I 111th CONGRESS 1st Session H. R. 2863 IN THE HOUSE OF REPRESENTATIVES June 12, 2009 Ms. Woolsey (for herself and Mr. Bishop of New York) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend title I of the Employee Retirement Income Security Act of 1974 to provide for treatment of certain deferred executive compensation arrangements which is comparable to certain funding-based limits on benefits and benefit accruals imposed on defined benefit pension plans under the Pension Protection Act of 2006.

1.

Short title

This Act may be cited as the Worker-Executive Parity Act of 2009.

2.

Treatment for covered deferred executive compensation arrangements which is comparable to certain funding-based limits on benefits and benefit accruals imposed on defined benefit pension plans

(a)

In general

Section 206(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)) is amended— (1)by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively; and (2)by inserting after paragraph (8) the following new paragraph: (9)

Comparable treatment for covered deferred executive compensation arrangements

(A)

In general

In any case in which a limitation applies under paragraph (2), (3), or (4) for any plan year in the case of a defined benefit plan which is a single-employer plan— (i)no amount of deferred compensation may accrue to a disqualified individual during such plan year under the terms of any covered deferred executive compensation arrangement maintained by the plan sponsor (irrespective of whether the accrual in deferred compensation is expressed in the form of a promise, a guarantee, or any other representation), and (ii)in the case of such an arrangement established during or after the 1-year period preceding such plan year (or any amendment to such an arrangement if such amendment is adopted during or after such 1-year period), no distribution of accrued deferred compensation may be made under such arrangement (or such amendment) to a disqualified individual during such plan year. (B)

Covered deferred executive compensation arrangement defined

(i)

In general

For purposes of this paragraph, the term covered deferred executive compensation arrangement means any arrangement providing for the deferral of compensation of a disqualified individual, whether or not— (I)compensation of the disqualified individual which is deferred under such arrangement is subject to substantial risk of forfeiture, (II)the disqualified individual’s rights to the compensation deferred under the arrangement are no greater than the rights of a general creditor of the plan sponsor, (III)all amounts set aside (directly or indirectly) for purposes of paying the deferred compensation (including income), and all income attributable to such amounts, remain (until made available to the disqualified individual or other beneficiary) solely the property of the plan sponsor (without being restricted to the provision of benefits under the arrangement), (IV)the amounts referred to in subclause (III) are available to satisfy the claims of the plan sponsor’s general creditors at all times (not merely after bankruptcy or insolvency), and (V)some or all of the compensation of the disqualified individual which is deferred under such arrangement is guaranteed by an insurance company, insurance service, or other similar organization. (ii)

Exception for qualified arrangements

Such term shall not include a arrangement that is— (I)described in section 219(g)(5)(A) of the Internal Revenue Code of 1986, or (II)an eligible deferred compensation plan (as defined in section 457(b) of such Code) of an eligible employer described in section 457(e)(1)(A) of such Code. (C)

Disqualified individual defined

For purposes of this paragraph, the term disqualified individual means a director or executive officer of the plan sponsor. . (b)

Effective date

The amendments made by this section shall apply with respect to plan years beginning on or after the date of the enactment of this Act.