S.Amdt. 2364

1. Rewrites section 7201

   Replaces

   In S. 1932 · Placed on Calendar Senate

   Struck: SEC. 7201. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.

   Struck: (a) Flat-Rate Premiums.--

   Inserted: SEC. 7201. INCREASES IN PBGC PREMIUMS.

   [struck: (1) Single-employer plans.--]Section 4006(a)(3)(A)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)(i)) is amended to read as follows:

   "(i) in the case of a single-employer plan, an amount equal to--

   "(I) for plan years beginning after December 31, 1990, and before January 1, 2006, $19, or

   "(II) [struck: except as provided in subparagraph (F), ]for plan years beginning after December 31, 2005, [struck: $46.75][inserted: $30], plus the additional premium (if any) determined under subparagraph (E) for each individual who is a participant in such plan during the plan year;".

   Struck: (2) Multiemployer plans.--Section 4006(a)(3)(A) of such Act (29 U.S.C. 1306(a)(3)(A)) is amended--

   Struck: (A) in clause (iii), by--

   Struck: (i) inserting "and before January 1, 2006," after "Act of 1980,"; and

   Struck: (ii) striking the period at the end and inserting ", or"; and

   Show 33 more struck paragraphsShow less

   Struck: (B) by adding at the end the following:

   Struck: "(iv) in the case of a multiemployer plan an amount equal to the following for each individual who is a participant in such plan during the applicable plan year:

   Struck: "(I) $8.00 for plan years beginning in 2006.

   Struck: "(II) For plan years after December 31, 2006, the amount determined under subparagraph (G).

   Struck: (3) Indexing of flat-rate premiums.--

   Struck: (A) Single-employer premiums.--Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)), as amended by this Act, is amended by adding at the end the following:

   Struck: "(F) Indexing of single-employer flat-rate premiums.--

   Struck: "(i) In general.--In the case of any plan year beginning after 2006, the adjusted amount under clause (ii) shall be substituted for the dollar amount under clause (i)(II) of subparagraph (A), if such adjusted amount is greater than such dollar amount.

   Struck: "(ii) Adjusted amount.--The adjusted amount for the dollar amount in clause (i)(II) of subparagraph (A) for any plan year is the product derived by multiplying such dollar amount by the ratio of--

   Struck: "(I) the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 2 calendar years preceding the calendar year in which the plan year begins, to "(II) the national average wage index (as so defined) for 2004. If the amount determined under this clause is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.".

   Struck: (B) Multiemployer premiums--Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)), as amended by this Act, is amended by adding at the end the following:

   Struck: "(G) Indexing of multiemployer flat-rate premiums.--The amount determined under this subparagraph is the product derived by multiplying $8.00 by the ratio of--

   Struck: "(i) the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 2 calendar years preceding the calendar year in which the plan year begins, to "(ii) the national average wage index (as defined in subparagraph (F)) for 2004. If the amount determined under this clause is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.".

   Struck: (b) Premium Rate for Certain Terminated Single-employer Plans.-- Section 4006(a) of such Act (29 U.S.C. 1306(a)) is amended by adding at the end the following:

   Struck: "(7) Premium rate for certain terminated single-employer plans.--

   Struck: "(A) In general.--If there is a termination of a single-employer plan under clause (ii) or (iii) of section 4041(c)(2)(B) or section 4042, there shall be payable to the corporation, with respect to each applicable 12-month period, a premium at a rate equal to $1,250 multiplied by the number of individuals who were participants in the plan immediately before the termination date. Such premium shall be in addition to any other premium under this section.

   Struck: "(B) Special rule for plans terminated in bankruptcy reorganization.--Subparagraph (A) shall not apply to a single-employer plan terminated under section 4041(c)(2)(B)(ii) or under section 4042 during pendency of any bankruptcy reorganization proceeding under chapter 11 of title 11, United States Code, (or under any similar law of a State or political subdivision of a State) until the plan sponsor emerges from bankruptcy.

   Struck: "(C) Applicable 12-month period.--For purposes of subparagraph (A)--

   Struck: "(i) In general.--The term 'applicable 12- month period' means--

   Struck: "(I) the 12-month period beginning with the first month following the month in which the termination date occurs, and

   Struck: "(II) each of the first two 12- month periods immediately following the period described in subclause (I).

   Struck: "(ii) Plans terminated in bankruptcy reorganization.--In the case of a plan described under subparagraph (B), the 12-month period described in clause (i)(I) shall be the 12-month period beginning with the first month following the month which includes the date the plan sponsor emerges from bankruptcy.

   Struck: "(D) Coordination with section 4007.--For purposes of section 4007--

   Struck: "(i) premiums under this paragraph shall be due within 30 days after the beginning of any applicable 12-month period,

   Struck: "(ii) the fifth sentence of section 4007(a) shall not apply, and

   Struck: "(iii) the designated payor under section 4007(e)(1)(A) shall be the contributing sponsor immediately before the termination date.".

   Struck: (c) Conforming Amendment.--Section 4006(a)(3)(B) of such Act (29 U.S.C. 1306(a)(3)(B)) is amended by striking "subparagraph (A)(iii)" and inserting "clause (iii) or (iv) of subparagraph (A)".

   Struck: (d) Effective Dates.--

   Struck: (1) In general.--The amendments made by this section shall apply to plan years beginning after December 31, 2005.

   Struck: (2) Special rule for plans terminated in bankruptcy.--The amendment made by subsection (b) shall not apply to a termination of a single-employer plan that is terminated during the pendency of any bankruptcy reorganization proceeding under chapter 11 of title 11, United States Code (or under any similar law of a State or political subdivision of a State), if the proceeding is pursuant to a bankruptcy filing occurring before October 18, 2005.

   Struck: (3) Special rule if subsequent savings enacted.--The amendments made by this section shall not take effect if, after the date of enactment of this Act and before January 1, 2006, a Federal law is enacted which--

   Struck: (A) provides for decreases in Federal outlays which in the aggregate are not less than the decreases in Federal outlays by reason of the amendments made by this section; and

   Struck: (B) specifically provides that such decreases are to be in lieu of the decreases in Federal outlays by reason of the amendments made by this section.

   Original wording

   Strike section 7201 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed