[Congressional Record Volume 161, Number 174 (Wednesday, December 2, 2015)]
[Senate]
[Page S8302]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CHURCH PLAN CLARIFICATION ACT

  Mr. CARDIN. Madam President, I am very pleased that the Senate may 
soon consider bipartisan legislation which I recently introduced with 
Senators Portman and Klobuchar: the Church Plan Clarification Act of 
2015, S. 2308. By introducing this bill and asking for a unanimous 
consent agreement regarding its passage, our goal is to ensure the 
retirement security of clergy, church lay workers, and their families 
across the country.
  The Church Plan Clarification Act addresses several unintended 
consequences resulting from the application of general tax and pension 
regulations to the unique structures of church pension plans. Churches 
and synagogues established some of the first pension plans in the 
country, several dating back to the 18th century, and they are designed 
to ensure that our clergy and lay staff have adequate resources during 
their retirement years.
  Church pensions are critically important compensation plans that help 
support over 1 million clergy members across the country in their 
retirement--particularly those who dedicated their careers to serving 
in economically disadvantaged congregations.
  Church plans are often structured to reflect the ecclesiastical 
teachings of their denomination. The resulting diversity of plan 
structures, coupled with the complexity of the legal and regulatory 
framework that applies to church plans, has led to the need for this 
legislation. The bill would correct several technical issues that, 
while small, are critical to the functioning and operation of church 
plans and the retirement benefits they provide.
  While the corrections contained in S. 2308 would be of tremendous 
help to church plans, I want to make clear that the bill does not 
affect the definition of ``church plan'' under the Internal Revenue 
Code or Employee Retirement Income Security Act of 1974, ERISA. In 
particular, no inference is intended by this legislation regarding the 
statutory requirements a pension plan must meet to be considered or 
treated as a ``church plan'' under IRC section 414(e) of the Internal 
Revenue Code and section 3(33) of ERISA, and the bill has no bearing on 
the interpretation of those sections. Rather, the Church Plan 
Clarification Act is simply about fixing the rules that govern how 
church plans operate and serve their participants.
  Again, the Church Plan Clarification Act is targeted, 
noncontroversial, and has broad bipartisan and bicameral support. I 
hope we can work quickly to provide clarity for these plans by enacting 
this legislation and thereby ensuring that those who dedicate their 
lives to religious service are not inappropriately and unfairly 
disadvantaged.

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