To amend the Internal Revenue Code of 1986 to provide that governmental pension plans may include certain firefighters, emergency medical technicians, and paramedics, and for other purposes.

I 117TH CONGRESS 1ST SESSION H. R. 3874 To amend the Internal Revenue Code of 1986 to provide that governmental pension plans may include certain firefighters, emergency medical techni- cians, and paramedics, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 14, 2021 Mr. MCHENRY (for himself, Mr. HUDSON, Mr. MURPHY of North Carolina, Mr. CAWTHORN, Mr. ROUZER, Mr. BUDD, Mr. BISHOP of North Caro- lina, and Ms. FOXX) introduced the following bill; which was referred to the Committee on Education and Labor, and in addition to the Com- mittee on Ways and Means, 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 amend the Internal Revenue Code of 1986 to provide that governmental pension plans may include certain fire- fighters, emergency medical technicians, and paramedics, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:38 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3874.IH H3874 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3874 IH SECTION 1. GOVERNMENTAL PENSION PLANS MAY IN- 1 CLUDE CERTAIN FIREFIGHTERS, EMER- 2 GENCY MEDICAL TECHNICIANS, AND PARA- 3 MEDICS. 4 (a) IN GENERAL.—Section 414(d) of the Internal 5 Revenue Code of 1986 (relating to governmental plans) 6 is amended by adding at the end the following: ‘‘The term 7 ‘governmental plan’ also includes a plan which is estab- 8 lished by a State or political subdivision thereof and main- 9 tained by a public safety agency (described in section 10 501(c) and exempt from taxation under section 501(a)), 11 and all of the participants of which are employees of such 12 agency who are emergency response providers (defined in 13 section 2 of the Homeland Security Act of 2022 (6 U.S.C. 14 101)), substantially all of whose services as emergency re- 15 sponse providers are in the performance of firefighting 16 services or out-of-hospital emergency medical services for 17 a political subdivision of a State under a contract between 18 such public safety agency and the political subdivision of 19 a State.’’ 20 (b) EMPLOYEE RETIREMENT INCOME SECURITY ACT 21 OF 1974.— 22 (1) IN GENERAL.—Section 3(32) of the Em- 23 ployee Retirement Income Security Act of 1974 (29 24 U.S.C. 1002(32)) is amended by adding at the end 25 the following: ‘‘The term ‘governmental plan’ also 26 VerDate Sep 11 2014 22:38 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3874.IH H3874 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3874 IH includes a plan which is established by a State or 1 political subdivision thereof and maintained by a 2 public safety agency (described in section 501(c) of 3 the Internal Revenue Code of 1986 and exempt from 4 taxation under section 501(a) of such Code), and all 5 of the participants of which are employees of such 6 agency who are emergency response providers (de- 7 fined in section 2 of the Homeland Security Act of 8 19 2002 (6 U.S.C. 101)), substantially all of whose 9 services as emergency response providers are in the 10 performance of firefighting services or out-of-hos- 11 pital emergency medical services for a political sub- 12 division of a State under a contract between such 13 public safety agency and the political subdivision of 14 a State.’’ 15 (2) PBGC EXCEPTION.—Section 4021(b)(2) of 16 such Act is amended by striking ‘‘described in the 17 last sentence of section 3(32)’’ and inserting ‘‘de- 18 scribed in either of the last two sentences of section 19 3(32)’’. 20 (c) CONFORMING AMENDMENTS.— 21 (1) Section 414(h)(2) of the Internal Revenue 22 Code of 1986 is amended by striking ‘‘described in 23 the last sentence of section 414(d) (relating to plans 24 of Indian tribal governments)’’ and inserting ‘‘de- 25 VerDate Sep 11 2014 22:38 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3874.IH H3874 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3874 IH scribed in either of the last two sentences of sub- 1 section (d)’’. 2 (2) Section 415(b)(2)(H)(i) of such Code is 3 amended by adding at the end the following: ‘‘or a 4 public safety agency described in the last sentence of 5 section 414(d)’’. 6 (3) Section 415(b)(2)(H)(ii)(I) of such Code is 7 amended by striking ‘‘or any political subdivision’’ 8 and inserting ‘‘any political subdivision, or a public 9 safety agency described in the last sentence of sec- 10 tion 414(d)’’. 11 (4) Section 415(b)(10)(A) of such Code is 12 amended by striking ‘‘described in the last sentence 13 of section 414(d) (relating to plans of Indian tribal 14 governments)’’ and inserting ‘‘described in either of 15 the last two sentences of section 414(d)’’. 16 (d) EFFECTIVE DATE.—The amendment made by 17 this section shall apply to plan years beginning after the 18 date of the enactment of this Act. 19 Æ VerDate Sep 11 2014 22:38 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3874.IH H3874 kjohnson on DSK79L0C42PROD with BILLS