I 
117TH CONGRESS 
1ST SESSION H. R. 3874 
To amend the Internal Revenue Code of 1986 to provide that governmental 
pension plans may include certain firefighters, emergency medical techni-
cians, and paramedics, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2021 
Mr. MCHENRY (for himself, Mr. HUDSON, Mr. MURPHY of North Carolina, 
Mr. CAWTHORN, Mr. ROUZER, Mr. BUDD, Mr. BISHOP of North Caro-
lina, and Ms. FOXX) introduced the following bill; which was referred to 
the Committee on Education and Labor, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined 
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 to provide 
that governmental pension plans may include certain fire-
fighters, emergency medical technicians, and paramedics, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. GOVERNMENTAL PENSION PLANS MAY IN-
CLUDE 
CERTAIN 
FIREFIGHTERS, 
EMER-
GENCY MEDICAL TECHNICIANS, AND PARA-
MEDICS. 
(a) IN GENERAL.—Section 414(d) of the Internal 
Revenue Code of 1986 (relating to governmental plans) 
is amended by adding at the end the following: ‘‘The term 
‘governmental plan’ also includes a plan which is estab-
lished by a State or political subdivision thereof and main-
tained by a public safety agency (described in section 
501(c) and exempt from taxation under section 501(a)), 
and all of the participants of which are employees of such 
agency who are emergency response providers (defined in 
section 2 of the Homeland Security Act of 2022 (6 U.S.C. 
101)), substantially all of whose services as emergency re-
sponse providers are in the performance of firefighting 
services or out-of-hospital emergency medical services for 
a political subdivision of a State under a contract between 
such public safety agency and the political subdivision of 
a State.’’ 
(b) EMPLOYEE RETIREMENT INCOME SECURITY ACT 
OF 1974.— 
(1) IN GENERAL.—Section 3(32) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(32)) is amended by adding at the end 
the following: ‘‘The term ‘governmental plan’ also 
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includes a plan which is established by a State or 
political subdivision thereof and maintained by a 
public safety agency (described in section 501(c) of 
the Internal Revenue Code of 1986 and exempt from 
taxation under section 501(a) of such Code), and all 
of the participants of which are employees of such 
agency who are emergency response providers (de-
fined in section 2 of the Homeland Security Act of 
19 2002 (6 U.S.C. 101)), substantially all of whose 
services as emergency response providers are in the 
performance of firefighting services or out-of-hos-
pital emergency medical services for a political sub-
division of a State under a contract between such 
public safety agency and the political subdivision of 
a State.’’ 
(2) PBGC EXCEPTION.—Section 4021(b)(2) of 
such Act is amended by striking ‘‘described in the 
last sentence of section 3(32)’’ and inserting ‘‘de-
scribed in either of the last two sentences of section 
3(32)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 414(h)(2) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘described in 
the last sentence of section 414(d) (relating to plans 
of Indian tribal governments)’’ and inserting ‘‘de-
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scribed in either of the last two sentences of sub-
section (d)’’. 
(2) Section 415(b)(2)(H)(i) of such Code is 
amended by adding at the end the following: ‘‘or a 
public safety agency described in the last sentence of 
section 414(d)’’. 
(3) Section 415(b)(2)(H)(ii)(I) of such Code is 
amended by striking ‘‘or any political subdivision’’ 
and inserting ‘‘any political subdivision, or a public 
safety agency described in the last sentence of sec-
tion 414(d)’’. 
(4) Section 415(b)(10)(A) of such Code is 
amended by striking ‘‘described in the last sentence 
of section 414(d) (relating to plans of Indian tribal 
governments)’’ and inserting ‘‘described in either of 
the last two sentences of section 414(d)’’. 
(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to plan years beginning after the 
date of the enactment of this Act. 
Æ 
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