SEC. 2. TREATMENT FOR COVERED DEFERRED EXECUTIVE 
COMPENSATION ARRANGEMENTS WHICH IS 
COMPARABLE TO CERTAIN FUNDING-BASED 
LIMITS ON BENEFITS AND BENEFIT ACCRU-
ALS IMPOSED ON DEFINED BENEFIT PEN-
SION PLANS. 
(a) IN GENERAL.—Section 206(g) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1056(g)) is amended— 
(1) by redesignating paragraphs (9) and (10) 
as paragraphs (10) and (11), respectively; and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) COMPARABLE TREATMENT FOR COVERED 
DEFERRED
EXECUTIVE
COMPENSATION
ARRANGE-
MENTS.— 
‘‘(A) IN GENERAL.—In any case in which 
a limitation applies under paragraph (2), (3), 
or (4) for any plan year in the case of a defined 
benefit plan which is a single-employer plan— 
‘‘(i) no amount of deferred compensa-
tion may accrue to a disqualified individual 
during such plan year under the terms of 
any covered deferred executive compensa-
tion arrangement maintained by the plan 
sponsor (irrespective of whether the ac-
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crual in deferred compensation is ex-
pressed in the form of a promise, a guar-
antee, or any other representation), and 
‘‘(ii) in the case of such an arrange-
ment established during or after the 1-year 
period preceding such plan year (or any 
amendment to such an arrangement if 
such amendment is adopted during or after 
such 1-year period), no distribution of ac-
crued deferred compensation may be made 
under such arrangement (or such amend-
ment) to a disqualified individual during 
such plan year. 
‘‘(B) COVERED
DEFERRED
EXECUTIVE 
COMPENSATION ARRANGEMENT DEFINED.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘covered deferred 
executive 
compensation 
arrangement’ 
means any arrangement providing for the 
deferral of compensation of a disqualified 
individual, whether or not— 
‘‘(I) compensation of the dis-
qualified individual which is deferred 
under such arrangement is subject to 
substantial risk of forfeiture, 
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‘‘(II) the disqualified individual’s 
rights to the compensation deferred 
under the arrangement are no greater 
than the rights of a general creditor 
of the plan sponsor, 
‘‘(III) all amounts set aside (di-
rectly or indirectly) for purposes of 
paying the deferred compensation (in-
cluding income), and all income at-
tributable to such amounts, remain 
(until made available to the disquali-
fied individual or other beneficiary) 
solely the property of the plan sponsor 
(without being restricted to the provi-
sion of benefits under the arrange-
ment), 
‘‘(IV) the amounts referred to in 
subclause (III) are available to satisfy 
the claims of the plan sponsor’s gen-
eral creditors at all times (not merely 
after bankruptcy or insolvency), and 
‘‘(V) some or all of the com-
pensation of the disqualified individual 
which is deferred under such arrange-
ment is guaranteed by an insurance 
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company, insurance service, or other 
similar organization. 
‘‘(ii) EXCEPTION FOR QUALIFIED AR-
RANGEMENTS.—Such term shall not in-
clude a arrangement that is— 
‘‘(I) 
described 
in 
section 
219(g)(5)(A) of the Internal Revenue 
Code of 1986, or 
‘‘(II) an eligible deferred com-
pensation plan (as defined in section 
457(b) of such Code) of an eligible 
employer 
described 
in 
section 
457(e)(1)(A) of such Code. 
‘‘(C) 
DISQUALIFIED
INDIVIDUAL
DE-
FINED.—For purposes of this paragraph, the 
term ‘disqualified individual’ means a director 
or executive officer of the plan sponsor.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning on or after the date of the enactment of this Act. 
Æ 
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