Pension Plan Reform Act

Pension Plan Reform Act - Title I: General Provisions - Declares it to be the policy of this Act to protect interstate commerce, the Federal taxing power, and the interests of participants in private pension plans and their beneficiaries by improving the equitable character and the soundness of such plans by requiring them to vest the accrued benefits of employees with significant periods of service, to meet minimum standards of funding, and to protect the vested rights of participants against losses due to involuntary plan termination through the establishment of vested liability insurance.

Title II: Vesting - Provides that this title shall apply to any employee pension benefit plan: (1) if it is established or maintained by employees engaged in commerce or in any industry or activity affecting commerce or by such employer together with any employee organization representing employees engaged in commerce or in any industry or activity affecting commerce; (2) if such plan is established or maintained by any employer or by any employer together with any employee organization and if, in the course of its activities, such plan, directly or indirectly, uses any means or instruments of transportation or communication in interstate commerce or the mails; and (3) such plan is established or maintained by a State, a political subdivision of a State, or an agency or instrumentality of either.

Provides that every pension plan subject to this title shall provide for nonforfeitable rights to regular retirement benefits when the plan has been in effect for five years or more, as follows: (1) every pension plan created before the date of enactment of this Act shall provide, with certain alternatives, that the rights of employees to receive benefits are nonforfeitable; (2) every pension plan created on or after the date of enactment of this Act shall provide that the rights of the employees to receive benefits shall be nonforfeitable; (3) with respect to a pension plan created or operated under a collective bargaining agreement in existence as of the date of enactment of this Act but due to expire after the effective date of this title, the provisions of this title shall apply after the expiration date of such collective bargaining agreement but in no event later than one year after the effective date of this title; (4) no otherwise nonforfeitable benefit shall be forfeited or impaired by any plan provision which would impose a condition subsequent to the receipt of such benefit, and nothing contained in this title shall be construed to disallow any plan provision adopted pursuant to regulations of the Secretary of the Treasury or his delegate to preclude discrimination in the event of early termination of a plan; and (5) no pension plan subject to this title to which employees contribute shall provide for forfeiture of benefits which are accrued during participation in the plan by the employee and which were attributable to employer contributions, solely because of withdrawal by such employee of amounts attributable to his own contributions.

Title III: Funding - Provides that this title shall apply to pension plans covered by title II. Sets forth a schedule for funding pension plans subject to this title, including a minimum ratio of assets to vested liabilities to be maintained in such plans.

Requires the administrators of plans covered by this title to file periodic statements with the Secretary of Labor containing the following information: (1) the amount of normal cost since inception of the plan plus interest on any unfunded past service costs; (2) the total amount of the plan's vested liabilities at the close of its preceding fiscal year; (3) the assets held by the plan as of the close of its preceding fiscal year valued at market value or by any other method approved by the Secretary pursuant to regulation; (4) the number of years the plan has been in effect; (5) a statement of the amount, if any, by which the assets held by the plan either exceed or fall below the amount of assets required in order for the plan to meet the funding ratio required under this title; and (6) such other information determined by the Secretary by regulation to be necessary for adequate disclosure of a plan's funding status.

Provides that when the contributions to a pension plan full below amounts necessary to meet the requirements of this title, the Secretary shall require by order that the administrator take such steps as the Secretary shall find necessary to guarantee that the rights of each participant to benefits accrued to the date of such failure to make appropriate contributions, or the rights of each participant to the amounts credited to his account at such time are nonforfeitable in the event of the participant's termination.

Provides that when a pension plans ratio of assets to vested liabilities falls below the funding ratio required for five consecutive years the Secretary shall require by order that the administrator take such steps as the Secretary shall find necessary to suspend further accumulation of vested liabilities until such time as the funding deficiency has been removed.

Title IV: Vested Liability Insurance - Provides that this title shall apply to any employee benefit pension plan to which title III applies.

Provides that every pension plan required to meet a specified funding ratio in accordance with this Act shall obtain insurance covering unfunded vested liabilities to protect participants and beneficiaries against possible loss of vested benefits arising from an essentially involuntary termination of the plan.

Sets forth the requirements for paying premiums and making claims under such insurance.

Title V: Pension Benefit Insurance Corporation - Creates a Pension Benefit Insurance Corporation which shall insure the vested liabilities of pension plans subject to title IV.

Establishes within the United States Treasury a separate fund for pension benefit insurance which shall be available to the Corporation without fiscal year limitation for the purposes of this title. Authorizes to be appropriated such sums as are necessary to provide capital for the fund.

Title VI: Miscellaneous - Provides that the Secretary on his own motion or after having received the petition of an administrator may, after giving interested persons an opportunity to be heard, prescribe an alternative method for satisfying the requirements of titles II or III, or both, with respect to any pension plan or any type of pension plan subject to titles II or III.

Provides that whenever it shall appear to the Secretary that any person is engaged or about to engage in any acts or practices that constitute or will constitute a violation of any provision of titles II, III, or VI or of any regulation, variation, or order issued thereunder, he may in his discretion bring an action in the proper district court of the United States or United States to enjoin such acts or practices, and upon a proper showing a permanent or temporary injunction or restraining order shall be granted.

Prescribes penalties of up to $10,000 and/or imprisonment for five years for listed violations of this Act. Provides that a fine imposed for a violation of this Act by a person not an individual shall not exceed $200,000.

Authorizes to be appropriated such sums as may be necessary to enable the Secretary to carry out his functions and duties under this Act.