[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2831 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                 S. 2831

To amend the Internal Revenue Code of 1986 and the Employee Retirement 
Income Security Act of 1974 to clarify that federally recognized Indian 
   tribal governments are to be regulated under the same government 
 employer rules and procedures that apply to Federal, State, and other 
    local government employers with regard to the establishment and 
                 maintenance of employee benefit plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES



  Mr. Smith (for himself, Mr. Bingaman, Mr. Conrad, Mr. Daschle, Mr. 
 Hatch, and Mr. Thomas) 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 and the Employee Retirement 
Income Security Act of 1974 to clarify that federally recognized Indian 
   tribal governments are to be regulated under the same government 
 employer rules and procedures that apply to Federal, State, and other 
    local government employers with regard to the establishment and 
                 maintenance of employee benefit plans.

    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 ``Governmental Pension Plan 
Equalization Act of 2004''.

SEC. 2. CLARIFICATION OF ``GOVERNMENTAL PLAN'' DEFINITIONS.

    (a) Amendment to Internal Revenue Code of 1986.--Section 414(d) of 
the Internal Revenue Code of 1986 (definition of governmental plan) is 
amended by adding at the end thereof the following new sentence: ``The 
term `governmental plan' also includes a plan established or maintained 
for its employees by an Indian tribal government (as defined in section 
7701(a)(40)), a subdivision of an Indian tribal government (determined 
in accordance with section 7871(d)), an agency or instrumentality of an 
Indian tribal government or a subdivision thereof, or an entity 
established under tribal, Federal, or State law which is wholly owned 
or controlled by any of the foregoing.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 3(32) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(32)) is amended by adding at the end the following new 
sentence: ``The term `governmental plan' also includes a plan 
established or maintained for its employees by an Indian tribal 
government (as defined in section 7701(a)(40) of the Internal Revenue 
Code of 1986), a subdivision of an Indian tribal government (determined 
in accordance with section 7871(d) of such Code), an agency or 
instrumentality of an Indian tribal government or subdivision thereof, 
or an entity established under tribal, Federal, or State law which is 
wholly owned or controlled by any of the foregoing.''.

SEC. 3. EXTENSION TO ALL GOVERNMENTAL PLANS OF CURRENT MORATORIUM ON 
              APPLICATION OF CERTAIN NONDISCRIMINATION RULES APPLICABLE 
              TO STATE AND LOCAL PLANS.

    (a) In General.--
            (1) Subparagraph (G) of section 401(a)(5) and subparagraph 
        (H) of section 401(a)(26) of the Internal Revenue Code of 1986 
        are each amended by striking ``section 414(d))'' and all that 
        follows and inserting ``section 414(d)).''.
            (2) Subparagraph (G) of section 401(k)(3) of such Code and 
        paragraph (2) of section 1505(d) of the Taxpayer Relief Act of 
        1997 are each amended by striking ``maintained by a State or 
        local government or political subdivision thereof (or agency or 
        instrumentality thereof)''.
    (b) Conforming Amendments.--
            (1) The heading for section 401(a)(5)(G) of such Code is 
        amended to read as follows:
                    ``(G) Governmental plans.--''.
            (2) The heading for section 401(a)(26)(H) of such Code is 
        amended to read as follows:
                    ``(H) Exception for governmental plans.--''.
            (3) Section 401(k)(3)(G) of such Code is amended by 
        inserting ``Governmental plan.--'' after ``(G)''.

SEC. 4. CLARIFICATION THAT TRIBAL GOVERNMENTS ARE SUBJECT TO THE SAME 
              DEFINED BENEFIT PLAN RULES AND REGULATIONS APPLIED TO 
              STATE AND OTHER LOCAL GOVERNMENTS, THEIR POLICE AND 
              FIREFIGHTERS.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) Police and firefighters.--Subparagraph (H) section 
        415(b)(2) of the Internal Revenue Code of 1986 (defining 
        participant) is amended--
                    (A) in clause (i) by inserting ``, Indian tribal 
                government (as defined in section 7701(a)(40)),'' after 
                ``State'', and
                    (B) in clause (ii)(I) by inserting ``, Indian 
                tribal government,'' after ``State'' both places it 
                appears.
            (2) State and local government plans.--
                    (A) In general.--Subparagraph (A) of section 
                415(b)(10) of such Code (relating to limitation to 
                equal accrued benefit) is amended by inserting ``, 
                Indian tribal government (as defined in section 
                7701(a)(40)),'' after ``State''.
                    (B) Conforming amendment.--The heading for section 
                415(b)(10) of such Code is amended to read as follows:
            ``(10) Special rule for state, indian tribal, and local 
        government plans.--''.
            (3) Government pick up contributions.--Paragraph (2) of 
        section 414(h) of such Code (relating to designation by units 
        of government) is amended by inserting ``, Indian tribal 
        government (as defined in section 7701(a)(40)),'' after 
        ``State''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--Section 4021(b) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1321(b)) is amended--
            (1) in paragraph (12), by striking ``or'' at the end;
            (2) in paragraph (13), by striking ``plan.'' and inserting 
        ``plan; or''; and
            (3) by adding at the end the following new paragraph:
            ``(14) established and maintained for its employees by an 
        Indian tribal government (as defined in section 7701(a)(40) of 
        the Internal Revenue Code of 1986), a subdivision of an Indian 
        tribal government (determined in accordance with section 
        7871(d) of such Code), an agency or instrumentality of an 
        Indian tribal government or subdivision thereof, or an entity 
        established under tribal, Federal, or State law which is wholly 
        owned or controlled by any of the foregoing.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to years beginning 
before, on, or after the date of the enactment of this Act.
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