I
103D CONGRESS
1ST SESSION
H. R. 2023
To amend the Internal Revenue Code of 1986 to modify the treatment
of governmental plans under the rules governing retirement plans.
IN THE HOUSE OF REPRESENTATIVES
MAY 6, 1993
Mr. MATSUI (for himself, Mr. GIBBONS, Mr. PICKLE, Mr. RANGEL, Mr.
STARK, Mr. JACOBS, Mr. COYNE, Mr. ANDREWS of Texas, Mr. LEVIN,
Mr. CARDIN, Mr. MCDERMOTT, Mr. KLECZKA, Mr. LEWIS of Georgia,
Mr. PAYNE of Virginia, Mr. NEAL of Massachusetts, Mr. HOAGLAND, Mr.
MCNULTY, Mr. KOPETSKI, Mr. JEFFERSON, Mr. BREWSTER, Mr. REYN-
OLDS, Mr. ARCHER, Mr. CRANE, Mr. THOMAS of California, Mr. SHAW,
Mr. SUNDQUIST, Mrs. JOHNSON of Connecticut, Mr. BUNNING, Mr.
HOUGHTON, Mr. BEREUTER, and Mr. SHAYS) introduced the following
bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to modify
the treatment of governmental plans under the rules
governing retirement plans.
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 ‘‘Public Pension Equity
Restoration Act of 1993’’.
SEC. 2. TREATMENT OF GOVERNMENTAL PLANS UNDER
SECTION 415.
(a) DEFINITION OF COMPENSATION.—Subsection (k)
of section 415 of the Internal Revenue Code of 1986 (re-
garding limitations on benefits and contributions under
qualified plans) is amended by adding immediately after
paragraph (2) thereof the following new paragraph:
‘‘(3) DEFINITION OF COMPENSATION FOR GOV-
ERNMENTAL PLANS.—For purposes of this section,
in the case of a governmental plan (as defined in
section 414(d)), the term ‘compensation’ includes, in
addition to the amounts described in subsection
(c)(3)—
‘‘(A) any elective deferral (as defined in
section 402(g)(3)), and
‘‘(B) any amount which is contributed by
the employer at the election of the employee
and which is not includible in the gross income
of an employee under section 125 or 457.’’
(b) COMPENSATION LIMIT.—Subsection (b) of sec-
tion 415 of such Code is amended by adding immediately
after paragraph (10) the following new paragraph:
‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN-
MENTAL
PLANS.—In the case of a governmental
plan (as defined in section 414(d)), subparagraph
(B) of paragraph (1) shall not apply.’’
(d) EXEMPTION
FOR SURVIVOR
AND DISABILITY
BENEFITS.—Paragraph (2) of section 415(b) of such
Code is amended by adding at the end thereof the follow-
ing new subparagraph:
‘‘(I) EXEMPTION FOR SURVIVOR AND DIS-
ABILITY BENEFITS PROVIDED UNDER GOVERN-
MENTAL
PLANS.—Subparagraph (B) of para-
graph (1), subparagraph (C) of this paragraph,
and paragraph (5) shall not apply to—
‘‘(i) income received from a govern-
mental plan (as defined in section 414(d))
as a pension, annuity, or similar allowance
as the result of the recipient becoming dis-
abled by reason of personal injuries or
sickness, or
‘‘(ii) amounts received from a govern-
mental plan by the beneficiaries, survivors,
or the estate of an employee as the result
of the death of the employee.’’
(e) REVOCATION
OF GRANDFATHER ELECTION.—
Subparagraph (C) of section 415(b)(10) of such Code is
amended by adding at the end thereof the following new
sentence: ‘‘An election made pursuant to the preceding
sentence to have the provisions of this paragraph applied
to the plan may be revoked not later than the last day
of the 3rd plan year beginning after the date of enactment
with respect to all plan years as to which such election
has been applicable and all subsequent plan years: Pro-
vided, That any amount paid by the plan in a taxable year
ending after revocation of such election in respect of bene-
fits attributable to a taxable year during which such elec-
tion was in effect shall be includible in income by the re-
cipient in accordance with the rules of this chapter in the
taxable year in which such amount is received (except that
such amount shall be treated as received for purposes of
the limitations imposed by this section in the earlier tax-
able year or years to which such amount is attributable).’’
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
subsections (a), (b), (c), and (d) shall apply to tax-
able years beginning on or after the date of the en-
actment of this Act. The amendments made by sub-
section (e) shall apply with respect to election rev-
ocations adopted after the date of the enactment of
this Act.
(2) TREATMENT
FOR
YEARS
BEGINNING
BE-
FORE DATE OF ENACTMENT.—In the case of a gov-
ernmental plan (as defined in section 414(d) of the
Internal Revenue Code of 1986), such plan shall be
treated as satisfying the requirements of section 415
of such Code for all taxable years beginning before
the date of the enactment of this Act.
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