Church Plan Parity and Entanglement Prevention Act of 1999
PL 106-244 (S.1309), enacted 07/10/2000

PUBLIC LAW 106-244—JULY 10, 2000 
114 STAT. 499 
Public Law 106-244 
106th Congress 
An Act 
To amend title I of the Employee Retirement Income Security Act of 1974 to 
provide for the preemption of State law in certain cases relating to certain 
chiirch plans. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. PURPOSE. 
The purpose of this Act is only to clarify the application to 
a church plan that is a welfare plan of State insurance laws that 
require or solely relate to licensing, solvency, insolvency, or the 
status of such plan as a single employer plan. 
SEC. 2 CLARIFICATION OF CHURCH WELFARE PLAN STATUS UNDER 
STATE INSURANCE LAW. 
(a) IN GENERAL.—^For purposes of determining the status of 
a church plan that is a welfare plan under provisions of a State 
insurance law described in subsection (b), such a church plan (and 
any trust under such plan) shall be deemed to be a plan sponsored 
by a single employer that reimburses costs from general church 
assets, or purchases insurance coverage with general church assets, 
or both. 
(b) STATE INSURANCE LAW.—A State insurance law described 
in this subsection is a law that— 
(1) requires a church plan, or an organization described 
in section 414(e)(3)(A) of the Internal Revenue Code of 1986 
and section 3(33)(C)(i) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(33)(C)(i)) to the extent 
that it is administering or funding such a plan, to be licensed; 
or 
(2) relates solely to the solvency or insolvency of a church 
plan (including participation in State guaranty funds and 
associations). 
(c) DEFINITIONS.—For purposes of this section: 
(1) CHURCH PLAN.—^The term "church plan" has the 
meaning given such term by section 414(e) of the Internal 
Revenue Code of 1986 and section 3(33) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(33)). 
(2) REIMBURSES COSTS FROM GENERAL CHURCH ASSETS.— 
The term "reimburses costs from general church assets" means 
engaging in an activity that is not the spreading of risk solely 
for the purposes of the provisions of State insurance laws 
described in subsection (b). 
(3) WELFARE PLAN.—^The term "welfare plan"— 
July 10, 2000 
[S. 1309] 
29 u s e 1144a 
note. 
29 u s e 1144a. 
114 STAT. 500 
PUBLIC LAW 106-244—JULY 10, 2000 
(A) means any church plan to the extent that such 
plan provides medical, surgical, or hospital care or benefits, 
or benefits in the event of sickness, accident, disability, 
death or unemployment, or vacation benefits, apprentice-
ship or other training programs, or day care centers, schol-
arship funds, or prepaid legal services; and 
(B) does not include any entity, such as a health insur-
ance issuer described in section 9832(b)(2) of the Internal 
Revenue Code of 1986 or a health maintenance organiza-
tion described in section 9832(b)(3) of such Code, or any 
other organization that does business with the church plan 
or organization sponsoring or maintaining such a plan. 
(d) ENFORCEMENT AUTHORITY.—^Notwithstanding any other 
provision of this section, for purposes of enforcing provisions of 
State insurance laws that apply to a church plan that is a welfare 
plan, the church plan shall be subject to State enforcement as 
if the church plan were an insurer licensed by the State. 
(e) APPLICATION OF SECTION.—Except as provided in subsection 
(d), the application of this section is limited to determining the 
status of a church plan that is a welfare plan under the provisions 
of State insurance laws described in subsection (b). This section 
shall not otherwise be construed to recharacterize the status, or 
modify or affect the rights, of any plan participant or beneficiary, 
including participants or beneficiaries who make plan contributions. 
Approved July 10, 2000. 
LEGISLATIVE HISTORY—S. 1309: 
CONGRESSIONAL RECORD: 
Vol. 145 (1999): Nov. 19, considered and passed Senate. 
Vol. 146 (2000): June 26, considered and passed House.