HR 7327 RDS
(B) by striking paragraph (3) and by re-
designating 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 in-
serting 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 em-
ployee 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, pay-
ments made pursuant to paragraph (2) may not 
begin before the month in which the following three 
conditions are satisfied: 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
‘‘(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 doc-
ument 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 annu-
ity 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Retirement Act (45 U.S.C. 231d) is repealed.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.— 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(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, pay-
ment 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 rein-
stated 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. 
SEC. 111. AMENDMENTS RELATED TO TITLE XI. 
(a) AMENDMENT RELATED TO SECTION 1104.—Sec-
tion 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), 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(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 gov-
ernmental or other pensions, retirement or re-
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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(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 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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
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 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, 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 Employ-
ment Act of 1967 (29 U.S.C. 623(i)(10)(B)(i)(III)) is 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
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. 124. 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: 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
‘‘(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. 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
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 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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
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) 
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 in-
cludes 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. 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(3) REPORTING REQUIREMENTS.—If a commer-
cial 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 
(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. 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 de-
termined under sections 303(g)(3) of such Act 
and 430(g)(3) of such Code.’’. 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after De-
cember 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 RETIRE-
MENT PLANS AND ACCOUNTS. 
(a) IN GENERAL.—Section 401(a)(9) of the Internal 
Revenue Code of 1986 (relating to required distributions) 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
is amended by adding at the end the following new sub-
paragraph: 
‘‘(H) TEMPORARY
WAIVER
OF
MINIMUM 
REQUIRED DISTRIBUTION.— 
‘‘(i) IN GENERAL.—The requirements 
of this paragraph shall not apply for cal-
endar 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 com-
pensation plan described in section 
457(b) but only if such plan is main-
tained 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— 
‘‘(I) the required beginning date 
with respect to any individual shall be 
determined without regard to this 
subparagraph for purposes of applying 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
this paragraph for calendar years 
after 2009, and 
‘‘(II) if clause (ii) of subpara-
graph (B) applies, the 5-year period 
described in such clause shall be de-
termined 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 CON-
TRACT AMENDMENTS.— 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(A) IN GENERAL.—If this paragraph ap-
plies to any pension plan or contract amend-
ment, such pension plan or contract shall not 
fail to be treated as being operated in accord-
ance with the terms of the plan during the pe-
riod described in subparagraph (B)(ii) solely be-
cause 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 pen-
sion 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, sub-
clause (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 effec-
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
tive 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 Se-
curity 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 fol-
lowing: 
‘‘(i) IN
GENERAL.—Except as pro-
vided 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 para-
graph (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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(2) by striking clause (i) and inserting the fol-
lowing: 
‘‘(i) IN
GENERAL.—Except as pro-
vided 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 para-
graph (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 Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Rev-
enue 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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
year but only if the adjusted funding target attainment 
percentage for the preceding plan year is greater. 
SEC. 204. TEMPORARY DELAY OF DESIGNATION OF MULTI-
EMPLOYER PLANS AS IN ENDANGERED OR 
CRITICAL STATUS. 
(a) IN GENERAL.—Notwithstanding the actuarial 
certification under section 305(b)(3) of the Employee Re-
tirement 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 sec-
tions for the plan year preceding such plan year, and 
(2) in the case of a plan which was in endan-
gered or critical status for the preceding plan year 
described in paragraph (1), the plan shall not be re-
quired 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 sec-
tion 432(e)(3)(B) of such Code, whichever is appli-
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
cable, until the plan year following the first plan 
year described in paragraph (1). 
If section 305 of the Employee Retirement Income Secu-
rity 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) 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 elec-
tion, 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 sec-
tion 412(b)(3) of such Code (without regard to the second 
sentence thereof). 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
the plan is certified to be in critical status for 
any plan year but is in endangered status by 
reason of an election made under subsection 
(a), the notice provided under such sections 
shall be the notice which would have been pro-
vided if the plan had been certified to be in en-
dangered status. 
SEC. 205. TEMPORARY EXTENSION OF THE FUNDING IM-
PROVEMENT 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 multiem-
ployer 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 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS
HR 7327 RDS
(2) in the case of a plan in seriously endan-
gered status, the plan’s funding improvement period 
shall be 18 years rather than 15 years. 
(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses 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 Sec-
retary’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. 
Passed the House of Representatives December 10, 
2008. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
VerDate Aug 31 2005 
04:21 Dec 12, 2008
Jkt 079200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H7327.RDS
H7327
rfrederick on PROD1PC67 with BILLS