A bill to amend the Internal Revenue Code of 1954 to clarify provisions prohibiting discrimination in vesting standards under plans governing qualified trusts, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide that accruals of benefits or forfeitures in a tax- qualified deferred compensation plan, which would otherwise be deemed discriminatory against certain classes of employees, will not be considered to have taken place if: (1) the total present values of such nonforfeitable benefits attributable to employee-officers or shareholders is less than the total present values of nonforfeitable benefits of all other employees; (2) employee-officers or shareholders having nonforfeitable benefits constitute a reasonable cross section of plan participants; or (3) the deferred compensation plan provides that an employee who has completed at least four years of service has a nonforfeitable right to a specified percentage of the accrued benefit derived from employer contributions.…