[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1780 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1780

 To amend the Employee Retirement Income Security Act of 1974 and the 
  Internal Revenue Code of 1986, to provide security for workers, to 
improve pension plan funding, to limit growth in insurance exposure, to 
protect the single-employer plan termination insurance program, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 23, 1993

Mr. Moynihan (by request) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Employee Retirement Income Security Act of 1974 and the 
  Internal Revenue Code of 1986, to provide security for workers, to 
improve pension plan funding, to limit growth in insurance exposure, to 
protect the single-employer plan termination insurance program, 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement 
Protection Act of 1993''.
    (b) Table of Contents.--
Sec. 1. Short title and table of contents.
                     TITLE I--PENSION PLAN FUNDING

      Subtitle A--Amendments to the Internal Revenue Code of 1986

Sec. 101. Minimum funding requirements.
Sec. 102. Limitation on changes in current liability assumptions.
Sec. 103. Recognition of already bargained benefit increases.
Sec. 104. Modification of quarterly contribution requirement.
Sec. 105. Exceptions to excise tax on nondeductible contributions.
 Subtitle B--Amendments to the Employee Retirement Income Security Act 
                                of 1974

Sec. 121. Minimum funding requirements.
Sec. 122. Limitation on changes in current liability assumptions.
Sec. 123. Recognition of already bargained benefit increases.
Sec. 124. Modification of quarterly contribution requirement.
  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

Sec. 201. Reportable events.
Sec. 202. Alternative to involuntary termination.
Sec. 203. Certain information required to be furnished to PBGC.
Sec. 204. Liability upon liquidation of contributing sponsor or 
                            controlled group member where plan remains 
                            ongoing.
Sec. 205. Enforcement of minimum funding requirements.
Sec. 206. Remedies for noncompliance With requirements for standard 
                            termination.
Sec. 207. Prohibition on benefit increases where plan sponsor is in 
                            bankruptcy.
Sec. 208. Substantial owner benefits.
Sec. 209. Phase-out of variable rate premium cap.
                    TITLE III--PARTICIPANT SERVICES

Sec. 301. Disclosure to participants.
Sec. 302. Missing participants.
Sec. 303. Modification to maximum guarantee of disability benefits.
                   TITLE IV--MISCELLANEOUS AMENDMENTS

Sec. 401. ERISA citation.
Sec. 402. Definition of contributing sponsor.
Sec. 403. Recovery ratio under ERISA section 4022(c).
Sec. 404. Distress termination criteria for banking institutions.
Sec. 405. Single sum distributions.
Sec. 406. Adjustments to lien for missed minimum funding contributions.
Sec. 407. Rounding rules for cost of living adjustments.
Sec. 408. Limitation on cross-testing in defined contribution plans.
Sec. 409. Funding of restored plans.
                        TITLE V--EFFECTIVE DATES

Sec. 501. Effective dates.

                     TITLE I--PENSION PLAN FUNDING

      Subtitle A--Amendments to the Internal Revenue Code of 1986

SEC. 101. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
            (1) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 412(l)(1)(A) of the 
                Internal Revenue Code of 1986 is amended to read as 
                follows:
                            ``(ii) the sum of the charges for such plan 
                        years under subsection (b)(2), reduced by the 
                        sum of the credits for such plan year under 
                        subparagraph (B) of subsection (b)(3), and''.
                    (B) The last sentence in section 412(l)(1) is 
                amended to read as follows: ``Such increase shall not 
                exceed the amount necessary to increase the funded 
                current liability percentage (taking into account the 
                expected increase in current liability due to benefits 
                accruing during the plan year) to 100 percent, reduced 
                by the amount described in clause (ii) of paragraph 
                (A).''
            (2) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 412(l) of the Code is amended--
                    (A) by striking the period and inserting ``, and'' 
                at the end of subparagraph (B); and
                    (B) by adding at the end thereof a new subparagraph 
                (C) to read as follows:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (3) Increase in current liability due to change in required 
        assumptions.--Paragraph (3) of section 412(l) of the Code is 
        amended by adding at the end thereof a new subparagraph to read 
        as follows:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) The unfunded old liability amount 
                        with respect to any plan for any plan year 
                        shall be increased by the amount necessary to 
                        amortize the amount of additional unfunded old 
                        liability under the plan, determined under 
                        clause (ii), in equal annual installments over 
                        a period of 12 plan years (beginning with the 
                        first plan year beginning after December 31, 
                        1994).
                            ``(ii) The term `additional unfunded old 
                        liability' means the amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the assumptions 
                                required in paragraph (7)(C) of this 
                                subsection as in effect for plan years 
                                beginning after December 31, 1994, 
                                exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the prior interest 
                                rate and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) For purposes of clause (ii), the 
                        term `prior interest rate' means the rate of 
                        interest that is the same percentage of the 
                        weighted average under paragraph (5) of 
                        subsection (b) for the first plan year 
                        beginning after December 31, 1994, as the rate 
                        of interest that was used by the plan to 
                        determine current liability for the first plan 
                        year beginning after December 31, 1992, was of 
                        the weighted average under such paragraph (5) 
                        of subsection (b) for such first plan year 
                        beginning after December 31, 1992. With the 
                        exception of assumptions concerning the rate of 
                        interest and mortality, the assumptions used 
                        for determining current liability under 
                        subclause (I) of clause (ii) shall also be used 
                        to determine current liability under subclause 
                        (II) of clause (ii).''
            (4) Applicable percentage for determining unfunded new 
        liability amount.--Clause (ii) of section 412(l)(4)(C) of the 
        Code is amended by replacing ``35'' with ``60''.
            (5) Unpredictable contingent event amount.--
                    (A) Paragraph (5)(A) of section 412(l) of the Code 
                is amended--
                            (i) by inserting ``greatest of'' for 
                        ``greater of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting ``, or''; and
                            (iv) by adding a new clause (iii) to read 
                        as follows:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 412(l) of the Code is 
                amended by adding a new subparagraph (E) to read as 
                follows:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
            (6) Required interest rate and mortality assumptions for 
        determining current liability.--Paragraph (7)(C) of section 
        412(l) of the Code is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except the permissible 
                        range under subparagraph (B)(ii) of such 
                        subsection (b)(5) shall not exceed 100 percent 
                        of the weighted average referred to in such 
                        subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the prevailing 
                        commissioners' standard table (described in 
                        section 807(d)(5)(A)) that would be used to 
                        determine reserves for group annuity contracts 
                        issued on the date as of which current 
                        liability is determined (without regard to any 
                        other subparagraph of section 807(d)(5)).''
            (7) Transition rule.--Section 412(l) of the Code is amended 
        by adding at the end thereof a new paragraph (9) to read as 
        follows:
            ``(9) Additional limitations.--
                    ``(A) For any applicable plan year, at the election 
                of the employer (in such manner as is prescribed by the 
                Secretary), the increase under paragraph (1) shall not 
                exceed the greater of--
                            ``(i) the increase that would have been 
                        required under the provisions of such paragraph 
                        (1) as in effect for plan years beginning 
                        before January 1, 1995 if such provisions had 
                        remained in effect for the applicable plan 
                        year, or
                            ``(ii) the amount necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        funded current liability percentage equal to 
                        the sum of the initial funded current liability 
                        percentage of the plan plus the applicable 
                        number of percentage points for such applicable 
                        plan year, reduced by the amount determined 
                        under paragraph (1)(A)(ii).
                    ``(B)(i) Except as provided in clause (iii), for 
                plans with an initial funded current liability 
                percentage that is equal to or less than 75 percent, 
                the applicable number of percentage points for the 
                applicable plan year is--

                    ``In the case of
                                                  The applicable number
                      applicable plan years
                                                          of percentage
                      beginning in:
                                                             points is:
                            1995.....................           3      
                            1996.....................           6      
                            1997.....................           9      
                            1998.....................          12      
                            1999.....................          15      
                            2000.....................          19      
                            2001.....................          24      
                    ``(ii) For plans with an initial funded current 
                liability percentage that is equal to or greater than 
                85 percent, the applicable number of percentage points 
                for the applicable plan year is--

                    ``In the case of
                                                  The applicable number
                      applicable plan years
                                                          of percentage
                      beginning in:
                                                             points is:
                            1995.....................           2      
                            1996.....................           4      
                            1997.....................           6      
                            1998.....................           8      
                            1999.....................          10      
                            2000.....................          13      
                            2001.....................          15      
                    ``(iii) For plans with an initial funded current 
                liability percentage that is greater than 75 percent 
                but less than 85 percent, or for plans with an initial 
                funded current liability percentage equal to or less 
                than 75 percent for which, as of a later applicable 
                plan year, the sum of the initial funded current 
                liability percentage and the applicable number of 
                percentage points attributable to the previous 
                applicable plan year exceed 75 percent, the applicable 
                number of percentage points for any such applicable 
                plan year is the sum of--
                            ``(I) 2 percentage points;
                            ``(II) the applicable number of percentage 
                        points attributable to the previous applicable 
                        plan year (except that such number for the 
                        applicable plan year beginning in 1995 is 
                        zero);
                            ``(III) the product of .10 multiplied by 
                        the excess, if any, of (a) 85 percent over (b) 
                        the sum of the initial funded current liability 
                        percentage and the number under subclause (II);
                            ``(IV) for applicable plan years beginning 
                        in 2000, 1 percentage point; and
                            ``(V) for applicable plan years beginning 
                        in 2001, 2 percentage points.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) `applicable plan year' means a plan 
                        year beginning after December 31, 1994, and 
                        before January 1, 2002; and
                            ``(ii) `initial funded current liability 
                        percentage' means the funded current liability 
                        percentage as of the first day of the first 
                        plan year beginning after December 31, 1994.''
            (8) Three-year solvency requirement.--
                    (A) Section 412(m) of such Code is amended by 
                adding at the end thereof a new paragraph (6) to read 
                as follows:
            ``(6) Three-year solvency requirement.--
                    ``(A) In general.--This paragraph applies to a 
                defined benefit plan that--
                            ``(i) is required to make quarterly 
                        contributions under this subsection for a plan 
                        year, and
                            ``(ii) has liquid assets as of the last day 
                        of the last month preceding the quarterly 
                        installment date that are less than the base 
                        amount for the quarter.
                    ``(B) Amount of quarterly contribution.--The amount 
                of the required installment that is due for any quarter 
                under this subsection is the greater of the amount 
                under this subsection (without regard to this 
                paragraph) or the quarterly solvency payment. Such 
                amount, when added to prior installments for the plan 
                year, shall not exceed the amount necessary to increase 
                the funded current liability percentage (taking into 
                account the expected increase in current liability due 
                to benefits accruing during the plan year) to 100 
                percent.
                    ``(C) Definitions.--For purposes of this paragraph:
                            ``(i) Base amount.--`Base amount' means an 
                        amount that is the product of three multiplied 
                        by the sum of the adjusted disbursements from 
                        the plan for the 12 months ending on the last 
                        day of the last month preceding the quarterly 
                        installment due date. If the amount computed 
                        under the previous sentence exceeds the product 
                        of two multiplied by the sum of adjusted 
                        disbursements for the 36 months ending on the 
                        last day of the last month preceding the 
                        quarterly installment due date, and an enrolled 
                        actuary certifies to the Secretary that the 
                        excess is the result of nonrecurring 
                        circumstances, the base amount shall exclude 
                        amounts related to those nonrecurring 
                        circumstances.
                            ``(ii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payment of single sums 
                        and other benefit payments, and administrative 
                        expenses.
                            ``(iii) Adjusted disbursements.--`Adjusted 
                        disbursements' means the amount of 
                        disbursements reduced by the product of the 
                        plan's funded current liability percentage (as 
                        defined in subsection (1)(8)(B)) for the plan 
                        year multiplied by the sum of annuity 
                        purchases, single sum distributions, and such 
                        other disbursements as the Secretary shall 
                        provide in regulations.
                            ``(iv) Liquid assets.--`Liquid assets' 
                        means cash, marketable securities and such 
                        other assets as specified by the Secretary.
                            ``(v) Quarterly solvency payment.--
                        `Quarterly solvency payment' means an amount of 
                        liquid assets equal to the difference between 
                        the plan's liquid assets and the base amount, 
                        as of the last day of a quarter.
                    ``(D) Effect of solvency contribution.--
                            ``(i) A quarterly solvency payment shall be 
                        treated in the same manner as a quarterly 
                        required installment, except that paragraph 
                        (2)(C) shall be applied by applying 
                        contributions to the latest outstanding 
                        quarterly solvency payment. For purposes of 
                        paragraph (2)(B), a quarterly solvency payment 
                        that is not paid timely shall not be considered 
                        paid until the earlier of the last day of a 
                        later quarter for which either (I) the plan 
                        does to have a quarterly solvency payment 
                        required, or (II) the solvency payment for such 
                        later quarter is paid timely.
                            ``(ii) The Secretary shall provide such 
                        rule as are necessary to avoid duplication or 
                        omission of any factors in the determination 
                        and application of this requirement.''
                    (B) Excise tax on unpaid quarterly solvency 
                payments.--
                            (i) Subsection (e) of section 4971 of the 
                        Code is amended by striking ``(a) or (b)'' 
                        wherever it appears and replacing it with 
                        ``(a), (b) or (f)''.
                            (ii) Section 4971 of the Code is amended by 
                        redesignating subsection (f) as subsection (g) 
                        and adding a new subsection (f) to read as 
                        follows:
    ``(f)(1) For each quarter of the plan year of a plan to which 
section 412 applies, there is imposed a tax of 10 percent of the amount 
of any outstanding quarterly solvency payments as described in section 
412(m)(6). A quarterly solvency payment shall no longer be considered 
outstanding on the earlier of the last day of a later quarter for which 
either (A) the plan does not have a quarterly solvency payment 
required, or (B) the solvency payment for such later quarter is paid 
timely.
    ``(2) If by the end of the fourth quarter following the quarter for 
which a quarterly solvency payment was due, either the plan has a 
quarterly solvency payment due, or the solvency payment for such later 
quarter was not paid timely, (A) there is hereby imposed a tax equal to 
100 percent of the unpaid solvency payment for such earlier quarter, 
and (B) the quarterly solvency payment for such earlier quarter shall 
to longer be considered outstanding.''
                    (C) Outstanding quarterly solvency payments.--
                Section 401(a) of such Code is amended by adding a new 
                paragraph (32) at the end thereof to read as follows:
            ``(32) Outstanding quarterly solvency payments.--A trust 
        forming part of a pension plan shall not be treated as failing 
        to constitute a qualified trust under this section merely 
        because the pension plan of which such trust is a part ceases 
        to make prohibited payments during a period in which a 
        quarterly solvency payment, as defined in section 412(m)(6), is 
        outstanding. A prohibited payment is any payment, in excess of 
        the monthly amount paid under a single life annuity (plus any 
        social security supplements, within the meaning of section 
        411(a)(9)), to a participant or beneficiary whose annuity 
        starting date, as defined in section 417(f)(2), occurs during 
        the period in which there are outstanding quarterly solvency 
        payments, any purchase during such period of an irrevocable 
        commitment from an insurer to pay benefits, and such other 
        payments as provided by the Secretary. For purposes of this 
        subsection, a quarterly solvency payment shall no longer be 
        considered outstanding on the earlier of the last day of a 
        later quarter for which either (A) the plan does not have a 
        quarterly solvency payment required, or (B) the solvency 
        payment for such later quarter is paid timely.''
            (9) Amendment to full funding definition.--
                    (A) Subclause (I) of subsection 412(c)(7)(A)(i) is 
                amended by inserting ``(including the expected increase 
                in current liability due to benefits accruing during 
                the plan year)'' after ``current liability''.
                    (B) Section 412(c)(7) is further amended by 
                inserting in flush language after subparagraph (A), a 
                sentence to read as follows:
        ``In any plan year in which a plan has unfunded current 
        liability under subsection (l)(8), the amount in this 
        subparagraph (A) shall not be less than such unfunded current 
        liability.''
                    (C) Subparagraph (B) of subsection 412(c)(7) is 
                amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (l)(7) (without regard to 
                the interest rate and mortality assumptions required 
                therein, and without regard to subparagraph (D) 
                thereof).''
    (b) Effective Date.--The amendments made by this section shall be 
effective for plan years beginning after December 31, 1994.

SEC. 102. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) Section 412(c) is amended by redesignating paragraph (5) as 
subparagraph (5)(A), and by adding a new subparagraph (5)(B) to read as 
follows:
                    ``(B)(i) Change in assumptions requires approval.--
                If the actuarial assumptions (other than the 
                assumptions described in subsection (l)(7)(C)) used to 
                determine the current liability for a plan are changed, 
                the new actuarial assumptions shall become the 
                actuarial assumptions used to determine current 
                liability for the plan only if the change is approved 
                by the Secretary.
                    ``(ii) Clause (i) shall not apply unless--
                            ``(I) the plan is subject to the 
                        requirements of subsection (l);
                            ``(II) the requirements of section 
                        4043(b)(1) of the Employee Retirement Income 
                        Security Act of 1974 are met; and
                            ``(III) the change in assumptions 
                        (determined after taking into account any 
                        changes in interest rate and mortality table) 
                        results in a decrease in the unfunded current 
                        liability of the plan for the current plan year 
                        that is $50,000,000 or greater, or that is 
                        $5,000,000 or greater and that is 5 percent or 
                        more of the current liability of the plan 
                        before such change.''
    (b) Effective Date.--The amendments made by this section shall be 
effective with respect to assumption changes in plan years beginning 
after November 23, 1993. Assumption changes made in plan years 
beginning after December 31, 1992 that would have required approval 
under this amended section had it been in effect at the time of such 
changes, shall not be effective for plan years beginning after December 
31, 1994 unless approved by the Secretary.

SEC. 103. RECOGNITION OF ALREADY BARGAINED CHANGES IN LIABILITY.

    (a) Section 412(c) is amended by adding a new paragraph (12) at the 
end thereof to read as follows:
            ``(12) Plan liabilities arising from amendments effective 
        in the future.--A collectively bargained plan described in 
        section 413(a) shall anticipate benefit increases scheduled to 
        take effect during the term of the collective bargaining 
        agreement applicable to the plan at the same time and in the 
        same manner as if the plan amendment implementing the provision 
        of the collective bargaining agreement were adopted by the 
        parties when the parties entered into the collective bargaining 
        agreement.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for plan years beginning after December 31, 1994 with respect 
to collective bargaining agreements in effect on or after January 1, 
1995.

SEC. 104. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) Section 412(m) of the Internal Revenue Code of 1986, as amended 
by section 101 of this Act, is further amended by adding at the end 
thereof a new paragraph (7) to read as follows:
            ``(7) Applicability of this subsection.--This subsection 
        applies only with respect to a plan year for which the funded 
        current liability percentage of such plan (within the meaning 
        of subsection (l)(8)(B)) for the preceding plan year is less 
        than 100 percent.''
    (b) Effective Date.--The amendment made by this section shall be 
effective for plan years beginning after the date of enactment of this 
Act.

SEC. 105. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE CONTRIBUTIONS.

    (a) Section 4972(c) of the Internal Revenue Code of 1986 is amended 
by adding a new paragraph (6) to read as follows:
            ``(6) Exceptions.--In determining the amount of 
        nondeductible contributions for any taxable year, there shall 
        not be taken into account--
                    ``(A) Any contributions that would be deductible 
                under section 404(a)(1)(D) if the plan had more than 
                100 participants provided that (i) the plan is covered 
                under section 4021 of the Employment Retirement Income 
                Security Act of 1974, and (ii) the plan is terminated 
                under section 4041(a)(2) of such Act during the plan 
                year ending with or within the taxable year or during a 
                previous plan year.
                    ``(B) Any contributions described in section 
                401(m)(4)(A) or 402(g)(3)(A) that do not exceed 6 
                percent of compensation, as defined in section 
                404(a)(7)(A)(i), that are not deductible merely because 
                of section 404(a)(7). For purposes of the preceding 
                sentence, the deductible limits under section 404(a)(7) 
                shall first be applied to amounts contributed to a 
                defined benefit plan and then to amounts described in 
                the preceding sentence. This subparagraph shall apply 
                only if the defined benefit plan is a plan with more 
                than 100 participants, as described in section 
                404(a)(1)(D).''
    (b) Section 4972(c)(6)(A) as added by this section shall be 
effective for taxable years ending on or after the date of enactment of 
this Act. Section 4972(c)(6)(B) as added by this section shall apply 
for taxable years ending on or after December 31, 1992.

 Subtitle B--Amendments to the Employee Retirement Income Security Act 
                                of 1974

SEC. 121. MINIMUM FUNDING REQUIREMENTS.

    (a) Amendments to Additional Funding Requirements For Single-
employer Plans.----
            (1) Relationship of additional funding requirement to 
        funding standard account charges and credits.--
                    (A) Clause (ii) of section 302(d)(1)(A) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1082(d)) is amended to read as follows:
                            ``(ii) the sum of the charges for such plan 
                        years under subsection (b)(2), reduced by the 
                        sum of the credits for such plan years under 
                        subparagraph (B) of subsection (b)(3), and''
                    (B) The last sentence in section 302(d)(1) is 
                amended to read as follows: ``Such increase shall not 
                exceed the amount necessary to increase the funded 
                current liability percentage (taking into account the 
                expected increase in current liability due to benefits 
                accruing during the plan year) to 100 percent, reduced 
                by the amount described in clause (ii) of paragraph 
                (A).''
            (2) Amendment to deficit reduction contribution.--Paragraph 
        (2) of section 302(d) of such Act is amended--
                    (A) by striking the period and inserting ``, and'' 
                at the end of subparagraph (B); and
                    (B) by adding at the end thereof a new subparagraph 
                (C) to read as follows:
                    ``(C) the expected increase in current liability 
                due to benefits accruing during the plan year.''
            (3) Increase in current liability due to change in required 
        assumptions.--
                    (A) Paragraph (3) of section 302(d) of such Act is 
                amended by adding at the end thereof a new subparagraph 
                to read as follows:
                    ``(D) Special rule for required changes in 
                actuarial assumptions.--
                            ``(i) The unfunded old liability amount 
                        with respect to any plan for any plan year 
                        shall be increased by the amount necessary to 
                        amortize the amount of additional unfunded old 
                        liability under the plan, determined under 
                        clause (ii), in equal annual installments over 
                        a period of 12 plan years (beginning with the 
                        first plan year beginning after December 31, 
                        1994).
                            ``(ii) the term `additional unfunded old 
                        liability' means the amount (if any) by which--
                                    ``(I) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994 valued using the assumptions 
                                required in paragraph (7)(C) of this 
                                subsection as in effect for plan years 
                                beginning after December 31, 1994, 
                                exceeds
                                    ``(II) the current liability of the 
                                plan as of the beginning of the first 
                                plan year beginning after December 31, 
                                1994, valued using the prior interest 
                                rate and using such mortality 
                                assumptions as were used to determine 
                                current liability for the first plan 
                                year beginning after December 31, 1992.
                            ``(iii) For purposes of clause (ii), the 
                        term `prior interest rate' means the rate of 
                        interest that is the same percentage of the 
                        weighted average under paragraph (5) of 
                        subsection (b) for the first plan year 
                        beginning after December 31, 1994 as the rate 
                        of interest that was used by the plan to 
                        determine current liability for the first plan 
                        year beginning after December 31, 1992 was of 
                        the weighted average under such paragraph (5) 
                        of subsection (b) for such first plan year 
                        beginning after December 31, 1992. With the 
                        exception of assumptions concerning the rate of 
                        interest and mortality, the assumptions used 
                        for determining current liability under 
                        subclause (I) of clause (ii) shall also be used 
                        to determine current liability under subclause 
                        (II) of clause (ii).''
            (4) Applicable percentage for determining unfunded new 
        liability amount.--Clause (ii) of section 302(d)(4)(C) of such 
        Act is amended by replacing ``35'' with ``60''.
            (5) Unpredictable contingent event amount.--
                    (A) Paragraph (5)(A) of section 302(d) of such Act 
                is amended--
                            (i) by inserting ``greatest of'' for 
                        ``greater of'' before clause (i);
                            (ii) by striking ``or'' at the end of 
                        clause (i);
                            (iii) by striking the period at the end of 
                        clause (ii) and inserting '', or''; and
                            (iv) by adding a new clause (iii) to read 
                        as follows:
                            ``(iii) the additional amount that would be 
                        determined under paragraph (4)(A) if the 
                        unpredictable contingent event benefit 
                        liabilities were included in unfunded new 
                        liability notwithstanding paragraph 
                        (4)(B)(ii).''
                    (B) Paragraph (5) of section 302(d) of such Act is 
                amended by adding a new subparagraph (E) to read as 
                follows:
                    ``(E) Limitation.--The present value of the amounts 
                described in subparagraph (A) with respect to any one 
                event shall not exceed the unpredictable contingent 
                event benefit liabilities attributable to that event.''
            (6) Required interest rate and mortality assumptions for 
        determining current liability.--Paragraph (7)(C) of section 
        302(d) of such Act is amended to read as follows:
                    ``(C) Interest rate and mortality assumptions 
                used.--Effective for plan years beginning after 
                December 31, 1994--
                            ``(i) the rate of interest used to 
                        determine current liability under this 
                        subsection shall be the rate of interest used 
                        under subsection (b)(5), except the permissible 
                        range under subparagraph (B)(ii) of such 
                        subsection (b)(5) shall not exceed 100 percent 
                        of the weighted average referred to in such 
                        subparagraph, and
                            ``(ii) the mortality table used to 
                        determine current liability under this 
                        subsection shall be the prevailing 
                        commissioners' standard table (described in 
                        section 807(d)(5)(A) of the Internal Revenue 
                        Code of 1986) that would be used to determine 
                        reserves for group annuity contracts issued on 
                        the date as of which current liability is 
                        determined (without regard to any other 
                        subparagraph of section 807(d)(5) of the 
                        Internal Revenue Code of 1986).''
            (7) Transition rule.--Section 302(d) of such Act is amended 
        by adding at the end thereof a new paragraph (9) to read as 
        follows:
            ``(9) Additional limitations.--
                    ``(A) For any applicable plan year, at the election 
                of the employer (in such manner as is prescribed by the 
                Secretary of the Treasury), the increase under 
                paragraph (1) shall not exceed the greater of--
                            ``(i) the increase that would have been 
                        required under the provisions of such paragraph 
                        (1) as in effect for plan years beginning 
                        before January 1, 1995, if such provisions had 
                        remained in effect for the applicable plan 
                        year, or
                            ``(ii) the amount necessary to increase the 
                        funded current liability percentage (taking 
                        into account the expected increase in current 
                        liability due to benefits accruing during the 
                        plan year) for the applicable plan year to a 
                        funded current liability percentage equal to 
                        the sum of the initial funded current liability 
                        percentage of the plan plus the applicable 
                        number of percentage points for such applicable 
                        plan year, reduced by the amount determined 
                        under paragraph (1)(A)(ii).
                    ``(B)(i) Except as provided in clause (iii), for 
                plans with an initial funded current liability 
                percentage that is equal to or less than 75 percent, 
                the applicable number of percentage points for the 
                applicable plan year is--

                    ``In the case of
                                                  The applicable number
                      applicable plan years
                                                          of percentage
                      beginning in:
                                                             points is:
                            1995.....................           3      
                            1996.....................           6      
                            1997.....................           9      
                            1998.....................          12      
                            1999.....................          15      
                            2000.....................          19      
                            2001.....................          24      
                    ``(ii) For plans with an initial funded current 
                liability percentage that is equal to or greater than 
                85 percent, the applicable number of percentage points 
                for the applicable plan year is--

                    ``In the case of
                                                  The applicable number
                      applicable plan years
                                                          of percentage
                      beginning in:
                                                             points is:
                            1995.....................           2      
                            1996.....................           4      
                            1997.....................           6      
                            1998.....................           8      
                            1999.....................          10      
                            2000.....................          13      
                            2001.....................          15      
                    ``(iii) For plans with an initial funded current 
                liability percentage that is greater than 75 percent 
                but less than 85 percent, or for plans with an initial 
                funded current liability percentage equal to or less 
                than 75 percent for which, as of a later applicable 
                plan year, the sum of the initial funded current 
                liability percentage and the applicable number of 
                percentage points attributable to the previous 
                applicable plan year exceed 75 percent, the applicable 
                number of percentage points for any such applicable 
                plan year is the sum of--
                            ``(I) 2 percentage points;
                            ``(II) the applicable number of percentage 
                        points attributable to the previous applicable 
                        plan year (except that such number for the 
                        applicable plan year beginning in 1995 is 
                        zero);
                            ``(III) the product of .10 multiplied by 
                        the excess, if any, of (a) 85 percent over (b) 
                        the sum of the initial funded current liability 
                        percentage and the number under subclause (II);
                            ``(IV) for applicable plan years beginning 
                        in 2000, 1 percentage point; and
                            ``(V) for applicable plan years beginning 
                        in 2001, 2 percentage points.
                    ``(D) Definitions.--For purposes of this 
                paragraph--
                            ``(i) `applicable plan year' means a plan 
                        year beginning after December 31, 1994, and 
                        before January 1, 2002; and
                            ``(ii) `initial funded current liability 
                        percentage' means the funded current liability 
                        percentage as of the first day of the first 
                        plan year beginning after December 31, 1994.''
            (8) Three-year solvency requirement.--
                    (A) Section 302(e) of such Act is amended by adding 
                at the end thereof a new paragraph (6) to read as 
                follows:
            ``(6) Three-year solvency requirement.--
                    ``(A) In general.--This paragraph applies to a 
                defined benefit plan that--
                            ``(i) is required to make quarterly 
                        contributions under this subsection for a plan 
                        year, and
                            ``(ii) has liquid assets as of the last day 
                        of the last month preceding the quarterly 
                        installment date that are less than the base 
                        amount for the quarter.
                    ``(B) Amount of quarterly contribution.--The amount 
                of the required installment that is due for any quarter 
                under this subsection is the greater of the amount 
                under this subsection (without regard to this 
                paragraph) or the quarterly solvency payment. Such 
                amount, when added to prior installments for the plan 
                year, shall not exceed the amount necessary to increase 
                the funded current liability percentage (taking into 
                account the expected increase in current liability due 
                to benefits accruing during the plan year) to 100 
                percent.
                    ``(C) Definitions.--For purposes of this paragraph:
                            ``(i) Base amount.--`Base amount' means an 
                        amount that is the product of three multiplied 
                        by the sum of the adjusted disbursements from 
                        the plan for the 12 months ending on the last 
                        day of the last month preceding the quarterly 
                        installment due date. If the amount computed 
                        under the previous sentence exceeds the product 
                        of two multiplied by the sum of adjusted 
                        disbursements for the 36 months ending on the 
                        last day of the last month preceding the 
                        quarterly installment date, and an enrolled 
                        actuary certifies to the Secretary of the 
                        Treasury that the excess is the result of 
                        nonrecurring circumstances, the base amount 
                        shall exclude amounts related to those 
                        nonrecurring circumstances.
                            ``(ii) Disbursements from the plan.--The 
                        term `disbursements from the plan' means all 
                        disbursements from the trust, including 
                        purchases of annuities, payment of single sums 
                        and other benefit payments, and administrative 
                        expenses.
                            ``(iii) Adjusted disbursements.--`Adjusted 
                        disbursements' means the amount of 
                        disbursements reduced by the product of the 
                        plan's funded current liability percentage (as 
                        defined in subsection (d)(8)(B)) for the plan 
                        year multiplied by the sum of annuity 
                        purchases, single sum distributions, and such 
                        other disbursements as the Secretary of the 
                        Treasury shall provide in regulations.
                            ``(iv) Liquid assets.--`Liquid assets' 
                        means cash, marketable securities and such 
                        other assets as specified by the Secretary of 
                        the Treasury.
                            ``(v) Quarterly solvency payment.--
                        `Quarterly solvency payment' means an amount of 
                        liquid assets equal to the difference between 
                        the plan's liquid assets and the base amount, 
                        as of the last day of a quarter.
                    ``(D) Effect of solvency contribution.--
                            ``(i) A quarterly solvency payment shall be 
                        treated in the same manner as a quarterly 
                        required installment, except that paragraph 
                        (2)(C) shall be applied by applying 
                        contributions to the latest outstanding 
                        quarterly solvency payment. For purposes of 
                        paragraph (2)(B), a quarterly solvency payment 
                        that is not paid timely shall not be considered 
                        paid until the earlier of the last day of a 
                        later quarter for which (I) the plan does not 
                        have a quarterly solvency payment required, or 
                        (II) the solvency payment for such later 
                        quarter is paid timely.
                            ``(ii) The Secretary of the Treasury shall 
                        provide such rules as are necessary to avoid 
                        duplication or omission of any factors in the 
                        determination and application of this 
                        requirement.''
                    (B) Limitation on distributions other than life 
                annuities paid by the plan.--
                            (i) Section 204 of the Employee Retirement 
                        Income Security Act of 1974 (29 U.S.C. 1054) is 
                        amended by redesignating subsection (i) as (j) 
                        and inserting a new subsection (i) to read as 
                        follows:
                            ``(i) Notwithstanding any other provision 
                        of this part, the fiduciary of a pension plan 
                        that is subject to the additional funding 
                        requirements of section 302(d) shall not permit 
                        a prohibited payment to be made from a plan 
                        during a period in which a quarterly solvency 
                        payment, as defined in section 302(e)(6), is 
                        outstanding. A prohibited payment is any 
                        payment, in excess of the monthly amount paid 
                        under a single life annuity (plus any social 
                        security supplements, within the meaning of 
                        section 204(b)(1)(G)), to a participant or 
                        beneficiary whose annuity starting date, as 
                        defined in section 205(h)(2), occurs during the 
                        period in which there are outstanding quarterly 
                        solvency payments, any purchase during such 
                        period of an irrevocable commitment from an 
                        insurer to pay benefits, and such other 
                        payments as provided by the Secretary of the 
                        Treasury. For purposes of this subsection, a 
                        quarterly solvency payment shall no longer be 
                        considered outstanding on the earlier of the 
                        last day of a later quarter for which either 
                        (I) the plan does not have a quarterly solvency 
                        payment required, or (II) the solvency payment 
                        for such later quarter is paid timely. 
                        Compliance with this subsection shall not 
                        constitute a violation of any other provision 
                        of this Act.''
                            (ii) Section 502 of such Act is amended by 
                        adding at the end thereof a new subsection (m) 
                        to read as follows:
    ``(m) In the case of a distribution to a pension plan participant 
or beneficiary in violation of section 204(i) by a plan fiduciary, the 
Secretary shall assess a penalty against such fiduciary in an amount 
equal to the value of the distribution. Such penalty shall not exceed 
$10,000 for each such distribution.''
            (9) Amendment to full funding definition.--
                    (A) Subclause (I) of subsection 302(c)(7)(A)(i) of 
                such Act is amended by inserting ``(including the 
                expected increase in current liability due to benefits 
                accruing during the plan year)'' after ``current 
                liability''.
                    (B) Section 302(c)(7) is further amended by 
                inserting in flush language after subparagraph (A), a 
                new sentence to read as follows:
                ``In any plan year in which a plan has unfunded current 
                liability under subsection (d)(8), the amount in this 
                subparagraph (A) shall not be less than such unfunded 
                current liability.''
                    (C) Subparagraph (B) of subsection 302(c)(7) is 
                amended to read as follows:
                    ``(B) Current liability.--For purposes of 
                subparagraph (D) and subclause (I) of subparagraph 
                (A)(i), the term `current liability' has the meaning 
                given such term by subsection (d)(7) (without regard to 
                the interest rate and mortality assumptions required 
                therein, and without regard to subparagraph (D) 
                thereof).''
    (b) Effective Date.--The amendments made by this section shall be 
effective for plan years beginning after December 31, 1994.

SEC. 122. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

    (a) Section 302(c) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1082(c)) is amended by redesignating paragraph (5) 
as subparagraph (5)(A), and adding a new subparagraph (5)(B) to read as 
follows:
            ``(B)(i) Change in assumptions requires approval.--If the 
        actuarial assumptions (other than the assumptions described in 
        subsection (d)(7)(C)) used to determine the current liability 
        for a plan are changed, the new actuarial assumptions shall 
        become the actuarial assumptions used to determine current 
        liability for the plan only if the change is approved by the 
        Secretary of the Treasury.
            ``(ii) Clause (i) shall not apply unless--
                    ``(I) the plan is subject to the requirements of 
                subsection (d);
                    ``(II) the requirements of section 4043(b)(1) are 
                met; and
                    ``(III) the change in assumptions (determined after 
                taking into account any changes in interest rate and 
                mortality table) results in a decrease in the unfunded 
                current liability of the plan for the current plan year 
                that is $50,000,000 or greater, or that is $5,000,000 
                or greater and that is 5 percent or more of the current 
                liability of the plan before such change.''
    (b) Effective Date.--The amendments made by this section shall be 
effective with respect to assumption changes in plan years beginning 
after November 23, 1993. Assumption changes made in plan years 
beginning after December 31, 1992, that would have required approval 
under this amended section had it been in effect at the time of such 
changes, shall not be effective for plan years beginning after December 
31, 1994, unless approved by the Secretary of the Treasury.

SEC. 123. RECOGNITION OF ALREADY BARGAINED CHANGES IN LIABILITY.

    (a) Section 302(c) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1082(c)) is amended by adding a new paragraph (12) 
at the end thereof to read as follows:
            ``(12) Plan liabilities arising from amendments effective 
        in the future.--A collectively bargained plan described in 
        section 413(a) of the Internal Revenue Code of 1986 shall 
        anticipate benefit increases scheduled to take effect during 
        the term of the collective bargaining agreement applicable to 
        the plan at the same time and in the same manner as if the plan 
        amendment implementing the provision of the collective 
        bargaining agreement were adopted by the parties when the 
        parties entered into the collective bargaining agreement.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for plan years beginning after December 31, 1994, with 
respect to collective bargaining agreements in effect on or after 
January 1, 1995.

SEC. 124. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

    (a) Section 302(e) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1082(e)), as amended by section 121 of this Act, is 
further amended by adding at the end thereof a new paragraph (7) to 
read as follows:
            ``(7) Applicability of this subsection.--This subsection 
        applies only with respect to a plan year for which the funded 
        current liability percentage of such plan (within the meaning 
        of subsection (d)(8)(B)) for the preceding plan year is less 
        than 100 percent.''
    (b) Effective Date.--The amendment made by this section shall be 
effective for plan years beginning after the date of enactment of this 
Act.

  TITLE II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
                      INCOME SECURITY ACT OF 1974

SEC. 201. REPORTABLE EVENTS.

    (a) Responsibility for Reportable Events Reporting.--Section 
4043(a) of the Employee Retirement Income Security Act of 1974 [29 
U.S.C. Sec. 1343(a)] is amended--
            (1) by inserting ``, unless a notice has already been 
        provided with respect to such event'' before the period at the 
        end of the first sentence;
            (2) by inserting ``or the contributing sponsor'' before 
        ``knows or has reason to know''; and
            (3) by striking the last sentence.
    (b) Notification That Event Is About To Occur.--Section 4043 of 
such Act is amended by redesignating subsections (b), (c) and (d) as 
(c), (d) and (e), respectively, and by inserting a new subsection (b) 
to read as follows:
    ``(b)(1) The requirement of this subsection shall be applicable to 
a contributing sponsor only if the aggregate unfunded vested benefits 
at the close of the preceding plan year (as determined under section 
4006(a)(3)(E)(iii)) of plans maintained by such sponsor and the members 
of such sponsor's controlled group that are covered by this title 
(taking into account only those plans with unfunded vested benefits) 
exceed $50,000,000.
    ``(2) No later than 30 days prior to the effective date of an event 
described in paragraphs (9) through (13) of subsection (c) of this 
section, a contributing sponsor described in paragraph (1) of this 
subsection shall notify the corporation that the event is about to 
occur.
    ``(3) The corporation is authorized to waive the requirement of 
this subsection with respect to any or all reportable events with 
respect to any contributing sponsor.''
    (c) New Reportable Events.--Subsection 4043(c), as redesignated, is 
amended--
            (1) by striking the ``or'' at the end of paragraph (8); and
            (2) by striking paragraph (9) and inserting, after 
        paragraph (8), new paragraphs (9) through (13) to read as 
        follows:
            ``(9) when, as a result of an event, a person ceases to be 
        a member of the controlled group;
            ``(10) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group liquidates in a case 
        under title 11, United States Code, or under any similar 
        Federal law or law of a State or political subdivision of a 
        State;
            ``(11) when a contributing sponsor or a member of a 
        contributing sponsor's controlled group declares an 
        extraordinary dividend (as defined in section 1059(c) of the 
        Internal Revenue Code of 1986) or redeems, in any 12-month 
        period, an aggregate of 10 percent or more of the total 
        combined voting power of all classes of stock entitled to vote, 
        or an aggregate of 10 percent or more of the total value of 
        shares of all classes of stock, of a contributing sponsor and 
        all members of its controlled group;
            ``(12) when, in any 12-month period, an aggregate of 3 
        percent or more of the benefit liabilities of a plan covered by 
        this title and maintained by a contributing sponsor or a member 
        of its controlled group are transferred to a person that is not 
        a member of the controlled group or to a plan or plans 
        maintained by a person or persons that are not such 
        contributing sponsor or a member of its controlled group; or
            ``(13) when any other event occurs that may be indicative 
        of a need to terminate the plan and that is prescribed by the 
        corporation in regulations.''
    (d) Disclosure Exemption.--Section 4043 of such Act is amended by 
adding at the end a new subsection (f) to read as follows--
    ``(f) Any information or documentary material submitted to the 
corporation pursuant to subsection (c) or subsection 4050(c)(2) shall 
be exempt from disclosure under section 552 of title 5, United States 
Code, and no such information or documentary material may be made 
public, except as may be relevant to any administrative or judicial 
action or proceeding. Nothing in this section is intended to prevent 
disclosure to either body of Congress or to any duly authorized 
committee or subcommittee of the Congress.''
    (e) Technical and Conforming Amendments.--Subsection (a) of section 
4043 of such Act, and subsections (d) and (e) of such section 4043, as 
redesignated by this Act, are amended by replacing ``subsection (b)'' 
each time it appears with ``subsection (c)''. Section 4042(a)(3) of 
such Act is amended by replacing ``4043(b)(7)'' with ``4043(c)(7)''.
    (f) Effective Date.--The amendments made by this section shall be 
effective for events occurring 60 days or more after the date of 
enactment of this Act.

SEC. 202. ALTERNATIVE TO INVOLUNTARY TERMINATION.

    (a) General Rule.--Subtitle C of title IV of the Employee 
Retirement Income Security Act of 1974 is amended by adding at the end 
thereof a new section 4050 to read as follows:

``SEC. 4050. JUDICIAL RELIEF OTHER THAN INVOLUNTARY TERMINATION.

    ``(a)(1) Whenever the corporation determines (without regard to the 
potential availability of relief under this section) that, upon the 
occurrence of an event described in section 4043(c) (9) through (13), 
the possible long-run loss of the corporation with respect to a plan 
may reasonably be expected to increase unreasonably if the plan is not 
terminated, the corporation may, in its discretion, institute 
proceedings under this section as an alternative to instituting 
proceedings under section 4042 to terminate the plan.
    ``(2) In the case of an event described in section 4043(c) (9) or 
(13), this section shall apply only if, immediately after the effective 
date of the event, the total revenues, the total operating income, or 
the total assets of a contributing sponsor and all members of its 
controlled group would be less than 90 percent of the total revenues, 
the total operating income, or the total assets, respectively, of a 
contributing sponsor and all members of its controlled group 
immediately before the effective date of the event. For purposes of 
this paragraph, all events occurring in any 12-month period shall be 
treated as a single event.
    ``(b) Whenever the corporation makes a determination under 
subsection (a), it may, upon notice to a contributing sponsor, apply to 
the appropriate United States district court for such legal or 
equitable relief as the corporation deems appropriate and consistent 
with its duties under this title. The court shall consider the 
interests of both the participants and the corporation, and shall grant 
such relief, if any, as it determines is necessary to protect those 
interests without interfering unreasonably with the business of the 
contributing sponsor or members of its controlled group.
    ``(c)(1) In any case in which the corporation is provided with a 
notice required by subsection 4043(b) within the time specified in that 
subsection, the corporation may bring an action under this section no 
later than 30 days after the date such notice is received. 
Notwithstanding the preceding sentence, the corporation may, no later 
than 30 days after the date such notice is received, require the 
submission of additional information or documentary material, in which 
case an action under this section may be brought no later than 20 days 
after the corporation receives all the information and documentary 
material it had required.
    ``(2) A person who has provided a notice as described in paragraph 
(1) may elect, upon further notice to the corporation, to proceed with 
an event prior to the expiration of the time periods described in 
paragraph (1). In that event, an action under this section may be 
brought at any time within the period specified in subsection 
4003(e)(6).
    ``(3) In any case in which the corporation is not provided with a 
notice required by subsection 4043(b) by the time specified in that 
subsection, where a person fails or refuses to provide the additional 
information or documentary material required by the corporation under 
paragraph (1), or where a person proceeds with the event without 
providing the corporation with the further notice required under 
paragraph (2), an action under this section may be brought at any time 
within the time period specified in subsection 4003(e)(6).
    ``(4) Except as provided in paragraph (1), (2) or (3), an action 
under this section may not be brought after the effective date of the 
event giving rise to the transaction.
    ``(5) For purposes of applying subsection 4003(e)(6) to paragraphs 
(2) and (3), a cause of action shall be deemed to arise on the 
effective date of the event.
    ``(d) Nothing in this section shall limit the authority of the 
corporation to initiate proceedings to terminate a plan under section 
4042, or to initiate proceedings or to seek relief under any other 
provision of this title or any other law.''
    (b) Conforming Amendment.--Section 4042(a) of such Act (29 U.S.C. 
1342(a)) is amended by inserting, after ``determines'' the first time 
it appears, the following: ``(without regard to the potential 
availability of relief under section 4050)''.
    (c) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the item relating to 
section 4048 the following new item:

``Sec. 4050. Judicial relief other than involuntary termination.''
    (d) Effective Date.--The amendments made by this section shall be 
effective for events occurring on or after 60 days after the enactment 
of this Act.

SEC. 203. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO PBGC.

    (a) General Rule.--Subtitle A of title IV of the Employee 
Retirement Income Security Act of 1974 is amended by adding at the end 
thereof a new section 4010 to read as follows:

``SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMATION.

    ``(a) Each person described in subsection (b) shall provide the 
corporation annually, on or before a date specified by the corporation 
in regulations, with--
            ``(1) such records, documents, or other information that 
        the corporation specifies in regulations as necessary to 
        determine the liabilities and assets of plans covered by this 
        title; and
            ``(2) copies of such person's audited (or, if unavailable, 
        unaudited) financial statements, and such other financial 
        information as the corporation may prescribe in regulations.
    ``(b) The persons covered by subsection (a) are each contributing 
sponsor, and each member of a contributing sponsor's controlled group, 
of a single-employer plan covered by this title, where--
            ``(1) the aggregate unfunded vested benefits at the end of 
        the preceding plan year (as determined under section 
        4006(a)(3)(E)(iii)) of plans maintained by the contributing 
        sponsor and the members of its controlled group (taking into 
        account only those plans of the contributing sponsor and its 
        controlled group with unfunded vested benefits) exceed 
        $50,000,000; or
            ``(2) the conditions for imposition of a lien described in 
        section 302(f)(1)(A) and (B) or section 412(n)(1)(A) and (B) of 
        the Internal Revenue Code of 1986 have been met with respect to 
        any such plan; or
            ``(3) minimum funding waivers in excess of $1,000,000 have 
        been granted with respect to any such plan, and any portion 
        thereof is still outstanding.
    ``(c) Any information or documentary material submitted to the 
corporation pursuant to this section shall be exempt from disclosure 
under section 552 of title 5, United States Code, and no such 
information or documentary material may be made public, except as may 
be relevant to any administrative or judicial action or proceeding. 
Nothing in this section is intended to prevent disclosure to either 
body of Congress or to any duly authorized committee or subcommittee of 
the Congress.''
    (b) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the items relating to 
section 4009 the following new item:

``Sec. 4010. Authority to require certain information.''
    (c) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act.

SEC. 204. LIABILITY UPON LIQUIDATION OF CONTRIBUTING SPONSOR OR 
              CONTROLLED GROUP MEMBER WHERE PLAN REMAINS ONGOING.

    (a) In General.--Section 4062 of the Employee Retirement Income 
Security Act of 1974 [29 U.S.C. Sec. 1362] is amended by adding at the 
end thereof a new subsection (f) to read as follows:
    ``(f) Liability on Liquidation of Contributing Sponsor or 
Controlled Group Member.--
            ``(1) In general.--In any case in which all or 
        substantially all of the assets of a person who is a 
        contributing sponsor of a single-employer plan, or a member of 
        a controlled group of a contributing sponsor of a single-
        employer plan, are liquidated in a case under title 11, United 
        States Code, or under any similar Federal law or law of a State 
        or political subdivision of State, but the plan is not 
        terminated, such person shall be deemed liable under subsection 
        (b) as if the plan had terminated under section 4041(c) in the 
        course of such liquidation and as if the termination date were 
        the date determined by the corporation as the date on which the 
        liquidation was initiated.
            ``(2) Applicability of other provisions.--The liability 
        under this subsection shall be joint and several only among the 
        members of the controlled group (including, where applicable, 
        the contributing sponsor) who are liquidating as described in 
        paragraph (1). Subject to that exception, any provision of this 
        Act or any other provision of law that applies to liability 
        under this section upon termination of a plan shall apply in 
        the same manner and to the same extent to the liability 
        established under this subsection. For purposes of this 
        paragraph, the date referred to in paragraph (1) shall be 
        deemed the termination date.
            ``(3) Liability owed to plan; transfer of liability 
        payments to the ongoing plan where collected by the 
        corporation.--The liability established under this subsection 
        shall be owed to the plan, and may be collected by either the 
        plan or the corporation. The corporation shall pay to the plan 
        any amounts collected by the corporation in satisfaction of the 
        liability established under this subsection in connection with 
        such plan.
            ``(4) Regulations.--The corporation may prescribe 
        regulations under this section, including--
                    ``(A) rules governing--
                            ``(i) the determination of whether and when 
                        a liquidation referred to in this subsection 
                        has occurred, and
                            ``(ii) the assignment of the plan's or 
                        corporation's claim to liability payments under 
                        this subsection to other members of the 
                        controlled group as a means of collecting such 
                        payments, subject to the transfer of such 
                        payments to the plan, and
                    ``(B) rules providing alternative arrangements for 
                making liability payments under this subsection.''
    (b) Conforming Amendment.--Section 4062(a) of such Act is amended--
            (1) by striking ``and'' after ``subsection (b),'';
            (2) by striking the period after ``subsection (c)'' and 
        inserting ``, and''; and
            (3) by adding a new paragraph (3) at the end thereof to 
        read as follows:
            ``(3) liability to the plan, to the extent provided in 
        subsection (f).''
    (c) Effective Date.--The amendments made by this section shall be 
effective for liquidations initiated on or after the date of enactment 
of this Act.

SEC. 205. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.

    (a) In General.--Paragraph (1) of section 4003(e) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is 
amended by inserting ``(i)'' after ``enforce'' and by striking the 
period after ``title'' and inserting ``, and (ii) in the case of a plan 
covered under this title (other than a multiemployer plan) and for 
which the conditions for imposition of a lien described in section 
302(f)(1) (A) and (B) or section 412(n)(1)(A) and (B) of the Internal 
Revenue Code of 1986 have been met, section 302 of this Act and section 
412 of the Internal Revenue Code of 1986.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for installments and other payments required under section 
302 of the Employee Retirement Income Security Act of 1974 or section 
412 of the Internal Revenue Code of 1986 that become due on or after 
the date of the enactment of this Act.

SEC. 206. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS FOR STANDARD 
              TERMINATION.

    (a) Notice of Noncompliance.--Section 4041(b)(2)(C)(i) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1341(b)(2)(C)(i)) is amended--
            (1) by revising subclause (I) to read as follows:
                                    ``(I) it determines, based on the 
                                notice sent under paragraph (2)(A) of 
                                subsection (b), that there is reason to 
                                believe that the plan is not sufficient 
                                for benefit liabilities, or'';
            (2) by striking the period that follows subclause (II), and 
        inserting ``, or''; and
            (3) by adding a new subclause (III) to read as follows:
                                    ``(III) it determines that any 
                                other requirement of subparagraph (A) 
                                or (B) of this paragraph or of 
                                subsection (a)(2) has not been met, 
                                unless it further determines that the 
                                issuance of such notice would be 
                                inconsistent with the interests of 
                                participants and beneficiaries.''
    (b) Effective Date.--The amendments made by this section shall 
apply to any plan termination under section 4041(b) of the Employee 
Retirement Income Security Act of 1974 with respect to which the 
Pension Benefit Guaranty Corporation has not, as of the date of 
enactment of this Act, issued a notice of noncompliance that has become 
final, or otherwise issued a final determination that the plan 
termination is nullified.

SEC. 207. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS IN 
              BANKRUPTCY.

    (a) Section 204 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1054) as amended by section 121(b) of this Act, is 
further amended by redesignating subsection (j) as (k) and inserting a 
new subsection (j) to read as follows:
    ``(j)(1) In the case of a plan described in paragraph (3) which is 
maintained by an employer that is a debtor in a case under title 11, 
United States Code, or similar Federal or State law, no amendment of 
the plan which increases the liabilities of the plan by reason of any 
increase in benefits, any change in the accrual of benefits, or any 
change in the rate at which benefits become nonforfeitable under the 
plan, with respect to employees of the debtor, shall be effective prior 
to the effective date of such employer's plan of reorganization.
    ``(2) Paragraph (1) shall not apply to any plan amendment that--
            ``(A) the Secretary of the Treasury determines to be 
        reasonable and that provides for only de minimis increases in 
        the liabilities of the plan with respect to employees of the 
        debtor,
            ``(B) only repeals an amendment described in section 
        302(c)(8),
            ``(C) is required as a condition of qualification under 
        part I of subchapter D, of chapter 1, of the Internal Revenue 
        Code of 1986, or
            ``(D) was adopted prior to, or pursuant to a collective 
        bargaining agreement entered into prior to, the date on which 
        the employer became a debtor in a case under title 11, United 
        States Code, or similar federal or state law.
    ``(3) This subsection shall apply only to plans (other than 
multiemployer plans) covered under section 4021 of this Act for which 
the funded current liability percentage (within the meaning of section 
302(d)(8)(B) of this Act) is less than 100 percent after taking into 
account the effect of the amendment.
    ``(4) For purposes of this subsection, `employer' has the meaning 
set forth in section 302(c)(11)(A), without regard to section 
302(c)(11)(B).''
    (b) Section 401(a) of the Internal Revenue Code of 1986, as amended 
by section 101(b) of this Act, is further amended by adding at the end 
thereof a new paragraph (33) to read as follows:
            ``(33) Prohibition on benefit increases while sponsor is in 
        bankruptcy.--
                    ``(A) In general.--A trust shall not constitute a 
                qualified trust under this section if the plan of which 
                such trust is a part is amended while the employer is a 
                debtor in a case under title 11, United States Code, or 
                similar Federal or State law, where such amendment 
                increases liabilities of the plan by reason of any 
                increase in benefits, any change in the accrual of 
                benefits, or any change in the rate at which benefits 
                become nonforfietable under the plan, with respect to 
                employees of the debtor, and is effective prior to the 
                effective date of such employer's plan of 
                reorganization.
                    ``(B) Exceptions.--This paragraph shall not apply 
                to any plan amendment that--
                            ``(i) the Secretary determines to be 
                        reasonable and that provides for only de 
                        minimis increases in the liabilities of the 
                        plan with respect to employees of the debtor,
                            ``(ii) only repeals an amendment described 
                        in subsection 412(c)(8),
                            ``(iii) is required as a condition of 
                        qualification under this part, or
                            ``(iv) was adopted prior to the date on 
                        which the employer became a debtor in a case 
                        under title 11, United Stated Code, or similar 
                        Federal or State law.
                    ``(C) Plans to which this paragraph applies.--This 
                paragraph shall apply only to plans (other than 
                multiemployer plans) covered under Section 4021 of the 
                Employee Retirement Income Security Act of 1974 for 
                which the funded current liability percentage (within 
                the meaning of section 412(l)(8)(B)) is less than 100 
                percent after taking into account the effect of the 
                amendment.
                    ``(D) Definitions.--For purposes of this paragraph, 
                `employer' has the meaning set forth in section 
                412(c)(11)(A), without regard to section 
                412(c)(11)(B).''
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to plan amendments adopted on or after the date 
of enactment of this Act.

SEC. 208. SUBSTANTIAL OWNER BENEFITS.

    (A) Modification of Phase In of Guarantee.--Section 4022(b)(5) is 
amended by revising subparagraphs (B) and (C) to read as follows:
                    ``(B) For purposes of this title, the term 
                `majority owner' has the same meaning as the term 
                `substantial owner', except that `50 percent or more' 
                shall be substituted for `more than 10 percent' 
                wherever such phrase appears in subparagraph (A) of 
                this paragraph.
                    ``(C) In the case of a participant who is a 
                majority owner, the amount of benefits guaranteed under 
                this section shall not exceed the product of--
                            ``(i) a fraction (not to exceed 1) the 
                        numerator of which is the number of years from 
                        the later of the effective date or the adoption 
                        date of the plan, and the denominator of which 
                        is 30, and
                            ``(ii) the amount of the majority owner's 
                        monthly benefits guaranteed under subsection 
                        (a) (as limited by paragraph (3) of this 
                        subsection).''
    (b) Modification of Allocation of Assets.--
            (1) Section 4044(a)(4)(B) is revised by adding ``(C)'' 
        after ``section 4022(b)(5)''.
            (2) Section 4044(b) is revised--
                    (A) by adding ``(4),'' before ``(5)'' in paragraph 
                (2), and
                    (B) by renumbering paragraphs (3) through (6) as 
                (4) through (7), respectively, and inserting a new 
                paragraph (3) to read as follows:
            ``(3) If assets available for allocation under paragraph 
        (4) of subsection (a) are insufficient to satisfy in full the 
        benefits of all individuals who are described in that 
        paragraph, the assets shall be allocated first to benefits 
        described in subparagraph (A) of that paragraph. Any remaining 
        assets shall then be allocated to subparagraph (B). If assets 
        allocated to subparagraph (B) are insufficient to satisfy in 
        full the benefits in that subparagraph, the assets shall be 
        allocated pro rata among individuals on the basis of the 
        present value (as of the termination date) of their respective 
        benefits described in that subparagraph.''
    (c) Effective Date.--The amendments made by this section shall be 
effective for plan terminations under section 4041(c) with respect to 
which notices of intent to terminate are provided under section 
4041(a)(2), or under section 4042 with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

SEC. 209. PHASE-OUT OF VARIABLE RATE PREMIUM CAP.

    (a) Subparagraph (E) of section 4006(a)(3) of the Employees 
Retirement Income Security Act of 1974 is amended by deleting clause 
(iv) and redesignating clause (v) as clause (iv).
    (b) Effective Date.--The amendments made by this section shall be 
effective on the date of enactment of this Act, except that, for plan 
years beginning on or after July 1, 1994 and before July 1, 1996, the 
additional premium payable with respect to any participant by reason of 
this amendment shall not exceed the sum of--
            (1) $53, and
            (2) the excess (if any) of the amount determined under 
        clause (ii) of section 4006(a)(3)(E) of the Employee Retirement 
        Income Security Act of 1974 over $53 multiplied by the 
        applicable percentage. For purposes of this clause, the 
        applicable percentage shall be as follows:

                                                                        
                  Plan year beginning:                                  
                                                          The applicable
        on or after                  but before           percentage is:
                                                                        
July 1, 1994...............  July 1, 1995..............              20 
July 1, 1995...............  July 1, 1996..............              60 
                                                                        

                    TITLE III--PARTICIPANT SERVICES

SEC. 301. DISCLOSURE TO PARTICIPANTS.

    (a) Participant Notice Requirement.--Subtitle A of title IV of the 
Employee Retirement Income Security Act of 1974, as amended by section 
203 of this Act, is further amended by adding at the end thereof a new 
section 4011 to read as follows:

``SEC. 4011. NOTICE TO PARTICIPANTS.

    ``The plan administrator of a plan subject to the additional 
premium under section 4006(a)(3)(E) shall provide, in a form and manner 
and at such time as prescribed in regulations of the corporation, 
notice to plan participants and beneficiaries of the plan's funding 
status and the limits on the corporation's guaranty should the plan 
terminate while underfunded. Such notice shall be written in a manner 
so as to be understood by the average plan participant.''
    (b) Clerical Amendment.--The table of contents contained in section 
1 of such Act is amended by inserting after the term relating to 
section 4010 (as added by section 203 of this Act) the following new 
item:

``SEC. 4011. NOTICE TO PARTICIPANTS.''

    (c) Effective Date.--The amendment made by this section shall be 
effective for plan years beginning after the date of enactment of this 
Act.

SEC. 302. MISSING PARTICIPANTS.

    (a) Subtitle B of title IV of the Employee Retirement Income 
Security Act of 1974 is amended by adding a new section 4031 at the end 
thereof to read as follows:

``SEC. 4031. MISSING PARTICIPANTS.

    ``(a) General Rule.--
            ``(1) Payment to the corporation.--A plan administrator 
        satisfies section 4041(b)(3)(A) in the case of a missing 
        participant only if the plan administrator--
                    ``(A) transfers the participant's designated 
                benefit to the corporation or purchaser an irrevocable 
                commitment from an insurer in accordance with clause 
                (i) of section 4041(b)(3)(A), and
                     ``(B) provides the corporation such information 
                and certifications with respect to such designated 
                benefits or irrevocable commitments as the corporation 
                shall specify.
            ``(2) Treatment of transferred assets.--A transfer to the 
        PBGC under this section shall be treated as a transfer of 
        assets from a terminated plan to the corporation as trustee, 
        and shall be held with assets of terminated plans for which the 
        corporation is trustee under section 4042, subject to the rules 
        set out in that section.
            ``(3) Payment by the corporation.--After a missing 
        participant whose designated benefit was transferred to the 
        corporation is located--
                    ``(A) if the plan could have distributed the 
                benefit of a missing participant in a single sum 
                without participant or spousal consent under section 
                205(g), the corporation shall pay the participant or 
                beneficiary a single sum benefit equal to the 
                designated benefit paid the corporation plus interest 
                as specified by the corporation.
                    ``(B) in the case of any other missing participant, 
                the corporation shall pay a benefit based on the 
                designated benefit and the assumptions prescribed by 
                the corporation at the time that the corporation 
                received the designated benefit. The corporation shall 
                make such payments available in the same forms and at 
                the same times as a guaranteed benefit under section 
                4022 would be available to be paid, except that the 
                corporation may make a benefit available in the form of 
                a single sum if the plan provided a single sum benefit 
                (other than a single sum described in subsection 
                (b)(2)(A)).
    ``(b) Definitions.--
            ``(1) A `missing participant' means a participant or 
        beneficiary under a terminating plan whom the plan 
        administrator cannot locate after a diligent search.
            ``(2) A `designated benefit' means the single sum benefit 
        the participant would receive--
                    ``(A) under the plan's assumptions, in the case of 
                a distribution that can be made without participant or 
                spousal consent under section 205(g);
                    ``(B) under the assumptions of the corporation in 
                effect on the date that the designated benefit is 
                transferred to the corporation, in the case of a plan 
                that does not pay any single sums other than those 
                described in subparagraph (A); or
                    ``(C) under the assumptions of the corporation or 
                of the plan, whichever provides the higher single sum, 
                in the case of a plan that does pay a single sum other 
                than those described in subparagraph (A).
    ``(c) Regulatory Authority.--The corporation shall prescribe such 
regulations as are necessary to carry out the purposes of this section, 
including rules as to what will be considered a diligent search, the 
amount payable to the corporation, and the amount to be paid by the 
corporation.''
    (b) Conforming Title IV Amendments.--
            (1) Amendment to section 4003.--Section 4003(a) of such Act 
        is amended by adding ``and whether section 4031(a) has been 
        satisfied'' at the end of the second sentence.
            (2) Amendment to section 4005.--Section 4005(b)(2)(A) of 
        such Act is amended by adding ``or benefits payable under 
        section 4031'' after ``section 4022A''.
            (3) Amendment to section 4041.--Section 4041(b)(3)(A)(ii) 
        of such Act is amended by adding a sentence at the end thereof 
        to read as follows: ``A transfer of assets to the corporation 
        in accordance with section 4031 on behalf of a missing 
        participant shall satisfy this subparagraph with respect to 
        such participant.''
    (c) Conforming ERISA Amendments.--
            (1) The table of contents contained in section 1 of the 
        Employee Retirement Income Security Act of 1974 is amended by 
        inserting after the item related to section 4030 the following 
        new item:

``SEC. 4031. MISSING PARTICIPANTS.''

            (2) Section 206 of such Act is amended by adding at the end 
        thereof a new subsection (e) to read as follows:
    ``(e) Missing Participants in Terminated Plans.--In the case of a 
plan covered by title IV of the Employee Retirement Income Security Act 
of 1974, the plan shall provide that, upon termination of the plan, 
benefits of missing participants shall be treated in accordance with 
section 4031 of such Act.''
    (d) Conforming Internal Revenue Code Amendments.--Section 401(a) of 
the Internal Revenue Code of 1986, as amended by section 207 of this 
Act, is further amended by adding at the end thereof a new paragraph 
(34) to read as follows:
            ``(34) In the case of a plan covered by title IV of the 
        Employee Retirement Income Security Act of 1974, a trust 
        forming part of such plan shall not be treated as failing to 
        constitute a qualified trust under this section merely because 
        the pension plan of which such trust is a part, upon its 
        termination, transfers benefits of missing participants to the 
        Pension Benefit Guaranty Corporation in accordance with section 
        4031 of such Act.''
    (e) Effective Date.--The provisions of this section shall be 
effective with respect to distributions that occur in plan years 
commencing after final regulations implementing these provisions are 
adopted by the Pension Benefit Guaranty Corporation.

SEC. 303. MODIFICATION OF MAXIMUM GUARANTEE FOR DISABILITY BENEFITS.

    (a) Section 4022(b)(3) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. Sec. 1322(b)(3)) is amended by adding at the end 
thereof two new sentences to read as follows: ``The maximum guaranteed 
monthly benefit shall not be reduced solely on account of the age of a 
participant in the case of a benefit payable by reason of disability, 
provided that the participant satisfies the definition of disability 
under titles II and XVI of the Social Security Act, as amended, and the 
regulations thereunder. If a benefit payable by reason of disability is 
converted to an early or normal retirement benefit for reasons other 
than a change in the health of the participant, such early or normal 
retirement benefit shall be treated as a continuation of the benefit 
payable by reason of disability and this subparagraph shall continue to 
apply.''
    (b) Effective Date.--The amendments made by this section shall be 
effective for plan terminations under section 4041(c) with respect to 
which notices of intent to terminate are provided under section 
4041(a)(2), or under section 4042 with respect to which proceedings are 
instituted by the corporation, on or after the date of enactment of 
this Act.

                   TITLE IV--MISCELLANEOUS AMENDMENTS

SEC. 401. ERISA CITATION.

    (a) Section 404(g)(4) of the Internal Revenue Code of 1986 is 
amended by striking ``the Single Employer Pension Plan Amendments Act 
of 1986'' and inserting ``the Retirement Protection Act of 1993''.
    (b) Effective date.--The amendments made by this section shall be 
effective on the date of enactment of this Act.

SEC. 402. DEFINITION OF CONTRIBUTING SPONSOR.

    (a) Paragraph (13) of section 4001(a) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1301(a)) is amended by deleting 
``means a person--'' and all that follows and inserting in lieu thereof 
``means a person described in section 302(c)(11)(A) (without regard to 
section 302(c)(11)(B)) of this Act of section 412(c)(11(A) (without 
regard to section 412(c)(11)(B)) of the Internal Revenue Code of 
1986.''
    (b) Effective Date.--The amendments made by this section shall be 
effective as if included in the Pension Protection Act.

SEC. 403. RECOVERY RATIO UNDER ERISA SECTION 4022.

    (a) Section 4022(c)(3) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1322(c)(3)) is amended by deleting subparagraphs 
(A) and (B), and amending subparagraph (C)--
            (1) by deleting ``(C)'' and all that precedes clause (i) 
        and inserting in its place: ``For purposes of this section, the 
        term `recovery ratio' means, with respect to the termination of 
        such plan, the ratio of--''; and
            (2) by renumbering clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively.
    (b) Effective Date.--The amendments made by this section shall be 
effective as if included in the Pension Protection Act.

SEC. 404. DISTRESS TERMINATION CRITERIA FOR BANKING INSTITUTIONS.

    (a) Clarification of Distress Criterion.--Subclause (I) of section 
4041(c)(2)(B)(i) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1341(c)(2)(B)(i)) is amended by inserting after ``under any 
similar'' the words ``Federal law or''.
    (b) Effective Date.--The amendments made by this section shall be 
effective as if included in the Single-Employer Pension Plan Amendments 
Act of 1986.

SEC. 405. SINGLE SUM DISTRIBUTIONS.

    (a) Minimum Benefits.--
            (1) Section 411(a)(11) of the Internal Revenue Code of 1986 
        is amended by revising subparagraph (B) to read as follows:
                    ``(B) Determination of present value.--For purposes 
                of subparagraph (A), the present value shall be 
                calculated in accordance with section 417(e)(3).''
            (2) Section 417(e) of the Code is amended by revising 
        paragraph (3) to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i), the term `applicable mortality table' 
                        means the prevailing Commissioner's standard 
                        table (described in section 807(d)(5)(A)) that 
                        would be used to determine reserves for group 
                        annuity contracts issued on the date as of 
                        which present value is being determined 
                        (without regard to any other subparagraph of 
                        section 807(d)(5)), and the term `applicable 
                        interest rate' means the rate of interest on a 
                        30-year Treasury security (as of the date of 
                        distribution).
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect prior to the 
                enactment of the Retirement Protection Act of 1993, the 
                present value of any distribution made before the 
                earlier of (i) and the later of when a plan amendment 
                applying subparagraph (A) is adopted or made effective 
                or (ii) the first day of the first plan year beginning 
                after December 31, 1999 shall be calculated, for 
                purposes of paragraphs (1) and (2), using the interest 
                rate determined under the regulations of the Pension 
                Benefit Guaranty Corporation for determining the 
                present value of a lump sum distribution on plan 
                termination that were in effect on September 1, 1993 
                and under the provisions of the plan and the Code that 
                were in effect immediately before such enactment: 
                Provided, That such plan provisions satisfied section 
                417(e)(3) as in effect at such time.''
    (b) Maximum Benefits.--Section 415(b)(2)(E) of the Code is 
amended--
            (1) by redesignating clauses (ii) and (iii) as clauses 
        (iii) and (iv), respectively,
            (2) by revising clause (i) and adding a new clause (ii) to 
        read as follows:
                            ``(i) For purposes of adjusting any benefit 
                        or limitation under subparagraph (B), the 
                        interest rate assumption shall not be less than 
                        the greater of 5 percent or the rate specified 
                        in the plan: Provided, That for purposes of 
                        adjusting the benefit or limitation of any form 
                        of benefit subject to section 417(e)(3), the 
                        `applicable interest rate under section 
                        417(e)(3)' shall be substituted for `5 
                        percent'.
                            ``(ii) For purposes of adjusting any 
                        benefit or limitation under subparagraph (C), 
                        the interest rate assumption shall not be less 
                        than the greater of 5 percent or the rate 
                        specified in the plan.'', and
            (3) by adding a new clause (v) to read as follows:
                            ``(v) For purposes of adjusting any benefit 
                        or limitation under subparagraphs (B), (C), or 
                        (D), the prevailing Commissioner's standard 
                        table (described in section 807(d)(5)(A)) that 
                        would be used to determine reserves for group 
                        annuity contracts issued on the date as of 
                        which the determination is being made (without 
                        regard to any other subparagraph of section 
                        807(d)(5)) shall be applied.''
    (c)(1) Section 203(e) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(e)) is amended by revising paragraph (2) to 
read as follows:
            ``(2) For purposes of paragraph (1), the present value 
        shall be calculated in accordance with section 205(g)(3).''
    (2) Section 205(g) of such Act (29 U.S.C. 1055(g)) is amended by 
revising paragraph (3) to read as follows:
            ``(3) Determination of present value.--
                    ``(A) In general.--
                            ``(i) Present value.--Except as provided in 
                        subparagraph (B), for purposes of paragraphs 
                        (1) and (2), the present value shall not be 
                        less than the present value calculated by using 
                        the applicable mortality table and the 
                        applicable interest rate.
                            ``(ii) Definitions.--For purposes of clause 
                        (i), the term `applicable mortality table' 
                        means the prevailing Commissioner's standard 
                        table (described in section 807(d)(5)(A) of the 
                        Internal Revenue Code of 1986) that would be 
                        used to determine reserves for group annuity 
                        contracts issued on the date as of which 
                        present value is being determined (without 
                        regard to any other subparagraph of section 
                        807(d)(5) of the Internal Revenue Code of 
                        1986), and the term `applicable interest rate' 
                        means the rate of interest on a 30-year 
                        Treasury security (as of the date of 
                        distribution).
                    ``(B) Exception.--In the case of a distribution 
                from a plan that was adopted and in effect prior to the 
                enactment of the Retirement Protection Act of 1993, the 
                present value of any distribution made before the 
                earlier of (i) the later of when a plan amendment 
                applying subparagraph (A) is adopted or made effective 
                or (ii) the first day of the first plan year beginning 
                after December 31, 1999 shall be calculated, for 
                purposes of paragraphs (1) and (2), using the interest 
                rate determined under the regulations of the Pension 
                Benefit Guaranty Corporation for determining the 
                present value of a lump sum distribution on plan 
                termination that were in effect on September 1, 1993 
                and under the provisions of the plan and this Act that 
                were in effect immediately before such enactment, 
                Provided, That such plan provisions satisfied section 
                205(g)(3) as in effect at such time.''
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years and limitation years beginning after 
        December 31, 1994, except that an employer may elect to treat 
        the amendments made by this section as being effective on or 
        after the date of enactment.
            (2) No reduction in accrued benefits.--A participant's 
        accrued benefit shall not be considered to be reduced in 
        violation of section 411(d)(6) of the Internal Revenue Code of 
        1986 or section 204(g) of the Employee Retirement Income 
        Security Act of 1974 merely because (A) the benefit is 
        determined in accordance with section 417(e)(3)(A) of such 
        Code, as amended by this Act, or section 205(g)(3) of the 
        Employee Retirement Income Security Act of 1974, as amended by 
        this Act, or (B) the plan applies section 415(b)(2)(E) of such 
        Code, as amended by this Act.
            (3) Section 415.--
                    (A) No reduction required.--An accrued benefit 
                shall not be required to be reduced below the accrued 
                benefit as of the last day of the last plan year 
                beginning before January 1, 1995, merely because of the 
                amendments made by subsection (b).
                    (B) Timing of plan amendment.--A plan that operates 
                in accordance with the amendments made by subsection 
                (b) shall not be treated as failing to satisfy section 
                401(a) of the Internal Revenue Code of 1986 or as not 
                being operated in accordance with the provisions of the 
                plan until such date as the Secretary provides merely 
                because the plan has not been amended to include the 
                amendments made by subsection (b).

SEC. 406. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) Clarification of applicability of provision.--Section 
        412(n)(1) of the Internal Revenue Code of 1986 is amended by 
        striking ``to which this section applies'' and inserting 
        ``covered under section 4021 of the Employee Retirement Income 
        Security Act of 1974''.
            (2) Repeal of $1 million 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 provision.--Section 
        302(f)(1) of the Employee Retirement 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 section 
        4021 of this Act''.
            (2) Repeal of $1 million 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 Revenue 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 ADJUSTMENTS.

    (a) Cost-of-Living Adjustment for Compensation Limit.--Section 
401(a)(17)(B) of the Internal Revenue Code of 1986 is revised to read 
as follows:
                    ``(B) The Secretary shall adjust annually the 
                $150,000 amount in paragraph (A) for increases 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 separated 
                from service, the amount taken into account 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 prescribed 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 Security Act.
                    ``(B) Periods for adjustment of dollar 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 quarter 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 period 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 October 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 December 31, 1994.

SEC. 408. LIMITATION ON CROSS-TESTING IN DEFINED CONTRIBUTION PLANS.

    (a) Section 401(a)(5) of the Internal Revenue Code of 1986 is 
amended by adding at the end thereof a new subparagraph to read as 
follows:
                    ``(F)(i) A defined contribution plan (other than a 
                target benefit plan that satisfies regulations 
                prescribed by the Secretary) shall be considered as 
                satisfying the requirements of paragraph (4) only if 
                the contributions provided under the plan satisfy the 
                requirements of paragraph (4).
                    ``(ii) Two or more plans of an employer, at least 
                one of which is a defined contribution plan, shall be 
                considered as satisfying the requirements of paragraph 
                (4) when considered as a single plan only if the 
                contributions provided under the aggregated plans 
                satisfy the requirements of paragraph (4).''
    (b)(1) Section 415(b)(6)(A) of such Code is amended by inserting 
``that is a target benefit plan that satisfies regulations prescribed 
by the Secretary'' after ``defined contribution plan''.
    (2) Section 415(b)(6)(B) is amended by striking ``and''.
    (3) Subparagraph (C) of section 415(b)(6) is redesignated as 
subparagraph (D), and a new subparagraph (C) is inserted to read as 
follows:
            ``(C) employer-provided benefits under a defined 
        contribution plan, for purposes of section 410(b)(2), and''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for plan years beginning after September 30, 1993: Provided, 
however, That for defined contribution plans in existence on September 
30, 1993, the amendments shall be effective for plan years beginning on 
or after January 1, 1995.

SEC. 409. FUNDING OF RESTORED PLANS.

    Any changes made by this Act to section 412 of the Internal Revenue 
Code of 1986 or to part 3 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 shall not apply to a plan which 
is, on the date of enactment of this Act, subject to a restoration 
payment schedule order issued by the Pension Benefit Guaranty 
Corporation that meets the requirements of section 1.412(c)(1)-3 of the 
Treasury Regulations.

                        TITLE V--EFFECTIVE DATES

SEC. 501. EFFECTIVE DATES.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall be effective on the date of enactment of this Act.

                                 <all>

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