,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bhee  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ah1
 #bjad ,mr4 ,cardin 7for himself and    
,mr4 ,portman7 introduced the following 
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the nondiscrimination       
provisions of the ,internal ,revenue    
,code of #aihf to protect older1 longer 
service participants4  #a4 ,short title 
,this ,act may be cited as the          
,retirement ,security ,preservation ,act
 of #bjad4  #b4 ,protecting older1      
longer service participants  7a7 ,in    
general ,subsection 7a7 of section #dja 
of the ,internal ,revenue ,code of #aihf
 is amended--  7#a7 by striking the     
semicolon at the end of paragraph 7#b7  
and inserting 2 and1  7#b7 by striking 2
 and at the end of paragraph 7#c7 and   
inserting a period1 and  7#c7 by        
striking paragraph 7#d7 and inserting   
the following3  7#d7 ,nondiscrimination 
7,a7 ,in general ,a trust shall not     

constitute a qualified trust under this 
section unless the contributions or     
benefits provided under the plan do not 
discriminate in favor of highly         
compensated employees 7within the       
meaning of section #dad7q774 ,for       
purposes of this paragraph1 there shall 
be excluded from consideration employees
 described in section #daj7;b77#c7 7,a7 
and 7,c74  7,b7 ,protection of older1   
longer service participants  7i7 ,a     
defined benefit plan that provides      
benefits1 rights1 or features to a      
closed class of participants shall not  
fail to satisfy the requirements of this
 paragraph by reason of the composition 
of such closed class or the benefits1   
rights1 or features provided to such    
closed class1 if--  7,i7 such closed    
class and such benefits1 rights1 and    
features satisfied the requirements of  
subparagraph 7,a7 7without regard to    
this clause7 as of the date that the    
class was closed1 and  7,,ii7 after the 
date as of which the class was closed1  

any plan amendments that modify the     
closed class or the benefits1 rights1   
and features provided to such closed    
class satisfy subparagraph 7,a7 7without
 regard to this clause74  ,if a plan    
amendment is adopted that does not meet 
the requirements of subclause 7,,ii71   
the plan shall be treated as meeting the
 requirements of this paragraph if such 
plan satisfied such requirements        
7without regard to subclause 7,,ii77 as 
of the effective date of such amendment4
 ,in such cases1 subclauses 7,i7 and    
7,,ii7 shall subsequently be applied by 
reference to the effective date of the  
plan amendment1 rather than by reference
 to the date that the class was closed4 
7ii7 ,a defined contribution plan shall 
be permitted to be tested on a benefits 
basis if--  7,i7 the plan provides      
make-whole contributions to a closed    
class of participants whose defined     
benefit plan accruals have been reduced 
or eliminated1  7,,ii7 such closed class
 of participants satisfied section      

#daj7;b77#b77;,a77i7 as of the date that
 the class of participants was closed1  
and  7,,iii7 after the date as of which 
the class was closed1 any plan          
amendments that modify the closed class 
or the allocations1 benefits1 rights1   
and features provided to such closed    
class satisfy subparagraph 7,a7 7without
 regard to this clause74  ,if a plan    
amendment is adopted that does not meet 
the requirements of subclause 7,,iii71  
the plan shall be treated as meeting the
 requirements of this paragraph if such 
plan satisfied such requirements        
7without regard to subclause 7,,iii77 as
 of the effective date of such          
amendment4 ,in such cases1 subclauses   
7,,ii7 and 7,,iii7 shall subsequently be
 applied by reference to the effective  
date of the plan amendment1 rather than 
by reference to the date that the class 
was closed4  7iii7 ,in addition to other
 testing methodologies otherwise        
applicable1 for purposes of determining 
compliance with this paragraph and with 

section #daj7;b7 of the portion of one  
or more defined contribution plans      
described in clause 7ii7 that provide   
make-whole contributions1 such portion  
of such plans may be aggregated and     
tested on a benefits basis with the     
portion of one or more defined          
contribution plans that--  7,i7 provides
 matching contributions 7as defined in  
subsection 7m77#d77;,a771 or  7,,ii7    
consists of an employee stock ownership 
plan within the meaning of section      
#dige7;e77#g7 or a tax credit employee  
stock ownership plan within the meaning 
of section #dji7;a74  ,for such         
purposes1 matching contributions shall  
be treated in the same manner as        
employer contributions that are made    
without regard to whether an employee   
makes an elective contribution or       
employee contribution1 including for    
purposes of applying the rules of       
subsection 7l74  7,c7 ,definitions ,for 
purposes of this paragraph--  7i7       
,make-whole contributions ,the term     

make-whole contributions means          
allocations for each employee in the    
class that are reasonably calculated1 in
 a consistent manner1 to replace some or
 all of the retirement benefits that the
 employee would have received under the 
defined benefit plan and any other plan 
or arrangement if no change had been    
made to such defined benefit plan and   
such other plan or arrangement4  7ii7   
,references to closed class of          
participants ,references to a closed    
class of participants and similar       
references to a closed class shall      
include arrangements under which one or 
more classes of participants are closed4
  7,d7 ,protecting grandfathered        
participants in defined benefit plans   
7i7 ,a defined benefit shall be         
permitted to be tested on a benefits    
basis with one or more defined          
contribution plans if--  7,i7 the plan  
provides benefits to a closed class of  
participants1  7,,ii7 the plan and such 
benefits satisfy the requirements of    

subparagraph 7,a7 7without regard to    
this subparagraph7 as of the date the   
class was closed1 and  7,,iii7 after the
 date as of which the class was closed1 
any plan amendments that modify the     
closed class or the benefits provided to
 such closed class satisfy subparagraph 
7,a7 7without regard to this            
subparagraph74  ,if a plan amendment is 
adopted that does not meet the          
requirements of subclause 7,,iii71 the  
plan shall be treated as meeting the    
requirements of this paragraph if such  
plan satisfied such requirements        
7without regard to subclause 7,,iii77 as
 of the effective date of such          
amendment4 ,in such cases1 subclauses   
7,,ii7 and 7,,iii7 shall subsequently be
 applied by reference to the effective  
date of the plan amendment1 rather than 
by reference to the date that the class 
was closed4  7ii7 ,in addition to other 
testing methodologies otherwise         
applicable1 for purposes of determining 
compliance with this paragraph and with 

section #daj7;b7 of one or more defined 
benefit plans that meet the requirements
 of subclauses 7,i71 7,,ii71 and 7,,iii7
 of clause 7i71 such plans may be       
aggregated and tested on a benefits     
basis with the portion of one or more   
defined contribution plans that--  7,i7 
provides matching contributions 7as     
defined in subsection 7m77#d77;,a771 or 
7,,ii7 consists of an employee stock    
ownership plan within the meaning of    
section #dige7;e77#g7 or a tax credit   
employee stock ownership plan within the
 meaning of section #dji7;a74  ,for such
 purposes1 matching contributions shall 
be treated in the same manner as        
employer contributions that are made    
without regard to whether an employee   
makes an elective contribution or       
employee contribution1 including for    
purposes of applying the rules of       
subsection 7l74  7,e7 ,rules ,the       
,secretary may prescribe rules to       
prevent abuse of the plan designs       
otherwise permitted by reason of        

subparagraphs 7,b7 and 7,d74 ,such rules
 shall be directed toward abuses under  
which the defined benefit plan was      
established within a specified period   
prior to the date that--  7i7 the closed
 class of participants referred to in   
subparagraph 7,b77i71 7,b77ii71 or      
7,d77i7 is closed1 or  7ii7 the defined 
benefit plan accruals have been reduced 
or eliminated1 in the case of the       
make-whole contributions described in   
subparagraph 7,c74  7,f7 ,transition    
rules ,within #a year after the date of 
enactment of the ,retirement ,security  
,preservation ,act of #bjad1 the        
,secretary shall prescribe rules that   
facilitate the use of the provisions of 
subparagraphs 7,b7 and 7,d7 without     
regard to--  7i7 whether the closing of 
the class of participants referred to in
 such subparagraphs occurred before or  
after such date of enactment1 or  7ii7  
plan amendments that were adopted or    
effective before such date of enactment 
and that would not have been necessary  

if subparagraphs 7,b7 and 7,d7 had been 
in effect4  4  7b7 ,participation       
requirements ,paragraph 7#bf7 of section
 #dja7;a7 of the ,internal ,revenue     
,code of #aihf is amended by adding at  
the end the following new subparagraph3 
7,i7 ,protected participants ,a plan    
shall be deemed to satisfy the          
requirements of subparagraph 7,a7 if--  
7i7 the plan is amended--  7,i7 to cease
 all benefit accruals1 or  7,,ii7 to    
provide future benefit accruals only to 
a closed class of participants1 and     
7ii7 the plan satisfies subparagraph    
7,a7 7without regard to this            
subparagraph7 as of the effective date  
of the amendment4  ,the ,secretary may  
prescribe such rules as are necessary or
 appropriate to fulfill the purposes of 
this subparagraph1 including prevention 
of abuse of this subparagraph in the    
case of plans established within a      
specified period prior to the effective 
date of the amendment4  4  7c7          
,effective date ,the amendments made by 

this section shall take effect on the   
date of the enactment of this ,act1     
without regard to whether any plan      
modifications referenced in such        
amendments are adopted or effective     
before1 on1 or after such date of       
enactment4