110 HR 6143 IH: Pension Protection Act Amendments of
U.S. House of Representatives
2008-05-22
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of
contents
(a)This Act may be cited
as the Pension Protection Act ERISA
Amendments of 2008
.
(b)The table of
contents is as follows:
Sec. 1. Short title and table of contents.
Title I—Worker Protection Modifications
Sec. 101. Repeal of new rules for termination date in the case
of bankruptcy of employer.
Sec. 102. Age requirement for commercial airline
pilots.
Sec. 103. Pro-Rata Recovery under ERISA.
Sec. 104. Correction of effective dates for collectively
bargained plans.
Sec. 105. Retiree health benefit protections in group health
plans.
Title II—Multiemployer Modifications
Sec. 201. Crediting and termination of surcharges in connection
with multiemployer plan in critical status upon adoption of rehabilitation
plan.
Sec. 202. Schedules required to be provided by multiemployer
plans in endangered status.
Sec. 203. Amendments to funding rules for multiemployer
plans.
Title III—Single-Employer Modifications
Sec. 301. Asset smoothing.
Sec. 302. Prohibited payments.
Sec. 303. Clarification of age discrimination rules in
connection with the Young Women’s Christian Association Pension
Plan.
Sec. 304. Prohibited transactions exemption for divestment of
employer securities.
Sec. 305. Special rule relating to at-risk status for employees
offered early retirement in 2006 or 2007.
Sec. 306. Phase-in of funding target.
Title IV—Small Employer Modifications
Sec. 401. Treatment of employees of certain cooperatives as
affiliated service group employees.
Title V—Prohibited Transactions Modifications
Sec. 501. Clarification of parties in interest affected by
prohibited transaction exemption for block trading.
Sec. 502. Clarification of scope of prohibited transaction
exemption for electronic communication networks.
Sec. 503. Increase in maximum bond amount for plans holding
employer securities.
<enum>I</enum><header>Worker
Protection Modifications</header>
<section id="H85B20D1B1DF14B6E9142B3CAD3964F05"><enum>101.</enum><header>Repeal of new
rules for termination date in the case of bankruptcy of employer</header>
<subsection id="H30FCFB262C2A46BAB18E8FF64BF2546B"><enum>(a)</enum><header>In
general</header><text>Section 404 of the Pension Protection Act of 2006 (Public
Law 109–280; 120 Stat. 928) (including the amendments made thereby) is hereby
repealed.</text>
</subsection><subsection id="H084598304860470EBA998761EB6F85C5"><enum>(b)</enum><header>Effective
date</header><text>Subsection (a) shall be effective as if included in the
enactment of the Pension Protection Act of 2006.</text>
</subsection></section><section display-inline="no-display-inline" id="H1F659EB080334054B15DC3DB8427A787" section-type="subsequent-section"><enum>102.</enum><header>Age requirement for
commercial airline pilots</header>
<subsection id="H521E57155F484AA3A63E5C3767B49DE6"><enum>(a)</enum><header>Single-Employer
plan benefits guaranteed</header><text>Section 4022(b)(3) of the
<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1322">29 U.S.C. 1322(b)(3)</external-xref>) is amended, in the flush matter
following subparagraph (B), by adding at the end the following: <quote>If, at
the time of termination of a plan under this title or at the time of the
freezing of benefit accruals under a plan pursuant to subsections (a)(1) and
(b) of section 402 of the Pension Protection Act of 2006, regulations
prescribed by the Federal Aviation Administration require an individual to
separate from service as a commercial airline pilot after attaining a specified
age which is less than age 65, the first sentence of this paragraph shall be
applied to an individual who is a participant in the plan by reason of such
service by substituting such age for age 65.</quote>.</text>
</subsection><subsection id="HFEC456A2854A4A48980754009CDACBAD"><enum>(b)</enum><header>Aggregate limit
on benefits guaranteed</header><text>Section 4022B(a) of such Act (29 U.S.C.
1322b(a)) is amended by adding at the end the following: <quote>If, at the time
of termination of a plan under this title or at the time of the freezing of
benefit accruals under a plan pursuant to subsections (a)(1) and (b) of section
402 of the Pension Protection Act of 2006, regulations prescribed by the
Federal Aviation Administration require an individual to separate from service
as a commercial airline pilot after attaining a specified age which is less
than age 65, this subsection shall be applied to an individual who is a
participant in the plan by reason of such service by substituting such age for
age 65.</quote>.</text>
</subsection><subsection id="HD59A0F0715394BAD8312F5337025FC34"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to benefits
payable on or after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H46BE1AFF0C0241B2B1BD8BEEAD19A900" section-type="subsequent-section"><enum>103.</enum><header>Pro-Rata Recovery
under ERISA</header>
<subsection id="HF4691F687DBD49BB9F284283B3E0BF03"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 502 of the
Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132</external-xref>) is
amended—</text>
<paragraph id="H69B30ED387E346E489AD8C089D802DD7"><enum>(1)</enum><text>in subsection
(a)(3)(B)(ii), by inserting <quote>subject to subsection (b)(4)</quote> before
<quote>the terms of the plan</quote>; and</text>
</paragraph><paragraph id="HC870E9CEEA40485ABFCAA82508A7F1ED"><enum>(2)</enum><text>in subsection (b),
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB86FFC1C25C74AAA81092F572FC412EE" style="traditional">
<paragraph id="H452C3E77C2914B74959096583059C2A1" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5DF79A8F936849D4971EBE52D42E5CA"><enum>(A)</enum><text display-inline="yes-display-inline">No action by a fiduciary under subsection
(a)(3)(B)(ii) to enforce subrogation rights under the terms of the plan which
is brought against a third party to seek reimbursement from a recovery by a
participant or beneficiary may result in recovery by the fiduciary of an amount
that is greater than an amount that bears the same ratio to the recovery by the
participant or beneficiary as the amount of the net tort recovery by the
participant or beneficiary bears to the total compensatory damages awarded to
the participant or beneficiary.</text>
</subparagraph><subparagraph id="HEE3835288C3E4BFE88A496A2C7F3E405" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In an action described in subparagraph (A),
any subrogation claim of the fiduciary as calculated pursuant to subparagraph
(A) shall be reduced by an amount that is equal to the percentage that the
costs of the tort recovery bear to the total sum upon which the costs of the
tort recovery are
computed.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H03E0CE40FE284CAF88A2F94FAF799023"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply with
respect to actions (described in section 502(b)(4) of the Employee Retirement
Income Security Act of 1974 as amended by subsection (a)) commenced on or after
the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HC1FB6C3987084A3FADDF76136E12FAEF" section-type="subsequent-section"><enum>104.</enum><header>Correction of
effective dates for collectively bargained plans</header>
<subsection id="H547EBDACDDA64126B418DF555CA62006"><enum>(a)</enum><header>Periodic pension
benefit statements</header><text>Section 508(c)(2) of the Pension Protection
Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 952) is amended—</text>
<paragraph id="H3F8A70221ABD48A383B0088E5E656575"><enum>(1)</enum><text>by striking
<quote>paragraph (1) shall be applied to benefits pursuant to, and individuals
covered by, any such agreement by substituting for <quote>December 31,
2006</quote> the earlier of</quote> and inserting <quote>the amendments made by
this section shall not apply to plan years beginning before the earlier
of</quote>; and</text>
</paragraph><paragraph id="HB48CC2968768474DA8ADEE896C8432"><enum>(2)</enum><text>in
subparagraph (A)(i), by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2006</quote>.</text>
</paragraph></subsection><subsection id="H8868F39F78264F7D95C9EC117A6D066"><enum>(b)</enum><header>Requirements for
employer stock diversification</header><text>Section 901(c)(2) of the Pension
Protection Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 1032) is amended—</text>
<paragraph id="H72A5F1D5E34E4B9B934CA1532947E941"><enum>(1)</enum><text>by striking
<quote>paragraph (1) shall be applied to benefits pursuant to, and individuals
covered by, any such agreement by substituting for <quote>December 31,
2006</quote> the earlier of</quote> and inserting <quote>the amendments made by
this section shall not apply to plan years beginning before the earlier
of</quote>; and</text>
</paragraph><paragraph id="H4B35862981D040049500EE24E262D6DE"><enum>(2)</enum><text>in subparagraph
(A)(i), by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2006</quote>.</text>
</paragraph></subsection><subsection id="H229311797415429F92DAAB5CF120F09C"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply as if
included in the enactment of the Pension Protection Act of 2006.</text>
</subsection></section><section display-inline="no-display-inline" id="HA22710F6CC044064AA132283B1434128" section-type="subsequent-section"><enum>105.</enum><header>Retiree health
benefit protections in group health plans</header>
<subsection id="H284FC17AFB6F480C82FA1129E88F1700"><enum>(a)</enum><header>Amendments to
ERISA</header>
<paragraph id="HE81C1D4CC9EA4BBB9F23AE2C2521F2E"><enum>(1)</enum><header>In
general</header><text>Subtitle B of title I of the
<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> is amended by adding at the end a new part 8 as follows:</text>
<quoted-block act-name="Employee Retirement Income Security Act of 1974" id="H41823EABFCAA4C52B32276388B361918">
<part id="HF7F4968A98F647079D7F28001678C8EA"><enum>8</enum><header>Emergency retiree
health benefit protections</header>
<section id="H8CF114223C9B4753BB39ED061B8F6F6C"><enum>801.</enum><header>Prohibition
against post-retirement reductions of retiree health benefits by group health
plans</header>
<subsection id="H100B8785FE7F4943A3A71EAB399D4790"><enum>(a)</enum><header>In
general</header><text>Notwithstanding that a group health plan described in
subsection (b) may contain a provision reserving the general power to amend or
terminate the plan or a provision specifically authorizing the plan to make
post-retirement reductions in retiree health benefits, it shall be prohibited
for any group health plan, whether through amendment or otherwise, to reduce
the benefits provided to a retired participant or his or her beneficiary under
the terms of the plan if such reduction of benefits occurs after the date the
participant retired for purposes of the plan and reduces benefits that were
provided to the participant, or his or her beneficiary, as of the date the
participant retired. Any group health plan provision which purports to
authorize the reduction of benefits in a manner inconsistent with the foregoing
prohibition shall be void as against public policy.</text>
</subsection><subsection id="H2C097C9E32864E8B909CA066D8408178"><enum>(b)</enum><header>Group health
plan</header><text>The term <term>group health plan</term> shall have the same
meaning as in section 607(1).</text>
</subsection><subsection id="HAC0676A9E79048A8818412A94B909102"><enum>(c)</enum><header>Prohibited
reduction of benefits</header><text>As used in this section, references to a
prohibited reduction of benefits means any group health plan amendment or other
action which has the effect of—</text>
<paragraph id="H195C360F899740128137CF92B06BE2FC"><enum>(1)</enum><text>canceling,
decreasing or limiting the amount, type, level, or form of any benefit or
option provided prior to the amendment or action;</text>
</paragraph><paragraph id="H15F245ACFC484D998D08A4469EA5EFA"><enum>(2)</enum><text>imposing or
increasing the out-of-pocket costs a retired participant, or his or her
beneficiary, must pay in order to keep or obtain any benefits that were
provided to the participant or beneficiary prior to the amendment or action;
or</text>
</paragraph><paragraph id="H4D28111368044533AB57EE3483955821"><enum>(3)</enum><text>modifying the
manner by which medical services are delivered under the plan so that after the
amendment or action a retired participant, or his or her beneficiary, has less
ready access to the delivery of any such medical services than the participant
or beneficiary had prior to the amendment or action.</text>
</paragraph></subsection><subsection id="HE786ABF90EDE43B685FC135B9300368C"><enum>(d)</enum><header>Treatment of
plan termination</header>
<paragraph id="HFB06D90A57C24AAC9FFA8031002BA674"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), a termination of a group health
plan shall be treated as violating the prohibition contained in this section
if, after the termination, the plan sponsor of the terminated plan fails to
continue to provide to the participants who retired prior to the termination
and to their beneficiaries the same retiree health benefits that were provided
prior to the termination.</text>
</paragraph><paragraph id="HF1CF5C76B332418EBF709FEF9C6D0615"><enum>(2)</enum><header>Waiver</header><text>Paragraph
(1) shall not apply in the case of the termination of a group health plan if
the Secretary issues a waiver under this paragraph in connection with such
termination. The Secretary shall issue such a waiver if and only if the plan
sponsor demonstrates to the satisfaction of the Secretary, in accordance with
regulations prescribed by the Secretary, that such plan sponsor will be unable
to continue in business unless such a waiver is issued.</text>
</paragraph></subsection><subsection id="H3E3EB19B01504BDE9F639BB3C7CF9F87"><enum>(e)</enum><header>Consent or
authorization by participant</header><text>A reduction of benefits shall not be
treated as prohibited by this section if such reduction is consented to in
writing by any retired participant or is authorized with respect to the retired
participant under the terms of one or more agreements which the Secretary finds
to be collective bargaining agreements between one or more employee
representatives who were representing such participant at the time of the entry
into such agreement and one or more employers.</text>
</subsection></section><section id="HE6C5EE4920FD42FBA2C0DA31ADCFC8C"><enum>802.</enum><header>Adoption by
group health plans of provision barring post-retirement reductions in retiree
health benefits</header><text display-inline="no-display-inline">Every group
health plan shall contain a provision which expressly bars the plan, or any
fiduciary of the plan, from reducing the benefits provided under the plan to a
retired participant, or his or her beneficiary, if such reduction affects the
benefits provided to the participant or beneficiary as of the date the
participant retired for purposes of the plan and such reduction occurs after
the participant’s retirement.</text>
</section><section id="HA9401460C0C84CDAA453A01EA14C28F6"><enum>803.</enum><header>Restoration by
group health plans of benefits reduced after retirement</header>
<subsection id="H57249B40176A4F71A0087048A77E98C2"><enum>(a)</enum><header>In
general</header><text>The plan sponsor of each group health plan shall provide,
in accordance with this section, the option of benefit restoration to each
retired participant that meets the following requirements:</text>
<paragraph id="H02A78EBC594941A995EDCE96A897B87F"><enum>(1)</enum><text>The retired
participant is entitled to benefit coverage under the plan as of the date of
enactment of the <short-title>Emergency Retiree Health
Benefits Protection Act of 2007</short-title>.</text>
</paragraph><paragraph id="H3F8865F9D3F7443B8DF0E3F8DFF377F"><enum>(2)</enum><text>The amount, type,
level, or form of any benefits or option provided to the retired participant
under the plan as of the date the participant retired was reduced after the
participant’s date of retirement. For purposes of the preceding sentence, the
term <term>reduced</term> has the same meaning as in section 801(c).</text>
</paragraph><paragraph id="H2454A2015D454E1E95B02783E63073E4"><enum>(3)</enum><text>The retired
participant has elected to restore benefits under the plan within the
restoration period prescribed by subsection (c) and in accordance with such
procedures established by the plan pursuant to regulations of the
Secretary.</text>
</paragraph></subsection><subsection id="HE5E85D8326C24CC6BE819351A8C430F8"><enum>(b)</enum><header>Exception for
certain plans</header><text>In accordance with regulations prescribed by the
Secretary, subsection (a) shall not apply to any group health plan with less
than 100 participants both on and after the date of enactment of the
<short-title>Emergency Retiree Health Benefits Protection
Act of 2007</short-title>.</text>
</subsection><subsection id="H6B5E8F0E4B49455D8170004200BABA37"><enum>(c)</enum><header>Restoration
period</header><text>The term <term>restoration period</term> means the period
which—</text>
<paragraph id="HF356AA5F107E4C908E6FE373FFA6ED96"><enum>(1)</enum><text>begins not later
than 1 year after the date of enactment of the
<short-title>Emergency Retiree Health Benefits Protection
Act of 2007</short-title>;</text>
</paragraph><paragraph id="HCC98E2B129BF49ED834082DFEB8F5400"><enum>(2)</enum><text>ends before 2
years from such date, unless extended by the Secretary pursuant to section
804(g); and</text>
</paragraph><paragraph id="H3751D01596D8413B89ABBE51EDC027ED"><enum>(3)</enum><text>is of no less than
60 days duration.</text>
</paragraph></subsection><subsection id="H01D981FB79FA402E9E9CB5923E053810"><enum>(d)</enum><header>Notice
requirements concerning restoration of benefits</header><text>In accordance
with regulations prescribed by the Secretary, each group health plan subject to
the requirements of subsection (a) shall, within no less than 30 days prior to
the commencement of the plan’s restoration of benefits period, provide written
notice to each retired participant of the plan who meets the requirements of
subsection (a) of the following:</text>
<paragraph id="H0D78DA4EA5314BE4ACAEE7F1CB4C2365"><enum>(1)</enum><text>A description of
all benefits the retired participant is entitled to have restored.</text>
</paragraph><paragraph id="HB47559CF6CB9491A006570C1237F7B17"><enum>(2)</enum><text>The administrative
procedure established under the plan which may be used to submit a claim for
the restoration of any benefits.</text>
</paragraph><paragraph id="HFFF868F249954976B0A576446C9D2CF7"><enum>(3)</enum><text>An itemization of
the value of each benefit the retired participant is entitled to have restored,
as determined in accordance with regulations of the Secretary, and the total
value of all such benefits.</text>
</paragraph><paragraph id="H8FB1D4B819EA4ED98EE124EB026BED02"><enum>(4)</enum><text>A description of
any post-retirement increases in retiree health benefits the retired
participant received which the plan sponsor could rescind if the retired
participant asserts a claim for the restoration of benefits.</text>
</paragraph><paragraph id="H6D21DBA03C844045BC08604DAA9414C6"><enum>(5)</enum><text>An itemization of
the value of each retiree health benefit the plan sponsor could rescind, as
determined in accordance with regulations of the Secretary, and the total value
of all such benefits.</text>
</paragraph><paragraph id="HCD5C9885B1DA4448929CB3AEB79833B"><enum>(6)</enum><text>If the plan sponsor
has filed an application for a substantial business hardship exemption under
section 804, the date such application was filed, the date notice of such
application was given to retired participants entitled to submit a claim for
the restoration of benefits, and the status of such application as of the date
of the notice sent pursuant to this subsection.</text>
</paragraph><paragraph id="H857B2323307B45C3BF9CB43E5490A7D3"><enum>(7)</enum><text>Such other
information in such form and detail as may be prescribed by the Secretary to
carry out the purposes of this part.</text>
</paragraph></subsection><subsection id="HA4785560BAA34DCC9785A6D66C77E448"><enum>(e)</enum><header>Deadline for
restoration of benefits</header><text>Regardless of any extension that may be
granted by the Secretary pursuant to section 804(g), all benefits required to
be restored under this section shall be restored within no more than 3 years
from the date of enactment of the <short-title>Emergency
Retiree Health Benefits Protection Act of 2007</short-title>, or the date the
plan sponsor files an application for an exemption under section 804, whichever
comes last.</text>
</subsection></section><section id="H90C56DBBB2444F7CBAD357196DA06EC"><enum>804.</enum><header>Exemption from
restoration of benefits requirements</header>
<subsection id="H663E4BC1FD354D7895DD00BE71148E41"><enum>(a)</enum><header>Application for
exemption</header><text>Any plan sponsor of a group health plan that would
sustain substantial business hardship if required to fulfill, in whole or in
part, the restoration of benefits requirements contained in section 803, may
file an application for an exemption with the Secretary from any or all of such
requirements.</text>
</subsection><subsection id="H9E5E717F00BF4861BBFB9363CED977AD"><enum>(b)</enum><header>Authority for
waiver or variance</header><text>In response to an application filed by a plan
sponsor pursuant to subsection (a), the Secretary may waive or vary the
requirements of section 803 with respect to any or all of such requirements,
including postponing for reasonable periods of time the obligation of the plan
sponsor to restore reduced benefits, if the Secretary finds that compliance by
the plan sponsor with the requirements of section 803 would—</text>
<paragraph id="H19397484AD404073B699EE84C9CC634"><enum>(1)</enum><text>be adverse to the
interests of plan participants in the aggregate;</text>
</paragraph><paragraph id="HDA70F4218C1B429A979690243D29A9C6"><enum>(2)</enum><text>not be
administratively feasible; and</text>
</paragraph><paragraph id="HC8DDE2149AA7467CA95B9C374FDC58D9"><enum>(3)</enum><text>cause substantial
business hardship to the plan sponsor.</text>
</paragraph></subsection><subsection id="H88AD6FE110BC4A0ABB369802FAB6CCCA"><enum>(c)</enum><header>Factors taken
into account</header><text>For purposes of this section, the factors to be
taken into account in determining substantial business hardship shall include
(but shall not be limited to) whether—</text>
<paragraph id="H0472B13ABC714DBEA07B8E91C55F0075"><enum>(1)</enum><text>the plan sponsor
is operating at an economic loss;</text>
</paragraph><paragraph id="HA6F9CB7F3EC047EEA056CD00007D0565"><enum>(2)</enum><text>compliance with
the restoration of benefits requirements would necessitate substantial future
reductions in health benefits provided to participants under the plan or cause
a substantial decline in employment with the plan sponsor;</text>
</paragraph><paragraph id="H2B03664081E645DA9504AEC71DC49FA2"><enum>(3)</enum><text>it is reasonable
to expect that the plan will be continued only if a waiver or appropriate
variance is granted; and</text>
</paragraph><paragraph id="HF6736C8CC13D449E80AD8BCFC01B5DAB"><enum>(4)</enum><text>the provisions of
the Retiree Health Loan Guarantee Program established under section 805 are
unavailable to the plan sponsor submitting the application, or, if available,
still would not provide a sufficient basis for denying a waiver or
variance.</text>
</paragraph></subsection><subsection id="HCCF6DC7E22F24DF7A271E96831B598E5"><enum>(d)</enum><header>Requirement of
satisfactory evidence</header>
<paragraph id="HE959B1400F0147089431828336E4141F"><enum>(1)</enum><header>In
general</header><text>The Secretary shall, before granting a waiver or variance
under this section, require each applicant to provide evidence satisfactory to
the Secretary that the applicant has provided timely written notice of the
filing of an application for such waiver or variance to each retired
participant entitled to submit a claim for the restoration of benefits under
the applicant’s plan.</text>
</paragraph><paragraph id="H89CD15E46E124E6884C42C00A565E2FD"><enum>(2)</enum><header>Timeliness</header><text>For
purposes of paragraph (1), a written notice shall be considered timely if it is
provided not later than 60 days prior to the date the plan sponsor files an
application for a waiver or variance under this section.</text>
</paragraph><paragraph id="HB70D0F0AF3994A8087906B40BCA1E4B"><enum>(3)</enum><header>Information
required</header><text>The notice referred to in paragraph (1) shall include
information with respect to the specific relief that will be sought by the plan
sponsor’s application, the period of time for which relief is sought, and such
other relevant information as the Secretary may prescribe.</text>
</paragraph></subsection><subsection id="H8B17748ED65F45E9B2B6020724235209"><enum>(e)</enum><header>Participation in
proceedings by retired plan participants</header><text>Each retired participant
entitled to submit a claim for the restoration of benefits within the meaning
of this section shall be provided a reasonable opportunity to submit comments
or otherwise participate in any proceeding established by the Secretary to
determine whether to grant or deny an application for a waiver or variance
filed by the retired participant’s plan sponsor.</text>
</subsection><subsection id="H931AC4F7F30D48D78469B93D1C09EECD"><enum>(f)</enum><header>Exception for
certain applications</header><text>The Secretary shall not be authorized to
grant any application for a waiver or variance purporting to satisfy the
requirements of subsection (b) if—</text>
<paragraph id="H1E8E0774060B43DD90ADB7B8362BFEE2"><enum>(1)</enum><text>within the 5-year
period preceding the date of the plan sponsor’s application the plan sponsor
could have transferred excess pension assets to a health benefits account
within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420</external-xref> of the Internal Revenue Code of 1986 (as in
effect on the date of the enactment of the Tax Relief Extension Act of 1999)
but failed to do so, and the plan sponsor is submitting an application on
behalf of such retiree health account; or</text>
</paragraph><paragraph id="H5C0914BF7D9943DD86F585197BB73483"><enum>(2)</enum><text>the plan sponsor
submitting the application also maintains a fully funded pension plan with
respect to which—</text>
<subparagraph id="H969AF5CC897743EDA902F79931C39D15"><enum>(A)</enum><text>retired
participants eligible to submit a claim for the restoration of benefits under
section 803 are also eligible to receive ad hoc cost-of-living adjustment
benefits;</text>
</subparagraph><subparagraph id="HC4D16B13023B4892B36CF9B114C27D11"><enum>(B)</enum><text>the assets of the
fully funded pension plan, over the past 5 years preceding the date of
application for a waiver or variance, on average have exceeded 120 percent of
the plan’s liabilities;</text>
</subparagraph><subparagraph id="HC4C72124824C418C9746BEA8858B90A9"><enum>(C)</enum><text>the plan had no
minimum funding requirement to satisfy within the 5 years preceding the date of
application for the waiver or variance and the plan sponsor submitting the
application made no minimum funding contribution to the fully funded pension
plan during such 5-year period; and</text>
</subparagraph><subparagraph id="H88B97640EE8E4087930600E2D31B2215"><enum>(D)</enum><text>the plan sponsor
submitting the application for a waiver or variance failed to provide an ad hoc
cost-of-living adjustment benefit from the fully funded pension plan during the
5-year period preceding the date of application for the waiver or
variance.</text>
</subparagraph></paragraph></subsection><subsection id="HCF30CB2CDDC147A596EB97FA8BE6D399"><enum>(g)</enum><header>Running of
restoration period suspended</header><text>The submission of an application for
a waiver or variance pursuant to this section shall suspend the running of any
relevant restoration period as specified in subsection (c). Where appropriate,
the Secretary shall direct the reopening of any relevant restoration period
upon the final conclusion of proceedings to determine whether an application
should be granted or denied.</text>
</subsection></section><section id="H7FC5686FCC9242D49CC54CEFBE46762C"><enum>805.</enum><header>Establishment
of Emergency Retiree Health Loan Guarantee Program</header>
<subsection id="H1785C2CD3407469E818675E42900FDEA"><enum>(a)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HBA30CD6C803D446FA416C85CEF6C78F5"><enum>(1)</enum><header>Board</header><text>The
term <term>Board</term> means the Emergency Retiree Health Loan Guarantee Board
established under subsection (c).</text>
</paragraph><paragraph id="HA99FAA541080458A957BE990B44F3C70"><enum>(2)</enum><header>Program</header><text>The
term <term>Program</term> means the Emergency Retiree Health Loan Guarantee
Program established under subsection (b).</text>
</paragraph><paragraph id="HAEA3687B56D947EDB98D699981B79C53"><enum>(3)</enum><header>Eligible plan
sponsor</header><text>The term <term>eligible plan sponsor</term> means any
plan sponsor as defined in section 3(16)(B) that maintains a group health plan
subject to the retiree health benefits restoration requirements of section
803.</text>
</paragraph></subsection><subsection id="H1DF83CDDA7A74331B45118DDBA9480A6"><enum>(b)</enum><header>Establishment of
Emergency Retiree Health Loan Guarantee Program</header><text>There is
established the Retiree Health Loan Guarantee Program, to be administered by
the Board, the purpose of which is to provide loan guarantees to eligible plan
sponsors in accordance with this section.</text>
</subsection><subsection id="H92C3B435B2564B5E9BD13641B72000EC"><enum>(c)</enum><header>Retiree Health
Loan Guarantee Board membership</header><text>There is established a Retiree
Health Loan Guarantee Board, which shall be composed of—</text>
<paragraph id="H2A89308EBB8D40C0B143201B5F8FAFC0"><enum>(1)</enum><text>the Secretary of
Labor, who shall serve as Chairman of the Board;</text>
</paragraph><paragraph id="H97387E9ABB2F49DE9BE1F207C6F06FFD"><enum>(2)</enum><text>the Secretary of
Commerce;</text>
</paragraph><paragraph id="H3DE7FB1DD57241238D19B62C1BB8A384"><enum>(3)</enum><text>the Secretary of
the Treasury;</text>
</paragraph><paragraph id="H581F379BF2324DCFB9BE4519C777ACE5"><enum>(4)</enum><text>the Secretary of
Health and Human Services; and</text>
</paragraph><paragraph id="H981AD42C887947DCBB32EEFFF27EC2F"><enum>(5)</enum><text>the Chairman of the
Council of Economic Advisers.</text>
</paragraph></subsection><subsection id="H7DD9F9E1B37F4E468F60951B3DAC7747"><enum>(d)</enum><header>Retiree Health
Loan Guarantee Program</header>
<paragraph id="HB80976587D2548D2A667B1E764AD2938"><enum>(1)</enum><header>Authority</header><text>The
Program may guarantee loans provided by private banking and investment
institutions to eligible plan sponsors for purposes of assisting such plan
sponsors to meet their obligations under section 803. Such loan guarantees
shall be provided to the extent provided in advance in appropriation Acts
pursuant to paragraph (4) and only in accordance with the procedures, rules,
and regulations established by the Board.</text>
</paragraph><paragraph id="H701B5D16ABA8412BAECB82EEE05E88BE"><enum>(2)</enum><header>Total guarantee
limit</header><text>The aggregate amount of loans guaranteed and outstanding at
any time under this section may not exceed $5,000,000,000.</text>
</paragraph><paragraph id="H220E898E59964770BCE946266CC48C00"><enum>(3)</enum><header>Individual
guarantee limit</header><text>The aggregate amount of loans guaranteed under
this section with respect to a single eligible plan sponsor may not exceed
$5,000,000.</text>
</paragraph><paragraph id="H7A81AE8F160D4BA0A705FF714D3FFAEA"><enum>(4)</enum><header>Additional
costs</header><text>For the additional cost of loans guaranteed under this
subsection, including the costs of modifying the loans, as defined in section
502 of the Congressional Budget Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>), there is
authorized to be appropriated $200,000,000, to remain available until
expended.</text>
</paragraph></subsection><subsection id="H159D8F0FCE154CEC9CACF898A5C660F8"><enum>(e)</enum><header>Requirements for
loan guarantees</header><text>A loan guarantee may be issued under this section
upon application to the Board by an eligible plan sponsor pursuant to an
agreement to provide a loan to that eligible plan sponsor by a private bank or
investment company, if the Board determines that—</text>
<paragraph id="HB8827A6A7FB64BEA92D426B1F64DEE6"><enum>(1)</enum><text>credit is not
otherwise available to that eligible plan sponsor under reasonable terms and
conditions sufficient to meet its financing needs with respect to the
restoration of retiree health benefits, as reflected in the financial and
business plans of that eligible plan sponsor;</text>
</paragraph><paragraph id="H1D245906AB85460FB9633C86AAAF8221"><enum>(2)</enum><text>the prospective
earning power of that eligible plan sponsor, together with the character and
value of the security pledged, furnish reasonable assurance of repayment of the
loan to be guaranteed in accordance with its terms;</text>
</paragraph><paragraph id="H25EB28449B0E46DC83C88420E98A47B"><enum>(3)</enum><text>the loan to be
guaranteed bears interest at a rate determined by the Board to be reasonable,
taking into account the current average yield on outstanding obligations of the
United States with remaining periods of maturity comparable to the maturity of
such loan;</text>
</paragraph><paragraph id="H5B9C41FC3E6642B686BD918CC635DDAF"><enum>(4)</enum><text>the loan to be
guaranteed will materially assist that eligible plan sponsor to discharge its
obligation to comply with the restoration of benefits requirements contained in
section 803; and</text>
</paragraph><paragraph id="H56B7D756FD604C3D90D9CCE86F3F889F"><enum>(5)</enum><text>the eligible plan
sponsor has agreed to an audit by the Government Accountability Office prior to
the issuance of the loan guarantee and annually while any such guaranteed loan
is outstanding.</text>
</paragraph></subsection><subsection id="H78971A6D97AF429CB3B2D922D317FD13"><enum>(f)</enum><header>Terms and
conditions of loan guarantee</header>
<paragraph id="H18B2AB8B48E945B1AE1C2EC23790A07B"><enum>(1)</enum><header>Loan
duration</header><text>All loans guaranteed under this section shall be payable
in full not later than December 31, 2015, and the terms and conditions of each
such loan shall provide that the loan may not be amended or any provision
thereof waived without the consent of the Board.</text>
</paragraph><paragraph id="HCCCE454475814B5886B24E5B5E085781"><enum>(2)</enum><header>Loan
security</header><text>Any commitment to issue a loan guarantee under this
section shall contain such affirmative and negative covenants and other
protective provisions that the Board determines are appropriate.</text>
</paragraph><paragraph id="H9E87AA7E23A64A829C00721E6C390082"><enum>(3)</enum><header>Fees</header><text>An
eligible plan sponsor receiving a guarantee under this section shall pay a fee
in an amount equal to 0.5 percent of the outstanding principal balance of the
guaranteed loan to the Department of the Treasury.</text>
</paragraph></subsection><subsection id="H843DF3EF229146B89102FE3E692F93D1"><enum>(g)</enum><header>Reports to
Congress</header><text>The Secretary of Labor shall submit annually to each
House of the Congress a full report of the activities of the Board under this
section during 2008 and 2009, and annually thereafter during such period as any
loan guaranteed under this section is outstanding. Such report shall be
submitted not later than January 31 of each year (beginning in 2008).</text>
</subsection><subsection id="H126DA6AE890A479095CCCD5697811C93"><enum>(h)</enum><header>Salaries and
administrative expenses</header><text>For necessary expenses to administer the
Program, there is authorized to be appropriated to the Department of Labor (and
to be transferred to the Office of the Assistant Secretary for Pension and
Welfare Benefits Administration) $10,000,000, to remain available until
expended.</text>
</subsection><subsection id="H8A5E0B47B44F45BFA14589EDFB40045"><enum>(i)</enum><header>Termination of
guarantee authority</header><text>The authority of the Board to make
commitments to guarantee any loan under this section shall terminate on
December 31, 2013.</text>
</subsection><subsection id="H9804887BB56E4BCCA859FC00E76BD563"><enum>(j)</enum><header>Regulatory
action</header><text>The Board shall issue such final procedures, rules, and
regulations as may be necessary to carry out this section not later than 90
days after the date of enactment of the <short-title>Emergency Retiree Health Benefits Protection Act of
2007</short-title>. In no event shall the Board issue a procedure, rule, or
regulation which authorizes it to approve or deny any application for a loan
guarantee in more than 270 days after receipt of such application.</text>
</subsection><subsection id="H660775E011AB4A0E9343FA6E7C64231"><enum>(k)</enum><header>Emergency
designation</header><text>The entire amount made available to carry out this
section—</text>
<paragraph id="H077D448BEF8B4236A89517F10021E758"><enum>(1)</enum><text>is designated by
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)); and</text>
</paragraph><paragraph id="HCD8B54A229C640B3007010688DF51EBC"><enum>(2)</enum><text>shall be available
only to the extent that an official budget request that includes designation of
the entire amount as an emergency requirement (as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985) is transmitted by the
President to the Congress.</text>
</paragraph></subsection></section><section id="HD88F1CDAC06D42CC86A526077B2C552E"><enum>806.</enum><header>Effect on other
claims</header>
<subsection id="H3E99085F0B70417A82AD80C29D284620"><enum>(a)</enum><header>Other claims
unaffected</header><text>Nothing contained in this part shall be construed to
alter, impair, or eliminate any claim for retiree health benefits based on
conduct alleged to violate the terms of a group health plan, any provision of
this Act (other than this part), or both, regardless of whether such conduct
occurred prior to, on, or after, the effective date of this part.</text>
</subsection><subsection id="HD5683C4E226444D9A0C5F55DCC623EBA"><enum>(b)</enum><header>Other causes of
action not authorized</header><text>Unless the conduct giving rise to a claim
for retiree health benefits is alleged to violate the provisions of this part,
nothing contained in this part shall be construed to authorize any other cause
of action for the recovery of retiree health benefits.</text>
</subsection></section><section id="H00E1D8D1632A4AB4BDFAA8C4C79701F"><enum>807.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary may promulgate such
regulations as may be necessary to carry out the provisions of this part. The
Secretary may promulgate any interim final rules as the Secretary deems are
appropriate to carry out this part.</text>
</section><section id="H7EED2D8915C74FC8B2C9C113E5FABD00"><enum>808.</enum><header>Enforcement</header><text display-inline="no-display-inline">The enforcement provisions of sections 501
and 502 shall be applicable to this
part.</text>
</section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB7DDE7322036449E8DF67E28A9FEC6AD"><enum>(2)</enum><header>Civil penalty
Section</header><text>Section 502(c) of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(e)</external-xref>) is amended—</text>
<subparagraph id="H895EEEF90DAA4751B9006B1327EA3670"><enum>(A)</enum><text>by redesignating
paragraph (9) as paragraph (10); and</text>
</subparagraph><subparagraph id="HC94FF73F37D74742B0B66B2E7B670354"><enum>(B)</enum><text>by inserting after
paragraph (8) the following new paragraph:</text>
<quoted-block act-name="Employee Retirement Income Security Act of 1974" id="H241E0AB996604152A43C19F41B9C7CD5">
<paragraph id="H36A7BA0A409E49E3B8708512FCAEC23" indent="up1"><enum>(9)</enum><text>The Secretary may assess a civil
penalty of not more than $1,000 for each separate violation of section 801,
802, or 803 by any person individually with respect to each participant or
beneficiary aggrieved by such
violation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFEF0F805144B491585BEDCF9225FA619"><enum>(3)</enum><header>Conforming
amendment</header><text>The table of contents in section 1 of such Act is
amended by inserting after the item relating to section 734 the following new
items:</text>
<quoted-block id="H1C4BC113FE4843B4A262E43D61E0D962" style="USC">
<toc>
<toc-entry idref="HF7F4968A98F647079D7F28001678C8EA" level="part">Part 8—Emergency retiree health benefit protections</toc-entry>
<toc-entry idref="H8CF114223C9B4753BB39ED061B8F6F6C" level="section">Sec. 801. Prohibition against post-retirement reductions of
retiree health benefits by group health plans.</toc-entry>
<toc-entry idref="HE6C5EE4920FD42FBA2C0DA31ADCFC8C" level="section">Sec. 802. Adoption by group health plans of provision barring
post-retirement reductions in retiree health benefits.</toc-entry>
<toc-entry idref="HA9401460C0C84CDAA453A01EA14C28F6" level="section">Sec. 803. Restoration by group health plans of benefits reduced
after retirement.</toc-entry>
<toc-entry idref="H90C56DBBB2444F7CBAD357196DA06EC" level="section">Sec. 804. Exemption from restoration of benefits
requirements.</toc-entry>
<toc-entry idref="H7FC5686FCC9242D49CC54CEFBE46762C" level="section">Sec. 805. Establishment of Emergency Retiree Health Loan
Guarantee Program.</toc-entry>
<toc-entry idref="HD88F1CDAC06D42CC86A526077B2C552E" level="section">Sec. 806. Effect on other claims.</toc-entry>
<toc-entry idref="H00E1D8D1632A4AB4BDFAA8C4C79701F" level="section">Sec. 807. Regulations.</toc-entry>
<toc-entry idref="H7EED2D8915C74FC8B2C9C113E5FABD00" level="section">Sec. 808.
Enforcement.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HD6F8885EF00F4B47BA118BEE647EC69F"><enum>(b)</enum><header>Separability of
provisions</header><text>The provisions of section 509 of the
<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1139">29 U.S.C. 1139</external-xref>) shall be applicable to this section and the
amendments made thereby.</text>
</subsection><subsection id="HE5A5F9D370054B6000216C7D01E484C8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Multiemployer
Modifications</header>
<section id="H9B69D247258F41579850905BC57CEFC8"><enum>201.</enum><header>Crediting and
termination of surcharges in connection with multiemployer plan in critical
status upon adoption of rehabilitation plan</header>
<subsection id="H2840393A9DB645CCBB45C7007BDE5339"><enum>(a)</enum><header>Amendments to
ERISA</header><text>Section 305(e)(7) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(e)(7)</external-xref>) is amended by adding at the end the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9D88736401BD44C4A3BD434FC89346BB" style="OLC">
<subparagraph id="H441DB839941649B1B1AF3DA7FE5BF715"><enum>(F)</enum><header>Special rule in
the case of sufficient contribution rates</header><text display-inline="yes-display-inline">In any case in which the plan sponsor of a
multiemployer plan which is in critical status and with respect to which the
rehabilitation plan has been adopted pursuant to this subsection determines
that the terms of a collective bargaining agreement (or other agreement
pursuant to which the employer contributes) provide for a contribution rate
increase that became effective during the 24-month period before the initial
critical year and determines that such agreement includes terms consistent with
a schedule presented by the plan sponsor under paragraph (1)(B)(i) (as modified
under paragraph (3)(B))—</text>
<clause id="H84097894B6E0424393DDAECFEE26E56"><enum>(i)</enum><text>surcharges payable
by an employer under this paragraph in connection with such critical status
shall cease to be payable by the employer with respect to employees covered by
such agreement on and after the date of such determination by the plan sponsor,
and</text>
</clause><clause id="H92E9F45E430A4F00A133F4B328E899F0"><enum>(ii)</enum><text>any such
surcharges which have been paid by an employer in connection with such critical
status with respect to such employees covered under such agreement shall be
credited against contributions payable by such employer under such
schedule.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDD06C0F180EB4EC0A040286052484245"><enum>(b)</enum><header>Conforming
amendments to the Code</header><text>Section 432(e)(7) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H274183160DC34A59995EB686E0FAF917" style="OLC">
<subparagraph display-inline="no-display-inline" id="H8CA0F9203FE34A208DC131E8B20AFC1"><enum>(F)</enum><header>Special rule in
the case of sufficient contribution rates</header><text display-inline="yes-display-inline">In any case in which the plan sponsor of a
multiemployer plan which is in critical status and with respect to which the
rehabilitation plan has been adopted pursuant to this subsection determines
that the terms of a collective bargaining agreement (or other agreement
pursuant to which the employer contributes) provide for a contribution rate
increase that became effective during the 24-month period before the initial
critical year and determines that such agreement includes terms consistent with
a schedule presented by the plan sponsor under paragraph (1)(B)(i) (as modified
under paragraph (3)(B))—</text>
<clause id="HD29F543AF862465292D967D2FE80506"><enum>(i)</enum><text>surcharges payable
by an employer under this paragraph in connection with such critical status
shall cease to be payable by the employer with respect to employees covered by
such agreement on and after the date of such determination by the plan sponsor,
and</text>
</clause><clause id="HE1F6F808F73B4C1FAC7455873FE9FDE0"><enum>(ii)</enum><text>any such
surcharges which have been paid by an employer in connection with such critical
status with respect to such employees covered under such agreement shall be
credited against contributions payable by such employer under such
schedule.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H977B94F59FF24D6CB3CDC17C78769000"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to determinations made on or after the date of the enactment of this
Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H3191C47199F94B2B95005FC92F195278" section-type="subsequent-section"><enum>202.</enum><header>Schedules required
to be provided by multiemployer plans in endangered status</header>
<subsection id="H877A0453C7B447B3929F518041875CE8"><enum>(a)</enum><header>Amendments to
ERISA</header><text>Section 305(c)(1)(B)(i) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(c)(1)(B)(i)</external-xref>) is amended—</text>
<paragraph id="H6C130BB90FDC49ADA32D5C52174B43DA"><enum>(1)</enum><text>by striking
<quote>bargaining parties 1 or more schedules</quote> and all that follows
through<linebreak></linebreak>
<quote>including—</quote> and inserting <quote>bargaining
parties—</quote>;</text>
</paragraph><paragraph id="HD4EE1FAA3F61455D8FFCBE20AE436DE7"><enum>(2)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting after
<quote>(I)</quote> the following: <quote>a schedule showing revised benefit
structures, revised contribution structures, or both, which, if adopted, may
reasonably be expected to enable the multimeployer plan to meet the applicable
benchmarks in accordance with the funding improvement plan, including</quote>;
and</text>
</paragraph><paragraph id="HA892DCBD61DE4583B0B7777600009332"><enum>(3)</enum><text>by striking
subclause (II) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H34989BD75547438EA2CD43CAC5AAB8D1" style="OLC">
<subclause id="H9F1F7BA23FC944B1BFD0CBB3A547496D"><enum>(II)</enum><text display-inline="yes-display-inline">a schedule which would consist of a
combination of benefit modifications and contribution increases,
and</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H439547A98FFD4CA0AF2D8292A33EE01B"><enum>(b)</enum><header>Conforming
amendments to the Code</header><text>Section 432(c)(1)(B)(i) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph id="H5B1D9FE49EAA44EFABF1DF64D88D800"><enum>(1)</enum><text>by
striking <quote>bargaining parties 1 or more schedules</quote> and all that
follows through<linebreak></linebreak>
<quote>including—</quote> and inserting
<quote>bargaining parties—</quote>;</text>
</paragraph><paragraph id="H48938326A5964600B0E6AA5FD02400"><enum>(2)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting after
<quote>(I)</quote> the following: <quote>a schedule showing revised benefit
structures, revised contribution structures, or both, which, if adopted, may
reasonably be expected to enable the multimeployer plan to meet the applicable
benchmarks in accordance with the funding improvement plan, including</quote>;
and</text>
</paragraph><paragraph id="HFFEEC6109CEA442F80C45CDEAC4535C"><enum>(3)</enum><text>by
striking subclause (II) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF984ED5BF5744A38A9658FDD14A6BF26" style="OLC">
<subclause id="H71C1E61D5DC946E700D4A5B1C0ACAC2D"><enum>(II)</enum><text display-inline="yes-display-inline">a schedule which would consist of a
combination of benefit modifications and contribution increases,
and</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HEAFBC5C4CB11418EB9E0FDAF8002EA0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to funding improvement plans adopted on or after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3E87EDF1761E43F099A22887A8274371" section-type="subsequent-section"><enum>203.</enum><header>Amendments to
funding rules for multiemployer plans</header>
<subsection commented="no" id="H46F93D5561E245B2B85FAF1361E2475"><enum>(a)</enum><header>Amendment related
to sections 201 and 211</header>
<paragraph id="HFD845EED4C2F4C69A8C7824102E66ED2"><enum>(1)</enum><header>In
general</header><text>Section 201(b)(2)(A) of the Pension Protection Act of
2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 867) is amended by striking <quote>has not
used</quote> and inserting <quote>has not adopted, or ceased
using,</quote>.</text>
</paragraph><paragraph id="H5EC162E44AF945F69B00FCD5080065E9"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply as if
included in the enactment of section 201 of the Pension Protection Act of
2006.</text>
</paragraph></subsection><subsection commented="no" id="H61827FEB19D84A319162A0965CBB00BF"><enum>(b)</enum><header>Amendments
related to sections 202 and 212</header>
<paragraph commented="no" id="HCCF3A833DECB4248AD30410003F7F8C3"><enum>(1)</enum><header>Amendments to
the Employee Retirement Income Security Act of 1974</header>
<subparagraph commented="no" id="H1B2CCE87641643AA924093145B41ADDF"><enum>(A)</enum><text display-inline="yes-display-inline">Section 305(b)(3)(C) of the Employee
Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(b)(3)(C)</external-xref>) is amended by
striking <quote>section 101(b)(4)</quote> and inserting <quote>section
101(b)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H4EE3B536F82B4F4F9CDA332DBC861DCF"><enum>(B)</enum><text>Section
305(b)(3)(D) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(b)(3)(D)</external-xref>) is amended by striking
<quote>The Secretary</quote> in clause (iii) and inserting <quote>The Secretary
of the Treasury, in consultation with the Secretary</quote>.</text>
</subparagraph><subparagraph commented="no" id="HBAFB3259E97A4528A7A91C37751EB635"><enum>(C)</enum><text>Section 305(c)(7)
of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(c)(7)</external-xref>) is amended—</text>
<clause commented="no" id="H3FC9B4C08F894C9C00FAFE0000461590"><enum>(i)</enum><text>by striking
<quote>to agree on</quote> and all that follows in subparagraph (A)(ii) and
inserting <quote>to adopt a contribution schedule with terms consistent with
the funding improvement plan and a schedule from the plan sponsor,</quote>,
and</text>
</clause><clause commented="no" id="H628A815D282845F6A150D320E9D4B1DD"><enum>(ii)</enum><text>by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H13696C3145C547F583B75C4174948700" style="OLC">
<subparagraph commented="no" id="HE85090B60DDF47A8BA641F604760B32E"><enum>(B)</enum><header>Date of
implementation</header><text>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.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</clause><clause commented="no" id="HF61B7BFD893F47F1A3B0854ECAEEB648"><enum>(iii)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H3D3627769D2E4F688CABAA2005F50C3" style="OLC">
<subparagraph commented="no" id="H659EE94D13E4493DB8678B9DB7B1CA85"><enum>(C)</enum><header>Failure to make
scheduled contributions</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" id="H47C4EEDE62DC426590255B1DA0F2D5E8"><enum>(D)</enum><text>Section 305(e) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(e)</external-xref>) is amended—</text>
<clause commented="no" id="H5494158B9113443CB3B4B723BDE5313"><enum>(i)</enum><text>in paragraph
(3)(C)—</text>
<subclause commented="no" id="H4744BAB1A01C47FDA6746047CAEB15D6"><enum>(I)</enum><text>by striking all
that follows <quote>to adopt a</quote> in clause (i)(II) and inserting
<quote>to adopt a contribution schedule with terms consistent with the
rehabilitation plan and a schedule from the plan sponsor under paragraph
(1)(B)(i),</quote>,</text>
</subclause><subclause commented="no" id="H747CAF278BD74116B23DE644E07EA4C"><enum>(II)</enum><text>by striking clause
(ii) and inserting the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H8F8016AE869A47899377AB0000B85B1D" style="OLC">
<clause id="H07A3A339D96C423BA5F70851AA104973"><enum>(ii)</enum><header>Date of
implementation</header><text>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.</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subclause><subclause commented="no" id="H75E8565273324D1AA277443FFC00CEFF"><enum>(III)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HA252CF0DD8CF42099247A9B15B260023" style="OLC">
<clause commented="no" id="H692115BEA325460B829601EC66FAAD50"><enum>(iii)</enum><header>Failure to
make scheduled contributions</header><text>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.</text>
</clause><after-quoted-block>,</after-quoted-block></quoted-block>
</subclause></clause><clause commented="no" id="H7BE2EEA2DF6B41C700AE7140257E963D"><enum>(ii)</enum><text>in paragraph
(4)—</text>
<subclause commented="no" id="H8F5E776556034117AD12DBAC37E998D0"><enum>(I)</enum><text>by striking
<quote>the date of</quote> in subparagraph (A)(ii), and</text>
</subclause><subclause commented="no" id="H12C43BE83BF34C68BE10D3AE63EB5784"><enum>(II)</enum><text>by striking
<quote>and taking</quote> in subparagraph (B) and inserting <quote>but
taking</quote>,</text>
</subclause></clause><clause commented="no" id="HB33EBAEC45E44C21A362E322CF55D9C0"><enum>(iii)</enum><text>in paragraph
(6)—</text>
<subclause commented="no" id="H0A222FC9707C41F88DCDE421D7294F99"><enum>(I)</enum><text>by striking
<quote>paragraph (1)(B)(i)</quote> and inserting <quote>the last sentence of
paragraph (1)</quote>, and</text>
</subclause><subclause commented="no" id="HCB70E358F3BC4D4BAD955F8D91E887E7"><enum>(II)</enum><text>by striking
<quote>established</quote> and inserting <quote>establish</quote>,</text>
</subclause></clause><clause commented="no" id="H6B0BD93D8B864F5F8E38491C7C805F6E"><enum>(iv)</enum><text>in paragraph
(8)(C)(iii)—</text>
<subclause commented="no" id="H9BBF24BE0EEA4B18853D83F7F34DA063"><enum>(I)</enum><text>by striking
<quote>the Secretary</quote> in subclause (I) and inserting <quote>the
Secretary of the Treasury, in consultation with the Secretary</quote>,
and</text>
</subclause><subclause commented="no" id="HCF56FB7C758244FE8FD834EFDCC18B96"><enum>(II)</enum><text>by striking
<quote>Secretary</quote> in the last sentence and inserting <quote>Secretary of
the Treasury</quote>, and</text>
</subclause></clause><clause commented="no" id="HF32BDB625EC64E8581A5437FDBF5AD68"><enum>(v)</enum><text>by striking
<quote>an employer's withdrawal liability</quote> in paragraph (9)(B) and
inserting <quote>the allocation of unfunded vested benefits to an
employer</quote>.</text>
</clause></subparagraph><subparagraph commented="no" id="H90E95A700137441BBA24A9C11E0043FC"><enum>(E)</enum><text>Section
305(f)(2)(A)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(f)(2)(A)(i)</external-xref>) is amended by
inserting <quote>to a participant or beneficiary whose annuity starting date
(as defined in section 205(h)(2)) occurs after such date,</quote> after the
comma at the end.</text>
</subparagraph><subparagraph commented="no" id="H276876BDBC0742EEABAC86E7E2E2E5A9"><enum>(F)</enum><text>Section 305(g) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1085">29 U.S.C. 1085(g)</external-xref>) is amended by inserting <quote>under subsection
(c)</quote> after <quote>funding improvement plan</quote> the first place it
appears.</text>
</subparagraph><subparagraph commented="no" id="H7CA1F767C9304017B595003311438D12"><enum>(G)</enum><text>Section 302(b)(3)
of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1082">29 U.S.C. 1082(b)(3)</external-xref>) is amended by striking <quote>the plan
adopts</quote> and inserting <quote>the plan sponsor adopts</quote>.</text>
</subparagraph><subparagraph commented="no" id="H42381EE6B4F64A328979C0D5C6765F13"><enum>(H)</enum><text>Section 502(c)(2)
of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(c)(2)</external-xref>) is amended by striking
<quote>101(b)(4)</quote> and inserting <quote>101(b)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H8005DC8514594FA4A64B46097FE375C2"><enum>(I)</enum><text>Section
502(c)(8)(A) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1132">29 U.S.C. 1132(c)(8)(A)</external-xref>) is amended by inserting
<quote>plan</quote> after <quote>multiemployer</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="HAD3C7EF1832C4B85BAECCFB098D63572"><enum>(2)</enum><header>Conforming
amendments to the Internal Revenue Code of 1986</header>
<subparagraph commented="no" id="HAC04A80E88AF47EAB75633D49E4BF5E1"><enum>(A)</enum><text display-inline="yes-display-inline">Section 432(b)(3)(C) of the Internal
Revenue Code of 1986 is amended by striking <quote>section 101(b)(4)</quote>
and inserting <quote>section 101(b)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H4F5CA936BED443D09904F8D734CFCD27"><enum>(B)</enum><text>Section
432(b)(3)(D)(iii) of such Code is amended by striking <quote>The Secretary of
Labor</quote> and inserting <quote>The Secretary, in consultation with the
Secretary of Labor</quote>.</text>
</subparagraph><subparagraph commented="no" id="H6A98E9067F4341CDB4ACDEFAEE52C618"><enum>(C)</enum><text>Section 432(c) of
such Code is amended—</text>
<clause commented="no" id="H6EF01AE8B5C345D7966DFDFE5CA6A0A5"><enum>(i)</enum><text>in paragraph (3),
by striking <quote>section 304(d)</quote> in subparagraph (A)(ii) and inserting
<quote>section 431(d)</quote>, and</text>
</clause><clause commented="no" id="H405B92ADFBA84ACD99E689C3572D007E"><enum>(ii)</enum><text>in paragraph
(7)—</text>
<subclause commented="no" id="H687C04A63CB7435A8B8B038574F4961"><enum>(I)</enum><text>by striking
<quote>to agree on</quote> and all that follows in subparagraph (A)(ii) and
inserting <quote>to adopt a contribution schedule with terms consistent with
the funding improvement plan and a schedule from the plan sponsor,</quote>,
and</text>
</subclause><subclause commented="no" id="HA7CCBF118CC7430DB5162EA1454EBAE5"><enum>(II)</enum><text>by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H79D43E8B51DC47F29192B37B002F6671" style="OLC">
<subparagraph commented="no" id="HA5D2CC4945EC4F37AC0011F52D990000"><enum>(B)</enum><header>Date of
implementation</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subclause></clause></subparagraph><subparagraph commented="no" id="HD0D7E20BFE6E4ACAAE341BBC1DBE9390"><enum>(D)</enum><text>Section 432(e) of
such Code is amended—</text>
<clause commented="no" id="H2A553736334744D0BBF1E0469BB8661"><enum>(i)</enum><text>in paragraph
(3)(C)—</text>
<subclause commented="no" id="H6A5C78B8FC334550A1948C3C2B7D0665"><enum>(I)</enum><text>by striking all
that follows <quote>to adopt a</quote> in clause (i)(II) and inserting
<quote>to adopt a contribution schedule with terms consistent with the
rehabilitation plan and a schedule from the plan sponsor under paragraph
(1)(B)(i),</quote>, and</text>
</subclause><subclause commented="no" id="H527F0789317441AF99289C3BB6BF6030"><enum>(II)</enum><text>by striking
clause (ii) and inserting the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HB9DF016A06484283851578BEB17E9E8" style="OLC">
<clause commented="no" id="HB8F0930B90254C75AC82C98D4B0241B2"><enum>(ii)</enum><header>Date of
implementation</header><text>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.</text>
</clause><after-quoted-block>,</after-quoted-block></quoted-block>
</subclause></clause><clause commented="no" id="H18CA23144C524079A6AF25E40057DCF3"><enum>(ii)</enum><text>in paragraph
(4)—</text>
<subclause commented="no" id="H505A5849CC224924B9E82EE1C9977CC9"><enum>(I)</enum><text>by striking
<quote>the date of</quote> in subparagraph (A)(ii), and</text>
</subclause><subclause commented="no" id="H97FA04FA63264DED968FEA62524B5E2F"><enum>(II)</enum><text>by striking
<quote>and taking</quote> in subparagraph (B) and inserting <quote>but
taking</quote>,</text>
</subclause></clause><clause commented="no" id="H1906D88FDD464A24B649725C5DF2CD5D"><enum>(iii)</enum><text>in paragraph
(6)—</text>
<subclause commented="no" id="H0069FADAF0F1477FBD7FB456A317F6D5"><enum>(I)</enum><text>by striking
<quote>paragraph (1)(B)(i)</quote> and inserting <quote>the last sentence of
paragraph (1)</quote>, and</text>
</subclause><subclause commented="no" id="H6BF292D86E074A7D924B57E90081E8B5"><enum>(II)</enum><text>by striking
<quote>established</quote> and inserting <quote>establish</quote>,</text>
</subclause></clause><clause commented="no" id="H1809CDA05465443AB700C6C0B3AE7C72"><enum>(iv)</enum><text>in paragraph
(8)—</text>
<subclause commented="no" id="HBD5748F81CD649988E1324F2AD217FA6"><enum>(I)</enum><text>by striking
<quote>section 204(g)</quote> in subparagraph (A)(i) and inserting
<quote>section 411(d)(6)</quote>,</text>
</subclause><subclause commented="no" id="HFEEC5BE965364C6F823CB5AFE7F5F6D9"><enum>(II)</enum><text>by inserting
<quote>of the Employee Retirement Income Security Act of 1974</quote> after
<quote>4212(a)</quote> in subparagraph (C)(i)(II),</text>
</subclause><subclause commented="no" id="H753B922DA8CC4CDC9776C3D4145F6D1"><enum>(III)</enum><text>by striking
<quote>the Secretary of Labor</quote> in subparagraph (C)(iii)(I) and inserting
<quote>the Secretary, in consultation with the Secretary of Labor</quote>,
and</text>
</subclause><subclause commented="no" id="HDA24C7177F7944CDB015F7B115318250"><enum>(IV)</enum><text>by striking
<quote>the Secretary of Labor</quote> in the last sentence of subparagraph
(C)(iii) and inserting <quote>the Secretary</quote>, and</text>
</subclause></clause><clause commented="no" id="HADD80AF8D011424997D269400E8703F"><enum>(v)</enum><text>by striking
<quote>an employer's withdrawal liability</quote> in paragraph (9)(B) and
inserting <quote>the allocation of unfunded vested benefits to an
employer</quote>.</text>
</clause></subparagraph><subparagraph commented="no" id="H569478EDC1C94CA6AF67E557157CB1DD"><enum>(E)</enum><text>Section
432(f)(2)(A)(i) of such Code is amended—</text>
<clause commented="no" id="H7A46101A813142BBB8FC31222EB8E59D"><enum>(i)</enum><text>by striking
<quote>section 411(b)(1)(A)</quote> and inserting <quote>section
411(a)(9)</quote>, and</text>
</clause><clause commented="no" id="H11091697E7F9490593D307219BE71CC"><enum>(ii)</enum><text>by inserting
<quote>to a participant or beneficiary whose annuity starting date (as defined
in section 417(f)(2)) occurs after such date,</quote> after the comma at the
end.</text>
</clause></subparagraph><subparagraph commented="no" id="H72E3FE073225490282D7BEC1081686D"><enum>(F)</enum><text>Section 432(g) of
such Code is amended by inserting <quote>under subsection (c)</quote> after
<quote>funding improvement plan</quote> the first place it appears.</text>
</subparagraph><subparagraph commented="no" id="HE86824F96FD6454AA996544626266EAE"><enum>(G)</enum><text>Section 432(i) of
such Code is amended—</text>
<clause commented="no" id="H508A5B2C1F694953994EF57D5BC7C15E"><enum>(i)</enum><text>by striking
<quote>section 412(a)</quote> in paragraph (3) and inserting <quote>section
431(a)</quote>, and</text>
</clause><clause commented="no" id="H37E36B2BDB87402F81C59DE871F5FEEC"><enum>(ii)</enum><text>by striking
paragraph (9) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H02D8F3A146C94925BB2E89586E87B2E4" style="OLC">
<paragraph commented="no" id="HD4EC859EF9DF4619AB5C4E59EFAFDDC"><enum>(9)</enum><header>Plan
sponsor</header><text>For purposes of this section, section 431, and section
4971(g)—</text>
<subparagraph commented="no" id="HAC48F481A79E4A62853E40AD45258CF9"><enum>(A)</enum><header>In
general</header><text>The term <term>plan sponsor</term> 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.</text>
</subparagraph><subparagraph commented="no" id="HF050E452AA1641968D8D26FFD10DFFE"><enum>(B)</enum><header>Special rule for
section <enum-in-header>404(c)</enum-in-header> plans</header><text>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).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" id="H0BB2A6130E9E410F95BE38DE371233D2"><enum>(H)</enum><text>Section 412(b)(3)
of such Code is amended by striking <quote>the plan adopts</quote> and
inserting <quote>the plan sponsor adopts</quote>.</text>
</subparagraph><subparagraph commented="no" id="HCEE79B305A984A3EB211EEC52F6F8DBC"><enum>(I)</enum><text>Section 4971(g)(4)
of such Code is amended—</text>
<clause commented="no" id="H2BB79782F75E463D9B21CB5BB7FD87A9"><enum>(i)</enum><text>in subparagraph
(B)(ii), by striking <quote>first day of</quote> and inserting <quote>day
following the close of</quote>, and</text>
</clause><clause commented="no" id="HE056C524E86348C484ADFE7FCCD34B00"><enum>(ii)</enum><text>by striking
clause (ii) of subparagraph (C) and inserting the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H02E8282296C24CAA874DF028F09C303B" style="OLC">
<clause commented="no" id="HAB7E25FD41F64D1DB898BD6FF964BA00"><enum>(ii)</enum><header>Plan
sponsor</header><text>For purposes of clause (i), the term <term>plan
sponsor</term> has the meaning given such term by section
432(i)(9).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph commented="no" id="H2639514A79B34A63959FF1D80081FFF9"><enum>(3)</enum><header>Amendments to
the Pension Protection Act of 2006</header>
<subparagraph commented="no" id="H4E9506EA68BE497E95B400C67989F62"><enum>(A)</enum><text>Section 212(b)(2)
of the Pension Protection Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 917) is
amended by striking <quote>Section 4971(c)(2) of such Code</quote> and
inserting <quote>Section 4971(e)(2) of such Code</quote>.</text>
</subparagraph><subparagraph commented="no" id="H4ED926DF536B4D2987DF57DE6CD15E2"><enum>(B)</enum><text>Section 212(e)(1)
of such Act (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 917) is amended by inserting
<quote>, 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</quote>
before the period at the end.</text>
</subparagraph><subparagraph commented="no" id="H291763B6CCFB4CD0B86338E6A333914B"><enum>(C)</enum><text>Section 212(e)(2)
of such Act (<external-xref legal-doc="public-law" parsable-cite="pl/109/280">Public Law 109–280</external-xref>; 120 Stat. 917) is amended by striking
<quote>section 305(b)(3) of the Employee Retirement Income Security Act of
1974</quote> and inserting <quote>section 432(b)(3) of the Internal Revenue
Code of 1986</quote>.</text>
</subparagraph></paragraph><paragraph id="H21CDE9161C5E410FA51FEA5E1E22A1D9"><enum>(4)</enum><header>Effective
dates</header>
<subparagraph id="H61B0D62421384596AE0371FFA973F239"><enum>(A)</enum><text display-inline="yes-display-inline">The amendments made by paragraphs (1) and
(2) shall take effect as if included in the enactment of sections 202 and 212,
respectively, of the Pension Protection Act of 2006.</text>
</subparagraph><subparagraph id="HE6C473F07B79424EA985E6FB0041A908"><enum>(B)</enum><text>The amendments
made by paragraph (3) shall take effect as if included in the enactment of
section 212 of the Pension Protection Act of 2006.</text>
</subparagraph></paragraph></subsection></section><enum>III</enum><header>Single-Employer
Modifications</header>
<section display-inline="no-display-inline" id="H773C0D62C5014F9583CA508EF9F474A7" section-type="subsequent-section"><enum>301.</enum><header>Asset
smoothing</header>
<subsection id="HCAC154BF0A014E4EB4D405E02C2F03D8"><enum>(a)</enum><header>Amendment to
ERISA</header><text>The last sentence of section 303(g)(3)(B) of the Employee
Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083(g)(3)(B)</external-xref>) is amended to
read as follows: <quote>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.</quote>.</text>
</subsection><subsection id="HE366DA24D9C1424D950492F548D068E"><enum>(b)</enum><header>Conforming
amendment to Internal Revenue Code</header><text>The last sentence of section
430(g)(3)(B) of the Internal Revenue Code of 1986 is amended to read as
follows: <quote>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.</quote>.</text>
</subsection><subsection id="H873CA9BC23784BD78600A5709C05AF83"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="H9F3111B401AC4A588744B54BB926FF51" section-type="subsequent-section"><enum>302.</enum><header>Prohibited
payments</header>
<subsection id="HC6EB16CC91DA44C196D99CCEAB864400"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Paragraph (3) of section 206(g) of the Employee Retirement
Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1056">29 U.S.C. 1056(g)(3)</external-xref>) is amended—</text>
<paragraph id="HDE8C0E25586D4396AE02559D3B4B656E"><enum>(1)</enum><text>by striking
subparagraph (C) and redesignating subparagraphs (D) and (E) as subparagraphs
(C) and (D), respectively; and</text>
</paragraph><paragraph id="H62906514A5794CA1839EE2F9A2A67284"><enum>(2)</enum><text>by striking
subparagraph (A) and inserting the following:</text>
<quoted-block id="HD521116591D9426F8D4C69F96B9369F0" style="OLC">
<subparagraph id="H9A2026EE468E4688A0C0A8FE97623E2"><enum>(A)</enum><header>Funding
percentage less than 80 percent</header><text>A defined benefit plan which is a
single-employer plan shall provide that, in any case in which the plan’s
adjusted funding target attainment percentage for a plan year is less than 80
percent, the plan may not pay any prohibited payment after the valuation date
for the plan year to the extent the amount of the payment exceeds the product
of–—</text>
<clause id="H3C2B9AD601DF473390CAA59C6E25A4DB"><enum>(i)</enum><text>the amount of the
payment which could be made without regard to this subsection; multiplied
by</text>
</clause><clause id="H71BC0B0E32F9422AA43D3378A0948258"><enum>(ii)</enum><text>the plan’s
adjusted funding target attainment percentage for the plan
year.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H093E0930EBDB48D4A3C233B75C3761A4"><enum>(b)</enum><header>Conforming
amendment to Internal Revenue Code</header><text>Subsection (d) of section 436
of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="H5D5315ECF72A4EBEB5003B30B2973295"><enum>(1)</enum><text>by striking
paragraph (3) and redesignating paragraphs (4) and (5) as subparagraphs (3) and
(4), respectively; and</text>
</paragraph><paragraph id="H4ED62387091F4FB69300F5D635901DFD"><enum>(2)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block id="H27CB8F99F4904E37847901A2D8A335D0" style="OLC">
<paragraph id="H5E2BEC98B6464A4FAC0072BEABE00E3"><enum>(1)</enum><header>Funding
percentage less than 80 percent</header><text>A defined benefit plan which is a
single-employer plan shall provide that, in any case in which the plan’s
adjusted funding target attainment percentage for a plan year is less than 80
percent, the plan may not pay any prohibited payment after the valuation date
for the plan year to the extent the amount of the payment exceeds the product
of—</text>
<subparagraph id="HAC1A796A4A5445F3006DE4EA03BE879C"><enum>(A)</enum><text>the amount of the
payment which could be made without regard to this subsection; multiplied
by</text>
</subparagraph><subparagraph id="H8CCC96BD436644BCA895FB5C8543C0C6"><enum>(B)</enum><text>the plan’s
adjusted funding target attainment percentage for the plan
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HDEA37A46627F4576B166979D35D669A2"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by subsections (a) and (b) shall apply
as if included in the enactment of sections 103 and 113, respectively, of the
Pension Protection Act of 2006.</text>
</subsection></section><section display-inline="no-display-inline" id="HF5C2D63B5AEA47BE812C14B812CD0116" section-type="subsequent-section"><enum>303.</enum><header>Clarification of age
discrimination rules in connection with the Young Women’s Christian Association
Pension Plan</header>
<subsection display-inline="no-display-inline" id="HE74FEE4F19C84043A47FF6E1678EEE9"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to clarify the age discrimination rules under
section 204(b)(1)(H) of the Employee Retirement Income Security Act of 1974 and
section 4(i)(1) of the Age Discrimination in Employment Act of 1967, as they
relate, in connection with benefits provided under the Young Women’s Christian
Association Pension Plan, to periods prior to June 29, 2005, during which
violations of such rules are alleged to have occurred in civil actions
commenced on or after April 25, 2007.</text>
</subsection><subsection id="H90AECA4E23194D048549C4F0F7941500"><enum>(b)</enum><header>Clarification of
age discrimination rules</header><text>In the case of any civil action
which—</text>
<paragraph id="H37B8D6A24D444191A490A5BADEFD1674"><enum>(1)</enum><text>is commenced on or
after April 25, 2007, and</text>
</paragraph><paragraph id="H9EE0C34420CB44AF94EF686BEE1C6FBE"><enum>(2)</enum><text>alleges a
violation of section 204(b)(1)(H) of the Employee Retirement Income Security
Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1054">29 U.S.C. 1054(b)(1)(H)</external-xref>) or section 4(i)(1) of the Age
Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/623">29 U.S.C. 623(i)(1)</external-xref>) occurring before
June 29, 2005, with respect to any benefit provided under the Young Women’s
Christian Association Pension Plan,</text>
</paragraph><continuation-text continuation-text-level="subsection">such
sections 204(b)(1)(H) and 4(i)(1) shall be applied as if paragraph (5) of
section 204(b) of the Employee Retirement Income Security Act of 1974 (as added
by section 701(a)(1) of the Pension Protection Act of 2006 (29 U.S.C.
1054(b)(5); 120 Stat. 981) and paragraph (10) of section 4(i) of the Age
Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/623">29 U.S.C. 623(i)(10)</external-xref>; 120 Stat. 998)
applied to any period in which such alleged violation occurred.</continuation-text></subsection><subsection id="H038B93C4CFE547BD86F332AA9605F221"><enum>(c)</enum><header>Young Women’s
Christian Association Pension Plan</header><text>For purposes of this section,
the term <quote>Young Women’s Christian Association Pension Plan</quote> means
the defined benefit plan (as defined in section 3(35) of the Employee
Retirement Income Security Act of 1974) established on January 1, 1926, and
maintained by the Young Women’s Christian Association Retirement Fund, a
corporation created by an Act of the State of New York which became law on
April 12, 1924.</text>
</subsection></section><section display-inline="no-display-inline" id="H8C877B4B13AD4BA48664FD62D9B200C1" section-type="subsequent-section"><enum>304.</enum><header>Prohibited
transactions exemption for divestment of employer securities</header>
<subsection id="H4F23C1BB0ABD4948A3663643D7CD87B3"><enum>(a)</enum><header>Amendment to the
Employee Retirement Income Security Act of 1974</header><text display-inline="yes-display-inline">Section 408(b) of the Employee Retirement
Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1108">29 U.S.C. 1108(b)</external-xref>) is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H400B9473351F4C94BAD1D500BCD55DDD" style="traditional">
<paragraph id="H595E9A99F7C34102B6D0D37FE0F26333" indent="up1"><enum>(21)</enum><header>Prohibited transactions exemption
for divestment of employer securities</header><text>A transaction involving the
sale of employer securities held in the account of a plan participant under the
plan, if—</text>
<subparagraph id="HAB90248C7BE241FEA2DCB9830000D222"><enum>(A)</enum><text>the proceeds from the sale are
invested in the account,</text>
</subparagraph><subparagraph id="HE713ECF0FD8343BEA69F22AC6F46F596"><enum>(B)</enum><text>the notice requirements of section
404(c)(5)(B) are met in connection with the plan with respect to the plan year
during which the transaction occurs,</text>
</subparagraph><subparagraph id="H53C1609370E64F658CCE56379464CAF6"><enum>(C)</enum><text>under the plan—</text>
<clause id="HD2E0B953EA2841DFB415DEF8FD47C7B0"><enum>(i)</enum><text>the participant is treated as
having elected to effect the transaction, in the absence of a specific election
by the participant not to have the transaction effected, and</text>
</clause><clause id="H1328FBDDE4A340FEA800DA0073C545C3"><enum>(ii)</enum><text>participants are provided a
reasonable period of time after the notice provided pursuant to section
404(c)(5)(B) with respect to each plan year and before the beginning of such
plan year to make such a specific election, and</text>
</clause></subparagraph><subparagraph id="HF3CE5D65AC2B4F9483FAC6300A9227"><enum>(D)</enum><text>the transaction is consistent with
regulations which shall be promulgated by the Secretary and which shall take
into account the importance of diversifying the investment of retirement
account assets as a plan participant nears retirement
age.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HABBF1CA4ED55451CA6BC4D249896B800"><enum>(b)</enum><header>Conforming
amendments to the Internal Revenue Code of 1986</header><text>Subsection (d) of
<external-xref legal-doc="usc" parsable-cite="usc/26/4975">section 4975</external-xref> of the Internal Revenue Code of 1986 (relating to exemptions) is
amended by striking <quote>or</quote> at the end of paragraph (22), by striking
the period at the end of paragraph (23) and inserting <quote>, or</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H28337E1BB4114B41B9AE8216CADBD25" style="OLC">
<paragraph id="HE6313B9BAD2142BE8507B4CA5178CB97"><enum>(24)</enum><header>Prohibited
transactions exemption for divestment of employer securities</header><text>A
transaction involving the sale of employer securities held in the account of a
plan participant under the plan, if—</text>
<subparagraph id="H5696C8AC9346423691667C2C6BAFB745"><enum>(A)</enum><text>the proceeds from
the sale are invested in the account,</text>
</subparagraph><subparagraph id="H14F1069DCD374B1CA810CBAA1FA80700"><enum>(B)</enum><text>the notice
requirements of section 404(c)(5)(B) of the Employee Retirement Income Security
Act of 1974 are met in connection with the plan with respect to the plan year
during which the transaction occurs,</text>
</subparagraph><subparagraph id="HAC4541C690D84461A5C8E467B51C65DB"><enum>(C)</enum><text>under the
plan—</text>
<clause id="H5066B3049E6A42DA8BDDDA77FC3F6E6E"><enum>(i)</enum><text>the participant is
treated as having elected to effect the transaction, in the absence of a
specific election by the participant not to have the transaction effected,
and</text>
</clause><clause id="HA58208B71F604480879125E4880065FB"><enum>(ii)</enum><text display-inline="yes-display-inline">participants are provided a reasonable
period of time after the notice provided pursuant to section 404(c)(5)(B) of
the Employee Retirement Income Security Act of 1974 with respect to each plan
year and before the beginning of such plan year to make such a specific
election, and</text>
</clause></subparagraph><subparagraph id="H369B41BBCC574B1DAE7EC56DA4B69B09"><enum>(D)</enum><text display-inline="yes-display-inline">the transaction is consistent with
regulations promulgated by the Secretary of Labor pursuant to section
408(b)(21)(D) of the Employee Retirement Income Security Act of
1974.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H68AB580069B54B24AD72BCB65EE399DB"><enum>(c)</enum><header>Issuance of
regulations</header><text display-inline="yes-display-inline">The Secretary of
Labor shall issue initial final regulations pursuant to section 408(b)(21)(D)
of the Employee Retirement Income Security Act of 1974 (as added by this
section) not later than 180 days after the date of the enactment of this
Act.</text>
</subsection><subsection id="HDB9CCFB20F21479EA0DB822FACD0072"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
transactions occurring after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H97B625A4792E4A66A593BADCAB002820" section-type="subsequent-section"><enum>305.</enum><header>Special rule
relating to at-risk status for employees offered early retirement in 2006 or
2007</header>
<subsection id="HC77437C1844C4431003514AE72567506"><enum>(a)</enum><header>Amendments to
ERISA</header><text display-inline="yes-display-inline">Section 303(i)(4)(C) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1083(i)(4)(C)(i)) is amended—</text>
<paragraph id="HA847B61F17CE4C87AC0040009507DD2E"><enum>(1)</enum><text>in the heading, by
inserting <quote><header-in-text level="subparagraph" style="OLC">or
2007</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">2006</header-in-text></quote>;</text>
</paragraph><paragraph id="H67E1C1807AE54E2698AD74D794E04D73"><enum>(2)</enum><text>in clause (i)(II),
by striking <quote>2010</quote> and inserting <quote>2011</quote>; and</text>
</paragraph><paragraph id="H14223A73DAC2481493E84A5CF3F8BAB"><enum>(3)</enum><text>in
clause (i)(III), by inserting <quote>or 2007</quote> after <quote>2006</quote>
the first place it appears, and by striking <quote>2006</quote> the second
place it appears and inserting <quote>2007</quote>.</text>
</paragraph></subsection><subsection id="H8B7FF1B326F048618CD157A0573B39B8"><enum>(b)</enum><header>Conforming
amendments to the Internal Revenue Code of 1986</header><text>Section
430(i)(4)(C) of the Internal Revenue Code of 1986 (relating to special rule for
employees offered early retirement in 2006) is amended—</text>
<paragraph id="H8C7AB862E96F4CCAB48D912F406257BE"><enum>(1)</enum><text>in the heading, by
inserting <quote><header-in-text level="subparagraph" style="OLC">or
2007</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">2006</header-in-text></quote>;</text>
</paragraph><paragraph id="HA8B454EFB2ED460EB24237AC3500684F"><enum>(2)</enum><text>in clause (i)(II),
by striking <quote>2010</quote> and inserting <quote>2011</quote>; and</text>
</paragraph><paragraph id="H4194FBF8D4644C618D98DBF4B4B1E22B"><enum>(3)</enum><text>in clause
(ii)(III), by inserting <quote>or 2007</quote> after <quote>2006</quote> the
first place it appears, and by striking <quote>2006</quote> the second place it
appears and inserting <quote>2007</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H55152216A9B347FB99E0A819DF630628"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="HA874CF8A887F4650AFAF953B5F51D2F2" section-type="subsequent-section"><enum>306.</enum><header>Phase-in of funding
target</header>
<subsection id="H1A318D744455447DBE006E64C3AA69F8"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Subparagraph (B) of section 303(c)(5) of the Employee
Retirement Income Security Act of 1974 (as amended by this Act) is further
amended—</text>
<paragraph id="HF7D4859D21DC49419E042FEB00722D66"><enum>(1)</enum><text>by striking clause
(iii) and redesignating clause (iv) as clause (iii); and</text>
</paragraph><paragraph id="HF4528D5F8B5340170004369C319FA8FA"><enum>(2)</enum><text>by striking clause
(i) and inserting the following:</text>
<quoted-block id="HB7E2C9D415D845E489698CB5F9E67415" style="OLC">
<clause id="H6332B4974DBD40F8A4EF01D34CA9A883"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
clause (iii), in the case of plan years beginning after the applicable funding
pre-effective date year (as defined in section 21(i)(1) of the
<short-title>Pension Protection Act Amendments of
2008</short-title>) and before the calendar year that is three years after the
applicable funding effective date year (as defined in section 21(i)(2) of the
Pension Protection Act Amendments of 2007), 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).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5E4A24B0C11949DF9083FEEBD1E410F7"><enum>(b)</enum><header>Conforming
amendment to Internal Revenue Code</header><text>Subparagraph (B) of section
430(c)(5) of the Internal Revenue Code of 1986 (as amended by this Act) is
further amended—</text>
<paragraph id="HA4F15FAC53D54E149CDA6E20B002151"><enum>(1)</enum><text>by
striking clause (iii) and redesignating clause (iv) as clause (iii); and</text>
</paragraph><paragraph id="HF6E8D0271D784F44AECFD298E8B8C4F8"><enum>(2)</enum><text>by striking clause
(i) and inserting the following:</text>
<quoted-block id="HA7B2FE928CA54193B600CECC85B63F11" style="OLC">
<clause id="H088F2462DE8140CEA3BF1F122146257E"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
clause (iii), in the case of plan years beginning after the applicable funding
pre-effective date year (as defined in section 21(i)(1) of the
<short-title>Pension Protection Act Amendments of
2008</short-title>) and before the calendar year that is three years after the
applicable funding effective date year (as defined in section 21(i)(2) of the
Pension Protection Act Amendments of 2007), 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).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H8CCE7468348B46A2B751D7133ECEC36D"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><enum>IV</enum><header>Small Employer
Modifications</header>
<section display-inline="no-display-inline" id="HBEDC3A47F8DC484997B8FD326B19A8E5" section-type="subsequent-section"><enum>401.</enum><header>Treatment of
employees of certain cooperatives as affiliated service group
employees</header>
<subsection id="HB918CE709EB343438D6218C306D99B2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 210 of the
Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1060">29 U.S.C. 1060</external-xref>) is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H5ACBAFAFD762432D93898049F95C3950" style="OLC">
<subsection id="H3BA68073F213447C82DB80BD42F4633C"><enum>(f)</enum><header>Treatment of
employees of certain cooperatives as affiliated service group
employees</header>
<paragraph id="HB3D34325AD8E494CA3320653096E4C31"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
sections 202, 203, and 204—</text>
<subparagraph id="HD115F10C433E41108C2349E1D6C43F00"><enum>(A)</enum><text>all employees of
all shareholders of a corporation which is an affiliated service group shall be
treated as employed by such corporation as a single employer, and</text>
</subparagraph><subparagraph id="H883EDEA8B7C9411593C16E27A5FC29DE"><enum>(B)</enum><text>a plan maintained
by a corporation which is an affiliated service group shall be treated as a
single-employer plan maintained by the corporation.</text>
</subparagraph></paragraph><paragraph id="H8A05B9A0531E4FB78B36C482B1AC009F"><enum>(2)</enum><header>Affiliated
service group</header><text>For purposes of this subsection, the term
<quote>affiliated service group</quote> means a corporation if—</text>
<subparagraph id="H5BD5F0E9A7E04E0080F4B98458BEA5C"><enum>(A)</enum><text>the corporation has
at least 21 shareholders and operates on a cooperative basis subject to the
provisions of subchapter T of chapter 1 of the Internal Revenue Code of
1986,</text>
</subparagraph><subparagraph id="HA66A9E93DAD343838773A8A3A78E749E"><enum>(B)</enum><text>all shareholders
of the corporation engage in business operations using the same four-digit
North American Industrial Classification System (NAIC) code root, and</text>
</subparagraph><subparagraph id="H21DB4141E75B4774903CF3D71932D2FA"><enum>(C)</enum><text>the corporation
assumes responsibility pursuant to a written agreement with each shareholder,
with respect to all worksite employees providing services to such shareholder,
for the provision of employee
benefits.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H48A02BB4DB1B4315BC345D9FBD6EED98"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to plan years beginning on or after the date of the
enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Prohibited
Transactions Modifications</header>
<section id="H1BED2C4F604F4710A7FD45D1196B2BFF"><enum>501.</enum><header>Clarification
of parties in interest affected by prohibited transaction exemption for block
trading</header>
<subsection id="H22A5077EA97248ECB0C014D5B87D1F6"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Section 408(b)(15)(A) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1108">29 U.S.C. 1108(b)(15)(A)</external-xref>) is amended—</text>
<paragraph id="HBCB1EE53ED4B49A390EBC4C8BEB26B00"><enum>(1)</enum><text>by striking
<quote>a party in interest (other than a fiduciary described in section
3(21)(A)) with respect to a plan</quote> and inserting <quote>a party in
interest (other than a fiduciary described in section 3(21)(A) who has
investment discretion or provides investment advice with respect to the
transaction)</quote>; and</text>
</paragraph><paragraph id="H916B6B5E8AC34BFBA650F42481F01698"><enum>(2)</enum><text>in clause (i), by
inserting <quote>directed by a fiduciary described in section 3(21)(A)</quote>
after <quote>block trade</quote>.</text>
</paragraph></subsection><subsection id="H7FBE0B10064F49E3B7DAAA0013F503D0"><enum>(b)</enum><header>Conforming
amendment to the Code</header><text>Paragraph (18) of section 4975(d) of the
Internal Revenue Code of 1986 (relating to exemptions from prohibited
transactions) is amended—</text>
<paragraph id="HC20D5A1ADB9A4BC500001C4D7C99DA4F"><enum>(1)</enum><text>by striking
<quote>a party in interest (other than a fiduciary described in subsection
(e)(3)(B))</quote> and inserting <quote>a disqualified person (other than a
fiduciary who has investment discretion or provides investment advice with
respect to the transaction)</quote>; and</text>
</paragraph><paragraph id="HDCD6B92AA27242DA007C8C47EA4C826B"><enum>(2)</enum><text>in subparagraph
(A), by inserting <quote>directed by a fiduciary described in subsection
(e)(3)(B)</quote> after <quote>block trade</quote>.</text>
</paragraph></subsection><subsection id="H90C6F6D1AD864AD28563A56D31F1F0D7"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply as if
included in the enactment of section 601 of the Pension Protection Act of
2006.</text>
</subsection></section><section display-inline="no-display-inline" id="HEEE17942179748478E007B117FB0047" section-type="subsequent-section"><enum>502.</enum><header>Clarification of
scope of prohibited transaction exemption for electronic communication
networks</header>
<subsection id="HA0CE51E69FC741FEA640DDFD258098D3"><enum>(a)</enum><header>Amendments to
ERISA</header><text>Section 408(b)(16) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1108">29 U.S.C. 1108(b)</external-xref>) is amended—</text>
<paragraph id="HB35445D3B65C4A3BBE58CBB5AA3FA3DA"><enum>(1)</enum><text>in subparagraph
(A), by inserting <quote>exchange, automated quotation system,</quote> after
<quote>electronic communication network,</quote>;</text>
</paragraph><paragraph id="H603B23390F1640DC8B9EDD5E9EAC500"><enum>(2)</enum><text>in
subparagraph (D), by striking <quote>if the party in interest has an ownership
interest</quote> and inserting <quote>if the fiduciary directing the
transaction has an ownership interest of at least 10 percent by value</quote>;
and</text>
</paragraph><paragraph id="HAFAC1706AE3749DD864BA2C08053E4B0"><enum>(3)</enum><text>in subparagraph
(E), by inserting after <quote>(E)</quote> the following: <quote>if the
fiduciary directing the transaction has an ownership interest of at least 10
percent by value in the system or venue described in subparagraph
(A),</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFA7BACD409E1478288C63684B9A9D2A2"><enum>(b)</enum><header>Conforming
amendments to Code</header><text>Paragraph (19) of section 4975(d) of the
Internal Revenue Code of 1986 (relating to exemptions from prohibited
transactions) is amended—</text>
<paragraph commented="no" id="H85F2E11333BA456498E2835013E8D5B"><enum>(1)</enum><text>in subparagraph
(A), by inserting <quote>exchange, automated quotation system,</quote> after
<quote>electronic communication network,</quote>;</text>
</paragraph><paragraph commented="no" id="H23A9AE80ECD24026A1D955CEEDC32895"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking <quote>if
the party in interest has an ownership interest</quote> and inserting <quote>if
the fiduciary directing the transaction has an ownership interest of at least
10 percent by value</quote>; and</text>
</paragraph><paragraph commented="no" id="H80944B7A1F564447B5EE7FC9CA09C5DF"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (E), by inserting after
<quote>(E)</quote> the following: <quote>if the fiduciary directing the
transaction has an ownership interest of at least 10 percent by value in the
system or venue described in subparagraph (A),</quote>.</text>
</paragraph></subsection><subsection id="HEC3DBD4BA18A49A2A7D537B353616CA8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply as if
included in the enactment of section 611 of the Pension Protection Act of
2006.</text>
</subsection></section><section display-inline="no-display-inline" id="HA251A9816A194F6E92DF25722D1D36CB" section-type="subsequent-section"><enum>503.</enum><header>Increase in maximum
bond amount for plans holding employer securities</header>
<subsection id="HF96B875A966547E8AB83F07167DB7886"><enum>(a)</enum><header>In
general</header><text>Section 412(a) of the Employee Retirement Income Security
Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1112">29 U.S.C. 1112(a)</external-xref>) is amended by striking the last sentence and
inserting the following: <quote>In any case in which a dedicated portfolio of
plan assets is primarily invested in employer securities (within the meaning of
section 407(d)(1)), if such employer securities have been contributed directly
by the plan sponsor (or an affiliate (within the meaning of section
408(g)(11)(B)) of the plan sponsor) or the decision to purchase such employer
securities has been made by an employee of the plan sponsor (or of such an
affiliate of the plan sponsor), this subsection shall be applied in requiring
each person who handles such plan assets to be bonded by substituting in this
subsection <quote>$1,000,000</quote> for <quote>$500,000</quote> each place it
appears.</quote>.</text>
</subsection><subsection id="H6FB24C5373D84E1EB157944FEA596872"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply as if
included in the enactment of section 622 of the Pension Protection Act of
2006.</text>
</subsection></section>