Comprehensive Private Pension Security Act

Summary

Comprehensive Private Pension Security Act - Title I: Findings; Purpose - States that it is the purpose of this Act to strengthen and improve the private retirement system by: (1) establishing minimum standards for participation in and vesting of benefits under pension and profit-sharing retirement plans, (2) establishing minimum funding standards; (3) requiring termination insurance and (4) by allowing Federal tax incentives to individuals for personal retirement savings. Title II: Office of Pension Plan Administration - Establishes within the Internal Revenue Service the Office of Pension Plan Administration and specifies that the Office shall carry out all functions of the IRS with respect to pension, profit-sharing and deferred compensation plans. Transfers to this Office those functions of the Secretary of the Treasury which are carried out through the Pension Trust Branch of the IRS. Title III: Amendments to the Internal Revenue Code - Sets those requirements for eligibility of a particular plan. Permits a worker to receive a nonforfeitable right to at least 25 percent of the pension benefits that have accumulated after participation in a plan for five years. Allows full vesting after 20 years of employment with a 5 percent increase every year after the fifth year of employment. Permits this section to vest retroactively after the enactment of this Act to permit persons 45 years of age or older to receive credit for service prior to the State of enactment. Prohibits any vesting plans calculated upon an employees age. Specifies minimum funding requirements for all plans. Requires pension obligations attributable to current service liabilities to be funded annually and that past service liabilities be funded within 30 years. Authorizes the Secretary of the Treasury to certify which actuaries can be used to evaluate the operation of various plans. Sets forth minimum standards of compliance for a plan which terminates before service disabilities are liquidated. Allows an employee a tax-free transfer of vested pension rights from job to job upon changes of employment if the employee and employer consent to such transfer. Enforces the vesting, funding and reinsurance provisions of this Act by denying favorable tax treatment to any plan that fails to comply with these requirements. Allows pension plans, three years from the date of enactment of this Act to comply with the minimum standards for vesting and funding. Requires that the termination standards be compiled with, within one year of enactment of this Act. Allows a tax credit against the income tax imposed on retirement plans for amounts paid during the taxable year by an individual. Limits the credit allowable equal to the lesser of $375 or 25 percent of any employee contribution to a qualified retirement plan. Outlines those minimum standards for individual retirement accounts to qualify under this Act and the manner in which distribution from such accounts should be treated. Title IV: Pension Insurance - Creates a Pension Guarantee Corporation to insure the unfunded vested liabilities of all pension, profit-sharing, stock bonus and bond purchase plans which otherwise qualify under the Internal Revenue Code. Specifies the membership, by laws and duties of the Corporation.

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Timeline

1. 13 March 1973

   Introduced

   Referred to Senate Committee on Finance.

   Source: IntroReferral

2. 13 March 1973

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 21 August 1973

   Reported

   Reported to Senate from the Committee on Finance with amendment, S. Rept. 93-383.

   Source: Committee

4. 21 August 1973

   Reported

   Reported to Senate from the Committee on Finance with amendment, S. Rept. 93-383.

   Source: Committee

5. 19 September 1973

   Floor

   Measure indefinitely postponed in Senate.

   Source: Floor

Votes

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Versions

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Documents

2 official files

• Indefinitely postponed in Senate

  summary · EN · 19 September 1973

  Open at official source

• Introduced in Senate

  summary · EN · 13 March 1973

  Open at official source

Sponsors

• Sen. Bentsen, Lloyd M. [D-TX] · D · Sponsor
• · ssfi00 · Standing

Related records

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