108th CONGRESS
1st Session
S. 1492
To amend the Employee Retirement Income Security Act of 1974, the
Internal Revenue Code of 1986, and the Labor Management Relations Act, 1947
to provide special rules for Teamster plans relating to termination and funding.
IN THE SENATE OF THE UNITED STATES
July 30 (legislative day, JULY 21), 2003
Mr. CHAMBLISS introduced the following bill; which was read twice and referred
to the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Employee Retirement Income Security Act of 1974, the
Internal Revenue Code of 1986, and the Labor Management Relations Act, 1947
to provide special rules for Teamster plans relating to termination and funding.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Multiemployer Pension Security Act of 2003'.
SEC. 2. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
RELATING TO TERMINATION INSURANCE PROGRAM.
(a) TEAMSTER PLAN DEFINED- Section 4001(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1301(a)) is amended--
(1) in paragraph (21), by striking the period at the end and inserting `;
and'; and
(2) by adding at the end the following new paragraph:
`(22) `teamster plan' means a plan--
`(A) to which more than one employer is required to contribute,
`(B) which is maintained pursuant to one or more collective bargaining
agreements between The International Brotherhood of Teamsters, Chauffeurs,
Warehousemen and Helpers of America or its locals and more than one employer,
and
`(C) which satisfies such other requirements as the Secretary of Labor
may prescribe by regulation.'.
(b) MODIFICATION OF LIABILITY PROVISIONS-
(1) AMOUNTS PAYABLE BY THE CORPORATION- Section 4061 of such Act (29 U.S.C.
1361) is amended by striking `subtitle B' and inserting `subtitles B and
G' in the first sentence thereof and inserting `or subtitle G' after `4022A'
in the third sentence thereof.
(2) LIABILITY UNDER DISTRESS TERMINATION OR A TERMINATION BY THE CORPORATION-
Section 4062 of such Act (29 U.S.C. 1362) is amended by inserting `or subtitle
G' after `4041(c)' in subsection (a) thereof.
(c) MODIFICATION OF ENFORCEMENT PROVISIONS- Section 4070 of such Act (29 U.S.C.
1370) is amended--
(1) by inserting `AND TEAMSTER PLANS' after `SINGLE-EMPLOYER PLANS' in the
title thereof;
(2) by inserting at the end of subsection (a) the following flush sentence:
`A plan fiduciary, contributing sponsor, member of a contributing sponsor's
controlled group, participant, or beneficiary who is adversely affected by
the act or omission of any party (other than the corporation) under subtitle
G with respect to a teamster plan, or an employee organization which represents
such a plan participant or beneficiary for purposes of collective bargaining,
may bring an action for appropriate legal or equitable relief, or both.';
(3) by inserting in each of subsections (a) and (b) `or a teamster plan'
after `single-employer plan' each time it appears in each such subsection;
and
(4) by inserting `, and in the case of a teamster plan, where the defendant
does business' at the end of the second sentence of subsection (c).
(d) SPECIAL PROVISIONS FOR TEAMSTER PLANS-
(1) IN GENERAL- Title IV of such Act (29 U.S.C. 1301 et seq.) is amended
by adding at the end the following new subtitle:
`Subtitle G--Special Provisions for Teamster Plans
`SEC. 4501. TREATMENT OF TEAMSTER PLANS.
`(a) GENERAL RULE- For purposes of this title, a teamster plan shall not be
treated as a multiemployer plan, and each employer that has an obligation
to contribute to a teamster plan shall be treated as a contributing sponsor
maintaining a separate single-employer plan, as provided in this subtitle.
`(b) PARTITION OF LIABILITIES-
`(1) IN GENERAL- As of the first day of the first plan year for which this
subtitle is effective, the transition liabilities of each teamster plan
shall be allocated among those persons that are, as of such date, the contributing
employers of the plan, in accordance with this subsection.
`(2) TRANSITION LIABILITIES- For purposes of this subtitle, `transition
liabilities' means the sum of--
`(A) the accrued liability for the benefits under the plan (as a whole,
as if such plan were treated as a single multiemployer plan rather than
a collection of single-employer plans but taking into account the requirements
of section 308) attributable as of the first day of the first plan year
for which this subtitle is effective to participants who, as of such date,
are not employed in credited service for any employer under such plan,
and
`(B) the accrued liability for the benefits under the plan (as a whole,
as if such plan were treated as a single multiemployer plan rather than
a collection of single-employer plans but taking into account the requirements
of section 308) attributable, as of the first day of the first plan year
for which this subtitle is effective, to the credited service of participants
(other than participants described in (A)) with an employer
that, as of such date, does not have an obligation to contribute to the teamster
plan.
`(3) METHOD OF ALLOCATION-
`(A) Transition liabilities shall be allocated under paragraph (1) with
respect to each teamster plan among those employers who have an obligation
to make contributions to such plan as of the first day of the first plan
year for which this subtitle is effective.
`(B) Each employer's share of the transition liabilities shall equal the
product derived by multiplying--
`(i) the transition liabilities of the plan (as a whole, as if such
plan were treated as a single multiemployer plan rather than a collection
of single-employer plans, but taking into account the requirements of
section 308), by
`(ii) a percentage determined as of the first day of the first plan
year for which this subtitle is effective by dividing--
`(I) the sum of the contributions required to be made under such plan
by the employer for the 5 preceding plan years, by
`(II) the sum of the contributions required to be made by all such
employers for the 5 preceding plan years.
`(4) ANTICIPATION OF BENEFIT INCREASES- For purposes of this subsection,
in determining accrued liability, the funding method of a plan shall anticipate
benefit increases scheduled to take effect during the term of the collective
bargaining agreement or agreements applicable to the plan.
`(c) PARTITION OF ASSETS-
`(1) IN GENERAL- As of the first day of the first plan year for which this
subtitle is effective, the assets of each teamster plan shall be allocated
among those persons who are, as of such date, the contributing employers
of the plan, in accordance with this subsection.
`(2) METHOD OF ALLOCATION- The assets of the teamster plan shall be allocated,
based on fair market value as of the first day of the first plan year for
which this subtitle is effective, among those employers who have, as of
such date, an obligation to contribute to the plan. The portion allocated
to each such employer shall be equal to the product derived by multiplying--
`(A) the funded percentage for the teamster plan, by
`(B) the employer's share of the accrued liability for the plan (as a
whole, as if such plan were treated as a single multiemployer plan rather
than a collection of single-employer plans but taking into account the
requirements of section 308), as of such date.
`(3) FUNDED PERCENTAGE- For purposes of this subsection, `funded percentage',
in connection with a plan, means the percentage obtained by dividing--
`(A) the fair market value of plan assets (as a whole, as if such plan
were treated as a single multiemployer plan rather than a collection of
single-employer plans but taking into account the requirements of section
308), including receivables, as of the first day of the first plan year
for which this subtitle is effective, by
`(B) the accrued liability for the plan (as a whole, as if such plan were
treated as a single multiemployer plan rather than a collection of single-employer
plans but taking into account the requirements of section 308), as of
such date.
`(4) INVESTMENT OF PLAN ASSETS- The assets of a teamster plan shall be invested
by the trustees as one master trust and each contributing employer's share
of the assets of the plan shall be adjusted annually according to master
trust accounting principles for the employer's plan contributions, benefit
payments with respect to its ongoing liability and transition liability
(if any), and share of investment returns and administrative expenses.
`(5) ANTICIPATION OF BENEFIT INCREASES- For purposes of this subsection,
in determining accrued liability, the funding method of a plan shall anticipate
benefit increases scheduled to take effect during the term of the collective
bargaining agreement(s) applicable to the plan.
`(d) SINGLE-EMPLOYER PLAN BENEFITS GUARANTEED- Notwithstanding any limitations
otherwise applicable under section 4022(b), the corporation shall guarantee
100 percent of the transition liabilities of each teamster plan.
`(1) IN GENERAL- For purposes of section 4006--
`(A) the premium rates charged by the corporation for teamster plans shall
be the same as the premium rates charged by the corporation for single-employer
plans, and
`(B) each employer that has an obligation to contribute to a teamster
plan shall be responsible for paying the premiums attributable to the
single-employer plan the employer is treated as maintaining pursuant to
this subtitle.
`(2) PHASE-IN OF ADDITIONAL PREMIUM- The amount of the additional premium
determined under section 4006(a)(3)(E) with respect to a teamster plan shall
be phased in over 10 plan years, beginning with the first plan year for
which this subtitle is effective, so that the additional premium shall take
effect during the 10-year period in annual increments taking effect for
each year, each of which is equal to 10 percent of the full increase that
would otherwise apply for such plan year, resulting in application of the
full additional premium effective with the final plan year in such period
and each plan year thereafter.
`(3) CONTRIBUTION OF PREMIUMS TO TEAMSTER PLAN- The corporation may allow
an employer to contribute all or part of the additional premium determined
under section 4006(a)(3)(E) directly to the teamster plan, in lieu of payment
to the corporation, to the extent that the corporation determines in its
discretion that such contribution would be in the best interests of participants
and beneficiaries.
`(1) IN GENERAL- An employer that has an obligation to contribute to a teamster
plan may terminate its participation in such plan in either a standard termination
or a distress termination, as provided in this subsection.
`(2) STANDARD TERMINATION- An employer that has an obligation to contribute
to a teamster plan may terminate its participation in such plan in a standard
termination by following procedures established by the corporation similar
to those that apply to a plan administrator in a standard termination of
a single-employer plan under section 4041. For purposes of this paragraph,
the employer shall be deemed to have satisfied its obligations to the teamster
plan if--
`(A) the employer obtains an irrevocable commitment from an insurer satisfactory
to the corporation to pay its benefit liabilities under such plan, or
`(B) the corporation agrees to assume the employer's obligation to contribute
to the plan and make contributions under the teamster plan pursuant to
such terms and conditions as shall be satisfactory to the corporation
and the teamster plan.
`(3) DISTRESS TERMINATION- An employer that has an obligation to contribute
to a teamster plan may terminate its participation in such plan in a distress
termination by following procedures established by the corporation similar
to those that apply to a plan administrator in a distress termination of
a single-employer plan under section 4041, including meeting the necessary
distress criteria under principles similar to those described in section
4041(c)(2)(B).
`(4) APPLICATION OF CERTAIN TERMINATION PROVISIONS- Upon an employer's termination
of its participation in a teamster plan in either a standard termination
or a distress termination, sections 4044, 4045, 4046, and 4050 shall apply
to the plan administrator of such plan in a manner consistent with the treatment
of such employer as a contributing sponsor of a single-employer plan under
this subtitle. The corporation may institute termination proceedings against
a teamster plan or an employer's participation in a teamster plan under
section 4042, and the provisions of such section shall be applied to such
termination proceedings in a manner consistent with the treatment of the
teamster plan as a collection of single-employer plans.
`(5) CONTRIBUTION OF ASSETS REMAINING AFTER STANDARD TERMINATION TO LIABILITIES
OF OTHER CONTRIBUTING EMPLOYERS- Any assets that remain allocated under
a teamster plan to an employer after the termination of the employer's participation
in the plan in a standard termination under paragraph (2) shall be applied
on a pro rata basis toward satisfaction of the benefit liabilities of the
remaining employers that contribute to the teamster plan based on such liabilities.
`(g) OBLIGATION TO FURNISH INFORMATION- The trustees of a teamster plan shall
furnish to each employer that has an obligation to contribute to such plan,
within 30 days of an employer's written request, such reports, records, documents,
or other information as the employer reasonably determines are necessary to
enable the employer to determine the liabilities and assets of the teamster
plan attributable to such employer and to comply with such employer's funding
obligations under section 308. The trustees shall be personally liable to
an employer for any failure to furnish such information required to be furnished
under this subsection and may in the court's discretion be liable to such
employer in the amount of up to $100 a day from the date of such failure,
and the court may in its discretion order such other relief as it deems proper.
In any action under this subsection, the court in its discretion may allow
a reasonable attorney's fee and costs of action to either party.'.
(2) CLERICAL AMENDMENT- The table of contents in section 1 of such Act is
amended--
(A) by amending the item relating to section 4070 to read as follows:
`Sec. 4070. Enforcement authority relating to terminations of single-employer
plans and teamster plans.'.
(B) by adding at the end the following new items:
`Subtitle G--Special Provisions for Teamster Plans
`Sec. 4501. Treatment of teamster plans.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to plan
years beginning after December 31, 2003.
SEC. 3. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT RELATING
TO FUNDING REQUIREMENTS.
(a) NOTICE REQUIREMENT RELATING TO FAILURE TO MEET MINIMUM FUNDING STANDARD-
Section 101(d) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1021(d)) is amended by adding at the end the following new paragraph:
`(4) TEAMSTER PLANS- For purposes of this subsection, effective as of the
funding effective date (as defined in section 308(b)(11)), a teamster plan
(as defined in section 4001(a)(22)) shall not be treated as a multiemployer
plan, and each employer that has an obligation to contribute to a teamster
plan shall be treated as an employer maintaining a separate single-employer
plan, as provided in section 308.'.
(b) RULE RELATING TO PROHIBITION ON BENEFIT INCREASES WHILE SPONSOR IN BANKRUPTCY-
Section 204(i) of such Act (29 U.S.C. 1054(i)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new paragraph:
`(4) SPECIAL RULE FOR TEAMSTER PLANS- For purposes of this subsection, a
teamster plan (as defined in section 4001(a)(22)) shall not be treated as
a multiemployer plan. This subsection shall be applied separately with respect
to each employer that has an obligation to contribute to a teamster plan,
and the funded current liability percentage for purposes of paragraph (3)
shall be determined in accordance with section 308.'.
(c) SPECIAL FUNDING RULES FOR TEAMSTER PLANS-
(1) IN GENERAL- Part 3 of subtitle B of title I of such Act is amended--
(A) by redesignating section 308 (29 U.S.C. 1086) as section 309; and
(B) by inserting after section 307 (29 U.S.C. 1085b) the following new
section:
`SEC. 308. TEAMSTER PLANS.
`(a) IN GENERAL- For purposes of this part other than section 302(d), a teamster
plan within the meaning of section 4001(a)(22) shall not be treated as a multiemployer
plan, and each employer that has an obligation to contribute to a teamster
plan shall be treated as a contributing sponsor maintaining a single-employer
plan, subject to the special rules of subsection (b).
`(1) FUNDING STANDARD ACCOUNT- A funding standard account shall be established
and maintained for each employer that has an obligation to contribute to
a teamster plan. In determining the funding standard account under section
302(b) for each such employer--
`(A) subsections (b)(2)(B)(i) and (b)(2)(B)(ii) of section 302 shall not
apply;
`(B) in the case of a teamster plan in effect on the first day of the
first plan year for which this section is effective, the funding standard
account shall be charged with--
`(i) the amount necessary to amortize in equal annual installments (until
fully amortized) the employer's unfunded past service liability over
a period of 30 plan years, and
`(ii) the amount necessary to amortize over a period of 10 plan years
in equal annual installments (until fully amortized) the credit determined
under section 308(b)(1)(C)(ii) for the immediately preceding plan year;
and
`(C) in the case of a teamster plan in effect on the first day of the
first plan year for which this section is effective, the funding standard
account shall be credited with--
`(i) the amount necessary to amortize in equal annual installments (until
fully amortized) the excess (if any) of the employer's initial market
value of assets over the employer's teamster plan accrued liability
determined as of the first day of the first plan year for which this
section is effective, over a period of 30 plan years, and
`(ii) for an employer who has made its negotiated contribution for a
plan year beginning after December 31, 2003, and before the funding
effective date, the excess (if any) of--
`(I) the minimum funding requirement determined under this section
for such plan year, over
`(II) the actual contribution made to the plan for any such plan year.
`(2) VALUATION OF ASSETS- For purposes of section 302(c)(2)(A), the actuarial
value of assets of a teamster plan as of the first day of the first plan
year for which this section is effective shall be the fair market value
of such assets as of such date. The value of the assets attributable to
each employer shall be adjusted annually according to principles of master
trust accounting for the employer's plan contributions, investment income
(and loss), the employer's benefit payments with respect to its ongoing
liability and transition liability (if any), and the employer's share of
administrative expenses. Prospective investment experience may be reflected
in accordance with section 302(c)(2) or any applicable regulations issued
by the Secretary of the Treasury.
`(3) ELECTION WITH RESPECT TO BONDS- The special election described in section
302(c)(2)(B) shall not apply.
`(4) CERTAIN RETROACTIVE PLAN AMENDMENTS- Notwithstanding any other provision
of this section, a teamster plan shall be treated as a multiemployer plan
for purposes of section 302(c)(8)(A).
`(5) BENEFITS MAY NOT BE INCREASED UNLESS TEAMSTER PLAN IS SUFFICIENTLY
FUNDED- In addition to the requirements of section 304(b)(1), no amendment
of a teamster plan which increases the liabilities of the plan with respect
to an employer 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 and no increase in benefits
attributable to an existing provision of a teamster plan (other than an increase
that results solely from an increase in a participant's compensation, age
or service or other similar factor), including an increase in benefits attributable
to an increase in the negotiated contribution, shall take effect unless at
the time such increase otherwise would be effective--
`(A) the percentage determined by dividing--
`(i) the lesser of the fair market value of the assets and the actuarial
value of the assets attributable to the employer for the plan year in
which the increase otherwise would be effective, by
`(ii) the employer's teamster plan current liability (determined using
the highest rate of interest which is allowable for the plan year under
section 302(d)(7)(C)) for the plan year in which the increase otherwise
would be effective,
is at least 90 percent, and
`(B) the percentage determined by dividing--
`(i) the amount described in subparagraph (A)(i), by
`(I) the amount described in subparagraph (A)(ii), and
`(II) the increase in the present value of future service benefits
(taking into account the amendment or other circumstance resulting
in such increase), determined using the highest rate of interest which
is allowable for the plan year under section 302(d)(7)(C) and the
mortality assumptions required under section 302(d)(7)(C), for the
plan year in which the increase otherwise would be effective,
`(6) ADDITIONAL FUNDING REQUIREMENTS FOR TEAMSTER PLANS-
`(A) For any plan year beginning on or after January 1, 2004, and before
January 1, 2034, the amount charged to the funding standard account for
the plan year shall be increased by the amount which, after taking into
account charges and credits under section 302(b), is necessary to increase
the funded current liability percentage at the end of the plan year (taking
into account the expected change in current liability due to benefits
and interest accruing during the plan year, expected disbursements during
the plan year, and the change in the market value of assets due to interest
and expected disbursements during the plan year) for the plan year to
a percentage equal to the sum of--
`(i) the funded current liability percentage at the beginning of the
plan year, and
`(ii) the lesser of 4 percent or the percentage determined by dividing--
`(I) the excess of 90 percent over the funded current liability percentage
as of the beginning of the plan year, by
`(II) 30 minus the number of plan years completed since the last plan
year beginning before January 1, 2004.
`(B) For any plan year beginning on or after January 1, 2034, the amount
charged to the funding standard account for the plan year shall be increased
by the amount which, after taking into account charges and credits under
section 302(b), is necessary to increase the funded current liability
percentage at the end of the plan year (taking into account the expected
change in current liability due to benefits and interest accruing during
the plan year, expected disbursements during the plan year, and the change
in the market value of assets due to interest and expected disbursements
during the plan year) for the plan year to the lesser of--
`(ii) the sum of the funded current liability percentage at the beginning
of the plan year and 4 percent.
`(C) The term `funded current liability percentage' means, with respect
to any employer for any plan year, the percentage which--
`(i) the lesser of the fair market value of the assets and the actuarial
value of the assets attributable to the employer for the plan year,
is of
`(ii) the employer's teamster plan current liability.
`(7) SPECIAL RULES FOR SMALL TEAMSTER PLANS-
`(A) Paragraph (6) shall not apply to any teamster plan for any plan year
if on each day during the preceding plan year such plan had no more than
100 participants.
`(B) In the case of a teamster plan to which subparagraph (A) does not
apply and which on each day during the preceding plan year had no more
than 150 participants, the amount of the increase under paragraph (6)
for such plan year shall be equal to the product of--
`(i) such increase determined without regard to this subparagraph, multiplied
by
`(ii) 2 percent for the highest number of participants in excess of
100 on any such day.
`(C) For purposes of this paragraph, all teamster plans maintained by
the same employer (or any member of such employer's controlled group)
shall be treated as 1 plan, but only employees of such employer or member
shall be taken into account.
`(8) BENEFITS MAY NOT BE INCREASED BY REASON OF MINIMUM REQUIRED CONTRIBUTION-
A teamster plan may not provide for any increase in a participant's benefit
attributable to an increase in the minimum contributions determined under
this section for any plan year to the extent such minimum contributions
exceed the negotiated contributions for such plan year.
`(9) DEFINITIONS- For purposes of this section--
`(A) UNFUNDED PAST SERVICE LIABILITY- The term `unfunded past service
liability' means, with respect to each employer who, as of the first day
of the first plan year for which this section is effective, has an obligation
to contribute to a teamster plan, the excess of the employer's teamster
plan accrued liability determined as of such date over the employer's
initial market value of assets.
`(B) TEAMSTER PLAN ACCRUED LIABILITY- The term `teamster plan accrued
liability' means, with respect to each employer who has an obligation
to contribute to a teamster plan, the sum of the employer's transition
liability (if any) and the employer's ongoing liability.
`(C) TRANSITION LIABILITY- The term `transition liability' means, with
respect to each employer who, as of the first day of the first plan year
for which this section is effective, has an obligation to contribute to
a teamster plan, the product of--
`(I) the accrued liability for the benefits under the plan (as a whole,
as if such plan were treated as a single multiemployer plan rather
than a collection of single-employer plans but taking into account
the requirements of this section) attributable as of the first day
of the first plan year for which this section is effective to participants
who as of such date are not employed in credited service for any employer,
and
`(II) the accrued liability for the benefits under the plan (as a
whole, as if such plan were treated as a single multiemployer plan
rather than a collection of single-employer plans but taking into
account the requirements of this section) attributable as of the first
day of the first plan year which this section is effective to the
credited service of participants (other than participants described
in (I) with an employer that does not have an obligation to contribute
to the teamster plan as of such date, and
`(ii) the percentage determined as of the first day of the first plan
year for which this section is effective by dividing the sum of the
contributions required to be made under such plan by the employer for
the 5 preceding plan years by the sum of the contributions required
to be made by all such employers for the 5 preceding plan years.
`(D) ONGOING LIABILITY- The term `ongoing liability' means, with respect
to each employer, the accrued liability for benefits under a teamster
plan attributable to credited service with the employer for those participants
who are employed in credited service with any employer at any time on
or after the first day of the first plan year for which this section is
effective.
`(E) TEAMSTER PLAN CURRENT LIABILITY- The term `teamster plan current
liability' means, with respect to each employer who has an obligation
to contribute to a teamster plan, the sum of the employer's transition
current liability (if any) and the employer's ongoing current liability.
`(F) TRANSITION CURRENT LIABILITY- The term `transition current liability'
means, with respect to each employer who, as of the first day of the first
plan year for which this section is effective, has an obligation to contribute
to a teamster plan, the product of--
`(I) the current liability (as defined under section 302(d)(7)) for
the benefits under the plan (as a whole, as if such plan were treated
as a single multiemployer plan rather than a collection of single-employer
plans but taking into account the requirements of this section) attributable,
as of the first day of the first plan year for which this section
is effective, to participants who as of such date are not employed
in credited service for any employer, and
`(II) the current liability (as defined under section 302(d)(7)) for
the benefits under the plan (as a whole, as if such plan were treated
as a single multiemployer plan rather than a collection of single-employer
plans but taking into account the requirements of this section) attributable,
as of the first day of the first plan year for which this section
is effective section, to the credited service of participants (other
than participants described in (I)) with an employer that does not
have an obligation to contribute to the teamster plan as of such date,
and
`(ii) the percentage determined as of the first day of the first plan
year for which this section is effective by dividing the sum of the
contributions required to be made under such plan by the employer for
the 5 preceding plan years by the sum of the contributions required
to be made by all such employers for the 5 preceding plan years.
`(G) ONGOING CURRENT LIABILITY- The term `ongoing current liability' means,
with respect to each employer, the current liability (as defined under
section 302(d)(7)) for benefits under a teamster plan attributable to
credited service with the employer for those participants who are employed
in credited service with any employer at any time on or after the first
day of the first plan year for which this section is effective date of
this section.
`(H) EMPLOYER'S INITIAL MARKET VALUE OF ASSETS- The term `employer's initial
market value of assets' means, with respect to each employer who (as of
the first day of the first plan year for which this section is effective)
has an obligation to contribute to a teamster plan, the product, determined
as of the first day of the first plan year for which this section is effective,
of the funded percentage for the teamster plan as of such date and the
employer's teamster plan accrued liability as of such date.
`(I) FUNDED PERCENTAGE- The term `funded percentage' means, for each teamster
plan, the amount determined by dividing the fair market value of the assets
of the teamster plan (as a whole, as if such plan were treated as a single
multiemployer plan rather than a collection of single-employer plans but
taking into account the rules of this section), including receivables,
as of the first day of the first plan year for which this section is effective,
by the teamster plan accrued liability for the plan (as a whole, as if
such plan were treated as a single multiemployer plan rather than a collection
of single-employer plans but taking into account the rules of this section)
as of such date.
`(J) ANTICIPATION OF FUTURE BENEFIT INCREASES- For purposes of subparagraphs
(A), (B), (C), (D), and (I) in determining accrued liability, the funding
method of a plan shall anticipate benefit increases scheduled to take
effect during the term of the collective bargaining agreement(s) applicable
to the plan.
`(A) For purposes of this section, all employees of all corporations which
are members of a controlled group of corporations (within the meaning
of section 1563(a) of the Internal Revenue Code of 1986, determined without
regard to section 1563(a)(4) and (e)(3)(C) of such Code) shall be treated
as employed by a single employer.
`(B) For purposes of this section, under regulations prescribed by the
Secretary of the Treasury, all employees of trades or businesses (whether
or not incorporated) which are under common control shall be treated as
employed by a single employer. The regulations prescribed under this subparagraph
shall be based on principles similar to the principles which apply in
the case of subparagraph (A).
`(A) IN GENERAL- This section shall apply to plan years beginning after
December 31, 2003.
`(B) PERIODS BEFORE FUNDING EFFECTIVE DATE-
`(i) IN GENERAL- Notwithstanding any contrary provision, prior to the
funding effective date, an employer shall not be required to make the
minimum contributions determined under this section and shall not be
treated as maintaining a single-employer plan for purposes of subsections
(e) and (f) of section 302.
`(ii) For purposes of this subparagraph, the term `funding effective
date' means, with respect to each employer, the earlier of--
`(I) the date on which the last collective bargaining agreement ratified
before January 1, 2004 terminates (determined without regard to any
extension thereof after January 1, 2004), and
`(iii) SPECIAL RULE- An employer shall not be treated as having an accumulated
funding deficiency prior to the funding effective date solely by reason
of failing to make the minimum contributions determined under this section,
provided such employer makes its negotiated contributions.'.
(2) CLERICAL AMENDMENT- The table of contents in section 1 of such Act is
amended by striking the item relating to sections 308 and inserting the
following new items:
`Sec. 308. Teamster plans.
`Sec. 309. Effective dates.'.
(d) EFFECTIVE DATE- Except as otherwise provided herein, the amendments made
by this section shall apply to plan years beginning after December 31, 2003.
SEC. 4. CONFORMING AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.
(a) TEAMSTER PLANS NOT MULTIEMPLOYER PLAN FOR PURPOSES OF SECURITY REQUIREMENT-
Section 401(a)(29) of the Internal Revenue Code of 1986 is amended by adding
at the end the following new subparagraph:
`(F) TEAMSTER PLANS- For purposes of this paragraph, effective as of the
funding effective date as defined in section 412(o)(10), a teamster plan
(as defined in section 4001(a)(22) of the Employee Retirement Income Security
Act of 1974) shall not be treated
as a multiemployer plan, and each employer that has an obligation to contribute
to a teamster plan shall be treated as a contributing sponsor maintaining
a single-employer plan in accordance with section 412(o).'.
(b) RULE RELATING TO PROHIBITION ON BENEFIT INCREASES WHILE SPONSOR IN BANKRUPTCY-
Section 401(a)(33) of such Code is amended by redesignating subparagraph (D)
as subparagraph (E) and by inserting after subparagraph (C) the following
new subparagraph:
`(D) SPECIAL RULE FOR TEAMSTER PLANS- For purposes of this paragraph,
a teamster plan (as defined in section 4001(a)(22) of the Employee Retirement
Income Security Act of 1974) shall not be treated as a multiemployer plan.
This paragraph shall be applied separately with respect to each employer
that has an obligation to contribute to a teamster plan, and the funded
current liability percentage for purposes of subparagraph (B) shall be
determined in accordance with section 412(o).'.
(c) RULES RELATING TO DEDUCTIBILITY OF CONTRIBUTIONS-
(1) IN GENERAL- Section 404(a)(1) of such Code is amended by adding at the
end thereof the following subparagraph:
`(F) SPECIAL RULE FOR TEAMSTER PLANS- Notwithstanding any other provision
of this subchapter, in the case of any teamster plan (as defined in section
4001(a)(22) of the Employee Retirement Income Security Act of 1974), the
maximum amount deductible under the limitations of this paragraph for
a plan year by an employer obligated to make contributions to such plan
for such year shall not be less than the minimum contribution required
by such employer for such year under section 412(o).'.
(2) LIMITATION ON DEDUCTIONS WHERE COMBINATION OF DEFINED CONTRIBUTION PLAN
AND DEFINED BENEFIT PLAN- Section 404(a)(7) is amended by inserting after
subparagraph (D) the following new subparagraph:
`(E) TEAMSTER PLANS- Subparagraph (A) shall not apply to that portion
of the employer's contribution to a teamster plan (as defined in section
4001(a)(22) of the Employee Retirement Income Security Act of 1974) to
the extent such contribution is required as a result of charges to the
funding standard account described in section 412(o)(2)(B) or 412(o)(7).'.
(d) SPECIAL RULES FOR TEAMSTER PLANS- Section 412 of such Code is amended
by adding at the end the following new subsection:
`(1) IN GENERAL- For purposes of this section other than subsection (l),
a teamster plan (as defined in section 4001(a)(22) of the Employee Retirement
Income Security Act of 1974) shall not be treated as a multiemployer plan,
and each employer that has an obligation to contribute to a teamster plan
shall be treated as a contributing sponsor maintaining a single-employer
plan, subject to the special rules of this subsection.
`(2) FUNDING STANDARD ACCOUNT- A funding standard account shall be established
and maintained for each employer that has an obligation to contribute to
a teamster plan. In determining the funding standard account under subsection
(b) for each such employer--
`(A) subsections (b)(2)(B)(i) and (b)(2)(B)(ii) shall not apply;
`(B) in the case of a teamster plan in effect on the first day of the
first plan year for which this subsection is effective, the funding standard
account shall be charged with--
`(i) the amount necessary to amortize in equal annual installments (until
fully amortized) the employer's unfunded past service liability, over
a period of 30 plan years, and
`(ii) the amount necessary to amortize over a period of 10 plan years
in equal annual installments (until fully amortized) the credit determined
under section 412(o)(2)(C)(ii) for the immediately preceding plan year;
and
`(C) in the case of a teamster plan in effect on the first day of the
first plan year for which this subsection is effective, the funding standard
account shall be credited with--
`(i) the amount necessary to amortize in equal annual installments (until
fully amortized) the excess (if any) of the employer's initial market
value of assets over the employer's teamster plan accrued liability
determined as of the first day of the first plan year for which this
subsection is
effective, over a period of 30 plan years; and
`(ii) for an employer who has made its negotiated contribution for a
plan year beginning after December 31, 2003 and before the funding effective
date, the excess (if any) of--
`(I) the minimum funding requirement determined under this section
for such plan year, over
`(II) the actual contribution made to the plan for any such plan year.
`(3) VALUATION OF ASSETS- For purposes of subsection (c)(2)(A), the actuarial
value of assets of a teamster plan as of the first day of the first plan
year for which this subsection is effective shall be the fair market value
of such assets as of such date. The value of the assets attributable to
each employer shall be adjusted annually according to principles of master
trust accounting for the employer's plan contributions, investment income
(and loss), the employer's benefit payments with respect to its ongoing
liability and transition liability (if any), and the employer's share of
administrative expenses. Prospective investment experience may be reflected
in accordance with subsection (c)(2) or any applicable regulations issued
by the Secretary.
`(4) ELECTION WITH RESPECT TO BONDS- The special election described in subsection
(c)(2)(B) shall not apply.
`(5) CERTAIN RETROACTIVE PLAN AMENDMENTS- Notwithstanding any other provision
of this subsection, a teamster plan shall be treated as a multiemployer
plan for purposes of subsection (c)(8)(A).
`(6) BENEFITS MAY NOT BE INCREASED UNLESS TEAMSTER PLAN IS SUFFICIENTLY
FUNDED- In addition to the requirements of subsection (f)(1), no amendment
of a teamster plan which increases the liabilities of the plan with respect
to an employer 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 and no increase in benefits
attributable to an existing provision of a teamster plan (other than an
increase that results solely from an increase in a participant's compensation,
age or service or other similar factor), including an increase in benefits
attributable to an increase in the negotiated contribution, shall take effect
unless at the time such increase otherwise would be effective--
`(A) the percentage determined by dividing--
`(i) the lesser of the fair market value of the assets and the actuarial
value of the assets attributable to the employer for the plan year in
which the increase otherwise would be effective, by
`(ii) the employer's teamster plan current liability (determined using
the highest rate of interest which is allowable for the plan year under
subsection (l)(7)(C)) for the plan year in which the increase otherwise
would be effective,
is at least 90 percent, and
`(B) the percentage determined by dividing--
`(i) the amount described in subparagraph (A)(i), by
`(I) the amount described in subparagraph (A)(ii), and
`(II) the increase in the present value of future service benefits
(taking into account the amendment or other circumstance resulting
in such increase), determined using the highest rate of interest which
is allowable for the plan year under subsection (l)(7)C) and the mortality
assumptions required under subsection (l)(7)(C), for the plan year
in which the increase otherwise would be effective,
`(7) ADDITIONAL FUNDING REQUIREMENTS FOR TEAMSTER PLANS-
`(A) For any plan year beginning on or after January 1, 2004, and before
January 1, 2034, the amount charged to the funding standard account for
the plan year shall be increased by the amount which, after taking into
account charges and credits under subsection (b), is necessary to increase
the funded current liability percentage at the end of the plan year (taking
into account the expected change in current liability due to benefits
and interest accruing during the plan year, expected disbursements during
the plan year, and the change in the market value of assets due to interest
and expected disbursements during the plan year) for the plan year to
a percentage equal to the sum of--
`(i) the funded current liability percentage at the beginning of the
plan year, and
`(ii) the lesser of 4 percent or the percentage determined by dividing--
`(I) the excess of 90 percent over the funded current liability percentage
as of the beginning of the plan year, by
`(II) 30 minus the number of plan years completed since the last plan
year beginning before January 1, 2004.
`(B) For any plan year beginning on or after January 1, 2034, the amount
charged to the funding standard account for the plan year shall be increased
by the amount which, after taking into account charges and credits under
subsection (b), is necessary to increase the funded current liability
percentage at the end of the plan year (taking into account the expected
change in current liability due to benefits and interest accruing during
the plan year, expected disbursements during the plan year, and the change
in the market value of assets due to interest and expected disbursements during
the plan year) for the plan year to the lesser of--
`(ii) the sum of the funded current liability percentage at the beginning
of the plan year and 4 percent.
`(C) For purposes of this paragraph, the term `funded current liability
percentage' means, with respect to any plan year, the percentage which--
`(i) the lesser of the fair market value of the assets and the actuarial
value of the assets attributable to the employer for the plan year,
is of
`(ii) the employer's teamster plan current liability.
`(8) SPECIAL RULES FOR SMALL TEAMSTER PLANS-
`(A) Paragraph (7) shall not apply to any teamster plan for any plan year
if on each day during the preceding plan year such plan had no more than
100 participants.
`(B) In the case of a teamster plan to which subparagraph (A) does not
apply and which on each day during the preceding plan year had no more
than 150 participants, the amount of the increase under paragraph (7)
for such plan year shall be equal to the product of--
`(i) such increase determined without regard to this subparagraph, multiplied
by
`(ii) 2 percent for the highest number of participants in excess of
100 on any such day.
`(C) For purposes of this paragraph, all teamster plans maintained by
the same employer (or any member of such employer's controlled group)
shall be treated as 1 plan, but only employees of such employer or member
shall be taken into account.
`(9) BENEFITS MAY NOT BE INCREASED BY REASON OF MINIMUM REQUIRED CONTRIBUTION-
A teamster plan may not provide for any increase in a participant's benefit
attributable to an increase in the minimum contributions determined under
this subsection for any plan year to the extent such minimum contributions
exceed the negotiated contributions for such plan year.
`(10) DEFINITIONS- For purposes of this subsection--
`(A) UNFUNDED PAST SERVICE LIABILITY- The term `unfunded past service
liability' means, with respect to each employer who (as of the first day
of the first plan year for which this subsection is effective) has an
obligation to contribute to a teamster plan, the excess of the employer's
teamster plan accrued liability as of such date over the employer's initial
market value of assets.
`(B) TEAMSTER PLAN ACCRUED LIABILITY- The term `teamster plan accrued
liability' means, with respect to each employer who has an obligation
to contribute to a teamster plan, the sum of the employer's transition
liability (if any) and the employer's ongoing liability.
`(C) TRANSITION LIABILITY- The term `transition liability' means, with
respect to each employer who, as of the first day of the first plan year
for which this subsection is effective, has an obligation to contribute
to a teamster plan, the product of--
`(I) the accrued liability for the benefits under the plan (as a whole,
as if such plan were treated as a single multiemployer plan rather
than a collection of single-employer plans but taking into account
the requirements of this subsection) attributable, as of the first
day of the first plan year for which this subsection is effective,
to participants who as of such effective date are not employed in
credited service for any employer, and
`(II) the accrued liability for the benefits under the plan (as a
whole, as if such plan were treated as a single multiemployer plan
rather than a collection of single-employer plans but taking into
account the requirements of this subsection) attributable as of the
first day of the first plan year for which, this subsection is effective,
to the credited service of participants (other than participants described
in subclause (I)) with an employer that does not have an obligation
to contribute to the teamster plan as of such date, and
`(ii) the percentage determined as of the first day of the first plan
year for which this subsection is effective by dividing the sum of the
contributions required to be made under such plan by the employer for
the 5 preceding plan years by the sum of the contributions required
to be made by all such employers for the 5 preceding plan years.
`(D) ONGOING LIABILITY- The term `ongoing liability' means, with respect
to each employer, the accrued liability for benefits under a teamster
plan attributable to credited service with the employer for those participants
who are employed in credited service with any employer at any time on
or after the first day of the first plan year for which this section is
effective.
`(E) TEAMSTER PLAN CURRENT LIABILITY- The term `teamster plan current
liability'
means, with respect to each employer who has an obligation to contribute
to a teamster plan, the sum of the employer's transition current liability
(if any) and the employer's ongoing current liability.
`(F) TRANSITION CURRENT LIABILITY- The term `transition current liability'
means, with respect to each employer who, as of the first day of the first
plan year for which this subsection is effective, has an obligation to
contribute to a teamster plan the product of--
`(I) the current liability (as defined under subsection (l)(7)) for
the benefits under the plan (as a whole, as if such plan were treated
as a single multiemployer plan rather than a collection of single-employer
plans but taking into account the requirements of this subsection)
attributable as of the first day of the first plan year for which
this subsection is effective to participants who as of such effective
date are not employed in credited service for any employer, and
`(II) the current liability (as defined under subsection (l)(7)) for
the benefits under the plan (as a whole, as if such plan were treated
as a single multiemployer plan rather than a collection of single-employer
plans but taking into account the requirements of this subsection)
attributable as of the first day of the first plan year for which
this subsection is effective to the credited service of participants
(other than participants described in subclause (I)) with an employer
that does not have an obligation to contribute to the teamster plan
as of such date, and
`(ii) the percentage determined as of the first day of the first plan
year for which this subsection is effective by dividing the sum of the
contributions required to be made under such plan by the employer for
the 5 preceding plan years by the sum of the contributions required
to be made by all such employers for the 5 preceding plan years.
`(G) ONGOING CURRENT LIABILITY- The term `ongoing current liability' means,
with respect to each employer, the current liability (as defined under
subsection (l)(7)) for benefits under a teamster plan attributable to
credited service with the employer for those participants who are employed
in credited service with any employer at any time on or after the first
day of the first plan year for which this subsection is effective.
`(H) EMPLOYER'S INITIAL MARKET VALUE OF ASSETS- The term `employer's initial
market value of assets' means with respect to each employer who, as of
the first day of the first plan year for which this subsection is effective,
has an obligation to contribute to a teamster plan, the product determined
as of the first day of the first plan year for which this subsection is
effective of the funded percentage for the teamster plan as of such date
and the employer's teamster plan accrued liability as of such date.
`(I) FUNDED PERCENTAGE- The term `funded percentage' means, for each teamster
plan, the amount determined by dividing--
`(i) the fair market value of the assets of the teamster plan (as a
whole, as if such plan were treated as a single multiemployer plan rather
than a collection of single-employer plans but taking into account the
requirements of this subsection) including receivables, as of the first
day of the first plan year for which this subsection is effective, by
`(ii) the teamster plan accrued liability for the plan (as a whole,
as if such plan were treated as a single multiemployer plan rather than
a collection of single-employer plans but taking into account the requirements
of this subsection), as of such date.
`(J) ANTICIPATION OF FUTURE BENEFIT INCREASES- For purposes of subparagraphs
(A), (B), (C), (D), and (I) in determining accrued liability, the funding
method of a plan shall anticipate benefit increases scheduled to take
effect during the term of the collective bargaining agreement(s) applicable
to the plan.
`(A) IN GENERAL- This subsection shall apply to plan years beginning after
December 31, 2003.
`(B) PERIODS BEFORE FUNDING EFFECTIVE DATE-
`(i) IN GENERAL- Notwithstanding any contrary provision, prior to the
funding effective date, an employer shall not be required to make the
minimum contributions determined under this subsection and shall not
be treated as maintaining a single-employer plan for purposes of subsections
(m) and (n).
`(ii) FUNDING EFFECTIVE DATE- For purposes of this subparagraph, the
term `funding effective date' means, with respect to each employer,
the earlier of--
`(I) the date on which the last collective bargaining agreement ratified
before January 1, 2004, terminates (determined without regard to any
extension thereof after January 1, 2004), or
`(iii) SPECIAL RULE- An employer shall not be treated as having an accumulated
funding deficiency prior to the funding effective date solely by reason
of failing to make the minimum contributions determined under this subsection,
provided such employer makes its negotiated contributions.'.
(e) CERTAIN RULES APPLICABLE TO COLLECTIVELY BARGAINED PLANS NOT TO APPLY
TO TEAMSTER PLANS- Subsection (b) of section 413 of such Code is amended by
adding at the end the following new paragraph:
`(10) TEAMSTER PLANS- Notwithstanding subsection (a), in the case of a teamster
plan within the meaning of section 4001(a)(22) of the Employee Retirement
Income Security Act of 1974, paragraphs (5), (6), and (7) shall not apply,
and--
`(A) the minimum funding standard provided by section 412 shall be determined
in accordance with subsection (o) of such section,
`(B) liability for taxes under section 4971 shall be determined under
section 4971(h), and
`(C) each employer that has an obligation to contribute to a teamster
plan shall be treated as maintaining a single-employer plan in accordance
with section 412(o) for purposes of determining the applicable limitation
provided by section 404(a).'.
(f) MODIFICATION OF CONTROLLED GROUP RULES- Subsections (b) and (c) of section
414 of such Code are each amended by inserting `412(o),' after `411,'.
(g) MODIFICATION OF RULES ON MERGER AND CONSOLIDATION OF PLANS, ETC- Section
414(l) of such Code is amended by adding at the end the following new paragraph:
`(3) ASSETS OF TEAMSTER PLANS- The assets allocated to an employer that
has an obligation to contribute to a teamster plan (as defined in section
4001(a)(22) of the Employee Retirement Income Security Act of 1974) shall
not be used to pay benefits for service of participants with other employers
that have an obligation to contribute to such plan.'.
(h) TEAMSTER PLAN NOT TREATED AS MULTIEMPLOYER PLAN UNDER SPECIAL RULES FOR
MULTIEMPLOYER PLANS-
(1) IN GENERAL- Subpart C of part I of subchapter D of chapter 1 of such
Code is amended by adding at the end the following new section:
`SEC. 418F. TEAMSTER PLANS.
`For purposes of this subpart, a teamster plan (as defined in section 4001(a)(22)
of the Employee Retirement Income Security Act of 1974) shall not be treated
as a multiemployer plan.'.
(2) The table of sections for such subpart C is amended by adding at the
end the following new item:
`Sec. 418F. Teamster plans.'.
(i) TEAMSTER PLAN NOT TREATED AS MULTIEMPLOYER PLAN UNDER TAX ON FAILURE TO
MEET MINIMUM FUNDING STANDARDS- Section 4971 of such Code is amended by redesignating
subsection (g) as subsection (h) and by inserting after subsection (f) the
following new subsection:
`(g) TEAMSTER PLANS- For purposes of this section, effective as of the funding
effective date as defined in section 412(o)(10), a teamster plan (as defined
in section 4001(a)(22) of the Employee Retirement Income Security Act of 1974)
shall not be treated as a multiemployer plan, and each employer that has an
obligation to contribute to a teamster plan shall be treated as maintaining
a single-employer plan in accordance with section 412(o).'.
(j) EFFECTIVE DATE- Except as otherwise provided herein the amendments made
by this section shall apply to plan years beginning after December 31, 2003.
SEC. 5. AMENDMENTS TO THE LABOR MANAGEMENT RELATIONS ACT, 1947.
(a) REQUIREMENTS RELATING TO LABOR ORGANIZATIONS- Section 8(a)(2) of the National
Labor Relations Act (29 U.S.C. 158(a)(2)) is amended by striking `pay;' and
inserting `pay: Provided further, That an employer shall not be prohibited,
in the case of a trust fund that is part of a plan to which section 308 of
the Employee Retirement Income Security Act of 1974 or section 412(o) of the
Internal Revenue Code of 1986 applies, from making contributions to the plan,
otherwise required under part 3 of subtitle B of title I of such Act or under
section 412 of such Code, at the minimum levels required under the applicable
provisions of such sections 308 and 412(o), or from making future contributions
to such plan, otherwise required under such part 3 or such section 412, at
negotiated levels, with respect to each such future contribution for any period,
reduced by the amount by which the minimum contribution contributed for any
prior contribution period exceeded the negotiated contribution for such period.'.
(b) REQUIREMENT TO BARGAIN COLLECTIVELY- Section 8(a)(5) of such Act (29 U.S.C.
158(a)(5)) is amended by striking `section 9(a).' and inserting `section 9(a):
Provided, That an employer shall not be prohibited, in the case of
a trust fund that is part of a plan to which section 308 of the Employee Retirement
Income Security Act of 1974 or section 412(o) of the Internal Revenue Code
of 1986 applies, from making contributions to the plan, otherwise required
under part 3 of subtitle B of title I of such Act or under section 412 of
such Code, at the minimum levels required under the applicable provisions
of such sections 308 and 412(o), or from making future contributions to such
plan, otherwise required under such part 3 or such section 412, at negotiated
levels, with respect to each such future contribution for any period, reduced
by the amount by which the minimum contribution contributed for any prior
contribution period exceeded the negotiated contribution for such period.'.
(c) PROTECTIONS FOR AMOUNTS HELD IN TRUST- Section 302(c)(5) of the Labor
Management Relations Act, 1947 (29 U.S.C. 186(c)(5)) is amended by striking
`annuities;' and inserting `annuities: `Provided further, That an
employer shall not be prohibited, in the case of a trust fund that is part
of a plan to which section 308 of the Employee Retirement Income Security
Act of 1974 or section 412(o) of the Internal Revenue Code of 1986 applies,
from making contributions to the plan, otherwise required under part 3 of
subtitle B of title I of such Act or under section 412 of such Code, at the
minimum levels required under the applicable provisions of such sections 308
and 412(o), or from making future contributions to such plan, otherwise required
under such part 3 or such section 412, at negotiated levels, with respect
to each such future contribution for any period, reduced by the amount by
which the minimum contribution contributed for any prior contribution period
exceeded the negotiated contribution for such period;'.
(d) EFFECTIVE DATE- The amendments made by this section shall take effect
January 1, 2004.
END
