Title: To amend the Internal Revenue Code of 1986 to clarify the treatment of certain retirement plan contributions picked up by governmental employers.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to permit the treatment of certain employer contributions made to public retirement plans as picked up by a governmental employing unit regardless of whether the participating employee is allowed to make an irrevocable election between the application of two alternative benefit formulas involving the same or different levels of employee contributions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3213 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3213

To amend the Internal Revenue Code of 1986 to clarify the treatment of 
    certain retirement plan contributions picked up by governmental 
                               employers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2019

     Mr. David P. Roe of Tennessee (for himself, Mr. Burchett, Mr. 
  Fleischmann, Mr. DesJarlais, Mr. Green of Tennessee, Mr. Kustoff of 
Tennessee, and Mr. John W. Rose of Tennessee) 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 clarify the treatment of 
    certain retirement plan contributions picked up by governmental 
                               employers.

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

SECTION 1. CLARIFICATION OF TREATMENT OF CERTAIN RETIREMENT PLAN 
              CONTRIBUTIONS PICKED UP BY GOVERNMENTAL EMPLOYERS.

    (a) In General.--Section 414(h)(2) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``For purposes of paragraph (1)'' and 
        inserting the following:
                    ``(A) In general.--For purposes of paragraph (1)'', 
                and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Treatment of elections between alternative 
                benefit formulas.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), a contribution shall not fail 
                        to be treated as picked up by an employing unit 
                        merely because the employee may make an 
                        irrevocable election between the application of 
                        two alternative benefit formulas involving the 
                        same or different levels of employee 
                        contributions.
                            ``(ii) Application to existing employees.--
                        Clause (i) shall be applied without regard to 
                        whether the employee is already covered by one 
                        of the benefit formulas referred to therein.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years ending after the date of the enactment of this Act.
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