[Congressional Record Volume 161, Number 185 (Friday, December 18, 2015)]
[Extensions of Remarks]
[Page E1831]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES 
                        APPROPRIATIONS ACT, 2016

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                               speech of

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                      Thursday, December 17, 2015

  Mr. NEAL. Mr. Speaker, 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 laystaff have 
adequate resources during their retirement years.
  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 are 
critical to the functioning and operation of church plans and the 
retirement benefits they provide.
  While the corrections contained in PATH Act 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.

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