ERISA Child Abuse Accountability Act of 1995

Summary: ERISA Child Abuse Accountability Act of 1995 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to allow the creation or assignment of rights to employee pension benefits, under a qualified child abuse order, if this is necessary to satisfy a judgment against an employee benefit plan participant or beneficiary for physically, sexually, or emotionally abusing a child.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ERISA Child Abuse Accountability Act 
of 1995''.

SEC. 2. AMENDMENTS TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME 
              SECURITY ACT OF 1974.

    (a) Creation or Assignment of Rights to Benefits Under Qualified 
Child Abuse Orders.--Section 206(d)(3)(A) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1056(d)(3)(A)) is amended--
            (1) by inserting ``or a child abuse order'' after ``a 
        domestic relations order'';
            (2) by inserting ``or a qualified child abuse order'' after 
        ``a qualified domestic relations order''; and
            (3) by inserting ``or any qualified child abuse order'' 
        after ``any qualified domestic relations order''.
    (b) Qualified Child Abuse Orders.--Section 206(d)(3)(B) of such Act 
(29 U.S.C. 1056(d)(3)(B)) is amended--
            (1) in clause (i), by striking ``the term'' and inserting 
        ``The term'', and by striking ``, and'' at the end and 
        inserting a period;
            (2) in clause (ii), by striking ``the term'' and inserting 
        ``The term''; and
            (3) by adding at the end the following new clauses:
                    ``(iii) The term `qualified child abuse order' 
                means a child abuse order--
                            ``(I) which creates or recognizes the 
                        existence of an alternate payee's right to, or 
                        assigns to an alternate payee the right to, 
                        receive all or a portion of the benefits 
                        payable with respect to a participant under a 
                        plan, and
                            ``(II) with respect to which the 
                        requirements of subparagraphs (C) and (D) are 
                        met.
                    ``(iv) The term `child abuse order' means any court 
                order or other similar process for the enforcement of a 
                judgment rendered against a participant or beneficiary 
                under a plan for physically, sexually, or emotionally 
                abusing a child. For purposes of this clause--
                            ``(I) The term `judgment rendered for 
                        physically, sexually, or emotionally abusing a 
                        child' means any legal claim perfected through 
                        a final enforceable judgment, which claim is 
                        based in whole or in part upon the physical, 
                        sexual, or emotional abuse of a child, whether 
                        or not that abuse is accompanied by other 
                        actionable wrongdoing, such as sexual 
                        exploitation or gross negligence.
                            ``(II) The term `child' means an individual 
                        under 18 years of age.''.
    (c) Exemption From Preemption.--Section 514(b)(7) of such Act (29 
U.S.C. 1144(b)(7)) is amended by inserting ``or qualified child abuse 
orders (within the meaning of section 206(d)(3)(B)(iii))'' before the 
period.
    (d) Conforming Amendments.--Section 206(d)(3) of such Act (29 
U.S.C. 1056(d)(3)) is amended--
            (1) in subparagraph (C), by inserting ``or child abuse 
        order'' after ``A domestic relations order'';
            (2) in subparagraph (D), by inserting ``or child abuse 
        order'' after ``A domestic relations order'';
            (3) in subparagraph (E)(i), by inserting ``or child abuse 
        order'' after ``A domestic relations order'';
            (4) in subparagraph (G)(i), by inserting ``or child abuse 
        order'' after ``any domestic relations order'', by inserting 
        ``or child abuse orders'' in subclause (I) after ``domestic 
        relations orders'', and by inserting ``or a qualified child 
        abuse order'' in subclause (II) after ``a qualified domestic 
        relations order'';
            (5) in subparagraph (G)(ii), by inserting ``and child abuse 
        orders'' after ``domestic relations orders'', by inserting ``or 
        child abuse order'' after ``domestic relations order'' each 
        place it appears in subclauses (II) and (III);
            (6) in subparagraph (H)(i), by inserting ``or whether a 
        child abuse order is a qualified child abuse order'' after 
        ``whether a domestic relations order is a qualified domestic 
        relations order'', and by inserting ``or a qualified child 
        abuse order'' after ``to be a qualified domestic relations 
        order'';
            (7) in subparagraph (H)(ii), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'';
            (8) in subparagraph (H)(iii), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'' each place it appears in subclauses (I) and (II);
            (9) in subparagraph (H)(iv), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'';
            (10) in subparagraph (H)(v), by inserting ``or child abuse 
        order'' after ``the domestic relations order'';
            (11) in subparagraph (I)(i), by inserting ``or child abuse 
        order'' after ``a domestic relations order'', and by inserting 
        ``or qualified child abuse order'' after ``a qualified domestic 
        relations order'';
            (12) in subparagraph (J), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'';
            (13) in subparagraph (K), by inserting ``or child abuse 
        order'' after ``a domestic relations order''; and
            (14) in subparagraph (M), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order''.

SEC. 3. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) Creation or Assignment of Rights to Benefits Under Qualified 
Child Abuse Orders.--Subparagraph (B) of section 401(a)(13) of the 
Internal Revenue Code of 1986 (relating to assignment of benefits) is 
amended--
            (1) by inserting ``or child abuse orders'' after ``domestic 
        relations orders'' in the heading;
            (2) by inserting ``or a child abuse order'' after ``a 
        domestic relations order''; and
            (3) by inserting ``or a qualified child abuse order'' after 
        ``a qualified domestic relations order''.
    (b) Qualified Child Abuse Orders.--Paragraph (1) of section 414(p) 
of such Code (defining qualified
 domestic relations order) is amended by adding at the end the 
following new subparagraphs:
                    ``(C) Qualified child abuse order.--The term 
                `qualified child abuse order' means a child abuse 
                order--
                            ``(i) which creates or recognizes the 
                        existence of an alternate payee's right to, or 
                        assigns to an alternate payee the right to, 
                        receive all or a portion of the benefits 
                        payable with respect to a participant under a 
                        plan, and
                            ``(ii) with respect to which the 
                        requirements of paragraphs (2) and (3) are met.
                    ``(D) Child abuse order.--
                            ``(i) In general.--The term `child abuse 
                        order' means any court order or other similar 
                        process for the enforcement of a judgment 
                        rendered against a participant or beneficiary 
                        under a plan for physically, sexually, or 
                        emotionally abusing a child.
                            ``(ii) Definitions.--For purposes of this 
                        subparagraph--
                                    ``(I) The term `judgment rendered 
                                for physically, sexually, or 
                                emotionally abusing a child' means any 
                                legal claim perfected through a final 
                                enforceable judgment, which claim is 
                                based in whole or in part upon the 
                                physical, sexual, or emotional abuse of 
                                a child, whether or not that abuse is 
                                accompanied by other actionable 
                                wrongdoing, such as sexual exploitation 
                                or gross negligence.
                                    ``(II) The term `child' means an 
                                individual under 18 years of age.''.
    (c) Conforming Amendments.--Subsection (p) of section 414 of such 
Code is amended--
            (1) in paragraph (2), by inserting ``or child abuse order'' 
        after ``A domestic relations order'';
            (2) in paragraph (3), by inserting ``or child abuse order'' 
        after ``A domestic relations order'';
            (3) in paragraph (4)(A), by inserting ``or child abuse 
        order'' after ``a domestic relations order'';
            (4) in paragraph (6)(A), by inserting ``or child abuse 
        order'' after ``any domestic relations order'', by inserting 
        ``or child abuse orders'' in clause (i) after ``domestic 
        relations orders'', and by inserting ``or a qualified child 
        abuse order'' in clause (ii) after ``a qualified domestic 
        relations order'';
            (5) in paragraph (6)(B), by inserting ``and child abuse 
        orders'' after ``domestic relations orders'';
            (6) in paragraph (7)(A), by inserting ``or whether a child 
        abuse order is a qualified child abuse order'' after ``whether 
        a domestic relations order is a qualified domestic relations 
        order'', and by inserting ``or a qualified child abuse order'' 
        after ``to be a qualified domestic relations order'';
            (7) in paragraph (7)(B), by inserting ``or qualified child 
        support order'' in the heading after ``qualified domestic 
        relations order'', and by inserting ``or a qualified child 
        abuse order'' after ``a qualified domestic relations order'';
            (8) in paragraph (7)(C), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'' each place it appears in clauses (i) and (ii);
            (9) in paragraph (7)(D), by inserting ``or a qualified 
        child abuse order'' after ``a qualified domestic relations 
        order'';
            (10) in paragraph (7)(E), by inserting ``or child abuse 
        order'' after ``the domestic relations order'';
            (11) in paragraph (8), by inserting ``or child abuse 
        order'' after ``a domestic relations order'';
            (12) in paragraph (9), by inserting ``or a qualified child 
        abuse order'' after ``a qualified domestic relations order'';
            (13) in paragraph (10), by inserting ``or a qualified child 
        abuse order'' after ``a qualified domestic relations order''; 
        and
            (14) in paragraph (11), by inserting ``or a qualified child 
        abuse order'' after ``pursuant to a qualified domestic 
        relations order'', and by inserting ``or a child abuse order'' 
        after ``pursuant to a domestic relations order''.
    (d) Tax Treatment of Distributions Pursuant to Qualified Child 
Abuse Orders.--
            (1) Alternate payee must include benefits in gross 
        income.--Paragraph (1) of section 402(e) of such Code (relating 
        to alternate payee under qualified domestic relations order 
        treated as distributee) is amended by inserting ``or a 
        qualified child abuse order (as defined in section 414(p))'' 
        after ``a qualified domestic relations order (as defined in 
        section 414(p))'' each place it appears.
            (2) Allocation of investment in the contract.--Paragraph 
        (10) of section 72(m) of such Code (relating to determination 
        of investment in the contract in the case of qualified domestic 
        relations orders) is amended--
                    (A) in the heading, by inserting ``and qualified 
                child abuse orders'' after ``qualified domestic 
                relations orders''; and
                    (B) by inserting ``or a qualified child abuse order 
                (as defined in section 414(p))'' after ``a qualified 
                domestic relations order (as defined in section 
                414(p))''.
            (3) Clarification of eligibility of participant for lump 
        sum treatment.--
                    (A) Subparagraph (H) of section 402(d)(4) of such 
                Code (relating to balance to credit of employee not to 
                include amounts payable under qualified domestic 
                relations order) is amended--
                            (i) in the heading, by inserting ``or 
                        qualified child abuse order'' after ``qualified 
                        domestic relations order''; and
                            (ii) by inserting ``or a qualified child 
                        abuse order (within the meaning of section 
                        414(p))'' after ``a qualified domestic 
                        relations order (within the meaning of section 
                        414(p))''.
                    (B) Subparagraph (J) of section 402(d)(4) of such 
                Code is amended by inserting ``, or under a qualified 
                child abuse order (within the meaning of section 
                414(p)) of the balance to the credit of an alternate 
                payee,'' after ``former spouse of the employee''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on January 1, 
1996, except that, in the case of a child abuse order entered before 
such date, the plan administrator--
            (1) shall treat such order as a qualified child abuse order 
        if such administrator is paying benefits pursuant to such order 
        on such date, and
            (2) may treat any other such order entered before such date 
        as a qualified child abuse order even if such order does not 
        meet the requirements of such amendments.