Moving Ahead for Progress in the 21st Century Act (P.L. 112-141)
Moving Ahead for Progress in the 21st Century Act (P.L. 112-141)
- Jurisdictions
- LanguageEnglish
H.R. 4348, Enrolled Bill
One Hundred Twelfth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday, the
third day of January, two thousand and twelve
An Act
To authorize funds for Federal-aid highways, highway safety programs,
and transit programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) SHORT TITLE . -- This Act may be cited as the "Moving Ahead for Progress in the 21st Century Act" or the "MAP-21".
SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.
Section 143 of title 23, United States Code, is amended --
(A) by striking paragraph (2) and inserting the following:
"(2) FUNDING. --
"(A) IN GENERAL. -- From administrative funds made available under section 104(a), the Secretary shall deduct such sums as are necessary, not to exceed $10,000,000 for each of fiscal years 2013 and 2014, to carry out this section.
"(B) ALLOCATION OF FUNDS. -- Funds made available to carry out this section may be allocated to the Internal Revenue Service and the States at the discretion of the Secretary, except that of funds so made available for each fiscal year, $2,000,000 shall be available only to carry out intergovernmental enforcement efforts, including research and training."; and
(B) in paragraph (8) by striking "section 104(b)(3)" and inserting "section 104(b)(2)"; and
(2) in subsection (c)(3) by striking "for each of fiscal years 2005 through 2009," and inserting "for each fiscal year,".
DIVISION D -- FINANCE
SEC. 40001. SHORT TITLE.
This division may be cited as the "Highway Investment, Job Creation, and Economic Growth Act of 2012".
TITLE I -- EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND RELATED TAXES
SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.
(a) HIGHWAY TRUST FUND. -- Section 9503 of the Internal Revenue Code of 1986 is amended --
(1) by striking "July 1, 2012" in subsections (b)(6)(B), (c)(1), and (e)(3) and inserting "October 1, 2014", and
(2) by striking "Surface Transportation Extension Act of 2012" in subsections (c)(1) and (e)(3) and inserting "MAP-21".
(b) SPORT FISH RESTORATION AND BOATING T RUST FUND . -- Section 9504 of the Internal Revenue Code of 1986 is amended --
(1) by striking "Surface Transportation Extension Act of 2012" each place it appears in subsection (b)(2) and inserting "MAP-21", and
(2) by striking "July 1, 2012" in subsection (d)(2) and inserting "October 1, 2014".
(c) LEAKING UNDERGROUND STORAGE TANK T RUST FUND . -- Paragraph (2) of section 9508(e) of the Internal Revenue Code of 1986 is amended by striking "July 1, 2012" and inserting "October 1, 2014".
(d) EFFECTIVE DATE. -- The amendments made by this section shall take effect on July 1, 2012.
SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.
(a) IN GENERAL. --
(1) Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking "June 30, 2012" and inserting "September 30, 2016":
(A) Section 4041(a)(1)(C)(iii)(I).
(B) Section 4041(m)(1)(B).
(C) Section 4081(d)(1).
(2) Each of the following provisions of such Code is amended by striking "July 1, 2012" and inserting "October 1, 2016":
(A) Section 4041(m)(1)(A).
(B) Section 4051(c).
(C) Section 4071(d).
(D) Section 4081(d)(3).
(1) IN GENERAL. -- Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking "2013" each place it appears and inserting "2017":
(A) Section 4481(f).
(B) Section 4482(d).
(2) EXTENSION AND TECHNICAL CORRECTION. --
(A) IN GENERAL. -- Paragraph (4) of section 4482(c) of such Code is amended to read as follows:
"(4) TAXABLE PERIOD. -- The term 'taxable period' means any year beginning before July 1, 2017, and the period which begins on July 1, 2017, and ends at the close of September 30, 2017.".
(B) EFFECTIVE DATE. -- The amendment made by this paragraph shall take effect as if included in the amendments made by section 142 of the Surface Transportation Extension Act of 2011, Part II.
(1) by striking "July 1, 2012" each place it appears and inserting "October 1, 2016",
(2) by striking "December 31, 2012" each place it appears and inserting "March 31, 2017", and
(3) by striking "October 1, 2012" and inserting "January 1, 2017".
(d) EXTENSION OF CERTAIN EXEMPTIONS. --
(1) Section 4221(a) of the Internal Revenue Code of 1986 is amended by striking "July 1, 2012" and inserting "October 1, 2016".
(2) Section 4483(i) of such Code is amended by striking "July 1, 2012" and inserting "October 1, 2017".
(e) EXTENSION OF TRANSFERS OF CERTAIN TAXES. --
(1) IN GENERAL. -- Section 9503 of the Internal Revenue Code of 1986 is amended --
(A) in subsection (b) --
(i) by striking "July 1, 2012" each place it appears in paragraphs (1) and (2) and inserting "October 1, 2016",
(ii) by striking "JULY 1, 2012" in the heading of paragraph (2) and inserting "OCTOBER 1, 2016",
(iii) by striking "June 30, 2012" in paragraph (2) and inserting "September 30, 2016", and
(iv) by striking "April 1, 2013" in paragraph (2) and inserting "July 1, 2017", and
(B) in subsection (c)(2), by striking "April 1, 2013" and inserting "July 1, 2017".
(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX TRANSFERS. --
(A) IN GENERAL. -- Paragraphs (3)(A)(i) and (4)(A) of section 9503(c) of such Code are each amended by striking "July 1, 2012" and inserting "October 1, 2016".
(B) CONFORMING AMENDMENTS TO LAND AND WATER CONSERVATION FUND. -- Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is amended --
(i) by striking "July 1, 2013" each place it appears and inserting "October 1, 2017", and
(ii) by striking "July 1, 2012" and inserting "October 1, 2016".
Subtitle A -- Leaking Underground Storage Tank Trust Fund
SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK TRUST FUND TO HIGHWAY TRUST FUND.
(a) IN GENERAL. -- Subsection (c) of section 9508 of the Internal Revenue Code of 1986 is amended --
(1) by striking "Amounts" and inserting:
"(1) IN GENERAL. -- Except as provided in paragraph (2), amounts", and
(2) by adding at the end the following new paragraph:
"(2) TRANSFER TO HIGHWAY TRUST FUND. -- Out of amounts in the Leaking Underground Storage Tank Trust Fund there is hereby appropriated $2,400,000,000 to be transferred under section 9503(f)(3) to the Highway Account (as defined in section 9503(e)(5)(B)) in the Highway Trust Fund.".
(b) TRANSFER TO HIGHWAY TRUST FUND. --
(1) I N GENERAL. -- Subsection (f) of section 9503 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (2) the following new paragraph:
"(3) INCREASE IN FUND BALANCE. -- There is hereby transferred to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund amounts appropriated from the Leaking Underground Storage Tank Trust Fund under section 9508(c)(2).".
(2) CONFORMING AMENDMENTS. -- Paragraph (4) of section 9503(f) of such Code is amended --
(A) by inserting "or transferred" after "appropriated", and
(B) by striking "APPROPRIATED" in the heading thereof.
PART I -- PENSION FUNDING STABILIZATION
SEC. 40211. PENSION FUNDING STABILIZATION.
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986. --
(1) IN GENERAL. -- Subparagraph (C) of section 430(h)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:
"(I) IN GENERAL. -- If a segment rate described in clause (i), (ii), or (iii) with respect to any applicable month (determined without regard to this clause) is less than the applicable minimum percentage, or more than the applicable maximum percentage, of the average of the segment rates described in such clause for years in the 25-year period ending with September 30 of the calendar year preceding the calendar year in which the plan year begins, then the segment rate described in such clause with respect to the applicable month shall be equal to the applicable minimum percentage or the applicable maximum percentage of such average, whichever is closest. The Secretary shall determine such average on an annual basis and may prescribe equivalent rates for years in any such 25-year period for which the rates described in any such clause are not available.
"(II) APPLICABLE MINIMUM PERCENTAGE; APPLICABLE MAXIMUM PERCENTAGE. -- For purposes of subclause (I), the applicable minimum percentage and the applicable maximum percentage for a plan year beginning in a calendar year shall be determined in accordance with the following table:
"If the calendar minimum percentage maximum percentage
year is: is: is:
____________________________________________________________________
2012 90% 110%
2013 85% 115%
2014 80% 120%
2015 75% 125%
After 2015 70% 130%."
(A) Paragraph (6) of section 404(o) of such Code is amended by inserting "(determined by not taking into account any adjustment under clause (iv) of subsection (h)(2)(C) thereof)" before the period.
(B) Subparagraph (F) of section 430(h)(2) of such Code is amended by inserting "and the averages determined under subparagraph (C)(iv)" after "subparagraph (C)".
(C) Subparagraphs (C) and (D) of section 417(e)(3) of such Code are each amended by striking "section 430(h)(2)(C)" and inserting "section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)".
(D) Section 420 of such Code is amended by adding at the end the following new subsection:
(b) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. --
(1) I N GENERAL. -- Subparagraph (C) of section 303(h)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)(2)) is amended by adding at the end the following new clause:
"(I) IN GENERAL. -- If a segment rate described in clause (i), (ii), or (iii) with respect to any applicable month (determined without regard to this clause) is less than the applicable minimum percentage, or more than the applicable maximum percentage, of the average of the segment rates described in such clause for years in the 25-year period ending with September 30 of the calendar year preceding the calendar year in which the plan year begins, then the segment rate described in such clause with respect to the applicable month shall be equal to the applicable minimum percentage or the applicable maximum percentage of such average, whichever is closest. The Secretary of the Treasury shall determine such average on an annual basis and may prescribe equivalent rates for years in any such 25-year period for which the rates described in any such clause are not available.
"(II) APPLICABLE MINIMUM PERCENTAGE; APPLICABLE MAXIMUM PERCENTAGE. -- For purposes of subclause (I), the applicable minimum percentage and the applicable maximum percentage for a plan year beginning in a calendar year shall be determined in accordance with the following table:
"If the calendar minimum percentage maximum percentage
year is: is: is:
____________________________________________________________________
2012 90% 110%
2013 85% 115%
2014 80% 120%
2015 75% 125%
After 2015 70% 130%."
(A) I N GENERAL. -- Paragraph (2) of section 101(f) of such Act (29 U.S.C. 1021(f)) is amended by adding at the end the following new subparagraph:
"(D) EFFECT OF SEGMENT RATE STABILIZATION ON PLAN FUNDING . --
"(i) IN GENERAL. -- In the case of a single-employer plan for an applicable plan year, each notice under paragraph (1) shall include --
"(I) a statement that the MAP-21 modified the method for determining the interest rates used to determine the actuarial value of benefits earned under the plan, providing for a 25-year average of interest rates to be taken into account in addition to a 2-year average,
"(II) a statement that, as a result of the MAP-21, the plan sponsor may contribute less money to the plan when interest rates are at historical lows, and
"(III) a table which shows (determined both with and without regard to section 303(h)(2)(C)(iv)) the funding target attainment percentage (as defined in section 303(d)(2)), the funding shortfall (as defined in section 303(c)(4)), and the minimum required contribution (as determined under section 303), for the applicable plan year and each of the 2 preceding plan years.
"(ii) APPLICABLE PLAN YEAR. -- For purposes of this subparagraph, the term 'applicable plan year' means any plan year beginning after December 31, 2011, and before January 1, 2015, for which --
"(I) the funding target (as defined in section 303(d)(2)) is less than 95 percent of such funding target determined without regard to section 303(h)(2)(C)(iv),
"(II) the plan has a funding shortfall (as defined in section 303(c)(4) and determined without regard to section 303(h)(2)(C)(iv)) greater than $500,000, and
"(III) the plan had 50 or more participants on any day during the preceding plan year. For purposes of any determination under subclause (III), the aggregation rule under the last sentence of section 303(g)(2)(B) shall apply.
"(iii) SPECIAL RULE FOR PLAN YEARS BEGINNING BEFORE 2012. -- In the case of a preceding plan year referred to in clause (i)(III) which begins before January 1, 2012, the information described in such clause shall be provided only without regard to section 303(h)(2)(C)(iv).".
(B) MODEL NOTICE. -- The Secretary of Labor shall modify the model notice required to be published under section 501(c) of the Pension Protection Act of 2006 to prominently include the information described in section 101(f)(2)(D) of the Employee Retirement Income Security Act of 1974, as added by this paragraph.
(3) CONFORMING AMENDMENTS. --
(A) Subparagraph (F) of section 303(h)(2) of such Act (29 U.S.C. 1083(h)(2)) is amended by inserting "and the averages determined under subparagraph (C)(iv)" after "subparagraph (C)".
(B) Clauses (ii) and (iii) of section 205(g)(3)(B) of such Act (29 U.S.C. 1055(g)(3)(B)) are each amended by striking "section 303(h)(2)(C)" and inserting "section 303(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)".
(C) Clause (iv) of section 4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is amended by striking "section 303(h)(2)(C)" and inserting "section 303(h)(2)(C) (notwithstanding any regulations issued by the corporation, determined by not taking into account any adjustment under clause (iv) thereof)".
(D) Section 4010(d) of such Act (29 U.S.C. 1310(d)) is amended by adding at the end the following:
"(3) PENSION STABILIZATION DISREGARDED. -- For purposes of this section, the segment rates used in determining the funding target and funding target attainment percentage shall be determined by not taking into account any adjustment under section 302(h)((2)(C)(iv).".
(c) EFFECTIVE DATE. --
(1) IN GENERAL. -- The amendments made by this section shall apply with respect to plan years beginning after December 31, 2011.
(2) RULES WITH RESPECT TO ELECTIONS. --
(A) ADJUSTED FUNDING TARGET ATTAINMENT PERCENT-AGE. -- A plan sponsor may elect not to have the amendments made by this section apply to any plan year beginning before January 1, 2013, either (as specified in the election) --
(i) for all purposes for which such amendments apply, or
(ii) solely for purposes of determining the adjusted funding target attainment percentage under sections 436 of the Internal Revenue Code of 1986 and 206(g) of the Employee Retirement Income Security Act of 1974 for such plan year.
PART IV -- TRANSFERS OF EXCESS PENSION ASSETS
SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS TO RETIREE HEALTH ACCOUNTS.
(a) IN GENERAL. -- Paragraph (5) of section 420(b) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2013" and inserting "December 31, 2021".
(b) CONFORMING ERISA AMENDMENTS. --
(1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the Employee Retirement Income Security Act of 1974 are each amended by striking "Pension Protection Act of 2006" and inserting "MAP-21".
(2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) is amended by striking "January 1, 2014" and inserting "January 1, 2022".
(c) EFFECTIVE DATE. -- The amendments made by this Act shall take effect on the date of the enactment of this Act.
SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP TERM LIFE INSURANCE ACCOUNTS.
(a) IN GENERAL. -- Subsection (a) of section 420 of the Internal Revenue Code of 1986 is amended by inserting ", or an applicable life insurance account," after "health benefits account".
(b) APPLICABLE LIFE INSURANCE ACCOUNT DEFINED. --
(1) IN GENERAL. -- Subsection (e) of section 420 of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:
"(4) APPLICABLE LIFE INSURANCE ACCOUNT. -- The term 'applicable life insurance account' means a separate account established and maintained for amounts transferred under this section for qualified current retiree liabilities based on premiums for applicable life insurance benefits.".
(2) APPLICABLE LIFE INSURANCE BENEFITS DEFINED. -- Paragraph (1) of section 420(e) of such Code is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:
"(D) APPLICABLE LIFE INSURANCE BENEFITS. -- The term 'applicable life insurance benefits' means group-term life insurance coverage provided to retired employees who, immediately before the qualified transfer, are entitled to receive such coverage by reason of retirement and who are entitled to pension benefits under the plan, but only to the extent that such coverage is provided under a policy for retired employees and the cost of such coverage is excludable from the retired employee's gross income under section 79.".
(3) COLLECTIVELY BARGAINED LIFE INSURANCE BENEFITS DEFINED . --
(A) IN GENERAL. -- Paragraph (6) of section 420(f) of such Code is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:
"(D) COLLECTIVELY BARGAINED LIFE INSURANCE BENEFITS. -- The term 'collectively bargained life insurance benefits' means, with respect to any collectively bargained transfer --
"(i) applicable life insurance benefits which are provided to retired employees who, immediately before the transfer, are entitled to receive such benefits by reason of retirement, and
"(ii) if specified by the provisions of the collective bargaining agreement governing the transfer, applicable life insurance benefits which will be provided at retirement to employees who are not retired employees at the time of the transfer.".
(B) CONFORMING AMENDMENTS. --
(i) Clause (i) of section 420(e)(1)(C) of such Code is amended by striking "upon retirement" and inserting "by reason of retirement".
(ii) Subparagraph (C) of section 420(f)(6) of such Code is amended --
(I) by striking "which are provided to" in the matter preceding clause (i),
(II) by inserting "which are provided to" before "retired employees" in clause (i),
(III) by striking "upon retirement" in clause (i) and inserting "by reason of retirement", and
(IV) by striking "active employees who, following their retirement," and inserting "which will be provided at retirement to employees who are not retired employees at the time of the transfer and who".
(1) IN GENERAL. -- Subparagraph (A) of section 420(c)(3) of the Internal Revenue Code of 1986 is amended by inserting ", and each group-term life insurance plan under which applicable life insurance benefits are provided," after "health benefits are provided".
(2) CONFORMING AMENDMENTS. --
(A) Subparagraph (B) of section 420(c)(3) of such Code is amended --
(i) by redesignating subclauses (I) and (II) of clause (i) as subclauses (II) and (III) of such clause, respectively, and by inserting before subclause (II) of such clause, as so redesignated, the following new subclause:
"(I) separately with respect to applicable health benefits and applicable life insurance benefits,", and
(ii) by striking "for applicable health benefits" and all that follows in clause (ii) and inserting "was provided during such taxable year for the benefits with respect to which the determination under clause (i) is made.".
(B) Subparagraph (C) of section 420(c)(3) of such Code is amended --
(i) by inserting "for applicable health benefits" after "applied separately", and
(ii) by inserting ", and separately for applicable life insurance benefits with respect to individuals age 65 or older at any time during the taxable year and with respect to individuals under age 65 during the taxable year" before the period.
(C) Subparagraph (E) of section 420(c)(3) of such Code is amended --
(i) in clause (i), by inserting "or retiree life insurance coverage, as the case may be," after "retiree health coverage",
(ii) in clause (ii), by inserting "FOR RETIREE HEALTH COVERAGE" after "COST REDUCTIONS" in the heading thereof, and
(iii) in clause (ii)(II), by inserting "with respect to applicable health benefits" after "liabilities of the employer".
(D) Paragraph (2) of section 420(f) of such Code is amended by striking "collectively bargained retiree health liabilities" each place it occurs and inserting "collectively bargained retiree liabilities".
(E) Clause (i) of section 420(f)(2)(D) of such Code is amended --
(i) by inserting ", and each group-term life insurance plan or arrangement under which applicable life insurance benefits are provided," in subclause (I) after "applicable health benefits are provided",
(ii) by inserting "or applicable life insurance benefits, as the case may be," in subclause (I) after "provides applicable health benefits",
(iii) by striking "group health" in subclause (II), and
(iv) by inserting "or collectively bargained life insurance benefits" in subclause (II) after "collectively bargained health benefits".
(F) Clause (ii) of section 420(f)(2)(D) of such Code is amended --
(i) by inserting "with respect to applicable health benefits or applicable life insurance benefits" after "requirements of subsection (c)(3)", and
(ii) by adding at the end the following: "Such election may be made separately with respect to applicable health benefits and applicable life insurance benefits. In the case of an election with respect to applicable life insurance benefits, the first sentence of this clause shall be applied as if subsection (c)(3) as in effect before the amendments made by such Act applied to such benefits.".
(G) Clause (iii) of section 420(f)(2)(D) of such Code is amended --
(i) by striking "retiree" each place it occurs, and
(ii) by inserting ", collectively bargained life insurance benefits, or both, as the case may be," after "health benefits" each place it occurs.
"(f) EXCEPTION FOR LIFE INSURANCE PURCHASED IN CONNECTION WITH QUALIFIED TRANSFER OF EXCESS PENSION ASSETS. -- Sub-section (b)(3) and section 72(m)(3) shall not apply in the case of any cost paid (whether directly or indirectly) with assets held in an applicable life insurance account (as defined in section 420(e)(4)) under a defined benefit plan.".
(e) CONFORMING AMENDMENTS. --
(1) Section 420 of the Internal Revenue Code of 1986 is amended by striking "qualified current retiree health liabilities" each place it appears and inserting "qualified current retiree liabilities".
(2) Section 420 of such Code is amended by inserting ", or an applicable life insurance account," after "a health benefits account" each place it appears in subsection (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection (c)(1), subsection (d)(1)(A), and subsection (f)(2)(E)(ii).
(3) Section 420(b) of such Code is amended --
(A) by adding the following at the end of paragraph (2)(A): "If there is a transfer from a defined benefit plan to both a health benefits account and an applicable life insurance account during any taxable year, such transfers shall be treated as 1 transfer for purposes of this paragraph.", and
(B) by inserting "to an account" after "may be transferred" in paragraph (3).
(4) The heading for section 420(c)(1)(B) of such Code is amended by inserting "OR LIFE INSURANCE" after "HEALTH BENEFITS".
(5) Paragraph (1) of section 420(e) of such Code is amended --
(A) by inserting "and applicable life insurance benefits" in subparagraph (A) after "applicable health benefits", and
(B) by striking "HEALTH" in the heading thereof.
(6) Subparagraph (B) of section 420(e)(1) of such Code is amended --
(A) in the matter preceding clause (i), by inserting "(determined separately for applicable health benefits and applicable life insurance benefits)" after "shall be reduced by the amount",
(B) in clause (i), by inserting "or applicable life insurance accounts" after "health benefit accounts", and
(C) in clause (i), by striking "qualified current retiree health liability" and inserting "qualified current retiree liability".
(7) The heading for subsection (f) of section 420 of such Code is amended by striking "HEALTH" each place it occurs.
(8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code is amended by inserting "or applicable life insurance account, as the case may be," after "health benefits account".
(9) Subclause (III) of section 420(f)(2)(E)(i) of such Code is amended --
(A) by inserting "defined benefit" before "plan maintained by an employer", and
(B) by inserting "health" before "benefit plans maintained by the employer".
(10) Paragraphs (4) and (6) of section 420(f) of such Code are each amended by striking "collectively bargained retiree health liabilities" each place it occurs and inserting "collectively bargained retiree liabilities".
(11) Subparagraph (A) of section 420(f)(6) of such Code is amended --
(A) in clauses (i) and (ii), by inserting ", in the case of a transfer to a health benefits account," before "his covered spouse and dependents", and
(B) in clause (ii), by striking "health plan" and inserting "plan".
(12) Subparagraph (B) of section 420(f)(6) of such Code is amended --
(A) in clause (i), by inserting ", and collectively bargained life insurance benefits," after "collectively bargained health benefits",
(B) in clause (ii) --
(i) by adding at the end the following: "The preceding sentence shall be applied separately for collectively bargained health benefits and collectively bargained life insurance benefits.", and
(ii) by inserting ", applicable life insurance accounts," after "health benefit accounts", and
(C) by striking "HEALTH " in the heading thereof.
(13) Subparagraph (E) of section 420(f)(6) of such Code, as redesignated by subsection (b), is amended --
(A) by striking "bargained health" and inserting "bargained",
(B) by inserting ", or a group-term life insurance plan or arrangement for retired employees," after "dependents", and
(C) by striking "HEALTH " in the heading thereof.
(14) Section 101(e) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)) is amended --
(A) in paragraphs (1) and (2), by inserting "or applicable life insurance account" after "health benefits account" each place it appears, and
(B) in paragraph (1), by inserting "or applicable life insurance benefit liabilities" after "health benefits liabilities".
(g) REPEAL OF DEADWOOD. --
(1) Subparagraph (A) of section 420(b)(1) of the Internal Revenue Code of 1986 is amended by striking "in a taxable year beginning after December 31, 1990".
(2) Subsection (b) of section 420 of such Code is amended by striking paragraph (4) and by redesignating paragraph (5), as amended by this Act, as paragraph (4).
(3) Paragraph (2) of section 420(b) of such Code, as amended by this section, is amended --
(A) by striking subparagraph (B), and
(B) by striking "PER YEAR. -- " and all that follows through "No more than" and inserting "PER YEAR . -- No more than".
(4) Paragraph (2) of section 420(c) of such Code is amended --
(A) by striking subparagraph (B),
(B) by moving subparagraph (A) two ems to the left, and
(C) by striking "BEFORE TRANSFER. -- " and all that follows through "The requirements of this paragraph" and inserting the following: "BEFORE TRANSFER. -- The requirements of this paragraph".
(5) Paragraph (2) of section 420(d) of such Code is amended by striking "after December 31, 1990".
(h) EFFECTIVE DATE . --
(1) IN GENERAL. -- The amendments made by this section shall apply to transfers made after the date of the enactment of this Act.
(2) CONFORMING AMENDMENTS RELATING TO PENSION PROTECTION ACT. -- The amendments made by subsections (b)(3)(B) and (f) shall take effect as if included in the amendments made by section 841(a) of the Pension Protection Act of 2006.
SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.
Subsection (f) of section 9503 of the Internal Revenue Code of 1986, as amended by this Act, is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:
"(A) the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund --
"(i) for fiscal year 2013, $6,200,000,000, and
"(ii) for fiscal year 2014, $10,400,000,000, and
"(B) the Mass Transit Account in the Highway Trust Fund, for fiscal year 2014, $2,200,000,000.".
DIVISION F - MISCELLANEOUS
TITLE I -- REAUTHORIZATION OF CERTAIN PROGRAMS
* * *
Subtitle B -- Payment in Lieu of Taxes Program
SEC. 100111. PAYMENTS IN LIEU OF TAXES.
Section 6906 of title 31, United States Code, is amended by striking "2012" and inserting "2013".
Subtitle C -- Offsets
SEC. 100121. PHASED RETIREMENT AUTHORITY.
(a) CSRS. -- Chapter 83 of title 5, United States Code, is amended --
(1) in section 8331 --
(A) in paragraph (30) by striking "and" at the end;
(B) in paragraph (31) by striking the period at the end and inserting "; and"; and
(C) by adding at the end the following:
"(32) 'Director' means the Director of the Office of Personnel Management.";
(2) by inserting after section 8336 the following:
"(a) For the purposes of this section --
"(1) the term 'composite retirement annuity' means the annuity computed when a phased retiree attains full retirement status;
"(2) the term 'full retirement status' means that a phased retiree has ceased employment and is entitled, upon application, to a composite retirement annuity;
"(3) the term 'phased employment' means the less-than-full-time employment of a phased retiree;
"(4) the term 'phased retiree' means a retirement-eligible employee who --
"(A) makes an election under subsection (b); and
"(B) has not entered full retirement status;
"(5) the term 'phased retirement annuity' means the annuity payable under this section before full retirement;
"(6) the term 'phased retirement percentage' means the percentage which, when added to the working percentage for a phased retiree, produces a sum of 100 percent;
"(7) the term 'phased retirement period' means the period beginning on the date on which an individual becomes entitled to receive a phased retirement annuity and ending on the date on which the individual dies or separates from phased employment;
"(8) the term 'phased retirement status' means that a phased retiree is concurrently employed in phased employment and eligible to receive a phased retirement annuity;
"(9) the term 'retirement-eligible employee' --
"(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8336; but
"(B) does not include an employee described in section 8335 after the date on which the employee is required to be separated from the service by reason of such section; and
"(10) the term 'working percentage' means the percentage of full-time employment equal to the quotient obtained by dividing --
"(A) the number of hours per pay period to be worked by a phased retiree, as scheduled in accordance with sub-section (b)(2); by
"(B) the number of hours per pay period to be worked by an employee serving in a comparable position on a full-time basis.
"(2)(A) Subject to subparagraph (B), at the time of entering phased retirement status, a phased retiree shall be appointed to a position for which the working percentage is 50 percent.
"(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph (A), which shall be not less than 20 percent and not more than 80 percent.
"(C) The working percentage for a phased retiree may not be changed during the phased retiree's phased retirement period.
"(D)(i) Not less than 20 percent of the hours to be worked by a phased retiree shall consist of mentoring.
"(ii) The Director may, by regulation, provide for exceptions to the requirement under clause (i).
"(iii) Clause (i) shall not apply to a phased retiree serving in the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission.
"(A) may not be employed in more than one position at any time; and
"(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change in the working percentage.
"(4) A retirement-eligible employee may make not more than one election under this subsection during the retirement-eligible employee's lifetime.
"(5) A retirement-eligible employee who makes an election under this subsection may not make an election under section 8343a.
"(c)(1) Except as otherwise provided under this subsection, the phased retirement annuity for a phased retiree is the product obtained by multiplying --
"(B) the phased retirement percentage for the phased retiree.
"(2) A phased retirement annuity shall be paid in addition to the basic pay for the position to which a phased retiree is appointed during phased employment.
"(3) A phased retirement annuity shall be adjusted in accordance with section 8340.
"(4)(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the basis of the computation of any survivor annuity, and shall not be subject to any court order requiring a survivor annuity to be provided to any individual.
"(B) A phased retirement annuity shall be subject to a court order providing for division, allotment, assignment, execution, levy, attachment, garnishment, or other legal process on the same basis as other annuities.
"(5) Any reduction of a phased retirement annuity based on an election under section 8334(d)(2) shall be applied to the phased retirement annuity after computation under paragraph (1).
"(6)(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian service for which retirement deductions were not made or refunded shall be made by a retirement-eligible employee at or before the time the retirement-eligible employee enters phased retirement status. No such deposit may be made, or actuarial adjustment in lieu thereof elected, at the time a phased retiree enters full retirement status.
"(B) Notwithstanding subparagraph (A), if a phased retiree does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to make such deposit as would have been available had the employee not entered phased retirement status and died in service.
"(C) If a phased retiree makes an election for an actuarial annuity reduction under section 8334(d)(2) and dies in service as a phased retiree, the amount of any deposit upon which such actuarial reduction shall have been based shall be deemed to have been fully paid.
"(7) A phased retirement annuity shall commence on the date on which a phased retiree enters phased employment.
"(8) No unused sick leave credit may be used in the computation of the phased retirement annuity.
"(d) All basic pay not in excess of the full-time rate of pay for the position to which a phased retiree is appointed shall be deemed to be basic pay for purposes of section 8334.
"(e) Under such procedures as the Director may prescribe, a phased retiree may elect to enter full retirement status at any time. Upon making such an election, a phased retiree shall be entitled to a composite retirement annuity.
"(f)(1) Except as provided otherwise under this subsection, a composite retirement annuity is a single annuity computed under regulations prescribed by the Director, equal to the sum of --
"(B) the product obtained by multiplying --
"(i) the amount of an annuity computed under section 8339 that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time basis in the position occupied during the phased retirement period and before any reduction for survivor annuity or reduction based on an election under section 8334(d)(2); by
"(ii) the working percentage.
"(3) A composite retirement annuity shall be adjusted in accordance with section 8340, except that subsection (c)(1) of that section shall not apply.
"(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted by dividing the number of hours of unused sick leave by the working percentage.
"(g)(1) Under such procedures and conditions as the Director may provide, and with the concurrence of the head of the employing agency, a phased retiree may elect to terminate phased retirement status and return to a full-time work schedule.
"(2) Upon entering a full-time work schedule based upon an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate.
"(3) After the termination of a phased retirement annuity under this subsection, the individual's rights under this subchapter shall be determined based on the law in effect at the time of any subsequent separation from service. For purposes of this subchapter or chapter 84, at time of the subsequent separation from service, the phased retirement period shall be treated as if it had been a period of part-time employment with the work schedule described in subsection (b)(2).
"(h) For purposes of section 8341 --
"(1) the death of a phased retiree shall be deemed to be the death in service of an employee; and
"(2) the phased retirement period shall be deemed to have been a period of part-time employment with the work schedule described in subsection (b)(2).
"(i) Employment of a phased retiree shall not be deemed to be part-time career employment, as defined in section 3401(2).
"(j) A phased retiree is not eligible to apply for an annuity under section 8337.
"(k) For purposes of section 8341(h)(4), retirement shall be deemed to occur on the date on which a phased retiree enters into full retirement status.
"(l) For purposes of sections 8343 and 8351, and subchapter III of chapter 84, a phased retiree shall be deemed to be an employee.
"(m) A phased retiree is not subject to section 8344.
"(n) For purposes of chapter 87, a phased retiree shall be deemed to be receiving basic pay at the rate of a full-time employee in the position to which the phased retiree is appointed."; and
(3) in the table of sections by inserting after the item relating to section 8336 the following:
(b) FERS. -- Chapter 84 of title 5, United States Code, is amended --
(1) by inserting after section 8412 the following new section:
"(a) For the purposes of this section --
"(1) the term 'composite retirement annuity' means the annuity computed when a phased retiree attains full retirement status;
"(2) the term 'full retirement status' means that a phased retiree has ceased employment and is entitled, upon application, to a composite retirement annuity;
"(3) the term 'phased employment' means the less-than-full-time employment of a phased retiree;
"(4) the term 'phased retiree' means a retirement-eligible employee who --
"(A) makes an election under subsection (b); and
"(B) has not entered full retirement status;
"(5) the term 'phased retirement annuity' means the annuity payable under this section before full retirement;
"(6) the term 'phased retirement percentage' means the percentage which, when added to the working percentage for a phased retiree, produces a sum of 100 percent;
"(7) the term 'phased retirement period' means the period beginning on the date on which an individual becomes entitled to receive a phased retirement annuity and ending on the date on which the individual dies or separates from phased employment;
"(8) the term 'phased retirement status' means that a phased retiree is concurrently employed in phased employment and eligible to receive a phased retirement annuity;
"(9) the term 'retirement-eligible employee' --
"(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8412; and
"(B) does not include --
"(i) an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (d) or (e) of section 8412; but
"(ii) does not include an employee described in section 8425 after the date on which the employee is required to be separated from the service by reason of such section; and
"(A) the number of hours per pay period to be worked by a phased retiree, as scheduled in accordance with sub-section (b)(2); by
"(B) the number of hours per pay period to be worked by an employee serving in a comparable position on a full-time basis.
"(2)(A) Subject to subparagraph (B), at the time of entering phased retirement status, a phased retiree shall be appointed to a position for which the working percentage is 50 percent.
"(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph (A), which shall be not less than 20 percent and not more than 80 percent.
"(C) The working percentage for a phased retiree may not be changed during the phased retiree's phased retirement period.
"(D)(i) Not less than 20 percent of the hours to be worked by a phased retiree shall consist of mentoring.
"(ii) The Director may, by regulation, provide for exceptions to the requirement under clause (i).
"(iii) Clause (i) shall not apply to a phased retiree serving in the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission.
"(A) may not be employed in more than one position at any time; and
"(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change in the working percentage.
"(4) A retirement-eligible employee may make not more than one election under this subsection during the retirement-eligible employee's lifetime.
"(5) A retirement-eligible employee who makes an election under this subsection may not make an election under section 8420a.
"(c)(1) Except as otherwise provided under this subsection, the phased retirement annuity for a phased retiree is the product obtained by multiplying --
"(B) the phased retirement percentage for the phased retiree.
"(2) A phased retirement annuity shall be paid in addition to the basic pay for the position to which a phased retiree is appointed during the phased employment.
"(3) A phased retirement annuity shall be adjusted in accordance with section 8462.
"(4)(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the basis of the computation of any survivor annuity, and shall not be subject to any court order requiring a survivor annuity to be provided to any individual.
"(B) A phased retirement annuity shall be subject to a court order providing for division, allotment, assignment, execution, levy, attachment, garnishment, or other legal process on the same basis as other annuities.
"(5)(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian service for which retirement deductions were not made or refunded, shall be made by a retirement-eligible employee at or before the time the retirement-eligible employee enters phased retirement status. No such deposit may be made, or actuarial adjustment in lieu thereof elected, at the time a phased retiree enters full retirement status.
"(B) Notwithstanding subparagraph (A), if a phased retiree does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to make such deposit as would have been available had the employee not entered phased retirement status and died in service.
"(6) A phased retirement annuity shall commence on the date on which a phased retiree enters phased employment.
"(7) No unused sick leave credit may be used in the computation of the phased retirement annuity.
"(d) All basic pay not in excess of the full-time rate of pay for the position to which a phased retiree is appointed shall be deemed to be basic pay for purposes of sections 8422 and 8423.
"(e) Under such procedures as the Director may prescribe, a phased retiree may elect to enter full retirement status at any time. Upon making such an election, a phased retiree shall be entitled to a composite retirement annuity.
"(f)(1) Except as provided otherwise under this subsection, a composite retirement annuity is a single annuity computed under regulations prescribed by the Director, equal to the sum of --
"(B) the product obtained by multiplying --
"(i) the amount of an annuity computed under section 8412 that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time basis in the position occupied during the phased retirement period and before any adjustment to provide for a survivor annuity; by
"(ii) the working percentage.
"(3) A composite retirement annuity shall be adjusted in accordance with section 8462, except that subsection (c)(1) of that section shall not apply.
"(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted by dividing the number of hours of unused sick leave by the working percentage.
"(g)(1) Under such procedures and conditions as the Director may provide, and with the concurrence of the head of employing agency, a phased retiree may elect to terminate phased retirement status and return to a full-time work schedule.
"(2) Upon entering a full-time work schedule based on an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate.
"(3) After termination of the phased retirement annuity under this subsection, the individual's rights under this chapter shall be determined based on the law in effect at the time of any subsequent separation from service. For purposes of this chapter, at the time of the subsequent separation from service, the phased retirement period shall be treated as if it had been a period of part-time employment with the work schedule described in sub-section (b)(2).
"(h) For purposes of subchapter IV --
"(1) the death of a phased retiree shall be deemed to be the death in service of an employee;
"(2) except for purposes of section 8442(b)(1)(A)(i), the phased retirement period shall be deemed to have been a period of part-time employment with the work schedule described in subsection (b)(2) of this section; and
"(3) for purposes of section 8442(b)(1)(A)(i), the phased retiree shall be deemed to have been at the full-time rate of pay for the position occupied.
"(i) Employment of a phased retiree shall not be deemed to be part-time career employment, as defined in section 3401(2).
"(j) A phased retiree is not eligible to receive an annuity supplement under section 8421.
"(k) For purposes of subchapter III, a phased retiree shall be deemed to be an employee.
"(l) For purposes of section 8445(d), retirement shall be deemed to occur on the date on which a phased retiree enters into full retirement status.
"(m) A phased retiree is not eligible to apply for an annuity under subchapter V.
"(n) A phased retiree is not subject to section 8468.
"(o) For purposes of chapter 87, a phased retiree shall be deemed to be receiving basic pay at the rate of a full-time employee in the position to which the phased retiree is appointed."; and
(2) in the table of sections by inserting after the item relating to section 8412 the following:
(c) EXEMPTION FROM 10-PERCENT ADDITIONAL TAX ON EARLY DISTRIBUTIONS. -- Section 72(t)(2)(A) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of clause (vi), by striking the period at the end of clause (vii) and inserting ", or", and by adding at the end the following:
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.
(a) IN GENERAL. -- Subsection (d) of section 5702 of the Internal Revenue Code of 1986 is amended by adding at the end the following new flush sentence:
"Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.".
(b) EFFECTIVE DATE. -- The amendment made by this section shall apply to articles removed after the date of the enactment of this Act.
- Jurisdictions
- LanguageEnglish
