I 

108TH CONGRESS 

1ST SESSION H. R. 1893

To amend the Age Discrimination in Employment Act of 1967 with respect 

to voluntary early retirement benefits and medical benefits. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2003

Mr. PETRI (for himself, Mr. KIND, Mr. SENSENBRENNER, Mr. GREEN of Wisconsin, Ms. BALDWIN, and Mr. RYAN of Wisconsin) introduced the following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL

To amend the Age Discrimination in Employment Act of 

1967 with respect to voluntary early retirement benefits 

and medical benefits.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Teacher Voluntary 

5 Early Retirement Incentive Act of 2003’’. 
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1 SEC. 2. GOVERNMENTAL AND HIGHER EDUCATION VOL2 UNTARY EARLY RETIREMENT INCENTIVE 

3 PLANS. 

4 (a) AMENDMENT.—Section 4(m) of the Age Discrimi5 nation in Employment Act of 1967 (29 U.S.C. 623) is 

6 amended to read as follows: 

7 ‘‘(m) VOLUNTARY RETIREMENT INCENTIVE

8 PLANS.—Notwithstanding subsection (f)(2)(b), it shall 

9 not be a violation of subsection (a), (b), (c), or (d) solely 

10 because a voluntary early retirement incentive plan main11 tained by a local educational agency (as defined in section 

12 9101 of the Elementary and Secondary Education Act of 

13 1965) or an institution of higher education (as defined in 

14 section 101 of the Higher Education Act of 1965), pro15 vides for supplemental benefits to an employee that are 

16 reduced or eliminated on the basis of the employee’s age 

17 at the time of such employee’s retirement, if—

18 ‘‘(1) the employer does not implement with re19 spect to such employee any age-based reduction or 

20 elimination of benefits that are not such supple21 mental benefits, except as permitted by other provi22 sions of this Act; 

23 ‘‘(2) such supplemental benefits are in addition 

24 to any retirement or severance benefits which have 

25 been offered generally to employees, independent of 
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1 any early retirement or exit-incentive plan, within 

2 the preceding 365 days; and 

3 ‘‘(3) with respect to any plan supplemental ben4 efits for which an employee first becomes eligible 

5 after the enactment of the Teacher Voluntary Early 

6 Retirement Incentive Act of 2003—

7 ‘‘(i) any employee who attains the min8 imum age and satisfies all non-age based condi9 tions for receiving a benefit under the plan has 

10 an opportunity lasting not less than 180 days 

11 to elect to retire, and the plan does not require 

12 retirement to occur sooner than 180 days after 

13 such election; and 

14 ‘‘(ii) any employee who is not eligible to re15 ceive the maximum supplemental benefits pro16 vided under the plan because of the age of such 

17 employee at the time of retirement was afforded 

18 a reasonable opportunity to receive such max19 imum benefits at a previous time in such em20 ployee’s employment.’’. 

21 (b) CONSTRUCTION.—Except as otherwise provided 

22 in section 4(m)(3) of the Age Discrimination in Employ23 ment Act of 1967 (29 U.S.C. 623(m)(3)), the amendment 

24 made by subsection (a) shall apply in determining whether 

25 a voluntary employee early retirement incentive plan main-
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1 tained by a local educational agency (as defined in section 

2 9101 of the Elementary and Secondary Education Act of 

3 1965) or an institution of higher education (as defined in 

4 section 101 of the Higher Education Act of 1965), was 

5 in violation of subsection (a), (b), (c), or (e) of section 

6 4 of the Age Discrimination in Employment Act of 1967 

7 (29 U.S.C. 621 et seq.) after January 1, 1996. 

8 SEC. 3. RETIREE MEDICAL BENEFITS COORDINATED WITH 

9 MEDICARE AND OTHER GOVERNMENTAL AND 

10 EMPLOYER BENEFIT PLANS; VOLUNTARY 

11 EARLY RETIREMENT INCENTIVE PLANS 

12 MAINTAINED BY LOCAL EDUCATIONAL AGEN13 CIES. 

14 (a) VOLUNTARY EARLY RETIREMENT INCENTIVE

15 PLANS MAINTAINED BY LOCAL EDUCATIONAL AGEN16 CIES.—Section 4(l)(1) of the Age Discrimination in Em17 ployment Act of 1967 (29 U.S.C. 623(l)(1)) is amended 

18 by adding at the end the following: 

19 ‘‘A voluntary early retirement incentive plan maintained 

20 by a local educational agency (as defined in Section 9101 

21 of the Elementary and Secondary Education Act of 1965) 

22 which makes payments or supplements as provided in 

23 clauses (i) or (ii) of subparagraph (B) in coordination with 

24 a defined benefit plan (as defined in Section 3(35) of the 

25 Employee Retirement Income Security Act of 1974 (29 
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1 U.S.C. 1002(35) maintained by a state or an agency 

2 thereof shall itself be deemed to constitute a defined ben3 efit plan for purposes of subparagraph (B).’’. 

4 (b) RETIREE MEDICAL BENEFITS COORDINATED

5 WITH MEDICARE BENEFITS.—Section 4(l) of the Age 

6 Discrimination in Employment Act of 1967 (29 U.S.C. 

7 623(l)) is amended by adding to the end the following: 

8 ‘‘(4) It shall not be a violation of subsection (a), (b), 

9 (c), or (e) solely because an employee benefit plan (as de10 fined in section 3 of the Employment Retirement Income 

11 Security Act of 1974 (29 U.S.C. 1002(3)) provides for 

12 medical benefits for retired participants that are altered, 

13 reduced, or eliminated when the participant is eligible for 

14 medical benefits under title XVIII of the Social Security 

15 Act (42 U.S.C. 1395 et seq.) or an employee benefit plan 

16 maintained by a State or an agency thereof.’’. 

17 (c) CONSTRUCTION.—(1) The amendments made by 

18 subsections (a) and (b) shall apply in determining whether 

19 a voluntary early retirement incentive plan maintained by 

20 a local educational agency (as defined in Section 9101 of 

21 the Elementary and Secondary Education Act) or an em22 ployee benefit plan (as defined in Section 3 of the Em23 ployee Retirement Income Security Act of 1974 (29 

24 U.S.C. 1002(3)) providing medical benefits for retired 

25 participants, was in violation of subsection (a), (b), (c), 
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1 or (e) of section 4 of the Age Discrimination in Employ2 ment Act of 1967 (29 U.S.C. 623) at any time subsequent 

3 to January 1, 1996. 

4 (2) No inference may be drawn from the amendment 

5 made by subsection (a) as to whether a voluntary early 

6 retirement incentive plan maintained by a local edu7 cational agency constitutes, or at any time before or after 

8 the effective date of subsection (a) constituted, a defined 

9 benefit plan (as defined in Section 3(35) of the Employee 

10 Retirement Income Security Act of 1974 (29 U.S.C. 

11 1002(35))) for any purpose, including section 4 of the Age 

12 Discrimination in Employment Act of 1967.

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