I

104TH CONGRESS

1ST SESSION H. R. 1314

To amend the Internal Revenue Code of 1986 to modify the pension plan

rules applicable to State judicial retirement plans.

IN THE HOUSE OF REPRESENTATIVES

MARCH 23, 1995

Mr. ZIMMER (for himself and Mr. HYDE) 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 modify

the pension plan rules applicable to State judicial retirement plans.

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

3 SECTION 1. MODIFICATIONS RELATING TO STATE JUDI4 CIAL RETIREMENT PLANS.

5 (a) NONDISCRIMINATION REQUIREMENTS.—Para6 graph (5) of section 401(a) of the Internal Revenue Code

7 of 1986 (relating to qualified pension, profit-sharing, and

8 stock bonus plans) is amended by adding at the end the

9 following new subparagraph:
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1 ‘‘(F) STATE JUDICIAL RETIREMENT

2 PLANS.—A State judicial retirement plan (as

3 defined in section 414(u)) shall not be consid4 ered discriminatory within the meaning of para5 graph (4).’’

6 (b) ADDITIONAL PARTICIPATION REQUIREMENTS.—

7 Paragraph (26) of section 401(a) of such Code is amended

8 by redesignating subparagraphs (H) and (I) as subpara9 graphs (I) and (J), respectively, and by inserting after

10 subparagraph (G) the following new subparagraph:

11 ‘‘(H) This paragraph shall not apply to

12 any State judicial retirement plan (as defined in

13 section 414(u)).’’

14 (c) APPLICATION OF MINIMUM PARTICIPATION

15 STANDARDS.—

16 (1) Subsection (c) of section 410 of such Code

17 (relating to minimum participation standards) is

18 amended by adding at the end the following new

19 paragraph:

20 ‘‘(3) A State judicial retirement plan (as de21 fined in section 414(u)) shall be treated as meeting

22 the requirements of this section for purposes of sec23 tion 401(a).’’

24 (2) Paragraph (1) of section 410(c) of such

25 Code is amended by striking ‘‘paragraph (2)’’ in the
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1 material preceding subparagraph (A) and inserting

2 ‘‘paragraphs (2) and (3)’’.

3 (3) Paragraph (2) of section 410(c) of such

4 Code is amended by striking ‘‘A plan’’ and inserting

5 ‘‘Except as provided in paragraph (3), a plan’’.

6 (d) STATE JUDICIAL RETIREMENT PLAN DE7 FINED.—Section 414 of such Code is amended by adding

8 at the end the following new subsection:

9 ‘‘(u) STATE JUDICIAL RETIREMENT PLAN.—For

10 purposes of sections 401 and 410, the term ‘State judicial

11 retirement plan’ means a plan (or any portion of a plan)

12 established and maintained for its employees by the gov13 ernment of any State or any political subdivision thereof,

14 or by any agency or instrumentality of the foregoing, and

15 which provides for participation, coverage, contributions,

16 or benefits which are primarily for, by, or on behalf of

17 judges or justices appointed or elected in accordance with

18 the constitution and laws of such State, political subdivi19 sion, or agency or instrumentality.’’

20 (e) EFFECTIVE DATE.—

21 (1) IN GENERAL.—The amendments made by

22 this section shall apply to taxable years beginning on

23 or after the date of the enactment of this Act.

24 (2) TREATMENT FOR YEARS BEGINNING BE25 FORE DATE OF ENACTMENT.—In the case of a State
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1 judicial retirement plan (as defined in section 414(u)

2 of the Internal Revenue Code of 1986), such plan

3 shall be treated as satisfying the requirements of

4 sections 401(a)(4), 401(a)(26), and 410 of such

5 Code for all taxable years beginning before the date

6 of the enactment of this Act.

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