,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bdbe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ah1 #bjac ,mr4 
,ti]ney 7= himself1 ,mr4 ,george ,mill] 
( ,cali=nia1 ,mr4 ,&rews1 & ,mr4 ,jones7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,education & !       
,work=ce  ,a ,,bill  ,to am5d title ,i (
 ! ,employee ,retirem5t ,income         
,security ,act ( #aigd to provide       
protection = company-provid$ retiree    
heal? b5efits4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,e>n$ ,retiree     
,heal?c>e ,b5efits ,protection ,act (   
#bjac4  #b4 ,f9d+s & purposes  7a7      
,f9d+s ,! ,congress f9ds ! foll[+3  7#a7
 ,retir$ p>ticipants ( gr\p heal? plans 
regulat$ by ! ,employee ,retirem5t      
,income ,security ,act ( #aigd 7,,erisa7
 h be5 sev]ely h>m$ by ! virtually      
un*eck$ practices ( sponsors ( su* plans
 involv+ ! po/-retirem5t cancellation or
 r$uction ( e>n$ heal? b5efits contr>y  
to assurances retirees receiv$ prior to 
retirem5t t su* b5efits w\ld be ) !m =  

life4  7#b7 ,su* widespread             
po/-retirem5t r$uctions 9 retiree heal? 
b5efits has l$ to a crisis 9 retiree    
heal? c>e 9 :i* retirees--  7,a7 h be5  
unable to sub/itute individual cov]age =
 ! gr\p cov]age !y lo/1 or1 9 ord] to   
obta9 individual cov]age1 h jeop>diz$ _!
 economic security 9 retirem5t2  7,b7   
because ( preexi/+ m$ical conditions _c 
obta9 sub/itute cov]age t !y c af=d )\t 
deplet+ _! life sav+s or h be5 unable to
 obta9 adequate m$ical c>e or m$ical c>e
 !y _h reli$ on to deal ) s]i\s illness2
  7,c7 h su/a9$ cata/rophic illnesses or
 injuries or o!rwise exp]i5c$ a m>k$    
det]ioration 9 _! m$ical conditions or  
heal? z a result ( po/-retirem5t *anges 
to _! m$ical b5efits2  7,d7 h be5       
transf]r$ indiscrim9ately into improp]ly
 or inadequately manag$ heal? ma9t5ance 
organizations or o!r manag$ c>e         
entities1 result+ 9 ! wors5+ r ?an      
improvem5t ( prior m$ical conditions2 & 
7,e7 9 _m in/ances1 h fail$ to obta9    
adequate relief 9 ! c\rts due to highly 

re/rictive judicial int]pretations :i*  
are inconsi/5t ) ,,erisa's und]ly+      
protective purposes4  7#c7 ,! crisis 9  
retiree heal?c>e g5]at$ by ! plan       
sponsor practice ( po/-retirem5t        
cancellations or r$uctions ( previ\sly  
promis$ e>n$ retiree heal? b5efits has  
l$ to a widespread loss ( confid5ce 9 ! 
integrity ( ,,erisa-regulat$ gr\p heal? 
plans & ! ability ( ,,erisa itself to   
adequately protect retiree heal?        
b5efits4  7#d7 ,a /rong & dep5dable     
private sector retiree heal? sy/em is a 
necess>y compon5t to ! ess5tial heal? ( 
our ,nation's s5ior citiz5s4  7b7       
,purposes  7#a7 ,9 g5]al ,! purposes (  
?is ,act are to ensure t ! reasonable   
heal? b5efit expectations ( retirees f  
,,erisa-regulat$ gr\p heal? plans are   
fulfill$1 to m9imize ! incid5ce (       
prolong$ legal disputes aris+ out ( !   
po/-retirem5t cancellation or r$uction (
 e>n$ retiree heal? b5efits f su* plans1
 & to prev5t fur!r adv]se effects on    
retiree heal? aris+ f su* po/-retirem5t 

*anges4  7#b7 ,future safegu>ds &       
en=ceable obligations ,to c>ry out !    
purposes describ$ 9 p>agraph 7#a73  7,a7
 ,! provisions ( ?is ,act safegu>d      
retir$ p>ticipants ( gr\p heal? plans   
subject to ,,erisa f loss or r$uction ( 
_! heal? b5efits f su* plans by b>r+    
plan sponsors f cancel+ or r$uc+ su*    
b5efits aft] ! dates su* p>ticipants    
retire & :5 !y no long] are able to     
absorb su* losses or r$uctions )\t      
exp]i5c+ adv]se effects on _! heal? or  
f9ances4  7,b7 ,! provisions ( ?is ,act 
also e/abli% an en=ceable obligation on 
! "p ( sponsors ( su* gr\p heal? plans  
to re/ore heal? b5efits previ\sly tak5  
away f retir$ p>ticipants ( su* plans to
 ! ext5t su* b5efits 7 cancell$ or alt]$
 aft] ! dates su* p>ticipants retir$4 ,!
 obligation is limit$ to re/or+ heal?c>e
 b5efits only back to specifi$ levels1 &
 ! obligation does n apply if ! plan    
sponsor w\ld su/a9 sub/antial bus9ess   
h>d%ip by re/or+ su* b5efits4  #c4      
,retiree heal? b5efit protections 9 gr\p

 heal? plans  7a7 ,9 g5]al ,subtitle ,b 
( title ,i ( ! ,employee ,retirem5t     
,income ,security ,act ( #aigd is am5d$ 
by add+ at ! end ! foll[+ new "p3  #h   
,em]g5cy retiree heal? b5efit           
protections  #hja4 ,prohibition aga9/   
po/-retirem5t r$uctions ( retiree heal? 
b5efits by gr\p heal? plans  7a7 ,9     
g5]al ,not)/&+ t a gr\p heal? plan      
describ$ 9 subsection 7b7 may conta9 a  
provision res]v+ ! g5]al p[] to am5d or 
t]m9ate ! plan or a provision           
specifically au?oriz+ ! plan to make    
po/-retirem5t r$uctions 9 retiree heal? 
b5efits1 ! b5efits provid$ to a retir$  
p>ticipant or 8 or h] b5efici>y "u !    
t]ms ( ! plan may n be r$uc$1 :e!r ?r\gh
 am5dm5t or o!rwise1 if su* r$uction (  
b5efits occurs aft] ! date ! p>ticipant 
has retir$ = purposes ( ! plan & r$uces 
b5efits t 7 provid$ to ! p>ticipant1 or 
8 or h] b5efici>y1 z ( ! date !         
p>ticipant retir$4 ,any gr\p heal? plan 
provision :i* is purport$ to au?orize ! 
r$uction ( b5efits 9 a mann] inconsi/5t 

) ! prec$+ s5t5ce %all be void z aga9/  
public policy4  7b7 ,gr\p heal? plan ,= 
purposes ( ?is "p1 ! t]m gr\p heal? plan
 has ! same mean+ z 9 section #fjg7a74  
7c7 ,prohibit$ r$uction ( b5efits ,=    
purposes ( ?is "p1 any ref]5ce to a     
r$uction ( b5efits %all be con/ru$ to be
 a ref]5ce to any am5dm5t to a gr\p     
heal? plan1 or to any o!r action1 :i*   
has ! effect (--  7#a7 cancel+1         
decreas+1 or limit+ ! am\nt1 type1 or =m
 ( any b5efit or option provid$ prior to
 ! am5dm5t or action2  7#b7 impos+ or   
increas+ out-(-pocket co/s t a retir$   
p>ticipant1 or 8 or h] b5efici>y1 mu/   
pay 9 ord] = b5efits t 7 provid$ "u !   
plan to ! p>ticipant or b5efici>y prior 
to ! am5dm5t or action to be provid$ to 
! p>ticipant or b5efici>y aft] ! am5dm5t
 or action2 or  7#c7 modify+ ! mann] by 
:i* m$ical s]vices are deliv]$ "u ! plan
 s t aft] ! am5dm5t or action a retir$  
p>ticipant1 or 8 or h] b5efici>y1 has   
less ready access to ! deliv]y ( any su*
 m$ical s]vices ?an ! p>ticipant or     

b5efici>y _h prior to ! am5dm5t or      
action4  7d7 ,treatm5t ( plan t]m9ation 
7#a7 ,9 g5]al ,subject to p>agraph 7#b71
 a t]m9ation ( a gr\p heal? plan %all be
 treat$ z a r$uction 9 b5efits prohibit$
 "u subsection 7a7 if1 aft] ! t]m9ation1
 ! plan sponsor ( ! t]m9at$ plan fails  
to cont9ue to provide to ! p>ticipants  
:o retir$ prior to ! t]m9ation & to _!  
b5efici>ies ! same retiree heal? b5efits
 t 7 provid$ prior to ! t]m9ation4  7#b7
 ,waiv] ,p>agraph 7#a7 %all n apply 9 ! 
case ( ! t]m9ation ( a gr\p heal? plan  
if ! ,secret>y issues a waiv] "u ?is    
p>agraph 9 connection ) su* t]m9ation4  
,! ,secret>y %all issue su* a waiv] if &
 only if ! plan sponsor demon/rates to !
 satisfaction ( ! ,secret>y1 9          
accordance ) regulations prescrib$ by ! 
,secret>y1 t su* plan sponsor w be      
unable to cont9ue 9 bus9ess unless su* a
 waiv] is issu$4  #hjb4 ,adoption by    
gr\p heal? plans ( provision b>r+       
po/-retirem5t r$uctions 9 retiree heal? 
b5efits ,ea* gr\p heal? plan :i*        

provides1 z ( ! date ( a p>ticipant's   
retirem5t "u ! plan1 b5efits aft] su*   
date ) respect to su* p>ticipant or 8 or
 h] b5efici>ies %all conta9 a provision 
:i* expressly b>s any r$uction 9 su*    
b5efits aft] su* date1 ei!r "u ! t]ms ( 
! plan or by any fiduci>y ( ! plan4     
#hjc4 ,re/oration by gr\p heal? plans ( 
b5efits r$uc$ aft] retirem5t  7a7 ,9    
g5]al ,! plan sponsor ( ea* gr\p heal?  
plan %all provide1 9 accordance ) ?is   
section1 b5efit re/oration "u ?is       
section to ea* retir$ p>ticipant t meets
 ! foll[+ requirem5ts3  7#a7 ,! retir$  
p>ticipant is entitl$ to b5efit cov]age 
"u ! plan z ( ! date ( ! enactm5t ( !   
,e>n$ ,retiree ,heal?c>e ,b5efits       
,protection ,act ( #bjac4  7#b7 ,!      
p>ticipant retir$ "u ! plan be=e ! date 
( ! enactm5t ( su* ,act1 & a r$uction 9 
b5efits1 ) respect to any b5efit or     
option provid$ to ! retir$ p>ticipant "u
 ! plan z ( ! date ! p>ticipant retir$1 
took effect aft] ! p>ticipant's date (  
retirem5t & be=e ! date ( ! enactm5t (  

su* ,act4  7#c7 ,! retir$ p>ticipant has
 elect$ to re/ore b5efits "u ! plan )9 !
 re/oration p]iod prescrib$ pursuant to 
subsection 7b7 & 9 accordance ) su*     
proc$ures z may be e/abli%$ "u ! plan   
pursuant to regulations ( ! ,secret>y4  
7b7 ,re/oration p]iod ,= purposes ( ?is 
section1 ! t]m re/oration p]iod means a 
p]iod :i* %all be prescrib$ by !        
,secret>y & :i*--  7#a7 beg9s n lat] ?an
 #a ye> aft] ! date ( ! enactm5t ( !    
,e>n$ ,retiree ,heal?c>e ,b5efits       
,protection ,act ( #bjac2  7#b7 ends    
be=e ! end ( ! #b-ye> p]iod beg9n+ ) su*
 date1 or su* long] p]iod z may result f
 a susp5sion ( su* #b-ye> p]iod by !    
,secret>y pursuant to section #hjd7;g72 
&  7#c7 is ( no less ?an #fj days       
duration4  7c7 ,applicable /&>ds =      
re/oration ( b5efits  7#a7 ,9 g5]al ,=  
purposes ( ?is section1 r$uc$ b5efits   
%all be deem$ re/or$ "u ?is section--   
7,a7 9 ! case ( a p>ticipant :o retir$  
"u ! plan be=e ! plan ye> beg9n+ ) or   
dur+ #aiia1 if ! b5efits :i* 7 subject$ 

to r$uction are re/or$ to ! level ( su* 
b5efits :i* 0 9 effect = ! plan ye>     
beg9n+ ) or dur+ #aiia2 &  7,b7 9 ! case
 ( a p>ticipant :o retir$ "u ! plan aft]
 ! plan ye> beg9n+ ) or dur+ #aiij &    
be=e ! date ( ! enactm5t ( ! ,e>n$      
,retiree ,heal?c>e ,b5efits ,protection 
,act ( #bjac1 if ! b5efits :i* 7        
subject$ to r$uction are re/or$ to !    
level ( su* b5efits :i* 0 9 effect      
imm$iately prior to ! r$uction4  7#b7   
,level ( b5efits ,= purposes ( p>agraph 
7#a71 re/oration ( b5efits to a level   
requir$ "u p>agraph 7#a7 occurs if--    
7,a7 any cancellation1 decrease1 or     
limitation ) respect to ! am\nt1 type1  
or =m ( any b5efit or option :i* result$
 9 ! r$uction 9 b5efits is resc9d$ or   
less5$ s z to result 9 ! am\nt1 type1 & 
=m ( b5efits 9 effect = ! plan ye>      
beg9n+ ) or dur+ #aiia 79 ! case ( a    
p>ticipant describ$ 9 p>agraph          
7#a77;,a77 or z ( imm$iately prior to ! 
r$uction 79 ! case ( a p>ticipant       
describ$ 9 p>agraph 7#a77;,b772  7,b7   

any imposition or increase 9            
out-(-pocket co/s t ! p>ticipant1 or 8  
or h] b5efici>y1 mu/ pay :i* result$ 9 !
 r$uction 9 b5efits is resc9d$ or less5$
 s z to result 9 ! level ( out-(-pocket 
co/s 9 effect = ! plan ye> beg9n+ ) or  
dur+ #aiia 79 ! case ( a p>ticipant     
describ$ 9 p>agraph 7#a77;,a77 or z (   
imm$iately prior to ! r$uction 79 ! case
 ( a p>ticipant describ$ 9 p>agraph     
7#a77;,b772 &  7,c7 any modification 9 !
 mann] by :i* m$ical s]vices are deliv]$
 "u ! plan :i* result$ 9 ! r$uction 9   
b5efits is resc9d$ or am5d$ s z to      
result 9 a mann] by :i* m$ical s]vices  
are deliv]$ "u ! plan :i* is            
sub/antially equival5t to ! mann] by :i*
 m$ical s]vices are deliv]$ 9 effect = !
 plan ye> beg9n+ ) or dur+ #aiia 79 !   
case ( a p>ticipant describ$ 9 p>agraph 
7#a77;,a77 or z ( imm$iately prior to ! 
r$uction 79 ! case ( a p>ticipant       
describ$ 9 p>agraph 7#a77;,b774  7d7    
,exception = c]ta9 plans ,9 accordance )
 regulations prescrib$ by ! ,secret>y1 9

 ! case ( any gr\p heal? plan :i* has   
less ?an #ajj p>ticipants z ( ! date ( !
 enactm5t ( ! ,e>n$ ,retiree ,heal?c>e  
,b5efits ,protection ,act ( #bjac1      
subsection 7a7 %all apply to su* plan   
only if1 at any "t dur+ ! p]iod describ$
 9 subsection 7b77#b7 7includ+ any      
ext5sion !re(71 su* plan has m ?an #ajj 
p>ticipants4  7e7 ,notice requirem5ts   
conc]n+ re/oration ( b5efits ,9         
accordance ) su* regulations z may be   
prescrib$ by ! ,secret>y1 ! plan        
adm9i/rator ( ea* gr\p heal? plan       
subject to ! requirem5ts ( subsection   
7a7 %all1 )9 #cj days prior to !        
comm5cem5t ( ! plan's re/oration p]iod1 
provide writt5 notice to ea* retir$     
p>ticipant ( ! plan :o meets !          
requirem5ts ( subsection 7a7 ( ! foll[+3
  7#a7 ,a description ( all b5efits !   
retir$ p>ticipant is entitl$ to h       
re/or$4  7#b7 ,! adm9i/rative proc$ure  
e/abli%$ "u ! plan :i* may be us$ to    
submit a claim = ! re/oration ( any     
b5efits4  7#c7 ,an itemization ( ! value

 ( ea* b5efit ! retir$ p>ticipant is    
entitl$ to h re/or$1 z det]m9$ 9        
accordance ) ! regulations ( !          
,secret>y1 & ! total value ( all su*    
b5efits4  7#d7 ,a description ( any     
po/-retirem5t increases 9 retiree heal? 
b5efits ! retir$ p>ticipant receiv$ :i* 
! plan sponsor c\ld resc9d if ! retir$  
p>ticipant ass]ts a claim = ! re/oration
 ( b5efits4  7#e7 ,an itemization ( !   
value ( ea* retiree heal? b5efit t !    
plan sponsor c\ld resc9d1 z det]m9$ 9   
accordance ) ! regulations ( !          
,secret>y1 & ! total value ( all su*    
b5efits4  7#f7 ,if ! plan sponsor has   
fil$ an application = a sub/antial      
bus9ess h>d%ip exemption "u section     
#hjd1 ! date on :i* su* application 0   
fil$1 ! date on :i* notice ( su*        
application 0 giv5 to retir$ p>ticipants
 entitl$ to submit a claim = !          
re/oration ( b5efits1 & ! /atus ( su*   
application z ( ! date ( ! notice s5t   
pursuant to ?is subsection4  7#g7 ,su*  
o!r in=mation 9 su* =m & detail z may be

 prescrib$ by ! ,secret>y to c>ry out ! 
purposes ( ?is "p4  7f7 ,deadl9e =      
re/oration ( b5efits ,all b5efits       
requir$ to be re/or$ "u ?is section %all
 be re/or$ be=e ! end ( ! #b-ye> p]iod  
beg9n+ ) ! date ( ! enactm5t ( ! ,e>n$  
,retiree ,heal?c>e ,b5efits ,protection 
,act ( #bjac1 subject to any susp5sion (
 su* p]iod "u section #hjd7;g74  #hjd4  
,exemption f re/oration ( b5efits       
requirem5ts  7a7 ,application =         
exemption ,any plan sponsor ( a gr\p    
heal? plan t w\ld su/a9 sub/antial      
bus9ess h>d%ip if requir$ to fulfill1 9 
:ole or 9 "p1 ! re/oration ( b5efits    
requirem5ts conta9$ 9 section #hjc1 may 
file an application = an exemption ) !  
,secret>y f any or all ( su*            
requirem5ts4  7b7 ,au?ority = waiv] or  
v>iance ,9 response to an application   
fil$ by a plan sponsor pursuant to      
subsection 7a71 ! ,secret>y may waive or
 v>y ! requirem5ts ( section #hjc )     
respect to any or all ( su* requirem5ts1
 includ+ po/pon+ = reasonable p]iods (  

"t ! obligation ( ! plan sponsor to     
re/ore r$uc$ b5efits1 if ! ,secret>y    
f9ds t compliance by ! plan sponsor ) ! 
requirem5ts ( section #hjc w\ld--  7#a7 
be adv]se to ! int]e/s ( plan           
p>ticipants 9 ! aggregate2  7#b7 n be   
adm9i/ratively feasible2 &  7#c7 cause  
sub/antial bus9ess h>d%ip to ! plan     
sponsor4  7c7 ,factors tak5 into acc\nt 
,= purposes ( ?is section1 ! factors to 
be tak5 into acc\nt 9 det]m9+ sub/antial
 bus9ess h>d%ip %all include 7b %all n  
be limit$ to7 :e!r--  7#a7 ! plan       
sponsor is op]at+ at an economic loss2  
7#b7 compliance ) ! re/oration ( b5efits
 requirem5ts w\ld necessitate sub/antial
 future r$uctions 9 heal? b5efits       
provid$ to p>ticipants "u ! plan or     
cause a sub/antial decl9e 9 employm5t ) 
! plan sponsor2 &  7#c7 x is reasonable 
to expect t ! plan w be cont9u$ only if 
a waiv] or appropriate v>iance is       
grant$4  7d7 ,requirem5t ( satisfactory 
evid5ce  7#a7 ,9 g5]al ,! ,secret>y     
%all1 be=e grant+ a waiv] or v>iance "u 

?is section1 require ea* applicant to   
provide evid5ce satisfactory to !       
,secret>y t ! applicant has provid$     
timely writt5 notice ( ! fil+ ( an      
application = su* waiv] or v>iance to   
ea* retir$ p>ticipant entitl$ to submit 
a claim = ! re/oration ( b5efits "u !   
applicant's plan4  7#b7 ,timel9ess ,=   
purposes ( p>agraph 7#a71 a writt5      
notice %all be consid]$ timely if x is  
provid$ n lat] ?an #fj days prior to !  
date ! plan sponsor files an application
 = a waiv] or v>iance "u ?is section4   
7#c7 ,in=mation requir$ ,! notice ref]r$
 to 9 p>agraph 7#a7 %all include        
in=mation ) respect to ! specific relief
 t w be s\ght by ! plan sponsor's       
application1 ! p]iod ( "t = :i* relief  
is s\ght1 & su* o!r relevant in=mation z
 ! ,secret>y may prescribe4  7e7        
,p>ticipation 9 proce$+s by retir$ plan 
p>ticipants ,ea* retir$ p>ticipant      
entitl$ to submit a claim = ! re/oration
 ( b5efits )9 ! mean+ ( ?is section %all
 be provid$ a reasonable opportunity to 

submit comm5ts or o!rwise p>ticipate 9  
any proce$+ e/abli%$ by ! ,secret>y to  
det]m9e :e!r to grant or d5y an         
application = a waiv] or v>iance fil$ by
 ! retir$ p>ticipant's plan sponsor4    
7f7 ,exceptions = c]ta9 applications ,9 
any case 9 :i* ! plan sponsor ( ! gr\p  
heal? plan also ma9ta9s a p5sion plan   
:i* provides p5sion b5efits ) respect to
 any retir$ p>ticipant entitl$ to submit
 a claim = ! re/oration ( b5efits )9 !  
mean+ ( ?is section1 ! ,secret>y may n  
grant any application = a waiv] or      
v>iance purport+ to satisfy !           
requirem5ts ( subsection 7b7 if !       
requirem5ts ( p>agraph 7#a7 or 7#b7 (   
?is subsection are met4  7#a7 ,failure  
to transf] excess p5sion assets ,!      
requirem5ts ( ?is p>agraph are met if-- 
7,a7 )9 ! #e-ye> p]iod prec$+ ! date ( !
 plan sponsor's application = ! waiv] or
 v>iance1 ! plan sponsor c\ld h         
transf]r$ excess assets ( su* p5sion    
plan to a heal? b5efits acc\nt 9        
accordance ) section #dbj ( ! ,int]nal  

,rev5ue ,code ( #aihf 7z 9 effect on !  
date ( ! enactm5t ( ! ,tax ,relief      
,ext5sion ,act ( #aiii7 b did n d s2 &  
7,b7 su* heal? b5efits acc\nt =ms a "p (
 ! gr\p heal? plan ) respect to :i* !   
plan sponsor is submitt+ ! application4 
7#b7 ,no ad hoc ,c,o,l,as provid$ "u    
well-fund$ p5sion plan provid+ = su*    
,c,o,l,as  7,a7 ,9 g5]al ,! requirem5ts 
( ?is p>agraph are met if--  7i7 7,i7 no
 employ] contributions 7 made to su*    
p5sion plan dur+ any ( ! #e plan ye>s   
prec$+ ! date ( ! application = ! waiv] 
or v>iance2 &  7,,ii7 despite su* lack (
 employ] contributions1 ! m9imum fund+  
/&>d "u section #cjb ( ?is ,act &       
section #dab ( ! ,int]nal ,rev5ue ,code 
( #aihf 0 satisfi$ ) respect to su*     
p5sion plan = ea* ( su* #e plan ye>s & !
 av]age fund$ ratio ( ! plan = su* #e   
plan ye>s 0 great] ?an #abj p]c5t2 &    
7ii7 7,i7 ! p5sion plan provid$ = ad hoc
 co/-(-liv+ adju/m5ts 9 b5efits ?r\gh\t 
su* #e plan ye>s2 &  7,,ii7 no su* ad   
hoc co/-(-liv+ adju/m5t 9 b5efits 0     

provid$ "u su* p5sion plan dur+ su* #e  
plan ye>s4  7,b7 ,fund$ ratio ,=        
purposes ( subp>agraph 7,a77i77,,ii71 ! 
fund$ ratio ( a p5sion plan = a plan ye>
 is ! ratio1 express$ z a p]c5tage1 (-- 
7i7 ! assets ( ! plan z ( ! end ( su*   
plan ye>2 to  7ii7 ! liabilities ( !    
plan z ( ! end ( su* plan ye>4  7g7     
,runn+ ( #b-,ye> deadl9e p]iod susp5d$  
,! submission ( an application = a waiv]
 or v>iance pursuant to ?is section dur+
 ! #b-ye> p]iod ref]r$ to 9 section     
#hjc7;f7 %all susp5d ! runn+ ( su*      
p]iod4 ,if det]m9$ appropriate by !     
,secret>y1 ! ,secret>y may direct t !   
runn+ ( su* p]iod be resum$ ^u ! f9al   
conclusion ( proce$+s to det]m9e :e!r an
 application %\ld be grant$ or d5i$4    
#hje4 ,e/abli%m5t ( em]g5cy retiree     
heal? loan gu>antee program  7a7        
,def9itions ,= purposes ( ?is section-- 
7#a7 ,bo>d ,! t]m ,bo>d means ! ,em]g5cy
 ,retiree ,heal? ,loan ,gu>antee ,bo>d  
e/abli%$ "u subsection 7c74  7#b7       
,program ,! t]m ,program means !        

,em]g5cy ,retiree ,heal? ,loan ,gu>antee
 ,program e/abli%$ "u subsection 7b74   
7#c7 ,eligible plan sponsor ,! t]m      
eligible plan sponsor means any plan    
sponsor z def9$ 9 section #c7af77;,b7 t 
ma9ta9s a gr\p heal? plan subject to !  
retiree heal? b5efits re/oration        
requirem5ts ( section #hjc4  7b7        
,e/abli%m5t ( em]g5cy retiree heal? loan
 gu>antee program ,!re is e/abli%$ !    
,retiree ,heal? ,loan ,gu>antee         
,program1 to be adm9i/]$ by ! ,bo>d1 !  
purpose ( :i* is to provide loan        
gu>antees to eligible plan sponsors 9   
accordance ) ?is section4  7c7 ,retiree 
heal? loan gu>antee bo>d memb]%ip ,!re  
is e/abli%$ a ,retiree ,heal? ,loan     
,gu>antee ,bo>d1 :i* %all be compos$ (--
  7#a7 ! ,secret>y ( ,labor1 :o %all    
s]ve z ,*airman ( ! ,bo>d2  7#b7 !      
,secret>y ( ,comm]ce2  7#c7 ! ,secret>y 
( ! ,treasury2  7#d7 ! ,secret>y (      
,heal? & ,human ,s]vices2 &  7#e7 !     
,*airman ( ! ,c\ncil ( ,economic        
,advis]s4  7d7 ,retiree heal? loan      

gu>antee program  7#a7 ,au?ority ,!     
,program may gu>antee loans provid$ by  
private bank+ & inve/m5t in/itutions to 
eligible plan sponsors = purposes (     
assi/+ su* plan sponsors to meet _!     
obligations "u section #hjc4 ,su* loan  
gu>antees %all be provid$ to ! ext5t    
provid$ 9 advance 9 appropriation ,acts 
pursuant to p>agraph 7#d7 & only 9      
accordance ) ! proc$ures1 rules1 &      
regulations e/abli%$ by ! ,bo>d4  7#b7  
,total gu>antee limit ,! aggregate am\nt
 ( loans gu>ante$ & out/&+ at any "t "u 
?is section may n exce$ #e1jjj1jjj1jjj4 
7#c7 ,individual gu>antee limit ,!      
aggregate am\nt ( loans gu>ante$ "u ?is 
section ) respect to a s+le eligible    
plan sponsor may n exce$ #e1jjj1jjj4    
7#d7 ,additional co/s ,= ! additional   
co/ ( loans gu>ante$ "u ?is subsection1 
includ+ ! co/s ( modify+ ! loans1 z     
def9$ 9 section #ejb ( ! ,congressional 
,budget ,act ( #aigd 7#b ,u4,s4,c4      
#ffa;a71 !re is au?oriz$ to be          
appropriat$ #bjj1jjj1jjj1 to rema9      

available until exp5d$4  7e7            
,requirem5ts = loan gu>antees ,a loan   
gu>antee may be issu$ "u ?is section ^u 
application to ! ,bo>d by an eligible   
plan sponsor pursuant to an agreem5t to 
provide a loan to t eligible plan       
sponsor by a private bank or inve/m5t   
company1 if ! ,bo>d det]m9es t--  7#a7  
cr$it is n o!rwise available to t       
eligible plan sponsor "u reasonable t]ms
 & conditions suffici5t to meet its     
f9anc+ ne$s ) respect to ! re/oration ( 
retiree heal? b5efits1 z reflect$ 9 !   
f9ancial & bus9ess plans ( t eligible   
plan sponsor2  7#b7 ! prospective e>n+  
p[] ( t eligible plan sponsor1 toge!r ) 
! "* & value ( ! security pl$g$1 furni% 
reasonable assurance ( repaym5t ( ! loan
 to be gu>ante$ 9 accordance ) its t]ms2
  7#c7 ! loan to be gu>ante$ be>s int]e/
 at a rate det]m9$ by ! ,bo>d to be     
reasonable1 tak+ into acc\nt ! curr5t   
av]age yield on out/&+ obligations ( !  
,unit$ ,/ates ) rema9+ p]iods ( maturity
 comp>able to ! maturity ( su* loan2    

7#d7 ! loan to be gu>ante$ w mat]ially  
assi/ t eligible plan sponsor to dis*>ge
 its obligation to comply ) ! re/oration
 ( b5efits requirem5ts conta9$ 9 section
 #hjc2 &  7#e7 ! eligible plan sponsor  
has agre$ to an audit by ! ,gov]nm5t    
,acc\ntability ,(fice prior to !        
issuance ( ! loan gu>antee & annually   
:ile any su* gu>ante$ loan is out/&+4   
7f7 ,t]ms & conditions ( loan gu>antee  
7#a7 ,loan duration ,all loans gu>ante$ 
"u ?is section %all be payable 9 full n 
lat] ?an ,decemb] #ca1 #bjba1 & ! t]ms &
 conditions ( ea* su* loan %all provide 
t ! loan may n be am5d$ or any provision
 !re( waiv$ )\t ! cons5t ( ! ,bo>d4     
7#b7 ,loan security ,any commitm5t to   
issue a loan gu>antee "u ?is section    
%all conta9 su* affirmative & negative  
cov5ants & o!r protective provisions t !
 ,bo>d det]m9es are appropriate4  7#c7  
,fees ,an eligible plan sponsor receiv+ 
a gu>antee "u ?is section %all pay a fee
 9 an am\nt equal to #j4e p]c5t ( !     
out/&+ pr9cipal balance ( ! gu>ante$    

loan to ! ,dep>tm5t ( ! ,treasury4  7g7 
,reports to congress ,! ,secret>y (     
,labor %all submit annually to ea* ,h\se
 ( ! ,congress a full report ( !        
activities ( ! ,bo>d "u ?is section dur+
 #bjad & #bjae1 & annually !reaft] dur+ 
su* p]iod z any loan gu>ante$ "u ?is    
section is out/&+4 ,su* report %all be  
submitt$ n lat] ?an ,janu>y #ca ( ea*   
ye> 7beg9n+ 9 #bjad74  7h7 ,sal>ies &   
adm9i/rative exp5ses ,= necess>y exp5ses
 to adm9i/] ! ,program1 !re is au?oriz$ 
to be appropriat$ to ! ,dep>tm5t (      
,labor 7& to be transf]r$ to ! ,(fice ( 
! ,assi/ant ,secret>y = ,p5sion &       
,welf>e ,b5efits ,adm9i/ration7         
#aj1jjj1jjj1 to rema9 available until   
exp5d$4  7i7 ,t]m9ation ( gu>antee      
au?ority ,! au?ority ( ! ,bo>d to make  
commitm5ts to gu>antee any loan "u ?is  
section %all t]m9ate on ,decemb] #ca1   
#bjai4  7j7 ,regulatory action ,! ,bo>d 
%all issue su* f9al proc$ures1 rules1 & 
regulations z may be necess>y to c>ry   
out ?is section n lat] ?an #ij days aft]

 ! date ( enactm5t ( ! ,e>n$ ,retiree   
,heal?c>e ,b5efits ,protection ,act (   
#bjac4 ,9 no ev5t %all ! ,bo>d issue a  
proc$ure1 rule1 or regulation :i*       
au?orizes x to approve or d5y any       
application = a loan gu>antee 9 m ?an   
#bgj days aft] receipt ( su*            
application4  #hjf4 ,effect on o!r      
claims  7a7 ,o!r claims unaffect$ ,no?+ 
9 ?is "p %all be con/ru$ to alt]1       
impair1 or elim9ate any claim = retiree 
heal? b5efits bas$ on conduct alleg$ to 
violate ! t]ms ( a gr\p heal? plan1 any 
provision ( ?is ,act 7o!r ?an ?is "p71  
or bo?1 reg>dless ( :e!r su* conduct    
occurr$ prior to1 on1 or aft] ! date ( !
 enactm5t ( ! ,e>n$ ,retiree ,heal?c>e  
,b5efits ,protection ,act ( #bjac4  7b7 
,o!r causes ( action n au?oriz$ ,no?+   
conta9$ 9 ?is "p %all be con/ru$ to     
au?orize any action = recov]y ( retiree 
heal? b5efits unless ! conduct giv+ rise
 to ! claim = recov]y is alleg$ to      
violate ! provisions ( ?is "p4  #hjg4   
,regulations ,! ,secret>y may promulgate

 su* regulations z may be necess>y to   
c>ry out ! provisions ( ?is "p4 ,!      
,secret>y may promulgate any int]im f9al
 rules z ! ,secret>y deems are          
appropriate to c>ry out ?is "p4  4  7b7 
,civil p5alty ,section #ejb7;c7 ( !     
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #aacb7;c77  
is am5d$--  7#a7 by r$esignat+ ! second 
p>agraph 7#aj7 7relat+ to consultation  
betwe5 ! ,secret>y ( ,labor & !         
,secret>y ( ,heal? & ,human ,s]vices7 z 
p>agraph 7#ab72 &  7#b7 by ins]t+ aft] !
 fir/ p>agraph 7#aj7 ! foll[+ new       
p>agraph3  7#aa7 ,! ,secret>y may assess
 any p]son a civil p5alty ( n m ?an     
#bj1jjj ) respect to ea* failure by su* 
p]son to meet ! requirem5ts ( section   
#hja1 #hjb1 or #hjc ) respect to ea*    
p>ticipant or b5efici>y aggriev$ by su* 
failure4  4  7c7 ,con=m+ am5dm5t ,!     
table ( cont5ts 9 section #a ( su* ,act 
is am5d$ by ins]t+ aft] ! item relat+ to
 section #gcd ! foll[+ new items3  ,"p  
#h--;,em]g5cy retiree heal? b5efit      

protections ,sec4 #hja4 ,prohibition    
aga9/ po/-retirem5t r$uctions ( retiree 
heal? b5efits by gr\p heal? plans4 ,sec4
 #hjb4 ,adoption by gr\p heal? plans (  
provision b>r+ po/-retirem5t r$uctions 9
 retiree heal? b5efits4 ,sec4 #hjc4     
,re/oration by gr\p heal? plans (       
b5efits r$uc$ aft] retirem5t4 ,sec4     
#hjd4 ,exemption f re/oration ( b5efits 
requirem5ts4 ,sec4 #hje4 ,e/abli%m5t (  
em]g5cy retiree heal? loan gu>antee     
program4 ,sec4 #hjf4 ,effect on o!r     
claims4 ,sec4 #hjg4 ,regulations4  4    
#d4 ,effective date ,! am5dm5ts made by 
?is ,act %all take effect on ! date ( ! 
enactm5t ( ?is ,act1 except t section   
#hjb ( ! ,employee ,retirem5t ,income   
,security ,act ( #aigd 7z add$ by       
section #c ( ?is ,act7 %all apply )     
respect to plan ye>s beg9n+ aft] #ahj   
days aft] ! date ( ! enactm5t ( ?is     
,act4 ,compliance ) ! requirem5ts ( "p  
#h ( subtitle ,b ( title ,i ( !         
,employee ,retirem5t ,income ,security  
,act ( #aigd ) respect to a gr\p heal?  

plan %all n be treat$ z a failure to    
comply ) ! t]ms ( su* plan4