Charitable Pension Flexibility Act of 2013

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.

Summary: 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.