Retirement Health Plan Act of 1987 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to provide protection for private retirement health plan benefits.
Title I: Reporting and Disclosure Requirements for Retirement Health Plans - Makes specified ERISA disclosure and reporting requirements applicable to retirement health plans.
Requires with respect to retirement health plans that: (1) all provisions of the plan be in writing; (2) the rights of participants and beneficiaries under such plan be legally enforceable; and (3) such plan be established with the intention of being maintained for an indefinite period of time.
Applies certain pension plan annual reporting requirements to retirement health plans.
Makes the exemption from certain reporting and disclosure requirements of employee welfare benefit plans unavailable in the case of retirement health plans.
Requires reporting of participant's benefit rights on request in the case of retirement health plans.
Allows alternative methods of compliance with disclosure and reporting requirements for retirement health plans.
Title II: Vesting Requirements - Sets forth minimum vesting standards for retirement health plans. Provides for a nonforfeitable right to medical benefits under retirement health plans for participants who are retired or eligible for retirement (and for their surviving beneficiaries).
Title III: Tax Incentives for Vesting and Full Funding of Retirement Health Plan Benefits - Adds retirement health plan trusts to the list of tax-exempt organizations under the Internal Revenue Code.
Provides for a tax credit for full funding of retirement health plans. Provides for approval of a "prescribed percentage" in determining such credit by joint resolution of the Congress.
Title IV: Retirement Health Plan Termination Insurance Program - Subtitle A: Basic Provisions - Includes retirement health plans under provisions for plan termination insurance. Revises definitions to reflect such inclusion.
Sets forth premium rates for retirement health plans termination insurance.
Provides that retirement health plan benefits are guaranteed by the Retirement Benefit Guaranty Corporation (as redesignated by this Act). Guarantees that the Corporation upon termination of the plan will distribute the amount of accrued benefit in a lump sum to the participant (or among surviving beneficiaries). Limits the guarantee to benefits with respect to participants who have retired or who are eligible to retire. Sets forth other limitations.
Permits termination of retirement health plans only: (1) where they are sufficient to meet benefit commitments to eligible participants; or (2) upon meeting distress criteria.
Sets forth provisions for the allocation of assets of a terminating retirement health plan.
Sets forth revisions relating to section 4049 trusts.
Sets forth provisions relating to liability for termination of retirement health benefit plans.
Subtitle B: Conforming Provisions - Redesignates the Pension Benefit Guaranty Corporation as the Retirement Benefit Guaranty Corporation.
Establishes a revolving fund for retirement health plan benefits.
Sets forth conforming amendments for coverage of retirement health plans under title IV (Plan Termination Insurance) of ERISA.
Sets an aggregate limit on the amount of retirement health plan benefits guaranteed.
Includes retirement health plans under provisions for institution of termination proceedings by the Corporation and under provisions relating to reportable events.
Limits recapture of payments to pension plans.
Sets forth conforming amendments with respect to reports to trustees, dates of termination, and amounts payable by the Corporation.
Provides for liability of the substantial employer for withdrawal from retirement health plans under multiple controlled groups.
Provides for liability on termination of retirement health plans under multiple controlled groups.
Includes retirement health plans under provisions for annual notification of substantial employers.
Makes conforming amendments with respect to recovery of liability for plan termination and liens for liability.
Sets forth enforcement authority relating to terminations of retirement health plans.
Sets forth an effective date and related rules.
Introduced in House
Introduced in House
Referred to House Committee on Education and Labor.
Referred to House Committee on Ways and Means.
Referred to Subcommittee on Health.
Referred to Subcommittee on Labor-Management Relations.
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