Title: Vested Employee Pension Benefit Protection Act
Policy area: Taxation

Summary:
Vested Employee Pension Benefit Protection Act
This bill amends the Internal Revenue Code to allow employees in the building and construction industry who have attained age 55 and are not separated from employment to make distributions from certain tax-exempt multiemployer pension plans if they were participants in such plan on or before April 30, 2013. Such payments shall be suspended during any period in which the multiemployer pension plan is in endangered or critical status.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4043 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4043

To amend the Internal Revenue Code of 1986 to protect employees in the 
      building and construction industry who are participants in 
              multiemployer plans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2019

 Mr. Luetkemeyer (for himself, Mr. Clay, Mr. Bost, Mr. Rodney Davis of 
  Illinois, and Mr. Shimkus) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
   Committee on Education and Labor, 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 protect employees in the 
      building and construction industry who are participants in 
              multiemployer plans, 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. SHORT TITLE.

    This Act may be cited as the ``Vested Employee Pension Benefit 
Protection Act''.

SEC. 2. MINIMUM AGE FOR DISTRIBUTIONS DURING WORKING RETIREMENT.

    (a) Internal Revenue Code of 1986.--Section 401(a)(36) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(36) Distributions during working retirement.--
                    ``(A) In general.--A trust forming part of a 
                pension plan shall not be treated as failing to 
                constitute a qualified trust under this section solely 
                because the plan provides that a distribution may be 
                made from such trust to an employee who has attained 
                age 62 and who is not separated from employment at the 
                time of such distribution.
                    ``(B) Certain employees in the building and 
                construction industry.--
                            ``(i) In general.--In order to allow for 
                        unique conditions of employment in the building 
                        and construction industry, subparagraph (A) 
                        shall be applied by substituting `age 55' for 
                        `age 62' in the case of a multiemployer plan 
                        described in section 4203(b)(1)(B)(i) of the 
                        Employee Retirement Income Security Act of 
                        1974, with respect to individuals who were 
                        participants in such plan on or before April 
                        30, 2013, if--
                                    ``(I) the trust to which 
                                subparagraph (A) applies was in 
                                existence before January 1, 1970,
                                    ``(II) before December 31, 2011, at 
                                a time when the plan provided that 
                                distributions may be made to an 
                                employee who has attained age 55 and 
                                who is not separated from employment at 
                                the time of such distribution, the plan 
                                received at least 1 written 
                                determination from the Internal Revenue 
                                Service that the trust to which 
                                subparagraph (A) applies constituted a 
                                qualified trust under this section, and
                                    ``(III) the plan provides that the 
                                benefit accrued on account of service 
                                performed after distributions begin 
                                under subparagraph (A) (as modified by 
                                subparagraph (B) without regard to this 
                                subclause) shall be treated and paid as 
                                a pension separate from the pension 
                                earned before such distributions begin, 
                                and that payment of such separate 
                                benefit shall not commence until the 
                                employee attains the plan's normal 
                                retirement age.
                            ``(ii) Suspension of payments if plan in 
                        endangered or critical status.--Clause (i) 
                        shall not apply to a multiemployer plan during 
                        the period for which the multiemployer plan is 
                        in endangered or critical status (as defined 
                        under section 432) beginning after the first 
                        year the plan is in either of such statuses and 
                        ending with the first plan year for which the 
                        plan is not in either of such statuses.''.
    (b) Employee Retirement Income Security Act of 1974.--Section 
3(2)(A) of Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(2)(A)) is amended by inserting before the period at the end the 
following: ``(age 55 in the case of a plan to which section 
401(a)(36)(B) of the Internal Revenue Code of 1986 applies)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made before, on, or after the date of the 
enactment of this Act.
                                 <all>