[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1784 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1784

 To amend the Internal Revenue Code of 1986 to modify the pension plan 
          rules applicable to State judicial retirement plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 1997

   Mr. Hyde 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 modify the pension plan 
          rules applicable to State judicial retirement plans.

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

SECTION 1. MODIFICATIONS RELATING TO STATE JUDICIAL RETIREMENT PLANS.

    (a) Nondiscrimination Requirements.--Paragraph (5) of section 
401(a) of the Internal Revenue Code of 1986 (relating to qualified 
pension, profit-sharing, and stock bonus plans) is amended by adding at 
the end the following new subparagraph:
                    ``(G) State judicial retirement plans.--A State 
                judicial retirement plan (as defined in section 414(v)) 
                shall not be considered discriminatory within the 
                meaning of paragraph (4).''
    (b) Additional Participation Requirements.--Paragraph (26) of 
section 401(a) of such Code is amended by redesignating subparagraphs 
(H) and (I) as subparagraphs (I) and (J), respectively, and by 
inserting after subparagraph (G) the following new subparagraph:
                    ``(H) This paragraph shall not apply to any State 
                judicial retirement plan (as defined in section 
                414(v)).''
    (c) Application of Minimum Participation Standards.--
            (1) Subsection (c) of section 410 of such Code (relating to 
        minimum participation standards) is amended by adding at the 
        end the following new paragraph:
            ``(3) A State judicial retirement plan (as defined in 
        section 414(v)) shall be treated as meeting the requirements of 
        this section for purposes of section 401(a).''
            (2) Paragraph (1) of section 410(c) of such Code is amended 
        by striking ``paragraph (2)'' in the material preceding 
        subparagraph (A) and inserting ``paragraphs (2) and (3)''.
            (3) Paragraph (2) of section 410(c) of such Code is amended 
        by striking ``A plan'' and inserting ``Except as provided in 
        paragraph (3), a plan''.
    (d) State Judicial Retirement Plan Defined.--Section 414 of such 
Code is amended by adding at the end the following new subsection:
    ``(v) State Judicial Retirement Plan.--For purposes of sections 401 
and 410, the term `State judicial retirement plan' means a plan (or any 
portion of a plan) established and maintained for its employees by the 
government of any State or any political subdivision thereof, or by any 
agency or instrumentality of the foregoing, and which provides for 
participation, coverage, contributions, or benefits which are primarily 
for, by, or on behalf of judges or justices appointed or elected in 
accordance with the constitution and laws of such State, political 
subdivision, or agency or instrumentality.''
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning on or after the date of the 
        enactment of this Act.
            (2) Treatment for years beginning before date of 
        enactment.--In the case of a State judicial retirement plan (as 
        defined in section 414(v) of the Internal Revenue Code of 
        1986), such plan shall be treated as satisfying the 
        requirements of sections 401(a)(4), 401(a)(26), and 410 of such 
        Code for all taxable years beginning before the date of the 
        enactment of this Act.
                                 <all>