109TH CONGRESS 
1ST SESSION 
H. R. 2830
AN ACT 
To amend the Employee Retirement Income Secu-
rity Act of 1974 and the Internal Revenue Code 
of 1986 to reform the pension funding rules, and 
for other purposes.
109TH CONGRESS 
1ST SESSION H. R. 2830
AN ACT 
To amend the Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 to 
reform the pension funding rules, 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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Pension Protection Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title and table of contents. 
TITLE I—REFORM OF FUNDING RULES FOR SINGLE-EMPLOYER 
DEFINED BENEFIT PENSION PLANS 
Subtitle A—Amendments to Employee Retirement Income Security Act of 
1974
Sec. 101. Minimum funding standards. 
Sec. 102. Funding rules for single-employer defined benefit pension plans. 
Sec. 103. Benefit limitations under single-employer plans. 
Sec. 104. Technical and conforming amendments. 
Subtitle B—Amendments to Internal Revenue Code of 1986
Sec. 111. Minimum funding standards. 
Sec. 112. Funding rules for single-employer defined benefit pension plans. 
Sec. 113. Benefit limitations under single-employer plans. 
Sec. 114. Technical and conforming amendments. 
Subtitle C—Other Provisions 
Sec. 121. Modification of transition rule to pension funding requirements. 
Sec. 122. Treatment of nonqualified deferred compensation plans when em-
ployer defined benefit plan in at-risk status. 
TITLE II—FUNDING RULES FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS 
Subtitle A—Amendments to Employee Retirement Income Security Act of 
1974
Sec. 201. Funding rules for multiemployer defined benefit plans. 
Sec. 202. Additional funding rules for multiemployer plans in endangered or 
critical status. 
Sec. 203. Measures to forestall insolvency of multiemployer plans. 
Sec. 204. Withdrawal liability reforms. 
Sec. 205. Removal of restrictions with respect to procedures applicable to dis-
putes involving withdrawal liability. 
Subtitle B—Amendments to Internal Revenue Code of 1986
Sec. 211. Funding rules for multiemployer defined benefit plans. 
Sec. 212. Additional funding rules for multiemployer plans in endangered or 
critical status. 
Sec. 213. Measures to forestall insolvency of multiemployer plans.
TITLE III—OTHER PROVISIONS 
Sec. 301. Interest rate for 2006 funding requirements. 
Sec. 302. Interest rate assumption for determination of lump sum distributions. 
Sec. 303. Interest rate assumption for applying benefit limitations to lump sum 
distributions. 
Sec. 304. Distributions during working retirement. 
Sec. 305. Other amendments relating to prohibited transactions. 
Sec. 306. Correction period for certain transactions involving securities and 
commodities. 
Sec. 307. Recovery by reimbursement or subrogation with respect to provided 
benefits. 
Sec. 308. Exercise of control over plan assets in connection with qualified 
changes in investment options. 
Sec. 309. Clarification of fiduciary rules. 
Sec. 310. Government Accountability Office pension funding report. 
TITLE IV—IMPROVEMENTS IN PBGC GUARANTEE PROVISIONS 
Sec. 401. Increases in PBGC premiums. 
TITLE V—DISCLOSURE 
Sec. 501. Defined benefit plan funding notices. 
Sec. 502. Additional disclosure requirements. 
Sec. 503. Section 4010 filings with the PBGC. 
TITLE VI—INVESTMENT ADVICE 
Sec. 601. Amendments to Employee Retirement Income Security Act of 1974 
providing prohibited transaction exemption for provision of in-
vestment advice. 
Sec. 602. Amendments to Internal Revenue Code of 1986 providing prohibited 
transaction exemption for provision of investment advice. 
TITLE VII—BENEFIT ACCRUAL STANDARDS 
Sec. 701. Benefit accrual standards. 
TITLE VIII—DEDUCTION LIMITATIONS 
Sec. 801. Increase in deduction limits. 
Sec. 802. Updating deduction rules for combination of plans. 
TITLE IX—ENHANCED RETIREMENTS SAVINGS AND DEFINED 
CONTRIBUTION PLANS 
Sec. 901. Pensions and individual retirement arrangement provisions of Eco-
nomic Growth and Tax Relief Reconciliation Act of 2001 made 
permanent. 
Sec. 902. Saver’s credit. 
Sec. 903. Increasing participation through automatic contribution arrange-
ments. 
Sec. 904. Penalty-free withdrawals from retirement plans for individuals called 
to active duty for at least 179 days. 
Sec. 905. Waiver of 10 percent early withdrawal penalty tax on certain dis-
tributions of pension plans for public safety employees.
Sec. 906. Combat zone compensation taken into account for purposes of deter-
mining limitation and deductibility of contributions to indi-
vidual retirement plans. 
Sec. 907. Direct payment of tax refunds to individual retirement plans. 
Sec. 908. IRA eligibility for the disabled. 
Sec. 909. Allow rollovers by nonspouse beneficiaries of certain retirement plan 
distributions. 
TITLE X—PROVISIONS TO ENHANCE HEALTH CARE 
AFFORDABILITY 
Sec. 1001. Treatment of annuity and life insurance contracts with a long-term 
care insurance feature. 
Sec. 1002. Disposition of unused health and dependent care benefits in cafe-
teria plans and flexible spending arrangements. 
Sec. 1003. Distributions from governmental retirement plans for health and 
long-term care insurance for public safety officers. 
TITLE XI—GENERAL PROVISIONS 
Sec. 1101. Provisions relating to plan amendments.
TITLE I—REFORM OF FUNDING 
RULES 
FOR 
SINGLE-EM-
PLOYER 
DEFINED 
BENEFIT 
PENSION PLANS 
Subtitle A—Amendments to Em-
ployee Retirement Income Secu-
rity Act of 1974
SEC. 101. MINIMUM FUNDING STANDARDS. 
(a) REPEAL OF EXISTING FUNDING RULES.—Sec-
tions 302 through 308 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1082 through 
1086) are repealed. 
(b) NEW MINIMUM FUNDING STANDARDS.—Part 3 
of subtitle B of title I of such Act (as amended by sub-
section (a)) is amended further by inserting after section 
301 the following new section:
‘‘MINIMUM FUNDING STANDARDS 
‘‘SEC. 302. (a) REQUIREMENT TO MEET MINIMUM 
FUNDING STANDARD.—
‘‘(1) IN GENERAL.—A plan to which this part 
applies shall satisfy the minimum funding standard 
applicable to the plan for any plan year. 
‘‘(2) MINIMUM FUNDING STANDARD.—For pur-
poses of paragraph (1), a plan shall be treated as 
satisfying the minimum funding standard for a plan 
year if—
‘‘(A) in the case of a defined benefit plan 
which is a single-employer plan, the employer 
makes contributions to or under the plan for 
the plan year which, in the aggregate, are not 
less than the minimum required contribution 
determined under section 303 for the plan for 
the plan year, 
‘‘(B) in the case of a money purchase plan 
which is a single-employer plan, the employer 
makes contributions to or under the plan for 
the plan year which are required under the 
terms of the plan, and 
‘‘(C) in the case of a multiemployer plan, 
the employers make contributions to or under 
the plan for any plan year which, in the aggre-
gate, are sufficient to ensure that the plan does 
not have an accumulated funding deficiency 
under section 304 as of the end of the plan 
year. 
‘‘(b) LIABILITY FOR CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of any contribution required 
by this section (including any required installments 
under paragraphs (3) and (4) of section 303(j)) 
shall be paid by the employer responsible for making 
contributions to or under the plan. 
‘‘(2) JOINT
AND
SEVERAL
LIABILITY
WHERE 
EMPLOYER MEMBER OF CONTROLLED GROUP.—In 
the case of a single-employer plan, if the employer 
referred to in paragraph (1) is a member of a con-
trolled group, each member of such group shall be 
jointly and severally liable for payment of such con-
tributions. 
‘‘(c) VARIANCE FROM MINIMUM FUNDING STAND-
ARDS.—
‘‘(1) WAIVER
IN
CASE
OF
BUSINESS
HARD-
SHIP.—
‘‘(A) IN GENERAL.—If—
‘‘(i) an employer is (or in the case of 
a multiemployer plan, 10 percent or more
of the number of employers contributing to 
or under the plan is) unable to satisfy the 
minimum funding standard for a plan year 
without temporary substantial business 
hardship (substantial business hardship in 
the case of a multiemployer plan), and 
‘‘(ii) application of the standard would 
be adverse to the interests of plan partici-
pants in the aggregate, 
the Secretary of the Treasury may, subject to 
subparagraph (C), waive the requirements of 
subsection (a) for such year with respect to all 
or any portion of the minimum funding stand-
ard. The Secretary of the Treasury shall not 
waive the minimum funding standard with re-
spect to a plan for more than 3 of any 15 (5 
of any 15 in the case of a multiemployer plan) 
consecutive plan years. 
‘‘(B) EFFECTS OF WAIVER.—If a waiver is 
granted under subparagraph (A) for any plan 
year—
‘‘(i) in the case of a single-employer 
plan, the minimum required contribution 
under section 303 for the plan year shall 
be reduced by the amount of the waived
funding deficiency and such amount shall 
be amortized as required under section 
303(e), and 
‘‘(ii) in the case of a multiemployer 
plan, the funding standard account shall 
be credited under section 304(b)(3)(C) 
with the amount of the waived funding de-
ficiency and such amount shall be amor-
tized 
as 
required 
under 
section 
304(b)(2)(C). 
‘‘(C) WAIVER
OF
AMORTIZED
PORTION 
NOT ALLOWED.—The Secretary of the Treasury 
may not waive under subparagraph (A) any 
portion of the minimum funding standard 
under subsection (a) for a plan year which is 
attributable to any waived funding deficiency 
for any preceding plan year. 
‘‘(2) DETERMINATION
OF
BUSINESS
HARD-
SHIP.—For purposes of this subsection, the factors 
taken into account in determining temporary sub-
stantial business hardship (substantial business 
hardship in the case of a multiemployer plan) shall 
include (but shall not be limited to) whether or 
not—
‘‘(A) the employer is operating at an eco-
nomic loss, 
‘‘(B) there is substantial unemployment or 
underemployment in the trade or business and 
in the industry concerned, 
‘‘(C) the sales and profits of the industry 
concerned are depressed or declining, and 
‘‘(D) it is reasonable to expect that the 
plan will be continued only if the waiver is 
granted. 
‘‘(3) WAIVED FUNDING DEFICIENCY.—For pur-
poses of this part, the term ‘waived funding defi-
ciency’ means the portion of the minimum funding 
standard under subsection (a) (determined without 
regard to the waiver) for a plan year waived by the 
Secretary of the Treasury and not satisfied by em-
ployer contributions. 
‘‘(4) SECURITY FOR WAIVERS FOR SINGLE-EM-
PLOYER PLANS, CONSULTATIONS.—
‘‘(A) SECURITY MAY BE REQUIRED.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in subparagraph (C), the Secretary 
of the Treasury may require an employer 
maintaining a defined benefit plan which is 
a single-employer plan (within the meaning