To amend the Internal Revenue Code of 1986 to simplify the definitions of highly compensated employee and compensation for pension plan purposes, and for other purposes.

Amends the Internal Revenue Code to revise the definition of highly compensated employee for pension plan purposes to mean any employee who receives compensation for a year in excess of $75,000 (adjusted for inflation).

Provides a uniform definition of compensation as wages and earned income. Allows an employer to treat as compensation any amount: (1) which is not includible in gross income under deferred compensation plans of State and local governments and tax-exempt organizations; or (2) which is not allowable as a deduction for retirement savings.

Allows collectively-bargained (union) employees to be included in applying minimum coverage requirements.