,,ii #aacth ,,congress #ast ,session ,s4 #abgj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #i1 #bjac ,mr4 ,hatch introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for reform of public and private pension plans1 and for other purposes4 #a4 ,short title2 amendment of #aihf ,code2 table of contents 7a7 ,short title ,this ,act may be cited as the ,secure ,annuities for ,employee ,retirement ,act of #bjac or the ,,safe ,retirement ,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 is as follows3 ,sec4 #a4 ,short title2 amendment of #aihf ,code2 table of contents4 ,,title ,i--,public pension reform ,sec4 #aja4 ,annuity accumulation retirement plans of employees of ,state and local governments4 ,sec4 #ajb4 ,study of ,federal pension systems4 ,,title ,,ii--,private pension reform ,subtitle ,a--,enhanced pension plan coverage ,sec4 #bja4 ,starter #dja7k7 plans for employers with no retirement plan4 ,sec4 #bjb4 ,increase in credit limitation for small employer pension plan startup costs4 ,sec4 #bjc4 ,employers allowed to replace simple retirement accounts with safe harbor #dja7k7 plans during a year4 ,sec4 #bjd4 ,modification of automatic enrollment safe harbor4 ,sec4 #bje4 ,plan adopted by filing due date for year may be treated as in effect as of close of year4 ,sec4 #bjf4 ,rules relating to election of safe harbor #dja7k7 status4 ,sec4 #bjg4 ,modifications of rules relating to multiple employer defined contribution plans4 ,subtitle ,b--,pension plan and retirement savings simplification ,sec4 #baa4 ,modifications of deadlines for adopting pension plan amendments4 ,sec4 #bab4 ,termination of application of top-heavy plan rules4 ,sec4 #bac4 ,amendments to safe harbor #dja7k7 plans during plan year4 ,sec4 #bad4 ,modification of rules relating to hardship withdrawals from cash or deferred arrangements4 ,sec4 #bae4 ,individual may roll over insurance contract into individual retirement account4 ,sec4 #baf4 ,forfeitures allocated to participant's account may be treated as employer matching or nonelective contributions4 ,sec4 #bag4 ,time for providing explanation of qualified preretirement survivor annuity4 ,sec4 #bah4 ,modifications of additional participation requirements for defined benefit plans4 ,sec4 #bai4 ,treatment of custodial accounts on termination of section #djc7;b7 plans4 ,sec4 #bbj4 ,secure deferral arrangements4 ,sec4 #bba4 ,portability of lifetime income options4 ,sec4 #bbb4 ,consolidation of defined contribution plan notices4 ,sec4 #bbc4 ,performance benchmarks for asset allocation funds4 ,subtitle ,c--,longevity reforms ,sec4 #bca4 ,modification of required minimum distribution rules where portion of benefit of defined contribution plan is annuitized4 ,sec4 #bcb4 ,updating of mortality tables for minimum required distributions4 ,sec4 #bcc4 ,minimum required distributions may be rolled over into ,roth ,i,r,as4 ,sec4 #bcd4 ,transfer of minimum survivor annuity requirements from plan sponsors to annuity providers4 ,sec4 #bce4 ,expansion of ,employee ,plans ,compliance ,resolution ,system4 ,subtitle ,d--,modifications to the ,employee ,retirement ,income ,security ,act of #aigd ,sec4 #bda4 ,electronic communication of pension plan information4 ,sec4 #bdb4 ,modification of deadlines for summary plan description updates4 ,sec4 #bdc4 ,modification of small plan simplified reporting requirements4 ,sec4 #bdd4 ,fiduciary requirement regarding selection of annuity provider and annuity contract4 ,,title ,,iii--,individual retirement investment advice reform ,sec4 #cja4 ,transfer to ,secretary of the ,treasury of authorities regarding individual retirement plans4 ,i ,public pension reform #aja4 ,annuity accumulation retirement plans of employees of ,state and local governments 7a7 ,in general ,part ,i of subchapter ,d of chapter #a is amended by inserting after subpart ,e the following new subpart3 ,f ,annuity accumulation retirement plans for ,state and local government employees4 ,sec4 #dbj;,a4 ,annuity accumulation retirement plans4 #dbj;,a4 ,annuity accumulation retirement plans 7a7 ,annuity accumulation retirement plans ,for purposes of this subpart-- 7#a7 ,in general ,the term annuity accumulation retirement plan means a ,state or local governmental retirement plan-- 7,a7 which provides for the purchase1 not less frequently than annually1 of a qualified individual deferred fixed income annuity contract for each participant which provides benefits based solely on the contributions by an employer to an annuity provider and the actuarial assumptions specified in the annuity contract1 and 7,b7 which provides that-- 7i7 no contributions may be made under the plan other than contributions described in subsection 7c71 7ii7 contributions pursuant to the plan on behalf of any eligible employee for any plan year1 whether made annually or more frequently1 are required to be paid not later than #ij days after the close of the plan year to an annuity provider to purchase a qualified individual deferred fixed income annuity contract for the employee1 and 7iii7 no benefits are provided by the employer under the plan other than the purchase of qualified individual deferred fixed income annuity contracts for eligible employees4 ,subject to the provisions of subsection 7d77#c71 nothing in subparagraph 7,b77iii7 shall prohibit an employer from establishing or maintaining a defined contribution plan or defined benefit plan or providing any form of employee welfare benefit separately from the plan4 7#b7 ,plan structure ,a plan will not be treated as an annuity accumulation retirement plan unless-- 7,a7 benefits under the plan are limited to a monthly payment for the life of the participant1 commencing at the applicable age under subsection 7b77#a77;,b71 as provided under the qualified individual deferred fixed income annuity contract purchased with the employer contributions described in subsection 7c7 and issued to the participant1 and 7,b7 the plan does not accumulate assets in trust or otherwise1 and the employer has no ownership interest in any qualified individual deferred fixed income annuity contract issued to a participant4 7#c7 ,requirements for annuity contract purchasing process 7,a7 ,in general ,a plan will not be treated as an annuity accumulation retirement plan unless the plan provides that individual deferred fixed income annuity contracts will be purchased through a process by which1 with respect to each purchase under paragraph 7#a77;,a71 the plan administrator-- 7i7 obtains competitive bids pursuant to a formal1 public procurement process authorized under ,state law which requires institutional pricing on a group contract basis from multiple annuity providers verified by the applicable ,state insurance regulator as properly licensed to meet the specifications in the procurement request1 7ii7 allocates its purchases of individual deferred fixed income annuity contracts among the providers selected under clause 7i71 with the largest allocation 7not to exceed #ge percent of the aggregate purchase amount of all such contracts7 purchased from the annuity provider submitting the superior bid1 7iii7 ensures1 to the maximum extent possible1 that each employee's entire interest under an individual deferred fixed income annuity contract would be fully guaranteed by a ,state guaranty association under applicable ,state law1 regulations1 and industry standards in effect as of the date of issuance of the contract1 and 7iv7 ensures1 to the maximum extent possible1 that each employee's entire interest under all contracts provided under the plan by any single annuity provider 7and any related parties1 within the meaning of such term as applied by the ,state guaranty association7 does not exceed the maximum amount which would be covered by a ,state guaranty association described in clause 7iii7 in case of the insolvency of the provider4 7,b7 ,prohibition on providing benefit in exchange for selection ,an annuity provider shall not be treated as meeting the competitive bid requirements of subparagraph 7,a77i7 if such provider1 or any related party to 7within the meaning of such term as applied by the ,state guaranty association7 or agent of such provider1 on their own or on another's behalf1 provides anything of value to any employee of a ,state or local government entity1 or agency or instrumentality thereof1 or to a plan administrator1 in connection with the bidding process or the annuity purchase process described in subparagraph 7,a74 7,c7 ,compliance safe harbor ,a plan shall be deemed to meet the requirements of subparagraph 7,a7 if the plan administrator obtains a determination in writing from the ,office of ,domestic ,finance1 ,department of the ,treasury1 that such plan meets such requirements4 ,authority to issue such a determination shall not be delegated to any entity outside of the ,office of ,domestic ,finance4 7#d7 ,general exemption from pension plan requirements ,notwithstanding any other provision of this subchapter-- 7,a7 except as provided in this section1 no requirement of this subchapter otherwise applicable to a ,state or local governmental retirement plan shall apply to an annuity accumulation retirement plan1 and 7,b7 for purposes of this title other than any such requirements1 an annuity accumulation retirement plan shall be treated as a defined benefit plan which meets the requirements of section #dja7;a74 7b7 ,qualified individual deferred fixed income annuity contract ,for purposes of this subpart1 the term qualified individual deferred fixed income annuity contract means1 with respect to an employee for any plan year1 an individual annuity contract issued by an annuity provider-- 7#a7 under the terms of which-- 7,a7 the monthly annuity payments during the period described in subparagraph 7,b7 are in equal installments and are fixed at the time of purchase1 and 7,b7 except as provided in subsection 7e71 the entire interest of the employee in the contract will be distributed in the form of monthly annuity payments under a single life annuity1 beginning on the later of-- 7i7 the date the employee attains age-- 7,i7 #eg1 in the case of a public safety employee1 and 7,,ii7 #fg1 in the case of any other employee1 or 7ii7 in the case of a contract purchased after the date the employee attains such age1 the #ast day of the #ast calendar year beginning after the calendar year in which such contract was purchased1 7#b7 the purchase price of which is equal to the contributions described in subsection 7c7 with respect to the employee for the plan year in which it is purchased1 7#c7 under which the employee's rights are nonforfeitable1 7#d7 under which no loan may be made with respect to any portion of any interest in the contract1 and 7#e7 except as provided in subsection 7e71 no portion of any interest in the contract may be assigned1 alienated1 or pledged as collateral4 7c7 ,contribution requirements and limitations ,for purposes of subsection 7a77#a77;,b7-- 7#a7 ,in general ,the plan must provide that the only contributions which may be made pursuant to the plan for any plan year are nonelective contributions 7within the meaning of section #dja7k77#aa77;,b77ii77 made by the employer for the purchase of qualified individual deferred fixed income annuity contracts which are-- 7,a7 made on behalf of each eligible employee for the plan year1 and 7,b7 equal to a percentage of the employee's compensation which 7except as provided in this paragraph7 is determined not later than the start of the plan year4 ,an employer shall not be treated as failing to meet the requirements of this paragraph merely because the plan allows the employer to elect to reduce the percentage under subparagraph 7,b71 or not to make any contributions pursuant to the plan1 for any period for all employees1 and the employer so elects not later than the start of the plan year4 7#b7 ,limits based on compensation 7,a7 ,in general ,the compensation 7as determined for purposes of section #dae7;c77 taken into account under paragraph 7#a77;,b7 with respect to an employee for any year shall not exceed the limitation in effect for such year under section #dja7;a77#ag74 7,b7 ,percentage limitation 7i7 ,in general ,the percentage under paragraph 7#a77;,b7 for any period shall not exceed-- 7,i7 #cj percent in the case of a public safety employee1 or 7,,ii7 #bj percent in the case of any other employee4 7ii7 ,election of higher percentage for employees #ej or older ,a plan may elect for any plan year to provide a higher percentage under paragraph 7#a77;,b7 than that specified under clause 7i7 for all employees who have attained age #ej before the beginning of a plan year1 except that such percentage may not exceed-- 7,i7 #ce percent in the case of a public safety employee who has attained such age1 or 7,,ii7 #be percent in the case of any other employee who has attained such age4 7,c7 ,aggregation rule ,all plans of an employer treated as a single plan for purposes of section #dae shall be treated as a single plan for purposes of this paragraph4 7d7 ,tax treatment of annuity accumulation retirement plans 7#a7 ,taxation of eligible employee ,the amount actually paid to a distributee under a qualified individual deferred fixed income annuity contract shall be taxable to the distributee under section #gb4 7#b7 ,treatment of employer contributions ,contributions made by an employer for the purchase of a qualified individual deferred fixed income annuity contract under an annuity accumulation retirement plan shall be excluded from the gross income of the employee4 7#c7 ,inclusion in income of excess contributions or contributions for participants in another defined benefit plan of an employer 7,a7 ,excess contributions ,except as provided in subparagraph 7,b71 if-- 7i7 contributions are made for any plan year by an employer on behalf of an employee in excess of the limit determined after application of subsection 7c77#b71 the employee shall include in gross income an amount equal to such excess1 or 7ii7 an employee for whom such contributions are made for any plan year accrues benefits 7for any period of service for which such contributions were made7 under any other defined benefit plan of the employer which is not an annuity accumulation retirement plan1 the employee shall include in gross income an amount equal to such contributions4 7,b7 ,exception for premiums refunded ,subparagraph 7,a7 shall not apply with respect to contributions on behalf of an employee for any plan year if1 not later than #f months after the last day of the plan year1 the contributions described in subparagraph 7,a7 used to purchase a qualified individual deferred fixed income annuity contract for the employee are refunded to the employer4 7,c7 ,taxable year of inclusion ,any amount under subparagraph 7,a7 shall be includible in gross income of the employee for the taxable year which includes the date which is #f months after the last day of the plan year4 7,d7 ,investment in the contract ,any amount included in gross income shall not be treated as investment in the contract for purposes of section #gb4 7e7 ,certain judgments and settlements ,paragraphs 7#a77;,b7 and 7#e7 of subsection 7b7 shall not apply to any offset of an employee's benefits payable under an annuity contract-- 7#a7 pursuant to-- 7,a7 the enforcement of a levy under section #fcca or the collection by the ,united ,states of a judgment resulting from an unpaid tax assessment1 or 7,b7 the enforcement of a fine imposed as part of a criminal sentence under subchapter ,c of chapter #bbg of title #ah1 ,united ,states ,code1 or an order of restitution made pursuant to such title1 or 7#b7 to the extent required under any ,state tax1 criminal1 or domestic relations law4 7f7 ,definitions 7#a7 ,state or local governmental retirement plan ,for purposes of this section1 the term ,state or local governmental retirement plan means a governmental plan providing for the deferral of compensation which is established and maintained for its employees by a ,state1 a political subdivision of a ,state1 or an agency or instrumentality of a ,state or a political subdivision of a ,state4 7#b7 ,general definitions ,for purposes of this subchapter-- 7,a7 ,eligible employee ,the term eligible employee means1 with respect to any ,state or local governmental retirement plan1 any officer or employee 7other than a contractor7 eligible to participate in the plan4 7,b7 ,annuity provider ,the term annuity provider means any company which is licensed to do business as a life insurance company under the laws of the ,state in which a qualified individual deferred fixed income annuity contract to which this subchapter applies is to be issued4 7,c7 ,public safety employee ,the term public safety employee means any employee of a ,state or political subdivision of a ,state who provides police protection1 firefighting services1 or emergency medical services for any area within the jurisdiction of such ,state or political subdivision4 4 7b7 ,limitation on #djc7;a7 annuity plans of ,state and local governments 7#a7 ,in general ,subsection 7a7 of section #djc is amended by adding at the end the following new paragraph3 7#f7 ,exclusion of certain ,state and local governmental plans ,this subsection shall not apply in the case of annuity contracts purchased under a ,state or local governmental retirement plan 7as defined in section #dbj;,a7f77 which was established after ,july #h1 #bjac4 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to plans established after ,july #h1 #bjac4 7c7 ,,fica exemption ,paragraph 7#e7 of section #caba7;a7 is amended by striking or at the end of subparagraph 7,h71 by striking the semicolon at the end of subparagraph 7,i7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,j7 under an annuity accumulation retirement plan for the purchase of annuity contracts under section #dbj;,a2 4 7d7 ,inclusion of amount for the purchase of annuity contracts on ,w-#b ,subsection 7a7 of section #fjea is amended by striking and at the end of paragraph 7#ac71 by striking the period at the end of paragraph 7#ad77;,b7 and inserting 1 and1 and by inserting after paragraph 7#ad7 the following new paragraph3 7#ae7 the total amount contributed under an annuity accumulation retirement plan for the purchase of annuity contracts under section #dbj;,a4 4 7e7 ,clerical amendment ,the table of subparts for part ,i of subchapter ,d of chapter #a is amended by inserting after the item relating to subpart ,e the following new item3 ,,subpart ,f--,annuity accumulation retirement plans for ,state and local government employees 4 7f7 ,effective date ,except as provided in subsection 7b71 the amendments made by this section shall apply to years beginning after ,december #ca1 #bjad4 #ajb4 ,study of ,federal pension systems 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study of pension systems established by law for employees of the ,government of the ,united ,states1 including an analysis of-- 7#a7 the benefits provided under such systems1 particularly in comparison to those offered to private employees1 and 7#b7 whether such systems are adequately funded4 7b7 ,report ,the ,comptroller ,general of the ,united ,states shall1 not later than #a year after the date of enactment of this ,act1 report to ,congress the results of the study conducted under subsection 7a71 including any recommendations for legislative or administrative changes to the pension systems considered in the study4 ,,ii ,private pension reform ,a ,enhanced pension plan coverage #bja4 ,starter #dja7k7 plans for employers with no retirement plan 7a7 ,in general ,section #dja7k7 is amended by adding at the end the following new paragraph3 7#ad7 ,starter #dja7k7 deferral-only plans for employers with no retirement plan 7,a7 ,in general ,a starter #dja7k7 deferral-only arrangement maintained by an eligible employer shall be treated as meeting the requirements of paragraph 7#c77;,a77ii74 7,b7 ,starter #dja7k7 deferral-only arrangement ,for purposes of this paragraph1 the term starter #dja7k7 deferral-only arrangement means any cash or deferred arrangement which meets-- 7i7 the automatic deferral requirements of subparagraph 7,c71 7ii7 the contribution limitations of subparagraph 7,d71 and 7iii7 the requirements of subparagraph 7,e7 of paragraph 7#ac74 7,c7 ,automatic deferral 7i7 ,in general ,the requirements of this subparagraph are met if1 under the arrangement1 each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation4 7ii7 ,election out ,the election treated as having been made under clause 7i7 shall cease to apply with respect to any employee if such employee makes an affirmative election-- 7,i7 to not have such contributions made1 or 7,,ii7 to make elective contributions at a level specified in such affirmative election4 7iii7 ,qualified percentage ,for purposes of this subparagraph1 the term qualified percentage means1 with respect to any employee1 any percentage determined under the arrangement if such percentage is applied uniformly and is not less than #c or more than #ae percent4 7,d7 ,contribution limitations 7i7 ,in general ,the requirements of this subparagraph are met if1 under the arrangement-- 7,i7 the only contributions which may be made are elective contributions of employees described in subparagraph 7,c71 and 7,,ii7 the aggregate amount of such elective contributions which may be made with respect to any employee for any calendar year shall not exceed #h1jjj4 7ii7 ,cost-of-living adjustment ,in the case of any calendar year beginning after ,december #ca1 #bjad1 the #h1jjj amount under clause 7i7 shall be adjusted in the same manner as under section #djb7;g77#d71 except that #bjac shall be substituted for #bjje4 7iii7 ,cross reference ,for catch-up contributions for individuals age #ej or over1 see section #dad7v77#b77;,b77ii74 7,e7 ,eligible employer ,for purposes of this paragraph-- 7i7 ,in general ,the term eligible employer means any employer which1 during the first plan year of the cash or deferred arrangement described in subparagraph 7,b71 does not maintain any other qualified plan4 ,an employer treated as an eligible employer under the preceding sentence shall be treated as an eligible employer with respect to the arrangement for any subsequent plan year without regard to whether it maintains another qualified plan4 7ii7 ,qualified plan ,the term qualified plan means a plan1 contract1 pension1 account1 or trust described in subparagraph 7,a7 or 7,b7 of paragraph 7#e7 of section #bai7;g7 7determined without regard to the last sentence of such paragraph 7#e774 4 7b7 ,catch-,up contributions for individuals age #ej and over 7#a7 ,section #dad7v77#b77;,b7 is amended by inserting 1 #dja7k77#ad71 after #dja7k77#aa7 each place it appears4 7#b7 ,section #dad7v77#c77;,b7 is amended by inserting #dja7k77#ad71 after #dja7k77#aa714 7c7 ,simplified reporting ,section #ajd7;a77#b77;,a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;a77#b77 is amended by inserting or for any pension plan which is a starter #dja7k7 deferral-only arrangement described in section #dja7k77#ad77;,b7 of the ,internal ,revenue ,code of #aihf before the period at the end4 7d7 ,starter plans not treated as top-,heavy plans ,clause 7i7 of section #daf7;g77#d77;,h7 is amended by striking or #dja7k77#ac7 and inserting #dja7k77#ac71 or #dja7k77#ad74 7e7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bjb4 ,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 #bjc4 ,employers allowed to replace simple retirement accounts with safe harbor #dja7k7 plans during a year 7a7 ,in general ,section #djh7p7 is amended by adding at the end the following new paragraph3 7#aa7 ,replacement of simple retirement accounts with safe harbor plans during plan year 7,a7 ,in general ,subject to the requirements of this paragraph1 an employer may elect 7in such form and manner as the ,secretary may prescribe7 at any time during a year to terminate the qualified salary reduction arrangement under paragraph 7#b71 but only if the employer establishes and maintains 7as of the day after the termination date7 a safe harbor plan to replace the terminated arrangement4 7,b7 ,combined limits on contributions ,the terminated arrangement and safe harbor plan shall both be treated as violating the requirements of paragraph 7#b77;,a77ii7 or section #dja7;a77#cj7 7whichever is applicable7 if the aggregate elective contributions of the employee under the terminated arrangement during its last plan year and under the safe harbor plan during its transition year exceed the sum of-- 7i7 the applicable dollar amount for such arrangement 7determined on a full-year basis7 with respect to the employee for such last plan year multiplied by a fraction equal to the number of days in such plan year divided by #cfe1 and 7ii7 the applicable dollar amount 7as so determined7 for such safe harbor plan on such elective contributions during the transition year multiplied by a fraction equal to the number of days in such transition year divided by #cfe4 7,c7 ,applicable dollar amount ,the applicable dollar amount is the amount determined under paragraph 7#b77;,a77ii7 7after the application of section #dad7v77 or section #djb7;g77#a71 whichever is applicable4 7,d7 ,transition year ,for purposes of this paragraph1 the transition year is the period beginning after the termination date and ending on the last day of the calendar year during which the termination occurs4 7,e7 ,safe harbor plan ,for purposes of this paragraph1 the term safe harbor plan means a qualified cash or deferred arrangement which meets the requirements of paragraph 7#aa71 7#ab71 or 7#ac7 of section #dja7k74 4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bjd4 ,modification of automatic enrollment safe harbor 7a7 ,removal of #aj percent cap after #ast plan year 7#a7 ,in general ,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 #bje4 ,plan adopted by filing due date for year may be treated as in effect as of close of year 7a7 ,in general ,section #dja7;b71 as amended by section #baa of this ,act1 is amended by adding at the end the following3 7#d7 ,adoption of plan ,if an employer adopts a stock bonus1 pension1 profit-sharing1 or annuity plan after the close of a taxable year but before the time prescribed by law for filing the return of the employer for the taxable year 7including extensions thereof71 the employer may elect to treat the plan as having been adopted as of the last day of the taxable year4 4 7b7 ,effective date ,the amendments made by this section shall apply to plans adopted for taxable years beginning after ,december #ca1 #bjac4 #bjf4 ,rules relating to election of safe harbor #dja7k7 status 7a7 ,limitation of annual safe harbor notice to matching contribution plans 7#a7 ,in general ,subparagraph 7,a7 of section #dja7k77#ab7 is amended by striking if such arrangement and all that follows and inserting 8if such arrangement-- 7i7 meets the contribution requirements of subparagraph 7,b7 and the notice requirements of subparagraph 7,d71 or 7ii7 meets the contribution requirements of subparagraph 7,c74 4 7#b7 ,automatic contribution arrangements ,subparagraph 7,b7 of section #dja7k77#ac7 is amended by striking means and all that follows and inserting 8means a cash or deferred arrangement-- 7,a7 which is described in subparagraph 7,d77i77,i7 and meets the applicable requirements of subparagraphs 7,c7 through 7,e71 or 7,b7 which is described in subparagraph 7,d77i77,,ii7 and meets the applicable requirements of subparagraphs 7,c7 and 7,d74 4 7b7 ,nonelective contributions ,section #dja7k77#ab7 is amended by redesignating subparagraph 7,f7 as subparagraph 7,g71 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 ,timing of plan amendment for employer making nonelective contributions 7i7 ,in general ,except as provided in clause 7ii71 a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph 7,c7 shall apply to the arrangement for the plan year1 but only if the amendment is adopted-- 7,i7 at any time before the #cjth day before the close of the plan year1 or 7,,ii7 if the requirements of clause 7iii7 are met1 at any time before the last day under paragraph 7#h77;,a7 for distributing excess contributions for the plan year4 7ii7 ,exception where plan provided for matching contributions ,clause 7i7 shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph 7,b7 applied to the plan year4 7iii7 #d-percent contribution requirement ,clause 7i77,,ii7 shall not apply to an arrangement unless the amount of the contributions described in subparagraph 7,c7 which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least #d percent of the employee's compensation4 4 7c7 ,automatic contribution arrangements ,section #dja7k77#ac7 is amended by adding at the end the following 3 7,f7 ,timing of plan amendment for employer making nonelective contributions 7i7 ,in general ,except as provided in clause 7ii71 a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph 7,d77i77,,ii7 shall apply to the arrangement for the plan year1 but only if the amendment is adopted-- 7,i7 at any time before the #cjth day before the close of the plan year1 or 7,,ii7 if the requirements of clause 7iii7 are met1 at any time before the last day under paragraph 7#h77;,a7 for distributing excess contributions for the plan year4 7ii7 ,exception where plan provided for matching contributions ,clause 7i7 shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph 7,d77i77,i7 applied to the plan year4 7iii7 #d-percent contribution requirement ,clause 7i77,,ii7 shall not apply to an arrangement unless the amount of the contributions described in subparagraph 7,d77i77,,ii7 which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least #d percent of the employee's compensation4 4 7d7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bjg4 ,modifications of rules relating to multiple employer defined contribution plans 7a7 ,qualification requirements ,section #dac is amended by adding at the end the following3 7d7 ,application of qualification requirements for certain multiple employer plans with designated plan providers 7#a7 ,in general ,if a plan to which subsection 7c7 applies is sponsored by employers that have a common interest other than having adopted the plan1 or has a designated plan provider1 then1 except as provided in paragraph 7#c71 the failure of the portion of the plan covering the employees of an employer maintaining the plan to satisfy any applicable qualification requirement under section #dja7;a7 will not affect the qualification of any portion of the plan covering employees of any employer who has satisfied all such requirements4 7#b7 ,designated plan provider ,for purposes of this subsection-- 7,a7 ,in general ,the term designated plan provider means the person designated under the terms of the plan as the person responsible to perform all administrative duties which are reasonably necessary to ensure that the plan1 and each participating employer1 meets the requirements described in paragraph 7#a71 including conducting proper testing of such plan and employers4 7,b7 ,registration1 etc4 requirements ,a person shall not be treated as a designated plan provider with respect to any plan unless-- 7i7 the person registers with the ,secretary and provides such identifying information as the ,secretary may require1 and 7ii7 the person consents to audits by the ,secretary at such times as the ,secretary determines appropriate to ensure the person is performing the duties described in subparagraph 7,a74 7#c7 ,failure by provider to perform duties ,if the designated plan provider of a plan does not perform the duties described in paragraph 7#b77;,a7 with respect to any plan year so as to reasonably ensure the plan meets the requirements described in paragraph 7#a7-- 7,a7 paragraph 7#a7 shall not apply to the plan for the plan year1 and 7,b7 the determination as to whether the plan1 or any participating employer1 meets such requirements shall be made in the same manner as made with respect to a plan without a designated plan provider4 7#d7 ,guidance ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this subsection1 including guidance to-- 7,a7 identify the administrative duties required to be performed under paragraph 7#b77;,a71 and 7,b7 require1 if appropriate1 that the portion of the plan attributable to participating employers not meeting the requirements described in paragraph 7#a7 be spun off to plans maintained by such employers4 4 7b7 ,modification of ,,erisa requirements 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 7iii7 and 7iv7 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 employer and each person designated as a designated plan provider under section #dac of the ,internal ,revenue ,code of #aihf4 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 person designated as the designated plan provider and the named fiduciary if different from such provider1 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 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 year1 a qualified multiple employer plan 7as defined in section #c7b77;,c77 which1 for the preceding plan year-- 7i7 did not have more than #b1ejj participants1 and 7ii7 did not have any employer sponsoring the plan which had more than #ejj employees as participants4 4 7c7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjac4 ,b ,pension plan and retirement savings simplification #baa4 ,modifications of deadlines for adopting pension plan amendments 7a7 ,required amendments ,section #dja7;b7 is amended-- 7#a7 by striking all that precedes stock bonus1 pension1 profit-sharing and inserting3 7b7 ,retroactive amendments to1 and adoption of1 a plan 7#a7 ,retroactive changes to amendments causing plan to fail ,a 1 and 7#b7 by adding at the end the following3 7#b7 ,coordination of timing of pension plan amendment adoption1 and remedial plan review1 requirements 7,a7 ,in general ,except as provided in subparagraph 7,b71 in the case of any required amendment to a stock bonus1 pension1 profit-sharing1 or annuity plan-- 7i7 the plan shall be treated as being operated in accordance with the terms of the plan during the remedial period1 and 7ii7 except as provided by the ,secretary1 such plan shall not fail to meet the requirements of section #daa7;d77#f7 of the ,internal ,revenue ,code of #aihf and section #bjd7;g7 of the ,employee ,retirement ,income ,security ,act of #aigd by reason of such amendment4 7,b7 ,conditions ,subparagraph 7,a7 shall not apply to any required amendment to a plan unless-- 7i7 the required amendment is adopted before the end of the remedial period1 7ii7 the plan is operated as if the required amendment were in effect during the remedial period1 and 7iii7 the required amendment applies retroactively for the remedial period4 7,c7 ,required amendment ,for purposes of this paragraph1 the term required amendment means any amendment to a plan which is required by 7or integral to meeting the requirements of7 any ,federal law or any regulation issued by the ,secretary or the ,secretary of ,labor4 7,d7 ,remedial period ,for purposes of this paragraph-- 7i7 ,remedial period ,the term remedial period means1 with respect to any required amendment to a plan1 the period-- 7,i7 beginning on the date the amendment is required under the law or regulation described in subparagraph 7,c7 to take effect1 and 7,,ii7 ending on the last day in the remedial plan review period with respect to the plan in which the date determined under subclause 7,i7 occurs 7or1 if earlier1 the date the plan amendment is adopted74 7ii7 ,remedial plan review period ,the term remedial plan review period means1 with respect to any plan1 the period established by the ,secretary under the authority of section #dja7;b7 as the regular cycle of review by the ,secretary for determining whether the plan continues to meet the requirements of this title for treatment as a qualified plan under section #dja7;a74 4 7b7 ,retroactive application of discretionary amendments ,section #dja7;b71 as amended by subsection 7a71 is amended by adding at the end the following3 7#c7 ,discretionary amendments ,in the case of an amendment to which paragraphs 7#a7 and 7#b7 do not otherwise apply1 the provisions of paragraph 7#a7 shall apply to such amendment if it is to take effect during a plan year and is adopted by the last day prescribed by law 7including extensions7 for filing the return of tax for the taxable year of the employer within which such plan year ends4 4 7c7 ,effective date ,the amendments made by this section shall apply with respect to amendments taking effect with respect to plan years beginning after ,december #ca1 #bjac4 #bab4 ,termination of application of top-heavy plan rules 7a7 ,in general ,section #daf is amended by adding at the end the following3 7j7 ,termination 7#a7 ,in general ,this section shall not apply to any plan year beginning after ,december #ca1 #bjac4 7#b7 ,vesting rules applicable to previously accrued benefits ,if a plan was a top-heavy plan for any plan year beginning before ,january #a1 #bjad1 then1 notwithstanding paragraph 7#a71 the vesting rules applicable to the plan under subsection 7b7 for the plan year shall continue to apply to any accrued benefit derived during the plan year4 4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bac4 ,amendments to safe harbor #dja7k7 plans during plan year 7a7 ,in general ,section #dja7k77#ab71 as amended by section #bjf of this ,act1 is amended by redesignating subparagraph 7,g7 as subparagraph 7,h7 and by inserting after subparagraph 7,f7 the following3 7,g7 ,amendments to safe harbor plans during plan year 7i7 ,in general ,except as provided in clause 7ii71 an amendment to an arrangement to which this paragraph or paragraph 7#ac7 applies may take effect during a plan year if it is adopted before the close of the plan year4 7ii7 ,no reduction in matching contributions ,clause 7i7 shall not apply to any amendment which reduces the amount of the matching contributions an employer is required to make under the arrangement as in effect before the amendment4 4 7b7 ,effective date ,the amendment made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bad4 ,modification of rules relating to hardship withdrawals from cash or deferred arrangements 7a7 ,in general ,section #dja7k71 as amended by section #bja of this ,act1 is amended by adding at the end the following3 7#ae7 ,special rules relating to hardship withdrawals ,for purposes of paragraph 7#b77;,b77i77,,iv7-- 7,a7 ,amounts which may be withdrawn ,the following amounts may be distributed upon hardship of the employee3 7i7 ,contributions to a profit-sharing or stock bonus plan to which section #djb7;e77#c7 applies4 7ii7 ,qualified nonelective contributions 7as defined in subsection 7m77#d77;,c774 7iii7 ,qualified matching contributions described in paragraph 7#c77;,d77ii77,i74 7iv7 ,earnings on any contributions described in clause 7i71 7ii71 or 7iii74 7,b7 ,no requirement to take available loan ,a distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan4 7,c7 ,participation in arrangement not conditioned on whether hardship distribution made ,in determining whether a distribution is made upon the hardship of an employee1 the ,secretary shall not take into account whether or not an employee makes elective or employee contributions under the arrangement for any period after the distribution4 4 7b7 ,conforming amendment ,subclause 7,,iv7 of section #dja7k77#b77;,b77i7 is amended to read as follows3 7,,iv7 subject to the provisions of paragraph 7#ae71 upon hardship of the employee1 or 4 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjac4 #bae4 ,individual may roll over insurance contract into individual retirement account 7a7 ,in general ,section #djh7;a7 is amended by adding at the end the following new flush sentence3 ,a trust shall not be treated as failing to meet the requirements of paragraph 7#c7 merely because it holds a life insurance contract which was transferred to the trust in a rollover contribution described in paragraph 7#a74 4 7b7 ,conforming amendments ,section #gb7m77#c7 is amended-- 7#a7 in subparagraph 7,a71 by striking or at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 or1 and by adding at the end the following3 7iii7 held by a trust described in section #djh7;a7 after being contributed to the trust in a rollover contribution described in section #djh7;a77#a74 1 and 7#b7 in subparagraph 7,b71 by striking subparagraph 7,a77ii7 each place it appears and inserting clauses 7ii7 or 7iii7 of subparagraph 7,a74 7c7 ,effective date ,the amendments made by this section shall apply to rollover contributions after ,december #ca1 #bjac4 #baf4 ,forfeitures allocated to participant's account may be treated as employer matching or nonelective contributions 7a7 ,in general ,section #dja7k77#ab71 as amended by sections #bjf and #bac of this ,act1 is amended by redesignating subparagraph 7,h7 as subparagraph 7,i71 and by inserting after subparagraph 7,g7 the following3 7,h7 ,treatment of forfeitures allocated to employee's account ,for purposes of this paragraph and paragraph 7#ac71 an employer may treat a forfeiture allocated to an employee's account for any plan year as a matching or nonelective contribution made by the employer which is taken into account in determining whether the contribution requirements of this paragraph or paragraph 7#ac71 whichever is applicable1 are met4 4 7b7 ,effective date ,the amendment made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bag4 ,time for providing explanation of qualified preretirement survivor annuity 7a7 ,amendment to ,internal ,revenue ,code of #aihf ,subparagraph 7,b7 of section #dag7;a77#c7 is amended to read as follows3 7,b7 ,explanation of qualified preretirement survivor annuity ,each plan shall provide to each participant1 within a reasonable time after the individual becomes a participant 7and consistent with such regulations as the ,secretary may prescribe71 a written explanation with respect to the qualified preretirement survivor annuity comparable to the explanation required under subparagraph 7,a74 ,a plan shall be treated as meeting the requirements of this subparagraph if the explanation is included with each summary plan description required to be provided to the participant under section #ajb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbb74 4 7b7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,subparagraph 7,b7 of section #bje7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd is amended to read as follows3 7,b7 ,each plan shall provide to each participant1 within a reasonable time after the individual becomes a participant 7and consistent with such regulations as the ,secretary of the ,treasury may prescribe71 a written explanation with respect to the qualified preretirement survivor annuity comparable to the explanation required under subparagraph 7,a74 ,a plan shall be treated as meeting the requirements of this subparagraph if the explanation is included with each summary plan description required to be provided to the participant under section #ajb4 4 7c7 ,effective date ,the amendments made by this section shall apply to-- 7#a7 individuals who become participants after ,december #ca1 #bjac1 and 7#b7 individuals who became participants before such date but to whom the written explanation under section #dag7;a77#c77;,b7 of the ,internal ,revenue ,code of #aihf and section #bje7;c77#c77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7as in effect before such amendments7 was not required to be provided before ,january #a1 #bjad4 ,in the case of any individual described in paragraph 7#b71 a plan shall be treated as meeting the requirements of such sections #dag7;a77#c77;,b7 and #bje7;c77#c77;,b7 7as in effect after such amendments7 if the written explanation is provided within a reasonable period after ,december #ca1 #bjac4 #bah4 ,modifications of additional participation requirements for defined benefit plans 7a7 ,in general ,section #dja7;a77#bf7 is amended by redesignating subparagraph 7,h7 as subparagraph 7,j7 and by inserting after subparagraph 7,g7 the following3 7,h7 ,requirements may be satisfied through minimum contributions to defined contribution plan 7i7 ,in general ,this paragraph shall not apply to a defined benefit plan of an employer for any plan year if-- 7,i7 the defined benefit plan is aggregated with a defined contribution plan of the employer for purposes of subsection 7a77#d7 and section #daj7;b71 7,,ii7 the defined benefit plan and the defined contribution plan1 when so aggregated1 meet the requirements of subsection 7a77#d7 and section #daj7;b71 and 7,,iii7 the contribution requirements of clause 7ii7 are met with respect to the defined contribution plan4 7ii7 ,contribution requirements ,the requirements of this clause are met with respect to a defined contribution plan if1 under the plan1 the employer is required to make nonelective contributions for the applicable plan year of at least #g4e percent of compensation for a number of employees at least equal to the number of employees which the defined benefit plan would have been required to benefit under this paragraph without regard to this subparagraph4 ,no highly compensated employees 7within the meaning of section #dad7q77 may be taken into account in determining whether the requirements of this clause are met4 7iii7 ,applicable plan year ,for purposes of clause 7ii71 the term applicable plan year means the plan year of the defined contribution plan which ends with or within the plan year of the defined benefit plan to which clause 7i7 applies4 7,i7 ,special rules for frozen plans 7i7 ,aggregation permitted to satisfy requirements 7,i7 ,in general ,except as provided in subclauses 7,,ii7 and 7,,iii71 if a plan is a frozen defined benefit plan for any plan year1 an employer may aggregate the plan with any other defined benefit plan or defined contribution plan of the employer for purposes of determining whether the requirements of this paragraph are met with respect to the frozen defined benefit plan4 7,,ii7 ,aggregation for other purposes ,an employer may not apply subclause 7,i7 unless the employer also aggregates the plans for purposes of subsection 7a77#d7 and section #daj7;b74 7,,iii7 ,benefits of highly compensated employees disregarded ,in the case of any other plan aggregated with a frozen defined benefit plan under subclause 7,i71 accrued benefits of highly compensated employees shall not be taken into account in applying subclause 7,i74 7ii7 ,requirements not to apply in certain cases 7,i7 ,in general ,except as provided in subclause 7,,ii71 this paragraph shall apply to a frozen defined benefit plan of an employer for any plan year only if the employer maintains any other defined benefit plan during the #f-year period beginning with the first day of the plan year4 7,,ii7 ,retroactive application ,clause 7i7 shall not apply unless the frozen defined benefit plan provides that if the employer establishes or maintains any other defined benefit plan during the #f-year period under subclause 7,i71 each employee 7other than a highly compensated employee7 shall retroactively accrue benefits under the frozen defined benefit plan for each year of service the employee would have had under the plan during such period 7determined as if the employee were one of the employees required to benefit under the plan under this paragraph74 7iii7 ,frozen defined benefit plan ,for purposes of this subparagraph1 the term frozen defined benefit plan means a defined benefit plan which has in effect an amendment that provides that the plan may not accept any new participants after the effective date of the amendment4 7iv7 ,highly compensated employee ,the term highly compensated employee has the meaning given such term by section #dad7q74 4 7b7 ,effective date ,the amendment made by this section applies to plan years beginning after ,december #ca1 #bjac4 #bai4 ,treatment of custodial accounts on termination of section #djc7;b7 plans 7a7 ,in general ,section #djc7;b77#g7 is amended by adding at the end the following3 7,d7 ,treatment of custodial account upon plan termination 7i7 ,in general ,if-- 7,i7 an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph 7,a71 and 7,,ii7 the person holding the assets of the account has demonstrated to the satisfaction of the ,secretary under section #djh7;a77#b7 that the person is qualified to be a trustee of an individual retirement plan1 then1 as of the date of the termination1 the custodial account shall be deemed to be an individual retirement plan for purposes of this title4 7ii7 ,treatment as ,roth ,,ira ,any custodial account treated as an individual retirement plan under clause 7i7 shall be treated as a ,roth ,,ira only if the custodial account was a designated ,roth account4 4 7b7 ,effective date ,the amendments made by this section shall apply to plan terminations occurring after ,december #ca1 #bjac4 #bbj4 ,secure deferral arrangements 7a7 ,in general ,subsection 7k7 of section #dja1 as amended by this ,act1 is amended by adding at the end the following new paragraph3 7#af7 ,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 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 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#af771 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 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 matching and nonelective contributions under a secure deferral arrangement 7as defined in section #dja7k77#af77 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 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 #dja1 as amended by subsection 7a71 is amended by adding at the end the following new paragraph3 7#ag7 ,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 #dja1 as amended by subsection 7b71 is amended by redesignating paragraph 7#ad7 as paragraph 7#ae7 and by inserting after paragraph 7#ac7 the following new paragraph3 7#ad7 ,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 arrangements ,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#af7 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 systems1 and 7#b7 clarify1 simplify1 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#af77;,c7 of such ,code1 especially in cases where the employer has employees subject to different payroll and administrative systems4 7e7 ,effective dates 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 #bba4 ,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 in the case of a plan maintained by an employer described in subsection 7e77#a77;,a71 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 #bbb4 ,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 #bbc4 ,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 ,c ,longevity reforms #bca4 ,modification of required minimum distribution rules where portion of benefit of defined contribution plan is annuitized 7a7 ,in general ,section #dja7;a77#i7 is amended by redesignating subparagraph 7,f7 as subparagraph 7,g7 and by inserting after subparagraph 7,e7 the following3 7,f7 ,exemption for certain annuitized amounts ,this paragraph shall not apply to the portion of an employee's entire interest under a defined contribution plan which is invested in a qualified deferred annuity in accordance with the requirements of subsection 7o74 4 7b7 ,investment in qualified annuity ,section #dja is amended by redesignating subsection 7o7 as subsection 7p7 and by inserting after subsection 7n7 the following3 7o7 ,rules and definitions relating to investments in qualified deferred annuities 7#a7 ,in general ,subparagraph 7,f7 of subsection 7a77#i7 shall apply to the portion of an employee's entire interest under the plan invested in a qualified deferred annuity only if-- 7,a7 the annuity contract is purchased on or before the required beginning date1 and 7,b7 the investment in the contract does not exceed #be percent of the employee's entire interest under the plan as of the close of the calendar year preceding the calendar year in which the purchase occurs4 7#b7 ,exception applies only to #a annuity ,subparagraph 7,f7 of subsection 7a77#i7 shall apply only with respect to #a qualified deferred annuity purchased with a portion of an employee's interest in any plan4 7#c7 ,qualified deferred annuity ,for purposes of subsection 7a77#i77;,f7 and this subsection1 the term qualified deferred annuity means an annuity contract-- 7,a7 which is a commercial annuity 7as defined in section #cdje7;e77#f77 which provides benefits in the form of either-- 7i7 a single annuity for the life of the employee under which the annuity payments are substantially equal periodic payments made not less frequently than annually1 or 7ii7 a qualified joint and survivor annuity 7as defined in section #dag7;b77 which is the actuarial equivalent of an annuity under clause 7i71 and 7,b7 under which payments are deferred but must commence no later than the date on which the employee attains the age of #he4 7#d7 ,employee dying before distributions begin ,if-- 7,a7 an employee dies before the distribution of the employee's interest has begun in accordance with subsection 7a77#i77;,a77ii7 and before the employee has invested in a qualified deferred annuity in accordance with this subsection1 and 7,b7 the designated beneficiary is the surviving spouse of the employee1 the surviving spouse may invest any portion of the entire interest in a qualified deferred annuity in accordance with this subsection in the same manner as the employee but the required beginning date shall not be earlier than1 and the deferral period of the annuity shall be based on1 the dates the employee would have attained the age of #gj or #he1 respectively4 7#e7 ,special rule for ,i,r,as and #djc7;b7s ,in the case of individual retirement plans and annuity contracts to which the requirements of subsection 7a77#i7 apply by reason of subsections 7a77#f7 and 7b77#c7 of section #djh and section #djc7;b77#aj71 the employee may elect to treat all such plans and accounts with the same required beginning date as #a plan for purposes of applying this subsection4 4 7c7 ,effective date ,the amendments made by this section shall apply to investments in annuity contracts after ,december #ca1 #bjac4 #bcb4 ,updating of mortality tables for minimum required distributions ,section #dja7;a77#i71 as amended by section #bca1 is amended by redesignating subparagraph 7,g7 as subparagraph 7,h7 and by inserting after subparagraph 7,f7 the following3 7,g7 ,mortality tables 7i7 ,initial update ,not later than #a year after the date of the enactment of this subparagraph1 the ,secretary shall either update1 or provide new tables to replace1 the mortality tables used as of such date for purposes of this paragraph4 7ii7 ,periodic revision ,the ,secretary shall 7at least every #e years7 make revisions in1 or provide new tables to replace1 any table in effect under this subparagraph to reflect the actual experience of pension plans and projected trends in such experience4 7iii7 ,effective date ,any table prescribed under this subparagraph shall apply to plan years beginning after the date which is #a year after publication of the final table4 4 #bcc4 ,minimum required distributions may be rolled over into ,roth ,i,r,as 7a7 ,in general ,section #djh;,a7e7 is amended by adding at the end the following3 7#c7 ,rollover of minimum required distributions allowed ,section #djh7;d77#c77;,e7 shall not apply in determining whether a rollover contribution is a qualified rollover distribution under paragraph 7#a74 4 7b7 ,effective date ,the amendment made by this section shall apply to distributions for taxable years beginning after ,december #ca1 #bjac4 #bcd4 ,transfer of minimum survivor annuity requirements from plan sponsors to annuity providers 7a7 ,amendment of #aihf ,code ,section #dag is amended by adding at the end the following3 7h7 ,transfer of minimum survivor annuity requirements from plan sponsors to annuity providers 7#a7 ,in general ,if a defined contribution plan to which the requirements of section #dja7;a77#aa7 and this section apply has a designated annuity provider1 then1 except as provided in paragraph 7#c71 the designated annuity provider 7and not any plan sponsor or administrator7 shall be liable for any failure to meet any such requirement4 7#b7 ,designated annuity provider ,for purposes of this subsection1 the term designated annuity provider means a person licensed under the laws of any ,state to issue annuity contracts which has entered into a contract with the plan sponsor or other person who is a fiduciary with respect to the plan to-- 7,a7 provide annuity contracts to participants and beneficiaries under the plan1 and 7,b7 meet all requirements under this section and section #dja7;a77#aa7 with respect to the providing of such annuities1 including providing such annuities in the proper form1 providing any notice or written explanations during any applicable notice period1 and providing the opportunity for participants and their spouses or beneficiaries to make appropriate elections during any applicable election period4 7#c7 ,requirement for prudent solicitation and retention of provider ,this subsection shall apply to a plan with a designated annuity provider only if the plan sponsor or other person who is a fiduciary with respect to the plan met all requirements for the prudent selection and periodic review of the annuity provider with respect to whom a contract described in paragraph 7#b7 was entered into4 7#d7 ,authority to charge fees to participants ,a plan shall not be treated as failing to meet the requirements of this subsection merely because plan assets are used to pay for reasonable expenses of the designated annuity provider in meeting the requirements described in paragraph 7#b77;,b74 7#e7 ,electronic notification ,the ,secretary shall1 to the maximum extent practicable1 ensure that notices and explanations provided by the designated annuity provider are provided in electronic form4 4 7b7 ,amendment of ,,erisa ,section #bje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7 is amended by adding at the end the following3 7m7 ,transfer of minimum survivor annuity requirements from plan sponsors to annuity providers 7#a7 ,in general ,if an individual account plan to which the requirements of this section apply has a designated annuity provider1 then1 except as provided in paragraph 7#c71 the designated annuity provider 7and not any plan sponsor or administrator7 shall be liable for any failure to meet any such requirement4 7#b7 ,designated annuity provider ,for purposes of this subsection1 the term designated annuity provider means a person licensed under the laws of any ,state to issue annuity contracts which has entered into a contract with the plan sponsor or other person who is a fiduciary with respect to the plan to-- 7,a7 provide annuity contracts to participants and beneficiaries under the plan1 and 7,b7 meet all requirements under this section and section #dja7;a77#aa7 of the ,internal ,revenue ,code of #aihf with respect to the providing of such annuities1 including providing such annuities in the proper form1 providing any notice or written explanations during any applicable notice period1 and providing the opportunity for participants and their spouses or beneficiaries to make appropriate elections during any applicable election period4 7#c7 ,requirement for prudent solicitation and retention of provider ,this subsection shall apply to a plan with a designated annuity provider only if the plan sponsor or other person who is a fiduciary with respect to the plan met all requirements for the prudent selection and periodic review of the annuity provider with respect to whom a contract described in paragraph 7#b7 was entered into4 7#d7 ,authority to charge fees to participants ,a plan shall not be treated as failing to meet the requirements of this subsection merely because plan assets are used to pay for reasonable expenses of the designated annuity provider in meeting the requirements described in paragraph 7#b77;,b74 7#e7 ,electronic notification ,the ,secretary of the ,treasury shall1 to the maximum extent practicable1 ensure that notices and explanations provided by the designated annuity provider are provided in electronic form4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bce4 ,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 ,d ,modifications to the ,employee ,retirement ,income ,security ,act of #aigd #bda4 ,electronic communication of pension plan information 7a7 ,amendment to ,employee ,retirement ,income ,security ,act of #aigd ,part #a of subtitle ,b of title #a of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is amended by adding at the end the following new section3 #aab4 ,electronic communication of pension plan information ,any document that is required or permitted under this title to be furnished to a plan participant1 beneficiary1 or other individual with respect to a pension plan may be furnished in electronic form if-- 7#a7 the system for furnishing such a document-- 7,a7 is designed to result in access to the document by the participant1 beneficiary1 or other specified individual through electronic means1 including-- 7i7 the direct delivery of material to an electronic address of such participant1 beneficiary1 or individual1 7ii7 the posting of material to a website or other internet or electronic-based information repository to which access has been granted to such participant1 beneficiary1 or individual1 but only if proper notice of the posting has been provided 7which may include notice furnished by other electronic means if the content of the notice conveys the need to take action to access the posted material71 and 7iii7 other electronic means reasonably calculated to ensure actual receipt of the material by such participant1 beneficiary1 or individual1 and 7,b7 protects the confidentiality of personal information relating to such participant's1 beneficiary's1 or individual's accounts and benefits2 7#b7 the participant or beneficiary has not elected to receive a paper version of such document2 7#c7 notice is provided to each participant or beneficiary1 in electronic or non-electronic form1 before a document is furnished electronically1 that apprises the individual of the right to elect to receive a paper version of such document2 and 7#d7 the electronically furnished document-- 7,a7 is prepared and furnished in a manner that is consistent with the style1 format1 and content requirements applicable to the particular document2 and 7,b7 includes a notice that apprises the individual of the significance of the document when it is not otherwise reasonably evident as transmitted4 ,for purposes of this section1 the term document includes reports1 statements1 notices1 notifications1 and other information4 4 7b7 ,amendment to ,internal ,revenue ,code of #aihf ,section #dad of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7y7 ,electronic communication of pension plan information ,any document that is required or permitted under this title to be furnished to a plan participant1 beneficiary1 or other individual with respect to a pension plan may be furnished in electronic form if-- 7#a7 the system for furnishing such a document-- 7,a7 is designed to result in access to the document by the participant1 beneficiary1 or other specified individual through electronic means1 including-- 7i7 the direct delivery of material to an electronic address of such participant1 beneficiary1 or individual1 7ii7 the posting of material to a website or other internet or electronic-based information repository to which access has been granted to such participant1 beneficiary1 or individual1 but only if proper notice of the posting has been provided 7which may include notice furnished by other electronic means if the content of the notice conveys the need to take action to access the posted material71 and 7iii7 other electronic means reasonably calculated to ensure actual receipt of the material by such participant1 beneficiary1 or individual1 and 7,b7 protects the confidentiality of personal information relating to such participant's1 beneficiary's1 or individual's accounts and benefits2 7#b7 the participant or beneficiary has not elected to receive a paper version of such document2 7#c7 notice is provided to each participant or beneficiary1 in electronic or non-electronic form1 before a document is furnished electronically1 that apprises the individual of the right to elect to receive a paper version of such document2 and 7#d7 the electronically furnished document-- 7,a7 is prepared and furnished in a manner that is consistent with the style1 format1 and content requirements applicable to the particular document2 and 7,b7 includes a notice that apprises the individual of the significance of the document when it is not otherwise reasonably evident as transmitted4 ,for purposes of this subsection1 the term document includes reports1 statements1 notices1 notifications1 and other information4 4 7c7 ,effective date ,the amendments made by this section shall apply with respect to documents furnished with respect to plan years beginning after ,december #ca1 #bjac4 #bdb4 ,modification of deadlines for summary plan description updates 7a7 ,in general ,paragraph 7#a7 of section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;b77#a77 is amended to read as follows3 7#a7 7,a7 ,the administrator shall furnish to each participant1 and each beneficiary receiving benefits under the plan1 a copy of the summary plan description1 and all modifications and changes referred to in section #ajb7;a7-- 7i7 within #ij days after becoming a participant1 or in the case of a beneficiary1 within #ij days after first receiving benefits1 or 7ii7 if later1 within #abj days after the plan becomes subject to this part4 7,b7 7i7 ,except as provided in clause 7ii71 the administrator shall furnish to each participant1 and each beneficiary receiving benefits under the plan1 every fifth year after the plan becomes subject to this part an updated summary plan description described in section #ajb which integrates all plan amendments made within such five-year period1 except that in a case where no amendments have been made to a plan during such five-year period1 this sentence shall not apply4 ,notwithstanding the foregoing1 the administrator shall furnish to each participant1 and to each beneficiary receiving benefits under the plan1 the summary plan description described in section #ajb every tenth year after the plan becomes subject to this part4 7ii7 ,in the case of a pension plan1 the administrator shall furnish to each participant1 and each beneficiary receiving benefits under the plan1 #baj days after the end of each remedial plan review period1 an updated summary plan description described in section #ajb which integrates all plan amendments made during such period1 except that if no amendments have been made to a plan during such period1 an updated summary plan description shall be furnished not later than #baj days after the end of the subsequent remedial plan review period 7without regard to whether plan amendments were made during such subsequent period74 7,c7 7i7 ,if there is a modification or change described in section #ajb7;a7 7other than a material reduction in covered services or benefits provided in the case of a group health plan 7as defined in section #gcc7;a77#a7771 a summary description of such modification or change shall be furnished not later than #baj days after the end of the plan year in which the change is adopted to each participant1 and to each beneficiary who is receiving benefits under the plan4 7ii7 ,for purposes of clause 7i71 any amendment to a pension plan adopted during a remedial plan review period shall be treated as adopted in the plan year in which the amendment took effect4 7,d7 ,if there is a modification or change described in section #ajb7;a7 that is a material reduction in covered services or benefits provided under a group health plan 7as defined in section #gcc7;a77#a771 a summary description of such modification or change shall be furnished to participants and beneficiaries not later than #fj days after the date of the adoption of the modification or change4 ,in the alternative1 the plan sponsors may provide such description at regular intervals of not more than #ij days4 7,e7 ,in this paragraph1 the term remedial plan review period means1 with respect to any pension plan1 the period established by the ,secretary of the ,treasury under the authority of subsection 7b7 of section #dja of the ,internal ,revenue ,code of #aihf as the regular cycle of review by the ,secretary of the ,treasury for determining whether the pension plan continues to meet the requirements of such ,code for treatment as a qualified plan under subsection 7a7 of such section #dja4 4 7b7 ,effective date ,the amendments made by this section shall apply with respect to summary plan descriptions furnished under section #ajd7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 and modifications or changes described in section #ajb7;a7 of such ,act 7#bi ,u4,s4,c4 #ajbb7;a771 with respect to plan years beginning after ,december #ca1 #bjac4 #bdc4 ,modification of small plan simplified reporting requirements 7a7 ,in general ,section #ajd7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd1 as amended by section #bja7;c7 of this ,act1 is amended by striking #ajj participants and inserting #ajj participants who have an accrued benefit under the plan4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 #bdd4 ,fiduciary requirement regarding selection of annuity provider and annuity contract 7a7 ,in general ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7 is amended by adding at the end the following3 7e7 ,ability of annuity providers ,to make payments ,in the case of the selection of an annuity provider and annuity contract in connection with the payment of benefits under a defined contribution plan1 the fiduciary requirement under subsection 7a77#a77;,b7 is deemed satisfied with respect to determining the ability of the annuity provider to make all payments due under the contract to the extent that such payments are guaranteed by a ,state guaranty association under applicable ,state law in effect as of the date of issuance of the contract4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to annuity contracts purchased after the date of enactment of this ,act4 ,,iii ,individual retirement investment advice reform #cja4 ,transfer to ,secretary of the ,treasury of authorities regarding individual retirement plans 7a7 ,in general ,section #ajb of ,reorganization ,plan ,no4 #d of #aigh 7ratified and affirmed as law by ,public ,law #ih-ecb 7#ih ,stat4 #bgje77 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking and at the end of clause 7ii71 7,b7 by striking and at the end of clause 7iii71 and 7,c7 by inserting 7iv7 regulations1 rulings1 opinions1 and exemptions relating to individual retirement accounts described in section #djh7;a7 of the ,code and individual retirement annuities described in section #djh7;b7 of the ,code1 including simplified employee pensions under section #djh7k7 of the ,code and simple retirement accounts under section #djh7p7 of the ,code2 and 7v7 regulations described in section #ajc7;b7 of this ,plan2 and at the end of clause 7iii7 7as amended by subparagraph 7,b771 and 7#b7 by adding at the end the following new flush sentence3 ,the ,secretary of the ,treasury shall consult with the ,securities and ,exchange ,commission in prescribing regulations1 rulings1 opinions1 and exemptions under subsection 7a77iv7 that provide guidance of general application as to the professional standards of care 7whether involving fiduciary1 suitability1 or other standards7 owed by brokers and investment advisors to owners and account holders of accounts and annuities described in such subsection4 4 7b7 ,joint authority ,section #ajc of such ,plan is amended-- 7#a7 by striking ,in the case of and inserting3 7a7 ,in the case of 2 and 7#b7 by adding at the end3 7b7 7#a7 ,the ,secretary of the ,treasury and the ,secretary of ,labor shall have joint authority to issue regulations described in this subsection1 and any such regulations shall be issued jointly by such ,secretaries4 7#b7 ,a regulation is described in this subsection if 7i7 the regulation is not described in clause 7i71 7ii71 7iii71 or 7iv7 of section #ajb7;a7 of this ,plan and 7ii7 defines or interprets a term or requirement that is included in section #dige of the ,code or section #djf of ,,erisa4 ,the determination of whether any regulation is described in this subsection shall be made without regard to whether any such term or requirement is also used or defined in any other provision of the ,code or ,,erisa4 4 7c7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to regulations1 rulings1 opinions1 and exemptions which have not been finalized as of ,july #h1 #bjac4 7#b7 ,transition ,any final regulation1 ruling1 opinion1 or exemption described in section #ajb7;a77iv7 or #ajc7;b7 of ,reorganization ,plan ,no4 #d of #aigh 7as added by the amendments made by this section7 which was issued by the ,secretary of ,labor before ,july #i1 #bjac1 shall apply until such time as such regulation1 ruling1 opinion1 or exemption is revoked or modified pursuant to such amendments4