427
paid directly to an individual retirement plan (as defined 
in section 7701(a)(37) of such Code) of such individual. 
(b) EFFECTIVE DATE.—The form required by sub-
section (a) shall be made available for taxable years begin-
ning after December 31, 2006. 
SEC. 908. IRA ELIGIBILITY FOR THE DISABLED. 
(a) IN GENERAL.—Subsection (f) of section 219 of 
the Internal Revenue Code of 1986 (relating to other defi-
nitions and special rules), as amended by this Act, is fur-
ther amended by redesignating paragraph (8) as para-
graph (9) and by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) SPECIAL
RULE
FOR
CERTAIN
DISABLED 
INDIVIDUALS.—In the case of an individual—
‘‘(A) who is disabled (within the meaning 
of section 72(m)(7)), and 
‘‘(B) who has not attained the applicable 
age (as defined in section 401(a)(9)(H)) before 
the close of the taxable year, 
subparagraph (B) of subsection (b)(1) shall not 
apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2005.
428
SEC. 909. ALLOW ROLLOVERS BY NONSPOUSE BENE-
FICIARIES OF CERTAIN RETIREMENT PLAN 
DISTRIBUTIONS. 
(a) IN GENERAL.—
(1) QUALIFIED PLANS.—Section 402(c) of the 
Internal Revenue Code of 1986 (relating to rollovers 
from exempt trusts) is amended by adding at the 
end the following new paragraph: 
‘‘(11) DISTRIBUTIONS
TO
INHERITED
INDI-
VIDUAL RETIREMENT PLAN OF NONSPOUSE BENE-
FICIARY.—
‘‘(A) IN GENERAL.—If, with respect to any 
portion of a distribution from an eligible retire-
ment plan of a deceased employee, a direct 
trustee-to-trustee transfer is made to an indi-
vidual retirement plan described in clause (i) or 
(ii) of paragraph (8)(B) established for the pur-
poses of receiving the distribution on behalf of 
an individual who is a designated beneficiary 
(as defined by section 401(a)(9)(E)) of the em-
ployee and who is not the surviving spouse of 
the employee—
‘‘(i) the transfer shall be treated as an 
eligible rollover distribution for purposes of 
this subsection,
429
‘‘(ii) the individual retirement plan 
shall be treated as an inherited individual 
retirement account or individual retirement 
annuity (within the meaning of section 
408(d)(3)(C)) for purposes of this title, 
and 
‘‘(iii) section 401(a)(9)(B) (other than 
clause (iv) thereof) shall apply to such 
plan. 
‘‘(B) CERTAIN TRUSTS TREATED AS BENE-
FICIARIES.—For purposes of this paragraph, to 
the extent provided in rules prescribed by the 
Secretary, a trust maintained for the benefit of 
one or more designated beneficiaries shall be 
treated in the same manner as a trust des-
ignated beneficiary.’’. 
(2) SECTION
403(a) 
PLANS.—Subparagraph 
(B) of section 403(a)(4) of such Code (relating to 
rollover amounts) is amended by inserting ‘‘and 
(11)’’ after ‘‘(7)’’. 
(3) SECTION
403(b) PLANS.—Subparagraph 
(B) of section 403(b)(8) of such Code (relating to 
rollover amounts) is amended by striking ‘‘and (9)’’ 
and inserting ‘‘, (9), and (11)’’.
430
(4) SECTION 457 PLANS.—Subparagraph (B) of 
section 457(e)(16) of such Code (relating to rollover 
amounts) is amended by striking ‘‘and (9)’’ and in-
serting ‘‘, (9), and (11)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions after December 31, 
2005. 
TITLE X—PROVISIONS TO EN-
HANCE 
HEALTH 
CARE 
AF-
FORDABILITY 
SEC. 1001. TREATMENT OF ANNUITY AND LIFE INSURANCE 
CONTRACTS WITH A LONG-TERM CARE IN-
SURANCE FEATURE. 
(a) EXCLUSION FROM GROSS INCOME.—Subsection 
(e) of section 72 of the Internal Revenue Code of 1986 
(relating to amounts not received as annuities) is amended 
by redesignating paragraph (11) as paragraph (12) and 
by inserting after paragraph (10) the following new para-
graph: 
‘‘(11) SPECIAL RULES FOR CERTAIN COMBINA-
TION CONTRACTS PROVIDING LONG-TERM CARE IN-
SURANCE.—Notwithstanding paragraphs (2), (5)(C), 
and (10), in the case of any charge against the cash 
value of an annuity contract or the cash surrender 
value of a life insurance contract made as payment
431
for coverage under a qualified long-term care insur-
ance contract which is part of or a rider on such an-
nuity or life insurance contract—
‘‘(A) the investment in the contract shall 
be reduced (but not below zero) by such charge, 
and 
‘‘(B) such charge shall not be includible in 
gross income.’’. 
(b) TAX-FREE EXCHANGES AMONG CERTAIN INSUR-
ANCE POLICIES.—
(1) ANNUITY CONTRACTS CAN INCLUDE QUALI-
FIED LONG-TERM CARE INSURANCE RIDERS.—Para-
graph (2) of section 1035(b) of such Code is amend-
ed by adding at the end the following new sentence: 
‘‘For purposes of the preceding sentence, a contract 
shall not fail to be treated as an annuity contract 
solely because a qualified long-term care insurance 
contract is a part of or a rider on such contract.’’. 
(2) LIFE INSURANCE CONTRACTS CAN INCLUDE 
QUALIFIED LONG-TERM CARE INSURANCE RIDERS.—
Paragraph (3) of section 1035(b) of such Code is 
amended by adding at the end the following new 
sentence: ‘‘For purposes of the preceding sentence, 
a contract shall not fail to be treated as a life insur-
ance contract solely because a qualified long-term
432
care insurance contract is a part of or a rider on 
such contract.’’. 
(3) EXPANSION OF TAX-FREE EXCHANGES OF 
LIFE INSURANCE, ENDOWMENT, AND ANNUITY CON-
TRACTS FOR LONG-TERM CARE CONTRACTS.—Sub-
section (a) of section 1035 of such Code (relating to 
certain exchanges of insurance policies) is amend-
ed—
(A) in paragraph (1) by striking ‘‘con-
tract;’’ and inserting ‘‘contract or for a quali-
fied long-term care insurance contract;’’, 
(B) in paragraph (2) by striking ‘‘con-
tract;’’ and inserting ‘‘contract, or (C) for a 
qualified long-term care insurance contract;’’, 
and 
(C) in paragraph (3) by striking ‘‘con-
tract.’’ and inserting ‘‘contract or for a quali-
fied long-term care insurance contract.’’. 
(4) TAX-FREE
EXCHANGES
OF
QUALIFIED 
LONG-TERM
CARE
INSURANCE
CONTRACT.—Sub-
section (a) of section 1035 of such Code (relating to 
certain exchanges of insurance policies) is amended 
by striking ‘‘or’’ at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and
433
inserting ‘‘; or’’, and by inserting after paragraph 
(3) the following new paragraph: 
‘‘(4) a qualified long-term care insurance con-
tract for a qualified long-term care insurance con-
tract.’’. 
(c) TREATMENT OF COVERAGE PROVIDED AS PART 
OF A LIFE INSURANCE OR ANNUITY CONTRACT.—Sub-
section (e) of section 7702B of such Code (relating to 
treatment of qualified long-term care insurance) is amend-
ed to read as follows: 
‘‘(e) TREATMENT OF COVERAGE PROVIDED AS PART 
OF A LIFE INSURANCE OR ANNUITY CONTRACT.—
‘‘(1) COVERAGE TREATED AS CONTRACT.—Ex-
cept as otherwise provided in regulations prescribed 
by the Secretary, in the case of any long-term care 
insurance coverage (whether or not qualified) pro-
vided by a rider on or as part of a life insurance 
contract or an annuity contract, this title shall apply 
as if the portion of the contract providing such cov-
erage is a separate contract. 
‘‘(2) DENIAL OF DEDUCTION UNDER SECTION 
213.—No deduction shall be allowed under section 
213(a) for any payment made for coverage under a 
qualified long-term care insurance contract if such 
payment is made as a charge against the cash value
434
of an annuity contract or the cash surrender value 
of a life insurance contract. 
‘‘(3) APPLICATION OF SECTION 7702.—Section 
7702(c)(2) (relating to the guideline premium limi-
tation) shall be applied by increasing the guideline 
premium limitation with respect to the life insurance 
contract, as of any date—
‘‘(A) by the sum of any charges (but not 
premium payments) against the life insurance 
contract’s cash surrender value (within the 
meaning of section 7702(f)(2)(A)) for coverage 
under the qualified long-term care insurance 
contract made to that date under the life insur-
ance contract, less 
‘‘(B) any such charges the imposition of 
which reduces the premiums paid for the life in-
surance contract (within the meaning of section 
7702(f)(1)). 
‘‘(4) PORTION DEFINED.—For purposes of this 
subsection, the term ‘portion’ means only the terms 
and benefits under a life insurance contract or annu-
ity contract that are in addition to the terms and 
benefits under the contract without regard to long-
term care insurance coverage.
435
‘‘(5) ANNUITY
CONTRACTS
TO
WHICH
PARA-
GRAPH (1) DOES NOT APPLY.—For purposes of this 
subsection, none of the following shall be treated as 
an annuity contract: 
‘‘(A) A trust described in section 401(a) 
which is exempt from tax under section 501(a). 
‘‘(B) A contract—
‘‘(i) purchased by a trust described in 
subparagraph (A), 
‘‘(ii) purchased as part of a plan de-
scribed in section 403(a), 
‘‘(iii) described in section 403(b), 
‘‘(iv) provided for employees of a life 
insurance company under a plan described 
in section 818(a)(3), or 
‘‘(v) from an individual retirement ac-
count or an individual retirement annuity. 
‘‘(C) A contract purchased by an employer 
for the benefit of the employee (or the employ-
ee’s spouse). 
Any dividend described in section 404(k) which is 
received by a participant or beneficiary shall, for 
purposes of this paragraph, be treated as paid under 
a separate contract to which subparagraph (B)(i) 
applies.’’.
436
(d) INFORMATION REPORTING.—
(1) Subpart B of part III of subchapter A of 
chapter 61 of such Code (relating to information 
concerning transactions with other persons) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 6050U. CHARGES OR PAYMENTS FOR QUALIFIED 
LONG-TERM CARE INSURANCE CONTRACTS 
UNDER COMBINED ARRANGEMENTS. 
‘‘(a) REQUIREMENT
OF REPORTING.—Any person 
who makes a charge against the cash value of an annuity 
contract, or the cash surrender value of a life insurance 
contract, which is excludible from gross income under sec-
tion 72(e)(11) shall make a return, according to the forms 
or regulations prescribed by the Secretary, setting forth—
‘‘(1) the amount of the aggregate of such 
charges against each such contract for the calendar 
year, 
‘‘(2) the amount of the reduction in the invest-
ment in each such contract by reason of such 
charges, and 
‘‘(3) the name, address, and TIN of the indi-
vidual who is the holder of each such contract. 
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS 
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—
437
Every person required to make a return under subsection 
(a) shall furnish to each individual whose name is required 
to be set forth in such return a written statement show-
ing—
‘‘(1) the name, address, and phone number of 
the information contact of the person making the 
payments, and 
‘‘(2) the information required to be shown on 
the return with respect to such individual. 
The written statement required under the preceding sen-
tence shall be furnished to the individual on or before Jan-
uary 31 of the year following the calendar year for which 
the return under subsection (a) was required to be made.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
such chapter 61 of such Code is amended by adding 
at the end the following new item:
‘‘Sec. 6050U. Charges or payments for qualified long-term care insurance con-
tracts under combined arrangements.’’.
(e) TREATMENT
OF
POLICY
ACQUISITION
EX-
PENSES.—Subsection (e) of section 848 of such Code (re-
lating to classification of contracts) is amended by adding 
at the end the following new paragraph: 
‘‘(6) TREATMENT
OF
CERTAIN
QUALIFIED 
LONG-TERM CARE INSURANCE CONTRACT ARRANGE-
MENTS.—An annuity or life insurance contract
438
which includes a qualified long-term care insurance 
contract as a part of or a rider on such annuity or 
life insurance contract shall be treated as a specified 
insurance contract not described in subparagraph 
(A) or (B) of subsection (c)(1).’’. 
(f) TREATMENT AS QUALIFIED ADDITIONAL BEN-
EFIT.—Subparagraph (A) of section 7702(f)(5) of such 
Code (relating to qualified additional benefits) is amended 
by striking ‘‘or’’ at the end of clause (iv), by redesignating 
clause (v) as clause (vi), and by inserting after clause (iv) 
the following new clause: 
‘‘(v) qualified long-term care insur-
ance contract which is a part of or a rider 
on the contract, or’’. 
(g) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section 
shall apply to contracts issued before, on, or after 
December 31, 2006, but only with respect to periods 
beginning after such date. 
(2) SUBSECTION (b).—The amendments made 
by subsection (b) shall apply with respect to ex-
changes occurring after December 31, 2006.
439
SEC. 1002. DISPOSITION OF UNUSED HEALTH AND DEPEND-
ENT CARE BENEFITS IN CAFETERIA PLANS 
AND FLEXIBLE SPENDING ARRANGEMENTS. 
(a) IN GENERAL.—Section 125 of the Internal Rev-
enue Code of 1986 (relating to cafeteria plans) is amended 
by redesignating subsections (h) and (i) as subsections (i) 
and (j), respectively, and by inserting after subsection (g) 
the following: 
‘‘(h) CONTRIBUTIONS OF CERTAIN UNUSED HEALTH 
AND DEPENDENT CARE BENEFITS.—
‘‘(1) IN GENERAL.—For purposes of this title, 
a plan or other arrangement shall not fail to be 
treated as a cafeteria plan solely because under such 
plan qualified benefits include—
‘‘(A) a health flexible spending arrange-
ment under which not more than $500 of un-
used benefits under such arrangement may 
be—
‘‘(i) carried forward to the succeeding 
plan year of such health flexible spending 
arrangement, or 
‘‘(ii) to the extent permitted by sec-
tion 106(d), contributed by the employer to 
a health savings account (as defined in sec-
tion 223(d)) maintained for the benefit of 
the employee, and
440
‘‘(B) a dependent care flexible spending ar-
rangement under which not more than $500 of 
unused benefits under such arrangement may 
be carried forward to the succeeding plan year 
of such dependent care flexible spending ar-
rangement. 
‘‘(2) HEALTH FLEXIBLE SPENDING ARRANGE-
MENT.—For purposes of this subsection, the term 
‘health flexible spending arrangement’ means a flexi-
ble spending arrangement (as defined in section 
106(c)) that is a qualified benefit and only permits 
reimbursement for expenses for medical care (as de-
fined in section 213(d)(1), without regard to sub-
paragraphs (C) and (D) thereof). 
‘‘(3) DEPENDENT
CARE
FLEXIBLE
SPENDING 
ARRANGEMENT.—For purposes of this subsection, 
the term ‘dependent care flexible spending arrange-
ment’ means a flexible spending arrangement (as de-
fined in section 106(c)) that is a qualified benefit 
and only permits reimbursement for expenses for de-
pendent care assistance which meets the require-
ments of section 129(d). 
‘‘(4) UNUSED BENEFITS.—For purposes of this 
subsection, with respect to an employee, the term 
‘unused benefits’ means the excess of—
441
‘‘(A) the maximum amount of reimburse-
ment allowable to the employee for a plan year 
under a health flexible spending arrangement or 
the dependent care flexible spending arrange-
ment, as the case may be, over 
‘‘(B) the actual amount of reimbursement 
for such year under such arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 1003. DISTRIBUTIONS FROM GOVERNMENTAL RETIRE-
MENT PLANS FOR HEALTH AND LONG-TERM 
CARE INSURANCE FOR PUBLIC SAFETY OFFI-
CERS. 
(a) IN GENERAL.—Section 402 of the Internal Rev-
enue Code of 1986 (relating to taxability of beneficiary 
of employees’ trust) is amended by adding at the end the 
following new subsection: 
‘‘(l) DISTRIBUTIONS FROM GOVERNMENTAL PLANS 
FOR HEALTH AND LONG-TERM CARE INSURANCE.—
‘‘(1) IN GENERAL.—In the case of an employee 
who is an eligible retired public safety officer who 
makes the election described in paragraph (6) with 
respect to any taxable year of such employee, gross 
income of such employee for such taxable year does
442
not include any distribution from an eligible retire-
ment plan to the extent that the aggregate amount 
of such distributions does not exceed the amount 
paid by such employee for qualified health insurance 
premiums of the employee, his spouse, or dependents 
(as defined in section 152) for such taxable year. 
‘‘(2) LIMITATION.—The amount which may be 
excluded from gross income for the taxable year by 
reason of paragraph (1) shall not exceed $5,000. 
‘‘(3) DISTRIBUTIONS MUST OTHERWISE BE IN-
CLUDIBLE.—
‘‘(A) IN GENERAL.—An amount shall be 
treated as a distribution for purposes of para-
graph (1) only to the extent that such amount 
would be includible in gross income without re-
gard to paragraph (1). 
‘‘(B) APPLICATION OF SECTION 72.—Not-
withstanding section 72, in determining the ex-
tent to which an amount is treated as a dis-
tribution for purposes of subparagraph (A), the 
aggregate amounts distributed from an eligible 
retirement plan in a taxable year (up to the 
amount excluded under paragraph (1)) shall be 
treated as includible in gross income (without 
regard to subparagraph (A)) to the extent that
443
such amount does not exceed the aggregate 
amount which would have been so includible if 
all amounts distributed from all eligible retire-
ment plans were treated as 1 contract for pur-
poses of determining the inclusion of such dis-
tribution under section 72. Proper adjustments 
shall be made in applying section 72 to other 
distributions in such taxable year and subse-
quent taxable years. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) ELIGIBLE RETIREMENT PLAN.—For 
purposes of paragraph (1), the term ‘eligible re-
tirement plan’ means a governmental plan 
(within the meaning of section 414(d)) which is 
described in clause (iii), (iv), (v), or (vi) of sub-
section (c)(8)(B). 
‘‘(B) ELIGIBLE RETIRED PUBLIC SAFETY 
OFFICER.—The term ‘eligible retired public 
safety officer’ means an individual who, by rea-
son of disability or attainment of normal retire-
ment age, is separated from service as a public 
safety officer with the employer who maintains 
the eligible retirement plan from which distribu-
tions subject to paragraph (1) are made.
444
‘‘(C) PUBLIC SAFETY OFFICER.—The term 
‘public safety officer’ shall have the same mean-
ing given such term by section 1204(8)(A) of 
the Omnibus Crime Control and Safe Streets 
Act of 1968 (42 U.S.C. 3796b(8)(A)). 
‘‘(D) 
QUALIFIED
HEALTH
INSURANCE 
PREMIUMS.—The term ‘qualified health insur-
ance premiums’ means premiums for coverage 
for the eligible retired public safety officer, his 
spouse, and dependents, by an accident or 
health insurance plan or qualified long-term 
care insurance contract (as defined in section 
7702B(b)). 
‘‘(5) SPECIAL
RULES.—For purposes of this 
subsection—
‘‘(A) DIRECT PAYMENT TO INSURER RE-
QUIRED.—Paragraph (1) shall only apply to a 
distribution if payment of the premiums is 
made directly to the provider of the accident or 
health insurance plan or qualified long-term 
care insurance contract by deduction from a 
distribution from the eligible retirement plan. 
‘‘(B) RELATED PLANS TREATED AS 1.—All 
eligible retirement plans of an employer shall be 
treated as a single plan.
445
‘‘(6) ELECTION DESCRIBED.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), an election is described in this para-
graph if the election is made by an employee 
after separation from service with respect to 
amounts not distributed from an eligible retire-
ment plan to have amounts from such plan dis-
tributed in order to pay for qualified health in-
surance premiums. 
‘‘(B) SPECIAL RULE.—A plan shall not be 
treated as violating the requirements of section 
401, or as engaging in a prohibited transaction 
for purposes of section 503(b), merely because 
it provides for an election with respect to 
amounts that are otherwise distributable under 
the plan or merely because of a distribution 
made pursuant to an election described in sub-
paragraph (A). 
‘‘(7) COORDINATION WITH MEDICAL EXPENSE 
DEDUCTION.—The amounts excluded from gross in-
come under paragraph (1) shall not be taken into 
account under section 213. 
‘‘(8) COORDINATION
WITH
DEDUCTION
FOR 
HEALTH INSURANCE COSTS OF SELF-EMPLOYED IN-
DIVIDUALS.—The amounts excluded from gross in-
446
come under paragraph (1) shall not be taken into 
account under section 162(l).’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 403(a) of such Code (relating to 
taxability of beneficiary under a qualified annuity 
plan) is amended by inserting after paragraph (1) 
the following new paragraph: 
‘‘(2) SPECIAL RULE FOR HEALTH AND LONG-
TERM CARE INSURANCE.—To the extent provided in 
section 402(l), paragraph (1) shall not apply to the 
amount distributed under the contract which is oth-
erwise includible in gross income under this sub-
section.’’. 
(2) Section 403(b) of such Code (relating to 
taxability of beneficiary under annuity purchased by 
section 501(c)(3) organization or public school) is 
amended by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) SPECIAL RULE FOR HEALTH AND LONG-
TERM CARE INSURANCE.—To the extent provided in 
section 402(l), paragraph (1) shall not apply to the 
amount distributed under the contract which is oth-
erwise includible in gross income under this sub-
section.’’.
447
(3) Section 457(a) of such Code (relating to 
year of inclusion in gross income) is amended by 
adding at the end the following new paragraph: 
‘‘(3) SPECIAL RULE FOR HEALTH AND LONG-
TERM CARE INSURANCE.—In the case of a plan of 
an 
eligible 
employer 
described 
in 
subsection 
(e)(1)(A), to the extent provided in section 402(l), 
paragraph (1) shall not apply to amounts otherwise 
includible in gross income under this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions in taxable years 
beginning after December 31, 2005. 
TITLE XI—GENERAL 
PROVISIONS 
SEC. 1101. PROVISIONS RELATING TO PLAN AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any pen-
sion plan or contract amendment—
(1) such pension plan or contract shall be treat-
ed as being operated in accordance with the terms 
of the plan during the period described in subsection 
(b)(2)(A), and 
(2) except as provided by the Secretary of the 
Treasury, such pension plan shall not fail to meet 
the requirements of section 411(d)(6) of the Internal 
Revenue Code of 1986 and section 204(g) of the
448
Employee Retirement Income Security Act of 1974 
by reason of such amendment. 
(b) AMENDMENTS TO WHICH SECTION APPLIES.—
(1) IN GENERAL.—This section shall apply to 
any amendment to any pension plan or annuity con-
tract which is made—
(A) pursuant to any amendment made by 
this Act or pursuant to any regulation issued by 
the Secretary of the Treasury or the Secretary 
of Labor under this Act, and 
(B) on or before the last day of the first 
plan year beginning on or after January 1, 
2008. 
In the case of a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986), this paragraph shall be applied by sub-
stituting ‘‘2010’’ for ‘‘2008’’. 
(2) CONDITIONS.—This section shall not apply 
to any amendment unless—
(A) during the period—
(i) beginning on the date the legisla-
tive or regulatory amendment described in 
paragraph (1)(A) takes effect (or in the 
case of a plan or contract amendment not 
required by such legislative or regulatory
449
amendment, the effective date specified by 
the plan), and 
(ii) ending on the date described in 
paragraph (1)(B) (or, if earlier, the date 
the plan or contract amendment is adopt-
ed), 
the plan or contract is operated as if such plan 
or contract amendment were in effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period.
Passed the House of Representatives December 15, 
2005. 
Attest:
Clerk.