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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4524 Introduced in House (IH)]

<DOC>

115th CONGRESS
  1st Session
                                H. R. 4524

  To expand retirement coverage, preserve retirement income, simplify 
       rules related to retirement plans, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            December 1, 2017

   Mr. Neal introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Education and the Workforce, 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 expand retirement coverage, preserve retirement income, simplify 
       rules related to 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement Plan 
Simplification and Enhancement Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; 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. Facilitating automatic enrollment.
Sec. 104. Credit for employers with respect to modified safe harbor 
                            requirements.
Sec. 105. 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. 106. Separate application of top heavy rules to defined 
                            contribution plans covering part-time 
                            employees.
Sec. 107. Opportunity to claim the saver's credit on form 1040EZ.
Sec. 108. Additional time to adopt a qualified plan.
Sec. 109. Repeal of maximum age for traditional IRA contributions.
Sec. 110. 60-day rollover to inherited individual retirement plan of 
                            nonspouse beneficiary.
Sec. 111. Increase in age for required beginning date for mandatory 
                            distributions.
Sec. 112. Increase in credit limitation for small employer pension plan 
                            startup costs.
Sec. 113. Safe harbor for corrections of employee elective deferral 
                            failures.
Sec. 114. Economically targeted investments.
Sec. 115. Small immediate financial incentives for contributing to a 
                            plan.
                    TITLE II--PRESERVATION OF INCOME

Sec. 201. Availability of distribution options.
Sec. 202. Portability of lifetime income and managed account options.
Sec. 203. Qualifying longevity annuity contracts.
Sec. 204. Remove required minimum distribution barriers for life 
                            annuities.
  TITLE III--SIMPLIFICATION AND CLARIFICATION OF QUALIFIED RETIREMENT 
                               PLAN RULES

Sec. 301. Exception from required distributions where aggregate 
                            retirement savings do not exceed $250,000.
Sec. 302. Expansion of employee plans compliance resolution system.
Sec. 303. Review and report to the congress relating to reporting and 
                            disclosure requirements.
Sec. 304. Consolidation of defined contribution plan notices.
Sec. 305. Performance benchmarks for asset allocation funds.
Sec. 306. Permit nonspousal beneficiaries to roll assets to plans.
Sec. 307. Eliminate the ``first day of the month'' requirement.
Sec. 308. Office of participant and plan sponsor advocate.
Sec. 309. Simplifying 402(f) notices.
Sec. 310. Guidance related to certain overpayment recoupment practices.
Sec. 311. Rules relating to election of safe harbor 401(k) status.
Sec. 312. Use of forfeitures to fund safe harbor contributions.
Sec. 313. Treatment of custodial accounts on termination of section 
                            403(b) plans.
                 TITLE IV--DEFINED BENEFIT PLAN REFORMS

Sec. 401. Cash balance.
Sec. 402. Aligning use of lookback months to determine interest rates.
Sec. 403. Aligning employer pension contribution due date with 
                            corporate return due date.
Sec. 404. Clarification of the role of the 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) of the Internal Revenue Code of 1986 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 7 percent during the first 
                        plan year following the plan year described in 
                        clause (i),
                            ``(iii) at least 8 percent during the 
                        second plan year following the plan year 
                        described in clause (i),
                            ``(iv) at least 9 percent during the thirds 
                        plan year following the plan year described in 
                        clause (i), and
                            ``(v) 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--
                                    ``(I) 100 percent of the elective 
                                contributions of the employee to the 
                                extent that such contributions do not 
                                exceed 1 percent of compensation,
                                    ``(II) 50 percent of so much of 
                                such contributions as exceed 1 percent 
                                but do not exceed 6 percent of 
                                compensation, plus
                                    ``(III) 25 percent of so much of 
                                such contributions as exceed 6 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 the Internal Revenue Code of 1986 is amended by 
redesignating paragraph (13) as paragraph (14) and by inserting after 
paragraph (12) the following new paragraph:
            ``(13) Alternative method for secure deferral 
        arrangements.--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) Conforming Amendment.--Subparagraph (H) of section 416(g)(4) of 
the Internal Revenue Code of 1986 is amended--
            (1) in clause (i), by striking ``section 401(k)(12) or 
        401(k)(13)'' and inserting ``paragraph (12), (13), or (14) of 
        section 401(k)'', and
            (2) in clause (ii), by striking ``section 401(m)(11) or 
        401(m)(12)'' and inserting ``paragraph (11), (12), or (13) of 
        section 401(m)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2017.

SEC. 103. FACILITATING AUTOMATIC ENROLLMENT.

    The Secretary of the Treasury shall promulgate regulations or other 
guidance that--
            (1) simplify and clarify the rules regarding the timing of 
        participant notices required under section 401(k)(13)(E) of the 
        Internal Revenue Code of 1986, with specific application to--
                    (A) plans that allow employees to be eligible for 
                participation immediately upon beginning employment; 
                and
                    (B) employers with multiple payroll and 
                administrative systems; and
            (2) simplify and clarify the automatic escalation rules 
        under sections 401(k)(13)(C)(iii) and 401(k)(14)(C) of the 
        Internal Revenue Code of 1986 in the context of employers with 
        multiple payroll and administrative systems.
Such regulations or guidance shall address the particular case of 
employees within the same plan who are subject to different notice 
timing and different percentage requirements, and provide assistance 
for plan sponsors in managing such cases.

SEC. 104. CREDIT FOR EMPLOYERS WITH RESPECT TO MODIFIED SAFE HARBOR 
              REQUIREMENTS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. CREDIT FOR SMALL EMPLOYERS WITH RESPECT TO MODIFIED SAFE 
              HARBOR REQUIREMENTS FOR AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
small employer, the safe harbor adoption credit determined under this 
section for any taxable year is the amount equal to the total of the 
employer's matching contributions under section 401(k)(14)(D) during 
the taxable year on behalf of employees who are not highly compensated 
employees, subject to the limitations of subsection (b).
    ``(b) Limitations.--
            ``(1) Limitation with respect to compensation.--The credit 
        determined under subsection (a) with respect to contributions 
        made on behalf of an employee who is not a highly compensated 
        employee shall not exceed 2 percent of the compensation of such 
        employee for the taxable year.
            ``(2) Limitation with respect to years of participation.--
        Credit shall be determined under subsection (a) with respect to 
        contributions made on behalf of an employee who is not a highly 
        compensated employee only during the first 5 years such 
        employee participates in the qualified automatic contribution 
        arrangement.
    ``(c) Definitions.--
            ``(1) In general.--Any term used in this section which is 
        also used in section 401(k)(14) shall have the same meaning as 
        when used in such section.
            ``(2) Small employer.--The term `small employer' means an 
        eligible employer (as defined in section 408(p)(2)(C)(i)).
    ``(d) Denial of Double Benefit.--No deduction shall be allowable 
under this title for any contribution with respect to which a credit is 
allowed under this section.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 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 new paragraph:
            ``(37) the safe harbor adoption credit determined under 
        section 45S.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding after the item relating to section 45R the 
following new item:

``Sec. 45S. Credit for small employers with respect to modified safe 
                            harbor requirements for automatic 
                            contribution arrangements.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years that include any portion of a plan year 
beginning after December 31, 2017.

SEC. 105. 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) of 
        the Internal Revenue Code of 1986 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) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(15) 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, 2017, 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, 2018, shall not be taken into account.

SEC. 106. SEPARATE APPLICATION OF TOP HEAVY RULES TO DEFINED 
              CONTRIBUTION PLANS COVERING PART-TIME EMPLOYEES.

    (a) In General.--Paragraph (2) of section 416(c) of the Internal 
Revenue Code of 1986 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. 107. OPPORTUNITY TO CLAIM THE SAVER'S CREDIT ON FORM 1040EZ.

    The Secretary of the Treasury shall modify the forms for the return 
of tax of individuals in order to allow individuals claiming the credit 
under section 25B of the Internal Revenue Code of 1986 to file (and 
claim such credit on) Form 1040EZ.

SEC. 108. ADDITIONAL TIME TO ADOPT A QUALIFIED PLAN.

    (a) In General.--Subsection (a) of section 401 of the Internal 
Revenue Code of 1986 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. An employer may elect to have a 
        plan adopted in accordance with this paragraph 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, 2017.

SEC. 109. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA CONTRIBUTIONS.

    (a) In General.--Paragraph (1) of section 219(d) of the Internal 
Revenue Code of 1986 is repealed.
    (b) Conforming Amendment.--Subsection (c) of section 408A of the 
Internal Revenue Code of 1986 is amended by striking paragraph (4) and 
by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), 
and (6), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made for taxable years beginning after December 
31, 2017.

SEC. 110. 60-DAY ROLLOVER TO INHERITED INDIVIDUAL RETIREMENT PLAN OF 
              NONSPOUSE BENEFICIARY.

    (a) In General.--Section 402(c)(11) of the Internal Revenue Code of 
1986 is amended by redesignating subparagraph (B) as subparagraph (C) 
and by striking subparagraph (A) and inserting the following:
                    ``(A) In general.--If--
                            ``(i) any portion of a distribution 
                        attributable to an employee is paid after the 
                        death of the employee to 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, and
                            ``(ii) such portion is transferred or paid 
                        to an individual retirement plan in a transfer 
                        or payment meeting the requirements of 
                        subparagraph (B),
                the preceding provisions of this subsection shall apply 
                to such distribution in the same manner as if the 
                designated beneficiary were the employee.
                    ``(B) Requirements for transfer of distribution.--
                The requirements of this subparagraph are met with 
                respect to the portion of any distribution if--
                            ``(i) such portion is transferred or paid 
                        to an individual retirement plan described in 
                        clause (i) or (ii) of paragraph (8)(B) 
                        established for the purposes of receiving the 
                        distribution on behalf of the designated 
                        beneficiary,
                            ``(ii) such individual retirement plan is 
                        established as an inherited individual 
                        retirement account or individual retirement 
                        annuity (within the meaning of section 
                        408(d)(3)(C)), whichever is applicable, and
                            ``(iii) notice is provided to the trustee, 
                        insurance company, or other provider of the 
                        individual retirement plan that such individual 
                        retirement plan is being established as an 
                        inherited individual retirement account or 
                        individual retirement annuity.
                Section 401(a)(9)(B) (other than clause (iv) thereof) 
                shall apply to such individual retirement plan.''.
    (b) Rollover Treatment for Inherited Accounts.--Section 
408(d)(3)(C) of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:
                            ``(iii) Exception for qualified transfers 
                        to another inherited account.--Clause (i) shall 
                        not apply to any portion of a distribution out 
                        of an inherited individual retirement account 
                        or inherited individual retirement annuity if 
                        such portion is paid to another such individual 
                        retirement plan or annuity but only if the 
                        requirements of subparagraphs (A), (B), and (E) 
                        of this paragraph, and the requirements of 
                        section 402(c)(11)(B), are met with respect to 
                        such transfer or payment.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2017.

SEC. 111. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY 
              DISTRIBUTIONS.

    (a) Increase in Age for Required Beginning Date.--
            (1) In general.--Subclause (I) of section 401(a)(9)(C)(i) 
        of the Internal Revenue Code of 1986 is amended to read as 
        follows:
                                    ``(I) the first calendar year in 
                                which the employee attains the 
                                applicable age for such calendar year, 
                                or''.
            (2) Special rule for owners.--Subclause (I) of section 
        401(a)(9)(C)(ii) of such Code is amended by striking ``in which 
        the employee attains age 70\1/2\'' and inserting ``described in 
        clause (i)(I) with respect to the employee''.
    (b) Mandatory Distribution Age.--Paragraph (9) of section 401(a) of 
the Internal Revenue Code of 1986 is amended by inserting at the end 
the following new subparagraph:
                    ``(H) Applicable age.--For purposes of this 
                paragraph--
                            ``(i) In general.--The applicable age is--
                                    ``(I) for calendar years before 
                                2019, age 70\1/2\,
                                    ``(II) for calendar years 2019, 
                                2020, 2021, 2022, and 2023, age 71,
                                    ``(III) for calendar years 2024, 
                                2025, 2026, 2027, and 2028, age 72,
                                    ``(IV) for calendar year 2029, age 
                                73, and
                                    ``(V) for calendar years after 
                                2029, the age as adjusted under clause 
                                (ii).
                            ``(ii) Adjustment.--The Secretary shall 
                        adjust the age under clause (i)(IV) for 
                        calendar year 2030 and each succeeding calendar 
                        year in a manner proportional to increases in 
                        the life expectancy of an individual who 
                        attained age 73 in the calendar year preceding 
                        the calendar year for which the adjustment is 
                        being made as compared to the life expectancy 
                        of an individual who attained age 73 in 2028. 
                        The applicable age for any calendar year as 
                        adjusted under this clause--
                                    ``(I) shall be applicable only with 
                                respect to employees whose required 
                                beginning date has not occurred as of 
                                December 31 of the year preceding such 
                                year, and
                                    ``(II) shall be rounded to the next 
                                lowest whole number.
                            ``(iii) Life expectancies.--The life 
                        expectancies under clause (ii) shall be 
                        determined on a unisex basis in accordance with 
                        life expectancies underlying the tables 
                        described in section 430(h)(3)(A).''.
    (c) Spouse Beneficiaries.--Subclause (I) of section 
401(a)(9)(B)(iv) of the Internal Revenue Code of 1986 is amended by 
striking ``age 70\1/2\'' and inserting ``the applicable age''.
    (d) Conforming Amendment.--Subsection (b) of section 408 of such 
Code is amended by striking ``age 70\1/2\'' and inserting ``the 
applicable age determined under section 401(a)(9)(H) with respect to 
such individual''.
    (e) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2017.

SEC. 112. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) In General.--Paragraph (1) of section 45E(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) for the first credit year and each of the 4 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) Special Rule for Employers With 25 or Fewer Employees.--
Subsection (a) of section 45E of such Code is amended by inserting 
before the period at the end the following: ``(100 percent of such 
costs in the case of an eligible employer with 25 or fewer employees, 
as determined by substituting `25' for `100' in section 
408(p)(2)(C)(i))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 113. SAFE HARBOR FOR CORRECTIONS OF EMPLOYEE ELECTIVE DEFERRAL 
              FAILURES.

    (a) In General.--Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(aa) Correcting Automatic Contribution Errors.--
            ``(1) In general.--Any plan or arrangement shall not fail 
        to satisfy any requirement of this subchapter or section 457 
        solely by reason of a corrected error.
            ``(2) Corrected error defined.--For purposes of this 
        subsection, the term `corrected error' means a reasonable 
        administrative error in implementing an automatic enrollment or 
        automatic escalation feature in accordance with the terms of an 
        eligible automatic contribution arrangement (as defined under 
        subsection (w)(3)), provided that the implementation failure is 
        corrected by the date that is 9\1/2\ months after the end of 
        the plan year during which the failure occurred. Such 
        correction may occur before or after the participant has 
        terminated employment and may occur without regard to whether 
        the error is identified by the Secretary.''.
    (b) Effective Date.--The amendment made by this Act shall apply 
with respect to any errors with respect to which the date referred to 
in section 414(aa) (as added by this section) is after the date of 
enactment of this Act.

SEC. 114. ECONOMICALLY TARGETED INVESTMENTS.

    Subsection (a) of section 404 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end 
the following new paragraph:
    ``(3) A fiduciary shall not fail to satisfy the requirements of 
this subsection solely by reason of taking into account economic, 
social, and governance factors in connection with an investment or 
investment strategy, but only if the fiduciary prudently determines the 
investment is appropriate based solely on economic considerations, 
including those derived from such factors.''.

SEC. 115. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A 
              PLAN.

    (a) In General.--Subparagraph (A) of section 401(k)(4) of the 
Internal Revenue Code of 1986 is amended by inserting ``(other than a 
de minimus financial incentive)'' after ``any other benefit''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after the date of 
enactment of this Act.

                    TITLE II--PRESERVATION OF INCOME

SEC. 201. 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. 202. PORTABILITY OF LIFETIME INCOME AND MANAGED ACCOUNT OPTIONS.

    (a) In General.--Subsection (a) of section 401 of the Internal 
Revenue Code of 1986 is amended by inserting after paragraph (37) the 
following new paragraph:
            ``(38) Portability of lifetime income and managed account 
        options.--
                    ``(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 a managed account 
                        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 or such 
                managed account 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), and in the case of a managed 
                        account investment, the eligible retirement 
                        plan must be maintained by the account manager 
                        of such managed account investment,
                            ``(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,
                            ``(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),
                            ``(v) the term `managed account investment' 
                        means an investment option under which the 
                        assets of the employee's individual account are 
                        managed by an account manager, applying 
                        generally accepted investment theories, to 
                        achieve varying degrees of long-term 
                        appreciation and capital preservation based on 
                        the employee's age, target retirement date or 
                        life expectancy,
                            ``(vi) the term `account manager' means an 
                        investment manager (within the meaning of 
                        section 3(38) of the Employee Retirement Income 
                        Security Act), and
                            ``(vii) a lifetime income investment or 
                        managed account investment is treated as no 
                        longer authorized to be held as an investment 
                        under the plan if such treatment applies to all 
                        plan participants or to a class of such 
                        participants, as determined in any reasonable 
                        manner.''.
    (b) Cash or Deferred Arrangement.--Clause (i) of section 
401(k)(2)(B) of such Code 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)) or a managed account 
                                investment (as defined in section 
                                401(a)(38)(B)(v)), the date that is 90 
                                days prior to the date that such 
                                lifetime income investment or such 
                                managed account investment may no 
                                longer be held as an investment option 
                                under the plan (within the meaning of 
                                section 401(a)(38)(B)(vii)), 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, in the 
                                case of a lifetime income investment, 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) of 
        such Code 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)) or a managed account investment (as 
                defined in section 401(a)(38)(B)(v)), the date that is 
                90 days prior to the date that such lifetime income 
                investment or such managed account investment may no 
                longer be held as an investment option under the plan 
                (within the meaning of section 401(a)(38)(B)(vii)), 
                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, in the case of 
                a lifetime income investment, 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) of such Code 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)) or a managed account 
                                investment (as defined in section 
                                401(a)(38)(B)(v)), the date that is 90 
                                days prior to the date that such 
                                lifetime income investment or such 
                                managed account investment may no 
                                longer be held as an investment option 
                                under the plan (within the meaning of 
                                section 401(a)(38)(B)(vii)), 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, in the 
                                case of a lifetime income investment, 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) of such Code 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)) or a managed account 
                        investment (as defined in section 
                        401(a)(38)(B)(v)), the date that is 90 days 
                        prior to the date that such lifetime income 
                        investment or such managed account investment 
                        may no longer be held as an investment option 
                        under the plan (within the meaning of section 
                        401(a)(38)(B)(vii)), 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, in the 
                        case of a lifetime income investment, 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, 2017.

SEC. 203. QUALIFYING LONGEVITY ANNUITY CONTRACTS.

    (a) In General.--By the date that is one year after the date of 
enactment of this Act, the Secretary of the Treasury shall amend the 
regulation issued by the Department of the Treasury relating to 
``Longevity Annuity Contracts'' 79 Fed. Reg. 37633 (July 2, 2014), as 
follows:
            (1) Repeal 25-percent premium limit.--The Secretary shall 
        amend Q&A-17(b)(3) of 26 C.F.R. section 1.401(a)(9)-6 and Q&A-
        12(b)(3) of 26 C.F.R. section 1.408-8 to eliminate the 
        requirement that premiums for qualifying longevity annuity 
        contracts be limited to 25 percent of an individual's account 
        balance, and to make such corresponding changes to the 
        regulations and related forms as necessary to reflect the 
        elimination of this requirement.
            (2) Increase dollar limitation.--
                    (A) The Secretary shall amend Q&A-17(b)(2)(i) of 26 
                C.F.R. section 1.401(a)(9)-6 and Q&A-12(b)(2)(i) of 26 
                C.F.R. section 1.408-8 to increase the dollar 
                limitation on premiums for qualifying longevity annuity 
                contracts from $125,000 to $200,000, and to make such 
                corresponding changes to the regulations and related 
                forms as necessary to reflect this increase in the 
                dollar limitation.
                    (B) The Secretary shall amend Q&A-17(d)(2)(i) of 26 
                C.F.R. section 1.401(a)(9)-6 to provide that, in the 
                case of calendar years beginning on or after January 1 
                of the second year following the year of enactment of 
                this Act, the $200,000 dollar limitation (as increased 
                by subparagraph (A)) will be adjusted at the same time 
                and in the same manner as the limits are adjusted under 
                section 415(d) of the Internal Revenue Code of 1986, 
                except that the base period shall be the calendar 
                quarter beginning July 1 of the year of enactment of 
                this Act, and any increase to such dollar limitation 
                that is not a multiple of $10,000 will be rounded to 
                the next lowest multiple of $10,000.
            (3) Facilitate joint and survivor benefits.--The Secretary 
        shall amend Q&A-17(c) of 26 C.F.R. section 1.401(a)(9)-6, and 
        make such corresponding changes to the regulations and related 
        forms as necessary, to provide that in the case of a qualifying 
        longevity annuity contract that was purchased with joint and 
        survivor annuity benefits for the individual and his or her 
        spouse that were permissible under the regulations at the time 
        the contract was originally purchased, a divorce occurring 
        after the original purchase and before the annuity payments 
        commence under the contract will not affect the permissibility 
        of the joint and survivor annuity benefits or other benefits 
        under the contract, or require any adjustment to the amount or 
        duration of benefits payable under the contract, provided that 
        a qualified domestic relations order (within the meaning of 
        section 414(p) of the Internal Revenue Code of 1986) or a 
        divorce or separation instrument (within the meaning of section 
        71(b)(2) of the Internal Revenue Code of 1986)--
                    (A) provides that the former spouse is entitled to 
                the survivor benefits under the contract;
                    (B) does not modify the treatment of the former 
                spouse as the beneficiary under the contract who is 
                entitled to the survivor benefits; or
                    (C) does not modify the treatment of the former 
                spouse as the measuring life for the survivor benefits 
                under the contract.
    (b) Effective Dates, Enforcement, and Interpretations.--
            (1) Effective dates.--
                    (A) Paragraphs (1) and (2) of subsection (a) shall 
                be effective with respect to contracts purchased or 
                received in an exchange on or after the date of 
                enactment of this Act.
                    (B) Paragraph (3) of subsection (a) shall be 
                effective with respect to contracts purchased or 
                received in an exchange on or after July 2, 2014.
            (2) Enforcement and interpretations.--Prior to the date 
        that the Secretary of the Treasury issues final regulations 
        pursuant to subsection (a)--
                    (A) the Secretary shall administer and enforce the 
                law in accordance with subsection (a) and the effective 
                dates in paragraph (1) of this subsection; and
                    (B) taxpayers may rely upon their reasonable good 
                faith interpretations of subsection (a).

SEC. 204. REMOVE REQUIRED MINIMUM DISTRIBUTION BARRIERS FOR LIFE 
              ANNUITIES.

    (a) In General.--Paragraph (9) of section 401(a) of the Internal 
Revenue Code of 1986, as amended by section 111 of this Act, is further 
amended by adding at the end the following new subparagraph:
                    ``(I) Certain increases in payments under a 
                commercial annuity.--Nothing in this section shall 
                prohibit a commercial annuity (within the meaning of 
                section 3405(e)(6)) that is issued in connection with 
                any eligible retirement plan (within the meaning of 
                section 402(c)(8)(B)) from providing one or more of the 
                following types of payments on or after the annuity 
                starting date:
                            ``(i) annuity payments that increase by a 
                        constant percentage, applied not less 
                        frequently than annually, at a rate that is 
                        less than 5 percent per year,
                            ``(ii) a lump sum payment that--
                                    ``(I) results in a shortening of 
                                the payment period with respect to an 
                                annuity or a full or partial 
                                commutation of the future annuity 
                                payments, provided that such lump sum 
                                is determined using reasonable 
                                actuarial methods and assumptions, as 
                                determined in good faith by the issuer 
                                of the contract, or
                                    ``(II) accelerates the receipt of 
                                annuity payments that are scheduled to 
                                be received within the ensuing 12 
                                months, regardless of whether such 
                                acceleration shortens the payment 
                                period with respect to the annuity, 
                                reduces the dollar amount of benefits 
                                to be paid under the contract, or 
                                results in a suspension of annuity 
                                payments during the period being 
                                accelerated,
                            ``(iii) an amount which is in the nature of 
                        a dividend or similar distribution, provided 
                        that the issuer of the contract determines such 
                        amount based on a reasonable comparison of the 
                        actuarial factors assumed when calculating the 
                        initial annuity payments and the issuer's 
                        experience with respect to those factors, or
                            ``(iv) a final payment upon death that does 
                        not exceed the excess of the total amount of 
                        the consideration paid for the annuity 
                        payments, less the aggregate amount of prior 
                        distributions or payments from or under the 
                        contract.''.
    (b) Regulations and Enforcement.--
            (1) Regulations.--By the date that is one year after the 
        date of enactment of this Act, the Secretary of the Treasury 
        shall amend the regulation issued by the Department of the 
        Treasury relating to ``Required Distributions from Retirement 
        Plans,'' 69 Fed. Reg. 33288 (June 15, 2004), and make any 
        corresponding amendments to other regulations, in order to--
                    (A) conform such regulations to subsection (a), 
                including by eliminating the types of payments 
                described in subsection (a) from the scope of the 
                requirement in Q&A-14(c) of 26 C.F.R. section 
                1.401(a)(9)-6 that the total future expected payments 
                must exceed the total value being annuitized;
                    (B) amend Q&A-14(c) of 26 C.F.R. section 
                1.401(a)(9)-6 to provide that a commercial annuity that 
                provides an initial payment that is at least equal to 
                the initial payment that would be required from an 
                individual account pursuant to 26 C.F.R. section 
                1.401(a)(9)-5 will be deemed to satisfy the requirement 
                in Q&A-14(c) of 26 C.F.R. section 1.401(a)(9)-6 that 
                the total future expected payments must exceed the 
                total value being annuitized; and
                    (C) amend Q&A-14(e)(3) of 26 C.F.R. section 
                1.401(a)(9)-6 to provide that the total future expected 
                payments under a commercial annuity are determined 
                using the tables or other actuarial assumptions that 
                the issuer of the contract actually uses in pricing the 
                premiums and benefits with respect to the contract, 
                provided that such tables or other actuarial 
                assumptions are reasonable.
            (2) Enforcement.--As of the date of enactment of this Act, 
        the Secretary of the Treasury shall administer and enforce the 
        law in accordance with subsections (a) and (b) with respect to 
        taxable 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.

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

SEC. 301. EXCEPTION FROM REQUIRED DISTRIBUTIONS WHERE AGGREGATE 
              RETIREMENT SAVINGS DO NOT EXCEED $250,000.

    (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
1986, as amedended by sections 111 and 204, is further amended by 
adding at the end the following new subparagraph:
                    ``(J) Exception from required minimum distributions 
                during life of employee or beneficiary where assets do 
                not exceed $250,000.--
                            ``(i) In general.--If, as of a measurement 
                        date, the aggregate value of the entire 
                        interest of an employee under all applicable 
                        eligible retirement plans does not exceed 
                        $250,000, then, during any succeeding calendar 
                        year beginning before the next measurement 
                        date--
                                    ``(I) the requirements of 
                                subparagraph (A) shall not apply to the 
                                employee, and
                                    ``(II) the requirements of 
                                subparagraph (B) shall not apply to the 
                                employee's designated beneficiary with 
                                respect to the designated beneficiary's 
                                interest in the interest 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 value 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 
                                employee is the last day of the 
                                calendar year preceding the earlier 
                                of--
                                            ``(aa) the calendar year in 
                                        which the employee attains the 
                                        applicable age, or
                                            ``(bb) the calendar year in 
                                        which the employee dies.
                                    ``(II) Subsequent measurement 
                                dates.--If, in a calendar year, an 
                                employee to whom subparagraph (A) or 
                                (B) does not apply by reason of 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 to such 
                                employee.
                            ``(v) Determination of value.--For purposes 
                        of this subparagraph--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the value 
                                of an employee's interest in a plan is 
                                the account balance of such plan.
                                    ``(II) Defined benefit plans.--The 
                                value of defined benefit plan benefits 
                                shall be 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-out of exception.--In the case 
                        of an employee whose aggregate balance 
                        described in clause (i) as of a measurement 
                        date exceeds the dollar amount in effect under 
                        such clause by less than $10,000, the required 
                        distributions under this paragraph for calendar 
                        years beginning after such measurement date and 
                        before the next measurement date shall be equal 
                        to the amount which bears the same ratio to the 
                        required distributions otherwise determined 
                        under this paragraph as--
                                    ``(I) the amount by which such 
                                aggregate balance exceeds such dollar 
                                amount so in effect, bears to
                                    ``(II) $10,000.
                            ``(vii) Cost of living adjustments.--The 
                        Secretary shall adjust annually the $250,000 
                        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, 2017, 
                        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, 2017.

SEC. 302. 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 2016-51 or any successor guidance) 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) 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.
    (d) 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.

SEC. 303. 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. 304. 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. 305. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

    (a) In General.--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.
    (b) Study.--Not later than December 31, 2018, the Secretary of 
Labor shall deliver a report to the House Committee on Ways and Means, 
the House Committee on Education and the Workforce, the Senate 
Committee on Finance, and the Senate Committee on Health, Education, 
Labor and Pensions regarding the effectiveness of the benchmarking 
requirements under 29 C.F.R. section 2550.404a-5.

SEC. 306. PERMIT NONSPOUSAL BENEFICIARIES TO ROLL ASSETS TO PLANS.

    (a) In General.--Section 402(c) of the Internal Revenue Code of 
1986 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. 307. ELIMINATE THE ``FIRST DAY OF THE MONTH'' REQUIREMENT.

    (a) In General.--Paragraph (4) of section 457(b) of the Internal 
Revenue Code of 1986 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.

SEC. 308. OFFICE OF PARTICIPANT AND PLAN SPONSOR ADVOCATE.

    (a) In General.--Section 7803 of the Internal Revenue Code of 1986 
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 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.--The Participant and Plan Sponsor 
                Advocate can only be removed from office or transferred 
                to another position or location within the Internal 
                Revenue Service by the Secretary of the Treasury. 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 
                Secretary 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, 2018.

SEC. 309. SIMPLIFYING 402(F) NOTICES.

    Not later than December 31, 2018, the Secretary of the Treasury, in 
consultation with the Secretary of Labor and the Director of the 
Pension Benefit Guaranty Corporation, shall simplify the model notices 
issued under section 402(f) of the Internal Revenue Code of 1986 so as 
to facilitate better understanding by recipients of different 
distribution options and corresponding tax consequences. Such model 
notices shall include an explanation of the effect of elections on 
spousal rights.

SEC. 310. GUIDANCE RELATED TO CERTAIN OVERPAYMENT RECOUPMENT PRACTICES.

    (a) Overpayments Under Internal Revenue Code.--Not later than 
December 31, 2018, the Secretary of the Treasury shall modify the 
Employee Plans Compliance Resolution System (as described in Revenue 
Procedure 2016-51 or any successor guidance)--
            (1) to clarify that in no case shall any person be required 
        to seek recoupment of an inadvertent overpayment (as defined in 
        such System) from a participant or beneficiary; and
            (2) in the case of an inadvertent overpayment, except as 
        otherwise provided by such Secretary based on the size of the 
        overpayment, a contribution of such overpayment that would 
        qualify as a rollover under section 402(c), 403(a)(4), 
        403(b)(8), or 457(e)(16) of the Internal Revenue Code of 1986 
        but for the fact that it is an overpayment, shall be treated as 
        a rollover contribution for all purposes under such Code.
    (b) Overpayments Under ERISA.--Not later than December 31, 2018, 
the Secretary of Labor shall prescribe rules under which no fiduciary 
of a plan shall have a duty under part 4 of title I of the Employee 
Retirement Income Security Act of 1974 to seek recoupment from a 
participant or beneficiary of an inadvertent overpayment (as defined in 
the Employee Plans Compliance Resolution System issued by the Secretary 
of the Treasury, as described in Revenue Procedure 2016-51 or any 
successor guidance), provided that such overpayment is paid back by the 
plan sponsor or other person.
    (c) Overpayments by PBGC.--Effective for overpayments made to a 
participant or beneficiary after December 31, 2018, the Pension Benefit 
Guaranty Corporations shall not recoup any such overpayment by reducing 
any future payments with respect to the same participant or beneficiary 
by more than 10 percent.

SEC. 311. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) STATUS.

    (a) Limitation of Annual Safe Harbor Notice to Matching 
Contribution Plans.--
            (1) In general.--Subparagraph (A) of section 401(k)(12) of 
        the Internal Revenue Code of 1986 is amended by striking ``if 
        such arrangement'' and all that follows and inserting ``if such 
        arrangement--
                            ``(i) meets the contribution requirements 
                        of subparagraph (B) and the notice requirements 
                        of subparagraph (D), or
                            ``(ii) meets the contribution requirements 
                        of subparagraph (C).''.
            (2) Automatic contribution arrangements.--Subparagraph (B) 
        of section 401(k)(13) of such Code is amended by striking 
        ``means'' and all that follows and inserting ``means a cash or 
        deferred arrangement--
                    ``(A) which is described in subparagraph (D)(i)(I) 
                and meets the applicable requirements of subparagraphs 
                (C) through (E), or
                    ``(B) which is described in subparagraph (D)(i)(II) 
                and meets the applicable requirements of subparagraphs 
                (C) and (D).''.
    (b) Nonelective Contributions.--Section 401(k)(12) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraph (F) as 
subparagraph (G), and by inserting after subparagraph (E) the following 
new subparagraph:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (C) shall apply to 
                        the arrangement for the plan year, but only if 
                        the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (B) or paragraph 
                        (13)(D)(i)(I) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph (C) 
                        which the employer is required to make under 
                        the arrangement for the plan year with respect 
                        to any employee is an amount equal to at least 
                        4 percent of the employee's compensation.''.
    (c) Automatic Contribution Arrangements.--Section 401(k)(13) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following :
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (D)(i)(II) shall 
                        apply to the arrangement for the plan year, but 
                        only if the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (D)(i)(I) or 
                        paragraph (12)(B) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph 
                        (D)(i)(II) which the employer is required to 
                        make under the arrangement for the plan year 
                        with respect to any employee is an amount equal 
                        to at least 4 percent of the employee's 
                        compensation.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2017.

SEC. 312. 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:
            ``(16) 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)(16) of 
the Internal Revenue Code of 1986 (as added by subsection (a)) before, 
on or after the date of enactment of this Act.

SEC. 313. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 
              403(B) PLANS.

    Not later than six months after the date of enactment of this Act, 
the Secretary of the Treasury shall issue guidance to provide that, if 
an employer terminates the plan under which amounts are contributed to 
a custodial account under subparagraph (A) of section 403(b)(7), the 
plan administrator or custodian may distribute an individual custodial 
account in kind to a participant or beneficiary of the plan and the 
distributed custodial account shall be maintained by the custodian on a 
tax-deferred basis as a section 403(b)(7) custodial account, similar to 
the treatment of fully-paid individual annuity contracts under Revenue 
Ruling 2011-7, until amounts are actually paid to the participant or 
beneficiary. The guidance shall provide further (i) that the section 
403(b)(7) status of the distributed custodial account is generally 
maintained if the custodial account thereafter adheres to the 
requirements of section 403(b) that are in effect at the time of the 
distribution of the account and (ii) that a custodial account would not 
be considered distributed to the participant or beneficiary if the 
employer has any material retained rights under the account (but the 
employer would not be treated as retaining material rights simply 
because the custodial account was originally opened under a group 
contract). Such guidance shall be retroactively effective for taxable 
years beginning after December 31, 2008.

                 TITLE IV--DEFINED BENEFIT PLAN REFORMS

SEC. 401. CASH BALANCE.

    (a) In General.--Section 414 of the Internal Revenue Code of 1986, 
as amended by this Act, is amended by adding at the end the following 
new subsection:
    ``(bb) Projected Interest Crediting Rate.--For purposes of this 
part, in the case of an applicable defined benefit plan that provides 
variable interest crediting rates, the interest crediting rate that is 
treated as in effect and as the projected interest crediting rate shall 
be a reasonable projection of such variable interest crediting rate, 
subject to a maximum of 6 percent.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to years beginning after the date of enactment of 
this Act.

SEC. 402. ALIGNING USE OF LOOKBACK MONTHS TO DETERMINE INTEREST RATES.

    The Secretary of the Treasury shall modify Treasury Regulation 
section 1.417(e)-1(d)(10)(ii) (or any successor provision) to provide 
that the same rule applicable to modifications of the time for 
determining the applicable interest rate shall apply to modifications 
of the time for determining any interest rate used by a plan to the 
extent that the use of such interest rate is permissible under section 
417(e)(3) of the Internal Revenue Code of 1986, provided that the 
regulations shall require that after any such modification of such time 
under a plan pursuant to this section, no further modifications of such 
time are to be permitted for five years with respect to such plan 
without the consent of the Secretary of the Treasury. As of the date of 
enactment of this Act, such regulation (or any successor provision) 
shall be deemed to be amended in such manner, so that this change in 
the regulations is deemed to have occurred.

SEC. 403. ALIGNING EMPLOYER PENSION CONTRIBUTION DUE DATE WITH 
              CORPORATE RETURN DUE DATE.

    (a) In General.--Paragraph (1) of section 430(j) of the Internal 
Revenue Code of 1986 is amended by striking ``8 \1/2\'' and inserting 
``9\1/2\''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after the date of enactment of this Act.

SEC. 404. CLARIFICATION OF THE ROLE OF THE PARTICIPANT AND PLAN SPONSOR 
              ADVOCATE.

    Section 4004 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1304) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``a liaison'' and 
                inserting ``an independent liaison''; and
                    (B) in paragraph (3), by striking ``assist'' and 
                inserting ``advocate for'';
            (2) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (3) by inserting after subsection (b) the following:
    ``(c) Requests for Information.--The corporation shall, upon 
request, provide information to the Participant and Plan Sponsor 
Advocate to the extent necessary to enable the Participant and Plan 
Sponsor Advocate to perform the responsibilities described under this 
section.''.
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