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S 1974 PCS

Calendar No. 333ESCommentsClose CommentsPermalink

110th CONGRESS 1st Session S. 1974

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To make technical corrections related to the Pension Protection Act of 2006.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. SHORT TITLE; REFERENCES TO ACTS.

(a) In General- This Act may be cited as the `Pension Protection Technical Corrections Act of 2007'.CommentsClose CommentsPermalink





(b) References to Acts- For purposes of this Act--CommentsClose CommentsPermalink





(1) AMENDMENT OF 1986 CODE- The term `1986 Code' means the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(2) AMENDMENT OF ERISA- The term `ERISA' means the Employee Retirement Income Security Act of 1974.CommentsClose CommentsPermalink





(3) 2006 ACT- The term `2006 Act' means the Pension Protection Act of 2006.CommentsClose CommentsPermalink

SEC. 2. AMENDMENTS RELATED TO TITLE I.

(a) Amendments Related to Sections 101 and 111-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Clause (i) of section 302(c)(1)(A) of ERISA is amended by striking `the plan is' and inserting `the plan are'.CommentsClose CommentsPermalink





(B) Section 302(c)(7) of ERISA is amended by inserting `which reduces the accrued benefit of any participant' after `subsection (d)(2)' in subparagraph (A).CommentsClose CommentsPermalink





(C) Section 302(d)(1) of ERISA is amended by striking `, the valuation date,'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Clause (i) of section 412(c)(1)(A) of the 1986 Code is amended by striking `the plan is' and inserting `the plan are'.CommentsClose CommentsPermalink





(B) Section 412(c)(7) of the 1986 Code is amended by inserting `which reduces the accrued benefit of any participant' after `subsection (d)(2)' in subparagraph (A).CommentsClose CommentsPermalink





(C) Section 412(d)(1) of the 1986 Code is amended by striking `, the valuation date,'.CommentsClose CommentsPermalink





(b) Amendments Related to Sections 102 and 112-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 303(b) of ERISA is amended to read as follows:CommentsClose CommentsPermalink





`(b) Target Normal Cost- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in subsection (i)(2) with respect to plans in at-risk status, the term `target normal cost' means, for any plan year, the excess of--CommentsClose CommentsPermalink





`(A) the sum of--CommentsClose CommentsPermalink





`(i) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plusCommentsClose CommentsPermalink





`(ii) the amount of plan-related expenses expected to be paid from plan assets during the plan year, overCommentsClose CommentsPermalink





`(B) the amount of mandatory employee contributions expected to be made during the plan year.CommentsClose CommentsPermalink





`(2) SPECIAL RULE FOR INCREASE IN COMPENSATION- For purposes of this subsection, if any benefit attributable to services performed in a preceding plan year is increased by reason of any increase in compensation during the current plan year, the increase in such benefit shall be treated as having accrued during the current plan year.'.CommentsClose CommentsPermalink





(B) Section 303(c)(5)(B)(iii) of ERISA is amended by inserting `beginning' before `after 2008'.CommentsClose CommentsPermalink





(BC) Section 303(c)(5)(B)(iv)(II) of ERISA is amended by inserting `for such year' after `beginning in 2007)'.CommentsClose CommentsPermalink





(CD) Section 303(f)(4)(A) of ERISA is amended by striking `paragraph (2)' and inserting `paragraph (3)'.CommentsClose CommentsPermalink





(DE) Section 303(h)(2)(F) of ERISA is amended--CommentsClose CommentsPermalink





(i) by striking `section 205(g)(3)(B)(iii)(I)) for such month' and inserting `section 205(g)(3)(B)(iii)(I) for such month)', andCommentsClose CommentsPermalink





(ii) by striking `subparagraph (B)' and inserting `subparagraph (C)'.CommentsClose CommentsPermalink





(E) The last sentence of section 303(i)(4)(B) of ERISA is amendedF) Section 303(i) of ERISA is amended--CommentsClose CommentsPermalink





(i) in paragraph (2)--CommentsClose CommentsPermalink





(I) by striking subparagraph (A) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(A) the excess of--CommentsClose CommentsPermalink





`(i) the sum of--CommentsClose CommentsPermalink





`(I) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, determined using the additional actuarial assumptions described in paragraph (1)(B), plusCommentsClose CommentsPermalink





`(II) the amount of plan-related expenses expected to be paid from plan assets during the plan year, overCommentsClose CommentsPermalink





`(ii) the amount of mandatory employee contributions expected to be made during the plan year, plus', andCommentsClose CommentsPermalink





(II) in subparagraph (B), by striking `the target normal cost (determined without regard to this paragraph) of the plan for the plan year' and inserting `the amount determined under subsection (b)(1)(A)(i) with respect to the plan for the plan year', andCommentsClose CommentsPermalink





(ii) by striking `subparagraph (A)(ii)' in the last sentence of paragraph (4)(B) and inserting `subparagraph (A)'.CommentsClose CommentsPermalink





(FG) Section 303(j)(3) of ERISA--CommentsClose CommentsPermalink





(i) is amended by adding at the end of subparagraph (A) the following new sentence: `In the case of plan years beginning in 2008, the funding shortfall for the preceding plan year may be determined using such methods of estimation as the Secretary of the Treasury may provide.',CommentsClose CommentsPermalink





(ii) by adding at the end of subparagraph (E) the following new clause:CommentsClose CommentsPermalink





`(iii) PLAN WITH ALTERNATE VALUATION DATE- The Secretary of the Treasury shall prescribe regulations for the application of this paragraph in the case of a plan which has a valuation date other than the first day of the plan year.', andCommentsClose CommentsPermalink





(iii) by striking `AND SHORT YEARS' in the heading of subparagraph (E) and inserting `, SHORT YEARS, AND YEARS WITH ALTERNATE VALUATION DATE'.CommentsClose CommentsPermalink





(GH) Section 303(k)(6)(B) of ERISA is amended by striking `, except' and all that follows and inserting a period.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 430(b) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(b) Target Normal Cost- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in subsection (i)(2) with respect to plans in at-risk status, the term `target normal cost' means, for any plan year, the excess of--CommentsClose CommentsPermalink





`(A) the sum of--CommentsClose CommentsPermalink





`(i) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plusCommentsClose CommentsPermalink





`(ii) the amount of plan-related expenses expected to be paid from plan assets during the plan year, overCommentsClose CommentsPermalink





`(B) the amount of mandatory employee contributions expected to be made during the plan year.CommentsClose CommentsPermalink





`(2) SPECIAL RULE FOR INCREASE IN COMPENSATION- For purposes of this subsection, if any benefit attributable to services performed in a preceding plan year is increased by reason of any increase in compensation during the current plan year, the increase in such benefit shall be treated as having accrued during the current plan year.'.CommentsClose CommentsPermalink





(B) Section 430(c)(5)(B)(iii) of the 1986 Code is amended by inserting `beginning' before `after 2008'.CommentsClose CommentsPermalink





(BC) Section 430(c)(5)(B)(iv)(II) of the 1986 Code is amended by inserting `for such year' after `beginning in 2007)'.CommentsClose CommentsPermalink





(CD) Section 430(f) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `as of the first day of the plan year' the second place it appears in the first sentence of paragraph (3)(A),CommentsClose CommentsPermalink





(ii) by striking `paragraph (2)' in paragraph (4)(A) and inserting `paragraph (3)',CommentsClose CommentsPermalink





(iii) by striking `paragraph (1), (2), or (4) of section 206(g)' in paragraph (6)(B)(iii) and inserting `subsection (b), (c), or (e) of section 436',CommentsClose CommentsPermalink





(iv) by striking `the sum of' in paragraph (6)(C), andCommentsClose CommentsPermalink





(v) by striking `of the Treasury' in paragraph (8).CommentsClose CommentsPermalink





(DE) Section 430(h)(2) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by inserting `and target normal cost' after `funding target' in subparagraph (B),CommentsClose CommentsPermalink





(ii) by striking `liabilities' and inserting `benefits' in subparagraph (B),CommentsClose CommentsPermalink





(iii) by striking `section 417(e)(3)(D)(i)) for such month' in subparagraph (F) and inserting `section 417(e)(3)(D)(i) for such month)', andCommentsClose CommentsPermalink





(iv) by striking `subparagraph (B)' in subparagraph (F) and inserting `subparagraph (C)'.CommentsClose CommentsPermalink





(E) TF) Section 430(i) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in paragraph (2)--CommentsClose CommentsPermalink





(I) by striking subparagraph (A) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(A) the excess of--CommentsClose CommentsPermalink





`(i) the sum of--CommentsClose CommentsPermalink





`(I) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, determined using the additional actuarial assumptions described in paragraph (1)(B), plusCommentsClose CommentsPermalink





`(II) the amount of plan-related expenses expected to be paid from plan assets during the plan year, overCommentsClose CommentsPermalink





`(ii) the amount of mandatory employee contributions expected to be made during the plan year, plus', andCommentsClose CommentsPermalink





(II) in subparagraph (B), by striking `the target normal cost (determined without regard to this paragraph) of the plan for the plan year' and inserting `the amount determined under subsection (b)(1)(A)(i) with respect to the plan for the plan year', andCommentsClose CommentsPermalink





(ii) by striking `subparagraph (A)(ii)' in the last sentence of section 430(i)(4)(B) of the 1986 Code is amended by striking `subparagraph (A)(ii)'paragraph (4)(B) and inserting `subparagraph (A)'.CommentsClose CommentsPermalink





(FG) Section 430(j)(3) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by adding at the end of subparagraph (A) the following new sentence: `In the case of plan years beginning in 2008, the funding shortfall for the preceding plan year may be determined using such methods of estimation as the Secretary may provide.',CommentsClose CommentsPermalink





(ii) by striking `section 302(c)' in subparagraph (D)(ii)(II) and inserting `section 412(c)',CommentsClose CommentsPermalink





(iii) by adding at the end of subparagraph (E) the following new clause:CommentsClose CommentsPermalink





`(iii) PLAN WITH ALTERNATE VALUATION DATE- The Secretary shall prescribe regulations for the application of this paragraph in the case of a plan which has a valuation date other than the first day of the plan year.', andCommentsClose CommentsPermalink





(iv) by striking `AND SHORT YEARS' in the heading of subparagraph (E) and inserting `, SHORT YEARS, AND YEARS WITH ALTERNATE VALUATION DATE'.CommentsClose CommentsPermalink





(GH) Section 430(k) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by inserting `(as provided under paragraph (2))' after `applies' in paragraph (1), andCommentsClose CommentsPermalink





(ii) by striking `, except' and all that follows in paragraph (6)(B) and inserting a period.CommentsClose CommentsPermalink





(c) Amendments Related to Sections 103 and 113-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 101(j) of ERISA is amended--CommentsClose CommentsPermalink





(i) in paragraph (2), by striking `section 206(g)(4)(B)' and inserting `section 206(g)(4)(A)'; andCommentsClose CommentsPermalink





(ii) by adding at the end the following: `The Secretary of the Treasury, in consultation with the Secretary, shall have the authority to prescribe rules applicable to the notices required under this subsection.'.CommentsClose CommentsPermalink





(B) Section 206(g)(1)(B)(ii) of ERISA is amended by striking `a funding' and inserting `an adjusted funding'.CommentsClose CommentsPermalink





(BC) The heading for section 206(g)(1)(C) of ERISA is amended by inserting `BENEFIT' after `EVENT'.CommentsClose CommentsPermalink





(CD) Section 206(g)(3)(E) of ERISA is amended by adding at the end the following new flush sentence:CommentsClose CommentsPermalink





`Such term shall not include the payment of a benefit which under section 203(e) may be immediately distributed without the consent of the participant.'.CommentsClose CommentsPermalink





(DE) Section 206(g)(5)(A)(iv) of ERISA is amended by inserting `adjusted' before `funding'.CommentsClose CommentsPermalink





(EF) Section 206(g)(9)(C) of ERISA is amended--CommentsClose CommentsPermalink





(i) by striking `without regard to this subparagraph and' in clause (i), andCommentsClose CommentsPermalink





(ii) in clause (iii)--CommentsClose CommentsPermalink





(I) by striking `without regard to this subparagraph' and inserting `without regard to the reduction in the value of assets under section 303(f)(4)', andCommentsClose CommentsPermalink





(II) by inserting `beginning' before `after' each place it appears.CommentsClose CommentsPermalink





(FG) Section 206(g) of ERISA is amended by redesignating paragraph (10) as paragraph (11) and by inserting after paragraph (9) the following new paragraph:CommentsClose CommentsPermalink





`(10) SECRETARIAL AUTHORITY FOR PLANS WITH ALTERNATE VALUATION DATE- In the case of a plan which has designated a valuation date other than the first day of the plan year, the Secretary of the Treasury may prescribe rules for the application of this subsection which are necessary to reflect the alternate valuation date.'.CommentsClose CommentsPermalink





(G) Section 101(j)(2) of ERISA is amended by striking `section 206(g)(4)(B)' and inserting `section 206(g)(4)(A)'.(H) Section 502(c)(4) of ERISA is amended by striking `subsection (j) or (k) of section 101 or 302(b)(7)(F)(iv)' and inserting `by any person' and all that follows through the period and inserting `by any person of subsection (j), (k), or (l) of section 101 or section 514(e)(3).'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 436(b)(2) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `section 303' and inserting `section 430' in the matter preceding subparagraph (A), andCommentsClose CommentsPermalink





(ii) by striking `a funding' and inserting `an adjusted funding' in subparagraph (B).CommentsClose CommentsPermalink





(B) Section 436(b)(3) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by inserting `BENEFIT' after `EVENT' in the heading, andCommentsClose CommentsPermalink





(ii) by striking `any event' in subparagraph (B) and inserting `an event'.CommentsClose CommentsPermalink





(C) Section 436(d)(5) of the 1986 Code is amended by adding at the end the following new flush sentence:CommentsClose CommentsPermalink





`Such term shall not include the payment of a benefit which under section 411(a)(11) may be immediately distributed without the consent of the participant.'.CommentsClose CommentsPermalink





(D) Section 436(f) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by inserting `adjusted' before `funding' in paragraph (1)(D), andCommentsClose CommentsPermalink





(ii) by striking `prefunding balance under section 430(f) or funding standard carryover balance' in paragraph (2) and inserting `prefunding balance or funding standard carryover balance under section 430(f)'.CommentsClose CommentsPermalink





(E) Section 436(j)(3) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in subparagraph (A)--CommentsClose CommentsPermalink





(I) by striking `without regard to this paragraph and',CommentsClose CommentsPermalink





(II) by striking `section 430(f)(4)(A)' and inserting `section 430(f)(4)', andCommentsClose CommentsPermalink





(III) by striking `paragraph (1)' and inserting `paragraphs (1) and (2)', andCommentsClose CommentsPermalink





(ii) in subparagraph (C)--CommentsClose CommentsPermalink





(I) by striking `without regard to this paragraph' and inserting `without regard to the reduction in the value of assets under section 430(f)(4)', andCommentsClose CommentsPermalink





(II) by inserting `beginning' before `after' each place it appears.CommentsClose CommentsPermalink





(F) Section 436 of the 1986 Code is amended by redesignating subsection (k) as subsection (m) and by inserting after subsection (j) the following new subsections:CommentsClose CommentsPermalink





`(k) Secretarial Authority for Plans With Alternate Valuation Date- In the case of a plan which has designated a valuation date other than the first day of the plan year, the Secretary may prescribe rules for the application of this section which are necessary to reflect the alternate valuation date.CommentsClose CommentsPermalink





`(l) Single-Employer Plan- For purposes of this section, the term `single-employer plan' means a plan which is not a multiemployer plan.'.CommentsClose CommentsPermalink





(3) AMENDMENTS TO 2006 ACT- (A) Section 103(b) of the 2006 Act is amended by adding at the end the following:`(3) ADMINISTRATIVE PROVISION- The Secretary of the Treasury, in consultation with the Secretary of Labor, shall have the authority to prescribe rules applicable to the notices required under section 101(j) of the Employee Retirement Income Security Act of 1974 (as added by this section).'.(B)Sections 103(c)(2)(A)(ii) and 113(b)(2)(A)(ii) of the 2006 Act are each amended--CommentsClose CommentsPermalink





(iA) by striking `subsection' and inserting `section', andCommentsClose CommentsPermalink





(iiB) by striking `subparagraph' and inserting `paragraph'.CommentsClose CommentsPermalink





(C) Section 502(b)(2) of the 2006 Act, and the amendment made by such section, are repealed.(D) Section 902(f)(2) of the 2006 Act, and the amendment made by such section, are repealed.(d) Amendments Related to Sections 107 and 114-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 103(d) of ERISA is amended--CommentsClose CommentsPermalink





(Ai) in paragraph (3), by striking `the normal costs, the accrued liabilities' and inserting `the normal costs or target normal costs, the accrued liabilities or funding target', andCommentsClose CommentsPermalink





(Bii) by striking paragraph (7) and inserting the following new paragraph:CommentsClose CommentsPermalink





`(7) A certification of the contribution necessary to reduce the minimum required contribution determined under section 303, or the accumulated funding deficiency determined under section 304, to zero.'.CommentsClose CommentsPermalink





(B) Section 4071 of ERISA is amended by striking `as section 303(k)(4) or 307(e)' and inserting `or section 303(k)(4),'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 401(a)(29) of the 1986 Code is amended by striking `ON PLANS IN AT-RISK STATUS' in the heading.CommentsClose CommentsPermalink





(B) Section 401(a)(32)(C) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `section 430(j)' and inserting `section 430(j)(3)', andCommentsClose CommentsPermalink





(ii) by striking `paragraph (5)(A)' and inserting `section 430(j)(4)(A)'.CommentsClose CommentsPermalink





(C) Section 401(a)(33) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `section 412(c)(2)' in subparagraph (B)(iii) and inserting `section 412(d)(2)', andCommentsClose CommentsPermalink





(ii) by striking `section 412(b)(2) (without regard to subparagraph (B) thereof)' in subparagraph (D) and inserting `section 412(b)(1), without regard to section 412(b)(2)'.CommentsClose CommentsPermalink





(D) Section 411 of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `section 412(c)(2)' in subsection (a)(3)(C) and inserting `section 412(d)(2)', andCommentsClose CommentsPermalink





(ii) by striking `section 412(e)(2)' in subsection (d)(6)(A) and inserting `section 412(d)(2)'.CommentsClose CommentsPermalink





(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(I) the sum of the funding target and target normal cost determined under section 430, over'.CommentsClose CommentsPermalink





(F) Section 4971 of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `required minimum' in subsection (b)(1) and inserting `minimum required',CommentsClose CommentsPermalink





(ii) by inserting `or unpaid minimum required contribution, whichever is applicable' after `accumulated funding deficiency' each place it appears in subsections (c)(3) and (d)(1), andCommentsClose CommentsPermalink





(iii) by striking `section 412(a)(1)(A)' in subsection (e)(1) and inserting `section 412(a)(2)'.CommentsClose CommentsPermalink





(3) AMENDMENT TO 2006 ACT- Section 114 of the 2006 Act is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(g) Effective Dates-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amendments made by this section shall apply to plan years beginning after 2007.CommentsClose CommentsPermalink





`(2) EXCISE TAX- The amendments made by subsection (e) shall apply to taxable years beginning after 2007, but only with respect to plan years described in paragraph (1) which end with or within any such taxable year.'.CommentsClose CommentsPermalink





(e) Amendment Related to Section 116- Section 409A(b)(3)(A)(ii) of the 1986 Code is amended by inserting `to an applicable covered employee' after `under the plan'.CommentsClose CommentsPermalink

SEC. 3. AMENDMENTS RELATED TO TITLE II.

(a) Amendment Related to Sections 201 and 211- Section 201(b)(2)(A) of the 2006 Act is amended by striking `has not used' and inserting `has not adopted, or ceased using,'.CommentsClose CommentsPermalink





(b) Amendments Related to Sections 202 and 212-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 305(b)(3)(C) of ERISA is amended by striking `section 101(b)(4)' and inserting `section 101(b)(1)'.CommentsClose CommentsPermalink





(B) Section 305(b)(3)(D) of ERISA is amended by striking `The Secretary' in clause (iii) and inserting `The Secretary of the Treasury, in consultation with the Secretary'.CommentsClose CommentsPermalink





(C) Section 305(c)(7) of ERISA is amended--CommentsClose CommentsPermalink





(i) by striking `to agree on' and all that follows in subparagraph (A)(ii) and inserting `to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor,', andCommentsClose CommentsPermalink





(ii) by striking subparagraph (B) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(B) DATE OF IMPLEMENTATION- The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph (A) expires.', andCommentsClose CommentsPermalink





(iii) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(C) FAILURE TO MAKE SCHEDULED CONTRIBUTIONS- Any failure to make a contribution under a schedule of contribution rates provided under this paragraph shall be treated as a delinquent contribution under section 515 and shall be enforceable as such.'.CommentsClose CommentsPermalink





(D) Section 305(e) of ERISA is amended--CommentsClose CommentsPermalink





(i) in paragraph (3)(C)--CommentsClose CommentsPermalink





(I) by striking all that follows `to adopt a' in clause (i)(II) and inserting `to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i),',CommentsClose CommentsPermalink





(II) by striking clause (ii) and inserting the following new clause:CommentsClose CommentsPermalink





`(ii) DATE OF IMPLEMENTATION- The date specified in this clause is the date which is 180 days after the date on which the collective bargaining agreement described in clause (i) expires.', andCommentsClose CommentsPermalink





(III) by adding at the end the following new clause:CommentsClose CommentsPermalink





`(iii) FAILURE TO MAKE SCHEDULED CONTRIBUTIONS- Any failure to make a contribution under a schedule of contribution rates provided under this subsection shall be treated as a delinquent contribution under section 515 and shall be enforceable as such.',CommentsClose CommentsPermalink





(ii) in paragraph (4)--CommentsClose CommentsPermalink





(I) by striking `the date of' in subparagraph (A)(ii), andCommentsClose CommentsPermalink





(II) by striking `and taking' in subparagraph (B) and inserting `but taking',CommentsClose CommentsPermalink





(iii) in paragraph (6)--CommentsClose CommentsPermalink





(I) by striking `paragraph (1)(B)(i)' and inserting `the last sentence of paragraph (1)', andCommentsClose CommentsPermalink





(II) by striking `established' and inserting `establish',CommentsClose CommentsPermalink





(iv) in paragraph (8)(C)(iii)--CommentsClose CommentsPermalink





(I) by striking `the Secretary' in subclause (I) and inserting `the Secretary of the Treasury, in consultation with the Secretary', andCommentsClose CommentsPermalink





(II) by striking `Secretary' in the last sentence and inserting `Secretary of the Treasury', andCommentsClose CommentsPermalink





(v) by striking `an employer's withdrawal liability' in paragraph (9)(B) and inserting `the allocation of unfunded vested benefits to an employer'.CommentsClose CommentsPermalink





(E) Section 305(f)(2)(A)(i) of ERISA is amended by inserting `to a participant or beneficiary whose annuity starting date (as defined in section 205(h)(2)) occurs after such date,' after the comma at the end.(F) Section 305(g) of ERISA is amended by inserting `under subsection (c)' after `funding improvement plan' the first place it appears.CommentsClose CommentsPermalink





(GF) Section 302(b)(3) of ERISA is amended by striking `the plan adopts' and inserting `the plan sponsor adopts'.CommentsClose CommentsPermalink





(HG) Section 502(c)(2) of ERISA is amended by striking `101(b)(4)' and inserting `101(b)(1)'.CommentsClose CommentsPermalink





(IH) Section 502(c)(8)(A) of ERISA is amended by inserting `plan' after `multiemployer'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 432(b)(3)(C) of the 1986 Code is amended by striking `section 101(b)(4)' and inserting `section 101(b)(1)'.CommentsClose CommentsPermalink





(B) Section 432(b)(3)(D)(iii) of the 1986 Code is amended by striking `The Secretary of Labor' and inserting `The Secretary, in consultation with the Secretary of Labor'.CommentsClose CommentsPermalink





(C) Section 432(c) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in paragraph (3), by striking `section 304(d)' in subparagraph (A)(ii) and inserting `section 431(d)', andCommentsClose CommentsPermalink





(ii) in paragraph (7)--CommentsClose CommentsPermalink





(I) by striking `to agree on' and all that follows in subparagraph (A)(ii) and inserting `to adopt a contribution schedule with terms consistent with the funding improvement plan and a schedule from the plan sponsor,', andCommentsClose CommentsPermalink





(II) by striking subparagraph (B) and inserting the following new subparagraph:CommentsClose CommentsPermalink





`(B) DATE OF IMPLEMENTATION- The date specified in this subparagraph is the date which is 180 days after the date on which the collective bargaining agreement described in subparagraph (A) expires.'.CommentsClose CommentsPermalink





(D) Section 432(e) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in paragraph (3)(C)--CommentsClose CommentsPermalink





(I) by striking all that follows `to adopt a' in clause (i)(II) and inserting `to adopt a contribution schedule with terms consistent with the rehabilitation plan and a schedule from the plan sponsor under paragraph (1)(B)(i),', andCommentsClose CommentsPermalink





(II) by striking clause (ii) and inserting the following new clause:CommentsClose CommentsPermalink





`(ii) DATE OF IMPLEMENTATION- The date specified in this clause is the date which is 180 days after the date on which the collective bargaining agreement described in clause (i) expires.',CommentsClose CommentsPermalink





(ii) in paragraph (4)--CommentsClose CommentsPermalink





(I) by striking `the date of' in subparagraph (A)(ii), andCommentsClose CommentsPermalink





(II) by striking `and taking' in subparagraph (B) and inserting `but taking',CommentsClose CommentsPermalink





(iii) in paragraph (6)--CommentsClose CommentsPermalink





(I) by striking `paragraph (1)(B)(i)' and inserting `the last sentence of paragraph (1)', andCommentsClose CommentsPermalink





(II) by striking `established' and inserting `establish',CommentsClose CommentsPermalink





(iv) in paragraph (8)--CommentsClose CommentsPermalink





(I) by striking `section 204(g)' in subparagraph (A)(i) and inserting `section 411(d)(6)',CommentsClose CommentsPermalink





(II) by inserting `of the Employee Retirement Income Security Act of 1974' after `4212(a)' in subparagraph (C)(i)(II),CommentsClose CommentsPermalink





(III) by striking `the Secretary of Labor' in subparagraph (C)(iii)(I) and inserting `the Secretary, in consultation with the Secretary of Labor', andCommentsClose CommentsPermalink





(IV) by striking `the Secretary of Labor' in the last sentence of subparagraph (C)(iii) and inserting `the Secretary', andCommentsClose CommentsPermalink





(v) by striking `an employer's withdrawal liability' in paragraph (9)(B) and inserting `the allocation of unfunded vested benefits to an employer'.CommentsClose CommentsPermalink





(E) Section 432(f)(2)(A)(i) of the 1986 Code is amended--(i) by striking `section 411(b)(1)(A)' and inserting `section 411(a)(9)', and(ii) by inserting `to a participant or beneficiary whose annuity starting date (as defined in section 417(f)(2)) occurs after such date,' after the comma at the end.CommentsClose CommentsPermalink





(F) Section 432(g) of the 1986 Code is amended by inserting `under subsection (c)' after `funding improvement plan' the first place it appears.CommentsClose CommentsPermalink





(G) Section 432(i) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `section 412(a)' in paragraph (3) and inserting `section 431(a)', andCommentsClose CommentsPermalink





(ii) by striking paragraph (9) and inserting the following new paragraph:CommentsClose CommentsPermalink





`(9) PLAN SPONSOR- For purposes of this section, section 431, and section 4971(g)--CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `plan sponsor' means, with respect to any multiemployer plan, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan.CommentsClose CommentsPermalink





`(B) SPECIAL RULE FOR SECTION 404(c) PLANS- In the case of a plan described in section 404(c) (or a continuation of such plan), such term means the bargaining parties described in paragraph (1).'.CommentsClose CommentsPermalink





(H) Section 412(b)(3) of the 1986 Code is amended by striking `the plan adopts' and inserting `the plan sponsor adopts'.CommentsClose CommentsPermalink





(I) Section 4971(g)(4) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in subparagraph (B)(ii), by striking `first day of' and inserting `day following the close of', andCommentsClose CommentsPermalink





(ii) by striking clause (ii) of subparagraph (C) and inserting the following new clause:CommentsClose CommentsPermalink





`(ii) PLAN SPONSOR- For purposes of clause (i), the term `plan sponsor' has the meaning given such term by section 432(i)(9).'.CommentsClose CommentsPermalink





(3) AMENDMENTS TO 2006 ACT-CommentsClose CommentsPermalink





(A) Section 212(b)(2) of the 2006 Act is amended by striking `Section 4971(c)(2) of such Code' and inserting `Section 4971(e)(2) of such Code'.CommentsClose CommentsPermalink





(B) Section 212(e)(1) of the 2006 Act is amended by inserting `, except that the amendments made by subsection (b) shall apply to taxable years beginning after 2007, but only with respect to plan years beginning after 2007 which end with or within any such taxable year' before the period at the end.CommentsClose CommentsPermalink





(C) Section 212(e)(2) of the 2006 Act is amended by striking `section 305(b)(3) of the Employee Retirement Income Security Act of 1974' and inserting `section 432(b)(3) of the Internal Revenue Code of 1986'.CommentsClose CommentsPermalink

SEC. 4. AMENDMENTS RELATED TO TITLE III.

(a) Amendment Related to Section 301- Clause (ii) of section 101(c)(2)(A) of the Pension Funding Equity Act of 2004, as amended by section 301(c) of the 2006 Act, is amended by striking `2008' and inserting `2009'.CommentsClose CommentsPermalink





(b) Amendments Related to Section 302-CommentsClose CommentsPermalink





(1) AMENDMENT TO ERISA- Section 205(g)(3)(B)(iii)(II) of ERISA is amended by striking `section 205(g)(3)(B)(iii)(II)' and inserting `section 205(g)(3)(A)(ii)(II)'.CommentsClose CommentsPermalink





(2) AMENDMENT TO 1986 CODE-S TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 417(e)(3)(D)(i) of the 1986 Code is amended by striking `clause (ii)' and inserting `subparagraph (C)'.CommentsClose CommentsPermalink





(B) Section 415(b)(2)(E)(v) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(v) For purposes of adjusting any benefit or limitation under subparagraph (B), (C), or (D), the mortality table used shall be the applicable mortality table (within the meaning of section 417(e)(3)(B)).'.CommentsClose CommentsPermalink

SEC. 5. AMENDMENTS RELATED TO TITLE IV.

(a) Amendment Related to Section 401- Section 4006(a)(3)(A)(i) of ERISA is amended by striking `1990' and inserting `2005'.CommentsClose CommentsPermalink





(b) Amendment Related to Section 402- Section 402(c)(1)(A) of the 2006 Act is amended by striking `commercial airline' and inserting `commercial'.CommentsClose CommentsPermalink





(c) Amendment Related to Section 408- Section 4044(e) of ERISA, as added by section 408(b)(2) of the 2006 Act, is redesignated as subsection (f).CommentsClose CommentsPermalink





(d) Amendments Related to Section 409-(1) Section 4041(b)(5)(A) of ERISA is amended by striking `subparagraph (B)' and inserting `subparagraphs (B) and (D)'.CommentsClose CommentsPermalink





(2) Section 4041(b)(5)(D) of ERISA is amended by striking `after' and inserting `before'.(e) Amendments Related to Section 410- Section 4050(d)(4)(A) of ERISA is amended--CommentsClose CommentsPermalink





(1) by striking `and' at the end of clause (i), andCommentsClose CommentsPermalink





(2) by striking clause (ii) and inserting the following new clauses:CommentsClose CommentsPermalink





`(ii) which is not a plan described in paragraph (2), (3), (4), (6), (7), (8), (9), (10), or (11) of section 4021(b), andCommentsClose CommentsPermalink





`(iii) which, was a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code, and'.CommentsClose CommentsPermalink

SEC. 6. AMENDMENTS RELATED TO TITLE V.

(a) Amendment Related to Section 501- Section 101(f)(2)(B)(ii) of ERISA is amended--CommentsClose CommentsPermalink





(1) by striking `for which the latest annual report filed under section 104(a) was filed' in subclause (I)(aa) and inserting `to which the notice relates', andCommentsClose CommentsPermalink





(2) inby striking subclause (II)--(A) by inserting `, determined and inserting the following new subclause:CommentsClose CommentsPermalink





`(II) in the case of a multiemployer plan, a statement, for the plan year to which the notice relates and the preceding 2 plan years, of the value of the plan assets (determined both in the same manner as under section 304 (and in the case of assets, also in the same manner as underand under the rules of subclause (I)(bb)),' after `assets and liabilities', and(B) by striking `as the last day of such plan year and the value of the plan liabilities (determined in the same manner as under section 304 except that the method specified in section 305(i)(8) shall be used),'.CommentsClose CommentsPermalink





(b) Amendments Related to Section 502-CommentsClose CommentsPermalink





(1) Section 101(k)(2) of ERISA is amended by filing at the end the following new flush sentence:CommentsClose CommentsPermalink





`Subparagraph (C)(i) shall not apply to individually identifiable information with respect to any plan investment manager or adviser, or with respect to any other person (other than an employee of the plan) preparing a financial report required to be included under paragraph (1)(B).'.CommentsClose CommentsPermalink





(2) Section 4221 of ERISA is amended by striking subsection (e) and by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.CommentsClose CommentsPermalink





(c) Amendments Related to Section 503-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 104(b)(3) of ERISA is amended by--CommentsClose CommentsPermalink





(i) striking `section 103(f)' and inserting `section 101(f)', andCommentsClose CommentsPermalink





(ii) striking `the administrators' and inserting `the administrator'.CommentsClose CommentsPermalink





(B) Section 104(d)(1)(E)(ii) of ERISA is amended by inserting `funding' after `plan's'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 2006 ACT- Section 503(e) of the 2006 Act is amended by striking `section 101(f)' and inserting `section 104(d)'.CommentsClose CommentsPermalink





(d) Amendment Related to Section 505- Section 4010(d)(2)(B) of ERISA is amended by striking `section 302(d)(2)' and inserting `section 303(d)(2)'.CommentsClose CommentsPermalink





(e) Amendments Related to Section 506-CommentsClose CommentsPermalink





(1) Section 4041(c)(2)(D)(i) of ERISA is amended by striking `subsection (a)(2)' the second place it appears and inserting `subparagraph (A) or the regulations under subsection (a)(2)'.CommentsClose CommentsPermalink





(2) Section 4042(c)(3)(C)(i) of ERISA is amended--CommentsClose CommentsPermalink





(A) by striking `and plan sponsor' and inserting `, the plan sponsor, or the corporation', andCommentsClose CommentsPermalink





(B) by striking `subparagraph (A)(i)' and inserting `subparagraph (A)'.CommentsClose CommentsPermalink





(f) Amendments Related to Section 508- Section 209(a) of ERISA is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)--CommentsClose CommentsPermalink





(A) by striking `regulations prescribed by the Secretary' and inserting `such regulations as the Secretary may prescribe', andCommentsClose CommentsPermalink





(B) by striking the last sentence and inserting `The report required under this paragraph shall be in the same form, and contain the same information, as periodic benefit statements under section 105(a).', andCommentsClose CommentsPermalink





(2) by striking paragraph (2) and inserting the following:CommentsClose CommentsPermalink





`(2) If more than one employer adopts a plan, each such employer shall furnish to the plan administrator the information necessary for the administrator to maintain the records, and make the reports, required by paragraph (1). Such administrator shall maintain the records, and make the reports, required by paragraph (1).'CommentsClose CommentsPermalink





(g) Amendment Related to Section 509- Section 101(i)(8)(B) of ERISA is amended to read as follows:CommentsClose CommentsPermalink





`(B) ONE-PARTICIPANT RETIREMENT PLAN- For purposes of subparagraph (A), the term `one-participant retirement plan' means a retirement plan that on the first day of the plan year--CommentsClose CommentsPermalink





`(i) covered only one individual (or the individual and the individual's spouse) and the individual (or the individual and the individual's spouse) owned 100 percent of the plan sponsor (whether or not incorporated), orCommentsClose CommentsPermalink





`(ii) covered only one or more partners (or partners and their spouses) in the plan sponsor.'.CommentsClose CommentsPermalink

SEC. 7. AMENDMENTS RELATED TO TITLE VI.

(a) Amendments Related to Section 601-CommentsClose CommentsPermalink





(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 408(g)(3)(D)(ii) of ERISA is amended by striking `subsection (b)(14)(B)(ii)' and inserting `subsection (b)(14)(A)(ii)'.CommentsClose CommentsPermalink





(B) Section 408(g)(6)(A)(i) of ERISA is amended by striking `financial adviser' and inserting `fiduciary adviser'.CommentsClose CommentsPermalink





(C) Section 408(g)(11)(A) of ERISA is amended--CommentsClose CommentsPermalink





(i) by striking `the participant' each place it appears and inserting `a participant', andCommentsClose CommentsPermalink





(ii) by striking `section 408(b)(4)' in clause (ii) and inserting `subsection (b)(4)'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 4975(d)(17) of the 1986 Code, in the matter preceding subparagraph (A), is amended by striking `and that permits' and inserting `that permits'.CommentsClose CommentsPermalink





(B) Section 4975(f)(8) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) in subparagraph (A), by striking `subsection (b)(14)' and inserting `subsection (d)(17)',CommentsClose CommentsPermalink





(ii) in subparagraph (C)(iv)(II), by striking `subsection (b)(14)(B)(ii)' and inserting `(d)(17)(A)(ii)',CommentsClose CommentsPermalink





(iii) in subparagraph (F)(i)(I), by striking `financial adviser' and inserting `fiduciary adviser,',CommentsClose CommentsPermalink





(iv) in subparagraph (I), by striking `section 406' and inserting `subsection (c)', andCommentsClose CommentsPermalink





(iv) in subparagraph (J)(i)--CommentsClose CommentsPermalink





(I) by striking `the participant' each place it appears and inserting `a participant',CommentsClose CommentsPermalink





(II) in the matter preceding subclause (I), by inserting `referred to in subsection (e)(3)(B)' after `investment advice', andCommentsClose CommentsPermalink





(III) in subclause (II), by striking `section 408(b)(4)' and inserting `subsection (d)(4)'.CommentsClose CommentsPermalink





(3) AMENDMENT TO 2006 ACT- Section 601(b)(4) of the 2006 Act is amended by striking `section 4975(c)(3)(B)' and inserting `section 4975(e)(3)(B)'.CommentsClose CommentsPermalink





(b) Amendments Related to Section 611-CommentsClose CommentsPermalink





(1) AMENDMENT TO ERISA- Section 408(b)(18)(C) of ERISA is amended by striking `or less'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE- Section 4975(d) of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) in the matter preceding subparagraph (A) of paragraph (18)--CommentsClose CommentsPermalink





(i) by striking `party in interest' and inserting `disqualified person', andCommentsClose CommentsPermalink





(ii) by striking `subsection (e)(3)(B)' and inserting `subsection (e)(3)',CommentsClose CommentsPermalink





(B) in paragraphs (19), (20), and (21), by striking `party in interest' each place it appears and inserting `disqualified person', andCommentsClose CommentsPermalink





(C) by striking `or less' in paragraph (21)(C).CommentsClose CommentsPermalink





(c) Amendments Related to Section 612- Section 4975(f)(11)(B)(i) of the 1986 Code is amended by--CommentsClose CommentsPermalink





(1) inserting `of the Employee Retirement Income Security Act of 1974' after `section 407(d)(1)', andCommentsClose CommentsPermalink





(2) inserting `of such Act' after `section 407(d)(2)'.CommentsClose CommentsPermalink





(d) Amendments Related to Section 621- Section 404(c)(1) of ERISA is amended--CommentsClose CommentsPermalink





(1) by inserting `(or any period that would be a blackout period but for the fact that it is a period of 3 consecutive business days or less)' after `blackout period' in subparagraph (A)(ii), andCommentsClose CommentsPermalink





(2) by inserting the following new sentence at the end of subparagraph (B): `In the case of any period that would be a blackout period but for the fact that it is a period of 3 consecutive business days or less, the preceding sentence shall apply to such period if the person referred to in subparagraph (A)(ii) meets the requirements described in the preceding sentence with respect to such period in the same manner as if it were a blackout period.'CommentsClose CommentsPermalink





(e) Amendments Related to Section 624- Section 404(c)(5) of ERISA is amended by striking `participant' each place it appears and inserting `participant or beneficiary'.CommentsClose CommentsPermalink

SEC. 8. AMENDMENTS RELATED TO TITLE VII.

(1) AMENDMENTS TO ERISA-CommentsClose CommentsPermalink





(A) Section 204(b)(5) of ERISA is amended--(i) by striking `clause' in subparagraph (A)(iii) and inserting `subparagraph', and(ii) by inserting `otherwise' before `allowable' in subparagraph (C).(B) Section 203((f)(1)(B) of ERISA is3(f)(1)(B) of ERISA is amended to read as follows:CommentsClose CommentsPermalink





`(B) the requirements of section 204(c) or 205(g), or the requirements of subsection (e), with respect to accrued benefits derived from employer contributions,'.CommentsClose CommentsPermalink





(B) Section 204(b)(5) of ERISA is amended--CommentsClose CommentsPermalink





(i) by striking `clause' in subparagraph (A)(iii) and inserting `subparagraph', andCommentsClose CommentsPermalink





(ii) by inserting `otherwise' before `allowable' in subparagraph (C).CommentsClose CommentsPermalink





(C) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is amended to read as follows:CommentsClose CommentsPermalink





`(II) PRESERVATION OF CAPITAL- An applicable defined benefit plan shall be treated as failing to meet the requirements of paragraph (1)(H) unless the plan provides that an interest credit (or equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account.'.CommentsClose CommentsPermalink





(2) AMENDMENTS TO 1986 CODE-CommentsClose CommentsPermalink





(A) Section 411(b)(5) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `clause' in subparagraph (A)(iii) and inserting `subparagraph', andCommentsClose CommentsPermalink





(ii) by inserting `otherwise' before `allowable' in subparagraph (C).CommentsClose CommentsPermalink





(B) Section 411(a)(13)(A) of the 1986 Code is amended--CommentsClose CommentsPermalink





(i) by striking `paragraph (2)' in clause (i) and inserting `subparagraph (B)',CommentsClose CommentsPermalink





(ii) by striking clause (ii) and inserting the following new clause:CommentsClose CommentsPermalink





`(ii) the requirements of subsection (a)(11) or (c), or the requirements of section 417(e), with respect to accrued benefits derived from employer contributions,', andCommentsClose CommentsPermalink





(iii) by striking `paragraph (3)' in the matter following clause (ii) and inserting `subparagraph (C)'.CommentsClose CommentsPermalink





(C) Subclause (II) of section 411(b)(5)(B)(i) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(II) PRESERVATION OF CAPITAL- An applicable defined benefit plan shall be treated as failing to meet the requirements of paragraph (1)(H) unless the plan provides that an interest credit (or equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account.'.CommentsClose CommentsPermalink





(3) AMENDMENTS TO 2006 ACT-CommentsClose CommentsPermalink





(A) Section 701(d)(2) of the 2006 Act is amended by striking `204(g)' and inserting `205(g)'.CommentsClose CommentsPermalink





(B) Section 701(e) of the 2006 Act is amended--CommentsClose CommentsPermalink





(i) by inserting `on or' after `period' in paragraph (3),CommentsClose CommentsPermalink





(ii) in paragraph (4)--CommentsClose CommentsPermalink





(I) by inserting `the earlier of' after `before' in the matter preceding subparagraph (A), andCommentsClose CommentsPermalink





(II) by striking `earlier' and inserting `later' in subparagraph (A),CommentsClose CommentsPermalink





(iii) by inserting `on or' before `after' each place it appears in paragraph (5), andCommentsClose CommentsPermalink





(iv) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) SPECIAL RULE FOR VESTING REQUIREMENTS- The requirements of section 203(f)(2) of the Employee Retirement Income Security Act of 1974 and section 411(a)(13)(B) of the Internal Revenue Code of 1986 (as added by this Act)--CommentsClose CommentsPermalink





`(A) shall not apply to a participant who does not have an hour of service after the effective date of such requirements (as otherwise determined under this subsection); andCommentsClose CommentsPermalink





`(B) in the case of a plan other than a plan described in paragraph (3) or (4), shall apply to plan years ending on or after June 29, 2005.'.CommentsClose CommentsPermalink

SEC. 9. AMENDMENTS RELATED TO TITLE VIII.

(a) Amendments Related to Section 801-CommentsClose CommentsPermalink





(1) Section 404(o) of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) by striking `430(g)(2)' in paragraph (2)(A)(ii) and inserting `430(g)(3)', andCommentsClose CommentsPermalink





(B) by striking `412(f)(4)' in paragraph (4)(B) and inserting `412(d)(3)'.CommentsClose CommentsPermalink





(2) Section 404(a)(7)(A) of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) by striking the next to last sentence, andCommentsClose CommentsPermalink





(B) by striking `the plan's funding shortfall determined under section 430' in the last sentence and inserting `the excess (if any) of the plan's funding target (as defined in section 430(d)(1)) over the value of the plan's assets (as determined under section 430(g)(3))'.CommentsClose CommentsPermalink





(b) Amendment Related to Section 803- Clause (iii) of section 404(a)(7)(C) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(iii) LIMITATION- In the case of employer contributions to 1 or more defined contribution plans--CommentsClose CommentsPermalink





`(I) if such contributions do not exceed 6 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under such plans, this paragraph shall not apply to such contributions or to employer contributions to the defined benefit plans to which this paragraph would otherwise apply by reason of contributions to the defined contribution plans, andCommentsClose CommentsPermalink





`(II) if such contributions exceed 6 percent of such compensation, this paragraph shall be applied by only taking into account such contributions to the extent of such excess.CommentsClose CommentsPermalink





For purposes of this clause, amounts carried over from preceding taxable years under subparagraph (B) shall be treated as employer contributions to 1 or more defined contributions plans to the extent attributable to employer contributions to such plans in such preceding taxable years.'.CommentsClose CommentsPermalink





(c) Amendment Related to Section 824-s Related to Section 824-CommentsClose CommentsPermalink





(1) Section 408A(c)(3)(B) of the 1986 Code, as in effect after the amendments made by section 824(b)(1) of the 2006 Act, is amended--CommentsClose CommentsPermalink





(A) by striking the second `an' before `eligible',CommentsClose CommentsPermalink





(B) by striking `other than a Roth IRA', andCommentsClose CommentsPermalink





(C) by adding at the end the following new flush sentence:CommentsClose CommentsPermalink





`This subparagraph shall not apply to a qualified rollover contribution from a Roth IRA or to a qualified rollover contribution from a designated Roth account which is a rollover contribution described in section 402A(c)(3)(A).'CommentsClose CommentsPermalink





(2) Section 408A(d)(3)(B), as in effect after the amendments made by section 824(b)(2)(B) of the 2006 Act, is amended by striking `(other than a Roth IRA)' and by inserting at the end the following new sentence: `This paragraph shall not apply to a distribution which is a qualified rollover contribution from a Roth IRA or a qualified rollover contribution from a designated Roth account which is a rollover contribution described in section 402A(c)(3)(A)'.CommentsClose CommentsPermalink





(d) Amendment to Section 827- The first sentence of section 72(t)(2)(G)(iv) of the 1986 Code is amended by inserting `on or' before `before'.CommentsClose CommentsPermalink





(e) Amendments Related to Section 829-CommentsClose CommentsPermalink





(1) Section 402(c)(11) of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) by inserting `described in paragraph (8)(B)(iii)' after `eligible retirement plan' in subparagraph (A), andCommentsClose CommentsPermalink





(B) by striking `trust' before `designated beneficiary' in subparagraph (B).CommentsClose CommentsPermalink





(2)(A) Section 401(a)(31)(D) of the 19862(f)(2)(A) of the 1986 Code is amended by adding at the end the following new sentence: `Such term shall include any distribution which is treated as an eligible rollover distribution by reason of section 402(c)(11), 403(a)(4)(B), 403(b)(8)(B), or 457(e)(16)(B).'CommentsClose CommentsPermalink





(B) Clause (i) of section 402(c)(11) of the 1986 Code is amended by striking `for purposes of this subsection'.CommentsClose CommentsPermalink





(C) The amendment made by subparagraph (A)s made by this paragraph shall apply with respect to plan years beginning after December 31, 20078.CommentsClose CommentsPermalink





(f) Amendment Related to Section 832- Section 415(f) of the 1986 Code is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).CommentsClose CommentsPermalink





(g) Amendments Related to Section 833-CommentsClose CommentsPermalink





(1) Section 408A(c)(3)(C) of the 1986 Code, as added by section 833(c) of the 2006 Act, is redesignated as subparagraph (E).CommentsClose CommentsPermalink





(2) In the case of taxable years beginning after December 31, 2009, section 408A(c)(3)(E) of the 1986 Code (as redesignated by paragraph (1))--CommentsClose CommentsPermalink





(A) is redesignated as subparagraph (D), andCommentsClose CommentsPermalink





(B) is amended by striking `subparagraph (C)(ii)' and inserting `subparagraph (B)(ii)'.CommentsClose CommentsPermalink





(h) Amendments Related to Section 841-CommentsClose CommentsPermalink





(1) Section 420(c)(1)(A) of the 1986 Code is amended by adding at the end the following new sentence: `In the case of a qualified future transfer or collectively bargained transfer to which subsection (f) applies, any assets so transferred may also be used to pay liabilities described in subsection (f)(2)(C).'CommentsClose CommentsPermalink





(2) Section 420(f)(2) of the 1986 Code is amended by striking `such' before `the applicable' in subparagraph (D)(i)(I).CommentsClose CommentsPermalink





(3) Section 4980(c)(2)(B) of the 1986 Code is amended by striking `or' at the end of clause (i), by striking the period at the end of clause (ii) and inserting `, or', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(iii) any transfer described in section 420(f)(2)(B)(ii)(II).'.CommentsClose CommentsPermalink





(i) Amendments Related to Section 845-CommentsClose CommentsPermalink





(1) Subsection (l) of section 402 of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by inserting `maintained by the employer described in paragraph (4)(B)' after `an eligible retirement plan', andCommentsClose CommentsPermalink





(ii) by striking `of the employee, his spouse, or dependents (as defined in section 152)' in paragraph (1),CommentsClose CommentsPermalink





(B) in paragraph (4)(D), by--CommentsClose CommentsPermalink





(i) inserting `(as defined in section 152)' after `dependents', andCommentsClose CommentsPermalink





(ii) striking `health insurance plan' and inserting `health plan', andCommentsClose CommentsPermalink





(C) in paragraph (5)(A), by striking `health insurance plan' and inserting `health plan'.CommentsClose CommentsPermalink





(2) Subparagraph (B) of section 402(l)(3) of the 1986 Code is amended by striking `all amounts distributed from all eligible retirement plans were treated as 1 contract for purposes of determining the inclusion of such distribution under section 72' and inserting `all amounts to the credit of the eligible public safety officer in all eligible retirement plans maintained by the employer described in paragraph (4)(B) were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible'.CommentsClose CommentsPermalink





(j) Amendments Related to Section 854-CommentsClose CommentsPermalink





(1) Section 3121(b)(5)(E) of the 1986 Code is amended by striking `or special trial judge'.CommentsClose CommentsPermalink





(2) Section 210(a)(5)(E) of the Social Security Act is amended by striking `or special trial judge'.CommentsClose CommentsPermalink





(k) Amendments Related to Section 856- Section 856 of the 2006 Act, and the amendments made by such section, are hereby repealed, and the Internal Revenue Code of 1986 shall be applied and administered as if such sections and amendments had not been enacted.CommentsClose CommentsPermalink





(l) Amendment Related to Section 864- Section 864(a) of the 2006 Act is amended by striking `Reconciliation'.CommentsClose CommentsPermalink

SEC. 10. AMENDMENTS RELATED TO TITLE IX.

(a) Amendment Related to Section 901- Section 401(a)(35)(E)(iv) of the 1986 Code is amended to read as follows:CommentsClose CommentsPermalink





`(iv) ONE-PARTICIPANT RETIREMENT PLAN- For purposes of clause (iii), the term `one-participant retirement plan' means a retirement plan that on the first day of the plan year--CommentsClose CommentsPermalink





`(I) covered only one individual (or the individual and the individual's spouse) and the individual (or the individual and the individual's spouse) owned 100 percent of the plan sponsor (whether or not incorporated), orCommentsClose CommentsPermalink





`(II) covered only one or more partners (or partners and their spouses) in the plan sponsor.'.CommentsClose CommentsPermalink





(b) Amendments Related to Section 902-CommentsClose CommentsPermalink





(1) Section 401(k)(13)(D)(i)(I) of the 1986 Code is amended by striking `such compensation as exceeds 1 percent but does not' and inserting `such contributions as exceed 1 percent but do not'.CommentsClose CommentsPermalink





(2) Sections 401(k)(8)(E) and 411(a)(3)(G) of the 1986 Code are each amended--CommentsClose CommentsPermalink





(A) by striking `an erroneous automatic contribution' and inserting `a permissible withdrawal', andCommentsClose CommentsPermalink





(B) by striking `ERRONEOUS AUTOMATIC CONTRIBUTION' in the heading and inserting `PERMISSIBLE WITHDRAWAL'.CommentsClose CommentsPermalink





(3) Section 402(g)(2)(A)(ii) is amended by inserting `through the end of such of the 1986 Code is amended by inserting `through the end of such taxable year' after `such amount'.CommentsClose CommentsPermalink





(4) Section 414(w)(3) of the 1986 Code is amended--CommentsClose CommentsPermalink





(A) in subparagraph (B), by inserting `and' after the comma at the end,CommentsClose CommentsPermalink





(B) by striking subparagraph (C), andCommentsClose CommentsPermalink





(C) by redesignating subparagraph (D) as subparagraph (C).CommentsClose CommentsPermalink





(5) Section 414(w)(5) of the 1986 Code is amended by striking `and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting a comma, and by adding at the end the following:CommentsClose CommentsPermalink





`(D) a simplified employee pension the terms of which provide for a salary reduction arrangement described in section 408(k)(6), andCommentsClose CommentsPermalink





`(E) a simple retirement account (as defined in section 408(p)).'.CommentsClose CommentsPermalink





(6) Section 414(w)(6) of the 1986 Code is amended by inserting `or for purposes of applying the limitation under section 402(g)(1)' before the period at the end.CommentsClose CommentsPermalink





(c) Amendments Related to Section 903-CommentsClose CommentsPermalink





(1) AMENDMENT OF 1986 CODE- Section 414(x)(1) of the 1986 Code is amended by adding at the end of paragraph (1) the following new sentence: `In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.'CommentsClose CommentsPermalink





(2) AMENDMENTS OF ERISA- Section 210(e) of ERISA is amended--CommentsClose CommentsPermalink





(A) by adding at the end of paragraph (1) the following new sentence: `In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.', andCommentsClose CommentsPermalink





(B) by striking paragraph (3) and by redesignating paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), respectively.CommentsClose CommentsPermalink





(d) Amendment Related to Section 906-s Related to Section 906-CommentsClose CommentsPermalink





(1) Section 906(b)(1)(B)(ii) of the 2006 Act is amended by striking `paragraph (1)' and inserting `paragraph (10)'.CommentsClose CommentsPermalink





(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 inserting a period, and by striking paragraph (14).CommentsClose CommentsPermalink

SEC. 11. AMENDMENTS RELATED TO TITLE X.

(a) Amendments to Railroad Retirement Act-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





`(3)(i) Payments made pursuant to paragraph (2) of this subsection shall not require that the employee 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, payments made pursuant to paragraph (2) may not begin before the month in which the following three conditions are satisfied:CommentsClose CommentsPermalink





`(A) 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.CommentsClose CommentsPermalink





`(B) The spouse or former spouse attains age 62.CommentsClose CommentsPermalink





`(C) The employee attains age 62 (or if deceased, would have attained age 62).CommentsClose CommentsPermalink





`(ii) Payments made pursuant to paragraph (2) of this subsection shall terminate upon the death of the spouse or former spouse, unless the court document 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.CommentsClose CommentsPermalink





`(iii) If the employee is not entitled to an annuity 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.'.CommentsClose CommentsPermalink





(2) Subsection (d) of section 5 of the Railroad Retirement Act (45 U.S.C. 231d) is repealed.CommentsClose CommentsPermalink





(b) Effective Dates-CommentsClose CommentsPermalink





(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, payment 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 reinstated for months after August 2007.CommentsClose CommentsPermalink





(2) SUBSECTION (a)(2)- The amendment made by subsection (a)(2) shall take effect upon the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 12. AMENDMENTS RELATED TO TITLE XI.

(a) Amendment Related to Section 1104- Section 1104(d)(1) of the 2006 Act is amended by striking `Act' the first place it appears and inserting `section'.CommentsClose CommentsPermalink





(b) Amendments Related to Section 1105- Section 3304(a) of the 1986 Code is amended--CommentsClose CommentsPermalink





(1) in paragraph (15)--CommentsClose CommentsPermalink





(A) by redesignating clauses (i) and (ii) of subparagraph (A) as subclauses (I) and (II),CommentsClose CommentsPermalink





(B) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),CommentsClose CommentsPermalink





(C) by striking the semicolon at the end of clause (ii) (as so redesignated) and inserting `, and',CommentsClose CommentsPermalink





(D) by striking `(15)' and inserting `(15)(A) subject to subparagraph (B),', andCommentsClose CommentsPermalink





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





`(B) the amount of compensation shall not be reduced on account of any payments of governmental or other pensions, retirement or retired 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 distribution;', andCommentsClose CommentsPermalink





(2) by striking the last sentence.CommentsClose CommentsPermalink





(c) Amendments Related to Section 1106- Section 3(37)(G) of ERISA is amended by--CommentsClose CommentsPermalink





(1) striking `paragraph' each place it appears in clauses (ii), (iii), and (v)(I) and inserting `subparagraph',CommentsClose CommentsPermalink





(2) striking `subclause (i)(II)' in clause (iii) and inserting `clause (i)(II)',CommentsClose CommentsPermalink





(3) striking `subparagraph' in clause (v)(II) and inserting `clause', andCommentsClose CommentsPermalink





(4) by striking `section 101(b)(4)' in clause (v)(III) and inserting `section 101(b)(1)'.CommentsClose CommentsPermalink

SEC. 13. AMENDMENT RELATED TO TITLE XII.

Section 408(d)(8)(D) of the 1986 Code is amended by striking `all amounts distributed from all individual retirement plans were treated as 1 contract under paragraph (2)(A) for purposes of determining the inclusion of such distribution under section 72' and inserting `all amounts in all individual retirement plans of the individual were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible'.CommentsClose CommentsPermalink

SEC. 14. OTHER PROVISIONS.

SEC. 15. EFFECTIVE DATE.

Except as otherwise provided in this Act, the amendments made by this Act shall take effect as if included in the provisions of the 2006 Act to which the amendments relate.CommentsClose CommentsPermalink

Calendar No. 333 Passed the Senate December 19, 2007. CommentsClose CommentsPermalink

110th CONGRESS 1st Session S. 1974 A BILLN ACT

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

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August 3, 2007Read the second time and placed on the calendarCommentsClose CommentsPermalink