Pension Equity Act of 1983

Pension Equity Act of 1983 - Amends the Employee Retirement Income Security Act of 1974 ("the Act") to lower the age limitation for: (1) minimum pension plan participation standards from age 25 to age 21; and (2) the computation of periods of service from age 22 to age 21.

Credits as "hours of service" employee absences due to the birth or adoption of a child if the employee would incur a one-year break in service without such credit. Limits such credit to the year of birth or adoption. Includes such credit in the computation of accrued benefits under a pension plan.

Requires pension plan annuities which are under either the normal form of benefit or the optional form of benefit to have the effect of a qualified joint and survivor annuity.

Requires that pension plan participants receive a written explanation of the terms of joint and survivor annuity benefits before they elect to accept or reject such benefits. Prohibits survivor annuity payments from being less than joint annuity payments would have been if retirement had preceded death.

Requires that pension plans treat surviving individuals who were spouses of annuitants for the one-year period ending on the annuity starting date as though such survivors were the annuitant's spouse on the day of death, regardless of actual marital status on the date of death. Authorizes annuitants and certain spouses to waive such survivor's annuity.

Conditions the efficacy of a participant's election regarding joint and survivor annuity benefits upon the written consent of the participant's spouse.

Exempts qualified domestic relations orders from the Act's proscriptions against alienation and assignment of pension plan benefits. Sets forth procedural guidelines for the payment of benefits to an alternate payee under such an order.

Amends the Internal Revenue Code to provide that investments in annuity contracts that are subject to domestic relations orders will be allocated on a pro rata basis between the appropriate distributions under such orders.

Allows certain distributions made to alternate payees under domestic relations orders to be treated as qualifying rollover distributions.

Amends the Act to require plan administrators to notify participants that certain benefits may be forfeitable if the participant dies.

Raises from $1750 to $3,500 the ceiling placed on distributions made for employee services which may be disregarded for purposes of determining accrued benefits.