I 
112TH CONGRESS 
1ST SESSION 
H. R. 376 
To amend the Internal Revenue Code of 1986 to provide recruitment and 
retention incentives for volunteer emergency service workers. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 20, 2011 
Mr. KING of New York (for himself, Mr. PASCRELL, Mr. ISRAEL, Mr. BISHOP 
of New York, Mrs. LOWEY, Mr. CROWLEY, Mr. HOLDEN, Mr. 
COURTNEY, Mr. HINCHEY, and Mr. BRALEY of Iowa) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and the Workforce, 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 com-
mittee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
recruitment and retention incentives for volunteer emer-
gency service workers. 
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 ‘‘Volunteer Emergency 
Services Recruitment and Retention Act of 2011’’. 
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SEC. 2. ELECTIVE TREATMENT OF LENGTH OF SERVICE 
AWARD PROGRAMS AS ELIGIBLE DEFERRED 
COMPENSATION PLANS. 
(a) IN GENERAL.—Subsection (e) of section 457 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(19) SPECIAL RULES APPLICABLE TO LENGTH 
OF SERVICE AWARD PLANS.— 
‘‘(A) IN GENERAL.—The term ‘eligible de-
ferred compensation plan’ shall include, at the 
election of its sponsor, any length of service 
award plan. Any such election shall be irrev-
ocable. In the case of a length of service award 
plan whose sponsor has elected to have such 
plan treated as an eligible deferred compensa-
tion plan, such plan shall be administered in a 
manner consistent with the requirements of this 
section and such sponsor shall be treated as an 
eligible employer described in paragraph (1)(A). 
‘‘(B) 
LENGTH
OF
SERVICE
AWARD 
PLAN.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘length 
of service award plan’ means any plan pay-
ing solely length of service awards to bona 
fide volunteers (or their beneficiaries) on 
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account of qualified services performed by 
such volunteers. 
‘‘(ii) BONA FIDE VOLUNTEER.—An in-
dividual shall be treated as a bona fide vol-
unteer if the only compensation received by 
such individual for performing qualified 
services is in the form of— 
‘‘(I) reimbursement for (or a rea-
sonable allowance for) reasonable ex-
penses incurred in the performance of 
such services, or 
‘‘(II) reasonable benefits (includ-
ing length of service awards), and fees 
for such services, customarily paid by 
eligible employers in connection with 
the performance of such services by 
volunteers. 
‘‘(iii) 
QUALIFIED
SERVICES.—The 
term ‘qualified services’ means fire fighting 
and prevention services, emergency medical 
services, ambulance services, and emer-
gency rescue services. 
‘‘(C) MAXIMUM
DEFERRAL
AMOUNT.—In 
the case of a length of service award plan whose 
sponsor has elected to have such plan treated as 
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an eligible deferred compensation plan, sub-
section (b)(2) shall be applied by striking ‘the 
lesser of—’ and all that follows and inserting 
‘the applicable dollar amount,’. 
‘‘(D) DISTRIBUTION
REQUIREMENTS.—In 
the case of a length of service award plan whose 
sponsor has elected to have such plan treated as 
an eligible deferred compensation plan, sub-
section (d)(1)(A)(ii) shall be applied by deeming 
a severance from employment to have occurred 
at the later of— 
‘‘(i) the payment date under the terms 
of the plan, or 
‘‘(ii) the date on which the plan par-
ticipant ceases to perform qualified serv-
ices. 
‘‘(E) LIMITATION ON ACCRUALS.— 
‘‘(i) IN GENERAL.—In the case of a 
length of service award plan that is a de-
fined benefit plan (as defined in section 
414(j)) whose sponsor has not elected to 
have such plan treated as an eligible de-
ferred compensation plan, such plan shall 
be treated as not providing for the deferral 
of compensation if the aggregate amount 
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of length of service awards accruing with 
respect to any year of service for any bona 
fide volunteer does not exceed $5,500. In 
the case of a length of service award plan 
described in the preceding sentence that is 
a defined benefit plan (as defined in sec-
tion 414(j)), the limitation on the annual 
deferral shall apply to the actuarial present 
value of the aggregate amount of length of 
service awards accruing with respect to 
any year of service. Such actuarial present 
value shall be calculated using reasonable 
actuarial assumptions and methods assum-
ing payment shall be made under the most 
valuable form of payment of the length of 
service award under the program with pay-
ment commencing at the later of the ear-
liest age at which unreduced benefits are 
payable under the program or the partici-
pant’s current age. 
‘‘(ii) COST-OF-LIVING ADJUSTMENT.— 
In the case of taxable years beginning 
after December 31, 2012, the Secretary 
shall adjust the $5,500 amount under 
clause (i) at the same time and in the 
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same manner as under section 415(d), ex-
cept that the base period shall be the cal-
endar quarter beginning July 1, 2011, and 
any increase under this paragraph that is 
not a multiple of $500 shall be rounded to 
the next lowest multiple of $500.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (11) of section 457(e) of such 
Code is amended to read as follows: 
‘‘(11) CERTAIN PLANS EXCLUDED.—Any bona 
fide vacation leave, sick leave, compensatory time, 
severance pay, disability pay, or death benefit plan 
shall be treated as not providing for the deferral of 
compensation.’’. 
(2) Section 3121(a)(5)(I) of such Code is 
amended by striking ‘‘section 457(e)(11)(A)(ii)’’ and 
inserting ‘‘section 457(e)(19)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 3. EXEMPTION OF LENGTH OF SERVICE AWARD PRO-
GRAMS FROM THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974. 
The Secretary of Labor shall issue guidance clari-
fying that a length of service award program described 
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in section 457(e)(19) of the Internal Revenue Code of 
1986 is not an employee pension benefit plan under sec-
tion 3(2) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1002(2)). 
Æ 
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