text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Defined Benefit Pension Plan Reform 
  Act of 2003''.
  
  SEC. 2. MULTIEMPLOYER PLAN EMERGENCY INVESTMENT LOSS RULE.
  
      (a) Amendment to the Internal Revenue Code of 1986.--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:
                      ``(F) Emergency investment loss method.--
                              ``(i) In general.--In lieu of amortizing 
                          net experience loss as prescribed in paragraph 
                          (2)(B)(iv), a multiemployer plan may elect to 
                          use the emergency investment loss method 
                          described in this subparagraph, starting with 
                          the first plan year in which there is an 
                          emergency investment loss.
                              ``(ii) Emergency investment loss.--An 
                          emergency investment loss for any plan year 
                          beginning on or after July 1, 1999, and ending 
                          before January 1, 2004, is the amount (if any) 
                          by which--
                                      ``(I) the fair market value of the 
                                  plan's assets as of the last day of the 
                                  plan year, is less than
                                      ``(II) the fair market value which 
                                  would have been determined if the 
                                  plan's earnings for the plan year had 
                                  been equal to the projected investment 
                                  return based on the actuarial interest 
                                  rate under paragraph (5)(A) for the 
                                  plan year, applied to the fair market 
                                  value of assets as of the beginning of 
                                  the year and noninvestment cash flows 
                                  during the year.
                              ``(iii) Amortization of emergency 
                          investment loss.--The funding standard account 
                          shall be charged with the amounts necessary to 
                          amortize in equal annual installments (until 
                          fully amortized) the plan's emergency 
                          investment loss over a period of 30 plan years.
                              ``(iv) Treatment of adjusted net actuarial 
                          experience.--If an election is in effect for 
                          any plan year described in clause (ii)--
                                      ``(I) any net experience gain 
                                  otherwise determined for such year 
                                  under paragraph (2)(B)(iv) shall be 
                                  increased by an amount equal to the 
                                  emergency investment loss for such 
                                  year, and
                                      ``(II) any net experience loss 
                                  otherwise determined for such year 
                                  under paragraph (3)(B)(ii) shall be 
                                  reduced by the emergency investment 
                                  loss for such year, except that if such 
                                  emergency investment loss exceeds such 
                                  net experience loss, the excess shall 
                                  be treated as a net experience gain for 
                                  such year for purposes of paragraph 
                                  (2)(B)(iv).''
      (b) Amendment to the Employee Retirement Income Security Act of 
  1974.--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:
      ``(F)(i) In lieu of amortizing net experience loss as prescribed in 
  paragraph (2)(B)(iv), a multiemployer plan may elect to use the 
  emergency investment loss method described in this subparagraph, 
  starting with the first plan year in which there is an emergency 
  investment loss.
      ``(ii) An emergency investment loss for any plan year beginning on 
  or after July 1, 1999, and ending before January 1, 2004, is the amount 
  (if any) by which--
              ``(I) the fair market value of the plan's assets as of the 
          last day of the plan year, is less than
              ``(II) the fair market value which would have been 
          determined if the plan's earnings for the plan year had been 
          equal to the projected investment return based on the actuarial 
          interest rate under paragraph (5)(A) for the plan year, applied 
          to the fair market value of assets as of the beginning of the 
          year and noninvestment cash flows during the year.
      ``(iii) The funding standard account shall be charged with the 
  amounts necessary to amortize in equal annual installments (until fully 
  amortized) the plan's emergency investment loss over a period of 30 
  plan years.
      ``(iv) If an election is in effect for any plan year described in 
  clause (ii)--
              ``(I) any net experience gain otherwise determined for such 
          year under paragraph (2)(B)(iv) shall be increased by an amount 
          equal to the emergency investment loss for such year, and
              ``(II) any net experience loss otherwise determined for 
          such year under paragraph (3)(B)(ii) shall be reduced by the 
  emergency investment loss for such year, except that if such emergency 
  investment loss exceeds such net experience loss, the excess shall be 
  treated as a net experience gain for such year for purposes of 
  paragraph (2)(B)(iv).''
      (c) Election Procedure.--
              (1) In general.--The Secretary of the Treasury shall 
          prescribe a procedure under which multiemployer plans that 
          elect to use the emergency investment loss method described in 
          section 412(b)(7)(F) of the Internal Revenue Code of 1986 and 
          section 302(b)(7)(F) of the Employee Retirement Income Security 
          Act of 1974 may do so either by starting the special 
          amortization periods in the actuarial valuations for each of 
          the affected plan years or by starting with a cumulative 
          emergency investment loss and adjusted net actuarial experience 
          (based on the outstanding balance of the experience gain bases 
          for the affected plan years, reduced by the cumulative 
          emergency investment loss) in the actuarial valuation for the 
          last plan year ending before January 1, 2004.
              (2) Filing period.--The procedures described in paragraph 
          (1) shall provide a period of not less than 210 days after the 
          date of enactment of this Act for multiemployer plans to file 
          Schedule Bs (relating to actuarial information under the plan) 
          to the Form 5500 Annual Reports for the plan years for which 
          the emergency investment loss method is elected, including 
          amended Schedule Bs for annual reports previously filed.
      (d) Effective Date.--The amendments made by this section shall 
  apply to years beginning after June 30, 1999.
  
  SEC. 3. MORTALITY TABLE ADJUSTMENT.
  
      (a) Amendment to the Internal Revenue Code of 1986.--Section 
  412(l)(7)(C) of the Internal Revenue Code of 1986 is amended by adding 
  at the end the following:
                              ``(iv) Separate mortality tables for blue-
                          collar and white-collar workers.--
                                      ``(I) In general.--Notwithstanding 
                                  clause (ii), in the case of plan years 
                                  beginning after December 31, 2003, the 
                                  Secretary shall establish separate 
                                  mortality tables for blue-collar 
                                  workers and white-collar workers which 
                                  may be used (in lieu of the tables 
                                  under clause (ii)) to determine current 
                                  liability under this subsection. For 
                                  this purpose, the Secretary shall take 
                                  into account the Society of Actuaries 
                                  RP-2000 Mortality Table, as adjusted to 
                                  take into account the collar adjustment 
                                  prescribed in such table to reflect the 
                                  workforce covered by the plan.
                                      ``(II) Classification of workers.--
                                  For purposes of this clause, 
                                  individuals shall be classified as 
                                  blue-collar or white-collar workers 
                                  under rules prescribed by the 
                                  Secretary. In prescribing such rules, 
                                  the Secretary shall treat professional 
                                  employees (within the meaning of 
                                  section 410) as white-collar workers.
                                      ``(III) Consistent use.--If an 
                                  employer elects to use the tables 
                                  prescribed under subclause (I) for any 
                                  plan established or maintained by the 
                                  employer, the employer shall use the 
                                  tables for all such plans other than a 
                                  plan for which use of the tables is 
                                  prohibited under regulations prescribed 
                                  by the Secretary.''.
      (b) Amendment to the Employee Retirement Income Security Act of 
  1974.--Section 302(d)(7)(C) of the Employee Retirement Income Security 
  Act of 1974 (29 U.S.C. 1082(d)(7)(C)) is amended by adding at the end 
  the following:
                              ``(iv) Separate mortality tables for blue-
                          collar and white-collar workers.--
                                      ``(I) In general.--Notwithstanding 
                                  clause (ii), in the case of plan years 
                                  beginning after December 31, 2003, the 
                                  Secretary of the Treasury shall 
                                  establish separate mortality tables for 
                                  blue-collar workers and white-collar 
                                  workers which may be used (in lieu of 
                                  the tables under clause (ii)) to 
                                  determine current liability under this 
                                  subsection. For this purpose, the 
                                  Secretary of the Treasury shall take 
                                  into account the Society of Actuaries 
                                  RP-2000 Mortality Table, as adjusted to 
                                  take into account the collar adjustment 
                                  prescribed in such table to reflect the 
                                  workforce covered by the plan.
                                      ``(II) Classification of workers.--
                                  For purposes of this clause, 
                                  individuals shall be classified as 
                                  blue-collar or white-collar workers 
                                  under rules prescribed by the Secretary 
                                  of the Treasury. In prescribing such 
                                  rules, the Secretary of the Treasury 
                                  shall treat professional employees 
                                  (within the meaning of section 410 of 
                                  the Internal Revenue Code of 1986) as 
                                  white-collar workers.
                                      ``(III) Consistent use.--If an 
                                  employer elects to use the tables 
                                  prescribed under subclause (I) for any 
                                  plan established or maintained by the 
                                  employer, the employer shall use the 
                                  tables for all such plans other than a 
                                  plan for which use of the tables is 
                                  prohibited under regulations prescribed 
                                  by the Secretary of the Treasury.''.
      (c) Effective Date.--The amendments made by this section shall be 
  effective as of the date of the enactment of this Act.
  
  SEC. 4. MODIFICATION OF FULL-FUNDING LIMITATION FOR PURPOSES OF 
                DEDUCTION LIMITS ON EMPLOYER PENSION CONTRIBUTIONS.
  
      (a) In General.--Section 404(a)(1)(A) of the Internal Revenue Code 
  of 1986 (relating to limitation on deductibility of employer 
  contributions) is amended by adding at the end the following: ``In 
  determining the full funding limitation for purposes of the preceding 
  sentence for any year beginning after December 31, 2003, the amount 
  determined under section 412(c)(7)(A)(i) shall in no event be treated 
  as being less than 130 percent of current liability (including the 
  expected increase in current liability due to benefits accruing during 
  the year).''
      (b) Effective Date.--The amendments made by this section shall 
  apply to years beginning after December 31, 2003.
  
  SEC. 5. REQUIRED NOTIFICATION OF PARTICIPANTS AND BENEFICIARIES OF PLAN 
                TERMINATIONS BY PENSION BENEFIT GUARANTY CORPORATION.
  
      (a) In General.--Section 4042(b) of the Employee Retirement Income 
  Security Act of 1974 (29 U.S.C. 1342(b)) is amended by adding at the 
  end the following:
      ``(4)(A) Not later than 30 days after the corporation notifies a 
  plan administrator under this subsection regarding the commencement of 
  proceedings to terminate a plan under this section, the corporation 
  shall provide notice of such proceedings to affected parties as 
  provided in this paragraph. The notice shall state that such 
  termination is intended, the proposed termination date, and the 
  procedure for such termination under this section.
      ``(B) Upon notice to the plan of the commencement of proceedings, 
  the plan administrator shall provide the corporation with a list of the 
  names and addresses of all participants and beneficiaries of the plan.
      ``(C) The corporation shall provide--
              ``(i) written notice to each affected party of the plan; 
          and
              ``(ii) notice in the 2 newspapers with the largest 
          circulation in the area of the majority of the affected 
          parties.''.
      (b) Effective Date.--The amendment made by this section shall apply 
  to proceedings commenced after the date of enactment of this Act.
target: Defined Benefit Pension Reform Plan of 2003 - Amends the Internal Revenue Code (the Code) and the Employee Retirement Income Security Act of 1974 (ERISA) concerning minimum funding standards for pension plans to: (1) permit a multiemployer plan to elect to use an emergency investment loss method (as defined), starting in the first plan year in which there is an emergency investment loss; and (2) establish separate mortality tables for blue-collar and white-collar workers which may be used in lieu of the current table.
  
  Amends the Code to modify the full-funding limitation for purposes of the deduction limits on employer pension contributions.
  
  Amends ERISA to require notification of participants and beneficiaries of plan terminations by the Pension Benefit Guaranty Corporation.
feat_title: A bill to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to ensure the adequate funding of pension plans, and for other purposes.