H. R. 7327 
One Hundred Tenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Thursday, 
the third day of January, two thousand and eight 
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 med-
ical 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 re-
tirement 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.
H. R. 7327—2 
Sec. 205. Temporary extension of the funding improvement and rehabilitation peri-
ods for multiemployer pension plans in critical and endangered status 
for 2008 or 2009. 
TITLE I—TECHNICAL CORRECTIONS RE-
LATED 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
H. R. 7327—3 
‘‘(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 serv-
ices 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 contribu-
tions expected to be made during the plan year, plus’’, 
and 
(II) in subparagraph (B), by striking ‘‘the tar-
get normal cost (determined without regard to this 
paragraph) of the plan for the plan year’’ and 
inserting ‘‘the amount determined under sub-
section (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 ‘‘subpara-
graph (A)’’. 
(G) Section 303(j)(3) of ERISA— 
(i) is amended by adding at the end of subpara-
graph (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.’’,
H. R. 7327—4 
(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 regula-
tions 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 serv-
ices 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 ‘‘sub-
section (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),
H. R. 7327—5 
(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 subpara-
graph (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 contribu-
tions expected to be made during the plan year, plus’’, 
and 
(II) in subparagraph (B), by striking ‘‘the tar-
get normal cost (determined without regard to this 
paragraph) of the plan for the plan year’’ and 
inserting ‘‘the amount determined under sub-
section (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 ‘‘subpara-
graph (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 pre-
ceding 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),