[Congressional Record Volume 154, Number 42 (Wednesday, March 12, 2008)]
[House]
[Pages H1598-H1606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PENSION PROTECTION TECHNICAL CORRECTIONS ACT OF 2008
Mr. POMEROY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3361) to make technical corrections related to the Pension
Protection Act of 2006, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3361
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 2008''.
(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,''.
[[Page H1599]]
(b) Amendments Related to Sections 102 and 112.--
(1) Amendments to erisa.--
(A) Section 303(b) of ERISA is amended to read as follows:
``(b) Target Normal Cost.--For purposes of this section--
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, plus
``(ii) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current
plan year, the increase in such benefit shall be treated as
having accrued during the current plan year.''.
(B) Section 303(c)(5)(B)(iii) of ERISA is amended by
inserting ``beginning'' before ``after 2008''.
(C) Section 303(c)(5)(B)(iv)(II) of ERISA is amended by
inserting ``for such year'' after ``beginning in 2007)''.
(D) Section 303(f)(4)(A) of ERISA is amended by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(E) Section 303(h)(2)(F) of ERISA is amended--
(i) by striking ``section 205(g)(3)(B)(iii)(I)) for such
month'' and inserting ``section 205(g)(3)(B)(iii)(I) for such
month)'', and
(ii) by striking ``subparagraph (B)'' and inserting
``subparagraph (C)''.
(F) Section 303(i) of ERISA is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, determined using the additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target normal
cost (determined without regard to this paragraph) of the
plan for the plan year'' and inserting ``the amount
determined under subsection (b)(1)(A)(i) with respect to the
plan for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 303(j)(3) of ERISA--
(i) is amended by adding at the end of subparagraph (A) the
following new sentence: ``In the case of plan years beginning
in 2008, the funding shortfall for the preceding plan year
may be determined using such methods of estimation as the
Secretary of the Treasury may provide.'',
(ii) by adding at the end of subparagraph (E) the following
new clause:
``(iii) Plan with alternate valuation date.--The Secretary
of the Treasury shall prescribe regulations for the
application of this paragraph in the case of a plan which has
a valuation date other than the first day of the plan
year.'', and
(iii) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 303(k)(6)(B) of ERISA is amended by striking
``, except'' and all that follows and inserting a period.
(2) Amendments to 1986 code.--
(A) Section 430(b) of the 1986 Code is amended to read as
follows:
``(b) Target Normal Cost.--For purposes of this section--
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, plus
``(ii) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current
plan year, the increase in such benefit shall be treated as
having accrued during the current plan year.''.
(B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended
by inserting ``beginning'' before ``after 2008''.
(C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is
amended by inserting ``for such year'' after ``beginning in
2007)''.
(D) Section 430(f) of the 1986 Code is amended--
(i) by striking ``as of the first day of the plan year''
the second place it appears in the first sentence of
paragraph (3)(A),
(ii) by striking ``paragraph (2)'' in paragraph (4)(A) and
inserting ``paragraph (3)'',
(iii) by striking ``paragraph (1), (2), or (4) of section
206(g)'' in paragraph (6)(B)(iii) and inserting ``subsection
(b), (c), or (e) of section 436'',
(iv) by striking ``the sum of'' in paragraph (6)(C), and
(v) by striking ``of the Treasury'' in paragraph (8).
(E) Section 430(h)(2) of the 1986 Code is amended--
(i) by inserting ``and target normal cost'' after ``funding
target'' in subparagraph (B),
(ii) by striking ``liabilities'' and inserting ``benefits''
in subparagraph (B),
(iii) by striking ``section 417(e)(3)(D)(i)) for such
month'' in subparagraph (F) and inserting ``section
417(e)(3)(D)(i) for such month)'', and
(iv) by striking ``subparagraph (B)'' in subparagraph (F)
and inserting ``subparagraph (C)''.
(F) Section 430(i) of the 1986 Code is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all benefits which are expected
to accrue or to be earned under the plan during the plan
year, determined using the additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related expenses expected to be
paid from plan assets during the plan year, over
``(ii) the amount of mandatory employee contributions
expected to be made during the plan year, plus'', and
(II) in subparagraph (B), by striking ``the target normal
cost (determined without regard to this paragraph) of the
plan for the plan year'' and inserting ``the amount
determined under subsection (b)(1)(A)(i) with respect to the
plan for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)'' in the last
sentence of paragraph (4)(B) and inserting ``subparagraph
(A)''.
(G) Section 430(j)(3) of the 1986 Code is amended--
(i) by adding at the end of subparagraph (A) the following
new sentence: ``In the case of plan years beginning in 2008,
the funding shortfall for the preceding plan year may be
determined using such methods of estimation as the Secretary
may provide.'',
(ii) by striking ``section 302(c)'' in subparagraph
(D)(ii)(II) and inserting ``section 412(c)'',
(iii) by adding at the end of subparagraph (E) the
following new clause:
``(iii) Plan with alternate valuation date.--The Secretary
shall prescribe regulations for the application of this
paragraph in the case of a plan which has a valuation date
other than the first day of the plan year.'', and
(iv) by striking ``and short years'' in the heading of
subparagraph (E) and inserting ``, short years, and years
with alternate valuation date''.
(H) Section 430(k) of the 1986 Code is amended--
(i) by inserting ``(as provided under paragraph (2))''
after ``applies'' in paragraph (1), and
(ii) by striking ``, except'' and all that follows in
paragraph (6)(B) and inserting a period.
(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
[[Page H1600]]
this subsection which are necessary to reflect the alternate
valuation date.''.
(H) Section 502(c)(4) of ERISA is amended by striking ``by
any person'' and all that follows through the period and
inserting ``by any person of subsection (j), (k), or (l) of
section 101 or section 514(e)(3).''.
(2) Amendments to 1986 code.--
(A) Section 436(b)(2) of the 1986 Code is amended--
(i) by striking ``section 303'' and inserting ``section
430'' in the matter preceding subparagraph (A), and
(ii) by striking ``a funding'' and inserting ``an adjusted
funding'' in subparagraph (B).
(B) Section 436(b)(3) of the 1986 Code is amended--
(i) by inserting ``benefit'' after ``event'' in the
heading, and
(ii) by striking ``any event'' in subparagraph (B) and
inserting ``an event''.
(C) Section 436(d)(5) of the 1986 Code is amended by adding
at the end the following new flush sentence:
``Such term shall not include the payment of a benefit which
under section 411(a)(11) may be immediately distributed
without the consent of the participant.''.
(D) Section 436(f) of the 1986 Code is amended--
(i) by inserting ``adjusted'' before ``funding'' in
paragraph (1)(D), and
(ii) by striking ``prefunding balance under section 430(f)
or funding standard carryover balance'' in paragraph (2) and
inserting ``prefunding balance or funding standard carryover
balance under section 430(f)''.
(E) Section 436(j)(3) of the 1986 Code is amended--
(i) in subparagraph (A)--
(I) by striking ``without regard to this paragraph and'',
(II) by striking ``section 430(f)(4)(A)'' and inserting
``section 430(f)(4)'', and
(III) by striking ``paragraph (1)'' and inserting
``paragraphs (1) and (2)'', and
(ii) in subparagraph (C)--
(I) by striking ``without regard to this paragraph'' and
inserting ``without regard to the reduction in the value of
assets under section 430(f)(4)'', and
(II) by inserting ``beginning'' before ``after'' each place
it appears.
(F) Section 436 of the 1986 Code is amended by
redesignating subsection (k) as subsection (m) and by
inserting after subsection (j) the following new subsections:
``(k) Secretarial Authority for Plans With Alternate
Valuation Date.--In the case of a plan which has designated a
valuation date other than the first day of the plan year, the
Secretary may prescribe rules for the application of this
section which are necessary to reflect the alternate
valuation date.
``(l) Single-Employer Plan.--For purposes of this section,
the term `single-employer plan' means a plan which is not a
multiemployer plan.''.
(3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and
113(b)(2)(A)(ii) of the 2006 Act are each amended--
(A) by striking ``subsection'' and inserting ``section'',
and
(B) by striking ``subparagraph'' and inserting
``paragraph''.
(d) Amendments Related to Sections 107 and 114.--
(1) Amendments to erisa.--
(A) Section 103(d) of ERISA is amended--
(i) in paragraph (3), by striking ``the normal costs, the
accrued liabilities'' and inserting ``the normal costs or
target normal costs, the accrued liabilities or funding
target'', and
(ii) by striking paragraph (7) and inserting the following
new paragraph:
``(7) A certification of the contribution necessary to
reduce the minimum required contribution determined under
section 303, or the accumulated funding deficiency determined
under section 304, to zero.''.
(B) Section 4071 of ERISA is amended by striking ``as
section 303(k)(4) or 307(e)'' and inserting ``or section
303(k)(4),''.
(2) Amendments to 1986 code.--
(A) Section 401(a)(29) of the 1986 Code is amended by
striking ``on plans in at-risk status'' in the heading.
(B) Section 401(a)(32)(C) of the 1986 Code is amended--
(i) by striking ``section 430(j)'' and inserting ``section
430(j)(3)'', and
(ii) by striking ``paragraph (5)(A)'' and inserting
``section 430(j)(4)(A)''.
(C) Section 401(a)(33) of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subparagraph
(B)(iii) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(b)(2) (without regard to
subparagraph (B) thereof)'' in subparagraph (D) and inserting
``section 412(b)(1), without regard to section 412(b)(2)''.
(D) Section 411 of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in subsection
(a)(3)(C) and inserting ``section 412(d)(2)'', and
(ii) by striking ``section 412(e)(2)'' in subsection
(d)(6)(A) and inserting ``section 412(d)(2)''.
(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended
to read as follows:
``(I) the sum of the funding target and target normal cost
determined under section 430, over''.
(F) Section 4971 of the 1986 Code is amended--
(i) by striking ``required minimum'' in subsection (b)(1)
and inserting ``minimum required'',
(ii) by inserting ``or unpaid minimum required
contribution, whichever is applicable'' after ``accumulated
funding deficiency'' each place it appears in subsections
(c)(3) and (d)(1), and
(iii) by striking ``section 412(a)(1)(A)'' in subsection
(e)(1) and inserting ``section 412(a)(2)''.
(3) Amendment to 2006 act.--Section 114 of the 2006 Act is
amended by adding at the end the following new subsection:
``(g) Effective Dates.--
``(1) In general.--The amendments made by this section
shall apply to plan years beginning after 2007.
``(2) Excise tax.--The amendments made by subsection (e)
shall apply to taxable years beginning after 2007, but only
with respect to plan years described in paragraph (1) which
end with or within any such taxable year.''.
(e) Amendment Related to Section 116.--Section
409A(b)(3)(A)(ii) of the 1986 Code is amended by inserting
``to an applicable covered employee'' after ``under the
plan''.
SEC. 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 302(b)(3) of ERISA is amended by striking ``the
plan adopts'' and inserting ``the plan sponsor adopts''.
(B) Section 305(b)(3)(C) of ERISA is amended by striking
``section 101(b)(4)'' and inserting ``section 101(b)(1)''.
(C) Section 305(b)(3)(D) of ERISA is amended by striking
``The Secretary'' in clause (iii) and inserting ``The
Secretary of the Treasury, in consultation with the
Secretary''.
(D) Section 305(c)(7) of ERISA is amended--
(i) by striking ``to agree on'' and all that follows in
subparagraph (A)(ii) and inserting ``to adopt a contribution
schedule with terms consistent with the funding improvement
plan and a schedule from the plan sponsor,'', and
(ii) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.'', and
(iii) by adding at the end the following new subparagraph:
``(C) Failure to make scheduled contributions.--Any failure
to make a contribution under a schedule of contribution rates
provided under this paragraph shall be treated as a
delinquent contribution under section 515 and shall be
enforceable as such.''.
(E) Section 305(e) of ERISA is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in clause
(i)(II) and inserting ``to adopt a contribution schedule with
terms consistent with the rehabilitation plan and a schedule
from the plan sponsor under paragraph (1)(B)(i),'',
(II) by striking clause (ii) and inserting the following
new clause:
``(ii) Date of implementation.--The date specified in this
clause is the date which is 180 days after the date on which
the collective bargaining agreement described in clause (i)
expires.'', and
(III) by adding at the end the following new clause:
``(iii) Failure to make scheduled contributions.--Any
failure to make a contribution under a schedule of
contribution rates provided under this subsection shall be
treated as a delinquent contribution under section 515 and
shall be enforceable as such.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph (A)(ii),
and
(II) by striking ``and taking'' in subparagraph (B) and
inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and inserting ``the
last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)(C)(iii)--
(I) by striking ``the Secretary'' in subclause (I) and
inserting ``the Secretary of the Treasury, in consultation
with the Secretary'', and
(II) by striking ``Secretary'' in the last sentence and
inserting ``Secretary of the Treasury'', and
(v) by striking ``an employer's withdrawal liability'' in
paragraph (9)(B) and inserting ``the allocation of unfunded
vested benefits to an employer''.
(F) Section 305(f)(2)(A)(i) of ERISA is amended by adding
at the end the following: ``to a participant or beneficiary
whose annuity starting date (as defined in section 205(h)(2))
occurs after the date such notice is sent,''.
(G) Section 305(g) of ERISA is amended by inserting ``under
subsection (c)'' after ``funding improvement plan'' the first
place it appears.
(H) Section 502(c)(2) of ERISA is amended by striking
``101(b)(4)'' and inserting ``101(b)(1)''.
(I) Section 502(c)(8)(A) of ERISA is amended by inserting
``plan'' after ``multiemployer''.
(2) Amendments to 1986 code.--
[[Page H1601]]
(A) Section 432(b)(3)(C) of the 1986 Code is amended by
striking ``section 101(b)(4)'' and inserting ``section
101(b)(1)''.
(B) Section 432(b)(3)(D)(iii) of the 1986 Code is amended
by striking ``The Secretary of Labor'' and inserting ``The
Secretary, in consultation with the Secretary of Labor''.
(C) Section 432(c) of the 1986 Code is amended--
(i) in paragraph (3), by striking ``section 304(d)'' in
subparagraph (A)(ii) and inserting ``section 431(d)'', and
(ii) in paragraph (7)--
(I) by striking ``to agree on'' and all that follows in
subparagraph (A)(ii) and inserting ``to adopt a contribution
schedule with terms consistent with the funding improvement
plan and a schedule from the plan sponsor,'', and
(II) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Date of implementation.--The date specified in this
subparagraph is the date which is 180 days after the date on
which the collective bargaining agreement described in
subparagraph (A) expires.''.
(D) Section 432(e) of the 1986 Code is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows ``to adopt a'' in clause
(i)(II) and inserting ``to adopt a contribution schedule with
terms consistent with the rehabilitation plan and a schedule
from the plan sponsor under paragraph (1)(B)(i),'', and
(II) by striking clause (ii) and inserting the following
new clause:
``(ii) Date of implementation.--The date specified in this
clause is the date which is 180 days after the date on which
the collective bargaining agreement described in clause (i)
expires.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in subparagraph (A)(ii),
and
(II) by striking ``and taking'' in subparagraph (B) and
inserting ``but taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph (1)(B)(i)'' and inserting ``the
last sentence of paragraph (1)'', and
(II) by striking ``established'' and inserting
``establish'',
(iv) in paragraph (8)--
(I) by striking ``section 204(g)'' in subparagraph (A)(i)
and inserting ``section 411(d)(6)'',
(II) by inserting ``of the Employee Retirement Income
Security Act of 1974'' after ``4212(a)'' in subparagraph
(C)(i)(II),
(III) by striking ``the Secretary of Labor'' in
subparagraph (C)(iii)(I) and inserting ``the Secretary, in
consultation with the Secretary of Labor'', and
(IV) by striking ``the Secretary of Labor'' in the last
sentence of subparagraph (C)(iii) and inserting ``the
Secretary'', and
(v) by striking ``an employer's withdrawal liability'' in
paragraph (9)(B) and inserting ``the allocation of unfunded
vested benefits to an employer''.
(E) Section 432(f)(2)(A)(i) of the 1986 Code is amended--
(i) by striking ``section 411(b)(1)(A)'' and inserting
``section 411(a)(9)''; and
(ii) by inserting at the end the following: ``to a
participant or beneficiary whose annuity starting date (as
defined in section 417(f)(2)) occurs after the date such
notice is sent,''.
(F) Section 432(g) of the 1986 Code is amended by inserting
``under subsection (c)'' after ``funding improvement plan''
the first place it appears.
(G) Section 432(i) of the 1986 Code is amended--
(i) by striking ``section 412(a)'' in paragraph (3) and
inserting ``section 431(a)'', and
(ii) by striking paragraph (9) and inserting the following
new paragraph:
``(9) Plan sponsor.--For purposes of this section, section
431, and section 4971(g)--
``(A) In general.--The term `plan sponsor' means, with
respect to any multiemployer plan, the association,
committee, joint board of trustees, or other similar group of
representatives of the parties who establish or maintain the
plan.
``(B) Special rule for section 404(c) plans.--In the case
of a plan described in section 404(c) (or a continuation of
such plan), such term means the bargaining parties described
in paragraph (1).''.
(H) Section 412(b)(3) of the 1986 Code is amended by
striking ``the plan adopts'' and inserting ``the plan sponsor
adopts''.
(I) Section 4971(g)(4) of the 1986 Code is amended--
(i) in subparagraph (B)(ii), by striking ``first day of''
and inserting ``day following the close of'', and
(ii) by striking clause (ii) of subparagraph (C) and
inserting the following new clause:
``(ii) Plan sponsor.--For purposes of clause (i), the term
`plan sponsor' has the meaning given such term by section
432(i)(9).''.
(3) Amendments to 2006 act.--
(A) Section 212(b)(2) of the 2006 Act is amended by
striking ``Section 4971(c)(2) of such Code'' and inserting
``Section 4971(e)(2) of such Code''.
(B) Section 212(e)(1) of the 2006 Act is amended by
inserting ``, except that the amendments made by subsection
(b) shall apply to taxable years beginning after 2007, but
only with respect to plan years beginning after 2007 which
end with or within any such taxable year'' before the period
at the end.
(C) Section 212(e)(2) of the 2006 Act is amended by
striking ``section 305(b)(3) of the Employee Retirement
Income Security Act of 1974'' and inserting ``section
432(b)(3) of the Internal Revenue Code of 1986''.
SEC. 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)(i) Section 415(b)(2)(E)(v) of the 1986 Code is amended
to read as follows:
``(v) For purposes of adjusting any benefit or limitation
under subparagraph (B), (C), or (D), the mortality table used
shall be the applicable mortality table (within the meaning
of section 417(e)(3)(B)).''.
(ii)(I) Except as provided in subclause (II), the amendment
made by clause (i) shall apply to years beginning after
December 31, 2008.
(II) A plan sponsor may elect to have the amendment made by
clause (i) apply to any year beginning after December 31,
2007, and before January 1, 2009, or to any portion of any
such year.
SEC. 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)--
[[Page H1602]]
(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 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.
(a) Amendments to ERISA.--
(1) Section 203(f)(1)(B) of ERISA is amended to read as
follows:
``(B) the requirements of section 204(c) or 205(g), or the
requirements of subsection (e), with respect to accrued
benefits derived from employer contributions,''.
(2) Section 204(b)(5) of ERISA is amended--
(A) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is
amended to read as follows:
``(II) Preservation of capital.--An applicable defined
benefit plan shall be treated as failing to meet the
requirements of paragraph (1)(H) unless the plan provides
that an interest credit (or equivalent amount) of less than
zero shall in no event result in the account balance or
similar amount being less than the aggregate amount of
contributions credited to the account.''.
(b) Amendments to 1986 Code.--
(1) Section 411(b)(5) of the 1986 Code is amended--
(A) by striking ``clause'' in subparagraph (A)(iii) and
inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable'' in
subparagraph (C).
(2) Section 411(a)(13)(A) of the 1986 Code is amended--
(A) by striking ``paragraph (2)'' in clause (i) and
inserting ``subparagraph (B)'',
(B) by striking clause (ii) and inserting the following new
clause:
``(ii) the requirements of subsection (a)(11) or (c), or
the requirements of section 417(e), with respect to accrued
benefits derived from employer contributions,'', and
(C) by striking ``paragraph (3)'' in the matter following
clause (ii) and inserting ``subparagraph (C)''.
(3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986
Code is amended to read as follows:
``(II) Preservation of capital.--An applicable defined
benefit plan shall be treated as failing to meet the
requirements of paragraph (1)(H) unless the plan provides
that an interest credit (or equivalent amount) of less than
zero shall in no event result in the account balance or
similar amount being less than the aggregate amount of
contributions credited to the account.''.
(c) Amendments to 2006 Act.--
(1) Section 701(d)(2) of the 2006 Act is amended by
striking ``204(g)'' and inserting ``205(g)''.
(2) Section 701(e) of the 2006 Act is amended--
(A) by inserting ``on or'' after ``period'' in paragraph
(3),
(B) in paragraph (4)--
(i) by inserting ``the earlier of'' after ``before'' in the
matter preceding subparagraph (A), and
(ii) by striking ``earlier'' and inserting ``later'' in
subparagraph (A),
(C) by inserting ``on or'' before ``after'' each place it
appears in paragraph (5), and
(D) by adding at the end the following new paragraph:
``(6) Special rule for vesting requirements.--The
requirements of section 203(f)(2) of the Employee Retirement
Income Security Act of 1974 and section 411(a)(13)(B) of the
Internal Revenue Code of 1986 (as added by this Act)--
``(A) shall not apply to a participant who does not have an
hour of service after the effective date of such requirements
(as otherwise determined under this subsection); and
``(B) in the case of a plan other than a plan described in
paragraph (3) or (4), shall apply to plan years ending on or
after June 29, 2005.''.
(d) Amendment of ADEA.--Section 4(i)(10)(B)(i)(III) of the
Age Discrimination in Employment Act of 1967 (29 U.S.C.
623(i)(10)(B)(i)(III)) is amended by adding at the end the
following: ``In the case of a governmental plan (as defined
in the first sentence of section 414(d) of the Internal
Revenue Code of 1986), a rate of return or a method of
crediting interest established pursuant to any provision of
Federal, State, or local law (including any administrative
rule or policy adopted in accordance with any such law) shall
be treated as a market rate of return for purposes of
subclause (I) and a permissible method of crediting interest
for purposes of meeting the requirements of subclause (I),
except that this sentence shall only apply to a rate of
return or method of crediting interest if such rate or method
does not violate any other requirement of this Act.''.
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 802.--Section
404(a)(1)(D)(i) of the 1986 Code is amended by striking
``431(c)(6)(C)'' and inserting ``431(c)(6)(D)''.
(c) Amendment Related to Section 803.--Clause (iii) of
section 404(a)(7)(C) of the 1986 Code is amended to read as
follows:
``(iii) Limitation.--In the case of employer contributions
to 1 or more defined contribution plans--
``(I) if such contributions do not exceed 6 percent of the
compensation otherwise paid or accrued during the taxable
year to the beneficiaries under such plans, this paragraph
shall not apply to such contributions or to employer
contributions to the defined benefit plans to which this
paragraph would otherwise apply by reason of contributions to
the defined contribution plans, and
``(II) if such contributions exceed 6 percent of such
compensation, this paragraph shall be applied by only taking
into account such contributions to the extent of such excess.
For purposes of this clause, amounts carried over from
preceding taxable years under subparagraph (B) shall be
treated as employer
[[Page H1603]]
contributions to 1 or more defined contributions plans to the
extent attributable to employer contributions to such plans
in such preceding taxable years.''.
(d) Amendments Related to Section 824.--
(1) Section 408A(c)(3)(B) of the 1986 Code, as in effect
after the amendments made by section 824(b)(1) of the 2006
Act, is amended--
(A) by striking the second ``an'' before ``eligible'',
(B) by striking ``other than a Roth IRA'', and
(C) by adding at the end the following new flush sentence:
``This subparagraph shall not apply to a qualified rollover
contribution from a Roth IRA or to a qualified rollover
contribution from a designated Roth account which is a
rollover contribution described in section 402A(c)(3)(A).''
(2) Section 408A(d)(3)(B), as in effect after the
amendments made by section 824(b)(2)(B) of the 2006 Act, is
amended by striking ``(other than a Roth IRA)'' and by
inserting at the end the following new sentence: ``This
paragraph shall not apply to a distribution which is a
qualified rollover contribution from a Roth IRA or a
qualified rollover contribution from a designated Roth
account which is a rollover contribution described in section
402A(c)(3)(A)''.
(e) Amendment to Section 827.--The first sentence of
section 72(t)(2)(G)(iv) of the 1986 Code is amended by
inserting ``on or'' before ``before''.
(f) Amendments Related to Section 829.--
(1) Section 402(c)(11) of the 1986 Code is amended--
(A) by inserting ``described in paragraph (8)(B)(iii)''
after ``eligible retirement plan'' in subparagraph (A), and
(B) by striking ``trust'' before ``designated beneficiary''
in subparagraph (B).
(2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``Such term
shall include any distribution to a designated beneficiary
which would be treated as an eligible rollover distribution
by reason of subsection (c)(11), or section 403(a)(4)(B),
403(b)(8)(B), or 457(e)(16)(B), if the requirements of
subsection (c)(11) were satisfied.''
(B) Clause (i) of section 402(c)(11)(A) of the 1986 Code is
amended by striking ``for purposes of this subsection''.
(C) The amendments made by this paragraph shall apply with
respect to plan years beginning after December 31, 2008.
(g) Amendment Related to Section 832.--Section 415(f) of
the 1986 Code is amended by striking paragraph (2) and by
redesignating paragraph (3) as paragraph (2).
(h) Amendments Related to Section 833.--
(1) Section 408A(c)(3)(C) of the 1986 Code, as added by
section 833(c) of the 2006 Act, is redesignated as
subparagraph (E).
(2) In the case of taxable years beginning after December
31, 2009, section 408A(c)(3)(E) of the 1986 Code (as
redesignated by paragraph (1))--
(A) is redesignated as subparagraph (D), and
(B) is amended by striking ``subparagraph (C)(ii)'' and
inserting ``subparagraph (B)(ii)''.
(i) Amendments Related to Section 841.--
(1) Section 420(c)(1)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``In the case
of a qualified future transfer or collectively bargained
transfer to which subsection (f) applies, any assets so
transferred may also be used to pay liabilities described in
subsection (f)(2)(C).''
(2) Section 420(f)(2) of the 1986 Code is amended by
striking ``such'' before ``the applicable'' in subparagraph
(D)(i)(I).
(3) Section 4980(c)(2)(B) of the 1986 Code is amended by
striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) any transfer described in section
420(f)(2)(B)(ii)(II).''.
(j) Amendments Related to Section 845.--
(1) Subsection (l) of section 402 of the 1986 Code is
amended--
(A) in paragraph (1)--
(i) by inserting ``maintained by the employer described in
paragraph (4)(B)'' after ``an eligible retirement plan'', and
(ii) by striking ``of the employee, his spouse, or
dependents (as defined in section 152)'' ,
(B) in paragraph (4)(D), by--
(i) inserting ``(as defined in section 152)'' after
``dependents'', and
(ii) striking ``health insurance plan'' and inserting
``health plan'', and
(C) in paragraph (5)(A), by striking ``health insurance
plan'' and inserting ``health plan''.
(2) Subparagraph (B) of section 402(l)(3) of the 1986 Code
is amended by striking ``all amounts distributed from all
eligible retirement plans were treated as 1 contract for
purposes of determining the inclusion of such distribution
under section 72'' and inserting ``all amounts to the credit
of the eligible public safety officer in all eligible
retirement plans maintained by the employer described in
paragraph (4)(B) were distributed during such taxable year
and all such plans were treated as 1 contract for purposes of
determining under section 72 the aggregate amount which would
have been so includible''.
(k) Amendments Related to Section 854.--
(1) Section 3121(b)(5)(E) of the 1986 Code is amended by
striking ``or special trial judge''.
(2) Section 210(a)(5)(E) of the Social Security Act is
amended by striking ``or special trial judge''.
(l) Amendments Related to Section 856.--Section 856 of the
2006 Act, and the amendments made by such section, are hereby
repealed, and the Internal Revenue Code of 1986 shall be
applied and administered as if such sections and amendments
had not been enacted.
(m) Amendment Related to Section 864.--Section 864(a) of
the 2006 Act is amended by striking ``Reconciliation''.
SEC. 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.
[[Page H1604]]
``(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. 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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
North Dakota (Mr. Pomeroy) and the gentleman from Wisconsin (Mr. Ryan)
each will control 20 minutes.
The Chair recognizes the gentleman from North Dakota.
Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today I rise in favor of moving the Pension Technical
Corrections Act of 2008 forward in an expedited manner. The bill is
most needed by employers who are committed to providing their employees
with a financially secure retirement through a defined benefit plan.
Why do we need this bill? Why do we need to act this quickly? Let me
just break it down for you.
On August 17, 2006, the President signed into law the Pension
Protection Act. This bill imposed sweeping reform affecting how
employers fund their defined benefits plans maintained for their
employees. In addition, the bill imposed significant reforms for
pension plans offered to many union workers who participated in multi-
employer plans.
However, many provisions in the PPA became effective on January 1 of
this year. The Treasury Department and the Internal Revenue Service
cannot implement many of these provisions because they need further
clarification of congressional intent. This bill provides the needed
clarification for the Treasury Department, Internal Revenue Service,
corporations and other businesses who sponsor retirement plans, as well
as working families who contribute to and benefit from 401(k) plans or
defined contribution plans.
For the employers who have weathered the storm and are persistently
committed to providing a secured retirement for their workers, this
bill is for you. For the beneficiary of a 401(k) plan who wants to keep
money in a retirement plan savings vehicle to finance retirement rather
than being forced to spend it currently, this bill is for you. This
bill provides clarification for the correct application of the non-
spousal rollover provision.
For the construction worker whose plan may be experiencing
underfunding and could be subject to a benefit reduction, this bill
will make it clear when the plan must provide you with the notice
alerting you of the plan's funding status. It would also clarify
whether you are subject to such a reduction in pension benefits.
You see, Mr. Speaker, we are talking about quality-of-life issues for
working families and about helping those employers who want to help
their employees provide for a financially secure retirement.
I encourage my colleagues in this body and in the Senate to keep this
bill clean and move it quickly. I encourage them to join me in doing
what we were sent here by our constituents to do, provide legislation
to help improve their lives. Let's pass this bill and get it to the
President before the end of the month, because people are waiting. We
have kept them waiting long enough.
Mr. Speaker, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 3361, the Pension Protection
Technical Corrections Act. Given the complexity and broad reach of the
Tax Code and ERISA, and the difficult interactions between them, the
measure before us is necessary to correct drafting and other errors in
the Pension Protection Act of 2006.
Passage of the legislation will give certainty to plan
administrators, individuals, as well as government regulators and
ensure the intent of Congress is fully reflected in the governing
statutes.
The technical corrections process is a complicated one which ensures
all views are heard and which brings in experts from the relevant
committees and Federal agencies.
In this case, it means that bipartisan staff from both the Ways &
Means Committee and the Education & Labor Committee were joined by
their counterparts from the Senate Finance Committee and the Senate
HELP Committee as well as representatives from the Treasury and Labor
Departments and the Pension Benefit Guaranty Corporation.
Led by the staff of the Joint Tax Committee, the technical
corrections process gives all participants a chance to review proposed
changes to ensure they reflect the intent of Congress and do not change
the substance of the law itself.
There can be disagreements about what should and should not be
considered technical. Each participant in the process has a veto. Thus,
only items that were unanimously viewed as correcting a drafting
mistake are included in the measure being debated today.
There is one item, called smoothing, that we viewed as a particularly
important technical correction but is not included in this bill because
one of the parties to the process said it was not technical. Regardless
of whether smoothing is technical, it is extremely important and must
be passed quickly. Given that smoothing was excluded from this bill, I
urge that we take up a smoothing-only bill on suspension this week.
It is my understanding that the Joint Tax Committee will be
publishing on their web page a complete summary of these items, and I
encourage interested individuals to review it.
Two final observations, Mr. Speaker, on the differences between this
bill and the version passed by the Senate in December.
First, since the Senate bill was passed, several additional technical
items were identified, reviewed by the participants, and agreed to as
being technical and conforming changes.
Second, the Senate-passed bill included smoothing and a second
provision that is no longer relevant.
I hope that the Senate takes up the bill that we are passing today so
that it can go to the President and be signed into law. I also hope
that both houses quickly pass a smoothing-only bill.
Mr. Speaker, while hardly glamorous, the technical corrections
process is an important one, providing clarity and certainty to plan
administrators and the millions of Americans who rely on these plans to
help provide a secure retirement.
I support passage of the bill.
Mr. Speaker, I yield back the balance of my time.
Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume.
As we have just made formally a matter of record, the Pension
Protection Act was an imperfect piece of legislation. This technically
corrects, not substantively changes, but technically corrects an
imperfect bill. It should go forward.
[[Page H1605]]
We should be doing more, Mr. Speaker, and this is where I want to
spend the balance of my time tonight. I am almost shaking with anger at
what we are not doing to correct the Pension Protection Act before it
will have a very negative impact on the very working people that we
talk so much about trying to help. I will give you a couple of
examples.
There is a provision in the bill, never discussed, that inadvertently
changes funding requirements for public pension plans. A plan like the
State of North Dakota offers for its employees has a rate of 7.5
percent. Well, the Pension Protection Act in its present form requires
them to credit interest at no greater than market rate. Without
correction, we are going to have State legislatures reducing the
interest credited for their public employees under fully funded public
plans. It makes no sense. It needs fixing. It is a mistake. But we
can't get the critical people in the critical committees to agree to
fixing this.
Let's make no mistake about who we are talking about. We are talking
about the Education and Labor Committee and we are talking about the
Ways and Means Committee. Those are the committees of jurisdiction. We
have not been able to get critical an agreement between the leadership
of those committees and ranking members on fixing this public
provision. And, as a result, for no reason whatsoever, other than an
act of Congress that wasn't meant to have this impact, people may have
their pensions reduced by Federal requirement.
I want those workers to know, Congress didn't mean to do this. But
Congress knows that that is the effect of the law we passed, and this
is a Congress that can't fix it in a timely fashion because we haven't
had the will, we haven't had the time to think about it. We don't care
enough. Because of the inattention of this body, if workers are forced
to take lower credited interest in these public plans, these workers
get less of a pension, and for no reason whatsoever.
There is another provision we should be fixing. These provisions are
a little more than technical, so maybe should have been another bill,
maybe not under the technical corrections act, but a bill we could have
brought like tonight under the suspension calendar, a bill to address
funding in a reasonable way.
You know, a pension is paid over many, many years. Yet the funding
balance is determined by things that capture where the stock market is
today, what the interest rate is today. Now, that can give you a pretty
dire picture if you have got a stock market that is tanking and a low
interest rate environment. It may look suddenly like forevermore the
plan isn't going to earn much money on its assets.
Now, we know that the interest rate is going to change and we know
the stock market valuation is going to change. So if you project 30
years based on today's picture, you are going to be coming up with a
wrong number. There is something called asset smoothing that lets you
basically average a bit so that a bad picture today doesn't mean a
draconian funding requirement upon the employer to meet what looks like
a funding requirement that is not in fact reality.
{time} 2045
Now, some might think, well, gosh, if the employer has to put in more
money than is really needed that just is a good thing for workers
because that means there will be a lot of money in there, and in no way
will that solve it. There is a hitch to this. Employers do not have to
fund pension plans. Employers can freeze pension plans. They can get
out of the pension business. In fact, my friends, 43 pensions have
frozen since we passed the Pension Protection Act.
=========================== NOTE ===========================
March 12, 2008--On Page H1605 the following appeared: 99
pensions have
The online version should be corrected to read: 43 pensions have
========================= END NOTE =========================
Here in a recession, where we have got businesses struggling, they
are going to have to pony up on their pensions beyond what they ever
have before because in the pension protection act we have got much
stiffer funding requirements. Smoothing, which many of us intended to
be in this bill, is not in the bill, and we need to add it to the bill.
But this Congress, failing to act, is going to leave employers to pay
the full bill, no smoothing help. I truly believe, just as I stand
here, that there will be plans deciding to freeze, workers losing their
pensions because in this time, before we go out on break, we don't
address smoothing.
Mr. RYAN of Wisconsin. Will the gentleman yield for a minute?
Mr. POMEROY. I will yield for a minute.
Mr. RYAN of Wisconsin. Just to be clear, it's my understanding that
the minority side agrees with fixing the public pension problem along
with the smoothing problem and consented to putting both of those in
the bill, but the majority had rejected that offer.
Mr. POMEROY. Reclaiming my time, I am not putting this responsibility
on the minority.
What the gentleman has alleged, I am not currently informed of. I
don't dispute it, but I don't know it, but I do know that others that
were needed to address this issue, others on the majority side did not
act.
In the end, the majority has responsibility for what we bring in a
suspension calendar like this. This majority didn't get the job done.
Mr. RYAN of Wisconsin. If the gentleman would further yield, I would
simply like to say that we in the minority are more than willing to
work with the gentleman in the majority to include the smoothing in the
public pension provision.
Mr. POMEROY. Reclaiming my time, I welcome that, because when the
Pension Protection Act passed in the last Congress when the minority
was the majority, I did not find that willingness to work with me. The
legislation, I believe, needed correcting. This is a pox on both
parties.
Mr. RYAN of Wisconsin. Just one more friendly view. If you recall,
this was a bipartisan bill when this passed when we were in the
majority.
Mr. POMEROY. Reclaiming my time before I run out of time, this is a
pox on both parties. Both parties passed it, and both parties have
failed to fix it.
I believe the failure, relative to getting this fixed, is on both
parties. But the majority party carries a disproportionate burden
because we are the majority party.
I could not be more disappointed.
Getting back to the point I was making about frozen plans, I believe
plans will freeze and workers will lose their pensions because asset
smoothing is not addressed on the suspension calendar before we go out,
before this critical April 15 deadline for pension funding.
This is completely unacceptable. It's incompetent, and I am ashamed
of this House in failing to address this before we leave. I hope that I
have made some people angry by these comments. I have intended to.
We need to get after this, and we need to get after it when we are
back. If we don't get after it, I assure you, I will be having more of
these speeches, because those who pretend to protect the world, the
world's workers, when what they are doing is protecting these workers
out of their very pensions, the very thing they need for retirement,
income security. They are not doing anybody any favors. The games have
got to end. The posture has got to end. We have got to fix problems and
fix them in a timely way and shame on us if we have fallen short.
Let me get back to the bill before us, because it's important. The
bill before us is a technical corrections act. This one needs to pass.
This is fine.
The problem is, there is so much more that needed to be done, that
could have been done on a suspension calendar tonight and tomorrow. We
didn't do it, and we need to do it in short order when we get back.
Mr. McKEON. Mr. Speaker, I rise in support of H.R. 3361, the Pension
Protection Technical Corrections Act of 2008, and I urge all of my
colleagues to support this measure.
Mr. Speaker, in 2006, the Republican-led Congress passed, and
President Bush signed into law, the Pension Protection Act of 2006,
which represented the most comprehensive reform of our Nation's private
pension system in a generation. After years of thorough examination,
thoughtful legislative development, and careful coalition-building, we
finally restored common sense to our Nation's pension system through
enactment of this landmark law. Thanks to those reforms, today's
retirement security laws match the new realities of the 21st century
economy, meaning that more U.S. workers will be able to count on their
retirement savings being there for them when they need it.
The Pension Protection Act included tough new funding requirements to
ensure employers adequately and consistently fund their
[[Page H1606]]
pension plans, provided workers with meaningful disclosure about the
financial status of their benefits, and protected taxpayers from a
possible multi-billion dollar bailout of the Pension Benefit Guaranty
Corporation (PBGC).
The Pension Protection Act's reforms were built on six fundamental
principles that helped ensure a stronger, more secure retirement for
millions of American workers. Those principles were: certainty, with a
permanent and more accurate calculation of employers' pension
liabilities; common sense, which enabled employers to build up a
cushion in their pension plans during good economic times; stability,
achieved by closing funding loopholes and ensuring employers make
adequate and consistent cash payments to their plans; transparency
through timely and straightforward information given to employees about
the health of their retirement plans; honesty from employers and union
leaders, who are no longer permitted to make hollow promises of extra
benefits that will never materialize because a plan is severely
underfunded; and portability, established by ensuring that hybrid
plans, such as cash balance pensions--which offer portable, more
generous worker benefits--remain a viable part of the defined benefit
system. Having served as the Chairman of the House Committee on
Education and the Workforce during this process, I am pleased to have
been part of this effort.
Of course, it is to be expected that in legislation of that
magnitude, we did not get every word perfect, or every provision as
clear as it could be. That is the point of the bill before us today--
H.R. 3361 is a narrow, technical bill that corrects inadvertent errors
in drafting contained in the original law, and provides necessary
clarification and focus, to ensure that the law is administered as
Congress intended. For that reason, I support the bill before us today,
and hope that it will quickly be enacted into law.
I must note for the record, however, that more remains to be done.
The bill before us is very narrow in scope, and addresses only those
issues that are considered purely technical on a consensus basis. There
are other issues that remain to be addressed.
For example, late last year, the Senate passed by unanimous consent
its own version of a technical corrections bill, which included
critical clarifications with respect to the issue of asset smoothing. I
would hope that this issue is addressed in any final technical
correction package that we consider.
Also, there are numerous provisions which Members and staff have
discussed since enactment of the 2006 law, which enjoy broad,
bipartisan support, but which did not fall within the scope of this
narrow package of technical corrections. Going forward, it will be
necessary for us to address these items, and I stand ready to work with
my Chairman, Mr. Miller, and the distinguished Chairman and Ranking
Member of the Ways and Means Committee in doing so.
Mr. Speaker, with that, I reiterate my support for this narrow
legislation.
Mr. POMEROY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from North Dakota (Mr. Pomeroy) that the House suspend the
rules and pass the bill, H.R. 3361, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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