| Printer-Friendly | Search

Dec 14, 2005

H.R. 2830 - Pension Protection Act of 2005

COMMITTEE ACTION: REPORTED BY VOICE VOTE on Wednesday, December 14, 2005.
FLOOR ACTION: ADOPTED BY THE YEAS AND NAYS 226-199 on Thursday, December 15, 2005.

MANAGERS: HASTINGS(WA)/MCGOVERN
109th Congress 
1st Session

H. RES. 602

[Report No. 109-346]

H.R. 2830 - PENSION PROTECTION ACT OF 2005



1. Closed rule.

2. Provides 90 minutes of debate in the House on the bill as amended equally divided among and controlled by the chairman and ranking minority member of the Committee on Education and the Workforce and the chairman and ranking minority member of the Committee on Ways and Means.

3. Waives all points of order against consideration of the bill.

4. In lieu of the amendments recommended by the Committees on Education and the Workforce and Ways and Means now printed in the bill, the amendment in the nature of a substitute printed in part A of the report of the Committee on Rules accompanying the resolution shall be considered as adopted.

5. Waives all points of order against the bill, as amended.

6. Provides one motion to recommit with or without instructions.

7. Provides that, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the bill to a time designated by the Speaker.

---------

RESOLUTION

Resolved, That upon the adoption of this resolution it shall be in order without intervention of any point of order to consider in the House the bill (H.R. 2830) to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to reform the pension funding rules, and for other purposes. The bill shall be considered as read. In lieu of the amendments recommended by the Committees on Education and the Workforce and Ways and Means now printed in the bill, the amendment in the nature of a substitute printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted. All points of order against the bill, as amended, are waived. The previous question shall be considered as ordered on the bill, as amended, to final passage without intervening motion except: (1) 90 minutes of debate equally divided among and controlled by the chairman and ranking minority member of the Committee on Education and the Workforce and the chairman and ranking minority member of the Committee on Ways and Means; and (2) one motion to recommit with or without instructions.

Sec. 2. During consideration of H.R. 2830 pursuant to this resolution, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the bill to a time designated by the Speaker.

* * * * *

PART - A
SUMMARY OF AMENDMENT IN THE NATURE OF A SUBSTITUTE PROPOSED TO BE CONSIDERED AS ADOPTED


Boehner/Thomas #5:
Manager's Amendment. Treats plant shut down benefits as plan amendments. As a result, shutdown benefit cannot be paid out if the plan is less than 80 percent funded unless the full amount of the shutdown benefit is paid for. Provides for a 5-year phase-in for the rule that requires plans to be 100 percent funded in order to avoid any benefit restrictions. Requires collectively bargained plans to use any portion of the plan's credit balance to increase plan assets in order to avoid the benefit restriction rules. Requires plans to fund for projected mortality improvements annually. Provides for employer surcharges and certain benefit cutbacks for plans that are severely underfunded. Imposes new penalties and excise taxes for failure to timely certify the funded status of a plan or comply with the contribution requirements of a plan. Waives the funding deficiency excise tax for severely underfunded plans provided that all interested parties are in compliance with the rehabilitation plan of improvement. Requires severely underfunded plans to implement annual standards for meeting the requirements of the rehabilitation plan of improvement. Grandfathers the interest rate used by plans that have existing or pending (as of 6/30/05) IRS waivers/amortization extensions. Makes conforming IRC changes for the Block Trading and a Correction Period for certain transactions. Requires plans to file a Form 5500 within 285 days after the end of the plan year. Modifies the general age discrimination rule for all defined benefit plans to provide that accrued benefits may be calculated as the balance of a hypothetical account or as the current value of the accumulated percentage of an employee's final average compensation. Permits the Treasury Department to approve certain types of plan offsets to defined benefit plans. Provides that the market rate for crediting benefits to participants can be a fixed or variable rate. Amends the withdrawal rules related to erroneous corrections. Provides preemption from state wage laws. Requires the Secretary of Labor to issue regulations on default investments that provide long-term capital appreciation. Directs the Secretary of Labor to issue regulations to clarify that the selection of an annuity as a form of distribution from the plan is subject to the current applicable fiduciary standards under ERISA. To keep participants invested in funds that meet their investment needs, the amendment requires plans to inform participants that if no contrary instruction is given, the portion of their accounts invested in the fund being eliminated will be "mapped" to a designated fund with similar investment or risk/reward characteristics. If, in fact, no instruction is given, fiduciary protection is provided for when investment options are changed. Ensures that health plans and employers are able to enforce their routine reimbursement provisions with greater certainty and recover, as equitable relief, third party payments under ERISA.

TEXT OF THE AMENDMENT

Boehner/Thomas #5