[Congressional Record (Bound Edition), Volume 149 (2003), Part 6]
[House]
[Pages 7957-7958]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    CHURCH PENSION PLAN FAIRNESS ACT

  The SPEAKER pro tempore (Ms. Ginny Brown-Waite of Florida). Under a 
previous order of the House, the gentlewoman from Illinois (Mrs. 
Biggert) is recognized for 5 minutes.
  Mrs. BIGGERT. Madam Speaker, I rise today to introduce legislation 
that amends our Nation's security laws in order to end discrimination 
against church pension programs.
  One thing most Americans understand is the importance of saving money 
to ensure financial security after they retire. Just as important, they 
understand that investing in an employer-sponsored pension plan is a 
great way to help achieve this goal. America's clergy are no less 
interested in their retirement. In fact, for thousands of dedicated men 
and women of our clergy, pension plans are just as important, if not 
more so, as they are to members of the laity.
  Yet for far too long, Congress has unintentionally failed to update 
church pension laws making it more difficult for clergy and other 
church employees to maximize their retirement savings.
  Madam Speaker, one arcane, yet important, provision of our security 
laws allows corporate and other secular pension plans to band together 
into what are called collective trusts. These trusts allow pension 
plans to pool their assets for investment purposes in various stock and 
nonstock interests. For example, some collective trusts invest in real 
estate or private investment opportunities. They represent a way for 
pension plans to diversify their investments and to share the risks and 
transaction costs with other pension plans.
  Collective trusts are not the problem. The problem is current law 
prohibits the Christian Brothers Church in Romeoville, Illinois, along 
with thousands of other church pension plans across the country, from 
participating in collective trusts. As a result, church pension plans 
cannot pool their assets and reap the benefits of collecting buying 
power. My bill is intended to correct this inequity.
  There are three other points that are important for me to make: 
first, the SEC requires that collective trusts have sole management and 
control over the assets that are invested; second, nothing in this 
legislation is intended to alter the traditional SEC interpretation 
that the financial institution is responsible for exercising hands-on 
control over the collective trust; and, third, this measure does not in 
any way effect Tax Code provisions governing the treatment of pension 
plans, including the requirement that a church plan must be maintained 
by a church or eligible church-affiliated organization.
  My bill allows church plan assets to be included in collective trust 
funds that also include assets of private employee and governmental 
plans.

[[Page 7958]]

  Madam Speaker, there is no sound policy reason for our security laws 
to exclude church plan participation in specifically tailored pension 
plan investments. The Church Pension Plan Fairness Act is a reasonable, 
measured, and fair response to many of the concerns raised by clergy 
and other church employees around the country.
  I want to thank my distinguished colleague and friend from Tennessee 
(Mr. Ford) for his strong support in co-sponsorship of this 
legislation, and I urge my colleagues to join us in supporting this 
bill. Our clergy deserves no less than the millions of other working 
men and women of America.

                          ____________________