PRINTER'S NO. 1163
No. 1021 Session of 1989
INTRODUCED BY ITKIN, VROON, TRELLO, PISTELLA, COLAFELLA,
KASUNIC, BUNT, VEON, J. L. WRIGHT, RYBAK, BOYES,
YANDRISEVITS, GEIST, MORRIS, DORR, KUKOVICH, ROBINSON, NOYE,
DALEY, HASAY, BELARDI, LASHINGER, STABACK, BILLOW, FAIRCHILD,
FARGO, MAIALE, COLAIZZO, TIGUE, NAHILL, BURD, MELIO, FLICK,
FARMER, HECKLER, E. Z. TAYLOR, HALUSKA, McVERRY, JOHNSON,
SAURMAN, MICHLOVIC, DURHAM, J. TAYLOR, HOWLETT, LANGTRY,
OLASZ, BISHOP AND G. SNYDER, APRIL 5, 1989
REFERRED TO COMMITTEE ON FINANCE, APRIL 5, 1989
AN ACT
1 Amending Title 72 (Taxation and Fiscal Affairs) of the
2 Pennsylvania Consolidated Statutes, further providing for
3 employment benefits.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 1711(r) of Title 72 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 1711. Transfers not subject to tax.
9 * * *
10 (r) Employment benefits.--Payments under pension, stock
11 bonus, profit-sharing and other retirement plans including, but
12 not limited to, H.R.10 plans, individual retirement accounts,
13 individual retirement annuities and individual retirement bonds
14 to distributees designated by decedent or designated in
15 accordance with the terms of the plan, are exempt from
1 inheritance tax to the extent that decedent before his death did
2 not otherwise have the right to possess (including proprietary
3 rights at termination of employment), enjoy, assign or
4 anticipate the payment made. In addition to this exemption,
5 whether or not the decedent possessed any of these rights, the
6 payments are exempt from inheritance tax:
7 (i) if the sole distributee is the spouse of the
8 decedent; or
9 (ii) to the same extent that they are exempt from
10 Federal estate tax under the provisions of the Internal
11 Revenue Code of 1954, as amended, any supplement to the
12 code, or any similar provision in effect from time to
13 time for Federal estate tax purposes, except that a
14 payment, which would otherwise be exempt for Federal
15 estate tax purposes if it had not been made in a lump-sum
16 or other nonexempt form of payment, shall be exempt from
17 inheritance tax even though paid in a lump-sum or other
18 form of payment.
19 The proceeds of life insurance otherwise exempt under subsection
20 (d) shall not be subject to inheritance tax because they are
21 paid under a pension, stock bonus, profit-sharing, H.R.10 or
22 other retirement plan.
23 Section 2. This act shall take effect in 60 days.
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