[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[Senate]
[Pages 404-414]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2236. Mr. KYL proposed an amendment to amendment SA 2233 proposed 
by Mr. Grassley (for himself, Mr. Baucus, Mr. Gregg, and Mr. Kennedy) 
to 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; as follows:

         At the end of section 3, insert:
       (__) Restrictions on Application for Funding Waiver for 
     Employers Electing Alternative Deficit Reduction 
     Contribution.--An employer who makes an election under 
     section 412(l)(12) of the Internal Revenue Code of 1986 or 
     section 302(d)(12) of the Employee Retirement Income Security 
     Act of 1974 (as added by this section) with respect to a plan 
     for 2 plan years may not receive a funding waiver under 
     section 412(d) of such Code for any plan year beginning after 
     December 27, 2005, and before December 28, 2007.
                                 ______
                                 
  SA 2237. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike sections 3, 4, and 5 and insert:

     SEC. 3. ELECTION OF ALTERNATIVE DEFICIT REDUCTION 
                   CONTRIBUTION.

       (a) Amendment of 1986 Code.--Section 412(l) of the Internal 
     Revenue Code of 1986 (relating to applicability of 
     subsection) is amended by adding at the end the following new 
     paragraph:
       ``(12) Alternative increase for certain plans meeting 
     requirements in 2000.--
       ``(A) In general.--In the case of a defined benefit plan 
     established and maintained by an applicable employer, if this 
     subsection did not apply to the plan for the plan year 
     beginning in 2000 (determined without regard to paragraph 
     (6)), then, at the election of the employer, the increased 
     amount under paragraph (1) for any applicable plan year shall 
     be the greater of--
       ``(i) 20 percent (40 percent in the case of an applicable 
     plan year beginning after December 27, 2004) of the increased 
     amount under paragraph (1) determined without regard to this 
     paragraph, or
       ``(ii) the increased amount which would be determined under 
     paragraph (1) if the deficit reduction contribution under 
     paragraph (2) for the applicable plan year were determined 
     without regard to subparagraphs (A), (B), and (D) of 
     paragraph (2).
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any applicable plan 
     year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--

       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,

       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of subsection (f)(2).

     If a plan is amended during any applicable plan year in 
     violation of the preceding sentence, any election under this 
     paragraph shall not apply to any applicable plan year ending 
     on or after the date on which such amendment is adopted.
       ``(C) Applicable employer.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable employer' means an 
     employer which is--

       ``(I) a commercial passenger airline,
       ``(II) primarily engaged in the production or manufacture 
     of a steel mill product, or
       ``(III) an organization described in section 501(c)(5) and 
     which established the plan to which this paragraph applies on 
     June 30, 1955.

       ``(ii) Other employers may apply for relief.--

       ``(I) In general.--Except as provided in subclause (II), an 
     employer other than an employer described in clause (i) shall 
     be treated as an applicable employer if the employer files an 
     application (at such time and in such manner as the Secretary 
     may prescribe) to be treated as an applicable employer for 
     purposes of this paragraph.
       ``(II) Exception.--Subclause (I) shall not apply to an 
     employer if, within 90 days of the filing of the application, 
     the Secretary determines (taking into account the application 
     of this paragraph) that there is a reasonable likelihood that 
     the employer will be unable to make future required 
     contributions to the plan in a timely manner.

       ``(D) Applicable plan year.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable plan year' means 
     any plan year beginning after December 27, 2003, and before 
     December 28, 2005, for which the employer elects the 
     application of this paragraph.
       ``(ii) Limitation on number of years which may be 
     elected.--An election may not be made under this paragraph 
     with respect to more than 2 plan years.
       ``(E) Election.--An election under this paragraph shall be 
     filed with the Secretary within 30 days after the beginning 
     of the plan year to which the election applies (or, if later, 
     within 30 days after the date of the enactment of this 
     paragraph).''
       (b) Amendment of ERISA.--Section 302(d) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(d)) is 
     amended by adding at the end the following new paragraph:

[[Page 405]]

       ``(12) Alternative increase for certain plans meeting 
     requirements in 2000.--
       ``(A) In general.--In the case of a defined benefit plan 
     established and maintained by an applicable employer, if this 
     subsection did not apply to the plan for the plan year 
     beginning in 2000 (determined without regard to paragraph 
     (6)), then, at the election of the employer, the increased 
     amount under paragraph (1) for any applicable plan year shall 
     be the greater of--
       ``(i) 20 percent (40 percent in the case of an applicable 
     plan year beginning after December 27, 2004) of the increased 
     amount under paragraph (1) determined without regard to this 
     paragraph, or
       ``(ii) the increased amount which would be determined under 
     paragraph (1) if the deficit reduction contribution under 
     paragraph (2) for the applicable plan year were determined 
     without regard to subparagraphs (A), (B), and (D) of 
     paragraph (2).
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any 
     applicable plan year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--

       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,

       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of section 304(b)(2).

     If a plan is amended during any applicable plan year in 
     violation of the preceding sentence, any election under this 
     paragraph shall not apply to any applicable plan year ending 
     on or after the date on which such amendment is adopted.
       ``(C) Applicable employer.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable employer' means an 
     employer which is--

       ``(I) a commercial passenger airline,
       ``(II) primarily engaged in the production or manufacture 
     of a steel mill product, or
       ``(III) an organization described in section 501(c)(5) of 
     the Internal Revenue Code of 1986 and which established the 
     plan to which this paragraph applies on June 30, 1955.

       ``(D) Applicable plan year.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable plan year' means 
     any plan year beginning after December 27, 2003, and before 
     December 28, 2005, for which the employer elects the 
     application of this paragraph.
       ``(ii) Limitation on number of years which may be 
     elected.--An election may not be made under this paragraph 
     with respect to more than 2 plan years.
       ``(E) Notice requirements for plans electing alternative 
     deficit reduction contributions.--
       ``(i) In general.--If an employer elects an alternative 
     deficit reduction contribution under this paragraph and 
     section 412(l)(12) of the Internal Revenue Code of 1986 for 
     any year, the employer shall provide, within 30 days (120 
     days in the case of an employer described in subparagraph 
     (C)(ii)) of filing the election for such year, written notice 
     of the election to participants and beneficiaries and to the 
     Pension Benefit Guaranty Corporation.
       ``(ii) Notice to participants and beneficiaries.--The 
     notice under clause (i) to participants and beneficiaries 
     shall include with respect to any election--

       ``(I) the due date of the alternative deficit reduction 
     contribution and the amount by which such contribution was 
     reduced from the amount which would have been owed if the 
     election were not made, and
       ``(II) a description of the benefits under the plan which 
     are eligible to be guaranteed by the Pension Benefit Guaranty 
     Corporation and an explanation of the limitations on the 
     guarantee and the circumstances under which such limitations 
     apply, including the maximum guaranteed monthly benefits 
     which the Pension Benefit Guaranty Corporation would pay if 
     the plan terminated while underfunded.

       ``(iii) Notice to pbgc.--The notice under clause (i) to the 
     Pension Benefit Guaranty Corporation shall include--

       ``(I) the information described in clause (ii)(I),
       ``(II) the number of years it will take to restore the plan 
     to full funding if the employer only makes the required 
     contributions, and
       ``(III) information as to how the amount by which the plan 
     is underfunded compares with the capitalization of the 
     employer making the election.

       ``(iv) Public information.--If an employer making an 
     election under this paragraph is a member of a controlled 
     group subject to section 4010, the Pension Benefit Guaranty 
     Corporation may make public the assets, liabilities, and 
     funded liability percentage of any plan maintained by the 
     plan sponsor for any plan year which corresponds to the plan 
     year of the election and each of the 4 succeeding plan years.
       ``(F) Election.--An election under this paragraph shall be 
     filed with the Secretary of the Treasury within 30 days after 
     the beginning of the plan year to which the election applies 
     (or, if later, within 30 days after the date of the enactment 
     of this paragraph).''
       (c) Effect of Election.--An election under section 
     412(l)(12) of the Internal Revenue Code of 1986 or section 
     302(d)(12) of the Employee Retirement Income Security Act of 
     1974 (as added by this section) with respect to a plan shall 
     not invalidate any obligation (pursuant to a collective 
     bargaining agreement in effect on the date of the election) 
     to provide benefits, to change the accrual of benefits, or to 
     change the rate at which benefits become nonforfeitable under 
     the plan.
       (d) Penalty for Failing To Provide Notice.--Section 
     502(c)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1132(c)(3)) is amended by inserting ``or who 
     fails to meet the requirements of section 302(d)(12)(E) with 
     respect to any participant or beneficiary'' after 
     ``101(e)(2)''.
       (e) Limitations on PBGC Liability for Plans to Which 
     Alternative Deficit Reduction Contribution Applies.--
       (1) In general.--If a plan with respect to which an 
     election under section 412(l)(12) of the Internal Revenue 
     Code or section 302(d)(12) of the Employee Retirement Income 
     Security Act of 1974 (as added by this section) is made 
     terminates during the applicable period, the maximum 
     guarantee limitation under section 4022(b)(3) of such Act, 
     and the phase-in rate of benefit increases under paragraph 
     (5) or (7) of section 4022(b) of such Act, shall be the 
     limitation and rates determined as if the plan terminated on 
     the day before the first day of the applicable period.
       (2) Applicable period.--For purposes of paragraph (1), the 
     term ``applicable period'' means, with respect to any plan, 
     the period--
       (A) beginning on the first day of the first applicable plan 
     year with respect to the plan, and
       (B) ending on the last day of the fourth plan year 
     following the last applicable plan year with respect to the 
     plan.

     For purposes of this paragraph, the term ``applicable plan 
     year'' has the meaning given such term by section 412(l)(12) 
     of the Internal Revenue Code of 1986 and section 302(d)(12) 
     of the Employee Retirement Income Security Act of 1974 (as 
     added by this section).
       (f) Election.--Each election under section 412(l)(12) of 
     the Internal Revenue Code of 1986 or section 302(d)(12) of 
     the Employee Retirement Income Security Act of 1974 (as added 
     by this section) shall be counted as an election of a funding 
     waiver for purposes of section 412(d)(1) of the Internal 
     Revenue Code of 1986.

     SEC. 4. MULTIEMPLOYER PLAN FUNDING NOTICES.

       (a) In General.--Section 104 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 104) is amended by 
     redesignating subsection (d) as subsection (e) and by 
     inserting after subsection (c) the following new subsection:
       ``(d) Multiemployer Defined Benefit Plan Funding Notices.--
       ``(1) In general.--The administrator of a defined benefit 
     plan which is a multiemployer plan shall for each plan year 
     provide a plan funding notice to each plan participant and 
     beneficiary, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan, and to the Pension 
     Benefit Guaranty Corporation.
       ``(2) Information contained in notices.--
       ``(A) Identifying information.--Each notice required under 
     paragraph (1) shall contain identifying information, 
     including the name of the plan, the address and phone number 
     of the plan administrator and the plan's principal 
     administrative officer, each plan sponsor's employer 
     identification number, and the plan number of the plan.
       ``(B) Specific information.--A plan funding notice under 
     paragraph (1) shall include--
       ``(i) a statement as to whether the plan's funded current 
     liability percentage (as defined in section 302(d)(8)(B), 
     except that all gains and losses shall be immediately 
     recognized and assets shall be valued at their fair market 
     value) for the plan year to which the notice relates is at 
     least 100 percent (and, if not, the actual percentage);
       ``(ii) a statement of the fair market value of the plan's 
     assets, the amount of benefit payments, and the ratio of the 
     assets to the payments for the plan year to which the report 
     relates;
       ``(iii) a summary of the rules governing insolvent 
     multiemployer plans, including the

[[Page 406]]

     limitations on benefit payments and any potential benefit 
     reductions and suspensions (and the potential effects of such 
     limitations, reductions, and suspensions on the plan); and
       ``(iv) a general description of the benefits under the plan 
     which are eligible to be guaranteed by the Pension Benefit 
     Guaranty Corporation, along with an explanation of the 
     limitations on the guarantee and the circumstances under 
     which such limitations apply.
       ``(C) Other information.--Each notice under paragraph (1) 
     shall include any additional information which the plan 
     administrator elects to include to the extent permitted under 
     regulations prescribed by the Secretary.
       ``(3) Time for providing notice.--Any notice under 
     paragraph (1) shall be provided no later than two months 
     after the deadline (including extensions) for filing the 
     annual report for the plan year to which the notice relates.
       ``(4) Form and manner.--Any notice under paragraph (1)--
       ``(A) shall be written in a manner so as to be understood 
     by the average plan participant, and
       ``(B) may be provided in written, electronic, or other 
     appropriate form to the extent such form is reasonably 
     accessible to persons to whom the notice is required to be 
     provided.''
       (b) Penalties.--Section 502(c)(1) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(1)) 
     is amended by striking ``or section 101(e)(1)'' and inserting 
     ``, section 101(e)(1), or section 104(d)''.
       (c) Regulations and Model Notice.--The Secretary of Labor 
     may issue regulations (including a model notice) that 
     implement the amendments made by this section. If such 
     regulations are not issued, the administrator of a defined 
     benefit plan which is a multiemployer plan shall comply with 
     the provisions of section 4011 of the Employee Retirement 
     Income Security Act of 1974 in a reasonable manner to the 
     extent necessary to meet the notice requirements of such 
     amendments.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2003.

     SEC. 5. AMORTIZATION HIATUS FOR NET EXPERIENCE LOSSES IN 
                   MULTIEMPLOYER PLANS.

       (a) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) In general.--Section 302(b)(7) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C.1082(b)(7)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(F)(i) If a multiemployer plan has a net experience loss 
     for any plan year beginning after June 30, 2002, and before 
     July 1, 2006--
       ``(I) the plan may elect to have the 15-year amortization 
     period under paragraph (2)(B)(iv) with respect to the loss 
     begin in any plan year selected by the plan from among the 3 
     immediately succeeding plan years, and
       ``(II) if the plan makes an election under subclause (I) 
     for any plan year, the net experience loss for the year 
     shall, for purposes of determining any charge to the funding 
     standard account, or interest, with respect to the loss, be 
     treated in the same manner as if it were a net experience 
     loss occurring in the year selected by the plan under 
     subclause (I) (without regard to any net experience loss or 
     gain otherwise determined for such year).

     Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 plan years beginning after June 30, 2002, and before 
     July 1, 2006.
       ``(ii) An amendment 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 shall not take 
     effect for any plan year in the hiatus period, unless--
       ``(I) the funded current liability percentage (as defined 
     in subsection (d)(8)(B), except that all gains and losses 
     shall be immediately recognized and assets shall be valued at 
     their fair market value) as of the end of the plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(II) the plan's actuary certifies that, due to an 
     increase in contribution rates, the normal cost attributable 
     to the benefit increase or other change is expected to be 
     fully funded (solely on account of increased contributions) 
     in the year following the year the increase or other change 
     takes effect, and any increase in the plan's accrued 
     liabilities attributable to the benefit increase or other 
     change is expected to be fully funded by the end of the third 
     plan year following the end of the last hiatus period of the 
     plan, except that this subclause shall not apply if the 
     funded current liability percentage (as determined under 
     clause (ii)(I)) as of the end of the plan year of the 
     increase is projected (taking into account the increase) to 
     be less than 75 percent, or
       ``(III) the plan amendment is otherwise described in 
     subparagraph (A) or (C) of section 304(b)(2).
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf, but only if the collective bargaining agreement 
     was in effect on the date of the enactment of this clause.
       ``(iv) For purposes of this subparagraph, the term `hiatus 
     period' means any period during which the amortization of a 
     net experience loss is suspended by reason of this 
     subparagraph.
       ``(v) Interest accrued on any net experience loss during a 
     hiatus period shall be charged to a reconciliation account 
     and not to the funding standard account.
       ``(vi) If a plan elects an amortization hiatus under this 
     subparagraph and section 412(b)(7)(F) of the Internal Revenue 
     Code of 1986 for any plan year, the plan administrator shall 
     provide, within 30 days of filing the election for such year, 
     written notice of the election to participants and 
     beneficiaries, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan, and to the Pension 
     Benefit Guaranty Corporation. Such notice shall include with 
     respect to any election the amount of the net experience loss 
     to be deferred and the period of the deferral. Such notice 
     shall also include the maximum guaranteed monthly benefits 
     which such Corporation would pay if the plan terminated while 
     underfunded. The first sentence of such notice shall also 
     provide a statement that the plan elected to defer an amount 
     of its investment losses and as a result the plan may not 
     have enough money to pay all benefits if the plan requires 
     financial assistance from such Corporation.
       ``(vii) An election under this subparagraph shall be filed 
     with the Secretary within 30 days after the beginning of the 
     plan year to which the election applies (or, if later, 30 
     days after the date of the enactment of this subparagraph). 
     The plan administrator of any multiemployer plan that elects 
     an amortization hiatus under this subparagraph and section 
     412(b)(7)(F) of the Internal Revenue Code of 1986 for any 
     plan year must provide to the Pension Benefit Guaranty 
     Corporation the actuarial information required by section 
     4010 as if the plan were subject to those requirements for 
     that plan year and the following 4 plan years. The 
     Corporation may make public asset, liability, and funded 
     percentage information.''
       (2) Penalty.--Section 502(c)(4) of such Act (29 U.S.C. 
     1132(c)(4)) is amended to read as follows:
       ``(4) The Secretary may assess a civil penalty of not more 
     than $1,000 a day for each violation by any person of section 
     302(b)(7)(F)(vi).''
       (b) Amendments to the Internal Revenue Code of 1986.--
       (1) In general.--Section 412(b)(7) of the Internal Revenue 
     Code of 1986 (relating to special rules for multiemployer 
     plans) is amended by adding at the end the following new 
     subparagraph:
       ``(F) Amortization hiatus.--
       ``(i) In general.--If a multiemployer plan has a net 
     experience loss for any plan year beginning after June 30, 
     2002, and before July 1, 2006--

       ``(I) the plan may elect to have the 15-year amortization 
     period under paragraph (2)(B)(iv) with respect to the loss 
     begin in any plan year selected by the plan from among the 3 
     immediately succeeding plan years, and
       ``(II) if the plan makes an election under subclause (I) 
     for any plan year, the net experience loss for the year 
     shall, for purposes of determining any charge to the funding 
     standard account, or interest, with respect to the loss, be 
     treated in the same manner as if it were a net experience 
     loss occurring in the year selected by the plan under 
     subclause (I) (without regard to any net experience loss or 
     gain otherwise determined for such year).

     Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 plan years beginning after June 30, 2002, and before 
     July 1, 2006.
       ``(ii) Restrictions on benefit increases.--An amendment 
     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 shall not take effect for any 
     plan year in the hiatus period, unless--

       ``(I) the funded current liability percentage (as defined 
     in subsection (l)(8)(B), except that all gains and losses 
     shall be immediately recognized and assets shall be valued at 
     their fair market value) as of the end of the plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(II) the plan's actuary certifies that, due to an 
     increase in contribution rates, the normal cost attributable 
     to the benefit increase or other change is expected to be 
     fully funded (solely on account of increased contributions) 
     in the year following the year in which the increase or other 
     change takes effect, and any increase in the plan's accrued 
     liabilities attributable to the benefit increase or other 
     change is expected to be fully funded by the end of the third 
     plan year following the end of the last hiatus period of

[[Page 407]]

     the plan, except that this subclause shall not apply if the 
     funded current liability percentage (as determined under 
     clause (ii)(I)) as of the end of the plan year of the 
     increase is projected (taking into account the increase) to 
     be less than 75 percent, or
       ``(III) the plan amendment is otherwise described in 
     subparagraph (A) or (C) of subsection (f)(2).

       ``(iii) Collectively bargained increases in 
     contributions.--Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf, but only if the collective bargaining agreement 
     was in effect on the date of the enactment of this clause.
       ``(iv) Hiatus period defined.--For purposes of this 
     subparagraph, the term `hiatus period' means any period 
     during which the amortization of a net experience loss is 
     suspended by reason of this subparagraph.
       ``(v) Interest accrued during hiatus.--Interest accrued on 
     any net experience loss during a hiatus period shall be 
     charged to a reconciliation account and not to the funding 
     standard account.
       ``(vi) Election.--An election under this subparagraph shall 
     be filed with the Secretary of Labor within 30 days after the 
     beginning of the plan year to which the election applies (or, 
     if later, 30 days after the date of the enactment of this 
     subparagraph). The plan administrator of any multiemployer 
     plan that elects an amortization hiatus under this 
     subparagraph or section 302(b)(7)(F) of the Employee 
     Retirement Income Security Act of 1974 for any plan year must 
     provide to the Pension Benefit Guaranty Corporation the 
     actuarial information required by section 4010 of the 
     Employee Retirement Income Security Act of 1974 as if the 
     plan were subject to those requirements for that plan year 
     and the following 4 plan years. The Corporation may make 
     public asset, liability, and funded percentage information.''
       (2) Qualification requirement.--Section 401(a) of such Code 
     is amended by inserting after paragraph (34) the following 
     new paragraph:
       ``(35) Benefit increases in certain multiemployer plans.--A 
     trust which is part of a plan shall not constitute a 
     qualified trust under this section if the plan adopts an 
     amendment during a hiatus period (within the meaning of 
     section 412(b)(7)(F)(iv)) which the plan is prohibited from 
     adopting by reason of section 412(b)(7)(F)(ii).''
                                 ______
                                 
  SA 2238. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike section 3 and insert:

     SEC. 3. ELECTION OF ALTERNATIVE DEFICIT REDUCTION 
                   CONTRIBUTION.

       (a) Amendment of 1986 Code.--Section 412(l) of the Internal 
     Revenue Code of 1986 (relating to applicability of 
     subsection) is amended by adding at the end the following new 
     paragraph:
       ``(12) Alternative increase for certain plans meeting 
     requirements in 2000.--
       ``(A) In general.--In the case of a defined benefit plan 
     established and maintained by an applicable employer, if this 
     subsection did not apply to the plan for the plan year 
     beginning in 2000 (determined without regard to paragraph 
     (6)), then, at the election of the employer, the increased 
     amount under paragraph (1) for any applicable plan year shall 
     be the greater of--
       ``(i) 20 percent (40 percent in the case of an applicable 
     plan year beginning after December 27, 2004) of the increased 
     amount under paragraph (1) determined without regard to this 
     paragraph, or
       ``(ii) the increased amount which would be determined under 
     paragraph (1) if the deficit reduction contribution under 
     paragraph (2) for the applicable plan year were determined 
     without regard to subparagraphs (A), (B), and (D) of 
     paragraph (2).
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any applicable plan 
     year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--

       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,

       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of subsection (f)(2).

     If a plan is amended during any applicable plan year in 
     violation of the preceding sentence, any election under this 
     paragraph shall not apply to any applicable plan year ending 
     on or after the date on which such amendment is adopted.
       ``(C) Applicable employer.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable employer' means an 
     employer which is--

       ``(I) a commercial passenger airline,
       ``(II) primarily engaged in the production or manufacture 
     of a steel mill product, or
       ``(III) an organization described in section 501(c)(5) and 
     which established the plan to which this paragraph applies on 
     June 30, 1955.

       ``(D) Applicable plan year.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable plan year' means 
     any plan year beginning after December 27, 2003, and before 
     December 28, 2005, for which the employer elects the 
     application of this paragraph.
       ``(ii) Limitation on number of years which may be 
     elected.--An election may not be made under this paragraph 
     with respect to more than 2 plan years.
       ``(E) Election.--An election under this paragraph shall be 
     filed with the Secretary within 30 days after the beginning 
     of the plan year to which the election applies (or, if later, 
     within 30 days after the date of the enactment of this 
     paragraph).''
       (b) Amendment of ERISA.--Section 302(d) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(d)) is 
     amended by adding at the end the following new paragraph:
       ``(12) Alternative increase for certain plans meeting 
     requirements in 2000.--
       ``(A) In general.--In the case of a defined benefit plan 
     established and maintained by an applicable employer, if this 
     subsection did not apply to the plan for the plan year 
     beginning in 2000 (determined without regard to paragraph 
     (6)), then, at the election of the employer, the increased 
     amount under paragraph (1) for any applicable plan year shall 
     be the greater of--
       ``(i) 20 percent (40 percent in the case of an applicable 
     plan year beginning after December 27, 2004) of the increased 
     amount under paragraph (1) determined without regard to this 
     paragraph, or
       ``(ii) the increased amount which would be determined under 
     paragraph (1) if the deficit reduction contribution under 
     paragraph (2) for the applicable plan year were determined 
     without regard to subparagraphs (A), (B), and (D) of 
     paragraph (2).
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any 
     applicable plan year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--

       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,

       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of section 304(b)(2).

     If a plan is amended during any applicable plan year in 
     violation of the preceding sentence, any election under this 
     paragraph shall not apply to any applicable plan year ending 
     on or after the date on which such amendment is adopted.
       ``(C) Applicable employer.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable employer' means an 
     employer which is--

       ``(I) a commercial passenger airline,
       ``(II) primarily engaged in the production or manufacture 
     of a steel mill product, or
       ``(III) an organization described in section 501(c)(5) of 
     the Internal Revenue Code of 1986

[[Page 408]]

     and which established the plan to which this paragraph 
     applies on June 30, 1955.

       ``(D) Applicable plan year.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable plan year' means 
     any plan year beginning after December 27, 2003, and before 
     December 28, 2005, for which the employer elects the 
     application of this paragraph.
       ``(ii) Limitation on number of years which may be 
     elected.--An election may not be made under this paragraph 
     with respect to more than 2 plan years.
       ``(E) Notice requirements for plans electing alternative 
     deficit reduction contributions.--
       ``(i) In general.--If an employer elects an alternative 
     deficit reduction contribution under this paragraph and 
     section 412(l)(12) of the Internal Revenue Code of 1986 for 
     any year, the employer shall provide, within 30 days (120 
     days in the case of an employer described in subparagraph 
     (C)(ii)) of filing the election for such year, written notice 
     of the election to participants and beneficiaries and to the 
     Pension Benefit Guaranty Corporation.
       ``(ii) Notice to participants and beneficiaries.--The 
     notice under clause (i) to participants and beneficiaries 
     shall include with respect to any election--

       ``(I) the due date of the alternative deficit reduction 
     contribution and the amount by which such contribution was 
     reduced from the amount which would have been owed if the 
     election were not made, and
       ``(II) a description of the benefits under the plan which 
     are eligible to be guaranteed by the Pension Benefit Guaranty 
     Corporation and an explanation of the limitations on the 
     guarantee and the circumstances under which such limitations 
     apply, including the maximum guaranteed monthly benefits 
     which the Pension Benefit Guaranty Corporation would pay if 
     the plan terminated while underfunded.

       ``(iii) Notice to pbgc.--The notice under clause (i) to the 
     Pension Benefit Guaranty Corporation shall include--

       ``(I) the information described in clause (ii)(I),
       ``(II) the number of years it will take to restore the plan 
     to full funding if the employer only makes the required 
     contributions, and
       ``(III) information as to how the amount by which the plan 
     is underfunded compares with the capitalization of the 
     employer making the election.

       ``(iv) Public information.--If an employer making an 
     election under this paragraph is a member of a controlled 
     group subject to section 4010, the Pension Benefit Guaranty 
     Corporation may make public the assets, liabilities, and 
     funded liability percentage of any plan maintained by the 
     plan sponsor for any plan year which corresponds to the plan 
     year of the election and each of the 4 succeeding plan years.
       ``(F) Election.--An election under this paragraph shall be 
     filed with the Secretary of the Treasury within 30 days after 
     the beginning of the plan year to which the election applies 
     (or, if later, within 30 days after the date of the enactment 
     of this paragraph).''
       (c) Effect of Election.--An election under section 
     412(l)(12) of the Internal Revenue Code of 1986 or section 
     302(d)(12) of the Employee Retirement Income Security Act of 
     1974 (as added by this section) with respect to a plan shall 
     not invalidate any obligation (pursuant to a collective 
     bargaining agreement in effect on the date of the election) 
     to provide benefits, to change the accrual of benefits, or to 
     change the rate at which benefits become nonforfeitable under 
     the plan .
       (d) Penalty for Failing To Provide Notice.--Section 
     502(c)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1132(c)(3)) is amended by inserting ``or who 
     fails to meet the requirements of section 302(d)(12)(E) with 
     respect to any participant or beneficiary'' after 
     ``101(e)(2)''.
       (e) Limitations on PBGC Liability for Plans to Which 
     Alternative Deficit Reduction Contribution Applies.--
       (1) In general.--If a plan with respect to which an 
     election under section 412(l)(12) of the Internal Revenue 
     Code or section 302(d)(12) of the Employee Retirement Income 
     Security Act of 1974 (as added by this section) is made 
     terminates during the applicable period, the maximum 
     guarantee limitation under section 4022(b)(3) of such Act, 
     and the phase-in rate of benefit increases under paragraph 
     (5) or (7) of section 4022(b) of such Act, shall be the 
     limitation and rates determined as if the plan terminated on 
     the day before the first day of the applicable period.
       (2) Applicable period.--For purposes of paragraph (1), the 
     term ``applicable period'' means, with respect to any plan, 
     the period--
       (A) beginning on the first day of the first applicable plan 
     year with respect to the plan, and
       (B) ending on the last day of the fourth plan year 
     following the last applicable plan year with respect to the 
     plan.

     For purposes of this paragraph, the term ``applicable plan 
     year'' has the meaning given such term by section 412(l)(12) 
     of the Internal Revenue Code of 1986 and section 302(d)(12) 
     of the Employee Retirement Income Security Act of 1974 (as 
     added by this section).
       (f) Election.--Each election under section 412(l)(12) of 
     the Internal Revenue Code of 1986 or section 302(d)(12) of 
     the Employee Retirement Income Security Act of 1974 (as added 
     by this section) shall be counted as an election of a funding 
     waiver for purposes of section 412(d)(1) of the Internal 
     Revenue Code of 1986.
                                 ______
                                 
  SA 2239. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 12, line 10 through page 13, line 6 and strike 
     page 16, line 24 through page 17, line 20.
                                 ______
                                 
  SA 2240. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 10, line 13 through page 11, line 14 and 
     insert:
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any applicable plan 
     year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--
       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,
       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of subsection (f)(2).''
       Strike page 15, line 1 through page 16, line 8 and insert:
       ``(B) Restrictions on benefit increases.--No amendment 
     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 shall be adopted during any applicable plan 
     year, unless--
       ``(i) the funded current liability percentage (as defined 
     in paragraph (8)(B)) as of the end of such plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(ii) the amendment provides for an increase in benefits 
     under a formula which is not based on a participant's 
     compensation, but only if the rate of such increase is not in 
     excess of the lesser of--
       ``(I) the contemporaneous rate of increase in average wages 
     of participants covered by the amendment, or
       ``(II) the increase in the consumer price index for the 
     preceding year,
       ``(iii) the amendment is required by a collective 
     bargaining agreement which is in effect on the date of 
     enactment of this subparagraph, except that this clause shall 
     not apply if the funded current liability percentage (as 
     defined in paragraph (8)(B)) as of the end of such plan year 
     is projected (taking into account the effect of the 
     amendment) to be less than 75 percent, or
       ``(iv) the amendment is otherwise described in subparagraph 
     (A) or (C) of section 304(b)(2).''
                                 ______
                                 
  SA 2241. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend

[[Page 409]]

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; 
which was ordered to lie on the table; as follows:

       Starting on page 21, line 4, insert the following new 
     paragraph (e):
       ``(e) Election.--Each election under section 412(1)(12) of 
     the Internal Revenue Code of 1986 or section 302(d)(12) of 
     the Employee Retirement Income Security Act of 1974 (as added 
     by this section) shall be counted as an election of a funding 
     waiver for purposes of section 412(d)(1) of the Internal 
     Revenue Code of 1986.''
                                 ______
                                 
  SA 2242. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Starting on page 20, line 22, insert at the end the 
     following new sentence:
       ``If an employer makes an election for a plan under section 
     412(l)(12) of the Internal Revenue Code of 1986 or section 
     302(d)(12) of the Employee Retirement Income Security Act of 
     1974 (as added by this section), and if that plan terminates 
     within four years after the end of the plan year to which the 
     election applies, the maximum guarantee limitation under 
     section 422(b)(3) of the Employee Retirement Income Security 
     Act of 1974 and the phase-in rate of benefit increases under 
     section 4022(b)(5) and (7) of the Employee Retirement Income 
     Security Act of 1974 shall be frozen as of the beginning of 
     the plan year to which the election applied.''
                                 ______
                                 
  SA 2243. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Starting on page 20, line 10, insert at the end the 
     following subparagraph:
       ``(iv) If the employer is part of a controlled group 
     subject to section 4010 of the Employee Retirement Income 
     Security Act of 1074, the Pension Benefit Guaranty 
     Corporation may make public the assets, liabilities, and 
     funded percentage for that plan year and the following four 
     plan years for any plan maintained by the controlled group.''
                                 ______
                                 
  SA 2244. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 13, lines 20 through 22, and insert:
       ``(E) Election.--An election under this paragraph shall be 
     made within 30 days after the beginning of the plan year to 
     which the election applies, or if later, within 30 days of 
     enactment, by filing with the Secretary in such manner as the 
     Secretary may prescribe.''
       Strike page 20, lines 10 through 13, and insert:
       ``(F) Election.--An election under this paragraph shall be 
     made within 30 days after the beginning of the plan year to 
     which the election applies, or if later, within 30 days of 
     enactment, by filing with the Secretary in such manner as the 
     Secretary may prescribe.''
                                 ______
                                 
  SA 2245. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

         Strike sections 4 and 5 and insert:

     SEC. 4. MULTIEMPLOYER PLAN FUNDING NOTICES.

       (a) In General.--Section 104 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 104) is amended by 
     redesignating subsection (d) as subsection (e) and by 
     inserting after subsection (c) the following new subsection:
       ``(d) Multiemployer Defined Benefit Plan Funding Notices.--
       ``(1) In general.--The administrator of a defined benefit 
     plan which is a multiemployer plan shall for each plan year 
     provide a plan funding notice to each plan participant and 
     beneficiary, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan, and to the Pension 
     Benefit Guaranty Corporation.
       ``(2) Information contained in notices.--
       ``(A) Identifying information.--Each notice required under 
     paragraph (1) shall contain identifying information, 
     including the name of the plan, the address and phone number 
     of the plan administrator and the plan's principal 
     administrative officer, each plan sponsor's employer 
     identification number, and the plan number of the plan.
       ``(B) Specific information.--A plan funding notice under 
     paragraph (1) shall include--
       ``(i) a statement as to whether the plan's funded current 
     liability percentage (as defined in section 302(d)(8)(B), 
     except that all gains and losses shall be immediately 
     recognized and assets shall be valued at their fair market 
     value) for the plan year to which the notice relates is at 
     least 100 percent (and, if not, the actual percentage);
       ``(ii) a statement of the fair market value of the plan's 
     assets, the amount of benefit payments, and the ratio of the 
     assets to the payments for the plan year to which the report 
     relates;
       ``(iii) a summary of the rules governing insolvent 
     multiemployer plans, including the limitations on benefit 
     payments and any potential benefit reductions and suspensions 
     (and the potential effects of such limitations, reductions, 
     and suspensions on the plan); and
       ``(iv) a general description of the benefits under the plan 
     which are eligible to be guaranteed by the Pension Benefit 
     Guaranty Corporation, along with an explanation of the 
     limitations on the guarantee and the circumstances under 
     which such limitations apply.
       ``(C) Other information.--Each notice under paragraph (1) 
     shall include any additional information which the plan 
     administrator elects to include to the extent permitted under 
     regulations prescribed by the Secretary.
       ``(3) Time for providing notice.--Any notice under 
     paragraph (1) shall be provided no later than two months 
     after the deadline (including extensions) for filing the 
     annual report for the plan year to which the notice relates.
       ``(4) Form and manner.--Any notice under paragraph (1)--
       ``(A) shall be written in a manner so as to be understood 
     by the average plan participant, and
       ``(B) may be provided in written, electronic, or other 
     appropriate form to the extent such form is reasonably 
     accessible to persons to whom the notice is required to be 
     provided.''
       (b) Penalties.--Section 502(c)(1) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(1)) 
     is amended by striking ``or section 101(e)(1)'' and inserting 
     ``, section 101(e)(1), or section 104(d)''.
       (c) Regulations and Model Notice.--The Secretary of Labor 
     may issue regulations (including a model notice) that 
     implement the amendments made by this section. If such 
     regulations are not issued, the administrator of a defined 
     benefit plan which is a multiemployer plan shall comply with 
     the provisions of section 4011 of the Employee Retirement 
     Income Security Act of 1974 in a reasonable manner to the 
     extent necessary to meet the notice requirements of such 
     amendments.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2003.

     SEC. 5. AMORTIZATION HIATUS FOR NET EXPERIENCE LOSSES IN 
                   MULTIEMPLOYER PLANS.

       (a) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) In general.--Section 302(b)(7) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C.1082(b)(7)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(F)(i) If a multiemployer plan has a net experience loss 
     for any plan year beginning after June 30, 2002, and before 
     July 1, 2006--
       ``(I) the plan may elect to have the 15-year amortization 
     period under paragraph (2)(B)(iv) with respect to the loss 
     begin in any plan year selected by the plan from

[[Page 410]]

     among the 3 immediately succeeding plan years, and
       ``(II) if the plan makes an election under subclause (I) 
     for any plan year, the net experience loss for the year 
     shall, for purposes of determining any charge to the funding 
     standard account, or interest, with respect to the loss, be 
     treated in the same manner as if it were a net experience 
     loss occurring in the year selected by the plan under 
     subclause (I) (without regard to any net experience loss or 
     gain otherwise determined for such year).
     Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 plan years beginning after June 30, 2002, and before 
     July 1, 2006.
       ``(ii) An amendment 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 shall not take 
     effect for any plan year in the hiatus period, unless--
       ``(I) the funded current liability percentage (as defined 
     in subsection (d)(8)(B), except that all gains and losses 
     shall be immediately recognized and assets shall be valued at 
     their fair market value) as of the end of the plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(II) the plan's actuary certifies that, due to an 
     increase in contribution rates, the normal cost attributable 
     to the benefit increase or other change is expected to be 
     fully funded (solely on account of increased contributions) 
     in the year following the year the increase or other change 
     takes effect, and any increase in the plan's accrued 
     liabilities attributable to the benefit increase or other 
     change is expected to be fully funded by the end of the third 
     plan year following the end of the last hiatus period of the 
     plan, except that this subclause shall not apply if the 
     funded current liability percentage (as determined under 
     clause (ii)(I)) as of the end of the plan year of the 
     increase is projected (taking into account the increase) to 
     be less than 75 percent, or
       ``(III) the plan amendment is otherwise described in 
     subparagraph (A) or (C) of section 304(b)(2).
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf, but only if the collective bargaining agreement 
     was in effect on the date of the enactment of this clause.
       ``(iv) For purposes of this subparagraph, the term `hiatus 
     period' means any period during which the amortization of a 
     net experience loss is suspended by reason of this 
     subparagraph.
       ``(v) Interest accrued on any net experience loss during a 
     hiatus period shall be charged to a reconciliation account 
     and not to the funding standard account.
       ``(vi) If a plan elects an amortization hiatus under this 
     subparagraph and section 412(b)(7)(F) of the Internal Revenue 
     Code of 1986 for any plan year, the plan administrator shall 
     provide, within 30 days of filing the election for such year, 
     written notice of the election to participants and 
     beneficiaries, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan, and to the Pension 
     Benefit Guaranty Corporation. Such notice shall include with 
     respect to any election the amount of the net experience loss 
     to be deferred and the period of the deferral. Such notice 
     shall also include the maximum guaranteed monthly benefits 
     which such Corporation would pay if the plan terminated while 
     underfunded. The first sentence of such notice shall also 
     provide a statement that the plan elected to defer an amount 
     of its investment losses and as a result the plan may not 
     have enough money to pay all benefits if the plan requires 
     financial assistance from such Corporation.
       ``(vii) An election under this subparagraph shall be filed 
     with the Secretary within 30 days after the beginning of the 
     plan year to which the election applies (or, if later, 30 
     days after the date of the enactment of this subparagraph). 
     The plan administrator of any multiemployer plan that elects 
     an amortization hiatus under this subparagraph and section 
     412(b)(7)(F) of the Internal Revenue Code of 1986 for any 
     plan year must provide to the Pension Benefit Guaranty 
     Corporation the actuarial information required by section 
     4010 as if the plan were subject to those requirements for 
     that plan year and the following 4 plan years. The 
     Corporation may make public asset, liability, and funded 
     percentage information.''
       (2) Penalty.--Section 502(c)(4) of such Act (29 U.S.C. 
     1132(c)(4)) is amended to read as follows:
       ``(4) The Secretary may assess a civil penalty of not more 
     than $1,000 a day for each violation by any person of section 
     302(b)(7)(F)(vi).''
       (b) Amendments to the Internal Revenue Code of 1986.--
       (1) In general.--Section 412(b)(7) of the Internal Revenue 
     Code of 1986 (relating to special rules for multiemployer 
     plans) is amended by adding at the end the following new 
     subparagraph:
       ``(F) Amortization hiatus.--
       ``(i) In general.--If a multiemployer plan has a net 
     experience loss for any plan year beginning after June 30, 
     2002, and before July 1, 2006--

       ``(I) the plan may elect to have the 15-year amortization 
     period under paragraph (2)(B)(iv) with respect to the loss 
     begin in any plan year selected by the plan from among the 3 
     immediately succeeding plan years, and
       ``(II) if the plan makes an election under subclause (I) 
     for any plan year, the net experience loss for the year 
     shall, for purposes of determining any charge to the funding 
     standard account, or interest, with respect to the loss, be 
     treated in the same manner as if it were a net experience 
     loss occurring in the year selected by the plan under 
     subclause (I) (without regard to any net experience loss or 
     gain otherwise determined for such year).

     Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 plan years beginning after June 30, 2002, and before 
     July 1, 2006.
       ``(ii) Restrictions on benefit increases.--An amendment 
     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 shall not take effect for any 
     plan year in the hiatus period, unless--

       ``(I) the funded current liability percentage (as defined 
     in subsection (l)(8)(B), except that all gains and losses 
     shall be immediately recognized and assets shall be valued at 
     their fair market value) as of the end of the plan year is 
     projected (taking into account the effect of the amendment) 
     to be at least 90 percent,
       ``(II) the plan's actuary certifies that, due to an 
     increase in contribution rates, the normal cost attributable 
     to the benefit increase or other change is expected to be 
     fully funded (solely on account of increased contributions) 
     in the year following the year in which the increase or other 
     change takes effect, and any increase in the plan's accrued 
     liabilities attributable to the benefit increase or other 
     change is expected to be fully funded by the end of the third 
     plan year following the end of the last hiatus period of the 
     plan, except that this subclause shall not apply if the 
     funded current liability percentage (as determined under 
     clause (ii)(I)) as of the end of the plan year of the 
     increase is projected (taking into account the increase) to 
     be less than 75 percent, or
       ``(III) the plan amendment is otherwise described in 
     subparagraph (A) or (C) of subsection (f)(2).

       ``(iii) Collectively bargained increases in 
     contributions.--Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf, but only if the collective bargaining agreement 
     was in effect on the date of the enactment of this clause.
       ``(iv) Hiatus period defined.--For purposes of this 
     subparagraph, the term `hiatus period' means any period 
     during which the amortization of a net experience loss is 
     suspended by reason of this subparagraph.
       ``(v) Interest accrued during hiatus.--Interest accrued on 
     any net experience loss during a hiatus period shall be 
     charged to a reconciliation account and not to the funding 
     standard account.
       ``(vi) Election.--An election under this subparagraph shall 
     be filed with the Secretary of Labor within 30 days after the 
     beginning of the plan year to which the election applies (or, 
     if later, 30 days after the date of the enactment of this 
     subparagraph). The plan administrator of any multiemployer 
     plan that elects an amortization hiatus under this 
     subparagraph or section 302(b)(7)(F) of the Employee 
     Retirement Income Security Act of 1974 for any plan year must 
     provide to the Pension Benefit Guaranty Corporation the 
     actuarial information required by section 4010 of the 
     Employee Retirement Income Security Act of 1974 as if the 
     plan were subject to those requirements for that plan year 
     and the following 4 plan years. The Corporation may make 
     public asset, liability, and funded percentage information.''
       (2) Qualification requirement.--Section 401(a) of such Code 
     is amended by inserting after paragraph (34) the following 
     new paragraph:
       ``(35) Benefit increases in certain multiemployer plans.--A 
     trust which is part of a plan shall not constitute a 
     qualified trust under this section if the plan adopts an 
     amendment during a hiatus period (within the meaning of 
     section 412(b)(7)(F)(iv)) which the plan is prohibited from 
     adopting by reason of section 412(b)(7)(F)(ii).''
                                 ______
                                 
  SA 2246. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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

[[Page 411]]

bonds for certain pension plan funding requirements and other 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike page 21, line 12 through line 18 and insert:
       ``(1) In general.--The administrator of a defined benefit 
     plan which is a multiemployer plan shall for each plan year 
     provide a plan funding notice to each plan participant and 
     beneficiary, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan, and to the Pension 
     Benefit Guaranty Corporation.''

                                 ______
                                 
  SA 2247. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 22, line 6 through line 11 and insert:
       ``(i) a statement as to whether the plan's funded current 
     liability percentage (as defined in section 302(d)(8)(B) 
     except that all gains and losses shall be immediately 
     recognized in full and assets shall be valued at fair market 
     value) for the plan year to which the notice relates is at 
     least 100 percent (and, if not, the actual percentage);''

                                 ______
                                 
  SA 2248. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 22, line 12 through line 16 and insert:
       ``(ii) a statement of the fair market value of the plan's 
     assets, the amount of benefit payments, and the ratio of the 
     assets to the payments for the plan year to which the report 
     relates;''

                                 ______
                                 
  SA 2249. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 23, line 6 through line 10 and insert:
       ``(C) Other information.--Each notice under paragraph (1) 
     shall include any additional information which the plan 
     administrator elects to include to the extent permitted by 
     the regulations prescribed by the Secretary.''

                                 ______
                                 
  SA 2250. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 23, line 18 through line 19, and redesignate 
     subparagraphs (B) and (C) as subparagraphs (A) and (B), 
     respectively.
                                 ______
                                 
  SA 2251. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 24, line 7 through line 11 and insert:
       ``(c) Regulations and Model Notice.--The Secretary of Labor 
     may issue regulations (including a model notice) that 
     implement the provisions of this section. If such regulations 
     are not issued, the administrator of a defined benefit plan 
     which is a multiemployer plan shall comply with the 
     provisions of section 4011 of the Employee Retirement Income 
     Security Act of 1974 and the regulations thereunder in a 
     reasonable manner to fulfill the notice requirement under 
     this section.''
                                 ______
                                 
  SA 2252. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 24, line 12 through line 14 and insert:
       ``(d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 
     2003.''
                                 ______
                                 
  SA 2253. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 25, line 16 through line 19 and insert: 
     ``Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 of the plan years beginning after June 30, 2002, and 
     before July 1, 2006.''
       Strike page 29, line 14 through line 18 and insert: 
     ``Notwithstanding the preceding sentence, a plan may elect to 
     have this subparagraph apply to net experience losses for 
     only 2 of the plan years beginning after June 30, 2002, and 
     before July 1, 2006.''
                                 ______
                                 
  SA 2254. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 26, line 1 through line 5 and insert:
       ``(I) the funded current liability percentage (as defined 
     in subsection (d)(8)(B) except that all gains and losses 
     shall be immediately recognized in full and assets shall be 
     valued at fair market value) as of the end of the plan year 
     is projected (taking into account the effect of the 
     amendment) to be at least 90 percent,''
       Strike page 30, line 3 through line 8 and insert:
       ``(I) the funded current liability percentage (as defined 
     in subsection (1)(8)(B) except that all gains and losses 
     shall be immediately recognized in full and assets shall be 
     valued at fair market value) as of the end of the plan year 
     is projected (taking into account the effect of the 
     amendment) to be at least 90 percent,''
                                 ______
                                 
  SA 2255. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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

[[Page 412]]

bonds for certain pension plan funding requirements and other 
provisions, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike page 26, line 6 through 16 and insert:
       ``(II) if the funded current liability percentage is at 
     least 75 percent and the plan's actuary certifies that, due 
     to an increase in contribution rates, the normal cost 
     attributable to the benefit increase or other change is 
     expected to be fully funded solely on account of increased 
     contributions in the year following the year the increase or 
     other change takes effect, and any increase in the plan's 
     accrued liabilities attributable to the benefit increase or 
     other change is expected to be fully funded solely on account 
     of increased contributions by the end of the third plan year 
     following the end of the last hiatus period of the plan, or''
       Strike page 30, line 9 through line 22 and insert:
       ``(II) if the funded current liability percentage is at 
     least 75 percent and the plan's actuary certifies that, due 
     to an increase in contribution rates, the normal cost 
     attributable to the benefit increase or other change is 
     expected to be fully funded solely on account of increased 
     contributions in the year following the year the increase or 
     other change takes effect, and any increase in the plan's 
     accrued liabilities attributable to the benefit increase or 
     other change is expected to be fully funded solely on account 
     of increased contributions by the end of the third plan year 
     following the end of the last hiatus period of the plan, or''
                                 ______
                                 
  SA 2256. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 26, line 20 through line 23 and insert:
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf required by a collective bargaining agreement 
     which is in effect on the date of enactment of this 
     subparagraph.''
       Strike page 31, line 1 through line 6 and insert:
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf required by a collective bargaining agreement 
     which is in effect on the date of enactment of this 
     subparagraph.''
                                 ______
                                 
  SA 2257. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 26, line 20 through line 23 and insert:
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf but in no case shall the rate of increase in 
     such benefits exceed the change in the consumer price index 
     for the preceding year in the case of any collective 
     bargaining agreement which was not in effect on the date of 
     enactment of this subparagraph.''
       Strike page 31, line 1 through line 6 and insert:
       ``(iii) Clause (ii) shall not apply to an increase in 
     benefits for a group of participants resulting solely from a 
     collectively bargained increase in the contributions made on 
     their behalf but in no case shall the rate of increase in 
     such benefits exceed the change in the consumer price index 
     for the preceding year in the case of any collective 
     bargaining agreement which was not in effect on the date of 
     enactment of this subparagraph.''
                                 ______
                                 
  SA 2258. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 27, line 7 through line 21 and insert:
       ``(vi) If a plan elects an amortization hiatus under this 
     subparagraph and section 412(b)(7)(F) of the Internal Revenue 
     Code of 1986 for any plan year, the plan administrator shall 
     provide, within 30 days of filing the election for such year, 
     written notice of the election to participants and 
     beneficiaries, to each labor organization representing such 
     participants or beneficiaries, to each employer that has an 
     obligation to contribute under the plan and to the Pension 
     Benefit Guaranty Corporation. Such notice shall include with 
     respect to any election the amount of the net experience loss 
     to be deferred and the period of deferral. Such notice shall 
     also include the maximum guaranteed monthly benefits which 
     the Pension Benefit Guaranty Corporation would pay if the 
     plan terminated while underfunded. The first sentence of such 
     notice shall also provide a statement that the plan elected 
     to defer the amount of investment losses and as a result the 
     plan may not have enough money to pay all benefits if the 
     plan requires financial assistance from the PBGC.''
                                 ______
                                 
  SA 2259. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself, 
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to 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; 
which was ordered to lie on the table; as follows:

       Strike page 27, line 22 through line 25 and insert:
       ``(viii) An election under this subparagraph shall be filed 
     within 30 days after the beginning of the plan year to which 
     the election applies, or if later, within 30 days after the 
     date of enactment, by filing with the Secretary in such 
     manner as the Secretary, after consultation with the 
     Secretary of Treasury, may prescribe. The plan administrator 
     of any multiemployer plan that elects an amortization hiatus 
     under section 412(b)(7)(F) of the Internal Revenue Code of 
     1986 for any plan year must provide to the Pension Benefit 
     Guaranty Corporation the actuarial information required by 
     section 4010 of the Employee Retirement Income Security Act 
     of 1974 and the regulations thereunder as if the plan were 
     subject to those requirements for that plan year and the 
     following four plan years. The PBGC may make public asset, 
     liability, and funded percentage information.''
                                 ______
                                 
  SA 2260. Mr. SPECTER submitted an amendment intended to be proposed 
by him to 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; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert:

     SEC. __. RESTORATION OF CERTAIN PLANS TERMINATING IN 2003.

       (a) In General.--Notwithstanding any provision of the 
     Internal Revenue Code of 1986 or the Employee Retirement 
     Income Security Act of 1974, the provisions of subsection (b) 
     shall apply to any defined benefit plan that was--
       (1) maintained by a commercial passenger air carrier,
       (2) maintained for the benefit of such carrier's employees 
     pursuant to a collective bargaining agreement, and
       (3) terminated during the calendar year 2003 while the 
     employer was in bankruptcy under chapter 11 of title 11 of 
     the United States Code.
       (b) Restoration of Plan.--The Pension Benefit Guaranty 
     Corporation shall restore any plan described in subsection 
     (a), pursuant to the terms described in subsection (g), and 
     the control of the plan's assets and liabilities shall be 
     transferred to the employer. The date of restoration shall be 
     not later than 60 days after the date the terms of the plan 
     are determined pursuant to subsection (g).
       (c) Exclusion of Expected Increase in Current Liability.--
     In applying section 412(l)(1)(A)(i) of such Code and section 
     302(d)(1)(A)(i) of such Act with respect to a plan restored 
     under subsection (b), any expected increase in current 
     liability due to benefits accruing during each plan year as 
     described in section 412(1)(2)(C) of such Code and section 
     302(d)(2)(C) of such Act shall be excluded.

[[Page 413]]

       (d) Amortization of Unfunded Amounts Under Restoration 
     Payment Schedule.--
       (1) Post-restoration initial unfunded accrued liability.--
     In the case of a plan restored under subsection (b)--
       (A) the initial post-restoration valuation date for a plan 
     described in subsection (a) shall be January 1 of the 
     calendar year following the date of restoration,
       (B) the initial restoration amortization base for a plan 
     described in subsection (a) shall be an amount equal to the 
     excess of--
       (i) the accrued benefit liabilities returned by the 
     Corporation, over
       (ii) the market value of plan assets returned by the 
     Corporation, and
       (C) the initial restoration amortization base shall be 
     amortized in level annual installments over a period 
     determined pursuant to subsection (g) but not to exceed 30 
     years after the initial post-restoration valuation date, and 
     the funding standard account of the plan under section 412 of 
     such Code and section 302 of such Act shall be charged with 
     such installments.
       (2) Unfunded section 412(l) restoration liability.--For 
     purposes of section 412 of such Code and section 302 of such 
     Act, in the case of a plan restored under subsection (b)--
       (A) the initial post-restoration valuation date for a plan 
     described in subsection (a) shall be January 1 of the 
     calendar year following the date of restoration,
       (B) the unfunded section 412(l) restoration liability shall 
     be an amount equal to the excess of--
       (i) the current liability returned by the Corporation, over
       (ii) the market value of plan assets returned by the 
     Corporation, and
       (C) the unfunded section 412(l) restoration liability 
     amount shall be equal to the unfunded section 412(l) 
     restoration liability amortized in level annual installments 
     over a period determined pursuant to subsection (g) but not 
     to exceed 30 years after the initial post-restoration 
     valuation date.
       (3) Rules of special application.--In applying the 30-year 
     amortization described in paragraph (1)(C) or (2)(C)--
       (A) the assumed interest rate for purposes of paragraph 
     (1)(C) shall be the valuation interest rate used to determine 
     the accrued liability under section 412(c) of such Code and 
     section 302(c) of such Act,
       (B) the assumed interest rate for purposes of paragraph 
     (2)(C) shall be the interest rate used to determine current 
     liability as of the initial post-restoration valuation date 
     under section 412(l) of such Code and section 302(d) of such 
     Act,
       (C) the actuarial value of assets as of the initial post-
     restoration valuation date shall be reset to the market value 
     of assets with a 5-year phase-in of unexpected investment 
     gains or losses on a prospective basis, and
       (D) for plans using the frozen initial liability (FIL) 
     funding method in accordance with section 412(c) of such Code 
     and section 302(c) of such Act, the initial unfunded 
     liability used to determine normal cost shall be reset to the 
     initial restoration amortization base.
       (e) Quarterly Contributions.--The requirements of section 
     412(m) of such Code and section 302(e) of such Act shall not 
     apply to a plan restored under subsection (b) until the plan 
     year beginning on the initial post-restoration valuation 
     date. The required annual payment for that year shall be the 
     lesser of--
       (1) the amount determined under section 412(m)(4)(B)(i) of 
     such Code and section 302(e)(4)(B)(i) of such Act, or
       (2) 100 percent of the amount required to be contributed 
     under the plan for the plan year beginning January 1, 2003, 
     and ending on the date of plan termination.
       (f) Resetting of Funding Standard Account Balances.--In the 
     case of a plan restored under subsection (b), any accumulated 
     funding deficiency or credit balance in the funding standard 
     account under section 412 of such Code or section 302 of such 
     Act shall be set equal to zero as of the initial post-
     restoration valuation date.
       (g) Terms of Restored Plan.--
       (1) In general.--The terms of a plan which is restored 
     pursuant to subsection (b) shall be determined by mutual 
     agreement of the employer and the collective bargaining 
     representative of employees covered by the plan. If such 
     parties are unable to reach mutual agreement on such terms, 
     then the terms of the restored plan will be determined by a 
     neutral arbitrator. The neutral arbitrator will be selected 
     by the parties within 7 days after the earlier of the date 
     the parties reach an impasse or 60 days after the date of the 
     enactment of this Act. The neutral arbitrator will be 
     selected by the parties from a panel of neutrals provided by 
     the National Mediation Board. The neutral arbitrator will 
     render his or her determination not later than 120 days after 
     the date of the enactment of this Act. Such determination 
     shall be final and binding on the parties.
       (2) Specific terms.--The terms of the restored plan are 
     subject to the following:
       (A) Benefits under the restored plan for any participant or 
     group of participants may not be greater than, but may be 
     less than, those under the plan prior to its termination, and 
     forms of distribution under the restored plan for any 
     participant or group of participants may exclude forms 
     available under the plan prior to its termination, and any 
     such reductions in benefits or forms of distribution shall be 
     deemed to comply with section 411(d)(6) of such Code and 
     section 204(g) of such Act.
       (B) For any participant, benefits under the restored plan 
     shall be offset by the value of contributions made on behalf 
     of such participant to any defined contribution pension plan 
     established by the parties in conjunction with the 
     termination of the restored plan.
       (C) The amortization periods for the initial restoration 
     amortization base and the unfunded section 412(l) restoration 
     liability shall not exceed 30 years.
       (D) The minimum required cost of the restored plan shall 
     not be less than the greater of--
       (i) the projected cost of any defined contribution pension 
     plan established in conjunction with the termination of the 
     restored plan, or
       (ii) the amount allowed as costs under the employer's 
     original plan of reorganization for all of the employer's 
     retirement plans minus the minimum required cost determined 
     as of the plan restoration date of all of the employer's 
     retirement plans excluding the restored plan.
       (h) PBGC Liability Limited.--In the case of any plan which 
     is described in subsection (a), which is restored pursuant to 
     subsection (b), and which subsequently terminates with a date 
     of plan termination before the end of the fifth calendar year 
     after the date of restoration, section 4022 of the Employee 
     Retirement Income Security Act of 1974 shall be applied as if 
     the plan had been amended to provide that participants would 
     receive no credit for benefit accrual purposes under the plan 
     for service on and after the first day of the plan year 
     beginning after the date of the enactment of this Act.
       (i) Effective Date.--This section shall apply to plan years 
     beginning after December 31, 2002.
                                 ______
                                 
  SA 2261. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to 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; which was ordered to lie 
on the table; as follows:

       At the end, add:

     SEC. __. EXTENSION OF TRANSFERS OF EXCESS PENSION ASSETS TO 
                   RETIREE HEALTH ACCOUNTS.

       (a) Amendment of Internal Revenue Code of 1986.--Paragraph 
     (5) of section 420(b) of the Internal Revenue Code of 1986 
     (relating to expiration) is amended by striking ``December 
     31, 2005'' and inserting ``December 31, 2013''.
       (b) Amendments of ERISA.--
       (1) Section 101(e)(3) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by 
     striking ``Tax Relief Extension Act of 1999'' and inserting 
     ``Pension Stability Act''.
       (2) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is 
     amended by striking ``Tax Relief Extension Act of 1999'' and 
     inserting ``Pension Stability Act''.
       (3) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 
     1108(b)(3)) is amended--
       (A) by striking ``January 1, 2006'' and inserting ``January 
     1, 2014'', and
       (B) by striking ``Tax Relief Extension Act of 1999'' and 
     inserting ``Pension Stability Act''.

     SEC. __. CLARIFICATION OF EXEMPTION FROM TAX FOR SMALL 
                   PROPERTY AND CASUALTY INSURANCE COMPANIES.

       (a) In General.--Section 501(c)(15)(A) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(A) Insurance companies (as defined in section 816(a)) 
     other than life (including interinsurers and reciprocal 
     underwriters) if--
       ``(i) the gross receipts for the taxable year do not exceed 
     $600,000, and
       ``(ii) more than 50 percent of such gross receipts consist 
     of premiums.''.
       (b) Controlled Group Rule.--Section 501(c)(15)(C) of the 
     Internal Revenue Code of 1986 is amended by inserting ``, 
     except that in applying section 1563 for purposes of section 
     831(b)(2)(B)(ii), subparagraphs (B) and (C) of section 
     1563(b)(2) shall be disregarded'' before the period at the 
     end.
       (c) Conforming Amendment.--Clause (i) of section 
     831(b)(2)(A) of the Internal Revenue Code of 1986 is amended 
     by striking ``exceed $350,000 but''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. __. DEFINITION OF INSURANCE COMPANY FOR SECTION 831.

       (a) In General.--Section 831 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (c) as 
     subsection (d) and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Insurance Company Defined.--For purposes of this 
     section, the term `insurance company' has the meaning given 
     to such term by section 816(a)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.

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