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June 24, 2002
TO: PENSION COMMITTEE No. 23-02
PENSION OPERATIONS ADVISORY COMMITTEE No. 40-02
RE: HOUSE PASSES BILL TO MAKE PERMANENT THE PENSION PROVISIONS OF
EGTRRA
On June 21, the House of Representatives passed H.R. 4931, the “Retirement Savings
Security Act of 2002” by a vote of 308 to 70. The bill, sponsored by Representatives Rob
Portman and Ben Cardin, would make permanent the pension and IRA provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) — specifically, subtitles
(A) through (F) of Title VI of EGTRRA. As you may recall, the House of Representatives in
April of this year had passed a bill to make EGTRRA’s changes permanent.1
A democratic substitute amendment to H.R. 4931 was defeated by a vote of 204 to 182.
While the substitute amendment generally would have repealed the “sunset” provision with
regard to EGTRRA’s retirement savings provisions, it would have also imposed substantive
limitations on several of the provisions (such as the increase in the Code section 401(a)(17)
compensation limit and the top-heavy rule modifications), as well as limitations relating to
executive compensation arrangements.
The text of the bill and the Joint Committee on Taxation’s description of the bill are
attached.
Thomas T. Kim
Associate Counsel
Attachment (in .pdf format)
1 See Institute Memorandum to Pension Committee No. 14-02, Pension Operations Advisory Committee No. 27-02,
and 529 Plan Advisory Committee No. 19-02, dated April 23, 2002.