PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES.

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.