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H.R.1590
Retirement Security Act of 1999 (Introduced in the
House)
SEC. 403. MODIFICATION OF GOVERNMENT PENSION OFFSET .
(a) WIFE'S INSURANCE BENEFITS- Section 202(b)(4)(A) of the Social Security
Act (42 U.S.C. 402(b)(4)(A)) is amended--
(1) by inserting `the amount (if any) by which the sum of such benefit
(before reduction under this paragraph) and' after `two-thirds of';
and
(2) by inserting `exceeds the amount described in subsection (z) for
such month,' before `if'.
(b) HUSBAND'S INSURANCE BENEFITS- Section 202(c)(2)(A) of such Act (42
U.S.C. 402(c)(2)(A)) is amended--
(1) by inserting `the amount (if any) by which the sum of such benefit
(before reduction under this paragraph) and' after `two-thirds of';
and
(2) by inserting `exceeds the amount described in subsection (z) for
such month,' before `if'.
(c) WIDOW'S INSURANCE BENEFITS- Section 202(e)(7)(A) of such Act (42
U.S.C. 402(e)(7)(A)) is amended--
(1) by inserting `the amount (if any) by which the sum of such benefit
(before reduction under this paragraph) and' after `two-thirds of';
and
(2) by inserting `exceeds the amount described in subsection (z) for
such month,' before `if'.
(d) WIDOWER'S INSURANCE BENEFITS- Section 202(f)(2)(A) of such Act (42
U.S.C. 402(f)(2)(A)) is amended--
(1) by inserting `the amount (if any) by which the sum of such benefit
(before reduction under this paragraph) and' after `two-thirds of';
and
(2) by inserting `exceeds the amount described in subsection (z) for
such month,' before `if'.
(e) MOTHER'S AND FATHER'S INSURANCE BENEFITS- Section 202(g)(4)(A) of such
Act (42 U.S.C. 402(g)(4)(A)) is amended--
(1) by inserting `the amount (if any) by which the sum of such benefit
(before reduction under this paragraph) and' after `two-thirds of';
and
(2) by inserting `exceeds the amount described in subsection (z) for
such month,' before `if'.
(f) AMOUNT DESCRIBED- Section 202 of such Act (42 U.S.C. 402) is amended
by adding at the end the following:
`(z) The amount described in this subsection is, for months in each
12-month period beginning in December of 1999, and each succeeding calendar
year, the greater of--
`(2) the amount applicable for months in the preceding 12-month period,
increased by the cost-of-living adjustment for such period determined for an
annuity under section 8340 of title 5, United States Code (without regard to
any other provision of law).'
(g) LIMITATIONS ON REDUCTIONS IN BENEFITS- Section 202 of such Act (42
U.S.C. 402), as amended by subsection (f), is amended by adding at the end the
following:
`(aa) For any month after December 1999, in no event shall an individual
receive a reduction in a benefit under subsection (b)(4)(A), (c)(2)(A),
(e)(7)(A), (f)(2)(A), or (g)(4)(A) for the month that is more than the
reduction in such benefit that would have applied for such month under such
subsections as in effect on December 1, 1999.'
(h) EFFECTIVE DATE- The amendments made by this section shall apply with
respect to monthly insurance benefits payable under title II of the Social
Security Act for months after December 1999.
SEC. 404. PERIODS OF FAMILY AND MEDICAL LEAVE TREATED AS HOURS OF SERVICE
FOR PENSION PARTICIPATION AND
VESTING.
(a) AMENDMENTS OF INTERNAL REVENUE CODE-
(A) IN GENERAL- Paragraph (3) of section 410(a) (relating to minimum
participation standards) is amended by adding at the end the following new
subparagraph:
`(E) FAMILY AND MEDICAL LEAVE TREATED AS SERVICE-
`(i) IN GENERAL- For purposes of this subsection, in the case of an
individual who is absent from work on leave required to be given to such
individual under the Family and Medical Leave Act of 1993, the plan
shall treat as hours of service--
`(I) the hours of service which otherwise would normally have been
credited to such individual but for such absence, or
`(II) in any case in which the plan is unable to determine the
hours described in subclause (I), 8 hours of service per day of
absence.
`(ii) YEAR TO WHICH HOURS ARE CREDITED- The hours described in
clause (i) shall be treated as hours of service as provided in this
subparagraph--
`(I) only in the year in which the absence from work begins, if
section 411(a)(5)(E)(ii)(I) requires hours to be credited to the year
in which the absence from work begins, or
`(II) in any other case, in the immediately following
year.'
(B) COORDINATION WITH TREATMENT OF MATERNITY AND PATERNITY ABSENCES
UNDER BREAK IN SERVICE RULES- Subparagraph (E) of section 410(a)(5) is
amended--
(i) by inserting `NOT UNDER FAMILY AND MEDICAL LEAVE ACT OF 1993'
after `ABSENCES' in the heading, and
(ii) by adding at the end of clause (i) the following new sentence:
`The preceding sentence shall apply to an absence from work only if no
part of such absence is required to be given under the Family and
Medical Leave Act of 1993.'
(A) IN GENERAL- Paragraph (5) of section 411(a) (relating to minimum
vesting standards) is amended by adding at the end the following new
subparagraph:
`(E) FAMILY AND MEDICAL LEAVE TREATED AS SERVICE-
`(i) IN GENERAL- For purposes of this subsection, in the case of an
individual who is absent from work on leave required to be given to such
individual under the Family and Medical Leave Act of 1993, the plan
shall treat as hours of service--
`(I) the hours of service which otherwise would normally have been
credited to such individual but for such absence, or
`(II) in any case in which the plan is unable to determine the
hours described in subclause (I), 8 hours of service per day of
absence.
`(ii) YEAR TO WHICH HOURS ARE CREDITED- The hours described in
clause (i) shall be treated as hours of service as provided in this
subparagraph--
`(I) only in the year in which the absence from work begins, if
the participant's rights in his accrued benefit derived from employer
contributions are to any extent not nonforfeitable
and the participant would have a year of service solely because the period of
absence is treated as hours of service as provided in clause (i); or
`(II) in any other case, in the immediately following
year.'
(B) COORDINATION WITH TREATMENT OF MATERNITY AND PATERNITY ABSENCES
UNDER BREAK IN SERVICE RULES- Subparagraph (E) of section 411(a)(6) is
amended--
(i) by inserting `NOT UNDER FAMILY AND MEDICAL LEAVE ACT OF 1993'
after `ABSENCES' in the heading, and
(ii) by adding at the end of clause (i) the following new sentence:
`The preceding sentence shall apply to an absence from work only if no
part of such absence is required to be given under the Family and
Medical Leave Act of 1993.'
(A) IN GENERAL- Paragraph (3) of section 202(a) of the Employee
Retirement Income Security Act of 1974 (relating to minimum participation
standards) is amended by adding at the end the following new
subparagraph:
`(E)(i) For purposes of this subsection, in the case of an individual who
is absent from work on leave required to be given to such individual under the
Family and Medical Leave Act of 1993, the plan shall treat as hours of
service--
`(I) the hours of service which otherwise would normally have been
credited to such individual but for such absence, or
`(II) in any case in which the plan is unable to determine the hours
described in subclause (I), 8 hours of service per day of absence.
`(ii) The hours described in clause (i) shall be treated as hours of
service as provided in this subparagraph--
`(I) only in the year in which the absence from work begins, if section
203(b)(2)(E)(ii)(I) requires hours to be credited to the year in which the
absence from work begins, or
`(II) in any other case, in the immediately following year.'
(B) COORDINATION WITH TREATMENT OF MATERNITY AND PATERNITY ABSENCES
UNDER BREAK IN SERVICE RULES- Subparagraph (A) of section 202(b)(5) of
such Act is amended by adding at the end of clause (i) the following new
sentence: `The preceding sentence shall apply to an absence from work only
if no part of such absence is required to be given under the Family and
Medical Leave Act of 1993.'
(A) IN GENERAL- Paragraph (2) of section 203(b) of such Act (relating
to minimum vesting standards) is amended by adding at the end the
following new subparagraph:
`(E)(i) For purposes of this subsection, in the case of an individual who
is absent from work on leave required to be given to such individual under the
Family and Medical Leave Act of 1993, the plan shall treat as hours of
service--
`(I) the hours of service which otherwise would normally have been
credited to such individual but for such absence, or
`(II) in any case in which the plan is unable to determine the hours
described in subclause (I), 8 hours of service per day of absence.
`(ii) The hours described in clause (i) shall be treated as hours of
service as provided in this subparagraph--
`(I) only in the year in which the absence from work begins, if the
participant's rights in his accrued benefit derived from employer
contributions are to any extent not nonforfeitable and the participant would
have a year of service solely because the period of absence is treated as
hours of service as provided in clause (i); or
`(II) in any other case, in the immediately following year.'
(B) COORDINATION WITH TREATMENT OF MATERNITY AND PATERNITY ABSENCES
UNDER BREAK IN SERVICE RULES- Clause (i) of section 203(b)(3)(E) of such
Act is amended by adding at the end of clause (i) the following new
sentence: `The preceding sentence shall apply to an absence from work only
if no part of such absence is required to be given under the Family and
Medical Leave Act of 1993.'
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to plan years beginning after December 31,
1999.
(2) APPLICATION TO CURRENT EMPLOYEES- The amendments made by this
section shall not apply to any employee who does not have at least 1 hour of
service in any plan year beginning after December 31, 1999.
SEC. 405. PENSION INTEGRATION
RULES.
(a) APPLICABILITY OF NEW INTEGRATION RULES EXTENDED TO ALL EXISTING
ACCRUED BENEFITS- Notwithstanding subsection (c)(1) of section 1111 of the Tax
Reform Act of 1986 (relating to effective date of application of
nondiscrimination rules to integrated plans) (100 Stat. 2440), effective for
plan years beginning after the date of the enactment of this Act, the
amendments made by subsection (a) of such section 1111 shall also apply to
benefits attributable to plan years beginning on or before December 31,
1988.
(b) INTEGRATION DISALLOWED FOR SIMPLIFIED EMPLOYEE PENSIONS-
(1) IN GENERAL- Subparagraph (D) of section 408(k)(3) of the Internal
Revenue Code of 1986 (relating to permitted disparity under rules limiting
discrimination under simplified employee pensions) is repealed.
(2) CONFORMING AMENDMENT- Subparagraph (C) of such section 408(k)(3) is
amended by striking `and except as provided in subparagraph (D),'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
with respect to taxable years beginning on or after January 1, 1999.
(c) EVENTUAL REPEAL OF INTEGRATION RULES- Effective for plan years
beginning on or after January 1, 2004--
(1) subparagraphs (C) and (D) of section 401(a)(5) of the Internal
Revenue Code of 1986 (relating to pension integration exceptions under
nondiscrimination requirements for qualification) are repealed, and
subparagraph (E) of such section 401(a)(5) is redesignated as subparagraph
(C); and
(2) subsection (l) of section 401 of such Code (relating to
nondiscriminatory coordination of defined contribution plans with OASDI) is
repealed.
SEC. 406. DIVISION OF PENSION
BENEFITS UPON DIVORCE.
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986- Section 414(p) of the
Internal Revenue Code of 1986 (relating to qualified domestic relations order
defined) is amended by redesignating paragraph (12) as paragraph (13) and by
adding at the end the following new paragraph:
`(12) SPECIAL RULES AND PROCEDURES FOR DOMESTIC RELATIONS ORDERS NOT
SPECIFYING DIVISION OF PENSION
BENEFITS-
`(i) a domestic relations order (including an annulment or other
order of marital dissolution) relates to provision of marital property
with respect to a marriage of at least 5 years duration between the
participant and the former spouse,
`(ii)(I) such order (and any prior order) does not specifically
provide that pension
benefits were considered by the parties and no division is intended,
and
`(II) such order is not a qualified domestic relations order without
regard to this paragraph and there is no other prior qualified domestic
relations order issued in connection with the dissolution of the
marriage to which such order relates, and
`(iii) the former spouse notifies a plan within the period
prescribed under subparagraph (C) that the former spouse is entitled to
benefits under the plan in accordance with the provisions of this
paragraph,
then such domestic relations order shall be treated as a qualified
domestic relations order for purposes of this subsection and section
401(a)(13).
`(i) IN GENERAL- Any domestic relations order treated as a qualified
domestic relations order under subparagraph (A) shall be treated as
specifying that the former spouse is entitled to the applicable
percentage of the marital share of the participant's accrued
benefit.
`(ii) MARITAL SHARE- For purposes of clause (i), the marital share
of a participant's accrued benefit is an amount equal to the product
of--
`(I) such benefit as of the date of the first payment under the
plan (to the extent such accrued benefit is vested at the date of the
divorce or any later date), and
`(II) a fraction the numerator of which is the period of
participation by the participant under the plan starting with the date
of marriage and ending with the date of divorce, and the denominator
of which is the total period of participation by the participant under
the plan.
`(iii) APPLICABLE PERCENTAGE- For purposes of this subparagraph, the
applicable percentage is--
`(I) except as provided in subclause (II), 50 percent,
and
`(II) in the case of a participant who fails to provide the plan
with notice of a domestic relations order within the time prescribed
under subparagraph (C), 67 percent.
`(C) NOTICE REQUIREMENTS-
`(i) NOTICE BY EMPLOYEE- Each employee who is a participant in a
pension plan shall, within
60 days after the dissolution of the marriage of the
employee--
`(I) notify the plan administrator of the plan of such
dissolution, and
`(II) provide to the plan administrator a copy of the domestic
relations order (including an annulment or other order of marital
dissolution) providing for such dissolution and the
last known address of the employee's former spouse.
`(ii) NOTICE BY PLAN ADMINISTRATOR- Each plan administrator
receiving notice under clause (i) shall promptly notify the former
spouse of a participant of such spouse's rights under this paragraph,
including the time period within which such spouse is required to notify
the plan of the spouse's intention to claim rights under this
paragraph.
`(iii) NOTICE BY FORMER SPOUSE- A former spouse may notify the plan
administrator of such spouse's intent to claim rights under this
paragraph at any time before the last day of the 1-year period following
receipt of notice under clause (ii).
`(iv) COORDINATION WITH PLAN PROCEDURES- The determination under
paragraph (6)(A)(ii) with respect to a domestic relations order to which
this paragraph applies shall be made within a reasonable period of time
after the plan administrator receives the notice described in clause
(iii).
`(D) INTERPRETATION AS QUALIFIED DOMESTIC RELATIONS ORDER- Each plan
shall establish reasonable rules for determining how any such deemed
domestic relations order is to be interpreted under the plan so as to
constitute a qualified domestic relations order that satisfies paragraphs
(2) through (4) (and a copy of such rules shall be provided to such former
spouse promptly after delivery of the divorce decree). Such
rules--
`(i) may delay the effect of such an order until the earlier of the
date the participant is fully vested or has terminated
employment,
`(ii) may allow the former spouse to be paid out
immediately,
`(iii) shall permit the former spouse to be paid not later than the
earliest retirement age under the plan or the participant's
death,
`(iv) may require the submitter of the divorce decree to present a
marriage certificate or other evidence of the marriage date to assist in
benefit calculations, and
`(v) may conform to the rules applicable to qualified domestic
relations orders regarding form or type of benefit.'
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974-
Section 206(d)(3) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1056(d)(3)) is amended by redesignating subparagraph (N) as
subparagraph (O) and by inserting after subparagraph (M) the following new
subparagraph:
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