,,ib ,union ,cal5d> ,no4 #ahj #aag?     
,,congress  #b;d ,session  ,h4 ,r4 #ehia
 ,report ,no4 #aag-bej1 ,"p ,i ,,9 ,,!  
,,h\se ,,( ,,repres5tatives  ,novemb]   
#e1 #bjba,mr4 ,scott ( ,virg9ia 7=      
himself1 ,ms4 ,foxx1 ,mr4 ,de,saulnier1 
& ,mr4 ,all57 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on         
,education & ,labor1 & 9 addition to !  
,committee on ,ways & ,means1 = a p]iod 
to be subsequ5tly det]m9$ by ! ,speak]1 
9 ea* case = consid]ation ( su*         
provisions z fall )9 ! jurisdiction ( ! 
committee conc]n$  ,febru>y #be1        
#bjbb,report$ f ! ,committee on         
,education & ,labor ) an                
amendment,strike out all aft] ! enact+  
clause & ins]t ! "p pr9t$ 9 italic      
,febru>y #be1 #bjbb;,committee on ,ways 
& ,means dis*>g$2 committ$ to !         
,committee ( ! ,:ole ,h\se on ! ,/ate ( 
! ,union & ord]$ to be printed,for text 
( introduc$ bill1 see copy ( bill z     
introduc$ on ,novemb] #e1 #bjba  ,a     
,,bill  ,to improve & enhance retirem5t 

sav+s1 & = o!r purposes4  #a4 ,%ort     
title2 table ( cont5ts  7a7 ,%ort title 
,?is ,act may be cit$ z ! ,retirem5t    
,improvem5t & ,sav+s ,enhancem5t ,act ( 
#bjba or ! ,,rise ,act4  7b7 ,table (   
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3 ,sec4 #a4 ,%ort title2 table 
( cont5ts4,sec4 #b4 ,retirem5t sav+s lo/
 & f\nd4,sec4 #c4 ,retirem5t plan       
mod]nization act4,sec4 #d4 ,multiple    
employ] #djc7;b7 plans4,sec4 #e4 ,small 
imm$iate f9ancial inc5tives = contribut+
 to a plan4,sec4 #f4 ,p]=mance b5*m>ks =
 asset allocation funds4,sec4 #g4 ,pool$
 employ] plans modification4,sec4 #h4   
,review ( p5sion risk transf]           
int]pretive bullet94,sec4 #i4 ,review & 
report to congress relat+ to report+ &  
disclosure requirem5ts4,sec4 #aj4       
,elim9at+ unnecess>y plan requirem5ts   
relat$ to un5roll$ p>ticipants4,sec4    
#aa4 ,recov]y ( retirem5t plan          
ov]paym5ts4,sec4 #ab4 ,improv+ cov]age =
 "p-"t work]s4  #b4 ,retirem5t sav+s lo/
 & f\nd  7a7 ,e/abli%m5t ( retirem5t    

sav+s lo/ & f\nd ,"p #e ( title ,i ( !  
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #acda et    
seq47 is am5d$ by add+ at ! end !       
foll[+3  #ebc4 ,retirem5t ,sav+s ,lo/ & 
,f\nd  7a7 ,e/abli%m5t  7#a7 ,9 g5]al ,n
 lat] ?an #b ye>s aft] ! date ( !       
enactm5t ( ?is section1 ! ,secret>y (   
,labor1 9 consultation ) ! ,secret>y ( !
 ,treasury1 %all e/abli% an onl9e       
se>*able database 7to be manag$ by !    
,dep>tm5t ( ,labor 9 accordance ) ?is   
section7 to be kn[n z ! ,retirem5t      
,sav+s ,lo/ & ,f\nd4 ,! ,retirem5t      
,sav+s ,lo/ & ,f\nd %all-- 7,a7 all[ an 
individual to se>* = in=mation t enables
 ! individual to locate ! adm9i/rator ( 
any plan describ$ 9 p>agraph 7#b7 )     
respect to :i* ! individual is or 0 a   
p>ticipant or b5efici>y1 & provide      
contact in=mation = ! adm9i/rator ( any 
su* plan2  7,b7 all[ ! ,dep>tm5t (      
,labor to assi/ su* an individual 9     
locat+ any su* plan ( ! individual2 &   
7,c7 all[ ! ,dep>tm5t ( ,labor to make  

any necess>y *anges to contact in=mation
 on record = ! adm9i/rator bas$ on any  
*anges to ! plan due to m]g] or         
consolidation ( ! plan ) any o!r plan1  
division ( ! plan into two or m plans1  
bankruptcy1 t]m9ation1 *ange 9 "n ( !   
plan1 *ange 9 "n or address ( !         
adm9i/rator1 or o!r causes4  ,!         
,retirem5t ,sav+s ,lo/ & ,f\nd e/abli%$ 
"u ?is p>agraph %all include in=mation  
report$ "u ?is section & o!r relevant   
in=mation obta9$ by ! ,dep>tm5t (       
,labor4  7#b7 ,plans describ$ ,a plan   
describ$ 9 ?is p>agraph is a plan to :i*
 ! ve/+ /&>ds ( section #bjc apply4  7b7
 ,adm9i/ration ,! ,retirem5t ,sav+s ,lo/
 & ,f\nd e/abli%$ "u subsection 7a7 %all
 provide individuals describ$ 9         
subsection 7a77#a7 only ) ! ability to  
se>* = in=mation t enables ! individual 
to locate ! adm9i/rator & contact       
in=mation = ! adm9i/rator ( any plan )  
respect to :i* ! individual is or 0 a   
p>ticipant or b5efici>y1 suffici5t to   
all[ ! individual to locate !           

individual's plan 9 ord] to recov] any  
b5efit ow+ to ! individual "u ! plan4   
7c7 ,safegu>d+ p>ticipant privacy &     
security ,9 e/abli%+ ! ,retirem5t ,sav+s
 ,lo/ & ,f\nd "u subsection 7a71 !      
,dep>tm5t ( ,labor %all take all        
necess>y & prop] precautions to ensure t
 individuals' plan in=mation ma9ta9$ by 
! ,retirem5t ,sav+s ,lo/ & ,f\nd is     
protect$4  7d7 ,def9ition ( adm9i/rator 
,= purposes ( ?is section & section     
#ebc1 ! t]m adm9i/rator has ! mean+ giv5
 su* t]m 9 section #c7af77;,a74  7e7    
,in=mation collection f plans ,effective
 ) respect to plan ye>s beg9n+ aft] !   
second ,decemb] #ca occurr+ aft] ! date 
( ! enactm5t ( ?is subsection1 !        
adm9i/rator ( a plan to :i* ! ve/+ /&>ds
 ( section #bjc apply %all submit to !  
,dep>tm5t ( ,labor1 at su* "t & 9 su* =m
 & mann] z is prescrib$ 9 regulations-- 
7#a7 ! in=mation describ$ 9 p>agraphs   
7#a7 ?r\gh 7#d7 ( section #fjeg7;b7 ( ! 
,int]nal ,rev5ue ,code ( #aihf2  7#b7 ! 
in=mation describ$ 9 subp>agraphs 7,a71 

7,b71 7,e71 & 7,f7 ( section            
#fjeg7;a77#b7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf2 &  7#c7 su* o!r in=mation z ! 
,secret>y ( ,labor may require4  7f7    
,in=mation collection f f$]al ag5cies ,!
 ,secret>y ( ,labor is au?oriz$ to      
access & receive in=mation collect$ by  
o!r ,f$]al ag5cies t may be necess>y to 
p]=m "w relat$ to ! ,retirem5t ,sav+s   
,lo/ & ,f\nd4 ,su* necess>y &           
appropriate in=mation1 :i* %all be      
furni%$ to ! ,secret>y ( ,labor on      
reque/1 includes in=mation cov]$ by     
section #fajc ( ! ,int]nal ,rev5ue ,code
 ( #aihf & section #bje7r7 ( ! ,social  
,security ,act4  7g7 ,program integrity 
audit ,on an annual basis = ea* ( ! fir/
 #e ye>s beg9n+ "o ye> aft] ! e/abli%m5t
 ( ! database 9 subsection 7a77#a7 & e  
#e ye>s !reaft]1 ! ,inspector ,g5]al ( !
 ,dep>tm5t ( ,labor %all conduct an     
audit ( ! adm9i/ration ( ! ,retirem5t   
,sav+s ,lo/ & ,f\nd4  4  7b7 ,con=m+    
am5dm5t ,! table ( cont5ts = ! ,employee
 ,retirem5t ,income ,security ,act (    

#aigd 7#bi ,u4,s4,c4 #ajja et seq47 is  
am5d$ by ins]t+ aft] ! matt] relat+ to  
section #eba ! foll[+3  ,sec4           
#ebc4,retirem5t ,sav+s ,lo/ & ,f\nd4  4 
#c4 ,retirem5t plan mod]nization act    
,section #bjc7;e77#a7 ( ! ,employee     
,retirem5t ,income ,security ,act (     
#aigd & sections #dja7;a77#ca77;,b77ii7 
& #daa7;a77#aa77;,a7 ( ! ,int]nal       
,rev5ue ,code ( #aihf & are ea* am5d$ by
 /rik+ #e1jjj & ins]t+ #g1jjj4  #d4     
,multiple employ] #djc7;b7 plans  7a7 ,9
 g5]al ,section #djc7;b7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#ae7  
,multiple employ] plans  7,a7 ,9 g5]al  
,except 9 ! case ( a *ur* plan1 ?is     
subsection %all n be treat$ z fail+ to  
apply to an annuity contract solely by  
reason ( su* contract be+ pur*as$ "u a  
plan ma9ta9$ by m ?an #a employ]4  7,b7 
,treatm5t ( employ]s fail+ to meet      
requirem5ts ( plan  7i7 ,9 g5]al ,9 !   
case ( a plan ma9ta9$ by m ?an #a       
employ]1 ?is subsection %all n be treat$

 z fail+ to apply to an annuity contract
 held "u su* plan m]ely because ( "o or 
m employ]s fail+ to meet ! requirem5ts (
 ?is subsection if su* plan satisfies   
rules simil> to ! rules ( section       
#dac7;e77#b7 ) respect to any su*       
employ] failure4  7ii7 ,additional      
requirem5ts 9 case ( non-gov]nm5tal     
plans ,a plan %all n be treat$ z meet+ !
 requirem5ts ( ?is subp>agraph unless ! 
plan meets ! requirem5ts ( subp>agraph  
7,a7 or 7,b7 ( section #dac7;e77#a71    
except 9 ! case ( a multiple employ]    
plan ma9ta9$ solely by any ( ! foll[+3  
,a ,/ate1 a political subdivision ( a   
,/ate1 or an ag5cy or in/rum5tality (   
any "o or m ( ! =ego+4  4  7b7 ,annual  
regi/ration = #djc7;b7 multiple employ] 
plan ,section #fjeg ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by r$esignat+   
subsection 7g7 z subsection 7h7 & by    
ins]t+ aft] subsection 7f7 ! foll[+ new 
subsection3  7g7 #djc7;b7 multiple      
employ] plans treat$ z "o plan ,9 ! case
 ( annuity contracts to :i* ?is section 

applies & to :i* section #djc7;b7       
applies by reason ( ! plan "u :i* su*   
contracts are pur*as$ meet+ !           
requirem5ts ( p>agraph 7#ae7 !re(1 su*  
plan %all be treat$ z a s+le plan =     
purposes ( ?is section4  4  7c7 ,annual 
in=mation returns = #djc7;b7 multiple   
employ] plan ,section #fjeh ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by      
r$esignat+ subsection 7f7 z subsection  
7g7 & by ins]t+ aft] subsection 7e7 !   
foll[+ new subsection3  7f7 #djc7;b7    
multiple employ] plans treat$ z "o plan 
,9 ! case ( annuity contracts to :i* ?is
 section applies & to :i* section       
#djc7;b7 applies by reason ( ! plan "u  
:i* su* contracts are pur*as$ meet+ !   
requirem5ts ( p>agraph 7#ae7 !re(1 su*  
plan %all be treat$ z a s+le plan =     
purposes ( ?is section4  4  7d7         
,am5dm5ts to ,employee ,retirem5t       
,income ,security ,act ( #aigd  7#a7 ,9 
g5]al ,section #c7dc77;,a7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd is am5d$-- 7,a7 9 clause 7ii71 by 

/rik+ section #eja7;a7 ( su* ,code or & 
ins]t+ section #eja7;a7 ( su* ,code1 a  
plan t consi/s ( contracts describ$ 9   
section #djc7;b7 ( su* ,code1 or2 &     
7,b7 9 ! flu% text at ! end1 by /rik+ ! 
plan4 & ins]t+ ! plan1 b su* t]m %all   
include any program 7o!r ?an a          
gov]nm5tal plan7 ma9ta9$ = ! b5efit ( ! 
employees ( m ?an #a employ] t consi/s (
 contracts describ$ 9 section #djc7;b7 (
 su* ,code & t meets ! requirem5ts (    
subp>agraph 7,a7 or 7,b7 ( section      
#dac7;e77#a7 ( su* ,code44  7#b7 ,con=m+
 am5dm5ts ,sections #c7dc77;,b77v77,,ii7
 & #c7dd77;,a77i77,i7 ( ! ,employee     
,retirem5t ,income ,security ,act (     
#aigd are ea* am5d$ by /rik+ section    
#dja7;a7 ( su* ,code or & ins]t+ section
 #dja7;a7 ( su* ,code1 a plan t consi/s 
( contracts describ$ 9 section #djc7;b7 
( su* ,code1 or4  7e7 ,regulations      
relat+ to plan t]m9ation ,! ,secret>y ( 
! ,treasury 7or ! ,secret>y's designee7 
%all prescribe su* regulations z may be 
necess>y to cl>ify ! treatm5t ( a plan  

t]m9ation by an employ] 9 ! case ( plans
 to :i* section #djc7;b77#ae7 ( !       
,int]nal ,rev5ue ,code ( #aihf applies4 
7f7 ,modification ( model plan language1
 etc  7#a7 ,plan notifications ,!       
,secret>y ( ! ,treasury 7or !           
,secret>y's designee7 %all modify !     
model plan language publi%$ "u section  
#dac7;e77#e7 ( ! ,int]nal ,rev5ue ,code 
( #aihf to include language t notifies  
p>ticipat+ employ]s describ$ 9 section  
#eja7;c77#c71 & :i* are exempt f tax "u 
section #eja7;a71 t ! plan is subject to
 ! ,employee ,retirem5t ,income         
,security ,act ( #aigd & t su* employ]  
is a plan sponsor ) respect to its      
employees p>ticipat+ 9 ! multiple       
employ] plan &1 z su*1 has c]ta9        
fiduci>y duties ) respect to ! plan & to
 its employees4  7#b7 ,model plans =    
multiple employ] #djc7;b7 non-gov]nm5tal
 plans ,= plans to :i* section          
#djc7;b77#ae77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf applies 7o!r ?an a plan   
ma9ta9$ = its employees by a ,/ate1 a   

political subdivision ( a ,/ate1 or an  
ag5cy or in/rum5tality ( any "o or m ( !
 =ego+71 ! ,secret>y ( ! ,treasury %all 
publi% model plan language simil> to    
model plan language publi%$ "u section  
#dac7;e77#e7 ( su* ,code4  7#c7         
,educational outrea* to employ]s exempt 
f tax ,! ,secret>y ( ! ,treasury %all   
provide education & outrea* to increase 
aw>5ess to employ]s describ$ 9 section  
#eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf1 & :i* are exempt f tax "u      
section #eja7;a7 ( su* ,code1 t multiple
 employ] plans are subject to !         
,employee ,retirem5t ,income ,security  
,act ( #aigd & t su* employ] is a plan  
sponsor ) respect to its employees      
p>ticipat+ 9 ! multiple employ] plan &1 
z su*1 has c]ta9 fiduci>y duties )      
respect to ! plan & to its employees4   
7g7 ,no inf]5ce ) respect to *ur* plans 
,reg>d+ any application ( section       
#djc7;b7 ( ! ,int]nal ,rev5ue ,code (   
#aihf to an annuity contract pur*as$ "u 
a *ur* plan 7z def9$ 9 section #dad7;e7 

( su* ,code7 ma9ta9$ by m ?an #a        
employ]1 or to any application ( rules  
simil> to section #dac7;e7 ( su* ,code  
to su* a plan1 no inf]5ce %all be made f
 section #djc7;b77#ae77;,a7 ( su* ,code 
7z add$ by ?is ,act7 n apply+ to su*    
plans4  7h7 ,effective date  7#a7 ,9    
g5]al ,! am5dm5ts made by ?is section   
%all apply to plan ye>s beg9n+ aft]     
,decemb] #ca1 #bjba4  7#b7 ,rule (      
con/ruction ,no?+ 9 ! am5dm5ts made by  
subsection 7a7 %all be con/ru$ z limit+ 
! au?ority ( ! ,secret>y ( ! ,treasury  
or ! ,secret>y's delegate 7det]m9$ )\t  
reg>d to su* am5dm5t7 to provide = !    
prop] treatm5t ( a failure to meet any  
requirem5t applicable "u ! ,int]nal     
,rev5ue ,code ( #aihf ) respect to "o   
employ] 7& its employees7 9 ! case ( a  
plan to :i* section #djc7;b77#ae7 ( !   
,int]nal ,rev5ue ,code ( #aihf applies4 
#e4 ,small imm$iate f9ancial inc5tives =
 contribut+ to a plan  7a7 ,9 g5]al     
,subp>agraph 7,a7 ( section #dja7k77#d7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   

am5d$ by ins]t+ 7o!r ?an a de m9imis    
f9ancial inc5tive7 aft] any o!r b5efit4 
7b7 ,section #djc7;b7 plans ,subp>agraph
 7,a7 ( section #djc7;b77#ab7 ( !       
,int]nal ,rev5ue ,code ( #aihf1 is fur!r
 am5d$ by add+ at ! end ! foll[+3 ,a    
plan %all n fail to satisfy clause 7ii7 
solely by reason ( (f]+ a de m9imis     
f9ancial inc5tive to employees to elect 
to h ! employ] make contributions       
pursuant to a sal>y r$uction agreem5t44 
7c7 ,exemption f prohibit$ transaction  
rules ,subsection 7d7 ( section #dige ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by /rik+ or at ! end ( p>agraph   
7#bb71 by /rik+ ! p]iod at ! end (      
p>agraph 7#bc7 & ins]t+ 1 or1 & by add+ 
at ! end ! foll[+ new p>agraph3  7#bd7 !
 provision ( a de m9imis f9ancial       
inc5tive describ$ 9 section             
#dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 
4  7d7 ,am5dm5t ( ,employee ,retirem5t  
,income ,security ,act ( #aigd          
,subsection 7b7 ( section #djh ( !      
,employee ,retirem5t ,income ,security  

,act ( #aigd 7#bi ,u4,s4,c4 #aajh7;b77  
is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#ba7 ,! provision ( a de    
m9imis f9ancial inc5tive describ$ 9     
section #dja7k77#d77;,a7 or section     
#djc7;b77#ab77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf4  4  7e7 ,effective date  
,! am5dm5ts made by ?is section %all    
apply ) respect to plan ye>s beg9n+ aft]
 ! date ( enactm5t ( ?is ,act4  #f4     
,p]=mance b5*m>ks = asset allocation    
funds  7a7 ,9 g5]al ,n lat] ?an #a ye>  
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y ( ,labor %all provide t1 9 !  
case ( a designat$ inve/m5t alt]native t
 conta9s a mix ( asset classes1 !       
adm9i/rator ( a plan may1 b is n requir$
 to1 use a b5*m>k t is a bl5d ( diff]5t 
broad-bas$ securities m>ket indices if--
 7#a7 ! bl5d is reasonably repres5tative
 ( ! asset class hold+s ( ! designat$   
inve/m5t alt]native2  7#b7 = purposes ( 
det]m9+ ! bl5d's returns = #a-1 #e-1 &  
#aj-;cal5d>-ye> p]iods 7or = ! life ( ! 
alt]native1 if %ort]71 ! bl5d is modifi$

 at lea/ once p] ye> to reflect *anges 9
 ! asset class hold+s ( ! designat$     
inve/m5t alt]native2  7#c7 ! bl5d is    
furni%$ to p>ticipants & b5efici>ies 9 a
 mann] t is reasonably design$ to be    
und]/&able2 &  7#d7 ea* securities m>ket
 index t is us$ = an associat$ asset    
class w\ld sep>ately satisfy !          
requirem5ts ( su* regulation = su* asset
 class4  7b7 ,/udy ,n lat] ?an #c ye>s  
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y ( ,labor %all deliv] a report 
to ! ,committees on ,f9ance & ,heal?1   
,education1 ,labor1 & ,p5sions ( !      
,s5ate & ! ,committees on ,ways & ,means
 & ,education & ,labor ( ! ,h\se (      
,repres5tatives reg>d+ ! utilization1   
effectiv5ess1 & p>ticipants' und]/&+ ( !
 b5*m>k+ requirem5ts "u ?is section4    
#g4 ,pool$ employ] plans modification   
,section #c7dc77;,b77ii7 ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajjb7dc77;,b77ii77
 is am5d$ to read z foll[s3  7ii7       
designate a nam$ fiduci>y 7o!r ?an an   

employ] 9 ! plan7 to be responsible =   
collect+ contributions to ! plan &      
require su* fiduci>y to implem5t writt5 
contribution collection proc$ures t are 
reasonable1 dilig5t1 & sy/ematic2  4    
#h4 ,review ( p5sion risk transf]       
int]pretive bullet9 ,n lat] ?an #a ye>  
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y ( ,labor %all-- 7#a7 review   
section #beji4ie-a ( title #bi1 ,code ( 
,f$]al ,regulations 7relat+ to !        
fiduci>y /&>ds "u ! ,employee ,retirem5t
 ,income ,security ,act ( #aigd :5      
select+ an annuity provid] = a def9$    
b5efit p5sion plan7 to det]m9e :e!r     
am5dm5ts to su* section are w>rant$2 &  
7#b7 report to ,congress on ! f9d+s (   
su* review1 includ+ an assessm5t ( any  
risk to p>ticipants4  #i4 ,review &     
report to congress relat+ to report+ &  
disclosure requirem5ts  7a7 ,/udy ,z    
soon z practicable aft] ! date (        
enactm5t ( ?is ,act1 ! ,secret>y (      
,labor1 ! ,secret>y ( ! ,treasury1 & !  
,director ( ! ,p5sion ,b5efit ,gu>anty  

,corporation %all review ! report+ &    
disclosure requirem5ts z applicable to  
ea* su* ag5cy head1 (-- 7#a7 ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd applicable to p5sion plans 7z     
def9$ 9 section #c7b7 ( su* ,act 7#bi   
,u4,s4,c4 #ajjb7b772 &  7#b7 ! ,int]nal 
,rev5ue ,code ( #aihf applicable to     
qualifi$ retirem5t plans 7z def9$ 9     
section #digd7;c7 ( su* ,code1 )\t reg>d
 to p>agraphs 7#d7 & 7#e7 ( su*         
section74  7b7 ,report  7#a7 ,9 g5]al ,n
 lat] ?an #b ye>s aft] ! date ( enactm5t
 ( ?is ,act1 ! ,secret>y ( ,labor1 !    
,secret>y ( ! ,treasury1 & ! ,director (
 ! ,p5sion ,b5efit ,gu>anty             
,corporation1 jo9tly1 & aft]            
consultation ) a balanc$ gr\p (         
p>ticipant & employ] repres5tatives1    
%all ) respect to plans ref]5c$ 9       
subsection 7a7 report on ! effectiv5ess 
( ! applicable report+ & disclosure     
requirem5ts & make su* recomm5dations z 
may be appropriate to ! ,committee on   
,education & ,labor & ! ,committee on   

,ways & ,means ( ! ,h\se (              
,repres5tatives & ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions &
 ! ,committee on ,f9ance ( ! ,s5ate to  
consolidate1 simplify1 /&>dize1 &       
improve su* requirem5ts s z to simplify 
report+ = su* plans & ensure t plans c  
furni% & p>ticipants & b5efici>ies      
timely receive & bett] und]/& !         
in=mation !y ne$ to monitor _! plans1   
plan = retirem5t1 & obta9 ! b5efits !y h
 e>n$4  7#b7 ,analysis ( effectiv5ess   
,to assess ! effectiv5ess ( ! applicable
 report+ & disclosure requirem5ts1 !    
report %all include an analysis1 bas$ on
 plan data1 ( h[ p>ticipants &          
b5efici>ies are provid+ pref]r$ contact 
in=mation1 ! me?ods by :i* plan sponsors
 & plans are furni%+ disclosures1 & !   
rate at :i* p>ticipants & b5efici>ies   
7gr\p$ by key demographics7 are receiv+1
 access+1 und]/&+1 & reta9+ disclosures4
  7#c7 ,collection ( in=mation ,!       
ag5cies %all conduct appropriate surveys
 & data collection to obta9 any ne$$    

in=mation4  #aj4 ,elim9at+ unnecess>y   
plan requirem5ts relat$ to un5roll$     
p>ticipants  7a7 ,am5dm5t ( ,employee   
,retirem5t ,income ,security ,act (     
#aigd  7#a7 ,9 g5]al ,"p #a ( subtitle  
,b ( sub*apt] ,i ( ! ,employee          
,retirem5t ,income ,security ,act (     
#aigd is am5d$ by r$esignat+ section    
#aaa z section #aab & by ins]t+ aft]    
section #aaj ! foll[+ new section3      
#aaa4 ,elim9at+ unnecess>y plan         
requirem5ts relat$ to un5roll$          
p>ticipants  7a7 ,9 g5]al ,not)/&+ any  
o!r provision ( ?is title1 ) respect to 
any individual acc\nt plan1 no          
disclosure1 notice1 or o!r plan docum5t 
7o!r ?an ! notices & docum5ts describ$ 9
 p>agraphs 7#a7 & 7#b77 %all be requir$ 
to be furni%$ "u ?is title to any       
un5roll$ p>ticipant if ! un5roll$       
p>ticipant receives-- 7#a7 an annual    
rem9d] notice ( su* p>ticipant's        
eligibility to p>ticipate 9 su* plan &  
any applicable election deadl9es "u !   
plan2 &  7#b7 any docum5t reque/$ by su*

 p>ticipant t ! p>ticipant w\ld be      
entitl$ to receive not)/&+ ?is section4 
7b7 ,un5roll$ p>ticipant ,= purposes (  
?is section1 ! t]m un5roll$ p>ticipant  
means an employee :o-- 7#a7 is eligible 
to p>ticipate 9 an individual acc\nt    
plan2  7#b7 has receiv$ ! summ>y plan   
description pursuant to section #ajd7;b7
 & any o!r eligibility notices requir$  
to be furni%$ "u ?is title 9 connection 
) su* p>ticipant's initial eligibility  
to p>ticipate 9 su* plan2  7#c7 is n    
p>ticipat+ 9 su* plan2  7#d7 does n h a 
balance 9 ! plan2 &  7#e7 satisfies su* 
o!r crit]ia z ! ,secret>y ( ,labor may  
det]m9e appropriate1 z prescrib$ 9      
guidance issu$ 9 consultation ) !       
,secret>y ( ,treasury4  ,= purposes (   
?is section1 any eligibility to         
p>ticipate 9 ! plan foll[+ any p]iod =  
:i* su* employee 0 n eligible to        
p>ticipate %all be treat$ z initial     
eligibility4  7c7 ,annual rem9d] notice 
,= purposes ( ?is section1 ! t]m annual 
rem9d] notice means a notice provid$ 9  

accordance ) section #bebj4ajd;b-#a (   
title #bi1 ,code ( ,f$]al ,regulations  
7or any successor regulation71 :i*--    
7#a7 is furni%$ 9 connection ) ! annual 
op5 season election p]iod ) respect to !
 plan or1 if !re is no su* p]iod1 is    
furni%$ )9 a reasonable p]iod prior to !
 beg9n+ ( ea* plan ye>2  7#b7 notifies !
 un5roll$ p>ticipant (-- 7,a7 ! un5roll$
 p>ticipant's eligibility to p>ticipate 
9 ! plan2 &  7,b7 ! key b5efits & rights
 "u ! plan1 ) a focus on employ]        
contributions & ve/+ provisions2 &  7#c7
 provides su* in=mation 9 a prom95t     
mann] calculat$ to be und]/ood by !     
av]age p>ticipant4  4  7#b7 ,cl]ical    
am5dm5t ,! table ( cont5ts 9 section #a 
( ! ,employee ,retirem5t ,income        
,security ,act ( #aigd is am5d$ by /rik+
 ! item relat+ to section #aaa & by     
ins]t+ aft] ! item relat+ to section    
#aaj ! foll[+ new items3  ,sec4 #aaa4   
,elim9at+ unnecess>y plan requirem5ts   
relat$ to un5roll$ p>ticipants4 ,sec4   
#aab4 ,repeal & effective date4  4  7b7 

,am5dm5t ( ,int]nal ,rev5ue ,code (     
#aihf ,section #dad ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new subsection3  7aa7         
,elim9at+ unnecess>y plan requirem5ts   
relat$ to un5roll$ p>ticipants  7#a7 ,9 
g5]al ,not)/&+ any o!r provision ( ?is  
title1 ) respect to any def9$           
contribution plan1 no disclosure1       
notice1 or o!r plan docum5t 7o!r ?an !  
notices & docum5ts describ$ 9           
subp>agraphs 7,a7 & 7,b77 %all be       
requir$ to be furni%$ "u ?is title to   
any un5roll$ p>ticipant if ! un5roll$   
p>ticipant receives-- 7,a7 an annual    
rem9d] notice ( su* p>ticipant's        
eligibility to p>ticipate 9 su* plan &  
any applicable election deadl9es "u !   
plan1 &  7,b7 any docum5t reque/$ by su*
 p>ticipant t ! p>ticipant w\ld be      
entitl$ to receive not)/&+ ?is          
subsection4  7#b7 ,un5roll$ p>ticipant  
,= purposes ( ?is subsection1 ! t]m     
un5roll$ p>ticipant means an employee   
:o-- 7,a7 is eligible to p>ticipate 9 a 

def9$ contribution plan1  7,b7 has      
receiv$ ! summ>y plan description       
pursuant to section #ajd7;b7 ( !        
,employee ,retirem5t ,income ,security  
,act ( #aigd & any o!r eligibility      
notices 9 connection ) su* p>ticipant's 
initial eligibility to p>ticipate 9 su* 
plan1  7,c7 is n p>ticipat+ 9 su* plan1 
7,d7 does n h a balance 9 ! plan1 &     
7,e7 satisfies su* o!r crit]ia z !      
,secret>y ( ! ,treasury may det]m9e     
appropriate1 z prescrib$ 9 guidance     
issu$ 9 consultation ) ! ,secret>y (    
,labor4  ,= purposes ( ?is subsection1  
any eligibility to p>ticipate 9 ! plan  
foll[+ any p]iod = :i* su* employee 0 n 
eligible to p>ticipate %all be treat$ z 
initial eligibility4  7#c7 ,annual      
rem9d] notice ,= purposes ( ?is         
subsection1 ! t]m annual rem9d] notice  
means ! notice describ$ 9 section       
#aaa7;c7 ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd4  4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to plan ye>s beg9n+  

aft] ,decemb] #ca1 #bjba4  #aa4 ,recov]y
 ( retirem5t plan ov]paym5ts  7a7       
,ov]paym5ts "u ,,erisa ,section #bjf ( !
 ,employee ,retirem5t ,income ,security 
,act ( #aigd 7#bi ,u4,s4,c4 #ajef7 is   
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7h7 ,special rules         
applicable to b5efit ov]paym5ts  7#a7   
,g5]al rule ,9 ! case ( an inadv]t5t    
b5efit ov]paym5t by any p5sion plan1 !  
responsible plan fiduci>y %all n be     
consid]$ to h fail$ to comply ) !       
requirem5ts ( ?is title m]ely because   
su* fiduci>y det]m9es1 9 ! ex]cise ( its
 fiduci>y discretion1 n to seek recov]y 
( all or "p ( su* ov]paym5t f-- 7,a7 any
 p>ticipant or b5efici>y1  7,b7 any plan
 sponsor (1 or contribut+ employ] to--  
7i7 an individual acc\nt plan1 provid$ t
 ! am\nt ne$$ to prev5t or re/ore any   
imp]missible =feiture f any p>ticipant's
 or b5efici>y's acc\nt aris+ 9          
connection ) ! ov]paym5t is1 sep>ately f
 & indep5d5tly ( ! ov]paym5t1 allocat$  
to su* acc\nt pursuant to !             

non=feitability requirem5ts ( section   
#bjc 7= example1 out ( ! plan's =feiture
 acc\nt1 additional employ]             
contributions1 or recov]ies f ^?        
responsible = ! ov]paym5t71 or  7ii7 a  
def9$ b5efit p5sion plan subject to !   
fund+ rules 9 "p #c ( ?is subtitle ,b1  
unless ! responsible plan fiduci>y      
det]m9es1 9 ! ex]cise ( its fiduci>y    
discretion1 t failure to recov] all or  
"p ( ! ov]paym5t fa/] ?an requir$ "u su*
 fund+ rules w\ld mat]ially affect !    
plan's ability to pay b5efits due to o!r
 p>ticipants & b5efici>ies1 or  7,c7 any
 fiduci>y ( ! plan1 o!r ?an a fiduci>y  
7includ+ a plan sponsor or contribut+   
employ] act+ 9 a fiduci>y capacity7 ^:  
brea* ( its fiduci>y duties result$ 9   
su* ov]paym5t1 provid$ t if ! plan has  
e/abli%$ prud5t proc$ures to prev5t &   
m9imize ov]paym5t ( b5efits & ! relevant
 plan fiduci>ies h foll[$ su* proc$ures1
 an inadv]t5t b5efit ov]paym5t w n give 
rise to a brea* ( fiduci>y duty4  7#b7  
,r$uction 9 future b5efit paym5ts &     

recov]y f responsible p>ty ,p>agraph    
7#a7 %all n fail to apply ) respect to  
any inadv]t5t b5efit ov]paym5t m]ely    
because1 aft] discov]+ su* ov]paym5t1 ! 
responsible plan fiduci>y-- 7,a7 r$uces 
future b5efit paym5ts to ! correct am\nt
 provid$ = "u ! t]ms ( ! plan1 or  7,b7 
seeks recov]y f ! p]son or p]sons       
responsible = ! ov]paym5t4  7#c7        
,employ] fund+ obligations ,no?+ 9 ?is  
subsection %all relieve an employ] ( any
 obligation impos$ on x to make         
contributions to a plan to meet ! m9imum
 fund+ /&>ds "u "p #c ( ?is subtitle ,b 
or to prev5t or re/ore an imp]missible  
=feiture 9 accordance ) section #bjc4   
7#d7 ,rec\pm5t f p>ticipants &          
b5efici>ies ,if ! responsible plan      
fiduci>y1 9 ! ex]cise ( its fiduci>y    
discretion1 decides to seek rec\pm5t f a
 p>ticipant or b5efici>y ( all or "p (  
an inadv]t5t b5efit ov]paym5t made by ! 
plan to su* p>ticipant or b5efici>y1 x  
may d s1 subject to ! foll[+ conditions3
 7,a7 ,no int]e/ or o!r additional      

am\nts 7su* z collection co/s or fees7  
are s\ght on ov]paid am\nts = any p]iod 
be=e or aft] ! date ( correction ( su*  
ov]paym5t4  7,b7 ,if ! plan seeks to    
rec\p pa/ ov]paym5ts ( a non-decreas+   
p]iodic b5efit by r$uc+ future b5efit   
paym5ts-- 7i7 ! r$uction ceases aft] !  
plan has recov]$ ! full doll> am\nt ( ! 
ov]paym5t1  7ii7 ! am\nt rec\p$ ea*     
cal5d> ye> does n exce$ #aj p]c5t ( !   
full doll> am\nt ( ! ov]paym5t1 &  7iii7
 future b5efit paym5ts are n r$uc$ to   
bel[ #ij p]c5t ( ! p]iodic am\nt o!rwise
 payable "u ! t]ms ( ! plan4            
,alt]natively1 if ! plan seeks to rec\p 
pa/ ov]paym5ts ( a non-decreas+ p]iodic 
b5efit ?r\gh "o or m in/allm5t paym5ts1 
! sum ( su* in/allm5t paym5ts 9 any     
cal5d> ye> does n exce$ ! sum ( !       
r$uctions t w\ld be p]mitt$ 9 su* ye> "u
 ! prec$+ s5t5ce4  7,c7 ,if ! plan seeks
 to rec\p pa/ ov]paym5ts ( a b5efit o!r 
?an a non-decreas+ p]iodic b5efit1 !    
plan satisfies requirem5ts develop$ by !
 ,secret>y = purposes ( ?is subp>agraph4

  7,d7 ,ef=ts to rec\p ov]paym5ts are-- 
7i7 n accompani$ by ?reats ( litigation1
 unless ! responsible plan fiduci>y     
reasonably believes x c\ld prevail 9 a  
civil action br\ght 9 ,f$]al or ,/ate   
c\rt to rec\p ! ov]paym5ts1 &  7ii7 n   
made ?r\gh a collection ag5cy or simil> 
?ird p>ty1 unless ! p>ticipant or       
b5efici>y ignores or rejects ef=ts to   
rec\p ! ov]paym5t foll[+ ei!r a f9al    
judgm5t 9 ,f$]al or ,/ate c\rt or a     
settlem5t betwe5 ! p>ticipant or        
b5efici>y & ! plan1 9 ei!r case au?oriz+
 su* rec\pm5t4  7,e7 ,rec\pm5t ( pa/    
ov]paym5ts to a p>ticipant is n s\ght f 
any b5efici>y ( ! p>ticipant1 includ+ a 
sp\se1 surviv+ sp\se1 =m] sp\se1 or o!r 
b5efici>y4  7,f7 ,rec\pm5t may n be     
s\ght if ! fir/ ov]paym5t occurr$ m ?an 
#c ye>s be=e ! p>ticipant or b5efici>y  
is fir/ notifi$ 9 writ+ ( ! error4  7,g7
 ,a p>ticipant or b5efici>y f :om       
rec\pm5t is s\ght is entitl$ to conte/  
all or "p ( ! rec\pm5t pursuant to !    
plan's claims proc$ures4  7,h7 ,9       

det]m9+ ! am\nt ( rec\pm5t to seek1 !   
responsible plan fiduci>y may take into 
acc\nt ! h>d%ip t rec\pm5t likely w\ld  
impose on ! p>ticipant or b5efici>y4    
7#e7 ,effect ( culpability ,subp>agraphs
 7,a7 ?r\gh 7,f7 ( p>agraph 7#d7 %all n 
apply to protect a p>ticipant or        
b5efici>y :o is culpable4 ,= purposes ( 
?is p>agraph1 a p>ticipant or b5efici>y 
is culpable if ! individual be>s        
responsibility = ! ov]paym5t 7su* z     
?r\gh misrepres5tations or omissions t  
l$ to ! ov]paym5t71 or if ! individual  
knew1 or _h good reason to "k "u !      
circum/ances1 t ! b5efit paym5t or      
paym5ts 7 mat]ially 9 excess ( ! correct
 am\nt4 ,not)/&+ ! prec$+ s5t5ce1 an    
individual is n culpable m]ely because !
 individual believ$ ! b5efit paym5t or  
paym5ts 7 or might be 9 excess ( !      
correct am\nt1 if ! individual rais$ t  
"q ) an au?oriz$ plan repres5tative & 0 
told ! paym5t or paym5ts 7 n 9 excess ( 
! correct am\nt4 ,) respect to a        
culpable p>ticipant or b5efici>y1 ef=ts 

to rec\p ov]paym5ts %all n be made ?r\gh
 ?reats ( litigation1 unless a lawy] = !
 plan c\ld make ! repres5tations requir$
 "u ,rule #aa ( ! ,f$]al ,rules ( ,civil
 ,proc$ure if ! litigation 7 br\ght 9   
,f$]al c\rt4  4  7b7 ,ov]paym5ts "u     
,int]nal ,rev5ue ,code ( #aihf  7#a7    
,qualification requirem5ts ,section #dad
 ( ! ,int]nal ,rev5ue ,code ( #aihf1 is 
fur!r am5d$ by add+ at ! end ! foll[+   
new subsection3  7bb7 ,special rules    
applicable to b5efit ov]paym5ts  7#a7 ,9
 g5]al ,a plan %all n fail to be treat$ 
z describ$ 9 clause 7i71 7ii71 7iii71 or
 7iv7 ( section #bai7;g77#e77;,a7 7&    
%all n fail to be treat$ z satisfy+ !   
requirem5ts ( section #dja7;a7 or #djc7 
m]ely because-- 7,a7 ! plan fails to    
obta9 paym5t f any p>ticipant1          
b5efici>y1 employ]1 plan sponsor1       
fiduci>y1 or o!r p>ty on acc\nt ( any   
inadv]t5t b5efit ov]paym5t made by !    
plan1 or  7,b7 ! plan sponsor am5ds !   
plan to r$uce pa/ or future b5efit      
paym5ts to affect$ p>ticipants &        

b5efici>ies 9 ord] to adju/ = prior     
inadv]t5t b5efit ov]paym5ts4  7#b7      
,r$uction 9 future b5efit paym5ts &     
recov]y f responsible p>ty ,p>agraph    
7#a7 %all n fail to apply to a plan     
m]ely because1 aft] discov]+ a b5efit   
ov]paym5t1 su* plan-- 7,a7 r$uces future
 b5efit paym5ts to ! correct am\nt      
provid$ = "u ! t]ms ( ! plan1 or  7,b7  
seeks recov]y f ! p]son or p]sons       
responsible = su* ov]paym5t4  7#c7      
,employ] fund+ obligations ,no?+ 9 ?is  
subsection %all relieve an employ] ( any
 obligation impos$ on x to make         
contributions to a plan to meet ! m9imum
 fund+ /&>ds "u sections #dab & #dcj or 
to prev5t or re/ore an imp]missible     
=feiture 9 accordance ) section #daa4   
7#d7 ,obs]vance ( b5efit limitations    
,not)/&+ p>agraph 7#a71 a plan to :i*   
p>agraph 7#a7 applies %all obs]ve any   
limitations impos$ on x by section      
#dja7;a77#ag7 or #dae4 ,! plan may en=ce
 su* limitations us+ any me?od approv$  
by ! ,secret>y ( ! ,treasury = rec\p+   

b5efits previ\sly paid or allocations   
previ\sly made 9 excess ( su*           
limitations4  7#e7 ,coord9ation ) o!r   
qualification requirem5ts ,! ,secret>y (
 ! ,treasury may issue regulations or   
o!r guidance ( g5]al applicability      
specify+ h[ b5efit ov]paym5ts & _!      
rec\pm5t or non-rec\pm5t f a p>ticipant 
or b5efici>y %all be tak5 into acc\nt = 
purposes ( satisfy+ any requirem5t      
applicable to a plan to :i* p>agraph    
7#a7 applies4  4  7#b7 ,rollov]s        
,section #djb7;c7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 
7#ab7 ,9 ! case ( an inadv]t5t b5efit   
ov]paym5t f a plan to :i* section       
#dad7;bb77#a7 applies t is transf]r$ to 
an eligible retirem5t plan by or on     
behalf ( a p>ticipant or b5efici>y--    
7,a7 ! portion ( su* ov]paym5t ) respect
 to :i* rec\pm5t is n s\ght on behalf ( 
! plan %all be treat$ z hav+ be5 paid 9 
an eligible rollov] di/ribution if !    
paym5t w\ld h be5 an eligible rollov]   
di/ribution b = be+ an ov]paym5t1 &     

7,b7 ! portion ( su* ov]paym5t ) respect
 to :i* rec\pm5t is s\ght on behalf ( ! 
plan %all be p]mitt$ to be return$ to   
su* plan & 9 su* case %all be treat$ z  
an eligible rollov] di/ribution         
transf]r$ to su* plan by ! p>ticipant or
 b5efici>y :o receiv$ su* ov]paym5t 7& !
 plans mak+ & receiv+ su* transf] %all  
be treat$ z p]mitt+ su* transf]74  ,9   
any case 9 :i* rec\pm5t is s\ght on     
behalf ( ! plan b is disput$ by !       
p>ticipant or b5efici>y :o receiv$ su*  
ov]paym5t1 su* dispute %all be subject  
to ! claims proc$ures ( ! plan t made   
su* ov]paym5t1 su* plan %all notify !   
plan receiv+ ! rollov] ( su* dispute1 & 
! plan receiv+ ! rollov] %all reta9 su* 
ov]paym5t on behalf ( ! p>ticipant or   
b5efici>y 7& %all be entitl$ to treat   
su* ov]paym5t z plan assets7 p5d+ !     
outcome ( su* proc$ures4  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply z ( ! date ( !       
enactm5t ( ?is ,act4  7d7 ,c]ta9 actions
 be=e date ( enactm5t ,plans1           

fiduci>ies1 employ]s1 & plan sponsors   
are entitl$ to rely on-- 7#a7 a good    
fai? int]pretation ( !n exi/+           
adm9i/rative guidance = inadv]t5t b5efit
 ov]paym5t rec\pm5ts & recov]ies t      
comm5c$ be=e ! date ( enactm5t ( ?is    
,act1 &  7#b7 det]m9ations made be=e !  
date ( enactm5t ( ?is ,act by !         
responsible plan fiduci>y1 9 ! ex]cise (
 its fiduci>y discretion1 n to seek     
rec\pm5t or recov]y ( all or "p ( an    
inadv]t5t b5efit ov]paym5t4  ,9 ! case (
 a b5efit ov]paym5t t occurr$ prior to !
 date ( enactm5t ( ?is ,act1 any        
in/allm5t paym5ts by ! p>ticipant or    
b5efici>y to ! plan or any r$uction 9   
p]iodic b5efit paym5ts to ! p>ticipant  
or b5efici>y1 :i* 7 made 9 rec\pm5t (   
su* ov]paym5t & :i* comm5c$ prior to su*
 date1 may cont9ue aft] su* date4 ,no?+ 
9 ?is subsection %all relieve a fiduci>y
 f responsibility = an ov]paym5t t      
result$ f a brea* ( its fiduci>y duties4
  #ab4 ,improv+ cov]age = "p-"t work]s  
7a7 ,am5dm5t ( ,employee ,retirem5t     

,income ,security ,act ( #aigd  7#a7 ,9 
g5]al ,section #bjb ( ! ,employee       
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajeb7 is am5d$ by 
add+ at ! end ! foll[+ new subsection3  
7c7 ,special rule = c]ta9 "p-"t         
employees  7#a7 ,9 g5]al ,a p5sion plan 
t includes ei!r a qualifi$ ca% or def]r$
 arrangem5t 7z def9$ 9 section #dja7k7 (
 ! ,int]nal ,rev5ue ,code ( #aihf7 or a 
sal>y r$uction agreem5t 7z describ$ 9   
section #djc7;b7 ( su* ,code7 %all n    
require1 z a condition ( p>ticipation 9 
! arrangem5t or agreem5t1 t an employee 
complete a p]iod ( s]vice ) ! employ]   
7or employ]s7 ma9ta9+ ! plan ext5d+     
beyond ! close ( ! e>li] (-- 7,a7 !     
p]iod p]mitt$ "u subsection 7a77#a7     
7det]m9$ )\t reg>d to subp>agraph       
7,b77i7 !re(72 or  7,b7 ! fir/ #bd-mon? 
p]iod-- 7i7 consi/+ ( #b consecutive    
#ab-mon? p]iods dur+ ea* ( :i* !        
employee has at lea/ #ejj h\rs ( s]vice2
 &  7ii7 by ! close ( :i* ! employee has
 atta9$ ! age ( #ba4  7#b7 ,exception   

,p>agraph 7#a77;,b7 %all n apply to any 
employee describ$ 9 section #daj7;b77#c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf4    
7#c7 ,coord9ation ) o!r rules  7,a7 ,9  
g5]al ,9 ! case ( employees :o are      
eligible to p>ticipate 9 ! arrangem5t or
 agreem5t solely by reason ( p>agraph   
7#a77;,b73 7i7 ,exclusions ,an employ]  
may elect to exclude su* employees f !  
application ( subsections 7a77#d71      
7k77#c71 7k77#ab71 7k77#ac71            
7k77#ae77;,b77i77,i71 & 7m77#b7 (       
section #dja ( ! ,int]nal ,rev5ue ,code 
( #aihf & section #daj7;b7 ( su* ,code4 
7ii7 ,"t ( p>ticipation ,! rules (      
subsection 7a77#d7 %all apply to su*    
employees4  7,b7 ,top-heavy rules ,an   
employ] may elect to exclude all        
employees :o are eligible to p>ticipate 
9 a plan ma9ta9$ by ! employ] solely by 
reason ( p>agraph 7#a77;,b7 f !         
application ( ! ve/+ & b5efit           
requirem5ts "u subsections 7b7 & 7c7 (  
section #daf ( ! ,int]nal ,rev5ue ,code 
( #aihf4  7#d7 #ab-mon? p]iod ,=        

purposes ( ?is subsection1 #ab-mon?     
p]iods %all be det]m9$ 9 ! same mann] z 
"u ! la/ s5t5ce ( subsection            
7a77#c77;,a71 except t #ab-mon? p]iods  
beg9n+ be=e ,janu>y #a1 #bjba1 %all n be
 tak5 into acc\nt4  7#b7 ,ve/+ ,section 
#bjc7;b7 ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajec7;a77 is am5d$ by        
r$esignat+ p>agraph 7#d7 z p>agraph 7#e7
 & by ins]t+ aft] p>agraph 7#c7 ! foll[+
 new p>agraph3  7#d7 ,"p-"t employees ,=
 purposes ( det]m9+ :e!r an employee :o 
is eligible to p>ticipate 9 a qualifi$  
ca% or def]r$ arrangem5t or a sal>y     
r$uction agreem5t "u a plan solely by   
reason ( section #bjb7;c77#a77;,b7 has a
 non=feitable "r to employ]             
contributions-- 7,a7 except z provid$ 9 
subp>agraph 7,b71 ea* #ab-mon? p]iod =  
:i* ! employee has at lea/ #ejj h\rs (  
s]vice %all be treat$ z a ye> ( s]vice2 
7,b7 p>agraph 7#c7 %all be appli$ by    
sub/itut+ at lea/ #ejj h\rs ( s]vice = m
 ?an #ejj h\rs ( s]vice 9 subp>agraph   

7,a7 !re(2 &  7,c7 #ab-mon? p]iods      
occurr+ be=e ! #bd-mon? p]iod describ$ 9
 section #bjb7;c77#a77;,b7 %all n be    
treat$ z ye>s ( s]vice4  ,= purposes (  
?is p>agraph1 #ab-mon? p]iods %all be   
det]m9$ 9 ! same mann] z "u ! la/ s5t5ce
 ( section #bjb7;a77#c77;,a71 except t  
#ab-mon? p]iods beg9n+ be=e ,janu>y #a1 
#bjba1 %all n be tak5 into acc\nt4  4   
7#c7 ,pre-#bjba s]vice ,section #aab7;b7
 ( ! ,sett+ ,e ,community ,up =         
,retirem5t ,enhancem5t ,act ( #bjai 7#bf
 ,u4,s4,c4 #dja note7 is am5d$ by /rik+ 
section #dja7k77#b77;,d77ii7 & ins]t+   
p>agraphs 7#b77;,d77ii7 &               
7#ae77;,b77iii7 ( section #dja7k74  7b7 
,con=m+ am5dm5ts to ,int]nal ,rev5ue    
,code ( #aihf  7#a7 ,9 g5]al ,section   
#daj7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#f7 ,special rule =    
c]ta9 "p-"t employees  7,a7 ,9 g5]al ,9 
! case ( a plan t includes ei!r a       
qualifi$ ca% or def]r$ arrangem5t 7z    
def9$ 9 section #dja7k771 a tru/ ( :i*  

su* plan is a "p %all n con/itute a     
qualifi$ tru/ "u section #dja7;a7 if !  
plan requires1 z a condition (          
p>ticipation 9 ! plan or arrangem5t1 t  
an employee complete a p]iod ( s]vice ) 
! employ] 7or employ]s7 ma9ta9+ ! plan  
ext5d+ beyond ! close ( ! e>li] (-- 7i7 
! p]iod p]mitt$ "u p>agraph 7#a7        
7det]m9$ )\t reg>d to subp>agraph       
7,b77i7 !re(71 or  7ii7 ! fir/ #bd-mon? 
p]iod-- 7,i7 consi/+ ( #b consecutive   
#ab-mon? p]iods dur+ ea* ( :i* !        
employee has at lea/ #ejj h\rs ( s]vice1
 &  7,,ii7 by ! close ( :i* ! employee  
has atta9$ ! age ( #ba4  7,b7 ,exception
 ,subp>agraph 7,a77ii7 %all n apply to  
any employee describ$ 9 section         
#daj7;b77#c74  7,c7 ,coord9ation ) o!r  
rules  7i7 ,9 g5]al ,9 ! case (         
employees :o are eligible to p>ticipate 
9 ! arrangem5t or agreem5t solely by    
reason ( subp>agraph 7,a77ii7-- 7,i7    
,exclusions ,an employ] may elect to    
exclude su* employees f ! application ( 
subsection 7b7 & ( subsections 7a77#d71 

7k77#c71 7k77#ab71 7k77#ac71            
7k77#ae77;,b77i77,i71 & 7m77#b7 (       
section #dja4  7,,ii7 ,"t ( p>ticipation
 ,! rules ( p>agraph 7#d7 %all apply to 
su* employees4  7ii7 ,top-heavy rules   
,an employ] may elect to exclude all    
employees :o are eligible to p>ticipate 
9 a plan ma9ta9$ by ! employ] solely by 
reason ( subp>agraph 7,a77ii7 f !       
application ( ! ve/+ & b5efit           
requirem5ts "u subsections 7b7 & 7c7 (  
section #daf4  7,d7 #ab-mon? p]iod ,=   
purposes ( ?is p>agraph1 #ab-mon? p]iods
 %all be det]m9$ 9 ! same mann] z "u !  
la/ s5t5ce ( p>agraph 7#c77;,a71 except 
t #ab-mon? p]iods beg9n+ be=e ,janu>y   
#a1 #bjba1 %all n be tak5 into acc\nt4  
4  7#b7 ,ve/+ ,section #daj7;a7 ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+3  7#g7 ,"p-"t 
employees ,= purposes ( det]m9+ :e!r an 
employee :o is eligible to p>ticipate 9 
a qualifi$ ca% or def]r$ arrangem5t or a
 sal>y r$uction agreem5t "u a plan      
solely by reason ( p>agraph             

7#f77;,a77ii7 has a non=feitable "r to  
employ] contributions-- 7,a7 except z   
provid$ 9 subp>agraph 7,b71 ea* #ab-mon?
 p]iod = :i* ! employee has at lea/ #ejj
 h\rs ( s]vice %all be treat$ z a ye> ( 
s]vice1  7,b7 section #daa7;a77#f7 %all 
be appli$ by sub/itut+ at lea/ #ejj h\rs
 ( s]vice = m ?an #ejj h\rs ( s]vice 9  
subp>agraph 7,a7 !re(1 &  7,c7 #ab-mon? 
p]iods occurr+ be=e ! #bd-mon? p]iod    
describ$ 9 p>agraph 7#f77;,a77ii7 %all n
 be treat$ z ye>s ( s]vice4  ,= purposes
 ( ?is p>agraph1 #ab-mon? p]iods %all be
 det]m9$ 9 ! same mann] z "u p>agraph   
7#f77;,d74  4  ,febru>y #be1            
#bjbb,report$ f ! ,committee on         
,education & ,labor ) an                
amendment,february #be1 #bjbb;,committee
 on ,ways & ,means dis*>g$2 committ$ to 
! ,committee ( ! ,:ole ,h\se on ! ,/ate 
( ! ,union & ord]$ to be pr9t$