I
104TH CONGRESS
1ST SESSION
H. R. 1048
To amend the Internal Revenue Code of 1986 and title I of the Employee
Retirement Income Security Act of 1974 with regard to pension integra-
tion, participation, and vesting requirements, to provide for division of
pension benefits upon divorce unless otherwise provided in qualified do-
mestic relations orders, to provide for studies relating to cost-of-living
adjustments and pension portability, to clarify the continued availability,
under provisions governing domestic relations orders, of remedies relating
to matters treated in such orders entered before 1985, and to provide
for entitlement of divorced spouses under the Railroad Retirement Act
of 1974 independent of the actual entitlement of the employee.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1995
Mrs. KENNELLY introduced the following bill; which was referred to the Com-
mittee on Ways and Means and, in addition, to the Committee on Eco-
nomic and Educational Opportunities, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 and title
I of the Employee Retirement Income Security Act of
1974 with regard to pension integration, participation,
and vesting requirements, to provide for division of pen-
sion benefits upon divorce unless otherwise provided in
qualified domestic relations orders, to provide for studies
relating to cost-of-living adjustments and pension port-
ability, to clarify the continued availability, under provi-
sions governing domestic relations orders, of remedies
relating to matters treated in such orders entered before
1985, and to provide for entitlement of divorced spouses
under the Railroad Retirement Act of 1974 independent
of the actual entitlement of the employee.
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 ‘‘Pension Reform Act
of 1995’’.
SEC. 2. PENSION INTEGRATION RULES.
(a) APPLICABILITY OF NEW INTEGRATION RULES
EXTENDED TO ALL EXISTING ACCRUED BENEFITS.—
Notwithstanding subsection (c)(1) of section 1111 of the
Tax Reform Act of 1986 (relating to effective date of ap-
plication of nondiscrimination rules to integrated plans)
(100 Stat. 2440), effective for plan years beginning after
the date of the enactment of this Act, the amendments
made by subsection (a) of such section 1111 shall also
apply to benefits attributable to plan years beginning on
or before December 31, 1988.
(b) INTEGRATION DISALLOWED
FOR SIMPLIFIED
EMPLOYEE PENSIONS.—
(1) IN GENERAL.—Subparagraph (D) of section
408(k)(3) of the Internal Revenue Code of 1986 (re-
lating to permitted disparity under rules limiting
discrimination under simplified employee pensions)
is repealed.
(2) CONFORMING AMENDMENT.—Subparagraph
(C) of such section 408(k)(3) is amended by striking
‘‘and except as provided in subparagraph (D),’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to taxable
years beginning on or after January 1, 1996.
(c) EVENTUAL REPEAL OF INTEGRATION RULES.—
Effective for plan years beginning on or after January 1,
2003—
(1) subparagraphs (C) and (D) of section
401(a)(5) of the Internal Revenue Code of 1986 (re-
lating to pension integration exceptions under non-
discrimination requirements for qualification) are re-
pealed, and subparagraph (E) of such section
401(a)(5) is redesignated as subparagraph (C); and
(2) subsection (l) of section 401 of such Code
(relating to nondiscriminatory coordination of de-
fined contribution plans with OASDI) is repealed.