1. Short title This Act may be cited as the CEO and Worker Pension Fairness Act . 2. Nonqualified deferred compensation (a) In general Section 409A of the Internal Revenue Code of 1986 is amended to read as follows: 409A. Nonqualified deferred compensation (a) In general Except as otherwise provided in subsection (c), any compensation which is deferred under a nonqualified deferred compensation plan shall be includible in the gross income of the person who performed the services to which such compensation relates in the calendar year when there is no substantial risk of forfeiture of the rights of such person to such compensation. (b) Definitions For purposes of this section— (1) Substantial risk of forfeiture The rights of a person to compensation shall be treated as subject to a substantial risk of forfeiture only if such person’s rights to such compensation are conditioned upon the future performance of substantial services by any person. Such rights shall not be treated as subject to a substantial risk of forfeiture solely by reason of a covenant not to compete or the occurrence of a condition related to a purpose of the compensation other than the future performance of services. (2) Nonqualified deferred compensation plan The term nonqualified deferred compensation plan means any plan which provides for the deferral of compensation, other than— (A) a qualified employer plan, (B) any bona fide vacation leave, sick leave, compensatory time, disability pay, or death benefit plan, and (C) any other plan or arrangement designated by the Secretary consistent with the purposes of this section. (3) Qualified employer plan The term qualified employer plan means any plan, contract, pension, account, or trust described in section 408(p)(2)(D)(ii) or a simple retirement account (within the meaning of section 408(p)). (4) Plan includes arrangements, etc The term plan includes any agreement or arrangement, including an agreement or arrangement which includes only 1 person. (5) Exception Compensation shall not be treated