August 3, 1990
TO: PENSION COMMITTEE NO. 20-90
RE: S. 2902, CHURCH BENEFITS SIMPLICATION ACT OF 1990
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Attached is a copy of S. 2902, the Church Benefits
Simplification Act which was introduced by Senator Pryor in
conjunction with the Employee Benefits Simplification Act. (See
Institute Memorandum to Pension Committee No. 18-90, dated July
31, 1990.) Also attached is Senator Pryor's Record statement
regarding the legislation.
The bill is designed to codify the rules applicable to
church retirement plans and to ensure that church plans under
Code sections 401(a) and 403(b) are subject to the same rules.
The bill restores qualified voluntary employee contributions to
church plans, solves miscellaneous "aggregation" problems, enacts
ERISA vesting schedules, eliminates the "catch-up" contribution
rules applicable to church plans under Code section 403(b) and
addresses several other technical matters. The bill also
addresses church welfare benefit plan coverage and related rules.
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachments