Vested Employee Pension Benefit Protection Act

II 116TH CONGRESS 1ST SESSION S. 2276 To amend the Internal Revenue Code of 1986 to protect employees in the building and construction industry who are participants in multiemployer plans, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 25, 2019 Mr. BLUNT (for himself, Ms. DUCKWORTH, Mr. DURBIN, and Mr. HAWLEY) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to protect employees in the building and construction industry who are participants in multiemployer plans, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Vested Employee Pen- 4 sion Benefit Protection Act’’. 5 VerDate Sep 11 2014 17:09 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2276.IS S2276 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 2276 IS SEC. 2. MINIMUM AGE FOR DISTRIBUTIONS DURING WORK- 1 ING RETIREMENT. 2 (a) IN GENERAL.—Paragraph (36) of section 401(a) 3 of the Internal Revenue Code of 1986 is amended to read 4 as follows: 5 ‘‘(36) DISTRIBUTIONS DURING WORKING RE- 6 TIREMENT.— 7 ‘‘(A) IN GENERAL.—A trust forming part 8 of a pension plan shall not be treated as failing 9 to constitute a qualified trust under this section 10 solely because the plan provides that a distribu- 11 tion may be made from such trust to an em- 12 ployee who has attained age 62 and who is not 13 separated from employment at the time of such 14 distribution. 15 ‘‘(B) CERTAIN EMPLOYEES IN THE BUILD- 16 ING AND CONSTRUCTION INDUSTRY.—Subpara- 17 graph (A) shall be applied by substituting ‘age 18 55’ for ‘age 62’ in the case of a multiemployer 19 plan described in section 4203(b)(1)(B)(i) of 20 the Employee Retirement Income Security Act 21 of 1974, with respect to individuals who were 22 participants in such plan on or before April 30, 23 2013, if— 24 VerDate Sep 11 2014 17:09 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2276.IS S2276 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 2276 IS ‘‘(i) the trust to which subparagraph 1 (A) applies was in existence before Janu- 2 ary 1, 1970, and 3 ‘‘(ii) before December 31, 2011, at a 4 time when the plan provided that distribu- 5 tions may be made to an employee who has 6 attained age 55 and who is not separated 7 from employment at the time of such dis- 8 tribution, the plan received at least 1 writ- 9 ten determination from the Internal Rev- 10 enue Service that the trust to which sub- 11 paragraph (A) applies constituted a quali- 12 fied trust under this section.’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply to distributions made before, on, 15 or after the date of the enactment of this Act. 16 Æ VerDate Sep 11 2014 17:09 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S2276.IS S2276 pamtmann on DSKBFK8HB2PROD with BILLS