[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2082 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2082

To amend the Internal Revenue Code of 1986 to restore pension limits to 
               equitable levels, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 8, 1999

 Mr. Young of Alaska 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 restore pension limits to 
               equitable levels, 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. AMENDMENT OF 1986 CODE.

    Whenever in this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code.

SEC. 2. INCREASE IN RETIREMENT PLAN LIMITS.

    (a) Defined Benefit Plans.--
            (1) Dollar limit.--
                    (A) Subparagraph (A) of section 415(b)(1) (relating 
                to limitation for defined benefit plans) is amended by 
                striking ``$90,000'' and inserting ``$180,000''.
                    (B) Subparagraphs (C) and (D) of section 415(b)(2) 
                are each amended by striking ``$90,000'' each place it 
                appears in the headings and the text and inserting 
                ``$180,000''.
            (2) Limit reduced when benefit begins before age 62.--
        Subparagraph (C) of section 415(b)(2) is amended by striking 
        ``the social security retirement age'' each place it appears in 
        the heading and text and inserting ``age 62''.
            (3) Limit increased when benefit begins after age 65.--
        Subparagraph (D) of section 415(b)(2) is amended by striking 
        ``the social security retirement age'' each place it appears in 
        the heading and text and inserting ``age 65''.
            (4) Multiemployer plans and plans maintained by governments 
        and tax exempt organizations.--Subparagraph (F) of section 
        415(b)(2) is amended to read as follows:
                    ``(F) Multiemployer plans and plans maintained by 
                governments and tax-exempt organizations.--
                            ``(i) In general.--In the case of a 
                        governmental plan (within the meaning of 
                        section 414(d)), a plan maintained by a tax-
                        exempt organization, a multiemployer plan (as 
                        defined in section 414(f)), or a qualified 
                        merchant marine plan, subparagraph (C) shall be 
                        applied as if the last sentence thereof read as 
                        follows: `The reduction under this subparagraph 
                        shall not reduce the limitation of paragraph 
                        (1)(A) below (i) $130,000 if the benefit begins 
                        at or after age 55, or (ii) if the benefit 
                        begins before age 55, the equivalent of the 
                        $130,000 limitation for age 55.'
                            ``(ii) Definitions and special rule.--For 
                        purposes of this subparagraph--
                                    ``(I) Qualified merchant marine 
                                plan.--The term `qualified merchant 
                                marine plan' means a plan in existence 
                                on January 1, 1986, the participants in 
                                which are merchant marine officers 
                                holding licenses issued by the 
                                Secretary of Transportation under title 
                                46, United States Code.
                                    ``(II) Tax-exempt organization.--
                                The term `tax-exempt organization' 
                                means any organization (other than a 
                                governmental unit) exempt from tax 
                                under this subtitle.
                                    ``(III) Tax-exempt organization 
                                plan covering 50 percent of its 
                                employees.--A plan shall be treated as 
                                a plan maintained by a tax-exempt 
                                organization if at least 50 percent of 
                                the employees benefiting under the plan 
                                are employees of a tax-exempt 
                                organization. If less than 50 percent 
                                of the employees benefiting under a 
                                plan are employees of a tax-exempt 
                                organization, the plan shall be treated 
                                as a plan maintained by a tax-exempt 
                                organization only with respect to 
                                employees of such an organization.''.
            (5) Cost-of-living adjustments.--Subsection (d) of section 
        415 (related to cost-of-living adjustments) is amended--
                    (A) in paragraph (1)(A) by striking ``$90,000'' and 
                inserting ``$180,000'', and
                    (B) in paragraph (3)(A)--
                            (i) by striking ``$90,000'' in the heading 
                        and inserting ``$180,000'', and
                            (ii) by striking ``October 1, 1986'' and 
                        inserting ``July 1, 1999''.
    (b) Defined Contribution Plans.--Subparagraph (B) of section 
415(c)(1) (relating to limitation for defined contribution plans) is 
amended to read as follows:
                    ``(B) the participant's compensation.''.
    (c) Cost-of-Living Adjustments.--
            (1) Plans maintained by governments and tax-exempt 
        organizations.--Paragraph (1) of section 415(d) is amended by 
        striking ``and'' at the end of subparagraph (B), by 
        redesignating subparagraph (C) as subparagraph (D), and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) the $130,000 amount in subsection (b)(2)(F), 
                and''.
            (2) Base period.--Paragraph (3) of section 415(d) is 
        amended by redesignating subparagraph (D) as subparagraph (E) 
        and by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) $130,000 amount.--The base period taken into 
                account for purposes of paragraph (1)(C) is the 
                calendar quarter beginning July 1, 1999.''.
            (3) Rounding rule relating to defined benefit plans.--
        Paragraph (4) of section 415(d) is amended to read as follows:
            ``(4) Rounding.--
                    ``(A) In general.--Any increase under subparagraphs 
                (A) and (D) of paragraph (1) which is not a multiple of 
                $5,000 shall be rounded to the next lowest multiple of 
                $5,000.
                    ``(B) $130,000 amount.--Any increase under 
                subparagraph (C) of paragraph (1) which is not a 
                multiple of $1,000 shall be rounded to the next lowest 
                multiple of $1,000.''.
            (4) Conforming amendment.--Subparagraph (E) of section 
        415(d)(3) (as redesignated by paragraph (2)) is amended by 
        striking ``paragraph (1)(C)'' and inserting ``paragraph 
        (1)(D)''.

SEC. 3. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415.

    (a) Compensation Limit.--Paragraph (11) of section 415(b) (relating 
to limitation for defined benefit plans) is amended to read as follows:
            ``(11) Special limitation rule for governmental and 
        multiemployer plans.--In the case of a governmental plan (as 
        defined in section 414(d)) or a multiemployer plan (as defined 
        in section 414(f)), subparagraph (B) of paragraph (1) shall not 
        apply.''.
    (b) Combining and Aggregation of Plans.--
            (1) Combining of plans.--Subsection (f) of section 415 
        (relating to combining of plans) is amended by adding at the 
        end the following:
            ``(3) Exception for multiemployer plans.--Notwithstanding 
        paragraph (1) and subsection (g), a multiemployer plan (as 
        defined in section 414(f)) shall not be combined or aggregated 
        with any other plan maintained by an employer for purposes of 
        applying the limitations established in this section.''.
            (2) Conforming amendment for aggregation of plans.--
        Subsection (g) of section 415 (relating to aggregation of 
        plans) is amended by striking ``The Secretary'' and inserting 
        ``Except as provided in subsection (f)(3), the Secretary''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to years beginning 
after December 31, 1999.
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