,,ii ,calendar ,no4 #gd #aacth ,,congress #ast ,session ,s4 #iec ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ad1 #bjac ,mr4 ,reed 7for himself1 ,mr4 ,harkin1 ,mr4 ,reid1 ,mrs4 ,murray1 ,mr4 ,rockefeller1 ,ms4 ,baldwin1 ,mr4 ,schumer1 ,mr4 ,franken1 ,mr4 ,brown1 ,mr4 ,murphy1 ,mr4 ,durbin1 ,mrs4 ,gillibrand1 ,ms4 ,stabenow1 ,mr4 ,lautenberg1 ,mr4 ,whitehouse1 ,mr4 ,kaine1 ,ms4 ,warren1 and ,mr4 ,johnson of ,south ,dakota7 introduced the following bill2 which was read the first time ,may #ae1 #bjac ,read the second time and placed on the calendar ,a ,,bill ,to amend the ,higher ,education ,act of #aife to extend the reduced interest rate for undergraduate ,federal ,direct ,stafford ,loans1 to modify required distribution rules for pension plans1 to limit earnings stripping by expatriated entities1 to provide for modifications related to the ,oil ,spill ,liability ,trust ,fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,affordability ,act4 #b4 ,interest rate extension ,section #dee7;b77#g77;,d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7b77#g77;,d77 is amended-- 7#a7 in the matter preceding clause 7i71 by striking and before ,july #a1 #bjac1 and inserting and before ,july #a1 #bjae12 and 7#b7 in clause 7v71 by striking and before ,july #a1 #bjac1 and inserting and before ,july #a1 #bjae14 #c4 ,modifications of required distribution rules for pension plans 7a7 ,in general ,section #dja7;a77#i77;,b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,b7 ,required distributions where employee dies before entire interest is distributed 7i7 #e-year general rule ,a trust shall not constitute a qualified trust under this section unless the plan provides that1 if an employee dies before the distribution of the employee's interest 7whether or not such distribution has begun in accordance with subparagraph 7,a771 the entire interest of the employee will be distributed within #e years after the death of such employee4 7ii7 ,exception for eligible designated beneficiaries ,if-- 7,i7 any portion of the employee's interest is payable to 7or for the benefit of7 an eligible designated beneficiary1 7,,ii7 such portion will be distributed 7in accordance with regulations7 over the life of such eligible designated beneficiary 7or over a period not extending beyond the life expectancy of such beneficiary71 and 7,,iii7 such distributions begin not later than #a year after the date of the employee's death or such later date as the ,secretary may by regulations prescribe1 then1 for purposes of clause 7i7 and except as provided in clause 7iv7 or subparagraph 7,e77iii71 the portion referred to in subclause 7,i7 shall be treated as distributed on the date on which such distributions begin4 7iii7 ,special rule for surviving spouse of employee ,if the eligible designated beneficiary referred to in clause 7ii77,i7 is the surviving spouse of the employee-- 7,i7 the date on which the distributions are required to begin under clause 7ii77,,iii7 shall not be earlier than the date on which the employee would have attained age #gj1 and 7,,ii7 if the surviving spouse dies before the distributions to such spouse begin1 this subparagraph shall be applied as if the surviving spouse were the employee4 7iv7 ,rules upon death of eligible designated beneficiary ,if an eligible designated beneficiary dies before the portion of an employee's interest described in clause 7ii7 is entirely distributed1 clause 7ii7 shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within #e years after the death of such beneficiary4 4 7b7 ,definition of eligible designated beneficiary ,section #dja7;a77#i77;,e7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,e7 ,definitions and rules relating to designated beneficiary ,for purposes of this paragraph-- 7i7 ,designated beneficiary ,the term designated beneficiary means any individual designated as a beneficiary by the employee4 7ii7 ,eligible designated beneficiary ,the term eligible designated beneficiary means1 with respect to any employee1 any designated beneficiary who1 as of the date of death of the employee1 is-- 7,i7 the surviving spouse of the employee1 7,,ii7 subject to clause 7iii71 a child of the employee who has not reached majority 7within the meaning of subparagraph 7,f771 7,,iii7 disabled 7within the meaning of section #gb7m77#g771 7,,iv7 a chronically ill individual 7within the meaning of section #ggjb;,b7c77#b71 except that the requirements of subparagraph 7,a77i7 thereof shall only be treated as met if there is a certification that1 as of such date1 the period of inability described in such subparagraph with respect to the individual is an indefinite one that is reasonably expected to be lengthy in nature71 or 7,v7 an individual not described in any of the preceding subparagraphs who is not more than #aj years younger than the employee4 7iii7 ,special rule for children ,subject to subparagraph 7,f71 an individual described in clause 7ii77,,ii7 shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and the requirement of subparagraph 7,b77i7 shall not be treated as met with respect to any remaining portion of an employee's interest payable to the individual unless such portion is distributed within #e years after such date4 4 7c7 ,required beginning date ,section #dja7;a77#i77;,c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new clause3 7v7 ,employees becoming #e-percent owners after age #gja_/b ,if an employee becomes a #e-percent owner 7as defined in section #daf7 with respect to a plan year ending in a calendar year after the calendar year in which the employee attains age #gja_/b1 then clause 7i77,,ii7 shall be applied by substituting the calendar year in which the employee became such an owner for the calendar year in which the employee retires4 4 7d7 ,effective dates 7#a7 ,in general ,except as provided in this subsection1 the amendments made by this section shall apply to distributions with respect to employees who die after ,december #ca1 #bjac4 7#b7 ,required beginning date 7,a7 ,in general ,the amendment made by subsection 7c7 shall apply to employees becoming a #e-percent owner with respect to plan years ending in calendar years beginning before1 on1 or after the date of the enactment of this ,act4 7,b7 ,special rule ,if-- 7i7 an employee became a #e-percent owner with respect to a plan year ending in a calendar year which began before ,january #a1 #bjac1 and 7ii7 the employee has not retired before calendar year #bjad1 such employee shall be treated as having become a #e-percent owner with respect to a plan year ending in #bjac for purposes of applying section #dja7;a77#i77;,c77v7 of the ,internal ,revenue ,code of #aihf 7as added by the amendment made by subsection 7c774 7#c7 ,exception for certain beneficiaries ,if a designated beneficiary of an employee who dies before ,january #a1 #bjad1 dies after ,december #ca1 #bjac-- 7,a7 the amendments made by this section shall apply to any beneficiary of such designated beneficiary1 and 7,b7 the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section #dja7;a77#i77;,b77iv7 of such ,code 7as in effect after the amendments made by this section74 7#d7 ,exception for certain existing annuity contracts 7,a7 ,in general ,the amendments made by this section shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of the enactment of this ,act and at all times thereafter4 7,b7 ,qualified annuity contract ,for purposes of this paragraph1 the term qualified annuity means1 with respect to an employee1 an annuity-- 7i7 which is a commercial annuity 7as defined in section #cdje7;e77#f7 of such ,code7 or payable by a defined benefit plan1 7ii7 under which the annuity payments are substantially equal periodic payments 7not less frequently than annually7 over the lives of such employee and a designated beneficiary 7or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary7 in accordance with the regulations described in section #dja7;a77#i77;,a77ii7 of such ,code 7as in effect before such amendments7 and which meets the other requirements of this section #dja7;a77#i7 of such ,code 7as so in effect7 with respect to such payments1 and 7iii7 with respect to which-- 7,i7 annuity payments to the employee have begun before ,january #a1 #bjad1 and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries1 or 7,,ii7 if subclause 7,i7 does not apply1 the employee has made an irrevocable election before the date of the enactment of this ,act as to the method and amount of the annuity payments to the employee or any designated beneficiaries4 #d4 ,limitation on earnings stripping by expatriated entities 7a7 ,in general ,subsection 7j7 of section #afc of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating paragraph 7#i7 as paragraph 7#aj71 and 7#b7 by inserting after paragraph 7#h7 the following new paragraph3 7#i7 ,special rules for expatriated entities 7,a7 ,in general ,in the case of a corporation to which this subsection applies which is an expatriated entity1 this subsection shall apply to such corporation with the following modifications3 7i7 ,paragraph 7#b77;,a7 shall be applied without regard to clause 7ii7 thereof4 7ii7 ,paragraph 7#a77;,b7 shall be applied-- 7,i7 without regard to the parenthetical1 and 7,,ii7 by substituting in the #ast succeeding taxable year and in the #bnd through #ajth succeeding taxable years to the extent not previously taken into account under this subparagraph for in the succeeding taxable year4 7iii7 ,paragraph 7#b77;,b7 shall be applied-- 7,i7 without regard to clauses 7ii7 and 7iii71 and 7,,ii7 by substituting #be percent of the adjusted taxable income of the corporation for such taxable year for the matter of clause 7i77,,ii7 thereof4 7,b7 ,expatriated entity ,for purposes of this paragraph-- 7i7 ,in general ,with respect to a corporation and a taxable year1 the term expatriated entity has the meaning given such term by section #ghgd7;a77#b71 determined as if such section and the regulations under such section as in effect on the first day of such taxable year applied to all taxable years of the corporation beginning after ,july #aj1 #aihi4 7ii7 ,exception for surrogates treated as a domestic corporation ,the term expatriated entity does not include a surrogate foreign corporation which is treated as a domestic corporation by reason of section #ghgd7;b74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #e4 ,modifications related to the ,oil ,spill ,liability ,trust ,fund 7a7 ,definition of crude oil ,paragraph 7#a7 of section #dfab7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,crude oil ,the term crude oil includes crude oil condensates1 natural gasoline1 any bitumen or bituminous mixture1 and any oil derived from a bitumen or bituminous mixture4 4 7b7 ,removing restrictions relating to oil wells and extraction methods ,paragraph 7#b7 of section #dfab7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking from a well located4 7c7 ,permanent extension of oil spill liability trust fund financing rate ,section #dfaa7;f7 is amended by striking subsection 7f74 7d7 ,clerical amendment ,subclause 7,i7 of section #dfab7;e77#b77;,b77ii7 of the ,internal ,revenue ,code of #aihf is amended by striking tranferred and inserting transferred4 7e7 ,effective date ,the amendments made by subsections 7a7 and 7b7 shall apply to crude oil and petroleum products received or entered during calendar quarters beginning more than #fj days after the date of the enactment of this ,act4 #f4 ,reserving resulting surpluses for deficit reduction 7a7 ,paygo scorecard ,the budgetary effects of this ,act shall not be entered on either ,,paygo scorecard maintained pursuant to section #d7;d7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj 7#b ,u4,s4,c4 #icc7;d774 7b7 ,senate paygo scorecard ,the budgetary effects of this ,act shall not be entered on any ,,paygo scorecard maintained for purposes of section #bja of ,s4 ,con4 ,res4 #ba 7#aajth ,congress74 ,may #ae1 #bjac ,read the second time and placed on the calendar