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.