H.R.3520 - Retirement Savings and Security Act104th Congress (1995-1996)
|Sponsor:||Rep. Gephardt, Richard A. [D-MO-3] (Introduced 05/23/1996)|
|Committees:||House - Ways and Means; Economic and Educational; Government Reform; Transportation and Infrastructure|
|Latest Action:||06/17/1996 Referred to the Subcommittee on Employer-Employee Relations.|
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Subject — Policy Area:
- Labor and Employment
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Summary: H.R.3520 — 104th Congress (1995-1996)All Bill Information (Except Text)
Introduced in House (05/23/1996)
TABLE OF CONTENTS:
Title I: Revenue Provisions
Subtitle A: Expanded Pension Coverage and
Subtitle B: Expanded Individual Retirement Accounts to
Increase Coverage and Portability
Subtitle C: Other Expansions of Pension Portability
Subtitle D: Conforming Amendments
Title II: ERISA Provisions
Subtitle A: Expanded Pension Coverage and
Subtitle B: Portability
Subtitle C: Enhanced Security
Title III: Additional Retirement Participation and Payment
Options for Federal Employees
Title IV: Conforming Railroad Retirement Benefits with
Retirement Savings and Security Act - Title I: Revenue Provisions - Subtitle A: Expanded Pension Coverage and Simplification - Chapter 1: The NEST and Other Coverage Expansion - Amends the Internal Revenue Code to establish national employee savings trusts (NESTS), 401 (k)-type plans, for employees of small employers.
(Sec. 1102) Makes tax-exempt organizations and Indian governmental instrumentalities eligible section 401(k) pension plan employers.
(Sec. 1103) Sets forth alternative methods for satisfying section 401(k) nondiscrimination tests.
(Sec. 1104) Revises "highly compensated employee" provisions.
(Sec. 1106) Repeals the limitation in the case of an employee with defined benefit and a defined contribution plans from the same employer.
(Sec. 1107) Makes certain defined contribution plan provisions applicable to all permanently disabled employees.
(Sec. 1108) Revises deferred payment provisions with respect to: (1) owner-employee contributions; (2) State and local plan trust requirements; and (3) certain disability payments to former police officers or fire fighters.
Chapter 2: Simplification and Cost Savings - Sets forth a special compensation limitation rule with respect to governmental and multiemployer deferred payment plans. States that a governmental plan's eligibility shall not be affected by its excess benefit arrangement.
(Sec. 1204) Provides special rules for treatment of governmental and tax-exempt organization deferred compensation plans.
(Sec. 1206) Establishes a simplified method for annuity distribution taxation for certain employer plans.
(Sec. 1207) Eliminates five-year income averaging for lump-sum distributions.
(Sec. 1208) Reduces from 59.5 years old to 59 years old the age at which a recipient may receive certain retirement and annuity distributions penalty-free.
(Sec. 1209) Provides a special rule for certain rural cooperative plan distributions.
(Sec. 1211) Treats the social security retirement age as the uniform retirement age for purposes of pension plan non-discrimination requirements.
(Sec. 1214) Eliminates partial termination rules with respect to multiemployer plans.
(Sec. 1217) Increases the tax on prohibited transactions.
Subtitle B: Expanded Individual Retirement Accounts to Increase Coverage and Portability - Chapter 1: Retirement Savings Incentives - Subchapter A: IRA Deduction - Increases individual retirement account (IRA) income limitations. Provides inflation adjustments for deductible amounts and income limitations.
Subchapter B: Nondeductible Tax-Free IRAs - Establishes nondeductible tax-free IRAs.
Chapter 2: Distributions and Investments - Authorizes IRA distributions to be used without the additional ten-percent tax for first home purchases, higher education, financially devastating medical costs, and by the unemployed.
(Sec. 1323) Sets forth provisions with respect to the use of IRA funds to purchase qualifying State prepaid tuition instruments.
Chapter 3: Termination of Certain Provisions - Sets forth IRA-related termination provisions with respect to: (1) inflation adjustments; (2) contributions to special IRA accounts; (3) early withdrawal tax; and (4) increases in specified limitations.
Subtitle C: Other Expansions of Pension Portability - Establishes alternative nondiscrimination rules for certain plans that provide for early participation.
(Sec. 1402) Establishes special rules for certain veterans' reemployment rights, including provisions regarding: (1) contributions; (2) elective deferrals; (3) retroactive adjustments; (4) loan repayment suspensions; and (5) compensation.
(Sec. 1403) Eliminates the special vesting rule for multiemployer plans.
Subtitle D: Conforming Amendments - Makes specified conforming amendments.
Title II: ERISA Provisions - Subtitle A: Expanded Pension Coverage and Simplification - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to establish reporting and fiduciary requirements relating to NESTs designed to ensure participation by low- and moderate-wage workers, who will be able to save up to $5,000 per year tax-deferred, plus receive employer contributions toward retirement).
(Sec. 2002) Eliminates specified ERISA requirements relating to employee benefit plan descriptions and filing of summary plan descriptions and descriptions of material modifications to a plan. Requires filing of annual plan reports by plan administrators. Authorizes the Secretary of Labor to request any documents relating to such plans.
(Sec. 2003) Includes under ERISA purchases of qualified State prepaid tuition program instruments to which specified IRC provisions apply.
Subtitle B: Portability - Directs the Pension Benefit Guaranty Corporation (PBGC) to prescribe specified types of payment rules relating to missing participants for terminated multiemployer plans.
(Sec. 2011) Allows the administrator of a plan not otherwise subject to ERISA plan termination insurance provisions to elect to transfer a missing participant's benefits to the PBGC upon plan termination. Requires such administrator to provide the PBGC with specified information. Directs the PBGC, if such a missing participant's benefits are transferred to it, to pay the appropriate amount to the participant or beneficiary.
(Sec. 2012) Eliminates a special vesting rule for multiemployer plans.
(Sec. 2013) Provides for treatment of certain loans during military service.
Subtitle C: Enhanced Security - Increases the amounts of guarantees for multiemployer plan benefits.
(Sec. 2022) Directs the Secretary of Labor, as chairman of the PBGC board, to transmit to the President and the Congress an annual reversion report providing information on plans from which residual assets were distributed to employers.
(Sec. 2023) Sets forth a full funding limitation for multiemployer plans. Requires a valuation every three years in the case of multiemployer plans.
(Sec. 2024) Increases the maximum civil penalty for certain prohibited transactions.
(Sec. 2025) Revises provisions relating to substantial owner benefits to modify: (1) a phase-in of guarantee; and (2) allocation of assets.
Pension Audit Improvement Act of 1996 - Amends ERISA to repeal certain provisions for limited scope audits.
(Sec. 2033) Requires certain notifications by plan administrators and accountants regarding: (1) irregularities that may have occurred with respect to plans; and (2) termination of an accountant's engagement for auditing services. Sets forth civil penalties for failures to provide the Secretary of Labor with such notifications.
(Sec. 2034) Prescribes additional requirements for qualified public accountants.
(Sec. 2035) Revises certain fiduciary penalties. Modifies a prohibition of assignment or alienation. Changes from mandatory to discretionary: (1) the imposition and the amount of civil penalties for breach of fiduciary responsibility; and (2) certain provisions relating to an applicable recovery amount.
Title III: Additional Retirement Participation and Payment Options for Federal Employees - Requires the Executive Director of the Federal Retirement Thrift Investment Board to prescribe regulations to allow Federal employees to be afforded a reasonable opportunity to make an election to make contributions under the Thrift Savings Plan on the date of commencing service or beginning on the earliest date thereafter that such an election becomes administratively feasible.
(Sec. 3002) Provides for a deferred annuity for a surviving former spouse of a deceased former Federal employee who separated from the service with title to a deferred annuity if such individuals were married to one another prior to the date of separation. Provides for a surviving spouse to elect to receive a certain deferred annuity if a former employee dies after having separated from the service with title to a deferred annuity but before having established a valid claim for annuity.
(Sec. 3003) Provides for the payment of a lump-sum credit for a former spouse of a Federal employee.
Title IV: Conforming Railroad Retirement Benefits with Social Security - Amends the Railroad Retirement Act of 1974 (RRA) with respect to eligibility for and amount of a child's annuity.
(Sec. 4002) Provides for entitlement to spousal annuities despite certain age requirements. Repeals the age requirement for divorced spouses, and provides for entitlement of the divorced spouse where the worker's annuity is not payable.
(Sec. 4003) Provides for RRA benefits equivalent to those under the Social Security Act, with respect to: (1) amounts of continued payment to survivors of waived lump sum benefits; (2) lump sum death benefits; and (3) benefits with respect to service for which certain railroad retirement annuities are not payable.