[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2563 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2563

To amend the Internal Revenue Code of 1986 and the Employee Retirement 
Income Security Act of 1974 with respect to the interest rate range for 
        additional funding requirements, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2002

 Mr. Grassley (for himself, Mr. Kerry, and Mr. Torricelli) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 and the Employee Retirement 
Income Security Act of 1974 with respect to the interest rate range for 
        additional funding requirements, 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. INTEREST RATE RANGE FOR ADDITIONAL FUNDING REQUIREMENTS.

    (a) In General.--Subclause (III) of section 412(l)(7)(C)(i) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``2002 or 2003'' in the text and inserting 
        ``2001, 2002, or 2003'', and
            (2) by striking ``2002 and 2003'' in the heading and 
        inserting ``2001, 2002, and 2003''.
    (b) Special Rule.--Subclause (III) of section 302(d)(7)(C)(i) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1082(d)(7)(C)(i)) is amended--
            (1) by striking ``2002 or 2003'' in the text and inserting 
        ``2001, 2002, or 2003'', and
            (2) by striking ``2002 and 2003'' in the heading and 
        inserting ``2001, 2002, and 2003''.
    (c) PBGC.--Subclause (IV) of section 4006(a)(3)(E)(iii) of such Act 
(29 U.S.C. 1306(a)(3)(E)(iii)) is amended to read as follows--
            ``(IV) In the case of plan years beginning after December 
        31, 2001, and before January 1, 2004, subclause (II) shall be 
        applied by substituting `100 percent' for `85 percent' and by 
        substituting `115 percent' for `100 percent'. Subclause (III) 
        shall be applied for such years without regard to the preceding 
        sentence. Any reference to this clause or this subparagraph by 
        any other sections or subsections (other than sections 4005, 
        4010, 4011 and 4043) shall be treated as a reference to this 
        clause or this subparagraph without regard to this 
        subclause.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 405 of the Job 
Creation and Worker Assistance Act of 2002.

SEC. 2. AMENDMENTS TO RETIREMENT PROTECTION ACT OF 1994.

    (a) Transition Rule Made Permanent.--Paragraph (1) of section 
769(c) of the Retirement Protection Act of 1994 is amended--
            (1) by striking ``transition'' each place it appears in the 
        heading and the text, and
            (2) by striking ``for any plan year beginning after 1996 
        and before 2010''.
    (b) Special Rules.--Paragraph (2) of section 769(c) of the 
Retirement Protection Act of 1994 is amended to read as follows:
            ``(2) Special rules.--The rules described in this paragraph 
        are as follows:
                    ``(A) For purposes of section 412(l)(9)(A) of the 
                Internal Revenue Code of 1986 and section 302(d)(9)(A) 
                of the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 90 percent.
                    ``(B) For purposes of section 412(m) of the 
                Internal Revenue Code of 1986 and section 302(e) of the 
                Employee Retirement Income Security Act of 1974, the 
                funded current liability percentage for any plan year 
                shall be treated as not less than 100 percent.
                    ``(C) For purposes of determining unfunded vested 
                benefits under section 4006(a)(3)(E)(iii) of the 
                Employee Retirement Income Security Act of 1974, the 
                mortality table shall be the mortality table used by 
                the plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2001.
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