AMENDMENTS RELATED TO TITLE VII.

SEC. 107. AMENDMENTS RELATED TO TITLE VII.(a) Amendments to ERISA.—(1) Section 203(f)(1)(B) of ERISA is amended to read as follows:“(B) the requirements of section 204(c) or 205(g), or the requirements of subsection (e), with respect to accrued benefits derived from employer contributions,”.(2) Section 204(b)(5) of ERISA is amended—(A) by striking “clause” in subparagraph (A)(iii) and inserting “subparagraph”, and(B) by inserting “otherwise” before “allowable” in subparagraph (C).(3) Subclause (II) of section 204(b)(5)(B)(i) of ERISA is amended to read as follows:“(II) Preservation of capital.—An applicable defined benefit plan shall be treated as failing to meet the requirements of paragraph (1)(H) unless the plan provides that an interest credit (or equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account.”.(b) Amendments to 1986 Code.—(1) Section 411(b)(5) of the 1986 Code is amended—(A) by striking “clause” in subparagraph (A)(iii) and inserting “subparagraph”, and(B) by inserting “otherwise” before “allowable” in subparagraph (C).(2) Section 411(a)(13)(A) of the 1986 Code is amended—(A) by striking “paragraph (2)” in clause (i) and inserting “subparagraph (B)”,(B) by striking clause (ii) and inserting the following new clause:“(ii) the requirements of subsection (a)(11) or (c), or the requirements of section 417(e), with respect to accrued benefits derived from employer contributions,”, and(C) by striking “paragraph (3)” in the matter following clause (ii) and inserting “subparagraph (C)”.(3) Subclause (II) of section 411(b)(5)(B)(i) of the 1986 Code is amended to read as follows:“(II) Preservation of capital.—An applicable defined benefit plan shall be treated as failing to meet the requirements of paragraph (1)(H) unless the plan provides that an interest credit (or equivalent amount) of less than zero shall in no event result in the account balance or similar amount being less than the aggregate amount of contributions credited to the account.”.(c) Amendments to 2006 Act.—(1) Section 701(d)(2) of the 2006 Act is amended by striking “204(g)” and inserting “205(g)”.122 STAT. 5108(2) Section 701(e) of the 2006 Act is amended—(A) by inserting “on or” after “period” in paragraph (3),(B) in paragraph (4)—(i) by inserting “the earlier of” after “before” in the matter preceding subparagraph (A), and(ii) by striking “earlier” and inserting “later” in subparagraph (A),(C) by inserting “on or” before “after” each place it appears in paragraph (5), and(D) by adding at the end the following new paragraph:“(6) Special rule for vesting requirements.—The requirements of section 203(f)(2) of the Employee Retirement Income Security Act of 1974 and section 411(a)(13)(B) of the Internal Revenue Code of 1986 (as added by this Act)—“(A) shall not apply to a participant who does not have an hour of service after the effective date of such requirements (as otherwise determined under this subsection); and“(B) in the case of a plan other than a plan described in paragraph (3) or (4), shall apply to plan years ending on or after June 29, 2005.”.