Employee Benefits Simplification Act

[AI summary unavailable — showing source text] Employee Benefits Simplification Act - Title I: Nondiscrimination Provisions - Amends the Internal Revenue Code with respect to employee benefit plans. Redefines the term "highly compensated employee" for pension, profit sharing, stock bonus plans, etc. purposes. Makes such employee one who is a five-percent owner or who has compensation from the employer in excess of $50,000. Provides a special rule where no employees are treated as highly compensated. Redefines "compensation" to mean in general the amount of wages shown on the W-2 form for the calendar year. Allows self-employed individuals to use their earned income amount. Includes the following deferrals as those which an employer may elect to take into account when determining salary reduction contributions: (1) deferred compensation plans of State and local government and tax-exempt organizations; (2) contributions to an employee trust; and (3) trusts for benefit payments funded by employer contributions. Permits an employer to elect to use base pay for all purposes, other than indentifying highly compensated employees, in lieu of W-2 compensation. Provides that the cost-of-living adjustment with respect to any calendar year…