I 
108TH CONGRESS 
1ST SESSION H. R. 2719
To provide special funding requirements for certain pension plans maintained 
by commercial passenger air carriers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2003
Mr. CAMP (for himself, Mr. POMEROY, Mr. RAMSTAD, Mr. SANDLIN, Mr. 
MATSUI, Mr. KLECZKA, and Mr. TANNER) introduced the following bill; 
which was referred to the Committee on Education and the Workforce, 
and in addition to the Committee on Ways and Means, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To provide special funding requirements for certain pension 
plans maintained by commercial passenger air carriers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Air Line Pension Act 
of 2003’’. 
SEC. 2. MODIFICATION OF FUNDING REQUIREMENTS FOR 
CERTAIN PLANS. 
(a) FUNDING RULES FOR CERTAIN PLANS.—
(1) IN GENERAL.—Notwithstanding any provi-
sion of the Internal Revenue Code of 1986 or the 
Employee Retirement Income Security Act of 1974 
to the contrary, the provisions of subsections (b), 
(c), and (d) shall apply for any plan year beginning 
after December 27, 2002, in the case of a defined 
benefit plan—
(A) that is established and maintained by 
a commercial passenger air carrier; and 
(B) that has a funded percentage of less 
than 80 percent as of January 1, 2003. 
(2) FUNDED
PERCENTAGE.—For purposes of 
this section, the term ‘‘funded percentage’’ means 
the quotient (expressed as a percentage) derived by 
dividing—
(A) the market value of plan assets as of 
January 1, 2003 (excluding receivable contribu-
tions), by 
(B) the current liability of the plan as of 
January 1, 2003. 
(3) INTEREST RATE.—In determining current 
liability for purposes of paragraph (2), the assumed 
interest rate shall be 6.65 percent. 
(4) ESTIMATION
OF
CURRENT
LIABILITY.—If 
the valuation date for the plan is not January 1,
2003, the current liability as of January 1, 2003, 
shall be estimated based on generally accepted actu-
arial principles and practices. 
(b) MORATORIUM
ON DEFICIT REDUCTION CON-
TRIBUTION.—
(1) 
IN
GENERAL.—In 
applying 
section 
412(l)(9)(A) of such Code and section 302(d)(9)(A) 
of such Act with respect to a plan described in sub-
section (a)(1), the funded current liability percent-
age of the plan shall be treated as not less than 90 
percent for plan years beginning after December 27, 
2002 and before December 27, 2007. 
(2) TERMINATION OF MORATORIUM IN CERTAIN 
CASES.—If the funded current liability percentage of 
the plan, without application of paragraph (1), is 90 
percent or greater during any plan year beginning 
after December 27, 2002 and before December 27, 
2007, paragraph (1) shall cease to apply to the plan 
for plan years beginning with or after such plan 
year. 
(3) EXTENSION OF AMORTIZATION PERIODS.—
For plan years for which paragraph (1) applies in 
the case of the plan, net experience gains and net 
experience losses shall be amortized under sections 
412(b)(2)(B)(iv) and 412(b)(3)(B)(ii) of such Code
(respectively) and sections 302(b)(2)(B)(iv) and 
302(b)(3)(B)(ii) of such Act (respectively), over a 
period of 15 plan years. 
(4) OPTION TO COMBINE OR TO OFFSET AMOR-
TIZATION BASES.—For the first plan year for which 
paragraph (1) applies with respect to the plan, 
amounts required to be amortized under paragraphs 
(2) and (3) of section 412(b) of such Code and para-
graphs (2) and (3) of section 302(b) of such Act 
may be combined into one amount under such sec-
tions, and may be offset against other amounts re-
quired to be amortized under such sections, with the 
resulting amount in either case to be amortized over 
a period of 15 plan years. 
(c) AMORTIZATION OF 2008 UNFUNDED CURRENT 
LIABILITY.—
(1) IN GENERAL.—In such form and manner as 
the Secretary of the Treasury may prescribe, the 
sponsor of a plan described in subsection (a)(1) may 
make a one-time, irrevocable election with the Sec-
retary of the Treasury to amortize the unfunded 
current liability for the first plan year beginning 
after December 27, 2007, on an interest-only basis 
for the first 5 plan years (beginning with such first 
plan year) and thereafter in equal annual install-
ments over a period of 15 plan years (beginning with 
the first plan year after December 27, 2012). 
(2) DETERMINATION OF 2008 UNFUNDED CUR-
RENT LIABILITY IN CALCULATING DEFICIT REDUC-
TION CONTRIBUTION AFTER MORATORIUM ENDS.—If 
the plan sponsor makes an election under paragraph 
(1) with respect to the plan, the unfunded current 
liability of the plan for the first plan year after De-
cember 27, 2007, shall be calculated as follows: 
(A) such unfunded current liability shall 
equal the unfunded current liability as of the 
first day of such first plan year, and 
(B) such unfunded current liability shall be 
calculated using the actuarial value of assets as 
of the first day of such first plan year. 
(3) USE OF 2008 UNFUNDED CURRENT LIABIL-
ITY
IN
CALCULATING
DEFICIT
REDUCTION
AFTER 
MORATORIUM ENDS.—If the plan sponsor makes an 
election under paragraph (1) with respect to the 
plan, the plan’s unfunded old liability, for purposes 
of section 412(l) of such Code and section 302(l) of 
such Act, shall be deemed equal to the unfunded 
current liability calculated under paragraph (2) for 
the first plan year after December 27, 2007, and the 
plan’s unfunded old liability amount for any plan