,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bcce  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ag1 #bjbe,mr4   
,s&]s introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to require e       
employ] to provide to _! employees a    
retirem5t program ) b5efits equival5t to
 ! ,f$]al ,employees ,retirem5t ,sy/em  
or to elect = _! employees to p>ticipate
 9 ! ,f$]al ,employees ,retirem5t       
,sy/em1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,p5sions
 = ,all ,act4  #b4 ,def9itions ,9 ?is   
,act3 7#a7 ,cov]$ retirem5t program ,!  
t]m cov]$ retirem5t program means a     
retirem5t program o!r ?an ,,f]s t !     
,secret>y det]m9es provides b5efits t   
are comp>able to ! b5efits available "u 
,,f]s to an employee 7z t t]m is def9$  
"u section #hdja ( title #e1 ,unit$     
,/ates ,code1 on ! day be=e ! date (    
enactm5t ( ?is ,act74  7#b7 ,employee2  
employ] ,! t]ms employ] & employee h !  
mean+s giv5 su* t]ms 9 section #c ( !   

,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajjb74     
7#c7 ,,f]s ,! t]m ,,f]s means ! ,f$]al  
,employees ,retirem5t ,sy/em "u *apt]   
#hd ( title #e1 ,unit$ ,/ates ,code4    
7#d7 ,secret>y ,! t]m ,secret>y means ! 
,secret>y ( ,labor4  #c4 ,requirem5t to 
provide a retirem5t plan equival5t to   
,,f]s or to p>ticipate 9 ,,f]s  7a7     
,initial cov]age  7#a7 ,employ]s ,ea*   
employ] %all-- 7,a7 make available to   
ea* employee employ$ by ! employ] a     
cov]$ retirem5t program2 or  7,b7 notify
 ! ,secret>y t ! employees ( ! employ] w
 p>ticipate 9 ,,f]s4  7#b7 ,self-employ$
 enrollm5t ,ea* self-employ$ individual 
%all-- 7,a7 be enroll$ 9 a cov]$        
retirem5t program2 or  7,b7 notify !    
,secret>y t ! self-employ$ individual w 
p>ticipate 9 ,,f]s4  7b7 ,subsequ5t     
cov]age election  7#a7 ,options =       
employ]s ,at a frequ5cy det]m9$ by !    
,secret>y1 9 coord9ation ) ! ,director (
 ! ,(fice ( ,p]sonnel ,managem5t1 t is n
 less ?an annually1 an employ] t has 9  

effect a cov]$ retirem5t program = !    
employees ( ! employ] or ) respect to   
:om ! employees ( ! employ] are         
p>ticipat+ 9 ,,f]s may elect to-- 7,a7 9
 ! case ( an employ] t has 9 effect a   
cov]$ retirem5t program-- 7i7 cease mak+
 contributions to ! cov]$ retirem5t     
program = su* employees2 &  7ii7 h ea*  
employee employ$ by ! employ] p>ticipate
 9 ,,f]s2 or  7,b7 9 ! case ( an employ]
 ) respect to :om ! employees ( !       
employ] are p>ticipat+ 9 ,,f]s-- 7i7 h !
 employees cease p>ticipat+ 9 ,,f]s2 &  
7ii7 make available to ea* employee     
employ$ by ! employ] a cov]$ retirem5t  
program4  7#b7 ,options = self-employ$  
individuals ,at a frequ5cy det]m9$ by ! 
,secret>y1 9 coord9ation ) ! ,director (
 ! ,(fice ( ,p]sonnel ,managem5t1 t is n
 less ?an annually1 a self-employ$      
individual :o is enroll$ 9 a cov]$      
retirem5t program or is p>ticipat+ 9    
,,f]s may elect to-- 7,a7 9 ! case ( a  
self-employ$ individual :o is enroll$ 9 
a cov]$ retirem5t program-- 7i7 cease   

mak+ contributions to ! cov]$ retirem5t 
program2 &  7ii7 p>ticipate 9 ,,f]s2 or 
7,b7 9 ! case ( a self-employ$          
individual :o is p>ticipat+ 9 ,,f]s--   
7i7 cease p>ticipat+ 9 ,,f]s2 &  7ii7   
enroll 9 a cov]$ retirem5t program4  #d4
 ,p>ticipation ( non-,f$]al employees & 
self-employ$ individuals 9 ,,f]s  7a7   
,def9itions ,section #hdja ( title #e1  
,unit$ ,/ates ,code1 is am5d$-- 7#a7 by 
/rik+ p>agraph 7#b7 & ins]t+ ! foll[+3  
7#b7 ! t]m basic pay-- 7,a7 except z    
provid$ 9 subp>agraph 7,b71 has ! mean+ 
giv5 su* t]m by section #hcca7c72 &     
7,b7 ) respect to a cov]$ self-employ$  
individual1 means ! annual income ( !   
cov]$ self-employ$ individual t is      
attributable to ! activities ( !        
individual z a cov]$ self-employ$       
individual2  2  7#b7 9 p>agraph 7#aa7-- 
7,a7 9 subp>agraph 7,b71 by /rik+ & at !
 end2  7,b7 9 subp>agraph 7,c71 by add+ 
& at ! end2  7,c7 by ins]t+ aft]        
subp>agraph 7,c7 ! foll[+3  7,d7 an     
individual :o is-- 7i7 an cov]$         

non-,f$]al employee2 or  7ii7 a cov]$   
self-employ$ individual2  2 &  7,d7 9 ! 
matt] foll[+ subp>agraph 7,c71 by /rik+ 
civilian s]vice & ins]t+ s]vice 9 a     
position describ$ 9 subp>agraph 7,a71   
7,b71 7,c71 or 7,d72  7#c7 9 p>agraph   
7#ab71 by /rik+ civilian2  7#d7 9       
p>agraph 7#ca71 9 ! matt] foll[+        
subp>agraph 7,c71 by /rik+ civilian     
s]vice & ins]t+ s]vice z an employee or 
,memb]2  7#e7 9 p>agraph 7#ch77;,b71 by 
/rik+ & at ! end2  7#f7 9 p>agraph      
7#ci71 by /rik+ ! p]iod at ! end &      
ins]t+ a semicolon2 &  7#g7 by add+ at !
 end ! foll[+3  7#dj7 ! t]m cov]$       
non-,f$]al employ] means an employ] t is
 n a dep>tm5t1 ag5cy1 or o!r            
in/rum5tality ( ! ,f$]al ,gov]nm5t &    
does n h 9 effect = all employees ( !   
employ] a retirem5t plan t ! ,secret>y (
 ,labor has det]m9$ provides b5efits t  
are comp>able to ! b5efits provid$ "u ! 
retirem5t program "u ?is *apt]2  7#da7 !
 t]m cov]$ non-,f$]al employee means an 
individual employ$ by a cov]$ non-,f$]al

 employ]2 &  7#db7 ! t]m cov]$          
self-employ$ individual means a         
self-employ$ individual :o is n enroll$ 
9 a retirem5t plan o!r ?an ! ,f$]al     
,employees ,retirem5t ,sy/em t !        
,secret>y ( ,labor has det]m9$ provides 
b5efits t are comp>able to ! b5efits    
provid$ "u ! retirem5t program "u ?is   
*apt]4  4  7b7 ,eligibility = annuity   
,section #hdaj ( title #e1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ civilian      
s]vice & ins]t+ s]vice z an employee or 
a ,memb]4  7c7 ,cr$itable s]vice        
,section #hdaa7;b7 ( title #e1 ,unit$   
,/ates ,code1 is am5d$-- 7#a7 9 p>agraph
 7#a71 by ins]t+ subject to p>agraphs   
7#g7 & 7#h71 be=e employm5t2  7#b7 9    
p>agraph 7#e71 by /rik+ & at ! end2     
7#c7 9 p>agraph 7#f71 by /rik+ ! p]iod  
at ! end & ins]t+ a semicolon2 &  7#d7  
by ins]t+ aft] p>agraph 7#f7 ! foll[+3  
7#g7 a p]iod ( s]vice z a cov]$         
non-,f$]al employee p]=m$ aft] ! date ( 
enactm5t ( ?is p>agraph2 &  7#h7 a p]iod
 dur+ :i* an individual is a cov]$      

self-employ$ individual t occurs aft] ! 
date ( enactm5t ( ?is p>agraph4  2  7d7 
,phas$ retirem5t ,section               
#hdab;a7c77#e77;,a7 ( title #e1 ,unit$  
,/ates ,code1 is am5d$ by /rik+         
cr$itable civilian s]vice & ins]t+ o!r  
s]vice t is cr$itable "u ?is *apt]4  7e7
 ,employee contributions ,section #hdbb 
( title #e1 ,unit$ ,/ates ,code1 is     
am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9  
p>agraph 7#a71 by /rik+ ,! employ+ ag5cy
 & ins]t+ ,subject to p>agraph 7#d71 !  
employ+ ag5cy2  7,b7 9 p>agraph 7#c71 by
 /rik+ civilian ea* place x appe>s2 &   
7,c7 by add+ at ! end ! foll[+3  7#d7   
7,a7 ,a cov]$ non-,f$]al employ] %all   
d$uct & )hold f ! basic pay ( ea* cov]$ 
non-,f$]al employee ( ! cov]$ non-,f$]al
 employ] ! p]c5tage ( basic pay t w\ld  
be d$uct$ & )held f basic pay if ! cov]$
 non-,f$]al employee 7 an employee ( !  
,f$]al ,gov]nm5t1 z det]m9$ 9 accordance
 ) p>agraphs 7#b7 & 7#c74  7,b7 ,= a    
cov]$ self-employ$ individual1 an am\nt 
equal to ! p]c5tage ( basic pay ( !     

cov]$ self-employ$ individual t w\ld be 
d$uct$ & )held f basic pay if ! cov]$   
non-,f$]al employee 7 an employee ( !   
,f$]al ,gov]nm5t1 z det]m9$ 9 accordance
 ) p>agraphs 7#b7 & 7#c71 %all be deem$ 
to be d$uct$ & )held f ! basic pay ( !  
cov]$ self-employ$ individual = purposes
 ( subsection 7c71 & ! cov]$            
self-employ$ individual %all deposit su*
 am\nt 9 ! ,treasury ( ! ,unit$ ,/ates 9
 accordance ) su* subsection4  2 &  7#b7
 9 subsection 7e77#a77;,b71 by /rik+    
civilian ea* place x appe>s4  7f7       
,employ] contributions ,section         
#hdbc7;a7 ( title #e1 ,unit$ ,/ates     
,code1 is am5d$-- 7#a7 9 p>agraph 7#a71 
9 ! matt] prec$+ subp>agraph 7,a71 by   
ins]t+ 1 &1 subject to p>agraph 7#d71   
ea* cov]$ non-,f$]al employ] & ea* cov]$
 self-employ$ individual1 aft] section  
#hdbb7;a72  7#b7 by r$esignat+ p>agraph 
7#d7 z p>agraph 7#e72 &  7#c7 by ins]t+ 
aft] p>agraph 7#c7 ! foll[+3  7#d7 7,a7 
,9 ?is p>agraph-- 7i7 ! t]m additional  
employ] p]c5tage1 ) respect to a cov]$  

non-,f$]al employ]1 means #ej p]c5t ( ! 
p]c5tage obta9$ by divid+-- 7,i7 ! am\nt
 ( ! annual rev5ue ( ! cov]$ non-,f$]al 
employ] t is 9 excess ( #be1jjj1jjj2 by 
7,,ii7 #ge1jjj1jjj2 &  7ii7 ! t]m       
additional self-employ$ p]c5tage1 )     
respect to a cov]$ self-employ$         
individual1 means #ej p]c5t ( ! p]c5tage
 obta9$ by divid+-- 7,i7 ! am\nt ( !    
basic pay ( ! cov]$ self-employ$        
individual t is 9 excess ( #ge1jjj2 by  
7,,ii7 #ej1jjj4  7,b7 ,subject to       
subp>agraphs 7,d7 & 7,e71 ! am\nt       
contribut$ to ! ,fund "u p>agraph 7#a7  
by a cov]$ non-,f$]al employ] %all be   
r$uc$ z foll[s3 7i7 ,= a cov]$          
non-,f$]al employ] ) annual rev5ue ( n m
 ?an #be1jjj1jjj1 ! am\nt requir$ to be 
contribut$ %all be ! am\nt equal to #ej 
p]c5t ( ! o!rwise applicable am\nt4     
7ii7 ,= a cov]$ non-,f$]al employ] )    
annual rev5ue ( m ?an #be1jjj1jjj & n m 
?an #ajj1jjj1jjj1 ! am\nt requir$ to be 
contribut$ %all be ! sum (-- 7,i7 !     
am\nt equal to #ej p]c5t ( ! o!rwise    

applicable am\nt2 &  7,,ii7 ! am\nt     
equal to ! additional employ] p]c5tage (
 ! o!rwise applicable am\nt4  7,c7      
,subject to subp>agraph 7,e71 ! am\nt   
contribut$ to ! ,fund "u p>agraph 7#a7  
by a cov]$ self-employ$ individual %all 
be r$uc$ z foll[s3 7i7 ,= a cov]$       
self-employ$ individual ) basic pay ( n 
m ?an #ge1jjj1 ! am\nt requir$ to be    
contribut$ %all be ! am\nt equal to #ej 
p]c5t ( ! o!rwise applicable am\nt4     
7ii7 ,= a cov]$ self-employ$ individual 
) basic pay ( m ?an #ge1jjj & n m ?an   
#abe1jjj1 ! am\nt requir$ to be         
contribut$ %all be ! sum (-- 7,i7 !     
am\nt equal to #ej p]c5t ( ! o!rwise    
applicable am\nt2 &  7,,ii7 ! am\nt     
equal to ! additional self-employ$      
p]c5tage ( ! o!rwise applicable am\nt4  
7,d7 ,! am\nt ( ! r$uction "u           
subp>agraph 7,b7 ) respect to a cov]$   
non-,f$]al employ] %all be r$uc$ or     
elim9at$ bas$ on ! proportion ( highly  
comp5sat$ employees ( ! cov]$ non-,f$]al
 employ]1 9 accordance ) regulations    

promulgat$ by ! ,secret>y ( ,labor4     
7,e7 7i7 ,a cov]$ non-,f$]al employ] may
 elect to h bo? ! r$uction "u           
subp>agraph 7,b7 ( ?is p>agraph & !     
r$uction "u section #hdcb7;c77#b77;,b7 n
 apply = any ye>4  7ii7 ,a cov]$        
self-employ$ individual may elect to h !
 r$uction "u subp>agraph 7,c7 ( ?is     
p>agraph & ! r$uction "u section        
#hdcb7;c77#b77;,c7 n apply = any ye>4  4
  7g7 ,?rift sav+s plan  7#a7 ,transf]s 
treat$ z a sep>ation ,section #hdca7;a7 
( title #e1 ,unit$ ,/ates ,code1 is     
am5d$ by ins]t+ or employm5t at a cov]$ 
non-,f$]al employ] aft] ,gov]nm5t       
employm5t4  7#b7 ,contributions ,section
 #hdcb ( title #e1 ,unit$ ,/ates ,code1 
is am5d$-- 7,a7 9 subsection 7a7-- 7i7 9
 p>agraph 7#a71 by /rik+ ,an employee or
 ,memb] & ins]t+ ,subject to p>agraph   
7#d71 an employee or ,memb]2 &  7ii7 by 
add+ at ! end ! foll[+3  7#d7 ,= a cov]$
 self-employ$ individual1 ! cov]$       
self-employ$ individual may contribute  
to ! ,?rift ,sav+s ,fund 9 su* mann]1 & 

at su* frequ5cy1 z ! ,secret>y ( ,labor 
%all e/abli%4  2  7,b7 9 subsection     
7c7-- 7i7 9 p>agraph 7#a7-- 7,i7 9      
subp>agraph 7,a71 by ins]t+ & ea* cov]$ 
non-,f$]al employ] aft] ! employ+ ag5cy2
  7,,ii7 9 subp>agraph 7,c77iii71 by    
/rik+ civilian2 &  7,,iii7 by add+ at ! 
end ! foll[+3  7,d7 7i7 ,a cov]$        
self-employ$ individual %all make       
contributions to ! ,?rift ,sav+s ,fund =
 ! b5efit ( ! self-employ$ individual 9 
! same am\nt z w\ld be contribut$ by a  
cov]$ non-,f$]al employ] if !           
self-employ$ individual 7 an employee ( 
! cov]$ non-,f$]al employ]4  7ii7 ,!    
,secret>y ( ,labor %all e/abli% ! mann] 
& frequ5cy ) :i* a cov]$ self-employ$   
individual %all make contributions to ! 
,?rift ,sav+s ,fund "u ?is subp>agraph4 
2  7ii7 9 p>agraph 7#b7-- 7,i7 9        
subp>agraph 7,a7-- 7aa7 by ins]t+ 1 &1  
subject to p>agraph 7#d71 ea* cov]$     
non-,f$]al employ] & cov]$ self-employ$ 
individual1 aft] ! employ+ ag5cy2 &     
7bb7 by /rik+ employ+ ag5cy's           

contribution & ins]t+ contribution ( !  
employ+ ag5cy1 cov]$ non-,f$]al employ]2
 &  7,,ii7 9 subp>agraph 7,b71 9 ! matt]
 prec$+ clause 7i71 by ins]t+ or1       
subject to p>agraph 7#d71 cov]$         
non-,f$]al employ]1 or cov]$            
self-employ$ individual aft] employ+    
ag5cy2 &  7iii7 by add+ at ! end !      
foll[+3  7#d7 7,a7 ,9 ?is p>agraph-- 7i7
 ! t]m additional employ] p]c5tage1 )   
respect to a cov]$ non-,f$]al employ]1  
means #ej p]c5t ( ! p]c5tage obta9$ by  
divid+-- 7,i7 ! am\nt ( ! annual rev5ue 
( ! cov]$ non-,f$]al employ] t is 9     
excess ( #be1jjj1jjj2 by  7,,ii7        
#ge1jjj1jjj2 &  7ii7 ! t]m additional   
self-employ$ p]c5tage1 ) respect to a   
cov]$ self-employ$ individual1 means #ej
 p]c5t ( ! p]c5tage obta9$ by divid+--  
7,i7 ! am\nt ( ! basic pay ( ! cov]$    
self-employ$ individual t is 9 excess ( 
#ge1jjj2 by  7,,ii7 #ej1jjj4  7,b7      
,subject to subp>agraphs 7,d7 & 7,e71 ! 
am\nt contribut$ to ! ,?rift ,sav+s     
,fund "u p>agraphs 7#a7 & 7#b7 by a     

cov]$ non-,f$]al employ] %all be r$uc$ z
 foll[s3 7i7 ,= a cov]$ non-,f$]al      
employ] ) annual rev5ue ( n m ?an       
#be1jjj1jjj1 ! am\nt requir$ to be      
contribut$ %all be ! am\nt equal to #ej 
p]c5t ( ! o!rwise applicable am\nt4     
7ii7 ,= a cov]$ non-,f$]al employ] )    
annual rev5ue ( m ?an #be1jjj1jjj & n m 
?an #ajj1jjj1jjj1 ! am\nt requir$ to be 
contribut$ %all be ! sum (-- 7,i7 !     
am\nt equal to #ej p]c5t ( ! o!rwise    
applicable am\nt2 &  7,,ii7 ! am\nt     
equal to ! additional employ] p]c5tage (
 ! o!rwise applicable am\nt4  7,c7      
,subject to subp>agraph 7,e71 ! am\nt   
contribut$ to ! ,?rift ,sav+s ,fund "u  
p>agraphs 7#a7 & 7#b7 by a cov]$        
self-employ$ individual %all be r$uc$ z 
foll[s3 7i7 ,= a cov]$ self-employ$     
individual ) basic pay ( n m ?an        
#ge1jjj1 ! am\nt requir$ to be          
contribut$ %all be ! am\nt equal to #ej 
p]c5t ( ! o!rwise applicable am\nt4     
7ii7 ,= a cov]$ self-employ$ individual 
) basic pay ( m ?an #ge1jjj & n m ?an   

#abe1jjj1 ! am\nt requir$ to be         
contribut$ %all be ! sum (-- 7,i7 !     
am\nt equal to #ej p]c5t ( ! o!rwise    
applicable am\nt2 &  7,,ii7 ! am\nt     
equal to ! additional self-employ$      
p]c5tage ( ! o!rwise applicable am\nt4  
7,d7 ,! am\nt ( ! r$uction "u           
subp>agraph 7,b7 ) respect to a cov]$   
non-,f$]al employ] %all be r$uc$ or     
elim9at$ bas$ on ! proportion ( highly  
comp5sat$ employees ( ! cov]$ non-,f$]al
 employ]1 9 accordance ) regulations    
promulgat$ by ! ,secret>y ( ,labor4     
7,e7 7i7 ,a cov]$ non-,f$]al employ] may
 elect to h bo? ! r$uction "u           
subp>agraph 7,b7 ( ?is p>agraph & !     
r$uction "u section #hdbc7;a77#d77;,b7 n
 apply = any ye>4  7ii7 ,a cov]$        
self-employ$ individual may elect to h !
 r$uction "u subp>agraph 7,c7 ( ?is     
subp>agraph & ! r$uction "u section     
#hdbc7;a77#d77;,c7 n apply = any ye>4  4
  7#e7 7,a7 ,! ,secret>y ( ,labor %all1 
at ! frequ5cy det]m9$ appropriate by !  
,secret>y1 compute ! am\nt ( ! r$uction 

9 contributions by-- 7i7 a cov]$        
non-,f$]al employ] "u p>agraph 7#d7 )   
respect to ea* cov]$ non-,f$]al employee
 ( ! cov]$ non-,f$]al employ]2 &  7ii7 a
 cov]$ self-employ$ individual "u       
p>agraph 7#d7 ) respect to ! cov]$      
self-employ$ individual4  7,b7 ,!       
,secret>y ( ! ,treasury %all1 9 su*     
in/allm5ts z ! ,secret>y det]m9es       
appropriate1 cr$it to ! ,?rift ,sav+s   
,fund-- 7i7 = ! b5efit ( ea* cov]$      
non-,f$]al employee = :om !             
contributions by ! cov]$ non-,f$]al     
employ] employ+ ! cov]$ non-,f$]al      
employee are r$uc$ "u p>agraph 7#d7 an  
am\nt equal to ! am\nt ( ! r$uction2 &  
7ii7 = ! b5efit ( ea* cov]$ self-employ$
 individual = :om ! contributions by !  
cov]$ self-employ$ individual are r$uc$ 
"u p>agraph 7#d7 an am\nt equal to !    
am\nt ( ! r$uction4  2  7,c7 9          
subsection 7e7-- 7i7 by ins]t+ 7#a7 be=e
 ,! sums requir$2 &  7ii7 by add+ at !  
end ! foll[+3  7#b7 ,! sums requir$ to  
be contribut$ to ! ,?rift ,sav+s ,fund  

by a cov]$ non-,f$]al employ] or cov]$  
self-employ$ individual "u subsection   
7c7 = ! b5efit ( a cov]$ non-,f$]al     
employee or cov]$ self-employ$          
individual1 respectively1 %all be paid  
by ! cov]$ non-,f$]al employ] or cov]$  
self-employ$ individual1 respectively1 9
 accordance ) su* proc$ures z !         
,secret>y ( ! ,treasury may1 9          
consultation ) ! ,executive ,director1  
prescribe 9 regulations4  2  7,d7 9     
subsection 7g7-- 7i7 by ins]t+ or       
employm5t at a cov]$ non-,f$]al employ] 
aft] ,gov]nm5t employm5t ea* place x    
appe>s2  7ii7 by /rik+ civilian s]vice  
ea* place x appe>s & ins]t+ cr$itable   
s]vice z an employee or ,memb]2 &  7iii7
 9 p>agraph 7#e71 by ins]t+ or by a     
cov]$ non-,f$]al employ] aft] !         
,gov]nm5t2 &  7,e7 9 subsection         
7i77#a77;,b71 by /rik+ civilian s]vice &
 ins]t+ s]vice z an employee4  7#c7     
,paym5t ( lo/ e>n+s ,section #hdcb;a (  
title #e1 ,unit$ ,/ates ,code1 is       
am5d$-- 7,a7 by ins]t+ or cov]$         

non-,f$]al employ] aft] employ+ ag5cy   
ea* place x appe>s1 except ! second     
place x appe>s 9 subsection 7c72  7,b7 9
 subsection 7a7-- 7i7 9 p>agraph 7#a71  
by ins]t+ or cov]$ non-,f$]al employ]   
aft] su* ag5cy2 &  7ii7 9 p>agraph      
7#b7-- 7,i7 9 ! matt] prec$+ subp>agraph
 7,a71 by /rik+ an employ+ ag5cy's      
failure & ins]t+ a failure by an employ+
 ag5cy or cov]$ non-,f$]al employ]2 &   
7,,ii7 9 subp>agraph 7,a71 by ins]t+ or 
cov]$ non-,f$]al employ] aft] ! ag5cy2  
7,c7 9 subsection 7b77#c71 by ins]t+ 1  
respectively1 be=e errors2 &  7,d7 9    
subsection 7c71 9 ! fir/ s5t5ce1 by     
ins]t+ or paid by ! cov]$ non-,f$]al    
employ] 9 accordance ) su* proc$ures z !
 ,secret>y ( ! ,treasury may1 9         
consultation ) ! ,executive ,director1  
prescribe 9 regulations aft] e/abli%m5t4
  7#d7 ,contributions ( p]sons :o p]=m  
milit>y s]vice ,section #hdcb;b ( title 
#e1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7
 by ins]t+ or cov]$ non-,f$]al employ]  
aft] employ+ ag5cy ea* place x appe>s2  

7,b7 9 subsection 7g77#a71 by ins]t+ or 
cov]$ non-,f$]al employ] aft] ! ag5cy2 &
  7,c7 9 subsection 7h77#a71 by /rik+   
civilian s]vice ea* place x appe>s &    
ins]t+ s]vice z an employee4  7#e7      
,contributions ( c]ta9 p]sons reemploy$ 
aft] s]vice ) int]national organizations
 ,section #hdcb;c ( title #e1 ,unit$    
,/ates ,code1 is am5d$-- 7,a7 9         
subsection 7c71 by ins]t+ or cov]$      
non-,f$]al employ] aft] ! ag5cy2 &  7,b7
 9 subsection 7e71 by /rik+ civilian4   
7#f7 ,b5efits & election ( b5efits      
,section #hdcc ( title #e1 ,unit$ ,/ates
 ,code1 is am5d$-- 7,a7 by /rik+        
,gov]nm5t employm5t ea* place x appe>s &
 ins]t+ s]vice t is cr$itable "u ?is    
*apt]2 &  7,b7 9 subsection 7c77#a71 by 
/rik+ ,gov]nm5t s]vice & ins]t+ s]vice t
 is cr$itable "u ?is *apt]4  7h7 ,rights
 ( a wid[ or wid[] ,section             
#hddb7;b77#a7 ( title #e1 ,unit$ ,/ates 
,code1 is am5d$1 9 ! matt] prec$+       
subp>agraph 7,a71 by /rik+ civilian     
s]vice & ins]t+ s]vice z an employee4   

7i7 ,rights ( a *ild ,section           
#hddc7;a77#a7 ( title #e1 ,unit$ ,/ates 
,code1 is am5d$1 9 ! matt] prec$+       
subp>agraph 7,a71 by /rik+ civilian     
s]vice & ins]t+ s]vice z an employee4   
7j7 ,disability retirem5t ,section      
#hdea7;a7 ( title #e1 ,unit$ ,/ates     
,code1 is am5d$-- 7#a7 by /rik+         
employee's ag5cy ea* place x appe>s &   
ins]t+ ag5cy or cov]$ non-,f$]al employ]
 employ+ ! employee2 &  7#b7 9 p>agraph 
7#a77;,a71 by /rik+ civilian s]vice &   
ins]t+ s]vice z an employee4  7k7       
,recov]y2 re/oration ( e>n+ capacity    
,section #hdee7;a77#a7 ( title #e1      
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
or a cov]$ non-,f$]al employ] or on     
becom+ a cov]$ self-employ$ individual  
aft] reemploym5t by ! ,gov]nm5t4  7l7   
,au?ority ( ! (fice ( p]sonnel managem5t
 ,section #hdfa7;h77#a7 ( title #e1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
1 cov]$ non-,f$]al employ]1 & cov]$     
self-employ$ individual aft] ,ea*       
,gov]nm5t ag5cy4  7m7 ,annuities & pay  

on reemploym5t ,section #hdfh ( title   
#e1 ,unit$ ,/ates ,code1 is am5d$ by    
add+ at ! end ! foll[+3  7k7 ,?is       
section %all n apply to an individual   
s]v+ 9 a position z a cov]$ non-,f$]al  
employee or :o is a cov]$ self-employ$  
individual4  4  #e4 ,cr$it = small      
employ] & self-employ$ p5sion           
contributions  7a7 ,9 g5]al ,subp>t ,c (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cf ! foll[+ new 
section3  #cf;,a4 ,cr$it = small employ]
 & self-employ$ p5sion contributions    
7a7 ,9 g5]al ,9 ! case ( an eligible    
taxpay]1 !re %all be all[$ z a cr$it    
aga9/ ! tax impos$ by subtitle ,a an    
am\nt equal to ! contribution assi/ance 
am\nt ) respect to su* taxpay] = !      
taxable ye>4  7b7 ,contribution         
assi/ance am\nt ,9 ! case ( an eligible 
taxpay]1 = purposes ( ?is section-- 7#a7
 ,9 g5]al ,! contribution assi/ance     
am\nt is an am\nt equal to ! applicable 
p]c5tage ( ! qualifi$ p5sion            

contributions paid by ! eligible taxpay]
 dur+ ! taxable ye>4  7#b7 ,applicable  
p]c5tage ,= purposes ( p>agraph 7#a71 ! 
applicable p]c5tage is #ej p]c5t1 r$uc$ 
7b n bel[ z]o7 by ! numb] ( p]c5tage    
po9ts :i*-- 7,a7 9 ! case ( an employ]1 
be>s ! same ratio to #ej z ! excess (-- 
7i7 ! gross receipts ( ! employ] = !    
taxable ye>1 ov]  7ii7 #be1jjj1jjj1 be>s
 to  #ge1jjj1jjj1 &  7,b7 9 ! case ( a  
self-employ$ individual1 be>s ! same    
ratio to #ej z ! excess (-- 7i7 ! income
 ( ! individual = ! taxable ye>1 ov]    
7ii7 #ge1jjj1 be>s to  #ej1jjj4  7#c7   
,qualifi$ p5sion contributions ,! t]m   
qualifi$ p5sion contributions means--   
7,a7 9 ! case ( a cov]$ non-,f$]al      
employ] or cov]$ self-employ$           
individual1 ! contributions made by su* 
employ] or individual "u sections       
#hdbc7;a7 & #hdcb7;c7 ( title #e1 ,unit$
 ,/ates ,code1  7,b7 9 ! case ( any o!r 
employ]1 ! nonelective contributions    
made by su* employ] to a cov]$ retirem5t
 program 7z def9$ 9 section #b ( !      

,p5sions = ,all ,act7 on behalf ( !     
employees ( ! employ]1 &  7,c7 9 ! case 
( any o!r self-employ$ individual1 !    
contributions made by su* individual to 
a cov]$ retirem5t program 7z s def9$7 ( 
! individual4  7c7 ,eligible taxpay]s1  
etc ,= purposes ( ?is section-- 7#a7 ,9 
g5]al ,! t]m eligible taxpay] means--   
7,a7 any cov]$ non-,f$]al employ] mak+  
an election "u bo? sections             
#hdbc7;a77#d77;,e77i7 &                 
#hdcb7;c77#d77;,e77i7 ( title #e1 ,unit$
 ,/ates ,code n to receive a r$uction 9 
employ] contributions1  7,b7 any employ]
 :i* is n a cov]$ non-,f$]al employ]1   
7,c7 any cov]$ self-employ$ individual  
mak+ an election "u bo? sections        
#hdbc7;a77#d77;,e77ii7 &                
#hdcb7;c77#d77;,e77ii7 ( title #e1      
,unit$ ,/ates ,code n to receive a      
r$uction 9 contributions1 &  7,d7 any   
self-employ$ individual :o is n a cov]$ 
self-employ$ individual4  7#b7 ,cov]$   
non-,f$]al employ]2 cov]$ self-employ$  
individual ,! t]ms cov]$ non-,f$]al     

employ] & cov]$ self-employ$ individual 
h ! respective mean+s giv5 su* t]ms by  
section #hdja ( title #e1 ,unit$ ,/ates 
,code4  7d7 ,coord9ation ) o!r cr$its   
7#a7 ,bus9ess cr$it treat$ z "p ( g5]al 
bus9ess cr$it ,9 ! case ( an employ]1 ! 
cr$it :i* 7b = ?is p>agraph7 w\ld       
o!rwise be all[$ "u subsection 7a7 = any
 taxable ye> %all be treat$ z a cr$it   
li/$ 9 section #ch7;b7 = su* taxable ye>
 7& n all[$ "u subsection 7a774  7#b7   
,d5ial ( d\ble b5efit ,no d$uction or   
cr$it %all be all[$ "u any o!r section (
 ?is title ) respect to contributions to
 a plan 7includ+ ! ,f$]al ,employees    
,retirem5t ,sy/em "u *apt] #hd ( title  
#e1 ,unit$ ,/ates ,code7 if cr$it is    
all[able ) respect to su* contributions 
"u subsection 7a7 7det]m9$ )\t reg>d to 
?is subsection74  4  7b7 ,employ] cr$it 
,to be "p ( g5]al bus9ess cr$it         
,subsection 7b7 ( section #ch ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ plus at ! end ( p>agraph 7#dj71
 by /rik+ ! p]iod at ! end ( p>agraph   

7#da7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#db7 9 !   
case ( an eligible taxpay] 7z def9$ 9   
section #cf;,a7c771 ! portion ( ! cr$it 
= small employ] & self-employ$ p5sion   
contributions to :i* section            
#cf;,a7d77#a7 applies4  4  7c7 ,con=m+  
am5dm5t ,section #fbaa7;b77#d77;,a7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 1 #cf;,a aft] #cf4  7d7       
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,c ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #cf ! foll[+ new item3
  ,sec4 #cf;,a4 ,cr$it = small employ] &
 self-employ$ p5sion contributions4  4  
7e7 ,effective date ,! am5dm5ts made by 
?is section %all apply to contributions 
made aft] ! date ( ! enactm5t ( ?is     
,act4  #f4 ,failure to provide cov]$    
retirem5t program  7a7 ,9 g5]al ,*apt]  
#dc ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+ new  
section3  #dihj;,j4 ,failure to ma9ta9  

requir$ retirem5t program  7a7 ,g5]al   
rule  7#a7 ,employ]s ,!re is h]eby      
impos$ a tax on ! failure ( an employ]  
ei!r-- 7,a7 to make available a cov]$   
retirem5t program to all employees ( !  
employ]1 or  7,b7 9 ! case ( a cov]$    
employ]1 to make requir$ contributions  
"u sections #hdbc7;a7 & #hdcb7;c7 (     
title #e1 ,unit$ ,/ates ,code ) respect 
to ! employees ( ! employ]4  7#b7       
,self-employ$ individuals ,!re is h]eby 
impos$ a tax on ! failure ( a           
self-employ$ individual ei!r-- 7,a7 to  
p>ticipate 9 a cov]$ retirem5t program1 
or  7,b7 9 ! case ( a cov]$ self-employ$
 individual1 to make requir$            
contributions "u sections #hdbc7;a7 &   
#hdcb7;c7 ( title #e1 ,unit$ ,/ates     
,code ) respect to ! individual4  7b7   
,am\nt ( tax  7#a7 ,9 g5]al ,! am\nt ( !
 tax impos$ by subsection 7a7 on any    
failure ) respect to an employee or     
self-employ$ individual %all be #aj =   
ea* day 9 ! noncompliance p]iod )       
respect to su* failure4  7#b7           

,noncompliance p]iod ,= purposes ( ?is  
section1 ! t]m noncompliance p]iod      
means1 ) respect to any failure1 !      
p]iod-- 7,a7 beg9n+ on ! date su*       
failure fir/ occurs1 &  7,b7 end+ on !  
e>li] (-- 7i7 ! date su* failure is     
correct$1 or  7ii7 ) respect to any     
employ]1 ! date t is #c mon?s aft] ! la/
 date on :i* ! employee is employ$ by ! 
employ]4  7#c7 ,adju/m5t = inflation    
7,a7 ,9 g5]al ,9 ! case ( any failure   
occurr+ 9 a cal5d> ye> beg9n+ aft]      
#bjbf1 ! #aj am\nt "u p>agraph 7#a7 %all
 be increas$ by an am\nt equal to su*   
doll> am\nt multipli$ by ! co/-(-liv+   
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> det]m9$ by sub/itut+      
cal5d> ye> #bjbe = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  7,b7 ,r\nd+ 
,if any am\nt adju/$ "u subp>agraph 7,a7
 is n a :ole doll> am\nt1 su* am\nt %all
 be r\nd$ to ! ne>e/ :ole doll> am\nt4  
7c7 ,limitations on am\nt ( tax  7#a7   
,tax n to apply :]e failure n discov]$  
ex]cis+ reasonable dilig5ce ,no tax %all

 be impos$ by subsection 7a7 on any     
failure dur+ any p]iod = :i* x is       
e/abli%$ to ! satisfaction ( ! ,secret>y
 t none ( ! p]sons ref]r$ to 9          
subsection 7d7 knew1 nor ex]cis+        
reasonable dilig5ce w\ld h kn[n1 t su*  
failure exi/$4  7#b7 ,ov]all limitation 
= un9t5tional failures ,9 ! case (      
failures :i* are due to reasonable cause
 & n to willful neglect-- 7,a7 ,g5]al   
rule ,! tax impos$ by subsection 7a7 =  
failures dur+ ! taxable ye> ( ! employ] 
or self-employ$ individual %all n exce$ 
#ejj1jjj4  7,b7 ,taxable ye>s 9 ! case (
 c]ta9 controll$ gr\ps ,= purposes ( ?is
 subp>agraph1 if n all p]sons :o are    
treat$ z a s+le employ] = purposes ( ?is
 section h ! same taxable ye>1 ! taxable
 ye>s tak5 into acc\nt %all be det]m9$  
"u pr9ciples simil> to ! pr9ciples (    
section #aefa4  7#c7 ,waiv] by ,secret>y
 ,9 ! case ( a failure :i* is due to    
reasonable cause & n to willful neglect1
 ! ,secret>y may waive "p or all ( ! tax
 impos$ by subsection 7a7 to ! ext5t t !

 paym5t ( su* tax w\ld be excessive     
relative to ! failure involv$4  7d7     
,employ] liability = tax ,! employ] %all
 be liable = ! tax impos$ by subsection 
7a77#a7 on a failure4 ,all employ]s1    
det]m9$ )\t reg>d to subsection 7e77#b71
 %all be jo9tly & sev]ally liable = !   
liability ( any o!r employ] ) :i* !y are
 aggregat$ "u subsection 7e77#b74  7e7  
,def9itions ,= purposes ( ?is section-- 
7#a7 ,t]ms relat+ to cov]$ retirem5t    
programs1 etc ,any t]m us$ 9 ?is section
 :i* is def9$ 9 section #b ( ! ,p5sions 
= ,all ,act has ! mean+ giv5 su* t]m by 
su* section4  7#b7 ,employ] ,all        
employ]s treat$ z a s+le employ] "u     
subsection 7b71 7c71 7m71 or 7o7 (      
section #dad %all be treat$ z #a        
employ]4  4  7b7 ,cl]ical am5dm5t ,!    
table ( sections = *apt] #dc ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #dihj;,j4 ,failure to ma9ta9      
requir$ retirem5t program4  4  7c7      
,effective date ,! am5dm5ts made by ?is 

section %all apply to plan ye>s beg9n+  
aft] ,decemb] #ca1 #bjbe4  #g4          
,prohibition on ! r$uction ( comp5sation
 ,an employ] t employs an employee on or
 be=e ! date ( enactm5t ( ?is ,act may n
 r$uce any =m ( comp5sation provid$ to !
 employee due to ! requirem5t impos$ by 
?is ,act t ! employee be enroll$ 9 a    
cov]$ retirem5t program or ,,f]s4