I
103D CONGRESS
2D SESSION
H. R. 4648
To amend the Internal Revenue Code of 1986 to provide an exclusion from
gross income for that portion of a governmental pension received by
an individual which does not exceed the maximum benefits payable under
title II of the Social Security Act which could have been excluded from
income for the taxable year.
IN THE HOUSE OF REPRESENTATIVES
JUNE 24, 1994
Mr. VENTO 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 provide
an exclusion from gross income for that portion of a
governmental pension received by an individual which
does not exceed the maximum benefits payable under
title II of the Social Security Act which could have
been excluded from income for the taxable year.
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 Parity
Act of 1994’’.
HR 4648 IH
SEC. 2. EXCLUSION FOR CERTAIN PENSIONS AND ANNU-
ITIES UNDER PUBLIC RETIREMENT SYSTEMS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from income) is amended by re-
designating section 136 as section 137 and by inserting
after section 135 the following new section:
‘‘SEC. 136. CERTAIN PENSIONS AND ANNUITIES UNDER
PUBLIC RETIREMENT SYSTEMS.
‘‘(a) GENERAL RULE.—Gross income does not in-
clude any amount (otherwise includable in gross income)
received by an individual as a qualified governmental pen-
sion.
‘‘(b) LIMITATIONS.—
‘‘(1) DOLLAR
LIMITATION.—The aggregate
amount excluded under subsection (a) for the tax-
able year shall not exceed—
‘‘(A) the maximum excludable social secu-
rity benefits of the taxpayer for such year, re-
duced by
‘‘(B) the social security benefits (within
the meaning of section 86(d)) received by the
taxpayer during such year which were excluded
from gross income.
‘‘(2) SERVICE REQUIREMENT.—Subsection (a)
shall not apply to any qualified governmental pen-
HR 4648 IH
sion received by the taxpayer during the taxable year
unless the taxpayer (or the spouse or former spouse
of the taxpayer) performed the service giving rise to
such pension.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
GOVERNMENTAL
PENSION.—
The term ‘qualified governmental pension’ means
any pension or annuity received under a public re-
tirement system to the extent such pension or annu-
ity is not attributable to service—
‘‘(A) which constitutes employment for
purposes of chapter 21 (relating to the Federal
Insurance Contributions Act), or
‘‘(B) which is covered by an agreement
made pursuant to section 218 of the Social Se-
curity Act.
‘‘(2) MAXIMUM EXCLUDABLE SOCIAL SECURITY
BENEFITS.—The term ‘maximum excludable social
security benefits’ means an amount equal to so
much of the applicable maximum benefit amount for
the taxpayer for the taxable year which would be ex-
cluded from gross income if such benefit amount
were treated as social security benefits (within the
meaning of section 86(d)) received during the tax-
able year.
HR 4648 IH
‘‘(3) 
APPLICABLE
MAXIMUM
BENEFIT
AMOUNT.—The term ‘applicable maximum benefit
amount’ means—
‘‘(A) in the case of an unmarried individ-
ual, the maximum individual social security
benefit,’
‘‘(B) in the case of a joint return, 150 per-
cent of the maximum individual social security
benefit, or
‘‘(C) in the case of a married individual fil-
ing a separate return, 75 percent of the maxi-
mum individual social security benefit.
For purposes of the preceding sentence, marital sta-
tus shall be determined under section 7703.
‘‘(4) MAXIMUM INDIVIDUAL SOCIAL SECURITY
BENEFIT.—
‘‘(A) IN GENERAL.—The term ‘maximum
individual social security benefit’ means, with
respect to any taxable year, the maximum total
amount (as certified by the Secretary of Health
and Human Services to the Secretary) which
could be paid for all months in the calendar
year ending in the taxable year as old-age in-
surance benefits under section 202(a) of the So-
cial Security Act (without regard to any reduc-