Sec. 703. PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES
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## SEC. 703 PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES ###
(a)Flat-Rate Premium Increases Section 4006(a)(3)(A)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)(i)) is amended— ####
(1)in subclause (II), by striking “and” at the end; ####
(2)in subclause (III), by inserting “and before January 1, 2015,” after “December 31, 2013”; and ####
(3)by inserting after subclause
(III)the following: > > ###### “(IV) > > for plan years beginning after December 31, 2014, and before January 1, 2016, $57; and > > > ###### “(V) > > for plan years beginning after December 31, 2015, and before January 1, 2017, $64.” > . ###
(b)Flat-Rate Premium Rate Indexed to Wages ####
(1)In general Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended— #####
(A)by redesignating subparagraphs
(G)through
(J)as subparagraphs
(H)through (K), respectively; and #####
(B)by inserting after subparagraph
(F)the following: > > ##### “(G) > > For each plan year beginning in a calendar year after 2016, there shall be substituted for the premium rate specified in clause
(i)of subparagraph
(A)an amount equal to the greater of— > > > ###### “(i) > > the product derived by multiplying the premium rate specified in clause
(i)of subparagraph
(A)by the ratio of— > > > ###### “(I) > > the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to > > > ###### “(II) > > the national average wage index (as so defined) for 2014; and > > > ###### “(ii) > > the premium rate in effect under clause
(i)of subparagraph
(A)for plan years beginning in the preceding calendar year. > > If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.” > . ####
(2)Conforming amendments Section 4006(a)(3)(F) of such Act (29 U.S.C. 1306(a)(3)(F)) is amended— #####
(A)in the matter before clause (i), by inserting “and before 2013” after “after 2006”; and #####
(B)in the flush text following clause (ii), by striking the second sentence. ###
(c)Variable Rate Premium Increases ####
(1)In general Section 4006(a)(8)(C) of such Act (29 U.S.C. 1306(a)(8)(C)) is amended— #####
(A)in clause (i), by striking “and” at the end; #####
(B)in clause (ii), by striking “$5.” and inserting “$10; and”; and #####
(C)by adding at the end the following: > > ###### “(iii) > > in the case of plan years beginning in calendar year 2016, by $5.” > . ####
(2)Conforming amendments Section 4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) is amended— #####
(A)in subparagraph (A)— ######
(i)in clause (ii), by striking “and” at the end; ######
(ii)in clause (iii), by striking the period at the end and inserting “; and”; and ######
(iii)by adding at the end the following: > > ###### “(iv) > > for plan years beginning after calendar year 2016, the amount in effect for plan years beginning in 2016 (determined after application of subparagraph (C)).” > ; and #####
(B)in subparagraph (D)— ######
(i)in clause (ii), by striking “and” at the end; ######
(ii)in clause (iii), by striking the period at the end and inserting “; and”; and ######
(iii)by adding at the end the following: > > ###### “(iv) > > 2014, in the case of plan years beginning after calendar year 2016.” > . ###
(d)Increase in Variable Rate Premium Cap ####
(1)In general Section 4006(a)(3)(E)(i) of such Act (29 U.S.C. 1306(a)(3)(E)(i)) is amended— #####
(A)in subclause (I), by striking “and” at the end; #####
(B)in subclause (II)— ######
(i)by inserting “and before 2016” after “2012”; and ######
(ii)by striking the period at the end and inserting “and”; and #####
(C)by adding at the end the following: > > ###### “(III) > > in the case of plan years beginning in a calendar year after 2015, shall not exceed $500.” > . ####
(2)Index to wages Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended— #####
(A)in subparagraph
(K)(as redesignated by subsection (b)(1)(A)), by inserting “and before 2016” after “2013”; and #####
(B)by inserting at the end the following: > > ##### “(L) > > For each plan year beginning in a calendar year after 2016, there shall be substituted for the dollar amount specified in subclause
(III)of subparagraph (E)(i) an amount equal to the greater of— > > > ###### “(i) > > the product derived by multiplying such dollar amount by the ratio of— > > > ###### “(I) > > the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 2 calendar years preceding the calendar year in which such plan year begins, to > > > ###### “(II) > > the national average wage index (as so defined) for 2014; and > > > ###### “(ii) > > such dollar amount for plan years beginning in the preceding calendar year. > > If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.” > . ###
(e)Effective Date The amendments made by this section shall apply to plan years beginning after December 31, 2013.
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Sec. 703
PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES
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