Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	348,220	n/a	n/a
Engrossed in House	353,828	277	3%
Placed on Calendar Senate	351,993	8	0%
Engrossed Amendment Senate	12,420	909	99%
Enrolled Bill	11,849	11 Show Changes Hide Changes	1%

Display Version Introduced in House Engrossed in House Placed on Calendar Senate Engrossed Amendment Senate Enrolled Bill

HR 3962 EAS

In the Senate of the United States,

June 18, 2010.

Resolved, That the bill from the House of Representatives (H.R.3962CommentsClose CommentsPermalink

) entitled ‘An Act One Hundred Eleventh Congress CommentsClose CommentsPermalink

CommentsClose CommentsPermalink

To provide a physician payment update, to provide affordable, quality health care for all Americans and reduce the growth in health care spendingpension funding relief, and for other purposes.CommentsClose CommentsPermalink

’, do pass with the following

AMENDMENTS:

Strike all after the enacting clause and insert the following:

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.CommentsClose CommentsPermalink

This Act may be cited as the ‘Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010’.CommentsClose CommentsPermalink

TITLE I--HEALTH PROVISIONSCommentsClose CommentsPermalink

SEC. 101. PHYSICIAN PAYMENT UPDATE.CommentsClose CommentsPermalink

(a) In General- Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (10), in the heading, by striking ‘PORTION’ and inserting ‘JANUARY THROUGH MAY ’; andCommentsClose CommentsPermalink





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





‘(11) UPDATE FOR JUNE THROUGH NOVEMBER OF 2010-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Subject to paragraphs (7)(B), (8)(B), (9)(B), and (10)(B), in lieu of the update to the single conversion factor established in paragraph (1)(C) that would otherwise apply for 2010 for the period beginning on June 1, 2010, and ending on November 30, 2010, the update to the single conversion factor shall be 2.2 percent.CommentsClose CommentsPermalink





‘(B) NO EFFECT ON COMPUTATION OF CONVERSION FACTOR FOR REMAINING PORTION OF 2010 AND SUBSEQUENT YEARS- The conversion factor under this subsection shall be computed under paragraph (1)(A) for the period beginning on December 1, 2010, and ending on December 31, 2010, and for 2011 and subsequent years as if subparagraph (A) had never applied.’.CommentsClose CommentsPermalink





(b) Statutory Paygo- The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, jointly submitted for printing in the Congressional Record by the Chairmen of the House and Senate Budget Committees, provided that such statement has been submitted prior to the vote on passage in the House acting first on this conference report or amendment between the Houses.CommentsClose CommentsPermalink

SEC. 102. CLARIFICATION OF 3-DAY PAYMENT WINDOW.CommentsClose CommentsPermalink

(a) In General- Section 1886 of the Social Security Act (42 U.S.C. 1395ww) is amended--CommentsClose CommentsPermalink





(1) by adding at the end of subsection (a)(4) the following new sentence: ‘In applying the first sentence of this paragraph, the term ‘other services related to the admission’ includes all services that are not diagnostic services (other than ambulance and maintenance renal dialysis services) for which payment may be made under this title that are provided by a hospital (or an entity wholly owned or operated by the hospital) to a patient--CommentsClose CommentsPermalink





‘(A) on the date of the patient’s inpatient admission; orCommentsClose CommentsPermalink





‘(B) during the 3 days (or, in the case of a hospital that is not a subsection (d) hospital, during the 1 day) immediately preceding the date of such admission unless the hospital demonstrates (in a form and manner, and at a time, specified by the Secretary) that such services are not related (as determined by the Secretary) to such admission.’; andCommentsClose CommentsPermalink





(2) in subsection (d)(7)--CommentsClose CommentsPermalink





(A) in subparagraph (A), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(B) in subparagraph (B), by striking the period and inserting ‘, and’; andCommentsClose CommentsPermalink





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





‘(C) the determination of whether services provided prior to a patient’s inpatient admission are related to the admission (as described in subsection (a)(4)).’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by subsection (a) shall apply to services furnished on or after the date of the enactment of this Act.CommentsClose CommentsPermalink





(c) No Reopening of Previously Bundled Claims-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Health and Human Services may not reopen a claim, adjust a claim, or make a payment pursuant to any request for payment under title XVIII of the Social Security Act, submitted by an entity (including a hospital or an entity wholly owned or operated by the hospital) for services described in paragraph (2) for purposes of treating, as unrelated to a patient’s inpatient admission, services provided during the 3 days (or, in the case of a hospital that is not a subsection (d) hospital, during the 1 day) immediately preceding the date of the patient’s inpatient admission.CommentsClose CommentsPermalink





(2) SERVICES DESCRIBED- For purposes of paragraph (1), the services described in this paragraph are other services related to the admission (as described in section 1886(a)(4) of the Social Security Act (42 U.S.C. 1395ww(a)(4)), as amended by subsection (a)) which were previously included on a claim or request for payment submitted under part A of title XVIII of such Act for which a reopening, adjustment, or request for payment under part B of such title, was not submitted prior to the date of the enactment of this Act.CommentsClose CommentsPermalink





(d) Implementation- Notwithstanding any other provision of law, the Secretary of Health and Human Services may implement the provisions of this section (and amendments made by this section) by program instruction or otherwise.CommentsClose CommentsPermalink





(e) Rule of Construction- Nothing in the amendments made by this section shall be construed as changing the policy described in section 1886(a)(4) of the Social Security Act (42 U.S.C. 1395ww(a)(4)), as applied by the Secretary of Health and Human Services before the date of the enactment of this Act, with respect to diagnostic services.CommentsClose CommentsPermalink

SEC. 103. ESTABLISH A CMS-IRS DATA MATCH TO IDENTIFY FRAUDULENT PROVIDERS.CommentsClose CommentsPermalink

(a) Authority To Disclose Return Information Concerning Outstanding Tax Debts for Purposes of Enhancing Medicare Program Integrity-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(22) DISCLOSURE OF RETURN INFORMATION TO DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR PURPOSES OF ENHANCING MEDICARE PROGRAM INTEGRITY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall, upon written request from the Secretary of Health and Human Services, disclose to officers and employees of the Department of Health and Human Services return information with respect to a taxpayer who has applied to enroll, or reenroll, as a provider of services or supplier under the Medicare program under title XVIII of the Social Security Act. Such return information shall be limited to--CommentsClose CommentsPermalink





‘(i) the taxpayer identity information with respect to such taxpayer;CommentsClose CommentsPermalink





‘(ii) the amount of the delinquent tax debt owed by that taxpayer; andCommentsClose CommentsPermalink





‘(iii) the taxable year to which the delinquent tax debt pertains.CommentsClose CommentsPermalink





‘(B) RESTRICTION ON DISCLOSURE- Return information disclosed under subparagraph (A) may be used by officers and employees of the Department of Health and Human Services for the purposes of, and to the extent necessary in, establishing the taxpayer’s eligibility for enrollment or reenrollment in the Medicare program, or in any administrative or judicial proceeding relating to, or arising from, a denial of such enrollment or reenrollment, or in determining the level of enhanced oversight to be applied with respect to such taxpayer pursuant to section 1866(j)(3) of the Social Security Act.CommentsClose CommentsPermalink





‘(C) DELINQUENT TAX DEBT- For purposes of this paragraph, the term ‘delinquent tax debt’ means an outstanding debt under this title for which a notice of lien has been filed pursuant to section 6323, but the term does not include a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or 7122, or a debt with respect to which a collection due process hearing under section 6330 is requested, pending, or completed and no payment is required.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Section 6103(p)(4) of such Code, as amended by sections 1414 and 3308 of Public Law 111-148, in the matter preceding subparagraph (A) and in subparagraph (F)(ii), is amended by striking ‘or (17)’ and inserting ‘(17), or (22)’ each place it appears.CommentsClose CommentsPermalink





(b) Secretary’s Authority To Use Information From the Department of Treasury in Medicare Enrollments and Reenrollments- Section 1866(j)(2) of the Social Security Act (42 U.S.C. 1395cc(j)), as inserted by section 6401(a) of Public Law 111-148, is further amended--CommentsClose CommentsPermalink





(1) by redesignating subparagraph (E) as subparagraph (F); andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (D) the following new subparagraph:CommentsClose CommentsPermalink





‘(E) USE OF INFORMATION FROM THE DEPARTMENT OF TREASURY CONCERNING TAX DEBTS- In reviewing the application of a provider of services or supplier to enroll or reenroll under the program under this title, the Secretary shall take into account the information supplied by the Secretary of the Treasury pursuant to section 6103(l)(22) of the Internal Revenue Code of 1986, in determining whether to deny such application or to apply enhanced oversight to such provider of services or supplier pursuant to paragraph (3) if the Secretary determines such provider of services or supplier owes such a debt.’.CommentsClose CommentsPermalink





(c) Authority To Adjust Payments of Providers of Services and Suppliers With the Same Tax Identification Number for Medicare Obligations- Section 1866(j)(6) of the Social Security Act (42 U.S.C. 1395cc(j)(6)), as inserted by section 6401(a) of Public Law 111-148 and as redesignated by section 1304 of Public Law 111-152, is amended--CommentsClose CommentsPermalink





(1) in the paragraph heading, by striking ‘PAST-DUE’ and inserting ‘MEDICARE’;CommentsClose CommentsPermalink





(2) in subparagraph (A), by striking ‘past-due obligations described in subparagraph (B)(ii) of an’ and inserting ‘amount described in subparagraph (B)(ii) due from such’; andCommentsClose CommentsPermalink





(3) in subparagraph (B)(ii), by striking ‘a past-due obligation’ and inserting ‘an amount that is more than the amount required to be paid’.CommentsClose CommentsPermalink

TITLE II--PENSION FUNDING RELIEFCommentsClose CommentsPermalink

Subtitle A--Single Employer PlansCommentsClose CommentsPermalink

SEC. 201. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT PLANS TO AMORTIZE CERTAIN SHORTFALL AMORTIZATION BASES.CommentsClose CommentsPermalink

(a) Amendments to ERISA-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 303(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end the following subparagraph:CommentsClose CommentsPermalink





‘(D) SPECIAL ELECTION FOR ELIGIBLE PLAN YEARS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- If a plan sponsor elects to apply this subparagraph with respect to the shortfall amortization base of a plan for any eligible plan year (in this subparagraph and paragraph (7) referred to as an ‘election year’), then, notwithstanding subparagraphs (A) and (B)--CommentsClose CommentsPermalink





‘(I) the shortfall amortization installments with respect to such base shall be determined under clause (ii) or (iii), whichever is specified in the election, andCommentsClose CommentsPermalink





‘(II) the shortfall amortization installment for any plan year in the 9-plan-year period described in clause (ii) or the 15-plan-year period described in clause (iii), respectively, with respect to such shortfall amortization base is the annual installment determined under the applicable clause for that year for that base.CommentsClose CommentsPermalink





‘(ii) 2 PLUS 7 AMORTIZATION SCHEDULE- The shortfall amortization installments determined under this clause are--CommentsClose CommentsPermalink





‘(I) in the case of the first 2 plan years in the 9-plan-year period beginning with the election year, interest on the shortfall amortization base of the plan for the election year (determined using the effective interest rate for the plan for the election year), andCommentsClose CommentsPermalink





‘(II) in the case of the last 7 plan years in such 9-plan-year period, the amounts necessary to amortize the remaining balance of the shortfall amortization base of the plan for the election year in level annual installments over such last 7 plan years (using the segment rates under subparagraph (C) for the election year).CommentsClose CommentsPermalink





‘(iii) 15-year AMORTIZATION- The shortfall amortization installments determined under this subparagraph are the amounts necessary to amortize the shortfall amortization base of the plan for the election year in level annual installments over the 15-plan-year period beginning with the election year (using the segment rates under subparagraph (C) for the election year).CommentsClose CommentsPermalink





‘(iv) ELECTION-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The plan sponsor of a plan may elect to have this subparagraph apply to not more than 2 eligible plan years with respect to the plan, except that in the case of a plan described in section 106 of the Pension Protection Act of 2006, the plan sponsor may only elect to have this subparagraph apply to a plan year beginning in 2011.CommentsClose CommentsPermalink





‘(II) AMORTIZATION SCHEDULE- Such election shall specify whether the amortization schedule under clause (ii) or (iii) shall apply to an election year, except that if a plan sponsor elects to have this subparagraph apply to 2 eligible plan years, the plan sponsor must elect the same schedule for both years.CommentsClose CommentsPermalink





‘(III) OTHER RULES- Such election shall be made at such time, and in such form and manner, as shall be prescribed by the Secretary of the Treasury, and may be revoked only with the consent of the Secretary of the Treasury. The Secretary of the Treasury shall, before granting a revocation request, provide the Pension Benefit Guaranty Corporation an opportunity to comment on the conditions applicable to the treatment of any portion of the election year shortfall amortization base that remains unamortized as of the revocation date.CommentsClose CommentsPermalink





‘(v) ELIGIBLE PLAN YEAR- For purposes of this subparagraph, the term ‘eligible plan year’ means any plan year beginning in 2008, 2009, 2010, or 2011, except that a plan year shall only be treated as an eligible plan year if the due date under subsection (j)(1) for the payment of the minimum required contribution for such plan year occurs on or after the date of the enactment of this subparagraph.CommentsClose CommentsPermalink





‘(vi) REPORTING- A plan sponsor of a plan who makes an election under clause (i) shall--CommentsClose CommentsPermalink





‘(I) give notice of the election to participants and beneficiaries of the plan, andCommentsClose CommentsPermalink





‘(II) inform the Pension Benefit Guaranty Corporation of such election in such form and manner as the Director of the Pension Benefit Guaranty Corporation may prescribe.CommentsClose CommentsPermalink





‘(vii) INCREASES IN REQUIRED INSTALLMENTS IN CERTAIN CASES- For increases in required contributions in cases of excess compensation or extraordinary dividends or stock redemptions, see paragraph (7).’.CommentsClose CommentsPermalink





(2) INCREASES IN REQUIRED INSTALLMENTS IN CERTAIN CASES- Section 303(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end the following paragraph:CommentsClose CommentsPermalink





‘(7) INCREASES IN ALTERNATE REQUIRED INSTALLMENTS IN CASES OF EXCESS COMPENSATION OR EXTRAORDINARY DIVIDENDS OR STOCK REDEMPTIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If there is an installment acceleration amount with respect to a plan for any plan year in the restriction period with respect to an election year under paragraph (2)(D), then the shortfall amortization installment otherwise determined and payable under such paragraph for such plan year shall, subject to the limitation under subparagraph (B), be increased by such amount.CommentsClose CommentsPermalink





‘(B) TOTAL INSTALLMENTS LIMITED TO SHORTFALL BASE- Subject to rules prescribed by the Secretary of the Treasury, if a shortfall amortization installment with respect to any shortfall amortization base for an election year is required to be increased for any plan year under subparagraph (A)--CommentsClose CommentsPermalink





‘(i) such increase shall not result in the amount of such installment exceeding the present value of such installment and all succeeding installments with respect to such base (determined without regard to such increase but after application of clause (ii)), andCommentsClose CommentsPermalink





‘(ii) subsequent shortfall amortization installments with respect to such base shall, in reverse order of the otherwise required installments, be reduced to the extent necessary to limit the present value of such subsequent shortfall amortization installments (after application of this paragraph) to the present value of the remaining unamortized shortfall amortization base.CommentsClose CommentsPermalink





‘(C) INSTALLMENT ACCELERATION AMOUNT- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘installment acceleration amount’ means, with respect to any plan year in a restriction period with respect to an election year, the sum of--CommentsClose CommentsPermalink





‘(I) the aggregate amount of excess employee compensation determined under subparagraph (D) with respect to all employees for the plan year, plusCommentsClose CommentsPermalink





‘(II) the aggregate amount of extraordinary dividends and redemptions determined under subparagraph (E) for the plan year.CommentsClose CommentsPermalink





‘(ii) ANNUAL LIMITATION- The installment acceleration amount for any plan year shall not exceed the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the sum of the shortfall amortization installments for the plan year and all preceding plan years in the amortization period elected under paragraph (2)(D) with respect to the shortfall amortization base with respect to an election year, determined without regard to paragraph (2)(D) and this paragraph, overCommentsClose CommentsPermalink





‘(II) the sum of the shortfall amortization installments for such plan year and all such preceding plan years, determined after application of paragraph (2)(D) (and in the case of any preceding plan year, after application of this paragraph).CommentsClose CommentsPermalink





‘(iii) CARRYOVER OF EXCESS INSTALLMENT ACCELERATION AMOUNTS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- If the installment acceleration amount for any plan year (determined without regard to clause (ii)) exceeds the limitation under clause (ii), then, subject to subclause (II), such excess shall be treated as an installment acceleration amount with respect to the succeeding plan year.CommentsClose CommentsPermalink





‘(II) CAP TO APPLY- If any amount treated as an installment acceleration amount under subclause (I) or this subclause with respect any succeeding plan year, when added to other installment acceleration amounts (determined without regard to clause (ii)) with respect to the plan year, exceeds the limitation under clause (ii), the portion of such amount representing such excess shall be treated as an installment acceleration amount with respect to the next succeeding plan year.CommentsClose CommentsPermalink





‘(III) LIMITATION ON YEARS TO WHICH AMOUNTS CARRIED FOR- No amount shall be carried under subclause (I) or (II) to a plan year which begins after the first plan year following the last plan year in the restriction period (or after the second plan year following such last plan year in the case of an election year with respect to which 15-year amortization was elected under paragraph (2)(D)).CommentsClose CommentsPermalink





‘(IV) ORDERING RULES- For purposes of applying subclause (II), installment acceleration amounts for the plan year (determined without regard to any carryover under this clause) shall be applied first against the limitation under clause (ii) and then carryovers to such plan year shall be applied against such limitation on a first-in, first-out basis.CommentsClose CommentsPermalink





‘(D) EXCESS EMPLOYEE COMPENSATION- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘excess employee compensation’ means, with respect to any employee for any plan year, the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the aggregate amount includible in income under chapter 1 of the Internal Revenue Code of 1986 for remuneration during the calendar year in which such plan year begins for services performed by the employee for the plan sponsor (whether or not performed during such calendar year), overCommentsClose CommentsPermalink





‘(II) $1,000,000.CommentsClose CommentsPermalink





‘(ii) AMOUNTS SET ASIDE FOR NONQUALIFIED DEFERRED COMPENSATION- If during any calendar year assets are set aside or reserved (directly or indirectly) in a trust (or other arrangement as determined by the Secretary of the Treasury), or transferred to such a trust or other arrangement, by a plan sponsor for purposes of paying deferred compensation of an employee under a nonqualified deferred compensation plan (as defined in section 409A of such Code) of the plan sponsor, then, for purposes of clause (i), the amount of such assets shall be treated as remuneration of the employee includible in income for the calendar year unless such amount is otherwise includible in income for such year. An amount to which the preceding sentence applies shall not be taken into account under this paragraph for any subsequent calendar year.CommentsClose CommentsPermalink





‘(iii) ONLY REMUNERATION FOR CERTAIN POST-2009 SERVICES COUNTED- Remuneration shall be taken into account under clause (i) only to the extent attributable to services performed by the employee for the plan sponsor after February 28, 2010.CommentsClose CommentsPermalink





‘(iv) EXCEPTION FOR CERTAIN EQUITY PAYMENTS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- There shall not be taken into account under clause (i)(I) any amount includible in income with respect to the granting after February 28, 2010, of service recipient stock (within the meaning of section 409A of the Internal Revenue Code of 1986) that, upon such grant, is subject to a substantial risk of forfeiture (as defined under section 83(c)(1) of such Code) for at least 5 years from the date of such grant.CommentsClose CommentsPermalink





‘(II) SECRETARIAL AUTHORITY- The Secretary of the Treasury may by regulation provide for the application of this clause in the case of a person other than a corporation.CommentsClose CommentsPermalink





‘(v) OTHER EXCEPTIONS- The following amounts includible in income shall not be taken into account under clause (i)(I):CommentsClose CommentsPermalink





‘(I) COMMISSIONS- Any remuneration payable on a commission basis solely on account of income directly generated by the individual performance of the individual to whom such remuneration is payable.CommentsClose CommentsPermalink





‘(II) CERTAIN PAYMENTS UNDER EXISTING CONTRACTS- Any remuneration consisting of nonqualified deferred compensation, restricted stock, stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid.CommentsClose CommentsPermalink





‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED AS EMPLOYEE- The term ‘employee’ includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) of such Code for the taxable year ending during such calendar year, and the term ‘compensation’ shall include earned income of such individual with respect to such self-employment.CommentsClose CommentsPermalink





‘(vii) INDEXING OF AMOUNT- In the case of any calendar year beginning after 2010, the dollar amount under clause (i)(II) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(I) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(II) the cost-of-living adjustment determined under section 1(f)(3) of such Code for the calendar year, determined by substituting ‘calendar year 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





If the amount of any increase under clause (i) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000.CommentsClose CommentsPermalink





‘(E) EXTRAORDINARY DIVIDENDS AND REDEMPTIONS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The amount determined under this subparagraph for any plan year is the excess (if any) of the sum of the dividends declared during the plan year by the plan sponsor plus the aggregate amount paid for the redemption of stock of the plan sponsor redeemed during the plan year over the greater of--CommentsClose CommentsPermalink





‘(I) the adjusted net income (within the meaning of section 4043) of the plan sponsor for the preceding plan year, determined without regard to any reduction by reason of interest, taxes, depreciation, or amortization, orCommentsClose CommentsPermalink





‘(II) in the case of a plan sponsor that determined and declared dividends in the same manner for at least 5 consecutive years immediately preceding such plan year, the aggregate amount of dividends determined and declared for such plan year using such manner.CommentsClose CommentsPermalink





‘(ii) ONLY CERTAIN POST-2009 DIVIDENDS AND REDEMPTIONS COUNTED- For purposes of clause (i), there shall only be taken into account dividends declared, and redemptions occurring, after February 28, 2010.CommentsClose CommentsPermalink





‘(iii) EXCEPTION FOR INTRA-GROUP DIVIDENDS- Dividends paid by one member of a controlled group (as defined in section 302(d)(3)) to another member of such group shall not be taken into account under clause (i).CommentsClose CommentsPermalink





‘(iv) EXCEPTION FOR CERTAIN REDEMPTIONS- Redemptions that are made pursuant to a plan maintained with respect to employees, or that are made on account of the death, disability, or termination of employment of an employee or shareholder, shall not be taken into account under clause (i).CommentsClose CommentsPermalink





‘(v) EXCEPTION FOR CERTAIN PREFERRED STOCK-CommentsClose CommentsPermalink





‘(I) IN GENERAL- Dividends and redemptions with respect to applicable preferred stock shall not be taken into account under clause (i) to the extent that dividends accrue with respect to such stock at a specified rate in all events and without regard to the plan sponsor’s income, and interest accrues on any unpaid dividends with respect to such stock.CommentsClose CommentsPermalink





‘(II) APPLICABLE PREFERRED STOCK- For purposes of subclause (I), the term ‘applicable preferred stock’ means preferred stock which was issued before March 1, 2010 (or which was issued after such date and is held by an employee benefit plan subject to the provisions of this title).CommentsClose CommentsPermalink





‘(F) OTHER DEFINITIONS AND RULES- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) PLAN SPONSOR- The term ‘ plan sponsor’ includes any member of the plan sponsor’s controlled group (as defined in section 302(d)(3)).CommentsClose CommentsPermalink





‘(ii) RESTRICTION PERIOD- The term ‘restriction period’ means, with respect to any election year--CommentsClose CommentsPermalink





‘(I) except as provided in subclause (II), the 3-year period beginning with the election year (or, if later, the first plan year beginning after December 31, 2009), andCommentsClose CommentsPermalink





‘(II) if the plan sponsor elects 15-year amortization for the shortfall amortization base for the election year, the 5-year period beginning with the election year (or, if later, the first plan year beginning after December 31, 2009).CommentsClose CommentsPermalink





‘(iii) ELECTIONS FOR MULTIPLE PLANS- If a plan sponsor makes elections under paragraph (2)(D) with respect to 2 or more plans, the Secretary of the Treasury shall provide rules for the application of this paragraph to such plans, including rules for the ratable allocation of any installment acceleration amount among such plans on the basis of each plan’s relative reduction in the plan’s shortfall amortization installment for the first plan year in the amortization period described in subparagraph (A) (determined without regard to this paragraph).CommentsClose CommentsPermalink





‘(iv) MERGERS AND ACQUISITIONS- The Secretary of the Treasury shall prescribe rules for the application of paragraph (2)(D) and this paragraph in any case where there is a merger or acquisition involving a plan sponsor making the election under paragraph (2)(D).’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS- Section 303 of such Act (29 U.S.C. 1083) is amended--CommentsClose CommentsPermalink





(A) in subsection (c)(1), by striking ‘the shortfall amortization bases for such plan year and each of the 6 preceding plan years’ and inserting ‘any shortfall amortization base which has not been fully amortized under this subsection’, andCommentsClose CommentsPermalink





(B) in subsection (j)(3), by adding at the end the following:CommentsClose CommentsPermalink





‘(F) QUARTERLY CONTRIBUTIONS NOT TO INCLUDE CERTAIN INCREASED CONTRIBUTIONS- Subparagraph (D) shall be applied without regard to any increase under subsection (c)(7).’.CommentsClose CommentsPermalink





(b) Amendments to Internal Revenue Code of 1986-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 430(c) is amended by adding at the end the following subparagraph:CommentsClose CommentsPermalink





‘(D) SPECIAL ELECTION FOR ELIGIBLE PLAN YEARS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- If a plan sponsor elects to apply this subparagraph with respect to the shortfall amortization base of a plan for any eligible plan year (in this subparagraph and paragraph (7) referred to as an ‘election year’), then, notwithstanding subparagraphs (A) and (B)--CommentsClose CommentsPermalink





‘(I) the shortfall amortization installments with respect to such base shall be determined under clause (ii) or (iii), whichever is specified in the election, andCommentsClose CommentsPermalink





‘(II) the shortfall amortization installment for any plan year in the 9-plan-year period described in clause (ii) or the 15-plan-year period described in clause (iii), respectively, with respect to such shortfall amortization base is the annual installment determined under the applicable clause for that year for that base.CommentsClose CommentsPermalink





‘(ii) 2 PLUS 7 AMORTIZATION SCHEDULE- The shortfall amortization installments determined under this clause are--CommentsClose CommentsPermalink





‘(I) in the case of the first 2 plan years in the 9-plan-year period beginning with the election year, interest on the shortfall amortization base of the plan for the election year (determined using the effective interest rate for the plan for the election year), andCommentsClose CommentsPermalink





‘(II) in the case of the last 7 plan years in such 9-plan-year period, the amounts necessary to amortize the remaining balance of the shortfall amortization base of the plan for the election year in level annual installments over such last 7 plan years (using the segment rates under subparagraph (C) for the election year).CommentsClose CommentsPermalink





‘(iii) 15-year AMORTIZATION- The shortfall amortization installments determined under this subparagraph are the amounts necessary to amortize the shortfall amortization base of the plan for the election year in level annual installments over the 15-plan-year period beginning with the election year (using the segment rates under subparagraph (C) for the election year).CommentsClose CommentsPermalink





‘(iv) ELECTION-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The plan sponsor of a plan may elect to have this subparagraph apply to not more than 2 eligible plan years with respect to the plan, except that in the case of a plan described in section 106 of the Pension Protection Act of 2006, the plan sponsor may only elect to have this subparagraph apply to a plan year beginning in 2011.CommentsClose CommentsPermalink





‘(II) AMORTIZATION SCHEDULE- Such election shall specify whether the amortization schedule under clause (ii) or (iii) shall apply to an election year, except that if a plan sponsor elects to have this subparagraph apply to 2 eligible plan years, the plan sponsor must elect the same schedule for both years.CommentsClose CommentsPermalink





‘(III) OTHER RULES- Such election shall be made at such time, and in such form and manner, as shall be prescribed by the Secretary, and may be revoked only with the consent of the Secretary. The Secretary shall, before granting a revocation request, provide the Pension Benefit Guaranty Corporation an opportunity to comment on the conditions applicable to the treatment of any portion of the election year shortfall amortization base that remains unamortized as of the revocation date.CommentsClose CommentsPermalink





‘(v) ELIGIBLE PLAN YEAR- For purposes of this subparagraph, the term ‘eligible plan year’ means any plan year beginning in 2008, 2009, 2010, or 2011, except that a plan year shall only be treated as an eligible plan year if the due date under subsection (j)(1) for the payment of the minimum required contribution for such plan year occurs on or after the date of the enactment of this subparagraph.CommentsClose CommentsPermalink





‘(vi) REPORTING- A plan sponsor of a plan who makes an election under clause (i) shall--CommentsClose CommentsPermalink





‘(I) give notice of the election to participants and beneficiaries of the plan, andCommentsClose CommentsPermalink





‘(II) inform the Pension Benefit Guaranty Corporation of such election in such form and manner as the Director of the Pension Benefit Guaranty Corporation may prescribe.CommentsClose CommentsPermalink





‘(vii) INCREASES IN REQUIRED INSTALLMENTS IN CERTAIN CASES- For increases in required contributions in cases of excess compensation or extraordinary dividends or stock redemptions, see paragraph (7).’.CommentsClose CommentsPermalink





(2) INCREASES IN REQUIRED CONTRIBUTIONS IF EXCESS COMPENSATION PAID- Section 430(c) is amended by adding at the end the following paragraph:CommentsClose CommentsPermalink





‘(7) INCREASES IN ALTERNATE REQUIRED INSTALLMENTS IN CASES OF EXCESS COMPENSATION OR EXTRAORDINARY DIVIDENDS OR STOCK REDEMPTIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If there is an installment acceleration amount with respect to a plan for any plan year in the restriction period with respect to an election year under paragraph (2)(D), then the shortfall amortization installment otherwise determined and payable under such paragraph for such plan year shall, subject to the limitation under subparagraph (B), be increased by such amount.CommentsClose CommentsPermalink





‘(B) TOTAL INSTALLMENTS LIMITED TO SHORTFALL BASE- Subject to rules prescribed by the Secretary, if a shortfall amortization installment with respect to any shortfall amortization base for an election year is required to be increased for any plan year under subparagraph (A)--CommentsClose CommentsPermalink





‘(i) such increase shall not result in the amount of such installment exceeding the present value of such installment and all succeeding installments with respect to such base (determined without regard to such increase but after application of clause (ii)), andCommentsClose CommentsPermalink





‘(ii) subsequent shortfall amortization installments with respect to such base shall, in reverse order of the otherwise required installments, be reduced to the extent necessary to limit the present value of such subsequent shortfall amortization installments (after application of this paragraph) to the present value of the remaining unamortized shortfall amortization base.CommentsClose CommentsPermalink





‘(C) INSTALLMENT ACCELERATION AMOUNT- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘installment acceleration amount’ means, with respect to any plan year in a restriction period with respect to an election year, the sum of--CommentsClose CommentsPermalink





‘(I) the aggregate amount of excess employee compensation determined under subparagraph (D) with respect to all employees for the plan year, plusCommentsClose CommentsPermalink





‘(II) the aggregate amount of extraordinary dividends and redemptions determined under subparagraph (E) for the plan year.CommentsClose CommentsPermalink





‘(ii) ANNUAL LIMITATION- The installment acceleration amount for any plan year shall not exceed the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the sum of the shortfall amortization installments for the plan year and all preceding plan years in the amortization period elected under paragraph (2)(D) with respect to the shortfall amortization base with respect to an election year, determined without regard to paragraph (2)(D) and this paragraph, overCommentsClose CommentsPermalink





‘(II) the sum of the shortfall amortization installments for such plan year and all such preceding plan years, determined after application of paragraph (2)(D) (and in the case of any preceding plan year, after application of this paragraph).CommentsClose CommentsPermalink





‘(iii) CARRYOVER OF EXCESS INSTALLMENT ACCELERATION AMOUNTS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- If the installment acceleration amount for any plan year (determined without regard to clause (ii)) exceeds the limitation under clause (ii), then, subject to subclause (II), such excess shall be treated as an installment acceleration amount with respect to the succeeding plan year.CommentsClose CommentsPermalink





‘(II) CAP TO APPLY- If any amount treated as an installment acceleration amount under subclause (I) or this subclause with respect any succeeding plan year, when added to other installment acceleration amounts (determined without regard to clause (ii)) with respect to the plan year, exceeds the limitation under clause (ii), the portion of such amount representing such excess shall be treated as an installment acceleration amount with respect to the next succeeding plan year.CommentsClose CommentsPermalink





‘(III) LIMITATION ON YEARS TO WHICH AMOUNTS CARRIED FOR- No amount shall be carried under subclause (I) or (II) to a plan year which begins after the first plan year following the last plan year in the restriction period (or after the second plan year following such last plan year in the case of an election year with respect to which 15-year amortization was elected under paragraph (2)(D)).CommentsClose CommentsPermalink





‘(IV) ORDERING RULES- For purposes of applying subclause (II), installment acceleration amounts for the plan year (determined without regard to any carryover under this clause) shall be applied first against the limitation under clause (ii) and then carryovers to such plan year shall be applied against such limitation on a first-in, first-out basis.CommentsClose CommentsPermalink





‘(D) EXCESS EMPLOYEE COMPENSATION- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘excess employee compensation’ means, with respect to any employee for any plan year, the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the aggregate amount includible in income under this chapter for remuneration during the calendar year in which such plan year begins for services performed by the employee for the plan sponsor (whether or not performed during such calendar year), overCommentsClose CommentsPermalink





‘(II) $1,000,000.CommentsClose CommentsPermalink





‘(ii) AMOUNTS SET ASIDE FOR NONQUALIFIED DEFERRED COMPENSATION- If during any calendar year assets are set aside or reserved (directly or indirectly) in a trust (or other arrangement as determined by the Secretary), or transferred to such a trust or other arrangement, by a plan sponsor for purposes of paying deferred compensation of an employee under a nonqualified deferred compensation plan (as defined in section 409A) of the plan sponsor, then, for purposes of clause (i), the amount of such assets shall be treated as remuneration of the employee includible in income for the calendar year unless such amount is otherwise includible in income for such year. An amount to which the preceding sentence applies shall not be taken into account under this paragraph for any subsequent calendar year.CommentsClose CommentsPermalink





‘(iii) ONLY REMUNERATION FOR CERTAIN POST-2009 SERVICES COUNTED- Remuneration shall be taken into account under clause (i) only to the extent attributable to services performed by the employee for the plan sponsor after February 28, 2010.CommentsClose CommentsPermalink





‘(iv) EXCEPTION FOR CERTAIN EQUITY PAYMENTS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- There shall not be taken into account under clause (i)(I) any amount includible in income with respect to the granting after February 28, 2010, of service recipient stock (within the meaning of section 409A) that, upon such grant, is subject to a substantial risk of forfeiture (as defined under section 83(c)(1)) for at least 5 years from the date of such grant.CommentsClose CommentsPermalink





‘(II) SECRETARIAL AUTHORITY- The Secretary may by regulation provide for the application of this clause in the case of a person other than a corporation.CommentsClose CommentsPermalink





‘(v) OTHER EXCEPTIONS- The following amounts includible in income shall not be taken into account under clause (i)(I):CommentsClose CommentsPermalink





‘(I) COMMISSIONS- Any remuneration payable on a commission basis solely on account of income directly generated by the individual performance of the individual to whom such remuneration is payable.CommentsClose CommentsPermalink





‘(II) CERTAIN PAYMENTS UNDER EXISTING CONTRACTS- Any remuneration consisting of nonqualified deferred compensation, restricted stock, stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid.CommentsClose CommentsPermalink





‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED AS EMPLOYEE- The term ‘employee’ includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) for the taxable year ending during such calendar year, and the term ‘compensation’ shall include earned income of such individual with respect to such self-employment.CommentsClose CommentsPermalink





‘(vii) INDEXING OF AMOUNT- In the case of any calendar year beginning after 2010, the dollar amount under clause (i)(II) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(I) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





If the amount of any increase under clause (i) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000.CommentsClose CommentsPermalink





‘(E) EXTRAORDINARY DIVIDENDS AND REDEMPTIONS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The amount determined under this subparagraph for any plan year is the excess (if any) of the sum of the dividends declared during the plan year by the plan sponsor plus the aggregate amount paid for the redemption of stock of the plan sponsor redeemed during the plan year over the greater of--CommentsClose CommentsPermalink





‘(I) the adjusted net income (within the meaning of section 4043 of the Employee Retirement Income Security Act of 1974) of the plan sponsor for the preceding plan year, determined without regard to any reduction by reason of interest, taxes, depreciation, or amortization, orCommentsClose CommentsPermalink





‘(II) in the case of a plan sponsor that determined and declared dividends in the same manner for at least 5 consecutive years immediately preceding such plan year, the aggregate amount of dividends determined and declared for such plan year using such manner.CommentsClose CommentsPermalink





‘(ii) ONLY CERTAIN POST-2009 DIVIDENDS AND REDEMPTIONS COUNTED- For purposes of clause (i), there shall only be taken into account dividends declared, and redemptions occurring, after February 28, 2010.CommentsClose CommentsPermalink





‘(iii) EXCEPTION FOR INTRA-GROUP DIVIDENDS- Dividends paid by one member of a controlled group (as defined in section 412(d)(3)) to another member of such group shall not be taken into account under clause (i).CommentsClose CommentsPermalink





‘(iv) EXCEPTION FOR CERTAIN REDEMPTIONS- Redemptions that are made pursuant to a plan maintained with respect to employees, or that are made on account of the death, disability, or termination of employment of an employee or shareholder, shall not be taken into account under clause (i).CommentsClose CommentsPermalink





‘(v) EXCEPTION FOR CERTAIN PREFERRED STOCK-CommentsClose CommentsPermalink





‘(I) IN GENERAL- Dividends and redemptions with respect to applicable preferred stock shall not be taken into account under clause (i) to the extent that dividends accrue with respect to such stock at a specified rate in all events and without regard to the plan sponsor’s income, and interest accrues on any unpaid dividends with respect to such stock.CommentsClose CommentsPermalink





‘(II) APPLICABLE PREFERRED STOCK- For purposes of subclause (I), the term ‘applicable preferred stock’ means preferred stock which was issued before March 1, 2010 (or which was issued after such date and is held by an employee benefit plan subject to the provisions of title I of Employee Retirement Income Security Act of 1974).CommentsClose CommentsPermalink





‘(F) OTHER DEFINITIONS AND RULES- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) PLAN SPONSOR- The term ‘ plan sponsor’ includes any member of the plan sponsor’s controlled group (as defined in section 412(d)(3)).CommentsClose CommentsPermalink





‘(ii) RESTRICTION PERIOD- The term ‘restriction period’ means, with respect to any election year--CommentsClose CommentsPermalink





‘(I) except as provided in subclause (II), the 3-year period beginning with the election year (or, if later, the first plan year beginning after December 31, 2009), andCommentsClose CommentsPermalink





‘(II) if the plan sponsor elects 15-year amortization for the shortfall amortization base for the election year, the 5-year period beginning with the election year (or, if later, the first plan year beginning after December 31, 2009).CommentsClose CommentsPermalink





‘(iii) ELECTIONS FOR MULTIPLE PLANS- If a plan sponsor makes elections under paragraph (2)(D) with respect to 2 or more plans, the Secretary shall provide rules for the application of this paragraph to such plans, including rules for the ratable allocation of any installment acceleration amount among such plans on the basis of each plan’s relative reduction in the plan’s shortfall amortization installment for the first plan year in the amortization period described in subparagraph (A) (determined without regard to this paragraph).CommentsClose CommentsPermalink





‘(iv) MERGERS AND ACQUISITIONS- The Secretary shall prescribe rules for the application of paragraph (2)(D) and this paragraph in any case where there is a merger or acquisition involving a plan sponsor making the election under paragraph (2)(D).’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS- Section 430 is amended--CommentsClose CommentsPermalink





(A) in subsection (c)(1), by striking ‘the shortfall amortization bases for such plan year and each of the 6 preceding plan years’ and inserting ‘any shortfall amortization base which has not been fully amortized under this subsection’, andCommentsClose CommentsPermalink





(B) in subsection (j)(3), by adding at the end the following:CommentsClose CommentsPermalink





‘(F) QUARTERLY CONTRIBUTIONS NOT TO INCLUDE CERTAIN INCREASED CONTRIBUTIONS- Subparagraph (D) shall be applied without regard to any increase under subsection (c)(7).’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to plan years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 202. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO PLANS SUBJECT TO PRIOR LAW FUNDING RULES.CommentsClose CommentsPermalink

(a) In General- Title I of the Pension Protection Act of 2006 is amended by redesignating section 107 as section 108 and by inserting the following after section 106:CommentsClose CommentsPermalink

‘SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO PLANS WITH DELAYED EFFECTIVE DATE.CommentsClose CommentsPermalink

‘(a) In General- If the plan sponsor of a plan to which section 104, 105, or 106 of this Act applies elects to have this section apply for any eligible plan year (in this section referred to as an ‘election year’), section 302 of the Employee Retirement Income Security Act of 1974 and section 412 of the Internal Revenue Code of 1986 (as in effect before the amendments made by this subtitle and subtitle B) shall apply to such year in the manner described in subsection (b) or (c), whichever is specified in the election. All references in this section to ‘such Act’ or ‘such Code’ shall be to such Act or such Code as in effect before the amendments made by this subtitle and subtitle B.CommentsClose CommentsPermalink





‘(b) Application of 2 and 7 Rule- In the case of an election year to which this subsection applies--CommentsClose CommentsPermalink





‘(1) 2-year LOOKBACK FOR DETERMINING DEFICIT REDUCTION CONTRIBUTIONS FOR CERTAIN PLANS- For purposes of applying section 302(d)(9) of such Act and section 412(l)(9) of such Code, the funded current liability percentage (as defined in subparagraph (C) thereof) for such plan for such plan year shall be such funded current liability percentage of such plan for the second plan year preceding the first election year of such plan.CommentsClose CommentsPermalink





‘(2) CALCULATION OF DEFICIT REDUCTION CONTRIBUTION- For purposes of applying section 302(d) of such Act and section 412(l) of such Code to a plan to which such sections apply (after taking into account paragraph (1))--CommentsClose CommentsPermalink





‘(A) in the case of the increased unfunded new liability of the plan, the applicable percentage described in section 302(d)(4)(C) of such Act and section 412(l)(4)(C) of such Code shall be the third segment rate described in sections 104(b), 105(b), and 106(b) of this Act, andCommentsClose CommentsPermalink





‘(B) in the case of the excess of the unfunded new liability over the increased unfunded new liability, such applicable percentage shall be determined without regard to this section.CommentsClose CommentsPermalink





‘(c) Application of 15-year Amortization- In the case of an election year to which this subsection applies, for purposes of applying section 302(d) of such Act and section 412(l) of such Code--CommentsClose CommentsPermalink





‘(1) in the case of the increased unfunded new liability of the plan, the applicable percentage described in section 302(d)(4)(C) of such Act and section 412(l)(4)(C) of such Code for any pre-effective date plan year beginning with or after the first election year shall be the ratio of--CommentsClose CommentsPermalink





‘(A) the annual installments payable in each year if the increased unfunded new liability for such plan year were amortized over 15 years, using an interest rate equal to the third segment rate described in sections 104(b), 105(b), and 106(b) of this Act, toCommentsClose CommentsPermalink





‘(B) the increased unfunded new liability for such plan year, andCommentsClose CommentsPermalink





‘(2) in the case of the excess of the unfunded new liability over the increased unfunded new liability, such applicable percentage shall be determined without regard to this section.CommentsClose CommentsPermalink





‘(d) Election-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The plan sponsor of a plan may elect to have this section apply to not more than 2 eligible plan years with respect to the plan, except that in the case of a plan to which section 106 of this Act applies, the plan sponsor may only elect to have this section apply to 1 eligible plan year.CommentsClose CommentsPermalink





‘(2) AMORTIZATION SCHEDULE- Such election shall specify whether the rules under subsection (b) or (c) shall apply to an election year, except that if a plan sponsor elects to have this section apply to 2 eligible plan years, the plan sponsor must elect the same rule for both years.CommentsClose CommentsPermalink





‘(3) OTHER RULES- Such election shall be made at such time, and in such form and manner, as shall be prescribed by the Secretary of the Treasury, and may be revoked only with the consent of the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(e) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) ELIGIBLE PLAN YEAR- For purposes of this subparagraph, the term ‘eligible plan year’ means any plan year beginning in 2008, 2009, 2010, or 2011, except that a plan year beginning in 2008 shall only be treated as an eligible plan year if the due date for the payment of the minimum required contribution for such plan year occurs on or after the date of the enactment of this clause.CommentsClose CommentsPermalink





‘(2) PRE-EFFECTIVE DATE PLAN YEAR- The term ‘pre-effective date plan year’ means, with respect to a plan, any plan year prior to the first year in which the amendments made by this subtitle and subtitle B apply to the plan.CommentsClose CommentsPermalink





‘(3) INCREASED UNFUNDED NEW LIABILITY- The term ‘increased unfunded new liability’ means, with respect to a year, the excess (if any) of the unfunded new liability over the amount of unfunded new liability determined as if the value of the plan’s assets determined under subsection 302(c)(2) of such Act and section 412(c)(2) of such Code equaled the product of the current liability of the plan for the year multiplied by the funded current liability percentage (as defined in section 302(d)(8)(B) of such Act and 412(l)(8)(B) of such Code) of the plan for the second plan year preceding the first election year of such plan.CommentsClose CommentsPermalink





‘(4) OTHER DEFINITIONS- The terms ‘unfunded new liability’ and ‘current liability’ shall have the meanings set forth in section 302(d) of such Act and section 412(l) of such Code.’.CommentsClose CommentsPermalink





(b) Eligible Charity Plans- Section 104 of the Pension Protection Act of 2006 is amended--CommentsClose CommentsPermalink





(1) by striking ‘eligible cooperative plan’ wherever it appears in subsections (a) and (b) and inserting ‘eligible cooperative plan or an eligible charity plan’, andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Eligible Charity Plan Defined- For purposes of this section, a plan shall be treated as an eligible charity plan for a plan year if the plan is maintained by more than one employer (determined without regard to section 414(c) of the Internal Revenue Code) and 100 percent of the employers are described in section 501(c)(3) of such Code.’.CommentsClose CommentsPermalink





(c) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendment made by subsection (a) shall take effect as if included in the Pension Protection Act of 2006.CommentsClose CommentsPermalink





(2) ELIGIBLE CHARITY PLAN- The amendments made by subsection (b) shall apply to plan years beginning after December 31, 2007, except that a plan sponsor may elect to apply such amendments to plan years beginning after December 31, 2008. Any such election shall be made at such time, and in such form and manner, as shall be prescribed by the Secretary of the Treasury, and may be revoked only with the consent of the Secretary of the Treasury.CommentsClose CommentsPermalink

SEC. 203. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.CommentsClose CommentsPermalink

(a) In General-CommentsClose CommentsPermalink





(1) AMENDMENT TO ERISA- Section 206(g)(9) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(D) SPECIAL RULE FOR CERTAIN YEARS- Solely for purposes of any applicable provision--CommentsClose CommentsPermalink





‘(i) IN GENERAL- For plan years beginning on or after October 1, 2008, and before October 1, 2010, the adjusted funding target attainment percentage of a plan shall be the greater of--CommentsClose CommentsPermalink





‘(I) such percentage, as determined without regard to this subparagraph, orCommentsClose CommentsPermalink





‘(II) the adjusted funding target attainment percentage for such plan for the plan year beginning after October 1, 2007, and before October 1, 2008, as determined under rules prescribed by the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(ii) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year--CommentsClose CommentsPermalink





‘(I) clause (i) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, andCommentsClose CommentsPermalink





‘(II) clause (i)(II) shall apply based on the last plan year beginning before November 1, 2007, as determined under rules prescribed by the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(iii) APPLICABLE PROVISION- For purposes of this subparagraph, the term ‘applicable provision’ means--CommentsClose CommentsPermalink





‘(I) paragraph (3), but only for purposes of applying such paragraph to a payment which, as determined under rules prescribed by the Secretary of the Treasury, is a payment under a social security leveling option which accelerates payments under the plan before, and reduces payments after, a participant starts receiving social security benefits in order to provide substantially similar aggregate payments both before and after such benefits are received, andCommentsClose CommentsPermalink





‘(II) paragraph (4).’.CommentsClose CommentsPermalink





(2) AMENDMENT TO INTERNAL REVENUE CODE OF 1986- Section 436(j) of the Internal Revenue Code of 1986 is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(3) SPECIAL RULE FOR CERTAIN YEARS- Solely for purposes of any applicable provision--CommentsClose CommentsPermalink





‘(A) IN GENERAL- For plan years beginning on or after October 1, 2008, and before October 1, 2010, the adjusted funding target attainment percentage of a plan shall be the greater of--CommentsClose CommentsPermalink





‘(i) such percentage, as determined without regard to this paragraph, orCommentsClose CommentsPermalink





‘(ii) the adjusted funding target attainment percentage for such plan for the plan year beginning after October 1, 2007, and before October 1, 2008, as determined under rules prescribed by the Secretary.CommentsClose CommentsPermalink





‘(B) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year--CommentsClose CommentsPermalink





‘(i) subparagraph (A) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, andCommentsClose CommentsPermalink





‘(ii) subparagraph (A)(ii) shall apply based on the last plan year beginning before November 1, 2007, as determined under rules prescribed by the Secretary.CommentsClose CommentsPermalink





‘(C) APPLICABLE PROVISION- For purposes of this paragraph, the term ‘applicable provision’ means--CommentsClose CommentsPermalink





‘(i) subsection (d), but only for purposes of applying such paragraph to a payment which, as determined under rules prescribed by the Secretary, is a payment under a social security leveling option which accelerates payments under the plan before, and reduces payments after, a participant starts receiving social security benefits in order to provide substantially similar aggregate payments both before and after such benefits are received, andCommentsClose CommentsPermalink





‘(ii) subsection (e).’.CommentsClose CommentsPermalink





(b) Interaction With Wrera Rule- Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 shall apply to a plan for any plan year in lieu of the amendments made by this section applying to sections 206(g)(4) of the Employee Retirement Income Security Act of 1974 and 436(e) of the Internal Revenue Code of 1986 only to the extent that such section produces a higher adjusted funding target attainment percentage for such plan for such year.CommentsClose CommentsPermalink





(c) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning on or after October 1, 2008.CommentsClose CommentsPermalink





(2) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year, the amendments made by this section shall apply to plan years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 204. LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS MAINTAINED BY CHARITIES.CommentsClose CommentsPermalink

(a) Amendment to Erisa- Paragraph (3) of section 303(f) of the Employee Retirement Income Security Act of 1974 is amended by adding the following at the end thereof:CommentsClose CommentsPermalink





‘(D) SPECIAL RULE FOR CERTAIN YEARS OF PLANS MAINTAINED BY CHARITIES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of applying subparagraph (C) for plan years beginning after August 31, 2009, and before September 1, 2011, the ratio determined under such subparagraph for the preceding plan year shall be the greater of--CommentsClose CommentsPermalink





‘(I) such ratio, as determined without regard to this subparagraph, orCommentsClose CommentsPermalink





‘(II) the ratio for such plan for the plan year beginning after August 31, 2007, and before September 1, 2008, as determined under rules prescribed by the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(ii) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year--CommentsClose CommentsPermalink





‘(I) clause (i) shall apply to plan years beginning after December 31, 2008, and before January 1, 2011, andCommentsClose CommentsPermalink





‘(II) clause (i)(II) shall apply based on the last plan year beginning before September 1, 2007, as determined under rules prescribed by the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(iii) LIMITATION TO CHARITIES- This subparagraph shall not apply to any plan unless such plan is maintained exclusively by one or more organizations described in section 501(c)(3) of the Internal Revenue Code of 1986.’.CommentsClose CommentsPermalink





(b) Amendment to Internal Revenue Code of 1986- Paragraph (3) of section 430(f) of the Internal Revenue Code of 1986 is amended by adding the following at the end thereof:CommentsClose CommentsPermalink





‘(D) SPECIAL RULE FOR CERTAIN YEARS OF PLANS MAINTAINED BY CHARITIES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of applying subparagraph (C) for plan years beginning after August 31, 2009, and before September 1, 2011, the ratio determined under such subparagraph for the preceding plan year of a plan shall be the greater of--CommentsClose CommentsPermalink





‘(I) such ratio, as determined without regard to this subsection, orCommentsClose CommentsPermalink





‘(II) the ratio for such plan for the plan year beginning after August 31, 2007 and before September 1, 2008, as determined under rules prescribed by the Secretary.CommentsClose CommentsPermalink





‘(ii) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year--CommentsClose CommentsPermalink





‘(I) clause (i) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, andCommentsClose CommentsPermalink





‘(II) clause (i)(II) shall apply based on the last plan year beginning before September 1, 2007, as determined under rules prescribed by the Secretary.CommentsClose CommentsPermalink





‘(iii) LIMITATION TO CHARITIES- This subparagraph shall not apply to any plan unless such plan is maintained exclusively by one or more organizations described in section 501(c)(3).’.CommentsClose CommentsPermalink





(c) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after August 31, 2009.CommentsClose CommentsPermalink





(2) SPECIAL RULE- In the case of a plan for which the valuation date is not the first day of the plan year, the amendments made by this section shall apply to plan years beginning after December 31, 2008.CommentsClose CommentsPermalink

Subtitle B--Multiemployer PlansCommentsClose CommentsPermalink

SEC. 211. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.CommentsClose CommentsPermalink

(a) Adjustments-CommentsClose CommentsPermalink





(1) AMENDMENT TO ERISA- Section 304(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(8) SPECIAL RELIEF RULES- Notwithstanding any other provision of this subsection--CommentsClose CommentsPermalink





‘(A) AMORTIZATION OF NET INVESTMENT LOSSES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A multiemployer plan with respect to which the solvency test under subparagraph (C) is met may treat the portion of any experience loss or gain attributable to net investment losses incurred in either or both of the first two plan years ending after August 31, 2008, as an item separate from other experience losses, to be amortized in equal annual installments (until fully amortized) over the period --CommentsClose CommentsPermalink





‘(I) beginning with the plan year in which such portion is first recognized in the actuarial value of assets, andCommentsClose CommentsPermalink





‘(II) ending with the last plan year in the 30-plan year period beginning with the plan year in which such net investment loss was incurred.CommentsClose CommentsPermalink





‘(ii) COORDINATION WITH EXTENSIONS- If this subparagraph applies for any plan year--CommentsClose CommentsPermalink





‘(I) no extension of the amortization period under clause (i) shall be allowed under subsection (d), andCommentsClose CommentsPermalink





‘(II) if an extension was granted under subsection (d) for any plan year before the election to have this subparagraph apply to the plan year, such extension shall not result in such amortization period exceeding 30 years.CommentsClose CommentsPermalink





‘(iii) NET INVESTMENT LOSSES- For purposes of this subparagraph--CommentsClose CommentsPermalink





‘(I) IN GENERAL- Net investment losses shall be determined in the manner prescribed by the Secretary of the Treasury on the basis of the difference between actual and expected returns (including any difference attributable to any criminally fraudulent investment arrangement).CommentsClose CommentsPermalink





‘(II) CRIMINALLY FRAUDULENT INVESTMENT ARRANGEMENTS- The determination as to whether an arrangement is a criminally fraudulent investment arrangement shall be made under rules substantially similar to the rules prescribed by the Secretary of the Treasury for purposes of section 165 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





‘(B) EXPANDED SMOOTHING PERIOD-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A multiemployer plan with respect to which the solvency test under subparagraph (C) is met may change its asset valuation method in a manner which--CommentsClose CommentsPermalink





‘(I) spreads the difference between expected and actual returns for either or both of the first 2 plan years ending after August 31, 2008, over a period of not more than 10 years,CommentsClose CommentsPermalink





‘(II) provides that for either or both of the first 2 plan years beginning after August 31, 2008, the value of plan assets at any time shall not be less than 80 percent or greater than 130 percent of the fair market value of such assets at such time, orCommentsClose CommentsPermalink





‘(III) makes both changes described in subclauses (I) and (II) to such method.CommentsClose CommentsPermalink





‘(ii) ASSET VALUATION METHODS- If this subparagraph applies for any plan year--CommentsClose CommentsPermalink





‘(I) the Secretary of the Treasury shall not treat the asset valuation method of the plan as unreasonable solely because of the changes in such method described in clause (i), andCommentsClose CommentsPermalink





‘(II) such changes shall be deemed approved by such Secretary under section 302(d)(1) and section 412(d)(1) of such Code.CommentsClose CommentsPermalink





‘(iii) AMORTIZATION OF REDUCTION IN UNFUNDED ACCRUED LIABILITY- If this subparagraph and subparagraph (A) both apply for any plan year, the plan shall treat any reduction in unfunded accrued liability resulting from the application of this subparagraph as a separate experience amortization base, to be amortized in equal annual installments (until fully amortized) over a period of 30 plan years rather than the period such liability would otherwise be amortized over.CommentsClose CommentsPermalink





‘(C) SOLVENCY TEST- The solvency test under this paragraph is met only if the plan actuary certifies that the plan is projected to have sufficient assets to timely pay expected benefits and anticipated expenditures over the amortization period, taking into account the changes in the funding standard account under this paragraph.CommentsClose CommentsPermalink





‘(D) RESTRICTION ON BENEFIT INCREASES- If subparagraph (A) or (B) apply to a multiemployer plan for any plan year, then, in addition to any other applicable restrictions on benefit increases, a plan amendment increasing benefits may not go into effect during either of the 2 plan years immediately following such plan year unless--CommentsClose CommentsPermalink





‘(i) the plan actuary certifies that--CommentsClose CommentsPermalink





‘(I) any such increase is paid for out of additional contributions not allocated to the plan immediately before the application of this paragraph to the plan, andCommentsClose CommentsPermalink





‘(II) the plan’s funded percentage and projected credit balances for such 2 plan years are reasonably expected to be at least as high as such percentage and balances would have been if the benefit increase had not been adopted, orCommentsClose CommentsPermalink





‘(ii) the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 or to comply with other applicable law.CommentsClose CommentsPermalink





‘(E) REPORTING- A plan sponsor of a plan to which this paragraph applies shall--CommentsClose CommentsPermalink





‘(i) give notice of such application to participants and beneficiaries of the plan, andCommentsClose CommentsPermalink





‘(ii) inform the Pension Benefit Guaranty Corporation of such application in such form and manner as the Director of the Pension Benefit Guaranty Corporation may prescribe.’.CommentsClose CommentsPermalink





(2) AMENDMENT TO INTERNAL REVENUE CODE OF 1986- Section 431(b) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(8) SPECIAL RELIEF RULES- Notwithstanding any other provision of this subsection--CommentsClose CommentsPermalink





‘(A) AMORTIZATION OF NET INVESTMENT LOSSES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A multiemployer plan with respect to which the solvency test under subparagraph (C) is met may treat the portion of any experience loss or gain attributable to net investment losses incurred in either or both of the first two plan years ending after August 31, 2008, as an item separate from other experience losses, to be amortized in equal annual installments (until fully amortized) over the period --CommentsClose CommentsPermalink





‘(I) beginning with the plan year in which such portion is first recognized in the actuarial value of assets, andCommentsClose CommentsPermalink





‘(II) ending with the last plan year in the 30-plan year period beginning with the plan year in which such net investment loss was incurred.CommentsClose CommentsPermalink





‘(ii) COORDINATION WITH EXTENSIONS- If this subparagraph applies for any plan year--CommentsClose CommentsPermalink





‘(I) no extension of the amortization period under clause (i) shall be allowed under subsection (d), andCommentsClose CommentsPermalink





‘(II) if an extension was granted under subsection (d) for any plan year before the election to have this subparagraph apply to the plan year, such extension shall not result in such amortization period exceeding 30 years.CommentsClose CommentsPermalink





‘(iii) NET INVESTMENT LOSSES- For purposes of this subparagraph--CommentsClose CommentsPermalink





‘(I) IN GENERAL- Net investment losses shall be determined in the manner prescribed by the Secretary on the basis of the difference between actual and expected returns (including any difference attributable to any criminally fraudulent investment arrangement).CommentsClose CommentsPermalink





‘(II) CRIMINALLY FRAUDULENT INVESTMENT ARRANGEMENTS- The determination as to whether an arrangement is a criminally fraudulent investment arrangement shall be made under rules substantially similar to the rules prescribed by the Secretary for purposes of section 165.CommentsClose CommentsPermalink





‘(B) EXPANDED SMOOTHING PERIOD-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A multiemployer plan with respect to which the solvency test under subparagraph (C) is met may change its asset valuation method in a manner which--CommentsClose CommentsPermalink





‘(I) spreads the difference between expected and actual returns for either or both of the first 2 plan years ending after August 31, 2008, over a period of not more than 10 years,CommentsClose CommentsPermalink





‘(II) provides that for either or both of the first 2 plan years beginning after August 31, 2008, the value of plan assets at any time shall not be less than 80 percent or greater than 130 percent of the fair market value of such assets at such time, orCommentsClose CommentsPermalink





‘(III) makes both changes described in subclauses (I) and (II) to such method.CommentsClose CommentsPermalink





‘(ii) ASSET VALUATION METHODS- If this subparagraph applies for any plan year--CommentsClose CommentsPermalink





‘(I) the Secretary shall not treat the asset valuation method of the plan as unreasonable solely because of the changes in such method described in clause (i), andCommentsClose CommentsPermalink





‘(II) such changes shall be deemed approved by the Secretary under section 302(d)(1) of the Employee Retirement Income Security Act of 1974 and section 412(d)(1).CommentsClose CommentsPermalink





‘(iii) AMORTIZATION OF REDUCTION IN UNFUNDED ACCRUED LIABILITY- If this subparagraph and subparagraph (A) both apply for any plan year, the plan shall treat any reduction in unfunded accrued liability resulting from the application of this subparagraph as a separate experience amortization base, to be amortized in equal annual installments (until fully amortized) over a period of 30 plan years rather than the period such liability would otherwise be amortized over.CommentsClose CommentsPermalink





‘(C) SOLVENCY TEST- The solvency test under this paragraph is met only if the plan actuary certifies that the plan is projected to have sufficient assets to timely pay expected benefits and anticipated expenditures over the amortization period, taking into account the changes in the funding standard account under this paragraph.CommentsClose CommentsPermalink





‘(D) RESTRICTION ON BENEFIT INCREASES- If subparagraph (A) or (B) apply to a multiemployer plan for any plan year, then, in addition to any other applicable restrictions on benefit increases, a plan amendment increasing benefits may not go into effect during either of the 2 plan years immediately following such plan year unless--CommentsClose CommentsPermalink





‘(i) the plan actuary certifies that--CommentsClose CommentsPermalink





‘(I) any such increase is paid for out of additional contributions not allocated to the plan immediately before the application of this paragraph to the plan, andCommentsClose CommentsPermalink





‘(II) the plan’s funded percentage and projected credit balances for such 2 plan years are reasonably expected to be at least as high as such percentage and balances would have been if the benefit increase had not been adopted, orCommentsClose CommentsPermalink





‘(ii) the amendment is required as a condition of qualification under part I of subchapter D or to comply with other applicable law.CommentsClose CommentsPermalink





‘(E) REPORTING- A plan sponsor of a plan to which this paragraph applies shall--CommentsClose CommentsPermalink





‘(i) give notice of such application to participants and beneficiaries of the plan, andCommentsClose CommentsPermalink





‘(ii) inform the Pension Benefit Guaranty Corporation of such application in such form and manner as the Director of the Pension Benefit Guaranty Corporation may prescribe.’.CommentsClose CommentsPermalink





(b) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall take effect as of the first day of the first plan year ending after August 31, 2008, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after August 31, 2008, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 and section 432 of the Internal Revenue Code of 1986 to such plan year.CommentsClose CommentsPermalink





(2) RESTRICTIONS ON BENEFIT INCREASES- Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D) of such Code, as added by this section, shall take effect on the date of enactment of this Act.CommentsClose CommentsPermalink

TITLE III--BUDGETARY PROVISIONSCommentsClose CommentsPermalink

SEC. 301. BUDGETARY PROVISIONS.CommentsClose CommentsPermalink

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.CommentsClose CommentsPermalink

Amend the title so as to read: ‘An Act to provide a physician payment update, to provide pension funding relief, and for other purposes.’.

Attest:

Secretary.

111th CONGRESS

2d Session

H.R. 3962

AMENDMENTS

Speaker of the House of Representatives. CommentsClose CommentsPermalink