nuity to the divorced spouse and his or her subse-
quent spouse.
‘‘(3) For purposes of this subsection—
‘‘(A) The terms ‘domestic relations order’ and
‘qualified domestic relations order’ shall have the
meanings provided in subsection (d)(3)(B).
‘‘(B) The term ‘marital share’ means, in con-
nection with an accrued benefit under a pension
plan, the product derived by multiplying—
‘‘(i) the actuarial present value of the ac-
crued benefit, by
‘‘(ii) a fraction—
‘‘(I) the numerator of which is the pe-
riod of time, during the marriage between
the spouse and the participant in the plan,
which constitutes creditable service by the
participant under the plan, and
‘‘(II) the denominator of which is the
total period of time which constitutes cred-
itable service by the participant under the
plan.
‘‘(C) The term ‘qualified joint and survivor an-
nuity’ shall have the meaning provided in section
205(d).
‘‘(4) In prescribing regulations under this subsection,
the Secretary shall consult with the Secretary of the
Treasury.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
206(d) of such Act (29 U.S.C. 1056(d)) is amend-
ed—
(A) in the first sentence of paragraph (3),
by inserting ‘‘or if such creation, assignment, or
recognition pursuant to such order is necessary
for compliance with the requirements of sub-
section (e)’’ before the period;
(B) in paragraph (3)(D)(iii), by inserting
‘‘or to a divorced spouse of the participant in
connection with a previously occurring divorce
as required under subsection (e)’’ before the pe-
riod; and
(C) in paragraph (3)(H)(iii), by striking
‘‘if there had been no order’’ and inserting ‘‘in
accordance with subsection (e) as if there had
been no qualified domestic relations order’’.
SEC. 6. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this Act, other than section
2, shall apply with respect to plan years beginning on or
after January 1, 1994, and the amendments made by sec-
tion 5 shall apply only with respect to divorces becoming
final in such plan years.
(b) SPECIAL RULE FOR COLLECTIVELY BARGAINED
PLANS.—In the case of a plan maintained pursuant to 1
or more collective bargaining agreements between em-
ployee representatives and 1 or more employers ratified
on or before the date of the enactment of this Act, sub-
section (a) shall be applied to benefits pursuant to, and
individuals covered by, any such agreement by substituting
for ‘‘January 1, 1994’’ the date of the commencement of
the first plan year beginning on or after the earlier of—
(1) the later of—
(A) January 1, 1994, or
(B) the date on which the last of such col-
lective bargaining agreements terminates (de-
termined without regard to any extension there-
of after the date of the enactment of this Act),
or
(2) January 1, 1996.
(c) PLAN AMENDMENTS.—If any amendment made
by this Act requires an amendment to any plan, such plan
amendment shall not be required to be made before the
first plan year beginning on or after January 1, 1994, if—
(1) during the period after such amendment
made by this Act takes effect and before such first
plan year, the plan is operated in accordance with
the requirements of such amendment made by this
Act, and
(2) such plan amendment applies retroactively
to the period after such amendment made by this
Act takes effect and such first plan year.
A plan shall not be treated as failing to provide definitely
determinable benefits or contributions, or to be operated
in accordance with the provisions of the plan, merely be-
cause it operates in accordance with this subsection.
SEC. 7. STUDY ON COST-OF-LIVING ADJUSTMENTS UNDER
PRIVATE PENSION PLANS.
(a) STUDY BY GENERAL ACCOUNTING OFFICE.—As
soon as possible after the date of the enactment of this
Act, the Comptroller General of the United States, in ac-
cordance with the authority provided under section
11016(d) of the Single-Employer Pension Plan Amend-
ments Act of 1986 (100 Stat. 275), shall undertake a
thorough study with respect to alternative methods of re-
quiring employee pension benefit plans to provide cost-of-
living and other adjustments to benefits payable under
such plans.
(b) MATTERS TO BE STUDIED.—The Comptroller
General, in carrying out the study provided for in this sec-
tion, shall address, analyze, and report specifically on—
(1) the effect inflation is having and may be ex-
pected to have on women receiving private pension
benefits as either plan participants or beneficiaries,
(2) the number of plans which provide for cost-
of-living or other adjustments to benefits,
(3) the manner in which plans providing for
such adjustments determine when, and for whom, an
adjustment will be made,
(4) the frequency with which other plans make
cost-of-living and other benefit adjustments, and
how the determination to make such adjustments is
made,
(5) the possible application of funds currently
available for employer reversions for cost-of-living
and other benefit adjustments, and
(6) the costs incurred in requiring such adjust-
ments to benefits.
(c) REPORT.—Not later than 2 years after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means and the
Committee on Education and Labor of the House of Rep-
resentatives and the Committee on Finance and the Com-
mittee on Labor and Human Resources of the Senate a
report of the findings of the study provided for by this
section, together with any recommendations the Comptrol-
ler General considers appropriate.
SEC. 8. STUDY ON PENSION PORTABILITY.
(a) STUDY BY GENERAL ACCOUNTING OFFICE.—As
soon as possible after the date of the enactment of this
Act, the Comptroller General of the United States, in ac-
cordance with the authority provided under section
11016(d) of the Single-Employer Pension Plan Amend-
ments Act of 1986 (100 Stat. 275), shall undertake a
thorough study with respect to alternative pension port-
ability mechanisms, including mechanisms for promoting
portability of benefits, credited service, and current values
of cash distributions, for preserving and enhancing the
real value of deferred vested pension benefits.
(b) MATTERS TO BE STUDIED.—The Comptroller
General, in carrying out the study provided for in this sec-
tion, shall address, analyze, and report specifically on—
(1) the types of possible portability mechanisms
for both defined benefit plans and defined contribu-
tion plans,
(2) the manner in which, and extent to which,
each mechanism would preserve and enhance the
real value of deferred vested benefits,
(3) the most effective ways to ensure that re-
tirement money will be used for retirement,
or the amendments made thereby shall be construed to
require or permit the treatment, for purposes of such pro-
visions, of a domestic relations order, which is entered on
or after the date of the enactment of this Act and which
supercedes, amends the terms of, or otherwise affects such
prior domestic relations order, as other than a qualified
domestic relations order solely because such prior domestic
relations order was entered before January 1, 1985.
(b) DEFINITIONS.—For purposes of this section—
(1) IN GENERAL.—Terms used in this section
which are defined in section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C.
1002) shall have the meanings provided such terms
by such section.
(2) PRO
RATA
SHARE.—The term ‘‘pro rata
share’’ of a spouse means, in connection with an ac-
crued benefit under a pension plan, 50 percent of
the product derived by multiplying—
(A) the actuarial present value of the ac-
crued benefit, by
(B) a fraction—
(i) the numerator of which is the pe-
riod of time, during the marriage between
the spouse and the participant in the plan,
which constitutes creditable service by the
participant under the plan, and
(ii) the denominator of which is the
total period of time which constitutes cred-
itable service by the participant under the
plan.
(3) PLAN.—All pension plans in which a person
has been a participant shall be treated as one plan
with respect to such person.
Æ
HR 2502 IH——2