II 

115TH CONGRESS 

2D SESSION S. 2526 

To amend the Internal Revenue Code of 1986 to encourage retirement 

savings, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2018 

Mr. HATCH (for himself and Mr. WYDEN) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

retirement savings, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Retirement Enhancement and Savings Act of 2018’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 

Sec. 101. Multiple employer plans. 

Sec. 102. Pooled employer and multiple employer plan reporting. 


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Sec. 103. Removal of 10 percent cap from automatic enrollment safe harbor 

after 1st plan year. 

Sec. 104. Rules relating to election of safe harbor 401(k) status. 

Sec. 105. Increase in credit limitation for small employer pension plan startup 

costs. 

Sec. 106. Small employer automatic enrollment credit. 

Sec. 107. Certain taxable non-tuition fellowship and stipend payments treated 

as compensation for IRA purposes. 

Sec. 108. Repeal of maximum age for traditional IRA contributions. 

Sec. 109. Expansion of IRA ownership of S corporation bank stock. 

Sec. 110. Qualified employer plans prohibited from making loans through credit 

cards and other similar arrangements. 

Sec. 111. Portability of lifetime income options. 

Sec. 112. Treatment of custodial accounts on termination of section 403(b) 

plans. 

Sec. 113. Clarification of retirement income account rules relating to churchcontrolled organizations. 

TITLE II—ADMINISTRATIVE IMPROVEMENTS 

Sec. 201. Plan adopted by filing due date for year may be treated as in effect 

as of close of year. 

Sec. 202. Combined annual report for group of plans. 

Sec. 203. Disclosure regarding lifetime income. 

Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 

Sec. 205. Modification of nondiscrimination rules to protect older, longer service participants. 

Sec. 206. Modification of PBGC premiums for CSEC plans. 

TITLE III—BENEFITS RELATING TO UNITED STATES TAX COURT 

Sec. 301. Thrift Savings Plan contributions for judges in the Federal Employees Retirement System. 

Sec. 302. Change in vesting period for survivor annuities and waiver of vesting 

period in the event of assassination. 

Sec. 303. Coordination of retirement and survivor annuity with the Federal 

Employees Retirement System. 

Sec. 304. Limit on teaching compensation of retired judges. 

Sec. 305. General provisions relating to magistrate judges of the Tax Court. 

Sec. 306. Life insurance for magistrate judges of the tax court age 65 or older. 

Sec. 307. Retirement and annuity program. 

Sec. 308. Provisions for recall. 

TITLE IV—OTHER BENEFITS 

Sec. 401. Benefits provided to volunteer firefighters and emergency medical responders. 

TITLE V—REVENUE PROVISIONS 

Sec. 501. Modifications of required distribution rules for pension plans. 

Sec. 502. Increase in penalty for failure to file. 

Sec. 503. Increased penalties for failure to file retirement plan returns. 

Sec. 504. Increase information sharing to administer excise taxes. 

Sec. 505. Pension variable rate premium payment acceleration. 


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1 TITLE I—EXPANDING AND PRE2 SERVING RETIREMENT SAV3 INGS 

4 SEC. 101. MULTIPLE EMPLOYER PLANS. 

5 (a) QUALIFICATION REQUIREMENTS.— 

6 (1) IN GENERAL.—Section 413 of the Internal 

7 Revenue Code of 1986 is amended by adding at the 

8 end the following new subsection: 

9 ‘‘(e) APPLICATION OF QUALIFICATION REQUIRE10 MENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH

11 POOLED PLAN PROVIDERS.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), if a defined contribution plan to which 

14 subsection (c) applies— 

15 ‘‘(A) is sponsored by employers all of 

16 which have both a common interest other than 

17 having adopted the plan and control of the 

18 plan, or 

19 ‘‘(B) in the case of a plan not described in 

20 subparagraph (A), has a pooled plan provider, 

21 then the plan shall not be treated as failing to meet 

22 the requirements under this title applicable to a plan 

23 described in section 401(a) or to a plan that consists 

24 of individual retirement accounts described in sec25 tion 408 (including by reason of subsection (c) 


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1 thereof), whichever is applicable, merely because one 

2 or more employers of employees covered by the plan 

3 fail to take such actions as are required of such em4 ployers for the plan to meet such requirements. 

5 ‘‘(2) LIMITATIONS.— 

6 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

7 not apply to any plan unless the terms of the 

8 plan provide that in cases of employers failing 

9 to take the actions described in paragraph 

10 (1)— 

11 ‘‘(i) the assets of the plan attributable 

12 to employees of the employer will be trans13 ferred to a plan maintained only by the 

14 employer (or its successor), to an eligible 

15 retirement plan as defined in section 

16 402(c)(8)(B) for each individual whose ac17 count is transferred, or to any other ar18 rangement that the Secretary determines is 

19 appropriate, unless the Secretary deter20 mines it is in the best interests of such em21 ployees to retain the assets in the plan, 

22 and 

23 ‘‘(ii) the employer described in clause 

24 (i) (and not the plan with respect to which 

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1 pating employer in such plan) shall, except 

2 to the extent provided by the Secretary, be 

3 liable for any liabilities with respect to 

4 such plan attributable to employees of the 

5 employer. 

6 ‘‘(B) FAILURES BY POOLED PLAN PRO7 VIDERS.—If the pooled plan provider of a plan 

8 described in paragraph (1)(B) does not perform 

9 substantially all of the administrative duties 

10 which are required of the provider under para11 graph (3)(A)(i) for any plan year, the Sec12 retary, in the Secretary’s own discretion, may 

13 provide that the determination as to whether 

14 the plan meets the requirements under this title 

15 applicable to a plan described in section 401(a) 

16 or to a plan that consists of individual retire17 ment accounts described in section 408 (includ18 ing by reason of subsection (c) thereof), which19 ever is applicable, shall be made in the same 

20 manner as would be made without regard to 

21 paragraph (1). 

22 ‘‘(3) POOLED PLAN PROVIDER.—For purposes 

23 of this subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

2 provider’ means, with respect to any plan, a 

3 person who— 

4 ‘‘(i) is designated by the terms of the 

5 plan as a named fiduciary (within the 

6 meaning of section 402(a)(2) of the Em7 ployee Retirement Income Security Act of 

8 1974), as the plan administrator, and as 

9 the person responsible to perform all ad10 ministrative duties (including conducting 

11 proper testing with respect to the plan and 

12 employees of each participating employer) 

13 which are reasonably necessary to ensure 

14 that— 

15 ‘‘(I) the plan meets any require16 ment applicable under the Employee 

17 Retirement Income Security Act of 

18 1974 or this title to a plan described 

19 in section 401(a) or to a plan that 

20 consists of individual retirement ac21 counts described in section 408 (in22 cluding by reason of subsection (c) 

23 thereof), whichever is applicable, and 

24 ‘‘(II) each participating employer 

25 takes such actions as the Secretary or 


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1 such person determines are necessary 

2 for the plan to meet the requirements 

3 described in subclause (I), including 

4 providing to such person any disclo5 sures or other information which the 

6 Secretary may require or which such 

7 person otherwise determines is nec8 essary to administer the plan or to 

9 allow the plan to meet such require10 ments, 

11 ‘‘(ii) registers as a pooled plan pro12 vider with the Secretary, and provides such 

13 other information to the Secretary as the 

14 Secretary may require, before beginning 

15 operations as a pooled plan provider, 

16 ‘‘(iii) acknowledges in writing that 

17 such person is a named fiduciary (within 

18 the meaning of section 402(a)(2) of the 

19 Employee Retirement Income Security Act 

20 of 1974), and the plan administrator, with 

21 respect to the plan, and 

22 ‘‘(iv) is responsible for ensuring that 

23 all persons who handle assets of, or who 

24 are fiduciaries of, the plan are bonded in 

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1 ployee Retirement Income Security Act of 

2 1974. 

3 ‘‘(B) AUDITS, EXAMINATIONS AND INVES4 TIGATIONS.—The Secretary may perform au5 dits, examinations, and investigations of pooled 

6 plan providers as may be necessary to enforce 

7 and carry out the purposes of this subsection. 

8 ‘‘(4) GUIDANCE.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall 

10 issue such guidance as the Secretary determines 

11 appropriate to carry out this subsection, includ12 ing guidance— 

13 ‘‘(i) to identify the administrative du14 ties and other actions required to be per15 formed by a pooled plan provider under 

16 this subsection, 

17 ‘‘(ii) which describes the procedures to 

18 be taken to terminate a plan which fails to 

19 meet the requirements to be a plan de20 scribed in paragraph (1), including the 

21 proper treatment of, and actions needed to 

22 be taken by, any participating employer of 

23 the plan and the assets and liabilities of 

24 the plan with respect to employees of that 

25 employer, and 


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1 ‘‘(iii) identifying appropriate cases to 

2 which the rules of paragraph (2)(A) will 

3 apply to employers failing to take the ac4 tions described in paragraph (1). 

5 The Secretary shall take into account under 

6 clause (iii) whether the failure of an employer 

7 or pooled plan provider to provide any disclo8 sures or other information, or to take any other 

9 action, necessary to administer a plan or to 

10 allow a plan to meet requirements applicable to 

11 the plan under section 401(a) or 408, whichever 

12 is applicable, has continued over a period of 

13 time that clearly demonstrates a lack of com14 mitment to compliance. 

15 ‘‘(B) PROSPECTIVE APPLICATION.—Any 

16 guidance issued by the Secretary under this 

17 paragraph shall not apply to any action or fail18 ure occurring before the issuance of such guid19 ance. 

20 ‘‘(5) MODEL PLAN.—The Secretary shall, in 

21 consultation with the Secretary of Labor when ap22 propriate, publish model plan language which meets 

23 the requirements of this subsection and of para24 graphs (43) and (44) of section 3 of the Employee 

25 Retirement Income Security Act of 1974 and which 


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1 may be adopted in order for a plan to be treated as 

2 a plan described in paragraph (1)(B).’’. 

3 (2) CONFORMING AMENDMENT.—Paragraph (3) 

4 of section 413(b) of such Code is amended by strik5 ing ‘‘section 401(a)’’ and inserting ‘‘sections 401(a) 

6 and 408(c)’’. 

7 (3) TECHNICAL AMENDMENT.—Subsection (c) 

8 of section 408 of such Code is amended by inserting 

9 after paragraph (2) the following new paragraph: 

10 ‘‘(3) There is a separate accounting for any in11 terest of an employee or member (or spouse of an 

12 employee or member) in a Roth IRA.’’. 

13 (b) NO COMMON INTEREST REQUIRED FOR POOLED

14 EMPLOYER PLANS.—Section 3(2) of the Employee Retire15 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) 

16 is amended by adding at the end the following: 

17 ‘‘(C) A pooled employer plan shall be treat18 ed as— 

19 ‘‘(i) a single employee pension benefit 

20 plan or single pension plan; and 

21 ‘‘(ii) a plan to which section 210(a) 

22 applies.’’. 

23 (c) POOLED EMPLOYER PLAN AND PROVIDER DE24 FINED.— 


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1 (1) IN GENERAL.—Section 3 of the Employee 

2 Retirement Income Security Act of 1974 (29 U.S.C. 

3 1002) is amended by adding at the end the fol4 lowing: 

5 ‘‘(43) POOLED EMPLOYER PLAN.— 

6 ‘‘(A) IN GENERAL.—The term ‘pooled em7 ployer plan’ means a plan— 

8 ‘‘(i) which is an individual account 

9 plan established or maintained for the pur10 pose of providing benefits to the employees 

11 of two or more employers; 

12 ‘‘(ii) which is a plan described in sec13 tion 401(a) of the Internal Revenue Code 

14 of 1986 which includes a trust exempt 

15 from tax under section 501(a) of such 

16 Code or a plan that consists of individual 

17 retirement accounts described in section 

18 408 of such Code (including by reason of 

19 subsection (c) thereof); and 

20 ‘‘(iii) the terms of which meet the re21 quirements of subparagraph (B). 

22 Such term shall not include a plan with respect 

23 to which all of the participating employers have 

24 both a common interest other than having 

25 adopted the plan and control of the plan. 


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1 ‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 

2 The requirements of this subparagraph are met 

3 with respect to any plan if the terms of the 

4 plan— 

5 ‘‘(i) designate a pooled plan provider 

6 and provide that the pooled plan provider 

7 is a named fiduciary of the plan; 

8 ‘‘(ii) designate one or more trustees 

9 meeting the requirements of section 

10 408(a)(2) of the Internal Revenue Code of 

11 1986 (other than a participating employer) 

12 to be responsible for collecting contribu13 tions to, and holding the assets of, the 

14 plan and require such trustees to imple15 ment written contribution collection proce16 dures that are reasonable, diligent, and 

17 systematic; 

18 ‘‘(iii) provide that each participating 

19 employer retains fiduciary responsibility 

20 for— 

21 ‘‘(I) the selection and monitoring 

22 in accordance with section 404(a) of 

23 the person designated as the pooled 

24 plan provider and any other person 

25 who, in addition to the pooled plan 


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1 provider, is designated as a named fi2 duciary of the plan; and 

3 ‘‘(II) to the extent not otherwise 

4 delegated to another fiduciary by the 

5 pooled plan provider and subject to 

6 the provisions of section 404(c), the 

7 investment and management of that 

8 portion of the plan’s assets attrib9 utable to the employees of that par10 ticipating employer; 

11 ‘‘(iv) provide that a participating em12 ployer, or a participant or beneficiary, is 

13 not subject to unreasonable restrictions, 

14 fees, or penalties with regard to ceasing 

15 participation, receipt of distributions, or 

16 otherwise transferring assets of the plan in 

17 accordance with section 208 or paragraph 

18 (44)(C)(i)(II); 

19 ‘‘(v) require— 

20 ‘‘(I) the pooled plan provider to 

21 provide to participating employers any 

22 disclosures or other information which 

23 the Secretary may require, including 

24 any disclosures or other information 

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1 toring of the pooled plan provider by 

2 participating employers; and 

3 ‘‘(II) each participating employer 

4 to take such actions as the Secretary 

5 or the pooled plan provider determines 

6 are necessary to administer the plan 

7 or for the plan to meet any require8 ment applicable under this Act or the 

9 Internal Revenue Code of 1986 to a 

10 plan described in section 401(a) of 

11 such Code or to a plan that consists 

12 of individual retirement accounts de13 scribed in section 408 of such Code 

14 (including by reason of subsection (c) 

15 thereof), whichever is applicable, in16 cluding providing any disclosures or 

17 other information which the Secretary 

18 may require or which the pooled plan 

19 provider otherwise determines is nec20 essary to administer the plan or to 

21 allow the plan to meet such require22 ments; and 

23 ‘‘(vi) provide that any disclosure or 

24 other information required to be provided 

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1 tronic form and will be designed to ensure 

2 only reasonable costs are imposed on 

3 pooled plan providers and participating 

4 employers. 

5 ‘‘(C) EXCEPTIONS.—The term ‘pooled em6 ployer plan’ does not include— 

7 ‘‘(i) a multiemployer plan; or 

8 ‘‘(ii) a plan established before the 

9 date of the enactment of the Retirement 

10 Enhancement and Savings Act of 2018, 

11 unless the plan administrator elects that 

12 the plan will be treated as a pooled em13 ployer plan and the plan meets the require14 ments of this title applicable to a pooled 

15 employer plan established on or after such 

16 date. 

17 ‘‘(44) POOLED PLAN PROVIDER.— 

18 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

19 provider’ means a person who— 

20 ‘‘(i) is designated by the terms of a 

21 pooled employer plan as a named fiduciary, 

22 as the plan administrator, and as the per23 son responsible for the performance of all 

24 administrative duties (including conducting 

25 proper testing with respect to the plan and 


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1 employees of each participating employer) 

2 which are reasonably necessary to ensure 

3 that— 

4 ‘‘(I) the plan meets any require5 ment applicable under this Act or the 

6 Internal Revenue Code of 1986 to a 

7 plan described in section 401(a) of 

8 such Code or to a plan that consists 

9 of individual retirement accounts de10 scribed in section 408 of such Code 

11 (including by reason of subsection (c) 

12 thereof), whichever is applicable; and 

13 ‘‘(II) each participating employer 

14 takes such actions as the Secretary or 

15 pooled plan provider determines are 

16 necessary for the plan to meet the re17 quirements described in subclause (I), 

18 including providing the disclosures 

19 and information described in para20 graph (43)(B)(v)(II); 

21 ‘‘(ii) registers as a pooled plan pro22 vider with the Secretary, and provides to 

23 the Secretary such other information as 

24 the Secretary may require, before begin25 ning operations as a pooled plan provider; 


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1 ‘‘(iii) acknowledges in writing that 

2 such person is a named fiduciary, and the 

3 plan administrator, with respect to the 

4 pooled employer plan; and 

5 ‘‘(iv) is responsible for ensuring that 

6 all persons who handle assets of, or who 

7 are fiduciaries of, the pooled employer plan 

8 are bonded in accordance with section 412. 

9 ‘‘(B) AUDITS, EXAMINATIONS AND INVES10 TIGATIONS.—The Secretary may perform au11 dits, examinations, and investigations of pooled 

12 plan providers as may be necessary to enforce 

13 and carry out the purposes of this paragraph 

14 and paragraph (43). 

15 ‘‘(C) GUIDANCE.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall issue such guidance as the Secretary 

18 determines appropriate to carry out this 

19 paragraph and paragraph (43), including 

20 guidance— 

21 ‘‘(I) to identify the administra22 tive duties and other actions required 

23 to be performed by a pooled plan pro24 vider under either such paragraph; 

25 and 


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1 ‘‘(II) which requires in appro2 priate cases that if a participating 

3 employer fails to take the actions re4 quired under subparagraph 

5 (A)(i)(II)— 

6 ‘‘(aa) the assets of the plan 

7 attributable to employees of the 

8 participating employer are trans9 ferred to a plan maintained only 

10 by the participating employer (or 

11 its successor), to an eligible re12 tirement plan as defined in sec13 tion 402(c)(8)(B) of the Internal 

14 Revenue Code of 1986 for each 

15 individual whose account is 

16 transferred, or to any other ar17 rangement that the Secretary de18 termines is appropriate in such 

19 guidance; and 

20 ‘‘(bb) the participating em21 ployer described in item (aa) 

22 (and not the plan with respect to 

23 which the failure occurred or any 

24 other participating employer in 

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1 tent provided in such guidance, 

2 be liable for any liabilities with 

3 respect to such plan attributable 

4 to employees of the participating 

5 employer. 

6 The Secretary shall take into account 

7 under subclause (II) whether the failure of 

8 an employer or pooled plan provider to 

9 provide any disclosures or other informa10 tion, or to take any other action, necessary 

11 to administer a plan or to allow a plan to 

12 meet requirements described in subpara13 graph (A)(i)(II) has continued over a pe14 riod of time that clearly demonstrates a 

15 lack of commitment to compliance. The 

16 Secretary may waive the requirements of 

17 subclause (II)(aa) in appropriate cir18 cumstances if the Secretary determines it 

19 is in the best interests of the employees of 

20 the participating employer described in 

21 such clause to retain the assets in the plan 

22 with respect to which the employer’s fail23 ure occurred. 

24 ‘‘(ii) PROSPECTIVE APPLICATION.— 

25 Any guidance issued by the Secretary 


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1 under this subparagraph shall not apply to 

2 any action or failure occurring before the 

3 issuance of such guidance. 

4 ‘‘(D) AGGREGATION RULES.—For purposes 

5 of this paragraph— 

6 ‘‘(i) IN GENERAL.—In determining 

7 whether a person meets the requirements 

8 of this paragraph to be a pooled plan pro9 vider with respect to any plan, all persons 

10 who are members of the same controlled 

11 group and who perform services for the 

12 plan shall be treated as one person. 

13 ‘‘(ii) MEMBERS OF COMMON GROUP.— 

14 Persons shall be treated as members of the 

15 same controlled group if such persons are 

16 treated as a single employer under sub17 section (c) or (d) of section 210.’’. 

18 (2) BONDING REQUIREMENTS FOR POOLED EM19 PLOYER PLANS.—The last sentence of section 412(a) 

20 of the Employee Retirement Income Security Act of 

21 1974 (29 U.S.C. 1112(a)) is amended by inserting 

22 ‘‘or in the case of a pooled employer plan (as defined 

23 in section 3(43))’’ after ‘‘section 407(d)(1))’’. 

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1 come Security Act of 1974 (29 U.S.C. 1002) is 

2 amended— 

3 (A) in paragraph (16)(B)— 

4 (i) by striking ‘‘or’’ at the end of 

5 clause (ii); and 

6 (ii) by striking the period at the end 

7 and inserting ‘‘, or (iv) in the case of a 

8 pooled employer plan, the pooled plan pro9 vider.’’; and 

10 (B) by striking the second paragraph (41). 

11 (d) EFFECTIVE DATE.— 

12 (1) IN GENERAL.—The amendments made by 

13 this section shall apply to years beginning after De14 cember 31, 2021. 

15 (2) RULE OF CONSTRUCTION.—Nothing in the 

16 amendments made by subsection (a) shall be con17 strued as limiting the authority of the Secretary of 

18 the Treasury or the Secretary’s delegate (determined 

19 without regard to such amendment) to provide for 

20 the proper treatment of a failure to meet any re21 quirement applicable under the Internal Revenue 

22 Code of 1986 with respect to one employer (and its 

23 employees) in a multiple employer plan. 


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1 SEC. 102. POOLED EMPLOYER AND MULTIPLE EMPLOYER 

2 PLAN REPORTING. 

3 (a) ADDITIONAL INFORMATION.—Section 103 of the 

4 Employee Retirement Income Security Act of 1974 (29 

5 U.S.C. 1023) is amended— 

6 (1) in subsection (a)(1)(B), by striking ‘‘appli7 cable subsections (d), (e), and (f)’’ and inserting 

8 ‘‘applicable subsections (d), (e), (f), and (g)’’; and 

9 (2) by amending subsection (g) to read as fol10 lows: 

11 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

12 POOLED EMPLOYER AND MULTIPLE EMPLOYER

13 PLANS.—An annual report under this section for a plan 

14 year shall include— 

15 ‘‘(1) with respect to any plan to which section 

16 210(a) applies (including a pooled employer plan), a 

17 list of participating employers and a good faith esti18 mate of the percentage of total contributions made 

19 by such participating employers during the plan 

20 year; and 

21 ‘‘(2) with respect to a pooled employer plan, the 

22 identifying information for the person designated 

23 under the terms of the plan as the pooled plan pro24 vider.’’. 

25 (b) SIMPLIFIED ANNUAL REPORTS.—Section 104(a) 

26 of the Employee Retirement Income Security Act of 1974 


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1 (29 U.S.C. 1024(a)) is amended by striking paragraph 

2 (2)(A) and inserting the following: 

3 ‘‘(2)(A) With respect to annual reports required 

4 to be filed with the Secretary under this part, the 

5 Secretary may by regulation prescribe simplified an6 nual reports for any pension plan that— 

7 ‘‘(i) covers fewer than 100 participants; or 

8 ‘‘(ii) is a plan described in section 210(a) 

9 that covers fewer than 1,000 participants, but 

10 only if no single participating employer has 100 

11 or more participants covered by the plan.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to annual reports for plan years 

14 beginning after December 31, 2021. 

15 SEC. 103. REMOVAL OF 10 PERCENT CAP FROM AUTOMATIC 

16 ENROLLMENT SAFE HARBOR AFTER 1ST 

17 PLAN YEAR. 

18 (a) IN GENERAL.—Clause (iii) of section 

19 401(k)(13)(C) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘, does not exceed 10 percent, and 

21 is at least’’ and inserting ‘‘and is’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Subclause (I) of section 401(k)(13)(C)(iii) 

24 of the Internal Revenue Code of 1986 is amended by 


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1 striking ‘‘3 percent’’ and inserting ‘‘at least 3 per2 cent, but not greater than 10 percent,’’. 

3 (2) Subclause (II) of section 401(k)(13)(C)(iii) 

4 of such Code is amended by striking ‘‘4 percent’’ 

5 and inserting ‘‘at least 4 percent’’. 

6 (3) Subclause (III) of section 401(k)(13)(C)(iii) 

7 of such Code is amended by striking ‘‘5 percent’’ 

8 and inserting ‘‘at least 5 percent’’. 

9 (4) Subclause (IV) of section 401(k)(13)(C)(iii) 

10 of such Code is amended by striking ‘‘6 percent’’ 

11 and inserting ‘‘at least 6 percent’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to plan years beginning after De14 cember 31, 2018. 

15 SEC. 104. RULES RELATING TO ELECTION OF SAFE HARBOR 

16 401(k) STATUS. 

17 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE

18 TO MATCHING CONTRIBUTION PLANS.— 

19 (1) IN GENERAL.—Subparagraph (A) of section 

20 401(k)(12) of the Internal Revenue Code of 1986 is 

21 amended by striking ‘‘if such arrangement’’ and all 

22 that follows and inserting ‘‘if such arrangement— 

23 ‘‘(i) meets the contribution require24 ments of subparagraph (B) and the notice 

25 requirements of subparagraph (D), or 


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1 ‘‘(ii) meets the contribution require2 ments of subparagraph (C).’’. 

3 (2) AUTOMATIC CONTRIBUTION ARRANGE4 MENTS.—Subparagraph (B) of section 401(k)(13) of 

5 such Code is amended by striking ‘‘means’’ and all 

6 that follows and inserting ‘‘means a cash or deferred 

7 arrangement— 

8 ‘‘(A) which is described in subparagraph 

9 (D)(i)(I) and meets the applicable requirements 

10 of subparagraphs (C) through (E), or 

11 ‘‘(B) which is described in subparagraph 

12 (D)(i)(II) and meets the applicable require13 ments of subparagraphs (C) and (D).’’. 

14 (b) NONELECTIVE CONTRIBUTIONS.—Section 

15 401(k)(12) of the Internal Revenue Code of 1986 is 

16 amended by redesignating subparagraph (F) as subpara17 graph (G), and by inserting after subparagraph (E) the 

18 following new subparagraph: 

19 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

20 EMPLOYER MAKING NONELECTIVE CONTRIBU21 TIONS.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), a plan may be amend24 ed after the beginning of a plan year to 

25 provide that the requirements of subparaVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 graph (C) shall apply to the arrangement 

2 for the plan year, but only if the amend3 ment is adopted— 

4 ‘‘(I) at any time before the 30th 

5 day before the close of the plan year, 

6 or 

7 ‘‘(II) at any time before the last 

8 day under paragraph (8)(A) for dis9 tributing excess contributions for the 

10 plan year. 

11 ‘‘(ii) EXCEPTION WHERE PLAN PRO12 VIDED FOR MATCHING CONTRIBUTIONS.— 

13 Clause (i) shall not apply to any plan year 

14 if the plan provided at any time during the 

15 plan year that the requirements of sub16 paragraph (B) or paragraph (13)(D)(i)(I) 

17 applied to the plan year. 

18 ‘‘(iii) 4-PERCENT CONTRIBUTION RE19 QUIREMENT.—Clause (i)(II) shall not 

20 apply to an arrangement unless the 

21 amount of the contributions described in 

22 subparagraph (C) which the employer is 

23 required to make under the arrangement 

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1 ployee is an amount equal to at least 4 

2 percent of the employee’s compensation.’’. 

3 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

4 Section 401(k)(13) of the Internal Revenue Code of 1986 

5 is amended by adding at the end the following : 

6 ‘‘(F) TIMING OF PLAN AMENDMENT FOR

7 EMPLOYER MAKING NONELECTIVE CONTRIBU8 TIONS.— 

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii), a plan may be amend11 ed after the beginning of a plan year to 

12 provide that the requirements of subpara13 graph (D)(i)(II) shall apply to the arrange14 ment for the plan year, but only if the 

15 amendment is adopted— 

16 ‘‘(I) at any time before the 30th 

17 day before the close of the plan year, 

18 or 

19 ‘‘(II) at any time before the last 

20 day under paragraph (8)(A) for dis21 tributing excess contributions for the 

22 plan year. 

23 ‘‘(ii) EXCEPTION WHERE PLAN PRO24 VIDED FOR MATCHING CONTRIBUTIONS.— 

25 Clause (i) shall not apply to any plan year 


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1 if the plan provided at any time during the 

2 plan year that the requirements of sub3 paragraph (D)(i)(I) or paragraph (12)(B) 

4 applied to the plan year. 

5 ‘‘(iii) 4-PERCENT CONTRIBUTION RE6 QUIREMENT.—Clause (i)(II) shall not 

7 apply to an arrangement unless the 

8 amount of the contributions described in 

9 subparagraph (D)(i)(II) which the em10 ployer is required to make under the ar11 rangement for the plan year with respect 

12 to any employee is an amount equal to at 

13 least 4 percent of the employee’s com14 pensation.’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to plan years beginning after De17 cember 31, 2018. 

18 SEC. 105. INCREASE IN CREDIT LIMITATION FOR SMALL 

19 EMPLOYER PENSION PLAN STARTUP COSTS. 

20 (a) IN GENERAL.—Paragraph (1) of section 45E(b) 

21 of the Internal Revenue Code of 1986 is amended to read 

22 as follows: 

23 ‘‘(1) for the first credit year and each of the 2 

24 taxable years immediately following the first credit 

25 year, the greater of— 


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1 ‘‘(A) $500, or 

2 ‘‘(B) the lesser of— 

3 ‘‘(i) $250 for each employee of the eli4 gible employer who is not a highly com5 pensated employee (as defined in section 

6 414(q)) and who is eligible to participate 

7 in the eligible employer plan maintained by 

8 the eligible employer, or 

9 ‘‘(ii) $5,000, and’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2018. 

13 SEC. 106. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

14 CREDIT. 

15 (a) IN GENERAL.—Subpart D of part IV of sub16 chapter A of chapter 1 of the Internal Revenue Code of 

17 1986 is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 45S. AUTO-ENROLLMENT OPTION FOR RETIREMENT 

20 SAVINGS OPTIONS PROVIDED BY SMALL EM21 PLOYERS. 

22 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

23 the case of an eligible employer, the retirement auto-en24 rollment credit determined under this section for any tax25 able year is an amount equal to— 


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1 ‘‘(1) $500 for any taxable year occurring during 

2 the credit period, and 

3 ‘‘(2) zero for any other taxable year. 

4 ‘‘(b) CREDIT PERIOD.—For purposes of subsection 

5 (a)— 

6 ‘‘(1) IN GENERAL.—The credit period with re7 spect to any eligible employer is the 3-taxable-year 

8 period beginning with the first taxable year for 

9 which the employer includes an eligible automatic 

10 contribution arrangement (as defined in section 

11 414(w)(3)) in a qualified employer plan (as defined 

12 in section 4972(d)) sponsored by the employer. 

13 ‘‘(2) MAINTENANCE OF ARRANGEMENT.—No 

14 taxable year with respect to an employer shall be 

15 treated as occurring within the credit period unless 

16 the arrangement described in paragraph (1) is in17 cluded in the plan for such year. 

18 ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 

19 section, the term ‘eligible employer’ has the meaning given 

20 such term in section 408(p)(2)(C)(i).’’. 

21 (b) CREDIT TO BE PART OF GENERAL BUSINESS

22 CREDIT.—Subsection (b) of section 38 of the Internal 

23 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

24 the end of paragraph (35), by striking the period at the 


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1 end of paragraph (36) and inserting ‘‘, plus’’, and by add2 ing at the end the following new paragraph: 

3 ‘‘(37) in the case of an eligible employer (as de4 fined in section 45S(c)), the retirement auto-enroll5 ment credit determined under section 45S(a).’’. 

6 (c) CLERICAL AMENDMENT.—The table of sections 

7 for subpart D of part IV of subchapter A of chapter 1 

8 of the Internal Revenue Code of 1986 is amended by in9 serting after the item relating to section 45R the following 

10 new item: 

‘‘Sec. 45S. Auto-enrollment option for retirement savings options provided by 

small employers.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2018. 

14 SEC. 107. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

15 AND STIPEND PAYMENTS TREATED AS COM16 PENSATION FOR IRA PURPOSES. 

17 (a) IN GENERAL.—Paragraph (1) of section 219(f) 

18 of the Internal Revenue Code of 1986 is amended by add19 ing at the end the following: ‘‘The term ‘compensation’ 

20 shall include any amount paid to an individual to aid the 

21 individual in the pursuit of graduate or postdoctoral 

22 study.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2018. 

4 SEC. 108. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 

5 CONTRIBUTIONS. 

6 (a) IN GENERAL.—Paragraph (1) of section 219(d) 

7 of the Internal Revenue Code of 1986 is repealed. 

8 (b) CONFORMING AMENDMENT.—Subsection (c) of 

9 section 408A of the Internal Revenue Code of 1986 is 

10 amended by striking paragraph (4) and by redesignating 

11 paragraphs (5), (6), and (7) as paragraphs (4), (5), and 

12 (6), respectively. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to contributions made for taxable 

15 years beginning after December 31, 2018. 

16 SEC. 109. EXPANSION OF IRA OWNERSHIP OF S CORPORA17 TION BANK STOCK. 

18 (a) IN GENERAL.—Section 1361(c)(2)(A)(vi) of the 

19 Internal Revenue Code of 1986 is amended by striking ‘‘, 

20 but only to the extent of the stock held by such trust in 

21 such bank or company as of the date of the enactment 

22 of this clause’’. 

23 (b) SALE OF STOCK IN IRA RELATING TO S COR24 PORATION ELECTION EXEMPT FROM PROHIBITED

25 TRANSACTION RULES.—Section 4975(d)(16) of the InterVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 nal Revenue Code of 1986 is amended by striking sub2 paragraph (B) and by redesignating subparagraphs (C), 

3 (D), (E), and (F) as subparagraphs (B), (C), (D) and (E), 

4 respectively. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall take effect on January 1, 2018. 

7 SEC. 110. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

8 MAKING LOANS THROUGH CREDIT CARDS 

9 AND OTHER SIMILAR ARRANGEMENTS. 

10 (a) IN GENERAL.—Paragraph (2) of section 72(p) of 

11 the Internal Revenue Code of 1986 is amended by redesig12 nating subparagraph (D) as subparagraph (E) and by in13 serting after subparagraph (C) the following new subpara14 graph: 

15 ‘‘(D) PROHIBITION OF LOANS THROUGH

16 CREDIT CARDS AND OTHER SIMILAR ARRANGE17 MENTS.— 

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in clause (ii), subparagraph (A) shall 

20 not apply to any loan which is made 

21 through the use of any credit card or any 

22 other similar arrangement. 

23 ‘‘(ii) EXCEPTION FOR EXISTING CRED24 IT CARD SYSTEMS.—Clause (i) shall not 

25 apply to any loan to the extent such loan 


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1 is provided through an electronic card sys2 tem which, as of September 21, 2016, was 

3 available for use to provide loans under 

4 qualified employer plans. 

5 ‘‘(iii) DISALLOWED TRANSACTIONS.— 

6 If any card through which a loan is pro7 vided under the exception of clause (ii) is 

8 used for any transaction— 

9 ‘‘(I) in an amount equal to or 

10 less than $1,000, or 

11 ‘‘(II) with or on the premises of 

12 any establishment described in clause 

13 (i), (ii), or (iii) of section 

14 408(a)(12)(A) of the Social Security 

15 Act, 

16 the amount of such transaction shall be 

17 treated as having been received by the in18 dividual as a distribution in accordance 

19 with subparagraph (A) of paragraph (1). 

20 ‘‘(iv) COST-OF-LIVING ADJUST21 MENT.—In the case of any loan made dur22 ing a plan year beginning after December 

23 31, 2019, the $1,000 amount under clause 

24 (iii)(I) shall be increased by an amount 

25 equal to— 


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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost-of-living adjust4 ment determined under section 1(f)(3) 

5 for the calendar year in which the 

6 plan year begins, determined by sub7 stituting ‘calendar year 2018’ for ‘cal8 endar year 1992’ in subparagraph (B) 

9 thereof. Any increase determined 

10 under the preceding sentence shall be 

11 rounded to the next lowest multiple of 

12 $50.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 subsection (a) shall apply to plan years beginning after 

15 December 31, 2018. 

16 (c) STUDY.—The Comptroller General of the United 

17 States shall, not later than the date which is 1 year after 

18 the date of the enactment of this Act— 

19 (1) study the impact of loans from qualified 

20 employer plans (as defined in section 72(p)(4)(A) of 

21 the Internal Revenue Code of 1986) provided 

22 through credit cards and similar arrangements on 

23 the use of retirement savings for purposes other 

24 than funding retirement; and 


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1 (2) report the results of such study to the Com2 mittee on Finance of the Senate and the Committee 

3 on the Ways and Means of the House of Representa4 tives. 

5 If the study under paragraph (1) determines that such 

6 loans, after implementation of the restrictions imposed by 

7 the amendment made by subsection (a), result in greater 

8 usage of retirement savings for purposes other than fund9 ing retirement than loans made by other means, the report 

10 under paragraph (2) shall include recommendations to re11 duce such result. 

12 SEC. 111. PORTABILITY OF LIFETIME INCOME OPTIONS. 

13 (a) IN GENERAL.—Subsection (a) of section 401 of 

14 the Internal Revenue Code of 1986 is amended by insert15 ing after paragraph (37) the following new paragraph: 

16 ‘‘(38) PORTABILITY OF LIFETIME INCOME.— 

17 ‘‘(A) IN GENERAL.—Except as may be oth18 erwise provided by regulations, a trust forming 

19 part of a defined contribution plan shall not be 

20 treated as failing to constitute a qualified trust 

21 under this section solely by reason of allowing— 

22 ‘‘(i) qualified distributions of a life23 time income investment, or 


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1 ‘‘(ii) distributions of a lifetime income 

2 investment in the form of a qualified plan 

3 distribution annuity contract, 

4 on or after the date that is 90 days prior to the 

5 date on which such lifetime income investment 

6 is no longer authorized to be held as an invest7 ment option under the plan. 

8 ‘‘(B) DEFINITIONS.—For purposes of this 

9 subsection— 

10 ‘‘(i) the term ‘qualified distribution’ 

11 means a direct trustee-to-trustee transfer 

12 described in paragraph (31)(A) to an eligi13 ble retirement plan (as defined in section 

14 402(c)(8)(B)), 

15 ‘‘(ii) the term ‘lifetime income invest16 ment’ means an investment option which is 

17 designed to provide an employee with elec18 tion rights— 

19 ‘‘(I) which are not uniformly 

20 available with respect to other invest21 ment options under the plan, and 

22 ‘‘(II) which are to a lifetime in23 come feature available through a con24 tract or other arrangement offered 

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1 gible retirement plan (as so defined), 

2 if paid by means of a direct trustee3 to-trustee transfer described in para4 graph (31)(A) to such other eligible 

5 retirement plan), 

6 ‘‘(iii) the term ‘lifetime income fea7 ture’ means— 

8 ‘‘(I) a feature which guarantees a 

9 minimum level of income annually (or 

10 more frequently) for at least the re11 mainder of the life of the employee or 

12 the joint lives of the employee and the 

13 employee’s designated beneficiary, or 

14 ‘‘(II) an annuity payable on be15 half of the employee under which pay16 ments are made in substantially equal 

17 periodic payments (not less frequently 

18 than annually) over the life of the em19 ployee or the joint lives of the em20 ployee and the employee’s designated 

21 beneficiary, and 

22 ‘‘(iv) the term ‘qualified plan distribu23 tion annuity contract’ means an annuity 

24 contract purchased for a participant and 

25 distributed to the participant by a plan or 


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1 contract described in subparagraph (B) of 

2 section 402(c)(8) (without regard to 

3 clauses (i) and (ii) thereof).’’. 

4 (b) CASH OR DEFERRED ARRANGEMENT.— 

5 (1) IN GENERAL.—Clause (i) of section 

6 401(k)(2)(B) of the Internal Revenue Code of 1986, 

7 as amended by section 110(a), is amended by strik8 ing ‘‘or’’ at the end of subclause (IV), by striking 

9 ‘‘and’’ at the end of subclause (V) and inserting 

10 ‘‘or’’, and by adding at the end the following new 

11 subclause: 

12 ‘‘(VI) except as may be otherwise 

13 provided by regulations, with respect 

14 to amounts invested in a lifetime in15 come investment (as defined in sub16 section (a)(38)(B)(ii)), the date that 

17 is 90 days prior to the date that such 

18 lifetime income investment may no 

19 longer be held as an investment option 

20 under the arrangement, and’’. 

21 (2) DISTRIBUTION REQUIREMENT.—Subpara22 graph (B) of section 401(k)(2) of such Code, as 

23 amended by paragraph (1), is amended by striking 

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1 colon at the end of clause (ii) and inserting ‘‘, and’’, 

2 and by adding at the end the following new clause: 

3 ‘‘(iii) except as may be otherwise pro4 vided by regulations, in the case of 

5 amounts described in clause (i)(VI), will be 

6 distributed only in the form of a qualified 

7 distribution (as defined in subsection 

8 (a)(38)(B)(i)) or a qualified plan distribu9 tion annuity contract (as defined in sub10 section (a)(38)(B)(iv)),’’. 

11 (c) SECTION 403(b) PLANS.— 

12 (1) ANNUITY CONTRACTS.—Paragraph (11) of 

13 section 403(b) of the Internal Revenue Code of 1986 

14 is amended by striking ‘‘or’’ at the end of subpara15 graph (B), by striking the period at the end of sub16 paragraph (C) and inserting ‘‘, or’’, and by inserting 

17 after subparagraph (C) the following new subpara18 graph: 

19 ‘‘(D) except as may be otherwise provided 

20 by regulations, with respect to amounts invested 

21 in a lifetime income investment (as defined in 

22 section 401(a)(38)(B)(ii))— 

23 ‘‘(i) on or after the date that is 90 

24 days prior to the date that such lifetime 

25 income investment may no longer be held 


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1 as an investment option under the con2 tract, and 

3 ‘‘(ii) in the form of a qualified dis4 tribution (as defined in section 

5 401(a)(38)(B)(i)) or a qualified plan dis6 tribution annuity contract (as defined in 

7 section 401(a)(38)(B)(iv)).’’. 

8 (2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 

9 of section 403(b)(7) of such Code is amended by 

10 striking ‘‘if—’’ and all that follows and inserting ‘‘if 

11 the amounts are to be invested in regulated invest12 ment company stock to be held in that custodial ac13 count, and under the custodial account— 

14 ‘‘(i) no such amounts may be paid or 

15 made available to any distributee (unless 

16 such amount is a distribution to which sec17 tion 72(t)(2)(G) applies) before— 

18 ‘‘(I) the employee dies, 

19 ‘‘(II) the employee attains age 

591 20 ⁄2, 

21 ‘‘(III) the employee has a sever22 ance from employment, 

23 ‘‘(IV) the employee becomes dis24 abled (within the meaning of section 

25 72(m)(7)), 


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1 ‘‘(V) in the case of contributions 

2 made pursuant to a salary reduction 

3 agreement (within the meaning of sec4 tion 3121(a)(5)(D)), the employee en5 counters financial hardship, or 

6 ‘‘(VI) except as may be otherwise 

7 provided by regulations, with respect 

8 to amounts invested in a lifetime in9 come investment (as defined in section 

10 401(a)(38)(B)(ii)), the date that is 90 

11 days prior to the date that such life12 time income investment may no longer 

13 be held as an investment option under 

14 the contract, and 

15 ‘‘(ii) in the case of amounts described 

16 in clause (i)(VI), such amounts will be dis17 tributed only in the form of a qualified dis18 tribution (as defined in section 

19 401(a)(38)(B)(i)) or a qualified plan dis20 tribution annuity contract (as defined in 

21 section 401(a)(38)(B)(iv)).’’. 

22 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 

23 (1) IN GENERAL.—Subparagraph (A) of section 

24 457(d)(1) of the Internal Revenue Code of 1986 is 

25 amended by striking ‘‘or’’ at the end of clause (ii), 


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1 by inserting ‘‘or’’ at the end of clause (iii), and by 

2 adding after clause (iii) the following: 

3 ‘‘(iv) except as may be otherwise pro4 vided by regulations, in the case of a plan 

5 maintained by an employer described in 

6 subsection (e)(1)(A), with respect to 

7 amounts invested in a lifetime income in8 vestment (as defined in section 

9 401(a)(38)(B)(ii)), the date that is 90 

10 days prior to the date that such lifetime 

11 income investment may no longer be held 

12 as an investment option under the plan,’’. 

13 (2) DISTRIBUTION REQUIREMENT.—Paragraph 

14 (1) of section 457(d) of such Code is amended by 

15 striking ‘‘and’’ at the end of subparagraph (B), by 

16 striking the period at the end of subparagraph (C) 

17 and inserting ‘‘, and’’, and by inserting after sub18 paragraph (C) the following new subparagraph: 

19 ‘‘(D) except as may be otherwise provided 

20 by regulations, in the case of amounts described 

21 in subparagraph (A)(iv), such amounts will be 

22 distributed only in the form of a qualified dis23 tribution (as defined in section 

24 401(a)(38)(B)(i)) or a qualified plan distribuVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 tion annuity contract (as defined in section 

2 401(a)(38)(B)(iv)).’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to plan years beginning after De5 cember 31, 2018. 

6 SEC. 112. TREATMENT OF CUSTODIAL ACCOUNTS ON TER7 MINATION OF SECTION 403(b) PLANS. 

8 (a) IN GENERAL.—Section 403(b)(7) of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following: 

11 ‘‘(D) TREATMENT OF CUSTODIAL AC12 COUNT UPON PLAN TERMINATION.— 

13 ‘‘(i) IN GENERAL.—If— 

14 ‘‘(I) an employer terminates the 

15 plan under which amounts are con16 tributed to a custodial account under 

17 subparagraph (A), and 

18 ‘‘(II) the person holding the as19 sets of the account has demonstrated 

20 to the satisfaction of the Secretary 

21 under section 408(a)(2) that the per22 son is qualified to be a trustee of an 

23 individual retirement plan, 

24 then, as of the date of the termination, the 

25 custodial account shall be deemed to be an 


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1 individual retirement plan for purposes of 

2 this title. 

3 ‘‘(ii) TREATMENT AS ROTH IRA.—Any 

4 custodial account treated as an individual 

5 retirement plan under clause (i) shall be 

6 treated as a Roth IRA only if the custodial 

7 account was a designated Roth account.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to plan terminations occurring 

10 after December 31, 2018. 

11 SEC. 113. CLARIFICATION OF RETIREMENT INCOME AC12 COUNT RULES RELATING TO CHURCH-CON13 TROLLED ORGANIZATIONS. 

14 (a) IN GENERAL.—Subparagraph (B) of section 

15 403(b)(9) of the Internal Revenue Code of 1986 is amend16 ed by inserting ‘‘(including an employee described in sec17 tion 414(e)(3)(B))’’ after ‘‘employee described in para18 graph (1)’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to years beginning before, on, or 

21 after the date of the enactment of this Act. 


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1 TITLE II—ADMINISTRATIVE 

2 IMPROVEMENTS 

3 SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 

4 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

5 OF YEAR. 

6 (a) IN GENERAL.—Subsection (b) of section 401 of 

7 the Internal Revenue Code of 1986 is amended— 

8 (1) by striking ‘‘RETROACTIVE CHANGES IN

9 PLAN.—A stock bonus’’ and inserting ‘‘PLAN

10 AMENDMENTS.— 

11 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

12 PLAN.—A stock bonus’’; and 

13 (2) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) ADOPTION OF PLAN.—If an employer 

16 adopts a stock bonus, pension, profit-sharing, or an17 nuity plan after the close of a taxable year but be18 fore the time prescribed by law for filing the return 

19 of the employer for the taxable year (including ex20 tensions thereof), the employer may elect to treat 

21 the plan as having been adopted as of the last day 

22 of the taxable year.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to plans adopted for taxable years 

25 beginning after December 31, 2018. 


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1 SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 

2 PLANS. 

3 (a) IN GENERAL.—The Secretary of the Treasury 

4 and the Secretary of Labor shall, in cooperation, modify 

5 the returns required under section 6058 of the Internal 

6 Revenue Code of 1986 and the reports required by section 

7 104 of the Employee Retirement Income Security Act of 

8 1974 (29 U.S.C. 1024) so that all members of a group 

9 of plans described in subsection (c) may file a single aggre10 gated annual return or report satisfying the requirements 

11 of both such sections. 

12 (b) ADMINISTRATIVE REQUIREMENTS.—In devel13 oping the consolidated return or report under subsection 

14 (a), the Secretary of the Treasury and the Secretary of 

15 Labor may require such return or report to include any 

16 information regarding each plan in the group as such Sec17 retaries determine is necessary or appropriate for the en18 forcement and administration of the Internal Revenue 

19 Code of 1986 and the Employee Retirement Income Secu20 rity Act of 1974. 

21 (c) PLANS DESCRIBED.—A group of plans is de22 scribed in this subsection if all plans in the group— 

23 (1) are individual account plans or defined con24 tribution plans (as defined in section 3(34) of the 

25 Employee Retirement Income Security Act of 1974 


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1 (29 U.S.C. 1002(34)) or in section 414(i) of the In2 ternal Revenue Code of 1986); 

3 (2) have— 

4 (A) the same trustee (as described in sec5 tion 403(a) of such Act (29 U.S.C. 1103(a))); 

6 (B) the same one or more named fidu7 ciaries (as described in section 402(a) of such 

8 Act (29 U.S.C. 1102(a))); 

9 (C) the same administrator (as defined in 

10 section 3(16)(A) of such Act (29 U.S.C. 

11 1002(16)(A))) and plan administrator (as de12 fined in section 414(g) of the Internal Revenue 

13 Code of 1986); and 

14 (D) plan years beginning on the same 

15 date; and 

16 (3) provide the same investments or investment 

17 options to participants and beneficiaries. 

18 A plan not subject to title I of the Employee Retirement 

19 Income Security Act of 1974 shall be treated as meeting 

20 the requirements of paragraph (2) as part of a group of 

21 plans if the same person that performs each of the func22 tions described in such paragraph, as applicable, for all 

23 other plans in such group performs each of such functions 

24 for such plan. 


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1 (d) CLARIFICATION RELATING TO ELECTRONIC FIL2 ING OF RETURNS FOR DEFERRED COMPENSATION

3 PLANS.— 

4 (1) IN GENERAL.—Section 6011(e) of the Inter5 nal Revenue Code of 1986 is amended by adding at 

6 the end the following new paragraph: 

7 ‘‘(5) APPLICATION OF NUMERICAL LIMITATION

8 TO RETURNS RELATING TO DEFERRED COMPENSA9 TION PLANS.—For purposes of applying the numer10 ical limitation under paragraph (2)(A) to any return 

11 required under section 6058, information regarding 

12 each plan for which information is provided on such 

13 return shall be treated as a separate return.’’. 

14 (2) EFFECTIVE DATE.—The amendment made 

15 by paragraph (1) shall apply to returns required to 

16 be filed with respect to plan years beginning after 

17 December 31, 2018. 

18 (e) EFFECTIVE DATE.—The modification required by 

19 subsection (a) shall be implemented not later than Janu20 ary 1, 2021, and shall apply to returns and reports for 

21 plan years beginning after December 31, 2020. 

22 SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 

23 (a) IN GENERAL.—Subparagraph (B) of section 

24 105(a)(2) of the Employee Retirement Income Security 

25 Act of 1974 (29 U.S.C. 1025(a)(2)) is amended— 


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1 (1) in clause (i), by striking ‘‘and’’ at the end; 

2 (2) in clause (ii), by striking ‘‘diversification.’’ 

3 and inserting ‘‘diversification, and’’; and 

4 (3) by inserting at the end the following: 

5 ‘‘(iii) the lifetime income disclosure 

6 described in subparagraph (D)(i). 

7 In the case of pension benefit statements de8 scribed in clause (i) of paragraph (1)(A), a life9 time income disclosure under clause (iii) of this 

10 subparagraph shall be required to be included 

11 in only one pension benefit statement during 

12 any one 12-month period.’’. 

13 (b) LIFETIME INCOME.—Paragraph (2) of section 

14 105(a) of the Employee Retirement Income Security Act 

15 of 1974 (29 U.S.C. 1025(a)) is amended by adding at the 

16 end the following new subparagraph: 

17 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 

18 ‘‘(i) IN GENERAL.— 

19 ‘‘(I) DISCLOSURE.—A lifetime in20 come disclosure shall set forth the life21 time income stream equivalent of the 

22 total benefits accrued with respect to 

23 the participant or beneficiary. 

24 ‘‘(II) LIFETIME INCOME STREAM

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1 FITS ACCRUED.—For purposes of this 

2 subparagraph, the term ‘lifetime in3 come stream equivalent of the total 

4 benefits accrued’ means the amount of 

5 monthly payments the participant or 

6 beneficiary would receive if the total 

7 accrued benefits of such participant or 

8 beneficiary were used to provide life9 time income streams described in sub10 clause (III), based on assumptions 

11 specified in rules prescribed by the 

12 Secretary. 

13 ‘‘(III) LIFETIME INCOME

14 STREAMS.—The lifetime income 

15 streams described in this subclause 

16 are a qualified joint and survivor an17 nuity (as defined in section 205(d)), 

18 based on assumptions specified in 

19 rules prescribed by the Secretary, in20 cluding the assumption that the par21 ticipant or beneficiary has a spouse of 

22 equal age, and a single life annuity. 

23 Such lifetime income streams may 

24 have a term certain or other features 


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1 to the extent permitted under rules 

2 prescribed by the Secretary. 

3 ‘‘(ii) MODEL DISCLOSURE.—Not later 

4 than 1 year after the date of the enact5 ment of the Retirement Enhancement and 

6 Savings Act of 2018, the Secretary shall 

7 issue a model lifetime income disclosure, 

8 written in a manner so as to be understood 

9 by the average plan participant, which— 

10 ‘‘(I) explains that the lifetime in11 come stream equivalent is only pro12 vided as an illustration; 

13 ‘‘(II) explains that the actual 

14 payments under the lifetime income 

15 stream described in clause (i)(III) 

16 which may be purchased with the 

17 total benefits accrued will depend on 

18 numerous factors and may vary sub19 stantially from the lifetime income 

20 stream equivalent in the disclosures; 

21 ‘‘(III) explains the assumptions 

22 upon which the lifetime income stream 

23 equivalent was determined; and 


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1 ‘‘(IV) provides such other similar 

2 explanations as the Secretary con3 siders appropriate. 

4 ‘‘(iii) ASSUMPTIONS AND RULES.— 

5 Not later than 1 year after the date of the 

6 enactment of the Retirement Enhancement 

7 and Savings Act of 2018, the Secretary 

8 shall— 

9 ‘‘(I) prescribe assumptions which 

10 administrators of individual account 

11 plans may use in converting total ac12 crued benefits into lifetime income 

13 stream equivalents for purposes of 

14 this subparagraph; and 

15 ‘‘(II) issue interim final rules 

16 under clause (i). 

17 In prescribing assumptions under sub18 clause (I), the Secretary may prescribe a 

19 single set of specific assumptions (in which 

20 case the Secretary may issue tables or fac21 tors which facilitate such conversions), or 

22 ranges of permissible assumptions. To the 

23 extent that an accrued benefit is or may be 

24 invested in a lifetime income stream de25 scribed in clause (i)(III), the assumptions 


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1 prescribed under subclause (I) shall, to the 

2 extent appropriate, permit administrators 

3 of individual account plans to use the 

4 amounts payable under such lifetime in5 come stream as a lifetime income stream 

6 equivalent. 

7 ‘‘(iv) LIMITATION ON LIABILITY.—No 

8 plan fiduciary, plan sponsor, or other per9 son shall have any liability under this title 

10 solely by reason of the provision of lifetime 

11 income stream equivalents which are de12 rived in accordance with the assumptions 

13 and rules described in clause (iii) and 

14 which include the explanations contained in 

15 the model lifetime income disclosure de16 scribed in clause (ii). This clause shall 

17 apply without regard to whether the provi18 sion of such lifetime income stream equiva19 lent is required by subparagraph (B)(iii). 

20 ‘‘(v) EFFECTIVE DATE.—The require21 ment in subparagraph (B)(iii) shall apply 

22 to pension benefit statements furnished 

23 more than 12 months after the latest of 

24 the issuance by the Secretary of— 


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1 ‘‘(I) interim final rules under 

2 clause (i); 

3 ‘‘(II) the model disclosure under 

4 clause (ii); or 

5 ‘‘(III) the assumptions under 

6 clause (iii).’’. 

7 SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

8 LIFETIME INCOME PROVIDER. 

9 Section 404 of the Employee Retirement Income Se10 curity Act of 1974 (29 U.S.C. 1104) is amended by adding 

11 at the end the following: 

12 ‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 

13 ‘‘(1) IN GENERAL.—With respect to the selec14 tion of an insurer for a guaranteed retirement in15 come contract, the requirements of subsection 

16 (a)(1)(B) will be deemed to be satisfied if a fidu17 ciary— 

18 ‘‘(A) engages in an objective, thorough, 

19 and analytical search for the purpose of identi20 fying insurers from which to purchase such con21 tracts; 

22 ‘‘(B) with respect to each insurer identified 

23 under subparagraph (A)— 

24 ‘‘(i) considers the financial capability 

25 of such insurer to satisfy its obligations 


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1 under the guaranteed retirement income 

2 contract; and 

3 ‘‘(ii) considers the cost (including fees 

4 and commissions) of the guaranteed retire5 ment income contract offered by the in6 surer in relation to the benefits and prod7 uct features of the contract and adminis8 trative services to be provided under such 

9 contract; and 

10 ‘‘(C) on the basis of such consideration, 

11 concludes that— 

12 ‘‘(i) at the time of the selection, the 

13 insurer is financially capable of satisfying 

14 its obligations under the guaranteed retire15 ment income contract; and 

16 ‘‘(ii) the relative cost of the selected 

17 guaranteed retirement income contract as 

18 described in subparagraph (B)(ii) is rea19 sonable. 

20 ‘‘(2) FINANCIAL CAPABILITY OF THE IN21 SURER.—A fiduciary will be deemed to satisfy the 

22 requirements of paragraphs (1)(B)(i) and (1)(C)(i) 

23 if— 

24 ‘‘(A) the fiduciary obtains written rep25 resentations from the insurer that— 


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1 ‘‘(i) the insurer is licensed to offer 

2 guaranteed retirement income contracts; 

3 ‘‘(ii) the insurer, at the time of selec4 tion and for each of the immediately pre5 ceding 7 plan years— 

6 ‘‘(I) operates under a certificate 

7 of authority from the insurance com8 missioner of its domiciliary State 

9 which has not been revoked or sus10 pended; 

11 ‘‘(II) has filed audited financial 

12 statements in accordance with the 

13 laws of its domiciliary State under ap14 plicable statutory accounting prin15 ciples; 

16 ‘‘(III) maintains (and has main17 tained) reserves which satisfies all the 

18 statutory requirements of all States 

19 where the insurer does business; and 

20 ‘‘(IV) is not operating under an 

21 order of supervision, rehabilitation, or 

22 liquidation; 

23 ‘‘(iii) the insurer undergoes, at least 

24 every 5 years, a financial examination 

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1 ciliary State) by the insurance commis2 sioner of the domiciliary State (or rep3 resentative, designee, or other party ap4 proved by such commissioner); and 

5 ‘‘(iv) the insurer will notify the fidu6 ciary of any change in circumstances oc7 curring after the provision of the represen8 tations in clauses (i), (ii), and (iii) which 

9 would preclude the insurer from making 

10 such representations at the time of 

11 issuance of the guaranteed retirement in12 come contract; and 

13 ‘‘(B) after receiving such representations 

14 and as of the time of selection, the fiduciary 

15 has not received any notice described in sub16 paragraph (A)(iv) and is in possession of no 

17 other information which would cause the fidu18 ciary to question the representations provided. 

19 ‘‘(3) NO REQUIREMENT TO SELECT LOWEST

20 COST.—Nothing in this subsection shall be construed 

21 to require a fiduciary to select the lowest cost con22 tract. A fiduciary may consider the value of a con23 tract, including features and benefits of the contract 

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1 itation, the insurer’s financial strength) in conjunc2 tion with the cost of the contract. 

3 ‘‘(4) TIME OF SELECTION.— 

4 ‘‘(A) IN GENERAL.—For purposes of this 

5 subsection, the time of selection is— 

6 ‘‘(i) the time that the insurer and the 

7 contract are selected for distribution of 

8 benefits to a specific participant or bene9 ficiary; or 

10 ‘‘(ii) if the fiduciary periodically re11 views the continuing appropriateness of the 

12 conclusion described in paragraph (1)(C) 

13 with respect to a selected insurer, taking 

14 into account the considerations described 

15 in such paragraph, the time that the in16 surer and the contract are selected to pro17 vide benefits at future dates to participants 

18 or beneficiaries under the plan. 

19 Nothing in the preceding sentence shall be con20 strued to require the fiduciary to review the ap21 propriateness of a selection after the purchase 

22 of a contract for a participant or beneficiary. 

23 ‘‘(B) PERIODIC REVIEW.—A fiduciary will 

24 be deemed to have conducted the periodic re25 view described in subparagraph (A)(ii) if the fiVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 duciary obtains the written representations de2 scribed in clauses (i), (ii), and (iii) of paragraph 

3 (2)(A) from the insurer on an annual basis, un4 less the fiduciary receives any notice described 

5 in paragraph (2)(A)(iv) or otherwise becomes 

6 aware of facts that would cause the fiduciary to 

7 question such representations. 

8 ‘‘(5) LIMITED LIABILITY.—A fiduciary which 

9 satisfies the requirements of this subsection shall not 

10 be liable following the distribution of any benefit, or 

11 the investment by or on behalf of a participant or 

12 beneficiary pursuant to the selected guaranteed re13 tirement income contract, for any losses that may 

14 result to the participant or beneficiary due to an in15 surer’s inability to satisfy its financial obligations 

16 under the terms of such contract. 

17 ‘‘(6) DEFINITIONS.—For purposes of this sub18 section— 

19 ‘‘(A) INSURER.—The term ‘insurer’ means 

20 an insurance company, insurance service, or in21 surance organization, including affiliates of 

22 such companies. 

23 ‘‘(B) GUARANTEED RETIREMENT INCOME

24 CONTRACT.—The term ‘guaranteed retirement 

25 income contract’ means an annuity contract for 


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1 a fixed term or a contract (or provision or fea2 ture thereof) which provides guaranteed bene3 fits annually (or more frequently) for at least 

4 the remainder of the life of the participant or 

5 the joint lives of the participant and the partici6 pant’s designated beneficiary as part of an indi7 vidual account plan.’’. 

8 SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 

9 TO PROTECT OLDER, LONGER SERVICE PAR10 TICIPANTS. 

11 (a) IN GENERAL.—Section 401 of the Internal Rev12 enue Code of 1986 is amended— 

13 (1) by redesignating subsection (o) as sub14 section (p); and 

15 (2) by inserting after subsection (n) the fol16 lowing new subsection: 

17 ‘‘(o) SPECIAL RULES FOR APPLYING NON18 DISCRIMINATION RULES TO PROTECT OLDER, LONGER

19 SERVICE AND GRANDFATHERED PARTICIPANTS .— 

20 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS

21 WITH CLOSED CLASSES OF PARTICIPANTS.— 

22 ‘‘(A) BENEFITS, RIGHTS, OR FEATURES

23 PROVIDED TO CLOSED CLASSES.—A defined 

24 benefit plan which provides benefits, rights, or 

25 features to a closed class of participants shall 


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1 not fail to satisfy the requirements of sub2 section (a)(4) by reason of the composition of 

3 such closed class or the benefits, rights, or fea4 tures provided to such closed class, if— 

5 ‘‘(i) for the plan year as of which the 

6 class closes and the 2 succeeding plan 

7 years, such benefits, rights, and features 

8 satisfy the requirements of subsection 

9 (a)(4) (without regard to this subpara10 graph but taking into account the rules of 

11 subparagraph (I)), 

12 ‘‘(ii) after the date as of which the 

13 class was closed, any plan amendment 

14 which modifies the closed class or the ben15 efits, rights, and features provided to such 

16 closed class does not discriminate signifi17 cantly in favor of highly compensated em18 ployees, and 

19 ‘‘(iii) the class was closed before Sep20 tember 21, 2016, or the plan is described 

21 in subparagraph (C). 

22 ‘‘(B) AGGREGATE TESTING WITH DEFINED

23 CONTRIBUTION PLANS PERMITTED ON A BENE24 FITS BASIS.— 


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1 ‘‘(i) IN GENERAL.—For purposes of 

2 determining compliance with subsection 

3 (a)(4) and section 410(b), a defined benefit 

4 plan described in clause (iii) may be aggre5 gated and tested on a benefits basis with 

6 1 or more defined contribution plans, in7 cluding with the portion of 1 or more de8 fined contribution plans which— 

9 ‘‘(I) provides matching contribu10 tions (as defined in subsection 

11 (m)(4)(A)), 

12 ‘‘(II) provides annuity contracts 

13 described in section 403(b) which are 

14 purchased with matching contribu15 tions or nonelective contributions, or 

16 ‘‘(III) consists of an employee 

17 stock ownership plan (within the 

18 meaning of section 4975(e)(7)) or a 

19 tax credit employee stock ownership 

20 plan (within the meaning of section 

21 409(a)). 

22 ‘‘(ii) SPECIAL RULES FOR MATCHING

23 CONTRIBUTIONS.—For purposes of clause 

24 (i), if a defined benefit plan is aggregated 


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1 with a portion of a defined contribution 

2 plan providing matching contributions— 

3 ‘‘(I) such defined benefit plan 

4 must also be aggregated with any por5 tion of such defined contribution plan 

6 which provides elective deferrals de7 scribed in subparagraph (A) or (C) of 

8 section 402(g)(3), and 

9 ‘‘(II) such matching contribu10 tions shall be treated in the same 

11 manner as nonelective contributions, 

12 including for purposes of applying the 

13 rules of subsection (l). 

14 ‘‘(iii) PLANS DESCRIBED.—A defined 

15 benefit plan is described in this clause if— 

16 ‘‘(I) the plan provides benefits to 

17 a closed class of participants, 

18 ‘‘(II) for the plan year as of 

19 which the class closes and the 2 suc20 ceeding plan years, the plan satisfies 

21 the requirements of section 410(b) 

22 and subsection (a)(4) (without regard 

23 to this subparagraph but taking into 

24 account the rules of subparagraph 

25 (I)), 


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1 ‘‘(III) after the date as of which 

2 the class was closed, any plan amend3 ment which modifies the closed class 

4 or the benefits provided to such closed 

5 class does not discriminate signifi6 cantly in favor of highly compensated 

7 employees, and 

8 ‘‘(IV) the class was closed before 

9 September 21, 2016, or the plan is 

10 described in subparagraph (C). 

11 ‘‘(C) PLANS DESCRIBED.—A plan is de12 scribed in this subparagraph if, taking into ac13 count any predecessor plan— 

14 ‘‘(i) such plan has been in effect for 

15 at least 5 years as of the date the class is 

16 closed, and 

17 ‘‘(ii) during the 5-year period pre18 ceding the date the class is closed, there 

19 has not been a substantial increase in the 

20 coverage or value of the benefits, rights, or 

21 features described in subparagraph (A) or 

22 in the coverage or benefits under the plan 

23 described in subparagraph (B)(iii) (which24 ever is applicable). 


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1 ‘‘(D) DETERMINATION OF SUBSTANTIAL

2 INCREASE FOR BENEFITS, RIGHTS, AND FEA3 TURES.—In applying subparagraph (C)(ii) for 

4 purposes of subparagraph (A)(iii), a plan shall 

5 be treated as having had a substantial increase 

6 in coverage or value of the benefits, rights, or 

7 features described in subparagraph (A) during 

8 the applicable 5-year period only if, during such 

9 period— 

10 ‘‘(i) the number of participants cov11 ered by such benefits, rights, or features 

12 on the date such period ends is more than 

13 50 percent greater than the number of 

14 such participants on the first day of the 

15 plan year in which such period began, or 

16 ‘‘(ii) such benefits, rights, and fea17 tures have been modified by 1 or more 

18 plan amendments in such a way that, as of 

19 the date the class is closed, the value of 

20 such benefits, rights, and features to the 

21 closed class as a whole is substantially 

22 greater than the value as of the first day 

23 of such 5-year period, solely as a result of 

24 such amendments. 


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1 ‘‘(E) DETERMINATION OF SUBSTANTIAL

2 INCREASE FOR AGGREGATE TESTING ON BENE3 FITS BASIS.—In applying subparagraph (C)(ii) 

4 for purposes of subparagraph (B)(iii)(IV), a 

5 plan shall be treated as having had a substan6 tial increase in coverage or benefits during the 

7 applicable 5-year period only if, during such pe8 riod— 

9 ‘‘(i) the number of participants bene10 fiting under the plan on the date such pe11 riod ends is more than 50 percent greater 

12 than the number of such participants on 

13 the first day of the plan year in which such 

14 period began, or 

15 ‘‘(ii) the average benefit provided to 

16 such participants on the date such period 

17 ends is more than 50 percent greater than 

18 the average benefit provided on the first 

19 day of the plan year in which such period 

20 began. 

21 ‘‘(F) CERTAIN EMPLOYEES DIS22 REGARDED.—For purposes of subparagraphs 

23 (D) and (E), any increase in coverage or value 

24 or in coverage or benefits, whichever is applica25 ble, which is attributable to such coverage and 


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1 value or coverage and benefits provided to em2 ployees— 

3 ‘‘(i) who became participants as a re4 sult of a merger, acquisition, or similar 

5 event which occurred during the 7-year pe6 riod preceding the date the class is closed, 

7 or 

8 ‘‘(ii) who became participants by rea9 son of a merger of the plan with another 

10 plan which had been in effect for at least 

11 5 years as of the date of the merger, 

12 shall be disregarded, except that clause (ii) 

13 shall apply for purposes of subparagraph (D) 

14 only if, under the merger, the benefits, rights, 

15 or features under 1 plan are conformed to the 

16 benefits, rights, or features of the other plan 

17 prospectively. 

18 ‘‘(G) RULES RELATING TO AVERAGE BEN19 EFIT.—For purposes of subparagraph (E)— 

20 ‘‘(i) the average benefit provided to 

21 participants under the plan will be treated 

22 as having remained the same between the 

23 2 dates described in subparagraph (E)(ii) 

24 if the benefit formula applicable to such 


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1 participants has not changed between such 

2 dates, and 

3 ‘‘(ii) if the benefit formula applicable 

4 to 1 or more participants under the plan 

5 has changed between such 2 dates, then 

6 the average benefit under the plan shall be 

7 considered to have increased by more than 

8 50 percent only if— 

9 ‘‘(I) the total amount determined 

10 under section 430(b)(1)(A)(i) for all 

11 participants benefiting under the plan 

12 for the plan year in which the 5-year 

13 period described in subparagraph (E) 

14 ends, exceeds 

15 ‘‘(II) the total amount deter16 mined under section 430(b)(1)(A)(i) 

17 for all such participants for such plan 

18 year, by using the benefit formula in 

19 effect for each such participant for 

20 the first plan year in such 5-year pe21 riod, 

22 by more than 50 percent. In the case of a 

23 CSEC plan (as defined in section 414(y)), 

24 the normal cost of the plan (as determined 

25 under section 433(j)(1)(B)) shall be used 


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1 in lieu of the amount determined under 

2 section 430(b)(1)(A)(i). 

3 ‘‘(H) TREATMENT AS SINGLE PLAN.—For 

4 purposes of subparagraphs (E) and (G), a plan 

5 described in section 413(c) shall be treated as 

6 a single plan rather than as separate plans 

7 maintained by each participating employer. 

8 ‘‘(I) SPECIAL RULES.—For purposes of 

9 subparagraphs (A)(i) and (B)(iii)(II), the fol10 lowing rules shall apply: 

11 ‘‘(i) In applying section 410(b)(6)(C), 

12 the closing of the class of participants shall 

13 not be treated as a significant change in 

14 coverage under section 410(b)(6)(C)(i)(II). 

15 ‘‘(ii) 2 or more plans shall not fail to 

16 be eligible to be aggregated and treated as 

17 a single plan solely by reason of having dif18 ferent plan years. 

19 ‘‘(iii) Changes in the employee popu20 lation shall be disregarded to the extent at21 tributable to individuals who become em22 ployees or cease to be employees, after the 

23 date the class is closed, by reason of a 

24 merger, acquisition, divestiture, or similar 

25 event. 


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1 ‘‘(iv) Aggregation and all other testing 

2 methodologies otherwise applicable under 

3 subsection (a)(4) and section 410(b) may 

4 be taken into account. 

5 The rule of clause (ii) shall also apply for pur6 poses of determining whether plans to which 

7 subparagraph (B)(i) applies may be aggregated 

8 and treated as 1 plan for purposes of deter9 mining whether such plans meet the require10 ments of subsection (a)(4) and section 410(b). 

11 ‘‘(J) SPUN-OFF PLANS.—For purposes of 

12 this paragraph, if a portion of a defined benefit 

13 plan described in subparagraph (A) or (B)(iii) 

14 is spun off to another employer and the spun15 off plan continues to satisfy the requirements 

16 of— 

17 ‘‘(i) subparagraph (A)(i) or 

18 (B)(iii)(II), whichever is applicable, if the 

19 original plan was still within the 3-year pe20 riod described in such subparagraph at the 

21 time of the spin off, and 

22 ‘‘(ii) subparagraph (A)(ii) or 

23 (B)(iii)(III), whichever is applicable, 


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1 the treatment under subparagraph (A) or (B) 

2 of the spun-off plan shall continue with respect 

3 to such other employer. 

4 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

5 PLANS.— 

6 ‘‘(A) TESTING ON A BENEFITS BASIS.—A 

7 defined contribution plan shall be permitted to 

8 be tested on a benefits basis if— 

9 ‘‘(i) such defined contribution plan 

10 provides make-whole contributions to a 

11 closed class of participants whose accruals 

12 under a defined benefit plan have been re13 duced or eliminated, 

14 ‘‘(ii) for the plan year of the defined 

15 contribution plan as of which the class eli16 gible to receive such make-whole contribu17 tions closes and the 2 succeeding plan 

18 years, such closed class of participants sat19 isfies the requirements of section 

20 410(b)(2)(A)(i) (determined by applying 

21 the rules of paragraph (1)(I)), 

22 ‘‘(iii) after the date as of which the 

23 class was closed, any plan amendment to 

24 the defined contribution plan which modi25 fies the closed class or the allocations, benVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 efits, rights, and features provided to such 

2 closed class does not discriminate signifi3 cantly in favor of highly compensated em4 ployees, and 

5 ‘‘(iv) the class was closed before Sep6 tember 21, 2016, or the defined benefit 

7 plan under clause (i) is described in para8 graph (1)(C) (as applied for purposes of 

9 paragraph (1)(B)(iii)(IV)). 

10 ‘‘(B) AGGREGATION WITH PLANS INCLUD11 ING MATCHING CONTRIBUTIONS.— 

12 ‘‘(i) IN GENERAL.—With respect to 1 

13 or more defined contribution plans de14 scribed in subparagraph (A), for purposes 

15 of determining compliance with subsection 

16 (a)(4) and section 410(b), the portion of 

17 such plans which provides make-whole con18 tributions or other nonelective contribu19 tions may be aggregated and tested on a 

20 benefits basis with the portion of 1 or 

21 more other defined contribution plans 

22 which— 

23 ‘‘(I) provides matching contribu24 tions (as defined in subsection 

25 (m)(4)(A)), 


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1 ‘‘(II) provides annuity contracts 

2 described in section 403(b) which are 

3 purchased with matching contribu4 tions or nonelective contributions, or 

5 ‘‘(III) consists of an employee 

6 stock ownership plan (within the 

7 meaning of section 4975(e)(7)) or a 

8 tax credit employee stock ownership 

9 plan (within the meaning of section 

10 409(a)). 

11 ‘‘(ii) SPECIAL RULES FOR MATCHING

12 CONTRIBUTIONS.—Rules similar to the 

13 rules of paragraph (1)(B)(ii) shall apply 

14 for purposes of clause (i). 

15 ‘‘(C) SPECIAL RULES FOR TESTING DE16 FINED CONTRIBUTION PLAN FEATURES PRO17 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

18 OLDER, LONGER SERVICE PARTICIPANTS.—In 

19 the case of a defined contribution plan which 

20 provides benefits, rights, or features to a closed 

21 class of participants whose accruals under a de22 fined benefit plan have been reduced or elimi23 nated, the plan shall not fail to satisfy the re24 quirements of subsection (a)(4) solely by reason 

25 of the composition of the closed class or the 


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1 benefits, rights, or features provided to such 

2 closed class if the defined contribution plan and 

3 defined benefit plan otherwise meet the require4 ments of subparagraph (A) but for the fact that 

5 the make-whole contributions under the defined 

6 contribution plan are made in whole or in part 

7 through matching contributions. 

8 ‘‘(D) SPUN-OFF PLANS.—For purposes of 

9 this paragraph, if a portion of a defined con10 tribution plan described in subparagraph (A) or 

11 (C) is spun off to another employer, the treat12 ment under subparagraph (A) or (C) of the 

13 spun-off plan shall continue with respect to the 

14 other employer if such plan continues to comply 

15 with the requirements of clauses (ii) (if the 

16 original plan was still within the 3-year period 

17 described in such clause at the time of the spin 

18 off) and (iii) of subparagraph (A), as deter19 mined for purposes of subparagraph (A) or (C), 

20 whichever is applicable. 

21 ‘‘(3) DEFINITIONS.—For purposes of this sub22 section— 

23 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex24 cept as otherwise provided in paragraph (2)(C), 

25 the term ‘make-whole contributions’ means nonVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 elective allocations for each employee in the 

2 class which are reasonably calculated, in a con3 sistent manner, to replace some or all of the re4 tirement benefits which the employee would 

5 have received under the defined benefit plan 

6 and any other plan or qualified cash or deferred 

7 arrangement under subsection (k)(2) if no 

8 change had been made to such defined benefit 

9 plan and such other plan or arrangement. For 

10 purposes of the preceding sentence, consistency 

11 shall not be required with respect to employees 

12 who were subject to different benefit formulas 

13 under the defined benefit plan. 

14 ‘‘(B) REFERENCES TO CLOSED CLASS OF

15 PARTICIPANTS.—References to a closed class of 

16 participants and similar references to a closed 

17 class shall include arrangements under which 1 

18 or more classes of participants are closed, ex19 cept that 1 or more classes of participants 

20 closed on different dates shall not be aggre21 gated for purposes of determining the date any 

22 such class was closed. 

23 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

24 The term ‘highly compensated employee’ has 


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1 the meaning given such term in section 

2 414(q).’’. 

3 (b) PARTICIPATION REQUIREMENTS.—Paragraph 

4 (26) of section 401(a) of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 subparagraph: 

7 ‘‘(I) PROTECTED PARTICIPANTS.— 

8 ‘‘(i) IN GENERAL.—A plan shall be 

9 deemed to satisfy the requirements of sub10 paragraph (A) if— 

11 ‘‘(I) the plan is amended— 

12 ‘‘(aa) to cease all benefit ac13 cruals, or 

14 ‘‘(bb) to provide future ben15 efit accruals only to a closed 

16 class of participants, 

17 ‘‘(II) the plan satisfies subpara18 graph (A) (without regard to this sub19 paragraph) as of the effective date of 

20 the amendment, and 

21 ‘‘(III) the amendment was adopt22 ed before September 21, 2016, or the 

23 plan is described in clause (ii). 

24 ‘‘(ii) PLANS DESCRIBED.—A plan is 

25 described in this clause if the plan would 


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1 be described in subsection (o)(1)(C), as ap2 plied for purposes of subsection 

3 (o)(1)(B)(iii)(IV) and by treating the effec4 tive date of the amendment as the date the 

5 class was closed for purposes of subsection 

6 (o)(1)(C). 

7 ‘‘(iii) SPECIAL RULES.—For purposes 

8 of clause (i)(II), in applying section 

9 410(b)(6)(C), the amendments described in 

10 clause (i) shall not be treated as a signifi11 cant change in coverage under section 

12 410(b)(6)(C)(i)(II). 

13 ‘‘(iv) SPUN-OFF PLANS.—For pur14 poses of this subparagraph, if a portion of 

15 a plan described in clause (i) is spun off to 

16 another employer, the treatment under 

17 clause (i) of the spun-off plan shall con18 tinue with respect to the other employer.’’. 

19 (c) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section 

22 shall take effect on the date of the enactment of this 

23 Act, without regard to whether any plan modifica24 tions referred to in such amendments are adopted or 

25 effective before, on, or after such date of enactment. 


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1 (2) SPECIAL RULES.— 

2 (A) ELECTION OF EARLIER APPLICA3 TION.—At the election of the plan sponsor, the 

4 amendments made by this section shall apply to 

5 plan years beginning after December 31, 2013. 

6 (B) CLOSED CLASSES OF PARTICIPANTS.— 

7 For purposes of paragraphs (1)(A)(iii), 

8 (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 

9 of the Internal Revenue Code of 1986 (as added 

10 by this section), a closed class of participants 

11 shall be treated as being closed before Sep12 tember 21, 2016, if the plan sponsor’s intention 

13 to create such closed class is reflected in formal 

14 written documents and communicated to par15 ticipants before such date. 

16 (C) CERTAIN POST-ENACTMENT PLAN

17 AMENDMENTS.—A plan shall not be treated as 

18 failing to be eligible for the application of sec19 tion 401(o)(1)(A), 401(o)(1)(B)(iii), or 

20 401(a)(26) of such Code (as added by this sec21 tion) to such plan solely because in the case 

22 of— 

23 (i) such section 401(o)(1)(A), the plan 

24 was amended before the date of the enact25 ment of this Act to eliminate 1 or more 


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1 benefits, rights, or features, and is further 

2 amended after such date of enactment to 

3 provide such previously eliminated benefits, 

4 rights, or features to a closed class of par5 ticipants, or 

6 (ii) such section 401(o)(1)(B)(iii) or 

7 section 401(a)(26), the plan was amended 

8 before the date of the enactment of this 

9 Act to cease all benefit accruals, and is 

10 further amended after such date of enact11 ment to provide benefit accruals to a closed 

12 class of participants. 

13 Any such section shall only apply if the plan 

14 otherwise meets the requirements of such sec15 tion and in applying such section, the date the 

16 class of participants is closed shall be the effec17 tive date of the later amendment. 

18 SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

19 PLANS. 

20 (a) FLAT RATE PREMIUM.—Subparagraph (A) of 

21 section 4006(a)(3) of the Employee Retirement Income 

22 Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend23 ed— 


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1 (1) in clause (i), by striking ‘‘plan,’’ and insert2 ing ‘‘plan other than a CSEC plan (as defined in 

3 section 210(f)(1))’’; 

4 (2) in clause (v), by striking ‘‘or’’ at the end; 

5 (3) in clause (vi), by striking the period at the 

6 end and inserting ‘‘, or’’; and 

7 (4) by adding at the end the following new 

8 clause: 

9 ‘‘(vii) in the case of a CSEC plan (as 

10 defined in section 210(f)(1)), for plan 

11 years beginning after December 31, 2017, 

12 for each individual who is a participant in 

13 such plan during the plan year an amount 

14 equal to the sum of— 

15 ‘‘(I) the additional premium (if 

16 any) determined under subparagraph 

17 (E), and 

18 ‘‘(II) $19.’’. 

19 (b) VARIABLE RATE PREMIUM.— 

20 (1) UNFUNDED VESTED BENEFITS.— 

21 (A) IN GENERAL.—Subparagraph (E) of 

22 section 4006(a)(3) of the Employee Retirement 

23 Income Security Act of 1974 (29 U.S.C. 

24 1306(a)(3)) is amended by adding at the end 

25 the following new clause: 


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1 ‘‘(v) For purposes of clause (ii), in the 

2 case of a CSEC plan (as defined in section 

3 210(f)(1)), the term ‘unfunded vested ben4 efits’ means, for plan years beginning after 

5 December 31, 2017, the excess (if any) 

6 of— 

7 ‘‘(I) the funding liability of the 

8 plan as determined under section 

9 306(j)(5)(C) for the plan year by only 

10 taking into account vested benefits, 

11 over 

12 ‘‘(II) the fair market value of 

13 plan assets for the plan year which 

14 are held by the plan on the valuation 

15 date.’’. 

16 (B) CONFORMING AMENDMENT.—Clause 

17 (iii) of section 4006(a)(3)(E) of such Act (29 

18 U.S.C. 1306(a)(3)(E)) is amended by striking 

19 ‘‘For purposes’’ and inserting ‘‘Except as pro20 vided in clause (v), for purposes’’. 

21 (2) APPLICABLE DOLLAR AMOUNT.— 

22 (A) IN GENERAL.—Paragraph (8) of sec23 tion 4006(a) of such Act (29 U.S.C. 1306(a)) 

24 is amended by adding at the end the following 

25 new subparagraph: 


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1 ‘‘(E) CSEC PLANS.—In the case of a 

2 CSEC plan (as defined in section 210(f)(1)), 

3 the applicable dollar amount shall be $9.’’. 

4 (B) CONFORMING AMENDMENT.—Subpara5 graph (A) of section 4006(a)(8) of such Act (29 

6 U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 

7 and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 

8 TITLE III—BENEFITS RELATING 

9 TO UNITED STATES TAX COURT 

10 SEC. 301. THRIFT SAVINGS PLAN CONTRIBUTIONS FOR 

11 JUDGES IN THE FEDERAL EMPLOYEES RE12 TIREMENT SYSTEM. 

13 (a) IN GENERAL.—Subsection (j)(3)(B) of section 

14 7447 of the Internal Revenue Code of 1986 is amended 

15 to read as follows: 

16 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

17 JUDGE.—No contributions under section 

18 8432(c) of title 5, United States Code, shall be 

19 made for the benefit of a judge who has filed 

20 an election to receive retired pay under sub21 section (e).’’. 

22 (b) OFFSET.—Paragraph (3) of section 7447(j) of 

23 the Internal Revenue Code of 1986 is amended by adding 

24 at the end the following new subparagraph: 


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1 ‘‘(F) OFFSET.—In the case of a judge who 

2 receives a distribution from the Thrift Savings 

3 Plan and who later receives retired pay under 

4 subsection (d), the retired pay shall be offset by 

5 an amount equal to the amount of the distribu6 tion which represents the Government’s con7 tribution to the individual’s Thrift Savings Ac8 count during years of service as a full-time judi9 cial officer under the Federal Employees Retire10 ment System, without regard to earnings attrib11 utable to such amount. Where such an offset 

12 would exceed 50 percent of the retired pay to 

13 be received in the first year, the offset may be 

14 divided equally over the first 2 years in which 

15 the individual receives the annuity.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to basic pay earned while serving 

18 as a judge of the United States Tax Court on or after 

19 the date of the enactment of this Act. 

20 SEC. 302. CHANGE IN VESTING PERIOD FOR SURVIVOR AN21 NUITIES AND WAIVER OF VESTING PERIOD IN 

22 THE EVENT OF ASSASSINATION. 

23 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA24 TION.—Subsection (h) of section 7448 of the Internal Rev25 enue Code of 1986 is amended to read as follows: 


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1 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

2 ‘‘(1) IN GENERAL.— 

3 ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If 

4 a judge or magistrate judge of the Tax Court 

5 described in paragraph (2) is survived by a sur6 viving spouse but not by a dependent child, 

7 there shall be paid to such surviving spouse an 

8 annuity beginning with the day of the death of 

9 the judge or magistrate judge of the Tax Court 

10 or following the surviving spouse’s attainment 

11 of age 50, whichever is the later, in an amount 

12 computed as provided in subsection (m). 

13 ‘‘(B) ANNUITY TO SURVIVING SPOUSE AND

14 CHILD.—If a judge or magistrate judge of the 

15 Tax Court described in paragraph (2) is sur16 vived by a surviving spouse and dependent child 

17 or children, there shall be paid to such sur18 viving spouse an annuity, beginning on the day 

19 of the death of the judge or magistrate judge 

20 of the Tax Court, in an amount computed as 

21 provided in subsection (m), and there shall also 

22 be paid to or on behalf of each such child an 

23 immediate annuity equal to the lesser of— 

24 ‘‘(i) 10 percent of the average annual 

25 salary of such judge or magistrate judge of 


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1 the Tax Court (determined in accordance 

2 with subsection (m)), or 

3 ‘‘(ii) 20 percent of such average an4 nual salary, divided by the number of such 

5 children. 

6 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

7 CHILDREN.—If a judge or magistrate judge of 

8 the Tax Court described in paragraph (2) 

9 leaves no surviving spouse but leaves a sur10 viving dependent child or children, there shall 

11 be paid to or on behalf of each such child an 

12 immediate annuity equal to the lesser of— 

13 ‘‘(i) 20 percent of the average annual 

14 salary of such judge or magistrate judge of 

15 the Tax Court (determined in accordance 

16 with subsection (m)), or 

17 ‘‘(ii) 40 percent of such average an18 nual salary divided by the number of such 

19 children. 

20 ‘‘(2) COVERED JUDGES.—Paragraph (1) applies 

21 to any judge or magistrate judge of the Tax Court 

22 electing under subsection (b)— 

23 ‘‘(A) who dies while a judge or magistrate 

24 judge of the Tax Court after having rendered at 

25 least 18 months of civilian service computed as 


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1 prescribed in subsection (n), for the last 18 

2 months of which the salary deductions provided 

3 for by subsection (c)(1) or the deposits required 

4 by subsection (d) have actually been made or 

5 the salary deductions required by the civil serv6 ice retirement laws have actually been made, or 

7 ‘‘(B) who dies by assassination after hav8 ing rendered less than 18 months of civilian 

9 service computed as prescribed in subsection (n) 

10 if, for the period of such service, the salary de11 ductions provided for by subsection (c)(1) or 

12 the deposits required by subsection (d) have ac13 tually been made. 

14 ‘‘(3) TERMINATION OF ANNUITY.— 

15 ‘‘(A) SURVIVING SPOUSE.—The annuity 

16 payable to a surviving spouse under this sub17 section shall be terminable upon such surviving 

18 spouse’s death or such surviving spouse’s re19 marriage before attaining age 55. 

20 ‘‘(B) SURVIVING CHILD.—Any annuity 

21 payable to a child under this subsection shall be 

22 terminable upon the earliest of— 

23 ‘‘(i) the child attainment of age 18, 

24 ‘‘(ii) the child’s marriage, or 

25 ‘‘(iii) the child’s death, 


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1 except that if such child is incapable of self-sup2 port by reason of mental or physical disability 

3 the child’s annuity shall be terminable only 

4 upon death, marriage, or recovery from such 

5 disability. 

6 ‘‘(C) DEPENDENT CHILD AFTER DEATH

7 OF SURVIVING SPOUSE.—In case of the death of 

8 a surviving spouse of a judge or magistrate 

9 judge of the Tax Court leaving a dependent 

10 child or children of the judge or magistrate 

11 judge of the Tax Court surviving such spouse, 

12 the annuity of such child or children shall be 

13 recomputed and paid as provided in paragraph 

14 (1)(C). 

15 ‘‘(D) RECOMPUTATION WITH RESPECT TO

16 OTHER DEPENDENT CHILDREN.—In any case 

17 in which the annuity of a dependent child is 

18 terminated under this subsection, the annuities 

19 of any remaining dependent child or children 

20 based upon the service of the same judge or 

21 magistrate judge of the Tax Court shall be re22 computed and paid as though the child whose 

23 annuity was so terminated had not survived 

24 such judge. 


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1 ‘‘(E) SPECIAL RULE FOR ASSASSINATED

2 JUDGES.—In the case of a survivor of a judge 

3 or magistrate judge of the Tax Court described 

4 in paragraph (2)(B), there shall be deducted 

5 from the annuities otherwise payable under this 

6 section an amount equal to the amount of sal7 ary deductions that would have been made if 

8 such deductions had been made for 18 months 

9 prior to the death of the judge or magistrate 

10 judge of the Tax Court.’’. 

11 (b) DEFINITION OF ASSASSINATION.—Section 

12 7448(a) of the Internal Revenue Code of 1986 is amended 

13 by adding at the end the following new paragraph: 

14 ‘‘(10) The terms ‘assassinated’ and ‘assassina15 tion’ mean the killing of a judge or magistrate judge 

16 of the Tax Court that is motivated by the perform17 ance by the judge or magistrate judge of the Tax 

18 Court of his or her official duties.’’. 

19 (c) DETERMINATION OF ASSASSINATION.—Sub20 section (i) of section 7448 of the Internal Revenue Code 

21 of 1986 is amended— 

22 (1) by striking ‘‘OF DEPENDENCY AND DIS23 ABILITY.—Questions’’ and inserting ‘‘BY CHIEF

24 JUDGE.— 


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1 ‘‘(1) DEPENDENCY AND DISABILITY.—Ques2 tions’’; and 

3 (2) by adding at the end the following new 

4 paragraph: 

5 ‘‘(2) ASSASSINATION.—The chief judge shall 

6 determine whether the killing of a judge or mag7 istrate judge of the Tax Court was an assassination, 

8 subject to review only by the Tax Court. The head 

9 of any Federal agency that investigates the killing of 

10 a judge or magistrate judge of the Tax Court shall 

11 provide to the chief judge any information that 

12 would assist the chief judge in making such a deter13 mination.’’. 

14 (d) COMPUTATION OF ANNUITIES.—Subsection (m) 

15 of section 7448 of the Internal Revenue Code of 1986 is 

16 amended— 

17 (1) by striking ‘‘ANNUITIES.—The annuity’’ 

18 and inserting ‘‘ANNUITIES.— 

19 ‘‘(1) IN GENERAL.—The annuity’’; 

20 (2) by striking ‘‘the sum of (1) 1.5 percent’’ 

21 and inserting ‘‘the sum of— 

22 ‘‘(A) 1.5 percent’’; 

23 (3) by striking ‘‘and (2) three-fourths of 1 per24 cent’’ and inserting ‘‘and 

25 ‘‘(B) three-fourths of 1 percent’’; 


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1 (4) by striking ‘‘prior allowable service, except 

2 that’’ and inserting ‘‘prior allowable service, 

3 ‘‘except that’’; and 

4 (5) by adding at the end the following new 

5 paragraph: 

6 ‘‘(2) ASSASSINATED JUDGES AND MAGISTRATE

7 JUDGES OF THE TAX COURT.—In the case of a 

8 judge or magistrate judge of the Tax Court who is 

9 assassinated and who has served less than 18 

10 months, the annuity of the surviving spouse of such 

11 judge or magistrate judge of the Tax Court shall be 

12 based upon the average annual salary received by 

13 such judge or magistrate judge of the Tax Court for 

14 judicial service.’’. 

15 (e) OTHER BENEFITS.—Section 7448 of the Internal 

16 Revenue Code of 1986 is amended by adding at the end 

17 the following new subsection: 

18 ‘‘(u) OTHER BENEFITS IN CASE OF ASSASSINA19 TION.—In the case of a judge or magistrate judge of the 

20 Tax Court who is assassinated, an annuity shall be paid 

21 under this section notwithstanding a survivor’s eligibility 

22 for or receipt of benefits under chapter 81 of title 5, 

23 United States Code, except that the annuity for which a 

24 surviving spouse is eligible under this section shall be re25 duced to the extent that the total benefits paid under this 


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1 section and chapter 81 of that title for any year would 

2 exceed the current salary for that year of the office of the 

3 judge or magistrate judge of the Tax Court.’’. 

4 SEC. 303. COORDINATION OF RETIREMENT AND SURVIVOR 

5 ANNUITY WITH THE FEDERAL EMPLOYEES 

6 RETIREMENT SYSTEM. 

7 (a) RETIREMENT.—Section 7447 of the Internal Rev8 enue Code of 1986 is amended— 

9 (1) by striking ‘‘section 8331(8)’’ in subsection 

10 (g)(2)(C) and inserting ‘‘sections 8331(8) and 

11 8401(19)’’; and 

12 (2) by striking ‘‘Civil Service Commission’’ both 

13 places it appears in subsection (i)(2) and inserting 

14 ‘‘Office of Personnel Management’’. 

15 (b) ANNUITIES TO SURVIVING SPOUSES AND DE16 PENDENT CHILDREN.—Section 7448 of the Internal Rev17 enue Code of 1986 is amended— 

18 (1) by striking ‘‘section 8332’’ in subsection (d) 

19 and inserting ‘‘sections 8332 and 8411’’; and 

20 (2) by striking ‘‘section 8332’’ in subsection (n) 

21 and inserting ‘‘sections 8332 and 8411’’. 


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1 SEC. 304. LIMIT ON TEACHING COMPENSATION OF RE2 TIRED JUDGES. 

3 (a) IN GENERAL.—Section 7447 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(k) TEACHING COMPENSATION OF RETIRED

7 JUDGES.—For purposes of the limitation under section 

8 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

9 App.), any compensation for teaching approved under sec10 tion 502(a)(5) of such Act shall not be treated as outside 

11 earned income when received by a judge of the United 

12 States Tax Court who has retired under subsection (b) 

13 for teaching performed during any calendar year for which 

14 such a judge has met the requirements of subsection (c), 

15 as certified by the chief judge.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to any individual serving as a re18 tired judge of the United States Tax Court on or after 

19 the date of the enactment of this Act. 

20 SEC. 305. GENERAL PROVISIONS RELATING TO MAG21 ISTRATE JUDGES OF THE TAX COURT. 

22 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

23 MAGISTRATE JUDGE OF THE TAX COURT.—The heading 

24 of section 7443A of the Internal Revenue Code of 1986 

25 is amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 


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1 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

2 COURT’’. 

3 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub4 section (a) of section 7443A of the Internal Revenue Code 

5 of 1986 is amended to read as follows: 

6 ‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.— 

7 ‘‘(1) APPOINTMENT.—The chief judge may, 

8 from time to time, appoint and reappoint magistrate 

9 judges of the Tax Court for a term of 8 years. The 

10 magistrate judges of the Tax Court shall proceed 

11 under such rules as may be promulgated by the Tax 

12 Court. 

13 ‘‘(2) REMOVAL.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B), removal of a magistrate 

16 judge of the Tax Court during the term for 

17 which such magistrate judge is appointed shall 

18 be only for incompetency, misconduct, neglect 

19 of duty, or physical or mental disability. Re20 moval shall not occur unless a majority of all 

21 the judges of the Tax Court concur in the order 

22 of removal. Before any order of removal shall 

23 be entered, a full specification of the charges 

24 shall be furnished to the magistrate judge of 

25 the Tax Court, and such magistrate judge shall 


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1 be accorded by the judges of the Tax Court an 

2 opportunity to be heard on the charges. 

3 ‘‘(B) TERMINATION OF OFFICE.—The of4 fice of a magistrate judge of the Tax Court 

5 shall be terminated if the judges of the Tax 

6 Court determine that the services performed by 

7 such magistrate judge of the Tax Court are no 

8 longer needed.’’. 

9 (c) SALARY.—Subsection (d) of section 7443A of the 

10 Internal Revenue Code of 1986 is amended to read as fol11 lows: 

12 ‘‘(d) SALARY.—Each magistrate judge of the Tax 

13 Court shall receive salary— 

14 ‘‘(1) at a rate equal to 92 percent of the rate 

15 for judges of the Tax Court, and 

16 ‘‘(2) in the same installments as such judges.’’. 

17 (d) EXEMPTION FROM FEDERAL LEAVE PROVI18 SIONS.—Section 7443A of the Internal Revenue Code of 

19 1986 is amended by adding at the end the following new 

20 subsection: 

21 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI22 SIONS.— 

23 ‘‘(1) IN GENERAL.—A magistrate judge of the 

24 Tax Court shall be exempt from the provisions of 


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1 subchapter I of chapter 63 of title 5, United States 

2 Code. 

3 ‘‘(2) TREATMENT OF UNUSED LEAVE.— 

4 ‘‘(A) AFTER SERVICE AS MAGISTRATE

5 JUDGE OF THE TAX COURT.—If an individual 

6 who is exempted under paragraph (1) from the 

7 subchapter referred to in such paragraph was 

8 previously subject to such subchapter and, with9 out a break in service, again becomes subject to 

10 such subchapter on completion of the individ11 ual’s service as a magistrate judge of the Tax 

12 Court, the unused annual leave and sick leave 

13 standing to the individual’s credit at the time 

14 such individual became a magistrate judge of 

15 the Tax Court is deemed to have remained to 

16 the individual’s credit. 

17 ‘‘(B) COMPUTATION OF ANNUITY.—In 

18 computing an annuity under section 8339 or 

19 8415 of title 5, United States Code, the total 

20 service of an individual specified in subpara21 graph (A) who retires on an immediate annuity 

22 or dies leaving a survivor or survivors entitled 

23 to an annuity includes, without regard to the 

24 limitations imposed by subsection (f) of section 

25 8339 of such title 5, the days of unused sick 


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1 leave standing to the individual’s credit at the 

2 time such individual became a magistrate judge 

3 of the Tax Court, except that such days will not 

4 be counted in determining average pay or annu5 ity eligibility. 

6 ‘‘(C) LUMP SUM PAYMENT.—Any accumu7 lated and current accrued annual leave or vaca8 tion balances credited to a magistrate judge of 

9 the Tax Court as of the date of the enactment 

10 of this subsection shall be paid in a lump sum 

11 at the time of separation from service pursuant 

12 to the provisions and restrictions set forth in 

13 section 5551 of such title 5 and related provi14 sions referred to in such section.’’. 

15 (e) CONTEMPT AUTHORITY.—Section 7443A of the 

16 Internal Revenue Code of 1986, as amended by this sec17 tion, is amended by adding at the end the following new 

18 subsection: 

19 ‘‘(g) INCIDENTAL POWERS.—A magistrate judge of 

20 the Tax Court appointed under this section shall have the 

21 power to punish for contempt of the authority of the Tax 

22 Court as provided in section 7456(c), except the sentence 

23 imposed by such a magistrate judge of the Tax Court for 

24 any contempt shall not exceed the penalties for a Class 

25 C misdemeanor as set forth in sections 3571(b)(6) and 


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1 3581(b)(8) of title 18, United States Code. This sub2 section shall not be construed to limit the authority of a 

3 magistrate judge of the Tax Court to order sanctions 

4 under any other statute or any rule of the Tax Court pre5 scribed pursuant to section 7453.’’. 

6 (f) CONFORMING AMENDMENTS.— 

7 (1) The heading of subsection (b) of section 

8 7443A of the Internal Revenue Code of 1986 is 

9 amended by striking ‘‘SPECIAL TRIAL JUDGES’’ and 

10 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

11 COURT’’. 

12 (2) Subsection (b) of section 7443A of such 

13 Code is amended by striking ‘‘special trial judges of 

14 the court’’ and inserting ‘‘magistrate judges of the 

15 Tax Court’’. 

16 (3) Subsection (c) of section 7443A of such 

17 Code is amended by striking ‘‘special trial judge’’ 

18 and inserting ‘‘magistrate judge of the Tax Court’’. 

19 (4) Subsection (e) of section 7443A of such 

20 Code is amended by striking ‘‘special trial judges’’ 

21 and inserting ‘‘magistrate judges of the Tax Court’’. 

22 (5) The item relating to section 7443A in the 

23 table of sections for part I of subchapter C of chap24 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7443A. Magistrate judges of the Tax Court.’’. 


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1 (6) The heading of section 7448 of such Code 

2 is amended by striking ‘‘SPECIAL TRIAL

3 JUDGES’’and inserting ‘‘MAGISTRATE JUDGES

4 OF THE TAX COURT’’. 

5 (7) Section 7448 of such Code is amended— 

6 (A) by striking ‘‘special trial judge’s’’ each 

7 place it appears in subsections (a)(6), (c)(1), 

8 (d), and (m)(1) and inserting ‘‘magistrate judge 

9 of the Tax Court’s’’; and 

10 (B) by striking ‘‘special trial judge’’ each 

11 place it appears other than in subsection (n) 

12 and inserting ‘‘magistrate judge of the Tax 

13 Court’’. 

14 (8) Subsection (n) of section 7448 of such Code 

15 is amended to read as follows: 

16 ‘‘(n) INCLUDIBLE SERVICE.—Subject to the provi17 sions of subsection (d), the years of service of a judge or 

18 magistrate judge of the Tax Court which are allowable as 

19 the basis for calculating the amount of the annuity of such 

20 judge or magistrate judge’s surviving spouse shall include 

21 the judge or magistrate judge’s years of service— 

22 ‘‘(1) as a judge or magistrate judge of the Tax 

23 Court, a special trial judge of the Tax Court, or a 

24 judge of the Tax Court of the United States, 


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1 ‘‘(2) pursuant to any appointment under sec2 tion 7443A, 

3 ‘‘(3) as a Senator, Representative, Delegate, or 

4 Resident Commissioner in Congress, 

5 ‘‘(4) as a member of the Armed Forces of the 

6 United States (not including any service for which 

7 credit is allowed for purposes of retirement or re8 tired pay under any other provision of law), and 

9 ‘‘(5) in any other civilian service within the pur10 view of section 8332 of title 5, United States Code. 

11 For purposes of paragraph (4), not more than 5 years of 

12 service shall be taken into account.’’. 

13 (9) The item relating to section 7448 in the 

14 table of sections for part I of subchapter C of chap15 ter 76 of such Code is amended to read as follows: 

‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges 

and magistrate judges of the Tax Court.’’. 

16 (10) Subsection (a) of section 7456 of such 

17 Code is amended— 

18 (A) by striking ‘‘special trial judge’’ each 

19 place it appears and inserting ‘‘magistrate 

20 judge’’, and 

21 (B) by striking ‘‘(or by the clerk’’ and in22 serting ‘‘of the Tax Court (or by the clerk’’. 


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1 (11) Subsection (a) of section 7466 of such 

2 Code is amended by striking ‘‘special trial judge’’ 

3 and inserting ‘‘magistrate judge’’. 

4 (12) Section 7470A of such Code is amended 

5 by striking ‘‘special trial judges’’ both places it ap6 pears in subsections (a) and (b) and inserting ‘‘mag7 istrate judges’’. 

8 (13) Subparagraph (A) of section 7471(a)(2) of 

9 such Code is amended by striking ‘‘special trial 

10 judges’’ and inserting ‘‘magistrate judges’’. 

11 (14) Subsection (c) of section 7471 of such 

12 Code is amended— 

13 (A) by striking ‘‘SPECIAL TRIAL JUDGES’’ 

14 in the heading and inserting ‘‘MAGISTRATE

15 JUDGES OF THE TAX COURT’’; and 

16 (B) by striking ‘‘special trial judges’’ and 

17 inserting ‘‘magistrate judges’’. 

18 (g) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—The amendments made by 

20 this section shall apply to individuals serving as spe21 cial trial judges of the United States Tax Court on 

22 or after the day before the date of enactment of this 

23 Act. 

24 (2) APPOINTMENT SAVINGS PROVISION.—Any 

25 individual serving as a special trial judge of the 


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1 United States Tax Court as of the day before the 

2 date of the enactment of this Act shall be considered 

3 to have been appointed as a magistrate judge of the 

4 Tax Court under section 7443A of the Internal Rev5 enue Code of 1986 on such date of enactment, and 

6 service as a special trial judge of the Tax Court be7 fore such date of enactment shall be considered to 

8 be service as a magistrate judge of the Tax Court 

9 for purposes of any provision of law relating to 

10 length of service. 

11 SEC. 306. LIFE INSURANCE FOR MAGISTRATE JUDGES OF 

12 THE TAX COURT AGE 65 OR OLDER. 

13 Section 7472 of the Internal Revenue Code of 1986 

14 is amended by striking ‘‘its judges’’ in the second sentence 

15 and inserting ‘‘the judges and magistrate judges of the 

16 Tax Court’’. 

17 SEC. 307. RETIREMENT AND ANNUITY PROGRAM. 

18 (a) RETIREMENT AND ANNUITY PROGRAM.—Part I 

19 of subchapter C of chapter 76 of the Internal Revenue 

20 Code of 1986 is amended by inserting after section 7443A 

21 the following new section: 

22 ‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF 

23 THE TAX COURT. 

24 ‘‘(a) RETIREMENT.— 


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1 ‘‘(1) IN GENERAL.—Each magistrate judge of 

2 the Tax Court who makes an election under this sec3 tion shall receive an annuity at the same rate and 

4 in the same manner as magistrate judges of the dis5 trict courts of the United States pursuant to section 

6 377 of title 28, United States Code. 

7 ‘‘(2) RULES OF APPLICATION.—For purposes of 

8 subsection (a), section 377 of title 28, United States 

9 Code, shall be applied with the following modifica10 tions: 

11 ‘‘(A) By substituting— 

12 ‘‘(i) ‘magistrate judge of the Tax 

13 Court’ for ‘judicial official’, ‘judicial offi14 cer’, and ‘magistrate judge’ each place 

15 such terms appear, 

16 ‘‘(ii) ‘magistrate judge of the Tax 

17 Court’s’ for ‘magistrate judge’s’ each place 

18 it appears, 

19 ‘‘(iii) ‘chief judge of the Tax Court’ 

20 for ‘Administrative Office of the United 

21 States Courts’, ‘Director of the Adminis22 trative Office of the United States Courts’, 

23 ‘Director’, and ‘chief judge of the district 

24 court’ each place such terms appear, 


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1 ‘‘(iv) ‘Tax Court Judicial Officers’ Re2 tirement Fund’ for ‘Judicial Officers’ Re3 tirement Fund’ each place it appears, 

4 ‘‘(v) ‘under section 7443A of the In5 ternal Revenue Code of 1986’ for ‘under 

6 section 631 of this title’ in subsection 

7 (h)(2), 

8 ‘‘(vi) ‘under section 7443C of the In9 ternal Revenue Code of 1986’ for ‘under 

10 section 155(b), 375, or 636(h) of this title’ 

11 each place it appears in paragraphs (2) 

12 and (3) of subsection (m), and 

13 ‘‘(vii) ‘from the date of appointment, 

14 for those individuals appointed pursuant to 

15 section 7443A of the Internal Revenue 

16 Code of 1986 prior to, and in active service 

17 on, the date of enactment of the Retire18 ment Enhancement and Savings Act of 

19 2018’ for ‘on or after October 1, 1979’ in 

20 subsection (h). 

21 ‘‘(B) By disregarding subsection (m)(2) 

22 and subsection (o). 

23 ‘‘(b) 1-YEAR FORFEITURE FOR FAILURE TO PER24 FORM JUDICIAL DUTIES.—Subject to subparagraph (B) 

25 of section 377(m)(1) of title 28, United States Code, any 


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1 magistrate judge of the Tax Court who retires under this 

2 section and who fails to perform judicial duties required 

3 of such individual by section 7443C shall forfeit all rights 

4 to an annuity under this section for a 1-year period which 

5 begins on the 1st day on which such individual fails to 

6 perform such duties. 

7 ‘‘(c) TAX COURT JUDICIAL OFFICERS’ RETIREMENT

8 FUND.— 

9 ‘‘(1) ESTABLISHMENT.—There is established in 

10 the Treasury of the United States a fund which 

11 shall be known as the ‘Tax Court Judicial Officers’ 

12 Retirement Fund’. The Fund is appropriated for the 

13 payment of annuities, refunds, and other payments 

14 under this section. 

15 ‘‘(2) INVESTMENT OF FUND.—The Secretary 

16 shall invest, in interest-bearing securities of the 

17 United States, such currently available portions of 

18 the Tax Court Judicial Officers’ Retirement Fund as 

19 are not immediately required for payments from the 

20 Fund. The income derived from these investments 

21 constitutes a part of the Fund. 

22 ‘‘(3) UNFUNDED LIABILITY.— 

23 ‘‘(A) IN GENERAL.—Not later than the 

24 close of each fiscal year, there shall be depos25 ited in the Tax Court Judicial Officers’ RetireVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 ment Fund amounts required to reduce to zero 

2 the unfunded liability, if any, of such Fund. 

3 ‘‘(B) UNFUNDED LIABILITY.—For pur4 poses of subparagraph (A), the term ‘unfunded 

5 liability’ means the amount estimated by the 

6 Secretary to be equal to the excess (as of the 

7 close of the fiscal year involved) of— 

8 ‘‘(i) the present value of all benefits 

9 payable from the Tax Court Judicial Offi10 cers’ Retirement Fund, over 

11 ‘‘(ii) the sum of— 

12 ‘‘(I) the present value of future 

13 deductions to be withheld under this 

14 section from the basic pay of mag15 istrate judges of the Tax Court, plus 

16 ‘‘(II) the balance in such Fund 

17 as of the close of such fiscal year. 

18 ‘‘(d) PARTICIPATION IN THRIFT SAVINGS PLAN.— 

19 ‘‘(1) ELECTION TO CONTRIBUTE.—A mag20 istrate judge of the Tax Court may elect to con21 tribute out of such individual’s basic pay to the 

22 Thrift Savings Fund established by section 8437 of 

23 title 5, United States Code. 

24 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— 

25 Except as otherwise provided in this subsection, the 


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1 provisions of subchapters III and VII of chapter 84 

2 of such title 5 shall apply with respect to a mag3 istrate judge of the Tax Court who makes an elec4 tion under paragraph (1). 

5 ‘‘(3) SPECIAL RULES.— 

6 ‘‘(A) AMOUNT CONTRIBUTED.—The 

7 amount contributed by a magistrate judge of 

8 the Tax Court to the Thrift Savings Plan in 

9 any pay period shall not exceed the maximum 

10 percentage of such magistrate judge’s basic pay 

11 for such period as allowable under section 

12 8440f of such title 5. 

13 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

14 MAGISTRATE JUDGE OF THE TAX COURT.—No 

15 contributions under section 8432(c) of such 

16 title 5 shall be made for the benefit of a mag17 istrate judge of the Tax Court who has filed an 

18 election to receive an annuity under this sec19 tion. 

20 ‘‘(C) APPLICABILITY OF RULES RELATING

21 TO ANNUITY OF A CHILD.—Section 8433(b) of 

22 such title 5 applies with respect to a magistrate 

23 judge of the Tax Court who makes an election 

24 under paragraph (1) and who— 


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1 ‘‘(i) retires entitled to an immediate 

2 annuity under this section (including a dis3 ability annuity under this section), 

4 ‘‘(ii) retires before attaining age 65 

5 but is entitled, upon attaining age 65, to 

6 an annuity under this section, or 

7 ‘‘(iii) retires before becoming entitled 

8 to an immediate annuity, or an annuity 

9 upon attaining age 65, under this section. 

10 ‘‘(D) RETIREMENT AS SEPARATION FROM

11 SERVICE.—With respect to a magistrate judge 

12 of the Tax Court to whom this subsection ap13 plies, retirement under this section is a separa14 tion from service for purposes of subchapters 

15 III and VII of chapter 84 of such title 5. 

16 ‘‘(4) DEFINITIONS.—For purposes of this sub17 section, the terms ‘retirement’ and ‘retire’ include 

18 removal from office under section 7443A(a)(2) on 

19 the sole ground of mental or physical disability. 

20 ‘‘(5) OFFSET.—In the case of a magistrate 

21 judge of the Tax Court who receives a distribution 

22 from the Thrift Savings Plan and who later receives 

23 an annuity under this section, the annuity shall be 

24 offset by an amount equal to the amount which rep25 resents the Government’s contribution to the individVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 ual’s Thrift Savings Account during years of service 

2 as a full-time judicial officer under the Federal Em3 ployees Retirement System, without regard to earn4 ings attributable to such amount. Where such an 

5 offset would exceed 50 percent of the annuity to be 

6 received in the first year, the offset may be divided 

7 equally over the first 2 years in which the individual 

8 receives the annuity. 

9 ‘‘(6) EXCEPTION.—Notwithstanding clauses (i) 

10 and (ii) of paragraph (3)(C), if any magistrate judge 

11 of the Tax Court retires under circumstances mak12 ing such magistrate judge of the Tax Court eligible 

13 to make an election under subsection (b) of section 

14 8433 of such title 5, and the nonforfeitable account 

15 balance of such magistrate judge of the Tax Court 

16 is less than an amount which the Executive Director 

17 of the Office of Personnel Management prescribes by 

18 regulation, the Executive Director shall pay the non19 forfeitable account balance to the participant in a 

20 single payment. 

21 ‘‘(e) COORDINATION WITH TITLE 5.—A magistrate 

22 judge of the Tax Court who elects to receive an annuity 

23 under this section— 


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1 ‘‘(1) shall not be subject to deductions and con2 tributions otherwise required by section 8334(a) of 

3 title 5 United States Code, 

4 ‘‘(2) shall be excluded from the application of 

5 chapter 84 (other than subchapters III and VII) of 

6 such title 5, and 

7 ‘‘(3) is entitled to a lump-sum credit under sec8 tion 8342(a) or 8424 of such title 5, as the case 

9 may be.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 3121(b)(5)(E) of the Internal Rev12 enue Code of 1986 is amended by inserting ‘‘or 

13 magistrate judge’’ before ‘‘of the United States Tax 

14 Court’’. 

15 (2) Section 210(a)(5)(E) of the Social Security 

16 Act (42 U.S.C. 410(a)(5)(E)) is amended by insert17 ing ‘‘or a magistrate judge of the Tax Court who 

18 files an election under section 7443B(a) of the Inter19 nal Revenue Code of 1986’’ after ‘‘of the United 

20 States Tax Court’’. 

21 (3) Section 7448(b)(2) of the Internal Revenue 

22 Code of 1986 is amended to read as follows: 

23 ‘‘(2) MAGISTRATE JUDGES OF THE TAX

24 COURT.—Any magistrate judge of the Tax Court 

25 may by written election filed with the chief judge 


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1 bring himself or herself within the purview of this 

2 section. Such election shall be filed while such indi3 vidual is a magistrate judge of the Tax Court.’’. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 for part I of subchapter C of chapter 76 of the Internal 

6 Revenue Code of 1986 is amended by inserting after the 

7 item relating to section 7443A the following new item: 

‘‘Sec. 7443B. Retirement for magistrate judges of the Tax Court.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect on the date of the enactment 

10 of this Act. 

11 SEC. 308. PROVISIONS FOR RECALL. 

12 (a) IN GENERAL.—Part I of subchapter C of chapter 

13 76 of the Internal Revenue Code of 1986, as amended by 

14 section 307, is amended by inserting after section 7443B 

15 the following new section: 

16 ‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 

17 COURT. 

18 ‘‘(a) RECALLING OF RETIRED MAGISTRATE JUDGES

19 OF THE TAX COURT.—Any individual who has retired 

20 pursuant to section 7443B or the applicable provisions of 

21 title 5 or 28, United States Code, upon reaching the age 

22 and service requirements established under such titles 5 

23 and 28, may be called upon by the chief judge to perform 

24 such judicial duties with the Tax Court as may be re25 quested of such individual for a period or periods specified 


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1 by the chief judge, except that in the case of any such 

2 individual— 

3 ‘‘(1) the aggregate of such periods in any 1 cal4 endar year shall not (without the consent of such in5 dividual) exceed 90 calendar days, and 

6 ‘‘(2) such individual shall be relieved of per7 forming such duties during any period in which ill8 ness or disability precludes the performance of such 

9 duties. 

10 Any act, or failure to act, by an individual performing ju11 dicial duties pursuant to this subsection shall have the 

12 same force and effect as if it were the act (or failure to 

13 act) of a magistrate judge of the Tax Court. 

14 ‘‘(b) COMPENSATION.—For the year in which a pe15 riod of recall occurs, the magistrate judge of the Tax 

16 Court shall receive, in addition to the annuity provided 

17 under the provisions of section 7443B, an amount equal 

18 to the difference between that annuity and the current sal19 ary of the office to which the magistrate judge of the Tax 

20 Court is recalled (and allowances for travel and other ex21 penses of the magistrate judge of the Tax Court). The 

22 annuity for years after the year in which a period of recall 

23 occurs of the magistrate judge of the Tax Court who com24 pletes such a period of service, who is not recalled in a 

25 subsequent year, and who retired under section 7443B, 


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1 shall be equal to the salary in effect at the end of the 

2 year in which the period of recall occurred for the office 

3 from which such magistrate judge of the Tax Court re4 tired. 

5 ‘‘(c) RULEMAKING AUTHORITY.—The provisions of 

6 this section shall be implemented under such rules and 

7 regulations as may be promulgated by the Tax Court.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections 

9 for part I of subchapter C of chapter 76 of the Internal 

10 Revenue Code of 1986, as amended by section 307, is 

11 amended by inserting after the item relating to section 

12 7443B the following new item: 

‘‘Sec. 7443C. Recall of magistrate judges of the Tax Court.’’. 

13 TITLE IV—OTHER BENEFITS 

14 SEC. 401. BENEFITS PROVIDED TO VOLUNTEER FIRE15 FIGHTERS AND EMERGENCY MEDICAL RE16 SPONDERS. 

17 (a) INCREASE IN DOLLAR LIMITATION ON QUALI18 FIED PAYMENTS.—Subparagraph (B) of section 

19 139B(c)(2) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘$30’’ and inserting ‘‘$50’’. 

21 (b) EXTENSION.—Subsection (d) of section 139B of 

22 the Internal Revenue Code of 1986 is amended by striking 

23 ‘‘beginning after December 31, 2010.’’ and inserting ‘‘be24 ginning— 


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1 ‘‘(1) after December 31, 2010, and before Jan2 uary 1, 2019, or 

3 ‘‘(2) after December 31, 2019.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2018. 

7 TITLE V—REVENUE PROVISIONS 

8 SEC. 501. MODIFICATIONS OF REQUIRED DISTRIBUTION 

9 RULES FOR PENSION PLANS. 

10 (a) MODIFICATION OF RULES WHERE EMPLOYEE

11 DIES BEFORE ENTIRE DISTRIBUTION.— 

12 (1) IN GENERAL.—Section 401(a)(9) of the In13 ternal Revenue Code of 1986 is amended by adding 

14 at the end the following new subparagraph 

15 ‘‘(H) SPECIAL RULES FOR CERTAIN DE16 FINED CONTRIBUTION PLANS.— 

17 ‘‘(i) IN GENERAL.—In the case of dis18 tributions from a defined contribution 

19 plan, a trust forming part of such plan 

20 shall not constitute a qualified trust under 

21 this section unless the plan provides that, 

22 if— 

23 ‘‘(I) an employee dies before the 

24 distribution of the employee’s interest 

25 (whether or not such distribution has 


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1 begun in accordance with subpara2 graph (A)), and 

3 ‘‘(II) the aggregate account bal4 ances to the credit of the employee 

5 under all defined contribution plans, 

6 determined as of the date of the em7 ployee’s death, exceeds $450,000, 

8 so much of the entire interest of the em9 ployee as exceeds the dollar amount in sub10 clause (II) will be distributed within 5 

11 years after the death of such employee. 

12 ‘‘(ii) ALLOCATION OF LIMITATION.—If 

13 an employee has an account under more 

14 than 1 defined contribution plan, the 

15 $450,000 amount under clause (i)(II) shall 

16 be allocated among all such plans, as pro17 vided in regulations prescribed by the Sec18 retary, for purposes of applying clause (i). 

19 ‘‘(iii) TREATMENT OF REMAINING

20 AMOUNT.—The portion of the employee’s 

21 interest distributed under clause (i) shall 

22 not be taken into account for purposes of 

23 determining the rapidity or the method of 

24 distribution of any portion of the interest 


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1 of the employee to which clause (i) does 

2 not apply. 

3 ‘‘(iv) MULTIPLE BENEFICIARIES.—In 

4 the case of an employee who has more 

5 than 1 beneficiary, the amount of the por6 tion required to be distributed under clause 

7 (i) which shall be treated as payable to (or 

8 for the benefit of) such beneficiary is the 

9 amount which bears the same ratio to the 

10 total amount of such portion as— 

11 ‘‘(I) the portion of the employee’s 

12 entire interest (determined as of the 

13 date of the employee’s death) which is 

14 payable to (or for the benefit of) such 

15 beneficiary, bears to 

16 ‘‘(II) the amount of the employ17 ee’s entire interest (so determined). 

18 ‘‘(v) EXCEPTION FOR ELIGIBLE DES19 IGNATED BENEFICIARIES.—If— 

20 ‘‘(I) any portion of the employ21 ee’s interest is payable to (or for the 

22 benefit of) an eligible designated bene23 ficiary, 

24 ‘‘(II) such portion will be distrib25 uted (in accordance with regulations) 


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1 over the life of such eligible des2 ignated beneficiary (or over a period 

3 not extending beyond the life expect4 ancy of such beneficiary), and 

5 ‘‘(III) such distributions begin 

6 not later than 1 year after the date of 

7 the employee’s death or such later 

8 date as the Secretary may by regula9 tions prescribe, 

10 for purposes of clause (i), the portion re11 ferred to in subclause (I) shall be treated 

12 as distributed on the date on which such 

13 distributions begin. 

14 ‘‘(vi) SPECIAL RULE FOR SURVIVING

15 SPOUSE OF EMPLOYEE.—If the eligible 

16 designated beneficiary is the surviving 

17 spouse of the employee— 

18 ‘‘(I) the date on which the dis19 tributions are required to begin under 

20 clause (v)(III) shall not be earlier 

21 than the date on which the employee 

would have attained age 701 22 ⁄2, and 

23 ‘‘(II) if the surviving spouse dies 

24 before the distributions to such spouse 

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1 plied as if the surviving spouse were 

2 the employee. 

3 ‘‘(vii) RULES UPON DEATH OF ELIGI4 BLE DESIGNATED BENEFICIARY.—If an el5 igible designated beneficiary dies before the 

6 portion of the employee’s interest to which 

7 clause (i) applies which is payable to (or 

8 for the benefit of) such eligible designated 

9 beneficiary is entirely distributed, the ex10 ception under clause (v) shall not apply to 

11 any beneficiary of such eligible designated 

12 beneficiary and the remainder of such por13 tion shall be distributed within 5 years 

14 after the death of such beneficiary. 

15 ‘‘(viii) COORDINATION WITH INDI16 VIDUAL RETIREMENT PLANS.—For pur17 poses of applying the provisions of this 

18 subparagraph and subsections (a)(6) and 

19 (b)(3) of section 408, individual retirement 

20 plans shall be treated as defined contribu21 tion plans in determining the aggregate ac22 count balances to the credit of the em23 ployee under all defined contribution plans 

24 and the amount required to be distributed 


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1 to each beneficiary under such provi2 sions.’’. 

3 (2) DEFINITION OF ELIGIBLE DESIGNATED

4 BENEFICIARY.—Section 401(a)(9)(E) of such Code 

5 is amended to read as follows: 

6 ‘‘(E) DEFINITIONS AND RULES RELATING

7 TO DESIGNATED BENEFICIARY.—For purposes 

8 of this paragraph— 

9 ‘‘(i) DESIGNATED BENEFICIARY.—The 

10 term ‘designated beneficiary’ means any 

11 individual designated as a beneficiary by 

12 the employee. 

13 ‘‘(ii) ELIGIBLE DESIGNATED BENE14 FICIARY.—The term ‘eligible designated 

15 beneficiary’ means, with respect to any em16 ployee, any designated beneficiary who is— 

17 ‘‘(I) the surviving spouse of the 

18 employee, 

19 ‘‘(II) subject to clause (iii), a 

20 child of the employee who has not 

21 reached majority (within the meaning 

22 of subparagraph (F)), 

23 ‘‘(III) disabled (within the mean24 ing of section 72(m)(7)), 


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1 ‘‘(IV) a chronically ill individual 

2 (within the meaning of section 

3 7702B(c)(2), except that the require4 ments of subparagraph (A)(i) thereof 

5 shall only be treated as met if there is 

6 a certification that, as of such date, 

7 the period of inability described in 

8 such subparagraph with respect to the 

9 individual is an indefinite one which is 

10 reasonably expected to be lengthy in 

11 nature), or 

12 ‘‘(V) an individual not described 

13 in any of the preceding subclauses 

14 who is not more than 10 years young15 er than the employee. 

16 ‘‘(iii) SPECIAL RULE FOR CHIL17 DREN.—Subject to subparagraph (F), an 

18 individual described in clause (ii)(II) shall 

19 cease to be an eligible designated bene20 ficiary as of the date the individual reaches 

21 majority and any remainder of the portion 

22 of the interest described in subparagraph 

23 (H)(v) shall be distributed within 5 years 

24 after such date. 


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1 ‘‘(iv) TIME FOR DETERMINATION OF

2 ELIGIBLE DESIGNATED BENEFICIARY.— 

3 The determination of whether a designated 

4 beneficiary is an eligible designated bene5 ficiary shall be made as of the date of 

6 death of the employee.’’. 

7 (3) CONFORMING AMENDMENTS.— 

8 (A) Clause (ii) of section 401(a)(9)(B) of 

9 the Internal Revenue Code of 1986 is amended 

10 by striking ‘‘A trust’’ and inserting ‘‘Except as 

11 provided in subparagraph (H), a trust’’. 

12 (B) Section 402(c)(11)(A)(iii) of such 

13 Code is amended by striking ‘‘section 

14 401(a)(9)(B) (other than clause (iv) thereof)’’ 

15 and inserting ‘‘subparagraphs (B) (other than 

16 clause (iv) thereof) and (H) (other than clause 

17 (vi) thereof) of section 401(a)(9)’’. 

18 (4) EFFECTIVE DATES.— 

19 (A) IN GENERAL.—Except as provided in 

20 this paragraph and paragraphs (5) and (6), the 

21 amendments made by this subsection shall 

22 apply to distributions with respect to employees 

23 who die after December 31, 2018. 

24 (B) COLLECTIVE BARGAINING EXCEP25 TION.—In the case of a plan maintained pursuVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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•S 2526 IS

1 ant to 1 or more collective bargaining agree2 ments between employee representatives and 1 

3 or more employers ratified before the date of 

4 enactment of this Act, the amendments made 

5 by this subsection shall apply to distributions 

6 with respect to employees who die in calendar 

7 years beginning after the earlier of— 

8 (i) the later of— 

9 (I) the date on which the last of 

10 such collective bargaining agreements 

11 terminates (determined without re12 gard to any extension thereof agreed 

13 to on or after the date of the enact14 ment of this Act); or 

15 (II) December 31, 2018; or 

16 (ii) December 31, 2020. 

17 For purposes of clause (i)(I), any plan amend18 ment made pursuant to a collective bargaining 

19 agreement relating to the plan which amends 

20 the plan solely to conform to any requirement 

21 added by this section shall not be treated as a 

22 termination of such collective bargaining agree23 ment. 

24 (C) GOVERNMENTAL PLANS.—In the case 

25 of a governmental plan (as defined in section 


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•S 2526 IS

1 414(d) of the Internal Revenue Code of 1986), 

2 subparagraph (A) shall be applied by sub3 stituting ‘‘December 31, 2020’’ for ‘‘December 

4 31, 2018’’. 

5 (5) EXCEPTION FOR CERTAIN EXISTING ANNU6 ITY CONTRACTS.— 

7 (A) IN GENERAL.—The amendments made 

8 by this subsection shall not apply to a qualified 

9 annuity which is a binding annuity contract in 

10 effect on the date of enactment of this Act and 

11 at all times thereafter. 

12 (B) QUALIFIED ANNUITY.—For purposes 

13 of this paragraph, the term ‘‘qualified annuity’’ 

14 means, with respect to an employee, an annu15 ity— 

16 (i) which is a commercial annuity (as 

17 defined in section 3405(e)(6) of the Inter18 nal Revenue Code of 1986); 

19 (ii) under which the annuity payments 

20 are made over the life of the employee or 

21 over the joint lives of such employee and a 

22 designated beneficiary (or over a period 

23 not extending beyond the life expectancy of 

24 such employee or the joint life expectancy 

25 of such employee and a designated beneVerDate Sep 11 2014 04:11 Mar 15, 2018 Jkt 079200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\S2526.IS S2526

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1 ficiary) in accordance with the regulations 

2 described in section 401(a)(9)(A)(ii) of 

3 such Code (as in effect before such amend4 ments) and which meets the other require5 ments of section 401(a)(9) of such Code 

6 (as so in effect) with respect to such pay7 ments; and 

8 (iii) with respect to which— 

9 (I) annuity payments to the em10 ployee have begun before the date of 

11 enactment of this Act, and the em12 ployee has made an irrevocable elec13 tion before such date as to the method 

14 and amount of the annuity payments 

15 to the employee or any designated 

16 beneficiaries; or 

17 (II) if subclause (I) does not 

18 apply, the employee has made an ir19 revocable election before the date of 

20 enactment of this Act as to the meth21 od and amount of the annuity pay22 ments to the employee or any des23 ignated beneficiaries. 

24 (6) EXCEPTION FOR CERTAIN BENE25 FICIARIES.— 


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1 (A) IN GENERAL.—If an employee dies be2 fore the effective date, then, in applying the 

3 amendments made by this subsection to such 

4 employee’s designated beneficiary who dies after 

5 such date— 

6 (i) such amendments shall apply to 

7 any beneficiary of such designated bene8 ficiary; and 

9 (ii) the designated beneficiary shall be 

10 treated as an eligible designated bene11 ficiary for purposes of applying section 

12 401(a)(9)(H)(iv) of the Internal Revenue 

13 Code of 1986 (as in effect after such 

14 amendments). 

15 (B) EFFECTIVE DATE.—For purposes of 

16 this paragraph, the term ‘‘effective date’’ means 

17 the first day of the first calendar year to which 

18 the amendments made by this subsection apply 

19 to a plan with respect to employees dying on or 

20 after such date. 

21 (b) PROVISIONS RELATING TO PLAN AMEND22 MENTS.— 

23 (1) IN GENERAL.—If this subsection applies to 

24 any plan amendment— 


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1 (A) such plan shall be treated as being op2 erated in accordance with the terms of the plan 

3 during the period described in paragraph 

4 (2)(B)(i); and 

5 (B) except as provided by the Secretary of 

6 the Treasury, such plan shall not fail to meet 

7 the requirements of section 411(d)(6) of the In8 ternal Revenue Code of 1986 and section 

9 204(g) of the Employee Retirement Income Se10 curity Act of 1974 by reason of such amend11 ment. 

12 (2) AMENDMENTS TO WHICH SUBSECTION AP13 PLIES.— 

14 (A) IN GENERAL.—This subsection shall 

15 apply to any amendment to any plan or which 

16 is made— 

17 (i) pursuant to any amendment made 

18 by this section or pursuant to any regula19 tion issued by the Secretary of the Treas20 ury under this section or such amend21 ments; and 

22 (ii) on or before the last day of the 

23 first plan year beginning after December 

24 31, 2020, or such later date as the Sec25 retary of the Treasury may prescribe. 


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1 In the case of a governmental or collectively 

2 bargained plan to which subparagraph (B) or 

3 (C) of subsection (a)(4) applies, clause (ii) shall 

4 be applied by substituting the date which is 2 

5 years after the date otherwise applied under 

6 such clause. 

7 (B) CONDITIONS.—This subsection shall 

8 not apply to any amendment unless— 

9 (i) during the period— 

10 (I) beginning on the date the leg11 islative or regulatory amendment de12 scribed in paragraph (1)(A) takes ef13 fect (or in the case of a plan amend14 ment not required by such legislative 

15 or regulatory amendment, the effec16 tive date specified by the plan); and 

17 (II) ending on the date described 

18 in subparagraph (A)(ii) (or, if earlier, 

19 the date the plan amendment is 

20 adopted), 

21 the plan is operated as if such plan amend22 ment were in effect; and 

23 (ii) such plan amendment applies 

24 retroactively for such period. 


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1 SEC. 502. INCREASE IN PENALTY FOR FAILURE TO FILE. 

2 (a) IN GENERAL.—The second sentence of subsection 

3 (a) of section 6651 of the Internal Revenue Code of 1986 

4 is amended by striking ‘‘$205’’ and inserting ‘‘$400’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to returns the due date for which 

7 (including extensions) is after December 31, 2018. 

8 SEC. 503. INCREASED PENALTIES FOR FAILURE TO FILE 

9 RETIREMENT PLAN RETURNS. 

10 (a) IN GENERAL.—Subsection (e) of section 6652 of 

11 the Internal Revenue Code of 1986 is amended— 

12 (1) by striking ‘‘$25’’ and inserting ‘‘$100’’; 

13 and 

14 (2) by striking ‘‘$15,000’’ and inserting 

15 ‘‘$50,000’’. 

16 (b) ANNUAL REGISTRATION STATEMENT AND NOTI17 FICATION OF CHANGES.—Subsection (d) of section 6652 

18 of the Internal Revenue Code of 1986 is amended— 

19 (1) by striking ‘‘$1’’ both places it appears in 

20 paragraphs (1) and (2) and inserting ‘‘$2’’; 

21 (2) by striking ‘‘$5,000’’ in paragraph (1) and 

22 inserting ‘‘$10,000’’; and 

23 (3) by striking ‘‘$1,000’’ in paragraph (2) and 

24 inserting ‘‘$5,000’’. 


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1 (c) FAILURE TO PROVIDE NOTICE.—Subsection (h) 

2 of section 6652 of the Internal Revenue Code of 1986 is 

3 amended— 

4 (1) by striking ‘‘$10’’ and inserting ‘‘$100’’; 

5 and 

6 (2) by striking ‘‘$5,000’’ and inserting 

7 ‘‘$50,000’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to returns, statements, and notifi10 cations required to be filed, and notices required to be pro11 vided, after December 31, 2018. 

12 SEC. 504. INCREASE INFORMATION SHARING TO ADMIN13 ISTER EXCISE TAXES. 

14 (a) IN GENERAL.—Section 6103(o) of the Internal 

15 Revenue Code of 1986 is amended by adding at the end 

16 the following new paragraph: 

17 ‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re18 turns and return information with respect to taxes 

19 imposed by section 4481 shall be open to inspection 

20 by or disclosure to officers and employees of United 

21 States Customs and Border Protection of the De22 partment of Homeland Security whose official duties 

23 require such inspection or disclosure for purposes of 

24 administering such section.’’. 


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1 (b) CONFORMING AMENDMENTS.—Paragraph (4) of 

2 section 6103(p) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘or (o)(1)(A)’’ each place it appears 

4 and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 

5 SEC. 505. PENSION VARIABLE RATE PREMIUM PAYMENT 

6 ACCELERATION. 

7 Notwithstanding section 4007(a) of the Employee 

8 Retirement Income Security Act of 1974 (29 U.S.C. 

9 1307(a)) and section 4007.11 of title 29, Code of Federal 

10 Regulations, any additional premium determined under 

11 subparagraph (E) of section 4006(a)(3) of such Act (29 

12 U.S.C. 1306(a)(3)) the due date for which is (but for this 

13 section) after September 30, 2027, and before June 1, 

14 2028, shall be due not later than September 30, 2027. 

Æ 


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