[Congressional Record (Bound Edition), Volume 154 (2008), Part 10]
[House]
[Pages 14433-14442]
[From the U.S. 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. 6382) to make technical corrections related to the Pension 
Protection Act of 2006, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6382

       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.

TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF 
                                  2006

     SEC. 101. 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),
       (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

[[Page 14434]]

     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
       (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. 102. 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

[[Page 14435]]

     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.--
       (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. 103. 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. 104. 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).

[[Page 14436]]

       (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. 105. 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. 106. 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. 107. 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.--

[[Page 14437]]

       (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.''.

     SEC. 108. 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 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. 109. 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,

[[Page 14438]]

       (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. 110. 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)(A) 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:
       ``(i) 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.
       ``(ii) The spouse or former spouse attains age 62.
       ``(iii) The employee attains age 62 (or if deceased, would 
     have attained age 62).
       ``(B) 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.
       ``(C) 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. 111. 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. 112. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title shall take effect as if included in the 
     provisions of the 2006 Act to which the amendments relate.

                       TITLE II--OTHER PROVISIONS

     SEC. 201. AMENDMENTS RELATED TO SECTIONS 102 AND 112 OF THE 
                   PENSION PROTECTION ACT OF 2006.

       (a) 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.''.
       (b) 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.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     2006 Act to which the amendments relate.

     SEC. 202. MODIFICATION OF INTEREST RATE ASSUMPTION REQUIRED 
                   WITH RESPECT TO CERTAIN SMALL EMPLOYER PLANS.

       (a) In General.--Subparagraph (E) of section 415(b)(2) of 
     the 1986 Code (relating to limitation on certain assumptions) 
     is amended by adding at the end the following new clause:
       ``(vi) In the case of a plan maintained by an eligible 
     employer (as defined in section 408(p)(2)(C)(i)), clause (ii) 
     shall be applied without regard to subclause (II) thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2007.

     SEC. 203. DETERMINATION OF MARKET RATE OF RETURN FOR 
                   GOVERNMENTAL PLANS.

       (a) 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.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provisions of the 
     Pension Protection Act of 2006 to which such amendment 
     relates.

     SEC. 204. TREATMENT OF CERTAIN REIMBURSEMENTS FROM 
                   GOVERNMENTAL PLANS FOR MEDICAL CARE.

       (a) In General.--Section 105 of the 1986 Code (relating to 
     amounts received under accident and health plans) is amended 
     by adding at the end the following new subsection:
       ``(j) Special Rule for Certain Governmental Plans.--
       ``(1) In general.--For purposes of subsection (b), amounts 
     paid (directly or indirectly) to the taxpayer from an 
     accident or health plan described in paragraph (2) shall not 
     fail to be excluded from gross income solely because such 
     plan, on or before January 1, 2008, provides for 
     reimbursements of health care expenses of a deceased plan 
     participant's beneficiary.
       ``(2) Plan described.--An accident or health plan is 
     described in this paragraph if such plan is funded by a 
     medical trust that is established in connection with a public 
     retirement system and that--
       ``(A) has been authorized by a State legislature, or
       ``(B) has received a favorable ruling from the Internal 
     Revenue Service that the trust's

[[Page 14439]]

     income is not includible in gross income under section 
     115.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to payments before, on, or after the date of the 
     enactment of this Act.

     SEC. 205. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 
                   BANKRUPTCY TO ROTH IRAS.

       (a) General Rule.--If a qualified airline employee receives 
     any airline payment amount and transfers any portion of such 
     amount to a Roth IRA within 180 days of receipt of such 
     amount (or, if later, within 180 days of the date of the 
     enactment of this Act), then such amount (to the extent so 
     transferred) shall be treated as a qualified rollover 
     contribution described in section 408A(e) of the Internal 
     Revenue Code of 1986, and the limitations described in 
     section 408A(c)(3) of such Code shall not apply to any such 
     transfer.
       (b) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Airline payment amount.--
       (A) In general.--The term ``airline payment amount'' means 
     any payment of any money or other property which is payable 
     by a commercial passenger airline carrier to a qualified 
     airline employee--
       (i) under the approval of an order of a Federal bankruptcy 
     court in a case filed after September 11, 2001, and before 
     January 1, 2007, and
       (ii) in respect of the qualified airline employee's 
     interest in a bankruptcy claim against the carrier, any note 
     of the carrier (or amount paid in lieu of a note being 
     issued), or any other fixed obligation of the carrier to pay 
     a lump sum amount.

     The amount of such payment shall be determined without regard 
     to any requirement to deduct and withhold tax from such 
     payment under sections 3102(a) and 3402(a).
       (B) Exception.--An airline payment amount shall not include 
     any amount payable on the basis of the carrier's future 
     earnings or profits.
       (2) Qualified airline employee.--The term ``qualified 
     airline employee'' means an employee or former employee of a 
     commercial passenger airline carrier who was a participant in 
     a defined benefit plan maintained by the carrier which--
       (A) is 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
       (B) was terminated or became subject to the restrictions 
     contained in paragraphs (2) and (3) of section 402(b) of the 
     Pension Protection Act of 2006.
       (3) Reporting requirements.--If a commercial passenger 
     airline carrier pays 1 or more airline payment amounts, the 
     carrier shall, within 90 days of such payment (or, if later, 
     within 90 days of the date of the enactment of this Act), 
     report--
       (A) to the Secretary of the Treasury, the names of the 
     qualified airline employees to whom such amounts were paid, 
     and
       (B) to the Secretary and to such employees, the years and 
     the amounts of the payments.

     Such reports shall be in such form, and contain such 
     additional information, as the Secretary may prescribe.
       (c) Effective Date.--This section shall apply to transfers 
     made after the date of the enactment of this Act with respect 
     to airline payment amounts paid before, on, or after such 
     date.

     SEC. 206. MODIFICATION OF PENALTY FOR FAILURE TO FILE 
                   PARTNERSHIP RETURNS.

       Section 6698 of the 1986 Code is amended by adding at the 
     end the following new subsection:
       ``(e) Modifications.--In the case of any return required to 
     be filed after December 31, 2008, the dollar amount in effect 
     under subsection (b)(1) shall be increased by $4.''.

     SEC. 207. MODIFICATION OF PENALTY FOR FAILURE TO FILE S 
                   CORPORATION RETURNS.

       Section 6699 of the 1986 Code is amended by adding at the 
     end the following new subsection:
       ``(e) Modifications.--In the case of any return required to 
     be filed after December 31, 2008, the dollar amount in effect 
     under subsection (b)(1) shall be increased by $4.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Dakota (Mr. Pomeroy) and the gentleman from Minnesota (Mr. 
Ramstad) each will control 20 minutes.
  The Chair recognizes the gentleman from North Dakota.
  Mr. POMEROY. Mr. Speaker, I ask unanimous consent that 10 minutes of 
my time be controlled by Mr. Andrews of New Jersey of the Education and 
Labor Committee.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Dakota?
  There was no objection.
  Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume.
  I rise today in favor of moving this bill, H.R. 6382, the Pension 
Protection Technical Corrections Act, forward in an expedited manner. 
This bill is important to workers so that their retirement years will 
be more secure, and to employers so that the cost of the defined 
benefit pension which they are committed to offering their employees 
will be more predictable.
  The Tax Code and the Employee Retirement Income Security Act, known 
as ERISA, are complex and broad reaching laws. When Congress enacts 
laws to change them, such as in the Pension Protection Act, the 
interactions between the Code and ERISA are difficult, and we need to 
make corrections of drafting areas in other aspects of the law that 
come to light after the bill is passed. That is why we are here today.
  We need to act quickly. The Pension Protection Act became effective 
more than 6 months ago, imposing sweeping reforms that affect how 
employers fund the promises that they make to their employees in the 
defined benefit pensions. In addition, the bill includes many 
significant reforms to multi-employers' pension plans that cover union 
workers.
  Three months ago, this House unanimously passed a bill that included 
many of the provisions that are before us this morning, but that bill 
did not address several key issues of special importance to those 
employers who continue to weather the storm and are persistently 
committed to providing a secured lifetime pension benefit to workers.
  At that time, there was a bipartisan agreement that Congress needed 
to take further action. It is important that we are here today to 
complete our work because American workers are anxious about their 
retirement security.
  In April, the Employee Benefit Research Institute reported that 
worker confidence in their financial prospects for retirement have 
reached a 7-year low. Their 2008 Retirement Confidence Survey found 
only 18 percent of workers very confident they will have enough money 
to live comfortably through their retirement years. This is down from 
27 percent 1 year ago, a drop of nearly a third.
  I commend the Chairman of the Ways and Means Committee, the Chairman 
of the Education and Labor Committee for bringing a bill to the floor 
that gives both public and private sector defined benefit plans the 
added clarity they need to comply with the Pension Protection Act.

                              {time}  1130

  Let me also extend thanks to the staff of the Ways and Means 
Committee, the Education and Labor Committee and their counterparts in 
the Senate. Their hard work brings us to this point with a bill that 
provides the needed clarifications of congressional intent that the 
Treasury Department and Internal Revenue Service need to implement the 
provisions of the Pension Protection Act.
  Today we also have an opportunity to pass a bill that will help the 
beneficiary of a 401(k) plan who would like to keep the money for 
retirement savings since the bill before us clarifies the application 
of a non-spousal rollover provision and the construction worker whose 
pension may experience underfunding since this bill also clarifies how 
the notice he or she will get alerts him or her to any benefit 
reductions.
  I want to speak for a minute about the asset smoothing provision of 
this bill, which I believe is substantively very important. 
Importantly, H.R. 6382 does not leave the gaps that were not included 
in this bill in this body when it passed a few months ago, because the 
bill before us today gives relief to plan sponsors from volatility in 
plan costs faced by employers who provide defined benefit pensions.
  It allows plan sponsors to use a tool called ``asset smoothing'' to 
balance out the ups and downs that occur with investments. Several 
months ago, one of my colleagues from the other side of the aisle 
called on this body to pass asset smoothing quickly. Today we have that 
opportunity.
  As we have seen a sharp market downturn occur in the stock market,

[[Page 14440]]

this tool becomes even more important to help employers plan for 
pension expenses. With this clarification of congressional intent, 
employers will not be forced to base pension plan contributions on 
shifting marked-to-market values. For some large employers, this can 
mean a difference of several million dollars. Our economy has gone 
through a patch where over 400,000 jobs have been lost in the last 6 
months alone. We do not want to put employers in this pinch between 
providing pensions or keeping employees on their jobs.
  Some might think if the employer has to put more money in the 
pension, it is really a great thing for workers. But there is an 
important hitch to this consideration. Our Nation's pension plan is a 
voluntary system and employers can decide that offering a pension 
simply no longer makes good business sense.
  We have businesses struggling in this recession. Many plans have been 
frozen as employers ask, can we continue to provide pension plan 
coverage? 3.3 million workers have seen their benefit plans frozen in 
some way, and, unfortunately, when the Department of Labor analyzed the 
Pension Protection Act, they conducted no research on whether the new 
stringent funding requirements would accelerate the freezing of pension 
plans. I believe there is no question the Pension Protection Plan has 
accelerated the freezing of pension plans, and if we don't pass this 
act and that smoothing provision in this technical corrections bill, 
more plans will be frozen.
  Another important fix included in this bill is the defined benefit 
pension plans that State and local governments offer their employers. 
These public plans were caught in the provisions of a Pension 
Protection Act designed only to cover cash balance conversions. It was 
never intended to apply to public pension plans. But, unfortunately, 
the Treasury Department has held that the credited interest provision 
of public pension plans is limited to a rate no greater than a market 
rate of return.
  Under long-existing law that has been in place for decades, the 
public plans themselves and the political subdivisions or States that 
sponsor those plans determined what the credited interest rate would 
be. As a former employee of the State of North Dakota, for example, I 
have a credited rate of interest on a pension accrual that I had, a 
vested pension benefit that I have, of 7.5 percent that was determined 
by the State of North Dakota. It ought to be recognized, as it has been 
in the past. But under the Treasury provision, no greater than market 
rate of return would be allowed.
  Well, public plans not subject to ERISA, but with their unique 
protections and plan designs, should benefit from this clarification to 
ensure rates of interest provided by State and local governments. Who 
in the world are we in Congress, without even thinking that this 
applied to public pension plans in the first place, to say what the 
credited rate of interest should be? We have got to trust State and 
local political subdivisions with this call, and this bill fixes that 
problem.
  In conclusion, just let me say that American workers are anxious 
about their retirement security. Today, Congress can act to address and 
reduce this uneasiness. It is a very important technical fix before us, 
and I urge its adoption.
  I reserve the balance of my time.
  Mr. RAMSTAD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 6382, the Pension 
Protection Technical Corrections Act. Pension technical corrections, 
Mr. Speaker, are hardly considered glamorous bills. The Tax Code and 
ERISA which govern pension plans are complicated, to say the least, and 
the interaction between the two sets of laws is very complex. So it is 
no surprise that a pension technical corrections bill is, as named, 
highly technical.
  But that doesn't detract from the importance of this bill. Because of 
the complexity of this area of law, a number of glitches have been 
discovered that prevent pension laws from operating the way Congress 
has intended. This bill will fix those glitches, will correct those 
errors, whether they are drafting or other errors. This will give much-
needed certainty to plan administrators, government regulators, and, 
most importantly, the people who depend on pensions for their financial 
security in retirement.
  That is the bottom line. This is all about making these corrections 
so that the people who depend on pensions for their financial security 
in retirement will have certainty and security.
  Mr. Speaker, I realize some people do not fully appreciate what a 
difficult and painstaking process is involved in technical corrections. 
In fact, until I got involved directly, I didn't realize how complex a 
process this was, involving both caucuses, five committees in both 
bodies of Congress and three executive branch agencies.
  In the case of the bill before us today, the process is led by the 
staff of the Joint Committee on Taxation, which did a marvelous job, 
and includes collaboration from the bipartisan staff of the Ways and 
Means Committee and Education and Labor Committee, as well as their 
counterparts from the Senate Finance and Senate Health Committees. All 
of those staffers should be commended, Mr. Speaker, for the excellent 
work they did on this legislation. Also involved were representatives 
from the Treasury and Labor Departments and the Pension Benefit 
Guaranty Corporation.
  Sometimes, Mr. Speaker, there are 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 technical title of the measure 
before us. Getting all these players to agree that the sky is blue is 
certainly not an easy task, so I can't overstate how monumental it is 
that we now have a bill that survived that rigorous process.
  There is also another title in the bill containing a few other 
pension-related items that are not purely technical. I want to thank 
Chairman Rangel and his staff, as well as the Members here before us 
today, the outstanding Members on the other side the aisle from the 
committee, Mr. Pomeroy and also the gentleman from New Jersey, for 
their cooperation and collaboration on the bill.
  I also want to thank Mildeen Worrell from Chairman Rangel's staff for 
working to include the provision that I authored that solves an urgent 
problem for State employees back home in Minnesota, including many, 
many first responders, police, firefighters and other first responders, 
as well as teachers. I am also grateful to Ranking Member McCrery and 
his excellent staff for their assistance.
  Mr. Speaker, let me conclude by saying it is time to provide much-
needed certainty to our Nation's pension plans and the people who rely 
on them. I urge my colleagues to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ANDREWS. Mr. Speaker, I rise to claim the 10 minutes of the 
Committee on Education and Labor.
  The SPEAKER pro tempore. The gentleman from New Jersey is recognized 
for 10 minutes.
  Mr. ANDREWS. Mr. Speaker, I rise in support of the legislation and 
would like to echo the comments of my friend from Minnesota in thanking 
the efforts of so many people to make this bill possible, beginning 
with Chairman Rangel, Mr. McCrery, Chairman Miller of the Education and 
Labor Committee, Ranking Member McKeon, Subcommittee Chair Pomeroy, Mr. 
Ramstad and others. This has been a very cooperative and good effort.
  Healthy pensions are healthy for the economy of the United States. 
When the tens of millions of people who are covered by pension funds 
feel more confident about the security of their money and the 
likelihood that it will continue on into the future, they are more 
likely to be consumers and investors and engines of economic 
opportunity for the rest of us in the economy.
  This act makes a number of important corrections that will strengthen 
and therefore make more healthy the

[[Page 14441]]

pension funds of our country. I embrace and support each of those 
changes. I would like to highlight three of them that I believe are of 
significant and important relevance.
  The first has to do with the so-called smoothing provisions, which 
will particularly benefit the larger employers. We have significant and 
rigid new standards under the 2006 act which require underfunded plans 
to catch up so that they are fully funded as soon as reasonably 
possible. But it is important that those rigid standards do not choke 
off the economic activity of the plan sponsor, and when they are too 
rigid, they run that risk. So these smoothing provisions give the plan 
sponsor, the employer, the flexibility to make a rational judgment 
about how much money is needed to be put into the fund to catch it up 
how soon.
  In my view, this reform is a win for the taxpayers, it is a win for 
the pensioners and employees and a win for the employer. It is a win 
for the taxpayers in that a plan that is caught up in a rational way by 
a successful employer is qualitatively less likely to go into default, 
to go into insolvency and to call for a bailout by the Pension Benefit 
Guaranty Corporation. Ultimately, the taxpayers of the country stand 
behind the PBGC. The fewer claims of insolvency, the less risk to the 
taxpayer.
  Second, I believe that these provisions are very good for pensioners 
and employers because these provisions substantially increase the 
likelihood that the pension fund will be stable, permanent and a source 
of income for the person for the rest of his or her life.
  Finally, this is most certainly an advantage for all those who 
benefit from the pension system. So I think that this is a very 
important change.
  This is an important change for small business as well. One 
particular change that lets small businesses rely upon a fixed 5.5 
percent rate of interest in their pension calculations means that the 
person running a dental practice or a small manufacturing plant does 
not have to incur unnecessary legal or accounting or actuarial fees to 
calculate and recalculate changing assumptions. The matter of a few 
thousand dollars for that plan sponsor is very important, and it leads 
to the result that more employers will keep these plans, as my friend 
Mr. Pomeroy expressed concern about earlier on.
  Finally, I would join with the comments of Mr. Pomeroy and Mr. 
Ramstad about the very significant importance of the public employee 
pension fund provisions in this bill. The history of public employee 
pension funds in this country is a very stable and positive one. With a 
few rare exceptions, fund trustees around this country have made proper 
fiduciary choices with the investment decisions for the men and women 
who rely upon those decisions, and one of those decisions they make is 
the credit interest rate that ought to be used in calculating certain 
distributions to retired firefighters, teachers, police officers and 
other public employees.
  There is a saying that is not unique to pension law, but unique to 
common sense, which is if it ain't broke, don't fix it. Public employee 
trustees around the country have done an excellent job in managing 
their funds, by and large. This bill has a provision in it that assures 
that those trustees will continue to have the freedom and flexibility 
to make their own determination as to what that credit interest rate 
ought to be and that that determination should not be supplanted by the 
judgment of any Federal agency or by this Congress.
  You might say, well, what about the issue of exposure of the Federal 
taxpayer? Aren't we subjecting the Federal taxpayer to risk if the 
State and local trustees make the wrong decision?

                              {time}  1145

  Mr. Speaker, we are most emphatically not, because the plans about 
which I speak are not backed by the Pension Benefit Guaranty 
Corporation. So the idea of Federal regulation imposing itself upon the 
decisions of these trustees is without any merit or justification. This 
will mean that police officers and firefighters and teachers and other 
public employees will get the fair pension for which they bargained and 
to which they are entitled.
  I would like to express my appreciation to the minority and majority 
staff for their hard work on this bill. I think it well serves the 
country. I would urge my colleagues on both sides of the aisle to 
support it.
  I reserve the balance of my time.
  Mr. POMEROY. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Georgia, my colleague on the Ways and Means Committee, 
Mr. Lewis.
  Mr. LEWIS of Georgia. Mr. Speaker, I want to thank my good friend Mr. 
Pomeroy for yielding.
  Mr. Speaker, people are suffering, people are barely getting by. Some 
people are using their retirement savings today to pay their credit 
card bills or to avoid foreclosure on their home. This is a choice 
people should not have to make. Today, we offer just a little bit of 
help.
  Mr. Speaker, after a lifetime of hard work, people need to know that 
they can retire and their pensions will be there for them. This bill 
will help thousands of Delta employees who live and work in my 
district, thousands of pilots and airline workers, whose retirement 
savings slipped away when the airline went bankrupt.
  The payments they are receiving through the bankruptcy agreement are 
not going to make up for that loss. This bill will allow these workers 
to take their bankruptcy payment and put their money into a retirement 
account. Pilots and airline workers are asking for this help so they 
can help put their money back where it belongs, growing into a nest egg 
for retirement.
  Mr. Speaker, I want to thank Chairman Rangel and the great staff of 
the Ways and Means Committee and my own staff who worked with me to 
help pilots and airline workers in this bill today. We must do more to 
help people earn enough money and save enough money so they can live 
well when they retire. We must protect the hopes and dreams of 
America's workers.
  Mr. RAMSTAD. Mr. Speaker, I yield myself such time as I may consume.
  Just briefly, I rise again in strong support of the Pension 
Protection Technical Corrections Act. It truly is a vital piece of 
legislation for the people of America. I want to again thank Chairman 
Rangel, Chairman Miller, Ranking Member McCrery, Mr. Pomeroy, and Mr. 
Andrews for their collaboration on this legislation, and last but not 
least the unsung heroes who worked tirelessly to put this product 
together, all the staff members of the respective committees.
  I urge passage of the bill.
  I yield back the balance of my time.
  Mr. ANDREWS. I would just reiterate that we urge passage of this 
well-thought-out bill, and I yield back the balance of my time.
  The SPEAKER pro tempore. The gentleman from North Dakota has 30 
seconds remaining.
  Mr. POMEROY. Mr. Speaker, I just want to thank Mr. Ramstad, a 
committee member who meant so much to the Ways and Means Committee, Mr. 
Lewis for his work with the Delta pilots and the provision he speaks 
to, as well as Mr. Andrews, the pension retirement benefits expert on 
the Ways and Means and the Ed and Labor Committee.
  I would like to think that, as we get this finished today, this sets 
the stage for joint collaboration further as we work on pension and 
advancing retirement security.
  Mr. GEORGE MILLER of California. Mr. Speaker, I want to thank the 
Ways and Means Committee for sheparding this bill, the Pension 
Protection Technical Corrections Act, to the floor.
  The Pension Protection Act contained major changes to the funding 
rules for defined benefit pension plans. The final bill was over 900 
pages long.
  As can be expected with any massive legislative vehicle, the final 
law contained dozens of mistakes, some technical and some not so 
technical.
  The bill before us today primarily fixes only the technical errors 
that have been found in the bill. It does not seek to make any changes 
in pension policy.
  The bill was put together by the staffs of all the committees of 
jurisdiction, both in the

[[Page 14442]]

House and Senate and on both sides of the aisle. The bill has been 
vetted by the key regulatory agencies--the Department of Labor, 
Treasury Department, and the Pension Benefit Guaranty Corporation 
(PBGC).
  The bill mostly fixes incorrect punctuation and citations. It also 
contains a few substantive changes in places where the language of the 
PPA was unclear and clarification was needed for the agencies to be 
able to carry out the purposes of the law.
  I would like to address some confusion created by the Treasury 
Department, in which it, as part of its PPA interpretation, provided 
guidance on the wear-away of workers' accrued pension benefits in cash 
balance plans.
  An important part of the Pension Protection Act was to make clear 
that the wear-away of workers' benefits was illegal in cash balance 
plans, not only with respect to normal retirement benefits, but also 
with respect to early retirement benefits. As a political compromise, 
Congress made this rule prospective only, with the question of wear-
away under the pre-PPA law to be decided by the Federal courts.
  The Treasury Department issued a first ruling last year that 
undermined this carefully crafted compromise. Treasury recently issued 
new rules in which it indicated it will not rule on pre-PPA wear-away. 
There are many court cases pending on this matter and it must remain 
solely to the courts to decide whether pre-PPA pension law permitted 
employers to wear-away workers' otherwise legally protected accrued 
benefits.
  Although I did not support the PPA, I hope that the House can pass 
these technical changes and then move on to the more pressing 
retirement issues of the day.
  With the faltering economy and housing market crisis, more and more 
individuals are withdrawing their 401(k) pension monies in order to pay 
their mortgages and other bills.
  These families are being forced to sacrifice their retirement 
security in order to survive day to day.
  The Congress needs to address the real retirement security crisis 
facing working families.
  The Pension Protection Act only made the problem worse. The law 
forced companies to speed up pension plan funding regardless of the 
financial status of the company or the pension plan. While faster 
funding had some superficial appeal, the real result is to encourage 
employers to terminate their pension plans or seek access to the 
accumulated assets.
  Workers are increasingly dependent on 401(k) savings plans for their 
retirement security.
  But as my Committee has found over the past year, 401(k) plans are 
being decimated by below average investment returns and excessive fees.
  The Congress needs to start thinking about these more pressing 
issues.
  Mr. POMEROY. 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. 6382.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________