TRANSITION RULE CLARIFICATION.

SEC. 202. TRANSITION RULE CLARIFICATION.(a) Amendment to ERISA.—Subparagraph (B) of section 303(c)(5) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(5)) is amended—(1) by striking clause (iii) and redesignating clause (iv) as clause (iii); and(2) by striking clause (i) and inserting the following:“(i) In general.—Except as provided in clause (iii), in the case of plan years beginning after 2007 122 STAT. 5118 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for purposes of paragraph (3)(A) and subparagraph (A).”.(b) Amendment to 1986 Code.—Subparagraph (B) of section 430(c)(5) of the Internal Revenue Code of 1986 is amended—(1) by striking clause (iii) and redesignating clause (iv) as clause (iii); and(2) by striking clause (i) and inserting the following:“(i) In general.—Except as provided in clause (iii), in the case of plan years beginning after 2007 and before 2011, only the applicable percentage of the funding target shall be taken into account under paragraph (3)(A) in determining the funding shortfall for purposes of paragraph (3)(A) and subparagraph (A).”.(c) Effective Date.—The amendments made by subsections (a) and (b) shall apply as if included in the enactment of sections 102 and 112, respectively, of the Pension Protection Act of 2006.