MODIFICATION OF MINIMUM COST REQUIREMENT FOR TRANSFER OF EXCESS PENSION ASSETS.

SEC. 709. MODIFICATION OF MINIMUM COST REQUIREMENT FOR TRANSFER OF EXCESS PENSION ASSETS.(a) Amendments of ERISA.—(1) Section 101(e)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by striking “Pension Funding Equity Act of 2004” and inserting “American Jobs Creation Act of 2004”.(2) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is amended by striking “Pension Funding Equity Act of 2004” and inserting “American Jobs Creation Act of 2004”.(3) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(3)) is amended by striking “Pension Funding Equity Act of 2004” and inserting “American Jobs Creation Act of 2004”.(b) Minimum Cost Requirements.—(1) In general.—Section 420(c)(3)(E) is amended by adding at the end the following new clause:“(ii) Insignificant cost reductions permitted.—“(I) In general.—An eligible employer shall not be treated as failing to meet the requirements of this paragraph for any taxable year if, in lieu of any reduction of retiree health coverage permitted under the regulations prescribed under clause (i), the employer reduces applicable employer cost by an amount not in excess of the reduction in costs which would have occurred if the employer had made the maximum permissible reduction in retiree health coverage under such regulations. In applying such regulations to any subsequent taxable year, any reduction in applicable employer cost under this clause shall 118 STAT. 1552 be treated as if it were an equivalent reduction in retiree health coverage.“(II) Eligible employer.—For purposes of subclause (I), an employer shall be treated as an eligible employer for any taxable year if, for the preceding taxable year, the qualified current retiree health liabilities of the employer were at least 5 percent of the gross receipts of the employer. For purposes of this subclause, the rules of paragraphs (2), (3)(B), and (3)(C) of section 448(c) shall apply in determining the amount of an employer’s gross receipts.”.(2) Conforming amendment.—Section 420(c)(3)(E) is amended by striking “The Secretary” and inserting:“(i) In general.—The Secretary”.(3) Effective date.—The amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.