COMPUTATION OF ADDITIONAL PBGC PREMIUM.

SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM. (a) Phase-Out of Variable Rate Premium Cap.— (1) In general.—Subparagraph (E) of section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is amended by striking clause (iv), and by redesignating clause (v) as clause (iv). (2) Effective date.— (A) In general.—The amendments made by this subsection shall be effective for plan years beginning on or after July 1, 1994. (B) Transition rule.— In the case of plan years beginning on or after July 1, 1994, and before July 1, 1996, the additional premium payable with respect to any participant by reason of the amendments made by this section shall not exceed the sum of— (i) $53, and (ii) the product derived by multiplying— (I) the excess (if any) of the amount determined under clause (i) of section 4006(a)(3)(E) of the Employee Retirement Income Security Act of 1974, over $53, by (II) the applicable percentage. For purposes of this subparagraph, the applicable percentage shall be the percentage specified in the following table: For the plan year beginning: The applicable percentage is: on or after but before July 1, 1994 July 1, 1995 20 percent July 1, 1995 July 1, 1996 60 percent (b) Interest Rate and Asset Valuation.— (1) Interest rate.— Subclause (II) of section 4006(a)(3)(E)(iii) of the Employee Retirement Income Security Act of 1974 is amended— (A) by striking “80 percent” and inserting “the applicable percentage”, and (B) by adding at the end the following new sentence: “For purposes of this subclause, the applicable percentage is 80 percent for plan years beginning before July 1, 1997, 85 percent for plan years beginning after June 30, 1997, and before the 1st plan year to which the first tables prescribed under section 302(d)(7)(C)(ii)(II) apply, and 100 percent for such 1st plan year and subsequent plan years.” 108 STAT. 5046 (2) Asset valuation.— Clause (iii) of section 4006(a)(3)(E) of such Act is amended— (A) by inserting “or (III)” after “subclause (II)” in subclause (I), and (B) by adding at the end the following new subclause: “(III) In the case of any plan year for which the applicable percentage under subclause (II) is 100 percent, the value of the plan’s assets used in determining unfunded current liability under subclause (I) shall be their fair market value.” (3) Effective date.—The amendments made by this subsection shall apply to plan years beginning after the date of the enactment of this Act (c) Transition Rule for Certain Regulated Public Utilities.— In the case of a regulated public utility described in section 7701(a)(33)(A)(i) of the Internal Revenue Code of 1986, the amendments made by this section shall not apply to plan years beginning before the earlier of— (1) January 1, 1998, or (2) the date the regulated public utility begins to collect from utility customers rates that reflect the costs incurred or projected to be incurred for additional premiums under section 4006(a)(3)(E) of the Employee Retirement Income Security Act of 1974 pursuant to final and nonappealable determinations by all public utility commissions (or other authorities having jurisdiction over the rates and terms of service by the regulated public utility) that the costs are just and reasonable and recoverable from customers of the regulated public utility.