S. 1006 (104th): Pension Simplification Act of 1995

Jun 30, 1995 (104th Congress, 1995–1996)
Died (Referred to Committee)
See Instead:

H.R. 2037 (same title)
Referred to Committee — Jul 13, 1995

David Pryor
Senator from Arkansas
Read Text »
Last Updated
Jun 30, 1995
72 pages
Related Bills
S. 762 (103rd) was a previous version of this bill.

Referred to Committee
Last Action: Apr 02, 1993

H.R. 2037 (identical)

Referred to Committee
Last Action: Jul 13, 1995


This bill was introduced on June 30, 1995, in a previous session of Congress, but was not enacted.

Introduced Jun 30, 1995
Referred to Committee Jun 30, 1995
Full Title

A bill to amend the Internal Revenue Code of 1986 to simplify the pension laws, and for other purposes.


No summaries available.

8 cosponsors (5R, 3D) (show)

Senate Finance

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Primary Source

THOMAS.gov (The Library of Congress)

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S. stands for Senate bill.

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The bill’s title was written by its sponsor.

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

Title I - Simplification of Nondiscrimination Provisions Title II: Simplified Distribution Rules Title III: Targeted Access to Pension Plans for Small Employers Title IV: Paperwork Reduction Title V: Miscellaneous Simplification Pension Simplification Act of 1995
Title I - Simplification of Nondiscrimination Provisions
Redefines the term "highly compensated employee" for pension, profit sharing, stock bonus plan, etc. purposes. Makes such an employee one who is a five-percent owner, has compensation from the employer in excess of $80,000, or was the most highly compensated officer of the employer. Provides a special rule where no employees meet those criteria. Defines "participant's compensation" and "compensation" for purposes of specified provisions.
Section 104 -
Provides alternative methods of satisfying the special nondiscrimination requirements applicable to elective deferrals and employer matching contributions. Modifies the two-part nondiscrimination test for elective contributions under cash or deferred arrangements by permitting the average deferral percentage for nonhighly compensated employees for the preceding year to be used in determining the permitted average deferral percentage for highly compensated employees for the current year.
Title II - Simplified Distribution Rules
Amends the Internal Revenue Code to repeal: (1) the $5,000 limitation on the exclusion of employees' death benefits; and (2) the five-year forward income averaging for lump-sum distributions.
Section 203 -
Establishes a method of taxing annuity payments by taking into account the investment in the contract and the number of anticipated payments.
Title III - Targeted Access to Pension Plans for Small Employers
Allows a current year business credit for small employer pension plan qualified start-up costs.
Section 302 -
Modifies certain simplified employee pensions with respect to: (1) allowable participants and participation requirements; and (2) deferral percentages.
Section 303 -
Prohibits treating a plan as a top-heavy plan if the employer has no highly compensated employees by reason of specified provisions.
Section 304 -
Prohibits treating a cash or deferred arrangement as qualified if it is part of a plan maintained by a State or local government or subdivision or a tax-exempt organization described in Internal Revenue Code section 501(c)(3). (Current law applies that prohibition to all tax-exempt organizations, not just to 501(c)(3) tax-exempt organizations.)
Section 305 -
Prohibits any proposed regulation relating to qualified pension plans from taking effect unless it includes provisions to address the special needs of small employers.
Title IV - Paperwork Reduction
Repeals provisions relating to a limitation in the case of a defined benefit plan and a defined contribution plan for the same employee.
Section 402 -
Authorizes the Secretary, as a condition of sponsorship, to prescribe rules defining the duties and responsibilities of certain master and prototype retirement plans.
Title V - Miscellaneous Simplification
Revises the definition of a leased employee to mean one whose services are performed under the control of a service recipient, instead of one whose services are historically performed by employees.
Section 502 -
Establishes a contribution limit for owner-employees of retirement plans.
Section 503 -
Eliminates the special vesting rule for multiemployer plans.
Section 504 -
Amends minimum funding standards provisions to provide for the treatment of multiemployer plans with regard to full funding limitation provisions and valuation provisions.
Section 505 -
Permits certain employers to elect an alternative full funding limitation with respect to any defined benefit plan based solely on the accrued liability under such plan. Requires the Secretary to adjust the 150-percent current liability full funding limit for other plans if there is a revenue shortfall.
Section 506 -
Defines affiliated employers for Treasury regulation purposes with respect to tax-exemption.
Section 507 -
Modifies the treatment of governmental plans with respect to limits on contributions and benefits.
Section 508 -
Provides special rules for distributions of deferred compensation plans of State and local governments and tax-exempt organizations.
Section 509 -
Provides for the application of participant's compensation provisions to permanently and totally disabled participants when a defined contribution plan provides for the continuation of contributions on behalf of all such disabled participants for a fixed or determinable period.
Section 510 -
Allows rural cooperative plans which include cash or deferred arrangements to make distributions to participants on the basis of hardship or after attainment of age 59 and one-half years.
Section 511 -
Excludes non-pilots from consideration regarding the minimum coverage requirements of minimum participation standards provisions as they apply to a plan to provide contributions or benefits for air pilots.
Section 512 -
Treats certain retirement incentive payments for tenured faculty as not providing for the deferral of compensation.
Section 513 -
Makes the social security retirement age the uniform retirement age for purposes of discrimination testing.
Section 514 -
Makes uniform the penalty provisions applicable to certain pension reporting requirements.
Section 515 -
Establishes the National Commission on Private Pension Plans to report to the President and congressional leaders on a review of existing Federal incentives and programs that encourage and protect private retirement savings. Requires the report to make recommendations where appropriate for increasing the level and security of private retirement savings. Authorizes appropriations.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

No summary available.

House Democratic Caucus Summary

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