Charitable Pension Flexibility Act of 2013 - Amends the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, to allow the sponsor of a multiple-employer defined benefit pension plan to elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after December 31, 2013. Permits revocation of such an election, however, only with the consent of the Secretary of the Treasury.
Allows a plan sponsor also to elect to apply specified requirements with respect to the shortfall amortization base in minimum funding standards for such plans.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2134 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2134
To provide an election for funding parity for charity-sponsored pension
plans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2013
Mrs. Brooks of Indiana (for herself and Mr. Kind) introduced the
following bill; which was referred to the Committee on Education and
the Workforce, and in addition to the Committee on Ways and Means, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide an election for funding parity for charity-sponsored pension
plans.
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 ``Charitable Pension Flexibility Act
of 2013''.
SEC. 2. ELECTION TO CEASE TO BE TREATED AS AN ELIGIBLE CHARITY PLAN.
(a) In General.--Subsection (d) of section 104 of the Pension
Protection Act of 2006, as added by section 202 of the Preservation of
Access to Care for Medicare Beneficiaries and Pension Relief Act of
2010, is amended by--
(1) striking ``For purposes of'' and inserting ``(1) In
general.--For purposes of'', and
(2) adding at the end the following:
``(2) Election not to be an eligible charity plan.--A plan
sponsor may elect for a plan to cease to be treated as an
eligible charity plan for plan years beginning after December
31, 2013. Such election shall be made at such time and in such
form and manner as shall be prescribed by the Secretary of the
Treasury. Any such election may be revoked only with the
consent of the Secretary of the Treasury.
``(3) Election to use funding options available to other
plan sponsors.--
``(A) In general.--A plan sponsor that makes the
election described in paragraph (2) may also elect for
a plan to apply the rules described in subparagraphs
(B), (C), and (D) for plan years beginning after
December 31, 2013. Such election shall be made at such
time and in such form and manner as shall be prescribed
by the Secretary of the Treasury. Any such election may
be revoked only with the consent of the Secretary of
the Treasury.
``(B) Applicable shortfall amortization bases.--
Under the rules described in this subparagraph, for the
first plan year beginning after December 31, 2013, a
plan has--
``(i) an 11-year shortfall amortization
base,
``(ii) a 12-year shortfall amortization
base, and
``(iii) a 7-year shortfall amortization
base.
``(C) Determination of installments.--Under the
rules described in this subparagraph, section
430(c)(2)(A) and (B) of the Internal Revenue Code of
1986 and section 303(c)(2)(A) and (B) of the Employee
Retirement Income Security Act of 1974 shall be
applied--
``(i) in the case of an 11-year shortfall
amortization base, by substituting `11-plan-
year period' for `7-plan-year period' wherever
it appears, and
``(ii) in the case a 12-year shortfall
amortization base, by substituting `12-plan-
year period' for `7-plan-year period' wherever
it appears.
``(D) Alternate required installments.--Under the
rules described in this subparagraph, section 430(c)(7)
of the Internal Revenue Code of 1986 and section
303(c)(7) of the Employee Retirement Income Security
Act of 1974 shall apply to a plan for which an election
has been made under subparagraph (A). Such provisions
shall apply in the following manner:
``(i) The first plan year beginning after
December 31, 2013, shall be treated as an
election year, and no other plan years shall be
so treated.
``(ii) All references in section 430(c)(7)
of such Code and in section 303(c)(7) of such
Act to `February 28, 2010' or `March 1, 2010'
shall be treated as references to `February 28,
2013' or `March 1, 2013', respectively.
``(E) 11-year shortfall amortization base.--For
purposes of this paragraph, the 11-year shortfall
amortization base is an amount, determined for the
first plan year beginning after December 31, 2013,
equal to the unamortized principal amount of the
shortfall amortization base (as defined in section
430(c)(3) of the Internal Revenue Code of 1986 and
section 303(c)(3) of the Employee Retirement Income
Security Act of 1974) that would have applied to the
plan for the first plan year beginning after December
31, 2009, if--
``(i) the plan had never been an eligible
charity plan.
``(ii) the plan sponsor had made the
election described in section 430(c)(2)(D)(i)
of the Internal Revenue Code of 1986 and in
section 303(c)(2)(D)(i) of the Employee
Retirement Income Security Act of 1974 to have
section 430(c)(2)(D)(iii) of such Code and
section 303(c)(2)(D)(iii) of such Act apply
with respect to the shortfall amortization base
for the first plan year beginning after
December 31, 2009, and
``(iii) no event had occurred under
paragraph (6) or (7) of section 430(c) of such
Code or paragraph (6) or (7) of section 303(c)
of such Act that, as of the first day of the
first plan year beginning after December 31,
2013, would have modified the shortfall
amortization base or the shortfall amortization
installments with respect to the first plan
year beginning after December 31, 2009.
``(F) 12-year shortfall amortization base.--For
purposes of this paragraph, the 12-year shortfall
amortization base is an amount, determined for the
first plan year beginning after December 31, 2013,
equal to the unamortized principal amount of the
shortfall amortization base (as defined in section
430(c)(3) of the Internal Revenue Code of 1986 and
section 303(c)(3) of the Employee Retirement Income
Security Act of 1974) that would have applied to the
plan for the first plan beginning after December 31,
2010, if--
``(i) the plan had never been an eligible
charity plan,
``(ii) the plan sponsor had made the
election described in section 430(c)(2)(D)(i)
of the Internal Revenue Code of 1986 and in
section 303(c)(2)(D)(i) of the Employee
Retirement Income Security Act of 1974 to have
section 430(c)(2)(D)(iii) of such Code and
section 303(c)(2)(D)(iii) of such Act apply
with respect to the shortfall amortization base
for the first plan year beginning after
December 31, 2010, and
``(iii) no event had occurred under
paragraph (6) or (7) of section 430(c) of such
Code or paragraph (6) or (7) of section 303(c)
of such Act that, as of the first day of the
first plan year beginning after December 31,
2013, would have modified the shortfall
amortization base or the shortfall amortization
installments with respect to the first plan
year beginning after December 31, 2010.
``(G) 7-year shortfall amortization base.--For
purposes of this paragraph, the 7-year shortfall
amortization base is an amount, determined for the
first plan year beginning after December 31, 2013,
equal to--
``(i) the shortfall amortization base for
the first plan year beginning after December
31, 2013, without regard to this paragraph,
minus
``(ii) the sum of the 11-year shortfall
amortization base and the 12-year shortfall
amortization base.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
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