II 110th CONGRESS 1st Session S. 792 IN THE SENATE OF THE UNITED STATES March 7, 2007 Mr. Smith (for himself and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to modify the definition of governmental plan with respect to Indian tribal governments.

1.

Short title

This Act may be cited as the Tribal Government Equality Act of 2007.

2.

Treatment of certain pension plans of Indian tribal governments

(a)

Amendment to Internal Revenue Code of 1986

The last sentence of section 414(d) of the Internal Revenue Code of 1986 (definition of governmental plan) is amended to read as follows: The term governmental plan 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 instrumentality (or subdivision) of an Indian tribal government, or an entity established under Federal, State, or tribal law which is wholly owned or controlled by any of the foregoing.. (b)

Amendments to Employee Retirement Income Security Act of 1974

(1)

In general

The last sentence of section 3(32) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(32)) is amended to read as follows: The term governmental plan 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 instrumentality (or subdivision) of an Indian tribal government, or an entity established under Federal, State, or tribal law that is wholly owned or controlled by any of the foregoing.. (2)

Conforming amendments

(A)Paragraph (14) of section 4021(b) of such Act (29 U.S.C. 1321(b)(14)) is amended to read as follows: (14)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 instrumentality (or subdivision) of an Indian tribal government, or an entity established under Federal, State, or tribal law that is wholly owned or controlled by any of the foregoing. . (B)Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2)) is amended by striking or which is described in the last sentence of section 3(32). (c)

Effective date

The amendments made by this section shall take effect as if included in section 906 of the Pension Protection Act of 2006.