[Congressional Record Volume 153, Number 195 (Wednesday, December 19, 2007)]
[Senate]
[Pages S16048-S16055]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PENSION PROTECTION TECHNICAL CORRECTIONS ACT OF 2007
Mr. REID. Mr. President, I ask unanimous consent that the Senate
proceed to Calendar No. 333, S. 1974.
The ACTING PRESIDENT pro tempore. The clerk will report the bill by
title.
The legislative clerk read as follows:
A bill (S. 1974) to make technical corrections related to
the Pension Protection Act of 2006.
There being no objection, the Senate proceeded to consider the bill.
Mr. BAUCUS. Mr. President, in connection with S. 1974, the Pension
Protection Technical Corrections Act of 2007, the ranking Republican
member of the Finance Committee, Senator Grassley, and I have prepared
a joint statement that contains an explanation of the bill. This
explanation expresses the Senate Finance Committee's understanding of
the provisions of the bill and serves as a reference in understanding
the legislative intent behind this important legislation.
I ask unanimous consent that this joint statement be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Joint Statement of Senators Max Baucus and Chuck Grassley
The Pension Protection Act of 2006 arguably marks the most
sweeping changes to
[[Page S16049]]
the pension laws since the enactment of the Employee
Retirement Income Security Act of 1974. In general, the Act,
which was signed into law on August 17, 2006, changes the
funding rules for single-employer defined benefit pension
plans, expands the deduction limits for contributions to such
plans, modifies the rules for determining lump sum
distributions, and provides clarification and adds new rules
for cash balance pension plans. The Act also provides special
funding rules for plans maintained by airlines and airline
catering companies, provides new rules for multiemployer
pension plans, and requires increased disclosure of pension
plan information. In the defined contribution plan area, the
Pension Act adds rules relating to automatic enrollment
plans, eliminating legal impediments to such arrangements and
providing incentives for plan sponsors to adopt these
arrangements. There were modifications to prohibited
transactions and other fiduciary rules under ERISA,
particularly with regard to the provision of investment
advice. A welcome addition to the Act was the elimination of
the expiration date of the tax provisions added as part of
the Economic Growth and Tax Relief Reconciliation Act of
2001, so that the increases in contribution limits to IRAs,
401(k), 403(b), and 457 plans, the catch-up contribution and
the Roth 401(k), will continue to apply and not sunset in
2010.
Like many complicated pieces of legislation, technical
corrections to the law must be made. Technical corrections to
the law are often time sensitive. That is, many of them must
be passed by both Houses of Congress before the effective
date of the statute. Like many of the rules under the Pension
Act, the funding rules for single-employer defined benefit
pension plans are effective January 1, 2008. If technical
corrections to the single-employer defined benefit plan
funding rules are not passed by year-end, the pension
community and the Department of Treasury--the agency tasked
with interpreting the statute and providing the necessary
details on how the new law works--will be placed in a very
tough spot. That is, the Department of Treasury will not have
the necessary corrections and clarifications of the original
intent of the Act to sufficiently issue the details necessary
to allow the pension community to achieve proper compliance.
This is not fair to the pension community or the Treasury
Department. Failing to pass a pension technical corrections
bill by December 31, 2007, would therefore be irresponsible.
It has come to the Senate's attention that the House of
Representatives does not share the Senate's sense of urgency
about these time-sensitive pension technical corrections. We
don't understand this position. Perhaps, the House majority
wants to re-negotiate the Pension Act, which could be
accomplished by delaying the effective date of the statute
for 1 year. We would like to remind everyone that the Senate
passed the Act by a 93 to 5 vote. It is clear that a
bipartisan majority of the Senate thinks the Pension Act is
good pension policy. It is also clear that the Senate does
not and would not support delaying effective date of the
statute. That is a non-starter.
So we urge the House to heed the warnings from the pension
community that pension plan participants could be adversely
affected without the necessary corrections and clarifications
of the Pension Act. We urge the House to pass S. 1974 before
Congress adjourns. Failure to pass a pension technical
corrections package would send the wrong message to plan
sponsors and pension plan participants.
Mr. REID. Mr. President, I ask unanimous consent that the amendment
at the desk be considered and agreed to, the bill, as amended, be read
a third time, passed, and the motion to reconsider be laid upon the
table; that any statements relating to this matter be printed in the
Record; that upon passage, the bill remain at the desk until such time
the Senate receives a companion measure from the House; that the Senate
then proceed to its consideration; that all after the enacting clause
be stricken, the text of S. 1974, as amended, be inserted in lieu
thereof, the bill advanced to third reading, passed, and the motion to
reconsider be laid upon the table without further intervening action or
debate, and that S. 1974 be returned to the calendar.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendment (No. 3891) was agreed to.
(The amendment is printed in today's Record under ``Text of
Amendments.''
The bill was ordered to be engrossed for a third reading and was read
the third time.
The bill (S. 1974), as amended, was read the third time and passed,
as follows:
=========================== NOTE ===========================
On page S16049, December 19, 2007, the Record reads: The bill
(S. 1971), as amended . . .
The online version has been changed to read: The bill (S. 1974),
as amended . . .
========================= END NOTE =========================
S. 1974
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO ACTS.
(a) In General.--This Act may be cited as the ``Pension
Protection Technical Corrections Act of 2007''.
(b) References to Acts.--For purposes of this Act--
(1) Amendment of 1986 code.--The term ``1986 Code'' means
the Internal Revenue Code of 1986.
(2) Amendment of erisa.--The term ``ERISA'' means the
Employee Retirement Income Security Act of 1974.
(3) 2006 act.--The term ``2006 Act'' means the Pension
Protection Act of 2006.
SEC. 2. AMENDMENTS RELATED TO TITLE I.
(a) Amendments Related to Sections 101 and 111.--
(1) Amendments to erisa.--
(A) Clause (i) of section 302(c)(1)(A) of ERISA is amended
by striking ``the plan is'' and inserting ``the plan are''.
(B) Section 302(c)(7) of ERISA is amended by inserting
``which reduces the accrued benefit of any participant''
after ``subsection (d)(2)'' in subparagraph (A).
(C) Section 302(d)(1) of ERISA is amended by striking ``,
the valuation date,''.
(2) Amendments to 1986 code.--
(A) Clause (i) of section 412(c)(1)(A) of the 1986 Code is
amended by striking ``the plan is'' and inserting ``the plan
are''.
(B) Section 412(c)(7) of the 1986 Code is amended by
inserting ``which reduces the accrued benefit of any
participant'' after ``subsection (d)(2)'' in subparagraph
(A).
(C) Section 412(d)(1) of the 1986 Code is amended by
striking ``, the valuation date,''.
(b) Amendments Related to Sections 102 and 112.--
(1) Amendments to erisa.--
(A) Section 303(b) of ERISA is amended to read as follows:
``(b) Target Normal Cost.--For purposes of this section--
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, plus
``(ii) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current
plan year, the increase in such benefit shall be treated as
having accrued during the current plan year.''.
(B) Section 303(c)(5)(B)(iii) of ERISA is amended by
inserting ``beginning'' before ``after 2008''.
(C) Section 303(c)(5)(B)(iv)(II) of ERISA is amended by
inserting ``for such year'' after ``beginning in 2007)''.
(D) Section 303(f)(4)(A) of ERISA is amended by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(E) Section 303(h)(2)(F) of ERISA is amended--
(i) by striking ``section 205(g)(3)(B)(iii)(I)) for such
month'' and inserting ``section 205(g)(3)(B)(iii)(I) for such
month)'', and
(ii) by striking ``subparagraph (B)'' and inserting
``subparagraph (C)''.
(F) Section 303(i) of ERISA is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, determined using the additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target normal
cost (determined without regard to this paragraph) of the
plan for the plan year'' and inserting ``the amount
determined under subsection (b)(1)(A)(i) with respect to the
plan for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 303(j)(3) of ERISA--
(i) is amended by adding at the end of subparagraph (A) the
following new sentence: ``In the case of plan years beginning
in 2008, the funding shortfall for the preceding plan year
may be determined using such methods of estimation as the
Secretary of the Treasury may provide.'',
(ii) by adding at the end of subparagraph (E) the following
new clause:
``(iii) Plan with alternate valuation date.--The Secretary
of the Treasury shall prescribe regulations for the
application of this paragraph in the case of a plan which has
a valuation date other than the first day of the plan
year.'', and
(iii) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 303(k)(6)(B) of ERISA is amended by striking
``, except'' and all that follows and inserting a period.
(2) Amendments to 1986 code.--
(A) Section 430(b) of the 1986 Code is amended to read as
follows:
``(b) Target Normal Cost.--For purposes of this section--
[[Page S16050]]
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, plus
``(ii) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current
plan year, the increase in such benefit shall be treated as
having accrued during the current plan year.''.
(B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended
by inserting ``beginning'' before ``after 2008''.
(C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is
amended by inserting ``for such year'' after ``beginning in
2007)''.
(D) Section 430(f) of the 1986 Code is amended--
(i) by striking ``as of the first day of the plan year''
the second place it appears in the first sentence of
paragraph (3)(A),
(ii) by striking ``paragraph (2)'' in paragraph (4)(A) and
inserting ``paragraph (3)'',
(iii) by striking ``paragraph (1), (2), or (4) of section
206(g)'' in paragraph (6)(B)(iii) and inserting ``subsection
(b), (c), or (e) of section 436'',
(iv) by striking ``the sum of'' in paragraph (6)(C), and
(v) by striking ``of the Treasury'' in paragraph (8).
(E) Section 430(h)(2) of the 1986 Code is amended--
(i) by inserting ``and target normal cost'' after ``funding
target'' in subparagraph (B),
(ii) by striking ``liabilities'' and inserting ``benefits''
in subparagraph (B),
(iii) by striking ``section 417(e)(3)(D)(i)) for such
month'' in subparagraph (F) and inserting ``section
417(e)(3)(D)(i) for such month)'', and
(iv) by striking ``subparagraph (B)'' in subparagraph (F)
and inserting ``subparagraph (C)''.
(F) Section 430(i) of the 1986 Code is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, determined using the additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target normal
cost (determined without regard to this paragraph) of the
plan for the plan year'' and inserting ``the amount
determined under subsection (b)(1)(A)(i) with respect to the
plan for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 430(j)(3) of the 1986 Code is amended--
(i) by adding at the end of subparagraph (A) the following
new sentence: ``In the case of plan years beginning in 2008,
the funding shortfall for the preceding plan year may be
determined using such methods of estimation as the Secretary
may provide.'',
(ii) by striking ``section 302(c)'' in subparagraph
(D)(ii)(II) and inserting ``section 412(c)'',
(iii) by adding at the end of subparagraph (E) the
following new clause:
``(iii) Plan with alternate valuation date.--The Secretary
shall prescribe regulations for the application of this
paragraph in the case of a plan which has a valuation date
other than the first day of the plan year.'', and
(iv) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 430(k) of the 1986 Code is amended--
(i) by inserting ``(as provided under paragraph (2))''
after ``applies'' in paragraph (1), and
(ii) by striking ``, except'' and all that follows in
paragraph (6)(B) and inserting a period.
(c) Amendments Related to Sections 103 and 113.--
(1) Amendments to erisa.--
(A) Section 101(j) of ERISA is amended--
(i) in paragraph (2), by striking ``section 206(g)(4)(B)''
and inserting ``section 206(g)(4)(A)''; and
(ii) by adding at the end the following: ``The Secretary of
the Treasury, in consultation with the Secretary, shall have
the authority to prescribe rules applicable to the notices
required under this subsection.''.
(B) Section 206(g)(1)(B)(ii) of ERISA is amended by
striking ``a funding'' and inserting ``an adjusted funding''.
(C) The heading for section 206(g)(1)(C) of ERISA is
amended by inserting ``benefit'' after ``event''.
(D) Section 206(g)(3)(E) of ERISA is amended by adding at
the end the following new flush sentence:
``Such term shall not include the payment of a benefit which
under section 203(e) may be immediately distributed without
the consent of the participant.''.
(E) Section 206(g)(5)(A)(iv) of ERISA is amended by
inserting ``adjusted'' before ``funding''.
(F) Section 206(g)(9)(C) of ERISA is amended--
(i) by striking ``without regard to this subparagraph and''
in clause (i), and
(ii) in clause (iii)--
(I) by striking ``without regard to this subparagraph'' and
inserting ``without regard to the reduction in the value of
assets under section 303(f)(4)'', and
(II) by inserting ``beginning'' before ``after'' each place
it appears.
(G) Section 206(g) of ERISA is amended by redesignating
paragraph (10) as paragraph (11) and by inserting after
paragraph (9) the following new paragraph:
``(10) Secretarial authority for plans with alternate
valuation date.--In the case of a plan which has designated a
valuation date other than the first day of the plan year, the
Secretary of the Treasury may prescribe rules for the
application of this subsection which are necessary to reflect
the alternate valuation date.''.
(H) Section 502(c)(4) of ERISA is amended by striking ``by
any person'' and all that follows through the period and
inserting ``by any person of subsection (j), (k), or (l) of
section 101 or section 514(e)(3).''.
(2) Amendments to 1986 code.--
(A) Section 436(b)(2) of the 1986 Code is amended--
(i) by striking ``section 303'' and inserting ``section
430'' in the matter preceding subparagraph (A), and
(ii) by striking ``a funding'' and inserting ``an adjusted
funding'' in subparagraph (B).
(B) Section 436(b)(3) of the 1986 Code is amended--
(i) by inserting ``benefit'' after ``event'' in the
heading, and
(ii) by striking ``any event'' in subparagraph (B) and
inserting ``an event''.
(C) Section 436(d)(5) of the 1986 Code is amended by adding
at the end the following new flush sentence:
``Such term shall not include the payment of a benefit which
under section 411(a)(11) may be immediately distributed
without the consent of the participant.''.
(D) Section 436(f) of the 1986 Code is amended--
(i) by inserting ``adjusted'' before ``funding'' in
paragraph (1)(D), and
(ii) by striking ``prefunding balance under section 430(f)
or funding standard carryover balance'' in paragraph (2) and
inserting ``prefunding balance or funding standard carryover
balance under section 430(f)''.
(E) Section 436(j)(3) of the 1986 Code is amended--
(i) in subparagraph (A)--
(I) by striking ``without regard to this paragraph and'',
(II) by striking ``section 430(f)(4)(A)'' and inserting
``section 430(f)(4)'', and
(III) by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)'', and
(ii) in subparagraph (C)--
(I) by striking ``without regard to this paragraph'' and
inserting ``without regard to the reduction in the value of
assets under section 430(f)(4)'', and
(II) by inserting ``beginning'' before ``after'' each place
it appears.
(F) Section 436 of the 1986 Code is amended by
redesignating subsection (k) as subsection (m) and by
inserting after subsection (j) the following new subsections:
``(k) Secretarial Authority for Plans With Alternate
Valuation Date.--In the case of a plan which has designated a
valuation date other than the first day of the plan year, the
Secretary may prescribe rules for the application of this
section which are necessary to reflect the alternate
valuation date.
``(l) Single-Employer Plan.--For purposes of this section,
the term `single-employer plan' means a plan which is not a
multiemployer plan.''.
(3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and
113(b)(2)(A)(ii) of the 2006 Act are each amended--
(A) by striking ``subsection'' and inserting ``section'',
and
(B) by striking ``subparagraph'' and inserting
``paragraph''.
(d) Amendments Related to Sections 107 and 114.--
(1) Amendments to erisa.--
(A) Section 103(d) of ERISA is amended--
(i) in paragraph (3), by striking ``the normal costs, the
accrued liabilities'' and inserting ``the normal costs or
target normal costs, the accrued liabilities or funding
target'', and
(ii) by striking paragraph (7) and inserting the following
new paragraph:
``(7) A certification of the contribution necessary to
reduce the minimum required contribution determined under
section 303, or the accumulated funding deficiency determined
under section 304, to zero.''.
(B) Section 4071 of ERISA is amended by striking ``as
section 303(k)(4) or 307(e)'' and inserting ``or section
303(k)(4),''.
(2) Amendments to 1986 code.--
(A) Section 401(a)(29) of the 1986 Code is amended by
striking ``on plans in at-risk status'' in the heading.
(B) Section 401(a)(32)(C) of the 1986 Code is amended--
[[Page S16051]]
(i) by striking ``section 430(j)'' and inserting ``section
430(j)(3)'', and
(ii) by striking ``paragraph (5)(A)'' and inserting
``section 430(j)(4)(A)''.
(C) Section 401(a)(33) of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subparagraph
(B)(iii) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(b)(2) (without regard to
subparagraph (B) thereof)'' in subparagraph (D) and inserting
``section 412(b)(1), without regard to section 412(b)(2)''.
(D) Section 411 of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subsection
(a)(3)(C) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(e)(2)'' in subsection
(d)(6)(A) and inserting ``section 412(d)(2)''.
(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended
to read as follows:
``(I) the sum of the funding target and target normal cost
determined under section 430, over''.
(F) Section 4971 of the 1986 Code is amended--
(i) by striking ``required minimum'' in subsection (b)(1)
and inserting ``minimum required'',
(ii) by inserting ``or unpaid minimum required
contribution, whichever is applicable'' after ``accumulated
funding deficiency'' each place it appears in subsections
(c)(3) and (d)(1), and
(iii) by striking ``section 412(a)(1)(A)'' in subsection
(e)(1) and inserting ``section 412(a)(2)''.
(3) Amendment to 2006 act.--Section 114 of the 2006 Act is
amended by adding at the end the following new subsection:
``(g) Effective Dates.--
``(1) In general.--The amendments made by this section
shall apply to plan years beginning after 2007.
``(2) Excise tax.--The amendments made by subsection (e)
shall apply to taxable years beginning after 2007, but only
with respect to plan years described in paragraph (1) which
end with or within any such taxable year.''.
(e) Amendment Related to Section 116.--Section
409A(b)(3)(A)(ii) of the 1986 Code is amended by inserting
``to an applicable covered employee'' after ``under the
plan''.
SEC. 3. AMENDMENTS RELATED TO TITLE II.
(a) Amendment Related to Sections 201 and 211.--Section
201(b)(2)(A) of the 2006 Act is amended by striking ``has not
used'' and inserting ``has not adopted, or ceased using,''.
(b) Amendments Related to Sections 202 and 212.--
(1) Amendments to erisa.--
(A) Section 305(b)(3)(C) of ERISA is amended by striking
``section 101(b)(4)'' and inserting ``section 101(b)(1)''.
(B) Section 305(b)(3)(D) of ERISA is amended by striking
``The Secretary'' in clause (iii) and inserting ``The
Secretary of the Treasury, in consultation with the
Secretary''.
(C) Section 305(c)(7) of ERISA is amended--
(i) by striking ``to agree on'' and all that follows in
subparagraph (A)(ii) and inserting ``to adopt a contribution
schedule with terms consistent with the funding improvement
plan and a schedule from the plan sponsor,'', and
(ii) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.'', and
(iii) by adding at the end the following new subparagraph:
``(C) Failure to make scheduled contributions.--Any failure
to make a contribution under a schedule of contribution rates
provided under this paragraph shall be treated as a
delinquent contribution under section 515 and shall be
enforceable as such.''.
(D) Section 305(e) of ERISA is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in clause
(i)(II) and inserting ``to adopt a contribution schedule with
terms consistent with the rehabilitation plan and a schedule
from the plan sponsor under paragraph (1)(B)(i),'',
(II) by striking clause (ii) and inserting the following
new clause:
``(ii) Date of implementation.--The date specified in this
clause is the date which is 180 days after the date on which
the collective bargaining agreement described in clause (i)
expires.'', and
(III) by adding at the end the following new clause:
``(iii) Failure to make scheduled contributions.--Any
failure to make a contribution under a schedule of
contribution rates provided under this subsection shall be
treated as a delinquent contribution under section 515 and
shall be enforceable as such.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph (A)(ii),
and
(II) by striking ``and taking'' in subparagraph (B) and
inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and inserting ``the
last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)(C)(iii)--
(I) by striking ``the Secretary'' in subclause (I) and
inserting ``the Secretary of the Treasury, in consultation
with the Secretary'', and
(II) by striking ``Secretary'' in the last sentence and
inserting ``Secretary of the Treasury'', and
(v) by striking ``an employer's withdrawal liability'' in
paragraph (9)(B) and inserting ``the allocation of unfunded
vested benefits to an employer''.
(E) Section 305(g) of ERISA is amended by inserting ``under
subsection (c)'' after ``funding improvement plan'' the first
place it appears.
(F) Section 302(b)(3) of ERISA is amended by striking ``the
plan adopts'' and inserting ``the plan sponsor adopts''.
(G) Section 502(c)(2) of ERISA is amended by striking
``101(b)(4)'' and inserting ``101(b)(1)''.
(H) Section 502(c)(8)(A) of ERISA is amended by inserting
``plan'' after ``multiemployer''.
(2) Amendments to 1986 code.--
(A) Section 432(b)(3)(C) of the 1986 Code is amended by
striking ``section 101(b)(4)'' and inserting ``section
101(b)(1)''.
(B) Section 432(b)(3)(D)(iii) of the 1986 Code is amended
by striking ``The Secretary of Labor'' and inserting ``The
Secretary, in consultation with the Secretary of Labor''.
(C) Section 432(c) of the 1986 Code is amended--
(i) in paragraph (3), by striking ``section 304(d)'' in
subparagraph (A)(ii) and inserting ``section 431(d)'', and
(ii) in paragraph (7)--
(I) by striking ``to agree on'' and all that follows in
subparagraph (A)(ii) and inserting ``to adopt a contribution
schedule with terms consistent with the funding improvement
plan and a schedule from the plan sponsor,'', and
(II) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.''.
(D) Section 432(e) of the 1986 Code is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in clause
(i)(II) and inserting ``to adopt a contribution schedule with
terms consistent with the rehabilitation plan and a schedule
from the plan sponsor under paragraph (1)(B)(i),'', and
(II) by striking clause (ii) and inserting the following
new clause:
``(ii) Date of implementation.--The date specified in this
clause is the date which is 180 days after the date on which
the collective bargaining agreement described in clause (i)
expires.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph (A)(ii),
and
(II) by striking ``and taking'' in subparagraph (B) and
inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and inserting ``the
last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)--
(I) by striking ``section 204(g)'' in subparagraph (A)(i)
and inserting ``section 411(d)(6)'',
(II) by inserting ``of the Employee Retirement Income
Security Act of 1974'' after ``4212(a)'' in subparagraph
(C)(i)(II),
(III) by striking ``the Secretary of Labor'' in
subparagraph (C)(iii)(I) and inserting ``the Secretary, in
consultation with the Secretary of Labor'', and
(IV) by striking ``the Secretary of Labor'' in the last
sentence of subparagraph (C)(iii) and inserting ``the
Secretary'', and
(v) by striking ``an employer's withdrawal liability'' in
paragraph (9)(B) and inserting ``the allocation of unfunded
vested benefits to an employer''.
(E) Section 432(f)(2)(A)(i) of the 1986 Code is amended by
striking ``section 411(b)(1)(A)'' and inserting ``section
411(a)(9)''.
(F) Section 432(g) of the 1986 Code is amended by inserting
``under subsection (c)'' after ``funding improvement plan''
the first place it appears.
(G) Section 432(i) of the 1986 Code is amended--
(i) by striking ``section 412(a)'' in paragraph (3) and
inserting ``section 431(a)'', and
(ii) by striking paragraph (9) and inserting the following
new paragraph:
``(9) Plan sponsor.--For purposes of this section, section
431, and section 4971(g)--
``(A) In general.--The term `plan sponsor' means, with
respect to any multiemployer plan, the association,
committee, joint board of trustees, or other similar group of
representatives of the parties who establish or maintain the
plan.
``(B) Special rule for section 404(c) plans.--In the case
of a plan described in section 404(c) (or a continuation of
such plan), such term means the bargaining parties described
in paragraph (1).''.
(H) Section 412(b)(3) of the 1986 Code is amended by
striking ``the plan adopts'' and inserting ``the plan sponsor
adopts''.
(I) Section 4971(g)(4) of the 1986 Code is amended--
(i) in subparagraph (B)(ii), by striking ``first day of''
and inserting ``day following the close of'', and
(ii) by striking clause (ii) of subparagraph (C) and
inserting the following new clause:
[[Page S16052]]
``(ii) Plan sponsor.--For purposes of clause (i), the term
`plan sponsor' has the meaning given such term by section
432(i)(9).''.
(3) Amendments to 2006 act.--
(A) Section 212(b)(2) of the 2006 Act is amended by
striking ``Section 4971(c)(2) of such Code'' and inserting
``Section 4971(e)(2) of such Code''.
(B) Section 212(e)(1) of the 2006 Act is amended by
inserting ``, except that the amendments made by subsection
(b) shall apply to taxable years beginning after 2007, but
only with respect to plan years beginning after 2007 which
end with or within any such taxable year'' before the period
at the end.
(C) Section 212(e)(2) of the 2006 Act is amended by
striking ``section 305(b)(3) of the Employee Retirement
Income Security Act of 1974'' and inserting ``section
432(b)(3) of the Internal Revenue Code of 1986''.
SEC. 4. AMENDMENTS RELATED TO TITLE III.
(a) Amendment Related to Section 301.--Clause (ii) of
section 101(c)(2)(A) of the Pension Funding Equity Act of
2004, as amended by section 301(c) of the 2006 Act, is
amended by striking ``2008'' and inserting ``2009''.
(b) Amendments Related to Section 302.--
(1) Amendment to erisa.--Section 205(g)(3)(B)(iii)(II) of
ERISA is amended by striking ``section
205(g)(3)(B)(iii)(II)'' and inserting ``section
205(g)(3)(A)(ii)(II)''.
(2) Amendments to 1986 code.--
(A) Section 417(e)(3)(D)(i) of the 1986 Code is amended by
striking ``clause (ii)'' and inserting ``subparagraph (C)''.
(B) Section 415(b)(2)(E)(v) of the 1986 Code is amended to
read as follows:
``(v) For purposes of adjusting any benefit or limitation
under subparagraph (B), (C), or (D), the mortality table used
shall be the applicable mortality table (within the meaning
of section 417(e)(3)(B)).''.
SEC. 5. AMENDMENTS RELATED TO TITLE IV.
(a) Amendment Related to Section 401.--Section
4006(a)(3)(A)(i) of ERISA is amended by striking ``1990'' and
inserting ``2005''.
(b) Amendment Related to Section 402.--Section 402(c)(1)(A)
of the 2006 Act is amended by striking ``commercial airline''
and inserting ``commercial''.
(c) Amendment Related to Section 408.--Section 4044(e) of
ERISA, as added by section 408(b)(2) of the 2006 Act, is
redesignated as subsection (f).
(d) Amendments Related to Section 409.--Section
4041(b)(5)(A) of ERISA is amended by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B) and (D)''.
(e) Amendments Related to Section 410.--Section
4050(d)(4)(A) of ERISA is amended--
(1) by striking ``and'' at the end of clause (i), and
(2) by striking clause (ii) and inserting the following new
clauses:
``(ii) which is not a plan described in paragraph (2), (3),
(4), (6), (7), (8), (9), (10), or (11) of section 4021(b),
and
``(iii) which, was a plan described in section 401(a) of
the Internal Revenue Code of 1986 which includes a trust
exempt from tax under section 501(a) of such Code, and''.
SEC. 6. AMENDMENTS RELATED TO TITLE V.
(a) Amendment Related to Section 501.--Section
101(f)(2)(B)(ii) of ERISA is amended--
(1) by striking ``for which the latest annual report filed
under section 104(a) was filed'' in subclause (I)(aa) and
inserting ``to which the notice relates'', and
(2) by striking subclause (II) and inserting the following
new subclause:
``(II) in the case of a multiemployer plan, a statement,
for the plan year to which the notice relates and the
preceding 2 plan years, of the value of the plan assets
(determined both in the same manner as under section 304 and
under the rules of subclause (I)(bb)) and the value of the
plan liabilities (determined in the same manner as under
section 304 except that the method specified in section
305(i)(8) shall be used),''.
(b) Amendments Related to Section 502.--
(1) Section 101(k)(2) of ERISA is amended by filing at the
end the following new flush sentence:
``Subparagraph (C)(i) shall not apply to individually
identifiable information with respect to any plan investment
manager or adviser, or with respect to any other person
(other than an employee of the plan) preparing a financial
report required to be included under paragraph (1)(B).''.
(2) Section 4221 of ERISA is amended by striking subsection
(e) and by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
(c) Amendments Related to Section 503.--
(1) Amendments to erisa.--
(A) Section 104(b)(3) of ERISA is amended by--
(i) striking ``section 103(f)'' and inserting ``section
101(f)'', and
(ii) striking ``the administrators'' and inserting ``the
administrator''.
(B) Section 104(d)(1)(E)(ii) of ERISA is amended by
inserting ``funding'' after ``plan's''.
(2) Amendments to 2006 act.--Section 503(e) of the 2006 Act
is amended by striking ``section 101(f)'' and inserting
``section 104(d)''.
(d) Amendment Related to Section 505.--Section
4010(d)(2)(B) of ERISA is amended by striking ``section
302(d)(2)'' and inserting ``section 303(d)(2)''.
(e) Amendments Related to Section 506.--
(1) Section 4041(c)(2)(D)(i) of ERISA is amended by
striking ``subsection (a)(2)'' the second place it appears
and inserting ``subparagraph (A) or the regulations under
subsection (a)(2)''.
(2) Section 4042(c)(3)(C)(i) of ERISA is amended--
(A) by striking ``and plan sponsor'' and inserting ``, the
plan sponsor, or the corporation'', and
(B) by striking ``subparagraph (A)(i)'' and inserting
``subparagraph (A)''.
(f) Amendments Related to Section 508.--Section 209(a) of
ERISA is amended--
(1) in paragraph (1)--
(A) by striking ``regulations prescribed by the Secretary''
and inserting ``such regulations as the Secretary may
prescribe'', and
(B) by striking the last sentence and inserting ``The
report required under this paragraph shall be in the same
form, and contain the same information, as periodic benefit
statements under section 105(a).'', and
(2) by striking paragraph (2) and inserting the following:
``(2) If more than one employer adopts a plan, each such
employer shall furnish to the plan administrator the
information necessary for the administrator to maintain the
records, and make the reports, required by paragraph (1).
Such administrator shall maintain the records, and make the
reports, required by paragraph (1).''
(g) Amendment Related to Section 509.--Section 101(i)(8)(B)
of ERISA is amended to read as follows:
``(B) One-participant retirement plan.--For purposes of
subparagraph (A), the term `one-participant retirement plan'
means a retirement plan that on the first day of the plan
year--
``(i) covered only one individual (or the individual and
the individual's spouse) and the individual (or the
individual and the individual's spouse) owned 100 percent of
the plan sponsor (whether or not incorporated), or
``(ii) covered only one or more partners (or partners and
their spouses) in the plan sponsor.''.
SEC. 7. AMENDMENTS RELATED TO TITLE VI.
(a) Amendments Related to Section 601.--
(1) Amendments to erisa.--
(A) Section 408(g)(3)(D)(ii) of ERISA is amended by
striking ``subsection (b)(14)(B)(ii)'' and inserting
``subsection (b)(14)(A)(ii)''.
(B) Section 408(g)(6)(A)(i) of ERISA is amended by striking
``financial adviser'' and inserting ``fiduciary adviser''.
(C) Section 408(g)(11)(A) of ERISA is amended--
(i) by striking ``the participant'' each place it appears
and inserting ``a participant'', and
(ii) by striking ``section 408(b)(4)'' in clause (ii) and
inserting ``subsection (b)(4)''.
(2) Amendments to 1986 code.--
(A) Section 4975(d)(17) of the 1986 Code, in the matter
preceding subparagraph (A), is amended by striking ``and that
permits'' and inserting ``that permits''.
(B) Section 4975(f)(8) of the 1986 Code is amended--
(i) in subparagraph (A), by striking ``subsection (b)(14)''
and inserting ``subsection (d)(17)'',
(ii) in subparagraph (C)(iv)(II), by striking ``subsection
(b)(14)(B)(ii)'' and inserting ``(d)(17)(A)(ii)'',
(iii) in subparagraph (F)(i)(I), by striking ``financial
adviser'' and inserting ``fiduciary adviser,'',
(iv) in subparagraph (I), by striking ``section 406'' and
inserting ``subsection (c)'', and
(v) in subparagraph (J)(i)--
(I) by striking ``the participant'' each place it appears
and inserting ``a participant'',
(II) in the matter preceding subclause (I), by inserting
``referred to in subsection (e)(3)(B)'' after ``investment
advice'', and
(III) in subclause (II), by striking ``section 408(b)(4)''
and inserting ``subsection (d)(4)''.
(3) Amendment to 2006 act.--Section 601(b)(4) of the 2006
Act is amended by striking ``section 4975(c)(3)(B)'' and
inserting ``section 4975(e)(3)(B)''.
(b) Amendments Related to Section 611.--
(1) Amendment to erisa.--Section 408(b)(18)(C) of ERISA is
amended by striking ``or less''.
(2) Amendments to 1986 code.--Section 4975(d) of the 1986
Code is amended--
(A) in the matter preceding subparagraph (A) of paragraph
(18)--
(i) by striking ``party in interest'' and inserting
``disqualified person'', and
(ii) by striking ``subsection (e)(3)(B)'' and inserting
``subsection (e)(3)'',
(B) in paragraphs (19), (20), and (21), by striking ``party
in interest'' each place it appears and inserting
``disqualified person'', and
(C) by striking ``or less'' in paragraph (21)(C).
(c) Amendments Related to Section 612.--Section
4975(f)(11)(B)(i) of the 1986 Code is amended by--
(1) inserting ``of the Employee Retirement Income Security
Act of 1974'' after ``section 407(d)(1)'', and
(2) inserting ``of such Act'' after ``section 407(d)(2)''.
(d) Amendments Related to Section 621.--Section 404(c)(1)
of ERISA is amended--
(1) by inserting ``(or any period that would be a blackout
period but for the fact that it is a period of 3 consecutive
business days or less)'' after ``blackout period'' in
subparagraph (A)(ii), and
(2) by inserting the following new sentence at the end of
subparagraph (B): ``In the case of any period that would be a
blackout period but for the fact that it is a period of 3
consecutive business days or less, the preceding sentence
shall apply to such period if the person referred to in
subparagraph (A)(ii) meets the requirements described in the
preceding sentence with respect to such period
[[Page S16053]]
in the same manner as if it were a blackout period.''
(e) Amendments Related to Section 624.--Section 404(c)(5)
of ERISA is amended by striking ``participant'' each place it
appears and inserting ``participant or beneficiary''.
SEC. 8. AMENDMENTS RELATED TO TITLE VII.
(1) Amendments to erisa.--
(A) Section 203(f)(1)(B) of ERISA is amended to read as
follows:
``(B) the requirements of section 204(c) or 205(g), or the
requirements of subsection (e), with respect to accrued
benefits derived from employer contributions,''.
(B) Section 204(b)(5) of ERISA is amended--
(i) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(ii) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(C) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is
amended to read as follows:
``(II) Preservation of capital.--An applicable defined
benefit plan shall be treated as failing to meet the
requirements of paragraph (1)(H) unless the plan provides
that an interest credit (or equivalent amount) of less than
zero shall in no event result in the account balance or
similar amount being less than the aggregate amount of
contributions credited to the account.''.
(2) Amendments to 1986 code.--
(A) Section 411(b)(5) of the 1986 Code is amended--
(i) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(ii) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(B) Section 411(a)(13)(A) of the 1986 Code is amended--
(i) by striking ``paragraph (2)'' in clause (i) and
inserting ``subparagraph (B)'',
(ii) by striking clause (ii) and inserting the following
new clause:
``(ii) the requirements of subsection (a)(11) or (c), or
the requirements of section 417(e), with respect to accrued
benefits derived from employer contributions,'', and
(iii) by striking ``paragraph (3)'' in the matter following
clause (ii) and inserting ``subparagraph (C)''.
(C) Subclause (II) of section 411(b)(5)(B)(i) of the 1986
Code is amended to read as follows:
``(II) Preservation of capital.--An applicable defined
benefit plan shall be treated as failing to meet the
requirements of paragraph (1)(H) unless the plan provides
that an interest credit (or equivalent amount) of less than
zero shall in no event result in the account balance or
similar amount being less than the aggregate amount of
contributions credited to the account.''.
(3) Amendments to 2006 act.--
(A) Section 701(d)(2) of the 2006 Act is amended by
striking ``204(g)'' and inserting ``205(g)''.
(B) Section 701(e) of the 2006 Act is amended--
(i) by inserting ``on or'' after ``period'' in paragraph
(3),
(ii) in paragraph (4)--
(I) by inserting ``the earlier of'' after ``before'' in the
matter preceding subparagraph (A), and
(II) by striking ``earlier'' and inserting ``later'' in
subparagraph (A),
(iii) by inserting ``on or'' before ``after'' each place it
appears in paragraph (5), and
(iv) by adding at the end the following new paragraph:
``(6) Special rule for vesting requirements.--The
requirements of section 203(f)(2) of the Employee Retirement
Income Security Act of 1974 and section 411(a)(13)(B) of the
Internal Revenue Code of 1986 (as added by this Act)--
``(A) shall not apply to a participant who does not have an
hour of service after the effective date of such requirements
(as otherwise determined under this subsection); and
``(B) in the case of a plan other than a plan described in
paragraph (3) or (4), shall apply to plan years ending on or
after June 29, 2005.''.
SEC. 9. AMENDMENTS RELATED TO TITLE VIII.
(a) Amendments Related to Section 801.--
(1) Section 404(o) of the 1986 Code is amended--
(A) by striking ``430(g)(2)'' in paragraph (2)(A)(ii) and
inserting ``430(g)(3)'', and
(B) by striking ``412(f)(4)'' in paragraph (4)(B) and
inserting ``412(d)(3)''.
(2) Section 404(a)(7)(A) of the 1986 Code is amended--
(A) by striking the next to last sentence, and
(B) by striking ``the plan's funding shortfall determined
under section 430'' in the last sentence and inserting ``the
excess (if any) of the plan's funding target (as defined in
section 430(d)(1)) over the value of the plan's assets (as
determined under section 430(g)(3))''.
(b) Amendment Related to Section 803.--Clause (iii) of
section 404(a)(7)(C) of the 1986 Code is amended to read as
follows:
``(iii) Limitation.--In the case of employer contributions
to 1 or more defined contribution plans--
``(I) if such contributions do not exceed 6 percent of the
compensation otherwise paid or accrued during the taxable
year to the beneficiaries under such plans, this paragraph
shall not apply to such contributions or to employer
contributions to the defined benefit plans to which this
paragraph would otherwise apply by reason of contributions to
the defined contribution plans, and
``(II) if such contributions exceed 6 percent of such
compensation, this paragraph shall be applied by only taking
into account such contributions to the extent of such excess.
For purposes of this clause, amounts carried over from
preceding taxable years under subparagraph (B) shall be
treated as employer contributions to 1 or more defined
contributions plans to the extent attributable to employer
contributions to such plans in such preceding taxable
years.''.
(c) Amendments Related to Section 824.--
(1) Section 408A(c)(3)(B) of the 1986 Code, as in effect
after the amendments made by section 824(b)(1) of the 2006
Act, is amended--
(A) by striking the second ``an'' before ``eligible'',
(B) by striking ``other than a Roth IRA'', and
(C) by adding at the end the following new flush sentence:
``This subparagraph shall not apply to a qualified rollover
contribution from a Roth IRA or to a qualified rollover
contribution from a designated Roth account which is a
rollover contribution described in section 402A(c)(3)(A).''
(2) Section 408A(d)(3)(B), as in effect after the
amendments made by section 824(b)(2)(B) of the 2006 Act, is
amended by striking ``(other than a Roth IRA)'' and by
inserting at the end the following new sentence: ``This
paragraph shall not apply to a distribution which is a
qualified rollover contribution from a Roth IRA or a
qualified rollover contribution from a designated Roth
account which is a rollover contribution described in section
402A(c)(3)(A)''.
(d) Amendment to Section 827.--The first sentence of
section 72(t)(2)(G)(iv) of the 1986 Code is amended by
inserting ``on or'' before ``before''.
(e) Amendments Related to Section 829.--
(1) Section 402(c)(11) of the 1986 Code is amended--
(A) by inserting ``described in paragraph (8)(B)(iii)''
after ``eligible retirement plan'' in subparagraph (A), and
(B) by striking ``trust'' before ``designated beneficiary''
in subparagraph (B).
(2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``Such term
shall include any distribution which is treated as an
eligible rollover distribution by reason of section
403(a)(4)(B), 403(b)(8)(B), or 457(e)(16)(B).''
(B) Clause (i) of section 402(c)(11) of the 1986 Code is
amended by striking ``for purposes of this subsection''.
(C) The amendments made by this paragraph shall apply with
respect to plan years beginning after December 31, 2008.
(f) Amendment Related to Section 832.--Section 415(f) of
the 1986 Code is amended by striking paragraph (2) and by
redesignating paragraph (3) as paragraph (2).
(g) Amendments Related to Section 833.--
(1) Section 408A(c)(3)(C) of the 1986 Code, as added by
section 833(c) of the 2006 Act, is redesignated as
subparagraph (E).
(2) In the case of taxable years beginning after December
31, 2009, section 408A(c)(3)(E) of the 1986 Code (as
redesignated by paragraph (1))--
(A) is redesignated as subparagraph (D), and
(B) is amended by striking ``subparagraph (C)(ii)'' and
inserting ``subparagraph (B)(ii)''.
(h) Amendments Related to Section 841.--
(1) Section 420(c)(1)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``In the case
of a qualified future transfer or collectively bargained
transfer to which subsection (f) applies, any assets so
transferred may also be used to pay liabilities described in
subsection (f)(2)(C).''
(2) Section 420(f)(2) of the 1986 Code is amended by
striking ``such'' before ``the applicable'' in subparagraph
(D)(i)(I).
(3) Section 4980(c)(2)(B) of the 1986 Code is amended by
striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) any transfer described in section
420(f)(2)(B)(ii)(II).''.
(i) Amendments Related to Section 845.--
(1) Subsection (l) of section 402 of the 1986 Code is
amended--
(A) in paragraph (1)--
(i) by inserting ``maintained by the employer described in
paragraph (4)(B)'' after ``an eligible retirement plan'', and
(ii) by striking ``of the employee, his spouse, or
dependents (as defined in section 152)'' ,
(B) in paragraph (4)(D), by--
(i) inserting ``(as defined in section 152)'' after
``dependents'', and
(ii) striking ``health insurance plan'' and inserting
``health plan'', and
(C) in paragraph (5)(A), by striking ``health insurance
plan'' and inserting ``health plan''.
(2) Subparagraph (B) of section 402(l)(3) of the 1986 Code
is amended by striking ``all amounts distributed from all
eligible retirement plans were treated as 1 contract for
purposes of determining the inclusion of such distribution
under section 72'' and inserting ``all amounts to the credit
of the eligible public safety officer in all eligible
retirement plans maintained by the employer described in
paragraph (4)(B) were distributed during such taxable year
and all such plans were treated as 1 contract for purposes of
determining under section 72 the aggregate amount which would
have been so includible''.
(j) Amendments Related to Section 854.--
(1) Section 3121(b)(5)(E) of the 1986 Code is amended by
striking ``or special trial judge''.
(2) Section 210(a)(5)(E) of the Social Security Act is
amended by striking ``or special trial judge''.
(k) Amendments Related to Section 856.--Section 856 of the
2006 Act, and the
[[Page S16054]]
amendments made by such section, are hereby repealed, and the
Internal Revenue Code of 1986 shall be applied and
administered as if such sections and amendments had not been
enacted.
(l) Amendment Related to Section 864.--Section 864(a) of
the 2006 Act is amended by striking ``Reconciliation''.
SEC. 10. AMENDMENTS RELATED TO TITLE IX.
(a) Amendment Related to Section 901.--Section
401(a)(35)(E)(iv) of the 1986 Code is amended to read as
follows:
``(iv) One-participant retirement plan.--For purposes of
clause (iii), the term `one-participant retirement plan'
means a retirement plan that on the first day of the plan
year--
``(I) covered only one individual (or the individual and
the individual's spouse) and the individual (or the
individual and the individual's spouse) owned 100 percent of
the plan sponsor (whether or not incorporated), or
``(II) covered only one or more partners (or partners and
their spouses) in the plan sponsor.''.
(b) Amendments Related to Section 902.--
(1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended
by striking ``such compensation as exceeds 1 percent but does
not'' and inserting ``such contributions as exceed 1 percent
but do not''.
(2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code
are each amended--
(A) by striking ``an erroneous automatic contribution'' and
inserting ``a permissible withdrawal'', and
(B) by striking ``erroneous automatic contribution'' in the
heading and inserting ``permissible withdrawal''.
(3) Section 402(g)(2)(A)(ii) of the 1986 Code is amended by
inserting ``through the end of such taxable year'' after
``such amount''.
(4) Section 414(w)(3) of the 1986 Code is amended--
(A) in subparagraph (B), by inserting ``and'' after the
comma at the end,
(B) by striking subparagraph (C), and
(C) by redesignating subparagraph (D) as subparagraph (C).
(5) Section 414(w)(5) of the 1986 Code is amended by
striking ``and'' at the end of subparagraph (B), by striking
the period at the end of subparagraph (C) and inserting a
comma, and by adding at the end the following:
``(D) a simplified employee pension the terms of which
provide for a salary reduction arrangement described in
section 408(k)(6), and
``(E) a simple retirement account (as defined in section
408(p)).''.
(6) Section 414(w)(6) of the 1986 Code is amended by
inserting ``or for purposes of applying the limitation under
section 402(g)(1)'' before the period at the end.
(c) Amendments Related to Section 903.--
(1) Amendment of 1986 code.--Section 414(x)(1) of the 1986
Code is amended by adding at the end of paragraph (1) the
following new sentence: ``In the case of a termination of the
defined benefit plan and the applicable defined contribution
plan forming part of an eligible combined plan, the plan
administrator shall terminate each such plan separately.''
(2) Amendments of erisa.--Section 210(e) of ERISA is
amended--
(A) by adding at the end of paragraph (1) the following new
sentence: ``In the case of a termination of the defined
benefit plan and the applicable defined contribution plan
forming part of an eligible combined plan, the plan
administrator shall terminate each such plan separately.'',
and
(B) by striking paragraph (3) and by redesignating
paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5),
respectively.
(d) Amendments Related to Section 906.--
(1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by
striking ``paragraph (1)'' and inserting ``paragraph (10)''.
(2) Section 4021(b) of ERISA is amended by inserting ``or''
at the end of paragraph (12), by striking ``; or'' at the end
of paragraph (13) and inserting a period, and by striking
paragraph (14).
SEC. 11. AMENDMENTS RELATED TO TITLE X.
(a) Amendments to Railroad Retirement Act.--
(1) Section 14(b) of the Railroad Retirement Act of 1974
(45 U.S.C. 231m(b)) is amended by adding at the end the
following:
``(3)(i) Payments made pursuant to paragraph (2) of this
subsection shall not require that the employee be entitled to
an annuity under section 2(a)(1) of this Act: Provided,
however, That where an employee is not entitled to such an
annuity, payments made pursuant to paragraph (2) may not
begin before the month in which the following three
conditions are satisfied:
``(A) The employee has completed ten years of service in
the railroad industry or, five years of service all of which
accrues after December 31, 1995.
``(B) The spouse or former spouse attains age 62.
``(C) The employee attains age 62 (or if deceased, would
have attained age 62).
``(ii) Payments made pursuant to paragraph (2) of this
subsection shall terminate upon the death of the spouse or
former spouse, unless the court document provides for
termination at an earlier date. Notwithstanding the language
in a court order, that portion of payments made pursuant to
paragraph (2) which represents payments computed pursuant to
section 3(f)(2) of this Act shall not be paid after the death
of the employee.
``(iii) If the employee is not entitled to an annuity under
section 2(a)(1) of this Act, payments made pursuant to
paragraph (2) of this subsection shall be computed as though
the employee were entitled to an annuity.''.
(2) Subsection (d) of section 5 of the Railroad Retirement
Act (45 U.S.C. 231d) is repealed.
(b) Effective Dates.--
(1) Subsection (a)(1).--The amendment made by subsection
(a)(1) shall apply with respect to payments due for months
after August 2007. If, prior to the effective date of such
amendment, payment pursuant to paragraph (2) of section 14(b)
of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(b))
was terminated because of the employee's death, payment to
the former spouse may be reinstated for months after August
2007.
(2) Subsection (a)(2).--The amendment made by subsection
(a)(2) shall take effect upon the date of the enactment of
this Act.
SEC. 12. AMENDMENTS RELATED TO TITLE XI.
(a) Amendment Related to Section 1104.--Section 1104(d)(1)
of the 2006 Act is amended by striking ``Act'' the first
place it appears and inserting ``section''.
(b) Amendments Related to Section 1105.--Section 3304(a) of
the 1986 Code is amended--
(1) in paragraph (15)--
(A) by redesignating clauses (i) and (ii) of subparagraph
(A) as subclauses (I) and (II),
(B) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii),
(C) by striking the semicolon at the end of clause (ii) (as
so redesignated) and inserting ``, and'',
(D) by striking ``(15)'' and inserting ``(15)(A) subject to
subparagraph (B),'', and
(E) by adding at the end the following:
``(B) the amount of compensation shall not be reduced on
account of any payments of governmental or other pensions,
retirement or retired pay, annuity, or other similar payments
which are not includible in the gross income of the
individual for the taxable year in which it was paid because
it was part of a rollover distribution;'', and
(2) by striking the last sentence.
(c) Amendments Related to Section 1106.--Section 3(37)(G)
of ERISA is amended by--
(1) striking ``paragraph'' each place it appears in clauses
(ii), (iii), and (v)(I) and inserting ``subparagraph'',
(2) striking ``subclause (i)(II)'' in clause (iii) and
inserting ``clause (i)(II)'',
(3) striking ``subparagraph'' in clause (v)(II) and
inserting ``clause'', and
(4) by striking ``section 101(b)(4)'' in clause (v)(III)
and inserting ``section 101(b)(1)''.
SEC. 13. AMENDMENT RELATED TO TITLE XII.
Section 408(d)(8)(D) of the 1986 Code is amended by
striking ``all amounts distributed from all individual
retirement plans were treated as 1 contract under paragraph
(2)(A) for purposes of determining the inclusion of such
distribution under section 72'' and inserting ``all amounts
in all individual retirement plans of the individual were
distributed during such taxable year and all such plans were
treated as 1 contract for purposes of determining under
section 72 the aggregate amount which would have been so
includible''.
SEC. 14. OTHER PROVISIONS.
(a) Amendments Related to Sections 102 and 112.--
(1) Amendment of erisa.--The last sentence of section
303(g)(3)(B) of ERISA is amended to read as follows: ``Any
such averaging shall be adjusted for contributions,
distributions, and expected earnings (as determined by the
plan's actuary on the basis of an assumed earnings rate
specified by the actuary but not in excess of the third
segment rate applicable under subsection (h)(2)(C)(iii)), as
specified by the Secretary of the Treasury.''.
(2) Amendment of 1986 code.--The last sentence of section
430(g)(3)(B) of the 1986 Code is amended to read as follows:
``Any such averaging shall be adjusted for contributions,
distributions, and expected earnings (as determined by the
plan's actuary on the basis of an assumed earnings rate
specified by the actuary but not in excess of the third
segment rate applicable under subsection (h)(2)(C)(iii)), as
specified by the Secretary.''.
(b) Amendments Related to Section 1004.--
(1) Amendment of erisa.--Paragraph (2) of section 205(d) of
ERISA is amended by adding at the end the following:
``(C) Notwithstanding subparagraph (B), the applicable
percentage is any percentage greater than or equal to 66\2/3\
percent but not more than 75 percent if--
``(i) the plan is a defined contribution plan maintained
for its employees by an employer which is either exempt from
tax under section 501(a) of the Internal Revenue Code of 1986
or aggregated under subsection (b), (c), (m), or (o) of
section 414 of such Code with an organization that is exempt
from tax under section 501(a) of such Code,
``(ii) the survivor annuity percentage for the plan's
qualified joint and survivor annuity is 50 percent, and
``(iii) each participant may elect (subject to the
requirements of subsection (a)) an annuity for the life of
the participant with a survivor annuity for the life of the
spouse which is equal to 100 percent of the amount of the
annuity which is payable during the joint lives of the
participant and spouse and which is the actuarial equivalent
of a single annuity for the life of the participant.''.
(2) Amendment of 1986 code.--Subsection (g) of section 417
of the 1986 Code is amended by adding at the end the
following:
[[Page S16055]]
``(3) Alternative method of compliance.--Notwithstanding
paragraph (2), the applicable percentage is any percentage
greater than or equal to 66\2/3\ percent but not more than 75
percent if--
``(A) the plan is a defined contribution plan maintained
for its employees by an employer which is either exempt from
tax under section 501(a) or aggregated under subsection (b),
(c), (m), or (o) of section 414 with an organization that is
exempt from tax under section 501(a),
``(B) the survivor annuity percentage for the plan's
qualified joint and survivor annuity is 50 percent, and
``(C) each participant may elect (subject to the
requirements of subsection (a)) an annuity for the life of
the participant with a survivor annuity for the life of the
spouse which is equal to 100 percent of the amount of the
annuity which is payable during the joint lives of the
participant and spouse and which is the actuarial equivalent
of a single annuity for the life of the participant.''.
SEC. 15. EFFECTIVE DATE.
Except as otherwise provided in this Act, the amendments
made by this Act shall take effect as if included in the
provisions of the 2006 Act to which the amendments relate.
____________________