[Congressional Record (Bound Edition), Volume 160 (2014), Part 2]
[Senate]
[Pages 2070-2085]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2692. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 9, line 8, strike ``18 months'' and insert ``3 
     months''.
                                 ______
                                 
  SA 2693. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, insert the following:

     SEC. 110. PREDISASTER HAZARD MITIGATION FUNDING.

       Section 203(g) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5133(g)) is amended--
       (1) in paragraph (9), by striking ``and'' at the end;
       (2) by redesignating paragraph (10) as paragraph (11); and
       (3) by inserting after paragraph (9) the following:
       ``(10) the number of properties in the State or in a 
     community located in an area represented by the local 
     government with a risk premium rate for flood insurance 
     coverage provided under the National Flood Insurance Program 
     (as established under the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.)) of not less than $10,000 per 
     year; and''.
                                 ______
                                 
  SA 2694. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 5, line 3, after the period insert the following: 
     ``The prohibition established under this paragraph shall not 
     apply to any residential property which is not the primary 
     residence of an individual or any business property.''.
                                 ______
                                 
  SA 2695. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 6, between lines 4 and 5, insert the following:
       (4) Elimination of outstanding subsidies for pre-firm 
     properties.--
       (A) Elimination of subsidy.--Notwithstanding any other 
     provision of law, upon the expiration of the period set forth 
     under paragraph (3), the Administrator may not estimate any 
     risk premium rate for flood insurance for any property 
     subject to paragraph (2) of section 1307(a) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(2)) and not 
     otherwise described in subparagraphs (A) through (E) of such 
     paragraph, if such rate is less than that estimated under 
     paragraph (1) of such section 1307(a).
       (B) Phase-in of chargeable risk premium rate.--Upon the 
     expiration of the period set forth under paragraph (3), the 
     chargeable risk premium rate for flood insurance under the 
     National Flood Insurance Act of 1968 for any property 
     described under subparagraph (A) shall be increased by 20 
     percent each year, until the risk premium rate for such 
     property is equal to the full actuarial risk premium rate for 
     that property.
                                 ______
                                 
  SA 2696. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. MORTGAGE INTEREST DEDUCTION ALLOWED WITH RESPECT TO 
                   BOATS ONLY IF BOAT IS USED AS THE PRINCIPAL 
                   RESIDENCE OF THE TAXPAYER.

       (a) In General.--Subclause (II) of section 163(h)(4)(A)(i) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     ``(other than a boat)'' after ``1 other residence of the 
     taxpayer''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     apply to indebtedness incurred after the date that is 3 
     months after the date of the enactment of this Act.
       (2) Special rule for refinancings.--For purposes of this 
     subsection, indebtedness resulting from the refinancing of 
     indebtedness shall be treated as incurred on the date the 
     refinanced indebtedness was incurred (taking into account the 
     application of this paragraph in the case of multiple 
     refinancings) but only to the extent the indebtedness 
     resulting from such refinancing does not exceed the 
     refinanced indebtedness.
                                 ______
                                 
  SA 2697. Mr. COBURN (for himself and Mr. McCain) submitted an 
amendment intended to be proposed by him to the bill S. 1926, to delay 
the implementation of certain provisions of the Biggert-Waters Flood 
Insurance Reform Act of 2012 and to reform the National Association of 
Registered Agents and Brokers, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of section 330 of subtitle C of title III of the 
     Gramm-Leach-Bliley Act, as added by section 202(a), insert 
     the following:
       ``(c) State Opt-out-rights.--
       ``(1) In general.--Any State, as described in section 
     333(9)(A), may elect not to participate in the Association, 
     and insurance producers doing business in that State shall be 
     subject to all otherwise applicable insurance-related laws, 
     rules, and regulations of that State.
       ``(2) Procedure.--A State, as described in section 
     333(9)(A), that elects not to participate in the Association 
     under paragraph (1) shall do so by enacting legislation 
     indicating such election.
       ``(3) Effective date of opt-out.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the effective date of an election by a State, as described in 
     section 333(9)(A), not to participate in the Association 
     under paragraph (1) is 2 years after the date on which the 
     State enacts legislation under paragraph (2).
       ``(B) Immediately effective opt-out.--An election by a 
     State, as described in section 333(9)(A), not to participate 
     in the Association under paragraph (1) shall take effect upon 
     the enactment of legislation under paragraph (2) if such 
     legislation is enacted not later than 180 days after the date 
     of enactment of this Act.
       ``(4) Exclusion of insurance producers.--No insurance 
     producer, the home State, as described in section 333(9)(A), 
     of which has made an election not to participate in the 
     Association under paragraph (1), may become a member of the 
     Association.
       ``(5) Notification of opt-out.--A State, as described in 
     section 333(9)(A), that elects not to participate in the 
     Association under paragraph (1) shall notify the Board and 
     the primary insurance regulatory authority of each State of 
     such election.
       ``(6) Change in election.--
       ``(A) Opt-in.--A State, as described in section 333(9)(A), 
     that has elected not to participate in the Association under 
     paragraph (1) may elect to participate in the Association by 
     enacting legislation indicating such election.
       ``(B) Effective date of opt-in.--An election by a State, as 
     described in section 333(9)(A), to participate in the 
     Association under subparagraph (A) shall take effect upon the 
     enactment of the legislation indicating such election.
       ``(C) Notification of opt-in.--A State, as described in 
     section 333(9)(A), that has elected to participate in the 
     Association under subparagraph (A) shall notify the Board and 
     the primary insurance regulatory authority of each State of 
     such election.
       In section 334 of subtitle C of title III of the Gramm-
     Leach-Bliley Act, as added by section 202(a), strike 
     paragraph (9) and insert the following:
       ``(9) State.--The term `State'--
       ``(A) means any State, the District of Columbia, any 
     territory of the United States, Puerto Rico, Guam, American 
     Samoa, the Trust Territory of the Pacific Islands, the Virgin 
     Islands, and the Northern Mariana Islands; and
       ``(B) does not include any State (as described in 
     subparagraph (A)) that has made

[[Page 2071]]

     an election not to participate in the Association under 
     section 330(c)(1).
                                 ______
                                 
  SA 2698. Mr. BLUNT submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 1__. HOME IMPROVEMENT FAIRNESS.

       Section 1307(a)(2)(E)(ii) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by 
     striking ``30 percent'' and inserting ``50 percent''.
                                 ______
                                 
  SA 2699. Ms. AYOTTE (for herself, Mr. Graham, and Mr. Wicker) 
submitted an amendment intended to be proposed by her to the bill S. 
1926, to delay the implementation of certain provisions of the Biggert-
Waters Flood Insurance Reform Act of 2012 and to reform the National 
Association of Registered Agents and Brokers, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT 
                   OF 2013.

       (a) Repeals.--
       (1) Adjustment of retirement pay.--Section 403 of the 
     Bipartisan Budget Act of 2013 is repealed as of the date of 
     the enactment of such Act.
       (2) Conforming amendment.--Title X of the Department of 
     Defense Appropriations Act, 2014 (division C of Public Law 
     113-76) is hereby repealed.
       (b) Social Security Number Required to Claim the Refundable 
     Portion of the Child Tax Credit.--
       (1) In general.--Subsection (e) of section 24 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(e) Identification Requirement With Respect to Qualifying 
     Children.--
       ``(1) In general.--Subject to paragraph (2), no credit 
     shall be allowed under this section to a taxpayer with 
     respect to any qualifying child unless the taxpayer includes 
     the name and taxpayer identification number of such 
     qualifying child on the return of tax for the taxable year.
       ``(2) Refundable portion.--Subsection (d)(1) shall not 
     apply to any taxpayer with respect to any qualifying child 
     unless the taxpayer includes the name and social security 
     number of such qualifying child on the return of tax for the 
     taxable year.''.
       (2) Omission treated as mathematical or clerical error.--
     Subparagraph (I) of section 6213(g)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(I) an omission of a correct TIN under section 24(e)(1) 
     (relating to child tax credit) or a correct Social Security 
     number required under section 24(e)(2) (relating to 
     refundable portion of child tax credit), to be included on a 
     return,''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2700. Mr. HELLER (for himself and Mr. Lee) submitted an amendment 
intended to be proposed by him to the bill S. 1926, to delay the 
implementation of certain provisions of the Biggert-Waters Flood 
Insurance Reform Act of 2012 and to reform the National Association of 
Registered Agents and Brokers, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title I, add the following:

     SEC. 1__. AUTHORITY OF STATES TO REGULATE PRIVATE FLOOD 
                   INSURANCE.

       Section 102(b)(7) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(b)(7)) is amended to read as follows:
       ``(7) Private flood insurance defined.--In this subsection, 
     the term `private flood insurance' means an insurance policy 
     that--
       ``(A) provides flood insurance coverage;
       ``(B) is issued by an insurance company that is--
       ``(i) licensed, admitted, or otherwise approved to engage 
     in the business of insurance in the State or jurisdiction in 
     which the insured building is located, by the insurance 
     regulator of that State or jurisdiction; or
       ``(ii) eligible as a nonadmitted insurer to provide 
     insurance in the State or jurisdiction where the property to 
     be insured is located, in accordance with section 524 of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act (15 
     U.S.C. 8204); and
       ``(C) is issued by an insurance company that is not 
     otherwise disapproved as a surplus lines insurer by the 
     insurance regulator of the State or jurisdiction where the 
     property to be insured is located.''.
                                 ______
                                 
  SA 2701. Mr. REID (for Mr. Harkin (for himself, Mr. Roberts, Mr. 
Baucus, and Mr. Hatch)) proposed an amendment to the bill S. 1302, to 
amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to provide for cooperative and small 
employer charity pension plans; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Cooperative and Small Employer Charity Pension Flexibility 
     Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings and declarations of policy.
Sec. 3. Effective date.

TITLE I--AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 
                          AND OTHER PROVISIONS

Sec. 101. Definition of cooperative and small employer charity pension 
              plans.
Sec. 102. Funding rules applicable to cooperative and small employer 
              charity pension plans.
Sec. 103. Elections.
Sec. 104. Transparency.
Sec. 105. Sponsor education and assistance.

         TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

Sec. 201. Definition of cooperative and small employer charity pension 
              plans.
Sec. 202. Funding rules applicable to cooperative and small employer 
              charity pension plans.
Sec. 203. Election not to be treated as a CSEC plan.

     SEC. 2. CONGRESSIONAL FINDINGS AND DECLARATIONS OF POLICY.

       Congress finds as follows:
       (1) Defined benefit pension plans are a cost-effective way 
     for cooperative associations and charities to provide their 
     employees with economic security in retirement.
       (2) Many cooperative associations and charitable 
     organizations are only able to provide their employees with 
     defined benefit pension plans because those organizations are 
     able to pool their resources using the multiple employer plan 
     structure.
       (3) The pension funding rules should encourage cooperative 
     associations and charities to continue to provide their 
     employees with pension benefits.

     SEC. 3. EFFECTIVE DATE.

       Unless otherwise specified in this Act, the provisions of 
     this Act shall apply to years beginning after December 31, 
     2013.

TITLE I--AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 
                          AND OTHER PROVISIONS

     SEC. 101. DEFINITION OF COOPERATIVE AND SMALL EMPLOYER 
                   CHARITY PENSION PLANS.

       Section 210 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1060) is amended by adding at the end the 
     following new subsection:
       ``(f) Cooperative and Small Employer Charity Pension 
     Plans.--
       ``(1) In general.--For purposes of this title, except as 
     provided in this subsection, a CSEC plan is an employee 
     pension benefit plan (other than a multiemployer plan) that 
     is a defined benefit plan--
       ``(A) to which section 104 of the Pension Protection Act of 
     2006 applies, without regard to--
       ``(i) section 104(a)(2) of such Act;
       ``(ii) the amendments to such section 104 by section 202(b) 
     of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010; and
       ``(iii) paragraph (3)(B); or
       ``(B) that, as of June 25, 2010, was maintained by more 
     than one employer and all of the employers were organizations 
     described in section 501(c)(3) of the Internal Revenue Code 
     of 1986.
       ``(2) Aggregation.--All employers that are treated as a 
     single employer under subsection (b) or (c) of section 414 of 
     the Internal Revenue Code of 1986 shall be treated as a 
     single employer for purposes of determining if a plan was 
     maintained by more than one employer under paragraph 
     (1)(B).''.

     SEC. 102. FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL 
                   EMPLOYER CHARITY PENSION PLANS.

       (a) In General.--Part 3 of title I of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1081 et 
     seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 306. MINIMUM FUNDING STANDARDS.

       ``(a) General Rule.--For purposes of section 302, the term 
     `accumulated funding deficiency' for a CSEC plan means the 
     excess of the total charges to the funding standard account 
     for all plan years (beginning with the first plan year to 
     which section 302 applies) over the total credits to such 
     account for such years or, if less, the excess of the total 
     charges to the alternative minimum funding standard account 
     for such plan years over the total credits to such account 
     for such years.
       ``(b) Funding Standard Account.--
       ``(1) Account required.--Each plan to which this section 
     applies shall establish and maintain a funding standard 
     account. Such account shall be credited and charged solely as 
     provided in this section.
       ``(2) Charges to account.--For a plan year, the funding 
     standard account shall be charged with the sum of--

[[Page 2072]]

       ``(A) the normal cost of the plan for the plan year,
       ``(B) the amounts necessary to amortize in equal annual 
     installments (until fully amortized)--
       ``(i) in the case of a plan in existence on January 1, 
     1974, the unfunded past service liability under the plan on 
     the first day of the first plan year to which section 302 
     applies, over a period of 40 plan years,
       ``(ii) in the case of a plan which comes into existence 
     after January 1, 1974, but before the first day of the first 
     plan year beginning after December 31, 2013, the unfunded 
     past service liability under the plan on the first day of the 
     first plan year to which section 302 applies, over a period 
     of 30 plan years,
       ``(iii) separately, with respect to each plan year, the net 
     increase (if any) in unfunded past service liability under 
     the plan arising from plan amendments adopted in such year, 
     over a period of 15 plan years,
       ``(iv) separately, with respect to each plan year, the net 
     experience loss (if any) under the plan, over a period of 5 
     plan years, and
       ``(v) separately, with respect to each plan year, the net 
     loss (if any) resulting from changes in actuarial assumptions 
     used under the plan, over a period of 10 plan years,
       ``(C) the amount necessary to amortize each waived funding 
     deficiency (within the meaning of section 302(c)(3)) for each 
     prior plan year in equal annual installments (until fully 
     amortized) over a period of 5 plan years,
       ``(D) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 5 plan 
     years any amount credited to the funding standard account 
     under paragraph (3)(D), and
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made 
     under the plan but for the provisions of section 
     302(c)(7)(A)(i)(I) (as in effect on the day before the 
     enactment of the Pension Protection Act of 2006).
       ``(3) Credits to account.--For a plan year, the funding 
     standard account shall be credited with the sum of--
       ``(A) the amount considered contributed by the employer to 
     or under the plan for the plan year,
       ``(B) the amount necessary to amortize in equal annual 
     installments (until fully amortized)--
       ``(i) separately, with respect to each plan year, the net 
     decrease (if any) in unfunded past service liability under 
     the plan arising from plan amendments adopted in such year, 
     over a period of 15 plan years,
       ``(ii) separately, with respect to each plan year, the net 
     experience gain (if any) under the plan, over a period of 5 
     plan years, and
       ``(iii) separately, with respect to each plan year, the net 
     gain (if any) resulting from changes in actuarial assumptions 
     used under the plan, over a period of 10 plan years,
       ``(C) the amount of the waived funding deficiency (within 
     the meaning of section 302(c)(3)) for the plan year, and
       ``(D) in the case of a plan year for which the accumulated 
     funding deficiency is determined under the funding standard 
     account if such plan year follows a plan year for which such 
     deficiency was determined under the alternative minimum 
     funding standard, the excess (if any) of any debit balance in 
     the funding standard account (determined without regard to 
     this subparagraph) over any debit balance in the alternative 
     minimum funding standard account.
       ``(4) Combining and offsetting amounts to be amortized.--
     Under regulations prescribed by the Secretary of the 
     Treasury, amounts required to be amortized under paragraph 
     (2) or paragraph (3), as the case may be--
       ``(A) may be combined into one amount under such paragraph 
     to be amortized over a period determined on the basis of the 
     remaining amortization period for all items entering into 
     such combined amount, and
       ``(B) may be offset against amounts required to be 
     amortized under the other such paragraph, with the resulting 
     amount to be amortized over a period determined on the basis 
     of the remaining amortization periods for all items entering 
     into whichever of the two amounts being offset is the 
     greater.
       ``(5) Interest.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the funding standard account (and items therein) shall be 
     charged or credited (as determined under regulations 
     prescribed by the Secretary of the Treasury) with interest at 
     the appropriate rate consistent with the rate or rates of 
     interest used under the plan to determine costs.
       ``(B) Exception.--The interest rate used for purposes of 
     computing the amortization charge described in subsection 
     (b)(2)(C) or for purposes of any arrangement under subsection 
     (d) for any plan year shall be the greater of--
       ``(i) 150 percent of the Federal mid-term rate (as in 
     effect under section 1274 of the Internal Revenue Code of 
     1986 for the 1st month of such plan year), or
       ``(ii) the rate of interest determined under subparagraph 
     (A).
       ``(6) Amortization schedules in effect.--Amortization 
     schedules for amounts described in paragraphs (2) and (3) 
     that are in effect as of the last day of the last plan year 
     beginning before January 1, 2014, by reason of section 104 of 
     the Pension Protection Act of 2006 shall remain in effect 
     pursuant to their terms and this section, except that such 
     amounts shall not be amortized again under this section.
       ``(c) Special Rules.--
       ``(1) Determinations to be made under funding method.--For 
     purposes of this section, normal costs, accrued liability, 
     past service liabilities, and experience gains and losses 
     shall be determined under the funding method used to 
     determine costs under the plan.
       ``(2) Valuation of assets.--
       ``(A) In general.--For purposes of this section, the value 
     of the plan's assets shall be determined on the basis of any 
     reasonable actuarial method of valuation which takes into 
     account fair market value and which is permitted under 
     regulations prescribed by the Secretary of the Treasury.
       ``(B) Dedicated bond portfolio.--The Secretary of the 
     Treasury may by regulations provide that the value of any 
     dedicated bond portfolio of a plan shall be determined by 
     using the interest rate under section 302(b)(5) (as in effect 
     on the day before the enactment of the Pension Protection Act 
     of 2006).
       ``(3) Actuarial assumptions must be reasonable.--For 
     purposes of this section, all costs, liabilities, rates of 
     interest, and other factors under the plan shall be 
     determined on the basis of actuarial assumptions and 
     methods--
       ``(A) each of which is reasonable (taking into account the 
     experience of the plan and reasonable expectations), and
       ``(B) which, in combination, offer the actuary's best 
     estimate of anticipated experience under the plan.
       ``(4) Treatment of certain changes as experience gain or 
     loss.--For purposes of this section, if--
       ``(A) a change in benefits under the Social Security Act or 
     in other retirement benefits created under Federal or State 
     law, or
       ``(B) a change in the definition of the term `wages' under 
     section 3121 of the Internal Revenue Code of 1986 or a change 
     in the amount of such wages taken into account under 
     regulations prescribed for purposes of section 401(a)(5) of 
     such Code,

     results in an increase or decrease in accrued liability under 
     a plan, such increase or decrease shall be treated as an 
     experience loss or gain.
       ``(5) Funding method and plan year.--
       ``(A) Funding methods available.--All funding methods 
     available to CSEC plans under section 302 (as in effect on 
     the day before the enactment of the Pension Protection Act of 
     2006) shall continue to be available under this section.
       ``(B) Changes.--If the funding method for a plan is 
     changed, the new funding method shall become the funding 
     method used to determine costs and liabilities under the plan 
     only if the change is approved by the Secretary of the 
     Treasury. If the plan year for a plan is changed, the new 
     plan year shall become the plan year for the plan only if the 
     change is approved by the Secretary of the Treasury.
       ``(C) Approval required for certain changes in assumptions 
     by certain single-employer plans subject to additional 
     funding requirement.--
       ``(i) In general.--No actuarial assumption (other than the 
     assumptions described in subsection (h)(3)) used to determine 
     the current liability for a plan to which this subparagraph 
     applies may be changed without the approval of the Secretary 
     of the Treasury.
       ``(ii) Plans to which subparagraph applies.--This 
     subparagraph shall apply to a plan only if--

       ``(I) the plan is a CSEC plan,
       ``(II) the aggregate unfunded vested benefits as of the 
     close of the preceding plan year (as determined under section 
     4006(a)(3)(E)(iii)) of such plan and all other plans 
     maintained by the contributing sponsors (as defined in 
     section 4001(a)(13)) and members of such sponsors' controlled 
     groups (as defined in section 4001(a)(14)) which are covered 
     by title IV (disregarding plans with no unfunded vested 
     benefits) exceed $50,000,000, and
       ``(III) the change in assumptions (determined after taking 
     into account any changes in interest rate and mortality 
     table) results in a decrease in the funding shortfall of the 
     plan for the current plan year that exceeds $50,000,000, or 
     that exceeds $5,000,000 and that is 5 percent or more of the 
     current liability of the plan before such change.

       ``(6) Full funding.--If, as of the close of a plan year, a 
     plan would (without regard to this paragraph) have an 
     accumulated funding deficiency (determined without regard to 
     the alternative minimum funding standard account permitted 
     under subsection (e)) in excess of the full funding 
     limitation--
       ``(A) the funding standard account shall be credited with 
     the amount of such excess, and
       ``(B) all amounts described in paragraphs (2)(B), (C), and 
     (D) and (3)(B) of subsection (b) which are required to be 
     amortized shall be considered fully amortized for purposes of 
     such paragraphs.
       ``(7) Full-funding limitation.--For purposes of paragraph 
     (6), the term `full-funding limitation' means the excess (if 
     any) of--
       ``(A) the accrued liability (including normal cost) under 
     the plan (determined under the entry age normal funding 
     method if such

[[Page 2073]]

     accrued liability cannot be directly calculated under the 
     funding method used for the plan), over
       ``(B) the lesser of--
       ``(i) the fair market value of the plan's assets, or
       ``(ii) the value of such assets determined under paragraph 
     (2).
       ``(C) Minimum amount.--
       ``(i) In general.--In no event shall the full-funding 
     limitation determined under subparagraph (A) be less than the 
     excess (if any) of--

       ``(I) 90 percent of the current liability (determined 
     without regard to paragraph (4) of subsection (h)) of the 
     plan (including the expected increase in such current 
     liability due to benefits accruing during the plan year), 
     over
       ``(II) the value of the plan's assets determined under 
     paragraph (2).

       ``(ii) Assets.--For purposes of clause (i), assets shall 
     not be reduced by any credit balance in the funding standard 
     account.
       ``(8) Annual valuation.--
       ``(A) In general.--For purposes of this section, a 
     determination of experience gains and losses and a valuation 
     of the plan's liability shall be made not less frequently 
     than once every year, except that such determination shall be 
     made more frequently to the extent required in particular 
     cases under regulations prescribed by the Secretary of the 
     Treasury.
       ``(B) Valuation date.--
       ``(i) Current year.--Except as provided in clause (ii), the 
     valuation referred to in subparagraph (A) shall be made as of 
     a date within the plan year to which the valuation refers or 
     within one month prior to the beginning of such year.
       ``(ii) Use of prior year valuation.--The valuation referred 
     to in subparagraph (A) may be made as of a date within the 
     plan year prior to the year to which the valuation refers if, 
     as of such date, the value of the assets of the plan are not 
     less than 100 percent of the plan's current liability.
       ``(iii) Adjustments.--Information under clause (ii) shall, 
     in accordance with regulations, be actuarially adjusted to 
     reflect significant differences in participants.
       ``(iv) Limitation.--A change in funding method to use a 
     prior year valuation, as provided in clause (ii), may not be 
     made unless as of the valuation date within the prior plan 
     year, the value of the assets of the plan are not less than 
     125 percent of the plan's current liability.
       ``(9) Time when certain contributions deemed made.--For 
     purposes of this section, any contributions for a plan year 
     made by an employer during the period--
       ``(A) beginning on the day after the last day of such plan 
     year, and
       ``(B) ending on the day which is 8\1/2\ months after the 
     close of the plan year,
     shall be deemed to have been made on such last day.
       ``(10) Anticipation of benefit increases effective in the 
     future.--In determining projected benefits, the funding 
     method of a collectively bargained CSEC plan described in 
     section 413(a) of the Internal Revenue Code of 1986 shall 
     anticipate benefit increases scheduled to take effect during 
     the term of the collective bargaining agreement applicable to 
     the plan.
       ``(d) Extension of Amortization Periods.--The period of 
     years required to amortize any unfunded liability (described 
     in any clause of subsection (b)(2)(B)) of any plan may be 
     extended by the Secretary of the Treasury for a period of 
     time (not in excess of 10 years) if such Secretary determines 
     that such extension would carry out the purposes of this Act 
     and provide adequate protection for participants under the 
     plan and their beneficiaries, and if such Secretary 
     determines that the failure to permit such extension would 
     result in--
       ``(1) a substantial risk to the voluntary continuation of 
     the plan, or
       ``(2) a substantial curtailment of pension benefit levels 
     or employee compensation.
       ``(e) Alternative Minimum Funding Standard.--
       ``(1) In general.--A CSEC plan which uses a funding method 
     that requires contributions in all years not less than those 
     required under the entry age normal funding method may 
     maintain an alternative minimum funding standard account for 
     any plan year. Such account shall be credited and charged 
     solely as provided in this subsection.
       ``(2) Charges and credits to account.--For a plan year the 
     alternative minimum funding standard account shall be--
       ``(A) charged with the sum of--
       ``(i) the lesser of normal cost under the funding method 
     used under the plan or normal cost determined under the unit 
     credit method,
       ``(ii) the excess, if any, of the present value of accrued 
     benefits under the plan over the fair market value of the 
     assets, and
       ``(iii) an amount equal to the excess (if any) of credits 
     to the alternative minimum standard account for all prior 
     plan years over charges to such account for all such years, 
     and
       ``(B) credited with the amount considered contributed by 
     the employer to or under the plan for the plan year.
       ``(3) Interest.--The alternative minimum funding standard 
     account (and items therein) shall be charged or credited with 
     interest in the manner provided under subsection (b)(5) with 
     respect to the funding standard account.
       ``(f) Quarterly Contributions Required.--
       ``(1) In general.--If a CSEC plan which has a funded 
     current liability percentage for the preceding plan year of 
     less than 100 percent fails to pay the full amount of a 
     required installment for the plan year, then the rate of 
     interest charged to the funding standard account under 
     subsection (b)(5) with respect to the amount of the 
     underpayment for the period of the underpayment shall be 
     equal to the greater of--
       ``(A) 175 percent of the Federal mid-term rate (as in 
     effect under section 1274 of the Internal Revenue Code of 
     1986 for the 1st month of such plan year), or
       ``(B) the rate of interest used under the plan in 
     determining costs.
       ``(2) Amount of underpayment, period of underpayment.--For 
     purposes of paragraph (1)--
       ``(A) Amount.--The amount of the underpayment shall be the 
     excess of--
       ``(i) the required installment, over
       ``(ii) the amount (if any) of the installment contributed 
     to or under the plan on or before the due date for the 
     installment.
       ``(B) Period of underpayment.--The period for which 
     interest is charged under this subsection with regard to any 
     portion of the underpayment shall run from the due date for 
     the installment to the date on which such portion is 
     contributed to or under the plan (determined without regard 
     to subsection (c)(9)).
       ``(C) Order of crediting contributions.--For purposes of 
     subparagraph (A)(ii), contributions shall be credited against 
     unpaid required installments in the order in which such 
     installments are required to be paid.
       ``(3) Number of required installments; due dates.--For 
     purposes of this subsection--
       ``(A) Payable in 4 installments.--There shall be 4 required 
     installments for each plan year.
       ``(B) Time for payment of installments.--


 
 ``In the case of the following required
              installments:                       The due date is:
 
1st......................................  April 15
2nd......................................  July 15
3rd......................................  October 15
4th......................................  January 15 of the following
                                            year.
 

       ``(4) Amount of required installment.--For purposes of this 
     subsection--
       ``(A) In general.--The amount of any required installment 
     shall be 25 percent of the required annual payment.
       ``(B) Required annual payment.--For purposes of 
     subparagraph (A), the term `required annual payment' means 
     the lesser of--
       ``(i) 90 percent of the amount required to be contributed 
     to or under the plan by the employer for the plan year under 
     section 302 (without regard to any waiver under subsection 
     (c) thereof), or
       ``(ii) 100 percent of the amount so required for the 
     preceding plan year.
     Clause (ii) shall not apply if the preceding plan year was 
     not a year of 12 months.
       ``(5) Liquidity requirement.--
       ``(A) In general.--A plan to which this paragraph applies 
     shall be treated as failing to pay the full amount of any 
     required installment to the extent that the value of the 
     liquid assets paid in such installment is less than the 
     liquidity shortfall (whether or not such liquidity shortfall 
     exceeds the amount of such installment required to be paid 
     but for this paragraph).
       ``(B) Plans to which paragraph applies.--This paragraph 
     shall apply to a CSEC plan other than a plan described in 
     section 302(d)(6)(A) (as in effect on the day before the 
     enactment of the Pension Protection Act of 2006) which--
       ``(i) is required to pay installments under this subsection 
     for a plan year, and
       ``(ii) has a liquidity shortfall for any quarter during 
     such plan year.
       ``(C) Period of underpayment.--For purposes of paragraph 
     (1), any portion of an installment that is treated as not 
     paid under subparagraph (A) shall continue to be treated as 
     unpaid until the close of the quarter in which the due date 
     for such installment occurs.
       ``(D) Limitation on increase.--If the amount of any 
     required installment is increased by reason of subparagraph 
     (A), in no event shall such increase exceed the amount which, 
     when added to prior installments for the plan year, is 
     necessary to increase the funded current liability percentage 
     (taking into account the expected increase in current 
     liability due to benefits accruing during the plan year) to 
     100 percent.
       ``(E) Definitions.--For purposes of this paragraph--
       ``(i) Liquidity shortfall.--The term `liquidity shortfall' 
     means, with respect to any required installment, an amount 
     equal to the excess (as of the last day of the quarter for 
     which such installment is made) of the base amount with 
     respect to such quarter over the value (as of such last day) 
     of the plan's liquid assets.
       ``(ii) Base amount.--

[[Page 2074]]

       ``(I) In general.--The term `base amount' means, with 
     respect to any quarter, an amount equal to 3 times the sum of 
     the adjusted disbursements from the plan for the 12 months 
     ending on the last day of such quarter.
       ``(II) Special rule.--If the amount determined under 
     subclause (I) exceeds an amount equal to 2 times the sum of 
     the adjusted disbursements from the plan for the 36 months 
     ending on the last day of the quarter and an enrolled actuary 
     certifies to the satisfaction of the Secretary of the 
     Treasury that such excess is the result of nonrecurring 
     circumstances, the base amount with respect to such quarter 
     shall be determined without regard to amounts related to 
     those nonrecurring circumstances.

       ``(iii) Disbursements from the plan.--The term 
     `disbursements from the plan' means all disbursements from 
     the trust, including purchases of annuities, payments of 
     single sums and other benefits, and administrative expenses.
       ``(iv) Adjusted disbursements.--The term `adjusted 
     disbursements' means disbursements from the plan reduced by 
     the product of--

       ``(I) the plan's funded current liability percentage for 
     the plan year, and
       ``(II) the sum of the purchases of annuities, payments of 
     single sums, and such other disbursements as the Secretary of 
     the Treasury shall provide in regulations.

       ``(v) Liquid assets.--The term `liquid assets' means cash, 
     marketable securities and such other assets as specified by 
     the Secretary of the Treasury in regulations.
       ``(vi) Quarter.--The term `quarter' means, with respect to 
     any required installment, the 3-month period preceding the 
     month in which the due date for such installment occurs.
       ``(F) Regulations.--The Secretary of the Treasury may 
     prescribe such regulations as are necessary to carry out this 
     paragraph.
       ``(6) Fiscal years and short years.--
       ``(A) Fiscal years.--In applying this subsection to a plan 
     year beginning on any date other than January 1, there shall 
     be substituted for the months specified in this subsection, 
     the months which correspond thereto.
       ``(B) Short plan year.--This subsection shall be applied to 
     plan years of less than 12 months in accordance with 
     regulations prescribed by the Secretary of the Treasury.
       ``(g) Imposition of Lien Where Failure To Make Required 
     Contributions.--
       ``(1) In general.--In the case of a plan to which this 
     section applies, if--
       ``(A) any person fails to make a required installment under 
     subsection (f) or any other payment required under this 
     section before the due date for such installment or other 
     payment, and
       ``(B) the unpaid balance of such installment or other 
     payment (including interest), when added to the aggregate 
     unpaid balance of all preceding such installments or other 
     payments for which payment was not made before the due date 
     (including interest), exceeds $1,000,000,
     then there shall be a lien in favor of the plan in the amount 
     determined under paragraph (3) upon all property and rights 
     to property, whether real or personal, belonging to such 
     person and any other person who is a member of the same 
     controlled group of which such person is a member.
       ``(2) Plans to which subsection applies.--This subsection 
     shall apply to a CSEC plan for any plan year for which the 
     funded current liability percentage of such plan is less than 
     100 percent. This subsection shall not apply to any plan to 
     which section 4021 does not apply (as such section is in 
     effect on the date of the enactment of the Retirement 
     Protection Act of 1994).
       ``(3) Amount of lien.--For purposes of paragraph (1), the 
     amount of the lien shall be equal to the aggregate unpaid 
     balance of required installments and other payments required 
     under this section (including interest)--
       ``(A) for plan years beginning after 1987, and
       ``(B) for which payment has not been made before the due 
     date.
       ``(4) Notice of failure; lien.--
       ``(A) Notice of failure.--A person committing a failure 
     described in paragraph (1) shall notify the Pension Benefit 
     Guaranty Corporation of such failure within 10 days of the 
     due date for the required installment or other payment.
       ``(B) Period of lien.--The lien imposed by paragraph (1) 
     shall arise on the due date for the required installment or 
     other payment and shall continue until the last day of the 
     first plan year in which the plan ceases to be described in 
     paragraph (1)(B). Such lien shall continue to run without 
     regard to whether such plan continues to be described in 
     paragraph (2) during the period referred to in the preceding 
     sentence.
       ``(C) Certain rules to apply.--Any amount with respect to 
     which a lien is imposed under paragraph (1) shall be treated 
     as taxes due and owing the United States and rules similar to 
     the rules of subsections (c), (d), and (e) of section 4068 
     shall apply with respect to a lien imposed by subsection (a) 
     and the amount with respect to such lien.
       ``(5) Enforcement.--Any lien created under paragraph (1) 
     may be perfected and enforced only by the Pension Benefit 
     Guaranty Corporation, or at the direction of the Pension 
     Benefit Guaranty Corporation, by any contributing employer 
     (or any member of the controlled group of the contributing 
     employer).
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Due date; required installment.--The terms `due date' 
     and `required installment' have the meanings given such terms 
     by subsection (f), except that in the case of a payment other 
     than a required installment, the due date shall be the date 
     such payment is required to be made under this section.
       ``(B) Controlled group.--The term `controlled group' means 
     any group treated as a single employer under subsections (b), 
     (c), (m), and (o) of section 414 of the Internal Revenue Code 
     of 1986.
       ``(h) Current Liability.--For purposes of this section--
       ``(1) In general.--The term `current liability' means all 
     liabilities to employees and their beneficiaries under the 
     plan.
       ``(2) Treatment of unpredictable contingent event 
     benefits.--
       ``(A) In general.--For purposes of paragraph (1), any 
     unpredictable contingent event benefit shall not be taken 
     into account until the event on which the benefit is 
     contingent occurs.
       ``(B) Unpredictable contingent event benefit.--The term 
     `unpredictable contingent event benefit' means any benefit 
     contingent on an event other than--
       ``(i) age, service, compensation, death, or disability, or
       ``(ii) an event which is reasonably and reliably 
     predictable (as determined by the Secretary of the Treasury).
       ``(3) Interest rate and mortality assumptions used.--
       ``(A) Interest rate.--The rate of interest used to 
     determine current liability under this section shall be the 
     third segment rate determined under section 303(h)(2)(C).
       ``(B) Mortality tables.--
       ``(i) Secretarial authority.--The Secretary of the Treasury 
     may by regulation prescribe mortality tables to be used in 
     determining current liability under this subsection. Such 
     tables shall be based upon the actual experience of pension 
     plans and projected trends in such experience. In prescribing 
     such tables, the Secretary of the Treasury shall take into 
     account results of available independent studies of mortality 
     of individuals covered by pension plans.
       ``(ii) Periodic review.--The Secretary of the Treasury 
     shall periodically (at least every 5 years) review any tables 
     in effect under this subsection and shall, to the extent the 
     Secretary of the Treasury determines necessary, by regulation 
     update the tables to reflect the actual experience of pension 
     plans and projected trends in such experience.
       ``(C) Separate mortality tables for the disabled.--
     Notwithstanding subparagraph (B)--
       ``(i) In general.--In the case of plan years beginning 
     after December 31, 1995, the Secretary of the Treasury shall 
     establish mortality tables which may be used (in lieu of the 
     tables under subparagraph (B)) to determine current liability 
     under this subsection for individuals who are entitled to 
     benefits under the plan on account of disability. The 
     Secretary of the Treasury shall establish separate tables for 
     individuals whose disabilities occur in plan years beginning 
     before January 1, 1995, and for individuals whose 
     disabilities occur in plan years beginning on or after such 
     date.
       ``(ii) Special rule for disabilities occurring after 
     1994.--In the case of disabilities occurring in plan years 
     beginning after December 31, 1994, the tables under clause 
     (i) shall apply only with respect to individuals described in 
     such subclause who are disabled within the meaning of title 
     II of the Social Security Act and the regulations thereunder.
       ``(4) Certain service disregarded.--
       ``(A) In general.--In the case of a participant to whom 
     this paragraph applies, only the applicable percentage of the 
     years of service before such individual became a participant 
     shall be taken into account in computing the current 
     liability of the plan.
       ``(B) Applicable percentage.--For purposes of this 
     subparagraph, the applicable percentage shall be determined 
     as follows:


 
                                             The applicable  percentage
  ``If the years of  participation are:                 is:
 
1........................................  20
2........................................  40
3........................................  60
4........................................  80
5 or more................................  100.
 

       ``(C) Participants to whom paragraph applies.--This 
     subparagraph shall apply to any participant who, at the time 
     of becoming a participant--
       ``(i) has not accrued any other benefit under any defined 
     benefit plan (whether or not terminated) maintained by the 
     employer or a member of the same controlled group of which 
     the employer is a member,
       ``(ii) who first becomes a participant under the plan in a 
     plan year beginning after December 31, 1987, and

[[Page 2075]]

       ``(iii) has years of service greater than the minimum years 
     of service necessary for eligibility to participate in the 
     plan.
       ``(D) Election.--An employer may elect not to have this 
     subparagraph apply. Such an election, once made, may be 
     revoked only with the consent of the Secretary of the 
     Treasury.
       ``(i) Funded Current Liability Percentage.--For purposes of 
     this section, the term `funded current liability percentage' 
     means, with respect to any plan year, the percentage which--
       ``(1) the value of the plan's assets determined under 
     subsection (c)(2), is of
       ``(2) the current liability under the plan.
       ``(j) Funding Restoration Status.--Notwithstanding any 
     other provisions of this section--
       ``(1) Normal cost payment.--
       ``(A) In general.--In the case of a CSEC plan that is in 
     funding restoration status for a plan year, for purposes of 
     section 302, the term `accumulated funding deficiency' means, 
     for such plan year, the greater of--
       ``(i) the amount described in subsection (a), or
       ``(ii) the excess of the normal cost of the plan for the 
     plan year over the amount actually contributed to or under 
     the plan for the plan year.
       ``(B) Normal cost.--In the case of a CSEC plan that uses a 
     spread gain funding method, for purposes of this subsection, 
     the term `normal cost' means normal cost as determined under 
     the entry age normal funding method.
       ``(2) Plan amendments.--In the case of a CSEC plan that is 
     in funding restoration status for a plan year, no amendment 
     to such plan may take effect during such plan year if such 
     amendment has the effect of increasing liabilities of the 
     plan by means of increases in benefits, establishment of new 
     benefits, changing the rate of benefit accrual, or changing 
     the rate at which benefits become nonforfeitable. This 
     paragraph shall not apply to any plan amendment that is 
     required to comply with any applicable law. This paragraph 
     shall cease to apply with respect to any plan year, effective 
     as of the first day of the plan year (or if later, the 
     effective date of the amendment) upon payment by the plan 
     sponsor of a contribution to the plan (in addition to any 
     contribution required under this section without regard to 
     this paragraph) in an amount equal to the increase in the 
     funding liability of the plan attributable to the plan 
     amendment.
       ``(3) Funding restoration plan.--The sponsor of a CSEC plan 
     shall establish a written funding restoration plan within 180 
     days of the receipt by the plan sponsor of a certification 
     from the plan actuary that the plan is in funding restoration 
     status for a plan year. Such funding restoration plan shall 
     consist of actions that are calculated, based on reasonably 
     anticipated experience and reasonable actuarial assumptions, 
     to increase the plan's funded percentage to 100 percent over 
     a period that is not longer than the greater of 7 years or 
     the shortest amount of time practicable. Such funding 
     restoration plan shall take into account contributions 
     required under this section (without regard to this 
     paragraph). If a plan remains in funding restoration status 
     for 2 or more years, such funding restoration plan shall be 
     updated each year after the 1st such year within 180 days of 
     receipt by the plan sponsor of a certification from the plan 
     actuary that the plan remains in funding restoration status 
     for the plan year.
       ``(4) Annual certification by plan actuary.--Not later than 
     the 90th day of each plan year of a CSEC plan, the plan 
     actuary shall certify to the plan sponsor whether or not the 
     plan is in funding restoration status for the plan year, 
     based on the plan's funded percentage as of the beginning of 
     the plan year. For this purpose, the actuary may conclusively 
     rely on an estimate of--
       ``(A) the plan's funding liability, based on the funding 
     liability of the plan for the preceding plan year and on 
     reasonable actuarial estimates, assumptions, and methods, and
       ``(B) the amount of any contributions reasonably 
     anticipated to be made for the preceding plan year.
     Contributions described in subparagraph (B) shall be taken 
     into account in determining the plan's funded percentage as 
     of the beginning of the plan year.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) Funding restoration status.--A CSEC plan shall be 
     treated as in funding restoration status for a plan year if 
     the plan's funded percentage as of the beginning of such plan 
     year is less than 80 percent.
       ``(B) Funded percentage.--The term `funded percentage' 
     means the ratio (expressed as a percentage) which--
       ``(i) the value of plan assets (as determined under 
     subsection (c)(2)), bears to
       ``(ii) the plan's funding liability.
       ``(C) Funding liability.--The term `funding liability' for 
     a plan year means the present value of all benefits accrued 
     or earned under the plan as of the beginning of the plan 
     year, based on the assumptions used by the plan pursuant to 
     this section, including the interest rate described in 
     subsection (b)(5)(A) (without regard to subsection 
     (b)(5)(B)).
       ``(D) Spread gain funding method.--The term `spread gain 
     funding method' has the meaning given such term under rules 
     and forms issued by the Secretary of the Treasury.''.
       (b) Separate Rules for Csec Plans.--
       (1) In general.--Paragraph (2) of section 302(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1082(a)) is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by inserting at 
     the end thereof the following new subparagraph:
       ``(D) in the case of a CSEC plan, the employers make 
     contributions to or under the plan for any plan year which, 
     in the aggregate, are sufficient to ensure that the plan does 
     not have an accumulated funding deficiency under section 306 
     as of the end of the plan year.''.
       (2) Conforming amendments.--Section 302 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082) is 
     amended--
       (A) by striking ``multiemployer plan'' the first place it 
     appears in clause (i) of subsection (c)(1)(A) and the last 
     place it appears in paragraph (2) of subsection (d), and 
     inserting ``multiemployer plan or a CSEC plan'',
       (B) by striking ``303(j)'' in paragraph (1) of subsection 
     (b) and inserting ``303(j) or under section 306(f)'',
       (C)(i) by striking ``and'' at the end of clause (i) of 
     subsection (c)(1)(B),
       (ii) by striking the period at the end of clause (ii) of 
     subsection (c)(1)(B), and inserting ``, and'', and
       (iii) by inserting the following new clause after clause 
     (ii) of subsection (c)(1)(B):
       ``(iii) in the case of a CSEC plan, the funding standard 
     account shall be credited under section 306(b)(3)(C) with the 
     amount of the waived funding deficiency and such amount shall 
     be amortized as required under section 306(b)(2)(C).'',
       (D) by striking ``under paragraph (1)'' in clause (i) of 
     subsection (c)(4)(A) and inserting ``under paragraph (1) or 
     for granting an extension under section 306(d)'',
       (E) by striking ``waiver under this subsection'' in 
     subparagraph (B) of subsection (c)(4) and inserting ``waiver 
     under this subsection or an extension under 306(d)'',
       (F) by striking ``waiver or modification'' in subclause (I) 
     of subsection (c)(4)(B)(i) and inserting ``waiver, 
     modification, or extension'',
       (G) by striking ``waivers'' in the heading of subsection 
     (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and 
     inserting ``waivers or extensions'',
       (H) by striking ``section 304(d)'' in subparagraph (A) of 
     subsection (c)(7) and in paragraph (2) of subsection (d) and 
     inserting ``section 304(d) or section 306(d)'',
       (I) by striking ``and'' at the end of subclause (I) of 
     subsection (c)(4)(C)(i) and adding ``or the accumulated 
     funding deficiency under section 306, whichever is 
     applicable,'',
       (J) by striking ``303(e)(2),'' in subclause (II) of 
     subsection (c)(4)(C)(i) and inserting ``303(e)(2) or 
     306(b)(2)(C), whichever is applicable, and'',
       (K) by adding immediately after subclause (II) of 
     subsection (c)(4)(C)(i) the following new subclause:

       ``(III) the total amounts not paid by reason of an 
     extension in effect under section 306(d),'',

       (L) by striking ``for waivers of'' in clause (ii) of 
     subsection (c)(4)(C) and inserting ``for waivers or 
     extensions with respect to'', and
       (M) by striking ``single-employer plan'' in subparagraph 
     (A) of subsection (a)(2) and in clause (i) of subsection 
     (c)(1)(B) and inserting ``single-employer plan (other than a 
     CSEC plan)''.
       (3) Benefit restrictions.--Subsection (g) of section 206 of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1056) is amended by adding at the end thereof the 
     following new paragraph:
       ``(12) CSEC plans.--This subsection shall not apply to a 
     CSEC plan (as defined in section 210(f)).''.
       (4) Benefit increases.--Paragraph (3) of section 204(i) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1054(i)) is amended by striking ``multiemployer 
     plans'' and inserting ``multiemployer plans or CSEC plans''.
       (5) Section 103.--Subparagraph (B) of section 103(d)(8) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1023(d)(8)) is amended by striking ``303(h) and 
     304(c)(3)'' and inserting ``303(h), 304(c)(3), and 
     306(c)(3)''.
       (6) Section 502.--Subsection (c) of section 502 of the 
     Employee Retirement Income Security Act of 1974 is amended--
       (A) by redesignating the last paragraph as paragraph (11), 
     and
       (B) by adding at the end the following new paragraph:
       ``(12) The Secretary may assess a civil penalty against any 
     sponsor of a CSEC plan of up to $100 a day from the date of 
     the plan sponsor's failure to comply with the requirements of 
     section 306(j)(3) to establish or update a funding 
     restoration plan.''.
       (7) Section 4003.--Subparagraph (B) of section 4003(e)(1) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1303(e)(1)) is amended by striking ``303(k)(1)(A) and 
     (B) of this Act or section 430(k)(1)(A) and (B) of the 
     Internal Revenue Code of 1986'' and inserting ``303(k)(1)(A) 
     and (B) or 306(g)(1)(A) and (B) of this Act or section 
     430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of the Internal 
     Revenue Code of 1986''.

[[Page 2076]]

       (8) Section 4010.--Paragraph (2) of section 4010(b) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1310(b)) is amended by striking ``303(k)(1)(A) and (B) of 
     this Act or section 430(k)(1)(A) and (B) of the Internal 
     Revenue Code of 1986'' and inserting ``303(k)(1)(A) and (B) 
     or 306(g)(1)(A) and (B) of this Act or section 430(k)(1)(A) 
     and (B) or 433(g)(1)(A) and (B) of the Internal Revenue Code 
     of 1986''.
       (9) Section 4071.--Section 4071 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1371) is amended by 
     striking ``section 303(k)(4)'' and inserting ``section 
     303(k)(4) or 306(g)(4)''.

     SEC. 103. ELECTIONS.

       (a) Election Not To Be Treated as a CSEC Plan.--Subsection 
     (f) of section 210 of the Employee Retirement Income Security 
     Act of 1974, as added by section 101, is amended by adding at 
     the end the following new paragraph:
       ``(3) Election.--
       ``(A) In general.--If a plan falls within the definition of 
     a CSEC plan under this subsection (without regard to this 
     paragraph), such plan shall be a CSEC plan unless the plan 
     sponsor elects not later than the close of the first plan 
     year of the plan beginning after December 31, 2013, not to be 
     treated as a CSEC plan. An election under the preceding 
     sentence shall take effect for such plan year and, once made, 
     may be revoked only with the consent of the Secretary of the 
     Treasury.
       ``(B) Special rule.--If a plan described in subparagraph 
     (A) is treated as a CSEC plan, section 104 of the Pension 
     Protection Act of 2006, as amended by the Preservation of 
     Access to Care for Medicare Beneficiaries and Pension Relief 
     Act of 2010, shall cease to apply to such plan as of the 
     first date as of which such plan is treated as a CSEC 
     plan.''.
       (b) Election To Cease To Be Treated as an Eligible Charity 
     Plan.--Subsection (d) of section 104 of the Pension 
     Protection Act of 2006, as added by section 202 of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010, is amended--
       (1) by striking ``For purposes of'' and inserting ``(1) In 
     general.--For purposes of'', and
       (2) by adding at the end the following:
       ``(2) Election not to be an eligible charity plan.--A plan 
     sponsor may elect for a plan to cease to be treated as an 
     eligible charity plan for plan years beginning after December 
     31, 2013. Such election shall be made at such time and in 
     such form and manner as shall be prescribed by the Secretary 
     of the Treasury. Any such election may be revoked only with 
     the consent of the Secretary of the Treasury.
       ``(3) Election to use funding options available to other 
     plan sponsors.--
       ``(A) A plan sponsor that makes the election described in 
     paragraph (2) may elect for a plan to apply the rules 
     described in subparagraphs (B), (C), and (D) for plan years 
     beginning after December 31, 2013. Such election shall be 
     made at such time and in such form and manner as shall be 
     prescribed by the Secretary of the Treasury. Any such 
     election may be revoked only with the consent of the 
     Secretary of the Treasury.
       ``(B) Under the rules described in this subparagraph, for 
     the first plan year beginning after December 31, 2013, a plan 
     has--
       ``(i) an 11-year shortfall amortization base,
       ``(ii) a 12-year shortfall amortization base, and
       ``(iii) a 7-year shortfall amortization base.
       ``(C) Under the rules described in this subparagraph, 
     section 303(c)(2)(A) and (B) of the Employee Retirement 
     Income Security Act of 1974, and section 430(c)(2)(A) and (B) 
     of the Internal Revenue Code of 1986 shall be applied by--
       ``(i) in the case of an 11-year shortfall amortization 
     base, substituting `11-plan-year period' for `7-plan-year 
     period' wherever such phrase appears, and
       ``(ii) in the case of a 12-year shortfall amortization 
     base, substituting `12-plan-year period' for `7-plan-year 
     period' wherever such phrase appears.
       ``(D) Under the rules described in this subparagraph, 
     section 303(c)(7) of the Employee Retirement Income Security 
     Act of 1974 and section 430(c)(7) of the Internal Revenue 
     Code of 1986 shall apply to a plan for which an election has 
     been made under subparagraph (A). Such provisions shall apply 
     in the following manner:
       ``(i) The first plan year beginning after December 31, 
     2013, shall be treated as an election year, and no other plan 
     years shall be so treated.
       ``(ii) All references in section 303(c)(7) of such Act and 
     section 430(c)(7) of such Code to `February 28, 2010' or 
     `March 1, 2010' shall be treated as references to `February 
     28, 2013' or `March 1, 2013', respectively.
       ``(E) For purposes of this paragraph, the 11-year 
     amortization base is an amount, determined for the first plan 
     year beginning after December 31, 2013, equal to the 
     unamortized principal amount of the shortfall amortization 
     base (as defined in section 303(c)(3) of the Employee 
     Retirement Income Security Act of 1974 and section 430(c)(3) 
     of the Internal Revenue Code of 1986) that would have applied 
     to the plan for the first plan beginning after December 31, 
     2009, if--
       ``(i) the plan had never been an eligible charity plan,
       ``(ii) the plan sponsor had made the election described in 
     section 303(c)(2)(D)(i) of the Employee Retirement Income 
     Security Act of 1974 and in section 430(c)(2)(D)(i) of the 
     Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) 
     of such Act and section 430(c)(2)(D)(iii) of such Code apply 
     with respect to the shortfall amortization base for the first 
     plan year beginning after December 31, 2009, and
       ``(iii) no event had occurred under paragraph (6) or (7) of 
     section 303(c) of such Act or paragraph (6) or (7) of section 
     430(c) of such Code that, as of the first day of the first 
     plan year beginning after December 31, 2013, would have 
     modified the shortfall amortization base or the shortfall 
     amortization installments with respect to the first plan year 
     beginning after December 31, 2009.
       ``(F) For purposes of this paragraph, the 12-year 
     amortization base is an amount, determined for the first plan 
     year beginning after December 31, 2013, equal to the 
     unamortized principal amount of the shortfall amortization 
     base (as defined in section 303(c)(3) of the Employee 
     Retirement Income Security Act of 1974 and section 430(c)(3) 
     of the Internal Revenue Code of 1986) that would have applied 
     to the plan for the first plan beginning after December 31, 
     2010, if--
       ``(i) the plan had never been an eligible charity plan,
       ``(ii) the plan sponsor had made the election described in 
     section 303(c)(2)(D)(i) of the Employee Retirement Income 
     Security Act of 1974 and in section 430(c)(2)(D)(i) of the 
     Internal Revenue Code of 1986 to have section 303(c)(2)(D)(i) 
     of such Act and section 430(c)(2)(D)(iii) of such Code apply 
     with respect to the shortfall amortization base for the first 
     plan year beginning after December 31, 2010, and
       ``(iii) no event had occurred under paragraph (6) or (7) of 
     section 303(c) of such Act or paragraph (6) or (7) of section 
     430(c) of such Code that, as of the first day of the first 
     plan year beginning after December 31, 2013, would have 
     modified the shortfall amortization base or the shortfall 
     amortization installments with respect to the first plan year 
     beginning after December 31, 2010.
       ``(G) For purposes of this paragraph, the 7-year shortfall 
     amortization base is an amount, determined for the first plan 
     year beginning after December 31, 2013, equal to--
       ``(i) the shortfall amortization base for the first plan 
     year beginning after December 31, 2013, without regard to 
     this paragraph, minus
       ``(ii) the sum of the 11-year shortfall amortization base 
     and the 12-year shortfall amortization base.
       ``(4) Retroactive election.--Not later than December 31, 
     2014, a plan sponsor may make a one-time, irrevocable, 
     retroactive election to not be treated as an eligible charity 
     plan. Such election shall be effective for plan years 
     beginning after December 31, 2007, and shall be made by 
     providing reasonable notice to the Secretary of the 
     Treasury.''.
       (c) Deemed Election.--For purposes of the Internal Revenue 
     Code of 1986, sections 4(b)(2) and 4021(b)(3) of the Employee 
     Retirement Income Security Act of 1974, and all other 
     purposes, a plan shall be deemed to have made an irrevocable 
     election under section 410(d) of the Internal Revenue Code of 
     1986 if--
       (1) the plan was established before January 1, 2014;
       (2) the plan falls within the definition of a CSEC plan;
       (3) the plan sponsor does not make an election under 
     section 210(f)(3)(A) of the Employee Retirement Income 
     Security Act of 1974 and section 414(y)(3)(A) of the Internal 
     Revenue Code of 1986, as added by this Act; and
       (4) the plan, plan sponsor, administrator, or fiduciary 
     remits one or more premium payments for the plan to the 
     Pension Benefit Guaranty Corporation for a plan year 
     beginning after December 31, 2013.
       (d) Effective Date.--The amendments made by this section 
     shall apply as of the date of enactment of this Act.

     SEC. 104. TRANSPARENCY.

       (a) Notice to Participants.--
       (1) In general.--Paragraph (2) of section 101(f) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1021(f)) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Effect of csec plan rules on plan funding.--In the 
     case of a CSEC plan, each notice under paragraph (1) shall 
     include--
       ``(i) a statement that different rules apply to CSEC plans 
     than apply to single-employer plans,
       ``(ii) for the first 2 plan years beginning after December 
     31, 2013, a statement that, as a result of changes in the law 
     made by the Cooperative and Small Employer Charity Pension 
     Flexibility Act, the contributions to the plan may have 
     changed, and
       ``(iii) in the case of a CSEC plan that is in funding 
     restoration status for the plan year, a statement that the 
     plan is in funding restoration status for such plan year.
     A copy of the statement required under clause (iii) shall be 
     provided to the Secretary, the Secretary of the Treasury, and 
     the Director of the Pension Benefit Guaranty Corporation.''.
       (2) Model notice.--The Secretary of Labor may modify the 
     model notice required to be published under section 501(c) of 
     the Pension

[[Page 2077]]

     Protection Act of 2006 to include the information described 
     in section 101(f)(2)(E) of the Employee Retirement Income 
     Security Act of 1974, as added by this subsection.
       (b) Notice of Failure To Meet Minimum Funding Standards.--
       (1) Pending waivers.--Paragraph (2) of section 101(d) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1021(d)) is amended by striking ``303'' and inserting 
     ``303 or 306''.
       (2) Definitions.--Paragraph (3) of section 101(d) of the 
     Employee Retirement Income Security Act of 1974 (21 U.S.C. 
     1021(d)) is amended by striking ``303(j)'' and inserting 
     ``303(j) or 306(f), whichever is applicable''.
       (c) Additional Reporting Requirements.--Section 103 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1023) is amended by adding at the end the following new 
     subsection:
       ``(g) Additional Information With Respect to Multiple 
     Employer Plans.--With respect to any multiple employer plan, 
     an annual report under this section for a plan year shall 
     include a list of participating employers and a good faith 
     estimate of the percentage of total contributions made by 
     such participating employers during the plan year.''.

     SEC. 105. SPONSOR EDUCATION AND ASSISTANCE.

       (a) Definition.--In this section, the term ``CSEC plan'' 
     has the meaning given that term in subsection (f)(1) of 
     section 210 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1060(f)(1)) (as added by this Act).
       (b) Education.--The Participant and Plan Sponsor Advocate 
     established under section 4004 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1304) shall make 
     itself available to assist CSEC plan sponsors and 
     participants as part of the duties it performs under the 
     general supervision of the Board of Directors under section 
     4004(b) of such Act (29 U.S.C. 1304(b)).

         TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

     SEC. 201. DEFINITION OF COOPERATIVE AND SMALL EMPLOYER 
                   CHARITY PENSION PLANS.

       Section 414 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new subsection:
       ``(y) Cooperative and Small Employer Charity Pension 
     Plans.--
       ``(1) In general.--For purposes of this title, except as 
     provided in this subsection, a CSEC plan is a defined benefit 
     plan (other than a multiemployer plan)--
       ``(A) to which section 104 of the Pension Protection Act of 
     2006 applies, without regard to--
       ``(i) section 104(a)(2) of such Act;
       ``(ii) the amendments to such section 104 by section 202(b) 
     of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010; and
       ``(iii) paragraph (3)(B); or
       ``(B) that, as of June 25, 2010, was maintained by more 
     than one employer and all of the employers were organizations 
     described in section 501(c)(3).
       ``(2) Aggregation.--All employers that are treated as a 
     single employer under subsection (b) or (c) shall be treated 
     as a single employer for purposes of determining if a plan 
     was maintained by more than one employer under paragraph 
     (1)(B).''.

     SEC. 202. FUNDING RULES APPLICABLE TO COOPERATIVE AND SMALL 
                   EMPLOYER CHARITY PENSION PLANS.

       (a) In General.--Subpart A of part III of subchapter D of 
     chapter 1 of subtitle A of the Internal Revenue Code of 1986 
     is amended by adding at the end the following new section:

     ``SEC. 433. MINIMUM FUNDING STANDARDS.

       ``(a) General Rule.--For purposes of section 412, the term 
     `accumulated funding deficiency' for a CSEC plan means the 
     excess of the total charges to the funding standard account 
     for all plan years (beginning with the first plan year to 
     which section 412 applies) over the total credits to such 
     account for such years or, if less, the excess of the total 
     charges to the alternative minimum funding standard account 
     for such plan years over the total credits to such account 
     for such years.
       ``(b) Funding Standard Account.--
       ``(1) Account required.--Each plan to which this section 
     applies shall establish and maintain a funding standard 
     account. Such account shall be credited and charged solely as 
     provided in this section.
       ``(2) Charges to account.--For a plan year, the funding 
     standard account shall be charged with the sum of--
       ``(A) the normal cost of the plan for the plan year,
       ``(B) the amounts necessary to amortize in equal annual 
     installments (until fully amortized)--
       ``(i) in the case of a plan in existence on January 1, 
     1974, the unfunded past service liability under the plan on 
     the first day of the first plan year to which section 412 
     applies, over a period of 40 plan years,
       ``(ii) in the case of a plan which comes into existence 
     after January 1, 1974, but before the first day of the first 
     plan year beginning after December 31, 2013, the unfunded 
     past service liability under the plan on the first day of the 
     first plan year to which section 412 applies, over a period 
     of 30 plan years,
       ``(iii) separately, with respect to each plan year, the net 
     increase (if any) in unfunded past service liability under 
     the plan arising from plan amendments adopted in such year, 
     over a period of 15 plan years,
       ``(iv) separately, with respect to each plan year, the net 
     experience loss (if any) under the plan, over a period of 5 
     plan years, and
       ``(v) separately, with respect to each plan year, the net 
     loss (if any) resulting from changes in actuarial assumptions 
     used under the plan, over a period of 10 plan years,
       ``(C) the amount necessary to amortize each waived funding 
     deficiency (within the meaning of section 412(c)(3)) for each 
     prior plan year in equal annual installments (until fully 
     amortized) over a period of 5 plan years,
       ``(D) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 5 plan 
     years any amount credited to the funding standard account 
     under paragraph (3)(D), and
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made 
     under the plan but for the provisions of section 
     412(c)(7)(A)(i)(I) (as in effect on the day before the 
     enactment of the Pension Protection Act of 2006).
       ``(3) Credits to account.--For a plan year, the funding 
     standard account shall be credited with the sum of--
       ``(A) the amount considered contributed by the employer to 
     or under the plan for the plan year,
       ``(B) the amount necessary to amortize in equal annual 
     installments (until fully amortized)--
       ``(i) separately, with respect to each plan year, the net 
     decrease (if any) in unfunded past service liability under 
     the plan arising from plan amendments adopted in such year, 
     over a period of 15 plan years,
       ``(ii) separately, with respect to each plan year, the net 
     experience gain (if any) under the plan, over a period of 5 
     plan years, and
       ``(iii) separately, with respect to each plan year, the net 
     gain (if any) resulting from changes in actuarial assumptions 
     used under the plan, over a period of 10 plan years,
       ``(C) the amount of the waived funding deficiency (within 
     the meaning of section 412(c)(3)) for the plan year, and
       ``(D) in the case of a plan year for which the accumulated 
     funding deficiency is determined under the funding standard 
     account if such plan year follows a plan year for which such 
     deficiency was determined under the alternative minimum 
     funding standard, the excess (if any) of any debit balance in 
     the funding standard account (determined without regard to 
     this subparagraph) over any debit balance in the alternative 
     minimum funding standard account.
       ``(4) Combining and offsetting amounts to be amortized.--
     Under regulations prescribed by the Secretary, amounts 
     required to be amortized under paragraph (2) or paragraph 
     (3), as the case may be--
       ``(A) may be combined into one amount under such paragraph 
     to be amortized over a period determined on the basis of the 
     remaining amortization period for all items entering into 
     such combined amount, and
       ``(B) may be offset against amounts required to be 
     amortized under the other such paragraph, with the resulting 
     amount to be amortized over a period determined on the basis 
     of the remaining amortization periods for all items entering 
     into whichever of the two amounts being offset is the 
     greater.
       ``(5) Interest.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the funding standard account (and items therein) shall be 
     charged or credited (as determined under regulations 
     prescribed by the Secretary) with interest at the appropriate 
     rate consistent with the rate or rates of interest used under 
     the plan to determine costs.
       ``(B) Exception.--The interest rate used for purposes of 
     computing the amortization charge described in subsection 
     (b)(2)(C) or for purposes of any arrangement under subsection 
     (d) for any plan year shall be the greater of--
       ``(i) 150 percent of the Federal mid-term rate (as in 
     effect under section 1274 for the 1st month of such plan 
     year), or
       ``(ii) the rate of interest determined under subparagraph 
     (A).
       ``(6) Amortization schedules in effect.--Amortization 
     schedules for amounts described in paragraphs (2) and (3) 
     that are in effect as of the last day of the last plan year 
     beginning before January 1, 2014, by reason of section 104 of 
     the Pension Protection Act of 2006 shall remain in effect 
     pursuant to their terms and this section, except that such 
     amounts shall not be amortized again under this section.
       ``(c) Special Rules.--
       ``(1) Determinations to be made under funding method.--For 
     purposes of this section, normal costs, accrued liability, 
     past service liabilities, and experience gains and losses 
     shall be determined under the funding method used to 
     determine costs under the plan.
       ``(2) Valuation of assets.--
       ``(A) In general.--For purposes of this section, the value 
     of the plan's assets shall be determined on the basis of any 
     reasonable actuarial method of valuation which takes into 
     account fair market value and which is

[[Page 2078]]

     permitted under regulations prescribed by the Secretary.
       ``(B) Dedicated bond portfolio.--The Secretary may by 
     regulations provide that the value of any dedicated bond 
     portfolio of a plan shall be determined by using the interest 
     rate under section 412(b)(5) (as in effect on the day before 
     the enactment of the Pension Protection Act of 2006).
       ``(3) Actuarial assumptions must be reasonable.--For 
     purposes of this section, all costs, liabilities, rates of 
     interest, and other factors under the plan shall be 
     determined on the basis of actuarial assumptions and 
     methods--
       ``(A) each of which is reasonable (taking into account the 
     experience of the plan and reasonable expectations), and
       ``(B) which, in combination, offer the actuary's best 
     estimate of anticipated experience under the plan.
       ``(4) Treatment of certain changes as experience gain or 
     loss.--For purposes of this section, if--
       ``(A) a change in benefits under the Social Security Act or 
     in other retirement benefits created under Federal or State 
     law, or
       ``(B) a change in the definition of the term `wages' under 
     section 3121 or a change in the amount of such wages taken 
     into account under regulations prescribed for purposes of 
     section 401(a)(5),

     results in an increase or decrease in accrued liability under 
     a plan, such increase or decrease shall be treated as an 
     experience loss or gain.
       ``(5) Funding method and plan year.--
       ``(A) Funding methods available.--All funding methods 
     available to CSEC plans under section 412 (as in effect on 
     the day before the enactment of the Pension Protection Act of 
     2006) shall continue to be available under this section.
       ``(B) Changes.--If the funding method for a plan is 
     changed, the new funding method shall become the funding 
     method used to determine costs and liabilities under the plan 
     only if the change is approved by the Secretary. If the plan 
     year for a plan is changed, the new plan year shall become 
     the plan year for the plan only if the change is approved by 
     the Secretary.
       ``(C) Approval required for certain changes in assumptions 
     by certain single-employer plans subject to additional 
     funding requirement.--
       ``(i) In general.--No actuarial assumption (other than the 
     assumptions described in subsection (h)(3)) used to determine 
     the current liability for a plan to which this subparagraph 
     applies may be changed without the approval of the Secretary.
       ``(ii) Plans to which subparagraph applies.--This 
     subparagraph shall apply to a plan only if--

       ``(I) the plan is a CSEC plan,
       ``(II) the aggregate unfunded vested benefits as of the 
     close of the preceding plan year (as determined under section 
     4006(a)(3)(E)(iii) of the Employee Retirement Income Security 
     Act of 1974) of such plan and all other plans maintained by 
     the contributing sponsors (as defined in section 4001(a)(13) 
     of such Act) and members of such sponsors' controlled groups 
     (as defined in section 4001(a)(14) of such Act) which are 
     covered by title IV (disregarding plans with no unfunded 
     vested benefits) exceed $50,000,000, and
       ``(III) the change in assumptions (determined after taking 
     into account any changes in interest rate and mortality 
     table) results in a decrease in the funding shortfall of the 
     plan for the current plan year that exceeds $50,000,000, or 
     that exceeds $5,000,000 and that is 5 percent or more of the 
     current liability of the plan before such change.

       ``(6) Full funding.--If, as of the close of a plan year, a 
     plan would (without regard to this paragraph) have an 
     accumulated funding deficiency (determined without regard to 
     the alternative minimum funding standard account permitted 
     under subsection (e)) in excess of the full funding 
     limitation--
       ``(A) the funding standard account shall be credited with 
     the amount of such excess, and
       ``(B) all amounts described in paragraphs (2)(B), (C), and 
     (D) and (3)(B) of subsection (b) which are required to be 
     amortized shall be considered fully amortized for purposes of 
     such paragraphs.
       ``(7) Full-funding limitation.--For purposes of paragraph 
     (6), the term `full-funding limitation' means the excess (if 
     any) of--
       ``(A) the accrued liability (including normal cost) under 
     the plan (determined under the entry age normal funding 
     method if such accrued liability cannot be directly 
     calculated under the funding method used for the plan), over
       ``(B) the lesser of--
       ``(i) the fair market value of the plan's assets, or
       ``(ii) the value of such assets determined under paragraph 
     (2).
       ``(C) Minimum amount.--
       ``(i) In general.--In no event shall the full-funding 
     limitation determined under subparagraph (A) be less than the 
     excess (if any) of--

       ``(I) 90 percent of the current liability (determined 
     without regard to paragraph (4) of subsection (h)) of the 
     plan (including the expected increase in such current 
     liability due to benefits accruing during the plan year), 
     over
       ``(II) the value of the plan's assets determined under 
     paragraph (2).

       ``(ii) Assets.--For purposes of clause (i), assets shall 
     not be reduced by any credit balance in the funding standard 
     account.
       ``(8) Annual valuation.--
       ``(A) In general.--For purposes of this section, a 
     determination of experience gains and losses and a valuation 
     of the plan's liability shall be made not less frequently 
     than once every year, except that such determination shall be 
     made more frequently to the extent required in particular 
     cases under regulations prescribed by the Secretary.
       ``(B) Valuation date.--
       ``(i) Current year.--Except as provided in clause (ii), the 
     valuation referred to in subparagraph (A) shall be made as of 
     a date within the plan year to which the valuation refers or 
     within one month prior to the beginning of such year.
       ``(ii) Use of prior year valuation.--The valuation referred 
     to in subparagraph (A) may be made as of a date within the 
     plan year prior to the year to which the valuation refers if, 
     as of such date, the value of the assets of the plan are not 
     less than 100 percent of the plan's current liability.
       ``(iii) Adjustments.--Information under clause (ii) shall, 
     in accordance with regulations, be actuarially adjusted to 
     reflect significant differences in participants.
       ``(iv) Limitation.--A change in funding method to use a 
     prior year valuation, as provided in clause (ii), may not be 
     made unless as of the valuation date within the prior plan 
     year, the value of the assets of the plan are not less than 
     125 percent of the plan's current liability.
       ``(9) Time when certain contributions deemed made.--For 
     purposes of this section, any contributions for a plan year 
     made by an employer during the period--
       ``(A) beginning on the day after the last day of such plan 
     year, and
       ``(B) ending on the day which is 8\1/2\ months after the 
     close of the plan year,
     shall be deemed to have been made on such last day.
       ``(10) Anticipation of benefit increases effective in the 
     future.--In determining projected benefits, the funding 
     method of a collectively bargained CSEC plan described in 
     section 413(a) shall anticipate benefit increases scheduled 
     to take effect during the term of the collective bargaining 
     agreement applicable to the plan.
       ``(d) Extension of Amortization Periods.--The period of 
     years required to amortize any unfunded liability (described 
     in any clause of subsection (b)(2)(B)) of any plan may be 
     extended by the Secretary for a period of time (not in excess 
     of 10 years) if the Secretary determines that such extension 
     would carry out the purposes of the Employee Retirement 
     Income Security Act of 1974 and provide adequate protection 
     for participants under the plan and their beneficiaries, and 
     if the Secretary determines that the failure to permit such 
     extension would result in--
       ``(1) a substantial risk to the voluntary continuation of 
     the plan, or
       ``(2) a substantial curtailment of pension benefit levels 
     or employee compensation.
       ``(e) Alternative Minimum Funding Standard.--
       ``(1) In general.--A CSEC plan which uses a funding method 
     that requires contributions in all years not less than those 
     required under the entry age normal funding method may 
     maintain an alternative minimum funding standard account for 
     any plan year. Such account shall be credited and charged 
     solely as provided in this subsection.
       ``(2) Charges and credits to account.--For a plan year the 
     alternative minimum funding standard account shall be--
       ``(A) charged with the sum of--
       ``(i) the lesser of normal cost under the funding method 
     used under the plan or normal cost determined under the unit 
     credit method,
       ``(ii) the excess, if any, of the present value of accrued 
     benefits under the plan over the fair market value of the 
     assets, and
       ``(iii) an amount equal to the excess (if any) of credits 
     to the alternative minimum standard account for all prior 
     plan years over charges to such account for all such years, 
     and
       ``(B) credited with the amount considered contributed by 
     the employer to or under the plan for the plan year.
       ``(3) Interest.--The alternative minimum funding standard 
     account (and items therein) shall be charged or credited with 
     interest in the manner provided under subsection (b)(5) with 
     respect to the funding standard account.
       ``(f) Quarterly Contributions Required.--
       ``(1) In general.--If a CSEC plan which has a funded 
     current liability percentage for the preceding plan year of 
     less than 100 percent fails to pay the full amount of a 
     required installment for the plan year, then the rate of 
     interest charged to the funding standard account under 
     subsection (b)(5) with respect to the amount of the 
     underpayment for the period of the underpayment shall be 
     equal to the greater of--
       ``(A) 175 percent of the Federal mid-term rate (as in 
     effect under section 1274 for the 1st month of such plan 
     year), or
       ``(B) the rate of interest used under the plan in 
     determining costs.

[[Page 2079]]

       ``(2) Amount of underpayment, period of underpayment.--For 
     purposes of paragraph (1)--
       ``(A) Amount.--The amount of the underpayment shall be the 
     excess of--
       ``(i) the required installment, over
       ``(ii) the amount (if any) of the installment contributed 
     to or under the plan on or before the due date for the 
     installment.
       ``(B) Period of underpayment.--The period for which 
     interest is charged under this subsection with regard to any 
     portion of the underpayment shall run from the due date for 
     the installment to the date on which such portion is 
     contributed to or under the plan (determined without regard 
     to subsection (c)(9)).
       ``(C) Order of crediting contributions.--For purposes of 
     subparagraph (A)(ii), contributions shall be credited against 
     unpaid required installments in the order in which such 
     installments are required to be paid.
       ``(3) Number of required installments; due dates.--For 
     purposes of this subsection--
       ``(A) Payable in 4 installments.--There shall be 4 required 
     installments for each plan year.
       ``(B) Time for payment of installments.--


 
 ``In the case of the following required
              installments:                       The due date is:
 
1st......................................  April 15
2nd......................................  July 15
3rd......................................  October 15
4th......................................  January 15 of the following
                                            year.
 

       ``(4) Amount of required installment.--For purposes of this 
     subsection--
       ``(A) In general.--The amount of any required installment 
     shall be 25 percent of the required annual payment.
       ``(B) Required annual payment.--For purposes of 
     subparagraph (A), the term `required annual payment' means 
     the lesser of--
       ``(i) 90 percent of the amount required to be contributed 
     to or under the plan by the employer for the plan year under 
     section 412 (without regard to any waiver under subsection 
     (c) thereof), or
       ``(ii) 100 percent of the amount so required for the 
     preceding plan year.
     Clause (ii) shall not apply if the preceding plan year was 
     not a year of 12 months.
       ``(5) Liquidity requirement.--
       ``(A) In general.--A plan to which this paragraph applies 
     shall be treated as failing to pay the full amount of any 
     required installment to the extent that the value of the 
     liquid assets paid in such installment is less than the 
     liquidity shortfall (whether or not such liquidity shortfall 
     exceeds the amount of such installment required to be paid 
     but for this paragraph).
       ``(B) Plans to which paragraph applies.--This paragraph 
     shall apply to a CSEC plan other than a plan described in 
     section 412(l)(6)(A) (as in effect on the day before the 
     enactment of the Pension Protection Act of 2006) which--
       ``(i) is required to pay installments under this subsection 
     for a plan year, and
       ``(ii) has a liquidity shortfall for any quarter during 
     such plan year.
       ``(C) Period of underpayment.--For purposes of paragraph 
     (1), any portion of an installment that is treated as not 
     paid under subparagraph (A) shall continue to be treated as 
     unpaid until the close of the quarter in which the due date 
     for such installment occurs.
       ``(D) Limitation on increase.--If the amount of any 
     required installment is increased by reason of subparagraph 
     (A), in no event shall such increase exceed the amount which, 
     when added to prior installments for the plan year, is 
     necessary to increase the funded current liability percentage 
     (taking into account the expected increase in current 
     liability due to benefits accruing during the plan year) to 
     100 percent.
       ``(E) Definitions.--For purposes of this paragraph--
       ``(i) Liquidity shortfall.--The term `liquidity shortfall' 
     means, with respect to any required installment, an amount 
     equal to the excess (as of the last day of the quarter for 
     which such installment is made) of the base amount with 
     respect to such quarter over the value (as of such last day) 
     of the plan's liquid assets.
       ``(ii) Base amount.--

       ``(I) In general.--The term `base amount' means, with 
     respect to any quarter, an amount equal to 3 times the sum of 
     the adjusted disbursements from the plan for the 12 months 
     ending on the last day of such quarter.
       ``(II) Special rule.--If the amount determined under 
     subclause (I) exceeds an amount equal to 2 times the sum of 
     the adjusted disbursements from the plan for the 36 months 
     ending on the last day of the quarter and an enrolled actuary 
     certifies to the satisfaction of the Secretary that such 
     excess is the result of nonrecurring circumstances, the base 
     amount with respect to such quarter shall be determined 
     without regard to amounts related to those nonrecurring 
     circumstances.

       ``(iii) Disbursements from the plan.--The term 
     `disbursements from the plan' means all disbursements from 
     the trust, including purchases of annuities, payments of 
     single sums and other benefits, and administrative expenses.
       ``(iv) Adjusted disbursements.--The term `adjusted 
     disbursements' means disbursements from the plan reduced by 
     the product of--

       ``(I) the plan's funded current liability percentage for 
     the plan year, and
       ``(II) the sum of the purchases of annuities, payments of 
     single sums, and such other disbursements as the Secretary 
     shall provide in regulations.

       ``(v) Liquid assets.--The term `liquid assets' means cash, 
     marketable securities and such other assets as specified by 
     the Secretary in regulations.
       ``(vi) Quarter.--The term `quarter' means, with respect to 
     any required installment, the 3-month period preceding the 
     month in which the due date for such installment occurs.
       ``(F) Regulations.--The Secretary may prescribe such 
     regulations as are necessary to carry out this paragraph.
       ``(6) Fiscal years and short years.--
       ``(A) Fiscal years.--In applying this subsection to a plan 
     year beginning on any date other than January 1, there shall 
     be substituted for the months specified in this subsection, 
     the months which correspond thereto.
       ``(B) Short plan year.--This subsection shall be applied to 
     plan years of less than 12 months in accordance with 
     regulations prescribed by the Secretary.
       ``(g) Imposition of Lien Where Failure To Make Required 
     Contributions.--
       ``(1) In general.--In the case of a plan to which this 
     section applies, if--
       ``(A) any person fails to make a required installment under 
     subsection (f) or any other payment required under this 
     section before the due date for such installment or other 
     payment, and
       ``(B) the unpaid balance of such installment or other 
     payment (including interest), when added to the aggregate 
     unpaid balance of all preceding such installments or other 
     payments for which payment was not made before the due date 
     (including interest), exceeds $1,000,000,
     then there shall be a lien in favor of the plan in the amount 
     determined under paragraph (3) upon all property and rights 
     to property, whether real or personal, belonging to such 
     person and any other person who is a member of the same 
     controlled group of which such person is a member.
       ``(2) Plans to which subsection applies.--This subsection 
     shall apply to a CSEC plan for any plan year for which the 
     funded current liability percentage of such plan is less than 
     100 percent. This subsection shall not apply to any plan to 
     which section 4021 of the Employee Retirement Income Security 
     Act of 1974 does not apply (as such section is in effect on 
     the date of the enactment of the Retirement Protection Act of 
     1994).
       ``(3) Amount of lien.--For purposes of paragraph (1), the 
     amount of the lien shall be equal to the aggregate unpaid 
     balance of required installments and other payments required 
     under this section (including interest)--
       ``(A) for plan years beginning after 1987, and
       ``(B) for which payment has not been made before the due 
     date.
       ``(4) Notice of failure; lien.--
       ``(A) Notice of failure.--A person committing a failure 
     described in paragraph (1) shall notify the Pension Benefit 
     Guaranty Corporation of such failure within 10 days of the 
     due date for the required installment or other payment.
       ``(B) Period of lien.--The lien imposed by paragraph (1) 
     shall arise on the due date for the required installment or 
     other payment and shall continue until the last day of the 
     first plan year in which the plan ceases to be described in 
     paragraph (1)(B). Such lien shall continue to run without 
     regard to whether such plan continues to be described in 
     paragraph (2) during the period referred to in the preceding 
     sentence.
       ``(C) Certain rules to apply.--Any amount with respect to 
     which a lien is imposed under paragraph (1) shall be treated 
     as taxes due and owing the United States and rules similar to 
     the rules of subsections (c), (d), and (e) of section 4068 of 
     the Employee Retirement Income Security Act of 1974 shall 
     apply with respect to a lien imposed by subsection (a) and 
     the amount with respect to such lien.
       ``(5) Enforcement.--Any lien created under paragraph (1) 
     may be perfected and enforced only by the Pension Benefit 
     Guaranty Corporation, or at the direction of the Pension 
     Benefit Guaranty Corporation, by any contributing employer 
     (or any member of the controlled group of the contributing 
     employer).
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Due date; required installment.--The terms `due date' 
     and `required installment' have the meanings given such terms 
     by subsection (f), except that in the case of a payment other 
     than a required installment, the due date shall be the date 
     such payment is required to be made under this section.
       ``(B) Controlled group.--The term `controlled group' means 
     any group treated as a single employer under subsections (b), 
     (c), (m), and (o) of section 414.

[[Page 2080]]

       ``(h) Current Liability.--For purposes of this section--
       ``(1) In general.--The term `current liability' means all 
     liabilities to employees and their beneficiaries under the 
     plan.
       ``(2) Treatment of unpredictable contingent event 
     benefits.--
       ``(A) In general.--For purposes of paragraph (1), any 
     unpredictable contingent event benefit shall not be taken 
     into account until the event on which the benefit is 
     contingent occurs.
       ``(B) Unpredictable contingent event benefit.--The term 
     `unpredictable contingent event benefit' means any benefit 
     contingent on an event other than--
       ``(i) age, service, compensation, death, or disability, or
       ``(ii) an event which is reasonably and reliably 
     predictable (as determined by the Secretary).
       ``(3) Interest rate and mortality assumptions used.--
       ``(A) Interest rate.--The rate of interest used to 
     determine current liability under this section shall be the 
     third segment rate determined under section 430(h)(2)(C).
       ``(B) Mortality tables.--
       ``(i) Secretarial authority.--The Secretary may by 
     regulation prescribe mortality tables to be used in 
     determining current liability under this subsection. Such 
     tables shall be based upon the actual experience of pension 
     plans and projected trends in such experience. In prescribing 
     such tables, the Secretary shall take into account results of 
     available independent studies of mortality of individuals 
     covered by pension plans.
       ``(ii) Periodic review.--The Secretary shall periodically 
     (at least every 5 years) review any tables in effect under 
     this subsection and shall, to the extent the Secretary 
     determines necessary, by regulation update the tables to 
     reflect the actual experience of pension plans and projected 
     trends in such experience.
       ``(C) Separate mortality tables for the disabled.--
     Notwithstanding subparagraph (B)--
       ``(i) In general.--In the case of plan years beginning 
     after December 31, 1995, the Secretary shall establish 
     mortality tables which may be used (in lieu of the tables 
     under subparagraph (B)) to determine current liability under 
     this subsection for individuals who are entitled to benefits 
     under the plan on account of disability. The Secretary shall 
     establish separate tables for individuals whose disabilities 
     occur in plan years beginning before January 1, 1995, and for 
     individuals whose disabilities occur in plan years beginning 
     on or after such date.
       ``(ii) Special rule for disabilities occurring after 
     1994.--In the case of disabilities occurring in plan years 
     beginning after December 31, 1994, the tables under clause 
     (i) shall apply only with respect to individuals described in 
     such subclause who are disabled within the meaning of title 
     II of the Social Security Act and the regulations thereunder.
       ``(4) Certain service disregarded.--
       ``(A) In general.--In the case of a participant to whom 
     this paragraph applies, only the applicable percentage of the 
     years of service before such individual became a participant 
     shall be taken into account in computing the current 
     liability of the plan.
       ``(B) Applicable percentage.--For purposes of this 
     subparagraph, the applicable percentage shall be determined 
     as follows:


 
                                             The applicable  percentage
  ``If the years of  participation are:                 is:
 
1........................................  20
2........................................  40
3........................................  60
4........................................  80
5 or more................................  100.
 

       ``(C) Participants to whom paragraph applies.--This 
     subparagraph shall apply to any participant who, at the time 
     of becoming a participant--
       ``(i) has not accrued any other benefit under any defined 
     benefit plan (whether or not terminated) maintained by the 
     employer or a member of the same controlled group of which 
     the employer is a member,
       ``(ii) who first becomes a participant under the plan in a 
     plan year beginning after December 31, 1987, and
       ``(iii) has years of service greater than the minimum years 
     of service necessary for eligibility to participate in the 
     plan.
       ``(D) Election.--An employer may elect not to have this 
     subparagraph apply. Such an election, once made, may be 
     revoked only with the consent of the Secretary.
       ``(i) Funded Current Liability Percentage.--For purposes of 
     this section, the term `funded current liability percentage' 
     means, with respect to any plan year, the percentage which--
       ``(1) the value of the plan's assets determined under 
     subsection (c)(2), is of
       ``(2) the current liability under the plan.
       ``(j) Funding Restoration Status.--Notwithstanding any 
     other provisions of this section--
       ``(1) Normal cost payment.--
       ``(A) In general.--In the case of a CSEC plan that is in 
     funding restoration status for a plan year, for purposes of 
     section 412, the term `accumulated funding deficiency' means, 
     for such plan year, the greater of--
       ``(i) the amount described in subsection (a), or
       ``(ii) the excess of the normal cost of the plan for the 
     plan year over the amount actually contributed to or under 
     the plan for the plan year.
       ``(B) Normal cost.--In the case of a CSEC plan that uses a 
     spread gain funding method, for purposes of this subsection, 
     the term `normal cost' means normal cost as determined under 
     the entry age normal funding method.
       ``(2) Plan amendments.--In the case of a CSEC plan that is 
     in funding restoration status for a plan year, no amendment 
     to such plan may take effect during such plan year if such 
     amendment has the effect of increasing liabilities of the 
     plan by means of increases in benefits, establishment of new 
     benefits, changing the rate of benefit accrual, or changing 
     the rate at which benefits become nonforfeitable. This 
     paragraph shall not apply to any plan amendment that is 
     required to comply with any applicable law. This paragraph 
     shall cease to apply with respect to any plan year, effective 
     as of the first day of the plan year (or if later, the 
     effective date of the amendment) upon payment by the plan 
     sponsor of a contribution to the plan (in addition to any 
     contribution required under this section without regard to 
     this paragraph) in an amount equal to the increase in the 
     funding liability of the plan attributable to the plan 
     amendment.
       ``(3) Funding restoration plan.--The sponsor of a CSEC plan 
     shall establish a written funding restoration plan within 180 
     days of the receipt by the plan sponsor of a certification 
     from the plan actuary that the plan is in funding restoration 
     status for a plan year. Such funding restoration plan shall 
     consist of actions that are calculated, based on reasonably 
     anticipated experience and reasonable actuarial assumptions, 
     to increase the plan's funded percentage to 100 percent over 
     a period that is not longer than the greater of 7 years or 
     the shortest amount of time practicable. Such funding 
     restoration plan shall take into account contributions 
     required under this section (without regard to this 
     paragraph). If a plan remains in funding restoration status 
     for 2 or more years, such funding restoration plan shall be 
     updated each year after the 1st such year within 180 days of 
     receipt by the plan sponsor of a certification from the plan 
     actuary that the plan remains in funding restoration status 
     for the plan year.
       ``(4) Annual certification by plan actuary.--Not later than 
     the 90th day of each plan year of a CSEC plan, the plan 
     actuary shall certify to the plan sponsor whether or not the 
     plan is in funding restoration status for the plan year, 
     based on the plan's funded percentage as of the beginning of 
     the plan year. For this purpose, the actuary may conclusively 
     rely on an estimate of--
       ``(A) the plan's funding liability, based on the funding 
     liability of the plan for the preceding plan year and on 
     reasonable actuarial estimates, assumptions, and methods, and
       ``(B) the amount of any contributions reasonably 
     anticipated to be made for the preceding plan year.
     Contributions described in subparagraph (B) shall be taken 
     into account in determining the plan's funded percentage as 
     of the beginning of the plan year.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) Funding restoration status.--A CSEC plan shall be 
     treated as in funding restoration status for a plan year if 
     the plan's funded percentage as of the beginning of such plan 
     year is less than 80 percent.
       ``(B) Funded percentage.--The term `funded percentage' 
     means the ratio (expressed as a percentage) which--
       ``(i) the value of plan assets (as determined under 
     subsection (c)(2)), bears to
       ``(ii) the plan's funding liability.
       ``(C) Funding liability.--The term `funding liability' for 
     a plan year means the present value of all benefits accrued 
     or earned under the plan as of the beginning of the plan 
     year, based on the assumptions used by the plan pursuant to 
     this section, including the interest rate described in 
     subsection (b)(5)(A) (without regard to subsection 
     (b)(5)(B)).
       ``(D) Spread gain funding method.--The term `spread gain 
     funding method' has the meaning given such term under rules 
     and forms issued by the Secretary.
       ``(E) Plan sponsor.--The term `plan sponsor' means, with 
     respect to a CSEC plan, the association, committee, joint 
     board of trustees, or other similar group of representatives 
     of the parties who establish or maintain the plan.''.
       (b) CSEC Plans.--Section 413 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) CSEC Plans.--Notwithstanding any other provision of 
     this section, in the case of a CSEC plan--
       ``(1) Funding.--The requirements of section 412 shall be 
     determined as if all participants in the plan were employed 
     by a single employer.
       ``(2) Application of provisions.--Paragraphs (1), (2), (3), 
     and (5) of subsection (c) shall apply.
       ``(3) Deduction limitations.--Each applicable limitation 
     provided by section 404(a) shall be determined as if all 
     participants in

[[Page 2081]]

     the plan were employed by a single employer. The amounts 
     contributed to or under the plan by each employer who 
     maintains the plan (for the portion of the taxable year 
     included within a plan year) shall be considered not to 
     exceed such applicable limitation if the anticipated employer 
     contributions for such plan year of all employers (determined 
     in a reasonable manner not inconsistent with regulations 
     prescribed by the Secretary) do not exceed such limitation. 
     If such anticipated contributions exceed such limitation, the 
     portion of each such employer's contributions which is not 
     deductible under section 404 shall be determined in 
     accordance with regulations prescribed by the Secretary.
       ``(4) Allocations.--Allocations of amounts under paragraph 
     (3) and subsection (c)(5) among the employers maintaining the 
     plan shall not be inconsistent with the regulations 
     prescribed for this purpose by the Secretary.''.
       (c) Separate Rules for Csec Plans.--
       (1) In general.--Paragraph (2) of section 412(a) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of subparagraph (B), by striking the period at the 
     end of subparagraph (C) and inserting ``, and'', and by 
     inserting at the end thereof the following new subparagraph:
       ``(D) in the case of a CSEC plan, the employers make 
     contributions to or under the plan for any plan year which, 
     in the aggregate, are sufficient to ensure that the plan does 
     not have an accumulated funding deficiency under section 433 
     as of the end of the plan year.''.
       (2) Conforming amendments.--Section 412 of such Code is 
     amended--
       (A) by striking ``multiemployer plan'' in paragraph (A) of 
     subsection (a)(2), in clause (i) of subsection (c)(1)(B), the 
     first place it appears in clause (i) of subsection (c)(1)(A), 
     and the last place it appears in paragraph (2) of subsection 
     (d), and inserting ``multiemployer plan or a CSEC plan'',
       (B) by striking ``430(j)'' in paragraph (1) of subsection 
     (b) and inserting ``430(j) or under section 433(f)'',
       (C)(i) by striking ``and'' at the end of clause (i) of 
     subsection (c)(1)(B),
       (ii) by striking the period at the end of clause (ii) of 
     subsection (c)(1)(B) and inserting ``, and'', and
       (iii) by inserting the following new clause after clause 
     (ii) of subsection (c)(1)(B):
       ``(iii) in the case of a CSEC plan, the funding standard 
     account shall be credited under section 433(b)(3)(C) with the 
     amount of the waived funding deficiency and such amount shall 
     be amortized as required under section 433(b)(2)(C).'',
       (D) by striking ``under paragraph (1)'' in clause (i) of 
     subsection (c)(4)(A) and inserting ``under paragraph (1) or 
     for granting an extension under section 433(d)'',
       (E) by striking ``waiver under this subsection'' in 
     subparagraph (B) of subsection (c)(4) and inserting ``waiver 
     under this subsection or an extension under 433(d)'',
       (F) by striking ``waiver or modification'' in subclause (I) 
     of subsection (c)(4)(B)(i) and inserting ``waiver, 
     modification, or extension'',
       (G) by striking ``waivers'' in the heading of subsection 
     (c)(4)(C) and of clause (ii) of subsection (c)(4)(C) and 
     inserting ``waivers or extensions'',
       (H) by striking ``section 431(d)'' in subparagraph (A) of 
     subsection (c)(7) and in paragraph (2) of subsection (d) and 
     inserting ``section 431(d) or section 433(d)'',
       (I) by striking ``and'' at the end of subclause (I) of 
     subsection (c)(4)(C)(i) and inserting ``or the accumulated 
     funding deficiency under section 433, whichever is 
     applicable,'',
       (J) by striking ``430(e)(2),'' in subclause (II) of 
     subsection (c)(4)(C)(i) and inserting ``430(e)(2) or 
     433(b)(2)(C), whichever is applicable, and'',
       (K) by adding immediately after subclause (II) of 
     subsection (c)(4)(C)(i) the following new subclause:

       ``(III) the total amounts not paid by reason of an 
     extension in effect under section 433(d),'', and

       (L) by striking ``for waivers of'' in clause (ii) of 
     subsection (c)(4)(C) and inserting ``for waivers or 
     extensions with respect to''.
       (3) Benefit restrictions.--
       (A) In general.--Paragraph (29) of section 401(a) of such 
     Code is amended by striking ``multiemployer plan'' and 
     inserting ``multiemployer plan or a CSEC plan''.
       (B) Conforming change.--Subsection (a) of section 436 of 
     such Code is amended by striking ``single-employer plan'' and 
     inserting ``single-employer plan (other than a CSEC plan)''.
       (4) Benefit increases.--Subparagraph (C) of section 
     401(a)(33) of such Code is amended by striking 
     ``multiemployer plans'' and inserting ``multiemployer plans 
     or CSEC plans''.
       (5) Liquidity shortfalls.--
       (A) In general.--Subparagraph (A) of section 401(a)(32) of 
     such Code is amended by striking ``430(j)(4)'' each place it 
     appears and inserting ``430(j)(4) or 433(f)(5)''.
       (B) Period of shortfall.--Subparagraph (C) of section 
     401(a)(32) of such Code is amended by striking ``430(j)(3) by 
     reason of section 430(j)(4)(A) thereof'' and inserting 
     ``430(j)(3) or 433(f) by reason of section 430(j)(4)(A) or 
     433(f)(5), respectively''.
       (6) Deduction limits.--Subsection (o) of section 404 of 
     such Code is amended by adding at the end the following new 
     paragraph:
       ``(8) CSEC plans.--Solely for purposes of this subsection, 
     a CSEC plan shall be treated as though section 430 applied to 
     such plan and the minimum required contribution for any plan 
     year shall be the amount described in section 
     412(a)(2)(D).''.
       (7) Section 420.--Paragraph (5) of section 420(e) of such 
     Code is amended by striking ``section 430'' each place it 
     appears and inserting ``sections 430 and 433''.
       (8) Coordination with section 4971.--
       (A) Subsection (a) of section 4971 of such Code is amended 
     by striking ``and'' at the end of paragraph (1), by striking 
     the period at the end of paragraph (2) and inserting ``, 
     and'', and by adding at the end thereof the following new 
     paragraph:
       ``(3) in the case of a CSEC plan, 10 percent of the CSEC 
     accumulated funding deficiency as of the end of the plan year 
     ending with or within the taxable year.''.
       (B) Subsection (b) of section 4971 of such Code is 
     amended--
       (i) by striking ``or'' at the end of paragraph (1), by 
     adding ``or'' at the end of paragraph (2), and by inserting 
     immediately after paragraph (2) the following new paragraph:
       ``(3) a tax is imposed under subsection (a)(3) on any CSEC 
     accumulated funding deficiency and the CSEC accumulated 
     funding deficiency is not corrected within the taxable 
     period,'', and
       (ii) by striking ``minimum required contributions or 
     accumulated funding deficiency'' and inserting ``minimum 
     required contribution, accumulated funding deficiency, or 
     CSEC accumulated funding deficiency''.
       (C) Subsection (c) of section 4971 of such Code is 
     amended--
       (i) by striking ``accumulated funding deficiency'' each 
     place it appears in paragraph (2) and inserting ``accumulated 
     funding deficiency or CSEC accumulated funding deficiency'',
       (ii) by striking ``accumulated funding deficiency or unpaid 
     minimum required contribution'' each place it appears in 
     paragraph (3) and inserting ``accumulated funding deficiency, 
     CSEC accumulated funding deficiency, or unpaid minimum 
     required contribution'', and
       (iii) by adding at the end the following new paragraph:
       ``(5) CSEC accumulated funding deficiency.--The term `CSEC 
     accumulated funding deficiency' means the accumulated funding 
     deficiency determined under section 433.''.
       (D) Paragraph (1) of section 4971(d) of such Code is 
     amended by striking ``accumulated funding deficiency or 
     unpaid minimum required contribution'' and inserting 
     ``accumulated funding deficiency, CSEC accumulated funding 
     deficiency, or unpaid minimum required contribution''.
       (E) Subsection (f) of section 4971 of such Code is 
     amended--
       (i) by striking ``430(j)(4)'' in paragraph (1) and 
     inserting ``430(j)(4) or 433(f)'',
       (ii) by striking ``430(j)'' in paragraph (1)(B) and 
     inserting ``430(j) or 433(f), whichever is applicable'', and
       (iii) by striking ``412(m)(5)'' in paragraph (3)(A) and 
     inserting ``430(j) or 433(f), whichever is applicable''.
       (9) Excise tax on failure to adopt funding restoration 
     plan.--Section 4971 of such Code is amended by redesignating 
     subsection (h) as subsection (i), and by inserting after 
     subsection (g) the following new subsection:
       ``(h) Failure of a CSEC Plan Sponsor to Adopt Funding 
     Restoration Plan.--
       ``(1) In general.--In the case of a CSEC plan that is in 
     funding restoration status (within the meaning of section 
     433(j)(5)(A)), there is hereby imposed a tax on the failure 
     of such plan to adopt a funding restoration plan within the 
     time prescribed under section 433(j)(3).
       ``(2) Amount of tax.--The amount of the tax imposed under 
     paragraph (1) with respect to any plan sponsor for any 
     taxable year shall be the amount equal to $100 multiplied by 
     the number of days during the taxable year which are included 
     in the period beginning on the day following the close of the 
     180-day period described in section 433(j)(3) and ending on 
     the day on which the funding restoration plan is adopted.
       ``(3) Waiver by secretary.--In the case of a failure 
     described in paragraph (1) which the Secretary determines is 
     due to reasonable cause and not to willful neglect, the 
     Secretary may waive a portion or all of the tax imposed by 
     such paragraph.
       ``(4) Liability for tax.--The tax imposed by paragraph (1) 
     shall be paid by the plan sponsor (within the meaning of 
     section 433(j)(5)(E)).''.
       (10) Reporting.--
       (A) In general.--Paragraph (2) of section 6059(b) of such 
     Code is amended by striking ``430,'' and inserting ``430, the 
     accumulated funding deficiency under section 433,''.
       (B) Assumptions.--Subparagraph (B) of section 6059(b)(3) of 
     such Code is amended by striking ``430(h)(1) or 431(c)(3)'' 
     and inserting ``430(h)(1), 431(c)(3), or 433(c)(3)''.

     SEC. 203. ELECTION NOT TO BE TREATED AS A CSEC PLAN.

       (a) In General.--Section 414(y) of the Internal Revenue 
     Code of 1986, as added by section 201, is amended by adding 
     at the end the following new paragraph:

[[Page 2082]]

       ``(3) Election.--
       ``(A) In general.--If a plan falls within the definition of 
     a CSEC plan under this subsection (without regard to this 
     paragraph), such plan shall be a CSEC plan unless the plan 
     sponsor elects not later than the close of the first plan 
     year of the plan beginning after December 31, 2013, not to be 
     treated as a CSEC plan. An election under the preceding 
     sentence shall take effect for such plan year and, once made, 
     may be revoked only with the consent of the Secretary.
       ``(B) Special rule.--If a plan described in subparagraph 
     (A) is treated as a CSEC plan, section 104 of the Pension 
     Protection Act of 2006, as amended by the Preservation of 
     Access to Care for Medicare Beneficiaries and Pension Relief 
     Act of 2010, shall cease to apply to such plan as of the 
     first date as of which such plan is treated as a CSEC 
     plan.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as of the date of enactment of this Act.

                                 ______
                                 
  SA 2702. Mrs. HAGAN (for herself and Mr. Pryor) submitted an 
amendment intended to be proposed by her to the bill S. 1926, to delay 
the implementation of certain provisions of the Biggert-Waters Flood 
Insurance Reform Act of 2012 and to reform the National Association of 
Registered Agents and Brokers, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title I, add the following:

     SEC. 1__. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD 
                   INSURANCE PAYMENTS.

       (a) In General.--Section 102(d)(1) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
       (1) in subparagraph (A), in the second sentence, by 
     striking ``subparagraph (C)'' and inserting ``subparagraph 
     (B)''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by redesignating subclauses (I) and 
     (II) as items (aa) and (bb), respectively, and adjusting the 
     margins accordingly;
       (B) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and adjusting the margins 
     accordingly;
       (C) in the matter preceding subclause (I), as redesignated 
     by subparagraph (B), by striking ``(A) or (B), if--'' and 
     inserting the following: ``(A)--
       ``(i) if--'';
       (D) by striking the period at the end and inserting ``; 
     or''; and
       (E) by adding at the end the following
       ``(ii) in the case of a loan that--

       ``(I) is in a junior or subordinate position to a senior 
     lien secured by the same residential improved real estate or 
     mobile home for which flood insurance is being provided at 
     the time of the origination of the loan;
       ``(II) is secured by residential improved real estate or a 
     mobile home that is part of a condominium, cooperative, or 
     other project development, if the residential improved real 
     estate or mobile home is covered by a flood insurance policy 
     that--

       ``(aa) meets the requirements that the regulated lending 
     institution is required to enforce under subsection (b)(1);
       ``(bb) is provided by the condominium association, 
     cooperative, homeowners association, or other applicable 
     group; and
       ``(cc) the premium for which is paid by the condominium 
     association, cooperative, homeowners association, or other 
     applicable group as a common expense;

       ``(III) is secured by residential improved real estate or a 
     mobile home that is used as collateral for a business 
     purpose;
       ``(IV) is a home equity line of credit;
       ``(V) is a nonperforming loan; or
       ``(VI) has a term of not longer than 12 months.''.

       (b) Applicability.--
       (1) In general.--
       (A) Required application.--The amendments to section 
     102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-
     Waters Flood Insurance Reform Act of 2012 (Public Law 112-
     141; 126 Stat. 920) and by subsection (a) of this section 
     shall apply to any loan that is originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016.
       (B) Optional application.--
       (i) Definitions.--In this subparagraph--

       (I) the terms ``Federal entity for lending regulation'', 
     ``improved real estate'', ``regulated lending institution'', 
     and ``servicer'' have the meanings given the terms in section 
     3 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4003);
       (II) the term ``outstanding loan'' means a loan that--

       (aa) is outstanding as of January 1, 2016;
       (bb) is not subject to the requirement to escrow premiums 
     and fees for flood insurance under section 102(d)(1) of the 
     Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) 
     as in effect on July 5, 2012; and
       (cc) would, if the loan had been originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016, 
     be subject to the requirements under section 102(d)(1)(A) of 
     the Flood Disaster Protection Act of 1973, as amended; and

       (III) the term ``section 102(d)(1)(A) of the Flood Disaster 
     Protection Act of 1973, as amended'' means section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)(A)), as amended by--

       (aa) section 100209(a) of the Biggert-Waters Flood 
     Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat. 
     920); and
       (bb) subsection (a) of this section.
       (ii) Option to escrow flood insurance payments.--Each 
     Federal entity for lending regulation (after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council) shall, by regulation, direct that each 
     regulated lending institution or servicer of an outstanding 
     loan shall offer and make available to a borrower the option 
     to have the borrower's payment of premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.), including the escrow of such payments, 
     be treated in the same manner provided under section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as 
     amended.
       (2) Repeal of 2-year delay on applicability.--Subsection 
     (b) of section 100209 of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is 
     repealed.
       (3) Rule of construction.--Nothing in this section or the 
     amendments made by this section shall be construed to 
     supersede, during the period beginning on July 6, 2012 and 
     ending on December 31, 2015, the requirements under section 
     102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.
                                 ______
                                 
  SA 2703. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. __. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE 
                   OPTIONS.

       (a) Study.--
       (1) Study required.--The Administrator shall conduct a 
     study to assess options, methods, and strategies for making 
     available voluntary community-based flood insurance policies 
     through the National Flood Insurance Program.
       (2) Considerations.--The study conducted under paragraph 
     (1) shall--
       (A) take into consideration and analyze how voluntary 
     community-based flood insurance policies--
       (i) would affect communities having varying economic bases, 
     geographic locations, flood hazard characteristics or 
     classifications, and flood management approaches; and
       (ii) could satisfy the applicable requirements under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a); and
       (B) evaluate the advisability of making available voluntary 
     community-based flood insurance policies to communities, 
     subdivisions of communities, and areas of residual risk.
       (3) Consultation.--In conducting the study required under 
     paragraph (1), the Administrator may consult with the 
     Comptroller General of the United States, as the 
     Administrator determines is appropriate.
       (b) Report by the Administrator.--
       (1) Report required.--Not later than 18 months after the 
     date of enactment of this Act, the Administrator shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Financial Services of the 
     House of Representatives a report that contains the results 
     and conclusions of the study conducted under subsection (a).
       (2) Contents.--The report submitted under paragraph (1) 
     shall include recommendations for--
       (A) the best manner to incorporate voluntary community-
     based flood insurance policies into the National Flood 
     Insurance Program; and
       (B) a strategy to implement voluntary community-based flood 
     insurance policies that would encourage communities to 
     undertake flood mitigation activities, including the 
     construction, reconstruction, or improvement of levees, dams, 
     or other flood control structures.
       (c) Report by Comptroller General.--Not later than 6 months 
     after the date on which the Administrator submits the report 
     required under subsection (b), the Comptroller General of the 
     United States shall--
       (1) review the report submitted by the Administrator; and
       (2) submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that contains--
       (A) an analysis of the report submitted by the 
     Administrator;
       (B) any comments or recommendations of the Comptroller 
     General relating to the report submitted by the 
     Administrator; and
       (C) any other recommendations of the Comptroller General 
     relating to community-based flood insurance policies.

[[Page 2083]]


                                 ______
                                 
  SA 2704. Mr. RUBIO submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of section 103, add the following:
       (h) Disclosure.--
       (1) Change in rates under biggert-waters.--Not later than 
     the date that is 6 months before the date on which any change 
     in risk premium rates for flood insurance coverage under the 
     National Flood Insurance Program resulting from the amendment 
     made by section 100207 of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (Public Law 112-141; 126 Stat. 919) is 
     implemented, the Administrator shall make publicly available 
     the rate tables and underwriting guidelines that provide the 
     basis for the change.
       (2) Change in rates under this act.--Not later than the 
     date that is 6 months before the date on which any change in 
     risk premium rates for flood insurance coverage under the 
     National Flood Insurance Program resulting from this Act or 
     any amendment made by this Act is implemented, the 
     Administrator shall make publicly available the rate tables 
     and underwriting guidelines that provide the basis for the 
     change.
       (3) Report on policy and claims data.--
       (A) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report on the feasibility of--
       (i) releasing property-level policy and claims data for 
     flood insurance coverage under the National Flood Insurance 
     Program; and
       (ii) establishing guidelines for releasing property-level 
     policy and claims data for flood insurance coverage under the 
     National Flood Insurance Program in accordance with section 
     552a of title 5, United States Code (commonly known as the 
     ``Privacy Act of 1974'').
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include--
       (i) an analysis and assessment of how releasing property-
     level policy and claims data for flood insurance coverage 
     under the National Flood Insurance Program will aid policy 
     holders and insurers to understand how the Administration 
     determines actuarial premium rates and assesses flood risks; 
     and
       (ii) recommendations for protecting personal information in 
     accordance with section 552a of title 5, United States Code 
     (commonly known as the ``Privacy Act of 1974'').
       At the end of title I, add the following:

     SEC. 110. MONTHLY INSTALLMENT PAYMENTS FOR PREMIUMS.

       Section 1308(g) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(g)) is amended by striking ``either annually 
     or in more frequent installments'' and inserting ``annually, 
     monthly, or in other installments that are more frequent than 
     annually''.

     SEC. 111. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN 
                   ESTIMATES OF PREMIUM RATES.

       Section 1307(a)(1) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4014(a)(1)) is amended by amending 
     subparagraph (A) to read as follows:
       ``(A) based on consideration of--
       ``(i) the risk involved and accepted actuarial principles; 
     and
       ``(ii) the flood mitigation activities that an owner or 
     lessee has undertaken on a property, including differences in 
     the risk involved due to land use measures, floodproofing, 
     flood forecasting, and similar measures,''.
                                 ______
                                 
  SA 2705. Mr. KING (for himself and Ms. Collins) submitted an 
amendment intended to be proposed by him to the bill S. 1926, to delay 
the implementation of certain provisions of the Biggert-Waters Flood 
Insurance Reform Act of 2012 and to reform the National Association of 
Registered Agents and Brokers, and for other purposes; which was 
ordered to lie on the table; as follows:

       In section 106, strike subsection (a) and insert the 
     following:
       (a) In General.--Section 1363(f) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104(f)) is amended--
       (1) in the first sentence, by inserting after ``as the case 
     may be,'' the following: ``or, in the case of an appeal that 
     is resolved by submission of conflicting data to the 
     Scientific Resolution Panel provided for in section 1363A, 
     the community,''; and
       (2) by striking the second sentence and inserting the 
     following: ``The Administrator may use such amounts from the 
     National Flood Insurance Fund established under section 1310 
     as may be necessary to carry out this subsection.''.
                                 ______
                                 
  SA 2706. Mr. WHITEHOUSE submitted an amendment intended to be 
proposed by him to the bill S. 1926, to delay the implementation of 
certain provisions of the Biggert-Waters Flood Insurance Reform Act of 
2012 and to reform the National Association of Registered Agents and 
Brokers, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. __. EXEMPTION FROM FEES FOR CERTAIN MAP CHANGE REQUESTS.

       Notwithstanding any other provision of law, a requester 
     shall be exempt from submitting a review or processing fee 
     for a request for a flood insurance rate map change based on 
     a habitat restoration project that is funded in whole or in 
     part with Federal or State funds, including dam removal, 
     culvert redesign or installation, or the installation of fish 
     passage.
                                 ______
                                 
  SA 2707. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike sections 103 through 109 and insert the following:

     SEC. 103. PHASE-IN OF FLOOD INSURANCE RATE INCREASES.

       (a) Map Changes.--Section 1308(h) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015(h)) is amended--
       (1) in the second sentence, by striking ``shall be phased 
     in over a 5-year period'' and all that follows and inserting 
     the following: ``shall be implemented by increasing the risk 
     premium rate by 25 percent each year following such effective 
     date until the risk premium rate accurately reflects the 
     current risk of flood to such property.''; and
       (2) in the third sentence, by striking ``shall be phased in 
     over a 5-year period'' and all that follows and inserting the 
     following: ``shall be phased in by increasing the risk 
     premium rate by 25 percent each year following the effective 
     date of such issuance, revision, updating, or change.''.
       (b) Home Sale Trigger.--
       (1) Phase-in.--Section 1308(e) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) described in section 1307(g)(2) that are principal 
     residences shall be increased by 25 percent each year, 
     beginning in the year after the first sale of such a property 
     that occurs after the date of enactment of the Biggert-Waters 
     Flood Insurance Reform Act of 2012 and continuing in each 
     successive year regardless of any further sale or resale of 
     the property, until the risk premium rate charged for the 
     property accurately reflects the current risk of flood to the 
     property.''.
       (2) Application of phase-in to principal residences 
     purchased between july 7, 2012 and april 1, 2013.--
       (A) Definition.--In this paragraph, the term ``eligible 
     policy'' means a flood insurance policy--
       (i) that covers a principal residence that was purchased 
     during the period beginning on July 7, 2012 and ending on 
     April 1, 2013; and
       (ii) for which the risk premium rate charged was increased, 
     after the purchase described in clause (i), to the full risk 
     premium rate estimated under subsection (a)(1) of section 
     1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4014) as required under subsection (g)(2) of such section (as 
     in effect on the day before the date of enactment of this 
     Act).
       (B) Application of phase-in to risk premium rate upon 
     policy renewal.--The risk premium rate charged for an 
     eligible policy shall--
       (i) on the date on which the policy is first renewed after 
     the date of enactment of this Act, be adjusted to be the rate 
     that would have been charged as of that date if the phase-in 
     provision under paragraph (3) of section 1308(e) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), as 
     added by paragraph (1) of this subsection, had been in effect 
     when the property covered by the eligible policy was 
     purchased; and
       (ii) be increased by 25 percent each year thereafter, in 
     accordance with paragraph (3) of section 1308(e) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), as 
     added by paragraph (1) of this subsection.
       (c) Promulgation of Regulations and Rate Tables.--
       (1) In general.--The Administrator shall promulgate such 
     regulations and make available such rate tables as necessary 
     to implement subsections (a) and (b) and the amendments made 
     by those subsections, as though those subsections were 
     enacted as part of the Biggert-Waters Flood Insurance Reform 
     Act of 2012 (Public Law 112-141; 126 Stat. 916).
       (2) Public participation.--To ensure community, 
     stakeholder, and expert participation in the promulgation of 
     regulations and

[[Page 2084]]

     the establishment of rate tables under this subsection, the 
     Administrator shall--
       (A) publish the regulations and rate tables in the Federal 
     Register; and
       (B) before promulgating final regulations and making 
     available final rate tables, provide a period for public 
     comment on the regulations and rate tables published under 
     subparagraph (A) that is not shorter than 45 days.
       (3) Timing of premium changes.--To allow for appropriate 
     implementation of subsections (a) and (b) and the amendments 
     made by those subsections, the Administrator may not 
     implement any premium changes with respect to policy holders, 
     including charges or rebates, that are necessary to implement 
     subsections (a) and (b) and the amendments made by those 
     subsections until the date that is 6 months after the date on 
     which the Administrator promulgates final regulations and 
     makes available final rate tables under this subsection.
       (d) Flood Insurance Fee.--
       (1) In general.--Section 1308 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding 
     at the end the following:
       ``(j) Fee to Offset Phase-in of Certain Premium Rate 
     Increases.--
       ``(1) In general.--The Administrator shall charge an annual 
     fee to each holder of a flood insurance policy issued under 
     this Act to offset the costs of the Homeowner Flood Insurance 
     Affordability Act of 2014 and the amendments made by that 
     Act.
       ``(2) Amount.--In establishing an amount of the fee to be 
     charged under paragraph (1), the Administrator shall charge a 
     policyholder with an annual household income that is not less 
     than $500,000 twice the amount that the Administrator charges 
     a policyholder with an annual household income that is less 
     than $500,000.''.
       (2) Applicability.--The Administrator shall charge the fee 
     required under section 1308(j) of the National Flood 
     Insurance Act of 1968, as added by paragraph (1), with 
     respect to any flood insurance policy that is issued or 
     renewed on or after the date of enactment of this Act.

     SEC. 104. AFFORDABILITY STUDY AND REPORT.

       Notwithstanding the deadline under section 100236(c) of the 
     Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 
     112- 141; 126 Stat. 957), not later than 2 years after the 
     date of enactment of this Act, the Administrator shall submit 
     to the full Committee on Banking, Housing, and Urban Affairs 
     and the full Committee on Appropriations of the Senate and 
     the full Committee on Financial Services and the full 
     Committee on Appropriations of the House of Representatives 
     the affordability study and report required under such 
     section.

     SEC. 105. AFFORDABILITY STUDY FUNDING.

       Section 100236(d) of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (Public Law 112-141; 126 Stat. 957) is 
     amended by striking ``not more than $750,000'' and inserting 
     ``such amounts as may be necessary''.

     SEC. 106. FUNDS TO REIMBURSE HOMEOWNERS AND COMMUNITIES FOR 
                   SUCCESSFUL MAP APPEALS.

       (a) In General.--Section 1363(f) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104(f)) is amended--
       (1) in the first sentence, by inserting after ``as the case 
     may be,'' the following: ``or, in the case of an appeal that 
     is resolved by submission of conflicting data to the 
     Scientific Resolution Panel provided for in section 1363A, 
     the community,''; and
       (2) by striking the second sentence and inserting the 
     following: ``The Administrator may use such amounts from the 
     National Flood Insurance Fund established under section 1310 
     as may be necessary to carry out this subsection.''.
       (b) Conforming Amendment.--Section 1310(a) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
       (1) in paragraph (6), by striking ``and'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(8) for carrying out section 1363(f).''.

     SEC. 107. FLOOD PROTECTION SYSTEMS.

       (a) Adequate Progress on Construction of Flood Protection 
     Systems.--Section 1307(e) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4014(e)) is amended--
       (1) in the first sentence, by inserting ``or 
     reconstruction'' after ``construction'';
       (2) by striking the second sentence and inserting the 
     following: ``The Administrator shall find that adequate 
     progress on the construction or reconstruction of a flood 
     protection system, based on the present value of the 
     completed flood protection system, has been made only if (1) 
     100 percent of the cost of the system has been authorized, 
     (2) at least 60 percent of the cost of the system has been 
     appropriated, (3) at least 50 percent of the cost of the 
     system has been expended, and (4) the system is at least 50 
     percent completed.''; and
       (3) by adding at the end the following: ``Notwithstanding 
     any other provision of law, in determining whether a 
     community has made adequate progress on the construction, 
     reconstruction, or improvement of a flood protection system, 
     the Administrator shall consider all sources of funding, 
     including Federal, State, and local funds.''.
       (b) Communities Restoring Disaccredited Flood Protection 
     Systems.--Section 1307(f) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4014(f)) is amended by striking the first 
     sentence and inserting the following: ``Notwithstanding any 
     other provision of law, this subsection shall apply to 
     riverine and coastal levees that are located in a community 
     which has been determined by the Administrator of the Federal 
     Emergency Management Agency to be in the process of restoring 
     flood protection afforded by a flood protection system that 
     had been previously accredited on a Flood Insurance Rate Map 
     as providing 100-year frequency flood protection but no 
     longer does so, and shall apply without regard to the level 
     of Federal funding of or participation in the construction, 
     reconstruction, or improvement of the flood protection 
     system.''.

     SEC. 108. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.

       In implementing section 1308(h) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015(h)), the Administrator 
     shall rate a covered structure using the elevation difference 
     between the floodproofed elevation of the covered structure 
     and the adjusted base flood elevation of the covered 
     structure.

     SEC. 109. DESIGNATION OF FLOOD INSURANCE ADVOCATE.

       (a) In General.--The Administrator shall designate a Flood 
     Insurance Advocate to advocate for the fair treatment of 
     policy holders under the National Flood Insurance Program and 
     property owners in the mapping of flood hazards, the 
     identification of risks from flood, and the implementation of 
     measures to minimize the risk of flood.
       (b) Duties and Responsibilities.--The duties and 
     responsibilities of the Flood Insurance Advocate designated 
     under subsection (a) shall be to--
       (1) educate property owners and policyholders under the 
     National Flood Insurance Program on--
       (A) individual flood risks;
       (B) flood mitigation;
       (C) measures to reduce flood insurance rates through 
     effective mitigation; and
       (D) the flood insurance rate map review and amendment 
     process;
       (2) assist policy holders under the National Flood 
     Insurance Program and property owners to understand the 
     procedural requirements related to appealing preliminary 
     flood insurance rate maps and implementing measures to 
     mitigate evolving flood risks;
       (3) assist in the development of regional capacity to 
     respond to individual constituent concerns about flood 
     insurance rate map amendments and revisions;
       (4) coordinate outreach and education with local officials 
     and community leaders in areas impacted by proposed flood 
     insurance rate map amendments and revisions; and
       (5) aid potential policy holders under the National Flood 
     Insurance Program in obtaining and verifying accurate and 
     reliable flood insurance rate information when purchasing or 
     renewing a flood insurance policy.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for each fiscal year such sums as may be 
     necessary to carry out the duties and responsibilities of the 
     Flood Insurance Advocate.

     SEC. 110. HOME IMPROVEMENT FAIRNESS.

       Section 1307(a)(2)(E)(ii) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by 
     striking ``30 percent'' and inserting ``50 percent''.

     SEC. 111. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD 
                   INSURANCE PAYMENTS.

       (a) In General.--Section 102(d)(1) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
       (1) in subparagraph (A), in the second sentence, by 
     striking ``subparagraph (C)'' and inserting ``subparagraph 
     (B)''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by redesignating subclauses (I) and 
     (II) as items (aa) and (bb), respectively, and adjusting the 
     margins accordingly;
       (B) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and adjusting the margins 
     accordingly;
       (C) in the matter preceding subclause (I), as redesignated 
     by subparagraph (B), by striking ``(A) or (B), if--'' and 
     inserting the following: ``(A)--
       ``(i) if--'';
       (D) by striking the period at the end and inserting ``; 
     or''; and
       (E) by adding at the end the following
       ``(ii) in the case of a loan that is--

       ``(I) in a junior or subordinate position to a senior lien 
     secured by the same property for which flood insurance is 
     being provided at the time of the origination of the loan;
       ``(II) secured by residential improved real estate or a 
     mobile home that is part of a condominium, cooperative, or 
     other project development, if the residential improved real 
     estate or mobile home is covered by a flood insurance policy 
     that--

       ``(aa) meets the requirements that the regulated lending 
     institution is required to enforce under subsection (b)(1);
       ``(bb) is provided by the condominium association, 
     cooperative, homeowners association, or other applicable 
     group; and
       ``(cc) the premium for which is paid by the condominium 
     association, cooperative, homeowners association, or other 
     applicable group as a common expense;

[[Page 2085]]

       ``(III) secured by residential improved real estate or a 
     mobile home that is used as collateral for a business 
     purpose; or
       ``(IV) a home equity line of credit or a home equity 
     loan.''.

       (b) Applicability.--
       (1) In general.--
       (A) Required application.--The amendments to section 
     102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-
     Waters Flood Insurance Reform Act of 2012 (Public Law 112-
     141; 126 Stat. 920) and by subsection (a) of this section 
     shall apply to any loan that is originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016.
       (B) Optional application.--
       (i) Definitions.--In this subparagraph--

       (I) the terms ``Federal entity for lending regulation'', 
     ``improved real estate'', ``regulated lending institution'', 
     and ``servicer'' have the meanings given the terms in section 
     3 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4003);
       (II) the term ``outstanding loan'' means a loan that--

       (aa) is outstanding as of January 1, 2016; and
       (bb) would, if the loan had been originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016, 
     be subject to the requirements under section 102(d)(1)(A) of 
     the Flood Disaster Protection Act of 1973, as amended; and

       (III) the term ``section 102(d)(1)(A) of the Flood Disaster 
     Protection Act of 1973, as amended'' means section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)(A)), as amended by--

       (aa) section 100209(a) of the Biggert-Waters Flood 
     Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat. 
     920); and
       (bb) subsection (a) of this section.
       (ii) Option to escrow flood insurance payments.--Each 
     Federal entity for lending regulation (after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council) shall, by regulation, direct that each 
     regulated lending institution or servicer of an outstanding 
     loan shall offer and make available to a borrower the option 
     to have the borrower's payment of premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.), including the escrow of such payments, 
     be treated in the same manner provided under section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as 
     amended.
       (2) Repeal of 2-year delay on applicability.--Subsection 
     (b) of section 100209 of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is 
     repealed.
                                 ______
                                 
  SA 2708. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed by her to the bill S. 1926, to delay the implementation of 
certain provisions of the Biggert-Waters Flood Insurance Reform Act of 
2012 and to reform the National Association of Registered Agents and 
Brokers, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of title I, add the following:

     SEC. 1__. FLOOD MITIGATION METHODS FOR URBAN BUILDINGS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall issue 
     guidelines for property owners that--
       (1) provide alternative methods of mitigation, other than 
     building elevation, to reduce flood risk to urban residential 
     buildings that cannot be elevated due to their structural 
     characteristics, including--
       (A) types of building materials; and
       (B) types of floodproofing; and
       (2) inform property owners about how the implementation of 
     mitigation methods described in paragraph (1) may affect risk 
     premium rates for flood insurance coverage under the National 
     Flood Insurance Program.
       (b) Calculation of Risk Premium Rates.--In calculating the 
     risk premium rate charged for flood insurance for a property 
     under section 1308 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4015), the Administrator shall take into 
     account the implementation of any mitigation method 
     identified by the Administrator in the guidance issued under 
     subsection (a) of this section.
                                 ______
                                 
  SA 2709. Mr. MERKLEY submitted an amendment intended to be proposed 
by him to the bill S. 1926, to delay the implementation of certain 
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and 
to reform the National Association of Registered Agents and Brokers, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 110. LIMITATIONS ON FORCE-PLACED INSURANCE.

       Section 102(e) of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4012a(e)) is amended--
       (1) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Limitations on lenders and servicers.--
       ``(A) Payments from insurance companies.--An lender or 
     servicer, or an affiliate of a lender or servicer, may not 
     receive a commission or any other payment from an insurance 
     company in connection with securing business under paragraph 
     (2) from the insurance company.
       ``(B) Purchase from affiliated insurance companies.--
       ``(i) In general.--Except as provided in clause (ii), a 
     lender or servicer, or an affiliate of a lender or servicer, 
     that purchases insurance under paragraph (2) may not purchase 
     the insurance from an insurance company that is affiliated 
     with the lender or servicer.
       ``(ii) Exception.--Clause (i) shall not apply to the 
     purchase of insurance under paragraph (2) by a lender or 
     servicer, or an affiliate of a lender or servicer, that is a 
     bank, or a Federal credit union or State credit union (as 
     those terms are defined in section 101 of the Federal Credit 
     Union Act (12 U.S.C. 1752)), with assets of not more than 
     $1,000,000,000.''.

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