,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #djhe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #ai1 #bjae   
,mr4 ,tib]i 7= himself1 ,mr4 ,neal1 ,mr4
 ,sessions1 ,mr4 ,re$1 & ,ms4 ,l9da ,t4 
,sn*ez ( ,cali=nia7 introduc$ ! foll[+  
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to cl>ify
 ! treatm5t ( *ur* p5sion plans1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,*ur* ,plan             
,cl>ification ,act ( #bjae4  #b4 ,*ur*  
plan cl>ification  7a7 ,application (   
controll$ gr\p rules to *ur* plans  7#a7
 ,9 g5]al ,section #dad7;c7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$--  7,a7 
by /rik+ ,= purposes & ins]t+ ! foll[+3 
7#a7 ,9 g5]al ,except z provid$ 9       
p>agraph 7#b71 = purposes  1 &  7,b7 by 
add+ at ! end ! foll[+ new p>agraph3    
7#b7 ,special rules relat+ to *ur* plans
  7,a7 ,g5]al rule ,except z provid$ 9  
subp>agraphs 7,b7 & 7,c71 = purposes (  
?is subsection & subsection 7m71 an     

organization t is o!rwise eligible to   
p>ticipate 9 a *ur* plan %all n be      
aggregat$ ) ano!r su* organization &    
treat$ z a s+le employ] ) su* o!r       
organization = a plan ye> beg9n+ 9 a    
taxable ye> unless--  7i7 "o su*        
organization provides 7directly or      
indirectly7 at lea/ #hj p]c5t ( ! op]at+
 funds = ! o!r organization dur+ !      
prec$+ tax ye> ( ! recipi5t             
organization1 &  7ii7 !re is a degree ( 
common managem5t or sup]vision betwe5 ! 
organizations su* t ! organization      
provid+ ! op]at+ funds is directly      
involv$ 9 ! day-to-day op]ations ( ! o!r
 organization4  7,b7 ,nonqualifi$       
*ur*-controll$ organizations ,not)/&+   
subp>agraph 7,a71 = purposes ( ?is      
subsection & subsection 7m71 an         
organization t is a nonqualifi$         
*ur*-controll$ organization %all be     
aggregat$ ) #a or m o!r nonqualifi$     
*ur*-controll$ organizations1 or ) an   
organization t is n exempt f tax "u     
section #eja1 & treat$ z a s+le employ] 

) su* o!r organization1 if at lea/ #hj  
p]c5t ( ! directors or tru/ees ( su* o!r
 organization are ei!r repres5tatives (1
 or directly or indirectly controll$ by1
 su* nonqualifi$ *ur*-controll$         
organization4 ,= purposes ( ?is         
subp>agraph1 ! t]m nonqualifi$          
*ur*-controll$ organization means a     
*ur*-controll$ tax-exempt organization  
describ$ 9 section #eja7;c77#c7 t is n a
 qualifi$ *ur*-controll$ organization 7z
 def9$ 9 section #caba7w77#c77;,b774    
7,c7 ,p]missive aggregation among       
*ur*-relat$ organizations ,! *ur* or    
conv5tion or association ( *ur*es ) :i* 
an organization describ$ 9 subp>agraph  
7,a7 is associat$ 7)9 ! mean+ (         
subsection 7e77#c77;,d771 or an         
organization designat$ by su* *ur* or   
conv5tion or association ( *ur*es1 may  
elect to treat su* organizations z a    
s+le employ] = a plan ye>4 ,su*         
election1 once made1 %all apply to all  
succe$+ plan ye>s unless revok$ ) notice
 provid$ to ! ,secret>y 9 su* mann] z ! 

,secret>y %all prescribe4  7,d7         
,p]missive disaggregation ( *ur*-relat$ 
organizations ,= purposes ( subp>agraph 
7,a71 9 ! case ( a *ur* plan1 an employ]
 may elect to treat *ur*es 7z def9$ 9   
section #djc7;b77#ab77;,b77 sep>ately f 
entities t are n *ur*es 7z s def9$71 )\t
 reg>d to :e!r su* entities ma9ta9      
sep>ate *ur* plans4 ,su* election1 once 
made1 %all apply to all succe$+ plan    
ye>s unless revok$ ) notice provid$ to !
 ,secret>y 9 su* mann] z ! ,secret>y    
%all prescribe4  4  7#b7 ,cl>ification  
relat+ to application ( anti-abuse rule 
,! rule ( #bf ,,cfr #a4dad7;c7-#e7;f7   
%all cont9ue to apply to ea* p>agraph ( 
section #dad7;c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf1 z am5d$ by p>agraph 7#a74
  7#c7 ,effective date ,! am5dm5ts made 
by p>agraph 7#a7 %all apply to ye>s     
beg9n+ be=e1 on1 or aft] ! date ( !     
enactm5t ( ?is ,act4  7b7 ,application (
 contribution & fund+ limitations to    
#djc7;b7 gr&fa!r$ def9$ b5efit plans    
7#a7 ,9 g5]al ,section #bea7;e77#e7 ( ! 

,tax ,equity & ,fiscal ,responsibility  
,act ( #aihb 7,public ,law #ig-bdh71 is 
am5d$--  7,a7 by /rik+ #djc7;b77#b7 &   
ins]t+ #djc7;b71 &  7,b7 by ins]t+ be=e 
! p]iod at ! end ! foll[+3 1 & %all be  
subject to ! applicable limitations (   
section #dae7;b7 ( su* ,code z if x 7 a 
def9$ b5efit plan "u section #dja7;a7 ( 
su* ,code 7& n to ! limitations (       
section #dae7;c7 ( su* ,code744  7#b7   
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to ye>s beg9n+    
be=e1 on1 or aft] ! date ( ! enactm5t ( 
?is ,act4  7c7 ,automatic enrollm5t by  
*ur* plans  7#a7 ,9 g5]al ,?is          
subsection %all sup]s$e any law ( a     
,/ate t relates to wage1 sal>y1 or      
payroll paym5t1 collection1 d$uction1   
g>ni%m5t1 assignm5t1 or )hold+ :i* w\ld 
directly or indirectly prohibit or      
re/rict ! inclusion 9 any *ur* plan 7z  
def9$ 9 section #dad7;e7 ( ! ,int]nal   
,rev5ue ,code ( #aihf7 ( an automatic   
contribution arrangem5t4  7#b7          
,def9ition ( automatic contribution     

arrangem5t ,= purposes ( ?is subsection1
 ! t]m automatic contribution arrangem5t
 means an arrangem5t-- 7,a7 "u :i* a    
p>ticipant may elect to h ! plan sponsor
 or ! employ] make paym5ts z            
contributions "u ! plan on behalf ( !   
p>ticipant1 or to ! p>ticipant directly 
9 ca%1  7,b7 "u :i* a p>ticipant is     
treat$ z hav+ elect$ to h ! plan sponsor
 or ! employ] make su* contributions 9  
an am\nt equal to a uni=m p]c5tage (    
comp5sation provid$ "u ! plan until !   
p>ticipant specifically elects n to h   
su* contributions made 7or specifically 
elects to h su* contributions made at a 
diff]5t p]c5tage71 &  7,c7 "u :i* !     
notice & election requirem5ts ( p>agraph
 7#c71 & ! inve/m5t requirem5ts (       
p>agraph 7#d71 are satisfi$4  7#c7      
,notice requirem5ts  7,a7 ,9 g5]al ,!   
plan sponsor (1 or plan adm9i/rator or  
employ] ma9ta9+1 an automatic           
contribution arrangem5t %all1 )9 a      
reasonable p]iod be=e ! fir/ day ( ea*  
plan ye>1 provide to ea* p>ticipant to  

:om ! arrangem5t applies = su* plan ye> 
notice ( ! p>ticipant's rights &        
obligations "u ! arrangem5t :i*--  7i7  
is suffici5tly accurate & compreh5sive  
to apprise ! p>ticipant ( su* rights &  
obligations1 &  7ii7 is writt5 9 a mann]
 calculat$ to be und]/ood by ! av]age   
p>ticipant to :om ! arrangem5t applies4 
7,b7 ,election requirem5ts ,a notice    
%all n be treat$ z meet+ ! requirem5ts (
 subp>agraph 7,a7 ) respect to a        
p>ticipant unless--  7i7 ! notice       
includes an explanation ( ! p>ticipant's
 "r "u ! arrangem5t n to h elective     
contributions made on ! p>ticipant's    
behalf 7or to elect to h su*            
contributions made at a diff]5t         
p]c5tage71  7ii7 ! p>ticipant has a     
reasonable p]iod ( "t1 aft] receipt ( ! 
explanation describ$ 9 clause 7i7 & be=e
 ! fir/ elective contribution is made1  
to make su* election1 &  7iii7 ! notice 
expla9s h[ contributions made "u !      
arrangem5t w be inve/$ 9 ! abs5ce ( any 
inve/m5t election by ! p>ticipant4  7#d7

 ,default inve/m5t ,if no affirmative   
inve/m5t election has be5 made ) respect
 to any automatic contribution          
arrangem5t1 contributions to su*        
arrangem5t %all be inve/$ 9 a default   
inve/m5t select$ ) ! c>e1 skill1        
prud5ce1 & dilig5ce t a prud5t p]son    
select+ an inve/m5t option w\ld use4    
7#e7 ,effective date ,?is subsection    
%all take effect on ! date ( ! enactm5t 
( ?is ,act4  7d7 ,all[ c]ta9 plan       
transf]s & m]g]s  7#a7 ,9 g5]al ,section
 #dad ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7z7 ,c]ta9 plan transf]s & 
m]g]s  7#a7 ,9 g5]al ,"u rules prescrib$
 by ! ,secret>y1 except z provid$ 9     
p>agraph 7#b71 no am\nt %all be         
includible 9 gross income by reason (-- 
7,a7 a transf] ( all or a portion ( !   
accru$ b5efit ( a p>ticipant or         
b5efici>y1 :e!r or n ve/$1 f a *ur* plan
 t is a plan describ$ 9 section #dja7;a7
 or an annuity contract describ$ 9      
section #djc7;b7 to an annuity contract 

describ$ 9 section #djc7;b71 if su* plan
 & annuity contract are bo? ma9ta9$ by !
 same *ur* or conv5tion or association (
 *ur*es1  7,b7 a transf] ( all or a     
portion ( ! accru$ b5efit ( a p>ticipant
 or b5efici>y f an annuity contract     
describ$ 9 section #djc7;b7 to a *ur*   
plan t is a plan describ$ 9 section     
#dja7;a7 or an annuity contract describ$
 9 section #djc7;b71 if su* plan &      
annuity contract are bo? ma9ta9$ by !   
same *ur* or conv5tion or association ( 
*ur*es1 or  7,c7 a m]g] ( a *ur* plan t 
is a plan describ$ 9 section #dja7;a71  
or an annuity contract describ$ 9       
section #djc7;b7 ) an annuity contract  
describ$ 9 section #djc7;b71 if su* plan
 & annuity contract are bo? ma9ta9$ by !
 same *ur* or conv5tion or association (
 *ur*es4  7#b7 ,limitation ,p>agraph    
7#a7 %all n apply to a transf] or m]g]  
unless ! p>ticipant's or b5efici>y's    
total accru$ b5efit imm$iately aft] !   
transf] or m]g] is equal to or great]   
?an ! p>ticipant's or b5efici>y's total 

accru$ b5efit imm$iately be=e ! transf] 
or m]g]1 & su* total accru$ b5efit is   
non=feitable aft] ! transf] or m]g]4    
7#c7 ,qualification ,a plan or annuity  
contract %all n fail to be consid]$ to  
be describ$ 9 sections #dja7;a7 or      
#djc7;b7 m]ely because su* plan or      
annuity contract engages 9 a transf] or 
m]g] describ$ 9 ?is subsection4  7#d7   
,def9itions ,= purposes ( ?is           
subsection3 7,a7 ,*ur* or conv5tion or  
association ( *ur*es ,! t]m *ur* or     
conv5tion or association ( *ur*es       
includes an organization describ$ 9     
subp>agraph 7,a7 or 7,b77ii7 (          
subsection 7e77#c74  7,b7 ,annuity      
contract ,! t]m annuity contract        
includes a cu/odial acc\nt describ$ 9   
section #djc7;b77#g7 & a retirem5t      
income acc\nt describ$ 9 section        
#djc7;b77#i74  7,c7 ,accru$ b5efit ,!   
t]m accru$ b5efit means-- 7i7 9 ! case (
 a def9$ b5efit plan1 ! employee's      
accru$ b5efit det]m9$ "u ! plan1 &  7ii7
 9 ! case ( a plan o!r ?an a def9$      

b5efit plan1 ! balance ( ! employee's   
acc\nt "u ! plan4  4  7#b7 ,effective   
date ,! am5dm5t made by ?is subsection  
%all apply to transf]s or m]g]s occurr+ 
aft] ! date ( ! enactm5t ( ?is ,act4    
7e7 ,inve/m5ts by *ur* plans 9          
collective tru/s  7#a7 ,9 g5]al ,9 !    
case (-- 7,a7 a *ur* plan 7z def9$ 9    
section #dad7;e7 ( ! ,int]nal ,rev5ue   
,code ( #aihf71 includ+ a plan describ$ 
9 section #dja7;a7 ( su* ,code & a      
retirem5t income acc\nt describ$ 9      
section #djc7;b77#i7 ( su* ,code1 &     
7,b7 an organization describ$ 9 section 
#dad7;e77#c77;,a7 ( su* ,code ! pr9cipal
 purpose or function ( :i* is !         
adm9i/ration ( su* a plan or acc\nt1  ! 
assets ( su* plan1 acc\nt1 or           
organization 7includ+ any assets o!rwise
 p]mitt$ to be comm+l$ = inve/m5t       
purposes ) ! assets ( su* a plan1       
acc\nt1 or organization7 may be inve/$ 9
 a gr\p tru/ o!rwise describ$ 9 ,int]nal
 ,rev5ue ,s]vice ,rev5ue ,rul+ #ha-ajj  
7z modifi$ by ,int]nal ,rev5ue ,s]vice  

,rev5ue ,rul+s #bjjd-fg1 #bjaa-a1 &     
#bjad-bd71 or any subsequ5t rev5ue rul+ 
t sup]s$es or modifies su* rev5ue rul+1 
)\t adv]sely affect+ ! tax /atus ( !    
gr\p tru/1 su* plan1 acc\nt1 or         
organization1 or any o!r plan or tru/ t 
inve/s 9 ! gr\p tru/4  7#b7 ,effective  
date ,?is subsection %all apply to      
inve/m5ts made aft] ! date ( ! enactm5t 
( ?is ,act4