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and such other disbursements as the
Secretary shall provide in regulations.
‘‘(v) LIQUID ASSETS.—The term ‘liq-
uid assets’ means cash, marketable securi-
ties and such other assets as specified by
the Secretary in regulations.
‘‘(vi) QUARTER.—The term ‘quarter’
means, with respect to any required install-
ment, the 3-month period preceding the
month in which the due date for such in-
stallment occurs.
‘‘(F) REGULATIONS.—The Secretary may
prescribe such regulations as are necessary to
carry out this paragraph.’’
(B) EXCISE
TAX
ON
UNPAID
LIQUIDITY
SHORTFALL.—
(i) Subsection (e) of section 4971 is
amended by striking ‘‘(a) or (b)’’ wherever
it appears and inserting ‘‘(a), (b), or (f)’’.
(ii) Section 4971 is amended by redes-
ignating subsection (f) as subsection (g)
and adding a new subsection (f) to read as
follows:
‘‘(f) FAILURE TO PAY LIQUIDITY SHORTFALL.—
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‘‘(1) IN GENERAL.—In the case of a plan to
which section 412(m)(5) applies, there is hereby im-
posed a tax of 10 percent of the excess (if any) of—
‘‘(A) the amount of the liquidity shortfall
for any quarter, over
‘‘(B) the amount of such shortfall which is
paid by the required installment under section
412(m) for such quarter (but only if such in-
stallment is paid on or before the due date for
such installment).
‘‘(2) ADDITIONAL TAX.—If the plan has a li-
quidity shortfall as of the close of any quarter and
as of the close of each of the following 4 quarters,
there is hereby imposed a tax equal to 100 percent
of the amount on which tax was imposed by para-
graph (1) for such first quarter.
‘‘(3) DEFINITIONS AND SPECIAL RULE.—
‘‘(A) LIQUIDITY SHORTFALL; QUARTER.—
For purposes of this subsection, the terms ‘li-
quidity shortfall’ and ‘quarter’ have the respec-
tive meanings given such terms by section
412(m)(5).
‘‘(B) SPECIAL RULE.—If the tax imposed
by paragraph (2) is paid with respect to any li-
quidity shortfall for any quarter, no further tax
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shall be imposed by this subsection on such
shortfall for such quarter.’’
(C) TREATMENT
OF
FAILURE
TO
MAKE
CERTAIN
PAYMENTS
IF
PLAN
HAS
LIQUIDITY
SHORTFALL.—Section 401(a) is amended by
adding at the end the following new paragraph:
‘‘(32) TREATMENT OF FAILURE TO MAKE CER-
TAIN
PAYMENTS
IF
PLAN
HAS
LIQUIDITY
SHORT-
FALL.—
‘‘(A) IN GENERAL.—A trust forming part
of a pension plan to which section 412(m)(5)
applies shall not be treated as failing to con-
stitute a qualified trust under this section mere-
ly because such plan ceases to make any pay-
ment described in subparagraph (B) during any
period that such plan has a liquidity shortfall
(as defined in section 412(m)(5)).
‘‘(B) PAYMENTS DESCRIBED.—A payment
is described in this subparagraph if such pay-
ment is—
‘‘(i) any payment, in excess of the
monthly amount paid under a single life
annuity (plus any social security supple-
ments described in the last sentence of sec-
tion 411(a)(9)), to a participant or bene-
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ficiary whose annuity starting date (as de-
fined in section 417(f)(2)) occurs during
the period referred to in subparagraph (A),
‘‘(ii) any payment for the purchase of
an irrevocable commitment from an insurer
to pay benefits, and
‘‘(iii) any other payment specified by
the Secretary by regulations.
‘‘(C) PERIOD OF SHORTFALL.—For pur-
poses of this paragraph, a plan has a liquidity
shortfall during the period that there is an
underpayment of an installment under section
412(m) by reason of paragraph (5)(A) thereof.’’
(10) AMENDMENT
TO
DEFINITION
OF
FULL-
FUNDING LIMITATION.—
(A) Subparagraph (A) of section 412(c)(7)
is amended by inserting ‘‘(including the ex-
pected increase in current liability due to bene-
fits accruing during the plan year)’’ after ‘‘cur-
rent liability’’ in clause (i).
(B) Section 412(c)(7) is amended by add-
ing at the end the following new subparagraph:
‘‘(E) MINIMUM AMOUNT.—
‘‘(i) IN GENERAL.—In no event shall
the 
full-funding 
limitation 
determined
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under subparagraph (A) be less than the
excess (if any) of—
‘‘(I) 90 percent of the current li-
ability of the plan (including the ex-
pected increase in current liability due
to benefits accruing during the plan
year), over
‘‘(II) the value of the plan’s as-
sets determined under paragraph (2).
‘‘(ii) CURRENT LIABILITY; ASSETS.—
For purposes of clause (i)—
‘‘(I) the term ‘current liability’
has the meaning given such term by
subsection (l)(7) (without regard to
subparagraph (D) thereof), and
‘‘(II) assets shall not be reduced
by any credit balance in the funding
standard account.’’
(C) Subparagraph (B) of section 412(c)(7)
is amended to read as follows:
‘‘(B) CURRENT LIABILITY.—For purposes
of subparagraph (D) and subclause (I) of sub-
paragraph (A)(i), the term ‘current liability’
has the meaning given such term by subsection
(l)(7) (without regard to subparagraphs (C)
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and (D) thereof) and using the rate of interest
used under subsection (b)(5)(B).’’
(11) REFERENCE TO ACT.—Section 404(g)(4)
is amended by striking ‘‘the Single-Employer Pen-
sion Plan Amendments Act of 1986’’ and inserting
‘‘the Retirement Protection Act of 1994’’.
(b) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to plan years beginning after December
31, 1994.
(2) REFERENCE.—The amendment made by
subsection (a)(11) shall take effect on the date of
the enactment of this Act.
SEC. 752. LIMITATION ON CHANGES IN CURRENT LIABIL-
ITY ASSUMPTIONS.
(a) IN GENERAL.—Paragraph (5) of section 412(c)
is amended—
(1) by striking ‘‘If the funding method’’ and in-
serting the following:
‘‘(A) IN GENERAL.—If the funding meth-
od’’, and
(2) by adding at the end the following new sub-
paragraph:
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‘‘(B) APPROVAL REQUIRED FOR CERTAIN
CHANGES
IN
ASSUMPTIONS
BY
CERTAIN
SIN-
GLE-EMPLOYER
PLANS
SUBJECT
TO
ADDI-
TIONAL FUNDING REQUIREMENT.—
‘‘(i) IN GENERAL.—No actuarial as-
sumption (other than the assumptions de-
scribed in subsection (l)(7)(C)) used to de-
termine the current liability for a plan to
which this subparagraph applies may be
changed without the approval of the Sec-
retary.
‘‘(ii) PLANS
TO
WHICH
SUBPARA-
GRAPH APPLIES.—This subparagraph shall
apply to a plan only if—
‘‘(I) the plan is a defined benefit
plan (other than a multiemployer
plan) to which title IV of the Em-
ployee Retirement Income Security
Act of 1974 applies;
‘‘(II) the aggregate unfunded
vested benefits as of the close of the
preceding plan year (as determined
under section 4006(a)(3)(E)(iii) of the
Employee Retirement Income Security
Act of 1974) of such plan and all
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other plans maintained by the contrib-
uting sponsors (as defined in section
4001(a)(13) of such Act) and mem-
bers of such sponsors’ controlled
groups 
(as 
defined 
in 
section
4001(a)(14) of such Act) which are
covered by title IV of such Act (dis-
regarding plans with no unfunded
vested benefits) exceed $50,000,000;
and
‘‘(III) the change in assumptions
(determined after taking into account
any changes in interest rate and mor-
tality table) results in a decrease in
the unfunded current liability of the
plan for the current plan year that ex-
ceeds $50,000,000, or that exceeds
$5,000,000 and that is 5 percent or
more of the current liability of the
plan before such change.’’
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendment made by
this section shall apply to changes in assumptions
for plan years beginning after October 28, 1993.
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(2) CERTAIN CHANGES CEASE TO BE EFFEC-
TIVE.—In the case of changes in assumptions for
plan years beginning after December 31, 1992, and
on or before October 28, 1993, such changes shall
cease to be effective for plan years beginning after
December 31, 1994, if—
(A) such change would have required the
approval of the Secretary of the Treasury had
such amendment applied to such change, and
(B) such change is not so approved.
SEC. 753. ANTICIPATION OF BARGAINED BENEFIT IN-
CREASES.
(a) IN GENERAL.—Section 412(c) is amended by
adding at the end the following new paragraph:
‘‘(12) ANTICIPATION
OF
BENEFIT
INCREASES
EFFECTIVE IN THE FUTURE.—In determining pro-
jected benefits, the funding method of a collectively
bargained plan described in section 413(a) (other
than a multiemployer plan) shall anticipate benefit
increases scheduled to take effect during the term of
the collective bargaining agreement applicable to the
plan.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to plan years beginning after De-
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cember 31, 1994, with respect to collective bargaining
agreements in effect on or after January 1, 1995.
SEC. 754. MODIFICATION OF QUARTERLY CONTRIBUTION
REQUIREMENT.
(a) IN GENERAL.—Paragraph (1) of section 412(m)
is amended—
(1) by inserting ‘‘which has a funded current li-
ability percentage (as defined in subsection (l)(8))
for the preceding plan year of less than 100 per-
cent’’ before ‘‘fails’’, and
(2) by striking ‘‘any plan year’’ and inserting
‘‘the plan year’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to plan years beginning after the
date of enactment of this Act.
SEC. 755. EXCEPTIONS TO EXCISE TAX ON NONDEDUCT-
IBLE CONTRIBUTIONS.
(a) IN GENERAL.—Section 4972(c) is amended by
adding at the end the following new paragraph:
‘‘(6) EXCEPTIONS.—In determining the amount
of nondeductible contributions for any taxable year,
there shall not be taken into account—
‘‘(A) contributions that would be deduct-
ible under section 404(a)(1)(D) if the plan had
more than 100 participants if—
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‘‘(i) the plan is covered under section
4021 of the Employee Retirement Income
Security Act of 1974, and
‘‘(ii) the plan is terminated under sec-
tion 4041(b) of such Act on or before the
last day of the taxable year, and
‘‘(B) contributions to 1 or more defined
contribution plans which are not deductible
when contributed solely because of section
404(a)(7), but only to the extent such contribu-
tions do not exceed 6 percent of compensation
(within the meaning of section 404(a)) paid or
accrued (during the taxable year for which the
contributions were made) to beneficiaries under
the plans.
If 1 or more defined benefit plans were taken into
account in determining the amount allowable as a
deduction under section 404 for contributions to any
defined contribution plan, subparagraph (B) shall
apply only if such defined benefit plans are described
in section 404(a)(1)(D). For purposes of subpara-
graph (B), the deductible limits under section
404(a)(7) shall first be applied to amounts contrib-
uted to a defined benefit plan and then to amounts
described in subparagraph (B).’’
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(b) EFFECTIVE DATE.—
(1) 
SECTION
4972(c)(6)(A).—Section
4972(c)(6)(A) of the Internal Revenue Code of 1986
(as added by this section) shall apply to taxable
years ending on or after the date of enactment of
this Act.
(2) 
SECTION
4972(c)(6)(B).—Section
4972(c)(6)(B) of such Code (as added by this sec-
tion) shall apply to taxable years ending on or after
December 31, 1992.
Subpart B—Amendments to the Employee
Retirement Income Security Act of 1974
SEC. 761. MINIMUM FUNDING REQUIREMENTS.
(a) AMENDMENTS
TO ADDITIONAL FUNDING RE-
QUIREMENTS FOR SINGLE-EMPLOYER PLANS.—
(1) LIMITATIONS ON ADDITIONAL FUNDING RE-
QUIREMENT FOR CERTAIN PLANS.—
(A) IN GENERAL.—Paragraph (1) of sec-
tion 302(d) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1082(d)) is
amended by striking ‘‘which has an unfunded
current liability’’ and inserting ‘‘to which this
subsection applies under paragraph (9)’’.
(B) PLANS TO WHICH REQUIREMENT AP-
PLIES.—Section 302(d) of such Act is amended
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by adding at the end the following new para-
graph:
‘‘(9) APPLICABILITY OF SUBSECTION.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (6)(A), this subsection shall apply to
a plan for any plan year if its funded current
liability percentage for such year is less than 90
percent.
‘‘(B) EXCEPTION FOR CERTAIN PLANS AT
LEAST
PERCENT
FUNDED.—Subparagraph
(A) shall not apply to a plan for a plan year
if—
‘‘(i) the funded current liability per-
centage for the plan year is at least 80
percent, and
‘‘(ii) such percentage for each of the
2 immediately preceding plan years (or
each of the 2d and 3d immediately preced-
ing plan years) is at least 90 percent.
‘‘(C) FUNDED
CURRENT
LIABILITY
PER-
CENTAGE.—For purposes of subparagraphs (A)
and (B), the term ‘funded current liability per-
centage’ has the meaning given such term by
paragraph (8)(B), except that such percentage
shall be determined for any plan year—
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‘‘(i) without regard to paragraph
(8)(E), and
‘‘(ii) by using the rate of interest
which is the highest rate allowable for the
plan year under paragraph (7)(C).
‘‘(D) TRANSITION RULES.—For purposes
of this paragraph:
‘‘(i) 
FUNDED
PERCENTAGE
FOR
YEARS BEFORE 1995.—The funded current
liability percentage for any plan year be-
ginning before January 1, 1995, shall be
treated as not less than 90 percent only if
for such plan year the plan met one of the
following requirements (as in effect for
such year):
‘‘(I) The full-funding limitation
under subsection (c)(7) for the plan
was zero.
‘‘(II) The plan had no additional
funding requirement under this sub-
section (or would have had no such
requirement if its funded current li-
ability percentage had been deter-
mined under subparagraph (C)).
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‘‘(III) The plan’s additional fund-
ing requirement under this subsection
did not exceed the lesser of 0.5 per-
cent of current liability or $5,000,000.
‘‘(ii) SPECIAL
RULE
FOR
1995
AND
1996.—For purposes of determining wheth-
er subparagraph (B) applies to any plan
year beginning in 1995 or 1996, a plan
shall be treated as meeting the require-
ments of subparagraph (B)(ii) if the plan
met the requirements of clause (i) of this
subparagraph for any two of the plan years
beginning in 1992, 1993, and 1994
(whether or not consecutive).’’
(2) RELATIONSHIP
OF
ADDITIONAL
FUNDING
REQUIREMENT
TO
FUNDING
STANDARD
ACCOUNT
CHARGES AND CREDITS.—
(A) Clause (ii) of section 302(d)(1)(A) of
such Act is amended to read as follows:
‘‘(ii) the sum of the charges for such
plan year under subsection (b)(2), reduced
by the sum of the credits for such plan
year under subparagraph (B) of subsection
(b)(3), plus’’.
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(B) The last sentence in section 302(d)(1)
of such Act is amended to read as follows:
‘‘Such increase shall not exceed the amount which,
after taking into account charges (other than the ad-
ditional charge under this subsection) and credits
under subsection (b), is necessary to increase the
funded current liability percentage (taking into ac-
count the expected increase in current liability due
to benefits accruing during the plan year) to 100
percent.’’
(3) AMENDMENT TO DEFICIT REDUCTION CON-
TRIBUTION.—Paragraph (2) of section 302(d) of
such Act is amended—
(A) by striking ‘‘plus’’ at the end of sub-
paragraph (A);
(B) by striking the period at the end of
subparagraph (B) and inserting ‘‘, plus’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) the expected increase in current li-
ability due to benefits accruing during the plan
year.’’
(4) INCREASE IN CURRENT LIABILITY DUE TO
CHANGE IN REQUIRED ASSUMPTIONS.—
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(A) Paragraph (3) of section 302(d) of
such Act is amended by adding at the end the
following new subparagraphs:
‘‘(D) 
SPECIAL
RULE
FOR
REQUIRED
CHANGES IN ACTUARIAL ASSUMPTIONS.—
‘‘(i) IN GENERAL.—The unfunded old
liability amount with respect to any plan
for any plan year shall be increased by the
amount necessary to amortize the amount
of additional unfunded old liability under
the plan in equal annual installments over
a period of 12 plan years (beginning with
the first plan year beginning after Decem-
ber 31, 1994).
‘‘(ii) ADDITIONAL UNFUNDED OLD LI-
ABILITY.—For purposes of clause (i), the
term ‘additional unfunded old liability’
means the amount (if any) by which—
‘‘(I) the current liability of the
plan as of the beginning of the first
plan year beginning after December
31, 1994, valued using the assump-
tions required by paragraph (7)(C) as
in effect for plan years beginning
after December 31, 1994, exceeds
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‘‘(II) the current liability of the
plan as of the beginning of such first
plan year, valued using the same as-
sumptions used under subclause (I)
(other than the assumptions required
by paragraph (7)(C)), using the prior
interest rate, and using such mortality
assumptions as were used to deter-
mine current liability for the first plan
year beginning after December 31,
1992.
‘‘(iii) PRIOR
INTEREST
RATE.—For
purposes of clause (ii), the term ‘prior in-
terest rate’ means the rate of interest that
is the same percentage of the weighted av-
erage under subsection (b)(5)(B)(ii)(I) for
the first plan year beginning after Decem-
ber 31, 1994, as the rate of interest used
by the plan to determine current liability
for the first plan year beginning after De-
cember 31, 1992, is of the weighted aver-
age under subsection (b)(5)(B)(ii)(I) for
such first plan year beginning after De-
cember 31, 1992.
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‘‘(E) OPTIONAL
RULE
FOR
ADDITIONAL
UNFUNDED OLD LIABILITY.—
‘‘(i) IN
GENERAL.—If an employer
makes an election under clause (ii), the ad-
ditional unfunded old liability for purposes
of subparagraph (D) shall be the amount
(if any) by which—
‘‘(I) the unfunded current liabil-
ity of the plan as of the beginning of
the first plan year beginning after De-
cember 31, 1994, valued using the as-
sumptions 
required 
by 
paragraph
(7)(C) as in effect for plan years be-
ginning after December 31, 1994, ex-
ceeds
‘‘(II) the unamortized portion of
the unfunded old liability under the
plan as of the beginning of the first
plan year beginning after December
31, 1994.
‘‘(ii) ELECTION.—
‘‘(I) An employer may irrevocably
elect to apply the provisions of this
subparagraph as of the beginning of
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the first plan year beginning after De-
cember 31, 1994.
‘‘(II) If an election is made under
this clause, the increase under para-
graph (1) for any plan year beginning
after December 31, 1994, and before
January 1, 2002, to which this sub-
section applies (without regard to this
subclause) shall not be less than the
increase that would be required under
paragraph (1) if the provisions of this
title as in effect for the last plan year
beginning before January 1, 1995,
had remained in effect.’’
(B) Clause (i) of section 302(d)(4)(B) of
such Act is amended by inserting ‘‘, the
unamortized portion of the additional unfunded
old liability,’’ after ‘‘old liability’’.
(5) APPLICABLE PERCENTAGE FOR DETERMIN-
ING UNFUNDED NEW LIABILITY AMOUNT.—Subpara-
graph (C) of section 302(d)(4) of such Act is
amended—
(A) by striking ‘‘.25’’ and inserting ‘‘.40’’,
and
(B) by striking ‘‘35’’ and inserting ‘‘60’’.
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(6) 
UNPREDICTABLE
CONTINGENT
EVENT
AMOUNT.—
(A) Subparagraph (A) of section 302(d)(5)
of such Act is amended—
(i) by striking ‘‘greater of’’ and insert-
ing ‘‘greatest of’’ before clause (i);
(ii) by striking ‘‘or’’ at the end of
clause (i);
(iii) by striking the period at the end
of clause (ii) and inserting ‘‘, or’’; and
(iv) by adding after clause (ii) the fol-
lowing new clause:
‘‘(iii) the additional amount that
would be determined under paragraph
(4)(A) if the unpredictable contingent
event benefit liabilities were included in
unfunded new liability notwithstanding
paragraph (4)(B)(ii).’’
(B) Paragraph (5) of section 302(d) of
such Act is amended by adding at the end the
following new subparagraph:
‘‘(E) LIMITATION.—The present value of
the amounts described in subparagraph (A)
with respect to any one event shall not exceed
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the unpredictable contingent event benefit li-
abilities attributable to that event.’’
(C) Clause (ii) of section 302(e)(4)(D) of
such Act is amended—
(i) by striking ‘‘greater of’’ and insert-
ing ‘‘greatest of’’ before subclause (I);
(ii) by striking ‘‘or’’ at the end of
subclause (I);
(iii) by striking the period at the end
of subclause (II) and inserting ‘‘, or’’; and
(iv) by adding after subclause (II) the
following new clause:
‘‘(III) 25 percent of the amount
determined 
under 
subsection
(d)(5)(A)(iii) for the plan year.’’
(7) REQUIRED INTEREST RATE AND MORTALITY
ASSUMPTIONS FOR DETERMINING CURRENT LIABIL-
ITY.—
(A) IN
GENERAL.—Subparagraph (C) of
section 302(d)(7) of such Act is amended to
read as follows:
‘‘(C) INTEREST RATE AND MORTALITY AS-
SUMPTIONS USED.—Effective for plan years be-
ginning after December 31, 1994—
‘‘(i) INTEREST RATE.—
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‘‘(I) IN GENERAL.—The rate of
interest used to determine current li-
ability under this subsection shall be
the rate of interest used under sub-
section (b)(5), except that the highest
rate in the permissible range under
subparagraph (B)(ii) thereof shall not
exceed the specified percentage under
subclause (II) of the weighted average
referred to in such subparagraph.
‘‘(II) SPECIFIED PERCENTAGE.—
For purposes of subclause (I), the
specified percentage shall be deter-
mined as follows:
‘‘In the case of
plan years beginning
The specified
in calendar year:
percentage is:
1995 .................................................
109
1996 .................................................
108
1997 .................................................
107
1998 .................................................
106
1999 and thereafter .........................
105.
‘‘(ii) MORTALITY TABLES.—
‘‘(I) COMMISSIONERS’ STANDARD
TABLE.—In the case of plan years be-
ginning before the first plan year to
which the first tables prescribed under
subclause (II) apply, the mortality
table used in determining current li-
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ability under this subsection shall be
the table prescribed by the Secretary
of the Treasury which is based on the
prevailing 
commissioners’ 
standard
table 
(described 
in 
section
807(d)(5)(A) of the Internal Revenue
Code of 1986) used to determine re-
serves for group annuity contracts is-
sued on January 1, 1993.
‘‘(II) 
SECRETARIAL
AUTHOR-
ITY.—The Secretary of the Treasury
may by regulation prescribe for plan
years beginning after December 31,
1999, mortality tables to be used in
determining current liability under
this subsection. Such tables shall be
based upon the actual experience of
pension plans and projected trends in
such experience. In prescribing such
tables, the Secretary of the Treasury
shall take into account results of
available independent studies of mor-
tality of individuals covered by pen-
sion plans.
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‘‘(III) PERIODIC
REVIEW.—The
Secretary of the Treasury shall peri-
odically (at least every 5 years) review
any tables in effect under this sub-
section and shall, to the extent the
Secretary determines necessary, by
regulation update the tables to reflect
the actual experience of pension plans
and projected trends in such experi-
ence.
‘‘(iii) SEPARATE MORTALITY TABLES
FOR
THE
DISABLED.—Notwithstanding
clause (ii)—
‘‘(I) IN GENERAL.—In the case
of plan years beginning after Decem-
ber 31, 1995, the Secretary of the
Treasury shall establish mortality ta-
bles which may be used (in lieu of the
tables under clause (ii)) to determine
current liability under this subsection
for individuals who are entitled to
benefits under the plan on account of
disability. Such Secretary shall estab-
lish separate tables for individuals
whose disabilities occur in plan years
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beginning before January 1, 1995,
and for individuals whose disabilities
occur in plan years beginning on or
after such date.
‘‘(II) SPECIAL
RULE
FOR
DIS-
ABILITIES OCCURRING AFTER 1994.—
In the case of disabilities occurring in
plan years beginning after December
31, 1994, the tables under subclause
(I) shall apply only with respect to in-
dividuals described in such subclause
who are disabled within the meaning
of title II of the Social Security Act
and the regulations thereunder.
‘‘(III) PLAN
YEARS
BEGINNING
IN 1995.—In the case of any plan year
beginning in 1995, a plan may use its
own mortality assumptions for indi-
viduals who are entitled to benefits
under the plan on account of disabil-
ity.’’
(B) AMORTIZATION OF UNFUNDED MOR-
TALITY INCREASE AMOUNT.—
(i) IN
GENERAL.—Paragraph (2) of
section 302(d) of such Act, as amended by
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paragraph (3), is amended by striking
‘‘plus’’ at the end of subparagraph (B), by
striking the period at the end of subpara-
graph (C) and inserting ‘‘, and’’, and by
adding at the end the following new sub-
paragraph:
‘‘(D) the aggregate of the unfunded mor-
tality increase amounts.’’
(ii) UNFUNDED MORTALITY INCREASE
AMOUNT.—Section 302(d) of such Act, as
amended by paragraph (1), is amended by
adding at the end the following new para-
graph:
‘‘(10) 
UNFUNDED
MORTALITY
INCREASE
AMOUNT.—
‘‘(A) IN GENERAL.—The unfunded mortal-
ity increase amount with respect to each un-
funded mortality increase is the amount nec-
essary to amortize such increase in equal an-
nual installments over a period of 10 plan years
(beginning with the first plan year for which a
plan uses any new mortality table issued under
paragraph (7)(C)(ii)(II) or (III)).
‘‘(B) UNFUNDED MORTALITY INCREASE.—
For purposes of subparagraph (A), the term
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‘unfunded mortality increase’ means an amount
equal to the excess of—
‘‘(i) the current liability of the plan
for the first plan year for which a plan
uses any new mortality table issued under
paragraph (7)(C)(ii)(II) or (III), over
‘‘(ii) the current liability of the plan
for such plan year which would have been
determined if the mortality table in effect
for the preceding plan year had been
used.’’
(iii) 
CONFORMING
AMENDMENT.—
Clause (i) of section 302(d)(4)(B) of such
Act, as amended by paragraph (4)(B), is
amended by inserting ‘‘the unamortized
portion of each unfunded mortality in-
crease,’’ after ‘‘additional unfunded old li-
ability,’’.
(8) TRANSITION RULE.—Section 302(d) of such
Act, as amended by paragraph (7), is amended by
adding at the end the following new paragraph:
‘‘(11) PHASE-IN
OF
INCREASES
IN
FUNDING
REQUIRED
BY
RETIREMENT
PROTECTION
ACT
OF
1994.—
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‘‘(A) IN
GENERAL.—For any applicable
plan year, at the election of the employer, the
increase under paragraph (1) shall not exceed
the greater of—
‘‘(i) the increase that would be re-
quired under paragraph (1) if the provi-
sions of this title as in effect for plan years
beginning before January 1, 1995, had re-
mained in effect, or
‘‘(ii) the amount which, after taking
into account charges (other than the addi-
tional charge under this subsection) and
credits under subsection (b), is necessary
to increase the funded current liability per-
centage (taking into account the expected
increase
in current liability due to benefits accru-
ing during the plan year) for the applicable
plan year to a percentage equal to the sum
of the initial funded current liability per-
centage of the plan plus the applicable
number of percentage points for such ap-
plicable plan year.
‘‘(B) APPLICABLE NUMBER OF PERCENT-
AGE POINTS.—
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‘‘(i) INITIAL
FUNDED
CURRENT
LI-
ABILITY PERCENTAGE OF 75 PERCENT OR
LESS.—Except as provided in clause (ii),
for plans with an initial funded current li-
ability percentage of 75 percent or less, the
applicable number of percentage points for
the applicable plan year is:
‘‘In the case
The applicable
of applicable
number of
plan years
percentage
beginning in:
points is:
1995 .....................................................
1996 .....................................................
1997 .....................................................
1998 .....................................................
1999 .....................................................
2000 .....................................................
2001 .....................................................
24.
‘‘(ii) OTHER CASES.—In the case of a
plan to which this clause applies, the appli-
cable number of percentage points for any
such applicable plan year is the sum of—
‘‘(I) 2 percentage points;
‘‘(II) the applicable number of
percentage points (if any) under this
clause for the preceding applicable
plan year;
‘‘(III) the product of .10 multi-
plied by the excess (if any) of (a) 85
percentage points over (b) the sum of
the initial funded current liability per-
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centage and the number determined
under subclause (II);
‘‘(IV) for applicable plan years
beginning in 2000, 1 percentage
point; and
‘‘(V) for applicable plan years be-
ginning in 2001, 2 percentage points.
‘‘(iii) PLANS TO WHICH CLAUSE (ii)
APPLIES.—
‘‘(I) IN
GENERAL.—Clause (ii)
shall apply to a plan for an applicable
plan year if the initial funded current
liability percentage of such plan is
more than 75 percent.
‘‘(II) PLANS
INITIALLY
UNDER
CLAUSE
(i).—In the case of a plan
which (but for this subclause) has an
initial funded current liability percent-
age of 75 percent or less, clause (ii)
(and not clause (i)) shall apply to
such plan with respect to applicable
plan years beginning after the first
applicable plan year for which the
sum of the initial funded current li-
ability percentage and the applicable
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number of percentage points (deter-
mined under clause (i)) exceeds 75
percent. For purposes of applying
clause (ii) to such a plan, the initial
funded current liability percentage of
such plan shall be treated as being the
sum referred to in the preceding sen-
tence.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) The term ‘applicable plan year’
means a plan year beginning after Decem-
ber 31, 1994, and before January 1, 2002.
‘‘(ii) The term ‘initial funded current
liability percentage’ means the funded cur-
rent liability percentage as of the first day
of the first plan year beginning after De-
cember 31, 1994.’’
(9) LIQUIDITY REQUIREMENT.—
(A) IN GENERAL.—Section 302(e) of such
Act is amended by redesignating paragraph (5)
as paragraph (6) and by inserting after para-
graph (4) the following new paragraph:
‘‘(5) LIQUIDITY REQUIREMENT.—
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‘‘(A) IN GENERAL.—A plan to which this
paragraph applies shall be treated as failing to
pay the full amount of any required installment
to the extent that the value of the liquid assets
paid in such installment is less than the liquid-
ity shortfall (whether or not such liquidity
shortfall exceeds the amount of such install-
ment required to be paid but for this para-
graph).
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to a de-
fined benefit plan (other than a multiemployer
plan or a plan described in subsection
(d)(6)(A)) which—
‘‘(i) is required to pay installments
under this subsection for a plan year, and
‘‘(ii) has a liquidity shortfall for any
quarter during such plan year.
‘‘(C) PERIOD
OF
UNDERPAYMENT.—For
purposes of paragraph (1), any portion of an
installment that is treated as not paid under
subparagraph (A) shall continue to be treated
as unpaid until the close of the quarter in
which the due date for such installment occurs.
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‘‘(D) LIMITATION
ON
INCREASE.—If the
amount of any required installment is increased
by reason of subparagraph (A), in no event
shall such increase exceed the amount which,
when added to prior installments for the plan
year, is necessary to increase the funded cur-
rent liability percentage (taking into account
the expected increase in current liability due to
benefits accruing during the plan year) to 100
percent.
‘‘(E) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) 
LIQUIDITY
SHORTFALL.—The
term ‘liquidity shortfall’ means, with re-
spect to any required installment, an
amount equal to the excess (as of the last
day of the quarter for which such install-
ment is made) of the base amount with re-
spect to such quarter over the value (as of
such last day) of the plan’s liquid assets.
‘‘(ii) BASE AMOUNT.—
‘‘(I) IN
GENERAL.—The term
‘base amount’ means, with respect to
any quarter, an amount equal to 3
times the sum of the adjusted dis-
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bursements from the plan for the 12
months ending on the last day of such
quarter.
‘‘(II) SPECIAL
RULE.—If the
amount determined under clause (i)
exceeds an amount equal to 2 times
the sum of the adjusted disburse-
ments from the plan for the 36
months ending on the last day of the
quarter and an enrolled actuary cer-
tifies to the satisfaction of the Sec-
retary of the Treasury that such ex-
cess is the result of nonrecurring cir-
cumstances, the base amount with re-
spect to such quarter shall be deter-
mined without regard to amounts re-
lated 
to 
those 
nonrecurring 
cir-
cumstances.
‘‘(iii) DISBURSEMENTS
FROM
THE
PLAN.—The term ‘disbursements from the
plan’ means all disbursements from the
trust, including purchases of annuities,
payments of single sums and other bene-
fits, and administrative expenses.
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‘‘(iv) ADJUSTED
DISBURSEMENTS.—
The term ‘adjusted disbursements’ means
disbursements from the plan reduced by
the product of—
‘‘(I) the plan’s funded current li-
ability percentage (as defined in sub-
section (d)(8)) for the plan year, and
‘‘(II) the sum of the purchases of
annuities, payments of single sums,
and such other disbursements as the
Secretary of the Treasury shall pro-
vide in regulations.
‘‘(v) LIQUID ASSETS.—The term ‘liq-
uid assets’ means cash, marketable securi-
ties and such other assets as specified by
the Secretary of the Treasury in regula-
tions.
‘‘(vi) QUARTER.—The term ‘quarter’
means, with respect to any required install-
ment, the 3-month period preceding the
month in which the due date for such in-
stallment occurs.
‘‘(F) REGULATIONS.—The Secretary of the
Treasury may prescribe such regulations as are
necessary to carry out this paragraph.’’
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(B) 
LIMITATION
ON
DISTRIBUTIONS
OTHER THAN LIFE ANNUITIES PAID BY THE
PLAN.—
(i) Section 206 of the Employee Re-
tirement Income Security Act of 1974 (29
U.S.C. 1056) is amended by adding at the
end the following new subsection:
‘‘(e) LIMITATION ON DISTRIBUTIONS OTHER THAN
LIFE ANNUITIES PAID BY THE PLAN.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this part, the fiduciary of a pension plan
that is subject to the additional funding require-
ments of section 302(d) shall not permit a prohib-
ited payment to be made from a plan during a pe-
riod in which such plan has a liquidity shortfall (as
defined in section 302(e)(5)).
‘‘(2) PROHIBITED PAYMENT.—For purposes of
paragraph (1), the term ‘prohibited payment’
means—
‘‘(A) any payment, in excess of the month-
ly amount paid under a single life annuity (plus
any social security supplements described in the
last sentence of section 204(b)(1)(G)), to a par-
ticipant or beneficiary whose annuity starting
date (as defined in section 205(h)(2)), that oc-
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curs during the period referred to in paragraph
(1),
‘‘(B) any payment for the purchase of an
irrevocable commitment from an insurer to pay
benefits, and
‘‘(C) any other payment specified by the
Secretary of the Treasury by regulations.
‘‘(3) PERIOD OF SHORTFALL.—For purposes of
this subsection, a plan has a liquidity shortfall dur-
ing the period that there is an underpayment of an
installment under section 302(e) by reason of para-
graph (5)(A) thereof.
‘‘(4) COORDINATION
WITH
OTHER
PROVI-
SIONS.—Compliance with this subsection shall not
constitute a violation of any other provision of this
Act.’’
(ii) Section 502 of such Act is amend-
ed by adding at the end a new subsection
(m) to read as follows:
‘‘(m) In the case of a distribution to a pension plan
participant or beneficiary in violation of section 206(e) by
a plan fiduciary, the Secretary shall assess a penalty
against such fiduciary in an amount equal to the value
of the distribution. Such penalty shall not exceed $10,000
for each such distribution.’’
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(10) AMENDMENT
TO
DEFINITION
OF
FULL-
FUNDING LIMITATION.—
(A) Subparagraph (A) of section 302(c)(7)
of such Act is amended by inserting ‘‘(including
the expected increase in current liability due to
benefits accruing during the plan year)’’ after
‘‘current liability’’ in clause (i).
(B) Section 302(c)(7) of such Act is
amended by adding at the end the following
new subparagraph:
‘‘(E) MINIMUM AMOUNT.—
‘‘(i) IN GENERAL.—In no event shall
the 
full-funding 
limitation 
determined
under subparagraph (A) be less than the
excess (if any) of—
‘‘(I) 90 percent of the current li-
ability of the plan (including the ex-
pected increase in current liability due
to benefits accruing during the plan
year), over
‘‘(II) the value of the plan’s as-
sets determined under paragraph (2).
‘‘(ii) CURRENT LIABILITY; ASSETS.—
For purposes of clause (i)—
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‘‘(I) the term ‘current liability’
has the meaning given such term by
subsection (d)(7) (without regard to
subparagraph (D) thereof), and
‘‘(II) assets shall not be reduced
by any credit balance in the funding
standard account.’’
(C) Subparagraph (B) of section 302(c)(7)
of such Act is amended to read as follows:
‘‘(B) CURRENT LIABILITY.—For purposes
of subparagraph (D) and subclause (I) of sub-
paragraph (A)(i), the term ‘current liability’
has the meaning given such term by subsection
(d)(7) (without regard to subparagraphs (C)
and (D) thereof) and using the rate of interest
used under subsection (b)(5)(B).’’
(11) DEFINITION
OF
CONTRIBUTING
SPON-
SOR.—Paragraph (13) of section 4001(a) of such
Act (29 U.S.C. 1301(a)(13)) is amended by striking
‘‘means a person—’’ and all that follows and insert-
ing 
‘‘means 
a 
person 
described 
in 
section
302(c)(11)(A) of this Act (without regard to section
302(c)(11)(B) of this Act) or section 412(c)(11)(A)
of the Internal Revenue Code of 1986 (without re-
gard to section 412(c)(11)(B) of such Code).’’
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(b) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to plan years beginning after December
31, 1994.
(2) CONTRIBUTING SPONSOR.—The amendment
made by subsection (a)(11) shall be effective as if
included in the Pension Protection Act.
SEC. 762. LIMITATION ON CHANGES IN CURRENT LIABIL-
ITY ASSUMPTIONS.
(a) IN GENERAL.—Paragraph (5) of section 302(c)
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1082(c)(5)) is amended—
(1) by striking ‘‘If the funding method’’ and in-
serting the following:
‘‘(A) IN GENERAL.—If the funding meth-
od’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) APPROVAL REQUIRED FOR CERTAIN
CHANGES
IN
ASSUMPTIONS
BY
CERTAIN
SIN-
GLE-EMPLOYER
PLANS
SUBJECT
TO
ADDI-
TIONAL FUNDING REQUIREMENT.—
‘‘(i) IN GENERAL.—No actuarial as-
sumption (other than the assumptions de-
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scribed in subsection (d)(7)(C)) used to de-
termine the current liability for a plan to
which this subparagraph applies may be
changed without the approval of the Sec-
retary of the Treasury.
‘‘(ii) PLANS
TO
WHICH
SUBPARA-
GRAPH APPLIES.—This subparagraph shall
apply to a plan only if—
‘‘(I) the plan is a defined benefit
plan (other than a multiemployer
plan) to which title IV applies;
‘‘(II) the aggregate unfunded
vested benefits as of the close of the
preceding plan year (as determined
under section 4006(a)(3)(E)(iii)) of
such plan and all other plans main-
tained by the contributing sponsors
(as defined in section 4001(a)(13))
and members of such sponsors’ con-
trolled groups (as defined in section
4001(a)(14)) which are covered by
title IV (disregarding plans with no
unfunded 
vested 
benefits) 
exceed
$50,000,000; and
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‘‘(III) the change in assumptions
(determined after taking into account
any changes in interest rate and mor-
tality table) results in a decrease in
the unfunded current liability of the
plan for the current plan year that ex-
ceeds $50,000,000, or that exceeds
$5,000,000 and that is 5 percent or
more of the current liability of the
plan before such change.’’
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendment made by
this section shall apply to changes in assumptions
for plan years beginning after October 28, 1993.
(2) CERTAIN CHANGES CEASE TO BE EFFEC-
TIVE.—In the case of changes in assumptions for
plan years beginning after December 31, 1992, and
on or before October 28, 1993, such changes shall
cease to be effective for plan years beginning after
December 31, 1994, if—
(A) such change would have required the
approval of the Secretary of the Treasury had
such amendment applied to such change, and
(B) such change is not so approved.
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SEC. 763. ANTICIPATION OF BARGAINED BENEFIT IN-
CREASES.
(a) IN GENERAL.—Section 302(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1082(c)) is amended by adding at the end the following
new paragraph:
‘‘(12) ANTICIPATION
OF
BENEFIT
INCREASES
EFFECTIVE IN THE FUTURE.—In determining pro-
jected benefits, the funding method of a collectively
bargained plan described in section 413(a) of the In-
ternal Revenue Code of 1986 (other than a multiem-
ployer plan) shall anticipate benefit increases sched-
uled to take effect during the term of the collective
bargaining agreement applicable to the plan.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to plan years beginning after De-
cember 31, 1994 with respect to collective bargaining
agreements in effect on or after January 1, 1995.
SEC. 764. MODIFICATION OF QUARTERLY CONTRIBUTION
REQUIREMENT.
(a) IN GENERAL.—Paragraph (1) of section 302(e)
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1082(e)) is amended—
(1) by inserting ‘‘which has a funded current li-
ability percentage (as defined in subsection (d)(8))
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for the preceding plan year of less than 100 per-
cent’’ before ‘‘fails’’, and
(2) by striking ‘‘any plan year’’ and inserting
‘‘the plan year’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to plan years beginning after the
date of enactment of this Act.
Subpart C—Other Funding Provisions
SEC. 766. PROHIBITION ON BENEFIT INCREASES WHERE
PLAN SPONSOR IS IN BANKRUPTCY.
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—Section 204 of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1054) is amended by redesignating subsection (i)
as (j) and inserting after subsection (h) the following new
subsection:
‘‘(i)(1) In the case of a plan described in paragraph
(3) which is maintained by an employer that is a debtor
in a case under title 11, United States Code, or similar
Federal or State law, no amendment of the plan which
increases the liabilities of the plan by reason of—
‘‘(A) any increase in benefits,
‘‘(B) any change in the accrual of benefits, or
‘‘(C) any change in the rate at which benefits
become nonforfeitable under the plan,
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with respect to employees of the debtor, shall be effective
prior to the effective date of such employer’s plan of reor-
ganization.
‘‘(2) Paragraph (1) shall not apply to any plan
amendment that—
‘‘(A) the Secretary of the Treasury determines
to be reasonable and that provides for only de
minimis increases in the liabilities of the plan with
respect to employees of the debtor,
‘‘(B) only repeals an amendment described in
section 302(c)(8),
‘‘(C) is required as a condition of qualification
under part I of subchapter D of chapter 1 of the In-
ternal Revenue Code of 1986, or
‘‘(D) was adopted prior to, or pursuant to a col-
lective bargaining agreement entered into prior to,
the date on which the employer became a debtor in
a case under title 11, United States Code, or similar
Federal or State law.
‘‘(3) This subsection shall apply only to plans (other
than multiemployer plans) covered under section 4021 of
this Act for which the funded current liability percentage
(within the meaning of section 302(d)(8) of this Act) is
less than 100 percent after taking into account the effect
of the amendment.
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‘‘(4) For purposes of this subsection, the term ‘em-
ployer’ has the meaning set forth in section 302(c)(11)(A),
without regard to section 302(c)(11)(B).’’
(b) AMENDMENT TO INTERNAL REVENUE CODE OF
1986.—Section 401(a), as amended by section 751 of this
Act, is further amended by adding at the end the following
new paragraph:
‘‘(33) PROHIBITION
ON
BENEFIT
INCREASES
WHILE SPONSOR IS IN BANKRUPTCY.—
‘‘(A) IN GENERAL.—A trust which is part
of a plan to which this paragraph applies shall
not constitute a qualified trust under this sec-
tion if an amendment to such plan is adopted
while the employer is a debtor in a case under
title 11, United States Code, or similar Federal
or State law, if such amendment increases li-
abilities of the plan by reason of—
‘‘(i) any increase in benefits,
‘‘(ii) any change in the accrual of ben-
efits, or
‘‘(iii) any change in the rate at which
benefits become nonforfeitable under the
plan,
with respect to employees of the debtor, and
such amendment is effective prior to the effec-
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tive date of such employer’s plan of reorganiza-
tion.
‘‘(B) EXCEPTIONS.—This paragraph shall
not apply to any plan amendment if—
‘‘(i) the plan, were such amendment
to take effect, would have a funded current
liability percentage (as defined in section
412(l)(8)) of 100 percent or more,
‘‘(ii) the Secretary determines that
such amendment is reasonable and pro-
vides for only de minimis increases in the
liabilities of the plan with respect to em-
ployees of the debtor,
‘‘(iii) such amendment only repeals an
amendment 
described 
in 
subsection
412(c)(8), or
‘‘(iv) such amendment is required as a
condition of qualification under this part.
‘‘(C) PLANS TO WHICH THIS PARAGRAPH
APPLIES.—This paragraph shall apply only to
plans (other than multiemployer plans) covered
under section 4021 of the Employee Retirement
Income Security Act of 1974.
‘‘(D) EMPLOYER.—For purposes of this
paragraph, the term ‘employer’ means the em-
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ployer referred to in section 412(c)(11) (with-
out regard to subparagraph (B) thereof).’’
(c) EFFECTIVE DATE OF PLAN AMENDMENT.—Sec-
tion 4022 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1322) is amended by inserting
at the end the following new subsection:
‘‘(f) For purposes of this section, the effective date
of a plan amendment described in section 204(i)(1) shall
be the effective date of the plan of reorganization of the
employer described in section 204(i)(1) or, if later, the ef-
fective date stated in such amendment.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan amendments adopted on
or after the date of enactment of this Act.
SEC. 767. SINGLE SUM DISTRIBUTIONS.
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF
1986 RELATING TO MINIMUM BENEFITS.—
(1) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON MANDATORY DIS-
TRIBUTIONS.—Subparagraph 
(B) 
of 
section
411(a)(11) is amended to read as follows:
‘‘(B) 
DETERMINATION
OF
PRESENT
VALUE.—For purposes of subparagraph (A),
the present value shall be calculated in accord-
ance with section 417(e)(3).’’
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(2) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON CASH-OUTS.—Para-
graph (3) of section 417(e) is amended to read as
follows:
‘‘(3) DETERMINATION OF PRESENT VALUE.—
‘‘(A) IN GENERAL.—
‘‘(i) PRESENT
VALUE.—Except as
provided in subparagraph (B), for pur-
poses of paragraphs (1) and (2), the
present value shall not be less than the
present value calculated by using the appli-
cable mortality table and the applicable in-
terest rate.
‘‘(ii) DEFINITIONS.—For purposes of
clause (i)—
‘‘(I) 
APPLICABLE
MORTALITY
TABLE.—The term ‘applicable mortal-
ity table’ means the table prescribed
by the Secretary. Such table shall be
based on the prevailing commis-
sioners’ standard table (described in
section 807(d)(5)(A)) used to deter-
mine reserves for group annuity con-
tracts issued on the date as of which
present value is being determined
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(without regard to any other subpara-
graph of section 807(d)(5)).
‘‘(II) 
APPLICABLE
INTEREST
RATE.—The term ‘applicable interest
rate’ means the annual rate of inter-
est on 30-year Treasury securities for
the month before the date of distribu-
tion or such other time as the Sec-
retary may by regulations prescribe.
‘‘(B) EXCEPTION.—In the case of a dis-
tribution from a plan that was adopted and in
effect before the date of the enactment of the
Retirement Protection Act of 1994, the present
value of any distribution made before the ear-
lier of—
‘‘(i) the later of the date a plan
amendment applying subparagraph (A) is
adopted or made effective, or
‘‘(ii) the first day of the first plan
year beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs
(1) and (2), using the interest rate determined
under the regulations of the Pension Benefit
Guaranty Corporation for determining the
present value of a lump sum distribution on
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plan termination that were in effect on Septem-
ber 1, 1993, and using the provisions of the
plan as in effect on the day before such date of
enactment; but only if such provisions of the
plan met the requirements of section 417(e)(3)
as in effect on the day before such date of en-
actment.’’
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF
1986 RELATING
TO MAXIMUM BENEFITS.—Subpara-
graph (E) of section 415(b)(2) is amended—
(1) by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively,
(2) by striking clause (i) and inserting the fol-
lowing new clauses:
‘‘(i) Except as provided in clause (ii),
for purposes of adjusting any benefit or
limitation under subparagraph (B) or (C),
the interest rate assumption shall not be
less than the greater of 5 percent or the
rate specified in the plan.
‘‘(ii) For purposes of adjusting the
benefit or limitation of any form of benefit
subject to section 417(e)(3), the applicable
interest 
rate 
(as 
defined 
in 
section
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417(e)(3)) shall be substituted for ‘5 per-
cent’ in clause (i).’’, and
(3) by adding at the end the following new
clause:
‘‘(v) For purposes of adjusting any
benefit or limitation under subparagraph
(B), (C), or (D), the mortality table used
shall be the table prescribed by the Sec-
retary. Such table shall be based on the
prevailing commissioners’ standard table
(described in section 807(d)(5)(A)) used to
determine reserves for group annuity con-
tracts issued on the date the adjustment is
being made (without regard to any other
subparagraph of section 807(d)(5)).’’
(c) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—
(1) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON MANDATORY DIS-
TRIBUTIONS.—Section 203(e)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1053(e)(2)) is amended to read as follows:
‘‘(2) For purposes of paragraph (1), the present value
shall be calculated in accordance with section 205(g)(3).’’
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(2) DETERMINATION OF PRESENT VALUE FOR
PURPOSES OF RESTRICTIONS ON CASH-OUTS.—Sec-
tion 205(g)(3) of such Act (29 U.S.C. 1055(g)(3))
is amended to read as follows:
‘‘(3) DETERMINATION OF PRESENT VALUE.—
‘‘(A) IN GENERAL.—
‘‘(i) PRESENT
VALUE.—Except as
provided in subparagraph (B), for pur-
poses of paragraphs (1) and (2), the
present value shall not be less than the
present value calculated by using the appli-
cable mortality table and the applicable in-
terest rate.
‘‘(ii) DEFINITIONS.—For purposes of
clause (i)—
‘‘(I) 
APPLICABLE
MORTALITY
TABLE.—The term ‘applicable mortal-
ity table’ means the table prescribed
by the Secretary of the Treasury.
Such table shall be based on the pre-
vailing commissioners’ standard table
(described in section 807(d)(5)(A) of
the Internal Revenue Code of 1986)
used to determine reserves for group
annuity contracts issued on the date
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as of which present value is being de-
termined (without regard to any other
subparagraph of section 807(d)(5) of
such Code).
‘‘(II) 
APPLICABLE
INTEREST
RATE.—The term ‘applicable interest
rate’ means the annual rate of inter-
est on 30-year Treasury securities for
the month before the date of distribu-
tion or such other time as the Sec-
retary of the Treasury may by regula-
tions prescribe.
‘‘(B) EXCEPTION.—In the case of a dis-
tribution from a plan that was adopted and in
effect prior to the date of the enactment of the
Retirement Protection Act of 1994, the present
value of any distribution made before the ear-
lier of—
‘‘(i) the later of when a plan amend-
ment applying subparagraph (A) is adopt-
ed or made effective, or
‘‘(ii) the first day of the first plan
year beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs
(1) and (2), using the interest rate determined
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under the regulations of the Pension Benefit
Guaranty Corporation for determining the
present value of a lump sum distribution on
plan termination that were in effect on Septem-
ber 1, 1993, and using the provisions of the
plan as in effect on the day before such date of
enactment; but only if such provisions of the
plan met the requirements of section 205(g)(3)
as in effect on the day before such date of
enactment.’’
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to plan years and limitation
years beginning after December 31, 1994; except
that an employer may elect to treat the amendments
made by this section as being effective on or after
the date of the enactment of this Act.
(2) NO REDUCTION IN ACCRUED BENEFITS.—A
participant’s accrued benefit shall not be considered
to be reduced in violation of section 411(d)(6) of the
Internal Revenue Code of 1986 or section 204(g) of
the Employee Retirement Income Security Act of
1974 merely because (A) the benefit is determined
in accordance with section 417(e)(3)(A) of such
Code, as amended by this Act, or section 205(g)(3)
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of the Employee Retirement Income Security Act of
1974, as amended by this Act, or (B) the plan ap-
plies section 415(b)(2)(E) of such Code, as amended
by this Act.
(3) SECTION 415.—
(A) NO
REDUCTION
REQUIRED.—An ac-
crued benefit shall not be required to be re-
duced below the accrued benefit as of the last
day of the last plan year beginning before Jan-
uary 1, 1995, merely because of the amend-
ments made by subsection (b).
(B) TIMING
OF
PLAN
AMENDMENT.—A
plan that operates in accordance with the
amendments made by subsection (b) shall not
be treated as failing to satisfy section 401(a) of
the Internal Revenue Code of 1986 or as not
being operated in accordance with the provi-
sions of the plan until such date as the Sec-
retary of the Treasury provides merely because
the plan has not been amended to include the
amendments made by subsection (b).
SEC. 768. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM
FUNDING CONTRIBUTIONS.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
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(1) CLARIFICATION OF APPLICABILITY OF PRO-
VISION.—Paragraph (2) of section 412(n) is amend-
ed by adding at the end the following new sentence:
‘‘This subsection shall not apply to any plan to
which section 4021 of the Employee Retirement In-
come Security Act of 1974 does not apply (as such
section is in effect on the date of the enactment of
the Retirement Protection Act of 1994).’’.
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph
(3) of section 412(n) is amended to read as follows:
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to
the aggregate unpaid balance of required install-
ments and other payments required under this sec-
tion (including interest)—
‘‘(A) for plan years beginning after 1987,
and
‘‘(B) for which payment has not been
made before the due date.’’
(3) 
REPEAL
OF
60-DAY
DELAY.—Section
412(n)(4)(B) is amended by striking ‘‘60th day fol-
lowing the’’.
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—
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(1) CLARIFICATION OF APPLICABILITY OF PRO-
VISION.—Section 302(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C.
1082(f)(1)) is amended by striking ‘‘to which this
section applies’’ and inserting ‘‘covered under sec-
tion 4021 of this Act’’.
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph
(3) of section 302(f) of such Act is amended to read
as follows:
‘‘(3) AMOUNT OF LIEN.—For purposes of para-
graph (1), the amount of the lien shall be equal to
the aggregate unpaid balance of required install-
ments and other payments required under this sec-
tion (including interest)—
‘‘(A) for plan years beginning after 1987,
and
‘‘(B) for which payment has not been
made before the due date.’’
(3) 
REPEAL
OF
60-DAY
DELAY.—Section
302(f)(4)(B) of such Act is amended by striking
‘‘60th day following the’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective for installments and other
payments required under section 412 of the Internal Reve-
nue Code of 1986 or under part 3 of subtitle B of the
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Employee Retirement Income Security Act of 1974 that
become due on or after the date of enactment.
SEC. 769. SPECIAL FUNDING RULES FOR CERTAIN PLANS.
(a) FUNDING RULES NOT TO APPLY TO CERTAIN
PLANS.—Any changes made by this Act to section 412
of the Internal Revenue Code of 1986 or to part 3 of sub-
title B of title I of the Employee Retirement Income Secu-
rity Act of 1974 shall not apply to—
(1) a plan which is, on the date of enactment
of this Act, subject to a restoration payment sched-
ule order issued by the Pension Benefit Guaranty
Corporation that meets the requirements of section
1.412(c)(1)–3 of the Treasury Regulations, or
(2) a plan established by an affected air carrier
(as defined under section 4001(a)(14)(C)(ii)(I) of
such Act) and assumed by a new plan sponsor pur-
suant to the terms of a written agreement with the
Pension Benefit Guaranty Corporation dated Janu-
ary 5, 1993, and approved by the United States
Bankruptcy Court for the District of Delaware on
December 30, 1992.
(b) CHANGE IN ACTUARIAL METHOD.—Any amorti-
zation installments for bases established under section
412(b) of the Internal Revenue Code of 1986 and section
302(b) of the Employee Retirement Income Security Act
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of 1974 for plan years beginning after December 31,
1987, and before January 1, 1993, by reason of
nonelective changes under the frozen entry age actuarial
cost method shall not be included in the calculation of off-
sets under section 412(l)(1)(A)(ii) of such Code and sec-
tion 302(d)(1)(A)(ii) of such Act for the 1st 5 plan years
beginning after December 31, 1994.
PART II—AMENDMENTS RELATED TO TITLE IV
OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974
SEC. 771. REPORTABLE EVENTS.
(a) RESPONSIBILITY FOR REPORTABLE EVENTS RE-
PORTING.—Section 4043(a) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1343(a)) is
amended—
(1) in the first sentence, by inserting ‘‘or the
contributing sponsor’’ before ‘‘knows or has reason
to know’’;
(2) in the first sentence, by inserting ‘‘, unless
a notice otherwise required under this subsection has
already been provided with respect to such event’’
before the period at the end; and
(3) by striking the last sentence.
(b) NOTIFICATION THAT EVENT IS ABOUT TO
OCCUR.—Section 4043 of such Act is amended by redesig-
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nating subsections (b), (c), and (d) as (c), (d), and (e),
respectively, and by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b)(1) The requirements of this subsection shall be
applicable to a contributing sponsor if, as of the close of
the preceding plan year—
‘‘(A) the aggregate unfunded vested benefits (as
determined under section 4006(a)(3)(E)(iii)) of
plans subject to this title which are maintained by
such sponsor and members of such sponsor’s con-
trolled groups (disregarding plans with no unfunded
vested benefits) exceed $50,000,000, and
‘‘(B) the funded vested benefit percentage for
such plans is less than 90 percent.
For purposes of subparagraph (B), the funded vested ben-
efit percentage means the percentage which the aggregate
value of the assets of such plans bears to the aggregate
vested benefits of such plans (determined in accordance
with section 4006(a)(3)(E)(iii)).
‘‘(2) This subsection shall not apply to an event if
the contributing sponsor, or the member of the contribut-
ing sponsor’s controlled group to which the event relates,
is—
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‘‘(A) a person subject to the reporting require-
ments of section 13 or 15(d) of the Securities Ex-
change Act of 1934, or
‘‘(B) a subsidiary (as defined for purposes of
such Act) of a person subject to such reporting re-
quirements.
‘‘(3) No later than 30 days prior to the effective date
of an event described in paragraph (9), (10), (11), (12),
or (13) of subsection (c), a contributing sponsor to which
the requirements of this subsection apply shall notify the
corporation that the event is about to occur.
‘‘(4) The corporation may waive the requirement of
this subsection with respect to any or all reportable events
with respect to any contributing sponsor.’’
(c) NEW REPORTABLE EVENTS.—Subsection (c) of
section 4043 of such Act (as redesignated by subsection
(b)) is amended—
(1) by striking the ‘‘or’’ at the end of para-
graph (8);
(2) by striking paragraph (9); and
(3) by inserting after paragraph (8) the follow-
ing new paragraphs:
‘‘(9) when, as a result of an event, a person
ceases to be a member of the controlled group;
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‘‘(10) when a contributing sponsor or a member
of 
a 
contributing 
sponsor’s 
controlled 
group
liquidates in a case under title 11, United States
Code, or under any similar Federal law or law of a
State or political subdivision of a State;
‘‘(11) when a contributing sponsor or a member
of a contributing sponsor’s controlled group declares
an extraordinary dividend (as defined in section
1059(c) of the Internal Revenue Code of 1986) or
redeems, in any 12-month period, an aggregate of
10 percent or more of the total combined voting
power of all classes of stock entitled to vote, or an
aggregate of 10 percent or more of the total value
of shares of all classes of stock, of a contributing
sponsor and all members of its controlled group;
‘‘(12) when, in any 12-month period, an aggre-
gate of 3 percent or more of the benefit liabilities of
a plan covered by this title and maintained by a con-
tributing sponsor or a member of its controlled
group are transferred to a person that is not a mem-
ber of the controlled group or to a plan or plans
maintained by a person or persons that are not such
a contributing sponsor or a member of its controlled
group; or
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‘‘(13) when any other event occurs that may be
indicative of a need to terminate the plan and that
is prescribed by the corporation in regulations.’’
(d) DISCLOSURE EXEMPTION.—Section 4043 of such
Act is amended by adding at the end the following new
subsection:
‘‘(f) Any information or documentary material sub-
mitted to the corporation pursuant to this section shall
be exempt from disclosure under section 552 of title 5,
United States Code, and no such information or documen-
tary material may be made public, except as may be rel-
evant to any administrative or judicial action or proceed-
ing. Nothing in this section is intended to prevent disclo-
sure to either body of Congress or to any duly authorized
committee or subcommittee of the Congress.’’
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 4043 of such Act,
and subsections (d) and (e) of such section 4043 (as
redesignated by subsection (b)), are each amended
by striking ‘‘subsection (b)’’ each place it appears
and inserting ‘‘subsection (c)’’.
(2) Section 4042(a)(3) of such Act is amended
by 
striking 
‘‘4043(b)(7)’’ 
and 
inserting
‘‘4043(c)(7)’’.
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(f) EFFECTIVE DATE.—The amendments made by
this section shall be effective for events occurring 60 days
or more after the date of enactment of this Act.
SEC. 772. CERTAIN INFORMATION REQUIRED TO BE FUR-
NISHED TO PBGC.
(a) GENERAL RULE.—Subtitle A of title IV of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1301 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMA-
TION.
‘‘(a) INFORMATION REQUIRED.—Each person de-
scribed in subsection (b) shall provide the corporation an-
nually, on or before a date specified by the corporation
in regulations, with—
‘‘(1) such records, documents, or other informa-
tion that the corporation specifies in regulations as
necessary to determine the liabilities and assets of
plans covered by this title; and
‘‘(2) copies of such person’s audited (or, if un-
available, unaudited) financial statements, and such
other financial information as the corporation may
prescribe in regulations.
‘‘(b) PERSONS REQUIRED TO PROVIDE INFORMA-
TION.—The persons covered by subsection (a) are each
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contributing sponsor, and each member of a contributing
sponsor’s controlled group, of a single-employer plan cov-
ered by this title, if—
‘‘(1) the aggregate unfunded vested benefits at
the end of the preceding plan year (as determined
under section 4006(a)(3)(E)(iii)) of plans main-
tained by the contributing sponsor and the members
of its controlled group exceed $50,000,000 (dis-
regarding plans with no unfunded vested benefits);
‘‘(2) the conditions for imposition of a lien de-
scribed in section 302(f)(1)(A) and (B) of this Act
or section 412(n)(1)(A) and (B) of the Internal Rev-
enue Code of 1986 have been met with respect to
any plan maintained by the contributing sponsor or
any member of its controlled group; or
‘‘(3) minimum funding waivers in excess of
$1,000,000 have been granted with respect to any
plan maintained by the contributing sponsor or any
member of its controlled group, and any portion
thereof is still outstanding.
‘‘(c) INFORMATION EXEMPT FROM DISCLOSURE RE-
QUIREMENTS.—Any information or documentary material
submitted to the corporation pursuant to this section shall
be exempt from disclosure under section 552 of title 5,
United States Code, and no such information or documen-
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tary material may be made public, except as may be rel-
evant to any administrative or judicial action or proceed-
ing. Nothing in this section is intended to prevent disclo-
sure to either body of Congress or to any duly authorized
committee or subcommittee of the Congress.’’
(b) CLERICAL AMENDMENT.—The table of contents
contained in section 1 of such Act is amended by inserting
after the item relating to section 4009 the following new
item:
‘‘Sec. 4010. Authority to require certain information.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective on the date of enactment of
this Act.
SEC. 773. ENFORCEMENT OF MINIMUM FUNDING REQUIRE-
MENTS.
(a) IN GENERAL.—Paragraph (1) of section 4003(e)
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1303(e)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘enforce’’; and
(2) by striking the period after ‘‘title’’ and in-
serting ‘‘, and (B) in the case of a plan which is cov-
ered under this title (other than a multiemployer
plan) and for which the conditions for imposition of
a lien described in section 302(f)(1)(A) and (B) of
this Act or section 412(n)(1)(A) and (B) of the In-
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ternal Revenue Code of 1986 have been met, section
302 of this Act and section 412 of such Code.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall be effective for installments and other
payments required under section 302 of the Employee Re-
tirement Income Security Act of 1974 or section 412 of
the Internal Revenue Code of 1986 that become due on
or after the date of the enactment of this Act.
SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM.
(a) PHASE-OUT
OF
VARIABLE
RATE
PREMIUM
CAP.—
(1) IN GENERAL.—Subparagraph (E) of section
4006(a)(3) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is
amended by striking clause (iv), and by redesignat-
ing clause (v) as clause (iv).
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—The amendments made
by this subsection shall be effective for plan
years beginning on or after July 1, 1994.
(B) TRANSITION
RULE.—In the case of
plan years beginning on or after July 1, 1994,
and before July 1, 1996, the additional pre-
mium payable with respect to any participant
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by reason of the amendments made by this sec-
tion shall not exceed the sum of—
(i) $53, and
(ii) the product derived by multiply-
ing—
(I) the excess (if any) of the
amount determined under clause (i) of
section 4006(a)(3)(E) of the Em-
ployee Retirement Income Security
Act of 1974, over $53, by
(II) the applicable percentage.
For purposes of this subparagraph, the applica-
ble percentage shall be the percentage specified
in the following table:
For the plan year beginning:
The appli-
cable per-
centage is:
on or after
but before
July 1, 1994 ...........................
July 1, 1995 ..........................
20 percent
July 1, 1995 ...........................
July 1, 1996 ..........................
60 percent
(b) INTEREST RATE AND ASSET VALUATION.—
(1) INTEREST RATE.—Subclause (II) of section
4006(a)(3)(E)(iii) of the Employee Retirement In-
come Security Act of 1974 is amended—
(A) by striking ‘‘80 percent’’ and inserting
‘‘the applicable percentage’’, and
(B) by adding at the end the following new
sentence: ‘‘For purposes of this subclause, the
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applicable percentage is 80 percent for plan
years beginning before July 1, 1997, 85 percent
for plan years beginning after June 30, 1997,
and before the 1st plan year to which the first
tables 
prescribed 
under 
section
302(d)(7)(C)(ii)(II) apply, and 100 percent for
such 1st plan year and subsequent plan years.’’
(2) ASSET VALUATION.—Clause (iii) of section
4006(a)(3)(E) of such Act is amended—
(A) 
by 
inserting 
‘‘or 
(III)’’ 
after
‘‘subclause (II)’’ in subclause (I), and
(B) by adding at the end the following new
subclause:
‘‘(III) In the case of any plan
year for which the applicable percent-
age under subclause (II) is 100 per-
cent, the value of the plan’s assets
used in determining unfunded current
liability under subclause (I) shall be
their fair market value.’’
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to plan years begin-
ning after the date of the enactment of this Act.
(c) TRANSITION RULE FOR CERTAIN REGULATED
PUBLIC UTILITIES.—In the case of a regulated public util-
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ity described in section 7701(a)(33)(A)(i) of the Internal
Revenue Code of 1986, the amendments made by this sec-
tion shall not apply to plan years beginning before the ear-
lier of—
(1) January 1, 1998, or
(2) the date the regulated public utility begins
to collect from utility customers rates that reflect
the costs incurred or projected to be incurred for ad-
ditional premiums under section 4006(a)(3)(E) of
the Employee Retirement Income Security Act of
1974 pursuant to final and nonappealable deter-
minations by all public utility commissions (or other
authorities having jurisdiction over the rates and
terms of service by the regulated public utility) that
the costs are just and reasonable and recoverable
from customers of the regulated public utility.
SEC. 775. DISCLOSURE TO PARTICIPANTS.
(a) PARTICIPANT NOTICE REQUIREMENT.—Subtitle
A of title IV of the Employee Retirement Income Security
Act of 1974 (as amended by section 772 of this Act) is
further amended by adding at the end the following new
section:
‘‘SEC. 4011. NOTICE TO PARTICIPANTS.
‘‘(a) IN GENERAL.—The plan administrator of a plan
subject to the additional premium under section
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4006(a)(3)(E) shall provide, in a form and manner and
at such time as prescribed in regulations of the corpora-
tion, notice to plan participants and beneficiaries of the
plan’s funding status and the limits on the corporation’s
guaranty should the plan terminate while underfunded.
Such notice shall be written in a manner so as to be under-
stood by the average plan participant.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to
any plan to which section 302(d) does not apply for the
plan year by reason of paragraph (9) thereof.’’
(b) CLERICAL AMENDMENT.—The table of contents
contained in section 1 of such Act is amended by inserting
after the item relating to section 4010 (as added by sec-
tion 772 of this Act) the following new item:
‘‘Sec. 4011. Notice to participants.’’
(c) EFFECTIVE DATE.—The amendment made by
this section shall be effective for plan years beginning after
the date of enactment of this Act.
SEC. 776. MISSING PARTICIPANTS.
(a) IN GENERAL.—Subtitle C of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1341 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 4050. MISSING PARTICIPANTS.
‘‘(a) GENERAL RULE.—
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‘‘(1) PAYMENT TO THE CORPORATION.—A plan
administrator satisfies section 4041(b)(3)(A) in the
case of a missing participant only if the plan admin-
istrator—
‘‘(A) transfers the participant’s designated
benefit to the corporation or purchases an irrev-
ocable commitment from an insurer in accord-
ance with clause (i) of section 4041(b)(3)(A),
and
‘‘(B) provides the corporation such infor-
mation and certifications with respect to such
designated benefits or irrevocable commitments
as the corporation shall specify.
‘‘(2) TREATMENT OF TRANSFERRED ASSETS.—
A transfer to the corporation under this section shall
be treated as a transfer of assets from a terminated
plan to the corporation as trustee, and shall be held
with assets of terminated plans for which the cor-
poration is trustee under section 4042, subject to
the rules set forth in that section.
‘‘(3) PAYMENT BY THE CORPORATION.—After a
missing participant whose designated benefit was
transferred to the corporation is located—
‘‘(A) in any case in which the plan could
have distributed the benefit of the missing par-
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ticipant in a single sum without participant or
spousal consent under section 205(g), the cor-
poration shall pay the participant or beneficiary
a single sum benefit equal to the designated
benefit paid the corporation plus interest as
specified by the corporation, and
‘‘(B) in any other case, the corporation
shall pay a benefit based on the designated ben-
efit and the assumptions prescribed by the cor-
poration at the time that the corporation re-
ceived the designated benefit.
The corporation shall make payments under sub-
paragraph (B) available in the same forms and at
the same times as a guaranteed benefit under sec-
tion 4022 would be available to be paid, except that
the corporation may make a benefit available in the
form of a single sum if the plan provided a single
sum benefit (other than a single sum described in
subsection (b)(2)(A)).
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) MISSING PARTICIPANT.—The term ‘miss-
ing participant’ means a participant or beneficiary
under a terminating plan whom the plan adminis-
trator cannot locate after a diligent search.
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‘‘(2) DESIGNATED BENEFIT.—The term ‘des-
ignated benefit’ means the single sum benefit the
participant would receive—
‘‘(A) under the plan’s assumptions, in the
case of a distribution that can be made without
participant or spousal consent under section
205(g);
‘‘(B) under the assumptions of the cor-
poration in effect on the date that the des-
ignated benefit is transferred to the corpora-
tion, in the case of a plan that does not pay any
single sums other than those described in sub-
paragraph (A); or
‘‘(C) under the assumptions of the cor-
poration or of the plan, whichever provides the
higher single sum, in the case of a plan that
pays a single sum other than those described in
subparagraph (A).
‘‘(c) REGULATORY AUTHORITY.—The corporation
shall prescribe such regulations as are necessary to carry
out the purposes of this section, including rules relating
to what will be considered a diligent search, the amount
payable to the corporation, and the amount to be paid by
the corporation.’’
(b) CONFORMING TITLE IV AMENDMENTS.—
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‘‘(f) 
MISSING
PARTICIPANTS
IN
TERMINATED
PLANS.—In the case of a plan covered by title IV, the
plan shall provide that, upon termination of the plan, ben-
efits of missing participants shall be treated in accordance
with section 4050.’’
(d) 
CONFORMING
INTERNAL
REVENUE
CODE
AMENDMENTS.—Section 401(a), as amended by section
766 of this Act, is further amended by inserting after
paragraph (33) the following new paragraph:
‘‘(34) BENEFITS OF MISSING PARTICIPANTS ON
PLAN TERMINATION.—In the case of a plan covered
by title IV of the Employee Retirement Income Se-
curity Act of 1974, a trust forming part of such
plan shall not be treated as failing to constitute a
qualified trust under this section merely because the
pension plan of which such trust is a part, upon its
termination, transfers benefits of missing partici-
pants to the Pension Benefit Guaranty Corporation
in accordance with section 4050 of such Act.’’
(e) EFFECTIVE DATE.—The provisions of this section
shall be effective with respect to distributions that occur
in plan years commencing after final regulations imple-
menting these provisions are prescribed by the Pension
Benefit Guaranty Corporation.
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SEC. 777. MODIFICATION OF MAXIMUM GUARANTEE FOR
DISABILITY BENEFITS.
(a) IN GENERAL.—Section 4022(b)(3) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1322(b)(3)) is amended by adding at the end the
following new sentences: ‘‘The maximum guaranteed
monthly benefit shall not be reduced solely on account of
the age of a participant in the case of a benefit payable
by reason of disability that occurred on or before the ter-
mination date, if the participant demonstrates to the satis-
faction of the corporation that the Social Security Admin-
istration has determined that the participant satisfies the
definition of disability under title II or XVI of the Social
Security Act, and the regulations thereunder. If a benefit
payable by reason of disability is converted to an early
or normal retirement benefit for reasons other than a
change in the health of the participant, such early or nor-
mal retirement benefit shall be treated as a continuation
of the benefit payable by reason of disability and this sub-
paragraph shall continue to apply.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for plan terminations under
section 4041(c) of the Employee Retirement Income Secu-
rity Act of 1974 with respect to which notices of intent
to terminate are provided under section 4041(a)(2) of
such Act, or under section 4042 of such Act with respect
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to which proceedings are instituted by the corporation, on
or after the date of enactment of this Act.
SEC. 778. PROCEDURES TO FACILITATE DISTRIBUTION OF
TERMINATION BENEFITS.
(a) REMEDIES
FOR NONCOMPLIANCE WITH RE-
QUIREMENTS FOR STANDARD TERMINATION.—
(1) NOTICE
OF
NONCOMPLIANCE.—Section
4041(b)(2)(C)(i) of the Employee Retirement In-
come 
Security 
Act 
of 
1974 
(29 
U.S.C.
1341(b)(2)(C)(i)) is amended—
(A) by striking subclause (I) and inserting
the following new subclause:
‘‘(I) it determines, based on the
notice sent under paragraph (2)(A) of
subsection (b), that there is reason to
believe that the plan is not sufficient
for benefit liabilities,’’;
(B) by striking the period at the end of
subclause (II) and inserting ‘‘, or’’; and
(C) by adding at the end the following new
subclause:
‘‘(III) it determines that any
other requirement of subparagraph
(A) or (B) of this paragraph or of
subsection (a)(2) has not been met,
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unless it further determines that the
issuance of such notice would be in-
consistent with the interests of par-
ticipants and beneficiaries.’’
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to any plan termi-
nation under section 4041(b) of the Employee Re-
tirement Income Security Act of 1974 with respect
to which the Pension Benefit Guaranty Corporation
has not, as of the date of enactment of this Act, is-
sued a notice of noncompliance that has become
final, or otherwise issued a final determination that
the plan termination is nullified.
(b) DISTRESS TERMINATION CRITERIA FOR BANK-
ING INSTITUTIONS.—
(1) CLARIFICATION OF DISTRESS CRITERION.—
Subclause (I) of section 4041(c)(2)(B)(i) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1341(c)(2)(B)(i)) is amended by inserting
after ‘‘under any similar’’ the following: ‘‘Federal
law or’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall be effective as if included in
the Single-Employer Pension Plan Amendments Act
of 1986.
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PART III—EFFECTIVE DATES
SEC. 781. EFFECTIVE DATES.
Except as otherwise provided in this subtitle, the
amendments made by this subtitle shall be effective on the
date of enactment of this Act.
TITLE VIII—PIONEER
PREFERENCES
SEC. 801. PIONEER PREFERENCES.
Section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j)) is amended by adding at the end the
following new paragraph:
‘‘(13) RECOVERY OF VALUE OF PUBLIC SPEC-
TRUM
IN
CONNECTION
WITH
PIONEER
PREF-
ERENCES.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (6)(G), the Commission shall not award
licenses pursuant to a preferential treatment
accorded by the Commission to persons who
make significant contributions to the develop-
ment of a new telecommunications service or
technology, except in accordance with the re-
quirements of this paragraph.
‘‘(B) RECOVERY OF VALUE.—The Commis-
sion shall recover for the public a portion of the
value of the public spectrum resource made
available to such person by requiring such per-
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son, as a condition for receipt of the license, to
agree to pay a sum determined by—
‘‘(i) identifying the winning bids for
the licenses that the Commission deter-
mines are most reasonably comparable in
terms of bandwidth, scope of service area,
usage restrictions, and other technical
characteristics to the license awarded to
such person, and excluding licenses that
the Commission determines are subject to
bidding anomalies due to the award of
preferential treatment;
‘‘(ii) dividing each such winning bid
by the population of its service area (here-
inafter referred to as the per capita bid
amount);
‘‘(iii) computing the average of the
per capita bid amounts for the licenses
identified under clause (i);
‘‘(iv) reducing such average amount
by 15 percent; and
‘‘(v) multiplying the amount deter-
mined under clause (iv) by the population
of the service area of the license obtained
by such person.
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‘‘(C) INSTALLMENTS
PERMITTED.—The
Commission shall require such person to pay
the sum required by subparagraph (B) in a
lump sum or in guaranteed installment pay-
ments, with or without royalty payments, over
a period of not more than 5 years.
‘‘(D) RULEMAKING
ON
PIONEER
PREF-
ERENCES.—Except with respect to pending ap-
plications described in clause (iv) of this sub-
paragraph, the Commission shall prescribe reg-
ulations specifying the procedures and criteria
by which the Commission will evaluate applica-
tions for preferential treatment in its licensing
processes (by precluding the filing of mutually
exclusive applications) for persons who make
significant contributions to the development of
a new service or to the development of new
technologies that substantially enhance an exist-
ing service. Such regulations shall—
‘‘(i) specify the procedures and cri-
teria by which the significance of such con-
tributions will be determined, after an op-
portunity for review and verification by ex-
perts in the radio sciences drawn from
among persons who are not employees of
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the Commission or by any applicant for
such preferential treatment;
‘‘(ii) include such other procedures as
may be necessary to prevent unjust enrich-
ment by ensuring that the value of any
such contribution justifies any reduction in
the amounts paid for comparable licenses
under this subsection;
‘‘(iii) be prescribed not later than 6
months after the date of enactment of this
paragraph;
‘‘(iv) not apply to applications that
have been accepted for filing on or before
September 1, 1994; and
‘‘(v) cease to be effective on the date
of the expiration of the Commission’s au-
thority under subparagraph (F).
‘‘(E) IMPLEMENTATION WITH RESPECT TO
PENDING
APPLICATIONS.—In 
applying 
this
paragraph to any broadband licenses in the per-
sonal communications service awarded pursuant
to the preferential treatment accorded by the
Federal Communications Commission in the
Third Report and Order in General Docket 90–
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314 (FCC 93–550, released February 3,
1994)—
‘‘(i) the Commission shall not recon-
sider the award of preferences in such
Third Report and Order, and the Commis-
sion shall not delay the grant of licenses
based on such awards more than 15 days
following the date of enactment of this
paragraph, and the award of such pref-
erences and licenses shall not be subject to
administrative or judicial review;
‘‘(ii) the Commission shall not alter
the bandwidth or service areas designated
for such licenses in such Third Report and
Order;
‘‘(iii) except as provided in clause (v),
the Commission shall use, as the most rea-
sonably comparable licenses for purposes of
subparagraph (B)(i), the broadband li-
censes in the personal communications
service for blocks A and B for the 20 larg-
est markets (ranked by population) in
which no applicant has obtained pref-
erential treatment;
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‘‘(iv) for purposes of subparagraph
(C), the Commission shall permit guaran-
teed installment payments over a period of
5 years, subject to—
‘‘(I) the payment only of interest
on unpaid balances during the first 2
years, commencing not later than 30
days after the award of the license
(including any preferential treatment
used in making such award) is final
and no longer subject to administra-
tive or judicial review, except that no
such payment shall be required prior
to the date of completion of the auc-
tion of the comparable licenses de-
scribed in clause (iii); and
‘‘(II) payment of the unpaid bal-
ance and interest thereon after the
end of such 2 years in accordance
with the regulations prescribed by the
Commission; and
‘‘(v) the Commission shall recover
with respect to broadband licenses in the
personal 
communications 
service 
an
amount under this paragraph that is equal
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HR 5110 RDS
to not less than $400,000,000, and if such
amount is less than $400,000,000, the
Commission shall recover an amount equal
to $400,000,000 by allocating such amount
among the holders of such licenses based
on the population of the license areas held
by each licensee.
The Commission shall not include in any
amounts required to be collected under clause
(v) the interest on unpaid balances required to
be collected under clause (iv).
‘‘(F) EXPIRATION.—The authority of the
Commission to provide preferential treatment in
licensing procedures (by precluding the filing of
mutually exclusive applications) to persons who
make significant contributions to the develop-
ment of a new service or to the development of
new technologies that substantially enhance an
existing service shall expire on September 30,
1998.
‘‘(G) EFFECTIVE DATE.—This paragraph
shall be effective on the date of its enactment
and apply to any licenses issued on or after Au-
gust 1, 1994, by the Federal Communications
Commission pursuant to any licensing proce-
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HR 5110 RDS
dure that provides preferential treatment (by
precluding the filing of mutually exclusive appli-
cations) to persons who make significant con-
tributions to the development of a new service
or to the development of new technologies that
substantially enhance an existing service.’’.
Passed the House of Representatives November 29,
1994.
Attest:
DONNALD K. ANDERSON
Clerk.