‘‘(D) TIME
AND
MANNER
OF
REPORT-
ING.—Any return, report, or statement required
under this paragraph shall be made in such
form and at such time as the Secretary shall
prescribe.’’
(2) SMART TRUSTS.—Section 6059 (relating
to actuarial reports) is amended by redesignating
subsections (c) and (d) as subsections (d) and (e),
respectively, and by inserting after subsection (b)
the following new subsection:
‘‘(c) SMART TRUSTS.—In the case of a SMART
Trust (within the meaning of section 408B), the Secretary
shall require a simplified actuarial report which contains
information similar to the information required in section
408(l)(3)(B).’’
(f) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 219(b)(5) is
amended by striking ‘‘or’’ at the end of clause (v)
and by inserting after clause (vi) the following new
clause:
‘‘(vii) any SMART trust or SMART
annuity (within the meaning of section
408B), or’’.
(2) Section 280G(b)(6) is amended by striking
‘‘or’’ at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting
‘‘, or’’ and by adding after subparagraph (D) the
following new subparagraph:
‘‘(E) a SMART annuity described in sec-
tion 408B.’’
(3) Subsections (b), (c), (m)(4)(B), and
(n)(3)(B) of section 414 are each amended by in-
serting ‘‘408B,’’ after ‘‘408(p),’’.
(4) Section 4972(d)(1)(A) is amended by strik-
ing ‘‘and’’ at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ‘‘,
and’’, and by adding after clause (iv) the following
new clause:
‘‘(v) any SMART annuity (within the
meaning of section 408B).’’
(g) REPORTING REQUIREMENTS UNDER ERISA.—
Section 101 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1021) is amended by redesignat-
ing subsection (h) as subsection (i) and by inserting after
subsection (g) the following new subsection:
‘‘(h) SMART ANNUITIES.—
‘‘(1) NO EMPLOYER REPORTS.—Except as pro-
vided in this subsection, no report shall be required
under this section by an employer maintaining a
SMART annuity under section 408B(b) of the Inter-
nal Revenue Code of 1986.
‘‘(2) SUMMARY
DESCRIPTION.—The issuer of
any SMART annuity shall provide to the employer
maintaining the annuity for each year a description
containing the following information:
‘‘(A) The name and address of the em-
ployer and the issuer.
‘‘(B) The requirements for eligibility for
participation.
‘‘(C) The benefits provided with respect to
the annuity.
‘‘(D) The procedures for, and effects of,
withdrawals (including rollovers) from the an-
nuity.’’
‘‘(3) EMPLOYEE NOTIFICATION.—The employer
shall provide each employee eligible to participate in
the SMART annuity with the description described
in paragraph (2) at the same time as the notifica-
tion required under section 408B(b)(5)(B) of the In-
ternal Revenue Code of 1986.’’
(h) CLERICAL AMENDMENT.—The table of sections
for subpart A of part I of subchapter D of chapter 1 is
amended by inserting after the item relating to section
408A the following new item:
‘‘Sec. 408B. SMART plans.’’
(i) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1998.
SEC. 5. FASTER VESTING OF EMPLOYER MATCHING CON-
TRIBUTIONS.
(a) AMENDMENT OF INTERNAL REVENUE CODE.—
Paragraph (2) of section 411(a) (relating to employer con-
tributions) is amended—
(1) by inserting ‘‘, and, if applicable, (C)’’ after
‘‘or (B)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) MATCHING CONTRIBUTIONS.—In the
case of a plan that includes an accrued benefit
derived from matching contributions (as defined
in section 401(m)(4)(A)), the plan satisfies the
requirements of this subparagraph if—
‘‘(i) if an employee who has completed
at least 3 years of service has a nonforfeit-
able right to 100 percent of the employee’s
accrued benefit derived from such match-
ing contributions, or
‘‘(ii) an employee has a nonforfeitable
right to a percentage of the employee’s ac-
crued 
benefit 
derived 
from 
employer
matching contributions (as so defined) de-
termined under the following table:
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.
For purposes of this subparagraph, matching
contributions shall be taken into account re-
gardless of whether the matching contributions
are made to the same plan as the contributions
being matched, and matching contributions to
any plan shall be taken into account if such
matching contributions are made with respect
to after-tax employee contributions and if the
employer’s limit on matching contributions with
respect to such after-tax employee contributions
is coordinated with the employer’s limit on
matching contributions with respect to con-
tributions under such section.’’.
(b) AMENDMENT OF ERISA.—Paragraph (2) of sec-
tion 203(a) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1053(a)) is amended—
(1) by inserting ‘‘, and, if applicable, (C)’’ after
‘‘or (B)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) MATCHING CONTRIBUTIONS.—In the
case of a plan that includes an accrued benefit
derived from matching contributions (as defined
in section 401(m)(4)(A) of the Internal Reve-
nue Code of 1986), the plan satisfies the re-
quirements of this subparagraph if—
‘‘(i) if an employee who has completed
at least 3 years of service has a nonforfeit-
able right to 100 percent of the employee’s
accrued benefit derived from such match-
ing contributions, or
‘‘(ii) an employee has a nonforfeitable
right to a percentage of the employee’s ac-
crued 
benefit 
derived 
from 
employer
matching contributions (as so defined) de-
termined under the following table:
The nonforfeitable
‘‘Years of service:
percentage is:
2 ...............................................................................................
3 ...............................................................................................
4 ...............................................................................................
5 ...............................................................................................
6 ...............................................................................................
100.
For purposes of this subparagraph, matching
contributions shall be taken into account re-
gardless of whether the matching contributions
are made to the same plan as the contributions
being matched, and matching contributions to
any plan shall be taken into account if such
matching contributions are made with respect
to after-tax employee contributions includible in
gross income and if the employer’s limit on
matching contributions with respect to such in-
cludible employee contributions is coordinated
with the employer’s limit on matching contribu-
tions with respect to contributions under such
section.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this
section shall apply to plan years beginning after De-
cember 31, 1998.
(2) APPLICATION TO CURRENT EMPLOYEES.—
The amendments made by this section shall not
apply to any employee who does not have at least 1
hour of service in any plan year beginning after De-
cember 31, 1998.
(3) COLLECTIVE BARGAINING AGREEMENTS.—
In the case of a plan maintained pursuant to 1 or
more collective bargaining agreements between em-
ployee representatives and 1 or more employers rati-
fied by the date of the enactment of this Act, the
amendments made by this section shall not apply to
employees covered by any such agreement in plan
years beginning before the earlier of—
(A) the later of—
(i) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof on or after such date of
enactment), or
(ii) January 1, 1999, or
(B) January 1, 2003.
SEC. 6. PENSION RIGHT TO KNOW PROPOSALS.
(a) SPOUSE’S RIGHT TO KNOW DISTRIBUTION IN-
FORMATION.—
(1) AMENDMENT
OF
INTERNAL
REVENUE
CODE.—Paragraph (3) of section 417(a) (relating to
definitions and special rules for purposes of mini-
mum survivor annuity requirements) is amended by
adding at the end the following new subparagraph:
‘‘(C) EXPLANATION TO SPOUSE.—At the
time a plan provides a participant with a writ-
ten explanation under subparagraph (A) or (B),
such plan shall provide a copy of such expla-
nation to such participant’s spouse. If the last
known address of the spouse is the same as the
last known address of the participant, the re-
quirement of the preceding sentence shall be
treated as met if the copy referred to in the
preceding sentence is included in a single mail-
ing made to such address and addressed to both
such participant and spouse.’’.
(2) AMENDMENT OF ERISA.—Paragraph (3) of
section 205(c) of Employee Retirement Income Se-
curity Act of 1974 is amended by adding at the end
the following new subparagraph:
‘‘(C) EXPLANATION TO SPOUSE.—At the
time a plan provides a participant with a writ-
ten explanation under subparagraph (A) or (B),
such plan shall provide a copy of such expla-
nation to such participant’s spouse. If the last
known address of the spouse is the same as the
last known address of the participant, the re-
quirement of the preceding sentence shall be
treated as met if the copy referred to in the
preceding sentence is included in a single mail-
ing made to such address and addressed to both
such participant and spouse.’’.
(b) EMPLOYEE’S RIGHT TO KNOW OF OPPORTUNITY
FOR ELECTIVE CONTRIBUTIONS UNDER 401(k) PLANS.—
Subparagraph (D) of section 401(k)(12) (relating to no-
tice requirements) is amended—
(1) by striking ‘‘, within a reasonable period be-
fore any year,’’ and inserting ‘‘before the 60th day
before the beginning of any year’’, and
(2) by adding at the end the following new
flush sentence:
‘‘The requirements of paragraph (11)(B)(iii)
shall apply for purposes of this subparagraph.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1998.
SEC. 7. MANDATORY 1 PERCENT EMPLOYER CONTRIBU-
TION 
REQUIRED 
UNDER 
ALTERNATIVE
METHOD OF MEETING NONDISCRIMINATION
REQUIREMENTS FOR 401(K) PLANS.
(a) IN GENERAL.—Subparagraph (B) of section
401(k)(12) (relating to alternative methods of meeting
nondiscrimination requirements) is amended to read as
follows:
‘‘(B) NONELECTIVE AND MATCHING CON-
TRIBUTIONS.—
‘‘(i) IN GENERAL.—The requirements
of this subparagraph are met if the re-
quirements of clauses (ii) and (iii) are met.
‘‘(ii) 
NONELECTIVE
CONTRIBU-
TIONS.—The requirements of this clause