WEEKLY LEGISLATIVE UPDATE 
For the Week of 08 June 2001 

I. THIS WEEK IN CONGRESS:

The House and Senate were not in session last week, so there was no Legislative Update for the week of 1 June.

Both Chambers returned this week, with the Senate changing hands as a result of Senator Jim Jeffords' defection from the Republican Party. The new 50-49 split meant the reorganization of the Senate and the election of Sen. Tom Daschle (D-SD) as Senate Majority Leader, Sen. Harry Reid (D-NV) as Assistant Majority Leader, Sen. Robert Byrd as President Pro Tempore, and a new slate of Democratic Committee and Subcommittee Chairmen. Later in the week, the Senate continued its consideration of the education bill (S.1).

The House debated legislation to reauthorize the U.S. Coast Guard.

II. UPDATE ON TOP LEGISLATIVE PRIORITIES:

No new cosponsors were added to H.R. 21 (Lautenberg). Our current total is fourteen (14).

Five new cosponsors were added to H.R. 218 (Concealed Carry), bringing our current total to one hundred thirty (130). We still need to continue to work towards boosting the cosponsorship level of this legislation. We had asked the State and local lodges in your region to contact their Representatives during the District Work Period and ask them to cosponsor this bill.  A faxed memo was sent out by the National Legislative Office on 23 May. Please advise the National Legislative Office of any contacts made by FOP members with their Members of Congress so that we can follow up with their offices.

Nineteen new cosponsors were added to H.R. 1475 (Collective Bargaining), bringing our current total to one hundred and fifty-three (153). Senators Judd Gregg (R-NH) , Ted Kennedy (D-MA), Mike DeWine (R-OH) and Evan Bayh (D-IN) introduced S. 952, the Senate companion bill on 25 May. We currently have six (6) cosponsors.

No new cosponsors were added to H.R. 1626 (Due Process). Our current total is three (3).

No new cosponsors were added to S. 840 (Due Process). Our current total is one (1).

No new cosponsors were added to H.R. 664 (Gov't Pension Offset). Our current total is two hundred and thirty-two (232), more than a majority of the House of Representatives.

One new cosponsor was added to S. 611 (Gov't Pension Offset), bringing our current total to nineteen (19).

Eleven new cosponsors were added to H.R. 848 (Windfall), bringing our current total to ninety-two (92).

III. OTHER LEGISLATIVE ACTIVITY:

On 30 May, President Bush signed into law H.R. 802 (now Public Law 107-12), the "Public Safety Officers' Medal of Valor Act." The new law establishes a medal awarded by the President in the name of Congress to a public safety officer for extraordinary valor above and beyond the call of duty. The concept for this legislation was first proposed to the FOP by member Jeff Muller of the US Park Police.

On 5 June, President Bush signed into law H.R. 1727 (now Public Law 107-15), the "Fallen Hero Survivor Benefit Fairness Act," which extends to survivors of public safety officers killed in the line of duty before December 31, 1996, the same tax status available to the survivors of such officers killed after that date (the exclusion from gross income of any survivor annuity received on account of the death of a public safety officer killed in the line of duty).

On 7 June, President Bush signed into law H.R. 1836 (Public Law 107 - 16), the "Economic Growth and Tax Relief Reconciliation Act." This is the President's signature "tax cut bill," which contained nearly all of the pension provisions that we were seeking to pass in H.R. 10, the "Comprehensive Retirement Security and Pension Reform Act." The following provisions of H.R. 10 were included in H.R. 1836, in large part because of the efforts of the F.O.P.:

Individual Retirement Arrangement Provisions:

§ Modification of IRA Contribution Limits - increase the maximum contribution limit for traditional and Roth IRAs to: $3,000 in 2002 through 2004, $4,000 in 2005 through 2007, and $5,000 in 2008; index in years thereafter

§ IRA Catch- Up Contributions - increase maximum contribution limits for traditional and Roth IRAs for individuals age 50 and above by $500 in 2002 and $1,000 in 2006

§ Deemed IRAs under employee plans - [while there is no further description in the JCT report, this provision would allow governmental 457 and 403(b) to offer an IRA through the employer plan] effective years beginning after 12/31/02.

Provisions for Expanding Coverage:

§ Increase contribution and benefit limits:

- Increase limitation on exclusion for elective deferrals to:  $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005, and $15,000 in 2006; index thereafter

- Increase defined benefit dollar limit to $160,000 effective years beginning after 12/31/01

- Increase annual addition limitation for defined contribution plans to $40,000 with indexing in $1,000 increments, effective years beginning after 12/31/01

- Increase qualified plan compensation limit to $200,000 with indexing in $5,000 increments and expand availability of qualified plans to self-employed individuals who are exempt from the self-employment tax by reason of their religious beliefs, effective years beginning after 12/31/01

- Increase limits on deferrals under deferred compensation plans of State and local governments [457 plans] and tax-exempt organizations to:  $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005, and $15,000 in 2006; index thereafter, effective years beginning after 12/31/01

§ Repeal of coordination requirements for deferred compensation plans of State and local governments and tax-exempt organizations, effective years beginning after 12/31/01

§ Option to treat elective deferrals as after-tax Roth contributions - [would apply to 401(k) and 403(b) plans] effective years beginning after 12/31/05

§ Nonrefundable credit to certain individuals [depending on AGI] for elective deferrals and IRA contributions (sunset 12/31/06) Provisions for Enhancing Fairness for Women

§ Additional catch-up contributions for individuals age 50 and above - increase the otherwise applicable contribution limit for all plans other than SIMPLE by $1,000 in 2002, $2,000 in 2003, $3,000 in 2004, $4,000 in 2005, and $5,000 in 2006 and thereafter; index in $500 increments after 2006; SIMPLE plan catch-ups would be 50% of that applicable to other plans;  (nondiscrimination rules would not apply)

§ Equitable treatment for contributions of employees to defined contribution plans, effective years beginning after 12/31/01 [it is unclear whether the MEA provision would also be repealed beginning after 12/31/01].

§ Increase qualified plan compensation limit to $200,000 with indexing in $5,000 increments, effective years beginning after 12/31/01

§ Simplify and update the minimum distribution rules by modifying post-death distribution rules, effective years beginning after 12/31/01

§ Clarification of tax treatment of division of section 457 plan benefits upon divorce [457 DROs], effective for transfers, distributions, and payments made after 12/31/01

§ Modification of safe harbor relief for hardship withdrawals from 401(k) plans, effective years beginning after 12/31/01

Provisions for Increasing Portability for Participants:

§ Rollovers allowed among governmental section 457 plans, section 403(b) plans, and qualified plans, effective for distributions after 12/31/01

§ Rollovers of IRAs to workplace retirement plans, effective for distributions after 12/31/01

§ Rollovers of after-tax retirement plan contributions, effective for distributions made after 12/31/01

§ Waiver of 60-day rule, effective for distributions after 12/31/01

§ Purchase of service credit in governmental defined benefit plans, effective for transfers after 12/31/01

§ Employers may disregard rollovers for cash-out amounts, effective for distributions after 12/31/01

§ Minimum distribution and inclusion requirements for section 457 plans [flexibility for 457 distribution options], effective for distributions after 12/31/01

Provisions for Strengthening Pension Security and Enforcement:

§ Automatic rollovers of certain mandatory distributions, effective for distributions after federal regulations are prescribed.

In addition, the F.O.P. took over the Chairmanship of the Law Enforcement Steering Committee. At our first meeting on 6 June, Executive Director Jim Pasco introduced Mr. Ken Mehlman, Director of Political Affairs for the White House. Mr. Mehlman credited the F.O.P. for our efforts to retain the pension provisions in the President's tax cut bill and underscored our strong relationship with the new Administration.

Executive Director Pasco met this week with Makan Delrahim, chief counsel for Senator Orrin G. Hatch (R-UT), the former Chairman and now Ranking Member of the Senate Judiciary Committee, to discuss how the change of power in the Senate will affect the F.O.P. agenda.

Executive Director Pasco also met this week with Stuart Verdery, chief counsel for Senator Don Nickles (R-OK), the Assistant Minority Leader, to talk about the F.O.P.'s agenda in the newly reorganized Senate.

Executive Director Pasco also met with Jay Apperson, the new chief counsel for Congressman Lamar Smith (R-TX), who chairs the Subcommittee on Crime.  Executive Director Pasco acquainted the new chief counsel with the F.O.P.'s agenda items and discussed how we might move ahead with H.R. 218.

Executive Director Pasco also had a lengthy, substantive conversation with Alan Hoffman, chief of staff to Senator Joseph R. Biden, Jr. (D-DE) about the F.O.P. agenda. Given the Democratic control of the Senate, Senator Biden will play a very prominent role on the Judiciary Committee by chairing a new subcommittee with jurisdiction over major criminal justice matters.

Fraternal Order of Police  (O) (202) 547-8189
National Legislative Office (F) (202) 547-8190
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Washington, DC 20002
FOP National Legislative Office

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Last Updated: Wednesday, December 21st, 2005