ruling, without adversely affecting the tax status of 
the group trust, such plan, account, or organization, 
or any other plan or trust that invests in the group 
trust. 
(2) EFFECTIVE
DATE.—This subsection shall 
apply to investments made after the date of the en-
actment of this Act. 
SEC. 406. PROTECTING OLDER, LONGER SERVICE PARTICI-
PANTS. 
(a) IN GENERAL.—Paragraph (4) of section 401(a) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(4) NONDISCRIMINATION.— 
‘‘(A) IN GENERAL.—A trust shall not con-
stitute a qualified trust under this section un-
less the contributions or benefits provided under 
the plan do not discriminate in favor of highly 
compensated employees (within the meaning of 
section 414(q)). For purposes of this para-
graph, there shall be excluded from consider-
ation employees described in section 410(b)(3) 
(A) and (C). 
‘‘(B) PROTECTION
OF
OLDER, LONGER 
SERVICE PARTICIPANTS.— 
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‘‘(i)(I) A defined benefit plan de-
scribed in subclause (II) shall not fail to 
satisfy this paragraph with respect to plan 
benefits, rights, or features by reason of— 
‘‘(aa) the composition of the 
closed class of participants described 
in subclause (II), or 
‘‘(bb) the benefits, rights, or fea-
tures provided to such closed class. 
‘‘(II) A plan is described in this sub-
clause if— 
‘‘(aa) the plan provides benefits, 
rights, or features to a closed class of 
participants, 
‘‘(bb) such closed class and such 
benefits, rights, and features satisfy 
the requirements of subparagraph (A) 
(without regard to this clause) as of 
the date that the class was closed, and 
‘‘(cc) after the date as of which 
the class was closed, any plan amend-
ments that modify the closed class or 
the benefits, rights, and features pro-
vided to such closed class satisfy sub-
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paragraph (A) (without regard to this 
clause). 
If a plan amendment causes a plan to 
cease to be described in this subclause (II) 
by reason of subclause (II)(cc), the plan is 
nevertheless described in this subclause 
(II) if such plan satisfies this subclause 
(II) (without regard to subclause (II)(cc)) 
as of the effective date of such amend-
ment. In such cases, subclauses (II)(bb) 
and (cc) shall subsequently be applied by 
reference to the effective date of the plan 
amendment, rather than by reference to 
the original date that the class was closed. 
‘‘(ii)(I) A defined contribution plan 
described in subclause (II) shall permitted 
to be tested on a benefits basis. 
‘‘(II) A defined contribution plan is 
described in this subclause if— 
‘‘(aa) the plan provides make- 
whole contributions to a closed class 
of participants whose defined benefit 
plan accruals have been reduced or 
eliminated, 
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‘‘(bb) such closed class of partici-
pants satisfies section 410(b)(2)(A)(i) 
as of the date that the class of partici-
pants was closed, and 
‘‘(cc) after the date as of which 
the class was closed, any plan amend-
ments that modify the closed class or 
the allocations, benefits, rights, and 
features provided to such closed class 
satisfy subparagraph (A) (without re-
gard to this clause). 
If a plan amendment causes a plan to 
cease to be described in this subclause (II) 
by reason of subclause (II)(cc), the plan is 
nevertheless described in this subclause 
(II) if such plan satisfies this subclause 
(II) (without regard to subclause (II)(cc)) 
as of the effective date of such amend-
ment. In such cases, subclause (II)(bb) 
and (cc) shall subsequently be applied by 
reference to the effective date of the plan 
amendment, rather than by reference to 
the original date that the class was closed. 
‘‘(III) In addition to other testing 
methodologies otherwise applicable, for 
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purposes of determining compliance with 
this paragraph and with section 410(b) of 
the portion of one or more defined con-
tribution plans described in subclause (II) 
that provide make-whole contributions, 
such portion of such plans may be aggre-
gated and tested on a benefits basis with 
the portion of one or more defined con-
tribution plans that— 
‘‘(aa) provides matching con-
tributions (as defined in subsection 
(m)(4)(A)), or 
‘‘(bb) consists of an employee 
stock ownership plan within the mean-
ing of section 4975(e)(7) or a tax 
credit employee stock ownership plan 
within the meaning of section 409(a). 
For such purposes, matching contributions 
shall be treated in the same manner as em-
ployer contributions that are made without 
regard to whether an employee makes an 
elective contribution or employee contribu-
tion, including for purposes of applying the 
rules of subsection (l). 
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‘‘(C) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) MAKE-WHOLE CONTRIBUTIONS.— 
The 
term 
‘make-whole 
contributions’ 
means allocations for each employee in the 
class that are reasonably calculated, in a 
consistent manner, to replace some or all 
of the retirement benefits that the em-
ployee would have received under the de-
fined benefit plan and any other plan or 
arrangement if the employee had continued 
to benefit at the same level under such de-
fined benefit plan and such other plan or 
arrangement. 
‘‘(ii) REFERENCES TO CLOSED CLASS 
OF PARTICIPANTS.—References to a closed 
class of participants and similar references 
to a closed class shall include arrange-
ments under which one or more classes of 
participants are closed. 
‘‘(D) PROTECTING GRANDFATHERED PAR-
TICIPANTS IN DEFINED BENEFIT PLANS.— 
‘‘(i) One or more defined benefit plans 
described in clause (ii) shall be permitted 
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be applied by reference to the effective 
date of the plan amendment, rather than 
by reference to the original date that the 
class was closed. 
‘‘(iii) In addition to other testing 
methodologies otherwise applicable, for 
purposes of determining compliance with 
this paragraph and with section 410(b) of 
one or more defined benefit plans described 
in clause (ii), such plans may be aggre-
gated and tested on a benefits basis with 
the portion of one or more defined con-
tribution plans that— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), or 
‘‘(II) consists of an employee 
stock ownership plan within the mean-
ing of section 4975(e)(7) or a tax 
credit employee stock ownership plan 
within the meaning of section 409(a). 
For such purposes, matching contributions 
shall be treated in the same manner as em-
ployer contributions that are made without 
regard to whether an employee makes an 
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elective contribution or employee contribu-
tion, including for purposes of applying the 
rules of subsection (l). 
‘‘(E) RULES.—The Secretary may pre-
scribe rules designed to prevent abuse of the 
plan designs otherwise permitted by reason of 
subparagraphs (B) and (D). Such rules shall be 
directed towards abuses under which the de-
fined benefit plan was established within a spec-
ified period prior to the date that— 
‘‘(i) the class of participants described 
in 
subparagraphs 
(B)(i)(II)(aa), 
(B)(ii)(II)(aa), and (D)(ii)(I) is closed, or 
‘‘(ii) the defined benefit plan accruals 
have been reduced or eliminated, in the 
case of the make-whole contributions de-
scribed in subparagraph (C). 
‘‘(F) TRANSITION
RULES.—Within one 
year after the date of enactment of the Retire-
ment Plan Simplification and Enhancement Act 
of 2013, the Secretary shall prescribe rules that 
facilitate the use of the provisions of subpara-
graph (B) and (D) without regard to— 
‘‘(i) whether the closing of the class of 
participants referred to in such subpara-
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graphs occurred before or after such date 
of enactment, or 
‘‘(ii) plan amendments that were 
adopted or effective before such date of en-
actment and that would not have been nec-
essary if subparagraphs (B) and (D) had 
been in effect.’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Paragraph 
(26) of section 401(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(I) PROTECTED PARTICIPANTS.—A plan 
described in this subparagraph shall be deemed 
to satisfy the requirements of subparagraph 
(A). A plan is described in this paragraph if— 
‘‘(i) the plan is amended to— 
‘‘(I) cease all benefit accruals, or 
‘‘(II) provide future benefit ac-
cruals only to a closed class of partici-
pants, and 
‘‘(ii) the plan satisfies subparagraph 
(A) (without regard to this subparagraph) 
as of the effective date of the amendment. 
The Secretary may prescribe such rules as are 
necessary or appropriate to fulfill the purposes 
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of this subparagraph, including prevention of 
abuse of this subparagraph in the case of plans 
established within a specific period prior to the 
effective date of the amendment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, without regard to whether any plan modifica-
tions referenced in such amendments are adopted or effec-
tive before, on, or after such date of enactment. 
SEC. 407. REVIEW AND REPORT TO THE CONGRESS RELAT-
ING TO REPORTING AND DISCLOSURE RE-
QUIREMENTS. 
(a) STUDY.—As soon as practicable after the date of 
the enactment of this Act, the Secretary of Labor, the Sec-
retary of the Treasury, and the Pension Benefit Guaranty 
Corporation shall review the reporting and disclosure re-
quirements of— 
(1) title I of the Employee Retirement Income 
Security Act of 1974 applicable to pension plans (as 
defined in section 3(2) of such Act), and 
(2) the Internal Revenue Code of 1986 applica-
ble to qualified retirement plans (as defined in sec-
tion 4974(c) of such Code without regard to para-
graphs (4) and (5) thereof). 
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(b) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of Labor, 
the Secretary of the Treasury, and the Pension Benefit 
Guaranty Corporation, jointly, shall make such rec-
ommendations as may be appropriate to the appropriate 
committees of the Congress to consolidate, simplify, stand-
ardize, and improve the applicable reporting and disclo-
sure requirements so as to simplify reporting for plans ref-
erenced to in subsection (a) and ensure that needed under-
standable information is provided to participants and 
beneficiaries of such plans. 
SEC. 408. CONSOLIDATION OF DEFINED CONTRIBUTION 
PLAN NOTICES. 
(a) IN GENERAL.— 
(1) Not later than 18 months after the date of 
the enactment of this Act, the Secretary of Labor 
and the Secretary of the Treasury shall adopt final 
regulations providing that a plan may, but is not re-
quired to, consolidate two or more of the notices re-
quired under sections 404(c)(5)(B) and 514(e)(3) of 
the Employee Retirement Income Security Act of 
1974 
(29 
U.S.C. 
1144(e)(3)), 
sections 
401(k)(12)(D), 401(k)(13)(E), and 414(w)(4) of the 
Internal Revenue Code of 1986, and section 
2550.404a–5 of title 29, Code of Federal Regula-
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tions (29 C.F.R. 2550.404a–5) into a single notice 
or, to the extent provided by such regulations, con-
solidate such notices with the summary plan descrip-
tion or summary of material modifications described 
in section 104(b) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1024(b)), so 
long as the combined notice, summary plan descrip-
tion or summary of material modifications includes 
the required content, clearly identifies the issues ad-
dressed therein, and is provided at the time and with 
the frequency required for each such notice. 
(2) The Secretary of Labor and the Secretary 
of the Treasury may include in such regulations 
rules to ensure that, to the extent such notices are 
consolidated with the summary plan description or 
summary of material modifications, the presentation, 
placement, or prominence of the information in such 
notices shall not have the effect of failing to inform 
participants and beneficiaries regarding the informa-
tion in such notices. 
(b) PROVISION OF ANNUAL NOTICES WITHOUT RE-
GARD TO PLAN YEAR.— 
(1) Clause (i) of section 404(c)(5)(B) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104(c)(5)(B)) is amended— 
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(A) in subclause (I) by striking ‘‘within a 
reasonable period of time before each plan 
year,’’ and inserting ‘‘within a reasonable pe-
riod before the arrangement described in sub-
paragraph (A) applies to such participant or 
beneficiary, and thereafter at least once within 
any 12-month period (without regard to the 
plan year) during which such arrangement ap-
plies,’’, and 
(B) in subclause (II) by striking ‘‘and be-
fore the beginning of the plan year’’. 
(2) Subparagraph (A) of section 514(e)(3) of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1144(e)(3)(A)) is amended by 
striking ‘‘, within a reasonable period before such 
plan year, provide to each participant to whom the 
arrangement applies for such plan year’’ and insert-
ing ‘‘, within a reasonable period before the arrange-
ment applies to a participant or beneficiary, and 
thereafter at least once within any 12-month period 
(without regard to the plan year) during which such 
arrangement applies, provide’’. 
(3) Clause (i) of section 401(k)(13)(E) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘, within a reasonable period before each plan 
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year, each employee eligible to participate in the ar-
rangement for such year receives’’ and inserting 
‘‘each employee eligible to participate in the arrange-
ment receives, within a reasonable period before the 
employee becomes eligible, and thereafter within a 
reasonable period before each plan year during 
which such arrangement applies,’’. 
(4) Subparagraph (D) of section 401(k)(12) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘, within a reasonable period before any 
year, given written notice’’ and inserting ‘‘given 
written notice, within a reasonable period before the 
employee becomes eligible, and thereafter within a 
reasonable period before each plan year during 
which such arrangement applies,’’. 
(5) Subparagraph (A) of section 414(w)(4) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘, within a reasonable period before each 
plan year, give to each employee to whom an ar-
rangement described in paragraph (3) applies for 
such plan year’’ and inserting ‘‘, within a reasonable 
period before an arrangement described in para-
graph (3) applies to an employee, and thereafter at 
least once within any 12-month period (without re-
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gard to the plan year) during which such arrange-
ment applies, give to each such employee’’. 
SEC. 409. PERFORMANCE BENCHMARKS FOR ASSET ALLO-
CATION FUNDS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of Labor shall modify the regula-
tions under section 404 of the Employee Retirement In-
come Security Act of 1974 to provide that, in the case 
of a designated investment alternative that contains a mix 
of asset classes, a plan administrator may, but is not re-
quired to, use a benchmark that is a blend of different 
broad-based securities market indices if— 
(1) the blend is reasonably representative of the 
asset class holdings of the designated investment al-
ternative; 
(2) for purposes of determining the blend’s re-
turns for 1-, 5-, and 10-calendar year periods (or for 
the life of the alternative, if shorter), the blend is 
modified at least once per year to reflect changes in 
the asset class holdings of the designated investment 
alternative; and 
(3) each securities market index that is used for 
an associated asset class would separately satisfy the 
requirements of such regulations for such asset 
class. 
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SEC. 410. PERMIT NONSPOUSAL BENEFICIARIES TO ROLL 
ASSETS TO PLANS. 
(a) IN GENERAL.—Section 402(c) is amended by 
adding at the end the following new paragraph: 
‘‘(12) DISTRIBUTIONS TO QUALIFIED PLAN OF 
NONSPOUSE BENEFICIARY.—If, with respect to any 
portion of a distribution from an eligible retirement 
plan described in paragraph (8)(B)(iii) of a deceased 
employee, a direct trustee-to-trustee transfer is made 
to a plan or annuity described in clause (iii), (iv), 
(v), or (vi) of paragraph (8)(B) of an individual who 
is a designated beneficiary (as defined by section 
401(a)(9)(E)) of the employee and who is not the 
surviving spouse of the employee— 
‘‘(A) the transfer shall be treated as an eli-
gible rollover distribution, and 
‘‘(B) section 401(a)(9)(B) (other than 
clause (iv) thereof) shall apply to such plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 411. ELIMINATE THE ‘‘FIRST DAY OF THE MONTH’’ RE-
QUIREMENT. 
(a) IN GENERAL.—Paragraph (4) of section 457(b) 
is amended to read as follows: 
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‘‘(4) which provides that compensation will be 
deferred only if an agreement providing for such de-
ferral has been entered into before the compensation 
is currently available to the individual,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to years beginning after the date 
of the enactment of this Act. 
TITLE V—PROVISIONS 
ENSURING EQUITY IN DIVORCE 
SEC. 501. SPECIAL RULES RELATING TO TREATMENT OF 
QUALIFIED DOMESTIC RELATIONS ORDERS. 
(a) PRESERVATION OF ASSETS.— 
(1) AMENDMENT
OF
1986
CODE.—Section 
414(p) is amended by redesignating paragraph (13) 
as paragraph (14) and by inserting after paragraph 
(12) the following new paragraph: 
‘‘(13) PRESERVATION OF ASSETS.— 
‘‘(A) IN GENERAL.—If a spouse or former 
spouse of a participant notifies a plan in writ-
ing that— 
‘‘(i) an action is pending pursuant to 
a State domestic relations law (including a 
community property law), and 
‘‘(ii) all or a portion of the benefits 
payable with respect to the participant 
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under the plan are a subject of such ac-
tion, 
and includes with the notice evidence of the 
pendency of the action, the plan administrator 
shall, during the segregation period, separately 
account for 50 percent of such benefits. Any 
amounts so separately accounted for may not 
be distributed by the plan during the segrega-
tion period. 
‘‘(B) SEGREGATION
PERIOD.—For pur-
poses of subparagraph (A), the term ‘segrega-
tion period’ means the period— 
‘‘(i) beginning on the date of the re-
ceipt of the notice, and 
‘‘(ii) ending as of the close of the 90- 
day period beginning on such date (or, if 
earlier, the date of receipt of a domestic 
relations order with respect to the partici-
pant and the spouse or former spouse or 
the date the action is no longer pending). 
The segregation period shall be extended for 1 
or more additional periods described in the pre-
ceding sentence upon notice by the spouse or 
former spouse that the action described in sub-
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paragraph (A) is still pending as of the close of 
any prior segregation period.’’. 
(2) AMENDMENT OF 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 redesig-
nating subparagraph (N) as subparagraph (O) and 
by inserting after subparagraph (M) the following 
new subparagraph: 
‘‘(N) PRESERVATION OF ASSETS.— 
‘‘(i) IN
GENERAL.—If a spouse or 
former spouse of a participant notifies a 
plan in writing that— 
‘‘(I) an action is pending pursu-
ant to a State domestic relations law 
(including a community property law), 
and 
‘‘(II) all or a portion of the bene-
fits payable with respect to the partic-
ipant under the plan are a subject of 
such action, 
and includes with the notice evidence of 
the pendency of the action, the plan ad-
ministrator shall, during the segregation 
period, separately account for 50 percent 
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of such benefits. Any amounts so sepa-
rately accounted for may not be distributed 
by the plan during the segregation period. 
‘‘(ii) 
SEGREGATION
PERIOD.—For 
purposes of clause (i), the term ‘segrega-
tion period’ means the period— 
‘‘(I) beginning on the date of the 
receipt of the notice, and 
‘‘(II) ending as of the close of the 
90-day period beginning on such date 
(or, if earlier, the date of receipt of a 
domestic relations order with respect 
to the participant and the spouse or 
former spouse or the date the action 
is no longer pending). 
The segregation period shall be extended 
for 1 or more additional periods described 
in the preceding sentence upon notice by 
the spouse or former spouse that the ac-
tion described in clause (i) is still pending 
as of the close of any prior segregation pe-
riod.’’. 
(b) PENALTY FOR FAILURE TO PROVIDE INFORMA-
TION REGARDING ALTERNATE PAYEES.—Section 502(c) 
of the Employee Retirement Income Security Act of 1974 
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(29 U.S.C. 1132(c)) is amended by redesignating para-
graphs (8) and (9) as paragraphs (9) and (10), respec-
tively, and by inserting after paragraph (7) the following 
new paragraph: 
‘‘(8) FAILURE TO PROVIDE INFORMATION RE-
GARDING ALTERNATE PAYEES.—The Secretary may 
assess a civil penalty against any plan administrator 
of up to $100 a day from the date of the plan ad-
ministrator’s failure or refusal to provide the infor-
mation the plan administrator is required to provide 
under regulations under this Act to prospective al-
ternative payees under a domestic relations order 
under section 206(d)(3) or to the Secretary or any 
representative of a prospective alternative payee in 
connection with such an order.’’. 
(c) ALLOCATION OF PLAN EXPENSES IN COMPLYING 
WITH DOMESTIC RELATIONS ORDERS.— 
(1) AMENDMENT
OF
1986
CODE.—Section 
414(p), as amended by subsection (a), is amended 
by redesignating paragraph (14) as paragraph (15) 
and by inserting after paragraph (13) the following 
new paragraph: 
‘‘(14) ALLOCATION
OF
EXPENSES.—Any ex-
penses incurred by a plan with respect to compliance 
with the requirements of this subsection shall not be 
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allocated to an individual participant but rather 
shall be allocated among all participants on the basis 
of the relative value of each participant’s share of 
the assets of the plan, on the basis of a flat amount 
per participant, or on any other reasonable basis 
provided for under the plan.’’. 
(2) AMENDMENT OF 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)), as amended by sub-
section (a), is amended by redesignating subpara-
graph (O) as subparagraph (P) and by inserting 
after subparagraph (N) the following new subpara-
graph: 
‘‘(O) ALLOCATION
OF
EXPENSES.—Any 
expenses incurred by a plan with respect to 
compliance with the requirements of this para-
graph shall not be allocated to an individual 
participant but rather shall be allocated among 
all participants on the basis of the relative value 
of each participant’s share of the assets of the 
plan, on the basis of a flat amount per partici-
pant, or on any other reasonable basis provided 
for under the plan.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2013. 
SEC. 502. ELIMINATION OF CURRENT CONNECTION RE-
QUIREMENT UNDER RAILROAD RETIREMENT 
ACT FOR CERTAIN SURVIVORS. 
(a) IN GENERAL.—Section 2(d)(1) of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231a(d)(1)), in the 
matter preceding paragraph (i), is amended by inserting 
‘‘, except with respect to survivors described in paragraph 
(i), (ii), or (v),’’ after ‘‘December 31, 1995) and’’. 
(b) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall take effect on the date of enact-
ment of this Act. 
(2) RETROACTIVE
APPLICATION
TO
CERTAIN 
SURVIVORS.—If a survivor of a deceased employee 
would be entitled to an annuity by reason of the 
amendment made by subsection (a) but for the fact 
that the employee died before the date of the enact-
ment of this Act, the survivor shall be entitled to 
such an annuity but only with respect to annuity 
payments for months beginning on or after such 
date. Appropriate adjustments shall be made in an-
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nuity payments of other individuals to reflect any 
annuity payable by reason of this paragraph. 
SEC. 503. PERMITTING DIVORCED SPOUSES AND WIDOWS 
AND WIDOWERS TO REMARRY AFTER TURN-
ING 60 WITHOUT A PENALTY UNDER RAIL-
ROAD RETIREMENT ACT. 
(a) IN GENERAL.— 
(1) DIVORCED SPOUSE.—Section 2(c)(4) of the 
Railroad Retirement Act of 1974 (45 U.S.C. 
231a(c)(4)) is amended by adding at the end the fol-
lowing new sentence: ‘‘For purposes of paragraph 
(ii)(B), if a divorced wife marries after attaining age 
60, such marriage shall be deemed not to have oc-
curred.’’. 
(2) 
WIDOWS
AND
WIDOWERS.—Section 
2(d)(1)(v) of the Railroad Retirement Act of 1974 
(45 U.S.C. 231a(d)(1)(v)) is amended by adding at 
the end the following new sentence: ‘‘For purposes 
of this paragraph, if a widow marries after attaining 
age 60, such marriage shall be deemed not to have 
occurred.’’. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect on the date of enact-
ment of this Act. 
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(2) RETROACTIVE APPLICATION.—If a divorced 
wife, widow, or widower would be entitled to an an-
nuity by reason of the amendments made by this 
section but for the fact the individual was married 
before the date of the enactment of this Act, the in-
dividual shall be entitled to such an annuity but only 
with respect to annuity payments for months begin-
ning on or after such date. Appropriate adjustments 
shall be made in annuity payments of other individ-
uals to reflect any annuity payable by reason of this 
paragraph. 
SEC. 504. REPEAL OF JURISDICTIONAL REQUIREMENT FOR 
COURT TO TREAT MILITARY RETIREMENT 
PAY AS PROPERTY OF THE MILITARY MEM-
BER AND SPOUSE. 
(a) IN GENERAL.—Section 1408(c) of title 10, 
United States Code, is amended by striking paragraph (4). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to final decrees issued on or after 
the date of the enactment of this Act. 
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SEC. 505. MODIFICATION OF REDUCTIONS IN DISPOSABLE 
RETIRED PAY FOR PAYMENTS IN COMPLI-
ANCE WITH COURT ORDERS. 
(a) IN GENERAL.—Section 1408(d) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
‘‘(8) Notwithstanding subsection (a)(4) or 
(e)(1), if the disposable retired pay of a member is 
reduced under subparagraph (B) of subsection 
(a)(4) as a result of a waiver required to receive 
compensation under title 38, or is reduced under 
subparagraph (C) of subsection (a)(4), the Secretary 
concerned shall pay (subject to any other limitation 
under this section) to the spouse or former spouse 
the lesser of— 
‘‘(A) the amount payable under the final 
court order from the disposable retired pay (de-
termined without regard to such reductions), or 
‘‘(B) 100 percent of the disposable retired 
pay (determined after such reductions).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments of disposable retired 
pay attributable to periods beginning on or after the date 
of the enactment of this Act with respect to final court 
orders issued on, before, or after such date. 
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SEC. 506. 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) DEFINITION.—Section 8341(a) of title 5, United 
States Code, is amended— 
(1) in paragraph (1), by striking ‘‘employee or 
Member’’ and inserting ‘‘employee, Member, or an-
nuitant, or of a former employee or Member,’’; and 
(2) in paragraph (2), by striking ‘‘employee or 
Member’’ and inserting ‘‘employee, Member, or an-
nuitant, or of a former employee or Member,’’. 
(b) BENEFITS FOR WIDOW, WIDOWER, OR FORMER 
SPOUSE.— 
(1) IN
GENERAL.—Section 8341 of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘(l) If a former employee heretofore or hereafter sep-
arated from the service with title to deferred annuity from 
the Fund hereafter dies before having established a valid 
claim for annuity and is survived by a widow or widower 
to whom married at the date of separation, the widow or 
widower— 
‘‘(1) is entitled to an annuity equal to 55 per-
cent of the deferred annuity of the former employee 
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commencing on the day after the former employee 
dies and terminating on the last day of the month 
before the widow or widower dies or remarries before 
becoming 55 years of age; or 
‘‘(2) may elect to receive the lump-sum credit 
instead of annuity if the widow or widower is the in-
dividual who would be entitled to the lump-sum 
credit and files application therefor with the Office 
before the award of the annuity. 
Notwithstanding the preceding sentence, an annuity 
payable under this subsection to the widow or wid-
ower of a former employee may not exceed the dif-
ference between— 
‘‘(A) the annuity which would otherwise be 
payable to such widow or widower under this 
subsection, and 
‘‘(B) the amount of the survivor annuity 
payable to any former spouse of such former 
employee under subsection (h) of this section.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 8339(j) of title 5, United States 
Code, is amended— 
(A) in paragraph (3)(A)(ii), by striking 
‘‘and (h)’’ and inserting ‘‘(h), and (l)’’; and 
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(B) in paragraph (4), by striking ‘‘and 
(h)’’ and inserting ‘‘(h), and (l)’’. 
(c) 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 
(B) in subparagraph (B)— 
(i) in clause (ii), by striking ‘‘or’’ at 
the end; 
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(ii) in clause (iii), by striking the pe-
riod and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iv) under subparagraph (A) of sub-
section (l) of this section in the case of a 
widow or widower, if the deceased was a 
former employee described in the first sen-
tence of such subsection.’’. 
(d) 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.’’. 
(e) 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. 
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SEC. 507. COURT ORDERS RELATING TO FEDERAL RETIRE-
MENT BENEFITS FOR FORMER SPOUSES OF 
FEDERAL EMPLOYEES. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 
8345(j) of title 5, United States Code, is amended— 
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3)(A) A court decree, court order, property 
settlement, or similar process referred to under 
paragraph (1)(A) shall be treated as meeting the re-
quirements of that paragraph if it requires that pay-
ment of benefits be made to the former spouse of 
the employee, Member, or annuitant— 
‘‘(i) in the case of any payment before the 
employee, Member, or annuitant has separated 
from service, on or after the date on which the 
employee, Member, or annuitant attains (or 
would have attained) the earliest retirement 
age, 
‘‘(ii) as if the employee, Member, or annu-
itant had retired on the date on which such 
payment is to begin under such order (but tak-
ing into account only the present value of the 
benefits actually accrued and not taking into 
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account the present value of any employer sub-
sidy for early retirement), and 
‘‘(iii) in any form in which such benefits 
may be paid under this chapter to the em-
ployee, Member, or annuitant (other than in the 
form of a joint and survivor annuity with re-
spect to the former spouse and his or her subse-
quent spouse). 
For purposes of clause (ii), the interest rate assump-
tion used in determining the present value shall be 
the interest rate specified under this subchapter or, 
if no rate is specified, 5 percent. 
‘‘(B) In this paragraph, the term ‘earliest re-
tirement age’ means the earlier of— 
‘‘(i) the date on which the employee, Mem-
ber, or annuitant is entitled to a distribution 
under this subchapter, or 
‘‘(ii) the later of— 
‘‘(I) the date the employee, Member, 
or annuitant attains age 50, or 
‘‘(II) the earliest date on which the 
employee, Member, or annuitant could 
begin receiving benefits under this chapter 
if the employee, Member, or annuitant sep-
arated from service.’’. 
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(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 
Section 8467 of title 5, United States Code, is amended— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c)(1) A court decree, court order, property settle-
ment, or similar process referred to under subsection 
(a)(1) shall be treated as meeting the requirements of that 
subsection if it requires that payment of benefits be made 
to the former spouse of the employee, Member, or annu-
itant— 
‘‘(A) in the case of any payment before the em-
ployee, Member, or annuitant has separated from 
service, on or after the date on which the employee, 
Member, or annuitant attains (or would have at-
tained) the earliest retirement age, 
‘‘(B) as if the employee, Member, or annuitant 
had retired on the date on which such payment is 
to begin under such order (but taking into account 
only the present value of the benefits actually ac-
crued and not taking into account the present value 
of any employer subsidy for early retirement), and 
‘‘(C) in any form in which such benefits may be 
paid under this chapter to the employee, Member, or 
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annuitant (other than in the form of a joint and sur-
vivor annuity with respect to the alternate payee and 
his or her subsequent spouse). 
For purposes of subparagraph (B), the interest rate as-
sumption used in determining the present value shall be 
the interest rate specified under this chapter or, if no rate 
is specified, 5 percent. 
‘‘(2) In this subsection, the term ‘earliest retirement 
age’ means the earlier of— 
‘‘(A) the date on which the employee, Member, 
or annuitant is entitled to a distribution under this 
chapter, or 
‘‘(B) the later of— 
‘‘(i) the date the employee, Member, or an-
nuitant attains age 50, or 
‘‘(ii) the earliest date on which the em-
ployee, Member, or annuitant could begin re-
ceiving benefits under this chapter if the em-
ployee, Member, or annuitant separated from 
service.’’. 
(c) EFFECTIVE
DATE
AND
APPLICATION.—The 
amendments made by this section shall take effect on the 
date of the enactment of this Act and apply to any court 
decree, court order, property settlement, or similar process 
issued or approved before, on, or after that date. 
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TITLE VI—OFFICE OF PARTICI-
PANT AND PLAN SPONSOR 
ADVOCATE 
SEC. 601. OFFICE OF PARTICIPANT AND PLAN SPONSOR AD-
VOCATE. 
(a) IN GENERAL.—Section 7803 is amended by add-
ing at the end the following: 
‘‘(e) PARTICIPANT
AND
PLAN
SPONSOR
ADVO-
CATE.— 
‘‘(1) IN GENERAL.—There is established in the 
Internal Revenue Service an office to be known as 
the ‘Office of the Participant and Plan Sponsor Ad-
vocate’. 
‘‘(2) PARTICIPANT AND PLAN SPONSOR ADVO-
CATE.— 
‘‘(A) IN GENERAL.—The Office of the Par-
ticipant and Plan Sponsor Advocate shall be 
under the supervision and direction of an offi-
cial to be known as the ‘Participant and Plan 
Sponsor Advocate’. The Commissioner shall se-
lect the Participant and Plan Sponsor Advocate 
without regard to the provisions of title 5, 
United States Code, relating to appointments in 
the competitive service or Senior Executive 
Service. 
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‘‘(B) DUTIES.—The Participant and Plan 
Sponsor Advocate shall— 
‘‘(i) act as a liaison between the Inter-
nal Revenue Service, sponsors of sponsors 
of qualified retirement plans (as defined in 
section 4974(c)), and participants in such 
plans; 
‘‘(ii) advocate for the full attainment 
of the rights of such plan sponsors and 
participants; 
‘‘(iii) assist pension plan sponsors and 
participants in resolving disputes with the 
Internal Revenue Service; 
‘‘(iv) identify areas in which partici-
pants and plan sponsors have persistent 
problems in dealings with the Internal Rev-
enue Service; 
‘‘(v) to the extent possible, propose 
changes in the administrative practices of 
the Internal Revenue Service to mitigate 
problems; 
‘‘(vi) 
identify 
potential 
legislative 
changes which may be appropriate to miti-
gate problems; and 
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