‘‘(II) the dollar amount in effect 
under clause (i) for such calendar 
year. 
The Secretary in regulations or other guid-
ance may provide how such amount shall 
be distributed in the case of an individual 
with more than one applicable eligible re-
tirement plan. 
‘‘(iv) INFLATION
ADJUSTMENT.—In 
the case of any calendar year beginning 
after 2020, the $50,000 amount in clause 
(i) shall be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3) 
for the calendar year, determined by 
substituting ‘calendar year 2019’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause 
shall be rounded to the next lowest mul-
tiple of $5,000. 
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‘‘(v) PLAN ADMINISTRATOR RELIANCE 
ON EMPLOYEE CERTIFICATION.—An appli-
cable eligible retirement plan described in 
clause (iii), (iv), (v), or (vi) of section 
402(c)(8)(B) shall not be treated as failing 
to meet the requirements of this paragraph 
in the case of any failure to make a re-
quired minimum distribution for a cal-
endar year if— 
‘‘(I) the aggregate value of an 
employee’s entire interest under all 
applicable eligible retirement plans of 
the employer on the last day of the 
calendar year to which such distribu-
tion relates does not exceed the dollar 
amount in effect for such year under 
clause (i), and 
‘‘(II) the employee certifies that 
the aggregate value of the employee’s 
entire interest under all applicable eli-
gible retirement plans on the last day 
of the calendar year to which such 
distribution relates did not exceed the 
dollar amount in effect for such year 
under clause (i). 
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‘‘(vi) AGGREGATION
RULE.—All em-
ployers treated as a single employer under 
subsection (b), (c), (m), or (o) of section 
414 shall be treated as a single employer 
for purposes of clause (v).’’. 
(b) PLAN
ADMINISTRATOR
REPORTING.—Section 
6047 is amended by redesignating subsection (h) as sub-
section (i) and by inserting after subsection (g) the fol-
lowing new subsection: 
‘‘(h) ACCOUNT BALANCE FOR PARTICIPANTS WHO 
HAVE ATTAINED AGE 69.— 
‘‘(1) IN GENERAL.—Not later than January 31 
of each year, the plan administrator (as defined in 
section 414(g)) of each applicable eligible retirement 
plan (as defined in section 401(a)(9)(H)) shall make 
a return to the Secretary with respect to each par-
ticipant of such plan who has attained age 69 as of 
the end of the preceding calendar year which 
states— 
‘‘(A) the name and plan number of the 
plan, 
‘‘(B) the name and address of the plan ad-
ministrator, 
‘‘(C) the name, address, and taxpayer 
identification number of the participant, and 
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‘‘(D) the account balance of such partici-
pant as of the end of the preceding calendar 
year. 
‘‘(2) STATEMENT
FURNISHED
TO
PARTICI-
PANT.—Every person required to make a return 
under paragraph (1) with respect to a participant 
shall furnish a copy of such return to such partici-
pant. 
‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT 
PLANS AND ANNUITIES.—In the case of an applica-
ble eligible retirement plan described in clause (i) or 
(ii) of section 402(c)(8)(B)— 
‘‘(A) any reference in this subsection to 
the plan administrator shall be treated as a ref-
erence to the trustee or issuer, as the case may 
be, and 
‘‘(B) any reference in this subsection to 
the participant shall be treated as a reference 
to the individual for whom such account or an-
nuity is maintained.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions required to be 
made in calendar years beginning more than 120 days 
after the date of the enactment of this Act. 
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SEC. 113. ELECTIVE DEFERRALS BY MEMBERS OF THE 
READY RESERVE OF A RESERVE COMPONENT 
OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 402(g) is amended by 
adding at the end the following new paragraph: 
‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF 
READY RESERVE.— 
‘‘(A) IN GENERAL.—In the case of a quali-
fied ready reservist for any taxable year, the 
limitations of subparagraphs (A) and (C) of 
paragraph (1) shall be applied separately with 
respect to— 
‘‘(i) elective deferrals of such qualified 
ready reservist with respect to compensa-
tion described in subparagraph (B), and 
‘‘(ii) all other elective deferrals of 
such qualified ready reservist. 
‘‘(B) QUALIFIED READY RESERVIST.—For 
purposes of this paragraph, the term ‘qualified 
ready reservist’ means any individual for any 
taxable year if such individual received com-
pensation for service as a member of the Ready 
Reserve of a reserve component (as defined in 
section 101 of title 37, United States Code) 
during such taxable year.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after De-
cember 31, 2019. 
TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Section 401(b) is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN 
AMENDMENTS.— 
‘‘(1) CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ADOPTION
OF
PLAN.—If an employer 
adopts a stock bonus, pension, profit-sharing, or an-
nuity plan after the close of a taxable year but be-
fore the time prescribed by law for filing the employ-
er’s return of tax for the taxable year (including ex-
tensions thereof), the employer may elect to treat 
the plan as having been adopted as of the last day 
of the taxable year.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plans adopted for taxable years 
beginning after December 31, 2019. 
SEC. 202. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 is amended— 
(1) by redesignating subsection (o) as sub-
section (p), and 
(2) by inserting after subsection (n) the fol-
lowing new subsection: 
‘‘(o) 
SPECIAL
RULES
FOR
APPLYING
NON-
DISCRIMINATION RULES TO PROTECT OLDER, LONGER 
SERVICE AND GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING
OF
DEFINED
BENEFIT
PLANS 
WITH CLOSED CLASSES OF PARTICIPANTS.— 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED
TO
CLOSED
CLASSES.—A defined 
benefit plan which provides benefits, rights, or 
features to a closed class of participants shall 
not fail to satisfy the requirements of sub-
section (a)(4) by reason of the composition of 
such closed class or the benefits, rights, or fea-
tures provided to such closed class, if— 
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‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan 
years, such benefits, rights, and features 
satisfy the requirements of subsection 
(a)(4) (without regard to this subpara-
graph but taking into account the rules of 
subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C). 
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), a defined benefit 
plan described in clause (iii) may be aggre-
gated and tested on a benefits basis with 
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1 or more defined contribution plans, in-
cluding with the portion of 1 or more de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
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scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contribu-
tions shall be treated in the same 
manner as nonelective contributions, 
including for purposes of applying the 
rules of subsection (l). 
‘‘(iii) PLANS DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of 
which the class closes and the 2 suc-
ceeding plan years, the plan satisfies 
the requirements of section 410(b) 
and subsection (a)(4) (without regard 
to this subparagraph but taking into 
account the rules of subparagraph 
(I)), 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class 
or the benefits provided to such closed 
class does not discriminate signifi-
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cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
‘‘(C) PLANS DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for 
at least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there 
has not been a substantial increase in the 
coverage or value of the benefits, rights, or 
features described in subparagraph (A) or 
in the coverage or benefits under the plan 
described in subparagraph (B)(iii) (which-
ever is applicable). 
‘‘(D) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR BENEFITS, RIGHTS, AND FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or 
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features described in subparagraph (A) during 
the applicable 5-year period only if, during such 
period— 
‘‘(i) the number of participants cov-
ered by such benefits, rights, or features 
on the date such period ends is more than 
50 percent greater than the number of 
such participants on the first day of the 
plan year in which such period began, or 
‘‘(ii) such benefits, rights, and fea-
tures have been modified by 1 or more 
plan amendments in such a way that, as of 
the date the class is closed, the value of 
such benefits, rights, and features to the 
closed class as a whole is substantially 
greater than the value as of the first day 
of such 5-year period, solely as a result of 
such amendments. 
‘‘(E) DETERMINATION
OF
SUBSTANTIAL 
INCREASE FOR AGGREGATE TESTING ON BENE-
FITS BASIS.—In applying subparagraph (C)(ii) 
for purposes of subparagraph (B)(iii)(IV), a 
plan shall be treated as having had a substan-
tial increase in coverage or benefits during the 
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a single plan rather than as separate plans 
maintained by each employer in the plan. 
‘‘(I) SPECIAL
RULES.—For purposes of 
subparagraphs (A)(i) and (B)(iii)(II), the fol-
lowing rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) Two or more plans shall not fail 
to be eligible to be aggregated and treated 
as a single plan solely by reason of having 
different plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a 
merger, acquisition, divestiture, or similar 
event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may 
be taken into account. 
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The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which 
subparagraph (B)(i) applies may be aggregated 
and treated as 1 plan for purposes of deter-
mining whether such plans meet the require-
ments of subsection (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun- 
off plan continues to satisfy the requirements 
of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) 
of the spun-off plan shall continue with respect 
to such other employer. 
‘‘(2) TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
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‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if— 
‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan 
years, such closed class of participants sat-
isfies 
the 
requirements 
of 
section 
410(b)(2)(A)(i) (determined by applying 
the rules of paragraph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, ben-
efits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
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‘‘(iv) the class was closed before April 
5, 2017, or the defined benefit plan under 
clause (i) is described in paragraph (1)(C) 
(as applied for purposes of paragraph 
(1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUD-
ING MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes 
of determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contribu-
tions may be aggregated and tested on a 
benefits basis with the portion of 1 or 
more other defined contribution plans 
which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contribu-
tions or nonelective contributions, or 
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‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a 
tax credit employee stock ownership 
plan (within the meaning of section 
409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the 
rules of paragraph (1)(B)(ii) shall apply 
for purposes of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER
SERVICE
PARTICIPANTS.—In 
the case of a defined contribution plan which 
provides benefits, rights, or features to a closed 
class of participants whose accruals under a de-
fined benefit plan have been reduced or elimi-
nated, the plan shall not fail to satisfy the re-
quirements of subsection (a)(4) solely by reason 
of the composition of the closed class or the 
benefits, rights, or features provided to such 
closed class if the defined contribution plan and 
defined benefit plan otherwise meet the require-
ments of subparagraph (A) but for the fact that 
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the make-whole contributions under the defined 
contribution plan are made in whole or in part 
through matching contributions. 
‘‘(D) SPUN-OFF PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the 
original plan was still within the 3-year period 
described in such clause at the time of the spin 
off) and (iii) of subparagraph (A), as deter-
mined for purposes of subparagraph (A) or (C), 
whichever is applicable. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the 
class which are reasonably calculated, in a con-
sistent manner, to replace some or all of the re-
tirement benefits which the employee would 
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have received under the defined benefit plan 
and any other plan or qualified cash or deferred 
arrangement under subsection (k)(2) if no 
change had been made to such defined benefit 
plan and such other plan or arrangement. For 
purposes of the preceding sentence, consistency 
shall not be required with respect to employees 
who were subject to different benefit formulas 
under the defined benefit plan. 
‘‘(B) REFERENCES TO CLOSED CLASS OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, ex-
cept that 1 or more classes of participants 
closed on different dates shall not be aggre-
gated for purposes of determining the date any 
such class was closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has 
the meaning given such term in section 
414(q).’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Section 
401(a)(26) is amended by adding at the end the following 
new subparagraph: 
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‘‘(I) PROTECTED PARTICIPANTS.— 
‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if— 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed 
class of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
paragraph) as of the effective date of 
the amendment, and 
‘‘(III) the amendment was adopt-
ed before April 5, 2017, or the plan is 
described in clause (ii). 
‘‘(ii) PLANS DESCRIBED.—A plan is 
described in this clause if the plan would 
be described in subsection (o)(1)(C), as ap-
plied 
for 
purposes 
of 
subsection 
(o)(1)(B)(iii)(IV) and by treating the effec-
tive date of the amendment as the date the 
class was closed for purposes of subsection 
(o)(1)(C). 
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‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF
PLANS.—For pur-
poses of this subparagraph, if a portion of 
a plan described in clause (i) is spun off to 
another employer, the treatment under 
clause (i) of the spun-off plan shall con-
tinue with respect to the other employer.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), 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 referred to in such amendments are adopted or 
effective before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION
OF
EARLIER
APPLICA-
TION.—At the election of the plan sponsor, the 
amendments made by this section shall apply to 
plan years beginning after December 31, 2013. 
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(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants 
shall be treated as being closed before April 5, 
2017, if the plan sponsor’s intention to create 
such closed class is reflected in formal written 
documents and communicated to participants 
before such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of sec-
tion 
401(o)(1)(A), 
401(o)(1)(B)(iii), 
or 
401(a)(26) of such Code (as added by this sec-
tion) to such plan solely because in the case 
of— 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more 
benefits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
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(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this 
Act to cease all benefit accruals, and is 
further amended after such date of enact-
ment to provide benefit accruals to a closed 
class of participants. Any such section 
shall only apply if the plan otherwise meets 
the requirements of such section and in ap-
plying such section, the date the class of 
participants is closed shall be the effective 
date of the later amendment. 
SEC. 203. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1104) is amended by adding 
at the end the following: 
‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 
‘‘(1) IN GENERAL.—With respect to the selec-
tion of an insurer for a guaranteed retirement in-
come contract, the requirements of subsection 
(a)(1)(B) will be deemed to be satisfied if a fidu-
ciary— 
‘‘(A) engages in an objective, thorough, 
and analytical search for the purpose of identi-
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fying insurers from which to purchase such con-
tracts; 
‘‘(B) with respect to each insurer identified 
under subparagraph (A)— 
‘‘(i) considers the financial capability 
of such insurer to satisfy its obligations 
under the guaranteed retirement income 
contract; and 
‘‘(ii) considers the cost (including fees 
and commissions) of the guaranteed retire-
ment income contract offered by the in-
surer in relation to the benefits and prod-
uct features of the contract and adminis-
trative services to be provided under such 
contract; and 
‘‘(C) on the basis of such consideration, 
concludes that— 
‘‘(i) at the time of the selection, the 
insurer is financially capable of satisfying 
its obligations under the guaranteed retire-
ment income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is rea-
sonable. 
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‘‘(2) FINANCIAL
CAPABILITY
OF
THE
IN-
SURER.—A fiduciary will be deemed to satisfy the 
requirements of paragraphs (1)(B)(i) and (1)(C)(i) 
if— 
‘‘(A) the fiduciary obtains written rep-
resentations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts; 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate 
of authority from the insurance com-
missioner of its domiciliary State 
which has not been revoked or sus-
pended; 
‘‘(II) has filed audited financial 
statements in accordance with the 
laws of its domiciliary State under ap-
plicable statutory accounting prin-
ciples; 
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
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‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation; 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances oc-
curring after the provision of the represen-
tations in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of 
issuance of the guaranteed retirement in-
come contract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary 
has not received any notice described in sub-
paragraph (A)(iv) and is in possession of no 
other information which would cause the fidu-
ciary to question the representations provided. 
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‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
tract, including features and benefits of the contract 
and attributes of the insurer (including, without lim-
itation, the insurer’s financial strength) in conjunc-
tion with the cost of the contract. 
‘‘(4) TIME OF SELECTION.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the time of selection is— 
‘‘(i) the time that the insurer and the 
contract are selected for distribution of 
benefits to a specific participant or bene-
ficiary; or 
‘‘(ii) if the fiduciary periodically re-
views the continuing appropriateness of the 
conclusion described in paragraph (1)(C) 
with respect to a selected insurer, taking 
into account the considerations described 
in such paragraph, the time that the in-
surer and the contract are selected to pro-
vide benefits at future dates to participants 
or beneficiaries under the plan. 
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Nothing in the preceding sentence shall be con-
strued to require the fiduciary to review the ap-
propriateness of a selection after the purchase 
of a contract for a participant or beneficiary. 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic re-
view described in subparagraph (A)(ii) if the fi-
duciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described 
in paragraph (2)(A)(iv) or otherwise becomes 
aware of facts that would cause the fiduciary to 
question such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
beneficiary pursuant to the selected guaranteed re-
tirement income contract, for any losses that may 
result to the participant or beneficiary due to an in-
surer’s inability to satisfy its financial obligations 
under the terms of such contract. 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
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‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of 
such companies. 
‘‘(B) GUARANTEED RETIREMENT INCOME 
CONTRACT.—The term ‘guaranteed retirement 
income contract’ means an annuity contract for 
a fixed term or a contract (or provision or fea-
ture thereof) which provides guaranteed bene-
fits annually (or more frequently) for at least 
the remainder of the life of the participant or 
the joint lives of the participant and the partici-
pant’s designated beneficiary as part of an indi-
vidual account plan.’’. 
SEC. 204. DISCLOSURE REGARDING LIFETIME INCOME. 
(a) IN GENERAL.—Subparagraph (B) of section 
105(a)(2) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1025(a)(2)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘diversification.’’ 
and inserting ‘‘diversification, and’’; and 
(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure 
described in subparagraph (D)(i). 
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In the case of pension benefit statements de-
scribed in clause (i) of paragraph (1)(A), a life-
time income disclosure under clause (iii) of this 
subparagraph shall be required to be included 
in only one pension benefit statement during 
any one 12-month period.’’. 
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.— 
‘‘(i) IN GENERAL.— 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT
OF
THE
TOTAL
BENE-
FITS ACCRUED.—For purposes of this 
subparagraph, the term ‘lifetime in-
come stream equivalent of the total 
benefits accrued’ means the amount of 
monthly payments the participant or 
beneficiary would receive if the total 
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accrued benefits of such participant or 
beneficiary were used to provide life-
time income streams described in sub-
clause (III), based on assumptions 
specified in rules prescribed by the 
Secretary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause 
are a qualified joint and survivor an-
nuity (as defined in section 205(d)), 
based on assumptions specified in 
rules prescribed by the Secretary, in-
cluding the assumption that the par-
ticipant or beneficiary has a spouse of 
equal age, and a single life annuity. 
Such lifetime income streams may 
have a term certain or other features 
to the extent permitted under rules 
prescribed by the Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enact-
ment of the Family Savings Act of 2019, 
the Secretary shall issue a model lifetime 
income disclosure, written in a manner so 
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as to be understood by the average plan 
participant, which— 
‘‘(I) explains that the lifetime in-
come stream equivalent is only pro-
vided as an illustration; 
‘‘(II) explains that the actual 
payments under the lifetime income 
stream described in clause (i)(III) 
which may be purchased with the 
total benefits accrued will depend on 
numerous factors and may vary sub-
stantially from the lifetime income 
stream equivalent in the disclosures; 
‘‘(III) explains the assumptions 
upon which the lifetime income stream 
equivalent was determined; and 
‘‘(IV) provides such other similar 
explanations as the Secretary con-
siders appropriate. 
‘‘(iii) ASSUMPTIONS
AND
RULES.— 
Not later than 1 year after the date of the 
enactment of the Family Savings Act of 
2019, the Secretary shall— 
‘‘(I) prescribe assumptions which 
administrators of individual account 
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plans may use in converting total ac-
crued benefits into lifetime income 
stream equivalents for purposes of 
this subparagraph; and 
‘‘(II) issue interim final rules 
under clause (i). 
In prescribing assumptions under sub-
clause (I), the Secretary may prescribe a 
single set of specific assumptions (in which 
case the Secretary may issue tables or fac-
tors which facilitate such conversions), or 
ranges of permissible assumptions. To the 
extent that an accrued benefit is or may be 
invested in a lifetime income stream de-
scribed in clause (i)(III), the assumptions 
prescribed under subclause (I) shall, to the 
extent appropriate, permit administrators 
of individual account plans to use the 
amounts payable under such lifetime in-
come stream as a lifetime income stream 
equivalent. 
‘‘(iv) LIMITATION ON LIABILITY.—No 
plan fiduciary, plan sponsor, or other per-
son shall have any liability under this title 
solely by reason of the provision of lifetime 
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income stream equivalents which are de-
rived in accordance with the assumptions 
and rules described in clause (iii) and 
which include the explanations contained in 
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii). 
‘‘(v) EFFECTIVE DATE.—The require-
ment in subparagraph (B)(iii) shall apply 
to pension benefit statements furnished 
more than 12 months after the latest of 
the issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) the assumptions under 
clause (iii).’’. 
SEC. 205. MODIFICATION OF PBGC PREMIUMS FOR CSEC 
PLANS. 
(a) FLAT RATE PREMIUM.—Subparagraph (A) of 
section 4006(a)(3) of the Employee Retirement Income 
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Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amend-
ed— 
(1) in clause (i), by striking ‘‘plan,’’ and insert-
ing ‘‘plan other than a CSEC plan (as defined in 
section 210(f)(1))’’; 
(2) in clause (v), by striking ‘‘or’’ at the end; 
(3) in clause (vi), by striking the period at the 
end and inserting ‘‘, or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(vii) in the case of a CSEC plan (as 
defined in section 210(f)(1)), for plan 
years beginning after December 31, 2018, 
for each individual who is a participant in 
such plan during the plan year an amount 
equal to the sum of— 
‘‘(I) the additional premium (if 
any) determined under subparagraph 
(E), and 
‘‘(II) $19.’’. 
(b) VARIABLE RATE PREMIUM.— 
(1) UNFUNDED VESTED BENEFITS.— 
(A) IN
GENERAL.—Subparagraph (E) of 
section 4006(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
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1306(a)(3)) is amended by adding at the end 
the following new clause: 
‘‘(v) For purposes of clause (ii), in the 
case of a CSEC plan (as defined in section 
210(f)(1)), the term ‘unfunded vested ben-
efits’ means, for plan years beginning after 
December 31, 2018, the excess (if any) 
of— 
‘‘(I) the funding liability of the 
plan as determined under section 
306(j)(5)(C) for the plan year by only 
taking into account vested benefits, 
over 
‘‘(II) the fair market value of 
plan assets for the plan year which 
are held by the plan on the valuation 
date.’’. 
(B) CONFORMING
AMENDMENT.—Clause 
(iii) of section 4006(a)(3)(E) of such Act (29 
U.S.C. 1306(a)(3)(E)) is amended by striking 
‘‘For purposes’’ and inserting ‘‘Except as pro-
vided in clause (v), for purposes’’. 
(2) APPLICABLE DOLLAR AMOUNT.— 
(A) IN GENERAL.—Paragraph (8) of sec-
tion 4006(a) of such Act (29 U.S.C. 1306(a)) 
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is amended by adding at the end the following 
new subparagraph: 
‘‘(E) CSEC PLANS.—In the case of a 
CSEC plan (as defined in section 210(f)(1)), 
the applicable dollar amount shall be $9.’’. 
(B) CONFORMING AMENDMENT.—Subpara-
graph (A) of section 4006(a)(8) of such Act (29 
U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 
and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 
TITLE III—OTHER SAVINGS 
PROVISIONS 
SEC. 301. EXPANSION OF SECTION 529 PLANS. 
(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSO-
CIATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Section 529(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
paragraph: 
‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSO-
CIATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Any reference in this subsection to the 
term ‘qualified higher education expense’ shall in-
clude a reference to expenses for fees, books, sup-
plies, and equipment required for the participation 
of a designated beneficiary in an apprenticeship pro-
gram registered and certified with the Secretary of 
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Labor under section 1 of the National Apprentice-
ship Act (29 U.S.C. 50).’’. 
(b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING 
EXPENSES.—Section 529(c)(7) of such Code is amended 
by striking ‘‘include a reference to’’ and all that follows 
and inserting ‘‘include a reference to— 
‘‘(A) expenses for tuition in connection 
with enrollment or attendance of a designated 
beneficiary at an elementary or secondary pub-
lic, private, or religious school, and 
‘‘(B) expenses, with respect to a des-
ignated beneficiary, for— 
‘‘(i) curriculum and curricular mate-
rials, 
‘‘(ii) books or other instructional ma-
terials, 
‘‘(iii) online educational materials, 
‘‘(iv) tuition for tutoring or edu-
cational classes outside of the home (but 
only if the tutor or class instructor is not 
related (within the meaning of section 
152(d)(2)) to the student), 
‘‘(v) dual enrollment in an institution 
of higher education, and 
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‘‘(vi) educational therapies for stu-
dents with disabilities, 
in connection with a homeschool (whether treat-
ed as a homeschool or a private school for pur-
poses of applicable State law).’’. 
(c) DISTRIBUTIONS
FOR QUALIFIED EDUCATION 
LOAN REPAYMENTS.— 
(1) IN GENERAL.—Section 529(c) of such Code, 
as amended by subsection (a), is amended by adding 
at the end the following new paragraph: 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any reference in this 
subsection to the term ‘qualified higher edu-
cation expense’ shall include a reference to 
amounts paid as principal or interest on any 
qualified education loan (as defined in section 
221(d)) of the designated beneficiary or a sib-
ling of the designated beneficiary. 
‘‘(B) LIMITATION.—The amount of dis-
tributions treated as a qualified higher edu-
cation expense under this paragraph with re-
spect to the loans of any individual shall not ex-
ceed $10,000 (reduced by the amount of dis-
tributions so treated for all prior taxable years). 
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‘‘(C) SPECIAL
RULES
FOR
SIBLINGS
OF 
THE DESIGNATED BENEFICIARY.— 
‘‘(i) SEPARATE
ACCOUNTING.—For 
purposes of subparagraph (B) and sub-
section (d), amounts treated as a qualified 
higher education expense with respect to 
the loans of a sibling of the designated 
beneficiary shall be taken into account 
with respect to such sibling and not with 
respect to such designated beneficiary. 
‘‘(ii) SIBLING
DEFINED.—For pur-
poses of this paragraph, the term ‘sibling’ 
means an individual who bears a relation-
ship to the designated beneficiary which is 
described in section 152(d)(2)(B).’’. 
(2) COORDINATION WITH DEDUCTION FOR STU-
DENT LOAN INTEREST.—Section 221(e)(1) of such 
Code is amended by adding at the end the following: 
‘‘The deduction otherwise allowable under subsection 
(a) (prior to the application of subsection (b)) to the 
taxpayer for any taxable year shall be reduced (but 
not below zero) by so much of the distributions 
treated as a qualified higher education expense 
under section 529(c)(9) with respect to loans of the 
taxpayer as would be includible in gross income 
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under section 529(c)(3)(A) for such taxable year but 
for such treatment.’’. 
(d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND 
SECONDARY SCHOOL EXPENSES IN ADDITION TO TUI-
TION.—Section 529(c)(7)(A), as amended by subsection 
(b), is amended to read as follows: 
‘‘(A) 
expenses 
described 
in 
section 
530(b)(3)(A)(i) in connection with enrollment 
or attendance of a designated beneficiary at an 
elementary or secondary public, private, or reli-
gious school, and’’. 
(e) UNBORN CHILDREN ALLOWED
AS ACCOUNT 
BENEFICIARIES.—Section 529(e) is amended by adding at 
the end the following new paragraph: 
‘‘(6) TREATMENT OF UNBORN CHILDREN.— 
‘‘(A) IN GENERAL.—Nothing shall prevent 
an unborn child from being treated as a des-
ignated beneficiary or an individual under this 
section. 
‘‘(B) UNBORN
CHILD.—For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term ‘unborn 
child’ means a child in utero. 
‘‘(ii) CHILD
IN
UTERO.—The term 
‘child in utero’ means a member of the 
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