,,ii  #aadth ,,congress  #b;d ,session  
,s4 #bhid  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #bh1    
#bjaf ,ms4 ,stabenow 7for herself1 ,mr4 
,brown1 ,mr4 ,peters1 ,mrs4 ,mc,caskill1
 and ,ms4 ,klobuchar7 introduced the    
following bill2 which was read twice and
 referred to the ,committee on ,health1 
,education1 ,labor1 and ,pensions  ,a   
,,bill  ,to amend the ,internal ,revenue
 ,code and the ,employee ,retirement    
,income ,security ,act of #aigd to      
provide for salary reductions for       
certain employees of a pension plan in  
critical or declining status that       
reduces participant benefits1 and for   
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,pension ,fund 
,integrity ,act of #bjaf4  #b4          
,executive salaries  7a7 ,amendments to 
,internal ,revenue ,code of #aihf  7#a7 
,in general ,subparagraph 7,c7 of       
section #dcb7;e77#i7 of the ,internal   
,revenue ,code of #aihf is amended by   
adding at the end the following new     

clause3  7iii7 ,in the case of a        
systemically important plan 7as defined 
in subparagraph 7,h77v77,,iii771        
effective on the date the benefit       
suspension goes into effect1 the annual 
compensation of each employee of the    
plan is reduced to the lesser of--  7,i7
 the annual compensation of the employee
 for the plan year in which the benefit 
suspension is approved under            
subparagraph 7,g7 7determined as of the 
date of such approval71 reduced by the  
reduction percentage of so much of such 
annual compensation as exceeds #ajj1jjj1
 or  7,,ii7 the average annual          
compensation of the employee for the #c 
plan years immediately preceding the    
year in which the benefit suspension is 
approved under subparagraph 7,g71       
reduced by the reduction percentage of  
so much of such average annual          
compensation as exceeds #ajj1jjj1  and  
will not be increased 7including by     
means of a bonus1 performance-based     
compensation1 or otherwise7 as long as  

the benefit suspension remains in       
effect4 ,for purposes of the preceding  
sentence1 the term reduction percentage 
means the percentage determined by the  
,secretary and provided to the plan     
which is equal to the average percentage
 reduction in benefits applicable to the
 #ej participants and beneficiaries who 
receive the greatest reduction in       
benefits under the plan as a result of  
the suspension4  4  7#b7 ,tax on        
prohibited transactions  7,a7 ,in       
general ,paragraph 7#a7 of section      
#dige7;c7 of such ,code is amended-- 7i7
 by striking or at the end of           
subparagraph 7,e71  7ii7 by striking the
 period at the end of subparagraph 7,f7 
and inserting 2 or1 and  7iii7 by adding
 at the end the following new           
subparagraph3  7,g7 notwithstanding     
subsection 7d77#b71 payment by a        
systemically important plan 7as defined 
in section #dcb7;e77#i77;,h77v77,,iii77 
of--  7i7 any compensation 7including a 
bonus or performance-based compensation7

 in excess of the amount determined     
under section #dcb7;e77#i77;,c77iii7 to 
any employee of the plan with respect to
 which a benefit suspension is in effect
 under section #dcb7;e77#i71 or  7ii7 in
 the case of any nonemployee who was an 
employee of the plan during any of the  
#c plan years immediately preceding the 
year in which the benefit suspension is 
approved under section                  
#dcb7;e77#i77;,g71 any compensation to  
such individual 7as an independent      
contractor or otherwise and including   
any bonus or performance-based          
compensation7 in excess of the amount   
that would be determined under section  
#dcb7;e77#i77;,c77iii7 if the individual
 were an employee at the time of payment
 of such compensation4  4  7,b7         
,liability for tax ,subsection 7a7 of   
section #dige of such ,code is amended  
by inserting before the period the      
following3 1 except that any tax imposed
 by this subsection by reason of        
subsection 7c77#a77;,g7 shall be paid by

 the plan sponsor4  7,c7 ,liability for 
additional taxes ,subsection 7b7 of     
section #dige of such ,code is amended  
by inserting before the period the      
following3 1 except that any tax imposed
 by this subsection by reason of        
subsection 7c77#a77;,g7 shall be paid by
 the plan sponsor4  7,d7 ,clerical      
amendments ,the headings of subsections 
7a7 and 7b7 of section #dige of such    
,code are each amended by striking on   
disqualified person4  7b7 ,amendments to
 ,employee ,retirement ,income ,security
 ,act of #aigd  7#a7 ,in general        
,subparagraph 7,c7 of section           
#cje7;e77#i7 of the ,employee           
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #ajhe7;e77#i77;,c77
 is amended by adding at the end the    
following new clause3  7iii7 ,in the    
case of a systemically important plan   
7as defined in subparagraph             
7,h77v77,,iii771 effective on the date  
the benefit suspension goes into effect1
 the annual compensation of each        

employee of the plan is reduced to the  
lesser of--  7,i7 the annual            
compensation of the employee for the    
plan year in which the benefit          
suspension is approved under            
subparagraph 7,g7 7determined as of the 
date of such approval71 reduced by the  
reduction percentage of so much of such 
annual compensation as exceeds #ajj1jjj1
 or  7,,ii7 the average annual          
compensation of the employee for the #c 
plan years immediately preceding the    
year in which the benefit suspension is 
approved under subparagraph 7,g71       
reduced by the reduction percentage of  
so much of such average annual          
compensation as exceeds #ajj1jjj1  and  
will not be increased 7including by     
means of a bonus1 performance-based     
compensation1 or otherwise7 as long as  
the benefit suspension remains in       
effect4 ,for purposes of the preceding  
sentence1 the term reduction percentage 
means the percentage determined by the  
,secretary of the ,treasury and provided

 to the plan which is equal to the      
average percentage reduction in benefits
 applicable to the #ej participants and 
beneficiaries who receive the greatest  
reduction in benefits under the plan as 
a result of the suspension4  4  7#b7    
,prohibited transactions ,paragraph 7#a7
 of section #djf7;a7 of such ,act 7#bi  
,u4,s4,c4 #aajf7;a77#a77 is amended--   
7,a7 by striking or at the end of       
subparagraph 7,d71  7,b7 by striking the
 period at the end of subparagraph 7,e7 
and inserting 2 or1 and  7,c7 by adding 
at the end the following new            
subparagraph3  7,f7 notwithstanding     
section #djh7;b77#b71 payment by a      
systemically important plan 7as defined 
in section #cje7;e77#i77;,h77v77,,iii77 
of--  7i7 any compensation 7including a 
bonus or performance-based compensation7
 in excess of the amount determined     
under section #cje7;e77#i77;,c77iii7 to 
any employee of the plan with respect to
 which a benefit suspension is in effect
 under section #cje7;e77#i71 or  7ii7 in

 the case of any nonemployee who was an 
employee of the plan during any of the  
#c plan years immediately preceding the 
year in which the benefit suspension is 
approved under section                  
#cje7;e77#i77;,g71 any compensation to  
such individual 7as an independent      
contractor or otherwise and including   
any bonus or performance-based          
compensation7 in excess of the amount   
that would be determined under section  
#cje7;e77#i77;,c77iii7 if the individual
 were an employee at the time of payment
 of such compensation4  4  7c7          
,effective dates  7#a7 ,in general ,the 
amendments made by subsections 7a77#a7  
and 7b77#a7 shall apply to suspensions  
of benefits under section               
#dcb7;e77#i77;,g7 of the ,internal      
,revenue ,code of #aihf and section     
#cje7;e77#i77;,g7 of the ,employee      
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #ajhe7;e77#i77;,g77
 which take effect after the date of the
 enactment of this ,act4  7#b7          

,prohibited transactions ,the amendments
 made by subsections 7a77#b71 7b77#b71  
and 7b77#c7 shall apply to any          
transaction made after the date of the  
enactment of this ,act4  #c4            
,prohibition of lobbying expenses  7a7  
,amendments to ,internal ,revenue ,code 
of #aihf  7#a7 ,in general ,paragraph   
7#a7 of section #dige7;c7 of the        
,internal ,revenue ,code of #aihf1 as   
amended by section #a7;a71 is amended-- 
7,a7 by striking or at the end of       
subparagraph 7,f71  7,b7 by striking the
 period at the end of subparagraph 7,g7 
and inserting 2 or1 and  7,c7 by adding 
at the end the following new            
subparagraph3  7,h7 payment by the plan 
of any amount for the engagement of any 
person other than an employee of the    
plan in connection with any activity    
described in section #afb7;e77#a7 during
 any period in which the plan is in     
endangered status under section         
#dcb7;b77#a71 in critical status under  
section #dcb7;b77#b71 or in critical and

 declining status under section         
#dcb7;b77#f74  4  7#b7 ,liability of    
plan sponsor ,subsections 7a7 and 7b7 of
 section #dige of such ,code1 as amended
 by section #a7;a71 are each amended by 
striking subsection 7c77#a77;,g7 and    
inserting subparagraph 7,g7 or 7,h7 of  
subsection 7c77#a74  7b7 ,amendments to 
,employee ,retirement ,income ,security 
,act of #aigd  7#a7 ,in general         
,paragraph 7#a7 of section #djf7;a7 of  
the ,employee ,retirement ,income       
,security ,act of #aigd 7#bi ,u4,s4,c4  
#aajf7;a77#a771 as amended by section   
#a7;b71 is amended--  7,a7 by striking  
or at the end of subparagraph 7,e71     
7,b7 by striking the period at the end  
of subparagraph 7,f7 and inserting 2 or1
 and  7,c7 by adding at the end the     
following new subparagraph3  7,g7       
payment by the plan of any amount for   
the engagement of any person other than 
an employee of the plan in connection   
with any activity described in section  
#afb7;e77#a7 of the ,internal ,revenue  

,code of #aihf during any period in     
which the plan is in endangered status  
under section #cje7;b77#a71 in critical 
status under section #cje7;b77#b71 or in
 critical and declining status under    
section #cje7;b77#f74  4  7#b7          
,liability of plan sponsor ,subsection  
7c7 of section #dji of such ,act 7#bi   
,u4,s4,c4 #aaji7;c771 as added by       
section #a7;b71 is amended by striking  
#dige7;c77#a77;,g7 and inserting        
subparagraph 7,g7 or 7,h7 of section    
#dige7;c77#a74  7c7 ,effective date ,the
 amendments made by this section shall  
apply to transactions made after the    
date of the enactment of this ,act4