Retirement Security Portability Non-Discrimination Act of 1981

Retirement Security Portability Non-Discrimination Act of 1981 - Title I: Amendments to the Employee Retirement Income Security Act of 1974 - Subtitle A: Vesting; Benefit Accrual; Reciprocal Agreements - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to allow a pension plan to meet minimum vesting standards if an employee who has completed at least five years of service has a nonforfeitable right to 100 percent of his accrued benefit derived from employer contributions. Eliminates the prohibition from participation in a plan by employees who begin employment five years or less before the normal retirement age. Prohibits suspension or reduction of an employee's benefit accrual, in the case of a defined benefit plan, or of employer contributions to the employee's account, in the case of a defined contribution plan, solely because of age.

Permits contributions to a pension or welfare plan made pursuant to a collective bargaining agreement to be transferred to another such plan under which the employee had previously participated.

Subtitle B: Joint and Survivor Annuity Requirements - Requires pension plans which pay benefits in the form of an annuity to provide a survivor's annuity for the spouse of a participant who dies before the annuity starting date. Permits lump-sum or installment distributions of annuities of not more than $1,750.

Requires a plan under which the normal form of benefit is not an annuity to make lump-sum or installment distributions to a surviving spouse, not later than 60 days after the participant's last plan year, of a participant's nonforfeitable benefit.

Requires any election to take the joint and survivor annuity to be signed by both the participant and the spouse and to be notarized.

Eliminates the allowance of provisions in such plans which make ineffective an election, or a revocation of an election, if the participant dies within two years of such election or revocation.

Limits increases in the costs of a plan to those attributable to the availability of survivors' benefits before the participant's attainment of normal retirement age.

Subtitle C: Minimum-Benefit Pension Plan System - Requires any employer engaged in commerce or in any industry or activity affecting commerce to maintain a minimum-benefit pension plan. Defines "minimum-benefit pension plan" as a tax-deferred compensation plan or a tax-exempt trust: (1) in which all of an employers' employees may participate; (2) to which, in the case of an individual account plan, the employer contributes at least four percent of the lesser of the amount of the participant's compensation for the plan year or the maximum amount of earnings considered wages for purposes of title II (Old Age, Survivors and Disability Insurance) of the Social Security Act as of the beginning of the plan year; (3) under which, in the case of a defined benefit plan, each participant's accrued benefit derived from employer contributions equals at least the amount of the accrued benefit which would have been derived from employee contributions if the participant made mandatory contributions for each plan year equal to four percent of the lesser of the amount of the participant's compensation for the plan year or the maximum amount of earnings considered wages for OASDI purposes; and (4) a participant in which has a nonforfeitable right to 100 percent of his accrued benefit derived from employer contributions.

Subtitle D: Special Master and Prototype Plans - Provides for the establishment of a new type of master or prototype employee pension benefit plan which has been approved by the Secretary of Labor and the assets of which are controlled by one or more master sponsors, who may be registered investment advisors, banks, insurance companies, or savings and loan associations. Relieves an employer who establishes such a plan of specified administrative requirements of ERISA.

Title II: Amendments to the Internal Revenue Code of 1954 - Subtitle A: Vesting; Benefit Accrual; Reciprocal Agreements - Amends the Internal Revenue Code to make conforming changes in accordance with the vesting, benefit accrual, and reciprocal agreement provisions of this Act.

Subtitle B: Joint and Survivor Annuity Requirement - Makes conforming changes in accordance with the survivors' benefit provisions of this Act.

Subtitle C: Amendment Relating to Minimum-Benefit Pension Plan System - Imposes upon any employer who fails to make required contributions to a minimum-benefit pension plan an excise tax equal to 110 percent of the difference between such required amount and the amount actually contributed.

Subtitle D: Integration of Pension Benefits with Social Security Benefits - Qualifies as a tax-deferred compensation plan a plan under which contributions or benefits based on remuneration excluded from "wages" for purposes of the Federal Insurance Contributions Act differ from those based on included remuneration and which meet specified benefit requirements.

Subtitle E: Income Tax Credit for Employer Contributions to Pension Plans - Allows a tax credit for employer contributions to a tax-deferred compensation plan equal to: (1) six percent of the amount of the deduction allowed for such contributions; or (2) 46 percent of the amount of the deduction allowed for such contributions or contributions to qualified foreign plans, if the employer elects not to deduct such amounts.