110 HR 6961 IH: Healthcare Enhancement for Local
U.S. House of Representatives
2008-09-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Healthcare Enhancement for Local
Public Servants Act of 2008
.
2.Distributions
from governmental plans for health and long-term care insurance allowed for
other public employees
(a)
(1)Distributions
allowed for other public employeesParagraph (1) of section
402(l) of the Internal Revenue Code of 1986 (relating to distributions from
governmental plans for health and long-term care insurance) is amended by
striking retired public safety officer who makes the election described
in paragraph (6)
and inserting retired public
employee
.
(2)
(A)Paragraph (4) of
section 402(l) of such Code is amended—
(i)by
striking (B) Eligible retired public safety
officer.—The term eligible retired public safety
officer
means
and inserting the following:
(B)Eligible retired
public employee
(i)The term
eligible retired public employee
means
,
(ii)by
inserting , public school personnel, or other public employee
after public safety officer
in subparagraph (B), and
(iii)by redesignating
subparagraph (C) as clause (ii), by moving such clause (as so redesignated) 2
ems to the right, and by inserting after such clause (as so redesignated) the
following new clauses:
(iii)The term
public school personnel
shall have the same meaning given such
term by section 4151(10) of the elementary and secondary education Act of 1965
(20 U.S.C. 7161(10)) whether employed by an institution of higher education (as
defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001) or
a local educational agency (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801(26)).
(iv)The term public employee
means any
employee of a State, political subdivision of a State, or agency or
instrumentality of a State or political subdivision of a
State.
.
(3)
(A)Subsection (l) of
section 402 of such Code (as amended by this section) is amended by striking
retired public safety officer
in each place it appears and
inserting retired public employee
.
(B)Subparagraph (D)
of section 402(l)(4) of such Code is redesignated as subparagraph (C).
(b)The amendments made by this section shall apply to
distributions in taxable years beginning after December 31, 2008.
3.Distribution
allowed as deduction rather than excluded from gross income
(a)
(1)Paragraph (1) of section 402(l) of the Internal Revenue
Code of 1986 is amended by striking gross income of such employee for
such taxable year does not include
and all that follows through the
period at the end and inserting the following: there shall be allowed as
a deduction from gross income for the taxable year an amount equal to the
aggregate amount of distributions from an eligible retirement plan of the
individual in the taxable year to the extent that such amount does not exceed
the amount paid by such employee for qualified health premiums for such taxable
year.
(2)Deduction with
respect to surviving spouseSubsection (l) of section 402 of such
Code is amended by striking paragraph (6) and inserting the following new
paragraph:
(6)Special rule for
surviving spouseIn the case
of a deceased individual with respect to whom a deduction was allowed under
paragraph (1) for the taxable year closed by reason of the individual’s death,
the surviving spouse of such individual shall be treated as the employee with
respect to the plan for purposes of paragraph (1) for all subsequent taxable
years.
.
(b)Deduction allowed
whether or not taxpayer itemizesSubsection (a) of section 62 of
such Code is amended by inserting after paragraph (21) the following new
paragraph:
(22)Distributions
from governmental retirement plans for health and long-term care insurance for
public employeesThe
deduction allowed by section 402(l).
.
(c)
(1)Paragraph (1) of section 402(l) of such
Code is amended by striking of the employee, his spouse, or dependents
(as defined in section 152)
.
(2)Paragraph (2) of
section 402(l) of such Code is amended by striking The amount which may
be excluded from gross income for the taxable year by reason of paragraph
(1)
and inserting The amount allowable as a deduction under
paragraph (1) for the taxable year
.
(3)Paragraph (3) of
section 402(l) of such Code is amended to read as follows:
(3)Distributions
must be included in gross incomeAn amount shall be treated as a
distribution for purposes of paragraph (1) only to the extent that such amount
is included in gross income for the taxable
year.
.
(4)Paragraph (7) and
(8) of section 402(l) of such Code are each amended by striking The
amounts excluded from gross income
and inserting Any amount
allowable as a deduction
.
(5)Subsection (a) of
section 403 of such Code is amended by striking paragraph (2).
(6)Subsection (a) of
section 457 of such Code is amended by striking paragraph (3).
(d)The amendments made by this section shall apply to
distributions in taxable years beginning after December 31, 2008.
4.Further
modifications relating to 402(l)
(a)
(1)Subsection (l) of
section 402 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
(9)Cost-of-living
adjustmentIn the case of
taxable years beginning after December 31, 2009, the Secretary shall adjust the
$3,000 amount under paragraph (2) at the same time and in the same manner as
under section 415(d), except that the base period shall be the calendar quarter
beginning July 1, 2008, and any increase under this paragraph which is not a
multiple of $100 shall be rounded to the next lowest multiple of
$100.
.
(2)Subparagraph (A) of section 402(l)(4) of
such Code (defining eligible retirement plan) is amended to read as
follows:
(A)For purposes
of paragraph (1), the term eligible retirement plan
means a plan
described in—
(i)subsection (c)(8)(B)(iii) (and is a governmental plan within the meaning of
section 414(d)),
(ii)subsection
(c)(8)(B)(iv) (and is maintained by an employer which is a State, a political
subdivision of a State, or an agency or instrumentality of a State or political
subdivision of a State),
(iii)subsection
(c)(8)(B)(v), or
(iv)subsection
(c)(8)(B)(vi) (and is maintained by an employer which is a State, a political
subdivision of a State, or an agency or instrumentality of a State or political
subdivision of a
State).
.
(3)Subparagraph (C) of
section 402(l)(4) of such Code (as redesignated by this Act) is amended—
(A)by inserting
(as defined in section 152, determined without regard to subsections
(b)(1), (b)(2), and (d)(1)(B) thereof)
after dependents
,
and
(B)by striking
insurance
.
(4)(A)Subparagraph (B) of
section 402(l)(4) of such Code is amended by striking normal retirement
age
and inserting normal retirement date
.
(B)Paragraph (4) of section 402(l) of
such Code is amended by adding at the end the following new
subparagraph:
(D)The term
normal retirement date
means the earliest date on which the
individual may retire and receive a retirement benefit from the governmental
plan which is not reduced by reason of the individual’s age or years of
service.
.
(5)Paragraph (5) of
section 402(l) of such Code is amended to read as follows:
(5)Related plans
treated as 1 planFor
purposes of this subsection, all eligible retirement plans of an employer shall
be treated as a single
plan.
.
(b)The amendments made by this section shall apply to
distributions in taxable years beginning after December 31, 2008.