[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7327 Enrolled Bill (ENR)]

        H.R.7327

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Worker, Retiree, 
and Employer Recovery Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

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

Sec. 100. References in title.

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

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

                      Subtitle B--Other Provisions

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

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

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

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

    SEC. 100. REFERENCES IN TITLE.
    For purposes of this title:
        (1) Amendment of 1986 code.--The term ``1986 Code'' means the 
    Internal Revenue Code of 1986.
        (2) Amendment of erisa.--The term ``ERISA'' means the Employee 
    Retirement Income Security Act of 1974.
        (3) 2006 act.--The term ``2006 Act'' means the Pension 
    Protection Act of 2006.

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

    SEC. 101. AMENDMENTS RELATED TO TITLE I.
    (a) Amendments Related to Sections 101 and 111.--
        (1) Amendments to erisa.--
            (A) Clause (i) of section 302(c)(1)(A) of ERISA is amended 
        by striking ``the plan is'' and inserting ``the plan are''.
            (B) Section 302(c)(7) of ERISA is amended by inserting 
        ``which reduces the accrued benefit of any participant'' after 
        ``subsection (d)(2)'' in subparagraph (A).
            (C) Section 302(d)(1) of ERISA is amended by striking ``, 
        the valuation date,''.
        (2) Amendments to 1986 code.--
            (A) Clause (i) of section 412(c)(1)(A) of the 1986 Code is 
        amended by striking ``the plan is'' and inserting ``the plan 
        are''.
            (B) Section 412(c)(7) of the 1986 Code is amended by 
        inserting ``which reduces the accrued benefit of any 
        participant'' after ``subsection (d)(2)'' in subparagraph (A).
            (C) Section 412(d)(1) of the 1986 Code is amended by 
        striking ``, the valuation date,''.
    (b) Amendments Related to Sections 102 and 112.--
        (1) Amendments to erisa.--
            (A) Section 303(b) of ERISA is amended to read as follows:
    ``(b) Target Normal Cost.--For purposes of this section:
        ``(1) In general.--Except as provided in subsection (i)(2) with 
    respect to plans in at-risk status, the term `target normal cost' 
    means, for any plan year, the excess of--
            ``(A) the sum of--
                ``(i) the present value of all benefits which are 
            expected to accrue or to be earned under the plan during 
            the plan year, plus
                ``(ii) the amount of plan-related expenses expected to 
            be paid from plan assets during the plan year, over
            ``(B) the amount of mandatory employee contributions 
        expected to be made during the plan year.
        ``(2) Special rule for increase in compensation.--For purposes 
    of this subsection, if any benefit attributable to services 
    performed in a preceding plan year is increased by reason of any 
    increase in compensation during the current plan year, the increase 
    in such benefit shall be treated as having accrued during the 
    current plan year.''.
            (B) Section 303(c)(5)(B)(iii) of ERISA is amended by 
        inserting ``beginning'' before ``after 2008''.
            (C) Section 303(c)(5)(B)(iv)(II) of ERISA is amended by 
        inserting ``for such year'' after ``beginning in 2007)''.
            (D) Section 303(f)(4)(A) of ERISA is amended by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.
            (E) Section 303(h)(2)(F) of ERISA is amended--
                (i) by striking ``section 205(g)(3)(B)(iii)(I)) for 
            such month'' and inserting ``section 205(g)(3)(B)(iii)(I) 
            for such month)'', and
                (ii) by striking ``subparagraph (B)'' and inserting 
            ``subparagraph (C)''.
            (F) Section 303(i) of ERISA is amended--
                (i) in paragraph (2)--

                    (I) by striking subparagraph (A) and inserting the 
                following new subparagraph:

            ``(A) the excess of--
                ``(i) the sum of--

                    ``(I) the present value of all benefits which are 
                expected to accrue or to be earned under the plan 
                during the plan year, determined using the additional 
                actuarial assumptions described in paragraph (1)(B), 
                plus
                    ``(II) the amount of plan-related expenses expected 
                to be paid from plan assets during the plan year, over

                ``(ii) the amount of mandatory employee contributions 
            expected to be made during the plan year, plus'', and

                    (II) in subparagraph (B), by striking ``the target 
                normal cost (determined without regard to this 
                paragraph) of the plan for the plan year'' and 
                inserting ``the amount determined under subsection 
                (b)(1)(A)(i) with respect to the plan for the plan 
                year'', and

                (ii) by striking ``subparagraph (A)(ii)'' in the last 
            sentence of paragraph (4)(B) and inserting ``subparagraph 
            (A)''.
            (G) Section 303(j)(3) of ERISA--
                (i) is amended by adding at the end of subparagraph (A) 
            the following new sentence: ``In the case of plan years 
            beginning in 2008, the funding shortfall for the preceding 
            plan year may be determined using such methods of 
            estimation as the Secretary of the Treasury may provide.'',
                (ii) by adding at the end of subparagraph (E) the 
            following new clause:
                ``(iii) Plan with alternate valuation date.--The 
            Secretary of the Treasury shall prescribe regulations for 
            the application of this paragraph in the case of a plan 
            which has a valuation date other than the first day of the 
            plan year.'', and
                (iii) by striking ``and short years'' in the heading of 
            subparagraph (E) and inserting ``, short years, and years 
            with alternate valuation date''.
            (H) Section 303(k)(6)(B) of ERISA is amended by striking 
        ``, except'' and all that follows and inserting a period.
        (2) Amendments to 1986 code.--
            (A) Section 430(b) of the 1986 Code is amended to read as 
        follows:
    ``(b) Target Normal Cost.--For purposes of this section:
        ``(1) In general.--Except as provided in subsection (i)(2) with 
    respect to plans in at-risk status, the term `target normal cost' 
    means, for any plan year, the excess of--
            ``(A) the sum of--
                ``(i) the present value of all benefits which are 
            expected to accrue or to be earned under the plan during 
            the plan year, plus
                ``(ii) the amount of plan-related expenses expected to 
            be paid from plan assets during the plan year, over
            ``(B) the amount of mandatory employee contributions 
        expected to be made during the plan year.
        ``(2) Special rule for increase in compensation.--For purposes 
    of this subsection, if any benefit attributable to services 
    performed in a preceding plan year is increased by reason of any 
    increase in compensation during the current plan year, the increase 
    in such benefit shall be treated as having accrued during the 
    current plan year.''.
            (B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended 
        by inserting ``beginning'' before ``after 2008''.
            (C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is 
        amended by inserting ``for such year'' after ``beginning in 
        2007)''.
            (D) Section 430(f) of the 1986 Code is amended--
                (i) by striking ``as of the first day of the plan 
            year'' the second place it appears in the first sentence of 
            paragraph (3)(A),
                (ii) by striking ``paragraph (2)'' in paragraph (4)(A) 
            and inserting ``paragraph (3)'',
                (iii) by striking ``paragraph (1), (2), or (4) of 
            section 206(g)'' in paragraph (6)(B)(iii) and inserting 
            ``subsection (b), (c), or (e) of section 436'',
                (iv) by striking ``the sum of'' in paragraph (6)(C), 
            and
                (v) by striking ``of the Treasury'' in paragraph (8).
            (E) Section 430(h)(2) of the 1986 Code is amended--
                (i) by inserting ``and target normal cost'' after 
            ``funding target'' in subparagraph (B),
                (ii) by striking ``liabilities'' and inserting 
            ``benefits'' in subparagraph (B),
                (iii) by striking ``section 417(e)(3)(D)(i)) for such 
            month'' in subparagraph (F) and inserting ``section 
            417(e)(3)(D)(i) for such month)'', and
                (iv) by striking ``subparagraph (B)'' in subparagraph 
            (F) and inserting ``subparagraph (C)''.
            (F) Section 430(i) of the 1986 Code is amended--
                (i) in paragraph (2)--

                    (I) by striking subparagraph (A) and inserting the 
                following new subparagraph:

            ``(A) the excess of--
                ``(i) the sum of--

                    ``(I) the present value of all benefits which are 
                expected to accrue or to be earned under the plan 
                during the plan year, determined using the additional 
                actuarial assumptions described in paragraph (1)(B), 
                plus
                    ``(II) the amount of plan-related expenses expected 
                to be paid from plan assets during the plan year, over

                ``(ii) the amount of mandatory employee contributions 
            expected to be made during the plan year, plus'', and

                    (II) in subparagraph (B), by striking ``the target 
                normal cost (determined without regard to this 
                paragraph) of the plan for the plan year'' and 
                inserting ``the amount determined under subsection 
                (b)(1)(A)(i) with respect to the plan for the plan 
                year'', and

                (ii) by striking ``subparagraph (A)(ii)'' in the last 
            sentence of paragraph (4)(B) and inserting ``subparagraph 
            (A)''.
            (G) Section 430(j)(3) of the 1986 Code is amended--
                (i) by adding at the end of subparagraph (A) the 
            following new sentence: ``In the case of plan years 
            beginning in 2008, the funding shortfall for the preceding 
            plan year may be determined using such methods of 
            estimation as the Secretary may provide.'',
                (ii) by striking ``section 302(c)'' in subparagraph 
            (D)(ii)(II) and inserting ``section 412(c)'',
                (iii) by adding at the end of subparagraph (E) the 
            following new clause:
                ``(iii) Plan with alternate valuation date.--The 
            Secretary shall prescribe regulations for the application 
            of this paragraph in the case of a plan which has a 
            valuation date other than the first day of the plan 
            year.'', and
                (iv) by striking ``and short years'' in the heading of 
            subparagraph (E) and inserting ``, short years, and years 
            with alternate valuation date''.
            (H) Section 430(k) of the 1986 Code is amended--
                (i) by inserting ``(as provided under paragraph (2))'' 
            after ``applies'' in paragraph (1), and
                (ii) by striking ``, except'' and all that follows in 
            paragraph (6)(B) and inserting a period.
        (3) Effective dates.--
            (A) In general.--Except as provided in subparagraph (B), 
        the amendments made by paragraphs (1)(A), (1)(F)(i), (2)(A), 
        and (2)(F)(i) shall apply to plan years beginning after 
        December 31, 2008.
            (B) Election for earlier application.--The amendments made 
        by such paragraphs shall apply to a plan for the first plan 
        year beginning after December 31, 2007, if the plan sponsor 
        makes the election under this subparagraph. An election under 
        this subparagraph shall be made at such time and in such manner 
        as the Secretary of the Treasury or the Secretary's delegate 
        may prescribe, and, once made, may be revoked only with the 
        consent of the Secretary.
    (c) Amendments Related to Sections 103 and 113.--
        (1) Amendments to erisa.--
            (A) Section 101(j) of ERISA is amended--
                (i) in paragraph (2), by striking ``section 
            206(g)(4)(B)'' and inserting ``section 206(g)(4)(A)''; and
                (ii) by adding at the end the following: ``The 
            Secretary of the Treasury, in consultation with the 
            Secretary, shall have the authority to prescribe rules 
            applicable to the notices required under this 
            subsection.''.
            (B) Section 206(g)(1)(B)(ii) of ERISA is amended by 
        striking ``a funding'' and inserting ``an adjusted funding''.
            (C) The heading for section 206(g)(1)(C) of ERISA is 
        amended by inserting ``benefit'' after ``event''.
            (D) Section 206(g)(3)(E) of ERISA is amended by adding at 
        the end the following new flush sentence:
        ``Such term shall not include the payment of a benefit which 
        under section 203(e) may be immediately distributed without the 
        consent of the participant.''.
            (E) Section 206(g)(5)(A)(iv) of ERISA is amended by 
        inserting ``adjusted'' before ``funding''.
            (F) Section 206(g)(9)(C) of ERISA is amended--
                (i) by striking ``without regard to this subparagraph 
            and'' in clause (i), and
                (ii) in clause (iii)--

                    (I) by striking ``without regard to this 
                subparagraph'' and inserting ``without regard to the 
                reduction in the value of assets under section 
                303(f)(4)'', and
                    (II) by inserting ``beginning'' before ``after'' 
                each place it appears.

            (G) Section 206(g) of ERISA is amended by redesignating 
        paragraph (10) as paragraph (11) and by inserting after 
        paragraph (9) the following new paragraph:
        ``(10) Secretarial authority for plans with alternate valuation 
    date.--In the case of a plan which has designated a valuation date 
    other than the first day of the plan year, the Secretary of the 
    Treasury may prescribe rules for the application of this subsection 
    which are necessary to reflect the alternate valuation date.''.
            (H) Section 502(c)(4) of ERISA is amended by striking ``by 
        any person'' and all that follows through the period and 
        inserting ``by any person of subsection (j), (k), or (l) of 
        section 101 or section 514(e)(3).''.
        (2) Amendments to 1986 code.--
            (A) Section 436(b)(2) of the 1986 Code is amended--
                (i) by striking ``section 303'' and inserting ``section 
            430'' in the matter preceding subparagraph (A), and
                (ii) by striking ``a funding'' and inserting ``an 
            adjusted funding'' in subparagraph (B).
            (B) Section 436(b)(3) of the 1986 Code is amended--
                (i) by inserting ``benefit'' after ``event'' in the 
            heading, and
                (ii) by striking ``any event'' in subparagraph (B) and 
            inserting ``an event''.
            (C) Section 436(d)(5) of the 1986 Code is amended by adding 
        at the end the following new flush sentence:
    ``Such term shall not include the payment of a benefit which under 
    section 411(a)(11) may be immediately distributed without the 
    consent of the participant.''.
            (D) Section 436(f) of the 1986 Code is amended--
                (i) by inserting ``adjusted'' before ``funding'' in 
            paragraph (1)(D), and
                (ii) by striking ``prefunding balance under section 
            430(f) or funding standard carryover balance'' in paragraph 
            (2) and inserting ``prefunding balance or funding standard 
            carryover balance under section 430(f)''.
            (E) Section 436(j)(3) of the 1986 Code is amended--
                (i) in subparagraph (A)--

                    (I) by striking ``without regard to this paragraph 
                and'',
                    (II) by striking ``section 430(f)(4)(A)'' and 
                inserting ``section 430(f)(4)'', and
                    (III) by striking ``paragraph (1)'' and inserting 
                ``paragraphs (1) and (2)'', and

                (ii) in subparagraph (C)--

                    (I) by striking ``without regard to this 
                paragraph'' and inserting ``without regard to the 
                reduction in the value of assets under section 
                430(f)(4)'', and
                    (II) by inserting ``beginning'' before ``after'' 
                each place it appears.

            (F) Section 436 of the 1986 Code is amended by 
        redesignating subsection (k) as subsection (m) and by inserting 
        after subsection (j) the following new subsections:
    ``(k) Secretarial Authority for Plans With Alternate Valuation 
Date.--In the case of a plan which has designated a valuation date 
other than the first day of the plan year, the Secretary may prescribe 
rules for the application of this section which are necessary to 
reflect the alternate valuation date.
    ``(l) Single-Employer Plan.--For purposes of this section, the term 
`single-employer plan' means a plan which is not a multiemployer 
plan.''.
        (3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and 
    113(b)(2)(A)(ii) of the 2006 Act are each amended--
            (A) by striking ``subsection'' and inserting ``section'', 
        and
            (B) by striking ``subparagraph'' and inserting 
        ``paragraph''.
    (d) Amendments Related to Sections 107 and 114.--
        (1) Amendments to erisa.--
            (A) Section 103(d) of ERISA is amended--
                (i) in paragraph (3), by striking ``the normal costs, 
            the accrued liabilities'' and inserting ``the normal costs 
            or target normal costs, the accrued liabilities or funding 
            target'', and
                (ii) by striking paragraph (7) and inserting the 
            following new paragraph:
        ``(7) A certification of the contribution necessary to reduce 
    the minimum required contribution determined under section 303, or 
    the accumulated funding deficiency determined under section 304, to 
    zero.''.
            (B) Section 4071 of ERISA is amended by striking ``as 
        section 303(k)(4) or 307(e)'' and inserting ``or section 
        303(k)(4),''.
        (2) Amendments to 1986 code.--
            (A) Section 401(a)(29) of the 1986 Code is amended by 
        striking ``on plans in at-risk status'' in the heading.
            (B) Section 401(a)(32)(C) of the 1986 Code is amended--
                (i) by striking ``section 430(j)'' and inserting 
            ``section 430(j)(3)'', and
                (ii) by striking ``paragraph (5)(A)'' and inserting 
            ``section 430(j)(4)(A)''.
            (C) Section 401(a)(33) of the 1986 Code is amended--
                (i) by striking ``section 412(c)(2)'' in subparagraph 
            (B)(iii) and inserting ``section 412(d)(2)'', and
                (ii) by striking ``section 412(b)(2) (without regard to 
            subparagraph (B) thereof)'' in subparagraph (D) and 
            inserting ``section 412(b)(1), without regard to section 
            412(b)(2)''.
            (D) Section 411 of the 1986 Code is amended--
                (i) by striking ``section 412(c)(2)'' in subsection 
            (a)(3)(C) and inserting ``section 412(d)(2)'', and
                (ii) by striking ``section 412(e)(2)'' in subsection 
            (d)(6)(A) and inserting ``section 412(d)(2)''.
            (E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended 
        to read as follows:

                    ``(I) the sum of the funding target and target 
                normal cost determined under section 430, over''.

            (F) Section 4971 of the 1986 Code is amended--
                (i) by striking ``required minimum'' in subsection 
            (b)(1) and inserting ``minimum required'',
                (ii) by inserting ``or unpaid minimum required 
            contribution, whichever is applicable'' after ``accumulated 
            funding deficiency'' each place it appears in subsections 
            (c)(3) and (d)(1), and
                (iii) by striking ``section 412(a)(1)(A)'' in 
            subsection (e)(1) and inserting ``section 412(a)(2)''.
        (3) Amendment to 2006 act.--Section 114 of the 2006 Act is 
    amended by adding at the end the following new subsection:
    ``(g) Effective Dates.--
        ``(1) In general.--The amendments made by this section shall 
    apply to plan years beginning after 2007.
        ``(2) Excise tax.--The amendments made by subsection (e) shall 
    apply to taxable years beginning after 2007, but only with respect 
    to plan years described in paragraph (1) which end with or within 
    any such taxable year.''.
    (e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of 
the 1986 Code is amended by inserting ``to an applicable covered 
employee'' after ``under the plan''.
    SEC. 102. AMENDMENTS RELATED TO TITLE II.
    (a) Amendment Related to Sections 201 and 211.--Section 
201(b)(2)(A) of the 2006 Act is amended by striking ``has not used'' 
and inserting ``has not adopted, or ceased using,''.
    (b) Amendments Related to Sections 202 and 212.--
        (1) Amendments to erisa.--
            (A) Section 302(b)(3) of ERISA is amended by striking ``the 
        plan adopts'' and inserting ``the plan sponsor adopts''.
            (B) Section 305(b)(3)(C) of ERISA is amended by striking 
        ``section 101(b)(4)'' and inserting ``section 101(b)(1)''.
            (C) Section 305(b)(3)(D) of ERISA is amended by striking 
        ``The Secretary'' in clause (iii) and inserting ``The Secretary 
        of the Treasury, in consultation with the Secretary''.
            (D) Section 305(c)(7) of ERISA is amended--
                (i) by striking ``to agree on'' and all that follows in 
            subparagraph (A)(ii) and inserting ``to adopt a 
            contribution schedule with terms consistent with the 
            funding improvement plan and a schedule from the plan 
            sponsor,'', and
                (ii) by striking subparagraph (B) and inserting the 
            following new subparagraph:
            ``(B) Date of implementation.--The date specified in this 
        subparagraph is the date which is 180 days after the date on 
        which the collective bargaining agreement described in 
        subparagraph (A) expires.'', and
                (iii) by adding at the end the following new 
            subparagraph:
            ``(C) Failure to make scheduled contributions.--Any failure 
        to make a contribution under a schedule of contribution rates 
        provided under this paragraph shall be treated as a delinquent 
        contribution under section 515 and shall be enforceable as 
        such.''.
            (E) Section 305(e) of ERISA is amended--
                (i) in paragraph (3)(C)--

                    (I) by striking all that follows ``to adopt a'' in 
                clause (i)(II) and inserting ``to adopt a contribution 
                schedule with terms consistent with the rehabilitation 
                plan and a schedule from the plan sponsor under 
                paragraph (1)(B)(i),'',
                    (II) by striking clause (ii) and inserting the 
                following new clause:

                ``(ii) Date of implementation.--The date specified in 
            this clause is the date which is 180 days after the date on 
            which the collective bargaining agreement described in 
            clause (i) expires.'', and

                    (III) by adding at the end the following new 
                clause:

                ``(iii) Failure to make scheduled contributions.--Any 
            failure to make a contribution under a schedule of 
            contribution rates provided under this subsection shall be 
            treated as a delinquent contribution under section 515 and 
            shall be enforceable as such.'',
                (ii) in paragraph (4)--

                    (I) by striking ``the date of'' in subparagraph 
                (A)(ii), and
                    (II) by striking ``and taking'' in subparagraph (B) 
                and inserting ``but taking'',

                (iii) in paragraph (6)--

                    (I) by striking ``paragraph (1)(B)(i)'' and 
                inserting ``the last sentence of paragraph (1)'', and
                    (II) by striking ``established'' and inserting 
                ``establish'',

                (iv) in paragraph (8)(C)(iii)--

                    (I) by striking ``the Secretary'' in subclause (I) 
                and inserting ``the Secretary of the Treasury, in 
                consultation with the Secretary'', and
                    (II) by striking ``Secretary'' in the last sentence 
                and inserting ``Secretary of the Treasury'', and

                (v) by striking ``an employer's withdrawal liability'' 
            in paragraph (9)(B) and inserting ``the allocation of 
            unfunded vested benefits to an employer''.
            (F) Section 305(f)(2)(A)(i) of ERISA is amended by adding 
        at the end the following: ``to a participant or beneficiary 
        whose annuity starting date (as defined in section 205(h)(2)) 
        occurs after the date such notice is sent,''.
            (G) Section 305(g) of ERISA is amended by inserting ``under 
        subsection (c)'' after ``funding improvement plan'' the first 
        place it appears.
            (H) Section 502(c)(2) of ERISA is amended by striking 
        ``101(b)(4)'' and inserting ``101(b)(1)''.
            (I) Section 502(c)(8)(A) of ERISA is amended by inserting 
        ``plan'' after ``multiemployer''.
        (2) Amendments to 1986 code.--
            (A) Section 432(b)(3)(C) of the 1986 Code is amended by 
        striking ``section 101(b)(4)'' and inserting ``section 
        101(b)(1)''.
            (B) Section 432(b)(3)(D)(iii) of the 1986 Code is amended 
        by striking ``The Secretary of Labor'' and inserting ``The 
        Secretary, in consultation with the Secretary of Labor''.
            (C) Section 432(c) of the 1986 Code is amended--
                (i) in paragraph (3), by striking ``section 304(d)'' in 
            subparagraph (A)(ii) and inserting ``section 431(d)'', and
                (ii) in paragraph (7)--

                    (I) by striking ``to agree on'' and all that 
                follows in subparagraph (A)(ii) and inserting ``to 
                adopt a contribution schedule with terms consistent 
                with the funding improvement plan and a schedule from 
                the plan sponsor,'', and
                    (II) by striking subparagraph (B) and inserting the 
                following new subparagraph:

            ``(B) Date of implementation.--The date specified in this 
        subparagraph is the date which is 180 days after the date on 
        which the collective bargaining agreement described in 
        subparagraph (A) expires.''.
            (D) Section 432(e) of the 1986 Code is amended--
                (i) in paragraph (3)(C)--

                    (I) by striking all that follows ``to adopt a'' in 
                clause (i)(II) and inserting ``to adopt a contribution 
                schedule with terms consistent with the rehabilitation 
                plan and a schedule from the plan sponsor under 
                paragraph (1)(B)(i),'', and
                    (II) by striking clause (ii) and inserting the 
                following new clause:

                ``(ii) Date of implementation.--The date specified in 
            this clause is the date which is 180 days after the date on 
            which the collective bargaining agreement described in 
            clause (i) expires.'',
                (ii) in paragraph (4)--

                    (I) by striking ``the date of'' in subparagraph 
                (A)(ii), and
                    (II) by striking ``and taking'' in subparagraph (B) 
                and inserting ``but taking'',

                (iii) in paragraph (6)--

                    (I) by striking ``paragraph (1)(B)(i)'' and 
                inserting ``the last sentence of paragraph (1)'', and
                    (II) by striking ``established'' and inserting 
                ``establish'',

                (iv) in paragraph (8)--

                    (I) by striking ``section 204(g)'' in subparagraph 
                (A)(i) and inserting ``section 411(d)(6)'',
                    (II) by inserting ``of the Employee Retirement 
                Income Security Act of 1974'' after ``4212(a)'' in 
                subparagraph (C)(i)(II),
                    (III) by striking ``the Secretary of Labor'' in 
                subparagraph (C)(iii)(I) and inserting ``the Secretary, 
                in consultation with the Secretary of Labor'', and
                    (IV) by striking ``the Secretary of Labor'' in the 
                last sentence of subparagraph (C)(iii) and inserting 
                ``the Secretary'', and

                (v) by striking ``an employer's withdrawal liability'' 
            in paragraph (9)(B) and inserting ``the allocation of 
            unfunded vested benefits to an employer''.
            (E) Section 432(f)(2)(A)(i) of the 1986 Code is amended--
                (i) by striking ``section 411(b)(1)(A)'' and inserting 
            ``section 411(a)(9)''; and
                (ii) by inserting at the end the following: ``to a 
            participant or beneficiary whose annuity starting date (as 
            defined in section 417(f)(2)) occurs after the date such 
            notice is sent,''.
            (F) Section 432(g) of the 1986 Code is amended by inserting 
        ``under subsection (c)'' after ``funding improvement plan'' the 
        first place it appears.
            (G) Section 432(i) of the 1986 Code is amended--
                (i) by striking ``section 412(a)'' in paragraph (3) and 
            inserting ``section 431(a)'', and
                (ii) by striking paragraph (9) and inserting the 
            following new paragraph:
        ``(9) Plan sponsor.--For purposes of this section, section 431, 
    and section 4971(g):
            ``(A) In general.--The term `plan sponsor' means, with 
        respect to any multiemployer plan, the association, committee, 
        joint board of trustees, or other similar group of 
        representatives of the parties who establish or maintain the 
        plan.
            ``(B) Special rule for section 404(c) plans.--In the case 
        of a plan described in section 404(c) (or a continuation of 
        such plan), such term means the bargaining parties described in 
        paragraph (1).''.
            (H) Section 412(b)(3) of the 1986 Code is amended by 
        striking ``the plan adopts'' and inserting ``the plan sponsor 
        adopts''.
            (I) Section 4971(g)(4) of the 1986 Code is amended--
                (i) in subparagraph (B)(ii), by striking ``first day 
            of'' and inserting ``day following the close of'', and
                (ii) by striking clause (ii) of subparagraph (C) and 
            inserting the following new clause:
                ``(ii) Plan sponsor.--For purposes of clause (i), the 
            term `plan sponsor' has the meaning given such term by 
            section 432(i)(9).''.
        (3) Amendments to 2006 act.--
            (A) Section 212(b)(2) of the 2006 Act is amended by 
        striking ``Section 4971(c)(2) of such Code'' and inserting 
        ``Section 4971(e)(2) of such Code''.
            (B) Section 212(e)(1) of the 2006 Act is amended by 
        inserting ``, except that the amendments made by subsection (b) 
        shall apply to taxable years beginning after 2007, but only 
        with respect to plan years beginning after 2007 which end with 
        or within any such taxable year'' before the period at the end.
            (C) Section 212(e)(2) of the 2006 Act is amended by 
        striking ``section 305(b)(3) of the Employee Retirement Income 
        Security Act of 1974'' and inserting ``section 432(b)(3) of the 
        Internal Revenue Code of 1986''.
    SEC. 103. AMENDMENTS RELATED TO TITLE III.
    (a) Amendment Related to Section 301.--Clause (ii) of section 
101(c)(2)(A) of the Pension Funding Equity Act of 2004, as amended by 
section 301(c) of the 2006 Act, is amended by striking ``2008'' and 
inserting ``2009''.
    (b) Amendments Related to Section 302.--
        (1) Amendment to erisa.--Section 205(g)(3)(B)(iii)(II) of ERISA 
    is amended by striking ``section 205(g)(3)(B)(iii)(II)'' and 
    inserting ``section 205(g)(3)(A)(ii)(II)''.
        (2) Amendments to 1986 code.--
            (A) Section 417(e)(3)(D)(i) of the 1986 Code is amended by 
        striking ``clause (ii)'' and inserting ``subparagraph (C)''.
            (B)(i) Section 415(b)(2)(E)(v) of the 1986 Code is amended 
        to read as follows:
                ``(v) For purposes of adjusting any benefit or 
            limitation under subparagraph (B), (C), or (D), the 
            mortality table used shall be the applicable mortality 
            table (within the meaning of section 417(e)(3)(B)).''.
            (ii)(I) Except as provided in subclause (II), the amendment 
        made by clause (i) shall apply to years beginning after 
        December 31, 2008.
            (II) A plan sponsor may elect to have the amendment made by 
        clause (i) apply to any year beginning after December 31, 2007, 
        and before January 1, 2009, or to any portion of any such year.
    SEC. 104. AMENDMENTS RELATED TO TITLE IV.
    (a) Amendment Related to Section 401.--Section 4006(a)(3)(A)(i) of 
ERISA is amended by striking ``1990'' and inserting ``2005''.
    (b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the 
2006 Act is amended by striking ``commercial airline'' and inserting 
``commercial''.
    (c) Amendment Related to Section 408.--Section 4044(e) of ERISA, as 
added by section 408(b)(2) of the 2006 Act, is redesignated as 
subsection (f).
    (d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of 
ERISA is amended by striking ``subparagraph (B)'' and inserting 
``subparagraphs (B) and (D)''.
    (e) Amendments Related to Section 410.--Section 4050(d)(4)(A) of 
ERISA is amended--
        (1) by striking ``and'' at the end of clause (i), and
        (2) by striking clause (ii) and inserting the following new 
    clauses:
                ``(ii) which is not a plan described in paragraph (2), 
            (3), (4), (6), (7), (8), (9), (10), or (11) of section 
            4021(b), and
                ``(iii) which, was a plan described in section 401(a) 
            of the Internal Revenue Code of 1986 which includes a trust 
            exempt from tax under section 501(a) of such Code, and''.
    SEC. 105. AMENDMENTS RELATED TO TITLE V.
    (a) Amendment Related to Section 501.--Section 101(f)(2)(B)(ii) of 
ERISA is amended--
        (1) by striking ``for which the latest annual report filed 
    under section 104(a) was filed'' in subclause (I)(aa) and inserting 
    ``to which the notice relates'', and
        (2) by striking subclause (II) and inserting the following new 
    subclause:

                    ``(II) in the case of a multiemployer plan, a 
                statement, for the plan year to which the notice 
                relates and the preceding 2 plan years, of the value of 
                the plan assets (determined both in the same manner as 
                under section 304 and under the rules of subclause 
                (I)(bb)) and the value of the plan liabilities 
                (determined in the same manner as under section 304 
                except that the method specified in section 305(i)(8) 
                shall be used),''.

    (b) Amendments Related to Section 502.--
        (1) Section 101(k)(2) of ERISA is amended by filing at the end 
    the following new flush sentence:
    ``Subparagraph (C)(i) shall not apply to individually identifiable 
    information with respect to any plan investment manager or adviser, 
    or with respect to any other person (other than an employee of the 
    plan) preparing a financial report required to be included under 
    paragraph (1)(B).''.
        (2) Section 4221 of ERISA is amended by striking subsection (e) 
    and by redesignating subsections (f) and (g) as subsections (e) and 
    (f), respectively.
    (c) Amendments Related to Section 503.--
        (1) Amendments to erisa.--
            (A) Section 104(b)(3) of ERISA is amended by--
                (i) striking ``section 103(f)'' and inserting ``section 
            101(f)'', and
                (ii) striking ``the administrators'' and inserting 
            ``the administrator''.
            (B) Section 104(d)(1)(E)(ii) of ERISA is amended by 
        inserting ``funding'' after ``plan's''.
        (2) Amendments to 2006 act.--Section 503(e) of the 2006 Act is 
    amended by striking ``section 101(f)'' and inserting ``section 
    104(d)''.
    (d) Amendment Related to Section 505.--Section 4010(d)(2)(B) of 
ERISA is amended by striking ``section 302(d)(2)'' and inserting 
``section 303(d)(2)''.
    (e) Amendments Related to Section 506.--
        (1) Section 4041(c)(2)(D)(i) of ERISA is amended by striking 
    ``subsection (a)(2)'' the second place it appears and inserting 
    ``subparagraph (A) or the regulations under subsection (a)(2)''.
        (2) Section 4042(c)(3)(C)(i) of ERISA is amended--
            (A) by striking ``and plan sponsor'' and inserting ``, the 
        plan sponsor, or the corporation'', and
            (B) by striking ``subparagraph (A)(i)'' and inserting 
        ``subparagraph (A)''.
    (f) Amendments Related to Section 508.--Section 209(a) of ERISA is 
amended--
        (1) in paragraph (1)--
            (A) by striking ``regulations prescribed by the Secretary'' 
        and inserting ``such regulations as the Secretary may 
        prescribe'', and
            (B) by striking the last sentence and inserting ``The 
        report required under this paragraph shall be in the same form, 
        and contain the same information, as periodic benefit 
        statements under section 105(a).'', and
        (2) by striking paragraph (2) and inserting the following:
        ``(2) If more than one employer adopts a plan, each such 
    employer shall furnish to the plan administrator the information 
    necessary for the administrator to maintain the records, and make 
    the reports, required by paragraph (1). Such administrator shall 
    maintain the records, and make the reports, required by paragraph 
    (1).''.
    (g) Amendment Related to Section 509.--Section 101(i)(8)(B) of 
ERISA is amended to read as follows:
            ``(B) One-participant retirement plan.--For purposes of 
        subparagraph (A), the term `one-participant retirement plan' 
        means a retirement plan that on the first day of the plan 
        year--
                ``(i) covered only one individual (or the individual 
            and the individual's spouse) and the individual (or the 
            individual and the individual's spouse) owned 100 percent 
            of the plan sponsor (whether or not incorporated), or
                ``(ii) covered only one or more partners (or partners 
            and their spouses) in the plan sponsor.''.
    SEC. 106. AMENDMENTS RELATED TO TITLE VI.
    (a) Amendments Related to Section 601.--
        (1) Amendments to erisa.--
            (A) Section 408(g)(3)(D)(ii) of ERISA is amended by 
        striking ``subsection (b)(14)(B)(ii)'' and inserting 
        ``subsection (b)(14)(A)(ii)''.
            (B) Section 408(g)(6)(A)(i) of ERISA is amended by striking 
        ``financial adviser'' and inserting ``fiduciary adviser''.
            (C) Section 408(g)(11)(A) of ERISA is amended--
                (i) by striking ``the participant'' each place it 
            appears and inserting ``a participant'', and
                (ii) by striking ``section 408(b)(4)'' in clause (ii) 
            and inserting ``subsection (b)(4)''.
        (2) Amendments to 1986 code.--
            (A) Section 4975(d)(17) of the 1986 Code, in the matter 
        preceding subparagraph (A), is amended by striking ``and that 
        permits'' and inserting ``that permits''.
            (B) Section 4975(f)(8) of the 1986 Code is amended--
                (i) in subparagraph (A), by striking ``subsection 
            (b)(14)'' and inserting ``subsection (d)(17)'',
                (ii) in subparagraph (C)(iv)(II), by striking 
            ``subsection (b)(14)(B)(ii)'' and inserting 
            ``(d)(17)(A)(ii)'',
                (iii) in subparagraph (F)(i)(I), by striking 
            ``financial adviser'' and inserting ``fiduciary adviser,'',
                (iv) in subparagraph (I), by striking ``section 406'' 
            and inserting ``subsection (c)'', and
                (v) in subparagraph (J)(i)--

                    (I) by striking ``the participant'' each place it 
                appears and inserting ``a participant'',
                    (II) in the matter preceding subclause (I), by 
                inserting ``referred to in subsection (e)(3)(B)'' after 
                ``investment advice'', and
                    (III) in subclause (II), by striking ``section 
                408(b)(4)'' and inserting ``subsection (d)(4)''.

        (3) Amendment to 2006 act.--Section 601(b)(4) of the 2006 Act 
    is amended by striking ``section 4975(c)(3)(B)'' and inserting 
    ``section 4975(e)(3)(B)''.
    (b) Amendments Related to Section 611.--
        (1) Amendment to erisa.--Section 408(b)(18)(C) of ERISA is 
    amended by striking ``or less''.
        (2) Amendments to 1986 code.--Section 4975(d) of the 1986 Code 
    is amended--
            (A) in the matter preceding subparagraph (A) of paragraph 
        (18)--
                (i) by striking ``party in interest'' and inserting 
            ``disqualified person'', and
                (ii) by striking ``subsection (e)(3)(B)'' and inserting 
            ``subsection (e)(3)'',
            (B) in paragraphs (19), (20), and (21), by striking ``party 
        in interest'' each place it appears and inserting 
        ``disqualified person'', and
            (C) by striking ``or less'' in paragraph (21)(C).
    (c) Amendments Related to Section 612.--Section 4975(f)(11)(B)(i) 
of the 1986 Code is amended by--
        (1) inserting ``of the Employee Retirement Income Security Act 
    of 1974'' after ``section 407(d)(1)'', and
        (2) inserting ``of such Act'' after ``section 407(d)(2)''.
    (d) Amendments Related to Section 624.--Section 404(c)(5) of ERISA 
is amended by striking ``participant'' each place it appears and 
inserting ``participant or beneficiary''.
    SEC. 107. AMENDMENTS RELATED TO TITLE VII.
    (a) Amendments to ERISA.--
        (1) Section 203(f)(1)(B) of ERISA is amended to read as 
    follows:
            ``(B) the requirements of section 204(c) or 205(g), or the 
        requirements of subsection (e), with respect to accrued 
        benefits derived from employer contributions,''.
        (2) Section 204(b)(5) of ERISA is amended--
            (A) by striking ``clause'' in subparagraph (A)(iii) and 
        inserting ``subparagraph'', and
            (B) by inserting ``otherwise'' before ``allowable'' in 
        subparagraph (C).
        (3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is 
    amended to read as follows:

                    ``(II) Preservation of capital.--An applicable 
                defined benefit plan shall be treated as failing to 
                meet the requirements of paragraph (1)(H) unless the 
                plan provides that an interest credit (or equivalent 
                amount) of less than zero shall in no event result in 
                the account balance or similar amount being less than 
                the aggregate amount of contributions credited to the 
                account.''.

    (b) Amendments to 1986 Code.--
        (1) Section 411(b)(5) of the 1986 Code is amended--
            (A) by striking ``clause'' in subparagraph (A)(iii) and 
        inserting ``subparagraph'', and
            (B) by inserting ``otherwise'' before ``allowable'' in 
        subparagraph (C).
        (2) Section 411(a)(13)(A) of the 1986 Code is amended--
            (A) by striking ``paragraph (2)'' in clause (i) and 
        inserting ``subparagraph (B)'',
            (B) by striking clause (ii) and inserting the following new 
        clause:
                ``(ii) the requirements of subsection (a)(11) or (c), 
            or the requirements of section 417(e), with respect to 
            accrued benefits derived from employer contributions,'', 
            and
            (C) by striking ``paragraph (3)'' in the matter following 
        clause (ii) and inserting ``subparagraph (C)''.
        (3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986 Code 
    is amended to read as follows:

                    ``(II) Preservation of capital.--An applicable 
                defined benefit plan shall be treated as failing to 
                meet the requirements of paragraph (1)(H) unless the 
                plan provides that an interest credit (or equivalent 
                amount) of less than zero shall in no event result in 
                the account balance or similar amount being less than 
                the aggregate amount of contributions credited to the 
                account.''.

    (c) Amendments to 2006 Act.--
        (1) Section 701(d)(2) of the 2006 Act is amended by striking 
    ``204(g)'' and inserting ``205(g)''.
        (2) Section 701(e) of the 2006 Act is amended--
            (A) by inserting ``on or'' after ``period'' in paragraph 
        (3),
            (B) in paragraph (4)--
                (i) by inserting ``the earlier of'' after ``before'' in 
            the matter preceding subparagraph (A), and
                (ii) by striking ``earlier'' and inserting ``later'' in 
            subparagraph (A),
            (C) by inserting ``on or'' before ``after'' each place it 
        appears in paragraph (5), and
            (D) by adding at the end the following new paragraph:
        ``(6) Special rule for vesting requirements.--The requirements 
    of section 203(f)(2) of the Employee Retirement Income Security Act 
    of 1974 and section 411(a)(13)(B) of the Internal Revenue Code of 
    1986 (as added by this Act)--
            ``(A) shall not apply to a participant who does not have an 
        hour of service after the effective date of such requirements 
        (as otherwise determined under this subsection); and
            ``(B) in the case of a plan other than a plan described in 
        paragraph (3) or (4), shall apply to plan years ending on or 
        after June 29, 2005.''.
    SEC. 108. AMENDMENTS RELATED TO TITLE VIII.
    (a) Amendments Related to Section 801.--
        (1) Section 404(o) of the 1986 Code is amended--
            (A) by striking ``430(g)(2)'' in paragraph (2)(A)(ii) and 
        inserting ``430(g)(3)'', and
            (B) by striking ``412(f)(4)'' in paragraph (4)(B) and 
        inserting ``412(d)(3)''.
        (2) Section 404(a)(7)(A) of the 1986 Code is amended--
            (A) by striking the next to last sentence, and
            (B) by striking ``the plan's funding shortfall determined 
        under section 430'' in the last sentence and inserting ``the 
        excess (if any) of the plan's funding target (as defined in 
        section 430(d)(1)) over the value of the plan's assets (as 
        determined under section 430(g)(3))''.
    (b) Amendment Related to Section 802.--Section 404(a)(1)(D)(i) of 
the 1986 Code is amended by striking ``431(c)(6)(C)'' and inserting 
``431(c)(6)(D)''.
    (c) Amendment Related to Section 803.--Clause (iii) of section 
404(a)(7)(C) of the 1986 Code is amended to read as follows:
                ``(iii) Limitation.--In the case of employer 
            contributions to 1 or more defined contribution plans--

                    ``(I) if such contributions do not exceed 6 percent 
                of the compensation otherwise paid or accrued during 
                the taxable year to the beneficiaries under such plans, 
                this paragraph shall not apply to such contributions or 
                to employer contributions to the defined benefit plans 
                to which this paragraph would otherwise apply by reason 
                of contributions to the defined contribution plans, and
                    ``(II) if such contributions exceed 6 percent of 
                such compensation, this paragraph shall be applied by 
                only taking into account such contributions to the 
                extent of such excess.

            For purposes of this clause, amounts carried over from 
            preceding taxable years under subparagraph (B) shall be 
            treated as employer contributions to 1 or more defined 
            contributions plans to the extent attributable to employer 
            contributions to such plans in such preceding taxable 
            years.''.
    (d) Amendments Related to Section 824.--
        (1) Section 408A(c)(3)(B) of the 1986 Code, as in effect after 
    the amendments made by section 824(b)(1) of the 2006 Act, is 
    amended--
            (A) by striking the second ``an'' before ``eligible'',
            (B) by striking ``other than a Roth IRA'', and
            (C) by adding at the end the following new flush sentence:
        ``This subparagraph shall not apply to a qualified rollover 
        contribution from a Roth IRA or to a qualified rollover 
        contribution from a designated Roth account which is a rollover 
        contribution described in section 402A(c)(3)(A).''
        (2) Section 408A(d)(3)(B), as in effect after the amendments 
    made by section 824(b)(2)(B) of the 2006 Act, is amended by 
    striking ``(other than a Roth IRA)'' and by inserting at the end 
    the following new sentence: ``This paragraph shall not apply to a 
    distribution which is a qualified rollover contribution from a Roth 
    IRA or a qualified rollover contribution from a designated Roth 
    account which is a rollover contribution described in section 
    402A(c)(3)(A)''.
    (e) Amendment to Section 827.--The first sentence of section 
72(t)(2)(G)(iv) of the 1986 Code is amended by inserting ``on or'' 
before ``before''.
    (f) Amendments Related to Section 829.--
        (1) Section 402(c)(11) of the 1986 Code is amended--
            (A) by inserting ``described in paragraph (8)(B)(iii)'' 
        after ``eligible retirement plan'' in subparagraph (A), and
            (B) by striking ``trust'' before ``designated beneficiary'' 
        in subparagraph (B).
        (2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by 
    adding at the end the following new sentence: ``Such term shall 
    include any distribution to a designated beneficiary which would be 
    treated as an eligible rollover distribution by reason of 
    subsection (c)(11), or section 403(a)(4)(B), 403(b)(8)(B), or 
    457(e)(16)(B), if the requirements of subsection (c)(11) were 
    satisfied.''
        (B) Clause (i) of section 402(c)(11)(A) of the 1986 Code is 
    amended by striking ``for purposes of this subsection''.
        (C) The amendments made by this paragraph shall apply with 
    respect to plan years beginning after December 31, 2009.
    (g) Amendment Related to Section 832.--Section 415(f) of the 1986 
Code is amended by striking paragraph (2) and by redesignating 
paragraph (3) as paragraph (2).
    (h) Amendments Related to Section 833.--
        (1) Section 408A(c)(3)(C) of the 1986 Code, as added by section 
    833(c) of the 2006 Act, is redesignated as subparagraph (E).
        (2) In the case of taxable years beginning after December 31, 
    2009, section 408A(c)(3)(E) of the 1986 Code (as redesignated by 
    paragraph (1))--
            (A) is redesignated as subparagraph (D), and
            (B) is amended by striking ``subparagraph (C)(ii)'' and 
        inserting ``subparagraph (B)(ii)''.
    (i) Amendments Related to Section 841.--
        (1) Section 420(c)(1)(A) of the 1986 Code is amended by adding 
    at the end the following new sentence: ``In the case of a qualified 
    future transfer or collectively bargained transfer to which 
    subsection (f) applies, any assets so transferred may also be used 
    to pay liabilities described in subsection (f)(2)(C).''
        (2) Section 420(f)(2) of the 1986 Code is amended by striking 
    ``such'' before ``the applicable'' in subparagraph (D)(i)(I).
        (3) Section 4980(c)(2)(B) of the 1986 Code is amended by 
    striking ``or'' at the end of clause (i), by striking the period at 
    the end of clause (ii) and inserting ``, or'', and by adding at the 
    end the following new clause:
                ``(iii) any transfer described in section 
            420(f)(2)(B)(ii)(II).''.
    (j) Amendments Related to Section 845.--
        (1) Subsection (l) of section 402 of the 1986 Code is amended--
            (A) in paragraph (1)--
                (i) by inserting ``maintained by the employer described 
            in paragraph (4)(B)'' after ``an eligible retirement 
            plan'', and
                (ii) by striking ``of the employee, his spouse, or 
            dependents (as defined in section 152)'' ,
            (B) in paragraph (4)(D), by--
                (i) inserting ``(as defined in section 152)'' after 
            ``dependents'', and
                (ii) striking ``health insurance plan'' and inserting 
            ``health plan'', and
            (C) in paragraph (5)(A), by striking ``health insurance 
        plan'' and inserting ``health plan''.
        (2) Subparagraph (B) of section 402(l)(3) of the 1986 Code is 
    amended by striking ``all amounts distributed from all eligible 
    retirement plans were treated as 1 contract for purposes of 
    determining the inclusion of such distribution under section 72'' 
    and inserting ``all amounts to the credit of the eligible public 
    safety officer in all eligible retirement plans maintained by the 
    employer described in paragraph (4)(B) were distributed during such 
    taxable year and all such plans were treated as 1 contract for 
    purposes of determining under section 72 the aggregate amount which 
    would have been so includible''.
    (k) Amendments Related to Section 854.--
        (1) Section 3121(b)(5)(E) of the 1986 Code is amended by 
    striking ``or special trial judge''.
        (2) Section 210(a)(5)(E) of the Social Security Act is amended 
    by striking ``or special trial judge''.
    (l) Amendments Related to Section 856.--Section 856 of the 2006 
Act, and the amendments made by such section, are hereby repealed, and 
the Internal Revenue Code of 1986 shall be applied and administered as 
if such sections and amendments had not been enacted.
    (m) Amendment Related to Section 864.--Section 864(a) of the 2006 
Act is amended by striking ``Reconciliation''.
    SEC. 109. AMENDMENTS RELATED TO TITLE IX.
    (a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of 
the 1986 Code is amended to read as follows:
                ``(iv) One-participant retirement plan.--For purposes 
            of clause (iii), the term `one-participant retirement plan' 
            means a retirement plan that on the first day of the plan 
            year--

                    ``(I) covered only one individual (or the 
                individual and the individual's spouse) and the 
                individual (or the individual and the individual's 
                spouse) owned 100 percent of the plan sponsor (whether 
                or not incorporated), or
                    ``(II) covered only one or more partners (or 
                partners and their spouses) in the plan sponsor.''.

    (b) Amendments Related to Section 902.--
        (1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended by 
    striking ``such compensation as exceeds 1 percent but does not'' 
    and inserting ``such contributions as exceed 1 percent but do 
    not''.
        (2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code are 
    each amended--
            (A) by striking ``an erroneous automatic contribution'' and 
        inserting ``a permissible withdrawal'', and
            (B) by striking ``erroneous automatic contribution'' in the 
        heading and inserting ``permissible withdrawal''.
        (3) Section 402(g)(2)(A)(ii) of the 1986 Code is amended by 
    inserting ``through the end of such taxable year'' after ``such 
    amount''.
        (4) Section 414(w)(3) of the 1986 Code is amended--
            (A) in subparagraph (B), by inserting ``and'' after the 
        comma at the end,
            (B) by striking subparagraph (C), and
            (C) by redesignating subparagraph (D) as subparagraph (C).
        (5) Section 414(w)(5) of the 1986 Code is amended by striking 
    ``and'' at the end of subparagraph (B), by striking the period at 
    the end of subparagraph (C) and inserting a comma, and by adding at 
    the end the following:
            ``(D) a simplified employee pension the terms of which 
        provide for a salary reduction arrangement described in section 
        408(k)(6), and
            ``(E) a simple retirement account (as defined in section 
        408(p)).''.
        (6) Section 414(w)(6) of the 1986 Code is amended by inserting 
    ``or for purposes of applying the limitation under section 
    402(g)(1)'' before the period at the end.
    (c) Amendments Related to Section 903.--
        (1) Amendment of 1986 code.--Section 414(x)(1) of the 1986 Code 
    is amended by adding at the end of paragraph (1) the following new 
    sentence: ``In the case of a termination of the defined benefit 
    plan and the applicable defined contribution plan forming part of 
    an eligible combined plan, the plan administrator shall terminate 
    each such plan separately.''
        (2) Amendments of erisa.--Section 210(e) of ERISA is amended--
            (A) by adding at the end of paragraph (1) the following new 
        sentence: ``In the case of a termination of the defined benefit 
        plan and the applicable defined contribution plan forming part 
        of an eligible combined plan, the plan administrator shall 
        terminate each such plan separately.'', and
            (B) by striking paragraph (3) and by redesignating 
        paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), 
        respectively.
    (d) Amendments Related to Section 906.--
        (1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by 
    striking ``paragraph (1)'' and inserting ``paragraph (10)''.
        (2) Section 4021(b) of ERISA is amended by inserting ``or'' at 
    the end of paragraph (12), by striking ``; or'' at the end of 
    paragraph (13) and inserting a period, and by striking paragraph 
    (14).
    SEC. 110. AMENDMENTS RELATED TO TITLE X.
    (a) Amendments to Railroad Retirement Act.--
        (1) Section 14(b) of the Railroad Retirement Act of 1974 (45 
    U.S.C. 231m(b)) is amended by adding at the end the following:
        ``(3)(A) Payments made pursuant to paragraph (2) of this 
    subsection shall not require that the employee be entitled to an 
    annuity under section 2(a)(1) of this Act: Provided, however, That 
    where an employee is not entitled to such an annuity, payments made 
    pursuant to paragraph (2) may not begin before the month in which 
    the following three conditions are satisfied:
            ``(i) The employee has completed ten years of service in 
        the railroad industry or, five years of service all of which 
        accrues after December 31, 1995.
            ``(ii) The spouse or former spouse attains age 62.
            ``(iii) The employee attains age 62 (or if deceased, would 
        have attained age 62).
        ``(B) Payments made pursuant to paragraph (2) of this 
    subsection shall terminate upon the death of the spouse or former 
    spouse, unless the court document provides for termination at an 
    earlier date. Notwithstanding the language in a court order, that 
    portion of payments made pursuant to paragraph (2) which represents 
    payments computed pursuant to section 3(f)(2) of this Act shall not 
    be paid after the death of the employee.
        ``(C) If the employee is not entitled to an annuity under 
    section 2(a)(1) of this Act, payments made pursuant to paragraph 
    (2) of this subsection shall be computed as though the employee 
    were entitled to an annuity.''.
        (2) Subsection (d) of section 5 of the Railroad Retirement Act 
    (45 U.S.C. 231d) is repealed.
    (b) Effective Dates.--
        (1) Subsection (a)(1).--The amendment made by subsection (a)(1) 
    shall apply with respect to payments due for months after August 
    2007. If, prior to the effective date of such amendment, payment 
    pursuant to paragraph (2) of section 14(b) of the Railroad 
    Retirement Act of 1974 (45 U.S.C. 231m(b)) was terminated because 
    of the employee's death, payment to the former spouse may be 
    reinstated for months after August 2007.
        (2) Subsection (a)(2).--The amendment made by subsection (a)(2) 
    shall take effect upon the date of the enactment of this Act.
    SEC. 111. AMENDMENTS RELATED TO TITLE XI.
    (a) Amendment Related to Section 1104.--Section 1104(d)(1) of the 
2006 Act is amended by striking ``Act'' the first place it appears and 
inserting ``section''.
    (b) Amendments Related to Section 1105.--Section 3304(a) of the 
1986 Code is amended--
        (1) in paragraph (15)--
            (A) by redesignating clauses (i) and (ii) of subparagraph 
        (A) as subclauses (I) and (II),
            (B) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii),
            (C) by striking the semicolon at the end of clause (ii) (as 
        so redesignated) and inserting ``, and'',
            (D) by striking ``(15)'' and inserting ``(15)(A) subject to 
        subparagraph (B),'', and
            (E) by adding at the end the following:
            ``(B) the amount of compensation shall not be reduced on 
        account of any payments of governmental or other pensions, 
        retirement or retired pay, annuity, or other similar payments 
        which are not includible in the gross income of the individual 
        for the taxable year in which it was paid because it was part 
        of a rollover distribution;'', and
        (2) by striking the last sentence.
    (c) Amendments Related to Section 1106.--Section 3(37)(G) of ERISA 
is amended by--
        (1) striking ``paragraph'' each place it appears in clauses 
    (ii), (iii), and (v)(I) and inserting ``subparagraph'',
        (2) striking ``subclause (i)(II)'' in clause (iii) and 
    inserting ``clause (i)(II)'',
        (3) striking ``subparagraph'' in clause (v)(II) and inserting 
    ``clause'', and
        (4) by striking ``section 101(b)(4)'' in clause (v)(III) and 
    inserting ``section 101(b)(1)''.
    SEC. 112. EFFECTIVE DATE.
    Except as otherwise provided in this subtitle, the amendments made 
by this subtitle shall take effect as if included in the provisions of 
the 2006 Act to which the amendments relate.

                      Subtitle B--Other Provisions

    SEC. 121. AMENDMENTS RELATED TO SECTIONS 102 AND 112 OF THE PENSION 
      PROTECTION ACT OF 2006.
    (a) Amendment of ERISA.--The last sentence of section 303(g)(3)(B) 
of ERISA is amended to read as follows: ``Any such averaging shall be 
adjusted for contributions, distributions, and expected earnings (as 
determined by the plan's actuary on the basis of an assumed earnings 
rate specified by the actuary but not in excess of the third segment 
rate applicable under subsection (h)(2)(C)(iii)), as specified by the 
Secretary of the Treasury.''.
    (b) Amendment of 1986 Code.--The last sentence of section 
430(g)(3)(B) of the 1986 Code is amended to read as follows: ``Any such 
averaging shall be adjusted for contributions, distributions, and 
expected earnings (as determined by the plan's actuary on the basis of 
an assumed earnings rate specified by the actuary but not in excess of 
the third segment rate applicable under subsection (h)(2)(C)(iii)), as 
specified by the Secretary.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the 2006 Act to which the 
amendments relate.
    SEC. 122. MODIFICATION OF INTEREST RATE ASSUMPTION REQUIRED WITH 
      RESPECT TO CERTAIN SMALL EMPLOYER PLANS.
    (a) In General.--Subparagraph (E) of section 415(b)(2) of the 1986 
Code (relating to limitation on certain assumptions) is amended by 
adding at the end the following new clause:
                ``(vi) In the case of a plan maintained by an eligible 
            employer (as defined in section 408(p)(2)(C)(i)), clause 
            (ii) shall be applied without regard to subclause (II) 
            thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 2008.
    SEC. 123. DETERMINATION OF MARKET RATE OF RETURN FOR GOVERNMENTAL 
      PLANS.
    (a) Amendment of ADEA.--Section 4(i)(10)(B)(i)(III) of the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 
623(i)(10)(B)(i)(III)) is amended by adding at the end the following: 
``In the case of a governmental plan (as defined in the first sentence 
of section 414(d) of the Internal Revenue Code of 1986), a rate of 
return or a method of crediting interest established pursuant to any 
provision of Federal, State, or local law (including any administrative 
rule or policy adopted in accordance with any such law) shall be 
treated as a market rate of return for purposes of subclause (I) and a 
permissible method of crediting interest for purposes of meeting the 
requirements of subclause (I), except that this sentence shall only 
apply to a rate of return or method of crediting interest if such rate 
or method does not violate any other requirement of this Act.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provisions of the Pension Protection Act 
of 2006 to which such amendment relates.
    SEC. 124. TREATMENT OF CERTAIN REIMBURSEMENTS FROM GOVERNMENTAL 
      PLANS FOR MEDICAL CARE.
    (a) In General.--Section 105 of the 1986 Code (relating to amounts 
received under accident and health plans) is amended by adding at the 
end the following new subsection:
    ``(j) Special Rule for Certain Governmental Plans.--
        ``(1) In general.--For purposes of subsection (b), amounts paid 
    (directly or indirectly) to the taxpayer from an accident or health 
    plan described in paragraph (2) shall not fail to be excluded from 
    gross income solely because such plan, on or before January 1, 
    2008, provides for reimbursements of health care expenses of a 
    deceased plan participant's beneficiary.
        ``(2) Plan described.--An accident or health plan is described 
    in this paragraph if such plan is funded by a medical trust that is 
    established in connection with a public retirement system and 
    that--
            ``(A) has been authorized by a State legislature, or
            ``(B) has received a favorable ruling from the Internal 
        Revenue Service that the trust's income is not includible in 
        gross income under section 115.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments before, on, or after the date of the enactment of 
this Act.
    SEC. 125. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 
      BANKRUPTCY TO ROTH IRAS.
    (a) General Rule.--If a qualified airline employee receives any 
airline payment amount and transfers any portion of such amount to a 
Roth IRA within 180 days of receipt of such amount (or, if later, 
within 180 days of the date of the enactment of this Act), then such 
amount (to the extent so transferred) shall be treated as a qualified 
rollover contribution described in section 408A(e) of the Internal 
Revenue Code of 1986, and the limitations described in section 
408A(c)(3) of such Code shall not apply to any such transfer.
    (b) Definitions and Special Rules.--For purposes of this section--
        (1) Airline payment amount.--
            (A) In general.--The term ``airline payment amount'' means 
        any payment of any money or other property which is payable by 
        a commercial passenger airline carrier to a qualified airline 
        employee--
                (i) under the approval of an order of a Federal 
            bankruptcy court in a case filed after September 11, 2001, 
            and before January 1, 2007, and
                (ii) in respect of the qualified airline employee's 
            interest in a bankruptcy claim against the carrier, any 
            note of the carrier (or amount paid in lieu of a note being 
            issued), or any other fixed obligation of the carrier to 
            pay a lump sum amount.
        The amount of such payment shall be determined without regard 
        to any requirement to deduct and withhold tax from such payment 
        under sections 3102(a) and 3402(a).
            (B) Exception.--An airline payment amount shall not include 
        any amount payable on the basis of the carrier's future 
        earnings or profits.
        (2) Qualified airline employee.--The term ``qualified airline 
    employee'' means an employee or former employee of a commercial 
    passenger airline carrier who was a participant in a defined 
    benefit plan maintained by the carrier which--
            (A) is a plan described in section 401(a) of the Internal 
        Revenue Code of 1986 which includes a trust exempt from tax 
        under section 501(a) of such Code, and
            (B) was terminated or became subject to the restrictions 
        contained in paragraphs (2) and (3) of section 402(b) of the 
        Pension Protection Act of 2006.
        (3) Reporting requirements.--If a commercial passenger airline 
    carrier pays 1 or more airline payment amounts, the carrier shall, 
    within 90 days of such payment (or, if later, within 90 days of the 
    date of the enactment of this Act), report--
            (A) to the Secretary of the Treasury, the names of the 
        qualified airline employees to whom such amounts were paid, and
            (B) to the Secretary and to such employees, the years and 
        the amounts of the payments.
    Such reports shall be in such form, and contain such additional 
    information, as the Secretary may prescribe.
    (c) Effective Date.--This section shall apply to transfers made 
after the date of the enactment of this Act with respect to airline 
payment amounts paid before, on, or after such date.
    SEC. 126. DETERMINATION OF ASSET VALUE FOR SPECIAL AIRLINE FUNDING 
      RULES.
    (a) In General.--Section 402(e)(4)(C) of the 2006 Act is amended to 
read as follows:
            ``(C) the value of plan assets shall be determined under 
        sections 303(g)(3) of such Act and 430(g)(3) of such Code.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 2007.
    SEC. 127. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
      RETURNS.
    (a) In General.--Section 6698(b)(1) of the 1986 Code is amended by 
striking ``$85'' and inserting ``$89''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to returns required to be filed after December 31, 2008.
    SEC. 128. MODIFICATION OF PENALTY FOR FAILURE TO FILE S CORPORATION 
      RETURNS.
    (a) In General.--Section 6699(b)(1) of the 1986 Code is amended by 
striking ``$85'' and inserting ``$89''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to returns required to be filed after December 31, 2008.

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

    SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES 
      FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.
    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986 (relating to required distributions) is amended by adding at the 
end the following new subparagraph:
            ``(H) Temporary waiver of minimum required distribution.--
                ``(i) In general.--The requirements of this paragraph 
            shall not apply for calendar year 2009 to--

                    ``(I) a defined contribution plan which is 
                described in this subsection or in section 403(a) or 
                403(b),
                    ``(II) a defined contribution plan which is an 
                eligible deferred compensation plan described in 
                section 457(b) but only if such plan is maintained by 
                an employer described in section 457(e)(1)(A), or
                    ``(III) an individual retirement plan.

                ``(ii) Special rules regarding waiver period.--For 
            purposes of this paragraph--

                    ``(I) the required beginning date with respect to 
                any individual shall be determined without regard to 
                this subparagraph for purposes of applying this 
                paragraph for calendar years after 2009, and
                    ``(II) if clause (ii) of subparagraph (B) applies, 
                the 5-year period described in such clause shall be 
                determined without regard to calendar year 2009.''.

    (b) Eligible Rollover Distributions.--Section 402(c)(4) of the 
Internal Revenue Code of 1986 (defining eligible rollover distribution) 
is amended by adding at the end the following new flush sentence:
    ``If all or any portion of a distribution during 2009 is treated as 
    an eligible rollover distribution but would not be so treated if 
    the minimum distribution requirements under section 401(a)(9) had 
    applied during 2009, such distribution shall not be treated as an 
    eligible rollover distribution for purposes of section 401(a)(31) 
    or 3405(c) or subsection (f) of this section.''.
    (c) Effective Dates.--
        (1) In general.--The amendments made by this section shall 
    apply for calendar years beginning after December 31, 2008.
        (2) Provisions relating to plan or contract amendments.--
            (A) In general.--If this paragraph applies to any pension 
        plan or contract amendment, such pension plan or contract shall 
        not fail to be treated as being operated in accordance with the 
        terms of the plan during the period described in subparagraph 
        (B)(ii) solely because the plan operates in accordance with 
        this section.
            (B) Amendments to which paragraph applies.--
                (i) In general.--This paragraph shall apply to any 
            amendment to any pension plan or annuity contract which--

                    (I) is made pursuant to the amendments made by this 
                section, and
                    (II) is made on or before the last day of the first 
                plan year beginning on or after January 1, 2011.

            In the case of a governmental plan, subclause (II) shall be 
            applied by substituting ``2012'' for ``2011''.
                (ii) Conditions.--This paragraph shall not apply to any 
            amendment unless during the period beginning on the 
            effective date of the amendment and ending on December 31, 
            2009, the plan or contract is operated as if such plan or 
            contract amendment were in effect.
    SEC. 202. TRANSITION RULE CLARIFICATION.
    (a) Amendment to ERISA.--Subparagraph (B) of section 303(c)(5) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1083(c)(5)) is amended--
        (1) by striking clause (iii) and redesignating clause (iv) as 
    clause (iii); and
        (2) by striking clause (i) and inserting the following:
                ``(i) In general.--Except as provided in clause (iii), 
            in the case of plan years beginning after 2007 and before 
            2011, only the applicable percentage of the funding target 
            shall be taken into account under paragraph (3)(A) in 
            determining the funding shortfall for purposes of paragraph 
            (3)(A) and subparagraph (A).''.
    (b) Amendment to 1986 Code.--Subparagraph (B) of section 430(c)(5) 
of the Internal Revenue Code of 1986 is amended--
        (1) by striking clause (iii) and redesignating clause (iv) as 
    clause (iii); and
        (2) by striking clause (i) and inserting the following:
                ``(i) In general.--Except as provided in clause (iii), 
            in the case of plan years beginning after 2007 and before 
            2011, only the applicable percentage of the funding target 
            shall be taken into account under paragraph (3)(A) in 
            determining the funding shortfall for purposes of paragraph 
            (3)(A) and subparagraph (A).''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 102 and 112, 
respectively, of the Pension Protection Act of 2006.
    SEC. 203. TEMPORARY MODIFICATION OF APPLICATION OF LIMITATION ON 
      BENEFIT ACCRUALS.
    In the case of the first plan year beginning during the period 
beginning on October 1, 2008, and ending on September 30, 2009, 
sections 206(g)(4)(A) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue 
Code of 1986 shall be applied by substituting the plan's adjusted 
funding target attainment percentage for the preceding plan year for 
such percentage for such plan year but only if the adjusted funding 
target attainment percentage for the preceding plan year is greater.
    SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS 
      IN ENDANGERED OR CRITICAL STATUS.
    (a) In General.--Notwithstanding the actuarial certification under 
section 305(b)(3) of the Employee Retirement Income Security Act of 
1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a 
plan sponsor of a multiemployer plan elects the application of this 
section, then, for purposes of section 305 of such Act and section 432 
of such Code--
        (1) the status of the plan for its first plan year beginning 
    during the period beginning on October 1, 2008, and ending on 
    September 30, 2009, shall be the same as the status of such plan 
    under such sections for the plan year preceding such plan year, and
        (2) in the case of a plan which was in endangered or critical 
    status for the preceding plan year described in paragraph (1), the 
    plan shall not be required to update its plan or schedules under 
    section 305(c)(6) of such Act and section 432(c)(6) of such Code, 
    or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of 
    such Code, whichever is applicable, until the plan year following 
    the first plan year described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 1986 did not apply to 
the preceding plan year described in paragraph (1), the plan actuary 
shall make a certification of the status of the plan under section 
305(b)(3) of such Act and section 432(b)(3) of such Code for the 
preceding plan year in the same manner as if such sections had applied 
to such preceding plan year.
    (b) Exception for Plans Becoming Critical During Election.--If--
        (1) an election was made under subsection (a) with respect to a 
    multiemployer plan, and
        (2) such plan has, without regard to such election, been 
    certified by the plan actuary under section 305(b)(3) of such Act 
    and section 432(b)(3) of such Code to be in critical status for the 
    first plan year described in subsection (a)(1),
then such plan shall be treated as a plan in critical status for such 
plan year for purposes of applying section 4971(g)(1)(A) of such Code, 
section 302(b)(3) of such Act (without regard to the second sentence 
thereof), and section 412(b)(3) of such Code (without regard to the 
second sentence thereof).
    (c) Election and Notice.--
        (1) Election.--An election under subsection (a) shall--
            (A) be made at such time and in such manner as the 
        Secretary of the Treasury or the Secretary's delegate may 
        prescribe and, once made, may be revoked only with the consent 
        of the Secretary, and
            (B) if the election is made--
                (i) before the date the annual certification is 
            submitted to the Secretary or the Secretary's delegate 
            under section 305(b)(3) of such Act and section 432(b)(3) 
            of such Code, be included with such annual certification, 
            and
                (ii) after such date, be submitted to the Secretary or 
            the Secretary's delegate not later than 30 days after the 
            date of the election.
        (2) Notice to participants.--
            (A) In general.--Notwithstanding section 305(b)(3)(D) of 
        such Act and section 431(b)(3)(D) of such Code, if the plan is 
        neither in endangered nor critical status by reason of an 
        election made under subsection (a)--
                (i) the plan sponsor of a multiemployer plan shall not 
            be required to provide notice under such sections, and
                (ii) the plan sponsor shall provide to the participants 
            and beneficiaries, the bargaining parties, the Pension 
            Benefit Guaranty Corporation, and the Secretary of Labor a 
            notice of the election and such other information as the 
            Secretary of the Treasury (in consultation with the 
            Secretary of Labor) may require--

                    (I) if the election is made before the date the 
                annual certification is submitted to the Secretary or 
                the Secretary's delegate under section 305(b)(3) of 
                such Act and section 432(b)(3) of such Code, not later 
                than 30 days after the date of the certification, and
                    (II) if the election is made after such date, not 
                later than 30 days after the date of the election.

            (B) Notice of endangered status.--Notwithstanding section 
        305(b)(3)(D) of such Act and section 431(b)(3)(D) of such Code, 
        if the plan is certified to be in critical status for any plan 
        year but is in endangered status by reason of an election made 
        under subsection (a), the notice provided under such sections 
        shall be the notice which would have been provided if the plan 
        had been certified to be in endangered status.
    SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND 
      REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN 
      CRITICAL AND ENDANGERED STATUS FOR 2008 OR 2009.
    (a) In General.--If the plan sponsor of a multiemployer plan which 
is in endangered or critical status for a plan year beginning in 2008 
or 2009 (determined after application of section 204) elects the 
application of this section, then, for purposes of section 305 of the 
Employee Retirement Income Security Act of 1974 and section 432 of the 
Internal Revenue Code of 1986--
        (1) except as provided in paragraph (2), the plan's funding 
    improvement period or rehabilitation period, whichever is 
    applicable, shall be 13 years rather than 10 years, and
        (2) in the case of a plan in seriously endangered status, the 
    plan's funding improvement period shall be 18 years rather than 15 
    years.
    (b) Definitions and Special Rules.--For purposes of this section--
        (1) Election.--An election under this section shall be made at 
    such time, and in such manner and form, as (in consultation with 
    the Secretary of Labor) the Secretary of the Treasury or the 
    Secretary's delegate may prescribe.
        (2) Definitions.--Any term which is used in this section which 
    is also used in section 305 of the Employee Retirement Income 
    Security Act of 1974 and section 432 of the Internal Revenue Code 
    of 1986 shall have the same meaning as when used in such sections.
    (c) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2007.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.