Text: H.R.6290 — 115th Congress (2017-2018)All Information (Except Text)

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Introduced in House (06/28/2018)

 
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6290 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6290

To amend the Internal Revenue Code of 1986 to provide for reporting and 
disclosure by State and local public employee retirement pension plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2018

 Mr. Nunes (for himself, Mr. Calvert, Mr. Stewart, and Mr. McClintock) 
 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 provide for reporting and 
disclosure by State and local public employee retirement pension plans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Employee Pension Transparency 
Act''.

SEC. 2. REPORTING REQUIREMENT FOR CERTAIN STATE OR LOCAL GOVERNMENT 
              RETIREMENT PLANS AS CONDITION FOR STATE AND LOCAL BONDS 
              TAX EXEMPTION.

    (a) In General.--Subpart B of part IV of subchapter B of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 149A. REPORTING WITH RESPECT TO CERTAIN STATE OR LOCAL 
              GOVERNMENT RETIREMENT PLANS.

    ``(a) In General.--In the case of a failure to satisfy the report 
requirements of subsection (c) with respect to any plan maintained with 
respect to an employee of a State, a political subdivision of a State, 
or any agency or instrumentality of a State or political subdivision of 
a State, section 103 shall not apply to the interest on any bond issued 
during the noncompliance period by any such State or political 
subdivision.
    ``(b) Noncompliance Period.--For purposes of this section, the term 
`noncompliance period' means, with respect to any State or political 
subdivision, the period beginning on the date that the Secretary 
notifies such State or political subdivision of a failure to satisfy 
the requirements of subsection (c) with respect to a plan and ending on 
the date that such failure is corrected (as determined by the 
Secretary).
    ``(c) Annual Report Requirements.--
            ``(1) In general.--The requirements of this subsection 
        shall not be treated as met unless, not later than 210 days 
        after the end of each plan year beginning on or after January 
        1, 2019, the plan sponsor of a State or local government 
        applicable retirement plan files with the Secretary (in such 
        form and manner as shall be prescribed by the Secretary) a 
        report setting forth the following information with respect to 
        the plan, as determined by the plan sponsor as of the last day 
        of such plan year:
                    ``(A) A statement (determined according to the 
                plan's funding method) of the plan liability, the value 
                of plan assets, the amount by which (if any) the plan 
                liability exceeds the value of plan assets, and the 
                funding percentage of the plan.
                    ``(B) A schedule of all contributions by the plan 
                sponsor for the plan year that indicates which 
                contributions are taken into account under subparagraph 
                (A).
                    ``(C) Projections for each of the 60 subsequent 
                plan years of the cash flows associated with the plan 
                liability.
                    ``(D) A statement of the actuarial assumptions used 
                for the plan year, including the rate of return on 
                investment of plan assets and assumptions as to such 
                other matters as the Secretary may prescribe by 
                regulation.
                    ``(E) The number of each of the following types of 
                participant:
                            ``(i) Separated from service and receiving 
                        benefits.
                            ``(ii) Not described in clause (i), 
                        separated from service, and entitled to future 
                        benefits.
                            ``(iii) Accruing and receiving benefits.
                            ``(iv) Not described in clause (iii) and 
                        accruing benefits.
                    ``(F) A statement of the plan's investment returns 
                (including the rate of return) for the plan year and 
                the 5 preceding plan years.
                    ``(G) Pursuant to such regulations as the Secretary 
                shall prescribe, an explanation of the plan's funding 
                policy, and a statement of the degree to which, and 
                manner in which, the plan sponsor expects to eliminate 
                any unfunded plan liability for the plan year and the 
                extent to which the plan sponsor has followed the 
                plan's funding policy for each of the preceding 5 plan 
                years.
                    ``(H) A statement of the amount of any pension 
                obligation bonds outstanding.
                    ``(I) A statement of the current cost of the plan 
                for the plan year determined according to the plan's 
                funding method.
                    ``(J) A statement of the plan's administrative and 
                investment expenses.
            ``(2) Supplement to report with prescribed valuation and 
        interest rates.--
                    ``(A) In general.--In the case of an annual report 
                under which--
                            ``(i) plan assets are not valued at fair 
                        market value,
                            ``(ii) any interest rate used to determine 
                        the value of plan liabilities under 
                        subparagraph (A) or (I) of paragraph (1) is not 
                        an interest rate described in subparagraph (B), 
                        or
                            ``(iii) the present value of an accrued 
                        benefit is not determined as described in 
                        subparagraph (C),
                the requirements of this subsection shall not be 
                treated as met unless the plan sponsor also includes in 
                such annual report the information described in 
                subparagraphs (A) and (I) of paragraph (1), determined 
                as of the last day of such plan year by valuing plan 
                assets at fair market value, by using the interest 
                rates described in subparagraph (B) to value 
                liabilities, and by determining the present value of 
                accrued benefits as described in subparagraph (C).
                    ``(B) Interest rates based on treasury spot rate 
                yield curve.--
                            ``(i) In general.--The interest rates 
                        described in this subparagraph are, with 
                        respect to any day, the rates of interest which 
                        shall be determined by the Secretary for such 
                        day on the basis of the Treasury spot rate 
                        yield curve for such day.
                            ``(ii) Treasury spot rate yield curve.--For 
                        purposes of this subparagraph, the term 
                        `Treasury spot rate yield curve' means, with 
                        respect to any day, the spot rate for such day 
                        on interest-bearing obligations of the United 
                        States.
                    ``(C) Determining present value of accrued 
                benefits.--The present value of an accrued benefit is 
                determined as described in this subparagraph if--
                            ``(i) it is determined by discounting its 
                        future cash flows in accordance with 
                        subparagraph (B), and
                            ``(ii) the present value of all benefits 
                        accrued for each participant is calculated as 
                        of the last day of such plan year using the 
                        unit credit funding method.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) State or local government applicable retirement 
        plan.--The term `State or local government applicable 
        retirement plan' means any plan described in clause (i), (ii), 
        (iii), or (iv) of section 219(g)(5)(A) (other than a defined 
        contribution plan (within the meaning of section 414(i))), 
        which is maintained by a State, a political subdivision of a 
        State, or any agency or instrumentality of a State or political 
        subdivision of a State.
            ``(2) Funding percentage.--The term `funding percentage' 
        for a plan year means the ratio (expressed as a percentage) 
        which--
                    ``(A) the value of plan assets as of the end of the 
                plan year, bears to
                    ``(B) the plan liability of the plan for the plan 
                year.
            ``(3) Plan liability.--The term `plan liability' of a plan 
        for a plan year means the present value of all benefits accrued 
        or earned under the plan as of the last day of the plan year.
            ``(4) Current cost.--The term `current cost' of a plan for 
        a plan year means the present value as of the end of the plan 
        year of all benefits accrued or earned under the plan during 
        the plan year.
            ``(5) Plan sponsor.--The term `plan sponsor' means, in 
        connection with a State or local government applicable 
        retirement plan, the State, political subdivision of a State, 
        or agency or instrumentality of a State or a political 
        subdivision of a State which establishes or maintains the plan. 
        For purposes of report filing requirements under this section, 
        such term shall include the administrator of the plan on behalf 
        of the plan sponsor in the case of a plan which is not 
        administered by the plan sponsor.
            ``(6) Participant.--
                    ``(A) In general.--The term `participant' means, in 
                connection with a State or local government applicable 
                retirement plan, an individual--
                            ``(i) who is an employee or former employee 
                        of a State, political subdivision of a State, 
                        or agency or instrumentality of a State or a 
                        political subdivision of a State which is the 
                        plan sponsor of such plan, and
                            ``(ii) who is or may become eligible to 
                        receive a benefit of any type from such plan or 
                        whose beneficiaries may be eligible to receive 
                        any such benefit.
                    ``(B) Beneficiary.--The term `beneficiary' means a 
                person designated by a participant, or by the terms of 
                the plan, who is or may become entitled to a benefit 
                thereunder.
            ``(7) Plan year.--The term `plan year' means, in connection 
        with a plan, the calendar or fiscal year on which the records 
        of the plan are kept.
            ``(8) State.--The term `State' includes any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, American Samoa, 
        Guam, and the Commonwealth of the Northern Mariana Islands.
            ``(9) Fair market value.--The term `fair market value' has 
        the meaning of such term under section 430(g)(3)(A) (without 
        regard to section 430(g)(3)(B)).
    ``(e) Model Reporting Statement.--The Secretary shall develop model 
reporting that plan sponsors of State or local government employee 
pension plans may elect to use for purposes of complying with 
requirements of such subsections (c).
    ``(f) Transparency of Information Filed.--Reports filed under this 
section shall be public records open to the inspection of the public, 
and the Secretary shall create and maintain a searchable public website 
on which the Secretary shall post such reports not later than 60 days 
after receipt.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter B of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 149A. Reporting with respect to certain State or local 
                            government retirement plans.''.

SEC. 3. GENERAL PROVISIONS AND RULES OF CONSTRUCTION.

    (a) Limitations on Federal Responsibilities Relating to Plan 
Obligations and Liabilities.--The United States shall not be liable for 
any obligation related to any current or future shortfall in any State 
or local government applicable retirement plan. Nothing in this Act (or 
any amendment made by this Act) or any other provision of law shall be 
construed to provide Federal Government funds to diminish or meet any 
current or future shortfall in, or obligation of, any State or local 
government applicable retirement plan. The preceding sentence shall 
also apply to the Federal Reserve.
    (b) No Federal Funding Standards.--Nothing in this Act (or any 
amendment made by this Act) shall be construed to alter existing 
funding standards for State or local government applicable retirement 
plans or to require Federal funding standards for such plans.
    (c) Definitions.--Terms used in this section which are also used in 
section 149A of the Internal Revenue Code of 1986 shall have the same 
meaning as when used in such section.
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