percent of the employee’s compensa-
tion,
‘‘(iv) the employer is required to make
nonelective contributions of 1 percent of
compensation for each employee eligible to
participate in the arrangement who has at
least $5,000 of compensation from the em-
ployer for the year, and
‘‘(v) no contributions may be made
other than contributions described in
clause (i), (iii), or (iv).’’, and
(B) by striking subparagraph (B) and in-
serting the following new subparagraph:
‘‘(B) CONTRIBUTION RULES.—
‘‘(i) EMPLOYER
MAY
ELECT
3-PER-
CENT
NONELECTIVE
CONTRIBUTION.—An
employer shall be treated as meeting the
requirements of clauses (iii) and (iv) of
subparagraph (A) for any year if, in lieu of
the contributions described in such clauses,
the employer elects to make nonelective
contributions of 3 percent of compensation
for each employee who is eligible to partici-
pate in the arrangement and who has at
least $5,000 of compensation from the em-
ployer for the year. If an employer makes
an election under this clause for any year,
the employer shall notify employees of such
election within a reasonable period of time
before the 60-day period for such year
under paragraph (5)(C).
‘‘(ii) 
DISCRETIONARY
CONTRIBU-
TIONS.—A plan shall not be treated as fail-
ing to meet the requirements of subpara-
graph (A)(v) merely because, pursuant to
the terms of the plan, an employer makes
nonelective contributions under subpara-
graph (A)(iv) or clause (i) of this subpara-
graph in excess of 1 percent or 3 percent
of compensation, respectively, but only if
all such contributions bear a uniform rela-
tionship to the compensation of each eligi-
ble employee and do not exceed 5 percent
of compensation for any eligible employee.
‘‘(iii) COMPENSATION
LIMITATION.—
The compensation taken into account
under this paragraph for any year shall
not exceed the limitation in effect for such
year under section 401(a)(17).’’
(2) 
MATCHING
CONTRIBUTIONS.—Subpara-
graph (B) of section 401(k)(11) (relating to adop-
tion of simple plan to meet nondiscrimination tests)
is amended—
(A) by striking subclauses (II) and (III) of
clause (i) and inserting the following new sub-
clauses:
‘‘(II) the employer is required to
make a matching contribution to the
trust for any year in an amount equal
to—
‘‘(aa) 
so 
much 
of 
the
amount 
the 
employee 
elects
under subclause (I) as does not
exceed 3 percent of compensation
for the year, and
‘‘(bb) a uniform percentage
(which is at least 50 percent but
not more than 100 percent) of
the amount the employee elects
under subclause (I) to the extent
that such amount exceeds 3 per-
cent but does not exceed 5 per-
cent of the employee’s compensa-
tion,
‘‘(III) the employer is required to
make nonelective contributions of 1
percent of compensation for each em-
ployee eligible to participate in the ar-
rangement who has at least $5,000 of
compensation from the employer for
the year, and
‘‘(IV) no other contributions may
be made other than contributions de-
scribed in subclause (I), (II), or
(III).’’, and
(B) by striking clause (ii) and inserting the
following new clause:
‘‘(ii) CONTRIBUTION RULES.—
‘‘(I) EMPLOYER
MAY
ELECT
3-
PERCENT
NONELECTIVE
CONTRIBU-
TION.—An employer shall be treated
as meeting the requirements of sub-
clauses (II) and (III) of clause (i) for
any year if, in lieu of the contribu-
tions described in such subclauses, the
employer elects to make nonelective
contributions of 3 percent of com-
pensation for each employee who is el-
igible to participate in the arrange-
ment and who has at least $5,000 of
compensation from the employer for
the year. If an employer makes an
election under this subclause for any
year, the employer shall notify em-
ployees of such election within a rea-
sonable period of time before the 60th
day before the beginning of such year.
‘‘(II) DISCRETIONARY CONTRIBU-
TIONS.—A plan shall not be treated
as failing to meet the requirements of
clause (i)(IV) merely because, pursu-
ant to the terms of the plan, an em-
ployer makes nonelective contributions
under clause (i)(III) or subclause (I)
of this clause in excess of 1 percent or
3 percent of compensation, respec-
tively, but only if all such contribu-
tions bear a uniform relationship to
the compensation of each eligible em-
ployee and do not exceed 5 percent of
compensation for any eligible em-
ployee.’’
(b) OPTION TO SUSPEND CONTRIBUTIONS.—Section
408(p) (relating to simple retirement accounts) is amend-
ed by adding at the end the following new paragraph:
‘‘(10) SUSPENSION OF PLAN.—Except as pro-
vided by the Secretary, a plan shall not be treated
as failing to meet the requirements of this sub-
section if, under the plan, the employer may suspend
all elective, matching, and nonelective contributions
under the plan after notifying employees eligible to
participate in the arrangement of such suspension in
writing at least 30 days in advance. Such suspension
shall apply to contributions with respect to com-
pensation earned after the effective date of the sus-
pension. Only 1 suspension under this paragraph
may take effect during any year.’’
(c) 
CONFORMING
AMENDMENTS.—Section
408(p)(2)(C) is amended—
(1) by striking clause (ii),
(2) by striking ‘‘DEFINITIONS’’ in the heading
and inserting ‘‘ELIGIBLE EMPLOYER’’,
(3) by striking ‘‘(i) ELIGIBLE EMPLOYER.—’’,
and
(4) by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 1999.
(2) DELAYED EFFECTIVE DATE FOR PLANS ES-
TABLISHED IN 1998 OR 1999.—In the case of plans
established in 1998 or 1999 under section 408(p)
of the Internal Revenue Code of 1986, the amend-
ments made by this section shall apply to taxable
years beginning after December 31, 2003.
SEC. 122. NONDISCRIMINATION RULES FOR QUALIFIED
CASH OR DEFERRED ARRANGEMENTS AND
MATCHING CONTRIBUTIONS.
(a) ALTERNATIVE METHODS OF SATISFYING SEC-
TION
401(k) NONDISCRIMINATION
TESTS.—Subpara-
graph (B) of section 401(k)(12) (relating to alternative
methods of meeting nondiscrimination requirements) is
amended to read as follows:
‘‘(B) NONELECTIVE AND MATCHING CON-
TRIBUTIONS.—
‘‘(i) IN GENERAL.—The requirements
of this subparagraph are met if the re-
quirements of clauses (ii) and (iii) are met.
‘‘(ii) 
NONELECTIVE
CONTRIBU-
TIONS.—The requirements of this clause
are met if, under the arrangement, the em-
ployer is required, without regard to
whether the employee makes an elective
contribution or employee contribution, to
make a contribution to a defined contribu-
tion plan on behalf of each employee who
is not a highly compensated employee and
who is eligible to participate in the ar-
rangement in an amount equal to at least
1 percent of the employee’s compensation.
‘‘(iii) MATCHING
CONTRIBUTIONS.—
The requirements of this clause are met if,
under the arrangement, the employer
makes matching contributions on behalf of
each employee who is not a highly com-
pensated employee in an amount equal
to—
‘‘(I) 100 percent of the elective
contributions of the employee to the
extent such elective contributions do
not exceed 3 percent of the employee’s
compensation, and
‘‘(II) 50 percent of the elective
contributions of the employee to the
extent that such elective contributions
exceed 3 percent but do not exceed 5
percent of the employee’s compensa-
tion.
‘‘(iv) 
RATE
FOR
HIGHLY
COM-
PENSATED
EMPLOYEES.—The 
require-
ments of clause (iii) are not met if, under
the arrangement, the rate of matching con-
tribution with respect to any rate of elec-
tive contribution of a highly compensated
employee is greater than that with respect
to an employee who is not a highly com-
pensated employee. For purposes of this
clause, to the extent provided in regula-
tions, the last sentences of paragraph
(3)(A) and subsection (m)(2)(B) shall not
apply.
‘‘(v) ALTERNATIVE PLAN DESIGNS.—
If the rate of matching contribution with
respect to any rate of elective contribution
is not equal to the percentage required
under clause (iii), an arrangement shall
not be treated as failing to meet the re-
quirements of clause (iii) if—
‘‘(I) the rate of an employer’s
matching contribution does not in-
crease as an employee’s rate of elec-
tive contribution increase, and
‘‘(II) the aggregate amount of
matching contributions at such rate of
elective contribution is at least equal
to the aggregate amount of matching
contributions which would be made if
matching contributions were made on
the basis of the percentages described
in clause (iii).’’
(b) CONTRIBUTIONS PART OF QUALIFIED CASH OR
DEFERRED
ARRANGEMENT.—Subparagraph (E)(ii) of
section 401(k)(12) is amended to read as follows:
‘‘(ii) SOCIAL SECURITY AND SIMILAR
CONTRIBUTIONS
NOT
TAKEN
INTO
AC-
COUNT.—Except as provided in regula-
tions, an arrangement shall not be treated
as meeting the requirements of subpara-
graph (B) or (C) unless such requirements
are met without regard to subsection (l),
and, for purposes of subsection (l), and de-
termining whether contributions provided
under a plan satisfy subsection (a)(4) on
the basis of equivalent benefits, employer
contributions under subparagraph (B) or
(C) shall not be taken into account.’’
(c) ALTERNATIVE METHODS OF SATISFYING SEC-
TION
401(m) 
NONDISCRIMINATION
TESTS.—Section
401(m)(11) (relating to alternative method of satisfying
tests) is amended—
(1) by striking ‘‘subparagraph (B)’’ in subpara-
graph (A)(iii) and inserting ‘‘subparagraphs (B) and
(C)’’,
(2) by adding at the end of subparagraph (B)
the following new flush sentence:
‘‘To the extent provided in regulations, the last
sentences of paragraph (2)(B) and subsection
(k)(3)(A) shall not apply for purposes of clause
(iii).’’, and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) TEST MUST BE MET SEPARATELY.—
If this paragraph applies to any matching con-
tributions, such contributions shall not be taken
into account in determining whether employee
contributions satisfy the requirements of this
subsection.’’
(d) SPECIAL RULE FOR DETERMINING AVERAGE DE-
FERRAL PERCENTAGE FOR FIRST PLAN YEAR, ETC.—
Subparagraph (E) of section 401(k)(3) is amended to read
as follows:
‘‘(E) For purposes of this paragraph, in
the case of the first plan year of any plan, the
amount taken into account as the actual defer-
ral percentage of nonhighly compensated em-
ployees for the preceding plan year shall be—
‘‘(i) 3 percent, or
‘‘(ii) the actual deferral percentage of
nonhighly compensated employees deter-
mined for such first plan year in the case
of—
‘‘(I) an employer who elects to
have this clause apply, or
‘‘(II) except to the extent pro-
vided by the Secretary, a successor
plan.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1999.
SEC. 123. DEFINITION OF HIGHLY COMPENSATED EMPLOY-
EES.
(a) IN GENERAL.—Subparagraph (B) of section
414(q)(1) (defining highly compensated employee) is
amended to read as follows:
‘‘(B) for the preceding year had compensa-
tion from the employer in excess of $80,000.’’
(b) CONFORMING AMENDMENTS.—
(1)(A) Subsection (q) of section 414 is amended
by striking paragraphs (3), (5), and (7) and by re-
designating paragraphs (4), (6), (8), and (9) as
paragraphs (3) through (6), respectively.
(B) Sections 129(d)(8)(B), 401(a)(5)(D)(ii),
408(k)(2)(C), and 416(i)(1)(D) are each amended
by striking ‘‘section 414(q)(4)’’ and inserting ‘‘sec-
tion 414(q)(3)’’.
(C) Section 416(i)(1)(A) is amended by striking
‘‘section 
414(q)(5)’’ 
and 
inserting 
‘‘section
414(r)(9)’’.
(2)(A) Section 414(r) is amended by adding at
the end the following new paragraph:
‘‘(9) EXCLUDED EMPLOYEES.—For purposes of
paragraph (2)(A), the following employees shall be
excluded:
‘‘(A) Employees who have not completed 6
months of service.
‘‘(B) Employees who normally work less
than 171⁄2 hours per week.
‘‘(C) Employees who normally work during
not more than 6 months during any year.
‘‘(D) Employees who have not attained the
age of 21.
‘‘(E) Except to the extent provided in reg-
ulations, employees who are included in a unit
of employees covered by an agreement which
the Secretary of Labor finds to be a collective
bargaining agreement between employee rep-
resentatives and the employer.’’
(B) Subparagraph (A) of section 414(r)(2) is
amended by striking ‘‘subsection (q)(5)’’ and insert-
ing ‘‘paragraph (9)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1999.
SEC. 124. TREATMENT OF MULTIEMPLOYER PLANS UNDER
SECTION 415.
(a) COMPENSATION LIMIT.—Paragraph (11) of sec-
tion 415(b) (relating to limitation for defined benefit
plans) is amended to read as follows:
‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN-
MENTAL AND MULTIEMPLOYER PLANS.—In the case
of a governmental plan (as defined in section
414(d)) or a multiemployer plan (as defined in sec-
tion 414(f)), subparagraph (B) of paragraph (1)
shall not apply.’’
(b) EXEMPTION
FOR SURVIVOR
AND DISABILITY
BENEFITS.—Subparagraph (I) of section 415(b)(2) (relat-
ing to limitation for defined benefit plans) is amended—
(1) by inserting ‘‘or a multiemployer plan (as
defined in section 414(f))’’ after ‘‘section 414(d))’’
in clause (i),
(2) by inserting ‘‘or multiemployer plan’’ after
‘‘governmental plan’’ in clause (ii), and
(3) by inserting ‘‘AND MULTIEMPLOYER’’ after
‘‘GOVERNMENTAL’’ in the heading.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1999.
SEC. 125. EXEMPTION OF MIRROR PLANS FROM SECTION
457 LIMITS.
(a) IN GENERAL.—Subsection (e) of section 457 (re-
lating to deferred compensation plans of State and local
governments and tax-exempt organizations) is amended by
adding at the end the following new paragraph:
‘‘(16) EXEMPTION FOR MIRROR PLANS.—
‘‘(A) IN
GENERAL.—Amounts of com-
pensation deferred under a mirror plan shall
not be taken into account in applying this sec-
tion to amounts of compensation deferred under
any other deferred compensation plan.
‘‘(B) MIRROR
PLAN.—The term ‘mirror
plan’ means a plan, program, or arrangement
maintained solely for the purpose of providing
retirement benefits for employees in excess of
the limitations imposed by section 401(a)(17)
or section 415, or both.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 126. IMMEDIATE PARTICIPATION IN THE THRIFT SAV-
INGS PLAN FOR FEDERAL EMPLOYEES.
(a) ELIMINATION OF CERTAIN WAITING PERIODS
FOR PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Para-
graph (4) of section 8432(b) of title 5, United States
Code, is amended to read as follows:
‘‘(4) The Executive Director shall prescribe such reg-
ulations as may be necessary to carry out the following:
‘‘(A) Notwithstanding subparagraph (A) of
paragraph (2), an employee or Member described in
such subparagraph shall be afforded a reasonable
opportunity to first make an election under this sub-
section beginning on the date of commencing service
or, if that is not administratively feasible, beginning
on the earliest date thereafter that such an election
becomes administratively feasible, as determined by
the Executive Director.
‘‘(B) An employee or Member described in sub-
paragraph (B) of paragraph (2) shall be afforded a
reasonable opportunity to first make an election
under this subsection (based on the appointment or
election described in such subparagraph) beginning
on the date of commencing service pursuant to such
appointment or election or, if that is not administra-
tively feasible, beginning on the earliest date there-
after that such an election becomes administratively
feasible, as determined by the Executive Director.
‘‘(C) Notwithstanding the preceding provisions
of this paragraph, contributions under paragraphs
(1) and (2) of subsection (c) shall not be payable
with respect to any pay period before the earliest
pay period for which such contributions would other-
wise be allowable under this subsection if this para-
graph had not been enacted.
‘‘(D) 
Sections 
8351(a)(2), 
8440a(a)(2),
8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be
applied in a manner consistent with the purposes of
subparagraphs (A) and (B), to the extent those sub-
paragraphs can be applied with respect thereto.
‘‘(E) Nothing in this paragraph shall affect
paragraph (3).’’
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 8432(a) of title 5, United States
Code, is amended—
(A) in the first sentence by striking
‘‘(b)(1)’’ and inserting ‘‘(b)’’; and
(B) by amending the second sentence to
read as follows: ‘‘Contributions under this sub-
section pursuant to such an election shall, with
respect to each pay period for which such elec-
tion remains in effect, be made in accordance
with a program of regular contributions pro-
vided in regulations prescribed by the Executive
Director.’’
(2) Section 8432(b)(1)(B) of such title is
amended by inserting ‘‘(or any election allowable by
virtue of paragraph (4))’’ after ‘‘subparagraph (A)’’.
(3) Section 8432(b)(3) of such title is amended
by striking ‘‘Notwithstanding paragraph (2)(A), an’’
and inserting ‘‘An’’.
(4) Section 8432(i)(1)(B)(ii) of such title is
amended by striking ‘‘either elected to terminate in-
dividual contributions to the Thrift Savings Fund
within 2 months before commencing military service
or’’.
(5) Section 8439(a)(1) of such title is amended
by inserting ‘‘who makes contributions or’’ after ‘‘for
each 
individual’’ 
and 
by 
striking 
‘‘section
8432(c)(1)’’ and inserting ‘‘section 8432’’.
(6) Section 8439(c)(2) of such title is amended
by adding at the end the following: ‘‘Nothing in this
paragraph shall be considered to limit the dissemina-
tion of information only to the times required under
the preceding sentence.’’
(7) Sections 8440a(a)(2) and 8440d(a)(2) of
such title are amended by striking all after ‘‘subject
to’’ and inserting ‘‘subject to this chapter.’’
(c) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act or
such earlier date as the Executive Director may by regula-
tion prescribe.
SEC. 127. FULL FUNDING LIMITATION FOR MULTIEM-
PLOYER PLANS.
(a) AMENDMENTS TO CODE.—
(1) 
FULL
FUNDING
LIMITATION.—Section
412(c)(7)(C) (relating to full funding limitation) is
amended—
(A) by inserting ‘‘or in the case of a multi-
employer plan,’’ after ‘‘paragraph (6)(B),’’, and
(B) by inserting ‘‘AND
MULTIEMPLOYER
PLANS’’ after ‘‘PARAGRAPH (6)(B)’’ in the head-
ing thereof.
(2) VALUATION.—Section 412(c)(9) (relating to
annual valuation) is amended—
(A) by inserting ‘‘(3 years in the case of a
multiemployer plan)’’ after ‘‘year’’, and
(B) by striking ‘‘ANNUAL VALUATION’’ in
the heading and inserting ‘‘VALUATION’’.
(b) AMENDMENTS TO ERISA.—
(1) 
FULL
FUNDING
LIMITATION.—Section
302(c)(7)(C) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1082(c)(7)(C)) is
amended—
(A) by inserting ‘‘or in the case of a multi-
employer plan,’’ after ‘‘paragraph (6)(B),’’, and
(B) by inserting ‘‘AND
MULTIEMPLOYER
PLANS’’ after ‘‘PARAGRAPH (6)(B)’’ in the head-
ing thereof.
(2) VALUATION.—Section 302(c)(9) of such Act
(29 U.S.C. 1082(c)(9)) is amended—
(A) by inserting ‘‘(3 years in the case of a
multiemployer plan)’’ after ‘‘year’’, and
(B) by striking ‘‘ANNUAL VALUATION’’ in
the heading and inserting ‘‘VALUATION’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after De-
cember 31, 1999.
SEC. 128. ELIMINATION OF PARTIAL TERMINATION RULES
FOR MULTIEMPLOYER PLANS.
(a) PARTIAL TERMINATION RULES FOR MULTIEM-
PLOYER PLANS.—Section 411(d)(3) (relating to termi-
nation or partial termination; discontinuance of contribu-
tions) is amended by adding at the end the following new
sentence: ‘‘This paragraph shall not apply in the case of
a partial termination of a multiemployer plan.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to partial terminations beginning
after December 31, 1999.
SEC. 129. REPEAL OF 150 PERCENT OF CURRENT LIABILITY
FUNDING LIMIT.
(a) IN GENERAL.—Section 412(c)(7) (relating to
full-funding limitation) is amended—
(1) by striking ‘‘150 percent’’ in subparagraph
(A)(i)(I) and inserting ‘‘the applicable percentage’’,
and
(2) by adding at the end the following new sub-
paragraph:
‘‘(F) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A)(i)(I), the applica-
ble percentage is determined according to the
following table:
‘‘In the case of any plan year
beginning in—
The applicable percentage is—
1998 .........................................................................................
155
1999 .........................................................................................
160
2000 .........................................................................................
165
2001 .........................................................................................
170
2002 and succeeding years ......................................................
0.’’
(b) SPECIAL AMORTIZATION RULE.—
(1) 
IN
GENERAL.—Section 
412(c)(7), 
as
amended by subsection (a), is amended by adding at
the end the following new subparagraph:
‘‘(G) SPECIAL AMORTIZATION RULE.—Con-
tributions that would be required to be made
under the plan but for the provisions of sub-
paragraph (A)(i)(I) shall be amortized over a
20-year period.’’
(2) 
CONFORMING
AMENDMENT.—Section
412(c)(7)(D) is amended by adding ‘‘and’’ at the
end of clause (i), by striking ‘‘, and’’ at the end of
clause (ii) and inserting a period, and by striking
clause (iii).
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to any unamortized
bases with respect to plan years beginning before,
on, or after December 31, 1999.
TITLE II—SECURITY
SEC. 200. AMENDMENT OF ERISA.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Employee Retirement In-
come Security Act of 1974.
Subtitle A—General Provisions
SEC. 201. PERIODIC PENSION BENEFITS STATEMENTS.
(a) IN GENERAL.—Subsection (a) of section 105 (29
U.S.C. 1025) is amended—
(1) by striking ‘‘shall furnish to any plan par-
ticipant or beneficiary who so requests in writing,’’
and inserting ‘‘shall furnish at least once every 3
years, in the case of a participant in a defined ben-
efit plan who has attained age 35, and annually, in
the case of a defined contribution plan, to each plan
participant, and shall furnish to any plan participant
or beneficiary who so requests,’’, and
(2) by adding at the end the following flush
sentence:
‘‘Information furnished under the preceding sentence to
a participant in a defined benefit plan (other than at the
request of the participant) may be based on reasonable
estimates determined under regulations prescribed by the
Secretary.’’
(b) RULE FOR MULTIEMPLOYER PLANS.—Subsection
(d) of section 105 (29 U.S.C. 1025) is amended to read
as follows:
‘‘(d) Each administrator of a plan to which more than
1 unaffiliated employer is required to contribute shall fur-
nish to any plan participant or beneficiary who so requests
in writing, a statement described in subsection (a).’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after the
later of—
(1) the date of issuance by the Secretary of
Labor of regulations providing guidance for simpli-
fying defined benefit plan calculations with respect
to the information required under section 105 of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1025), or
(2) December 31, 1999.
SEC. 202. REQUIREMENT OF ANNUAL, DETAILED INVEST-
MENT REPORTS APPLIED TO CERTAIN 401(k)
PLANS.
(a) IN GENERAL.—Section 104(b)(3) (29 U.S.C.
1024(b)(3)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B)(i) If, for any plan year, a plan includes a
qualified cash or deferred arrangement (as defined
in section 401(k)(2) of the Internal Revenue Code of
1986) and such plan covers less than 100 partici-
pants, the administrator shall furnish (within 60
days after the end of such plan year) to each partici-
pant and to each beneficiary receiving benefits under
the plan an annual investment report detailing such
information as the Secretary by regulation shall re-
quire.
‘‘(ii) Clause (i) shall not apply with respect to
any participant described in section 404(c).’’
(b) REGULATIONS.—
(1) IN GENERAL.—The Secretary of Labor, in
prescribing 
regulations 
required 
under 
section
104(b)(3)(B)(i) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1023(b)(3)(B)(i)),
as added by subsection (a), shall consider including
in the information required in an annual investment
report the following:
(A) Total plan assets and liabilities as of
the beginning and ending of the plan year.
(B) Plan income and expenses and con-
tributions made and benefits paid for the plan
year.
(C) Any transaction between the plan and
the employer, any fiduciary, or any 10-percent
owner during the plan year, including the acqui-
sition of any employer security or employer real
property.
(D) Any noncash contributions made to or
purchases of nonpublicly traded securities made
by the plan during the plan year without an ap-
praisal by an independent third party.
(2) ELECTRONIC TRANSFER.—The Secretary of
Labor in prescribing such regulations shall also
make provision for the electronic transfer of the re-
quired annual investment report by a plan adminis-
trator to plan participants and beneficiaries.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to plan years beginning after
the date of the enactment of this Act.
SEC. 203. INFORMATION REQUIRED TO BE PROVIDED TO
INVESTMENT MANAGERS OF 401(k) PLANS.
(a) IN GENERAL.—Section 105 (29 U.S.C. 1025) is
amended by adding at the end the following new sub-
section:
‘‘(e) If—
‘‘(1) the administrator of an individual account
plan described in section 401(k) of the Internal Rev-
enue Code of 1986 provides for investment of the
plan assets by means of a contractual arrangement
with another party, and
‘‘(2) such other party is not required under
such arrangement to separately account for benefits
accrued with respect to each participant and bene-
ficiary under this plan,
such administrator shall be treated as failing to meet the
requirements of subsection (a) unless, under such contrac-
tual arrangement, such administrator provides to such
other party such information as is necessary to enable
such party to separately account at any time for benefits
accrued with respect to each participant and beneficiary.’’
(b) CIVIL PENALTY FOR VIOLATIONS.—Paragraph
(1) of section 502(c) (29 U.S.C. 1132(c)(1)) is amended
by striking ‘‘or section 101(e)(1)’’ and inserting ‘‘, section
101(e)(1), or section 105(e)’’.
SEC. 204. STUDY ON INVESTMENTS IN COLLECTIBLES.
(a) STUDY.—The Secretary of Labor, in consultation
with the Secretary of the Treasury, shall study the extent
to which pension plans invest in collectibles and whether
such investments present a risk to the pension security
of the participants and beneficiaries of such plans.
(b) REPORT.—Not later than 12 months after the
date of the enactment of this Act, the Secretary of Labor
shall submit a report to the Congress containing the find-
ings of the study described in subsection (a) and any rec-
ommendations for legislative action.
SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM
MAKING LOANS THROUGH CREDIT CARDS
AND OTHER INTERMEDIARIES.
(a) IN GENERAL.—Subsection (a) of section 401 of
the Internal Revenue Code of 1986 is amended by adding
after paragraph (34) the following new paragraph:
‘‘(35) PROHIBITION OF LOANS THROUGH CRED-
IT CARDS AND OTHER INTERMEDIARIES.—A trust
shall not constitute a qualified trust under this sec-
tion if the plan makes any loan to any beneficiary
under the plan through the use of any credit card
or any other intermediary.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to plan years beginning after
the date of the enactment of this Act.
SEC. 206. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.
(a) IN GENERAL.—Section 4022A(c) (29 U.S.C.
1322a(c)) is amended—
‘‘(B) For purposes of this title, the term ‘majority
owner’ has the same meaning as substantial owner under
subparagraph (A), except that subparagraph (A) shall be
applied by substituting ‘50 percent or more’ for ‘more
than 10 percent’ each place it appears.
‘‘(C) In the case of a participant who is a majority
owner, the amount of benefits guaranteed under this sec-
tion shall not exceed the product of—
‘‘(i) a fraction (not to exceed 1) the numerator
of which is the number of years from the later of the
effective date or the adoption date of the plan to the
termination date, and the denominator of which is
30, and
‘‘(ii) the amount of the majority owner’s month-
ly benefits guaranteed under subsection (a) (as lim-
ited by paragraph (3) of this subsection).’’
(b) MODIFICATION OF ALLOCATION OF ASSETS.—
(1) 
Section 
4044(a)(4)(B) 
(29 
U.S.C.
1344(a)(4)(B)) is amended by striking ‘‘section
4022(b)(5)’’ and inserting ‘‘section 4022(b)(5)(C)’’.
(2) Section 4044(b) (29 U.S.C. 1344(b)) is
amended—
(A) by striking ‘‘(5)’’ in paragraph (2) and
inserting ‘‘(4), (5),’’, and
(B) 
by 
redesignating 
paragraphs 
(3)
through (6) as paragraphs (4) through (7), re-
spectively, and by inserting after paragraph (2)
the following new paragraph:
‘‘(3) If assets available for allocation under
paragraph (4) of subsection (a) are insufficient to
satisfy in full the benefits of all individuals who are
described in that paragraph, the assets shall be allo-
cated first to benefits described in subparagraph (A)
of that paragraph. Any remaining assets shall then
be allocated to subparagraph (B). If assets allocated
to subparagraph (B) are insufficient to satisfy in full
the benefits in that subparagraph, the assets shall
be allocated pro rata among individuals on the basis
of the present value (as of the termination date) of
their respective benefits described in that subpara-
graph.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan terminations—
(1) under section 4041(c) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C.
1341(c)) with respect to which notices of intent to
terminate are provided under section 4041(a)(2) of
such Act (29 U.S.C. 1341(a)(2)) on or after the
date of the enactment of this Act, or
(2) under section 4042 of such Act (29 U.S.C.
1342) with respect to which proceedings are insti-
tuted by the corporation on or after such date.
SEC. 209. REVERSION REPORT.
(a) IN GENERAL.—Section 4008 (29 U.S.C. 1308)
is amended by adding at the end the following new sub-
section:
‘‘(b) REVERSION REPORT.—As soon as practicable
after the close of each fiscal year, the Secretary of Labor
(acting in the Secretary’s capacity as chairman of the cor-
poration’s board) shall transmit to the President and the
Congress a report providing information on plans from
which residual assets were distributed to employers pursu-
ant to section 4044(d).’’
(b) CONFORMING AMENDMENT.—Section 4008 (29
U.S.C. 1308) is amended by striking ‘‘SEC. 4008.’’ and
inserting ‘‘SEC. 4008. (a) ANNUAL REPORT.—’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 1999.
Subtitle B—ERISA Enforcement
SEC. 211. CIVIL PENALTIES FOR BREACH OF FIDUCIARY
RESPONSIBILITIES 
MADE 
DISCRETIONARY,
ETC.
(a) IMPOSITION AND AMOUNT OF PENALTY MADE
DISCRETIONARY.—Section 502(l)(1) (29 U.S.C. 1132(l))
is amended—
(1) by striking ‘‘shall’’ and inserting ‘‘may’’,
and
(2) by striking ‘‘equal to’’ and inserting ‘‘not
greater than’’.
(b) 
APPLICABLE
RECOVERY
AMOUNT.—Section
502(l)(2) (29 U.S.C. 1132(l)(2)) is amended to read as
follows:
‘‘(2) For purposes of paragraph (1), the term ‘appli-
cable recovery amount’ means any amount which is recov-
ered from (or on behalf of) any fiduciary or other person
with respect to a breach or violation described in para-
graph (1) on or after the 30th day following receipt by
such fiduciary or other person of written notice from the
Secretary of the violation, whether paid voluntarily or by
order of a court in a judicial proceeding instituted by the
Secretary under paragraph (2) or (5) of subsection (a).
The Secretary may, in the Secretary’s sole discretion, ex-
tend the 30-day period described in the preceding sen-
tence.’’.
(c) OTHER RULES.—Section 502(l) is amended by
adding at the end the following new paragraphs:
‘‘(5) A person shall be jointly and severally liable for
the penalty described in paragraph (1) to the same extent
that such person is jointly and severally liable for the ap-
plicable recovery amount on which the penalty is based.
‘‘(6) No penalty shall be assessed under this sub-
section unless the person against whom the penalty is as-
sessed is given notice and opportunity for a hearing with
respect to the violation and applicable recovery amount.’’
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall apply to any breach of fiduciary re-
sponsibility or other violation of part 4 of title I of
the Employee Retirement Income Security Act of
1974 occurring on or after the date of the enact-
ment of this Act.
(2) 
TRANSITION
RULE.—In 
applying 
the
amendment made by subsection (b), a breach or
other violation occurring before the date of the en-
actment of this Act which continues after the 180th
day after such date (and which may be discontinued
at any time during its existence) shall be treated as
having occurred on the day after such date of enact-
ment.
SEC. 212. REPORTING AND ENFORCEMENT REQUIREMENTS
FOR EMPLOYEE BENEFIT PLANS.
(a) IN GENERAL.—Part 1 of subtitle B of title I (29
U.S.C. 1021 et seq.) is amended—
(1) by redesignating section 111 as section 112,
and
(2) inserting after section 110 the following
new section:
‘‘DIRECT REPORTING OF CERTAIN EVENTS
‘‘SEC. 111. (a) REQUIRED NOTIFICATIONS.—
‘‘(1) 
NOTIFICATIONS
BY
PLAN
ADMINIS-
TRATOR.—Within 5 business days after an adminis-
trator of an employee benefit plan determines that
there is evidence (or after the administrator is noti-
fied under paragraph (2)) that an irregularity may
have occurred with respect to the plan, the adminis-
trator shall—
‘‘(A) notify the Secretary of the irregu-
larity in writing; and
‘‘(B) furnish a copy of such notification to
the accountant who is currently engaged under
section 103(a)(3)(A).
‘‘(2) NOTIFICATIONS BY ACCOUNTANT.—
‘‘(A) IN
GENERAL.—Within 5 business
days after an accountant engaged by the ad-
ministrator of an employee benefit plan under
section 103(a)(3)(A) determines in connection
with such engagement that there is evidence
that an irregularity may have occurred with re-
spect to the plan, the accountant shall—
‘‘(i) notify the plan administrator of
the irregularity in writing, or
‘‘(ii) if the accountant determines that
there is evidence that the irregularity may
have involved an individual who is the plan
administrator or who is a senior official of
the plan administrator, notify the Sec-
retary of the irregularity in writing.
‘‘(B) NOTIFICATION
UPON
FAILURE
OF
PLAN ADMINISTRATOR TO NOTIFY.—If an ac-
countant who has provided notification to the
plan administrator pursuant to subparagraph
(A)(i) does not receive a copy of the administra-
tor’s notification to the Secretary required in
paragraph (1) within the 5-business day period
specified therein, the accountant shall furnish
to the Secretary a copy of the accountant’s no-
tification made to the plan administrator on the
next business day following such period.
‘‘(3) IRREGULARITY DEFINED.—
‘‘(A) For purposes of this subsection, the
term ‘irregularity’ means—
‘‘(i) a theft, embezzlement, or a viola-
tion of section 664 of title 18, United
States Code (relating to theft or embezzle-
ment from an employee benefit plan);
‘‘(ii) an extortion or a violation of sec-
tion 1951 of title 18, United States Code
(relating to interference with commerce by
threats or violence);
‘‘(iii) a bribery, a kickback, or a viola-
tion of section 1954 of title 18, United
States Code (relating to offer, acceptance,
or solicitation to influence operations of an
employee benefit plan);
‘‘(iv) a violation of section 1027 of
title 18, United States Code (relating to
false statements and concealment of facts
in relation to employee benefit plan
records); or
‘‘(v) a violation of section 411, 501, or
511 of this title (relating to criminal viola-
tions).
‘‘(B) The term ‘irregularity’ does not in-
clude any act or omission described in this
paragraph involving less than $1,000 unless
there is reason to believe that the act or omis-
sion may bear on the integrity of plan manage-
ment.
‘‘(b) NOTIFICATION UPON TERMINATION
OF EN-
GAGEMENT OF ACCOUNTANT.—
‘‘(1) 
NOTIFICATION
BY
PLAN
ADMINIS-
TRATOR.—Within 5 business days after the termi-
nation of an engagement of an accountant under
section 103(a)(3)(A) with respect to an employee
benefit plan, the administrator of such plan shall—
‘‘(A) notify the Secretary in writing of
such termination, giving the reasons for such
termination, and
‘‘(B) furnish the accountant whose engage-
ment was terminated with a copy of the notifi-
cation sent to the Secretary.
‘‘(2) NOTIFICATION BY ACCOUNTANT.—If the
accountant referred to in paragraph (1)(B) has not
received a copy of the administrator’s notification to
the Secretary as required under paragraph (1)(B),
or if the accountant disagrees with the reasons given
in the notification of termination of the engagement
for auditing services, the accountant shall notify the
Secretary in writing of the termination, giving the
reasons for the termination, within 10 business days
after the termination of the engagement.
‘‘(c) DETERMINATION OF PERIODS REQUIRED FOR
NOTIFICATION.—In determining whether a notification re-
quired under this section with respect to any act or omis-
sion has been made within the required number of busi-
ness days—
‘‘(1) the day on which such act or omission be-
gins shall not be included; and
‘‘(2) Saturdays, Sundays, and legal holidays
shall not be included.
For purposes of this subsection, the term ‘legal holiday’
means any Federal legal holiday and any other day ap-
pointed as a holiday by the State in which the person re-
sponsible for making the notification principally conducts
business.
‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICATION.—
No accountant or plan administrator shall be liable to any
person for any finding, conclusion, or statement made in
any notification made pursuant to subsection (a)(2) or
(b)(2), or pursuant to any regulations issued under those
subsections, if the finding, conclusion, or statement is
made in good faith.’’
(b) CIVIL PENALTY.—
(1) IN GENERAL.—Section 502(c) (29 U.S.C.
1132(c)) is amended by inserting after paragraph
(6) the following new paragraph:
‘‘(8)(A) The Secretary may assess a civil penalty of
up to $50,000 against any administrator who fails to pro-
vide the Secretary with any notification as required under
section 111.
‘‘(B) The Secretary may assess a civil penalty of up
to $50,000 against any accountant who knowingly and
willfully fails to provide the Secretary with any notification
as required under section 111.’’
(2) 
CONFORMING
AMENDMENT.—Section
502(a)(6) (29 U.S.C. 1132(a)(6)) is amended by
striking ‘‘or (6)’’ and inserting ‘‘(6), or (8)’’.
(c) CLERICAL AMENDMENTS.—
(1) Section 514(d) (29 U.S.C. 114(d)) is
amended by striking ‘‘111’’ and inserting ‘‘112’’.
(2) The table of contents in section 1 is amend-
ed by striking the item relating to section 111 and
inserting the following new items:
‘‘Sec. 111. Direct reporting of certain events.
‘‘Sec. 112. Repeal and effective date.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any irregularity or
termination of engagement described in the amendments
only if the 5-day period described in the amendments in
connection with the irregularity or termination commences
at least 90 days after the date of the enactment of this
Act.
SEC. 213. ADDITIONAL REQUIREMENTS FOR QUALIFIED
PUBLIC ACCOUNTANTS.
(a) IN GENERAL.—Section 103(a)(3)(D) (29 U.S.C.
1023(a)(3)(D)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(D)’’;
(2) by inserting ‘‘, with respect to any engage-
ment of an accountant under subparagraph (A)’’
after ‘‘means’’;
(3) by redesignating clauses (i), (ii), and (iii) as
subclauses (I), (II), and (III), respectively;
(4) by striking the period at the end of sub-
clause (III) (as so redesignated) and inserting a
comma;
(5) by adding after and below subclause (III)
(as so redesignated), the following: ‘‘but only if such
person meets the requirements of clauses (ii) and
(iii), with respect to such engagement.’’; and
(6) by adding at the end the following new
clauses:
‘‘(ii) A person meets the requirements of
this clause with respect to an engagement of
the person as an accountant under subpara-
graph (A) if the person—
‘‘(I) has in operation an appropriate
internal quality control system;
‘‘(II) has undergone a qualified exter-
nal quality control review of the person’s
accounting and auditing practices, includ-
ing such practices relevant to employee
benefit plans (if any), during the 3-year
period immediately preceding such engage-
ment; and
‘‘(III) has completed, within the 2 cal-
endar years immediately preceding such
engagement, such continuing education or
training as the Secretary in regulations de-
termines is necessary to maintain profes-
sional proficiency in connection with em-
ployee benefit plans.
‘‘(iii) A person meets the requirements of
this clause with respect to an engagement of
the person as an accountant under subpara-
graph (A) if the person meets such additional
requirements and qualifications of regulations
which the Secretary deems necessary to ensure
the quality of plan audits.
‘‘(iv) For purposes of clause (ii)(II), an ex-
ternal quality control review shall be treated as
qualified with respect to a person referred to in
clause (ii) if—
‘‘(I) such review is performed in ac-
cordance with the requirements of external
quality control review programs of recog-
nized auditing standard setting bodies, as
determined in regulations of the Secretary,
and
‘‘(II) in the case of any such person
who has, during the peer review period,
conducted 1 or more previous audits of
employee benefit plans, such review in-
cludes the review of an appropriate number
(determined as provided in such regula-
tions, but in no case less than 1) of plan
audits in relation to the scale of the per-
son’s auditing practice.’’
(b) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
apply with respect to plan years beginning on or
after the date which is 3 years after the date of the
enactment of this Act.
(2) RESTRICTIONS ON CONDUCTING EXAMINA-
TIONS.—Clause (iii) of section 103(a)(1)(D) of the
Employee Retirement Income Security Act of 1974
(as added by subsection (a)(6)) takes effect on the
date of enactment of this Act.
(3) REGULATIONS.—The Secretary shall issue
regulations under this section no later than Decem-
ber 31, 2000.
SEC. 214. INSPECTOR GENERAL STUDY.
(a) STUDY.—The Inspector General of the Depart-
ment of Labor shall conduct a study on the need for regu-
latory standards and procedures to authorize the Sec-
retary, in appropriate cases, to prohibit persons from serv-
ing as qualified accountants for purposes of section 103
of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1023).
(b) MATTERS TO BE STUDIED.—In conducting the
study under this section, the Inspector General shall ad-
dress whether standards and procedures to prohibit per-
sons from serving as qualified public accountants are like-
ly to improve the quality of employee benefit plan audits,
and the potential for increased costs to plans. If the In-
spector General concludes that regulations incorporating
standards and procedures would be appropriate, the study
shall include recommended standards and procedures.
(c) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Inspector General shall
submit a report on the results of the study conducted pur-
suant to this section to each house of Congress and the
Secretary of Labor.
Subtitle C—Increase in Excise Tax
on Employer Reversions
SEC. 221. INCREASE IN EXCISE TAX.
(a) IN GENERAL.—Section 4980 of the Internal Rev-
enue Code of 1986 (relating to tax on reversion of quali-
fied plan assets to employer) is amended—
(1) in subsection (a), by striking ‘‘20 percent’’
and inserting ‘‘35 percent’’; and
(2) in subsection (d)(1), by striking ‘‘sub-
stituting ‘50 percent’ for ‘20 percent’ with respect to
any employer reversion’’ and inserting ‘‘substituting
‘65 percent’ for ‘35 percent’ with respect to any em-
ployer reversion’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by this section shall
apply to reversions occurring after December 31,
1999.
(2) EXCEPTION.—The amendment made by this
section shall not apply to any reversion after Decem-
ber 31, 1999, if—
(A) in the case of plans subject to title IV
of the Employee Retirement Income Security
Act of 1974, a notice of intent to terminate
under such title was provided to participants
(or if no participants, to the Pension Benefit
Guaranty Corporation) before June 25, 1999,
(B) in the case of plans subject to title I
(and not to title IV) of such Act, a notice of in-
tent to reduce future accruals under section
204(h) of such Act was provided to participants
in connection with the termination before June
25, 1999,
(C) in the case of plans not subject to title
I or IV of such Act, a request for a determina-
tion letter with respect to the termination was
filed with the Secretary of the Treasury or the
Secretary’s delegate before June 25, 1999, or
(D) in the case of plans not subject to title
I or IV of such Act and having only 1 partici-
pant, a resolution terminating the plan was
adopted by the employer before June 25, 1999.
TITLE III—PORTABILITY
SEC. 301. FASTER VESTING OF EMPLOYER MATCHING CON-
TRIBUTIONS.
(a) AMENDMENT OF INTERNAL REVENUE CODE.—
Paragraph (2) of section 411(a) of the Internal Revenue
Code of 1986 (relating to employer contributions) is
amended—
(1) by inserting ‘‘, and, if applicable, (C)’’ after
‘‘or (B)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) MATCHING CONTRIBUTIONS.—In the
case of a plan that includes an accrued benefit
derived from matching contributions (as defined
in section 401(m)(4)(A)), the plan satisfies the
requirements of this subparagraph if—
‘‘(i) an employee who has completed
at least 3 years of service has a nonforfeit-
able right to 100 percent of the employee’s
accrued benefit derived from such match-
ing contributions, or
‘‘(ii) an employee has a nonforfeitable
right to a percentage of the employee’s ac-
crued 
benefit 
derived 
from 
employer
matching contributions (as so defined) de-
termined under the following table:
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.’’
(b) AMENDMENT OF ERISA.—Paragraph (2) of sec-
tion 203(a) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1053(a)) is amended—
(1) by inserting ‘‘, and, if applicable, (C)’’ after
‘‘or (B)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) MATCHING CONTRIBUTIONS.—In the
case of a plan that includes an accrued benefit
derived from matching contributions (as defined
in section 401(m)(4)(A) of the Internal Rev-
enue Code of 1986), the plan satisfies the re-
quirements of this subparagraph if—
‘‘(i) an employee who has completed
at least 3 years of service has a nonforfeit-
able right to 100 percent of the employee’s
accrued benefit derived from such match-
ing contributions, or
‘‘(ii) an employee has a nonforfeitable
right to a percentage of the employee’s ac-
crued 
benefit 
derived 
from 
employer
matching contributions (as so defined) de-
termined under the following table:
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.’’
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this
section shall apply to plan years beginning after De-
cember 31, 1999.
(2) APPLICATION TO CURRENT EMPLOYEES.—
The amendments made by this section shall not
apply to any employee who does not have at least 1
hour of service in any plan year beginning after De-
cember 31, 1999.
(3) COLLECTIVE BARGAINING AGREEMENTS.—
In the case of a plan maintained pursuant to 1 or
more collective bargaining agreements between em-
ployee representatives and 1 or more employers rati-
fied by the date of the enactment of this Act, the
amendments made by this section shall not apply to
employees covered by any such agreement in plan
years beginning before the earlier of—
(A) the later of—
(i) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof on or after such date of
enactment), or
(ii) January 1, 2000, or
(B) January 1, 2004.
SEC. 302. RATIONALIZATION OF THE RESTRICTIONS ON
DISTRIBUTIONS FROM 401(k) PLANS.
(a) IN GENERAL.—Section 401(k)(2)(B)(i)(I) of the
Internal Revenue Code of 1986 (relating to qualified cash
or deferred arrangements) is amended by striking ‘‘sepa-
ration from service’’ and inserting ‘‘severance from em-
ployment’’.
(b) BUSINESS SALE REQUIREMENTS DELETED.—
(1) IN GENERAL.—Section 401(k)(2)(B)(i)(II)
of the Internal Revenue Code of 1986 (relating to
qualified cash or deferred arrangements) is amended
by striking ‘‘an event’’ and inserting ‘‘a plan termi-
nation’’.
(2) 
CONFORMING
AMENDMENTS.—Section
401(k)(10) of such Code is amended—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) IN GENERAL.—A plan termination is
described in this paragraph if the termination
of the plan is without establishment or mainte-
nance of another defined contribution plan
(other than an employee stock ownership plan
as defined in section 4975(e)(7)).’’,
(B) by striking subparagraph (C), and
(C) by striking ‘‘OR DISPOSITION OF AS-
SETS OR SUBSIDIARY’’ in the heading.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
1999.
SEC. 303. TREATMENT OF TRANSFERS BETWEEN DEFINED
CONTRIBUTION PLANS.
(a) IN GENERAL.—Section 411(d)(6) of the Internal
Revenue Code of 1986 (relating to accrued benefit not to
be decreased by amendment) is amended by adding at the
end the following new subparagraph:
‘‘(D) PLAN TRANSFERS.—A defined con-
tribution plan (in this subparagraph referred to
as the ‘transferee plan’) shall not be treated as
100
failing to meet the requirements of this para-
graph merely because the transferee plan does
not provide some or all of the forms of distribu-
tion previously available under another defined
contribution plan (in this subparagraph referred
to as the ‘transferor plan’) to the extent that—
‘‘(i) the forms of distribution pre-
viously available under the transferor plan
applied to the account of a participant or
beneficiary under the transferor plan that
was transferred from the transferor plan to
the transferee plan pursuant to a direct
transfer rather than pursuant to a dis-
tribution from the transferor plan,
‘‘(ii) the terms of both the transferor
plan and the transferee plan authorize the
transfer described in clause (i),
‘‘(iii) the transfer described in clause
(i) was made pursuant to a voluntary elec-
tion by the participant or beneficiary
whose account was transferred to the
transferee plan,
‘‘(iv) the election described in clause
(iii) was made after the participant or ben-
101
eficiary received a notice describing the
consequences of making the election,
‘‘(v) if the transferor plan provides for
an annuity as the normal form of distribu-
tion under the plan in accordance with sec-
tion 417, the transfer is made with the
consent of the participant’s spouse (if
any), and such consent meets requirements
similar to the requirements imposed by
section 417(a)(2), and
‘‘(vi) the transferee plan allows the
participant or beneficiary described in
clause (iii) to receive any distribution to
which the participant or beneficiary is enti-
tled under transferee plan in the form of
a single sum distribution.’’
(b) CONFORMING AMENDMENT.—Section 204(g) of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1054(g)) is amended by adding at the end the
following new paragraph:
‘‘(4) A defined contribution plan (in this paragraph
referred to as the ‘transferee plan’) shall not be treated
as failing to meet the requirements of this subsection
merely because the transferee plan does not provide some
or all of the forms of distribution previously available
102
under another defined contribution plan (in this para-
graph referred to as the ‘transferor plan’) to the extent
that—
‘‘(A) the forms of distribution previously avail-
able under the transferor plan applied to the account
of a participant or beneficiary under the transferor
plan that was transferred from the transferor plan
to the transferee plan pursuant to a direct transfer
rather than pursuant to a distribution from the
transferor plan,
‘‘(B) the terms of both the transferor plan and
the transferee plan authorize the transfer described
in subparagraph (A),
‘‘(C) the transfer described in subparagraph
(A) was made pursuant to a voluntary election by
the participant or beneficiary whose account was
transferred to the transferee plan,
‘‘(D) the election described in subparagraph (C)
was made after the participant or beneficiary re-
ceived a notice describing the consequences of mak-
ing the election,
‘‘(E) if the transferor plan provides for an an-
nuity as the normal form of distribution under the
plan in accordance with section 205, the transfer is
made with the consent of the participant’s spouse (if
103
any), and such consent meets requirements similar
to the requirements imposed by section 205(c)(2),
and
‘‘(F) the transferee plan allows the participant
or beneficiary described in subparagraph (C) to re-
ceive any distribution to which the participant or
beneficiary is entitled under transferee plan in the
form of a single sum distribution.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to transfers after December 31,
1999.
SEC. 304. MISSING PARTICIPANTS.
(a) IN GENERAL.—Section 4050 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1350)
is amended by redesignating subsection (c) as subsection
(e) and by inserting after subsection (b) the following new
subsections:
‘‘(c) MULTIEMPLOYER
PLANS.—The corporation
shall prescribe rules similar to the rules in subsection (a)
for multiemployer plans covered by this title that termi-
nate under section 4041A.
‘‘(d) PLANS NOT OTHERWISE SUBJECT TO TITLE.—
‘‘(1) TRANSFER TO CORPORATION.—The plan
administrator of a plan described in paragraph (4)
104
may elect to transfer a missing participant’s benefits
to the corporation upon termination of the plan.
‘‘(2) INFORMATION TO THE CORPORATION.—To
the extent provided in regulations, the plan adminis-
trator of a plan described in paragraph (4) shall,
upon termination of the plan, provide the corpora-
tion information with respect to benefits of a miss-
ing participant if the plan transfers such benefits—
‘‘(A) to the corporation, or
‘‘(B) to an entity other than the corpora-
tion or a plan described in paragraph (4)(B)(ii).
‘‘(3) PAYMENT BY THE CORPORATION.—If ben-
efits of a missing participant were transferred to the
corporation under paragraph (1), the corporation
shall, upon location of the participant or beneficiary,
pay to the participant or beneficiary the amount
transferred (or the appropriate survivor benefit)
either—
‘‘(A) in a single sum (plus interest), or
‘‘(B) in such other form as is specified in
regulations of the corporation.
‘‘(4) PLANS DESCRIBED.—A plan is described
in this paragraph if—
‘‘(A) the plan is a pension plan (within the
meaning of section 3(2))—
105
‘‘(i) to which the provisions of this
section do not apply (without regard to
this subsection), and
‘‘(ii) which is not a plan described in
paragraphs (2) through (11) of section
4021(b), and
‘‘(B) at the time the assets are to be dis-
tributed upon termination, the plan—
‘‘(i) has missing participants, and
‘‘(ii) has not provided for the transfer
of assets to pay the benefits of all missing
participants to another pension plan (with-
in the meaning of section 3(2)).
‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.—
Subsections (a)(1) and (a)(3) shall not apply to a
plan described in paragraph (4).’’
(b) CONFORMING AMENDMENTS.—
(1) Section 206(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1056(f)) is
amended—
(A) by striking ‘‘title IV’’ and inserting
‘‘section 4050’’, and
(B) by striking ‘‘the plan shall provide
that,’’.
106
(2) Section 401(a)(34) of the Internal Revenue
Code of 1986 (relating to benefits of missing partici-
pants on plan termination) is amended by striking
‘‘title IV’’ and inserting ‘‘section 4050’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions made after final
regulations implementing subsections (c) and (d) of sec-
tion 4050 of the Employee Retirement Income Security
Act of 1974 (as added by subsection (a)), respectively, are
prescribed.
SEC. 305. ALLOWANCE OF ROLLOVERS FROM AND TO 403(b)
PLANS.
(a) ROLLOVERS FROM SECTION 403(b) PLANS.—
Section 403(b)(8)(A)(ii) of the Internal Revenue Code of
1986 (relating to rollover amounts) is amended by striking
‘‘such distribution’’ and all that follows and inserting
‘‘such distribution to an eligible retirement plan described
in section 402(c)(8)(B), and’’.
(b) ROLLOVERS TO SECTION 403(b) PLANS.—Sec-
tion 402(c)(8)(B) of such Code (defining eligible retire-
ment plan) is amended by striking ‘‘and’’ at the end of
clause (ii), by striking the period at the end of clause (iv)
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing:
107
‘‘(v) an annuity contract described in
section 403(b).’’
(c) CONFORMING AMENDMENTS.—
(1) Section 72(o)(4) of such Code is amended
by 
striking 
‘‘and 
408(d)(3)’’ 
and 
inserting
‘‘403(b)(8), and 408(d)(3)’’.
(2) Section 401(a)(31)(B) of such Code is
amended by striking ‘‘and 403(a)(4)’’ and inserting
‘‘, 403(a)(4), and 403(b)(8)’’.
(3) Subparagraph (B) of section 403(b)(8) of
such Code is amended by inserting ‘‘and (9)’’ after
‘‘through (7)’’.
(4) Subparagraphs (A) and (B) of section
415(b)(2) of such Code are each amended by strik-
ing ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), and
408(d)(3)’’.
(d) EFFECTIVE DATE; SPECIAL RULE.—
(1) EFFECTIVE DATE.—The amendments made
by this section shall apply to distributions after De-
cember 31, 1999.
(2) SPECIAL RULE.—Notwithstanding any other
provision of law, subsections (h)(3) and (h)(5) of
section 1122 of the Tax Reform Act of 1986 shall
not apply to any distribution from an eligible retire-
ment plan on behalf of an individual if there was a
108
rollover to such plan on behalf of such individual
which is permitted solely by reason of any amend-
ment made by this section.
SEC. 306. ROLLOVER CONTRIBUTIONS FROM DEFERRED
COMPENSATION 
PLANS 
OF 
STATE 
AND
LOCAL GOVERNMENTS.
(a) ROLLOVERS FROM SECTION 457 PLANS.—
(1) IN GENERAL.—Section 457(e) of the Inter-
nal Revenue Code of 1986 (relating to other defini-
tions and special rules) is amended by adding at the
end the following:
‘‘(16) ROLLOVER AMOUNTS.—
‘‘(A) GENERAL RULE.—In the case of an
eligible deferred compensation plan of an eligi-
ble employer described in paragraph (1)(A),
if—
‘‘(i) any portion of the balance to the
credit of an employee in such plan is paid
to such employee in a rollover distribution
(other than a distribution described in sub-
section (d)(1)(A)(iii) or in subparagraph
(A) or (B) of section 402(c)(4)),
‘‘(ii) the employee transfers any por-
tion of the property such employee receives
in such distribution to an individual retire-
109
ment 
plan 
(as 
defined 
in 
section
7701(a)(37), and
‘‘(iii) in the case of a distribution of
property other than money, the amount so
transferred consists of the property distrib-
uted,
then such distribution (to the extent so trans-
ferred) shall not be includible in gross income
for the taxable year in which paid.
‘‘(B) CERTAIN
RULES
MADE
APPLICA-
BLE.—Rules similar to the rules of section
401(a)(31), paragraphs (2), (3), (5), (6), (7),
and (9) of section 402(c), and section 402(f)
shall apply for purposes of subparagraph (A).’’
(2) DISTRIBUTION
REQUIREMENTS.—Section
457(d)(1)(A) of such Code (relating to distribution
requirements) is amended by inserting ‘‘except as
provided in subsection (e)(16),’’ after ‘‘(A)’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 72(o)(4) of such Code is
amended—
(i) by striking ‘‘and 408(d)(3)’’ and
inserting ‘‘408(d)(3), and 457(e)(16)’’,
(ii) by inserting ‘‘or excludable’’ after
‘‘deductible’’ each place it appears, and
110
(iii) in the heading by inserting ‘‘OR
EXCLUDABLE’’ after ‘‘DEDUCTIBLE’’.
(B) Section 219(d)(2) of such Code is
amended by striking ‘‘or 408(d)(3)’’ and insert-
ing ‘‘408(d)(3), or 457(e)(16)’’.
(C) Section 401(a)(31)(B) of such Code is
amended by striking ‘‘and 403(b)(8)’’ and in-
serting ‘‘, 403(b)(8), and 457(e)(16)’’.
(D) Paragraph (4) of section 402(c) of
such Code is amended by inserting ‘‘or in an el-
igible deferred compensation plan (as defined in
section 457(b)) of an eligible employer de-
scribed in section 457(e)(1)(A)’’ after ‘‘qualified
trust’’.
(E) Section 408(a)(1) of such Code is
amended by striking ‘‘or 403(b)(8)’’ and insert-
ing ‘‘, 403(b)(8), or 457(e)(16)’’.
(F) Section 408(d)(3)(A)(ii) of such Code
is amended by striking ‘‘or’’ after ‘‘501(a)’’ and
inserting a comma, and by inserting ‘‘, or from
an eligible deferred compensation plan described
in section 457(b)’’ after ‘‘contribution)’’.
(G) Subparagraphs (A) and (B) of section
415(b)(2) of such Code are each amended by
111
striking 
‘‘and 
408(d)(3)’’ 
and 
inserting
‘‘408(d)(3), and 457(e)(16)’’.
(H) Section 4973(b)(1)(A) of such Code is
amended by striking ‘‘or 408(d)(3)’’ and insert-
ing ‘‘408(d)(3), or 457(e)(16)’’.
(d) EFFECTIVE DATE; SPECIAL RULE.—
(1) EFFECTIVE DATE.—The amendments made
by this section shall apply to distributions after De-
cember 31, 1999.
(2) SPECIAL RULE.—Notwithstanding any other
provision of law, subsections (h)(3) and (h)(5) of
section 1122 of the Tax Reform Act of 1986 shall
not apply to any distribution from an individual re-
tirement plan on behalf of an individual if there was
a rollover to such plan on behalf of such individual
which is permitted solely by reason of any amend-
ment made by this section.
SEC. 307. EXTENSION OF 60-DAY ROLLOVER PERIOD IN THE
CASE OF PRESIDENTIALLY DECLARED DISAS-
TERS AND SERVICE IN COMBAT ZONE.
(a) IN GENERAL.—Paragraph (1) of section 7508(a)
of the Internal Revenue Code of 1986 (relating to time
postponed for performing certain acts) is amended by
striking ‘‘and’’ at the end of subparagraph (J), by redesig-
nating subparagraph (K) as subparagraph (L), and by in-
112
serting after subparagraph (J) the following new subpara-
graph:
‘‘(K) Rollover of any distribution within
the 60-day period specified in section 402(c)(3)
or 408(d)(3)(A); and’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to distributions made after Decem-
ber 31, 1999.
SEC. 308. PURCHASE OF SERVICE CREDIT IN GOVERN-
MENTAL DEFINED BENEFIT PLANS.
(a) 403(b) PLANS.—Subsection (b) of section 403 of
the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
‘‘(13) TRUSTEE-TO-TRUSTEE
TRANSFERS
TO
PURCHASE
PERMISSIVE
SERVICE
CREDIT.—No
amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer to a defined
benefit governmental plan (as defined in section
414(d)) if such transfer is—
‘‘(A) for the purchase of permissive service
credit (as defined in section 415(n)(3)(A))
under such plan, or
‘‘(B) a repayment to which section 415
does not apply by reason of subsection (k)(3)
thereof.’’
113
(b) 457 PLANS.—Subsection (e) of section 457 of
such Code, as amended by section 306, is amended by add-
ing at the end the following new paragraph:
‘‘(17) TRUSTEE-TO-TRUSTEE
TRANSFERS
TO
PURCHASE
PERMISSIVE
SERVICE
CREDIT.—No
amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer to a defined
benefit governmental plan (as defined in section
414(d)) if such transfer is—
‘‘(A) for the purchase of permissive service
credit (as defined in section 415(n)(3)(A))
under such plan, or
‘‘(B) a repayment to which section 415
does not apply by reason of subsection (k)(3)
thereof.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to trustee-to-trustee transfers after
December 31, 1999.
TITLE IV—COMPREHENSIVE
WOMEN’S PENSION PROTECTION
Subtitle A—Pension Reform
SEC. 401. PENSION RIGHT TO KNOW PROPOSALS.
(a) SPOUSE’S RIGHT TO KNOW DISTRIBUTION IN-
FORMATION.—
114
(1) AMENDMENT
OF
INTERNAL
REVENUE
CODE.—Paragraph (3) of section 417(a) of the In-
ternal Revenue Code of 1986 (relating to definitions
and special rules for purposes of minimum survivor
annuity requirements) is amended by adding at the
end the following new subparagraph:
‘‘(C) EXPLANATION TO SPOUSE.—At the
time a plan provides a participant with a writ-
ten explanation under subparagraph (A) or (B),
such plan shall provide a copy of such expla-
nation to such participant’s spouse. If the last
known address of the spouse is the same as the
last known address of the participant, the re-
quirement of the preceding sentence shall be
treated as met if the copy referred to in the
preceding sentence is included in a single mail-
ing made to such address and addressed to both
such participant and spouse.’’
(2) AMENDMENT OF ERISA.—Paragraph (3) of
section 205(c) of Employee Retirement Income Se-
curity Act of 1974 is amended by adding at the end
the following new subparagraph:
‘‘(C) EXPLANATION TO SPOUSE.—At the
time a plan provides a participant with a writ-
ten explanation under subparagraph (A) or (B),
115
such plan shall provide a copy of such expla-
nation to such participant’s spouse. If the last
known address of the spouse is the same as the
last known address of the participant, the re-
quirement of the preceding sentence shall be
treated as met if the copy referred to in the
preceding sentence is included in a single mail-
ing made to such address and addressed to both
such participant and spouse.’’
(b) EMPLOYEE’S RIGHT TO KNOW OF OPPORTUNITY
FOR ELECTIVE CONTRIBUTIONS UNDER 401(k) PLANS.—
Subparagraph (D) of section 401(k)(12) of the Internal
Revenue Code of 1986 (relating to notice requirements)
is amended—
(1) by striking ‘‘, within a reasonable period be-
fore any year,’’ and inserting ‘‘before the 60th day
before the beginning of any year’’, and
(2) by adding at the end the following new
flush sentence:
‘‘The requirements of paragraph (11)(B)(iii)
shall apply for purposes of this subparagraph.’’
SEC. 402. WOMEN’S PENSION TOLL-FREE PHONE NUMBER.
(a) IN GENERAL.—The Secretary of Labor shall con-
tract with an independent organization to create a wom-
116
en’s pension toll-free telephone number and contact to
serve as—
(1) a resource for women on pension questions
and issues;
(2) a source for referrals to appropriate agen-
cies; and
(3) a source for printed information.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated $1,000,000 for each of
the fiscal years 2000, 2001, 2002, and 2003 to carry out
subsection (a).
SEC. 403. MODIFICATION OF GOVERNMENT PENSION OFF-
SET.
(a) 
WIFE’S
INSURANCE
BENEFITS.—Section
202(b)(4)(A) of the Social Security Act (42 U.S.C.
402(b)(4)(A)) is amended—
(1) by inserting ‘‘the amount (if any) by which
the sum of such benefit (before reduction under this
paragraph) and’’ after ‘‘two-thirds of ’’; and
(2) by inserting ‘‘exceeds the amount described
in subsection (z) for such month,’’ before ‘‘if ’’.
(b) HUSBAND’S
INSURANCE
BENEFITS.—Section
202(c)(2)(A) of such Act (42 U.S.C. 402(c)(2)(A)) is
amended—
117
(1) by inserting ‘‘the amount (if any) by which
the sum of such benefit (before reduction under this
paragraph) and’’ after ‘‘two-thirds of ’’; and
(2) by inserting ‘‘exceeds the amount described
in subsection (z) for such month,’’ before ‘‘if ’’.
(c) 
WIDOW’S
INSURANCE
BENEFITS.—Section
202(e)(7)(A) of such Act (42 U.S.C. 402(e)(7)(A)) is
amended—
(1) by inserting ‘‘the amount (if any) by which
the sum of such benefit (before reduction under this
paragraph) and’’ after ‘‘two-thirds of ’’; and
(2) by inserting ‘‘exceeds the amount described
in subsection (z) for such month,’’ before ‘‘if ’’.
(d) WIDOWER’S
INSURANCE
BENEFITS.—Section
202(f)(2)(A) of such Act (42 U.S.C. 402(f)(2)(A)) is
amended—
(1) by inserting ‘‘the amount (if any) by which
the sum of such benefit (before reduction under this
paragraph) and’’ after ‘‘two-thirds of ’’; and
(2) by inserting ‘‘exceeds the amount described
in subsection (z) for such month,’’ before ‘‘if ’’.
(e) MOTHER’S AND FATHER’S INSURANCE BENE-
FITS.—Section 202(g)(4)(A) of such Act (42 U.S.C.
402(g)(4)(A)) is amended—
118
(1) by inserting ‘‘the amount (if any) by which
the sum of such benefit (before reduction under this
paragraph) and’’ after ‘‘two-thirds of ’’; and
(2) by inserting ‘‘exceeds the amount described
in subsection (z) for such month,’’ before ‘‘if ’’.
(f) AMOUNT DESCRIBED.—Section 202 of such Act
(42 U.S.C. 402) is amended by adding at the end the fol-
lowing:
‘‘(z) The amount described in this subsection is, for
months in each 12-month period beginning in December
of 1999, and each succeeding calendar year, the greater
of—
‘‘(1) $1,200; or
‘‘(2) the amount applicable for months in the
preceding 12-month period, increased by the cost-of-
living adjustment for such period determined for an
annuity under section 8340 of title 5, United States
Code (without regard to any other provision of
law).’’
(g) LIMITATIONS ON REDUCTIONS IN BENEFITS.—
Section 202 of such Act (42 U.S.C. 402), as amended by
subsection (f), is amended by adding at the end the fol-
lowing:
‘‘(aa) For any month after December 1999, in no
event shall an individual receive a reduction in a benefit
119
under subsection (b)(4)(A), (c)(2)(A), (e)(7)(A), (f)(2)(A),
or (g)(4)(A) for the month that is more than the reduction
in such benefit that would have applied for such month
under such subsections as in effect on December 1, 1999.’’
(h) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to monthly insurance
benefits payable under title II of the Social Security Act
for months after December 1999.
SEC. 404. PERIODS OF FAMILY AND MEDICAL LEAVE
TREATED AS HOURS OF SERVICE FOR PEN-
SION PARTICIPATION AND VESTING.
(a) AMENDMENTS OF INTERNAL REVENUE CODE.—
(1) PARTICIPATION.—
(A) IN GENERAL.—Paragraph (3) of sec-
tion 410(a) (relating to minimum participation
standards) is amended by adding at the end the
following new subparagraph:
‘‘(E) FAMILY AND MEDICAL LEAVE TREAT-
ED AS SERVICE.—
‘‘(i) IN
GENERAL.—For purposes of
this subsection, in the case of an individual
who is absent from work on leave required
to be given to such individual under the
Family and Medical Leave Act of 1993,
the plan shall treat as hours of service—
120
‘‘(I) the hours of service which
otherwise would normally have been
credited to such individual but for
such absence, or
‘‘(II) in any case in which the
plan is unable to determine the hours
described in subclause (I), 8 hours of
service per day of absence.
‘‘(ii) YEAR
TO
WHICH
HOURS
ARE
CREDITED.—The hours described in clause
(i) shall be treated as hours of service as
provided in this subparagraph—
‘‘(I) only in the year in which the
absence from work begins, if section
411(a)(5)(E)(ii)(I) requires hours to
be credited to the year in which the
absence from work begins, or
‘‘(II) in any other case, in the
immediately following year.’’
(B) COORDINATION WITH TREATMENT OF
MATERNITY AND PATERNITY ABSENCES UNDER
BREAK IN SERVICE RULES.—Subparagraph (E)
of section 410(a)(5) is amended—
121
(i) by inserting ‘‘NOT UNDER FAMILY
AND MEDICAL LEAVE ACT OF 1993’’ after
‘‘ABSENCES’’ in the heading, and
(ii) by adding at the end of clause (i)
the following new sentence: ‘‘The preceding
sentence shall apply to an absence from
work only if no part of such absence is re-
quired to be given under the Family and
Medical Leave Act of 1993.’’
(2) VESTING.—
(A) IN GENERAL.—Paragraph (5) of sec-
tion 411(a) (relating to minimum vesting stand-
ards) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(E) FAMILY AND MEDICAL LEAVE TREAT-
ED AS SERVICE.—
‘‘(i) IN
GENERAL.—For purposes of
this subsection, in the case of an individual
who is absent from work on leave required
to be given to such individual under the
Family and Medical Leave Act of 1993,
the plan shall treat as hours of service—
‘‘(I) the hours of service which
otherwise would normally have been
122
credited to such individual but for
such absence, or
‘‘(II) in any case in which the
plan is unable to determine the hours
described in subclause (I), 8 hours of
service per day of absence.
‘‘(ii) YEAR
TO
WHICH
HOURS
ARE
CREDITED.—The hours described in clause
(i) shall be treated as hours of service as
provided in this subparagraph—
‘‘(I) only in the year in which the
absence from work begins, if the par-
ticipant’s rights in his accrued benefit
derived from employer contributions
are to any extent not nonforfeitable
and the participant would have a year
of service solely because the period of
absence is treated as hours of service
as provided in clause (i); or
‘‘(II) in any other case, in the
immediately following year.’’
(B) COORDINATION WITH TREATMENT OF
MATERNITY AND PATERNITY ABSENCES UNDER
BREAK IN SERVICE RULES.—Subparagraph (E)
of section 411(a)(6) is amended—
123
(i) by inserting ‘‘NOT UNDER FAMILY
AND MEDICAL LEAVE ACT OF 1993’’ after
‘‘ABSENCES’’ in the heading, and
(ii) by adding at the end of clause (i)
the following new sentence: ‘‘The preceding
sentence shall apply to an absence from
work only if no part of such absence is re-
quired to be given under the Family and
Medical Leave Act of 1993.’’
(b) AMENDMENTS OF ERISA.—
(1) PARTICIPATION.—
(A) IN GENERAL.—Paragraph (3) of sec-
tion 202(a) of the Employee Retirement Income
Security Act of 1974 (relating to minimum par-
ticipation standards) is amended by adding at
the end the following new subparagraph:
‘‘(E)(i) For purposes of this subsection, in the case
of an individual who is absent from work on leave required
to be given to such individual under the Family and Med-
ical Leave Act of 1993, the plan shall treat as hours of
service—
‘‘(I) the hours of service which otherwise would
normally have been credited to such individual but
for such absence, or
124
‘‘(II) in any case in which the plan is unable to
determine the hours described in subclause (I), 8
hours of service per day of absence.
‘‘(ii) The hours described in clause (i) shall be treated
as hours of service as provided in this subparagraph—
‘‘(I) only in the year in which the absence from
work begins, if section 203(b)(2)(E)(ii)(I) requires
hours to be credited to the year in which the absence
from work begins, or
‘‘(II) in any other case, in the immediately fol-
lowing year.’’
(B) COORDINATION WITH TREATMENT OF
MATERNITY AND PATERNITY ABSENCES UNDER
BREAK IN SERVICE RULES.—Subparagraph (A)
of section 202(b)(5) of such Act is amended by
adding at the end of clause (i) the following
new sentence: ‘‘The preceding sentence shall
apply to an absence from work only if no part
of such absence is required to be given under
the Family and Medical Leave Act of 1993.’’
(2) VESTING.—
(A) IN GENERAL.—Paragraph (2) of sec-
tion 203(b) of such Act (relating to minimum
vesting standards) is amended by adding at the
end the following new subparagraph:
125
‘‘(E)(i) For purposes of this subsection, in the case
of an individual who is absent from work on leave required
to be given to such individual under the Family and Med-
ical Leave Act of 1993, the plan shall treat as hours of
service—
‘‘(I) the hours of service which otherwise would
normally have been credited to such individual but
for such absence, or
‘‘(II) in any case in which the plan is unable to
determine the hours described in subclause (I), 8
hours of service per day of absence.
‘‘(ii) The hours described in clause (i) shall be treated
as hours of service as provided in this subparagraph—
‘‘(I) only in the year in which the absence from
work begins, if the participant’s rights in his ac-
crued benefit derived from employer contributions
are to any extent not nonforfeitable and the partici-
pant would have a year of service solely because the
period of absence is treated as hours of service as
provided in clause (i); or
‘‘(II) in any other case, in the immediately fol-
lowing year.’’
(B) COORDINATION WITH TREATMENT OF
MATERNITY AND PATERNITY ABSENCES UNDER
BREAK IN SERVICE RULES.—Clause (i) of sec-
126
tion 203(b)(3)(E) of such Act is amended by
adding at the end of clause (i) the following
new sentence: ‘‘The preceding sentence shall
apply to an absence from work only if no part
of such absence is required to be given under
the Family and Medical Leave Act of 1993.’’
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to plan years beginning after December
31, 1999.
(2) APPLICATION TO CURRENT EMPLOYEES.—
The amendments made by this section shall not
apply to any employee who does not have at least 1
hour of service in any plan year beginning after De-
cember 31, 1999.
SEC. 405. PENSION INTEGRATION RULES.
(a) APPLICABILITY OF NEW INTEGRATION RULES
EXTENDED TO ALL EXISTING ACCRUED BENEFITS.—
Notwithstanding subsection (c)(1) of section 1111 of the
Tax Reform Act of 1986 (relating to effective date of ap-
plication of nondiscrimination rules to integrated plans)
(100 Stat. 2440), effective for plan years beginning after
the date of the enactment of this Act, the amendments
made by subsection (a) of such section 1111 shall also
127
apply to benefits attributable to plan years beginning on
or before December 31, 1988.
(b) INTEGRATION DISALLOWED
FOR SIMPLIFIED
EMPLOYEE PENSIONS.—
(1) IN GENERAL.—Subparagraph (D) of section
408(k)(3) of the Internal Revenue Code of 1986 (re-
lating to permitted disparity under rules limiting
discrimination under simplified employee pensions)
is repealed.
(2) CONFORMING AMENDMENT.—Subparagraph
(C) of such section 408(k)(3) is amended by striking
‘‘and except as provided in subparagraph (D),’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to taxable
years beginning on or after January 1, 1999.
(c) EVENTUAL REPEAL OF INTEGRATION RULES.—
Effective for plan years beginning on or after January 1,
2004—
(1) subparagraphs (C) and (D) of section
401(a)(5) of the Internal Revenue Code of 1986 (re-
lating to pension integration exceptions under non-
discrimination requirements for qualification) are re-
pealed, and subparagraph (E) of such section
401(a)(5) is redesignated as subparagraph (C); and
128
(2) subsection (l) of section 401 of such Code
(relating to nondiscriminatory coordination of de-
fined contribution plans with OASDI) is repealed.
SEC. 406. DIVISION OF PENSION BENEFITS UPON DIVORCE.
(a) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—Section 414(p) of the Internal Revenue
Code of 1986 (relating to qualified domestic relations
order defined) is amended by redesignating paragraph
(12) as paragraph (13) and by adding at the end the fol-
lowing new paragraph:
‘‘(12) SPECIAL RULES AND PROCEDURES FOR
DOMESTIC RELATIONS ORDERS NOT SPECIFYING DI-
VISION OF PENSION BENEFITS.—
‘‘(A) IN GENERAL.—If—
‘‘(i) a domestic relations order (in-
cluding an annulment or other order of
marital dissolution) relates to provision of
marital property with respect to a mar-
riage of at least 5 years duration between
the participant and the former spouse,
‘‘(ii)(I) such order (and any prior
order) does not specifically provide that
pension benefits were considered by the
parties and no division is intended, and
129
‘‘(II) such order is not a qualified do-
mestic relations order without regard to
this paragraph and there is no other prior
qualified domestic relations order issued in
connection with the dissolution of the mar-
riage to which such order relates, and
‘‘(iii) the former spouse notifies a plan
within the period prescribed under sub-
paragraph (C) that the former spouse is
entitled to benefits under the plan in ac-
cordance with the provisions of this para-
graph,
then such domestic relations order shall be
treated as a qualified domestic relations order
for purposes of this subsection and section
401(a)(13).
‘‘(B) AMOUNT OF BENEFIT.—
‘‘(i) IN GENERAL.—Any domestic rela-
tions order treated as a qualified domestic
relations order under subparagraph (A)
shall be treated as specifying that the
former spouse is entitled to the applicable
percentage of the marital share of the par-
ticipant’s accrued benefit.
130
‘‘(ii) MARITAL SHARE.—For purposes
of clause (i), the marital share of a partici-
pant’s accrued benefit is an amount equal
to the product of—
‘‘(I) such benefit as of the date
of the first payment under the plan
(to the extent such accrued benefit is
vested at the date of the divorce or
any later date), and
‘‘(II) a fraction the numerator of
which is the period of participation by
the participant under the plan start-
ing with the date of marriage and
ending with the date of divorce, and
the denominator of which is the total
period of participation by the partici-
pant under the plan.
‘‘(iii) APPLICABLE
PERCENTAGE.—
For purposes of this subparagraph, the ap-
plicable percentage is—
‘‘(I) except as provided in sub-
clause (II), 50 percent, and
‘‘(II) in the case of a participant
who fails to provide the plan with no-
tice of a domestic relations order
131
within the time prescribed under sub-
paragraph (C), 67 percent.
‘‘(C) NOTICE REQUIREMENTS.—
‘‘(i) NOTICE
BY
EMPLOYEE.—Each
employee who is a participant in a pension
plan shall, within 60 days after the dis-
solution of the marriage of the employee—
‘‘(I) notify the plan administrator
of the plan of such dissolution, and
‘‘(II) provide to the plan adminis-
trator a copy of the domestic relations
order (including an annulment or
other order of marital dissolution)
providing for such dissolution and the
last known address of the employee’s
former spouse.
‘‘(ii) NOTICE
BY
PLAN
ADMINIS-
TRATOR.—Each plan administrator receiv-
ing notice under clause (i) shall promptly
notify the former spouse of a participant of
such spouse’s rights under this paragraph,
including the time period within which
such spouse is required to notify the plan
of the spouse’s intention to claim rights
under this paragraph.
132
‘‘(iii) NOTICE BY FORMER SPOUSE.—
A former spouse may notify the plan ad-
ministrator of such spouse’s intent to claim
rights under this paragraph at any time
before the last day of the 1-year period fol-
lowing receipt of notice under clause (ii).
‘‘(iv) COORDINATION WITH PLAN PRO-
CEDURES.—The determination under para-
graph (6)(A)(ii) with respect to a domestic
relations order to which this paragraph ap-
plies shall be made within a reasonable pe-
riod of time after the plan administrator
receives the notice described in clause (iii).
‘‘(D) INTERPRETATION AS QUALIFIED DO-
MESTIC
RELATIONS
ORDER.—Each plan shall
establish reasonable rules for determining how
any such deemed domestic relations order is to
be interpreted under the plan so as to con-
stitute a qualified domestic relations order that
satisfies paragraphs (2) through (4) (and a
copy of such rules shall be provided to such
former spouse promptly after delivery of the di-
vorce decree). Such rules—
‘‘(i) may delay the effect of such an
order until the earlier of the date the par-
133
ticipant is fully vested or has terminated
employment,
‘‘(ii) may allow the former spouse to
be paid out immediately,
‘‘(iii) shall permit the former spouse
to be paid not later than the earliest retire-
ment age under the plan or the partici-
pant’s death,
‘‘(iv) may require the submitter of the
divorce decree to present a marriage cer-
tificate or other evidence of the marriage
date to assist in benefit calculations, and
‘‘(v) may conform to the rules applica-
ble to qualified domestic relations orders
regarding form or type of benefit.’’
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.—Section 206(d)(3) of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1056(d)(3)) is amended by redesignating sub-
paragraph (N) as subparagraph (O) and by inserting after
subparagraph (M) the following new subparagraph:
‘‘(N) SPECIAL
RULES
AND
PROCEDURES
FOR DOMESTIC RELATIONS ORDERS NOT SPECI-
FYING DIVISION OF PENSION BENEFITS.—
‘‘(i) IN GENERAL.—If—
134
‘‘(I) a domestic relations order
(including an annulment or other
order of marital dissolution) relates to
provision of marital property with re-
spect to a marriage of at least 5 years
duration between the participant and
the former spouse,
‘‘(II)(aa) such order (and any
prior order) does not specifically pro-
vide that pension benefits were consid-
ered by the parties and no division is
intended, or
‘‘(bb) such order is a qualified
domestic relations order without re-
gard to this subparagraph or there is
no other prior qualified domestic rela-
tions order issued in connection with
the dissolution of the marriage to
which such order relates, and
‘‘(III) the former spouse notifies
a plan within the period prescribed
under clause (iii) that the former
spouse is entitled to benefits under
the plan in accordance with the provi-
sions of this subparagraph,
135
then such domestic relations order shall be
treated as a qualified domestic relations
order for purposes of this paragraph.
‘‘(ii) AMOUNT OF BENEFIT.—
‘‘(I) IN GENERAL.—Any domestic
relations order treated as a qualified
domestic relations order under clause
(i) shall be treated as specifying that
the former spouse is entitled to the
applicable percentage of the marital
share of the participant’s accrued ben-
efit.
‘‘(II) 
MARITAL
SHARE.—For
purposes of subclause (I), the marital
share of a participant’s accrued ben-
efit is an amount equal to the product
of—
‘‘(aa) such benefit as of the
date of the first payment under
the plan (to the extent such ac-
crued benefit is vested at the
date of the divorce or any later
date), and
‘‘(bb) 
the 
numerator 
of
which is the period of participa-
136
tion by the participant under the
plan starting with the date of
marriage and ending with the
date of divorce, and the denomi-
nator of which is the total period
of participation by the partici-
pant under the plan.
‘‘(III) 
APPLICABLE
PERCENT-
AGE.—For purposes of this clause, the
applicable percentage is—
‘‘(aa) except as provided in
item (bb), 50 percent, and
‘‘(bb) in the case of a partic-
ipant who fails to provide the
plan with notice of a domestic re-
lations order within the time pre-
scribed under clause (iii), 67 per-
cent.
‘‘(iii) NOTICE REQUIREMENTS.—
‘‘(I) NOTICE
BY
EMPLOYEE.—
Each employee who is a participant in
a pension plan shall, within 60 days
after the dissolution of the marriage
of the employee—
137
‘‘(aa) notify the plan admin-
istrator of the plan of such dis-
solution, and
‘‘(bb) provide to the plan ad-
ministrator a copy of the domes-
tic relations order (including an
annulment or other order of mar-
ital dissolution) providing for
such dissolution and the last
known address of the employee’s
former spouse.
‘‘(II) NOTICE BY PLAN ADMINIS-
TRATOR.—Each plan administrator
receiving notice under subclause (I)
shall promptly notify the former
spouse of a participant of such
spouse’s rights under this subpara-
graph, including the time period with-
in which such spouse is required to
notify the plan of the spouse’s inten-
tion to claim rights under this sub-
paragraph.
‘‘(III) 
NOTICE
BY
FORMER
SPOUSE.—A former spouse may notify
the 
plan 
administrator 
of 
such
138
spouse’s intent to claim rights under
this subparagraph at any time before
the last day of the 1-year period fol-
lowing receipt of notice under sub-
clause (II).
‘‘(IV) COORDINATION WITH PLAN
PROCEDURES.—The 
determination
under subparagraph (G)(i)(II) with
respect to a domestic relations order
to which this subparagraph applies
shall be made within a reasonable pe-
riod of time after the plan adminis-
trator receives the notice described in
subclause (III).
‘‘(iv) INTERPRETATION AS QUALIFIED
DOMESTIC RELATIONS ORDER.—Each plan
shall establish reasonable rules for deter-
mining how any such deemed domestic re-
lations order is to be interpreted under the
plan so as to constitute a qualified domes-
tic relations order that satisfies subpara-
graphs (C) through (E) (and a copy of
such rules shall be provided to such former
spouse promptly after delivery of the di-
vorce decree). Such rules—
139
‘‘(I) may delay the effect of such
an order until the earlier of the date
the participant is fully vested or has
terminated employment,
‘‘(II) may allow the former
spouse to be paid out immediately,
‘‘(III) shall permit the former
spouse to be paid not later than the
earliest retirement age under the plan
or the participant’s death,
‘‘(IV) may require the submitter
of the divorce decree to present a
marriage certificate or other evidence
of the marriage date to assist in ben-
efit calculations, and
‘‘(V) may conform to the rules
applicable to qualified domestic rela-
tions orders regarding form or type of
benefit.’’
SEC. 407. ENTITLEMENT OF DIVORCED SPOUSES TO RAIL-
ROAD 
RETIREMENT 
ANNUITIES 
INDE-
PENDENT OF ACTUAL ENTITLEMENT OF EM-
PLOYEE.
Section 2 of the Railroad Retirement Act of 1974 (45
U.S.C. 231a) is amended—
140
(1) in subsection (c)(4)(i), by striking ‘‘(A) is
entitled to an annuity under subsection (a)(1) and
(B)’’; and
(2) in subsection (e)(5), by striking ‘‘or di-
vorced wife’’ the second place it appears.
SEC. 408. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this subtitle, other than sec-
tions 403 and 405, shall apply with respect to plan years
beginning on or after January 1, 2000, and the amend-
ments made by section 406 shall apply only with respect
to divorces becoming final in such plan years.
(b) SPECIAL RULE FOR COLLECTIVELY BARGAINED
PLANS.—In the case of a plan maintained pursuant to 1
or more collective bargaining agreements between em-
ployee representatives and 1 or more employers ratified
on or before the date of the enactment of this Act, sub-
section (a) shall be applied to benefits pursuant to, and
individuals covered by, any such agreement by substituting
for ‘‘January 1, 2000’’ the date of the commencement of
the first plan year beginning on or after the earlier of—
(1) the later of—
(A) January 1, 2001, or
(B) the date on which the last of such col-
lective bargaining agreements terminates (de-
141
termined without regard to any extension there-
of after the date of the enactment of this Act),
or
(2) January 1, 2002.
Subtitle B—Protection of Rights of
Former Spouses to Pension Ben-
efits Under Certain Government
and Government-Sponsored Re-
tirement Programs
SEC. 411. EXTENSION OF TIER II RAILROAD RETIREMENT
BENEFITS TO SURVIVING FORMER SPOUSES
PURSUANT TO DIVORCE AGREEMENTS.
(a) IN GENERAL.—Section 5 of the Railroad Retire-
ment Act of 1974 (45 U.S.C. 231d) is amended by adding
at the end the following new subsection:
‘‘(d) Notwithstanding any other provision of law, the
payment of any portion of an annuity computed under sec-
tion 3(b) to a surviving former spouse in accordance with
a court decree of divorce, annulment, or legal separation
or the terms of any court-approved property settlement
incident to any such court decree shall not be terminated
upon the death of the individual who performed the service
with respect to which such annuity is so computed unless
such termination is otherwise required by the terms of
such court decree.’’
142
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 412. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS,
AND FORMER SPOUSES OF FEDERAL EM-
PLOYEES WHO DIE BEFORE ATTAINING AGE
FOR 
DEFERRED 
ANNUITY 
UNDER 
CIVIL
SERVICE RETIREMENT SYSTEM.
(a) BENEFITS FOR WIDOW OR WIDOWER.—Section
8341(f) of title 5, United States Code, is amended—
(1) in the matter preceding paragraph (1) by—
(A) by inserting ‘‘a former employee sepa-
rated from the service with title to deferred an-
nuity from the Fund dies before having estab-
lished a valid claim for annuity and is survived
by a spouse, or if’’ before ‘‘a Member’’; and
(B) by inserting ‘‘of such former employee
or Member’’ after ‘‘the surviving spouse’’;
(2) in paragraph (1)—
(A) by inserting ‘‘former employee or’’ be-
fore ‘‘Member commencing’’; and
(B) by inserting ‘‘former employee or’’ be-
fore ‘‘Member dies’’; and
(3) in the undesignated sentence following para-
graph (2)—
143
(A) in the matter preceding subparagraph
(A) by inserting ‘‘former employee or’’ before
‘‘Member’’; and
(B) in subparagraph (B) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(b) BENEFITS
FOR
FORMER
SPOUSE.—Section
8341(h) of title 5, United States Code, is amended—
(1) in paragraph (1) by adding after the first
sentence ‘‘Subject to paragraphs (2) through (5) of
this subsection, a former spouse of a former em-
ployee who dies after having separated from the
service with title to a deferred annuity under section
8338(a) but before having established a valid claim
for annuity is entitled to a survivor annuity under
this subsection, if and to the extent expressly pro-
vided for in an election under section 8339(j)(3) of
this title, or in the terms of any decree of divorce
or annulment or any court order or court-approved
property settlement agreement incident to such de-
cree.’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)(ii) by striking ‘‘or
annuitant,’’ and inserting ‘‘annuitant, or former
employee’’; and
144
(B) in subparagraph (B)(iii) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(c) PROTECTION OF SURVIVOR BENEFIT RIGHTS.—
Section 8339(j)(3) of title 5, United States Code, is
amended by inserting at the end the following: ‘‘The Office
shall provide by regulation for the application of this sub-
section to the widow, widower, or surviving former spouse
of a former employee who dies after having separated from
the service with title to a deferred annuity under section
8338(a) but before having established a valid claim for
annuity.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply only in the case of a former
employee who dies on or after such date.
SEC. 413. PAYMENT OF LUMP-SUM BENEFITS TO FORMER
SPOUSES OF FEDERAL EMPLOYEES.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Chapter
83 of title 5, United States Code, is amended—
(1) in section 8342(c), by striking ‘‘Lump-sum’’
and inserting ‘‘Except as provided in section
8345(j), lump-sum’’;
(2) in section 8345(j) by adding at the end of
paragraph (1) the following: ‘‘Except for purposes of
subparagraph (B), the first sentence of this para-
145
graph shall be deemed to be amended by inserting
after ‘that individual’ the following: ‘, and any lump-
sum benefits authorized by section 8342(d) through
(f) which would otherwise be paid to any person or
persons under section 8342(c),’ ’’; and
(3) by adding at the end the following:
‘‘(4) Any payment under this subsection to a person
bars recovery by any other person.’’
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Chapter 84 of title 5, United States Code, is amended—
(1) in section 8424(d), by striking ‘‘Lump-sum’’
and inserting ‘‘Except as provided in section
8467(a), lump-sum’’; and
(2) in section 8467—
(A) in subsection (a), by adding at the end
the following: ‘‘Except for purposes of para-
graph (2), the first sentence of this subsection
shall be deemed to be amended by inserting
after ‘that individual’ the following: ‘, and any
lump-sum 
benefits 
authorized 
by 
section
8424(e) through (g) which would otherwise be
paid to any individual or individuals under sec-
tion 8424(d),’ ’’; and
(B) by adding at the end the following:
146
‘‘(d) Any payment under this section to a person bars
recovery by any other person.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any amount payable
by reason of any death occurring on or after the date of
the enactment of this Act.
Subtitle C—Modifications of Joint
and Survivor Annuity Require-
ments
SEC. 421. MODIFICATIONS OF JOINT AND SURVIVOR ANNU-
ITY REQUIREMENTS.
(a) AMENDMENTS TO ERISA.—
(1) AMOUNT OF ANNUITY.—
(A) IN GENERAL.—Paragraph (1) of sec-
tion 205(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1055(a)) is
amended by inserting ‘‘or, at the election of the
participant, shall be provided in the form of a
qualified joint and 2⁄3 survivor annuity’’ after
‘‘survivor annuity,’’.
(B) DEFINITION.—Subsection (d) of sec-
tion 205 of such Act (29 U.S.C. 1055) is
amended—
147
(i) by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B), re-
spectively,
(ii) by inserting ‘‘(1)’’ after ‘‘(d)’’,
and
(iii) by adding at the end the fol-
lowing new paragraph:
‘‘(2) For purposes of this section, the term ‘‘qualified
joint and 2⁄3 survivor annuity’’ means a joint and survivor
annuity under which the survivor annuity for the life of
the surviving spouse is equal to at least 2⁄3 of the amount
of the annuity which is payable during the joint lives of
the participant and spouse.’’
(2) ILLUSTRATION REQUIREMENT.—Clause (i)
of section 205(c)(3)(A) of such Act (29 U.S.C.
1055(c)(3)(A)) is amended to read as follows:
‘‘(i) the terms and conditions of each qualified
joint and survivor annuity and qualified joint and 2⁄3
survivor annuity offered, accompanied by an illustra-
tion of the benefits under each such annuity for the
particular participant and spouse and an acknowl-
edgement form to be signed by the participant and
the spouse that they have read and considered the
illustration before any form of retirement benefit is
chosen,’’.
148
(b) AMENDMENTS TO INTERNAL REVENUE CODE.—
(1) AMOUNT OF ANNUITY.—
(A) IN
GENERAL.—Clause (i) of section
401(a)(11)(A) of the Internal Revenue Code of
1986 (relating to requirement of joint and sur-
vivor annuity and preretirement survivor annu-
ity) is amended by inserting ‘‘or, at the election
of the participant, shall be provided in the form
of a qualified joint and 2⁄3 survivor annuity’’
after ‘‘survivor annuity,’’.
(B) DEFINITION.—Section 417 of such
Code (relating to definitions and special rules
for purposes of minimum survivor annuity re-
quirements), as amended by section 422, is
amended by redesignating subsection (f) as sub-
section (g) and by inserting after subsection (e)
the following new subsection:
‘‘(f) DEFINITION OF QUALIFIED JOINT AND 2⁄3 SUR-
VIVOR ANNUITY.—For purposes of this section and section
401(a)(11), the term ‘qualified joint and 2⁄3 survivor annu-
ity’ means a joint and survivor annuity under which the
survivor annuity for the life of the surviving spouse is
equal to at least 2⁄3 of the amount of the annuity which
is payable during the joint lives of the participant and
spouse.’’
149
(2) ILLUSTRATION REQUIREMENT.—Clause (i)
of section 417(a)(3)(A) of such Code (relating to ex-
planation of joint and survivor annuity) is amended
to read as follows:
‘‘(i) the terms and conditions of each
qualified joint and survivor annuity and
qualified joint and 2⁄3 survivor annuity of-
fered, accompanied by an illustration of
the benefits under each such annuity for
the particular participant and spouse and
an acknowledgement form to be signed by
the participant and the spouse that they
have read and considered the illustration
before any form of retirement benefit is
chosen,’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning on or after
January 1, 2000.
SEC. 422. SPOUSAL CONSENT REQUIRED FOR DISTRIBU-
TIONS 
FROM 
DEFINED 
CONTRIBUTION
PLANS.
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF
1986.—
(1) IN GENERAL.—Section 401(a)(11) of the
Internal Revenue Code of 1986 (relating to require-
150
ment of joint and survivor annuity and preretire-
ment survivor annuity) is amended by striking sub-
paragraphs (B), (C), and (D), by redesignating sub-
paragraphs (E) and (F) as subparagraphs (C) and
(D), respectively, and by inserting after subpara-
graph (A) the following new subparagraph:
‘‘(B) PLANS
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply to any de-
fined benefit plan and to any defined contribu-
tion plan.’’
(2) EXCEPTION
FOR
HARDSHIP
DISTRIBU-
TIONS.—Section 417(f) of such Code is amended by
adding at the end the following new paragraph:
‘‘(8) HARDSHIP DISTRIBUTIONS.—The require-
ments of section 401(a)(11) and this section shall
not apply to a hardship distribution under section
401(k)(2)(B)(i)(IV).’’
(3) SPECIAL
RULE
FOR
CASH-OUTS.—Section
417(e) of such Code is amended by adding at the
end the following new paragraph:
‘‘(4) SPECIAL RULE FOR DEFINED CONTRIBU-
TION PLANS.—
‘‘(A) IN GENERAL.—In the case of a de-
fined contribution plan, notwithstanding para-
graph (2), if the present value of the qualified
151
joint and survivor annuity does not exceed
$10,000, the plan may immediately distribute
50 percent of the present value of such annuity
to each spouse.
‘‘(B) EXCEPTION.—The plan may dis-
tribute a different percentage of the present
value of an annuity to each spouse if a court
order or contractual agreement provides for
such different percentage.’’
(b) AMENDMENTS TO ERISA.—
(1) IN GENERAL.—Section 205(b) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1055(b)) is amended to read as follows:
‘‘(b)(1) This section shall apply to any defined benefit
plan and to any individual account plan.
‘‘(2) This section shall not apply to a plan which the
Secretary of the Treasury or his delegate has determined
is a plan described in section 404(c) of the Internal Rev-
enue Code of 1986 (or a continuation thereof) in which
participation is substantially limited to individuals who,
before January 1, 1976, ceased employment covered by
the plan.’’
(2) HARDSHIP DISTRIBUTION.—Section 205 of
such Act (29 U.S.C. 1055) is amended by adding at
the end the following new subsection:
152
‘‘(m) This section shall not apply to a hardship dis-
tribution under section 401(k)(2)(B)(i)(IV) of the Internal
Revenue Code of 1986.’’
(3) SPECIAL
RULE
FOR
CASH-OUTS.—Section
205(g) of such Act (29 U.S.C. 1055(g)) is amended
by adding at the end the following new paragraph:
‘‘(4) SPECIAL RULE FOR DEFINED CONTRIBU-
TION PLANS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual account plan, notwithstanding paragraph
(2), if the present value of the qualified joint
and survivor annuity or the qualified preretire-
ment survivor annuity exceeds $10,000, the
plan may immediately distribute 50 percent of
the present value of such annuity to each
spouse.
‘‘(B) EXCEPTION.—The plan may dis-
tribute a different percentage of the present
value of an annuity to each spouse if a court
order or contractual agreement provides for
such different percentage.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after De-
cember 31, 2000.
153
TITLE V—DATE FOR ADOPTION
OF PLAN AMENDMENTS
SEC. 501. DATE FOR ADOPTION OF PLAN AMENDMENTS.
(a) IN GENERAL.—Except as otherwise provided in
this Act, if any amendment made by this Act requires an
amendment to any plan, such plan amendment shall not
be required to be made before the last day of the first
plan year beginning on or after January 1, 2000, if—
(1) during the period after such amendment
takes effect and before the last day of such first
plan year, the plan is operated in accordance with
the requirements of such amendment, and
(2) such plan amendment applies retroactively
to such period.
A plan shall not be treated as failing to provide definitely
determinable benefits or contributions, or to be operated
in accordance with the provisions of the plan, merely be-
cause it operates in accordance with this subsection.
(b) GOVERNMENTAL PLANS.—In the case of a gov-
ernmental plan (as defined in section 414(d) of the Inter-
nal Revenue Code of 1986), subsection (a) shall be applied
by substituting for ‘‘January 1, 2000’’ the later of—
(1) January 1, 2001, or
(2) the date which is 90 days after the opening
of the first legislative session beginning after Janu-