12 2 STA T .5 11 4PUBLIC LA W 11 0– 45 8—DE C.2 3, 2008 butno t i n exc e s so f t h e thi rd se gm ent r a tea p p l icable under sub - section ( h ) ( 2 )( C )(iii)) , as specified b y the S ecretary .’ ’. (c) EF F ECTIV E DA TE. —T he amendments made by this section shall ta k e effect as if included in the pro v isions of the 2 0 0 6A ct to w hich the amendments relate. SEC.12 2. MODIF IC AT IO N OF INTE R EST RATE ASS U M P TION RE Q UIRED W IT H RESPECT TO CERTAIN SMA L L EMPLO Y ER PLANS. (a) ING ENE R A L .—Subparagraph (E) of section 415 (b)(2) of the 1 98 6 Code (relating to limitation on certain assumptions) is amended by adding at the end the following new clause
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‘(vi) In the case of a plan maintained by an eligible employer (as defined in section 408(p)(2)(C)(i)), clause (ii) shall be applied without regard to subclause (II) thereof.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to years beginning after December 3 1, 2008. SEC. 12 3 . DETERMINATION OF MAR K ET RATE OF RETURN FOR G O V ERNMENTAL PLANS. (a) A M EN D MENT O F ADEA.—Section 4(i)(10)( B )(i)(III) of the Age Discrimination in Employment Act of 196 7 (29 U .S.C. 623(i)(10)(B)(i)(III)) is amended by adding at the end the following: ‘‘In the case of a governmental plan (as defined in the first sentence of section 414(d) of the Internal R evenue Code of 1986), a rate of return or a method of crediting interest established pursuant to any provision of F ederal, State, or local law (including any administrative rule or policy adopted in accordance with any such law) shall be treated as a market rate of return for purposes of subclause (I) and a permissible method of crediting interest for purposes of meeting the re q uirements of subclause (I), except that this sentence shall only apply to a rate of return or method of crediting interest if such rate or method does not violate any other requirement of this Act.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in the provisions of the P ension Protection Act of 2006 to which such amendment relates. SEC. 12 4 . TREATMENT OF CERTAIN REIM B URSEMENTS FROM GOVERN - MENTAL PLANS FOR MEDICAL CARE. (a) IN GENERAL.—Section 105 of the 1986 Code (relating to amounts received under accident and health plans) is amended by adding at the end the following new subsection: ‘‘( j )S P ECIAL R U LE FOR CERTAIN GOVERNMENTAL PLAN S .— ‘‘(1) IN G ENERAL.—For purposes of subsection (b), amounts paid (directly or indirectly) to the taxpayer from an accident or health plan described in paragraph (2) shall not fail to be excluded from gross income solely because such plan, on or before J anuary 1, 2008, provides for reimbursements of health care expenses of a deceased plan participant’s bene- ficiary. ‘‘(2) PLAN DESCRI B ED.—An accident or health plan is described in this paragraph if such plan is funded by a medical trust that is established in connection with a public retirement system and that— ‘‘(A) has been authori z ed by a State legislature, or 26USC105. 2 9 USC 62 3note . Ap p licab ilit y . 26 USC 4 15 note. Applicability. 26 USC 415. 26 USC 430 note.
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