[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2558 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2558
To amend the Age Discrimination in Employment Act of 1967 with respect
to voluntary early retirement benefits and medical benefits.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 18, 2001
Mr. Petri (for himself, Mr. Kind, Mr. Green of Wisconsin, Mr.
Sensenbrenner, Mr. Ryan of Wisconsin, Ms. Baldwin, Mr. Barrett of
Wisconsin, Mr. Kleczka, and Mr. Peterson of Minnesota) introduced the
following bill; which was referred to the Committee on Education and
the Workforce
_______________________________________________________________________
A BILL
To amend the Age Discrimination in Employment Act of 1967 with respect
to voluntary early retirement benefits and medical benefits.
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 ``Teacher Voluntary Early Retirement
Incentive Act of 2001''.
SEC. 2. GOVERNMENTAL AND HIGHER EDUCATION VOLUNTARY EARLY RETIREMENT
INCENTIVE PLANS.
(a) Amendment.--Section 4(m) of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623) is amended to read as follows:
``(m) Voluntary Retirement Incentive Plans.--Notwithstanding
subsection (f)(2)(b), it shall not be a violation of subsection (a),
(b), (c), or (d) solely because a voluntary early retirement incentive
plan maintained by a local educational agency (as defined in section
14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801)) or an institution of higher education (as defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001)), provides for
supplemental benefits to an employee that are reduced or eliminated on
the basis of the employee's age at the time of such employee's
retirement, if--
``(1) the employer does not implement with respect to such
employee any age-based reduction or elimination of benefits
that are not such supplemental benefits, except as permitted by
other provisions of this Act;
``(2) such supplemental benefits are in addition to any
retirement or severance benefits which have been offered
generally to employees, independent of any early retirement or
exit-incentive plan, within the preceding 365 days; and
``(3) with respect to any plan supplemental benefits for
which an employee first becomes eligible after the enactment of
Teacher Voluntary Early Retirement Incentive Act of 2001--
``(i) any employee who attains the minimum age and
satisfies all non-age based conditions for receiving a
benefit under the plan has an opportunity lasting not
less than 180 days to elect to retire, and the plan
does not require retirement to occur sooner than 180
days after such election; and
``(ii) any employee who is not eligible to receive
the maximum supplemental benefits provided under the
plan because of the age of such employee at the time of
retirement was afforded a reasonable opportunity to
receive such maximum benefits at a previous time in
such employee's employment.''.
(b) Construction.--Except as otherwise provided in section 4(m)(3)
of the Age Discrimination in Employment Act of 1967 (29 U.S.C.
623(m)(3)), the amendment made by subsection (a) shall apply in
determining whether a voluntary employee early retirement incentive
plan maintained by a local educational agency (as defined in section
14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801)) or an institution of higher education (as defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001)), was in violation
of subsection (a), (b), (c), or (e) of section 4 of the Age
Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.) after
January 1, 1996.
SEC. 3. RETIREE MEDICAL BENEFITS COORDINATED WITH MEDICARE AND OTHER
GOVERNMENTAL AND EMPLOYER BENEFIT PLANS; VOLUNTARY EARLY
RETIREMENT INCENTIVE PLANS MAINTAINED BY LOCAL
EDUCATIONAL AGENCIES.
(a) Voluntary Early Retirement Incentive Plans Maintained by Local
Educational Agencies.--Section 4(l)(1) of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623(l)(1)) is amended by adding at
the end the following:
``A voluntary early retirement incentive plan maintained by a local
educational agency (as defined in Section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801)) which makes payments
or supplements as provided in clauses (i) or (ii) of subparagraph (B)
in coordination with a defined benefit plan (as defined in Section
3(35) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(35) maintained by a state or an agency thereof shall itself be
deemed to constitute a defined benefit plan for purposes of
subparagraph (B).''.
(b) Retiree Medical Benefits Coordinated With Medicare Benefits.--
Section 4(l) of the Age Discrimination in Employment Act of 1967 (29
U.S.C. 623(l)) is amended by adding to the end the following:
``(4) It shall not be a violation of subsection (a), (b), (c), or
(e) solely because an employee benefit plan (as defined in section 3 of
the Employment Retirement Income Security Act of 1974 (29 U.S.C.
1002(3)) provides for medical benefits for retired participants that
are altered, reduced, or eliminated when the participant is eligible
for medical benefits under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) or an employee benefit plan maintained by a State
or an agency thereof.''.
(c) Construction.--(1) The amendments made by subsections (a) and
(b) shall apply in determining whether a voluntary early retirement
incentive plan maintained by a local educational agency (as defined in
Section 14101 of the Elementary and Secondary Education Act (20 U.S.C.
8801)) or an employee benefit plan (as defined in Section 3 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(3))
providing medical benefits for retired participants, was in violation
of subsection (a), (b), (c), or (e) of section 4 of the Age
Discrimination in Employment Act of 1967 (29 U.S.C. 623) at any time
subsequent to January 1, 1996.
(2) No inference may be drawn from the amendment made by subsection
(a) as to whether a voluntary early retirement incentive plan
maintained by a local educational agency constitutes, or at any time
before or after the effective date of subsection (a) constituted, a
defined benefit plan (as defined in Section 3(35) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002(35)) for any
purpose, including section 4 of the Age Discrimination in Employment
Act of 1967.
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