I 
112TH CONGRESS 
2D SESSION 
H. R. 4143 
To amend the Internal Revenue Code of 1986 to extend the period during 
which transfers of excess pension assets may be made to retiree health 
accounts and to provide for the transfer of such assets to retiree group 
term life insurance accounts. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2012 
Mr. TIBERI (for himself and Mr. PASCRELL) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and the Workforce, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to extend 
the period during which transfers of excess pension as-
sets may be made to retiree health accounts and to 
provide for the transfer of such assets to retiree group 
term life insurance accounts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Extension of Section 
420 and Retiree Life Insurance Act of 2012’’. 
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SEC. 2. EXTENSION FOR TRANSFERS OF EXCESS PENSION 
ASSETS TO RETIREE HEALTH ACCOUNTS. 
(a) IN GENERAL.—Paragraph (5) of section 420(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2021’’. 
(b) CONFORMING ERISA AMENDMENTS.— 
(1) 
Sections 
101(e)(3), 
403(c)(1), 
and 
408(b)(13) of the Employee Retirement Income Se-
curity Act of 1974 are each amended by striking 
‘‘Pension Protection Act of 2006’’ and inserting 
‘‘Extension of Section 420 and Retiree Life Insur-
ance Act of 2012’’. 
(2) Section 408(b)(13) of such Act (29 U.S.C. 
1108(b)(13)) is amended by striking ‘‘January 1, 
2014’’ and inserting ‘‘January 1, 2022’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall take effect on the date of the enactment 
of this Act. 
SEC. 3. TRANSFER OF EXCESS PENSION ASSETS TO RE-
TIREE GROUP TERM LIFE INSURANCE AC-
COUNTS. 
(a) IN GENERAL.—Subsection (a) of section 420 of 
the Internal Revenue Code of 1986 is amended by insert-
ing ‘‘, or an applicable life insurance account,’’ after 
‘‘health benefits account’’. 
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(b) APPLICABLE LIFE INSURANCE ACCOUNT DE-
FINED.— 
(1) IN
GENERAL.—Subsection (e) of section 
420 of the Internal Revenue Code of 1986 is amend-
ed by redesignating paragraphs (4) and (5) as para-
graphs (5) and (6), respectively, and by inserting 
after paragraph (3) the following new paragraph: 
‘‘(4) 
APPLICABLE
LIFE
INSURANCE
AC-
COUNT.—The term ‘applicable life insurance ac-
count’ means a separate account established and 
maintained for amounts transferred under this sec-
tion for qualified current retiree liabilities based on 
premiums for applicable life insurance benefits.’’. 
(2) APPLICABLE
LIFE
INSURANCE
BENEFITS 
DEFINED.—Paragraph (1) of section 420(e) of such 
Code is amended by redesignating subparagraph (D) 
as subparagraph (E) and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) APPLICABLE LIFE INSURANCE BENE-
FITS.—The term ‘applicable life insurance bene-
fits’ means group-term life insurance coverage 
provided to retired employees who, immediately 
before the qualified transfer, are entitled to re-
ceive such coverage by reason of retirement and 
who are entitled to pension benefits under the 
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plan, but only to the extent that such coverage 
is provided under a policy for retired employees 
and the cost of such coverage is excludable from 
the retired employee’s gross income under sec-
tion 79.’’. 
(3) COLLECTIVELY
BARGAINED
LIFE
INSUR-
ANCE BENEFITS DEFINED.— 
(A) IN GENERAL.—Paragraph (6) of sec-
tion 420(f) of such Code is amended by redesig-
nating subparagraph (D) as subparagraph (E) 
and by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) COLLECTIVELY BARGAINED LIFE IN-
SURANCE
BENEFITS.—The term ‘collectively 
bargained life insurance benefits’ means, with 
respect to any collectively bargained transfer— 
‘‘(i) applicable life insurance benefits 
which are provided to retired employees 
who, immediately before the transfer, are 
entitled to receive such benefits by reason 
of retirement, and 
‘‘(ii) if specified by the provisions of 
the collective bargaining agreement gov-
erning the transfer, applicable life insur-
ance benefits which will be provided at re-
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tirement to employees who are not retired 
employees at the time of the transfer.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Clause (i) of section 420(e)(1)(C) 
of such Code is amended by striking ‘‘upon 
retirement’’ and inserting ‘‘by reason of re-
tirement’’. 
(ii) Subparagraph (C) of section 
420(f)(6) of such Code is amended— 
(I) by striking ‘‘which are pro-
vided to’’ in the matter preceding 
clause (i), 
(II) by inserting ‘‘which are pro-
vided to’’ before ‘‘retired employees’’ 
in clause (i), 
(III) by striking ‘‘upon retire-
ment’’ in clause (i) and inserting ‘‘by 
reason of retirement’’, and 
(IV) by striking ‘‘active employ-
ees who, following their retirement,’’ 
and inserting ‘‘which will be provided 
at retirement to employees who are 
not retired employees at the time of 
the transfer and who’’. 
(c) MAINTENANCE OF EFFORT.— 
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(1) IN GENERAL.—Subparagraph (A) of section 
420(c)(3) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘, and each group-term life in-
surance plan under which applicable life insurance 
benefits are provided,’’ after ‘‘health benefits are 
provided’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subparagraph (B) of section 420(c)(3) 
of such Code is amended— 
(i) by redesignating subclauses (I) and 
(II) of clause (i) as subclauses (II) and 
(III) of such clause, respectively, and by 
inserting before subclause (II) of such 
clause, as so redesignated, the following 
new subclause: 
‘‘(I) separately with respect to 
applicable health benefits and applica-
ble life insurance benefits,’’, and 
(ii) by striking ‘‘for applicable health 
benefits’’ and all that follows in clause (ii) 
and inserting ‘‘was provided during such 
taxable year for the benefits with respect 
to which the determination under clause (i) 
is made.’’. 
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(B) Subparagraph (C) of section 420(c)(3) 
of such Code is amended— 
(i) by inserting ‘‘for applicable health 
benefits’’ after ‘‘applied separately’’, and 
(ii) by inserting ‘‘, and separately for 
applicable life insurance benefits with re-
spect to individuals age 65 or older at any 
time during the taxable year and with re-
spect to individuals under age 65 during 
the taxable year’’ before the period. 
(C) Subparagraph (E) of section 420(c)(3) 
of such Code is amended— 
(i) in clause (i), by inserting ‘‘or re-
tiree life insurance coverage, as the case 
may be,’’ after ‘‘retiree health coverage’’, 
(ii) in clause (ii), by inserting ‘‘FOR 
RETIREE HEALTH COVERAGE’’ after ‘‘COST 
REDUCTIONS’’ in the heading thereof, and 
(iii) in clause (ii)(II), by inserting 
‘‘with respect to applicable health benefits’’ 
after ‘‘liabilities of the employer’’. 
(D) Paragraph (2) of section 420(f) of 
such Code is amended by striking ‘‘collectively 
bargained retiree health liabilities’’ each place it 
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occurs and inserting ‘‘collectively bargained re-
tiree liabilities’’. 
(E) Clause (i) of section 420(f)(2)(D) of 
such Code is amended— 
(i) by inserting ‘‘, and each group- 
term life insurance plan or arrangement 
under which applicable life insurance bene-
fits are provided,’’ in subclause (I) after 
‘‘applicable health benefits are provided’’, 
(ii) by inserting ‘‘or applicable life in-
surance benefits, as the case may be,’’ in 
subclause (I) after ‘‘provides applicable 
health benefits’’, 
(iii) by striking ‘‘group health’’ in 
subclause (II), and 
(iv) by inserting ‘‘or collectively bar-
gained life insurance benefits’’ in subclause 
(II) after ‘‘collectively bargained health 
benefits’’. 
(F) Clause (ii) of section 420(f)(2)(D) of 
such Code is amended— 
(i) by inserting ‘‘with respect to appli-
cable health benefits or applicable life in-
surance benefits’’ after ‘‘requirements of 
subsection (c)(3)’’, and 
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(ii) by adding at the end the fol-
lowing: ‘‘Such election may be made sepa-
rately with respect to applicable health 
benefits and applicable life insurance bene-
fits. In the case of an election with respect 
to applicable life insurance benefits, the 
first sentence of this clause shall be ap-
plied as if subsection (c)(3) as in effect be-
fore the amendments made by such Act 
applied to such benefits.’’. 
(G) Clause (iii) of section 420(f)(2)(D) of 
such Code is amended— 
(i) by striking ‘‘retiree’’ each place it 
occurs, and 
(ii) by inserting ‘‘, collectively bar-
gained life insurance benefits, or both, as 
the case may be,’’ after ‘‘health benefits’’ 
each place it occurs. 
(d) COORDINATION WITH SECTION 79.—Section 79 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subsection: 
‘‘(f) EXCEPTION FOR LIFE INSURANCE PURCHASED 
IN CONNECTION WITH QUALIFIED TRANSFER OF EXCESS 
PENSION
ASSETS.—Subsection 
(b)(3) 
and 
section 
72(m)(3) shall not apply in the case of any cost paid 
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(whether directly or indirectly) with assets held in an ap-
plicable life insurance account (as defined in section 
420(e)(4)) under a defined benefit plan.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 420 of the Internal Revenue Code 
of 1986 is amended by striking ‘‘qualified current 
retiree health liabilities’’ each place it appears and 
inserting ‘‘qualified current retiree liabilities’’. 
(2) Section 420 of such Code is amended by in-
serting ‘‘, or an applicable life insurance account,’’ 
after ‘‘a health benefits account’’ each place it ap-
pears in subsection (b)(1)(A), subparagraphs (A), 
(B)(i), and (C) of subsection (c)(1), subsection 
(d)(1)(A), and subsection (f)(2)(E)(ii). 
(3) Section 420(b) of such Code is amended— 
(A) by adding the following at the end of 
paragraph (2)(A): ‘‘If there is a transfer from 
a defined benefit plan to both a health benefits 
account and an applicable life insurance ac-
count during any taxable year, such transfers 
shall be treated as 1 transfer for purposes of 
this paragraph.’’, and 
(B) by inserting ‘‘to an account’’ after 
‘‘may be transferred’’ in paragraph (3). 
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(4) The heading for section 420(c)(1)(B) of 
such Code is amended by inserting ‘‘OR LIFE INSUR-
ANCE’’ after ‘‘HEALTH BENEFITS’’. 
(5) Paragraph (1) of section 420(e) of such 
Code is amended— 
(A) by inserting ‘‘and applicable life insur-
ance benefits’’ in subparagraph (A) after ‘‘ap-
plicable health benefits’’, and 
(B) by striking ‘‘HEALTH’’ in the heading 
thereof. 
(6) Subparagraph (B) of section 420(e)(1) of 
such Code is amended— 
(A) in the matter preceding clause (i), by 
inserting ‘‘(determined separately for applicable 
health benefits and applicable life insurance 
benefits)’’ after ‘‘shall be reduced by the 
amount’’, 
(B) in clause (i), by inserting ‘‘or applica-
ble life insurance accounts’’ after ‘‘health ben-
efit accounts’’, and 
(C) in clause (i), by striking ‘‘qualified cur-
rent retiree health liability’’ and inserting 
‘‘qualified current retiree liability’’. 
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(B) in clause (ii), by striking ‘‘health plan’’ 
and inserting ‘‘plan’’. 
(12) Subparagraph (B) of section 420(f)(6) of 
such Code is amended— 
(A) in clause (i), by inserting ‘‘, and collec-
tively bargained life insurance benefits,’’ after 
‘‘collectively bargained health benefits’’, 
(B) in clause (ii)— 
(i) by adding at the end the following: 
‘‘The preceding sentence shall be applied 
separately for collectively bargained health 
benefits and collectively bargained life in-
surance benefits.’’, and 
(ii) by inserting ‘‘, applicable life in-
surance accounts,’’ after ‘‘health benefit 
accounts’’, and 
(C) by striking ‘‘HEALTH’’ in the heading 
thereof. 
(13) Subparagraph (E) of section 420(f)(6) of 
such Code, as redesignated by subsection (b), is 
amended— 
(A) by striking ‘‘bargained health’’ and in-
serting ‘‘bargained’’, 
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(B) by inserting ‘‘, or a group-term life in-
surance plan or arrangement for retired em-
ployees,’’ after ‘‘dependents’’, and 
(C) by striking ‘‘HEALTH’’ in the heading 
thereof. 
(14) Section 101(e) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1021(e)) is amended— 
(A) in paragraphs (1) and (2), by inserting 
‘‘or applicable life insurance account’’ after 
‘‘health benefits account’’ each place it appears, 
and 
(B) in paragraph (1), by inserting ‘‘or ap-
plicable life insurance benefit liabilities’’ after 
‘‘health benefits liabilities’’. 
(f) TECHNICAL CORRECTION.—Clause (iii) of section 
420(f)(6)(B) is amended by striking ‘‘416(I)(1)’’ and in-
serting ‘‘416(i)(1)’’. 
(g) REPEAL OF DEADWOOD.— 
(1) Subparagraph (A) of section 420(b)(1) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘in a taxable year beginning after December 
31, 1990’’. 
(2) Subsection (b) of section 420 of such Code 
is amended by striking paragraph (4) and by redes-
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ignating paragraph (5), as amended by this Act, as 
paragraph (4). 
(3) Paragraph (2) of section 420(b) of such 
Code, as amended by this section, is amended— 
(A) by striking subparagraph (B), and 
(B) by striking ‘‘PER
YEAR.—’’ and all 
that follows through ‘‘No more than’’ and in-
serting ‘‘PER YEAR.—No more than’’. 
(4) Paragraph (2) of section 420(c) of such 
Code is amended— 
(A) by striking subparagraph (B), 
(B) by moving subparagraph (A) two ems 
to the left, and 
(C) by striking ‘‘BEFORE
TRANSFER.—’’ 
and all that follows through ‘‘The requirements 
of this paragraph’’ and inserting the following: 
‘‘BEFORE TRANSFER.—The requirements of this 
paragraph’’. 
(5) Paragraph (2) of section 420(d) of such 
Code is amended by striking ‘‘after December 31, 
1990’’. 
(h) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to transfers made after the 
date of the enactment of this Act. 
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(2) CONFORMING AMENDMENTS RELATING TO 
PENSION PROTECTION ACT.—The amendments made 
by subsections (b)(3)(B) and (f) shall take effect as 
if included in the amendments made by section 
841(a) of the Pension Protection Act of 2006. 
Æ 
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