SECTION 1. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) ERISA Amendments.--Section 602(2)(A) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
            (1) by moving clause (v) to after clause (iv) and before 
        the flush left sentence beginning with ``In the case of a 
        qualified beneficiary'';
            (2) by striking ``In the case of a qualified beneficiary'' 
        and inserting the following:
                            ``(vi) Special rule for disability.--In the 
                        case of a qualified beneficiary''; and
            (3) by redesignating clauses (v) and (vi), as amended by 
        paragraphs (1) and (2), as clauses (viii) and (ix) and by 
        inserting after clause (iv) the following new clauses:
                            ``(v) Special rule for pbgc recipients.--In 
                        the case of a qualifying event described in 
                        section 603(2) with respect to a covered 
                        employee who (as of such qualifying event) has 
                        a nonforfeitable right to a benefit any portion 
                        of which is to be paid by the Pension Benefit 
                        Guaranty Corporation under title IV, 
                        notwithstanding clause (i) or (ii), the date of 
                        the death of the covered employee, or in the 
                        case of the surviving spouse or dependent 
                        children of the covered employee, 36 months 
                        after the date of the death of the covered 
                        employee.
                            ``(vi) Special rule for taa-eligible 
                        individuals.--In the case of a qualifying event 
                        described in section 603(2) with respect to a 
                        covered employee who is (as of the date that 
                        the period of coverage would, but for this 
                        clause or clause (vii), otherwise terminate 
                        under clause (i) or (ii)) a TAA-eligible 
                        individual (as defined in section 
                        605(b)(4)(B)), the period of coverage shall not 
                        terminate by reason of clause (i) or (ii), as 
                        the case may be, before the later of the date 
                        specified in such clause or the date on which 
                        such individual ceases to be such a TAA-
                        eligible individual.
                            ``(vii) Special rule for certain taa-
                        eligible individuals.--In the case of a 
                        qualifying event described in section 603(2) 
                        with respect to a covered employee who is (as 
                        of the date that the period of coverage would, 
                        but for this clause or clause (vi), otherwise 
                        terminate under clause (i) or (ii)) a TAA-
                        eligible individual (as defined in section 
                        605(b)(4)(B)) and who (as of such qualifying 
                        event) has attained age 55 or has completed 10 
                        or more years of service with the employer, 
                        clauses (i) and (ii) shall not apply.''.
    (b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``In the case of a qualified beneficiary'' 
        and inserting the following:
                                    ``(VI) Special rule for 
                                disability.--In the case of a qualified 
                                beneficiary'', and
            (2) by redesignating subclauses (V) and (VI), as amended by 
        paragraph (1), as subclauses (VIII) and (IX) and by inserting 
        after clause (IV) the following new subclauses:
                                    ``(V) Special rule for pbgc 
                                recipients.--In the case of a 
                                qualifying event described in paragraph 
                                (3)(B) with respect to a covered 
                                employee who (as of such qualifying 
                                event) has a nonforfeitable right to a 
                                benefit any portion of which is to be 
                                paid by the Pension Benefit Guaranty 
                                Corporation under title IV of the 
                                Employee Retirement Income Security Act 
                                of 1974, notwithstanding subclause (I) 
                                or (II), the date of the death of the 
                                covered employee, or in the case of the 
                                surviving spouse or dependent children 
                                of the covered employee, 36 months 
                                after the date of the death of the 
                                covered employee.
                                    ``(VI) Special rule for taa-
                                eligible individuals.--In the case of a 
                                qualifying event described in paragraph 
                                (3)(B) with respect to a covered 
                                employee who is (as of the date that 
                                the period of coverage would, but for 
                                this subclause or subclause (VII), 
                                otherwise terminate under subclause (I) 
                                or (II)) a TAA-eligible individual (as 
                                defined in paragraph (5)(C)(iv)(II)), 
                                the period of coverage shall not 
                                terminate by reason of subclause (I) or 
                                (II), as the case may be, before the 
                                later of the date specified in such 
                                subclause or the date on which such 
                                individual ceases to be such a TAA-
                                eligible individual.
                                    ``(VII) Special rule for certain 
                                taa-eligible individuals.--In the case 
                                of a qualifying event described in 
                                paragraph (3)(B) with respect to a 
                                covered employee who is (as of the date 
                                that the period of coverage would, but 
                                for this subclause or subclause (VI), 
                                otherwise terminate under subclause (I) 
                                or (II)) a TAA-eligible individual (as 
                                defined in paragraph (5)(C)(iv)(II)) 
                                and who (as of such qualifying event) 
                                has attained age 55 or has completed 10 
                                or more years of service with the 
                                employer, subclauses (I) and (II) shall 
                                not apply.''.
    (c) PHSA Amendments.--Section 2202(2)(A) of the Public Health 
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
            (1) by striking ``In the case of a qualified beneficiary'' 
        and inserting the following:
                            ``(v) Special rule for disability.--In the 
                        case of a qualified beneficiary''; and
            (2) by redesignating clauses (iv) and (v), as amended by 
        paragraph (1), as clauses (vi) and (vii) and by inserting after 
        clause (iii) the following new clauses:
                            ``(iv) Special rule for taa-eligible 
                        individuals.--In the case of a qualifying event 
                        described in section 2203(2) with respect to a 
                        covered employee who is (as of the date that 
                        the period of coverage would, but for this 
                        clause or clause (v), otherwise terminate under 
                        clause (i) or (ii)) a TAA-eligible individual 
                        (as defined in section 2205(b)(4)(B)), the 
                        period of coverage shall not terminate by 
                        reason of clause (i) or (ii), as the case may 
                        be, before the later of the date specified in 
                        such clause or the date on which such 
                        individual ceases to be such a TAA-eligible 
                        individual.
                            ``(v) Special rule for certain taa-eligible 
                        individuals.--In the case of a qualifying event 
                        described in section 2203(2) with respect to a 
                        covered employee who is (as of the date that 
                        the period of coverage would, but for this 
                        clause or clause (iv), otherwise terminate 
                        under clause (i) or (ii)) a TAA-eligible 
                        individual (as defined in section 
                        2205(b)(4)(B)) and who (as of such qualifying 
                        event) has attained age 55 or has completed 10 
                        or more years of service with the employer, 
                        clauses (i) and (ii) shall not apply.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after January 1, 2008.
Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Internal Revenue Code, and the Public Health Service Act to extend the continuation of group health care benefits as provided by the Consolidated Omnibus Budget Reconciliation Act (COBRA) to certain recipients of benefits paid by the Pension Benefit Guaranty Corporation (PBGC) and to individuals eligible for trade adjustment assistance (TAA) benefits.
To amend title I of the Employee Retirement Income Security Act of 1974, the Internal Revenue Code of 1986, and title XXII of the Public Health Service Act to extend COBRA benefits for certain TAA-eligible individuals and PBGC recipients.