,,ii #aaith ,,congress #ast ,session ,s4 #bcce ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ag1 #bjbe,mr4 ,sanders introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to require every employer to provide to their employees a retirement program with benefits equivalent to the ,federal ,employees ,retirement ,system or to elect for their employees to participate in the ,federal ,employees ,retirement ,system1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,pensions for ,all ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,covered retirement program ,the term covered retirement program means a retirement program other than ,,fers that the ,secretary determines provides benefits that are comparable to the benefits available under ,,fers to an employee 7as that term is defined under section #hdja of title #e1 ,united ,states ,code1 on the day before the date of enactment of this ,act74 7#b7 ,employee2 employer ,the terms employer and employee have the meanings given such terms in section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb74 7#c7 ,,fers ,the term ,,fers means the ,federal ,employees ,retirement ,system under chapter #hd of title #e1 ,united ,states ,code4 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 #c4 ,requirement to provide a retirement plan equivalent to ,,fers or to participate in ,,fers 7a7 ,initial coverage 7#a7 ,employers ,each employer shall-- 7,a7 make available to each employee employed by the employer a covered retirement program2 or 7,b7 notify the ,secretary that the employees of the employer will participate in ,,fers4 7#b7 ,self-employed enrollment ,each self-employed individual shall-- 7,a7 be enrolled in a covered retirement program2 or 7,b7 notify the ,secretary that the self-employed individual will participate in ,,fers4 7b7 ,subsequent coverage election 7#a7 ,options for employers ,at a frequency determined by the ,secretary1 in coordination with the ,director of the ,office of ,personnel ,management1 that is not less than annually1 an employer that has in effect a covered retirement program for the employees of the employer or with respect to whom the employees of the employer are participating in ,,fers may elect to-- 7,a7 in the case of an employer that has in effect a covered retirement program-- 7i7 cease making contributions to the covered retirement program for such employees2 and 7ii7 have each employee employed by the employer participate in ,,fers2 or 7,b7 in the case of an employer with respect to whom the employees of the employer are participating in ,,fers-- 7i7 have the employees cease participating in ,,fers2 and 7ii7 make available to each employee employed by the employer a covered retirement program4 7#b7 ,options for self-employed individuals ,at a frequency determined by the ,secretary1 in coordination with the ,director of the ,office of ,personnel ,management1 that is not less than annually1 a self-employed individual who is enrolled in a covered retirement program or is participating in ,,fers may elect to-- 7,a7 in the case of a self-employed individual who is enrolled in a covered retirement program-- 7i7 cease making contributions to the covered retirement program2 and 7ii7 participate in ,,fers2 or 7,b7 in the case of a self-employed individual who is participating in ,,fers-- 7i7 cease participating in ,,fers2 and 7ii7 enroll in a covered retirement program4 #d4 ,participation of non-,federal employees and self-employed individuals in ,,fers 7a7 ,definitions ,section #hdja of title #e1 ,united ,states ,code1 is amended-- 7#a7 by striking paragraph 7#b7 and inserting the following3 7#b7 the term basic pay-- 7,a7 except as provided in subparagraph 7,b71 has the meaning given such term by section #hcca7c72 and 7,b7 with respect to a covered self-employed individual1 means the annual income of the covered self-employed individual that is attributable to the activities of the individual as a covered self-employed individual2 2 7#b7 in paragraph 7#aa7-- 7,a7 in subparagraph 7,b71 by striking and at the end2 7,b7 in subparagraph 7,c71 by adding and at the end2 7,c7 by inserting after subparagraph 7,c7 the following3 7,d7 an individual who is-- 7i7 an covered non-,federal employee2 or 7ii7 a covered self-employed individual2 2 and 7,d7 in the matter following subparagraph 7,c71 by striking civilian service and inserting service in a position described in subparagraph 7,a71 7,b71 7,c71 or 7,d72 7#c7 in paragraph 7#ab71 by striking civilian2 7#d7 in paragraph 7#ca71 in the matter following subparagraph 7,c71 by striking civilian service and inserting service as an employee or ,member2 7#e7 in paragraph 7#ch77;,b71 by striking and at the end2 7#f7 in paragraph 7#ci71 by striking the period at the end and inserting a semicolon2 and 7#g7 by adding at the end the following3 7#dj7 the term covered non-,federal employer means an employer that is not a department1 agency1 or other instrumentality of the ,federal ,government and does not have in effect for all employees of the employer a retirement plan that the ,secretary of ,labor has determined provides benefits that are comparable to the benefits provided under the retirement program under this chapter2 7#da7 the term covered non-,federal employee means an individual employed by a covered non-,federal employer2 and 7#db7 the term covered self-employed individual means a self-employed individual who is not enrolled in a retirement plan other than the ,federal ,employees ,retirement ,system that the ,secretary of ,labor has determined provides benefits that are comparable to the benefits provided under the retirement program under this chapter4 4 7b7 ,eligibility for annuity ,section #hdaj of title #e1 ,united ,states ,code1 is amended by striking civilian service and inserting service as an employee or a ,member4 7c7 ,creditable service ,section #hdaa7;b7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by inserting subject to paragraphs 7#g7 and 7#h71 before employment2 7#b7 in paragraph 7#e71 by striking and at the end2 7#c7 in paragraph 7#f71 by striking the period at the end and inserting a semicolon2 and 7#d7 by inserting after paragraph 7#f7 the following3 7#g7 a period of service as a covered non-,federal employee performed after the date of enactment of this paragraph2 and 7#h7 a period during which an individual is a covered self-employed individual that occurs after the date of enactment of this paragraph4 2 7d7 ,phased retirement ,section #hdab;a7c77#e77;,a7 of title #e1 ,united ,states ,code1 is amended by striking creditable civilian service and inserting other service that is creditable under this chapter4 7e7 ,employee contributions ,section #hdbb of title #e1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking ,the employing agency and inserting ,subject to paragraph 7#d71 the employing agency2 7,b7 in paragraph 7#c71 by striking civilian each place it appears2 and 7,c7 by adding at the end the following3 7#d7 7,a7 ,a covered non-,federal employer shall deduct and withhold from the basic pay of each covered non-,federal employee of the covered non-,federal employer the percentage of basic pay that would be deducted and withheld from basic pay if the covered non-,federal employee were an employee of the ,federal ,government1 as determined in accordance with paragraphs 7#b7 and 7#c74 7,b7 ,for a covered self-employed individual1 an amount equal to the percentage of basic pay of the covered self-employed individual that would be deducted and withheld from basic pay if the covered non-,federal employee were an employee of the ,federal ,government1 as determined in accordance with paragraphs 7#b7 and 7#c71 shall be deemed to be deducted and withheld from the basic pay of the covered self-employed individual for purposes of subsection 7c71 and the covered self-employed individual shall deposit such amount in the ,treasury of the ,united ,states in accordance with such subsection4 2 and 7#b7 in subsection 7e77#a77;,b71 by striking civilian each place it appears4 7f7 ,employer contributions ,section #hdbc7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 in the matter preceding subparagraph 7,a71 by inserting 1 and1 subject to paragraph 7#d71 each covered non-,federal employer and each covered self-employed individual1 after section #hdbb7;a72 7#b7 by redesignating paragraph 7#d7 as paragraph 7#e72 and 7#c7 by inserting after paragraph 7#c7 the following3 7#d7 7,a7 ,in this paragraph-- 7i7 the term additional employer percentage1 with respect to a covered non-,federal employer1 means #ej percent of the percentage obtained by dividing-- 7,i7 the amount of the annual revenue of the covered non-,federal employer that is in excess of #be1jjj1jjj2 by 7,,ii7 #ge1jjj1jjj2 and 7ii7 the term additional self-employed percentage1 with respect to a covered self-employed individual1 means #ej percent of the percentage obtained by dividing-- 7,i7 the amount of the basic pay of the covered self-employed individual that is in excess of #ge1jjj2 by 7,,ii7 #ej1jjj4 7,b7 ,subject to subparagraphs 7,d7 and 7,e71 the amount contributed to the ,fund under paragraph 7#a7 by a covered non-,federal employer shall be reduced as follows3 7i7 ,for a covered non-,federal employer with annual revenue of not more than #be1jjj1jjj1 the amount required to be contributed shall be the amount equal to #ej percent of the otherwise applicable amount4 7ii7 ,for a covered non-,federal employer with annual revenue of more than #be1jjj1jjj and not more than #ajj1jjj1jjj1 the amount required to be contributed shall be the sum of-- 7,i7 the amount equal to #ej percent of the otherwise applicable amount2 and 7,,ii7 the amount equal to the additional employer percentage of the otherwise applicable amount4 7,c7 ,subject to subparagraph 7,e71 the amount contributed to the ,fund under paragraph 7#a7 by a covered self-employed individual shall be reduced as follows3 7i7 ,for a covered self-employed individual with basic pay of not more than #ge1jjj1 the amount required to be contributed shall be the amount equal to #ej percent of the otherwise applicable amount4 7ii7 ,for a covered self-employed individual with basic pay of more than #ge1jjj and not more than #abe1jjj1 the amount required to be contributed shall be the sum of-- 7,i7 the amount equal to #ej percent of the otherwise applicable amount2 and 7,,ii7 the amount equal to the additional self-employed percentage of the otherwise applicable amount4 7,d7 ,the amount of the reduction under subparagraph 7,b7 with respect to a covered non-,federal employer shall be reduced or eliminated based on the proportion of highly compensated employees of the covered non-,federal employer1 in accordance with regulations promulgated by the ,secretary of ,labor4 7,e7 7i7 ,a covered non-,federal employer may elect to have both the reduction under subparagraph 7,b7 of this paragraph and the reduction under section #hdcb7;c77#b77;,b7 not apply for any year4 7ii7 ,a covered self-employed individual may elect to have the reduction under subparagraph 7,c7 of this paragraph and the reduction under section #hdcb7;c77#b77;,c7 not apply for any year4 4 7g7 ,thrift savings plan 7#a7 ,transfers treated as a separation ,section #hdca7;a7 of title #e1 ,united ,states ,code1 is amended by inserting or employment at a covered non-,federal employer after ,government employment4 7#b7 ,contributions ,section #hdcb of title #e1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#a71 by striking ,an employee or ,member and inserting ,subject to paragraph 7#d71 an employee or ,member2 and 7ii7 by adding at the end the following3 7#d7 ,for a covered self-employed individual1 the covered self-employed individual may contribute to the ,thrift ,savings ,fund in such manner1 and at such frequency1 as the ,secretary of ,labor shall establish4 2 7,b7 in subsection 7c7-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a71 by inserting and each covered non-,federal employer after the employing agency2 7,,ii7 in subparagraph 7,c77iii71 by striking civilian2 and 7,,iii7 by adding at the end the following3 7,d7 7i7 ,a covered self-employed individual shall make contributions to the ,thrift ,savings ,fund for the benefit of the self-employed individual in the same amount as would be contributed by a covered non-,federal employer if the self-employed individual were an employee of the covered non-,federal employer4 7ii7 ,the ,secretary of ,labor shall establish the manner and frequency with which a covered self-employed individual shall make contributions to the ,thrift ,savings ,fund under this subparagraph4 2 7ii7 in paragraph 7#b7-- 7,i7 in subparagraph 7,a7-- 7aa7 by inserting 1 and1 subject to paragraph 7#d71 each covered non-,federal employer and covered self-employed individual1 after the employing agency2 and 7bb7 by striking employing agency's contribution and inserting contribution of the employing agency1 covered non-,federal employer2 and 7,,ii7 in subparagraph 7,b71 in the matter preceding clause 7i71 by inserting or1 subject to paragraph 7#d71 covered non-,federal employer1 or covered self-employed individual after employing agency2 and 7iii7 by adding at the end the following3 7#d7 7,a7 ,in this paragraph-- 7i7 the term additional employer percentage1 with respect to a covered non-,federal employer1 means #ej percent of the percentage obtained by dividing-- 7,i7 the amount of the annual revenue of the covered non-,federal employer that is in excess of #be1jjj1jjj2 by 7,,ii7 #ge1jjj1jjj2 and 7ii7 the term additional self-employed percentage1 with respect to a covered self-employed individual1 means #ej percent of the percentage obtained by dividing-- 7,i7 the amount of the basic pay of the covered self-employed individual that is in excess of #ge1jjj2 by 7,,ii7 #ej1jjj4 7,b7 ,subject to subparagraphs 7,d7 and 7,e71 the amount contributed to the ,thrift ,savings ,fund under paragraphs 7#a7 and 7#b7 by a covered non-,federal employer shall be reduced as follows3 7i7 ,for a covered non-,federal employer with annual revenue of not more than #be1jjj1jjj1 the amount required to be contributed shall be the amount equal to #ej percent of the otherwise applicable amount4 7ii7 ,for a covered non-,federal employer with annual revenue of more than #be1jjj1jjj and not more than #ajj1jjj1jjj1 the amount required to be contributed shall be the sum of-- 7,i7 the amount equal to #ej percent of the otherwise applicable amount2 and 7,,ii7 the amount equal to the additional employer percentage of the otherwise applicable amount4 7,c7 ,subject to subparagraph 7,e71 the amount contributed to the ,thrift ,savings ,fund under paragraphs 7#a7 and 7#b7 by a covered self-employed individual shall be reduced as follows3 7i7 ,for a covered self-employed individual with basic pay of not more than #ge1jjj1 the amount required to be contributed shall be the amount equal to #ej percent of the otherwise applicable amount4 7ii7 ,for a covered self-employed individual with basic pay of more than #ge1jjj and not more than #abe1jjj1 the amount required to be contributed shall be the sum of-- 7,i7 the amount equal to #ej percent of the otherwise applicable amount2 and 7,,ii7 the amount equal to the additional self-employed percentage of the otherwise applicable amount4 7,d7 ,the amount of the reduction under subparagraph 7,b7 with respect to a covered non-,federal employer shall be reduced or eliminated based on the proportion of highly compensated employees of the covered non-,federal employer1 in accordance with regulations promulgated by the ,secretary of ,labor4 7,e7 7i7 ,a covered non-,federal employer may elect to have both the reduction under subparagraph 7,b7 of this paragraph and the reduction under section #hdbc7;a77#d77;,b7 not apply for any year4 7ii7 ,a covered self-employed individual may elect to have the reduction under subparagraph 7,c7 of this subparagraph and the reduction under section #hdbc7;a77#d77;,c7 not apply for any year4 4 7#e7 7,a7 ,the ,secretary of ,labor shall1 at the frequency determined appropriate by the ,secretary1 compute the amount of the reduction in contributions by-- 7i7 a covered non-,federal employer under paragraph 7#d7 with respect to each covered non-,federal employee of the covered non-,federal employer2 and 7ii7 a covered self-employed individual under paragraph 7#d7 with respect to the covered self-employed individual4 7,b7 ,the ,secretary of the ,treasury shall1 in such installments as the ,secretary determines appropriate1 credit to the ,thrift ,savings ,fund-- 7i7 for the benefit of each covered non-,federal employee for whom the contributions by the covered non-,federal employer employing the covered non-,federal employee are reduced under paragraph 7#d7 an amount equal to the amount of the reduction2 and 7ii7 for the benefit of each covered self-employed individual for whom the contributions by the covered self-employed individual are reduced under paragraph 7#d7 an amount equal to the amount of the reduction4 2 7,c7 in subsection 7e7-- 7i7 by inserting 7#a7 before ,the sums required2 and 7ii7 by adding at the end the following3 7#b7 ,the sums required to be contributed to the ,thrift ,savings ,fund by a covered non-,federal employer or covered self-employed individual under subsection 7c7 for the benefit of a covered non-,federal employee or covered self-employed individual1 respectively1 shall be paid by the covered non-,federal employer or covered self-employed individual1 respectively1 in accordance with such procedures as the ,secretary of the ,treasury may1 in consultation with the ,executive ,director1 prescribe in regulations4 2 7,d7 in subsection 7g7-- 7i7 by inserting or employment at a covered non-,federal employer after ,government employment each place it appears2 7ii7 by striking civilian service each place it appears and inserting creditable service as an employee or ,member2 and 7iii7 in paragraph 7#e71 by inserting or by a covered non-,federal employer after the ,government2 and 7,e7 in subsection 7i77#a77;,b71 by striking civilian service and inserting service as an employee4 7#c7 ,payment of lost earnings ,section #hdcb;a of title #e1 ,united ,states ,code1 is amended-- 7,a7 by inserting or covered non-,federal employer after employing agency each place it appears1 except the second place it appears in subsection 7c72 7,b7 in subsection 7a7-- 7i7 in paragraph 7#a71 by inserting or covered non-,federal employer after such agency2 and 7ii7 in paragraph 7#b7-- 7,i7 in the matter preceding subparagraph 7,a71 by striking an employing agency's failure and inserting a failure by an employing agency or covered non-,federal employer2 and 7,,ii7 in subparagraph 7,a71 by inserting or covered non-,federal employer after the agency2 7,c7 in subsection 7b77#c71 by inserting 1 respectively1 before errors2 and 7,d7 in subsection 7c71 in the first sentence1 by inserting or paid by the covered non-,federal employer in accordance with such procedures as the ,secretary of the ,treasury may1 in consultation with the ,executive ,director1 prescribe in regulations after establishment4 7#d7 ,contributions of persons who perform military service ,section #hdcb;b of title #e1 ,united ,states ,code1 is amended-- 7,a7 by inserting or covered non-,federal employer after employing agency each place it appears2 7,b7 in subsection 7g77#a71 by inserting or covered non-,federal employer after the agency2 and 7,c7 in subsection 7h77#a71 by striking civilian service each place it appears and inserting service as an employee4 7#e7 ,contributions of certain persons reemployed after service with international organizations ,section #hdcb;c of title #e1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7c71 by inserting or covered non-,federal employer after the agency2 and 7,b7 in subsection 7e71 by striking civilian4 7#f7 ,benefits and election of benefits ,section #hdcc of title #e1 ,united ,states ,code1 is amended-- 7,a7 by striking ,government employment each place it appears and inserting service that is creditable under this chapter2 and 7,b7 in subsection 7c77#a71 by striking ,government service and inserting service that is creditable under this chapter4 7h7 ,rights of a widow or widower ,section #hddb7;b77#a7 of title #e1 ,united ,states ,code1 is amended1 in the matter preceding subparagraph 7,a71 by striking civilian service and inserting service as an employee4 7i7 ,rights of a child ,section #hddc7;a77#a7 of title #e1 ,united ,states ,code1 is amended1 in the matter preceding subparagraph 7,a71 by striking civilian service and inserting service as an employee4 7j7 ,disability retirement ,section #hdea7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by striking employee's agency each place it appears and inserting agency or covered non-,federal employer employing the employee2 and 7#b7 in paragraph 7#a77;,a71 by striking civilian service and inserting service as an employee4 7k7 ,recovery2 restoration of earning capacity ,section #hdee7;a77#a7 of title #e1 ,united ,states ,code1 is amended by inserting or a covered non-,federal employer or on becoming a covered self-employed individual after reemployment by the ,government4 7l7 ,authority of the office of personnel management ,section #hdfa7;h77#a7 of title #e1 ,united ,states ,code1 is amended by inserting 1 covered non-,federal employer1 and covered self-employed individual after ,each ,government agency4 7m7 ,annuities and pay on reemployment ,section #hdfh of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7k7 ,this section shall not apply to an individual serving in a position as a covered non-,federal employee or who is a covered self-employed individual4 4 #e4 ,credit for small employer and self-employed pension contributions 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf the following new section3 #cf;,a4 ,credit for small employer and self-employed pension contributions 7a7 ,in general ,in the case of an eligible taxpayer1 there shall be allowed as a credit against the tax imposed by subtitle ,a an amount equal to the contribution assistance amount with respect to such taxpayer for the taxable year4 7b7 ,contribution assistance amount ,in the case of an eligible taxpayer1 for purposes of this section-- 7#a7 ,in general ,the contribution assistance amount is an amount equal to the applicable percentage of the qualified pension contributions paid by the eligible taxpayer during the taxable year4 7#b7 ,applicable percentage ,for purposes of paragraph 7#a71 the applicable percentage is #ej percent1 reduced 7but not below zero7 by the number of percentage points which-- 7,a7 in the case of an employer1 bears the same ratio to #ej as the excess of-- 7i7 the gross receipts of the employer for the taxable year1 over 7ii7 #be1jjj1jjj1 bears to #ge1jjj1jjj1 and 7,b7 in the case of a self-employed individual1 bears the same ratio to #ej as the excess of-- 7i7 the income of the individual for the taxable year1 over 7ii7 #ge1jjj1 bears to #ej1jjj4 7#c7 ,qualified pension contributions ,the term qualified pension contributions means-- 7,a7 in the case of a covered non-,federal employer or covered self-employed individual1 the contributions made by such employer or individual under sections #hdbc7;a7 and #hdcb7;c7 of title #e1 ,united ,states ,code1 7,b7 in the case of any other employer1 the nonelective contributions made by such employer to a covered retirement program 7as defined in section #b of the ,pensions for ,all ,act7 on behalf of the employees of the employer1 and 7,c7 in the case of any other self-employed individual1 the contributions made by such individual to a covered retirement program 7as so defined7 of the individual4 7c7 ,eligible taxpayers1 etc ,for purposes of this section-- 7#a7 ,in general ,the term eligible taxpayer means-- 7,a7 any covered non-,federal employer making an election under both sections #hdbc7;a77#d77;,e77i7 and #hdcb7;c77#d77;,e77i7 of title #e1 ,united ,states ,code not to receive a reduction in employer contributions1 7,b7 any employer which is not a covered non-,federal employer1 7,c7 any covered self-employed individual making an election under both sections #hdbc7;a77#d77;,e77ii7 and #hdcb7;c77#d77;,e77ii7 of title #e1 ,united ,states ,code not to receive a reduction in contributions1 and 7,d7 any self-employed individual who is not a covered self-employed individual4 7#b7 ,covered non-,federal employer2 covered self-employed individual ,the terms covered non-,federal employer and covered self-employed individual have the respective meanings given such terms by section #hdja of title #e1 ,united ,states ,code4 7d7 ,coordination with other credits 7#a7 ,business credit treated as part of general business credit ,in the case of an employer1 the credit which 7but for this paragraph7 would otherwise be allowed under subsection 7a7 for any taxable year shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,denial of double benefit ,no deduction or credit shall be allowed under any other section of this title with respect to contributions to a plan 7including the ,federal ,employees ,retirement ,system under chapter #hd of title #e1 ,united ,states ,code7 if credit is allowable with respect to such contributions under subsection 7a7 7determined without regard to this subsection74 4 7b7 ,employer 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#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 in the case of an eligible taxpayer 7as defined in section #cf;,a7c771 the portion of the credit for small employer and self-employed pension contributions to which section #cf;,a7d77#a7 applies4 4 7c7 ,conforming amendment ,section #fbaa7;b77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 #cf;,a after #cf4 7d7 ,clerical amendment ,the table of sections for subpart ,c 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 #cf the following new item3 ,sec4 #cf;,a4 ,credit for small employer and self-employed pension contributions4 4 7e7 ,effective date ,the amendments made by this section shall apply to contributions made after the date of the enactment of this ,act4 #f4 ,failure to provide covered retirement program 7a7 ,in general ,chapter #dc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #dihj;,j4 ,failure to maintain required retirement program 7a7 ,general rule 7#a7 ,employers ,there is hereby imposed a tax on the failure of an employer either-- 7,a7 to make available a covered retirement program to all employees of the employer1 or 7,b7 in the case of a covered employer1 to make required contributions under sections #hdbc7;a7 and #hdcb7;c7 of title #e1 ,united ,states ,code with respect to the employees of the employer4 7#b7 ,self-employed individuals ,there is hereby imposed a tax on the failure of a self-employed individual either-- 7,a7 to participate in a covered retirement program1 or 7,b7 in the case of a covered self-employed individual1 to make required contributions under sections #hdbc7;a7 and #hdcb7;c7 of title #e1 ,united ,states ,code with respect to the individual4 7b7 ,amount of tax 7#a7 ,in general ,the amount of the tax imposed by subsection 7a7 on any failure with respect to an employee or self-employed individual shall be #aj for each day in the noncompliance period with respect to such failure4 7#b7 ,noncompliance period ,for purposes of this section1 the term noncompliance period means1 with respect to any failure1 the period-- 7,a7 beginning on the date such failure first occurs1 and 7,b7 ending on the earlier of-- 7i7 the date such failure is corrected1 or 7ii7 with respect to any employer1 the date that is #c months after the last date on which the employee is employed by the employer4 7#c7 ,adjustment for inflation 7,a7 ,in general ,in the case of any failure occurring in a calendar year beginning after #bjbf1 the #aj amount under paragraph 7#a7 shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year determined by substituting calendar year #bjbe for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any amount adjusted under subparagraph 7,a7 is not a whole dollar amount1 such amount shall be rounded to the nearest whole dollar amount4 7c7 ,limitations on amount of tax 7#a7 ,tax not to apply where failure not discovered exercising reasonable diligence ,no tax shall be imposed by subsection 7a7 on any failure during any period for which it is established to the satisfaction of the ,secretary that none of the persons referred to in subsection 7d7 knew1 nor exercising reasonable diligence would have known1 that such failure existed4 7#b7 ,overall limitation for unintentional failures ,in the case of failures which are due to reasonable cause and not to willful neglect-- 7,a7 ,general rule ,the tax imposed by subsection 7a7 for failures during the taxable year of the employer or self-employed individual shall not exceed #ejj1jjj4 7,b7 ,taxable years in the case of certain controlled groups ,for purposes of this subparagraph1 if not all persons who are treated as a single employer for purposes of this section have the same taxable year1 the taxable years taken into account shall be determined under principles similar to the principles of section #aefa4 7#c7 ,waiver by ,secretary ,in the case of a failure which is due to reasonable cause and not to willful neglect1 the ,secretary may waive part or all of the tax imposed by subsection 7a7 to the extent that the payment of such tax would be excessive relative to the failure involved4 7d7 ,employer liability for tax ,the employer shall be liable for the tax imposed by subsection 7a77#a7 on a failure4 ,all employers1 determined without regard to subsection 7e77#b71 shall be jointly and severally liable for the liability of any other employer with which they are aggregated under subsection 7e77#b74 7e7 ,definitions ,for purposes of this section-- 7#a7 ,terms relating to covered retirement programs1 etc ,any term used in this section which is defined in section #b of the ,pensions for ,all ,act has the meaning given such term by such section4 7#b7 ,employer ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as #a employer4 4 7b7 ,clerical amendment ,the table of sections for chapter #dc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #dihj;,j4 ,failure to maintain required retirement program4 4 7c7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbe4 #g4 ,prohibition on the reduction of compensation ,an employer that employs an employee on or before the date of enactment of this ,act may not reduce any form of compensation provided to the employee due to the requirement imposed by this ,act that the employee be enrolled in a covered retirement program or ,,fers4