To amend the Internal Revenue Code of 1986 to grant relief to participants in multiemployer plans from certain section 415 limits on defined benefit pensions.

Amends the Internal Revenue Code with respect to limitations on benefits and contributions under qualified plans to apply to multiemployer plans the same treatment in the adjustment to the $90,000 limit on benefits, where the benefit begins before the Social Security retirement age, as is accorded to plans maintained by governments and tax-exempt organizations.

Exempts multiemployer plans from the alternative benefit limit of 100 percent of the participant's average compensation for his or her high three years.

[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3632

     To amend the Internal Revenue Code of 1986 to grant relief to 
participants in multiemployer plans from certain section 415 limits on 
                       defined benefit pensions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

 Mr. Weller (for himself, Mr. English of Pennsylvania, Mrs. Johnson of 
   Connecticut, Mrs. Kelly, Mr. Quinn, and Mr. Fox of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to grant relief to 
participants in multiemployer plans from certain section 415 limits on 
                       defined benefit pensions.

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

SECTION 1. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415 LIMIT ON 
              DEFINED BENEFIT PENSION PLAN BENEFITS.

    (a) Dollar Limit Reduction.--Subparagraph (F) of section 415(b)(2) 
of the Internal Revenue Code of 1986 (relating to plans maintained by 
governments and tax-exempt organizations) is amended--
            (1) by striking ``and tax-exempt organizations'' in the 
        heading and inserting ``, tax-exempt organizations, and 
        multiemployer plans'', and
            (2) by inserting in the first sentence ``a multiemployer 
        plan (as defined in section 414(f)),'' after ``subtitle''.
    (b) Average Compensation Limit.--Paragraph (11) of section 415(b) 
of such Code (relating to a special limitation rule for governmental 
plans) is amended to read as follows:
            ``(11) Special limitation rule for governmental and 
        multiemployer plans.--In the case of a governmental plan (as 
        defined in section 414(d)) or a multiemployer plan (as defined 
        in section 414(f)), subparagraph (B) of paragraph (1) shall not 
        apply.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 1997.
                                 <all>