SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rightsizing Pension Premiums Act of 
2017''.

SEC. 2. RIGHTSIZING PENSION PREMIUMS.

    (a) In General.--Section 4006(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1306(a)) is amended by adding at the 
end the following:
            ``(9) Premium adjustments for small employers and based on 
        pbgc funded percentage.--
                    ``(A) In general.--Notwithstanding paragraph 
                (3)(A)(i) and subject to subparagraphs (B) and (C), the 
                annual premium rate payable to the corporation by a 
                single-employer plan for basic benefits guaranteed 
                under this title is--
                            ``(i) in the case of a single-employer plan 
                        for any plan year beginning in a fiscal year 
                        with respect to which the average of the 
                        single-employer pension insurance program 
                        funded percentages for the 2 fiscal years 
                        immediately preceding such fiscal year is 110 
                        percent or greater, an amount for each 
                        individual who is a participant in such plan 
                        during the plan year equal to the sum of $19 
                        and an additional premium equal to the quotient 
                        (not to exceed $500) obtained by dividing--
                                    ``(I) an amount equal to $9 for 
                                each $1,000 (or fraction thereof) of 
                                unfunded vested benefits under the plan 
                                as of the close of the preceding plan 
                                year, by
                                    ``(II) the number of participants 
                                in such plan as of the close of the 
                                preceding plan year;
                            ``(ii) in the case of a single-employer 
                        plan for any plan year beginning in a fiscal 
                        year with respect to which the average of the 
                        single-employer pension insurance program 
                        funded percentages for the 2 fiscal years 
                        immediately preceding such fiscal year is at 
                        least 100 percent but less than 110 percent, an 
                        amount for each individual who is a participant 
                        in such plan during the plan year equal to the 
                        sum of $30 and an additional premium equal to 
                        the quotient (not to exceed $500) obtained by 
                        dividing--
                                    ``(I) an amount equal to $9 for 
                                each $1,000 (or fraction thereof) of 
                                unfunded vested benefits under the plan 
                                as of the close of the preceding plan 
                                year, by
                                    ``(II) the number of participants 
                                in such plan as of the close of the 
                                preceding plan year;
                            ``(iii) in the case of a single-employer 
                        plan for any plan year beginning in a fiscal 
                        year with respect to which the average of the 
                        single-employer pension insurance program 
                        funded percentages for the 2 fiscal years 
                        immediately preceding such fiscal year is at 
                        least 90 percent but less than 100 percent, an 
                        amount for each individual who is a participant 
                        in such plan during the plan year equal to the 
                        sum of $64 and an additional premium equal to 
                        the quotient (not to exceed $500) obtained by 
                        dividing--
                                    ``(I) an amount equal to $28 for 
                                each $1,000 (or fraction thereof) of 
                                unfunded vested benefits under the plan 
                                as of the close of the preceding plan 
                                year, by
                                    ``(II) the number of participants 
                                in such plan as of the close of the 
                                preceding plan year;
                            ``(iv) notwithstanding clauses (i) through 
                        (iii), in the case of a CSEC plan (as defined 
                        in section 210(f)) or single-employer plan 
                        maintained by a small employer for any plan 
                        year, an amount for each individual who is a 
                        participant in such plan during the plan year 
                        equal to the sum of $19 and an additional 
                        premium equal to the quotient (not to exceed 
                        $500) obtained by dividing--
                                    ``(I) an amount equal to $9 for 
                                each $1,000 (or fraction thereof) of 
                                unfunded vested benefits under the plan 
                                as of the close of the preceding plan 
                                year, by
                                    ``(II) the number of participants 
                                in such plan as of the close of the 
                                preceding plan year; and
                            ``(v) in any other case, the amount 
                        determined under paragraph (3)(A)(i).
                    ``(B) Small employer premium phase-out.--
                            ``(i) In general.--In the case of a single-
                        employer plan maintained by an employer who has 
                        more than 500 employees but not more than 600 
                        employees on the first day of the plan year, 
                        the annual premium rate payable to the 
                        corporation by such plan for basic benefits 
                        guaranteed under this title is an amount for 
                        each individual who is a participant in such 
                        plan during the plan year equal to the sum of--
                                    ``(I) the annual premium rate that 
                                would be so payable by such plan if 
                                such plan were maintained by a small 
                                employer for such plan year, plus--
                                    ``(II) the applicable percentage of 
                                the excess of--
                                            ``(aa) the annual premium 
                                        rate so payable by such plan 
                                        without regard to this 
                                        subparagraph, over
                                            ``(bb) the annual premium 
                                        rate that would be so payable 
                                        by such plan as described under 
                                        subclause (I).
                            ``(ii) Applicable percentage.--For purposes 
                        of this subparagraph, the `applicable 
                        percentage' is the ratio (expressed as a 
                        percentage) of--
                                    ``(I) the number of employees of 
                                the employer to the extent such number 
                                exceeds 500, over
                                    ``(II) 100.
                    ``(C) Special rule for multiple employer plans.--In 
                the case of a multiple employer plan (other than a CSEC 
                plan (as defined in section 210(f))), the annual 
                premium rate payable to the corporation by such plan 
                for basic benefits guaranteed under this title is the 
                sum of the annual premiums that, if each employer 
                maintaining such plan were treated as maintaining a 
                separate plan in which--
                            ``(i) the number of participants equals the 
                        number of participants in the multiple employer 
                        plan who are employed (or formerly employed) by 
                        such employer, and
                            ``(ii) the amount of unfunded vested 
                        benefits equals the portion of the unfunded 
                        vested benefits under the multiple employer 
                        plan attributable to such employer,
                would be imposed on each separate plan in accordance 
                with this section. In determining the annual premiums 
                that would be imposed on each of the separate plans 
                described under this subparagraph, the determination of 
                whether an employer is a small employer shall be made 
                separately with respect to each employer maintaining 
                the multiple employer plan.
                    ``(D) Special rule for small employers with 25 or 
                fewer employees.--In the case of a single-employer plan 
                maintained by a small employer who has 25 or fewer 
                employees on the first day of the plan year (as 
                determined under paragraph (3)(I)(ii)), the additional 
                premium otherwise determined under subparagraph (A)(iv) 
                shall not exceed $5 multiplied by the number of 
                participants in the plan as of the close of the 
                preceding plan year.
                    ``(E) Wage indexing of certain amounts.--For each 
                plan year beginning in a calendar year after 2018, 
                there shall be substituted for each of the first and 
                second dollar amounts in clause (ii) of subparagraph 
                (A) and the first, second, and third dollar amounts in 
                clause (iii) of such subparagraph an amount equal to 
                the greater of--
                            ``(i) the product derived by multiplying 
                        each such 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 2016; and
                            ``(ii) each such amount as in effect for 
                        plan years beginning in the preceding calendar 
                        year.
                If any amount determined under this subparagraph is not 
                a multiple of $1, such product shall be rounded to the 
                nearest multiple of $1.
                    ``(F) Definitions.--For purposes of this paragraph:
                            ``(i) Small employer.--The term `small 
                        employer' means an employer who has 500 or 
                        fewer employees on the first day of the plan 
                        year.
                            ``(ii) Multiple employer plan.--The term 
                        `multiple employer plan' means a single-
                        employer plan maintained by more than one 
                        employer (as determined under section 210(a)).
                            ``(iii) Single-employer pension insurance 
                        program funded percentage.--The term `single-
                        employer pension insurance program funded 
                        percentage' for a fiscal year means the ratio 
                        (expressed as a percentage) of--
                                    ``(I) the value of all assets held 
                                by the corporation in any trust or 
                                revolving fund on the last day of such 
                                fiscal year available for the payment 
                                of basic benefits guaranteed under 
                                section 4022, to
                                    ``(II) the present value (as 
                                determined in accordance with section 
                                303(h) without regard to paragraph 
                                (2)(C)(iv)) of the liabilities of the 
                                corporation attributable to such 
                                guaranteed benefits on the last day of 
                                such fiscal year.
                            ``(iv) Unfunded vested benefits.--The term 
                        `unfunded vested benefits' has the meaning 
                        given such term in paragraph (3)(E)(iii), 
                        except that with respect to a CSEC plan (as 
                        defined in section 210(f)), such term means the 
                        excess of--
                                    ``(I) the plan's funding liability 
                                (as defined in section 306(j)(5)(C)), 
                                determined by only taking into account 
                                vested benefits, over
                                    ``(II) the fair market value of 
                                plan assets for the plan year which are 
                                held by the plan on the valuation 
                                date.''.
    (b) Individuals Participating in More Than One Plan.--Section 
4006(a)(3)(B) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1306(a)(3)(B)) is amended by inserting ``or paragraph (9)'' 
after ``subparagraph (A)(i)''.
    (c) Conforming Amendment.--Section 4006(a)(3)(A) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1306) is amended in 
the matter preceding clause (i) by inserting ``and paragraph (9)'' 
after ``subparagraph (C)''.
    (d) Effective Date.--The amendments made by this shall apply with 
respect to plan years beginning after December 31, 2017.

SEC. 3. CORRECTION OF THE BUDGET EFFECTS OF PREMIUM CHANGES.

    (a) In General.--In the Senate and the House of Representatives, 
for purposes of determining points of order under the Congressional 
Budget Act of 1974 (2 U.S.C. 621 et seq.) or any concurrent resolution 
on the budget, any provision that increases or decreases, or extends 
the increase or decrease of, any premiums payable to the Pension 
Benefit Guaranty Corporation shall not be counted in estimating the 
level of budget authority, outlays, or revenues--
            (1) in the Senate, for any bill, joint resolution, 
        amendment, amendment between the Houses, conference report, or 
        motion; or
            (2) in the House of Representatives, for any bill or joint 
        resolution, or amendment thereto or conference report thereon.
    (b) Rules of Senate and House of Representatives.--Congress adopts 
the provisions of this section--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and as such is 
        deemed a part of the rules of each House, respectively, and 
        supersede other rules only to the extent that they are 
        inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
Rightsizing Pension Premiums Act of 2017  This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to: (1) modify the formula that the Pension Benefit Guaranty Corporation (PBGC) uses to calculate the funded percentage of single-employer pension plans, and (2) reduce single-employer PBGC premiums for pension plans that are sponsored by certain small employers or have specified PBGC funded percentages. The bill also prohibits the budget effects of provisions that change PBGC premiums from being counted for the purposes of determining budget points of order for legislation in the House or the Senate.  (The PBGC is a federal agency that insures the benefits of private sector, defined benefit pension plans. The PBGC is financed by insurance premiums paid by sponsors of the plans, investment income, assets from pension plans taken over by the PBGC, and recoveries from the companies formerly responsible for the plans.) 
Rightsizing Pension Premiums Act of 2017