Older Worker Opportunity Act of 2010 - Amends the Internal Revenue Code to allow employers who provide health and retirement benefits to their employees a tax credit for 25% of the first $6,000 of wages paid to individuals age 62 or older participating in a flexible work program. Terminates such credit after 2012.
Directs the Secretary of Labor to establish a Federal Task Force on Older Workers to promote the hiring and retention of older workers. Requires the Task Force to organize a Conference on the Aging Workforce, which shall include the participation of senior, business, labor, and other interested organizations.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4591 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4591
To promote labor force participation of older Americans, with the goals
of increasing retirement security, reducing the projected shortage of
experienced workers, maintaining future economic growth, and improving
the Nation's fiscal outlook.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 3, 2010
Mr. Sestak introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and Labor, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To promote labor force participation of older Americans, with the goals
of increasing retirement security, reducing the projected shortage of
experienced workers, maintaining future economic growth, and improving
the Nation's fiscal outlook.
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 ``Older Worker Opportunity Act of
2010''.
SEC. 2. TAX CREDIT FOR EMPLOYING OLDER WORKERS IN FLEXIBLE WORK
PROGRAMS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end the following new section:
``SEC. 45R. FLEXIBLE WORK CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
eligible employer, the flexible work credit determined under this
section for the taxable year shall be equal to 25 percent of the
qualified wages for such taxable year.
``(b) Eligible Employer.--For purposes of this section, the term
`eligible employer' means an employer which--
``(1) maintains a qualified trust (within the meaning of
section 401(a)), and
``(2) provides health insurance coverage (as defined in
section 9832(b)(1)(A)) to employees and pays no less than 60
percent of the cost of such health insurance coverage with
respect to each full-time employee receiving such coverage.
``(c) Qualified Wages Defined.--For purposes of this section--
``(1) Qualified wages.--The term `qualified wages' means
the wages paid or incurred by an eligible employer during the
taxable year to eligible individuals.
``(2) Eligible individuals.--
``(A) In general.--The term `eligible individual'
means an individual who, at the time such wages are
paid or incurred--
``(i) has attained the age of 62, and
``(ii) is participating in a formal
flexible work program.
``(B) Limitation.--Such term shall not include any
individual who begins participation in a formal
flexible work program during any period in which more
than 20 percent of the employees of the eligible
employer are already participating in a formal flexible
work program.
``(3) Wages.--
``(A) In general.--The term `wages' has the meaning
given such term by subsection (b) of section 3306
(determined without regard to any dollar limitation
contained in such section).
``(B) Other rules.--Rules similar to the rules of
paragraph (2) and (3) of section 51(c) shall apply for
purposes of this section.
``(C) Termination.--The term `wages' shall not
include any amount paid or incurred to an individual
after December 31, 2012.
``(4) Only first $6,000 of wages per year taken into
account.--The amount of the qualified wages which may be taken
into account with respect to any individual shall not exceed
$6,000 per year.
``(d) Formal Flexible Work Program.--For purposes of this section--
``(1) In general.--The term `formal flexible work program'
means a program of an eligible employer--
``(A) which consists of core time and flex time,
``(B) under which core time does not exceed--
``(i) 20 hours per week,
``(ii) 3 days per week, or
``(iii) 1,000 hours per year, and
``(C) which meets the requirements of subsection
(e).
``(2) Core time.--The term `core time' means the specific
time--
``(A) during which an employee is required to
perform services related to employment, and
``(B) which is determined by the employer.
``(3) Flex time.--The term `flex time' means the time other
than core time--
``(A) during which an employee is required to
perform services related to employment, and
``(B) which is determined at the election of the
employee.
``(e) Requirements.--A program shall not be considered a formal
flexible work program under this section unless such program meets the
following requirements:
``(1) Duration of program.--The program shall allow for
participation for a period of at least 1 year.
``(2) No change in health care benefits.--With respect to a
participant whose work schedule is no less than 20 percent of
the work schedule of a similarly situated full-time employee--
``(A) such participant shall be entitled to the
same health insurance coverage to which a similarly
situated full-time employee would be entitled,
``(B) the employer shall contribute the same
percentage of the cost of health insurance coverage for
such participant as the employer would contribute for a
similarly situated full-time employee, and
``(C) such participant shall be entitled to
participate in a retiree health benefits plan of the
employer in the same manner as a similarly situated
full-time employee, except that service credited under
the plan for any plan year shall be equal to the ratio
of the participant's work schedule during such year to
the work schedule of a similarly situated full-time
employee during such year.
``(3) No reduction in pension benefits.--
``(A) Defined benefit plans.--
``(i) A participant shall be entitled to
participate in a defined benefit plan (within
the meaning of section 414(j)) of the employer
in the same manner as a similarly situated
full-time employee.
``(ii) Service credited to a participant
under the plan for any plan year shall be equal
to the ratio of the participant's work schedule
during such year to the work schedule of a
similarly situated full-time employee during
such year.
``(iii) If the plan uses final average
earnings to determine benefits, final average
earnings of the participant shall be no less
than such earnings were before the participant
entered the program.
``(B) Defined contribution plans.--A participant
shall be entitled to participate in a defined
contribution plan (within the meaning of section
414(i)) of the employer in the same manner as a
similarly situated full-time employee, and the employer
shall match the participant's contributions at the same
rate that the employer would match the contributions of
a similarly situated full-time employee.
``(C) No forfeiture of pension benefits.--The
pension benefits of a participant shall not be
forfeited under the rules of section 411(a)(3)(B) or
section 203(a)(3)(B) of the Employee Retirement Income
Security Act of 1974 with respect to a participant who
has attained normal retirement age as of the end of the
plan year.
``(4) Nondiscrimination rule.--Eligibility to participate
in the program shall not discriminate in favor of highly
compensated employees (within the meaning of section 414(q)).
``(f) Certain Individuals Ineligible.--For purposes of this
section, rules similar to the rules of section 51(i)(1) and section 52
shall apply.
``(g) Regulations.--The Secretary may prescribe such regulations as
are necessary to carry out the purposes of this section, including
simplified rules to satisfy the requirements of subsection (e)(3)(C)
taking into account the requirements of section 411 and section 203 of
the Employee Retirement Income Security Act of 1974.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (34), by striking the period at the
end of paragraph (35) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(36) the flexible work credit determined under section
45R(a).''.
(c) No Double Benefit.--Subsection (a) of section 280C of the
Internal Revenue Code of 1986 is amended by inserting ``45R(a),'' after
``45P(a),''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45R. Flexible work credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to wages paid after December 31, 2009.
SEC. 3. FEDERAL TASK FORCE ON OLDER WORKERS.
(a) Establishment.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Labor shall establish a Federal
Task Force on Older Workers (referred to in this Act as the ``Task
Force'').
(b) Membership.--The Task Force established pursuant to subsection
(a) shall be composed of representatives from all relevant Federal
agencies that have regulatory jurisdiction over, or a clear policy
interest in, issues relating to older workers, including the Internal
Revenue Service, the Social Security Administration, the Equal
Employment Opportunity Commission, and the Administration on Aging of
the Department of Health and Human Services.
(c) Activities.--
(1) After one year.--Not later than 1 year after the date
of establishment of the Task Force, the Task Force shall--
(A) identify statutory and regulatory provisions in
current law that tend to limit opportunities for older
workers, and develop legislative and regulatory
proposals to address such limitations;
(B) identify best practices in the private sector
for hiring and retaining older workers, and serve as a
clearinghouse of such information; and
(C) assess the effectiveness and cost of programs
that Federal agencies have implemented to hire and
retain older workers and recommend cost-effective
programs for all Federal agencies to hire and retain
older workers.
(2) After three years.--Not later than 3 years after the
date of establishment of the Task Force, the Task Force shall--
(A) assess the effectiveness of the provisions of
this Act; and
(B) organize a Conference on the Aging Workforce,
which shall include the participation of senior,
business, labor, and other interested organizations.
(3) Report.--The Task Force shall submit a report to
Congress on the activities of the Task Force pursuant to
paragraph (1). Such report shall be made available to the
public.
(d) Consultation.--In carrying out activities pursuant to this
section, the Task Force shall consult with senior, business, labor, and
other interested organizations.
(e) Applicability of FACA; Termination of Task Force.--
(1) FACA.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to the Task Force established pursuant to
this Act.
(2) Termination.--The Task Force shall terminate 30 days
after the date the Task Force completes all of its duties under
this Act.
<all>
Introduced in House
Introduced in House
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Education and Labor
Referred to the Subcommittee on Workforce Protections.
Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
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