A bill to amend the internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to clarify that federally recognized Indian tribal governments are to be regulated under the same government employer rules and procedures that apply to Federal, State, and other local government employers with regard to the establishment and maintenance of employee benefit plans.

Summary: Governmental Pension Plan Equalization Act of 2005 - Amends the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act of 1974 (ERISA) to specify that rules for governmental plans also apply to plans established for their employees by Indian tribal governments or their subdivisions, agencies, instrumentalities, or entities which they wholly own or control.

Amends the IRC and the Taxpayer Relief Act of 1997 to extend to all governmental plans the prohibition against (moratorium on) application to State and local plans of certain nondiscrimination rules (requiring that the plan satisfy minimum participation standards and not discriminate in favor of highly compensated employees).

Subjects tribal governments to the same defined benefit plan rules and regulations applied to State and other local governments, their police and firefighters.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Governmental Pension Plan 
Equalization Act of 2005''.

SEC. 2. DEFINITION OF ``GOVERNMENTAL PLAN''.

    (a) Amendment to Internal Revenue Code of 1986.--Section 414(d) of 
the Internal Revenue Code of 1986 (definition of governmental plan) is 
amended by adding at the end the following: ``The term `governmental 
plan' includes a plan established or maintained for its employees by an 
Indian tribal government (as defined in section 7701(a)(40)), a 
subdivision of an Indian tribal government (determined in accordance 
with section 7871(d)), an agency instrumentality (or subdivision) of an 
Indian tribal government, or an entity established under Federal, 
State, or tribal law which is wholly owned or controlled by any of the 
foregoing.''
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 3(32) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(32)) is amended by adding at the end the following: 
``The term `governmental plan' includes a plan established or 
maintained for its employees by an Indian tribal government (as defined 
in section 7701(a)(40)), a subdivision of an Indian tribal government 
(determined in accordance with section 7871(d)), an agency 
instrumentality (or subdivision) of an Indian tribal government, or an 
entity established under Federal, State, or tribal law that is wholly 
owned or controlled by any of the foregoing.''

SEC. 3. EXTENSION TO ALL GOVERNMENTAL PLANS OF CURRENT MORATORIUM ON 
              APPLICATION OF CERTAIN NONDISCRIMINATION RULES APPLICABLE 
              TO STATE AND LOCAL PLANS.

    (a) In General.--
            (1) Subparagraph (G) of section 401(a)(5) and subparagraph 
        (G) of section 401(a)(26) of the Internal Revenue Code of 1986 
        are each amended by striking ``section 414(d))'' and all that 
        follows and inserting ``section 414(d)).''.
            (2) Subparagraph (G) of section 401(k)(3) of such Code and 
        paragraph (2) of section 1505(d) of the Taxpayer Relief Act of 
        1997 (Public Law 105-34; 111 Stat. 1063) are each amended by 
        striking ``maintained by a State or local government or 
        political subdivision thereof (or agency or instrumentality 
        thereof)''.
    (b) Conforming Amendments.--
            (1) The heading of subparagraph (G) of section 401(a)(5) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``State and local governmental'' and inserting 
        ``Governmental''.
            (2) The heading of subparagraph (G) of section 401(a)(26) 
        of such Code is amended by striking ``Exception for State and 
        local'' and inserting ``Exception for''.
            (3) Section 401(k)(3)(G) of such Code is amended by 
        inserting ``Governmental plan.--'' after ``(G)''.

SEC. 4. CLARIFICATION THAT TRIBAL GOVERNMENTS ARE SUBJECT TO THE SAME 
              DEFINED BENEFIT PLAN RULES AND REGULATIONS APPLIED TO 
              STATE AND OTHER LOCAL GOVERNMENTS, THEIR POLICE AND 
              FIREFIGHTERS.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) Police and firefighters.--Subparagraph (H) section 
        415(b)(2) of the Internal Revenue Code of 1986 (defining 
        participant) is amended--
                    (A) in clause (i), by striking ``State or political 
                subdivision'' and inserting ``State, Indian tribal 
                government (as defined in section 7701(a)(40)), or any 
                political subdivision''; and
                    (B) in clause (ii)(I), by striking ``State or 
                political subdivision'' each place it appears and 
                inserting ``State, Indian tribal government (as so 
                defined), or any political subdivision''.
            (2) State and local government plans.--
                    (A) In general.--Subparagraph (A) of section 
                415(b)(10) of such Code (relating to limitation to 
                equal accrued benefit) is amended--
                            (i) by inserting ``, Indian tribal 
                        government (as defined in section 
                        7701(a)(40)),'' after ``State'';
                            (ii) by inserting ``any'' before 
                        ``political subdivision''; and
                            (iii) by inserting ``any of'' before ``the 
                        foregoing''.
                    (B) Conforming amendment.--The heading of paragraph 
                (1) of section 415(b) of such Code is amended by 
                striking ``Special rule for State and'' and inserting 
                ``Special rule for State, Indian tribal, and''.
            (3) Government pick up contributions.--Paragraph (2) of 
        section 414(h) of such Code (relating to designation by units 
        of government) is amended by striking ``State or political 
        subdivision'' and inserting ``State, Indian tribal government 
        (as defined in section 7701(a)(40)), or any political 
        subdivision''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--Section 4021(b) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1321(b)) is amended--
            (1) in paragraph (12), by striking ``or'' at the end;
            (2) in paragraph (13), by striking ``plan.'' and inserting 
        ``plan; or''; and
            (3) by adding at the end the following:
            ``(14) established and maintained for its employees by an 
        Indian tribal government (as defined in section 7701(a)(40) of 
        the Internal Revenue Code of 1986), a subdivision of an Indian 
        tribal government (determined in accordance with section 
        7871(d) of such Code), an agency or instrumentality of an 
        Indian tribal government or subdivision thereof, or an entity 
        established under Federal, State, or tribal law that is wholly 
        owned or controlled by any of the foregoing.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to any year beginning 
before, on, or after the date of the enactment of this Act.