,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #ceif  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bh1 #bjag,mr4 
,kelly of ,pennsylvania 7for himself and
 ,mr4 ,kind7 introduced the following   
bill2 which was referred to the         
,committee on ,education and the        
,workforce1 and in addition to the      
,committees on ,rules1 and the ,budget1 
for a period to be subsequently         
determined by the ,speaker1 in each case
 for consideration of such provisions as
 fall within the jurisdiction of the    
committee concerned  ,a ,,bill  ,to     
amend the ,employee ,retirement ,income 
,security ,act of #aigd to adjust       
single-employer premiums1 and for other 
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,rightsizing        
,pension ,premiums ,act of #bjag4  #b4  
,rightsizing pension premiums  7a7 ,in  
general ,section #djjf7;a7 of the       
,employee ,retirement ,income ,security 
,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77 
is amended by adding at the end the     

following3  7#i7 ,premium adjustments   
for small employers and based on ,,pbgc 
funded percentage  7,a7 ,in general     
,notwithstanding paragraph 7#c77;,a77i7 
and subject to subparagraphs 7,b7 and   
7,c71 the annual premium rate payable to
 the corporation by a single-employer   
plan for basic benefits guaranteed under
 this title is--  7i7 in the case of a  
single-employer plan for any plan year  
beginning in a fiscal year with respect 
to which the average of the             
single-employer pension insurance       
program funded percentages for the #b   
fiscal years immediately preceding such 
fiscal year is #aaj percent or greater1 
an amount for each individual who is a  
participant in such plan during the plan
 year equal to the sum of #ai and an    
additional premium equal to the quotient
 7not to exceed #ejj7 obtained by       
dividing--  7,i7 an amount equal to #i  
for each #a1jjj 7or fraction thereof7 of
 unfunded vested benefits under the plan
 as of the close of the preceding plan  

year1 by  7,,ii7 the number of          
participants in such plan as of the     
close of the preceding plan year2  7ii7 
in the case of a single-employer plan   
for any plan year beginning in a fiscal 
year with respect to which the average  
of the single-employer pension insurance
 program funded percentages for the #b  
fiscal years immediately preceding such 
fiscal year is at least #ajj percent but
 less than #aaj percent1 an amount for  
each individual who is a participant in 
such plan during the plan year equal to 
the sum of #cj and an additional premium
 equal to the quotient 7not to exceed   
#ejj7 obtained by dividing--  7,i7 an   
amount equal to #i for each #a1jjj 7or  
fraction thereof7 of unfunded vested    
benefits under the plan as of the close 
of the preceding plan year1 by  7,,ii7  
the number of participants in such plan 
as of the close of the preceding plan   
year2  7iii7 in the case of a           
single-employer plan for any plan year  
beginning in a fiscal year with respect 

to which the average of the             
single-employer pension insurance       
program funded percentages for the #b   
fiscal years immediately preceding such 
fiscal year is at least #ij percent but 
less than #ajj percent1 an amount for   
each individual who is a participant in 
such plan during the plan year equal to 
the sum of #fd and an additional premium
 equal to the quotient 7not to exceed   
#ejj7 obtained by dividing--  7,i7 an   
amount equal to #bh for each #a1jjj 7or 
fraction thereof7 of unfunded vested    
benefits under the plan as of the close 
of the preceding plan year1 by  7,,ii7  
the number of participants in such plan 
as of the close of the preceding plan   
year2  7iv7 notwithstanding clauses 7i7 
through 7iii71 in the case of a ,,csec  
plan 7as defined in section #baj7;f77 or
 single-employer plan maintained by a   
small employer for any plan year1 an    
amount for each individual who is a     
participant in such plan during the plan
 year equal to the sum of #ai and an    

additional premium equal to the quotient
 7not to exceed #ejj7 obtained by       
dividing--  7,i7 an amount equal to #i  
for each #a1jjj 7or fraction thereof7 of
 unfunded vested benefits under the plan
 as of the close of the preceding plan  
year1 by  7,,ii7 the number of          
participants in such plan as of the     
close of the preceding plan year2 and   
7v7 in any other case1 the amount       
determined under paragraph 7#c77;,a77i74
  7,b7 ,small employer premium phase-out
  7i7 ,in general ,in the case of a     
single-employer plan maintained by an   
employer who has more than #ejj         
employees but not more than #fjj        
employees on the first day of the plan  
year1 the annual premium rate payable to
 the corporation by such plan for basic 
benefits guaranteed under this title is 
an amount for each individual who is a  
participant in such plan during the plan
 year equal to the sum of--  7,i7 the   
annual premium rate that would be so    
payable by such plan if such plan were  

maintained by a small employer for such 
plan year1 plus--  7,,ii7 the applicable
 percentage of the excess of-- 7aa7 the 
annual premium rate so payable by such  
plan without regard to this             
subparagraph1 over  7bb7 the annual     
premium rate that would be so payable by
 such plan as described under subclause 
7,i74  7ii7 ,applicable percentage ,for 
purposes of this subparagraph1 the      
applicable percentage is the ratio      
7expressed as a percentage7 of--  7,i7  
the number of employees of the employer 
to the extent such number exceeds #ejj1 
over  7,,ii7 #ajj4  7,c7 ,special rule  
for multiple employer plans ,in the case
 of a multiple employer plan 7other than
 a ,,csec plan 7as defined in section   
#baj7;f7771 the annual premium rate     
payable to the corporation by such plan 
for basic benefits guaranteed under this
 title is the sum of the annual premiums
 that1 if each employer maintaining such
 plan were treated as maintaining a     
separate plan in which--  7i7 the number

 of participants equals the number of   
participants in the multiple employer   
plan who are employed 7or formerly      
employed7 by such employer1 and  7ii7   
the amount of unfunded vested benefits  
equals the portion of the unfunded      
vested benefits under the multiple      
employer plan attributable to such      
employer1  would be imposed on each     
separate plan in accordance with this   
section4 ,in determining the annual     
premiums that would be imposed on each  
of the separate plans described under   
this subparagraph1 the determination of 
whether an employer is a small employer 
shall be made separately with respect to
 each employer maintaining the multiple 
employer plan4  7,d7 ,special rule for  
small employers with #be or fewer       
employees ,in the case of a             
single-employer plan maintained by a    
small employer who has #be or fewer     
employees on the first day of the plan  
year 7as determined under paragraph     
7#c77;,i77ii771 the additional premium  

otherwise determined under subparagraph 
7,a77iv7 shall not exceed #e multiplied 
by the number of participants in the    
plan as of the close of the preceding   
plan year4  7,e7 ,wage indexing of      
certain amounts  ,for each plan year    
beginning in a calendar year after      
#bjah1 there shall be substituted for   
each of the first and second dollar     
amounts in clause 7ii7 of subparagraph  
7,a7 and the first1 second1 and third   
dollar amounts in clause 7iii7 of such  
subparagraph an amount equal to the     
greater of--  7i7 the product derived by
 multiplying each such amount by the    
ratio of-- 7,i7 the national average    
wage index 7as defined in section       
#bji7k77#a7 of the ,social ,security    
,act7 for the first of the #b calendar  
years preceding the calendar year in    
which such plan year begins1 to  7,,ii7 
the national average wage index 7as so  
defined7 for #bjaf2 and  7ii7 each such 
amount as in effect for plan years      
beginning in the preceding calendar     

year4  ,if any amount determined under  
this subparagraph is not a multiple of  
#a1 such product shall be rounded to the
 nearest multiple of #a4  7,f7          
,definitions ,for purposes of this      
paragraph3 7i7 ,small employer ,the term
 small employer means an employer who   
has #ejj or fewer employees on the first
 day of the plan year4  7ii7 ,multiple  
employer plan ,the term multiple        
employer plan means a single-employer   
plan maintained by more than one        
employer 7as determined under section   
#baj7;a774  7iii7 ,single-employer      
pension insurance program funded        
percentage ,the term single-employer    
pension insurance program funded        
percentage for a fiscal year means the  
ratio 7expressed as a percentage7 of--  
7,i7 the value of all assets held by the
 corporation in any trust or revolving  
fund on the last day of such fiscal year
 available for the payment of basic     
benefits guaranteed under section #djbb1
 to  7,,ii7 the present value 7as       

determined in accordance with section   
#cjc7;h7 without regard to paragraph    
7#b77;,c77iv77 of the liabilities of the
 corporation attributable to such       
guaranteed benefits on the last day of  
such fiscal year4  7iv7 ,unfunded vested
 benefits ,the term unfunded vested     
benefits has the meaning given such term
 in paragraph 7#c77;,e77iii71 except    
that with respect to a ,,csec plan 7as  
defined in section #baj7;f771 such term 
means the excess of--  7,i7 the plan's  
funding liability 7as defined in section
 #cjf7;j77#e77;,c771 determined by only 
taking into account vested benefits1    
over  7,,ii7 the fair market value of   
plan assets for the plan year which are 
held by the plan on the valuation date4 
4  7b7 ,individuals participating in    
more than one plan ,section             
#djjf7;a77#c77;,b7 of the ,employee     
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77;,b77
 is amended by inserting or paragraph   
7#i7 after subparagraph 7,a77i74  7c7   

,conforming amendment ,section          
#djjf7;a77#c77;,a7 of the ,employee     
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #acjf7 is amended  
in the matter preceding clause 7i7 by   
inserting and paragraph 7#i7 after      
subparagraph 7,c74  7d7 ,effective date 
,the amendments made by this shall apply
 with respect to plan years beginning   
after ,december #ca1 #bjag4  #c4        
,correction of the budget effects of    
premium changes  7a7 ,in general ,in the
 ,senate and the ,house of              
,representatives1 for purposes of       
determining points of order under the   
,congressional ,budget ,act of #aigd 7#b
 ,u4,s4,c4 #fba et seq47 or any         
concurrent resolution on the budget1 any
 provision that increases or decreases1 
or extends the increase or decrease of1 
any premiums payable to the ,pension    
,benefit ,guaranty ,corporation shall   
not be counted in estimating the level  
of budget authority1 outlays1 or        
revenues--  7#a7 in the ,senate1 for any

 bill1 joint resolution1 amendment1     
amendment between the ,houses1          
conference report1 or motion2 or  7#b7  
in the ,house of ,representatives1 for  
any bill or joint resolution1 or        
amendment thereto or conference report  
thereon4  7b7 ,rules of senate and house
 of representatives ,congress adopts the
 provisions of this section-- 7#a7 as an
 exercise of the rulemaking power of the
 ,senate and the ,house of              
,representatives1 respectively1 and as  
such is deemed a part of the rules of   
each ,house1 respectively1 and supersede
 other rules only to the extent that    
they are inconsistent with such rules2  
and  7#b7 with full recognition of the  
constitutional right of either ,house to
 change the rules 7so far as relating to
 the procedure of that ,house7 at any   
time1 in the same manner1 and to the    
same extent as in the case of any other 
rule of that ,house4