(2) SAFE TRUSTS.—Section 6059 (relating to
actuarial reports) is amended by redesignating sub-
sections (c) and (d) as subsections (d) and (e), re-
spectively, and by inserting after subsection (b) the
following new subsection:
‘‘(c) SAFE TRUSTS.—In the case of a SAFE Trust
(within the meaning of section 408A), the Secretary shall
require a simplified actuarial report which contains infor-
mation similar to the information required in section
408(l)(3)(B).’’
(f) CONFORMING AMENDMENTS.—
(1) Section 280G(b)(6) of such Code is amend-
ed 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 sub-
paragraph (D) the following new subparagraph:
‘‘(E) a SAFE annuity described in section
408A.’’
(2) Subsections (b), (c), (m)(4)(B), and
(n)(3)(B) of section 414 of such Code are each
amended by inserting ‘‘408A,’’ after ‘‘408(p),’’.
(3) Section 4972(d)(1)(A) of such Code is
amended by striking ‘‘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 SAFE annuity (within the
meaning of section 408A).’’
(g) MODIFICATIONS OF ERISA.—
(1) 
EXEMPTION
FROM
INSURANCE
COV-
ERAGE.—Subsection (b) of section 4021 of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1321) is amended by striking ‘‘or’’ at the end
of paragraph (12), by striking the period at the end
of paragraph (13) and inserting ‘‘; or’’, and by add-
ing at the end the following new paragraph:
‘‘(14) which is established and maintained as
part of a SAFE trust (as defined in section 408A
of the Internal Revenue Code of 1986).’’
(2) REPORTING REQUIREMENTS.—Section 101
of such Act (29 U.S.C. 1021) is amended by redes-
ignating subsection (h) as subsection (i) and by in-
serting after subsection (g) the following new sub-
section:
‘‘(h) SAFE 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
SAFE annuity under section 408A(b) of the Inter-
nal Revenue Code of 1986.
‘‘(2) SUMMARY
DESCRIPTION.—The issuer of
any SAFE 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 SAFE annuity with the description described in
paragraph (2) at the same time as the notification
required under section 408A(b)(5)(B) of the Inter-
nal Revenue Code of 1986.’’
(h) CLERICAL AMENDMENT.—The table of sections
for subpart A of part I of subchapter D of chapter 1 of
such Code is amended by inserting after the item relating
to section 408 the following new item:
‘‘Sec. 408A. SAFE annuities and trusts.’’
(i) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1997.
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