# Worker, Retiree, and Employer Recovery Act of 2008/Title II
## TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS
### SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.

    (a) In General- Section 401(a)(9) of the Internal Revenue Code of 1986 (relating to required distributions) is amended by adding at the end the following new subparagraph:
                   `(H) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION-
                      `(i) IN GENERAL- The requirements of this paragraph shall not apply for calendar year 2009 to--
                         `(I) a defined contribution plan which is described in this subsection or in section 403(a) or 403(b),
                         `(II) a defined contribution plan which is an eligible deferred compensation plan described in section 457(b) but only if such plan is maintained by an employer described in section 457(e)(1)(A), or
                         `(III) an individual retirement plan.
                      `(ii) SPECIAL RULES REGARDING WAIVER PERIOD- For purposes of this paragraph--
                         `(I) the required beginning date with respect to any individual shall be determined without regard to this subparagraph for purposes of applying this paragraph for calendar years after 2009, and
                         `(II) if clause (ii) of subparagraph (B) applies, the 5-year period described in such clause shall be determined without regard to calendar year 2009.'.
    (b) Eligible Rollover Distributions- Section 402(c)(4) of the Internal Revenue Code of 1986 (defining eligible rollover distribution) is amended by adding at the end the following new flush sentence:
`If all or any portion of a distribution during 2009 is treated as an eligible rollover distribution but would not be so treated if the minimum distribution requirements under section 401(a)(9) had applied during 2009, such distribution shall not be treated as an eligible rollover distribution for purposes of section 401(a)(31) or 3405(c) or subsection (f) of this section.'.
    (c) Effective Dates-
       (1) IN GENERAL- The amendments made by this section shall apply for calendar years beginning after December 31, 2008.
       (2) PROVISIONS RELATING TO PLAN OR CONTRACT AMENDMENTS-
          (A) IN GENERAL- If this paragraph applies to any pension plan or contract amendment, such pension plan or contract shall not fail to be treated as being operated in accordance with the terms of the plan during the period described in subparagraph (B)(ii) solely because the plan operates in accordance with this section.
          (B) AMENDMENTS TO WHICH PARAGRAPH APPLIES-
             (i) IN GENERAL- This paragraph shall apply to any amendment to any pension plan or annuity contract which--
                (I) is made pursuant to the amendments made by this section, and
                (II) is made on or before the last day of the first plan year beginning on or after January 1, 2011.
In the case of a governmental plan, subclause (II) shall be applied by substituting `2012' for `2011'.
             (ii) CONDITIONS- This paragraph shall not apply to any amendment unless during the period beginning on the effective date of the amendment and ending on December 31, 2009, the plan or contract is operated as if such plan or contract amendment were in effect.

### SEC. 202. TRANSITION RULE CLARIFICATION.

    (a) Amendment to ERISA- Subparagraph (B) of section 303(c)(5) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(5)) is amended--
       (1) by striking clause (iii) and redesignating clause (iv) as clause (iii); and
       (2) by striking clause (i) and inserting the following:
                      `(i) IN GENERAL- Except as provided in clause (iii), in the case of plan years beginning after 2007 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for purposes of paragraph (3)(A) and subparagraph (A).'.
    (b) Amendment to 1986 Code- Subparagraph (B) of section 430(c)(5) of the Internal Revenue Code of 1986 is amended--
       (1) by striking clause (iii) and redesignating clause (iv) as clause (iii); and
       (2) by striking clause (i) and inserting the following:
                      `(i) IN GENERAL- Except as provided in clause (iii), in the case of plan years beginning after 2007 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for purposes of paragraph (3)(A) and subparagraph (A).'.
    (c) Effective Date- The amendments made by subsections (a) and (b) shall apply as if included in the enactment of sections 102 and 112, respectively, of the Pension Protection Act of 2006.

### SEC. 203. TEMPORARY MODIFICATION OF APPLICATION OF LIMITATION ON BENEFIT ACCRUALS.

In the case of the first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, sections 206(g)(4)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue Code of 1986 shall be applied by substituting the plan's adjusted funding target attainment percentage for the preceding plan year for such percentage for such plan year but only if the adjusted funding target attainment percentage for the preceding plan year is greater.

### SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER PLANS AS IN ENDANGERED OR CRITICAL STATUS.

    (a) In General- Notwithstanding the actuarial certification under section 305(b)(3) of the Employee Retirement Income Security Act of 1974 and section 432(b)(3) of the Internal Revenue Code of 1986, if a plan sponsor of a multiemployer plan elects the application of this section, then, for purposes of section 305 of such Act and section 432 of such Code--
       (1) the status of the plan for its first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, shall be the same as the status of such plan under such sections for the plan year preceding such plan year, and
       (2) in the case of a plan which was in endangered or critical status for the preceding plan year described in paragraph (1), the plan shall not be required to update its plan or schedules under section 305(c)(6) of such Act and section 432(c)(6) of such Code, or section 305(e)(3)(B) of such Act and section 432(e)(3)(B) of such Code, whichever is applicable, until the plan year following the first plan year described in paragraph (1).
If section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 did not apply to the preceding plan year described in paragraph (1), the plan actuary shall make a certification of the status of the plan under section 305(b)(3) of such Act and section 432(b)(3) of such Code for the preceding plan year in the same manner as if such sections had applied to such preceding plan year.
    (b) Exception for Plans Becoming Critical During Election- If--
       (1) an election was made under subsection (a) with respect to a multiemployer plan, and
       (2) such plan has, without regard to such election, been certified by the plan actuary under section 305(b)(3) of such Act and section 432(b)(3) of such Code to be in critical status for the first plan year described in subsection (a)(1), then such plan shall be treated as a plan in critical status for such plan year for purposes of applying section 4971(g)(1)(A) of such Code, section 302(b)(3) of such Act (without regard to the second sentence thereof), and section 412(b)(3) of such Code (without regard to the second sentence thereof).
    (c) Election and Notice-
       (1) ELECTION- An election under subsection (a) shall--
          (A) be made at such time and in such manner as the Secretary of the Treasury or the Secretary's delegate may prescribe and, once made, may be revoked only with the consent of the Secretary, and
          (B) if the election is made--
             (i) before the date the annual certification is submitted to the Secretary or the Secretary's delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, be included with such annual certification, and
             (ii) after such date, be submitted to the Secretary or the Secretary's delegate not later than 30 days after the date of the election.
       (2) NOTICE TO PARTICIPANTS-
          (A) IN GENERAL- Notwithstanding section 305(b)(3)(D) of such Act and section 431(b)(3)(D) of such Code, if the plan is neither in endangered nor critical status by reason of an election made under subsection (a)--
             (i) the plan sponsor of a multiemployer plan shall not be required to provide notice under such sections, and
             (ii) the plan sponsor shall provide to the participants and beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Secretary of Labor a notice of the election and such other information as the Secretary of the Treasury (in consultation with the Secretary of Labor) may require--
                (I) if the election is made before the date the annual certification is submitted to the Secretary or the Secretary's delegate under section 305(b)(3) of such Act and section 432(b)(3) of such Code, not later than 30 days after the date of the certification, and
                (II) if the election is made after such date, not later than 30 days after the date of the election.
          (B) NOTICE OF ENDANGERED STATUS- Notwithstanding section 305(b)(3)(D) of such Act and section 431(b)(3)(D) of such Code, if the plan is certified to be in critical status for any plan year but is in endangered status by reason of an election made under subsection (a), the notice provided under such sections shall be the notice which would have been provided if the plan had been certified to be in endangered status.

### SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT AND REHABILITATION PERIODS FOR MULTIEMPLOYER PENSION PLANS IN CRITICAL AND ENDANGERED STATUS FOR 2008 OR 2009.

    (a) In General- If the plan sponsor of a multiemployer plan which is in endangered or critical status for a plan year beginning in 2008 or 2009 (determined after application of section 204) elects the application of this section, then, for purposes of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986--
       (1) except as provided in paragraph (2), the plan's funding improvement period or rehabilitation period, whichever is applicable, shall be 13 years rather than 10 years, and
       (2) in the case of a plan in seriously endangered status, the plan's funding improvement period shall be 18 years rather than 15 years.
    (b) Definitions and Special Rules- For purposes of this section--
       (1) ELECTION- An election under this section shall be made at such time, and in such manner and form, as (in consultation with the Secretary of Labor) the Secretary of the Treasury or the Secretary's delegate may prescribe.
       (2) DEFINITIONS- Any term which is used in this section which is also used in section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such sections.
    (c) Effective Date- This section shall apply to plan years beginning after December 31, 2007.