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H.R. 2187House115th Congress (2017-2019)In Committee

To amend the Internal Revenue Code of 1986 to clarify the treatment of certain retirement plan contributions picked up by governmental employers.

Sponsored by Diane BlackRep. Diane Black (R-TN)
Introduced April 27, 2017

AI-Generated Summary

Updated April 15, 2026 at 3:01 PM UTC

The bill updates the Internal Revenue Code to make clear that retirement plan contributions made by governmental employers are still treated as "picked up" even when an employee makes an irrevocable choice between two different benefit formulas. This clarification applies to government‑run retirement plans and the employees who participate in them, ensuring the contributions remain tax‑qualified.

Key Provisions

  • Amends Section 414(h)(2) of the tax code by adding a new subparagraph that states a contribution is not disqualified simply because an employee elects between two alternative benefit formulas.
  • Specifies that this rule applies even if the employee is already covered by one of the benefit formulas.
  • The change takes effect for tax years ending after the law is enacted.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 27, 2017

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HouseIntro Referral

Introduced in House

April 27, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 27, 2017

Bill Text

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Introduced in HouseIssued April 27, 2017

I

115th CONGRESS

1st Session

H. R. 2187

IN THE HOUSE OF REPRESENTATIVES

April 27, 2017

Mrs. Black (for herself, Mr. Fleischmann, Mr. Roe of Tennessee, Mr. Duncan of Tennessee, Mr. DesJarlais, Mrs. Blackburn, and Mr. Kustoff of Tennessee) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to clarify the treatment of certain retirement plan contributions picked up by governmental employers.

1.

Clarification of treatment of certain retirement plan contributions picked up by governmental employers

(a)

In general

Section 414(h)(2) of the Internal Revenue Code of 1986 is amended—

(1)

by striking For purposes of paragraph (1) and inserting the following:

(A)

In general

For purposes of paragraph (1)

, and

(2)

by adding at the end the following new subparagraph:

(B)

Treatment of elections between alternative benefit formulas

(i)

In general

For purposes of subparagraph (A), a contribution shall not fail to be treated as picked up by an employing unit merely because the employee may make an irrevocable election between the application of two alternative benefit formulas involving the same or different levels of employee contributions.

(ii)

Application to existing employees

Clause (i) shall be applied without regard to whether the employee is already covered by one of the benefit formulas referred to therein.

.

(b)

Effective date

The amendment made by this section shall apply to years ending after the date of the enactment of this Act.