,,ii  #aadth ,,congress  #b;d ,session  
,s4 #bedf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,february #aa1 
#bjaf ,mr4 ,whitehouse 7for himself1    
,mr4 ,blumenthal1 and ,mrs4 ,mc,caskill7
 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 require certain plans providing
 for nonqualified deferred compensation 
to require repayment of benefits to the 
employer in the event of extraordinary  
governmental assistance1 and for other  
purposes4  #a4 ,short title  ,this ,act 
may be cited as the ,no ,windfalls for  
,bailed ,out ,executives ,act4  #b4     
,required repayment of certain          
nonqualified deferred compensation in   
case of extraordinary governmental      
assistance  7a7 ,in general ,subsection 
7a7 of section #dji;,a of the ,internal 
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#e7 ,required repayment in 

case of extraordinary governmental      
assistance  7,a7 ,in general ,the       
requirements of this paragraph are met  
if the plan provides that1 if any       
employer maintaining the plan receives  
extraordinary governmental assistance-- 
7i7 any compensation deferred under the 
plan which is attributable to services  
performed by a designated individual    
with respect to such employer during the
 #cf-month period ending on the date of 
the receipt of such assistance shall be 
forfeited1 if not yet distributed by    
such date1 or repaid to the employer1 if
 already distributed by such date1 and  
7ii7 no further compensation will be    
deferred under the plan with respect to 
such designated individuals before the  
date on which the extraordinary         
governmental assistance is fully repaid 
to the ,federal ,government4  7,b7      
,extraordinary governmental assistance  
,for purposes of this paragraph1 the    
term extraordinary governmental         
assistance means any grant1 loan1 loan  

guarantee1 or other assistance 7whether 
in cash or otherwise7 made by the       
,federal ,government to or on behalf of 
an employer which is intended to prevent
 the employer from becoming imminently  
insolvent 7within the meaning of section
 #aja7cb7 of title #aa1 ,united ,states 
,code7 or to cure such insolvency of the
 employer4  7,c7 ,designated individual 
,for purposes of this paragraph1 the    
term designated individual means-- 7i7  
any key employee 7as defined in section 
#daf7;i77#a771  7ii7 any member of the  
board of directors or other officer1 and
  7iii7 any other employee having an    
annual compensation from the employer of
 more than #a1jjj1jjj in any year during
 or after the #cf-month period ending on
 the date of the receipt of the         
extraordinary governmental assistance4  
7,d7 ,additional tax payable with       
respect to compensation deferred or not 
repaid in violation of rules  7i7 ,in   
general ,if compensation is required to 
be included in gross income under       

paragraph 7#a77;,a7 for a taxable year  
due to a failure to meet the            
requirements of this paragraph1 then in 
the case of any compensation which is   
not repaid to the employer in violation 
of subparagraph 7,a77i7 and any         
compensation which is deferred under the
 plan in violation of subparagraph      
7,a77ii71 paragraph 7#a77;,b7 shall not 
apply and the tax imposed by this       
chapter for the taxable year shall be   
increased by an amount equal to--  7,i7 
#ajj percent of the compensation that   
was not repaid in violation of          
subparagraph 7,a77i71 or #ajj percent of
 the compensation that was deferred in  
violation of subparagraph 7,a77ii7 which
 is attributable to services performed  
during the taxable year1 whichever is   
applicable1 reduced by  7,,ii7 the      
amount of tax imposed by this chapter   
with respect to such compensation for   
the taxable year other than under this  
subparagraph4  ,in no event shall the   
effective rate of tax imposed by this   

chapter on any such compensation be     
greater than #ajj percent4  7ii7        
,coordination with employer withholding 
,for purposes of applying section       
#cdjb7;a7 to-- 7,i7 any compensation    
which is not repaid to the employer in  
violation of subparagraph 7,a77i71 and  
7,,ii7 any compensation which is        
deferred under the plan in violation of 
subparagraph 7,a77ii71  which is treated
 as wages for a taxable year by reason  
of this paragraph1 in lieu of the rate  
of tax applicable under section         
#cdjb7;a77#a71 tax shall be withheld on 
such compensation at a rate of #ajj     
percent4  4  7b7 ,conforming amendments 
7#a7 ,subclause 7,i7 of section         
#dji;,a7a77#a77;,a77i7 of the ,internal 
,revenue ,code of #aihf is amended by   
striking and 7#d7 and inserting 7#d71   
and 7#e74  7#b7 ,clause 7i7 of section  
#dji;,a7a77#a77;,b7 of such ,code is    
amended by striking ,if and inserting   
,except as provided in paragraph        
7#e77;,d71 if4  7c7 ,effective date     

7#a7 ,in general ,the amendments made by
 this section shall apply to amounts    
deferred under nonqualified deferred    
compensation plans 7as defined in       
section #dji;,a7d77#a7 of the ,internal 
,revenue ,code of #aihf7 in taxable     
years beginning after the date of the   
enactment of this ,act4  7#b7 ,special  
rule ,the amendments made by this       
section shall apply to earnings on      
deferred compensation only to the extent
 that such amendments apply to such     
compensation4