[Congressional Record Volume 165, Number 87 (Thursday, May 23, 2019)]
[House]
[Pages H4124-H4146]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT ACT OF 2019

  Mr. NEAL. Madam Speaker, pursuant to House Resolution 389, I call up 
the bill (H.R. 1994) to amend the Internal Revenue Code of 1986 to 
encourage retirement savings, and for other purposes, and ask for its 
immediate consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 389, the 
amendment in the nature of a substitute recommended by the Committee on 
Ways and Means, modified by the amendment printed in part B of House 
Report 116-79, is adopted, and the bill, as amended, is considered 
read.
  The text of the bill, as amended, is as follows:

                               H.R. 1994

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Setting 
     Every Community Up for Retirement Enhancement Act of 2019''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title, etc.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

Sec. 101. Multiple employer plans; pooled employer plans.
Sec. 102. Increase in 10 percent cap for automatic enrollment safe 
              harbor after 1st plan year.
Sec. 103. Rules relating to election of safe harbor 401(k) status.
Sec. 104. Increase in credit limitation for small employer pension plan 
              startup costs.
Sec. 105. Small employer automatic enrollment credit.

[[Page H4125]]

Sec. 106. Certain taxable non-tuition fellowship and stipend payments 
              treated as compensation for IRA purposes.
Sec. 107. Repeal of maximum age for traditional IRA contributions.
Sec. 108. Qualified employer plans prohibited from making loans through 
              credit cards and other similar arrangements.
Sec. 109. Portability of lifetime income options.
Sec. 110. Treatment of custodial accounts on termination of section 
              403(b) plans.
Sec. 111. Clarification of retirement income account rules relating to 
              church-controlled organizations.
Sec. 112. Qualified cash or deferred arrangements must allow long-term 
              employees working more than 500 but less than 1,000 hours 
              per year to participate.
Sec. 113. Penalty-free withdrawals from retirement plans for 
              individuals in case of birth of child or adoption.
Sec. 114. Increase in age for required beginning date for mandatory 
              distributions.
Sec. 115. Special rules for minimum funding standards for community 
              newspaper plans.
Sec. 116. Treating excluded difficulty of care payments as compensation 
              for determining retirement contribution limitations.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

Sec. 201. Plan adopted by filing due date for year may be treated as in 
              effect as of close of year.
Sec. 202. Combined annual report for group of plans.
Sec. 203. Disclosure regarding lifetime income.
Sec. 204. Fiduciary safe harbor for selection of lifetime income 
              provider.
Sec. 205. Modification of nondiscrimination rules to protect older, 
              longer service participants.
Sec. 206. Modification of PBGC premiums for CSEC plans.

                       TITLE III--OTHER BENEFITS

Sec. 301. Benefits provided to volunteer firefighters and emergency 
              medical responders.
Sec. 302. Expansion of section 529 plans.

                      TITLE IV--REVENUE PROVISIONS

Sec. 401. Modification of required distribution rules for designated 
              beneficiaries.
Sec. 402. Increase in penalty for failure to file.
Sec. 403. Increased penalties for failure to file retirement plan 
              returns.
Sec. 404. Increase information sharing to administer excise taxes.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

     SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

       (a) Qualification Requirements.--
       (1) In general.--Section 413 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(e) Application of Qualification Requirements for Certain 
     Multiple Employer Plans With Pooled Plan Providers.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     a defined contribution plan to which subsection (c) applies--
       ``(A) is maintained by employers which have a common 
     interest other than having adopted the plan, or
       ``(B) in the case of a plan not described in subparagraph 
     (A), has a pooled plan provider,

     then the plan shall not be treated as failing to meet the 
     requirements under this title applicable to a plan described 
     in section 401(a) or to a plan that consists of individual 
     retirement accounts described in section 408 (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     merely because one or more employers of employees covered by 
     the plan fail to take such actions as are required of such 
     employers for the plan to meet such requirements.
       ``(2) Limitations.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     plan unless the terms of the plan provide that in the case of 
     any employer in the plan failing to take the actions 
     described in paragraph (1)--
       ``(i) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) will be 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) for each individual whose account is 
     transferred, or to any other arrangement that the Secretary 
     determines is appropriate, unless the Secretary determines it 
     is in the best interests of the employees of such employer 
     (and the beneficiaries of such employees) to retain the 
     assets in the plan, and
       ``(ii) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided by the Secretary, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(B) Failures by pooled plan providers.--If the pooled 
     plan provider of a plan described in paragraph (1)(B) does 
     not perform substantially all of the administrative duties 
     which are required of the provider under paragraph (3)(A)(i) 
     for any plan year, the Secretary may provide that the 
     determination as to whether the plan meets the requirements 
     under this title applicable to a plan described in section 
     401(a) or to a plan that consists of individual retirement 
     accounts described in section 408 (including by reason of 
     subsection (c) thereof), whichever is applicable, shall be 
     made in the same manner as would be made without regard to 
     paragraph (1).
       ``(3) Pooled plan provider.--
       ``(A) In general.--For purposes of this subsection, the 
     term `pooled plan provider' means, with respect to any plan, 
     a person who--
       ``(i) is designated by the terms of the plan as a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), as the plan 
     administrator, and as the person responsible to perform all 
     administrative duties (including conducting proper testing 
     with respect to the plan and the employees of each employer 
     in the plan) which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under the 
     Employee Retirement Income Security Act of 1974 or this title 
     to a plan described in section 401(a) or to a plan that 
     consists of individual retirement accounts described in 
     section 408 (including by reason of subsection (c) thereof), 
     whichever is applicable, and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or such person determines are necessary for the 
     plan to meet the requirements described in subclause (I), 
     including providing to such person any disclosures or other 
     information which the Secretary may require or which such 
     person otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements,

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides such other information to the 
     Secretary as the Secretary may require, before beginning 
     operations as a pooled plan provider,
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), and the 
     plan administrator, with respect to the plan, and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the plan are 
     bonded in accordance with section 412 of the Employee 
     Retirement Income Security Act of 1974.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this subsection.
       ``(C) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 shall be treated as one 
     person.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in subparagraph (A)(i), each employer in a 
     plan which has a pooled plan provider shall be treated as the 
     plan sponsor with respect to the portion of the plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(4) Guidance.--
       ``(A) In general.--The Secretary shall issue such guidance 
     as the Secretary determines appropriate to carry out this 
     subsection, including guidance--
       ``(i) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under this subsection,
       ``(ii) which describes the procedures to be taken to 
     terminate a plan which fails to meet the requirements to be a 
     plan described in paragraph (1), including the proper 
     treatment of, and actions needed to be taken by, any employer 
     in the plan and the assets and liabilities of the plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees), and
       ``(iii) identifying appropriate cases to which the rules of 
     paragraph (2)(A) will apply to employers in the plan failing 
     to take the actions described in paragraph (1).

     The Secretary shall take into account under clause (iii) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements applicable to the plan under 
     section 401(a) or 408, whichever is applicable, has continued 
     over a period of time that demonstrates a lack of commitment 
     to compliance.
       ``(B) Good faith compliance with law before guidance.--An 
     employer or pooled plan provider shall not be treated as 
     failing to meet a requirement of guidance issued by the 
     Secretary under this paragraph if, before the issuance of 
     such guidance, the employer or pooled plan provider complies 
     in good faith with a reasonable interpretation of the 
     provisions of this subsection to which such guidance relates.
       ``(5) Model plan.--The Secretary shall publish model plan 
     language which meets the requirements of this subsection and 
     of paragraphs (43) and (44) of section 3 of the Employee 
     Retirement Income Security Act of 1974 and which may be 
     adopted in order for a plan to be treated as a plan described 
     in paragraph (1)(B).''.
       (2) Conforming amendment.--Section 413(c)(2) of such Code 
     is amended by striking ``section 401(a)'' and inserting 
     ``sections 401(a) and 408(c)''.
       (3) Technical amendment.--Section 408(c) of such Code is 
     amended by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) There is a separate accounting for any interest of an 
     employee or member (or spouse of an employee or member) in a 
     Roth IRA.''.
       (b) No Common Interest Required for Pooled Employer 
     Plans.--Section 3(2) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(2)) is amended by adding 
     at the end the following:
       ``(C) A pooled employer plan shall be treated as--
       ``(i) a single employee pension benefit plan or single 
     pension plan; and

[[Page H4126]]

       ``(ii) a plan to which section 210(a) applies.''.
       (c) Pooled Employer Plan and Provider Defined.--
       (1) In general.--Section 3 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1002) is amended by 
     adding at the end the following:
       ``(43) Pooled employer plan.--
       ``(A) In general.--The term `pooled employer plan' means a 
     plan--
       ``(i) which is an individual account plan established or 
     maintained for the purpose of providing benefits to the 
     employees of 2 or more employers;
       ``(ii) which is a plan described in section 401(a) of the 
     Internal Revenue Code of 1986 which includes a trust exempt 
     from tax under section 501(a) of such Code or a plan that 
     consists of individual retirement accounts described in 
     section 408 of such Code (including by reason of subsection 
     (c) thereof); and
       ``(iii) the terms of which meet the requirements of 
     subparagraph (B).

     Such term shall not include a plan maintained by employers 
     which have a common interest other than having adopted the 
     plan.
       ``(B) Requirements for plan terms.--The requirements of 
     this subparagraph are met with respect to any plan if the 
     terms of the plan--
       ``(i) designate a pooled plan provider and provide that the 
     pooled plan provider is a named fiduciary of the plan;
       ``(ii) designate one or more trustees meeting the 
     requirements of section 408(a)(2) of the Internal Revenue 
     Code of 1986 (other than an employer in the plan) to be 
     responsible for collecting contributions to, and holding the 
     assets of, the plan and require such trustees to implement 
     written contribution collection procedures that are 
     reasonable, diligent, and systematic;
       ``(iii) provide that each employer in the plan retains 
     fiduciary responsibility for--

       ``(I) the selection and monitoring in accordance with 
     section 404(a) of the person designated as the pooled plan 
     provider and any other person who, in addition to the pooled 
     plan provider, is designated as a named fiduciary of the 
     plan; and
       ``(II) to the extent not otherwise delegated to another 
     fiduciary by the pooled plan provider and subject to the 
     provisions of section 404(c), the investment and management 
     of the portion of the plan's assets attributable to the 
     employees of the employer (or beneficiaries of such 
     employees);

       ``(iv) provide that employers in the plan, and participants 
     and beneficiaries, are not subject to unreasonable 
     restrictions, fees, or penalties with regard to ceasing 
     participation, receipt of distributions, or otherwise 
     transferring assets of the plan in accordance with section 
     208 or paragraph (44)(C)(i)(II);
       ``(v) require--

       ``(I) the pooled plan provider to provide to employers in 
     the plan any disclosures or other information which the 
     Secretary may require, including any disclosures or other 
     information to facilitate the selection or any monitoring of 
     the pooled plan provider by employers in the plan; and
       ``(II) each employer in the plan to take such actions as 
     the Secretary or the pooled plan provider determines are 
     necessary to administer the plan or for the plan to meet any 
     requirement applicable under this Act or the Internal Revenue 
     Code of 1986 to a plan described in section 401(a) of such 
     Code or to a plan that consists of individual retirement 
     accounts described in section 408 of such Code (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     including providing any disclosures or other information 
     which the Secretary may require or which the pooled plan 
     provider otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements; and

       ``(vi) provide that any disclosure or other information 
     required to be provided under clause (v) may be provided in 
     electronic form and will be designed to ensure only 
     reasonable costs are imposed on pooled plan providers and 
     employers in the plan.
       ``(C) Exceptions.--The term `pooled employer plan' does not 
     include--
       ``(i) a multiemployer plan; or
       ``(ii) a plan established before the date of the enactment 
     of the Setting Every Community Up for Retirement Enhancement 
     Act of 2019 unless the plan administrator elects that the 
     plan will be treated as a pooled employer plan and the plan 
     meets the requirements of this title applicable to a pooled 
     employer plan established on or after such date.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in paragraph (44)(A)(i), each employer in 
     a pooled employer plan shall be treated as the plan sponsor 
     with respect to the portion of the plan attributable to 
     employees of such employer (or beneficiaries of such 
     employees).
       ``(44) Pooled plan provider.--
       ``(A) In general.--The term `pooled plan provider' means a 
     person who--
       ``(i) is designated by the terms of a pooled employer plan 
     as a named fiduciary, as the plan administrator, and as the 
     person responsible for the performance of all administrative 
     duties (including conducting proper testing with respect to 
     the plan and the employees of each employer in the plan) 
     which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under this 
     Act or the Internal Revenue Code of 1986 to a plan described 
     in section 401(a) of such Code or to a plan that consists of 
     individual retirement accounts described in section 408 of 
     such Code (including by reason of subsection (c) thereof), 
     whichever is applicable; and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or pooled plan provider determines are necessary 
     for the plan to meet the requirements described in subclause 
     (I), including providing the disclosures and information 
     described in paragraph (43)(B)(v)(II);

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides to the Secretary such other 
     information as the Secretary may require, before beginning 
     operations as a pooled plan provider;
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary, and the plan administrator, with respect to the 
     pooled employer plan; and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the pooled 
     employer plan are bonded in accordance with section 412.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this paragraph and 
     paragraph (43).
       ``(C) Guidance.--The Secretary shall issue such guidance as 
     the Secretary determines appropriate to carry out this 
     paragraph and paragraph (43), including guidance--
       ``(i) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under either such paragraph; and
       ``(ii) which requires in appropriate cases that if an 
     employer in the plan fails to take the actions required under 
     subparagraph (A)(i)(II)--

       ``(I) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) are 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) of the Internal Revenue Code of 1986 for 
     each individual whose account is transferred, or to any other 
     arrangement that the Secretary determines is appropriate in 
     such guidance; and
       ``(II) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided in such guidance, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).

     The Secretary shall take into account under clause (ii) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements described in subparagraph 
     (A)(i)(II) has continued over a period of time that 
     demonstrates a lack of commitment to compliance. The 
     Secretary may waive the requirements of subclause (ii)(I) in 
     appropriate circumstances if the Secretary determines it is 
     in the best interests of the employees of the employer 
     referred to in such clause (and the beneficiaries of such 
     employees) to retain the assets in the plan with respect to 
     which the employer's failure occurred.
       ``(D) Good faith compliance with law before guidance.--An 
     employer or pooled plan provider shall not be treated as 
     failing to meet a requirement of guidance issued by the 
     Secretary under subparagraph (C) if, before the issuance of 
     such guidance, the employer or pooled plan provider complies 
     in good faith with a reasonable interpretation of the 
     provisions of this paragraph, or paragraph (43), to which 
     such guidance relates.
       ``(E) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 of the Internal Revenue Code 
     of 1986 shall be treated as one person.''.
       (2) Bonding requirements for pooled employer plans.--The 
     last sentence of section 412(a) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by 
     inserting ``or in the case of a pooled employer plan (as 
     defined in section 3(43))'' after ``section 407(d)(1))''.
       (3) Conforming and technical amendments.--Section 3 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002) is amended--
       (A) in paragraph (16)(B)--
       (i) by striking ``or'' at the end of clause (ii); and
       (ii) by striking the period at the end and inserting ``, or 
     (iv) in the case of a pooled employer plan, the pooled plan 
     provider.''; and
       (B) by striking the second paragraph (41).
       (d) Pooled Employer and Multiple Employer Plan Reporting.--
       (1) Additional information.--Section 103 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1023) is 
     amended--
       (A) in subsection (a)(1)(B), by striking ``applicable 
     subsections (d), (e), and (f)'' and inserting ``applicable 
     subsections (d), (e), (f), and (g)''; and
       (B) by amending subsection (g) to read as follows:
       ``(g) Additional Information With Respect to Pooled 
     Employer and Multiple Employer Plans.--An annual report under 
     this section for a plan year shall include--
       ``(1) with respect to any plan to which section 210(a) 
     applies (including a pooled employer plan), a list of 
     employers in the plan and a good faith estimate of the 
     percentage of total contributions made by such employers 
     during the plan year and the aggregate account balances 
     attributable to each employer in the plan (determined as the 
     sum of the account balances of the employees of such employer 
     (and the beneficiaries of such employees)); and
       ``(2) with respect to a pooled employer plan, the 
     identifying information for the person designated under the 
     terms of the plan as the pooled plan provider.''.

[[Page H4127]]

       (2) Simplified annual reports.--Section 104(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1024(a)) is amended by striking paragraph (2)(A) and 
     inserting the following:
       ``(2)(A) With respect to annual reports required to be 
     filed with the Secretary under this part, the Secretary may 
     by regulation prescribe simplified annual reports for any 
     pension plan that--
       ``(i) covers fewer than 100 participants; or
       ``(ii) is a plan described in section 210(a) that covers 
     fewer than 1,000 participants, but only if no single employer 
     in the plan has 100 or more participants covered by the 
     plan.''.
       (e) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to plan years beginning after December 31, 2020.
       (2) Rule of construction.--Nothing in the amendments made 
     by subsection (a) shall be construed as limiting the 
     authority of the Secretary of the Treasury or the Secretary's 
     delegate (determined without regard to such amendment) to 
     provide for the proper treatment of a failure to meet any 
     requirement applicable under the Internal Revenue Code of 
     1986 with respect to one employer (and its employees) in a 
     multiple employer plan.

     SEC. 102. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC ENROLLMENT 
                   SAFE HARBOR AFTER 1ST PLAN YEAR.

       (a) In General.--Section 401(k)(13)(C)(iii) of the Internal 
     Revenue Code of 1986 is amended by striking ``does not exceed 
     10 percent'' and inserting ``does not exceed 15 percent (10 
     percent during the period described in subclause (I))''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2019.

     SEC. 103. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) 
                   STATUS.

       (a) Limitation of Annual Safe Harbor Notice to Matching 
     Contribution Plans.--
       (1) In general.--Subparagraph (A) of section 401(k)(12) of 
     the Internal Revenue Code of 1986 is amended by striking ``if 
     such arrangement'' and all that follows and inserting ``if 
     such arrangement--
       ``(i) meets the contribution requirements of subparagraph 
     (B) and the notice requirements of subparagraph (D), or
       ``(ii) meets the contribution requirements of subparagraph 
     (C).''.
       (2) Automatic contribution arrangements.--Subparagraph (B) 
     of section 401(k)(13) of such Code is amended by striking 
     ``means'' and all that follows and inserting ``means a cash 
     or deferred arrangement--
       ``(i) which is described in subparagraph (D)(i)(I) and 
     meets the applicable requirements of subparagraphs (C) 
     through (E), or
       ``(ii) which is described in subparagraph (D)(i)(II) and 
     meets the applicable requirements of subparagraphs (C) and 
     (D).''.
       (b) Nonelective Contributions.--Section 401(k)(12) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (F) as subparagraph (G), and by inserting after 
     subparagraph (E) the following new subparagraph:
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (C) shall apply 
     to the arrangement for the plan year, but only if the 
     amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (B) or paragraph 
     (13)(D)(i)(I) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (C) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (c) Automatic Contribution Arrangements.--Section 
     401(k)(13) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following :
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (D)(i)(II) 
     shall apply to the arrangement for the plan year, but only if 
     the amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (D)(i)(I) or paragraph 
     (12)(B) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (D)(i)(II) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2019.

     SEC. 104. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER 
                   PENSION PLAN STARTUP COSTS.

       (a) In General.--Paragraph (1) of section 45E(b) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) for the first credit year and each of the 2 taxable 
     years immediately following the first credit year, the 
     greater of--
       ``(A) $500, or
       ``(B) the lesser of--
       ``(i) $250 for each employee of the eligible employer who 
     is not a highly compensated employee (as defined in section 
     414(q)) and who is eligible to participate in the eligible 
     employer plan maintained by the eligible employer, or
       ``(ii) $5,000, and''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2019.

     SEC. 105. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT SAVINGS 
                   OPTIONS PROVIDED BY SMALL EMPLOYERS.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible employer, the retirement auto-enrollment 
     credit determined under this section for any taxable year is 
     an amount equal to--
       ``(1) $500 for any taxable year occurring during the credit 
     period, and
       ``(2) zero for any other taxable year.
       ``(b) Credit Period.--For purposes of subsection (a)--
       ``(1) In general.--The credit period with respect to any 
     eligible employer is the 3-taxable-year period beginning with 
     the first taxable year for which the employer includes an 
     eligible automatic contribution arrangement (as defined in 
     section 414(w)(3)) in a qualified employer plan (as defined 
     in section 4972(d)) sponsored by the employer.
       ``(2) Maintenance of arrangement.--No taxable year with 
     respect to an employer shall be treated as occurring within 
     the credit period unless the arrangement described in 
     paragraph (1) is included in the plan for such year.
       ``(c) Eligible Employer.--For purposes of this section, the 
     term `eligible employer' has the meaning given such term in 
     section 408(p)(2)(C)(i).''.
       (b) Credit To Be Part of General Business Credit.--
     Subsection (b) of section 38 of the Internal Revenue Code of 
     1986 is amended by striking ``plus'' at the end of paragraph 
     (31), by striking the period at the end of paragraph (32) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(33) in the case of an eligible employer (as defined in 
     section 45T(c)), the retirement auto-enrollment credit 
     determined under section 45T(a).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 45S the following new item:

``Sec. 45T. Auto-enrollment option for retirement savings options 
              provided by small employers.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2019.

     SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND 
                   PAYMENTS TREATED AS COMPENSATION FOR IRA 
                   PURPOSES.

       (a) In General.--Paragraph (1) of section 219(f) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following: ``The term `compensation' shall include any 
     amount which is included in the individual's gross income and 
     paid to the individual to aid the individual in the pursuit 
     of graduate or postdoctoral study.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2019.

     SEC. 107. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
                   CONTRIBUTIONS.

       (a) In general.--Paragraph (1) of section 219(d) of the 
     Internal Revenue Code of 1986 is repealed.
       (b) Coordination With Qualified Charitable Distributions.--
     Add at the end of section 408(d)(8)(A) of such Code the 
     following: ``The amount of distributions not includible in 
     gross income by reason of the preceding sentence for a 
     taxable year (determined without regard to this sentence) 
     shall be reduced (but not below zero) by an amount equal to 
     the excess of--
       ``(i) the aggregate amount of deductions allowed to the 
     taxpayer under section 219 for all taxable years ending on or 
     after the date the taxpayer attains age 70\1/2\, over
       ``(ii) the aggregate amount of reductions under this 
     sentence for all taxable years preceding the current taxable 
     year.''.
       (b) Conforming Amendment.--Subsection (c) of section 408A 
     of the Internal Revenue Code of 1986 is amended by striking 
     paragraph (4) and by redesignating paragraphs (5), (6), and 
     (7) as paragraphs (4), (5), and (6), respectively.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to contributions 
     made for taxable years beginning after December 31, 2019.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall apply to distributions made for taxable years beginning 
     after December 31, 2019.

[[Page H4128]]

  


     SEC. 108. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING 
                   LOANS THROUGH CREDIT CARDS AND OTHER SIMILAR 
                   ARRANGEMENTS.

       (a) In General.--Paragraph (2) of section 72(p) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (D) as subparagraph (E) and by inserting after 
     subparagraph (C) the following new subparagraph:
       ``(D) Prohibition of loans through credit cards and other 
     similar arrangements.--Subparagraph (A) shall not apply to 
     any loan which is made through the use of any credit card or 
     any other similar arrangement.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to loans made after the date of the enactment of 
     this Act.

     SEC. 109. PORTABILITY OF LIFETIME INCOME OPTIONS.

       (a) In General.--Subsection (a) of section 401 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (37) the following new paragraph:
       ``(38) Portability of lifetime income.--
       ``(A) In general.--Except as may be otherwise provided by 
     regulations, a trust forming part of a defined contribution 
     plan shall not be treated as failing to constitute a 
     qualified trust under this section solely by reason of 
     allowing--
       ``(i) qualified distributions of a lifetime income 
     investment, or
       ``(ii) distributions of a lifetime income investment in the 
     form of a qualified plan distribution annuity contract,

     on or after the date that is 90 days prior to the date on 
     which such lifetime income investment is no longer authorized 
     to be held as an investment option under the plan.
       ``(B) Definitions.--For purposes of this subsection--
       ``(i) the term `qualified distribution' means a direct 
     trustee-to-trustee transfer described in paragraph (31)(A) to 
     an eligible retirement plan (as defined in section 
     402(c)(8)(B)),
       ``(ii) the term `lifetime income investment' means an 
     investment option which is designed to provide an employee 
     with election rights--

       ``(I) which are not uniformly available with respect to 
     other investment options under the plan, and
       ``(II) which are to a lifetime income feature available 
     through a contract or other arrangement offered under the 
     plan (or under another eligible retirement plan (as so 
     defined), if paid by means of a direct trustee-to-trustee 
     transfer described in paragraph (31)(A) to such other 
     eligible retirement plan),

       ``(iii) the term `lifetime income feature' means--

       ``(I) a feature which guarantees a minimum level of income 
     annually (or more frequently) for at least the remainder of 
     the life of the employee or the joint lives of the employee 
     and the employee's designated beneficiary, or
       ``(II) an annuity payable on behalf of the employee under 
     which payments are made in substantially equal periodic 
     payments (not less frequently than annually) over the life of 
     the employee or the joint lives of the employee and the 
     employee's designated beneficiary, and

       ``(iv) the term `qualified plan distribution annuity 
     contract' means an annuity contract purchased for a 
     participant and distributed to the participant by a plan or 
     contract described in subparagraph (B) of section 402(c)(8) 
     (without regard to clauses (i) and (ii) thereof).''.
       (b) Cash or Deferred Arrangement.--
       (1) In general.--Clause (i) of section 401(k)(2)(B) of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of subclause (IV), by striking ``and'' at the end 
     of subclause (V) and inserting ``or'', and by adding at the 
     end the following new subclause:

       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in subsection (a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the arrangement, and''.

       (2) Distribution requirement.--Subparagraph (B) of section 
     401(k)(2) of such Code, as amended by paragraph (1), is 
     amended by striking ``and'' at the end of clause (i), by 
     striking the semicolon at the end of clause (ii) and 
     inserting ``, and'', and by adding at the end the following 
     new clause:
       ``(iii) except as may be otherwise provided by regulations, 
     in the case of amounts described in clause (i)(VI), will be 
     distributed only in the form of a qualified distribution (as 
     defined in subsection (a)(38)(B)(i)) or a qualified plan 
     distribution annuity contract (as defined in subsection 
     (a)(38)(B)(iv)),''.
       (c) Section 403(b) Plans.--
       (1) Annuity contracts.--Paragraph (11) of section 403(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``or'' at the end of subparagraph (B), by striking the period 
     at the end of subparagraph (C) and inserting ``, or'', and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii))--
       ``(i) on or after the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the contract, and
       ``(ii) in the form of a qualified distribution (as defined 
     in section 401(a)(38)(B)(i)) or a qualified plan distribution 
     annuity contract (as defined in section 
     401(a)(38)(B)(iv)).''.
       (2) Custodial accounts.--Subparagraph (A) of section 
     403(b)(7) of such Code is amended by striking ``if--'' and 
     all that follows and inserting ``if the amounts are to be 
     invested in regulated investment company stock to be held in 
     that custodial account, and under the custodial account--
       ``(i) no such amounts may be paid or made available to any 
     distributee (unless such amount is a distribution to which 
     section 72(t)(2)(G) applies) before--

       ``(I) the employee dies,
       ``(II) the employee attains age 59\1/2\,
       ``(III) the employee has a severance from employment,
       ``(IV) the employee becomes disabled (within the meaning of 
     section 72(m)(7)),
       ``(V) in the case of contributions made pursuant to a 
     salary reduction agreement (within the meaning of section 
     3121(a)(5)(D)), the employee encounters financial hardship, 
     or
       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the contract, and

       ``(ii) in the case of amounts described in clause (i)(VI), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (d) Eligible Deferred Compensation Plans.--
       (1) In general.--Subparagraph (A) of section 457(d)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``or'' at the end of clause (ii), by inserting ``or'' at the 
     end of clause (iii), and by adding after clause (iii) the 
     following:
       ``(iv) except as may be otherwise provided by regulations, 
     in the case of a plan maintained by an employer described in 
     subsection (e)(1)(A), with respect to amounts invested in a 
     lifetime income investment (as defined in section 
     401(a)(38)(B)(ii)), the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the plan,''.
       (2) Distribution requirement.--Paragraph (1) of section 
     457(d) of such Code is amended by striking ``and'' at the end 
     of subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by inserting 
     after subparagraph (C) the following new subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     in the case of amounts described in subparagraph (A)(iv), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2019.

     SEC. 110. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF 
                   SECTION 403(B) PLANS.

       Not later than six months after the date of enactment of 
     this Act, the Secretary of the Treasury shall issue guidance 
     to provide that, if an employer terminates the plan under 
     which amounts are contributed to a custodial account under 
     subparagraph (A) of section 403(b)(7), the plan administrator 
     or custodian may distribute an individual custodial account 
     in kind to a participant or beneficiary of the plan and the 
     distributed custodial account shall be maintained by the 
     custodian on a tax-deferred basis as a section 403(b)(7) 
     custodial account, similar to the treatment of fully-paid 
     individual annuity contracts under Revenue Ruling 2011-7, 
     until amounts are actually paid to the participant or 
     beneficiary. The guidance shall provide further (i) that the 
     section 403(b)(7) status of the distributed custodial account 
     is generally maintained if the custodial account thereafter 
     adheres to the requirements of section 403(b) that are in 
     effect at the time of the distribution of the account and 
     (ii) that a custodial account would not be considered 
     distributed to the participant or beneficiary if the employer 
     has any material retained rights under the account (but the 
     employer would not be treated as retaining material rights 
     simply because the custodial account was originally opened 
     under a group contract). Such guidance shall be retroactively 
     effective for taxable years beginning after December 31, 
     2008.

     SEC. 111. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES 
                   RELATING TO CHURCH-CONTROLLED ORGANIZATIONS.

       (a) In General.--Subparagraph (B) of section 403(b)(9) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``(including an employee described in section 414(e)(3)(B))'' 
     after ``employee described in paragraph (1)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning before, on, or after the date 
     of the enactment of this Act.

     SEC. 112. QUALIFIED CASH OR DEFERRED ARRANGEMENTS MUST ALLOW 
                   LONG-TERM EMPLOYEES WORKING MORE THAN 500 BUT 
                   LESS THAN 1,000 HOURS PER YEAR TO PARTICIPATE.

       (a) Participation Requirement.--
       (1) In general.--Section 401(k)(2)(D) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(D) which does not require, as a condition of 
     participation in the arrangement, that an employee complete a 
     period of service with the employer (or employers) 
     maintaining the plan extending beyond the close of the 
     earlier of--
       ``(i) the period permitted under section 410(a)(1) 
     (determined without regard to subparagraph (B)(i) thereof), 
     or
       ``(ii) subject to the provisions of paragraph (15), the 
     first period of 3 consecutive 12-month periods during each of 
     which the employee has at least 500 hours of service.''.
       (2) Special rules.--Section 401(k) of such Code is amended 
     by adding at the end the following new paragraph:
       ``(15) Special rules for participation requirement for 
     long-term, part-time workers.--For purposes of paragraph 
     (2)(D)(ii)--

[[Page H4129]]

       ``(A) Age requirement must be met.--Paragraph (2)(D)(ii) 
     shall not apply to an employee unless the employee has met 
     the requirement of section 410(a)(1)(A)(i) by the close of 
     the last of the 12-month periods described in such paragraph.
       ``(B) Nondiscrimination and top-heavy rules not to apply.--
       ``(i) Nondiscrimination rules.--In the case of employees 
     who are eligible to participate in the arrangement solely by 
     reason of paragraph (2)(D)(ii)--

       ``(I) notwithstanding subsection (a)(4), an employer shall 
     not be required to make nonelective or matching contributions 
     on behalf of such employees even if such contributions are 
     made on behalf of other employees eligible to participate in 
     the arrangement, and
       ``(II) an employer may elect to exclude such employees from 
     the application of subsection (a)(4), paragraphs (3), (12), 
     and (13), subsection (m)(2), and section 410(b).

       ``(ii) Top-heavy rules.--An employer may elect to exclude 
     all employees who are eligible to participate in a plan 
     maintained by the employer solely by reason of paragraph 
     (2)(D)(ii) from the application of the vesting and benefit 
     requirements under subsections (b) and (c) of section 416.
       ``(iii) Vesting.--For purposes of determining whether an 
     employee described in clause (i) has a nonforfeitable right 
     to employer contributions (other than contributions described 
     in paragraph (3)(D)(i)) under the arrangement, each 12-month 
     period for which the employee has at least 500 hours of 
     service shall be treated as a year of service and section 
     411(a)(6) shall be applied by substituting `at least 500 
     hours of service' for `more than 500 hours of service' in 
     subparagraph (A) thereof.
       ``(iv) Employees who become full-time employees.--This 
     subparagraph (other than clause (iii)) shall cease to apply 
     to any employee as of the first plan year beginning after the 
     plan year in which the employee meets the requirements of 
     section 410(a)(1)(A)(ii) without regard to paragraph 
     (2)(D)(ii).
       ``(C) Exception for employees under collectively bargained 
     plans, etc.--Paragraph (2)(D)(ii) shall not apply to 
     employees described in section 410(b)(3).
       ``(D) Special rules.--
       ``(i) Time of participation.--The rules of section 
     410(a)(4) shall apply to an employee eligible to participate 
     in an arrangement solely by reason of paragraph (2)(D)(ii).
       ``(ii) 12-month periods.--12-month periods shall be 
     determined in the same manner as under the last sentence of 
     section 410(a)(3)(A).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2020, 
     except that, for purposes of section 401(k)(2)(D)(ii) of the 
     Internal Revenue Code of 1986 (as added by such amendments), 
     12-month periods beginning before January 1, 2021, shall not 
     be taken into account.

     SEC. 113. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   INDIVIDUALS IN CASE OF BIRTH OF CHILD OR 
                   ADOPTION.

       (a) In General.--Section 72(t)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(H) Distributions from retirement plans in case of birth 
     of child or adoption.--
       ``(i) In general.--Any qualified birth or adoption 
     distribution.
       ``(ii) Limitation.--The aggregate amount which may be 
     treated as qualified birth or adoption distributions by any 
     individual with respect to any birth or adoption shall not 
     exceed $5,000.
       ``(iii) Qualified birth or adoption distribution.--For 
     purposes of this subparagraph--

       ``(I) In general.--The term `qualified birth or adoption 
     distribution' means any distribution from an applicable 
     eligible retirement plan to an individual if made during the 
     1-year period beginning on the date on which a child of the 
     individual is born or on which the legal adoption by the 
     individual of an eligible adoptee is finalized.
       ``(II) Eligible adoptee.--The term `eligible adoptee' means 
     any individual (other than a child of the taxpayer's spouse) 
     who has not attained age 18 or is physically or mentally 
     incapable of self-support.

       ``(iv) Treatment of plan distributions.--

       ``(I) In general.--If a distribution to an individual would 
     (without regard to clause (ii)) be a qualified birth or 
     adoption distribution, a plan shall not be treated as failing 
     to meet any requirement of this title merely because the plan 
     treats the distribution as a qualified birth or adoption 
     distribution, unless the aggregate amount of such 
     distributions from all plans maintained by the employer (and 
     any member of any controlled group which includes the 
     employer) to such individual exceeds $5,000.
       ``(II) Controlled group.--For purposes of subclause (I), 
     the term `controlled group' means any group treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414.

       ``(v) Amount distributed may be repaid.--

       ``(I) In general.--Any individual who receives a qualified 
     birth or adoption distribution may make one or more 
     contributions in an aggregate amount not to exceed the amount 
     of such distribution to an applicable eligible retirement 
     plan of which such individual is a beneficiary and to which a 
     rollover contribution of such distribution could be made 
     under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
     457(e)(16), as the case may be.
       ``(II) Limitation on contributions to applicable eligible 
     retirement plans other than iras.--The aggregate amount of 
     contributions made by an individual under subclause (I) to 
     any applicable eligible retirement plan which is not an 
     individual retirement plan shall not exceed the aggregate 
     amount of qualified birth or adoption distributions which are 
     made from such plan to such individual. Subclause (I) shall 
     not apply to contributions to any applicable eligible 
     retirement plan which is not an individual retirement plan 
     unless the individual is eligible to make contributions 
     (other than those described in subclause (I)) to such 
     applicable eligible retirement plan.
       ``(III) Treatment of repayments of distributions from 
     applicable eligible retirement plans other than IRAs.--If a 
     contribution is made under subclause (I) with respect to a 
     qualified birth or adoption distribution from an applicable 
     eligible retirement plan other than an individual retirement 
     plan, then the taxpayer shall, to the extent of the amount of 
     the contribution, be treated as having received such 
     distribution in an eligible rollover distribution (as defined 
     in section 402(c)(4)) and as having transferred the amount to 
     the applicable eligible retirement plan in a direct trustee 
     to trustee transfer within 60 days of the distribution.
       ``(IV) Treatment of repayments for distributions from 
     iras.--If a contribution is made under subclause (I) with 
     respect to a qualified birth or adoption distribution from an 
     individual retirement plan, then, to the extent of the amount 
     of the contribution, such distribution shall be treated as a 
     distribution described in section 408(d)(3) and as having 
     been transferred to the applicable eligible retirement plan 
     in a direct trustee to trustee transfer within 60 days of the 
     distribution.

       ``(vi) Definition and special rules.--For purposes of this 
     subparagraph--

       ``(I) Applicable eligible retirement plan.--The term 
     `applicable eligible retirement plan' means an eligible 
     retirement plan (as defined in section 402(c)(8)(B)) other 
     than a defined benefit plan.
       ``(II) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405, a qualified birth or adoption 
     distribution shall not be treated as an eligible rollover 
     distribution.
       ``(III) Taxpayer must include tin.--A distribution shall 
     not be treated as a qualified birth or adoption distribution 
     with respect to any child or eligible adoptee unless the 
     taxpayer includes the name, age, and TIN of such child or 
     eligible adoptee on the taxpayer's return of tax for the 
     taxable year.
       ``(IV) Distributions treated as meeting plan distribution 
     requirements.--Any qualified birth or adoption distribution 
     shall be treated as meeting the requirements of sections 
     401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A).''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2019.

     SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR 
                   MANDATORY DISTRIBUTIONS.

       (a) In General.--Section 401(a)(9)(C)(i)(I) of the Internal 
     Revenue Code of 1986 is amended by striking ``age 70\1/2\'' 
     and inserting ``age 72''.
       (b) Spouse Beneficiaries; Special Rule for Owners.--
     Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) 
     of such Code are each amended by striking ``age 70\1/2\'' and 
     inserting ``age 72''.
       (c) Conforming Amendments.--
       (1) The last sentence of section 408(b) of such Code is 
     amended by striking ``age 70\1/2\'' and inserting ``age 72''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions required to be made after 
     December 31, 2019, with respect to individuals who attain age 
     70\1/2\ after such date.

     SEC. 115. SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR 
                   COMMUNITY NEWSPAPER PLANS.

       (a) Amendment to Internal Revenue Code of 1986.--Section 
     430 of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new subsection:
       ``(m) Special Rules for Community Newspaper Plans.--
       ``(1) In general.--The plan sponsor of a community 
     newspaper plan under which no participant has had the 
     participant's accrued benefit increased (whether because of 
     service or compensation) after December 31, 2017, may elect 
     to have the alternative standards described in paragraph (3) 
     apply to such plan, and any plan sponsored by any member of 
     the same controlled group.
       ``(2) Election.--An election under paragraph (1) shall be 
     made at such time and in such manner as prescribed by the 
     Secretary. Such election, once made with respect to a plan 
     year, shall apply to all subsequent plan years unless revoked 
     with the consent of the Secretary.
       ``(3) Alternative minimum funding standards.--The 
     alternative standards described in this paragraph are the 
     following:
       ``(A) Interest rates.--
       ``(i) In general.--Notwithstanding subsection (h)(2)(C) and 
     except as provided in clause (ii), the first, second, and 
     third segment rates in effect for any month for purposes of 
     this section shall be 8 percent.
       ``(ii) New benefit accruals.--Notwithstanding subsection 
     (h)(2), for purposes of determining the funding target and 
     normal cost of a plan for any plan year, the present value of 
     any benefits accrued or earned under the plan for a plan year 
     with respect to which an election under paragraph (1) is in 
     effect shall be determined on the basis of the U.S. Treasury 
     obligation yield curve for the day that is the valuation date 
     of such plan for such plan year.
       ``(iii) U.S. treasury obligation yield curve.--For purposes 
     of this subsection, the term `U.S. Treasury obligation yield 
     curve' means, with respect to any day, a yield curve which 
     shall be prescribed by the Secretary for such day on 
     interest-bearing obligations of the United States.
       ``(B) Shortfall amortization base.--
       ``(i) Previous shortfall amortization bases.--The shortfall 
     amortization bases determined under subsection (c)(3) for all 
     plan years

[[Page H4130]]

     preceding the first plan year to which the election under 
     paragraph (1) applies (and all shortfall amortization 
     installments determined with respect to such bases) shall be 
     reduced to zero under rules similar to the rules of 
     subsection (c)(6).
       ``(ii) New shortfall amortization base.--Notwithstanding 
     subsection (c)(3), the shortfall amortization base for the 
     first plan year to which the election under paragraph (1) 
     applies shall be the funding shortfall of such plan for such 
     plan year (determined using the interest rates as modified 
     under subparagraph (A)).
       ``(C) Determination of shortfall amortization 
     installments.--
       ``(i) 30-year period.--Subparagraphs (A) and (B) of 
     subsection (c)(2) shall be applied by substituting `30-plan-
     year' for `7-plan-year' each place it appears.
       ``(ii) No special election.--The election under 
     subparagraph (D) of subsection (c)(2) shall not apply to any 
     plan year to which the election under paragraph (1) applies.
       ``(D) Exemption from at-risk treatment.--Subsection (i) 
     shall not apply.
       ``(4) Community newspaper plan.--For purposes of this 
     subsection--
       ``(A) In general.--The term `community newspaper plan' 
     means a plan to which this section applies maintained by an 
     employer which, as of December 31, 2017--
       ``(i) publishes and distributes daily, either 
     electronically or in printed form, 1 or more community 
     newspapers in a single State,
       ``(ii) is not a company the stock of which is publicly 
     traded (on a stock exchange or in an over-the-counter 
     market), and is not controlled, directly or indirectly, by 
     such a company,
       ``(iii) is controlled, directly or indirectly--

       ``(I) by 1 or more persons residing primarily in the State 
     in which the community newspaper is published,
       ``(II) for not less than 30 years by individuals who are 
     members of the same family,
       ``(III) by a trust created or organized in the State in 
     which the community newspaper is published, the sole trustees 
     of which are persons described in subclause (I) or (II),
       ``(IV) by an entity which is described in section 501(c)(3) 
     and exempt from taxation under section 501(a), which is 
     organized and operated in the State in which the community 
     newspaper is published, and the primary purpose of which is 
     to benefit communities in such State, or
       ``(V) by a combination of persons described in subclause 
     (I), (III), or (IV), and

       ``(iv) does not control, directly or indirectly, any 
     newspaper in any other State.
       ``(B) Community newspaper.--The term `community newspaper' 
     means a newspaper which primarily serves a metropolitan 
     statistical area, as determined by the Office of Management 
     and Budget, with a population of not less than 100,000.
       ``(C) Control.--A person shall be treated as controlled by 
     another person if such other person possesses, directly or 
     indirectly, the power to direct or cause the direction and 
     management of such person (including the power to elect a 
     majority of the members of the board of directors of such 
     person) through the ownership of voting securities.
       ``(5) Controlled group.--For purposes of this subsection, 
     the term `controlled group' means all persons treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414 as of the date of the enactment of this 
     subsection.''.
       (b) Amendment to Employee Retirement Income Security Act of 
     1974.--Section 303 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1083) is amended by adding at the end 
     the following new subsection:
       ``(m) Special Rules for Community Newspaper Plans.--
       ``(1) In general.--The plan sponsor of a community 
     newspaper plan under which no participant has had the 
     participant's accrued benefit increased (whether because of 
     service or compensation) after December 31, 2017, may elect 
     to have the alternative standards described in paragraph (3) 
     apply to such plan, and any plan sponsored by any member of 
     the same controlled group.
       ``(2) Election.--An election under paragraph (1) shall be 
     made at such time and in such manner as prescribed by the 
     Secretary of the Treasury. Such election, once made with 
     respect to a plan year, shall apply to all subsequent plan 
     years unless revoked with the consent of the Secretary of the 
     Treasury.
       ``(3) Alternative minimum funding standards.--The 
     alternative standards described in this paragraph are the 
     following:
       ``(A) Interest rates.--
       ``(i) In general.--Notwithstanding subsection (h)(2)(C) and 
     except as provided in clause (ii), the first, second, and 
     third segment rates in effect for any month for purposes of 
     this section shall be 8 percent.
       ``(ii) New benefit accruals.--Notwithstanding subsection 
     (h)(2), for purposes of determining the funding target and 
     normal cost of a plan for any plan year, the present value of 
     any benefits accrued or earned under the plan for a plan year 
     with respect to which an election under paragraph (1) is in 
     effect shall be determined on the basis of the U.S. Treasury 
     obligation yield curve for the day that is the valuation date 
     of such plan for such plan year.
       ``(iii) U.S. treasury obligation yield curve.--For purposes 
     of this subsection, the term `U.S. Treasury obligation yield 
     curve' means, with respect to any day, a yield curve which 
     shall be prescribed by the Secretary of the Treasury for such 
     day on interest-bearing obligations of the United States.
       ``(B) Shortfall amortization base.--
       ``(i) Previous shortfall amortization bases.--The shortfall 
     amortization bases determined under subsection (c)(3) for all 
     plan years preceding the first plan year to which the 
     election under paragraph (1) applies (and all shortfall 
     amortization installments determined with respect to such 
     bases) shall be reduced to zero under rules similar to the 
     rules of subsection (c)(6).
       ``(ii) New shortfall amortization base.--Notwithstanding 
     subsection (c)(3), the shortfall amortization base for the 
     first plan year to which the election under paragraph (1) 
     applies shall be the funding shortfall of such plan for such 
     plan year (determined using the interest rates as modified 
     under subparagraph (A)).
       ``(C) Determination of shortfall amortization 
     installments.--
       ``(i) 30-year period.--Subparagraphs (A) and (B) of 
     subsection (c)(2) shall be applied by substituting `30-plan-
     year' for `7-plan-year' each place it appears.
       ``(ii) No special election.--The election under 
     subparagraph (D) of subsection (c)(2) shall not apply to any 
     plan year to which the election under paragraph (1) applies.
       ``(D) Exemption from at-risk treatment.--Subsection (i) 
     shall not apply.
       ``(4) Community newspaper plan.--For purposes of this 
     subsection--
       ``(A) In general.--The term `community newspaper plan' 
     means a plan to which this section applies maintained by an 
     employer which, as of December 31, 2017--
       ``(i) publishes and distributes daily, either 
     electronically or in printed form--

       ``(I) a community newspaper, or
       ``(II) 1 or more community newspapers in the same State,

       ``(ii) is not a company the stock of which is publicly 
     traded (on a stock exchange or in an over-the-counter 
     market), and is not controlled, directly or indirectly, by 
     such a company,
       ``(iii) is controlled, directly or indirectly--

       ``(I) by 1 or more persons residing primarily in the State 
     in which the community newspaper is published,
       ``(II) for not less than 30 years by individuals who are 
     members of the same family,
       ``(III) by a trust created or organized in the State in 
     which the community newspaper is published, the sole trustees 
     of which are persons described in subclause (I) or (II),
       ``(IV) by an entity which is described in section 501(c)(3) 
     of the Internal Revenue Code of 1986 and exempt from taxation 
     under section 501(a) of such Code, which is organized and 
     operated in the State in which the community newspaper is 
     published, and the primary purpose of which is to benefit 
     communities in such State, or
       ``(V) by a combination of persons described in subclause 
     (I), (III), or (IV), and

       ``(iv) does not control, directly or indirectly, any 
     newspaper in any other State.
       ``(B) Community newspaper.--The term `community newspaper' 
     means a newspaper which primarily serves a metropolitan 
     statistical area, as determined by the Office of Management 
     and Budget, with a population of not less than 100,000.
       ``(C) Control.--A person shall be treated as controlled by 
     another person if such other person possesses, directly or 
     indirectly, the power to direct or cause the direction and 
     management of such person (including the power to elect a 
     majority of the members of the board of directors of such 
     person) through the ownership of voting securities.
       ``(5) Controlled group.--For purposes of this subsection, 
     the term `controlled group' means all persons treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414 of the Internal Revenue Code of 1986 as of the 
     date of the enactment of this subsection.
       ``(6) Effect on premium rate calculation.--Notwithstanding 
     any other provision of law or any regulation issued by the 
     Pension Benefit Guaranty Corporation, in the case of a plan 
     for which an election is made to apply the alternative 
     standards described in paragraph (3), the additional premium 
     under section 4006(a)(3)(E) shall be determined as if such 
     election had not been made.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years ending after December 31, 2017.

     SEC. 116. TREATING EXCLUDED DIFFICULTY OF CARE PAYMENTS AS 
                   COMPENSATION FOR DETERMINING RETIREMENT 
                   CONTRIBUTION LIMITATIONS.

       (a) Individual Retirement Accounts.--
       (1) In general.--Section 408(o) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(5) Special rule for difficulty of care payments excluded 
     from gross income.--In the case of an individual who for a 
     taxable year excludes from gross income under section 131 a 
     qualified foster care payment which is a difficulty of care 
     payment, if--
       ``(A) the deductible amount in effect for the taxable year 
     under subsection (b), exceeds
       ``(B) the amount of compensation includible in the 
     individual's gross income for the taxable year,

     the individual may elect to increase the nondeductible limit 
     under paragraph (2) for the taxable year by an amount equal 
     to the lesser of such excess or the amount so excluded.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to contributions after the date of the enactment 
     of this Act.
       (b) Defined Contribution Plans.--
       (1) In general.--Section 415(c) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(8) Special rule for difficulty of care payments excluded 
     from gross income.--
       ``(A) In general.--For purposes of paragraph (1)(B), in the 
     case of an individual who for a taxable year excludes from 
     gross income under section 131 a qualified foster care 
     payment which is a difficulty of care payment, the 
     participant's compensation, or earned income, as the case may 
     be, shall be increased by the amount so excluded.

[[Page H4131]]

       ``(B) Contributions allocable to difficulty of care 
     payments treated as after-tax.--Any contribution by the 
     participant which is allowable due to such increase--
       ``(i) shall be treated for purposes of this title as 
     investment in the contract, and
       ``(ii) shall not cause a plan (and any arrangement which is 
     part of such plan) to be treated as failing to meet any 
     requirements of this chapter solely by reason of allowing any 
     such contributions.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to plan years beginning after December 31, 2015.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

     SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE 
                   TREATED AS IN EFFECT AS OF CLOSE OF YEAR.

       (a) In General.--Subsection (b) of section 401 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``Retroactive Changes in Plan.--A stock 
     bonus'' and inserting ``Plan Amendments.--
       ``(1) Certain retroactive changes in plan.--A stock 
     bonus''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Adoption of plan.--If an employer adopts a stock 
     bonus, pension, profit-sharing, or annuity plan after the 
     close of a taxable year but before the time prescribed by law 
     for filing the return of the employer for the taxable year 
     (including extensions thereof), the employer may elect to 
     treat the plan as having been adopted as of the last day of 
     the taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plans adopted for taxable years beginning 
     after December 31, 2019.

     SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF PLANS.

       (a) In General.--The Secretary of the Treasury and the 
     Secretary of Labor shall, in cooperation, modify the returns 
     required under section 6058 of the Internal Revenue Code of 
     1986 and the reports required by section 104 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1024) so 
     that all members of a group of plans described in subsection 
     (c) may file a single aggregated annual return or report 
     satisfying the requirements of both such sections.
       (b) Administrative Requirements.--In developing the 
     consolidated return or report under subsection (a), the 
     Secretary of the Treasury and the Secretary of Labor may 
     require such return or report to include any information 
     regarding each plan in the group as such Secretaries 
     determine is necessary or appropriate for the enforcement and 
     administration of the Internal Revenue Code of 1986 and the 
     Employee Retirement Income Security Act of 1974 and shall 
     require such information as will enable a participant in a 
     plan to identify any aggregated return or report filed with 
     respect to the plan.
       (c) Plans Described.--A group of plans is described in this 
     subsection if all plans in the group--
       (1) are individual account plans or defined contribution 
     plans (as defined in section 3(34) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1002(34)) or in 
     section 414(i) of the Internal Revenue Code of 1986);
       (2) have--
       (A) the same trustee (as described in section 403(a) of 
     such Act (29 U.S.C. 1103(a)));
       (B) the same one or more named fiduciaries (as described in 
     section 402(a) of such Act (29 U.S.C. 1102(a)));
       (C) the same administrator (as defined in section 3(16)(A) 
     of such Act (29 U.S.C. 1002(16)(A))) and plan administrator 
     (as defined in section 414(g) of the Internal Revenue Code of 
     1986); and
       (D) plan years beginning on the same date; and
       (3) provide the same investments or investment options to 
     participants and beneficiaries.

     A plan not subject to title I of the Employee Retirement 
     Income Security Act of 1974 shall be treated as meeting the 
     requirements of paragraph (2) as part of a group of plans if 
     the same person that performs each of the functions described 
     in such paragraph, as applicable, for all other plans in such 
     group performs each of such functions for such plan.
       (d) Clarification Relating to Electronic Filing of Returns 
     for Deferred Compensation Plans.--
       (1) In general.--Section 6011(e) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(6) Application of numerical limitation to returns 
     relating to deferred compensation plans.--For purposes of 
     applying the numerical limitation under paragraph (2)(A) to 
     any return required under section 6058, information regarding 
     each plan for which information is provided on such return 
     shall be treated as a separate return.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to returns required to be filed with respect to 
     plan years beginning after December 31, 2019.
       (e) Effective Date.--The modification required by 
     subsection (a) shall be implemented not later than January 1, 
     2022, and shall apply to returns and reports for plan years 
     beginning after December 31, 2021.

     SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME.

       (a) In General.--Subparagraph (B) of section 105(a)(2) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1025(a)(2)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``diversification.'' and 
     inserting ``diversification, and''; and
       (3) by inserting at the end the following:
       ``(iii) the lifetime income disclosure described in 
     subparagraph (D)(i).

     In the case of pension benefit statements described in clause 
     (i) of paragraph (1)(A), a lifetime income disclosure under 
     clause (iii) of this subparagraph shall be required to be 
     included in only one pension benefit statement during any one 
     12-month period.''.
       (b) Lifetime Income.--Paragraph (2) of section 105(a) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1025(a)) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Lifetime income disclosure.--
       ``(i) In general.--

       ``(I) Disclosure.--A lifetime income disclosure shall set 
     forth the lifetime income stream equivalent of the total 
     benefits accrued with respect to the participant or 
     beneficiary.
       ``(II) Lifetime income stream equivalent of the total 
     benefits accrued.--For purposes of this subparagraph, the 
     term `lifetime income stream equivalent of the total benefits 
     accrued' means the amount of monthly payments the participant 
     or beneficiary would receive if the total accrued benefits of 
     such participant or beneficiary were used to provide lifetime 
     income streams described in subclause (III), based on 
     assumptions specified in rules prescribed by the Secretary.
       ``(III) Lifetime income streams.--The lifetime income 
     streams described in this subclause are a qualified joint and 
     survivor annuity (as defined in section 205(d)), based on 
     assumptions specified in rules prescribed by the Secretary, 
     including the assumption that the participant or beneficiary 
     has a spouse of equal age, and a single life annuity. Such 
     lifetime income streams may have a term certain or other 
     features to the extent permitted under rules prescribed by 
     the Secretary.

       ``(ii) Model disclosure.--Not later than 1 year after the 
     date of the enactment of the Setting Every Community Up for 
     Retirement Enhancement Act of 2019, the Secretary shall issue 
     a model lifetime income disclosure, written in a manner so as 
     to be understood by the average plan participant, which--

       ``(I) explains that the lifetime income stream equivalent 
     is only provided as an illustration;
       ``(II) explains that the actual payments under the lifetime 
     income stream described in clause (i)(III) which may be 
     purchased with the total benefits accrued will depend on 
     numerous factors and may vary substantially from the lifetime 
     income stream equivalent in the disclosures;
       ``(III) explains the assumptions upon which the lifetime 
     income stream equivalent was determined; and
       ``(IV) provides such other similar explanations as the 
     Secretary considers appropriate.

       ``(iii) Assumptions and rules.--Not later than 1 year after 
     the date of the enactment of the Setting Every Community Up 
     for Retirement Enhancement Act of 2019, the Secretary shall--

       ``(I) prescribe assumptions which administrators of 
     individual account plans may use in converting total accrued 
     benefits into lifetime income stream equivalents for purposes 
     of this subparagraph; and
       ``(II) issue interim final rules under clause (i).

     In prescribing assumptions under subclause (I), the Secretary 
     may prescribe a single set of specific assumptions (in which 
     case the Secretary may issue tables or factors which 
     facilitate such conversions), or ranges of permissible 
     assumptions. To the extent that an accrued benefit is or may 
     be invested in a lifetime income stream described in clause 
     (i)(III), the assumptions prescribed under subclause (I) 
     shall, to the extent appropriate, permit administrators of 
     individual account plans to use the amounts payable under 
     such lifetime income stream as a lifetime income stream 
     equivalent.
       ``(iv) Limitation on liability.--No plan fiduciary, plan 
     sponsor, or other person shall have any liability under this 
     title solely by reason of the provision of lifetime income 
     stream equivalents which are derived in accordance with the 
     assumptions and rules described in clause (iii) and which 
     include the explanations contained in the model lifetime 
     income disclosure described in clause (ii). This clause shall 
     apply without regard to whether the provision of such 
     lifetime income stream equivalent is required by subparagraph 
     (B)(iii).
       ``(v) Effective date.--The requirement in subparagraph 
     (B)(iii) shall apply to pension benefit statements furnished 
     more than 12 months after the latest of the issuance by the 
     Secretary of--

       ``(I) interim final rules under clause (i);
       ``(II) the model disclosure under clause (ii); or
       ``(III) the assumptions under clause (iii).''.

     SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME 
                   INCOME PROVIDER.

       Section 404 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1104) is amended by adding at the end the 
     following:
       ``(e) Safe Harbor for Annuity Selection.--
       ``(1) In general.--With respect to the selection of an 
     insurer for a guaranteed retirement income contract, the 
     requirements of subsection (a)(1)(B) will be deemed to be 
     satisfied if a fiduciary--
       ``(A) engages in an objective, thorough, and analytical 
     search for the purpose of identifying insurers from which to 
     purchase such contracts;
       ``(B) with respect to each insurer identified under 
     subparagraph (A)--
       ``(i) considers the financial capability of such insurer to 
     satisfy its obligations under the guaranteed retirement 
     income contract; and
       ``(ii) considers the cost (including fees and commissions) 
     of the guaranteed retirement income contract offered by the 
     insurer in relation to the benefits and product features of 
     the contract and administrative services to be provided under 
     such contract; and
       ``(C) on the basis of such consideration, concludes that--

[[Page H4132]]

       ``(i) at the time of the selection, the insurer is 
     financially capable of satisfying its obligations under the 
     guaranteed retirement income contract; and
       ``(ii) the relative cost of the selected guaranteed 
     retirement income contract as described in subparagraph 
     (B)(ii) is reasonable.
       ``(2) Financial capability of the insurer.--A fiduciary 
     will be deemed to satisfy the requirements of paragraphs 
     (1)(B)(i) and (1)(C)(i) if--
       ``(A) the fiduciary obtains written representations from 
     the insurer that--
       ``(i) the insurer is licensed to offer guaranteed 
     retirement income contracts;
       ``(ii) the insurer, at the time of selection and for each 
     of the immediately preceding 7 plan years--

       ``(I) operates under a certificate of authority from the 
     insurance commissioner of its domiciliary State which has not 
     been revoked or suspended;
       ``(II) has filed audited financial statements in accordance 
     with the laws of its domiciliary State under applicable 
     statutory accounting principles;
       ``(III) maintains (and has maintained) reserves which 
     satisfies all the statutory requirements of all States where 
     the insurer does business; and
       ``(IV) is not operating under an order of supervision, 
     rehabilitation, or liquidation;

       ``(iii) the insurer undergoes, at least every 5 years, a 
     financial examination (within the meaning of the law of its 
     domiciliary State) by the insurance commissioner of the 
     domiciliary State (or representative, designee, or other 
     party approved by such commissioner); and
       ``(iv) the insurer will notify the fiduciary of any change 
     in circumstances occurring after the provision of the 
     representations in clauses (i), (ii), and (iii) which would 
     preclude the insurer from making such representations at the 
     time of issuance of the guaranteed retirement income 
     contract; and
       ``(B) after receiving such representations and as of the 
     time of selection, the fiduciary has not received any notice 
     described in subparagraph (A)(iv) and is in possession of no 
     other information which would cause the fiduciary to question 
     the representations provided.
       ``(3) No requirement to select lowest cost.--Nothing in 
     this subsection shall be construed to require a fiduciary to 
     select the lowest cost contract. A fiduciary may consider the 
     value of a contract, including features and benefits of the 
     contract and attributes of the insurer (including, without 
     limitation, the insurer's financial strength) in conjunction 
     with the cost of the contract.
       ``(4) Time of selection.--
       ``(A) In general.--For purposes of this subsection, the 
     time of selection is--
       ``(i) the time that the insurer and the contract are 
     selected for distribution of benefits to a specific 
     participant or beneficiary; or
       ``(ii) if the fiduciary periodically reviews the continuing 
     appropriateness of the conclusion described in paragraph 
     (1)(C) with respect to a selected insurer, taking into 
     account the considerations described in such paragraph, the 
     time that the insurer and the contract are selected to 
     provide benefits at future dates to participants or 
     beneficiaries under the plan.

     Nothing in the preceding sentence shall be construed to 
     require the fiduciary to review the appropriateness of a 
     selection after the purchase of a contract for a participant 
     or beneficiary.
       ``(B) Periodic review.--A fiduciary will be deemed to have 
     conducted the periodic review described in subparagraph 
     (A)(ii) if the fiduciary obtains the written representations 
     described in clauses (i), (ii), and (iii) of paragraph (2)(A) 
     from the insurer on an annual basis, unless the fiduciary 
     receives any notice described in paragraph (2)(A)(iv) or 
     otherwise becomes aware of facts that would cause the 
     fiduciary to question such representations.
       ``(5) Limited liability.--A fiduciary which satisfies the 
     requirements of this subsection shall not be liable following 
     the distribution of any benefit, or the investment by or on 
     behalf of a participant or beneficiary pursuant to the 
     selected guaranteed retirement income contract, for any 
     losses that may result to the participant or beneficiary due 
     to an insurer's inability to satisfy its financial 
     obligations under the terms of such contract.
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Insurer.--The term `insurer' means an insurance 
     company, insurance service, or insurance organization, 
     including affiliates of such companies.
       ``(B) Guaranteed retirement income contract.--The term 
     `guaranteed retirement income contract' means an annuity 
     contract for a fixed term or a contract (or provision or 
     feature thereof) which provides guaranteed benefits annually 
     (or more frequently) for at least the remainder of the life 
     of the participant or the joint lives of the participant and 
     the participant's designated beneficiary as part of an 
     individual account plan.''.

     SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT 
                   OLDER, LONGER SERVICE PARTICIPANTS.

       (a) In General.--Section 401 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by redesignating subsection (o) as subsection (p); and
       (2) by inserting after subsection (n) the following new 
     subsection:
       ``(o) Special Rules for Applying Nondiscrimination Rules to 
     Protect Older, Longer Service and Grandfathered Participants 
     .--
       ``(1) Testing of defined benefit plans with closed classes 
     of participants.--
       ``(A) Benefits, rights, or features provided to closed 
     classes.--A defined benefit plan which provides benefits, 
     rights, or features to a closed class of participants shall 
     not fail to satisfy the requirements of subsection (a)(4) by 
     reason of the composition of such closed class or the 
     benefits, rights, or features provided to such closed class, 
     if--
       ``(i) for the plan year as of which the class closes and 
     the 2 succeeding plan years, such benefits, rights, and 
     features satisfy the requirements of subsection (a)(4) 
     (without regard to this subparagraph but taking into account 
     the rules of subparagraph (I)),
       ``(ii) after the date as of which the class was closed, any 
     plan amendment which modifies the closed class or the 
     benefits, rights, and features provided to such closed class 
     does not discriminate significantly in favor of highly 
     compensated employees, and
       ``(iii) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).
       ``(B) Aggregate testing with defined contribution plans 
     permitted on a benefits basis.--
       ``(i) In general.--For purposes of determining compliance 
     with subsection (a)(4) and section 410(b), a defined benefit 
     plan described in clause (iii) may be aggregated and tested 
     on a benefits basis with 1 or more defined contribution 
     plans, including with the portion of 1 or more defined 
     contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--For 
     purposes of clause (i), if a defined benefit plan is 
     aggregated with a portion of a defined contribution plan 
     providing matching contributions--

       ``(I) such defined benefit plan must also be aggregated 
     with any portion of such defined contribution plan which 
     provides elective deferrals described in subparagraph (A) or 
     (C) of section 402(g)(3), and
       ``(II) such matching contributions shall be treated in the 
     same manner as nonelective contributions, including for 
     purposes of applying the rules of subsection (l).

       ``(iii) Plans described.--A defined benefit plan is 
     described in this clause if--

       ``(I) the plan provides benefits to a closed class of 
     participants,
       ``(II) for the plan year as of which the class closes and 
     the 2 succeeding plan years, the plan satisfies the 
     requirements of section 410(b) and subsection (a)(4) (without 
     regard to this subparagraph but taking into account the rules 
     of subparagraph (I)),
       ``(III) after the date as of which the class was closed, 
     any plan amendment which modifies the closed class or the 
     benefits provided to such closed class does not discriminate 
     significantly in favor of highly compensated employees, and
       ``(IV) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).

       ``(C) Plans described.--A plan is described in this 
     subparagraph if, taking into account any predecessor plan--
       ``(i) such plan has been in effect for at least 5 years as 
     of the date the class is closed, and
       ``(ii) during the 5-year period preceding the date the 
     class is closed, there has not been a substantial increase in 
     the coverage or value of the benefits, rights, or features 
     described in subparagraph (A) or in the coverage or benefits 
     under the plan described in subparagraph (B)(iii) (whichever 
     is applicable).
       ``(D) Determination of substantial increase for benefits, 
     rights, and features.--In applying subparagraph (C)(ii) for 
     purposes of subparagraph (A)(iii), a plan shall be treated as 
     having had a substantial increase in coverage or value of the 
     benefits, rights, or features described in subparagraph (A) 
     during the applicable 5-year period only if, during such 
     period--
       ``(i) the number of participants covered by such benefits, 
     rights, or features on the date such period ends is more than 
     50 percent greater than the number of such participants on 
     the first day of the plan year in which such period began, or
       ``(ii) such benefits, rights, and features have been 
     modified by 1 or more plan amendments in such a way that, as 
     of the date the class is closed, the value of such benefits, 
     rights, and features to the closed class as a whole is 
     substantially greater than the value as of the first day of 
     such 5-year period, solely as a result of such amendments.
       ``(E) Determination of substantial increase for aggregate 
     testing on benefits basis.--In applying subparagraph (C)(ii) 
     for purposes of subparagraph (B)(iii)(IV), a plan shall be 
     treated as having had a substantial increase in coverage or 
     benefits during the applicable 5-year period only if, during 
     such period--
       ``(i) the number of participants benefitting under the plan 
     on the date such period ends is more than 50 percent greater 
     than the number of such participants on the first day of the 
     plan year in which such period began, or
       ``(ii) the average benefit provided to such participants on 
     the date such period ends is more than 50 percent greater 
     than the average benefit provided on the first day of the 
     plan year in which such period began.
       ``(F) Certain employees disregarded.--For purposes of 
     subparagraphs (D) and (E), any increase in coverage or value 
     or in coverage or benefits, whichever is applicable, which is 
     attributable to such coverage and value or coverage and 
     benefits provided to employees--
       ``(i) who became participants as a result of a merger, 
     acquisition, or similar event which occurred during the 7-
     year period preceding the date the class is closed, or
       ``(ii) who became participants by reason of a merger of the 
     plan with another plan which had

[[Page H4133]]

     been in effect for at least 5 years as of the date of the 
     merger,

     shall be disregarded, except that clause (ii) shall apply for 
     purposes of subparagraph (D) only if, under the merger, the 
     benefits, rights, or features under 1 plan are conformed to 
     the benefits, rights, or features of the other plan 
     prospectively.
       ``(G) Rules relating to average benefit.--For purposes of 
     subparagraph (E)--
       ``(i) the average benefit provided to participants under 
     the plan will be treated as having remained the same between 
     the 2 dates described in subparagraph (E)(ii) if the benefit 
     formula applicable to such participants has not changed 
     between such dates, and
       ``(ii) if the benefit formula applicable to 1 or more 
     participants under the plan has changed between such 2 dates, 
     then the average benefit under the plan shall be considered 
     to have increased by more than 50 percent only if--

       ``(I) the total amount determined under section 
     430(b)(1)(A)(i) for all participants benefitting under the 
     plan for the plan year in which the 5-year period described 
     in subparagraph (E) ends, exceeds
       ``(II) the total amount determined under section 
     430(b)(1)(A)(i) for all such participants for such plan year, 
     by using the benefit formula in effect for each such 
     participant for the first plan year in such 5-year period,

     by more than 50 percent. In the case of a CSEC plan (as 
     defined in section 414(y)), the normal cost of the plan (as 
     determined under section 433(j)(1)(B)) shall be used in lieu 
     of the amount determined under section 430(b)(1)(A)(i).
       ``(H) Treatment as single plan.--For purposes of 
     subparagraphs (E) and (G), a plan described in section 413(c) 
     shall be treated as a single plan rather than as separate 
     plans maintained by each employer in the plan.
       ``(I) Special rules.--For purposes of subparagraphs (A)(i) 
     and (B)(iii)(II), the following rules shall apply:
       ``(i) In applying section 410(b)(6)(C), the closing of the 
     class of participants shall not be treated as a significant 
     change in coverage under section 410(b)(6)(C)(i)(II).
       ``(ii) 2 or more plans shall not fail to be eligible to be 
     aggregated and treated as a single plan solely by reason of 
     having different plan years.
       ``(iii) Changes in the employee population shall be 
     disregarded to the extent attributable to individuals who 
     become employees or cease to be employees, after the date the 
     class is closed, by reason of a merger, acquisition, 
     divestiture, or similar event.
       ``(iv) Aggregation and all other testing methodologies 
     otherwise applicable under subsection (a)(4) and section 
     410(b) may be taken into account.

     The rule of clause (ii) shall also apply for purposes of 
     determining whether plans to which subparagraph (B)(i) 
     applies may be aggregated and treated as 1 plan for purposes 
     of determining whether such plans meet the requirements of 
     subsection (a)(4) and section 410(b).
       ``(J) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined benefit plan described in subparagraph 
     (A) or (B)(iii) is spun off to another employer and the spun-
     off plan continues to satisfy the requirements of--
       ``(i) subparagraph (A)(i) or (B)(iii)(II), whichever is 
     applicable, if the original plan was still within the 3-year 
     period described in such subparagraph at the time of the spin 
     off, and
       ``(ii) subparagraph (A)(ii) or (B)(iii)(III), whichever is 
     applicable,
     the treatment under subparagraph (A) or (B) of the spun-off 
     plan shall continue with respect to such other employer.
       ``(2) Testing of defined contribution plans.--
       ``(A) Testing on a benefits basis.--A defined contribution 
     plan shall be permitted to be tested on a benefits basis if--
       ``(i) such defined contribution plan provides make-whole 
     contributions to a closed class of participants whose 
     accruals under a defined benefit plan have been reduced or 
     eliminated,
       ``(ii) for the plan year of the defined contribution plan 
     as of which the class eligible to receive such make-whole 
     contributions closes and the 2 succeeding plan years, such 
     closed class of participants satisfies the requirements of 
     section 410(b)(2)(A)(i) (determined by applying the rules of 
     paragraph (1)(I)),
       ``(iii) after the date as of which the class was closed, 
     any plan amendment to the defined contribution plan which 
     modifies the closed class or the allocations, benefits, 
     rights, and features provided to such closed class does not 
     discriminate significantly in favor of highly compensated 
     employees, and
       ``(iv) the class was closed before April 5, 2017, or the 
     defined benefit plan under clause (i) is described in 
     paragraph (1)(C) (as applied for purposes of paragraph 
     (1)(B)(iii)(IV)).
       ``(B) Aggregation with plans including matching 
     contributions.--
       ``(i) In general.--With respect to 1 or more defined 
     contribution plans described in subparagraph (A), for 
     purposes of determining compliance with subsection (a)(4) and 
     section 410(b), the portion of such plans which provides 
     make-whole contributions or other nonelective contributions 
     may be aggregated and tested on a benefits basis with the 
     portion of 1 or more other defined contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--Rules 
     similar to the rules of paragraph (1)(B)(ii) shall apply for 
     purposes of clause (i).
       ``(C) Special rules for testing defined contribution plan 
     features providing matching contributions to certain older, 
     longer service participants.--In the case of a defined 
     contribution plan which provides benefits, rights, or 
     features to a closed class of participants whose accruals 
     under a defined benefit plan have been reduced or eliminated, 
     the plan shall not fail to satisfy the requirements of 
     subsection (a)(4) solely by reason of the composition of the 
     closed class or the benefits, rights, or features provided to 
     such closed class if the defined contribution plan and 
     defined benefit plan otherwise meet the requirements of 
     subparagraph (A) but for the fact that the make-whole 
     contributions under the defined contribution plan are made in 
     whole or in part through matching contributions.
       ``(D) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined contribution plan described in 
     subparagraph (A) or (C) is spun off to another employer, the 
     treatment under subparagraph (A) or (C) of the spun-off plan 
     shall continue with respect to the other employer if such 
     plan continues to comply with the requirements of clauses 
     (ii) (if the original plan was still within the 3-year period 
     described in such clause at the time of the spin off) and 
     (iii) of subparagraph (A), as determined for purposes of 
     subparagraph (A) or (C), whichever is applicable.
       ``(3) Definitions and special rule.--For purposes of this 
     subsection--
       ``(A) Make-whole contributions.--Except as otherwise 
     provided in paragraph (2)(C), the term `make-whole 
     contributions' means nonelective allocations for each 
     employee in the class which are reasonably calculated, in a 
     consistent manner, to replace some or all of the retirement 
     benefits which the employee would have received under the 
     defined benefit plan and any other plan or qualified cash or 
     deferred arrangement under subsection (k)(2) if no change had 
     been made to such defined benefit plan and such other plan or 
     arrangement. For purposes of the preceding sentence, 
     consistency shall not be required with respect to employees 
     who were subject to different benefit formulas under the 
     defined benefit plan.
       ``(B) References to closed class of participants.--
     References to a closed class of participants and similar 
     references to a closed class shall include arrangements under 
     which 1 or more classes of participants are closed, except 
     that 1 or more classes of participants closed on different 
     dates shall not be aggregated for purposes of determining the 
     date any such class was closed.
       ``(C) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term in 
     section 414(q).''.
       (b) Participation Requirements.--Paragraph (26) of section 
     401(a) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new subparagraph:
       ``(I) Protected participants.--
       ``(i) In general.--A plan shall be deemed to satisfy the 
     requirements of subparagraph (A) if--

       ``(I) the plan is amended--

       ``(aa) to cease all benefit accruals, or
       ``(bb) to provide future benefit accruals only to a closed 
     class of participants,

       ``(II) the plan satisfies subparagraph (A) (without regard 
     to this subparagraph) as of the effective date of the 
     amendment, and
       ``(III) the amendment was adopted before April 5, 2017, or 
     the plan is described in clause (ii).

       ``(ii) Plans described.--A plan is described in this clause 
     if the plan would be described in subsection (o)(1)(C), as 
     applied for purposes of subsection (o)(1)(B)(iii)(IV) and by 
     treating the effective date of the amendment as the date the 
     class was closed for purposes of subsection (o)(1)(C).
       ``(iii) Special rules.--For purposes of clause (i)(II), in 
     applying section 410(b)(6)(C), the amendments described in 
     clause (i) shall not be treated as a significant change in 
     coverage under section 410(b)(6)(C)(i)(II).
       ``(iv) Spun-off plans.--For purposes of this subparagraph, 
     if a portion of a plan described in clause (i) is spun off to 
     another employer, the treatment under clause (i) of the spun-
     off plan shall continue with respect to the other 
     employer.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act, without regard to whether any 
     plan modifications referred to in such amendments are adopted 
     or effective before, on, or after such date of enactment.
       (2) Special rules.--
       (A) Election of earlier application.--At the election of 
     the plan sponsor, the amendments made by this section shall 
     apply to plan years beginning after December 31, 2013.
       (B) Closed classes of participants.--For purposes of 
     paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of 
     section 401(o) of the Internal Revenue Code of 1986 (as added 
     by this section), a closed class of participants shall be 
     treated as being closed before April 5, 2017, if the plan 
     sponsor's intention to create such closed class is reflected 
     in formal written documents and communicated to participants 
     before such date.
       (C) Certain post-enactment plan amendments.--A plan shall 
     not be treated as failing to be eligible for the application 
     of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
     such Code (as added by this section) to such plan solely 
     because in the case of--
       (i) such section 401(o)(1)(A), the plan was amended before 
     the date of the enactment of this Act to eliminate 1 or more 
     benefits, rights, or features, and is further amended after 
     such date of enactment to provide such previously eliminated 
     benefits, rights, or features to a closed class of 
     participants, or

[[Page H4134]]

       (ii) such section 401(o)(1)(B)(iii) or section 401(a)(26), 
     the plan was amended before the date of the enactment of this 
     Act to cease all benefit accruals, and is further amended 
     after such date of enactment to provide benefit accruals to a 
     closed class of participants.

     Any such section shall only apply if the plan otherwise meets 
     the requirements of such section and in applying such 
     section, the date the class of participants is closed shall 
     be the effective date of the later amendment.

     SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC PLANS.

       (a) Flat Rate Premium.--Subparagraph (A) of section 
     4006(a)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1306(a)(3)) is amended--
       (1) in clause (i), by striking ``plan,'' and inserting 
     ``plan other than a CSEC plan (as defined in section 
     210(f)(1))'';
       (2) in clause (v), by striking ``or'' at the end;
       (3) in clause (vi), by striking the period at the end and 
     inserting ``, or''; and
       (4) by adding at the end the following new clause:
       ``(vii) in the case of a CSEC plan (as defined in section 
     210(f)(1)), for plan years beginning after December 31, 2018, 
     for each individual who is a participant in such plan during 
     the plan year an amount equal to the sum of--

       ``(I) the additional premium (if any) determined under 
     subparagraph (E), and
       ``(II) $19.''.

       (b) Variable Rate Premium.--
       (1) Unfunded vested benefits.--
       (A) In general.--Subparagraph (E) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended by adding at the end the 
     following new clause:
       ``(v) For purposes of clause (ii), in the case of a CSEC 
     plan (as defined in section 210(f)(1)), the term `unfunded 
     vested benefits' means, for plan years beginning after 
     December 31, 2018, the excess (if any) of--
       ``(I) the funding liability of the plan as determined under 
     section 306(j)(5)(C) for the plan year by only taking into 
     account vested benefits, over
       ``(II) the fair market value of plan assets for the plan 
     year which are held by the plan on the valuation date.''.
       (B) Conforming amendment.--Clause (iii) of section 
     4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is 
     amended by striking ``For purposes'' and inserting ``Except 
     as provided in clause (v), for purposes''.
       (2) Applicable dollar amount.--
       (A) In general.--Paragraph (8) of section 4006(a) of such 
     Act (29 U.S.C. 1306(a)) is amended by adding at the end the 
     following new subparagraph:
       ``(E) CSEC plans.--In the case of a CSEC plan (as defined 
     in section 210(f)(1)), the applicable dollar amount shall be 
     $9.''.
       (B) Conforming amendment.--Subparagraph (A) of section 
     4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) is amended by 
     striking ``(B) and (C)'' and inserting ``(B), (C), and (E)''.

                       TITLE III--OTHER BENEFITS

     SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS AND 
                   EMERGENCY MEDICAL RESPONDERS.

       (a) Increase in Dollar Limitation on Qualified Payments.--
     Subparagraph (B) of section 139B(c)(2) of the Internal 
     Revenue Code of 1986 is amended by striking ``$30'' and 
     inserting ``$50''.
       (b) Extension.--Section 139B(d) of the Internal Revenue 
     Code of 1986 is amended by striking ``beginning after 
     December 31, 2010.'' and inserting ``beginning--
       ``(1) after December 31, 2010, and before January 1, 2020, 
     or
       ``(2) after December 31, 2020.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2019.

     SEC. 302. EXPANSION OF SECTION 529 PLANS.

       (a) Distributions for Certain Expenses Associated With 
     Registered Apprenticeship Programs.--Section 529(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(8) Treatment of certain expenses associated with 
     registered apprenticeship programs.--Any reference in this 
     subsection to the term `qualified higher education expense' 
     shall include a reference to expenses for fees, books, 
     supplies, and equipment required for the participation of a 
     designated beneficiary in an apprenticeship program 
     registered and certified with the Secretary of Labor under 
     section 1 of the National Apprenticeship Act (29 U.S.C. 
     50).''
       (c) Distributions for Qualified Education Loan 
     Repayments.--
       (1) In general.--Section 529(c) of such Code, as amended by 
     subsection (a), is amended by adding at the end the following 
     new paragraph:
       ``(9) Treatment of qualified education loan repayments.--
       ``(A) In general.--Any reference in this subsection to the 
     term `qualified higher education expense' shall include a 
     reference to amounts paid as principal or interest on any 
     qualified education loan (as defined in section 221(d)) of 
     the designated beneficiary or a sibling of the designated 
     beneficiary.
       ``(B) Limitation.--The amount of distributions treated as a 
     qualified higher education expense under this paragraph with 
     respect to the loans of any individual shall not exceed 
     $10,000 (reduced by the amount of distributions so treated 
     for all prior taxable years).
       ``(C) Special rules for siblings of the designated 
     beneficiary.--
       ``(i) Separate accounting.--For purposes of subparagraph 
     (B) and subsection (d), amounts treated as a qualified higher 
     education expense with respect to the loans of a sibling of 
     the designated beneficiary shall be taken into account with 
     respect to such sibling and not with respect to such 
     designated beneficiary.
       ``(ii) Sibling defined.--For purposes of this paragraph, 
     the term `sibling' means an individual who bears a 
     relationship to the designated beneficiary which is described 
     in section 152(d)(2)(B).''.
       (2) Coordination with deduction for student loan 
     interest.--Section 221(e)(1) of such Code is amended by 
     adding at the end the following: ``The deduction otherwise 
     allowable under subsection (a) (prior to the application of 
     subsection (b)) to the taxpayer for any taxable year shall be 
     reduced (but not below zero) by so much of the distributions 
     treated as a qualified higher education expense under section 
     529(c)(9) with respect to loans of the taxpayer as would be 
     includible in gross income under section 529(c)(3)(A) for 
     such taxable year but for such treatment.''.
       (e) Effective Dates.--The amendments made by this section 
     shall apply to distributions made after December 31, 2018.

                      TITLE IV--REVENUE PROVISIONS

     SEC. 401. MODIFICATION OF REQUIRED DISTRIBUTION RULES FOR 
                   DESIGNATED BENEFICIARIES.

       (a) Modification of Rules Where Employee Dies Before Entire 
     Distribution.--
       (1) In general.--Section 401(a)(9) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph
       ``(H) Special rules for certain defined contribution 
     plans.--In the case of a defined contribution plan, if an 
     employee dies before the distribution of the employee's 
     entire interest--
       ``(i) In general.--Except in the case of a beneficiary who 
     is not a designated beneficiary, subparagraph (B)(ii)--

       ``(I) shall be applied by substituting `10 years' for `5 
     years', and
       ``(II) shall apply whether or not distributions of the 
     employee's interests have begun in accordance with 
     subparagraph (A).

       ``(ii) Exception only for eligible designated 
     beneficiaries.--Subparagraph (B)(iii) shall apply only in the 
     case of an eligible designated beneficiary.
       ``(iii) Rules upon death of eligible designated 
     beneficiary.--If an eligible designated beneficiary dies 
     before the portion of the employee's interest to which this 
     subparagraph applies is entirely distributed, the exception 
     under clause (iii) shall not apply to any beneficiary of such 
     eligible designated beneficiary and the remainder of such 
     portion shall be distributed within 10 years after the death 
     of such eligible designated beneficiary.
       ``(iv) Application to certain eligible retirement plans.--
     For purposes of applying the provisions of this subparagraph 
     in determining amounts required to be distributed pursuant to 
     this paragraph, all eligible retirement plans (as defined in 
     section 402(c)(8)(B), other than a defined benefit plan 
     described in clause (iv) or (v) thereof or a qualified trust 
     which is a part of a defined benefit plan) shall be treated 
     as a defined contribution plan.''.
       (2) Definition of eligible designated beneficiary.--Section 
     401(a)(9)(E) of such Code is amended to read as follows:
       ``(E) Definitions and rules relating to designated 
     beneficiary.--For purposes of this paragraph--
       ``(i) Designated beneficiary.--The term `designated 
     beneficiary' means any individual designated as a beneficiary 
     by the employee.
       ``(ii) Eligible designated beneficiary.--The term `eligible 
     designated beneficiary' means, with respect to any employee, 
     any designated beneficiary who is--

       ``(I) the surviving spouse of the employee,
       ``(II) subject to clause (iii), a child of the employee who 
     has not reached majority (within the meaning of subparagraph 
     (F)),
       ``(III) disabled (within the meaning of section 72(m)(7)),
       ``(IV) a chronically ill individual (within the meaning of 
     section 7702B(c)(2), except that the requirements of 
     subparagraph (A)(i) thereof shall only be treated as met if 
     there is a certification that, as of such date, the period of 
     inability described in such subparagraph with respect to the 
     individual is an indefinite one which is reasonably expected 
     to be lengthy in nature), or
       ``(V) an individual not described in any of the preceding 
     subclauses who is not more than 10 years younger than the 
     employee.

       ``(iii) Special rule for children.--Subject to subparagraph 
     (F), an individual described in clause (ii)(II) shall cease 
     to be an eligible designated beneficiary as of the date the 
     individual reaches majority and any remainder of the portion 
     of the individual's interest to which subparagraph (H)(ii) 
     applies shall be distributed within 10 years after such date.
       ``(iv) Time for determination of eligible designated 
     beneficiary.--The determination of whether a designated 
     beneficiary is an eligible designated beneficiary shall be 
     made as of the date of death of the employee.''.
       (3) Effective dates.--
       (A) In general.--Except as provided in this paragraph and 
     paragraphs (4) and (5), the amendments made by this 
     subsection shall apply to distributions with respect to 
     employees who die after December 31, 2019.
       (B) Collective bargaining exception.--In the case of a plan 
     maintained pursuant to 1 or more collective bargaining 
     agreements between employee representatives and 1 or more 
     employers ratified before the date of enactment of this Act, 
     the amendments made by this subsection shall apply to 
     distributions with respect to employees who die in calendar 
     years beginning after the earlier of--
       (i) the later of--

       (I) the date on which the last of such collective 
     bargaining agreements terminates (determined without regard 
     to any extension thereof agreed to on or after the date of 
     the enactment of this Act), or

[[Page H4135]]

       (II) December 31, 2019, or

       (ii) December 31, 2021.

     For purposes of clause (i)(I), any plan amendment made 
     pursuant to a collective bargaining agreement relating to the 
     plan which amends the plan solely to conform to any 
     requirement added by this section shall not be treated as a 
     termination of such collective bargaining agreement.
       (C) Governmental plans.--In the case of a governmental plan 
     (as defined in section 414(d) of the Internal Revenue Code of 
     1986), subparagraph (A) shall be applied by substituting 
     ``December 31, 2021'' for ``December 31, 2019''.
       (4) Exception for certain existing annuity contracts.--
       (A) In general.--The amendments made by this subsection 
     shall not apply to a qualified annuity which is a binding 
     annuity contract in effect on the date of enactment of this 
     Act and at all times thereafter.
       (B) Qualified annuity.--For purposes of this paragraph, the 
     term ``qualified annuity'' means, with respect to an 
     employee, an annuity--
       (i) which is a commercial annuity (as defined in section 
     3405(e)(6) of the Internal Revenue Code of 1986);
       (ii) under which the annuity payments are made over the 
     life of the employee or over the joint lives of such employee 
     and a designated beneficiary (or over a period not extending 
     beyond the life expectancy of such employee or the joint life 
     expectancy of such employee and a designated beneficiary) in 
     accordance with the regulations described in section 
     401(a)(9)(A)(ii) of such Code (as in effect before such 
     amendments) and which meets the other requirements of section 
     401(a)(9) of such Code (as so in effect) with respect to such 
     payments; and
       (iii) with respect to which--

       (I) annuity payments to the employee have begun before the 
     date of enactment of this Act, and the employee has made an 
     irrevocable election before such date as to the method and 
     amount of the annuity payments to the employee or any 
     designated beneficiaries; or
       (II) if subclause (I) does not apply, the employee has made 
     an irrevocable election before the date of enactment of this 
     Act as to the method and amount of the annuity payments to 
     the employee or any designated beneficiaries.

       (5) Exception for certain beneficiaries.--
       (A) In general.--If an employee dies before the effective 
     date, then, in applying the amendments made by this 
     subsection to such employee's designated beneficiary who dies 
     after such date--
       (i) such amendments shall apply to any beneficiary of such 
     designated beneficiary; and
       (ii) the designated beneficiary shall be treated as an 
     eligible designated beneficiary for purposes of applying 
     section 401(a)(9)(H)(ii) of the Internal Revenue Code of 1986 
     (as in effect after such amendments).
       (B) Effective date.--For purposes of this paragraph, the 
     term ``effective date'' means the first day of the first 
     calendar year to which the amendments made by this subsection 
     apply to a plan with respect to employees dying on or after 
     such date.
       (b) Provisions Relating to Plan Amendments.--
       (1) In general.--If this subsection applies to any plan 
     amendment--
       (A) such plan shall be treated as being operated in 
     accordance with the terms of the plan during the period 
     described in paragraph (2)(B)(i); and
       (B) except as provided by the Secretary of the Treasury, 
     such plan shall not fail to meet the requirements of section 
     411(d)(6) of the Internal Revenue Code of 1986 and section 
     204(g) of the Employee Retirement Income Security Act of 1974 
     by reason of such amendment.
       (2) Amendments to which subsection applies.--
       (A) In general.--This subsection shall apply to any 
     amendment to any plan or which is made--
       (i) pursuant to any amendment made by this section or 
     pursuant to any regulation issued by the Secretary of the 
     Treasury under this section or such amendments; and
       (ii) on or before the last day of the first plan year 
     beginning after December 31, 2021, or such later date as the 
     Secretary of the Treasury may prescribe.

     In the case of a governmental or collectively bargained plan 
     to which subparagraph (B) or (C) of subsection (a)(4) 
     applies, clause (ii) shall be applied by substituting the 
     date which is 2 years after the date otherwise applied under 
     such clause.
       (B) Conditions.--This subsection shall not apply to any 
     amendment unless--
       (i) during the period--

       (I) beginning on the date the legislative or regulatory 
     amendment described in paragraph (1)(A) takes effect (or in 
     the case of a plan amendment not required by such legislative 
     or regulatory amendment, the effective date specified by the 
     plan); and
       (II) ending on the date described in subparagraph (A)(ii) 
     (or, if earlier, the date the plan amendment is adopted),

     the plan is operated as if such plan amendment were in 
     effect; and
       (ii) such plan amendment applies retroactively for such 
     period.

     SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE.

       (a) In General.--The second sentence of subsection (a) of 
     section 6651 of the Internal Revenue Code of 1986 is amended 
     by striking ``$205'' and inserting ``$400''.
       (b) Inflation Adjustment.--Section 6651(j)(1) of such Code 
     is amended by striking ``$205'' and inserting ``$400''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to returns the due date for which (including 
     extensions) is after December 31, 2019.

     SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT 
                   PLAN RETURNS.

       (a) In General.--Subsection (e) of section 6652 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``$25'' and inserting ``$250''; and
       (2) by striking ``$15,000'' and inserting ``$150,000''.
       (b) Annual Registration Statement and Notification of 
     Changes.--Subsection (d) of section 6652 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``$1'' both places it appears in paragraphs 
     (1) and (2) and inserting ``$10'';
       (2) by striking ``$5,000'' in paragraph (1) and inserting 
     ``$50,000''; and
       (3) by striking ``$1,000'' in paragraph (2) and inserting 
     ``$10,000''.
       (c) Failure To Provide Notice.--Subsection (h) of section 
     6652 of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``$10'' and inserting ``$100''; and
       (2) by striking ``$5,000'' and inserting ``$50,000''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to returns, statements, and notifications 
     required to be filed, and notices required to be provided, 
     after December 31, 2019.

     SEC. 404. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE 
                   TAXES.

       (a) In General.--Section 6103(o) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(3) Taxes imposed by section 4481.--Returns and return 
     information with respect to taxes imposed by section 4481 
     shall be open to inspection by or disclosure to officers and 
     employees of United States Customs and Border Protection of 
     the Department of Homeland Security whose official duties 
     require such inspection or disclosure for purposes of 
     administering such section.''.
       (b) Conforming Amendments.--Paragraph (4) of section 
     6103(p) of the Internal Revenue Code of 1986 is amended by 
     striking ``or (o)(1)(A)'' each place it appears and inserting 
     ``, (o)(1)(A), or (o)(3)''.

                TITLE V--TAX RELIEF FOR CERTAIN CHILDREN

     SEC. 501. MODIFICATION OF RULES RELATING TO THE TAXATION OF 
                   UNEARNED INCOME OF CERTAIN CHILDREN.

       (a) In General.--Section 1(j) of the Internal Revenue Code 
     of 1986 is amended by striking paragraph (4).
       (b) Coordination With Alternative Minimum Tax.--Section 
     55(d)(4)(A) of the Internal Revenue Code of 1986 is amended 
     by striking ``and'' at the end of clause (i)(II), by striking 
     the period at the end of clause (ii)(III) and inserting ``, 
     and'', and by adding at the end the following new clause:
       ``(iii) subsection (j) of section 59 shall not apply.''.
       (c) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by subsection (a) shall apply 
     to taxable years beginning after December 31, 2018.
       (2) Coordination with alternative minimum tax.--The 
     amendment made by subsection (b) shall apply to taxable years 
     beginning after December 31, 2017.
       (3) Elective retroactive application.--In the case of a 
     taxpayer who elects the application of this paragraph (at 
     such time and in such manner as the Secretary of the Treasury 
     (or the Secretary's designee) may provide), the amendment 
     made by subsection (a) shall apply to taxable years beginning 
     after December 31, 2017.

  The SPEAKER pro tempore. The bill, as amended, shall be debatable for 
1 hour equally divided and controlled by the chair and ranking minority 
member of the Committee on Ways and Means.
  The gentleman from Massachusetts (Mr. Neal) and the gentleman from 
Texas (Mr. Brady) each will control 30 minutes.
  The Chair recognizes the gentleman from Massachusetts.


                             General Leave

  Mr. NEAL. Madam Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
to insert extraneous material on H.R. 1994.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in support of H.R. 1994, the Setting Every 
Community Up for Retirement Enhancement Act, or the SECURE Act. This is 
the most substantive promotion of retirement savings in the last 15 
years, and we all should be pleased that we are part of it this 
morning.
  One of my priorities since becoming chairman of the Ways and Means 
Committee has been helping American workers of all ages prepare for a 
financially secure retirement, so I am particularly pleased to be 
bringing this legislation to the floor this morning.
  I also am very proud of the fact that I was able to collaborate with 
Ranking

[[Page H4136]]

Member Kevin Brady and our Republican colleagues in drafting this 
legislation. Both Republicans and Democrats have wins in this bill, and 
I would like to thank Mr. Brady this morning for all of his hard work 
in helping me to write this legislation.
  Unfortunately, currently, Americans face a retirement income crisis 
with too many people in danger of not having enough in retirement to 
maintain their standard of living and avoid sliding into poverty.
  Social Security benefits are modest; employer-sponsored pensions are 
disappearing; and too many people find it difficult to save for 
retirement. According to a recent study, one-third of American workers 
believe that they will either face a significant financial hardship 
during retirement or, in fact, will never retire. And the 2018 study 
found that almost two-thirds of workers have no retirement account 
assets.

                              {time}  0915

  The SECURE Act, which the Ways and Means Committee approved with 
unanimous, bipartisan votes, goes a long way in addressing this problem 
by making it easier for Americans to save.
  For example, the SECURE Act includes a small employer automatic 
enrollment credit. Automatic enrollment is shown to increase employee 
participation and retirement savings opportunities. Our bill creates a 
new tax credit of up to $500 per year for employers to defray the 
startup costs for new 401(k) plans that include automatic enrollment.
  The SECURE Act also increases the age for required minimum 
distributions from 70\1/2\ to 72. This age hasn't been adjusted since 
the 1960s. With Americans working longer, this will encourage them to 
continue saving.
  The SECURE Act also allows long-term, part-time employees to 
participate in their employer's 401(k) plans. Women are more likely to 
work part-time than men, so this legislation is particularly important 
for women.
  Madam Speaker, I thank Representative Murphy for her leadership here.
  The bill would also make it easier for small businesses to offer 
retirement plans to their employees by eliminating outdated barriers to 
the use of multiple employer plans. As a result of this provision, it 
is estimated that 600,000 to 700,000 new retirement opportunities will 
be formed.
  All of these are important, commonsense proposals that will improve 
our retirement system.
  I also note that this bill has tremendous support from a diverse 
group of stakeholders: AARP, SEIU, the Women's Institute for a Secure 
Retirement, Church Alliance, the Girl Scouts, the Boy Scouts, and the 
National Rural Electric Cooperative.
  Finally, Madam Speaker, I want to highlight a provision that fixes an 
urgent problem affecting children of our fallen troops and first 
responders. Due to changes included in the Republicans' tax law, the 
amount of tax imposed on survivor benefits for children of veterans, 
Active Duty servicemembers, and emergency personnel increased 
significantly.
  This bill eliminates that tax increase by repealing those changes. It 
also makes sure that all similar payments, like Tribal government 
payments to children, payments out of the Alaska Permanent Fund, and 
certain scholarships and fellowship grants will not be subject to this 
unexpected and unfair tax treatment.
  These fixes could not have been accomplished without Mrs. Luria's 
leadership on behalf of our troops, along with many Members on both 
sides of the aisle who supported her efforts.
  We should recognize Ms. Moore's leadership on Tribal payments and Mr. 
Horsford's leadership on the scholarship issue.
  I am very proud that we were able to put together a bill that will 
help American families prepare for a financially secure retirement, and 
that it was done on a bipartisan basis, which we will acknowledge as 
the morning moves on, with significant stakeholder support.
  Madam Speaker, I urge my colleagues to support H.R. 1994, the SECURE 
Act, and I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself as much time as I may 
consume.
  Madam Speaker, for nearly 2 years, Republicans have been advocating 
for policies that help our families and Main Street businesses save 
more and save earlier for the future.
  Following the historic rewrite of our Tax Code, Republicans knew the 
Tax Cuts and Jobs Act was only step one. We knew that we changed the 
trajectory of our economy with our reforms.
  Today in America, we are growing 50 percent faster than the Obama 
administration projected. Wages are surging for blue-collar workers and 
low-income workers for the first time in a decade, and our job market 
continues to be the envy of the world.
  These are all encouraging signs, and Republicans are committed to 
building on this success for years to come, which is why last year, we 
set out to change the culture in Washington, where we only do, it 
seems, tax reform once a generation.
  In Tax Reform 2.0, we passed three bills that offered permanent tax 
relief for families and small businesses, sparked American innovation, 
and went further and enhanced retirement and savings vehicles for our 
workers and our local, mainstream businesses.
  That effort, the Family Savings Act, was led by Representative   Mike 
Kelly.
  Those reforms passed on a bipartisan basis, and our retirement 
proposals passed the U.S. House of Representatives not once but twice.
  Unfortunately, time ran out on the calendar before we were able to 
get these reforms to the President's desk. But I was greatly encouraged 
earlier this year when Chairman Neal reached out to say he was 
committed to getting retirement-focused legislation signed into law 
this year. This area, retirement savings, is one that Chairman Neal has 
worked on for much of his career.
  Right away, he and I, and many members of our committee worked 
together to develop the Setting Every Community Up for Retirement 
Enhancement Act, the SECURE Act, we debate today.
  The SECURE Act builds well on the work that Republicans have 
championed throughout this Congress and the last. Our bipartisan 
legislation makes it easier for Main Street businesses to offer 
retirement plans for their workers by making it simpler, easing 
administrative burdens, and cutting down on unnecessary and often 
costly paperwork.
  We make it easier for them to join together to pool their resources 
to offer these plans. We offer local businesses the flexibility to 
tailor retirement plans to best fit their workers, not necessarily what 
Washington may need.
  Additionally, our reforms help Americans not only save earlier in 
their careers, but it helps families save longer, as well.
  We know for a fact that people are choosing to work longer today than 
in previous generations. Our Tax Code should reflect that, which is why 
we make smart, needed changes to reflect today's workforce.

  First, the age limit for contributing to IRAs is removed, as it 
should be.
  Second, we increase the minimum age for forcing people to spend their 
savings from 70\1/2\ to 72 years of age. My hope is, someday, we can we 
remove it completely. We want Americans to save throughout their 
lifetime and use those savings when they need it most, not when 
Washington needs it.
  This legislation is prowork and, equally as important, our bill is 
also profamily.
  For the first time, we allow what we call the new baby savings 
provision. We allow parents to access their own retirement accounts on 
a penalty-free basis to use when welcoming a new child into their 
homes, whether by birth or adoption. This works well for working 
parents and stay-at-home parents, as well. It is allowed to be used for 
the things you need, whether it is medical equipment, medical expenses, 
or if you need to spend time at home with your new child in those 
opening weeks. We know all that is so important.
  The bill also expands 529 plans to make sure you can use, tax-free, 
your savings for apprenticeships or to pay down college debt.
  Our legislation lowers taxes for Gold Star families, ensuring that 
children of our fallen heroes have the certainty they deserve. This 
provision was first made public in 2014 in a draft that was widely 
praised by Democrats and Republicans alike.

[[Page H4137]]

  It was brought to us by the Joint Committee on Taxation to make it 
simpler for families to file their kids' taxes and also to close some 
tax loopholes for the wealthy. Unfortunately, over 5 years, with 
scrutiny by both parties, tax experts, and the Joint Committee on 
Taxation, we still did not see one unintended consequence.
  In this bill, we worked together, Republicans and Democrats, to make 
sure we honor our Gold Star families.
  The time is right for these reforms. Workers' paychecks are rising; 
inflation is low; and businesses are expanding. What better opportunity 
to help folks save for the future?
  Chairman Neal deserves a great deal of credit. The bill we brought to 
the Rules Committee earlier this week cleared our committee nearly 
unanimously. Members of the Progressive Caucus, Freedom Caucus, New 
Democrats, Problem Solvers, and Republican Study Committee, we all 
voted ``yes'' on these reforms.
  This is a rare occurrence in Washington, and it speaks to what a 
committee can accomplish when we work together on reforms to positively 
impact our families and economy.
  I have to admit, it is incredibly troubling that special interests--
in this case, teachers unions--forced changes on our bipartisan bill 
for absolutely no good reason at the eleventh hour.
  These special interest groups forced Democrats to block two 
provisions.
  One allows parents to use their educational savings tax-free for the 
expenses of homeschooling. Nearly 2.5 million families use parent-
centered, child-centered homeschooling as the best way for their 
children to reach their potential. It is all types of Americans and 
becoming more mainstream. It is Christians and Jews and Muslims. It is 
all races. It is parents whose kids are exceptionally bright and 
parents whose kids have learning disabilities and severe special needs. 
That is why that was in the bill.
  The second provision that was blocked would allow families with kids 
in grades kindergarten through 12 to use savings for books, tutors, and 
educational therapies for students who may need it, such as those with 
learning disabilities. How many of us in this Chamber have kids with 
special needs and learning disabilities, some with mental and physical 
challenges? This would have allowed our parents to save tax-free and to 
help their kids with the special tools they need to reach their full 
potential.
  I want to talk a little more about this in the future, but my bottom 
line is that backdoor deals made in the dead of night without 
bipartisan knowledge or support are not the way to do business.
  Nonetheless, as we begin the debate on this bill, I am very 
encouraged by the underlying bill we have in front of us. It will 
greatly benefit our workers. It deserves strong support, and I am 
asking my colleagues on both sides of the aisle to support these 
reforms.
  Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I include in the Record a letter from the 
Church Alliance.

                                              Church Alliance,

                                                    April 1, 2019.
     Hon. Richard Neal,
     Chairman, House Committee on Ways and Means, Washington, DC.
     Hon. Kevin Brady,
     Ranking Member, House Committee on Ways and Means, 
         Washington, DC.
     Hon. Ron Kind,
     House of Representatives,
     Washington, DC.
     Hon. Mike Kelly,
     House of Representatives,
     Washington, DC.
       Dear Chairman Neal, Ranking Member Brady, Congressman Kind 
     and Congressman Kelly: The Church Alliance expresses our deep 
     gratitude for inclusion of a provision to clarify that all 
     church-affiliated organizations are able to participate in 
     church 403(b)(9) retirement plans in the recently introduced 
     Setting Every Community up for Retirement Enhancement 
     (SECURE) Act of 2019 (H.R. 1994). We are grateful for the 
     tremendous bipartisan work that has been done over the past 
     several years on retirement reform, and are hopeful Congress 
     will swiftly pass this legislation to ensure retirement 
     security for clergy, lay workers and their families across 
     the United States.
       The Church Alliance is a coalition of the chief executive 
     officers of 37 church benefits boards which are affiliated 
     with mainline and evangelical Protestant denominations, three 
     Jewish groups, and some Catholic schools and institutions. 
     Church Alliance members provide employee benefits to 
     approximately one million clergy, lay workers, and their 
     families, serving over 155,000 churches, synagogues, and 
     affiliated organizations such as schools, colleges and 
     universities, nursing homes, children's homes, homeless 
     shelters, food banks, and other ministries.
       Section 110 of the SECURE Act seeks to clarify a recent 
     positron by the Treasury Department and IRS to disregard more 
     than 30 years of practice, precedent, and clear statutory 
     language to bar employees of certain church-affiliated 
     organizations from participating in retirement income account 
     plans offered under section 403(b)(9) of the Tax Code. As a 
     result, employees of church-related nursing homes, daycare 
     centers, summer camps, preschools, colleges, universities, 
     hospitals, and other social service organizations stand to 
     lose access to the unique plan features they have come to 
     depend upon. In addition, the Treasury and IRS position would 
     cause church 403(b)(9) plans to incur significant transition 
     costs, which would unfortunately siphon resources away from 
     our core mission of supporting clergy and church lay workers 
     and lead to higher costs for these plan participants.
       We are encouraged by the introduction of the SECURE Act and 
     its upcoming markup on April 2. We hope the House votes on 
     passage of this important legislation as soon as possible. On 
     behalf of the Church Alliance, thank you for your 
     consideration of and attention to this important matter. We 
     look forward to continuing to work with you to promote the 
     retirement security of people of faith nationwide.
           Sincerely,
                                             James F. (Jim) Sanft,
                                     Chair of the Church Alliance.

  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
California (Mr. Thompson), who is the chairman of the Subcommittee on 
Select Revenue Measures.
  Mr. THOMPSON of California. Madam Speaker, I thank the gentleman for 
yielding.
  Madam Speaker, I rise in strong support of the SECURE Act. I thank 
the chairman, Mr. Neal, and Speaker Pelosi for their leadership on this 
important bill.
  America is facing a retirement crisis. Nearly half of all the people 
in America do not have any money saved for retirement. The SECURE Act 
before us today helps fix that.
  I am glad we could reach this bipartisan solution to make it easier 
for workers, including home healthcare workers in California, to take 
advantage of important retirement savings tools.
  As a combat veteran and the father of two first responders, I 
understand how important it is that this bill also reverses the harmful 
tax hikes included in the Republican tax bill on survivor benefits. 
Hiking taxes on Gold Star families and families of first responders is 
unjust, and it insults how sacred these benefits are. It is just plain 
wrong. This bill reverses that harmful provision.
  Madam Speaker, I thank Congresswoman Luria for her leadership in this 
effort.
  Madam Speaker, I ask that all my colleagues join me in support of 
this very important bill.
  Mr. BRADY. Madam Speaker, I yield 3 minutes to the gentleman from 
Pennsylvania (Mr. Kelly), who has helped lead many of these retirement 
reforms.
  Mr. KELLY of Pennsylvania. Madam Speaker, I thank Ranking Member 
Brady for yielding. I am so used to calling him chairman, but I look 
across the aisle to my great friend Richard Neal, who is chairman right 
now, and I thank him so much for bringing this up today.
  Madam Speaker, I enter into the Record a letter in support of the 
SECURE Act from AARP.

                                                         AARP,

                                                     May 22, 2019.
       Dear Representative: On behalf of our nearly 38 million 
     members and all older Americans, AARP supports the Setting 
     Every Community Up for Retirement Act of 2019 (SECURE Act).
       The SECURE Act contains a number of provisions that will 
     improve both access and levels of coverage in employer-
     sponsored retirement savings plans. The legislation would 
     enhance tax credits for employers that offer retirement plans 
     with automatic enrollment and encourage more adequate 
     deferral amounts. The legislation would also make it easier 
     for small businesses to offer employees an automatic savings 
     option through a multiple employer pension plan--a single 
     plan in which a pooled provider assumes the primary fiduciary 
     duties, making it easier for smaller employers to join 
     together to offer a retirement plan to their workers.
       Another important component of the SECURE Act is the 
     expansion of access to retirement savings plans for part-time 
     workers. There are more than 27 million part-time workers in 
     the U.S., including more

[[Page H4138]]

     than seven million Americans age 55 and older. According to 
     AARP research, 38 percent of those age 25 to 49 and 26 
     percent of those age 50 to 64 who work part-time do so 
     because of caregiving responsibilities--either for children 
     or an adult loved one. Helping these workers save for 
     retirement through a workplace savings plan would be 
     important for their long-term financial security. The bill 
     would be especially helpful to both caregivers and older 
     workers who shift from full-time to part time status.
       The bill would also give workers more information to 
     prepare for retirement as well as protections to safeguard 
     their hard-earned savings. It would require that workers' 
     benefit statements add a lifetime income disclosure so that 
     the statements show not just a lump sum, but the monthly 
     value of their savings at retirement. Seniors would also be 
     able to delay the required draw down of retirement savings 
     until age 72, giving them more time to accumulate savings. 
     The bill would also clarify rules on how employers and plans 
     may select appropriate lifetime income payments. It is 
     important to retain strong fiduciary law protections that 
     ensure all retirement plan decisions, including for pooled 
     plans and annuity selections, are made solely in the interest 
     of participants and beneficiaries.
       We urge you to vote YES on the SECURE Act, and look forward 
     to working with you to enact legislation to enhance the 
     ability of American workers to save for a secure retirement. 
     If you have any questions, please feel free to call me, or 
     have your staff contact Michele Varnhagen on our Government 
     Affairs staff.
           Sincerely,

                                             Nancy A. LeaMond,

                                      Executive Vice President and
                            Chief Advocacy and Engagement Officer.

  Mr. KELLY of Pennsylvania. Madam Speaker, this is an unusual day. In 
many cases, it is providential, as we look on the eve of the time that 
we take to honor our fallen war dead.
  Some people confuse it with the beginning of summer or the opening of 
our swimming pools. It has nothing to do with that.
  But the fact that we can talk today about the SECURE Act--and when 
you talk about ``secure,'' what does ``secure'' mean? It means giving 
you certainty, making you assured, and making something reliable, 
something dependable, something that is fixed, something that is 
established, and something that is solid and sound.
  What we are doing today is acting in the best interests of the 
American people. We are doing it in the people's House at a time when 
the rest of the Nation looks at us and asks, ``Isn't there anything 
they can do together to help the American people?''
  When I go home, I say, yes, there is. I have a great friend from 
Wisconsin, Ron Kind, and we feel the same way. I talked with Mr. Brady 
about it, and we feel the same way. I have talked with Mr. Neal about 
it, and we feel the same way.
  Today's effort is adding security in retirement years for every 
American, the opportunity to go into those golden years with a little 
gold in their pockets so that they can get through it, giving them 
peace of mind in being able to lay their heads on the pillows at night 
feeling safe and secure, knowing that they have prepared for their 
retirements.
  There are many other pieces to this bill. We have talked about the 
provisions to the Gold Star program. So if something was wrong, we made 
it right.
  The 529 programs give people the opportunity to actually save and 
allocate money for the education of their children.

                              {time}  0930

  It may not be in a 4-year college. Maybe it is a vocational 
opportunity. But it is there. It is their money, and they should be 
able to use it the way they want to use it.
  I just said earlier about it being providential, and I mean that 
sincerely. There will be a few times today that the American people 
will look at us and say: They really have our best interests at heart. 
They really go to work every day thinking that they are not 
representing themselves but representing us, the American people.
  When I look at this piece of legislation, I know how hard we worked 
with the chairman to get it through in the past sessions. We almost got 
it there but didn't quite get it there.
  Madam Speaker, I say to Chairman Neal, we are getting there. We are 
getting there. And I say to Mr. Kind, we are getting there.
  I just think that it is such a fantastic opportunity to show the 
American people who we really are and what we really do and where our 
hearts really lie.
  There are so many people who worked on this. Also, the staff. I thank 
Kara for doing the work that she has done. I always call her my girl 
Friday. In our office, Lori Prater. They all work so closely together. 
I wish the American people could see the camaraderie, could see how 
well we work together, and could understand that our concerns and their 
concerns are the same.
  I am saying today that the SECURE Act gives us that opportunity. The 
time for the American people and retired people is just beginning, and 
we have blue skies and strong winds on our backs.
  Madam Speaker, I wish everybody the best Memorial Day ever, and let's 
not forget our fallen heroes.
  Mr. NEAL. Madam Speaker, that is one of those moments when I didn't 
mind the gentleman's time running over.
  Madam Speaker, I include in the Record a letter of support from 
diverse coalitions across the country, including the Girl Scouts, the 
Jewish Federation, the Boy Scouts of America, the Christian Schools 
International, The Rural Broadband Association, and the National 
Council of Farmer Cooperatives.

                                                    April 1, 2019.

  Charities & Co-ops Endorse ``SECURE Act'' Retirement Package--Stops 
            PBGC From Grossly Overcharging Our Pension Plans

       We endorse the bipartisan ``SECURE Act'' retirement package 
     introduced by Ways & Means Chairman Richard Neal (D-MA), 
     Ranking Member Kevin Brady (R-TX), and Reps. Ron Kind (D-WI) 
     and Mike Kelly (R-PA). The ``SECURE Act'' stops the Pension 
     Benefit Guaranty Corp. (PBGC) from grossly overcharging 
     ``Cooperative and Small Employer Charity'' defined benefit 
     pension plans, i.e., plans covering multiple charities or 
     rural cooperatives (``CSEC Plans'') by including critical 
     provisions of H.R. 1007, the ``Retirement Enhancement and 
     Savings Act'' and H.R. 1993, the ``Providing Retirement 
     Security to Workers in Small Businesses, Cooperatives, and 
     Service Organizations Act'' championed by Reps. Kind and 
     Kelly.
       Our core missions are to provide food, electricity, 
     broadband, and other necessities of life, educate and empower 
     children, care for the most vulnerable, and promote the 
     sustainable development of the communities in which our 
     millions of members, volunteers and beneficiaries live. 
     However, current PBGC rules designed for large ``single-
     employer'' for-profit companies inappropriately require us to 
     divert scarce resources from our core missions. These bills 
     fix this inequity permanently.
       The same facts that led Congress to adjust funding rules 
     for CSEC Plans in 2014 strongly support adjusting PBGC 
     premiums charged to CSEC Plans today. (See Cooperative and 
     Small Employer Charity Pension Flexibility Act of 2014 (Pub. 
     L. No. 113-97). It does not make sense for CSEC Plans to be 
     subject to premiums designed for large ``single-employer'' 
     for-profit companies.
       It's time to stop forcing charities and not-for-profit 
     cooperatives to subsidize the PBGC premiums of large 
     ``single-employer'' companies. PBGC's own data supports 
     reducing premiums for CSEC Plans; in fact, PBGC projects 
     making more than a 3,000 percent return on CSEC plans for the 
     2014-2018 period.
       Congress should include these provisions in any retirement 
     package sent to the President's desk.
       Girl Scouts of the USA; UJA--Federation of New York, Inc.; 
     National Rural Electric Cooperative Assoc.; Boy Scouts of 
     America; United Benefits Group; NTCA--The Rural Broadband 
     Association; The Jewish Federations of North America; 
     Christian Schools International; Jewish United Fund/Jewish 
     Federation of Metropolitan Chicago; Hawkeye Insurance 
     Association; National Council of Farmer Cooperatives.
  Mr. NEAL. Madam Speaker, I acknowledge the good work that Mr. Kelly 
and Mr. Kind did on one very important amendment on this as well.
  Madam Speaker, I yield 1 minute to the gentleman from New Jersey (Mr. 
Pascrell).
  Mr. PASCRELL. Madam Speaker, after years and years of prior 
Congresses thinking that tax policy was giving cuts to the rich, this 
bill uses our Tax Code for some good.
  As the gentleman, my good friend from Pennsylvania, just said, we can 
work together, we can walk and chew gum at the same time, we can have 
oversight and have issues come up, and we join together for the 
American people. Whoever thinks otherwise doesn't know history and is 
not reading the papers every day.
  Retirement should be about one thing: security. If you have spent 
your life working your tail off, you have the right to be able to relax 
without fear.
  But, today, millions of Americans--millions--are afraid they are 
entering or are in retirement and don't have the resources they need to 
live. Many live on a Social Security check. They struggle to enjoy 
their best years.

[[Page H4139]]

  Employees deserve benefits, and employers need incentives to provide 
them. This legislation does both. It provides flexibility to 401(k)s to 
give employees and small businesses better access; it creates a tax 
credit for employers; and it creates a tax credit for employers that 
build automatic enrollment plans.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Madam Speaker, I yield an additional 30 seconds to the 
gentleman.
  Mr. PASCRELL. By passing this bill, we would finally repeal the 
maximum age for IRA contributions, something I have worked on for many 
years.
  This bill cleared out of our committee unanimously. That is pretty 
rare. It is as rare as a unicorn. That tells you how commonsense the 
bill is.
  I am glad that this bill eliminates an unfair tax, a tax increase on 
the benefits of children and Gold Star military families that was 
caused by the tax bill of 2017. This was a crushing blow to many 
families.
  Madam Speaker, it is fitting that the House will make this fix before 
Memorial Day.
  I encourage my colleagues to support the SECURE Act.
  Mr. BRADY. Madam Speaker, I am proud to yield 2 minutes to the 
gentleman from North Carolina (Mr. Holding), a key member of the Ways 
and Means Committee.
  Mr. HOLDING. Madam Speaker, this past Saturday, I had the great 
pleasure of addressing a number of homeschool graduates in Cary, North 
Carolina, 55 of them, in fact.
  I was impressed by these students, and I was inspired by their 
parents, who have made so many sacrifices and who have dedicated 
immeasurable time to ensuring their kids get a good education.
  Today, we were supposed to be voting on legislation that would help 
homeschoolers. Tens of millions of Americans choose 529 savings plans 
to cover K-12 expenses. This money can be used for public schools, 
private schools, and religious schools, but it cannot be used to cover 
homeschool expenses.
  This bill was supposed to fix this inequity by enabling homeschool 
parents to use their 529 savings plans. This would help erase and ease 
the financial burden on homeschool parents and give homeschoolers the 
same opportunities and resources enjoyed by other kids who go to 
private and public schools.
  As Chairman Neal said, Republicans and Democrats on the Ways and 
Means Committee came together, passed this bill out of our committee. 
Then it went to the Rules Committee, and Democratic leadership 
intervened. At the last minute, the bill was changed, and the language 
ending this discrimination against homeschoolers was removed.
  Why would anyone object to ending the wrongful discrimination against 
homeschool families? There are over 130,000 homeschoolers in North 
Carolina and 1.6 million across the country. They deserve fairness, and 
their incredible parents deserve our help.
  Sadly, Madam Speaker, that is not going to happen today. Otherwise, 
this is a good bill, but it certainly could have been a better bill.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Illinois (Mr. Danny K. Davis).
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, when only 39 percent 
of Americans have enough savings to cover an emergency costing $1,000 
and when 67 percent of Americans say that they will outlive their 
retirement savings, the SECURE Act becomes a lifesaver.
  It becomes a lifesaver because it makes it easier for small 
businesses to offer retirement plans. It gives retirement benefit 
opportunities to home healthcare workers, more than half of whom are 
women of color, working for extremely low pay.
  And I must take note of that, because these individuals are at the 
low end of not only quality of life but low end of earnings. They now 
have an opportunity for some serious consideration of retirement.
  It creates a small employer automatic enrollment credit to make it 
easier for workers to participate in 401(k) plans.
  These are important changes. It is a great bill, not just a good 
bill.
  Madam Speaker, I strongly support it, and I urge all my colleagues to 
do so.
  Mr. BRADY. Madam Speaker, I am proud to yield 2 minutes to the 
gentleman from Missouri (Mr. Smith), a member of the Ways and Means 
Committee, who has been a champion for expanding education savings 
accounts for Americans.
  Mr. SMITH of Missouri. Madam Speaker, I rise today to speak about a 
broken agreement and a missed opportunity to help families save for 
their children's education.
  In April, the Ways and Means Committee marked up this bill in a very 
bipartisan manner. We heard ideas from both sides of the aisle to help 
Americans save for the future and their retirements.

  Like all good negotiations, there was give and take. No side got 
everything they wanted, but we reached an agreement where we could pass 
the bill unanimously. In short, this is how the American people expect 
their government to work.
  Madam Speaker, unfortunately, it became clear that this agreement was 
not in good faith. At the last minute, Democrats decided to undermine 
our bipartisan work on the Ways and Means Committee and stripped out an 
issue many Republicans feel strongly about: helping families afford 
everyday K-12 education costs.
  Expanding 529 education savings accounts to cover common K-12 
expenses would help all families save for their children's education 
and their unique needs, no matter where they attend school, whether it 
is public school, private school, religious school, homeschool, and so 
on.
  Madam Speaker, I want to know, what is so controversial about helping 
families afford educational therapies for students with disabilities? 
What is so controversial about making it easier to pay for tutoring, 
books, and standardized testing fees?
  This is a missed opportunity to help families afford education costs 
no matter where they send their children to school, and it is a shame 
that partisan politics is getting in the way of helping families 
everywhere.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Evans).
  Mr. EVANS. Madam Speaker, I thank the chairman of this strong, 
powerful committee and the ranking member for leading this effort.
  Madam Speaker, I rise to offer my support for the SECURE Act.
  Making it easier for small businesses to offer retirement savings 
plans is vital. It is vital not only for the benefit of these small 
firms but also the people they employ, their families, and the 
communities they support.
  In my home State of Pennsylvania, we have nearly 1 million small 
businesses, employing 2.5 million workers, accounting for 46.7 percent 
of the workforce for the entire State. Small firms account for 99.6 
percent of my State's employers.
  Small businesses are a vital part of saving our middle neighborhoods 
in Philadelphia and across the country. These are neighborhoods that 
are poised to tip either toward blight or growth. By helping small 
businesses and their employees, the SECURE Act would help to revitalize 
these middle neighborhoods and help our economy grow from the ground 
up.
  Again, I thank the chairman and his leadership and the ranking member 
for this action.
  Mr. BRADY. Madam Speaker, I am very proud to yield 2 minutes to the 
gentleman from Arizona (Mr. Schweikert), a key member of our committee 
who worked on this legislation.
  Mr. SCHWEIKERT. Madam Speaker, to the committee chairman and, in my 
world, the chairman for life, you have done great.
  It has been an interesting experience being in the minority, but we 
are blessed. We have freaky-smart people on the committee. It works. 
Even when we disagree, at least the debate and the discussion is fairly 
highbrow.
  I, too, am concerned on the 529, more so because of the flexibility 
and, being the daddy of a 3\1/2\-year-old, not completely knowing if 
there are going to be any special needs coming, that choice. We should 
love and embrace the concept of that flexibility to take care of our 
little people.
  I am very encouraged that there is movement towards incentivizing it 
and

[[Page H4140]]

making it easier, particularly for smaller businesses, to offer access 
into retirement accounts.
  We need to have the conversation--and it is uncomfortable for all of 
us--go a bit further.
  The amount of our society that is now in independent-contractor 
relationships, should we be allowed to use technology so that 
population also starts to have more and more savings for the future? We 
just need to deal with it. That is where much of the economy, in a 
demand economy, is going.
  My last caveat--and I am voting for the bill. We have come a long 
ways. I do worry a little bit about the special agreement on 
newspapers, only because if we are truly worried about protecting 
workers into their retirement years, do we want to create more even 
special, special, special small cutouts where we are allowing the 
underfunding of a pension system?
  We just need to think that through a little more from an ethical 
standpoint. Do we keep creating carve-out after carve-out after carve-
out that creates a fragility for that retired population?
  Even though we think we are helping the businesses survive, we 
actually hurt the future chances of those retirees getting their 
checks. We need to be careful on that.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentlewoman from 
California (Ms. Sanchez), who was very instrumental in the provisions 
that will simplify the Form 5500 filing process for small business.
  Ms. SANCHEZ. Madam Speaker, I rise in support of the SECURE Act. I 
thank Chairman Richard Neal for his tireless efforts to get this 
legislation across the finish line.
  I have been proud to support versions of this bill for many years, 
and I am pleased that one of my bills has been included. My piece of 
this package offers a simple yet impactful way for small businesses 
across the country to better afford retirement plans for their 
employees.
  Too many Americans simply aren't putting enough money away to ensure 
a secure retirement. Today's bill takes important steps to strengthen 
access to retirement security for hardworking Americans, and I am proud 
to have contributed one piece to solving this puzzle.

                              {time}  0945

  But we still have a lot of work to do. I look forward to the passage 
of the SECURE Act today, and I am ready to keep working on the Ways and 
Means Committee to continue addressing our national retirement savings 
crisis.
  Madam Speaker, I again thank Chairman Neal.
  Mr. BRADY. Madam Speaker, I am proud to yield 2 minutes to the 
gentleman from Kansas (Mr. Estes), one of our new members of the Ways 
and Means Committee.
  Mr. ESTES. Madam Speaker, I rise today in support of the SECURE Act. 
It is an overall good policy that will encourage Americans to save for 
retirement.
  I am pleased that this bill makes it easier for small businesses to 
join together and offer retirement plans for more Americans. It allows 
graduate students and home healthcare workers to save more for 
retirement.
  It includes a policy change to help Gold Star families. It also 
includes a fix to the taxation of children's unearned income that will 
support American Indian Tribal youth and encourage them to pursue a 
college education, similar to the legislation that I helped introduce 
with my colleague from Wisconsin (Ms. Moore).
  Finally, this bill will allow 529 plans to be used to pay for student 
loans and apprenticeship programs.
  As a former State treasurer of Kansas, I oversaw a 529 plan and 
understand the importance of expanding these plans for our families. 
That is why I am disappointed that the manager's amendment removed good 
policy from this legislation that would have allowed 529 plans to help 
be used for expenses for K-12 education and to help special needs 
children.
  Earlier this year, my Republican colleagues and I on the Ways and 
Means Committee entered good faith negotiations with Chairman Neal and 
our Democratic colleagues to craft this bill. As a result, Republicans 
and Democrats on the committee unanimously voted for the SECURE Act in 
April.
  However, since that time, the other side of the aisle played politics 
with this legislation when it was before the Rules Committee and 
removed those additional 529 provisions that were originally included 
to help special needs students. So, while I support today's bill and 
the policies that are still included, I sincerely hope that, moving 
forward, we can stop playing politics with good pieces of legislation 
and work in a bipartisan manner and negotiate in good faith to produce 
legislation that will help the American people.
  Mr. NEAL. Madam Speaker, I include in the Record a letter of support 
for the SECURE Act from the National Association of Insurance 
Commissioners.

                                           National Association of


                                      Insurance Commissioners,

                                                      May 7, 2019.
     Hon. Richard E. Neal,
     Chairman, Ways and Means Committee, House of Representatives, 
         Washington, DC.
     Hon. Kevin Brady,
     Ranking Member, Ways and Means Committee, House of 
         Representatives, Washington, DC.
       Dear Chairman Neal and Ranking Member Brady: On behalf of 
     the National Association of Insurance Commissioners (NAIC), 
     we would like to express our support for H.R. 1994, the 
     Setting Every Community Up for Retirement Enhancement 
     (SECURE) Act. Recognizing the retirement savings crisis that 
     exists in the United States, state insurance regulators have 
     worked to make improvements to regulation and guidance 
     impacting product delivery, compliance, and innovation of 
     insurance products designed to help mitigate this crisis 
     under the NAIC Retirement Security Initiative. Given the 
     unique products and features of our sector, state insurance 
     regulators have embraced a broader public policy 
     responsibility to not only ensure consumers remain protected 
     by a solvent industry, but to help foster an environment 
     where they have greater flexibility and more options to take 
     informed steps to secure their retirement. The SECURE Act is 
     aligned with the goals of this initiative as it seeks to 
     provide greater consumer options for retirement plans.
       Several of the provisions contained in the SECURE Act also 
     complement our own consumer financial literacy and disclosure 
     efforts and will make it easier for consumers to save for 
     retirement. First, the legislation makes it easier for 
     consumers to engage in a tax-free rollover of an annuity to 
     another employer-sponsored retirement plan or IRA and avoid 
     surrender charges and fees, making these products more 
     portable and providing consumers more flexibility. Second, 
     the bill would encourage plan participants to think in terms 
     of lifetime income by requiring benefit statements to break 
     down the total account balance into estimates of monthly 
     annuity income at least once a year. Third, the legislation 
     makes it easier for ERISA plan sponsors to select companies 
     to offer annuity products by creating a safe harbor that 
     relies on the conservative solvency regime of the state 
     insurance regulatory system, which is specifically designed 
     to ensure that an insurance company's obligations will be met 
     both today and many years into the future.
       We applaud your leadership in this effort to assist savers 
     in making more-informed decisions to prepare for their 
     retirement and allowing defined contribution plans to become 
     a more effective vehicle for providing lifetime income.
           Sincerely,
     Eric A. Cioppa,
       NAIC President, Superintendent, Maine Bureau of Insurance.
     David Altmaier,
       NAIC Vice President, Commissioner, Florida Office of 
     Insurance Regulation.
     Michael F. Consedine,
       Chief Executive Officer, National Association of Insurance 
     Commissioners.
     Raymond G. Farmer,
       NAIC President-Elect, Director, South Carolina Department 
     of Insurance.
     Dean L. Cameron,
       NAIC Secretary-Treasurer, Director, Idaho Department of 
     Insurance.

  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Wisconsin (Mr. Kind), who was very instrumental in provisions which 
will help small businesses sponsor retirement plans, including 
multiple-employer plans.
  Mr. KIND. Madam Speaker, I thank the gentleman for yielding.
  I rise in strong support of the SECURE Act. This legislation is meant 
to address one of the great gaps we have in retirement savings: 
employees in small businesses, primarily affecting women, minorities, 
and young adults.

[[Page H4141]]

  I want to thank the chairman and the ranking member for their 
leadership on the issue. I want to thank my good friend   Mike Kelly 
for partnering with me throughout this process, along with former 
colleagues Dave Reichert and Pat Tiberi, with whom I had a chance to 
work on this issue in particular.
  I also want to thank the Representative in the chair today, 
Representative Elaine Luria, our commander. She is the one who 
introduced the Gold Star fix. It was a mistake that was made in the Tax 
Code that adversely affects survivor benefits for children of our 
fallen soldiers.
  It also fixes distributions to Native American children and to 
students who receive scholarships and grants. I thank her for her 
leadership on it.
  This is a good, bipartisan, bicameral piece of legislation. I 
encourage my colleagues to support it.
  Mr. BRADY. Madam Speaker, I yield 2 minutes to the gentleman from 
Nebraska (Mr. Smith).
  Mr. SMITH of Nebraska. Madam Speaker, I do want to say that I plan to 
vote for this bill. I support the improvements it makes to savings and 
retirement, which have gained bipartisan approval, both in the Senate 
and here in the House.
  In particular, I appreciate hearing from agricultural cooperatives 
across Nebraska's Third District about the importance to them of the 
language in this bill reducing PBGC premiums for nonprofits.
  I am also incredibly pleased we are moving quickly to address the 
Gold Star families tax issue and hope we can complete work on that 
problem as quickly--if not more quickly--as the rest of the provisions 
in this bill.
  I do have reservations and concerns about the process which got us 
here and some provisions which are no longer in the bill.
  As we know, the bill was marked up in the Ways and Means Committee on 
April 2. We reported it out unanimously, a very bipartisan effort. It 
was moved out of committee by a voice vote.
  Prior to the markup, there were no concerns raised about the 
provisions in the bill, provisions that would help families pay for the 
education of their children, whether in home school or public school. 
As we know, many expenses come up for various reasons.
  It is unfortunate that that took place, and I know that this wasn't 
the first time. Actually, it was the second time in 2 weeks that we are 
here considering legislation that was a product of bipartisan agreement 
in committee, but it was altered before it came to the House. It is 
very unfortunate.
  And as I said at the beginning, I am going to support this bill. It 
has many good provisions, but I hope that we can avoid similar 
situations from undermining the committee process, undermining the 
integrity of the committee system that we have that empowers individual 
Members to work together with colleagues on a bipartisan basis. Let's 
not undermine that.
  Again, I will vote for this bill. It could have been a better bill, 
and I hope next time we can address the shortcomings, moving forward.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Oregon (Mr. Blumenauer), chairman of the Trade Subcommittee.
  Mr. BLUMENAUER. Madam Speaker, I appreciate the gentleman's courtesy, 
and I appreciate his moving forward on the issue of retirement 
security, for which he has been a tireless champion.
  We are facing a retirement crisis in this country. Nearly half of 
households headed by someone 55 or older lack retirement savings. One 
of the many reasons they are not saving enough is lack of access to 
retirement plans. This bill moves in that direction.
  I appreciate it is going to increase access to employer retirement 
plans for people who work in small business and part-time workers.
  Of particular interest to me is a provision in this bill that fixes a 
quirk in the current law that prevents many home care workers from 
participating in a 401(k) or saving with an individual retirement 
account, an IRA.
  I heard directly from home healthcare workers in Oregon about this 
problem. I am pleased, working with the committee, we have been able to 
fix this quirk moving forward. I anticipate this is one of many bills 
that will be moving forward dealing with retirement security in 
America, and I look forward to that progress.
  Mr. BRADY. Madam Speaker, I yield 2 minutes to the gentleman from 
Michigan (Mr. Walberg), who has worked on retirement and pension issues 
for many years.
  Mr. WALBERG. Madam Speaker, I thank my friend from Texas for 
yielding, and I thank him for his work.
  Madam Chairman, I rise today in support of H.R. 1994, the Setting 
Every Community Up for Retirement Enhancement Act.
  I would like to thank Chairman Neal and Ranking Member Brady for 
their leadership on this important piece of legislation.
  For families in my district, putting away enough money for retirement 
is a constant struggle. Now more than ever, we need policies that 
empower workers to save more and save earlier for retirement.
  I am pleased this legislation includes a provision I coauthored with 
my colleague from Delaware (Ms. Blunt Rochester). Our bipartisan 
provision clarifies rules surrounding annuity plans, making it possible 
for more employers to provide guaranteed lifetime income products as 
part of their benefits package. Our goal is to remove barriers to 
saving and give workers a variety of tools so they can choose what 
option best fits their needs.
  Madam Speaker, we have a retirement income crisis in this country, 
and the SECURE Act will help more Americans retire with dignity and 
piece of mind. I urge its passage today.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentlewoman from 
Washington (Ms. DelBene), who was very instrumental in the provisions 
providing pension funding relief for community newspapers and home 
healthcare workers as they attempt to maintain their retirement plans.
  Ms. DelBENE. Madam Speaker, I thank the chairman for yielding.
  I rise today in support of the SECURE Act. It is time that we address 
the retirement crisis in our country.
  The SECURE Act takes several important steps to make it easier for 
Americans to save for retirement, and one important example is helping 
provide retirement benefit opportunities to home care workers.
  Home care workers provide critical services for the elderly and 
disabled. Their service is vital to ensure that patients under their 
care lead a dignified life, and it is only right that they are able to 
have a secure retirement.
  The SECURE Act fixes a tax inequity that unintentionally prohibits 
many home care workers from participating in a 401(k) or contributing 
to an IRA.
  If we do not pass the SECURE Act, between 15,000 and 30,000 workers 
in my home State of Washington could be kicked out of their defined 
contribution plan. With passage of the SECURE Act, home care workers 
will rightfully have the same opportunity to save for retirement as 
other workers.
  I urge my colleagues to vote ``yes.''
  Mr. BRADY. Madam Speaker, I yield 2 minutes to the gentlewoman from 
Missouri (Mrs. Wagner), a leader who has worked for working moms and 
our veterans.
  Mrs. WAGNER. Madam Speaker, I thank my friend from Texas (Mr. Brady) 
for yielding me the time.
  Madam Speaker, I rise today in support of the SECURE Act.
  Over the last two decades, we have made progress in helping Americans 
save more for their retirement. U.S. retirement savings have increased 
from $11 trillion in 2001 to $28 trillion today. But we need to do 
more, especially in this booming economy.
  This legislation will increase the number of workers with access to 
retirement plans, encourage higher savings rates, and enable older 
working adults to save for a secure retirement.
  The SECURE Act is a commonsense, private-sector solution enabling 
Americans to save more for their retirement by expanding access for 
workers who choose to participate in a workplace plan. It 
simultaneously preserves employer choice and competition.
  The SECURE Act has the added benefit of lowering taxes for our Gold 
Star families. Providing more for the relatives and the children of 
U.S. military members who gave their lives to secure our freedom and 
liberty is most fitting on the eve of our Memorial Day weekend.

[[Page H4142]]

  I urge my colleagues to vote in favor of this legislation today.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Wisconsin (Ms. Moore), who was a leader on the kiddie tax issue 
addressing Tribal distributions.
  Ms. MOORE. Madam Speaker, I thank the chairman for his leadership and 
for moving this bipartisan legislation forward. This is really a 
necessary step to ensuring that more Americans can save for retirement.
  I also commend the chairman for his swift action to redress the harsh 
tax rate and unintended consequences caused by the Tax Cuts and Jobs 
Act of 2017 on Gold Star families, low-income children, and young 
adults who receive payments from Tribal governments.
  Our special tax rules on unearned income of children and young adults 
to prevent wealthy families from engaging in tax planning to 
artificially lower their tax burden, of course, is not relevant to 
these payments made to Gold Star families, survivor benefits, and 
Tribal children.
  The 2017 rate repeal only partially addressed an underlying problem 
where additional legislation is required relative to Tribal youth. Mr. 
Estes and I introduced bipartisan legislation, H.R. 2018, to fix the 
underlying problem of the kiddie tax on taxable disbursements made by 
Tribal governments.
  So, Madam Speaker, I ask the chairman to tell Members of this Chamber 
and the Tribes who are watching closely throughout the country what his 
intentions are relative to the underlying problem with the kiddie tax.
  Mr. NEAL. Will the gentlewoman yield?
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. NEAL. Madam Chair, I yield myself 30 seconds.
  I want to thank the gentlewoman from Wisconsin (Ms. Moore) for her 
support of the bill before us and her leadership on addressing the 
unfair tax that has plagued Tribes making taxable distributions to 
their children and young adults.

                              {time}  1000

  The kiddie tax was enacted to prevent wealthy families from shifting 
family income to minor children.
  The rationale for this new law does not apply to funds distributed by 
Indian Tribal governments because Indian Tribes are not taxable 
entities and their distributions could never be intended for the 
purpose of a tax deduction.
  The Ways and Means Committee will work to address this problem, with 
the goal of excluding such Tribal government distributions from the 
kiddie tax provisions.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Madam Speaker, I yield 15 seconds to the gentlewoman from 
Wisconsin (Ms. Moore).
  Ms. MOORE. Madam Speaker, this is a first step toward meeting our 
trust obligations to the sovereign first peoples of this country.
  I thank the chairman for yielding.
  Mr. BRADY. Madam Speaker, I yield myself 30 seconds.
  Madam Speaker, I want to recognize those who worked in a bipartisan 
way to address the Gold Star issue: Representatives Bacon, Diaz-Balart, 
Herrera Beutler, Holding, Marchant, Wagner, Waltz, and Wenstrup.
  Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, how much time is remaining on both sides?
  The SPEAKER pro tempore. The gentleman from Massachusetts has 14\3/4\ 
minutes remaining. The gentleman from Texas has 6\3/4\ minutes 
remaining.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Illinois (Mr. Schneider), who is very knowledgeable about retirement 
issues.
  Mr. SCHNEIDER. Madam Speaker, I rise in strong support of the SECURE 
Act.
  A secure and dignified retirement is a critical part of the American 
Dream, but for too many seniors, this aspiration is falling 
increasingly out of reach.
  I am pleased that this House is taking action today in response. Our 
bill will help more Americans save for retirement by allowing workers 
to participate in 401(k) plans.
  Additionally, the legislation makes it easier for small businesses to 
offer retirement plans to their employees and help small businesses set 
up automatic enrollment programs. It replaces antiquated barriers 
slowing the adoption of multiemployer plans and improves the quality of 
service providers.
  The AARP estimates that these changes will lead to more than 700,000 
new retirement accounts.
  Finally, as we approach Memorial Day and reflect on the ultimate 
sacrifice made by fallen servicemembers and their families, I am 
pleased this legislation fixes a provision in the 2017 Republican tax 
law that increased taxes on survivor benefits paid by families. Our 
Gold Star families already deal with the unimaginable loss of a loved 
one; they should not also be facing a tax increase.
  Madam Speaker, I am so proud this legislation was a bipartisan effort 
in the Ways and Means Committee, and I urge my colleagues to support 
this important bill to improve retirement security.
  Mr. BRADY. Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from New 
York (Mr. Suozzi).
  Mr. SUOZZI. Madam Speaker, there is a retirement crisis in America 
today. Working men and women simply just don't have enough money in 
retirement savings.
  I rise today to advocate for the bipartisan SECURE Act, which will: 
one, help small businesses provide retirement plans that include 
automatic enrollment by giving those businesses an opportunity to pool 
together and by offering them a tax credit to help pay for startup 
costs; and, two, provide 401(k)s for the rising number of part-time 
workers and independent contractors in the new tech economy that can be 
portable from their current jobs to the next ones.
  Since the 1980s, the American economy has grown dramatically. Since 
1983, the Dow Jones has gone up 1,200 percent and the GDP has gone up 
600 percent, yet the wages of the American people have gone up less 
than 20 percent. No longer is hard work a guarantee of achieving the 
American Dream.
  Every American, whether liberal or conservative, believes that if you 
are willing to work 40 or 50 hours a week and 50 weeks a year that you 
should be able to have a decent place to live, to educate your 
children, to have health insurance, and to retire one day without being 
scared. That is simply not happening.
  The SECURE Act will help make retirement security a reality for 
millions of Americans.
  Mr. BRADY. Madam Speaker, I yield 2 minutes to the gentleman from 
Florida (Mr. Waltz), a veteran, a Green Beret, and a new Member of 
Congress.
  Mr. WALTZ. Madam Speaker, as a combat veteran and as a Green Beret, 
this is personal for me. I know firsthand the seriousness of the call 
to serve our country, and I know that when soldiers take their place on 
the battlefield, they are prepared to defend America and lose their 
lives for our freedom.
  The families of our servicemembers wait for their loved one's safe 
return nervously and anxiously await hearing their voice and feeling 
the comfort of their warm embrace once more. Unfortunately, for some, 
the knock on their door instead initiates them into a fraternity no 
family wants to join. That knock changes them forever and makes them 
part of the Gold Star family.
  When our servicemembers pass, many of their spouses put their 
benefits in their children's name. As if the loss of a mother or a 
father isn't and wasn't painful enough, some of our Gold Star 
children's pain is worsened by an unintended oversight in our Tax Code 
which forces them to pay thousands in additional taxes on survivor 
benefits and raises their tax liability from 12 percent to nearly 40 
percent.
  This is not just a financial issue; it is a strategic issue for our 
Volunteer military. It affects recruitment and retention. Some people 
may not want to volunteer with the possibility of a large financial 
burden on their loved one if the worst happens.

  The bottom line is, if our family support starts cracking, the entire 
foundation of our modern military is in trouble. We have an opportunity 
today to right this wrong and to fix this with the Gold Star Family Tax 
Relief Act, which is being included in the SECURE Act that is up for 
today's vote.

[[Page H4143]]

  I would thank Chairman Neal and Ranking Member Brady for quickly 
recognizing this issue and for including this measure in the final 
bill.
  Today, I call upon my colleagues in the House to make this right. I 
hope that Members will join me in supporting the passage of this 
legislation to show our country's appreciation to the Gold Star 
families for laying so costly a sacrifice upon the altar of freedom.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Virginia (Mr. Beyer) and thank the gentleman for his valuable work on 
the kiddie tax issue that affects the children of fallen first 
responders.
  Mr. BEYER. Madam Speaker, I rise in strong support of H.R. 1994.
  I would like to begin by thanking Chairman Neal, my friend Ron Kind, 
and all of the good folks and committee staff for their hard work on 
this bill.
  The 2017 Republican tax law was passed despite being littered with 
errors, unintended consequences, and just straight-up bad ideas.
  One of the most unjustifiable and immediately painful provisions of 
the bill was the unintended consequence of this change to the kiddie 
tax, which resulted in massive tax increases for the surviving children 
of servicemembers, first responders, as well as for scholarship 
recipients and other minors. The SECURE Act repeals that provision.
  These populations deserve our sympathy and support. I can only hope 
that this was a stunning oversight.
  Since the harms of this provision came to light during tax filings, 
many Members, including myself, heard from constituents whose families 
were subject to these unjust and shocking bills.
  Several bills have been introduced to address these tax issues for 
various impacted groups, including my bill, H.R. 2840, which exempted 
the survivors of first responders. It is a strong, positive bill, and I 
encourage my colleagues to vote ``yes.''
  Mr. BRADY. Madam Speaker, I am very proud to yield 1 minute to the 
gentleman from California (Mr. McCarthy), the leader for Republicans of 
the U.S. House of Representatives.
  Mr. McCARTHY. Madam Speaker, I thank the gentleman for yielding.
  Before I begin, I want to thank both sides. I want to thank the 
chairman and I want to thank the ranking member, not for the bill that 
is on the floor today but for the bill that was put out of committee.
  When we look across the country, we see division. Very seldom can we 
ever find a bill that gets every Democrat's and every Republican's 
support, but that is what we look for, that committees can work 
together.
  The whole reason bills go through committees before they come to the 
floor is this is where the expertise is, this is where the debates 
happen, this is where it is combined together.
  But now I want to apologize to the chairman. I don't know what the 
gentleman's leadership did or why. But why would they change the moment 
that we have for the country to see something that they haven't seen in 
a while? Why would they do something that a chairman and a ranking 
member and every member on that committee, regardless of where they 
come from across this country, regardless of party, agreed to?
  Special interest has power. Special interest is more powerful than 
the members who are in that committee with the expertise. Special 
interest is more powerful than Members of Congress finding common 
ground. Special interest is more powerful with the leadership on the 
other side.
  They should not treat their Members this way. They should not treat 
America this way.
  So let's talk about this bill. Because what it really goes to is, how 
powerful is this special interest, and who are they hurting?
  Many parents choose to use a 529 savings account to help them save 
money for their children's education. We all agree on each side of the 
aisle that the most important thing that happens when you have a child 
is the opportunity that they will have. It is no longer about what you 
will become; it is what your children's opportunities will be.
  We all agree that education is the great equalizer. It doesn't matter 
where a person grows up or what side of the street they live on, but 
education will give everybody that opportunity.
  As a Republican leader, when I watched this committee work, I was 
proud. I was proud of both sides. I was proud that they were able to 
come together. And where they came together was on 529 accounts. These 
plans allow them to invest in a tax-free account, incur interest, and 
spend it on educational expenses like tuition.
  For many years, these accounts only applied to college-related 
expenses, but, today, thanks to the Republican-led tax reform law in 
2017, families can now use those funds to pay K-12 costs too.
  Because why would we want to hurt somebody? Maybe they were in a bad 
school district or have other reasons. We want everybody in America to 
have that opportunity. That was a big win for all families--Republican, 
Democrat, Green Party, didn't matter.
  Under current law, 529 savings accounts cannot be used for K-12 book 
costs, tutoring expenses for when kids fall behind and we want them to 
be able to catch up, fees for college admission exams--anybody that has 
a child at that age knows how much is spent on all of the exams--or to 
pay for educational therapy for students with disabilities.
  Wouldn't everybody want to help that child with disabilities? I 
believe so. The action of the committee proved that. Every Democrat in 
the committee said that, and every member on the Republican side said 
that. I was proud of that.

  But, unfortunately, special interest has more power. This is why, to 
me, I have real concerns on this bill. The official bill report is 
fantastic, what came out of committee. But when it got to the Democrat 
leadership, I guess they had different plans.
  Now, I shouldn't be shocked, because I was sitting in this well last 
week with the same dilemma. Another committee, Energy and Commerce, was 
dealing with a really important issue, much like what we are dealing 
with today, prescription drugs. And what happened was that both sides 
agreed on how to make prescription drug prices lower and give Americans 
more options, and they all voted for it. But it went right through that 
leadership, Madam Speaker, on the other side, and special interest won 
again. They put a poison pill in, so that will never become law.
  Madam Speaker, because special interest pressured this leadership to 
change this bill, it says something. To me, it says three things very 
clearly.
  It seems to me that the Democratic leadership is not the same 
Democratic leadership that I knew in the past. There are people on the 
other side of the aisle who call themselves Socialist Democrats. It 
seems to me that they want institutions, not individuals, to be focused 
on education funding. They want partisan interests, not parents, to 
decide how children learn. And they want the Federal Government, not 
families, to have control over their money.

                              {time}  1015

  But that is not what the American people want. The American people 
want exactly what happened in that committee, exactly the power that 
brought all the Republicans and all the Democrats together. They don't 
want special interests to continue to run this House.
  The committee proved they could stand up. Whom did they stand up for? 
Those who need it the most: the parents of children with disabilities, 
leveling the playing field so every child has an opportunity when it 
comes to education.
  Of all the issues that could divide us, Madam Speaker, I don't 
understand why the leadership did that to the Ways and Means Committee. 
I don't think that is right for the work that the chairman and the 
ranking member put in. We deserve better. We displayed that we could be 
better. Unfortunately, special interests won over the parents, and that 
is wrong.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Michigan (Mr. Kildee).
  Mr. KILDEE. Madam Speaker, I thank the chairman for yielding and for 
his leadership on bringing this important legislation to the floor.
  Let's say what this bill really does. It provides Americans who work 
hard access to retirement with dignity and respect. It allows workers 
who don't have

[[Page H4144]]

access to retirement accounts--including home healthcare workers, part-
time workers, as well as multiple employers--to have access to 
retirement accounts.
  The SECURE Act fixes this. This is an important step forward in 
providing much-needed retirement security for so many Americans. It 
encourages small employers to develop 401(k) plans. It helps build our 
workforce by allowing apprentices access to college savings accounts to 
cover the cost of purchasing equipment necessary for their training for 
their chosen trade. This is a big step forward for those workers.
  Finally, Madam Speaker, I appreciate the fact that this bill also 
addresses some of the many oversights of the 2017 Republican tax bill, 
including addressing how children are taxed, especially Tribal 
children.
  This is a good bill, and I support it.
  Mr. BRADY. Madam Speaker, I am prepared to close, and I reserve the 
balance of my time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentlewoman from 
Florida (Mrs. Murphy), who was instrumental on a provision allowing 
long-term, part-time workers to participate in 401(k) plans.
  Mrs. MURPHY. Madam Speaker, if you spend your life working hard, then 
you should have the dignity of a secure retirement. That is why I rise 
today in strong support for the SECURE Act, a bipartisan bill that will 
help more Americans retire with dignity and with a higher quality of 
life. It allows older Americans to continue to invest more and for 
longer in their traditional IRAs so that they can get a greater ROI on 
their hard-earned money.
  It also contains a provision I authored requiring employers to allow 
long-term, part-time employees to participate in a company's 401(k) 
plan. This change will especially help women, as women are more likely 
than men to be long-term, part-time workers.
  Finally, the SECURE Act fixes a mistake the Republicans made last 
Congress when they rammed through their partisan tax giveaway to 
corporations and the wealthy. In doing so, they inadvertently raised 
taxes on Gold Star children and families.
  As we fix this problem today, I hope this body remembers that process 
matters and that a bad process leads to unintended consequences that 
hurt everyday Americans. I am glad that we can undo some of that damage 
today.
  Madam Speaker, I urge my colleagues to support the SECURE Act, which 
is a good piece of bipartisan legislation that helps countless American 
families.
  Mr. BRADY. I reserve the balance of my time, Madam Speaker.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Connecticut (Mr. Larson), who was very instrumental on a provision 
related to benefits to volunteer firefighters and emergency medical 
responders.
  Mr. LARSON of Connecticut. Madam Speaker, I rise today to support the 
SECURE Act and commend Chairman Neal and Republican Leader Brady for 
the outstanding work on this, as well as our colleagues Ron Kind and 
Mike Kelly. I also would like to single out Dave Reichert, who is no 
longer here, and myself for the work that was done with regard to 
volunteers.
  The provisions of this bill in terms of aid and assistance to rank-
and-file citizens are legendary--and I thank Mr. Neal again for those 
efforts--but specifically for volunteer firefighters, for EMTs, and for 
those who give selflessly in an opportunity to serve their communities. 
For the meager amounts of uniforms and whatever they received in 
compensation, to have that taxed was an insult. So I am proud, again, 
to make sure that this piece of legislation included an opportunity for 
volunteers all across this country. Twenty-three communities in my 
State have volunteers.
  I thank the chairman again for his leadership.
  Mr. BRADY. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from 
Virginia (Mr. Scott). Chairman  Bobby Scott is responsible for a number 
of very important provisions in this legislation.
  Mr. SCOTT of Virginia. Madam Speaker, I thank the gentleman for 
yielding.
  I rise in support of the SECURE Act, a bipartisan proposal to address 
our Nation's retirement security crisis. Several of the bill's 
provisions are under the jurisdiction of the Committee on Education and 
Labor, and I would like to discuss two of them.
  First, the SECURE Act makes it easier for small businesses to band 
together to form multiple employer plans. This is expected to increase 
workers' access to retirement savings programs with potentially lower 
cost investment options.
  Second, the SECURE Act includes a carefully and narrowly tailored 
safe harbor for the selection of an annuity provider for 401(k) plans. 
This limited safe harbor is intended to ease employers' concerns about 
their fiduciary liability and to expand workers' access to annuities 
and other lifetime income options.

  I thank Chairman Neal and Ranking Member Brady for their leadership, 
and I urge my colleagues to support the SECURE Act.
  Mr. BRADY. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentleman from New 
Jersey (Mr. Malinowski).
  Mr. MALINOWSKI. Madam Speaker, I rise today to express my strong 
support for the bipartisan SECURE Act. This bill will enable hundreds 
of thousands of working and middle-class Americans to retire with the 
dignity they deserve.
  According to the AARP, 72 percent of New Jersey's workers say they 
are anxious about having enough money to live comfortably through 
retirement, and 86 percent of workers without access to a retirement 
savings account would take advantage of one if available.
  Madam Speaker, 1.7 million people in New Jersey work for employers 
that do not provide access to a retirement plan. So this year, our 
State passed a law requiring businesses with 25 or more employees to 
participate in a retirement savings program. The SECURE Act will make 
it much easier for small- and medium-sized businesses in New Jersey to 
meet this requirement by allowing them to pool together to create 
multi-employer plans. It also expands access to retirement accounts for 
home healthcare workers, a rapidly growing sector of our economy.
  Passing this bill today will go a long way toward helping Americans 
retire with peace of mind. I am grateful for the bipartisan support, 
and I urge my colleagues to back the bill.
  Mr. BRADY. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the gentlewoman from 
Virginia (Mrs. Luria) and thank her particularly for her critical 
leadership in preventing an unfair and unexpected tax burden from being 
imposed on the children of our fallen soldiers.
  Mrs. LURIA. Madam Speaker, we are all in Congress because we see room 
for improvement in America, especially for our servicemembers, 
veterans, and our military families. As a 20-year Navy veteran myself, 
I know it is not just the brave men and women who fight for America, 
but also the families who support them every step of the way.
  When Gold Star widows from Virginia Beach contacted me about how 
their tax bills jumped thousands of dollars as a result of the 2000 tax 
law, I knew I had to do something. That is why I took action to 
introduce the bipartisan Gold Star Family Tax Relief Act, which fixes 
the unintended tax hike that many Gold Star families experienced.
  A number of families across our coastal Virginia district have shared 
their stories about how this tax law changed their lives. One woman, 
the widow of a Navy SEAL killed in Afghanistan, saw the taxes on her 
son's benefits rise by $4,000 in 2018, another by $6,000, and another 
by $2,500.
  What this tax bill did to Gold Star families was wrong, but I have 
been heartened to see so many of my colleagues join me in a bipartisan 
effort to right these wrongs. As of today, we have 155 cosponsors and 
received endorsements of 20 veterans service organizations.
  The SPEAKER pro tempore (Ms. DeGette). The time of the gentlewoman 
has expired.

[[Page H4145]]

  

  Mr. NEAL. Madam Speaker, I yield the gentlewoman from Virginia an 
additional 1 minute.
  Mrs. LURIA. Madam Speaker, with this momentum, we can fix a problem 
for so many heroic families and ensure security for their benefits.
  I include in the Record a letter signed by 20 veterans service 
organizations in support of the Gold Star family tax provisions 
included within the SECURE Act.

                                                     May 22, 2019.
     Hon. Elaine Luria,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Luria: As leaders of the major veterans, 
     military, and survivor organizations, we are pleased to offer 
     our support for H.R. 2481, the Gold Star Family Tax Relief 
     Act.
       Surviving spouses of service members who die in the line of 
     duty and military retirees who die from service-connected 
     wounds, illnesses, or injuries are entitled to Dependency and 
     Indemnity Compensation (DIC) benefits from the Department of 
     Veterans Affairs. Survivors who paid into the Department of 
     Defense Survivor Benefits Plan (SBP) have a dollar-for-dollar 
     offset of their SBP benefits by the amount of DIC benefits. 
     To avoid the SBP/DIC offset, surviving spouses often sign 
     over SBP benefits to their children to ensure the family 
     receives both earned benefits.
       Due to a recent change in tax law, known as the ``Kiddie 
     Tax,'' Gold Star families who were formerly obligated to pay 
     12 to 15 percent in taxes on their earned benefits are now 
     being taxed up to 37 percent, leaving them thousands of 
     dollars in tax debt. This important bill would rightfully 
     repeal the Kiddie Tax and reinstate military survivor 
     benefits to the previous tax rate.
       Thank you again for your leadership on this issue. We look 
     forward to working with you and your staff to pass this 
     important legislation immediately.
           Sincerely,
       Robert Wallace, Veterans of Foreign Wars of the United 
     States; Bonnie Carroll, Tragedy Assistance Program for 
     Survivors; Harriet Boyden, Gold Star Wives of America; Joseph 
     R. Chenelly, AMVETS; Louis Celli, The American Legion; Joyce 
     Wessel Raezer, National Military Famiy Association; Dana T. 
     Atkins, Military Officers Association of America; Carl Blake, 
     Paralyzed Veterans of America; Keith A. Reed, Air Force 
     Sergeants Association; John Cho, AMSUS, the Society of 
     Federal Health Professionals.
       James T. Currie, Commissioned Officers Assn. of the US 
     Public Health Service, Inc; Norman Rosenshein, Jewish War 
     Veterans of the USA; Vincent Patton III, Non Commissioned 
     Officers Assn. of the United States of America; Randy Reid, 
     USCG Chief Petty Officers Assn.; Jeff J. Schloesser, Army 
     Aviation Association of America; Christopher Cole, 
     Association of the United States Navy; Carol Setteducato, 
     Chief Warrant Officers Association of the US Coast Guard; 
     Thomas ``LPM'' Howlett, Marine Corps Reserve Association; 
     Kenneth Greenberg, The Retired Enlisted Association; Brian 
     Dempsey, Wounded Warrior Project.

  Mrs. LURIA. Madam Speaker, I urge all of my colleagues to vote for 
the SECURE Act and, in doing that, fix this tax problem that has 
impacted so many of our Gold Star families across the Commonwealth of 
Virginia and the country.
  Mr. BRADY. Madam Speaker, I yield myself 30 seconds.
  Madam Speaker, how sad it is that some are trying to make this a 
partisan, petty measure.
  The truth is, in 2014, in an original draft of tax reform, this 
provision was included by the Joint Committee on Taxation to simplify 
the Tax Code and to stop tax loopholes. That draft was praised by my 
Democratic colleagues, by Mr. Neal, Mr. Kind, and Mr. Thompson.
  In over 5 years, no one spotted this unintended consequence. When it 
surfaced, Republicans and Democrats came together immediately and 
resolved to not just fix it but to make it retroactive.
  Why make this a petty, partisan issue? Our Gold Star parents deserve 
better.
  Madam Speaker, I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I have no further speakers, and I am 
prepared to close. I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself the balance of my time.
  Madam Speaker, I am proud that, last session, Republicans and 
Democrats came together to pass a retirement security bill not once but 
twice because we knew how important this was. I was chairman, and I was 
proud to help lead that effort.
  This year, I am the proudest leader of the Republicans on the Ways 
and Means Committee to work with Chairman Neal again to make it even 
better to try to help families save.
  But I am disappointed in the process after it left the committee, 
through no fault of Chairman Neal's.
  Just 2 months ago, we heard Democratic lawmakers sit in that seat and 
say they will work to restore the people's faith that government works 
in the public's interest. They said they will pass laws and make sure 
our government acts in the best interests of the American people, not 
entrenched special interests.
  It is unfortunate that every word there was stomped on this week by 
special interest groups that forced our Democratic friends to make 
changes to a bill that would help children and parents with costs 
associated with schools.
  The Tax Cuts and Jobs Act allowed parents to save tax-free for 
schools from kindergarten through 12th grade, and these bipartisan 
reforms that were stripped from this bill would have allowed parents to 
use their education savings dollars for homeschooling and additional 
kindergarten through 12 expenses at public, private, and religious 
schools.
  This is money the families could have used for books, online 
education material, tutoring, AP classes, university exams, and 
educational therapies for students, including for kids with 
disabilities.
  Every parent blessed with a special needs child or one who struggles 
to keep up in school knows the constant search to find the right 
learning tools, the effective therapies, and the trained tutors to help 
their challenged children learn.
  Apparently, for our teachers' union, that was wrong. They moved 
effectively to block the ability of parents to help their kids, whether 
they are gifted, whether they have learning disabilities, whether they 
need that tutor, or whether a child is severely challenged, mentally 
and physically, and needs that help.
  What do we have to fear from parents who want to help their kids and 
use their own dollars for it?
  What would our Nation be if denied the genius of Steven Spielberg who 
overcame dyslexia as a child or CNN anchor Anderson Cooper whose 
parents hired a special instructor to help him overcome his learning 
disabilities?
  Where we would be without business leaders like Steve Jobs, Charles 
Schwab, Richard Branson, or Henry Ford, all with learning disabilities, 
all who have made amazing contributions to our country?
  Blocking these provisions is not proeducation, and there is no way it 
is prochild.

                              {time}  1030

  It is beyond me how an education association can oppose parents using 
their own savings to help their child reach their highest potential. 
But I don't fault them. I fault the lawmakers who are beholden to them, 
who removed these provisions.
  This bill deserves support, and I will strongly support it, but I am 
terribly disappointed.
  Madam Speaker, I yield back the balance of my time.
  Mr. NEAL. Madam Speaker, I yield myself the balance of my time.
  As I close, I want to take a moment to celebrate this truly 
bipartisan process that brought this legislation to the floor today.
  First, I want to thank the Democratic members and Republican members 
of the Committee on Ways and Means, and, in particular, I want to thank 
Mr. Brady for his good work along the way.
  I also want to acknowledge that there is more work to be done in the 
leadership space in terms of retirement savings, and I am hopeful that 
we will be able to do that as well.
  Let me acknowledge Mr. Roe, Mrs. Trahan, Mrs. McMorris Rodgers, Ms. 
Blunt Rochester, Mr. Walberg, Mr. Kennedy, Mr. Banks, Mr. Pocan, Mr. 
Budd, Mrs. Luria, and Mr. Bacon.
  Certainly, as I come down the home stretch in closing, I want to 
acknowledge much of the good work that has taken place by staff members 
on both sides as well. But let me cite on the Democratic side, if I 
could--this was a pretty big bill, and it required a team effort. The 
Democratic staff, including Kara Getz, Andrew Grossman, Beth Bell, 
Aruna Kalyanam, Mary Petrovic, and Lee Slater all did yeomen and

[[Page H4146]]

yeowomen's work in making sure that we would get to this day.
  Madam Speaker, I yield back the balance of my time.
  Ms. JACKSON LEE. Madam Speaker, I rise to speak in support of the 
``Setting Every Community Up for Retirement Enhancement Act of 2019.''
  H.R. 1994, the Setting Every Community Up for Retirement Enhancement 
(SECURE) Act helps Americans to save more for a secure retirement and 
delivering a urgently needed fix for Gold Star military families facing 
drastic tax hikes under the GOP tax scam.
  This legislation:
  Makes it easier for small businesses to offer retirement plans to 
their employees;
  Ensures that hard-working home health care workers can receive 
retirement benefits; and,
  Eliminates the unexpected and unfair enormous tax increases caused by 
the GOP tax scam that were on the survivorship benefits of children in 
Gold Star military families already facing the extraordinary hardship 
of losing a loved one.
  The spouses of our fallen heroes sometimes sign over earned benefits 
to their children to ensure the family receives all benefits.
  This bill will help Gold Star Families who are being taxed unfairly 
by the Trump Tax Cut.
  But because the new Republican tax law brought changes to how 
children's assets are taxed, many Gold Star Families are required to 
pay thousands of additional dollars in taxes on survivor benefits--a 
crushing blow to families who have already given so much to our 
country.
  Prior to the Trump Tax Cut Scam, money given by the military to the 
children of troops who died on duty were taxed at the same rate as 
their surviving parents.
  But under Trump's tax cuts the changes included in the December 2017 
tax law overhaul, those benefits were instead treated the same as 
family estate transfers, which increased the tax rate from no more than 
15 percent to up to 37 percent.
  This change significantly raised the tax bills for many of those 
military families.
  It is important to provide these needed changes to protect Gold Star 
Families, and I look forward to the additional changes that are under 
way to help others hurt by the inequity of the Trump tax hike for the 
very rich.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 389, the previous question is ordered on 
the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further 
consideration of H.R. 1994 is postponed.

                          ____________________