(c) EFFECTIVE DATE.—The amendment made by
this section shall apply to years beginning after March 31,
1984.
SEC. 14. RULE RELATING TO INVESTMENT IN CONTRACT
NOT TO APPLY TO FOREIGN MISSIONARIES.
(a) IN GENERAL.—The last sentence of section 72(f)
is amended to read as follows: ‘‘The preceding sentence
shall not apply to amounts which were contributed by the
employer, as determined under regulations prescribed by
the Secretary, to provide pension or annuity credits, to
the extent such credits are attributable to services per-
formed before January 1, 1963, and are provided pursu-
ant to pension or annuity plan provisions in existence on
March 12, 1962, and on that date applicable to such serv-
ices, or to provide pension or annuity credits for foreign
missionaries 
(within 
the 
meaning 
of 
section
403(b)(2)(D)(iii)).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1993.
SEC. 15. REPEAL OF ELECTIVE DEFERRAL CATCH-UP LIMI-
TATION 
FOR 
RETIREMENT 
INCOME 
AC-
COUNTS.
(a) 
IN
GENERAL.—Clause 
(iii) 
of 
section
402(g)(8)(A) is amended to read as follows:
‘‘(iii) except in the case of elective de-
ferrals under a retirement income account
described in section 403(b)(9), the excess
of $5,000 multiplied by the number of
years of service of the employee with the
qualified organization over the employer
contributions described in paragraph (3)
made by the organization on behalf of such
employee for prior taxable years (deter-
mined in the manner prescribed by the
Secretary).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective as if included in the provision
of the Tax Reform Act of 1986 to which such amendment
relates.
SEC. 16. CHURCH PLANS MAY ANNUITIZE BENEFITS.
(a) IN GENERAL.—A retirement income account de-
scribed in section 403(b)(9) of the Internal Revenue Code
of 1986, a church plan (within the meaning of section
414(e) of such Code) that is a plan described in section
401(a) or 401A of such Code, or an account which consists
of qualifed voluntary employee contributions described in
section 219(e)(2) of such Code (as in effect before the date
of the enactment of the Tax Reform Act of 1986) and
earnings thereon, shall not fail to be described in such sec-
tions merely because it pays benefits to participants (and
their beneficiaries) from a pool of assets administered or
funded 
by 
an 
organization 
described 
in 
section
414(e)(3)(A) of such Code, rather than through the pur-
chase of annuities from an insurance company.
(b) EFFECTIVE DATE.—This provision shall be effec-
tive for years beginning before, on, or after December 31,
1993.
SEC. 17. CHURCH PLANS MAY INCREASE BENEFIT PAY-
MENTS.
(a) IN GENERAL.—A retirement income account de-
scribed in section 403(b)(9) of the Internal Revenue Code
of 1986, a church plan (within the meaning of section
414(e) of such Code) that is a plan described in section
401(a) or 401A of such Code, or an account which consists
of qualified voluntary employee contributions described in
section 219(e)(2) of such Code (as in effect before the date
of the enactment of the Tax Reform Act of 1986) and
earnings thereon, shall not fail to be described in such sec-
tions merely because it provides benefit payments to par-
ticipants (and their beneficiaries)—
(1) to take into account the investment per-
formance of the underlying assets or favorable inter-
est or mortality experience, or
(2) that increase in an amount not in excess of
5 percent per year.
(b) EFFECTIVE DATE.—This provision shall be effec-
tive for years beginning before, on, or after December 31,
1993.
SEC. 18. RULES APPLICABLE TO SELF-INSURED MEDICAL
REIMBURSEMENT PLANS NOT TO APPLY TO
PLANS OF CHURCHES.
(a) IN GENERAL.—Section 105(h) is amended by
adding the following new paragraph:
‘‘(11) PLANS OF CHURCHES.—This subsection
shall not apply to a plan maintained by a church
(within the meaning of section 401A(c)(1)).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for years beginning before,
on, or after December 31, 1993.
SEC. 19. RETIREMENT BENEFITS OF MINISTERS NOT SUB-
JECT TO TAX ON NET EARNINGS FROM SELF-
EMPLOYMENT.
(a) IN GENERAL.—Section 1402(a)(8) (defining net
earning from self-employment) is amended by inserting ‘‘,
but shall not include in such net earning from self-employ-
ment any retirement benefit received by such individual
from a church plan (as defined in section 414(e))’’ before
the semicolon at the end.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning before, on, or
after December 31, 1993.
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HR 3970 IH——2
HR 3970 IH——3