CHAIRMAN ROSTENKOWSKI INTRODUCES TAX LEGISLATION INCLUDING PENSION SIMPLIFICATION PROVISIONS

January 14, 1993 TO: PENSION COMMITTEE NO. 2-93 RE: CHAIRMAN ROSTENKOWSKI INTRODUCES TAX LEGISLATION INCLUDING PENSION SIMPLIFICATION PROVISIONS __________________________________________________________ Rep. Rostenkowski, Chairman of the House Ways and Means Committee, has introduced proposed tax legislation, H.R. 13. The bill includes the attached pension simplification provisions, which were passed by Congress but vetoed by the President last fall, including safe harbors for section 401(k) nondiscrimination testing and expansion of the availability of salary reduction simplified employee pensions (SEPs) to employers with 100 or fewer employees. (See Institute Memoranda to Pension Members No. 26-92, Operations Members No. 38-92, and Transfer Agent Advisory Committee No. 59-92, and Tax Members No. 72-92, Pension Members No. 31-92, Accounting/Treasurers Members No. 40-92, Closed-End Fund Members No. 43-92, Operations Members No. 45-92, Unit Investment Trust Members No. 55-92, International Members No. 24- 92 and Transfer Agent Advisory Committee No. 68-92, dated October 8, 1992 and November 4, 1992, respectively.) H.R. 13 does not include provisions relating to IRAs or technical corrections to the Unemployment Compensation Amendments of 1992. We will keep you informed of further developments. Kathy D. Ireland Associate Counsel - Pension Attachments