II 

108TH CONGRESS 

2D SESSION H. R. 5365

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2004

Received 

AN ACT

To treat certain arrangements maintained by the YMCA 

Retirement Fund as church plans for the purposes of 

certain provisions of the Internal Revenue Code of 1986, 

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. CERTAIN ARRANGEMENTS MAINTAINED BY 

2 THE YMCA RETIREMENT FUND TREATED AS 

3 CHURCH PLANS. 

4 (a) RETIREMENT PLANS.—

5 (1) IN GENERAL.—For purposes of sections 

6 401(a) and 403(b) of the Internal Revenue Code of 

7 1986, any retirement plan maintained by the YMCA 

8 Retirement Fund as of January 1, 2003, shall be 

9 treated as a church plan (within the meaning of sec10 tion 414(e) of such Code) which is maintained by an 

11 organization described in section 414(e)(3)(A) of 

12 such Code. 

13 (2) TAX-DEFERRED RETIREMENT PLAN.—In 

14 the case of a retirement plan described in paragraph 

15 (1) which allows contributions to be made under a 

16 salary reduction agreement— 

17 (A) such treatment shall not apply for pur18 poses of section 415(c)(7) of such Code, and 

19 (B) any account maintained for a partici20 pant or beneficiary of such plan shall be treated 

21 for purposes of such Code as a retirement in22 come account described in section 403(b)(9) of 

23 such Code, except that such account shall not, 

24 for purposes of section 403(b)(12) of such 

25 Code, be treated as a contract purchased by a 
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1 church for purposes of section 403(b)(1)(D) of 

2 such Code. 

3 (3) MONEY PURCHASE PENSION PLAN.—In the 

4 case of a retirement plan described in paragraph (1) 

5 which is subject to the requirements of section 

6 401(a) of such Code— 

7 (A) such plan (but not any reserves held 

8 by the YMCA Retirement Fund)— 

9 (i) shall be treated for purposes of 

10 such Code as a defined contribution plan 

11 which is a money purchase pension plan, 

12 and 

13 (ii) shall be treated as having made 

14 an election under section 410(d) of such 

15 Code for plan years beginning after De16 cember 31, 2005, except that notwith17 standing the election— 

18 (I) nothing in the Employee Re19 tirement Income Security Act of 1974 

20 or such Code shall prohibit the YMCA 

21 Retirement Fund from commingling 

22 for investment purposes the assets of 

23 the electing plan with the assets of 

24 such Fund and with the assets of any 
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1 employee benefit plan maintained by 

2 such Fund, and 

3 (II) nothing in this section shall 

4 be construed as subjecting any assets 

5 described in subclause (I), other than 

6 the assets of the electing plan, to any 

7 provision of such Act, 

8 (B) notwithstanding section 401(a)(11) or 

9 417 of such Code or section 205 of such Act, 

10 such plan may offer a lump-sum distribution 

11 option to participants who have not attained 

12 age 55 without offering such participants an 

13 annuity option, and 

14 (C) any account maintained for a partici15 pant or beneficiary of such plan shall, for pur16 poses of section 401(a)(9) of such Code, be 

17 treated as a retirement income account de18 scribed in section 403(b)(9) of such Code. 

19 (4) SELF-FUNDED DEATH BENEFIT PLAN.—

20 For purposes of section 7702(j) of such Code, a re21 tirement plan described in paragraph (1) shall be 

22 treated as an arrangement described in section 

23 7702(j)(2). 

24 (b) YMCA RETIREMENT FUND.—For purposes of 

25 this section, the term ‘‘YMCA Retirement Fund’’ means 
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1 the Young Men’s Christian Association Retirement Fund, 

2 a corporation created by an Act of the State of New York 

3 which became law on April 30, 1921. 

4 (c) EFFECTIVE DATE.—This section shall apply to 

5 plan years beginning after December 31, 2003.

Passed the House of Representatives November 19, 

2004. 

Attest: JEFF TRANDAHL, 

Clerk.