Volunteer Emergency Services Recruitment and Retention Act of 2006 - Amends the Internal Revenue Code to allow sponsors of certain deferred compensation plans to elect to include length of service award plans for bona fide volunteers providing fire fighting and prevention services, emergency medical services, and emergency rescue services.
Directs the Secretary of Labor to issue regulations exempting a length of service award program from treatment as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA).
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6027 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6027
To amend the Internal Revenue Code of 1986 to provide recruitment and
retention incentives for volunteer emergency service workers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2006
Mr. King of New York introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, 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 recruitment and
retention incentives for volunteer emergency service workers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Volunteer Emergency Services
Recruitment and Retention Act of 2006''.
SEC. 2. ELECTIVE TREATMENT OF LENGTH OF SERVICE AWARD PROGRAMS AS
ELIGIBLE DEFERRED COMPENSATION PLANS.
(a) In General.--Section 457(e) of the Internal Revenue Code of
1986 (relating to other definitions and special rules) is amended by
adding at the end the following new paragraph:
``(19) Special rules applicable to length of service award
plans.--
``(A) In general.--The term `eligible deferred
compensation plan' shall include, at the election of
its sponsor, any length of service award plan. Any such
election shall be irrevocable. In the case of a length
of service award plan whose sponsor has elected to have
such plan treated as an eligible deferred compensation
plan, such plan shall be administered in a manner
consistent with the requirements of this section and
such sponsor shall be treated as an eligible employer
described in paragraph (1)(A).
``(B) Length of service award plan.--For purposes
of this paragraph--
``(i) In general.--The term `length of
service award plan' means any plan paying
solely length of service awards to bona fide
volunteers (or their beneficiaries) on account
of qualified services performed by such
volunteers.
``(ii) Bona fide volunteer.--An individual
shall be treated as a bona fide volunteer if
the only compensation received by such
individual for performing qualified services is
in the form of--
``(I) reimbursement for (or a
reasonable allowance for) reasonable
expenses incurred in the performance of
such services, or
``(II) reasonable benefits
(including length of service awards),
and fees for such services, customarily
paid by eligible employers in
connection with the performance of such
services by volunteers.
``(iii) Qualified services.--The term
`qualified services' means fire fighting and
prevention services, emergency medical
services, ambulance services, and emergency
rescue services.
``(C) Maximum deferral amount.--In the case of a
length of service award plan whose sponsor has elected
to have such plan treated as an eligible deferred
compensation plan, subsection (b)(2) shall be applied
by striking `the lesser of--' and all that follows and
inserting `the applicable dollar amount,'.
``(D) Distribution requirements.--In the case of a
length of service award plan whose sponsor has elected
to have such plan treated as an eligible deferred
compensation plan, subsection (d)(1)(A)(ii) shall be
applied by deeming a severance from employment to have
occurred at the later of--
``(i) the payment date under the terms of
the plan, or
``(ii) the date on which the plan
participant ceases to perform qualified
services.
``(E) Limitation on accruals.--
``(i) In general.--In the case of a length
of service award plan that is a defined benefit
plan (as defined in section 414(j)) whose
sponsor has not elected to have such plan
treated as an eligible deferred compensation
plan, such plan shall be treated as not
providing for the deferral of compensation if
the aggregate amount of length of service
awards accruing with respect to any year of
service for any bona fide volunteer does not
exceed $5,000. In the case of a length of
service award plan described in the preceding
sentence that is a defined benefit plan (as
defined in section 414(j)), the limitation on
the annual deferral shall apply to the
actuarial present value of the aggregate amount
of length of service awards accruing with
respect to any year of service. Such actuarial
present value shall be calculated using
reasonable actuarial assumptions and methods
assuming payment shall be made under the most
valuable form of payment of the length of
service award under the program with payment
commencing at the later of the earliest age at
which unreduced benefits are payable under the
program or the participant's current age.
``(ii) Cost-of-living adjustment.--In the
case of taxable years beginning after December
31, 2007, the Secretary shall adjust the $5,000
amount under clause (i) at the same time and in
the same manner as under section 415(d), except
that the base period shall be the calendar
quarter beginning July 1, 2006, and any
increase under this paragraph that is not a
multiple of $500 shall be rounded to the next
lowest multiple of $500.''.
(b) Conforming Amendments.--
(1) Section 457(e)(11) of the Internal Revenue Code of 1986
is amended to read as follows:
``(11) Certain plans excluded.--Any bona fide vacation
leave, sick leave, compensatory time, severance pay, disability
pay, or death benefit plan shall be treated as not providing
for the deferral of compensation.''.
(2) Section 3121(a)(5)(I) is amended by striking ``section
457(e)(11)(A)(ii)'' and inserting ``section 457(e)(19)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
SEC. 3. EXEMPTION OF LENGTH OF SERVICE AWARD PROGRAMS FROM THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974.
The Secretary of Labor shall issue guidance clarifying that a
length of service award program described in section 457(e)(19) of the
Internal Revenue Code of 1986 is not an employee pension benefit plan
under section 3(2) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(2)).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Subcommittee on Employer-Employee Relations.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line