A bill to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1954 to provide that persons aged 55 or over who are fully vested under a pension plan shall be entitled to pension benefits when their employment is terminated by their employer.

Requires, under the Employee Retirement Income Security Act of 1974, that pension plans provide that a participant attaining the age of 55 and having a nonforfeitable right to 100 percent of accrued benefits derived from employer contributions may elect that payment of benefits begin within 60 days after the close of the plan year in which there is separation from service by the employer. Provides that benefits may be paid in the form of an anuity or as a lump-sum distribution, but in either case, shall not be less than those benefits to which the participant would be entitled at the normal retirement age. Makes conforming amendments to the Internal Revenue Code.