[Congressional Record Volume 141, Number 108 (Thursday, June 29, 1995)]
[Extensions of Remarks]
[Page E1364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 INTRODUCTION OF LEGISLATION RELATING TO INDIAN TRIBAL GOVERNMENTS AND 
                            THEIR EMPLOYEES

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                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                         Thursday, June 29, 1995
  Mr. SHAW. Mr. Speaker, I rise today to introduce legislation which 
will help to address some very serious ambiguities currently found in 
the tax code relating to the availability of pension plans for Indian 
tribal governments and their employees.
  Under current law, there are no salary deferred pension plans for 
Indian tribal governments and their employees. As far as we can tell, 
Indian tribal governments are one of only a few employers which do not 
have such plans available to them. Further aggravating matters, several 
tribes have purchased plans provided for under section 403 (b) of the 
Code from insurance companies, only later to find that such plans were 
not intended for their use. Those retirement funds, affecting several 
tribes and thousands of tribal employees, are now in jeopardy.
  One of the chief reasons individuals elect to work for an employer is 
based on a strong employee benefits package. Although many tribes are 
now competitive in the area of salary and health care the laws of the 
Federal Government have prohibited tribes from offering any form of 
salary reduction pension plan--one of the most sought after benefits 
offered to prospective employees. This is a basic matter of equity.
  The proposal would provide that annuity contracts purchased by 
employees of Indian tribal governments qualify under section 403 (b) as 
tax-sheltered annuities. The Joint Committee on Taxation has estimated 
that this proposal would have a negligible revenue effect on Federal 
fiscal year budget receipts.
  I am pleased to introduce this legislation today and I ask for the 
consideration of my colleagues.


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