[110th Congress Public Law 458]
[From the U.S. Government Printing Office]
[DOCID: f:publ458.110]
[[Page 5091]]
WORKER, RETIREE, AND EMPLOYER RECOVERY ACT OF 2008
[[Page 122 STAT. 5092]]
Public Law 110-458
110th Congress
An Act
To make technical corrections related to the Pension Protection Act of
2006, and for other purposes. <<NOTE: Dec. 23, 2008 - [H.R. 7327]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Worker, Retiree,
and Employer Recovery Act of 2008.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short <<NOTE: 29 USC 1001 note.>> 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.
[[Page 122 STAT. 5093]]
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. <<NOTE: 26 USC 72 note.>> 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 <<NOTE: 29 USC 1082.>> 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) <<NOTE: 26
USC 412.>> 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 <<NOTE: 29 USC
1083.>> 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
[[Page 122 STAT. 5094]]
``(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 <<NOTE: 29
USC 1083.>> 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.'',
[[Page 122 STAT. 5095]]
(ii) by adding at the end of subparagraph (E)
the following new clause:
``(iii) Plan with alternate valuation date.--
The <<NOTE: Regulations.>> 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 <<NOTE: 29 USC
1083.>> 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 <<NOTE: >> is
amended to read as follows:
``(b) Target Normal Cost.--For purposes of this section:
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target normal
cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits which
are expected to accrue or to be earned under the
plan during the plan year, plus
``(ii) the amount of plan-related expenses
expected to be paid from plan assets during the
plan year, over
``(B) the amount of mandatory employee contributions
expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current plan
year, the increase in such benefit shall be treated as having
accrued during the current plan year.''.
(B) Section 430(c)(5)(B)(iii) of the 1986 Code is
amended by inserting ``beginning'' before ``after
2008''.
(C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is
amended by inserting ``for such year'' after ``beginning
in 2007)''.
(D) Section 430(f) of the 1986 Code is amended--
(i) by striking ``as of the first day of the
plan year'' the second place it appears in the
first sentence of paragraph (3)(A),
(ii) by striking ``paragraph (2)'' in
paragraph (4)(A) and inserting ``paragraph (3)'',
(iii) by striking ``paragraph (1), (2), or (4)
of section 206(g)'' in paragraph (6)(B)(iii) and
inserting ``subsection (b), (c), or (e) of section
436'',
(iv) by striking ``the sum of'' in paragraph
(6)(C), and
(v) by striking ``of the Treasury'' in
paragraph (8).
(E) Section 430(h)(2) of the 1986 Code is amended--
(i) by inserting ``and target normal cost''
after ``funding target'' in subparagraph (B),
(ii) by striking ``liabilities'' and inserting
``benefits'' in subparagraph (B),
[[Page 122 STAT. 5096]]
(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 <<NOTE: >> 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 <<NOTE: Regulations.>> 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 <<NOTE: 26 USC 430 note.>> dates.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by paragraphs (1)(A),
(1)(F)(i),
[[Page 122 STAT. 5097]]
(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 <<NOTE: 29 USC
1021.>> 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 <<NOTE: 29
USC 1056.>> 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 <<NOTE: 29 USC
1132.>> 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 <<NOTE: 26
USC 436.>> is amended--
[[Page 122 STAT. 5098]]
(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 <<NOTE: 26
USC 436.>> 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 <<NOTE: 29 USC 1021; 26 USC 436
note.>> 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 <<NOTE: 29 USC
1023.>> is amended--
[[Page 122 STAT. 5099]]
(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 <<NOTE: 29 USC 1371.>> 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 <<NOTE: 26
USC 401.>> 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 <<NOTE: 26 USC
411.>> 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 <<NOTE: 26 USC 414.>> 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 <<NOTE: 26 USC
4971.>> 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 <<NOTE: Applicability. 26 USC 401 note.>> 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.''.
[[Page 122 STAT. 5100]]
(e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of
the 1986 Code <<NOTE: 26 USC 409A.>> 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 <<NOTE: 29 USC 1084 note.>> 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 <<NOTE: 29 USC
1082.>> is amended by striking ``the plan adopts'' and
inserting ``the plan sponsor adopts''.
(B) Section 305(b)(3)(C) of ERISA <<NOTE: 29 USC
1085.>> 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
[[Page 122 STAT. 5101]]
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 <<NOTE: 29 USC
1085.>> 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 <<NOTE: 29 USC
1132.>> 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 <<NOTE: 26
USC 432.>> 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.''.
[[Page 122 STAT. 5102]]
(D) Section 432(e) of the 1986 Code <<NOTE: 26 USC
432.>> 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):
[[Page 122 STAT. 5103]]
``(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 <<NOTE: 26
USC 412.>> is amended by striking ``the plan adopts''
and inserting ``the plan sponsor adopts''.
(I) Section 4971(g)(4) of the 1986 Code <<NOTE: 26
USC 4971.>> 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 <<NOTE: 26 USC
4971.>> is amended by striking ``Section 4971(c)(2) of
such Code'' and inserting ``Section 4971(e)(2) of such
Code''.
(B) <<NOTE: Applicability. 26 USC 412
note.>> 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, <<NOTE: 26 USC 411 note.>> 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 <<NOTE: 29 USC 1055.>> 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 <<NOTE: 26 USC 417.>> is amended by striking
``clause (ii)'' and inserting ``subparagraph (C)''.
(B)(i) Section 415(b)(2)(E)(v) of the 1986
Code <<NOTE: 26 USC 415.>> is amended to read as
follows:
``(v) <<NOTE: Applicability.>> 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) <<NOTE: Effective date. 26 USC 415
note.>> Except as provided in subclause (II), the
amendment made by clause (i) shall apply to years
beginning after December 31, 2008.
[[Page 122 STAT. 5104]]
(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 <<NOTE: 29 USC 1306.>> is amended by striking ``1990'' and
inserting ``2005''.
(b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the
2006 Act <<NOTE: 26 USC 430 note.>> 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, <<NOTE: 29 USC 1344.>> is
redesignated as subsection (f).
(d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of
ERISA <<NOTE: 29 USC 1341.>> 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 <<NOTE: 29 USC 1350.>> 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 <<NOTE: 29 USC 1021.>> 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).''.
[[Page 122 STAT. 5105]]
(2) Section 4221 of ERISA <<NOTE: 29 USC 1401.>> 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 <<NOTE: 29 USC
1024.>> 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 <<NOTE: 29 USC 1021 note.>> 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 <<NOTE: 29 USC 1310.>> 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 <<NOTE: 29 USC
1341.>> 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 <<NOTE: 29 USC
1342.>> 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 <<NOTE: 29 USC 1059.>> 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). <<NOTE: Records. Reports.>> 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 <<NOTE: 29 USC 1021.>> 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.''.
[[Page 122 STAT. 5106]]
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 <<NOTE: 29 USC
1108.>> 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, <<NOTE: 26
USC 4975.>> 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 <<NOTE: 26 USC 4975 note.>> 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) <<NOTE: 29
USC 1108.>> of ERISA is amended by striking ``or less''.
(2) Amendments to 1986 code.--Section 4975(d) of the 1986
Code <<NOTE: 26 USC 4975.>> 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
[[Page 122 STAT. 5107]]
(2) inserting ``of such Act'' after ``section 407(d)(2)''.
(d) Amendments Related to Section 624.--Section 404(c)(5) of
ERISA <<NOTE: 29 USC 1104.>> 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 <<NOTE: 29 USC 1053.>> 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 <<NOTE: 29 USC 1054.>> 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 <<NOTE: 26 USC
411.>> 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 <<NOTE: 26 USC 411
note.>> is amended by striking ``204(g)'' and inserting
``205(g)''.
[[Page 122 STAT. 5108]]
(2) Section 701(e) of the 2006 Act <<NOTE: 26 USC 411.>> 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) <<NOTE: Applicability.>> 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 <<NOTE: 26 USC 404.>> 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) <<NOTE: Applicability.>> 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.
[[Page 122 STAT. 5109]]
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, <<NOTE: 26 USC 408A.>> 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 <<NOTE: 26 USC 72.>> is amended by
inserting ``on or'' before ``before''.
(f) Amendments Related to Section 829.--
(1) Section 402(c)(11) of the 1986 Code <<NOTE: 26 USC
402.>> 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) <<NOTE: Effective date. 26 USC 402 note.>> 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 <<NOTE: 26 USC 415.>> 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
[[Page 122 STAT. 5110]]
(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 <<NOTE: 26 USC
420.>> 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 <<NOTE: 26 USC
4980.>> 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 <<NOTE: 26 USC 402.>> 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 <<NOTE: 26 USC
3121.>> is amended by striking ``or special trial judge''.
(2) Section 210(a)(5)(E) of the Social Security
Act <<NOTE: 42 USC 410.>> is amended by striking ``or special
trial judge''.
(l) Amendments <<NOTE: Applicability.>> Related to Section 856.--
Section 856 of the 2006 Act, <<NOTE: 26 USC 7443B and note.>> 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 <<NOTE: 26 USC 3401 note.>> is amended by striking
``Reconciliation''.
[[Page 122 STAT. 5111]]
SEC. 109. AMENDMENTS RELATED TO TITLE IX.
(a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of
the 1986 Code <<NOTE: 26 USC 401.>> 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 <<NOTE: 26
USC 411.>> 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 <<NOTE: 26 USC
402.>> is amended by inserting ``through the end of such taxable
year'' after ``such amount''.
(4) Section 414(w)(3) of the 1986 Code <<NOTE: 26 USC
414.>> 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 <<NOTE: 29
USC 1060.>> is amended--
(A) by adding at the end of paragraph (1) the
following new sentence: ``In the case of a termination
of the defined
[[Page 122 STAT. 5112]]
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 <<NOTE: 26 USC
415.>> is amended by striking ``paragraph (1)'' and inserting
``paragraph (10)''.
(2) Section 4021(b) of ERISA <<NOTE: 29 USC 1321.>> 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) <<NOTE: 45 USC 231m note.>> 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) <<NOTE: 45 USC 231d note.>> Subsection (a)(2).--The
amendment made by subsection (a)(2) shall take effect upon the
date of the enactment of this Act.
[[Page 122 STAT. 5113]]
SEC. 111. AMENDMENTS RELATED TO TITLE XI.
(a) Amendment Related to Section 1104.--Section 1104(d)(1) of the
2006 Act <<NOTE: 26 USC 457 note.>> 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 <<NOTE: 26 USC 3304.>> 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 <<NOTE: 29 USC 1002.>> 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. <<NOTE: 26 USC 72 note.>> 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 <<NOTE: 29 USC 1083.>> 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 <<NOTE: 26 USC 430.>> 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
[[Page 122 STAT. 5114]]
but not in excess of the third segment rate applicable under subsection
(h)(2)(C)(iii)), as specified by the Secretary.''.
(c) <<NOTE: 26 USC 430 note.>> 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 <<NOTE: 26 USC 415.>> (relating to limitation on certain
assumptions) is amended by adding at the end the following new clause:
``(vi) <<NOTE: Applicability.>> 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) <<NOTE: 26 USC 415 note.>> 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.-- <<NOTE: Applicability.>> 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 <<NOTE: 29 USC 623 note.>> 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 <<NOTE: 26 USC
105.>> (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
[[Page 122 STAT. 5115]]
``(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 <<NOTE: 26 USC 105 note.>> 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. <<NOTE: 26 USC 408A note.>> ROLLOVER OF AMOUNTS RECEIVED
IN AIRLINE CARRIER BANKRUPTCY TO ROTH
IRAS.
(a) General Rule.--If <<NOTE: Deadlines.>> 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
[[Page 122 STAT. 5116]]
(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 <<NOTE: 26 USC
430.>> 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 <<NOTE: 26 USC 430 note.>> 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 <<NOTE: 26 USC
6698.>> is amended by striking ``$85'' and inserting ``$89''.
(b) Effective <<NOTE: 26 USC 6698 note.>> 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 <<NOTE: 26 USC
6699.>> is amended by striking ``$85'' and inserting ``$89''.
(b) Effective <<NOTE: 26 USC 6699 note.>> 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 <<NOTE: 26 USC 401.>> (relating to required distributions) is
amended by adding at the end the following new subparagraph:
``(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--
[[Page 122 STAT. 5117]]
``(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 <<NOTE: 26 USC 402.>> (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 <<NOTE: 26 USC 401 note.>> 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
[[Page 122 STAT. 5118]]
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 <<NOTE: 26 USC 430.>> 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 <<NOTE: 26 USC 430 note.>> 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. <<NOTE: 26 USC 436 note.>> TEMPORARY MODIFICATION OF
APPLICATION OF LIMITATION ON BENEFIT
ACCRUALS.
In <<NOTE: Time period.>> 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. <<NOTE: 26 USC 432 note.>> 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) <<NOTE: Time period.>> 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 <<NOTE: Certification.>> 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)
[[Page 122 STAT. 5119]]
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) <<NOTE: Deadline.>> 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) <<NOTE: Deadlines.>> 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
[[Page 122 STAT. 5120]]
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. <<NOTE: 26 USC 432 note.>> 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--
(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.
Approved December 23, 2008.
LEGISLATIVE HISTORY--H.R. 7327:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 154 (2008):
Dec. 10, considered and passed House.
Dec. 11, considered and passed Senate.
<all>