[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 69 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 69

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


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                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

    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 one-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. SHORT TITLE.

    This Act may be cited as the ``Retirement Protection Act Amendments 
of 1997''.

SEC. 2. 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.
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