A bill to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1954 to ensure that a defined benefit plan under which benefits are based on final average compensation does not fail to meet either the benefit accrual requirements thereunder, or the standards for reasonableness of actuarial assumptions in meeting funding requirements thereunder, solely by reason of allowing certain elections and revocations thereof affecting benefit accruals, if the relevant actuarial assumptions under the plan are made under the individual level premium cost method.

Amends the benefit accrual requirements of defined benefit plans under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code to include: (1) the use of the individual level premium cost method to establish the annual actuarial cost of plan benefits and expenses; and (2) the requirement that accrued benefits upon separation from service be not less than the actuarial accumulated value of the normal costs of such benefits for all periods before the separation.

Declares that certain actuarial methods of computing a participant's current or future benefit accruals under a defined benefit plan shall not be deemed unreasonable solely because such methods account only for anticipated compensation in computing such accruals. Specifies the plans to which such methods are applicable.