PUBLIC LAW 110–458—DEC. 23, 2008 

WORKER, RETIREE, AND EMPLOYER 

RECOVERY ACT OF 2008 


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122 STAT. 5092 PUBLIC LAW 110–458—DEC. 23, 2008 

Public Law 110–458 

110th Congress 

An Act 

To make technical corrections related to the Pension Protection Act of 2006, and 

for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT 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. 

29 USC 1001 

note. 

Worker, Retiree, 

and Employer 

Recovery Act of 

2008. 

Dec. 23, 2008 

[H.R. 7327] 


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PUBLIC LAW 110–458—DEC. 23, 2008 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. 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 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) 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 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 

29 USC 1083. 

26 USC 412. 

29 USC 1082. 

26 USC 72 note. 


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122 STAT. 5094 PUBLIC LAW 110–458—DEC. 23, 2008 

‘‘(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 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.’’, 

29 USC 1083. 


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PUBLIC LAW 110–458—DEC. 23, 2008 122 STAT. 5095 

(ii) by adding at the end of subparagraph (E) the 

following new clause: 

‘‘(iii) PLAN WITH ALTERNATE VALUATION DATE.— 

The Secretary of the Treasury shall prescribe regulations for the application of this paragraph in the case 

of a plan which has a valuation date other than the 

first day of the plan year.’’, and 

(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 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 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), 

26 USC 430. 

29 USC 1083. 

Regulations. 


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122 STAT. 5096 PUBLIC LAW 110–458—DEC. 23, 2008 

(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 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 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 DATES.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), the amendments made by paragraphs (1)(A), (1)(F)(i), 

26 USC 430 note. 

Regulations. 

26 USC 430. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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 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 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 is amended— 26 USC 436. 

29 USC 1132. 

29 USC 1056. 

29 USC 1021. 


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122 STAT. 5098 PUBLIC LAW 110–458—DEC. 23, 2008 

(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 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 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.— 

29 USC 1023. (A) Section 103(d) of ERISA is amended— 

29 USC 1021; 

26 USC 436 note. 

26 USC 436. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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 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 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 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 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 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.’’. 

Applicability. 

26 USC 401 note. 

26 USC 4971. 

26 USC 414. 

26 USC 411. 

26 USC 401. 

29 USC 1371. 


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122 STAT. 5100 PUBLIC LAW 110–458—DEC. 23, 2008 

(e) AMENDMENT RELATED TO SECTION 116.—Section 

409A(b)(3)(A)(ii) of the 1986 Code is amended by inserting ‘‘to 

an applicable covered employee’’ after ‘‘under the plan’’. 

SEC. 102. AMENDMENTS RELATED TO TITLE II. 

(a) AMENDMENT RELATED TO SECTIONS 201 AND 211.—Section 

201(b)(2)(A) of the 2006 Act is amended by striking ‘‘has not used’’ 

and inserting ‘‘has not adopted, or ceased using,’’. 

(b) AMENDMENTS RELATED TO SECTIONS 202 AND 212.— 

(1) AMENDMENTS TO ERISA.— 

(A) Section 302(b)(3) of ERISA is amended by striking 

‘‘the plan adopts’’ and inserting ‘‘the plan sponsor adopts’’. 

(B) Section 305(b)(3)(C) of ERISA 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 

29 USC 1085. 

29 USC 1082. 

29 USC 1084 

note. 

26 USC 409A. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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 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 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.’’. 

26 USC 432. 

29 USC 1132. 

29 USC 1085. 


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122 STAT. 5102 PUBLIC LAW 110–458—DEC. 23, 2008 

(D) Section 432(e) of the 1986 Code 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): 

26 USC 432. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 is amended 

by striking ‘‘the plan adopts’’ and inserting ‘‘the plan 

sponsor adopts’’. 

(I) Section 4971(g)(4) of the 1986 Code 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 is amended by 

striking ‘‘Section 4971(c)(2) of such Code’’ and inserting 

‘‘Section 4971(e)(2) of such Code’’. 

(B) 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, 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 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 is amended 

by striking ‘‘clause (ii)’’ and inserting ‘‘subparagraph (C)’’. 

(B)(i) Section 415(b)(2)(E)(v) of the 1986 Code is 

amended to read as follows: 

‘‘(v) 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) Except as provided in subclause (II), the amendment made by clause (i) shall apply to years beginning 

after December 31, 2008. 

Effective date. 

26 USC 415 note. 

Applicability. 

26 USC 415. 

26 USC 417. 

29 USC 1055. 

26 USC 411 note. 

Applicability. 

26 USC 412 note. 

26 USC 4971. 

26 USC 4971. 

26 USC 412. 


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122 STAT. 5104 PUBLIC LAW 110–458—DEC. 23, 2008 

(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 is amended by striking ‘‘1990’’ and 

inserting ‘‘2005’’. 

(b) AMENDMENT RELATED TO SECTION 402.—Section 402(c)(1)(A) 

of the 2006 Act 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, is redesignated as subsection (f). 

(d) AMENDMENTS RELATED TO SECTION 409.—Section 

4041(b)(5)(A) of ERISA 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 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 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).’’. 

29 USC 1021. 

29 USC 1350. 

29 USC 1341. 

29 USC 1344. 

26 USC 430 note. 

29 USC 1306. 


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PUBLIC LAW 110–458—DEC. 23, 2008 122 STAT. 5105 

(2) Section 4221 of ERISA 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 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 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 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 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 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 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). 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 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.’’. 

29 USC 1021. 

Records. 

Reports. 

29 USC 1059. 

29 USC 1342. 

29 USC 1341. 

29 USC 1310. 

29 USC 1021 

note. 

29 USC 1024. 

29 USC 1401. 


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122 STAT. 5106 PUBLIC LAW 110–458—DEC. 23, 2008 

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 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, 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 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) of ERISA 

is amended by striking ‘‘or less’’. 

(2) AMENDMENTS TO 1986 CODE.—Section 4975(d) of the 

1986 Code 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 

26 USC 4975. 

29 USC 1108. 

26 USC 4975 

note. 

26 USC 4975. 

29 USC 1108. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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 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 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 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 is amended by striking 

‘‘204(g)’’ and inserting ‘‘205(g)’’. 

26 USC 411 note. 

26 USC 411. 

29 USC 1054. 

29 USC 1053. 

29 USC 1104. 


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122 STAT. 5108 PUBLIC LAW 110–458—DEC. 23, 2008 

(2) Section 701(e) of the 2006 Act 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) 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 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) 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. 

Applicability. 

26 USC 404. 

Applicability. 

26 USC 411. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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, 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 is amended by inserting ‘‘on or’’ 

before ‘‘before’’. 

(f) AMENDMENTS RELATED TO SECTION 829.— 

(1) Section 402(c)(11) of the 1986 Code 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) 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 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 

26 USC 415. 

Effective date. 

26 USC 402 note. 

26 USC 402. 

26 USC 72. 

26 USC 408A. 


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122 STAT. 5110 PUBLIC LAW 110–458—DEC. 23, 2008 

(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 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 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 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 is amended by 

striking ‘‘or special trial judge’’. 

(2) Section 210(a)(5)(E) of the Social Security Act is 

amended by striking ‘‘or special trial judge’’. 

(l) AMENDMENTS RELATED TO SECTION 856.—Section 856 of 

the 2006 Act, and the amendments made by such section, are 

hereby repealed, and the Internal Revenue Code of 1986 shall 

be applied and administered as if such sections and amendments 

had not been enacted. 

(m) AMENDMENT RELATED TO SECTION 864.—Section 864(a) 

26 USC 3401 of the 2006 Act is amended by striking ‘‘Reconciliation’’. 

note. 

26 USC 7443B 

and note. 

Applicability. 

42 USC 410. 

26 USC 3121. 

26 USC 402. 

26 USC 4980. 

26 USC 420. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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 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 is amended 

by inserting ‘‘through the end of such taxable year’’ after ‘‘such 

amount’’. 

(4) Section 414(w)(3) of the 1986 Code 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 is 

amended— 

(A) by adding at the end of paragraph (1) the following 

new sentence: ‘‘In the case of a termination of the defined 

29 USC 1060. 

26 USC 414. 

26 USC 402. 

26 USC 411. 

26 USC 401. 


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122 STAT. 5112 PUBLIC LAW 110–458—DEC. 23, 2008 

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 is amended by 

striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (10)’’. 

(2) Section 4021(b) of ERISA is amended by inserting ‘‘or’’ 

at the end of paragraph (12), by striking ‘‘; or’’ at the end 

of paragraph (13) and inserting a period, and by striking paragraph (14). 

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) 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) SUBSECTION (a)(2).—The amendment made by subsection (a)(2) shall take effect upon the date of the enactment 

of this Act. 

45 USC 231d 

note. 

45 USC 231m 

note. 

29 USC 1321. 

26 USC 415. 


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PUBLIC LAW 110–458—DEC. 23, 2008 122 STAT. 5113 

SEC. 111. AMENDMENTS RELATED TO TITLE XI. 

(a) AMENDMENT RELATED TO SECTION 1104.—Section 1104(d)(1) 

of the 2006 Act is amended by striking ‘‘Act’’ the first place it 

appears and inserting ‘‘section’’. 

(b) AMENDMENTS RELATED TO SECTION 1105.—Section 3304(a) 

of the 1986 Code 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 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. 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 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 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 

26 USC 430. 

29 USC 1083. 

26 USC 72 note. 

29 USC 1002. 

26 USC 3304. 

26 USC 457 note. 


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122 STAT. 5114 PUBLIC LAW 110–458—DEC. 23, 2008 

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

(c) 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 (relating to limitation on certain assumptions) is 

amended by adding at the end the following new clause: 

‘‘(vi) 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) 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.—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 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 (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 

26 USC 105. 

29 USC 623 note. 

Applicability. 

26 USC 415 note. 

Applicability. 

26 USC 415. 

26 USC 430 note. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 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. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 

BANKRUPTCY TO ROTH IRAS. 

(a) GENERAL RULE.—If 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 

Deadlines. 

26 USC 408A 

note. 

26 USC 105 note. 


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122 STAT. 5116 PUBLIC LAW 110–458—DEC. 23, 2008 

(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 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 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 is 

amended by striking ‘‘$85’’ and inserting ‘‘$89’’. 

(b) EFFECTIVE 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 is 

amended by striking ‘‘$85’’ and inserting ‘‘$89’’. 

(b) EFFECTIVE 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 (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— 

26 USC 401. 

26 USC 6699 

note. 

26 USC 6699. 

26 USC 6698 

note. 

26 USC 6698. 

26 USC 430 note. 

26 USC 430. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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 (defining eligible rollover distribution) is amended by adding at the end the following new 

flush sentence: 

‘‘If all or any portion of a distribution during 2009 is treated 

as an eligible rollover distribution but would not be so treated 

if the minimum distribution requirements under section 

401(a)(9) had applied during 2009, such distribution shall not 

be treated as an eligible rollover distribution for purposes of 

section 401(a)(31) or 3405(c) or subsection (f) of this section.’’. 

(c) EFFECTIVE DATES.— 

(1) IN GENERAL.—The amendments made by this section 

shall apply for calendar years beginning after December 31, 

2008. 

(2) PROVISIONS RELATING TO PLAN OR CONTRACT AMENDMENTS.— 

(A) IN GENERAL.—If this paragraph applies to any pension plan or contract amendment, such pension plan or 

contract shall not fail to be treated as being operated 

in accordance with the terms of the plan during the period 

described in subparagraph (B)(ii) solely because the plan 

operates in accordance with this section. 

(B) AMENDMENTS TO WHICH PARAGRAPH APPLIES.— 

(i) IN GENERAL.—This paragraph shall apply to 

any amendment to any pension plan or annuity contract which— 

(I) is made pursuant to the amendments made 

by this section, and 

(II) is made on or before the last day of the 

first plan year beginning on or after January 1, 

2011. 

In the case of a governmental plan, subclause (II) 

shall be applied by substituting ‘‘2012’’ for ‘‘2011’’. 

(ii) CONDITIONS.—This paragraph shall not apply 

to any amendment unless during the period beginning 

on the effective date of the amendment and ending 

on December 31, 2009, the plan or contract is operated 

as if such plan or contract amendment were in effect. 

SEC. 202. TRANSITION RULE CLARIFICATION. 

(a) AMENDMENT TO ERISA.—Subparagraph (B) of section 

303(c)(5) of the Employee Retirement Income Security Act of 1974 

(29 U.S.C. 1083(c)(5)) is amended— 

(1) by striking clause (iii) and redesignating clause (iv) 

as clause (iii); and 

(2) by striking clause (i) and inserting the following: 

‘‘(i) IN GENERAL.—Except as provided in clause 

(iii), in the case of plan years beginning after 2007 

26 USC 401 note. 

26 USC 402. 


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122 STAT. 5118 PUBLIC LAW 110–458—DEC. 23, 2008 

and before 2011, only the applicable percentage of the 

funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for 

purposes of paragraph (3)(A) and subparagraph (A).’’. 

(b) AMENDMENT TO 1986 CODE.—Subparagraph (B) of section 

430(c)(5) of the Internal Revenue Code of 1986 is amended— 

(1) by striking clause (iii) and redesignating clause (iv) 

as clause (iii); and 

(2) by striking clause (i) and inserting the following: 

‘‘(i) IN GENERAL.—Except as provided in clause 

(iii), in the case of plan years beginning after 2007 

and before 2011, only the applicable percentage of the 

funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for 

purposes of paragraph (3)(A) and subparagraph (A).’’. 

(c) EFFECTIVE DATE.—The amendments made by subsections 

(a) and (b) shall apply as if included in the enactment of sections 

102 and 112, respectively, of the Pension Protection Act of 2006. 

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

In the case of the first plan year beginning during the period 

beginning on October 1, 2008, and ending on September 30, 2009, 

sections 206(g)(4)(A) of the Employee Retirement Income Security 

Act of 1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal 

Revenue Code of 1986 shall be applied by substituting the plan’s 

adjusted funding target attainment percentage for the preceding 

plan year for such percentage for such plan year but only if the 

adjusted funding target attainment percentage for the preceding 

plan year is greater. 

SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTIEMPLOYER 

PLANS AS IN ENDANGERED OR CRITICAL STATUS. 

(a) IN GENERAL.—Notwithstanding the actuarial certification 

under section 305(b)(3) of the Employee Retirement Income Security 

Act of 1974 and section 432(b)(3) of the Internal Revenue Code 

of 1986, if a plan sponsor of a multiemployer plan elects the application of this section, then, for purposes of section 305 of such Act 

and section 432 of such Code— 

(1) the status of the plan for its first plan year beginning 

during the period beginning on October 1, 2008, and ending 

on September 30, 2009, shall be the same as the status of 

such plan under such sections for the plan year preceding 

such plan year, and 

(2) in the case of a plan which was in endangered or 

critical status for the preceding plan year described in paragraph (1), the plan shall not be required to update its plan 

or schedules under section 305(c)(6) of such Act and section 

432(c)(6) of such Code, or section 305(e)(3)(B) of such Act and 

section 432(e)(3)(B) of such Code, whichever is applicable, until 

the plan year following the first plan year described in paragraph (1). 

If section 305 of the Employee Retirement Income Security Act 

of 1974 and section 432 of the Internal Revenue Code of 1986 

did not apply to the preceding plan year described in paragraph 

(1), the plan actuary shall make a certification of the status of 

the plan under section 305(b)(3) of such Act and section 432(b)(3) 

Certification. 

Time period. 

26 USC 432 note. 

Time period. 

26 USC 436 note. 

26 USC 430 note. 

26 USC 430. 


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PUBLIC LAW 110–458—DEC. 23, 2008 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) after such date, be submitted to the Secretary 

or the Secretary’s delegate not later than 30 days 

after the date of the election. 

(2) NOTICE TO PARTICIPANTS.— 

(A) IN GENERAL.—Notwithstanding section 305(b)(3)(D) 

of such Act and section 431(b)(3)(D) of such Code, if the 

plan is neither in endangered nor critical status by reason 

of an election made under subsection (a)— 

(i) the plan sponsor of a multiemployer plan shall 

not be required to provide notice under such sections, 

and 

(ii) the plan sponsor shall provide to the participants and beneficiaries, the bargaining parties, the 

Pension Benefit Guaranty Corporation, and the Secretary of Labor a notice of the election and such other 

information as the Secretary of the Treasury (in consultation with the Secretary of Labor) may require— 

(I) if the election is made before the date the 

annual certification is submitted to the Secretary 

or the Secretary’s delegate under section 305(b)(3) 

of such Act and section 432(b)(3) of such Code, 

not later than 30 days after the date of the certification, and 

(II) if the election is made after such date, 

not later than 30 days after the date of the election. 

(B) NOTICE OF ENDANGERED STATUS.—Notwithstanding 

section 305(b)(3)(D) of such Act and section 431(b)(3)(D) 

of such Code, if the plan is certified to be in critical status 

for any plan year but is in endangered status by reason 

Deadlines. 

Deadline. 


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122 STAT. 5120 PUBLIC LAW 110–458—DEC. 23, 2008 

LEGISLATIVE HISTORY—H.R. 7327: 

CONGRESSIONAL RECORD, Vol. 154 (2008): 

Dec. 10, considered and passed House. 

Dec. 11, considered and passed Senate. 

Æ 

of an election made under subsection (a), the notice provided under such sections shall be the notice which would 

have been provided if the plan had been certified to be 

in endangered status. 

SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IMPROVEMENT 

AND REHABILITATION PERIODS FOR MULTIEMPLOYER 

PENSION PLANS IN CRITICAL AND ENDANGERED STATUS 

FOR 2008 OR 2009. 

(a) IN GENERAL.—If the plan sponsor of a multiemployer plan 

which is in endangered or critical status for a plan year beginning 

in 2008 or 2009 (determined after application of section 204) elects 

the application of this section, then, for purposes of section 305 

of the Employee Retirement Income Security Act of 1974 and section 

432 of the Internal Revenue Code of 1986— 

(1) except as provided in paragraph (2), the plan’s funding 

improvement period or rehabilitation period, whichever is 

applicable, shall be 13 years rather than 10 years, and 

(2) in the case of a plan in seriously endangered status, 

the plan’s funding improvement period shall be 18 years rather 

than 15 years. 

(b) DEFINITIONS AND SPECIAL RULES.—For purposes of this 

section— 

(1) ELECTION.—An election under this section shall be made 

at such time, and in such manner and form, as (in consultation 

with the Secretary of Labor) the Secretary of the Treasury 

or the Secretary’s delegate may prescribe. 

(2) DEFINITIONS.—Any term which is used in this section 

which is also used in section 305 of the Employee Retirement 

Income Security Act of 1974 and section 432 of the Internal 

Revenue Code of 1986 shall have the same meaning as when 

used in such sections. 

(c) EFFECTIVE DATE.—This section shall apply to plan years 

beginning after December 31, 2007. 

Approved December 23, 2008. 

26 USC 432 note. 


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