The New Pension Reform Law Affects Every Church
Provisions go far beyond pension plans.

Provisions go far beyond pension plans.

Article summary. In August Congress enacted the most comprehensive pension reform legislation in over 30 years. While the massive Pension Protection Act of 2006 is designed primarily to provide added security to employees enrolled in pension plans, it also addresses additional issues that affect church leaders, including some that will impact charitable contributions made to churches. Church leaders need to be familiar with these provisions. This article explains the provisions in the new law that are of most importance to churches, and illustrates them with examples.

Congress enacted a massive new 900-page pension reform bill designed to strengthen pension plans and reduce the need for taxpayer-funded bailouts of failed plans. While the main focus of the 'Pension Protection Act of 2006' is pension reform, the Act also includes a number of unrelated provisions of direct relevance to every church. Most notably, the Act imposes new requirements on the substantiation of charitable contributions. These requirements take effect immediately, and affect contributions made to churches.

Log In For Full Access

Interested in becoming a member? Learn more.

View All
from our store
2020 Church & Clergy Tax Guide

2020 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Church Compensation

Church Compensation

Learn the many pieces of employee compensation.
Charitable Contributions Bulletin Inserts

Charitable Contributions Bulletin Inserts

Help your members give more by answering their charitable giving and tax law questions.
Receipts for Donors

Receipts for Donors

16 letters and forms for providing receipts to donors for different donations.

ChurchSalary

ChurchSalary

Let ChurchSalary do the work. Get personalized compensation reports for staff and pastors.