I 
108TH CONGRESS 
1ST SESSION H. R. 1000
To amend title I of the Employee Retirement Income Security Act of 1974 
and the Internal Revenue Code of 1986 to provide additional protections 
to participants and beneficiaries in individual account plans from exces-
sive investment in employer securities and to promote the provision 
of retirement investment advice to workers managing their retirement 
income assets. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 27, 2003
Mr. BOEHNER (for himself, Mr. SAM JOHNSON of Texas, Mr. GREENWOOD, 
Mr. GIBBONS, Mr. KELLER, Mr. WILSON of South Carolina, Mr. NOR-
WOOD, Mr. PLATTS, Mr. TIBERI, Mr. SHAYS, Mr. SIMMONS, Mr. 
MCKEON, Mrs. BIGGERT, Mr. FRELINGHUYSEN, Mr. ISAKSON, Ms. 
GINNY BROWN-WAITE of Florida, Mr. LATOURETTE, Ms. NORTON, Mr. 
SOUDER, Mr. SENSENBRENNER, Mr. ENGLISH, Mr. GREEN of Wisconsin, 
Mr. HERGER, Mr. WELDON of Pennsylvania, Mr. BEAUPREZ, Mr. 
FEENEY, Mr. NEY, Mr. BALLENGER, Mr. SWEENEY, Mr. BRADY of 
Texas, Mr. BURR, Mrs. MUSGRAVE, Mr. DEMINT, Mr. CRANE, Ms. 
HART, Mr. OXLEY, Mr. UPTON, Mrs. BLACKBURN, Mr. KLINE, Mr. 
COLE, Mr. CASTLE, Mr. PETERSON of Pennsylvania, Mr. TANCREDO, Mr. 
ROGERS of Michigan, Mr. KOLBE, Mr. JANKLOW, Mr. REYNOLDS, Mr. 
REHBERG, Mr. HILL, Mr. FOSSELLA, Mr. BOOZMAN, Mr. CULBERSON, 
and Mr. WALSH) introduced the following bill; which was referred to the 
Committee on Education and the Workforce, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 and the Internal Revenue Code of 
1986 to provide additional protections to participants
and beneficiaries in individual account plans from exces-
sive investment in employer securities and to promote 
the provision of retirement investment advice to workers 
managing their retirement income assets.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Pension Security Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows:
Sec. 1. Short title and table of contents. 
TITLE I—IMPROVEMENTS IN PENSION SECURITY 
Sec. 101. Periodic pension benefits statements. 
Sec. 102. Inapplicability of relief from fiduciary liability during blackout peri-
ods. 
Sec. 103. Informational and educational support for pension plan fiduciaries. 
Sec. 104. Diversification requirements for defined contribution plans that hold 
employer securities. 
Sec. 105. Prohibited transaction exemption for the provision of investment ad-
vice. 
Sec. 106. Study regarding impact on retirement savings of participants and 
beneficiaries by requiring consultants to advise plan fiduciaries 
of individual account plans. 
Sec. 107. Treatment of qualified retirement planning services. 
Sec. 108. Effective dates and related rules. 
TITLE II—OTHER PROVISIONS RELATING TO PENSIONS 
Sec. 201. Amendments to Retirement Protection Act of 1994. 
Sec. 202. Reporting simplification. 
Sec. 203. Improvement of employee plans compliance resolution system. 
Sec. 204. Flexibility in nondiscrimination, coverage, and line of business rules. 
Sec. 205. Extension to all governmental plans of moratorium on application of 
certain nondiscrimination rules applicable to State and local 
plans. 
Sec. 206. Notice and consent period regarding distributions. 
Sec. 207. Annual report dissemination. 
Sec. 208. Technical corrections to Saver Act. 
Sec. 209. Missing participants. 
Sec. 210. Reduced PBGC premium for new plans of small employers. 
Sec. 211. Reduction of additional PBGC premium for new and small plans.
Sec. 212. Authorization for PBGC to pay interest on premium overpayment re-
funds. 
Sec. 213. Substantial owner benefits in terminated plans. 
Sec. 214. Benefit suspension notice. 
Sec. 215. Studies. 
Sec. 216. Interest rate range for additional funding requirements. 
TITLE III—GENERAL PROVISIONS 
Sec. 301. Provisions relating to plan amendments.
TITLE I—IMPROVEMENTS IN 
PENSION SECURITY 
SEC. 101. PERIODIC PENSION BENEFITS STATEMENTS. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—
(1) REQUIREMENTS.—
(A) IN GENERAL.—Section 105(a) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1025(a)) is amended to read 
as follows: 
‘‘(a)(1)(A) The administrator of an individual ac-
count plan shall furnish a pension benefit statement—
‘‘(i) to each plan participant at least annually, 
‘‘(ii) to each plan beneficiary upon written re-
quest, and 
‘‘(iii) in the case of an applicable individual ac-
count plan, to each individual who is a plan partici-
pant or beneficiary and who has a right to direct in-
vestments, at least quarterly. 
‘‘(B) The administrator of a defined benefit plan 
shall furnish a pension benefit statement—
‘‘(i) at least once every 3 years to each partici-
pant with a nonforfeitable accrued benefit who is 
employed by the employer maintaining the plan at 
the time the statement is furnished to participants, 
and 
‘‘(ii) to a plan participant or plan beneficiary of 
the plan upon written request. 
‘‘(2) A pension benefit statement under paragraph 
(1)—
‘‘(A) shall indicate, on the basis of the latest 
available information—
‘‘(i) the total benefits accrued, and 
‘‘(ii) the nonforfeitable pension benefits, if 
any, which have accrued, or the earliest date on 
which benefits will become nonforfeitable, 
‘‘(B) shall be written in a manner calculated to 
be understood by the average plan participant, and 
‘‘(C) may be provided in written form or in 
electronic or other appropriate form to the extent 
that such form is reasonably accessible to the recipi-
ent. 
‘‘(3)(A) In the case of a defined benefit plan, the re-
quirements of paragraph (1)(B)(i) shall be treated as met 
with respect to a participant if the administrator, at least 
once each year, provides the participant with notice, at
the participant’s last known address, of the availability of 
the pension benefit statement and the ways in which the 
participant may obtain such statement. Such notice shall
be provided in written, electronic, or other appropriate 
form, and may be included with other communications to 
the participant if done in a manner reasonably designed 
to attract the attention of the participant. 
‘‘(B) The Secretary may provide that years in which 
no employee or former employee benefits (within the 
meaning of section 410(b) of the Internal Revenue Code 
of 1986) under the plan need not be taken into account 
in determining the 3-year period under paragraph 
(1)(B)(i).’’. 
(B) CONFORMING AMENDMENTS.—
(i) Section 105 of the Employee Re-
tirement Income Security Act of 1974 (29 
U.S.C. 1025) is amended by striking sub-
section (d). 
(ii) Section 105(b) of such Act (29 
U.S.C. 1025(b)) is amended to read as fol-
lows: 
‘‘(b) In no case shall a participant or beneficiary of 
a plan be entitled to more than one statement described 
in clause (i) or (ii) of subsection (a)(1)(A) or clause (i) 
or (ii) of subsection (a)(1)(B), whichever is applicable, in
any 12-month period. If such report is required under sub-
section (a) to be furnished at least quarterly, the require-
ments of the preceding sentence shall be applied with re-
spect to each quarter in lieu of the 12-month period.’’. 
(2) INFORMATION
REQUIRED
FROM
APPLICA-
BLE INDIVIDUAL ACCOUNT PLANS.—Section 105 of 
such Act (as amended by paragraph (1)) is amended 
further by adding at the end the following new sub-
section: 
‘‘(d)(1) The statements required to be provided at 
least quarterly under subsection (a)(1)(A)(iii) in the case 
of applicable individual account plans shall include (to-
gether with the information required in subsection (a)) the 
following: 
‘‘(A) the value of each investment to which as-
sets in the individual account have been allocated, 
determined as of the most recent valuation date 
under the plan, including the value of any assets 
held in the form of employer securities, without re-
gard to whether such securities were contributed by 
the plan sponsor or acquired at the direction of the 
plan or of the participant or beneficiary, 
‘‘(B) an explanation, written in a manner cal-
culated to be understood by the average plan partici-
pant, of any limitations or restrictions on the right
of the participant or beneficiary to direct an invest-
ment, and 
‘‘(C) an explanation, written in a manner cal-
culated to be understood by the average plan partici-
pant, of the importance, for the long-term retire-
ment security of participants and beneficiaries, of a 
well-balanced and diversified investment portfolio, 
including a discussion of the risk of holding more 
than 25 percent of a portfolio in the security of any 
one entity, such as employer securities. 
‘‘(2) The Secretary shall issue guidance and model 
notices which meet the requirements of this subsection.’’. 
(3) DEFINITION
OF
APPLICABLE
INDIVIDUAL 
ACCOUNT PLAN.—Section 3 of such Act (29 U.S.C. 
1002) is amended by adding at the end the following 
new paragraph: 
‘‘(42)(A) The term ‘applicable individual account 
plan’ means any individual account plan, except that such 
term does not include an employee stock ownership plan 
(within the meaning of section 4975(e)(7) of the Internal 
Revenue Code of 1986) unless there are any contributions 
to such plan (or earnings thereunder) held within such 
plan that are subject to subsection (k)(3) or (m)(2) of sec-
tion 401 of the Internal Revenue Code of 1986. Such term 
shall not include a one-participant retirement plan.
‘‘(B) The term ‘one-participant retirement plan’ 
means a pension plan with respect to which the following 
requirements are met: 
‘‘(i) on the first day of the plan year—
‘‘(I) the plan covered only one individual 
(or the individual and the individual’s spouse) 
and the individual owned 100 percent of the 
plan sponsor (whether or not incorporated), or 
‘‘(II) the plan covered only one or more 
partners (or partners and their spouses) in the 
plan sponsor; 
‘‘(ii) the plan meets the minimum coverage re-
quirements of 410(b) of the Internal Revenue Code 
of 1986 (as in effect on the date of the enactment 
of this paragraph) without being combined with any 
other plan of the business that covers the employees 
of the business; 
‘‘(iii) the plan does not provide benefits to any-
one except the individual (and the individual’s 
spouse) or the partners (and their spouses); 
‘‘(iv) the plan does not cover a business that is 
a member of an affiliated service group, a controlled 
group of corporations, or a group of businesses 
under common control; and
‘‘(v) the plan does not cover a business that 
leases employees.’’. 
(4) CIVIL PENALTIES FOR FAILURE TO PRO-
VIDE QUARTERLY BENEFIT STATEMENTS.—Section 
502 of such Act (29 U.S.C. 1132) is amended—
(A) in subsection (a)(6), by striking ‘‘(6), 
or (7)’’ and inserting ‘‘(6), (7), or (8)’’; 
(B) by redesignating paragraph (8) of sub-
section (c) as paragraph (9); and 
(C) by inserting after paragraph (7) of 
subsection (c) the following new paragraph: 
‘‘(8) The Secretary may assess a civil penalty against 
any plan administrator of up to $1,000 a day from the 
date of such plan administrator’s failure or refusal to pro-
vide participants or beneficiaries with a benefit statement 
on at least a quarterly basis in accordance with section 
105(a)(1)(A)(iii).’’. 
(5) MODEL
STATEMENTS.—The Secretary of 
Labor shall, not later than 180 days after the date 
of the enactment of this Act, issue initial guidance 
and a model benefit statement, written in a manner 
calculated to be understood by the average plan par-
ticipant, that may be used by plan administrators in 
complying with the requirements of section 105 of 
the Employee Retirement Income Security Act of
1974. Not later than 75 days after the date of the 
enactment of this Act, the Secretary shall promul-
gate interim final rules necessary to carry out the 
amendments made by this subsection. 
(b) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.—
(1) PROVISION
OF
INVESTMENT
EDUCATION 
NOTICES
TO
PARTICIPANTS
IN
CERTAIN
PLANS.—
Section 414 of the Internal Revenue Code of 1986 
(relating to definitions and special rules) is amended 
by adding at the end the following: 
‘‘(w) PROVISION OF INVESTMENT EDUCATION NO-
TICES TO PARTICIPANTS IN CERTAIN PLANS.—
‘‘(1) IN GENERAL.—The plan administrator of 
an applicable pension plan shall provide to each ap-
plicable individual an investment education notice 
described in paragraph (2) at the time of the enroll-
ment of the applicable individual in the plan and not 
less often than annually thereafter. 
‘‘(2) INVESTMENT EDUCATION NOTICE.—An in-
vestment education notice is described in this para-
graph if such notice contains—
‘‘(A) an explanation, for the long-term re-
tirement security of participants and bene-
ficiaries, of generally accepted investment prin-
ciples, including principles of risk management 
and diversification, and 
‘‘(B) a discussion of the risk of holding 
substantial portions of a portfolio in the secu-
rity of any one entity, such as employer securi-
ties. 
‘‘(3) UNDERSTANDABILITY.—Each notice re-
quired by paragraph (1) shall be written in a man-
ner calculated to be understood by the average plan 
participant and shall provide sufficient information 
(as determined in accordance with guidance provided 
by the Secretary) to allow recipients to understand 
such notice. 
‘‘(4) FORM AND MANNER OF NOTICES.—The 
notices required by this subsection shall be in writ-
ing, except that such notices may be in electronic or 
other form (or electronically posted on the plan’s 
website) to the extent that such form is reasonably 
accessible to the applicable individual. 
‘‘(5) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) APPLICABLE INDIVIDUAL.—The term 
‘applicable individual’ means—
‘‘(i) any participant in the applicable 
pension plan,
‘‘(ii) any beneficiary who is an alter-
nate payee (within the meaning of section 
414(p)(8)) under a qualified domestic rela-
tions order (within the meaning of section 
414(p)(1)(A)), and 
‘‘(iii) any beneficiary of a deceased 
participant or alternate payee. 
‘‘(B) APPLICABLE
PENSION
PLAN.—The 
term ‘applicable pension plan’ means—
‘‘(i) a plan described in clause (i), (ii), 
or (iv) of section 219(g)(5)(A), and 
‘‘(ii) an eligible deferred compensation 
plan (as defined in section 457(b)) of an 
eligible employer described in section 
457(e)(1)(A), 
which permits any participant to direct the in-
vestment of some or all of his account in the 
plan or under which the accrued benefit of any 
participant depends in whole or in part on hy-
pothetical investments directed by the partici-
pant. Such term shall not include a one-partici-
pant retirement plan or a plan to which section 
105 of the Employee Retirement Income Secu-
rity Act of 1974 applies.
‘‘(C) 
ONE-PARTICIPANT
RETIREMENT 
PLAN DEFINED.—The term ‘one-participant re-
tirement plan’ means a retirement plan with re-
spect to which the following requirements are 
met: 
‘‘(i) on the first day of the plan 
year—
‘‘(I) the plan covered only one in-
dividual (or the individual and the in-
dividual’s spouse) and the individual 
owned 100 percent of the plan spon-
sor (whether or not incorporated), or 
‘‘(II) the plan covered only one 
or more partners (or partners and 
their spouses) in the plan sponsor; 
‘‘(ii) the plan meets the minimum cov-
erage requirements of 410(b) without 
being combined with any other plan of the 
business that covers the employees of the 
business; 
‘‘(iii) the plan does not provide bene-
fits to anyone except the individual (and 
the individual’s spouse) or the partners 
(and their spouses);
‘‘(iv) the plan does not cover a busi-
ness that is a member of an affiliated serv-
ice group, a controlled group of corpora-
tions, or a group of businesses under com-
mon control; and 
‘‘(v) the plan does not cover a busi-
ness that leases employees. 
‘‘(6) CROSS REFERENCE.—
‘‘For provisions relating to penalty for failure to 
provide the notice required by this section, see sec-
tion 6652(m).’’.
(2) PENALTY FOR FAILURE TO PROVIDE NO-
TICE.—Section 6652 of such Code (relating to fail-
ure to file certain information returns, registration 
statements, etc.) is amended by redesignating sub-
section (m) as subsection (n) and by inserting after 
subsection (l) the following new subsection: 
‘‘(m) FAILURE
TO PROVIDE INVESTMENT EDU-
CATION
NOTICES
TO
PARTICIPANTS
IN
CERTAIN 
PLANS.—In the case of each failure to provide a written 
explanation as required by section 414(w) with respect to 
an applicable individual (as defined in such section), at 
the time prescribed therefor, unless it is shown that such 
failure is due to reasonable cause and not to willful ne-
glect, there shall be paid, on notice and demand of the 
Secretary and in the same manner as tax, by the person 
failing to provide such notice, an amount equal to $100
for each such failure, but the total amount imposed on 
such person for all such failures during any calendar year 
shall not exceed $50,000.’’. 
SEC. 102. INAPPLICABILITY OF RELIEF FROM FIDUCIARY 
LIABILITY DURING BLACKOUT PERIODS. 
(a) IN GENERAL.—Section 404(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1104(c)) is amended by adding at the end the following 
new paragraph: 
‘‘(4)(A) Paragraph (1)(B) shall not apply in connec-
tion with the direction or diversification of assets credited 
to the account of any participant or beneficiary during a 
blackout period if, by reason of the imposition of such 
blackout period, the ability of such participant or bene-
ficiary to direct or diversify such assets is suspended, lim-
ited, or restricted. 
‘‘(B) If a fiduciary authorizing a blackout period 
meets the requirements of this title in connection with au-
thorizing such blackout period, such fiduciary shall not be 
liable under this title for any loss occurring during the 
blackout period as a result of any exercise by the partici-
pant or beneficiary of control over assets in his or her ac-
count prior to the blackout period. Matters to be consid-
ered in determining whether such fiduciary has met the 
requirements of this title include whether such fiduciary—
‘‘(i) has considered the reasonableness of the 
expected length of the blackout period, 
‘‘(ii) has provided the notice required under sec-
tion 101(i)(2), and 
‘‘(iii) has acted in accordance with the require-
ments of subsection (a) in determining whether to 
enter into the blackout period. 
‘‘(C) If a blackout period arises in connection with 
a change in the investment options offered under the plan, 
a participant or beneficiary shall be deemed to have exer-
cised control over the assets in his or her account prior 
to the blackout period, if, after reasonable notice of the 
change in investment options is given to such participant 
or beneficiary before such blackout period, assets in the 
account of the participant or beneficiary are transferred—
‘‘(i) to plan investment options in accordance 
with the affirmative election of the participant or 
beneficiary, or 
‘‘(ii) in any case in which there is no such elec-
tion, in the manner set forth in such notice. 
‘‘(D) Any imposition of any limitation or restriction 
that may govern the frequency of transfers between invest-
ment vehicles shall not be treated as the imposition of a 
blackout period to the extent such limitation or restriction 
is disclosed to participants or beneficiaries through the
summary plan description or materials describing specific 
investment alternatives under the plan. 
‘‘(E) For purposes of this paragraph, the term ‘black-
out period’ has the meaning given such term by section 
101(i)(7).’’. 
(b) GUIDANCE.—The Secretary of Labor shall, on or 
before December 31, 2004, issue interim final regulations 
providing guidance on how plan sponsors or any other af-
fected fiduciaries can satisfy their fiduciary responsibilities 
during any blackout period during which the ability of a 
participant or beneficiary to direct the investment of as-
sets in his or her individual account is suspended. 
SEC. 103. INFORMATIONAL AND EDUCATIONAL SUPPORT 
FOR PENSION PLAN FIDUCIARIES. 
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 new subsection: 
‘‘(e) The Secretary shall establish a program under 
which information and educational resources shall be 
made available on an ongoing basis to persons serving as 
fiduciaries under employee pension benefit plans so as to 
assist such persons in diligently and effectively carrying 
out their fiduciary duties in accordance with this part. 
Such program shall provide information concerning the 
practices that define prudent investment procedures for
plan fiduciaries. Information provided under the program 
shall address the relevant investment considerations for 
defined benefit and defined contribution plans, including 
investment in employer securities by such plans. In devel-
oping such program, the Secretary shall solicit information 
from the public, including investment education profes-
sionals.’’. 
SEC. 104. DIVERSIFICATION REQUIREMENTS FOR DEFINED 
CONTRIBUTION 
PLANS 
THAT 
HOLD 
EM-
PLOYER SECURITIES. 
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 204 of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1054) is amended—
(1) by redesignating subsection (j) as sub-
section (k); and 
(2) by inserting after subsection (i) the fol-
lowing new subsection: 
‘‘(j) DIVERSIFICATION REQUIREMENTS
FOR INDI-
VIDUAL ACCOUNT PLANS THAT HOLD EMPLOYER SECU-
RITIES.—
‘‘(1) IN GENERAL.—An applicable individual ac-
count plan shall meet the requirements of para-
graphs (2) and (3).
‘‘(2) EMPLOYEE
CONTRIBUTIONS
AND
ELEC-
TIVE DEFERRALS INVESTED IN EMPLOYER SECURI-
TIES.—In the case of the portion of the account at-
tributable to employee contributions and elective de-
ferrals which is invested in employer securities, a 
plan meets the requirements of this paragraph if 
each applicable individual may elect to direct the 
plan to divest any such securities in the individual’s 
account and to reinvest an equivalent amount in 
other investment options which meet the require-
ments of paragraph (4). 
‘‘(3) EMPLOYER CONTRIBUTIONS INVESTED IN 
EMPLOYER SECURITIES.—
‘‘(A) IN GENERAL.—In the case of the por-
tion of the account attributable to employer 
contributions (other than elective deferrals to 
which paragraph (2) applies) which is invested 
in employer securities, a plan meets the require-
ments of this paragraph if, under the plan—
‘‘(i) each applicable individual with a 
benefit based on 3 years of service may 
elect to direct the plan to divest any such 
securities in the individual’s account and 
to reinvest an equivalent amount in other
investment options which meet the require-
ments of paragraph (4), or 
‘‘(ii) with respect to any employer se-
curity allocated to an applicable individ-
ual’s account during any plan year, such 
applicable individual may elect to direct 
the plan to divest such employer security 
after a date which is not later than 3 years 
after the end of such plan year and to re-
invest an equivalent amount in other in-
vestment options which meet the require-
ments of paragraph (4). 
‘‘(B) APPLICABLE INDIVIDUAL WITH BEN-
EFIT
BASED
ON
YEARS
OF
SERVICE.—For 
purposes of subparagraph (A), an applicable in-
dividual has a benefit based on 3 years of serv-
ice if such individual would be an applicable in-
dividual if only participants in the plan who 
have completed at least 3 years of service (as 
determined under section 203(b)) were referred 
to in paragraph (5)(B)(i). 
‘‘(4) INVESTMENT OPTIONS.—The requirements 
of this paragraph are met if—
‘‘(A) the plan offers not less than 3 invest-
ment options, other than employer securities, to
which an applicable individual may direct the 
proceeds from the divestment of employer secu-
rities pursuant to this subsection, each of which 
is diversified and has materially different risk 
and return characteristics, and 
‘‘(B) the plan permits the applicable indi-
vidual to choose from any of the investment op-
tions made available under the plan to which 
such proceeds may be so directed, subject to 
such restrictions as may be provided by the 
plan limiting such choice to periodic, reasonable 
opportunities occurring no less frequently than 
on a quarterly basis. 
‘‘(5) DEFINITIONS AND RULES.—For purposes 
of this subsection—
‘‘(A) APPLICABLE
INDIVIDUAL
ACCOUNT 
PLAN.—The term ‘applicable individual account 
plan’ means any individual account plan, except 
that such term does not include an employee 
stock ownership plan (within the meaning of 
section 4975(e)(7) of the Internal Revenue 
Code of 1986) unless there are any contribu-
tions to such plan (or earnings thereon) held 
within such plan that are subject to subsection
(k)(3) or (m)(2) of section 401 of the Internal 
Revenue Code of 1986. 
‘‘(B) APPLICABLE INDIVIDUAL.—The term 
‘applicable individual’ means—
‘‘(i) any participant in the plan, and 
‘‘(ii) any beneficiary of a participant 
referred to in clause (i) who has an ac-
count under the plan with respect to which 
the beneficiary is entitled to exercise the 
rights of the participant. 
‘‘(C) ELECTIVE
DEFERRAL.—The term 
‘elective deferral’ means an employer contribu-
tion described in section 402(g)(3)(A) of the In-
ternal Revenue Code of 1986 (as in effect on 
the date of the enactment of this subsection). 
‘‘(D) EMPLOYER
SECURITY.—The term 
‘employer security’ shall have the meaning 
given such term by section 407(d)(1) of this 
Act (as in effect on the date of the enactment 
of this subsection). 
‘‘(E) 
EMPLOYEE
STOCK
OWNERSHIP 
PLAN.—The term ‘employee stock ownership 
plan’ shall have the same meaning given to 
such term by section 4975(e)(7) of the Internal