 1342) 
with respect to which notices of determination are provided 
under such section after such date. 
(2) CONFORMING AMENDMENTS.—The amendments made by 
subsection (c) shall take effect on January 1, 2006. 
SEC. 408. ACCELERATION OF PBGC COMPUTATION OF BENEFITS 
ATTRIBUTABLE TO RECOVERIES FROM EMPLOYERS. 
(a) MODIFICATION OF AVERAGE RECOVERY PERCENTAGE OF OUT-
STANDING AMOUNT OF BENEFIT LIABILITIES PAYABLE BY CORPORA-
TION TO PARTICIPANTS AND BENEFICIARIES.—Section 4022(c)(3)(B)(ii) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1322(c)(3)(B)(ii)) is amended to read as follows: 
‘‘(ii) notices of intent to terminate were provided 
(or in the case of a termination by the corporation, 
a notice of determination under section 4042 was 
issued) during the 5-Federal fiscal year period ending 
with the third fiscal year preceding the fiscal year 
in which occurs the date of the notice of intent to 
terminate (or the notice of determination under section 
4042) with respect to the plan termination for which 
the recovery ratio is being determined.’’
(b) VALUATION OF SECTION 4062(c) LIABILITY FOR DETERMINING 
AMOUNTS PAYABLE BY CORPORATION TO PARTICIPANTS AND BENE-
FICIARIES.—
(1) SINGLE-EMPLOYER PLAN BENEFITS GUARANTEED.—Sec-
tion 4022(c)(3)(A) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 13) is amended to read as follows: 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(C), the term ‘recovery ratio’ means the ratio which—
‘‘(i) the sum of the values of all recoveries under 
section 4062, 4063, or 4064, determined by the corpora-
tion in connection with plan terminations described 
under subparagraph (B), bears to 
‘‘(ii) the sum of all unfunded benefit liabilities 
under such plans as of the termination date in connec-
tion with any such prior termination.’’. 
(2) ALLOCATION OF ASSETS.—Section 4044 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1362) is 
amended by adding at the end the following new subsection: 
‘‘(e) VALUATION OF SECTION 4062(c) LIABILITY FOR DETERMINING 
AMOUNTS PAYABLE BY CORPORATION TO PARTICIPANTS AND BENE-
FICIARIES.—
‘‘(1) IN GENERAL.—In the case of a terminated plan, the 
value of the recovery of liability under section 4062(c) allocable 
as a plan asset under this section for purposes of determining 
the amount of benefits payable by the corporation shall be 
determined by multiplying—
H. R. 4—153
‘‘(A) the amount of liability under section 4062(c) as 
of the termination date of the plan, by 
‘‘(B) the applicable section 4062(c) recovery ratio. 
‘‘(2) SECTION 4062(c) RECOVERY
RATIO.—For purposes of 
this subsection—
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(C), the term ‘section 4062(c) recovery ratio’ means the 
ratio which—
‘‘(i) the sum of the values of all recoveries under 
section 4062(c) determined by the corporation in 
connection with plan terminations described under 
subparagraph (B), bears to 
‘‘(ii) the sum of all the amounts of liability under 
section 4062(c) with respect to such plans as of the 
termination date in connection with any such prior 
termination. 
‘‘(B) 
PRIOR
TERMINATIONS.—A 
plan 
termination 
described in this subparagraph is a termination with 
respect to which—
‘‘(i) the value of recoveries under section 4062(c) 
have been determined by the corporation, and 
‘‘(ii) notices of intent to terminate were provided 
(or in the case of a termination by the corporation, 
a notice of determination under section 4042 was 
issued) during the 5-Federal fiscal year period ending 
with the third fiscal year preceding the fiscal year 
in which occurs the date of the notice of intent to 
terminate (or the notice of determination under section 
4042) with respect to the plan termination for which 
the recovery ratio is being determined. 
‘‘(C) EXCEPTION.—In the case of a terminated plan 
with respect to which the outstanding amount of benefit 
liabilities exceeds $20,000,000, the term ‘section 4062(c) 
recovery ratio’ means, with respect to the termination of 
such plan, the ratio of—
‘‘(i) the value of the recoveries on behalf of the 
plan under section 4062(c), to 
‘‘(ii) the amount of the liability owed under section 
4062(c) as of the date of plan termination to the trustee 
appointed under section 4042 (b) or (c). 
‘‘(3) SUBSECTION NOT TO APPLY.—This subsection shall not 
apply with respect to the determination of—
‘‘(A) whether the amount of outstanding benefit liabil-
ities exceeds $20,000,000, or 
‘‘(B) the amount of any liability under section 4062 
to the corporation or the trustee appointed under section 
4042 (b) or (c). 
‘‘(4) DETERMINATIONS.—Determinations under this sub-
section shall be made by the corporation. Such determinations 
shall be binding unless shown by clear and convincing evidence 
to be unreasonable.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply for any termination for which notices of intent to termi-
nate are provided (or in the case of a termination by the corporation, 
a notice of determination under section 4042 under the Employee 
Retirement Income Security Act of 1974 is issued) on or after
H. R. 4—154
the date which is 30 days after the date of enactment of this 
section. 
SEC. 409. TREATMENT OF CERTAIN PLANS WHERE CESSATION OR 
CHANGE IN MEMBERSHIP OF A CONTROLLED GROUP. 
(a) IN GENERAL.—Section 4041(b) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341(b)) is amended by 
adding at the end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR CERTAIN PLANS WHERE CESSATION 
OR CHANGE IN MEMBERSHIP OF A CONTROLLED GROUP.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), if—
‘‘(i) there is transaction or series of transactions 
which result in a person ceasing to be a member of 
a controlled group, and 
‘‘(ii) such person immediately before the trans-
action or series of transactions maintained a single-
employer plan which is a defined benefit plan which 
is fully funded, 
then the interest rate used in determining whether the 
plan is sufficient for benefit liabilities or to otherwise assess 
plan liabilities for purposes of this subsection or section 
4042(a)(4) shall be not less than the interest rate used 
in determining whether the plan is fully funded. 
‘‘(B) LIMITATIONS.—Subparagraph (A) shall not apply 
to any transaction or series of transactions unless—
‘‘(i) any employer maintaining the plan imme-
diately before or after such transaction or series of 
transactions—
‘‘(I) has an outstanding senior unsecured debt 
instrument which is rated investment grade by 
each of the nationally recognized statistical rating 
organizations for corporate bonds that has issued 
a credit rating for such instrument, or 
‘‘(II) if no such debt instrument of such 
employer has been rated by such an organization 
but 1 or more of such organizations has made 
an issuer credit rating for such employer, all such 
organizations which have so rated the employer 
have rated such employer investment grade, and 
‘‘(ii) the employer maintaining the plan after the 
transaction or series of transactions employs at least 
20 percent of the employees located in the United 
States who were employed by such employer imme-
diately before the transaction or series of transactions. 
‘‘(C) FULLY FUNDED.—For purposes of subparagraph 
(A), a plan shall be treated as fully funded with respect 
to any transaction or series of transactions if—
‘‘(i) in the case of a transaction or series of trans-
actions which occur in a plan year beginning before 
January 1, 2008, the funded current liability percent-
age determined under section 302(d) for the plan year 
is at least 100 percent, and 
‘‘(ii) in the case of a transaction or series of trans-
actions which occur in a plan year beginning on or
H. R. 4—155
after such date, the funding target attainment percent-
age determined under section 303 is, as of the valuation 
date for such plan year, at least 100 percent. 
‘‘(D) 2 YEAR LIMITATION.—Subparagraph (A) shall not 
apply to any transaction or series of transactions if the 
plan referred to in subparagraph (A)(ii) is terminated under 
section 4041(c) or 4042 after the close of the 2-year period 
beginning on the date on which the first such transaction 
occurs.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any transaction or series of transactions occurring 
on and after the date of the enactment of this Act. 
SEC. 410. MISSING PARTICIPANTS. 
(a) IN GENERAL.—Section 4050 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1350) is amended by redesig-
nating subsection (c) as subsection (e) and by inserting after sub-
section (b) the following new subsections: 
‘‘(c) MULTIEMPLOYER PLANS.—The corporation shall prescribe 
rules similar to the rules in subsection (a) for multiemployer plans 
covered by this title that terminate under section 4041A. 
‘‘(d) PLANS NOT OTHERWISE SUBJECT TO TITLE.—
‘‘(1) TRANSFER TO CORPORATION.—The plan administrator 
of a plan described in paragraph (4) may elect to transfer 
a missing participant’s benefits to the corporation upon termi-
nation of the plan. 
‘‘(2) INFORMATION
TO
THE
CORPORATION.—To the extent 
provided in regulations, the plan administrator of a plan 
described in paragraph (4) shall, upon termination of the plan, 
provide the corporation information with respect to benefits 
of a missing participant if the plan transfers such benefits—
‘‘(A) to the corporation, or 
‘‘(B) to an entity other than the corporation or a plan 
described in paragraph (4)(B)(ii). 
‘‘(3) PAYMENT
BY
THE
CORPORATION.—If benefits of a 
missing participant were transferred to the corporation under 
paragraph (1), the corporation shall, upon location of the partici-
pant or beneficiary, pay to the participant or beneficiary the 
amount transferred (or the appropriate survivor benefit) 
either—
‘‘(A) in a single sum (plus interest), or 
‘‘(B) in such other form as is specified in regulations 
of the corporation. 
‘‘(4) PLANS DESCRIBED.—A plan is described in this para-
graph if—
‘‘(A) the plan is a pension plan (within the meaning 
of section 3(2))—
‘‘(i) to which the provisions of this section do not 
apply (without regard to this subsection), and 
‘‘(ii) which is not a plan described in paragraphs 
(2) through (11) of section 4021(b), and 
‘‘(B) at the time the assets are to be distributed upon 
termination, the plan—
‘‘(i) has missing participants, and 
‘‘(ii) has not provided for the transfer of assets 
to pay the benefits of all missing participants to
H. R. 4—156
another pension plan (within the meaning of section 
3(2)). 
‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.—Subsections (a)(1) 
and (a)(3) shall not apply to a plan described in paragraph 
(4).’’. 
(b) CONFORMING AMENDMENTS.—Section 206(f) of such Act (29 
U.S.C. 1056(f)) is amended—
(1) by striking ‘‘title IV’’ and inserting ‘‘section 4050’’; and 
(2) by striking ‘‘the plan shall provide that,’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions made after final regulations imple-
menting subsections (c) and (d) of section 4050 of the Employee 
Retirement Income Security Act of 1974 (as added by subsection 
(a)), respectively, are prescribed. 
SEC. 411. DIRECTOR OF THE PENSION BENEFIT GUARANTY CORPORA-
TION. 
(a) IN GENERAL.—Title IV of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1301 et seq.) is amended—
(1) by striking the second sentence of section 4002(a) and 
inserting the following: ‘‘In carrying out its functions under 
this title, the corporation shall be administered by a Director, 
who shall be appointed by the President, by and with the 
advice and consent of the Senate, and who shall act in accord-
ance with the policies established by the board.’’; and 
(2) in section 4003(b), by—
(A) striking ‘‘under this title, any member’’ and 
inserting ‘‘under this title, the Director, any member’’; and 
(B) striking ‘‘designated by the chairman’’ and inserting 
‘‘designated by the Director or chairman’’. 
(b) COMPENSATION
OF DIRECTOR.—Section 5314 of title 5, 
United States Code, is amended by adding at the end the following 
new item: 
‘‘Director, Pension Benefit Guaranty Corporation.’’. 
(c) JURISDICTION OF NOMINATION.—
(1) IN GENERAL.—The Committee on Finance of the Senate 
and the Committee on Health, Education, Labor, and Pensions 
of the Senate shall have joint jurisdiction over the nomination 
of a person nominated by the President to fill the position 
of Director of the Pension Benefit Guaranty Corporation under 
section 4002 of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1302) (as amended by this Act), and if 
one committee votes to order reported such a nomination, the 
other shall report within 30 calendar days, or be automatically 
discharged. 
(2) RULEMAKING
OF
THE
SENATE.—This subsection is 
enacted by Congress—
(A) as an exercise of rulemaking power of the Senate, 
and as such it is deemed a part of the rules of the Senate, 
but applicable only with respect to the procedure to be 
followed in the Senate in the case of a nomination described 
in such sentence, and it supersedes other rules only to 
the extent that it is inconsistent with such rules; and 
(B) with full recognition of the constitutional right 
of the Senate to change the rules (so far as relating to 
the procedure of the Senate) at any time, in the same
H. R. 4—157
manner and to the same extent as in the case of any 
other rule of the Senate. 
(d) TRANSITION.—The term of the individual serving as Execu-
tive Director of the Pension Benefit Guaranty Corporation on the 
date of enactment of this Act shall expire on such date of enactment. 
Such individual, or any other individual, may serve as interim 
Director of such Corporation until an individual is appointed as 
Director of such Corporation under section 4002 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1302) (as 
amended by this Act). 
SEC. 412. INCLUSION OF INFORMATION IN THE PBGC ANNUAL REPORT. 
Section 4008 of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1308) is amended by—
(1) striking ‘‘As soon as practicable’’ and inserting ‘‘(a) 
As soon as practicable’’; and 
(2) adding at the end the following: 
‘‘(b) The report under subsection (a) shall include—
‘‘(1) a summary of the Pension Insurance Modeling System 
microsimulation model, including the specific simulation param-
eters, specific initial values, temporal parameters, and policy 
parameters used to calculate the financial statements for the 
corporation; 
‘‘(2) a comparison of—
‘‘(A) the average return on investments earned with 
respect to assets invested by the corporation for the year 
to which the report relates; and 
‘‘(B) an amount equal to 60 percent of the average 
return on investment for such year in the Standard & 
Poor’s 500 Index, plus 40 percent of the average return 
on investment for such year in the Lehman Aggregate 
Bond Index (or in a similar fixed income index); and 
‘‘(3) a statement regarding the deficit or surplus for such 
year that the corporation would have had if the corporation 
had earned the return described in paragraph (2)(B) with 
respect to assets invested by the corporation.’’. 
TITLE V—DISCLOSURE 
SEC. 501. DEFINED BENEFIT PLAN FUNDING NOTICE. 
(a) IN GENERAL.—Section 101(f) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021(f)) is amended to 
read as follows: 
‘‘(f) DEFINED BENEFIT PLAN FUNDING NOTICES.—
‘‘(1) IN GENERAL.—The administrator of a defined benefit 
plan to which title IV applies shall for each plan year provide 
a plan funding notice to the Pension Benefit Guaranty Corpora-
tion, to each plan participant and beneficiary, to each labor 
organization representing such participants or beneficiaries, 
and, in the case of a multiemployer plan, to each employer 
that has an obligation to contribute to the plan. 
‘‘(2) INFORMATION CONTAINED IN NOTICES.—
‘‘(A) IDENTIFYING INFORMATION.—Each notice required 
under paragraph (1) shall contain identifying information, 
including the name of the plan, the address and phone 
number of the plan administrator and the plan’s principal
H. R. 4—158
administrative officer, each plan sponsor’s employer identi-
fication number, and the plan number of the plan. 
‘‘(B) SPECIFIC
INFORMATION.—A plan funding notice 
under paragraph (1) shall include—
‘‘(i)(I) in the case of a single-employer plan, a state-
ment as to whether the plan’s funding target attain-
ment percentage (as defined in section 303(d)(2)) for 
the plan year to which the notice relates, and for 
the 2 preceding plan years, is at least 100 percent 
(and, if not, the actual percentages), or 
‘‘(II) in the case of a multiemployer plan, a state-
ment as to whether the plan’s funded percentage (as 
defined in section 305(i)) for the plan year to which 
the notice relates, and for the 2 preceding plan years, 
is at least 100 percent (and, if not, the actual percent-
ages), 
‘‘(ii)(I) in the case of a single-employer plan, a 
statement of—
‘‘(aa) the total assets (separately stating the 
prefunding balance and the funding standard 
carryover balance) and liabilities of the plan, deter-
mined in the same manner as under section 303, 
for the plan year for which the latest annual report 
filed under section 104(a) was filed and for the 
2 preceding plan years, as reported in the annual 
report for each such plan year, and 
‘‘(bb) the value of the plan’s assets and liabil-
ities for the plan year to which the notice relates 
as of the last day of the plan year to which the 
notice relates determined using the asset valuation 
under subclause (II) of section 4006(a)(3)(E)(iii) 
and 
the 
interest 
rate 
under 
section 
4006(a)(3)(E)(iv), and 
‘‘(II) in the case of a multiemployer plan, a state-
ment of the value of the plan’s assets and liabilities 
for the plan year to which the notice relates as the 
last day of such plan year and the preceding 2 plan 
years, 
‘‘(iii) a statement of the number of participants 
who are—
‘‘(I) retired or separated from service and are 
receiving benefits, 
‘‘(II) retired or separated participants entitled 
to future benefits, and 
‘‘(III) active participants under the plan, 
‘‘(iv) a statement setting forth the funding policy 
of the plan and the asset allocation of investments 
under the plan (expressed as percentages of total 
assets) as of the end of the plan year to which the 
notice relates, 
‘‘(v) in the case of a multiemployer plan, whether 
the plan was in critical or endangered status under 
section 305 for such plan year and, if so—
‘‘(I) a statement describing how a person may 
obtain a copy of the plan’s funding improvement 
or rehabilitation plan, as appropriate, adopted 
under section 305 and the actuarial and financial
H. R. 4—159
data that demonstrate any action taken by the 
plan toward fiscal improvement, and 
‘‘(II) a summary of any funding improvement 
plan, rehabilitation plan, or modification thereof 
adopted under section 305 during the plan year 
to which the notice relates, 
‘‘(vi) in the case of any plan amendment, scheduled 
benefit increase or reduction, or other known event 
taking effect in the current plan year and having a 
material effect on plan liabilities or assets for the 
year (as defined in regulations by the Secretary), an 
explanation of the amendment, schedule increase or 
reduction, or event, and a projection to the end of 
such plan year of the effect of the amendment, sched-
uled increase or reduction, or event on plan liabilities, 
‘‘(vii)(I) in the case of a single-employer plan, a 
summary of the rules governing termination of single-
employer plans under subtitle C of title IV, or 
‘‘(II) in the case of a multiemployer plan, a sum-
mary of the rules governing reorganization or insol-
vency, including the limitations on benefit payments, 
‘‘(viii) a general description of the benefits under 
the plan which are eligible to be guaranteed by the 
Pension Benefit Guaranty Corporation, along with an 
explanation of the limitations on the guarantee and 
the circumstances under which such limitations apply, 
‘‘(ix) a statement that a person may obtain a copy 
of the annual report of the plan filed under section 
104(a) upon request, through the Internet website of 
the Department of Labor, or through an Intranet 
website maintained by the applicable plan sponsor (or 
plan administrator on behalf of the plan sponsor), and 
‘‘(x) if applicable, a statement that each contrib-
uting sponsor, and each member of the contributing 
sponsor’s controlled group, of the single-employer plan 
was required to provide the information under section 
4010 for the plan year to which the notice relates. 
‘‘(C) OTHER INFORMATION.—Each notice under para-
graph (1) shall include—
‘‘(i) in the case of a multiemployer plan, a state-
ment that the plan administrator shall provide, upon 
written request, to any labor organization representing 
plan participants and beneficiaries and any employer 
that has an obligation to contribute to the plan, a 
copy of the annual report filed with the Secretary 
under section 104(a), and 
‘‘(ii) any additional information which the plan 
administrator elects to include to the extent not incon-
sistent with regulations prescribed by the Secretary. 
‘‘(3) TIME FOR PROVIDING NOTICE.—
‘‘(A) IN
GENERAL.—Any notice under paragraph (1) 
shall be provided not later than 120 days after the end 
of the plan year to which the notice relates. 
‘‘(B) EXCEPTION FOR SMALL PLANS.—In the case of a 
small plan (as such term is used under section 303(g)(2)(B)) 
any notice under paragraph (1) shall be provided upon 
filing of the annual report under section 104(a).
H. R. 4—160
‘‘(4) FORM AND MANNER.—Any notice under paragraph (1)—
‘‘(A) shall be provided in a form and manner prescribed 
in regulations of the Secretary, 
‘‘(B) shall be written in a manner so as to be understood 
by the average plan participant, and 
‘‘(C) may be provided in written, electronic, or other 
appropriate form to the extent such form is reasonably 
accessible to persons to whom the notice is required to 
be provided.’’. 
(b) REPEAL OF NOTICE TO PARTICIPANTS OF FUNDING STATUS.—
(1) IN GENERAL.—Title IV of such Act (29 U.S.C. 1301 
et seq.) is amended by striking section 4011. 
(2) CLERICAL
AMENDMENT.—Section 1 of such Act is 
amended in the table of contents by striking the item relating 
to section 4011. 
(c) MODEL NOTICE.—Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Labor shall publish 
a model version of the notice required by section 101(f) of the 
Employee Retirement Income Security Act of 1974. The Secretary 
of Labor may promulgate any interim final rules as the Secretary 
determines appropriate to carry out the provisions of this sub-
section. 
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section 
shall apply to plan years beginning after December 31, 2007, 
except that the amendment made by subsection (b) shall apply 
to plan years beginning after December 31, 2006. 
(2) TRANSITION
RULE.—Any requirement under section 
101(f) of the Employee Retirement Income Security Act of 1974 
(as amended by this section) to report the funding target attain-
ment percentage or funded percentage of a plan with respect 
to any plan year beginning before January 1, 2008, shall be 
treated as met if the plan reports—
(A) in the case of a plan year beginning in 2006, 
the funded current liability percentage (as defined in sec-
tion 302(d)(8) of such Act) of the plan for such plan year, 
and 
(B) in the case of a plan year beginning in 2007, 
the funding target attainment percentage or funded 
percentage as determined using such methods of estimation 
as the Secretary of the Treasury may provide. 
SEC. 502. ACCESS TO MULTIEMPLOYER PENSION PLAN INFORMATION. 
(a) FINANCIAL INFORMATION WITH RESPECT TO MULTIEMPLOYER 
PLANS.—
(1) IN GENERAL.—Section 101 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021), as amended 
by section 103, is amended—
(A) by redesignating subsection (k) as subsection (l); 
and 
(B) by inserting after subsection (j) the following new 
subsection: 
‘‘(k) MULTIEMPLOYER PLAN INFORMATION MADE AVAILABLE ON 
REQUEST.—
‘‘(1) IN GENERAL.—Each administrator of a multiemployer 
plan shall, upon written request, furnish to any plan participant
H. R. 4—161
or beneficiary, employee representative, or any employer that 
has an obligation to contribute to the plan—
‘‘(A) a copy of any periodic actuarial report (including 
any sensitivity testing) received by the plan for any plan 
year which has been in the plan’s possession for at least 
30 days, 
‘‘(B) a copy of any quarterly, semi-annual, or annual 
financial report prepared for the plan by any plan invest-
ment manager or advisor or other fiduciary which has 
been in the plan’s possession for at least 30 days, and 
‘‘(C) a copy of any application filed with the Secretary 
of the Treasury requesting an extension under section 304 
of this Act or section 431(d) of the Internal Revenue Code 
of 1986 and the determination of such Secretary pursuant 
to such application. 
‘‘(2) COMPLIANCE.—Information required to be provided 
under paragraph (1)—
‘‘(A) shall be provided to the requesting participant, 
beneficiary, or employer within 30 days after the request 
in a form and manner prescribed in regulations of the 
Secretary, 
‘‘(B) may be provided in written, electronic, or other 
appropriate form to the extent such form is reasonably 
accessible to persons to whom the information is required 
to be provided, and 
‘‘(C) shall not—
‘‘(i) include any individually identifiable informa-
tion regarding any plan participant, beneficiary, 
employee, fiduciary, or contributing employer, or 
‘‘(ii) reveal any proprietary information regarding 
the plan, any contributing employer, or entity pro-
viding services to the plan. 
‘‘(3) LIMITATIONS.—In no case shall a participant, bene-
ficiary, or employer be entitled under this subsection to receive 
more than one copy of any report or application described 
in paragraph (1) during any one 12-month period. The adminis-
trator may make a reasonable charge to cover copying, mailing, 
and other costs of furnishing copies of information pursuant 
to paragraph (1). The Secretary may by regulations prescribe 
the maximum amount which will constitute a reasonable charge 
under the preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such Act (29 U.S.C. 
1132(c)(4)) is amended by striking ‘‘section 101(j)’’ and inserting 
‘‘subsection (j) or (k) of section 101’’. 
(3) REGULATIONS.—The Secretary shall prescribe regula-
tions under section 101(k)(2) of the Employee Retirement 
Income Security Act of 1974 (as added by paragraph (1)) not 
later than 1 year after the date of the enactment of this Act. 
(b) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY TO MULTIEM-
PLOYER PLANS.—
(1) IN GENERAL.—Section 101 of such Act (as amended 
by subsection (a)) is amended—
(A) by redesignating subsection (l) as subsection (m); 
and 
(B) by inserting after subsection (k) the following new 
subsection: 
‘‘(l) NOTICE OF POTENTIAL WITHDRAWAL LIABILITY.—
H. R. 4—162
‘‘(1) IN GENERAL.—The plan sponsor or administrator of 
a multiemployer plan shall, upon written request, furnish to 
any employer who has an obligation to contribute to the plan 
a notice of—
‘‘(A) the estimated amount which would be the amount 
of such employer’s withdrawal liability under part 1 of 
subtitle E of title IV if such employer withdrew on the 
last day of the plan year preceding the date of the request, 
and 
‘‘(B) an explanation of how such estimated liability 
amount was determined, including the actuarial assump-
tions and methods used to determine the value of the 
plan liabilities and assets, the data regarding employer 
contributions, unfunded vested benefits, annual changes 
in the plan’s unfunded vested benefits, and the application 
of any relevant limitations on the estimated withdrawal 
liability. 
For purposes of subparagraph (B), the term ‘employer contribu-
tion’ means, in connection with a participant, a contribution 
made by an employer as an employer of such participant. 
‘‘(2) COMPLIANCE.—Any notice required to be provided 
under paragraph (1)—
‘‘(A) shall be provided in a form and manner prescribed 
in regulations of the Secretary to the requesting employer 
within—
‘‘(i) 180 days after the request, or 
‘‘(ii) subject to regulations of the Secretary, such 
longer time as may be necessary in the case of a 
plan that determines withdrawal liability based on 
any method described under paragraph (4) or (5) of 
section 4211(c); and 
‘‘(B) may be provided in written, electronic, or other 
appropriate form to the extent such form is reasonably 
accessible to employers to whom the information is required 
to be provided. 
‘‘(3) LIMITATIONS.—In no case shall an employer be entitled 
under this subsection to receive more than one notice described 
in paragraph (1) during any one 12-month period. The person 
required to provide such notice may make a reasonable charge 
to cover copying, mailing, and other costs of furnishing such 
notice pursuant to paragraph (1). The Secretary may by regula-
tions prescribe the maximum amount which will constitute 
a reasonable charge under the preceding sentence.’’. 
(2) ENFORCEMENT.—Section 502(c)(4) of such Act (29 U.S.C. 
1132(c)(4)) is amended by striking ‘‘section 101(j) or (k)’’ and 
inserting ‘‘subsection (j), (k), or (l) of section 101’’. 
(c) NOTICE
OF AMENDMENT REDUCING FUTURE ACCRUALS.—
(1) AMENDMENT OF ERISA.—Section 204(h)(1) of such Act 
(29 U.S.C. 1054(h)(1)) is amended by inserting at the end 
before the period the following: ‘‘and to each employer who 
has an obligation to contribute to the plan’’. 
(2) AMENDMENT
OF
INTERNAL
REVENUE
CODE.—Section 
4980F(e)(1) of such Code is amended by adding at the end 
before the period the following: ‘‘and to each employer who 
has an obligation to contribute to the plan’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to plan years beginning after December 31, 2007.
H. R. 4—163
SEC. 503. ADDITIONAL ANNUAL REPORTING REQUIREMENTS. 
(a) ADDITIONAL
ANNUAL
REPORTING
REQUIREMENTS
WITH 
RESPECT TO DEFINED BENEFIT PLANS.—
(1) IN GENERAL.—Section 103 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1023) is amended—
(A) in subsection (a)(1)(B), by striking ‘‘subsections (d) 
and (e)’’ and inserting ‘‘subsections (d), (e), and (f)’’; and 
(B) by adding at the end the following new subsection: 
‘‘(f) ADDITIONAL INFORMATION WITH RESPECT TO DEFINED BEN-
EFIT PLANS.—
‘‘(1) LIABILITIES UNDER 2 OR MORE PLANS.—
‘‘(A) IN GENERAL.—In any case in which any liabilities 
to participants or their beneficiaries under a defined benefit 
plan as of the end of a plan year consist (in whole or 
in part) of liabilities to such participants and beneficiaries 
under 2 or more pension plans as of immediately before 
such plan year, an annual report under this section for 
such plan year shall include the funded percentage of each 
of such 2 or more pension plans as of the last day of 
such plan year and the funded percentage of the plan 
with respect to which the annual report is filed as of 
the last day of such plan year. 
‘‘(B) FUNDED PERCENTAGE.—For purposes of this para-
graph, the term ‘funded percentage’—
‘‘(i) in the case of a single-employer plan, means 
the funding target attainment percentage, as defined 
in section 303(d)(2), and 
‘‘(ii) in the case of a multiemployer plan, has the 
meaning given such term in section 305(i)(2). 
‘‘(2) 
ADDITIONAL
INFORMATION
FOR
MULTIEMPLOYER 
PLANS.—With respect to any defined benefit plan which is a 
multiemployer plan, an annual report under this section for 
a plan year shall include, in addition to the information 
required under paragraph (1), the following, as of the end 
of the plan year to which the report relates: 
‘‘(A) The number of employers obligated to contribute 
to the plan. 
‘‘(B) A list of the employers that contributed more 
than 5 percent of the total contributions to the plan during 
such plan year. 
‘‘(C) The number of participants under the plan on 
whose behalf no contributions were made by an employer 
as an employer of the participant for such plan year and 
for each of the 2 preceding plan years. 
‘‘(D) The ratios of—
‘‘(i) the number of participants under the plan 
on whose behalf no employer had an obligation to 
make an employer contribution during the plan year, 
to 
‘‘(ii) the number of participants under the plan 
on whose behalf no employer had an obligation to 
make an employer contribution during each of the 
2 preceding plan years. 
‘‘(E) Whether the plan received an amortization exten-
sion under section 304(d) of this Act or section 431(d) 
of the Internal Revenue Code of 1986 for such plan year
H. R. 4—164
and, if so, the amount of the difference between the min-
imum required contribution for the year and the minimum 
required contribution which would have been required 
without regard to the extension, and the period of such 
extension. 
‘‘(F) Whether the plan used the shortfall funding 
method (as such term is used in section 305) for such 
plan year and, if so, the amount of the difference between 
the minimum required contribution for the year and the 
minimum required contribution which would have been 
required without regard to the use of such method, and 
the period of use of such method. 
‘‘(G) Whether the plan was in critical or endangered 
status under section 305 for such plan year, and if so, 
a summary of any funding improvement or rehabilitation 
plan (or modification thereto) adopted during the plan year, 
and the funded percentage of the plan. 
‘‘(H) The number of employers that withdrew from 
the plan during the preceding plan year and the aggregate 
amount of withdrawal liability assessed, or estimated to 
be assessed, against such withdrawn employers. 
‘‘(I) In the case of a multiemployer plan that has 
merged with another plan or to which assets and liabilities 
have been transferred, the actuarial valuation of the assets 
and liabilities of each affected plan during the year pre-
ceding the effective date of the merger or transfer, based 
upon the most recent data available as of the day before 
the first day of the plan year, or other valuation method 
performed under standards and procedures as the Sec-
retary may prescribe by regulation.’’. 
(2) GUIDANCE BY SECRETARY OF LABOR.—Not later than 
1 year after the date of enactment of this Act, the Secretary 
of Labor shall publish guidance to assist multiemployer defined 
benefit plans to—
(A) identify and enumerate plan participants for whom 
there is no employer with an obligation to make an 
employer contribution under the plan; and 
(B) report such information under section 103(f)(2)(D) 
of the Employee Retirement Income Security Act of 1974 
(as added by this section). 
(b) ADDITIONAL INFORMATION IN ANNUAL ACTUARIAL STATE-
MENT REGARDING PLAN RETIREMENT PROJECTIONS.—Section 103(d) 
of such Act (29 U.S.C. 1023(d)) is amended—
(1) by redesignating paragraphs (12) and (13) as paragraphs 
(13) and (14), respectively; and 
(2) by inserting after paragraph (11) the following new 
paragraph: 
‘‘(12) A statement explaining the actuarial assumptions 
and methods used in projecting future retirements and forms 
of benefit distributions under the plan.’’. 
(c) REPEAL OF SUMMARY ANNUAL REPORT REQUIREMENT FOR 
DEFINED BENEFIT PLANS.—
(1) IN GENERAL.—Section 104(b)(3) of such Act (29 U.S.C. 
1024(b)(3)) is amended by inserting ‘‘(other than an adminis-
trator of a defined benefit plan to which the requirements 
of section 103(f) applies)’’ after ‘‘the administrators’’.
H. R. 4—165
(2) CONFORMING AMENDMENT.—Section 101(a)(2) of such 
Act (29 U.S.C. 1021(a)(2)) is amended by inserting ‘‘subsection 
(f) and’’ before ‘‘sections 104(b)(3) and 105(a) and (c)’’. 
(d) FURNISHING SUMMARY PLAN INFORMATION TO EMPLOYERS 
AND EMPLOYEE REPRESENTATIVES OF MULTIEMPLOYER PLANS.—Sec-
tion 104 of such Act (29 U.S.C. 1024) is amended—
(1) in the header, by striking ‘‘PARTICIPANTS’’ and inserting 
‘‘PARTICIPANTS AND CERTAIN EMPLOYERS’’; 
(2) by redesignating subsection (d) as subsection (e); and 
(3) by inserting after subsection (c) the following: 
‘‘(d) FURNISHING SUMMARY PLAN INFORMATION TO EMPLOYERS 
AND EMPLOYEE REPRESENTATIVES OF MULTIEMPLOYER PLANS.—
‘‘(1) IN GENERAL.—With respect to a multiemployer plan 
subject to this section, within 30 days after the due date under 
subsection (a)(1) for the filing of the annual report for the 
fiscal year of the plan, the administrators shall furnish to 
each employee organization and to each employer with an 
obligation to contribute to the plan a report that contains—
‘‘(A) a description of the contribution schedules and 
benefit formulas under the plan, and any modification to 
such schedules and formulas, during such plan year; 
‘‘(B) the number of employers obligated to contribute 
to the plan; 
‘‘(C) a list of the employers that contributed more than 
5 percent of the total contributions to the plan during 
such plan year; 
‘‘(D) the number of participants under the plan on 
whose behalf no contributions were made by an employer 
as an employer of the participant for such plan year and 
for each of the 2 preceding plan years; 
‘‘(E) whether the plan was in critical or endangered 
status under section 305 for such plan year and, if so, 
include—
‘‘(i) a list of the actions taken by the plan to 
improve its funding status; and 
‘‘(ii) a statement describing how a person may 
obtain a copy of the plan’s improvement or rehabilita-
tion plan, as applicable, adopted under section 305 
and the actuarial and financial data that demonstrate 
any action taken by the plan toward fiscal improve-
ment; 
‘‘(F) the number of employers that withdrew from the 
plan during the preceding plan year and the aggregate 
amount of withdrawal liability assessed, or estimated to 
be assessed, against such withdrawn employers, as reported 
on the annual report for the plan year to which the report 
under this subsection relates; 
‘‘(G) in the case of a multiemployer plan that has 
merged with another plan or to which assets and liabilities 
have been transferred, the actuarial valuation of the assets 
and liabilities of each affected plan during the year pre-
ceding the effective date of the merger or transfer, based 
upon the most recent data available as of the day before 
the first day of the plan year, or other valuation method 
performed under standards and procedures as the Sec-
retary may prescribe by regulation; 
‘‘(H) a description as to whether the plan—
H. R. 4—166
‘‘(i) sought or received an amortization extension 
under section 304(d) of this Act or section 431(d) of 
the Internal Revenue Code of 1986 for such plan year; 
or 
‘‘(ii) used the shortfall funding method (as such 
term is used in section 305) for such plan year; and 
‘‘(I) notification of the right under this section of the 
recipient to a copy of the annual report filed with the 
Secretary under subsection (a), summary plan description, 
summary of any material modification of the plan, upon 
written request, but that—
‘‘(i) in no case shall a recipient be entitled to 
receive more than one copy of any such document 
described during any one 12-month period; and 
‘‘(ii) the administrator may make a reasonable 
charge to cover copying, mailing, and other costs of 
furnishing copies of information pursuant to this 
subparagraph. 
‘‘(2) EFFECT OF SUBSECTION.—Nothing in this subsection 
waives any other provision under this title requiring plan 
administrators to provide, upon request, information to 
employers that have an obligation to contribute under the 
plan.’’. 
(e) MODEL FORM.—Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Labor shall publish 
a model form for providing the statements, schedules, and other 
material required to be provided under section 101(f) of the 
Employee Retirement Income Security Act of 1974, as amended 
by this section. The Secretary of Labor may promulgate any interim 
final rules as the Secretary determines appropriate to carry out 
the provisions of this subsection. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to plan years beginning after December 31, 2007. 
SEC. 504. ELECTRONIC DISPLAY OF ANNUAL REPORT INFORMATION. 
(a) ELECTRONIC DISPLAY OF INFORMATION.—Section 104(b) of 
such Act (29 U.S.C. 1024(b)) is amended by adding at the end 
the following: 
‘‘(5) Identification and basic plan information and actuarial 
information included in the annual report for any plan year shall 
be filed with the Secretary in an electronic format which accommo-
dates display on the Internet, in accordance with regulations which 
shall be prescribed by the Secretary. The Secretary shall provide 
for display of such information included in the annual report, within 
90 days after the date of the filing of the annual report, on an 
Internet website maintained by the Secretary and other appropriate 
media. Such information shall also be displayed on any Intranet 
website maintained by the plan sponsor (or by the plan adminis-
trator on behalf of the plan sponsor) for the purpose of commu-
nicating with employees and not the public, in accordance with 
regulations which shall be prescribed by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to plan years beginning after December 31, 2007.
H. R. 4—167
SEC. 505. SECTION 4010 FILINGS WITH THE PBGC. 
(a) CHANGE IN CRITERIA FOR PERSONS REQUIRED TO PROVIDE 
INFORMATION TO PBGC.—Section 4010(b) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1310(b)) is amended 
by striking paragraph (1) and inserting the following: 
‘‘(1) the funding target attainment percentage (as defined 
in subsection (d)) at the end of the preceding plan year of 
a plan maintained by the contributing sponsor or any member 
of its controlled group is less than 80 percent;’’. 
(b) ADDITIONAL INFORMATION REQUIRED.—Section 4010 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1310) 
is amended by adding at the end the following new subsection: 
‘‘(d) ADDITIONAL INFORMATION REQUIRED.—
‘‘(1) IN GENERAL.—The information submitted to the cor-
poration under subsection (a) shall include—
‘‘(A) the amount of benefit liabilities under the plan 
determined using the assumptions used by the corporation 
in determining liabilities; 
‘‘(B) the funding target of the plan determined as if 
the plan has been in at-risk status for at least 5 plan 
years; and 
‘‘(C) the funding target attainment percentage of the 
plan. 
‘‘(2) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) FUNDING TARGET.—The term ‘funding target’ has 
the meaning provided under section 303(d)(1). 
‘‘(B) FUNDING TARGET ATTAINMENT PERCENTAGE.—The 
term ‘funding target attainment percentage’ has the 
meaning provided under section 302(d)(2). 
‘‘(C) AT-RISK
STATUS.—The term ‘at-risk status’ has 
the meaning provided in section 303(i)(4). 
‘‘(e) NOTICE TO CONGRESS.—The corporation shall, on an annual 
basis, submit to the Committee on Health, Education, Labor, and 
Pensions and the Committee on Finance of the Senate and the 
Committee on Education and the Workforce and the Committee 
on Ways and Means of the House of Representatives, a summary 
report in the aggregate of the information submitted to the corpora-
tion under this section.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to years beginning after 2007. 
SEC. 506. DISCLOSURE OF TERMINATION INFORMATION TO PLAN 
PARTICIPANTS. 
(a) DISTRESS TERMINATIONS.—
(1) IN GENERAL.—Section 4041(c)(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1341(c)(2)) is 
amended by adding at the end the following: 
‘‘(D) DISCLOSURE OF TERMINATION INFORMATION.—
‘‘(i) IN GENERAL.—A plan administrator that has 
filed a notice of intent to terminate under subsection 
(a)(2) shall provide to an affected party any information 
provided to the corporation under subsection (a)(2) not 
later than 15 days after—
‘‘(I) receipt of a request from the affected party 
for the information; or 
‘‘(II) the provision of new information to the 
corporation relating to a previous request.
H. R. 4—168
‘‘(ii) CONFIDENTIALITY.—
‘‘(I) IN
GENERAL.—The plan administrator 
shall not provide information under clause (i) in 
a form that includes any information that may 
directly or indirectly be associated with, or other-
wise identify, an individual participant or bene-
ficiary. 
‘‘(II) LIMITATION.—A court may limit disclosure 
under this subparagraph of confidential informa-
tion described in section 552(b) of title 5, United 
States Code, to any authorized representative of 
the participants or beneficiaries that agrees to 
ensure the confidentiality of such information. 
‘‘(iii) 
FORM
AND
MANNER
OF
INFORMATION; 
CHARGES.—
‘‘(I) FORM AND MANNER.—The corporation may 
prescribe the form and manner of the provision 
of information under this subparagraph, which 
shall include delivery in written, electronic, or 
other appropriate form to the extent that such 
form is reasonably accessible to individuals to 
whom the information is required to be provided. 
‘‘(II) REASONABLE CHARGES.—A plan adminis-
trator may charge a reasonable fee for any 
information provided under this subparagraph in 
other than electronic form. 
‘‘(iv) AUTHORIZED REPRESENTATIVE.—For purposes 
of this subparagraph, the term ‘authorized representa-
tive’ means any employee organization representing 
participants in the pension plan.’’. 
(2) CONFORMING
AMENDMENT.—Section 4041(c)(1) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1341(c)(1)) is amended in subparagraph (C) by striking 
‘‘subparagraph (B)’’ and inserting ‘‘subparagraphs (B) and (D)’’. 
(b) INVOLUNTARY TERMINATIONS.—
(1) IN GENERAL.—Section 4042(c) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1342(c)) is 
amended by—
(A) striking ‘‘(c) If the’’ and inserting ‘‘(c)(1) If the’’; 
(B) redesignating paragraph (3) as paragraph (2); and 
(C) adding at the end the following: 
‘‘(3) DISCLOSURE OF TERMINATION INFORMATION.—
‘‘(A) IN GENERAL.—
‘‘(i) INFORMATION FROM PLAN SPONSOR OR ADMINIS-
TRATOR.—A plan sponsor or plan administrator of a 
single-employer plan that has received a notice from 
the corporation of a determination that the plan should 
be terminated under this section shall provide to an 
affected party any information provided to the corpora-
tion in connection with the plan termination. 
‘‘(ii) INFORMATION FROM CORPORATION.—The cor-
poration shall provide a copy of the administrative 
record, including the trusteeship decision record of a 
termination of a plan described under clause (i).
H. R. 4—169
‘‘(B) TIMING OF DISCLOSURE.—The plan sponsor, plan 
administrator, or the corporation, as applicable, shall pro-
vide the information described in subparagraph (A) not 
later than 15 days after—
‘‘(i) receipt of a request from an affected party 
for such information; or 
‘‘(ii) in the case of information described under 
subparagraph (A)(i), the provision of any new informa-
tion to the corporation relating to a previous request 
by an affected party. 
‘‘(C) CONFIDENTIALITY.—
‘‘(i) IN GENERAL.—The plan administrator and plan 
sponsor shall not provide information under subpara-
graph (A)(i) in a form which includes any information 
that may directly or indirectly be associated with, or 
otherwise identify, an individual participant or bene-
ficiary. 
‘‘(ii) LIMITATION.—A court may limit disclosure 
under this paragraph of confidential information 
described in section 552(b) of title 5, United States 
Code, to authorized representatives (within the 
meaning of section 4041(c)(2)(D)(iv)) of the participants 
or beneficiaries that agree to ensure the confidentiality 
of such information. 
‘‘(D) FORM AND MANNER OF INFORMATION; CHARGES.—
‘‘(i) FORM AND MANNER.—The corporation may pre-
scribe the form and manner of the provision of informa-
tion under this paragraph, which shall include delivery 
in written, electronic, or other appropriate form to 
the extent that such form is reasonably accessible to 
individuals to whom the information is required to 
be provided. 
‘‘(ii) REASONABLE CHARGES.—A plan sponsor may 
charge a reasonable fee for any information provided 
under this paragraph in other than electronic form.’’. 
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section 
shall apply to any plan termination under title IV of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1301 et seq.) with respect to which the notice of intent to 
terminate (or in the case of a termination by the Pension 
Benefit Guaranty Corporation, a notice of determination under 
section 4042 of such Act (29 U.S.C. 1342)) occurs after the 
date of enactment of this Act. 
(2) TRANSITION RULE.—If notice under section 4041(c)(2)(D) 
or 4042(c)(3) of the Employee Retirement Income Security Act 
of 1974 (as added by this section) would otherwise be required 
to be provided before the 90th day after the date of the enact-
ment of this Act, such notice shall not be required to be provided 
until such 90th day. 
SEC. 507. NOTICE OF FREEDOM TO DIVEST EMPLOYER SECURITIES. 
(a) IN GENERAL.—Section 101 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021), as amended by 
this Act, is amended by redesignating subsection (m) as subsection 
(n) and by inserting after subsection (l) the following: