Pension Protection Technical Corrections Act of 2007

A bill to make technical corrections related to the Pension Protection Act of 2006.

12/19/2007--Passed Senate amended. Pension Protection Technical Corrections Act of 2007 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code, as amended by the Pension Protection Act of 2006, to make changes to rules governing defined benefit and defined contribution pension plans.
(Sec. 2) Modifies rules relating to increases in pension plan benefits while a waiver or amortization extension is in effect or with respect to retroactive amendments to such plans. Revises the definition of "target normal cost" with respect to increases and decreases in such costs. Requires the Secretary of the Treasury to prescribe rules for quarterly contributions to pension plans with a shortfall in 2008.
(Sec. 3) Revises the criteria for use of the shortfall funding method for multiemployer defined benefit plans. Requires the Secretary of the Treasury, in consultation with the Secretary of Labor, to establish criteria for required notices relating to multiemployer plans in endangered or critical status. Revises:
(1) criteria for implementation and enforcement of a multiemployer plan default schedule;
(2) the definition of plan sponsor for purposes of multiemployer plan funding rules; and
(3) the method for calculating the excise tax on trustees of multiemployer plans for failure to adopt a timely rehabilitation plan.
(Sec. 4) Extends until 2009 the temporary interest rate for pension plan funding.
(Sec. 5) Limits the coverage of the missing participant rules to qualified plans that did not provide for employer contributions.
(Sec. 6) Revises requirements relating to:
(1) annual funding notices for single and multiemployer defined benefit plans;
(2) termination information for pension plan participants;
(3) periodic pension benefit statements; and
(4) notices to pension plan participants or beneficiaries of blackout periods (i.e, restrictions on plan operations, including investment changes).

(Sec. 7) Modifies pension plan requirements relating to investment advice, prohibited transactions, and fiduciary rules.
(Sec. 8) Provides that failure to meet pension plan preservation of capital requirements constitutes a violation of ERISA age discrimination rules.

(Sec. 9) Modifies rules relating to:
(1) the deduction limit for single-employer pension plans;
(2) deductions for employer contributions to one or more defined contribution plans;
(3) rollovers from retirement plans to Roth individual retirement accounts (IRAs);
(4) rollovers by nonspouse beneficiaries of retirement plans;
(5) distributions from public pension plans for health and long-term care insurance for public safety officers; and
(6) survivor annuity plans of special trial judges of the U.S. Tax Court. Exempts assets transfers from health accounts to maintain a pension plan's funded status from the excise tax on reversions.

(Sec. 10) Revises the definition of "one-participant retirement plan" for purposes of ERISA diversification and participation requirements.
Expands rules allowing automatic contributions to employer pension plans. Requires the administrator of a combined pension plan (consisting of a defined benefit plan and a qualified cash or deferred arrangement) to treat such plans separately upon termination.

(Sec. 11) Provides that former spouses shall be entitled to survivor benefits under the Railroad Retirement Act if:
(1) the employee completed 10 years of service in the railroad industry (or five years of service after December 31, 1995);
(2) the spouse or former spouse has attained age 62; and
(3) the employee attains age 62 (or if deceased, would have attained age 62). Makes such provision effective for payments due after August 2007.

(Sec. 12) Prohibits states from reducing unemployment compensation by the amount of pension rollovers.
(Sec. 13) Modifies the formula for determining inclusion in gross income of distributions from individual retirement accounts (IRAs) for charitable purposes.
(Sec. 14) Provides that the value of assets for any ERISA plan under the averaging method shall be adjusted for contributions, distributions, and expected earnings as determined by the Secretary of the Treasury. Provides for an alternative method of meeting the definition of qualified optional survivor annuity.

(Sec. 15) Makes the amendments made by this Act effective as if originally included in the Pension Protection Act of 2006.


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Sponsor

• Sen. Edward Kennedy [D, MA]
• and 3 Co-Sponsors
  • Sen. Max Baucus [D, MT]
  • Sen. Michael Enzi [R, WY]
  • Sen. Charles Grassley [R, IA]
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Amendments

This bill has 1 amendments. See All AmendmentsHide All Amendments

Amendments to S.1974

Number	Status	Purpose
S.Amdt.3891	Pass	In the nature of a substitute.

Bill Status

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Introduced		Voted on by Senate		Voted on by House		Considered By President		Bill Becomes Law
August 02, 2007		December 19, 2007

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All Bill Actions

• Passed by Unanimous Consent in the Senate on Dec 19, 2007. Passed Senate with an amendment by Unanimous Consent.
• Dec 19, 2007: Measure laid before Senate by unanimous consent.
• Added to calendar on Aug 03, 2007: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 333..
• Aug 02, 2007: Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
• Introduced on Aug 02, 2007.

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Related Bills:

• H.R.3361

Related Issue Areas:

• Pensions
• Administrative procedure
• Defined benefit pension plans
• Defined contribution plans
• 9 more
• Department of the Treasury
• Executive departments
• Income tax
• Law
• Pension funds
• Standards
• Tax deductions
• Taxation
• Trusts and trustees

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In the News

January 09, 2008 Senate passes PPA technical corrections bill

The Senate passed the Pension Technical Corrections Bill (S. 1974) by unanimous consent on December 19, 2007. The bill will remain at the desk in the Senate ...

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August 24, 2007 Romblon State College

8 S. 1974. It has an initial enrollment of 25 students (15 males and 10 females). Subsequently after two years of operation, three degree programs were ...

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Blog Coverage

April 07, 2008 [Guidance Overview] House Passes PPA Technical Corrections Bill

The House-passed bill differs slightly from a PPA technical corrections bill (S. 1974) the Senate approved in December 2007. That means the House and Senate bills will need to be reconciled, a process expected to begin in April. ...

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Source: Ret plans - amendments required, incl....

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January 09, 2008 S.1974 A bill to make technical corrections related to the Pension ...

A bill to make technical corrections related to the Pension Protection Act of 2006.

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December 26, 2007 Revisiting Rollovers to NonSpouse Beneficiaries Before 2008

See, section 9(e) of S. 1974, the Pension Protection Technical Corrections Act of 2007, as introduced in the Senate on August 2, 2007 and section 9(e) of HR 3361, the Pension Protection Technical Corrections Act of 2007, as introduced ...

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