1.
(a)This Act may be cited
as the Preserve Benefits and Jobs Act
of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
Title I—Single Employer Plans
Sec. 101. Extended period for single-employer defined benefit
plans to amortize certain shortfall amortization bases.
Sec. 102. Expansion of corridor within which single-employer
defined benefit plans are allowed to average asset values.
Sec. 103. Lookback for benefit accrual restriction.
Sec. 104. Lookback for credit balance rule.
Sec. 105. Clarification of treatment of expenses.
Sec. 106. Information reporting.
Sec. 107. Benefit restriction effective date for collectively
bargained plans.
Sec. 108. Social Security level-income options.
Sec. 109. PBGC guarantee.
Sec. 110. Application of extended amortization period to plans
subject to prior law funding rules.
Sec. 111. Additions to funding-based limits on benefits and
benefits accruals under single-employer plans.
Sec. 112. Reportable events.
Title II—Multiemployer Plans
Sec. 201. Adjustments to funding standard account rules;
reporting clarification.
Sec. 202. Multiemployer plans in endangered or critical
status.
Sec. 203. Multiemployer plan mergers and alliances.
Sec. 204. Strengthening participants’ benefit
protections.
<enum>I</enum><header>Single Employer
Plans</header>
<section id="H59C95217A08F4CCBBEB6E963E9919C30" section-type="subsequent-section"><enum>101.</enum><header>Extended period for
single-employer defined benefit plans to amortize certain shortfall
amortization bases</header>
<subsection id="H6BBFDE0389124CA48ED8919366A39938"><enum>(a)</enum><header>Amendments to
ERISA</header>
<paragraph id="H8E84A175F44B4679BA584F9766539FE5"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 303(c) of the Employee
Retirement Income Security Act of 1974 is amended by adding at the end the
following subparagraphs:</text>
<quoted-block id="H1091E1AF13DE4CF1951CD1D98E4C3A04" style="OLC">
<subparagraph id="HE56654F2926643F1AADDC2DA6B7493A5"><enum>(D)</enum><header>Special
rule</header>
<clause id="HEF5C9EB85C73463F8E2F86C44C169ADC"><enum>(i)</enum><header>In
general</header><text>In the case of the shortfall amortization base of an
active plan for any applicable plan year, the shortfall amortization
installments are the amounts described in clause (ii) or clause (iii), as
applicable, determined pursuant to clause (iv).</text>
</clause><clause id="HEA469D14A7734AA596716821A10E87B6"><enum>(ii)</enum><header>7-year
amortization</header>
<subclause id="H7B9D5AEEAF1747E2842DBDC5BB97C857"><enum>(I)</enum><header>In
general</header><text>The shortfall amortization installments described in this
clause are—</text>
<item id="HFC7FD31092BC4B819BABD7DAF1CB7C96"><enum>(aa)</enum><text>in
the case of the last 7 plan years in the 9-plan-year period beginning with the
applicable plan year, the amounts necessary to amortize the shortfall
amortization base of the plan for the applicable plan year in level annual
installments over such last 7 plan years, and</text>
</item><item id="H3CFAB1E7547B40E894BBF00C5D3E64A3"><enum>(bb)</enum><text>in
the case of the first 2 plan years in such 9-plan-year period, interest on such
shortfall amortization base (determined using the effective rate of interest
for the plan for the plan year).</text>
</item></subclause><subclause id="H0EBC3423964749AB92453754251B6C2B"><enum>(II)</enum><header>Shortfall
amortization installment</header><text>The shortfall amortization installment
for any plan year in the 9-plan-year period under this clause with respect to
such shortfall amortization base is the annual installment determined under
this clause for that year for that base.</text>
</subclause><subclause id="HF11215948B634701A279F16C78083E3C"><enum>(III)</enum><header>Minimum
required contribution for first 2 years</header><text display-inline="yes-display-inline">Notwithstanding the preceding provisions of
this clause, the minimum required contribution for the two plan years described
in subclause (I)(bb) shall be increased to the extent necessary so that the
minimum required contribution for such plan year is at least equal to the
applicable percentage of the minimum required contribution for the plan year
preceding the first applicable plan year. If the minimum required contribution
is increased by reason of the preceding sentence, the shortfall amortization
installments with respect to the shortfall amortization base for any applicable
plan year shall be reduced to take such increase into account, pursuant to
rules issued by the Secretary of the Treasury, but only if the shortfall
amortization installments with respect to the shortfall amortization base for
such applicable plan year are determined under this clause. For purposes of
this subclause, any reference to the minimum required contribution for any plan
year shall be a reference to the minimum required contribution for such plan
year prior to any reduction under subsection (f) and without taking into
account any waiver under section 302(c). For purposes of this clause, the
applicable percentage shall be determined as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Tax (No Calculation)" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="261pts" min-data-value="43"></colspec><colspec coldef="fig" colname="column2" colwidth="93pts" min-data-value="15"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0">The applicable</entry>
</row>
<row><entry colname="column1" morerows="0" namest="column1">For
the:</entry><entry align="right" colname="column2" morerows="0" namest="column2">percentage is:</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">First applicable plan year</entry><entry align="right" colname="column2" rowsep="0">105</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Second applicable plan year</entry><entry align="right" colname="column2" rowsep="0">110</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Plan year following the second applicable plan
year</entry><entry align="right" colname="column2" rowsep="0">115</entry>
</row>
</tbody>
</tgroup>
</table>
</subclause></clause><clause id="HA05C6E5A0EC546F9A4113CEC17D8115B"><enum>(iii)</enum><header>15-year
amortization</header><text>The shortfall amortization installments described in
this clause are the amounts necessary to amortize the shortfall amortization
base of the plan for the applicable plan year in level annual installments over
15 years. The shortfall amortization installments for any plan year in the
15-plan-year period under this clause is the annual installment determined
under this clause for that year for that base.</text>
</clause><clause id="H4050C2F6BE8A4CB1BA7356197CF4F941"><enum>(iv)</enum><header>Election</header><text>The
plan sponsor may, with respect to a plan, elect whether to determine shortfall
amortization installments under clause (ii), clause (iii), or without regard to
this subparagraph. Such election shall be made at such times, and in such form
and manner, as shall be prescribed by the Secretary of the Treasury, and may be
revoked only with the consent of the Secretary of the Treasury. In the absence
of a timely election to determine shortfall amortization installments under
such clause (ii) or clause (iii), such installments shall be determined without
regard to this subparagraph.</text>
</clause></subparagraph><subparagraph id="H010AE0234D09450DB27D14CCE57697C9"><enum>(E)</enum><header>Failure to
maintain active plan</header>
<clause id="H49AF234B6284411480B7498669E7A6E9"><enum>(i)</enum><header>2 and 7
rule</header><text display-inline="yes-display-inline">If the shortfall
amortization installments with respect to a shortfall amortization base for an
applicable plan year are determined under subparagraph (D)(ii), the plan must
remain an active plan for the subsequent plan year. If such plan fails to be an
active plan in such plan year, the minimum required contribution for the plan
year with respect to which a failure occurs shall be increased by all amounts
by which the minimum required contribution for the current plan year or any
prior plan year has been reduced by the application of subparagraph (D), plus
interest on such amounts at the effective rate of interest for the plan for the
plan year for which the increase applies. However, any such increase in the
minimum required contribution shall not require a contribution to the extent
that the contribution would cause the value of plan assets for the plan year to
exceed the funding target of the plan for the plan year (determined without
regard to subsection (i)(1)). If the minimum required contribution is increased
by reason of this clause, the shortfall amortization installments with respect
to the shortfall amortization base for any applicable plan year shall be
reduced to take such increase into account, pursuant to rules issued by the
Secretary of the Treasury, but only if the shortfall amortization installments
with respect to the shortfall amortization base for such applicable plan year
are determined under subparagraph (D)(ii). For purposes of this clause, any
reference to the minimum required contribution for any plan year shall be a
reference to the minimum required contribution for such plan year prior to any
reduction under subsection (f) and without taking into account any waiver under
section 302(c).</text>
</clause><clause id="H952011BC47444FC08BB47AB56CD5872B"><enum>(ii)</enum><header>15-year
rule</header><text>If the shortfall amortization installments with respect to a
shortfall amortization base for an applicable plan year are determined under
subparagraph (D)(iii), the plan must remain an active plan for the 7 subsequent
plan years. If such plan fails to be an active plan in any such plan year, the
shortfall amortization base, reduced by the principal portion of prior
shortfall amortization installments relating to that base, shall be amortized
over 7 years.</text>
</clause><clause id="H71D4E440185C4A4E9DB13345560069AA"><enum>(iii)</enum><header>Special
rule</header><text display-inline="yes-display-inline">In the case of an
applicable plan year that ends before July 1, 2009, the plan sponsor may elect
not to have the active plan requirement apply for such plan year. If such
election is made—</text>
<subclause id="H1C3557AD1288454B91C2026A5C26F868"><enum>(I)</enum><text display-inline="yes-display-inline">clause (i) shall be applied so as to
require the plan to remain an active plan for the 2 subsequent plan years
(instead of 1 subsequent plan year) under rules prescribed by the Secretary of
the Treasury, and</text>
</subclause><subclause id="H5FD479B966274C399E5350A38407DC64"><enum>(II)</enum><text display-inline="yes-display-inline">clause (ii) shall be applied by
substituting <quote>8</quote> for <quote>7</quote> the first place it appears
and by substituting <quote>6</quote> for <quote>7</quote> the second place it
appears.</text>
</subclause><continuation-text continuation-text-level="clause">Such election
shall be made at such times, and in such form and manner, as shall be
prescribed by the Secretary of the Treasury, and may be revoked only with
consent of the Secretary of the Treasury.</continuation-text></clause></subparagraph><subparagraph id="H36A5B319CE764237AA95A10A7B4A9C8F"><enum>(F)</enum><header>Applicable plan
year</header><text>For purposes of this paragraph, the term <term>applicable
plan year</term> means—</text>
<clause id="H34D06FEA4DB54B28A0A88BB90BE888F2"><enum>(i)</enum><text>except as provided
in clauses (ii) and (iii), any plan year beginning in 2009 or 2010,</text>
</clause><clause id="HD6154155EC004368A5F63854DAE48124"><enum>(ii)</enum><text>in the case of a
plan with a plan year beginning after October 31 and before January 1, any plan
year beginning in 2008 or 2009, and</text>
</clause><clause id="H80BCB8911ADA497294D526CCB6F22AF5"><enum>(iii)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2008 or 2009.</text>
</clause></subparagraph><subparagraph id="H1CD6C6CF79634F0EB1505F08B30EB597"><enum>(G)</enum><header>Active
plan</header>
<clause id="HFF673AB808C74DFA84B4D7EE5B9DD6C9"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
paragraph, the term <term>active plan</term> means a defined benefit plan that
is described in clause (ii), (iii), or (iv). A defined benefit plan may satisfy
different clauses in different years. Notwithstanding clause (ii), (iii), or
(iv), a defined benefit plan is not an active plan if an election under section
402(a)(1) of the Pension Protection Act of 2006 is in effect with respect to
such plan, or if the plan is described under rules prescribed by the Secretary
of the Treasury designed to prevent evasion of the purposes of this
subparagraph.</text>
</clause><clause id="H18F3D34642734CD2B011C40B3F0D994F"><enum>(ii)</enum><header>Defined benefit
plan</header>
<subclause id="H7D06655ECE0C413F85D510504375A918"><enum>(I)</enum><header>In
general</header><text>A defined benefit plan is described in this clause if
minimum benefit accruals are provided on behalf of all employees who have
satisfied the plan’s age and service requirements and who would, but for any
prior amendment ceasing accruals, be eligible for an accrual under the
plan.</text>
</subclause><subclause id="H42CF0325819947F1B640515F9BDC2C41"><enum>(II)</enum><header>Special rule
regarding minimum benefit accruals</header><text display-inline="yes-display-inline">For purposes of this clause, the employees
described in this clause shall be treated as receiving minimum benefit accruals
for a plan year if all such employees are accruing a benefit and—</text>
<item id="H6E6D77CAC0374E2BA4DB704F6F4528"><enum>(aa)</enum><text>the
rate of benefit accrual for any such employee is not less than the greater
of—</text>
<subitem id="H5D201B152BE749E889A403C3002132A3"><enum>(AA)</enum><text>the rate of
benefit accrual that would have been applied to the employee under the benefit
formula in effect on July 1, 2009, disregarding any amendments to the plan
adopted after June 30, 2009, or</text>
</subitem><subitem id="HCE316B234F5C4693998C53005B02F346"><enum>(BB)</enum><text>the rate of
benefit accrual that would have applied to the employee under the benefit
formula in effect as of the last date prior to the effective date of any plan
amendment adopted prior to July 1, 2009 that ceased providing benefit accruals
based on additional service credit with respect to such employee, or</text>
</subitem></item><item id="H0ECFFF206262425DA497CCAF04009BBC"><enum>(bb)</enum><text display-inline="yes-display-inline">the target normal cost (without regard to
plan administrative expenses) for such plan year with respect to such employees
is at least 3 percent of the aggregate compensation (as defined in section
415(c)(3) of the Internal Revenue Code of 1986) of such employees for such plan
year. Solely for purposes of this paragraph, target normal cost shall be
determined by using 5 percent in lieu of the interest rate applicable under
subsection (h) and by using the mortality tables described in subsection
(h)(3)(A).</text>
</item></subclause></clause><clause id="H91C9A332761C4B169219993B351AA108"><enum>(iii)</enum><header>Defined
contribution plan</header>
<subclause id="H9D719CBE5D7B4428A56AC0C8D9399C6E"><enum>(I)</enum><header>In
general</header><text>A defined benefit plan is described in this clause
if—</text>
<item id="H75B930E6D78D4850B57504E5B3575DE0"><enum>(aa)</enum><text>the
defined benefit plan satisfies clause (ii) except with respect to employees
whose failure to accrue a minimum benefit is attributable to a plan amendment
adopted prior to July 1, 2009, and</text>
</item><item id="HB000358AAC3E44C8B587E835A232DA2C"><enum>(bb)</enum><text>the
plan sponsor (or any member of such sponsor’s controlled group) maintains a
defined contribution plan under which allocations are made on behalf of each
employee whose failure to accrue a benefit under the defined benefit plan
causes the defined benefit plan not to be described in clause (ii).</text>
</item></subclause><subclause id="H1D4948BF78A242618F304ACE3BC49DA2"><enum>(II)</enum><header>Minimum
allocations</header><text>Such allocations shall not be less than 3 percent of
an employee’s compensation (as determined in accordance with section 414(s) of
the Internal Revenue Code of 1986). A defined contribution plan shall not fail
to satisfy the requirements of this clause solely by reason of the failure to
make allocations on behalf of one or more highly compensated employees (as
defined in section 414(q) of the Internal Revenue Code of 1986).</text>
</subclause><subclause id="H9CA294207A31423EBEA50BB2B86B0C77"><enum>(III)</enum><header>Allocations
taken into account</header><text>For purposes of this clause, only the
following types of allocations may be taken into account:</text>
<item id="H4B8CFC6257B3421E9F861DFD3A7B73C0"><enum>(aa)</enum><text>Employer
contributions or forfeitures allocated without regard to whether an employee
makes an elective contribution or an employee contribution.</text>
</item><item id="HEA1C905D2D174C1EB66D449C56569F8F"><enum>(bb)</enum><text>In
the case of the first plan year ending after June 30, 2009, matching
contributions (as defined in section 401(m)(4)(A) of the Internal Revenue Code
of 1986).</text>
</item></subclause></clause><clause id="HF1568CF39F224B708C89E60FB6DCA029"><enum>(iv)</enum><header>Nonqualified
plan</header>
<subclause id="H765826B7BFFD426EAA4997B1F0442CD9"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">A defined benefit
plan is described in this clause if no key employee (as defined in section
416(i) of the Internal Revenue Code of 1986 without regard to paragraph (5)
thereof) accrues any new benefits for the plan year under any nonqualified
deferred compensation plan (as defined in section 409A(d) of the Internal
Revenue Code of 1986) maintained by the sponsor of the defined benefit plan or
by any member of such sponsor’s controlled group.</text>
</subclause><subclause id="H3013021E913A463E92895783F1E1567B"><enum>(II)</enum><header>Revocation of
certain elections</header><text>The Secretary of the Treasury shall provide
rules under section 409A of the Internal Revenue Code of 1986 under which
elections to defer compensation made prior to the date of enactment of this
clause may be revoked by an employee within 180 days after the date of
enactment of this clause, but only to the extent that, pursuant to this clause,
such elections could otherwise cause a failure of the employee to—</text>
<item id="HE7BE7D66DB054B899A304EF4F96AE1D1"><enum>(aa)</enum><text>earn compensation
under an arrangement that, but for the election, is not a nonqualified deferred
compensation plan (as defined in section 409A(d) of the Internal Revenue Code
of 1986), and</text>
</item><item id="H019AF02A3CD2497AACD6E5BC24EE221F"><enum>(bb)</enum><text>earn compensation
that is not payable to the employee in another form or under a different
arrangement.</text>
</item></subclause></clause><clause id="H5DF534908DB247EFBB6561B0A8894B35"><enum>(v)</enum><header>Multiple
employer plans</header><text>In the case of a defined benefit plan described in
section 413(c)(4)(B) of the Internal Revenue Code of 1986, such plan shall be
treated as an active plan if such plan satisfies clause (ii), (iii), or (iv)
with respect to at least 85 percent of the employers participating in such
plan. In applying the 85 percent requirement, different employers may satisfy
different clauses.</text>
</clause><clause id="H65FB41C7B170453691AF73C531A5C1AF"><enum>(vi)</enum><header>Controlled
group</header><text>For purposes of this paragraph, the term <term>controlled
group</term> means all employers treated as a single employer pursuant to
subsections (b) and (c) of section 414 of the Internal Revenue Code of
1986.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0F2E532DF66E4C3BA5B4EE35E7EAE7F7"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (1) of section 303(c) of such Act is amended
by striking <quote>the shortfall amortization bases for such plan year and each
of the 6 preceding plan years</quote> and inserting <quote>any shortfall
amortization base which has not been fully amortized under this
subsection</quote>.</text>
</paragraph></subsection><subsection id="H96E794D4EBCE4DBD9C823C483740B668"><enum>(b)</enum><header>Amendments to
INTERNAL REVENUE CODE OF 1986</header>
<paragraph id="H35FB449BF8734A2299613BA1DB0E9AF6"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 430(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
subparagraphs:</text>
<quoted-block id="H620419A8F40444599FA3A707E9718F5B" style="OLC">
<subparagraph id="HA4A1B700231147EAACA007A70A0286BD"><enum>(D)</enum><header>Special
rule</header>
<clause id="HD2A24C5B52B0447E8DBE30AC32AB48E3"><enum>(i)</enum><header>In
general</header><text>In the case of the shortfall amortization base of an
active plan for any applicable plan year, the shortfall amortization
installments are the amounts described in clause (ii) or clause (iii), as
applicable, determined pursuant to clause (iv).</text>
</clause><clause id="H4DBB0E764A0846D2BC7E5F21994246B8"><enum>(ii)</enum><header>7-year
amortization</header>
<subclause id="HEE3BEDA1B3244CB086C0629B2C3195E0"><enum>(I)</enum><header>In
general</header><text>The shortfall amortization installments described in this
clause are—</text>
<item id="H2E196641D36F414A8B9271853AEB47C4"><enum>(aa)</enum><text>in
the case of the last 7 plan years in the 9-plan-year period beginning with the
applicable plan year, the amounts necessary to amortize the shortfall
amortization base of the plan for the applicable plan year in level annual
installments over such last 7 plan years, and</text>
</item><item id="H9C31A33AE5554BBFA249425D3D05FA0B"><enum>(bb)</enum><text>in
the case of the first 2 plan years in such 9-plan-year period, interest on such
shortfall amortization base (determined using the effective rate of interest
for the plan for the plan year).</text>
</item></subclause><subclause id="HBE22C15107FF48868C7388D4C2D7F1A9"><enum>(II)</enum><header>Shortfall
amortization installment</header><text>The shortfall amortization installment
for any plan year in the 9-plan-year period under this clause with respect to
such shortfall amortization base is the annual installment determined under
this clause for that year for that base.</text>
</subclause><subclause id="H49C484126D5540CE93240D0026642A17"><enum>(III)</enum><header>Minimum
required contribution for first 2 years</header><text display-inline="yes-display-inline">Notwithstanding the preceding provisions of
this clause, the minimum required contribution for the two plan years described
in subclause (I)(bb) shall be increased to the extent necessary so that the
minimum required contribution for such plan year is at least equal to the
applicable percentage of the minimum required contribution for the plan year
preceding the first applicable plan year. If the minimum required contribution
is increased by reason of the preceding sentence, the shortfall amortization
installments with respect to the shortfall amortization base for any applicable
plan year shall be reduced to take such increase into account, pursuant to
rules issued by the Secretary, but only if the shortfall amortization
installments with respect to the shortfall amortization base for such
applicable plan year are determined under this clause. For purposes of this
subclause, any reference to the minimum required contribution for any plan year
shall be a reference to the minimum required contribution for such plan year
prior to any reduction under subsection (f) and without taking into account any
waiver under section 412(c). For purposes of this clause, the applicable
percentage shall be determined as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Tax (No Calculation)" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="319pts" min-data-value="43"></colspec><colspec coldef="fig" colname="column2" colwidth="87pts" min-data-value="15"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0">The applicable</entry>
</row>
<row><entry colname="column1" morerows="0" namest="column1">For
the:</entry><entry align="right" colname="column2" morerows="0" namest="column2">percentage is:</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">First applicable plan year</entry><entry align="right" colname="column2" rowsep="0">105</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Second applicable plan year</entry><entry align="right" colname="column2" rowsep="0">110</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Plan year following the second applicable plan
year</entry><entry align="right" colname="column2" rowsep="0">115</entry>
</row>
</tbody>
</tgroup>
</table>
</subclause></clause><clause id="HBB568C4D06FD4D26B07A99982C85D677"><enum>(iii)</enum><header>15-year
amortization</header><text>The shortfall amortization installments described in
this clause are the amounts necessary to amortize the shortfall amortization
base of the plan for the applicable plan year in level annual installments over
15 years. The shortfall amortization installments for any plan year in the
15-plan-year period under this clause is the annual installment determined
under this clause for that year for that base.</text>
</clause><clause id="H328505CBCC324817B22B55C8C1CAFA4E"><enum>(iv)</enum><header>Election</header><text>The
plan sponsor may, with respect to a plan, elect whether to determine shortfall
amortization installments under clause (ii), clause (iii), or without regard to
this subparagraph. Such election shall be made at such times, and in such form
and manner, as shall be prescribed by the Secretary, and may be revoked only
with the consent of the Secretary. In the absence of a timely election to
determine shortfall amortization installments under such clause (ii) or clause
(iii), such installments shall be determined without regard to this
subparagraph.</text>
</clause></subparagraph><subparagraph id="H4E8977B276754C8BAD8A268C6F5431B6"><enum>(E)</enum><header>Failure to
maintain active plan</header>
<clause id="H4427E5D1CDC9437798603022A0A5FE5B"><enum>(i)</enum><header>2 and 7
rule</header><text display-inline="yes-display-inline">If the shortfall
amortization installments with respect to a shortfall amortization base for an
applicable plan year are determined under subparagraph (D)(ii), the plan must
remain an active plan for the subsequent plan year. If such plan fails to be an
active plan in such plan year, the minimum required contribution for the plan
year with respect to which a failure occurs shall be increased by all amounts
by which the minimum required contribution for the current plan year or any
prior plan year has been reduced by the application of subparagraph (D), plus
interest on such amounts at the effective rate of interest for the plan for the
plan year for which the increase applies. However, any such increase in the
minimum required contribution shall not require a contribution to the extent
that the contribution would cause the value of plan assets for the plan year to
exceed the funding target of the plan for the plan year (determined without
regard to subsection (i)(1)). If the minimum required contribution is increased
by reason of this clause, the shortfall amortization installments with respect
to the shortfall amortization base for any applicable plan year shall be
reduced to take such increase into account, pursuant to rules issued by the
Secretary, but only if the shortfall amortization installments with respect to
the shortfall amortization base for such applicable plan year are determined
under subparagraph (D)(ii). For purposes of this clause, any reference to the
minimum required contribution for any plan year shall be a reference to the
minimum required contribution for such plan year prior to any reduction under
subsection (f) and without taking into account any waiver under section
412(c).</text>
</clause><clause id="H5AE5CAAA7C69434F91B0E1DD9E57522E"><enum>(ii)</enum><header>15-year
rule</header><text>If the shortfall amortization installments with respect to a
shortfall amortization base for an applicable plan year are determined under
subparagraph (D)(iii), the plan must remain an active plan for the 7 subsequent
plan years. If such plan fails to be an active plan in any such plan year, the
shortfall amortization base, reduced by the principal portion of prior
shortfall amortization installments relating to that base, shall be amortized
over 7 years.</text>
</clause><clause id="H1FEC188B0F284AFD8FA19A154714A034"><enum>(iii)</enum><header>Special
rule</header><text display-inline="yes-display-inline">In the case of an
applicable plan year that ends before July 1, 2009, the plan sponsor may elect
not to have the active plan requirement apply for such plan year. If such
election is made—</text>
<subclause id="H8C9593F3302044F0973F2D10F317AD61"><enum>(I)</enum><text>clause (i) shall
be applied so as to require the plan to remain an active plan for the 2
subsequent plan years (instead of 1 subsequent plan year) under rules
prescribed by the Secretary, and</text>
</subclause><subclause id="H60DCDB549CDA49CAB2B61295547E42AB"><enum>(II)</enum><text>clause (ii) shall
be applied by substituting <quote>8</quote> for <quote>7</quote> the first
place it appears and by substituting <quote>6</quote> for <quote>7</quote> the
second place it appears.</text>
</subclause><continuation-text continuation-text-level="clause">Such election
shall be made at such times, and in such form and manner, as shall be
prescribed by the Secretary, and may be revoked only with consent of the
Secretary.</continuation-text></clause></subparagraph><subparagraph id="HC70F9D18835544B0AA43B858A511A856"><enum>(F)</enum><header>Applicable plan
year</header><text>For purposes of this paragraph, the term <term>applicable
plan year</term> shall mean—</text>
<clause id="H8A4FBB44570444288F6B1C484CDED4D3"><enum>(i)</enum><text>except as provided
in clauses (ii) and (iii), any plan year beginning in 2009 or 2010,</text>
</clause><clause id="H43642D3AEF2F4590BF4C32DAAF836402"><enum>(ii)</enum><text>in the case of a
plan with a plan year beginning after October 31 and before January 1, any plan
year beginning in 2008 or 2009, and</text>
</clause><clause id="H21A9872ABB73416EAFBA5ADC351CF3A9"><enum>(iii)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2008 or 2009.</text>
</clause></subparagraph><subparagraph id="H9092F068E23A4DD09F950E544AF1245B"><enum>(G)</enum><header>Active
plan</header>
<clause id="HEB08426680FF43CB8A9DE4765D27D065"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
paragraph, the term <term>active plan</term> means a defined benefit plan that
is described in clause (ii), (iii), or (iv). A defined benefit plan may satisfy
different clauses in different years. Notwithstanding clause (ii), (iii), or
(iv), a defined benefit plan is not an active plan if an election under section
402(a)(1) of the Pension Protection Act of 2006 is in effect with respect to
such plan, or if the plan is described under rules prescribed by the Secretary
designed to prevent evasion of the purposes of this subparagraph.</text>
</clause><clause id="H60E37FA4C26A4A708D6EA32E4F0608DF"><enum>(ii)</enum><header>Defined benefit
plan</header>
<subclause id="HDBC01D1E0D08413B845795EF35563E2F"><enum>(I)</enum><header>In
general</header><text>A defined benefit plan is described in this clause if
minimum benefit accruals are provided on behalf of all employees who have
satisfied the plan’s age and service requirements and who would, but for any
prior amendment ceasing accruals, be eligible for an accrual under the
plan.</text>
</subclause><subclause id="H8859E58D1CAC48EAB2E73FD5B43F421C"><enum>(II)</enum><header>Special rule
regarding minimum benefit accruals</header><text display-inline="yes-display-inline">For purposes of this clause, the employees
described in this clause shall be treated as receiving minimum benefit accruals
for a plan year if all such employees are accruing a benefit and—</text>
<item id="H336C754967A84F17B1CA12BD353567B2"><enum>(aa)</enum><text>the
rate of benefit accrual for any such employee is not less than the greater
of—</text>
<subitem id="H20EA5E5211EE43A0A0AB1B8E737E0086"><enum>(AA)</enum><text>the rate of
benefit accrual that would have been applied to the employee under the benefit
formula in effect on July 1, 2009, disregarding any amendments to the plan
adopted after June 30, 2009, or</text>
</subitem><subitem id="H1DD08842E7C845BFBCD0812245303EFA"><enum>(BB)</enum><text>the rate of
benefit accrual that would have applied to the employee under the benefit
formula in effect as of the last date prior to the effective date of any plan
amendment adopted prior to July 1, 2009, that ceased providing benefit accruals
based on additional service credit with respect to such employee, or</text>
</subitem></item><item commented="no" id="H9A3D3999429A4404A5E45DE5E6A9012F"><enum>(bb)</enum><text display-inline="yes-display-inline">the target normal cost (without regard to
plan administrative expenses) for such plan year with respect to such employees
is at least 3 percent of the aggregate compensation (as defined in section
415(c)(3)) of such employees for such plan year.</text>
</item><continuation-text continuation-text-level="subclause">Solely for
purposes of this paragraph, target normal cost shall be determined by using 5
percent in lieu of the interest rate applicable under subsection (h) and by
using the mortality tables described in subsection (h)(3)(A).</continuation-text></subclause></clause><clause id="HFDA1748F0DCF4FAA8DCCD7E61CF74450"><enum>(iii)</enum><header>Defined
contribution plan</header>
<subclause id="HF92C4EBAB8E54DEBB3A9596F461FEB45"><enum>(I)</enum><header>In
general</header><text>A defined benefit plan is described in this clause
if—</text>
<item id="H5FE77AE5C5FA43F9B1D90180D100CFF4"><enum>(aa)</enum><text>the
defined benefit plan satisfies clause (ii) except with respect to employees
whose failure to accrue a minimum benefit is attributable to a plan amendment
adopted prior to July 1, 2009, and</text>
</item><item id="H48C89832048C42DCA2C52E85E5263274"><enum>(bb)</enum><text>the
plan sponsor (or any member of such sponsor’s controlled group) maintains a
defined contribution plan under which allocations are made on behalf of each
employee whose failure to accrue a benefit under the defined benefit plan
causes the defined benefit plan not to be described in clause (ii).</text>
</item></subclause><subclause id="H06D8F964A1BB42498BA30874BE9DBACE"><enum>(II)</enum><header>Minimum
allocations</header><text>Such allocations shall not be less than 3 percent of
an employee’s compensation (as determined in accordance with section 414(s)). A
defined contribution plan shall not fail to satisfy the requirements of this
clause solely by reason of the failure to make allocations on behalf of one or
more highly compensated employees (as defined in section 414(q)).</text>
</subclause><subclause id="H8B1DCB3B0E7449F397583DB1B1DAFEF2"><enum>(III)</enum><header>Allocations
taken into account</header><text>For purposes of this clause, only the
following types of allocations may be taken into account:</text>
<item id="HC9B0027357184D0AA9F6E934AE2179EF"><enum>(aa)</enum><text>Employer
contributions or forfeitures allocated without regard to whether an employee
makes an elective contribution or an employee contribution.</text>
</item><item id="HCA2AE9F943734628BB1FD245E9462140"><enum>(bb)</enum><text>In
the case of the first plan year ending after June 30, 2009, matching
contributions (as defined in section 401(m)(4)(A)).</text>
</item></subclause></clause><clause id="H2CB0E942D04344CA8A137DF49D8FB145"><enum>(iv)</enum><header>Nonqualified
plan</header>
<subclause id="H9B060C339CC64FE5B1E3F300F9E67025"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">A defined benefit
plan is described in this clause if no key employee (as defined in section
416(i) without regard to paragraph (5) thereof) accrues any new benefits for
the plan year under any nonqualified deferred compensation plan (as defined in
section 409A(d)) maintained by the sponsor of the defined benefit plan or by
any member of such sponsor’s controlled group.</text>
</subclause><subclause id="H523BC919080142A78ACDB13E81EB0716"><enum>(II)</enum><header>Revocation of
certain elections</header><text>The Secretary shall provide rules under section
409A under which elections to defer compensation made prior to the date of
enactment of this clause may be revoked by an employee within 180 days after
the date of enactment of this clause, but only to the extent that, pursuant to
this clause, such elections could otherwise cause a failure of the employee
to—</text>
<item id="HE5C92D97B8634AF8AF54E369EA1E2A19"><enum>(aa)</enum><text>earn compensation
under an arrangement that, but for the election, is not a nonqualified deferred
compensation plan (as defined in section 409A(d)), and</text>
</item><item id="H142369BEA6D34D678A0169F2E7A72B19"><enum>(bb)</enum><text>earn compensation
that is not payable to the employee in another form or under a different
arrangement.</text>
</item></subclause></clause><clause id="H79D3E800D9034AD6BE30332BC42058F3"><enum>(v)</enum><header>Multiple
employer plans</header><text>In the case of a defined benefit plan described in
section 413(c)(4)(B), such plan shall be treated as an active plan if such plan
satisfies clause (ii), (iii), or (iv) with respect to at least 85 percent of
the employers participating in such plan. In applying the 85 percent
requirement, different employers may satisfy different clauses.</text>
</clause><clause id="HFF3E05E8ED1D4116B9475E2CDD25455D"><enum>(vi)</enum><header>Controlled
group</header><text>For purposes of this paragraph, the term <term>controlled
group</term> means all employers treated as a single employer pursuant to
subsections (b) and (c) of section
414.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H02AFC3CFC43B45218748DFBE08AFE2CB"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (1) of section 430(c) of such Code is amended
by striking <quote>the shortfall amortization bases for such plan year and each
of the 6 preceding plan years</quote> and inserting <quote>any shortfall
amortization base which has not been fully amortized under this
subsection</quote>.</text>
</paragraph><paragraph id="HDEB0D70CB1F04B119BF68D63CD1A6BB3"><enum>(3)</enum><header>Amendment to
section 409A</header><text>Paragraph (3) of section 409A(a) of the Internal
Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4B3D3091F40C4590AA50C4F6CE4C9941" style="OLC">
<paragraph id="HDFE6B23F5DE947B1B52A05B200CD3A31"><enum>(3)</enum><header>Acceleration of
benefits</header>
<subparagraph id="HCC9F9EAB532745F0980BF0E9E2DA0F6B"><enum>(A)</enum><header>In
general</header><text>The requirements of this paragraph are met if the plan
does not permit the acceleration of the time or schedule of any payment under
the plan, except as provided in regulations by the Secretary. The requirements
of this paragraph shall not be treated as satisfied if the plan makes any
payment described in subparagraph (B) or (C).</text>
</subparagraph><subparagraph id="H7F10A6B020C14C02B30104FA33E75C2B"><enum>(B)</enum><header>Excess payments
for certain adjusted funding target attainment percentages by active
plan</header><text display-inline="yes-display-inline">A payment is described
in this subparagraph if—</text>
<clause id="H6E7619B337FF4BE0B5ABA92329E7A2C8"><enum>(i)</enum><text display-inline="yes-display-inline">such payment is made during a year in which
a defined benefit plan maintained by the employer sponsoring a nonqualified
deferred compensation plan is required to be an active plan under section
430(c)(2)(E) or section 107(e) of the Pension Protection Act of 2006, and such
defined benefit plan has not otherwise failed to be an active plan in such plan
year or any prior plan year,</text>
</clause><clause id="H1CEBA649867E4D879ABC69D21989F704"><enum>(ii)</enum><text>such defined
benefit plan is not described in clause (ii) or (iii) of section 430(c)(2)(G)
(modified, if applicable by section 107(f)(5) of the Pension Protection Act of
2006),</text>
</clause><clause id="H51E0EF34E94D4EFEBCCBD11C10E28918"><enum>(iii)</enum><text display-inline="yes-display-inline">such defined benefit plan is described in
paragraph (1) or (3) of section 436(d)(or would be if section 430(g)(3)(C) did
not apply), and</text>
</clause><clause id="H2E605805C3A44ADA99A984FDF8AF1628"><enum>(iv)</enum><text>the nonqualified
deferred compensation plan makes any payment in excess of the amounts that
would be permitted if the requirements of such paragraph (1) or (3), as
applicable, applied to such plan.</text>
</clause><continuation-text continuation-text-level="subparagraph">In the
case of a defined benefit plan to which section 107 of the Pension Protection
Act of 2006 applies, clauses (iii) and (iv) shall apply based on rules similar
to the rules of section 436, as prescribed by the Secretary, except that the
parenthetical regarding section 430(g)(3)(C) shall not apply. Under rules
prescribed by the Secretary, a plan shall not fail to satisfy the requirements
of this subsection solely by reason of a modification with respect to the time
and form of distribution that is consistent with the requirements of this
subparagraph.</continuation-text></subparagraph><subparagraph id="H8E536341D6754652BA236EDC657C6154"><enum>(C)</enum><header>Excess payments
by reason of certain interest rates and mortality assumptions</header><text>A
payment is described in this subparagraph if—</text>
<clause id="H583693CCE9F540F880A1F18F7A8DA796"><enum>(i)</enum><text>the requirements
of clauses (i) and (ii) of subparagraph (B) are satisfied, and</text>
</clause><clause id="HEA00BAF9F5C242E49EB04821B4C0F091"><enum>(ii)</enum><text display-inline="yes-display-inline">the nonqualified deferred compensation plan
makes any payment in excess of the amount that would be payable if such plan
used the interest rate and mortality assumptions from the defined benefit plan
described in section 401(a) that would create the smallest payments, determined
on a present value basis using the interest rate and mortality assumptions
described in section 430(h).</text>
</clause><continuation-text continuation-text-level="subparagraph">For
purposes of this subparagraph, all defined benefit plans maintained by the
employer shall be taken into
account.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE5CD4511591D471DB6768FF637EE1EC7"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2007.</text>
</subsection></section><section id="H51075E0034F04284AA1F1EAA22DF7D56"><enum>102.</enum><header>Expansion of
corridor within which single-employer defined benefit plans are allowed to
average asset values</header>
<subsection id="H82D036B6C8CC4391978F2C35639BF002"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Paragraph (3) of section 303(g) of the Employee Retirement
Income Security Act of 1974 is amended by adding at the end the following new
subparagraphs:</text>
<quoted-block id="H207BCF07C2894DC686C2BCCD0DF63C7B" style="OLC">
<subparagraph id="HD09097420638473DAA6B27C1FC362D67"><enum>(C)</enum><header>Special
rule</header><text>In the case of any applicable plan year, subparagraph
(B)(iii) shall be applied—</text>
<clause id="H8EC5A0E27B21489ABB18D0610B193EE3"><enum>(i)</enum><text>by
substituting <quote>80 percent</quote> for <quote>90 percent</quote>,
and</text>
</clause><clause id="H433DAD8E8A8A4132BC89AD63EC36F5C1"><enum>(ii)</enum><text>by substituting
<quote>120 percent</quote> for <quote>110 percent</quote>.</text>
</clause></subparagraph><subparagraph id="H752D3A20EAD34FD6A87A5E6145E81FCD"><enum>(D)</enum><header>Applicable plan
year</header><text>For purposes of this paragraph, the term <term>applicable
plan year</term> means—</text>
<clause id="H3FF056E43BED41ACAEEEB46E7706A87B"><enum>(i)</enum><text>except as provided
in clauses (ii) and (iii), any plan year beginning in 2009 or 2010,</text>
</clause><clause id="HE9E46938E0C042EEB9903887BDDC4DCD"><enum>(ii)</enum><text>in the case of a
plan with a plan year beginning after October 31 and before January 1, any plan
year beginning in 2008 or 2009, and</text>
</clause><clause id="H124DF897A1964D1A994C477E13A56237"><enum>(iii)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2008 or
2009.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF21980FD5C0D4A718C14BCF9159D05E4"><enum>(b)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Paragraph (3) of section 430(g) of
the Internal Revenue Code of 1986 is amended by adding at the end the following
new subparagraphs:</text>
<quoted-block id="H17C414BD03C2459AA15BDF4813642E04" style="OLC">
<subparagraph id="H5F67F7FE765F42E1BCCA590069E9CD67"><enum>(C)</enum><header>Special
rule</header><text>In the case of any applicable plan year, subparagraph
(B)(iii) shall be applied—</text>
<clause id="H0AB355E60FF8455B91DE70EACD8688AF"><enum>(i)</enum><text>by
substituting <quote>80 percent</quote> for <quote>90 percent</quote>,
and</text>
</clause><clause id="HE13ABF2B5CE84BF49D6FD23163D29922"><enum>(ii)</enum><text>by substituting
<quote>120 percent</quote> for <quote>110 percent</quote>.</text>
</clause></subparagraph><subparagraph id="HC6388EF25CC24701B2790CDF8204CBE2"><enum>(D)</enum><header>Applicable plan
year</header><text>For purposes of this paragraph, the term <term>applicable
plan year</term> means—</text>
<clause id="H20EC31C70D944CE98DC3D29A19F05CA3"><enum>(i)</enum><text>except as provided
in clauses (ii) and (iii), any plan year beginning in 2009 or 2010,</text>
</clause><clause id="H415B63F371AA451295F0EC49B2DE9061"><enum>(ii)</enum><text>in the case of a
plan with a plan year beginning after October 31 and before January 1, any plan
year beginning in 2008 or 2009, and</text>
</clause><clause id="H0EDCA4B974104A5CAD64AC83DBB939E4"><enum>(iii)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2008 or
2009.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDABFBBB0E2C1420C92C4A357092B9D9D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after December 31, 2007.</text>
</subsection></section><section id="HCED3D2E5446640A58025878FD5C41B39"><enum>103.</enum><header>Lookback for
benefit accrual restriction</header>
<subsection id="H1BF174894FF64085AFC04D4E24000AE6"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Subsection (g) of section 206 of the Employee Retirement
Income Security Act of 1974 is amended by adding at the end thereof the
following:</text>
<quoted-block id="H7AD9237E6A5C4ED0B331C8E6C3F35CF0" style="OLC">
<paragraph id="HB822B3A53BE045429D0D1E297FA41694"><enum>(12)</enum><header>Special rule
for certain years</header><text display-inline="yes-display-inline">For
purposes of paragraph (4) only—</text>
<subparagraph id="H28FF5CB0AFD247AEAB1EBE66BAA2E285"><enum>(A)</enum><header>In
general</header><text>For plan years beginning after October 31, 2008, and
before November 1, 2010, the adjusted funding target attainment percentage of a
plan for purposes of paragraph (4) shall be the greater of—</text>
<clause id="H4E1C622B3CEC4713A0BBBC4729F9DCCC"><enum>(i)</enum><text>such percentage,
as determined without regard to this paragraph, or</text>
</clause><clause id="H1392118243B64BC09B0EE3EEE658AF0A"><enum>(ii)</enum><text>the adjusted
funding target attainment percentage for such plan for the plan year beginning
after October 31, 2007, and before November 1, 2008, as determined under rules
prescribed by the Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph id="H5DB5C1EA970D4EC4AE280F151D7CD7F8"><enum>(B)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year—</text>
<clause id="H52E4831A1B4E41599C5EA76B64BAB487"><enum>(i)</enum><text>subparagraph (A)
shall apply to plan years beginning after December 31, 2007, and before January
1, 2010, and</text>
</clause><clause id="HEE294F0B61494E9EB0200DE696BB9154"><enum>(ii)</enum><text>subparagraph
(A)(ii) shall apply based on the last plan year beginning before November 1,
2007, as determined under rules prescribed by the Secretary of the
Treasury.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H57FAC4E83B614AA586C0C5D20902BC99"><enum>(b)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Section 436 of the Internal Revenue
Code of 1986 is amended by adding the following at the end thereof:</text>
<quoted-block id="H4ABCF3E55F674092944A69C65CBA0953" style="OLC">
<subsection id="HECC70808309C488F899AD440F27A42F6"><enum>(n)</enum><header>Special rule for
certain years</header><text display-inline="yes-display-inline">For purposes of
subsection (e) only—</text>
<paragraph id="H937B0F781B3C49DE99B75059ACFE4073"><enum>(1)</enum><header>In
general</header><text>For plan years beginning after October 31, 2008, and
before November 1, 2010, the adjusted funding target attainment percentage of a
plan for purposes of subsection (e) shall be the greater of—</text>
<subparagraph id="H6331767D5B274B0291E8988410337FDB"><enum>(A)</enum><text>such percentage,
as determined without regard to this subsection, or</text>
</subparagraph><subparagraph id="H63CA2F4F56A243C5B99D8D2289F1EAB6"><enum>(B)</enum><text>the adjusted
funding target attainment percentage for such plan for the plan year beginning
after October 31, 2007, and before November 1, 2008, as determined under rules
prescribed by the Secretary.</text>
</subparagraph></paragraph><paragraph id="HD18688CF30AD4C94B07AE0CBCD80ADBB"><enum>(2)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year—</text>
<subparagraph id="HC807F1FADFCB486088DACEE4852460E8"><enum>(A)</enum><text>paragraph (1)
shall apply to plan years beginning after December 31, 2007, and before January
1, 2010, and</text>
</subparagraph><subparagraph id="H7389672515C44EBABA3072AE17F573F5"><enum>(B)</enum><text>paragraph (1)(B)
shall apply based on the last plan year beginning before November 1, 2007, as
determined under rules prescribed by the
Secretary.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H77D2A38F113D4160A836A516F887EAB1"><enum>(c)</enum><header>Interaction with
WRERA rule</header><text>Section 203 or the Worker, Retiree, and Employer
Recovery Act of 2008 shall apply to a plan for any plan year in lieu of the
amendments made by this section only to the extent that such section produces a
higher adjusted funding target attainment percentage for such plan for such
year. In all other cases, such section shall not be applicable to any
plan.</text>
</subsection><subsection id="H65B63A2429B549AC8723F50AA2A35462"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H9080B9BF9FC849099910C37F4459B47D"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to plan years beginning after October 31,
2008.</text>
</paragraph><paragraph id="HBB52B5D329014B30BCE097B0F14BC662"><enum>(2)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year, the amendments made by this section shall apply
to plan years beginning after December 31, 2007.</text>
</paragraph></subsection></section><section id="HCBCC32AE27764CBFB9D95DA41810B705"><enum>104.</enum><header>Lookback for
credit balance rule</header>
<subsection id="H78854E6DA26D4B5B80838772C489076A"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Paragraph (3) of section 303(f) of the Employee Retirement
Income Security Act of 1974 is amended by adding the following at the end
thereof:</text>
<quoted-block id="H4DF57E5A6DAA4F0381E706106DAF67CA" style="OLC">
<subparagraph id="H20B0281CA5A047B6894CC02ED78B5ABD"><enum>(D)</enum><header>Special rule for
certain years</header>
<clause id="H42FCE435209B413C9F3A881B2887DB30"><enum>(i)</enum><header>In
general</header><text>For purposes of applying subparagraph (C) for plan years
beginning after October 31, 2009, and before November 1, 2011, the ratio
determined under such subparagraph for the preceding plan year shall be the
greater of—</text>
<subclause id="HD62AD6B352B142F7B94063B402BAB5EC"><enum>(I)</enum><text>such ratio, as
determined without regard to this subparagraph, or</text>
</subclause><subclause id="H9A8931589E004736896EA3D0AC57A9A6"><enum>(II)</enum><text>the ratio for
such plan for the plan year beginning after October 31, 2007, and before
November 1, 2008, as determined under rules prescribed by the Secretary of the
Treasury.</text>
</subclause></clause><clause id="H1B37708D194A4390821DB9A742B9B216"><enum>(ii)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year—</text>
<subclause id="H365D951CC6934509A9D7D0D5F664E7A8"><enum>(I)</enum><text>clause (i) shall
apply to plan years beginning after December 31, 2008, and before January 1,
2011, and</text>
</subclause><subclause id="H888D0CBE318044D092D30C1A46FA1BCA"><enum>(II)</enum><text>clause (i)(II)
shall apply based on the last plan year beginning before November 1, 2007, as
determined under rules prescribed by the Secretary of the
Treasury.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA6BA0CA5C29947DBA75E10D4D13FF7E9"><enum>(b)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Paragraph (3) of section 430(f) of
the Internal Revenue Code of 1986 is amended by adding the following at the end
thereof:</text>
<quoted-block id="H5024AA51068F45A99B5BE41FD54FB4B8" style="OLC">
<subparagraph id="HA1CED1A03956450D9380B82831A4C4BF"><enum>(D)</enum><header>Special rule for
certain years</header>
<clause id="H4D608B7756F94C54ACB1F3D5177D5FFC"><enum>(i)</enum><header>In
general</header><text>For purposes of applying subparagraph (C) for plan years
beginning after October 31, 2009, and before November 1, 2011, the ratio
determined under such subparagraph for the preceding plan year of a plan shall
be the greater of—</text>
<subclause id="HFDC93C4583DD45598510B1549AEE3756"><enum>(I)</enum><text>such ratio, as
determined without regard to this subsection, or</text>
</subclause><subclause id="H105219F173944B51B25CD991EFA6FF1B"><enum>(II)</enum><text>the ratio for
such plan for the plan year beginning after October 31, 2007 and before
November 1, 2008, as determined under rules prescribed by the Secretary.</text>
</subclause></clause><clause id="HE2A780D5A67E46D7A4CA87E52A3379A1"><enum>(ii)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year—</text>
<subclause id="HE85C77A0DB774DDBB21339F56BB28EA1"><enum>(I)</enum><text>clause (i) shall
apply to plan years beginning after December 31, 2007, and before January 1,
2010, and</text>
</subclause><subclause id="H3BDFFA9DC7AC42EE93E6D163BEEF9D6E"><enum>(II)</enum><text>clause (i)(II)
shall apply based on the last plan year beginning before November 1, 2007, as
determined under rules prescribed by the
Secretary.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDFA6529ED10945EE8F46F69F51B14C2A"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H252FC464D9A3443BBF7562E4AFE2EB91"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to plan years beginning after October 31,
2009.</text>
</paragraph><paragraph id="H02C6151AB6754CD58D63CD94FD6FC77A"><enum>(2)</enum><header>Special
rule</header><text>In the case of a plan for which the valuation date is not
the first day of the plan year, the amendments made by this section shall apply
to plan years beginning after December 31, 2008.</text>
</paragraph></subsection></section><section id="H19C15C6680E84935B410974627A560E2"><enum>105.</enum><header>Clarification
of treatment of expenses</header>
<subsection id="HA4B307DA971B43D487B52921FD002D6B"><enum>(a)</enum><header>Amendments to
ERISA</header>
<paragraph id="H81675B194257413A9BE346A6D5396925"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 303(b)(1)(A) of the Employee
Retirement Income Security Act of 1974 is amended by striking
<quote>plan-related expenses</quote> and inserting <quote>plan-related
administrative expenses</quote>.</text>
</paragraph><paragraph id="HACF9A1FD8AB34E4E80AAFF1966D1C12E"><enum>(2)</enum><header>Conforming
amendment</header><text>Subclause (II) of section 303(i)(2)(A)(i) of such Act
is amended by striking <quote>plan-related expenses</quote> and inserting
<quote>plan-related administrative expenses</quote>.</text>
</paragraph></subsection><subsection id="H00E7882F44354791B04CD59E86B5FE70"><enum>(b)</enum><header>Amendments to
INTERNAL REVENUE CODE OF 1986</header>
<paragraph id="H0A58329612C3442F93A0D87068537D59"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 430(b)(1)(A) of the Internal
Revenue Code of 1986 is amended by striking <quote>plan-related
expenses</quote> and inserting <quote>plan-related administrative
expenses</quote>.</text>
</paragraph><paragraph id="H932F65ABB0FA4032B8564EC4055BF482"><enum>(2)</enum><header>Conforming
amendment</header><text>Subclause (II) of section 430(i)(2)(A)(i) of such Code
is amended by striking <quote>plan-related expenses</quote> and inserting
<quote>plan-related administrative expenses</quote>.</text>
</paragraph></subsection><subsection id="HCA203FD38D344EC2911F5FF8D8F805EE"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
included in paragraphs (1)(A), (1)(F)(i), (2)(A), and (2)(F)(i) of section
101(b) of the Worker, Retiree, and Employer Recovery Act of 2008.</text>
</subsection></section><section id="H479975BAE9604307B06FF7E6A7E4532C"><enum>106.</enum><header>Information
reporting</header>
<subsection id="HE5C625DA8AF846C5A763D524B5E598C6"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 4010(b) of the Employee
Retirement Security Act of 1974 is amended by striking <quote>80</quote> and
inserting <quote>90</quote>.</text>
</subsection><subsection id="HF4AEE22DD33C48E882D38286252A297C"><enum>(b)</enum><header>Funding target
attainment percentage</header><text>Subparagraph (B) of section 4010(d)(2) of
such Act is amended by striking <quote>303(d)(2).</quote> and inserting
<quote>303(d)(2), without regard to the reduction under section
303(f)(4)(B).</quote>.</text>
</subsection><subsection commented="no" id="HD6559804F48F41438EAF0949F7B9FA10"><enum>(c)</enum><header>Confidentiality</header><text>Subsection
(c) of section 4010 of such Act is amended—</text>
<paragraph commented="no" id="H39D4DFCC18804096B9A4963993ADFC3F"><enum>(1)</enum><text>by striking
<quote>and no such information or documentary material may be made
public,</quote>, and</text>
</paragraph><paragraph commented="no" id="HDB3BBB758DF545D4B8CFF0AB9928B169"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="yes-display-inline" id="HE4338FCD38DA4A86A317AAD90742260F" style="OLC">
<text>All parties, governmental or
otherwise, receiving the information (or summary report of such information)
required to be provided under this section shall be required
to—</text><paragraph commented="no" id="H39876D0D7A9D430EA9C15C17AFF65D01"><enum>(1)</enum><text display-inline="yes-display-inline">ensure that the information received will
be kept confidential,</text>
</paragraph><paragraph commented="no" id="HF24A2D705ECB4B89BA9AC138E3ECDB81"><enum>(2)</enum><text>use the
information only for the purpose for which it was requested, and</text>
</paragraph><paragraph commented="no" id="H462C480089224F8CAAAA45E15C6ED191"><enum>(3)</enum><text>not further
disclose the information except to accomplish that purpose, unless a separate
consent from the taxpayer is obtained.</text>
</paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">Such
requirements shall not apply to information provided under this section that is
otherwise publicly available. The corporation shall notify each person
providing information under this section of any public disclosure of such
information not permitted by this subsection within a reasonable time of such
disclosure becoming known to the corporation. If any party, governmental or
otherwise, makes an unauthorized disclosure, the person required to provide
such information under this section may bring suit against such party in
Federal district court. No liability results from a disclosure based upon a
good faith, but erroneous, interpretation of this section. Upon a finding of a
liability, such person can recover an amount not to exceed $100,000 per act of
unauthorized disclosure plus reasonable attorney fees. The person shall have
two years from the date of discovery of the unauthorized disclosure to bring
suit.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H69FC7BC43DEF46209B39F31BA6F29922"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HB81D598D32474056A0D4F20139FD538E"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to plan years beginning after December 31,
2009.</text>
</paragraph><paragraph id="H682C0166EBCE4427B2ACCD87845D3EA4"><enum>(2)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">The amendment made by subsection (c) shall
take effect on the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="H49F6BEDC75CA4C558DB3565099B39EF4"><enum>107.</enum><header>Benefit
restriction effective date for collectively bargained plans</header>
<subsection id="HE133F86042814A028BD03388C22EE003"><enum>(a)</enum><header>Amendments with
respect to ERISA</header>
<paragraph id="H3C8E3459F6FD4FD9842C8C1800C2A7F1"><enum>(1)</enum><header>Plan
amendments</header><text>Paragraph (2) of section 103(c) of the Pension
Protection Act of 2006 is amended—</text>
<subparagraph id="H9199851C41E544A687E585445998183C"><enum>(A)</enum><text>by striking
<quote>In the case</quote> and inserting <quote>Except as provided in paragraph
(3), in the case</quote>, and</text>
</subparagraph><subparagraph id="H1DDA924F5A1F4E2D8E0352A8F6D5B8F4"><enum>(B)</enum><text>by striking
<quote>the amendments made by this section</quote> and inserting <quote>section
206(g)(2) of the Employee Retirement Income Security Act of 1974 (and other
provisions of such section 206(g) to the extent that they apply to such section
206(g)(2)), as added by this section,</quote>.</text>
</subparagraph></paragraph><paragraph id="HADD5E7024B1440C4BFF3746DF42638BB"><enum>(2)</enum><header>Other benefit
restrictions</header>
<subparagraph id="HF8F089A47C94491DBB424D549BED8BD"><enum>(A)</enum><header>In
general</header><text>Subsection (c) of section 103 of the Pension Protection
Act of 2006 is amended by adding at the end thereof the following:</text>
<quoted-block id="H36E99A9660CF40329C44E924C664D617" style="OLC">
<paragraph id="H4682874EF9BC40E392FDBDA24B251F36"><enum>(3)</enum><header>Collective
bargaining delay except regarding certain plan amendments</header>
<subparagraph id="H4CE2C57DACF64C5C892C91935C520987"><enum>(A)</enum><header>In
general</header><text>In the case of a plan maintained pursuant to 1 or more
collective bargaining agreements between employee representatives and 1 or more
employers, the amendments made by this section shall apply to plan years
beginning after December 31, 2011, except that paragraph (2) shall apply to
plan amendments made pursuant to a collective bargaining agreement ratified
after the date of introduction of the <short-title>Preserve Benefits and Jobs Act of
2009</short-title>.</text>
</subparagraph><subparagraph id="HAEA0576A1A9E461792D0612E35003065"><enum>(B)</enum><header>Transition
rule</header>
<clause id="H54BD96CC41014E7A964EF8280024DE4B"><enum>(i)</enum><text display-inline="yes-display-inline">In the case of a plan described in clause
(ii), such plan shall not be required to comply with this section and the
amendments made by this section until the date that is 60 days after the date
of the enactment of this paragraph, but such a plan may comply on any otherwise
permitted earlier date.</text>
</clause><clause id="H29833A9776F34B75ACB2F1BBF69B4F57"><enum>(ii)</enum><text>A
plan is described in this clause if a limit on benefits or benefit accruals has
been or is, pursuant to section 206(g) of the Employee Retirement Income
Security Act of 1974 and section 436 of the Internal Revenue Code of 1986, in
effect with respect to such plan as of the date of the enactment of this
paragraph.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H834F49DDB9524638B2DBC747EEDB37F5"><enum>(3)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">The heading of
paragraph (2) of section 103(c) of the Pension Protection Act of 2006 is
amended to read as follows: <quote><header-in-text level="paragraph" style="OLC">Collective bargaining exception regarding certain plan
amendments</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H47C024B23593428CB6C1C414F51F49D6"><enum>(b)</enum><header>Amendments with
respect to INTERNAL REVENUE CODE OF 1986</header>
<paragraph id="H1F73710BBCBF4161AF007500CC3EC641"><enum>(1)</enum><header>Plan
amendments</header><text>Paragraph (2) of section 113(b) of the Pension
Protection Act of 2006 is amended by—</text>
<subparagraph id="H82595AAB8EF94FD3980E3C53A23A500C"><enum>(A)</enum><text>striking <quote>In
the case</quote> and inserting <quote>Except as provided in paragraph (3), in
the case</quote>, and</text>
</subparagraph><subparagraph id="HAC8452F1102A417CB286E1116A25B747"><enum>(B)</enum><text>striking
<quote>the amendments made by this section</quote> and inserting <quote>section
436(c) of the Internal Revenue Code of 1986 (and other provisions such section
436 to the extent that they apply to such section 436(c)), as added by this
section,</quote>.</text>
</subparagraph></paragraph><paragraph id="H60A212BA0BD54558A22E854822D3C459"><enum>(2)</enum><header>Other benefit
restrictions</header>
<subparagraph id="H4DB1DB3D16794684A740705E009F5BB9"><enum>(A)</enum><header>In
general</header><text>Subsection (b) of section 113 of the Pension Protection
Act of 2006 is amended by adding at the end thereof the following:</text>
<quoted-block id="HF07713CD976B4165BA3DA0B1EDA44B07" style="OLC">
<paragraph id="H590C3A66220C4428ACA2C2C4659CF598"><enum>(3)</enum><header>Collective
bargaining delay except regarding certain plan amendments</header>
<subparagraph id="HCEF81A419B014684B874B4C50001D700"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a plan
maintained pursuant to 1 or more collective bargaining agreements between
employee representatives and 1 or more employers, the amendments made by this
section shall apply to plan years beginning after December 31, 2011, except
that paragraph (2) shall apply to plan amendments made pursuant to a collective
bargaining agreement ratified after the date of introduction of the
<short-title>Preserve Benefits and Jobs Act of
2009</short-title>.</text>
</subparagraph><subparagraph id="H31F295CB771D44F193B7B0BF63E7907F"><enum>(B)</enum><header>Transition
rule</header>
<clause id="H4AD9505A6A1C495DB4B76B7F6CABAB0"><enum>(i)</enum><text display-inline="yes-display-inline">In the case of a plan described in clause
(ii), a plan shall not be required to comply with this section and the
amendments made by this section until the date that is 60 days after the date
of the enactment of this paragraph, but such a plan may comply on any otherwise
permitted earlier date.</text>
</clause><clause id="H6AD30E64E8344A65A4003B81CC66C609"><enum>(ii)</enum><text>A
plan is described in this clause if a limit on benefits or benefit accruals has
been or is, pursuant to section 206(g) of the Employee Retirement Income
Security Act of 1974 and section 436 of the Internal Revenue Code of 1986, in
effect with respect to such plan as of the date of the enactment of this
paragraph.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HB48700E44963440FB70798B32EF8EDB"><enum>(3)</enum><header>Conforming
amendment</header><text>The heading of paragraph (2) of section 103(b) of the
Pension Protection Act of 2006 is amended to read as follows:
<quote><header-in-text level="paragraph" style="OLC">Collective bargaining
exception regarding certain plan amendments</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H61CF0203821E4E88BF9755E55074484A"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Except as provided in
the amendments made by this section, the amendments made by this section shall
apply as if included in sections 103(c) and 113(b) of such Act.</text>
</subsection></section><section id="H212B778BE2B84F468F9E4DA6838ED975"><enum>108.</enum><header>Social security
level-income options</header>
<subsection id="H536AF07D8D444EEA9BC66B788AB82D1C"><enum>(a)</enum><header>Amendment to
ERISA</header><text>Subparagraph (E) of section 206(g)(3) of the Employee
Retirement Income Security Act of 1974 is amended by adding at the end thereof
the following:</text>
<quoted-block display-inline="no-display-inline" id="H9FA2AB02D0BC426284E6E9CBBDB9D002" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For
purposes of this paragraph, any stream of payments that is structured to be
similar in amount and duration to social security supplements described in the
last sentence of section 204(b)(1)(G) shall be treated in the same manner as
such
supplements.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H980BA83F41B74AD787A88B6C102BCBC2"><enum>(b)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Paragraph (5) of section 436(d) of
the Internal Revenue Code of 1986 is amended by adding at the end thereof the
following:</text>
<quoted-block display-inline="no-display-inline" id="HE0D01BD1F0B54C02BC58F58264C1B699" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">For
purposes of this subsection, any stream of payments that is structured to be
similar in amount and duration to social security supplements described in the
last sentence of section 411(a)(9) shall be treated in the same manner as such
supplements.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3170134F176845EDBB22F39A03A28A19"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H85141235584E4540B80BB9412F7705F7"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply as if included in sections 103(a) and 113(a)(1) of
the Pension Protection Act of 2006.</text>
</paragraph><paragraph id="H212C485E3DF14C2A9739EF06F0109510"><enum>(2)</enum><header>Transition
rule</header>
<subparagraph id="H4258C964E28A401B8D8F5E4BE4E563D9"><enum>(A)</enum><text>In the case of a
plan described in subparagraph (B), a plan shall not be required to comply with
the amendments made by this section until the date that is 60 days after the
date of enactment of this Act, but such a plan may comply on any otherwise
permitted earlier date.</text>
</subparagraph><subparagraph id="HDFBBED9CF63A44F08160302505409274"><enum>(B)</enum><text display-inline="yes-display-inline">A plan is described in this subparagraph
(B) if a limit on prohibited payments is or has been, pursuant to section
206(g) of the Employee Retirement Income Security Act of 1974 and section 436
of the Internal Revenue Code of 1986, in effect with respect to such plan as of
the date of enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section id="HA7B4C43B4AE7416C955732261AE5494F"><enum>109.</enum><header>PBGC
guarantee</header>
<subsection id="HD52AF2D9D21E49D4A500396411DEC13B"><enum>(a)</enum><header>Guarantee</header><text>Section
4022 of the Employee retirement Income Security Act of 1974 is amended by
striking subsection (g).</text>
</subsection><subsection id="HC996159FB674445D9F477F95036AC3C0"><enum>(b)</enum><header>Allocation of
assets among priority groups</header><text>Section 4044 of such Act is amended
by striking subsection (e).</text>
</subsection><subsection id="HB7DD31B2A3C443BDADF43ED720A8012A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall be as if included
in section 404 of the Pension Protection Act of 2006, except that such
amendments shall not apply to proceedings initiated under title 11, United
States Code, or under any similar Federal law or law of a State or political
subdivision, on or before the date of enactment of this Act.</text>
</subsection></section><section id="HC529464E83FA43B9B681005DC4DBE88C"><enum>110.</enum><header>Application of
extended amortization period to plans subject to prior law funding
rules</header>
<subsection id="HF0DC38C7C6DE4164A7AE03A5BD2B4C18"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title I of the
Pension Protection Act of 2006 is amended by redesignating section 107 as
section 108 and by inserting the following after section 106:</text>
<quoted-block id="H6419D05514054599B8A5F68EF6A4FCA8" style="OLC">
<section id="H6E96C76C73D441C198DC828BF799EA93"><enum>107.</enum><header>Application of
extended amortization periods to plans with delayed effective date</header>
<subsection id="HFA239AD4D3994270B391F00FF9412EFD"><enum>(a)</enum><header>In
general</header><text>In the case of plans to which section 104, 105, or 106 of
this Act apply, section 302 of the Employee Retirement Income Security Act of
1974 and section 412 of the Internal Revenue Code of 1986 (as in effect before
the amendments made by this subtitle and subtitle B) shall apply in the manner
described in this section. All references in this section to <quote>such
Act</quote> or <quote>such Code</quote> shall be to such Act or such Code as in
effect before the amendments made by this subtitle and subtitle B.</text>
</subsection><subsection id="H2E19FB944FFF494D93DD02D12A0193C4"><enum>(b)</enum><header>Application of 2
and 7 rule</header>
<paragraph id="HA58B019E3E054E32818A780FF8DCB961"><enum>(1)</enum><header>In
general</header><text>In the case of an active plan to which this subsection
applies, section 302 of such Act and section 412 of such Code shall apply in
the manner described in this subsection.</text>
</paragraph><paragraph id="HF66340F36A014B109C18D0F6628A1566"><enum>(2)</enum><header>Two year
suspension of deficit reduction contributions for certain
plans</header><text>For purposes of applying section 302(d)(9) of such Act and
section 412(l)(9) of such Code to a plan described in paragraph (1), the funded
current liability percentage for such plan for any applicable plan year shall
be the funded current liability percentage of such plan for the pre-applicable
plan year.</text>
</paragraph><paragraph id="H0CB67747BFBA4762A1BF529641A36BD2"><enum>(3)</enum><header>Calculation of
deficit reduction contribution</header><text>For purposes of applying section
302(d) of such Act and section 412(l) of such Code to a plan to which such
subsections apply (after taking into account paragraph (2)), the applicable
percentage described in section 302(d)(4)(C) of such Act and section
412(l)(4)(C) of such Code shall be the third segment rate described in sections
104(b), 105(b), and 106(b) of this Act, provided that such applicable
percentage shall only apply to the increased unfunded new liability. The
applicable percentage determined without regard to this section shall apply to
the excess of the unfunded new liability over the increased unfunded new
liability.</text>
</paragraph></subsection><subsection id="H1D6C9354FB2946778E421DF921C9D857"><enum>(c)</enum><header>Application of
15-Year amortization</header>
<paragraph id="H31A1A318082A44638142CA866E4C5CE1"><enum>(1)</enum><header>In
general</header><text>In the case of an active plan to which this subsection
applies, section 302 of such Act and section 412 of such Code shall apply in
the manner described in this subsection.</text>
</paragraph><paragraph id="H9ACB9546505F4F2CA1DD6E59E24A0B71"><enum>(2)</enum><header>Calculation of
deficit reduction contribution</header><text>For purposes of applying section
302(d) of such Act and section 412(l) of such Code to a plan described in
paragraph (1), the applicable percentage described in section 302(d)(4)(C) of
such Act and section 412(l)(4)(C) of such Code for any pre-effective date plan
year shall be the ratio of—</text>
<subparagraph id="H56831EB4208C478688D3277F0B614F67"><enum>(A)</enum><text>the annual
installments payable in each year if the increased unfunded new liability for
such plan year were amortized over 15 years, using an interest rate equal to
the third segment rate described in sections 104(b), 105(b), and 106(b) of this
Act, to</text>
</subparagraph><subparagraph id="H89ECEBF58F8145D6AA5FC1759A800BDF"><enum>(B)</enum><text>the increased
unfunded new liability for such plan year.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">However,
such applicable percentage shall only apply to the increased unfunded new
liability. The applicable percentage determined without regard to this section
shall apply to the excess of the unfunded new liability over the increased
unfunded new liability.</continuation-text></paragraph></subsection><subsection id="H10FB9B38AE1A4AEC89511CCDD37B2787"><enum>(d)</enum><header>Election</header><text>The
plan sponsor may, with respect to a plan, elect whether to apply subsection (b)
or subsection (c) or whether neither subsection shall apply. Such election
shall be made at such times, and in such form and manner, as shall be
prescribed by the Secretary of the Treasury, and may be revoked only with the
consent of the Secretary of the Treasury. In the absence of a timely election
regarding which subsection shall apply to a plan, neither subsection shall
apply to such plan.</text>
</subsection><subsection id="H501B9CFFE20B402B8FB6E2E730481265"><enum>(e)</enum><header>Failure To
maintain active plan</header><text>If the minimum contribution required for a
plan to avoid an accumulated funding deficiency under section 302 of such Act
and section 412 of such Code is determined under subsection (b) or (c) for a
plan year, the plan must remain an active plan for the subsequent plan year. If
such plan fails to be an active plan in such plan year, the minimum
contribution requirement to avoid an accumulated funding deficiency shall be
increased by all amounts by which such minimum contribution was reduced by the
application of subsection (b) or (c), plus interest on such amounts at the
third segment rate described in sections 104(b), 105(b), and 106(b) of this
Act. However, any such increase in such minimum contribution shall not require
a contribution to the extent that the contribution would cause the value of
plan assets (determined under section 302(c)(2) of such Act and section
412(c)(2) of such Code) to exceed the current liability of such plan for such
year.</text>
</subsection><subsection id="H7B97CF8FE16C4E88A900B3F09A83D02B"><enum>(f)</enum><header>Definitions</header>
<paragraph id="H0D4D0D0737E44971B9C73393494C7482"><enum>(1)</enum><header>Applicable plan
year</header><text>For purposes of this section, the term <term>applicable plan
year</term> means—</text>
<subparagraph id="H9E6596F796A641B7B52369AB0D2300B1"><enum>(A)</enum><text>except as provided
in subparagraphs (B), (C), and (D), any plan year beginning in 2010 or
2011,</text>
</subparagraph><subparagraph id="H2AB1224902B64E96AB95B011503A1F40"><enum>(B)</enum><text>in the case of a
plan with a plan year beginning after June 30 and before January 1, any plan
year beginning in 2009 or 2010,</text>
</subparagraph><subparagraph id="HB08891217BFB4AA8814973EB00713DD9"><enum>(C)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2009 or 2010, and</text>
</subparagraph><subparagraph id="HE9962365D0F549FFBF6A0F3594A4C7B8"><enum>(D)</enum><text display-inline="yes-display-inline">in the case of a plan to which section 106
of the Pension Protection Act of 2006 applies, subparagraphs (A), (B), and (C)
shall be applied by inserting <quote>2008</quote>, <quote>2009</quote>, or
<quote>2010</quote> for <quote>2009</quote>, <quote>2010</quote>, or
<quote>2011</quote>, respectively, each place such year is referenced.</text>
</subparagraph></paragraph><paragraph id="HC4C3056B5A5D49D4AE95AF86ABA5095B"><enum>(2)</enum><header>Pre-applicable
plan year</header><text display-inline="yes-display-inline">For purposes of
this section, the term <term>pre-applicable plan year</term> means, with
respect to a plan, the second plan year preceding the first applicable plan
year of such plan, except that in the case of a plan described in paragraph
(1)(D), such term means the first plan year preceding the first applicable plan
year of such plan.</text>
</paragraph><paragraph id="HCD016434F28A4F7B8235B87931800FC0"><enum>(3)</enum><header>Pre-effective
date plan year</header><text>For purposes of this section, the term
<term>pre-effective date plan year</term> means, with respect to a plan, any
plan year prior to the first year in which the amendments made by this subtitle
and subtitle B apply to the plan, provided that the first pre-effective date
plan year shall be the first applicable plan year with respect to the
plan.</text>
</paragraph><paragraph id="H9923847FFAF04CC4B1993F16F4000B6D"><enum>(4)</enum><header>Increased
unfunded new liability</header><text display-inline="yes-display-inline">For
purposes of this section, the term <term>increased unfunded new
liability</term> means, with respect to a year, the excess (if any) of the
unfunded new liability over the amount of unfunded new liability determined as
if the value of the plan’s assets determined under subsection 302(c)(2) of such
Act and section 412(c)(2) of such Code equaled the product of the current
liability of the plan for the year multiplied by the funded current liability
percentage of the plan for the pre-applicable plan year.</text>
</paragraph><paragraph id="HA6530C4D51364C3790F8FB71EB76DFA7"><enum>(5)</enum><header>Active
plan</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>active plan</term> shall have the meaning given such
term by section 303(c)(2)(G) of the Employee Retirement Income Security Act of
1974 and in section 430(c)(2)(G) of the Internal Revenue Code of 1986, except
that <term>target normal cost</term> (without regard to plan administrative
expenses) shall be determined as if section 303 of the Employee Retirement
Income Security Act of 1974 and section 430 of the Internal Revenue Code of
1986 applied to such plan with the modification regarding the interest rate
used, as set forth in section 303(c)(2)(G) of the Employee Retirement Income
Security Act of 1974 and in section 430(c)(2)(G) of the Internal Revenue Code
of 1986.</text>
</paragraph><paragraph id="H68CAF665B6154C4A8AC04D1C6D8C237C"><enum>(6)</enum><header>Other
definitions</header><text>For purposes of this section, the terms <term>funded
current liability percentage</term>, <term>unfunded new liability</term>, and
<term>current liability</term> shall have the meanings set forth in section
302(d) of such Act and section 412(l) of such
Code.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H805E97FE3D244D9DB35B473124FF7DA1"><enum>(b)</enum><header>Eligible charity
plans</header><text>Section 104 of the Pension Protection Act of 2006 is
amended by—</text>
<paragraph id="HCCDE2AE940CE4C728886AD995BF14E89"><enum>(1)</enum><text>striking
<quote>eligible cooperative plan</quote> wherever it appears in subsections (a)
and (b) and inserting <quote>eligible cooperative plan or an eligible charity
plan</quote>, and</text>
</paragraph><paragraph id="HDD0348590EAB4DB28C9AF81DC8A9F9AB"><enum>(2)</enum><text>adding at the end
the following new subsection:</text>
<quoted-block id="H163DBF084F334620888C4DDA7EBA021F" style="OLC">
<subsection id="HC1E9300FE48E4704B2F6BDC39FC10ABB"><enum>(d)</enum><header>Eligible charity
plan defined</header><text>For purposes of this section, a plan shall be
treated as an eligible charity plan for a plan year if the plan is maintained
by more than one employer and 100 percent of the employers are described in
section 501(c)(3) of such
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA5C04FC8A0184348887CDE8FDF1C2CEC"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H39454539C5B84563B950C0FF4FFA1C65"><enum>(1)</enum><header>In
general</header><text>The amendment made by subsection (a) shall take effect as
if included in the Pension Protection Act of 2006.</text>
</paragraph><paragraph id="H0D9E0BEA47154B49931941F0ADC9C46E"><enum>(2)</enum><header>Eligible charity
plan</header><text>The amendments made by subsection (b) shall apply to plan
years beginning after December 31, 2008.</text>
</paragraph></subsection></section><section commented="no" id="HF71613B6C64947FBADB068B0B620FA30"><enum>111.</enum><header>Additions to
funding-based limits on benefits and benefits accruals under single-employer
plans</header>
<subsection commented="no" id="H11C671906F5B41F9B44FE63E82849E75"><enum>(a)</enum><header>Amendments to
INTERNAL REVENUE CODE OF 1986</header>
<paragraph id="HC234007A670E4D1197AD2B28B90410AA"><enum>(1)</enum><text>Subsection (c) of
section 436 of the Internal Revenue Code of 1986 is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after paragraph (2) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H694043DB2CCD420A838EDB0011ADAE65" style="OLC">
<paragraph id="HAC1A8BF0BD104DE5BAB029C635FD631F"><enum>(3)</enum><header>Special
limitations on ad hoc amendments</header>
<subparagraph id="H64BE301E2C134536AC4EDE76B5225FFF"><enum>(A)</enum><header>In
general</header><text>No ad hoc amendment to a defined benefit plan which is a
single employer plan which has the effect of increasing liabilities of the plan
by reason of increases in benefits, establishment of new benefits, changing the
rate of benefit accrual, or changing the rate of which benefits become
nonforfeitable may take effect during the plan year if the adjusted funding
target attainment percentage for such plan year is—</text>
<clause id="H768DC66142814A9FA4C2A7814D3CC04C"><enum>(i)</enum><text>less than 120
percent, or</text>
</clause><clause id="H0793F11D5189466CABCD3922B2002F7E"><enum>(ii)</enum><text>would be less
than 120 percent taking into account such amendment.</text>
</clause></subparagraph><subparagraph id="H716E7996613E404AB4E0AB46E8ED59E"><enum>(B)</enum><header>Exemption</header><text>Subparagraph
(A) shall cease to apply with respect to any plan year, effective as of the
first day of the plan year (or if later, the effective date of the amendment),
upon payment by the plan sponsor of a contribution (in addition to any minimum
required contribution under section 430) equal to—</text>
<clause id="H7F1E1B815A894B4C82A2872F2EF4A635"><enum>(i)</enum><text>in
the case of subparagraph (A)(i), the amount of the increase in the funding
target of the plan (under section 430) for the plan year attributable to the
amendment, and</text>
</clause><clause id="H3301B8DF2F224D70B1B7450083C7192C"><enum>(ii)</enum><text>in the case of
subparagraph (A)(ii), the amount sufficient to result in an adjusted funding
target attainment percentage of 120 percent.</text>
</clause></subparagraph><subparagraph id="H712EAE6B4F384157AB51C1A0994DCA5D"><enum>(C)</enum><header>Special
rule</header><text display-inline="yes-display-inline">An ad hoc amendment that
is otherwise permitted to take effect under this subsection may not take effect
unless the plan provides that the accrued pension benefits of any participant
or beneficiary under the plan become nonforfeitable in the same manner which
would be required if the plan had terminated as of the effective date of such
ad hoc amendment. This subparagraph shall not apply to an ad hoc amendment that
takes effect by reason of subparagraph (B)(i).</text>
</subparagraph><subparagraph id="H7E12E03918154F1DBF36152B8711E17"><enum>(D)</enum><header>Ad hoc
amendment</header><text>For purposes of this paragraph, the term <term>ad hoc
amendment</term> means an amendment to a plan which—</text>
<clause id="H403CE3A8FB4B4896B3F64024A6A459E5"><enum>(i)</enum><text>increases the
nonforfeitable benefits payable to one or more participants,</text>
</clause><clause id="H43EB0A496D95402FB2E72089659EA72F"><enum>(ii)</enum><text>applies only to a
subset of the employees otherwise eligible to accrue benefits under the
plan,</text>
</clause><clause id="HD1BEE11950E3451F83A83700E7B2CAC"><enum>(iii)</enum><text>applies by its
terms only to employees who, during a limited period of time, terminate
employment, and</text>
</clause><clause id="HB7C07CB8477143E6A956044EEFF4856F"><enum>(iv)</enum><text>provides that the
increase described in clause (i) is payable in the form of a prohibited payment
(as defined in subsection
(d)(5)).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HC6859421DB8D4E7590E227F5FA6D7CE6"><enum>(2)</enum><text>Paragraph (4) of
section 436(c) of such Code, as redesignated by paragraph (1), is
amended—</text>
<subparagraph id="HCF5267087C5F420D841B4E8A6EDF0CBE"><enum>(A)</enum><text>by inserting
<quote>(A)</quote> before <quote>Paragraph (1)</quote> and moving the text
thereof 2 ems to the right, and</text>
</subparagraph><subparagraph id="H2F28414D02F9464482D1A46F129B0EC3"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF3AB921A1E5743B39409C7BE0FF6D9F4" style="OLC">
<subparagraph commented="no" id="HBB1CDD494D794C7BBE5D7BBFBD4843D1"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (3) shall not apply to any
amendment of a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more
employers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H192DAFFF7640402EB8B89A0EF2EF98B7"><enum>(b)</enum><header>Amendments to
ERISA</header>
<paragraph id="H304DD3337CDA4757BC4964CC62CBF19E"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 206(g) of the
Employee Retirement Income Security Act of 1974 is amended by redesignating
subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B)
the following:</text>
<quoted-block display-inline="no-display-inline" id="HB46B57078FCB40CAA68155E24023F8AB" style="OLC">
<subparagraph id="HB9C43E1E8DA046A59991A1CCFBA99CDD"><enum>(C)</enum><header>Special
limitations on ad hoc amendments</header>
<clause id="H609499ED4F6E480F80A8D8B584947627"><enum>(i)</enum><header>In
general</header><text>No ad hoc amendment to a defined benefit plan which is a
single employer plan which has the effect of increasing liabilities of the plan
by reason of increases in benefits, establishment of new benefits, changing the
rate of benefit accrual, or changing the rate of which benefits become
nonforfeitable may take effect during the plan year if the adjusted funding
target attainment percentage for such plan year is—</text>
<subclause id="H1EFB928181774C1C8653F2B6FA53DA66"><enum>(I)</enum><text>less than 120
percent, or</text>
</subclause><subclause id="H61E63904531A48870070D3D67B0E33D"><enum>(II)</enum><text>would be less than
120 percent taking into account such amendment.</text>
</subclause></clause><clause id="HADBB41E0EDAE4FE6972098A7520095D6"><enum>(ii)</enum><header>Exemption</header><text>Clause
(i) shall cease to apply with respect to any plan year, effective as of the
first day of the plan year (or if later, the effective date of the amendment),
upon payment by the plan sponsor of a contribution (in addition to any minimum
required contribution under section 303) equal to—</text>
<subclause id="HB68604689F37417690E0ADA9007E54AD"><enum>(I)</enum><text>in the case of
clause (i)(I), the amount of the increase in the funding target of the plan
(under section 303) for the plan year attributable to the amendment, and</text>
</subclause><subclause id="H495493C06DAE45C5A79BC1276D9E3BC7"><enum>(II)</enum><text>in the case of
clause (i)(II), the amount sufficient to result in an adjusted funding target
attainment percentage of 120 percent.</text>
</subclause></clause><clause id="H220893F73F4E470BA223B3324E5BD800"><enum>(iii)</enum><header>Special
rule</header><text display-inline="yes-display-inline">An ad hoc amendment that
is otherwise permitted to take effect under this paragraph may not take effect
unless the plan provides that the accrued pension benefits of any participant
or beneficiary under the plan become nonforfeitable in the same manner which
would be required if the plan had terminated as of the effective date of such
ad hoc amendment. This subparagraph shall not apply to an ad hoc amendment that
takes effect by reason of clause (ii)(I).</text>
</clause><clause id="H45EDF4EC7F8F4119AC211806ADEAE53B"><enum>(iv)</enum><header>Ad hoc
amendment</header><text>For purposes of this subparagraph, the term <term>ad
hoc amendment</term> means an amendment to a plan which—</text>
<subclause id="H33AEAF7BD5C449F48EFF36B9EBCE7D33"><enum>(I)</enum><text>increases the
nonforfeitable benefits payable to one or more participants,</text>
</subclause><subclause id="HC6003F1EB4614CFA8402E6F1A4787687"><enum>(II)</enum><text>applies only to a
subset of the employees otherwise eligible to accrue benefits under the
plan,</text>
</subclause><subclause id="HD1D458DEB239488AB9291D40AFA76281"><enum>(III)</enum><text>applies by its
terms only to employees who, during a limited period of time, terminate
employment, and</text>
</subclause><subclause id="HFA046D71DFE84580A4BCD9AB04320053"><enum>(IV)</enum><text>provides that the
increase described in subclause (I) is payable in the form of a prohibited
payment (as defined in paragraph
(3)(E)).</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HA71781C81A124E8C9DBDDB3F3EF3A5C7"><enum>(2)</enum><text>Subparagraph (D)
of section 202(g)(2) of such Act, as redesignated by paragraph (1), is
amended—</text>
<subparagraph id="H1A2DAA43101740E398B5859CDF1AE05B"><enum>(A)</enum><text>by inserting
<quote>(i)</quote> before <quote>Subparagraph (A)</quote> and moving the text
thereof 2 ems to the right, and</text>
</subparagraph><subparagraph id="H322684CD572C49CC904BFF03DF262687"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC144B14954E745B096013F180D8E21C1" style="OLC">
<clause commented="no" id="H458FE1CF4B5640D4889228F852F6E8BA"><enum>(ii)</enum><text display-inline="yes-display-inline">Subparagraph (C) shall not apply to any
amendment of a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more
employers.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HE73A9F9595DA473EBA265B9BFE404D39"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to plan amendments adopted more than 180 days after
the date of the enactment of this Act.</text>
</subsection></section><section id="H3AA84FE35B1345B9ADD32679EF38E0CC"><enum>112.</enum><header>Reportable
events</header>
<subsection id="H2E6C201ED45C413B959367E3BB2FDE9F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 4043 of the
Employee Retirement Income Security Act of 1974 is amended by redesignating
subsection (f) as subsection (g) and by inserting after subsection (e) the
following:</text>
<quoted-block id="HFE3D0261DB0144C78D96C7A410994E66" style="OLC">
<subsection id="HC4F1C461669F4C0FA890C542749EE2F1"><enum>(f)</enum><header>Special
rule</header>
<paragraph id="H6D7CE0822FC44396B0006DB7DBF79DFF"><enum>(1)</enum><header>In
general</header><text>A reportable event described in paragraph (3) of
subsection (c) (without regard to this subsection) shall not be treated as
occurring with respect to a plan for an applicable plan year if—</text>
<subparagraph id="HCFBD4F1A3D674F12B8BBE857CFE3D91"><enum>(A)</enum><text>the number of
employees of the contributing sponsor is at least 80 percent of the number of
employees of the contributing sponsor at the beginning of the plan year, and is
at least 75 percent of the number of employees of the contributing sponsor at
the beginning of the previous plan year,</text>
</subparagraph><subparagraph id="HC8E31108E9194161A07F3406EFCCD177"><enum>(B)</enum><text>the funded vested
benefit percentage (as defined for purposes of subsection (b)(1)(B)) for the
pre-applicable plan year was at least 80 percent, and</text>
</subparagraph><subparagraph id="HD79A6E33109A481FA7114EC46D091B00"><enum>(C)</enum><text>the contributing
sponsor notifies the corporation of the use of the rule described in this
subsection by the date that such contributing <italic></italic>sponsor would
(but for this subsection) be required to notify the corporation of an event
described in subsection (c)(3).</text>
</subparagraph></paragraph><paragraph id="H93F8615F28A547189187DC9B7B29E167"><enum>(2)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="H00022B577526452FA4AFAD39022EF9EF"><enum>(A)</enum><header>Employee</header><text>The
term <term>employee</term> means, in connection with a contributing sponsor, an
employee of the contributing sponsor or of any member of such sponsor’s
controlled group.</text>
</subparagraph><subparagraph id="H4F416DBEE415493A829019A9DDD8D0BE"><enum>(B)</enum><header>Applicable plan
year</header><text>The term <term>applicable plan year</term> means—</text>
<clause id="H7AAB1E8AE20645349FDDDE13CC6991B"><enum>(i)</enum><text>except as provided
in this subparagraph, any plan year beginning in 2010 or 2011,</text>
</clause><clause id="H7B503A631317430880CE2E04280958EC"><enum>(ii)</enum><text>in the case of a
plan with a plan year beginning after October 31 and before January 1, any plan
year beginning in 2009 or 2010, and</text>
</clause><clause id="HD83AFC6F4043484D8BFC6FE618E14979"><enum>(iii)</enum><text>in the case of a
plan for which the valuation date is not the first day of the plan year, any
plan year beginning in 2009 or 2010.</text>
</clause></subparagraph><subparagraph id="H3DF1E96033384299BB00DF8576CEB3A0"><enum>(C)</enum><header>Pre-applicable
plan year</header><text>The term <term>pre-applicable plan year</term> means,
in connection with a plan, the second plan year preceding the first applicable
plan year of such
plan.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9DB291E91CCE4398A981BF8A7DDC4B05"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Multiemployer
Plans</header>
<section id="H16213801C8CF4DF0832FA3FAB8AB6BDC"><enum>201.</enum><header>Adjustments to
funding standard account rules; reporting clarification</header>
<subsection id="H5ADC54F6E08C4C72BDF4EADE8DFCFAFA"><enum>(a)</enum><header>Amortization
Periods</header>
<paragraph id="H9B46415A6922479C94783EEC0ABA9F02"><enum>(1)</enum><header>Amendment to
ERISA</header><text display-inline="yes-display-inline">Section 304(b) of the
Employee Retirement Income Security Act of 1974 is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF1A3F27F7D3B4BD284777A87087B0CD8" style="OLC">
<paragraph id="HDDC7D8ABE16D4556ACAF5906E7C5B826"><enum>(8)</enum><header>Elective special
relief rules</header>
<subparagraph id="HDE1C579A235F4F0D965CB33CAD7113BB"><enum>(A)</enum><header>Plan sponsor
election</header>
<clause id="HB385644CDD7B4C71AC3EDE381B1D4E67"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this subsection, effective with the actuarial valuation for
either of the first two plan years beginning after August 31, 2008, the plan
sponsor of a multiemployer plan that meets the solvency test in subparagraph
(B) may elect to use either the rule in clause (ii) or the rule in clause (iii)
in maintaining its funding standard account.</text>
</clause><clause id="HBF1053400A1C4C249B509B13ACBCB3EC"><enum>(ii)</enum><header>Combined
outstanding balance</header><text>Under this clause, the outstanding balances
of all amounts required to be amortized under both paragraph (2) and paragraph
(3) may be combined into one amount under each such paragraph, to be amortized
in equal annual installments (until fully amortized) over a period of 30 plan
years.</text>
</clause><clause id="HCAC75721ED8B4200A67282C27C5725B5"><enum>(iii)</enum><header>Certain
investment losses</header><text display-inline="yes-display-inline">Under this
clause, the total amount of the net investment losses, if any, incurred in
either or both of the first two plan years ending after August 31, 2008, may be
charged as an item separate from other experience losses and amortized in equal
annual installments (until fully amortized) over a period of 30 plan
years.</text>
</clause></subparagraph><subparagraph id="H8CDF189F4B2A4D1E9E5A8827DEBBE568"><enum>(B)</enum><header>Solvency
test</header><text>An election may be made under this paragraph if the plan
actuary certifies that the plan is projected to have sufficient assets to
timely pay expected benefits and anticipated expenditures over the amortization
period as extended.</text>
</subparagraph><subparagraph id="H89CEFCFCF5D94163BB8CEFEB17C9FFD4"><enum>(C)</enum><header>Restriction on
benefit increases</header><text>In the case of a plan for which a rule
described in subparagraph (A) is elected, in addition to any other applicable
restrictions on benefit increases, an amendment increasing benefits may not go
into effect during the period of two plan years immediately following the plan
year for which the rule is first effective, unless—</text>
<clause id="H15FA3809992D4F9E805486B3D49B1E1E"><enum>(i)</enum><text>the plan actuary
certifies that such increase is paid for out of additional contributions not
allocated to the plan at the time the election was made and the plan’s funded
percentage and projected credit balances for those two plan years are
reasonably expected to be generally at the same levels as they would have been
if the benefit increase had not been adopted, or</text>
</clause><clause id="HB5006CC797374F8293E1D94D978A72D7"><enum>(ii)</enum><text>the amendment is
required as a condition of qualification under part I of subchapter D of
chapter 1 of the Internal Revenue Code of 1986 or to comply with other
applicable
law.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H701B842FE8F44717A2098D38BD6BE6F9"><enum>(2)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text display-inline="yes-display-inline">Section 431(b) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE57D8AF06BBA4E49A3FBA3735B560ECE" style="OLC">
<paragraph display-inline="no-display-inline" id="H476F09E6A12945D5A2DD7B88F92EAF86"><enum>(8)</enum><header>Elective special
relief rules</header>
<subparagraph id="H8EB7E8E79504462AAD71A9818DA0C2CB"><enum>(A)</enum><header>Plan sponsor
election</header>
<clause id="H30494FE3F4FA4B3280D61687654227DD"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this subsection, effective starting with the actuarial
valuation for either of the first two plan years beginning after August 31,
2008, the plan sponsor of a multiemployer plan that meets the solvency test in
subparagraph (B) may elect to use either the rule in clause (ii) or the rule in
clause (iii) in maintaining its funding standard account.</text>
</clause><clause id="H19539FE7FF8A42BBAF66E8F0177D7329"><enum>(ii)</enum><header>Combined
outstanding balance</header><text>Under this clause, the outstanding balances
of all amounts required to be amortized under both paragraph (2) and paragraph
(3) may be combined into one amount under each such paragraph, to be amortized
in equal annual installments (until fully amortized) over a period of 30 plan
years.</text>
</clause><clause id="HFB1A0F9E402F422BA55FE7E9AFC6C279"><enum>(iii)</enum><header>Certain
investment losses</header><text display-inline="yes-display-inline">Under this
clause, the total amount of the net investment losses, if any, incurred in
either or both of the first two plan years ending after August 31, 2008, may be
charged as an item separate from other experience losses and amortized in equal
annual installments (until fully amortized) over a period of 30 plan
years.</text>
</clause></subparagraph><subparagraph id="H1ECD8150671E40E68A28065A3B7EFB3B"><enum>(B)</enum><header>Solvency
test</header><text>An election may be made under this paragraph if the plan
actuary certifies that the plan is projected to have sufficient assets to
timely pay expected benefits and anticipated expenditures over the amortization
period as extended.</text>
</subparagraph><subparagraph id="H6057D2DBAD024FD4AF267B9B1AC7BC05"><enum>(C)</enum><header>Restriction on
benefit increases</header><text>In the case of a plan for which a rule
described in subparagraph (A) is elected, in addition to any other applicable
restrictions on benefit increases, an amendment increasing benefits may not go
into effect during the period of two plan years immediately following the plan
year for which the rule is first effective, unless—</text>
<clause id="H9EA11B472DB641D2A9D4C8CFD8580FBB"><enum>(i)</enum><text>the plan actuary
certifies that such increase is paid for out of additional contributions not
allocated to the plan when the election was made and the plan’s funded
percentage and projected credit balances for those two plan years are
reasonably expected to be generally at the same levels as they would have been
if the benefit increase had not been adopted, or</text>
</clause><clause id="H7DD8987820564A40A614BB11AA8C06E4"><enum>(ii)</enum><text>the amendment is
required as a condition of qualification under part I of subchapter D of
chapter 1 or to comply with other applicable
law.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFC0AFB0C8EC84BE0A206E6BCDAD8BF47"><enum>(b)</enum><header>Automatic
Amortization Extensions</header>
<paragraph id="H03ACFBE12D984928BF91D545F46F0536"><enum>(1)</enum><header>Amendment to
ERISA</header><text>Section 304(d)(1)(A) of the Employee Retirement Income
Security Act of 1974 is amended—</text>
<subparagraph id="HE36AD49BE4FA485C92110ECB4A49FA5C"><enum>(A)</enum><text>by striking
<quote>(not in excess of 5 years)</quote> and inserting <quote>(not in excess
of 10 years)</quote>, and</text>
</subparagraph><subparagraph id="HCA3B332423FC42E38B08CFD38AA6EA4F"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D) and inserting after subparagraph (B) the
following new subparagraph:</text>
<quoted-block id="H29168B2CE64F4DEA949D029667159C58" style="OLC">
<subparagraph id="H5B2E23CFFC7F44C4BE7DB01EA34A46C1"><enum>(C)</enum><header>Deemed
approval</header>
<clause display-inline="no-display-inline" id="HB2D19AA9356748758338CD3B116A87DB"><enum>(i)</enum><header>In
general</header><text>An application under this paragraph shall be deemed
approved unless, within 45 days after it is submitted, the Secretary notifies
the plan sponsor that the actuary has failed to certify to one or more of the
criteria listed in subparagraph (B).</text>
</clause><clause id="H5F76DD241F274024BBE3BF9F49204F77"><enum>(ii)</enum><header>Corrections</header><text>If,
within 30 days after receiving a notice under this subparagraph, the plan
sponsor corrects any omissions identified in the notice under this subparagraph
or otherwise demonstrates that the actuary’s certification satisfies
subparagraph (B), the application shall be deemed
approved.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H68C8F60540974BBB96B344BD41F0CADB"><enum>(2)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Section 431(d)(1)(A) of the
Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="H6FE0E1ED1A324105907391C754DAFC23"><enum>(A)</enum><text>by striking
<quote>(not in excess of 5 years)</quote> and inserting <quote>(not in excess
of 10 years)</quote>, and</text>
</subparagraph><subparagraph id="HF7ABF41B2A5B48E2A4A3083C006905A8"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D) and inserting after subparagraph (B) the
following new subparagraph:</text>
<quoted-block id="HC75ECDC88006448D98EEB6BCA37B4B7A" style="OLC">
<subparagraph id="H9FBF42E0649846188B423AAC696D5C66"><enum>(C)</enum><header>Deemed
approval</header>
<clause display-inline="no-display-inline" id="H7A895F24246145B4AE36A85EDF2B48A4"><enum>(i)</enum><header>In
general</header><text>An application under this paragraph shall be deemed
approved unless, within 45 days after it is submitted, the Secretary notifies
the plan sponsor that the actuary has failed to certify to one or more of the
criteria listed in subparagraph (B).</text>
</clause><clause id="HD843E9FCBE1447EDAB060B82EC7A1BBC"><enum>(ii)</enum><header>Corrections</header><text>If,
within 30 days after receiving a notice under this subparagraph, the plan
sponsor corrects any omissions identified in the notice under this subparagraph
or otherwise demonstrates that the actuary’s certification satisfies
subparagraph (B), the application shall be deemed
approved.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H476E7CA960324F7F8EADD68972929285"><enum>(c)</enum><header>Extended
smoothing period and wider asset valuation corridor for certain losses</header>
<paragraph id="H3A2C6508702D4BA98A2BE89BA3E43D43"><enum>(1)</enum><header>In
general</header>
<subparagraph display-inline="no-display-inline" id="HEB77D69A6E404336A1E8DB4F8C881758"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary of the Treasury shall not
treat the asset valuation method of a multiemployer plan as unreasonable solely
because the plan elects to use either or both of the options described in
subparagraph (B) or (C). A plan may elect to use any or all of such options.
The election of such options shall apply for purposes of sections 431 and 432
of the Internal Revenue Code of 1986.</text>
</subparagraph><subparagraph id="H738DC46750674DCEB37B18CAD99A82BF"><enum>(B)</enum><text>With respect to
net investment losses incurred in either or both of the first two plan years
ending after August 31, 2008, the plan may utilize a smoothing period of not
more than ten years.</text>
</subparagraph><subparagraph id="H2E233742F5B94C8CAF9A0ECFB87E41EC"><enum>(C)</enum><text>For either or both
of the first two plan years beginning after August 31, 2008, the asset value
reflected by the method may not be more than 130 percent of the current fair
market value.</text>
</subparagraph></paragraph><paragraph id="H7CDAAF5B78954536A59FAB13215193D9"><enum>(2)</enum><header>Deemed
approval</header><text>The election by a plan of either or both of the options
described in paragraph (1) shall be deemed approved by the Secretary of the
Treasury under section 412(d)(1) of the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection id="H0D30355067424951B23CE2D25CB0F02C"><enum>(d)</enum><header>Modification of
Certain Amortization Extensions under Prior Law</header><text>Any amortization
extensions under the terms of section 412(e) of the Internal Revenue Code of
1986 (prior to enactment of the Pension Protection Act of 2006) that were
granted to multiemployer plans shall remain in effect notwithstanding the
impact of investment losses incurred by the plans in 2008, 2009 or 2010, unless
the plan sponsor elects otherwise.</text>
</subsection><subsection commented="no" id="H51AF9180A9504FAEB176497AECBFC04C"><enum>(e)</enum><header>Clarification of
multiemployer reporting and disclosure requirements</header><text display-inline="yes-display-inline">Sections 103(f)(2)(C) and 104(d)(1)(D) of
the Employee Retirement Income Security Act of 1974 are both amended by
striking <quote>as an employer of the participant</quote>.</text>
</subsection><subsection id="H41C836B98C8A4A60A443AC53557332FB"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H875C63C4FC59434CBE7704FE860E3A82"><enum>(1)</enum><text>The amendments
made by this section shall take effect as of the first day of the first plan
year beginning after August 31, 2008, provided however that any election a plan
makes pursuant to this section that affects the plan’s funding standard account
for the first plan year beginning after August 31, 2008 shall be disregarded
for purposes of applying the provisions of section 305 of the Employee
Retirement Income Security Act of 1974 and section 432 of the Internal Revenue
Code of 1986 to that plan year.</text>
</paragraph><paragraph id="H5505654C6DAC43D788A014650DD621A2"><enum>(2)</enum><text>Notwithstanding
paragraph (1), the restrictions on plan amendments increasing benefits in
sections 304(b)(8)(C) of the ERISA and 431(b)(8)(C) of the Internal Revenue
Code, as added by this section, shall be effective 30 days after the date of
enactment of this Act.</text>
</paragraph></subsection></section><section id="HAE4744472B9D405CB1FF4A8B2C9FCC3F"><enum>202.</enum><header>Multiemployer
plans in endangered or critical status</header>
<subsection id="H258E197399DD45048C1BC72C3E70E3C3"><enum>(a)</enum><header>Optional Longer
Correction Periods</header>
<paragraph id="H66AD54DA04854CF3A90DBD9BF08F84E5"><enum>(1)</enum><header>Amendment to
ERISA</header>
<subparagraph id="H5032FA39C258403FBDBC556ECE0A4112"><enum>(A)</enum><header>Funding
improvement period</header><text>Section 305(c)(4) of the Employee Retirement
Income Security Act of 1974 is amended by redesignating subparagraphs (C) and
(D) as subparagraphs (D) and (E), respectively, and by inserting after
subparagraph (B) the following new subparagraph:</text>
<quoted-block id="HFBEC364501BB42289C617C05483538E7" style="OLC">
<subparagraph id="H6201327158684E5092DBBEB742E21563"><enum>(C)</enum><header>Election to
extend period</header><text>The plan sponsor of an endangered or seriously
endangered plan may elect to extend the applicable funding improvement period
by up to 5 years, including any extension of the period previously elected
pursuant to section 205 of the Worker, Retiree and Employer Relief Act of
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0DDB95C2F55E47D9BC6BD1031D09415C"><enum>(B)</enum><header>Rehabilitation
period</header><text>Section 305(e)(4) of such Act is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A)
the following new subparagraph:</text>
<quoted-block id="H3945EC1B921443C18C7671C9E3EB46E3" style="OLC">
<subparagraph id="H733734488C9848999840434F969A3917"><enum>(B)</enum><header>Election to
extend period</header><text>The plan sponsor of a plan in critical status may
elect to extend the rehabilitation period by up to five years, including any
extension of the period previously elected pursuant to section 205 of the
Worker, Retiree and Employer Relief Act of
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HAE86890105124EA19F0066F4B230A880"><enum>(2)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header>
<subparagraph id="HB0C01C80C6194C9293A23CCA439A15F8"><enum>(A)</enum><header>Funding
improvement period</header><text>Section 432(c)(4) of the Internal Revenue Code
of 1986 is amended by redesignating subparagraphs (C) and (D) as subparagraphs
(D) and (E), respectively, and by inserting after subparagraph (B) the
following new subparagraph:</text>
<quoted-block id="HDC8E110A1A744501A2649CD2054F6B64" style="OLC">
<subparagraph id="H4F2F1DDBD28142708BE468B29D19682A"><enum>(C)</enum><header>Election to
extend period</header><text>The plan sponsor of an endangered or seriously
endangered plan may elect to extend the applicable funding improvement period
by up to 5 years, including any extension of the period previously elected
pursuant to section 205 of the Worker, Retiree and Employer Relief Act of
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF73D20079CFF425BA35123E910D0A3E1"><enum>(B)</enum><header>Rehabilitation
period</header><text>Section 432(e)(4) of such Code is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A)
the following new subparagraph:</text>
<quoted-block id="H37309DCBE86F410787F03E59F3502B00" style="OLC">
<subparagraph id="HEBE40B2ACEA14FCDB280F1034CB5E17E"><enum>(B)</enum><header>Election to
extend period</header><text>The plan sponsor of a plan in critical status may
elect to extend the rehabilitation period by up to five years, including any
extension of the period previously elected pursuant to section 205 of the
Worker, Retiree and Employer Relief Act of
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H952A3E4A6EF744089CB32CB1D0D680D5"><enum>(b)</enum><header>Simplification
of the Funding Improvement Period for Certain Seriously Endangered
Plans</header>
<paragraph id="H9E3639316AEE499FB090188419B3BB1B"><enum>(1)</enum><header>Amendment to
ERISA</header><text>Section 305(c) of the Employee Retirement Income Security
Act of 1974 is amended—</text>
<subparagraph id="HCAF69095FF4B4748976B609DC7B70F0B"><enum>(A)</enum><text>by striking
paragraph (5) and redesignating paragraph (6) as paragraph (5), and</text>
</subparagraph><subparagraph id="H9A1094F419B04A96A865FA52A88785A2"><enum>(B)</enum><text>in paragraph (1)
by striking <quote>(as modified by paragraph (5))</quote>.</text>
</subparagraph></paragraph><paragraph id="H652BE4DECE1A41F3941B2E524EBB638E"><enum>(2)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Section 432(c) of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H50C95145705F489E84492ABD9D9AD3F1"><enum>(A)</enum><text>by striking
paragraph (5) and redesignating paragraph (6) as paragraph (5), and</text>
</subparagraph><subparagraph id="HD7804496A6E54D7BB5DC6932ED882ACF"><enum>(B)</enum><text>in paragraph (1)
by striking <quote>(as modified by paragraph (5))</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H72E4AF3CE61C48C49FD213AE6D05047B"><enum>(c)</enum><header>Social Security
Level Income Option</header>
<paragraph id="HE79C8B32721F44D3A18580067D9ADF8A"><enum>(1)</enum><header>Amendment to
ERISA</header><text>Subparagraph (B)(i) of section 305(f)(2) of the Employee
Retirement Income Security Act of 1974 is amended by striking
<quote>204(b)(1)(G)),</quote> and inserting <quote>204(b)(1)(G) or any stream
of payments that is structured to be similar in amount and duration to such
supplements),</quote>.</text>
</paragraph><paragraph id="HCF71DF003215448DA2DFBCD4C1E66030"><enum>(2)</enum><header>Amendment to
INTERNAL REVENUE CODE OF 1986</header><text>Subparagraph (A)(i) of section
432(f)(2) of the Internal Revenue Code of 1986 is amended by striking
<quote>411(b)(1)(A)),</quote> and inserting <quote>411(b)(1)(A) or any stream
of payments that is structured to be similar in amount and duration to such
supplements),</quote>.</text>
</paragraph><paragraph id="HF5BB26B3D3E74CDB967A7CD9BEE6B6D0"><enum>(3)</enum><header>Effective
date</header>
<subparagraph id="H4F4B39F36192491AA5756AEE9D552C0D"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this subsection shall apply as if included in sections 202(a) and 212(a) of
the Pension Protection Act of 2006.</text>
</subparagraph><subparagraph id="H7B37F3833B184D92B31F37BC1366CB41"><enum>(B)</enum><header>Transition
rule</header>
<clause id="HC8CF93925BE845AFAFA03BDBAE650690"><enum>(i)</enum><text>In
the case of a plan described in clause (ii), a plan shall not be required to
comply with the amendments made by this section until the date that is 60 days
after the date of enactment of this Act, but such a plan may comply on any
otherwise permitted earlier date.</text>
</clause><clause id="HE165A2746A7A472AB27422D2DD6B649A"><enum>(ii)</enum><text>A
plan is described in this clause if a restriction on benefit payments is or has
been imposed, pursuant to section 305(f) of the Employee Retirement Income
security Act of 1974 and section 432(f) of the Internal Revenue Code of 1986,
in effect with respect to such plan as of the date of enactment of this
Act.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HC9DDD151E99D40BEBC26E95B477F9209"><enum>(d)</enum><header>Technical
Corrections</header>
<paragraph id="H7739EA3829F84930A4F0DB6D92218D65"><enum>(1)</enum><header>Amendments to
ERISA</header><text>Section 305(c) of the Employee Retirement Income Security
Act of 1974 is amended—</text>
<subparagraph id="H46ABB1E3E0A34713B298DB8E9F9B4CF4"><enum>(A)</enum><text>in paragraph
(1)(B)(i)—</text>
<clause id="H5F889654BC5D4335917BBF30AB16C127"><enum>(i)</enum><text>by
striking <quote>plan, including—</quote> and all that follows through
<quote>one proposal for reductions</quote> and inserting <quote>plan, including
one proposal for reductions</quote>,</text>
</clause><clause id="H4AEC9180B88E4DAB8760846770F423B7"><enum>(ii)</enum><text>by
striking <quote>, and</quote> at the end of subclause (I) and inserting a
period, and</text>
</clause><clause id="H68521F9397F544D980D02BC22EFF5BA9"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking subclause (II),</text>
</clause></subparagraph><subparagraph id="H0A51F7FC21104DFE8701FEBCB41D28EC"><enum>(B)</enum><text>in paragraph
(7)(A), by striking <quote>(1)(B)(i)(I)</quote> and inserting
<quote>(1)(B)(i)</quote>,</text>
</subparagraph><subparagraph id="HDFE47AE5241E47C8B1669E8FD9987AA9"><enum>(C)</enum><text>in paragraph (4)
by adding at the end the following:</text>
<quoted-block id="HE08E951A71B04701813FE7FB023126E5" style="OLC">
<subparagraph id="H35F609441FC44CCA9F9B77A3ED89F0C1"><enum>(E)</enum><header>Plans that
achieve funding improvement benchmarks while in endangered or seriously
endangered status</header><text>If the plan’s actuary certifies under
subsection (b)(3)(A) that the plan has achieved the applicable increase in the
funding percentage described in paragraph (3) of this subsection and that the
plan is nevertheless still in endangered status, the provisions of this
subsection and subsection (d) shall remain in effect until the earlier of the
expiration of the funding improvement period or the last day preceding the plan
year for which the actuary certifies that the plan is no longer in endangered
status.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H1902F14429284C62BC0225B381299E5B"><enum>(D)</enum><text>in paragraph
(4)(C)(ii) by striking all that follows <quote>whichever is applicable,</quote>
and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="HCE7C212A679348F9A470ABBCCFACCA82" style="OLC">
<text>shall end as of
the close of the preceding plan year, except that, until the start of the
rehabilitation plan adoption period—</text><subclause id="HF92A0C49D7924FBB9FADC09EEDC13758"><enum>(I)</enum><text>the rules of
subparagraphs (A) and (B) of subsection (d)(1) shall apply if, prior to the
date the of the critical-status certification, the plan was in the funding
improvement plan adoption period for the plan year, and</text>
</subclause><subclause id="H033777225B44489CAAFA24F8CC964D4C"><enum>(II)</enum><text>the rules of
subsection (d)(2) shall apply if, prior to the date of the critical-status
certification, the plan was in the funding improvement period for the plan
year.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H06C745FF38BD478D96722B587DE550C3"><enum>(2)</enum><header>Amendments to
INTERNAL REVENUE CODE OF 1986</header><text>Section 432(c) of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H99D01EFAB30341999633054723F9EDE2"><enum>(A)</enum><text>in paragraph
(1)(B)(i)—</text>
<clause id="H718D29FB7B454A229FD68D201D6C4F5F"><enum>(i)</enum><text>by
striking <quote>plan, including—</quote> and all that follows through
<quote>one proposal for reductions</quote> and inserting <quote>plan, including
one proposal for reductions</quote>,</text>
</clause><clause id="HE2471DBFCEA2454B978D922B0AC03FA2"><enum>(ii)</enum><text>by
striking <quote>, and</quote> at the end of subclause (I) and inserting a
period, and</text>
</clause><clause id="H30661863E0EE4814B88150E7B56E9748"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking subclause (II),</text>
</clause></subparagraph><subparagraph id="HC75BB3517AC84452A8DE30EC7F157A02"><enum>(B)</enum><text>in paragraph
(7)(A), by striking <quote>(1)(B)(i)(I)</quote> and inserting
<quote>(1)(B)(i)</quote>,</text>
</subparagraph><subparagraph id="H220CB3DE1B8A44B992B1112AFC72C6D7"><enum>(C)</enum><text>in paragraph (4)
by adding at the end the following:</text>
<quoted-block id="HC30812FA1CC54250A3210A49EFB88B33" style="OLC">
<subparagraph id="H948A4B959D604F729E1444E52B003ED2"><enum>(E)</enum><header>Plans that
achieve funding improvement benchmarks while in endangered or seriously
endangered status</header><text>If the plan’s actuary certifies under
subsection (b)(3)(A) that the plan has achieved the applicable increase in the
funding percentage described in paragraph (3) of this subsection and that the
plan is nevertheless still in endangered status, the provisions of this
subsection and subsection (d) shall remain in effect until the earlier of the
expiration of the funding improvement period or the last day preceding the plan
year for which the actuary certifies that the plan is no longer in endangered
status.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H5F3D57B161A545BEAEA516CCE4F4F730"><enum>(D)</enum><text>in paragraph
(4)(C)(ii) by striking all that follows <quote>whichever is applicable,</quote>
and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="HF074C580F84B4855BD9DC475DB9A8F4B" style="OLC">
<text>shall end as of
the close of the preceding plan year, except that, until the start of the
rehabilitation plan adoption period—</text><subclause id="HE4CF90DDDD7D4BCF9B3A8300F5389320"><enum>(I)</enum><text>the rules of
subparagraphs (A) and (B) of subsection (d)(1) shall apply if, prior to the
date the of the critical-status certification, the plan was in the funding
improvement plan adoption period for the plan year, and</text>
</subclause><subclause id="HE283E2AFC48A4D0F99964AA09862DB90"><enum>(II)</enum><text>the rules of
subsection (d)(2) shall apply if, prior to the date of the critical-status
certification, the plan was in the funding improvement period for the plan
year.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="H5B63A17584D7490E8B73D470A9BFEE22"><enum>203.</enum><header>Multiemployer
plan mergers and alliances</header>
<subsection id="H76B58CC3786848E8821A36E68C3BFB07"><enum>(a)</enum><header>Multiemployer
Plan Alliances</header>
<paragraph id="H5C2DE08DD95D40D086D1405D2C33545F"><enum>(1)</enum><header>Amendments to
ERISA</header>
<subparagraph id="H9FF3071FF84247F08EE5E76340B4D3CE"><enum>(A)</enum><text display-inline="yes-display-inline">Section 4231 of the Employee Retirement
Income Security Act of 1974 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA93D88B4D3024BFAADB8AF12490478A3" style="OLC">
<subsection id="HF79CBFAE2FF94CDDB359CE23B9EF4A3B"><enum>(e)</enum><header>Multiemployer
Plan Alliances</header>
<paragraph id="H9246640B17494BBFB3613BA35EC5817D"><enum>(1)</enum><header>In
general</header><text>The plan sponsor of a multiemployer plan into which
another multiemployer plan has been merged may designate the merger as an
alliance to which the rules of this subsection apply by amending the
plan—</text>
<subparagraph id="H7CD6970667AA4B3887EFE7C1819D3877"><enum>(A)</enum><text>to identify the
allied plan, and</text>
</subparagraph><subparagraph id="HB3232BE16B1743989436266810913EFB"><enum>(B)</enum><text>to delineate the
terms of operation of the alliance, including the allocation of employer
contributions and experience gains and losses between the merged plan and the
partially separate frozen allied plan described in paragraphs (2) and
(3).</text>
</subparagraph></paragraph><paragraph id="H5BEC946C2C5E4D82AB85F2A3FFE96AA2"><enum>(2)</enum><header>Applicable
provisions</header><text>Except to the extent otherwise provided in the plan
amendment under paragraph (1), sections 302, 304 and 305 (minimum funding),
Part 1 of Subtitle E (withdrawal liability), sections 4244A and 4281 (plan
termination), part 3 of subtitle E (plan reorganization and insolvency) and
section 4261 (financial assistance from the corporation) shall apply to the
frozen allied plan and the plan into which the allied plan was merged as if
they were separate plans.</text>
</paragraph><paragraph id="HA63E0DE31AAD4BE19B4728DA09EC17F6"><enum>(3)</enum><header>Frozen allied
plan treated as separate plan</header>
<subparagraph display-inline="no-display-inline" id="H194660FE39FA49AFA1C7A066D39DD185"><enum>(A)</enum><header>Assets and
liabilities</header><text>The frozen allied plan that is treated in part as a
separate plan pursuant to this paragraph comprises the assets and liabilities
of the allied plan as if it had been amended, effective immediately before the
effective date of the merger, to cease all benefit accruals.</text>
</subparagraph><subparagraph id="H5A7DEB9C4C7C4A9FB4018D12C7C2E5E3"><enum>(B)</enum><header>Employers
maintaining plan</header><text>The employers that were obligated to contribute
to the allied plan immediately before the effective date of the merger, and any
successors thereto whether by sale, reorganization or otherwise, shall be
considered to be the employers maintaining the partially separate frozen allied
plan, to the extent they continue to have an obligation to contribute with
respect to participants or facilities covered by the allied plan.</text>
</subparagraph><subparagraph id="H32550B2422DB42D0B53FF7033CFF0CF3"><enum>(C)</enum><header>Participants and
beneficiaries</header><text>The participants and beneficiaries of the allied
plan immediately before the effective date of the merger shall be considered to
be the participants and beneficiaries of the partially separate frozen allied
plan thereafter.</text>
</subparagraph></paragraph><paragraph id="HA0FB54BACE7843B3A586110CABBB06C9"><enum>(4)</enum><header>Treatment of
merged plan as single plan</header><text>Except as provided in paragraphs (2)
and (3), the allied plan and the plan into which it has been merged shall be
treated as a single plan.</text>
</paragraph><paragraph id="H67197DDDCD4C4F8EB38298FB9B13F794"><enum>(5)</enum><header>Other
rules</header>
<subparagraph display-inline="no-display-inline" id="H7AA925A42DED409AA5B96DDFDE54CDDC"><enum>(A)</enum><header>Adoption of
initial plan amendment</header><text>The plan amendment initially designating a
merger as an alliance, identifying the allied plan and delineating the terms of
the alliance must be adopted by no later than the last day of the plan year in
which the merger takes effect.</text>
</subparagraph><subparagraph id="HD55CF36452A44655A43892F8DBF8CE84"><enum>(B)</enum><header>Subsequent
amendments</header><text>That initial plan amendment may subsequently be
modified or repealed, except that the plan gives notice of the change to the
employers and participants of the allied plan at least 15 days before the
subsequent amendment takes effect.</text>
</subparagraph><subparagraph id="HD8015FB3A0F04634A77297B50B1CE4B2"><enum>(C)</enum><header>Discretion to
treat mergers differently</header><text>The plan sponsor of a multiemployer
plan may, in its discretion, treat some mergers as alliances and others as full
mergers, and may prescribe different terms of operation for different
alliances, if the basis for the distinctions is not
unreasonable.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HEB1BABDC286C4BF3B5F5219AC6A5E0E3"><enum>(B)</enum><text display-inline="yes-display-inline">Subsection (b) of section 4231 of such Act
is amended by striking <quote>and</quote> at the end of paragraph (3), by
striking the period at the end of paragraph (4) and inserting <quote>,
and</quote>, and by inserting after paragraph (4) adding at the end the
following:</text>
<quoted-block id="H5337269B2A324E228D7ACC510F810423" style="OLC">
<paragraph id="HE7ECC4809774439CB413157C7B31CC03"><enum>(5)</enum><text>a merger that is
designated as an alliance under subsection (e) shall not be treated as failing
to meet any of the criteria of this subsection solely because benefits under
the allied plan are, or are expected to be, reduced or eliminated pursuant to
section 305 as a result of the endangered or critical status of the frozen
allied
plan.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HC911ACD16F1747E6A165FA933B2DCB11"><enum>(C)</enum><text>Section 404(a) of
the Employee Retirement Income Security Act of 1974 is amended by adding at the
end the following new paragraph:</text>
<quoted-block id="H3A059C2FE88E4C36864A73D08D0DB5EB" style="OLC">
<paragraph id="HD9D9C86FA2E1469DB14E3F395AF64D10"><enum>(3)</enum><text>With respect to a
merger of multiemployer plans, including a merger that is designated as an
alliance under section 4231(e), the plan sponsors of the merging plans shall be
considered to meet the requirements of paragraph (1)(A) if the plan sponsors
determine that the merger is not reasonably likely to be adverse to the
long-term interests of the participants and beneficiaries of the plan for which
the plan sponsors are responsible prior to the
merger.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
<clause id="H06FD9DFF63A44546A230D1033A069AF3"><enum>(i)</enum><text>Section 4231(c) of
the Employee Retirement Income Security Act of 1974 is amended by striking
<quote>The merger of multiemployer plans or the transfer</quote> and inserting
<quote>The merger of multiemployer plans, including a merger that is designated
as an alliance, or the transfer</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="HE8041376BBF54051B560461F3AD1874A"><enum>(2)</enum><header>Amendments to
INTERNAL REVENUE CODE OF 1986</header><text>Section 412 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB2A955513892412E98DE4A054687880F" style="OLC">
<subsection id="H5ECEC87CAC944CF190C7EAD632EBE148"><enum>(e)</enum><header>Multiemployer
Plan Alliances</header>
<paragraph id="HE488EB51997142E9A1824CAC80EC9CBD"><enum>(1)</enum><header>In
general</header><text>Except to the extent otherwise provided in the plan
amendment under section 4231(e)(1) of the Employee Retirement Income Security
Act of 1974 designating a multiemployer plan merger as an alliance, this
section and sections 431 and 432 shall apply to the frozen allied plan and the
plan into which the allied plan was merged as if they were separate
plans.</text>
</paragraph><paragraph id="H02F05B804D16450DAC1DD949618A8730"><enum>(2)</enum><header>Employers
maintaining plan</header><text>The employers that were obligated to contribute
to the allied plan immediately before the effective date of the merger, and any
successors thereto whether by sale, reorganization or otherwise, shall be
considered to be the employers maintaining the partially separate frozen allied
plan to the extent they continue to have an obligation to contribute with
respect to participants or facilities covered by the allied plan.</text>
</paragraph><paragraph id="H88AE52B0BCF24B0DA2292265A43C16DC"><enum>(3)</enum><header>Participants and
beneficiaries</header><text>The participants and beneficiaries of the allied
plan immediately before the effective date of the merger shall be considered to
be the participants and beneficiaries of the partially separate frozen allied
plan thereafter.</text>
</paragraph><paragraph id="H155CF687335B4B54BFC36AF61F520210"><enum>(4)</enum><header>Treatment of
merged plan as single plan</header><text>Except as provided in paragraphs (2)
and (3) of section 4231(e) of the Employee Retirement Income Security Act of
1974, the allied plan and the plan into which it has been merged shall be
treated as a single plan.</text>
</paragraph><paragraph id="H448DA67C41E4447995B047DF8B117794"><enum>(5)</enum><header>Alliance; allied
plan</header><text>For purposes of this subsection, the terms
<term>alliance</term> and <term>allied plan</term> shall have the same meanings
as they have under section 4231(e) of the Employee Retirement Income Security
Act of
1974.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2A0E4515A1B14F4C950810FD0AAE590D"><enum>(b)</enum><header>PBGC Assistance
for Multiemployer Plan Mergers</header><text>Section 4231 of the Employee
Retirement Income Security Act of 1974, as amended by this Act, is amended by
adding at the end the following:</text>
<quoted-block id="H8B6C5D9A65B04ECBB42AFA34B84B266D" style="OLC">
<subsection id="HB2323545A7114D75A9079D3E4A0174A8"><enum>(f)</enum><header>Facilitated
Mergers</header>
<paragraph id="H010FA4A831ED4777B74687C605416FC1"><enum>(1)</enum><header>In
general</header><text>When requested to do so by the plan sponsors, the
corporation shall take reasonable actions to promote and facilitate the merger
of two or more multiemployer plans, including a merger that is designated as an
alliance, if it determines that the transaction is in the interests of the
participants and beneficiaries of at least one of the plans, and is not
reasonably expected to be adverse to the long-term interests of the
participants and beneficiaries of the other plan or plans. Such facilitation
may include training, technical assistance, mediation, communication with
stakeholders and support with related requests to other government agencies,
among other activities.</text>
</paragraph><paragraph id="H19D232505F544C8485A86F0A15027538"><enum>(2)</enum><header>Financial
assistance</header><text>To facilitate mergers, including mergers designated as
alliances, which it determines are reasonably necessary to enable one or more
of the plans involved to avoid or postpone insolvency, the corporation may
provide financial assistance to the merged plan if it reasonably expects that
such financial assistance will reduce the corporation’s likely long-term loss
with respect to the plans
involved.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0E78384C84854F21AA44F306A6B2E0D2"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect as of the first day of the first plan year
beginning on or after January 1, 2009.</text>
</subsection></section><section id="HFC6CE713E93A438F91D8F97F19C452D4"><enum>204.</enum><header>Strengthening
participants’ benefit protections</header>
<subsection id="H0690AB79C35C4E2ABF9BF0661CCCC84C"><enum>(a)</enum><header>Increase in
Multiemployer Benefit Guarantee</header><text>Paragraph (1) of section 4022A(c)
of the Employee Retirement Income Security Act of 1974 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HBA61FE01BF354D46AA4FE47FF63092A1" style="OLC">
<paragraph id="H7E2551AE034F4FB8973B0713912FA4D2"><enum>(1)</enum><text display-inline="yes-display-inline">Except as provided in subsection (g), the
monthly benefit of a participant or a beneficiary which is guaranteed under
this section by the corporation with respect to a plan is the product of the
number of the participant’s years of credited service multiplied by the sum
of—</text>
<subparagraph display-inline="no-display-inline" id="H68C70495E6B544908BA4A8F622AF4A4D"><enum>(A)</enum><text display-inline="yes-display-inline">100 percent of the accrual rate up to $11,
plus 75 percent of the lesser of—</text>
<clause id="HEE7433762A224A36A336D95F38BB8092"><enum>(i)</enum><text>$33, or</text>
</clause><clause id="H3B90A5407ACA4A8FAD69D959F103FB93"><enum>(ii)</enum><text>the accrual rate,
if any, in excess of $11, and</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H7735DAD48DB646A1AD6D7586E5F3E9D9" indent="up1"><enum>(B)</enum><text>50 percent of the lesser of—</text>
<clause id="HD6B24845E6B3454F86BBDAC29347919E" indent="down1"><enum>(i)</enum><text>$40 or</text>
</clause><clause id="H024CF342DD4B4443A6792EDDCC66E3FE" indent="down1"><enum>(ii)</enum><text>the accrual rate,
if any, in excess of
$44.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC72E843F18A24CB58F19E9B6BA4B72D1"><enum>(b)</enum><header>Qualified
Partition of Eligible Multiemployer Plans</header>
<paragraph id="H5B9B9A700FE84C73A41C34B2D82F8C32"><enum>(1)</enum><header>Qualified
Partitions</header><text>Section 4233 of the Employee Retirement Income
Security Act of 1974 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HFFAC85086189491B9F55B40254ACC38E" style="OLC">
<subsection id="H01B8DDF78F394283AED789C4319C79B2"><enum>(g)</enum><header>Qualified
Partition of Eligible Multiemployer Plans</header>
<paragraph display-inline="no-display-inline" id="H7BB70F935A4A424EA40748DAA5133B73"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsections (a) through (f), upon the
election by the plan sponsor of an eligible multiemployer plan of a qualified
partition, the corporation shall order a partition of the electing
multiemployer plan in accordance with this subsection, effective on the first
day of the first month that begins at least 90 days after the date the
multiemployer plan made the qualified partition election.</text>
</paragraph><paragraph id="H12E05492B8564A65A233E1AFC2A8D6CB"><enum>(2)</enum><header>Eligible
multiemployer plan</header><text>An eligible multiemployer plan is a
multiemployer plan as to which—</text>
<subparagraph id="H2FAEE2C03AC141B18D0D212825406B31"><enum>(A)</enum><text>the plan actuary
has certified pursuant to section 305(c) that the plan is currently in critical
status (within the meaning of section 305(b)(2));</text>
</subparagraph><subparagraph id="HEE4FFE99BBC64187A2BA984C9452D14F"><enum>(B)</enum><text display-inline="yes-display-inline">a substantial reduction in the amount of
aggregate contributions under the plan has resulted or will result from—</text>
<clause id="H06EDA70DE1364E36BAEA5D91280BF7E5"><enum>(i)</enum><text>cases or
proceedings under title 11, United States Code, with respect to employers,
or</text>
</clause><clause id="H5D2BA96BAF3641B38D34A120F9A35D4A"><enum>(ii)</enum><text>employers’
ceasing to be in business, if such employers did not pay the full amount of
withdrawal liability demanded by the plan under section 4219;</text>
</clause></subparagraph><subparagraph id="HA00C6238E7024BE7A74687FCEA1016DB"><enum>(C)</enum><text>the plan sponsor
has certified, consistent with projections provided by the plan actuary, that
the plan is likely to become insolvent;</text>
</subparagraph><subparagraph id="H2770AB1119C04686B6499777F523F1FB"><enum>(D)</enum><text>the plan sponsor
has certified, consistent with projections provided by the plan actuary, that
contributions will have to be increased significantly to prevent
insolvency;</text>
</subparagraph><subparagraph id="HADDE0A508A7048A1A33DAC7A8924A8DB"><enum>(E)</enum><text>the plan sponsor
has certified that, as of the last day of each of the two immediately preceding
plan years—</text>
<clause id="H9C2D58BD38524814BD612186B30166AB"><enum>(i)</enum><text>the ratio of the
number of the plan’s retirees, beneficiaries of deceased participants, and
terminated vested participants to the number of the plan’s active participants
for each such year was at least 2 to 1; and</text>
</clause><clause id="H6A411B55867041E8BEA9B7B717623904"><enum>(ii)</enum><text>the ratio of
benefit payments made by the plan for each such year to contributions required
to be made to the plan under section 304 or 305(e), as applicable, for each
such year was at least 2 to 1; and</text>
</clause></subparagraph><subparagraph id="H2005B910C45448A898027A331AE8D3BC"><enum>(F)</enum><text>the plan sponsor
has certified, consistent with projections provided by the plan actuary, that
partition would significantly reduce the likelihood that the plan will become
insolvent.</text>
</subparagraph></paragraph><paragraph id="H5C76D95FE6654C7A888C433E96192130"><enum>(3)</enum><header>Transfers under
qualified partition order</header><text>The corporation’s qualified partition
order shall provide for transfers as follows:</text>
<subparagraph id="H211BA32E2F564E44846D756CAD7753C9"><enum>(A)</enum><text>An initial
transfer of—</text>
<clause id="H222D837E1C5145C4B0C2692D86C167E0"><enum>(i)</enum><text>no
more than the nonforfeitable benefits directly attributable to service with the
employers referred to in paragraph (2)(ii), and</text>
</clause><clause id="H67E081A440A24219A7086C9B5DF0E372"><enum>(ii)</enum><text>assets
attributable to any withdrawal liability payments by such employers and, as
adjusted by any gains or losses thereon, and reduced by any benefit payments
made with regard to service with the employers.</text>
</clause></subparagraph><subparagraph id="H11EA3F6E14DF464AAF1937166DF9FC97"><enum>(B)</enum><text>As of the last day
of each plan year following a plan year in which a qualified partition has
occurred, the plan sponsor shall determine whether during such plan year, the
aggregate contributions under the plan declined by 10 percent or more as a
result of events described in paragraph (2)(ii); and if such decline has
occurred, an additional transfer of—</text>
<clause id="H25F2D62955D14F3BB64EFC7B17F8CFAA"><enum>(i)</enum><text>no
more than the nonforfeitable benefits directly attributable to service with
employers that meets the requirements of paragraph (2)(ii) after the election
of a qualified partition, and</text>
</clause><clause id="HC47692762B6C496EAD4053F274879640"><enum>(ii)</enum><text>assets
attributable to any withdrawal liability payments by such employers, as
adjusted by any gains or losses thereon, and reduced by any benefit payments
made with regard to service with the employers.</text>
</clause></subparagraph></paragraph><paragraph id="H1A83726B344D4E4CBC674BAB16EACE18"><enum>(4)</enum><header>Plan created by
qualified partition</header><text>The plan created by the qualified partition
is—</text>
<subparagraph id="H52D1B7F24908432DA80A4E767C853B0A"><enum>(A)</enum><text>a successor plan
to which section 4022A applies, and</text>
</subparagraph><subparagraph id="H318C2FC07367420F8CD8E2A91714206D"><enum>(B)</enum><text>a terminated
multiemployer plan to which section 4041A(d) applies, with respect to which
only the employers described in paragraphs (2)(ii) and (3)(ii) have withdrawal
liability.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD0242E41DD9D4C9F99036875D8964C70"><enum>(2)</enum><header>Effect of
Qualified Partition on Premiums</header>
<subparagraph id="H016A97B7C109433F88A61D88B1C8BA09"><enum>(A)</enum><text>Clause (i) of
section 4006(a)(3)(C) of the Employee Retirement Income Security Act of 1974 is
amended by adding at the end the following:</text>
<quoted-block id="H4743661AF0924355A054AE4379292D32" style="OLC">
<text display-inline="no-display-inline">For purposes of this subparagraph, the value
of assets held by the corporation and the basic benefits guaranteed for
multiemployer plans shall not include assets and liabilities transferred
pursuant to a qualified partition order under section
4233(g).</text>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HC8CD7CA49FA54D5AA2837EBEF4353E49"><enum>(B)</enum><text>Section 4022A(f)
of the Employee Retirement Income Security Act of 1974 is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBD7B0802382442CC8104887B784A3D49" style="OLC">
<paragraph id="HF69144FD445C4E6BB469E8B97C25C99A"><enum>(5)</enum><text display-inline="yes-display-inline">Basic benefits guaranteed in connection
with assets and liabilities transferred to the corporation pursuant to a
qualified partition order under section 4233(g) shall be disregarded under
subparagraphs (1), (2), and
(3)</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCA80488B39174398A68E8F8E24BB2A38"><enum>(3)</enum><header>PBGC Guarantee
of Partitioned Benefits</header>
<subparagraph id="HD4EA71CBA9E54D6CAB307D917877A721"><enum>(A)</enum><text>Section 4022A of
the Employee Retirement Income Security Act of 1974 is amended by adding at the
end the following:</text>
<quoted-block id="H52742AEA509F45C5A9702C785EFE3E47" style="OLC">
<subsection id="HA7C9E3BA282240DB81847BF8EA9CDCD7"><enum>(i)</enum><text>The monthly
benefit of a participant or a beneficiary whose benefit was transferred
pursuant to a qualified partition which is guaranteed under this section by the
corporation with respect to a plan is the nonforfeitable benefits of the
participant or beneficiary transferred pursuant to the qualified
partition.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H31FCFC721D0F4074B43630DBC8A5453C"><enum>(B)</enum><text>Section
4022A(c)(1) of the Employee Retirement Income Security Act of 1974 is amended
by striking <quote>subsection (g)</quote> and inserting <quote>subsections (g)
and (i)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H9CEE57863CBB4CCBBFDC3D1C7246AFCB"><enum>(c)</enum><header>Financing for
Qualified Partitions and Other Special Matters</header>
<paragraph id="H2F0D2F5F82E243DC8DD253FB4948A690"><enum>(1)</enum><header>Obligations of
the Corporation</header><text>The second sentence of section 4002(g)(2) of the
Employee Retirement Income Security Act of 1974 is amended to read as
follows:</text>
<quoted-block id="H1EBDB14C028A485BB2E7C26A75EC1ECC" style="OLC">
<text display-inline="no-display-inline">The United States Government is not liable
for any obligation or liability incurred by the corporation, except with
respect to liabilities transferred pursuant to a qualified partition of a
multiemployer plan under section 4233(g) and such other special matters as may
be designated in legislation making funding available
therefor.</text>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9D7954628A3B4D2C99E3F9A5B5725D37"><enum>(2)</enum><header>PBGC Fund
Established</header>
<subparagraph id="HFA293E0D02F2489CB4C7C485671BC904"><enum>(A)</enum><text>Fund Established.
Section 4005 of the Employee Retirement Income Security Act of 1974 is amended
by deleting subsections (d) and (e), redesignating existing subsections (f)
through (h) as subsections (e) through (g), and inserting a new subsection (d),
as follows:</text>
<quoted-block id="H679826ACE95947FFAF72113EC8FDEF25" style="OLC">
<subsection id="H49C5D1CC297C483994807B04F774F348"><enum>(d)</enum><header>Establishment of
Fifth Fund; Purpose; Availability, etc</header>
<paragraph id="H4DD74971A3524F8D882C94EAA50DBEC4"><enum>(1)</enum><header>In
general</header><text>A fifth fund is hereby established on the books of the
Treasury of the United States. Such fund shall be for the support of special
matters undertaken by the corporation to minimize its reasonably expected
long-term risk of loss with respect to a plan and protect the reasonable
benefit expectations of plan participants and beneficiaries pursuant to its
responsibilities under section 4002(a) to encourage the continuation and
maintenance of voluntary private pension plans for the benefit of their
participants while maintaining premiums at the lowest level consistent with
that objective.</text>
</paragraph><paragraph id="H7E89EECF3595483AB84C76F7865B794A"><enum>(2)</enum><header>Use of
fund</header><text>The fund established by this subsection shall be used to
finance obligations undertaken by the corporation under section 4233 (partition
of multiemployer plans) and such other matters as may be identified from time
to time in legislation making funding available therefor.</text>
</paragraph><paragraph id="HF4EC0804A26648178615AD0253249B40"><enum>(3)</enum><header>Credits to
fund</header><text>The fund established under this subsection shall be credited
with funds made available to the corporation that are designated for special
matters and the earnings thereon, including any amounts received in connection
with a qualified partition under section 4233(g), and shall not include
premiums paid under section 4007, employer liability or withdrawal liability
payments, the assets of terminated plans or repayments of financial assistance
under section 4261 or other amounts received in connection with terminated or
insolvent plans.</text>
</paragraph><paragraph id="H775DD18026A741DE97322B9C33CE54F7"><enum>(4)</enum><header>Transactions
with other funds</header><text>Notwithstanding paragraph (3), this fund may
engage in transactions with the other funds established under this section to
the extent reasonable and necessary to meet liquidity demands and maximize the
ability of the corporation to accomplish its mission under section 4002(a)
without increasing the premiums payable under section 4006.</text>
</paragraph><paragraph id="HB4FE5899F4AB4DB8BB68515FCBE2B47B"><enum>(5)</enum><header>Investments</header><text>The
corporation may invest amounts of the fund in such obligations as the
corporation considers appropriate.</text>
</paragraph><paragraph id="HF8F6172393104C199B795A84BF8C7884"><enum>(6)</enum><header>Obligations of
United States</header><text>Notwithstanding any other provision of this title,
obligations of the corporation that are financed by the fund created by this
subsection shall be obligations of the United
States.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H550176DA77B24B4685B05F4F99721DD8"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="HB49B5C07457745A3AC40E1B31A434711"><enum>(A)</enum><text>Section 4022A(g)
of such Act is amended by striking paragraph (2).</text>
</subparagraph><subparagraph id="HA72A9E1058FB4A02AECAD5EEABEC9B65"><enum>(B)</enum><text>Part 1 of subtitle
E of title IV of such Act is amended by striking section 4222, and the table of
contents for such Act is amended by striking the item relating to section
4222.</text>
</subparagraph></paragraph></subsection><subsection id="H07B3A755743E4A9B81DDCC418A5C77D5"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HEAD35F56842F44189439010BBE713F3F"><enum>(1)</enum><text>The amendments
made by subsection (a) shall apply with respect to plans that first apply for
financial assistance from the Pension Benefit Guarantee Corporation after the
date of enactment of this Act.</text>
</paragraph><paragraph id="H93C6130C02D74D0A82E5762DB42F1EA2"><enum>(2)</enum><text>The amendments
made by subsections (b) and (c) shall take effect on the date of enactment of
this Act.</text>
</paragraph></subsection></section>