109 HR 2233 IH: Pension Fairness and Full Disclosure Act of 2005
U.S. House of Representatives
2005-05-10
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of contents
(a)This Act may be cited as the Pension Fairness and Full Disclosure Act of 2005
.
(b)The table of contents is as follows:
Sec. 1. Short title and table of contents
Sec. 2. Findings and purpose
Title I—Fairness in plan terminations and conversions
Sec. 101. Termination fairness standard for nonqualified deferred compensation plans in connection with pension plan terminations based on bankruptcy reorganization or in connection with conversions to cash balance plans
Sec. 102. Excise tax on funding nonqualified deferred compensation plans in the event of a pension plan termination based on bankruptcy reorganization or in the event of a conversion to a cash balance plan
Title II—Fairness in funding
Sec. 201. Prohibition under ERISA against funding nonqualified deferred compensation plans while maintaining underfunded defined benefit plans
Sec. 202. Excise tax on funding nonqualified deferred compensation plans while maintaining underfunded defined benefit plans
Title III—Fairness in disclosure
Sec. 301. Disclosure with respect to benefits under nonqualified deferred compensation plans
2.
(a)The Congress finds as follows:
(1)The pension system sponsored by private employers is in a weakened state due to industry-wide crises, changing market forces, and the pressures of globalization.
(2)Employers increasingly are terminating or reducing the benefits provided under traditional defined benefit pension plans.
(3)Over 44,000,000 workers, retirees, and their families depend on defined benefit pension plans as a critical component of their retirement security in addition to Social Security.
(4)Defined benefit pension plans are currently estimated to be underfunded by over $450,000,000,000, and the Pension Benefit Guaranty Corporation, the agency that insures traditional pensions, had a 2004 deficit of over $23,000,000,000.
(5)The Congress in enacting the Employee Retirement Income Security Act of 1974 intended employers to adequately fund their pension plans and did not intend for the Pension Benefit Guaranty Corporation to be used as a means for restructuring companies to escape their unfunded pension liabilities or circumvent collective bargaining obligations.
(6)Cash balance pension plans were created to reduce traditional defined benefit pension obligations without statutory authorization, and adequate standards do not exist to adequately protect the pensions of pension plan participants, particularly older participants.
(7)Corporate executives often preserve or enhance executive pension and other benefits at the same time the benefits of non-highly paid employees are reduced.
(b)It is the purpose of this Act to better protect the retirement benefits afforded to workers and retirees by protecting the solvency of the Pension Benefit Guaranty Corporation and ensuring equitable treatment of corporate executives as compared to treatment provided to other employees when restructuring employers shift unfunded pension liabilities onto the Pension Benefit Guaranty Corporation or convert to cash balance pension plans without adequately protecting the retirement security of older workers.
<enum>I</enum><header>Fairness in plan terminations and conversions</header>
<section id="H4950742F39994098009CBDF27B005314"><enum>101.</enum><header>Termination fairness standard for nonqualified deferred compensation plans in connection with pension plan terminations based on bankruptcy reorganization or in connection with conversions to cash balance plans</header>
<subsection id="HF0EF7F712325426B9137A8BB5E4D920"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 206 of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block act-name="Employee" id="HFD0BFF608B4B43B2A78CAE2500537F83">
<subsection id="HD40A9512FE0F431B814D0786B9D59DBE"><enum>(g)</enum><header>Termination fairness standard for nonqualified deferred compensation plans in connection with pension plan terminations based on bankruptcy reorganization or in connection with conversions to cash balance plans</header>
<paragraph id="H923A70805CEF4C129437A3149088208D"><enum>(1)</enum><header>In general</header><text>In any case in which a corporation is a plan sponsor of a defined benefit plan with respect to which a plan amendment is adopted that has the effect of—</text>
<subparagraph id="HCE40C22EFCA0456CA462D627E77FE52"><enum>(A)</enum><text>implementing a distress termination of the plan under section 4041(c) based on bankruptcy reorganization or a termination of the plan initiated by the Pension Benefit Guaranty Corporation under section 4042 based on bankruptcy reorganization, in any case in which the plan is not sufficient for guaranteed benefits (within the meaning of section 4041(d)(2)) as of the proposed termination date, or</text></subparagraph>
<subparagraph id="H15208494D01E4B50B76777653E40D4AF"><enum>(B)</enum><text>converting such plan to a cash balance plan, in any case in which the amendment—</text>
<clause id="H51CBA3F7419A441E862FCECE2668DF84"><enum>(i)</enum><text>results in a significant reduction in the rate of future benefit accruals (within the meaning of section 204(h)(1)) of participants with at least 10 years of service under the plan, or</text></clause>
<clause id="H646E8233D825410D8315C6005516E7E9"><enum>(ii)</enum><text>does not provide for an election by affected participants with at least 10 years of service under the plan (and their beneficiaries) to retain coverage under the terms of the plan as in effect immediately prior to the amendment,</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">any covered deferred compensation plan established or maintained by such plan sponsor after the date of the adoption of such plan amendment shall meet the termination fairness standard of this subsection with respect to such plan amendment.</continuation-text></paragraph>
<paragraph id="H817D7385849C422F85F73B1E58B1DF67"><enum>(2)</enum><header>Termination fairness standard</header><text display-inline="yes-display-inline">A covered deferred compensation plan established or maintained by a plan sponsor described in paragraph (1) meets the termination fairness standard of this subsection with respect to a plan amendment described in paragraph (1) if, during the 5-year period beginning on the date of the adoption of such plan amendment—</text>
<subparagraph id="H3218037E9FE74DC88892698FE7737FE8"><enum>(A)</enum><text>no amount of deferred compensation accrues to a disqualified individual under the terms of such covered deferred compensation plan (irrespective of whether the accrual in deferred compensation is expressed in the form of a promise, a guarantee, or any other representation), and</text></subparagraph>
<subparagraph id="H6ECABBC863454F85B805DB168E1B1CAE"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a covered deferred compensation plan established during or after the 1-year period preceding the notice date (or any amendment to a covered deferred compensation plan if such amendment is adopted during or after such 1-year period), no distribution of accrued deferred compensation is made under such plan (or such amendment) to a disqualified individual. </text></subparagraph></paragraph>
<paragraph id="H98047A62941649568797A5464983DD78"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text>
<subparagraph id="H88A84DC8FC944731A8A5BBEA834C4B58"><enum>(A)</enum><header>Cash balance plan</header>
<clause id="H8686FA1EB3F84EBDBA4B4B2D48A64837"><enum>(i)</enum><header>In general</header><text>The term <term>cash balance plan</term> means a defined benefit plan under which the accrued benefit is expressed to participants and beneficiaries as an amount other than an annual benefit commencing at normal retirement age.</text></clause>
<clause id="H07B7FDE9285649628648003BD59E9CCA"><enum>(ii)</enum><header>Regulations to include similar or other hybrid plans</header><text>The Secretary shall issue regulations which provide that a defined benefit plan (or any portion of such a plan) which has an effect similar to a plan described in clause (i) shall be treated as a cash balance plan. Such regulations may provide that if a plan sponsor represents in communications to participants and beneficiaries that a plan amendment results in a plan being described in the preceding sentence, such plan shall be treated as a cash balance plan.</text></clause></subparagraph>
<subparagraph id="H2B76F64E8343411FAA659727FDD6395"><enum>(B)</enum><header>Notice date</header><text>The term <term>notice date</term> means, with respect to an amendment described in paragraph (1)—</text>
<clause id="HF3723C175B884682812D35CFED18000"><enum>(i)</enum><text>in the case of a distress termination under section 4041(d), the date of the advance notice of intent to terminate provided pursuant to section 4041(a)(2),</text></clause>
<clause id="H90584315C8054536ADD3AD016CC9F288"><enum>(ii)</enum><text>in the case of a termination initiated by the Pension Benefit Guaranty Corporation under section 4042, the date of the application to the court under section 4042(c), and</text></clause>
<clause id="HCDB13D90A8224E559BB600ACC8DA95FA"><enum>(iii)</enum><text>in the case of a conversion to a cash balance plan, the date of the adoption of the amendment.</text></clause></subparagraph>
<subparagraph id="HC95133F7E1D84820BCB804CC15C93DAA"><enum>(C)</enum><header>Covered deferred compensation plan</header>
<clause id="HB65B4A85E99045D7B951091C170933A"><enum>(i)</enum><header>In general</header><text>The term <term>covered deferred compensation plan</term> means any plan providing for the deferral of compensation of a disqualified individual, whether or not—</text>
<subclause id="HDA61AECF670E46F4863097E392135152"><enum>(I)</enum><text>compensation of the disqualified individual which is deferred under such plan is subject to substantial risk of forfeiture,</text></subclause>
<subclause id="H3A389B7A718D4881AA1270396B0239CA"><enum>(II)</enum><text>the disqualified individual’s rights to the compensation deferred under the plan are no greater than the rights of a general creditor of the plan sponsor,</text></subclause>
<subclause id="H59491EEB4B5F4E0DB21BB3BC58FC12BD"><enum>(III)</enum><text>all amounts set aside (directly or indirectly) for purposes of paying the deferred compensation (including income), and all income attributable to such amounts, remain (until made available to the disqualified individual or other beneficiary) solely the property of the plan sponsor (without being restricted to the provision of benefits under the plan),</text></subclause>
<subclause id="H81F9C67310894CA6AD717F9B9F0027BA"><enum>(IV)</enum><text>the amounts referred to in subclause (III) are available to satisfy the claims of the plan sponsor’s general creditors at all times (not merely after bankruptcy or insolvency), and</text></subclause>
<subclause id="HAE9D4177BA094CE0868C6D039858114D"><enum>(V)</enum><text>some or all of the compensation of the disqualified individual which is deferred under such plan is guaranteed by an insurance company, insurance service, or other similar organization.</text></subclause></clause>
<clause id="H563C35D7FF91451EBCEB2860C36649C1"><enum>(ii)</enum><header>Exception for qualified plans</header><text>Such term shall not include a plan that is—</text>
<subclause id="HBEBDFA35CB7F46A9893DD24CF9B98DD4"><enum>(I)</enum><text>described in <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(g)(5)(A)</external-xref> of the Internal Revenue Code of 1986, or</text></subclause>
<subclause id="H20969E8174D64FBE98C4E51F1E1D1357"><enum>(II)</enum><text>an eligible deferred compensation plan (as defined in section 457(b) of such Code) of an eligible employer described in section 457(e)(1)(A) of such Code.</text></subclause></clause>
<clause id="H35D4A131BFE144CFB8EACFF2B9B62D9"><enum>(iii)</enum><header>Plan includes arrangements, etc</header><text>For purposes of this subparagraph, the term <term>plan</term> includes any agreement or arrangement.</text></clause></subparagraph>
<subparagraph id="H112D243B0C9E43C8962E92C3841C2CA5"><enum>(D)</enum><header>Disqualified individual</header><text>The term <term>disqualified individual</term> means a director or executive officer of the plan sponsor.</text></subparagraph>
<subparagraph id="HBD7612177D294240B92B8B2680273C4C"><enum>(E)</enum><header>Termination based on bankruptcy reorganization</header><text display-inline="yes-display-inline">A termination of a plan which is a distress termination under section 4041(c) or a termination instituted by the Pension Benefit Guaranty Corporation under section 4042 is <quote>based on bankruptcy reorganization</quote> if such termination is based in whole or in part on the filing, by or against any person who is a contributing sponsor of such plan or a member of such sponsor’s controlled group, of a petition seeking reorganization in a case under title 11, United States Code, or under any similar law of a State or political subdivision of a State (or such a case in which liquidation is sought has been converted to a case in which reorganization is sought).</text></subparagraph>
<subparagraph id="HFA8BDFE0E48543218C80A1EE20873B67"><enum>(F)</enum><header>Title IV terminology</header><text>Any term used in this subsection which is defined in section 4001(a) shall have the meaning provided such term in section 4001(a).</text></subparagraph></paragraph>
<paragraph id="HD827D4F5A72B4CE399A152F48639243F"><enum>(4)</enum><header>Special rules</header>
<subparagraph id="HBA946142833E494DB0A3487D9447A6D6"><enum>(A)</enum><header>Coordinated benefits</header><text>If the benefits of 2 or more defined benefit plans established or maintained by an employer are coordinated in such a manner as to have the effect of the adoption of an amendment described in paragraph (1), the sponsor of the defined benefit plan or plans providing for such coordination shall be treated as having adopted such a plan amendment as of the date such coordination begins.</text></subparagraph>
<subparagraph id="H0800141E244F43F29BCFD37BFDC1DF91"><enum>(B)</enum><header>Multiple amendments</header><text>The Secretary shall issue regulations to prevent the avoidance of the purposes of this subsection through the use of 2 or more plan amendments rather than a single amendment.</text></subparagraph>
<subparagraph id="HD92E82C53EAF4A47A3D40040B7073509"><enum>(C)</enum><header>Controlled groups, etc</header><text>For purposes of this subsection, all persons treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 shall be treated as 1 employer.</text></subparagraph>
<subparagraph id="H3E6CFEF818114EA8A3E3C9CEB196DB62"><enum>(D)</enum><header>Treatment of earnings</header><text>References to deferred compensation shall be treated as including references to income attributable to such compensation or such income.</text></subparagraph></paragraph>
<paragraph id="H4CF8274D432F402B00955DF8F305703C"><enum>(5)</enum><header>Coordination</header><text display-inline="yes-display-inline">The Secretary and the Secretary of the Treasury shall ensure, through the execution of an interagency memorandum of understanding among such Secretaries, that regulations, rulings, and interpretations issued by such Secretaries relating to the same matter over which both such Secretaries have responsibility under this subsection and <external-xref legal-doc="usc" parsable-cite="usc/26/4980H">section 4980H</external-xref> of the Internal Revenue Code of 1986 are administered so as to have the same effect at all times.</text></paragraph>
<paragraph id="H50AF3E7492054C3FB464D22D1BBA5818"><enum>(6)</enum><header>Effect of waiver granted by Secretary of the Treasury</header><text>To the extent that any requirement of the termination fairness standard of <external-xref legal-doc="usc" parsable-cite="usc/26/4980H">section 4980H(a)(2)</external-xref> of the Internal Revenue Code of 1986 is waived by the Secretary of the Treasury with respect to any disqualified individual under section 4980H(g) of such Code in the case of any plan amendment having the effect of a termination described in paragraph (1)(A) of this subsection, such requirement under the termination fairness standard of paragraph (2) of this subsection shall not apply with respect to such individual in the case of such plan amendment.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H807C48EBBEDB4AE200D48696AF05354B"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to—</text>
<paragraph id="HFFB06EC0DB674E9A8842E10674D376B"><enum>(1)</enum><text>plan amendments adopted on or after May 10, 2005, and</text></paragraph>
<paragraph id="H8D8F86EB71E04227B92B26053B4F3997"><enum>(2)</enum><text>plan amendments adopted before such date implementing a plan termination as described in section 206(g)(1) of the Employee Retirement Income Security Act of 1974 (as added by this section) based on a bankruptcy reorganization in a case under title 11 of the United States Code (or under any similar law of a State or a political subdivision of a State) pending on such date.</text></paragraph></subsection></section>
<section id="HDC5AF08656A04D8D9501F4A1E59517D"><enum>102.</enum><header>Excise tax on funding nonqualified deferred compensation plans in the event of a pension plan termination based on bankruptcy reorganization or in the event of a conversion to a cash balance plan</header>
<subsection id="HD06B9FB7A82149249F6FE30184087FDF"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/43">Chapter 43</external-xref> of the Internal Revenue Code of 1986 (relating to qualified pension, etc., plans) is amended by adding at the end the following new section:</text>
<quoted-block id="H8DF2F267E06B4AD286F7482409FBBFCA">
<section id="H58A4415FFE16405AB26032BB6CBDDED"><enum>4980H.</enum><header>Funding nonqualified deferred compensation plans</header>
<subsection id="H27D7412736CA4429B0BAEF11D93C4583"><enum>(a)</enum><header>Imposition of tax in the event of a pension plan termination based on bankruptcy reorganization or in the event of a conversion of a pension plan to a cash balance plan</header>
<paragraph id="HC4EE1C5146C044E0BC9F387063B2F452"><enum>(1)</enum><header>In general</header><text>In any case in which a corporation is a plan sponsor of a defined benefit plan with respect to which an plan amendment is adopted that has the effect of—</text>
<subparagraph id="H74C6004629C446CA86A36507D2C7595C"><enum>(A)</enum><text>implementing a distress termination of the plan under section 4041(c) of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of 1974</act-name> based on bankruptcy reorganization or a termination of the plan initiated by the Pension Benefit Guaranty Corporation under section 4042 of such Act based on bankruptcy reorganization, in any case in which the plan is not sufficient for guaranteed benefits (within the meaning of section 4041(d)(2) of such Act) as of the proposed termination date, or</text></subparagraph>
<subparagraph id="H8E73A5721A8D45BD99CA8905A65060FA"><enum>(B)</enum><text>converting such plan to a cash balance plan, in any case in which the amendment—</text>
<clause id="H236BE1ED127940629B5E0018DD40D2A9"><enum>(i)</enum><text>results in a significant reduction in the rate of future benefit accruals (within the meaning of section 4980F(e)(1)) of participants with at least 10 years of service under the plan, or</text></clause>
<clause id="H9701ABDCA6584F06872D016B972EF229"><enum>(ii)</enum><text>does not provide for an election by affected participants with at least 10 years of service under the plan (and their beneficiaries) to retain coverage under the terms of the plan as in effect immediately prior to the amendment,</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">there is hereby imposed a tax on any failure to meet the termination fairness standard of paragraph (2) with respect to such plan amendment.</continuation-text></paragraph>
<paragraph id="H750EA5652AB549E794D5128DD89787FA" display-inline="no-display-inline"><enum>(2)</enum><header>Termination fairness standard</header><text display-inline="yes-display-inline">A covered deferred compensation plan established or maintained by a plan sponsor described in paragraph (1) meets the termination fairness standard of this subsection with respect to a plan amendment described in paragraph (1) if, during the 5-year period beginning on the date of the adoption of such plan amendment—</text>
<subparagraph id="H3F0223968F634341A7A3729F25243469"><enum>(A)</enum><text>no amount of deferred compensation accrues to a disqualified individual under the terms of such covered deferred compensation plan, irrespective of whether the accrual in deferred compensation is expressed in the form of a promise, a guarantee, or any other representation, and</text></subparagraph>
<subparagraph id="HB421D2DCF195489EA7AA6EBAC000181C"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a covered deferred compensation plan established during or after the 1-year period preceding the notice date (or any amendment to a covered deferred compensation plan if such amendment is adopted during or after such 1-year period), no distribution of accrued deferred compensation is made under such plan (or such amendment) to a disqualified individual. </text></subparagraph></paragraph></subsection>
<subsection id="H6ADC88FFF4A34725AD67DE1C1900B4BD"><enum>(b)</enum><header>Amount of tax</header><text>The amount of the tax imposed by subsection (a) shall be equal to the amount of the accrual described in subsection (a)(2)(A) comprising the failure or the distribution described in subsection (a)(2)(B) comprising the failure.</text></subsection>
<subsection id="H188EFBA1B73D4EE58D8173E8E125CB8"><enum>(c)</enum><header>Liability for tax</header><text>The plan sponsor shall be liable for the tax imposed by this section.</text></subsection>
<subsection id="HC009FE79295A42088BB201AA5E00AD52"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="HCF4B4F5DB55B455396E535F9B5C8C9C6"><enum>(1)</enum><header>Cash balance plan</header>
<subparagraph id="HABE06EBAD3914074AF76D5F0F4F6AD73"><enum>(A)</enum><header>In general</header><text>The term <term>cash balance plan</term> means a defined benefit plan under which the accrued benefit is expressed to participants and beneficiaries as an amount other than an annual benefit commencing at normal retirement age.</text></subparagraph>
<subparagraph id="H365DEA240B894BB7AFA361863CF8426"><enum>(B)</enum><header>Regulations to include similar or other hybrid plans</header><text>The Secretary shall issue regulations which provide that a defined benefit plan (or any portion of such a plan) which has an effect similar to a plan described in subparagraph (A) shall be treated as a cash balance plan. Such regulations may provide that if a plan sponsor represents in communications to participants and beneficiaries that a plan amendment results in a plan being described in the preceding sentence, such plan shall be treated as a cash balance plan.</text></subparagraph></paragraph>
<paragraph id="HB7D0C82714B041918BA2422894EE9171"><enum>(2)</enum><header>Notice date</header><text>The term <term>notice date</term> means with respect to an amendment described in subsection (a)(1)—</text>
<subparagraph id="HA3196819FC8049CA8126DEDD31F28EA7"><enum>(A)</enum><text>in the case of a distress termination under section 4041(d) of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of 1974</act-name>, the date of the advance notice of intent to terminate provided pursuant to section 4041(a)(2) of such Act,</text></subparagraph>
<subparagraph id="HCF572BB1B04C48C592FDD740D12355C2"><enum>(B)</enum><text>in the case of a termination initiated by the Pension Benefit Guaranty Corporation under section 4042 of such Act, the date of the application to the court under section 4042(c) of such Act, and</text></subparagraph>
<subparagraph id="H8434258DEAAD410EA3DC395E32EA6B9E"><enum>(C)</enum><text>in the case of a conversion to a cash balance plan, the date of the adoption of the amendment.</text></subparagraph></paragraph>
<paragraph id="H9224B5DA78D14DB690B6EBDA02C6332"><enum>(3)</enum><header>Covered deferred compensation plan</header>
<subparagraph id="HBEF642EBD4404B2394D4D2D5BBA1AFCA"><enum>(A)</enum><header>In general</header><text>The term <term>covered deferred compensation plan</term> means any plan providing for the deferral of compensation of a disqualified individual, whether or not—</text>
<clause id="H1C46AC9B54B3494DAB4808EE29D8F541"><enum>(i)</enum><text>compensation of the disqualified individual which is deferred under such plan is subject to substantial risk of forfeiture,</text></clause>
<clause id="H43C05F070EEB459389740810D9C973F1"><enum>(ii)</enum><text>the disqualified individual’s rights to the compensation deferred under the plan are no greater than the rights of a general creditor of the plan sponsor,</text></clause>
<clause id="H8CEFE8EB19E445CDACC7D14D6F62605F"><enum>(iii)</enum><text>all amounts set aside (directly or indirectly) for purposes of paying the deferred compensation, and all income attributable to such amounts, remain (until made available to the participant or other beneficiary) solely the property of the (without being restricted to the provision of benefits under the plan),</text></clause>
<clause id="HBB3896F18AD240C9B72E7C2B5212AD5F"><enum>(iv)</enum><text>the amounts referred to in clause (iii) are available to satisfy the claims of the plan sponsor’s general creditors at all times (not merely after bankruptcy or insolvency), and</text></clause>
<clause id="H071C4EEEDAEB4540AA9CFCF79E1803C"><enum>(v)</enum><text>some or all of the compensation of the disqualified individual which is deferred under such plan is guaranteed by an insurance company, insurance service, or other similar organization.</text></clause></subparagraph>
<subparagraph id="H12E06AD7C174418CB05EF8EB5BCEE33"><enum>(B)</enum><header>Exception for qualified plans</header><text>Such term shall not include a plan that is—</text>
<clause id="H40CAA8DBFC75460B85C0018B59BEF87"><enum>(i)</enum><text>described in section 219(g)(5)(A), or</text></clause>
<clause id="H4E12BF273C28417A9086EE5F00D03715"><enum>(ii)</enum><text>an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).</text></clause></subparagraph>
<subparagraph id="H9F80ECEC59F842B5996B8EA862A02B4B"><enum>(C)</enum><header>Plan includes arrangements, etc</header><text>For purposes of this paragraph, the term <term>plan</term> includes any agreement or arrangement.</text></subparagraph></paragraph>
<paragraph id="HAFA08B62B6AF42C99143C911D6D82D6C"><enum>(4)</enum><header>Disqualified individual</header><text>The term <term>disqualified individual</term> means a director or executive officer of the plan sponsor.</text></paragraph>
<paragraph id="HFC31289C8825454C871CF94F00695E16" display-inline="no-display-inline"><enum>(5)</enum><header>Termination based on bankruptcy reorganization</header><text display-inline="yes-display-inline">A termination of a plan which is a distress termination under section 4041(c) of the Employee Retirement Income Security Act of 1974 or a termination instituted by the Pension Benefit Guaranty Corporation under section 4042 of such Act is <quote>based on bankruptcy reorganization</quote> if such termination is based in whole or in part on the filing, by or against any person who is a contributing sponsor of such plan or a member of such sponsor’s controlled group, of a petition seeking reorganization in a case under title 11, United States Code, or under any similar law of a State or political subdivision of a State (or such a case in which liquidation is sought has been converted to a case in which reorganization is sought).</text></paragraph>
<paragraph id="H82FDBCCC16FB4C3AA309105702537837"><enum>(6)</enum><header>Title IV terminology</header><text>Any term used in this section which is defined in section 4001(a) of the Employee Retirement Income Security Act of 1974 shall have the meaning provided such term in such section 4001(a).</text></paragraph></subsection>
<subsection id="H8CCDDAABA8ED4B9F9BF6A5F59E5733BB"><enum>(e)</enum><header>Special rules</header>
<paragraph id="H75CC55795C97407EA3D3271426693F88"><enum>(1)</enum><header>Coordinated benefits</header><text>If the benefits of 2 or more defined benefit plans established or maintained by an employer are coordinated in such a manner as to have the effect of the adoption of an amendment described in subsection (a)(1), the sponsor of the defined benefit plan or plans providing for such coordination shall be treated as having adopted such a plan amendment as of the date such coordination begins.</text></paragraph>
<paragraph id="HE7CBAF5EBE614BB9A14D6400A26BE75B"><enum>(2)</enum><header>Multiple amendments</header><text>The Secretary shall issue regulations to prevent the avoidance of the purposes of this section through the use of 2 or more plan amendments rather than a single amendment.</text></paragraph>
<paragraph id="HE87B7AB88D074F1FAE2C34EDCB002D00"><enum>(3)</enum><header>Controlled groups, etc</header><text>For purposes of this section, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer.</text></paragraph>
<paragraph id="HB1C69BC5BBA94878BB0033A8F6816092"><enum>(4)</enum><header>Treatment of earnings</header><text>References to deferred compensation shall be treated as including references to income attributable to such compensation or such income.</text></paragraph></subsection>
<subsection id="H1F02CB43890746779EFD006E2512C0E8"><enum>(f)</enum><header>Coordination</header><text display-inline="yes-display-inline">The Secretary and the Secretary of Labor shall ensure, through the execution of an interagency memorandum of understanding among such Secretaries, that regulations, rulings, and interpretations issued by such Secretaries relating to the same matter over which both such Secretaries have responsibility under this section and section 206(g) of the Employee Retirement Income Security Act of 1974 are administered so as to have the same effect at all times.</text></subsection>
<subsection id="H56AF622AB8EA4DBCA6D023A36DEA5100"><enum>(g)</enum><header>Waiver</header>
<paragraph id="HBE83D00B41A146AE9E45863DBEA18787"><enum>(1)</enum><header>In general</header><text>In the case of any plan amendment having the effect of a termination described in subsection (a)(1)(A), the Secretary may waive the application of any requirement of the termination fairness standard of subsection (a)(2) with respect to any disqualified individual who first commences service for the plan sponsor after the notice date with respect to such plan amendment. The Secretary may grant any such waiver in the case of any such plan amendment with respect to any such disqualified individual only after consultation with the Pension Benefit Guaranty Corporation. The Secretary shall promptly notify the Secretary of Labor of any such waiver granted by the Secretary.</text></paragraph>
<paragraph id="H4A49508BFF164308BF9CF026A15647D"><enum>(2)</enum><header>Requirements for waiver</header><text>A waiver may be granted under paragraph (1) only—</text>
<subparagraph id="H5E14BD541769466D91D863A86E9B2E33"><enum>(A)</enum><text>upon the filing with the Secretary by the plan sponsor of an application for such waiver, in such form and manner as shall be prescribed in regulations of the Secretary,</text></subparagraph>
<subparagraph id="H3116A1D89B704A56B62C95E86D83A2F"><enum>(B)</enum><text>upon a showing, to the satisfaction of the Secretary, that such waiver is a business necessity for the plan sponsor, as determined under such regulations, and is in the interest of plan participants and beneficiaries, as determined under such regulations, and</text></subparagraph>
<subparagraph id="H7BBB3E9E3F714B37A776EC4FC43929F9"><enum>(C)</enum><text>after the participants, in such form and manner as shall be provided in such regulations, have been notified of the filing of the application for the waiver and have been provided a reasonable opportunity to provide in advance comments to the Secretary regarding the proposed waiver.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6358436495D44CE9BD19434E636065F5"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for chapter 43 of such Code is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H47B4B67B33A54DAB81F4E96DA7F6C8B7">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 4980H. Funding nonqualified deferred compensation plans</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H06407E1803D047C79580DB76FE60F399"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to—</text>
<paragraph id="H59067B9FB7AE4502A63E6330ED4B7828"><enum>(1)</enum><text>plan amendments adopted on or after May 10, 2005, and</text></paragraph>
<paragraph id="HD728A409676A4E68B1DE399B14361F04"><enum>(2)</enum><text>plan amendments adopted before such date implementing a plan termination as described in <external-xref legal-doc="usc" parsable-cite="usc/26/4980H">section 4980H(a)(1)(A)</external-xref> of the Internal Revenue Code of 1986 (as added by this section) based on a bankruptcy reorganization in a case under title 11 of the United States Code (or under any similar law of a State or a political subdivision of a State) pending on such date.</text></paragraph></subsection></section>
<enum>II</enum><header>Fairness in funding</header>
<section id="HADE6F5E038EF4FF1B0931FDA04F81500" section-type="subsequent-section"><enum>201.</enum><header>Prohibition under ERISA against funding nonqualified deferred compensation plans while maintaining underfunded defined benefit plans</header>
<subsection id="H69B1A42B0C2647C095A1326CC2AAED29"><enum>(a)</enum><header>In general</header><text>Part 3 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 is amended—</text>
<paragraph id="HEA86C4675F5846BBA0E8BE8D0026EAA6"><enum>(1)</enum><text>by redesignating section 308 as section 309; and</text></paragraph>
<paragraph id="HD82153CFC52E4796839D22DF100E9D9"><enum>(2)</enum><text>by inserting after section 307 the following new section:</text>
<quoted-block style="traditional" id="H515BF6554E1F4535A44209DB5C6B0012" display-inline="no-display-inline">
<section id="H6AC0F93D9B93422B8F0000C4E28C43F5"><enum>308.</enum><header>Funding requirements with respect to underfunded single-employer defined benefit plan violated by funding of covered deferred compensation plan</header>
<subsection id="HC4C0105AD99F4CC1928EDDAEF8000CA" display-inline="yes-display-inline"><enum> (a)</enum><text display-inline="yes-display-inline">In any case in which, as of the valuation date for any plan year of a defined benefit plan which is a single-employer plan, the funded current liability percentage of such plan is less than 75 percent, during the period beginning with such date and ending immediately before the valuation date for the following plan year—</text>
<paragraph id="H86C58D9BDBAE4AD1A2229C46712D6250"><enum>(1)</enum><text>the plan sponsor of such defined benefit plan (or any member of the plan sponsor’s controlled group) may not contribute to a covered deferred compensation plan maintained by the plan sponsor (or any such member), and</text></paragraph>
<paragraph id="HC837DE987C5C44FA8522E136D734C396"><enum>(2)</enum><text>a disqualified individual may not accrue any amount of deferred compensation under the terms of any covered deferred compensation plan maintained by the plan sponsor of such defined benefit plan (or by any member of the plan sponsor’s controlled group), irrespective of whether the accrual in deferred compensation is expressed in the form of a promise, a guarantee, or any other representation.</text></paragraph></subsection>
<subsection id="H8B45520623BF4F65AF70EAC50919DD00"><enum>(b)</enum><text>For purposes of this section—</text>
<paragraph id="H4A9CF2CA7F244C1FB717BDE497B07D50"><enum>(1)</enum><text>The term <quote>funded current liability percentage</quote> has the meaning provided in section 302(d)(8)(B).</text></paragraph>
<paragraph id="H56B8E764F162417A9242DDA324BF69"><enum>(2)</enum><text>The term <quote>covered deferred compensation plan</quote> has the meaning provided in section 206(g)(3)(C).</text></paragraph>
<paragraph id="HE62CC03C35D74E0DA5AB5CB688B6A392"><enum>(3)</enum><text>The term <quote>disqualifed individual</quote> has the meaning provided in section 206(g)(3)(D). </text></paragraph>
<paragraph id="H895C447C000C452EBFEE7B4FC29CA69E"><enum>(4)</enum><text>The term <quote>controlled group</quote> has the meaning provided in section 302(c)(11)(B)(ii). </text></paragraph></subsection>
<subsection id="HC5EC1FC4F3924AD300ECCDAC9530B335"><enum>(c)</enum><text>To the extent that a waiver is granted by the Secretary of the Treasury under <external-xref legal-doc="usc" parsable-cite="usc/26/4980H">section 4980H(b)(2)</external-xref> of the Internal Revenue Code of 1986 with respect to any contribution described in subsection (a)(1) or any accrual described in subsection (a)(2), the requirements of subsection (a) shall not apply with respect to such contribution or accrual.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HD00BC53DF3564A88BF13B7FCC065F4BF"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents in section 1 of such Act is amended by striking the item relating to section 308 and inserting the following new items:</text>
<quoted-block style="OLC" id="H8C0466031397426496DCEEFEF9F780A8" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H515BF6554E1F4535A44209DB5C6B0012" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H6AC0F93D9B93422B8F0000C4E28C43F5" level="section">Sec. 308. Funding requirements with respect to underfunded single-employer defined benefit plan violated by funding of covered deferred compensation plan</toc-entry>
<toc-entry level="section">Sec. 309. Effective dates</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF1DA7C7F6BFD4B1BA49B22F7B16B24FD"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply with respect to plan years beginning on or after January 1, 2006.</text></subsection></section>
<section id="H910FFB62D05B46D683441BD8BED0C292" section-type="subsequent-section" display-inline="no-display-inline"><enum>202.</enum><header>Excise tax on funding nonqualified deferred compensation plans while maintaining underfunded defined benefit plans</header>
<subsection id="H15301A83B9594E4B8D1E3742D192F569"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4980H">Section 4980H</external-xref> of the Internal Revenue Code of 1986 (as added by section 102 of this Act) is amended—</text>
<paragraph id="HF493F1D5D15144B982F81E802D2B5420"><enum>(1)</enum><text>by redesignating subsections (b) through (g) as subsections (c) through (h), respectively; and</text></paragraph>
<paragraph id="HD40ABBD9E74A4AD3A3DF354DE2946C07"><enum>(2)</enum><text>by inserting after subsection (a) the following new subsection:</text>
<quoted-block style="traditional" display-inline="no-display-inline" id="H67F14462C43445B3B1D207028F21F08F">
<subsection id="H0D674E90217E491C8035E88E11F92FE7"><enum>(b)</enum><header>Imposition of tax on funding of covered deferred compensation plan while maintaining underfunded defined benefit plan</header>
<paragraph id="HA518A63CEF9C4A098DC42E0074C8088D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In any case in which, as of the valuation date for any plan year of a defined benefit plan which is a single-employer plan, the funded current liability percentage of such plan is less than 75 percent, there is hereby imposed a tax on—</text>
<subparagraph id="HD946762357CB49EC9FE3F86157C400FD"><enum>(A)</enum><text>the contribution by the plan sponsor of such defined benefit plan (or any member of the plan sponsor’s controlled group), during the period beginning with such date and ending the the valuation date for the following plan year, of any amount to a covered deferred compensation plan maintained by the plan sponsor (or any such member), and</text></subparagraph>
<subparagraph id="H52F9C949FEAE4448BE67196975A1BD12"><enum>(B)</enum><text display-inline="yes-display-inline">the accrual, during such period, of any amount of deferred compensation to a disqualified individual under the terms of any covered deferred compensation plan maintained by the plan sponsor of such defined benefit plan, irrespective of whether the accrual in deferred compensation is expressed in the form of a promise, a guarantee, or any other representation.</text></subparagraph></paragraph>
<paragraph id="HB7C20A74E73941728922B0B6FB006E3B" display-inline="no-display-inline"><enum>(2)</enum><header>Waiver</header>
<subparagraph id="H2435B59426754D7A98713E00DCD81DE8"><enum>(A)</enum><header>In general</header><text>The Secretary may waive the imposition of a tax under this subsection on any contribution described in paragraph (1)(A) or any accrual described in paragraph (1)(B). The Secretary may grant any such waiver only after consultation with the Pension Benefit Guaranty Corporation. The Secretary shall promptly notify the Secretary of Labor of any such waiver granted by the Secretary.</text></subparagraph>
<subparagraph id="H954635F954EC48F491209C211BABB25B"><enum>(B)</enum><header>Requirements for waiver</header><text>A waiver may be granted under subparagraph (A) only—</text>
<clause id="H16F570E7274049FA81859B19E8CADE5E"><enum>(i)</enum><text>upon the filing with the Secretary by the plan sponsor of an application for such waiver, in such form and manner as shall be prescribed in regulations of the Secretary,</text></clause>
<clause id="H715C1BC46F9A405BAE00EB00A7EC61A0"><enum>(ii)</enum><text>upon a showing, to the satisfaction of the Secretary, that such waiver is a business necessity for the plan sponsor, as determined under such regulations, and is in the interest of plan participants and beneficiaries, as determined under such regulations, and</text></clause>
<clause id="H1178F1CC9E434974914F062500CBC6D3"><enum>(iii)</enum><text>after the participants, in such form and manner as shall be provided in such regulations, have been notified of the filing of the application for the waiver and have been provided a reasonable opportunity to provide in advance comments to the Secretary regarding the proposed waiver.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HA8C0734675D347CB9CD9C2ABB2BA06AE"><enum>(3)</enum><text>in subsection (c) (as redesignated by paragraph (1))—</text>
<subparagraph id="H325A623537A1459BA3E91033F3436721"><enum>(A)</enum><text>by striking <quote>The amount of the tax</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H95C16113F165416600B6F8222735BEBE" display-inline="no-display-inline">
<paragraph id="HE175371B874C4E328DCB79BC8DD86116"><enum>(1)</enum><header>Subsection (<enum-in-header>a</enum-in-header>)</header><text>The amount of the tax</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H49DF7BF28A6B4DCBA3E9F11C2B33008B"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HEB9D1CBE14784A8EA5B738F442A1B9E" display-inline="no-display-inline">
<paragraph id="HA724414C8E6648FEB8303F8F26B551CE"><enum>(2)</enum><header>Subsection (<enum-in-header>b</enum-in-header>)</header><text>The amount of the tax imposed by subsection (b) shall be equal to the sum of—</text>
<subparagraph id="H2824D59DF2FD4C5080AFE5BB4514E86D"><enum>(A)</enum><text>the amount of any contribution described in subsection (b)(1), plus</text></subparagraph>
<subparagraph id="H8C19A370CEA14FBA9783985564E1014"><enum>(B)</enum><text>the amount of any accrual described in subsection (b)(2).</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H61B1037C44D948FAA4296DE3B82C7ECC"><enum>(4)</enum><text>in subsection (d) (as redesignated by paragraph (1)), by striking <quote>the tax</quote> and inserting <quote>any tax</quote>. </text></paragraph></subsection>
<subsection id="H27DDE867E5F6411D84BE48D3342815E"><enum>(b)</enum><header>Conforming amendment</header><text>Section 206(g)(6) of the Employee Retirement Income Security Act of 1974 (as added by section 101 of this Act) is amended by striking <quote>section 4980H(g)</quote> and inserting <quote>section 4980H(h)</quote>. </text></subsection>
<subsection id="HB79094A2C28B422E81EABF00304F06BE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply with respect to plan years beginning on or after January 1, 2006.</text></subsection></section>
<enum>III</enum><header>Fairness in disclosure</header>
<section id="HF8BFD6AF92AA4ED28376D1D1C6191C0"><enum>301.</enum><header>Disclosure with respect to benefits under nonqualified deferred compensation plans</header>
<subsection id="H2B56120A621649E79E11E8789C2CD7C3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 101 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021</external-xref>) is amended—</text>
<paragraph id="H4F946A08BE4E4080AA92B04F14B21125"><enum>(1)</enum><text>by redesignating subsection (j) as subsection (k); and</text></paragraph>
<paragraph id="HFA0BF3D740164DBC93D44C30A0458300"><enum>(2)</enum><text>by inserting after subsection (i) the following new subsection:</text>
<quoted-block style="OLC" id="HC2816185575244D59CC39E48700EB28" display-inline="no-display-inline">
<subsection id="H618F4C4A09B8412FA59DAB89E500A963"><enum>(j)</enum><header>Disclosure with respect to benefits under covered deferred compensation plans</header>
<paragraph id="HA90F14B3F18F4D8C9E76E4E886BE14B7"><enum>(1)</enum><header>In general</header><text>In any case in which—</text>
<subparagraph id="H461D32AAB03747848339BFAF07CBA0F4"><enum>(A)</enum><text>an amendment to a pension plan is adopted which has the effect of—</text>
<clause id="H0981F9DCC6814C16978B98FF505766C8"><enum>(i)</enum><text>eliminating future benefit accruals under the plan,</text></clause>
<clause id="HE54DB2EECC5041B6A81C1070C0255BD3"><enum>(ii)</enum><text>converting the plan to a cash balance plan in a case described in section 206(g)(1)(B), </text></clause>
<clause id="H1D8EAC5CBA9C4E7D913E47B7ED52C435"><enum>(iii)</enum><text>reducing the rate of future benefit accruals under the plan (in the case of a defined benefit plan), or</text></clause>
<clause id="H26A49EE26AD845EC93823F22364450E2"><enum>(iv)</enum><text>reducing future employer contributions under the plan (in the case of a defined contribution plan), or</text></clause></subparagraph>
<subparagraph id="HD65C67B6A90D4356BAE6F5288BC4CB0"><enum>(B)</enum><text>the plan administrator of a pension plan has filed under section 4041(a)(2) a notice of intent to terminate such plan in a distress termination under section 4041(c) based on bankruptcy reorganization or, in advance of filing such a notice, has filed a motion with the court in the proceedings relating to such bankruptcy reorganization seeking approval to commence proceedings for such a distress termination,</text></subparagraph><continuation-text continuation-text-level="paragraph">the plan administrator shall provide to each plan participant and beneficiary a notice under this subsection with respect to each covered deferred compensation plan maintained by the plan sponsor of the pension plan (and each member of the plan sponsor’s controlled group).</continuation-text></paragraph>
<paragraph id="H351C7F745FD94DD0A307442508786BFA"><enum>(2)</enum><header>Notice</header><text>A notice required under this subsection with respect to a covered deferred compensation plan shall set forth, in language calculated to be understood by the average pension plan participant—</text>
<subparagraph id="H06A8E8A9B4074A96862B7B92F762AEA1"><enum>(A)</enum><text>a complete summary description of the terms of the covered deferred compensation plan,</text></subparagraph>
<subparagraph id="HD3397B7957C84984002900A4D32D79B3"><enum>(B)</enum><text>the actuarial present value of the benefit liabilities of the covered deferred compensation plan, as of the most recent valuation date of such plan,</text></subparagraph>
<subparagraph id="H31FFBB199A3F4E669EFE96D9B0CA34BC"><enum>(C)</enum><text>any additional cost to the plan sponsor (or to the member of the plan sponsor’s controlled group), for the preceding plan year of such plan, of maintaining such covered deferred compensation plan, including tax expenditures attributable to the maintenance of such plan (or, if not known on the date of the notice, a reasonable estimation thereof), and</text></subparagraph>
<subparagraph id="HE824513F194E4D10926B9B9953D6D00"><enum>(D)</enum><text>in any case described in paragraph (1)(B)—</text>
<clause id="H74E379E6B9F04965861760EFD800A559"><enum>(i)</enum><text>a statement that the notice of intent to terminate or motion has been filed, and</text></clause>
<clause id="H9282E174715241EEBAAA86769EC6FC67"><enum>(ii)</enum><text>a statement of the extent to which the actuarial present value of benefit liabilities of the pension plan referred to in paragraph (1)(B) is expected to be reduced by reason of the termination.</text></clause></subparagraph></paragraph>
<paragraph id="HCF5CBE91835E45AB908FF37FEBBC17B2"><enum>(3)</enum><header>Timing of notice</header><text>A notice under this subsection shall be provided—</text>
<subparagraph id="HE00B01B34B6442CC8C621B74DF0458EB"><enum>(A)</enum><text>not later than 15 days after—</text>
<clause id="H269ABC8828EF4A8782604BC706E84517"><enum>(i)</enum><text>the date of the adoption of the amendment described in paragraph (1)(A), or</text></clause>
<clause id="H8E7BF0128A9A4E43AF0071643E085821"><enum>(ii)</enum><text>the date of the notice of intent to terminate described in paragraph (1)(B),</text></clause><continuation-text continuation-text-level="subparagraph">(as the case may be), and</continuation-text></subparagraph>
<subparagraph id="H943C3BC2328D4815AC6C77B67DDD5736"><enum>(B)</enum><text>in the same manner as is provided under section 104(b)(1) with respect to summary descriptions of plan modifications or changes.</text></subparagraph></paragraph>
<paragraph id="HAA9A2F18ACB24A6BA5156993773006E5"><enum>(4)</enum><header>Definitions</header><text>For purposes of this subsection—</text>
<subparagraph id="H67B94302D7E34F31A3B66EDF24F4F4E9"><enum>(A)</enum><text display-inline="yes-display-inline">The term <quote>cash balance plan</quote> has the meaning provided in section 206(g)(3)(A).</text></subparagraph>
<subparagraph id="HDA05AE11FBE942918D12CCD47D1B70EC" display-inline="no-display-inline"><enum>(B)</enum><text>The term <quote>covered deferred compensation plan</quote> has the meaning provided in section 206(g)(3)(C).</text></subparagraph>
<subparagraph id="HBE6816CFCC8D4AD088D49FF23D556E9"><enum>(C)</enum><text>The term <quote>controlled group</quote> has the meaning provided in section 302(c)(11)(B)(ii).</text></subparagraph>
<subparagraph id="H70538CAFDB524C8297398300616626F2"><enum>(D)</enum><text display-inline="yes-display-inline">Whether a termination of a plan which is a distress termination under section 4041(c) is <quote>based on bankruptcy reorganization</quote> shall be determined as provided in section 206(g)(3)(E).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H0B1E56B94F914774B82FE267F6EBA8E"><enum>(b)</enum><header>Enforcement</header><text>Section 502(c)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(c)(1)</external-xref>) is amended by striking <quote>or section 101(e)(1)</quote> and inserting <quote>or subsection (e)(1) or (j)(1) of section 101</quote>.</text></subsection>
<subsection id="H3352C8D8126D465C80D1F8B143450300"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply with respect to—</text>
<paragraph id="H5C7C50177B36486994D0C771EB54B24"><enum>(1)</enum><text>plan amendments adopted on or after January 1, 2006, and</text></paragraph>
<paragraph id="H73E79A398FFA457E005EA36C0022B84C"><enum>(2)</enum><text display-inline="yes-display-inline">notices of intent to terminate or motions (described in section 101(j)(1)(B) of the Employee Retirement Income Security Act of 1974 (as added by this section)) filed on or after such date.</text></paragraph></subsection></section>