1.This Act may be cited as the
Older Worker Opportunity Act of
2010
.
2.Tax credit for employing older workers in
flexible work programs
(a)Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end the following new section:
45R.
(a)For purposes of section 38, in the case of
an eligible employer, the flexible work credit determined under this section
for the taxable year shall be equal to 25 percent of the qualified wages for
such taxable year.
(b)For purposes of this section, the term
eligible employer means an employer which—
(1)maintains a qualified trust (within the
meaning of section 401(a)), and
(2)provides health insurance coverage (as
defined in section 9832(b)(1)(A)) to employees and pays no less than 60 percent
of the cost of such health insurance coverage with respect to each full-time
employee receiving such coverage.
(c)For purposes of this section—
(1)The term qualified wages means
the wages paid or incurred by an eligible employer during the taxable year to
eligible individuals.
(2)
(A)The term eligible individual
means an individual who, at the time such wages are paid or incurred—
(i)has attained the age of 62, and
(ii)is participating in a formal flexible work
program.
(B)Such term shall not include any individual
who begins participation in a formal flexible work program during any period in
which more than 20 percent of the employees of the eligible employer are
already participating in a formal flexible work program.
(3)
(A)The term wages has the meaning
given such term by subsection (b) of section 3306 (determined without regard to
any dollar limitation contained in such section).
(B)Rules similar to the rules of paragraph (2)
and (3) of section 51(c) shall apply for purposes of this section.
(C)The term wages shall not
include any amount paid or incurred to an individual after December 31,
2012.
(4)Only first $6,000 of wages per year taken
into accountThe amount of
the qualified wages which may be taken into account with respect to any
individual shall not exceed $6,000 per year.
(d)Formal flexible work programFor purposes of this section—
(1)The term formal flexible work
program means a program of an eligible employer—
(A)which consists of core time and flex
time,
(B)under which core time does not
exceed—
(i)20 hours per week,
(ii)3 days per week, or
(iii)1,000 hours per year, and
(C)which meets the requirements of subsection
(e).
(2)The term core time means the
specific time—
(A)during which an employee is required to
perform services related to employment, and
(B)which is determined by the employer.
(3)The term flex time means the
time other than core time—
(A)during which an employee is required to
perform services related to employment, and
(B)which is determined at the election of the
employee.
(e)A program shall not be considered a formal
flexible work program under this section unless such program meets the
following requirements:
(1)The program shall allow for participation
for a period of at least 1 year.
(2)No change in health care
benefitsWith respect to a
participant whose work schedule is no less than 20 percent of the work schedule
of a similarly situated full-time employee—
(A)such participant shall be entitled to the
same health insurance coverage to which a similarly situated full-time employee
would be entitled,
(B)the employer shall contribute the same
percentage of the cost of health insurance coverage for such participant as the
employer would contribute for a similarly situated full-time employee,
and
(C)such participant shall be entitled to
participate in a retiree health benefits plan of the employer in the same
manner as a similarly situated full-time employee, except that service credited
under the plan for any plan year shall be equal to the ratio of the
participant’s work schedule during such year to the work schedule of a
similarly situated full-time employee during such year.
(3)No reduction in pension benefits
(A)
(i)A participant shall be entitled to
participate in a defined benefit plan (within the meaning of section 414(j)) of
the employer in the same manner as a similarly situated full-time
employee.
(ii)Service credited to a participant under the
plan for any plan year shall be equal to the ratio of the participant’s work
schedule during such year to the work schedule of a similarly situated
full-time employee during such year.
(iii)If the plan uses final average earnings to
determine benefits, final average earnings of the participant shall be no less
than such earnings were before the participant entered the program.
(B)Defined contribution plansA participant shall be entitled to
participate in a defined contribution plan (within the meaning of section
414(i)) of the employer in the same manner as a similarly situated full-time
employee, and the employer shall match the participant’s contributions at the
same rate that the employer would match the contributions of a similarly
situated full-time employee.
(C)No forfeiture of pension
benefitsThe pension benefits
of a participant shall not be forfeited under the rules of section 411(a)(3)(B)
or section 203(a)(3)(B) of the Employee Retirement Income Security Act of 1974
with respect to a participant who has attained normal retirement age as of the
end of the plan year.
(4)Eligibility to participate in the program
shall not discriminate in favor of highly compensated employees (within the
meaning of section 414(q)).
(f)Certain individuals
ineligibleFor purposes of
this section, rules similar to the rules of section 51(i)(1) and section 52
shall apply.
(g)The Secretary may prescribe such
regulations as are necessary to carry out the purposes of this section,
including simplified rules to satisfy the requirements of subsection (e)(3)(C)
taking into account the requirements of section 411 and section 203 of the
Employee Retirement Income Security Act of
1974.
.
(b)Credit made part of general business
creditSubsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by striking
plus
at the end of paragraph (34), by striking the period at the
end of paragraph (35) and inserting , plus
, and by adding at the
end the following new paragraph:
(36)the flexible work credit determined under
section
45R(a).
.
(c)Subsection (a) of section 280C of the
Internal Revenue Code of 1986 is amended by inserting 45R(a),
after 45P(a),
.
(d)The table of sections for subpart D of part
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended
by adding at the end the following new item:
Sec. 45R. Flexible work
credit.
.
(e)The amendments made by
this section shall apply to wages paid after December 31, 2009.
3.Federal task
force on older workers
(a)Not
later than 90 days after the date of enactment of this Act, the Secretary of
Labor shall establish a Federal Task Force on Older Workers (referred to in
this Act as the Task Force
).
(b)The
Task Force established pursuant to subsection (a) shall be composed of
representatives from all relevant Federal agencies that have regulatory
jurisdiction over, or a clear policy interest in, issues relating to older
workers, including the Internal Revenue Service, the Social Security
Administration, the Equal Employment Opportunity Commission, and the
Administration on Aging of the Department of Health and Human Services.
(c)
(1)Not later than 1 year after the date of establishment of the
Task Force, the Task Force shall—
(A)identify statutory
and regulatory provisions in current law that tend to limit opportunities for
older workers, and develop legislative and regulatory proposals to address such
limitations;
(B)identify best
practices in the private sector for hiring and retaining older workers, and
serve as a clearinghouse of such information; and
(C)assess the
effectiveness and cost of programs that Federal agencies have implemented to
hire and retain older workers and recommend cost-effective programs for all
Federal agencies to hire and retain older workers.
(2)Not later than 3 years after the date of establishment of
the Task Force, the Task Force shall—
(A)assess the
effectiveness of the provisions of this Act; and
(B)organize a
Conference on the Aging Workforce, which shall include the participation of
senior, business, labor, and other interested organizations.
(3)The
Task Force shall submit a report to Congress on the activities of the Task
Force pursuant to paragraph (1). Such report shall be made available to the
public.
(d)In
carrying out activities pursuant to this section, the Task Force shall consult
with senior, business, labor, and other interested organizations.
(e)Applicability of
FACA; Termination of Task Force
(1)The
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Task
Force established pursuant to this Act.
(2)The
Task Force shall terminate 30 days after the date the Task Force completes all
of its duties under this Act.