,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dcgf  ,,in ,,the ,,house ,,of  
,,representatives  ,april #b1 #bjad ,mr4
 ,braley of ,iowa introduced the        
following bill2 which was referred to   
the ,committee on ,ways and ,means1 and 
in addition to the ,committee on        
,education and the ,workforce1 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     
amend the ,internal ,revenue ,code of   
#aihf to modify safe harbor requirements
 applicable to automatic contribution   
arrangements1 and for other purposes4   
#a4 ,short title ,this ,act may be cited
 as the ,retirement ,security ,act of   
#bjad4  #b4 ,elimination of disincentive
 to pooling for multiple employer plans 
7a7 ,in general ,not later than one year
 after the date of the enactment of this
 ,act1 the ,secretary of the ,treasury  
shall prescribe final regulations under 

which a plan described in section       
#dac7;c7 of the ,internal ,revenue ,code
 of #aihf may be treated as satisfying  
the qualification requirements of       
section #dja7;a7 of such ,code despite  
the violation of such requirements with 
respect to one or more participating    
employers4 ,such rules may require that 
the portion of the plan attributable to 
such participating employers be spun off
 to plans maintained by such employers4 
#c4 ,modification of ,,erisa rules      
relating to multiple employer defined   
contribution plans  7a7 ,in general     
7#a7 ,requirement of common interest    
,section #c7b7 of the ,employee         
,retirement ,income ,security ,act of   
#aigd is amended by adding at the end   
the following3  7,c7  7i7 ,a qualified  
multiple employer plan shall not fail to
 be treated as an employee pension      
benefit plan or pension plan solely     
because the employers sponsoring the    
plan share no common interest4  7ii7    
,for purposes of this subparagraph1 the 

term qualified multiple employer plan   
means a plan described in section       
#dac7;c7 of the ,internal ,revenue ,code
 of #aihf which--  7,i7 is an individual
 account plan with respect to which the 
requirements of clauses 7iii71 7iv71 and
 7v7 are met1 and  7,,ii7 includes in   
its annual report required to be filed  
under section #ajd7;a7 the name and     
identifying information of each         
participating employer4  7iii7 ,the     
requirements of this clause are met if1 
under the plan1 each participating      
employer retains fiduciary              
responsibility for--  7,i7 the selection
 and monitoring of the named fiduciary1 
and  7,,ii7 the investment and          
management of the portion of the plan's 
assets attributable to employees of the 
employer to the extent not otherwise    
delegated to another fiduciary4  7iv7   
,the requirements of this clause are met
 if1 under the plan1 a participating    
employer is not subject to unreasonable 
restrictions1 fees1 or penalties by     

reason of ceasing participation in1 or  
otherwise transferring assets from1 the 
plan4  7v7 ,the requirements of this    
clause are met if each participating    
employer in the plan is an eligible     
employer as defined in section          
#djh7p77#b77;,c77i7 of the ,internal    
,revenue ,code of #aihf1 applied--  7,i7
 by substituting #ejj for #ajj in       
subclause 7,i7 thereof1  7,,ii7 by      
substituting #e for #b each place it    
appears in subclause 7,,ii7 thereof1 and
  7,,iii7 without regard to the last    
sentence of subclause 7,,ii7 thereof4  4
  7#b7 ,simplified reporting for small  
multiple employer plans ,section        
#ajd7;a7 of such ,act 7#bi ,u4,s4,c4    
#ajbd7;a77 is amended by adding at the  
end the following3  7#g7  7,a7 ,in the  
case of any eligible small multiple     
employer plan1 the ,secretary may by    
regulation--  7i7 prescribe simplified  
summary plan descriptions1 annual       
reports1 and pension benefit statements 
for purposes of section #ajb1 #ajc1 or  

#aje1 respectively1 and  7ii7 waive the 
requirement under section #ajc7;a77#c7  
to engage an independent qualified      
public accountant in cases where the    
,secretary determines it appropriate4   
7,b7 ,for purposes of this paragraph1   
the term eligible small multiple        
employer plan means1 with respect to any
 plan year--  7i7 a qualified multiple  
employer plan1 as defined in section    
#c7b77;,c77ii71 or  7ii7 any other plan 
described in section #dac7;c7 of the    
,internal ,revenue ,code of #aihf that  
satisfies the requirements of clause 7v7
 of section #c7b77;,c74  4  7b7         
,effective date ,the amendments made by 
this section shall apply to years       
beginning after ,december #ca1 #bjad4   
#d4 ,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--  7,i7 #ajj       
percent of the elective contributions of
 the employee to the extent that such   
contributions do not exceed #a percent  
of compensation1  7,,ii7 #ej percent of 
so much of such contributions as exceed 
#a percent but do not exceed #f percent 
of compensation1 plus  7,,iii7 #be      
percent of so much of such contributions
 as exceed #f 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 the ,internal ,revenue  
,code of #aihf is amended by            
redesignating paragraph 7#ac7 as        
paragraph 7#ad7 and by inserting after  
paragraph 7#ab7 the following new       
paragraph3  7#ac7 ,alternative method   
for secure deferral arrangements ,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 ,effective date   
,the amendments made by this section    
shall apply to plan years beginning     
after ,december #ca1 #bjad4  #e4 ,credit
 for employers with respect to modified 
safe harbor requirements  7a7 ,in       
general ,subpart ,d of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #de,s4 ,credit  
for small employers with respect to     
modified safe harbor requirements for   
automatic contribution arrangements  7a7

 ,general rule ,for purposes of section 
#ch1 in the case of a small employer1   
the safe harbor adoption credit         
determined under this section for any   
taxable year is the amount equal to the 
total of the employer's matching        
contributions under section             
#dja7k77#ad77;,d7 during the taxable    
year on behalf of employees who are not 
highly compensated employees1 subject to
 the limitations of subsection 7b74  7b7
 ,limitations  7#a7 ,limitation with    
respect to compensation ,the credit     
determined under subsection 7a7 with    
respect to contributions made on behalf 
of an employee who is not a highly      
compensated employee shall not exceed #b
 percent of the compensation of such    
employee for the taxable year4  7#b7    
,limitation with respect to years of    
participation ,credit shall be          
determined under subsection 7a7 with    
respect to contributions made on behalf 
of an employee who is not a highly      
compensated employee only during the    

first #e years such employee            
participates in the qualified automatic 
contribution arrangement4  7c7          
,definitions  7#a7 ,in general ,any term
 used in this section which is also used
 in section #dja7k77#ad7 shall have the 
same meaning as when used in such       
section4  7#b7 ,small employer ,the term
 small employer means an eligible       
employer 7as defined in section         
#djh7p77#b77;,c77i774  7d7 ,denial of   
double benefit ,no deduction shall be   
allowable under this title for any      
contribution with respect to which a    
credit is allowed under this section4  4
  7b7 ,credit ,to be part of general    
business credit ,subsection 7b7 of      
section #ch of the ,internal ,revenue   
,code of #aihf is amended--  7#a7 by    
striking plus at the end of paragraph   
7#ce71  7#b7 by striking the period at  
the end of paragraph 7#cf7 and inserting
 1 plus1 and  7#c7 by adding at the end 
the following new paragraph3  7#cg7 the 
safe harbor adoption credit determined  

under section #de,s4  4  7c7 ,clerical  
amendment ,the table of sections for    
subpart ,d of part ,,iv of subchapter ,a
 of chapter #a of the ,internal ,revenue
 ,code of #aihf is amended by adding    
after the item relating to section #de,r
 the following new item3  ,sec4 #de,s4  
,credit for small employers with respect
 to modified safe harbor requirements   
for automatic contribution arrangements4
  4  7d7 ,effective date ,the amendments
 made by this section shall apply to    
taxable years that include any portion  
of a plan year beginning after ,december
 #ca1 #bjad4  #f4 ,modification of      
regulations ,the ,secretary of the      
,treasury shall promulgate regulations  
or other guidance that--  7#a7 simplify 
and clarify the rules regarding the     
timing of participant notices required  
under section #dja7k77#ac77;,e7 of the  
,internal ,revenue ,code of #aihf1 with 
specific application to--  7,a7 plans   
that allow employees to be eligible for 
participation immediately upon beginning

 employment1 and  7,b7 employers with   
multiple payroll and administrative     
systems1 and  7#b7 simplify and clarify 
the automatic escalation rules under    
sections #dja7k77#ac77;,c77iii7 and     
#dja7k77#ad77;,c7 of the ,internal      
,revenue ,code of #aihf in the context  
of employers with multiple payroll and  
administrative systems4  ,such          
regulations or guidance shall address   
the particular case of employees within 
the same plan who are subject to        
different notice timing and different   
percentage requirements1 and provide    
assistance for plan sponsors in managing
 such cases4  #g4 ,opportunity to claim 
the saver's credit on ,form #ajdj;,,ez  
,the ,secretary of the ,treasury shall  
modify the forms for the return of tax  
of individuals in order to allow        
individuals claiming the credit under   
section #be;,b of the ,internal ,revenue
 ,code of #aihf to file 7and claim such 
credit on7 ,form #ajdj;,,ez4