Keep Student Loans Affordable Act of 2013 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to extend the 3.4% interest rate on Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2013, to Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2014.
Amends the Internal Revenue Code to modify rules for required distributions from tax-exempt pension plans to an employee who dies before such employee's entire interest is distributed to require such interest to be distributed within five years after the death of such employee, subject to exceptions for an eligible designated beneficiary and surviving spouse of such employee. Defines "eligible designated beneficiary" to include a disabled or chronically-ill individual. Exempts from such modification a binding annuity contract in effect on the enactment date of this Act.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1238 Placed on Calendar Senate (PCS)]
Calendar No. 124
113th CONGRESS
1st Session
S. 1238
To amend the Higher Education Act of 1965 to extend the current reduced
interest rate for undergraduate Federal Direct Stafford Loans for 1
year, to modify required distribution rules for pension plans, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 27, 2013
Mr. Reed (for himself, Mrs. Hagan, Mr. Franken, Mr. Harkin, Ms.
Stabenow, Ms. Warren, Mrs. Murray, Mr. Reid, Ms. Landrieu, Mr. Pryor,
Mr. Durbin, Mr. Whitehouse, Mr. Udall of New Mexico, Ms. Klobuchar, Mr.
Brown, Mr. Menendez, Mr. Leahy, Mr. Sanders, Mrs. Shaheen, Mr. Schatz,
Mr. Levin, Ms. Hirono, Mrs. McCaskill, Mr. Murphy, Mr. Blumenthal, Ms.
Baldwin, Mr. Begich, Mr. Heinrich, Mrs. Gillibrand, Mr. Cardin, Mr.
Merkley, Mr. Rockefeller, Mr. Wyden, Mrs. Boxer, Ms. Mikulski, Mr.
Nelson, Mr. Johnson of South Dakota, Mr. Casey, and Mr. Coons)
introduced the following bill; which was read twice and ordered placed
on the calendar
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to extend the current reduced
interest rate for undergraduate Federal Direct Stafford Loans for 1
year, to modify required distribution rules for pension plans, and for
other purposes.
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 ``Keep Student Loans Affordable Act of
2013''.
SEC. 2. INTEREST RATE EXTENSION.
Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)(7)(D)) is amended--
(1) in the matter preceding clause (i), by striking ``and
before July 1, 2013,'' and inserting ``and before July 1,
2014,''; and
(2) in clause (v), by striking ``and before July 1, 2013,''
and inserting ``and before July 1, 2014,''.
SEC. 3. MODIFICATIONS OF REQUIRED DISTRIBUTION RULES FOR PENSION PLANS.
(a) In General.--Section 401(a)(9)(B) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(B) Required distributions where employee dies
before entire interest is distributed.--
``(i) 5-year general rule.--A trust shall
not constitute a qualified trust under this
section unless the plan provides that, if an
employee dies before the distribution of the
employee's interest (whether or not such
distribution has begun in accordance with
subparagraph (A)), the entire interest of the
employee will be distributed within 5 years
after the death of such employee.
``(ii) Exception for eligible designated
beneficiaries.--If--
``(I) any portion of the employee's
interest is payable to (or for the
benefit of) an eligible designated
beneficiary,
``(II) such portion will be
distributed (in accordance with
regulations) over the life of such
eligible designated beneficiary (or
over a period not extending beyond the
life expectancy of such beneficiary),
and
``(III) such distributions begin
not later than 1 year after the date of
the employee's death or such later date
as the Secretary may by regulations
prescribe,
then, for purposes of clause (i) and except as
provided in clause (iv) or subparagraph
(E)(iii), the portion referred to in subclause
(I) shall be treated as distributed on the date
on which such distributions begin.
``(iii) Special rule for surviving spouse
of employee.--If the eligible designated
beneficiary referred to in clause (ii)(I) is
the surviving spouse of the employee--
``(I) the date on which the
distributions are required to begin
under clause (ii)(III) shall not be
earlier than the date on which the
employee would have attained age 70\1/
2\, and
``(II) if the surviving spouse dies
before the distributions to such spouse
begin, this subparagraph shall be
applied as if the surviving spouse were
the employee.
``(iv) Rules upon death of eligible
designated beneficiary.--If an eligible
designated beneficiary dies before the portion
of an employee's interest described in clause
(ii) is entirely distributed, clause (ii) shall
not apply to any beneficiary of such eligible
designated beneficiary and the remainder of
such portion shall be distributed within 5
years after the death of such beneficiary.''.
(b) Definition of Eligible Designated Beneficiary.--Section
401(a)(9)(E) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(E) Definitions and rules relating to designated
beneficiary.--For purposes of this paragraph--
``(i) Designated beneficiary.--The term
`designated beneficiary' means any individual
designated as a beneficiary by the employee.
``(ii) Eligible designated beneficiary.--
The term `eligible designated beneficiary'
means, with respect to any employee, any
designated beneficiary who, as of the date of
death of the employee, is--
``(I) the surviving spouse of the
employee,
``(II) subject to clause (iii), a
child of the employee who has not
reached majority (within the meaning of
subparagraph (F)),
``(III) disabled (within the
meaning of section 72(m)(7)),
``(IV) a chronically ill individual
(within the meaning of section
7702B(c)(2), except that the
requirements of subparagraph (A)(i)
thereof shall only be treated as met if
there is a certification that, as of
such date, the period of inability
described in such subparagraph with
respect to the individual is an
indefinite one that is reasonably
expected to be lengthy in nature), or
``(V) an individual not described
in any of the preceding subparagraphs
who is not more than 10 years younger
than the employee.
``(iii) Special rule for children.--Subject
to subparagraph (F), an individual described in
clause (ii)(II) shall cease to be an eligible
designated beneficiary as of the date the
individual reaches majority and the requirement
of subparagraph (B)(i) shall not be treated as
met with respect to any remaining portion of an
employee's interest payable to the individual
unless such portion is distributed within 5
years after such date.''.
(c) Required Beginning Date.--Section 401(a)(9)(C) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
clause:
``(v) Employees becoming 5-percent owners
after age 70\1/2\.--If an employee becomes a 5-
percent owner (as defined in section 416) with
respect to a plan year ending in a calendar
year after the calendar year in which the
employee attains age 70\1/2\, then clause
(i)(II) shall be applied by substituting the
calendar year in which the employee became such
an owner for the calendar year in which the
employee retires.''.
(d) Effective Dates.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to distributions
with respect to employees who die after December 31, 2013.
(2) Required beginning date.--
(A) In general.--The amendment made by subsection
(c) shall apply to employees becoming a 5-percent owner
with respect to plan years ending in calendar years
beginning before, on, or after the date of the
enactment of this Act.
(B) Special rule.--If--
(i) an employee became a 5-percent owner
with respect to a plan year ending in a
calendar year which began before January 1,
2013, and
(ii) the employee has not retired before
calendar year 2014,
such employee shall be treated as having become a 5-
percent owner with respect to a plan year ending in
2013 for purposes of applying section 401(a)(9)(C)(v)
of the Internal Revenue Code of 1986 (as added by the
amendment made by subsection (c)).
(3) Exception for certain beneficiaries.--If a designated
beneficiary of an employee who dies before January 1, 2014,
dies after December 31, 2013--
(A) the amendments made by this section shall apply
to any beneficiary of such designated beneficiary, and
(B) the designated beneficiary shall be treated as
an eligible designated beneficiary for purposes of
applying section 401(a)(9)(B)(iv) of such Code (as in
effect after the amendments made by this section).
(4) Exception for certain existing annuity contracts.--
(A) In general.--The amendments made by this
section shall not apply to a qualified annuity which is
a binding annuity contract in effect on the date of the
enactment of this Act and at all times thereafter.
(B) Qualified annuity contract.--For purposes of
this paragraph, the term ``qualified annuity'' means,
with respect to an employee, an annuity--
(i) which is a commercial annuity (as
defined in section 3405(e)(6) of such Code) or
payable by a defined benefit plan,
(ii) under which the annuity payments are
substantially equal periodic payments (not less
frequently than annually) over the lives of
such employee and a designated beneficiary (or
over a period not extending beyond the life
expectancy of such employee or the life
expectancy of such employee and a designated
beneficiary) in accordance with the regulations
described in section 401(a)(9)(A)(ii) of such
Code (as in effect before such amendments) and
which meets the other requirements of this
section 401(a)(9) of such Code (as so in
effect) with respect to such payments, and
(iii) with respect to which--
(I) annuity payments to the
employee have begun before January 1,
2014, and the employee has made an
irrevocable election before such date
as to the method and amount of the
annuity payments to the employee or any
designated beneficiaries, or
(II) if subclause (I) does not
apply, the employee has made an
irrevocable election before the date of
the enactment of this Act as to the
method and amount of the annuity
payments to the employee or any
designated beneficiaries.
Calendar No. 124
113th CONGRESS
1st Session
S. 1238
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to extend the current reduced
interest rate for undergraduate Federal Direct Stafford Loans for 1
year, to modify required distribution rules for pension plans, and for
other purposes.
_______________________________________________________________________
June 27, 2013
Read twice and ordered placed on the calendar
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5317, S5476)
Introduced in the Senate. Read twice. Ordered Placed on Senate Legislative Calendar under General Orders. Calendar No. 124.
Motion to proceed to consideration of measure made in Senate. (consideration: CR S5513-5514)
Cloture motion on the motion to proceed to measure presented in Senate. (consideration: CR S5522-5524; text: CR S5522)
Motion to proceed to consideration of measure made in Senate. (consideration: CR S5531-5537, S5543-5564)
Motion to proceed to consideration of measure made in Senate. (consideration: CR S5584-5602, S5603-5615)
Cloture on the motion to proceed to measure not invoked in Senate by Yea-Nay Vote. 51 - 49. Record Vote Number: 171. (consideration: CR S5595; text: CR S5595)
Roll Call #171 (Senate)Motion by Senator Reid to reconsider the vote by which cloture was not invoked on the motion to proceed to the measure (Record Vote No. 171) made in Senate. (consideration: CR S5595)
Motion to proceed to consideration of measure made in Senate. (consideration: CR S5625-5628)
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Motion to proceed to consideration of measure made in Senate. (consideration: CR S5675)
Motion to proceed to measure considered in Senate. (consideration: CR S5691)
Motion to proceed to consideration of measure made in Senate. (consideration: CR S5717-5718)