II 

109TH CONGRESS 

2D SESSION S. 3715 

To amend the Internal Revenue Code of 1986 and the Employee Retirement 

Income Security Act of 1974 to provide for the treatment of eligible 

combined defined benefit plans and qualified cash or deferred arrangements. 

IN THE SENATE OF THE UNITED STATES 

JULY 24, 2006 

Ms. SNOWE 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 and the Employee Retirement Income Security Act of 1974 to provide for the treatment of eligible combined defined benefit plans and qualified cash or deferred arrangements. 

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

3 SECTION 1. TREATMENT OF ELIGIBLE COMBINED DEFINED 

4 BENEFIT PLANS AND QUALIFIED CASH OR 

5 DEFERRED ARRANGEMENTS. 

6 (a) AMENDMENTS OF INTERNAL REVENUE CODE.— 

7 Section 414 of the Internal Revenue Code of 1986 is 


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1 amended by adding at the end the following new sub2 section: 

3 ‘‘(w) SPECIAL RULES FOR ELIGIBLE COMBINED DE4 FINED BENEFIT PLANS AND QUALIFIED CASH OR DE5 FERRED ARRANGEMENTS.— 

6 ‘‘(1) GENERAL RULE.—Except as provided in 

7 this subsection, the requirements of this title shall 

8 be applied to any defined benefit plan or applicable 

9 defined contribution plan which are part of an eligi10 ble combined plan in the same manner as if each 

11 such plan were not a part of the eligible combined 

12 plan. 

13 ‘‘(2) ELIGIBLE COMBINED PLAN.—For pur14 poses of this subsection— 

15 ‘‘(A) IN GENERAL.—The term ‘eligible 

16 combined plan’ means a plan— 

17 ‘‘(i) which is maintained by an em18 ployer which, at the time the plan is estab19 lished, is a small employer, 

20 ‘‘(ii) which consists of a defined ben21 efit plan and an applicable defined con22 tribution plan, 

23 ‘‘(iii) the assets of which are held in 

24 a single trust forming part of the plan and 

25 are clearly identified and allocated to the 


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1 defined benefit plan and the applicable de2 fined contribution plan to the extent nec3 essary for the separate application of this 

4 title under paragraph (1), and 

5 ‘‘(iv) with respect to which the ben6 efit, contribution, vesting, and non7 discrimination requirements of subpara8 graphs (B), (C), (D), (E), and (F) are 

9 met. 

10 For purposes of this subparagraph, the term 

11 ‘small employer’ has the meaning given such 

12 term by section 4980D(d)(2), except that such 

13 section shall be applied by substituting ‘500’ for 

14 ‘50’ each place it appears. 

15 ‘‘(B) BENEFIT REQUIREMENTS.— 

16 ‘‘(i) IN GENERAL.—The benefit re17 quirements of this subparagraph are met 

18 with respect to the defined benefit plan 

19 forming part of the eligible combined plan 

20 if the accrued benefit of each participant 

21 derived from employer contributions, when 

22 expressed as an annual retirement benefit, 

23 is not less than the applicable percentage 

24 of the participant’s final average pay. For 

25 purposes of this clause, final average pay 


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1 shall be determined using the period of 

2 consecutive years (not exceeding 5) during 

3 which the participant had the greatest ag4 gregate compensation from the employer. 

5 ‘‘(ii) APPLICABLE PERCENTAGE.—For 

6 purposes of clause (i), the applicable per7 centage is the lesser of— 

8 ‘‘(I) 1 percent multiplied by the 

9 number of years of service with the 

10 employer, or 

11 ‘‘(II) 20 percent. 

12 ‘‘(iii) SPECIAL RULE FOR CASH BAL13 ANCE PLANS.—If the defined benefit plan 

14 under clause (i) is a qualified cash balance 

15 plan (within the meaning of section 

16 411(b)(5)), the plan shall be treated as 

17 meeting the requirements of clause (i) with 

18 respect to any plan year if each participant 

19 receives pay credit for the year which is 

20 not less than the percentage of compensa21 tion determined in accordance with the fol22 lowing table: 

‘‘If the participant’s age as of the 

beginning of the year is— The percentage is— 

30 or less ............................................................................................ 2

Over 30 but less than 40 ................................................................... 4

40 or over but less than 50 ............................................................... 6

50 or over ........................................................................................... 8. 


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1 ‘‘(iv) YEARS OF SERVICE.—For pur2 poses of this subparagraph, years of serv3 ice shall be determined under the rules of 

4 paragraphs (4), (5), and (6) of section 

5 411(a), except that the plan may not dis6 regard any year of service because of a 

7 participant making, or failing to make, any 

8 elective deferral with respect to the quali9 fied cash or deferred arrangement to which 

10 subparagraph (C) applies. 

11 ‘‘(C) CONTRIBUTION REQUIREMENTS.— 

12 ‘‘(i) IN GENERAL.—The contribution 

13 requirements of this subparagraph with re14 spect to any applicable defined contribu15 tion plan forming part of eligible combined 

16 plan are met if— 

17 ‘‘(I) the qualified cash or de18 ferred arrangement included in such 

19 plan constitutes an automatic con20 tribution arrangement, and 

21 ‘‘(II) the employer is required to 

22 make matching contributions on be23 half of each employee eligible to par24 ticipate in the arrangement in an 

25 amount equal to 50 percent of the 


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1 elective contributions of the employee 

2 to the extent such elective contribu3 tions do not exceed 4 percent of com4 pensation. 

5 Rules similar to the rules of clauses (ii) 

6 and (iii) of section 401(k)(12)(B) shall 

7 apply for purposes of this clause. 

8 ‘‘(ii) NONELECTIVE CONTRIBU9 TIONS.—An applicable defined contribution 

10 plan shall not be treated as failing to meet 

11 the requirements of clause (i) because the 

12 employer makes nonelective contributions 

13 under the plan but such contributions shall 

14 not be taken into account in determining 

15 whether the requirements of clause (i)(II) 

16 are met. 

17 ‘‘(D) VESTING REQUIREMENTS.—The vest18 ing requirements of this subparagraph are met 

19 if— 

20 ‘‘(i) in the case of a defined benefit 

21 plan forming part of an eligible combined 

22 plan an employee who has completed at 

23 least 3 years of service has a nonforfeitable 

24 right to 100 percent of the employee’s acVerDate Aug 31 2005 00:53 Jul 26, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3715.IS S3715

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1 crued benefit under the plan derived from 

2 employer contributions, and 

3 ‘‘(ii) in the case of an applicable de4 fined contribution plan forming part of eli5 gible combined plan— 

6 ‘‘(I) an employee has a non7 forfeitable right to any matching con8 tribution made under the qualified 

9 cash or deferred arrangement included 

10 in such plan by an employer with re11 spect to any elective contribution, in12 cluding matching contributions in ex13 cess of the contributions required 

14 under subparagraph (C)(i)(II), and 

15 ‘‘(II) an employee who has com16 pleted at least 3 years of service has 

17 a nonforfeitable right to 100 percent 

18 of the employee’s accrued benefit de19 rived under the arrangement from 

20 nonelective contributions of the em21 ployer. 

22 For purposes of this subparagraph, the 

23 rules of section 411 shall apply to the ex24 tent not inconsistent with this subpara25 graph. 


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1 ‘‘(E) UNIFORM PROVISION OF BENE2 FITS.—In the case of a defined benefit plan or 

3 applicable defined contribution plan forming 

4 part of an eligible combined plan, the require5 ments of this subparagraph are met if all bene6 fits under each such plan, and all rights and 

7 features under each such plan, must be pro8 vided uniformly to all participants. 

9 ‘‘(F) REQUIREMENTS MUST BE MET WITH10 OUT TAKING INTO ACCOUNT SOCIAL SECURITY

11 AND SIMILAR CONTRIBUTIONS AND BENEFITS

12 OR OTHER PLANS.— 

13 ‘‘(i) IN GENERAL.—The requirements 

14 of this subparagraph are met if the re15 quirements of clauses (ii) and (iii) are met. 

16 ‘‘(ii) SOCIAL SECURITY AND SIMILAR

17 CONTRIBUTIONS.—The requirements of 

18 this clause are met if— 

19 ‘‘(I) the requirements of subpara20 graphs (B) and (C) are met without 

21 regard to section 401(l), and 

22 ‘‘(II) the requirements of sections 

23 401(a)(4) and 410(b) are met with re24 spect to both the applicable defined 

25 contribution plan and defined benefit 


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1 plan forming part of an eligible com2 bined plan without regard to section 

3 401(l). 

4 ‘‘(iii) OTHER PLANS AND ARRANGE5 MENTS.—The requirements of this clause 

6 are met if the applicable defined contribu7 tion plan and defined benefit plan forming 

8 part of an eligible combined plan meet the 

9 requirements of sections 401(a)(4) and 

10 410(b) without being combined with any 

11 other plan. 

12 ‘‘(3) NONDISCRIMINATION REQUIREMENTS FOR

13 QUALIFIED CASH OR DEFERRED ARRANGEMENT.— 

14 ‘‘(A) IN GENERAL.—A qualified cash or 

15 deferred arrangement which is included in an 

16 applicable defined contribution plan forming 

17 part of an eligible combined plan shall be treat18 ed as meeting the requirements of section 

19 401(k)(3)(A)(ii) if the requirements of para20 graph (2)(C) are met with respect to such ar21 rangement. 

22 ‘‘(B) MATCHING CONTRIBUTIONS.—In ap23 plying section 401(m)(11) to any matching con24 tribution with respect to a contribution to which 

25 paragraph (2)(C) applies, the contribution reVerDate Aug 31 2005 00:53 Jul 26, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3715.IS S3715

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1 quirement of paragraph (2)(C) and the notice 

2 requirements of paragraph (5)(B) shall be sub3 stituted for the requirements otherwise applica4 ble under clauses (i) and (ii) of section 

5 401(m)(11)(A). 

6 ‘‘(4) SATISFACTION OF TOP-HEAVY RULES.—A 

7 defined benefit plan and applicable defined contribu8 tion plan forming part of an eligible combined plan 

9 for any plan year shall be treated as meeting the re10 quirements of section 416 for the plan year. 

11 ‘‘(5) AUTOMATIC CONTRIBUTION ARRANGE12 MENT.—For purposes of this subsection— 

13 ‘‘(A) IN GENERAL.—A qualified cash or 

14 deferred arrangement shall be treated as an 

15 automatic contribution arrangement if the ar16 rangement— 

17 ‘‘(i) provides that each employee eligi18 ble to participate in the arrangement is 

19 treated as having elected to have the em20 ployer make elective contributions in an 

21 amount equal to 4 percent of the employ22 ee’s compensation unless the employee spe23 cifically elects not to have such contribu24 tions made or to have such contributions 

25 made at a different rate, and 


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1 ‘‘(ii) meets the notice requirements 

2 under subparagraph (B). 

3 ‘‘(B) NOTICE REQUIREMENTS.— 

4 ‘‘(i) IN GENERAL.—The requirements 

5 of this subparagraph are met if the re6 quirements of clauses (ii) and (iii) are met. 

7 ‘‘(ii) REASONABLE PERIOD TO MAKE

8 ELECTION.—The requirements of this 

9 clause are met if each employee to whom 

10 subparagraph (A)(i) applies— 

11 ‘‘(I) receives a notice explaining 

12 the employee’s right under the ar13 rangement to elect not to have elective 

14 contributions made on the employee’s 

15 behalf or to have the contributions 

16 made at a different rate, and 

17 ‘‘(II) has a reasonable period of 

18 time after receipt of such notice and 

19 before the first elective contribution is 

20 made to make such election. 

21 ‘‘(iii) ANNUAL NOTICE OF RIGHTS

22 AND OBLIGATIONS.—The requirements of 

23 this clause are met if each employee eligi24 ble to participate in the arrangement is, 

25 within a reasonable period before any year, 


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1 given notice of the employee’s rights and 

2 obligations under the arrangement. 

3 The requirements of clauses (i) and (ii) of sec4 tion 401(k)(12)(D) shall be met with respect to 

5 the notices described in clauses (ii) and (iii) of 

6 this subparagraph. 

7 ‘‘(6) COORDINATION WITH OTHER REQUIRE8 MENTS.— 

9 ‘‘(A) TREATMENT OF SEPARATE PLANS.— 

10 Section 414(k) shall not apply to an eligible 

11 combined plan. 

12 ‘‘(B) REPORTING.—An eligible combined 

13 plan shall be treated as a single plan for pur14 poses of sections 6058 and 6059. 

15 ‘‘(7) APPLICABLE DEFINED CONTRIBUTION

16 PLAN.—For purposes of this subsection— 

17 ‘‘(A) IN GENERAL.—The term ‘applicable 

18 defined contribution plan’ means a defined con19 tribution plan which includes a qualified cash or 

20 deferred arrangement. 

21 ‘‘(B) QUALIFIED CASH OR DEFERRED AR22 RANGEMENT.—The term ‘qualified cash or de23 ferred arrangement’ has the meaning given 

24 such term by section 401(k)(2).’’. 

25 (b) AMENDMENTS OF ERISA.— 


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1 (1) IN GENERAL.—Section 210 of the Employee 

2 Retirement Income Security Act of 1974 is amended 

3 by adding at the end the following new subsection: 

4 ‘‘(e) SPECIAL RULES FOR ELIGIBLE COMBINED DE5 FINED BENEFIT PLANS AND QUALIFIED CASH OR DE6 FERRED ARRANGEMENTS.— 

7 ‘‘(1) GENERAL RULE.—Except as provided in 

8 this subsection, this Act shall be applied to any de9 fined benefit plan or applicable individual account 

10 plan which are part of an eligible combined plan in 

11 the same manner as if each such plan were not a 

12 part of the eligible combined plan. 

13 ‘‘(2) ELIGIBLE COMBINED PLAN.—For pur14 poses of this subsection— 

15 ‘‘(A) IN GENERAL.—The term ‘eligible 

16 combined plan’ means a plan— 

17 ‘‘(i) which, at the time the plan is es18 tablished, is maintained by a small em19 ployer, 

20 ‘‘(ii) which consists of a defined ben21 efit plan and an applicable individual ac22 count plan each of which qualifies under 

23 section 401(a) of the Internal Revenue 

24 Code of 1986, 


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1 ‘‘(iii) the assets of which are held in 

2 a single trust forming part of the plan and 

3 are clearly identified and allocated to the 

4 defined benefit plan and the applicable in5 dividual account plan to the extent nec6 essary for the separate application of this 

7 Act under paragraph (1), and 

8 ‘‘(iv) with respect to which the ben9 efit, contribution, vesting, and non10 discrimination requirements of subpara11 graphs (B), (C), (D), (E), and (F) are 

12 met. 

13 For purposes of this subparagraph, the term 

14 ‘small employer’ has the meaning given such 

15 term by section 4980D(d)(2), except that such 

16 section shall be applied by substituting ‘500’ for 

17 ‘50’ each place it appears. 

18 ‘‘(B) BENEFIT REQUIREMENTS.— 

19 ‘‘(i) IN GENERAL.—The benefit re20 quirements of this subparagraph are met 

21 with respect to the defined benefit plan 

22 forming part of the eligible combined plan 

23 if the accrued benefit of each participant 

24 derived from employer contributions, when 

25 expressed as an annual retirement benefit, 


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1 is not less than the applicable percentage 

2 of the participant’s final average pay. For 

3 purposes of this clause, final average pay 

4 shall be determined using the period of 

5 consecutive years (not exceeding 5) during 

6 which the participant had the greatest ag7 gregate compensation from the employer. 

8 ‘‘(ii) APPLICABLE PERCENTAGE.—For 

9 purposes of clause (i), the applicable per10 centage is the lesser of— 

11 ‘‘(I) 1 percent multiplied by the 

12 number of years of service with the 

13 employer, or 

14 ‘‘(II) 20 percent. 

15 ‘‘(iii) SPECIAL RULE FOR CASH BAL16 ANCE PLANS.—If the defined benefit plan 

17 under clause (i) is a qualified cash balance 

18 plan (within the meaning of section 

19 204(b)(5)), the plan shall be treated as 

20 meeting the requirements of clause (i) with 

21 respect to any plan year if each participant 

22 receives pay credit for the year which is 

23 not less than the percentage of compensa24 tion determined in accordance with the fol25 lowing table: 


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‘‘If the participant’s age as of the 

beginning of the year is— The percentage is—

30 or less ............................................................................................ 2

Over 30 but less than 40 ................................................................... 4

40 or over but less than 50 ............................................................... 6

50 or over ........................................................................................... 8. 

1 ‘‘(iv) YEARS OF SERVICE.—For pur2 poses of this subparagraph, years of serv3 ice shall be determined under the rules of 

4 paragraphs (1), (2), and (3) of section 

5 203(b), except that the plan may not dis6 regard any year of service because of a 

7 participant making, or failing to make, any 

8 elective deferral with respect to the quali9 fied cash or deferred arrangement to which 

10 subparagraph (C) applies. 

11 ‘‘(C) CONTRIBUTION REQUIREMENTS.— 

12 ‘‘(i) IN GENERAL.—The contribution 

13 requirements of this subparagraph with re14 spect to any applicable individual account 

15 plan forming part of eligible combined plan 

16 are met if— 

17 ‘‘(I) the qualified cash or de18 ferred arrangement included in such 

19 plan constitutes an automatic con20 tribution arrangement, and 

21 ‘‘(II) the employer is required to 

22 make matching contributions on beVerDate Aug 31 2005 00:53 Jul 26, 2006 Jkt 049200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S3715.IS S3715

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1 half of each employee eligible to par2 ticipate in the arrangement in an 

3 amount equal to 50 percent of the 

4 elective contributions of the employee 

5 to the extent such elective contribu6 tions do not exceed 4 percent of com7 pensation. 

8 Rules similar to the rules of clauses (ii) 

9 and (iii) of section 401(k)(12)(B) of the 

10 Internal Revenue Code of 1986 shall apply 

11 for purposes of this clause. 

12 ‘‘(ii) NONELECTIVE CONTRIBU13 TIONS.—An applicable individual account 

14 plan shall not be treated as failing to meet 

15 the requirements of clause (i) because the 

16 employer makes nonelective contributions 

17 under the plan but such contributions shall 

18 not be taken into account in determining 

19 whether the requirements of clause (i)(II) 

20 are met. 

21 ‘‘(D) VESTING REQUIREMENTS.—The vest22 ing requirements of this subparagraph are met 

23 if— 

24 ‘‘(i) in the case of a defined benefit 

25 plan forming part of an eligible combined 


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1 plan an employee who has completed at 

2 least 3 years of service has a nonforfeitable 

3 right to 100 percent of the employee’s ac4 crued benefit under the plan derived from 

5 employer contributions, and 

6 ‘‘(ii) in the case of an applicable indi7 vidual account plan forming part of eligible 

8 combined plan— 

9 ‘‘(I) an employee has a non10 forfeitable right to any matching con11 tribution made under the qualified 

12 cash or deferred arrangement included 

13 in such plan by an employer with re14 spect to any elective contribution, in15 cluding matching contributions in ex16 cess of the contributions required 

17 under subparagraph (C)(i)(II), and 

18 ‘‘(II) an employee who has com19 pleted at least 3 years of service has 

20 a nonforfeitable right to 100 percent 

21 of the employee’s accrued benefit de22 rived under the arrangement from 

23 nonelective contributions of the em24 ployer. 


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1 For purposes of this subparagraph, the 

2 rules of section 203 shall apply to the ex3 tent not inconsistent with this subpara4 graph. 

5 ‘‘(E) UNIFORM PROVISION OF BENE6 FITS.—In the case of a defined benefit plan or 

7 applicable individual account plan forming part 

8 of an eligible combined plan, the requirements 

9 of this subparagraph are met if all benefits 

10 under each such plan, and all rights and fea11 tures under each such plan, must be provided 

12 uniformly to all participants. 

13 ‘‘(F) REQUIREMENTS MUST BE MET WITH14 OUT TAKING INTO ACCOUNT SOCIAL SECURITY

15 AND SIMILAR CONTRIBUTIONS AND BENEFITS

16 OR OTHER PLANS.— 

17 ‘‘(i) IN GENERAL.—The requirements 

18 of this subparagraph are met if the re19 quirements of clauses (ii) and (iii) are met. 

20 ‘‘(ii) SOCIAL SECURITY AND SIMILAR

21 CONTRIBUTIONS.—The requirements of 

22 this clause are met if— 

23 ‘‘(I) the requirements of subpara24 graphs (B) and (C) are met without 


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1 regard to section 401(l) of the Inter2 nal Revenue Code of 1986, and 

3 ‘‘(II) the requirements of sections 

4 401(a)(4) and 410(b) of the Internal 

5 Revenue Code of 1986 are met with 

6 respect to both the applicable defined 

7 contribution plan and defined benefit 

8 plan forming part of an eligible com9 bined plan without regard to section 

10 401(l) of the Internal Revenue Code 

11 of 1986. 

12 ‘‘(iii) OTHER PLANS AND ARRANGE13 MENTS.—The requirements of this clause 

14 are met if the applicable defined contribu15 tion plan and defined benefit plan forming 

16 part of an eligible combined plan meet the 

17 requirements of sections 401(a)(4) and 

18 410(b) of the Internal Revenue Code of 

19 1986 without being combined with any 

20 other plan. 

21 ‘‘(3) NONDISCRIMINATION REQUIREMENTS FOR

22 QUALIFIED CASH OR DEFERRED ARRANGEMENT.— 

23 ‘‘(A) IN GENERAL.—A qualified cash or 

24 deferred arrangement which is included in an 

25 applicable individual account plan forming part 


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1 of an eligible combined plan shall be treated as 

2 meeting the requirements of section 

3 401(k)(3)(A)(ii) of the Internal Revenue Code 

4 of 1986 if the requirements of subparagraph 

5 (C) are met with respect to such arrangement. 

6 ‘‘(B) MATCHING CONTRIBUTIONS.—In ap7 plying section 401(m)(11) of such Code to any 

8 matching contribution with respect to a con9 tribution to which paragraph (2)(C) applies, the 

10 contribution requirement of paragraph (2)(C) 

11 and the notice requirements of paragraph 

12 (5)(B) shall be substituted for the requirements 

13 otherwise applicable under clauses (i) and (ii) of 

14 section 401(m)(11)(A) of such Code. 

15 ‘‘(4) AUTOMATIC CONTRIBUTION ARRANGE16 MENT.—For purposes of this subsection— 

17 ‘‘(A) IN GENERAL.—A qualified cash or 

18 deferred arrangement shall be treated as an 

19 automatic contribution arrangement if the ar20 rangement— 

21 ‘‘(i) provides that each employee eligi22 ble to participate in the arrangement is 

23 treated as having elected to have the em24 ployer make elective contributions in an 

25 amount equal to 4 percent of the employVerDate Aug 31 2005 00:53 Jul 26, 2006 Jkt 049200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S3715.IS S3715

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1 ee’s compensation unless the employee spe2 cifically elects not to have such contribu3 tions made or to have such contributions 

4 made at a different rate, and 

5 ‘‘(ii) meets the notice requirements 

6 under subparagraph (B). 

7 ‘‘(B) NOTICE REQUIREMENTS.— 

8 ‘‘(i) IN GENERAL.—The requirements 

9 of this subparagraph are met if the re10 quirements of clauses (ii) and (iii) are met. 

11 ‘‘(ii) REASONABLE PERIOD TO MAKE

12 ELECTION.—The requirements of this 

13 clause are met if each employee to whom 

14 subparagraph (A)(i) applies— 

15 ‘‘(I) receives a notice explaining 

16 the employee’s right under the ar17 rangement to elect not to have elective 

18 contributions made on the employee’s 

19 behalf or to have the contributions 

20 made at a different rate, and 

21 ‘‘(II) has a reasonable period of 

22 time after receipt of such notice and 

23 before the first elective contribution is 

24 made to make such election. 


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1 ‘‘(iii) ANNUAL NOTICE OF RIGHTS

2 AND OBLIGATIONS.—The requirements of 

3 this clause are met if each employee eligi4 ble to participate in the arrangement is, 

5 within a reasonable period before any year, 

6 given notice of the employee’s rights and 

7 obligations under the arrangement. 

8 The requirements of clauses (i) and (ii) of sec9 tion 401(k)(12)(D) of the Internal Revenue 

10 Code of 1986 shall be met with respect to the 

11 notices described in clauses (ii) and (iii) of this 

12 subparagraph. 

13 ‘‘(5) COORDINATION WITH OTHER REQUIRE14 MENTS.— 

15 ‘‘(A) TREATMENT OF SEPARATE PLANS.— 

16 Section 414(k) of the Internal Revenue Code of 

17 1986 shall not apply to an eligible combined 

18 plan. 

19 ‘‘(B) REPORTING.—An eligible combined 

20 plan shall be treated as a single plan for pur21 poses of section 103. 

22 ‘‘(6) APPLICABLE INDIVIDUAL ACCOUNT

23 PLAN.—For purposes of this subsection— 

24 ‘‘(A) IN GENERAL.—The term ‘applicable 

25 individual account plan’ means an individual acVerDate Aug 31 2005 00:53 Jul 26, 2006 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S3715.IS S3715

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1 count plan which includes a qualified cash or 

2 deferred arrangement. 

3 ‘‘(B) QUALIFIED CASH OR DEFERRED AR4 RANGEMENT.—The term ‘qualified cash or de5 ferred arrangement’ has the meaning given 

6 such term by section 401(k)(2) of the Internal 

7 Revenue Code of 1986.’’. 

8 (2) CONFORMING CHANGES.— 

9 (A) The heading for section 210 of such 

10 Act is amended to read as follows: 

11 ‘‘SEC. 210. MULTIPLE EMPLOYER PLANS AND OTHER SPE12 CIAL RULES.’’. 

13 (B) The table of contents in section 1 of 

14 such Act is amended by striking the item relat15 ing to section 210 and inserting the following 

16 new item: 

‘‘Sec. 210. Multiple employer plans and other special rules.’’. 

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

18 this section shall apply to plan years beginning after De19 cember 31, 2008. 

Æ 


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