MODIFICATION OF TRANSITION RULE TO PENSION FUNDING REQUIREMENTS.

SEC. 115. MODIFICATION OF TRANSITION RULE TO PENSION FUNDING REQUIREMENTS.(a) In General.—In the case of a plan that—(1) was not required to pay a variable rate premium for the plan year beginning in 1996,(2) has not, in any plan year beginning after 1995, merged with another plan (other than a plan sponsored by an employer that was in 1996 within the controlled group of the plan sponsor), and(3) is sponsored by a company that is engaged primarily in the interurban or interstate passenger bus service,the rules described in subsection (b) shall apply for any plan year beginning after December 31, 2007.(b) Modified Rules.—The rules described in this subsection are as follows:(1) For purposes of section 430(j)(3) of the Internal Revenue Code of 1986 and section 303(j)(3) of the Employee Retirement Income Security Act of 1974, the plan shall be treated as not having a funding shortfall for any plan year.(2) For purposes of—120 STAT. 856(A) determining unfunded vested benefits under section 4006(a)(3)(E)(iii) of such Act, and(B) determining any present value or making any computation under section 412 of such Code or section 302 of such Act,the mortality table shall be the mortality table used by the plan.(3) Section 430(c)(5)(B) of such Code and section 303(c)(5)(B) of such Act (relating to phase-in of funding target for exemption from new shortfall amortization base) shall each be applied by substituting “2012” for “2011” therein and by substituting for the table therein the following: “In the case of a plan year beginning in calendar year: The applicable percentage is: 200890 percent 200992 percent 201094 percent 201196 percent. (c) Definitions.—Any term used in this section which is also used in section 430 of such Code or section 303 of such Act shall have the meaning provided such term in such section. If the same term has a different meaning in such Code and such Act, such term shall, for purposes of this section, have the meaning provided by such Code when applied with respect to such Code and the meaning provided by such Act when applied with respect to such Act.(d) Special Rule for 2006 and 2007.—(1) In general.—Section 769(c)(3) of the Retirement Protection Act of 1994, as added by section 201 of the Pension Funding Equity Act of 2004, is amended by striking “and 2005” and inserting “, 2005, 2006, and 2007”.(2) Effective date.—The amendment made by paragraph (1) shall apply to plan years beginning after December 31, 2005.(e) Conforming Amendment.—(1) Section 769 of the Retirement Protection Act of 1994 is amended by striking subsection (c).(2) The amendment made by paragraph (1) shall take effect on December 31, 2007, and shall apply to plan years beginning after such date.