Pension Equity Act of 1982

Summary

Pension Equity Act of 1982 - Amends the Internal Revenue Code to limit to $90,000 the amount of annual benefits payable under a defined benefit pension plan. Limits to $30,000 the amount of annual benefits payable under a defined contribution plan. Repeals the cost-of-living adjustments for benefits payable under such plans. Limits the aggregate benefit to an individual covered by both such plans to 100 percent of the otherwise applicable limits. Reduces the limitation on the annual benefit of a defined benefit plan beginning before age 65 to the actuarial equivalent of an annual benefit of $90,000 beginning at age 65. Requires that post-retirement medical benefits be taken into account in determining whether benefits exceed the $90,000 annual limit. Allows individuals currently receiving benefits higher than the limits set by this Act to continue to receive such higher benefits. Treats loans made (directly or indirectly) from a qualified employer plan to a key employee as a distribution under such plan. Treats an assignment or pledge of such an interest in such a plan by a key employee as a distribution under such plan. Defines a "key employee" as any participant who is: (1) an officer; (2) a five percent owner of the employer; (3) among the highest paid 15 percent of all employees of the employer; (4) a self-employed individual; (5) a beneficiary of an individual retirement account or annuity; (6) an employee electing cash or a deferred arrangment; or (7) the beneficiary of an annuity contract purchased by a tax-exempt organization. Sets forth rules requiring nondiscriminatory coordination of defined contribution plans and defined benefit plans with OASDI contributions and benefits and State retirement systems. Increases from $15,000 to $30,000 the tax deduction allowed for contributions made to a self-employed retirement plan. Extends certain vesting and participation rules which apply to plans covering owner-employees to plans covering self-employed individuals. Extends rules applicable to plans for self-employed individuals to plans of personal service corporations. Increases in gross income certain benefits provided to key employees under certain discriminatory fringe benefit plans. Classifies a statutory fringe benefit plan as discriminatory unless: (1) such plan benefits 70 percent or more of all employees; (2) at least 85 percent of all participating employees are not key employees; (3) the Secretary of the Treasury finds that the plan does not discriminate in favor of key employees. Defines a "statutory fringe benefit plan" as any plan of an employer which: (1) involves the purchase of group term life insurance for employees; (2) is an accident or health plan; (3) is a qualified group legal service plan; (4) is a plan for furnishing qualified transportion; (5) is an educational assistance program; or (6) is a dependent care assistance program. Limits to $500,000 the estate tax exclusion for amounts payable under qualified pension, stock bonus or profit-sharing plans, retirement annuity contracts and individual retirement accounts.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in House

  summary · EN · 19 May 1982

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.