Summary: H.R.4181 — 107th Congress (2001-2002)All Information (Except Text)

There is one summary for H.R.4181. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (04/11/2002)

Vested Worker Protection Act of 2002 - Amends the Internal Revenue Code to mandate that an "applicable pension plan" adopting any amendment that reduces rates of future benefits provide: (1) written notice meeting certain requirements to participants; and (2) that the participants be offered the chance to elect to continue to accrue benefits under the terms in effect immediately before the amendment. Defines "accrued benefit" as an early retirement benefit or retirement-type subsidy meeting certain standards. Defines "applicable pension plan" as a defined benefit plan or an individual account plan with at least 100 active participants meeting certain funding standards and other restrictions.

Requires plans to inform participants of the option of staying under the old terms at least 90 days before the effective date of the amendment. Exempts a plan from the above requirements if its sponsor can show the Secretary of the Treasury that each employer contributing to the plan meets certain distress termination conditions under regulations of the Secretary.

Imposes an excise tax on plans that adopt amendments decreasing benefits and do not let participants elect to continue to accrue benefits under the old terms. Makes the plan liable for such tax in the case of a multiemployer plan, and the employer liable in any other case.