PBGC PREMIUMS.

SEC. 401. PBGC PREMIUMS.(a) Variable-Rate Premiums.—(1) Conforming amendments related to funding rules for single-employer plans.—Section 4006(a)(3)(E) of the Employee Retirement Income and Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is amended by striking clauses (iii) and (iv) and inserting the following:“(iii) For purposes of clause (ii), the term ‘unfunded vested benefits’ means, for a plan year, the excess (if any) of—“(I) the funding target of the plan as determined under section 303(d) for the plan year by only taking into account vested benefits and by using the interest rate described in clause (iv), over“(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.“(iv) The interest rate used in valuing benefits for purposes of subclause (I) of clause (iii) shall be equal to the first, second, or third segment rate for the month preceding the month in which the plan year begins, which would be determined under section 303(h)(2)(C) if section 303(h)(2)(D) were applied by using the monthly yields for the month preceding the month in which the plan year begins on investment grade corporate bonds with varying maturities and in the top 3 quality levels rather than the average of such yields for a 24-month period.”.(2) Effective date.—The amendments made by paragraph (1) shall apply with respect to plan years beginning after 2007.(b) Termination Premiums.—(1) Repeal of sunset provision.—Subparagraph (E) of section 4006(a)(7) of such Act is repealed.(2) Technical correction.—(A) In general.—Section 4006(a)(7)(C)(ii) of such Act is amended by striking “subparagraph (B)(i)(I)” and inserting “subparagraph (B)”.(B) Effective date.—The amendment made by this paragraph shall take effect as if included in the provision of the Deficit Reduction Act of 2005 to which it relates.