,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #echa  ,,in ,,the ,,house ,,of  
,,representatives  ,july #ca1 #bjad ,mr4
 ,tiberi 7for himself and ,mr4 ,neal7   
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
nondiscrimination provisions of the     
,internal ,revenue ,code of #aihf to    
protect older1 longer service           
participants4  #a4 ,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 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  7ii7  7,i7 ,a defined         
contribution plan described in subclause
 7,,ii7 shall be 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 subparagraphs 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