LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

SEC. 203. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.(a) In General.—(1) Amendment to erisa.—Section 206(g)(9) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following:“(D) Special rule for certain years.—Solely for purposes of any applicable provision—“(i) In general.—For plan years beginning on or after October 1, 2008, and before October 1, 2010, the adjusted funding target attainment percentage of a plan shall be the greater of—“(I) such percentage, as determined without regard to this subparagraph, or“(II) the adjusted funding target attainment percentage for such plan for the plan year beginning after October 1, 2007, and before October 1, 2008, as determined under rules prescribed by the Secretary of the Treasury.“(ii) Special rule.—In the case of a plan for which the valuation date is not the first day of the plan year—“(I) clause (i) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, and“(II) clause (i)(II) shall apply based on the last plan year beginning before November 1, 2007, as determined under rules prescribed by the Secretary of the Treasury.“(iii) Applicable provision.—For purposes of this subparagraph, the term ‘applicable provision’ means—“(I) paragraph (3), but only for purposes of applying such paragraph to a payment which, as determined under rules prescribed by the Secretary of the Treasury, is a payment under a social security leveling option which accelerates payments under the plan before, and reduces payments after, a participant starts receiving social security benefits in order to provide substantially similar aggregate payments both before and after such benefits are received, and“(II) paragraph (4).”.124 STAT. 1300(2) Amendment to internal revenue code of 1986.—Section 436(j) of the Internal Revenue Code of 1986 is amended by adding at the end the following:“(3) Special rule for certain years.—Solely for purposes of any applicable provision—“(A) In general.—For plan years beginning on or after October 1, 2008, and before October 1, 2010, the adjusted funding target attainment percentage of a plan shall be the greater of—“(i) such percentage, as determined without regard to this paragraph, or“(ii) the adjusted funding target attainment percentage for such plan for the plan year beginning after October 1, 2007, and before October 1, 2008, as determined under rules prescribed by the Secretary.“(B) Special rule.—In the case of a plan for which the valuation date is not the first day of the plan year—“(i) subparagraph (A) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, and“(ii) subparagraph (A)(ii) shall apply based on the last plan year beginning before November 1, 2007, as determined under rules prescribed by the Secretary.“(C) Applicable provision.—For purposes of this paragraph, the term ‘applicable provision’ means—“(i) subsection (d), but only for purposes of applying such paragraph to a payment which, as determined under rules prescribed by the Secretary, is a payment under a social security leveling option which accelerates payments under the plan before, and reduces payments after, a participant starts receiving social security benefits in order to provide substantially similar aggregate payments both before and after such benefits are received, and“(ii) subsection (e).”.(b) Interaction With Wrera Rule.—Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 shall apply to a plan for any plan year in lieu of the amendments made by this section applying to sections 206(g)(4) of the Employee Retirement Income Security Act of 1974 and 436(e) of the Internal Revenue Code of 1986 only to the extent that such section produces a higher adjusted funding target attainment percentage for such plan for such year.(c) Effective Date.—(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning on or after October 1, 2008.(2) Special rule.—In the case of a plan for which the valuation date is not the first day of the plan year, the amendments made by this section shall apply to plan years beginning after December 31, 2007.