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), as so added, 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 take effect as if included in the amend-
ments made by section 1433 of the Small Business Job
Protection Act of 1996.
SEC. 153. 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), and (8) as para-
graphs (3) through (5), 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 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 take effect as if included in the amend-
ments made by section 1431 of the Small Business Job
Protection Act of 1996.
Subtitle C—Improving Retirement
Plan Coverage
SEC. 161. CREDIT FOR PENSION PLAN START-UP COSTS OF
SMALL EMPLOYERS.
(a) ALLOWANCE OF CREDIT.—Section 38(b) (defin-
ing current year business credit) is amended by striking
‘‘plus’’ at the end of paragraph (11), by striking the period
at the end of paragraph (12) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
‘‘(13) the small employer pension plan start-up
cost credit.’’.
(b) SMALL EMPLOYER PENSION PLAN START-UP
COST CREDIT.—Subpart D of part IV of subchapter A
of chapter 1 (relating to business related credits) is
amended by adding at the end the following new section:
‘‘SEC. 45D. SMALL EMPLOYER PENSION PLAN START-UP
COST CREDIT.
‘‘(a) AMOUNT OF CREDIT.—For purposes of section
38—
‘‘(1) IN GENERAL.—The small employer pen-
sion plan start-up cost credit for any taxable year is
an amount equal to the qualified start-up costs of an
eligible employer in establishing a qualified pension
plan or qualified employer payroll deduction system.
‘‘(2) AGGREGATE LIMITATION.—The amount of
the credit under paragraph (1) for any taxable year
shall not exceed $500, reduced by the aggregate
amount determined under this section for all preced-
ing taxable years of the taxpayer.
‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this
section, the term ‘eligible employer’ means an employer
which—
‘‘(1) had an average daily number of employees
during the preceding taxable year not in excess of
50, and
‘‘(2) did not make any contributions on behalf
of any employee to a qualified pension plan during
the 2 taxable years immediately preceding the tax-
able year.
‘‘(c) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) QUALIFIED START-UP COSTS.—The term
‘qualified start-up costs’ means any ordinary and
necessary expenses of an eligible employer which—
‘‘(A) are paid or incurred in connection
with the establishment of a qualified pension
plan or a qualified employer payroll deduction
system, and
‘‘(B) are of a nonrecurring nature.
‘‘(2) QUALIFIED
PENSION
PLAN.—The term
‘qualified pension plan’ means—
‘‘(A) a plan described in section 401(a)
which includes a trust exempt from tax under
section 501(a),
‘‘(B) a simplified employee pension (as de-
fined in section 408(k)), or
‘‘(C) a simple retirement account (as de-
fined in section 408(p)).
‘‘(3) QUALIFIED EMPLOYER PAYROLL DEDUC-
TION SYSTEM.—The term ‘qualified employer payroll
deduction system’ means a system described in sec-
tion 103 of the Retirement Security Act of 1997.
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) AGGREGATION RULES.—All persons treat-
ed as a single employer under subsection (a) or (b)
of section 52 or subsection (n) or (o) of section 414
shall be treated as one person.
‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
duction shall be allowable under this chapter for any
qualified start-up costs for which a credit is allow-
able under subsection (a).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 39(d) is amended by adding at the
end the following new paragraph:
‘‘(8) NO CARRYBACK OF PENSION CREDIT.—No
portion of the unused business credit for any taxable
year which is attributable to the small employer pen-
sion plan start-up cost credit determined under sec-
tion 45D may be carried back to a taxable year end-
ing before the date of the enactment of section
45D.’’.
(2) The table of sections for subpart D of part
IV of subchapter A of chapter 1 is amended by add-
ing at the end the following new item:
‘‘Sec. 45D. Small employer pension plan start-up cost credit.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to costs incurred after the date
of the enactment of this Act in taxable years ending after
such date.
SEC. 162. 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) TREATMENT
OF CERTAIN EXCESS BENEFIT
PLANS.—
(1) APPLICATION OF SECTION 457.—Paragraph
(14) of section 457(e) (relating to other definitions
and special rules) is amended to read as follows:
‘‘(14) TREATMENT
OF
EXCESS
BENEFIT
AR-
RANGEMENTS.—
‘‘(A) IN
GENERAL.—Subsections (b)(2)
and (c)(1) shall not apply to any excess benefit
arrangement and benefits provided under such
an arrangement shall not be taken into account
in determining whether any other plan is an eli-
gible deferred compensation plan.
‘‘(B) EXCESS BENEFIT ARRANGEMENT DE-
FINED.—For purposes of this section, the term
‘excess benefit arrangement’ means a plan
which is maintained by an eligible employer
solely for purposes of providing benefits for cer-
tain employees in excess of the limits on con-
tributions and benefits imposed by section 415.
Such term includes a qualified governmental ex-
cess benefit arrangement (as defined in section
415(m)(3)).’’.
(2) CONFORMING AMENDMENT.—Subparagraph
(E) of section 457(f)(2) (relating to tax treatment of
participants where plan or arrangement of employer
is not eligible) is amended to read as follows:
‘‘(E) an excess benefit arrangement (as de-
fined in subsection (e)(14)(B)).’’.
(c) 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.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by section 1444 of the Small Business Job
Protection Act of 1996.
SEC. 163. 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), as amended
by section 162(b)(1), is amended by adding at the end
the following new paragraph:
‘‘(15) 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, 1996.
SEC. 164. SPECIAL RULES FOR SELF-EMPLOYED INDIVID-
UALS.
(a) CONTRIBUTIONS BY SELF-EMPLOYED INDIVID-
UALS TREATED AS MATCHING CONTRIBUTIONS.—Section
414 (relating to definitions and special rules) is amended
by adding at the end the following new subsection:
‘‘(v) CONTRIBUTIONS BY SELF-EMPLOYED INDIVID-
UALS TREATED
AS MATCHING CONTRIBUTIONS.—For
purposes of this title, matching contributions (as defined
in section 401(m)(4)(A)) made on behalf of a self-em-
ployed individual shall not be treated as elective deferrals
(within the meaning of section 402(g)(3)) or as made pur-
suant to an election by the self-employed individual.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to years beginning after December
31, 1996.
SEC. 165. 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. 166. MODIFICATION OF 10 PERCENT TAX FOR NON-
DEDUCTIBLE CONTRIBUTIONS.
(a) IN GENERAL.—Subparagraph (B) of section
4972(c)(6) (relating to exceptions) is amended to read as
follows:
‘‘(B) contributions to 1 or more defined
contribution plans which are not deductible
when contributed solely because of section
404(a)(7), in an amount not in excess of the
greater of—
‘‘(i) the amount of contributions not
in excess of 6 percent of compensation
(within the meaning of section 404(a))
paid or accrued (during the taxable year
for which the contributions were made) to
beneficiaries under the plans, or
‘‘(ii) the amount of contributions de-
scribed 
in 
section 
401(m)(4)(A) 
or
402(g)(3)(A).’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 167. TREATMENT OF CERTAIN DISABILITY BENEFITS
RECEIVED BY FORMER POLICE OFFICERS OR
FIREFIGHTERS.
(a) GENERAL RULE.—For purposes of determining
whether any amount to which this section applies is ex-
cludable from gross income under section 104(a)(1) of the
Internal Revenue Code of 1986, the following conditions
shall be treated as personal injuries or sickness in the
course of employment:
(1) Heart disease.
(2) Hypertension.
(b) AMOUNTS TO WHICH SECTION APPLIES.—This
section shall apply to any amount—
(1) which is payable—
(A) to an individual (or to the survivors of
an individual) who was a full-time employee of
any police department or fire department which
is organized and operated by a State, by any
political subdivision thereof, or by any agency
or instrumentality of a State or political sub-
division thereof, and
(B) under a State law (as in existence on
July 1, 1992) which irrebuttably presumed that
heart disease and hypertension are work-related
illnesses but only for employees separating from
service before such date; and
(2) which is received in calendar year 1989,
1990, or 1991.
For purposes of the preceding sentence, the term ‘‘State’’
includes the District of Columbia.
(c) WAIVER OF STATUTE OF LIMITATIONS.—If, on
the date of the enactment of this Act (or at any time with-
in the 1-year period beginning on such date of enactment)
credit or refund of any overpayment of tax resulting from
the provisions of this section is barred by any law or rule
of law, credit or refund of such overpayment shall, never-
theless, be allowed or made if claim therefore is filed be-
fore the date 1 year after such date of enactment.
Subtitle D—Simplifying Plan
Requirements
SEC. 171. 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, 1996.
SEC. 172. 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, 1996.
SEC. 173. MODIFICATIONS TO NONDISCRIMINATION AND
MINIMUM PARTICIPATION RULES WITH RE-
SPECT TO GOVERNMENTAL PLANS.
(a) GENERAL NONDISCRIMINATION AND PARTICIPA-
TION RULES.—
(1) 
NONDISCRIMINATION
REQUIREMENTS.—
Paragraph (5) of section 401(a) (relating to quali-
fied pension, profit-sharing, and stock bonus plans)
is amended by adding at the end the following new
subparagraph:
‘‘(F) 
GOVERNMENTAL
PLANS.—Para-
graphs (3) and (4) shall not apply to a govern-
mental plan (within the meaning of section
414(d)).’’.
(2) 
ADDITIONAL
PARTICIPATION
REQUIRE-
MENTS.—Subparagraph (H) of section 401(a)(26) is
amended to read as follows:
‘‘(H) EXCEPTION
FOR
GOVERNMENTAL
PLANS.—This paragraph shall not apply to a
governmental plan (within the meaning of sec-
tion 414(d)).’’.
(3) MINIMUM
PARTICIPATION
STANDARDS.—
Paragraph (2) of section 410(c) is amended to read
as follows:
‘‘(2) A plan described in paragraph (1) shall be
treated as meeting the requirements of this section
for purposes of section 401(a), except that in the
case of a plan described in subparagraph (B), (C),
or (D) of paragraph (1), this paragraph shall only
apply if such plan meets the requirements of section
401(a)(3) (as in effect on September 1, 1974).’’.
(b) PARTICIPATION STANDARDS
FOR QUALIFIED
CASH OR DEFERRED ARRANGEMENTS.—Paragraph (3) of
section 401(k) is amended by adding at the end the follow-
ing new subparagraph:
‘‘(E)(i) The requirements of subparagraph
(A)(i) and (C) shall not apply to a govern-
mental plan (within the meaning of section
414(d)).
‘‘(ii) 
The 
requirements 
of 
subsection
(m)(2) (without regard to subsection (a)(4))
shall apply to any matching contribution of a
governmental plan (as so defined).’’.
(c) NONDISCRIMINATION
RULES
FOR
SECTION
403(b) PLANS.—Paragraph (12) of section 403(b) is
amended by adding at the end the following new subpara-
graph:
‘‘(C) GOVERNMENTAL
PLANS.—For pur-
poses of paragraph (1)(D), the requirements of
subparagraph (A)(i) shall not apply to a gov-
ernmental plan (within the meaning of section
414(d)).’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to taxable years beginning on
or after the date of the enactment of this Act.
(2) TREATMENT
FOR
YEARS
BEGINNING
BE-
FORE DATE OF ENACTMENT.—A governmental plan
(within the meaning of section 414(d) of the Inter-
nal Revenue Code of 1986) shall be treated as satis-
fying the requirements of sections 401(a)(3),
401(a)(4), 
401(a)(26), 
401(k), 
401(m), 
403
(b)(1)(D) and (b)(12), and 410 of such Code for all
taxable years beginning before the date of the enact-
ment of this Act.
SEC. 174. ELIMINATION OF REQUIREMENT FOR PLAN DE-
SCRIPTIONS AND THE FILING REQUIREMENT
FOR SUMMARY PLAN DESCRIPTIONS AND DE-
SCRIPTIONS OF MATERIAL MODIFICATIONS
TO A PLAN; TECHNICAL CORRECTIONS.
(a) FILING REQUIREMENTS.—Section 101(b) of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1021(b)) is amended by striking paragraphs (1),
(2), and (3) and by redesignating paragraphs (4) and (5)
as paragraphs (1) and (2), respectively.
(b) PLAN DESCRIPTION.—
(1) IN GENERAL.—Section 102(a) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1022(a)) is amended—
(A) by striking paragraph (2), and
(B) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 102(b) of such Act (29 U.S.C.
1022(b)) is amended by striking ‘‘The plan de-
scription and summary plan description shall
contain’’ and inserting ‘‘The summary plan de-
scription shall contain’’.
(B) The heading for section 102 of such
Act is amended by striking ‘‘PLAN DESCRIPTION
AND’’.
(c) FURNISHING OF REPORTS.—
(1) IN
GENERAL.—Section 104(a)(1) of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1024(a)(1)) is amended to read as fol-
lows:
‘‘SEC. 104. (a)(1) The administrator of any employee
benefit plan subject to this part shall file with the Sec-
retary the annual report for a plan year within 210 days
after the close of such year (or within such time as may
be required by regulations promulgated by the Secretary
in order to reduce duplicative filing). The Secretary shall
make copies of such annual reports available for inspection
in the public document room of the Department of
Labor.’’.
(2) SECRETARY MAY REQUEST DOCUMENTS.—
(A) IN GENERAL.—Section 104(a) of such
Act (29 U.S.C. 1024(a)) is amended by adding
at the end the following new paragraph:
‘‘(6) The administrator of any employee benefit plan
subject to this part shall furnish to the Secretary, upon
request, any documents relating to the employee benefit
plan, including but not limited to, the latest summary plan
description (including any summaries of plan changes not
contained in the summary plan description), and the bar-
gaining agreement, trust agreement, contract, or other in-
strument under which the plan is established or oper-
ated.’’.
(B) PENALTY.—Section 502(c) of such Act
(29 U.S.C. 1132(c)) is amended by redesignat-
ing paragraph (6) as paragraph (7) and by in-
serting after paragraph (5) the following new
paragraph:
‘‘(6) If, within 30 days of a request by the Secretary
to a plan administrator for documents under section
104(a)(6), the plan administrator fails to furnish the ma-
terial requested to the Secretary, the Secretary may assess
a civil penalty against the plan administrator of up to
$100 a day from the date of such failure (but in no event
in excess of $1,000 per request). No penalty shall be im-
posed under this paragraph for any failure resulting from
matters reasonably beyond the control of the plan admin-
istrator.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 104(b)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C.
1024(b)(1)) 
is 
amended 
by 
striking 
‘‘section
102(a)(1)’’ each place it appears and inserting ‘‘sec-
tion 102(a)’’.
(2) Section 104(b)(2) of such Act (29 U.S.C.
1024(b)(2)) is amended by striking ‘‘the plan de-
scription and’’ and inserting ‘‘the latest updated
summary plan description and’’.
(3) Section 104(b)(4) of such Act (29 U.S.C.
1024(b)(4)) is amended by striking ‘‘plan descrip-
tion’’.
(4) Section 106(a) of such Act (29 U.S.C.
1026(a)) is amended by striking ‘‘descriptions,’’.
(5) Section 107 of such Act (29 U.S.C. 1027)
is amended by striking ‘‘description or’’.
(6) Paragraph (2)(B) of section 108 of such
Act (29 U.S.C. 1028) is amended to read as follows:
‘‘(B) after publishing or filing the annual reports,’’.
(7) Section 502(a)(6) of such Act (29 U.S.C.
1132(a)(6)) is amended by striking ‘‘or (5)’’ and in-
serting ‘‘(5), or (6)’’.
(e) TECHNICAL CORRECTION.—Section 1144(c) of
the Social Security Act (42 U.S.C. 1320b–14(c)) is
amended by redesignating paragraph (9) as paragraph
(8).
SEC. 175. REPEAL OF 150 PERCENT OF CURRENT LIABILITY
FUNDING LIMIT.
(a) IN GENERAL.—Section 412(c)(7) of the Internal
Revenue Code of 1986 (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) of the In-
ternal Revenue Code of 1986, as amended by sub-
section (a) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(G) SPECIAL AMORTIZATION RULE.—Con-
tributions that would be required to be made
under the plan but for the provisions of sub-
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-
110
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
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),