I
104TH CONGRESS
1ST SESSION
H. R. 1893
To amend the Internal Revenue Code of 1986 to exclude length of service
awards to volunteers performing fire fighting or prevention services,
emergency medical services, or ambulance services from the limitations
applicable to certain deferred compensation plans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 1995
Mr. HOUGHTON (for himself, Mr. MCNULTY, Mr. ACKERMAN, Mr. BUNNING
of Kentucky, Mr. VOLKMER, and Mr. SHAW) 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 exclude
length of service awards to volunteers performing fire
fighting or prevention services, emergency medical serv-
ices, or ambulance services from the limitations applica-
ble to certain deferred compensation plans, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TREATMENT OF LENGTH OF SERVICE AWARDS
TO VOLUNTEERS PERFORMING FIRE FIGHT-
ING OR PREVENTION SERVICES, EMERGENCY
MEDICAL SERVICES, OR AMBULANCE SERV-
ICES.
(a) IN GENERAL.—Paragraph (11) of section 457(e)
of the Internal Revenue Code of 1986 (relating to deferred
compensation plans of State and local governments and
tax-exempt organizations) is amended to read as follows:
‘‘(11) CERTAIN PLANS EXCLUDED.—
‘‘(A) IN
GENERAL.—The following plans
shall be treated as not providing for the defer-
ral of compensation:
‘‘(i) Any bona fide vacation leave, sick
leave, compensatory time, severance pay,
disability pay, or death benefit plan.
‘‘(ii) Any plan paying solely length of
service awards to bona fide volunteers (or
their beneficiaries) on account of qualified
services performed by such volunteers.
‘‘(B) SPECIAL
RULES
APPLICABLE
TO
LENGTH OF SERVICE AWARD PLANS.—An indi-
vidual shall be treated as a bona fide volunteer
for purposes of subparagraph (A)(ii) if the only
compensation received by such individual for
performing qualified services is in the form of—
‘‘(i) reimbursement for (or a reason-
able allowance for) reasonable expenses in-
curred in the performance of such services,
or
‘‘(ii) reasonable benefits (including
length of service awards), and nominal fees
for such services, customarily paid by eligi-
ble employers in connection with the per-
formance of such services by volunteers.
‘‘(C) QUALIFIED SERVICES.—For purposes
of this paragraph, the term ‘qualified services’
means fire fighting and prevention services,
emergency medical services, and ambulance
services.’’
(b) EXEMPTION FROM SOCIAL SECURITY TAXES.—
(1) Subsection (i) of section 3121 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(6) VOLUNTEERS
PERFORMING
FIRE
AND
MEDICAL SERVICES.—For purposes of this chapter,
the term ‘wages’ shall not include—
‘‘(A) any amount deferred under a plan de-
scribed in section 457(e)(11)(A)(ii) and main-
tained by an eligible employer (as defined in
section 457(e)(1)), and
‘‘(B) any payment from such a plan.’’
(2) Section 209 of the Social Security Act is
amended by adding at the end the following new
subsection:
‘‘(l) For purposes of this title, the term ‘wages’ shall
not include—
‘‘(1) any amount deferred under a plan de-
scribed in section 457(e)(11)(A)(ii) of the Internal
Revenue Code of 1986 and maintained by an eligible
employer (as defined in section 457(e)(1) of such
Code), and
‘‘(2) any payment from such a plan.’’
(c) EFFECTIVE DATE.—
(1) SUBSECTION (a).—The amendment made
by subsection (a) shall apply to taxable years begin-
ning after the date of the enactment of this Act.
(2) SUBSECTION (b).—The amendment made
by subsection (b) shall apply to remuneration paid
after the date of the enactment of this Act.
Æ