SEC. 407. 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 IN DEFINED BENEFIT 
PLANS.— 
‘‘(i)(I) A plan described in subclause 
(ii) shall not fail to satisfy this paragraph 
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. 
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‘‘(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) 
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 
of the benefits, rights, and features 
provided to such closed class satisfy 
subparagraph (A). 
‘‘(ii)(I) A defined contribution plan 
described in subclause (II) shall not fail to 
satisfy this paragraph by reason of— 
‘‘(aa) the composition of the 
closed class of participants described 
in subclause (II), or 
‘‘(bb) the allocations, benefits, 
rights, or features provided to such 
closed class. 
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‘‘(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, 
‘‘(bb) the benefits, rights, and 
features provided to such closed class 
satisfy the requirements of subpara-
graph (A) as of the date that the class 
of participants was closed, taking into 
account only such closed class, 
‘‘(cc) 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 
‘‘(dd) 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 section 401(a)(4). 
‘‘(C) MAKE-WHOLE CONTRIBUTIONS.—For 
purposes of this paragraph, the term ‘make- 
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whole contributions’ means allocations for each 
employee in the class that are reasonably cal-
culated, in a consistent manner, to replace some 
or all of the retirement benefits that the em-
ployee would have received under the defined 
benefit plan and any other plan or arrangement 
if the employee had continued to benefit at the 
same level under such defined benefit plan and 
such other plan or arrangement. 
‘‘(D) RULES.—The Secretary may pre-
scribe rules designed to prevent abuse of the 
plan designs otherwise permitted by reason of 
subparagraph (B). Such rules shall be directed 
towards abuses under which the defined benefit 
plan was established within a specified period 
prior to the date that— 
‘‘(i) the class of participants described 
in paragraphs (1) and (2)(A) 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 paragraph (2).’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Paragraph 
(26) of section 401(a) of the Internal Revenue Code of 
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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 
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. 
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SEC. 408. 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). 
(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. 
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SEC. 409. 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-
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. 
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(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— 
(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’’. 
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(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 
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 
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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-
gard to the plan year) during which such arrange-
ment applies, give to each such employee’’. 
Æ 
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