[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4012 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 4012

            To improve the employability of older Americans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 7, 2010

   Mr. Kohl introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
            To improve the employability of older Americans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Incentives for 
Older Workers Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Prohibition of benefit reduction due to phased retirement.
Sec. 3. Allowance of delayed retirement social security credits until 
                            age 72.
Sec. 4. Reduction in social security benefit offset resulting from 
                            certain earnings.
Sec. 5. National Resource Center on Aging and the Workforce.
Sec. 6. Workforce investment activities for older workers.
Sec. 7. Eligibility of older workers for the work opportunity credit.
Sec. 8. Normal retirement age.

SEC. 2. PROHIBITION OF BENEFIT REDUCTION DUE TO PHASED RETIREMENT.

    (a) Prohibition of Benefit Reduction Due to Phased Retirement.--
            (1) Amendment to the employee retirement income security 
        act of 1974.--Section 204(b)(1) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1054(b)(1)) is amended 
        by adding at the end the following:
                    ``(I)(i) Notwithstanding the preceding 
                subparagraphs, in the case of a participant who--
                            ``(I) begins a period of phased retirement, 
                        and
                            ``(II) was employed on a substantially 
                        full-time basis during the 12-month period 
                        preceding the period of phased retirement,
                a defined benefit plan shall be treated as meeting the 
                requirements of this paragraph with respect to the 
                participant only if the participant's compensation or 
                average compensation taken into account under the plan 
                with respect to the years of service before the period 
                of phased retirement is not, for purposes of 
                determining the accrued benefit for such years of 
                service, reduced due to such phased retirement.
                    ``(ii) For purposes of this subparagraph, a period 
                of phased retirement is a period during which an 
                employee is employed on substantially less than a full-
                time basis or with substantially reduced 
                responsibilities, but only if the period begins after 
                the participant reaches age 50 or has completed 30 
                years of service creditable under the plan.''.
            (2) Amendment to the internal revenue code of 1986.--
        Section 411(b)(1) of the Internal Revenue Code of 1986 
        (relating to accrued benefits) is amended by adding at the end 
        the following:
                    ``(I) Accrued benefit may not decrease on account 
                of phased retirement.--
                            ``(i) In general.--Notwithstanding the 
                        preceding subparagraphs, in the case of a 
                        participant who--
                                    ``(I) begins a period of phased 
                                retirement, and
                                    ``(II) was employed on a 
                                substantially full-time basis during 
                                the 12-month period preceding the 
                                period of phased retirement,
                        a defined benefit plan shall be treated as 
                        meeting the requirements of this paragraph with 
                        respect to the participant only if the 
                        participant's compensation or average 
                        compensation taken into account under the plan 
                        with respect to the years of service before the 
                        period of phased retirement is not, for 
                        purposes of determining the accrued benefit for 
                        such years of service, reduced due to such 
                        phased retirement.
                            ``(ii) Period of phased retirement.--For 
                        purposes of this subparagraph, a period of 
                        phased retirement is a period during which an 
                        employee is employed on substantially less than 
                        a full-time basis or with substantially reduced 
                        responsibilities, but only if the period begins 
                        after the participant reaches age 50 or has 
                        completed 30 years of service creditable under 
                        the plan.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to benefits payable after the date of enactment of this Act.

SEC. 3. ALLOWANCE OF DELAYED RETIREMENT SOCIAL SECURITY CREDITS UNTIL 
              AGE 72.

    (a) In General.--Paragraphs (2) and (3) of section 202(w) of the 
Social Security Act (42 U.S.C. 402(w)) are each amended by striking 
``age 70'' and inserting ``age 72''.
    (b) Effective Dates.--The amendments made by this section shall 
take effect on the date of the enactment of this Act.

SEC. 4. REDUCTION IN SOCIAL SECURITY BENEFIT OFFSET RESULTING FROM 
              CERTAIN EARNINGS.

    (a) In General.--Section 203(f)(3) of the Social Security Act (42 
U.S.C. 403(f)(3)) is amended by striking ``in the case of any 
individual'' and all that follows through ``in the case of any other 
individual''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 5. NATIONAL RESOURCE CENTER ON AGING AND THE WORKFORCE.

    (a) Establishment.--The Secretary of Labor shall award a grant for 
the establishment and operation of a National Resource Center on Aging 
and the Workforce to address issues on age and the workforce and to 
collect, organize, and disseminate information on older workers.
    (b) Activities.--The Center established under subsection (a) 
shall--
            (1) serve as a national information clearinghouse on 
        workforce issues, challenges, and solutions planning for older 
        workers that would serve employers, local communities, and 
        State and local government organizations, as well as other 
        public and private agencies, including providing for the 
        cataloging, organization, and summarizing of existing research, 
        resources, and scholarship relating to older workforce issues;
            (2) identify best or most-promising practices across the 
        United States that have enjoyed success in productively 
        engaging older Americans in the workforce;
            (3) create toolkits for employers, trade associations, 
        labor organizations, and non-profit employers that would 
        feature a series of issue papers outlining specific tasks and 
        activities for engaging older individuals in select industries;
            (4) distribute information to government planners and 
        policymakers, employers, organizations representing and serving 
        older adults, and other appropriate entities through the 
        establishment of an interactive Internet website, the 
        publications of articles in periodicals, pamphlets, brochures, 
        and reports, as well as through national and international 
        conferences and events; and
            (5) provide targeted and ongoing technical assistance to 
        select units of government, private corporations, and nonprofit 
        organizations.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be available in each fiscal year to carry 
out this section.

SEC. 6. WORKFORCE INVESTMENT ACTIVITIES FOR OLDER WORKERS.

    (a) State Boards.--Section 111(b)(1)(C) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2821(b)(1)(C)) is amended--
            (1) in clause (vi), by striking ``and'' at the end;
            (2) by redesignating clause (vii) as clause (viii); and
            (3) by inserting after clause (vi) the following:
                            ``(vii) representatives of older 
                        individuals, who shall be representatives from 
                        the State agency (as defined in section 102 of 
                        the Older Americans Act of 1965 (42 U.S.C. 
                        3002)) in the State or recipients of grants 
                        under title V of such Act (42 U.S.C. 3056 et 
                        seq.) in the State; and''.
    (b) Local Boards.--Section 117(b)(2)(A) of such Act (29 U.S.C. 
2832(b)(2)(A)) is amended--
            (1) in clause (v), by striking ``and'' at the end; and
            (2) by adding at the end the following:
                            ``(vii) representatives of older 
                        individuals, who shall be representatives from 
                        an area agency on aging (as defined in section 
                        102 of the Older Americans Act of 1965 (42 
                        U.S.C. 3002)) in the local area or recipients 
                        of grants under title V of such Act (42 U.S.C. 
                        3056 et seq.) in the local area; and''.
    (c) Reservation of Funds for Older Individuals.--Section 134 of 
such Act (29 U.S.C. 2864) is amended by adding at the end the 
following:
    ``(f) Reservation for Older Individuals From Funds Allocated for 
Adults.--
            ``(1) Definition.--In this subsection, the term `allocated 
        funds' means the funds allocated to a local area under 
        paragraph (2)(A) or (3) of section 133(b).
            ``(2) Reservation.--The local area shall ensure that 5 
        percent of the allocated funds that are used to provide 
        services under subsection (d) or (e) are reserved for services 
        for older individuals.''.

SEC. 7. ELIGIBILITY OF OLDER WORKERS FOR THE WORK OPPORTUNITY CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) is amended--
            (1) by striking ``or'' at the end of subparagraph (H),
            (2) by striking the period at the end of subparagraph (I) 
        and inserting ``, or'', and
            (3) by adding at the end the following new subparagraph:
                    ``(J) a qualified older worker.''.
    (b) Qualified Older Worker.--Section 51(d) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(15) Qualified older worker.--The term `qualified older 
        worker' means any individual who is certified by the designated 
        local agency as being an individual who is age 55 or older and 
        whose income is not more than 125 percent of the poverty line 
        (as defined by the Office of Management and Budget), excluding 
        any income that is unemployment compensation, a benefit 
        received under title XVI of the Social Security Act (42 U.S.C. 
        1381 et seq.), a payment made to or on behalf of veterans or 
        former members of the Armed Forces under the laws administered 
        by the Secretary of Veterans Affairs, or 25 percent of a 
        benefit received under title II of the Social Security Act (42 
        U.S.C. 401 et seq.).''.
    (c) Effective Date.--The amendments made this section shall apply 
to amounts paid or incurred after the date of the enactment of this Act 
to individuals who begin work for the employer after such date.

SEC. 8. NORMAL RETIREMENT AGE.

    (a) Amendment to Internal Revenue Code of 1986.--Section 411 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(f) Special Rule for Determining Normal Retirement Age for 
Certain Existing Defined Benefit Plans.--
            ``(1) In general.--For purposes of subsection (a)(8)(A), an 
        applicable plan shall not be treated as failing to meet any 
        requirement of this subchapter, or as failing to have a uniform 
        normal retirement age for purposes of this subchapter, solely 
        because the plan has adopted the normal retirement age 
        described in paragraph (2).
            ``(2) Applicable plan.--For purposes of this subsection--
                    ``(A) In general.--The term `applicable plan' means 
                a defined benefit plan that, on the date of the 
                introduction of the Incentives for Older Workers Act, 
                has adopted a normal retirement age which is the 
                earlier of--
                            ``(i) an age otherwise permitted under 
                        subsection (a)(8)(A), or
                            ``(ii) the age at which a participant 
                        completes the number of years (not less than 30 
                        years) of benefit accrual service specified by 
                        the plan.
                A plan shall not fail to be treated as an applicable 
                plan solely because, as of such date, the normal 
                retirement age described in the preceding sentence only 
                applied to certain participants or to certain employers 
                participating in the plan.
                    ``(B) Expanded application.--If, after the date 
                described in subparagraph (A), an applicable plan 
                expands the application of the normal retirement age 
                described in subparagraph (A) to additional 
                participants or participating employers, such plan 
                shall also be treated as an applicable plan with 
                respect to such participants or participating 
                employers.''.
    (b) Amendments to Employee Retirement Income Security Act of 
1974.--Section 204 of the Employee Retirement Income Security Act of 
1974 is amended by redesignating subsection (k) as subsection (l) and 
by inserting after subsection (j) the following new subsection:
    ``(k) Special Rule for Determining Normal Retirement Age for 
Certain Existing Defined Benefit Plans.--
            ``(1) In general.--For purposes of section 3(24), an 
        applicable plan shall not be treated as failing to meet any 
        requirement of this title, or as failing to have a uniform 
        normal retirement age for purposes of this title, solely 
        because the plan has adopted the normal retirement age 
        described in paragraph (2).
            ``(2) Applicable plan.--For purposes of this subsection--
                    ``(A) In general.--The term `applicable plan' means 
                a defined benefit plan that, on the date of the 
                introduction of the Incentives for Older Workers Act, 
                has adopted a normal retirement age which is the 
                earlier of--
                            ``(i) an age otherwise permitted under 
                        section 2(24), or
                            ``(ii) the age at which a participant 
                        completes the number of years (not less than 30 
                        years) of benefit accrual service specified by 
                        the plan.
                A plan shall not fail to be treated as an applicable 
                plan solely because, as of such date, the normal 
                retirement age described in the preceding sentence only 
                applied to certain participants or to certain employers 
                participating in the plan.
                    ``(B) Expanded application.--If, after the date 
                described in subparagraph (A), an applicable plan 
                expands the application of the normal retirement age 
                described in subparagraph (A) to additional 
                participants or participating employers, such plan 
                shall also be treated as an applicable plan with 
                respect to such participants or participating 
                employers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning before, on, or after the date of the enactment 
of this Act.
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