Worker Health Benefits Protection Act of 1988

Worker Health Benefits Protection Act of 1988 - Title I: Federal Guarantee of Loans to Fund Certain Benefits - Directs the Secretary of the Treasury to guarantee principal and interest payments on corporate loans, to be paid over a period not to exceed 20 years, whose proceeds are transferred to a qualified retiree health trust. Requires that the terms of the loan direct that any tax benefits the corporation realizes from using net operating loss carryovers be placed in a separate account to pay loan principal.

Title II: Bankruptcy Situations - Requires that any tax benefits that any corporation that has filed for bankruptcy realizes from using net operating loss carryovers accrue to the benefit of the Pension Benefit Guaranty Corporation (PBGC), to the extent of the corporation's liability to the PBGC.

Title III: Treatment of Certain Pension Plan Reversions - Amends the Internal Revenue Code (IRC) to exclude from an employer's gross income any reversion from a qualified pension plan when more than half of it is transferred to a qualified retiree health trust. Exempts such amounts from the tax on reversions of qualified plan assets to the employer.

Describes requirements governing qualified retiree health trusts, created as part of a plan providing post-retirement medical benefits. Exempts such trusts from income taxation.

Increases from ten percent to 20 percent the excise tax on employer reversions from qualified plans.

Amends the IRC and the Employee Retirement Income Security Act of 1974 to set out conditions under which an employer may transfer or withdraw excess assets from a single employer defined benefit plan without triggering plan termination. Describes procedures to be followed in connection with such withdrawals, including required notice to employees and to the Secretary of the Treasury. Exempts qualifying withdrawals from the excise tax on prohibited transactions.

Title IV: Increase in Full-Funding Limitation - Increases the full-funding limitation from 150 percent to 200 percent of plan liability.

Title V: Effective Date - Sets forth the effective dates for the various provisions of this Act.