I 
112TH CONGRESS 
1ST SESSION H. R. 2656 
To amend the Internal Revenue Code of 1986 and the Employee Retirement 
Income Security Act of 1974 to make technical modifications relating 
to the Worker, Retiree, and Employer Recovery Act of 2008 and the 
Preservation of Access to Care for Medicare Beneficiaries and Pension 
Relief Act of 2010. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2011 
Mr. KIND (for himself, Mr. PETRI, and Mr. MCDERMOTT) introduced the fol-
lowing bill; which was referred to the Committee on Education and the 
Workforce, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 and the Em-
ployee Retirement Income Security Act of 1974 to make 
technical modifications relating to the Worker, Retiree, 
and Employer Recovery Act of 2008 and the Preserva-
tion of Access to Care for Medicare Beneficiaries and 
Pension Relief Act of 2010. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pension Technical 
Modifications Act’’. 
SEC. 2. ELECTIVE EXCLUSION OF PLAN INVESTMENT EX-
PENSES IN DETERMINING TARGET NORMAL 
COST. 
(a) 
AMENDMENT
TO
ERISA.—Section 
303(b)(1)(A)(ii) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1083(b)(1)(A)(ii)) is 
amended by inserting ‘‘(excluding, to the extent elected 
by the plan sponsor, plan investment expenses)’’ after 
‘‘plan year’’. 
(b) AMENDMENT TO 1986 CODE.—Clause (ii) of sec-
tion 430(b)(1)(A) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘(excluding, to the extent elected 
by the plan sponsor, plan investment expenses)’’ after 
‘‘plan year’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsections (a) and (b) shall take effect as if in-
cluded in sections 102 and 112, respectively, of the 
Pension Protection Act of 2006. 
(2) SPECIAL RULE FOR CLOSED PLAN YEARS.— 
In the case of a plan year ending before the date of 
the enactment of this Act, any election pursuant to 
the amendments made by this section with respect 
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to such plan year must be made not later than 180 
days after such date. 
SEC. 3. DEFINITION OF ELIGIBLE PLAN YEAR. 
(a) AMENDMENT TO ERISA.—Clause (v) of section 
303(c)(2)(D) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1083(c)(2)(D)), as added by 
section 201(a)(1) of the Preservation of Access to Care 
for Medicare Beneficiaries and Pension Relief Act of 2010, 
is amended— 
(1) by striking ‘‘on or after the date of the en-
actment of this subparagraph’’ and inserting ‘‘on or 
after June 25, 2010 (March 10, 2010, in the case 
of an eligible plan)’’, and 
(2) by adding at the end the following new sen-
tence: ‘‘For purposes of the preceding sentence, a 
plan shall be treated as an eligible plan only if, as 
of the date of the election with respect to the plan 
under clause (i)— 
‘‘(A) the plan sponsor is not a debtor in a 
case under title 11, United States Code, or 
similar Federal or State law, 
‘‘(B) there are no unpaid minimum re-
quired contributions with respect to the plan for 
purposes of section 4971 of the Internal Rev-
enue Code of 1986 (imposing an excise tax 
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when minimum required contributions are not 
paid by the due date for the plan year), 
‘‘(C) there are no outstanding liens in 
favor of the plan under subsection (k), and 
‘‘(D) the plan sponsor has not initiated a 
distress termination of the plan under section 
4041.’’. 
(b) AMENDMENT TO 1986 CODE.—Clause (v) of sec-
tion 430(c)(2)(D) of the Internal Revenue Code of 1986, 
as added by section 201(b)(1) of the Preservation of Ac-
cess to Care for Medicare Beneficiaries and Pension Relief 
Act of 2010, is amended— 
(1) by striking ‘‘on or after the date of the en-
actment of this subparagraph’’ and inserting ‘‘on or 
after June 25, 2010 (March 10, 2010, in the case 
of an eligible plan)’’, and 
(2) by adding at the end the following new sen-
tence: ‘‘For purposes of the preceding sentence, a 
plan shall be treated as an eligible plan only if, as 
of the date of the election with respect to the plan 
under clause (i)— 
‘‘(A) the plan sponsor is not a debtor in a 
case under title 11, United States Code, or 
similar Federal or State law, 
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‘‘(B) there are no unpaid minimum re-
quired contributions with respect to the plan for 
purposes of section 4971 (imposing an excise 
tax when minimum required contributions are 
not paid by the due date for the plan year), 
‘‘(C) there are no outstanding liens in 
favor of the plan under subsection (k), and 
‘‘(D) the plan sponsor has not initiated a 
distress termination of the plan under section 
4041 of the Employee Retirement Income Secu-
rity Act of 1974.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the amend-
ments made by the provisions of the Preservation of Ac-
cess to Care for Medicare Beneficiaries and Pension Relief 
Act of 2010 to which the amendments relate. 
SEC. 4. ELIGIBLE CHARITY PLANS. 
(a) DEFINITION OF ELIGIBLE CHARITY PLANS.— 
Section 104(d) of the Pension Protection Act of 2006, as 
added by section 202(b) of the Preservation of Access to 
Care for Medicare Beneficiaries and Pension Relief Act 
of 2010, is amended— 
(1) by inserting ‘‘, if the plan sponsor so 
elects,’’ after ‘‘shall’’, and 
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(2) by adding at the end the following: ‘‘Any 
election made under the preceding sentence shall be 
made at such time and in such form and manner as 
shall be prescribed by the Secretary of the Treasury 
and, for elections with respect to plan years begin-
ning more than 1 year after the date of the enact-
ment of the Pension Technical Modifications Act, 
may be revoked only with the consent of the Sec-
retary.’’. 
(b) APPLICATION
OF NEW RULES
TO ELIGIBLE 
CHARITY PLANS.—Paragraph (2) of section 202(c) of the 
Preservation of Access to Care for Medicare Beneficiaries 
and Pension Relief Act of 2010 is amended to read as 
follows: 
‘‘(2) ELIGIBLE CHARITY PLANS.—The amend-
ments made by subsection (b) shall apply to plan 
years beginning after December 31, 2010, except 
that a plan sponsor may elect to apply such amend-
ments to plan years beginning after an earlier 
date.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Preservation of Access to Care for Medicare Bene-
ficiaries and Pension Relief Act of 2010 to which they re-
late. 
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SEC. 5. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITA-
TIONS. 
(a) LIMITATIONS ON BENEFIT ACCRUALS.—Section 
203 of the Worker, Retiree, and Employer Recovery Act 
of 2008 is amended— 
(1) by striking ‘‘the first plan year beginning 
during the period beginning on October 1, 2008, and 
ending on September 30, 2009’’ and inserting ‘‘any 
plan year beginning during the period beginning on 
October 1, 2008, and ending on December 31, 
2011’’; 
(2) by striking ‘‘substituting’’ and all that fol-
lows through ‘‘for such plan year’’ and inserting 
‘‘substituting for such percentage the plan’s ad-
justed funding target attainment percentage for the 
last plan year ending before September 30, 2009,’’; 
and 
(3) by striking ‘‘for the preceding plan year is 
greater’’ and inserting ‘‘for such last plan year is 
greater’’. 
(b) SOCIAL SECURITY LEVEL-INCOME OPTIONS.— 
(1) 
AMENDMENT
TO
ERISA.—Section 
206(g)(3)(E) of the Employee Retirement Income 
Security Act of 1974 is amended by adding at the 
end the following new sentence: ‘‘For purposes of 
applying clause (i) payments under a social security 
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leveling option shall be treated as not in excess of 
the monthly amount paid under a single life annuity 
(plus an amount not in excess of a social security 
supplement described in the last sentence of section 
204(b)(1)(G)).’’. 
(2) AMENDMENT
TO
1986
CODE.—Section 
436(d)(5) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
sentence: ‘‘For purposes of applying subparagraph 
(A) payments under a social security leveling option 
shall be treated as not in excess of the monthly 
amount paid under a single life annuity (plus an 
amount not in excess of a social security supplement 
described 
in 
the 
last 
sentence 
of 
section 
411(a)(9)).’’. 
(3) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall apply to annuity pay-
ments the annuity starting date for which oc-
curs on or after January 1, 2012. 
(B) PERMITTED
APPLICATION.—A plan 
shall not be treated as failing to meet the re-
quirements of sections 206(g) of the Employee 
Retirement Income Security Act of 1974 (as 
amended by this subsection) and section 436(d) 
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of the Internal Revenue Code of 1986 (as so 
amended) if the plan sponsor elects to apply the 
amendments made by this subsection to pay-
ments the annuity starting date for which oc-
curs during elected months prior to January 1, 
2012. 
(c) REPEAL OF RELATED PROVISIONS.—The provi-
sions of, and the amendments made by, section 203 of 
the Preservation of Access to Care for Medicare Bene-
ficiaries and Pension Relief Act of 2010 are repealed and 
the Employee Retirement Income Security Act of 1974, 
the Internal Revenue Code of 1986, and the Worker, Re-
tiree, and Employer Recovery Act of 2008 (Public Law 
110–458; 122 Stat. 5118) shall be applied as if such sec-
tion had never been enacted. 
(d) PLANS MAINTAINED BY CHARITIES.— 
(1) 
AMENDMENT
TO
ERISA.—Section 
303(f)(3)(D)(i) of the Employee Retirement and In-
come 
Security 
Act 
of 
1974 
(29 
U.S.C. 
1083(f)(3)(D)(i)) is amended by striking ‘‘Sep-
tember 1, 2011’’ and inserting ‘‘January 1, 2012’’. 
(2) AMENDMENT TO 1986 CODE.—Clause (i) of 
section 430(f)(3)(D) of the Internal Revenue Code 
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of 1986 is amended by striking ‘‘September 1, 
2011’’ and inserting ‘‘January 1, 2012’’. 
Æ 
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