,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #echa  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjad ,mr4 
,tib]i 7= himself & ,mr4 ,neal7         
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! nondiscrim9ation     
provisions ( ! ,int]nal ,rev5ue ,code ( 
#aihf to protect old]1 long] s]vice     
p>ticipants4  #a4 ,protect+ old]1 long] 
s]vice p>ticipants  7a7 ,9 g5]al        
,p>agraph 7#d7 ( section #dja7;a7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#d7                 
,nondiscrim9ation  7,a7 ,9 g5]al ,a tru/
 %all n con/itute a qualifi$ tru/ "u ?is
 section unless ! contributions or      
b5efits provid$ "u ! plan d n           
discrim9ate 9 favor ( highly comp5sat$  
employees 7)9 ! mean+ ( section         
#dad7q774 ,= purposes ( ?is p>agraph1   
!re %all be exclud$ f consid]ation      
employees describ$ 9 section            
#daj7;b77#c7 7,a7 & 7,c74  7,b7         
,protection ( old]1 long] s]vice        

p>ticipants  7i7  7,i7 ,a def9$ b5efit  
plan describ$ 9 subclause 7,,ii7 %all n 
fail to satisfy ?is p>agraph ) respect  
to plan b5efits1 rights1 or features by 
reason (--  7aa7 ! composition ( ! clos$
 class ( p>ticipants describ$ 9         
subclause 7,,ii71 or  7bb7 ! b5efits1   
rights1 or features provid$ to su* clos$
 class4  7,,ii7 ,a plan is describ$ 9   
?is subclause if--  7aa7 ! plan provides
 b5efits1 rights1 or features to a clos$
 class ( p>ticipants1  7bb7 su* clos$   
class & su* b5efits1 rights1 & features 
satisfy ! requirem5ts ( subp>agraph 7,a7
 7)\t reg>d to ?is clause7 z ( ! date t 
! class 0 clos$1 &  7cc7 aft] ! date z (
 :i* ! class 0 clos$1 any plan am5dm5ts 
t modify ! clos$ class or ! b5efits1    
rights1 & features provid$ to su* clos$ 
class satisfy subp>agraph 7,a7 7)\t     
reg>d to ?is clause74  ,if a plan       
am5dm5t causes a plan to cease to be    
describ$ 9 ?is subclause 7,,ii7 by      
reason ( subclause 7,,ii77cc71 ! plan is
 nev]!less describ$ 9 ?is subclause     

7,,ii7 if su* plan satisfies ?is        
subclause 7,,ii7 7)\t reg>d to subclause
 7,,ii77cc77 z ( ! effective date ( su* 
am5dm5t4 ,9 su* cases1 subclause        
7,,ii77bb7 & 7cc7 %all subsequ5tly be   
appli$ by ref]5ce to ! effective date ( 
! plan am5dm5t1 r ?an by ref]5ce to !   
orig9al date t ! class 0 clos$4  7ii7   
7,i7 ,a def9$ contribution plan describ$
 9 subclause 7,,ii7 %all be p]mitt$ to  
be te/$ on a b5efits basis4  7,,ii7 ,a  
def9$ contribution plan is describ$ 9   
?is subclause if--  7aa7 ! plan provides
 make-:ole contributions to a clos$     
class ( p>ticipants ^: def9$ b5efit plan
 accruals h be5 r$uc$ or elim9at$1  7bb7
 su* clos$ class ( p>ticipants satisfies
 section #daj7;b77#b77;,a77i7 z ( ! date
 t ! class ( p>ticipants 0 clos$1 &     
7cc7 aft] ! date z ( :i* ! class 0      
clos$1 any plan am5dm5ts t modify !     
clos$ class or ! allocations1 b5efits1  
rights1 & features provid$ to su* clos$ 
class satisfy subp>agraph 7,a7 7)\t     
reg>d to ?is clause74  ,if a plan       

am5dm5t causes a plan to cease to be    
describ$ 9 ?is subclause 7,,ii7 by      
reason ( subclause 7,,ii77cc71 ! plan is
 nev]!less describ$ 9 ?is subclause     
7,,ii7 if su* plan satisfies ?is        
subclause 7,,ii7 7)\t reg>d to subclause
 7,,ii77cc77 z ( ! effective date ( su* 
am5dm5t4 ,9 su* cases1 subclause        
7,,ii77bb7 & 7cc7 %all subsequ5tly be   
appli$ by ref]5ce to ! effective date ( 
! plan am5dm5t1 r ?an by ref]5ce to !   
orig9al date t ! class 0 clos$4  7,,iii7
 ,9 addition to o!r te/+ me?odologies   
o!rwise applicable1 = purposes ( det]m9+
 compliance ) ?is p>agraph & ) section  
#daj7;b7 ( ! portion ( "o or m def9$    
contribution plans describ$ 9 subclause 
7,,ii7 t provide make-:ole              
contributions1 su* portion ( su* plans  
may be aggregat$ & te/$ on a b5efits    
basis ) ! portion ( "o or m def9$       
contribution plans t--  7aa7 provides   
mat*+ contributions 7z def9$ 9          
subsection 7m77#d77;,a771 or  7bb7      
consi/s ( an employee /ock own]%ip plan 

)9 ! mean+ ( section #dige7;e77#g7 or a 
tax cr$it employee /ock own]%ip plan )9 
! mean+ ( section #dji7;a74  ,= su*     
purposes1 mat*+ contributions %all be   
treat$ 9 ! same mann] z employ]         
contributions t are made )\t reg>d to   
:e!r an employee makes an elective      
contribution or employee contribution1  
includ+ = purposes ( apply+ ! rules (   
subsection 7l74  7,c7 ,def9itions ,=    
purposes ( ?is p>agraph--  7i7          
,make-:ole contributions ,! t]m         
make-:ole contributions means           
allocations = ea* employee 9 ! class t  
are reasonably calculat$1 9 a consi/5t  
mann]1 to replace "s or all ( !         
retirem5t b5efits t ! employee w\ld h   
receiv$ "u ! def9$ b5efit plan & any o!r
 plan or arrangem5t if ! employee _h    
cont9u$ to b5efit at ! same level "u su*
 def9$ b5efit plan & su* o!r plan or    
arrangem5t4  7ii7 ,ref]5ces to clos$    
class ( p>ticipants ,ref]5ces to a clos$
 class ( p>ticipants & simil> ref]5ces  
to a clos$ class %all include           

arrangem5ts "u :i* "o or m classes (    
p>ticipants are clos$4  7,d7 ,protect+  
gr&fa!r$ p>ticipants 9 def9$ b5efit     
plans  7i7 ,"o or m def9$ b5efit plans  
describ$ 9 clause 7ii7 %all be p]mitt$  
to be te/$ on a b5efits basis ) "o or m 
def9$ contribution plans4  7ii7 ,a def9$
 b5efit plan is describ$ 9 ?is clause   
if--  7,i7 ! plan provides b5efits to a 
clos$ class ( p>ticipants1  7,,ii7 !    
plan & su* b5efits satisfy ! requirem5ts
 ( subp>agraph 7,a7 7)\t reg>d to ?is   
subp>agraph7 z ( ! date ! class 0 clos$1
 &  7,,iii7 aft] ! date z ( :i* ! class 
0 clos$1 any plan am5dm5ts t modify !   
clos$ class or ! b5efits provid$ to su* 
clos$ class satisfy subp>agraph 7,a7    
7)\t reg>d to ?is subp>agraph74  ,if a  
plan am5dm5t causes a plan to cease to  
be describ$ 9 ?is clause 7ii7 by reason 
( subclause 7,,iii71 ! plan is nev]!less
 describ$ 9 ?is clause 7ii7 if su* plan 
satisfies ?is clause 7ii7 7)\t reg>d to 
subclause 7,,iii77 z ( ! effective date 
( su* am5dm5t4 ,9 su* cases1 subclauses 

7,,ii7 & 7,,iii7 %all subsequ5tly be    
appli$ by ref]5ce to ! effective date ( 
! plan am5dm5t1 r ?an by ref]5ce to !   
orig9al date t ! class 0 clos$4  7iii7  
,9 addition to o!r te/+ me?odologies    
o!rwise applicable1 = purposes ( det]m9+
 compliance ) ?is p>agraph & ) section  
#daj7;b7 ( "o or m def9$ b5efit plans   
describ$ 9 clause 7ii71 su* plans may be
 aggregat$ & te/$ on a b5efits basis ) !
 portion ( "o or m def9$ contribution   
plans t--  7,i7 provides mat*+          
contributions 7z def9$ 9 subsection     
7m77#d77;,a771 or  7,,ii7 consi/s ( an  
employee /ock own]%ip plan )9 ! mean+ ( 
section #dige7;e77#g7 or a tax cr$it    
employee /ock own]%ip plan )9 ! mean+ ( 
section #dji7;a74  ,= su* purposes1     
mat*+ contributions %all be treat$ 9 !  
same mann] z employ] contributions t are
 made )\t reg>d to :e!r an employee     
makes an elective contribution or       
employee contribution1 includ+ =        
purposes ( apply+ ! rules ( subsection  
7l74  7,e7 ,rules ,! ,secret>y may      

prescribe rules design$ to prev5t abuse 
( ! plan designs o!rwise p]mitt$ by     
reason ( subp>agraphs 7,b7 & 7,d74 ,su* 
rules %all be direct$ t[>ds abuses "u   
:i* ! def9$ b5efit plan 0 e/abli%$ )9 a 
specifi$ p]iod prior to ! date t--  7i7 
! class ( p>ticipants describ$ 9        
subp>agraphs 7,b77i77,,ii77aa71         
7,b77ii77,,ii77aa71 & 7,d77ii77,i7 is   
clos$1 or  7ii7 ! def9$ b5efit plan     
accruals h be5 r$uc$ or elim9at$1 9 !   
case ( ! make-:ole contributions        
describ$ 9 subp>agraph 7,c74  7,f7      
,transition rules ,)9 "o ye> aft] ! date
 ( enactm5t ( ! ,retirem5t ,plan        
,simplification & ,enhancem5t ,act (    
#bjac1 ! ,secret>y %all prescribe rules 
t facilitate ! use ( ! provisions (     
subp>agraphs 7,b7 & 7,d7 )\t reg>d to-- 
7i7 :e!r ! clos+ ( ! class ( p>ticipants
 ref]r$ to 9 su* subp>agraphs occurr$   
be=e or aft] su* date ( enactm5t1 or    
7ii7 plan am5dm5ts t 7 adopt$ or        
effective be=e su* date ( enactm5t & t  
w\ld n h be5 necess>y if subp>agraphs   

7,b7 & 7,d7 _h be5 9 effect4  4  7b7    
,p>ticipation requirem5ts ,p>agraph     
7#bf7 ( section #dja7;a7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,i7
 ,protect$ p>ticipants ,a plan describ$ 
9 ?is subp>agraph %all be deem$ to      
satisfy ! requirem5ts ( subp>agraph     
7,a74 ,a plan is describ$ 9 ?is p>agraph
 if--  7i7 ! plan is am5d$ to--  7,i7   
cease all b5efit accruals1 or  7,,ii7   
provide future b5efit accruals only to a
 clos$ class ( p>ticipants1 &  7ii7 !   
plan satisfies subp>agraph 7,a7 7)\t    
reg>d to ?is subp>agraph7 z ( !         
effective date ( ! am5dm5t4  ,!         
,secret>y may prescribe su* rules z are 
necess>y or appropriate to fulfill !    
purposes ( ?is subp>agraph1 includ+     
prev5tion ( abuse ( ?is subp>agraph 9 ! 
case ( plans e/abli%$ )9 a specific     
p]iod prior to ! effective date ( !     
am5dm5t4  4  7c7 ,effective date ,!     
am5dm5ts made by ?is section %all take  
effect on ! date ( ! enactm5t ( ?is     

,act1 )\t reg>d to :e!r any plan        
modifications ref]5c$ 9 su* am5dm5ts are
 adopt$ or effective be=e1 on1 or aft]  
su* date ( enactm5t4