[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5365 Enrolled Bill (ENR)]

        H.R.5365

                       One Hundred Eighth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four


                                 An Act


 
To treat certain arrangements maintained by the YMCA Retirement Fund as 
  church plans for the purposes of certain provisions of the Internal 
              Revenue Code of 1986, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN ARRANGEMENTS MAINTAINED BY THE YMCA RETIREMENT FUND 
              TREATED AS CHURCH PLANS.

    (a) Retirement Plans.--
        (1) In general.--For purposes of sections 401(a) and 403(b) of 
    the Internal Revenue Code of 1986, any retirement plan maintained 
    by the YMCA Retirement Fund as of January 1, 2003, shall be treated 
    as a church plan (within the meaning of section 414(e) of such 
    Code) which is maintained by an organization described in section 
    414(e)(3)(A) of such Code.
        (2) Tax-deferred retirement plan.--In the case of a retirement 
    plan described in paragraph (1) which allows contributions to be 
    made under a salary reduction agreement--
            (A) such treatment shall not apply for purposes of section 
        415(c)(7) of such Code, and
            (B) any account maintained for a participant or beneficiary 
        of such plan shall be treated for purposes of such Code as a 
        retirement income account described in section 403(b)(9) of 
        such Code, except that such account shall not, for purposes of 
        section 403(b)(12) of such Code, be treated as a contract 
        purchased by a church for purposes of section 403(b)(1)(D) of 
        such Code.
        (3) Money purchase pension plan.--In the case of a retirement 
    plan described in paragraph (1) which is subject to the 
    requirements of section 401(a) of such Code--
            (A) such plan (but not any reserves held by the YMCA 
        Retirement Fund)--
                (i) shall be treated for purposes of such Code as a 
            defined contribution plan which is a money purchase pension 
            plan, and
                (ii) shall be treated as having made an election under 
            section 410(d) of such Code for plan years beginning after 
            December 31, 2005, except that notwithstanding the 
            election--

                    (I) nothing in the Employee Retirement Income 
                Security Act of 1974 or such Code shall prohibit the 
                YMCA Retirement Fund from commingling for investment 
                purposes the assets of the electing plan with the 
                assets of such Fund and with the assets of any employee 
                benefit plan maintained by such Fund, and
                    (II) nothing in this section shall be construed as 
                subjecting any assets described in subclause (I), other 
                than the assets of the electing plan, to any provision 
                of such Act,

            (B) notwithstanding section 401(a)(11) or 417 of such Code 
        or section 205 of such Act, such plan may offer a lump-sum 
        distribution option to participants who have not attained age 
        55 without offering such participants an annuity option, and
            (C) any account maintained for a participant or beneficiary 
        of such plan shall, for purposes of section 401(a)(9) of such 
        Code, be treated as a retirement income account described in 
        section 403(b)(9) of such Code.
        (4) Self-funded death benefit plan.--For purposes of section 
    7702(j) of such Code, a retirement plan described in paragraph (1) 
    shall be treated as an arrangement described in section 7702(j)(2).
    (b) YMCA Retirement Fund.--For purposes of this section, the term 
``YMCA Retirement Fund'' means the Young Men's Christian Association 
Retirement Fund, a corporation created by an Act of the State of New 
York which became law on April 30, 1921.
    (c) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2003.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.