H.R. 3361House110th Congress (2007-2009)Passed House

Pension Protection Technical Corrections Act of 2008

Legislative Activity

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SenateCalendars Latest Action

Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 621.

March 31, 2008

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HouseIntro Referral

Introduced in House

August 3, 2007

HouseIntro Referral

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Ways and Means Committee

August 3, 2007

HouseCommittee

Referred to the Subcommittee on Health, Employment, Labor, and Pensions.

Health, Employment, Labor, and Pensions Subcommittee

September 19, 2007

HouseFloor

Mr. Pomeroy moved to suspend the rules and pass the bill, as amended.

March 12, 2008 • 8:35 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H1598-1606)

March 12, 2008 • 8:36 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 3361.

March 12, 2008 • 8:36 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H1598-1604)

March 12, 2008 • 8:49 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1598-1604)

March 12, 2008 • 8:49 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

March 12, 2008 • 8:49 PM

HouseFloor

Mr. Stark asked unanimous consent that H.R. 3361 be engrossed in the form submitted to the desk. Agreed to without objection.

March 13, 2008 • 5:59 PM

SenateCalendars

Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 621.

March 31, 2008

Floor Debate

4 members

What members said about H.R. 3361 on the floor

2 Republicans2 Democrats

Rep. Earl PomeroyD-ND · Mar 12, 2008

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3361) to make technical corrections related to the Pension Protection Act of 2006, as amended. Mr. Speaker, I yield myself such time…

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3361) to make technical corrections related to the Pension Protection Act of 2006, as amended.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today I rise in favor of moving the Pension Technical Corrections Act of 2008 forward in an expedited manner. The bill is most needed by employers who are committed to providing their employees with a financially secure retirement through a defined benefit plan.

Why do we need this bill? Why do we need to act this quickly? Let me just break it down for you.

On August 17, 2006, the President signed into law the Pension Protection Act. This bill imposed sweeping reform affecting how employers fund their defined benefits plans maintained for their employees. In addition, the bill imposed significant reforms for pension plans offered to many union workers who participated in multi- employer plans.

However, many provisions in the PPA became effective on January 1 of this year. The Treasury Department and the Internal Revenue Service cannot implement many of these provisions because they need further clarification of congressional intent. This bill provides the needed clarification for the Treasury Department, Internal Revenue Service, corporations and other businesses who sponsor retirement plans, as well as working families who contribute to and benefit from 401(k) plans or defined contribution plans.

For the employers who have weathered the storm and are persistently committed to providing a secured retirement for their workers, this bill is for you. For the beneficiary of a 401(k) plan who wants to keep money in a retirement plan savings vehicle to finance retirement rather than being forced to spend it currently, this bill is for you. This bill provides clarification for the correct application of the non- spousal rollover provision.

For the construction worker whose plan may be experiencing underfunding and could be subject to a benefit reduction, this bill will make it clear when the plan must provide you with the notice alerting you of the plan's funding status. It would also clarify whether you are subject to such a reduction in pension benefits.

You see, Mr. Speaker, we are talking about quality-of-life issues for working families and about helping those employers who want to help their employees provide for a financially secure retirement.

I encourage my colleagues in this body and in the Senate to keep this bill clean and move it quickly. I encourage them to join me in doing what we were sent here by our constituents to do, provide legislation to help improve their lives. Let's pass this bill and get it to the President before the end of the month, because people are waiting. We have kept them waiting long enough.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

As we have just made formally a matter of record, the Pension Protection Act was an imperfect piece of legislation. This technically corrects, not substantively changes, but technically corrects an imperfect bill. It should go forward.

We should be doing more, Mr. Speaker, and this is where I want to spend the balance of my time tonight. I am almost shaking with anger at what we are not doing to correct the Pension Protection Act before it will have a very negative impact on the very working people that we talk so much about trying to help. I will give you a couple of examples.

There is a provision in the bill, never discussed, that inadvertently changes funding requirements for public pension plans. A plan like the State of North Dakota offers for its employees has a rate of 7.5 percent. Well, the Pension Protection Act in its present form requires them to credit interest at no greater than market rate. Without correction, we are going to have State legislatures reducing the interest credited for their public employees under fully funded public plans. It makes no sense. It needs fixing. It is a mistake. But we can't get the critical people in the critical committees to agree to fixing this.

Let's make no mistake about who we are talking about. We are talking about the Education and Labor Committee and we are talking about the Ways and Means Committee. Those are the committees of jurisdiction. We have not been able to get critical an agreement between the leadership of those committees and ranking members on fixing this public provision. And, as a result, for no reason whatsoever, other than an act of Congress that wasn't meant to have this impact, people may have their pensions reduced by Federal requirement.

I want those workers to know, Congress didn't mean to do this. But Congress knows that that is the effect of the law we passed, and this is a Congress that can't fix it in a timely fashion because we haven't had the will, we haven't had the time to think about it. We don't care enough. Because of the inattention of this body, if workers are forced to take lower credited interest in these public plans, these workers get less of a pension, and for no reason whatsoever.

There is another provision we should be fixing. These provisions are a little more than technical, so maybe should have been another bill, maybe not under the technical corrections act, but a bill we could have brought like tonight under the suspension calendar, a bill to address funding in a reasonable way.

You know, a pension is paid over many, many years. Yet the funding balance is determined by things that capture where the stock market is today, what the interest rate is today. Now, that can give you a pretty dire picture if you have got a stock market that is tanking and a low interest rate environment. It may look suddenly like forevermore the plan isn't going to earn much money on its assets.

Now, we know that the interest rate is going to change and we know the stock market valuation is going to change. So if you project 30 years based on today's picture, you are going to be coming up with a wrong number. There is something called asset smoothing that lets you basically average a bit so that a bad picture today doesn't mean a draconian funding requirement upon the employer to meet what looks like a funding requirement that is not in fact reality.

Now, some might think, well, gosh, if the employer has to put in more money than is really needed that just is a good thing for workers because that means there will be a lot of money in there, and in no way will that solve it. There is a hitch to this. Employers do not have to fund pension plans. Employers can freeze pension plans. They can get out of the pension business. In fact, my friends, 43 pensions have frozen since we passed the Pension Protection Act.

I will yield for a minute.

Reclaiming my time, I am not putting this responsibility on the minority.

What the gentleman has alleged, I am not currently informed of. I don't dispute it, but I don't know it, but I do know that others that were needed to address this issue, others on the majority side did not act.

In the end, the majority has responsibility for what we bring in a suspension calendar like this. This majority didn't get the job done.

Reclaiming my time, I welcome that, because when the Pension Protection Act passed in the last Congress when the minority was the majority, I did not find that willingness to work with me. The legislation, I believe, needed correcting. This is a pox on both parties.

Reclaiming my time before I run out of time, this is a pox on both parties. Both parties passed it, and both parties have failed to fix it.

I believe the failure, relative to getting this fixed, is on both parties. But the majority party carries a disproportionate burden because we are the majority party.

I could not be more disappointed.

Getting back to the point I was making about frozen plans, I believe plans will freeze and workers will lose their pensions because asset smoothing is not addressed on the suspension calendar before we go out, before this critical April 15 deadline for pension funding.

This is completely unacceptable. It's incompetent, and I am ashamed of this House in failing to address this before we leave. I hope that I have made some people angry by these comments. I have intended to.

We need to get after this, and we need to get after it when we are back. If we don't get after it, I assure you, I will be having more of these speeches, because those who pretend to protect the world, the world's workers, when what they are doing is protecting these workers out of their very pensions, the very thing they need for retirement, income security. They are not doing anybody any favors. The games have got to end. The posture has got to end. We have got to fix problems and fix them in a timely way and shame on us if we have fallen short.

Let me get back to the bill before us, because it's important. The bill before us is a technical corrections act. This one needs to pass. This is fine.

The problem is, there is so much more that needed to be done, that could have been done on a suspension calendar tonight and tomorrow. We didn't do it, and we need to do it in short order when we get back.

Mr. Speaker, I yield back the balance of my time.

Rep. Howard P. "Buck" McKeonR-CA-25 · Mar 12, 2008

Mr. Speaker, I rise in support of H.R. 3361, the Pension Protection Technical Corrections Act of 2008, and I urge all of my colleagues to support this measure. Mr. Speaker, in 2006, the…

Mr. Speaker, I rise in support of H.R. 3361, the Pension Protection Technical Corrections Act of 2008, and I urge all of my colleagues to support this measure.

Mr. Speaker, in 2006, the Republican-led Congress passed, and President Bush signed into law, the Pension Protection Act of 2006, which represented the most comprehensive reform of our Nation's private pension system in a generation. After years of thorough examination, thoughtful legislative development, and careful coalition-building, we finally restored common sense to our Nation's pension system through enactment of this landmark law. Thanks to those reforms, today's retirement security laws match the new realities of the 21st century economy, meaning that more U.S. workers will be able to count on their retirement savings being there for them when they need it.

The Pension Protection Act included tough new funding requirements to ensure employers adequately and consistently fund their

pension plans, provided workers with meaningful disclosure about the financial status of their benefits, and protected taxpayers from a possible multi-billion dollar bailout of the Pension Benefit Guaranty Corporation (PBGC).

The Pension Protection Act's reforms were built on six fundamental principles that helped ensure a stronger, more secure retirement for millions of American workers. Those principles were: certainty, with a permanent and more accurate calculation of employers' pension liabilities; common sense, which enabled employers to build up a cushion in their pension plans during good economic times; stability, achieved by closing funding loopholes and ensuring employers make adequate and consistent cash payments to their plans; transparency through timely and straightforward information given to employees about the health of their retirement plans; honesty from employers and union leaders, who are no longer permitted to make hollow promises of extra benefits that will never materialize because a plan is severely underfunded; and portability, established by ensuring that hybrid plans, such as cash balance pensions--which offer portable, more generous worker benefits--remain a viable part of the defined benefit system. Having served as the Chairman of the House Committee on Education and the Workforce during this process, I am pleased to have been part of this effort.

Of course, it is to be expected that in legislation of that magnitude, we did not get every word perfect, or every provision as clear as it could be. That is the point of the bill before us today-- H.R. 3361 is a narrow, technical bill that corrects inadvertent errors in drafting contained in the original law, and provides necessary clarification and focus, to ensure that the law is administered as Congress intended. For that reason, I support the bill before us today, and hope that it will quickly be enacted into law.

I must note for the record, however, that more remains to be done. The bill before us is very narrow in scope, and addresses only those issues that are considered purely technical on a consensus basis. There are other issues that remain to be addressed.

For example, late last year, the Senate passed by unanimous consent its own version of a technical corrections bill, which included critical clarifications with respect to the issue of asset smoothing. I would hope that this issue is addressed in any final technical correction package that we consider.

Also, there are numerous provisions which Members and staff have discussed since enactment of the 2006 law, which enjoy broad, bipartisan support, but which did not fall within the scope of this narrow package of technical corrections. Going forward, it will be necessary for us to address these items, and I stand ready to work with my Chairman, Mr. Miller, and the distinguished Chairman and Ranking Member of the Ways and Means Committee in doing so.

Mr. Speaker, with that, I reiterate my support for this narrow legislation.

Rep. Paul D. RyanR-WI-1 · Mar 12, 2008

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 3361, the Pension Protection Technical Corrections Act. Given the complexity and broad reach of the Tax…

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 3361, the Pension Protection Technical Corrections Act. Given the complexity and broad reach of the Tax Code and ERISA, and the difficult interactions between them, the measure before us is necessary to correct drafting and other errors in the Pension Protection Act of 2006.

Passage of the legislation will give certainty to plan administrators, individuals, as well as government regulators and ensure the intent of Congress is fully reflected in the governing statutes.

The technical corrections process is a complicated one which ensures all views are heard and which brings in experts from the relevant committees and Federal agencies.

In this case, it means that bipartisan staff from both the Ways & Means Committee and the Education & Labor Committee were joined by their counterparts from the Senate Finance Committee and the Senate HELP Committee as well as representatives from the Treasury and Labor Departments and the Pension Benefit Guaranty Corporation.

Led by the staff of the Joint Tax Committee, the technical corrections process gives all participants a chance to review proposed changes to ensure they reflect the intent of Congress and do not change the substance of the law itself.

There can be disagreements about what should and should not be considered technical. Each participant in the process has a veto. Thus, only items that were unanimously viewed as correcting a drafting mistake are included in the measure being debated today.

There is one item, called smoothing, that we viewed as a particularly important technical correction but is not included in this bill because one of the parties to the process said it was not technical. Regardless of whether smoothing is technical, it is extremely important and must be passed quickly. Given that smoothing was excluded from this bill, I urge that we take up a smoothing-only bill on suspension this week.

It is my understanding that the Joint Tax Committee will be publishing on their web page a complete summary of these items, and I encourage interested individuals to review it.

Two final observations, Mr. Speaker, on the differences between this bill and the version passed by the Senate in December.

First, since the Senate bill was passed, several additional technical items were identified, reviewed by the participants, and agreed to as being technical and conforming changes.

Second, the Senate-passed bill included smoothing and a second provision that is no longer relevant.

I hope that the Senate takes up the bill that we are passing today so that it can go to the President and be signed into law. I also hope that both houses quickly pass a smoothing-only bill.

Mr. Speaker, while hardly glamorous, the technical corrections process is an important one, providing clarity and certainty to plan administrators and the millions of Americans who rely on these plans to help provide a secure retirement.

I support passage of the bill.

Mr. Speaker, I yield back the balance of my time.

Will the gentleman yield for a minute?

Just to be clear, it's my understanding that the minority side agrees with fixing the public pension problem along with the smoothing problem and consented to putting both of those in the bill, but the majority had rejected that offer.

If the gentleman would further yield, I would simply like to say that we in the minority are more than willing to work with the gentleman in the majority to include the smoothing in the public pension provision.

Just one more friendly view. If you recall, this was a bipartisan bill when this passed when we were in the majority.

Rep. Fortney Pete StarkD-CA-13 · Mar 13, 2008

Madam Speaker, I ask unanimous consent that the Clerk be authorized to engross the bill, H.R. 3361, in the form of the bill that I have placed at the desk.

Rep. Earl PomeroyD-ND · Mar 12, 2008

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks on H.R. 3361.

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Placed on Calendar SenateIssued March 31, 2008

        [Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 3361 Placed on Calendar Senate (PCS)]

Calendar No. 621
110th CONGRESS
2d Session
H. R. 3361

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 31 (legislative day, March 13), 2008

Received; read twice and placed on the calendar

_______________________________________________________________________

AN ACT

To make technical corrections related to the Pension Protection Act of
2006.

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

SECTION 1. SHORT TITLE; REFERENCES TO ACTS.

(a) In General.--This Act may be cited as the ``Pension Protection
Technical Corrections Act of 2008''.
(b) References to Acts.--For purposes of this Act:
(1) Amendment of 1986 code.--The term ``1986 Code'' means
the Internal Revenue Code of 1986.
(2) Amendment of erisa.--The term ``ERISA'' means the
Employee Retirement Income Security Act of 1974.
(3) 2006 act.--The term ``2006 Act'' means the Pension
Protection Act of 2006.

SEC. 2. AMENDMENTS RELATED TO TITLE I.

(a) Amendments Related to Sections 101 and 111.--
(1) Amendments to erisa.--
(A) Clause (i) of section 302(c)(1)(A) of ERISA is
amended by striking ``the plan is'' and inserting ``the
plan are''.
(B) Section 302(c)(7) of ERISA is amended by
inserting ``which reduces the accrued benefit of any
participant'' after ``subsection (d)(2)'' in
subparagraph (A).
(C) Section 302(d)(1) of ERISA is amended by
striking ``, the valuation date,''.
(2) Amendments to 1986 code.--
(A) Clause (i) of section 412(c)(1)(A) of the 1986
Code is amended by striking ``the plan is'' and
inserting ``the plan are''.
(B) Section 412(c)(7) of the 1986 Code is amended
by inserting ``which reduces the accrued benefit of any
participant'' after ``subsection (d)(2)'' in
subparagraph (A).
(C) Section 412(d)(1) of the 1986 Code is amended
by striking ``, the valuation date,''.
(b) Amendments Related to Sections 102 and 112.--
(1) Amendments to erisa.--
(A) Section 303(b) of ERISA is amended to read as
follows:
``(b) Target Normal Cost.--For purposes of this section:
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits
which are expected to accrue or to be earned
under the plan during the plan year, plus
``(ii) the amount of plan-related expenses
expected to be paid from plan assets during the
plan year, over
``(B) the amount of mandatory employee
contributions expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current plan
year, the increase in such benefit shall be treated as having
accrued during the current plan year.''.
(B) Section 303(c)(5)(B)(iii) of ERISA is amended
by inserting ``beginning'' before ``after 2008''.
(C) Section 303(c)(5)(B)(iv)(II) of ERISA is
amended by inserting ``for such year'' after
``beginning in 2007)''.
(D) Section 303(f)(4)(A) of ERISA is amended by
striking ``paragraph (2)'' and inserting ``paragraph
(3)''.
(E) Section 303(h)(2)(F) of ERISA is amended--
(i) by striking ``section
205(g)(3)(B)(iii)(I)) for such month'' and
inserting ``section 205(g)(3)(B)(iii)(I) for
such month)'', and
(ii) by striking ``subparagraph (B)'' and
inserting ``subparagraph (C)''.
(F) Section 303(i) of ERISA is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A)
and inserting the following new
subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all
benefits which are expected to accrue
or to be earned under the plan during
the plan year, determined using the
additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related
expenses expected to be paid from plan
assets during the plan year, over
``(ii) the amount of mandatory employee
contributions expected to be made during the
plan year, plus'', and
(II) in subparagraph (B), by
striking ``the target normal cost
(determined without regard to this
paragraph) of the plan for the plan
year'' and inserting ``the amount
determined under subsection
(b)(1)(A)(i) with respect to the plan
for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)''
in the last sentence of paragraph (4)(B) and
inserting ``subparagraph (A)''.
(G) Section 303(j)(3) of ERISA--
(i) is amended by adding at the end of
subparagraph (A) the following new sentence:
``In the case of plan years beginning in 2008,
the funding shortfall for the preceding plan
year may be determined using such methods of
estimation as the Secretary of the Treasury may
provide.'',
(ii) by adding at the end of subparagraph
(E) the following new clause:
``(iii) Plan with alternate valuation
date.--The Secretary of the Treasury shall
prescribe regulations for the application of
this paragraph in the case of a plan which has
a valuation date other than the first day of
the plan year.'', and
(iii) by striking ``and short years'' in
the heading of subparagraph (E) and inserting
``, short years, and years with alternate
valuation date''.
(H) Section 303(k)(6)(B) of ERISA is amended by
striking ``, except'' and all that follows and
inserting a period.
(2) Amendments to 1986 code.--
(A) Section 430(b) of the 1986 Code is amended to
read as follows:
``(b) Target Normal Cost.--For purposes of this section:
``(1) In general.--Except as provided in subsection (i)(2)
with respect to plans in at-risk status, the term `target
normal cost' means, for any plan year, the excess of--
``(A) the sum of--
``(i) the present value of all benefits
which are expected to accrue or to be earned
under the plan during the plan year, plus
``(ii) the amount of plan-related expenses
expected to be paid from plan assets during the
plan year, over
``(B) the amount of mandatory employee
contributions expected to be made during the plan year.
``(2) Special rule for increase in compensation.--For
purposes of this subsection, if any benefit attributable to
services performed in a preceding plan year is increased by
reason of any increase in compensation during the current plan
year, the increase in such benefit shall be treated as having
accrued during the current plan year.''.
(B) Section 430(c)(5)(B)(iii) of the 1986 Code is
amended by inserting ``beginning'' before ``after
2008''.
(C) Section 430(c)(5)(B)(iv)(II) of the 1986 Code
is amended by inserting ``for such year'' after
``beginning in 2007)''.
(D) Section 430(f) of the 1986 Code is amended--
(i) by striking ``as of the first day of
the plan year'' the second place it appears in
the first sentence of paragraph (3)(A),
(ii) by striking ``paragraph (2)'' in
paragraph (4)(A) and inserting ``paragraph
(3)'',
(iii) by striking ``paragraph (1), (2), or
(4) of section 206(g)'' in paragraph
(6)(B)(iii) and inserting ``subsection (b),
(c), or (e) of section 436'',
(iv) by striking ``the sum of'' in
paragraph (6)(C), and
(v) by striking ``of the Treasury'' in
paragraph (8).
(E) Section 430(h)(2) of the 1986 Code is amended--
(i) by inserting ``and target normal cost''
after ``funding target'' in subparagraph (B),
(ii) by striking ``liabilities'' and
inserting ``benefits'' in subparagraph (B),
(iii) by striking ``section
417(e)(3)(D)(i)) for such month'' in
subparagraph (F) and inserting ``section
417(e)(3)(D)(i) for such month)'', and
(iv) by striking ``subparagraph (B)'' in
subparagraph (F) and inserting ``subparagraph
(C)''.
(F) Section 430(i) of the 1986 Code is amended--
(i) in paragraph (2)--
(I) by striking subparagraph (A)
and inserting the following new
subparagraph:
``(A) the excess of--
``(i) the sum of--
``(I) the present value of all
benefits which are expected to accrue
or to be earned under the plan during
the plan year, determined using the
additional actuarial assumptions
described in paragraph (1)(B), plus
``(II) the amount of plan-related
expenses expected to be paid from plan
assets during the plan year, over
``(ii) the amount of mandatory employee
contributions expected to be made during the
plan year, plus'', and
(II) in subparagraph (B), by
striking ``the target normal cost
(determined without regard to this
paragraph) of the plan for the plan
year'' and inserting ``the amount
determined under subsection
(b)(1)(A)(i) with respect to the plan
for the plan year'', and
(ii) by striking ``subparagraph (A)(ii)''
in the last sentence of paragraph (4)(B) and
inserting ``subparagraph (A)''.
(G) Section 430(j)(3) of the 1986 Code is amended--
(i) by adding at the end of subparagraph
(A) the following new sentence: ``In the case
of plan years beginning in 2008, the funding
shortfall for the preceding plan year may be
determined using such methods of estimation as
the Secretary may provide.'',
(ii) by striking ``section 302(c)'' in
subparagraph (D)(ii)(II) and inserting
``section 412(c)'',
(iii) by adding at the end of subparagraph
(E) the following new clause:
``(iii) Plan with alternate valuation
date.--The Secretary shall prescribe
regulations for the application of this
paragraph in the case of a plan which has a
valuation date other than the first day of the
plan year.'', and
(iv) by striking ``and short years'' in the
heading of subparagraph (E) and inserting ``,
short years, and years with alternate valuation
date''.
(H) Section 430(k) of the 1986 Code is amended--
(i) by inserting ``(as provided under
paragraph (2))'' after ``applies'' in paragraph
(1), and
(ii) by striking ``, except'' and all that
follows in paragraph (6)(B) and inserting a
period.
(c) Amendments Related to Sections 103 and 113.--
(1) Amendments to erisa.--
(A) Section 101(j) of ERISA is amended--
(i) in paragraph (2), by striking ``section
206(g)(4)(B)'' and inserting ``section
206(g)(4)(A)''; and
(ii) by adding at the end the following:
``The Secretary of the Treasury, in
consultation with the Secretary, shall have the
authority to prescribe rules applicable to the
notices required under this subsection.''.
(B) Section 206(g)(1)(B)(ii) of ERISA is amended by
striking ``a funding'' and inserting ``an adjusted
funding''.
(C) The heading for section 206(g)(1)(C) of ERISA
is amended by inserting ``benefit'' after ``event''.
(D) Section 206(g)(3)(E) of ERISA is amended by
adding at the end the following new flush sentence:
``Such term shall not include the payment of a benefit
which under section 203(e) may be immediately
distributed without the consent of the participant.''.
(E) Section 206(g)(5)(A)(iv) of ERISA is amended by
inserting ``adjusted'' before ``funding''.
(F) Section 206(g)(9)(C) of ERISA is amended--
(i) by striking ``without regard to this
subparagraph and'' in clause (i), and
(ii) in clause (iii)--
(I) by striking ``without regard to
this subparagraph'' and inserting
``without regard to the reduction in
the value of assets under section
303(f)(4)'', and
(II) by inserting ``beginning''
before ``after'' each place it appears.
(G) Section 206(g) of ERISA is amended by
redesignating paragraph (10) as paragraph (11) and by
inserting after paragraph (9) the following new
paragraph:
``(10) Secretarial authority for plans with alternate
valuation date.--In the case of a plan which has designated a
valuation date other than the first day of the plan year, the
Secretary of the Treasury may prescribe rules for the
application of this subsection which are necessary to reflect
the alternate valuation date.''.
(H) Section 502(c)(4) of ERISA is amended by
striking ``by any person'' and all that follows through
the period and inserting ``by any person of subsection
(j), (k), or (l) of section 101 or section
514(e)(3).''.
(2) Amendments to 1986 code.--
(A) Section 436(b)(2) of the 1986 Code is amended--
(i) by striking ``section 303'' and
inserting ``section 430'' in the matter
preceding subparagraph (A), and
(ii) by striking ``a funding'' and
inserting ``an adjusted funding'' in
subparagraph (B).
(B) Section 436(b)(3) of the 1986 Code is amended--
(i) by inserting ``benefit'' after
``event'' in the heading, and
(ii) by striking ``any event'' in
subparagraph (B) and inserting ``an event''.
(C) Section 436(d)(5) of the 1986 Code is amended
by adding at the end the following new flush sentence:
``Such term shall not include the payment of a benefit which
under section 411(a)(11) may be immediately distributed without
the consent of the participant.''.
(D) Section 436(f) of the 1986 Code is amended--
(i) by inserting ``adjusted'' before
``funding'' in paragraph (1)(D), and
(ii) by striking ``prefunding balance under
section 430(f) or funding standard carryover
balance'' in paragraph (2) and inserting
``prefunding balance or funding standard
carryover balance under section 430(f)''.
(E) Section 436(j)(3) of the 1986 Code is amended--
(i) in subparagraph (A)--
(I) by striking ``without regard to
this paragraph and'',
(II) by striking ``section
430(f)(4)(A)'' and inserting ``section
430(f)(4)'', and
(III) by striking ``paragraph (1)''
and inserting ``paragraphs (1) and
(2)'', and
(ii) in subparagraph (C)--
(I) by striking ``without regard to
this paragraph'' and inserting
``without regard to the reduction in
the value of assets under section
430(f)(4)'', and
(II) by inserting ``beginning''
before ``after'' each place it appears.
(F) Section 436 of the 1986 Code is amended by
redesignating subsection (k) as subsection (m) and by
inserting after subsection (j) the following new
subsections:
``(k) Secretarial Authority for Plans With Alternate Valuation
Date.--In the case of a plan which has designated a valuation date
other than the first day of the plan year, the Secretary may prescribe
rules for the application of this section which are necessary to
reflect the alternate valuation date.
``(l) Single-Employer Plan.--For purposes of this section, the term
`single-employer plan' means a plan which is not a multiemployer
plan.''.
(3) Amendments to 2006 act.--Sections 103(c)(2)(A)(ii) and
113(b)(2)(A)(ii) of the 2006 Act are each amended--
(A) by striking ``subsection'' and inserting
``section'', and
(B) by striking ``subparagraph'' and inserting
``paragraph''.
(d) Amendments Related to Sections 107 and 114.--
(1) Amendments to erisa.--
(A) Section 103(d) of ERISA is amended--
(i) in paragraph (3), by striking ``the
normal costs, the accrued liabilities'' and
inserting ``the normal costs or target normal
costs, the accrued liabilities or funding
target'', and
(ii) by striking paragraph (7) and
inserting the following new paragraph:
``(7) A certification of the contribution necessary to
reduce the minimum required contribution determined under
section 303, or the accumulated funding deficiency determined
under section 304, to zero.''.
(B) Section 4071 of ERISA is amended by striking
``as section 303(k)(4) or 307(e)'' and inserting ``or
section 303(k)(4),''.
(2) Amendments to 1986 code.--
(A) Section 401(a)(29) of the 1986 Code is amended
by striking ``on plans in at-risk status'' in the
heading.
(B) Section 401(a)(32)(C) of the 1986 Code is
amended--
(i) by striking ``section 430(j)'' and
inserting ``section 430(j)(3)'', and
(ii) by striking ``paragraph (5)(A)'' and
inserting ``section 430(j)(4)(A)''.
(C) Section 401(a)(33) of the 1986 Code is
amended--
(i) by striking ``section 412(c)(2)'' in
subparagraph (B)(iii) and inserting ``section
412(d)(2)'', and
(ii) by striking ``section 412(b)(2)
(without regard to subparagraph (B) thereof)''
in subparagraph (D) and inserting ``section
412(b)(1), without regard to section
412(b)(2)''.
(D) Section 411 of the 1986 Code is amended--
(i) by striking ``section 412(c)(2)'' in
subsection (a)(3)(C) and inserting ``section
412(d)(2)'', and
(ii) by striking ``section 412(e)(2)'' in
subsection (d)(6)(A) and inserting ``section
412(d)(2)''.
(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is
amended to read as follows:
``(I) the sum of the funding target
and target normal cost determined under
section 430, over''.
(F) Section 4971 of the 1986 Code is amended--
(i) by striking ``required minimum'' in
subsection (b)(1) and inserting ``minimum
required'',
(ii) by inserting ``or unpaid minimum
required contribution, whichever is
applicable'' after ``accumulated funding
deficiency'' each place it appears in
subsections (c)(3) and (d)(1), and
(iii) by striking ``section 412(a)(1)(A)''
in subsection (e)(1) and inserting ``section
412(a)(2)''.
(3) Amendment to 2006 act.--Section 114 of the 2006 Act is
amended by adding at the end the following new subsection:
``(g) Effective Dates.--
``(1) In general.--The amendments made by this section
shall apply to plan years beginning after 2007.
``(2) Excise tax.--The amendments made by subsection (e)
shall apply to taxable years beginning after 2007, but only
with respect to plan years described in paragraph (1) which end
with or within any such taxable year.''.
(e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of
the 1986 Code is amended by inserting ``to an applicable covered
employee'' after ``under the plan''.

SEC. 3. AMENDMENTS RELATED TO TITLE II.

(a) Amendment Related to Sections 201 and 211.--Section
201(b)(2)(A) of the 2006 Act is amended by striking ``has not used''
and inserting ``has not adopted, or ceased using,''.
(b) Amendments Related to Sections 202 and 212.--
(1) Amendments to erisa.--
(A) Section 302(b)(3) of ERISA is amended by
striking ``the plan adopts'' and inserting ``the plan
sponsor adopts''.
(B) Section 305(b)(3)(C) of ERISA is amended by
striking ``section 101(b)(4)'' and inserting ``section
101(b)(1)''.
(C) Section 305(b)(3)(D) of ERISA is amended by
striking ``The Secretary'' in clause (iii) and
inserting ``The Secretary of the Treasury, in
consultation with the Secretary''.
(D) Section 305(c)(7) of ERISA is amended--
(i) by striking ``to agree on'' and all
that follows in subparagraph (A)(ii) and
inserting ``to adopt a contribution schedule
with terms consistent with the funding
improvement plan and a schedule from the plan
sponsor,'', and
(ii) by striking subparagraph (B) and
inserting the following new subparagraph:
``(B) Date of implementation.--The date specified
in this subparagraph is the date which is 180 days
after the date on which the collective bargaining
agreement described in subparagraph (A) expires.'', and
(iii) by adding at the end the following
new subparagraph:
``(C) Failure to make scheduled contributions.--Any
failure to make a contribution under a schedule of
contribution rates provided under this paragraph shall
be treated as a delinquent contribution under section
515 and shall be enforceable as such.''.
(E) Section 305(e) of ERISA is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows
``to adopt a'' in clause (i)(II) and
inserting ``to adopt a contribution
schedule with terms consistent with the
rehabilitation plan and a schedule from
the plan sponsor under paragraph
(1)(B)(i),'',
(II) by striking clause (ii) and
inserting the following new clause:
``(ii) Date of implementation.--The date
specified in this clause is the date which is
180 days after the date on which the collective
bargaining agreement described in clause (i)
expires.'', and
(III) by adding at the end the
following new clause:
``(iii) Failure to make scheduled
contributions.--Any failure to make a
contribution under a schedule of contribution
rates provided under this subsection shall be
treated as a delinquent contribution under
section 515 and shall be enforceable as
such.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in
subparagraph (A)(ii), and
(II) by striking ``and taking'' in
subparagraph (B) and inserting ``but
taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph
(1)(B)(i)'' and inserting ``the last
sentence of paragraph (1)'', and
(II) by striking ``established''
and inserting ``establish'',
(iv) in paragraph (8)(C)(iii)--
(I) by striking ``the Secretary''
in subclause (I) and inserting ``the
Secretary of the Treasury, in
consultation with the Secretary'', and
(II) by striking ``Secretary'' in
the last sentence and inserting
``Secretary of the Treasury'', and
(v) by striking ``an employer's withdrawal
liability'' in paragraph (9)(B) and inserting
``the allocation of unfunded vested benefits to
an employer''.
(F) Section 305(f)(2)(A)(i) of ERISA is amended by
adding at the end the following: ``to a participant or
beneficiary whose annuity starting date (as defined in
section 205(h)(2)) occurs after the date such notice is
sent,''.
(G) Section 305(g) of ERISA is amended by inserting
``under subsection (c)'' after ``funding improvement
plan'' the first place it appears.
(H) Section 502(c)(2) of ERISA is amended by
striking ``101(b)(4)'' and inserting ``101(b)(1)''.
(I) Section 502(c)(8)(A) of ERISA is amended by
inserting ``plan'' after ``multiemployer''.
(2) Amendments to 1986 code.--
(A) Section 432(b)(3)(C) of the 1986 Code is
amended by striking ``section 101(b)(4)'' and inserting
``section 101(b)(1)''.
(B) Section 432(b)(3)(D)(iii) of the 1986 Code is
amended by striking ``The Secretary of Labor'' and
inserting ``The Secretary, in consultation with the
Secretary of Labor''.
(C) Section 432(c) of the 1986 Code is amended--
(i) in paragraph (3), by striking ``section
304(d)'' in subparagraph (A)(ii) and inserting
``section 431(d)'', and
(ii) in paragraph (7)--
(I) by striking ``to agree on'' and
all that follows in subparagraph
(A)(ii) and inserting ``to adopt a
contribution schedule with terms
consistent with the funding improvement
plan and a schedule from the plan
sponsor,'', and
(II) by striking subparagraph (B)
and inserting the following new
subparagraph:
``(B) Date of implementation.--The date specified
in this subparagraph is the date which is 180 days
after the date on which the collective bargaining
agreement described in subparagraph (A) expires.''.
(D) Section 432(e) of the 1986 Code is amended--
(i) in paragraph (3)(C)--
(I) by striking all that follows
``to adopt a'' in clause (i)(II) and
inserting ``to adopt a contribution
schedule with terms consistent with the
rehabilitation plan and a schedule from
the plan sponsor under paragraph
(1)(B)(i),'', and
(II) by striking clause (ii) and
inserting the following new clause:
``(ii) Date of implementation.--The date
specified in this clause is the date which is
180 days after the date on which the collective
bargaining agreement described in clause (i)
expires.'',
(ii) in paragraph (4)--
(I) by striking ``the date of'' in
subparagraph (A)(ii), and
(II) by striking ``and taking'' in
subparagraph (B) and inserting ``but
taking'',
(iii) in paragraph (6)--
(I) by striking ``paragraph
(1)(B)(i)'' and inserting ``the last
sentence of paragraph (1)'', and
(II) by striking ``established''
and inserting ``establish'',
(iv) in paragraph (8)--
(I) by striking ``section 204(g)''
in subparagraph (A)(i) and inserting
``section 411(d)(6)'',
(II) by inserting ``of the Employee
Retirement Income Security Act of
1974'' after ``4212(a)'' in
subparagraph (C)(i)(II),
(III) by striking ``the Secretary
of Labor'' in subparagraph (C)(iii)(I)
and inserting ``the Secretary, in
consultation with the Secretary of
Labor'', and
(IV) by striking ``the Secretary of
Labor'' in the last sentence of
subparagraph (C)(iii) and inserting
``the Secretary'', and
(v) by striking ``an employer's withdrawal
liability'' in paragraph (9)(B) and inserting
``the allocation of unfunded vested benefits to
an employer''.
(E) Section 432(f)(2)(A)(i) of the 1986 Code is
amended--
(i) by striking ``section 411(b)(1)(A)''
and inserting ``section 411(a)(9)''; and
(ii) by inserting at the end the following:
``to a participant or beneficiary whose annuity
starting date (as defined in section 417(f)(2))
occurs after the date such notice is sent,''.
(F) Section 432(g) of the 1986 Code is amended by
inserting ``under subsection (c)'' after ``funding
improvement plan'' the first place it appears.
(G) Section 432(i) of the 1986 Code is amended--
(i) by striking ``section 412(a)'' in
paragraph (3) and inserting ``section 431(a)'',
and
(ii) by striking paragraph (9) and
inserting the following new paragraph:
``(9) Plan sponsor.--For purposes of this section, section
431, and section 4971(g):
``(A) In general.--The term `plan sponsor' means,
with respect to any multiemployer plan, the
association, committee, joint board of trustees, or
other similar group of representatives of the parties
who establish or maintain the plan.
``(B) Special rule for section 404(c) plans.--In
the case of a plan described in section 404(c) (or a
continuation of such plan), such term means the
bargaining parties described in paragraph (1).''.
(H) Section 412(b)(3) of the 1986 Code is amended
by striking ``the plan adopts'' and inserting ``the
plan sponsor adopts''.
(I) Section 4971(g)(4) of the 1986 Code is
amended--
(i) in subparagraph (B)(ii), by striking
``first day of'' and inserting ``day following
the close of'', and
(ii) by striking clause (ii) of
subparagraph (C) and inserting the following
new clause:
``(ii) Plan sponsor.--For purposes of
clause (i), the term `plan sponsor' has the
meaning given such term by section
432(i)(9).''.
(3) Amendments to 2006 act.--
(A) Section 212(b)(2) of the 2006 Act is amended by
striking ``Section 4971(c)(2) of such Code'' and
inserting ``Section 4971(e)(2) of such Code''.
(B) Section 212(e)(1) of the 2006 Act is amended by
inserting ``, except that the amendments made by
subsection (b) shall apply to taxable years beginning
after 2007, but only with respect to plan years
beginning after 2007 which end with or within any such
taxable year'' before the period at the end.
(C) Section 212(e)(2) of the 2006 Act is amended by
striking ``section 305(b)(3) of the Employee Retirement
Income Security Act of 1974'' and inserting ``section
432(b)(3) of the Internal Revenue Code of 1986''.

SEC. 4. AMENDMENTS RELATED TO TITLE III.

(a) Amendment Related to Section 301.--Clause (ii) of section
101(c)(2)(A) of the Pension Funding Equity Act of 2004, as amended by
section 301(c) of the 2006 Act, is amended by striking ``2008'' and
inserting ``2009''.
(b) Amendments Related to Section 302.--
(1) Amendment to erisa.--Section 205(g)(3)(B)(iii)(II) of
ERISA is amended by striking ``section 205(g)(3)(B)(iii)(II)''
and inserting ``section 205(g)(3)(A)(ii)(II)''.
(2) Amendments to 1986 code.--
(A) Section 417(e)(3)(D)(i) of the 1986 Code is
amended by striking ``clause (ii)'' and inserting
``subparagraph (C)''.
(B)(i) Section 415(b)(2)(E)(v) of the 1986 Code is
amended to read as follows:
``(v) For purposes of adjusting any benefit
or limitation under subparagraph (B), (C), or
(D), the mortality table used shall be the
applicable mortality table (within the meaning
of section 417(e)(3)(B)).''.
(ii)(I) Except as provided in subclause (II), the
amendment made by clause (i) shall apply to years
beginning after December 31, 2008.
(II) A plan sponsor may elect to have the amendment
made by clause (i) apply to any year beginning after
December 31, 2007, and before January 1, 2009, or to
any portion of any such year.

SEC. 5. AMENDMENTS RELATED TO TITLE IV.

(a) Amendment Related to Section 401.--Section 4006(a)(3)(A)(i) of
ERISA is amended by striking ``1990'' and inserting ``2005''.
(b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the
2006 Act is amended by striking ``commercial airline'' and inserting
``commercial''.
(c) Amendment Related to Section 408.--Section 4044(e) of ERISA, as
added by section 408(b)(2) of the 2006 Act, is redesignated as
subsection (f).
(d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of
ERISA is amended by striking ``subparagraph (B)'' and inserting
``subparagraphs (B) and (D)''.
(e) Amendments Related to Section 410.--Section 4050(d)(4)(A) of
ERISA is amended--
(1) by striking ``and'' at the end of clause (i), and
(2) by striking clause (ii) and inserting the following new
clauses:
``(ii) which is not a plan described in
paragraph (2), (3), (4), (6), (7), (8), (9),
(10), or (11) of section 4021(b), and
``(iii) which, was a plan described in
section 401(a) of the Internal Revenue Code of
1986 which includes a trust exempt from tax
under section 501(a) of such Code, and''.

SEC. 6. AMENDMENTS RELATED TO TITLE V.

(a) Amendment Related to Section 501.--Section 101(f)(2)(B)(ii) of
ERISA is amended--
(1) by striking ``for which the latest annual report filed
under section 104(a) was filed'' in subclause (I)(aa) and
inserting ``to which the notice relates'', and
(2) by striking subclause (II) and inserting the following
new subclause:
``(II) in the case of a
multiemployer plan, a statement, for
the plan year to which the notice
relates and the preceding 2 plan years,
of the value of the plan assets
(determined both in the same manner as
under section 304 and under the rules
of subclause (I)(bb)) and the value of
the plan liabilities (determined in the
same manner as under section 304 except
that the method specified in section
305(i)(8) shall be used),''.
(b) Amendments Related to Section 502.--
(1) Section 101(k)(2) of ERISA is amended by filing at the
end the following new flush sentence:
``Subparagraph (C)(i) shall not apply to individually
identifiable information with respect to any plan investment
manager or adviser, or with respect to any other person (other
than an employee of the plan) preparing a financial report
required to be included under paragraph (1)(B).''.
(2) Section 4221 of ERISA is amended by striking subsection
(e) and by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(c) Amendments Related to Section 503.--
(1) Amendments to erisa.--
(A) Section 104(b)(3) of ERISA is amended by--
(i) striking ``section 103(f)'' and
inserting ``section 101(f)'', and
(ii) striking ``the administrators'' and
inserting ``the administrator''.
(B) Section 104(d)(1)(E)(ii) of ERISA is amended by
inserting ``funding'' after ``plan's''.
(2) Amendments to 2006 act.--Section 503(e) of the 2006 Act
is amended by striking ``section 101(f)'' and inserting
``section 104(d)''.
(d) Amendment Related to Section 505.--Section 4010(d)(2)(B) of
ERISA is amended by striking ``section 302(d)(2)'' and inserting
``section 303(d)(2)''.
(e) Amendments Related to Section 506.--
(1) Section 4041(c)(2)(D)(i) of ERISA is amended by
striking ``subsection (a)(2)'' the second place it appears and
inserting ``subparagraph (A) or the regulations under
subsection (a)(2)''.
(2) Section 4042(c)(3)(C)(i) of ERISA is amended--
(A) by striking ``and plan sponsor'' and inserting
``, the plan sponsor, or the corporation'', and
(B) by striking ``subparagraph (A)(i)'' and
inserting ``subparagraph (A)''.
(f) Amendments Related to Section 508.--Section 209(a) of ERISA is
amended--
(1) in paragraph (1)--
(A) by striking ``regulations prescribed by the
Secretary'' and inserting ``such regulations as the
Secretary may prescribe'', and
(B) by striking the last sentence and inserting
``The report required under this paragraph shall be in
the same form, and contain the same information, as
periodic benefit statements under section 105(a).'',
and
(2) by striking paragraph (2) and inserting the following:
``(2) If more than one employer adopts a plan, each such
employer shall furnish to the plan administrator the
information necessary for the administrator to maintain the
records, and make the reports, required by paragraph (1). Such
administrator shall maintain the records, and make the reports,
required by paragraph (1).''.
(g) Amendment Related to Section 509.--Section 101(i)(8)(B) of
ERISA is amended to read as follows:
``(B) One-participant retirement plan.--For
purposes of subparagraph (A), the term `one-participant
retirement plan' means a retirement plan that on the
first day of the plan year--
``(i) covered only one individual (or the
individual and the individual's spouse) and the
individual (or the individual and the
individual's spouse) owned 100 percent of the
plan sponsor (whether or not incorporated), or
``(ii) covered only one or more partners
(or partners and their spouses) in the plan
sponsor.''.

SEC. 7. AMENDMENTS RELATED TO TITLE VI.

(a) Amendments Related to Section 601.--
(1) Amendments to erisa.--
(A) Section 408(g)(3)(D)(ii) of ERISA is amended by
striking ``subsection (b)(14)(B)(ii)'' and inserting
``subsection (b)(14)(A)(ii)''.
(B) Section 408(g)(6)(A)(i) of ERISA is amended by
striking ``financial adviser'' and inserting
``fiduciary adviser''.
(C) Section 408(g)(11)(A) of ERISA is amended--
(i) by striking ``the participant'' each
place it appears and inserting ``a
participant'', and
(ii) by striking ``section 408(b)(4)'' in
clause (ii) and inserting ``subsection
(b)(4)''.
(2) Amendments to 1986 code.--
(A) Section 4975(d)(17) of the 1986 Code, in the
matter preceding subparagraph (A), is amended by
striking ``and that permits'' and inserting ``that
permits''.
(B) Section 4975(f)(8) of the 1986 Code is
amended--
(i) in subparagraph (A), by striking
``subsection (b)(14)'' and inserting
``subsection (d)(17)'',
(ii) in subparagraph (C)(iv)(II), by
striking ``subsection (b)(14)(B)(ii)'' and
inserting ``(d)(17)(A)(ii)'',
(iii) in subparagraph (F)(i)(I), by
striking ``financial adviser'' and inserting
``fiduciary adviser,'',
(iv) in subparagraph (I), by striking
``section 406'' and inserting ``subsection
(c)'', and
(v) in subparagraph (J)(i)--
(I) by striking ``the participant''
each place it appears and inserting ``a
participant'',
(II) in the matter preceding
subclause (I), by inserting ``referred
to in subsection (e)(3)(B)'' after
``investment advice'', and
(III) in subclause (II), by
striking ``section 408(b)(4)'' and
inserting ``subsection (d)(4)''.
(3) Amendment to 2006 act.--Section 601(b)(4) of the 2006
Act is amended by striking ``section 4975(c)(3)(B)'' and
inserting ``section 4975(e)(3)(B)''.
(b) Amendments Related to Section 611.--
(1) Amendment to erisa.--Section 408(b)(18)(C) of ERISA is
amended by striking ``or less''.
(2) Amendments to 1986 code.--Section 4975(d) of the 1986
Code is amended--
(A) in the matter preceding subparagraph (A) of
paragraph (18)--
(i) by striking ``party in interest'' and
inserting ``disqualified person'', and
(ii) by striking ``subsection (e)(3)(B)''
and inserting ``subsection (e)(3)'',
(B) in paragraphs (19), (20), and (21), by striking
``party in interest'' each place it appears and
inserting ``disqualified person'', and
(C) by striking ``or less'' in paragraph (21)(C).
(c) Amendments Related to Section 612.--Section 4975(f)(11)(B)(i)
of the 1986 Code is amended by--
(1) inserting ``of the Employee Retirement Income Security
Act of 1974'' after ``section 407(d)(1)'', and
(2) inserting ``of such Act'' after ``section 407(d)(2)''.
(d) Amendments Related to Section 624.--Section 404(c)(5) of ERISA
is amended by striking ``participant'' each place it appears and
inserting ``participant or beneficiary''.

SEC. 8. AMENDMENTS RELATED TO TITLE VII.

(a) Amendments to ERISA.--
(1) Section 203(f)(1)(B) of ERISA is amended to read as
follows:
``(B) the requirements of section 204(c) or 205(g),
or the requirements of subsection (e), with respect to
accrued benefits derived from employer
contributions,''.
(2) Section 204(b)(5) of ERISA is amended--
(A) by striking ``clause'' in subparagraph (A)(iii)
and inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable''
in subparagraph (C).
(3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is
amended to read as follows:
``(II) Preservation of capital.--An
applicable defined benefit plan shall
be treated as failing to meet the
requirements of paragraph (1)(H) unless
the plan provides that an interest
credit (or equivalent amount) of less
than zero shall in no event result in
the account balance or similar amount
being less than the aggregate amount of
contributions credited to the
account.''.
(b) Amendments to 1986 Code.--
(1) Section 411(b)(5) of the 1986 Code is amended--
(A) by striking ``clause'' in subparagraph (A)(iii)
and inserting ``subparagraph'', and
(B) by inserting ``otherwise'' before ``allowable''
in subparagraph (C).
(2) Section 411(a)(13)(A) of the 1986 Code is amended--
(A) by striking ``paragraph (2)'' in clause (i) and
inserting ``subparagraph (B)'',
(B) by striking clause (ii) and inserting the
following new clause:
``(ii) the requirements of subsection
(a)(11) or (c), or the requirements of section
417(e), with respect to accrued benefits
derived from employer contributions,'', and
(C) by striking ``paragraph (3)'' in the matter
following clause (ii) and inserting ``subparagraph
(C)''.
(3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986
Code is amended to read as follows:
``(II) Preservation of capital.--An
applicable defined benefit plan shall
be treated as failing to meet the
requirements of paragraph (1)(H) unless
the plan provides that an interest
credit (or equivalent amount) of less
than zero shall in no event result in
the account balance or similar amount
being less than the aggregate amount of
contributions credited to the
account.''.
(c) Amendments to 2006 Act.--
(1) Section 701(d)(2) of the 2006 Act is amended by
striking ``204(g)'' and inserting ``205(g)''.
(2) Section 701(e) of the 2006 Act is amended--
(A) by inserting ``on or'' after ``period'' in
paragraph (3),
(B) in paragraph (4)--
(i) by inserting ``the earlier of'' after
``before'' in the matter preceding subparagraph
(A), and
(ii) by striking ``earlier'' and inserting
``later'' in subparagraph (A),
(C) by inserting ``on or'' before ``after'' each
place it appears in paragraph (5), and
(D) by adding at the end the following new
paragraph:
``(6) Special rule for vesting requirements.--The
requirements of section 203(f)(2) of the Employee Retirement
Income Security Act of 1974 and section 411(a)(13)(B) of the
Internal Revenue Code of 1986 (as added by this Act)--
``(A) shall not apply to a participant who does not
have an hour of service after the effective date of
such requirements (as otherwise determined under this
subsection); and
``(B) in the case of a plan other than a plan
described in paragraph (3) or (4), shall apply to plan
years ending on or after June 29, 2005.''.

SEC. 9. AMENDMENTS RELATED TO TITLE VIII.

(a) Amendments Related to Section 801.--
(1) Section 404(o) of the 1986 Code is amended--
(A) by striking ``430(g)(2)'' in paragraph
(2)(A)(ii) and inserting ``430(g)(3)'', and
(B) by striking ``412(f)(4)'' in paragraph (4)(B)
and inserting ``412(d)(3)''.
(2) Section 404(a)(7)(A) of the 1986 Code is amended--
(A) by striking the next to last sentence, and
(B) by striking ``the plan's funding shortfall
determined under section 430'' in the last sentence and
inserting ``the excess (if any) of the plan's funding
target (as defined in section 430(d)(1)) over the value
of the plan's assets (as determined under section
430(g)(3))''.
(b) Amendment Related to Section 802.--Section 404(a)(1)(D)(i) of
the 1986 Code is amended by striking ``431(c)(6)(C)'' and inserting
``431(c)(6)(D)''.
(c) Amendment Related to Section 803.--Clause (iii) of section
404(a)(7)(C) of the 1986 Code is amended to read as follows:
``(iii) Limitation.--In the case of
employer contributions to 1 or more defined
contribution plans--
``(I) if such contributions do not
exceed 6 percent of the compensation
otherwise paid or accrued during the
taxable year to the beneficiaries under
such plans, this paragraph shall not
apply to such contributions or to
employer contributions to the defined
benefit plans to which this paragraph
would otherwise apply by reason of
contributions to the defined
contribution plans, and
``(II) if such contributions exceed
6 percent of such compensation, this
paragraph shall be applied by only
taking into account such contributions
to the extent of such excess.
For purposes of this clause, amounts carried
over from preceding taxable years under
subparagraph (B) shall be treated as employer
contributions to 1 or more defined
contributions plans to the extent attributable
to employer contributions to such plans in such
preceding taxable years.''.
(d) Amendments Related to Section 824.--
(1) Section 408A(c)(3)(B) of the 1986 Code, as in effect
after the amendments made by section 824(b)(1) of the 2006 Act,
is amended--
(A) by striking the second ``an'' before
``eligible'',
(B) by striking ``other than a Roth IRA'', and
(C) by adding at the end the following new flush
sentence:
``This subparagraph shall not apply to a qualified
rollover contribution from a Roth IRA or to a qualified
rollover contribution from a designated Roth account
which is a rollover contribution described in section
402A(c)(3)(A).''
(2) Section 408A(d)(3)(B), as in effect after the
amendments made by section 824(b)(2)(B) of the 2006 Act, is
amended by striking ``(other than a Roth IRA)'' and by
inserting at the end the following new sentence: ``This
paragraph shall not apply to a distribution which is a
qualified rollover contribution from a Roth IRA or a qualified
rollover contribution from a designated Roth account which is a
rollover contribution described in section 402A(c)(3)(A)''.
(e) Amendment to Section 827.--The first sentence of section
72(t)(2)(G)(iv) of the 1986 Code is amended by inserting ``on or''
before ``before''.
(f) Amendments Related to Section 829.--
(1) Section 402(c)(11) of the 1986 Code is amended--
(A) by inserting ``described in paragraph
(8)(B)(iii)'' after ``eligible retirement plan'' in
subparagraph (A), and
(B) by striking ``trust'' before ``designated
beneficiary'' in subparagraph (B).
(2)(A) Section 402(f)(2)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``Such term shall
include any distribution to a designated beneficiary which
would be treated as an eligible rollover distribution by reason
of subsection (c)(11), or section 403(a)(4)(B), 403(b)(8)(B),
or 457(e)(16)(B), if the requirements of subsection (c)(11)
were satisfied.''
(B) Clause (i) of section 402(c)(11)(A) of the 1986 Code is
amended by striking ``for purposes of this subsection''.
(C) The amendments made by this paragraph shall apply with
respect to plan years beginning after December 31, 2008.
(g) Amendment Related to Section 832.--Section 415(f) of the 1986
Code is amended by striking paragraph (2) and by redesignating
paragraph (3) as paragraph (2).
(h) Amendments Related to Section 833.--
(1) Section 408A(c)(3)(C) of the 1986 Code, as added by
section 833(c) of the 2006 Act, is redesignated as subparagraph
(E).
(2) In the case of taxable years beginning after December
31, 2009, section 408A(c)(3)(E) of the 1986 Code (as
redesignated by paragraph (1))--
(A) is redesignated as subparagraph (D), and
(B) is amended by striking ``subparagraph (C)(ii)''
and inserting ``subparagraph (B)(ii)''.
(i) Amendments Related to Section 841.--
(1) Section 420(c)(1)(A) of the 1986 Code is amended by
adding at the end the following new sentence: ``In the case of
a qualified future transfer or collectively bargained transfer
to which subsection (f) applies, any assets so transferred may
also be used to pay liabilities described in subsection
(f)(2)(C).''
(2) Section 420(f)(2) of the 1986 Code is amended by
striking ``such'' before ``the applicable'' in subparagraph
(D)(i)(I).
(3) Section 4980(c)(2)(B) of the 1986 Code is amended by
striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and by
adding at the end the following new clause:
``(iii) any transfer described in section
420(f)(2)(B)(ii)(II).''.
(j) Amendments Related to Section 845.--
(1) Subsection (l) of section 402 of the 1986 Code is
amended--
(A) in paragraph (1)--
(i) by inserting ``maintained by the
employer described in paragraph (4)(B)'' after
``an eligible retirement plan'', and
(ii) by striking ``of the employee, his
spouse, or dependents (as defined in section
152)'' ,
(B) in paragraph (4)(D), by--
(i) inserting ``(as defined in section
152)'' after ``dependents'', and
(ii) striking ``health insurance plan'' and
inserting ``health plan'', and
(C) in paragraph (5)(A), by striking ``health
insurance plan'' and inserting ``health plan''.
(2) Subparagraph (B) of section 402(l)(3) of the 1986 Code
is amended by striking ``all amounts distributed from all
eligible retirement plans were treated as 1 contract for
purposes of determining the inclusion of such distribution
under section 72'' and inserting ``all amounts to the credit of
the eligible public safety officer in all eligible retirement
plans maintained by the employer described in paragraph (4)(B)
were distributed during such taxable year and all such plans
were treated as 1 contract for purposes of determining under
section 72 the aggregate amount which would have been so
includible''.
(k) Amendments Related to Section 854.--
(1) Section 3121(b)(5)(E) of the 1986 Code is amended by
striking ``or special trial judge''.
(2) Section 210(a)(5)(E) of the Social Security Act is
amended by striking ``or special trial judge''.
(l) Amendments Related to Section 856.--Section 856 of the 2006
Act, and the amendments made by such section, are hereby repealed, and
the Internal Revenue Code of 1986 shall be applied and administered as
if such sections and amendments had not been enacted.
(m) Amendment Related to Section 864.--Section 864(a) of the 2006
Act is amended by striking ``Reconciliation''.

SEC. 10. AMENDMENTS RELATED TO TITLE IX.

(a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of
the 1986 Code is amended to read as follows:
``(iv) One-participant retirement plan.--
For purposes of clause (iii), the term `one-
participant retirement plan' means a retirement
plan that on the first day of the plan year--
``(I) covered only one individual
(or the individual and the individual's
spouse) and the individual (or the
individual and the individual's spouse)
owned 100 percent of the plan sponsor
(whether or not incorporated), or
``(II) covered only one or more
partners (or partners and their
spouses) in the plan sponsor.''.
(b) Amendments Related to Section 902.--
(1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended
by striking ``such compensation as exceeds 1 percent but does
not'' and inserting ``such contributions as exceed 1 percent
but do not''.
(2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code
are each amended--
(A) by striking ``an erroneous automatic
contribution'' and inserting ``a permissible
withdrawal'', and
(B) by striking ``erroneous automatic
contribution'' in the heading and inserting
``permissible withdrawal''.
(3) Section 402(g)(2)(A)(ii) of the 1986 Code is amended by
inserting ``through the end of such taxable year'' after ``such
amount''.
(4) Section 414(w)(3) of the 1986 Code is amended--
(A) in subparagraph (B), by inserting ``and'' after
the comma at the end,
(B) by striking subparagraph (C), and
(C) by redesignating subparagraph (D) as
subparagraph (C).
(5) Section 414(w)(5) of the 1986 Code is amended by
striking ``and'' at the end of subparagraph (B), by striking
the period at the end of subparagraph (C) and inserting a
comma, and by adding at the end the following:
``(D) a simplified employee pension the terms of
which provide for a salary reduction arrangement
described in section 408(k)(6), and
``(E) a simple retirement account (as defined in
section 408(p)).''.
(6) Section 414(w)(6) of the 1986 Code is amended by
inserting ``or for purposes of applying the limitation under
section 402(g)(1)'' before the period at the end.
(c) Amendments Related to Section 903.--
(1) Amendment of 1986 code.--Section 414(x)(1) of the 1986
Code is amended by adding at the end of paragraph (1) the
following new sentence: ``In the case of a termination of the
defined benefit plan and the applicable defined contribution
plan forming part of an eligible combined plan, the plan
administrator shall terminate each such plan separately.''
(2) Amendments of erisa.--Section 210(e) of ERISA is
amended--
(A) by adding at the end of paragraph (1) the
following new sentence: ``In the case of a termination
of the defined benefit plan and the applicable defined
contribution plan forming part of an eligible combined
plan, the plan administrator shall terminate each such
plan separately.'', and
(B) by striking paragraph (3) and by redesignating
paragraphs (4), (5), and (6) as paragraphs (3), (4),
and (5), respectively.
(d) Amendments Related to Section 906.--
(1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by
striking ``paragraph (1)'' and inserting ``paragraph (10)''.
(2) Section 4021(b) of ERISA is amended by inserting ``or''
at the end of paragraph (12), by striking ``; or'' at the end
of paragraph (13) and inserting a period, and by striking
paragraph (14).

SEC. 11. AMENDMENTS RELATED TO TITLE X.

(a) Amendments to Railroad Retirement Act.--
(1) Section 14(b) of the Railroad Retirement Act of 1974
(45 U.S.C. 231m(b)) is amended by adding at the end the
following:
``(3)(i) Payments made pursuant to paragraph (2) of this
subsection shall not require that the employee be entitled to
an annuity under section 2(a)(1) of this Act: Provided,
however, That where an employee is not entitled to such an
annuity, payments made pursuant to paragraph (2) may not begin
before the month in which the following three conditions are
satisfied:
``(A) The employee has completed ten years of
service in the railroad industry or, five years of
service all of which accrues after December 31, 1995.
``(B) The spouse or former spouse attains age 62.
``(C) The employee attains age 62 (or if deceased,
would have attained age 62).
``(ii) Payments made pursuant to paragraph (2) of this
subsection shall terminate upon the death of the spouse or
former spouse, unless the court document provides for
termination at an earlier date. Notwithstanding the language in
a court order, that portion of payments made pursuant to
paragraph (2) which represents payments computed pursuant to
section 3(f)(2) of this Act shall not be paid after the death
of the employee.
``(iii) If the employee is not entitled to an annuity under
section 2(a)(1) of this Act, payments made pursuant to
paragraph (2) of this subsection shall be computed as though
the employee were entitled to an annuity.''.
(2) Subsection (d) of section 5 of the Railroad Retirement
Act (45 U.S.C. 231d) is repealed.
(b) Effective Dates.--
(1) Subsection (a)(1).--The amendment made by subsection
(a)(1) shall apply with respect to payments due for months
after August 2007. If, prior to the effective date of such
amendment, payment pursuant to paragraph (2) of section 14(b)
of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(b)) was
terminated because of the employee's death, payment to the
former spouse may be reinstated for months after August 2007.
(2) Subsection (a)(2).--The amendment made by subsection
(a)(2) shall take effect upon the date of the enactment of this
Act.

SEC. 12. AMENDMENTS RELATED TO TITLE XI.

(a) Amendment Related to Section 1104.--Section 1104(d)(1) of the
2006 Act is amended by striking ``Act'' the first place it appears and
inserting ``section''.
(b) Amendments Related to Section 1105.--Section 3304(a) of the
1986 Code is amended--
(1) in paragraph (15)--
(A) by redesignating clauses (i) and (ii) of
subparagraph (A) as subclauses (I) and (II),
(B) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii),
(C) by striking the semicolon at the end of clause
(ii) (as so redesignated) and inserting ``, and'',
(D) by striking ``(15)'' and inserting ``(15)(A)
subject to subparagraph (B),'', and
(E) by adding at the end the following:
``(B) the amount of compensation shall not be
reduced on account of any payments of governmental or
other pensions, retirement or retired pay, annuity, or
other similar payments which are not includible in the
gross income of the individual for the taxable year in
which it was paid because it was part of a rollover
distribution;'', and
(2) by striking the last sentence.
(c) Amendments Related to Section 1106.--Section 3(37)(G) of ERISA
is amended by--
(1) striking ``paragraph'' each place it appears in clauses
(ii), (iii), and (v)(I) and inserting ``subparagraph'',
(2) striking ``subclause (i)(II)'' in clause (iii) and
inserting ``clause (i)(II)'',
(3) striking ``subparagraph'' in clause (v)(II) and
inserting ``clause'', and
(4) by striking ``section 101(b)(4)'' in clause (v)(III)
and inserting ``section 101(b)(1)''.

SEC. 13. EFFECTIVE DATE.

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

Passed the House of Representatives March 13, 2008.

Attest:

LORRAINE C. MILLER,

Clerk.
Calendar No. 621

110th CONGRESS

2d Session

H. R. 3361

_______________________________________________________________________

AN ACT

To make technical corrections related to the Pension Protection Act of
2006.

_______________________________________________________________________

March 31 (legislative day, March 13), 2008

Received; read twice and placed on the calendar