[Congressional Record (Bound Edition), Volume 154 (2008), Part 18]
[House]
[Pages 24635-24643]
[From the U.S. Government Publishing Office, www.gpo.gov]




           WORKER, RETIREE, AND EMPLOYER RECOVERY ACT OF 2008

  Mr. POMEROY. Mr. Speaker, I ask unanimous consent that the Committees 
on Ways and Means and Education and Labor be discharged from further 
consideration of the bill (H.R. 7327) to make technical corrections 
related to the Pension Protection Act of 2006, and for other purposes, 
and ask for its immediate consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mr. Lampson). Is there objection to the 
request of the gentleman from North Dakota?
  There was no objection.
  The text of the bill is as follows:

                               H.R. 7327

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Worker, 
     Retiree, and Employer Recovery Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

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

Sec. 100. References in title.

Subtitle A--Technical Corrections Related to the Pension Protection Act 
                                of 2006

Sec. 101. Amendments related to Title I.
Sec. 102. Amendments related to title II.
Sec. 103. Amendments related to title III.
Sec. 104. Amendments related to title IV.
Sec. 105. Amendments related to title V.
Sec. 106. Amendments related to title VI.
Sec. 107. Amendments related to title VII.
Sec. 108. Amendments related to title VIII.
Sec. 109. Amendments related to title IX.
Sec. 110. Amendments related to title X.
Sec. 111. Amendments related to title XI.
Sec. 112. Effective date.

                      Subtitle B--Other Provisions

Sec. 121. Amendments Related to Sections 102 and 112 of the Pension 
              Protection Act of 2006.
Sec. 122. Modification of interest rate assumption required with 
              respect to certain small employer plans.
Sec. 123. Determination of market rate of return for governmental 
              plans.
Sec. 124. Treatment of certain reimbursements from governmental plans 
              for medical care.
Sec. 125. Rollover of amounts received in airline carrier bankruptcy to 
              Roth IRAs.
Sec. 126. Determination of asset value for special airline funding 
              rules.
Sec. 127. Modification of penalty for failure to file partnership 
              returns.
Sec. 128. Modification of penalty for failure to file S corporation 
              returns.

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

Sec. 201. Temporary waiver of required minimum distribution rules for 
              certain retirement plans and accounts.
Sec. 202. Transition rule clarification.
Sec. 203. Temporary modification of application of limitation on 
              benefit accruals.
Sec. 204. Temporary delay of designation of multiemployer plans as in 
              endangered or critical status.
Sec. 205. Temporary extension of the funding improvement and 
              rehabilitation periods for multiemployer pension plans in 
              critical and endangered status for 2008 or 2009.

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

     SEC. 100. REFERENCES IN TITLE.

       For purposes of this title:
       (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.

Subtitle A--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:

[[Page 24636]]

       ``(iii) Plan with alternate valuation date.--The Secretary 
     of the Treasury shall prescribe regulations for the 
     application of this paragraph in the case of a plan which has 
     a valuation date other than the first day of the plan 
     year.'', and
       (iii) by striking ``and short years'' in the heading of 
     subparagraph (E) and inserting ``, short years, and years 
     with alternate valuation date''.
       (H) Section 303(k)(6)(B) of ERISA is amended by striking 
     ``, except'' and all that follows and inserting a period.
       (2) Amendments to 1986 code.--
       (A) Section 430(b) of the 1986 Code is amended to read as 
     follows:
       ``(b) Target Normal Cost.--For purposes of this section:
       ``(1) In general.--Except as provided in subsection (i)(2) 
     with respect to plans in at-risk status, the term `target 
     normal cost' means, for any plan year, the excess of--
       ``(A) the sum of--
       ``(i) the present value of all benefits which are expected 
     to accrue or to be earned under the plan during the plan 
     year, plus
       ``(ii) the amount of plan-related expenses expected to be 
     paid from plan assets during the plan year, over
       ``(B) the amount of mandatory employee contributions 
     expected to be made during the plan year.
       ``(2) Special rule for increase in compensation.--For 
     purposes of this subsection, if any benefit attributable to 
     services performed in a preceding plan year is increased by 
     reason of any increase in compensation during the current 
     plan year, the increase in such benefit shall be treated as 
     having accrued during the current plan year.''.
       (B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended 
     by inserting ``beginning'' before ``after 2008''.
       (C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is 
     amended by inserting ``for such year'' after ``beginning in 
     2007)''.
       (D) Section 430(f) of the 1986 Code is amended--
       (i) by striking ``as of the first day of the plan year'' 
     the second place it appears in the first sentence of 
     paragraph (3)(A),
       (ii) by striking ``paragraph (2)'' in paragraph (4)(A) and 
     inserting ``paragraph (3)'',
       (iii) by striking ``paragraph (1), (2), or (4) of section 
     206(g)'' in paragraph (6)(B)(iii) and inserting ``subsection 
     (b), (c), or (e) of section 436'',
       (iv) by striking ``the sum of'' in paragraph (6)(C), and
       (v) by striking ``of the Treasury'' in paragraph (8).
       (E) Section 430(h)(2) of the 1986 Code is amended--
       (i) by inserting ``and target normal cost'' after ``funding 
     target'' in subparagraph (B),
       (ii) by striking ``liabilities'' and inserting ``benefits'' 
     in subparagraph (B),
       (iii) by striking ``section 417(e)(3)(D)(i)) for such 
     month'' in subparagraph (F) and inserting ``section 
     417(e)(3)(D)(i) for such month)'', and
       (iv) by striking ``subparagraph (B)'' in subparagraph (F) 
     and inserting ``subparagraph (C)''.
       (F) Section 430(i) of the 1986 Code is amended--
       (i) in paragraph (2)--

       (I) by striking subparagraph (A) and inserting the 
     following new subparagraph:

       ``(A) the excess of--
       ``(i) the sum of--

       ``(I) the present value of all benefits which are expected 
     to accrue or to be earned under the plan during the plan 
     year, determined using the additional actuarial assumptions 
     described in paragraph (1)(B), plus
       ``(II) the amount of plan-related expenses expected to be 
     paid from plan assets during the plan year, over

       ``(ii) the amount of mandatory employee contributions 
     expected to be made during the plan year, plus'', and

       (II) in subparagraph (B), by striking ``the target normal 
     cost (determined without regard to this paragraph) of the 
     plan for the plan year'' and inserting ``the amount 
     determined under subsection (b)(1)(A)(i) with respect to the 
     plan for the plan year'', and

       (ii) by striking ``subparagraph (A)(ii)'' in the last 
     sentence of paragraph (4)(B) and inserting ``subparagraph 
     (A)''.
       (G) Section 430(j)(3) of the 1986 Code is amended--
       (i) by adding at the end of subparagraph (A) the following 
     new sentence: ``In the case of plan years beginning in 2008, 
     the funding shortfall for the preceding plan year may be 
     determined using such methods of estimation as the Secretary 
     may provide.'',
       (ii) by striking ``section 302(c)'' in subparagraph 
     (D)(ii)(II) and inserting ``section 412(c)'',
       (iii) by adding at the end of subparagraph (E) the 
     following new clause:
       ``(iii) Plan with alternate valuation date.--The Secretary 
     shall prescribe regulations for the application of this 
     paragraph in the case of a plan which has a valuation date 
     other than the first day of the plan year.'', and
       (iv) by striking ``and short years'' in the heading of 
     subparagraph (E) and inserting ``, short years, and years 
     with alternate valuation date''.
       (H) Section 430(k) of the 1986 Code is amended--
       (i) by inserting ``(as provided under paragraph (2))'' 
     after ``applies'' in paragraph (1), and
       (ii) by striking ``, except'' and all that follows in 
     paragraph (6)(B) and inserting a period.
       (3) Effective dates.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by paragraphs (1)(A), (1)(F)(i), (2)(A), 
     and (2)(F)(i) shall apply to plan years beginning after 
     December 31, 2008.
       (B) Election for earlier application.--The amendments made 
     by such paragraphs shall apply to a plan for the first plan 
     year beginning after December 31, 2007, if the plan sponsor 
     makes the election under this subparagraph. An election under 
     this subparagraph shall be made at such time and in such 
     manner as the Secretary of the Treasury or the Secretary's 
     delegate may prescribe, and, once made, may be revoked only 
     with the consent of the Secretary.
       (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.

[[Page 24637]]

       (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 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

[[Page 24638]]

       (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).
       (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.--

[[Page 24639]]

       (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.--
       (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

[[Page 24640]]

     (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, 2009.
       (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,
       (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'',

[[Page 24641]]

       (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 subtitle, the 
     amendments made by this subtitle shall take effect as if 
     included in the provisions of the 2006 Act to which the 
     amendments relate.

                      Subtitle B--Other Provisions

     SEC. 121. 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. 122. 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, 2008.

     SEC. 123. 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. 124. 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 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. 125. 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. 126. DETERMINATION OF ASSET VALUE FOR SPECIAL AIRLINE 
                   FUNDING RULES.

       (a) In General.--Section 402(e)(4)(C) of the 2006 Act is 
     amended to read as follows:
       ``(C) the value of plan assets shall be determined under 
     sections 303(g)(3) of such Act and 430(g)(3) of such Code.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after December 31, 2007.

     SEC. 127. MODIFICATION OF PENALTY FOR FAILURE TO FILE 
                   PARTNERSHIP RETURNS.

       (a) In General.--Section 6698(b)(1) of the 1986 Code is 
     amended by striking ``$85'' and inserting ``$89''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to returns required to be filed after December 
     31, 2008.

     SEC. 128. MODIFICATION OF PENALTY FOR FAILURE TO FILE S 
                   CORPORATION RETURNS.

       (a) In General.--Section 6699(b)(1) of the 1986 Code is 
     amended by striking ``$85'' and inserting ``$89''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to returns required to be filed after December 
     31, 2008.

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

     SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION 
                   RULES FOR CERTAIN RETIREMENT PLANS AND 
                   ACCOUNTS.

       (a) In General.--Section 401(a)(9) of the Internal Revenue 
     Code of 1986 (relating to required distributions) is amended 
     by adding at the end the following new subparagraph:

[[Page 24642]]

       ``(H) Temporary waiver of minimum required distribution.--
       ``(i) In general.--The requirements of this paragraph shall 
     not apply for calendar year 2009 to--

       ``(I) a defined contribution plan which is described in 
     this subsection or in section 403(a) or 403(b),
       ``(II) a defined contribution plan which is an eligible 
     deferred compensation plan described in section 457(b) but 
     only if such plan is maintained by an employer described in 
     section 457(e)(1)(A), or
       ``(III) an individual retirement plan.

       ``(ii) Special rules regarding waiver period.--For purposes 
     of this paragraph--

       ``(I) the required beginning date with respect to any 
     individual shall be determined without regard to this 
     subparagraph for purposes of applying this paragraph for 
     calendar years after 2009, and
       ``(II) if clause (ii) of subparagraph (B) applies, the 5-
     year period described in such clause shall be determined 
     without regard to calendar year 2009.''.

       (b) Eligible Rollover Distributions.--Section 402(c)(4) of 
     the Internal Revenue Code of 1986 (defining eligible rollover 
     distribution) is amended by adding at the end the following 
     new flush sentence:

     ``If all or any portion of a distribution during 2009 is 
     treated as an eligible rollover distribution but would not be 
     so treated if the minimum distribution requirements under 
     section 401(a)(9) had applied during 2009, such distribution 
     shall not be treated as an eligible rollover distribution for 
     purposes of section 401(a)(31) or 3405(c) or subsection (f) 
     of this section.''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply for calendar years beginning after December 31, 2008.
       (2) Provisions relating to plan or contract amendments.--
       (A) In general.--If this paragraph applies to any pension 
     plan or contract amendment, such pension plan or contract 
     shall not fail to be treated as being operated in accordance 
     with the terms of the plan during the period described in 
     subparagraph (B)(ii) solely because the plan operates in 
     accordance with this section.
       (B) Amendments to which paragraph applies.--
       (i) In general.--This paragraph shall apply to any 
     amendment to any pension plan or annuity contract which--

       (I) is made pursuant to the amendments made by this 
     section, and
       (II) is made on or before the last day of the first plan 
     year beginning on or after January 1, 2011.

     In the case of a governmental plan, subclause (II) shall be 
     applied by substituting ``2012'' for ``2011''.
       (ii) Conditions.--This paragraph shall not apply to any 
     amendment unless during the period beginning on the effective 
     date of the amendment and ending on December 31, 2009, the 
     plan or contract is operated as if such plan or contract 
     amendment were in effect.

     SEC. 202. TRANSITION RULE CLARIFICATION.

       (a) Amendment to ERISA.--Subparagraph (B) of section 
     303(c)(5) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1083(c)(5)) is amended--
       (1) by striking clause (iii) and redesignating clause (iv) 
     as clause (iii); and
       (2) by striking clause (i) and inserting the following:
       ``(i) In general.--Except as provided in clause (iii), in 
     the case of plan years beginning after 2007 and before 2011, 
     only the applicable percentage of the funding target shall be 
     taken into account under paragraph (3)(A) in determining the 
     funding shortfall for purposes of paragraph (3)(A) and 
     subparagraph (A).''.
       (b) Amendment to 1986 Code.--Subparagraph (B) of section 
     430(c)(5) of the Internal Revenue Code of 1986 is amended--
       (1) by striking clause (iii) and redesignating clause (iv) 
     as clause (iii); and
       (2) by striking clause (i) and inserting the following:
       ``(i) In general.--Except as provided in clause (iii), in 
     the case of plan years beginning after 2007 and before 2011, 
     only the applicable percentage of the funding target shall be 
     taken into account under paragraph (3)(A) in determining the 
     funding shortfall for purposes of paragraph (3)(A) and 
     subparagraph (A).''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply as if included in the enactment of 
     sections 102 and 112, respectively, of the Pension Protection 
     Act of 2006.

     SEC. 203. TEMPORARY MODIFICATION OF APPLICATION OF LIMITATION 
                   ON BENEFIT ACCRUALS.

       In the case of the first plan year beginning during the 
     period beginning on October 1, 2008, and ending on September 
     30, 2009, sections 206(g)(4)(A) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1056(g)(4)(A)) and 
     436(e)(1) of the Internal Revenue Code of 1986 shall be 
     applied by substituting the plan's adjusted funding target 
     attainment percentage for the preceding plan year for such 
     percentage for such plan year but only if the adjusted 
     funding target attainment percentage for the preceding plan 
     year is greater.

     SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER 
                   PLANS AS IN ENDANGERED OR CRITICAL STATUS.

       (a) In General.--Notwithstanding the actuarial 
     certification under section 305(b)(3) of the Employee 
     Retirement Income Security Act of 1974 and section 432(b)(3) 
     of the Internal Revenue Code of 1986, if a plan sponsor of a 
     multiemployer plan elects the application of this section, 
     then, for purposes of section 305 of such Act and section 432 
     of such Code--
       (1) the status of the plan for its first plan year 
     beginning during the period beginning on October 1, 2008, and 
     ending on September 30, 2009, shall be the same as the status 
     of such plan under such sections for the plan year preceding 
     such plan year, and
       (2) in the case of a plan which was in endangered or 
     critical status for the preceding plan year described in 
     paragraph (1), the plan shall not be required to update its 
     plan or schedules under section 305(c)(6) of such Act and 
     section 432(c)(6) of such Code, or section 305(e)(3)(B) of 
     such Act and section 432(e)(3)(B) of such Code, whichever is 
     applicable, until the plan year following the first plan year 
     described in paragraph (1).

     If section 305 of the Employee Retirement Income Security Act 
     of 1974 and section 432 of the Internal Revenue Code of 1986 
     did not apply to the preceding plan year described in 
     paragraph (1), the plan actuary shall make a certification of 
     the status of the plan under section 305(b)(3) of such Act 
     and section 432(b)(3) of such Code for the preceding plan 
     year in the same manner as if such sections had applied to 
     such preceding plan year.
       (b) Exception for Plans Becoming Critical During 
     Election.--If--
       (1) an election was made under subsection (a) with respect 
     to a multiemployer plan, and
       (2) such plan has, without regard to such election, been 
     certified by the plan actuary under section 305(b)(3) of such 
     Act and section 432(b)(3) of such Code to be in critical 
     status for the first plan year described in subsection 
     (a)(1),
     then such plan shall be treated as a plan in critical status 
     for such plan year for purposes of applying section 
     4971(g)(1)(A) of such Code, section 302(b)(3) of such Act 
     (without regard to the second sentence thereof), and section 
     412(b)(3) of such Code (without regard to the second sentence 
     thereof).
       (c) Election and Notice.--
       (1) Election.--An election under subsection (a) shall--
       (A) be made at such time and in such manner as the 
     Secretary of the Treasury or the Secretary's delegate may 
     prescribe and, once made, may be revoked only with the 
     consent of the Secretary, and
       (B) if the election is made--
       (i) before the date the annual certification is submitted 
     to the Secretary or the Secretary's delegate under section 
     305(b)(3) of such Act and section 432(b)(3) of such Code, be 
     included with such annual certification, and
       (ii) after such date, be submitted to the Secretary or the 
     Secretary's delegate not later than 30 days after the date of 
     the election.
       (2) Notice to participants.--
       (A) In general.--Notwithstanding section 305(b)(3)(D) of 
     such Act and section 431(b)(3)(D) of such Code, if the plan 
     is neither in endangered nor critical status by reason of an 
     election made under subsection (a)--
       (i) the plan sponsor of a multiemployer plan shall not be 
     required to provide notice under such sections, and
       (ii) the plan sponsor shall provide to the participants and 
     beneficiaries, the bargaining parties, the Pension Benefit 
     Guaranty Corporation, and the Secretary of Labor a notice of 
     the election and such other information as the Secretary of 
     the Treasury (in consultation with the Secretary of Labor) 
     may require--

       (I) if the election is made before the date the annual 
     certification is submitted to the Secretary or the 
     Secretary's delegate under section 305(b)(3) of such Act and 
     section 432(b)(3) of such Code, not later than 30 days after 
     the date of the certification, and
       (II) if the election is made after such date, not later 
     than 30 days after the date of the election.

       (B) Notice of endangered status.--Notwithstanding section 
     305(b)(3)(D) of such Act and section 431(b)(3)(D) of such 
     Code, if the plan is certified to be in critical status for 
     any plan year but is in endangered status by reason of an 
     election made under subsection (a), the notice provided under 
     such sections shall be the notice which would have been 
     provided if the plan had been certified to be in endangered 
     status.

     SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND 
                   REHABILITATION PERIODS FOR MULTIEMPLOYER 
                   PENSION PLANS IN CRITICAL AND ENDANGERED STATUS 
                   FOR 2008 OR 2009.

       (a) In General.--If the plan sponsor of a multiemployer 
     plan which is in endangered or critical status for a plan 
     year beginning in 2008 or 2009 (determined after application 
     of section 204) elects the application of this section, then, 
     for purposes of section 305 of the Employee Retirement Income 
     Security Act of 1974 and section 432 of the Internal Revenue 
     Code of 1986--

[[Page 24643]]

       (1) except as provided in paragraph (2), the plan's funding 
     improvement period or rehabilitation period, whichever is 
     applicable, shall be 13 years rather than 10 years, and
       (2) in the case of a plan in seriously endangered status, 
     the plan's funding improvement period shall be 18 years 
     rather than 15 years.
       (b) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Election.--An election under this section shall be made 
     at such time, and in such manner and form, as (in 
     consultation with the Secretary of Labor) the Secretary of 
     the Treasury or the Secretary's delegate may prescribe.
       (2) Definitions.--Any term which is used in this section 
     which is also used in section 305 of the Employee Retirement 
     Income Security Act of 1974 and section 432 of the Internal 
     Revenue Code of 1986 shall have the same meaning as when used 
     in such sections.
       (c) Effective Date.--This section shall apply to plan years 
     beginning after December 31, 2007.

  Mr. POMEROY. Mr. Speaker, I rise today in favor of moving this bill, 
H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008, 
forward in an expedited manner.
  Mr. Speaker, this Congress needs to provide pension funding relief 
rightaway before adjourning in order to prevent needless unemployment 
and unnecessary freezing of pension plans. We also need to help seniors 
who are forced to take funds out of retirement accounts that are much 
lower than balances at the end of last year.
  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 pensions, which they are committed to offering their employees, 
will be more predictable. This bill also provided relief to retirees 
over age 70 and a half who are required to take a distribution from 
their IRA or 401(k).
  I commend the Chairman and Ranking Member of the Ways and Means 
Committee, and the Chairman and Ranking Member of the Education and 
Labor Committee for bringing a bill to the floor that helps retirees, 
workers and pension plans cope with the unprecedented volatile 
investment environment while also including technical tax and ERISA 
provisions that give the added clarity retirement plans needed to 
comply with the Pension Protection Act.
  Let me also extend thanks to the staff of the Ways and Means 
Committee, and the Education and Labor Committee and their counterparts 
in the Senate. Their hard work brings us to this point.
  It is imperative that we act now.
  Facing the most severe recession in decades, U.S. companies will need 
to plan a careful business strategy and keep a firm control on 
expenses. According to a survey of Chief Executive Officers (CEOs), 
pension costs have become a major concern in this fiscal environment as 
sizeable increases in pension funding requirements due to the 
significant market declines will make an economic recovery more 
challenging.
  The bill takes important steps to help corporations remain committed 
to providing retirement promises to workers through defined benefit 
plans. In addition, the bill includes similar critical relief for 
multi-employers' pension plans that cover union workers at many smaller 
employers especially those in construction industry. At the same time 
if workers are covered in a plan and its funding level falls below a 
level at which benefit restrictions would apply the bill allows those 
plans to look at their 2008 funding level and protect workers from a 
mandated frozen pension.
  We do not want to put employers in a no win pinch when they would 
have to choose between providing pensions or keeping employees on their 
jobs. Our Nation's pension plan is a voluntary system and employers can 
decide that offering a pension simply no longer makes good business 
sense. Tonight Congress tells employers we understand that and we want 
to help you meet your pension obligations in a predictable way.
  For those retirees who must take a distribution from their IRA or 
401(k) account that today has a dramatically lower value than the 
account at the end of last year, the bill will allow them to not take 
such distributions in 2009.
  In conclusion, just let me say that American workers are anxious 
about their retirement security. Today, the House of Representatives is 
acting to address and to reduce this uneasiness. It is a very important 
bill, and I urge its adoption.
  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

                          ____________________