[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3481 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3481

To provide participants in private pension plans which were terminated 
  before September 1, 1974, the nonforfeitable pension benefits which 
    were lost by reason of the termination, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 1993

 Mr. Roemer (for himself, Mr. Sawyer, and Mr. Oberstar) introduced the 
 following bill; which was referred to the Committee on Education and 
                                 Labor

_______________________________________________________________________

                                 A BILL


 
To provide participants in private pension plans which were terminated 
  before September 1, 1974, the nonforfeitable pension benefits which 
    were lost by reason of the termination, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pension Restoration Act of 1993''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) State; united states.--The terms ``State'' and ``United 
        States'' have the meanings set forth in paragraph (10) of 
        section 3 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002).
            (2) Employer; participant; beneficiary; nonforfeitable; 
        defined benefit plan.--The terms ``employer'', ``participant'', 
        ``beneficiary'', ``nonforfeitable'', and ``defined benefit 
        plan'' have the meanings set forth in paragraphs (5), (7), (8), 
        (19), and (35), respectively, of section 3 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1002).
            (3) Early terminated plan.--The term ``early terminated 
        plan'' means a defined benefit plan--
                    (A) which is described in subsection (a) of section 
                4 of the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1003) and is not described in 
                subsection (b) of that section, and
                    (B) the termination date of which (as determined by 
                the Corporation) was before September 1, 1974.
            (4) Qualified participant.--The term ``qualified 
        participant'' means an individual who--
                    (A) was a participant in an early terminated plan 
                maintained by an employer of such individual, and
                    (B) as of immediately before the termination of the 
                plan had a nonforfeitable right to benefits under the 
                plan.
            (5) Qualified spouse.--The term ``qualified spouse'' means 
        an individual who is the widow (within the meaning of section 
        216(c) of the Social Security Act (42 U.S.C. 416(c)) or the 
        widower (within the meaning of section 216(g) of such Act (42 
        U.S.C. 416(g)) of a qualified participant.
            (6) Corporation.--The term ``Corporation'' means the 
        Pension Benefit Guaranty Corporation.

SEC. 3. ENTITLEMENT TO ANNUITY.

    (a) Entitlement of Qualified Participant.--
            (1) In general.--A qualified participant is entitled, upon 
        approval by the Corporation under this Act of an application 
        therefor, to an annuity payable by the Corporation and computed 
        under section 4(a).
            (2) Commencement.--The annuity of a qualified participant 
        commences on the day after the later of--
                    (A) the effective date set forth in section 12, or
                    (B) the date on which the qualified participant 
                attains 65 years of age.
            (3) Termination.--The annuity of a qualified participant 
        and the right thereto terminate at the end of the last calendar 
        month preceding the date of the qualified participant's death.
    (b) Entitlement of Qualified Spouse.--
            (1) In general.--A qualified spouse is entitled, upon 
        approval by the Corporation under this Act of an application 
        therefor, to an annuity payable by the Corporation and computed 
        under section 4(b).
            (2) Commencement.--The annuity of a qualified spouse of a 
        qualified participant commences on the latest of--
                    (A) the effective date set forth in section 12,
                    (B) the first day of the month in which the 
                qualified participant dies, or
                    (C) if the qualified participant dies before 
                attaining 65 years of age, the first day of the month 
                in which the qualified participant would have attained 
                such age but for the qualified participant's death.
            (3) Termination.--The annuity of a qualified spouse and the 
        right thereto terminate at the end of the last calendar month 
        preceding the date of the qualified spouse's death.

SEC. 4. COMPUTATION OF ANNUITY.

    (a) Qualified Participant's Annuity.--The annuity computed under 
this subsection (relating to a qualified participant) in connection 
with any early terminated plan is equal to the excess (if any) of--
            (1) the product derived by multiplying $75 by the number of 
        years of service of the qualified participant under the plan, 
        over
            (2) the annual amount which would be necessary to amortize 
        in level amounts over 10 years the sum of--
                    (A) any lump sums paid to the qualified participant 
                from the plan in connection with the termination, and
                    (B) the actuarial present value (determined, as of 
                the effective date set forth in section 12, under the 
                assumptions used by the Corporation for purposes of 
                section 4044 of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1344)) of pension benefits under 
                the plan (if any) to which the qualified participant 
                retains a nonforfeitable right under the plan.
    (b) Qualified Spouse's Annuity.--The annuity computed under this 
subsection (relating to the qualified spouse of a qualified 
participant) in connection with an early terminated plan is equal to 
the excess (if any) of--
            (1) 50 percent of the amount determined under paragraph (1) 
        of subsection (a) in connection with such qualified 
        participant, over
            (2) the annual amount which would be necessary to amortize 
        in level amounts over 10 years the sum of--
                    (A) any lump sums paid to the qualified spouse from 
                the plan in connection with the termination, and
                    (B) the actuarial present value (determined, as of 
                the effective date set forth in section 12, under the 
                assumptions used by the Corporation for purposes of 
                section 4044 of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1344)) of pension benefits under 
                the plan (if any) to which the qualified spouse retains 
                a nonforfeitable right under the plan.

SEC. 5. APPLICATIONS.

    (a) Requirements.--An application for an annuity under this Act in 
connection with an early terminated plan shall be approved if--
            (1) the application includes evidence sufficient to 
        establish that the applicant is a qualified participant or 
        qualified spouse in connection with such plan, or
            (2) the evidence included in the application, together with 
        such evidence as the applicant may request the Corporation to 
        consider pursuant to subsection (c), establishes that the 
        applicant is a qualified participant or a qualified spouse in 
        connection with such plan.
    (b) Application Forms.--The Corporation may by regulation prescribe 
application forms which may be used by applicants for purposes of 
subsection (a). Any such forms prescribed by the Corporation shall be 
made available to the public by the Corporation.
    (c) Specific Matters.--In considering applications for annuities 
under this Act, the Corporation shall consider, on the request of an 
applicant or the applicant's representative, in addition to any other 
relevant evidence--
            (1) a comparison of employment and payroll records which 
        were maintained under chapter 21 of the Internal Revenue Code 
        of 1986 (relating to Federal Insurance Contributions Act) or 
        under title II of the Social Security Act (42 U.S.C. 401 et 
        seq.) with records maintained by the Internal Revenue Service 
        relating to the qualification status of trusts forming part of 
        a stock bonus, pension, or profit-sharing plan under part I of 
        subchapter D of chapter 1 of the Internal Revenue Code of 1986 
        (relating to pension, profit sharing, stock bonus plans, etc.), 
        and
            (2) records maintained under the Welfare and Pension Plans 
        Disclosure Act of 1958.
    (d) Procedures for Initial Determinations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, in making initial determinations regarding 
        applications for annuities under this Act, the Corporation 
        shall follow the procedures prescribed by the Corporation for--
                    (A) initial determinations of benefit entitlement 
                of participants and beneficiaries under plans to which 
                section 4021 of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1321) applies, and
                    (B) determinations of the amount of guaranteed 
                benefits of such participants and beneficiaries under 
                title IV of such Act (29 U.S.C. 1301 et seq.).
            (2) Notices of denial.--The Corporation shall send any 
        individual whose application under this Act is denied by the 
        Corporation pursuant to an initial determination a written 
        notice of the denial. Such notice shall include the reason for 
        the denial and shall set forth the procedures required to be 
        followed in order to obtain review under this Act.

SEC. 6. ADMINISTRATIVE APPEALS.

    (a) In General.--Any individual whose application for an annuity 
under this Act is denied pursuant to an initial determination by the 
Corporation is entitled to--
            (1) a reasonable time, but not less than 60 days after 
        receipt of the written notice of denial described in section 
        5(d)(2), to request a review by the Corporation and to furnish 
        affidavits and other documentary evidence in support of the 
        request, and
            (2) a written decision and the specific reasons therefor at 
        the earliest practicable date.
    (b) Procedures.--Except as otherwise provided in subsection (a), in 
reviewing initial determinations regarding applications for annuities 
under this Act, the Corporation shall follow the procedures prescribed 
by the Corporation for requesting and obtaining administrative review 
by the Corporation of determinations described in subparagraphs (A) and 
(B) of section 5(d)(1).

SEC. 7. JUDICIAL REVIEW.

    (a) In General.--Any individual, after any final decision made 
under section 6, irrespective of the amount in controversy, may obtain 
judicial review of the decision by a civil action commenced under this 
section within 180 days after the mailing to the individual of notice 
of such decision or within such further time as the Corporation may 
allow.
    (b) Venue.--Any action commenced under this section shall be 
brought in the district court of the United States for the judicial 
district in which the plaintiff resides or in the United States 
District Court for the District of Columbia.
    (c) Record.--As part of any answer by the Corporation, the 
Corporation shall file a certified copy of the transcript of the 
record, including the evidence upon which the findings and decision 
complained of are based.
    (d) Judgment.--The court shall enter, upon the pleadings and 
transcript of the record a judgment affirming, modifying, or reversing 
the decision, with or without remanding the case for a rehearing.
    (e) Remanded Cases.--
            (1) Authority to remand to the corporation.--The court 
        shall, on the motion of the Corporation made before the 
        Corporation files its answer, remand the case to the 
        Corporation for further action by the Corporation. The court 
        may, at any time, on good cause shown, order additional 
        evidence to be taken before the Corporation.
            (2) Reconsideration on remand.--The Corporation shall, 
        after the case is remanded, and after hearing such additional 
        evidence if so ordered--
                    (A) modify or affirm the earlier findings of fact 
                or decision, or both, under section 6, and
                    (B) file with the court any such additional and 
                modified findings of fact and decision, and a 
                transcript of the additional record and testimony upon 
                which the Corporation's action in modifying or 
                affirming was based.
    (f) Final Judgment.--The judgment of the court shall be final 
except that it shall be subject to review in the same manner as a 
judgment in other civil actions.

SEC. 8. PAYMENT OF ANNUITIES.

    (a) Forms of Payment.--
            (1) Yearly payments.--Each annuity payable under this Act 
        shall be payable as an annual amount.
            (2) Retroactive lump-sum payments.--Any individual whose 
        claim for an annuity under this Act is approved after the date 
        on which the annuity commences under subsection (a)(2) or 
        (b)(2) of section 3 shall be paid the total amount of the 
        annuity payments for periods before the date on which the claim 
        is approved in the form of a lump-sum payment.
    (b) Cases of Incompetency.--Payment due an individual mentally 
incompetent or under other legal disability may be made to the person 
who is constituted guardian or other fiduciary by the law of the State 
of residence of the claimant or is otherwise legally vested with the 
care of the claimant or the claimant's estate. If a guardian or other 
fiduciary of the individual under legal disability has not been 
appointed under the law of the State of residence of the claimant, 
payment may be made to any person who is responsible for the care of 
the claimant, and the payment bars recovery by any other person.
    (c) Divorces, Etc.--
            (1) Alternative payees.--Payments under this Act which 
        would otherwise be made to a person under this Act shall be 
        made (in whole or in part) to another person if and to the 
        extent expressly provided for in the terms of any court decree 
        of divorce, annulment, or legal separation, or the terms of any 
        court order or court-approved property settlement agreement 
        incident to any court decree of divorce, annulment, or legal 
        separation. Any payment under this paragraph to a person bars 
        recovery by any other person.
            (2) Notification requirements.--Paragraph (1) shall only 
        apply to payments made by the Corporation under this Act after 
        the date of receipt by the Corporation of written notification 
        of such decree, order, or agreement, and such additional 
        information and documentation as the Corporation may prescribe.
            (3) Court.--As used in this subsection, the term ``court'' 
        means any court of any State.
    (d) Inalienability.--Amounts payable under this Act are not 
assignable, either in law or equity, or subject to execution, levy, 
attachment, garnishment, or other legal process, except as otherwise 
may be provided by Federal law.
    (e) Forgiveness.--Recovery of payments under this Act may not be 
made from an individual in any case in which the Corporation determines 
that the individual is without fault and recovery would be against 
equity and good conscience.

SEC. 9. INTERAGENCY COORDINATION AND COOPERATION.

    (a) In General.--The Corporation may make such arrangements or 
agreements with other departments, agencies, or establishments of the 
United States for cooperation or mutual assistance in the performance 
of their respective functions under this Act as are necessary and 
appropriate to avoid unnecessary expense and duplication of functions.
    (b) Use of Facilities.--The Corporation may use, as appropriate, on 
a reimbursable or other basis, the facilities or services of any 
department, agency, or establishment of the United States or of any 
State or political subdivision thereof, including the services of any 
of its employees, with the lawful consent of such department, agency, 
or establishment.
    (c) Cooperation.--
            (1) In general.--Each department, agency, or establishment 
        of the United States shall cooperate with the Corporation and, 
        to the extent necessary and appropriate, provide such 
        information and facilities as the Corporation may request for 
        its assistance in the performance of the Corporation's 
        functions under this Act.
            (2) Availability of records from the secretary of health 
        and human services.--The Secretary of Health and Human Services 
        shall provide the Corporation with such records, determined by 
        the Corporation to be necessary to carry out the purposes of 
        this Act, as the Corporation may request.
            (3) Availability of confidential tax returns and return 
        information.--Section 6103(l) of the Internal Revenue Code of 
        1986 (relating to use of returns and return information for 
        purposes other than tax administration) is amended by adding at 
        the end of paragraph (2) the following new sentence: ``Returns 
        and return information shall be open to inspection by or 
        disclosure to officers and employees of the Corporation whose 
        official duties require such inspection or disclosure for the 
        purpose of, but only to the extent necessary in, considering 
        such returns and return information pursuant to section 5(c)(1) 
        of the Pension Restoration Act of 1993, except that such 
        inspection or disclosure shall be permitted only upon written 
        request which sets forth the specific reason or reasons why 
        such inspection or disclosure is necessary and which is signed 
        by the head of the bureau or office of the Corporation 
        requesting the inspection or disclosure.''.

SEC. 10. REGULATIONS.

    The Corporation shall, before the effective date set forth in 
section 12, prescribe the initial regulations necessary to carry out 
the provisions of this Act. Regulations under this Act shall be 
prescribed by the Corporation in consultation, as appropriate, with the 
Secretary of the Treasury and the Secretary of Health and Human 
Services.

SEC. 11. PROGRAM FUNDING.

    (a) Payment.--The Corporation shall use moneys from the appropriate 
revolving funds established under section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1305) to carry out 
its functions under this Act.
    (b) Transfers From Trust Funds.--The Corporation shall transfer to 
the revolving funds described in subsection (a) from the trust funds 
consisting of assets of terminated plans and employer liability 
payments amounts equal to the amounts needed to carry out its functions 
under this Act.

SEC. 12. EFFECTIVE DATE.

    (a) General Rule.--Except as provided in subsection (b), the 
provisions of this Act shall take effect 60 days after the date of the 
enactment of this Act.
    (b) Special Rule.--The provisions of sections 10 and 11 shall take 
effect on the date of the enactment of this Act.

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HR 3481 IH----2