,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bhee  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ah1 #bjad   
,mr4 ,c>d9 7= himself & ,mr4 ,portman7  
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d !          
nondiscrim9ation provisions ( ! ,int]nal
 ,rev5ue ,code ( #aihf to protect old]1 
long] s]vice p>ticipants4  #a4 ,%ort    
title ,?is ,act may be cit$ z !         
,retirem5t ,security ,pres]vation ,act (
 #bjad4  #b4 ,protect+ old]1 long]      
s]vice p>ticipants  7a7 ,9 g5]al        
,subsection 7a7 ( section #dja ( !      
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ ! semicolon at ! 
end ( p>agraph 7#b7 & ins]t+ 2 &1  7#b7 
by /rik+ 2 & at ! end ( p>agraph 7#c7 & 
ins]t+ a p]iod1 &  7#c7 by /rik+        
p>agraph 7#d7 & ins]t+ ! foll[+3  7#d7  
,nondiscrim9ation  7,a7 ,9 g5]al ,a tru/
 %all n con/itute a qualifi$ tru/ "u ?is
 section unless ! contributions or      
b5efits provid$ "u ! plan d n           

discrim9ate 9 favor ( highly comp5sat$  
employees 7)9 ! mean+ ( section         
#dad7q774 ,= purposes ( ?is p>agraph1   
!re %all be exclud$ f consid]ation      
employees describ$ 9 section            
#daj7;b77#c7 7,a7 & 7,c74  7,b7         
,protection ( old]1 long] s]vice        
p>ticipants  7i7 ,a def9$ b5efit plan t 
provides b5efits1 rights1 or features to
 a clos$ class ( p>ticipants %all n fail
 to satisfy ! requirem5ts ( ?is p>agraph
 by reason ( ! composition ( su* clos$  
class or ! b5efits1 rights1 or features 
provid$ to su* clos$ class1 if--  7,i7  
su* clos$ class & su* b5efits1 rights1 &
 features satisfi$ ! requirem5ts (      
subp>agraph 7,a7 7)\t reg>d to ?is      
clause7 z ( ! date t ! class 0 clos$1 & 
7,,ii7 aft] ! date z ( :i* ! class 0    
clos$1 any plan am5dm5ts t modify !     
clos$ class or ! b5efits1 rights1 &     
features provid$ to su* clos$ class     
satisfy subp>agraph 7,a7 7)\t reg>d to  
?is clause74  ,if a plan am5dm5t is     
adopt$ t does n meet ! requirem5ts (    

subclause 7,,ii71 ! plan %all be treat$ 
z meet+ ! requirem5ts ( ?is p>agraph if 
su* plan satisfi$ su* requirem5ts 7)\t  
reg>d to subclause 7,,ii77 z ( !        
effective date ( su* am5dm5t4 ,9 su*    
cases1 subclauses 7,i7 & 7,,ii7 %all    
subsequ5tly be appli$ by ref]5ce to !   
effective date ( ! plan am5dm5t1 r ?an  
by ref]5ce to ! date t ! class 0 clos$4 
7ii7 ,a def9$ contribution plan %all be 
p]mitt$ to be te/$ on a b5efits basis   
if--  7,i7 ! plan provides make-:ole    
contributions to a clos$ class (        
p>ticipants ^: def9$ b5efit plan        
accruals h be5 r$uc$ or elim9at$1       
7,,ii7 su* clos$ class ( p>ticipants    
satisfi$ section #daj7;b77#b77;,a77i7 z 
( ! date t ! class ( p>ticipants 0      
clos$1 &  7,,iii7 aft] ! date z ( :i* ! 
class 0 clos$1 any plan am5dm5ts t      
modify ! clos$ class or ! allocations1  
b5efits1 rights1 & features provid$ to  
su* clos$ class satisfy subp>agraph 7,a7
 7)\t reg>d to ?is clause74  ,if a plan 
am5dm5t is adopt$ t does n meet !       

requirem5ts ( subclause 7,,iii71 ! plan 
%all be treat$ z meet+ ! requirem5ts (  
?is p>agraph if su* plan satisfi$ su*   
requirem5ts 7)\t reg>d to subclause     
7,,iii77 z ( ! effective date ( su*     
am5dm5t4 ,9 su* cases1 subclauses 7,,ii7
 & 7,,iii7 %all subsequ5tly be appli$ by
 ref]5ce to ! effective date ( ! plan   
am5dm5t1 r ?an by ref]5ce to ! date t ! 
class 0 clos$4  7iii7 ,9 addition to o!r
 te/+ me?odologies o!rwise applicable1 =
 purposes ( det]m9+ compliance ) ?is    
p>agraph & ) section #daj7;b7 ( !       
portion ( "o or m def9$ contribution    
plans describ$ 9 clause 7ii7 t provide  
make-:ole contributions1 su* portion (  
su* plans may be aggregat$ & te/$ on a  
b5efits basis ) ! portion ( "o or m     
def9$ contribution plans t--  7,i7      
provides mat*+ contributions 7z def9$ 9 
subsection 7m77#d77;,a771 or  7,,ii7    
consi/s ( an employee /ock own]%ip plan 
)9 ! mean+ ( section #dige7;e77#g7 or a 
tax cr$it employee /ock own]%ip plan )9 
! mean+ ( section #dji7;a74  ,= su*     

purposes1 mat*+ contributions %all be   
treat$ 9 ! same mann] z employ]         
contributions t are made )\t reg>d to   
:e!r an employee makes an elective      
contribution or employee contribution1  
includ+ = purposes ( apply+ ! rules (   
subsection 7l74  7,c7 ,def9itions ,=    
purposes ( ?is p>agraph--  7i7          
,make-:ole contributions ,! t]m         
make-:ole contributions means           
allocations = ea* employee 9 ! class t  
are reasonably calculat$1 9 a consi/5t  
mann]1 to replace "s or all ( !         
retirem5t b5efits t ! employee w\ld h   
receiv$ "u ! def9$ b5efit plan & any o!r
 plan or arrangem5t if no *ange _h be5  
made to su* def9$ b5efit plan & su* o!r 
plan or arrangem5t4  7ii7 ,ref]5ces to  
clos$ class ( p>ticipants ,ref]5ces to a
 clos$ class ( p>ticipants & simil>     
ref]5ces to a clos$ class %all include  
arrangem5ts "u :i* "o or m classes (    
p>ticipants are clos$4  7,d7 ,protect+  
gr&fa!r$ p>ticipants 9 def9$ b5efit     
plans  7i7 ,a def9$ b5efit %all be      

p]mitt$ to be te/$ on a b5efits basis ) 
"o or m def9$ contribution plans if--   
7,i7 ! plan provides b5efits to a clos$ 
class ( p>ticipants1  7,,ii7 ! plan &   
su* b5efits satisfy ! requirem5ts (     
subp>agraph 7,a7 7)\t reg>d to ?is      
subp>agraph7 z ( ! date ! class 0 clos$1
 &  7,,iii7 aft] ! date z ( :i* ! class 
0 clos$1 any plan am5dm5ts t modify !   
clos$ class or ! b5efits provid$ to su* 
clos$ class satisfy subp>agraph 7,a7    
7)\t reg>d to ?is subp>agraph74  ,if a  
plan am5dm5t is adopt$ t does n meet !  
requirem5ts ( subclause 7,,iii71 ! plan 
%all be treat$ z meet+ ! requirem5ts (  
?is p>agraph if su* plan satisfi$ su*   
requirem5ts 7)\t reg>d to subclause     
7,,iii77 z ( ! effective date ( su*     
am5dm5t4 ,9 su* cases1 subclauses 7,,ii7
 & 7,,iii7 %all subsequ5tly be appli$ by
 ref]5ce to ! effective date ( ! plan   
am5dm5t1 r ?an by ref]5ce to ! date t ! 
class 0 clos$4  7ii7 ,9 addition to o!r 
te/+ me?odologies o!rwise applicable1 = 
purposes ( det]m9+ compliance ) ?is     

p>agraph & ) section #daj7;b7 ( "o or m 
def9$ b5efit plans t meet ! requirem5ts 
( subclauses 7,i71 7,,ii71 & 7,,iii7 (  
clause 7i71 su* plans may be aggregat$ &
 te/$ on a b5efits basis ) ! portion (  
"o or m def9$ contribution plans t--    
7,i7 provides mat*+ contributions 7z    
def9$ 9 subsection 7m77#d77;,a771 or    
7,,ii7 consi/s ( an employee /ock       
own]%ip plan )9 ! mean+ ( section       
#dige7;e77#g7 or a tax cr$it employee   
/ock own]%ip plan )9 ! mean+ ( section  
#dji7;a74  ,= su* purposes1 mat*+       
contributions %all be treat$ 9 ! same   
mann] z employ] contributions t are made
 )\t reg>d to :e!r an employee makes an 
elective contribution or employee       
contribution1 includ+ = purposes (      
apply+ ! rules ( subsection 7l74  7,e7  
,rules ,! ,secret>y may prescribe rules 
to prev5t abuse ( ! plan designs o!rwise
 p]mitt$ by reason ( subp>agraphs 7,b7 &
 7,d74 ,su* rules %all be direct$ t[>d  
abuses "u :i* ! def9$ b5efit plan 0     
e/abli%$ )9 a specifi$ p]iod prior to ! 

date t--  7i7 ! clos$ class (           
p>ticipants ref]r$ to 9 subp>agraph     
7,b77i71 7,b77ii71 or 7,d77i7 is clos$1 
or  7ii7 ! def9$ b5efit plan accruals h 
be5 r$uc$ or elim9at$1 9 ! case ( !     
make-:ole contributions describ$ 9      
subp>agraph 7,c74  7,f7 ,transition     
rules ,)9 #a ye> aft] ! date ( enactm5t 
( ! ,retirem5t ,security ,pres]vation   
,act ( #bjad1 ! ,secret>y %all prescribe
 rules t facilitate ! use ( ! provisions
 ( subp>agraphs 7,b7 & 7,d7 )\t reg>d   
to--  7i7 :e!r ! clos+ ( ! class (      
p>ticipants ref]r$ to 9 su* subp>agraphs
 occurr$ be=e or aft] su* date (        
enactm5t1 or  7ii7 plan am5dm5ts t 7    
adopt$ or effective be=e su* date (     
enactm5t & t w\ld n h be5 necess>y if   
subp>agraphs 7,b7 & 7,d7 _h be5 9       
effect4  4  7b7 ,p>ticipation           
requirem5ts ,p>agraph 7#bf7 ( section   
#dja7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,i7 ,protect$       
p>ticipants ,a plan %all be deem$ to    

satisfy ! requirem5ts ( subp>agraph 7,a7
 if--  7i7 ! plan is am5d$--  7,i7 to   
cease all b5efit accruals1 or  7,,ii7 to
 provide future b5efit accruals only to 
a clos$ class ( p>ticipants1 &  7ii7 !  
plan satisfies subp>agraph 7,a7 7)\t    
reg>d to ?is subp>agraph7 z ( !         
effective date ( ! am5dm5t4  ,!         
,secret>y may prescribe su* rules z are 
necess>y or appropriate to fulfill !    
purposes ( ?is subp>agraph1 includ+     
prev5tion ( abuse ( ?is subp>agraph 9 ! 
case ( plans e/abli%$ )9 a specifi$     
p]iod prior to ! effective date ( !     
am5dm5t4  4  7c7 ,effective date ,!     
am5dm5ts made by ?is section %all take  
effect on ! date ( ! enactm5t ( ?is     
,act1 )\t reg>d to :e!r any plan        
modifications ref]5c$ 9 su* am5dm5ts are
 adopt$ or effective be=e1 on1 or aft]  
su* date ( enactm5t4