Description of Possible Committee Amendment to Provisions of H.R. 4845 : Pension-Related Technicals Jcx-12-88

Cover Description of Possible Committee Amendment to Provisions of H.R. 4845 : Pension-Related Technicals Jcx-12-88
Description of Possible Committee Amendment to Provisions of H.R. 4845 : Pension-Related Technicals Jcx-12-88
United States. Congress. Joint Committee On Taxation
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Health care continuation : maximum period . --Under the amendment, if an individual obtains health care continuation rights by virtue of a reduction of hours, and then separates from service within 18 months, his or her health care continuation rights with respect to the separation from service would exist for no more than 18 months (rather than 36 months under present law) from the date of reduction of hours .
B. Amendments Related to the Pension Protection Act 1. Interest rate on employee con
...tributions . --Under the amendment, the rules on attributing income to employee contributions under a defined benefit plan would be modified as follows: (1) employee contributions plus income would not be limited by the employee's accrued benefit under the plan's benefit formula; and (2) the conversion of the employee's contributions . plus income to an annuity would be performed under the plan's interest rate. A transition rule would apply so that a plan amendment to conform to this rule would not be a cutback in an employee's accrued benefit.

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