,i #aacth ,,congress #ast ,session ,h4 ,r4 #baag ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjac ,mr4 ,neal introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,education and the ,workforce1 ,armed ,services1 ,oversight and ,government ,reform1 and ,transportation and ,infrastructure1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to simplify and enhance qualified retirement plans1 and for other purposes4 #a4 ,short title2 reference2 table of contents 7a7 ,short title ,this ,act may be cited as the ,retirement ,plan ,simplification and ,enhancement ,act of #bjac4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 reference2 table of contents4 ,title ,i--,expanding ,coverage and ,increasing ,retirement ,savings ,sec4 #aja4 ,modification of automatic enrollment safe harbor4 ,sec4 #ajb4 ,secure deferral arrangements4 ,sec4 #ajc4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate4 ,sec4 #ajd4 ,separate application of top heavy rules to defined contribution plans covering part-time employees4 ,sec4 #aje4 ,modification of saver's credit4 ,sec4 #ajf4 ,retirement handbook and retirement readiness checklist4 ,sec4 #ajg4 ,additional time to adopt a qualified plan4 ,title ,,ii--,encouraging ,small ,businesses to ,enter and ,remain in the ,employer ,retirement ,plan ,system ,sec4 #bja4 ,increase in credit limitation for small employer pension plan startup costs4 ,sec4 #bjb4 ,eliminating barriers to use of multiple employer plans4 ,title ,,iii--,preservation of ,income ,sec4 #cja4 ,study of application of spousal consent rules to defined contribution plans4 ,sec4 #cjb4 ,administration of joint and survivor annuity requirements4 ,sec4 #cjc4 ,availability of distribution options4 ,sec4 #cjd4 ,rollover of insurance contracts to ,i,r,as4 ,sec4 #cje4 ,portability of lifetime income options4 ,sec4 #cjf4 ,lost ,pension ,plan ,registry4 ,title ,,iv--,simplification and ,clarification of ,qualified ,retirement ,plan ,rules ,sec4 #dja4 ,exception from required distributions where aggregate retirement savings do not exceed #ajj1jjj4 ,sec4 #djb4 ,expansion of ,employee ,plans ,compliance ,resolution ,system4 ,sec4 #djc4 ,use of forfeitures to fund safe harbor contributions4 ,sec4 #djd4 ,substantial cessation of operations4 ,sec4 #dje4 ,church plan clarification4 ,sec4 #djf4 ,protecting older1 longer service participants4 ,sec4 #djg4 ,review and report to the ,congress relating to reporting and disclosure requirements4 ,sec4 #djh4 ,consolidation of defined contribution plan notices4 ,sec4 #dji4 ,performance benchmarks for asset allocation funds4 ,sec4 #daj4 ,permit nonspousal beneficiaries to roll assets to plans4 ,sec4 #daa4 ,eliminate the 8first day of the month0 requirement4 ,title ,v--,provisions ensuring equity in divorce ,sec4 #eja4 ,special rules relating to treatment of qualified domestic relations orders4 ,sec4 #ejb4 ,elimination of current connection requirement under ,railroad ,retirement ,act for certain survivors4 ,sec4 #ejc4 ,permitting divorced spouses and widows and widowers to remarry after turning #fj without a penalty under ,railroad ,retirement ,act4 ,sec4 #ejd4 ,repeal of jurisdictional requirement for court to treat military retirement pay as property of the military member and spouse4 ,sec4 #eje4 ,modification of reductions in disposable retired pay for payments in compliance with court orders4 ,sec4 #ejf4 ,survivor annuities for widows1 widowers1 and former spouses of federal employees who die before attaining age for deferred annuity under civil service retirement system4 ,sec4 #ejg4 ,court orders relating to ,federal retirement benefits for former spouses of federal employees4 ,title ,,vi--,office of ,participant and ,plan ,sponsor ,advocate ,sec4 #fja4 ,office of ,participant and ,plan ,sponsor ,advocate4 ,i ,expanding ,coverage and ,increasing ,retirement ,savings #aja4 ,modification of automatic enrollment safe harbor 7a7 ,in general 7#a7 ,removal of #aj percent cap ,clause 7iii7 of section #dja7k77#ac77;,c7 is amended by striking 1 does not exceed #aj percent1 and is at least and inserting and is4 7#b7 ,conforming amendments 7,a7 ,subclause 7,i7 of section #dja7k77#ac77;,c77iii7 is amended by striking #c percent and inserting at least #c percent1 but not greater than #aj percent14 7,b7 ,subclause 7,,ii7 of section #dja7k77#ac77;,c77iii7 is amended by striking #d percent and inserting at least #d percent4 7,c7 ,subclause 7,,iii7 of section #dja7k77#ac77;,c77iii7 is amended by striking #e percent and inserting at least #e percent4 7,d7 ,subclause 7,,iv7 of section #dja7k77#ac77;,c77iii7 is amended by striking #f percent and inserting at least #f percent4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after the date of enactment of this ,act4 #ajb4 ,secure deferral arrangements 7a7 ,in general ,subsection 7k7 of section #dja of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ad7 ,alternative method for secure deferral arrangements to meet nondiscrimination requirements 7,a7 ,in general ,a secure deferral arrangement shall be treated as meeting the requirements of paragraph 7#c77;,a77ii74 7,b7 ,secure deferral arrangement ,for purposes of this paragraph1 the term secure deferral arrangement means any cash or deferred arrangement which meets the requirements of subparagraphs 7,c71 7,d71 and 7,e7 of paragraph 7#ac71 except as modified by this paragraph4 7,c7 ,qualified percentage ,for purposes of this paragraph1 with respect to any employee1 the term qualified percentage means1 in lieu of the meaning given such term in paragraph 7#ac77;,c77iii71 any percentage determined under the arrangement if such percentage is applied uniformly and is-- 7i7 at least #f percent1 but not greater than #aj percent1 during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in paragraph 7#ac77;,c77i7 is made with respect to such employee1 7ii7 at least #h percent during the first plan year following the plan year described in clause 7i71 and 7iii7 at least #aj percent during any subsequent plan year4 7,d7 ,matching contributions 7i7 ,in general ,for purposes of this paragraph1 an arrangement shall be treated as having met the requirements of paragraph 7#ac77;,d77i7 if and only if the employer makes matching contributions on behalf of each employee who is not a highly compensated employee in an amount equal to the sum of #ej percent of the elective contributions of the employee to the extent that such contributions do not exceed #b percent of compensation plus #cj percent of so much of such contributions as exceed #b percent but do not exceed #aj percent of compensation4 7ii7 ,application of rules for matching contributions ,the rules of clause 7ii7 of paragraph 7#ab77;,b7 and clauses 7iii7 and 7iv7 of paragraph 7#ac77;,d7 shall apply for purposes of clause 7i7 but the rule of clause 7iii7 of paragraph 7#ab77;,b7 shall not apply for such purposes4 ,the rate of matching contribution for each incremental deferral must be at least as high as the rate specified in clause 7i71 and may be higher1 so long as such rate does not increase as an employee's rate of elective contributions increases4 4 7b7 ,matching contributions and employee contributions ,subsection 7m7 of section #dja of such ,code is amended by redesignating paragraph 7#ac7 as paragraph 7#ad7 and by adding after paragraph 7#ab7 the following new paragraph3 7#ac7 ,alternative method for secure deferral arraignments ,a defined contribution plan shall be treated as meeting the requirements of paragraph 7#b7 with respect to matching contributions and employee contributions if the plan-- 7,a7 is a secure deferral arrangement 7as defined in subsection 7k77#ad771 7,b7 meets the requirements of clauses 7ii7 and 7iii7 of paragraph 7#aa77;,b71 and 7,c7 provides that matching contributions on behalf of any employee may not be made with respect to an employee's contributions or elective deferrals in excess of #aj percent of the employee's compensation4 4 7c7 ,tax credit 7#a7 ,in general ,subpart 7,d7 of part ,,iv of subchapter ,a of ,chapter #a of subtitle ,a of such ,code is amended by adding at the end thereof the following new section3 #de,s4 ,secure deferral arrangements 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible employer maintaining a qualified employer plan 7as defined in clauses 7i7 and 7ii7 of section #digb7;d77#a77;,a771 the secure deferral arrangement credit determined under this section for any taxable year is an amount equal to #aj percent of all contributions under a secure deferral arrangement 7as defined in section #dja7k77#ad77 made during the plan year ending with or within the taxable year of the eligible employer by or on behalf of employees other than highly compensated employees 7as defined in section #dad7q774 7b7 ,dollar limitation ,the amount of the credit determined under this section for any taxable year shall not exceed-- 7#a7 #aj1jjj for the first credit year and each of the #b taxable years immediately following the first credit year1 and 7#b7 zero for any other taxable year4 7c7 ,first credit year ,the term first credit year means-- 7#a7 the taxable year of the eligible employer with which or within which ends the first plan year during which the secure deferral arrangement was in effect for the entire year1 or 7#b7 at the election of the eligible employer1 the taxable year preceding the taxable year referred to in paragraph 7#a74 7d7 ,definition and special rules 7#a7 ,eligible employer ,the term eligible employer has the meaning given such term by section #djh7p77#b77;,c77i74 7#b7 ,aggregation ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one person4 ,all qualified employer plans of an eligible employer shall be treated as #a qualified employer plan4 7#c7 ,disallowance of deduction ,no deduction shall be allowed for that portion of the contribution for the taxable year which is equal to the credit determined under subsection 7a74 7#d7 ,election not to claim credit ,this section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year4 ,any such taxable year shall not be taken into account under subsection 7b74 4 7#b7 ,conforming amendments 7,a7 ,general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following3 7#cg7 the secure deferral arrangement credit determined under section #de,s4 4 7,b7 ,credit cross-references 7i7 ,subsection 7k7 of section #dja of such ,code1 as amended by subsection 7a71 is amended at the end thereof to add the following new paragraph3 7#ae7 ,secure deferral arrangement credit ,for a general business credit with respect to secure deferral arrangements1 see section #de,s4 4 7ii7 ,subsection 7m7 of section #dja of such ,code1 as amended by subsection 7b71 is amended by adding at the end the following new paragraph3 7#ae7 ,secure deferral arrangement credit ,for a general business credit with respect to secure deferral arrangements1 see section #de,s4 4 7d7 ,facilitating qualified automatic contribution arrangements and secure deferral arraignments ,by no later than the date that is twelve months after the date of enactment of this ,act1 the ,secretary of the ,treasury shall prescribe rules that facilitate the administration of qualified automatic contribution arrangements 7as defined in section #dja7k77#ac7 of the ,internal ,revenue ,code of #aihf7 and secure deferral arrangements 7as defined in section #dja7k77#ad7 of such ,code74 ,such rules shall-- 7#a7 ,clarify1 simplify1 and provide safe harbors with respect to the application of the notice requirements described in section #dja7k77#ac77;,e7 of such ,code1 especially in cases where-- 7,a7 employees become eligible under such arrangements upon becoming employed or shortly thereafter1 or 7,b7 the employer has employees subject to different payroll and administrative systems4 7#b7 ,clarify1 simplify and provide safe harbors with respect to the timing of the increases in the qualified percentage described in subclauses 7,,ii71 7,,iii71 and 7,,iv7 of section #dja7k77#ac77;,c77iii7 of such ,code and in clauses 7ii7 and 7iii7 of section #dja7k77#ad77;,c7 of such ,code1 especially in cases where the employer has employees subject to different payroll and administrative systems4 7e7 ,effective date 7#a7 ,in general ,the amendments made by subsections 7a7 and 7b7 shall apply to plan years beginning after ,december #ca1 #bjac4 7#b7 ,tax credit ,the amendments made by subsection 7c7 shall apply to taxable years beginning after ,december #ca1 #bjac4 #ajc4 ,qualified cash or deferred arrangements must allow long-term employees working more than #ejj but less than #a1jjj hours per year to participate 7a7 ,participation requirement 7#a7 ,in general ,subparagraph 7,d7 of section #dja7k77#b7 7defining qualified cash or deferred arrangement7 is amended to read as follows3 7,d7 which does not require1 as a condition of participation in the arrangement1 that an employee complete a period of service with the employer 7or employers7 maintaining the plan extending beyond the close of the earlier of-- 7i7 the period permitted under section #daj7;a77#a7 7determined without regard to subparagraph 7,b77i7 thereof71 or 7ii7 subject to the provisions of paragraph 7#ad71 the first period of #c consecutive #ab-month periods during each of which the employee has at least #ejj hours of service4 4 7#b7 ,special rules ,section #dja7k7 7relating to cash or deferred arrangements7 7as amended by section #ajb7 is amended by adding at the end the following new paragraph3 7#af7 ,special rules for participation requirement for long-term1 part-time workers ,for purposes of paragraph 7#b77;,d77ii7-- 7,a7 ,age requirement must be met ,paragraph 7#b77;,d77ii7 shall not apply to an employee unless the employee has met the requirement of section #daj7;a77#a77;,a77i7 by the close of the last of the #ab-month periods described in such paragraph4 7,b7 ,nondiscrimination and top-heavy rules not to apply 7i7 ,nondiscrimination rules ,in the case of employees who are eligible to participate in the arrangement solely by reason of paragraph 7#b77;,d77ii7-- 7,i7 notwithstanding subsection 7a77#d71 an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement1 and 7,,ii7 an employer may elect to exclude such employees from the application of subsection 7a77#d71 paragraph 7#c71 subsection 7m77#b71 and section #daj7;b74 7ii7 ,top-heavy rules ,an employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph 7#b77;,d77ii7 from the application of the vesting and benefit requirements under subsections 7b7 and 7c7 of section #daf4 7iii7 ,vesting ,for purposes of determining whether an employee described in clause 7i7 has a nonforfeitable right to employer contributions 7other than contributions described in paragraph 7#c77;,d77i77 under the arrangement1 each #ab-month period for which the employee has at least #ejj hours of service shall be treated as a year of service4 7iv7 ,employees who become full-time employees ,this subparagraph shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section #daj7;a77#a77;,a77ii7 without regard to paragraph 7#b77;,d77ii74 7,c7 ,exception for employees under collectively bargained plans1 etc ,paragraph 7#b77;,d77ii7 shall not apply to employees described in section #daj7;b77#c74 7,d7 ,special rules 7i7 ,time of participation ,the rules of section #daj7;a77#d7 shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph 7#b77;,d77ii74 7ii7 #ab-month periods #ab-month periods shall be determined in the same manner as under the last sentence of section #daj7;a77#c77;,a74 4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac1 except that1 for purposes of section #dja7k77#b77;,d77ii7 of the ,internal ,revenue ,code of #aihf 7as added by such amendments71 #ab-month periods beginning before ,january #a1 #bjad1 shall not be taken into account4 #ajd4 ,separate application of top heavy rules to defined contribution plans covering part-time employees 7a7 ,in general ,paragraph 7#b7 of section #daf7;c7 is amended by adding at the end the following3 7,c7 ,separate application to employees not meeting age and service requirements ,if employees not meeting the age or service requirements of section #daj7;a77#a7 7without regard to subparagraph 7,b7 thereof7 are covered under a plan of the employer which meets the requirements of paragraphs 7,a7 and 7,b7 separately with respect to such employees1 such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs 7,a7 and 7,b74 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to plan years beginning after the date of the enactment of this ,act4 #aje4 ,modification of saver's credit 7a7 #ej percent credit for all taxpayers3 expansion of phaseout ranges ,subsection 7b7 of section #be;,b is amended to read as follows3 7b7 ,applicable percentage ,for purposes of this section-- 7#a7 ,in general ,except as provided in paragraph 7#b71 the applicable percentage is #ej percent4 7#b7 ,phaseout ,the percentage under paragraph 7#a7 shall be reduced 7but not below zero7 by the number of percentage points which bears the same ratio to #ej percentage points as-- 7,a7 the excess of-- 7i7 the taxpayer's adjusted gross income for such taxable year1 over 7ii7 the applicable dollar amount1 bears to 7,b7 the phaseout range4 ,if any reduction determined under this paragraph is not a whole percentage point1 such reduction shall be rounded to the nearest whole percentage point4 7#c7 ,applicable dollar amount2 phaseout range 7,a7 ,joint returns ,except as provided in subparagraph 7,b7-- 7i7 the applicable dollar amount is #fe1jjj1 and 7ii7 the phaseout range is #bj1jjj4 7,b7 ,other returns ,in the case of-- 7i7 a head of a household 7as defined in section #b7;b771 the applicable dollar amount and the phaseout range shall be #c_/d of the amounts applicable under subparagraph 7,a7 7as adjusted under paragraph 7#d771 and 7ii7 any taxpayer who is not filing a joint return and who is not a head of a household 7as so defined71 the applicable dollar amount and the phaseout range shall be #a_/b of the amounts applicable under subparagraph 7,a7 7as so adjusted74 7#d7 ,inflation adjustment of applicable dollar amount ,in the case of any taxable year beginning in a calendar year after #bjad1 the dollar amount in paragraph 7#c77;,a77i7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjac for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ejj4 4 7b7 ,credit made refundable2 matching contributions 7#a7 ,credit made refundable ,the ,internal ,revenue ,code of #aihf is amended by moving section #be;,b to subpart ,c of part ,,iv of subchapter ,a of chapter #a of such ,code 7relating to refundable credits71 by inserting section #be;,b after section #cf;,b1 and by redesignating section #be;,b as section #cf;,c4 7#b7 ,matching contributions ,section #cf;,c1 as redesignated by paragraph 7#a71 is amended by adding at the end the following3 7g7 ,matching contributions 7#a7 ,in general ,the credit allowed to an eligible individual under this section for any taxable year shall be twice the credit which would 7but for this subsection7 be allowed if-- 7,a7 the individual consents to the application of paragraph 7#b71 and 7,b7 a designation by such individual is in effect for such year under paragraph 7#c74 7#b7 ,credit paid into designated retirement account ,any credit under this section for any taxable year shall be paid by the ,secretary into the designated retirement account of the individual for such year4 ,the amount payable under the preceding sentence shall be subject to the reductions under section #fdjb in the same manner as if such amount were an overpayment4 ,the amount so paid shall be treated as refunded to such individual4 7#c7 ,designated retirement account ,for purposes of this subsection1 the term designated retirement account means any account or plan-- 7,a7 of a type to which qualified retirement savings contributions may be made1 7,b7 which is for such individual's benefit1 and 7,c7 which is designated by such individual 7in such form and manner as the ,secretary may provide7 on the return of tax for the taxable year4 7#d7 ,treatment of matching contributions ,in the case of an amount paid under paragraph 7#b7 into a designated retirement account-- 7,a7 any dollar limitation otherwise applicable to the amount of contributions or deferrals to such account shall be increased by the amount so paid1 7,b7 the individual's basis in such account shall not be increased by reason of the amount so paid1 and 7,c7 such amount shall be treated as an employer contribution for the plan year in which such amount is paid for purposes of-- 7i7 section #dja7k77#c71 and 7ii7 section #djh7k77#f77;,a77iii74 7#e7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary to address situations under which the ,secretary is not able to make a payment to a designated retirement account of an individual1 including a plan of an employer for which the individual no longer works and to an account that does not exist4 4 7#c7 ,conforming amendments 7,a7 ,section #fbaa7;b77#d77;,a7 is amended by inserting #cf;,c1 after #cf;,b14 7,b7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #be;,b4 7,c7 ,the table of sections for subpart ,c of such part is amended by adding at the end the following new item3 ,sec4 #cf;,c4 ,elective deferrals and ,,ira contributions by certain individuals4 4 7,d7 ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7c7 ,maximum contributions ,subsection 7a7 of section #cf;,c1 as redesignated by subsection 7b71 is amended to read as follows3 7a7 ,allowance of credit 7#a7 ,in general ,in the case of an eligible individual1 there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the applicable percentage of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as do not exceed the contribution limit4 7#b7 ,contribution limit ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,except as otherwise provided in this paragraph1 the contribution limit is #ejj 7#a1ejj for taxable years beginning after #bjbc74 7,b7 ,annual increases to reach #a1ejj ,in the case of taxable years beginning in a calendar year after #bjac and before #bjbd1 the contribution limit shall be the sum of-- 7i7 the contribution limit for taxable years beginning in the preceding calendar year 7as increased under this subparagraph71 and 7ii7 #ajj4 7,c7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjbc1 the #a1ejj amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjbb for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ej4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #ajf4 ,retirement handbook and retirement readiness checklist 7a7 ,in general ,section #gjd of the ,social ,security ,act is amended by adding at the end the following new subsection3 7f7 ,retirement information 7#a7 ,in general ,the ,commissioner1 in consultation with the ,social ,security ,advisory ,board1 shall prepare-- 7,a7 the financial reference handbook described in paragraph 7#b71 and 7,b7 the retirement readiness checklist described in paragraph 7#c74 7#b7 ,financial reference handbook ,the handbook described in this paragraph is a pamphlet which-- 7,a7 includes definitions of basic financial terms1 7,b7 contains a listing of financial issues and problems facing individuals who are retiring and explanations of methods of dealing with the issues and problems1 and 7,c7 is in a form readily understandable by the average retiree4 7#c7 ,readiness checklist ,the checklist described in this paragraph is a list of questions that individuals need to consider in preparation for retirement1 including the following3 7,a7 ,what annual income will the individual need in retirement8 7,b7 ,how many years will the individual live in retirement8 7,c7 ,what will be the cost of ,medicare premiums8 7,d7 ,what will be the cost of insurance necessary to supplement ,medicare8 7,e7 ,how will savings be invested in retirement8 7,f7 ,how will taxes affect your retirement income8 ,the checklist will include answers to the questions or directions as to where information is available to answer the questions4 ,all information shall be in a form readily understandable to the average recipient of the checklist4 7#d7 ,revisions ,the ,commissioner shall periodically revise and update the handbook and checklist prepared under this subsection4 7#e7 ,distribution of materials 7,a7 ,handbook ,the financial reference handbook described in paragraph 7#b7 shall be included with materials provided to an individual when the individual first applies for benefits under title ,,ii and such other times as the ,commissioner determines appropriate4 7,b7 ,checklist ,the retirement readiness checklist described in paragraph 7#c7 shall be included with an individual's annual social security account statement provided under section #aadc4 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act1 but the handbooks and checklists required to be provided by such amendment shall be provided on or after ,january #a1 #bjad 7or such earlier date as the ,commissioner of ,social ,security may provide74 #ajg4 ,additional time to adopt a qualified plan 7a7 ,in general ,subsection 7a7 of section #dja is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,the adoption of a plan by the applicable date shall not cause a plan to fail to meet the requirements of this section for a plan year4 ,for purposes of the preceding sentence1 the term applicable date means the due date 7including extensions7 for filing the ,federal income tax return for the employer's taxable year in which ends the plan year for which the plan is effective4 ,a plan adopted in accordance with this paragraph will be treated as established by the end of the employer's taxable year for purposes of applying section #djd7;a74 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to years beginning after ,december #ca1 #bjac4 ,,ii ,encouraging ,small ,businesses to ,enter and ,remain in the ,employer ,retirement ,plan ,system #bja4 ,increase in credit limitation for small employer pension plan startup costs 7a7 ,in general ,paragraph 7#a7 of section #de;,e7b7 is amended to read as follows3 7#a7 for the first credit year and each of the #b taxable years immediately following the first credit year1 the greater of-- 7,a7 #ejj1 or 7,b7 the lesser of-- 7i7 #bej for each employee of the eligible employer who is not a highly compensated employee 7as defined in section #dae7q77 and who is eligible to participate in the eligible employer plan maintained by the eligible employer1 or 7ii7 #e1jjj1 and 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #bjb4 ,eliminating barriers to use of multiple employer plans ,by ,december #ca1 #bjac1 the ,secretaries of the ,treasury and ,labor shall-- 7#a7 prescribe administrative guidance establishing conditions under which an employer participating in a plan described in section #dac7;c7 of the ,internal ,revenue ,code of #aihf shall not have any liability under title ,i of the ,employee ,retirement ,income ,security ,act of #aigd with respect to the acts or omissions of one or more other participating employers1 which regulations may require that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers1 7#b7 prescribe administrative guidance establishing conditions under which a plan described in section #dac7;c7 of such ,code may be treated as satisfying the qualification requirements of sections #dja7;a7 and #dac7;c7 of such ,code despite the violation of such requirements by one or more participating employers1 including requiring1 if appropriate1 that the portion of the plan attributable to such participating employers be spun off to plans maintained by such employers1 and 7#c7 prescribe administrative guidance providing simplified means by which plans described in section #dac7;c7 of such ,code may satisfy the requirements of section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd4 ,,iii ,preservation of ,income #cja4 ,study of application of spousal consent rules to defined contribution plans 7a7 ,study ,the ,government ,accountability ,office shall conduct a study of the feasibility and desirability of extending the application of the requirements of section #bje of the ,employee ,retirement ,income ,security ,act of #aigd and sections #dja7;a77#aa7 and #dag of the ,internal ,revenue ,code of #aihf 7relating to spousal consent requirements7 to defined contribution plans to which such requirements do not apply4 ,such study shall include consideration of any modifications of such requirements that are necessary to apply such requirements to such plans4 7b7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,government ,accountability ,office shall report the results of the study1 together with any recommendations for legislative changes1 to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and the ,workforce of the ,house of ,representatives4 #cjb4 ,administration of joint and survivor annuity requirements 7a7 ,amendments to the ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,section #djb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajb7;c77 is amended-- 7,a7 in paragraph 7#b7 by striking or at the end1 7,b7 in paragraph 7#c7 by striking the period at the end and inserting 2 or1 and 7,c7 by adding at the end the following new paragraph3 7#d7 that a named fiduciary1 or a fiduciary designated by a named fiduciary pursuant to a plan procedure described in section #dje7;e71 may appoint an annuity administrator or administrators with responsibility for administration of an individual account plan in accordance with the requirements of section #bje and payment of any annuity required thereunder4 4 7#b7 ,section #dje of such ,act 7#bi ,u4,s4,c4 #aaje7 is amended by adding at the end the following new subsection3 7e7 ,annuity ,administrator ,if an annuity administrator or administrators have been appointed under section #djb7;c77#d7 and such entity acknowledges in writing that they are the annuity administrator and a fiduciary under the plan with respect to their appointed duties1 then neither the named fiduciary nor any appointing fiduciary shall be liable for any act or omission of the annuity administrator except to the extent that-- 7#a7 the named fiduciary or appointing fiduciary violated section #djd7;a77#a7-- 7,a7 with respect to such allocation or designation1 or 7,b7 in continuing the allocation or designation1 7#b7 the named fiduciary or appointing fiduciary would otherwise be liable in accordance with subsection 7a71 or 7#c7 the entity appointed to be the annuity administrator is neither an insurance company nor approved to be an annuity administrator by the ,secretary4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply as of the date of enactment of this ,act4 #cjc4 ,availability of distribution options 7a7 ,lifetime income investments ,by the date that is one year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue final regulations under which it is clarified that any specified age or service condition 7or combination of age and service conditions7 with respect to a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77 under a defined contribution plan shall be disregarded in determining whether such lifetime income investment is currently available to an employee for purposes of ,treasury ,regulation section #a4dja7;a77#d7-d7;b7 7or any successor provision74 7b7 ,enforcement ,as of the date of enactment of this ,act1 the ,secretary of the ,treasury shall administer and enforce the law in accordance with subsection 7a7 with respect to plan years beginning before1 on1 or after the date of enactment of this ,act4 7c7 ,effective date ,this section shall take effect as of the date of enactment of this ,act4 #cjd4 ,rollover of insurance contracts to ,i,r,as 7a7 ,in general ,section #djh7;a77#c7 is amended by inserting other than insurance contracts that were rolled over to an ,,ira from a qualified retirement plan described in clause 7iii71 7iv71 or 7vi7 of section #djb7;c77#h77;,b7 provided that such contracts provide only incidental death benefits taking into account both the ,,ira and the qualified retirement plan after contract4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to years beginning after ,december #ca1 #bjac4 #cje4 ,portability of lifetime income options 7a7 ,in general ,subsection 7a7 of section #dja is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,portability of lifetime income 7,a7 ,in general ,a trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing-- 7i7 qualified distributions of a lifetime income investment1 or 7ii7 distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract1 on or after the date that is #ij days prior to the date on which such lifetime income investment is no longer authorized to be held as an investment option under the plan except as may otherwise be provided by regulations4 7,b7 ,definitions ,for purposes of this subsection-- 7i7 the term qualified distribution means a direct trustee-to-trustee transfer to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b771 as described in section #dja7;a77#ca77;,a71 7ii7 the term lifetime income investment means an investment option that is designed to provide an employee with election rights-- 7,i7 that are not uniformly available with respect to other investment options under the plan1 and 7,,ii7 that are to a lifetime income feature available through a contract or other arrangement offered under the plan or under another eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 through a direct trustee-to-trustee transfer to such other eligible retirement plan under section #dja7;a77#ca77;,a71 7iii7 the term lifetime income feature means-- 7,i7 a feature that guarantees a minimum level of income annually 7or more frequently7 for at least the remainder of the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 or 7,,ii7 an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments 7not less frequently than annually7 over the life of the employee or the joint lives of the employee and the employee's designated beneficiary1 taking into account the rules of clause 7iii7 of section #dja7;a77#i77;,i71 and 7iv7 the term qualified plan distribution annuity contract means an annuity contract purchased for a participant and distributed to the participant by a plan described in subparagraph 7,b7 of section #djb7;c77#h7 7without regard to clauses 7i7 and 7ii7 thereof74 4 7b7 ,cash or deferred arrangement ,clause 7i7 of section #dja7k77#b77;,b7 is amended by striking or at the end of subclause 7,,iv71 by striking and at the end of subclause 7,v7 and inserting or1 and by adding at the end of clause 7i7 the following3 7,,vi7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan1 provided that any distribution under this subclause must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv771 and 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,paragraph 7#aa7 of section #djc7;b7 is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c71 and by inserting 1 or1 and by adding at the end the following3 7,d7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan1 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7#b7 ,custodial accounts ,clause 7ii7 of section #djc7;b77#g77;,a7 is amended to read as follows3 7ii7 under the custodial account1 no such amounts may be paid or made available to any distributee 7unless such amount is a distribution to which section #gb7t77#b77;,g7 applies7 before-- 7,i7 the employee dies1 7,,ii7 the employee attains age #ei1 7,,iii7 the employee has a severance from employment1 7,,iv7 the employee becomes disabled 7within the meaning of section #gb7m77#g771 7,v7 in the case of contributions made pursuant to a salary reduction agreement 7within the meaning of section #caba7;a77#e77;,d771 the employee encounters financial hardship1 or 7,,vi7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan1 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv774 4 7d7 ,eligible deferred compensation plans ,subparagraph 7,a7 of section #deg7;d77#a7 is amended by striking or at the end of clause 7ii71 by inserting or at the end of clause 7iii71 and by adding after clause 7iii7 the following3 7iv7 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii771 the date that is #ij days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan1 provided that any distribution under this subparagraph must be in the form of a qualified distribution 7as defined in section #dja7;a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in section #dja7;a77#ch77;,b77iv771 4 7e7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #cjf4 ,lost ,pension ,plan ,registry 7a7 ,in general ,subtitle ,c of title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda et seq47 is amended by adding at the end the following3 #djea4 ,lost ,pension ,plan ,registry ,no later than ,december #ca1 #bjad1 the corporation shall establish a database to be known as the ,lost ,pension ,plan ,registry4 ,the corporation shall-- 7#a7 ensure that the database contains a record of the information described in section #fjeg7;b7 of the ,internal ,revenue ,code of #aihf that is transmitted by the ,secretary of the ,treasury to the corporation pursuant to section #fjeg7;d7 of such ,code1 and 7#b7 post such record on the corporation's website in a manner calculated to inform participants and beneficiaries of the name1 location1 and contact information for any plan that has changed its identity or status4 4 7b7 ,amendment to the ,internal ,revenue ,code ,section #fjeg7;d7 of the ,internal ,revenue ,code of #aihf is amended by inserting and to the ,pension ,benefit ,guaranty ,corporation before the period at the end4 ,,iv ,simplification and ,clarification of ,qualified ,retirement ,plan ,rules #dja4 ,exception from required distributions where aggregate retirement savings do not exceed #ajj1jjj 7a7 ,in general ,section #dja7;a77#i7 7relating to required distributions7 is amended by adding at the end the following new subparagraph3 7,i7 ,exception from required minimum distributions during life of employee or beneficiary where assets do not exceed #ajj1jjj 7i7 ,in general ,if1 as of a measurement date1 the aggregate balance to the credit of an employee under all applicable eligible retirement plans does not exceed #ajj1jjj1 then the requirements of subparagraph 7,a7 shall not apply to the employee during any succeeding calendar year4 ,in addition1 if1 as of a measurement date1 the aggregate balance to the credit of an employee under all applicable eligible retirement plans does not exceed #ajj1jjj1 then the requirements of subparagraph 7,b7 shall not apply during any succeeding calendar year to the employee's designated beneficiary with respect to the designated beneficiary's interest in the balance to the credit of the deceased employee4 7ii7 ,applicable eligible retirement plan ,for purposes of this subparagraph1 the term applicable eligible retirement plan means an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 and any other plan1 contract1 or arrangement to which the requirements of this paragraph apply4 7iii7 ,special rule for benefits paid as a life annuity from defined benefit plan ,in determining the aggregate balance under clause 7i71 there shall not be taken into account the value of any benefits under a defined benefit plan that1 on the measurement date1 are being paid as a life annuity4 7iv7 ,measurement date 7,i7 ,initial measurement dates ,the initial measurement date for an individual is the last day of the calendar year preceding the earlier of-- 7aa7 the calendar year in which the employee attains age #gj1 or 7bb7 the calendar year in which the employee dies4 7,,ii7 ,subsequent measurement dates ,if1 in a calendar year1 an individual who is exempted from the requirements of this paragraph pursuant to clause 7i7 receives contributions1 rollovers1 or transfers of amounts1 or accrues additional benefits under a defined benefit plan1 that were not previously taken into account in applying this subparagraph1 then the last day of that calendar year shall be a new measurement date and a new determination shall be made as to whether clause 7i7 applies4 7v7 ,determining value of defined benefit plan benefits ,the value of defined benefit plan benefits is determined in accordance with the applicable interest rate and applicable mortality rate assumptions under section #dag7;e71 except that the value shall be equal to the amount of the single sum payment payable to the extent available under the plan4 7vi7 ,phase-in of minimum distribution requirements ,for an individual whose aggregate balance exceeds the exemption level in clause 7i7 by less than #aj1jjj1 required minimum distribution requirements will phase in based on the ratio of-- 7,i7 the amount by which the aggregate balance exceeds the exemption level1 to 7,,ii7 #aj1jjj4 7vii7 ,cost of living adjustments ,the ,secretary shall adjust annually the #ajj1jjj amount specified in clause 7i7 for increases in the cost-of-living at the same time and in the same manner as adjustments under section #dae7;d72 except that the base period shall be the calendar quarter beginning ,july #a1 #bjac1 and any increase which is not a multiple of #e1jjj shall be rounded to the next lowest multiple of #e1jjj4 4 7b7 ,effective date ,the amendment made by this section shall apply to initial measurement dates occurring on or after ,december #ca1 #bjac4 #djb4 ,expansion of ,employee ,plans ,compliance ,resolution ,system 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall modify the ,employee ,plans ,compliance ,resolution ,system 7as described in ,revenue ,procedure #bjac-ab7 to achieve the results specified in the succeeding subsections of this section and to further facilitate corrections and compliance in such other means as the ,secretary deems appropriate4 7b7 ,loan error 7#a7 ,in the case of plan loan errors for which corrections are specified under the voluntary compliance program1 self-correction shall be made available by methods applicable to such loans through the voluntary compliance program4 7#b7 ,the ,secretary of ,labor shall treat any loan error corrected pursuant to paragraph 7#a7 as meeting the requirements of the ,voluntary ,fiduciary ,correction ,program of the ,department of ,labor4 7c7 #deg7;b7 plan correction ,the ,secretary of the ,treasury shall update the ,employee ,plans ,compliance ,resolution ,system to provide the same type of comprehensive correction program that is available under such system to retirement plans qualified under section #dja7;a7 of the ,internal ,revenue ,code of #aihf to plans maintained pursuant to section #deg7;b7 of such ,code by an employer described in section #deg7;e77#a77;,a7 of such ,code4 7d7 ,,epcrs for ,i,r,as ,the ,secretary of the ,treasury shall expand the ,employee ,plans ,compliance ,resolution ,system to allow custodians of individual retirement plans to address inadvertent errors for which the owner of an individual retirement plan was not at fault1 including 7but not limited to7-- 7#a7 waivers of the excise tax that would otherwise apply under section #digd of the ,internal ,revenue ,code of #aihf1 7#b7 under the self-correction component of the ,employee ,plans ,compliance ,resolution ,system1 waivers of the #fj-;day deadline for a rollover where the deadline is missed for reasons beyond the reasonable control of the account owner1 and 7#c7 rules permitting a nonspouse beneficiary to return distributions to an inherited individual retirement plan described in section #djh7;d77#c77;,c7 of the ,internal ,revenue ,code of #aihf in a case where1 due to an inadvertent error by a service provider1 the beneficiary had reason to believe that the distribution could be rolled over without inclusion in income of any part of the distributed amount4 7e7 ,required minimum distribution corrections ,the ,secretary of the ,treasury shall expand the ,employee ,plans ,compliance ,resolution ,system to allow plans to which such system applies and custodians of individual retirement plans to self-correct1 without an excise tax1 any inadvertent errors pursuant to which a distribution is made no more than #ahj days after it was required to be made4 7f7 ,automatic feature error correction ,in order to promote the adoption of automatic enrollment and automatic escalation1 the ,secretary of the ,treasury shall modify the ,employee ,plans ,compliance ,resolution ,system to establish specific correction methods for errors in implementing automatic enrollment and automatic escalation features4 #djc4 ,use of forfeitures to fund safe harbor contributions 7a7 ,in general ,section #dja7k7 7as amended by this ,act7 is amended by adding at the end the following new paragraph3 7#ag7 ,a matching contribution or nonelective contribution described in paragraph 7#c77;,d77ii71 subparagraph 7,b7 or 7,c7 of paragraph 7#ab71 or paragraph 7#ac77;,d7 shall not fail to satisfy the definition under such paragraph merely because the contribution is funded in whole or in part by forfeitures4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to forfeitures allocated in accordance with section #dja7k77#ad7 of the ,internal ,revenue ,code of #aihf 7as amended by subsection 7a77 before1 on or after the date of enactment of this ,act4 #djd4 ,substantial cessation of operations 7a7 ,in general ,subsection 7e7 of section #djfb of the ,employee ,retirement ,income ,security ,act of #aigd is amended by striking ,if an employer and inserting 7#a7 ,in ,general4--,if an employer1 and by adding at the end thereof the following new paragraph3 7#b7 ,substantial cessation of operations ,an employer shall not be treated as having a cessation described in paragraph 7#a7 unless-- 7,a7 all operations at a facility in a location are ceased and-- 7i7 such cessation is reasonably expected to be permanent1 7ii7 no portion of such operations is moved to another facility at a different location1 7iii7 no portion of such operations is assumed or otherwise transferred to another employer1 and 7iv7 no other operations are reasonably expected to be maintained at such facility1 and 7,b7 as a result of the cessation described in subparagraph 7,a71 more than #bj percent of the employees of the employer have a termination of employment that is reasonably expected to be permanent4 ,for purposes of this subparagraph1 employees of the employer shall include all employees treated as employed by a single employer under sections #baj7;c7 and 7d74 4 7b7 ,direction to the corporation ,the ,pension ,benefit ,guaranty ,corporation shall not take any enforcement1 administrative1 or other actions pursuant to section #djfb7;e7 of such ,act that are inconsistent with subparagraph 7,a7 of section #djfb7;e77#b7 of such ,act1 as amended1 without regard to whether such actions relate to a cessation or other event that occurs before or after the date of enactment of this ,act4 7c7 ,effective date ,subsection 7b7 and the amendment made by subsection 7a7 shall apply as of the date of enactment of this ,act4 #dje4 ,church plan clarification 7a7 ,application of controlled group rules to church plans 7#a7 ,in general ,section #dad7;c7 is amended-- 7,a7 by striking ,for purposes and inserting the following3 7#a7 ,in general ,for purposes 1 and 7,b7 by adding at the end the following new paragraph3 7#b7 ,church plans 7,a7 ,general ,rule ,except as provided in subparagraphs 7,b7 and 7,c71 for purposes of this subsection and subsection 7m71 an organization that is otherwise eligible to participate in a church plan as defined in subsection 7e7 shall not be aggregated with another such organization and treated as a single employer with such other organization unless-- 7i7 one such organization provides directly or indirectly at least #hj percent of the operating funds for the other organization during the preceding tax year of the recipient organization1 and 7ii7 there is a degree of common management or supervision between the organizations4 ,for purposes of this subparagraph1 a degree of common management or supervision exists only if the organization providing the operating funds is directly involved in the day-to-day operations of the other organization4 7,b7 ,nonqualified ,church-,controlled ,organizations ,notwithstanding the provisions of subparagraph 7,a71 for purposes of this subsection and subsection 7m71 an organization that is a nonqualified church-controlled organization shall be aggregated with one or more other nonqualified church-controlled organizations1 or with an organization that is not exempt from tax under section #eja1 and treated as a single employer with such other organizations1 if at least #hj percent of the directors or trustees of such organizations are either representatives of1 or directly or indirectly controlled by1 the first organization4 ,for purposes of this subparagraph1 a nonqualified church controlled organization shall mean a church-controlled organization described in section #eja7;c77#c7 that is not a qualified church-controlled organization described in section #caba7w77#c77;,b74 7,c7 ,permissive ,aggregation ,among ,church-,related ,organizations ,organizations described in subparagraph 7,a7 may elect to be treated as under common control for purposes of this subsection4 ,such election shall be made by the church or convention or association of churches with which such organizations are associated within the meaning of section #dad7;e77#c77;,d71 or by an organization determined by such church or convention or association of churches to be the appropriate organization for making such election4 7,d7 ,permissive ,disaggregation of ,church-,related ,organizations ,for purposes of subparagraph 7,a7 above1 in the case of a church plan 7as defined in section #dad7;e771 any employer may permissively disaggregate those entities that are not churches 7as defined in section #djc7;b77#ab77;,b77 separately from those entities that are churches1 even if such entities maintain separate church plans4 7,e7 ,anti-,abuse ,rule ,for purposes of subparagraphs 7,a7 and 7,b71 the anti-abuse rule in ,treasury ,regulation section #a4dad7;c7-#e7;f7 shall apply4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to taxable years beginning before1 on1 or after the date of the enactment of this ,act4 7b7 ,application of contribution and funding limitations to #djc7;b7 grandfathered defined benefit plans 7#a7 ,in general ,section #bea7;e77#e7 of the ,tax ,equity and ,fiscal ,responsibility ,act of #aihb 7,public ,law #ig-bdh71 is amended-- 7,a7 by striking #djc7;b77#b7 and inserting #djc7;b71 and 7,b7 by inserting before the period at the end the following3 1 and shall be subject to the applicable limitations of section #dae7;b7 of such ,code as if it were a defined benefit plan under section #dja7;a7 of such ,code and not the limitations of section #dae7;c7 of such ,code 7relating to limitation for defined contribution plans744 7#b7 ,effective date ,the amendments made by this subsection shall apply as if included in the enactment of the ,tax ,equity and ,fiscal ,responsibility ,act of #aihb4 7c7 ,automatic enrollment by church plans 7#a7 ,in general ,this subsection shall supersede any law of a ,state that relates to wage1 salary1 or payroll payment1 collection1 deduction1 garnishment1 assignment or withholding which would directly or indirectly prohibit or restrict the inclusion in any church plan 7as defined in this subsection7 of an automatic contribution arrangement4 7#b7 ,definition of automatic contribution arrangement ,for purposes of this subsection1 the term automatic contribution arrangement means an arrangement-- 7,a7 under which a participant may elect to have the plan sponsor make payments as contributions under the plan on behalf of the participant1 or to the participant directly in cash1 and 7,b7 under which a participant is treated as having elected to have the plan sponsor make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made 7or specifically elects to have such contributions made at a different percentage74 7#c7 ,notice requirements 7,a7 ,the plan administrator of an automatic contribution arrangement shall1 within a reasonable period before such plan year1 provide to each participant to whom the arrangement applies for such plan year notice of the participant's rights and obligations under the arrangement which-- 7i7 is sufficiently accurate and comprehensive to apprise the participant of such rights and obligations1 and 7ii7 is written in a manner calculated to be understood by the average participant to whom the arrangement applies4 7,b7 ,a notice shall not be treated as meeting the requirements of subparagraph 7,a7 with respect to a participant unless-- 7i7 the notice includes an explanation of the participant's right under the arrangement not to have elective contributions made on the participant's behalf 7or to elect to have such contributions made at a different percentage71 7ii7 the participant has a reasonable period of time1 after receipt of the notice described in subparagraph 7,a7 and before the first elective contribution is made1 to make such election1 and 7iii7 the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the participant4 7#d7 ,effective date ,this subsection shall take effect on the date of the enactment of this ,act4 7d7 ,allow certain plan transfers and mergers 7#a7 ,in general ,section #dad is amended by adding at the end the following new subsection3 7y7 ,certain plan transfers and mergers 7#a7 ,in general ,under rules prescribed by the ,secretary1 except as provided in paragraph 7#b71 no amount shall be includible in gross income by reason of-- 7,a7 a transfer of all or a portion of the account balance of a participant or beneficiary1 whether or not vested1 from a plan described in section #dja7;a7 or an annuity contract described in section #djc7;b71 which is a church plan described in section #dad7;e7 to an annuity contract described in section #djc7;b71 if such plan and annuity contract are both maintained by the same church or convention or association of churches1 7,b7 a transfer of all or a portion of the account balance of a participant or beneficiary1 whether or not vested1 from an annuity contract described in section #djc7;b7 to a plan described in section #dja7;a7 or an annuity contract described in section #djc7;b71 which is a church plan described in section #dad7;e71 if such plan and annuity contract are both maintained by the same church or convention or association of churches1 or 7,c7 a merger of a plan described in section #dja7;a71 or an annuity contract described in section #djc7;b71 which is a church plan described in section #dad7;e7 with an annuity contract described in section #djc7;b71 if such plan and annuity contract are both maintained by the same church or convention or association of churches4 7#b7 ,limitation ,paragraph 7#a7 shall not apply to a transfer or merger unless the participant's or beneficiary's benefit immediately after the transfer or merger is equal to or greater than the participant's or beneficiary's benefit immediately before the transfer or merger4 7#c7 ,qualification ,a plan or annuity contract shall not fail to be considered to be described in sections #dja7;a7 or #djc7;b7 merely because such plan or account engages in a transfer or merger described in this subsection4 7#d7 ,definitions ,for purposes of this subsection3 7,a7 ,church ,the term church includes an organization described in subparagraph 7,a7 or 7,b77ii7 of subsection 7e77#c74 7,b7 ,annuity contract ,the term annuity contract includes a custodial account described in section #djc7;b77#g7 and a retirement income account described in section #djc7;b77#i74 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to transfers or mergers occurring after the date of the enactment of this ,act4 7e7 ,investments by church plans in collective trusts 7#a7 ,in general ,in the case of-- 7,a7 a church plan 7as defined in section #dad7;e7 of the ,internal ,revenue ,code #aihf71 including a plan described in section #dja7;a7 of such ,code and a retirement income account described in section #djc7;b77#i7 of such ,code1 and 7,b7 an organization described in section #dad7;e77#c77;,a7 of such ,code the principal purpose or function of which is the administration of such a plan or account1 the assets of such plan1 account1 or organization 7including any assets otherwise permitted to be commingled for investment purposes with the assets of such a plan1 account1 or organization7 may be invested in a group trust otherwise described in ,internal ,revenue ,service ,revenue ,ruling #ha-ajj 7as modified by ,internal ,revenue ,service ,revenue ,rulings #bjjd-fg and #bjaa-a71 or any subsequent revenue ruling that supersedes or modifies such revenue ruling1 without adversely affecting the tax status of the group trust1 such plan1 account1 or organization1 or any other plan or trust that invests in the group trust4 7#b7 ,effective date ,this subsection shall apply to investments made after the date of the enactment of this ,act4 #djf4 ,protecting older1 longer service participants 7a7 ,in general ,paragraph 7#d7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#d7 ,nondiscrimination 7,a7 ,in general ,a trust shall not constitute a qualified trust under this section unless the contributions or benefits provided under the plan do not discriminate in favor of highly compensated employees 7within the meaning of section #dad7q774 ,for purposes of this paragraph1 there shall be excluded from consideration employees described in section #daj7;b77#c7 7,a7 and 7,c74 7,b7 ,protection of older1 longer service participants 7i7 7,i7 ,a defined benefit plan described in subclause 7,,ii7 shall not fail to satisfy this paragraph with respect to plan benefits1 rights1 or features by reason of-- 7aa7 the composition of the closed class of participants described in subclause 7,,ii71 or 7bb7 the benefits1 rights1 or features provided to such closed class4 7,,ii7 ,a plan is described in this subclause if-- 7aa7 the plan provides benefits1 rights1 or features to a closed class of participants1 7bb7 such closed class and such benefits1 rights1 and features satisfy the requirements of subparagraph 7,a7 7without regard to this clause7 as of the date that the class was closed1 and 7cc7 after the date as of which the class was closed1 any plan amendments that modify the closed class or the benefits1 rights1 and features provided to such closed class satisfy subparagraph 7,a7 7without regard to this clause74 ,if a plan amendment causes a plan to cease to be described in this subclause 7,,ii7 by reason of subclause 7,,ii77cc71 the plan is nevertheless described in this subclause 7,,ii7 if such plan satisfies this subclause 7,,ii7 7without regard to subclause 7,,ii77cc77 as of the effective date of such amendment4 ,in such cases1 subclauses 7,,ii77bb7 and 7cc7 shall subsequently be applied by reference to the effective date of the plan amendment1 rather than by reference to the original date that the class was closed4 7ii7 7,i7 ,a defined contribution plan described in subclause 7,,ii7 shall permitted to be tested on a benefits basis4 7,,ii7 ,a defined contribution plan is described in this subclause if-- 7aa7 the plan provides make-whole contributions to a closed class of participants whose defined benefit plan accruals have been reduced or eliminated1 7bb7 such closed class of participants satisfies section #daj7;b77#b77;,a77i7 as of the date that the class of participants was closed1 and 7cc7 after the date as of which the class was closed1 any plan amendments that modify the closed class or the allocations1 benefits1 rights1 and features provided to such closed class satisfy subparagraph 7,a7 7without regard to this clause74 ,if a plan amendment causes a plan to cease to be described in this subclause 7,,ii7 by reason of subclause 7,,ii77cc71 the plan is nevertheless described in this subclause 7,,ii7 if such plan satisfies this subclause 7,,ii7 7without regard to subclause 7,,ii77cc77 as of the effective date of such amendment4 ,in such cases1 subclause 7,,ii77bb7 and 7cc7 shall subsequently be applied by reference to the effective date of the plan amendment1 rather than by reference to the original date that the class was closed4 7,,iii7 ,in addition to other testing methodologies otherwise applicable1 for purposes of determining compliance with this paragraph and with section #daj7;b7 of the portion of one or more defined contribution plans described in subclause 7,,ii7 that provide make-whole contributions1 such portion of such plans may be aggregated and tested on a benefits basis with the portion of one or more defined contribution plans that-- 7aa7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 or 7bb7 consists of an employee stock ownership plan within the meaning of section #dige7;e77#g7 or a tax credit employee stock ownership plan within the meaning of section #dji7;a74 ,for such purposes1 matching contributions shall be treated in the same manner as employer contributions that are made without regard to whether an employee makes an elective contribution or employee contribution1 including for purposes of applying the rules of subsection 7l74 7,c7 ,definitions ,for purposes of this paragraph-- 7i7 ,make-whole contributions ,the term make-whole contributions means allocations for each employee in the class that are reasonably calculated1 in a consistent manner1 to replace some or all of the retirement benefits that the employee would have received under the defined benefit plan and any other plan or arrangement if the employee had continued to benefit at the same level under such defined benefit plan and such other plan or arrangement4 7ii7 ,references to closed class of participants ,references to a closed class of participants and similar references to a closed class shall include arrangements under which one or more classes of participants are closed4 7,d7 ,protecting grandfathered participants in defined benefit plans 7i7 ,one or more defined benefit plans described in clause 7ii7 shall be permitted to be tested on a benefits basis with one or more defined contribution plans4 7ii7 ,a defined benefit plan is described in this clause if-- 7,i7 the plan provides benefits to a closed class of participants1 7,,ii7 the plan and such benefits satisfy the requirements of subparagraph 7,a7 7without regard to this subparagraph7 as of the date the class was closed1 and 7,,iii7 after the date as of which the class was closed1 any plan amendments that modify the closed class or the benefits provided to such closed class satisfy subparagraph 7,a7 7without regard to this subparagraph74 ,if a plan amendment causes a plan to cease to be described in this clause 7ii7 by reason of subclause 7,,iii71 the plan is nevertheless described in this clause 7ii7 if such plan satisfies this clause 7ii7 7without regard to subclause 7,,iii77 as of the effective date of such amendment4 ,in such cases1 subclauses 7,,ii7 and 7,,iii7 shall subsequently be applied by reference to the effective date of the plan amendment1 rather than by reference to the original date that the class was closed4 7iii7 ,in addition to other testing methodologies otherwise applicable1 for purposes of determining compliance with this paragraph and with section #daj7;b7 of one or more defined benefit plans described in clause 7ii71 such plans may be aggregated and tested on a benefits basis with the portion of one or more defined contribution plans that-- 7,i7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 or 7,,ii7 consists of an employee stock ownership plan within the meaning of section #dige7;e77#g7 or a tax credit employee stock ownership plan within the meaning of section #dji7;a74 ,for such purposes1 matching contributions shall be treated in the same manner as employer contributions that are made without regard to whether an employee makes an elective contribution or employee contribution1 including for purposes of applying the rules of subsection 7l74 7,e7 ,rules ,the ,secretary may prescribe rules designed to prevent abuse of the plan designs otherwise permitted by reason of subparagraphs 7,b7 and 7,d74 ,such rules shall be directed towards abuses under which the defined benefit plan was established within a specified period prior to the date that-- 7i7 the class of participants described in subparagraphs 7,b77i77,,ii77aa71 7,b77ii77,,ii77aa71 and 7,d77ii77,i7 is closed1 or 7ii7 the defined benefit plan accruals have been reduced or eliminated1 in the case of the make-whole contributions described in subparagraph 7,c74 7,f7 ,transition rules ,within one year after the date of enactment of the ,retirement ,plan ,simplification and ,enhancement ,act of #bjac1 the ,secretary shall prescribe rules that facilitate the use of the provisions of subparagraph 7,b7 and 7,d7 without regard to-- 7i7 whether the closing of the class of participants referred to in such subparagraphs occurred before or after such date of enactment1 or 7ii7 plan amendments that were adopted or effective before such date of enactment and that would not have been necessary if subparagraphs 7,b7 and 7,d7 had been in effect4 4 7b7 ,participation requirements ,paragraph 7#bf7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,i7 ,protected participants ,a plan described in this subparagraph shall be deemed to satisfy the requirements of subparagraph 7,a74 ,a plan is described in this paragraph if-- 7i7 the plan is amended to-- 7,i7 cease all benefit accruals1 or 7,,ii7 provide future benefit accruals only to a closed class of participants1 and 7ii7 the plan satisfies subparagraph 7,a7 7without regard to this subparagraph7 as of the effective date of the amendment4 ,the ,secretary may prescribe such rules as are necessary or appropriate to fulfill the purposes of this subparagraph1 including prevention of abuse of this subparagraph in the case of plans established within a specific period prior to the effective date of the amendment4 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act1 without regard to whether any plan modifications referenced in such amendments are adopted or effective before1 on1 or after such date of enactment4 #djg4 ,review and report to the ,congress relating to reporting and disclosure requirements 7a7 ,study ,as soon as practicable after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation shall review the reporting and disclosure requirements of-- 7#a7 title ,i of the ,employee ,retirement ,income ,security ,act of #aigd applicable to pension plans 7as defined in section #c7b7 of such ,act71 and 7#b7 the ,internal ,revenue ,code of #aihf applicable to qualified retirement plans 7as defined in section #digd7;c7 of such ,code without regard to paragraphs 7#d7 and 7#e7 thereof74 7b7 ,report ,not later than #ah months after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,pension ,benefit ,guaranty ,corporation1 jointly1 shall make such recommendations as may be appropriate to the appropriate committees of the ,congress to consolidate1 simplify1 standardize1 and improve the applicable reporting and disclosure requirements so as to simplify reporting for plans referenced to in subsection 7a7 and ensure that needed understandable information is provided to participants and beneficiaries of such plans4 #djh4 ,consolidation of defined contribution plan notices 7a7 ,in general 7#a7 ,not later than #ah months after the date of the enactment of this ,act1 the ,secretary of ,labor and the ,secretary of the ,treasury shall adopt final regulations providing that a plan may1 but is not required to1 consolidate two or more of the notices required under sections #djd7;c77#e77;,b7 and #ead7;e77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c771 sections #dja7k77#ab77;,d71 #dja7k77#ac77;,e71 and #dad7w77#d7 of the ,internal ,revenue ,code of #aihf1 and section #beej4djd;a-#e of title #bi1 ,code of ,federal ,regulations 7#bi ,c4,f4,r4 #beej4djd;a-#e7 into a single notice or1 to the extent provided by such regulations1 consolidate such notices with the summary plan description or summary of material modifications described in section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 so long as the combined notice1 summary plan description or summary of material modifications includes the required content1 clearly identifies the issues addressed therein1 and is provided at the time and with the frequency required for each such notice4 7#b7 ,the ,secretary of ,labor and the ,secretary of the ,treasury may include in such regulations rules to ensure that1 to the extent such notices are consolidated with the summary plan description or summary of material modifications1 the presentation1 placement1 or prominence of the information in such notices shall not have the effect of failing to inform participants and beneficiaries regarding the information in such notices4 7b7 ,provision of annual notices without regard to plan year 7#a7 ,clause 7i7 of section #djd7;c77#e77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77;,b77 is amended-- 7,a7 in subclause 7,i7 by striking within a reasonable period of time before each plan year1 and inserting within a reasonable period before the arrangement described in subparagraph 7,a7 applies to such participant or beneficiary1 and thereafter at least once within any #ab-month period 7without regard to the plan year7 during which such arrangement applies11 and 7,b7 in subclause 7,,ii7 by striking and before the beginning of the plan year4 7#b7 ,subparagraph 7,a7 of section #ead7;e77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c77;,a77 is amended by striking 1 within a reasonable period before such plan year1 provide to each participant to whom the arrangement applies for such plan year and inserting 1 within a reasonable period before the arrangement applies to a participant or beneficiary1 and thereafter at least once within any #ab-month period 7without regard to the plan year7 during which such arrangement applies1 provide4 7#c7 ,clause 7i7 of section #dja7k77#ac77;,e7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 within a reasonable period before each plan year1 each employee eligible to participate in the arrangement for such year receives and inserting each employee eligible to participate in the arrangement receives1 within a reasonable period before the employee becomes eligible1 and thereafter within a reasonable period before each plan year during which such arrangement applies14 7#d7 ,subparagraph 7,d7 of section #dja7k77#ab7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 within a reasonable period before any year1 given written notice and inserting given written notice1 within a reasonable period before the employee becomes eligible1 and thereafter within a reasonable period before each plan year during which such arrangement applies14 7#e7 ,subparagraph 7,a7 of section #dad7w77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 within a reasonable period before each plan year1 give to each employee to whom an arrangement described in paragraph 7#c7 applies for such plan year and inserting 1 within a reasonable period before an arrangement described in paragraph 7#c7 applies to an employee1 and thereafter at least once within any #ab-month period 7without regard to the plan year7 during which such arrangement applies1 give to each such employee4 #dji4 ,performance benchmarks for asset allocation funds ,not later than six months after the date of enactment of this ,act1 the ,secretary of ,labor shall modify the regulations under section #djd of the ,employee ,retirement ,income ,security ,act of #aigd to provide that1 in the case of a designated investment alternative that contains a mix of asset classes1 a plan administrator may1 but is not required to1 use a benchmark that is a blend of different broad-based securities market indices if-- 7#a7 the blend is reasonably representative of the asset class holdings of the designated investment alternative2 7#b7 for purposes of determining the blend's returns for #a-1 #e-1 and #aj-;calendar year periods 7or for the life of the alternative1 if shorter71 the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative2 and 7#c7 each securities market index that is used for an associated asset class would separately satisfy the requirements of such regulations for such asset class4 #daj4 ,permit nonspousal beneficiaries to roll assets to plans 7a7 ,in general ,section #djb7;c7 is amended by adding at the end the following new paragraph3 7#ab7 ,distributions to qualified plan of nonspouse beneficiary ,if1 with respect to any portion of a distribution from an eligible retirement plan described in paragraph 7#h77;,b77iii7 of a deceased employee1 a direct trustee-to-trustee transfer is made to a plan or annuity described in clause 7iii71 7iv71 7v71 or 7vi7 of paragraph 7#h77;,b7 of an individual who is a designated beneficiary 7as defined by section #dja7;a77#i77;,e77 of the employee and who is not the surviving spouse of the employee-- 7,a7 the transfer shall be treated as an eligible rollover distribution1 and 7,b7 section #dja7;a77#i77;,b7 7other than clause 7iv7 thereof7 shall apply to such plan4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to distributions made after the date of the enactment of this ,act4 #daa4 ,eliminate the 8first day of the month0 requirement 7a7 ,in general ,paragraph 7#d7 of section #deg7;b7 is amended to read as follows3 7#d7 which provides that compensation will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual1 4 7b7 ,effective date ,the amendment made by this section shall apply to years beginning after the date of the enactment of this ,act4 ,v ,provisions ensuring equity in divorce #eja4 ,special rules relating to treatment of qualified domestic relations orders 7a7 ,preservation of assets 7#a7 ,amendment of #aihf code ,section #dad7p7 is amended by redesignating paragraph 7#ac7 as paragraph 7#ad7 and by inserting after paragraph 7#ab7 the following new paragraph3 7#ac7 ,preservation of assets 7,a7 ,in general ,if a spouse or former spouse of a participant notifies a plan in writing that-- 7i7 an action is pending pursuant to a ,state domestic relations law 7including a community property law71 and 7ii7 all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action1 and includes with the notice evidence of the pendency of the action1 the plan administrator shall1 during the segregation period1 separately account for #ej percent of such benefits4 ,any amounts so separately accounted for may not be distributed by the plan during the segregation period4 7,b7 ,segregation period ,for purposes of subparagraph 7,a71 the term segregation period means the period-- 7i7 beginning on the date of the receipt of the notice1 and 7ii7 ending as of the close of the #ij-;day period beginning on such date 7or1 if earlier1 the date of receipt of a domestic relations order with respect to the participant and the spouse or former spouse or the date the action is no longer pending74 ,the segregation period shall be extended for #a or more additional periods described in the preceding sentence upon notice by the spouse or former spouse that the action described in subparagraph 7,a7 is still pending as of the close of any prior segregation period4 4 7#b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,section #bjf7;d77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;d77#c77 is amended by redesignating subparagraph 7,n7 as subparagraph 7,o7 and by inserting after subparagraph 7,m7 the following new subparagraph3 7,n7 ,preservation of assets 7i7 ,in general ,if a spouse or former spouse of a participant notifies a plan in writing that-- 7,i7 an action is pending pursuant to a ,state domestic relations law 7including a community property law71 and 7,,ii7 all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action1 and includes with the notice evidence of the pendency of the action1 the plan administrator shall1 during the segregation period1 separately account for #ej percent of such benefits4 ,any amounts so separately accounted for may not be distributed by the plan during the segregation period4 7ii7 ,segregation period ,for purposes of clause 7i71 the term segregation period means the period-- 7,i7 beginning on the date of the receipt of the notice1 and 7,,ii7 ending as of the close of the #ij-;day period beginning on such date 7or1 if earlier1 the date of receipt of a domestic relations order with respect to the participant and the spouse or former spouse or the date the action is no longer pending74 ,the segregation period shall be extended for #a or more additional periods described in the preceding sentence upon notice by the spouse or former spouse that the action described in clause 7i7 is still pending as of the close of any prior segregation period4 4 7b7 ,penalty for failure ,to provide information regarding alternate payees ,section #ejb7;c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacb7;c77 is amended by redesignating paragraphs 7#h7 and 7#i7 as paragraphs 7#i7 and 7#aj71 respectively1 and by inserting after paragraph 7#g7 the following new paragraph3 7#h7 ,failure to provide information regarding alternate payees ,the ,secretary may assess a civil penalty against any plan administrator of up to #ajj a day from the date of the plan administrator's failure or refusal to provide the information the plan administrator is required to provide under regulations under this ,act to prospective alternative payees under a domestic relations order under section #bjf7;d77#c7 or to the ,secretary or any representative of a prospective alternative payee in connection with such an order4 4 7c7 ,allocation of plan expenses in complying with domestic relations orders 7#a7 ,amendment of #aihf code ,section #dad7p71 as amended by subsection 7a71 is amended by redesignating paragraph 7#ad7 as paragraph 7#ae7 and by inserting after paragraph 7#ac7 the following new paragraph3 7#ad7 ,allocation of expenses ,any expenses incurred by a plan with respect to compliance with the requirements of this subsection shall not be allocated to an individual participant but rather shall be allocated among all participants on the basis of the relative value of each participant's share of the assets of the plan1 on the basis of a flat amount per participant1 or on any other reasonable basis provided for under the plan4 4 7#b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd ,section #bjf7;d77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajef7;d77#c771 as amended by subsection 7a71 is amended by redesignating subparagraph 7,o7 as subparagraph 7,p7 and by inserting after subparagraph 7,n7 the following new subparagraph3 7,o7 ,allocation of expenses ,any expenses incurred by a plan with respect to compliance with the requirements of this paragraph shall not be allocated to an individual participant but rather shall be allocated among all participants on the basis of the relative value of each participant's share of the assets of the plan1 on the basis of a flat amount per participant1 or on any other reasonable basis provided for under the plan4 4 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #ejb4 ,elimination of current connection requirement under ,railroad ,retirement ,act for certain survivors 7a7 ,in general ,section #b7;d77#a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bca;a7d77#a771 in the matter preceding paragraph 7i71 is amended by inserting 1 except with respect to survivors described in paragraph 7i71 7ii71 or 7v71 after ,december #ca1 #aiie7 and4 7b7 ,effective dates 7#a7 ,in general ,the amendment made by subsection 7a7 shall take effect on the date of enactment of this ,act4 7#b7 ,retroactive application to certain survivors ,if a survivor of a deceased employee would be entitled to an annuity by reason of the amendment made by subsection 7a7 but for the fact that the employee died before the date of the enactment of this ,act1 the survivor shall be entitled to such an annuity but only with respect to annuity payments for months beginning on or after such date4 ,appropriate adjustments shall be made in annuity payments of other individuals to reflect any annuity payable by reason of this paragraph4 #ejc4 ,permitting divorced spouses and widows and widowers to remarry after turning #fj without a penalty under ,railroad ,retirement ,act 7a7 ,in general 7#a7 ,divorced spouse ,section #b7;c77#d7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bca;a7c77#d77 is amended by adding at the end the following new sentence3 ,for purposes of paragraph 7ii77,b71 if a divorced wife marries after attaining age #fj1 such marriage shall be deemed not to have occurred44 7#b7 ,widows and widowers ,section #b7;d77#a77v7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bca;a7d77#a77v77 is amended by adding at the end the following new sentence3 ,for purposes of this paragraph1 if a widow marries after attaining age #fj1 such marriage shall be deemed not to have occurred44 7b7 ,effective dates 7#a7 ,in general ,the amendments made by this section shall take effect on the date of enactment of this ,act4 7#b7 ,retroactive application ,if a divorced wife1 widow1 or widower would be entitled to an annuity by reason of the amendments made by this section but for the fact the individual was married before the date of the enactment of this ,act1 the individual shall be entitled to such an annuity but only with respect to annuity payments for months beginning on or after such date4 ,appropriate adjustments shall be made in annuity payments of other individuals to reflect any annuity payable by reason of this paragraph4 #ejd4 ,repeal of jurisdictional requirement for court to treat military retirement pay as property of the military member and spouse 7a7 ,in general ,section #adjh7;c7 of title #aj1 ,united ,states ,code1 is amended by striking paragraph 7#d74 7b7 ,effective date ,the amendment made by this section shall apply to final decrees issued on or after the date of the enactment of this ,act4 #eje4 ,modification of reductions in disposable retired pay for payments in compliance with court orders 7a7 ,in general ,section #adjh7;d7 of title #aj1 ,united ,states ,code1 is amended by adding at the end the following new paragraph3 7#h7 ,notwithstanding subsection 7a77#d7 or 7e77#a71 if the disposable retired pay of a member is reduced under subparagraph 7,b7 of subsection 7a77#d7 as a result of a waiver required to receive compensation under title #ch1 or is reduced under subparagraph 7,c7 of subsection 7a77#d71 the ,secretary concerned shall pay 7subject to any other limitation under this section7 to the spouse or former spouse the lesser of-- 7,a7 the amount payable under the final court order from the disposable retired pay 7determined without regard to such reductions71 or 7,b7 #ajj percent of the disposable retired pay 7determined after such reductions74 4 7b7 ,effective ,date ,the amendment made by this section shall apply to payments of disposable retired pay attributable to periods beginning on or after the date of the enactment of this ,act with respect to final court orders issued on1 before1 or after such date4 #ejf4 ,survivor annuities for widows1 widowers1 and former spouses of federal employees who die before attaining age for deferred annuity under civil service retirement system 7a7 ,definition ,section #hcda7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by striking employee or ,member and inserting employee1 ,member1 or annuitant1 or of a former employee or ,member12 and 7#b7 in paragraph 7#b71 by striking employee or ,member and inserting employee1 ,member1 or annuitant1 or of a former employee or ,member14 7b7 ,benefits for widow1 widower1 or former spouse 7#a7 ,in general ,section #hcda of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7l7 ,if a former employee heretofore or hereafter separated from the service with title to deferred annuity from the ,fund hereafter dies before having established a valid claim for annuity and is survived by a widow or widower to whom married at the date of separation1 the widow or widower-- 7#a7 is entitled to an annuity equal to #ee percent of the deferred annuity of the former employee commencing on the day after the former employee dies and terminating on the last day of the month before the widow or widower dies or remarries before becoming #ee years of age2 or 7#b7 may elect to receive the lump-sum credit instead of annuity if the widow or widower is the individual who would be entitled to the lump-sum credit and files application therefor with the ,office before the award of the annuity4 ,notwithstanding the preceding sentence1 an annuity payable under this subsection to the widow or widower of a former employee may not exceed the difference between-- 7,a7 the annuity which would otherwise be payable to such widow or widower under this subsection1 and 7,b7 the amount of the survivor annuity payable to any former spouse of such former employee under subsection 7h7 of this section4 4 7#b7 ,technical and conforming amendments ,section #hcci7;j7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#c77;,a77ii71 by striking and 7h7 and inserting 7h71 and 7l72 and 7,b7 in paragraph 7#d71 by striking and 7h7 and inserting 7h71 and 7l74 7c7 ,benefits for former spouse ,section #hcda7;h7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by adding after the first sentence ,subject to paragraphs 7#b7 through 7#e7 of this subsection1 a former spouse of a former employee who dies after having separated from the service with title to a deferred annuity under section #hcch7;a7 but before having established a valid claim for annuity is entitled to a survivor annuity under this subsection1 if and to the extent expressly provided for in an election under section #hcci7;j77#c7 of this title1 or in the terms of any decree of divorce or annulment or any court order or court-approved property settlement agreement incident to such decree42 and 7#b7 in paragraph 7#b7-- 7,a7 in subparagraph 7,a77ii71 by striking or annuitant1 and inserting annuitant1 or former employee2 and 7,b7 in subparagraph 7,b7-- 7i7 in clause 7ii71 by striking or at the end2 7ii7 in clause 7iii71 by striking the period and inserting 2 or2 and 7iii7 by adding at the end the following3 7iv7 under subparagraph 7,a7 of subsection 7l7 of this section in the case of a widow or widower1 if the deceased was a former employee described in the first sentence of such subsection4 4 7d7 ,protection of survivor benefit rights ,section #hcci7;j77#c7 of title #e1 ,united ,states ,code1 is amended by inserting at the end the following3 ,the ,office shall provide by regulation for the application of this subsection to the widow1 widower1 or surviving former spouse of a former employee who dies after having separated from the service with title to a deferred annuity under section #hcch7;a7 but before having established a valid claim for annuity44 7e7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act and shall apply only in the case of a former employee who dies on or after such date4 #ejg4 ,court orders relating to ,federal retirement benefits for former spouses of federal employees 7a7 ,civil service retirement system ,section #hcde7;j7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraph 7#c7 as paragraph 7#d72 and 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 7,a7 ,a court decree1 court order1 property settlement1 or similar process referred to under paragraph 7#a77;,a7 shall be treated as meeting the requirements of that paragraph if it requires that payment of benefits be made to the former spouse of the employee1 ,member1 or annuitant-- 7i7 in the case of any payment before the employee1 ,member1 or annuitant has separated from service1 on or after the date on which the employee1 ,member1 or annuitant attains 7or would have attained7 the earliest retirement age1 7ii7 as if the employee1 ,member1 or annuitant had retired on the date on which such payment is to begin under such order 7but taking into account only the present value of the benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement71 and 7iii7 in any form in which such benefits may be paid under this chapter to the employee1 ,member1 or annuitant 7other than in the form of a joint and survivor annuity with respect to the former spouse and his or her subsequent spouse74 ,for purposes of clause 7ii71 the interest rate assumption used in determining the present value shall be the interest rate specified under this subchapter or1 if no rate is specified1 #e percent4 7,b7 ,in this paragraph1 the term earliest retirement age means the earlier of-- 7i7 the date on which the employee1 ,member1 or annuitant is entitled to a distribution under this subchapter1 or 7ii7 the later of-- 7,i7 the date the employee1 ,member1 or annuitant attains age #ej1 or 7,,ii7 the earliest date on which the employee1 ,member1 or annuitant could begin receiving benefits under this chapter if the employee1 ,member1 or annuitant separated from service4 4 7b7 ,federal employees retirement system ,section #hdfg of title #e1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7c7 as subsection 7d72 and 7#b7 by inserting after subsection 7b7 the following3 7c7 7#a7 ,a court decree1 court order1 property settlement1 or similar process referred to under subsection 7a77#a7 shall be treated as meeting the requirements of that subsection if it requires that payment of benefits be made to the former spouse of the employee1 ,member1 or annuitant-- 7,a7 in the case of any payment before the employee1 ,member1 or annuitant has separated from service1 on or after the date on which the employee1 ,member1 or annuitant attains 7or would have attained7 the earliest retirement age1 7,b7 as if the employee1 ,member1 or annuitant had retired on the date on which such payment is to begin under such order 7but taking into account only the present value of the benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement71 and 7,c7 in any form in which such benefits may be paid under this chapter to the employee1 ,member1 or annuitant 7other than in the form of a joint and survivor annuity with respect to the alternate payee and his or her subsequent spouse74 ,for purposes of subparagraph 7,b71 the interest rate assumption used in determining the present value shall be the interest rate specified under this chapter or1 if no rate is specified1 #e percent4 7#b7 ,in this subsection1 the term earliest retirement age means the earlier of-- 7,a7 the date on which the employee1 ,member1 or annuitant is entitled to a distribution under this chapter1 or 7,b7 the later of-- 7i7 the date the employee1 ,member1 or annuitant attains age #ej1 or 7ii7 the earliest date on which the employee1 ,member1 or annuitant could begin receiving benefits under this chapter if the employee1 ,member1 or annuitant separated from service4 4 7c7 ,effective date and application ,the amendments made by this section shall take effect on the date of the enactment of this ,act and apply to any court decree1 court order1 property settlement1 or similar process issued or approved before1 on1 or after that date4 ,,vi ,office of ,participant and ,plan ,sponsor ,advocate #fja4 ,office of ,participant and ,plan ,sponsor ,advocate 7a7 ,in general ,section #ghjc is amended by adding at the end the following3 7e7 ,participant and plan sponsor advocate 7#a7 ,in general ,there is established in the ,internal ,revenue ,service an office to be known as the ,office of the ,participant and ,plan ,sponsor ,advocate4 7#b7 ,participant and ,plan ,sponsor ,advocate 7,a7 ,in general ,the ,office of the ,participant and ,plan ,sponsor ,advocate shall be under the supervision and direction of an official to be known as the ,participant and ,plan ,sponsor ,advocate4 ,the ,commissioner shall select the ,participant and ,plan ,sponsor ,advocate without regard to the provisions of title #e1 ,united ,states ,code1 relating to appointments in the competitive service or ,senior ,executive ,service4 7,b7 ,duties ,the ,participant and ,plan ,sponsor ,advocate shall-- 7i7 act as a liaison between the ,internal ,revenue ,service1 sponsors of sponsors of qualified retirement plans 7as defined in section #digd7;c771 and participants in such plans2 7ii7 advocate for the full attainment of the rights of such plan sponsors and participants2 7iii7 assist pension plan sponsors and participants in resolving disputes with the ,internal ,revenue ,service2 7iv7 identify areas in which participants and plan sponsors have persistent problems in dealings with the ,internal ,revenue ,service2 7v7 to the extent possible1 propose changes in the administrative practices of the ,internal ,revenue ,service to mitigate problems2 7vi7 identify potential legislative changes which may be appropriate to mitigate problems2 and 7vii7 refer instances of fraud1 waste1 and abuse1 and violations of law to the ,office of the ,treasury ,inspector ,general for ,tax ,administration4 7,c7 ,removal ,if the ,participant and ,plan ,sponsor ,advocate is removed from office or is transferred to another position or location within the ,internal ,revenue ,service1 the ,commissioner shall communicate in writing the reasons for any such removal or transfer to ,congress not less than #cj days before the removal or transfer4 ,nothing in this paragraph shall prohibit a personnel action otherwise authorized by law1 other than transfer or removal4 7,d7 ,compensation ,the annual rate of basic pay for the ,participant and ,plan ,sponsor ,advocate shall be the same rate as the highest rate of basic pay established for the ,senior ,executive ,service under section #echb of title #e1 ,united ,states ,code1 or1 if the ,commissioner so determines1 at a rate fixed under section #iejc of such title4 7#c7 ,annual report 7,a7 ,in general ,not later than ,december #ca of each calendar year1 the ,participant and ,plan ,sponsor ,advocate shall report to the ,health1 ,education1 ,labor1 and ,pensions ,committee of the ,senate1 the ,committee on ,finance of the ,senate1 the ,committee on ,education and the ,workforce of the ,house of ,representatives1 and the ,committee on ,ways and ,means of the ,house of ,representatives on the activities of the ,office of the ,participant and ,plan ,sponsor ,advocate during the fiscal year ending during such calendar year4 7,b7 ,content ,each report submitted under subparagraph 7,a7 shall-- 7i7 summarize the assistance requests received from participants and plan sponsors and describe the activities1 and evaluate the effectiveness1 of the ,participant and ,plan ,sponsor ,advocate during the preceding year2 7ii7 identify significant problems the ,participant and ,plan ,sponsor ,advocate has identified2 7iii7 include specific legislative and regulatory changes to address the problems2 and 7iv7 identify any actions taken to correct problems identified in any previous report4 7,c7 ,concurrent submission ,the ,participant and ,plan ,sponsor ,advocate shall submit a copy of each report to the ,secretary of the ,treasury1 the ,commissioner of ,internal ,revenue1 and any other appropriate official at the same time such report is submitted to the committees of ,congress under subparagraph 7,a74 4 7b7 ,effective date ,the amendment made by this section shall take effect on ,january #a1 #bjad4