,,ii #aacth ,,congress #ast ,session ,s4 #ejf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #g1 #bjac ,ms4 ,collins 7for herself and ,mr4 ,schumer7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide recruitment and retention incentives for volunteer emergency service workers4 #a4 ,short title ,this ,act may be cited as the ,volunteer ,emergency ,services ,recruitment and ,retention ,act of #bjac4 #b4 ,elective treatment of length of service award programs as eligible deferred compensation plans 7a7 ,in general ,section #deg7;e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ai7 ,special rules applicable to length of service award plans 7,a7 ,in general ,the term eligible deferred compensation plan shall include1 at the election of its sponsor1 any length of service award plan4 ,any such election shall be irrevocable4 ,in the case of a length of service award plan whose sponsor has elected to have such plan treated as an eligible deferred compensation plan1 such plan shall be administered in a manner consistent with the requirements of this section and such sponsor shall be treated as an eligible employer described in paragraph 7#a77;,a74 7,b7 ,length of service award plan ,for purposes of this paragraph-- 7i7 ,in general ,the term length of service award plan means any plan paying solely length of service awards to bona fide volunteers 7or their beneficiaries7 on account of qualified services performed by such volunteers4 7ii7 ,bona fide volunteer ,an individual shall be treated as a bona fide volunteer if the only compensation received by such individual for performing qualified services is in the form of-- 7,i7 reimbursement for 7or a reasonable allowance for7 reasonable expenses incurred in the performance of such services1 or 7,,ii7 reasonable benefits 7including length of service awards71 and fees for such services1 customarily paid by eligible employers in connection with the performance of such services by volunteers4 7iii7 ,qualified services ,the term qualified services means firefighting and prevention services1 emergency medical services1 ambulance services1 and emergency rescue services4 7,c7 ,maximum deferral amount ,in the case of a length of service award plan whose sponsor has elected to have such plan treated as an eligible deferred compensation plan1 subsection 7b77#b7 shall be applied by striking the lesser of-- and all that follows and inserting the applicable dollar amount14 7,d7 ,distribution requirements ,in the case of a length of service award plan whose sponsor has elected to have such plan treated as an eligible deferred compensation plan1 subsection 7d77#a77;,a77ii7 shall be applied by deeming a severance from employment to have occurred at the later of-- 7i7 the payment date under the terms of the plan1 or 7ii7 the date on which the plan participant ceases to perform qualified services4 7,e7 ,limitation on accruals 7i7 ,in general ,in the case of a length of service award plan that is a defined benefit plan 7as defined in section #dad7;j77 whose sponsor has not elected to have such plan treated as an eligible deferred compensation plan1 such plan shall be treated as not providing for the deferral of compensation if the aggregate amount of length of service awards accruing with respect to any year of service for any bona fide volunteer does not exceed #e1ejj4 ,in the case of a length of service award plan described in the preceding sentence that is a defined benefit plan 7as defined in section #dad7;j771 the limitation on the annual deferral shall apply to the actuarial present value of the aggregate amount of length of service awards accruing with respect to any year of service4 ,such actuarial present value shall be calculated using reasonable actuarial assumptions and methods assuming payment shall be made under the most valuable form of payment of the length of service award under the program with payment commencing at the later of the earliest age at which unreduced benefits are payable under the program or the participant's current age4 7ii7 ,cost-of-living adjustment ,in the case of taxable years beginning after ,december #ca1 #bjac1 the ,secretary shall adjust the #e1ejj amount under clause 7i7 at the same time and in the same manner as under section #dae7;d71 except that the base period shall be the calendar quarter beginning ,july #a1 #bjab1 and any increase under this paragraph that is not a multiple of #ejj shall be rounded to the next lowest multiple of #ejj4 4 7b7 ,conforming amendments 7#a7 ,section #deg7;e77#aa7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#aa7 ,certain plans excluded ,any bona fide vacation leave1 sick leave1 compensatory time1 severance pay1 disability pay1 or death benefit plan shall be treated as not providing for the deferral of compensation4 4 7#b7 ,section #caba7;a77#e77;,i7 of such ,code is amended by striking section #deg7;e77#aa77;,a77ii7 and inserting section #deg7;e77#ai74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #c4 ,exemption of length of service award programs from the ,employee ,retirement ,income ,security ,act of #aigd ,the ,secretary of ,labor shall issue guidance clarifying that a length of service award program described in section #deg7;e77#ai7 of the ,internal ,revenue ,code of #aihf is not an employee pension benefit plan under section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b774