Air Line Pension Act of 2003

Air Line Pension Act of 2003 - Sets forth special funding requirements for certain pension plans maintained by commercial passenger air carriers (plans), notwithstanding any contrary provisions of the Internal Revenue Code or of the Employee Retirement Income Security Act of 1974 (ERISA).

Provides for such plans, if they have a funded percentage of less than 80 percent as of January 1, 2003, the following: (1) modifications of funding rules, including funded percentage, assumed interest rate for determining current liability, and estimation of current liability; (2) a moratorium on the deficit reduction contribution, under specified conditions; (3) a one-time amortization of 2008 unfunded current liability; and (4) recognition of a waiver in the deficit reduction contribution.

Provides for such plans, if they are maintained for benefit of the carrier's employees pursuant to a collective bargaining agreement and if they terminated during calendar year 2003, the following: (1) restoration by the Pension Benefit Guaranty Corporation (PBGC) to the plan's pre-termination status and transfer of control of plan assets and liabilities to the employer, unless the collective bargaining agreement provides that the plan should not be restored; (2) exclusion of any expected increase in current liability due to benefits accruing during each plan year; (3) amortization of unfunded amounts under the restoration payment schedule; (4) inapplicability of certain contribution requirements to a restored plan until a plan year beginning on the initial post-restoration valuation date, with modified required annual payments; and (5) resetting of funding standard account balances.

Limits PBGC liability with respect to certain plans under this Act.