[Congressional Record Volume 149, Number 140 (Tuesday, October 7, 2003)]
[House]
[Pages H9250-H9251]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




MAKING IN ORDER AT ANY TIME CONSIDERATION OF H.R. 3108, PENSION FUNDING 
                           EQUITY ACT OF 2003

  Mr. BOEHNER. Madam Speaker, I ask unanimous consent that it shall be 
in order at any time without intervention of any point of order to 
consider in the House the bill (H.R. 3108) to amend the Employee 
Retirement Income Security Act of 1974 and the Internal Revenue Code of 
1986 to temporarily replace the 30-year Treasury rate with a rate based 
on long-term corporate bonds for certain pension plan funding 
requirements and other provisions, and for other purposes; the bill 
shall be considered as read for amendment; the amendment in the nature 
of a substitute that I have placed at the desk shall be considered as 
adopted; all points of order against the bill, as amended, are waived; 
the previous question shall be considered as ordered on the bill, as 
amended, to final passage without intervening motion except: one, 1 
hour of debate on the bill, as amended, equally divided and controlled 
among the chairman and ranking minority member of the Committee

[[Page H9251]]

on Education and the Workforce and the chairman and ranking minority 
member of the Committee on Ways and Means; and, two, one motion to 
recommit with or without instructions; and that the amendment that I 
have placed at the desk shall be considered as read for purposes of 
this unanimous consent request.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  The text of the amendment in the nature of a substitute is as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pension Funding Equity Act 
     of 2003''.

     SEC. 2. FINDINGS; SENSE OF CONGRESS.

       (a) Findings.--The Congress finds the following:
       (1) The defined benefit pension system has recently 
     experienced severe difficulties due to an unprecedented 
     economic climate of low interest rates, market losses, and an 
     increased number of retirees.
       (2) The discontinuation of the issuance of 30-year Treasury 
     securities has made the interest rate on such securities an 
     inappropriate and inaccurate benchmark for measuring pension 
     liabilities.
       (3) Using the current 30-year Treasury bond interest rate 
     has artificially inflated pension liabilities and therefore 
     adversely affected both employers offering defined benefit 
     pension plans and working families who rely on the safe and 
     secure benefits that these plans provide.
       (4) There is consensus among pension experts that an 
     interest rate based on long-term, conservative corporate 
     bonds would provide a more accurate benchmark for measuring 
     pension plan liabilities.
       (5) A temporary replacement for the 30-year Treasury bond 
     interest rate should be enacted while the Congress evaluates 
     permanent and comprehensive funding reforms.
       (b) Sense of Congress.--It is the sense of the Congress 
     that the Congress must ensure the financial health of the 
     defined benefit pension system by working to promptly 
     implement--
       (1) a permanent replacement for the pension discount rate 
     used for defined benefit pension plan calculations, and
       (2) comprehensive funding reforms aimed at achieving 
     accurate and sound pension funding to enhance retirement 
     security for workers who rely on defined pension plan 
     benefits, to reduce the volatility of contributions, to 
     provide plan sponsors with predictability for plan 
     contributions, and to ensure adequate disclosures for plan 
     participants in the case of underfunded pension plans.

     SEC. 3. TEMPORARY REPLACEMENT OF 30-YEAR TREASURY RATE.

       (a) Employee Retirement Income Security Act of 1974.--
       (1) Determination of permissible range.--
       (A) In general.--Clause (ii) of section 302(b)(5)(B) of the 
     Employee Retirement Income Security Act of 1974 is amended by 
     redesignating subclause (II) as subclause (III) and by 
     inserting after subclause (I) the following new subclause:
       ``(II) Special rule for years 2004 and 2005.--In the case 
     of plan years beginning after December 31, 2003, and before 
     January 1, 2006, the term `permissible range' means a rate of 
     interest which is not above, and not more than 10 percent 
     below, the weighted average of the rates of interest on 
     amounts conservatively invested in long-term corporate bonds 
     during the 4-year period ending on the last day before the 
     beginning of the plan year. Such rates shall be determined by 
     the Secretary on the basis of one or more indices selected 
     periodically by the Secretary, and the Secretary shall make 
     the permissible range publicly available.''.
       (B) Secretarial authority.--Subclause (III) of section 
     302(b)(5)(B)(ii) of such Act, as redesignated by subparagraph 
     (A), is amended--
       (i) by inserting ``or (II)'' after ``subclause (I)'' the 
     first place it appears, and
       (ii) by striking ``subclause (I)'' the second place it 
     appears and inserting ``such subclause''.
       (C) Conforming amendment.--Subclause (I) of section 
     302(b)(5)(B)(ii) of such Act is amended by inserting ``or 
     (III)'' after ``subclause (II)''.
       (2) Determination of current liability.--Clause (i) of 
     section 302(d)(7)(C) of such Act is amended by adding at the 
     end the following new subclause:

       ``(IV) Special rule for 2004 and 2005.--For plan years 
     beginning in 2004 or 2005, notwithstanding subclause (I), the 
     rate of interest used to determine current liability under 
     this subsection shall be the rate of interest under 
     subsection (b)(5).''.

       (3) PBGC.--Clause (iii) of section 4006(a)(3)(E) of such 
     Act is amended by adding at the end the following new 
     subclause:
       ``(V) In the case of plan years beginning after December 
     31, 2003, and before January 1, 2006, the annual yield taken 
     into account under subclause (II) shall be the annual yield 
     determined by the Secretary of the Treasury on amounts 
     conservatively invested in long-term corporate bonds for the 
     month preceding the month in which the plan year begins. For 
     purposes of the preceding sentence, the Secretary of the 
     Treasury shall determine such yield on the basis of one or 
     more indices selected periodically by the Secretary, and the 
     Secretary shall make such yield publicly available.''.
       (b) Internal Revenue Code of 1986.--
       (1) Determination of permissible range.--
       (A) In general.--Clause (ii) of section 412(b)(5)(B) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subclause (II) as subclause (III) and by inserting after 
     subclause (I) the following new subclause:

       ``(II) Special rule for years 2004 and 2005.--In the case 
     of plan years beginning after December 31, 2003, and before 
     January 1, 2006, the term `permissible range' means a rate of 
     interest which is not above, and not more than 10 percent 
     below, the weighted average of the rates of interest on 
     amounts conservatively invested in long-term corporate bonds 
     during the 4-year period ending on the last day before the 
     beginning of the plan year. Such rates shall be determined by 
     the Secretary on the basis of one or more indices selected 
     periodically by the Secretary, and the Secretary shall make 
     the permissible range publicly available.''.

       (B) Secretarial authority.--Subclause (III) of section 
     412(b)(5)(B)(ii) of such Code, as redesignated by 
     subparagraph (A), is amended--
       (i) by inserting ``or (II)'' after ``subclause (I)'' the 
     first place it appears, and
       (ii) by striking ``subclause (I)'' the second place it 
     appears and inserting ``such subclause''.
       (C) Conforming amendment.--Subclause (I) of section 
     412(b)(5)(B)(ii) of such Code is amended by inserting ``or 
     (III)'' after ``subclause (II)''.
       (2) Determination of current liability.--Clause (i) of 
     section 412(l)(7)(C) of such Code is amended by adding at the 
     end the following new subclause:

       ``(IV) Special rule for 2004 and 2005.--For plan years 
     beginning in 2004 or 2005, notwithstanding subclause (I), the 
     rate of interest used to determine current liability under 
     this subsection shall be the rate of interest under 
     subsection (b)(5).''.

       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to years 
     beginning after December 31, 2003.
       (2) Lookback rules.--For purposes of applying subsections 
     (l)(9)(B)(ii) and (m)(1) of section 412 of the Internal 
     Revenue Code of 1986 and subsections (d)(9)(B)(ii) and (e)(1) 
     of section 302 of the Employee Retirement Income Security Act 
     of 1974 to plan years beginning after December 31, 2003, the 
     amendments made by this section may be applied as if such 
     amendments had been in effect for all years beginning before 
     such date.

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