I 
110TH CONGRESS 
2D SESSION 
H. R. 6143 
To make technical corrections to the Pension Protection Act of 2006 relating 
to the Employee Retirement Income Security Act of 1974, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2008 
Mr. ANDREWS (for himself and Mr. GEORGE MILLER of California) introduced 
the following bill; which was referred to the Committee on Education and 
Labor, and in addition to the Committee on Ways and Means, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To make technical corrections to the Pension Protection Act 
of 2006 relating to the Employee Retirement Income 
Security Act of 1974, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Pension Protection Act ERISA Amendments of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
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Sec. 1. Short title and table of contents. 
TITLE I—WORKER PROTECTION MODIFICATIONS 
Sec. 101. Repeal of new rules for termination date in the case of bankruptcy 
of employer. 
Sec. 102. Age requirement for commercial airline pilots. 
Sec. 103. Pro-Rata Recovery under ERISA. 
Sec. 104. Correction of effective dates for collectively bargained plans. 
Sec. 105. Retiree health benefit protections in group health plans. 
TITLE II—MULTIEMPLOYER MODIFICATIONS 
Sec. 201. Crediting and termination of surcharges in connection with multiem-
ployer plan in critical status upon adoption of rehabilitation 
plan. 
Sec. 202. Schedules required to be provided by multiemployer plans in endan-
gered status. 
Sec. 203. Amendments to funding rules for multiemployer plans. 
TITLE III—SINGLE-EMPLOYER MODIFICATIONS 
Sec. 301. Asset smoothing. 
Sec. 302. Prohibited payments. 
Sec. 303. Clarification of age discrimination rules in connection with the Young 
Women’s Christian Association Pension Plan. 
Sec. 304. Prohibited transactions exemption for divestment of employer securi-
ties. 
Sec. 305. Special rule relating to at-risk status for employees offered early re-
tirement in 2006 or 2007. 
Sec. 306. Phase-in of funding target. 
TITLE IV—SMALL EMPLOYER MODIFICATIONS 
Sec. 401. Treatment of employees of certain cooperatives as affiliated service 
group employees. 
TITLE V—PROHIBITED TRANSACTIONS MODIFICATIONS 
Sec. 501. Clarification of parties in interest affected by prohibited transaction 
exemption for block trading. 
Sec. 502. Clarification of scope of prohibited transaction exemption for elec-
tronic communication networks. 
Sec. 503. Increase in maximum bond amount for plans holding employer securi-
ties. 
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TITLE I—WORKER PROTECTION 
MODIFICATIONS 
SEC. 101. REPEAL OF NEW RULES FOR TERMINATION DATE 
IN THE CASE OF BANKRUPTCY OF EM-
PLOYER. 
(a) IN GENERAL.—Section 404 of the Pension Pro-
tection Act of 2006 (Public Law 109–280; 120 Stat. 928) 
(including the amendments made thereby) is hereby re-
pealed. 
(b) EFFECTIVE DATE.—Subsection (a) shall be effec-
tive as if included in the enactment of the Pension Protec-
tion Act of 2006. 
SEC. 102. AGE REQUIREMENT FOR COMMERCIAL AIRLINE 
PILOTS. 
(a) SINGLE-EMPLOYER PLAN BENEFITS GUARAN-
TEED.—Section 4022(b)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is 
amended, in the flush matter following subparagraph (B), 
by adding at the end the following: ‘‘If, at the time of 
termination of a plan under this title or at the time of 
the freezing of benefit accruals under a plan pursuant to 
subsections (a)(1) and (b) of section 402 of the Pension 
Protection Act of 2006, regulations prescribed by the Fed-
eral Aviation Administration require an individual to sepa-
rate from service as a commercial airline pilot after attain-
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ing a specified age which is less than age 65, the first 
sentence of this paragraph shall be applied to an indi-
vidual who is a participant in the plan by reason of such 
service by substituting such age for age 65.’’. 
(b) AGGREGATE
LIMIT
ON
BENEFITS
GUARAN-
TEED.—Section 4022B(a) of such Act (29 U.S.C. 
1322b(a)) is amended by adding at the end the following: 
‘‘If, at the time of termination of a plan under this title 
or at the time of the freezing of benefit accruals under 
a plan pursuant to subsections (a)(1) and (b) of section 
402 of the Pension Protection Act of 2006, regulations 
prescribed by the Federal Aviation Administration require 
an individual to separate from service as a commercial air-
line pilot after attaining a specified age which is less than 
age 65, this subsection shall be applied to an individual 
who is a participant in the plan by reason of such service 
by substituting such age for age 65.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to benefits payable on or after the 
date of the enactment of this Act. 
SEC. 103. PRO-RATA RECOVERY UNDER ERISA. 
(a) IN GENERAL.—Section 502 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1132) 
is amended— 
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(a)) commenced on or after the date of the enactment of 
this Act. 
SEC. 104. CORRECTION OF EFFECTIVE DATES FOR COLLEC-
TIVELY BARGAINED PLANS. 
(a) PERIODIC PENSION BENEFIT STATEMENTS.— 
Section 508(c)(2) of the Pension Protection Act of 2006 
(Public Law 109–280; 120 Stat. 952) is amended— 
(1) by striking ‘‘paragraph (1) shall be applied 
to benefits pursuant to, and individuals covered by, 
any such agreement by substituting for ‘December 
31, 2006’ the earlier of’’ and inserting ‘‘the amend-
ments made by this section shall not apply to plan 
years beginning before the earlier of’’; and 
(2) in subparagraph (A)(i), by striking ‘‘Decem-
ber 31, 2007’’ and inserting ‘‘December 31, 2006’’. 
(b) REQUIREMENTS FOR EMPLOYER STOCK DIVER-
SIFICATION.—Section 901(c)(2) of the Pension Protection 
Act of 2006 (Public Law 109–280; 120 Stat. 1032) is 
amended— 
(1) by striking ‘‘paragraph (1) shall be applied 
to benefits pursuant to, and individuals covered by, 
any such agreement by substituting for ‘December 
31, 2006’ the earlier of’’ and inserting ‘‘the amend-
ments made by this section shall not apply to plan 
years beginning before the earlier of’’; and 
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(2) in subparagraph (A)(i), by striking ‘‘Decem-
ber 31, 2007’’ and inserting ‘‘December 31, 2006’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply as if included in the enactment 
of the Pension Protection Act of 2006. 
SEC. 105. RETIREE HEALTH BENEFIT PROTECTIONS IN 
GROUP HEALTH PLANS. 
(a) AMENDMENTS TO ERISA.— 
(1) IN GENERAL.—Subtitle B of title I of the 
Employee Retirement Income Security Act of 1974 
is amended by adding at the end a new part 8 as 
follows: 
‘‘PART 8—EMERGENCY RETIREE HEALTH 
BENEFIT PROTECTIONS 
‘‘SEC. 801. PROHIBITION AGAINST POST-RETIREMENT RE-
DUCTIONS OF RETIREE HEALTH BENEFITS 
BY GROUP HEALTH PLANS. 
‘‘(a) IN GENERAL.—Notwithstanding that a group 
health plan described in subsection (b) may contain a pro-
vision reserving the general power to amend or terminate 
the plan or a provision specifically authorizing the plan 
to make post-retirement reductions in retiree health bene-
fits, it shall be prohibited for any group health plan, 
whether through amendment or otherwise, to reduce the 
benefits provided to a retired participant or his or her ben-
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eficiary under the terms of the plan if such reduction of 
benefits occurs after the date the participant retired for 
purposes of the plan and reduces benefits that were pro-
vided to the participant, or his or her beneficiary, as of 
the date the participant retired. Any group health plan 
provision which purports to authorize the reduction of 
benefits in a manner inconsistent with the foregoing prohi-
bition shall be void as against public policy. 
‘‘(b) GROUP
HEALTH
PLAN.—The term ‘group 
health plan’ shall have the same meaning as in section 
607(1). 
‘‘(c) PROHIBITED REDUCTION
OF BENEFITS.—As 
used in this section, references to a prohibited reduction 
of benefits means any group health plan amendment or 
other action which has the effect of— 
‘‘(1) canceling, decreasing or limiting the 
amount, type, level, or form of any benefit or option 
provided prior to the amendment or action; 
‘‘(2) imposing or increasing the out-of-pocket 
costs a retired participant, or his or her beneficiary, 
must pay in order to keep or obtain any benefits 
that were provided to the participant or beneficiary 
prior to the amendment or action; or 
‘‘(3) modifying the manner by which medical 
services are delivered under the plan so that after 
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the amendment or action a retired participant, or 
his or her beneficiary, has less ready access to the 
delivery of any such medical services than the partic-
ipant or beneficiary had prior to the amendment or 
action. 
‘‘(d) TREATMENT OF PLAN TERMINATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
termination of a group health plan shall be treated 
as violating the prohibition contained in this section 
if, after the termination, the plan sponsor of the ter-
minated plan fails to continue to provide to the par-
ticipants who retired prior to the termination and to 
their beneficiaries the same retiree health benefits 
that were provided prior to the termination. 
‘‘(2) WAIVER.—Paragraph (1) shall not apply 
in the case of the termination of a group health plan 
if the Secretary issues a waiver under this para-
graph in connection with such termination. The Sec-
retary shall issue such a waiver if and only if the 
plan sponsor demonstrates to the satisfaction of the 
Secretary, in accordance with regulations prescribed 
by the Secretary, that such plan sponsor will be un-
able to continue in business unless such a waiver is 
issued. 
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‘‘(e) CONSENT
OR AUTHORIZATION
BY PARTICI-
PANT.—A reduction of benefits shall not be treated as pro-
hibited by this section if such reduction is consented to 
in writing by any retired participant or is authorized with 
respect to the retired participant under the terms of one 
or more agreements which the Secretary finds to be collec-
tive bargaining agreements between one or more employee 
representatives who were representing such participant at 
the time of the entry into such agreement and one or more 
employers. 
‘‘SEC. 802. ADOPTION BY GROUP HEALTH PLANS OF PROVI-
SION BARRING POST-RETIREMENT REDUC-
TIONS IN RETIREE HEALTH BENEFITS. 
‘‘Every group health plan shall contain a provision 
which expressly bars the plan, or any fiduciary of the plan, 
from reducing the benefits provided under the plan to a 
retired participant, or his or her beneficiary, if such reduc-
tion affects the benefits provided to the participant or ben-
eficiary as of the date the participant retired for purposes 
of the plan and such reduction occurs after the partici-
pant’s retirement. 
‘‘SEC. 803. RESTORATION BY GROUP HEALTH PLANS OF 
BENEFITS REDUCED AFTER RETIREMENT. 
‘‘(a) IN GENERAL.—The plan sponsor of each group 
health plan shall provide, in accordance with this section, 
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the option of benefit restoration to each retired participant 
that meets the following requirements: 
‘‘(1) The retired participant is entitled to ben-
efit coverage under the plan as of the date of enact-
ment of the Emergency Retiree Health Benefits Pro-
tection Act of 2007. 
‘‘(2) The amount, type, level, or form of any 
benefits or option provided to the retired participant 
under the plan as of the date the participant retired 
was reduced after the participant’s date of retire-
ment. For purposes of the preceding sentence, the 
term ‘reduced’ has the same meaning as in section 
801(c). 
‘‘(3) The retired participant has elected to re-
store benefits under the plan within the restoration 
period prescribed by subsection (c) and in accord-
ance with such procedures established by the plan 
pursuant to regulations of the Secretary. 
‘‘(b) EXCEPTION FOR CERTAIN PLANS.—In accord-
ance with regulations prescribed by the Secretary, sub-
section (a) shall not apply to any group health plan with 
less than 100 participants both on and after the date of 
enactment of the Emergency Retiree Health Benefits Pro-
tection Act of 2007. 
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‘‘(c) RESTORATION PERIOD.—The term ‘restoration 
period’ means the period which— 
‘‘(1) begins not later than 1 year after the date 
of enactment of the Emergency Retiree Health Ben-
efits Protection Act of 2007; 
‘‘(2) ends before 2 years from such date, unless 
extended by the Secretary pursuant to section 
804(g); and 
‘‘(3) is of no less than 60 days duration. 
‘‘(d) NOTICE REQUIREMENTS CONCERNING RES-
TORATION OF BENEFITS.—In accordance with regulations 
prescribed by the Secretary, each group health plan sub-
ject to the requirements of subsection (a) shall, within no 
less than 30 days prior to the commencement of the plan’s 
restoration of benefits period, provide written notice to 
each retired participant of the plan who meets the require-
ments of subsection (a) of the following: 
‘‘(1) A description of all benefits the retired 
participant is entitled to have restored. 
‘‘(2) The administrative procedure established 
under the plan which may be used to submit a claim 
for the restoration of any benefits. 
‘‘(3) An itemization of the value of each benefit 
the retired participant is entitled to have restored, 
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as determined in accordance with regulations of the 
Secretary, and the total value of all such benefits. 
‘‘(4) A description of any post-retirement in-
creases in retiree health benefits the retired partici-
pant received which the plan sponsor could rescind 
if the retired participant asserts a claim for the res-
toration of benefits. 
‘‘(5) An itemization of the value of each retiree 
health benefit the plan sponsor could rescind, as de-
termined in accordance with regulations of the Sec-
retary, and the total value of all such benefits. 
‘‘(6) If the plan sponsor has filed an application 
for a substantial business hardship exemption under 
section 804, the date such application was filed, the 
date notice of such application was given to retired 
participants entitled to submit a claim for the res-
toration of benefits, and the status of such applica-
tion as of the date of the notice sent pursuant to 
this subsection. 
‘‘(7) Such other information in such form and 
detail as may be prescribed by the Secretary to carry 
out the purposes of this part. 
‘‘(e) DEADLINE FOR RESTORATION OF BENEFITS.— 
Regardless of any extension that may be granted by the 
Secretary pursuant to section 804(g), all benefits required 
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to be restored under this section shall be restored within 
no more than 3 years from the date of enactment of the 
Emergency Retiree Health Benefits Protection Act of 
2007, or the date the plan sponsor files an application for 
an exemption under section 804, whichever comes last. 
‘‘SEC. 804. EXEMPTION FROM RESTORATION OF BENEFITS 
REQUIREMENTS. 
‘‘(a) APPLICATION
FOR
EXEMPTION.—Any plan 
sponsor of a group health plan that would sustain substan-
tial business hardship if required to fulfill, in whole or in 
part, the restoration of benefits requirements contained in 
section 803, may file an application for an exemption with 
the Secretary from any or all of such requirements. 
‘‘(b) AUTHORITY FOR WAIVER OR VARIANCE.—In re-
sponse to an application filed by a plan sponsor pursuant 
to subsection (a), the Secretary may waive or vary the re-
quirements of section 803 with respect to any or all of 
such requirements, including postponing for reasonable 
periods of time the obligation of the plan sponsor to re-
store reduced benefits, if the Secretary finds that compli-
ance by the plan sponsor with the requirements of section 
803 would— 
‘‘(1) be adverse to the interests of plan partici-
pants in the aggregate; 
‘‘(2) not be administratively feasible; and 
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‘‘(3) cause substantial business hardship to the 
plan sponsor. 
‘‘(c) FACTORS TAKEN INTO ACCOUNT.—For pur-
poses of this section, the factors to be taken into account 
in determining substantial business hardship shall include 
(but shall not be limited to) whether— 
‘‘(1) the plan sponsor is operating at an eco-
nomic loss; 
‘‘(2) compliance with the restoration of benefits 
requirements would necessitate substantial future re-
ductions in health benefits provided to participants 
under the plan or cause a substantial decline in em-
ployment with the plan sponsor; 
‘‘(3) it is reasonable to expect that the plan will 
be continued only if a waiver or appropriate variance 
is granted; and 
‘‘(4) the provisions of the Retiree Health Loan 
Guarantee Program established under section 805 
are unavailable to the plan sponsor submitting the 
application, or, if available, still would not provide a 
sufficient basis for denying a waiver or variance. 
‘‘(d) REQUIREMENT OF SATISFACTORY EVIDENCE.— 
‘‘(1) IN GENERAL.—The Secretary shall, before 
granting a waiver or variance under this section, re-
quire each applicant to provide evidence satisfactory 
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to the Secretary that the applicant has provided 
timely written notice of the filing of an application 
for such waiver or variance to each retired partici-
pant entitled to submit a claim for the restoration 
of benefits under the applicant’s plan. 
‘‘(2) TIMELINESS.—For purposes of paragraph 
(1), a written notice shall be considered timely if it 
is provided not later than 60 days prior to the date 
the plan sponsor files an application for a waiver or 
variance under this section. 
‘‘(3) INFORMATION REQUIRED.—The notice re-
ferred to in paragraph (1) shall include information 
with respect to the specific relief that will be sought 
by the plan sponsor’s application, the period of time 
for which relief is sought, and such other relevant 
information as the Secretary may prescribe. 
‘‘(e) PARTICIPATION IN PROCEEDINGS BY RETIRED 
PLAN PARTICIPANTS.—Each retired participant entitled 
to submit a claim for the restoration of benefits within 
the meaning of this section shall be provided a reasonable 
opportunity to submit comments or otherwise participate 
in any proceeding established by the Secretary to deter-
mine whether to grant or deny an application for a waiver 
or variance filed by the retired participant’s plan sponsor. 
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‘‘(f) EXCEPTION FOR CERTAIN APPLICATIONS.—The 
Secretary shall not be authorized to grant any application 
for a waiver or variance purporting to satisfy the require-
ments of subsection (b) if— 
‘‘(1) within the 5-year period preceding the date 
of the plan sponsor’s application the plan sponsor 
could have transferred excess pension assets to a 
health benefits account within the meaning of sec-
tion 420 of the Internal Revenue Code of 1986 (as 
in effect on the date of the enactment of the Tax 
Relief Extension Act of 1999) but failed to do so, 
and the plan sponsor is submitting an application on 
behalf of such retiree health account; or 
‘‘(2) the plan sponsor submitting the applica-
tion also maintains a fully funded pension plan with 
respect to which— 
‘‘(A) retired participants eligible to submit 
a claim for the restoration of benefits under 
section 803 are also eligible to receive ad hoc 
cost-of-living adjustment benefits; 
‘‘(B) the assets of the fully funded pension 
plan, over the past 5 years preceding the date 
of application for a waiver or variance, on aver-
age have exceeded 120 percent of the plan’s li-
abilities; 
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‘‘(C) the plan had no minimum funding re-
quirement to satisfy within the 5 years pre-
ceding the date of application for the waiver or 
variance and the plan sponsor submitting the 
application made no minimum funding con-
tribution to the fully funded pension plan dur-
ing such 5-year period; and 
‘‘(D) the plan sponsor submitting the ap-
plication for a waiver or variance failed to pro-
vide an ad hoc cost-of-living adjustment benefit 
from the fully funded pension plan during the 
5-year period preceding the date of application 
for the waiver or variance. 
‘‘(g) RUNNING
OF
RESTORATION
PERIOD
SUS-
PENDED.—The submission of an application for a waiver 
or variance pursuant to this section shall suspend the run-
ning of any relevant restoration period as specified in sub-
section (c). Where appropriate, the Secretary shall direct 
the reopening of any relevant restoration period upon the 
final conclusion of proceedings to determine whether an 
application should be granted or denied. 
‘‘SEC. 805. ESTABLISHMENT OF EMERGENCY RETIREE 
HEALTH LOAN GUARANTEE PROGRAM. 
‘‘(a) DEFINITIONS.—For purposes of this section— 
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‘‘(1) BOARD.—The term ‘Board’ means the 
Emergency Retiree Health Loan Guarantee Board 
established under subsection (c). 
‘‘(2) PROGRAM.—The term ‘Program’ means 
the Emergency Retiree Health Loan Guarantee Pro-
gram established under subsection (b). 
‘‘(3) ELIGIBLE PLAN SPONSOR.—The term ‘eli-
gible plan sponsor’ means any plan sponsor as de-
fined in section 3(16)(B) that maintains a group 
health plan subject to the retiree health benefits res-
toration requirements of section 803. 
‘‘(b) ESTABLISHMENT
OF EMERGENCY RETIREE 
HEALTH LOAN GUARANTEE PROGRAM.—There is estab-
lished the Retiree Health Loan Guarantee Program, to be 
administered by the Board, the purpose of which is to pro-
vide loan guarantees to eligible plan sponsors in accord-
ance with this section. 
‘‘(c) RETIREE HEALTH LOAN GUARANTEE BOARD 
MEMBERSHIP.—There is established a Retiree Health 
Loan Guarantee Board, which shall be composed of— 
‘‘(1) the Secretary of Labor, who shall serve as 
Chairman of the Board; 
‘‘(2) the Secretary of Commerce; 
‘‘(3) the Secretary of the Treasury; 
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‘‘(4) the Secretary of Health and Human Serv-
ices; and 
‘‘(5) the Chairman of the Council of Economic 
Advisers. 
‘‘(d) RETIREE HEALTH LOAN GUARANTEE PRO-
GRAM.— 
‘‘(1) AUTHORITY.—The Program may guar-
antee loans provided by private banking and invest-
ment institutions to eligible plan sponsors for pur-
poses of assisting such plan sponsors to meet their 
obligations under section 803. Such loan guarantees 
shall be provided to the extent provided in advance 
in appropriation Acts pursuant to paragraph (4) and 
only in accordance with the procedures, rules, and 
regulations established by the Board. 
‘‘(2) TOTAL
GUARANTEE
LIMIT.—The aggre-
gate amount of loans guaranteed and outstanding at 
any time under this section may not exceed 
$5,000,000,000. 
‘‘(3) INDIVIDUAL GUARANTEE LIMIT.—The ag-
gregate amount of loans guaranteed under this sec-
tion with respect to a single eligible plan sponsor 
may not exceed $5,000,000. 
‘‘(4) ADDITIONAL COSTS.—For the additional 
cost of loans guaranteed under this subsection, in-
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cluding the costs of modifying the loans, as defined 
in section 502 of the Congressional Budget Act of 
1974 (2 U.S.C. 661a), there is authorized to be ap-
propriated $200,000,000, to remain available until 
expended. 
‘‘(e) REQUIREMENTS FOR LOAN GUARANTEES.—A 
loan guarantee may be issued under this section upon ap-
plication to the Board by an eligible plan sponsor pursuant 
to an agreement to provide a loan to that eligible plan 
sponsor by a private bank or investment company, if the 
Board determines that— 
‘‘(1) credit is not otherwise available to that eli-
gible plan sponsor under reasonable terms and con-
ditions sufficient to meet its financing needs with re-
spect to the restoration of retiree health benefits, as 
reflected in the financial and business plans of that 
eligible plan sponsor; 
‘‘(2) the prospective earning power of that eligi-
ble plan sponsor, together with the character and 
value of the security pledged, furnish reasonable as-
surance of repayment of the loan to be guaranteed 
in accordance with its terms; 
‘‘(3) the loan to be guaranteed bears interest at 
a rate determined by the Board to be reasonable, 
taking into account the current average yield on out-
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standing obligations of the United States with re-
maining periods of maturity comparable to the ma-
turity of such loan; 
‘‘(4) the loan to be guaranteed will materially 
assist that eligible plan sponsor to discharge its obli-
gation to comply with the restoration of benefits re-
quirements contained in section 803; and 
‘‘(5) the eligible plan sponsor has agreed to an 
audit by the Government Accountability Office prior 
to the issuance of the loan guarantee and annually 
while any such guaranteed loan is outstanding. 
‘‘(f) TERMS
AND CONDITIONS
OF LOAN GUAR-
ANTEE.— 
‘‘(1) LOAN
DURATION.—All loans guaranteed 
under this section shall be payable in full not later 
than December 31, 2015, and the terms and condi-
tions of each such loan shall provide that the loan 
may not be amended or any provision thereof waived 
without the consent of the Board. 
‘‘(2) LOAN
SECURITY.—Any commitment to 
issue a loan guarantee under this section shall con-
tain such affirmative and negative covenants and 
other protective provisions that the Board deter-
mines are appropriate. 
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‘‘(3) FEES.—An eligible plan sponsor receiving 
a guarantee under this section shall pay a fee in an 
amount equal to 0.5 percent of the outstanding prin-
cipal balance of the guaranteed loan to the Depart-
ment of the Treasury. 
‘‘(g) REPORTS
TO CONGRESS.—The Secretary of 
Labor shall submit annually to each House of the Con-
gress a full report of the activities of the Board under 
this section during 2008 and 2009, and annually there-
after during such period as any loan guaranteed under 
this section is outstanding. Such report shall be submitted 
not later than January 31 of each year (beginning in 
2008). 
‘‘(h) SALARIES AND ADMINISTRATIVE EXPENSES.— 
For necessary expenses to administer the Program, there 
is authorized to be appropriated to the Department of 
Labor (and to be transferred to the Office of the Assistant 
Secretary for Pension and Welfare Benefits Administra-
tion) $10,000,000, to remain available until expended. 
‘‘(i) TERMINATION OF GUARANTEE AUTHORITY.— 
The authority of the Board to make commitments to guar-
antee any loan under this section shall terminate on De-
cember 31, 2013. 
‘‘(j) REGULATORY ACTION.—The Board shall issue 
such final procedures, rules, and regulations as may be 
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necessary to carry out this section not later than 90 days 
after the date of enactment of the Emergency Retiree 
Health Benefits Protection Act of 2007. In no event shall 
the Board issue a procedure, rule, or regulation which au-
thorizes it to approve or deny any application for a loan 
guarantee in more than 270 days after receipt of such ap-
plication. 
‘‘(k) 
EMERGENCY
DESIGNATION.—The 
entire 
amount made available to carry out this section— 
‘‘(1) is designated by Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901(b)(2)(A)); and 
‘‘(2) shall be available only to the extent that 
an official budget request that includes designation 
of the entire amount as an emergency requirement 
(as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985) is transmitted by the 
President to the Congress. 
‘‘SEC. 806. EFFECT ON OTHER CLAIMS. 
‘‘(a) OTHER CLAIMS UNAFFECTED.—Nothing con-
tained in this part shall be construed to alter, impair, or 
eliminate any claim for retiree health benefits based on 
conduct alleged to violate the terms of a group health plan, 
any provision of this Act (other than this part), or both, 
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regardless of whether such conduct occurred prior to, on, 
or after, the effective date of this part. 
‘‘(b) OTHER CAUSES
OF ACTION NOT AUTHOR-
IZED.—Unless the conduct giving rise to a claim for re-
tiree health benefits is alleged to violate the provisions of 
this part, nothing contained in this part shall be construed 
to authorize any other cause of action for the recovery of 
retiree health benefits. 
‘‘SEC. 807. REGULATIONS. 
‘‘The Secretary may promulgate such regulations as 
may be necessary to carry out the provisions of this part. 
The Secretary may promulgate any interim final rules as 
the Secretary deems are appropriate to carry out this part. 
‘‘SEC. 808. ENFORCEMENT. 
‘‘The enforcement provisions of sections 501 and 502 
shall be applicable to this part.’’. 
(2) CIVIL PENALTY SECTION.—Section 502(c) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1132(e)) is amended— 
(A) by redesignating paragraph (9) as 
paragraph (10); and 
(B) by inserting after paragraph (8) the 
following new paragraph: 
‘‘(9) The Secretary may assess a civil penalty of not 
more than $1,000 for each separate violation of section 
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801, 802, or 803 by any person individually with respect 
to each participant or beneficiary aggrieved by such viola-
tion.’’. 
(3) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by in-
serting after the item relating to section 734 the fol-
lowing new items: 
‘‘PART 8—EMERGENCY RETIREE HEALTH BENEFIT PROTECTIONS 
‘‘Sec. 801. Prohibition against post-retirement reductions of retiree health ben-
efits by group health plans. 
‘‘Sec. 802. Adoption by group health plans of provision barring post-retirement 
reductions in retiree health benefits. 
‘‘Sec. 803. Restoration by group health plans of benefits reduced after retire-
ment. 
‘‘Sec. 804. Exemption from restoration of benefits requirements. 
‘‘Sec. 805. Establishment of Emergency Retiree Health Loan Guarantee Pro-
gram. 
‘‘Sec. 806. Effect on other claims. 
‘‘Sec. 807. Regulations. 
‘‘Sec. 808. Enforcement.’’. 
(b) SEPARABILITY OF PROVISIONS.—The provisions 
of section 509 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1139) shall be applicable to 
this section and the amendments made thereby. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
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TITLE II—MULTIEMPLOYER 
MODIFICATIONS 
SEC. 201. CREDITING AND TERMINATION OF SURCHARGES 
IN 
CONNECTION 
WITH 
MULTIEMPLOYER 
PLAN IN CRITICAL STATUS UPON ADOPTION 
OF REHABILITATION PLAN. 
(a) AMENDMENTS TO ERISA.—Section 305(e)(7) of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1085(e)(7)) is amended by adding at the end 
the following new subparagraph: 
‘‘(F) SPECIAL RULE IN THE CASE OF SUF-
FICIENT CONTRIBUTION RATES.—In any case in 
which the plan sponsor of a multiemployer plan 
which is in critical status and with respect to 
which the rehabilitation plan has been adopted 
pursuant to this subsection determines that the 
terms of a collective bargaining agreement (or 
other agreement pursuant to which the em-
ployer contributes) provide for a contribution 
rate increase that became effective during the 
24-month period before the initial critical year 
and determines that such agreement includes 
terms consistent with a schedule presented by 
the plan sponsor under paragraph (1)(B)(i) (as 
modified under paragraph (3)(B))— 
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‘‘(i) surcharges payable by an em-
ployer under this paragraph in connection 
with such critical status shall cease to be 
payable by the employer with respect to 
employees covered by such agreement on 
and after the date of such determination 
by the plan sponsor, and 
‘‘(ii) any such surcharges which have 
been paid by an employer in connection 
with such critical status with respect to 
such employees covered under such agree-
ment shall be credited against contribu-
tions payable by such employer under such 
schedule.’’. 
(b) CONFORMING AMENDMENTS TO THE CODE.— 
Section 432(e)(7) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(F) SPECIAL RULE IN THE CASE OF SUF-
FICIENT CONTRIBUTION RATES.—In any case in 
which the plan sponsor of a multiemployer plan 
which is in critical status and with respect to 
which the rehabilitation plan has been adopted 
pursuant to this subsection determines that the 
terms of a collective bargaining agreement (or 
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other agreement pursuant to which the em-
ployer contributes) provide for a contribution 
rate increase that became effective during the 
24-month period before the initial critical year 
and determines that such agreement includes 
terms consistent with a schedule presented by 
the plan sponsor under paragraph (1)(B)(i) (as 
modified under paragraph (3)(B))— 
‘‘(i) surcharges payable by an em-
ployer under this paragraph in connection 
with such critical status shall cease to be 
payable by the employer with respect to 
employees covered by such agreement on 
and after the date of such determination 
by the plan sponsor, and 
‘‘(ii) any such surcharges which have 
been paid by an employer in connection 
with such critical status with respect to 
such employees covered under such agree-
ment shall be credited against contribu-
tions payable by such employer under such 
schedule.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to determinations 
made on or after the date of the enactment of this Act. 
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