SEC. 406. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM
FUNDING CONTRIBUTIONS.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
(1) CLARIFICATION OF APPLICABILITY OF PRO-
VISION.—Section 412(n)(1) of the Internal Revenue
Code of 1986 is amended by striking ‘‘to which this
section applies’’ and inserting ‘‘covered under sec-
tion 4021 of the Employee Retirement Income Secu-
rity Act of 1974’’.
(2) REPEAL
OF
$1,000,000
OFFSET.—Section
412(n)(3) of such Code is amended by striking all
that follows ‘‘equal to’’ through and including ‘‘(B)’’.
(3) 
REPEAL
OF
60-DAY
DELAY.—Section
412(n)(4)(B) of such Code is amended by striking
‘‘60th day following the’’.
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—
(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.—Section
302(f)(3) of such Act is amended by striking all that
follows ‘‘equal to’’ through and including ‘‘(B)’’.
(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
Employee Retirement Income Security Act of 1974 that
become due on or after the date of enactment.
SEC. 407. ROUNDING RULES FOR COST OF LIVING ADJUST-
MENTS.
(a) COST OF LIVING ADJUSTMENT FOR COMPENSA-
TION LIMIT.—Section 401(a)(17)(B) of the Internal Reve-
nue Code of 1986 is revised to read as follows:
‘‘(B) The Secretary shall adjust annually
the $150,000 amount in paragraph (A) for in-
creases in the cost of living at the same time
and in the same manner as adjustments under
section 415(d), except that the base period shall
be the calendar quarter beginning October 1,
1993 and the adjusted value shall be rounded
down to the next lowest multiple of $10,000.’’
(b) COST OF LIVING ADJUSTMENT FOR MAXIMUM
DEFINED BENEFIT AMOUNT.—Section 415(d) of such
Code is amended to read as follows:
‘‘(d) COST OF LIVING ADJUSTMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall adjust
annually—
‘‘(A) the $90,000 amount in subsection
(b)(1)(A), and
‘‘(B) in the case of a participant who sepa-
rated from service, the amount taken into ac-
count under subsection (b)(1)(B),
for increases in the cost-of-living in accordance with
regulations prescribed by the Secretary.
‘‘(2) METHOD.—
‘‘(A) IN GENERAL.—The regulations pre-
scribed under paragraph (1) shall provide for
adjustment procedures which are similar to the
procedures used to adjust benefit amounts
under section 215(i)(2)(A) of the Social Secu-
rity Act.
‘‘(B) PERIODS FOR ADJUSTMENT OF DOL-
LAR
AMOUNT.—For purposes of paragraph
(1)(A)—
‘‘(i) IN
GENERAL.—The adjustment
with respect to any calendar year shall be
based on the increase in the applicable
index as of the close of the calendar quar-
ter ending September 30 of the preceding
calendar year over such index as of the
close of the base period.
‘‘(ii) BASE PERIOD.—For purposes of
clause (i), the base period is the calendar
quarter beginning October 1, 1986.
‘‘(C) BASE PERIOD FOR SEPARATIONS.—
For purposes of paragraph (1)(B), the base pe-
riod is the last calendar quarter of the calendar
year preceding the calendar year in which the
participant separated from service.
‘‘(3) ROUNDING.—The adjusted value of the
$90,000 amount in subsection (b)(1)(A) for a year
rounded down to the next lowest multiple of
$5,000.’’
(c) COST OF LIVING ADJUSTMENT FOR MAXIMUM
ANNUAL ADDITION.—
(1) Section 415(c) of such Code is amended by
adding a new paragraph (8) at the end thereof to
read as follows:
‘‘(8) COST
OF
LIVING
ADJUSTMENTS.—The
Secretary shall adjust annually the $30,000 amount
in paragraph (c)(1)(A) for increases in the cost of
living at the same time and in the same manner as
adjustments under subsection (d), except that the
base period is the calendar quarter beginning Octo-
ber 1, 1993.’’
(2) 
CONFORMING
AMENDMENT.—Section
415(c)(1)(A) of such Code is amended by striking
‘‘(or, if greater 1⁄4 of the dollar limitation in effect
under subsection (b)(1)(A))’’ and inserting ‘‘or such
larger amount as provided under paragraph (8)’’.
(d) COST OF LIVING ADJUSTMENT FOR MAXIMUM
SALARY DEFERRAL.—Section 402(g)(5) of such Code is
amended by inserting before the period at the end of that
paragraph the phrase ‘‘, except that the adjusted value
shall be rounded down to the next lowest multiple of
$500’’.
(e) COST OF LIVING ADJUSTMENT FOR ELIGIBILITY
FOR
SIMPLIFIED
EMPLOYEE
PENSIONS.—Section
408(k)(8) of such Code is amended by inserting before the
period at the end of that paragraph the phrase ‘‘, except
that the adjusted value of the $300 amount shall be
rounded down to the next lowest multiple of $50’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall be effective for years beginning after De-
cember 31, 1994.