,i #aafth ,,congress #ast ,session ,h4 ,r4 #ajjg ,,in ,,the ,,house ,,of ,,representatives ,february #f1 #bjai,mr4 ,kind 7for himself1 ,mr4 ,kelly of ,pennsylvania1 ,mr4 ,blumenauer1 ,ms4 ,snchez1 ,mr4 ,beyer1 ,ms4 ,judy ,chu of ,california1 ,mr4 ,higgins of ,new ,york1 ,mr4 ,holding1 ,mr4 ,kildee1 ,mr4 ,pascrell1 and ,mr4 ,larson of ,connecticut7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to encourage retirement savings1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,retirement ,enhancement and ,savings ,act of #bjai4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,title ,i--,expanding and preserving retirement savings ,sec4 #aja4 ,multiple employer plans4 ,sec4 #ajb4 ,pooled employer and multiple employer plan reporting4 ,sec4 #ajc4 ,removal of #aj percent cap from automatic enrollment safe harbor after #ast plan year4 ,sec4 #ajd4 ,rules relating to election of safe harbor #dja7k7 status4 ,sec4 #aje4 ,increase in credit limitation for small employer pension plan startup costs4 ,sec4 #ajf4 ,small employer automatic enrollment credit4 ,sec4 #ajg4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes4 ,sec4 #ajh4 ,repeal of maximum age for traditional ,,ira contributions4 ,sec4 #aji4 ,expansion of ,,ira ownership of ,s corporation bank stock4 ,sec4 #aaj4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements4 ,sec4 #aaa4 ,portability of lifetime income options4 ,sec4 #aab4 ,treatment of custodial accounts on termination of section #djc7;b7 plans4 ,sec4 #aac4 ,clarification of retirement income account rules relating to church-controlled organizations4 ,title ,,ii--,administrative improvements ,sec4 #bja4 ,plan adopted by filing due date for year may be treated as in effect as of close of year4 ,sec4 #bjb4 ,combined annual report for group of plans4 ,sec4 #bjc4 ,disclosure regarding lifetime income4 ,sec4 #bjd4 ,fiduciary safe harbor for selection of lifetime income provider4 ,sec4 #bje4 ,modification of nondiscrimination rules to protect older1 longer service participants4 ,sec4 #bjf4 ,modification of ,,pbgc premiums for ,,csec plans4 ,title ,,iii--,benefits relating to ,united ,states ,tax ,court ,sec4 #cja4 ,thrift ,savings ,plan contributions for judges in the ,federal ,employees ,retirement ,system4 ,sec4 #cjb4 ,change in vesting period for survivor annuities and waiver of vesting period in the event of assassination4 ,sec4 #cjc4 ,coordination of retirement and survivor annuity with the ,federal ,employees ,retirement ,system4 ,sec4 #cjd4 ,limit on teaching compensation of retired judges4 ,sec4 #cje4 ,general provisions relating to magistrate judges of the ,tax ,court4 ,sec4 #cjf4 ,life insurance for magistrate judges of the ,tax ,court age #fe or older4 ,sec4 #cjg4 ,retirement and annuity program4 ,sec4 #cjh4 ,provisions for recall4 ,title ,,iv--,other benefits ,sec4 #dja4 ,benefits provided to volunteer firefighters and emergency medical responders4 ,title ,v--,revenue provisions ,sec4 #eja4 ,modifications of required distribution rules for pension plans4 ,sec4 #ejb4 ,increase in penalty for failure to file4 ,sec4 #ejc4 ,increased penalties for failure to file retirement plan returns4 ,sec4 #ejd4 ,increase information sharing to administer excise taxes4 ,sec4 #eje4 ,pension variable rate premium payment acceleration4 ,i ,expanding and preserving retirement savings #aja4 ,multiple employer plans 7a7 ,qualification requirements 7#a7 ,in general ,section #dac of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7e7 ,application of qualification requirements for certain multiple employer plans with pooled plan providers 7#a7 ,in general ,except as provided in paragraph 7#b71 if a defined contribution plan to which subsection 7c7 applies-- 7,a7 is sponsored by employers all of which have both a common interest other than having adopted the plan and control of the plan1 or 7,b7 in the case of a plan not described in subparagraph 7,a71 has a pooled plan provider1 then the plan shall not be treated as failing to meet the requirements under this title applicable to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 merely because one or more employers of employees covered by the plan fail to take such actions as are required of such employers for the plan to meet such requirements4 7#b7 ,limitations 7,a7 ,in general ,paragraph 7#a7 shall not apply to any plan unless the terms of the plan provide that in cases of employers failing to take the actions described in paragraph 7#a7-- 7i7 the assets of the plan attributable to employees of the employer will be transferred to a plan maintained only by the employer 7or its successor71 to an eligible retirement plan as defined in section #djb7;c77#h77;,b7 for each individual whose account is transferred1 or to any other arrangement that the ,secretary determines is appropriate1 unless the ,secretary determines it is in the best interests of such employees to retain the assets in the plan1 and 7ii7 the employer described in clause 7i7 7and not the plan with respect to which the failure occurred or any other participating employer in such plan7 shall1 except to the extent provided by the ,secretary1 be liable for any liabilities with respect to such plan attributable to employees of the employer4 7,b7 ,failures by pooled plan providers ,if the pooled plan provider of a plan described in paragraph 7#a77;,b7 does not perform substantially all of the administrative duties which are required of the provider under paragraph 7#c77;,a77i7 for any plan year1 the ,secretary1 in the ,secretary's own discretion1 may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 shall be made in the same manner as would be made without regard to paragraph 7#a74 7#c7 ,pooled plan provider ,for purposes of this subsection-- 7,a7 ,in general ,the term pooled plan provider means1 with respect to any plan1 a person who-- 7i7 is designated by the terms of the plan as a named fiduciary 7within the meaning of section #djb7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd71 as the plan administrator1 and as the person responsible to perform all administrative duties 7including conducting proper testing with respect to the plan and employees of each participating employer7 which are reasonably necessary to ensure that-- 7,i7 the plan meets any requirement applicable under the ,employee ,retirement ,income ,security ,act of #aigd or this title to a plan described in section #dja7;a7 or to a plan that consists of individual retirement accounts described in section #djh 7including by reason of subsection 7c7 thereof71 whichever is applicable1 and 7,,ii7 each participating employer takes such actions as the ,secretary or such person determines are necessary for the plan to meet the requirements described in subclause 7,i71 including providing to such person any disclosures or other information which the ,secretary may require or which such person otherwise determines is necessary to administer the plan or to allow the plan to meet such requirements1 7ii7 registers as a pooled plan provider with the ,secretary1 and provides such other information to the ,secretary as the ,secretary may require1 before beginning operations as a pooled plan provider1 7iii7 acknowledges in writing that such person is a named fiduciary 7within the meaning of section #djb7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd71 and the plan administrator1 with respect to the plan1 and 7iv7 is responsible for ensuring that all persons who handle assets of1 or who are fiduciaries of1 the plan are bonded in accordance with section #dab of the ,employee ,retirement ,income ,security ,act of #aigd4 7,b7 ,audits1 examinations and investigations ,the ,secretary may perform audits1 examinations1 and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection4 7#d7 ,guidance 7,a7 ,in general ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this subsection1 including guidance-- 7i7 to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection1 7ii7 which describes the procedures to be taken to terminate a plan which fails to meet the requirements to be a plan described in paragraph 7#a71 including the proper treatment of1 and actions needed to be taken by1 any participating employer of the plan and the assets and liabilities of the plan with respect to employees of that employer1 and 7iii7 identifying appropriate cases to which the rules of paragraph 7#b77;,a7 will apply to employers failing to take the actions described in paragraph 7#a74 ,the ,secretary shall take into account under clause 7iii7 whether the failure of an employer or pooled plan provider to provide any disclosures or other information1 or to take any other action1 necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section #dja7;a7 or #djh1 whichever is applicable1 has continued over a period of time that clearly demonstrates a lack of commitment to compliance4 7,b7 ,prospective application ,any guidance issued by the ,secretary under this paragraph shall not apply to any action or failure occurring before the issuance of such guidance4 7#e7 ,model plan ,the ,secretary shall1 in consultation with the ,secretary of ,labor when appropriate1 publish model plan language which meets the requirements of this subsection and of paragraphs 7#dc7 and 7#dd7 of section #c of the ,employee ,retirement ,income ,security ,act of #aigd and which may be adopted in order for a plan to be treated as a plan described in paragraph 7#a77;,b74 4 7#b7 ,conforming amendment ,paragraph 7#c7 of section #dac7;b7 of such ,code is amended by striking section #dja7;a7 and inserting sections #dja7;a7 and #djh7;c74 7#c7 ,technical amendment ,subsection 7c7 of section #djh of such ,code is amended by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,there is a separate accounting for any interest of an employee or member 7or spouse of an employee or member7 in a ,roth ,,ira4 4 7b7 ,no common interest required for pooled employer plans ,section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is amended by adding at the end the following3 7,c7 ,a pooled employer plan shall be treated as-- 7i7 a single employee pension benefit plan or single pension plan2 and 7ii7 a plan to which section #baj7;a7 applies4 4 7c7 ,pooled employer plan and provider defined 7#a7 ,in general ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended by adding at the end the following3 7#dc7 ,pooled employer plan 7,a7 ,in general ,the term pooled employer plan means a plan-- 7i7 which is an individual account plan established or maintained for the purpose of providing benefits to the employees of #b or more employers2 7ii7 which is a plan described in section #dja7;a7 of the ,internal ,revenue ,code of #aihf which includes a trust exempt from tax under section #eja7;a7 of such ,code or a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof72 and 7iii7 the terms of which meet the requirements of subparagraph 7,b74 ,such term shall not include a plan with respect to which all of the participating employers have both a common interest other than having adopted the plan and control of the plan4 7,b7 ,requirements for plan terms ,the requirements of this subparagraph are met with respect to any plan if the terms of the plan-- 7i7 designate a pooled plan provider and provide that the pooled plan provider is a named fiduciary of the plan2 7ii7 designate one or more trustees meeting the requirements of section #djh7;a77#b7 of the ,internal ,revenue ,code of #aihf 7other than a participating employer7 to be responsible for collecting contributions to1 and holding the assets of1 the plan and require such trustees to implement written contribution collection procedures that are reasonable1 diligent1 and systematic2 7iii7 provide that each participating employer retains fiduciary responsibility for-- 7,i7 the selection and monitoring in accordance with section #djd7;a7 of the person designated as the pooled plan provider and any other person who1 in addition to the pooled plan provider1 is designated as a named fiduciary of the plan2 and 7,,ii7 to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section #djd7;c71 the investment and management of that portion of the plan's assets attributable to the employees of that participating employer2 7iv7 provide that a participating employer1 or a participant or beneficiary1 is not subject to unreasonable restrictions1 fees1 or penalties with regard to ceasing participation1 receipt of distributions1 or otherwise transferring assets of the plan in accordance with section #bjh or paragraph 7#dd77;,c77i77,,ii72 7v7 require-- 7,i7 the pooled plan provider to provide to participating employers any disclosures or other information which the ,secretary may require1 including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by participating employers2 and 7,,ii7 each participating employer to take such actions as the ,secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this ,act or the ,internal ,revenue ,code of #aihf to a plan described in section #dja7;a7 of such ,code or to a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof71 whichever is applicable1 including providing any disclosures or other information which the ,secretary may require or which the pooled plan provider otherwise determines is necessary to administer the plan or to allow the plan to meet such requirements2 and 7vi7 provide that any disclosure or other information required to be provided under clause 7v7 may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and participating employers4 7,c7 ,exceptions ,the term pooled employer plan does not include-- 7i7 a multiemployer plan2 or 7ii7 a plan established before the date of the enactment of the ,retirement ,enhancement and ,savings ,act of #bjai1 unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date4 7#dd7 ,pooled plan provider 7,a7 ,in general ,the term pooled plan provider means a person who-- 7i7 is designated by the terms of a pooled employer plan as a named fiduciary1 as the plan administrator1 and as the person responsible for the performance of all administrative duties 7including conducting proper testing with respect to the plan and employees of each participating employer7 which are reasonably necessary to ensure that-- 7,i7 the plan meets any requirement applicable under this ,act or the ,internal ,revenue ,code of #aihf to a plan described in section #dja7;a7 of such ,code or to a plan that consists of individual retirement accounts described in section #djh of such ,code 7including by reason of subsection 7c7 thereof71 whichever is applicable2 and 7,,ii7 each participating employer takes such actions as the ,secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause 7,i71 including providing the disclosures and information described in paragraph 7#dc77;,b77v77,,ii72 7ii7 registers as a pooled plan provider with the ,secretary1 and provides to the ,secretary such other information as the ,secretary may require1 before beginning operations as a pooled plan provider2 7iii7 acknowledges in writing that such person is a named fiduciary1 and the plan administrator1 with respect to the pooled employer plan2 and 7iv7 is responsible for ensuring that all persons who handle assets of1 or who are fiduciaries of1 the pooled employer plan are bonded in accordance with section #dab4 7,b7 ,audits1 examinations and investigations ,the ,secretary may perform audits1 examinations1 and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this paragraph and paragraph 7#dc74 7,c7 ,guidance 7i7 ,in general ,the ,secretary shall issue such guidance as the ,secretary determines appropriate to carry out this paragraph and paragraph 7#dc71 including guidance-- 7,i7 to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph2 and 7,,ii7 which requires in appropriate cases that if a participating employer fails to take the actions required under subparagraph 7,a77i77,,ii7-- 7aa7 the assets of the plan attributable to employees of the participating employer are transferred to a plan maintained only by the participating employer 7or its successor71 to an eligible retirement plan as defined in section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf for each individual whose account is transferred1 or to any other arrangement that the ,secretary determines is appropriate in such guidance2 and 7bb7 the participating employer described in item 7aa7 7and not the plan with respect to which the failure occurred or any other participating employer in such plan7 shall1 except to the extent provided in such guidance1 be liable for any liabilities with respect to such plan attributable to employees of the participating employer4 ,the ,secretary shall take into account under subclause 7,,ii7 whether the failure of an employer or pooled plan provider to provide any disclosures or other information1 or to take any other action1 necessary to administer a plan or to allow a plan to meet requirements described in subparagraph 7,a77i77,,ii7 has continued over a period of time that clearly demonstrates a lack of commitment to compliance4 ,the ,secretary may waive the requirements of subclause 7,,ii77aa7 in appropriate circumstances if the ,secretary determines it is in the best interests of the employees of the participating employer described in such clause to retain the assets in the plan with respect to which the employer's failure occurred4 7ii7 ,prospective application ,any guidance issued by the ,secretary under this subparagraph shall not apply to any action or failure occurring before the issuance of such guidance4 7,d7 ,aggregation rules ,for purposes of this paragraph-- 7i7 ,in general ,in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan1 all persons who are members of the same controlled group and who perform services for the plan shall be treated as one person4 7ii7 ,members of common group ,persons shall be treated as members of the same controlled group if such persons are treated as a single employer under subsection 7c7 or 7d7 of section #baj4 4 7#b7 ,bonding requirements for pooled employer plans ,the last sentence of section #dab7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aaab7;a77 is amended by inserting or in the case of a pooled employer plan 7as defined in section #c7dc77 after section #djg7;d77#a774 7#c7 ,conforming and technical amendments ,section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7 is amended-- 7,a7 in paragraph 7#af77;,b7-- 7i7 by striking or at the end of clause 7ii72 and 7ii7 by striking the period at the end and inserting 1 or 7iv7 in the case of a pooled employer plan1 the pooled plan provider42 and 7,b7 by striking the second paragraph 7#da74 7d7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjba4 7#b7 ,rule of construction ,nothing in the amendments made by subsection 7a7 shall be construed as limiting the authority of the ,secretary of the ,treasury or the ,secretary's delegate 7determined without regard to such amendment7 to provide for the proper treatment of a failure to meet any requirement applicable under the ,internal ,revenue ,code of #aihf with respect to one employer 7and its employees7 in a multiple employer plan4 #ajb4 ,pooled employer and multiple employer plan reporting 7a7 ,additional information ,section #ajc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7 is amended-- 7#a7 in subsection 7a77#a77;,b71 by striking applicable subsections 7d71 7e71 and 7f7 and inserting applicable subsections 7d71 7e71 7f71 and 7g72 and 7#b7 by amending subsection 7g7 to read as follows3 7g7 ,additional information with respect to pooled employer and multiple employer plans ,an annual report under this section for a plan year shall include-- 7#a7 with respect to any plan to which section #baj7;a7 applies 7including a pooled employer plan71 a list of participating employers and a good faith estimate of the percentage of total contributions made by such participating employers during the plan year2 and 7#b7 with respect to a pooled employer plan1 the identifying information for the person designated under the terms of the plan as the pooled plan provider4 4 7b7 ,simplified annual reports ,section #ajd7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7;a77 is amended by striking paragraph 7#b77;,a7 and inserting the following3 7#b7 7,a7 ,with respect to annual reports required to be filed with the ,secretary under this part1 the ,secretary may by regulation prescribe simplified annual reports for any pension plan that-- 7i7 covers fewer than #ajj participants2 or 7ii7 is a plan described in section #baj7;a7 that covers fewer than #a1jjj participants1 but only if no single participating employer has #ajj or more participants covered by the plan4 4 7c7 ,effective date ,the amendments made by this section shall apply to annual reports for plan years beginning after ,december #ca1 #bjba4 #ajc4 ,removal of #aj percent cap from automatic enrollment safe harbor after #ast plan year 7a7 ,in general ,clause 7iii7 of section #dja7k77#ac77;,c7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 does not exceed #aj percent1 and is at least and inserting and is4 7b7 ,conforming amendments 7#a7 ,subclause 7,i7 of section #dja7k77#ac77;,c77iii7 of the ,internal ,revenue ,code of #aihf 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 of such ,code is amended by striking #d percent and inserting at least #d percent4 7#c7 ,subclause 7,,iii7 of section #dja7k77#ac77;,c77iii7 of such ,code is amended by striking #e percent and inserting at least #e percent4 7#d7 ,subclause 7,,iv7 of section #dja7k77#ac77;,c77iii7 of such ,code is amended by striking #f percent and inserting at least #f percent4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjah4 #ajd4 ,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 of the ,internal ,revenue ,code of #aihf is amended by striking if such arrangement and all that follows and inserting if 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 of such ,code is amended by striking means and all that follows and inserting means 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 of the ,internal ,revenue ,code of #aihf 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 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 or paragraph 7#ac77;,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,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 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 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 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 or paragraph 7#ab77;,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,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 #bjah4 #aje4 ,increase in credit limitation for small employer pension plan startup costs 7a7 ,in general ,paragraph 7#a7 of section #de;,e7b7 of the ,internal ,revenue ,code of #aihf 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 #dad7q77 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 #bjah4 #ajf4 ,small employer automatic enrollment credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,auto-enrollment option for retirement savings options provided by small employers 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible employer1 the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to-- 7#a7 #ejj for any taxable year occurring during the credit period1 and 7#b7 zero for any other taxable year4 7b7 ,credit period ,for purposes of subsection 7a7-- 7#a7 ,in general ,the credit period with respect to any eligible employer is the #c-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement 7as defined in section #dad7w77#c77 in a qualified employer plan 7as defined in section #digb7;d77 sponsored by the employer4 7#b7 ,maintenance of arrangement ,no taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in paragraph 7#a7 is included in the plan for such year4 7c7 ,eligible employer ,for purposes of this section1 the term eligible employer has the meaning given such term in section #djh7p77#b77;,c77i74 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 in the case of an eligible employer 7as defined in section #de,t7c771 the retirement auto-enrollment credit determined under section #de,t7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de,r the following new item3 ,sec4 #de,t4 ,auto-enrollment option for retirement savings options provided by small employers4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #ajg4 ,certain taxable non-tuition fellowship and stipend payments treated as compensation for ,,ira purposes 7a7 ,in general ,paragraph 7#a7 of section #bai7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,the term compensation shall include any amount paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study44 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #ajh4 ,repeal of maximum age for traditional ,,ira contributions 7a7 ,in general ,paragraph 7#a7 of section #bai7;d7 of the ,internal ,revenue ,code of #aihf is repealed4 7b7 ,conforming amendment ,subsection 7c7 of section #djh;,a of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#d7 and by redesignating paragraphs 7#e71 7#f71 and 7#g7 as paragraphs 7#d71 7#e71 and 7#f71 respectively4 7c7 ,effective date ,the amendments made by this section shall apply to contributions made for taxable years beginning after ,december #ca1 #bjah4 #aji4 ,expansion of ,,ira ownership of ,s corporation bank stock 7a7 ,in ,general ,section #acfa7;c77#b77;,a77vi7 of the ,internal ,revenue ,code of #aihf is amended by striking 1 but only to the extent of the stock held by such trust in such bank or company as of the date of the enactment of this clause4 7b7 ,sale of ,stock in ,,ira ,relating to ,s ,corporation ,election ,exempt ,from ,prohibited ,transaction ,rules ,section #dige7;d77#af7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,b7 and by redesignating subparagraphs 7,c71 7,d71 7,e71 and 7,f7 as subparagraphs 7,b71 7,c71 7,d7 and 7,e71 respectively4 7c7 ,effective ,date ,the amendments made by this section shall take effect on ,january #a1 #bjah4 #aaj4 ,qualified employer plans prohibited from making loans through credit cards and other similar arrangements 7a7 ,in general ,paragraph 7#b7 of section #gb7p7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraph 7,d7 as subparagraph 7,e7 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 ,prohibition of loans through credit cards and other similar arrangements 7i7 ,in general ,except as provided in clause 7ii71 subparagraph 7,a7 shall not apply to any loan which is made through the use of any credit card or any other similar arrangement4 7ii7 ,exception for existing credit card systems ,clause 7i7 shall not apply to any loan to the extent such loan is provided through an electronic card system which1 as of ,september #ba1 #bjaf1 was available for use to provide loans under qualified employer plans4 7iii7 ,disallowed transactions ,if any card through which a loan is provided under the exception of clause 7ii7 is used for any transaction-- 7,i7 in an amount equal to or less than #a1jjj1 or 7,,ii7 with or on the premises of any establishment described in clause 7i71 7ii71 or 7iii7 of section #djh7;a77#ab77;,a7 of the ,social ,security ,act1 the amount of such transaction shall be treated as having been received by the individual as a distribution in accordance with subparagraph 7,a7 of paragraph 7#a74 7iv7 ,cost-of-living adjustment ,in the case of any loan made during a plan year beginning after ,december #ca1 #bjai1 the #a1jjj amount under clause 7iii77,i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the plan year begins1 determined by substituting calendar year #bjah for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the next lowest multiple of #ej4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to plan years beginning after ,december #ca1 #bjah4 7c7 ,study ,the ,comptroller ,general of the ,united ,states shall1 not later than the date which is #a year after the date of the enactment of this ,act-- 7#a7 study the impact of loans from qualified employer plans 7as defined in section #gb7p77#d77;,a7 of the ,internal ,revenue ,code of #aihf7 provided through credit cards and similar arrangements on the use of retirement savings for purposes other than funding retirement2 and 7#b7 report the results of such study to the ,committee on ,finance of the ,senate and the ,committee on ,ways and ,means of the ,house of ,representatives4 ,if the study under paragraph 7#a7 determines that such loans1 after implementation of the restrictions imposed by the amendment made by subsection 7a71 result in greater usage of retirement savings for purposes other than funding retirement than loans made by other means1 the report under paragraph 7#b7 shall include recommendations to reduce such result4 #aaa4 ,portability of lifetime income options 7a7 ,in general ,subsection 7a7 of section #dja of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 ,portability of lifetime income 7,a7 ,in general ,except as may be otherwise provided by regulations1 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 plan4 7,b7 ,definitions ,for purposes of this subsection-- 7i7 the term qualified distribution means a direct trustee-to-trustee transfer described in paragraph 7#ca77;,a7 to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b771 7ii7 the term lifetime income investment means an investment option which is designed to provide an employee with election rights-- 7,i7 which are not uniformly available with respect to other investment options under the plan1 and 7,,ii7 which are to a lifetime income feature available through a contract or other arrangement offered under the plan 7or under another eligible retirement plan 7as so defined71 if paid by means of a direct trustee-to-trustee transfer described in paragraph 7#ca77;,a7 to such other eligible retirement plan71 7iii7 the term lifetime income feature means-- 7,i7 a feature which 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 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 or contract described in subparagraph 7,b7 of section #djb7;c77#h7 7without regard to clauses 7i7 and 7ii7 thereof74 4 7b7 ,cash or deferred arrangement 7#a7 ,in general ,clause 7i7 of section #dja7k77#b77;,b7 of the ,internal ,revenue ,code of #aihf 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 the following new subclause3 7,,vi7 except as may be otherwise provided by regulations1 with respect to amounts invested in a lifetime income investment 7as defined in subsection 7a77#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 arrangement1 and 4 7#b7 ,distribution requirement ,subparagraph 7,b7 of section #dja7k77#b7 of such ,code1 as amended by paragraph 7#a71 is amended by striking and at the end of clause 7i71 by striking the semicolon at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 except as may be otherwise provided by regulations1 in the case of amounts described in clause 7i77,,vi71 will be distributed only in the form of a qualified distribution 7as defined in subsection 7a77#ch77;,b77i77 or a qualified plan distribution annuity contract 7as defined in subsection 7a77#ch77;,b77iv771 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,paragraph 7#aa7 of section #djc7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 or1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 except as may be otherwise provided by regulations1 with respect to amounts invested in a lifetime income investment 7as defined in section #dja7;a77#ch77;,b77ii77-- 7i7 on or after 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 contract1 and 7ii7 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 ,subparagraph 7,a7 of section #djc7;b77#g7 of such ,code is amended by striking if-- and all that follows and inserting if the amounts are to be invested in regulated investment company stock to be held in that custodial account1 and under the custodial account-- 7i7 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 #eia_/b1 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 except as may be otherwise provided by regulations1 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 contract1 and 7ii7 in the case of amounts described in clause 7i77,,vi71 such amounts will be distributed only 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 7#a7 ,in general ,subparagraph 7,a7 of section #deg7;d77#a7 of the ,internal ,revenue ,code of #aihf 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 except as may be otherwise provided by regulations1 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 4 7#b7 ,distribution requirement ,paragraph 7#a7 of section #deg7;d7 of such ,code is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 except as may be otherwise provided by regulations1 in the case of amounts described in subparagraph 7,a77iv71 such amounts will be distributed only 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 7e7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjah4 #aab4 ,treatment of custodial accounts on termination of section #djc7;b7 plans 7a7 ,in general ,section #djc7;b77#g7 of the ,internal ,revenue ,code of #aihf 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 amendment made by this section shall apply to plan terminations occurring after ,december #ca1 #bjah4 #aac4 ,clarification of retirement income account rules relating to church-controlled organizations 7a7 ,in general ,subparagraph 7,b7 of section #djc7;b77#i7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7including an employee described in section #dad7;e77#c77;,b77 after employee described in paragraph 7#a74 7b7 ,effective date ,the amendment made by this section shall apply to years beginning before1 on1 or after the date of the enactment of this ,act4 ,,ii ,administrative improvements #bja4 ,plan adopted by filing due date for year may be treated as in effect as of close of year 7a7 ,in general ,subsection 7b7 of section #dja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking retroactive changes in plan4--,a stock bonus and inserting plan amendments4-- 7#a7 ,certain retroactive changes in plan ,a stock bonus 2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,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 #bjah4 #bjb4 ,combined annual report for group of plans 7a7 ,in general ,the ,secretary of the ,treasury and the ,secretary of ,labor shall1 in cooperation1 modify the returns required under section #fjeh of the ,internal ,revenue ,code of #aihf and the reports required by section #ajd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbd7 so that all members of a group of plans described in subsection 7c7 may file a single aggregated annual return or report satisfying the requirements of both such sections4 7b7 ,administrative requirements ,in developing the consolidated return or report under subsection 7a71 the ,secretary of the ,treasury and the ,secretary of ,labor may require such return or report to include any information regarding each plan in the group as such ,secretaries determine is necessary or appropriate for the enforcement and administration of the ,internal ,revenue ,code of #aihf and the ,employee ,retirement ,income ,security ,act of #aigd4 7c7 ,plans described ,a group of plans is described in this subsection if all plans in the group-- 7#a7 are individual account plans or defined contribution plans 7as defined in section #c7cd7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7cd77 or in section #dad7;i7 of the ,internal ,revenue ,code of #aihf72 7#b7 have-- 7,a7 the same trustee 7as described in section #djc7;a7 of such ,act 7#bi ,u4,s4,c4 #aajc7;a7772 7,b7 the same one or more named fiduciaries 7as described in section #djb7;a7 of such ,act 7#bi ,u4,s4,c4 #aajb7;a7772 7,c7 the same administrator 7as defined in section #c7af77;,a7 of such ,act 7#bi ,u4,s4,c4 #ajjb7af77;,a777 and plan administrator 7as defined in section #dad7;g7 of the ,internal ,revenue ,code of #aihf72 and 7,d7 plan years beginning on the same date2 and 7#c7 provide the same investments or investment options to participants and beneficiaries4 ,a plan not subject to title ,i of the ,employee ,retirement ,income ,security ,act of #aigd shall be treated as meeting the requirements of paragraph 7#b7 as part of a group of plans if the same person that performs each of the functions described in such paragraph1 as applicable1 for all other plans in such group performs each of such functions for such plan4 7d7 ,clarification relating to electronic filing of returns for deferred compensation plans 7#a7 ,in general ,section #fjaa7;e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,application of numerical limitation to returns relating to deferred compensation plans ,for purposes of applying the numerical limitation under paragraph 7#b77;,a7 to any return required under section #fjeh1 information regarding each plan for which information is provided on such return shall be treated as a separate return4 4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to returns required to be filed with respect to plan years beginning after ,december #ca1 #bjah4 7e7 ,effective date ,the modification required by subsection 7a7 shall be implemented not later than ,january #a1 #bjba1 and shall apply to returns and reports for plan years beginning after ,december #ca1 #bjbj4 #bjc4 ,disclosure regarding lifetime income 7a7 ,in general ,subparagraph 7,b7 of section #aje7;a77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77#b77 is amended-- 7#a7 in clause 7i71 by striking and at the end2 7#b7 in clause 7ii71 by striking diversification4 and inserting diversification1 and2 and 7#c7 by inserting at the end the following3 7iii7 the lifetime income disclosure described in subparagraph 7,d77i74 ,in the case of pension benefit statements described in clause 7i7 of paragraph 7#a77;,a71 a lifetime income disclosure under clause 7iii7 of this subparagraph shall be required to be included in only one pension benefit statement during any one #ab-month period4 4 7b7 ,lifetime income ,paragraph 7#b7 of section #aje7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is amended by adding at the end the following new subparagraph3 7,d7 ,lifetime income disclosure 7i7 ,in general 7,i7 ,disclosure ,a lifetime income disclosure shall set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary4 7,,ii7 ,lifetime income stream equivalent of the total benefits accrued ,for purposes of this subparagraph1 the term lifetime income stream equivalent of the total benefits accrued means the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits of such participant or beneficiary were used to provide lifetime income streams described in subclause 7,,iii71 based on assumptions specified in rules prescribed by the ,secretary4 7,,iii7 ,lifetime income streams ,the lifetime income streams described in this subclause are a qualified joint and survivor annuity 7as defined in section #bje7;d771 based on assumptions specified in rules prescribed by the ,secretary1 including the assumption that the participant or beneficiary has a spouse of equal age1 and a single life annuity4 ,such lifetime income streams may have a term certain or other features to the extent permitted under rules prescribed by the ,secretary4 7ii7 ,model disclosure ,not later than #a year after the date of the enactment of the ,retirement ,enhancement and ,savings ,act of #bjai1 the ,secretary shall issue a model lifetime income disclosure1 written in a manner so as to be understood by the average plan participant1 which-- 7,i7 explains that the lifetime income stream equivalent is only provided as an illustration2 7,,ii7 explains that the actual payments under the lifetime income stream described in clause 7i77,,iii7 which may be purchased with the total benefits accrued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures2 7,,iii7 explains the assumptions upon which the lifetime income stream equivalent was determined2 and 7,,iv7 provides such other similar explanations as the ,secretary considers appropriate4 7iii7 ,assumptions and rules ,not later than #a year after the date of the enactment of the ,retirement ,enhancement and ,savings ,act of #bjai1 the ,secretary shall-- 7,i7 prescribe assumptions which administrators of individual account plans may use in converting total accrued benefits into lifetime income stream equivalents for purposes of this subparagraph2 and 7,,ii7 issue interim final rules under clause 7i74 ,in prescribing assumptions under subclause 7,i71 the ,secretary may prescribe a single set of specific assumptions 7in which case the ,secretary may issue tables or factors which facilitate such conversions71 or ranges of permissible assumptions4 ,to the extent that an accrued benefit is or may be invested in a lifetime income stream described in clause 7i77,,iii71 the assumptions prescribed under subclause 7,i7 shall1 to the extent appropriate1 permit administrators of individual account plans to use the amounts payable under such lifetime income stream as a lifetime income stream equivalent4 7iv7 ,limitation on liability ,no plan fiduciary1 plan sponsor1 or other person shall have any liability under this title solely by reason of the provision of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause 7iii7 and which include the explanations contained in the model lifetime income disclosure described in clause 7ii74 ,this clause shall apply without regard to whether the provision of such lifetime income stream equivalent is required by subparagraph 7,b77iii74 7v7 ,effective date ,the requirement in subparagraph 7,b77iii7 shall apply to pension benefit statements furnished more than #ab months after the latest of the issuance by the ,secretary of-- 7,i7 interim final rules under clause 7i72 7,,ii7 the model disclosure under clause 7ii72 or 7,,iii7 the assumptions under clause 7iii74 4 #bjd4 ,fiduciary safe harbor for selection of lifetime income provider ,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 ,safe harbor for annuity selection 7#a7 ,in general ,with respect to the selection of an insurer for a guaranteed retirement income contract1 the requirements of subsection 7a77#a77;,b7 will be deemed to be satisfied if a fiduciary-- 7,a7 engages in an objective1 thorough1 and analytical search for the purpose of identifying insurers from which to purchase such contracts2 7,b7 with respect to each insurer identified under subparagraph 7,a7-- 7i7 considers the financial capability of such insurer to satisfy its obligations under the guaranteed retirement income contract2 and 7ii7 considers the cost 7including fees and commissions7 of the guaranteed retirement income contract offered by the insurer in relation to the benefits and product features of the contract and administrative services to be provided under such contract2 and 7,c7 on the basis of such consideration1 concludes that-- 7i7 at the time of the selection1 the insurer is financially capable of satisfying its obligations under the guaranteed retirement income contract2 and 7ii7 the relative cost of the selected guaranteed retirement income contract as described in subparagraph 7,b77ii7 is reasonable4 7#b7 ,financial capability of the insurer ,a fiduciary will be deemed to satisfy the requirements of paragraphs 7#a77;,b77i7 and 7#a77;,c77i7 if-- 7,a7 the fiduciary obtains written representations from the insurer that-- 7i7 the insurer is licensed to offer guaranteed retirement income contracts2 7ii7 the insurer1 at the time of selection and for each of the immediately preceding #g plan years-- 7,i7 operates under a certificate of authority from the insurance commissioner of its domiciliary ,state which has not been revoked or suspended2 7,,ii7 has filed audited financial statements in accordance with the laws of its domiciliary ,state under applicable statutory accounting principles2 7,,iii7 maintains 7and has maintained7 reserves which satisfies all the statutory requirements of all ,states where the insurer does business2 and 7,,iv7 is not operating under an order of supervision1 rehabilitation1 or liquidation2 7iii7 the insurer undergoes1 at least every #e years1 a financial examination 7within the meaning of the law of its domiciliary ,state7 by the insurance commissioner of the domiciliary ,state 7or representative1 designee1 or other party approved by such commissioner72 and 7iv7 the insurer will notify the fiduciary of any change in circumstances occurring after the provision of the representations in clauses 7i71 7ii71 and 7iii7 which would preclude the insurer from making such representations at the time of issuance of the guaranteed retirement income contract2 and 7,b7 after receiving such representations and as of the time of selection1 the fiduciary has not received any notice described in subparagraph 7,a77iv7 and is in possession of no other information which would cause the fiduciary to question the representations provided4 7#c7 ,no requirement to select lowest cost ,nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract4 ,a fiduciary may consider the value of a contract1 including features and benefits of the contract and attributes of the insurer 7including1 without limitation1 the insurer's financial strength7 in conjunction with the cost of the contract4 7#d7 ,time of selection 7,a7 ,in general ,for purposes of this subsection1 the time of selection is-- 7i7 the time that the insurer and the contract are selected for distribution of benefits to a specific participant or beneficiary2 or 7ii7 if the fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph 7#a77;,c7 with respect to a selected insurer1 taking into account the considerations described in such paragraph1 the time that the insurer and the contract are selected to provide benefits at future dates to participants or beneficiaries under the plan4 ,nothing in the preceding sentence shall be construed to require the fiduciary to review the appropriateness of a selection after the purchase of a contract for a participant or beneficiary4 7,b7 ,periodic review ,a fiduciary will be deemed to have conducted the periodic review described in subparagraph 7,a77ii7 if the fiduciary obtains the written representations described in clauses 7i71 7ii71 and 7iii7 of paragraph 7#b77;,a7 from the insurer on an annual basis1 unless the fiduciary receives any notice described in paragraph 7#b77;,a77iv7 or otherwise becomes aware of facts that would cause the fiduciary to question such representations4 7#e7 ,limited liability ,a fiduciary which satisfies the requirements of this subsection shall not be liable following the distribution of any benefit1 or the investment by or on behalf of a participant or beneficiary pursuant to the selected guaranteed retirement income contract1 for any losses that may result to the participant or beneficiary due to an insurer's inability to satisfy its financial obligations under the terms of such contract4 7#f7 ,definitions ,for purposes of this subsection-- 7,a7 ,insurer ,the term insurer means an insurance company1 insurance service1 or insurance organization1 including affiliates of such companies4 7,b7 ,guaranteed retirement income contract ,the term guaranteed retirement income contract means an annuity contract for a fixed term or a contract 7or provision or feature thereof7 which provides guaranteed benefits annually 7or more frequently7 for at least the remainder of the life of the participant or the joint lives of the participant and the participant's designated beneficiary as part of an individual account plan4 4 #bje4 ,modification of nondiscrimination rules to protect older1 longer service participants 7a7 ,in general ,section #dja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7o7 as subsection 7p72 and 7#b7 by inserting after subsection 7n7 the following new subsection3 7o7 ,special rules for applying nondiscrimination rules ,to protect older1 longer service and grandfathered participants 7#a7 ,testing of defined benefit plans with closed classes of participants 7,a7 ,benefits1 rights1 or features provided to closed classes ,a defined benefit plan which provides benefits1 rights1 or features to a closed class of participants shall not fail to satisfy the requirements of subsection 7a77#d7 by reason of the composition of such closed class or the benefits1 rights1 or features provided to such closed class1 if-- 7i7 for the plan year as of which the class closes and the #b succeeding plan years1 such benefits1 rights1 and features satisfy the requirements of subsection 7a77#d7 7without regard to this subparagraph but taking into account the rules of subparagraph 7,i771 7ii7 after the date as of which the class was closed1 any plan amendment which modifies the closed class or the benefits1 rights1 and features provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7iii7 the class was closed before ,september #ba1 #bjaf1 or the plan is described in subparagraph 7,c74 7,b7 ,aggregate testing with defined contribution plans permitted on a benefits basis 7i7 ,in general ,for purposes of determining compliance with subsection 7a77#d7 and section #daj7;b71 a defined benefit plan described in clause 7iii7 may be aggregated and tested on a benefits basis with #a or more defined contribution plans1 including with the portion of #a or more defined contribution plans which-- 7,i7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts described in section #djc7;b7 which are purchased with matching contributions or nonelective contributions1 or 7,,iii7 consists of an employee stock ownership plan 7within the meaning of section #dige7;e77#g77 or a tax credit employee stock ownership plan 7within the meaning of section #dji7;a774 7ii7 ,special rules for matching contributions ,for purposes of clause 7i71 if a defined benefit plan is aggregated with a portion of a defined contribution plan providing matching contributions-- 7,i7 such defined benefit plan must also be aggregated with any portion of such defined contribution plan which provides elective deferrals described in subparagraph 7,a7 or 7,c7 of section #djb7;g77#c71 and 7,,ii7 such matching contributions shall be treated in the same manner as nonelective contributions1 including for purposes of applying the rules of subsection 7l74 7iii7 ,plans described ,a defined benefit plan is described in this clause if-- 7,i7 the plan provides benefits to a closed class of participants1 7,,ii7 for the plan year as of which the class closes and the #b succeeding plan years1 the plan satisfies the requirements of section #daj7;b7 and subsection 7a77#d7 7without regard to this subparagraph but taking into account the rules of subparagraph 7,i771 7,,iii7 after the date as of which the class was closed1 any plan amendment which modifies the closed class or the benefits provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7,,iv7 the class was closed before ,september #ba1 #bjaf1 or the plan is described in subparagraph 7,c74 7,c7 ,plans described ,a plan is described in this subparagraph if1 taking into account any predecessor plan-- 7i7 such plan has been in effect for at least #e years as of the date the class is closed1 and 7ii7 during the #e-year period preceding the date the class is closed1 there has not been a substantial increase in the coverage or value of the benefits1 rights1 or features described in subparagraph 7,a7 or in the coverage or benefits under the plan described in subparagraph 7,b77iii7 7whichever is applicable74 7,d7 ,determination of substantial increase for benefits1 rights1 and features ,in applying subparagraph 7,c77ii7 for purposes of subparagraph 7,a77iii71 a plan shall be treated as having had a substantial increase in coverage or value of the benefits1 rights1 or features described in subparagraph 7,a7 during the applicable #e-year period only if1 during such period-- 7i7 the number of participants covered by such benefits1 rights1 or features on the date such period ends is more than #ej percent greater than the number of such participants on the first day of the plan year in which such period began1 or 7ii7 such benefits1 rights1 and features have been modified by #a or more plan amendments in such a way that1 as of the date the class is closed1 the value of such benefits1 rights1 and features to the closed class as a whole is substantially greater than the value as of the first day of such #e-year period1 solely as a result of such amendments4 7,e7 ,determination of substantial increase for aggregate testing on benefits basis ,in applying subparagraph 7,c77ii7 for purposes of subparagraph 7,b77iii77,,iv71 a plan shall be treated as having had a substantial increase in coverage or benefits during the applicable #e-year period only if1 during such period-- 7i7 the number of participants benefiting under the plan on the date such period ends is more than #ej percent greater than the number of such participants on the first day of the plan year in which such period began1 or 7ii7 the average benefit provided to such participants on the date such period ends is more than #ej percent greater than the average benefit provided on the first day of the plan year in which such period began4 7,f7 ,certain employees disregarded ,for purposes of subparagraphs 7,d7 and 7,e71 any increase in coverage or value or in coverage or benefits1 whichever is applicable1 which is attributable to such coverage and value or coverage and benefits provided to employees-- 7i7 who became participants as a result of a merger1 acquisition1 or similar event which occurred during the #g-year period preceding the date the class is closed1 or 7ii7 who became participants by reason of a merger of the plan with another plan which had been in effect for at least #e years as of the date of the merger1 shall be disregarded1 except that clause 7ii7 shall apply for purposes of subparagraph 7,d7 only if1 under the merger1 the benefits1 rights1 or features under #a plan are conformed to the benefits1 rights1 or features of the other plan prospectively4 7,g7 ,rules relating to average benefit ,for purposes of subparagraph 7,e7-- 7i7 the average benefit provided to participants under the plan will be treated as having remained the same between the #b dates described in subparagraph 7,e77ii7 if the benefit formula applicable to such participants has not changed between such dates1 and 7ii7 if the benefit formula applicable to #a or more participants under the plan has changed between such #b dates1 then the average benefit under the plan shall be considered to have increased by more than #ej percent only if-- 7,i7 the total amount determined under section #dcj7;b77#a77;,a77i7 for all participants benefiting under the plan for the plan year in which the #e-year period described in subparagraph 7,e7 ends1 exceeds 7,,ii7 the total amount determined under section #dcj7;b77#a77;,a77i7 for all such participants for such plan year1 by using the benefit formula in effect for each such participant for the first plan year in such #e-year period1 by more than #ej percent4 ,in the case of a ,,csec plan 7as defined in section #dad7y771 the normal cost of the plan 7as determined under section #dcc7;j77#a77;,b77 shall be used in lieu of the amount determined under section #dcj7;b77#a77;,a77i74 7,h7 ,treatment as single plan ,for purposes of subparagraphs 7,e7 and 7,g71 a plan described in section #dac7;c7 shall be treated as a single plan rather than as separate plans maintained by each participating employer4 7,i7 ,special rules ,for purposes of subparagraphs 7,a77i7 and 7,b77iii77,,ii71 the following rules shall apply3 7i7 ,in applying section #daj7;b77#f77;,c71 the closing of the class of participants shall not be treated as a significant change in coverage under section #daj7;b77#f77;,c77i77,,ii74 7ii7 ,two or more plans shall not fail to be eligible to be aggregated and treated as a single plan solely by reason of having different plan years4 7iii7 ,changes in the employee population shall be disregarded to the extent attributable to individuals who become employees or cease to be employees1 after the date the class is closed1 by reason of a merger1 acquisition1 divestiture1 or similar event4 7iv7 ,aggregation and all other testing methodologies otherwise applicable under subsection 7a77#d7 and section #daj7;b7 may be taken into account4 ,the rule of clause 7ii7 shall also apply for purposes of determining whether plans to which subparagraph 7,b77i7 applies may be aggregated and treated as #a plan for purposes of determining whether such plans meet the requirements of subsection 7a77#d7 and section #daj7;b74 7,j7 ,spun-off plans ,for purposes of this paragraph1 if a portion of a defined benefit plan described in subparagraph 7,a7 or 7,b77iii7 is spun off to another employer and the spun-off plan continues to satisfy the requirements of-- 7i7 subparagraph 7,a77i7 or 7,b77iii77,,ii71 whichever is applicable1 if the original plan was still within the #c-year period described in such subparagraph at the time of the spin off1 and 7ii7 subparagraph 7,a77ii7 or 7,b77iii77,,iii71 whichever is applicable1 the treatment under subparagraph 7,a7 or 7,b7 of the spun-off plan shall continue with respect to such other employer4 7#b7 ,testing of defined contribution plans 7,a7 ,testing on a benefits basis ,a defined contribution plan shall be permitted to be tested on a benefits basis if-- 7i7 such defined contribution plan provides make-whole contributions to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated1 7ii7 for the plan year of the defined contribution plan as of which the class eligible to receive such make-whole contributions closes and the #b succeeding plan years1 such closed class of participants satisfies the requirements of section #daj7;b77#b77;,a77i7 7determined by applying the rules of paragraph 7#a77;,i771 7iii7 after the date as of which the class was closed1 any plan amendment to the defined contribution plan which modifies the closed class or the allocations1 benefits1 rights1 and features provided to such closed class does not discriminate significantly in favor of highly compensated employees1 and 7iv7 the class was closed before ,september #ba1 #bjaf1 or the defined benefit plan under clause 7i7 is described in paragraph 7#a77;,c7 7as applied for purposes of paragraph 7#a77;,b77iii77,,iv774 7,b7 ,aggregation with plans including matching contributions 7i7 ,in general ,with respect to #a or more defined contribution plans described in subparagraph 7,a71 for purposes of determining compliance with subsection 7a77#d7 and section #daj7;b71 the portion of such plans which provides make-whole contributions or other nonelective contributions may be aggregated and tested on a benefits basis with the portion of #a or more other defined contribution plans which-- 7,i7 provides matching contributions 7as defined in subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts described in section #djc7;b7 which are purchased with matching contributions or nonelective contributions1 or 7,,iii7 consists of an employee stock ownership plan 7within the meaning of section #dige7;e77#g77 or a tax credit employee stock ownership plan 7within the meaning of section #dji7;a774 7ii7 ,special rules for matching contributions ,rules similar to the rules of paragraph 7#a77;,b77ii7 shall apply for purposes of clause 7i74 7,c7 ,special rules for testing defined contribution plan features providing matching contributions to certain older1 longer service participants ,in the case of a defined contribution plan which provides benefits1 rights1 or features to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated1 the plan shall not fail to satisfy the requirements of subsection 7a77#d7 solely by reason of the composition of the closed class or the benefits1 rights1 or features provided to such closed class if the defined contribution plan and defined benefit plan otherwise meet the requirements of subparagraph 7,a7 but for the fact that the make-whole contributions under the defined contribution plan are made in whole or in part through matching contributions4 7,d7 ,spun-off plans ,for purposes of this paragraph1 if a portion of a defined contribution plan described in subparagraph 7,a7 or 7,c7 is spun off to another employer1 the treatment under subparagraph 7,a7 or 7,c7 of the spun-off plan shall continue with respect to the other employer if such plan continues to comply with the requirements of clauses 7ii7 7if the original plan was still within the #c-year period described in such clause at the time of the spin off7 and 7iii7 of subparagraph 7,a71 as determined for purposes of subparagraph 7,a7 or 7,c71 whichever is applicable4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 ,make-whole contributions ,except as otherwise provided in paragraph 7#b77;,c71 the term make-whole contributions means nonelective allocations for each employee in the class which are reasonably calculated1 in a consistent manner1 to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection 7k77#b7 if no change had been made to such defined benefit plan and such other plan or arrangement4 ,for purposes of the preceding sentence1 consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan4 7,b7 ,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 #a or more classes of participants are closed1 except that #a or more classes of participants closed on different dates shall not be aggregated for purposes of determining the date any such class was closed4 7,c7 ,highly compensated employee ,the term highly compensated employee has the meaning given such term in section #dad7q74 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 7i7 ,in general ,a plan shall be deemed to satisfy the requirements of subparagraph 7,a7 if-- 7,i7 the plan is amended-- 7aa7 to cease all benefit accruals1 or 7bb7 to provide future benefit accruals only to a closed class of participants1 7,,ii7 the plan satisfies subparagraph 7,a7 7without regard to this subparagraph7 as of the effective date of the amendment1 and 7,,iii7 the amendment was adopted before ,september #ba1 #bjaf1 or the plan is described in clause 7ii74 7ii7 ,plans described ,a plan is described in this clause if the plan would be described in subsection 7o77#a77;,c71 as applied for purposes of subsection 7o77#a77;,b77iii77,,iv7 and by treating the effective date of the amendment as the date the class was closed for purposes of subsection 7o77#a77;,c74 7iii7 ,special rules ,for purposes of clause 7i77,,ii71 in applying section #daj7;b77#f77;,c71 the amendments described in clause 7i7 shall not be treated as a significant change in coverage under section #daj7;b77#f77;,c77i77,,ii74 7iv7 ,spun-off plans ,for purposes of this subparagraph1 if a portion of a plan described in clause 7i7 is spun off to another employer1 the treatment under clause 7i7 of the spun-off plan shall continue with respect to the other employer4 4 7c7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 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 referred to in such amendments are adopted or effective before1 on1 or after such date of enactment4 7#b7 ,special rules 7,a7 ,election of earlier application ,at the election of the plan sponsor1 the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjac4 7,b7 ,closed classes of participants ,for purposes of paragraphs 7#a77;,a77iii71 7#a77;,b77iii77,,iv71 and 7#b77;,a77iv7 of section #dja7o7 of the ,internal ,revenue ,code of #aihf 7as added by this section71 a closed class of participants shall be treated as being closed before ,september #ba1 #bjaf1 if the plan sponsor's intention to create such closed class is reflected in formal written documents and communicated to participants before such date4 7,c7 ,certain post-enactment plan amendments ,a plan shall not be treated as failing to be eligible for the application of section #dja7o77#a77;,a71 #dja7o77#a77;,b77iii71 or #dja7;a77#bf7 of such ,code 7as added by this section7 to such plan solely because in the case of-- 7i7 such section #dja7o77#a77;,a71 the plan was amended before the date of the enactment of this ,act to eliminate #a or more benefits1 rights1 or features1 and is further amended after such date of enactment to provide such previously eliminated benefits1 rights1 or features to a closed class of participants1 or 7ii7 such section #dja7o77#a77;,b77iii7 or section #dja7;a77#bf71 the plan was amended before the date of the enactment of this ,act to cease all benefit accruals1 and is further amended after such date of enactment to provide benefit accruals to a closed class of participants4 ,any such section shall only apply if the plan otherwise meets the requirements of such section and in applying such section1 the date the class of participants is closed shall be the effective date of the later amendment4 #bjf4 ,modification of ,,pbgc premiums for ,,csec plans 7a7 ,flat rate premium ,subparagraph 7,a7 of section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is amended-- 7#a7 in clause 7i71 by striking plan1 and inserting plan other than a ,,csec plan 7as defined in section #baj7;f77#a772 7#b7 in clause 7v71 by striking or at the end2 7#c7 in clause 7vi71 by striking the period at the end and inserting 1 or2 and 7#d7 by adding at the end the following new clause3 7vii7 in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 for plan years beginning after ,december #ca1 #bjag1 for each individual who is a participant in such plan during the plan year an amount equal to the sum of-- 7,i7 the additional premium 7if any7 determined under subparagraph 7,e71 and 7,,ii7 #ai4 4 7b7 ,variable rate premium 7#a7 ,unfunded vested benefits 7,a7 ,in general ,subparagraph 7,e7 of section #djjf7;a77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is amended by adding at the end the following new clause3 7v7 ,for purposes of clause 7ii71 in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 the term unfunded vested benefits means1 for plan years beginning after ,december #ca1 #bjag1 the excess 7if any7 of-- 7,i7 the funding liability of the plan as determined under section #cjf7;j77#e77;,c7 for the plan year by only taking into account vested benefits1 over 7,,ii7 the fair market value of plan assets for the plan year which are held by the plan on the valuation date4 4 7,b7 ,conforming amendment ,clause 7iii7 of section #djjf7;a77#c77;,e7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77 is amended by striking ,for purposes and inserting ,except as provided in clause 7v71 for purposes4 7#b7 ,applicable dollar amount 7,a7 ,in general ,paragraph 7#h7 of section #djjf7;a7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77 is amended by adding at the end the following new subparagraph3 7,e7 ,,csec plans ,in the case of a ,,csec plan 7as defined in section #baj7;f77#a771 the applicable dollar amount shall be #i4 4 7,b7 ,conforming amendment ,subparagraph 7,a7 of section #djjf7;a77#h7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77#h77 is amended by striking 7,b7 and 7,c7 and inserting 7,b71 7,c71 and 7,e74 ,,iii ,benefits relating to ,united ,states ,tax ,court #cja4 ,thrift ,savings ,plan contributions for judges in the ,federal ,employees ,retirement ,system 7a7 ,in general ,subsection 7j77#c77;,b7 of section #gddg of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,b7 ,contributions for benefit of judge ,no contributions under section #hdcb7;c7 of title #e1 ,united ,states ,code1 shall be made for the benefit of a judge who has filed an election to receive retired pay under subsection 7e74 4 7b7 ,offset ,paragraph 7#c7 of section #gddg7;j7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,f7 ,offset ,in the case of a judge who receives a distribution from the ,thrift ,savings ,plan and who later receives retired pay under subsection 7d71 the retired pay shall be offset by an amount equal to the amount of the distribution which represents the ,government's contribution to the individual's ,thrift ,savings ,account during years of service as a full-time judicial officer under the ,federal ,employees ,retirement ,system1 without regard to earnings attributable to such amount4 ,where such an offset would exceed #ej percent of the retired pay to be received in the first year1 the offset may be divided equally over the first #b years in which the individual receives the annuity4 4 7c7 ,effective date ,the amendments made by this section shall apply to basic pay earned while serving as a judge of the ,united ,states ,tax ,court on or after the date of the enactment of this ,act4 #cjb4 ,change in vesting period for survivor annuities and waiver of vesting period in the event of assassination 7a7 ,eligibility in case of death by assassination ,subsection 7h7 of section #gddh of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7h7 ,entitlement to annuity 7#a7 ,in general 7,a7 ,annuity to surviving spouse ,if a judge or magistrate judge of the ,tax ,court described in paragraph 7#b7 is survived by a surviving spouse but not by a dependent child1 there shall be paid to such surviving spouse an annuity beginning with the day of the death of the judge or magistrate judge of the ,tax ,court or following the surviving spouse's attainment of age #ej1 whichever is the later1 in an amount computed as provided in subsection 7m74 7,b7 ,annuity to surviving spouse and child ,if a judge or magistrate judge of the ,tax ,court described in paragraph 7#b7 is survived by a surviving spouse and dependent child or children1 there shall be paid to such surviving spouse an annuity1 beginning on the day of the death of the judge or magistrate judge of the ,tax ,court1 in an amount computed as provided in subsection 7m71 and there shall also be paid to or on behalf of each such child an immediate annuity equal to the lesser of-- 7i7 #aj percent of the average annual salary of such judge or magistrate judge of the ,tax ,court 7determined in accordance with subsection 7m771 or 7ii7 #bj percent of such average annual salary1 divided by the number of such children4 7,c7 ,annuity to surviving dependent children ,if a judge or magistrate judge of the ,tax ,court described in paragraph 7#b7 leaves no surviving spouse but leaves a surviving dependent child or children1 there shall be paid to or on behalf of each such child an immediate annuity equal to the lesser of-- 7i7 #bj percent of the average annual salary of such judge or magistrate judge of the ,tax ,court 7determined in accordance with subsection 7m771 or 7ii7 #dj percent of such average annual salary divided by the number of such children4 7#b7 ,covered judges ,paragraph 7#a7 applies to any judge or magistrate judge of the ,tax ,court electing under subsection 7b7-- 7,a7 who dies while a judge or magistrate judge of the ,tax ,court after having rendered at least #ah months of civilian service computed as prescribed in subsection 7n71 for the last #ah months of which the salary deductions provided for by subsection 7c77#a7 or the deposits required by subsection 7d7 have actually been made or the salary deductions required by the civil service retirement laws have actually been made1 or 7,b7 who dies by assassination after having rendered less than #ah months of civilian service computed as prescribed in subsection 7n7 if1 for the period of such service1 the salary deductions provided for by subsection 7c77#a7 or the deposits required by subsection 7d7 have actually been made4 7#c7 ,termination of annuity 7,a7 ,surviving spouse ,the annuity payable to a surviving spouse under this subsection shall be terminable upon such surviving spouse's death or such surviving spouse's remarriage before attaining age #ee4 7,b7 ,surviving child ,any annuity payable to a child under this subsection shall be terminable upon the earliest of-- 7i7 the child attainment of age #ah1 7ii7 the child's marriage1 or 7iii7 the child's death1 except that if such child is incapable of self-support by reason of mental or physical disability the child's annuity shall be terminable only upon death1 marriage1 or recovery from such disability4 7,c7 ,dependent child after death of surviving spouse ,in case of the death of a surviving spouse of a judge or magistrate judge of the ,tax ,court leaving a dependent child or children of the judge or magistrate judge of the ,tax ,court surviving such spouse1 the annuity of such child or children shall be recomputed and paid as provided in paragraph 7#a77;,c74 7,d7 ,recomputation with respect to other dependent children ,in any case in which the annuity of a dependent child is terminated under this subsection1 the annuities of any remaining dependent child or children based upon the service of the same judge or magistrate judge of the ,tax ,court shall be recomputed and paid as though the child whose annuity was so terminated had not survived such judge4 7,e7 ,special rule for assassinated judges ,in the case of a survivor of a judge or magistrate judge of the ,tax ,court described in paragraph 7#b77;,b71 there shall be deducted from the annuities otherwise payable under this section an amount equal to the amount of salary deductions that would have been made if such deductions had been made for #ah months prior to the death of the judge or magistrate judge of the ,tax ,court4 4 7b7 ,definition of assassination ,section #gddh7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#aj7 ,the terms assassinated and assassination mean the killing of a judge or magistrate judge of the ,tax ,court that is motivated by the performance by the judge or magistrate judge of the ,tax ,court of his or her official duties4 4 7c7 ,determination of assassination ,subsection 7i7 of section #gddh of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking of dependency and disability4--,questions and inserting by chief judge4-- 7#a7 ,dependency and disability ,questions 2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,assassination ,the chief judge shall determine whether the killing of a judge or magistrate judge of the ,tax ,court was an assassination1 subject to review only by the ,tax ,court4 ,the head of any ,federal agency that investigates the killing of a judge or magistrate judge of the ,tax ,court shall provide to the chief judge any information that would assist the chief judge in making such a determination4 4 7d7 ,computation of annuities ,subsection 7m7 of section #gddh of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking annuities4--,the annuity and inserting annuities4-- 7#a7 ,in general ,the annuity 2 7#b7 by striking the sum of 7#a7 #a4e percent and inserting the sum of-- 7,a7 #a4e percent 2 7#c7 by striking and 7#b7 three-fourths of #a percent and inserting and 7,b7 three-fourths of #a percent 2 7#d7 by striking prior allowable service1 except that and inserting prior allowable service1 except that 2 and 7#e7 by adding at the end the following new paragraph3 7#b7 ,assassinated judges and magistrate judges of the tax court ,in the case of a judge or magistrate judge of the ,tax ,court who is assassinated and who has served less than #ah months1 the annuity of the surviving spouse of such judge or magistrate judge of the ,tax ,court shall be based upon the average annual salary received by such judge or magistrate judge of the ,tax ,court for judicial service4 4 7e7 ,other benefits ,section #gddh of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7u7 ,other benefits in case of assassination ,in the case of a judge or magistrate judge of the ,tax ,court who is assassinated1 an annuity shall be paid under this section notwithstanding a survivor's eligibility for or receipt of benefits under chapter #ha of title #e1 ,united ,states ,code1 except that the annuity for which a surviving spouse is eligible under this section shall be reduced to the extent that the total benefits paid under this section and chapter #ha of that title for any year would exceed the current salary for that year of the office of the judge or magistrate judge of the ,tax ,court4 4 #cjc4 ,coordination of retirement and survivor annuity with the ,federal ,employees ,retirement ,system 7a7 ,retirement ,section #gddg of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking section #hcca7h7 in subsection 7g77#b77;,c7 and inserting sections #hcca7h7 and #hdja7ai72 and 7#b7 by striking ,civil ,service ,commission both places it appears in subsection 7i77#b7 and inserting ,office of ,personnel ,management4 7b7 ,annuities to surviving spouses and dependent children ,section #gddh of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking section #hccb in subsection 7d7 and inserting sections #hccb and #hdaa2 and 7#b7 by striking section #hccb in subsection 7n7 and inserting sections #hccb and #hdaa4 #cjd4 ,limit on teaching compensation of retired judges 7a7 ,in general ,section #gddg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7k7 ,teaching compensation of retired judges ,for purposes of the limitation under section #eja7;a7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app471 any compensation for teaching approved under section #ejb7;a77#e7 of such ,act shall not be treated as outside earned income when received by a judge of the ,united ,states ,tax ,court who has retired under subsection 7b7 for teaching performed during any calendar year for which such a judge has met the requirements of subsection 7c71 as certified by the chief judge4 4 7b7 ,effective date ,the amendment made by this section shall apply to any individual serving as a retired judge of the ,united ,states ,tax ,court on or after the date of the enactment of this ,act4 #cje4 ,general provisions relating to magistrate judges of the ,tax ,court 7a7 ,title of special trial judge changed to magistrate judge of the ,tax ,court ,the heading of section #gddc;,a of the ,internal ,revenue ,code of #aihf is amended by striking ,special trial judges and inserting ,magistrate judges of the ,tax ,court4 7b7 ,appointment1 tenure1 and removal ,subsection 7a7 of section #gddc;,a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,appointment1 tenure1 and removal 7#a7 ,appointment ,the chief judge may1 from time to time1 appoint and reappoint magistrate judges of the ,tax ,court for a term of #h years4 ,the magistrate judges of the ,tax ,court shall proceed under such rules as may be promulgated by the ,tax ,court4 7#b7 ,removal 7,a7 ,in general ,except as provided in subparagraph 7,b71 removal of a magistrate judge of the ,tax ,court during the term for which such magistrate judge is appointed shall be only for incompetency1 misconduct1 neglect of duty1 or physical or mental disability4 ,removal shall not occur unless a majority of all the judges of the ,tax ,court concur in the order of removal4 ,before any order of removal shall be entered1 a full specification of the charges shall be furnished to the magistrate judge of the ,tax ,court1 and such magistrate judge shall be accorded by the judges of the ,tax ,court an opportunity to be heard on the charges4 7,b7 ,termination of office ,the office of a magistrate judge of the ,tax ,court shall be terminated if the judges of the ,tax ,court determine that the services performed by such magistrate judge of the ,tax ,court are no longer needed4 4 7c7 ,salary ,subsection 7d7 of section #gddc;,a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7d7 ,salary ,each magistrate judge of the ,tax ,court shall receive salary-- 7#a7 at a rate equal to #ib percent of the rate for judges of the ,tax ,court1 and 7#b7 in the same installments as such judges4 4 7d7 ,exemption from ,federal leave provisions ,section #gddc;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,exemption from ,federal leave provisions 7#a7 ,in general ,a magistrate judge of the ,tax ,court shall be exempt from the provisions of subchapter ,i of chapter #fc of title #e1 ,united ,states ,code4 7#b7 ,treatment of unused leave 7,a7 ,after service as magistrate judge of the ,tax ,court ,if an individual who is exempted under paragraph 7#a7 from the subchapter referred to in such paragraph was previously subject to such subchapter and1 without a break in service1 again becomes subject to such subchapter on completion of the individual's service as a magistrate judge of the ,tax ,court1 the unused annual leave and sick leave standing to the individual's credit at the time such individual became a magistrate judge of the ,tax ,court is deemed to have remained to the individual's credit4 7,b7 ,computation of annuity ,in computing an annuity under section #hcci or #hdae of title #e1 ,united ,states ,code1 the total service of an individual specified in subparagraph 7,a7 who retires on an immediate annuity or dies leaving a survivor or survivors entitled to an annuity includes1 without regard to the limitations imposed by subsection 7f7 of section #hcci of such title #e1 the days of unused sick leave standing to the individual's credit at the time such individual became a magistrate judge of the ,tax ,court1 except that such days will not be counted in determining average pay or annuity eligibility4 7,c7 ,lump sum payment ,any accumulated and current accrued annual leave or vacation balances credited to a magistrate judge of the ,tax ,court as of the date of the enactment of this subsection shall be paid in a lump sum at the time of separation from service pursuant to the provisions and restrictions set forth in section #eeea of such title #e and related provisions referred to in such section4 4 7e7 ,contempt authority ,section #gddc;,a of the ,internal ,revenue ,code of #aihf1 as amended by this section1 is amended by adding at the end the following new subsection3 7g7 ,incidental powers ,a magistrate judge of the ,tax ,court appointed under this section shall have the power to punish for contempt of the authority of the ,tax ,court as provided in section #gdef7;c71 except the sentence imposed by such a magistrate judge of the ,tax ,court for any contempt shall not exceed the penalties for a ,class ,c misdemeanor as set forth in sections #cega7;b77#f7 and #ceha7;b77#h7 of title #ah1 ,united ,states ,code4 ,this subsection shall not be construed to limit the authority of a magistrate judge of the ,tax ,court to order sanctions under any other statute or any rule of the ,tax ,court prescribed pursuant to section #gdec4 4 7f7 ,conforming amendments 7#a7 ,the heading of subsection 7b7 of section #gddc;,a of the ,internal ,revenue ,code of #aihf is amended by striking ,special trial judges and inserting ,magistrate judges of the ,tax ,court4 7#b7 ,subsection 7b7 of section #gddc;,a of such ,code is amended by striking special trial judges of the court and inserting magistrate judges of the ,tax ,court4 7#c7 ,subsection 7c7 of section #gddc;,a of such ,code is amended by striking special trial judge and inserting magistrate judge of the ,tax ,court4 7#d7 ,subsection 7e7 of section #gddc;,a of such ,code is amended by striking special trial judges and inserting magistrate judges of the ,tax ,court4 7#e7 ,the item relating to section #gddc;,a in the table of sections for part ,i of subchapter ,c of chapter #gf of such ,code is amended to read as follows3 ,sec4 #gddc;,a4 ,magistrate judges of the ,tax ,court4 4 7#f7 ,the heading of section #gddh of such ,code is amended by striking ,special trial judges and inserting ,magistrate judges of the ,tax ,court4 7#g7 ,section #gddh of such ,code is amended-- 7,a7 by striking special trial judge's each place it appears in subsections 7a77#f71 7c77#a71 7d71 and 7m77#a7 and inserting magistrate judge of the ,tax ,court's2 and 7,b7 by striking special trial judge each place it appears other than in subsection 7n7 and inserting magistrate judge of the ,tax ,court4 7#h7 ,subsection 7n7 of section #gddh of such ,code is amended to read as follows3 7n7 ,includible service ,subject to the provisions of subsection 7d71 the years of service of a judge or magistrate judge of the ,tax ,court which are allowable as the basis for calculating the amount of the annuity of such judge or magistrate judge's surviving spouse shall include the judge or magistrate judge's years of service-- 7#a7 as a judge or magistrate judge of the ,tax ,court1 a special trial judge of the ,tax ,court1 or a judge of the ,tax ,court of the ,united ,states1 7#b7 pursuant to any appointment under section #gddc;,a1 7#c7 as a ,senator1 ,representative1 ,delegate1 or ,resident ,commissioner in ,congress1 7#d7 as a member of the ,armed ,forces of the ,united ,states 7not including any service for which credit is allowed for purposes of retirement or retired pay under any other provision of law71 and 7#e7 in any other civilian service within the purview of section #hccb of title #e1 ,united ,states ,code4 ,for purposes of paragraph 7#d71 not more than #e years of service shall be taken into account4 4 7#i7 ,the item relating to section #gddh in the table of sections for part ,i of subchapter ,c of chapter #gf of such ,code is amended to read as follows3 ,sec4 #gddh4 ,annuities to surviving spouses and dependent children of judges and magistrate judges of the ,tax ,court4 4 7#aj7 ,subsection 7a7 of section #gdef of such ,code is amended-- 7,a7 by striking special trial judge each place it appears and inserting magistrate judge2 and 7,b7 by striking 7or by the clerk and inserting of the ,tax ,court 7or by the clerk4 7#aa7 ,subsection 7a7 of section #gdff of such ,code is amended by striking special trial judge and inserting magistrate judge4 7#ab7 ,section #gdgj;,a of such ,code is amended by striking special trial judges both places it appears in subsections 7a7 and 7b7 and inserting magistrate judges4 7#ac7 ,subparagraph 7,a7 of section #gdga7;a77#b7 of such ,code is amended by striking special trial judges and inserting magistrate judges4 7#ad7 ,subsection 7c7 of section #gdga of such ,code is amended-- 7,a7 by striking ,special trial judges in the heading and inserting ,magistrate judges of the ,tax ,court2 and 7,b7 by striking special trial judges and inserting magistrate judges4 7g7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to individuals serving as special trial judges of the ,united ,states ,tax ,court on or after the day before the date of enactment of this ,act4 7#b7 ,appointment savings provision ,any individual serving as a special trial judge of the ,united ,states ,tax ,court as of the day before the date of the enactment of this ,act shall be considered to have been appointed as a magistrate judge of the ,tax ,court under section #gddc;,a of the ,internal ,revenue ,code of #aihf on such date of enactment1 and service as a special trial judge of the ,tax ,court before such date of enactment shall be considered to be service as a magistrate judge of the ,tax ,court for purposes of any provision of law relating to length of service4 #cjf4 ,life insurance for magistrate judges of the ,tax ,court age #fe or older ,section #gdgb of the ,internal ,revenue ,code of #aihf is amended by striking its judges in the second sentence and inserting the judges and magistrate judges of the ,tax ,court4 #cjg4 ,retirement and annuity program 7a7 ,retirement and annuity program ,part ,i of subchapter ,c of chapter #gf of the ,internal ,revenue ,code of #aihf is amended by inserting after section #gddc;,a the following new section3 #gddc;,b4 ,retirement for magistrate judges of the ,tax ,court 7a7 ,retirement 7#a7 ,in general ,each magistrate judge of the ,tax ,court who makes an election under this section shall receive an annuity at the same rate and in the same manner as magistrate judges of the district courts of the ,united ,states pursuant to section #cgg of title #bh1 ,united ,states ,code4 7#b7 ,rules of application ,for purposes of subsection 7a71 section #cgg of title #bh1 ,united ,states ,code1 shall be applied with the following modifications3 7,a7 ,by substituting-- 7i7 magistrate judge of the ,tax ,court for judicial official1 judicial officer1 and magistrate judge each place such terms appear1 7ii7 magistrate judge of the ,tax ,court's for magistrate judge's each place it appears1 7iii7 chief judge of the ,tax ,court for ,administrative ,office of the ,united ,states ,courts1 ,director of the ,administrative ,office of the ,united ,states ,courts1 ,director1 and chief judge of the district court each place such terms appear1 7iv7 ,tax ,court ,judicial ,officers' ,retirement ,fund for ,judicial ,officers' ,retirement ,fund each place it appears1 7v7 under section #gddc;,a of the ,internal ,revenue ,code of #aihf for under section #fca of this title in subsection 7h77#b71 7vi7 under section #gddc;,c of the ,internal ,revenue ,code of #aihf for under section #aee7;b71 #cge1 or #fcf7;h7 of this title each place it appears in paragraphs 7#b7 and 7#c7 of subsection 7m71 and 7vii7 from the date of appointment1 for those individuals appointed pursuant to section #gddc;,a of the ,internal ,revenue ,code of #aihf prior to1 and in active service on1 the date of enactment of the ,retirement ,enhancement and ,savings ,act of #bjai for on or after ,october #a1 #aigi in subsection 7h74 7,b7 ,by disregarding subsection 7m77#b7 and subsection 7o74 7b7 #a-,year forfeiture for failure ,to perform judicial duties ,subject to subparagraph 7,b7 of section #cgg7m77#a7 of title #bh1 ,united ,states ,code1 any magistrate judge of the ,tax ,court who retires under this section and who fails to perform judicial duties required of such individual by section #gddc;,c shall forfeit all rights to an annuity under this section for a #a-year period which begins on the #ast day on which such individual fails to perform such duties4 7c7 ,tax ,court ,judicial ,officers' ,retirement ,fund 7#a7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund which shall be known as the ,tax ,court ,judicial ,officers' ,retirement ,fund4 ,the ,fund is appropriated for the payment of annuities1 refunds1 and other payments under this section4 7#b7 ,investment of ,fund ,the ,secretary shall invest1 in interest-bearing securities of the ,united ,states1 such currently available portions of the ,tax ,court ,judicial ,officers' ,retirement ,fund as are not immediately required for payments from the ,fund4 ,the income derived from these investments constitutes a part of the ,fund4 7#c7 ,unfunded liability 7,a7 ,in general ,not later than the close of each fiscal year1 there shall be deposited in the ,tax ,court ,judicial ,officers' ,retirement ,fund amounts required to reduce to zero the unfunded liability1 if any1 of such ,fund4 7,b7 ,unfunded liability ,for purposes of subparagraph 7,a71 the term unfunded liability means the amount estimated by the ,secretary to be equal to the excess 7as of the close of the fiscal year involved7 of-- 7i7 the present value of all benefits payable from the ,tax ,court ,judicial ,officers' ,retirement ,fund1 over 7ii7 the sum of-- 7,i7 the present value of future deductions to be withheld under this section from the basic pay of magistrate judges of the ,tax ,court1 plus 7,,ii7 the balance in such ,fund as of the close of such fiscal year4 7d7 ,participation in ,thrift ,savings ,plan 7#a7 ,election to contribute ,a magistrate judge of the ,tax ,court may elect to contribute out of such individual's basic pay to the ,thrift ,savings ,fund established by section #hdcg of title #e1 ,united ,states ,code4 7#b7 ,applicability of title #e provisions ,except as otherwise provided in this subsection1 the provisions of subchapters ,,iii and ,,vii of chapter #hd of such title #e shall apply with respect to a magistrate judge of the ,tax ,court who makes an election under paragraph 7#a74 7#c7 ,special rules 7,a7 ,amount contributed ,the amount contributed by a magistrate judge of the ,tax ,court to the ,thrift ,savings ,plan in any pay period shall not exceed the maximum percentage of such magistrate judge's basic pay for such period as allowable under section #hddj;f of such title #e4 7,b7 ,contributions for benefit of magistrate judge of the ,tax ,court ,no contributions under section #hdcb7;c7 of such title #e shall be made for the benefit of a magistrate judge of the ,tax ,court who has filed an election to receive an annuity under this section4 7,c7 ,applicability of rules relating to annuity of a child ,section #hdcc7;b7 of such title #e applies with respect to a magistrate judge of the ,tax ,court who makes an election under paragraph 7#a7 and who-- 7i7 retires entitled to an immediate annuity under this section 7including a disability annuity under this section71 7ii7 retires before attaining age #fe but is entitled1 upon attaining age #fe1 to an annuity under this section1 or 7iii7 retires before becoming entitled to an immediate annuity1 or an annuity upon attaining age #fe1 under this section4 7,d7 ,retirement as separation from service ,with respect to a magistrate judge of the ,tax ,court to whom this subsection applies1 retirement under this section is a separation from service for purposes of subchapters ,,iii and ,,vii of chapter #hd of such title #e4 7#d7 ,definitions ,for purposes of this subsection1 the terms retirement and retire include removal from office under section #gddc;,a7a77#b7 on the sole ground of mental or physical disability4 7#e7 ,offset ,in the case of a magistrate judge of the ,tax ,court who receives a distribution from the ,thrift ,savings ,plan and who later receives an annuity under this section1 the annuity shall be offset by an amount equal to the amount which represents the ,government's contribution to the individual's ,thrift ,savings ,account during years of service as a full-time judicial officer under the ,federal ,employees ,retirement ,system1 without regard to earnings attributable to such amount4 ,where such an offset would exceed #ej percent of the annuity to be received in the first year1 the offset may be divided equally over the first #b years in which the individual receives the annuity4 7#f7 ,exception ,notwithstanding clauses 7i7 and 7ii7 of paragraph 7#c77;,c71 if any magistrate judge of the ,tax ,court retires under circumstances making such magistrate judge of the ,tax ,court eligible to make an election under subsection 7b7 of section #hdcc of such title #e1 and the nonforfeitable account balance of such magistrate judge of the ,tax ,court is less than an amount which the ,executive ,director of the ,office of ,personnel ,management prescribes by regulation1 the ,executive ,director shall pay the nonforfeitable account balance to the participant in a single payment4 7e7 ,coordination with title #e ,a magistrate judge of the ,tax ,court who elects to receive an annuity under this section-- 7#a7 shall not be subject to deductions and contributions otherwise required by section #hccd7;a7 of title #e ,united ,states ,code1 7#b7 shall be excluded from the application of chapter #hd 7other than subchapters ,,iii and ,,vii7 of such title #e1 and 7#c7 is entitled to a lump-sum credit under section #hcdb7;a7 or #hdbd of such title #e1 as the case may be4 4 7b7 ,conforming amendments 7#a7 ,section #caba7;b77#e77;,e7 of the ,internal ,revenue ,code of #aihf is amended by inserting or magistrate judge before of the ,united ,states ,tax ,court4 7#b7 ,section #baj7;a77#e77;,e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daj7;a77#e77;,e77 is amended by inserting or a magistrate judge of the ,tax ,court who files an election under section #gddc;,b7a7 of the ,internal ,revenue ,code of #aihf after of the ,united ,states ,tax ,court4 7#c7 ,section #gddh7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,magistrate judges of the ,tax ,court ,any magistrate judge of the ,tax ,court may by written election filed with the chief judge bring himself or herself within the purview of this section4 ,such election shall be filed while such individual is a magistrate judge of the ,tax ,court4 4 7c7 ,clerical amendment ,the table of sections for part ,i of subchapter ,c of chapter #gf of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #gddc;,a the following new item3 ,sec4 #gddc;,b4 ,retirement for magistrate judges of the ,tax ,court4 4 7d7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #cjh4 ,provisions for recall 7a7 ,in general ,part ,i of subchapter ,c of chapter #gf of the ,internal ,revenue ,code of #aihf1 as amended by section #cjg1 is amended by inserting after section #gddc;,b the following new section3 #gddc;,c4 ,recall of magistrate judges of the ,tax ,court 7a7 ,recalling of retired magistrate judges of the ,tax ,court ,any individual who has retired pursuant to section #gddc;,b or the applicable provisions of title #e or #bh1 ,united ,states ,code1 upon reaching the age and service requirements established under such titles #e and #bh1 may be called upon by the chief judge to perform such judicial duties with the ,tax ,court as may be requested of such individual for a period or periods specified by the chief judge1 except that in the case of any such individual-- 7#a7 the aggregate of such periods in any #a calendar year shall not 7without the consent of such individual7 exceed #ij calendar days1 and 7#b7 such individual shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties4 ,any act1 or failure to act1 by an individual performing judicial duties pursuant to this subsection shall have the same force and effect as if it were the act 7or failure to act7 of a magistrate judge of the ,tax ,court4 7b7 ,compensation ,for the year in which a period of recall occurs1 the magistrate judge of the ,tax ,court shall receive1 in addition to the annuity provided under the provisions of section #gddc;,b1 an amount equal to the difference between that annuity and the current salary of the office to which the magistrate judge of the ,tax ,court is recalled 7and allowances for travel and other expenses of the magistrate judge of the ,tax ,court74 ,the annuity for years after the year in which a period of recall occurs of the magistrate judge of the ,tax ,court who completes such a period of service1 who is not recalled in a subsequent year1 and who retired under section #gddc;,b1 shall be equal to the salary in effect at the end of the year in which the period of recall occurred for the office from which such magistrate judge of the ,tax ,court retired4 7c7 ,rulemaking authority ,the provisions of this section shall be implemented under such rules and regulations as may be promulgated by the ,tax ,court4 4 7b7 ,clerical amendment ,the table of sections for part ,i of subchapter ,c of chapter #gf of the ,internal ,revenue ,code of #aihf1 as amended by section #cjg1 is amended by inserting after the item relating to section #gddc;,b the following new item3 ,sec4 #gddc;,c4 ,recall of magistrate judges of the ,tax ,court4 4 ,,iv ,other benefits #dja4 ,benefits provided to volunteer firefighters and emergency medical responders 7a7 ,increase in dollar limitation on qualified payments ,subparagraph 7,b7 of section #aci;,b7c77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking #cj and inserting #ej4 7b7 ,extension ,subsection 7d7 of section #aci;,b of the ,internal ,revenue ,code of #aihf is amended by striking beginning after ,december #ca1 #bjaj4 and inserting beginning-- 7#a7 after ,december #ca1 #bjaj1 and before ,january #a1 #bjai1 or 7#b7 after ,december #ca1 #bjai4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 ,v ,revenue provisions #eja4 ,modifications of required distribution rules for pension plans 7a7 ,modification of rules where employee dies before entire distribution 7#a7 ,in general ,section #dja7;a77#i7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,h7 ,special rules for certain defined contribution plans 7i7 ,in general ,in the case of distributions from a defined contribution plan1 a trust forming part of such plan shall not constitute a qualified trust under this section unless the plan provides that1 if-- 7,i7 an employee dies before the distribution of the employee's interest 7whether or not such distribution has begun in accordance with subparagraph 7,a771 and 7,,ii7 the aggregate account balances to the credit of the employee under all defined contribution plans1 determined as of the date of the employee's death1 exceeds #dej1jjj1 so much of the entire interest of the employee as exceeds the dollar amount in subclause 7,,ii7 will be distributed within #e years after the death of such employee4 7ii7 ,allocation of limitation ,if an employee has an account under more than #a defined contribution plan1 the #dej1jjj amount under clause 7i77,,ii7 shall be allocated among all such plans1 as provided in regulations prescribed by the ,secretary1 for purposes of applying clause 7i74 7iii7 ,treatment of remaining amount ,the portion of the employee's interest distributed under clause 7i7 shall not be taken into account for purposes of determining the rapidity or the method of distribution of any portion of the interest of the employee to which clause 7i7 does not apply4 7iv7 ,multiple beneficiaries ,in the case of an employee who has more than #a beneficiary1 the amount of the portion required to be distributed under clause 7i7 which shall be treated as payable to 7or for the benefit of7 such beneficiary is the amount which bears the same ratio to the total amount of such portion as-- 7,i7 the portion of the employee's entire interest 7determined as of the date of the employee's death7 which is payable to 7or for the benefit of7 such beneficiary1 bears to 7,,ii7 the amount of the employee's entire interest 7so determined74 7v7 ,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 for purposes of clause 7i71 the portion referred to in subclause 7,i7 shall be treated as distributed on the date on which such distributions begin4 7vi7 ,special rule for surviving spouse of employee ,if the eligible designated beneficiary is the surviving spouse of the employee-- 7,i7 the date on which the distributions are required to begin under clause 7v77,,iii7 shall not be earlier than the date on which the employee would have attained age #gja_/b1 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 7vii7 ,rules upon death of eligible designated beneficiary ,if an eligible designated beneficiary dies before the portion of the employee's interest to which clause 7i7 applies which is payable to 7or for the benefit of7 such eligible designated beneficiary is entirely distributed1 the exception under clause 7v7 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 7viii7 ,coordination with individual retirement plans ,for purposes of applying the provisions of this subparagraph and subsections 7a77#f7 and 7b77#c7 of section #djh1 individual retirement plans shall be treated as defined contribution plans in determining the aggregate account balances to the credit of the employee under all defined contribution plans and the amount required to be distributed to each beneficiary under such provisions4 4 7#b7 ,definition of eligible designated beneficiary ,section #dja7;a77#i77;,e7 of such ,code 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 who 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 which is reasonably expected to be lengthy in nature71 or 7,v7 an individual not described in any of the preceding subclauses 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 any remainder of the portion of the interest described in subparagraph 7,h77v7 shall be distributed within #e years after such date4 7iv7 ,time for determination of eligible designated beneficiary ,the determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of death of the employee4 4 7#c7 ,conforming amendments 7,a7 ,clause 7ii7 of section #dja7;a77#i77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking ,a trust and inserting ,except as provided in subparagraph 7,h71 a trust4 7,b7 ,section #djb7;c77#aa77;,a77iii7 of such ,code is amended by striking section #dja7;a77#i77;,b7 7other than clause 7iv7 thereof7 and inserting subparagraphs 7,b7 7other than clause 7iv7 thereof7 and 7,h7 7other than clause 7vi7 thereof7 of section #dja7;a77#i74 7#d7 ,effective dates 7,a7 ,in general ,except as provided in this paragraph and paragraphs 7#e7 and 7#f71 the amendments made by this subsection shall apply to distributions with respect to employees who die after ,december #ca1 #bjah4 7,b7 ,collective bargaining exception ,in the case of a plan maintained pursuant to #a or more collective bargaining agreements between employee representatives and #a or more employers ratified before the date of enactment of this ,act1 the amendments made by this subsection shall apply to distributions with respect to employees who die in calendar years beginning after the earlier of-- 7i7 the later of-- 7,i7 the date on which the last of such collective bargaining agreements terminates 7determined without regard to any extension thereof agreed to on or after the date of the enactment of this ,act72 or 7,,ii7 ,december #ca1 #bjah2 or 7ii7 ,december #ca1 #bjbj4 ,for purposes of clause 7i77,i71 any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement4 7,c7 ,governmental plans ,in the case of a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf71 subparagraph 7,a7 shall be applied by substituting ,december #ca1 #bjbj for ,december #ca1 #bjah4 7#e7 ,exception for certain existing annuity contracts 7,a7 ,in general ,the amendments made by this subsection shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of enactment of this ,act and at all times thereafter4 7,b7 ,qualified annuity ,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 the ,internal ,revenue ,code of #aihf72 7ii7 under which the annuity payments are made over the life of the employee or over the joint lives of such employee and a designated beneficiary 7or over a period not extending beyond the life expectancy of such employee or the joint 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 section #dja7;a77#i7 of such ,code 7as so in effect7 with respect to such payments2 and 7iii7 with respect to which-- 7,i7 annuity payments to the employee have begun before the date of enactment of this ,act1 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 beneficiaries2 or 7,,ii7 if subclause 7,i7 does not apply1 the employee has made an irrevocable election before the date of enactment of this ,act as to the method and amount of the annuity payments to the employee or any designated beneficiaries4 7#f7 ,exception for certain beneficiaries 7,a7 ,in general ,if an employee dies before the effective date1 then1 in applying the amendments made by this subsection to such employee's designated beneficiary who dies after such date-- 7i7 such amendments shall apply to any beneficiary of such designated beneficiary2 and 7ii7 the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section #dja7;a77#i77;,h77iv7 of the ,internal ,revenue ,code of #aihf 7as in effect after such amendments74 7,b7 ,effective date ,for purposes of this paragraph1 the term effective date means the first day of the first calendar year to which the amendments made by this subsection apply to a plan with respect to employees dying on or after such date4 7b7 ,provisions relating to plan amendments 7#a7 ,in general ,if this subsection applies to any plan amendment-- 7,a7 such plan shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,b77i72 and 7,b7 except as provided by the ,secretary of the ,treasury1 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 ,amendments to which subsection applies 7,a7 ,in general ,this subsection shall apply to any amendment to any plan or which is made-- 7i7 pursuant to any amendment made by this section or pursuant to any regulation issued by the ,secretary of the ,treasury under this section or such amendments2 and 7ii7 on or before the last day of the first plan year beginning after ,december #ca1 #bjbj1 or such later date as the ,secretary of the ,treasury may prescribe4 ,in the case of a governmental or collectively bargained plan to which subparagraph 7,b7 or 7,c7 of subsection 7a77#d7 applies1 clause 7ii7 shall be applied by substituting the date which is #b years after the date otherwise applied under such clause4 7,b7 ,conditions ,this subsection shall not apply to any amendment unless-- 7i7 during the period-- 7,i7 beginning on the date the legislative or regulatory amendment described in paragraph 7#a77;,a7 takes effect 7or in the case of a plan amendment not required by such legislative or regulatory amendment1 the effective date specified by the plan72 and 7,,ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan amendment is adopted71 the plan is operated as if such plan amendment were in effect2 and 7ii7 such plan amendment applies retroactively for such period4 #ejb4 ,increase in penalty for failure to file 7a7 ,in general ,the second sentence of subsection 7a7 of section #ffea of the ,internal ,revenue ,code of #aihf is amended by striking #bje and inserting #djj4 7b7 ,effective date ,the amendment made by this section shall apply to returns the due date for which 7including extensions7 is after ,december #ca1 #bjah4 #ejc4 ,increased penalties for failure to file retirement plan returns 7a7 ,in general ,subsection 7e7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #be and inserting #ajj2 and 7#b7 by striking #ae1jjj and inserting #ej1jjj4 7b7 ,annual registration statement and notification of changes ,subsection 7d7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #a both places it appears in paragraphs 7#a7 and 7#b7 and inserting #b2 7#b7 by striking #e1jjj in paragraph 7#a7 and inserting #aj1jjj2 and 7#c7 by striking #a1jjj in paragraph 7#b7 and inserting #e1jjj4 7c7 ,failure ,to provide notice ,subsection 7h7 of section #ffeb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #aj and inserting #ajj2 and 7#b7 by striking #e1jjj and inserting #ej1jjj4 7d7 ,effective date ,the amendments made by this section shall apply to returns1 statements1 and notifications required to be filed1 and notices required to be provided1 after ,december #ca1 #bjah4 #ejd4 ,increase information sharing to administer excise taxes 7a7 ,in general ,section #fajc7o7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#c7 ,taxes imposed by section #ddha ,returns and return information with respect to taxes imposed by section #ddha shall be open to inspection by or disclosure to officers and employees of ,united ,states ,customs and ,border ,protection of the ,department of ,homeland ,security whose official duties require such inspection or disclosure for purposes of administering such section4 4 7b7 ,conforming amendments ,paragraph 7#d7 of section #fajc7p7 of the ,internal ,revenue ,code of #aihf is amended by striking or 7o77#a77;,a7 each place it appears and inserting 1 7o77#a77;,a71 or 7o77#c74 #eje4 ,pension variable rate premium payment acceleration ,notwithstanding section #djjg7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acjg7;a77 and section #djjg4aa of title #bi1 ,code of ,federal ,regulations1 any additional premium determined under subparagraph 7,e7 of section #djjf7;a77#c7 of such ,act 7#bi ,u4,s4,c4 #acjf7;a77#c77 the due date for which is 7but for this section7 after ,september #cj1 #bjbg1 and before ,june #a1 #bjbh1 shall be due not later than ,september #cj1 #bjbg4