110th CONGRESS
1st Session
S. 1974
AN ACT
To make technical corrections related to the Pension Protection Act of 2006.
Short title; references to acts
In general
This Act may be cited
as the Pension Protection Technical
Corrections Act of 2007
.
References to Acts
For purposes of this Act—
Amendment of 1986 Code
The term 1986 Code means the Internal Revenue Code of 1986.
Amendment of ERISA
The term ERISA means the Employee Retirement Income Security Act of 1974.
2006 Act
The term 2006 Act means the Pension Protection Act of 2006.
Amendments related to Title I
Amendments related to sections 101 and 111
Amendments to ERISA
Clause (i) of
section 302(c)(1)(A) of ERISA is amended by striking the plan is
and inserting the plan are
.
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).
Section 302(d)(1)
of ERISA is amended by striking , the valuation date,
.
Amendments to 1986 Code
Clause (i) of
section 412(c)(1)(A) of the 1986 Code is amended by striking the plan
is
and inserting the plan are
.
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).
Section 412(d)(1)
of the 1986 Code is amended by striking , the valuation
date,
.
Amendments related to sections 102 and 112
Amendments to ERISA
Section 303(b) of ERISA is amended to read as follows:
Target normal cost
For purposes of this section—
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—
the sum of—
the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plus
the amount of plan-related expenses expected to be paid from plan assets during the plan year, over
the amount of mandatory employee contributions expected to be made during the plan year.
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.
.
Section
303(c)(5)(B)(iii) of ERISA is amended by inserting beginning
before after 2008
.
Section
303(c)(5)(B)(iv)(II) of ERISA is amended by inserting for such year
after beginning in 2007)
.
Section
303(f)(4)(A) of ERISA is amended by striking paragraph (2)
and
inserting paragraph (3)
.
Section 303(h)(2)(F) of ERISA is amended—
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
by
striking subparagraph (B)
and inserting subparagraph
(C)
.
Section 303(i) of ERISA is amended—
in paragraph (2)—
by striking subparagraph (A) and inserting the following new subparagraph:
the excess of—
the sum of—
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
the amount of plan-related expenses expected to be paid from plan assets during the plan year, over
the amount of mandatory employee contributions expected to be made during the plan year, plus
, and
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
by
striking subparagraph (A)(ii)
in the last sentence of paragraph
(4)(B) and inserting subparagraph (A)
.
Section 303(j)(3) of ERISA—
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.
,
by adding at the end of subparagraph (E) the following new clause:
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
by striking
and short
years
in the heading of subparagraph (E) and inserting
, short years, and
years with alternate valuation date
.
Section
303(k)(6)(B) of ERISA is amended by striking , except
and all
that follows and inserting a period.
Amendments to 1986 Code
Section 430(b) of the 1986 Code is amended to read as follows:
Target normal cost
For purposes of this section—
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—
the sum of—
the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plus
the amount of plan-related expenses expected to be paid from plan assets during the plan year, over
the amount of mandatory employee contributions expected to be made during the plan year.
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.
.
Section
430(c)(5)(B)(iii) of the 1986 Code is amended by inserting
beginning
before after 2008
.
Section
430(c)(5)(B)(iv)(II) of the 1986 Code is amended by inserting for such
year
after beginning in 2007)
.
Section 430(f) of the 1986 Code is amended—
by
striking as of the first day of the plan year
the second place
it appears in the first sentence of paragraph (3)(A),
by
striking paragraph (2)
in paragraph (4)(A) and inserting
paragraph (3)
,
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
,
by
striking the sum of
in paragraph (6)(C), and
by
striking of the Treasury
in paragraph (8).
Section 430(h)(2) of the 1986 Code is amended—
by
inserting and target normal cost
after funding
target
in subparagraph (B),
by
striking liabilities
and inserting benefits
in
subparagraph (B),
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
by
striking subparagraph (B)
in subparagraph (F) and inserting
subparagraph (C)
.
Section 430(i) of the 1986 Code is amended—
in paragraph (2)—
by striking subparagraph (A) and inserting the following new subparagraph:
the excess of—
the sum of—
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
the amount of plan-related expenses expected to be paid from plan assets during the plan year, over
the amount of mandatory employee contributions expected to be made during the plan year, plus
, and
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
by striking
subparagraph (A)(ii)
in the last sentence of paragraph (4)(B)
and inserting subparagraph (A)
.
Section 430(j)(3) of the 1986 Code 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
may provide.
,
by
striking section 302(c)
in subparagraph (D)(ii)(II) and
inserting section 412(c)
,
by adding at the end of subparagraph (E) the following new clause:
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
by
striking and short
years
in the heading of subparagraph (E) and inserting
, short years, and
years with alternate valuation date
.
Section 430(k) of the 1986 Code is amended—
by
inserting (as provided under paragraph (2))
after
applies
in paragraph (1), and
by
striking , except
and all that follows in paragraph (6)(B) and
inserting a period.
Amendments related to sections 103 and 113
Amendments to ERISA
Section 101(j) of ERISA is amended—
in
paragraph (2), by striking section 206(g)(4)(B)
and inserting
section 206(g)(4)(A)
; and
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.
.
Section
206(g)(1)(B)(ii) of ERISA is amended by striking a funding
and
inserting an adjusted funding
.
The heading for
section 206(g)(1)(C) of ERISA is amended by inserting benefit
after
event
.
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.
.
Section
206(g)(5)(A)(iv) of ERISA is amended by inserting adjusted
before funding
.
Section 206(g)(9)(C) of ERISA is amended—
by
striking without regard to this subparagraph and
in clause (i),
and
in clause (iii)—
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
by inserting
beginning
before after
each place it
appears.
Section 206(g) of ERISA is amended by redesignating paragraph (10) as paragraph (11) and by inserting after paragraph (9) the following new paragraph:
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.
.
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).
.
Amendments to 1986 Code
Section 436(b)(2) of the 1986 Code is amended—
by
striking section 303
and inserting section 430
in
the matter preceding subparagraph (A), and
by
striking a funding
and inserting an adjusted
funding
in subparagraph (B).
Section 436(b)(3) of the 1986 Code is amended—
by
inserting benefit
after event
in the heading, and
by
striking any event
in subparagraph (B) and inserting an
event
.
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.
.
Section 436(f) of the 1986 Code is amended—
by
inserting adjusted
before funding
in paragraph
(1)(D), and
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)
.
Section 436(j)(3) of the 1986 Code is amended—
in subparagraph (A)—
by striking
without regard to this paragraph and
,
by striking
section 430(f)(4)(A)
and inserting section
430(f)(4)
, and
by striking
paragraph (1)
and inserting paragraphs (1) and
(2)
, and
in subparagraph (C)—
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
by inserting
beginning
before after
each place it
appears.
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:
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.
Single-employer plan
For purposes of this section, the term single-employer plan means a plan which is not a multiemployer plan.
.
Amendments to 2006 Act
Sections 103(c)(2)(A)(ii) and 113(b)(2)(A)(ii) of the 2006 Act are each amended—
by striking
subsection
and inserting section
, and
by striking
subparagraph
and inserting paragraph
.
Amendments related to sections 107 and 114
Amendments to ERISA
Section 103(d) of ERISA is amended—
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
by striking paragraph (7) and inserting the following new paragraph:
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.
.
Section 4071 of
ERISA is amended by striking as section 303(k)(4) or 307(e)
and
inserting or section 303(k)(4),
.
Amendments to 1986 Code
Section
401(a)(29) of the 1986 Code is amended by striking on plans in at-risk status
in the
heading.
Section 401(a)(32)(C) of the 1986 Code is amended—
by
striking section 430(j)
and inserting section
430(j)(3)
, and
by
striking paragraph (5)(A)
and inserting section
430(j)(4)(A)
.
Section 401(a)(33) of the 1986 Code is amended—
by
striking section 412(c)(2)
in subparagraph (B)(iii) and
inserting section 412(d)(2)
, and
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)
.
Section 411 of the 1986 Code is amended—
by
striking section 412(c)(2)
in subsection (a)(3)(C) and inserting
section 412(d)(2)
, and
by
striking section 412(e)(2)
in subsection (d)(6)(A) and inserting
section 412(d)(2)
.
Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended to read as follows:
the sum of the funding target and target normal cost determined under section 430, over
.
Section 4971 of the 1986 Code is amended—
by
striking required minimum
in subsection (b)(1) and inserting
minimum required
,
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
by striking
section 412(a)(1)(A)
in subsection (e)(1) and inserting
section 412(a)(2)
.
Amendment to 2006 Act
Section 114 of the 2006 Act is amended by adding at the end the following new subsection:
Effective dates
In general
The amendments made by this section shall apply to plan years beginning after 2007.
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.
.
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
.
Amendments related to title II
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,
.
Amendments related to sections 202 and 212
Amendments to ERISA
Section
305(b)(3)(C) of ERISA is amended by striking section 101(b)(4)
and inserting section 101(b)(1)
.
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
.
Section 305(c)(7) of ERISA is amended—
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
by striking subparagraph (B) and inserting the following new subparagraph:
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
by adding at the end the following new subparagraph:
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.
.
Section 305(e) of ERISA is amended—
in paragraph (3)(C)—
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),
,
by striking clause (ii) and inserting the following new clause:
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
by adding at the end the following new clause:
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.
,
in paragraph (4)—
by striking
the date of
in subparagraph (A)(ii), and
by striking
and taking
in subparagraph (B) and inserting but
taking
,
in paragraph (6)—
by striking
paragraph (1)(B)(i)
and inserting the last sentence of
paragraph (1)
, and
by striking
established
and inserting establish
,
in paragraph (8)(C)(iii)—
by striking
the Secretary
in subclause (I) and inserting the
Secretary of the Treasury, in consultation with the Secretary
,
and
by striking
Secretary
in the last sentence and inserting Secretary of
the Treasury
, and
by striking
an employer's withdrawal liability
in paragraph (9)(B) and
inserting the allocation of unfunded vested benefits to an
employer
.
Section 305(g) of
ERISA is amended by inserting under subsection (c)
after
funding improvement plan
the first place it appears.
Section 302(b)(3)
of ERISA is amended by striking the plan adopts
and inserting
the plan sponsor adopts
.
Section 502(c)(2)
of ERISA is amended by striking 101(b)(4)
and inserting
101(b)(1)
.
Section
502(c)(8)(A) of ERISA is amended by inserting plan
after
multiemployer
.
Amendments to 1986 Code
Section
432(b)(3)(C) of the 1986 Code is amended by striking section
101(b)(4)
and inserting section 101(b)(1)
.
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
.
Section 432(c) of the 1986 Code is amended—
in paragraph (3),
by striking section 304(d)
in subparagraph (A)(ii) and inserting
section 431(d)
, and
in paragraph (7)—
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
by striking subparagraph (B) and inserting the following new subparagraph:
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.
.
Section 432(e) of the 1986 Code is amended—
in paragraph (3)(C)—
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
by striking clause (ii) and inserting the following new clause:
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.
,
in paragraph (4)—
by striking
the date of
in subparagraph (A)(ii), and
by striking
and taking
in subparagraph (B) and inserting but
taking
,
in paragraph (6)—
by striking
paragraph (1)(B)(i)
and inserting the last sentence of
paragraph (1)
, and
by striking
established
and inserting establish
,
in paragraph (8)—
by striking
section 204(g)
in subparagraph (A)(i) and inserting
section 411(d)(6)
,
by inserting
of the Employee Retirement Income Security Act of 1974
after
4212(a)
in subparagraph (C)(i)(II),
by striking
the Secretary of Labor
in subparagraph (C)(iii)(I) and inserting
the Secretary, in consultation with the Secretary of Labor
,
and
by striking
the Secretary of Labor
in the last sentence of subparagraph
(C)(iii) and inserting the Secretary
, and
by striking
an employer's withdrawal liability
in paragraph (9)(B) and
inserting the allocation of unfunded vested benefits to an
employer
.
Section
432(f)(2)(A)(i) of the 1986 Code is amended by striking section
411(b)(1)(A)
and inserting section 411(a)(9)
.
Section 432(g) of
the 1986 Code is amended by inserting under subsection (c)
after
funding improvement plan
the first place it appears.
Section 432(i) of the 1986 Code is amended—
by striking
section 412(a)
in paragraph (3) and inserting section
431(a)
, and
by striking paragraph (9) and inserting the following new paragraph:
Plan sponsor
For purposes of this section, section 431, and section 4971(g)—
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.
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).
.
Section 412(b)(3)
of the 1986 Code is amended by striking the plan adopts
and
inserting the plan sponsor adopts
.
Section 4971(g)(4) of the 1986 Code is amended—
in subparagraph
(B)(ii), by striking first day of
and inserting day
following the close of
, and
by striking clause (ii) of subparagraph (C) and inserting the following new clause:
Plan sponsor
For purposes of clause (i), the term plan sponsor has the meaning given such term by section 432(i)(9).
.
Amendments to 2006 Act
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
.
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.
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
.
Amendments related to title III
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
.
Amendments related to section 302
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)
.
Amendments to 1986 Code
Section
417(e)(3)(D)(i) of the 1986 Code is amended by striking clause
(ii)
and inserting subparagraph (C)
.
Section 415(b)(2)(E)(v) of the 1986 Code is amended to read as follows:
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)).
.
Amendments related to title IV
Amendment related to section 401
Section 4006(a)(3)(A)(i) of ERISA is
amended by striking 1990
and inserting
2005
.
Amendment related to section 402
Section 402(c)(1)(A) of the 2006 Act is
amended by striking commercial airline
and inserting
commercial
.
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).
Amendments related to section 409
Section 4041(b)(5)(A) of ERISA is amended
by striking subparagraph (B)
and inserting subparagraphs
(B) and (D)
.
Amendments related to section 410
Section 4050(d)(4)(A) of ERISA is amended—
by striking
and
at the end of clause (i), and
by striking clause (ii) and inserting the following new clauses:
which is not a plan described in paragraph (2), (3), (4), (6), (7), (8), (9), (10), or (11) of section 4021(b), and
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
.
Amendments related to title V
Amendment related to section 501
Section 101(f)(2)(B)(ii) of ERISA is amended—
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
by striking subclause (II) and inserting the following new subclause:
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),
.
Amendments related to section 502
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).
.
Section 4221 of ERISA is amended by striking subsection (e) and by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.
Amendments related to section 503
Amendments to ERISA
Section 104(b)(3) of ERISA is amended by—
striking
section 103(f)
and inserting section 101(f)
,
and
striking
the administrators
and inserting the
administrator
.
Section
104(d)(1)(E)(ii) of ERISA is amended by inserting funding
after
plan's
.
Amendments to 2006 Act
Section 503(e) of the 2006 Act is amended by striking
section 101(f)
and inserting section
104(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)
.
Amendments related to section 506
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)
.
Section 4042(c)(3)(C)(i) of ERISA is amended—
by striking
and plan sponsor
and inserting , the plan sponsor, or the
corporation
, and
by striking
subparagraph (A)(i)
and inserting subparagraph
(A)
.
Amendments related to section 508
Section 209(a) of ERISA is amended—
in paragraph (1)—
by striking
regulations prescribed by the Secretary
and inserting
such regulations as the Secretary may prescribe
, and
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
by striking paragraph (2) and inserting the following:
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).
Amendment related to section 509
Section 101(i)(8)(B) of ERISA is amended to read as follows:
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—
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
covered only one or more partners (or partners and their spouses) in the plan sponsor.
.
Amendments related to title VI
Amendments related to section 601
Amendments to ERISA
Section
408(g)(3)(D)(ii) of ERISA is amended by striking subsection
(b)(14)(B)(ii)
and inserting subsection
(b)(14)(A)(ii)
.
Section
408(g)(6)(A)(i) of ERISA is amended by striking financial
adviser
and inserting fiduciary adviser
.
Section 408(g)(11)(A) of ERISA is amended—
by
striking the participant
each place it appears and inserting
a participant
, and
by
striking section 408(b)(4)
in clause (ii) and inserting
subsection (b)(4)
.
Amendments to 1986 Code
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
.
Section 4975(f)(8) of the 1986 Code is amended—
in
subparagraph (A), by striking subsection (b)(14)
and inserting
subsection (d)(17)
,
in
subparagraph (C)(iv)(II), by striking subsection (b)(14)(B)(ii)
and inserting (d)(17)(A)(ii)
,
in subparagraph
(F)(i)(I), by striking financial adviser
and inserting
fiduciary adviser,
,
in
subparagraph (I), by striking section 406
and inserting
subsection (c)
, and
in subparagraph (J)(i)—
by striking
the participant
each place it appears and inserting a
participant
,
in the matter
preceding subclause (I), by inserting referred to in subsection
(e)(3)(B)
after investment advice
, and
in subclause
(II), by striking section 408(b)(4)
and inserting
subsection (d)(4)
.
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)
.
Amendments related to section 611
Amendment to ERISA
Section 408(b)(18)(C) of ERISA is amended by striking
or less
.
Amendments to 1986 Code
Section 4975(d) of the 1986 Code is amended—
in the matter preceding subparagraph (A) of paragraph (18)—
by striking
party in interest
and inserting disqualified
person
, and
by striking
subsection (e)(3)(B)
and inserting subsection
(e)(3)
,
in paragraphs
(19), (20), and (21), by striking party in interest
each place
it appears and inserting disqualified person
, and
by striking
or less
in paragraph (21)(C).
Amendments related to section 612
Section 4975(f)(11)(B)(i) of the 1986 Code is amended by—
inserting
of the Employee Retirement Income Security Act of 1974
after
section 407(d)(1)
, and
inserting
of such Act
after section 407(d)(2)
.
Amendments related to section 621
Section 404(c)(1) of ERISA is amended—
by inserting
(or any period that would be a blackout period but for the fact that it
is a period of 3 consecutive business days or less)
after
blackout period
in subparagraph (A)(ii), and
by inserting the
following new sentence at the end of subparagraph (B): In the case of
any period that would be a blackout period but for the fact that it is a period
of 3 consecutive business days or less, the preceding sentence shall apply to
such period if the person referred to in subparagraph (A)(ii) meets the
requirements described in the preceding sentence with respect to such period in
the same manner as if it were a blackout period.
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
.
Amendments related to title VII
Amendments to ERISA
Section 203(f)(1)(B) of ERISA is amended to read as follows:
the requirements of section 204(c) or 205(g), or the requirements of subsection (e), with respect to accrued benefits derived from employer contributions,
.
Section 204(b)(5) of ERISA is amended—
by
striking clause
in subparagraph (A)(iii) and inserting
subparagraph
, and
by
inserting otherwise
before allowable
in
subparagraph (C).
Subclause (II) of section 204(b)(5)(B)(i) of ERISA is amended to read as follows:
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.
.
Amendments to 1986 Code
Section 411(b)(5) of the 1986 Code is amended—
by
striking clause
in subparagraph (A)(iii) and inserting
subparagraph
, and
by
inserting otherwise
before allowable
in
subparagraph (C).
Section 411(a)(13)(A) of the 1986 Code is amended—
by
striking paragraph (2)
in clause (i) and inserting
subparagraph (B)
,
by striking clause (ii) and inserting the following new clause:
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
by striking
paragraph (3)
in the matter following clause (ii) and inserting
subparagraph (C)
.
Subclause (II) of section 411(b)(5)(B)(i) of the 1986 Code is amended to read as follows:
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.
.
Amendments to 2006 Act
Section 701(d)(2)
of the 2006 Act is amended by striking 204(g)
and inserting
205(g)
.
Section 701(e) of the 2006 Act is amended—
by
inserting on or
after period
in paragraph
(3),
in paragraph (4)—
by inserting
the earlier of
after before
in the matter
preceding subparagraph (A), and
by striking
earlier
and inserting later
in subparagraph
(A),
by inserting
on or
before after
each place it appears in
paragraph (5), and
by adding at the end the following new paragraph:
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)—
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
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.
.
Amendments related to title VIII
Amendments related to section 801
Section 404(o) of the 1986 Code is amended—
by striking
430(g)(2)
in paragraph (2)(A)(ii) and inserting
430(g)(3)
, and
by striking
412(f)(4)
in paragraph (4)(B) and inserting
412(d)(3)
.
Section 404(a)(7)(A) of the 1986 Code is amended—
by striking the next to last sentence, and
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))
.
Amendment related to section 803
Clause (iii) of section 404(a)(7)(C) of the 1986 Code is amended to read as follows:
Limitation
In the case of employer contributions to 1 or more defined contribution plans—
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
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.
.
Amendments related to section 824
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—
by striking the
second an
before eligible
,
by striking
other than a Roth IRA
, and
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).
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)
.
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
.
Amendments related to section 829
Section 402(c)(11) of the 1986 Code is amended—
by inserting
described in paragraph (8)(B)(iii)
after eligible
retirement plan
in subparagraph (A), and
by striking
trust
before designated beneficiary
in
subparagraph (B).
Section 402(f)(2)(A) of
the 1986 Code is amended by adding at the end the following new sentence:
Such term shall include any distribution which is treated as an eligible
rollover distribution by reason of section 403(a)(4)(B), 403(b)(8)(B), or
457(e)(16)(B).
Clause (i) of section 402(c)(11) of
the 1986 Code is amended by striking for purposes of this
subsection
.
The amendments made by this paragraph shall apply with respect to plan years beginning after December 31, 2008.
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).
Amendments related to section 833
Section 408A(c)(3)(C) of the 1986 Code, as added by section 833(c) of the 2006 Act, is redesignated as subparagraph (E).
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))—
is redesignated as subparagraph (D), and
is amended by
striking subparagraph (C)(ii)
and inserting subparagraph
(B)(ii)
.
Amendments related to section 841
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).
Section 420(f)(2)
of the 1986 Code is amended by striking such
before the
applicable
in subparagraph (D)(i)(I).
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:
any transfer described in section 420(f)(2)(B)(ii)(II).
.
Amendments related to section 845
Subsection (l) of section 402 of the 1986 Code is amended—
in paragraph (1)—
by
inserting maintained by the employer described in paragraph
(4)(B)
after an eligible retirement plan
, and
by striking
of the employee, his spouse, or dependents (as defined in section
152)
,
in paragraph (4)(D), by—
inserting
(as defined in section 152)
after dependents
,
and
striking
health insurance plan
and inserting health plan
,
and
in paragraph
(5)(A), by striking health insurance plan
and inserting
health plan
.
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
.
Amendments related to section 854
Section
3121(b)(5)(E) of the 1986 Code is amended by striking or special trial
judge
.
Section
210(a)(5)(E) of the Social Security Act is amended by striking or
special trial judge
.
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.
Amendment related to section 864
Section 864(a) of the 2006 Act is amended
by striking Reconciliation
.
Amendments related to title IX
Amendment related to section 901
Section 401(a)(35)(E)(iv) of the 1986 Code is amended to read as follows:
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—
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
covered only one or more partners (or partners and their spouses) in the plan sponsor.
.
Amendments related to section 902
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
.
Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code are each amended—
by striking
an erroneous automatic contribution
and inserting a
permissible withdrawal
, and
by striking
erroneous automatic
contribution
in the heading and inserting
permissible
withdrawal
.
Section
402(g)(2)(A)(ii) of the 1986 Code is amended by inserting through the
end of such taxable year
after such amount
.
Section 414(w)(3) of the 1986 Code is amended—
in subparagraph
(B), by inserting and
after the comma at the end,
by striking subparagraph (C), and
by redesignating subparagraph (D) as subparagraph (C).
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:
a simplified employee pension the terms of which provide for a salary reduction arrangement described in section 408(k)(6), and
a simple retirement account (as defined in section 408(p)).
.
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.
Amendments related to section 903
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.
Amendments of ERISA
Section 210(e) of ERISA 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.
, and
by striking paragraph (3) and by redesignating paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), respectively.
Amendments related to section 906
Section
906(b)(1)(B)(ii) of the 2006 Act is amended by striking paragraph
(1)
and inserting paragraph (10)
.
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).
Amendments related to title X
Amendments to Railroad Retirement Act
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:
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:
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.
The spouse or former spouse attains age 62.
The employee attains age 62 (or if deceased, would have attained age 62).
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.
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.
.
Subsection (d) of section 5 of the Railroad Retirement Act (45 U.S.C. 231d) is repealed.
Effective dates
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.
Subsection (a)(2)
The amendment made by subsection (a)(2) shall take effect upon the date of the enactment of this Act.
Amendments related to title XI
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
.
Amendments related to section 1105
Section 3304(a) of the 1986 Code is amended—
in paragraph (15)—
by redesignating clauses (i) and (ii) of subparagraph (A) as subclauses (I) and (II),
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
by striking the
semicolon at the end of clause (ii) (as so redesignated) and inserting ,
and
,
by striking
(15)
and inserting (15)(A) subject to subparagraph
(B),
, and
by adding at the end the following:
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
by striking the last sentence.
Amendments related to section 1106
Section 3(37)(G) of ERISA is amended by—
striking
paragraph
each place it appears in clauses (ii), (iii), and
(v)(I) and inserting subparagraph
,
striking
subclause (i)(II)
in clause (iii) and inserting clause
(i)(II)
,
striking
subparagraph
in clause (v)(II) and inserting
clause
, and
by striking
section 101(b)(4)
in clause (v)(III) and inserting
section 101(b)(1)
.
Amendment related to title XII
Section
408(d)(8)(D) of the 1986 Code is amended by striking all amounts
distributed from all individual retirement plans were treated as 1 contract
under paragraph (2)(A) for purposes of determining the inclusion of such
distribution under section 72
and inserting all amounts in all
individual retirement plans of the individual were distributed during such
taxable year and all such plans were treated as 1 contract for purposes of
determining under section 72 the aggregate amount which would have been so
includible
.
Other provisions
Amendments related to sections 102 and 112
Amendment of ERISA
The last sentence of section 303(g)(3)(B) of ERISA is
amended to read as follows: Any such averaging shall be adjusted for
contributions, distributions, and expected earnings (as determined by the
plan's actuary on the basis of an assumed earnings rate specified by the
actuary but not in excess of the third segment rate applicable under subsection
(h)(2)(C)(iii)), as specified by the Secretary of the Treasury.
.
Amendment of 1986 Code
The last sentence of section 430(g)(3)(B) of the 1986
Code is amended to read as follows: Any such averaging shall be adjusted
for contributions, distributions, and expected earnings (as determined by the
plan's actuary on the basis of an assumed earnings rate specified by the
actuary but not in excess of the third segment rate applicable under subsection
(h)(2)(C)(iii)), as specified by the Secretary.
.
Amendments related to section 1004
Amendment of ERISA
Paragraph (2) of section 205(d) of ERISA is amended by adding at the end the following:
Notwithstanding subparagraph (B), the applicable percentage is any percentage greater than or equal to 662/3 percent but not more than 75 percent if—
the plan is a defined contribution plan maintained for its employees by an employer which is either exempt from tax under section 501(a) of the Internal Revenue Code of 1986 or aggregated under subsection (b), (c), (m), or (o) of section 414 of such Code with an organization that is exempt from tax under section 501(a) of such Code,
the survivor annuity percentage for the plan’s qualified joint and survivor annuity is 50 percent, and
each participant may elect (subject to the requirements of subsection (a)) an annuity for the life of the participant with a survivor annuity for the life of the spouse which is equal to 100 percent of the amount of the annuity which is payable during the joint lives of the participant and spouse and which is the actuarial equivalent of a single annuity for the life of the participant.
.
Amendment of 1986 Code
Subsection (g) of section 417 of the 1986 Code is amended by adding at the end the following:
Alternative method of compliance
Notwithstanding paragraph (2), the applicable percentage is any percentage greater than or equal to 662/3 percent but not more than 75 percent if—
the plan is a defined contribution plan maintained for its employees by an employer which is either exempt from tax under section 501(a) or aggregated under subsection (b), (c), (m), or (o) of section 414 with an organization that is exempt from tax under section 501(a),
the survivor annuity percentage for the plan’s qualified joint and survivor annuity is 50 percent, and
each participant may elect (subject to the requirements of subsection (a)) an annuity for the life of the participant with a survivor annuity for the life of the spouse which is equal to 100 percent of the amount of the annuity which is payable during the joint lives of the participant and spouse and which is the actuarial equivalent of a single annuity for the life of the participant.
.
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 Senate December 19, 2007.
Secretary.