To amend the Internal Revenue Code of 1986 to delay until 1990 the implementation of the nondiscrimination rules in section 89 of such Code and to simplify those rules.

Amends the Tax Reform Act of 1986 to delay until 1990 the effective date of the new nondiscrimination requirements for coverage and benefits under certain statutory employee benefit plans (Internal Revenue Code section 89).

Amends Internal Revenue Code provisions relating to such plans to: (1) decrease from 80 percent to 70 percent the coverage requirement under the alternative coverage test; (2) increase from 17 1/2 hours to 35 hours per week the threshold number of work hours triggering requirements with respect to part-time employees; and (3) exempt a number of employee categories from the requirements.