[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7327 Enrolled Bill (ENR)]
H.R.7327
One Hundred Tenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Thursday,
the third day of January, two thousand and eight
An Act
To make technical corrections related to the Pension Protection Act of
2006, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Worker, Retiree,
and Employer Recovery Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF
2006
Sec. 100. References in title.
Subtitle A--Technical Corrections Related to the Pension Protection Act
of 2006
Sec. 101. Amendments related to Title I.
Sec. 102. Amendments related to title II.
Sec. 103. Amendments related to title III.
Sec. 104. Amendments related to title IV.
Sec. 105. Amendments related to title V.
Sec. 106. Amendments related to title VI.
Sec. 107. Amendments related to title VII.
Sec. 108. Amendments related to title VIII.
Sec. 109. Amendments related to title IX.
Sec. 110. Amendments related to title X.
Sec. 111. Amendments related to title XI.
Sec. 112. Effective date.
Subtitle B--Other Provisions
Sec. 121. Amendments Related to Sections 102 and 112 of the Pension
Protection Act of 2006.
Sec. 122. Modification of interest rate assumption required with respect
to certain small employer plans.
Sec. 123. Determination of market rate of return for governmental plans.
Sec. 124. Treatment of certain reimbursements from governmental plans
for medical care.
Sec. 125. Rollover of amounts received in airline carrier bankruptcy to
Roth IRAs.
Sec. 126. Determination of asset value for special airline funding
rules.
Sec. 127. Modification of penalty for failure to file partnership
returns.
Sec. 128. Modification of penalty for failure to file S corporation
returns.
TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS
Sec. 201. Temporary waiver of required minimum distribution rules for
certain retirement plans and accounts.
Sec. 202. Transition rule clarification.
Sec. 203. Temporary modification of application of limitation on benefit
accruals.
Sec. 204. Temporary delay of designation of multiemployer plans as in
endangered or critical status.
Sec. 205. Temporary extension of the funding improvement and
rehabilitation periods for multiemployer pension plans in
critical and endangered status for 2008 or 2009.
TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF
2006
SEC. 100. REFERENCES IN TITLE.
For purposes of this title:
(1) Amendment of 1986 code.--The term ``1986 Code'' means the
Internal Revenue Code of 1986.
(2) Amendment of erisa.--The term ``ERISA'' means the Employee
Retirement Income Security Act of 1974.
(3) 2006 act.--The term ``2006 Act'' means the Pension
Protection Act of 2006.
Subtitle A--Technical Corrections Related to the Pension Protection Act
of 2006
SEC. 101. AMENDMENTS RELATED TO TITLE I.
(a) Amendments Related to Sections 101 and 111.--
(1) Amendments to erisa.--
(A) Clause (i) of section 302(c)(1)(A) of ERISA is amended
by striking ``the plan is'' and inserting ``the plan are''.
(B) Section 302(c)(7) of ERISA is amended by inserting
``which reduces the accrued benefit of any participant'' after
``subsection (d)(2)'' in subparagraph (A).
(C) Section 302(d)(1) of ERISA is amended by striking ``,
the valuation date,''.
(2) Amendments to 1986 code.--
(A) Clause (i) of section 412(c)(1)(A) of the 1986 Code is
amended by striking ``the plan is'' and inserting ``the plan
are''.
(B) Section 412(c)(7) of the 1986 Code is amended by
inserting ``which reduces the accrued benefit of any
participant'' after ``subsection (d)(2)'' in subparagraph (A).
(C) Section 412(d)(1) of the 1986 Code is amended by
striking ``, the valuation date,''.
(b) Amendments Related to Sections 102 and 112.--
(1) Amendments to erisa.--
(A) Section 303(b) of ERISA is amended to read as follows:
``(b) Target Normal Cost.--For purposes of this section:
``(1) In general.--Except as provided in subsection (i)(2) with
respect to plans in at-risk status, the term `target normal cost'
means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are
expected to accrue or to be earned under the plan during
the plan year, plus
``(ii) the amount of plan-related expenses expected to
be paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For purposes
of this subsection, if any benefit attributable to services
performed in a preceding plan year is increased by reason of any
increase in compensation during the current plan year, the increase
in such benefit shall be treated as having accrued during the
current plan year.''.
(B) Section 303(c)(5)(B)(iii) of ERISA is amended by
inserting ``beginning'' before ``after 2008''.
(C) Section 303(c)(5)(B)(iv)(II) of ERISA is amended by
inserting ``for such year'' after ``beginning in 2007)''.
(D) Section 303(f)(4)(A) of ERISA is amended by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(E) Section 303(h)(2)(F) of ERISA is amended--
(i) by striking ``section 205(g)(3)(B)(iii)(I)) for
such month'' and inserting ``section 205(g)(3)(B)(iii)(I)
for such month)'', and
(ii) by striking ``subparagraph (B)'' and inserting
``subparagraph (C)''.
(F) Section 303(i) of ERISA is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are
expected to accrue or to be earned under the plan
during the plan year, determined using the additional
actuarial assumptions described in paragraph (1)(B),
plus
``(II) the amount of plan-related expenses expected
to be paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target
normal cost (determined without regard to this
paragraph) of the plan for the plan year'' and
inserting ``the amount determined under subsection
(b)(1)(A)(i) with respect to the plan for the plan
year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 303(j)(3) of ERISA--
(i) is amended by adding at the end of subparagraph (A)
the following new sentence: ``In the case of plan years
beginning in 2008, the funding shortfall for the preceding
plan year may be determined using such methods of
estimation as the Secretary of the Treasury may provide.'',
(ii) by adding at the end of subparagraph (E) the
following new clause:
``(iii) Plan with alternate valuation date.--The
Secretary of the Treasury shall prescribe regulations for
the application of this paragraph in the case of a plan
which has a valuation date other than the first day of the
plan year.'', and
(iii) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 303(k)(6)(B) of ERISA is amended by striking
``, except'' and all that follows and inserting a period.
(2) Amendments to 1986 code.--
(A) Section 430(b) of the 1986 Code is amended to read as
follows:
``(b) Target Normal Cost.--For purposes of this section:
``(1) In general.--Except as provided in subsection (i)(2) with
respect to plans in at-risk status, the term `target normal cost'
means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are
expected to accrue or to be earned under the plan during
the plan year, plus
``(ii) the amount of plan-related expenses expected to
be paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For purposes
of this subsection, if any benefit attributable to services
performed in a preceding plan year is increased by reason of any
increase in compensation during the current plan year, the increase
in such benefit shall be treated as having accrued during the
current plan year.''.
(B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended
by inserting ``beginning'' before ``after 2008''.
(C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is
amended by inserting ``for such year'' after ``beginning in
2007)''.
(D) Section 430(f) of the 1986 Code is amended--
(i) by striking ``as of the first day of the plan
year'' the second place it appears in the first sentence of
paragraph (3)(A),
(ii) by striking ``paragraph (2)'' in paragraph (4)(A)
and inserting ``paragraph (3)'',
(iii) by striking ``paragraph (1), (2), or (4) of
section 206(g)'' in paragraph (6)(B)(iii) and inserting
``subsection (b), (c), or (e) of section 436'',
(iv) by striking ``the sum of'' in paragraph (6)(C),
and
(v) by striking ``of the Treasury'' in paragraph (8).
(E) Section 430(h)(2) of the 1986 Code is amended--
(i) by inserting ``and target normal cost'' after
``funding target'' in subparagraph (B),
(ii) by striking ``liabilities'' and inserting
``benefits'' in subparagraph (B),
(iii) by striking ``section 417(e)(3)(D)(i)) for such
month'' in subparagraph (F) and inserting ``section
417(e)(3)(D)(i) for such month)'', and
(iv) by striking ``subparagraph (B)'' in subparagraph
(F) and inserting ``subparagraph (C)''.
(F) Section 430(i) of the 1986 Code is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are
expected to accrue or to be earned under the plan
during the plan year, determined using the additional
actuarial assumptions described in paragraph (1)(B),
plus
``(II) the amount of plan-related expenses expected
to be paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target
normal cost (determined without regard to this
paragraph) of the plan for the plan year'' and
inserting ``the amount determined under subsection
(b)(1)(A)(i) with respect to the plan for the plan
year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 430(j)(3) of the 1986 Code is amended--
(i) by adding at the end of subparagraph (A) the
following new sentence: ``In the case of plan years
beginning in 2008, the funding shortfall for the preceding
plan year may be determined using such methods of
estimation as the Secretary may provide.'',
(ii) by striking ``section 302(c)'' in subparagraph
(D)(ii)(II) and inserting ``section 412(c)'',
(iii) by adding at the end of subparagraph (E) the
following new clause:
``(iii) Plan with alternate valuation date.--The
Secretary shall prescribe regulations for the application
of this paragraph in the case of a plan which has a
valuation date other than the first day of the plan
year.'', and
(iv) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 430(k) of the 1986 Code is amended--
(i) by inserting ``(as provided under paragraph (2))''
after ``applies'' in paragraph (1), and
(ii) by striking ``, except'' and all that follows in
paragraph (6)(B) and inserting a period.
(3) Effective dates.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by paragraphs (1)(A), (1)(F)(i), (2)(A),
and (2)(F)(i) shall apply to plan years beginning after
December 31, 2008.
(B) Election for earlier application.--The amendments made
by such paragraphs shall apply to a plan for the first plan
year beginning after December 31, 2007, if the plan sponsor
makes the election under this subparagraph. An election under
this subparagraph shall be made at such time and in such manner
as the Secretary of the Treasury or the Secretary's delegate
may prescribe, and, once made, may be revoked only with the
consent of the Secretary.
(c) Amendments Related to Sections 103 and 113.--
(1) Amendments to erisa.--
(A) Section 101(j) of ERISA is amended--
(i) in paragraph (2), by striking ``section
206(g)(4)(B)'' and inserting ``section 206(g)(4)(A)''; and
(ii) by adding at the end the following: ``The
Secretary of the Treasury, in consultation with the
Secretary, shall have the authority to prescribe rules
applicable to the notices required under this
subsection.''.
(B) Section 206(g)(1)(B)(ii) of ERISA is amended by
striking ``a funding'' and inserting ``an adjusted funding''.
(C) The heading for section 206(g)(1)(C) of ERISA is
amended by inserting ``benefit'' after ``event''.
(D) Section 206(g)(3)(E) of ERISA is amended by adding at
the end the following new flush sentence:
``Such term shall not include the payment of a benefit which
under section 203(e) may be immediately distributed without the
consent of the participant.''.
(E) Section 206(g)(5)(A)(iv) of ERISA is amended by
inserting ``adjusted'' before ``funding''.
(F) Section 206(g)(9)(C) of ERISA is amended--
(i) by striking ``without regard to this subparagraph
and'' in clause (i), and
(ii) in clause (iii)--
(I) by striking ``without regard to this
subparagraph'' and inserting ``without regard to the
reduction in the value of assets under section
303(f)(4)'', and
(II) by inserting ``beginning'' before ``after''
each place it appears.
(G) Section 206(g) of ERISA is amended by redesignating
paragraph (10) as paragraph (11) and by inserting after
paragraph (9) the following new paragraph:
``(10) Secretarial authority for plans with alternate valuation
date.--In the case of a plan which has designated a valuation date
other than the first day of the plan year, the Secretary of the
Treasury may prescribe rules for the application of this subsection
which are necessary to reflect the alternate valuation date.''.
(H) Section 502(c)(4) of ERISA is amended by striking ``by
any person'' and all that follows through the period and
inserting ``by any person of subsection (j), (k), or (l) of
section 101 or section 514(e)(3).''.
(2) Amendments to 1986 code.--
(A) Section 436(b)(2) of the 1986 Code is amended--
(i) by striking ``section 303'' and inserting ``section
430'' in the matter preceding subparagraph (A), and
(ii) by striking ``a funding'' and inserting ``an
adjusted funding'' in subparagraph (B).
(B) Section 436(b)(3) of the 1986 Code is amended--
(i) by inserting ``benefit'' after ``event'' in the
heading, and
(ii) by striking ``any event'' in subparagraph (B) and
inserting ``an event''.
(C) Section 436(d)(5) of the 1986 Code is amended by adding
at the end the following new flush sentence:
``Such term shall not include the payment of a benefit which under
section 411(a)(11) may be immediately distributed without the
consent of the participant.''.
(D) Section 436(f) of the 1986 Code is amended--
(i) by inserting ``adjusted'' before ``funding'' in
paragraph (1)(D), and
(ii) by striking ``prefunding balance under section
430(f) or funding standard carryover balance'' in paragraph
(2) and inserting ``prefunding balance or funding standard
carryover balance under section 430(f)''.
(E) Section 436(j)(3) of the 1986 Code is amended--
(i) in subparagraph (A)--
(I) by striking ``without regard to this paragraph
and'',
(II) by striking ``section 430(f)(4)(A)'' and
inserting ``section 430(f)(4)'', and
(III) by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)'', and
(ii) in subparagraph (C)--
(I) by striking ``without regard to this
paragraph'' and inserting ``without regard to the
reduction in the value of assets under section
430(f)(4)'', and
(II) by inserting ``beginning'' before ``after''
each place it appears.
(F) Section 436 of the 1986 Code is amended by
redesignating subsection (k) as subsection (m) and by inserting
after subsection (j) the following new subsections:
``(k) Secretarial Authority for Plans With Alternate Valuation
Date.--In the case of a plan which has designated a valuation date
other than the first day of the plan year, the Secretary may prescribe
rules for the application of this section which are necessary to
reflect the alternate valuation date.
``(l) Single-Employer Plan.--For purposes of this section, the term
`single-employer plan' means a plan which is not a multiemployer
plan.''.
(3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and
113(b)(2)(A)(ii) of the 2006 Act are each amended--
(A) by striking ``subsection'' and inserting ``section'',
and
(B) by striking ``subparagraph'' and inserting
``paragraph''.
(d) Amendments Related to Sections 107 and 114.--
(1) Amendments to erisa.--
(A) Section 103(d) of ERISA is amended--
(i) in paragraph (3), by striking ``the normal costs,
the accrued liabilities'' and inserting ``the normal costs
or target normal costs, the accrued liabilities or funding
target'', and
(ii) by striking paragraph (7) and inserting the
following new paragraph:
``(7) A certification of the contribution necessary to reduce
the minimum required contribution determined under section 303, or
the accumulated funding deficiency determined under section 304, to
zero.''.
(B) Section 4071 of ERISA is amended by striking ``as
section 303(k)(4) or 307(e)'' and inserting ``or section
303(k)(4),''.
(2) Amendments to 1986 code.--
(A) Section 401(a)(29) of the 1986 Code is amended by
striking ``on plans in at-risk status'' in the heading.
(B) Section 401(a)(32)(C) of the 1986 Code is amended--
(i) by striking ``section 430(j)'' and inserting
``section 430(j)(3)'', and
(ii) by striking ``paragraph (5)(A)'' and inserting
``section 430(j)(4)(A)''.
(C) Section 401(a)(33) of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subparagraph
(B)(iii) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(b)(2) (without regard to
subparagraph (B) thereof)'' in subparagraph (D) and
inserting ``section 412(b)(1), without regard to section
412(b)(2)''.
(D) Section 411 of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subsection
(a)(3)(C) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(e)(2)'' in subsection
(d)(6)(A) and inserting ``section 412(d)(2)''.
(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended
to read as follows:
``(I) the sum of the funding target and target
normal cost determined under section 430, over''.
(F) Section 4971 of the 1986 Code is amended--
(i) by striking ``required minimum'' in subsection
(b)(1) and inserting ``minimum required'',
(ii) by inserting ``or unpaid minimum required
contribution, whichever is applicable'' after ``accumulated
funding deficiency'' each place it appears in subsections
(c)(3) and (d)(1), and
(iii) by striking ``section 412(a)(1)(A)'' in
subsection (e)(1) and inserting ``section 412(a)(2)''.
(3) Amendment to 2006 act.--Section 114 of the 2006 Act is
amended by adding at the end the following new subsection:
``(g) Effective Dates.--
``(1) In general.--The amendments made by this section shall
apply to plan years beginning after 2007.
``(2) Excise tax.--The amendments made by subsection (e) shall
apply to taxable years beginning after 2007, but only with respect
to plan years described in paragraph (1) which end with or within
any such taxable year.''.
(e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of
the 1986 Code is amended by inserting ``to an applicable covered
employee'' after ``under the plan''.
SEC. 102. AMENDMENTS RELATED TO TITLE II.
(a) Amendment Related to Sections 201 and 211.--Section
201(b)(2)(A) of the 2006 Act is amended by striking ``has not used''
and inserting ``has not adopted, or ceased using,''.
(b) Amendments Related to Sections 202 and 212.--
(1) Amendments to erisa.--
(A) Section 302(b)(3) of ERISA is amended by striking ``the
plan adopts'' and inserting ``the plan sponsor adopts''.
(B) Section 305(b)(3)(C) of ERISA is amended by striking
``section 101(b)(4)'' and inserting ``section 101(b)(1)''.
(C) Section 305(b)(3)(D) of ERISA is amended by striking
``The Secretary'' in clause (iii) and inserting ``The Secretary
of the Treasury, in consultation with the Secretary''.
(D) Section 305(c)(7) of ERISA is amended--
(i) by striking ``to agree on'' and all that follows in
subparagraph (A)(ii) and inserting ``to adopt a
contribution schedule with terms consistent with the
funding improvement plan and a schedule from the plan
sponsor,'', and
(ii) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.'', and
(iii) by adding at the end the following new
subparagraph:
``(C) Failure to make scheduled contributions.--Any failure
to make a contribution under a schedule of contribution rates
provided under this paragraph shall be treated as a delinquent
contribution under section 515 and shall be enforceable as
such.''.
(E) Section 305(e) of ERISA is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in
clause (i)(II) and inserting ``to adopt a contribution
schedule with terms consistent with the rehabilitation
plan and a schedule from the plan sponsor under
paragraph (1)(B)(i),'',
(II) by striking clause (ii) and inserting the
following new clause:
``(ii) Date of implementation.--The date specified in
this clause is the date which is 180 days after the date on
which the collective bargaining agreement described in
clause (i) expires.'', and
(III) by adding at the end the following new
clause:
``(iii) Failure to make scheduled contributions.--Any
failure to make a contribution under a schedule of
contribution rates provided under this subsection shall be
treated as a delinquent contribution under section 515 and
shall be enforceable as such.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph
(A)(ii), and
(II) by striking ``and taking'' in subparagraph (B)
and inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and
inserting ``the last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)(C)(iii)--
(I) by striking ``the Secretary'' in subclause (I)
and inserting ``the Secretary of the Treasury, in
consultation with the Secretary'', and
(II) by striking ``Secretary'' in the last sentence
and inserting ``Secretary of the Treasury'', and
(v) by striking ``an employer's withdrawal liability''
in paragraph (9)(B) and inserting ``the allocation of
unfunded vested benefits to an employer''.
(F) Section 305(f)(2)(A)(i) of ERISA is amended by adding
at the end the following: ``to a participant or beneficiary
whose annuity starting date (as defined in section 205(h)(2))
occurs after the date such notice is sent,''.
(G) Section 305(g) of ERISA is amended by inserting ``under
subsection (c)'' after ``funding improvement plan'' the first
place it appears.
(H) Section 502(c)(2) of ERISA is amended by striking
``101(b)(4)'' and inserting ``101(b)(1)''.
(I) Section 502(c)(8)(A) of ERISA is amended by inserting
``plan'' after ``multiemployer''.
(2) Amendments to 1986 code.--
(A) Section 432(b)(3)(C) of the 1986 Code is amended by
striking ``section 101(b)(4)'' and inserting ``section
101(b)(1)''.
(B) Section 432(b)(3)(D)(iii) of the 1986 Code is amended
by striking ``The Secretary of Labor'' and inserting ``The
Secretary, in consultation with the Secretary of Labor''.
(C) Section 432(c) of the 1986 Code is amended--
(i) in paragraph (3), by striking ``section 304(d)'' in
subparagraph (A)(ii) and inserting ``section 431(d)'', and
(ii) in paragraph (7)--
(I) by striking ``to agree on'' and all that
follows in subparagraph (A)(ii) and inserting ``to
adopt a contribution schedule with terms consistent
with the funding improvement plan and a schedule from
the plan sponsor,'', and
(II) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.''.
(D) Section 432(e) of the 1986 Code is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in
clause (i)(II) and inserting ``to adopt a contribution
schedule with terms consistent with the rehabilitation
plan and a schedule from the plan sponsor under
paragraph (1)(B)(i),'', and
(II) by striking clause (ii) and inserting the
following new clause:
``(ii) Date of implementation.--The date specified in
this clause is the date which is 180 days after the date on
which the collective bargaining agreement described in
clause (i) expires.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph
(A)(ii), and
(II) by striking ``and taking'' in subparagraph (B)
and inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and
inserting ``the last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)--
(I) by striking ``section 204(g)'' in subparagraph
(A)(i) and inserting ``section 411(d)(6)'',
(II) by inserting ``of the Employee Retirement
Income Security Act of 1974'' after ``4212(a)'' in
subparagraph (C)(i)(II),
(III) by striking ``the Secretary of Labor'' in
subparagraph (C)(iii)(I) and inserting ``the Secretary,
in consultation with the Secretary of Labor'', and
(IV) by striking ``the Secretary of Labor'' in the
last sentence of subparagraph (C)(iii) and inserting
``the Secretary'', and
(v) by striking ``an employer's withdrawal liability''
in paragraph (9)(B) and inserting ``the allocation of
unfunded vested benefits to an employer''.
(E) Section 432(f)(2)(A)(i) of the 1986 Code is amended--
(i) by striking ``section 411(b)(1)(A)'' and inserting
``section 411(a)(9)''; and
(ii) by inserting at the end the following: ``to a
participant or beneficiary whose annuity starting date (as
defined in section 417(f)(2)) occurs after the date such
notice is sent,''.
(F) Section 432(g) of the 1986 Code is amended by inserting
``under subsection (c)'' after ``funding improvement plan'' the
first place it appears.
(G) Section 432(i) of the 1986 Code is amended--
(i) by striking ``section 412(a)'' in paragraph (3) and
inserting ``section 431(a)'', and
(ii) by striking paragraph (9) and inserting the
following new paragraph:
``(9) Plan sponsor.--For purposes of this section, section 431,
and section 4971(g):
``(A) In general.--The term `plan sponsor' means, with
respect to any multiemployer plan, the association, committee,
joint board of trustees, or other similar group of
representatives of the parties who establish or maintain the
plan.
``(B) Special rule for section 404(c) plans.--In the case
of a plan described in section 404(c) (or a continuation of
such plan), such term means the bargaining parties described in
paragraph (1).''.
(H) Section 412(b)(3) of the 1986 Code is amended by
striking ``the plan adopts'' and inserting ``the plan sponsor
adopts''.
(I) Section 4971(g)(4) of the 1986 Code is amended--
(i) in subparagraph (B)(ii), by striking ``first day
of'' and inserting ``day following the close of'', and
(ii) by striking clause (ii) of subparagraph (C) and
inserting the following new clause:
``(ii) Plan sponsor.--For purposes of clause (i), the
term `plan sponsor' has the meaning given such term by
section 432(i)(9).''.
(3) Amendments to 2006 act.--
(A) Section 212(b)(2) of the 2006 Act is amended by
striking ``Section 4971(c)(2) of such Code'' and inserting
``Section 4971(e)(2) of such Code''.
(B) Section 212(e)(1) of the 2006 Act is amended by
inserting ``, except that the amendments made by subsection (b)
shall apply to taxable years beginning after 2007, but only
with respect to plan years beginning after 2007 which end with
or within any such taxable year'' before the period at the end.
(C) Section 212(e)(2) of the 2006 Act is amended by
striking ``section 305(b)(3) of the Employee Retirement Income
Security Act of 1974'' and inserting ``section 432(b)(3) of the
Internal Revenue Code of 1986''.
SEC. 103. AMENDMENTS RELATED TO TITLE III.
(a) Amendment Related to Section 301.--Clause (ii) of section
101(c)(2)(A) of the Pension Funding Equity Act of 2004, as amended by
section 301(c) of the 2006 Act, is amended by striking ``2008'' and
inserting ``2009''.
(b) Amendments Related to Section 302.--
(1) Amendment to erisa.--Section 205(g)(3)(B)(iii)(II) of ERISA
is amended by striking ``section 205(g)(3)(B)(iii)(II)'' and
inserting ``section 205(g)(3)(A)(ii)(II)''.
(2) Amendments to 1986 code.--
(A) Section 417(e)(3)(D)(i) of the 1986 Code is amended by
striking ``clause (ii)'' and inserting ``subparagraph (C)''.
(B)(i) Section 415(b)(2)(E)(v) of the 1986 Code is amended
to read as follows:
``(v) For purposes of adjusting any benefit or
limitation under subparagraph (B), (C), or (D), the
mortality table used shall be the applicable mortality
table (within the meaning of section 417(e)(3)(B)).''.
(ii)(I) Except as provided in subclause (II), the amendment
made by clause (i) shall apply to years beginning after
December 31, 2008.
(II) A plan sponsor may elect to have the amendment made by
clause (i) apply to any year beginning after December 31, 2007,
and before January 1, 2009, or to any portion of any such year.
SEC. 104. AMENDMENTS RELATED TO TITLE IV.
(a) Amendment Related to Section 401.--Section 4006(a)(3)(A)(i) of
ERISA is amended by striking ``1990'' and inserting ``2005''.
(b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the
2006 Act is amended by striking ``commercial airline'' and inserting
``commercial''.
(c) Amendment Related to Section 408.--Section 4044(e) of ERISA, as
added by section 408(b)(2) of the 2006 Act, is redesignated as
subsection (f).
(d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of
ERISA is amended by striking ``subparagraph (B)'' and inserting
``subparagraphs (B) and (D)''.
(e) Amendments Related to Section 410.--Section 4050(d)(4)(A) of
ERISA is amended--
(1) by striking ``and'' at the end of clause (i), and
(2) by striking clause (ii) and inserting the following new
clauses:
``(ii) which is not a plan described in paragraph (2),
(3), (4), (6), (7), (8), (9), (10), or (11) of section
4021(b), and
``(iii) which, was a plan described in section 401(a)
of the Internal Revenue Code of 1986 which includes a trust
exempt from tax under section 501(a) of such Code, and''.
SEC. 105. AMENDMENTS RELATED TO TITLE V.
(a) Amendment Related to Section 501.--Section 101(f)(2)(B)(ii) of
ERISA is amended--
(1) by striking ``for which the latest annual report filed
under section 104(a) was filed'' in subclause (I)(aa) and inserting
``to which the notice relates'', and
(2) by striking subclause (II) and inserting the following new
subclause:
``(II) in the case of a multiemployer plan, a
statement, for the plan year to which the notice
relates and the preceding 2 plan years, of the value of
the plan assets (determined both in the same manner as
under section 304 and under the rules of subclause
(I)(bb)) and the value of the plan liabilities
(determined in the same manner as under section 304
except that the method specified in section 305(i)(8)
shall be used),''.
(b) Amendments Related to Section 502.--
(1) Section 101(k)(2) of ERISA is amended by filing at the end
the following new flush sentence:
``Subparagraph (C)(i) shall not apply to individually identifiable
information with respect to any plan investment manager or adviser,
or with respect to any other person (other than an employee of the
plan) preparing a financial report required to be included under
paragraph (1)(B).''.
(2) Section 4221 of ERISA is amended by striking subsection (e)
and by redesignating subsections (f) and (g) as subsections (e) and
(f), respectively.
(c) Amendments Related to Section 503.--
(1) Amendments to erisa.--
(A) Section 104(b)(3) of ERISA is amended by--
(i) striking ``section 103(f)'' and inserting ``section
101(f)'', and
(ii) striking ``the administrators'' and inserting
``the administrator''.
(B) Section 104(d)(1)(E)(ii) of ERISA is amended by
inserting ``funding'' after ``plan's''.
(2) Amendments to 2006 act.--Section 503(e) of the 2006 Act is
amended by striking ``section 101(f)'' and inserting ``section
104(d)''.
(d) Amendment Related to Section 505.--Section 4010(d)(2)(B) of
ERISA is amended by striking ``section 302(d)(2)'' and inserting
``section 303(d)(2)''.
(e) Amendments Related to Section 506.--
(1) Section 4041(c)(2)(D)(i) of ERISA is amended by striking
``subsection (a)(2)'' the second place it appears and inserting
``subparagraph (A) or the regulations under subsection (a)(2)''.
(2) Section 4042(c)(3)(C)(i) of ERISA is amended--
(A) by striking ``and plan sponsor'' and inserting ``, the
plan sponsor, or the corporation'', and
(B) by striking ``subparagraph (A)(i)'' and inserting
``subparagraph (A)''.
(f) Amendments Related to Section 508.--Section 209(a) of ERISA is
amended--
(1) in paragraph (1)--
(A) by striking ``regulations prescribed by the Secretary''
and inserting ``such regulations as the Secretary may
prescribe'', and
(B) by striking the last sentence and inserting ``The
report required under this paragraph shall be in the same form,
and contain the same information, as periodic benefit
statements under section 105(a).'', and
(2) by striking paragraph (2) and inserting the following:
``(2) If more than one employer adopts a plan, each such
employer shall furnish to the plan administrator the information
necessary for the administrator to maintain the records, and make
the reports, required by paragraph (1). Such administrator shall
maintain the records, and make the reports, required by paragraph
(1).''.
(g) Amendment Related to Section 509.--Section 101(i)(8)(B) of
ERISA is amended to read as follows:
``(B) One-participant retirement plan.--For purposes of
subparagraph (A), the term `one-participant retirement plan'
means a retirement plan that on the first day of the plan
year--
``(i) covered only one individual (or the individual
and the individual's spouse) and the individual (or the
individual and the individual's spouse) owned 100 percent
of the plan sponsor (whether or not incorporated), or
``(ii) covered only one or more partners (or partners
and their spouses) in the plan sponsor.''.
SEC. 106. AMENDMENTS RELATED TO TITLE VI.
(a) Amendments Related to Section 601.--
(1) Amendments to erisa.--
(A) Section 408(g)(3)(D)(ii) of ERISA is amended by
striking ``subsection (b)(14)(B)(ii)'' and inserting
``subsection (b)(14)(A)(ii)''.
(B) Section 408(g)(6)(A)(i) of ERISA is amended by striking
``financial adviser'' and inserting ``fiduciary adviser''.
(C) Section 408(g)(11)(A) of ERISA is amended--
(i) by striking ``the participant'' each place it
appears and inserting ``a participant'', and
(ii) by striking ``section 408(b)(4)'' in clause (ii)
and inserting ``subsection (b)(4)''.
(2) Amendments to 1986 code.--
(A) Section 4975(d)(17) of the 1986 Code, in the matter
preceding subparagraph (A), is amended by striking ``and that
permits'' and inserting ``that permits''.
(B) Section 4975(f)(8) of the 1986 Code is amended--
(i) in subparagraph (A), by striking ``subsection
(b)(14)'' and inserting ``subsection (d)(17)'',
(ii) in subparagraph (C)(iv)(II), by striking
``subsection (b)(14)(B)(ii)'' and inserting
``(d)(17)(A)(ii)'',
(iii) in subparagraph (F)(i)(I), by striking
``financial adviser'' and inserting ``fiduciary adviser,'',
(iv) in subparagraph (I), by striking ``section 406''
and inserting ``subsection (c)'', and
(v) in subparagraph (J)(i)--
(I) by striking ``the participant'' each place it
appears and inserting ``a participant'',
(II) in the matter preceding subclause (I), by
inserting ``referred to in subsection (e)(3)(B)'' after
``investment advice'', and
(III) in subclause (II), by striking ``section
408(b)(4)'' and inserting ``subsection (d)(4)''.
(3) Amendment to 2006 act.--Section 601(b)(4) of the 2006 Act
is amended by striking ``section 4975(c)(3)(B)'' and inserting
``section 4975(e)(3)(B)''.
(b) Amendments Related to Section 611.--
(1) Amendment to erisa.--Section 408(b)(18)(C) of ERISA is
amended by striking ``or less''.
(2) Amendments to 1986 code.--Section 4975(d) of the 1986 Code
is amended--
(A) in the matter preceding subparagraph (A) of paragraph
(18)--
(i) by striking ``party in interest'' and inserting
``disqualified person'', and
(ii) by striking ``subsection (e)(3)(B)'' and inserting
``subsection (e)(3)'',
(B) in paragraphs (19), (20), and (21), by striking ``party
in interest'' each place it appears and inserting
``disqualified person'', and
(C) by striking ``or less'' in paragraph (21)(C).
(c) Amendments Related to Section 612.--Section 4975(f)(11)(B)(i)
of the 1986 Code is amended by--
(1) inserting ``of the Employee Retirement Income Security Act
of 1974'' after ``section 407(d)(1)'', and
(2) inserting ``of such Act'' after ``section 407(d)(2)''.
(d) Amendments Related to Section 624.--Section 404(c)(5) of ERISA
is amended by striking ``participant'' each place it appears and
inserting ``participant or beneficiary''.
SEC. 107. AMENDMENTS RELATED TO TITLE VII.
(a) Amendments to ERISA.--
(1) Section 203(f)(1)(B) of ERISA is amended to read as
follows:
``(B) the requirements of section 204(c) or 205(g), or the
requirements of subsection (e), with respect to accrued
benefits derived from employer contributions,''.
(2) Section 204(b)(5) of ERISA is amended--
(A) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is
amended to read as follows:
``(II) Preservation of capital.--An applicable
defined benefit plan shall be treated as failing to
meet the requirements of paragraph (1)(H) unless the
plan provides that an interest credit (or equivalent
amount) of less than zero shall in no event result in
the account balance or similar amount being less than
the aggregate amount of contributions credited to the
account.''.
(b) Amendments to 1986 Code.--
(1) Section 411(b)(5) of the 1986 Code is amended--
(A) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(2) Section 411(a)(13)(A) of the 1986 Code is amended--
(A) by striking ``paragraph (2)'' in clause (i) and
inserting ``subparagraph (B)'',
(B) by striking clause (ii) and inserting the following new
clause:
``(ii) the requirements of subsection (a)(11) or (c),
or the requirements of section 417(e), with respect to
accrued benefits derived from employer contributions,'',
and
(C) by striking ``paragraph (3)'' in the matter following
clause (ii) and inserting ``subparagraph (C)''.
(3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986 Code
is amended to read as follows:
``(II) Preservation of capital.--An applicable
defined benefit plan shall be treated as failing to
meet the requirements of paragraph (1)(H) unless the
plan provides that an interest credit (or equivalent
amount) of less than zero shall in no event result in
the account balance or similar amount being less than
the aggregate amount of contributions credited to the
account.''.
(c) Amendments to 2006 Act.--
(1) Section 701(d)(2) of the 2006 Act is amended by striking
``204(g)'' and inserting ``205(g)''.
(2) Section 701(e) of the 2006 Act is amended--
(A) by inserting ``on or'' after ``period'' in paragraph
(3),
(B) in paragraph (4)--
(i) by inserting ``the earlier of'' after ``before'' in
the matter preceding subparagraph (A), and
(ii) by striking ``earlier'' and inserting ``later'' in
subparagraph (A),
(C) by inserting ``on or'' before ``after'' each place it
appears in paragraph (5), and
(D) by adding at the end the following new paragraph:
``(6) Special rule for vesting requirements.--The requirements
of section 203(f)(2) of the Employee Retirement Income Security Act
of 1974 and section 411(a)(13)(B) of the Internal Revenue Code of
1986 (as added by this Act)--
``(A) shall not apply to a participant who does not have an
hour of service after the effective date of such requirements
(as otherwise determined under this subsection); and
``(B) in the case of a plan other than a plan described in
paragraph (3) or (4), shall apply to plan years ending on or
after June 29, 2005.''.
SEC. 108. AMENDMENTS RELATED TO TITLE VIII.
(a) Amendments Related to Section 801.--
(1) Section 404(o) of the 1986 Code is amended--
(A) by striking ``430(g)(2)'' in paragraph (2)(A)(ii) and
inserting ``430(g)(3)'', and
(B) by striking ``412(f)(4)'' in paragraph (4)(B) and
inserting ``412(d)(3)''.
(2) Section 404(a)(7)(A) of the 1986 Code is amended--
(A) by striking the next to last sentence, and
(B) by striking ``the plan's funding shortfall determined
under section 430'' in the last sentence and inserting ``the
excess (if any) of the plan's funding target (as defined in
section 430(d)(1)) over the value of the plan's assets (as
determined under section 430(g)(3))''.
(b) Amendment Related to Section 802.--Section 404(a)(1)(D)(i) of
the 1986 Code is amended by striking ``431(c)(6)(C)'' and inserting
``431(c)(6)(D)''.
(c) Amendment Related to Section 803.--Clause (iii) of section
404(a)(7)(C) of the 1986 Code is amended to read as follows:
``(iii) Limitation.--In the case of employer
contributions to 1 or more defined contribution plans--
``(I) if such contributions do not exceed 6 percent
of the compensation otherwise paid or accrued during
the taxable year to the beneficiaries under such plans,
this paragraph shall not apply to such contributions or
to employer contributions to the defined benefit plans
to which this paragraph would otherwise apply by reason
of contributions to the defined contribution plans, and
``(II) if such contributions exceed 6 percent of
such compensation, this paragraph shall be applied by
only taking into account such contributions to the
extent of such excess.
For purposes of this clause, amounts carried over from
preceding taxable years under subparagraph (B) shall be
treated as employer contributions to 1 or more defined
contributions plans to the extent attributable to employer
contributions to such plans in such preceding taxable
years.''.
(d) Amendments Related to Section 824.--
(1) Section 408A(c)(3)(B) of the 1986 Code, as in effect after
the amendments made by section 824(b)(1) of the 2006 Act, is
amended--
(A) by striking the second ``an'' before ``eligible'',
(B) by striking ``other than a Roth IRA'', and
(C) by adding at the end the following new flush sentence:
``This subparagraph shall not apply to a qualified rollover
contribution from a Roth IRA or to a qualified rollover
contribution from a designated Roth account which is a rollover
contribution described in section 402A(c)(3)(A).''
(2) Section 408A(d)(3)(B), as in effect after the amendments
made by section 824(b)(2)(B) of the 2006 Act, is amended by
striking ``(other than a Roth IRA)'' and by inserting at the end
the following new sentence: ``This paragraph shall not apply to a
distribution which is a qualified rollover contribution from a Roth
IRA or a qualified rollover contribution from a designated Roth
account which is a rollover contribution described in section
402A(c)(3)(A)''.
(e) Amendment to Section 827.--The first sentence of section
72(t)(2)(G)(iv) of the 1986 Code is amended by inserting ``on or''
before ``before''.
(f) Amendments Related to Section 829.--
(1) Section 402(c)(11) of the 1986 Code is amended--
(A) by inserting ``described in paragraph (8)(B)(iii)''
after ``eligible retirement plan'' in subparagraph (A), and
(B) by striking ``trust'' before ``designated beneficiary''
in subparagraph (B).
(2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``Such term shall
include any distribution to a designated beneficiary which would be
treated as an eligible rollover distribution by reason of
subsection (c)(11), or section 403(a)(4)(B), 403(b)(8)(B), or
457(e)(16)(B), if the requirements of subsection (c)(11) were
satisfied.''
(B) Clause (i) of section 402(c)(11)(A) of the 1986 Code is
amended by striking ``for purposes of this subsection''.
(C) The amendments made by this paragraph shall apply with
respect to plan years beginning after December 31, 2009.
(g) Amendment Related to Section 832.--Section 415(f) of the 1986
Code is amended by striking paragraph (2) and by redesignating
paragraph (3) as paragraph (2).
(h) Amendments Related to Section 833.--
(1) Section 408A(c)(3)(C) of the 1986 Code, as added by section
833(c) of the 2006 Act, is redesignated as subparagraph (E).
(2) In the case of taxable years beginning after December 31,
2009, section 408A(c)(3)(E) of the 1986 Code (as redesignated by
paragraph (1))--
(A) is redesignated as subparagraph (D), and
(B) is amended by striking ``subparagraph (C)(ii)'' and
inserting ``subparagraph (B)(ii)''.
(i) Amendments Related to Section 841.--
(1) Section 420(c)(1)(A) of the 1986 Code is amended by adding
at the end the following new sentence: ``In the case of a qualified
future transfer or collectively bargained transfer to which
subsection (f) applies, any assets so transferred may also be used
to pay liabilities described in subsection (f)(2)(C).''
(2) Section 420(f)(2) of the 1986 Code is amended by striking
``such'' before ``the applicable'' in subparagraph (D)(i)(I).
(3) Section 4980(c)(2)(B) of the 1986 Code is amended by
striking ``or'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting ``, or'', and by adding at the
end the following new clause:
``(iii) any transfer described in section
420(f)(2)(B)(ii)(II).''.
(j) Amendments Related to Section 845.--
(1) Subsection (l) of section 402 of the 1986 Code is amended--
(A) in paragraph (1)--
(i) by inserting ``maintained by the employer described
in paragraph (4)(B)'' after ``an eligible retirement
plan'', and
(ii) by striking ``of the employee, his spouse, or
dependents (as defined in section 152)'' ,
(B) in paragraph (4)(D), by--
(i) inserting ``(as defined in section 152)'' after
``dependents'', and
(ii) striking ``health insurance plan'' and inserting
``health plan'', and
(C) in paragraph (5)(A), by striking ``health insurance
plan'' and inserting ``health plan''.
(2) Subparagraph (B) of section 402(l)(3) of the 1986 Code is
amended by striking ``all amounts distributed from all eligible
retirement plans were treated as 1 contract for purposes of
determining the inclusion of such distribution under section 72''
and inserting ``all amounts to the credit of the eligible public
safety officer in all eligible retirement plans maintained by the
employer described in paragraph (4)(B) were distributed during such
taxable year and all such plans were treated as 1 contract for
purposes of determining under section 72 the aggregate amount which
would have been so includible''.
(k) Amendments Related to Section 854.--
(1) Section 3121(b)(5)(E) of the 1986 Code is amended by
striking ``or special trial judge''.
(2) Section 210(a)(5)(E) of the Social Security Act is amended
by striking ``or special trial judge''.
(l) Amendments Related to Section 856.--Section 856 of the 2006
Act, and the amendments made by such section, are hereby repealed, and
the Internal Revenue Code of 1986 shall be applied and administered as
if such sections and amendments had not been enacted.
(m) Amendment Related to Section 864.--Section 864(a) of the 2006
Act is amended by striking ``Reconciliation''.
SEC. 109. AMENDMENTS RELATED TO TITLE IX.
(a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of
the 1986 Code is amended to read as follows:
``(iv) One-participant retirement plan.--For purposes
of clause (iii), the term `one-participant retirement plan'
means a retirement plan that on the first day of the plan
year--
``(I) covered only one individual (or the
individual and the individual's spouse) and the
individual (or the individual and the individual's
spouse) owned 100 percent of the plan sponsor (whether
or not incorporated), or
``(II) covered only one or more partners (or
partners and their spouses) in the plan sponsor.''.
(b) Amendments Related to Section 902.--
(1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended by
striking ``such compensation as exceeds 1 percent but does not''
and inserting ``such contributions as exceed 1 percent but do
not''.
(2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code are
each amended--
(A) by striking ``an erroneous automatic contribution'' and
inserting ``a permissible withdrawal'', and
(B) by striking ``erroneous automatic contribution'' in the
heading and inserting ``permissible withdrawal''.
(3) Section 402(g)(2)(A)(ii) of the 1986 Code is amended by
inserting ``through the end of such taxable year'' after ``such
amount''.
(4) Section 414(w)(3) of the 1986 Code is amended--
(A) in subparagraph (B), by inserting ``and'' after the
comma at the end,
(B) by striking subparagraph (C), and
(C) by redesignating subparagraph (D) as subparagraph (C).
(5) Section 414(w)(5) of the 1986 Code is amended by striking
``and'' at the end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting a comma, and by adding at
the end the following:
``(D) a simplified employee pension the terms of which
provide for a salary reduction arrangement described in section
408(k)(6), and
``(E) a simple retirement account (as defined in section
408(p)).''.
(6) Section 414(w)(6) of the 1986 Code is amended by inserting
``or for purposes of applying the limitation under section
402(g)(1)'' before the period at the end.
(c) Amendments Related to Section 903.--
(1) Amendment of 1986 code.--Section 414(x)(1) of the 1986 Code
is amended by adding at the end of paragraph (1) the following new
sentence: ``In the case of a termination of the defined benefit
plan and the applicable defined contribution plan forming part of
an eligible combined plan, the plan administrator shall terminate
each such plan separately.''
(2) Amendments of erisa.--Section 210(e) of ERISA is amended--
(A) by adding at the end of paragraph (1) the following new
sentence: ``In the case of a termination of the defined benefit
plan and the applicable defined contribution plan forming part
of an eligible combined plan, the plan administrator shall
terminate each such plan separately.'', and
(B) by striking paragraph (3) and by redesignating
paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5),
respectively.
(d) Amendments Related to Section 906.--
(1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by
striking ``paragraph (1)'' and inserting ``paragraph (10)''.
(2) Section 4021(b) of ERISA is amended by inserting ``or'' at
the end of paragraph (12), by striking ``; or'' at the end of
paragraph (13) and inserting a period, and by striking paragraph
(14).
SEC. 110. AMENDMENTS RELATED TO TITLE X.
(a) Amendments to Railroad Retirement Act.--
(1) Section 14(b) of the Railroad Retirement Act of 1974 (45
U.S.C. 231m(b)) is amended by adding at the end the following:
``(3)(A) Payments made pursuant to paragraph (2) of this
subsection shall not require that the employee be entitled to an
annuity under section 2(a)(1) of this Act: Provided, however, That
where an employee is not entitled to such an annuity, payments made
pursuant to paragraph (2) may not begin before the month in which
the following three conditions are satisfied:
``(i) The employee has completed ten years of service in
the railroad industry or, five years of service all of which
accrues after December 31, 1995.
``(ii) The spouse or former spouse attains age 62.
``(iii) The employee attains age 62 (or if deceased, would
have attained age 62).
``(B) Payments made pursuant to paragraph (2) of this
subsection shall terminate upon the death of the spouse or former
spouse, unless the court document provides for termination at an
earlier date. Notwithstanding the language in a court order, that
portion of payments made pursuant to paragraph (2) which represents
payments computed pursuant to section 3(f)(2) of this Act shall not
be paid after the death of the employee.
``(C) If the employee is not entitled to an annuity under
section 2(a)(1) of this Act, payments made pursuant to paragraph
(2) of this subsection shall be computed as though the employee
were entitled to an annuity.''.
(2) Subsection (d) of section 5 of the Railroad Retirement Act
(45 U.S.C. 231d) is repealed.
(b) Effective Dates.--
(1) Subsection (a)(1).--The amendment made by subsection (a)(1)
shall apply with respect to payments due for months after August
2007. If, prior to the effective date of such amendment, payment
pursuant to paragraph (2) of section 14(b) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231m(b)) was terminated because
of the employee's death, payment to the former spouse may be
reinstated for months after August 2007.
(2) Subsection (a)(2).--The amendment made by subsection (a)(2)
shall take effect upon the date of the enactment of this Act.
SEC. 111. AMENDMENTS RELATED TO TITLE XI.
(a) Amendment Related to Section 1104.--Section 1104(d)(1) of the
2006 Act is amended by striking ``Act'' the first place it appears and
inserting ``section''.
(b) Amendments Related to Section 1105.--Section 3304(a) of the
1986 Code is amended--
(1) in paragraph (15)--
(A) by redesignating clauses (i) and (ii) of subparagraph
(A) as subclauses (I) and (II),
(B) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii),
(C) by striking the semicolon at the end of clause (ii) (as
so redesignated) and inserting ``, and'',
(D) by striking ``(15)'' and inserting ``(15)(A) subject to
subparagraph (B),'', and
(E) by adding at the end the following:
``(B) the amount of compensation shall not be reduced on
account of any payments of governmental or other pensions,
retirement or retired pay, annuity, or other similar payments
which are not includible in the gross income of the individual
for the taxable year in which it was paid because it was part
of a rollover distribution;'', and
(2) by striking the last sentence.
(c) Amendments Related to Section 1106.--Section 3(37)(G) of ERISA
is amended by--
(1) striking ``paragraph'' each place it appears in clauses
(ii), (iii), and (v)(I) and inserting ``subparagraph'',
(2) striking ``subclause (i)(II)'' in clause (iii) and
inserting ``clause (i)(II)'',
(3) striking ``subparagraph'' in clause (v)(II) and inserting
``clause'', and
(4) by striking ``section 101(b)(4)'' in clause (v)(III) and
inserting ``section 101(b)(1)''.
SEC. 112. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the amendments made
by this subtitle shall take effect as if included in the provisions of
the 2006 Act to which the amendments relate.
Subtitle B--Other Provisions
SEC. 121. AMENDMENTS RELATED TO SECTIONS 102 AND 112 OF THE PENSION
PROTECTION ACT OF 2006.
(a) Amendment of ERISA.--The last sentence of section 303(g)(3)(B)
of ERISA is amended to read as follows: ``Any such averaging shall be
adjusted for contributions, distributions, and expected earnings (as
determined by the plan's actuary on the basis of an assumed earnings
rate specified by the actuary but not in excess of the third segment
rate applicable under subsection (h)(2)(C)(iii)), as specified by the
Secretary of the Treasury.''.
(b) Amendment of 1986 Code.--The last sentence of section
430(g)(3)(B) of the 1986 Code is amended to read as follows: ``Any such
averaging shall be adjusted for contributions, distributions, and
expected earnings (as determined by the plan's actuary on the basis of
an assumed earnings rate specified by the actuary but not in excess of
the third segment rate applicable under subsection (h)(2)(C)(iii)), as
specified by the Secretary.''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the provisions of the 2006 Act to which the
amendments relate.
SEC. 122. MODIFICATION OF INTEREST RATE ASSUMPTION REQUIRED WITH
RESPECT TO CERTAIN SMALL EMPLOYER PLANS.
(a) In General.--Subparagraph (E) of section 415(b)(2) of the 1986
Code (relating to limitation on certain assumptions) is amended by
adding at the end the following new clause:
``(vi) In the case of a plan maintained by an eligible
employer (as defined in section 408(p)(2)(C)(i)), clause
(ii) shall be applied without regard to subclause (II)
thereof.''.
(b) Effective Date.--The amendment made by this section shall apply
to years beginning after December 31, 2008.
SEC. 123. DETERMINATION OF MARKET RATE OF RETURN FOR GOVERNMENTAL
PLANS.
(a) Amendment of ADEA.--Section 4(i)(10)(B)(i)(III) of the Age
Discrimination in Employment Act of 1967 (29 U.S.C.
623(i)(10)(B)(i)(III)) is amended by adding at the end the following:
``In the case of a governmental plan (as defined in the first sentence
of section 414(d) of the Internal Revenue Code of 1986), a rate of
return or a method of crediting interest established pursuant to any
provision of Federal, State, or local law (including any administrative
rule or policy adopted in accordance with any such law) shall be
treated as a market rate of return for purposes of subclause (I) and a
permissible method of crediting interest for purposes of meeting the
requirements of subclause (I), except that this sentence shall only
apply to a rate of return or method of crediting interest if such rate
or method does not violate any other requirement of this Act.''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the provisions of the Pension Protection Act
of 2006 to which such amendment relates.
SEC. 124. TREATMENT OF CERTAIN REIMBURSEMENTS FROM GOVERNMENTAL
PLANS FOR MEDICAL CARE.
(a) In General.--Section 105 of the 1986 Code (relating to amounts
received under accident and health plans) is amended by adding at the
end the following new subsection:
``(j) Special Rule for Certain Governmental Plans.--
``(1) In general.--For purposes of subsection (b), amounts paid
(directly or indirectly) to the taxpayer from an accident or health
plan described in paragraph (2) shall not fail to be excluded from
gross income solely because such plan, on or before January 1,
2008, provides for reimbursements of health care expenses of a
deceased plan participant's beneficiary.
``(2) Plan described.--An accident or health plan is described
in this paragraph if such plan is funded by a medical trust that is
established in connection with a public retirement system and
that--
``(A) has been authorized by a State legislature, or
``(B) has received a favorable ruling from the Internal
Revenue Service that the trust's income is not includible in
gross income under section 115.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to payments before, on, or after the date of the enactment of
this Act.
SEC. 125. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER
BANKRUPTCY TO ROTH IRAS.
(a) General Rule.--If a qualified airline employee receives any
airline payment amount and transfers any portion of such amount to a
Roth IRA within 180 days of receipt of such amount (or, if later,
within 180 days of the date of the enactment of this Act), then such
amount (to the extent so transferred) shall be treated as a qualified
rollover contribution described in section 408A(e) of the Internal
Revenue Code of 1986, and the limitations described in section
408A(c)(3) of such Code shall not apply to any such transfer.
(b) Definitions and Special Rules.--For purposes of this section--
(1) Airline payment amount.--
(A) In general.--The term ``airline payment amount'' means
any payment of any money or other property which is payable by
a commercial passenger airline carrier to a qualified airline
employee--
(i) under the approval of an order of a Federal
bankruptcy court in a case filed after September 11, 2001,
and before January 1, 2007, and
(ii) in respect of the qualified airline employee's
interest in a bankruptcy claim against the carrier, any
note of the carrier (or amount paid in lieu of a note being
issued), or any other fixed obligation of the carrier to
pay a lump sum amount.
The amount of such payment shall be determined without regard
to any requirement to deduct and withhold tax from such payment
under sections 3102(a) and 3402(a).
(B) Exception.--An airline payment amount shall not include
any amount payable on the basis of the carrier's future
earnings or profits.
(2) Qualified airline employee.--The term ``qualified airline
employee'' means an employee or former employee of a commercial
passenger airline carrier who was a participant in a defined
benefit plan maintained by the carrier which--
(A) is a plan described in section 401(a) of the Internal
Revenue Code of 1986 which includes a trust exempt from tax
under section 501(a) of such Code, and
(B) was terminated or became subject to the restrictions
contained in paragraphs (2) and (3) of section 402(b) of the
Pension Protection Act of 2006.
(3) Reporting requirements.--If a commercial passenger airline
carrier pays 1 or more airline payment amounts, the carrier shall,
within 90 days of such payment (or, if later, within 90 days of the
date of the enactment of this Act), report--
(A) to the Secretary of the Treasury, the names of the
qualified airline employees to whom such amounts were paid, and
(B) to the Secretary and to such employees, the years and
the amounts of the payments.
Such reports shall be in such form, and contain such additional
information, as the Secretary may prescribe.
(c) Effective Date.--This section shall apply to transfers made
after the date of the enactment of this Act with respect to airline
payment amounts paid before, on, or after such date.
SEC. 126. DETERMINATION OF ASSET VALUE FOR SPECIAL AIRLINE FUNDING
RULES.
(a) In General.--Section 402(e)(4)(C) of the 2006 Act is amended to
read as follows:
``(C) the value of plan assets shall be determined under
sections 303(g)(3) of such Act and 430(g)(3) of such Code.''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 2007.
SEC. 127. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP
RETURNS.
(a) In General.--Section 6698(b)(1) of the 1986 Code is amended by
striking ``$85'' and inserting ``$89''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to returns required to be filed after December 31, 2008.
SEC. 128. MODIFICATION OF PENALTY FOR FAILURE TO FILE S CORPORATION
RETURNS.
(a) In General.--Section 6699(b)(1) of the 1986 Code is amended by
striking ``$85'' and inserting ``$89''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to returns required to be filed after December 31, 2008.
TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS
SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES
FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.
(a) In General.--Section 401(a)(9) of the Internal Revenue Code of
1986 (relating to required distributions) is amended by adding at the
end the following new subparagraph:
``(H) Temporary waiver of minimum required distribution.--
``(i) In general.--The requirements of this paragraph
shall not apply for calendar year 2009 to--
``(I) a defined contribution plan which is
described in this subsection or in section 403(a) or
403(b),
``(II) a defined contribution plan which is an
eligible deferred compensation plan described in
section 457(b) but only if such plan is maintained by
an employer described in section 457(e)(1)(A), or
``(III) an individual retirement plan.
``(ii) Special rules regarding waiver period.--For
purposes of this paragraph--
``(I) the required beginning date with respect to
any individual shall be determined without regard to
this subparagraph for purposes of applying this
paragraph for calendar years after 2009, and
``(II) if clause (ii) of subparagraph (B) applies,
the 5-year period described in such clause shall be
determined without regard to calendar year 2009.''.
(b) Eligible Rollover Distributions.--Section 402(c)(4) of the
Internal Revenue Code of 1986 (defining eligible rollover distribution)
is amended by adding at the end the following new flush sentence:
``If all or any portion of a distribution during 2009 is treated as
an eligible rollover distribution but would not be so treated if
the minimum distribution requirements under section 401(a)(9) had
applied during 2009, such distribution shall not be treated as an
eligible rollover distribution for purposes of section 401(a)(31)
or 3405(c) or subsection (f) of this section.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply for calendar years beginning after December 31, 2008.
(2) Provisions relating to plan or contract amendments.--
(A) In general.--If this paragraph applies to any pension
plan or contract amendment, such pension plan or contract shall
not fail to be treated as being operated in accordance with the
terms of the plan during the period described in subparagraph
(B)(ii) solely because the plan operates in accordance with
this section.
(B) Amendments to which paragraph applies.--
(i) In general.--This paragraph shall apply to any
amendment to any pension plan or annuity contract which--
(I) is made pursuant to the amendments made by this
section, and
(II) is made on or before the last day of the first
plan year beginning on or after January 1, 2011.
In the case of a governmental plan, subclause (II) shall be
applied by substituting ``2012'' for ``2011''.
(ii) Conditions.--This paragraph shall not apply to any
amendment unless during the period beginning on the
effective date of the amendment and ending on December 31,
2009, the plan or contract is operated as if such plan or
contract amendment were in effect.
SEC. 202. TRANSITION RULE CLARIFICATION.
(a) Amendment to ERISA.--Subparagraph (B) of section 303(c)(5) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1083(c)(5)) is amended--
(1) by striking clause (iii) and redesignating clause (iv) as
clause (iii); and
(2) by striking clause (i) and inserting the following:
``(i) In general.--Except as provided in clause (iii),
in the case of plan years beginning after 2007 and before
2011, only the applicable percentage of the funding target
shall be taken into account under paragraph (3)(A) in
determining the funding shortfall for purposes of paragraph
(3)(A) and subparagraph (A).''.
(b) Amendment to 1986 Code.--Subparagraph (B) of section 430(c)(5)
of the Internal Revenue Code of 1986 is amended--
(1) by striking clause (iii) and redesignating clause (iv) as
clause (iii); and
(2) by striking clause (i) and inserting the following:
``(i) In general.--Except as provided in clause (iii),
in the case of plan years beginning after 2007 and before
2011, only the applicable percentage of the funding target
shall be taken into account under paragraph (3)(A) in
determining the funding shortfall for purposes of paragraph
(3)(A) and subparagraph (A).''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply as if included in the enactment of sections 102 and 112,
respectively, of the Pension Protection Act of 2006.
SEC. 203. TEMPORARY MODIFICATION OF APPLICATION OF LIMITATION ON
BENEFIT ACCRUALS.
In the case of the first plan year beginning during the period
beginning on October 1, 2008, and ending on September 30, 2009,
sections 206(g)(4)(A) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue
Code of 1986 shall be applied by substituting the plan's adjusted
funding target attainment percentage for the preceding plan year for
such percentage for such plan year but only if the adjusted funding
target attainment percentage for the preceding plan year is greater.
SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS
IN ENDANGERED OR CRITICAL STATUS.
(a) In General.--Notwithstanding the actuarial certification under
section 305(b)(3) of the Employee Retirement Income Security Act of
1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a
plan sponsor of a multiemployer plan elects the application of this
section, then, for purposes of section 305 of such Act and section 432
of such Code--
(1) the status of the plan for its first plan year beginning
during the period beginning on October 1, 2008, and ending on
September 30, 2009, shall be the same as the status of such plan
under such sections for the plan year preceding such plan year, and
(2) in the case of a plan which was in endangered or critical
status for the preceding plan year described in paragraph (1), the
plan shall not be required to update its plan or schedules under
section 305(c)(6) of such Act and section 432(c)(6) of such Code,
or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of
such Code, whichever is applicable, until the plan year following
the first plan year described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974
and section 432 of the Internal Revenue Code of 1986 did not apply to
the preceding plan year described in paragraph (1), the plan actuary
shall make a certification of the status of the plan under section
305(b)(3) of such Act and section 432(b)(3) of such Code for the
preceding plan year in the same manner as if such sections had applied
to such preceding plan year.
(b) Exception for Plans Becoming Critical During Election.--If--
(1) an election was made under subsection (a) with respect to a
multiemployer plan, and
(2) such plan has, without regard to such election, been
certified by the plan actuary under section 305(b)(3) of such Act
and section 432(b)(3) of such Code to be in critical status for the
first plan year described in subsection (a)(1),
then such plan shall be treated as a plan in critical status for such
plan year for purposes of applying section 4971(g)(1)(A) of such Code,
section 302(b)(3) of such Act (without regard to the second sentence
thereof), and section 412(b)(3) of such Code (without regard to the
second sentence thereof).
(c) Election and Notice.--
(1) Election.--An election under subsection (a) shall--
(A) be made at such time and in such manner as the
Secretary of the Treasury or the Secretary's delegate may
prescribe and, once made, may be revoked only with the consent
of the Secretary, and
(B) if the election is made--
(i) before the date the annual certification is
submitted to the Secretary or the Secretary's delegate
under section 305(b)(3) of such Act and section 432(b)(3)
of such Code, be included with such annual certification,
and
(ii) after such date, be submitted to the Secretary or
the Secretary's delegate not later than 30 days after the
date of the election.
(2) Notice to participants.--
(A) In general.--Notwithstanding section 305(b)(3)(D) of
such Act and section 431(b)(3)(D) of such Code, if the plan is
neither in endangered nor critical status by reason of an
election made under subsection (a)--
(i) the plan sponsor of a multiemployer plan shall not
be required to provide notice under such sections, and
(ii) the plan sponsor shall provide to the participants
and beneficiaries, the bargaining parties, the Pension
Benefit Guaranty Corporation, and the Secretary of Labor a
notice of the election and such other information as the
Secretary of the Treasury (in consultation with the
Secretary of Labor) may require--
(I) if the election is made before the date the
annual certification is submitted to the Secretary or
the Secretary's delegate under section 305(b)(3) of
such Act and section 432(b)(3) of such Code, not later
than 30 days after the date of the certification, and
(II) if the election is made after such date, not
later than 30 days after the date of the election.
(B) Notice of endangered status.--Notwithstanding section
305(b)(3)(D) of such Act and section 431(b)(3)(D) of such Code,
if the plan is certified to be in critical status for any plan
year but is in endangered status by reason of an election made
under subsection (a), the notice provided under such sections
shall be the notice which would have been provided if the plan
had been certified to be in endangered status.
SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND
REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN
CRITICAL AND ENDANGERED STATUS FOR 2008 OR 2009.
(a) In General.--If the plan sponsor of a multiemployer plan which
is in endangered or critical status for a plan year beginning in 2008
or 2009 (determined after application of section 204) elects the
application of this section, then, for purposes of section 305 of the
Employee Retirement Income Security Act of 1974 and section 432 of the
Internal Revenue Code of 1986--
(1) except as provided in paragraph (2), the plan's funding
improvement period or rehabilitation period, whichever is
applicable, shall be 13 years rather than 10 years, and
(2) in the case of a plan in seriously endangered status, the
plan's funding improvement period shall be 18 years rather than 15
years.
(b) Definitions and Special Rules.--For purposes of this section--
(1) Election.--An election under this section shall be made at
such time, and in such manner and form, as (in consultation with
the Secretary of Labor) the Secretary of the Treasury or the
Secretary's delegate may prescribe.
(2) Definitions.--Any term which is used in this section which
is also used in section 305 of the Employee Retirement Income
Security Act of 1974 and section 432 of the Internal Revenue Code
of 1986 shall have the same meaning as when used in such sections.
(c) Effective Date.--This section shall apply to plan years
beginning after December 31, 2007.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.