,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ecch ,,in ,,the ,,house ,,of ,,representatives ,july #ca1 #bjad ,ms4 ,edwards 7for herself1 ,mr4 ,connolly1 ,mr4 ,cummings1 ,ms4 ,norton1 ,ms4 ,kaptur1 ,mr4 ,lynch1 ,mr4 ,ellison1 and ,mr4 ,rangel7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,oversight and ,government ,reform and ,foreign ,affairs1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to repeal the revised annuity employee and further revised annuity employee categories within the ,federal ,employees ,retirement ,system1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,federal ,employee ,pension ,fairness ,act4 #b4 ,repeal of ,,fers revised and further revised annuitant categories 7a7 ,repeal of annuity computation ,section #hdae of title #e1 ,united ,states ,code1 is amended by striking subsection 7d74 7b7 ,repeal of annuitant categories ,section #hdbb7;a77#c7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by striking other than revised annuity employees or further revised annuity employees2 and 7#b7 by striking subparagraphs 7,b7 and 7,c74 7c7 ,repeal of ,government contributions ,section #hdbc7;a7 of title #e1 ,united ,states ,code1 is amended by striking paragraph 7#b7 and inserting the following3 7#b7 ,in determining any normal-cost percentage to be applied under this subsection1 amounts provided for under section #hdbb shall be taken into account4 4 7d7 ,conforming amendments ,section #hdja of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#ce77;,b71 by striking the semi-colon at the end and inserting 2 and2 7#b7 in paragraph 7#cf71 by striking 2 and at the end and inserting a period2 and 7#c7 by striking paragraphs 7#cg7 and 7#ch74 7e7 ,application 7#a7 ,in general ,the amendments made by this section shall apply on the first day of the first pay period beginning after the date of enactment of this ,act4 7#b7 ,treatment of former revised or further revised annuitants ,any individual who1 as of the date of enactment of this ,act1 was a revised annuity employee or a further revised annuity employee 7but for the amendments made by this section7 shall be deemed to be an employee or ,member 7as those terms are defined in section #hdja of title #e1 ,united ,states ,code7 for purposes of chapter #hd of such title4 #c4 ,repeal of ,foreign ,service revised or further revised annuity participant categories 7a7 ,repeal of annuitant categories ,section #hef7;a7 of the ,foreign ,service ,act of #aihj 7#bb ,u4,s4,c4 #djga;e7a77 is amended by striking paragraph 7#b7 and inserting the following3 7#b7 ,the applicable percentage for a participant other than a revised annuity participant or a further revised annuity participant shall be as follows3 #g4e;,before ,january #a1 #aiii4 #g4ge;,january #a1 #aiii1 to ,december #ca1 #aiii4 #g4i;,january #a1 #bjjj1 to ,december #ca1 #bjjj4 #g4ee;,after ,january #aa1 #bjjc4 4 7b7 ,government contribution ,section #heg of the ,foreign ,service ,act of #aihj 7#bb ,u4,s4,c4 #djga;f7 is amended by striking subsection 7c74 7c7 ,conforming amendments ,section #heb of such ,act is amended 7#bb ,u4,s4,c4 #djga;a7-- 7#a7 by striking paragraphs 7#g7 and 7#h72 and 7#b7 by redesignating paragraphs 7#i71 7#aj71 and 7#aa7 as paragraphs 7#g71 7#h71 and 7#i71 respectively4 7d7 ,application 7#a7 ,in general ,the amendments made by this section shall apply on the first day of the first pay period beginning after the date of enactment of this ,act4 7#b7 ,treatment of former revised or further revised annuitants ,any individual who1 as of the date of enactment of this ,act1 was a revised annuity participant or a further revised annuity participant 7but for the amendments made by this section7 shall be deemed to be a participant 7as that term is defined in section #heb of the ,foreign ,service ,act of #aihj 7#bb ,u4,s4,c4 #djga;a77 for purposes of the ,foreign ,service pension system4 #d4 ,treatment of foreign corporations managed and controlled in the ,united ,states as domestic corporations 7a7 ,in general ,section #ggja of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7p7 as subsection 7q7 and by inserting after subsection 7o7 the following new subsection3 7p7 ,certain corporations managed and controlled in the ,united ,states treated as domestic for income tax 7#a7 ,in general ,notwithstanding subsection 7a77#d71 in the case of a corporation described in paragraph 7#b7 if-- 7,a7 the corporation would not otherwise be treated as a domestic corporation for purposes of this title1 but 7,b7 the management and control of the corporation occurs1 directly or indirectly1 primarily within the ,united ,states1 then1 solely for purposes of chapter #a 7and any other provision of this title relating to chapter #a71 the corporation shall be treated as a domestic corporation4 7#b7 ,corporation described 7,a7 ,in general ,a corporation is described in this paragraph if-- 7i7 the stock of such corporation is regularly traded on an established securities market1 or 7ii7 the aggregate gross assets of such corporation 7or any predecessor thereof71 including assets under management for investors1 whether held directly or indirectly1 at any time during the taxable year or any preceding taxable year is #ej1jjj1jjj or more4 7,b7 ,general exception ,a corporation shall not be treated as described in this paragraph if-- 7i7 such corporation was treated as a corporation described in this paragraph in a preceding taxable year1 7ii7 such corporation-- 7,i7 is not regularly traded on an established securities market1 and 7,,ii7 has1 and is reasonably expected to continue to have1 aggregate gross assets 7including assets under management for investors1 whether held directly or indirectly7 of less than #ej1jjj1jjj1 and 7iii7 the ,secretary grants a waiver to such corporation under this subparagraph4 7#c7 ,management and control 7,a7 ,in general ,the ,secretary shall prescribe regulations for purposes of determining cases in which the management and control of a corporation is to be treated as occurring primarily within the ,united ,states4 7,b7 ,executive officers and senior management ,such regulations shall provide that-- 7i7 the management and control of a corporation shall be treated as occurring primarily within the ,united ,states if substantially all of the executive officers and senior management of the corporation who exercise day-to-day responsibility for making decisions involving strategic1 financial1 and operational policies of the corporation are located primarily within the ,united ,states1 and 7ii7 individuals who are not executive officers and senior management of the corporation 7including individuals who are officers or employees of other corporations in the same chain of corporations as the corporation7 shall be treated as executive officers and senior management if such individuals exercise the day-to-day responsibilities of the corporation described in clause 7i74 7,c7 ,corporations primarily holding investment assets ,such regulations shall also provide that the management and control of a corporation shall be treated as occurring primarily within the ,united ,states if-- 7i7 the assets of such corporation 7directly or indirectly7 consist primarily of assets being managed on behalf of investors1 and 7ii7 decisions about how to invest the assets are made in the ,united ,states4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning on or after the date which is #b years after the date of the enactment of this ,act1 whether or not regulations are issued under section #ggja7p77#c7 of the ,internal ,revenue ,code of #aihf1 as added by this section4 #e4 ,modifications to rules relating to inverted corporations 7a7 ,in general ,subsection 7b7 of section #ghgd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7b7 ,inverted corporations treated as domestic corporations 7#a7 ,in general ,notwithstanding section #ggja7;a77#d71 a foreign corporation shall be treated for purposes of this title as a domestic corporation if-- 7,a7 such corporation would be a surrogate foreign corporation if subsection 7a77#b7 were applied by substituting #hj percent for #fj percent1 or 7,b7 such corporation is an inverted domestic corporation4 7#b7 ,inverted domestic corporation ,for purposes of this subsection1 a foreign corporation shall be treated as an inverted domestic corporation if1 pursuant to a plan 7or a series of related transactions7-- 7,a7 the entity completes after ,may #h1 #bjad1 the direct or indirect acquisition of-- 7i7 substantially all of the properties held directly or indirectly by a domestic corporation1 or 7ii7 substantially all of the assets of1 or substantially all of the properties constituting a trade or business of1 a domestic partnership1 and 7,b7 after the acquisition1 either-- 7i7 more than #ej percent of the stock 7by vote or value7 of the entity is held-- 7,i7 in the case of an acquisition with respect to a domestic corporation1 by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation1 or 7,,ii7 in the case of an acquisition with respect to a domestic partnership1 by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership1 or 7ii7 the management and control of the expanded affiliated group which includes the entity occurs1 directly or indirectly1 primarily within the ,united ,states1 and such expanded affiliated group has significant domestic business activities4 7#c7 ,exception for corporations with substantial business activities in foreign country of organization ,a foreign corporation described in paragraph 7#b7 shall not be treated as an inverted domestic corporation if after the acquisition the expanded affiliated group which includes the entity has substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group4 ,for purposes of subsection 7a77#b77;,b77iii7 and the preceding sentence1 the term substantial business activities shall have the meaning given such term under regulations in effect on ,may #h1 #bjad1 except that the ,secretary may issue regulations increasing the threshold percent in any of the tests under such regulations for determining if business activities constitute substantial business activities for purposes of this paragraph4 7#d7 ,management and control ,for purposes of paragraph 7#b77;,b77ii7-- 7,a7 ,in general ,the ,secretary shall prescribe regulations for purposes of determining cases in which the management and control of an expanded affiliated group is to be treated as occurring1 directly or indirectly1 primarily within the ,united ,states4 ,the regulations prescribed under the preceding sentence shall apply to periods after ,may #h1 #bjad4 7,b7 ,executive officers and senior management ,such regulations shall provide that the management and control of an expanded affiliated group shall be treated as occurring1 directly or indirectly1 primarily within the ,united ,states if substantially all of the executive officers and senior management of the expanded affiliated group who exercise day-to-day responsibility for making decisions involving strategic1 financial1 and operational policies of the expanded affiliated group are based or primarily located within the ,united ,states4 ,individuals who in fact exercise such day-to-day responsibilities shall be treated as executive officers and senior management regardless of their title4 7#e7 ,significant domestic business activities ,for purposes of paragraph 7#b77;,b77ii71 an expanded affiliated group has significant domestic business activities if at least #be percent of-- 7,a7 the employees of the group are based in the ,united ,states1 7,b7 the employee compensation incurred by the group is incurred with respect to employees based in the ,united ,states1 7,c7 the assets of the group are located in the ,united ,states1 or 7,d7 the income of the group is derived in the ,united ,states1 determined in the same manner as such determinations are made for purposes of determining substantial business activities under regulations referred to in paragraph 7#c7 as in effect on ,may #h1 #bjad1 but applied by treating all references in such regulations to foreign country and relevant foreign country as references to the ,united ,states4 ,the ,secretary may issue regulations decreasing the threshold percent in any of the tests under such regulations for determining if business activities constitute significant domestic business activities for purposes of this paragraph4 4 7b7 ,conforming amendments 7#a7 ,clause 7i7 of section #ghgd7;a77#b77;,b7 of such ,code is amended by striking after ,march #d1 #bjjc1 and inserting after ,march #d1 #bjjc1 and before ,may #i1 #bjad14 7#b7 ,subsection 7c7 of section #ghgd of such ,code is amended-- 7,a7 in paragraph 7#b7-- 7i7 by striking subsection 7a77#b77;,b77ii7 and inserting subsections 7a77#b77;,b77ii7 and 7b77#b77;,b77i71 and 7ii7 by inserting or 7b77#b77;,a7 after 7a77#b77;,b77i7 in subparagraph 7,b71 7,b7 in paragraph 7#c71 by inserting or 7b77#b77;,b77i71 as the case may be1 after 7a77#b77;,b77ii71 7,c7 in paragraph 7#e71 by striking subsection 7a77#b77;,b77ii7 and inserting subsections 7a77#b77;,b77ii7 and 7b77#b77;,b77i71 and 7,d7 in paragraph 7#f71 by inserting or inverted domestic corporation1 as the case may be1 after surrogate foreign corporation4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,may #h1 #bjad4