[Congressional Record Volume 159, Number 67 (Tuesday, May 14, 2013)]
[Senate]
[Pages S3432-S3434]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. SANDERS (for himself and Mr. Burr):
S. 944. A bill to amend title 38, United States Code, to require
courses of education provided by public institutions of higher
education that are approved for purposes of the All-Volunteer Force
Educational Assistance Program and Post-9/11 Educational Assistance to
charge veterans tuition and fees at the in-State tuition rate, and for
other purposes; to the Committee on Veterans' Affairs.
Mr. SANDERS. Mr. President, today, as Chairman of the Senate
Committee on Veterans' Affairs, I am proud to introduce the Veterans'
Educational Transition Act of 2013.
My colleague and ranking member of the Senate Committee on Veterans'
Affairs, Senator Burr, joins me in introducing this important
legislation.
The Department of Defense estimates that approximately 250,000 to
300,000 servicemembers will separate annually for the next 4 years.
That is more than one million brave men and women who will face the
harsh reality of transitioning back to civilian life. Many of them will
elect to further their education by using the most lucrative benefit
afforded to them since WWII--the Post-9/11 GI Bill. Since 2009, the
Department of Veterans Affairs, VA, has paid nearly 1 million Post-9/11
GI Bill beneficiaries more than $28 billion.
The Post-9/11 GI Bill stands as a testament of our willingness to
invest in our newest generation of veterans. Unfortunately, this
investment often falls short of what they need to complete a post-
secondary education and successfully transition back to civilian life.
They deserve better.
Given the nature of our Armed Forces, servicemembers have little to
no say as to where they serve and where they reside during their
military service. Thus, when transitioning servicemembers consider what
educational institution they want to attend, many of them choose a
school in their home State or a State where they previously served.
I have heard from too many veterans that many of these public
educational institutions consider them out-of-State students. Given
that the Post-9/11 GI Bill only covers in-State tuition and fees for
public educational institutions, these veterans are left to cover the
difference in cost between the in-State tuition rate and the out-of-
State tuition rate. In some States, this difference can be more than
$20,000 per year. As a result, many of our Nation's veterans must use
loans to cover this difference and in the process become indebted with
large school loans that will take years to pay off.
I applaud the States that have taken initiative to assist our
veterans by recognizing them as in-State students for purposes of
attending a public educational institution. Yet, there are too many
States that still require transitioning veterans to meet stringent
residency requirements before they can be considered in-State students.
Recently separated veterans may not be able to meet such requirements
because of their military service, and once enrolled, they cannot
legally establish residency because of their status as full-time
students.
The Veterans Educational Transition Act of 2013 would require States,
as a condition for course approval under the Post-9/11 GI Bill or
Montgomery GI Bill, to recognize certain veterans and their dependents
using these education benefits as in-State students for purposes of
attending a public institution. The veteran must be within 2 years from
the date of discharge, and the individual using the benefit must live
in the State while attending the school.
This legislation would help our brave men and women who have
sacrificed so much in defense of our country transition to the civilian
workforce by giving them a fair shot at attaining their educational
goals without incurring an additional financial burden simply because
they chose to serve their country.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 944
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 ``Veterans' Educational
Transition Act of 2013''.
SEC. 2. APPROVAL OF COURSES OF EDUCATION PROVIDED BY PUBLIC
INSTITUTIONS OF HIGHER EDUCATION FOR PURPOSES
OF ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE
PROGRAM AND POST-9/11 EDUCATIONAL ASSISTANCE
CONDITIONAL ON IN-STATE TUITION RATE FOR
VETERANS.
(a) In General.--Section 3679 of title 38, United States
Code, is amended by adding at the end the following new
subsection:
``(c)(1) Notwithstanding any other provision of this
chapter and subject to paragraphs (3) through (5), the
Secretary shall disapprove a course of education provided by
a public institution of higher education to a covered
individual pursuing a course of education with educational
assistance under chapter 30 or 33 of this title while living
in the State in which the public institution of higher
education is located if the institution charges tuition and
fees for that course for the covered individual at a rate
that is higher than the rate the institution charges for
tuition and fees for that course for residents of the State
in which the institution is located, regardless of the
covered individual's State of residence.
``(2) For purposes of this subsection, a covered individual
is any individual as follows:
``(A) A veteran who was discharged or released from a
period of not fewer than 180 days of service in the active
military, naval, or air service less than two years before
the date of enrollment in the course concerned.
``(B) An individual who is entitled to assistance under
section 3311(b)(9) or 3319 of this title by virtue such
individual's relationship to a veteran described in
subparagraph (A).
``(3) It shall not be grounds to disapprove a course of
education under paragraph (1) if a public institution of
higher education requires a covered individual pursuing a
course of education at the institution to demonstrate an
intent to establish residency in
[[Page S3433]]
the State in which the institution is located in order to be
charged tuition and fees for that course at a rate that is
equal to or less than the rate the institution charges for
tuition and fees for that course for residents of the State.
``(4) The Secretary may waive such requirements of
paragraph (1) as the Secretary considers appropriate.
``(5) Disapproval under paragraph (1) shall apply only with
respect to educational assistance under chapters 30 and 33 of
this title.''.
(b) Effective Date.--Subsection (c) of section 3679 of
title 38, United States Code (as added by subsection (a) of
this section) shall apply with respect to educational
assistance provided for pursuit of programs of education
during academic terms that begin after July 1, 2015.
______
By Mr. CARDIN (for himself and Mr. Portman):
S. 952. A bill to amend the Internal Revenue Code of 1986 to clarify
the treatment of church pension plans, and for other purposes; to the
Committee on Finance.
Mr. CARDIN. Mr. President, today my colleague Senator Portman and I
are introducing this legislation, which refines the language included
in a previous bill, S. 3532, introduced in the 112th Congress by
Senator Hutchison and myself.
Our goal is to ensure the retirement security of our Nation's clergy,
church lay workers, and their families by resolving an unfortunate
application of our current pension rules on church pension
beneficiaries.
Churches and synagogues established some of the first pension plans
in the country, some dating back to the 18th century, and they are
designed to ensure that our pastors and lay staff have adequate
resources during their retirement years.
Church pensions are critically important compensation plans that help
support over one million clergy members across the country in their
retirement--particularly those who dedicated their careers to serving
in economically disadvantaged congregations.
Church plans developed structures and mechanisms that reflect the
differing church polities they serve and their unique status has been
recognized in law. However, recent IRS regulations governing 403(b)
pension programs and legislative changes have resulted in uncertainty
and compliance issues for church pension plans.
The Church Plan Clarification Act is straightforward, non-
controversial, and has bipartisan support. I hope we can work quickly
to provide clarity for these distinctive plans by enacting this
legislation and thereby ensuring that those who dedicate their lives to
religious service are not inappropriately and unfairly disadvantaged.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 952
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 Clarification
Act of 2013''.
SEC. 2. CHURCH PLAN CLARIFICATION.
(a) Application of Controlled Group Rules to Church
Plans.--
(1) In general.--Section 414(c) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes'', and
(B) by adding at the end the following new paragraph:
``(2) Church plans.--
``(A) General rule.--Except as provided in subparagraphs
(B) and (C), for purposes of this subsection and subsection
(m), an organization that is otherwise eligible to
participate in a church plan as defined in subsection (e)
shall not be aggregated with another such organization and
treated as a single employer with such other organization
unless--
``(i) one such organization provides directly or indirectly
at least 80 percent of the operating funds for the other
organization during the preceding tax year of the recipient
organization, and
``(ii) there is a degree of common management or
supervision between the organizations.
For purposes of this subparagraph, a degree of common
management or supervision exists only if the organization
providing the operating funds is directly involved in the
day-to-day operations of the other organization.
``(B) Nonqualified church-controlled organizations.--
Notwithstanding the provisions of subparagraph (A), for
purposes of this subsection and subsection (m), an
organization that is a nonqualified church-controlled
organization shall be aggregated with one or more other
nonqualified church-controlled organizations, or with an
organization that is not exempt from tax under section 501,
and treated as a single employer with such other
organizations, if at least 80 percent of the directors or
trustees of such organizations are either representatives of,
or directly or indirectly controlled by, the first
organization. For purposes of this subparagraph, a
`nonqualified church controlled organization' shall mean a
church-controlled organization described in section 501(c)(3)
that is not a qualified church-controlled organization
described in section 3121(w)(3)(B).
``(C) Permissive aggregation among church-related
organizations.--Organizations described in subparagraph (A)
may elect to be treated as under common control for purposes
of this subsection. Such election shall be made by the church
or convention or association of churches with which such
organizations are associated within the meaning of subsection
(e)(3)(D), or by an organization determined by such church or
convention or association of churches to be the appropriate
organization for making such election.
``(D) Permissive disaggregation of church-related
organizations.--For purposes of subparagraph (A), in the case
of a church plan (as defined in subsection (e)), any employer
may permissively disaggregate those entities that are not
churches (as defined in section 403(b)(12)(B)) separately
from those entities that are churches, even if such entities
maintain separate church plans.
``(E) Anti-abuse rule.--For purposes of subparagraphs (A)
and (B), the anti-abuse rule in Treasury Regulation section
1.414(c)-5(f) shall apply.''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning before, on, or after
the date of the enactment of this Act.
(b) Application of Contribution and Funding Limitations to
403(b) Grandfathered Defined Benefit Plans.--
(1) In general.--Section 251(e)(5) of the Tax Equity and
Fiscal Responsibility Act of 1982 (Public Law 97-248), is
amended--
(A) by striking ``403(b)(2)'' and inserting ``403(b)'', and
(B) by inserting before the period at the end the
following: ``, and shall be subject to the applicable
limitations of section 415(b) of such Code as if it were a
defined benefit plan under section 401(a) of such Code and
not the limitations of section 415(c) of such Code (relating
to limitation for defined contribution plans).''.
(2) Effective date.--The amendments made by this subsection
shall apply as if included in the enactment of the Tax Equity
and Fiscal Responsibility Act of 1982.
(c) Automatic Enrollment by Church Plans.--
(1) In general.--This subsection shall supersede any law of
a State that relates to wage, salary, or payroll payment,
collection, deduction, garnishment, assignment, or
withholding which would directly or indirectly prohibit or
restrict the inclusion in any church plan (as defined in this
subsection) of an automatic contribution arrangement.
(2) Definition of automatic contribution arrangement.--For
purposes of this subsection, the term ``automatic
contribution arrangement'' means an arrangement--
(A) under which a participant may elect to have the plan
sponsor make payments as contributions under the plan on
behalf of the participant, or to the participant directly in
cash, and
(B) under which a participant is treated as having elected
to have the plan sponsor make such contributions in an amount
equal to a uniform percentage of compensation provided under
the plan until the participant specifically elects not to
have such contributions made (or specifically elects to have
such contributions made at a different percentage).
(3) Notice requirements.--
(A) In general.--The plan administrator of an automatic
contribution arrangement shall, within a reasonable period
before such plan year, provide to each participant to whom
the arrangement applies for such plan year notice of the
participant's rights and obligations under the arrangement
which--
(i) is sufficiently accurate and comprehensive to apprise
the participant of such rights and obligations, and
(ii) is written in a manner calculated to be understood by
the average participant to whom the arrangement applies.
(B) Election requirements.--A notice shall not be treated
as meeting the requirements of subparagraph (A) with respect
to a participant unless--
(i) the notice includes an explanation of the participant's
right under the arrangement not to have elective
contributions made on the participant's behalf (or to elect
to have such contributions made at a different percentage),
(ii) the participant has a reasonable period of time, after
receipt of the notice described in clause (i) and before the
first elective contribution is made, to make such election,
and
(iii) the notice explains how contributions made under the
arrangement will be invested in the absence of any investment
election by the participant.
[[Page S3434]]
(4) Effective date.--This subsection shall take effect on
the date of the enactment of this Act.
(d) Allow Certain Plan Transfers and Mergers.--
(1) In general.--Section 414 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(y) Certain Plan Transfers and Mergers.--
``(1) In general.--Under rules prescribed by the Secretary,
except as provided in paragraph (2), no amount shall be
includible in gross income by reason of--
``(A) a transfer of all or a portion of the account balance
of a participant or beneficiary, whether or not vested, from
a plan described in section 401(a) or an annuity contract
described in section 403(b), which is a church plan described
in subsection (e) to an annuity contract described in section
403(b), if such plan and annuity contract are both maintained
by the same church or convention or association of churches,
``(B) a transfer of all or a portion of the account balance
of a participant or beneficiary, whether or not vested, from
an annuity contract described in section 403(b) to a plan
described in section 401(a) or an annuity contract described
in section 403(b), which is a church plan described in
subsection (e), if such plan and annuity contract are both
maintained by the same church or convention or association of
churches, or
``(C) a merger of a plan described in section 401(a), or an
annuity contract described in section 403(b), which is a
church plan described in subsection (e) with an annuity
contract described in section 403(b), if such plan and
annuity contract are both maintained by the same church or
convention or association of churches.
``(2) Limitation.--Paragraph (1) shall not apply to a
transfer or merger unless the participant's or beneficiary's
benefit immediately after the transfer or merger is equal to
or greater than the participant's or beneficiary's benefit
immediately before the transfer or merger.
``(3) Qualification.--A plan or annuity contract shall not
fail to be considered to be described in sections 401(a) or
403(b) merely because such plan or account engages in a
transfer or merger described in this subsection.
``(4) Definitions.--For purposes of this subsection:
``(A) Church.--The term `church' includes an organization
described in subparagraph (A) or (B)(ii) of subsection
(e)(3).
``(B) Annuity contract.--The term `annuity contract'
includes a custodial account described in section 403(b)(7)
and a retirement income account described in section
403(b)(9).''.
(2) Effective date.--The amendment made by this subsection
shall apply to transfers or mergers occurring after the date
of the enactment of this Act.
(e) Investments by Church Plans in Collective Trusts.--
(1) In general.--In the case of--
(A) a church plan (as defined in section 414(e) of the
Internal Revenue Code of 1986), including a plan described in
section 401(a) of such Code and a retirement income account
described in section 403(b)(9) of such Code, and
(B) an organization described in section 414(e)(3)(A) of
such Code the principal purpose or function of which is the
administration of such a plan or account,
the assets of such plan, account, or organization (including
any assets otherwise permitted to be commingled for
investment purposes with the assets of such a plan, account,
or organization) may be invested in a group trust otherwise
described in Internal Revenue Service Revenue Ruling 81-100
(as modified by Internal Revenue Service Revenue Rulings
2004-67 and 2011-1), or any subsequent revenue ruling that
supersedes or modifies such revenue ruling, without adversely
affecting the tax status of the group trust, such plan,
account, or organization, or any other plan or trust that
invests in the group trust.
(2) Effective date.--This subsection shall apply to
investments made after the date of the enactment of this Act.
____________________