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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2117 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2117

   To simplify and enhance qualified retirement plans, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2013

   Mr. Neal introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Education and the Workforce, Armed Services, Oversight and Government 
   Reform, and Transportation and Infrastructure, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
   To simplify and enhance qualified retirement plans, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement Plan 
Simplification and Enhancement Act of 2013''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.
     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

Sec. 101. Modification of automatic enrollment safe harbor.
Sec. 102. Secure deferral arrangements.
Sec. 103. Qualified cash or deferred arrangements must allow long-term 
                            employees working more than 500 but less 
                            than 1,000 hours per year to participate.
Sec. 104. Separate application of top heavy rules to defined 
                            contribution plans covering part-time 
                            employees.
Sec. 105. Modification of saver's credit.
Sec. 106. Retirement handbook and retirement readiness checklist.
Sec. 107. Additional time to adopt a qualified plan.
   TITLE II--ENCOURAGING SMALL BUSINESSES TO ENTER AND REMAIN IN THE 
                    EMPLOYER RETIREMENT PLAN SYSTEM

Sec. 201. Increase in credit limitation for small employer pension plan 
                            startup costs.
Sec. 202. Eliminating barriers to use of multiple employer plans.
                   TITLE III--PRESERVATION OF INCOME

Sec. 301. Study of application of spousal consent rules to defined 
                            contribution plans.
Sec. 302. Administration of joint and survivor annuity requirements.
Sec. 303. Availability of distribution options.
Sec. 304. Rollover of insurance contracts to IRAs.
Sec. 305. Portability of lifetime income options.
Sec. 306. Lost Pension Plan Registry.
TITLE IV--SIMPLIFICATION AND CLARIFICATION OF QUALIFIED RETIREMENT PLAN 
                                 RULES

Sec. 401. Exception from required distributions where aggregate 
                            retirement savings do not exceed $100,000.
Sec. 402. Expansion of Employee Plans Compliance Resolution System.
Sec. 403. Use of forfeitures to fund safe harbor contributions.
Sec. 404. Substantial cessation of operations.
Sec. 405. Church plan clarification.
Sec. 406. Protecting older, longer service participants.
Sec. 407. Review and report to the Congress relating to reporting and 
                            disclosure requirements.
Sec. 408. Consolidation of defined contribution plan notices.
Sec. 409. Performance benchmarks for asset allocation funds.
Sec. 410. Permit nonspousal beneficiaries to roll assets to plans.
Sec. 411. Eliminate the ``first day of the month'' requirement.
             TITLE V--PROVISIONS ENSURING EQUITY IN DIVORCE

Sec. 501. Special rules relating to treatment of qualified domestic 
                            relations orders.
Sec. 502. Elimination of current connection requirement under Railroad 
                            Retirement Act for certain survivors.
Sec. 503. Permitting divorced spouses and widows and widowers to 
                            remarry after turning 60 without a penalty 
                            under Railroad Retirement Act.
Sec. 504. Repeal of jurisdictional requirement for court to treat 
                            military retirement pay as property of the 
                            military member and spouse.
Sec. 505. Modification of reductions in disposable retired pay for 
                            payments in compliance with court orders.
Sec. 506. Survivor annuities for widows, widowers, and former spouses 
                            of federal employees who die before 
                            attaining age for deferred annuity under 
                            civil service retirement system.
Sec. 507. Court orders relating to Federal retirement benefits for 
                            former spouses of federal employees.
       TITLE VI--OFFICE OF PARTICIPANT AND PLAN SPONSOR ADVOCATE

Sec. 601. Office of Participant and Plan Sponsor Advocate.

     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

SEC. 101. MODIFICATION OF AUTOMATIC ENROLLMENT SAFE HARBOR.

    (a) In General.--
            (1) Removal of 10 percent cap.--Clause (iii) of section 
        401(k)(13)(C) is amended by striking ``, does not exceed 10 
        percent, and is at least'' and inserting ``and is''.
            (2) Conforming amendments.--
                    (A) Subclause (I) of section 401(k)(13)(C)(iii) is 
                amended by striking ``3 percent'' and inserting ``at 
                least 3 percent, but not greater than 10 percent,''.
                    (B) Subclause (II) of section 401(k)(13)(C)(iii) is 
                amended by striking ``4 percent'' and inserting ``at 
                least 4 percent''.
                    (C) Subclause (III) of section 401(k)(13)(C)(iii) 
                is amended by striking ``5 percent'' and inserting ``at 
                least 5 percent''.
                    (D) Subclause (IV) of section 401(k)(13)(C)(iii) is 
                amended by striking ``6 percent'' and inserting ``at 
                least 6 percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of enactment of this Act.

SEC. 102. SECURE DEFERRAL ARRANGEMENTS.

    (a) In General.--Subsection (k) of section 401 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(14) Alternative method for secure deferral arrangements 
        to meet nondiscrimination requirements.--
                    ``(A) In general.--A secure deferral arrangement 
                shall be treated as meeting the requirements of 
                paragraph (3)(A)(ii).
                    ``(B) Secure deferral arrangement.--For purposes of 
                this paragraph, the term `secure deferral arrangement' 
                means any cash or deferred arrangement which meets the 
                requirements of subparagraphs (C), (D), and (E) of 
                paragraph (13), except as modified by this paragraph.
                    ``(C) Qualified percentage.--For purposes of this 
                paragraph, with respect to any employee, the term 
                `qualified percentage' means, in lieu of the meaning 
                given such term in paragraph (13)(C)(iii), any 
                percentage determined under the arrangement if such 
                percentage is applied uniformly and is--
                            ``(i) at least 6 percent, but not greater 
                        than 10 percent, during the period ending on 
                        the last day of the first plan year which 
                        begins after the date on which the first 
                        elective contribution described in paragraph 
                        (13)(C)(i) is made with respect to such 
                        employee,
                            ``(ii) at least 8 percent during the first 
                        plan year following the plan year described in 
                        clause (i), and
                            ``(iii) at least 10 percent during any 
                        subsequent plan year.
                    ``(D) Matching contributions.--
                            ``(i) In general.--For purposes of this 
                        paragraph, an arrangement shall be treated as 
                        having met the requirements of paragraph 
                        (13)(D)(i) if and only if the employer makes 
                        matching contributions on behalf of each 
                        employee who is not a highly compensated 
                        employee in an amount equal to the sum of 50 
                        percent of the elective contributions of the 
                        employee to the extent that such contributions 
                        do not exceed 2 percent of compensation plus 30 
                        percent of so much of such contributions as 
                        exceed 2 percent but do not exceed 10 percent 
                        of compensation.
                            ``(ii) Application of rules for matching 
                        contributions.--The rules of clause (ii) of 
                        paragraph (12)(B) and clauses (iii) and (iv) of 
                        paragraph (13)(D) shall apply for purposes of 
                        clause (i) but the rule of clause (iii) of 
                        paragraph (12)(B) shall not apply for such 
                        purposes. The rate of matching contribution for 
                        each incremental deferral must be at least as 
                        high as the rate specified in clause (i), and 
                        may be higher, so long as such rate does not 
                        increase as an employee's rate of elective 
                        contributions increases.''.
    (b) Matching Contributions and Employee Contributions.--Subsection 
(m) of section 401 of such Code is amended by redesignating paragraph 
(13) as paragraph (14) and by adding after paragraph (12) the following 
new paragraph:
            ``(13) Alternative method for secure deferral 
        arraignments.--A defined contribution plan shall be treated as 
        meeting the requirements of paragraph (2) with respect to 
        matching contributions and employee contributions if the plan--
                    ``(A) is a secure deferral arrangement (as defined 
                in subsection (k)(14)),
                    ``(B) meets the requirements of clauses (ii) and 
                (iii) of paragraph (11)(B), and
                    ``(C) provides that matching contributions on 
                behalf of any employee may not be made with respect to 
                an employee's contributions or elective deferrals in 
                excess of 10 percent of the employee's compensation.''.
    (c) Tax Credit.--
            (1) In general.--Subpart (D) of part IV of subchapter A of 
        Chapter 1 of subtitle A of such Code is amended by adding at 
        the end thereof the following new section:

``SEC. 45S. SECURE DEFERRAL ARRANGEMENTS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer maintaining a qualified employer plan (as defined in 
clauses (i) and (ii) of section 4972(d)(1)(A)), the secure deferral 
arrangement credit determined under this section for any taxable year 
is an amount equal to 10 percent of all contributions under a secure 
deferral arrangement (as defined in section 401(k)(14)) made during the 
plan year ending with or within the taxable year of the eligible 
employer by or on behalf of employees other than highly compensated 
employees (as defined in section 414(q)).
    ``(b) Dollar Limitation.--The amount of the credit determined under 
this section for any taxable year shall not exceed--
            ``(1) $10,000 for the first credit year and each of the 2 
        taxable years immediately following the first credit year, and
            ``(2) zero for any other taxable year.
    ``(c) First Credit Year.--The term `first credit year' means--
            ``(1) the taxable year of the eligible employer with which 
        or within which ends the first plan year during which the 
        secure deferral arrangement was in effect for the entire year, 
        or
            ``(2) at the election of the eligible employer, the taxable 
        year preceding the taxable year referred to in paragraph (1).
    ``(d) Definition and Special Rules.--
            ``(1) Eligible employer.--The term `eligible employer' has 
        the meaning given such term by section 408(p)(2)(C)(i).
            ``(2) Aggregation.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person. All qualified employer plans of an eligible employer 
        shall be treated as 1 qualified employer plan.
            ``(3) Disallowance of deduction.--No deduction shall be 
        allowed for that portion of the contribution for the taxable 
        year which is equal to the credit determined under subsection 
        (a).
            ``(4) Election not to claim credit.--This section shall not 
        apply to a taxpayer for any taxable year if such taxpayer 
        elects to have this section not apply for such taxable year. 
        Any such taxable year shall not be taken into account under 
        subsection (b).''.
            (2) Conforming amendments.--
                    (A) General business credit.--Subsection (b) of 
                section 38 of such Code is amended by striking ``plus'' 
                at the end of paragraph (35), by striking the period at 
                the end of paragraph (36) and inserting ``, plus'', and 
                by adding at the end the following:
            ``(37) the secure deferral arrangement credit determined 
        under section 45S.''.
                    (B) Credit cross-references.--
                            (i) Subsection (k) of section 401 of such 
                        Code, as amended by subsection (a), is amended 
                        at the end thereof to add the following new 
                        paragraph:
            ``(15) Secure deferral arrangement credit.--For a general 
        business credit with respect to secure deferral arrangements, 
        see section 45S.''.
                            (ii) Subsection (m) of section 401 of such 
                        Code, as amended by subsection (b), is amended 
                        by adding at the end the following new 
                        paragraph:
            ``(15) Secure deferral arrangement credit.--For a general 
        business credit with respect to secure deferral arrangements, 
        see section 45S.''.
    (d) Facilitating Qualified Automatic Contribution Arrangements and 
Secure Deferral Arraignments.--By no later than the date that is twelve 
months after the date of enactment of this Act, the Secretary of the 
Treasury shall prescribe rules that facilitate the administration of 
qualified automatic contribution arrangements (as defined in section 
401(k)(13) of the Internal Revenue Code of 1986) and secure deferral 
arrangements (as defined in section 401(k)(14) of such Code). Such 
rules shall--
            (1) Clarify, simplify, and provide safe harbors with 
        respect to the application of the notice requirements described 
        in section 401(k)(13)(E) of such Code, especially in cases 
        where--
                    (A) employees become eligible under such 
                arrangements upon becoming employed or shortly 
                thereafter, or
                    (B) the employer has employees subject to different 
                payroll and administrative systems.
            (2) Clarify, simplify and provide safe harbors with respect 
        to the timing of the increases in the qualified percentage 
        described in subclauses (II), (III), and (IV) of section 
        401(k)(13)(C)(iii) of such Code and in clauses (ii) and (iii) 
        of section 401(k)(14)(C) of such Code, especially in cases 
        where the employer has employees subject to different payroll 
        and administrative systems.
    (e) Effective Date.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to plan years beginning after December 31, 
        2013.
            (2) Tax credit.--The amendments made by subsection (c) 
        shall apply to taxable years beginning after December 31, 2013.

SEC. 103. QUALIFIED CASH OR DEFERRED ARRANGEMENTS MUST ALLOW LONG-TERM 
              EMPLOYEES WORKING MORE THAN 500 BUT LESS THAN 1,000 HOURS 
              PER YEAR TO PARTICIPATE.

    (a) Participation Requirement.--
            (1) In general.--Subparagraph (D) of section 401(k)(2) 
        (defining qualified cash or deferred arrangement) is amended to 
        read as follows:
                    ``(D) which does not require, as a condition of 
                participation in the arrangement, that an employee 
                complete a period of service with the employer (or 
                employers) maintaining the plan extending beyond the 
                close of the earlier of--
                            ``(i) the period permitted under section 
                        410(a)(1) (determined without regard to 
                        subparagraph (B)(i) thereof), or
                            ``(ii) subject to the provisions of 
                        paragraph (14), the first period of 3 
                        consecutive 12-month periods during each of 
                        which the employee has at least 500 hours of 
                        service.''.
            (2) Special rules.--Section 401(k) (relating to cash or 
        deferred arrangements) (as amended by section 102) is amended 
        by adding at the end the following new paragraph:
            ``(16) Special rules for participation requirement for 
        long-term, part-time workers.--For purposes of paragraph 
        (2)(D)(ii)--
                    ``(A) Age requirement must be met.--Paragraph 
                (2)(D)(ii) shall not apply to an employee unless the 
                employee has met the requirement of section 
                410(a)(1)(A)(i) by the close of the last of the 12-
                month periods described in such paragraph.
                    ``(B) Nondiscrimination and top-heavy rules not to 
                apply.--
                            ``(i) Nondiscrimination rules.--In the case 
                        of employees who are eligible to participate in 
                        the arrangement solely by reason of paragraph 
                        (2)(D)(ii)--
                                    ``(I) notwithstanding subsection 
                                (a)(4), an employer shall not be 
                                required to make nonelective or 
                                matching contributions on behalf of 
                                such employees even if such 
                                contributions are made on behalf of 
                                other employees eligible to participate 
                                in the arrangement, and
                                    ``(II) an employer may elect to 
                                exclude such employees from the 
                                application of subsection (a)(4), 
                                paragraph (3), subsection (m)(2), and 
                                section 410(b).
                            ``(ii) Top-heavy rules.--An employer may 
                        elect to exclude all employees who are eligible 
                        to participate in a plan maintained by the 
                        employer solely by reason of paragraph 
                        (2)(D)(ii) from the application of the vesting 
                        and benefit requirements under subsections (b) 
                        and (c) of section 416.
                            ``(iii) Vesting.--For purposes of 
                        determining whether an employee described in 
                        clause (i) has a nonforfeitable right to 
                        employer contributions (other than 
                        contributions described in paragraph (3)(D)(i)) 
                        under the arrangement, each 12-month period for 
                        which the employee has at least 500 hours of 
                        service shall be treated as a year of service.
                            ``(iv) Employees who become full-time 
                        employees.--This subparagraph shall cease to 
                        apply to any employee as of the first plan year 
                        beginning after the plan year in which the 
                        employee meets the requirements of section 
                        410(a)(1)(A)(ii) without regard to paragraph 
                        (2)(D)(ii).
                    ``(C) Exception for employees under collectively 
                bargained plans, etc.--Paragraph (2)(D)(ii) shall not 
                apply to employees described in section 410(b)(3).
                    ``(D) Special rules.--
                            ``(i) Time of participation.--The rules of 
                        section 410(a)(4) shall apply to an employee 
                        eligible to participate in an arrangement 
                        solely by reason of paragraph (2)(D)(ii).
                            ``(ii) 12-month periods.--12-month periods 
                        shall be determined in the same manner as under 
                        the last sentence of section 410(a)(3)(A).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2013, except that, for 
purposes of section 401(k)(2)(D)(ii) of the Internal Revenue Code of 
1986 (as added by such amendments), 12-month periods beginning before 
January 1, 2014, shall not be taken into account.

SEC. 104. SEPARATE APPLICATION OF TOP HEAVY RULES TO DEFINED 
              CONTRIBUTION PLANS COVERING PART-TIME EMPLOYEES.

    (a) In General.--Paragraph (2) of section 416(c) is amended by 
adding at the end the following:
                    ``(C) Separate application to employees not meeting 
                age and service requirements.--If employees not meeting 
                the age or service requirements of section 410(a)(1) 
                (without regard to subparagraph (B) thereof) are 
                covered under a plan of the employer which meets the 
                requirements of paragraphs (A) and (B) separately with 
                respect to such employees, such employees may be 
                excluded from consideration in determining whether any 
                plan of the employer meets the requirements of 
                subparagraphs (A) and (B).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 105. MODIFICATION OF SAVER'S CREDIT.

    (a) 50 Percent Credit for All Taxpayers: Expansion of Phaseout 
Ranges.--Subsection (b) of section 25B is amended to read as follows:
    ``(b) Applicable Percentage.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), the 
        applicable percentage is 50 percent.
            ``(2) Phaseout.--The percentage under paragraph (1) shall 
        be reduced (but not below zero) by the number of percentage 
        points which bears the same ratio to 50 percentage points as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's adjusted gross income 
                        for such taxable year, over
                            ``(ii) the applicable dollar amount, bears 
                        to
                    ``(B) the phaseout range.
        If any reduction determined under this paragraph is not a whole 
        percentage point, such reduction shall be rounded to the 
        nearest whole percentage point.
            ``(3) Applicable dollar amount; phaseout range.--
                    ``(A) Joint returns.--Except as provided in 
                subparagraph (B)--
                            ``(i) the applicable dollar amount is 
                        $65,000, and
                            ``(ii) the phaseout range is $20,000.
                    ``(B) Other returns.--In the case of--
                            ``(i) a head of a household (as defined in 
                        section 2(b)), the applicable dollar amount and 
                        the phaseout range shall be \3/4\ of the 
                        amounts applicable under subparagraph (A) (as 
                        adjusted under paragraph (4)), and
                            ``(ii) any taxpayer who is not filing a 
                        joint return and who is not a head of a 
                        household (as so defined), the applicable 
                        dollar amount and the phaseout range shall be 
                        \1/2\ of the amounts applicable under 
                        subparagraph (A) (as so adjusted).
            ``(4) Inflation adjustment of applicable dollar amount.--In 
        the case of any taxable year beginning in a calendar year after 
        2014, the dollar amount in paragraph (3)(A)(i) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2013' for `calendar year 1992' in 
                subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $500.''.
    (b) Credit Made Refundable; Matching Contributions.--
            (1) Credit made refundable.--The Internal Revenue Code of 
        1986 is amended by moving section 25B to subpart C of part IV 
        of subchapter A of chapter 1 of such Code (relating to 
        refundable credits), by inserting section 25B after section 
        36B, and by redesignating section 25B as section 36C.
            (2) Matching contributions.--Section 36C, as redesignated 
        by paragraph (1), is amended by adding at the end the 
        following:
    ``(g) Matching Contributions.--
            ``(1) In general.--The credit allowed to an eligible 
        individual under this section for any taxable year shall be 
        twice the credit which would (but for this subsection) be 
        allowed if--
                    ``(A) the individual consents to the application of 
                paragraph (2), and
                    ``(B) a designation by such individual is in effect 
                for such year under paragraph (3).
            ``(2) Credit paid into designated retirement account.--Any 
        credit under this section for any taxable year shall be paid by 
        the Secretary into the designated retirement account of the 
        individual for such year. The amount payable under the 
        preceding sentence shall be subject to the reductions under 
        section 6402 in the same manner as if such amount were an 
        overpayment. The amount so paid shall be treated as refunded to 
        such individual.
            ``(3) Designated retirement account.--For purposes of this 
        subsection, the term `designated retirement account' means any 
        account or plan--
                    ``(A) of a type to which qualified retirement 
                savings contributions may be made,
                    ``(B) which is for such individual's benefit, and
                    ``(C) which is designated by such individual (in 
                such form and manner as the Secretary may provide) on 
                the return of tax for the taxable year.
            ``(4) Treatment of matching contributions.--In the case of 
        an amount paid under paragraph (2) into a designated retirement 
        account--
                    ``(A) any dollar limitation otherwise applicable to 
                the amount of contributions or deferrals to such 
                account shall be increased by the amount so paid,
                    ``(B) the individual's basis in such account shall 
                not be increased by reason of the amount so paid, and
                    ``(C) such amount shall be treated as an employer 
                contribution for the plan year in which such amount is 
                paid for purposes of--
                            ``(i) section 401(k)(3), and
                            ``(ii) section 408(k)(6)(A)(iii).
            ``(5) Regulations.--The Secretary shall prescribe such 
        regulations or other guidance as may be necessary to address 
        situations under which the Secretary is not able to make a 
        payment to a designated retirement account of an individual, 
        including a plan of an employer for which the individual no 
        longer works and to an account that does not exist.''.
            (3) Conforming amendments.--
                    (A) Section 6211(b)(4)(A) is amended by inserting 
                ``36C,'' after ``36B,''.
                    (B) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 is amended by striking the 
                item relating to section 25B.
                    (C) The table of sections for subpart C of such 
                part is amended by adding at the end the following new 
                item:

``Sec. 36C. Elective deferrals and IRA contributions by certain 
                            individuals.''.
                    (D) Section 1324(b)(2) of title 31, United States 
                Code, is amended by inserting ``36C,'' after ``36B,''.
    (c) Maximum Contributions.--Subsection (a) of section 36C, as 
redesignated by subsection (b), is amended to read as follows:
    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an eligible individual, 
        there shall be allowed as a credit against the tax imposed by 
        this subtitle for the taxable year an amount equal to the 
        applicable percentage of so much of the qualified retirement 
        savings contributions of the eligible individual for the 
        taxable year as do not exceed the contribution limit.
            ``(2) Contribution limit.--For purposes of paragraph (1)--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the contribution limit is $500 ($1,500 
                for taxable years beginning after 2023).
                    ``(B) Annual increases to reach $1,500.--In the 
                case of taxable years beginning in a calendar year 
                after 2013 and before 2024, the contribution limit 
                shall be the sum of--
                            ``(i) the contribution limit for taxable 
                        years beginning in the preceding calendar year 
                        (as increased under this subparagraph), and
                            ``(ii) $100.
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2023, 
                the $1,500 amount in subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2022' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $50.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 106. RETIREMENT HANDBOOK AND RETIREMENT READINESS CHECKLIST.

    (a) In General.--Section 704 of the Social Security Act is amended 
by adding at the end the following new subsection:
    ``(f) Retirement Information.--
            ``(1) In general.--The Commissioner, in consultation with 
        the Social Security Advisory Board, shall prepare--
                    ``(A) the financial reference handbook described in 
                paragraph (2), and
                    ``(B) the retirement readiness checklist described 
                in paragraph (3).
            ``(2) Financial reference handbook.--The handbook described 
        in this paragraph is a pamphlet which--
                    ``(A) includes definitions of basic financial 
                terms,
                    ``(B) contains a listing of financial issues and 
                problems facing individuals who are retiring and 
                explanations of methods of dealing with the issues and 
                problems, and
                    ``(C) is in a form readily understandable by the 
                average retiree.
            ``(3) Readiness checklist.--The checklist described in this 
        paragraph is a list of questions that individuals need to 
        consider in preparation for retirement, including the 
        following:
                    ``(A) What annual income will the individual need 
                in retirement?
                    ``(B) How many years will the individual live in 
                retirement?
                    ``(C) What will be the cost of Medicare premiums?
                    ``(D) What will be the cost of insurance necessary 
                to supplement Medicare?
                    ``(E) How will savings be invested in retirement?
                    ``(F) How will taxes affect your retirement income?
        The checklist will include answers to the questions or 
        directions as to where information is available to answer the 
        questions. All information shall be in a form readily 
        understandable to the average recipient of the checklist.
            ``(4) Revisions.--The Commissioner shall periodically 
        revise and update the handbook and checklist prepared under 
        this subsection.
            ``(5) Distribution of materials.--
                    ``(A) Handbook.--The financial reference handbook 
                described in paragraph (2) shall be included with 
                materials provided to an individual when the individual 
                first applies for benefits under title II and such 
                other times as the Commissioner determines appropriate.
                    ``(B) Checklist.--The retirement readiness 
                checklist described in paragraph (3) shall be included 
                with an individual's annual social security account 
                statement provided under section 1143.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act, but the handbooks and 
checklists required to be provided by such amendment shall be provided 
on or after January 1, 2014 (or such earlier date as the Commissioner 
of Social Security may provide).

SEC. 107. ADDITIONAL TIME TO ADOPT A QUALIFIED PLAN.

    (a) In General.--Subsection (a) of section 401 is amended by 
inserting after paragraph (37) the following new paragraph:
            ``(38) The adoption of a plan by the applicable date shall 
        not cause a plan to fail to meet the requirements of this 
        section for a plan year. For purposes of the preceding 
        sentence, the term `applicable date' means the due date 
        (including extensions) for filing the Federal income tax return 
        for the employer's taxable year in which ends the plan year for 
        which the plan is effective. A plan adopted in accordance with 
        this paragraph will be treated as established by the end of the 
        employer's taxable year for purposes of applying section 
        404(a).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to years beginning after December 31, 2013.

   TITLE II--ENCOURAGING SMALL BUSINESSES TO ENTER AND REMAIN IN THE 
                    EMPLOYER RETIREMENT PLAN SYSTEM

SEC. 201. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) In General.--Paragraph (1) of section 45E(b) is amended to read 
as follows:
            ``(1) for the first credit year and each of the 2 taxable 
        years immediately following the first credit year, the greater 
        of--
                    ``(A) $500, or
                    ``(B) the lesser of--
                            ``(i) $250 for each employee of the 
                        eligible employer who is not a highly 
                        compensated employee (as defined in section 
                        415(q)) and who is eligible to participate in 
                        the eligible employer plan maintained by the 
                        eligible employer, or
                            ``(ii) $5,000, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 202. ELIMINATING BARRIERS TO USE OF MULTIPLE EMPLOYER PLANS.

    By December 31, 2013, the Secretaries of the Treasury and Labor 
shall--
            (1) prescribe administrative guidance establishing 
        conditions under which an employer participating in a plan 
        described in section 413(c) of the Internal Revenue Code of 
        1986 shall not have any liability under title I of the Employee 
        Retirement Income Security Act of 1974 with respect to the acts 
        or omissions of one or more other participating employers, 
        which regulations may require that the portion of the plan 
        attributable to such participating employers be spun off to 
        plans maintained by such employers,
            (2) prescribe administrative guidance establishing 
        conditions under which a plan described in section 413(c) of 
        such Code may be treated as satisfying the qualification 
        requirements of sections 401(a) and 413(c) of such Code despite 
        the violation of such requirements by one or more participating 
        employers, including requiring, if appropriate, that the 
        portion of the plan attributable to such participating 
        employers be spun off to plans maintained by such employers, 
        and
            (3) prescribe administrative guidance providing simplified 
        means by which plans described in section 413(c) of such Code 
        may satisfy the requirements of section 103 of the Employee 
        Retirement Income Security Act of 1974.

                   TITLE III--PRESERVATION OF INCOME

SEC. 301. STUDY OF APPLICATION OF SPOUSAL CONSENT RULES TO DEFINED 
              CONTRIBUTION PLANS.

    (a) Study.--The Government Accountability Office shall conduct a 
study of the feasibility and desirability of extending the application 
of the requirements of section 205 of the Employee Retirement Income 
Security Act of 1974 and sections 401(a)(11) and 417 of the Internal 
Revenue Code of 1986 (relating to spousal consent requirements) to 
defined contribution plans to which such requirements do not apply. 
Such study shall include consideration of any modifications of such 
requirements that are necessary to apply such requirements to such 
plans.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Government Accountability Office shall report the 
results of the study, together with any recommendations for legislative 
changes, to the Committees on Finance and Health, Education, Labor, and 
Pensions of the Senate and the Committees on Ways and Means and 
Education and the Workforce of the House of Representatives.

SEC. 302. ADMINISTRATION OF JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

    (a) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Section 402(c) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1102(c)) is amended--
                    (A) in paragraph (2) by striking ``or'' at the end,
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``; or'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) that a named fiduciary, or a fiduciary designated by 
        a named fiduciary pursuant to a plan procedure described in 
        section 405(e), may appoint an annuity administrator or 
        administrators with responsibility for administration of an 
        individual account plan in accordance with the requirements of 
        section 205 and payment of any annuity required thereunder.''.
            (2) Section 405 of such Act (29 U.S.C. 1105) is amended by 
        adding at the end the following new subsection:
    ``(e) Annuity Administrator.--If an annuity administrator or 
administrators have been appointed under section 402(c)(4) and such 
entity acknowledges in writing that they are the annuity administrator 
and a fiduciary under the plan with respect to their appointed duties, 
then neither the named fiduciary nor any appointing fiduciary shall be 
liable for any act or omission of the annuity administrator except to 
the extent that--
            ``(1) the named fiduciary or appointing fiduciary violated 
        section 404(a)(1)--
                    ``(A) with respect to such allocation or 
                designation, or
                    ``(B) in continuing the allocation or designation,
            ``(2) the named fiduciary or appointing fiduciary would 
        otherwise be liable in accordance with subsection (a), or
            ``(3) the entity appointed to be the annuity administrator 
        is neither an insurance company nor approved to be an annuity 
        administrator by the Secretary.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply as of the date of enactment of this Act.

SEC. 303. AVAILABILITY OF DISTRIBUTION OPTIONS.

    (a) Lifetime Income Investments.--By the date that is one year 
after the date of enactment of this Act, the Secretary of the Treasury 
shall issue final regulations under which it is clarified that any 
specified age or service condition (or combination of age and service 
conditions) with respect to a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii)) under a defined contribution plan shall be 
disregarded in determining whether such lifetime income investment is 
currently available to an employee for purposes of Treasury Regulation 
section 1.401(a)(4)-4(b) (or any successor provision).
    (b) Enforcement.--As of the date of enactment of this Act, the 
Secretary of the Treasury shall administer and enforce the law in 
accordance with subsection (a) with respect to plan years beginning 
before, on, or after the date of enactment of this Act.
    (c) Effective Date.--This section shall take effect as of the date 
of enactment of this Act.

SEC. 304. ROLLOVER OF INSURANCE CONTRACTS TO IRAS.

    (a) In General.--Section 408(a)(3) is amended by inserting ``other 
than insurance contracts that were rolled over to an IRA from a 
qualified retirement plan described in clause (iii), (iv), or (vi) of 
section 402(c)(8)(B) provided that such contracts provide only 
incidental death benefits taking into account both the IRA and the 
qualified retirement plan'' after ``contract''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to years beginning after December 31, 2013.

SEC. 305. PORTABILITY OF LIFETIME INCOME OPTIONS.

    (a) In General.--Subsection (a) of section 401 is amended by 
inserting after paragraph (37) the following new paragraph:
            ``(38) Portability of lifetime income.--
                    ``(A) In general.--A trust forming part of a 
                defined contribution plan shall not be treated as 
                failing to constitute a qualified trust under this 
                section solely by reason of allowing--
                            ``(i) qualified distributions of a lifetime 
                        income investment, or
                            ``(ii) distributions of a lifetime income 
                        investment in the form of a qualified plan 
                        distribution annuity contract,
                on or after the date that is 90 days prior to the date 
                on which such lifetime income investment is no longer 
                authorized to be held as an investment option under the 
                plan except as may otherwise be provided by 
                regulations.
                    ``(B) Definitions.--For purposes of this 
                subsection--
                            ``(i) the term `qualified distribution' 
                        means a direct trustee-to-trustee transfer to 
                        an eligible retirement plan (as defined in 
                        section 402(c)(8)(B)), as described in section 
                        401(a)(31)(A),
                            ``(ii) the term `lifetime income 
                        investment' means an investment option that is 
                        designed to provide an employee with election 
                        rights--
                                    ``(I) that are not uniformly 
                                available with respect to other 
                                investment options under the plan, and
                                    ``(II) that are to a lifetime 
                                income feature available through a 
                                contract or other arrangement offered 
                                under the plan or under another 
                                eligible retirement plan (as defined in 
                                section 402(c)(8)(B)) through a direct 
                                trustee-to-trustee transfer to such 
                                other eligible retirement plan under 
                                section 401(a)(31)(A),
                            ``(iii) the term `lifetime income feature' 
                        means--
                                    ``(I) a feature that guarantees a 
                                minimum level of income annually (or 
                                more frequently) for at least the 
                                remainder of the life of the employee 
                                or the joint lives of the employee and 
                                the employee's designated beneficiary, 
                                or
                                    ``(II) an annuity payable on behalf 
                                of the employee under which payments 
                                are made in substantially equal 
                                periodic payments (not less frequently 
                                than annually) over the life of the 
                                employee or the joint lives of the 
                                employee and the employee's designated 
                                beneficiary, taking into account the 
                                rules of clause (iii) of section 
                                401(a)(9)(I), and
                            ``(iv) the term `qualified plan 
                        distribution annuity contract' means an annuity 
                        contract purchased for a participant and 
                        distributed to the participant by a plan 
                        described in subparagraph (B) of section 
                        402(c)(8) (without regard to clauses (i) and 
                        (ii) thereof).''.
    (b) Cash or Deferred Arrangement.--Clause (i) of section 
401(k)(2)(B) is amended by striking ``or'' at the end of subclause 
(IV), by striking ``and'' at the end of subclause (V) and inserting 
``or'', and by adding at the end of clause (i) the following:
                                    ``(VI) with respect to amounts 
                                invested in a lifetime income 
                                investment (as defined in section 
                                401(a)(38)(B)(ii)), the date that is 90 
                                days prior to the date that such 
                                lifetime income investment may no 
                                longer be held as an investment option 
                                under the plan, provided that any 
                                distribution under this subclause must 
                                be in the form of a qualified 
                                distribution (as defined in section 
                                401(a)(38)(B)(i)) or a qualified plan 
                                distribution annuity contract (as 
                                defined in section 401(a)(38)(B)(iv)), 
                                and''.
    (c) Section 403(b) Plans.--
            (1) Annuity contracts.--Paragraph (11) of section 403(b) is 
        amended by striking ``or'' at the end of subparagraph (B), by 
        striking the period at the end of subparagraph (C), and by 
        inserting ``, or'', and by adding at the end the following:
                    ``(D) with respect to amounts invested in a 
                lifetime income investment (as defined in section 
                401(a)(38)(B)(ii)), the date that is 90 days prior to 
                the date that such lifetime income investment may no 
                longer be held as an investment option under the plan, 
                provided that any distribution under this subparagraph 
                must be in the form of a qualified distribution (as 
                defined in section 401(a)(38)(B)(i)) or a qualified 
                plan distribution annuity contract (as defined in 
                section 401(a)(38)(B)(iv)).''.
            (2) Custodial accounts.--Clause (ii) of section 
        403(b)(7)(A) is amended to read as follows:
                            ``(ii) under the custodial account, no such 
                        amounts may be paid or made available to any 
                        distributee (unless such amount is a 
                        distribution to which section 72(t)(2)(G) 
                        applies) before--
                                    ``(I) the employee dies,
                                    ``(II) the employee attains age 
                                59\1/2\,
                                    ``(III) the employee has a 
                                severance from employment,
                                    ``(IV) the employee becomes 
                                disabled (within the meaning of section 
                                72(m)(7)),
                                    ``(V) in the case of contributions 
                                made pursuant to a salary reduction 
                                agreement (within the meaning of 
                                section 3121(a)(5)(D)), the employee 
                                encounters financial hardship, or
                                    ``(VI) with respect to amounts 
                                invested in a lifetime income 
                                investment (as defined in section 
                                401(a)(38)(B)(ii)), the date that is 90 
                                days prior to the date that such 
                                lifetime income investment may no 
                                longer be held as an investment option 
                                under the plan, provided that any 
                                distribution under this subparagraph 
                                must be in the form of a qualified 
                                distribution (as defined in section 
                                401(a)(38)(B)(i)) or a qualified plan 
                                distribution annuity contract (as 
                                defined in section 
                                401(a)(38)(B)(iv)).''.
    (d) Eligible Deferred Compensation Plans.--Subparagraph (A) of 
section 457(d)(1) is amended by striking ``or'' at the end of clause 
(ii), by inserting ``or'' at the end of clause (iii), and by adding 
after clause (iii) the following:
                            ``(iv) with respect to amounts invested in 
                        a lifetime income investment (as defined in 
                        section 401(a)(38)(B)(ii)), the date that is 90 
                        days prior to the date that such lifetime 
                        income investment may no longer be held as an 
                        investment option under the plan, provided that 
                        any distribution under this subparagraph must 
                        be in the form of a qualified distribution (as 
                        defined in section 401(a)(38)(B)(i)) or a 
                        qualified plan distribution annuity contract 
                        (as defined in section 401(a)(38)(B)(iv)),''.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2013.

SEC. 306. LOST PENSION PLAN REGISTRY.

    (a) In General.--Subtitle C of title IV of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by 
adding at the end the following:

``SEC. 4051. LOST PENSION PLAN REGISTRY.

    ``No later than December 31, 2014, the corporation shall establish 
a database to be known as the Lost Pension Plan Registry. The 
corporation shall--
            ``(1) ensure that the database contains a record of the 
        information described in section 6057(b) of the Internal 
        Revenue Code of 1986 that is transmitted by the Secretary of 
        the Treasury to the corporation pursuant to section 6057(d) of 
        such Code, and
            ``(2) post such record on the corporation's website in a 
        manner calculated to inform participants and beneficiaries of 
        the name, location, and contact information for any plan that 
        has changed its identity or status.''.
    (b) Amendment to the Internal Revenue Code.--Section 6057(d) of the 
Internal Revenue Code of 1986 is amended by inserting ``and to the 
Pension Benefit Guaranty Corporation'' before the period at the end.

TITLE IV--SIMPLIFICATION AND CLARIFICATION OF QUALIFIED RETIREMENT PLAN 
                                 RULES

SEC. 401. EXCEPTION FROM REQUIRED DISTRIBUTIONS WHERE AGGREGATE 
              RETIREMENT SAVINGS DO NOT EXCEED $100,000.

    (a) In General.--Section 401(a)(9) (relating to required 
distributions) is amended by adding at the end the following new 
subparagraph:
                    ``(I) Exception from required minimum distributions 
                during life of employee or beneficiary where assets do 
                not exceed $100,000.--
                            ``(i) In general.--If, as of a measurement 
                        date, the aggregate balance to the credit of an 
                        employee under all applicable eligible 
                        retirement plans does not exceed $100,000, then 
                        the requirements of subparagraph (A) shall not 
                        apply to the employee during any succeeding 
                        calendar year. In addition, if, as of a 
                        measurement date, the aggregate balance to the 
                        credit of an employee under all applicable 
                        eligible retirement plans does not exceed 
                        $100,000, then the requirements of subparagraph 
                        (B) shall not apply during any succeeding 
                        calendar year to the employee's designated 
                        beneficiary with respect to the designated 
                        beneficiary's interest in the balance to the 
                        credit of the deceased employee.
                            ``(ii) Applicable eligible retirement 
                        plan.--For purposes of this subparagraph, the 
                        term `applicable eligible retirement plan' 
                        means an eligible retirement plan (as defined 
                        in section 402(c)(8)(B)) and any other plan, 
                        contract, or arrangement to which the 
                        requirements of this paragraph apply.
                            ``(iii) Special rule for benefits paid as a 
                        life annuity from defined benefit plan.--In 
                        determining the aggregate balance under clause 
                        (i), there shall not be taken into account the 
                        value of any benefits under a defined benefit 
                        plan that, on the measurement date, are being 
                        paid as a life annuity.
                            ``(iv) Measurement date.--
                                    ``(I) Initial measurement dates.--
                                The initial measurement date for an 
                                individual is the last day of the 
                                calendar year preceding the earlier 
                                of--
                                            ``(aa) the calendar year in 
                                        which the employee attains age 
                                        70\1/2\, or
                                            ``(bb) the calendar year in 
                                        which the employee dies.
                                    ``(II) Subsequent measurement 
                                dates.--If, in a calendar year, an 
                                individual who is exempted from the 
                                requirements of this paragraph pursuant 
                                to clause (i) receives contributions, 
                                rollovers, or transfers of amounts, or 
                                accrues additional benefits under a 
                                defined benefit plan, that were not 
                                previously taken into account in 
                                applying this subparagraph, then the 
                                last day of that calendar year shall be 
                                a new measurement date and a new 
                                determination shall be made as to 
                                whether clause (i) applies.
                            ``(v) Determining value of defined benefit 
                        plan benefits.--The value of defined benefit 
                        plan benefits is determined in accordance with 
                        the applicable interest rate and applicable 
                        mortality rate assumptions under section 
                        417(e), except that the value shall be equal to 
                        the amount of the single sum payment payable to 
                        the extent available under the plan.
                            ``(vi) Phase-in of minimum distribution 
                        requirements.--For an individual whose 
                        aggregate balance exceeds the exemption level 
                        in clause (i) by less than $10,000, required 
                        minimum distribution requirements will phase in 
                        based on the ratio of--
                                    ``(I) the amount by which the 
                                aggregate balance exceeds the exemption 
                                level, to
                                    ``(II) $10,000.
                            ``(vii) Cost of living adjustments.--The 
                        Secretary shall adjust annually the $100,000 
                        amount specified in clause (i) for increases in 
                        the cost-of-living at the same time and in the 
                        same manner as adjustments under section 
                        415(d); except that the base period shall be 
                        the calendar quarter beginning July 1, 2013, 
                        and any increase which is not a multiple of 
                        $5,000 shall be rounded to the next lowest 
                        multiple of $5,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to initial measurement dates occurring on or after December 31, 2013.

SEC. 402. EXPANSION OF EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Treasury shall modify the 
Employee Plans Compliance Resolution System (as described in Revenue 
Procedure 2013-12) to achieve the results specified in the succeeding 
subsections of this section and to further facilitate corrections and 
compliance in such other means as the Secretary deems appropriate.
    (b) Loan Error.--
            (1) In the case of plan loan errors for which corrections 
        are specified under the voluntary compliance program, self-
        correction shall be made available by methods applicable to 
        such loans through the voluntary compliance program.
            (2) The Secretary of Labor shall treat any loan error 
        corrected pursuant to paragraph (1) as meeting the requirements 
        of the Voluntary Fiduciary Correction Program of the Department 
        of Labor.
    (c) 457(b) Plan Correction.--The Secretary of the Treasury shall 
update the Employee Plans Compliance Resolution System to provide the 
same type of comprehensive correction program that is available under 
such system to retirement plans qualified under section 401(a) of the 
Internal Revenue Code of 1986 to plans maintained pursuant to section 
457(b) of such Code by an employer described in section 457(e)(1)(A) of 
such Code.
    (d) EPCRS for IRAs.--The Secretary of the Treasury shall expand the 
Employee Plans Compliance Resolution System to allow custodians of 
individual retirement plans to address inadvertent errors for which the 
owner of an individual retirement plan was not at fault, including (but 
not limited to)--
            (1) waivers of the excise tax that would otherwise apply 
        under section 4974 of the Internal Revenue Code of 1986,
            (2) under the self-correction component of the Employee 
        Plans Compliance Resolution System, waivers of the 60-day 
        deadline for a rollover where the deadline is missed for 
        reasons beyond the reasonable control of the account owner, and
            (3) rules permitting a nonspouse beneficiary to return 
        distributions to an inherited individual retirement plan 
        described in section 408(d)(3)(C) of the Internal Revenue Code 
        of 1986 in a case where, due to an inadvertent error by a 
        service provider, the beneficiary had reason to believe that 
        the distribution could be rolled over without inclusion in 
        income of any part of the distributed amount.
    (e) Required Minimum Distribution Corrections.--The Secretary of 
the Treasury shall expand the Employee Plans Compliance Resolution 
System to allow plans to which such system applies and custodians of 
individual retirement plans to self-correct, without an excise tax, any 
inadvertent errors pursuant to which a distribution is made no more 
than 180 days after it was required to be made.
    (f) Automatic Feature Error Correction.--In order to promote the 
adoption of automatic enrollment and automatic escalation, the 
Secretary of the Treasury shall modify the Employee Plans Compliance 
Resolution System to establish specific correction methods for errors 
in implementing automatic enrollment and automatic escalation features.

SEC. 403. USE OF FORFEITURES TO FUND SAFE HARBOR CONTRIBUTIONS.

    (a) In General.--Section 401(k) (as amended by this Act) is amended 
by adding at the end the following new paragraph:
            ``(17) A matching contribution or nonelective contribution 
        described in paragraph (3)(D)(ii), subparagraph (B) or (C) of 
        paragraph (12), or paragraph (13)(D) shall not fail to satisfy 
        the definition under such paragraph merely because the 
        contribution is funded in whole or in part by forfeitures.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to forfeitures allocated in accordance with section 401(k)(14) of 
the Internal Revenue Code of 1986 (as amended by subsection (a)) 
before, on or after the date of enactment of this Act.

SEC. 404. SUBSTANTIAL CESSATION OF OPERATIONS.

    (a) In General.--Subsection (e) of section 4062 of the Employee 
Retirement Income Security Act of 1974 is amended by striking ``If an 
employer'' and inserting ``(1) In general.--If an employer'', and by 
adding at the end thereof the following new paragraph:
            ``(2) Substantial cessation of operations.--An employer 
        shall not be treated as having a cessation described in 
        paragraph (1) unless--
                    ``(A) all operations at a facility in a location 
                are ceased and--
                            ``(i) such cessation is reasonably expected 
                        to be permanent,
                            ``(ii) no portion of such operations is 
                        moved to another facility at a different 
                        location,
                            ``(iii) no portion of such operations is 
                        assumed or otherwise transferred to another 
                        employer, and
                            ``(iv) no other operations are reasonably 
                        expected to be maintained at such facility, and
                    ``(B) as a result of the cessation described in 
                subparagraph (A), more than 20 percent of the employees 
                of the employer have a termination of employment that 
                is reasonably expected to be permanent. For purposes of 
                this subparagraph, employees of the employer shall 
                include all employees treated as employed by a single 
                employer under sections 210(c) and (d).''.
    (b) Direction to the Corporation.--The Pension Benefit Guaranty 
Corporation shall not take any enforcement, administrative, or other 
actions pursuant to section 4062(e) of such Act that are inconsistent 
with subparagraph (A) of section 4062(e)(2) of such Act, as amended, 
without regard to whether such actions relate to a cessation or other 
event that occurs before or after the date of enactment of this Act.
    (c) Effective Date.--Subsection (b) and the amendment made by 
subsection (a) shall apply as of the date of enactment of this Act.

SEC. 405. CHURCH PLAN CLARIFICATION.

    (a) Application of Controlled Group Rules to Church Plans.--
            (1) In general.--Section 414(c) is amended--
                    (A) by striking ``For purposes'' and inserting the 
                following:
            ``(1) In general.--For purposes'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Church plans.--
                    ``(A) General rule.--Except as provided in 
                subparagraphs (B) and (C), for purposes of this 
                subsection and subsection (m), an organization that is 
                otherwise eligible to participate in a church plan as 
                defined in subsection (e) shall not be aggregated with 
                another such organization and treated as a single 
                employer with such other organization unless--
                            ``(i) one such organization provides 
                        directly or indirectly at least 80 percent of 
                        the operating funds for the other organization 
                        during the preceding tax year of the recipient 
                        organization, and
                            ``(ii) there is a degree of common 
                        management or supervision between the 
                        organizations.
                For purposes of this subparagraph, a degree of common 
                management or supervision exists only if the 
                organization providing the operating funds is directly 
                involved in the day-to-day operations of the other 
                organization.
                    ``(B) Nonqualified church-controlled 
                organizations.--Notwithstanding the provisions of 
                subparagraph (A), for purposes of this subsection and 
                subsection (m), an organization that is a nonqualified 
                church-controlled organization shall be aggregated with 
                one or more other nonqualified church-controlled 
                organizations, or with an organization that is not 
                exempt from tax under section 501, and treated as a 
                single employer with such other organizations, if at 
                least 80 percent of the directors or trustees of such 
                organizations are either representatives of, or 
                directly or indirectly controlled by, the first 
                organization. For purposes of this subparagraph, a 
                `nonqualified church controlled organization' shall 
                mean a church-controlled organization described in 
                section 501(c)(3) that is not a qualified church-
                controlled organization described in section 
                3121(w)(3)(B).
                    ``(C) Permissive aggregation among church-related 
                organizations.--Organizations described in subparagraph 
                (A) may elect to be treated as under common control for 
                purposes of this subsection. Such election shall be 
                made by the church or convention or association of 
                churches with which such organizations are associated 
                within the meaning of section 414(e)(3)(D), or by an 
                organization determined by such church or convention or 
                association of churches to be the appropriate 
                organization for making such election.
                    ``(D) Permissive disaggregation of church-related 
                organizations.--For purposes of subparagraph (A) above, 
                in the case of a church plan (as defined in section 
                414(e)), any employer may permissively disaggregate 
                those entities that are not churches (as defined in 
                section 403(b)(12)(B)) separately from those entities 
                that are churches, even if such entities maintain 
                separate church plans.
                    ``(E) Anti-abuse rule.--For purposes of 
                subparagraphs (A) and (B), the anti-abuse rule in 
                Treasury Regulation section 1.414(c)-5(f) shall 
                apply.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning before, on, or after the 
        date of the enactment of this Act.
    (b) Application of Contribution and Funding Limitations to 403(b) 
Grandfathered Defined Benefit Plans.--
            (1) In general.--Section 251(e)(5) of the Tax Equity and 
        Fiscal Responsibility Act of 1982 (Public Law 97-248), is 
        amended--
                    (A) by striking ``403(b)(2)'' and inserting 
                ``403(b)'', and
                    (B) by inserting before the period at the end the 
                following: ``, and shall be subject to the applicable 
                limitations of section 415(b) of such Code as if it 
                were a defined benefit plan under section 401(a) of 
                such Code and not the limitations of section 415(c) of 
                such Code (relating to limitation for defined 
                contribution plans).''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply as if included in the enactment of the Tax Equity 
        and Fiscal Responsibility Act of 1982.
    (c) Automatic Enrollment by Church Plans.--
            (1) In general.--This subsection shall supersede any law of 
        a State that relates to wage, salary, or payroll payment, 
        collection, deduction, garnishment, assignment or withholding 
        which would directly or indirectly prohibit or restrict the 
        inclusion in any church plan (as defined in this subsection) of 
        an automatic contribution arrangement.
            (2) Definition of automatic contribution arrangement.--For 
        purposes of this subsection, the term ``automatic contribution 
        arrangement'' means an arrangement--
                    (A) under which a participant may elect to have the 
                plan sponsor make payments as contributions under the 
                plan on behalf of the participant, or to the 
                participant directly in cash, and
                    (B) under which a participant is treated as having 
                elected to have the plan sponsor make such 
                contributions in an amount equal to a uniform 
                percentage of compensation provided under the plan 
                until the participant specifically elects not to have 
                such contributions made (or specifically elects to have 
                such contributions made at a different percentage).
            (3) Notice requirements.--
                    (A) The plan administrator of an automatic 
                contribution arrangement shall, within a reasonable 
                period before such plan year, provide to each 
                participant to whom the arrangement applies for such 
                plan year notice of the participant's rights and 
                obligations under the arrangement which--
                            (i) is sufficiently accurate and 
                        comprehensive to apprise the participant of 
                        such rights and obligations, and
                            (ii) is written in a manner calculated to 
                        be understood by the average participant to 
                        whom the arrangement applies.
                    (B) A notice shall not be treated as meeting the 
                requirements of subparagraph (A) with respect to a 
                participant unless--
                            (i) the notice includes an explanation of 
                        the participant's right under the arrangement 
                        not to have elective contributions made on the 
                        participant's behalf (or to elect to have such 
                        contributions made at a different percentage),
                            (ii) the participant has a reasonable 
                        period of time, after receipt of the notice 
                        described in subparagraph (A) and before the 
                        first elective contribution is made, to make 
                        such election, and
                            (iii) the notice explains how contributions 
                        made under the arrangement will be invested in 
                        the absence of any investment election by the 
                        participant.
            (4) Effective date.--This subsection shall take effect on 
        the date of the enactment of this Act.
    (d) Allow Certain Plan Transfers and Mergers.--
            (1) In general.--Section 414 is amended by adding at the 
        end the following new subsection:
    ``(y) Certain Plan Transfers and Mergers.--
            ``(1) In general.--Under rules prescribed by the Secretary, 
        except as provided in paragraph (2), no amount shall be 
        includible in gross income by reason of--
                    ``(A) a transfer of all or a portion of the account 
                balance of a participant or beneficiary, whether or not 
                vested, from a plan described in section 401(a) or an 
                annuity contract described in section 403(b), which is 
                a church plan described in section 414(e) to an annuity 
                contract described in section 403(b), if such plan and 
                annuity contract are both maintained by the same church 
                or convention or association of churches,
                    ``(B) a transfer of all or a portion of the account 
                balance of a participant or beneficiary, whether or not 
                vested, from an annuity contract described in section 
                403(b) to a plan described in section 401(a) or an 
                annuity contract described in section 403(b), which is 
                a church plan described in section 414(e), if such plan 
                and annuity contract are both maintained by the same 
                church or convention or association of churches, or
                    ``(C) a merger of a plan described in section 
                401(a), or an annuity contract described in section 
                403(b), which is a church plan described in section 
                414(e) with an annuity contract described in section 
                403(b), if such plan and annuity contract are both 
                maintained by the same church or convention or 
                association of churches.
            ``(2) Limitation.--Paragraph (1) shall not apply to a 
        transfer or merger unless the participant's or beneficiary's 
        benefit immediately after the transfer or merger is equal to or 
        greater than the participant's or beneficiary's benefit 
        immediately before the transfer or merger.
            ``(3) Qualification.--A plan or annuity contract shall not 
        fail to be considered to be described in sections 401(a) or 
        403(b) merely because such plan or account engages in a 
        transfer or merger described in this subsection.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) Church.--The term `church' includes an 
                organization described in subparagraph (A) or (B)(ii) 
                of subsection (e)(3).
                    ``(B) Annuity contract.--The term `annuity 
                contract' includes a custodial account described in 
                section 403(b)(7) and a retirement income account 
                described in section 403(b)(9).''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to transfers or mergers occurring after the date of 
        the enactment of this Act.
    (e) Investments by Church Plans in Collective Trusts.--
            (1) In general.--In the case of--
                    (A) a church plan (as defined in section 414(e) of 
                the Internal Revenue Code 1986), including a plan 
                described in section 401(a) of such Code and a 
                retirement income account described in section 
                403(b)(9) of such Code, and
                    (B) an organization described in section 
                414(e)(3)(A) of such Code the principal purpose or 
                function of which is the administration of such a plan 
                or account,
        the assets of such plan, account, or organization (including 
        any assets otherwise permitted to be commingled for investment 
        purposes with the assets of such a plan, account, or 
        organization) may be invested in a group trust otherwise 
        described in Internal Revenue Service Revenue Ruling 81-100 (as 
        modified by Internal Revenue Service Revenue Rulings 2004-67 
        and 2011-1), or any subsequent revenue ruling that supersedes 
        or modifies such revenue ruling, without adversely affecting 
        the tax status of the group trust, such plan, account, or 
        organization, or any other plan or trust that invests in the 
        group trust.
            (2) Effective date.--This subsection shall apply to 
        investments made after the date of the enactment of this Act.

SEC. 406. PROTECTING OLDER, LONGER SERVICE PARTICIPANTS.

    (a) In General.--Paragraph (4) of section 401(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(4) Nondiscrimination.--
                    ``(A) In general.--A trust shall not constitute a 
                qualified trust under this section unless the 
                contributions or benefits provided under the plan do 
                not discriminate in favor of highly compensated 
                employees (within the meaning of section 414(q)). For 
                purposes of this paragraph, there shall be excluded 
                from consideration employees described in section 
                410(b)(3) (A) and (C).
                    ``(B) Protection of older, longer service 
                participants.--
                            ``(i)(I) A defined benefit plan described 
                        in subclause (II) shall not fail to satisfy 
                        this paragraph with respect to plan benefits, 
                        rights, or features by reason of--
                                    ``(aa) the composition of the 
                                closed class of participants described 
                                in subclause (II), or
                                    ``(bb) the benefits, rights, or 
                                features provided to such closed class.
                            ``(II) A plan is described in this 
                        subclause if--
                                    ``(aa) the plan provides benefits, 
                                rights, or features to a closed class 
                                of participants,
                                    ``(bb) such closed class and such 
                                benefits, rights, and features satisfy 
                                the requirements of subparagraph (A) 
                                (without regard to this clause) as of 
                                the date that the class was closed, and
                                    ``(cc) after the date as of which 
                                the class was closed, any plan 
                                amendments that modify the closed class 
                                or the benefits, rights, and features 
                                provided to such closed class satisfy 
                                subparagraph (A) (without regard to 
                                this clause).
                        If a plan amendment causes a plan to cease to 
                        be described in this subclause (II) by reason 
                        of subclause (II)(cc), the plan is nevertheless 
                        described in this subclause (II) if such plan 
                        satisfies this subclause (II) (without regard 
                        to subclause (II)(cc)) as of the effective date 
                        of such amendment. In such cases, subclauses 
                        (II)(bb) and (cc) shall subsequently be applied 
                        by reference to the effective date of the plan 
                        amendment, rather than by reference to the 
                        original date that the class was closed.
                            ``(ii)(I) A defined contribution plan 
                        described in subclause (II) shall permitted to 
                        be tested on a benefits basis.
                            ``(II) A defined contribution plan is 
                        described in this subclause if--
                                    ``(aa) the plan provides make-whole 
                                contributions to a closed class of 
                                participants whose defined benefit plan 
                                accruals have been reduced or 
                                eliminated,
                                    ``(bb) such closed class of 
                                participants satisfies section 
                                410(b)(2)(A)(i) as of the date that the 
                                class of participants was closed, and
                                    ``(cc) after the date as of which 
                                the class was closed, any plan 
                                amendments that modify the closed class 
                                or the allocations, benefits, rights, 
                                and features provided to such closed 
                                class satisfy subparagraph (A) (without 
                                regard to this clause).
                        If a plan amendment causes a plan to cease to 
                        be described in this subclause (II) by reason 
                        of subclause (II)(cc), the plan is nevertheless 
                        described in this subclause (II) if such plan 
                        satisfies this subclause (II) (without regard 
                        to subclause (II)(cc)) as of the effective date 
                        of such amendment. In such cases, subclause 
                        (II)(bb) and (cc) shall subsequently be applied 
                        by reference to the effective date of the plan 
                        amendment, rather than by reference to the 
                        original date that the class was closed.
                            ``(III) In addition to other testing 
                        methodologies otherwise applicable, for 
                        purposes of determining compliance with this 
                        paragraph and with section 410(b) of the 
                        portion of one or more defined contribution 
                        plans described in subclause (II) that provide 
                        make-whole contributions, such portion of such 
                        plans may be aggregated and tested on a 
                        benefits basis with the portion of one or more 
                        defined contribution plans that--
                                    ``(aa) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)), or
                                    ``(bb) consists of an employee 
                                stock ownership plan within the meaning 
                                of section 4975(e)(7) or a tax credit 
                                employee stock ownership plan within 
                                the meaning of section 409(a).
                        For such purposes, matching contributions shall 
                        be treated in the same manner as employer 
                        contributions that are made without regard to 
                        whether an employee makes an elective 
                        contribution or employee contribution, 
                        including for purposes of applying the rules of 
                        subsection (l).
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Make-whole contributions.--The term 
                        `make-whole contributions' means allocations 
                        for each employee in the class that are 
                        reasonably calculated, in a consistent manner, 
                        to replace some or all of the retirement 
                        benefits that the employee would have received 
                        under the defined benefit plan and any other 
                        plan or arrangement if the employee had 
                        continued to benefit at the same level under 
                        such defined benefit plan and such other plan 
                        or arrangement.
                            ``(ii) References to closed class of 
                        participants.--References to a closed class of 
                        participants and similar references to a closed 
                        class shall include arrangements under which 
                        one or more classes of participants are closed.
                    ``(D) Protecting grandfathered participants in 
                defined benefit plans.--
                            ``(i) One or more defined benefit plans 
                        described in clause (ii) shall be permitted to 
                        be tested on a benefits basis with one or more 
                        defined contribution plans.
                            ``(ii) A defined benefit plan is described 
                        in this clause if--
                                    ``(I) the plan provides benefits to 
                                a closed class of participants,
                                    ``(II) the plan and such benefits 
                                satisfy the requirements of 
                                subparagraph (A) (without regard to 
                                this subparagraph) as of the date the 
                                class was closed, and
                                    ``(III) after the date as of which 
                                the class was closed, any plan 
                                amendments that modify the closed class 
                                or the benefits provided to such closed 
                                class satisfy subparagraph (A) (without 
                                regard to this subparagraph).
                        If a plan amendment causes a plan to cease to 
                        be described in this clause (ii) by reason of 
                        subclause (III), the plan is nevertheless 
                        described in this clause (ii) if such plan 
                        satisfies this clause (ii) (without regard to 
                        subclause (III)) as of the effective date of 
                        such amendment. In such cases, subclauses (II) 
                        and (III) shall subsequently be applied by 
                        reference to the effective date of the plan 
                        amendment, rather than by reference to the 
                        original date that the class was closed.
                            ``(iii) In addition to other testing 
                        methodologies otherwise applicable, for 
                        purposes of determining compliance with this 
                        paragraph and with section 410(b) of one or 
                        more defined benefit plans described in clause 
                        (ii), such plans may be aggregated and tested 
                        on a benefits basis with the portion of one or 
                        more defined contribution plans that--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)), or
                                    ``(II) consists of an employee 
                                stock ownership plan within the meaning 
                                of section 4975(e)(7) or a tax credit 
                                employee stock ownership plan within 
                                the meaning of section 409(a).
                        For such purposes, matching contributions shall 
                        be treated in the same manner as employer 
                        contributions that are made without regard to 
                        whether an employee makes an elective 
                        contribution or employee contribution, 
                        including for purposes of applying the rules of 
                        subsection (l).
                    ``(E) Rules.--The Secretary may prescribe rules 
                designed to prevent abuse of the plan designs otherwise 
                permitted by reason of subparagraphs (B) and (D). Such 
                rules shall be directed towards abuses under which the 
                defined benefit plan was established within a specified 
                period prior to the date that--
                            ``(i) the class of participants described 
                        in subparagraphs (B)(i)(II)(aa), 
                        (B)(ii)(II)(aa), and (D)(ii)(I) is closed, or
                            ``(ii) the defined benefit plan accruals 
                        have been reduced or eliminated, in the case of 
                        the make-whole contributions described in 
                        subparagraph (C).
                    ``(F) Transition rules.--Within one year after the 
                date of enactment of the Retirement Plan Simplification 
                and Enhancement Act of 2013, the Secretary shall 
                prescribe rules that facilitate the use of the 
                provisions of subparagraph (B) and (D) without regard 
                to--
                            ``(i) whether the closing of the class of 
                        participants referred to in such subparagraphs 
                        occurred before or after such date of 
                        enactment, or
                            ``(ii) plan amendments that were adopted or 
                        effective before such date of enactment and 
                        that would not have been necessary if 
                        subparagraphs (B) and (D) had been in 
                        effect.''.
    (b) Participation Requirements.--Paragraph (26) of section 401(a) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
                    ``(I) Protected participants.--A plan described in 
                this subparagraph shall be deemed to satisfy the 
                requirements of subparagraph (A). A plan is described 
                in this paragraph if--
                            ``(i) the plan is amended to--
                                    ``(I) cease all benefit accruals, 
                                or
                                    ``(II) provide future benefit 
                                accruals only to a closed class of 
                                participants, and
                            ``(ii) the plan satisfies subparagraph (A) 
                        (without regard to this subparagraph) as of the 
                        effective date of the amendment.
                The Secretary may prescribe such rules as are necessary 
                or appropriate to fulfill the purposes of this 
                subparagraph, including prevention of abuse of this 
                subparagraph in the case of plans established within a 
                specific period prior to the effective date of the 
                amendment.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, without regard to 
whether any plan modifications referenced in such amendments are 
adopted or effective before, on, or after such date of enactment.

SEC. 407. REVIEW AND REPORT TO THE CONGRESS RELATING TO REPORTING AND 
              DISCLOSURE REQUIREMENTS.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Secretary of Labor, the Secretary of the Treasury, and 
the Pension Benefit Guaranty Corporation shall review the reporting and 
disclosure requirements of--
            (1) title I of the Employee Retirement Income Security Act 
        of 1974 applicable to pension plans (as defined in section 3(2) 
        of such Act), and
            (2) the Internal Revenue Code of 1986 applicable to 
        qualified retirement plans (as defined in section 4974(c) of 
        such Code without regard to paragraphs (4) and (5) thereof).
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Labor, the Secretary of the 
Treasury, and the Pension Benefit Guaranty Corporation, jointly, shall 
make such recommendations as may be appropriate to the appropriate 
committees of the Congress to consolidate, simplify, standardize, and 
improve the applicable reporting and disclosure requirements so as to 
simplify reporting for plans referenced to in subsection (a) and ensure 
that needed understandable information is provided to participants and 
beneficiaries of such plans.

SEC. 408. CONSOLIDATION OF DEFINED CONTRIBUTION PLAN NOTICES.

    (a) In General.--
            (1) Not later than 18 months after the date of the 
        enactment of this Act, the Secretary of Labor and the Secretary 
        of the Treasury shall adopt final regulations providing that a 
        plan may, but is not required to, consolidate two or more of 
        the notices required under sections 404(c)(5)(B) and 514(e)(3) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1144(e)(3)), sections 401(k)(12)(D), 401(k)(13)(E), and 
        414(w)(4) of the Internal Revenue Code of 1986, and section 
        2550.404a-5 of title 29, Code of Federal Regulations (29 C.F.R. 
        2550.404a-5) into a single notice or, to the extent provided by 
        such regulations, consolidate such notices with the summary 
        plan description or summary of material modifications described 
        in section 104(b) of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1024(b)), so long as the combined 
        notice, summary plan description or summary of material 
        modifications includes the required content, clearly identifies 
        the issues addressed therein, and is provided at the time and 
        with the frequency required for each such notice.
            (2) The Secretary of Labor and the Secretary of the 
        Treasury may include in such regulations rules to ensure that, 
        to the extent such notices are consolidated with the summary 
        plan description or summary of material modifications, the 
        presentation, placement, or prominence of the information in 
        such notices shall not have the effect of failing to inform 
        participants and beneficiaries regarding the information in 
        such notices.
    (b) Provision of Annual Notices Without Regard to Plan Year.--
            (1) Clause (i) of section 404(c)(5)(B) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1104(c)(5)(B)) is amended--
                    (A) in subclause (I) by striking ``within a 
                reasonable period of time before each plan year,'' and 
                inserting ``within a reasonable period before the 
                arrangement described in subparagraph (A) applies to 
                such participant or beneficiary, and thereafter at 
                least once within any 12-month period (without regard 
                to the plan year) during which such arrangement 
                applies,'', and
                    (B) in subclause (II) by striking ``and before the 
                beginning of the plan year''.
            (2) Subparagraph (A) of section 514(e)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1144(e)(3)(A)) is amended by striking ``, within a reasonable 
        period before such plan year, provide to each participant to 
        whom the arrangement applies for such plan year'' and inserting 
        ``, within a reasonable period before the arrangement applies 
        to a participant or beneficiary, and thereafter at least once 
        within any 12-month period (without regard to the plan year) 
        during which such arrangement applies, provide''.
            (3) Clause (i) of section 401(k)(13)(E) of the Internal 
        Revenue Code of 1986 is amended by striking ``, within a 
        reasonable period before each plan year, each employee eligible 
        to participate in the arrangement for such year receives'' and 
        inserting ``each employee eligible to participate in the 
        arrangement receives, within a reasonable period before the 
        employee becomes eligible, and thereafter within a reasonable 
        period before each plan year during which such arrangement 
        applies,''.
            (4) Subparagraph (D) of section 401(k)(12) of the Internal 
        Revenue Code of 1986 is amended by striking ``, within a 
        reasonable period before any year, given written notice'' and 
        inserting ``given written notice, within a reasonable period 
        before the employee becomes eligible, and thereafter within a 
        reasonable period before each plan year during which such 
        arrangement applies,''.
            (5) Subparagraph (A) of section 414(w)(4) of the Internal 
        Revenue Code of 1986 is amended by striking ``, within a 
        reasonable period before each plan year, give to each employee 
        to whom an arrangement described in paragraph (3) applies for 
        such plan year'' and inserting ``, within a reasonable period 
        before an arrangement described in paragraph (3) applies to an 
        employee, and thereafter at least once within any 12-month 
        period (without regard to the plan year) during which such 
        arrangement applies, give to each such employee''.

SEC. 409. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

    Not later than six months after the date of enactment of this Act, 
the Secretary of Labor shall modify the regulations under section 404 
of the Employee Retirement Income Security Act of 1974 to provide that, 
in the case of a designated investment alternative that contains a mix 
of asset classes, a plan administrator may, but is not required to, use 
a benchmark that is a blend of different broad-based securities market 
indices if--
            (1) the blend is reasonably representative of the asset 
        class holdings of the designated investment alternative;
            (2) for purposes of determining the blend's returns for 1-, 
        5-, and 10-calendar year periods (or for the life of the 
        alternative, if shorter), the blend is modified at least once 
        per year to reflect changes in the asset class holdings of the 
        designated investment alternative; and
            (3) each securities market index that is used for an 
        associated asset class would separately satisfy the 
        requirements of such regulations for such asset class.

SEC. 410. PERMIT NONSPOUSAL BENEFICIARIES TO ROLL ASSETS TO PLANS.

    (a) In General.--Section 402(c) is amended by adding at the end the 
following new paragraph:
            ``(12) Distributions to qualified plan of nonspouse 
        beneficiary.--If, with respect to any portion of a distribution 
        from an eligible retirement plan described in paragraph 
        (8)(B)(iii) of a deceased employee, a direct trustee-to-trustee 
        transfer is made to a plan or annuity described in clause 
        (iii), (iv), (v), or (vi) of paragraph (8)(B) of an individual 
        who is a designated beneficiary (as defined by section 
        401(a)(9)(E)) of the employee and who is not the surviving 
        spouse of the employee--
                    ``(A) the transfer shall be treated as an eligible 
                rollover distribution, and
                    ``(B) section 401(a)(9)(B) (other than clause (iv) 
                thereof) shall apply to such plan.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions made after the date of the enactment of this 
Act.

SEC. 411. ELIMINATE THE ``FIRST DAY OF THE MONTH'' REQUIREMENT.

    (a) In General.--Paragraph (4) of section 457(b) is amended to read 
as follows:
            ``(4) which provides that compensation will be deferred 
        only if an agreement providing for such deferral has been 
        entered into before the compensation is currently available to 
        the individual,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after the date of the enactment of this Act.

             TITLE V--PROVISIONS ENSURING EQUITY IN DIVORCE

SEC. 501. SPECIAL RULES RELATING TO TREATMENT OF QUALIFIED DOMESTIC 
              RELATIONS ORDERS.

    (a) Preservation of Assets.--
            (1) Amendment of 1986 code.--Section 414(p) is amended by 
        redesignating paragraph (13) as paragraph (14) and by inserting 
        after paragraph (12) the following new paragraph:
            ``(13) Preservation of assets.--
                    ``(A) In general.--If a spouse or former spouse of 
                a participant notifies a plan in writing that--
                            ``(i) an action is pending pursuant to a 
                        State domestic relations law (including a 
                        community property law), and
                            ``(ii) all or a portion of the benefits 
                        payable with respect to the participant under 
                        the plan are a subject of such action,
                and includes with the notice evidence of the pendency 
                of the action, the plan administrator shall, during the 
                segregation period, separately account for 50 percent 
                of such benefits. Any amounts so separately accounted 
                for may not be distributed by the plan during the 
                segregation period.
                    ``(B) Segregation period.--For purposes of 
                subparagraph (A), the term `segregation period' means 
                the period--
                            ``(i) beginning on the date of the receipt 
                        of the notice, and
                            ``(ii) ending as of the close of the 90-day 
                        period beginning on such date (or, if earlier, 
                        the date of receipt of a domestic relations 
                        order with respect to the participant and the 
                        spouse or former spouse or the date the action 
                        is no longer pending).
                The segregation period shall be extended for 1 or more 
                additional periods described in the preceding sentence 
                upon notice by the spouse or former spouse that the 
                action described in subparagraph (A) is still pending 
                as of the close of any prior segregation period.''.
            (2) Amendment of employee retirement income security act of 
        1974.--Section 206(d)(3) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1056(d)(3)) is amended by 
        redesignating subparagraph (N) as subparagraph (O) and by 
        inserting after subparagraph (M) the following new 
        subparagraph:
                    ``(N) Preservation of assets.--
                            ``(i) In general.--If a spouse or former 
                        spouse of a participant notifies a plan in 
                        writing that--
                                    ``(I) an action is pending pursuant 
                                to a State domestic relations law 
                                (including a community property law), 
                                and
                                    ``(II) all or a portion of the 
                                benefits payable with respect to the 
                                participant under the plan are a 
                                subject of such action,
                        and includes with the notice evidence of the 
                        pendency of the action, the plan administrator 
                        shall, during the segregation period, 
                        separately account for 50 percent of such 
                        benefits. Any amounts so separately accounted 
                        for may not be distributed by the plan during 
                        the segregation period.
                            ``(ii) Segregation period.--For purposes of 
                        clause (i), the term `segregation period' means 
                        the period--
                                    ``(I) beginning on the date of the 
                                receipt of the notice, and
                                    ``(II) ending as of the close of 
                                the 90-day period beginning on such 
                                date (or, if earlier, the date of 
                                receipt of a domestic relations order 
                                with respect to the participant and the 
                                spouse or former spouse or the date the 
                                action is no longer pending).
                        The segregation period shall be extended for 1 
                        or more additional periods described in the 
                        preceding sentence upon notice by the spouse or 
                        former spouse that the action described in 
                        clause (i) is still pending as of the close of 
                        any prior segregation period.''.
    (b) Penalty for Failure To Provide Information Regarding Alternate 
Payees.--Section 502(c) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1132(c)) is amended by redesignating paragraphs (8) 
and (9) as paragraphs (9) and (10), respectively, and by inserting 
after paragraph (7) the following new paragraph:
            ``(8) Failure to provide information regarding alternate 
        payees.--The Secretary may assess a civil penalty against any 
        plan administrator of up to $100 a day from the date of the 
        plan administrator's failure or refusal to provide the 
        information the plan administrator is required to provide under 
        regulations under this Act to prospective alternative payees 
        under a domestic relations order under section 206(d)(3) or to 
        the Secretary or any representative of a prospective 
        alternative payee in connection with such an order.''.
    (c) Allocation of Plan Expenses in Complying With Domestic 
Relations Orders.--
            (1) Amendment of 1986 code.--Section 414(p), as amended by 
        subsection (a), is amended by redesignating paragraph (14) as 
        paragraph (15) and by inserting after paragraph (13) the 
        following new paragraph:
            ``(14) Allocation of expenses.--Any expenses incurred by a 
        plan with respect to compliance with the requirements of this 
        subsection shall not be allocated to an individual participant 
        but rather shall be allocated among all participants on the 
        basis of the relative value of each participant's share of the 
        assets of the plan, on the basis of a flat amount per 
        participant, or on any other reasonable basis provided for 
        under the plan.''.
            (2) Amendment of employee retirement income security act of 
        1974.--Section 206(d)(3) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1056(d)(3)), as amended by 
        subsection (a), is amended by redesignating subparagraph (O) as 
        subparagraph (P) and by inserting after subparagraph (N) the 
        following new subparagraph:
                    ``(O) Allocation of expenses.--Any expenses 
                incurred by a plan with respect to compliance with the 
                requirements of this paragraph shall not be allocated 
                to an individual participant but rather shall be 
                allocated among all participants on the basis of the 
                relative value of each participant's share of the 
                assets of the plan, on the basis of a flat amount per 
                participant, or on any other reasonable basis provided 
                for under the plan.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2013.

SEC. 502. ELIMINATION OF CURRENT CONNECTION REQUIREMENT UNDER RAILROAD 
              RETIREMENT ACT FOR CERTAIN SURVIVORS.

    (a) In General.--Section 2(d)(1) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231a(d)(1)), in the matter preceding paragraph (i), is 
amended by inserting ``, except with respect to survivors described in 
paragraph (i), (ii), or (v),'' after ``December 31, 1995) and''.
    (b) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on the date of enactment of this Act.
            (2) Retroactive application to certain survivors.--If a 
        survivor of a deceased employee would be entitled to an annuity 
        by reason of the amendment made by subsection (a) but for the 
        fact that the employee died before the date of the enactment of 
        this Act, the survivor shall be entitled to such an annuity but 
        only with respect to annuity payments for months beginning on 
        or after such date. Appropriate adjustments shall be made in 
        annuity payments of other individuals to reflect any annuity 
        payable by reason of this paragraph.

SEC. 503. PERMITTING DIVORCED SPOUSES AND WIDOWS AND WIDOWERS TO 
              REMARRY AFTER TURNING 60 WITHOUT A PENALTY UNDER RAILROAD 
              RETIREMENT ACT.

    (a) In General.--
            (1) Divorced spouse.--Section 2(c)(4) of the Railroad 
        Retirement Act of 1974 (45 U.S.C. 231a(c)(4)) is amended by 
        adding at the end the following new sentence: ``For purposes of 
        paragraph (ii)(B), if a divorced wife marries after attaining 
        age 60, such marriage shall be deemed not to have occurred.''.
            (2) Widows and widowers.--Section 2(d)(1)(v) of the 
        Railroad Retirement Act of 1974 (45 U.S.C. 231a(d)(1)(v)) is 
        amended by adding at the end the following new sentence: ``For 
        purposes of this paragraph, if a widow marries after attaining 
        age 60, such marriage shall be deemed not to have occurred.''.
    (b) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of enactment of this Act.
            (2) Retroactive application.--If a divorced wife, widow, or 
        widower would be entitled to an annuity by reason of the 
        amendments made by this section but for the fact the individual 
        was married before the date of the enactment of this Act, the 
        individual shall be entitled to such an annuity but only with 
        respect to annuity payments for months beginning on or after 
        such date. Appropriate adjustments shall be made in annuity 
        payments of other individuals to reflect any annuity payable by 
        reason of this paragraph.

SEC. 504. REPEAL OF JURISDICTIONAL REQUIREMENT FOR COURT TO TREAT 
              MILITARY RETIREMENT PAY AS PROPERTY OF THE MILITARY 
              MEMBER AND SPOUSE.

    (a) In General.--Section 1408(c) of title 10, United States Code, 
is amended by striking paragraph (4).
    (b) Effective Date.--The amendment made by this section shall apply 
to final decrees issued on or after the date of the enactment of this 
Act.

SEC. 505. MODIFICATION OF REDUCTIONS IN DISPOSABLE RETIRED PAY FOR 
              PAYMENTS IN COMPLIANCE WITH COURT ORDERS.

    (a) In General.--Section 1408(d) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
            ``(8) Notwithstanding subsection (a)(4) or (e)(1), if the 
        disposable retired pay of a member is reduced under 
        subparagraph (B) of subsection (a)(4) as a result of a waiver 
        required to receive compensation under title 38, or is reduced 
        under subparagraph (C) of subsection (a)(4), the Secretary 
        concerned shall pay (subject to any other limitation under this 
        section) to the spouse or former spouse the lesser of--
                    ``(A) the amount payable under the final court 
                order from the disposable retired pay (determined 
                without regard to such reductions), or
                    ``(B) 100 percent of the disposable retired pay 
                (determined after such reductions).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments of disposable retired pay attributable to periods beginning 
on or after the date of the enactment of this Act with respect to final 
court orders issued on, before, or after such date.

SEC. 506. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES 
              OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Definition.--Section 8341(a) of title 5, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``employee or Member'' 
        and inserting ``employee, Member, or annuitant, or of a former 
        employee or Member,''; and
            (2) in paragraph (2), by striking ``employee or Member'' 
        and inserting ``employee, Member, or annuitant, or of a former 
        employee or Member,''.
    (b) Benefits for Widow, Widower, or Former Spouse.--
            (1) In general.--Section 8341 of title 5, United States 
        Code, is amended by adding at the end the following:
    ``(l) If a former employee heretofore or hereafter separated from 
the service with title to deferred annuity from the Fund hereafter dies 
before having established a valid claim for annuity and is survived by 
a widow or widower to whom married at the date of separation, the widow 
or widower--
            ``(1) is entitled to an annuity equal to 55 percent of the 
        deferred annuity of the former employee commencing on the day 
        after the former employee dies and terminating on the last day 
        of the month before the widow or widower dies or remarries 
        before becoming 55 years of age; or
            ``(2) may elect to receive the lump-sum credit instead of 
        annuity if the widow or widower is the individual who would be 
        entitled to the lump-sum credit and files application therefor 
        with the Office before the award of the annuity.
        Notwithstanding the preceding sentence, an annuity payable 
        under this subsection to the widow or widower of a former 
        employee may not exceed the difference between--
                    ``(A) the annuity which would otherwise be payable 
                to such widow or widower under this subsection, and
                    ``(B) the amount of the survivor annuity payable to 
                any former spouse of such former employee under 
                subsection (h) of this section.''.
            (2) Technical and conforming amendments.--Section 8339(j) 
        of title 5, United States Code, is amended--
                    (A) in paragraph (3)(A)(ii), by striking ``and 
                (h)'' and inserting ``(h), and (l)''; and
                    (B) in paragraph (4), by striking ``and (h)'' and 
                inserting ``(h), and (l)''.
    (c) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1), by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii), by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)--
                            (i) in clause (ii), by striking ``or'' at 
                        the end;
                            (ii) in clause (iii), by striking the 
                        period and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iv) under subparagraph (A) of subsection 
                        (l) of this section in the case of a widow or 
                        widower, if the deceased was a former employee 
                        described in the first sentence of such 
                        subsection.''.
    (d) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following: ``The Office shall provide by regulation for the application 
of this subsection to the widow, widower, or surviving former spouse of 
a former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply only in 
the case of a former employee who dies on or after such date.

SEC. 507. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR 
              FORMER SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--Section 8345(j) of title 5, 
United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3)(A) A court decree, court order, property settlement, 
        or similar process referred to under paragraph (1)(A) shall be 
        treated as meeting the requirements of that paragraph if it 
        requires that payment of benefits be made to the former spouse 
        of the employee, Member, or annuitant--
                    ``(i) in the case of any payment before the 
                employee, Member, or annuitant has separated from 
                service, on or after the date on which the employee, 
                Member, or annuitant attains (or would have attained) 
                the earliest retirement age,
                    ``(ii) as if the employee, Member, or annuitant had 
                retired on the date on which such payment is to begin 
                under such order (but taking into account only the 
                present value of the benefits actually accrued and not 
                taking into account the present value of any employer 
                subsidy for early retirement), and
                    ``(iii) in any form in which such benefits may be 
                paid under this chapter to the employee, Member, or 
                annuitant (other than in the form of a joint and 
                survivor annuity with respect to the former spouse and 
                his or her subsequent spouse).
        For purposes of clause (ii), the interest rate assumption used 
        in determining the present value shall be the interest rate 
        specified under this subchapter or, if no rate is specified, 5 
        percent.
            ``(B) In this paragraph, the term `earliest retirement age' 
        means the earlier of--
                    ``(i) the date on which the employee, Member, or 
                annuitant is entitled to a distribution under this 
                subchapter, or
                    ``(ii) the later of--
                            ``(I) the date the employee, Member, or 
                        annuitant attains age 50, or
                            ``(II) the earliest date on which the 
                        employee, Member, or annuitant could begin 
                        receiving benefits under this chapter if the 
                        employee, Member, or annuitant separated from 
                        service.''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c)(1) A court decree, court order, property settlement, or 
similar process referred to under subsection (a)(1) shall be treated as 
meeting the requirements of that subsection if it requires that payment 
of benefits be made to the former spouse of the employee, Member, or 
annuitant--
            ``(A) in the case of any payment before the employee, 
        Member, or annuitant has separated from service, on or after 
        the date on which the employee, Member, or annuitant attains 
        (or would have attained) the earliest retirement age,
            ``(B) as if the employee, Member, or annuitant had retired 
        on the date on which such payment is to begin under such order 
        (but taking into account only the present value of the benefits 
        actually accrued and not taking into account the present value 
        of any employer subsidy for early retirement), and
            ``(C) in any form in which such benefits may be paid under 
        this chapter to the employee, Member, or annuitant (other than 
        in the form of a joint and survivor annuity with respect to the 
        alternate payee and his or her subsequent spouse).
For purposes of subparagraph (B), the interest rate assumption used in 
determining the present value shall be the interest rate specified 
under this chapter or, if no rate is specified, 5 percent.
    ``(2) In this subsection, the term `earliest retirement age' means 
the earlier of--
            ``(A) the date on which the employee, Member, or annuitant 
        is entitled to a distribution under this chapter, or
            ``(B) the later of--
                    ``(i) the date the employee, Member, or annuitant 
                attains age 50, or
                    ``(ii) the earliest date on which the employee, 
                Member, or annuitant could begin receiving benefits 
                under this chapter if the employee, Member, or 
                annuitant separated from service.''.
    (c) Effective Date and Application.--The amendments made by this 
section shall take effect on the date of the enactment of this Act and 
apply to any court decree, court order, property settlement, or similar 
process issued or approved before, on, or after that date.

       TITLE VI--OFFICE OF PARTICIPANT AND PLAN SPONSOR ADVOCATE

SEC. 601. OFFICE OF PARTICIPANT AND PLAN SPONSOR ADVOCATE.

    (a) In General.--Section 7803 is amended by adding at the end the 
following:
    ``(e) Participant and Plan Sponsor Advocate.--
            ``(1) In general.--There is established in the Internal 
        Revenue Service an office to be known as the `Office of the 
        Participant and Plan Sponsor Advocate'.
            ``(2) Participant and plan sponsor advocate.--
                    ``(A) In general.--The Office of the Participant 
                and Plan Sponsor Advocate shall be under the 
                supervision and direction of an official to be known as 
                the `Participant and Plan Sponsor Advocate'. The 
                Commissioner shall select the Participant and Plan 
                Sponsor Advocate without regard to the provisions of 
                title 5, United States Code, relating to appointments 
                in the competitive service or Senior Executive Service.
                    ``(B) Duties.--The Participant and Plan Sponsor 
                Advocate shall--
                            ``(i) act as a liaison between the Internal 
                        Revenue Service, sponsors of sponsors of 
                        qualified retirement plans (as defined in 
                        section 4974(c)), and participants in such 
                        plans;
                            ``(ii) advocate for the full attainment of 
                        the rights of such plan sponsors and 
                        participants;
                            ``(iii) assist pension plan sponsors and 
                        participants in resolving disputes with the 
                        Internal Revenue Service;
                            ``(iv) identify areas in which participants 
                        and plan sponsors have persistent problems in 
                        dealings with the Internal Revenue Service;
                            ``(v) to the extent possible, propose 
                        changes in the administrative practices of the 
                        Internal Revenue Service to mitigate problems;
                            ``(vi) identify potential legislative 
                        changes which may be appropriate to mitigate 
                        problems; and
                            ``(vii) refer instances of fraud, waste, 
                        and abuse, and violations of law to the Office 
                        of the Treasury Inspector General for Tax 
                        Administration.
                    ``(C) Removal.--If the Participant and Plan Sponsor 
                Advocate is removed from office or is transferred to 
                another position or location within the Internal 
                Revenue Service, the Commissioner shall communicate in 
                writing the reasons for any such removal or transfer to 
                Congress not less than 30 days before the removal or 
                transfer. Nothing in this paragraph shall prohibit a 
                personnel action otherwise authorized by law, other 
                than transfer or removal.
                    ``(D) Compensation.--The annual rate of basic pay 
                for the Participant and Plan Sponsor Advocate shall be 
                the same rate as the highest rate of basic pay 
                established for the Senior Executive Service under 
                section 5382 of title 5, United States Code, or, if the 
                Commissioner so determines, at a rate fixed under 
                section 9503 of such title.
            ``(3) Annual report.--
                    ``(A) In general.--Not later than December 31 of 
                each calendar year, the Participant and Plan Sponsor 
                Advocate shall report to the Health, Education, Labor, 
                and Pensions Committee of the Senate, the Committee on 
                Finance of the Senate, the Committee on Education and 
                the Workforce of the House of Representatives, and the 
                Committee on Ways and Means of the House of 
                Representatives on the activities of the Office of the 
                Participant and Plan Sponsor Advocate during the fiscal 
                year ending during such calendar year.
                    ``(B) Content.--Each report submitted under 
                subparagraph (A) shall--
                            ``(i) summarize the assistance requests 
                        received from participants and plan sponsors 
                        and describe the activities, and evaluate the 
                        effectiveness, of the Participant and Plan 
                        Sponsor Advocate during the preceding year;
                            ``(ii) identify significant problems the 
                        Participant and Plan Sponsor Advocate has 
                        identified;
                            ``(iii) include specific legislative and 
                        regulatory changes to address the problems; and
                            ``(iv) identify any actions taken to 
                        correct problems identified in any previous 
                        report.
                    ``(C) Concurrent submission.--The Participant and 
                Plan Sponsor Advocate shall submit a copy of each 
                report to the Secretary of the Treasury, the 
                Commissioner of Internal Revenue, and any other 
                appropriate official at the same time such report is 
                submitted to the committees of Congress under 
                subparagraph (A).''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on January 1, 2014.
                                 <all>
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