To establish a special rule for determining normal retirement age for certain existing defined benefit plans.

To establish a special rule for determining normal retirement age for certain existing defined benefit plans. 1. Clarification of the normal retirement age (a) Amendments to ERISA Section 204 of the Employee Retirement Income Security Act of 1974 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection: (k) Special rule for determining normal retirement age for certain existing defined benefit plans (1) In general For purposes of section 3(24), an applicable plan shall not be treated as failing to meet any requirement of this title, or as failing to have a uniform normal retirement age for purposes of this title, solely because the plan has adopted the normal retirement age described in paragraph (2). (2) Applicable plan For purposes of this subsection— (A) In general The term applicable plan (i) an age otherwise permitted under section 3(24), or (ii) the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan. A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan. (B) Expanded application Subject to subparagraph (C), if, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall be treated as an applicable plan also with respect to such participants or participating employers. (C) Limitation on expanded application A defined benefit plan shall be an applicable plan only with respect to an individual who— (i) is a participant in the plan on or before January 1, 2017, or (ii) is an employee at any time on or before January 1, 2017 of any employer participating in the plan, and who becomes a participant in such plan after such date. . (b) Amendment to 1986 Code Section 411 (f) Special rule for determining normal retirement age for certain existing defined benefit plans (1) In general For purposes of subsection (a)(8), an applicable plan shall not be treated as failing to meet any requirement of this subchapter, or as failing to have a uniform normal retirement age for purposes of this subchapter, solely because the plan has adopted the normal retirement age described in paragraph (2). (2) Applicable plan For purposes of this subsection— (A) In general The term applicable plan (i) an age otherwise permitted under subsection (a)(8), or (ii) the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan. A plan shall not fail to be treated as an applicable plan solely because, as of such date, the normal retirement age described in the preceding sentence only applied to certain participants or to certain employers participating in the plan. (B) Expanded application Subject to subparagraph (C), if, after the date described in subparagraph (A), an applicable plan expands the application of the normal retirement age described in subparagraph (A) to additional participants or participating employers, such plan shall be treated as an applicable plan also with respect to such participants or participating employers. (C) Limitation on expanded application A defined benefit plan shall be an applicable plan only with respect to an individual who— (i) is a participant in the plan on or before January 1, 2017, or (ii) is an employee at any time on or before January 1, 2017, of any employer participating in the plan, and who becomes a participant in such plan after such date. . (c) Effective date The amendments made by this section shall apply to all periods before, on, and after the date of enactment of this Act.

Summary: Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to formulate a special rule for determining normal retirement age for certain existing defined benefit plans.