LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS MAINTAINED BY CHARITIES.

SEC. 204. LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS MAINTAINED BY CHARITIES.(a) Amendment to Erisa.—Paragraph (3) of section 303(f) of the Employee Retirement Income Security Act of 1974 is amended by adding the following at the end thereof:124 STAT. 1301 “(D) Special rule for certain years of plans maintained by charities.—“(i) In general.—For purposes of applying subparagraph (C) for plan years beginning after August 31, 2009, and before September 1, 2011, the ratio determined under such subparagraph for the preceding plan year shall be the greater of—“(I) such ratio, as determined without regard to this subparagraph, or“(II) the ratio for such plan for the plan year beginning after August 31, 2007, and before September 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, 2008, and before January 1, 2011, and“(II) clause (i)(II) shall apply based on the last plan year beginning before September 1, 2007, as determined under rules prescribed by the Secretary of the Treasury.“(iii) Limitation to charities.—This subparagraph shall not apply to any plan unless such plan is maintained exclusively by one or more organizations described in section 501(c)(3) of the Internal Revenue Code of 1986.”.(b) Amendment to Internal Revenue Code of 1986.—Paragraph (3) of section 430(f) of the Internal Revenue Code of 1986 is amended by adding the following at the end thereof:“(D) Special rule for certain years of plans maintained by charities.—“(i) In general.—For purposes of applying subparagraph (C) for plan years beginning after August 31, 2009, and before September 1, 2011, the ratio determined under such subparagraph for the preceding plan year of a plan shall be the greater of—“(I) such ratio, as determined without regard to this subsection, or“(II) the ratio for such plan for the plan year beginning after August 31, 2007 and before September 1, 2008, as determined under rules prescribed by the Secretary.“(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 September 1, 2007, as determined under rules prescribed by the Secretary.“(iii) Limitation to charities.—This subparagraph shall not apply to any plan unless such plan 124 STAT. 1302 is maintained exclusively by one or more organizations described in section 501(c)(3).”.(c) Effective Date.—(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after August 31, 2009.(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, 2008.