To amend the Internal Revenue Code of 1986 to provide that governmental pension plans may include certain firefighters, emergency medical technicians, and paramedics, and for other purposes.
Bill: H.R.3874 | Sponsor: Rep. McHenry, Patrick T. (R-NC)
Policy area: Taxation

Summary:
This bill expands tax-exempt governmental pension plans to include plans maintained by a tax-exempt public safety agency all of whose employees are emergency response providers performing firefighting services or out-of-hospital emergency medical services.

To amend the Internal Revenue Code of 1986 to provide that governmental 
   pension plans may include certain firefighters, emergency medical 
          technicians, and paramedics, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. GOVERNMENTAL PENSION PLANS MAY INCLUDE CERTAIN FIREFIGHTERS, 
              EMERGENCY MEDICAL TECHNICIANS, AND PARAMEDICS.

    (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 established by a State or political subdivision thereof and 
maintained 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 response 
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 Employee 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 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 (defined 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-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.''
            (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 ``described 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 ``described in either of the last 
        two sentences of subsection (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 section 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.
                                 <all>