II 

109TH CONGRESS 

1ST SESSION S. 673 

To amend the Internal Revenue Code of 1986 and the Employee Retirement 

Income Security Act of 1974 to clarify that federally recognized Indian 

tribal governments are to be regulated under the same government employer rules and procedures that apply to Federal, State, and other 

local government employers with regard to the establishment and maintenance of employee benefit plans. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2005 

Mr. SMITH (for himself, Mr. BINGAMAN, and Mr. CONRAD) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL

To amend the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to clarify 

that federally recognized Indian tribal governments are 

to be regulated under the same government employer 

rules and procedures that apply to Federal, State, and 

other local government employers with regard to the 

establishment and maintenance of employee benefit 

plans.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2

•S 673 IS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Governmental Pension 

3 Plan Equalization Act of 2005’’. 

4 SEC. 2. DEFINITION OF ‘‘GOVERNMENTAL PLAN’’. 

5 (a) AMENDMENT TO INTERNAL REVENUE CODE OF

6 1986.—Section 414(d) of the Internal Revenue Code of 

7 1986 (definition of governmental plan) is amended by add8 ing at the end the following: ‘‘The term ‘governmental 

9 plan’ includes a plan established or maintained for its em10 ployees by an Indian tribal government (as defined in sec11 tion 7701(a)(40)), a subdivision of an Indian tribal gov12 ernment (determined in accordance with section 7871(d)), 

13 an agency instrumentality (or subdivision) of an Indian 

14 tribal government, or an entity established under Federal, 

15 State, or tribal law which is wholly owned or controlled 

16 by any of the foregoing.’’ 

17 (b) AMENDMENT TO EMPLOYEE RETIREMENT IN18 COME SECURITY ACT OF 1974.—Section 3(32) of the Em19 ployee Retirement Income Security Act of 1974 (29 

20 U.S.C. 1002(32)) is amended by adding at the end the 

21 following: ‘‘The term ‘governmental plan’ includes a plan 

22 established or maintained for its employees by an Indian 

23 tribal government (as defined in section 7701(a)(40)), a 

24 subdivision of an Indian tribal government (determined in 

25 accordance with section 7871(d)), an agency instrumen26 tality (or subdivision) of an Indian tribal government, or 
3

•S 673 IS

1 an entity established under Federal, State, or tribal law 

2 that is wholly owned or controlled by any of the fore3 going.’’ 

4 SEC. 3. EXTENSION TO ALL GOVERNMENTAL PLANS OF 

5 CURRENT MORATORIUM ON APPLICATION OF 

6 CERTAIN NONDISCRIMINATION RULES APPLI7 CABLE TO STATE AND LOCAL PLANS. 

8 (a) IN GENERAL.— 

9 (1) Subparagraph (G) of section 401(a)(5) and 

10 subparagraph (G) of section 401(a)(26) of the Inter11 nal Revenue Code of 1986 are each amended by 

12 striking ‘‘section 414(d))’’ and all that follows and 

13 inserting ‘‘section 414(d)).’’. 

14 (2) Subparagraph (G) of section 401(k)(3) of 

15 such Code and paragraph (2) of section 1505(d) of 

16 the Taxpayer Relief Act of 1997 (Public Law 105–

17 34; 111 Stat. 1063) are each amended by striking 

18 ‘‘maintained by a State or local government or polit19 ical subdivision thereof (or agency or instrumentality 

20 thereof)’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) The heading of subparagraph (G) of section 

23 401(a)(5) of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘STATE AND LOCAL GOVERN25 MENTAL’’ and inserting ‘‘GOVERNMENTAL’’. 
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•S 673 IS

1 (2) The heading of subparagraph (G) of section 

2 401(a)(26) of such Code is amended by striking 

3 ‘‘EXCEPTION FOR STATE AND LOCAL’’ and inserting 

4 ‘‘EXCEPTION FOR’’. 

5 (3) Section 401(k)(3)(G) of such Code is 

6 amended by inserting ‘‘GOVERNMENTAL PLAN.—’’ 

7 after ‘‘(G)’’. 

8 SEC. 4. CLARIFICATION THAT TRIBAL GOVERNMENTS ARE 

9 SUBJECT TO THE SAME DEFINED BENEFIT 

10 PLAN RULES AND REGULATIONS APPLIED TO 

11 STATE AND OTHER LOCAL GOVERNMENTS, 

12 THEIR POLICE AND FIREFIGHTERS. 

13 (a) AMENDMENTS TO INTERNAL REVENUE CODE OF

14 1986.— 

15 (1) POLICE AND FIREFIGHTERS.—Subpara16 graph (H) section 415(b)(2) of the Internal Revenue 

17 Code of 1986 (defining participant) is amended— 

18 (A) in clause (i), by striking ‘‘State or po19 litical subdivision’’ and inserting ‘‘State, Indian 

20 tribal government (as defined in section 

21 7701(a)(40)), or any political subdivision’’; and 

22 (B) in clause (ii)(I), by striking ‘‘State or 

23 political subdivision’’ each place it appears and 

24 inserting ‘‘State, Indian tribal government (as 

25 so defined), or any political subdivision’’. 
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•S 673 IS

1 (2) STATE AND LOCAL GOVERNMENT PLANS.— 

2 (A) IN GENERAL.—Subparagraph (A) of 

3 section 415(b)(10) of such Code (relating to 

4 limitation to equal accrued benefit) is amend5 ed— 

6 (i) by inserting ‘‘, Indian tribal gov7 ernment (as defined in section 

8 7701(a)(40)),’’ after ‘‘State’’; 

9 (ii) by inserting ‘‘any’’ before ‘‘polit10 ical subdivision’’; and 

11 (iii) by inserting ‘‘any of’’ before ‘‘the 

12 foregoing’’. 

13 (B) CONFORMING AMENDMENT.—The 

14 heading of paragraph (1) of section 415(b) of 

15 such Code is amended by striking ‘‘SPECIAL

16 RULE FOR STATE AND’’ and inserting ‘‘SPECIAL

17 RULE FOR STATE, INDIAN TRIBAL, AND’’. 

18 (3) GOVERNMENT PICK UP CONTRIBUTIONS.—

19 Paragraph (2) of section 414(h) of such Code (relat20 ing to designation by units of government) is amend21 ed by striking ‘‘State or political subdivision’’ and 

22 inserting ‘‘State, Indian tribal government (as de23 fined in section 7701(a)(40)), or any political sub24 division’’. 
6

•S 673 IS

1 (b) AMENDMENTS TO EMPLOYEE RETIREMENT IN2 COME SECURITY ACT OF 1974.—Section 4021(b) of the 

3 Employee Retirement Income Security Act of 1974 (29 

4 U.S.C. 1321(b)) is amended— 

5 (1) in paragraph (12), by striking ‘‘or’’ at the 

6 end; 

7 (2) in paragraph (13), by striking ‘‘plan.’’ and 

8 inserting ‘‘plan; or’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(14) established and maintained for its em11 ployees by an Indian tribal government (as defined 

12 in section 7701(a)(40) of the Internal Revenue Code 

13 of 1986), a subdivision of an Indian tribal govern14 ment (determined in accordance with section 

15 7871(d) of such Code), an agency or instrumentality 

16 of an Indian tribal government or subdivision there17 of, or an entity established under Federal, State, or 

18 tribal law that is wholly owned or controlled by any 

19 of the foregoing.’’. 

20 SEC. 5. EFFECTIVE DATE. 

21 The amendments made by this Act shall apply to any 

22 year beginning before, on, or after the date of the enact23 ment of this Act.

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