tired 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 dis-
tribution;’’, 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 ‘‘sub-
paragraph’’, 
(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 title, the amend-
ments made by this title shall take effect as if included 
in the provisions of the 2006 Act to which the amend-
ments relate.
TITLE II—OTHER PROVISIONS 
SEC. 201. 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 fol-
lows: ‘‘Any such averaging shall be adjusted for contribu-
tions, 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 de-
termined 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.’’. 
(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. 202. 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 cer-
tain 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 sec-
tion 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, 2007. 
SEC. 203. 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 Employ-
ment 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 estab-
lished 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. 204. TREATMENT OF CERTAIN REIMBURSEMENTS 
FROM GOVERNMENTAL PLANS FOR MEDICAL 
CARE. 
(a) IN GENERAL.—Section 105 of the 1986 Code (re-
lating 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 tax-
payer 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 con-
nection with a public retirement system and that— 
‘‘(A) has been authorized by a State legis-
lature, or 
‘‘(B) has received a favorable ruling from 
the Internal Revenue Service that the trust’s in-
come 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. 205. 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 pur-
poses of this section— 
(1) AIRLINE PAYMENT AMOUNT.— 
(A) IN GENERAL.—The term ‘‘airline pay-
ment amount’’ means any payment of any 
money or other property which is payable by a 
commercial passenger airline carrier to a quali-
fied airline employee— 
(i) under the approval of an order of 
a Federal bankruptcy court in a case filed 
after September 11, 2001, and before Jan-
uary 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 deter-
mined without regard to any requirement to de-
duct and withhold tax from such payment 
under sections 3102(a) and 3402(a).
(B) to the Secretary and to such employ-
ees, the years and the amounts of the pay-
ments. 
Such reports shall be in such form, and contain such 
additional information, as the Secretary may pre-
scribe. 
(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. 206. MODIFICATION OF PENALTY FOR FAILURE TO 
FILE PARTNERSHIP RETURNS. 
Section 6698 of the 1986 Code is amended by adding 
at the end the following new subsection: 
‘‘(e) MODIFICATIONS.—In the case of any return re-
quired to be filed after December 31, 2008, the dollar 
amount in effect under subsection (b)(1) shall be increased 
by $4.’’. 
SEC. 207. MODIFICATION OF PENALTY FOR FAILURE TO 
FILE S CORPORATION RETURNS. 
Section 6699 of the 1986 Code is amended by adding 
at the end the following new subsection: 
‘‘(e) MODIFICATIONS.—In the case of any return re-
quired to be filed after December 31, 2008, the dollar
amount in effect under subsection (b)(1) shall be increased 
by $4.’’. 
Passed the House of Representatives July 9, 2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 6382 
AN ACT 
To make technical corrections related to the Pen-
sion Protection Act of 2006, and for other pur-
poses.