[Congressional Record (Bound Edition), Volume 153 (2007), Part 27]
[Senate]
[Pages 36419-36426]
[From the U.S. 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 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.

[[Page 36420]]

       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:

                                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--
       ``(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),

[[Page 36421]]

       (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--
       (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

[[Page 36422]]

       (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:
       ``(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.--

[[Page 36423]]

       (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 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).

[[Page 36424]]

       (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 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''.

[[Page 36425]]



     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 36426]]

       ``(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.

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