,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bjjc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #aj1 #bjbe ,mr4  
,scott ( ,s\? ,c>ol9a 7= himself1 ,mr4  
,cassidy1 ,mr4 ,tillis1 & ,mr4 ,m>%all7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to p]mit c]ta9    
excess plan assets to be us$ = b5efits =
 active employees1 & = o!r purposes4    
#a4  ,%ort title  ,?is ,act may be cit$ 
z ! ,/r5g!n+ ,b5efit ,plans ,act (      
#bjbe4  ,i  ,support+ active employees )
 curr5t b5efit plan exp5ses  #aja4      
,transf] ( excess heal? assets = fund+  
active employee b5efits  7a7  ,9 g5]al  
,section #dbj ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subsection3  7h7  ,transf] ( 
excess heal? assets = fund+ active      
employee b5efits  7#a7  ,9 g5]al  ,9 !  
case ( a p5sion plan ) excess heal?     
assets = a fiscal ye>--  7,a7 an am\nt  
equal to su* excess heal? assets may be 

transf]r$ 9 accordance ) p>agraph 7#c7 f
 a heal? b5efits acc\nt e/abli%$ "u     
section #dja7;h71  7,b7 a tru/ :i* is "p
 ( su* plan %all n be treat$ z fail+ to 
meet ! requirem5ts ( subsection 7a7 or  
7h7 ( section #dja solely by reason (   
su* transf] 7or any o!r action au?oriz$ 
"u ?is subsection71  7,c7 no am\nt %all 
be includible 9 ! gross income ( !      
employ] ma9ta9+ ! plan solely by reason 
( su* transf]1  7,d7 su* transf] %all n 
be treat$-- 7i7 z an employ] rev]sion = 
purposes ( section #dihj1 or  7ii7 z a  
prohibit$ transaction = purposes (      
section #dige1 &  7,e7 ! limitations (  
p>agraph 7#d7 %all apply to ! employ]4  
7#b7  ,excess heal? assets  ,= purposes 
( ?is subsection-- 7,a7 ,9 g5]al ,! t]m 
excess heal? assets means ! am\nt by :i*
 ! applicable assets ) respect to a     
retiree heal? plan exce$ an am\nt equal 
to #abe p]c5t ( ! total liability ( !   
employ] = b5efits = all p>ticipants "u !
 retiree heal? plan1 det]m9$ 9          
accordance ) applicable acc\nt+ /&>ds4  

7,b7  ,limitation  ,9 det]m9+ excess    
heal? assets1 !re %all n be tak5 into   
acc\nt--  7i7 am\nts attributable to    
contributions 7o!r ?an transf]s "u any  
o!r subsection ( ?is section1 or        
contributions made pursuant to a legally
 b9d+ commitm5t ent]$ into be=e ,janu>y 
#a1 #bjbd7 made aft] ,decemb] #ca1      
#bjbc1 to any heal? b5efits acc\nt      
e/abli%$ "u section #dja7;h7 ) respect  
to ! retiree heal? plan1 or  7ii7 any   
r$uction 9 ! liability ( ! employ]      
describ$ 9 subp>agraph 7,a7 due to a    
r$uction 9 b5efits pursuant to an       
am5dm5t to ! retiree heal? plan adopt$  
aft] ,decemb] #ca1 #bjbc4  7,c7         
,t]m9at+ plans  ,9 ! case ( a t]m9at+   
p5sion plan :i* includes a heal? b5efits
 acc\nt "u section #dja7;h71 all assets 
9 su* heal? b5efits acc\nt %all be      
treat$ z excess heal? assets4  7,d7     
,applicable assets  ,= purposes (       
subp>agraph 7,a71 ! t]m applicable      
assets means all assets ) respect to a  
retiree heal? b5efits plan ( an         

employ]--  7i7 9 a heal? b5efits acc\nt 
e/abli%$ "u section #dja7;h71 or  7ii7  
held by a volunt>y employees' b5efici>y 
association 7z def9$ 9 section          
#eja7;c77#i774  7#c7  ,transf]s p]mitt$ 
7,a7  ,9 g5]al  ,a transf] "u ?is       
p>agraph is a transf]-- 7i7 ( excess    
heal? assets1 9 ! fiscal ye> imm$iately 
succe$+ ! fiscal ye> ) respect to :i*   
su* excess heal? assets are det]m9$--   
7,i7 to ! p5sion plan "u :i* a heal?    
b5efits acc\nt pursuant to section      
#dja7;h7 0 e/abli%$1 or  7,,ii7 z       
provid$ 9 subp>agraph 7,b77ii71 to a    
volunt>y employees' b5efici>y           
association 7z def9$ 9 section          
#eja7;c77#i771  7ii7 :i* does n         
contrav5e any o!r provision ( law1      
7iii7 ) respect to :i* ! use requirem5ts
 ( subp>agraphs 7,b7 & 7,c7 & ! m9imum  
co/ & b5efit requirem5ts ( p>agraph     
7#d77;,b7 are met1 &  7iv7 ) respect to 
:i* ! ve/+ requirem5ts ( subsection     
7c77#b7 are met 7det]m9$ by treat+ su*  
transf] z a qualifi$ transf]74  7,b7    

,use = active b5efits  7i7  ,9 g5]al    
,except z provid$ 9 clause 7ii71 a      
transf] ( excess heal? assets = purposes
 ( ?is subsection %all be us$ only to   
fund ! p5sion plan4  7ii7  ,transf] to  
volunt>y employees' b5efici>y           
association  ,a transf] describ$ 9      
subp>agraph 7,a77i77,,ii7 may be made   
only--  7,i7 9 ! case ( a def9$ b5efit  
plan1 to ! ext5t a transf] to su* plan z
 provid$ 9 subp>agraph 7,a77i77,i7 w\ld 
cause ! plan to h a fund+ excess or     
increase ! fund+ excess ( ! plan or1 if 
! transf] is made 9 connection ) !      
t]m9ation ( ! def9$ b5efit plan1 to !   
ext5t a transf] to su* plan w\ld exce$ !
 am\nt necess>y to satisfy ! p5sion     
liabilities ( ! t]m9at+ plan1 or  7,,ii7
 9 ! case ( a p5sion plan :i* is n a    
def9$ b5efit plan4  ,any transf] "u !   
prec$+ s5t5ce to a volunt>y employees'  
b5efit association 7z def9$ 9 section   
#eja7;c77#i77 %all be us$ only to pay   
any b5efits p]mitt$ to be paid by su*   
association to any memb]s ( su*         

association 7o!r ?an key employees n    
tak5 into acc\nt "u subsection          
7e77#a77;,e774  7iii7  ,fund+ excess  ,=
 purposes ( clause 7ii71 ! t]m fund+    
excess ) respect to a plan ye> means !  
excess1 if any1 (--  7,i7 ! fair m>ket  
value ( ! assets ( ! def9$ b5efit plan  
7o!r ?an applicable assets1 z def9$ 9   
p>agraph 7#b77;,d771 ov]  7,,ii7 #aaj   
p]c5t ( ! pres5t value ( all p5sion     
b5efits e>n$ or accru$ "u ! plan1 z     
det]m9$ = purposes ( det]m9+ ! adju/$   
fund+ t>get atta9m5t p]c5tage pursuant  
to section #dcf7;j74  7,c7  ,only #a    
transf] p] ye>  ,no m ?an #a transf] )  
respect to any plan may be made "u      
subp>agraph 7,a7 dur+ a taxable ye>4 ,= 
purposes ( ! prec$+ s5t5ce1 any transf] 
portions ( :i* are describ$ 9 bo?       
subclauses 7,i7 & 7,,ii7 ( subp>agraph  
7,a77i7 %all be treat$ z #a transf]4    
7#d7  ,limitations on employ]  7,a7     
,d$uction limitations  ,= purposes ( ?is
 title1 no d$uction %all be all[$--  7i7
 = ! transf] ( any am\nt "u p>agraph    

7#c77;,a71  7ii7 = b5efits paid out ( ! 
assets 7& income7 s transf]r$1 or  7iii7
 = any am\nts to :i* clause 7ii7 does n 
apply & :i* are paid = b5efits describ$ 
9 p>agraph 7#c77;,b77ii7 = ! taxable ye>
 to ! ext5t su* am\nts are n great] ?an 
! excess 7if any7 (--  7,i7 ! am\nt     
det]m9$ "u clause 7i7 7& income         
allocable !reto71 ov]  7,,ii7 ! am\nt   
det]m9$ "u clause 7ii74  7,b7 ,m9imum   
co/ & b5efit requirem5ts ,ea* plan or   
arrangem5t "u :i* b5efits fund$ z       
describ$ 9 p>agraph 7#c77;,b77ii7 are   
provid$ %all provide t--  7i7 !         
applicable employ] co/ = ea* ( ! #e     
taxable ye>s beg9n+ ) ! ye> ( ! transf] 
"u p>agraph 7#c77;,a7 %all n be         
mat]ially less ?an ! high] ( !          
applicable employ] co/s = ! ye> ( ! #b  
taxable ye>s imm$iately prec$+ ! taxable
 ye> ( su* transf]1 or  7ii7 b5efits    
provid$ "u ! plan or arrangem5t %all n  
be mat]ially r$uc$ dur+ ! #e ye> p]iod  
describ$ 9 clause 7i74  ,= purposes (   
clause 7i71 ! t]m applicable employ] co/

 %all be det]m9$ "u rules simil> to !   
rules ( subp>agraphs 7,b7 & 7,c7 (      
subsection 7c77#c71 z applicable to !   
b5efit be+ provid$ "u su* plan or       
arrangem5t4  7#e7  ,coord9ation )       
sections #dcj & #dcc  ,9 ! case ( any   
assets transf]r$ to a p5sion plan       
pursuant to p>agraph 7#c71 su* assets   
%all1 = purposes ( ?is section &        
sections #dcj & #dcc1 be treat$ z assets
 9 ! plan4  4  7b7  ,con=m+ am5dm5ts    
7#a7 ,subsection 7h7 ( section #dja ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+3 ,no?+ 9 ?is  
subsection or ?is section %all prev5t a 
plan f transf]r+ am\nts f an acc\nt     
e/abli%$ "u ?is subsection pursuant to !
 provisions ( section #dbj7;h744  7#b7  
,subp>agraph 7,b7 ( section #dbj7;c77#a7
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new clause3  7iii7  ,coord9ation
 ) transf]s ( excess heal? assets       
,clauses 7i7 & 7ii7 %all n apply to !   
am\nt ( any excess heal? assets         
transf]r$ f a heal? b5efits acc\nt to ! 

plan pursuant to subsection             
7h77#c77;,a74  4  7#c7 ,subsection 7e7 (
 section #dbj ( su* ,code is am5d$ by   
add+ at ! end ! foll[+ new p>agraph3    
7#h7  ,coord9ation ) transf]s ( excess  
heal? assets  7,a7  ,9 g5]al  ,a        
qualifi$ transf] or portion !re( %all n 
be subject to ! limitations (           
subsections 7b77#c71 7c77#a71           
7f77#b77;,c71 or 7f77#b77;,e7 to ! ext5t
 an am\nt equal to su* transf] 7or      
portion7 is transf]r$ dur+ ! same       
taxable ye> "u subsection 7h74  7,b7    
,m9imum co/ & b5efit requirem5ts  ,!    
requirem5ts ( subsection 7h77#d77;,b7   
%all apply 9 lieu ( subsections 7c77#c7 
& 7f77#b77;,d7 9 ! case ( a transf] or  
portion !re( to :i* subp>agraph 7,a7    
applies4  4  7#d7 ,subsection 7l7 (     
section #dcj ( su* ,code is am5d$ by    
add+ at ! end ! foll[+3 ,not)/&+ !      
prec$+ s5t5ce1 any assets transf]r$ to !
 plan pursuant to section #dbj7;h7 %all 
be treat$ z assets 9 ! plan44  7#e7     
,section #d ( ! ,employee ,retirem5t    

,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjc7 is am5d$ by add+ at !  
end ! foll[+ new subsection3  7d7       
,transf]s ( excess heal? assets  ,a     
p5sion plan %all n be treat$ z fail+ to 
meet ! requirem5ts ( ?is sub*apt] solely
 by reason ( any transf] made z p]mitt$ 
by section #dbj7;h7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf4  4  7#f7 ,section       
#cjc7l7 ( ! ,employee ,retirem5t ,income
 ,security ,act ( #aigd 7#bi ,u4,s4,c4  
#ajhc7l77 is am5d$ by add+ at ! end !   
foll[+3 ,not)/&+ ! prec$+ s5t5ce1 any   
assets transf]r$ to ! plan pursuant to  
section #dbj7;h7 ( su* ,code %all be    
treat$ z assets 9 ! plan44  7#g7        
,section #djh7;b77#ac7 ( su* ,act 7#bi  
,u4,s4,c4 #aajh7;b77#ac77 is am5d$ by   
/rik+ ! p]iod at ! end & ins]t+ 1 or any
 transf] ( excess heal? assets p]mitt$  
"u section #dbj7;h7 ( su* ,code 7z 9    
effect on ! date ( ! enactm5t ( !       
,/r5g!n+ ,b5efit ,plans ,act ( #bjbe744 
7c7  ,notice requirem5ts  ,section      
#aja7;e7 ( ! ,employee ,retirem5t       

,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajba7;e77 is am5d$ by add+ at
 ! end ! foll[+ new p>agraph3  7#d7     
,transf]s ( excess heal? assets  7,a7   
,notice to p>ticipants  ,n lat] ?an #fj 
days be=e ! date ( a transf] by an      
employee p5sion b5efit plan ( excess    
heal? assets pursuant to section        
#dbj7;h77#a7 ( ! ,int]nal ,rev5ue ,code 
( #aihf1 ! adm9i/rator ( ! plan %all    
provide notice 79 su* mann] z !         
,secret>y may prescribe7 ( su* transf]  
to ea* p>ticipant & b5efici>y eligible  
to receive b5efits paid f ! heal?       
b5efits acc\nt "u section #dja7;h7 ( su*
 ,code f :i* ! transf] is to be made4   
,su* notice %all include in=mation )    
respect to ! am\nt ( excess heal? assets
 to be transf]r$1 ! plan or volunt>y    
employees' b5efici>y association to :i* 
! transf] is to be made1 & ! am\nt (    
p5sion b5efits ( ! p>ticipant :i* w be  
non=feitable imm$iately aft] ! transf]4 
7,b7  ,notice to ,secret>ies1 etc       
,rules simil> to ! rules ( p>agraph 7#b7

 %all apply = purposes ( ?is p>agraph4  
4  7d7  ,effective date  ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbd4  ,,ii  ,support+ active employees
 ) retirem5t contributions  #bja4       
,transf] ( surplus def9$ b5efit plan    
assets to def9$ contribution plan  7a7  
,9 g5]al  ,section #dja ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7p7 z subsection  
7q7 & by ins]t+ aft] subsection 7o7 !   
foll[+ new subsection3  7p7  ,transf] ( 
surplus def9$ b5efit plan assets to     
def9$ contribution plan  7#a7  ,9 g5]al 
7,a7  ,transf] p]mitt$  ,if an employ]  
ma9ta9+ a def9$ b5efit plan e/abli%es or
 ma9ta9s a def9$ contribution plan :i*  
w\ld be a qualifi$ replacem5t plan 7z   
def9$ 9 section #dihj7;d77#b77 ) respect
 to ! def9$ b5efit plan b = ! fact t !  
def9$ b5efit plan is n t]m9at$1 subject 
to ! requirem5ts ( p>agraphs 7#c7 &     
7#d71 any surplus assets ( ! def9$      
b5efit plan may be transf]r$ to ! def9$ 

contribution plan4  7,b7  ,treatm5t (   
am\nt transf]r$  ,9 ! case ( ! transf] (
 any am\nt "u subp>agraph 7,a7--  7i7   
su* am\nt %all n be includible 9 ! gross
 income ( ! employ]1  7ii7 no d$uction  
%all be all[able ) respect to su*       
transf]1 &  7iii7 su* transf] %all n be 
treat$ z an employ] rev]sion = purposes 
( section #dihj4  7#b7  ,surplus assets 
,= purposes ( ?is subsection1 ! t]m     
surplus assets means ! excess ( assets (
 ! def9$ b5efit plan ov] an am\nt equal 
to #aaj p]c5t ( ! value ( plan          
liabilities us$ to det]m9e premiums     
impos$ "u title ,,iv ( ! ,employee      
,retirem5t ,income ,security ,act (     
#aigd = ! plan ye> ( ! transf]4  7#c7   
,ve/+ ( b5efits  ,! requirem5ts ( ?is   
p>agraph are met if all b5efits "u !    
def9$ b5efit plan become non=feitable 9 
! same mann] :i* w\ld be requir$ if !   
plan _h t]m9at$ imm$iately be=e !       
transf] 7or 9 ! case ( a p>ticipant :o  
sep>at$ dur+ ! #a-ye> p]iod end+ on !   
date ( ! transf]1 imm$iately be=e su*   

sep>ation74  7#d7  ,no r$uction 9       
b5efits  ,! requirem5ts ( ?is p>agraph  
are met if1 dur+ ! p]iod beg9n+ ) ! ye> 
( ! transf] & end+ #d plan ye>s aft] !  
la/ plan ye> dur+ :i* ! replacem5t plan 
is fund$ by ! transf]1 no b5efits "u !  
replacem5t plan are r$uc$4  4  7b7      
,con=m+ am5dm5ts  7#a7 ,section #d ( !  
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajjc71 z   
am5d$ by section #aja1 is fur!r am5d$ by
 add+ at ! end ! foll[+ new subsection3 
7e7  ,transf]s ( surplus def9$ b5efit   
plan assets  ,a p5sion plan %all n be   
treat$ z fail+ to meet ! requirem5ts (  
?is sub*apt] solely by reason ( any     
transf] made z p]mitt$ by section       
#dja7p7 ( ! ,int]nal ,rev5ue ,code (    
#aihf4  4  7#b7 ,section #djh7;b77#ac7 (
 su* ,act 7#bi ,u4,s4,c4                
#aajh7;b77#ac771 z am5d$ by section     
#aja1 is fur!r am5d$ by ins]t+ or (     
surplus def9$ b5efit plan assets p]mitt$
 "u section #dja7p7 ( su* ,code 7z s 9  
effect7 be=e ! p]iod at ! end4  7c7     

,notice requirem5ts  ,section #aja7;e7 (
 ! ,employee ,retirem5t ,income         
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajba7;e771 z am5d$ by section #aja1 is 
fur!r am5d$ by add+ at ! end ! foll[+   
new p>agraph3  7#e7  ,transf]s ( surplus
 def9$ b5efit plan assets  ,rules simil>
 to ! rules ( p>agraph 7#d7 %all apply 9
 ! case ( any transf] by an employee    
p5sion b5efit plan ( surplus def9$      
b5efit plan assets pursuant to section  
#dja7p7 ( ! ,int]nal ,rev5ue ,code (    
#aihf4  4  7d7  ,effective date  ,!     
am5dm5ts made by ?is section %all apply 
to plan ye>s beg9n+ aft] ,decemb] #ca1  
#bjbe4