CASH BALANCE.

SEC. 348. CASH BALANCE.(a) Amendment of Internal Revenue Code of 1986.—Section 411(b) is amended by adding at the end the following new paragraph:“(6) Projected interest crediting rate.—For purposes of subparagraphs (A), (B), and (C) of paragraph (1), in the case of an applicable defined benefit plan (as defined in subsection (a)(13)(C)) which provides variable interest crediting rates, the interest crediting rate which is treated as in effect and as the projected interest crediting rate shall be a reasonable projection of such variable interest crediting rate, not to exceed 6 percent.” . (b) Amendment of Employee Retirement Income Security Act of 1974.—Section 204(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1060(b)) is amended by adding at the end the following new paragraph:“(6) Projected interest crediting rate.—For purposes of subparagraphs (A), (B), and (C) of paragraph (1), in the case of an applicable defined benefit plan (within the meaning of section 203(f)(3)) which provides variable interest crediting rates, the interest crediting rate which is treated as in effect and as the projected interest crediting rate shall be a reasonable projection of such variable interest crediting rate, not to exceed 6 percent.” . (c) Effective Date.—The amendments made by this section shall apply with respect to plan years beginning after the date of enactment of this Act.