I 

108TH CONGRESS 

2D SESSION H. R. 5365 

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. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 16, 2004 

Mr. ENGLISH (for himself and Mr. POMEROY) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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 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, 

3 SECTION 1. CERTAIN ARRANGEMENTS MAINTAINED BY 

4 THE YMCA RETIREMENT FUND TREATED AS 

5 CHURCH PLANS. 

6 (a) RETIREMENT PLANS.— 
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1 (1) IN GENERAL.—For purposes of sections 

2 401(a) and 403(b) of the Internal Revenue Code of 

3 1986, any retirement plan maintained by the YMCA 

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

5 treated as a church plan (within the meaning of sec6 tion 414(e) of such Code) which is maintained by an 

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

8 such Code. 

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

10 the case of a retirement plan described in paragraph 

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

12 salary reduction agreement— 

13 (A) such treatment shall not apply for pur14 poses of section 415(c)(7) of such Code, and 

15 (B) any account maintained for a partici16 pant or beneficiary of such plan shall be treated 

17 for purposes of such Code as a retirement in18 come account described in section 403(b)(9) of 

19 such Code, except that such account shall not, 

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

21 Code, be treated as a contract purchased by a 

22 church for purposes of section 403(b)(1)(D) of 

23 such Code. 

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

25 case of a retirement plan described in paragraph (1) 
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1 which is subject to the requirements of section 

2 401(a) of such Code— 

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

4 by the YMCA Retirement Fund)— 

5 (i) shall be treated for purposes of 

6 such Code as a defined contribution plan 

7 which is a money purchase pension plan, 

8 and 

9 (ii) shall be treated as having made 

10 an election under section 410(d) of such 

11 Code for plan years beginning after De12 cember 31, 2005, except that notwith13 standing the election— 

14 (I) nothing in the Employee Re15 tirement Income Security Act of 1974 

16 or such Code shall prohibit the YMCA 

17 Retirement Fund from commingling 

18 for investment purposes the assets of 

19 the electing plan with the assets of 

20 such Fund and with the assets of any 

21 employee benefit plan maintained by 

22 such Fund, and 

23 (II) nothing in this section shall 

24 be construed as subjecting any assets 

25 described in subclause (I), other than 
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1 the assets of the electing plan, to any 

2 provision of such Act, 

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

4 417 of such Code or section 205 of such Act, 

5 such plan may offer a lump-sum distribution 

6 option to participants who have not attained 

7 age 55 without offering such participants an 

8 annuity option, and 

9 (C) any account maintained for a partici10 pant or beneficiary of such plan shall, for pur11 poses of section 401(a)(9) of such Code, be 

12 treated as a retirement income account de13 scribed in section 403(b)(9) of such Code. 

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

15 For purposes of section 7702(j) of such Code, a re16 tirement plan described in paragraph (1) shall be 

17 treated as an arrangement described in section 

18 7702(j)(2). 

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

20 this section, the term ‘‘YMCA Retirement Fund’’ means 

21 the Young Men’s Christian Association Retirement Fund, 

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

23 which became law on April 30, 1921. 
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1 (c) EFFECTIVE DATE.—This section shall apply to 

2 plan years beginning after December 31, 2003. 

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