[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5424 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5424

 To allow certain existing retirement plans maintained by churches to 
  continue to provide annuities directly to participants rather than 
                     through an insurance company.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2006

 Mr. Souder (for himself and Mr. Pitts) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To allow certain existing retirement plans maintained by churches to 
  continue to provide annuities directly to participants rather than 
                     through an insurance company.

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

SECTION 1. GRANDFATHER RULE FOR CHURCH PLANS WHICH SELF-ANNUITIZE.

    (a) In General.--In the case of any plan year ending after April 
17, 2002, annuity payments provided with respect to any account 
maintained for a participant or beneficiary under a qualified church 
plan shall not fail to satisfy the requirements of section 401(a)(9) of 
the Internal Revenue Code of 1986 merely because the payments are not 
made under an annuity contract purchased from an insurance company if 
such payments would not fail such requirements if provided with respect 
to a retirement income account described in section 403(b)(9) of such 
Code.
    (b) Qualified Church Plan.--For purposes of this section, the term 
``qualified church plan'' means any money purchase pension plan 
described in section 401(a) of such Code which--
            (1) is a church plan (as defined in section 414(e) of such 
        Code) with respect to which the election provided by section 
        410(d) of such Code has not been made, and
            (2) was in existence on April 17, 2002.
                                 <all>