I 
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 Work-
force, and in addition to the Committee on Ways and Means, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation 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 Representa-
tives 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 ELIGI-
BLE CHARITY PLAN. 
(a) IN GENERAL.—Subsection (d) of section 104 of 
the Pension Protection Act of 2006, as added by section 
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plan-year period’ for ‘7-plan-year period’ 
wherever it appears. 
‘‘(D) ALTERNATE
REQUIRED
INSTALL-
MENTS.—Under the rules described in this sub-
paragraph, 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 elec-
tion 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 
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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 Retire-
ment 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 eligi-
ble 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 Retire-
ment 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 sec-
tion 303(c) of such Act that, as of the first 
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day of the first plan year beginning after 
December 31, 2013, would have modified 
the shortfall amortization base or the 
shortfall amortization installments with re-
spect 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 Retire-
ment Income Security Act of 1974) that would 
have applied to the plan for the first plan be-
ginning after December 31, 2010, if— 
‘‘(i) the plan had never been an eligi-
ble 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 Retire-
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ment 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 sec-
tion 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 re-
spect 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 Decem-
ber 31, 2013, without regard to this para-
graph, minus 
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‘‘(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. 
Æ 
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