[Congressional Record Volume 157, Number 107 (Monday, July 18, 2011)]
[House]
[Pages H5130-H5131]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                CHURCH PLAN INVESTMENT CLARIFICATION ACT

  Mrs. BIGGERT. Mr. Speaker, I move to suspend the rules and pass the 
bill

[[Page H5131]]

(H.R. 33) to amend the Securities Act of 1933 to specify when certain 
securities issued in connection with church plans are treated as 
exempted securities for purposes of that Act, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Church Plan Investment 
     Clarification Act''.

     SEC. 2. SECURITIES ACT OF 1933 AMENDMENT.

       Section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 
     77c(a)(2)) is amended--
       (1) by inserting ``(other than a retirement income account 
     described in section 403(b)(9) of the Internal Revenue Code 
     of 1986, to the extent that the interest or participation in 
     such single trust fund or collective trust fund is issued to 
     a church, a convention or association of churches, or an 
     organization described in section 414(e)(3)(A) of such Code 
     establishing or maintaining the retirement income account or 
     to a trust established by any such entity in connection with 
     the retirement income account)'' after ``403(b) of such 
     Code''; and
       (2) by inserting ``(other than a person participating in a 
     church plan who is described in section 414(e)(3)(B) of the 
     Internal Revenue Code of 1986)'' after ``section 401(c)(1) of 
     such Code''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Illinois (Mrs. Biggert) and the gentleman from Indiana (Mr. Carson) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from Illinois.


                             General Leave

  Mrs. BIGGERT. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to add extraneous material on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Illinois?
  There was no objection.
  Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 33, the Church Plan Investment 
Clarification Act. I would like to thank my colleagues on the Financial 
Services Committee for their support of this legislation. I would also 
like to thank Mr. Carson of Indiana for managing the bill for the other 
side of the aisle.
  H.R. 33, the Church Plan Investment Clarification Act, is a technical 
corrections bill to amend Public Law 108-359, the Church Pension 
Fairness Act. It clarifies an exemption in current law to allow church 
pension plans, like secular pension plans, to invest in collective 
trusts.
  Due to a technical error included in the 2004 law, the necessary 
exemption from the Securities Act of 1933 was not provided to give 
church pension plans access to collective trusts. Collective trusts 
allow pension plans to pool their assets, diversify their investments, 
and share risk and transaction costs with other pension plans, thereby 
reaping the benefits of collective buying power. Again, H.R. 33 
clarifies that church pension plans, like secular plans, may invest in 
collective trusts.
  On June 22, 2011, the House Committee on Financial Services by voice 
vote unanimously approved H.R. 33. This bill is similar to the original 
Church Pension Fairness Act bill, H.R. 1533, which the House passed in 
2003 by a vote of 397-0.
  Finally, the bill is supported by a number of organizations, 
including the Church Alliance; the General Board of Pension and Health 
Benefits of the United Methodist Church; the YMCA Retirement Fund; 
Everence Financial on behalf of the Mennonite Retirement Trust, the 
retirement plan for the Mennonite Church USA; the Seventh-Day Adventist 
Church in North America; Church Pension Group, on behalf of the Church 
Pension Fund, an independent agency of the Episcopal Church; the 
Ministers and Missionaries Benefit Board of the American Baptist 
Churches in the USA; the Board of Pensions of the Evangelical Lutheran 
Church in America; and the Pensions Board of the United Church of 
Christ.
  With that, I urge my colleagues to support the bill.
  I reserve the balance of my time.
  Mr. CARSON of Indiana. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, this bill would permit church pension plans to invest in 
collective trusts by correcting a technical error that resulted from 
the interaction of the securities laws and the Tax Code. In 2003, Mr. 
Speaker, Congress passed legislation that was intended to accomplish 
this goal, but the final law did not make the necessary corrections to 
the Securities Act of 1933. As such, IRS regulations currently prevent 
collective trusts from allowing investments by church plans.
  This bill will make it more cost-efficient for a religious 
organization to manage its pension plans by allowing the plan to manage 
its assets through a collective trust mechanism alongside the assets of 
other pension plans. Church pension plans will no longer have to be 
managed separately, which creates greater costs to the plan and its 
participants. The bill, Mr. Speaker, effectively provides another 
option for church pension plans and allows them to be managed much more 
like other kinds of pension plans, and will minimize costs.
  This bill is supported by the Church Alliance, a coalition of 37 
denominational benefit programs that provide pensions and health 
benefits to more than 1 million clergy across this country, lay 
workers, and their family members.
  Mr. Speaker, I urge adoption of this bill.
  Ms. JACKSON LEE of Texas. Mr. Speaker, I rise today in support of 
H.R. 33, ``The Church Plan Investment Clarification Act.'' This 
legislation will allow church pension plans to participate in 
collective trusts.
  Collective trusts allow pension plans to combine assets to invest in 
various stock and non stock options. This provides pension plans an 
opportunity to diversify investment portfolios, while sharing risks and 
transaction costs with other pension plans.
  Under current law, thousands of church pension plans are denied 
participation in collective trusts, rendering them unable to pool their 
assets and reap the benefits of collective buying power. Many churches, 
as a result, experience difficulties and incur expenses when 
diversifying pension plan investments.
  I support the Church Plan Investment Clarifications Act to amend the 
Securities Act of 1933. Amending current securities legislation will 
broaden the existing exemption to collective trusts to include church 
pension plans. This bill will clarify that clergy and lay workers are 
able to invest in collective trusts, despite their unique tax status. 
The Act affords church pension plans the same securities law treatment 
that is extended to governmental plans.
  Churches provide invaluable services to our communities. Across the 
Nation, church pension plans will benefit from this bipartisan bill, 
including churches in Houston, Texas, where I represent the 18th 
Congressional District. Churches such as the Bellfort Seventh Day 
Adventist Church, New Light Christian Church and the Community of Faith 
Church. This legislation will be of great significance to the Wheeler 
Avenue Baptist Church, the St. John Missionary Baptist Church on 
Dowling, the Brooks Hollow Baptist Church, and Houses of worship 
throughout our community and Nation.
  These faith institutions in Houston, as well as throughout the 
country, will no longer have to individually bear the burden of high 
fees on investment transactions for their retirement plans. The clergy 
and lay workers that will benefit from this legislation have spent 
their entire careers serving others. The least we can offer in return 
is the opportunity for these pension plans to pool their resources in 
order to decrease costs associated with funding their retirement plans.
  This bill is also supported by The Church Alliance, the Seventh Day 
Adventist Church, the YMCA Retirement Fund, the Church Pension Group, 
and others. I thank my friend from Illinois for sponsoring this 
important legislation, and urge my colleagues to work together to pass 
the Church Plan Investment Clarification Act.
  Mr. CARSON of Indiana. I yield back the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Illinois (Mrs. Biggert) that the House suspend the 
rules and pass the bill, H.R. 33, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mrs. BIGGERT. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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