[Congressional Record (Bound Edition), Volume 157 (2011), Part 10]
[Senate]
[Pages 14611-14613]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CORNYN (for himself and Mr. Harkin):
  S. 1644. A bill to amend the Internal Revenue Code of 1986 to expand 
workplace health incentives by equalizing the tax consequences of 
employee athletic facility use; to the Committee on Finance.
  Mr. CORNYN. Mr. President, I rise to introduce the Workforce Health 
Improvement Program Act of 2011, otherwise known as the WHIP Act. I am 
very pleased to be joined again by my good friend and colleague, 
Senator Tom Harkin, who shares my commitment to helping keep America 
fit.
  Public health experts unanimously agree that people who maintain 
active and healthy lifestyles dramatically reduce their risk of 
contracting chronic diseases. And as the government works to reign in 
the high cost of health care, it is worth talking about what we all can 
do to help ourselves. As you know, prevention is key, and exercise is a 
primary component in the prevention of many adverse health conditions 
that can arise over one's lifetime. A physically fit population helps 
to decrease health-care costs, reduce governmental spending, reduce 
illnesses, and improve worker productivity.
  According to the Centers for Disease Control and Prevention, CDC, the 
economic cost alone to businesses in the form of health insurance and 
absenteeism is more that $15 billion. Additionally, the CDC estimates 
that more than one-third of all U.S. adults fail to meet minimum 
recommendations for aerobic physical activity. With physical inactivity 
being a key contributing factor to overweight and obesity, and 
adversely affecting workforce productivity, we quite simply need to do 
more to help employers encourage exercise.
  Given the tremendous benefits exercise provides, I believe Congress 
has a duty to create as many incentives as possible to get Americans 
off the couch, up, and moving.
  With this in mind, I am reintroducing the WHIP Act.
  Current law already permits businesses to deduct the cost of on-site 
workout facilities, which are provided for the benefit of employees on 
a pre-tax basis. But if a business wants or needs to outsource these 
health benefits, they and/or their employees are required to bear the 
full cost. In other words, employees who receive off-site fitness 
center subsidies are required to pay income tax on the benefits, and 
their employers bear the associated administrative costs of complying 
with the IRS rules.
  The WHIP Act would correct this inequity in the tax code to the 
benefit of many smaller businesses and their employees. Specifically, 
it would provide an employer's right to deduct up to $900 of the cost 
of providing health club benefits off-site for their employees. In 
addition, the employer's contribution to the cost of the health club 
fees would not be taxable income for employees--creating an incentive 
for more employers to contribute to the health and welfare of their 
employees.
  The WHIP Act is an important step in reversing the largely 
preventable

[[Page 14612]]

 health crisis that our country is facing, through the promotion of 
physical activity and disease prevention. It is a critical component of 
America's health care policy: prevention. It will improve our nation's 
quality of life by promoting physical activity and preventing disease.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1644

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Workforce Health Improvement 
     Program Act of 2011''.

     SEC. 2. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

       (a) Treatment as Fringe Benefit.--Subparagraph (A) of 
     section 132(j)(4) of the Internal Revenue Code of 1986 
     (relating to on-premises gyms and other athletic facilities) 
     is amended to read as follows:
       ``(A) In general.--Gross income shall not include--
       ``(i) the value of any on-premises athletic facility 
     provided by an employer to its employees, and
       ``(ii) so much of the fees, dues, or membership expenses 
     paid by an employer to an athletic or fitness facility 
     described in subparagraph (C) on behalf of its employees as 
     does not exceed $900 per employee per year.''.
       (b) Athletic Facilities Described.--Paragraph (4) of 
     section 132(j) of the Internal Revenue Code of 1986 (relating 
     to special rules) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Certain athletic or fitness facilities described.--
     For purposes of subparagraph (A)(ii), an athletic or fitness 
     facility described in this subparagraph is a facility--
       ``(i) which provides instruction in a program of physical 
     exercise, offers facilities for the preservation, 
     maintenance, encouragement, or development of physical 
     fitness, or is the site of such a program of a State or local 
     government,
       ``(ii) which is not a private club owned and operated by 
     its members,
       ``(iii) which does not offer golf, hunting, sailing, or 
     riding facilities,
       ``(iv) whose health or fitness facility is not incidental 
     to its overall function and purpose, and
       ``(v) which is fully compliant with the State of 
     jurisdiction and Federal anti-discrimination laws.''.
       (c) Exclusion Applies to Highly Compensated Employees Only 
     if No Discrimination.--Section 132(j)(1) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``Paragraphs (1) and (2) of subsection 
     (a)'' and inserting ``Subsections (a)(1), (a)(2), and 
     (j)(4)'', and
       (2) by striking the heading thereof through ``(2) apply'' 
     and inserting ``Certain exclusions apply''.
       (d) Employer Deduction for Dues to Certain Athletic 
     Facilities.--
       (1) In general.--Paragraph (3) of section 274(a) of the 
     Internal Revenue Code of 1986 (relating to denial of 
     deduction for club dues) is amended by adding at the end the 
     following new sentence: ``The preceding sentence shall not 
     apply to so much of the fees, dues, or membership expenses 
     paid to athletic or fitness facilities (within the meaning of 
     section 132(j)(4)(C)) as does not exceed $900 per employee 
     per year.''.
       (2) Conforming amendment.--The last sentence of section 
     274(e)(4) of such Code is amended by inserting ``the first 
     sentence of'' before ``subsection (a)(3)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. BAUCUS:
  S. 1649. A bill to amend the provisions of title 5, United States 
Code, relating to the methodology for calculating the amount of any 
Postal surplus or supplemental liability under the Civil Service 
Retirement System, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. BAUCUS. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1649

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``United States Postal Service 
     Pension Obligation Recalculation and Restoration Act of 
     2011''.

     SEC. 2. MODIFIED METHODOLOGY.

       (a) In General.--Section 8348(h) of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(4)(A) To the extent that a determination under paragraph 
     (1), relating to benefits attributable to civilian employment 
     with the United States Postal Service, is based on any 
     provision of law described in subparagraph (C), such 
     determination shall be made in accordance with such provision 
     and any otherwise applicable provisions of law, subject to 
     the following:
       ``(i) The `average pay' used in the case of any individual 
     shall be a single amount, determined in accordance with 
     section 8331(4), taking into account the rates of basic pay 
     in effect for such individual during the periods of 
     creditable service performed by such individual. Nothing in 
     this subsection shall be considered to permit or require--
       ``(I) one determination of average pay with respect to 
     service performed with the United States Postal Service; and
       ``(II) a separate determination of average pay with respect 
     to service performed with its predecessor entity in function.
       ``(ii) In determining the portion of an annuity 
     attributable to civilian employment with the United States 
     Postal Service, with respect to any period of employment with 
     the United States Postal Service that follows any other 
     period of employment creditable under section 8332 (without 
     regard to whether such employment was with an entity referred 
     to in clause (i)(II)), the total service of an employee for 
     purposes of any provision of law described in subparagraph 
     (C) shall be the sum of--
       ``(I) any period of employment with the United States 
     Postal Service; and
       ``(II) any period of employment creditable under section 
     8332 that precedes the period described in subclause (I).
       ``(B)(i) Not later than 6 months after the date of 
     enactment of this paragraph, the Office shall determine (or, 
     if applicable, redetermine) the amount of the Postal surplus 
     or supplemental liability as of the close of the fiscal year 
     most recently ending before such date of enactment, in 
     conformance with the methodology required under subparagraph 
     (A).
       ``(ii)(I) If the result of the determination or 
     redetermination under clause (i) is a surplus, the Office 
     shall transfer the amount of such surplus to the Postal 
     Service Retiree Health Benefits Fund not later than 15 days 
     after the date of such determination or redetermination.
       ``(II) If a determination or redetermination under clause 
     (i) for a fiscal year is made before the Office makes a 
     redetermination under paragraph (2)(B) with respect to the 
     fiscal year, the Office may not make a determination under 
     paragraph (2)(B) with respect to the fiscal year.
       ``(C) The provisions of law described in this subparagraph 
     are--
       ``(i) the first sentence of section 8339(a); and
       ``(ii) section 8339(d)(1).
       ``(5) For purposes of this subsection--
       ``(A) the term `Postal Service Retiree Health Benefits 
     Fund' means the fund established under section 8909a; and
       ``(B) the term `Postal Service Fund' means the fund 
     established under section 2003 of title 39.''.
       (b) Coordination Provisions.--
       (1) Amendment.--Section 8909a of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(e) Notwithstanding any other provision of law, the 
     amount payable by the Postal Service under subsection (d) in 
     any fiscal year ending on or before September 30, 2021, shall 
     be determined without regard to the requirements under 
     section 8348(h)(4).''.
       (2) Rule of construction.--Nothing in this Act, or an 
     amendment made by this Act, shall be construed to affect the 
     amount of any benefits otherwise payable from the Civil 
     Service Retirement and Disability Fund to any individual.
       (c) Technical Amendment.--The heading for section 8909a of 
     title 5, United States Code, is amended by striking 
     ``Benefit'' and inserting ``Benefits''.

     SEC. 3. ADDITIONAL PROVISIONS.

       (a) In General.--Section 8348(h)(2) of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(F) Notwithstanding any other provision of this 
     subsection, for purposes of determining the Postal surplus or 
     supplemental liability for each of fiscal years 2016, 2017, 
     2018, 2019, and 2020--
       ``(i) paragraph (4)(A) shall not apply to a determination 
     under paragraph (1); and
       ``(ii) the determination under paragraph (1) shall be made 
     by applying the methodology that was used to carry out this 
     paragraph with respect to the fiscal year preceding the 
     fiscal year referred to in paragraph (4)(B)(i).''.
       (b) Relating to a Postal Surplus.--Section 8348(h)(2)(C) of 
     title 5, United States Code, is amended--
       (1) by inserting ``2021,'' after ``2015,''; and
       (2) by striking ``if the result is'' and all that follows 
     through ``terminated.'' and inserting the following: ``if the 
     result is a surplus--
       ``(i) that amount shall be transferred--
       ``(I) to the Postal Service Retiree Health Benefits Fund, 
     if the surplus is for fiscal year 2020 or a preceding fiscal 
     year; and
       ``(II) to the Postal Service Fund, if the surplus is for 
     fiscal year 2021 or a subsequent fiscal year; and

[[Page 14613]]

       ``(ii) any prior amortization schedule for payments shall 
     be terminated.''.

     SEC. 4. TREATMENT OF CERTAIN SURPLUS RETIREMENT 
                   CONTRIBUTIONS.

       Section 8423(b) of title 5, United States Code, is 
     amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5) If, for fiscal year 2010, the amount computed under 
     paragraph (1)(B) is less than zero (in this section referred 
     to as `surplus postal contributions'), the amount of such 
     surplus postal contributions shall be transferred--
       ``(A) to the Postal Service Retiree Health Benefits Fund to 
     pay any liability to the Postal Service Retiree Health 
     Benefits Fund for fiscal year 2011;
       ``(B) if all liability to the Postal Service Retiree Health 
     Benefits Fund for fiscal year 2011 has been paid, to the 
     Employees' Compensation Fund established under section 8147; 
     and
       ``(C) if all liability of the United States Postal Service 
     to the Employees' Compensation Fund has been paid, to the 
     United States Postal Service for the repayment of any 
     obligation issued under section 2005 of title 39.''.

     SEC. 5. RURAL POST OFFICES.

       Section 404(d) of title 39, United States Code, is amended 
     by adding at the end the following:
       ``(7) Notwithstanding any other provision of this 
     subsection, in making any determination under subsection 
     (a)(3) as to the necessity for the closing or consolidation 
     of any post office, the Postal Service may not close any post 
     office which is located more than 10 miles from any other 
     post office.''.

     SEC. 6. EFFECTIVE DATE.

       (a) In General.--This Act and the amendments made by this 
     Act shall take effect on the date of enactment of this Act.
       (b) Intent of Congress.--It is the intent of Congress that 
     this Act apply with respect to the allocation of past, 
     present, and future benefit liabilities between the United 
     States Postal Service and the Treasury of the United States.
                                 ______
                                 
      By Mr. SESSIONS (for himself and Ms. Snowe):
  S. 1651. A bill to provide for greater transparency and honesty in 
the Federal budget process; to the Committee on the Budget.

                          ____________________