[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1209 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1209

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 1999

 Mr. Murkowski (for himself, Mr. Stevens, and Mr. Santorum) 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 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.

    Except as otherwise expressly provided, 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 of 
1986.

SEC. 2. GENERAL RETIREMENT PLAN LIMITS.

    (a) Defined Benefit Plans.--
            (1) Dollar limit.--
                    (A) In general.--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) Age adjustments.--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''.
                    (C) Collectively bargained plans.--Paragraph (7) of 
                section 415(b) (relating to benefits under certain 
                collectively bargained plans) is amended by striking 
                ``the greater of $68,212 or one-half the amount 
                otherwise applicable for such year under paragraph 
                (1)(A) for `$90,000''' and inserting ``one-half the 
                amount otherwise applicable for such year under 
                paragraph (1)(A) for `$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 an 
                        organization (other than a governmental unit) 
                        exempt from tax under this subtitle, 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.--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) Exempt organization plan 
                                covering 50 percent of its employees.--
                                A plan shall be treated as a plan 
                                maintained by an organization (other 
                                than a governmental unit) exempt from 
                                tax under this subtitle if at least 50 
                                percent of the employees 
benefiting under the plan are employees of an organization (other than 
a governmental unit) exempt from tax under this subtitle. If less than 
50 percent of the employees benefiting under a plan are employees of an 
organization (other than a governmental unit) exempt from tax under 
this subtitle, the plan shall be treated as a plan maintained by an 
organization (other than a governmental unit) exempt from tax under 
this subtitle 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.--
            (1) In general.--Subparagraph (B) of section 415(c)(1) 
        (relating to limitation for defined contribution plans) is 
        amended to read as follows:
                    ``(B) the participants' compensation.''
            (2) Conforming amendment.--Section 415(n)(2)(B) is amended 
        by striking ``percentage''.
    (c) Cost-of-Living Adjustments.--
            (1) Plans maintained by governments and tax exempt 
        organizations.--Paragraph (1) of section 415(d) (as amended by 
        subsection (a)) 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) (as 
        amended by subsection (a)) 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) $180,000 amount.--Any increase under 
                subparagraph (A) or (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 (D) of section 
        415(d)(3) (as amended 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, except 
        that such plan shall be combined or aggregated with another 
        plan which is not such a multiemployer plan solely for purposes 
        of determining whether such other plan meets the requirements 
        of subsection (b)(1)(A).''.
            (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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