S.Amdt. 2250

TEXT OF AMENDMENTS

SA 2236. Mr. KYL proposed an amendment to amendment SA 2233 proposed
by Mr. Grassley (for himself, Mr. Baucus, Mr. Gregg, and Mr. Kennedy)
to the bill H.R. 3108, to amend the Employee Retirement Income Security
Act of 1974 and the Internal Revenue Code of 1986 to temporarily
replace the 30-year Treasury rate with a rate based on long-term
corporate bonds for certain pension plan funding requirements and other
provisions, and for other purposes; as follows:

At the end of section 3, insert:
(__) Restrictions on Application for Funding Waiver for
Employers Electing Alternative Deficit Reduction
Contribution.--An employer who makes an election under
section 412(l)(12) of the Internal Revenue Code of 1986 or
section 302(d)(12) of the Employee Retirement Income Security
Act of 1974 (as added by this section) with respect to a plan
for 2 plan years may not receive a funding waiver under
section 412(d) of such Code for any plan year beginning after
December 27, 2005, and before December 28, 2007.
______

SA 2237. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike sections 3, 4, and 5 and insert:

SEC. 3. ELECTION OF ALTERNATIVE DEFICIT REDUCTION
CONTRIBUTION.

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

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

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

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

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

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

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

``(D) Applicable plan year.--For purposes of this
paragraph--
``(i) In general.--The term `applicable plan year' means
any plan year beginning after December 27, 2003, and before
December 28, 2005, for which the employer elects the
application of this paragraph.

[[Page S254]]

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

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

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

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

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

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

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

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

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

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

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

SEC. 4. MULTIEMPLOYER PLAN FUNDING NOTICES.

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

[[Page S255]]

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

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

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

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

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

Notwithstanding the preceding sentence, a plan may elect to
have this subparagraph apply to net experience losses for
only 2 plan years beginning after June 30, 2002, and before
July 1, 2006.
``(ii) Restrictions on benefit increases.--An amendment
which increases the liabilities of the plan by reason of any
increase in benefits, any change in the accrual of benefits,
or any change in the rate at which benefits become
nonforfeitable under the plan shall not take effect for any
plan year in the hiatus period, unless--

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

[[Page S256]]

``(III) the plan amendment is otherwise described in
subparagraph (A) or (C) of subsection (f)(2).

``(iii) Collectively bargained increases in
contributions.--Clause (ii) shall not apply to an increase in
benefits for a group of participants resulting solely from a
collectively bargained increase in the contributions made on
their behalf, but only if the collective bargaining agreement
was in effect on the date of the enactment of this clause.
``(iv) Hiatus period defined.--For purposes of this
subparagraph, the term `hiatus period' means any period
during which the amortization of a net experience loss is
suspended by reason of this subparagraph.
``(v) Interest accrued during hiatus.--Interest accrued on
any net experience loss during a hiatus period shall be
charged to a reconciliation account and not to the funding
standard account.
``(vi) Election.--An election under this subparagraph shall
be filed with the Secretary of Labor within 30 days after the
beginning of the plan year to which the election applies (or,
if later, 30 days after the date of the enactment of this
subparagraph). The plan administrator of any multiemployer
plan that elects an amortization hiatus under this
subparagraph or section 302(b)(7)(F) of the Employee
Retirement Income Security Act of 1974 for any plan year must
provide to the Pension Benefit Guaranty Corporation the
actuarial information required by section 4010 of the
Employee Retirement Income Security Act of 1974 as if the
plan were subject to those requirements for that plan year
and the following 4 plan years. The Corporation may make
public asset, liability, and funded percentage information.''
(2) Qualification requirement.--Section 401(a) of such Code
is amended by inserting after paragraph (34) the following
new paragraph:
``(35) Benefit increases in certain multiemployer plans.--A
trust which is part of a plan shall not constitute a
qualified trust under this section if the plan adopts an
amendment during a hiatus period (within the meaning of
section 412(b)(7)(F)(iv)) which the plan is prohibited from
adopting by reason of section 412(b)(7)(F)(ii).''
SA 2238. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike section 3 and insert:

SEC. 3. ELECTION OF ALTERNATIVE DEFICIT REDUCTION
CONTRIBUTION.

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

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

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

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

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

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

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

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

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

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

``(D) Applicable plan year.--For purposes of this
paragraph--
``(i) In general.--The term `applicable plan year' means
any plan year beginning after December 27, 2003, and before
December 28, 2005, for which the employer elects the
application of this paragraph.
``(ii) Limitation on number of years which may be
elected.--An election may not be made under this paragraph
with respect to more than 2 plan years.
``(E) Notice requirements for plans electing alternative
deficit reduction contributions.--
``(i) In general.--If an employer elects an alternative
deficit reduction contribution

[[Page S257]]

under this paragraph and section 412(l)(12) of the Internal
Revenue Code of 1986 for any year, the employer shall
provide, within 30 days (120 days in the case of an employer
described in subparagraph (C)(ii)) of filing the election for
such year, written notice of the election to participants and
beneficiaries and to the Pension Benefit Guaranty
Corporation.
``(ii) Notice to participants and beneficiaries.--The
notice under clause (i) to participants and beneficiaries
shall include with respect to any election--

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

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

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

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

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

SA 2239. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 12, line 10 through page 13, line 6 and strike
page 16, line 24 through page 17, line 20.
______

SA 2240. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

SA 2241. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Starting on page 21, line 4, insert the following new
paragraph (e):
``(e) Election.--Each election under section 412(1)(12) of
the Internal Revenue Code of 1986 or section 302(d)(12) of
the Employee Retirement Income Security Act of 1974 (as added
by this section) shall be counted as an election of a funding
waiver for purposes of section 412(d)(1) of the Internal
Revenue Code of 1986.''
______

SA 2242. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a

[[Page S258]]

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

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

SA 2243. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Starting on page 20, line 10, insert at the end the
following subparagraph:
``(iv) If the employer is part of a controlled group
subject to section 4010 of the Employee Retirement Income
Security Act of 1074, the Pension Benefit Guaranty
Corporation may make public the assets, liabilities, and
funded percentage for that plan year and the following four
plan years for any plan maintained by the controlled group.''
______

SA 2244. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 13, lines 20 through 22, and insert:
``(E) Election.--An election under this paragraph shall be
made within 30 days after the beginning of the plan year to
which the election applies, or if later, within 30 days of
enactment, by filing with the Secretary in such manner as the
Secretary may prescribe.''
Strike page 20, lines 10 through 13, and insert:
``(F) Election.--An election under this paragraph shall be
made within 30 days after the beginning of the plan year to
which the election applies, or if later, within 30 days of
enactment, by filing with the Secretary in such manner as the
Secretary may prescribe.''
______

SA 2245. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike sections 4 and 5 and insert:

SEC. 4. MULTIEMPLOYER PLAN FUNDING NOTICES.

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

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

(a) Amendments to the Employee Retirement Income Security
Act of 1974.--
(1) In general.--Section 302(b)(7) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.1082(b)(7))
is amended by adding at the end the following new
subparagraph:
``(F)(i) If a multiemployer plan has a net experience loss
for any plan year beginning after June 30, 2002, and before
July 1, 2006--
``(I) the plan may elect to have the 15-year amortization
period under paragraph (2)(B)(iv) with respect to the loss
begin in any plan year selected by the plan from among the 3
immediately succeeding plan years, and
``(II) if the plan makes an election under subclause (I)
for any plan year, the net experience loss for the year
shall, for purposes of determining any charge to the funding
standard account, or interest, with respect to the loss, be
treated in the same manner as if it were a net experience
loss occurring in the year selected by the plan under
subclause (I) (without regard to any net experience loss or
gain otherwise determined for such year).
Notwithstanding the preceding sentence, a plan may elect to
have this subparagraph apply to net experience losses for
only 2 plan years beginning after June 30, 2002, and before
July 1, 2006.
``(ii) An amendment which increases the liabilities of the
plan by reason of any increase in benefits, any change in the
accrual of benefits, or any change in the rate at which
benefits become nonforfeitable under the plan shall not take
effect for any plan year in the hiatus period, unless--
``(I) the funded current liability percentage (as defined
in subsection (d)(8)(B), except that all gains and losses
shall be immediately recognized and assets shall be valued at
their fair market value) as of the end of the plan year is
projected (taking into account the effect of the amendment)
to be at least 90 percent,
``(II) the plan's actuary certifies that, due to an
increase in contribution rates, the normal cost attributable
to the benefit increase or other change is expected to be
fully funded (solely on account of increased contributions)
in the year following the year the increase or other change
takes effect, and any increase in the plan's accrued
liabilities attributable to the benefit increase or other
change is expected to be fully funded by the

[[Page S259]]

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

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

Notwithstanding the preceding sentence, a plan may elect to
have this subparagraph apply to net experience losses for
only 2 plan years beginning after June 30, 2002, and before
July 1, 2006.
``(ii) Restrictions on benefit increases.--An amendment
which increases the liabilities of the plan by reason of any
increase in benefits, any change in the accrual of benefits,
or any change in the rate at which benefits become
nonforfeitable under the plan shall not take effect for any
plan year in the hiatus period, unless--

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

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

SA 2246. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

______

SA 2247. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

______

SA 2248. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend

[[Page S260]]

the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

______

SA 2249. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

______

SA 2250. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 23, line 18 through line 19, and redesignate
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively.
______

SA 2251. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 24, line 7 through line 11 and insert:
``(c) Regulations and Model Notice.--The Secretary of Labor
may issue regulations (including a model notice) that
implement the provisions of this section. If such regulations
are not issued, the administrator of a defined benefit plan
which is a multiemployer plan shall comply with the
provisions of section 4011 of the Employee Retirement Income
Security Act of 1974 and the regulations thereunder in a
reasonable manner to fulfill the notice requirement under
this section.''
______

SA 2252. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 24, line 12 through line 14 and insert:
``(d) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31,
2003.''
______

SA 2253. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 25, line 16 through line 19 and insert:
``Notwithstanding the preceding sentence, a plan may elect to
have this subparagraph apply to net experience losses for
only 2 of the plan years beginning after June 30, 2002, and
before July 1, 2006.''
Strike page 29, line 14 through line 18 and insert:
``Notwithstanding the preceding sentence, a plan may elect to
have this subparagraph apply to net experience losses for
only 2 of the plan years beginning after June 30, 2002, and
before July 1, 2006.''
______

SA 2254. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 26, line 1 through line 5 and insert:
``(I) the funded current liability percentage (as defined
in subsection (d)(8)(B) except that all gains and losses
shall be immediately recognized in full and assets shall be
valued at fair market value) as of the end of the plan year
is projected (taking into account the effect of the
amendment) to be at least 90 percent,''
Strike page 30, line 3 through line 8 and insert:
``(I) the funded current liability percentage (as defined
in subsection (1)(8)(B) except that all gains and losses
shall be immediately recognized in full and assets shall be
valued at fair market value) as of the end of the plan year
is projected (taking into account the effect of the
amendment) to be at least 90 percent,''
______

SA 2255. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 26, line 6 through 16 and insert:
``(II) if the funded current liability percentage is at
least 75 percent and the plan's actuary certifies that, due
to an increase in contribution rates, the normal cost
attributable to the benefit increase or other change is
expected to be fully funded solely on account of increased
contributions in the year following the year the increase or
other change takes effect, and any increase in the plan's
accrued liabilities attributable to the benefit increase or
other change is expected to be fully funded solely on account
of increased contributions by the end of the third plan year
following the end of the last hiatus period of the plan, or''
Strike page 30, line 9 through line 22 and insert:
``(II) if the funded current liability percentage is at
least 75 percent and the plan's actuary certifies that, due
to an increase in contribution rates, the normal cost
attributable to the benefit increase or other change is
expected to be fully funded solely on account of increased
contributions in the year following the year the increase or
other change takes effect, and any increase in the plan's
accrued liabilities attributable to the benefit increase or
other change is expected to be fully funded solely on account
of increased contributions by the end of the third plan year
following the end of the last hiatus period of the plan, or''
______

SA 2256. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 26, line 20 through line 23 and insert:
``(iii) Clause (ii) shall not apply to an increase in
benefits for a group of participants resulting solely from a
collectively bargained increase in the contributions made on
their behalf required by a collective bargaining agreement
which is in effect on the date of enactment of this
subparagraph.''

[[Page S261]]

Strike page 31, line 1 through line 6 and insert:
``(iii) Clause (ii) shall not apply to an increase in
benefits for a group of participants resulting solely from a
collectively bargained increase in the contributions made on
their behalf required by a collective bargaining agreement
which is in effect on the date of enactment of this
subparagraph.''
______

SA 2257. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

Strike page 26, line 20 through line 23 and insert:
``(iii) Clause (ii) shall not apply to an increase in
benefits for a group of participants resulting solely from a
collectively bargained increase in the contributions made on
their behalf but in no case shall the rate of increase in
such benefits exceed the change in the consumer price index
for the preceding year in the case of any collective
bargaining agreement which was not in effect on the date of
enactment of this subparagraph.''
Strike page 31, line 1 through line 6 and insert:
``(iii) Clause (ii) shall not apply to an increase in
benefits for a group of participants resulting solely from a
collectively bargained increase in the contributions made on
their behalf but in no case shall the rate of increase in
such benefits exceed the change in the consumer price index
for the preceding year in the case of any collective
bargaining agreement which was not in effect on the date of
enactment of this subparagraph.''
______

SA 2258. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

SA 2259. Mr. FITZGERALD submitted an amendment intended to be
proposed to amendment SA 2233 proposed by Mr. Grassley (for himself,
Mr. Baucus, Mr. Gregg, and Mr. Kennedy) to the bill H.R. 3108, to amend
the Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code of 1986 to temporarily replace the 30-year Treasury rate
with a rate based on long-term corporate bonds for certain pension plan
funding requirements and other provisions, and for other purposes;
which was ordered to lie on the table; as follows:

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

SA 2260. Mr. SPECTER submitted an amendment intended to be proposed
by him to the bill H.R. 3108, to amend the Employee Retirement Income
Security Act of 1974 and the Internal Revenue Code of 1986 to
temporarily replace the 30-year Treasury rate with a rate based on
long-term corporate bonds for certain pension plan funding requirements
and other provisions, and for other purposes; which was ordered to lie
on the table; as follows:

At the appropriate place, insert:

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

(a) In General.--Notwithstanding any provision of the
Internal Revenue Code of 1986 or the Employee Retirement
Income Security Act of 1974, the provisions of subsection (b)
shall apply to any defined benefit plan that was--
(1) maintained by a commercial passenger air carrier,
(2) maintained for the benefit of such carrier's employees
pursuant to a collective bargaining agreement, and
(3) terminated during the calendar year 2003 while the
employer was in bankruptcy under chapter 11 of title 11 of
the United States Code.
(b) Restoration of Plan.--The Pension Benefit Guaranty
Corporation shall restore any plan described in subsection
(a), pursuant to the terms described in subsection (g), and
the control of the plan's assets and liabilities shall be
transferred to the employer. The date of restoration shall be
not later than 60 days after the date the terms of the plan
are determined pursuant to subsection (g).
(c) Exclusion of Expected Increase in Current Liability.--
In applying section 412(l)(1)(A)(i) of such Code and section
302(d)(1)(A)(i) of such Act with respect to a plan restored
under subsection (b), any expected increase in current
liability due to benefits accruing during each plan year as
described in section 412(1)(2)(C) of such Code and section
302(d)(2)(C) of such Act shall be excluded.
(d) Amortization of Unfunded Amounts Under Restoration
Payment Schedule.--
(1) Post-restoration initial unfunded accrued liability.--
In the case of a plan restored under subsection (b)--
(A) the initial post-restoration valuation date for a plan
described in subsection (a) shall be January 1 of the
calendar year following the date of restoration,
(B) the initial restoration amortization base for a plan
described in subsection (a) shall be an amount equal to the
excess of--
(i) the accrued benefit liabilities returned by the
Corporation, over
(ii) the market value of plan assets returned by the
Corporation, and
(C) the initial restoration amortization base shall be
amortized in level annual installments over a period
determined pursuant to subsection (g) but not to exceed 30
years after the initial post-restoration valuation date, and
the funding standard account of the plan under section 412 of
such Code and section 302 of such Act shall be charged with
such installments.
(2) Unfunded section 412(l) restoration liability.--For
purposes of section 412 of such Code and section 302 of such
Act, in the case of a plan restored under subsection (b)--
(A) the initial post-restoration valuation date for a plan
described in subsection (a) shall be January 1 of the
calendar year following the date of restoration,
(B) the unfunded section 412(l) restoration liability shall
be an amount equal to the excess of--
(i) the current liability returned by the Corporation, over
(ii) the market value of plan assets returned by the
Corporation, and
(C) the unfunded section 412(l) restoration liability
amount shall be equal to the unfunded section 412(l)
restoration liability amortized in level annual installments
over a period determined pursuant to subsection (g) but not
to exceed 30 years after the initial post-restoration
valuation date.
(3) Rules of special application.--In applying the 30-year
amortization described in paragraph (1)(C) or (2)(C)--
(A) the assumed interest rate for purposes of paragraph
(1)(C) shall be the valuation interest rate used to determine
the accrued liability under section 412(c) of such Code and
section 302(c) of such Act,
(B) the assumed interest rate for purposes of paragraph
(2)(C) shall be the interest rate used to determine current
liability as of the initial post-restoration valuation date
under section 412(l) of such Code and section 302(d) of such
Act,
(C) the actuarial value of assets as of the initial post-
restoration valuation date shall be reset to the market value
of assets with a 5-year phase-in of unexpected investment
gains or losses on a prospective basis, and
(D) for plans using the frozen initial liability (FIL)
funding method in accordance with section 412(c) of such Code
and section 302(c) of such Act, the initial unfunded
liability used to determine normal cost shall be reset to the
initial restoration amortization base.
(e) Quarterly Contributions.--The requirements of section
412(m) of such Code

[[Page S262]]

and section 302(e) of such Act shall not apply to a plan
restored under subsection (b) until the plan year beginning
on the initial post-restoration valuation date. The required
annual payment for that year shall be the lesser of--
(1) the amount determined under section 412(m)(4)(B)(i) of
such Code and section 302(e)(4)(B)(i) of such Act, or
(2) 100 percent of the amount required to be contributed
under the plan for the plan year beginning January 1, 2003,
and ending on the date of plan termination.
(f) Resetting of Funding Standard Account Balances.--In the
case of a plan restored under subsection (b), any accumulated
funding deficiency or credit balance in the funding standard
account under section 412 of such Code or section 302 of such
Act shall be set equal to zero as of the initial post-
restoration valuation date.
(g) Terms of Restored Plan.--
(1) In general.--The terms of a plan which is restored
pursuant to subsection (b) shall be determined by mutual
agreement of the employer and the collective bargaining
representative of employees covered by the plan. If such
parties are unable to reach mutual agreement on such terms,
then the terms of the restored plan will be determined by a
neutral arbitrator. The neutral arbitrator will be selected
by the parties within 7 days after the earlier of the date
the parties reach an impasse or 60 days after the date of the
enactment of this Act. The neutral arbitrator will be
selected by the parties from a panel of neutrals provided by
the National Mediation Board. The neutral arbitrator will
render his or her determination not later than 120 days after
the date of the enactment of this Act. Such determination
shall be final and binding on the parties.
(2) Specific terms.--The terms of the restored plan are
subject to the following:
(A) Benefits under the restored plan for any participant or
group of participants may not be greater than, but may be
less than, those under the plan prior to its termination, and
forms of distribution under the restored plan for any
participant or group of participants may exclude forms
available under the plan prior to its termination, and any
such reductions in benefits or forms of distribution shall be
deemed to comply with section 411(d)(6) of such Code and
section 204(g) of such Act.
(B) For any participant, benefits under the restored plan
shall be offset by the value of contributions made on behalf
of such participant to any defined contribution pension plan
established by the parties in conjunction with the
termination of the restored plan.
(C) The amortization periods for the initial restoration
amortization base and the unfunded section 412(l) restoration
liability shall not exceed 30 years.
(D) The minimum required cost of the restored plan shall
not be less than the greater of--
(i) the projected cost of any defined contribution pension
plan established in conjunction with the termination of the
restored plan, or
(ii) the amount allowed as costs under the employer's
original plan of reorganization for all of the employer's
retirement plans minus the minimum required cost determined
as of the plan restoration date of all of the employer's
retirement plans excluding the restored plan.
(h) PBGC Liability Limited.--In the case of any plan which
is described in subsection (a), which is restored pursuant to
subsection (b), and which subsequently terminates with a date
of plan termination before the end of the fifth calendar year
after the date of restoration, section 4022 of the Employee
Retirement Income Security Act of 1974 shall be applied as if
the plan had been amended to provide that participants would
receive no credit for benefit accrual purposes under the plan
for service on and after the first day of the plan year
beginning after the date of the enactment of this Act.
(i) Effective Date.--This section shall apply to plan years
beginning after December 31, 2002.
______

SA 2261. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill H.R. 3108, to amend the Employee Retirement Income
Security Act of 1974 and the Internal Revenue Code of 1986 to
temporarily replace the 30-year Treasury rate with a rate based on
long-term corporate bonds for certain pension plan funding requirements
and other provisions, and for other purposes; which was ordered to lie
on the table; as follows:

At the end, add:

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

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

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

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

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

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

____________________