1.This Act may be cited as
the Restoring Pension Promises to
Workers Act
.
<enum>I</enum><header>Amendments to the
Employee Retirement Income Security Act of 1974 and the Internal Revenue Code
of 1986</header>
<section id="id999845FFD7D445848AE8D79DEF1CE50C"><enum>101.</enum><header>No exclusion
for compensation under nonqualified deferred compensation plans unless employer
maintains qualified employer plan</header>
<subsection id="id4EB9540F6F664D3CB38CF32580D9FEF7"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 409A(a) of the Internal Revenue
Code of 1986 (relating to inclusion in gross income of deferred compensation
under nonqualified deferred compensation plans) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A)
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idA89DB5522B0346829CE675A54B80D1A6" style="OLC">
<subparagraph id="id0B673B510146431E9E2715F677A5211D"><enum>(B)</enum><header>Gross income
inclusion for employer failures</header><text>If at any time during a taxable
year an employer maintaining a nonqualified deferred compensation plan fails to
meet the requirements of subsection (e), all compensation deferred under the
plan for the taxable year and all preceding taxable years shall be includible
in gross income for the taxable year to the extent not subject to a substantial
risk of forfeiture and not previously included in gross
income.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idEAC6C8BDE7D4468991EC225403676ED5"><enum>(b)</enum><header>Requirement To
maintain qualified employer plan</header><text>Section 409A of the Internal
Revenue Code of 1986 (relating to inclusion in gross income of deferred
compensation under nonqualified deferred compensation plans) is amended by
redesignating subsection (e) as subsection (f) and by adding after subsection
(d) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id38CDD4A7957E4CEAB085DE2449513EB5" style="OLC">
<subsection id="id08F2C11B4C994BAD9EF18110A8D75001"><enum>(e)</enum><header>Requirement
that employer maintain qualified employer plans</header>
<paragraph id="idCFD5880C9EE84D1997D365C6CA55CF9F"><enum>(1)</enum><header>In
general</header><text>An employer meets the requirements of this subsection
only if, at all times during the taxable year, the employer maintains 1 or more
qualified employer plans which are defined benefit plans and which meet—</text>
<subparagraph id="id4CE4BACC7A7A4D75A993743212FDD276"><enum>(A)</enum><text>the participation
requirements of paragraph (2),</text>
</subparagraph><subparagraph id="idE2A7ACA6A7F7402B9E297B85FFD2818A"><enum>(B)</enum><text>the vesting
requirements of paragraph (3), and</text>
</subparagraph><subparagraph id="id5AA4585DA2F447F69CD5B3DD6040500C"><enum>(C)</enum><text>the minimum
benefit requirements of paragraph (4).</text>
</subparagraph></paragraph><paragraph id="id3629B936C2614D5CB5E7A79662AB6464"><enum>(2)</enum><header>Participation
requirements</header><text>A qualified employer plan shall meet the
requirements of this paragraph if the plan meets the requirements of section
410(b).</text>
</paragraph><paragraph id="id22903AA4D6034214B65B81A6DCFFE3F0"><enum>(3)</enum><header>Vesting
requirements</header><text>A qualified employer plan shall meet the
requirements of this paragraph if the plan meets the requirements of section
416(b)(1).</text>
</paragraph><paragraph id="id2D8052F802894576A0647C40792ACB1C"><enum>(4)</enum><header>Minimum benefit
requirements</header><text>A qualified employer plan shall meet the
requirements of this paragraph if the plan meets the requirements of section
416(c)(1), except that such section shall be applied for purposes of this
paragraph by determining the applicable percentage under section
416(c)(1)(B)(i) (and without regard to section 416(c)(1)(B)(ii)).</text>
</paragraph><paragraph id="id564FFA9604CB4C3298D1AC9CAE83EEE5"><enum>(5)</enum><header>Applicable
rules</header><text>The Secretary shall prescribe rules for the application of
sections 410(b), 416(b), and 416(c)(1) for purposes of this subsection. Such
rules shall provide—</text>
<subparagraph id="idAA1A4F5EB7074064AE41FAD3F676344F"><enum>(A)</enum><text>for such
modifications to such sections are necessary to apply such sections to a
qualified employer plan which is not a plan described in section 401(a) which
includes a trust exempt from tax under section 501(a), including for the
exclusion of employees from the application of section 410(b) in the same
manner as employees may be excluded under paragraphs (3) and (4) of section
410(b), and</text>
</subparagraph><subparagraph id="id0FF0EBB8D6724E2FB2352E0C239B90E4"><enum>(B)</enum><text>for the
application of section 416 to a qualified employer plan which is not a
top-heavy
plan.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1F8DBD7D827346A2BCEF3BC481D10D7A"><enum>(c)</enum><header>Effective
Date</header>
<paragraph id="ID6AA359E1B1CE4FD489652D8D58E509D3"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007, except that the amendments
shall only apply to amounts deferred after December 31, 2007 (and to earnings
on such amounts).</text>
</paragraph><paragraph id="IDFD75AE8A5C0742178FDC99A7B2973981"><enum>(2)</enum><header>Guidance
relating to certain existing arrangements</header><text>Not later than 60 days
after the date of the enactment of this Act, the Secretary of the Treasury
shall issue guidance providing a limited period during which a nonqualified
deferred compensation plan adopted before such date of enactment, may, without
violating the requirements of section 409A(a) of such Code, be amended—</text>
<subparagraph id="ID6A4BE344ED3B478887C10D037F7C3904"><enum>(A)</enum><text>to provide that a
participant may, no later than December 31, 2008—</text>
<clause id="id77ACAEBB87504587BAE48B9439839865"><enum>(i)</enum><text>terminate
participation in the plan, or</text>
</clause><clause id="idFC26EC0DBDE3485680B1AF26885644AF"><enum>(ii)</enum><text>cancel or modify
an outstanding deferral election with regard to all or a portion of amounts
deferred after December 31, 2007, to the extent necessary for the plan to meet
the requirements of section 409A(a)(1)(B) of such Code (as added by the
amendments made by this section),</text>
</clause><continuation-text continuation-text-level="subparagraph">but only
if amounts subject to the termination, cancellation, or modification are, to
the extent not previously included in gross income, includible in income of the
participant when no longer subject to substantial risk of forfeiture,
and</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFB1CD1E45FE0456AAD8CC25E0207E740"><enum>(B)</enum><text>to conform to the
requirements of section 409A(a)(1)(B) of such Code (as added by the amendments
made by this section) with regard to amounts deferred after December 31,
2007.</text>
</subparagraph></paragraph></subsection></section><section id="idE928D7275C9546A7AE369F5004E5717B"><enum>102.</enum><header>Limitations on
recovery of overpayments to participants and beneficiaries</header>
<subsection id="id1C35C753E9FC45B187F47D5C2B4CE9E2"><enum>(a)</enum><header>In
general</header><text>Section 206 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1056) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idFCA0C138E8A446EB81BF7B381D7F5088" style="OLC">
<subsection id="id0B1B4442C0D0459FB94FF42CBD0B17F0"><enum>(h)</enum><header>Special rules
relating To plan recovery of overpayment of benefits</header>
<paragraph id="idFA57C90D35F74F778C945983454CC310"><enum>(1)</enum><header>No recovery in
cases of hardship or insignificant amounts</header><text>Each pension plan
shall provide that the plan shall not take any action to recover any applicable
overpayment if the recovery—</text>
<subparagraph id="idD79485ECA4CC43FAA65407A8B60A920E"><enum>(A)</enum><text>would be against
equity and good conscience by reason of the hardship the recovery would impose
on the participant or beneficiary, or</text>
</subparagraph><subparagraph id="idC2B18BD9E35D4E4F83C8438A8BE260CD"><enum>(B)</enum><text>is of an amount
that the plan's actuary determines is actuarially insignificant.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">For
purposes of subparagraph (B), if the error resulting in the overpayment also
resulted in overpayments to 1 or more other participants or beneficiaries, the
determination as to whether any such overpayment is actuarially insignificant
shall be made by reference to the aggregate of all such overpayments rather
than each such overpayment.</continuation-text></paragraph><paragraph id="idBD4FD03ECD2C4BA1904B1899FB1E38E1"><enum>(2)</enum><header>Time limitation
on recovery</header><text>Each pension plan shall provide that the plan shall
not initiate any action to recover any applicable overpayment if the plan did
not initiate any such action with respect to the overpayment during the 3-year
period beginning on the date the overpayment was made.</text>
</paragraph><paragraph id="id3B78CDB4012148A89FD903538C0F8746"><enum>(3)</enum><header>Notice
requirement</header><text>Any notice to a plan participant or beneficiary with
respect to an applicable overpayment shall include notice of the participant's
or beneficiary's rights to appeal any administrative decision of the plan with
respect to the overpayment.</text>
</paragraph><paragraph id="id9868511664374707B103323D5EDA1B05"><enum>(4)</enum><header>Satisfaction of
fiduciary responsibility</header><text>A fiduciary of a plan shall not be
treated as violating any fiduciary responsibility under part 4 of this subtitle
solely by reason of a failure to recover any applicable overpayment in
accordance with the requirements of this subsection.</text>
</paragraph><paragraph id="idB00C1ED648FB4EF4BD9AC932E4BEB9BC"><enum>(5)</enum><header>Applicable
overpayment</header><text>The term <term>applicable overpayment</term> means
any payment of benefits to a participant or beneficiary in excess of the amount
to which the participant or beneficiary is entitled to under the plan which is
not due to the fault of the participant or
beneficiary.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id75DF018B2D58435F9B7B8B591FDD40F1"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="idDFA0ACB49D774813BA63EECDB30F5604"><enum>(1)</enum><header>In
general</header><text>The amendment made by this section shall apply to any
overpayment of benefits made on or after the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF12C156088CC4644904DCA860F2B2904"><enum>(2)</enum><header>Previous
overpayments</header><text>The amendment made by this section shall apply to
any overpayment of benefits made before the date of the enactment of this Act
if, on or before such date, the plan has not initiated any action to recover
such overpayment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id024F61FC50FA4BD2A27993EC6CBDCBF6"><enum>(3)</enum><header>Guidance</header><text>Not
later than 90 days after the date of the enactment of this Act, the Secretary
of Labor shall issue guidance on the method or methods for determining whether
an overpayment is actuarially insignificant for purposes of section
206(h)(1)(B) of the Employee Retirement Income Security Act of 1974 (as added
by this section).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id74797625524C4647AA70AF2996A926F7" section-type="subsequent-section"><enum>103.</enum><header>Protection of
subsidized early retirement benefits in corporate mergers and
acquisitions</header>
<subsection commented="no" display-inline="no-display-inline" id="id58E07772FBB8434886A602222EC8857D"><enum>(a)</enum><header>Amendment to
ERISA</header><text display-inline="yes-display-inline">Section 208 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1058) is amended
by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA7C139B5950344ECBC922942E4A03086"><enum>(1)</enum><text display-inline="yes-display-inline">striking <quote>A pension plan</quote> and
inserting <quote>(a) <header-in-text level="subsection" style="OLC">In
general.—</header-in-text>A pension plan</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id267D649111CA46929B054D2A2BFB4D9F"><enum>(2)</enum><text display-inline="yes-display-inline">adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD59779D9393F41F394A92B891EE9F325" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id31AFE4B1F9564E81A6D445D1932996AE"><enum>(b)</enum><header>Protection of
pro-Rata share of early retirement subsidy</header><text display-inline="yes-display-inline">If—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF1477BE2DCC8455D9F58F3F2C69E4CEC"><enum>(1)</enum><text display-inline="yes-display-inline">an employee, following the sale of a
corporation or a corporate division, liquidation, merger, consolidation, sale
of an interest in another corporation, partnership, or joint venture, or other
similar transaction, continues employment with the employer that acquires all
or part of the trade or business in such transaction (referred to in this
subsection as the <quote>successor employer</quote>), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24B01B72325C4396BF029DD4C43FE666"><enum>(2)</enum><text display-inline="yes-display-inline">the employee was a participant in a pension
plan maintained by the previous employer before such transaction,</text>
<continuation-text commented="no" continuation-text-level="paragraph">then, solely for the purpose of
determining eligibility for any subsidized early retirement benefit provided by
such plan, there shall be taken into account any periods of service with the
successor employer that would have been taken into account had such transaction
not
occurred.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idAA8FA26677944A02A058634EE9B3BD4D"><enum>(b)</enum><header>Amendment to
the Internal Revenue Code</header><text display-inline="yes-display-inline">Section 414(l) of the Internal Revenue Code
of 1986 (relating to mergers and consolidations of plans) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id69488E34C0494966A68FD04B573FF29F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id811DA65D4B5D40FEA98801B79AC884C8"><enum>(3)</enum><header>Protection of
pro-rata share of early retirement subsidy</header><text display-inline="yes-display-inline">If—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id1F3043331B4F48F9983392B3AA94C025"><enum>(A)</enum><text display-inline="yes-display-inline">an employee, following the sale of a
corporation or a corporate division, liquidation, merger, consolidation, sale
of an interest in another corporation, partnership, or joint venture, or other
similar transaction, continues employment with the employer that acquires all
or part of the trade or business in such transaction (referred to in this
paragraph as the <quote>successor employer</quote>), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1A4B695D522E48E282FFA9E627BB6BCD"><enum>(B)</enum><text display-inline="yes-display-inline">the employee was a participant in a pension
plan maintained by the previous employer before such transaction,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">then, solely for the purpose of
determining eligibility for any subsidized early retirement benefit provided by
such plan, there shall be taken into account any periods of service with the
successor employer that would have been taken into account had such transaction
not
occurred.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idD4E4EDDF8A614BD5A1D0B610556A349B" section-type="subsequent-section"><enum>104.</enum><header>Office of pension
participant advocacy</header>
<subsection commented="no" display-inline="no-display-inline" id="id3DF2799E258242C48392BE4D52AD7E2B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title III of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1201 et seq.) is
amended by adding at the end the following:</text>
<quoted-block act-name="Employee Retirement Income Security Act of 1974" display-inline="no-display-inline" id="IDB8D98AB8AD0A401DA388C05564C83EC4" style="OLC">
<subtitle commented="no" id="ID7924090232AD4F209B78562F8BEA92F5" style="OLC"><enum>D</enum><header>Office of Pension Participant
Advocacy</header>
<section commented="no" display-inline="no-display-inline" id="ID9151C17D6B8E4CCA81ABE7CDBBCB81BB" section-type="subsequent-section"><enum>3051.</enum><header>Office of Pension
Participant Advocacy</header>
<subsection commented="no" display-inline="no-display-inline" id="IDD0F9FE433E1746FC88AC05C5343D6E38"><enum>(a)</enum><header>Establishment</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID2E859939724B4FCFA8D18FA0AE849470"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There is established
in the Department of Labor an office to be known as the <quote>Office of
Pension Participant Advocacy</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9A051768568244EA834D6DF228251D8C"><enum>(2)</enum><header>Pension
Participant Advocate</header><text display-inline="yes-display-inline">The
Office of Pension Participant Advocacy shall be under the supervision and
direction of an official to be known as the <quote>Pension Participant
Advocate</quote> who shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID96E4B018080D4FB0A629D67686D8C318"><enum>(A)</enum><text display-inline="yes-display-inline">have demonstrated experience in the area of
pension participant assistance, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDAB5704365E874FF98F714ECE276912AA"><enum>(B)</enum><text display-inline="yes-display-inline">be selected by the Secretary after
consultation with pension participant advocacy organizations.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The Pension Participant Advocate
shall report directly to the Secretary and shall be entitled to compensation at
the same rate as the highest rate of basic pay established for the Senior
Executive Service under section 5382 of title 5, United States Code.</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDB77C89BF7E494C72A2E3922118908317"><enum>(b)</enum><header>Functions of
office</header><text display-inline="yes-display-inline">It shall be the
function of the Office of Pension Participant Advocacy to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2E484020A7754EF89F60AF8EC6F620BC"><enum>(1)</enum><text display-inline="yes-display-inline">evaluate the efforts of the Federal
Government, business, and financial, professional, retiree, labor, women’s, and
other appropriate organizations in assisting and protecting pension plan
participants, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDFA0AA87682F543C8B87617A5DF5EBA28"><enum>(A)</enum><text display-inline="yes-display-inline">serving as a focal point for, and actively
seeking out, the receipt of information with respect to the policies and
activities of the Federal Government, business, and such organizations which
affect such participants,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD6757B07E6FC4BABA0E1E0C1605E4C42"><enum>(B)</enum><text display-inline="yes-display-inline">identifying significant problems for
pension plan participants and the capabilities of the Federal Government,
business, and such organizations to address such problems, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB92BC2E626A14A12A5F6CAFF23F0AB64"><enum>(C)</enum><text display-inline="yes-display-inline">developing proposals for changes in such
policies and activities to correct such problems, and communicating such
changes to the appropriate officials,</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD0E76F0C013144AF92D6557CA19E0048"><enum>(2)</enum><text display-inline="yes-display-inline">promote the expansion of pension plan
coverage and the receipt of promised benefits by increasing the awareness of
the general public of the value of pension plans and by protecting the rights
of pension plan participants, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0EA9BA9DEEA4406DA0E388DF968D6E4B"><enum>(A)</enum><text display-inline="yes-display-inline">enlisting the cooperation of the public and
private sectors in disseminating information, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID82B18EB02DA14446908FD2E6C14C9E85"><enum>(B)</enum><text display-inline="yes-display-inline">forming private-public partnerships and
other efforts to assist pension plan participants in receiving their
benefits,</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE1BF8BFC768B485F887FA085CB4E8FCB"><enum>(3)</enum><text display-inline="yes-display-inline">advocate for the full attainment of the
rights of pension plan participants, including by making pension plan sponsors
and fiduciaries aware of their responsibilities,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2A7CF49DC9E249B8AB875052EE193BFF"><enum>(4)</enum><text display-inline="yes-display-inline">give priority to the special needs of low
and moderate income participants, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID273A26A043A045999D81A7A4A6EBA7CD"><enum>(5)</enum><text display-inline="yes-display-inline">develop needed information with respect to
pension plans, including information on the types of existing pension plans,
levels of employer and employee contributions, vesting status, accumulated
benefits, benefits received, and forms of benefits.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDE50D3F62334E444D93C0D0C14E00179D"><enum>(c)</enum><header>Reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID405F8AA79FA8473E00AF0883A600948F"><enum>(1)</enum><header>Annual
report</header><text display-inline="yes-display-inline">Not later than
December 31 of each calendar year, the Pension Participant Advocate shall
report to the Committees on Education and Labor and Ways and Means of the House
of Representatives and the Committees on Health, Education, Labor, and Pensions
and Finance of the Senate on its activities during the fiscal year ending in
the calendar year. Such report shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDD9B5754B78564BC700B969B7B6A1E9E4"><enum>(A)</enum><text display-inline="yes-display-inline">identify significant problems the Advocate
has identified,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID36E56751DBD44E8EAEF6A6E82838E051"><enum>(B)</enum><text display-inline="yes-display-inline">include specific legislative and regulatory
changes to address the problems, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7C7AD6301B9347A19200A7A543A893BB"><enum>(C)</enum><text display-inline="yes-display-inline">identify any actions taken to correct
problems identified in any previous report.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The Pension Participant Advocate
shall submit a copy of such report to the Secretary and any other appropriate
official at the same time it is submitted to the committees of Congress.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID799BAB8F4A0749A0B436E4CC43A7A0EC"><enum>(2)</enum><header>Specific
reports</header><text display-inline="yes-display-inline">The Pension
Participant Advocate shall report to the Secretary or any other appropriate
official any time the Advocate identifies a problem which may be corrected by
the Secretary or such official.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7A28BE6409244CF9B000FB93EF16A0AF"><enum>(3)</enum><header>Reports to be
submitted directly</header><text display-inline="yes-display-inline">The report
required under paragraph (1) shall be provided directly to the committees of
Congress without any prior review or comment by any person other than the
Secretary or any other Federal officer or employee.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8DA7E89843C3401B9EA7B1DC3D3B006D"><enum>(d)</enum><header>Specific
powers</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDD5C7C167855F4879AB40FCA1D38F9100"><enum>(1)</enum><header>Receipt of
information</header><text display-inline="yes-display-inline">Subject to such
confidentiality requirements as may be appropriate, the Secretary and other
Federal officials shall, upon request, provide such information (including plan
documents) as may be necessary to enable the Pension Participant Advocate to
carry out the Advocate’s responsibilities under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID39A9F28141DD40FCB5AB3D2EE4F04D8F"><enum>(2)</enum><header>Appearances</header><text display-inline="yes-display-inline">The Pension Participant Advocate may
represent the views and interests of pension plan participants before any
Federal agency, including, upon request of a participant, in any proceeding
involving the participant.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8661D22A4535412090EBF71B78527DD1"><enum>(3)</enum><header>Contracting
authority</header><text display-inline="yes-display-inline">In carrying out
responsibilities under subsection (b)(5), the Pension Participant Advocate may,
in addition to any other authority provided by law—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID592962F162244023BB562E6C622D6E8F"><enum>(A)</enum><text display-inline="yes-display-inline">contract with any person to acquire
statistical information with respect to pension plan participants, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID426521040C33462DBAF4197F00BA3BC7"><enum>(B)</enum><text display-inline="yes-display-inline">conduct direct surveys of pension plan
participants.</text>
</subparagraph></paragraph></subsection></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE92D0F99510E4669A8003DDAEA9EEED5"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">The table of
contents for title III of such Act is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="ID932F22F882754086BF7654409583E330" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="subtitle">Subtitle D—Office of Pension
Participant Advocacy</toc-entry>
<toc-entry bold="off" level="section">3051. Office of Pension
Participant
Advocacy.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID671E2F2C8F304B5A83F1E6932C3B32D7"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect on January 1, 2009.</text>
</subsection></section><section id="id0D6CA18AD81C42718AA32DC9A07E6846"><enum>105.</enum><header>Prospective
application of required benefit reductions under plans in critical
status</header>
<subsection id="id2C57A3F750C146418F8CB93BA33EFD6C"><enum>(a)</enum><header>In
general</header>
<paragraph id="id370F12D83DE6440495A885E30DFCB62F"><enum>(1)</enum><header>Amendment to
ERISA</header><text>Clause (ii) of section 305(e)(8)(A) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1085(e)(8)(A)(ii)) is amended
by striking <quote>the date on which the plan provides notice to the
participant or beneficiary under subsection (b)(3)(D) for the initial critical
year</quote> and inserting <quote>the effective date of the reduction specified
in the notice which the plan provides to the participant or beneficiary under
subparagraph (C)</quote>.</text>
</paragraph><paragraph id="idFB4521D902DD45A6A87684EA95433AF8"><enum>(2)</enum><header>Amendment to
1986 Code</header><text>Clause (ii) of section 432(e)(8)(A) of the Internal
Revenue Code of 1986 is amended by striking <quote>the date on which the plan
provides notice to the participant or beneficiary under subsection (b)(3)(D)
for the initial critical year</quote> and inserting <quote>the effective date
of the reduction specified in the notice which the plan provides to the
participant or beneficiary under subparagraph (C)</quote>.</text>
</paragraph></subsection><subsection id="idCA8BB10C76B44552BDC366CE93D71868"><enum>(b)</enum><header>Notice
requirements</header>
<paragraph id="idB688E89F1040491597BFDED1DA4DEF80"><enum>(1)</enum><header>Amendment to
ERISA</header><text>Subclause (II) of section 305(b)(3)(D)(ii) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1085(b)(3)(D)(ii)(II)) is
amended by striking <quote>the date such notice is provided for the first plan
year in which the plan is in critical status</quote> and inserting <quote>the
effective date of the reduction specified in the notice which the plan provides
to the participant or beneficiary under subsection (e)(8)(C)</quote>.</text>
</paragraph><paragraph id="id3C1D34A3EBDF498ABAAB6DDF05D7955B"><enum>(2)</enum><header>Amendment to
1986 Code</header><text>Subclause (II) of section 432(b)(3)(D)(ii) of the
Internal Revenue Code of 1986 is amended by striking <quote>the date such
notice is provided for the first plan year in which the plan is in critical
status</quote> and inserting <quote>the effective date of the reduction
specified in the notice which the plan provides to the participant or
beneficiary under subsection (e)(8)(C)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE16AE02AE97D4FAFAB18CACEAB5DC832"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
included in the amendments made by sections 202 and 212 of the Pension
Protection Act of 2006 to which they relate.</text>
</subsection></section><enum>II</enum><header>Protection for
the spouses of Federal employees</header>
<section id="IDEAB986E5C8FC4A5E861619007E00BBFD"><enum>201.</enum><header>Survivor
annuities for widows, widowers, and former spouses of Federal employees who die
before attaining age for deferred annuity under civil service retirement
system</header>
<subsection id="ID30C43B4D7E9E438ABAF2EAC050F64862"><enum>(a)</enum><header>Definition</header><text>Section
8341(a) of title 5, United States Code, is amended—</text>
<paragraph id="ID5E1D147A8F8941B694FCE7251581D658"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>employee or Member</quote> and inserting <quote>employee,
Member, or annuitant, or of a former employee or Member,</quote>; and</text>
</paragraph><paragraph id="IDA8FBBD30D4704AD69CBA9050F4599B7D"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>employee or Member</quote> and inserting <quote>employee,
Member, or annuitant, or of a former employee or Member,</quote>.</text>
</paragraph></subsection><subsection id="idDBF334E4ED2E4C1D8520DE23AD361BE7"><enum>(b)</enum><header>Benefits for
widow, widower, or former spouse</header>
<paragraph id="idB530B67F2AC84E18BC2A79A4CDBA4EEB"><enum>(1)</enum><header>In
general</header><text>Section 8341 of title 5, United States Code, is amended
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFA4C8C9A8AFA473EB26372C5B49ED828" style="OLC">
<subsection id="ID4f53991e33b1471bb5df48df505bda42"><enum>(l)</enum><text>If a former
employee heretofore or hereafter separated from the service with title to
deferred annuity from the Fund hereafter dies before having established a valid
claim for annuity and is survived by a widow or widower to whom married at the
date of separation, the widow or widower—</text>
<paragraph id="ID0ce4ca09f7624fad858264d4f6db4860"><enum>(1)</enum><text>is entitled to an
annuity equal to 55 percent of the deferred annuity of the former employee
commencing on the day after the former employee dies and terminating on the
last day of the month before the widow or widower dies or remarries before
becoming 55 years of age; or</text>
</paragraph><paragraph id="ID28bb40e59fef484dbe4756671ecad6a2"><enum>(2)</enum><text>may elect to
receive the lump-sum credit instead of annuity if the widow or widower is the
individual who would be entitled to the lump-sum credit and files application
therefor with the Office before the award of the annuity.</text>
</paragraph><continuation-text continuation-text-level="subsection">Notwithstanding the preceding
sentence, an annuity payable under this subsection to the widow or widower of a
former employee may not exceed the difference between—</continuation-text><paragraph id="IDe6d27b94786d4df7a455033c4f32a07d"><enum>(A)<?LEXA-Enum (A)?></enum><text>the annuity which would otherwise be payable to
such widow or widower under this subsection, and</text>
</paragraph><paragraph id="ID1cfa2acee2704e56ada0513d3882aa3e"><enum>(B)<?LEXA-Enum (B)?></enum><text>the amount of the survivor annuity payable to any
former spouse of such former employee under subsection (h) of this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id2420B67F604943789207C376B350A61B"><enum>(2)</enum><header>Technical and
conforming amendments</header><text>Section 8339(j) of title 5, United States
Code, is amended—</text>
<subparagraph commented="no" id="idC9F297C4C5C54B729066CBE718B93255"><enum>(A)</enum><text>in paragraph
(3)(A)(ii), by striking <quote>and (h)</quote> and inserting <quote>(h), and
(l)</quote>; and</text>
</subparagraph><subparagraph commented="no" id="id086604354A3344FD84D1E9784DB04084"><enum>(B)</enum><text>in paragraph (4),
by striking <quote>and (h)</quote> and inserting <quote>(h), and
(l)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID63C0054166E646C296F568677C495F5D"><enum>(c)</enum><header>Benefits for
former spouse</header><text>Section 8341(h) of title 5, United States Code, is
amended—</text>
<paragraph id="ID8A410B7B416C4E92B1F659766361C266"><enum>(1)</enum><text>in paragraph (1),
by adding after the first sentence <quote>Subject to paragraphs (2) through (5)
of this subsection, a former spouse of a former employee who dies after having
separated from the service with title to a deferred annuity under section
8338(a) but before having established a valid claim for annuity is entitled to
a survivor annuity under this subsection, if and to the extent expressly
provided for in an election under section 8339(j)(3) of this title, or in the
terms of any decree of divorce or annulment or any court order or
court-approved property settlement agreement incident to such decree.</quote>;
and</text>
</paragraph><paragraph id="ID32AE7A6F147F4EF5960672FA6D3D89CA"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="IDB1AAEF9E7AAD48199D65FE5975D85C2B"><enum>(A)</enum><text>in subparagraph
(A)(ii), by striking <quote>or annuitant,</quote> and inserting
<quote>annuitant, or former employee</quote>; and</text>
</subparagraph><subparagraph id="ID8C710F127B3546FA839ED7ED3929C376"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="id61DFC66C69BF4A138ABBA78CEA7DE538"><enum>(i)</enum><text>in
clause (ii), by striking <quote>or</quote> at the end;</text>
</clause><clause id="idD2967DB52D2042A69167E7FA60DFA2B2"><enum>(ii)</enum><text>in
clause (iii), by striking the period and inserting <quote>; or</quote>;
and</text>
</clause><clause id="id1863E24F981E459C910C70DDA07049C8"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA37A42F9E7424AF3AC840054DE1503E1" style="OLC">
<clause id="id058719ADF2784320AFEBD840891CCDEE"><enum>(iv)</enum><text>under
subparagraph (A) of subsection (l) of this section in the case of a widow or
widower, if the deceased was a former employee described in the first sentence
of such
subsection.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></subsection><subsection id="IDA7659276CCE343458C2CCAB1D4ADCDD8"><enum>(d)</enum><header>Protection of
survivor benefit rights</header><text>Section 8339(j)(3) of title 5, United
States Code, is amended by inserting at the end the following:</text>
<quoted-block id="ID20BEA7A4FADF4FF983A8EC485997E6BF">
<text display-inline="no-display-inline">The Office shall provide by regulation for
the application of this subsection to the widow, widower, or surviving former
spouse of a former employee who dies after having separated from the service
with title to a deferred annuity under section 8338(a) but before having
established a valid claim for
annuity.</text>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID725D0ED9AA744BDDBF82F27EAD38FD58"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act and shall apply only in the case of a former
employee who dies on or after such date.</text>
</subsection></section><section id="ID4655D323D562415C89A87333E9EF9FC4"><enum>202.</enum><header>Court orders
relating to Federal retirement benefits for former spouses of Federal
employees</header>
<subsection id="IDE2A381B5A440475BAC5778A6B0FEC6C2"><enum>(a)</enum><header>Civil service
retirement system</header><text>Section 8345(j) of title 5, United States Code,
is amended—</text>
<paragraph id="ID846C062C884744B0A2648C323D1682E1"><enum>(1)</enum><text>by redesignating
paragraph (3) as paragraph (4); and</text>
</paragraph><paragraph id="ID5F47AA46136E49B197D37D3C086B6B4D"><enum>(2)</enum><text>by inserting
after paragraph (2) the following:</text>
<quoted-block id="ID2E7D87DA33DF4A7CB9A77BB671BB77A6">
<paragraph id="IDA4FEDB8B11084E51008C39AD1FCEA0E1" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDC948D1BBCCC440A3A51F41CF532562FF"><enum>(A)</enum><text>A court decree, court
order, property settlement, or similar process referred to under paragraph
(1)(A) shall be treated as meeting the requirements of that paragraph if it
requires that payment of benefits be made to the former spouse of the employee,
Member, or annuitant—</text>
<clause id="ID40A4E5FC4C9F467CAE602758F9B9E400" indent="up1"><enum>(i)</enum><text>in the case of any payment before the
employee, Member, or annuitant has separated from service, on or after the date
on which the employee, Member, or annuitant attains (or would have attained)
the earliest retirement age,</text>
</clause><clause id="IDFBA9DEC9E8BA4FB7B357C17369452615" indent="up1"><enum>(ii)</enum><text>as if the employee, Member, or
annuitant had retired on the date on which such payment is to begin under such
order (but taking into account only the present value of the benefits actually
accrued and not taking into account the present value of any employer subsidy
for early retirement), and</text>
</clause><clause id="ID4E08A9D20F2B46D0AC07F9159BC0CB93" indent="up1"><enum>(iii)</enum><text>in any form in which such benefits
may be paid under this chapter to the employee, Member, or annuitant (other
than in the form of a joint and survivor annuity with respect to the former
spouse and his or her subsequent spouse).</text>
</clause></subparagraph><continuation-text continuation-text-level="paragraph">For
purposes of clause (ii), the interest rate assumption used in determining the
present value shall be the interest rate specified under this chapter or, if no
rate is specified, 5 percent.</continuation-text><subparagraph id="IDEB0A1EBA84964542A29922AA3BA7A27C" indent="up1"><enum>(B)</enum><text>In this paragraph, the term
<term>earliest retirement age</term> means the earlier of—</text>
<clause id="ID0D4BD27E2124481587DC7934A875EDB0"><enum>(i)</enum><text>the date on which the employee,
Member, or annuitant is entitled to a distribution under this chapter,
or</text>
</clause><clause id="ID4D788241B614445195EB6BACDDBA4714"><enum>(ii)</enum><text>the later of—</text>
<subclause id="ID971AF782959440D59F6284BB2B5E8F1E"><enum>(I)</enum><text>the date the employee, Member, or
annuitant attains age 50, or</text>
</subclause><subclause id="ID1AF62A482F7344E292F9AA2D03187BC4"><enum>(II)</enum><text>the earliest date on which the
employee, Member, or annuitant could begin receiving benefits under this
chapter if the employee, Member, or annuitant separated from
service.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID577AE2D511B645169B5BFBEE0076AD94"><enum>(b)</enum><header>Federal
employees retirement system</header><text>Section 8467 of title 5, United
States Code, is amended—</text>
<paragraph id="IDE78E5555B7754E878505C3CFA93EC9B6"><enum>(1)</enum><text>by redesignating
subsection (c) as subsection (d); and</text>
</paragraph><paragraph id="IDA7DF12ED5106464692AFB6E702322D1E"><enum>(2)</enum><text>by inserting
after subsection (b) the following:</text>
<quoted-block id="ID03B1185518E444FA9D23153D99B1C3E3">
<subsection id="ID849A0169D80E425D852FC8B502B54BDC"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID0D3AC2D6714B458BA854B9EB645BA0DC"><enum>(1)</enum><text>A court decree, court
order, property settlement, or similar process referred to under subsection
(a)(1) shall be treated as meeting the requirements of that subsection if it
requires that payment of benefits be made to the former spouse of the employee,
Member, or annuitant—</text>
<subparagraph id="ID8EFB99CD772A404292002B9426A35800" indent="up1"><enum>(A)</enum><text>in the case of any payment before the
employee, Member, or annuitant has separated from service, on or after the date
on which the employee, Member, or annuitant attains (or would have attained)
the earliest retirement age,</text>
</subparagraph><subparagraph id="ID7285DFAAA16F40E0879CC1C072DA0527" indent="up1"><enum>(B)</enum><text>as if the employee, Member, or
annuitant had retired on the date on which such payment is to begin under such
order (but taking into account only the present value of the benefits actually
accrued and not taking into account the present value of any employer subsidy
for early retirement), and</text>
</subparagraph><subparagraph id="ID07BCD1B9A3044DF28FC962B487106E78" indent="up1"><enum>(C)</enum><text>in any form in which such benefits may
be paid under this chapter to the employee, Member, or annuitant (other than in
the form of a joint and survivor annuity with respect to the alternate payee
and his or her subsequent spouse).</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">For
purposes of subparagraph (B), the interest rate assumption used in determining
the present value shall be the interest rate specified under this chapter or,
if no rate is specified, 5 percent.</continuation-text><paragraph id="ID5F4E46D04F86458BB185AE423468C285" indent="up1"><enum>(2)</enum><text>In this subsection, the term
<term>earliest retirement age</term> means the earlier of—</text>
<subparagraph id="IDEFA3F895C8BA44DF8957DC81628ED5CB"><enum>(A)</enum><text>the date on which the employee,
Member, or annuitant is entitled to a distribution under this chapter,
or</text>
</subparagraph><subparagraph id="ID716A38B8BB494ED493E7E323E4A45C47"><enum>(B)</enum><text>the later of—</text>
<clause id="IDA4A29E88A2E34646BA086706438C0925"><enum>(i)</enum><text>the date the employee, Member, or
annuitant attains age 50, or</text>
</clause><clause id="ID8A2A535C5ACA4B418F009636DE9DB935"><enum>(ii)</enum><text>the earliest date on which the
employee, Member, or annuitant could begin receiving benefits under this
chapter if the employee, Member, or annuitant separated from
service.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block></after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2ABBB777000448B0979B79D20057D6F1"><enum>(c)</enum><header>Effective date
and Application</header><text>The amendments made by this section shall take
effect on the date of the enactment of this Act and apply to any court decree,
court order, property settlement, or similar process issued or approved before,
on, or after that date.</text>
</subsection></section><section id="idC2B8E3C8B6974E2CAC5F8BB97B33F25F"><enum>203.</enum><header>Elimination of
certain bars to eligibility for survivor annuity</header><text display-inline="no-display-inline">Section 4(b) of the Civil Service Spouse
Equity Act of 1984 (5 U.S.C. 8341 note) is amended—</text>
<paragraph id="idE4675E4D34EA443881020237CDA4F644"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)(i), by striking
<quote>after September 14, 1978, and</quote>; and</text>
</paragraph><paragraph id="id6253D11E609C4A048C56FCA143810483"><enum>(2)</enum><text>by striking
paragraph (4).</text>
</paragraph></section><section id="ID6C55563DF80B4EBEB26335720021E018"><enum>204.</enum><header>Order of
precedence for disposition of amounts remaining in the thrift savings account
of a Federal employee (or former employee) who dies before making an effective
election controlling such disposition</header>
<subsection id="ID83EAE6C475E9484AADA617EB2020EFB7"><enum>(a)</enum><header>In
general</header><text>Section 8433(e) of title 5, United States Code, is
amended—</text>
<paragraph id="ID3B3EBFF24474425694D31F062D79F067"><enum>(1)</enum><text>by striking
<quote>(e)</quote> and inserting <quote>(e)(1)</quote>;</text>
</paragraph><paragraph id="ID8578404C03CF4D11BA3C1DB602441BCC"><enum>(2)</enum><text>by striking all
that follows <quote>paid</quote> and inserting <quote>in accordance with
paragraph (2).</quote>; and</text>
</paragraph><paragraph id="IDE4C78899103842889802E982119B8647"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID195A4594E1224D45BCCAB5144D9FEE7F">
<paragraph id="ID90B2664183EB49019500C1B343C96648" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDDAAB6E12A9344922A1AD623FD511DFF7"><enum>(A)</enum><text>An amount under
paragraph (1) shall be paid in a manner consistent with the provisions of
section 8424(d), except that, in applying the order of precedence under such
provisions—</text>
<clause id="ID2DD3E9E86BE24F8680AD3FA5EA96007B" indent="up1"><enum>(i)</enum><text>the widow or widower of the decedent
shall be the first party entitled to receive (instead of any designated
beneficiary); and</text>
</clause><clause id="IDCC10EE4F8ADC4C92B4125EBC77A108DA" indent="up1"><enum>(ii)</enum><text>if there is no widow or widower, the
party next entitled to receive shall be the beneficiary or beneficiaries
designated by the employee or Member (or former employee or Member) in
accordance with the procedures that would otherwise normally apply, subject to
such additional conditions as the Executive Director shall by regulation
prescribe based on section 205(c)(2) of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1055(c)(2)">29 U.S.C. 1055(c)(2)</external-xref>).</text>
</clause></subparagraph><subparagraph id="ID12E2420F932844AA8F430063CC7495C9" indent="up1"><enum>(B)</enum><text>The order of precedence under
subparagraph (A) shall not apply if the widow or widower consents in writing to
the application of the order of precedence under section
8424(d).</text>
</subparagraph></paragraph><after-quoted-block></after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID2382D01B3F604F06A52F8CD26D9914EB"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
90th day after the date of the enactment of this Act, and shall apply in the
case of any individual who dies on or after such 90th day.</text>
</subsection></section>