[Congressional Record (Bound Edition), Volume 152 (2006), Part 18]
[Senate]
[Pages 23544-23545]
[From the U.S. Government Publishing Office, www.gpo.gov]




 PROVIDING OPTIONAL FUNDING RULES FOR EMPLOYERS IN APPLICABLE MULTIPLE 
                         EMPLOYER PENSION PLANS

  Mr. STEVENS. I send a bill to the desk and ask unanimous consent for 
its immediate consideration.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 4121) to provide optional funding rules for 
     employers in applicable multiple employer pension plans.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. STEVENS. Mr. President, a year ago I raised the issue of the 
problem of the small timber industry in Alaska, and we had an amendment 
to be offered to the tax bill. I was asked not to proceed then, and I 
received a commitment that this amendment would be included in the next 
tax bill as a technical correction. We thought it was going to be in 
this year again, and I discovered it is not in the bill.
  What this bill does, it deals with the problem created in the timber 
industry in southeastern Alaska when a series of companies failed and 
they left a situation where the pension plan is supported only by the 
surviving companies. These companies have the obligation to pay the 
pensions of those who retired from other companies that failed, prior 
to their demise, but they found they cannot do that and survive unless 
the time within which the payments are to be made is extended. That 
will be the purpose of this bill. The purpose of this bill is to extend 
the time so that the surviving companies can pay not only their own 
employer contribution for their own employees but for the employees of 
the companies that failed.
  I have been told today that this bill affects 600 to 1,000 jobs in 
southeastern Alaska now and up to 2,000 employees who already retired. 
Unless the time is extended, the surviving companies will fail and the 
existing employees will lose their jobs and those who have already 
retired will not get their pensions.
  I conferred with our friend, the chairman on the House side, Chairman 
Thomas. I suggested the only way to deal with this now, since the House 
has already passed this bill without the amendment in it, would be to 
have this independent bill passed. I am grateful to all who have been 
considering this bill all day long. It has been an all-day-long 
proposition, and I do hope it will be passed now so that we may try to 
see if the House can pass it before they adjourn.
  I do urge immediate passage of the bill.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed for a third reading, was read 
the third time, and passed, as follows:

                                S. 4121

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. TREATMENT OF LIABILITY FOR CERTAIN MULTIPLE 
                   EMPLOYER PLANS.

       (a) In General.--In the case of an applicable pension 
     plan--
       (1) if an eligible employer elects the application of 
     subsection (b), any liability of the employer with respect to 
     the applicable pension plan shall be determined under 
     subsection (b), and
       (2) if an eligible employer does not make such election, 
     any liability of the employer with respect to the applicable 
     pension plan shall be determined under subsection (c).
       (b) Election to Spin Off Liability.--
       (1) In general.--If an eligible employer elects, within 180 
     days after the date of the enactment of this Act, to have 
     this subsection apply, the applicable pension plan shall be 
     treated as having, effective January 1, 2006, spun off such 
     employer's allocable portion of the plan's assets and 
     liabilities to an eligible spunoff plan and the employer's 
     liability with respect to the applicable pension plan shall 
     be determined by reference to the eligible spunoff plan in 
     the manner provided under paragraph (2). The employer's 
     liability, as so determined, shall be in lieu of any other 
     liability to the Pension Benefit Guaranty Corporation or to 
     the applicable pension plan with respect to the applicable 
     pension plan.
       (2) Liability of employers electing spinoff.--
       (A) Ongoing funding liability.--
       (i) In general.--In the case of an eligible spunoff plan, 
     the amendments made by section 401, and subtitles A and B of 
     title I, of the Pension Protection Act of 2006 shall not 
     apply to plan years beginning before the first plan year for 
     which the plan ceases to be an eligible spunoff plan (or, if 
     earlier, January 1, 2017), and except as provided in clause 
     (ii), the employer maintaining such plan shall be liable for 
     ongoing contributions to the eligible spunoff plan on the 
     same terms and subject to the same conditions as under the 
     provisions of the Employee Retirement Income Security Act of 
     1974 and the Internal Revenue Code of 1986 as in effect 
     before such amendments. Such liability shall be in lieu of 
     any other liability to the Pension Benefit Guaranty 
     Corporation or to the applicable pension plan with respect to 
     the applicable pension plan.
       (ii) Interest rate.--In applying section 302(b)(5)(B) of 
     the Employee Retirement Income Security Act of 1974 and 
     section 412(b)(5)(B) of the Internal Revenue Code of 1986 (as 
     in effect before the amendments made by subtitles A and B of 
     title I of the Pension Protection Act of 2006) and in 
     applying section 4006(a)(3)(E)(iii) of such Act (as in effect 
     before the amendments made by section 401 of such Act) to an 
     eligible spunoff plan for plan years beginning after December 
     31, 2007, and before the first plan year to which such 
     amendments apply, the third segment rate determined under 
     section 303(h)(2)(C)(iii) of such Act and section 
     430(h)(2)(C)(iii) of such Code (as added by such amendments) 
     shall be used in lieu of the interest rate otherwise used.
       (B) Termination liability.--If an eligible spunoff plan 
     terminates under title IV of the

[[Page 23545]]

     Employee Retirement Income Security Act of 1974 on or before 
     December 31, 2010, the liability of the employer maintaining 
     such plan resulting from such termination under section 4062 
     of the Employee Retirement Income Security Act of 1974 shall 
     be determined in accordance with the assumptions and methods 
     described in subsection (c)(2)(A). The employer's liability, 
     as so determined, shall be in lien of any other liability to 
     the Pension Benefit Guaranty Corporation or to the applicable 
     pension plan with respect to the applicable pension plan.
       (c) Liability of Employers Not Electing Spinoff.--
       (1) In general.--If an applicable pension plan is 
     terminated under the Employee Retirement Income Security Act 
     of 1974, an eligible employer which does not make the 
     election described in subsection (b) shall be liable to the 
     corporation with respect to the applicable pension plan (in 
     lieu of any other liability to the Pension Benefit Guaranty 
     Corporation or to the applicable pension plan with respect to 
     the applicable pension plan ) in an amount equal to the 
     fractional portion of the adjusted unfunded benefit 
     liabilities of such plan as of December 31, 2005, determined 
     without regard to any adjusted unfunded benefit liabilities 
     to be transferred to an eligible spunoff plan pursuant to 
     subsection (b).
       (2) Definitions.--For purposes of this subsection--
       (A) Adjusted unfunded benefit liabilities.--The term 
     ``adjusted unfunded benefit liabilities'' means the amount of 
     unfunded benefit liabilities (as defined in section 
     4001(a)(18) of the Employee Retirement Income Security Act of 
     1974), except that the interest assumption shall be the rate 
     of interest under section 302(b) of the Employee Retirement 
     Income Security Act of 1974 and section 412(b) of the 
     Internal Revenue Code of 1986, as in effect before the 
     amendments made by the Pension Protection Act of 2006, for 
     the most recent plan year for which such rate exists.
       (B) Fractional portion.--The term ``fractional portion'' 
     means a fraction, the numerator of which is the amount 
     required to be contributed to the applicable pension plan for 
     the 5 plan years ending before December 31, 2005, by such 
     employer, and the denominator of which is the amount required 
     to be contributed to such plan for such plan years by all 
     employers which do not make the election described in 
     subsection (b).
       (d) Other Definitions.--For purposes of this section--
       (1) Applicable pension plan.--The term ``applicable pension 
     plan'' means a single employer plan which--
       (A) was established in the State of Alaska on March 18, 
     1967, and
       (B) as of January 1, 2005, had 2 or more contributing 
     sponsors at least 2 of which were not under common control.
       (2) Allocable portion.--The term ``allocable portion'' 
     means, with respect to any eligible employer making an 
     election under subsection (b), the portion of an applicable 
     pension plan's liabilities and assets which bears the same 
     ratio to all such liabilities and assets as such employer's 
     share (determined under subsection (c) as if no eligible 
     employer made an election under subsection (b)) of the excess 
     (if any) of--
       (A) the liabilities of the plan, valued in accordance with 
     subsection (c), over
       (B) the assets of the plan,
     bears to the total amount of such excess.
       (3) Eligible employer.--An ``eligible employer'' is an 
     employer which participated in an eligible multiple employer 
     plan on or after January 1, 2000.

  Mr. REID. I move to reconsider the bill.
  Mr. STEVENS. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. GRASSLEY. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                              SUSAN MCCUE

  Mr. REID. Mr. President, for 16 years I have had a woman working for 
me who has been outstanding. She has worked in my press department for 
the last 8 years. She has been my chief of staff. Her name is Susan 
McCue. She has a wonderful background. She is one of 10 children. She 
put herself through college working as a waitress, among other things. 
She is a graduate of Rutgers University with a bachelor's degree.
  Some people are born with the ability to jump high and throw balls a 
long ways, and some people go to the finest business schools in the 
country to learn how to manage people. Susan has an innate ability, as 
if she were a skilled athlete, a skill to be an administrator. What she 
did to develop my staff is something that I am sure someday will be 
used as a ``how you should hire a staff in Washington, DC.''
  I have such great affection for Susan. She has worked so hard for me. 
She has decided to leave after 16 years to go downtown and work, 
seeking not a job where she can make a lot of money but working in a 
program that will deal with poor people around the world. She will make 
just a little bit more money than she is being paid right here. But 
being the person she is, a kind, thoughtful, considerate person, she 
thought it was time for a change.
  As hard as it is for me to let someone go who has done such a 
wonderful job for me, I must be as loyal and dedicated to her as she 
has been to me.
  I want everyone to know--and I especially want Susan to know--that 
her work on my behalf has been something that I and my family will long 
remember. I have never had anyone in my professional career as a 
lawyer, as a government worker, who has been more dedicated or more 
skilled than Susan McCue. I will miss her greatly. I know our paths 
will cross, but I am a better person for having had her run my office. 
And poor people of the world will be well served with Susan McCue 
looking after them.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. DeWINE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Martinez). Without objection, it is so 
ordered.

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