[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4648 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4648
To amend the Internal Revenue Code of 1986 to provide an exclusion from
gross income for that portion of a governmental pension received by an
individual which does not exceed the maximum benefits payable under
title II of the Social Security Act which could have been excluded from
income for the taxable year.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 1994
Mr. Vento introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide an exclusion from
gross income for that portion of a governmental pension received by an
individual which does not exceed the maximum benefits payable under
title II of the Social Security Act which could have been excluded from
income for the taxable year.
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 ``Public Pension Parity Act of 1994''.
SEC. 2. EXCLUSION FOR CERTAIN PENSIONS AND ANNUITIES UNDER PUBLIC
RETIREMENT SYSTEMS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from income) is amended by redesignating section 136 as section 137 and
by inserting after section 135 the following new section:
``SEC. 136. CERTAIN PENSIONS AND ANNUITIES UNDER PUBLIC RETIREMENT
SYSTEMS.
``(a) General Rule.--Gross income does not include any amount
(otherwise includable in gross income) received by an individual as a
qualified governmental pension.
``(b) Limitations.--
``(1) Dollar limitation.--The aggregate amount excluded
under subsection (a) for the taxable year shall not exceed--
``(A) the maximum excludable social security
benefits of the taxpayer for such year, reduced by
``(B) the social security benefits (within the
meaning of section 86(d)) received by the taxpayer
during such year which were excluded from gross income.
``(2) Service requirement.--Subsection (a) shall not apply
to any qualified governmental pension received by the taxpayer
during the taxable year unless the taxpayer (or the spouse or
former spouse of the taxpayer) performed the service giving
rise to such pension.
``(c) Definitions.--For purposes of this section--
``(1) Qualified governmental pension.--The term `qualified
governmental pension' means any pension or annuity received
under a public retirement system to the extent such pension or
annuity is not attributable to service--
``(A) which constitutes employment for purposes of
chapter 21 (relating to the Federal Insurance
Contributions Act), or
``(B) which is covered by an agreement made
pursuant to section 218 of the Social Security Act.
``(2) Maximum excludable social security benefits.--The
term `maximum excludable social security benefits' means an
amount equal to so much of the applicable maximum benefit
amount for the taxpayer for the taxable year which would be
excluded from gross income if such benefit amount were treated
as social security benefits (within the meaning of section
86(d)) received during the taxable year.
``(3) Applicable maximum benefit amount.--The term
`applicable maximum benefit amount' means--
``(A) in the case of an unmarried individual, the
maximum individual social security benefit,'
``(B) in the case of a joint return, 150 percent of
the maximum individual social security benefit, or
``(C) in the case of a married individual filing a
separate return, 75 percent of the maximum individual
social security benefit.
For purposes of the preceding sentence, marital status shall be
determined under section 7703.
``(4) Maximum individual social security benefit.--
``(A) In general.--The term `maximum individual
social security benefit' means, with respect to any
taxable year, the maximum total amount (as certified by
the Secretary of Health and Human Services to the
Secretary) which could be paid for all months in the
calendar year ending in the taxable year as old-age
insurance benefits under section 202(a) of the Social
Security Act (without regard to any reduction,
deduction, or offset under section 202(k) or section
203 of such Act) to any individual who attained age 65,
and filed application for such benefits, on the first
day of such calendar year.
``(B) Part years.--In the case of an individual who
receives a qualified governmental pension with respect
to a period of less than a full taxable year, the
maximum individual social security benefit for such
individual for such year shall be reduced as provided
in regulations prescribed by the Secretary to properly
correspond to such period.
``(5) Public retirement system.--The term `public
retirement system' means any pension, annuity, retirement, or
similar fund or system established by the United States, a
State, a possession of the United States, any political
subdivision of any of the foregoing, or the District of
Columbia.''
(b) Technical Amendment.--Subparagraph (A) of section 86(b)(2) of
such Code (defining modified adjusted gross income) is amended by
inserting ``136'' before ``911''.
(c) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code (relating to items specifically
excluded from income) is amended by redesignating the item relating to
section 136 as section 137 and by inserting after the item relating to
section 135 the following new item:
``Sec. 136. Certain pensions and
annuities under public
retirement systems.''
(d) Effective Date.--The amendments made by this Act shall apply to
taxable years beginning after the date of the enactment of this Act.
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