Sec. 309. Permit plans to use base pay or rate of pay calculation
152 words·~1 min read·
/bill/115/s/3781/is/section-309·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than December 31, 2019, the Secretary of the Treasury shall modify Treasury Regulation section 1.414(s)–1(d)(3) to facilitate the use of the safe harbors in sections 401(k)(12), 401(k)(13), 401(k)(15), 401(m)(11), 401(m)(12), and 401(m)(13) of the Internal Revenue Code of 1986, and in Treasury Regulation section 1.401(a)(4)–3(b), by plans which use base pay or rate of pay in determining contributions or benefits. Such facilitation shall include increased flexibility in meeting the definition in section 414(s) of such Code in situations where the amount of overtime compensation payable in a year can vary significantly.
The Secretary of the Treasury may make any modification under subsection
(a)inapplicable to plans with respect to which, on a consistent basis, overtime is a major component of a substantial portion of the employees eligible to participate in the plan who are not highly compensated employees (as defined in section 414(q) of the Internal Revenue Code of 1986).