Portable Pension Plan Act of 1987

[AI summary unavailable — showing source text] Portable Pension Plan Act of 1987 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to require, at an employee's request, any employer who has not maintained a qualified pension plan for five years prior to such request to establish a salary reduction arrangement providing for employee coverage under a simplified employee pension plan. Provides that employers are not required to make contributions to such plan. Amends the Internal Revenue Code to make conforming amendments. Directs the Secretary of Labor to prescribe by regulation a simplified method of compliance with simplified employee pension plans. Makes participation and vesting requirements of ERISA applicable to such plans and funding requirements inapplicable to such plans. Increases from ten percent to 20 percent the additional tax on early distributions from qualified retirement plans. Exempts from such tax early distributions from individual retirement plans for medical expenses. Requires the consent of the participant before the immediate distribution of a vested accrued benefit in excess of $3,500. Provides for the portability (transfer) of amounts between plans upon a participant's preretirement se…