To provide an orderly transition to new requirements, and for other purposes.

Summary: Amends the Pension Protection Act of 2006, the Internal Revenue Code, and the Employee Retirement Income Security Act of 1974 to delay until January 1, 2009, the implementation of pension plan funding rules enacted by the Pension Protection Act of 2006.

SECTION 1. DELAY OF EFFECTIVE DATES FOR SINGLE-EMPLOYER PLAN FUNDING 
              RULES.

    (a) In General.--
            (1) Delayed effective dates.--The sections of the Pension 
        Protection Act of 2006, the Internal Revenue Code of 1986, and 
        the Employee Retirement Income Security Act of 1974 specified 
        in paragraph (3) are amended--
                    (A) by striking ``2007'' and inserting, ``the 
                applicable funding pre-effective date year (as defined 
                in section 1305 of the Pension Protection Act of 
                2006)'',
                    (B) by striking ``2008'' and inserting ``the 
                applicable funding effective date year (as defined in 
                section 1305 of the Pension Protection Act of 2006)'',
                    (C) by striking ``2009'' and inserting ``the 
                calendar year after the applicable funding effective 
                date year (as defined in section 1305 of the Pension 
                Protection Act of 2006)'',
                    (D) by striking ``2010'' and inserting ``the 
                calendar year that is two years after the applicable 
                effective date year (as defined in section 1305 of the 
                Pension Protection Act of 2006)'',
                    (E) by striking ``2011'' and inserting ``the 
                calendar year that is three years after the applicable 
                funding effective date year (as defined in section 1305 
                of the Pension Protection Act of 2006)'', and
                    (F) by striking ``2012'' and inserting ``the 
                calendar year that is four years after the applicable 
                funding effective year (as defined in section 1305 of 
                the Pension Protection Act of 2006)''.
            (2) Applicable funding effective date years.--Title XIII of 
        the Pension Protection Act of 2006 is amended by adding at the 
        end the following new section:

``SEC. 1305. APPLICABLE FUNDING EFFECTIVE DATES.

    ``(a) In General.--
            ``(1) For purposes of this Act, except as otherwise 
        provided in this section, the term `applicable funding pre-
        effective date year' means 2008.
            ``(2) For purposes of this Act, the term `applicable 
        funding effective date year' means the calendar year 
        immediately following the applicable funding pre-effective date 
        year.
    ``(b) Exception.--Subsection (a)(1) shall apply only if final 
regulations are issued by June 30, 2008, with respect to sections 
206(g), 303(f), 303(g)(3), 303(h)(2), 303(h)(3), 303(i)(4)(A)(ii), and 
303(j)(3)(A) of the Employee Retirement Income Security Act of 1974 and 
sections 430(f), 430(g)(3), 430(h)(2), 430(h)(3), 430(i)(4)(A)(ii), 
430(j)(3)(A), and 436 of the Internal Revenue Code of 1986. If final 
regulations under all such sections are not issued by June 30, 2008, 
for purposes of this Act, the term `applicable funding pre-effective 
date year' shall mean the first calendar year with respect to which all 
such final regulations are issued by June 30 of such year.
    ``(c) Effective Date.--This section shall take effect on the date 
of the enactment of this Act.''.
            (3) Applicable sections.--
                    (A) Pension protection act of 2006.--The amendments 
                made in paragraph (1) shall apply to the following 
                sections of the Pension Protection Act of 2006: 101(d), 
                102(c), 103(c), 104(b), 105(b), 106(b), 107(e), 111(b), 
                112(b), 113(b), 115(a), 115(b)(3), 115(e)(2), 302(c), 
                401(a)(2), 402(b)(1), 505(c), and 802(b).
                    (B) Internal revenue code of 1986.--The amendments 
                made in paragraph (1) shall apply to the following 
                sections of the Internal Revenue Code of 1986: 
                417(e)(3), 430(c)(5), 430(f)(1)(B)(ii)(I),430(f)(3)(C), 
                430(f)(6)(C)(i), 430(f)(7)(C)(i), 430(h)(2)(G), 
                430(i)(4)(B), 430(i)(5)(C), 436(j), and 436(k).
                    (C) Employee retirement income security act of 
                1974.--The amendments made in paragraph (1) shall apply 
                to the following sections of the Employee Retirement 
                Income Security Act of 1974: 205(g)(3), 206(g)(9), 
                206(g)(10), 303(c)(5), 303(f)(1)(B)(ii)(I), 
                303(f)(3)(C), 303(f)(6)(C)(i), 303(f)(7)(C)(i), 
                303(h)(2)(G), 303(i)(4)(B), 303(i)(5)(C), and 
                4041(b)(5)(C)(i).
    (b) Extension of Replacement of 30-Year Treasury Rates.--
            (1) Amendments of erisa.--
                    (A) Determination of range.--Subclause (II) of 
                section 302(b)(5)(B)(ii) of the Employee Retirement 
                Income Security Act of 1974 is amended--
                            (i) by striking ``January 1, 2008'' and 
                        inserting ``January 1 of the applicable funding 
                        effective date year (as defined in section 1305 
                        of the Pension Protection Act of 2006)'', and
                            (ii) in the heading, by striking ``for 
                        years 2004, 2005, 2006, and 2007''.
                    (B) Determination of current liability.--Subclause 
                (IV) of section 302(d)(7)(C)(i) of such Act is 
                amended--
                            (i) by striking ``in 2004, 2005, 2006, or 
                        2007'' and inserting ``after 2003 and before 
                        the applicable funding effective date year (as 
                        defined in section 1305 of the Pension 
                        Protection Act of 2006)'', and
                            (ii) in the heading, by striking ``for 
                        years 2004, 2005, 2006, and 2007''.
                    (C) PBGC premium rate.--Subclause (V) of section 
                4006(a)(3)(E)(iii) of such Act is amended by striking 
                ``January 1, 2008'' and inserting ``January 1 of the 
                applicable funding effective date year (as defined in 
                section 1305 of the Pension Protection Act of 2006)''.
            (2) Amendments of internal revenue code.--
                    (A) Determination of range.--Subclause (II) of 
                section 412(b)(5)(B)(ii) of the Internal Revenue Code 
                of 1986 is amended--
                            (i) by striking ``January 1, 2008'' and 
                        inserting ``January 1 of the applicable funding 
                        effective date year (as defined in section 1305 
                        of the Pension Protection Act of 2006)'', and
                            (ii) in the heading, by striking ``for 
                        years 2004, 2005, 2006, and 2007''.
                    (B) Determination of current liability.--Subclause 
                (IV) of section 412(1)(7)(C)(i) of such Code is 
                amended--
                            (i) by striking ``in 2004, 2005, 2006, and 
                        2007'' and inserting ``after 2003 and before 
                        the applicable funding effective date year (as 
                        defined in section 1305 of the Pension 
                        Protection Act of 2006)'', and
                            (ii) in the heading, by striking ``for 
                        years 2004, 2005, 2006, and 2007''.
            (3) Plan amendments.--Clause (ii) of section 101(c)(2)(A) 
        of the Pension Funding Equity Act of 2004 is amended by 
        striking ``January 1, 2008'' and inserting ``January 1 of the 
        applicable funding effective date year (as defined in section 
        1305 of the Pension Protection Act of 2006)''.
    (c) Conforming Amendments Regarding Transition Rule.--
            (1) In general.--Paragraph (1) of section 115(d) of the 
        Pension Protection Act of 2006 is amended to read as follows:
            ``(1) In general.--Section 769(c)(3) of the Retirement 
        Protection Act of 1994, as added by section 201 of the Pension 
        Funding Equity Act of 2004, is amended by striking `in 2004 and 
        2005' and inserting `after 2003 and before the applicable 
        funding effective date year (as defined in section 1305 of the 
        Pension Protection Act of 2006)'.''.
            (2) Heading.--The heading of subsection (d) of section 115 
        of such Act is amended by striking ``for 2006 and 2007''.
    (d) Conforming Amendments Regarding Funding Notice.--
            (1) In general.--Paragraph (1) of section 501(d) of the 
        Pension Protection Act of 2006 is amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to plan years 
        beginning after December 31 of the applicable funding pre-
        effective date year (as defined in section 1305 of this Act), 
        or, in the case of a multiemployer plan, plan years beginning 
        after December 31, 2007.''.
            (2) Repeal of notice.--Subsection (d) of section 501 of 
        such Act is amended by redesignating paragraph (2) as paragraph 
        (3), and by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Repeal of notice.--The amendment made by subsection 
        (b) shall apply to plan years beginning after December 31, 
        2006.''.
            (3) Transition rule.--Paragraph (3) of section 501(d) of 
        such Act, as redesignated, is amended--
                    (A) by adding ``or, in the case of a single-
                employer plan, before January 1 of the applicable 
                funding effective date year (as defined in section 1305 
                of this Act)'' after ``2008,'',
                    (B) by striking ``2006'' and inserting ``2006 or, 
                in the case of a single-employer plan, before the 
                applicable funding pre-effective date year (as defined 
                in section 1305 of this Act)'',
                    (C) by striking ``2007'' and inserting ``the 
                applicable funding pre-effective date year (as defined 
                in section 1305 of this Act)'',
                    (D) by striking ``or funded percentage'' the second 
                place it appears,
                    (E) by striking ``may provide.'' and inserting 
                ``may provide, and'',
                    (F) by adding at the end the following:
                    ``(C) in the case of a plan year beginning in 2007, 
                the funded percentage as determined using such methods 
                of estimation as the Secretary of the Treasury may 
                provide.''.
    (e) Conforming Amendments Regarding Additional Annual Reporting 
Requirements.--Subsection (f) of section 503 of the Pension Protection 
Act of 2006 is amended to read as follows:
    ``(f) Effective Date.--
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2), the amendments made by this section shall apply 
        to plan years beginning after the applicable funding pre-
        effective date year (as defined in section 1305 of this Act).
            ``(2) Multiemployer plans.--With respect to multiemployer 
        plans, the amendments made by this section shall apply to plan 
        years beginning after December 31, 2007.''.
    (f) Conforming Amendments Regarding Plan Amendments.--
            (1) In general.--Subparagraph (B) of section 1107(b)(1) of 
        the Pension Protection Act of 2006 is amended by striking 
        ``January 1, 2009'' and inserting ``January 1 of the calendar 
        year after the applicable funding effective date year (as 
        defined in section 1305 of this Act)''.
            (2) Governmental plans.--Paragraph (1) of section 1107(b) 
        of such Act is amended to read as follows:
            ``(1) In the case of a governmental plan (as defined in 
        section 414(d) of the Internal Revenue Code of 1986), 
        subparagraph (B) shall be applied as if it read: `on or before 
        the last day of the first plan year beginning on or after 
        January 1 of the calendar year that is three years after the 
        applicable funding effective date year (as defined in section 
        1305 of this Act)'.''.
    (g) Conforming Amendments Regarding Deduction Limits.--
            (1) In general.--Paragraph (1) of section 801(f) of the 
        Pension Protection Act of 2006, as redesignated by paragraph 
        (4), is amended--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraphs (2) and (3)'', and
                    (B) by striking ``December 31, 2007'' and inserting 
                ``December 31 of the applicable funding pre-effective 
                date year (as defined in section 1305 of this Act)''.
            (2) Multiemployer plans.--Subsection (f) of section 801 of 
        such Act, as redesignated by paragraph (4), is amended by 
        redesignating paragraph (2) as paragraph (3) and by inserting 
        after paragraph (1) the following new paragraph:
            ``(2) Multiemployer plans.--Except as provided in paragraph 
        (3), with respect to multiemployer plans, the amendments made 
        by this section shall apply to years beginning after December 
        31, 2007.''.
            (3) Special rule.--Paragraph (3) of section 801(d) of such 
        Act, as redesignated, is amended by adding at the end the 
        following: ``The amendments made by subsection (e) shall apply 
        to years beginning after December 31, 2007, and before January 
        1 of the applicable funding effective date year (as defined in 
        section 1305 of this Act).''.
            (4) Conforming amendments.--
                    (A) In general.--Subparagraph (D) of section 
                404(a)(1) of the Internal Revenue Code of 1986 (as 
                amended by the Pension Protection Act of 2006 other 
                than section 802 of such Act) is amended by adding at 
                the end the following:
                            ``(v) Multiemployer plans.--In the case of 
                        a defined benefit plan which is a multiemployer 
                        plan, except as provided in regulations, the 
                        maximum amount deductible under the limitations 
                        of this paragraph shall not be less than the 
                        excess (if any) of--
                                    ``(I) 140 percent of the current 
                                liability of the plan determined under 
                                section 431(c)(6)(C), over
                                    ``(II) the value of the plan's 
                                assets determined under section 
                                431(c)(2).''.
                    (B) Single-employer plans.--Subparagraph (D) of 
                section 404(a)(1) of such Code is amended--
                            (i) by inserting after ``defined benefit 
                        plan'' in clause (i) the following ``(other 
                        than a multiemployer plan)'',
                            (ii) by striking ``(140 percent in the case 
                        of a multiemployer plan)'' in clause (i), and
                            (iii) by striking ``clause (i)'' in clause 
                        (iv) and inserting ``clauses (i) and (v)''.
    (h) Conforming Amendment Regarding Commercial Airlines.--Paragraph 
(2) of section 402(a) of the Pension Protection Act of 2006 is amended 
by adding at the end the following: ``In the case of an election under 
this paragraph, such sections shall apply with respect to such plan 
sponsor based on the effective date provisions in effect immediately 
before the enactment of section 1305 of this Act.''.

SEC. 2. EFFECTIVE DATE.

    The amendments made by this Act shall take effect as if included in 
the enactment of the Pension Protection Act of 2006.