102 
graph (2) and inserting ‘‘accumulated 
funding deficiency or CSEC accumulated 
funding deficiency’’, 
(ii) by striking ‘‘accumulated funding 
deficiency or unpaid minimum required 
contribution’’ each place it appears in 
paragraph (3) and inserting ‘‘accumulated 
funding deficiency, CSEC accumulated 
funding deficiency, or unpaid minimum re-
quired contribution’’, and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(5) CSEC ACCUMULATED
FUNDING
DEFI-
CIENCY.—The term ‘CSEC accumulated funding de-
ficiency’ means the accumulated funding deficiency 
determined under section 433.’’. 
(D) Paragraph (1) of section 4971(d) of 
such Code is amended by striking ‘‘accumulated 
funding deficiency or unpaid minimum required 
contribution’’ and inserting ‘‘accumulated fund-
ing deficiency, CSEC accumulated funding defi-
ciency, or unpaid minimum required contribu-
tion’’. 
(E) Subsection (f) of section 4971 of such 
Code is amended—
103 
(i) by striking ‘‘430(j)(4)’’ in para-
graph (1) and inserting ‘‘430(j)(4) or 
433(f)’’, 
(ii) by striking ‘‘430(j)’’ in paragraph 
(1)(B) and inserting ‘‘430(j) or 433(f), 
whichever is applicable’’, and 
(iii) by striking ‘‘412(m)(5)’’ in para-
graph (3)(A) and inserting ‘‘430(j) or 
433(f), whichever is applicable’’. 
(9) EXCISE TAX ON FAILURE TO ADOPT FUND-
ING
RESTORATION
PLAN.—Section 4971 of such 
Code is amended by redesignating subsection (h) as 
subsection (i), and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) FAILURE
OF
A CSEC PLAN SPONSOR TO 
ADOPT FUNDING RESTORATION PLAN.— 
‘‘(1) IN GENERAL.—In the case of a CSEC plan 
that is in funding restoration status (within the 
meaning of section 433(j)(5)(A)), there is hereby im-
posed a tax on the failure of such plan to adopt a 
funding restoration plan within the time prescribed 
under section 433(j)(3). 
‘‘(2) AMOUNT OF TAX.—The amount of the tax 
imposed under paragraph (1) with respect to any 
plan sponsor for any taxable year shall be the
104 
amount equal to $100 multiplied by the number of 
days during the taxable year which are included in 
the period beginning on the day following the close 
of the 180-day period described in section 433(j)(3) 
and ending on the day on which the funding restora-
tion plan is adopted. 
‘‘(3) WAIVER BY SECRETARY.—In the case of a 
failure described in paragraph (1) which the Sec-
retary determines is due to reasonable cause and not 
to willful neglect, the Secretary may waive a portion 
or all of the tax imposed by such paragraph. 
‘‘(4) LIABILITY FOR TAX.—The tax imposed by 
paragraph (1) shall be paid by the plan sponsor 
(within the meaning of section 433(j)(5)(E)).’’. 
(10) REPORTING.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 6059(b) of such Code is amended by strik-
ing ‘‘430,’’ and inserting ‘‘430, the accumulated 
funding deficiency under section 433,’’. 
(B) ASSUMPTIONS.—Subparagraph (B) of 
section 6059(b)(3) of such Code is amended by 
striking ‘‘430(h)(1) or 431(c)(3)’’ and inserting 
‘‘430(h)(1), 431(c)(3), or 433(c)(3)’’.
105 
SEC. 203. ELECTION NOT TO BE TREATED AS A CSEC PLAN. 
(a) IN GENERAL.—Section 414(y) of the Internal 
Revenue Code of 1986, as added by section 201, is amend-
ed by adding at the end the following new paragraph: 
‘‘(3) ELECTION.— 
‘‘(A) IN GENERAL.—If a plan falls within 
the definition of a CSEC plan under this sub-
section (without regard to this paragraph), such 
plan shall be a CSEC plan unless the plan 
sponsor elects not later than the close of the 
first plan year of the plan beginning after De-
cember 31, 2013, not to be treated as a CSEC 
plan. An election under the preceding sentence 
shall take effect for such plan year and, once 
made, may be revoked only with the consent of 
the Secretary. 
‘‘(B) SPECIAL RULE.—If a plan described 
in subparagraph (A) is treated as a CSEC plan, 
section 104 of the Pension Protection Act of 
2006, as amended by the Preservation of Ac-
cess to Care for Medicare Beneficiaries and 
Pension Relief Act of 2010, shall cease to apply 
to such plan as of the first date as of which 
such plan is treated as a CSEC plan.’’.
106 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply as of the date of enactment of this 
Act. 
Passed the House of Representatives March 24, 
2014. 
Attest: 
Clerk.
113TH CONGRESS 
2D SESSION 
H. R. 4275 
AN ACT 
To amend the Employee Retirement Income Secu-
rity Act of 1974 and the Internal Revenue Code 
of 1986 to provide for cooperative and small em-
ployer charity pension plans.