SECTION 1. PURPOSE

.01 This revenue procedure provides a simplified method for sponsors of master and prototype plans (‘‘M&P’’), regional prototype plans, volume submitter specimen plans, individually designed plans (including volume submitter plans), and simplified employee pension plans (‘‘SEPs’’), that have received favorable opinion, notification, advisory, determination, or ruling letters that take into account the requirements of the Tax Reform Act of 1986, Pub. L. No. 99–514 (‘‘TRA ’86’’), to

amend their plans to use the simplified method of determining highly compensated employees (‘‘HCEs’’) provided in Rev. Proc. 93–42, 1993–2 C.B. 540, by adopting either model plan language or a non-model amendment for approval by the Internal Revenue Service (the ‘‘Service’’).

.02 This revenue procedure makes conforming changes to Rev. Proc. 93– 12, 1993–1 C.B. 479, Rev. Proc. 93– 47, 1993–2 C.B. 578, Rev. Proc. 94– 13, 1994–1 C.B. 566, as modified by Rev. Proc. 95–12, 1995–1 C.B. 508, and Rev. Proc. 95–6, 1995–1 C.B. 452.

.03 This revenue procedure modifies section 4.03 of Rev. Proc. 93–42, relating to plans that must be amended to use the simplified method of determining HCEs.