[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1232 Introduced in Senate (IS)]

  1st Session
                                S. 1232

To amend the Internal Revenue Code of 1986 to exclude length of service 
 awards to volunteers performing fire fighting or prevention services, 
emergency medical services, or ambulance services from the limitations 
   applicable to certain deferred compensation plans, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 12 (legislative day, September 5), 1995

  Mr. D'Amato 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 exclude length of service 
 awards to volunteers performing fire fighting or prevention services, 
emergency medical services, or ambulance services from the limitations 
   applicable to certain deferred compensation 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. TREATMENT OF LENGTH OF SERVICE AWARDS TO VOLUNTEERS 
              PERFORMING FIRE FIGHTING OR PREVENTION SERVICES, 
              EMERGENCY MEDICAL SERVICES, OR AMBULANCE SERVICES.

    (a) In General.--Paragraph (11) of section 457(e) of the Internal 
Revenue Code of 1986 (relating to deferred compensation plans of State 
and local governments and tax-exempt organizations) is amended to read 
as follows:
            ``(11) Certain plans excluded.--
                    ``(A) In general.--The following plans shall be 
                treated as not providing for the deferral of 
                compensation:
                            ``(i) Any bona fide vacation leave, sick 
                        leave, compensatory time, severance pay, 
                        disability pay, or death benefit plan.
                            ``(ii) Any plan paying solely length of 
                        service awards to bona fide volunteers (or 
                        their beneficiaries) on account of qualified 
                        services performed by such volunteers.
                    ``(B) Special rules applicable to length of service 
                award plans.--An individual shall be treated as a bona 
                fide volunteer for purposes of subparagraph (A)(ii) if 
                the only compensation received by such individual for 
                performing qualified services is in the form of--
                            ``(i) reimbursement for (or a reasonable 
                        allowance for) reasonable expenses incurred in 
                        the performance of such services, or
                            ``(ii) reasonable benefits (including 
                        length of service awards), and nominal fees for 
                        such services, customarily paid by eligible 
                        employers in connection with the performance of 
                        such services by volunteers.
                    ``(C) Qualified services.--For purposes of this 
                paragraph, the term `qualified services' means fire 
                fighting and prevention services, emergency medical 
                services, and ambulance services.''
    (b) Exemption From Social Security Taxes.--
            (1) Subsection (i) of section 3121 of such Code is amended 
        by adding at the end the following new paragraph:
            ``(6) Volunteers performing fire and medical services.--For 
        purposes of this chapter, the term `wages' shall not include--
                    ``(A) any amount deferred under a plan described in 
                section 457(e)(11)(A)(ii) and maintained by an eligible 
                employer (as defined in section 457(e)(1)), and
                    ``(B) any payment from such a plan.''
            (2) Section 209 of the Social Security Act is amended by 
        adding at the end the following new subsection:
    ``(l) For purposes of this title, the term `wages' shall not 
include--
            ``(1) any amount deferred under a plan described in section 
        457(e)(11)(A)(ii) of the Internal Revenue Code of 1986 and 
        maintained by an eligible employer (as defined in section 
        457(e)(1) of such Code), and
            ``(2) any payment from such a plan.''
    (c) Effective Date.--
            (1) Subsection (a).--The amendment made by subsection (a) 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to remuneration paid after the date of the 
        enactment of this Act.
                                 <all>