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H.R. 1740 (ih); To amend the Internal Revenue Code of 1986 to modify the application of the pension nondiscrimination ru

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H.R. 1740 (ih); To amend the Internal Revenue Code of 1986 to modify the application of the pension nondiscrimination ru Powered By Docstoc
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105TH CONGRESS 1ST SESSION

H. R. 1740

To amend the Internal Revenue Code of 1986 to modify the application of the pension nondiscrimination rules to governmental plans.

IN THE HOUSE OF REPRESENTATIVES
MAY 22, 1997 Mr. PORTMAN (for himself, Mr. CARDIN, Mr. ENSIGN, Mr. MATSUI, Mr. CRANE, Mr. ENGLISH of Pennsylvania, Mr. HOUGHTON, Mrs. JOHNSON of Connecticut, Mrs. KENNELLY of Connecticut, Mr. KLECZKA, Mr. LEVIN, Mr. LEWIS of Georgia, Mr. MCNULTY, Mr. RAMSTAD, Mr. THOMAS, Mr. WELLER, Mr. HULSHOF, Mr. HOBSON, Mr. POMEROY, Mr. SAWYER, Mr. ABERCROMBIE, Mr. BATEMAN, Mr. BLUMENAUER, Mrs. CUBIN, Mr. FROST, Mr. GOODE, Mr. HOYER, Ms. KILPATRICK, Mr. MANZULLO, Ms. MCCARTHY of Missouri, Mr. MORAN of Virginia, Mr. OLVER, Mr. PICKETT, and Mr. STUMP) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL
To amend the Internal Revenue Code of 1986 to modify the application of the pension nondiscrimination rules to governmental plans. 1 Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,

2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
TION
SECTION 1. MODIFICATIONS TO NONDISCRIMINATION AND MINIMUM PARTICIPATION RULES WITH RESPECT TO GOVERNMENTAL PLANS.

(a) GENERAL NONDISCRIMINATION RULES.— (1) NONDISCRIMINATION

AND

PARTICIPA-

REQUIREMENTS.—

Section 401(a)(5) of the Internal Revenue Code of 1986 (relating to qualified pension, profit-sharing, and stock bonus plans) is amended by adding at the end the following: ‘‘(G) GOVERNMENTAL
PLANS.—Para-

graphs (3) and (4) shall not apply to a governmental plan (within the meaning of section 414(d)).’’. (2) ADDITIONAL
PARTICIPATION REQUIRE-

MENTS.—Section

401(a)(26)(H) of such Code (relat-

ing to additional participation requirements) is amended to read as follows: ‘‘(H) EXCEPTION
PLANS.—This FOR GOVERNMENTAL

paragraph shall not apply to a

governmental plan (within the meaning of section 414(d)).’’. (3) MINIMUM
PARTICIPATION STANDARDS.—

Section 410(c)(2) of such Code (relating to application of participation standards to certain plans) is amended to read as follows:
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3 1 2 3 4 5 6 7 8 ‘‘(2) A plan described in paragraph (1) shall be treated as meeting the requirements of this section for purposes of section 401(a), except that in the case of a plan described in subparagraph (B), (C), or (D) of paragraph (1), this paragraph shall only apply if such plan meets the requirements of section 401(a)(3) (as in effect on September 1, 1974).’’. (b) PARTICIPATION STANDARDS
OR FOR

QUALIFIED

9 CASH

DEFERRED

ARRANGEMENTS.—Section

10 401(k)(3) of the Internal Revenue Code of 1986 (relating 11 to application of participation and discrimination stand12 ards) is amended by adding at the end the following: 13 14 15 16 17 18 19 20 21 (c) ‘‘(G)(i) The requirements of subparagraph (A)(i) and (C) shall not apply to a governmental plan (within the meaning of section 414(d)). ‘‘(ii) The requirements of subsection

(m)(2) (without regard to subsection (a)(4)) shall apply to any matching contribution of a governmental plan (as so defined).’’. NONDISCRIMINATION RULES
FOR

SECTION

22 403(b) PLANS.—Section 403(b)(12) of the Internal Reve23 nue Code of 1986 (relating to nondiscrimination require24 ments) is amended by adding at the end the following:

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4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ‘‘(C) GOVERNMENTAL
PLANS.—For

pur-

poses of paragraph (1)(D), the requirements of subparagraph (A)(i) shall not apply to a governmental plan (within the meaning of section 414(d)).’’. (d) EFFECTIVE DATE.— (1) IN
GENERAL.—The

amendments made by

this section apply to taxable years beginning on or after the date of enactment of this Act. (2) TREATMENT
FOR YEARS BEGINNING BE-

FORE DATE OF ENACTMENT.—A

governmental plan

(within the meaning of section 414(d) of the Internal Revenue Code of 1986) shall be treated as satisfying the requirements 401(a)(26), of sections 401(a)(3), 403

401(a)(4),

401(k),

401(m),

(b)(1)(D) and (b)(12), and 410 of such Code for all taxable years beginning before the date of enactment of this Act.

Æ

•HR 1740 IH


				
DOCUMENT INFO
Description: 105th Congress H.R. 1740 (ih): To amend the Internal Revenue Code of 1986 to modify the application of the pension nondiscrimination rules to governmental plans. [Introduced in House] 1997 - 1998