I
103D CONGRESS
1ST SESSION
H. R. 3481
To provide participants in private pension plans which were terminated before
September 1, 1974, the nonforfeitable pension benefits which were lost
by reason of the termination, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 1993
Mr. ROEMER (for himself, Mr. SAWYER, and Mr. OBERSTAR) introduced the
following bill; which was referred to the Committee on Education and Labor
A BILL
To provide participants in private pension plans which were
terminated before September 1, 1974, the nonforfeitable
pension benefits which were lost by reason of the termi-
nation, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Pension Restoration
Act of 1993’’.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) 
STATE; 
UNITED
STATES.—The 
terms
‘‘State’’ and ‘‘United States’’ have the meanings set
forth in paragraph (10) of section 3 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1002).
(2) EMPLOYER; PARTICIPANT; BENEFICIARY;
NONFORFEITABLE; DEFINED BENEFIT PLAN.—The
terms ‘‘employer’’, ‘‘participant’’, ‘‘beneficiary’’,
‘‘nonforfeitable’’, and ‘‘defined benefit plan’’ have
the meanings set forth in paragraphs (5), (7), (8),
(19), and (35), respectively, of section 3 of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1002).
(3) EARLY
TERMINATED
PLAN.—The term
‘‘early terminated plan’’ means a defined benefit
plan—
(A) which is described in subsection (a) of
section 4 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1003) and is
not described in subsection (b) of that section,
and
(B) the termination date of which (as de-
termined
by
the
Corporation)
was
before
September 1, 1974.
(4) 
QUALIFIED
PARTICIPANT.—The 
term
‘‘qualified participant’’ means an individual who—
(A) was a participant in an early termi-
nated plan maintained by an employer of such
individual, and
(B) as of immediately before the termi-
nation of the plan had a nonforfeitable right to
benefits under the plan.
(5) QUALIFIED SPOUSE.—The term ‘‘qualified
spouse’’ means an individual who is the widow (with-
in the meaning of section 216(c) of the Social Secu-
rity Act (42 U.S.C. 416(c)) or the widower (within
the meaning of section 216(g) of such Act (42
U.S.C. 416(g)) of a qualified participant.
(6) CORPORATION.—The term ‘‘Corporation’’
means the Pension Benefit Guaranty Corporation.
SEC. 3. ENTITLEMENT TO ANNUITY.
(a) ENTITLEMENT OF QUALIFIED PARTICIPANT.—
(1) IN GENERAL.—A qualified participant is en-
titled, upon approval by the Corporation under this
Act of an application therefor, to an annuity payable
by the Corporation and computed under section
4(a).
(2) COMMENCEMENT.—The annuity of a quali-
fied participant commences on the day after the
later of—
(A) the effective date set forth in section
12, or
(B) the date on which the qualified partici-
pant attains 65 years of age.
(3) TERMINATION.—The annuity of a qualified
participant and the right thereto terminate at the
end of the last calendar month preceding the date of
the qualified participant’s death.
(b) ENTITLEMENT OF QUALIFIED SPOUSE.—
(1) IN GENERAL.—A qualified spouse is enti-
tled, upon approval by the Corporation under this
Act of an application therefor, to an annuity payable
by the Corporation and computed under section
4(b).
(2) COMMENCEMENT.—The annuity of a quali-
fied spouse of a qualified participant commences on
the latest of—
(A) the effective date set forth in section
12,
(B) the first day of the month in which the
qualified participant dies, or
(C) if the qualified participant dies before
attaining 65 years of age, the first day of the
month in which the qualified participant would
have attained such age but for the qualified
participant’s death.
(3) TERMINATION.—The annuity of a qualified
spouse and the right thereto terminate at the end of
the last calendar month preceding the date of the
qualified spouse’s death.
SEC. 4. COMPUTATION OF ANNUITY.
(a) QUALIFIED PARTICIPANT’S ANNUITY.—The an-
nuity computed under this subsection (relating to a quali-
fied participant) in connection with any early terminated
plan is equal to the excess (if any) of—
(1) the product derived by multiplying $75 by
the number of years of service of the qualified par-
ticipant under the plan, over
(2) the annual amount which would be nec-
essary to amortize in level amounts over 10 years
the sum of—
(A) any lump sums paid to the qualified
participant from the plan in connection with the
termination, and
(B) the actuarial present value (deter-
mined, as of the effective date set forth in sec-
tion 12, under the assumptions used by the
Corporation for purposes of section 4044 of the
Employee Retirement Income Security Act of
1974 (29 U.S.C. 1344)) of pension benefits
under the plan (if any) to which the qualified
participant retains a nonforfeitable right under
the plan.
(b) QUALIFIED SPOUSE’S ANNUITY.—The annuity
computed under this subsection (relating to the qualified
spouse of a qualified participant) in connection with an
early terminated plan is equal to the excess (if any) of—
(1) 50 percent of the amount determined under
paragraph (1) of subsection (a) in connection with
such qualified participant, over
(2) the annual amount which would be nec-
essary to amortize in level amounts over 10 years
the sum of—
(A) any lump sums paid to the qualified
spouse from the plan in connection with the ter-
mination, and
(B) the actuarial present value (deter-
mined, as of the effective date set forth in sec-
tion 12, under the assumptions used by the
Corporation for purposes of section 4044 of the
Employee Retirement Income Security Act of
1974 (29 U.S.C. 1344)) of pension benefits
under the plan (if any) to which the qualified
spouse retains a nonforfeitable right under the
plan.
SEC. 5. APPLICATIONS.
(a) REQUIREMENTS.—An application for an annuity
under this Act in connection with an early terminated plan
shall be approved if—
(1) the application includes evidence sufficient
to establish that the applicant is a qualified partici-
pant or qualified spouse in connection with such
plan, or
(2) the evidence included in the application, to-
gether with such evidence as the applicant may re-
quest the Corporation to consider pursuant to sub-
section (c), establishes that the applicant is a quali-
fied participant or a qualified spouse in connection
with such plan.
(b) APPLICATION FORMS.—The Corporation may by
regulation prescribe application forms which may be used
by applicants for purposes of subsection (a). Any such
forms prescribed by the Corporation shall be made avail-
able to the public by the Corporation.
(c) SPECIFIC MATTERS.—In considering applications
for annuities under this Act, the Corporation shall con-
sider, on the request of an applicant or the applicant’s
representative, in addition to any other relevant evi-
dence—
(1) a comparison of employment and payroll
records which were maintained under chapter 21 of
the Internal Revenue Code of 1986 (relating to Fed-
eral Insurance Contributions Act) or under title II
of the Social Security Act (42 U.S.C. 401 et seq.)
with records maintained by the Internal Revenue
Service relating to the qualification status of trusts
forming part of a stock bonus, pension, or profit-
sharing plan under part I of subchapter D of chap-
ter 1 of the Internal Revenue Code of 1986 (relating
to pension, profit sharing, stock bonus plans, etc.),
and
(2) records maintained under the Welfare and
Pension Plans Disclosure Act of 1958.
(d) PROCEDURES FOR INITIAL DETERMINATIONS.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, in making initial determina-
tions regarding applications for annuities under this
Act, the Corporation shall follow the procedures pre-
scribed by the Corporation for—
(A) initial determinations of benefit entitle-
ment of participants and beneficiaries under
plans to which section 4021 of the Employee
Retirement Income Security Act of 1974 (29
U.S.C. 1321) applies, and
(B) determinations of the amount of guar-
anteed benefits of such participants and bene-
ficiaries under title IV of such Act (29 U.S.C.
1301 et seq.).
(2) NOTICES
OF
DENIAL.—The Corporation
shall send any individual whose application under
this Act is denied by the Corporation pursuant to an
initial determination a written notice of the denial.
Such notice shall include the reason for the denial
and shall set forth the procedures required to be fol-
lowed in order to obtain review under this Act.
SEC. 6. ADMINISTRATIVE APPEALS.
(a) IN GENERAL.—Any individual whose application
for an annuity under this Act is denied pursuant to an
initial determination by the Corporation is entitled to—
(1) a reasonable time, but not less than 60 days
after receipt of the written notice of denial described
in section 5(d)(2), to request a review by the Cor-
poration and to furnish affidavits and other docu-
mentary evidence in support of the request, and
(2) a written decision and the specific reasons
therefor at the earliest practicable date.
(b) PROCEDURES.—Except as otherwise provided in
subsection (a), in reviewing initial determinations regard-
ing applications for annuities under this Act, the Corpora-
tion shall follow the procedures prescribed by the Corpora-
tion for requesting and obtaining administrative review by
the Corporation of determinations described in subpara-
graphs (A) and (B) of section 5(d)(1).
SEC. 7. JUDICIAL REVIEW.
(a) IN GENERAL.—Any individual, after any final de-
cision made under section 6, irrespective of the amount
in controversy, may obtain judicial review of the decision
by a civil action commenced under this section within 180
days after the mailing to the individual of notice of such
decision or within such further time as the Corporation
may allow.
(b) VENUE.—Any action commenced under this sec-
tion shall be brought in the district court of the United
States for the judicial district in which the plaintiff resides
or in the United States District Court for the District of
Columbia.
(c) RECORD.—As part of any answer by the Corpora-
tion, the Corporation shall file a certified copy of the tran-
script of the record, including the evidence upon which the
findings and decision complained of are based.
(d) JUDGMENT.—The court shall enter, upon the
pleadings and transcript of the record a judgment affirm-
ing, modifying, or reversing the decision, with or without
remanding the case for a rehearing.
(e) REMANDED CASES.—
(1) AUTHORITY TO REMAND TO THE CORPORA-
TION.—The court shall, on the motion of the Cor-
poration made before the Corporation files its an-
swer, remand the case to the Corporation for further
action by the Corporation. The court may, at any
time, on good cause shown, order additional evidence
to be taken before the Corporation.
(2) RECONSIDERATION ON REMAND.—The Cor-
poration shall, after the case is remanded, and after
hearing such additional evidence if so ordered—
(A) modify or affirm the earlier findings of
fact or decision, or both, under section 6, and
(B) file with the court any such additional
and modified findings of fact and decision, and
a transcript of the additional record and testi-
mony upon which the Corporation’s action in
modifying or affirming was based.
(f) FINAL JUDGMENT.—The judgment of the court
shall be final except that it shall be subject to review in
the same manner as a judgment in other civil actions.
SEC. 8. PAYMENT OF ANNUITIES.
(a) FORMS OF PAYMENT.—
(1) YEARLY PAYMENTS.—Each annuity payable
under this Act shall be payable as an annual
amount.
(2) RETROACTIVE LUMP-SUM PAYMENTS.—Any
individual whose claim for an annuity under this Act
is approved after the date on which the annuity com-
mences under subsection (a)(2) or (b)(2) of section
3 shall be paid the total amount of the annuity pay-
ments for periods before the date on which the claim
is approved in the form of a lump-sum payment.
(b) CASES OF INCOMPETENCY.—Payment due an in-
dividual mentally incompetent or under other legal disabil-
ity may be made to the person who is constituted guardian
or other fiduciary by the law of the State of residence of
the claimant or is otherwise legally vested with the care
of the claimant or the claimant’s estate. If a guardian or
other fiduciary of the individual under legal disability has
not been appointed under the law of the State of residence
of the claimant, payment may be made to any person who
is responsible for the care of the claimant, and the pay-
ment bars recovery by any other person.
(c) DIVORCES, ETC.—
(1) ALTERNATIVE
PAYEES.—Payments under
this Act which would otherwise be made to a person
under this Act shall be made (in whole or in part)
to another person if and to the extent expressly pro-
vided for in the terms of any court decree of divorce,
annulment, or legal separation, or the terms of any
court order or court-approved property settlement
agreement incident to any court decree of divorce,
annulment, or legal separation. Any payment under
this paragraph to a person bars recovery by any
other person.
(2) 
NOTIFICATION
REQUIREMENTS.—Para-
graph (1) shall only apply to payments made by the
Corporation under this Act after the date of receipt
by the Corporation of written notification of such de-
cree, order, or agreement, and such additional infor-
mation and documentation as the Corporation may
prescribe.
(3) COURT.—As used in this subsection, the
term ‘‘court’’ means any court of any State.
(d) INALIENABILITY.—Amounts payable under this
Act are not assignable, either in law or equity, or subject
to execution, levy, attachment, garnishment, or other legal
process, except as otherwise may be provided by Federal
law.
(e) FORGIVENESS.—Recovery of payments under this
Act may not be made from an individual in any case in
which the Corporation determines that the individual is
without fault and recovery would be against equity and
good conscience.
SEC. 9. INTERAGENCY COORDINATION AND COOPERATION.
(a) IN GENERAL.—The Corporation may make such
arrangements or agreements with other departments,
agencies, or establishments of the United States for co-
operation or mutual assistance in the performance of their
respective functions under this Act as are necessary and
appropriate to avoid unnecessary expense and duplication
of functions.
(b) USE OF FACILITIES.—The Corporation may use,
as appropriate, on a reimbursable or other basis, the facili-
ties or services of any department, agency, or establish-
ment of the United States or of any State or political sub-
division thereof, including the services of any of its em-
ployees, with the lawful consent of such department, agen-
cy, or establishment.
(c) COOPERATION.—
(1) IN GENERAL.—Each department, agency, or
establishment of the United States shall cooperate
with the Corporation and, to the extent necessary
and appropriate, provide such information and facili-
ties as the Corporation may request for its assist-
ance in the performance of the Corporation’s func-
tions under this Act.
(2) AVAILABILITY OF RECORDS FROM THE SEC-
RETARY OF HEALTH AND HUMAN SERVICES.—The
Secretary of Health and Human Services shall pro-
vide the Corporation with such records, determined
by the Corporation to be necessary to carry out the
purposes of this Act, as the Corporation may re-
quest.
(3) AVAILABILITY OF CONFIDENTIAL TAX RE-
TURNS
AND
RETURN
INFORMATION.—Section
6103(l) of the Internal Revenue Code of 1986 (relat-
ing to use of returns and return information for pur-
poses other than tax administration) is amended by
adding at the end of paragraph (2) the following
new sentence: ‘‘Returns and return information shall
be open to inspection by or disclosure to officers and
employees of the Corporation whose official duties
require such inspection or disclosure for the purpose
of, but only to the extent necessary in, considering
such returns and return information pursuant to
section 5(c)(1) of the Pension Restoration Act of
1993, except that such inspection or disclosure shall
be permitted only upon written request which sets
forth the specific reason or reasons why such inspec-
tion or disclosure is necessary and which is signed
by the head of the bureau or office of the Corpora-
tion requesting the inspection or disclosure.’’.
SEC. 10. REGULATIONS.
The Corporation shall, before the effective date set
forth in section 12, prescribe the initial regulations nec-
essary to carry out the provisions of this Act. Regulations
under this Act shall be prescribed by the Corporation in
consultation, as appropriate, with the Secretary of the
Treasury and the Secretary of Health and Human
Services.
SEC. 11. PROGRAM FUNDING.
(a) PAYMENT.—The Corporation shall use moneys
from the appropriate revolving funds established under
section 4005 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1305) to carry out its functions
under this Act.
(b) TRANSFERS FROM TRUST FUNDS.—The Cor-
poration shall transfer to the revolving funds described in
subsection (a) from the trust funds consisting of assets
of terminated plans and employer liability payments
amounts equal to the amounts needed to carry out its
functions under this Act.
SEC. 12. EFFECTIVE DATE.
(a) GENERAL RULE.—Except as provided in sub-
section (b), the provisions of this Act shall take effect 60
days after the date of the enactment of this Act.
(b) SPECIAL RULE.—The provisions of sections 10
and 11 shall take effect on the date of the enactment of
this Act.
Æ
HR 3481 IH——2