109TH CONGRESS 
2D SESSION 
H. R. 4
AN ACT 
To provide economic security for all Americans, 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 of 2006’’.
(b) TABLE OF CONTENTS.—The table of contents for 
this Act (other than so much of title XIV as follows section 
1401) is as follows:
Sec. 1. Short title and table of contents. 
TITLE I—REFORM OF FUNDING RULES FOR SINGLE-EMPLOYER 
DEFINED BENEFIT PENSION PLANS 
Subtitle A—Amendments to Employee Retirement Income Security Act of 
1974
Sec. 101. Minimum funding standards. 
Sec. 102. Funding rules for single-employer defined benefit pension plans. 
Sec. 103. Benefit limitations under single-employer plans. 
Sec. 104. Special rules for multiple employer plans of certain cooperatives. 
Sec. 105. Temporary relief for certain PBGC settlement plans. 
Sec. 106. Special rules for plans of certain government contractors. 
Sec. 107. Technical and conforming amendments. 
Subtitle B—Amendments to Internal Revenue Code of 1986
Sec. 111. Minimum funding standards. 
Sec. 112. Funding rules for single-employer defined benefit pension plans. 
Sec. 113. Benefit limitations under single-employer plans. 
Sec. 114. Technical and conforming amendments. 
Sec. 115. Modification of transition rule to pension funding requirements. 
Sec. 116. Restrictions on funding of nonqualified deferred compensation plans 
by employers maintaining underfunded or terminated single-
employer plans. 
TITLE II—FUNDING RULES FOR MULTIEMPLOYER DEFINED 
BENEFIT PLANS AND RELATED PROVISIONS 
Subtitle A—Amendments to Employee Retirement Income Security Act of 
1974
Sec. 201. Funding rules for multiemployer defined benefit plans. 
Sec. 202. Additional funding rules for multiemployer plans in endangered or 
critical status. 
Sec. 203. Measures to forestall insolvency of multiemployer plans. 
Sec. 204. Withdrawal liability reforms. 
Sec. 205. Prohibition on retaliation against employers exercising their rights to 
petition the Federal government. 
Sec. 206. Special rule for certain benefits funded under an agreement approved 
by the Pension Benefit Guaranty Corporation. 
Subtitle B—Amendments to Internal Revenue Code of 1986
Sec. 211. Funding rules for multiemployer defined benefit plans. 
Sec. 212. Additional funding rules for multiemployer plans in endangered or 
critical status. 
Sec. 213. Measures to forestall insolvency of multiemployer plans. 
Sec. 214. Exemption from excise taxes for certain multiemployer pension plans.
Subtitle C—Sunset of Additional Funding Rules 
Sec. 221. Sunset of additional funding rules. 
TITLE III—INTEREST RATE ASSUMPTIONS 
Sec. 301. Extension of replacement of 30-year Treasury rates. 
Sec. 302. Interest rate assumption for determination of lump sum distributions. 
Sec. 303. Interest rate assumption for applying benefit limitations to lump sum 
distributions. 
TITLE IV—PBGC GUARANTEE AND RELATED PROVISIONS 
Sec. 401. PBGC premiums. 
Sec. 402. Special funding rules for certain plans maintained by commercial air-
lines. 
Sec. 403. Limitation on PBGC guarantee of shutdown and other benefits. 
Sec. 404. Rules relating to bankruptcy of employer. 
Sec. 405. PBGC premiums for small plans. 
Sec. 406. Authorization for PBGC to pay interest on premium overpayment re-
funds. 
Sec. 407. Rules for substantial owner benefits in terminated plans. 
Sec. 408. Acceleration of PBGC computation of benefits attributable to recov-
eries from employers. 
Sec. 409. Treatment of certain plans where cessation or change in membership 
of a controlled group. 
Sec. 410. Missing participants. 
Sec. 411. Director of the Pension Benefit Guaranty Corporation. 
Sec. 412. Inclusion of information in the PBGC annual report. 
TITLE V—DISCLOSURE 
Sec. 501. Defined benefit plan funding notice. 
Sec. 502. Access to multiemployer pension plan information. 
Sec. 503. Additional annual reporting requirements. 
Sec. 504. Electronic display of annual report information. 
Sec. 505. Section 4010 filings with the PBGC. 
Sec. 506. Disclosure of termination information to plan participants. 
Sec. 507. Notice of freedom to divest employer securities. 
Sec. 508. Periodic pension benefit statements. 
Sec. 509. Notice to participants or beneficiaries of blackout periods. 
TITLE VI—INVESTMENT ADVICE, PROHIBITED TRANSACTIONS, 
AND FIDUCIARY RULES 
Subtitle A—Investment Advice 
Sec. 601. Prohibited transaction exemption for provision of investment advice. 
Subtitle B—Prohibited Transactions 
Sec. 611. Prohibited transaction rules relating to financial investments. 
Sec. 612. Correction period for certain transactions involving securities and 
commodities. 
Subtitle C—Fiduciary and Other Rules
Sec. 621. Inapplicability of relief from fiduciary liability during suspension of 
ability of participant or beneficiary to direct investments. 
Sec. 622. Increase in maximum bond amount. 
Sec. 623. Increase in penalties for coercive interference with exercise of ERISA 
rights. 
Sec. 624. Treatment of investment of assets by plan where participant fails to 
exercise investment election. 
Sec. 625. Clarification of fiduciary rules. 
TITLE VII—BENEFIT ACCRUAL STANDARDS 
Sec. 701. Benefit accrual standards. 
Sec. 702. Regulations relating to mergers and acquisitions. 
TITLE VIII—PENSION RELATED REVENUE PROVISIONS 
Subtitle A—Deduction Limitations 
Sec. 801. Increase in deduction limit for single-employer plans. 
Sec. 802. Deduction limits for multiemployer plans. 
Sec. 803. Updating deduction rules for combination of plans. 
Subtitle B—Certain Pension Provisions Made Permanent 
Sec. 811. Pensions and individual retirement arrangement provisions of Eco-
nomic Growth and Tax Relief Reconciliation Act of 2001 made 
permanent. 
Sec. 812. Saver’s credit. 
Subtitle C—Improvements in Portability, Distribution, and Contribution Rules 
Sec. 821. Clarifications regarding purchase of permissive service credit. 
Sec. 822. Allow rollover of after-tax amounts in annuity contracts. 
Sec. 823. Clarification of minimum distribution rules for governmental plans. 
Sec. 824. Allow direct rollovers from retirement plans to Roth IRAs. 
Sec. 825. Eligibility for participation in retirement plans. 
Sec. 826. Modifications of rules governing hardships and unforseen financial 
emergencies. 
Sec. 827. Penalty-free withdrawals from retirement plans for individuals called 
to active duty for at least 179 days. 
Sec. 828. Waiver of 10 percent early withdrawal penalty tax on certain dis-
tributions of pension plans for public safety employees. 
Sec. 829. Allow rollovers by nonspouse beneficiaries of certain retirement plan 
distributions. 
Sec. 830. Direct payment of tax refunds to individual retirement plans. 
Sec. 831. Allowance of additional IRA payments in certain bankruptcy cases. 
Sec. 832. Determination of average compensation for section 415 limits. 
Sec. 833. Inflation indexing of gross income limitations on certain retirement 
savings incentives. 
Subtitle D—Health and Medical Benefits 
Sec. 841. Use of excess pension assets for future retiree health benefits and col-
lectively bargained retiree health benefits. 
Sec. 842. Transfer of excess pension assets to multiemployer health plan. 
Sec. 843. Allowance of reserve for medical benefits of plans sponsored by bona 
fide associations.
Sec. 844. Treatment of annuity and life insurance contracts with a long-term 
care insurance feature. 
Sec. 845. Distributions from governmental retirement plans for health and 
Long-Term care insurance for public safety officers. 
Subtitle E—United States Tax Court Modernization 
Sec. 851. Cost-of-living adjustments for Tax Court judicial survivor annuities. 
Sec. 852. Cost of life insurance coverage for Tax Court judges age 65 or over. 
Sec. 853. Participation of Tax Court judges in the Thrift Savings Plan. 
Sec. 854. Annuities to surviving spouses and dependent children of special trial 
judges of the Tax Court. 
Sec. 855. Jurisdiction of Tax Court over collection due process cases. 
Sec. 856. Provisions for recall. 
Sec. 857. Authority for special trial judges to hear and decide certain employ-
ment status cases. 
Sec. 858. Confirmation of authority of Tax Court to apply doctrine of equitable 
recoupment. 
Sec. 859. Tax Court filing fee in all cases commenced by filing petition. 
Sec. 860. Expanded use of Tax Court practice fee for pro se taxpayers. 
Subtitle F—Other Provisions 
Sec. 861. Extension to all governmental plans of current moratorium on appli-
cation of certain nondiscrimination rules applicable to State 
and local plans. 
Sec. 862. Elimination of aggregate limit for usage of excess funds from black 
lung disability trusts. 
Sec. 863. Treatment of death benefits from corporate-owned life insurance. 
Sec. 864. Treatment of test room supervisors and proctors who assist in the ad-
ministration of college entrance and placement exams. 
Sec. 865. Grandfather rule for church plans which self-annuitize. 
Sec. 866. Exemption for income from leveraged real estate held by church 
plans. 
Sec. 867. Church plan rule. 
Sec. 868. Gratuitous transfer for benefits of employees. 
TITLE IX—INCREASE IN PENSION PLAN DIVERSIFICATION AND 
PARTICIPATION AND OTHER PENSION PROVISIONS 
Sec. 901. Defined contribution plans required to provide employees with free-
dom to invest their plan assets. 
Sec. 902. Increasing participation through automatic contribution arrange-
ments. 
Sec. 903. Treatment of eligible combined defined benefit plans and qualified 
cash or deferred arrangements. 
Sec. 904. Faster vesting of employer nonelective contributions. 
Sec. 905. Distributions during working retirement. 
Sec. 906. Treatment of certain pension plans of Indian tribal governments. 
TITLE X—PROVISIONS RELATING TO SPOUSAL PENSION 
PROTECTION 
Sec. 1001. Regulations on time and order of issuance of domestic relations or-
ders. 
Sec. 1002. Entitlement of divorced spouses to railroad retirement annuities 
independent of actual entitlement of employee.