gated with the employees of such organizations but
for the election provided by paragraph (3).
‘‘(3) ELECTION TO DISAGGREGATE.—The provi-
sions of this subsection shall apply if a church-relat-
ed organization makes an election for itself and
other church-related organizations (in such form and
manner as the Secretary may by regulations pre-
scribe) on or before the last day of the first plan
year beginning on or after January 1, 1996.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective as if included in the provi-
sions of Public Law 93–406, Public Law 98–369, and
Public Law 99–514 to which such amendment relates.
SEC. 9. SELF-EMPLOYED MINISTERS TREATED AS EMPLOY-
EES FOR PURPOSES OF CERTAIN WELFARE
BENEFIT PLANS AND RETIREMENT INCOME
ACCOUNTS.
(a) IN GENERAL.—Section 7701(a)(20) is amended
to read as follows:
‘‘(20) EMPLOYEE.—For the purpose of apply-
ing the provisions of section 79 with respect to
group-term life insurance purchased for employees,
for the purpose of applying the provisions of sections
104, 105, and 106 with respect to accident or health
insurance or accident or health plans, for the pur-
pose of applying the provisions of section 101(b)
with respect to employees’ death benefits, for the
purpose of applying the provisions of subtitle A with
respect to contributions to or under a stock bonus,
pension, profit-sharing, or annuity plan, and with re-
spect to distributions under such a plan, or by a
trust forming part of such a plan, and for purposes
of applying section 125 with respect to cafeteria
plans, the term ‘employee’ shall include a duly or-
dained, commissioned, or licensed minister of a
church in the exercise of his or her ministry who is
a self-employed individual (within the meaning of
section 401(c)(1)(B)) or a full-time life insurance
salesman who is considered an employee for the pur-
pose of chapter 21, or in the case of services per-
formed before January 1, 1951, who would be con-
sidered an employee if his services were performed
during 1951.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for years beginning before,
on, or after December 31, 1993.
SEC. 10. DEDUCTIONS FOR CONTRIBUTIONS BY CERTAIN
MINISTERS TO RETIREMENT INCOME AC-
COUNTS.
(a) IN GENERAL.—Section 404(a) is amended by
adding the following new paragraph:
‘‘(10) CONTRIBUTIONS BY CERTAIN MINISTERS
TO RETIREMENT INCOME ACCOUNTS.—In case con-
tributions are made by a minister described in sec-
tion 403(b)(13)(F) to a retirement income account
described in section 403(b)(9) and not by a person
other than such minister, such contributions shall be
treated as made to a trust which is exempt from tax
under section 501(a) which is part of a plan which
is described in section 401(a) and shall be deductible
under this subsection to the extent such contribu-
tions do not exceed the exclusion allowance of such
minister, determined under section 403(b)(2).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for years beginning after De-
cember 31, 1993.
SEC. 11. MODIFICATION FOR CHURCH PLANS OF RULES
FOR PLANS MAINTAINED BY MORE THAN ONE
EMPLOYER.
(a) IN GENERAL.—Section 413(c) is amended by
adding the following new paragraph:
‘‘(8) CHURCH
PLANS
MAINTAINED
BY
MORE
THAN ONE EMPLOYER.—A church plan (within the
meaning of section 414(e)) maintained by more than
one employer, and with respect to which the election
provided by section 410(d) has not been made,
which commingles assets solely for purposes of in-
vestment and pooling for mortality experience to
provide to participants annuities computed with ref-
erence to the balance in the participants’ accounts
when such accounts become payable shall not be
treated as a single plan maintained by more than
one employer under this subsection. The rules pro-
vided by this paragraph shall apply for purposes of
applying section 403(b)(12) to such church plan.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective for years beginning before,
on, or after December 31, 1993.
SEC. 12. SECTION 457 NOT TO APPLY TO DEFERRED COM-
PENSATION OF A CHURCH.
(a) IN GENERAL.—Paragraph (13) of section 457(e)
is amended to read as follows:
‘‘(13) SPECIAL
RULE
FOR
CHURCHES.—The
term ‘eligible employer’ shall not include a church
(within the meaning of section 401A(c)(1)).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1978.
SEC. 13. CHURCH PLAN MODIFICATION TO SEPARATE AC-
COUNT REQUIREMENT OF SECTION 401(h).
(a) EXCEPTION TO SEPARATE ACCOUNT REQUIRE-
MENT.—Section 401(h) is amended by adding the follow-
ing new sentence at the end thereof: ‘‘Notwithstanding the
preceding sentence, in the case of a pension or annuity
plan that is a church plan (within the meaning of section
414(e)) which is maintained by more than one employer,
paragraph (6) shall not apply to an employee who is a
key employee for purposes of section 416 solely because
such employee is described in section 416(i)(1)(A)(i) (re-
lating to officers having an annual compensation greater
than 150 percent of the amount in effect under section
415(c)(1)(A)).’’
(b) APPLICATION
OF
SECTION
415(l).—Section
415(l)(1) is amended to read as follows:
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the following shall be treated as an annual ad-
dition to a defined contribution plan for purposes of
subsection (c):
‘‘(A) Contributions allocated to any indi-
vidual medical account which is part of a pen-
sion or annuity plan.
‘‘(B) The actuarially determined amount of
prefunding for the insurance value of benefits
which are—
‘‘(i) described in section 401(h);
‘‘(ii) paid under a pension or annuity
plan that is a church plan (within the
meaning of section 414(e));
‘‘(iii) paid under a plan maintained by
more than one employer; and
‘‘(iv) payable solely to an employee
who is a key employee for purposes of sec-
tion 415 solely because such employee is
described in section 416(i)(1)(A)(i) (relat-
ing to officers having an annual compensa-
tion greater than 150 percent of the
amount 
in 
effect 
under 
section
415(c)(1)(A)), his spouse, or his depend-
ents.
Subparagraph (B) of section (c)(1) shall not
apply to any amount treated as an annual addi-
tion under the preceding sentence.’’