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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2140 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 2140

To amend title I of the Employee Retirement Income Security Act of 1974 
    and the Internal Revenue Code of 1986 to permit the creation or 
   assignment of rights to employee pension benefits if necessary to 
   satisfy a judgment against a plan participant or beneficiary for 
         physicially, sexually, or emotionally abusing a child.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 28, 1995

 Mrs. Schroeder (for herself, Mr. Ackerman, Mr. Ramstad, Mrs. Maloney, 
Mr. Engel, Ms. Norton, Ms. Velazquez, Mr. Romero-Barcelo, Mr. Dellums, 
Mr. DeFazio, Mr. Manton, Mr. Frost, Ms. Jackson-Lee, Mr. Hilliard, Mr. 
 Evans, Ms. Lofgren, Mr. Waxman, Mr. Wynn, Mr. Frank of Massachusetts, 
Mr. Underwood, Mr. Gejdenson, Mr. Yates, Mr. Reynolds, and Mr. Smith of 
 New Jersey) introduced the following bill; which was referred to the 
Committee on Economic and Educational Opportunities, and in addition to 
   the Committee on Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend title I of the Employee Retirement Income Security Act of 1974 
    and the Internal Revenue Code of 1986 to permit the creation or 
   assignment of rights to employee pension benefits if necessary to 
   satisfy a judgment against a plan participant or beneficiary for 
         physically, sexually, or emotionally abusing a child.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
                                 <all>
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