[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1258 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1258

 To amend the Internal Revenue Code of 1986 to allow a 1-time election 
of the interest rate to be used to determine present value for purposes 
       of pension cash-out restrictions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 18 (legislative day, September 5), 1995

    Mr. Kyl 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 allow a 1-time election 
of the interest rate to be used to determine present value for purposes 
       of pension cash-out restrictions, 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. INTEREST RATE FOR DETERMINATION OF PRESENT VALUE FOR 
              PURPOSES OF PENSION CASH-OUT RESTRICTIONS.

    (a) In General.--Subclause (II) of section 417(e)(3)(A)(ii) of the 
Internal Revenue Code of 1986 (relating to determination of present 
value) is amended by inserting ``, or, at the irrevocable election of 
the plan, an annual interest rate specified in the plan, which may not 
be less than 5 percent nor more than 8 percent'' after ``prescribe''.
    (b) Conforming Amendment.--Subclause (II) of section 
205(g)(3)(A)(ii) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1055(g)(3)(A)(ii)) is amended by inserting ``, or, at the 
irrevocable election of the plan, an annual interest rate specified in 
the plan, which may not be less than 5 percent nor more than 8 
percent'' after ``prescribe''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the amendments made by 
section 767 of the Uruguay Round Agreements Act.

SEC. 2. MODIFICATION OF CERTAIN ASSUMPTIONS FOR ADJUSTING BENEFITS OF 
              DEFINED BENEFIT PLANS FOR EARLY RETIREES.

    (a) In General.--Subparagraph (E) of section 415(b)(2) of the 
Internal Revenue Code of 1986 (relating to limitation on certain 
assumptions) is amended--
            (1) by striking ``Except as provided in clause (ii), for 
        purposes of adjusting any benefit or limitation under 
        subparagraph (B) or (C),'' in clause (i) and inserting ``For 
        purposes of adjusting any limitation under subparagraph (C) 
        and, except as provided in clause (ii), for purposes of 
        adjusting any benefit under subparagraph (B),'', and
            (2) by striking ``For purposes of adjusting the benefit or 
        limitation of any form of benefit subject to section 
        417(e)(3),'' in clause (ii) and inserting ``For purposes of 
        adjusting any benefit under subparagraph (B) for any form of 
        benefit subject to section 417(e)(3),''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the amendments made by 
section 767 of the Uruguay Round Agreements Act.
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