I

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. VELA ́ZQUEZ, Mr. ROMEROBARCELO ́, 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.
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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 ‘‘ERISA Child Abuse

5 Accountability Act of 1995’’.

6 SEC. 2. AMENDMENTS TO TITLE I OF THE EMPLOYEE RE7 TIREMENT INCOME SECURITY ACT OF 1974.

8 (a) CREATION OR ASSIGNMENT OF RIGHTS TO BENE9 FITS UNDER QUALIFIED CHILD ABUSE ORDERS.—Sec10 tion 206(d)(3)(A) of the Employee Retirement Income Se11 curity Act of 1974 (29 U.S.C. 1056(d)(3)(A)) is amend12 ed—

13 (1) by inserting ‘‘or a child abuse order’’ after

14 ‘‘a domestic relations order’’;

15 (2) by inserting ‘‘or a qualified child abuse

16 order’’ after ‘‘a qualified domestic relations order’’;

17 and

18 (3) by inserting ‘‘or any qualified child abuse

19 order’’ after ‘‘any qualified domestic relations

20 order’’.

21 (b) QUALIFIED CHILD ABUSE ORDERS.—Section

22 206(d)(3)(B) of such Act (29 U.S.C. 1056(d)(3)(B)) is

23 amended—
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1 (1) in clause (i), by striking ‘‘the term’’ and in2 serting ‘‘The term’’, and by striking ‘‘, and’’ at the

3 end and inserting a period;

4 (2) in clause (ii), by striking ‘‘the term’’ and in5 serting ‘‘The term’’; and

6 (3) by adding at the end the following new

7 clauses:

8 ‘‘(iii) The term ‘qualified child abuse order’

9 means a child abuse order—

10 ‘‘(I) which creates or recognizes the

11 existence of an alternate payee’s right to,

12 or assigns to an alternate payee the right

13 to, receive all or a portion of the benefits

14 payable with respect to a participant under

15 a plan, and

16 ‘‘(II) with respect to which the re17 quirements of subparagraphs (C) and (D)

18 are met.

19 ‘‘(iv) The term ‘child abuse order’ means

20 any court order or other similar process for the

21 enforcement of a judgment rendered against a

22 participant or beneficiary under a plan for

23 physically, sexually, or emotionally abusing a

24 child. For purposes of this clause—
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1 ‘‘(I) The term ‘judgment rendered for

2 physically, sexually, or emotionally abusing

3 a child’ means any legal claim perfected

4 through a final enforceable judgment,

5 which claim is based in whole or in part

6 upon the physical, sexual, or emotional

7 abuse of a child, whether or not that abuse

8 is accompanied by other actionable wrong9 doing, such as sexual exploitation or gross

10 negligence.

11 ‘‘(II) The term ‘child’ means an indi12 vidual under 18 years of age.’’.

13 (c) EXEMPTION FROM PREEMPTION.—Section

14 514(b)(7) of such Act (29 U.S.C. 1144(b)(7)) is amended

15 by inserting ‘‘or qualified child abuse orders (within the

16 meaning of section 206(d)(3)(B)(iii))’’ before the period.

17 (d) CONFORMING AMENDMENTS.—Section 206(d)(3)

18 of such Act (29 U.S.C. 1056(d)(3)) is amended—

19 (1) in subparagraph (C), by inserting ‘‘or child

20 abuse order’’ after ‘‘A domestic relations order’’;

21 (2) in subparagraph (D), by inserting ‘‘or child

22 abuse order’’ after ‘‘A domestic relations order’’;

23 (3) in subparagraph (E)(i), by inserting ‘‘or

24 child abuse order’’ after ‘‘A domestic relations

25 order’’;
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1 (4) in subparagraph (G)(i), by inserting ‘‘or

2 child abuse order’’ after ‘‘any domestic relations

3 order’’, by inserting ‘‘or child abuse orders’’ in

4 subclause (I) after ‘‘domestic relations orders’’, and

5 by inserting ‘‘or a qualified child abuse order’’ in

6 subclause (II) after ‘‘a qualified domestic relations

7 order’’;

8 (5) in subparagraph (G)(ii), by inserting ‘‘and

9 child abuse orders’’ after ‘‘domestic relations or10 ders’’, by inserting ‘‘or child abuse order’’ after ‘‘do11 mestic relations order’’ each place it appears in

12 subclauses (II) and (III);

13 (6) in subparagraph (H)(i), by inserting ‘‘or

14 whether a child abuse order is a qualified child

15 abuse order’’ after ‘‘whether a domestic relations

16 order is a qualified domestic relations order’’, and by

17 inserting ‘‘or a qualified child abuse order’’ after ‘‘to

18 be a qualified domestic relations order’’;

19 (7) in subparagraph (H)(ii), by inserting ‘‘or a

20 qualified child abuse order’’ after ‘‘a qualified do21 mestic relations order’’;

22 (8) in subparagraph (H)(iii), by inserting ‘‘or a

23 qualified child abuse order’’ after ‘‘a qualified do24 mestic relations order’’ each place it appears in

25 subclauses (I) and (II);
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1 (9) in subparagraph (H)(iv), by inserting ‘‘or a

2 qualified child abuse order’’ after ‘‘a qualified do3 mestic relations order’’;

4 (10) in subparagraph (H)(v), by inserting ‘‘or

5 child abuse order’’ after ‘‘the domestic relations

6 order’’;

7 (11) in subparagraph (I)(i), by inserting ‘‘or

8 child abuse order’’ after ‘‘a domestic relations

9 order’’, and by inserting ‘‘or qualified child abuse

10 order’’ after ‘‘a qualified domestic relations order’’;

11 (12) in subparagraph (J), by inserting ‘‘or a

12 qualified child abuse order’’ after ‘‘a qualified do13 mestic relations order’’;

14 (13) in subparagraph (K), by inserting ‘‘or

15 child abuse order’’ after ‘‘a domestic relations

16 order’’; and

17 (14) in subparagraph (M), by inserting ‘‘or a

18 qualified child abuse order’’ after ‘‘a qualified do19 mestic relations order’’.

20 SEC. 3. AMENDMENTS TO THE INTERNAL REVENUE CODE

21 OF 1986.

22 (a) CREATION OR ASSIGNMENT OF RIGHTS TO BENE23 FITS UNDER QUALIFIED CHILD ABUSE ORDERS.—Sub24 paragraph (B) of section 401(a)(13) of the Internal Reve-
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1 nue Code of 1986 (relating to assignment of benefits) is

2 amended—

3 (1) by inserting ‘‘OR CHILD ABUSE ORDERS’’

4 after ‘‘DOMESTIC RELATIONS ORDERS’’ in the

5 heading;

6 (2) by inserting ‘‘or a child abuse order’’ after

7 ‘‘a domestic relations order’’; and

8 (3) by inserting ‘‘or a qualified child abuse

9 order’’ after ‘‘a qualified domestic relations order’’.

10 (b) QUALIFIED CHILD ABUSE ORDERS.—Paragraph

11 (1) of section 414(p) of such Code (defining qualified do12 mestic relations order) is amended by adding at the end

13 the following new subparagraphs:

14 ‘‘(C) QUALIFIED CHILD ABUSE ORDER.—

15 The term ‘qualified child abuse order’ means a

16 child abuse order—

17 ‘‘(i) which creates or recognizes the

18 existence of an alternate payee’s right to,

19 or assigns to an alternate payee the right

20 to, receive all or a portion of the benefits

21 payable with respect to a participant under

22 a plan, and

23 ‘‘(ii) with respect to which the re24 quirements of paragraphs (2) and (3) are

25 met.
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1 ‘‘(D) CHILD ABUSE ORDER.—

2 ‘‘(i) IN GENERAL.—The term ‘child

3 abuse order’ means any court order or

4 other similar process for the enforcement

5 of a judgment rendered against a partici6 pant or beneficiary under a plan for phys7 ically, sexually, or emotionally abusing a

8 child.

9 ‘‘(ii) DEFINITIONS.—For purposes of

10 this subparagraph—

11 ‘‘(I) The term ‘judgment ren12 dered for physically, sexually, or emo13 tionally abusing a child’ means any

14 legal claim perfected through a final

15 enforceable judgment, which claim is

16 based in whole or in part upon the

17 physical, sexual, or emotional abuse of

18 a child, whether or not that abuse is

19 accompanied by other actionable

20 wrongdoing, such as sexual exploi21 tation or gross negligence.

22 ‘‘(II) The term ‘child’ means an

23 individual under 18 years of age.’’.

24 (c) CONFORMING AMENDMENTS.—Subsection (p) of

25 section 414 of such Code is amended—
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1 (1) in paragraph (2), by inserting ‘‘or child

2 abuse order’’ after ‘‘A domestic relations order’’;

3 (2) in paragraph (3), by inserting ‘‘or child

4 abuse order’’ after ‘‘A domestic relations order’’;

5 (3) in paragraph (4)(A), by inserting ‘‘or child

6 abuse order’’ after ‘‘a domestic relations order’’;

7 (4) in paragraph (6)(A), by inserting ‘‘or child

8 abuse order’’ after ‘‘any domestic relations order’’,

9 by inserting ‘‘or child abuse orders’’ in clause (i)

10 after ‘‘domestic relations orders’’, and by inserting

11 ‘‘or a qualified child abuse order’’ in clause (ii) after

12 ‘‘a qualified domestic relations order’’;

13 (5) in paragraph (6)(B), by inserting ‘‘and

14 child abuse orders’’ after ‘‘domestic relations or15 ders’’;

16 (6) in paragraph (7)(A), by inserting ‘‘or

17 whether a child abuse order is a qualified child

18 abuse order’’ after ‘‘whether a domestic relations

19 order is a qualified domestic relations order’’, and by

20 inserting ‘‘or a qualified child abuse order’’ after ‘‘to

21 be a qualified domestic relations order’’;

22 (7) in paragraph (7)(B), by inserting ‘‘OR

23 QUALIFIED CHILD SUPPORT ORDER’’ in the heading

24 after ‘‘QUALIFIED DOMESTIC RELATIONS ORDER’’,
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1 and by inserting ‘‘or a qualified child abuse order’’

2 after ‘‘a qualified domestic relations order’’;

3 (8) in paragraph (7)(C), by inserting ‘‘or a

4 qualified child abuse order’’ after ‘‘a qualified do5 mestic relations order’’ each place it appears in

6 clauses (i) and (ii);

7 (9) in paragraph (7)(D), by inserting ‘‘or a

8 qualified child abuse order’’ after ‘‘a qualified do9 mestic relations order’’;

10 (10) in paragraph (7)(E), by inserting ‘‘or child

11 abuse order’’ after ‘‘the domestic relations order’’;

12 (11) in paragraph (8), by inserting ‘‘or child

13 abuse order’’ after ‘‘a domestic relations order’’;

14 (12) in paragraph (9), by inserting ‘‘or a quali15 fied child abuse order’’ after ‘‘a qualified domestic

16 relations order’’;

17 (13) in paragraph (10), by inserting ‘‘or a

18 qualified child abuse order’’ after ‘‘a qualified do19 mestic relations order’’; and

20 (14) in paragraph (11), by inserting ‘‘or a

21 qualified child abuse order’’ after ‘‘pursuant to a

22 qualified domestic relations order’’, and by inserting

23 ‘‘or a child abuse order’’ after ‘‘pursuant to a do24 mestic relations order’’.
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1 (d) TAX TREATMENT OF DISTRIBUTIONS PURSUANT

2 TO QUALIFIED CHILD ABUSE ORDERS.—

3 (1) ALTERNATE PAYEE MUST INCLUDE BENE4 FITS IN GROSS INCOME.—Paragraph (1) of section

5 402(e) of such Code (relating to alternate payee

6 under qualified domestic relations order treated as

7 distributee) is amended by inserting ‘‘or a qualified

8 child abuse order (as defined in section 414(p))’’

9 after ‘‘a qualified domestic relations order (as de10 fined in section 414(p))’’ each place it appears.

11 (2) ALLOCATION OF INVESTMENT IN THE CON12 TRACT.—Paragraph (10) of section 72(m) of such

13 Code (relating to determination of investment in the

14 contract in the case of qualified domestic relations

15 orders) is amended—

16 (A) in the heading, by inserting ‘‘AND

17 QUALIFIED CHILD ABUSE ORDERS’’ after

18 ‘‘QUALIFIED DOMESTIC RELATIONS ORDERS’’;

19 and

20 (B) by inserting ‘‘or a qualified child abuse

21 order (as defined in section 414(p))’’ after ‘‘a

22 qualified domestic relations order (as defined in

23 section 414(p))’’.

24 (3) CLARIFICATION OF ELIGIBILITY OF PARTIC25 IPANT FOR LUMP SUM TREATMENT.—
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1 (A) Subparagraph (H) of section 402(d)(4)

2 of such Code (relating to balance to credit of

3 employee not to include amounts payable under

4 qualified domestic relations order) is amend5 ed—

6 (i) in the heading, by inserting ‘‘OR

7 QUALIFIED CHILD ABUSE ORDER’’ after

8 ‘‘QUALIFIED DOMESTIC RELATIONS

9 ORDER’’; and

10 (ii) by inserting ‘‘or a qualified child

11 abuse order (within the meaning of section

12 414(p))’’ after ‘‘a qualified domestic rela13 tions order (within the meaning of section

14 414(p))’’.

15 (B) Subparagraph (J) of section 402(d)(4)

16 of such Code is amended by inserting ‘‘, or

17 under a qualified child abuse order (within the

18 meaning of section 414(p)) of the balance to

19 the credit of an alternate payee,’’ after ‘‘former

20 spouse of the employee’’.

21 SEC. 4. EFFECTIVE DATE.

22 The amendments made by this Act shall take effect

23 on January 1, 1996, except that, in the case of a child

24 abuse order entered before such date, the plan adminis25 trator—
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1 (1) shall treat such order as a qualified child

2 abuse order if such administrator is paying benefits

3 pursuant to such order on such date, and

4 (2) may treat any other such order entered be5 fore such date as a qualified child abuse order even

6 if such order does not meet the requirements of such

7 amendments.

Æ