HR 3868 IHCommentsClose CommentsPermalink

To provide an orderly transition to new requirements, and for other purposes.CommentsClose CommentsPermalink

October 17, 2007

Mr. POMEROY (for himself and Mr. CANTOR) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To provide an orderly transition to new requirements, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. DELAY OF EFFECTIVE DATES FOR SINGLE-EMPLOYER PLAN FUNDING RULES.

(a) In General-CommentsClose CommentsPermalink





(1) DELAYED EFFECTIVE DATES- The sections of the Pension Protection Act of 2006, the Internal Revenue Code of 1986, and the Employee Retirement Income Security Act of 1974 specified in paragraph (3) are amended--CommentsClose CommentsPermalink





(A) by striking `2007' and inserting, `the applicable funding pre-effective date year (as defined in section 1305 of the Pension Protection Act of 2006)',CommentsClose CommentsPermalink





(B) by striking `2008' and inserting `the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)',CommentsClose CommentsPermalink





(C) by striking `2009' and inserting `the calendar year after the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)',CommentsClose CommentsPermalink





(D) by striking `2010' and inserting `the calendar year that is two years after the applicable effective date year (as defined in section 1305 of the Pension Protection Act of 2006)',CommentsClose CommentsPermalink





(E) by striking `2011' and inserting `the calendar year that is three years after the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)', andCommentsClose CommentsPermalink





(F) by striking `2012' and inserting `the calendar year that is four years after the applicable funding effective year (as defined in section 1305 of the Pension Protection Act of 2006)'.CommentsClose CommentsPermalink





(2) APPLICABLE FUNDING EFFECTIVE DATE YEARS- Title XIII of the Pension Protection Act of 2006 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 1305. APPLICABLE FUNDING EFFECTIVE DATES.

`(a) In General-CommentsClose CommentsPermalink





`(1) For purposes of this Act, except as otherwise provided in this section, the term `applicable funding pre-effective date year' means 2008.CommentsClose CommentsPermalink





`(2) For purposes of this Act, the term `applicable funding effective date year' means the calendar year immediately following the applicable funding pre-effective date year.CommentsClose CommentsPermalink





`(b) Exception- Subsection (a)(1) shall apply only if final regulations are issued by June 30, 2008, with respect to sections 206(g), 303(f), 303(g)(3), 303(h)(2), 303(h)(3), 303(i)(4)(A)(ii), and 303(j)(3)(A) of the Employee Retirement Income Security Act of 1974 and sections 430(f), 430(g)(3), 430(h)(2), 430(h)(3), 430(i)(4)(A)(ii), 430(j)(3)(A), and 436 of the Internal Revenue Code of 1986. If final regulations under all such sections are not issued by June 30, 2008, for purposes of this Act, the term `applicable funding pre-effective date year' shall mean the first calendar year with respect to which all such final regulations are issued by June 30 of such year.CommentsClose CommentsPermalink





`(c) Effective Date- This section shall take effect on the date of the enactment of this Act.'.CommentsClose CommentsPermalink





(3) APPLICABLE SECTIONS-CommentsClose CommentsPermalink





(A) PENSION PROTECTION ACT OF 2006- The amendments made in paragraph (1) shall apply to the following sections of the Pension Protection Act of 2006: 101(d), 102(c), 103(c), 104(b), 105(b), 106(b), 107(e), 111(b), 112(b), 113(b), 115(a), 115(b)(3), 115(e)(2), 302(c), 401(a)(2), 402(b)(1), 505(c), and 802(b).CommentsClose CommentsPermalink





(B) INTERNAL REVENUE CODE OF 1986- The amendments made in paragraph (1) shall apply to the following sections of the Internal Revenue Code of 1986: 417(e)(3), 430(c)(5), 430(f)(1)(B)(ii)(I),430(f)(3)(C), 430(f)(6)(C)(i), 430(f)(7)(C)(i), 430(h)(2)(G), 430(i)(4)(B), 430(i)(5)(C), 436(j), and 436(k).CommentsClose CommentsPermalink





(C) EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974- The amendments made in paragraph (1) shall apply to the following sections of the Employee Retirement Income Security Act of 1974: 205(g)(3), 206(g)(9), 206(g)(10), 303(c)(5), 303(f)(1)(B)(ii)(I), 303(f)(3)(C), 303(f)(6)(C)(i), 303(f)(7)(C)(i), 303(h)(2)(G), 303(i)(4)(B), 303(i)(5)(C), and 4041(b)(5)(C)(i).CommentsClose CommentsPermalink





(b) Extension of Replacement of 30-Year Treasury Rates-CommentsClose CommentsPermalink





(1) AMENDMENTS OF ERISA-CommentsClose CommentsPermalink





(A) DETERMINATION OF RANGE- Subclause (II) of section 302(b)(5)(B)(ii) of the Employee Retirement Income Security Act of 1974 is amended--CommentsClose CommentsPermalink





(i) by striking `January 1, 2008' and inserting `January 1 of the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)', andCommentsClose CommentsPermalink





(ii) in the heading, by striking `FOR YEARS 2004, 2005, 2006, AND 2007'.CommentsClose CommentsPermalink





(B) DETERMINATION OF CURRENT LIABILITY- Subclause (IV) of section 302(d)(7)(C)(i) of such Act is amended--CommentsClose CommentsPermalink





(i) by striking `in 2004, 2005, 2006, or 2007' and inserting `after 2003 and before the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)', andCommentsClose CommentsPermalink





(ii) in the heading, by striking `FOR YEARS 2004, 2005, 2006, AND 2007'.CommentsClose CommentsPermalink





(C) PBGC PREMIUM RATE- Subclause (V) of section 4006(a)(3)(E)(iii) of such Act is amended by striking `January 1, 2008' and inserting `January 1 of the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)'.CommentsClose CommentsPermalink





(2) AMENDMENTS OF INTERNAL REVENUE CODE-CommentsClose CommentsPermalink





(A) DETERMINATION OF RANGE- Subclause (II) of section 412(b)(5)(B)(ii) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(i) by striking `January 1, 2008' and inserting `January 1 of the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)', andCommentsClose CommentsPermalink





(ii) in the heading, by striking `FOR YEARS 2004, 2005, 2006, AND 2007'.CommentsClose CommentsPermalink





(B) DETERMINATION OF CURRENT LIABILITY- Subclause (IV) of section 412(1)(7)(C)(i) of such Code is amended--CommentsClose CommentsPermalink





(i) by striking `in 2004, 2005, 2006, and 2007' and inserting `after 2003 and before the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)', andCommentsClose CommentsPermalink





(ii) in the heading, by striking `FOR YEARS 2004, 2005, 2006, AND 2007'.CommentsClose CommentsPermalink





(3) PLAN AMENDMENTS- Clause (ii) of section 101(c)(2)(A) of the Pension Funding Equity Act of 2004 is amended by striking `January 1, 2008' and inserting `January 1 of the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)'.CommentsClose CommentsPermalink





(c) Conforming Amendments Regarding Transition Rule-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 115(d) of the Pension Protection Act of 2006 is amended to read as follows:CommentsClose CommentsPermalink





`(1) IN GENERAL- Section 769(c)(3) of the Retirement Protection Act of 1994, as added by section 201 of the Pension Funding Equity Act of 2004, is amended by striking `in 2004 and 2005' and inserting `after 2003 and before the applicable funding effective date year (as defined in section 1305 of the Pension Protection Act of 2006)'.'.CommentsClose CommentsPermalink





(2) HEADING- The heading of subsection (d) of section 115 of such Act is amended by striking `for 2006 and 2007'.CommentsClose CommentsPermalink





(d) Conforming Amendments Regarding Funding Notice-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 501(d) of the Pension Protection Act of 2006 is amended to read as follows:CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after December 31 of the applicable funding pre-effective date year (as defined in section 1305 of this Act), or, in the case of a multiemployer plan, plan years beginning after December 31, 2007.'.CommentsClose CommentsPermalink





(2) REPEAL OF NOTICE- Subsection (d) of section 501 of such Act is amended by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph:CommentsClose CommentsPermalink





`(2) REPEAL OF NOTICE- The amendment made by subsection (b) shall apply to plan years beginning after December 31, 2006.'.CommentsClose CommentsPermalink





(3) TRANSITION RULE- Paragraph (3) of section 501(d) of such Act, as redesignated, is amended--CommentsClose CommentsPermalink





(A) by adding `or, in the case of a single-employer plan, before January 1 of the applicable funding effective date year (as defined in section 1305 of this Act)' after `2008,',CommentsClose CommentsPermalink





(B) by striking `2006' and inserting `2006 or, in the case of a single-employer plan, before the applicable funding pre-effective date year (as defined in section 1305 of this Act)',CommentsClose CommentsPermalink





(C) by striking `2007' and inserting `the applicable funding pre-effective date year (as defined in section 1305 of this Act)',CommentsClose CommentsPermalink





(D) by striking `or funded percentage' the second place it appears,CommentsClose CommentsPermalink





(E) by striking `may provide.' and inserting `may provide, and',CommentsClose CommentsPermalink





(F) by adding at the end the following:CommentsClose CommentsPermalink





`(C) in the case of a plan year beginning in 2007, the funded percentage as determined using such methods of estimation as the Secretary of the Treasury may provide.'.CommentsClose CommentsPermalink





(e) Conforming Amendments Regarding Additional Annual Reporting Requirements- Subsection (f) of section 503 of the Pension Protection Act of 2006 is amended to read as follows:CommentsClose CommentsPermalink





`(f) Effective Date-CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as otherwise provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after the applicable funding pre-effective date year (as defined in section 1305 of this Act).CommentsClose CommentsPermalink





`(2) MULTIEMPLOYER PLANS- With respect to multiemployer plans, the amendments made by this section shall apply to plan years beginning after December 31, 2007.'.CommentsClose CommentsPermalink





(f) Conforming Amendments Regarding Plan Amendments-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 1107(b)(1) of the Pension Protection Act of 2006 is amended by striking `January 1, 2009' and inserting `January 1 of the calendar year after the applicable funding effective date year (as defined in section 1305 of this Act)'.CommentsClose CommentsPermalink





(2) GOVERNMENTAL PLANS- Paragraph (1) of section 1107(b) of such Act is amended to read as follows:CommentsClose CommentsPermalink





`(1) In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), subparagraph (B) shall be applied as if it read: `on or before the last day of the first plan year beginning on or after January 1 of the calendar year that is three years after the applicable funding effective date year (as defined in section 1305 of this Act)'.'.CommentsClose CommentsPermalink





(g) Conforming Amendments Regarding Deduction Limits-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 801(f) of the Pension Protection Act of 2006, as redesignated by paragraph (4), is amended--CommentsClose CommentsPermalink





(A) by striking `paragraph (2)' and inserting `paragraphs (2) and (3)', andCommentsClose CommentsPermalink





(B) by striking `December 31, 2007' and inserting `December 31 of the applicable funding pre-effective date year (as defined in section 1305 of this Act)'.CommentsClose CommentsPermalink





(2) MULTIEMPLOYER PLANS- Subsection (f) of section 801 of such Act, as redesignated by paragraph (4), is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:CommentsClose CommentsPermalink





`(2) MULTIEMPLOYER PLANS- Except as provided in paragraph (3), with respect to multiemployer plans, the amendments made by this section shall apply to years beginning after December 31, 2007.'.CommentsClose CommentsPermalink





(3) SPECIAL RULE- Paragraph (3) of section 801(d) of such Act, as redesignated, is amended by adding at the end the following: `The amendments made by subsection (e) shall apply to years beginning after December 31, 2007, and before January 1 of the applicable funding effective date year (as defined in section 1305 of this Act).'.CommentsClose CommentsPermalink





(4) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Subparagraph (D) of section 404(a)(1) of the Internal Revenue Code of 1986 (as amended by the Pension Protection Act of 2006 other than section 802 of such Act) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(v) MULTIEMPLOYER PLANS- In the case of a defined benefit plan which is a multiemployer plan, except as provided in regulations, the maximum amount deductible under the limitations of this paragraph shall not be less than the excess (if any) of--CommentsClose CommentsPermalink





`(I) 140 percent of the current liability of the plan determined under section 431(c)(6)(C), overCommentsClose CommentsPermalink





`(II) the value of the plan's assets determined under section 431(c)(2).'.CommentsClose CommentsPermalink





(B) SINGLE-EMPLOYER PLANS- Subparagraph (D) of section 404(a)(1) of such Code is amended--CommentsClose CommentsPermalink





(i) by inserting after `defined benefit plan' in clause (i) the following `(other than a multiemployer plan)',CommentsClose CommentsPermalink





(ii) by striking `(140 percent in the case of a multiemployer plan)' in clause (i), andCommentsClose CommentsPermalink





(iii) by striking `clause (i)' in clause (iv) and inserting `clauses (i) and (v)'.CommentsClose CommentsPermalink





(h) Conforming Amendment Regarding Commercial Airlines- Paragraph (2) of section 402(a) of the Pension Protection Act of 2006 is amended by adding at the end the following: `In the case of an election under this paragraph, such sections shall apply with respect to such plan sponsor based on the effective date provisions in effect immediately before the enactment of section 1305 of this Act.'.CommentsClose CommentsPermalink

SEC. 2. EFFECTIVE DATE.

The amendments made by this Act shall take effect as if included in the enactment of the Pension Protection Act of 2006.CommentsClose CommentsPermalink