2 1 SEC. 2. DEDUCTION FOR CONTRIBUTIONS TO INDIVIDUAL RE 2 3 TIREMENT PLANS. (a) GENERAL RULE.-Paragraph (2) of section 219(c) 4 of the Internal Revenue Code of 1954 (relating to married 5 individuals) is amended to read as follows: 6 "(2) MARRIED INDIVIDUALS. "(A) COMPUTATION OF MAXIMUM DEDUC TION. The maximum deduction under subsection (b)(1) shall be computed separately for each individual who is married (within the meaning of sec tion 143(a)). "(B) COMMUNITY PROPERTY LAWS.-This section shall be applied without regard to any community property laws. "(C) HIGHER COMPENSATION USED.-In the case of a married individual who has no compensation or whose compensation is less than that of the individual's spouse, the maximum deduction under subsection (b)(1) shall be determined as if such individual's compensation were the same as that of such individual's spouse." (b) TREATMENT OF ALIMONY AS COMPENSATION. 23 Paragraph (1) of section 219(c) of such Code (defining com24 pensation) is amended by inserting before the period at the 25 end thereof the following: "and periodic payments includible 26 in gross income under section 71". 3 1 (c) EFFECTIVE DATE.-The amendments made by this 2 section shall apply to taxable years beginning after December 3 31, 1980. 4 SEC. 3. JOINT AND SURVIVOR ANNUITY REQUIREMENTS. 5 6 7 8 9 10 11 (a) AMENDMENTS TO ERISA. (1) Section 205 of the Employee Retirement Income Security Act of 1974 (relating to joint and survivor annuity requirement) is amended by striking out subsections (b) and (c) and inserting in lieu thereof the following: "(b) A plan which provides that the normal form of 12 benefit is an annuity shall, with respect to any participant 13 who under the plan is credited with at least 10 years of serv14 ice for vesting purposes under section 203 and who dies 15 before the annuity starting date, provide a survivor's annuity 16 for the participant's spouse "(1) which begins on the annuity starting date (determined as if the participant had lived until the earliest retirement age under the plan, or the participant's actual date of death if later, and had retired on such date prior to death), if the spouse is living on such date, and "(2) the payments under which are not less than the payments which would have been made under the survivor's annuity to which such spouse would have 1 2 3 4 5 6 7 4 been entitled if the participant had terminated employment on his date of death, had survived and retired on such annuity starting date, and had died on the day following such date." (2) Subsection (e) of section 205 of such Act is amended to read as follows: "(e) A plan shall not be treated as satisfying the require 8 ments of this section unless, under the plan "(1) each participant has a reasonable period (as prescribed by the Secretary of the Treasury by regulations) before the annuity starting date during which he may elect in writing (after having received a written explanation of the terms and conditions of the joint and survivor annuity and the effect of an election under this subsection) not to take such joint and survivor annuity, "(2) such an election will not be effective unless the spouse of the individual (as of the time such election is made) consents in writing to such an election and such consent is witnessed by a plan representative or a notary public. (3) Subsection (f) of section 205 of such Act is hereby repealed. (b) AMENDMENTS OF THE INTERNAL REVENUE CODE 25 OF 1954. 5 (1) Paragraph (11) of section 401(a) of the Internal Revenue Code of 1954 (relating to qualified pension, profit-sharing, and stock-bonus plans) is amended by striking out subparagraphs (B) and (C) and inserting in lieu thereof the following: "(B) A plan which provides that the normal form of benefit is an annuity shall, with respect to any participant who under the plan is credited with at least 10 years of service for vesting purposes under section 411(a) and who dies before the annuity starting date, provide a survivor's an nuity for the participant's spouse "(i) which begins on the annuity starting date (determined as if the participant had lived until the earliest retirement age under the plan, or the participant's actual date of death if later, and had retired on such date prior to death), if the spouse is living on such date, and "(ii) the payments under which are not less than the payments which would have been made under the survivor's annuity to which such spouse would have been entitled if the participant had terminated employment on his date of death, had survived and re 6 tired on such annuity starting date, and had died on the day following such date.” (2) Subparagraph (E) of section 401(a)(11) of such Code is amended to read as follows: "(E) A plan shall not be treated as satisfying the requirements of this section unless, under the plan "(i) each participant has a reasonable period (as prescribed by the Secretary by regulations) before the annuity starting date during which he may elect in writing (after having received a written explanation of the terms and conditions of the joint and survivor annuity and the effect of an election. under this paragraph) not to take such joint and survivor annuity, "(ii) such an election will not be effective unless the spouse of the individual (as of the time such election is made) consents in writing to such an election and such consent is witnessed by a plan representative or a notary public. (3) Subparagraph (F) of section 401(a)(11) of such Code is hereby repealed. |