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

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.

States that multiemployer plans shall not be combined or aggregated with other plans for limitation purposes.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1603 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1603

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2001

Mr. Weller (for himself, Mrs. Johnson of Connecticut, and Mr. English) 
 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 
                           retirement plans.

    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 
              RETIREMENT 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) Multiemployer Plans Not Combined or Aggregated With Other 
Plans.--
            (1) In general.--Subsection (f) of section 415 of such Code 
        (relating to combining of plans) is amended by adding at the 
        end the following new paragraph:
            ``(3) Exception for multiemployer plan.--Notwithstanding 
        paragraph (1) and subsection (g), a multiemployer plan (as 
        defined in section 414(f)) shall not be combined or aggregated 
        with any other plan maintained by an employer for purposes of 
        applying the limitations established in this section.''.
            (2) Conforming amendment.--Subsection (g) of section 415 of 
        such Code (relating to aggregation of plans) is amended by 
        striking ``The Secretary'' and inserting ``Except as provided 
        in subsection (f)(3), the Secretary''.
    (d) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2001.
                                 <all>