,,ii  #aag? ,,congress  #b;d ,session   
,s4 #cgea  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #c1 #bjbb,mr4     
,casey 7= himself & ,mr4 ,scott ( ,s\?  
,c>ol9a7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd & ! ,int]nal ,rev5ue ,code ( #aihf
 to improve retirem5t plan cov]age =    
"p-"t work]s4  #a4 ,improv+ cov]age =   
"p-"t work]s  7a7 ,am5dm5ts to ,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 ) respect 
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 #bjbb1 %all n be
 tak5 into acc\nt4  4  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 
#bjbb1 %all n be tak5 into acc\nt4  4   
7b7 ,con=m+ am5dm5t to ,int]nal ,rev5ue 
,code ( #aihf ,section #daj7;a7 ( !     

,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraphs3
  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        
subsection 7b77#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 )  
respect 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 #bjbb1 %all n be tak5 into  
acc\nt4  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  7c7 ,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  7d7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to plan ye>s beg9n+ aft] ! date :i* is 
#a ye> aft] ! date ( ! enactm5t ( ?is   
,act4