Text: H.R.3108 — 108th Congress (2003-2004)All Information (Except Text)

Text available as:

Shown Here:
Public Law No: 108-218 (04/10/2004)

 
[108th Congress Public Law 218]
[From the U.S. Government Printing Office]


[DOCID: f:publ218.108]

[[Page 595]]

                   PENSION FUNDING EQUITY ACT OF 2004

[[Page 118 STAT. 596]]

Public Law 108-218
108th Congress

                                 An Act


 
  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. <<NOTE: Apr. 10, 2004 -  [H.R. 3108]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Pension Funding Equity Act 
of 2004. 29 USC 1001 note.>> assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pension Funding Equity Act of 2004''.

                        TITLE I--PENSION FUNDING

SEC. 101. TEMPORARY REPLACEMENT OF 30-YEAR TREASURY RATE.

    (a) Employee Retirement Income Security Act of 1974.--
            (1) Determination of permissible range.--
                    (A) In general.--Clause (ii) of section 302(b)(5)(B) 
                of the Employee Retirement Income Security 
                Act <<NOTE: 29 USC 1082.>> of 1974 is amended by 
                redesignating subclause (II) as subclause (III) and by 
                inserting after subclause (I) the following new 
                subclause:
                          ``(II) Special rule for years 2004 and 2005.--
                      In the case of plan years beginning after December 
                      31, 2003, and before January 1, 2006, the term 
                      `permissible range' means a rate of interest which 
                      is not above, and not more than 10 percent below, 
                      the weighted average of the rates of interest on 
                      amounts invested conservatively in long-term 
                      investment grade corporate bonds during the 4-year 
                      period ending on the last day before the beginning 
                      of the plan year. Such rates shall be determined 
                      by the Secretary of the Treasury on the basis of 2 
                      or more indices that are selected periodically by 
                      the Secretary of the Treasury and that are in the 
                      top 3 quality levels available. The <<NOTE: Public 
                      information.>> Secretary of the Treasury shall 
                      make the permissible range, and the indices and 
                      methodology used to determine the average rate, 
                      publicly available.''.
                    (B) Secretarial authority.--Subclause (III) of 
                section 302(b)(5)(B)(ii) of such Act, as redesignated by 
                subparagraph (A), is amended--
                          (i) by inserting ``or (II)'' after ``subclause 
                      (I)'' the first place it appears, and

[[Page 118 STAT. 597]]

                          (ii) by striking ``subclause (I)'' the second 
                      place it appears and inserting ``such subclause''.
                    (C) Conforming amendment.--Subclause (I) of section 
                302(b)(5)(B)(ii) of such Act <<NOTE: 29 USC 1082.>> is 
                amended by inserting ``or (III)'' after ``subclause 
                (II)''.
            (2) Determination of current liability.--Clause (i) of 
        section 302(d)(7)(C) of such Act is amended by adding at the end 
        the following new subclause:
                                    ``(IV) Special rule for 2004 and 
                                2005.--For plan years beginning in 2004 
                                or 2005, notwithstanding subclause (I), 
                                the rate of interest used to determine 
                                current liability under this subsection 
                                shall be the rate of interest under 
                                subsection (b)(5).''.
            (3) Conforming amendment.--Paragraph (7) of section 302(e) 
        of such Act is amended to read as follows:
            ``(7) Special rule for 2002.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (d)(7)(C)(i)(III), for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002, 
        the current liability for the preceding plan year shall be 
        redetermined using 120 percent as the specified percentage 
        determined under subsection (d)(7)(C)(i)(II).''.
            (4) PBGC.--Clause (iii) of section 4006(a)(3)(E) of such Act 
        is amended <<NOTE: 29 USC 1306.>> by adding at the end the 
        following new subclause:
            ``(V) In the case of plan years beginning after December 31, 
        2003, and before January 1, 2006, the annual yield taken into 
        account under subclause (II) shall be the annual rate of 
        interest determined by the Secretary of the Treasury on amounts 
        invested conservatively in long-term investment grade corporate 
        bonds for the month preceding the month in which the plan year 
        begins. For purposes of the preceding sentence, the Secretary of 
        the Treasury shall determine such rate of interest on the basis 
        of 2 or more indices that are selected periodically by the 
        Secretary of the Treasury and that are in the top 3 quality 
        levels available. <<NOTE: Public information.>> The Secretary of 
        the Treasury shall make the permissible range, and the indices 
        and methodology used to determine the rate, publicly 
        available.''.

    (b) Internal Revenue Code of 1986.--
            (1) Determination of permissible range.--
                    (A) In general.--Clause (ii) of section 412(b)(5)(B) 
                of the Internal Revenue Code of 1986 <<NOTE: 26 USC 
                412.>> is amended by redesignating subclause (II) as 
                subclause (III) and by inserting after subclause (I) the 
                following new subclause:
                                    ``(II) Special rule for years 2004 
                                and 2005.--In the case of plan years 
                                beginning after December 31, 2003, and 
                                before January 1, 2006, the term 
                                `permissible range' means a rate of 
                                interest which is not above, and not 
                                more than 10 percent below, the weighted 
                                average of the rates of interest on 
                                amounts invested conservatively in long-
                                term investment grade corporate bonds 
                                during the 4-year period ending on the 
                                last day before the beginning of the 
                                plan year. Such rates shall be 
                                determined by the Secretary on the basis 
                                of 2 or more

[[Page 118 STAT. 598]]

                                indices that are selected periodically 
                                by the Secretary and that are in the top 
                                3 quality levels 
                                available. <<NOTE: Public 
                                information.>> The Secretary shall make 
                                the permissible range, and the indices 
                                and methodology used to determine the 
                                average rate, publicly available.''.
                    (B) Secretarial authority.--Subclause (III) of 
                section 412(b)(5)(B)(ii) of such Code, as redesignated 
                by subparagraph (A), <<NOTE: 26 USC 412.>> is amended--
                          (i) by inserting ``or (II)'' after ``subclause 
                      (I)'' the first place it appears, and
                          (ii) by striking ``subclause (I)'' the second 
                      place it appears and inserting ``such subclause''.
                    (C) Conforming amendment.--Subclause (I) of section 
                412(b)(5)(B)(ii) of such Code is amended by inserting 
                ``or (III)'' after ``subclause (II)''.
            (2) Determination of current liability.--Clause (i) of 
        section 412(l)(7)(C) of such Code is amended by adding at the 
        end the following new subclause:
                                    ``(IV) Special rule for 2004 and 
                                2005.--For plan years beginning in 2004 
                                or 2005, notwithstanding subclause (I), 
                                the rate of interest used to determine 
                                current liability under this subsection 
                                shall be the rate of interest under 
                                subsection (b)(5).''.
            (3) Conforming amendment.--Paragraph (7) of section 412(m) 
        of such Code is amended to read as follows:
            ``(7) Special rule for 2002.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (l)(7)(C)(i)(III), for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002, 
        the current liability for the preceding plan year shall be 
        redetermined using 120 percent as the specified percentage 
        determined under subsection (l)(7)(C)(i)(II).''.
            (4) Limitation on certain assumptions.--Section 
        415(b)(2)(E)(ii) of such Code <<NOTE: 26 USC 415.>> is amended 
        by inserting ``, except that in the case of plan years beginning 
        in 2004 or 2005, `5.5 percent' shall be substituted for `5 
        percent' in clause (i)'' before the period at the end.
            (5) Election to disregard modification for deduction 
        purposes.--Section 404(a)(1) of such Code <<NOTE: 26 USC 
        404.>> is amended by adding at the end the following new 
        subparagraph:
                    ``(F) Election to disregard modified interest 
                rate.--An employer may elect to disregard subsections 
                (b)(5)(B)(ii)(II) and (l)(7)(C)(i)(IV) of section 412 
                solely for purposes of determining the interest rate 
                used in calculating the maximum amount of the deduction 
                allowable under this paragraph.''.

    (c) Provisions <<NOTE: 26 USC 411 note.>> Relating to Plan 
Amendments.--
            (1) In general.--If this subsection applies to any plan or 
        annuity contract amendment--
                    (A) such plan or contract shall be treated as being 
                operated in accordance with the terms of the plan or 
                contract during the period described in paragraph 
                (2)(B)(i), and
                    (B) except as provided by the Secretary of the 
                Treasury, such plan shall not fail to meet the 
                requirements of section 411(d)(6) of the Internal 
                Revenue Code of 1986 and section

[[Page 118 STAT. 599]]

                204(g) of the Employee Retirement Income Security Act of 
                1974 by reason of such amendment.
            (2) Amendments to which section applies.--
                    (A) In general.--This <<NOTE: Effective 
                date.>> subsection shall apply to any amendment to any 
                plan or annuity contract which is made--
                          (i) pursuant to any amendment made by this 
                      section, and
                          (ii) on or before the last day of the first 
                      plan year beginning on or after January 1, 2006.
                    (B) Conditions.--This subsection shall not apply to 
                any plan or annuity contract amendment unless--
                          (i) during the period beginning on the date 
                      the amendment described in subparagraph (A)(i) 
                      takes effect and ending on the date described in 
                      subparagraph (A)(ii) (or, if earlier, the date the 
                      plan or contract amendment is adopted), the plan 
                      or contract is operated as if such plan or 
                      contract amendment were in effect; and
                          (ii) such plan or contract amendment applies 
                      retroactively for such period.

    (d) Effective <<NOTE: 26 USC 404 note.>> Dates.--
            (1) In general.--Except <<NOTE: Applicability.>> as provided 
        in paragraphs (2) and (3), the amendments made by this section 
        shall apply to plan years beginning after December 31, 2003.
            (2) Lookback rules.--For purposes of applying subsections 
        (d)(9)(B)(ii) and (e)(1) of section 302 of the Employee 
        Retirement Income Security Act of 1974 and subsections 
        (l)(9)(B)(ii) and (m)(1) of section 412 of the Internal Revenue 
        Code of 1986 to plan years beginning after December 31, 2003, 
        the amendments made by this section may be applied as if such 
        amendments had been in effect for all prior plan years. The 
        Secretary of the Treasury may prescribe simplified assumptions 
        which may be used in applying the amendments made by this 
        section to such prior plan years.
            (3) Transition rule for section 415 limitation.--In the case 
        of any participant or beneficiary receiving a distribution after 
        December 31, 2003 and before January 1, 2005, the amount payable 
        under any form of benefit subject to section 417(e)(3) of the 
        Internal Revenue Code of 1986 and subject to adjustment under 
        section 415(b)(2)(B) of such Code shall not, solely by reason of 
        the amendment made by subsection (b)(4), be less than the amount 
        that would have been so payable had the amount payable been 
        determined using the applicable interest rate in effect as of 
        the last day of the last plan year beginning before January 1, 
        2004.

SEC. 102. ELECTION OF ALTERNATIVE DEFICIT REDUCTION CONTRIBUTION.

    (a) 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) Election for certain plans.--
                    ``(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

[[Page 118 STAT. 600]]

                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 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 plan's enrolled actuary certifies 
                      (in such form and manner prescribed by the 
                      Secretary of the Treasury) that the amendment 
                      provides for an increase in annual contributions 
                      which will exceed the increase in annual charges 
                      to the funding standard account attributable to 
                      such amendment, or
                          ``(ii) the amendment is required by a 
                      collective bargaining agreement which is in effect 
                      on the date of enactment of this subparagraph.
                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, 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 the 
                      processing of iron ore pellets, 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 <<NOTE: Deadline.>> employer elects an 
                      alternative deficit reduction contribution under 
                      this paragraph and section 412(l)(12) of the 
                      Internal Revenue

[[Page 118 STAT. 601]]

                      Code of 1986 for any year, the employer shall 
                      provide, within 30 days 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.
                    ``(F) Election.--An election under this paragraph 
                shall be made at such time and in such manner as the 
                Secretary of the Treasury may prescribe.''.

    (b) Amendment of 1986 Code.--Section 412(l) of the Internal Revenue 
Code of 1986 <<NOTE: 26 USC 412.>> (relating to applicability of 
subsection) is amended by adding at the end the following new paragraph:
            ``(12) Election for certain plans.--
                    ``(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 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

[[Page 118 STAT. 602]]

                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 plan's enrolled actuary certifies 
                      (in such form and manner prescribed by the 
                      Secretary) that the amendment provides for an 
                      increase in annual contributions which will exceed 
                      the increase in annual charges to the funding 
                      standard account attributable to such amendment, 
                      or
                          ``(ii) the amendment is required by a 
                      collective bargaining agreement which is in effect 
                      on the date of enactment of this subparagraph.
                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, 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 the 
                      processing of iron ore pellets, 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 made at such time and in such manner as the 
                Secretary may prescribe.''.

    (c) Effect of Election.--An election <<NOTE: 26 USC 412 
note.>> under section 302(d)(12) of the Employee Retirement Income 
Security Act of 1974 or section 412(l)(12) of the Internal Revenue Code 
of 1986 (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 person'' after ``101(e)(2) 
with respect to any person''.

SEC. 103. MULTIEMPLOYER PLAN FUNDING NOTICES.

    (a) In General.--Section 101 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1021) is amended by inserting after 
subsection (e) the following new subsection:

[[Page 118 STAT. 603]]

    ``(f) 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)) 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 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 notice 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 not inconsistent with regulations prescribed by 
                the Secretary.
            ``(3) Time for providing notice.--
        Any <<NOTE: Deadline.>> 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) <<NOTE: Regulations.>> shall be provided in a 
                form and manner prescribed in regulations of the 
                Secretary,
                    ``(B) shall be written in a manner so as to be 
                understood by the average plan participant, and
                    ``(C) 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

[[Page 118 STAT. 604]]

by striking ``or section 101(e)(1)'' and inserting ``, section 
101(e)(1), or section 101(f)''.
    (c) Regulations and Model Notice.--The <<NOTE: Deadline. 29 USC 1021 
note.>> Secretary of Labor shall, not later than 1 year after the date 
of the enactment of this Act, issue regulations (including a model 
notice) necessary to implement the amendments made by this section.

    (d) Effective Date.--The <<NOTE: 29 USC 1021 note.>> amendments made 
by this section shall apply to plan years beginning after December 31, 
2004.

SEC. 104. ELECTION FOR DEFERRAL OF CHARGE FOR PORTION OF NET EXPERIENCE 
            LOSS.

    (a) 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) Election for deferral of charge for portion of 
                net experience loss.--
                          ``(i) In general.--With respect to the net 
                      experience loss of an eligible multiemployer plan 
                      for the first plan year beginning after December 
                      31, 2001, the plan sponsor may elect to defer up 
                      to 80 percent of the amount otherwise required to 
                      be charged under paragraph (2)(B)(iv) for any plan 
                      year beginning after June 30, 2003, and before 
                      July 1, 2005, to any plan year selected by the 
                      plan from either of the 2 immediately succeeding 
                      plan years.
                          ``(ii) Interest.--For the plan year to which a 
                      charge is deferred pursuant to an election under 
                      clause (i), the funding standard account shall be 
                      charged with interest on the deferred charge for 
                      the period of deferral at the rate determined 
                      under section 304(a) for multiemployer plans.
                          ``(iii) 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 period for which a charge is deferred 
                      pursuant to an election under clause (i), unless--
                                    ``(I) the plan's enrolled actuary 
                                certifies (in such form and manner 
                                prescribed by the Secretary of the 
                                Treasury) that the amendment provides 
                                for an increase in annual contributions 
                                which will exceed the increase in annual 
                                charges to the funding standard account 
                                attributable to such amendment, or
                                    ``(II) the amendment is required by 
                                a collective bargaining agreement which 
                                is in effect on the date of enactment of 
                                this subparagraph.
                      If a plan is amended during any such plan year in 
                      violation of the preceding sentence, any election 
                      under this paragraph shall not apply to any such 
                      plan year ending on or after the date on which 
                      such amendment is adopted.

[[Page 118 STAT. 605]]

                          ``(iv) Eligible multiemployer plan.--For 
                      purposes of this subparagraph, the term `eligible 
                      multiemployer plan' means a multiemployer plan--
                                    ``(I) which had a net investment 
                                loss for the first plan year beginning 
                                after December 31, 2001, of at least 10 
                                percent of the average fair market value 
                                of the plan assets during the plan year, 
                                and
                                    ``(II) with respect to which the 
                                plan's enrolled actuary certifies (not 
                                taking into account the application of 
                                this subparagraph), on the basis of the 
                                acutuarial assumptions used for the last 
                                plan year ending before the date of the 
                                enactment of this subparagraph, that the 
                                plan is projected to have an accumulated 
                                funding deficiency (within the meaning 
                                of subsection (a)(2)) for any plan year 
                                beginning after June 30, 2003, and 
                                before July 1, 2006.
                      For purposes of subclause (I), a plan's net 
                      investment loss shall be determined on the basis 
                      of the actual loss and not under any actuarial 
                      method used under subsection (c)(2).
                          ``(v) Exception to treatment of eligible 
                      multiemployer plan.--In no event shall a plan be 
                      treated as an eligible multiemployer plan under 
                      clause (iv) if--
                                    ``(I) for any taxable year beginning 
                                during the 10-year period preceding the 
                                first plan year for which an election is 
                                made under clause (i), any employer 
                                required to contribute to the plan 
                                failed to timely pay any excise tax 
                                imposed under section 4971 of the 
                                Internal Revenue Code of 1986 with 
                                respect to the plan,
                                    ``(II) for any plan year beginning 
                                after June 30, 1993, and before the 
                                first plan year for which an election is 
                                made under clause (i), the average 
                                contribution required to be made by all 
                                employers to the plan does not exceed 10 
                                cents per hour or no employer is 
                                required to make contributions to the 
                                plan, or
                                    ``(III) with respect to any of the 
                                plan years beginning after June 30, 
                                1993, and before the first plan year for 
                                which an election is made under clause 
                                (i), a waiver was granted under section 
                                303 of this Act or section 412(d) of the 
                                Internal Revenue Code of 1986 with 
                                respect to the plan or an extension of 
                                an amortization period was granted under 
                                section 304 of this Act or section 
                                412(e) of such Code with respect to the 
                                plan.
                          ``(vi) Notice.--If <<NOTE: Deadline.>> a plan 
                      sponsor makes an election under this subparagraph 
                      or 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

[[Page 118 STAT. 606]]

                      contribute under the plan, and to the Pension 
                      Benefit Guaranty Corporation. Such notice shall 
                      include with respect to any election the amount of 
                      any charge to be deferred and the period of the 
                      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.
                          ``(vii) Election.--An election under this 
                      subparagraph shall be made at such time and in 
                      such manner as the Secretary of the Treasury may 
                      prescribe.''.
            (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) Internal Revenue Code of 1986.--Section 412(b)(7) of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 412.>> (relating to special 
rules for multiemployer plans) is amended by adding at the end the 
following new subparagraph:
                    ``(F) Election for deferral of charge for portion of 
                net experience loss.--
                          ``(i) In general.--With respect to the net 
                      experience loss of an eligible multiemployer plan 
                      for the first plan year beginning after December 
                      31, 2001, the plan sponsor may elect to defer up 
                      to 80 percent of the amount otherwise required to 
                      be charged under paragraph (2)(B)(iv) for any plan 
                      year beginning after June 30, 2003, and before 
                      July 1, 2005, to any plan year selected by the 
                      plan from either of the 2 immediately succeeding 
                      plan years.
                          ``(ii) Interest.--For the plan year to which a 
                      charge is deferred pursuant to an election under 
                      clause (i), the funding standard account shall be 
                      charged with interest on the deferred charge for 
                      the period of deferral at the rate determined 
                      under subsection (d) for multiemployer plans.
                          ``(iii) 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 period for which a charge is deferred 
                      pursuant to an election under clause (i), unless--
                                    ``(I) the plan's enrolled actuary 
                                certifies (in such form and manner 
                                prescribed by the Secretary) that the 
                                amendment provides for an increase in 
                                annual contributions which will exceed 
                                the increase in annual charges to the 
                                funding standard account attributable to 
                                such amendment, or
                                    ``(II) the amendment is required by 
                                a collective bargaining agreement which 
                                is in effect on the date of enactment of 
                                this subparagraph.
                      If a plan is amended during any such plan year in 
                      violation of the preceding sentence, any election 
                      under this paragraph shall not apply to any such 
                      plan year

[[Page 118 STAT. 607]]

                      ending on or after the date on which such 
                      amendment is adopted.
                          ``(iv) Eligible multiemployer plan.--For 
                      purposes of this subparagraph, the term `eligible 
                      multiemployer plan' means a multiemployer plan--
                                    ``(I) which had a net investment 
                                loss for the first plan year beginning 
                                after December 31, 2001, of at least 10 
                                percent of the average fair market value 
                                of the plan assets during the plan year, 
                                and
                                    ``(II) with respect to which the 
                                plan's enrolled actuary certifies (not 
                                taking into account the application of 
                                this subparagraph), on the basis of the 
                                acutuarial assumptions used for the last 
                                plan year ending before the date of the 
                                enactment of this subparagraph, that the 
                                plan is projected to have an accumulated 
                                funding deficiency (within the meaning 
                                of subsection (a)) for any plan year 
                                beginning after June 30, 2003, and 
                                before July 1, 2006.
                      For purposes of subclause (I), a plan's net 
                      investment loss shall be determined on the basis 
                      of the actual loss and not under any actuarial 
                      method used under subsection (c)(2).
                          ``(v) Exception to treatment of eligible 
                      multiemployer plan.--In no event shall a plan be 
                      treated as an eligible multiemployer plan under 
                      clause (iv) if--
                                    ``(I) for any taxable year beginning 
                                during the 10-year period preceding the 
                                first plan year for which an election is 
                                made under clause (i), any employer 
                                required to contribute to the plan 
                                failed to timely pay any excise tax 
                                imposed under section 4971 with respect 
                                to the plan,
                                    ``(II) for any plan year beginning 
                                after June 30, 1993, and before the 
                                first plan year for which an election is 
                                made under clause (i), the average 
                                contribution required to be made by all 
                                employers to the plan does not exceed 10 
                                cents per hour or no employer is 
                                required to make contributions to the 
                                plan, or
                                    ``(III) with respect to any of the 
                                plan years beginning after June 30, 
                                1993, and before the first plan year for 
                                which an election is made under clause 
                                (i), a waiver was granted under section 
                                412(d) or section 303 of the Employee 
                                Retirement Income Security Act of 1974 
                                with respect to the plan or an extension 
                                of an amortization period was granted 
                                under subsection (e) or section 304 of 
                                such Act with respect to the plan.
                          ``(vi) Election.--An election under this 
                      subparagraph shall be made at such time and in 
                      such manner as the Secretary may prescribe.''.

[[Page 118 STAT. 608]]

                       TITLE II--OTHER PROVISIONS

SEC. 201. TWO-YEAR EXTENSION OF TRANSITION RULE TO PENSION FUNDING 
            REQUIREMENTS.

    (a) In General.--Section 769(c) of the Retirement Protection Act of 
1994, as added by section 1508 of the Taxpayer Relief Act of 
1997, <<NOTE: 26 USC 412 note.>> is amended--
            (1) by inserting ``except as provided in paragraph (3),'' 
        before ``the transition rules'', and
            (2) by adding at the end the following:
            ``(3) Special rules.--In <<NOTE: Applicability.>> the case 
        of plan years beginning in 2004 and 2005, the following 
        transition rules shall apply in lieu of the transition rules 
        described in paragraph (2):
                    ``(A) For purposes of section 412(l)(9)(A) of the 
                Internal Revenue Code of 1986 and section 302(d)(9)(A) 
                of the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 90 percent.
                    ``(B) For purposes of section 412(m) of the Internal 
                Revenue Code of 1986 and section 302(e) of the Employee 
                Retirement Income Security Act of 1974, the funded 
                current liability percentage for any plan year shall be 
                treated as not less than 100 percent.
                    ``(C) For purposes of determining unfunded vested 
                benefits under section 4006(a)(3)(E)(iii) of the 
                Employee Retirement Income Security Act of 1974, the 
                mortality table shall be the mortality table used by the 
                plan.''.

    (b) Effective Date.--The <<NOTE: Applicability. 26 USC 412 
note.>> amendments made by this section shall apply to plan years 
beginning after December 31, 2003.

SEC. 202. PROCEDURES APPLICABLE TO DISPUTES INVOLVING PENSION PLAN 
            WITHDRAWAL LIABILITY.

    (a) In General.--Section 4221 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1401) is amended by adding at the end 
the following new subsection:
    ``(f) Procedures Applicable to Certain Disputes.--
            ``(1) In general.--If--
                    ``(A) a plan sponsor of a plan determines that--
                          ``(i) a complete or partial withdrawal of an 
                      employer has occurred, or
                          ``(ii) an employer is liable for withdrawal 
                      liability payments with respect to the complete or 
                      partial withdrawal of an employer from the plan,
                    ``(B) such determination is based in whole or in 
                part on a finding by the plan sponsor under section 
                4212(c) that a principal purpose of a transaction that 
                occurred before January 1, 1999, was to evade or avoid 
                withdrawal liability under this subtitle, and
                    ``(C) such transaction occurred at least 5 years 
                before the date of the complete or partial withdrawal,
        then the special rules under paragraph (2) shall be used in 
        applying subsections (a) and (d) of this section and section 
        4219(c) to the employer.
            ``(2) Special rules.--
                    ``(A) Determination.--Notwithstanding subsection 
                (a)(3)--

[[Page 118 STAT. 609]]

                          ``(i) a determination by the plan sponsor 
                      under paragraph (1)(B) shall not be presumed to be 
                      correct, and
                          ``(ii) the plan sponsor shall have the burden 
                      to establish, by a preponderance of the evidence, 
                      the elements of the claim under section 4212(c) 
                      that a principal purpose of the transaction was to 
                      evade or avoid withdrawal liability under this 
                      subtitle.
                Nothing in this subparagraph shall affect the burden of 
                establishing any other element of a claim for withdrawal 
                liability under this subtitle.
                    ``(B) Procedure.--Notwithstanding subsection (d) and 
                section 4219(c), if an employer contests the plan 
                sponsor's determination under paragraph (1) through an 
                arbitration proceeding pursuant to subsection (a), or 
                through a claim brought in a court of competent 
                jurisdiction, the employer shall not be obligated to 
                make any withdrawal liability payments until a final 
                decision in the arbitration proceeding, or in court, 
                upholds the plan sponsor's determination.''.

    (b) Effective Date.--The <<NOTE: Applicability. 26 USC 1401 
note.>> amendments made by this section shall apply to any employer that 
receives a notification under section 4219(b)(1) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1399(b)(1)) after 
October 31, 2003.

SEC. 203. SENSE OF CONGRESS REGARDING DEFINED BENEFIT PENSION SYSTEM 
            REFORM.

    It is the sense of the Congress that the Congress must ensure the 
financial health of the defined benefit pension system by working to 
promptly implement--
            (1) a permanent replacement for the pension discount rate 
        used for defined benefit pension plan calculations, and
            (2) comprehensive funding reforms for all defined benefit 
        pension plans aimed at achieving accurate and sound pension 
        funding to enhance retirement security for workers who rely on 
        defined pension plan benefits, to reduce the volatility of 
        contributions, to provide plan sponsors with predictability for 
        plan contributions, and to ensure adequate disclosures for plan 
        participants in the case of underfunded pension plans.

SEC. 204. 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) <<NOTE: 26 USC 420.>> 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 Funding Equity Act of 2004''.
            (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 Funding Equity Act of 2004''.
            (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

[[Page 118 STAT. 610]]

                    (B) by striking ``Tax Relief Extension Act of 1999'' 
                and inserting ``Pension Funding Equity Act of 2004''.

SEC. 205. REPEAL OF REDUCTION OF DEDUCTIONS FOR MUTUAL LIFE INSURANCE 
            COMPANIES.

    (a) In General.--Section 809 of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 809.>> (relating to reductions in certain deduction 
of mutual life insurance companies) is hereby repealed.

    (b) Conforming Amendments.--
            (1) Subsections (a)(2)(B) and (b)(1)(B) of section 807 of 
        such Code <<NOTE: 26 USC 807.>> are each amended by striking 
        ``the sum of (i)'' and by striking ``plus (ii) any excess 
        described in section 809(a)(2) for the taxable year,''.
            (2)(A) The last sentence of section 807(d)(1) of such Code 
        is amended by striking ``section 809(b)(4)(B)'' and inserting 
        ``paragraph (6)''.
            (B) Subsection (d) of section 807 of such Code is amended by 
        adding at the end the following new paragraph:
            ``(6) Statutory reserves.--The term `statutory reserves' 
        means the aggregate amount set forth in the annual statement 
        with respect to items described in section 807(c). Such term 
        shall not include any reserve attributable to a deferred and 
        uncollected premium if the establishment of such reserve is not 
        permitted under section 811(c).''.
            (3) Subsection (c) of section 808 of such Code <<NOTE: 26 
        USC 808.>> is amended to read as follows:

    ``(c) Amount of Deduction.--The deduction for policyholder dividends 
for any taxable year shall be an amount equal to the policyholder 
dividends paid or accrued during the taxable year.''.
            (4) Subparagraph (A) of section 812(b)(3) <<NOTE: 26 USC 
        812.>> of such Code is amended by striking ``sections 808 and 
        809'' and inserting ``section 808''.
            (5) Subsection (c) of section 817 of such Code <<NOTE: 26 
        USC 817.>> is amended by striking ``(other than section 809)''.
            (6) Subsection (c) of section 842 of such Code <<NOTE: 26 
        USC 842.>> is amended by striking paragraph (3) and by 
        redesignating paragraph (4) as paragraph (3).
            (7) The table of sections for subpart C of part I of 
        subchapter L of chapter 1 of such Code is amended by striking 
        the item relating to section 809.

    (c) Effective Date.--The <<NOTE: Applicability. 26 USC 807 
note.>> amendments made by this section shall apply to taxable years 
beginning after December 31, 2004.

SEC. 206. 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 <<NOTE: 26 USC 501.>> 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)(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, or
                    ``(ii) in the case of a mutual insurance company--
                          ``(I) the gross receipts of which for the 
                      taxable year do not exceed $150,000, and

[[Page 118 STAT. 611]]

                          ``(II) more than 35 percent of such gross 
                      receipts consist of premiums.
        Clause (ii) shall not apply to a company if any employee of the 
        company, or a member of the employee's family (as defined in 
        section 2032A(e)(2)), is an employee of another company exempt 
        from taxation by reason of this paragraph (or would be so exempt 
        but for this sentence).''.

    (b) Controlled Group Rule.--Section 501(c)(15)(C) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 501.>> is amended by inserting ``, 
except that in applying section 831(b)(2)(B)(ii) for purposes of this 
subparagraph, subparagraphs (B) and (C) of section 1563(b)(2) shall be 
disregarded'' before the period at the end.

    (c) Definition of Insurance Company for Section 831.--Section 831 of 
the Internal Revenue Code of 1986 <<NOTE: 26 USC 831.>> 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)).''.
    (d) 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''.
    (e) <<NOTE: Applicability. 26 USC 501 note.>> Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2003.
            (2) Transition rule for companies in receivership or 
        liquidation.--In the case of a company or association which--
                    (A) for the taxable year which includes April 1, 
                2004, meets the requirements of section 501(c)(15)(A) of 
                the Internal Revenue Code of 1986, as in effect for the 
                last taxable year beginning before January 1, 2004, and
                    (B) on April 1, 2004, is in a receivership, 
                liquidation, or similar proceeding under the supervision 
                of a State court,
        the amendments made by this section shall apply to taxable years 
        beginning after the earlier of the date such proceeding ends or 
        December 31, 2007.

SEC. 207. <<NOTE: 15 USC 37b.>> CONFIRMATION OF ANTITRUST STATUS OF 
            GRADUATE MEDICAL RESIDENT MATCHING PROGRAMS.

    (a) Findings and Purposes.--
            (1) Findings.--Congress makes the following findings:
                    (A) For over 50 years, most United States medical 
                school seniors and the large majority of graduate 
                medical education programs (popularly known as 
                ``residency programs'') have chosen to use a matching 
                program to match medical students with residency 
                programs to which they have applied. These matching 
                programs have been an integral part of an educational 
                system that has produced the finest physicians and 
                medical researchers in the world.
                    (B) Before such matching programs were instituted, 
                medical students often felt pressure, at an unreasonably 
                early stage of their medical education, to seek 
                admission to, and accept offers from, residency 
                programs. As a result, medical students often made 
                binding commitments before they were in a position to 
                make an informed decision

[[Page 118 STAT. 612]]

                about a medical specialty or a residency program and 
                before residency programs could make an informed 
                assessment of students' qualifications. This situation 
                was inefficient, chaotic, and unfair and it often led to 
                placements that did not serve the interests of either 
                medical students or residency programs.
                    (C) The original matching program, now operated by 
                the independent non-profit National Resident Matching 
                Program and popularly known as ``the Match'', was 
                developed and implemented more than 50 years ago in 
                response to widespread student complaints about the 
                prior process. This Program includes on its board of 
                directors individuals nominated by medical student 
                organizations as well as by major medical education and 
                hospital associations.
                    (D) The Match uses a computerized mathematical 
                algorithm, as students had recommended, to analyze the 
                preferences of students and residency programs and match 
                students with their highest preferences from among the 
                available positions in residency programs that listed 
                them. Students thus obtain a residency position in the 
                most highly ranked program on their list that has ranked 
                them sufficiently high among its preferences. Each year, 
                about 85 percent of participating United States medical 
                students secure a place in one of their top 3 residency 
                program choices.
                    (E) Antitrust lawsuits challenging the matching 
                process, regardless of their merit or lack thereof, have 
                the potential to undermine this highly efficient, pro-
                competitive, and long-standing process. The costs of 
                defending such litigation would divert the scarce 
                resources of our country's teaching hospitals and 
                medical schools from their crucial missions of patient 
                care, physician training, and medical research. In 
                addition, such costs may lead to abandonment of the 
                matching process, which has effectively served the 
                interests of medical students, teaching hospitals, and 
                patients for over half a century.
            (2) Purposes.--It is the purpose of this section to--
                    (A) confirm that the antitrust laws do not prohibit 
                sponsoring, conducting, or participating in a graduate 
                medical education residency matching program, or 
                agreeing to do so; and
                    (B) ensure that those who sponsor, conduct or 
                participate in such matching programs are not subjected 
                to the burden and expense of defending against 
                litigation that challenges such matching programs under 
                the antitrust laws.

    (b) Application of Antitrust Laws to Graduate Medical Education 
Residency Matching Programs.--
            (1) Definitions.--In this subsection:
                    (A) Antitrust laws.--The term ``antitrust laws''--
                          (i) has the meaning given such term in 
                      subsection (a) of the first section of the Clayton 
                      Act (15 U.S.C. 12(a)), except that such term 
                      includes section 5 of the Federal Trade Commission 
                      Act (15 U.S.C. 45) to the extent such section 5 
                      applies to unfair methods of competition; and

[[Page 118 STAT. 613]]

                          (ii) includes any State law similar to the 
                      laws referred to in clause (i).
                    (B) Graduate medical education program.--The term 
                ``graduate medical education program'' means--
                          (i) a residency program for the medical 
                      education and training of individuals following 
                      graduation from medical school;
                          (ii) a program, known as a specialty or 
                      subspecialty fellowship program, that provides 
                      more advanced training; and
                          (iii) an institution or organization that 
                      operates, sponsors or participates in such a 
                      program.
                    (C) Graduate medical education residency matching 
                program.--The term ``graduate medical education 
                residency matching program'' means a program (such as 
                those conducted by the National Resident Matching 
                Program) that, in connection with the admission of 
                students to graduate medical education programs, uses an 
                algorithm and matching rules to match students in 
                accordance with the preferences of students and the 
                preferences of graduate medical education programs.
                    (D) Student.--The term ``student'' means any 
                individual who seeks to be admitted to a graduate 
                medical education program.
            (2) Confirmation of antitrust status.--It shall not be 
        unlawful under the antitrust laws to sponsor, conduct, or 
        participate in a graduate medical education residency matching 
        program, or to agree to sponsor, conduct, or participate in such 
        a program. Evidence of any of the conduct described in the 
        preceding sentence shall not be admissible in Federal court to 
        support any claim or action alleging a violation of the 
        antitrust laws.
            (3) Applicability.--Nothing in this section shall be 
        construed to exempt from the antitrust laws any agreement on the 
        part of 2 or more graduate medical education programs to fix the 
        amount of the stipend or other benefits received by students 
        participating in such programs.

    (c) Effective Date.--This <<NOTE: Applicability.>> section shall 
take effect on the date of enactment of this Act, shall apply to conduct 
whether it occurs prior to, on, or after such date of enactment, and 
shall apply

[[Page 118 STAT. 614]]

to all judicial and administrative actions or other proceedings pending 
on such date of enactment.

    Approved April 10, 2004.

LEGISLATIVE HISTORY--H.R. 3108:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-457 (Comm. of Conference).
CONGRESSIONAL RECORD:
                                                        Vol. 149 (2003):
                                    Oct. 8, considered and passed House.
                                                        Vol. 150 (2004):
                                    Jan. 22, 26-28, considered and 
                                        passed Senate, amended.
                                    Apr. 2, House agreed to conference 
                                        report.
                                    Apr. 8, Senate agreed to conference 
                                        report.

                                  <all>