Title: Volunteer Emergency Services Recruitment and Retention Act of 2019
Policy area: Taxation

Summary:
Volunteer Emergency Services Recruitment and Retention Act of 2019
This bill amends the Internal Revenue Code to provide for the treatment of length of service award plans as eligible deferred compensation plans for retirement plan purposes. It also exempts such length of service award plans from requirements relating to employee pension benefit plans under the Employee Retirement Income Security Act (ERISA).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2214 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2214

To amend the Internal Revenue Code of 1986 to provide a better defined 
  recruitment and retention incentive program for volunteer emergency 
                            service workers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2019

Ms. Collins (for herself and Mr. Cardin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a better defined 
  recruitment and retention incentive program for volunteer emergency 
                            service workers.

    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 ``Volunteer Emergency Services 
Recruitment and Retention Act of 2019''.

SEC. 2. ELECTIVE TREATMENT OF LENGTH OF SERVICE AWARD PLANS AS ELIGIBLE 
              DEFERRED COMPENSATION PLANS.

    (a) In General.--Section 457(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(19) Additional special rules applicable to length of 
        service award plans.--
                    ``(A) In general.--The term `eligible deferred 
                compensation plan' includes, at the election of its 
                sponsor, any length of service award plan described in 
                paragraph (11)(A)(ii) which meets the requirements of 
                paragraph (11)(B). Any such election, once made, shall 
                be irrevocable.
                    ``(B) Special rules.--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--
                            ``(i) In general.--Such sponsor shall be 
                        treated as an eligible employer described in 
                        subsection (e)(1)(A), and, except as provided 
                        in clauses (ii) and (iii), such plan shall be 
                        administered in a manner consistent with the 
                        requirements of this section.
                            ``(ii) Maximum deferral amount.--Subsection 
                        (b)(2) shall be applied by substituting `the 
                        limitation on accruals in effect under 
                        paragraph (11)(B)' for `the lesser of--' and 
                        all that follows through `compensation,' in 
                        subparagraph (B) thereof.
                            ``(iii) Distribution requirements.--
                        Subsection (d)(1)(A) shall be applied by 
                        deeming a severance from employment to have 
                        occurred for purposes of clause (ii) thereof on 
                        the payment date under the terms of the 
                        plan.''.
    (b) Exemption From Employee Retirement Income Security Act of 
1974.--For purposes of the Employee Retirement Income Security Act of 
1974, a length of service award plan described in section 
457(e)(11)(A)(ii) of the Internal Revenue Code of 1986 whose sponsor 
has elected under section 457(e)(19) of such Code to have such plan 
treated as an eligible deferred compensation plan shall not be treated 
as an employee pension benefit plan or a pension plan under section 
3(2) of such Act (29 U.S.C. 1002(2)).
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.
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