[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7327 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
110th CONGRESS
  2d Session
                                H. R. 7327

_______________________________________________________________________

                                 AN ACT


 
To make technical corrections related to the Pension Protection Act of 
                     2006, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Worker, Retiree, 
and Employer Recovery Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF 
                                  2006

Sec. 100. References in title.
Subtitle A--Technical Corrections Related to the Pension Protection Act 
                                of 2006

Sec. 101. Amendments related to Title I.
Sec. 102. Amendments related to title II.
Sec. 103. Amendments related to title III.
Sec. 104. Amendments related to title IV.
Sec. 105. Amendments related to title V.
Sec. 106. Amendments related to title VI.
Sec. 107. Amendments related to title VII.
Sec. 108. Amendments related to title VIII.
Sec. 109. Amendments related to title IX.
Sec. 110. Amendments related to title X.
Sec. 111. Amendments related to title XI.
Sec. 112. Effective date.
                      Subtitle B--Other Provisions

Sec. 121. Amendments Related to Sections 102 and 112 of the Pension 
                            Protection Act of 2006.
Sec. 122. Modification of interest rate assumption required with 
                            respect to certain small employer plans.
Sec. 123. Determination of market rate of return for governmental 
                            plans.
Sec. 124. Treatment of certain reimbursements from governmental plans 
                            for medical care.
Sec. 125. Rollover of amounts received in airline carrier bankruptcy to 
                            Roth IRAs.
Sec. 126. Determination of asset value for special airline funding 
                            rules.
Sec. 127. Modification of penalty for failure to file partnership 
                            returns.
Sec. 128. Modification of penalty for failure to file S corporation 
                            returns.
        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

Sec. 201. Temporary waiver of required minimum distribution rules for 
                            certain retirement plans and accounts.
Sec. 202. Transition rule clarification.
Sec. 203. Temporary modification of application of limitation on 
                            benefit accruals.
Sec. 204. Temporary delay of designation of multiemployer plans as in 
                            endangered or critical status.
Sec. 205. Temporary extension of the funding improvement and 
                            rehabilitation periods for multiemployer 
                            pension plans in critical and endangered 
                            status for 2008 or 2009.

TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF 
                                  2006

SEC. 100. REFERENCES IN TITLE.

    For purposes of this title:
            (1) Amendment of 1986 code.--The term ``1986 Code'' means 
        the Internal Revenue Code of 1986.
            (2) Amendment of erisa.--The term ``ERISA'' means the 
        Employee Retirement Income Security Act of 1974.
            (3) 2006 act.--The term ``2006 Act'' means the Pension 
        Protection Act of 2006.

Subtitle A--Technical Corrections Related to the Pension Protection Act 
                                of 2006

SEC. 101. AMENDMENTS RELATED TO TITLE I.

    (a) Amendments Related to Sections 101 and 111.--
            (1) Amendments to erisa.--
                    (A) Clause (i) of section 302(c)(1)(A) of ERISA is 
                amended by striking ``the plan is'' and inserting ``the 
                plan are''.
                    (B) Section 302(c)(7) of ERISA is amended by 
                inserting ``which reduces the accrued benefit of any 
                participant'' after ``subsection (d)(2)'' in 
                subparagraph (A).
                    (C) Section 302(d)(1) of ERISA is amended by 
                striking ``, the valuation date,''.
            (2) Amendments to 1986 code.--
                    (A) Clause (i) of section 412(c)(1)(A) of the 1986 
                Code is amended by striking ``the plan is'' and 
                inserting ``the plan are''.
                    (B) Section 412(c)(7) of the 1986 Code is amended 
                by inserting ``which reduces the accrued benefit of any 
                participant'' after ``subsection (d)(2)'' in 
                subparagraph (A).
                    (C) Section 412(d)(1) of the 1986 Code is amended 
                by striking ``, the valuation date,''.
    (b) Amendments Related to Sections 102 and 112.--
            (1) Amendments to erisa.--
                    (A) Section 303(b) of ERISA is amended to read as 
                follows:
    ``(b) Target Normal Cost.--For purposes of this section:
            ``(1) In general.--Except as provided in subsection (i)(2) 
        with respect to plans in at-risk status, the term `target 
        normal cost' means, for any plan year, the excess of--
                    ``(A) the sum of--
                            ``(i) the present value of all benefits 
                        which are expected to accrue or to be earned 
                        under the plan during the plan year, plus
                            ``(ii) the amount of plan-related expenses 
                        expected to be paid from plan assets during the 
                        plan year, over
                    ``(B) the amount of mandatory employee 
                contributions expected to be made during the plan year.
            ``(2) Special rule for increase in compensation.--For 
        purposes of this subsection, if any benefit attributable to 
        services performed in a preceding plan year is increased by 
        reason of any increase in compensation during the current plan 
        year, the increase in such benefit shall be treated as having 
        accrued during the current plan year.''.
                    (B) Section 303(c)(5)(B)(iii) of ERISA is amended 
                by inserting ``beginning'' before ``after 2008''.
                    (C) Section 303(c)(5)(B)(iv)(II) of ERISA is 
                amended by inserting ``for such year'' after 
                ``beginning in 2007)''.
                    (D) Section 303(f)(4)(A) of ERISA is amended by 
                striking ``paragraph (2)'' and inserting ``paragraph 
                (3)''.
                    (E) Section 303(h)(2)(F) of ERISA is amended--
                            (i) by striking ``section 
                        205(g)(3)(B)(iii)(I)) for such month'' and 
                        inserting ``section 205(g)(3)(B)(iii)(I) for 
                        such month)'', and
                            (ii) by striking ``subparagraph (B)'' and 
                        inserting ``subparagraph (C)''.
                    (F) Section 303(i) of ERISA is amended--
                            (i) in paragraph (2)--
                                    (I) by striking subparagraph (A) 
                                and inserting the following new 
                                subparagraph:
                    ``(A) the excess of--
                            ``(i) the sum of--
                                    ``(I) the present value of all 
                                benefits which are expected to accrue 
                                or to be earned under the plan during 
                                the plan year, determined using the 
                                additional actuarial assumptions 
                                described in paragraph (1)(B), plus
                                    ``(II) the amount of plan-related 
                                expenses expected to be paid from plan 
                                assets during the plan year, over
                            ``(ii) the amount of mandatory employee 
                        contributions expected to be made during the 
                        plan year, plus'', and
                                    (II) in subparagraph (B), by 
                                striking ``the target normal cost 
                                (determined without regard to this 
                                paragraph) of the plan for the plan 
                                year'' and inserting ``the amount 
                                determined under subsection 
                                (b)(1)(A)(i) with respect to the plan 
                                for the plan year'', and
                            (ii) by striking ``subparagraph (A)(ii)'' 
                        in the last sentence of paragraph (4)(B) and 
                        inserting ``subparagraph (A)''.
                    (G) Section 303(j)(3) of ERISA--
                            (i) is amended by adding at the end of 
                        subparagraph (A) the following new sentence: 
                        ``In the case of plan years beginning in 2008, 
                        the funding shortfall for the preceding plan 
                        year may be determined using such methods of 
                        estimation as the Secretary of the Treasury may 
                        provide.'',
                            (ii) by adding at the end of subparagraph 
                        (E) the following new clause:
                            ``(iii) Plan with alternate valuation 
                        date.--The Secretary of the Treasury shall 
                        prescribe regulations for the application of 
                        this paragraph in the case of a plan which has 
                        a valuation date other than the first day of 
                        the plan year.'', and
                            (iii) by striking ``and short years'' in 
                        the heading of subparagraph (E) and inserting 
                        ``, short years, and years with alternate 
                        valuation date''.
                    (H) Section 303(k)(6)(B) of ERISA is amended by 
                striking ``, except'' and all that follows and 
                inserting a period.
            (2) Amendments to 1986 code.--
                    (A) Section 430(b) of the 1986 Code is amended to 
                read as follows:
    ``(b) Target Normal Cost.--For purposes of this section:
            ``(1) In general.--Except as provided in subsection (i)(2) 
        with respect to plans in at-risk status, the term `target 
        normal cost' means, for any plan year, the excess of--
                    ``(A) the sum of--
                            ``(i) the present value of all benefits 
                        which are expected to accrue or to be earned 
                        under the plan during the plan year, plus
                            ``(ii) the amount of plan-related expenses 
                        expected to be paid from plan assets during the 
                        plan year, over
                    ``(B) the amount of mandatory employee 
                contributions expected to be made during the plan year.
            ``(2) Special rule for increase in compensation.--For 
        purposes of this subsection, if any benefit attributable to 
        services performed in a preceding plan year is increased by 
        reason of any increase in compensation during the current plan 
        year, the increase in such benefit shall be treated as having 
        accrued during the current plan year.''.
                    (B) Section 430(c)(5)(B)(iii) of the 1986 Code is 
                amended by inserting ``beginning'' before ``after 
                2008''.
                    (C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code 
                is amended by inserting ``for such year'' after 
                ``beginning in 2007)''.
                    (D) Section 430(f) of the 1986 Code is amended--
                            (i) by striking ``as of the first day of 
                        the plan year'' the second place it appears in 
                        the first sentence of paragraph (3)(A),
                            (ii) by striking ``paragraph (2)'' in 
                        paragraph (4)(A) and inserting ``paragraph 
                        (3)'',
                            (iii) by striking ``paragraph (1), (2), or 
                        (4) of section 206(g)'' in paragraph 
                        (6)(B)(iii) and inserting ``subsection (b), 
                        (c), or (e) of section 436'',
                            (iv) by striking ``the sum of'' in 
                        paragraph (6)(C), and
                            (v) by striking ``of the Treasury'' in 
                        paragraph (8).
                    (E) Section 430(h)(2) of the 1986 Code is amended--
                            (i) by inserting ``and target normal cost'' 
                        after ``funding target'' in subparagraph (B),
                            (ii) by striking ``liabilities'' and 
                        inserting ``benefits'' in subparagraph (B),
                            (iii) by striking ``section 
                        417(e)(3)(D)(i)) for such month'' in 
                        subparagraph (F) and inserting ``section 
                        417(e)(3)(D)(i) for such month)'', and
                            (iv) by striking ``subparagraph (B)'' in 
                        subparagraph (F) and inserting ``subparagraph 
                        (C)''.
                    (F) Section 430(i) of the 1986 Code is amended--
                            (i) in paragraph (2)--
                                    (I) by striking subparagraph (A) 
                                and inserting the following new 
                                subparagraph:
                    ``(A) the excess of--
                            ``(i) the sum of--
                                    ``(I) the present value of all 
                                benefits which are expected to accrue 
                                or to be earned under the plan during 
                                the plan year, determined using the 
                                additional actuarial assumptions 
                                described in paragraph (1)(B), plus
                                    ``(II) the amount of plan-related 
                                expenses expected to be paid from plan 
                                assets during the plan year, over
                            ``(ii) the amount of mandatory employee 
                        contributions expected to be made during the 
                        plan year, plus'', and
                                    (II) in subparagraph (B), by 
                                striking ``the target normal cost 
                                (determined without regard to this 
                                paragraph) of the plan for the plan 
                                year'' and inserting ``the amount 
                                determined under subsection 
                                (b)(1)(A)(i) with respect to the plan 
                                for the plan year'', and
                            (ii) by striking ``subparagraph (A)(ii)'' 
                        in the last sentence of paragraph (4)(B) and 
                        inserting ``subparagraph (A)''.
                    (G) Section 430(j)(3) of the 1986 Code is amended--
                            (i) by adding at the end of subparagraph 
                        (A) the following new sentence: ``In the case 
                        of plan years beginning in 2008, the funding 
                        shortfall for the preceding plan year may be 
                        determined using such methods of estimation as 
                        the Secretary may provide.'',
                            (ii) by striking ``section 302(c)'' in 
                        subparagraph (D)(ii)(II) and inserting 
                        ``section 412(c)'',
                            (iii) by adding at the end of subparagraph 
                        (E) the following new clause:
                            ``(iii) Plan with alternate valuation 
                        date.--The Secretary shall prescribe 
                        regulations for the application of this 
                        paragraph in the case of a plan which has a 
                        valuation date other than the first day of the 
                        plan year.'', and
                            (iv) by striking ``and short years'' in the 
                        heading of subparagraph (E) and inserting ``, 
                        short years, and years with alternate valuation 
                        date''.
                    (H) Section 430(k) of the 1986 Code is amended--
                            (i) by inserting ``(as provided under 
                        paragraph (2))'' after ``applies'' in paragraph 
                        (1), and
                            (ii) by striking ``, except'' and all that 
                        follows in paragraph (6)(B) and inserting a 
                        period.
            (3) Effective dates.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by paragraphs (1)(A), 
                (1)(F)(i), (2)(A), and (2)(F)(i) shall apply to plan 
                years beginning after December 31, 2008.
                    (B) Election for earlier application.--The 
                amendments made by such paragraphs shall apply to a 
                plan for the first plan year beginning after December 
                31, 2007, if the plan sponsor makes the election under 
                this subparagraph. An election under this subparagraph 
                shall be made at such time and in such manner as the 
                Secretary of the Treasury or the Secretary's delegate 
                may prescribe, and, once made, may be revoked only with 
                the consent of the Secretary.
    (c) Amendments Related to Sections 103 and 113.--
            (1) Amendments to erisa.--
                    (A) Section 101(j) of ERISA is amended--
                            (i) in paragraph (2), by striking ``section 
                        206(g)(4)(B)'' and inserting ``section 
                        206(g)(4)(A)''; and
                            (ii) by adding at the end the following: 
                        ``The Secretary of the Treasury, in 
                        consultation with the Secretary, shall have the 
                        authority to prescribe rules applicable to the 
                        notices required under this subsection.''.
                    (B) Section 206(g)(1)(B)(ii) of ERISA is amended by 
                striking ``a funding'' and inserting ``an adjusted 
                funding''.
                    (C) The heading for section 206(g)(1)(C) of ERISA 
                is amended by inserting ``benefit'' after ``event''.
                    (D) Section 206(g)(3)(E) of ERISA is amended by 
                adding at the end the following new flush sentence:
                ``Such term shall not include the payment of a benefit 
                which under section 203(e) may be immediately 
                distributed without the consent of the participant.''.
                    (E) Section 206(g)(5)(A)(iv) of ERISA is amended by 
                inserting ``adjusted'' before ``funding''.
                    (F) Section 206(g)(9)(C) of ERISA is amended--
                            (i) by striking ``without regard to this 
                        subparagraph and'' in clause (i), and
                            (ii) in clause (iii)--
                                    (I) by striking ``without regard to 
                                this subparagraph'' and inserting 
                                ``without regard to the reduction in 
                                the value of assets under section 
                                303(f)(4)'', and
                                    (II) by inserting ``beginning'' 
                                before ``after'' each place it appears.
                    (G) Section 206(g) of ERISA is amended by 
                redesignating paragraph (10) as paragraph (11) and by 
                inserting after paragraph (9) the following new 
                paragraph:
            ``(10) Secretarial authority for plans with alternate 
        valuation date.--In the case of a plan which has designated a 
        valuation date other than the first day of the plan year, the 
        Secretary of the Treasury may prescribe rules for the 
        application of this subsection which are necessary to reflect 
        the alternate valuation date.''.
                    (H) Section 502(c)(4) of ERISA is amended by 
                striking ``by any person'' and all that follows through 
                the period and inserting ``by any person of subsection 
                (j), (k), or (l) of section 101 or section 
                514(e)(3).''.
            (2) Amendments to 1986 code.--
                    (A) Section 436(b)(2) of the 1986 Code is amended--
                            (i) by striking ``section 303'' and 
                        inserting ``section 430'' in the matter 
                        preceding subparagraph (A), and
                            (ii) by striking ``a funding'' and 
                        inserting ``an adjusted funding'' in 
                        subparagraph (B).
                    (B) Section 436(b)(3) of the 1986 Code is amended--
                            (i) by inserting ``benefit'' after 
                        ``event'' in the heading, and
                            (ii) by striking ``any event'' in 
                        subparagraph (B) and inserting ``an event''.
                    (C) Section 436(d)(5) of the 1986 Code is amended 
                by adding at the end the following new flush sentence:
        ``Such term shall not include the payment of a benefit which 
        under section 411(a)(11) may be immediately distributed without 
        the consent of the participant.''.
                    (D) Section 436(f) of the 1986 Code is amended--
                            (i) by inserting ``adjusted'' before 
                        ``funding'' in paragraph (1)(D), and
                            (ii) by striking ``prefunding balance under 
                        section 430(f) or funding standard carryover 
                        balance'' in paragraph (2) and inserting 
                        ``prefunding balance or funding standard 
                        carryover balance under section 430(f)''.
                    (E) Section 436(j)(3) of the 1986 Code is amended--
                            (i) in subparagraph (A)--
                                    (I) by striking ``without regard to 
                                this paragraph and'',
                                    (II) by striking ``section 
                                430(f)(4)(A)'' and inserting ``section 
                                430(f)(4)'', and
                                    (III) by striking ``paragraph (1)'' 
                                and inserting ``paragraphs (1) and 
                                (2)'', and
                            (ii) in subparagraph (C)--
                                    (I) by striking ``without regard to 
                                this paragraph'' and inserting 
                                ``without regard to the reduction in 
                                the value of assets under section 
                                430(f)(4)'', and
                                    (II) by inserting ``beginning'' 
                                before ``after'' each place it appears.
                    (F) Section 436 of the 1986 Code is amended by 
                redesignating subsection (k) as subsection (m) and by 
                inserting after subsection (j) the following new 
                subsections:
    ``(k) Secretarial Authority for Plans With Alternate Valuation 
Date.--In the case of a plan which has designated a valuation date 
other than the first day of the plan year, the Secretary may prescribe 
rules for the application of this section which are necessary to 
reflect the alternate valuation date.
    ``(l) Single-Employer Plan.--For purposes of this section, the term 
`single-employer plan' means a plan which is not a multiemployer 
plan.''.
            (3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and 
        113(b)(2)(A)(ii) of the 2006 Act are each amended--
                    (A) by striking ``subsection'' and inserting 
                ``section'', and
                    (B) by striking ``subparagraph'' and inserting 
                ``paragraph''.
    (d) Amendments Related to Sections 107 and 114.--
            (1) Amendments to erisa.--
                    (A) Section 103(d) of ERISA is amended--
                            (i) in paragraph (3), by striking ``the 
                        normal costs, the accrued liabilities'' and 
                        inserting ``the normal costs or target normal 
                        costs, the accrued liabilities or funding 
                        target'', and
                            (ii) by striking paragraph (7) and 
                        inserting the following new paragraph:
            ``(7) A certification of the contribution necessary to 
        reduce the minimum required contribution determined under 
        section 303, or the accumulated funding deficiency determined 
        under section 304, to zero.''.
                    (B) Section 4071 of ERISA is amended by striking 
                ``as section 303(k)(4) or 307(e)'' and inserting ``or 
                section 303(k)(4),''.
            (2) Amendments to 1986 code.--
                    (A) Section 401(a)(29) of the 1986 Code is amended 
                by striking ``on plans in at-risk status'' in the 
                heading.
                    (B) Section 401(a)(32)(C) of the 1986 Code is 
                amended--
                            (i) by striking ``section 430(j)'' and 
                        inserting ``section 430(j)(3)'', and
                            (ii) by striking ``paragraph (5)(A)'' and 
                        inserting ``section 430(j)(4)(A)''.
                    (C) Section 401(a)(33) of the 1986 Code is 
                amended--
                            (i) by striking ``section 412(c)(2)'' in 
                        subparagraph (B)(iii) and inserting ``section 
                        412(d)(2)'', and
                            (ii) by striking ``section 412(b)(2) 
                        (without regard to subparagraph (B) thereof)'' 
                        in subparagraph (D) and inserting ``section 
                        412(b)(1), without regard to section 
                        412(b)(2)''.
                    (D) Section 411 of the 1986 Code is amended--
                            (i) by striking ``section 412(c)(2)'' in 
                        subsection (a)(3)(C) and inserting ``section 
                        412(d)(2)'', and
                            (ii) by striking ``section 412(e)(2)'' in 
                        subsection (d)(6)(A) and inserting ``section 
                        412(d)(2)''.
                    (E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is 
                amended to read as follows:
                                    ``(I) the sum of the funding target 
                                and target normal cost determined under 
                                section 430, over''.
                    (F) Section 4971 of the 1986 Code is amended--
                            (i) by striking ``required minimum'' in 
                        subsection (b)(1) and inserting ``minimum 
                        required'',
                            (ii) by inserting ``or unpaid minimum 
                        required contribution, whichever is 
                        applicable'' after ``accumulated funding 
                        deficiency'' each place it appears in 
                        subsections (c)(3) and (d)(1), and
                            (iii) by striking ``section 412(a)(1)(A)'' 
                        in subsection (e)(1) and inserting ``section 
                        412(a)(2)''.
            (3) Amendment to 2006 act.--Section 114 of the 2006 Act is 
        amended by adding at the end the following new subsection:
    ``(g) Effective Dates.--
            ``(1) In general.--The amendments made by this section 
        shall apply to plan years beginning after 2007.
            ``(2) Excise tax.--The amendments made by subsection (e) 
        shall apply to taxable years beginning after 2007, but only 
        with respect to plan years described in paragraph (1) which end 
        with or within any such taxable year.''.
    (e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of 
the 1986 Code is amended by inserting ``to an applicable covered 
employee'' after ``under the plan''.

SEC. 102. AMENDMENTS RELATED TO TITLE II.

    (a) Amendment Related to Sections 201 and 211.--Section 
201(b)(2)(A) of the 2006 Act is amended by striking ``has not used'' 
and inserting ``has not adopted, or ceased using,''.
    (b) Amendments Related to Sections 202 and 212.--
            (1) Amendments to erisa.--
                    (A) Section 302(b)(3) of ERISA is amended by 
                striking ``the plan adopts'' and inserting ``the plan 
                sponsor adopts''.
                    (B) Section 305(b)(3)(C) of ERISA is amended by 
                striking ``section 101(b)(4)'' and inserting ``section 
                101(b)(1)''.
                    (C) Section 305(b)(3)(D) of ERISA is amended by 
                striking ``The Secretary'' in clause (iii) and 
                inserting ``The Secretary of the Treasury, in 
                consultation with the Secretary''.
                    (D) Section 305(c)(7) of ERISA is amended--
                            (i) by striking ``to agree on'' and all 
                        that follows in subparagraph (A)(ii) and 
                        inserting ``to adopt a contribution schedule 
                        with terms consistent with the funding 
                        improvement plan and a schedule from the plan 
                        sponsor,'', and
                            (ii) by striking subparagraph (B) and 
                        inserting the following new subparagraph:
                    ``(B) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) expires.'', and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(C) Failure to make scheduled contributions.--Any 
                failure to make a contribution under a schedule of 
                contribution rates provided under this paragraph shall 
                be treated as a delinquent contribution under section 
                515 and shall be enforceable as such.''.
                    (E) Section 305(e) of ERISA is amended--
                            (i) in paragraph (3)(C)--
                                    (I) by striking all that follows 
                                ``to adopt a'' in clause (i)(II) and 
                                inserting ``to adopt a contribution 
                                schedule with terms consistent with the 
                                rehabilitation plan and a schedule from 
                                the plan sponsor under paragraph 
                                (1)(B)(i),'',
                                    (II) by striking clause (ii) and 
                                inserting the following new clause:
                            ``(ii) Date of implementation.--The date 
                        specified in this clause is the date which is 
                        180 days after the date on which the collective 
                        bargaining agreement described in clause (i) 
                        expires.'', and
                                    (III) by adding at the end the 
                                following new clause:
                            ``(iii) Failure to make scheduled 
                        contributions.--Any failure to make a 
                        contribution under a schedule of contribution 
                        rates provided under this subsection shall be 
                        treated as a delinquent contribution under 
                        section 515 and shall be enforceable as 
                        such.'',
                            (ii) in paragraph (4)--
                                    (I) by striking ``the date of'' in 
                                subparagraph (A)(ii), and
                                    (II) by striking ``and taking'' in 
                                subparagraph (B) and inserting ``but 
                                taking'',
                            (iii) in paragraph (6)--
                                    (I) by striking ``paragraph 
                                (1)(B)(i)'' and inserting ``the last 
                                sentence of paragraph (1)'', and
                                    (II) by striking ``established'' 
                                and inserting ``establish'',
                            (iv) in paragraph (8)(C)(iii)--
                                    (I) by striking ``the Secretary'' 
                                in subclause (I) and inserting ``the 
                                Secretary of the Treasury, in 
                                consultation with the Secretary'', and
                                    (II) by striking ``Secretary'' in 
                                the last sentence and inserting 
                                ``Secretary of the Treasury'', and
                            (v) by striking ``an employer's withdrawal 
                        liability'' in paragraph (9)(B) and inserting 
                        ``the allocation of unfunded vested benefits to 
                        an employer''.
                    (F) Section 305(f)(2)(A)(i) of ERISA is amended by 
                adding at the end the following: ``to a participant or 
                beneficiary whose annuity starting date (as defined in 
                section 205(h)(2)) occurs after the date such notice is 
                sent,''.
                    (G) Section 305(g) of ERISA is amended by inserting 
                ``under subsection (c)'' after ``funding improvement 
                plan'' the first place it appears.
                    (H) Section 502(c)(2) of ERISA is amended by 
                striking ``101(b)(4)'' and inserting ``101(b)(1)''.
                    (I) Section 502(c)(8)(A) of ERISA is amended by 
                inserting ``plan'' after ``multiemployer''.
            (2) Amendments to 1986 code.--
                    (A) Section 432(b)(3)(C) of the 1986 Code is 
                amended by striking ``section 101(b)(4)'' and inserting 
                ``section 101(b)(1)''.
                    (B) Section 432(b)(3)(D)(iii) of the 1986 Code is 
                amended by striking ``The Secretary of Labor'' and 
                inserting ``The Secretary, in consultation with the 
                Secretary of Labor''.
                    (C) Section 432(c) of the 1986 Code is amended--
                            (i) in paragraph (3), by striking ``section 
                        304(d)'' in subparagraph (A)(ii) and inserting 
                        ``section 431(d)'', and
                            (ii) in paragraph (7)--
                                    (I) by striking ``to agree on'' and 
                                all that follows in subparagraph 
                                (A)(ii) and inserting ``to adopt a 
                                contribution schedule with terms 
                                consistent with the funding improvement 
                                plan and a schedule from the plan 
                                sponsor,'', and
                                    (II) by striking subparagraph (B) 
                                and inserting the following new 
                                subparagraph:
                    ``(B) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) expires.''.
                    (D) Section 432(e) of the 1986 Code is amended--
                            (i) in paragraph (3)(C)--
                                    (I) by striking all that follows 
                                ``to adopt a'' in clause (i)(II) and 
                                inserting ``to adopt a contribution 
                                schedule with terms consistent with the 
                                rehabilitation plan and a schedule from 
                                the plan sponsor under paragraph 
                                (1)(B)(i),'', and
                                    (II) by striking clause (ii) and 
                                inserting the following new clause:
                            ``(ii) Date of implementation.--The date 
                        specified in this clause is the date which is 
                        180 days after the date on which the collective 
                        bargaining agreement described in clause (i) 
                        expires.'',
                            (ii) in paragraph (4)--
                                    (I) by striking ``the date of'' in 
                                subparagraph (A)(ii), and
                                    (II) by striking ``and taking'' in 
                                subparagraph (B) and inserting ``but 
                                taking'',
                            (iii) in paragraph (6)--
                                    (I) by striking ``paragraph 
                                (1)(B)(i)'' and inserting ``the last 
                                sentence of paragraph (1)'', and
                                    (II) by striking ``established'' 
                                and inserting ``establish'',
                            (iv) in paragraph (8)--
                                    (I) by striking ``section 204(g)'' 
                                in subparagraph (A)(i) and inserting 
                                ``section 411(d)(6)'',
                                    (II) by inserting ``of the Employee 
                                Retirement Income Security Act of 
                                1974'' after ``4212(a)'' in 
                                subparagraph (C)(i)(II),
                                    (III) by striking ``the Secretary 
                                of Labor'' in subparagraph (C)(iii)(I) 
                                and inserting ``the Secretary, in 
                                consultation with the Secretary of 
                                Labor'', and
                                    (IV) by striking ``the Secretary of 
                                Labor'' in the last sentence of 
                                subparagraph (C)(iii) and inserting 
                                ``the Secretary'', and
                            (v) by striking ``an employer's withdrawal 
                        liability'' in paragraph (9)(B) and inserting 
                        ``the allocation of unfunded vested benefits to 
                        an employer''.
                    (E) Section 432(f)(2)(A)(i) of the 1986 Code is 
                amended--
                            (i) by striking ``section 411(b)(1)(A)'' 
                        and inserting ``section 411(a)(9)''; and
                            (ii) by inserting at the end the following: 
                        ``to a participant or beneficiary whose annuity 
                        starting date (as defined in section 417(f)(2)) 
                        occurs after the date such notice is sent,''.
                    (F) Section 432(g) of the 1986 Code is amended by 
                inserting ``under subsection (c)'' after ``funding 
                improvement plan'' the first place it appears.
                    (G) Section 432(i) of the 1986 Code is amended--
                            (i) by striking ``section 412(a)'' in 
                        paragraph (3) and inserting ``section 431(a)'', 
                        and
                            (ii) by striking paragraph (9) and 
                        inserting the following new paragraph:
            ``(9) Plan sponsor.--For purposes of this section, section 
        431, and section 4971(g):
                    ``(A) In general.--The term `plan sponsor' means, 
                with respect to any multiemployer plan, the 
                association, committee, joint board of trustees, or 
                other similar group of representatives of the parties 
                who establish or maintain the plan.
                    ``(B) Special rule for section 404(c) plans.--In 
                the case of a plan described in section 404(c) (or a 
                continuation of such plan), such term means the 
                bargaining parties described in paragraph (1).''.
                    (H) Section 412(b)(3) of the 1986 Code is amended 
                by striking ``the plan adopts'' and inserting ``the 
                plan sponsor adopts''.
                    (I) Section 4971(g)(4) of the 1986 Code is 
                amended--
                            (i) in subparagraph (B)(ii), by striking 
                        ``first day of'' and inserting ``day following 
                        the close of'', and
                            (ii) by striking clause (ii) of 
                        subparagraph (C) and inserting the following 
                        new clause:
                            ``(ii) Plan sponsor.--For purposes of 
                        clause (i), the term `plan sponsor' has the 
                        meaning given such term by section 
                        432(i)(9).''.
            (3) Amendments to 2006 act.--
                    (A) Section 212(b)(2) of the 2006 Act is amended by 
                striking ``Section 4971(c)(2) of such Code'' and 
                inserting ``Section 4971(e)(2) of such Code''.
                    (B) Section 212(e)(1) of the 2006 Act is amended by 
                inserting ``, except that the amendments made by 
                subsection (b) shall apply to taxable years beginning 
                after 2007, but only with respect to plan years 
                beginning after 2007 which end with or within any such 
                taxable year'' before the period at the end.
                    (C) Section 212(e)(2) of the 2006 Act is amended by 
                striking ``section 305(b)(3) of the Employee Retirement 
                Income Security Act of 1974'' and inserting ``section 
                432(b)(3) of the Internal Revenue Code of 1986''.

SEC. 103. AMENDMENTS RELATED TO TITLE III.

    (a) Amendment Related to Section 301.--Clause (ii) of section 
101(c)(2)(A) of the Pension Funding Equity Act of 2004, as amended by 
section 301(c) of the 2006 Act, is amended by striking ``2008'' and 
inserting ``2009''.
    (b) Amendments Related to Section 302.--
            (1) Amendment to erisa.--Section 205(g)(3)(B)(iii)(II) of 
        ERISA is amended by striking ``section 205(g)(3)(B)(iii)(II)'' 
        and inserting ``section 205(g)(3)(A)(ii)(II)''.
            (2) Amendments to 1986 code.--
                    (A) Section 417(e)(3)(D)(i) of the 1986 Code is 
                amended by striking ``clause (ii)'' and inserting 
                ``subparagraph (C)''.
                    (B)(i) Section 415(b)(2)(E)(v) of the 1986 Code is 
                amended to read as follows:
                            ``(v) For purposes of adjusting any benefit 
                        or limitation under subparagraph (B), (C), or 
                        (D), the mortality table used shall be the 
                        applicable mortality table (within the meaning 
                        of section 417(e)(3)(B)).''.
                    (ii)(I) Except as provided in subclause (II), the 
                amendment made by clause (i) shall apply to years 
                beginning after December 31, 2008.
                    (II) A plan sponsor may elect to have the amendment 
                made by clause (i) apply to any year beginning after 
                December 31, 2007, and before January 1, 2009, or to 
                any portion of any such year.

SEC. 104. AMENDMENTS RELATED TO TITLE IV.

    (a) Amendment Related to Section 401.--Section 4006(a)(3)(A)(i) of 
ERISA is amended by striking ``1990'' and inserting ``2005''.
    (b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the 
2006 Act is amended by striking ``commercial airline'' and inserting 
``commercial''.
    (c) Amendment Related to Section 408.--Section 4044(e) of ERISA, as 
added by section 408(b)(2) of the 2006 Act, is redesignated as 
subsection (f).
    (d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of 
ERISA is amended by striking ``subparagraph (B)'' and inserting 
``subparagraphs (B) and (D)''.
    (e) Amendments Related to Section 410.--Section 4050(d)(4)(A) of 
ERISA is amended--
            (1) by striking ``and'' at the end of clause (i), and
            (2) by striking clause (ii) and inserting the following new 
        clauses:
                            ``(ii) which is not a plan described in 
                        paragraph (2), (3), (4), (6), (7), (8), (9), 
                        (10), or (11) of section 4021(b), and
                            ``(iii) which, was a plan described in 
                        section 401(a) of the Internal Revenue Code of 
                        1986 which includes a trust exempt from tax 
                        under section 501(a) of such Code, and''.

SEC. 105. AMENDMENTS RELATED TO TITLE V.

    (a) Amendment Related to Section 501.--Section 101(f)(2)(B)(ii) of 
ERISA is amended--
            (1) by striking ``for which the latest annual report filed 
        under section 104(a) was filed'' in subclause (I)(aa) and 
        inserting ``to which the notice relates'', and
            (2) by striking subclause (II) and inserting the following 
        new subclause:
                                    ``(II) in the case of a 
                                multiemployer plan, a statement, for 
                                the plan year to which the notice 
                                relates and the preceding 2 plan years, 
                                of the value of the plan assets 
                                (determined both in the same manner as 
                                under section 304 and under the rules 
                                of subclause (I)(bb)) and the value of 
                                the plan liabilities (determined in the 
                                same manner as under section 304 except 
                                that the method specified in section 
                                305(i)(8) shall be used),''.
    (b) Amendments Related to Section 502.--
            (1) Section 101(k)(2) of ERISA is amended by filing at the 
        end the following new flush sentence:
        ``Subparagraph (C)(i) shall not apply to individually 
        identifiable information with respect to any plan investment 
        manager or adviser, or with respect to any other person (other 
        than an employee of the plan) preparing a financial report 
        required to be included under paragraph (1)(B).''.
            (2) Section 4221 of ERISA is amended by striking subsection 
        (e) and by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.
    (c) Amendments Related to Section 503.--
            (1) Amendments to erisa.--
                    (A) Section 104(b)(3) of ERISA is amended by--
                            (i) striking ``section 103(f)'' and 
                        inserting ``section 101(f)'', and
                            (ii) striking ``the administrators'' and 
                        inserting ``the administrator''.
                    (B) Section 104(d)(1)(E)(ii) of ERISA is amended by 
                inserting ``funding'' after ``plan's''.
            (2) Amendments to 2006 act.--Section 503(e) of the 2006 Act 
        is amended by striking ``section 101(f)'' and inserting 
        ``section 104(d)''.
    (d) Amendment Related to Section 505.--Section 4010(d)(2)(B) of 
ERISA is amended by striking ``section 302(d)(2)'' and inserting 
``section 303(d)(2)''.
    (e) Amendments Related to Section 506.--
            (1) Section 4041(c)(2)(D)(i) of ERISA is amended by 
        striking ``subsection (a)(2)'' the second place it appears and 
        inserting ``subparagraph (A) or the regulations under 
        subsection (a)(2)''.
            (2) Section 4042(c)(3)(C)(i) of ERISA is amended--
                    (A) by striking ``and plan sponsor'' and inserting 
                ``, the plan sponsor, or the corporation'', and
                    (B) by striking ``subparagraph (A)(i)'' and 
                inserting ``subparagraph (A)''.
    (f) Amendments Related to Section 508.--Section 209(a) of ERISA is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``regulations prescribed by the 
                Secretary'' and inserting ``such regulations as the 
                Secretary may prescribe'', and
                    (B) by striking the last sentence and inserting 
                ``The report required under this paragraph shall be in 
                the same form, and contain the same information, as 
                periodic benefit statements under section 105(a).'', 
                and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) If more than one employer adopts a plan, each such 
        employer shall furnish to the plan administrator the 
        information necessary for the administrator to maintain the 
        records, and make the reports, required by paragraph (1). Such 
        administrator shall maintain the records, and make the reports, 
        required by paragraph (1).''.
    (g) Amendment Related to Section 509.--Section 101(i)(8)(B) of 
ERISA is amended to read as follows:
                    ``(B) One-participant retirement plan.--For 
                purposes of subparagraph (A), the term `one-participant 
                retirement plan' means a retirement plan that on the 
                first day of the plan year--
                            ``(i) covered only one individual (or the 
                        individual and the individual's spouse) and the 
                        individual (or the individual and the 
                        individual's spouse) owned 100 percent of the 
                        plan sponsor (whether or not incorporated), or
                            ``(ii) covered only one or more partners 
                        (or partners and their spouses) in the plan 
                        sponsor.''.

SEC. 106. AMENDMENTS RELATED TO TITLE VI.

    (a) Amendments Related to Section 601.--
            (1) Amendments to erisa.--
                    (A) Section 408(g)(3)(D)(ii) of ERISA is amended by 
                striking ``subsection (b)(14)(B)(ii)'' and inserting 
                ``subsection (b)(14)(A)(ii)''.
                    (B) Section 408(g)(6)(A)(i) of ERISA is amended by 
                striking ``financial adviser'' and inserting 
                ``fiduciary adviser''.
                    (C) Section 408(g)(11)(A) of ERISA is amended--
                            (i) by striking ``the participant'' each 
                        place it appears and inserting ``a 
                        participant'', and
                            (ii) by striking ``section 408(b)(4)'' in 
                        clause (ii) and inserting ``subsection 
                        (b)(4)''.
            (2) Amendments to 1986 code.--
                    (A) Section 4975(d)(17) of the 1986 Code, in the 
                matter preceding subparagraph (A), is amended by 
                striking ``and that permits'' and inserting ``that 
                permits''.
                    (B) Section 4975(f)(8) of the 1986 Code is 
                amended--
                            (i) in subparagraph (A), by striking 
                        ``subsection (b)(14)'' and inserting 
                        ``subsection (d)(17)'',
                            (ii) in subparagraph (C)(iv)(II), by 
                        striking ``subsection (b)(14)(B)(ii)'' and 
                        inserting ``(d)(17)(A)(ii)'',
                            (iii) in subparagraph (F)(i)(I), by 
                        striking ``financial adviser'' and inserting 
                        ``fiduciary adviser,'',
                            (iv) in subparagraph (I), by striking 
                        ``section 406'' and inserting ``subsection 
                        (c)'', and
                            (v) in subparagraph (J)(i)--
                                    (I) by striking ``the participant'' 
                                each place it appears and inserting ``a 
                                participant'',
                                    (II) in the matter preceding 
                                subclause (I), by inserting ``referred 
                                to in subsection (e)(3)(B)'' after 
                                ``investment advice'', and
                                    (III) in subclause (II), by 
                                striking ``section 408(b)(4)'' and 
                                inserting ``subsection (d)(4)''.
            (3) Amendment to 2006 act.--Section 601(b)(4) of the 2006 
        Act is amended by striking ``section 4975(c)(3)(B)'' and 
        inserting ``section 4975(e)(3)(B)''.
    (b) Amendments Related to Section 611.--
            (1) Amendment to erisa.--Section 408(b)(18)(C) of ERISA is 
        amended by striking ``or less''.
            (2) Amendments to 1986 code.--Section 4975(d) of the 1986 
        Code is amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (18)--
                            (i) by striking ``party in interest'' and 
                        inserting ``disqualified person'', and
                            (ii) by striking ``subsection (e)(3)(B)'' 
                        and inserting ``subsection (e)(3)'',
                    (B) in paragraphs (19), (20), and (21), by striking 
                ``party in interest'' each place it appears and 
                inserting ``disqualified person'', and
                    (C) by striking ``or less'' in paragraph (21)(C).
    (c) Amendments Related to Section 612.--Section 4975(f)(11)(B)(i) 
of the 1986 Code is amended by--
            (1) inserting ``of the Employee Retirement Income Security 
        Act of 1974'' after ``section 407(d)(1)'', and
            (2) inserting ``of such Act'' after ``section 407(d)(2)''.
    (d) Amendments Related to Section 624.--Section 404(c)(5) of ERISA 
is amended by striking ``participant'' each place it appears and 
inserting ``participant or beneficiary''.

SEC. 107. AMENDMENTS RELATED TO TITLE VII.

    (a) Amendments to ERISA.--
            (1) Section 203(f)(1)(B) of ERISA is amended to read as 
        follows:
                    ``(B) the requirements of section 204(c) or 205(g), 
                or the requirements of subsection (e), with respect to 
                accrued benefits derived from employer 
                contributions,''.
            (2) Section 204(b)(5) of ERISA is amended--
                    (A) by striking ``clause'' in subparagraph (A)(iii) 
                and inserting ``subparagraph'', and
                    (B) by inserting ``otherwise'' before ``allowable'' 
                in subparagraph (C).
            (3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is 
        amended to read as follows:
                                    ``(II) Preservation of capital.--An 
                                applicable defined benefit plan shall 
                                be treated as failing to meet the 
                                requirements of paragraph (1)(H) unless 
                                the plan provides that an interest 
                                credit (or equivalent amount) of less 
                                than zero shall in no event result in 
                                the account balance or similar amount 
                                being less than the aggregate amount of 
                                contributions credited to the 
                                account.''.
    (b) Amendments to 1986 Code.--
            (1) Section 411(b)(5) of the 1986 Code is amended--
                    (A) by striking ``clause'' in subparagraph (A)(iii) 
                and inserting ``subparagraph'', and
                    (B) by inserting ``otherwise'' before ``allowable'' 
                in subparagraph (C).
            (2) Section 411(a)(13)(A) of the 1986 Code is amended--
                    (A) by striking ``paragraph (2)'' in clause (i) and 
                inserting ``subparagraph (B)'',
                    (B) by striking clause (ii) and inserting the 
                following new clause:
                            ``(ii) the requirements of subsection 
                        (a)(11) or (c), or the requirements of section 
                        417(e), with respect to accrued benefits 
                        derived from employer contributions,'', and
                    (C) by striking ``paragraph (3)'' in the matter 
                following clause (ii) and inserting ``subparagraph 
                (C)''.
            (3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986 
        Code is amended to read as follows:
                                    ``(II) Preservation of capital.--An 
                                applicable defined benefit plan shall 
                                be treated as failing to meet the 
                                requirements of paragraph (1)(H) unless 
                                the plan provides that an interest 
                                credit (or equivalent amount) of less 
                                than zero shall in no event result in 
                                the account balance or similar amount 
                                being less than the aggregate amount of 
                                contributions credited to the 
                                account.''.
    (c) Amendments to 2006 Act.--
            (1) Section 701(d)(2) of the 2006 Act is amended by 
        striking ``204(g)'' and inserting ``205(g)''.
            (2) Section 701(e) of the 2006 Act is amended--
                    (A) by inserting ``on or'' after ``period'' in 
                paragraph (3),
                    (B) in paragraph (4)--
                            (i) by inserting ``the earlier of'' after 
                        ``before'' in the matter preceding subparagraph 
                        (A), and
                            (ii) by striking ``earlier'' and inserting 
                        ``later'' in subparagraph (A),
                    (C) by inserting ``on or'' before ``after'' each 
                place it appears in paragraph (5), and
                    (D) by adding at the end the following new 
                paragraph:
            ``(6) Special rule for vesting requirements.--The 
        requirements of section 203(f)(2) of the Employee Retirement 
        Income Security Act of 1974 and section 411(a)(13)(B) of the 
        Internal Revenue Code of 1986 (as added by this Act)--
                    ``(A) shall not apply to a participant who does not 
                have an hour of service after the effective date of 
                such requirements (as otherwise determined under this 
                subsection); and
                    ``(B) in the case of a plan other than a plan 
                described in paragraph (3) or (4), shall apply to plan 
                years ending on or after June 29, 2005.''.

SEC. 108. AMENDMENTS RELATED TO TITLE VIII.

    (a) Amendments Related to Section 801.--
            (1) Section 404(o) of the 1986 Code is amended--
                    (A) by striking ``430(g)(2)'' in paragraph 
                (2)(A)(ii) and inserting ``430(g)(3)'', and
                    (B) by striking ``412(f)(4)'' in paragraph (4)(B) 
                and inserting ``412(d)(3)''.
            (2) Section 404(a)(7)(A) of the 1986 Code is amended--
                    (A) by striking the next to last sentence, and
                    (B) by striking ``the plan's funding shortfall 
                determined under section 430'' in the last sentence and 
                inserting ``the excess (if any) of the plan's funding 
                target (as defined in section 430(d)(1)) over the value 
                of the plan's assets (as determined under section 
                430(g)(3))''.
    (b) Amendment Related to Section 802.--Section 404(a)(1)(D)(i) of 
the 1986 Code is amended by striking ``431(c)(6)(C)'' and inserting 
``431(c)(6)(D)''.
    (c) Amendment Related to Section 803.--Clause (iii) of section 
404(a)(7)(C) of the 1986 Code is amended to read as follows:
                            ``(iii) Limitation.--In the case of 
                        employer contributions to 1 or more defined 
                        contribution plans--
                                    ``(I) if such contributions do not 
                                exceed 6 percent of the compensation 
                                otherwise paid or accrued during the 
                                taxable year to the beneficiaries under 
                                such plans, this paragraph shall not 
                                apply to such contributions or to 
                                employer contributions to the defined 
                                benefit plans to which this paragraph 
                                would otherwise apply by reason of 
                                contributions to the defined 
                                contribution plans, and
                                    ``(II) if such contributions exceed 
                                6 percent of such compensation, this 
                                paragraph shall be applied by only 
                                taking into account such contributions 
                                to the extent of such excess.
                        For purposes of this clause, amounts carried 
                        over from preceding taxable years under 
                        subparagraph (B) shall be treated as employer 
                        contributions to 1 or more defined 
                        contributions plans to the extent attributable 
                        to employer contributions to such plans in such 
                        preceding taxable years.''.
    (d) Amendments Related to Section 824.--
            (1) Section 408A(c)(3)(B) of the 1986 Code, as in effect 
        after the amendments made by section 824(b)(1) of the 2006 Act, 
        is amended--
                    (A) by striking the second ``an'' before 
                ``eligible'',
                    (B) by striking ``other than a Roth IRA'', and
                    (C) by adding at the end the following new flush 
                sentence:
                ``This subparagraph shall not apply to a qualified 
                rollover contribution from a Roth IRA or to a qualified 
                rollover contribution from a designated Roth account 
                which is a rollover contribution described in section 
                402A(c)(3)(A).''
            (2) Section 408A(d)(3)(B), as in effect after the 
        amendments made by section 824(b)(2)(B) of the 2006 Act, is 
        amended by striking ``(other than a Roth IRA)'' and by 
        inserting at the end the following new sentence: ``This 
        paragraph shall not apply to a distribution which is a 
        qualified rollover contribution from a Roth IRA or a qualified 
        rollover contribution from a designated Roth account which is a 
        rollover contribution described in section 402A(c)(3)(A)''.
    (e) Amendment to Section 827.--The first sentence of section 
72(t)(2)(G)(iv) of the 1986 Code is amended by inserting ``on or'' 
before ``before''.
    (f) Amendments Related to Section 829.--
            (1) Section 402(c)(11) of the 1986 Code is amended--
                    (A) by inserting ``described in paragraph 
                (8)(B)(iii)'' after ``eligible retirement plan'' in 
                subparagraph (A), and
                    (B) by striking ``trust'' before ``designated 
                beneficiary'' in subparagraph (B).
            (2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by 
        adding at the end the following new sentence: ``Such term shall 
        include any distribution to a designated beneficiary which 
        would be treated as an eligible rollover distribution by reason 
        of subsection (c)(11), or section 403(a)(4)(B), 403(b)(8)(B), 
        or 457(e)(16)(B), if the requirements of subsection (c)(11) 
        were satisfied.''
            (B) Clause (i) of section 402(c)(11)(A) of the 1986 Code is 
        amended by striking ``for purposes of this subsection''.
            (C) The amendments made by this paragraph shall apply with 
        respect to plan years beginning after December 31, 2009.
    (g) Amendment Related to Section 832.--Section 415(f) of the 1986 
Code is amended by striking paragraph (2) and by redesignating 
paragraph (3) as paragraph (2).
    (h) Amendments Related to Section 833.--
            (1) Section 408A(c)(3)(C) of the 1986 Code, as added by 
        section 833(c) of the 2006 Act, is redesignated as subparagraph 
        (E).
            (2) In the case of taxable years beginning after December 
        31, 2009, section 408A(c)(3)(E) of the 1986 Code (as 
        redesignated by paragraph (1))--
                    (A) is redesignated as subparagraph (D), and
                    (B) is amended by striking ``subparagraph (C)(ii)'' 
                and inserting ``subparagraph (B)(ii)''.
    (i) Amendments Related to Section 841.--
            (1) Section 420(c)(1)(A) of the 1986 Code is amended by 
        adding at the end the following new sentence: ``In the case of 
        a qualified future transfer or collectively bargained transfer 
        to which subsection (f) applies, any assets so transferred may 
        also be used to pay liabilities described in subsection 
        (f)(2)(C).''
            (2) Section 420(f)(2) of the 1986 Code is amended by 
        striking ``such'' before ``the applicable'' in subparagraph 
        (D)(i)(I).
            (3) Section 4980(c)(2)(B) of the 1986 Code is amended by 
        striking ``or'' at the end of clause (i), by striking the 
        period at the end of clause (ii) and inserting ``, or'', and by 
        adding at the end the following new clause:
                            ``(iii) any transfer described in section 
                        420(f)(2)(B)(ii)(II).''.
    (j) Amendments Related to Section 845.--
            (1) Subsection (l) of section 402 of the 1986 Code is 
        amended--
                    (A) in paragraph (1)--
                            (i) by inserting ``maintained by the 
                        employer described in paragraph (4)(B)'' after 
                        ``an eligible retirement plan'', and
                            (ii) by striking ``of the employee, his 
                        spouse, or dependents (as defined in section 
                        152)'' ,
                    (B) in paragraph (4)(D), by--
                            (i) inserting ``(as defined in section 
                        152)'' after ``dependents'', and
                            (ii) striking ``health insurance plan'' and 
                        inserting ``health plan'', and
                    (C) in paragraph (5)(A), by striking ``health 
                insurance plan'' and inserting ``health plan''.
            (2) Subparagraph (B) of section 402(l)(3) of the 1986 Code 
        is amended by striking ``all amounts distributed from all 
        eligible retirement plans were treated as 1 contract for 
        purposes of determining the inclusion of such distribution 
        under section 72'' and inserting ``all amounts to the credit of 
        the eligible public safety officer in all eligible retirement 
        plans maintained by the employer described in paragraph (4)(B) 
        were distributed during such taxable year and all such plans 
        were treated as 1 contract for purposes of determining under 
        section 72 the aggregate amount which would have been so 
        includible''.
    (k) Amendments Related to Section 854.--
            (1) Section 3121(b)(5)(E) of the 1986 Code is amended by 
        striking ``or special trial judge''.
            (2) Section 210(a)(5)(E) of the Social Security Act is 
        amended by striking ``or special trial judge''.
    (l) Amendments Related to Section 856.--Section 856 of the 2006 
Act, and the amendments made by such section, are hereby repealed, and 
the Internal Revenue Code of 1986 shall be applied and administered as 
if such sections and amendments had not been enacted.
    (m) Amendment Related to Section 864.--Section 864(a) of the 2006 
Act is amended by striking ``Reconciliation''.

SEC. 109. AMENDMENTS RELATED TO TITLE IX.

    (a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of 
the 1986 Code is amended to read as follows:
                            ``(iv) One-participant retirement plan.--
                        For purposes of clause (iii), the term `one-
                        participant retirement plan' means a retirement 
                        plan that on the first day of the plan year--
                                    ``(I) covered only one individual 
                                (or the individual and the individual's 
                                spouse) and the individual (or the 
                                individual and the individual's spouse) 
                                owned 100 percent of the plan sponsor 
                                (whether or not incorporated), or
                                    ``(II) covered only one or more 
                                partners (or partners and their 
                                spouses) in the plan sponsor.''.
    (b) Amendments Related to Section 902.--
            (1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended 
        by striking ``such compensation as exceeds 1 percent but does 
        not'' and inserting ``such contributions as exceed 1 percent 
        but do not''.
            (2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code 
        are each amended--
                    (A) by striking ``an erroneous automatic 
                contribution'' and inserting ``a permissible 
                withdrawal'', and
                    (B) by striking ``erroneous automatic 
                contribution'' in the heading and inserting 
                ``permissible withdrawal''.
            (3) Section 402(g)(2)(A)(ii) of the 1986 Code is amended by 
        inserting ``through the end of such taxable year'' after ``such 
        amount''.
            (4) Section 414(w)(3) of the 1986 Code is amended--
                    (A) in subparagraph (B), by inserting ``and'' after 
                the comma at the end,
                    (B) by striking subparagraph (C), and
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C).
            (5) Section 414(w)(5) of the 1986 Code is amended by 
        striking ``and'' at the end of subparagraph (B), by striking 
        the period at the end of subparagraph (C) and inserting a 
        comma, and by adding at the end the following:
                    ``(D) a simplified employee pension the terms of 
                which provide for a salary reduction arrangement 
                described in section 408(k)(6), and
                    ``(E) a simple retirement account (as defined in 
                section 408(p)).''.
            (6) Section 414(w)(6) of the 1986 Code is amended by 
        inserting ``or for purposes of applying the limitation under 
        section 402(g)(1)'' before the period at the end.
    (c) Amendments Related to Section 903.--
            (1) Amendment of 1986 code.--Section 414(x)(1) of the 1986 
        Code is amended by adding at the end of paragraph (1) the 
        following new sentence: ``In the case of a termination of the 
        defined benefit plan and the applicable defined contribution 
        plan forming part of an eligible combined plan, the plan 
        administrator shall terminate each such plan separately.''
            (2) Amendments of erisa.--Section 210(e) of ERISA is 
        amended--
                    (A) by adding at the end of paragraph (1) the 
                following new sentence: ``In the case of a termination 
                of the defined benefit plan and the applicable defined 
                contribution plan forming part of an eligible combined 
                plan, the plan administrator shall terminate each such 
                plan separately.'', and
                    (B) by striking paragraph (3) and by redesignating 
                paragraphs (4), (5), and (6) as paragraphs (3), (4), 
                and (5), respectively.
    (d) Amendments Related to Section 906.--
            (1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by 
        striking ``paragraph (1)'' and inserting ``paragraph (10)''.
            (2) Section 4021(b) of ERISA is amended by inserting ``or'' 
        at the end of paragraph (12), by striking ``; or'' at the end 
        of paragraph (13) and inserting a period, and by striking 
        paragraph (14).

SEC. 110. AMENDMENTS RELATED TO TITLE X.

    (a) Amendments to Railroad Retirement Act.--
            (1) Section 14(b) of the Railroad Retirement Act of 1974 
        (45 U.S.C. 231m(b)) is amended by adding at the end the 
        following:
            ``(3)(A) Payments made pursuant to paragraph (2) of this 
        subsection shall not require that the employee be entitled to 
        an annuity under section 2(a)(1) of this Act: Provided, 
        however, That where an employee is not entitled to such an 
        annuity, payments made pursuant to paragraph (2) may not begin 
        before the month in which the following three conditions are 
        satisfied:
                    ``(i) The employee has completed ten years of 
                service in the railroad industry or, five years of 
                service all of which accrues after December 31, 1995.
                    ``(ii) The spouse or former spouse attains age 62.
                    ``(iii) The employee attains age 62 (or if 
                deceased, would have attained age 62).
            ``(B) Payments made pursuant to paragraph (2) of this 
        subsection shall terminate upon the death of the spouse or 
        former spouse, unless the court document provides for 
        termination at an earlier date. Notwithstanding the language in 
        a court order, that portion of payments made pursuant to 
        paragraph (2) which represents payments computed pursuant to 
        section 3(f)(2) of this Act shall not be paid after the death 
        of the employee.
            ``(C) If the employee is not entitled to an annuity under 
        section 2(a)(1) of this Act, payments made pursuant to 
        paragraph (2) of this subsection shall be computed as though 
        the employee were entitled to an annuity.''.
            (2) Subsection (d) of section 5 of the Railroad Retirement 
        Act (45 U.S.C. 231d) is repealed.
    (b) Effective Dates.--
            (1) Subsection (a)(1).--The amendment made by subsection 
        (a)(1) shall apply with respect to payments due for months 
        after August 2007. If, prior to the effective date of such 
        amendment, payment pursuant to paragraph (2) of section 14(b) 
        of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(b)) was 
        terminated because of the employee's death, payment to the 
        former spouse may be reinstated for months after August 2007.
            (2) Subsection (a)(2).--The amendment made by subsection 
        (a)(2) shall take effect upon the date of the enactment of this 
        Act.

SEC. 111. AMENDMENTS RELATED TO TITLE XI.

    (a) Amendment Related to Section 1104.--Section 1104(d)(1) of the 
2006 Act is amended by striking ``Act'' the first place it appears and 
inserting ``section''.
    (b) Amendments Related to Section 1105.--Section 3304(a) of the 
1986 Code is amended--
            (1) in paragraph (15)--
                    (A) by redesignating clauses (i) and (ii) of 
                subparagraph (A) as subclauses (I) and (II),
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii),
                    (C) by striking the semicolon at the end of clause 
                (ii) (as so redesignated) and inserting ``, and'',
                    (D) by striking ``(15)'' and inserting ``(15)(A) 
                subject to subparagraph (B),'', and
                    (E) by adding at the end the following:
                    ``(B) the amount of compensation shall not be 
                reduced on account of any payments of governmental or 
                other pensions, retirement or retired pay, annuity, or 
                other similar payments which are not includible in the 
                gross income of the individual for the taxable year in 
                which it was paid because it was part of a rollover 
                distribution;'', and
            (2) by striking the last sentence.
    (c) Amendments Related to Section 1106.--Section 3(37)(G) of ERISA 
is amended by--
            (1) striking ``paragraph'' each place it appears in clauses 
        (ii), (iii), and (v)(I) and inserting ``subparagraph'',
            (2) striking ``subclause (i)(II)'' in clause (iii) and 
        inserting ``clause (i)(II)'',
            (3) striking ``subparagraph'' in clause (v)(II) and 
        inserting ``clause'', and
            (4) by striking ``section 101(b)(4)'' in clause (v)(III) 
        and inserting ``section 101(b)(1)''.

SEC. 112. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, the amendments made 
by this subtitle shall take effect as if included in the provisions of 
the 2006 Act to which the amendments relate.

                      Subtitle B--Other Provisions

SEC. 121. AMENDMENTS RELATED TO SECTIONS 102 AND 112 OF THE PENSION 
              PROTECTION ACT OF 2006.

    (a) Amendment of ERISA.--The last sentence of section 303(g)(3)(B) 
of ERISA is amended to read as follows: ``Any such averaging shall be 
adjusted for contributions, distributions, and expected earnings (as 
determined by the plan's actuary on the basis of an assumed earnings 
rate specified by the actuary but not in excess of the third segment 
rate applicable under subsection (h)(2)(C)(iii)), as specified by the 
Secretary of the Treasury.''.
    (b) Amendment of 1986 Code.--The last sentence of section 
430(g)(3)(B) of the 1986 Code is amended to read as follows: ``Any such 
averaging shall be adjusted for contributions, distributions, and 
expected earnings (as determined by the plan's actuary on the basis of 
an assumed earnings rate specified by the actuary but not in excess of 
the third segment rate applicable under subsection (h)(2)(C)(iii)), as 
specified by the Secretary.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the 2006 Act to which the 
amendments relate.

SEC. 122. MODIFICATION OF INTEREST RATE ASSUMPTION REQUIRED WITH 
              RESPECT TO CERTAIN SMALL EMPLOYER PLANS.

    (a) In General.--Subparagraph (E) of section 415(b)(2) of the 1986 
Code (relating to limitation on certain assumptions) is amended by 
adding at the end the following new clause:
                            ``(vi) In the case of a plan maintained by 
                        an eligible employer (as defined in section 
                        408(p)(2)(C)(i)), clause (ii) shall be applied 
                        without regard to subclause (II) thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 2008.

SEC. 123. DETERMINATION OF MARKET RATE OF RETURN FOR GOVERNMENTAL 
              PLANS.

    (a) Amendment of ADEA.--Section 4(i)(10)(B)(i)(III) of the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 
623(i)(10)(B)(i)(III)) is amended by adding at the end the following: 
``In the case of a governmental plan (as defined in the first sentence 
of section 414(d) of the Internal Revenue Code of 1986), a rate of 
return or a method of crediting interest established pursuant to any 
provision of Federal, State, or local law (including any administrative 
rule or policy adopted in accordance with any such law) shall be 
treated as a market rate of return for purposes of subclause (I) and a 
permissible method of crediting interest for purposes of meeting the 
requirements of subclause (I), except that this sentence shall only 
apply to a rate of return or method of crediting interest if such rate 
or method does not violate any other requirement of this Act.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provisions of the Pension Protection Act 
of 2006 to which such amendment relates.

SEC. 124. TREATMENT OF CERTAIN REIMBURSEMENTS FROM GOVERNMENTAL PLANS 
              FOR MEDICAL CARE.

    (a) In General.--Section 105 of the 1986 Code (relating to amounts 
received under accident and health plans) is amended by adding at the 
end the following new subsection:
    ``(j) Special Rule for Certain Governmental Plans.--
            ``(1) In general.--For purposes of subsection (b), amounts 
        paid (directly or indirectly) to the taxpayer from an accident 
        or health plan described in paragraph (2) shall not fail to be 
        excluded from gross income solely because such plan, on or 
        before January 1, 2008, provides for reimbursements of health 
        care expenses of a deceased plan participant's beneficiary.
            ``(2) Plan described.--An accident or health plan is 
        described in this paragraph if such plan is funded by a medical 
        trust that is established in connection with a public 
        retirement system and that--
                    ``(A) has been authorized by a State legislature, 
                or
                    ``(B) has received a favorable ruling from the 
                Internal Revenue Service that the trust's income is not 
                includible in gross income under section 115.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments before, on, or after the date of the enactment of 
this Act.

SEC. 125. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER BANKRUPTCY TO 
              ROTH IRAS.

    (a) General Rule.--If a qualified airline employee receives any 
airline payment amount and transfers any portion of such amount to a 
Roth IRA within 180 days of receipt of such amount (or, if later, 
within 180 days of the date of the enactment of this Act), then such 
amount (to the extent so transferred) shall be treated as a qualified 
rollover contribution described in section 408A(e) of the Internal 
Revenue Code of 1986, and the limitations described in section 
408A(c)(3) of such Code shall not apply to any such transfer.
    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Airline payment amount.--
                    (A) In general.--The term ``airline payment 
                amount'' means any payment of any money or other 
                property which is payable by a commercial passenger 
                airline carrier to a qualified airline employee--
                            (i) under the approval of an order of a 
                        Federal bankruptcy court in a case filed after 
                        September 11, 2001, and before January 1, 2007, 
                        and
                            (ii) in respect of the qualified airline 
                        employee's interest in a bankruptcy claim 
                        against the carrier, any note of the carrier 
                        (or amount paid in lieu of a note being 
                        issued), or any other fixed obligation of the 
                        carrier to pay a lump sum amount.
                The amount of such payment shall be determined without 
                regard to any requirement to deduct and withhold tax 
                from such payment under sections 3102(a) and 3402(a).
                    (B) Exception.--An airline payment amount shall not 
                include any amount payable on the basis of the 
                carrier's future earnings or profits.
            (2) Qualified airline employee.--The term ``qualified 
        airline employee'' means an employee or former employee of a 
        commercial passenger airline carrier who was a participant in a 
        defined benefit plan maintained by the carrier which--
                    (A) is a plan described in section 401(a) of the 
                Internal Revenue Code of 1986 which includes a trust 
                exempt from tax under section 501(a) of such Code, and
                    (B) was terminated or became subject to the 
                restrictions contained in paragraphs (2) and (3) of 
                section 402(b) of the Pension Protection Act of 2006.
            (3) Reporting requirements.--If a commercial passenger 
        airline carrier pays 1 or more airline payment amounts, the 
        carrier shall, within 90 days of such payment (or, if later, 
        within 90 days of the date of the enactment of this Act), 
        report--
                    (A) to the Secretary of the Treasury, the names of 
                the qualified airline employees to whom such amounts 
                were paid, and
                    (B) to the Secretary and to such employees, the 
                years and the amounts of the payments.
        Such reports shall be in such form, and contain such additional 
        information, as the Secretary may prescribe.
    (c) Effective Date.--This section shall apply to transfers made 
after the date of the enactment of this Act with respect to airline 
payment amounts paid before, on, or after such date.

SEC. 126. DETERMINATION OF ASSET VALUE FOR SPECIAL AIRLINE FUNDING 
              RULES.

    (a) In General.--Section 402(e)(4)(C) of the 2006 Act is amended to 
read as follows:
                    ``(C) the value of plan assets shall be determined 
                under sections 303(g)(3) of such Act and 430(g)(3) of 
                such Code.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 2007.

SEC. 127. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
              RETURNS.

    (a) In General.--Section 6698(b)(1) of the 1986 Code is amended by 
striking ``$85'' and inserting ``$89''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to returns required to be filed after December 31, 2008.

SEC. 128. MODIFICATION OF PENALTY FOR FAILURE TO FILE S CORPORATION 
              RETURNS.

    (a) In General.--Section 6699(b)(1) of the 1986 Code is amended by 
striking ``$85'' and inserting ``$89''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to returns required to be filed after December 31, 2008.

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR 
              CERTAIN RETIREMENT PLANS AND ACCOUNTS.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986 (relating to required distributions) is amended by adding at the 
end the following new subparagraph:
                    ``(H) Temporary waiver of minimum required 
                distribution.--
                            ``(i) In general.--The requirements of this 
                        paragraph shall not apply for calendar year 
                        2009 to--
                                    ``(I) a defined contribution plan 
                                which is described in this subsection 
                                or in section 403(a) or 403(b),
                                    ``(II) a defined contribution plan 
                                which is an eligible deferred 
                                compensation plan described in section 
                                457(b) but only if such plan is 
                                maintained by an employer described in 
                                section 457(e)(1)(A), or
                                    ``(III) an individual retirement 
                                plan.
                            ``(ii) Special rules regarding waiver 
                        period.--For purposes of this paragraph--
                                    ``(I) the required beginning date 
                                with respect to any individual shall be 
                                determined without regard to this 
                                subparagraph for purposes of applying 
                                this paragraph for calendar years after 
                                2009, and
                                    ``(II) if clause (ii) of 
                                subparagraph (B) applies, the 5-year 
                                period described in such clause shall 
                                be determined without regard to 
                                calendar year 2009.''.
    (b) Eligible Rollover Distributions.--Section 402(c)(4) of the 
Internal Revenue Code of 1986 (defining eligible rollover distribution) 
is amended by adding at the end the following new flush sentence:
        ``If all or any portion of a distribution during 2009 is 
        treated as an eligible rollover distribution but would not be 
        so treated if the minimum distribution requirements under 
        section 401(a)(9) had applied during 2009, such distribution 
        shall not be treated as an eligible rollover distribution for 
        purposes of section 401(a)(31) or 3405(c) or subsection (f) of 
        this section.''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply for calendar years beginning after December 31, 2008.
            (2) Provisions relating to plan or contract amendments.--
                    (A) In general.--If this paragraph applies to any 
                pension plan or contract amendment, such pension plan 
                or contract shall not fail to be treated as being 
                operated in accordance with the terms of the plan 
                during the period described in subparagraph (B)(ii) 
                solely because the plan operates in accordance with 
                this section.
                    (B) Amendments to which paragraph applies.--
                            (i) In general.--This paragraph shall apply 
                        to any amendment to any pension plan or annuity 
                        contract which--
                                    (I) is made pursuant to the 
                                amendments made by this section, and
                                    (II) is made on or before the last 
                                day of the first plan year beginning on 
                                or after January 1, 2011.
                        In the case of a governmental plan, subclause 
                        (II) shall be applied by substituting ``2012'' 
                        for ``2011''.
                            (ii) Conditions.--This paragraph shall not 
                        apply to any amendment unless during the period 
                        beginning on the effective date of the 
                        amendment and ending on December 31, 2009, the 
                        plan or contract is operated as if such plan or 
                        contract amendment were in effect.

SEC. 202. TRANSITION RULE CLARIFICATION.

    (a) Amendment to ERISA.--Subparagraph (B) of section 303(c)(5) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1083(c)(5)) is amended--
            (1) by striking clause (iii) and redesignating clause (iv) 
        as clause (iii); and
            (2) by striking clause (i) and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (iii), in the case of plan years 
                        beginning after 2007 and before 2011, only the 
                        applicable percentage of the funding target 
                        shall be taken into account under paragraph 
                        (3)(A) in determining the funding shortfall for 
                        purposes of paragraph (3)(A) and subparagraph 
                        (A).''.
    (b) Amendment to 1986 Code.--Subparagraph (B) of section 430(c)(5) 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking clause (iii) and redesignating clause (iv) 
        as clause (iii); and
            (2) by striking clause (i) and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (iii), in the case of plan years 
                        beginning after 2007 and before 2011, only the 
                        applicable percentage of the funding target 
                        shall be taken into account under paragraph 
                        (3)(A) in determining the funding shortfall for 
                        purposes of paragraph (3)(A) and subparagraph 
                        (A).''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 102 and 112, 
respectively, of the Pension Protection Act of 2006.

SEC. 203. TEMPORARY MODIFICATION OF APPLICATION OF LIMITATION ON 
              BENEFIT ACCRUALS.

    In the case of the first plan year beginning during the period 
beginning on October 1, 2008, and ending on September 30, 2009, 
sections 206(g)(4)(A) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue 
Code of 1986 shall be applied by substituting the plan's adjusted 
funding target attainment percentage for the preceding plan year for 
such percentage for such plan year but only if the adjusted funding 
target attainment percentage for the preceding plan year is greater.

SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS IN 
              ENDANGERED OR CRITICAL STATUS.

    (a) In General.--Notwithstanding the actuarial certification under 
section 305(b)(3) of the Employee Retirement Income Security Act of 
1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a 
plan sponsor of a multiemployer plan elects the application of this 
section, then, for purposes of section 305 of such Act and section 432 
of such Code--
            (1) the status of the plan for its first plan year 
        beginning during the period beginning on October 1, 2008, and 
        ending on September 30, 2009, shall be the same as the status 
        of such plan under such sections for the plan year preceding 
        such plan year, and
            (2) in the case of a plan which was in endangered or 
        critical status for the preceding plan year described in 
        paragraph (1), the plan shall not be required to update its 
        plan or schedules under section 305(c)(6) of such Act and 
        section 432(c)(6) of such Code, or section 305(e)(3)(B) of such 
        Act and section 432(e)(3)(B) of such Code, whichever is 
        applicable, until the plan year following the first plan year 
        described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 1986 did not apply to 
the preceding plan year described in paragraph (1), the plan actuary 
shall make a certification of the status of the plan under section 
305(b)(3) of such Act and section 432(b)(3) of such Code for the 
preceding plan year in the same manner as if such sections had applied 
to such preceding plan year.
    (b) Exception for Plans Becoming Critical During Election.--If--
            (1) an election was made under subsection (a) with respect 
        to a multiemployer plan, and
            (2) such plan has, without regard to such election, been 
        certified by the plan actuary under section 305(b)(3) of such 
        Act and section 432(b)(3) of such Code to be in critical status 
        for the first plan year described in subsection (a)(1),
then such plan shall be treated as a plan in critical status for such 
plan year for purposes of applying section 4971(g)(1)(A) of such Code, 
section 302(b)(3) of such Act (without regard to the second sentence 
thereof), and section 412(b)(3) of such Code (without regard to the 
second sentence thereof).
    (c) Election and Notice.--
            (1) Election.--An election under subsection (a) shall--
                    (A) be made at such time and in such manner as the 
                Secretary of the Treasury or the Secretary's delegate 
                may prescribe and, once made, may be revoked only with 
                the consent of the Secretary, and
                    (B) if the election is made--
                            (i) before the date the annual 
                        certification is submitted to the Secretary or 
                        the Secretary's delegate under section 
                        305(b)(3) of such Act and section 432(b)(3) of 
                        such Code, be included with such annual 
                        certification, and
                            (ii) after such date, be submitted to the 
                        Secretary or the Secretary's delegate not later 
                        than 30 days after the date of the election.
            (2) Notice to participants.--
                    (A) In general.--Notwithstanding section 
                305(b)(3)(D) of such Act and section 431(b)(3)(D) of 
                such Code, if the plan is neither in endangered nor 
                critical status by reason of an election made under 
                subsection (a)--
                            (i) the plan sponsor of a multiemployer 
                        plan shall not be required to provide notice 
                        under such sections, and
                            (ii) the plan sponsor shall provide to the 
                        participants and beneficiaries, the bargaining 
                        parties, the Pension Benefit Guaranty 
                        Corporation, and the Secretary of Labor a 
                        notice of the election and such other 
                        information as the Secretary of the Treasury 
                        (in consultation with the Secretary of Labor) 
                        may require--
                                    (I) if the election is made before 
                                the date the annual certification is 
                                submitted to the Secretary or the 
                                Secretary's delegate under section 
                                305(b)(3) of such Act and section 
                                432(b)(3) of such Code, not later than 
                                30 days after the date of the 
                                certification, and
                                    (II) if the election is made after 
                                such date, not later than 30 days after 
                                the date of the election.
                    (B) Notice of endangered status.--Notwithstanding 
                section 305(b)(3)(D) of such Act and section 
                431(b)(3)(D) of such Code, if the plan is certified to 
                be in critical status for any plan year but is in 
                endangered status by reason of an election made under 
                subsection (a), the notice provided under such sections 
                shall be the notice which would have been provided if 
                the plan had been certified to be in endangered status.

SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND 
              REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN 
              CRITICAL AND ENDANGERED STATUS FOR 2008 OR 2009.

    (a) In General.--If the plan sponsor of a multiemployer plan which 
is in endangered or critical status for a plan year beginning in 2008 
or 2009 (determined after application of section 204) elects the 
application of this section, then, for purposes of section 305 of the 
Employee Retirement Income Security Act of 1974 and section 432 of the 
Internal Revenue Code of 1986--
            (1) except as provided in paragraph (2), the plan's funding 
        improvement period or rehabilitation period, whichever is 
        applicable, shall be 13 years rather than 10 years, and
            (2) in the case of a plan in seriously endangered status, 
        the plan's funding improvement period shall be 18 years rather 
        than 15 years.
    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Election.--An election under this section shall be made 
        at such time, and in such manner and form, as (in consultation 
        with the Secretary of Labor) the Secretary of the Treasury or 
        the Secretary's delegate may prescribe.
            (2) Definitions.--Any term which is used in this section 
        which is also used in section 305 of the Employee Retirement 
        Income Security Act of 1974 and section 432 of the Internal 
        Revenue Code of 1986 shall have the same meaning as when used 
        in such sections.
    (c) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2007.

            Passed the House of Representatives December 10, 2008.

            Attest:

                                                                 Clerk.
110th CONGRESS

  2d Session

                               H. R. 7327

_______________________________________________________________________

                                 AN ACT

To make technical corrections related to the Pension Protection Act of 
                     2006, and for other purposes.