```

[110th Congress Public Law 458]
[From the U.S. Government Printing Office]

[DOCID: f:publ458.110]

[[Page 5091]]

           WORKER, RETIREE, AND EMPLOYER RECOVERY ACT OF 2008

[[Page 122 STAT. 5092]]

Public Law 110-458
110th Congress

                                 An Act

 
 To make technical corrections related to the Pension Protection Act of 
  2006, and for other purposes. <<NOTE: Dec. 23, 2008 -  [H.R. 7327]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Worker, Retiree, 
and Employer Recovery Act of 2008.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short <<NOTE: 29 USC 1001 note.>> Title.--This Act may be cited 
as the ``Worker, Retiree, and Employer Recovery Act of 2008''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF 
                                  2006

Sec. 100. References in title.

Subtitle A--Technical Corrections Related to the Pension Protection Act 
                                 of 2006

Sec. 101. Amendments related to Title I.
Sec. 102. Amendments related to title II.
Sec. 103. Amendments related to title III.
Sec. 104. Amendments related to title IV.
Sec. 105. Amendments related to title V.
Sec. 106. Amendments related to title VI.
Sec. 107. Amendments related to title VII.
Sec. 108. Amendments related to title VIII.
Sec. 109. Amendments related to title IX.
Sec. 110. Amendments related to title X.
Sec. 111. Amendments related to title XI.
Sec. 112. Effective date.

                      Subtitle B--Other Provisions

Sec. 121. Amendments Related to Sections 102 and 112 of the Pension 
           Protection Act of 2006.
Sec. 122. Modification of interest rate assumption required with respect 
           to certain small employer plans.
Sec. 123. Determination of market rate of return for governmental plans.
Sec. 124. Treatment of certain reimbursements from governmental plans 
           for medical care.
Sec. 125. Rollover of amounts received in airline carrier bankruptcy to 
           Roth IRAs.
Sec. 126. Determination of asset value for special airline funding 
           rules.
Sec. 127. Modification of penalty for failure to file partnership 
           returns.
Sec. 128. Modification of penalty for failure to file S corporation 
           returns.

        TITLE II--PENSION PROVISIONS RELATING TO ECONOMIC CRISIS

Sec. 201. Temporary waiver of required minimum distribution rules for 
           certain retirement plans and accounts.
Sec. 202. Transition rule clarification.
Sec. 203. Temporary modification of application of limitation on benefit 
           accruals.
Sec. 204. Temporary delay of designation of multiemployer plans as in 
           endangered or critical status.

[[Page 122 STAT. 5093]]

Sec. 205. Temporary extension of the funding improvement and 
           rehabilitation periods for multiemployer pension plans in 
           critical and endangered status for 2008 or 2009.

TITLE I--TECHNICAL CORRECTIONS RELATED TO THE PENSION PROTECTION ACT OF 
                                  2006

SEC. 100. <<NOTE: 26 USC 72 note.>> REFERENCES IN TITLE.

    For purposes of this title:
            (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.

Subtitle A--Technical Corrections Related to the Pension Protection Act 
                                 of 2006

SEC. 101. 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 <<NOTE: 29 USC 1082.>> 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) <<NOTE: 26 
                USC 412.>> 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 <<NOTE: 29 USC 
                1083.>> 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

[[Page 122 STAT. 5094]]

                          ``(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 <<NOTE: 29 
                USC 1083.>> 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.'',

[[Page 122 STAT. 5095]]

                          (ii) by adding at the end of subparagraph (E) 
                      the following new clause:
                          ``(iii) Plan with alternate valuation date.--
                      The <<NOTE: Regulations.>> 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 <<NOTE: 29 USC 
                1083.>> 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 <<NOTE: >> 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),

[[Page 122 STAT. 5096]]

                          (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 <<NOTE: >> 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 <<NOTE: Regulations.>> 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.
            (3) Effective <<NOTE: 26 USC 430 note.>> dates.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by paragraphs (1)(A), 
                (1)(F)(i),

[[Page 122 STAT. 5097]]

                (2)(A), and (2)(F)(i) shall apply to plan years 
                beginning after December 31, 2008.
                    (B) Election for earlier application.--The 
                amendments made by such paragraphs shall apply to a plan 
                for the first plan year beginning after December 31, 
                2007, if the plan sponsor makes the election under this 
                subparagraph. An election under this subparagraph shall 
                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.

    (c) Amendments Related to Sections 103 and 113.--
            (1) Amendments to erisa.--
                    (A) Section 101(j) of ERISA <<NOTE: 29 USC 
                1021.>> 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 <<NOTE: 29 
                USC 1056.>> 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 <<NOTE: 29 USC 
                1132.>> 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 <<NOTE: 26 
                USC 436.>> is amended--

[[Page 122 STAT. 5098]]

                          (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 <<NOTE: 26 
                USC 436.>> 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 <<NOTE: 29 USC 1021; 26 USC 436 
        note.>> 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 <<NOTE: 29 USC 
                1023.>> is amended--

[[Page 122 STAT. 5099]]

                          (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 <<NOTE: 29 USC 1371.>> 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 <<NOTE: 26 
                USC 401.>> 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 <<NOTE: 26 USC 
                411.>> 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 <<NOTE: 26 USC 414.>> 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 <<NOTE: 26 USC 
                4971.>> 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 <<NOTE: Applicability. 26 USC 401 note.>> 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.''.

[[Page 122 STAT. 5100]]

    (e) Amendment Related to Section 116.--Section 409A(b)(3)(A)(ii) of 
the 1986 Code <<NOTE: 26 USC 409A.>> is amended by inserting ``to an 
applicable covered employee'' after ``under the plan''.
SEC. 102. AMENDMENTS RELATED TO TITLE II.

    (a) Amendment Related to Sections 201 and 211.--Section 201(b)(2)(A) 
of the 2006 Act <<NOTE: 29 USC 1084 note.>> 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 <<NOTE: 29 USC 
                1082.>> is amended by striking ``the plan adopts'' and 
                inserting ``the plan sponsor adopts''.
                    (B) Section 305(b)(3)(C) of ERISA <<NOTE: 29 USC 
                1085.>> 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

[[Page 122 STAT. 5101]]

                      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 <<NOTE: 29 USC 
                1085.>> 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 <<NOTE: 29 USC 
                1132.>> 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 <<NOTE: 26 
                USC 432.>> 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.''.

[[Page 122 STAT. 5102]]

                    (D) Section 432(e) of the 1986 Code <<NOTE: 26 USC 
                432.>> 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):

[[Page 122 STAT. 5103]]

                    ``(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 <<NOTE: 26 
                USC 412.>> is amended by striking ``the plan adopts'' 
                and inserting ``the plan sponsor adopts''.
                    (I) Section 4971(g)(4) of the 1986 Code <<NOTE: 26 
                USC 4971.>> 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 <<NOTE: 26 USC 
                4971.>> is amended by striking ``Section 4971(c)(2) of 
                such Code'' and inserting ``Section 4971(e)(2) of such 
                Code''.
                    (B) <<NOTE: Applicability. 26 USC 412 
                note.>> 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. 103. 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, <<NOTE: 26 USC 411 note.>> 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 <<NOTE: 29 USC 1055.>> 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 <<NOTE: 26 USC 417.>> is amended by striking 
                ``clause (ii)'' and inserting ``subparagraph (C)''.
                    (B)(i) Section 415(b)(2)(E)(v) of the 1986 
                Code <<NOTE: 26 USC 415.>> is amended to read as 
                follows:
                          ``(v) <<NOTE: Applicability.>> 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) <<NOTE: Effective date. 26 USC 415 
                note.>> Except as provided in subclause (II), the 
                amendment made by clause (i) shall apply to years 
                beginning after December 31, 2008.

[[Page 122 STAT. 5104]]

                    (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. 104. AMENDMENTS RELATED TO TITLE IV.

    (a) Amendment Related to Section 401.--Section 4006(a)(3)(A)(i) of 
ERISA <<NOTE: 29 USC 1306.>> is amended by striking ``1990'' and 
inserting ``2005''.

    (b) Amendment Related to Section 402.--Section 402(c)(1)(A) of the 
2006 Act <<NOTE: 26 USC 430 note.>> 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, <<NOTE: 29 USC 1344.>> is 
redesignated as subsection (f).

    (d) Amendments Related to Section 409.--Section 4041(b)(5)(A) of 
ERISA <<NOTE: 29 USC 1341.>> 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 <<NOTE: 29 USC 1350.>> 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. 105. AMENDMENTS RELATED TO TITLE V.

    (a) Amendment Related to Section 501.--Section 101(f)(2)(B)(ii) of 
ERISA <<NOTE: 29 USC 1021.>> 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).''.

[[Page 122 STAT. 5105]]

            (2) Section 4221 of ERISA <<NOTE: 29 USC 1401.>> 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 <<NOTE: 29 USC 
                1024.>> 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 <<NOTE: 29 USC 1021 note.>> 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 <<NOTE: 29 USC 1310.>> 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 <<NOTE: 29 USC 
        1341.>> 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 <<NOTE: 29 USC 
        1342.>> 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 <<NOTE: 29 USC 1059.>> 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). <<NOTE: Records. Reports.>> 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 <<NOTE: 29 USC 1021.>> 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.''.

[[Page 122 STAT. 5106]]

SEC. 106. AMENDMENTS RELATED TO TITLE VI.

    (a) Amendments Related to Section 601.--
            (1) Amendments to erisa.--
                    (A) Section 408(g)(3)(D)(ii) of ERISA <<NOTE: 29 USC 
                1108.>> 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, <<NOTE: 26 
                USC 4975.>> 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 <<NOTE: 26 USC 4975 note.>> 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) <<NOTE: 29 
        USC 1108.>> of ERISA is amended by striking ``or less''.
            (2) Amendments to 1986 code.--Section 4975(d) of the 1986 
        Code <<NOTE: 26 USC 4975.>> 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

[[Page 122 STAT. 5107]]

            (2) inserting ``of such Act'' after ``section 407(d)(2)''.

    (d) Amendments Related to Section 624.--Section 404(c)(5) of 
ERISA <<NOTE: 29 USC 1104.>> is amended by striking ``participant'' each 
place it appears and inserting ``participant or beneficiary''.
SEC. 107. AMENDMENTS RELATED TO TITLE VII.

    (a) Amendments to ERISA.--
            (1) Section 203(f)(1)(B) of ERISA <<NOTE: 29 USC 1053.>> 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 <<NOTE: 29 USC 1054.>> 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 <<NOTE: 26 USC 
        411.>> 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 <<NOTE: 26 USC 411 
        note.>> is amended by striking ``204(g)'' and inserting 
        ``205(g)''.

[[Page 122 STAT. 5108]]

            (2) Section 701(e) of the 2006 Act <<NOTE: 26 USC 411.>> 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) <<NOTE: Applicability.>> 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. 108. AMENDMENTS RELATED TO TITLE VIII.

    (a) Amendments Related to Section 801.--
            (1) Section 404(o) of the 1986 Code <<NOTE: 26 USC 404.>> 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) <<NOTE: Applicability.>> 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.

[[Page 122 STAT. 5109]]

                      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, <<NOTE: 26 USC 408A.>> 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 <<NOTE: 26 USC 72.>> is amended by 
inserting ``on or'' before ``before''.

    (f) Amendments Related to Section 829.--
            (1) Section 402(c)(11) of the 1986 Code <<NOTE: 26 USC 
        402.>> 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) <<NOTE: Effective date. 26 USC 402 note.>> The 
        amendments made by this paragraph shall apply with respect to 
        plan years beginning after December 31, 2009.

    (g) Amendment Related to Section 832.--Section 415(f) of the 1986 
Code <<NOTE: 26 USC 415.>> 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

[[Page 122 STAT. 5110]]

                    (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 <<NOTE: 26 USC 
        420.>> 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 <<NOTE: 26 USC 
        4980.>> 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 <<NOTE: 26 USC 402.>> 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 <<NOTE: 26 USC 
        3121.>> is amended by striking ``or special trial judge''.
            (2) Section 210(a)(5)(E) of the Social Security 
        Act <<NOTE: 42 USC 410.>> is amended by striking ``or special 
        trial judge''.

    (l) Amendments <<NOTE: Applicability.>> Related to Section 856.--
Section 856 of the 2006 Act, <<NOTE: 26 USC 7443B and note.>> 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 <<NOTE: 26 USC 3401 note.>> is amended by striking 
``Reconciliation''.

[[Page 122 STAT. 5111]]

SEC. 109. AMENDMENTS RELATED TO TITLE IX.

    (a) Amendment Related to Section 901.--Section 401(a)(35)(E)(iv) of 
the 1986 Code <<NOTE: 26 USC 401.>> 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 <<NOTE: 26 
        USC 411.>> 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 <<NOTE: 26 USC 
        402.>> is amended by inserting ``through the end of such taxable 
        year'' after ``such amount''.
            (4) Section 414(w)(3) of the 1986 Code <<NOTE: 26 USC 
        414.>> 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 <<NOTE: 29 
        USC 1060.>> is amended--
                    (A) by adding at the end of paragraph (1) the 
                following new sentence: ``In the case of a termination 
                of the defined

[[Page 122 STAT. 5112]]

                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 <<NOTE: 26 USC 
        415.>> is amended by striking ``paragraph (1)'' and inserting 
        ``paragraph (10)''.
            (2) Section 4021(b) of ERISA <<NOTE: 29 USC 1321.>> 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. 110. 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)(A) 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:
                    ``(i) 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.
                    ``(ii) The spouse or former spouse attains age 62.
                    ``(iii) The employee attains age 62 (or if deceased, 
                would have attained age 62).
            ``(B) 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.
            ``(C) 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) <<NOTE: 45 USC 231m note.>>  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) <<NOTE: 45 USC 231d note.>>  Subsection (a)(2).--The 
        amendment made by subsection (a)(2) shall take effect upon the 
        date of the enactment of this Act.

[[Page 122 STAT. 5113]]

SEC. 111. AMENDMENTS RELATED TO TITLE XI.

    (a) Amendment Related to Section 1104.--Section 1104(d)(1) of the 
2006 Act <<NOTE: 26 USC 457 note.>> 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 <<NOTE: 26 USC 3304.>> 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 <<NOTE: 29 USC 1002.>> 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. 112. <<NOTE: 26 USC 72 note.>> EFFECTIVE DATE.

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

                      Subtitle B--Other Provisions

SEC. 121. AMENDMENTS RELATED TO SECTIONS 102 AND 112 OF THE 
                        PENSION PROTECTION ACT OF 2006.

    (a) Amendment of ERISA.--The last sentence of section 303(g)(3)(B) 
of ERISA <<NOTE: 29 USC 1083.>> 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.''.

    (b) Amendment of 1986 Code.--The last sentence of section 
430(g)(3)(B) of the 1986 Code <<NOTE: 26 USC 430.>> 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

[[Page 122 STAT. 5114]]

but not in excess of the third segment rate applicable under subsection 
(h)(2)(C)(iii)), as specified by the Secretary.''.

    (c) <<NOTE: 26 USC 430 note.>>  Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the 2006 Act to which the amendments relate.
SEC. 122. MODIFICATION OF INTEREST RATE ASSUMPTION REQUIRED WITH 
                        RESPECT TO CERTAIN SMALL EMPLOYER PLANS.

    (a) In General.--Subparagraph (E) of section 415(b)(2) of the 1986 
Code <<NOTE: 26 USC 415.>> (relating to limitation on certain 
assumptions) is amended by adding at the end the following new clause:
                          ``(vi) <<NOTE: Applicability.>> In the case of 
                      a plan maintained by an eligible employer (as 
                      defined in section 408(p)(2)(C)(i)), clause (ii) 
                      shall be applied without regard to subclause (II) 
                      thereof.''.

    (b) <<NOTE: 26 USC 415 note.>> Effective Date.--The amendment made 
by this section shall apply to years beginning after December 31, 2008.
SEC. 123. DETERMINATION OF MARKET RATE OF RETURN FOR GOVERNMENTAL 
                        PLANS.

    (a) Amendment of ADEA.-- <<NOTE: Applicability.>> Section 
4(i)(10)(B)(i)(III) of the Age Discrimination in Employment Act of 1967 
(29 U.S.C. 623(i)(10)(B)(i)(III)) is amended by adding at the end the 
following: ``In the case of a governmental plan (as defined in the first 
sentence of section 414(d) of the Internal Revenue Code of 1986), a rate 
of return or a method of crediting interest established pursuant to any 
provision of Federal, State, or local law (including any administrative 
rule or policy adopted in accordance with any such law) shall be treated 
as a market rate of return for purposes of subclause (I) and a 
permissible method of crediting interest for purposes of meeting the 
requirements of subclause (I), except that this sentence shall only 
apply to a rate of return or method of crediting interest if such rate 
or method does not violate any other requirement of this Act.''.

    (b) Effective <<NOTE: 29 USC 623 note.>> Date.--The amendment made 
by this section shall take effect as if included in the provisions of 
the Pension Protection Act of 2006 to which such amendment relates.
SEC. 124. TREATMENT OF CERTAIN REIMBURSEMENTS FROM GOVERNMENTAL 
                        PLANS FOR MEDICAL CARE.

    (a) In General.--Section 105 of the 1986 Code <<NOTE: 26 USC 
105.>> (relating to amounts received under accident and health plans) is 
amended by adding at the end the following new subsection:

    ``(j) Special Rule for Certain Governmental Plans.--
            ``(1) In general.--For purposes of subsection (b), amounts 
        paid (directly or indirectly) to the taxpayer from an accident 
        or health plan described in paragraph (2) shall not fail to be 
        excluded from gross income solely because such plan, on or 
        before January 1, 2008, provides for reimbursements of health 
        care expenses of a deceased plan participant's beneficiary.
            ``(2) Plan described.--An accident or health plan is 
        described in this paragraph if such plan is funded by a medical 
        trust that is established in connection with a public retirement 
        system and that--
                    ``(A) has been authorized by a State legislature, or

[[Page 122 STAT. 5115]]

                    ``(B) has received a favorable ruling from the 
                Internal Revenue Service that the trust's income is not 
                includible in gross income under section 115.''.

    (b) Effective <<NOTE: 26 USC 105 note.>> Date.--The amendment made 
by subsection (a) shall apply to payments before, on, or after the date 
of the enactment of this Act.
SEC. 125. <<NOTE: 26 USC 408A note.>> ROLLOVER OF AMOUNTS RECEIVED 
                        IN AIRLINE CARRIER BANKRUPTCY TO ROTH 
                        IRAS.

    (a) General Rule.--If <<NOTE: Deadlines.>> a qualified airline 
employee receives any airline payment amount and transfers any portion 
of such amount to a Roth IRA within 180 days of receipt of such amount 
(or, if later, within 180 days of the date of the enactment of this 
Act), then such amount (to the extent so transferred) shall be treated 
as a qualified rollover contribution described in section 408A(e) of the 
Internal Revenue Code of 1986, and the limitations described in section 
408A(c)(3) of such Code shall not apply to any such transfer.

    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Airline payment amount.--
                    (A) In general.--The term ``airline payment amount'' 
                means any payment of any money or other property which 
                is payable by a commercial passenger airline carrier to 
                a qualified airline employee--
                          (i) under the approval of an order of a 
                      Federal bankruptcy court in a case filed after 
                      September 11, 2001, and before January 1, 2007, 
                      and
                          (ii) in respect of the qualified airline 
                      employee's interest in a bankruptcy claim against 
                      the carrier, any note of the carrier (or amount 
                      paid in lieu of a note being issued), or any other 
                      fixed obligation of the carrier to pay a lump sum 
                      amount.
                The amount of such payment shall be determined without 
                regard to any requirement to deduct and withhold tax 
                from such payment under sections 3102(a) and 3402(a).
                    (B) Exception.--An airline payment amount shall not 
                include any amount payable on the basis of the carrier's 
                future earnings or profits.
            (2) Qualified airline employee.--The term ``qualified 
        airline employee'' means an employee or former employee of a 
        commercial passenger airline carrier who was a participant in a 
        defined benefit plan maintained by the carrier which--
                    (A) is 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
                    (B) was terminated or became subject to the 
                restrictions contained in paragraphs (2) and (3) of 
                section 402(b) of the Pension Protection Act of 2006.
            (3) Reporting requirements.--If a commercial passenger 
        airline carrier pays 1 or more airline payment amounts, the 
        carrier shall, within 90 days of such payment (or, if later, 
        within 90 days of the date of the enactment of this Act), 
        report--
                    (A) to the Secretary of the Treasury, the names of 
                the qualified airline employees to whom such amounts 
                were paid, and

[[Page 122 STAT. 5116]]

                    (B) to the Secretary and to such employees, the 
                years and the amounts of the payments.
        Such reports shall be in such form, and contain such additional 
        information, as the Secretary may prescribe.

    (c) Effective Date.--This section shall apply to transfers made 
after the date of the enactment of this Act with respect to airline 
payment amounts paid before, on, or after such date.
SEC. 126. DETERMINATION OF ASSET VALUE FOR SPECIAL AIRLINE FUNDING 
                        RULES.

    (a) In General.--Section 402(e)(4)(C) of the 2006 Act <<NOTE: 26 USC 
430.>> is amended to read as follows:
                    ``(C) the value of plan assets shall be determined 
                under sections 303(g)(3) of such Act and 430(g)(3) of 
                such Code.''.

    (b) Effective <<NOTE: 26 USC 430 note.>> Date.--The amendment made 
by this section shall apply to plan years beginning after December 31, 
2007.
SEC. 127. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
                        RETURNS.

    (a) In General.--Section 6698(b)(1) of the 1986 Code <<NOTE: 26 USC 
6698.>> is amended by striking ``$85'' and inserting ``$89''.

    (b) Effective <<NOTE: 26 USC 6698 note.>> Date.--The amendment made 
by subsection (a) shall apply to returns required to be filed after 
December 31, 2008.
SEC. 128. MODIFICATION OF PENALTY FOR FAILURE TO FILE S 
                        CORPORATION RETURNS.

    (a) In General.--Section 6699(b)(1) of the 1986 Code <<NOTE: 26 USC 
6699.>> is amended by striking ``$85'' and inserting ``$89''.

    (b) Effective <<NOTE: 26 USC 6699 note.>> Date.--The amendment made 
by subsection (a) shall apply to returns required to be filed after 
December 31, 2008.

        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 <<NOTE: 26 USC 401.>> (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--

[[Page 122 STAT. 5117]]

                                    ``(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 <<NOTE: 26 USC 402.>> (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 <<NOTE: 26 USC 401 note.>> 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

[[Page 122 STAT. 5118]]

                      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 <<NOTE: 26 USC 430.>> 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 <<NOTE: 26 USC 430 note.>> 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. <<NOTE: 26 USC 436 note.>> TEMPORARY MODIFICATION OF 
                        APPLICATION OF LIMITATION ON BENEFIT 
                        ACCRUALS.

    In <<NOTE: Time period.>> 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. <<NOTE: 26 USC 432 note.>> 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) <<NOTE: Time period.>> 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 <<NOTE: Certification.>> 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)

[[Page 122 STAT. 5119]]

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) <<NOTE: Deadline.>> 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) <<NOTE: Deadlines.>> 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

[[Page 122 STAT. 5120]]

                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. <<NOTE: 26 USC 432 note.>> 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.

    Approved December 23, 2008.

LEGISLATIVE HISTORY--H.R. 7327:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 154 (2008):
            Dec. 10, considered and passed House.
            Dec. 11, considered and passed Senate.

                                  <all>
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