S.Amdt. 3399

SA 3399. Mr. NELSON of Florida (for himself and Mr. Cornyn) submitted
an amendment intended to be proposed to amendment SA 3336 proposed by
Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of
1986 to extend certain expiring provisions, and for other purposes;
which was ordered to lie on the table; as follows:

On page 268, between lines 11 and 12, insert the following:

SEC. ___. MODIFICATION OF EXCEPTION FROM 10 PERCENT EARLY
WITHDRAWAL PENALTY FOR PUBLIC SAFETY EMPLOYEES.

(a) Repeal of Restriction to Defined Benefit Plans.--
Subparagraph (A) of section 72(t)(10)(A) is amended by
striking ``which is a defined benefit plan''.
(b) Application to Annuities Commencing Before the Pension
Protection Act of 2006.--Paragraph (10) of section 72(t) is
amended by adding at the end the following new subparagraph:
``(C) Transitional rule for annuities.--Paragraph (4) shall
not apply to any modification to a series of substantially
equal periodic payments which are made with respect to a
qualified public safety employee if such series of payments
commenced--
``(i) before the date of the enactment of the Pension
Protection Act of 2006, and
``(ii) after such qualified public safety employee's
separation from service after attainment of age 50.''.
(c) Effective Dates.--
(1) Repeal of restriction to defined benefit plans.--The
amendment made by subsection (a) shall apply to distributions
made after the date of the enactment of the Pension
Protection Act of 2006.
(2) Transitional rule for annuities.--The amendment made by
subsection (b) shall apply to modifications made after the
date of the enactment of the Pension Protection Act of 2006.
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