[Congressional Record Volume 152, Number 135 (Friday, December 8, 2006)]
[Senate]
[Pages S11643-S11644]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING OPTIONAL FUNDING RULES FOR EMPLOYERS IN APPLICABLE MULTIPLE
EMPLOYER PENSION PLANS
Mr. STEVENS. I send a bill to the desk and ask unanimous consent for
its immediate consideration.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 4121) to provide optional funding rules for
employers in applicable multiple employer pension plans.
There being no objection, the Senate proceeded to consider the bill.
Mr. STEVENS. Mr. President, a year ago I raised the issue of the
problem of the small timber industry in Alaska, and we had an amendment
to be offered to the tax bill. I was asked not to proceed then, and I
received a commitment that this amendment would be included in the next
tax bill as a technical correction. We thought it was going to be in
this year again, and I discovered it is not in the bill.
What this bill does, it deals with the problem created in the timber
industry in southeastern Alaska when a series of companies failed and
they left a situation where the pension plan is supported only by the
surviving companies. These companies have the obligation to pay the
pensions of those who retired from other companies that failed, prior
to their demise, but they found they cannot do that and survive unless
the time within which the payments are to be made is extended. That
will be the purpose of this bill. The purpose of this bill is to extend
the time so that the surviving companies can pay not only their own
employer contribution for their own employees but for the employees of
the companies that failed.
I have been told today that this bill affects 600 to 1,000 jobs in
southeastern Alaska now and up to 2,000 employees who already retired.
Unless the time is extended, the surviving companies will fail and the
existing employees will lose their jobs and those who have already
retired will not get their pensions.
I conferred with our friend, the chairman on the House side, Chairman
Thomas. I suggested the only way to deal with this now, since the House
has already passed this bill without the amendment in it, would be to
have this independent bill passed. I am grateful to all who have been
considering this bill all day long. It has been an all-day-long
proposition, and I do hope it will be passed now so that we may try to
see if the House can pass it before they adjourn.
I do urge immediate passage of the bill.
The PRESIDING OFFICER. If there is no further debate, the question is
on the engrossment and third reading of the bill.
The bill was ordered to be engrossed for a third reading, was read
the third time, and passed, as follows:
S. 4121
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TREATMENT OF LIABILITY FOR CERTAIN MULTIPLE
EMPLOYER PLANS.
(a) In General.--In the case of an applicable pension
plan--
(1) if an eligible employer elects the application of
subsection (b), any liability of the employer with respect to
the applicable pension plan shall be determined under
subsection (b), and
(2) if an eligible employer does not make such election,
any liability of the employer with respect to the applicable
pension plan shall be determined under subsection (c).
(b) Election to Spin Off Liability.--
(1) In general.--If an eligible employer elects, within 180
days after the date of the enactment of this Act, to have
this subsection apply, the applicable pension plan shall be
treated as having, effective January 1, 2006, spun off such
employer's allocable portion of the plan's assets and
liabilities to an eligible spunoff plan and the employer's
liability with respect to the applicable pension plan shall
be determined by reference to the eligible spunoff plan in
the manner provided under paragraph (2). The employer's
liability, as so determined, shall be in lieu of any other
liability to the Pension Benefit Guaranty Corporation or to
the applicable pension plan with respect to the applicable
pension plan.
(2) Liability of employers electing spinoff.--
(A) Ongoing funding liability.--
(i) In general.--In the case of an eligible spunoff plan,
the amendments made by section 401, and subtitles A and B of
title I, of the Pension Protection Act of 2006 shall not
apply to plan years beginning before the first plan year for
which the plan ceases to be an eligible spunoff plan (or, if
earlier, January 1, 2017), and except as provided in clause
(ii), the employer maintaining such plan shall be liable for
ongoing contributions to the eligible spunoff plan on the
same terms and subject to the same conditions as under the
provisions of the Employee Retirement Income Security Act of
1974 and the Internal Revenue Code of 1986 as in effect
before such amendments. Such liability shall be in lieu of
any other liability to the Pension Benefit Guaranty
Corporation or to the applicable pension plan with respect to
the applicable pension plan.
(ii) Interest rate.--In applying section 302(b)(5)(B) of
the Employee Retirement Income Security Act of 1974 and
section 412(b)(5)(B) of the Internal Revenue Code of 1986 (as
in effect before the amendments made by subtitles A and B of
title I of the Pension Protection Act of 2006) and in
applying section 4006(a)(3)(E)(iii) of such Act (as in effect
before the amendments made by section 401 of such Act) to an
eligible spunoff plan for plan years beginning after December
31, 2007, and before the first plan year to which such
amendments apply, the third segment rate determined under
section
[[Page S11644]]
303(h)(2)(C)(iii) of such Act and section 430(h)(2)(C)(iii)
of such Code (as added by such amendments) shall be used in
lieu of the interest rate otherwise used.
(B) Termination liability.--If an eligible spunoff plan
terminates under title IV of the Employee Retirement Income
Security Act of 1974 on or before December 31, 2010, the
liability of the employer maintaining such plan resulting
from such termination under section 4062 of the Employee
Retirement Income Security Act of 1974 shall be determined in
accordance with the assumptions and methods described in
subsection (c)(2)(A). The employer's liability, as so
determined, shall be in lien of any other liability to the
Pension Benefit Guaranty Corporation or to the applicable
pension plan with respect to the applicable pension plan.
(c) Liability of Employers Not Electing Spinoff.--
(1) In general.--If an applicable pension plan is
terminated under the Employee Retirement Income Security Act
of 1974, an eligible employer which does not make the
election described in subsection (b) shall be liable to the
corporation with respect to the applicable pension plan (in
lieu of any other liability to the Pension Benefit Guaranty
Corporation or to the applicable pension plan with respect to
the applicable pension plan ) in an amount equal to the
fractional portion of the adjusted unfunded benefit
liabilities of such plan as of December 31, 2005, determined
without regard to any adjusted unfunded benefit liabilities
to be transferred to an eligible spunoff plan pursuant to
subsection (b).
(2) Definitions.--For purposes of this subsection--
(A) Adjusted unfunded benefit liabilities.--The term
``adjusted unfunded benefit liabilities'' means the amount of
unfunded benefit liabilities (as defined in section
4001(a)(18) of the Employee Retirement Income Security Act of
1974), except that the interest assumption shall be the rate
of interest under section 302(b) of the Employee Retirement
Income Security Act of 1974 and section 412(b) of the
Internal Revenue Code of 1986, as in effect before the
amendments made by the Pension Protection Act of 2006, for
the most recent plan year for which such rate exists.
(B) Fractional portion.--The term ``fractional portion''
means a fraction, the numerator of which is the amount
required to be contributed to the applicable pension plan for
the 5 plan years ending before December 31, 2005, by such
employer, and the denominator of which is the amount required
to be contributed to such plan for such plan years by all
employers which do not make the election described in
subsection (b).
(d) Other Definitions.--For purposes of this section--
(1) Applicable pension plan.--The term ``applicable pension
plan'' means a single employer plan which--
(A) was established in the State of Alaska on March 18,
1967, and
(B) as of January 1, 2005, had 2 or more contributing
sponsors at least 2 of which were not under common control.
(2) Allocable portion.--The term ``allocable portion''
means, with respect to any eligible employer making an
election under subsection (b), the portion of an applicable
pension plan's liabilities and assets which bears the same
ratio to all such liabilities and assets as such employer's
share (determined under subsection (c) as if no eligible
employer made an election under subsection (b)) of the excess
(if any) of--
(A) the liabilities of the plan, valued in accordance with
subsection (c), over
(B) the assets of the plan,
bears to the total amount of such excess.
(3) Eligible employer.--An ``eligible employer'' is an
employer which participated in an eligible multiple employer
plan on or after January 1, 2000.
Mr. REID. I move to reconsider the bill.
Mr. STEVENS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. GRASSLEY. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
SUSAN MCCUE
Mr. REID. Mr. President, for 16 years I have had a woman working for
me who has been outstanding. She has worked in my press department for
the last 8 years. She has been my chief of staff. Her name is Susan
McCue. She has a wonderful background. She is one of 10 children. She
put herself through college working as a waitress, among other things.
She is a graduate of Rutgers University with a bachelor's degree.
Some people are born with the ability to jump high and throw balls a
long ways, and some people go to the finest business schools in the
country to learn how to manage people. Susan has an innate ability, as
if she were a skilled athlete, a skill to be an administrator. What she
did to develop my staff is something that I am sure someday will be
used as a ``how you should hire a staff in Washington, DC.''
I have such great affection for Susan. She has worked so hard for me.
She has decided to leave after 16 years to go downtown and work,
seeking not a job where she can make a lot of money but working in a
program that will deal with poor people around the world. She will make
just a little bit more money than she is being paid right here. But
being the person she is, a kind, thoughtful, considerate person, she
thought it was time for a change.
As hard as it is for me to let someone go who has done such a
wonderful job for me, I must be as loyal and dedicated to her as she
has been to me.
I want everyone to know--and I especially want Susan to know--that
her work on my behalf has been something that I and my family will long
remember. I have never had anyone in my professional career as a
lawyer, as a government worker, who has been more dedicated or more
skilled than Susan McCue. I will miss her greatly. I know our paths
will cross, but I am a better person for having had her run my office.
And poor people of the world will be well served with Susan McCue
looking after them.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. DeWINE. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Martinez). Without objection, it is so
ordered.
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