text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Charitable Pension Flexibility Act 
  of 2013''.
  
  SEC. 2. ELECTION TO CEASE TO BE TREATED AS AN ELIGIBLE CHARITY PLAN.
  
      (a) In General.--Subsection (d) of section 104 of the Pension 
  Protection Act of 2006, as added by section 202 of the Preservation of 
  Access to Care for Medicare Beneficiaries and Pension Relief Act of 
  2010, is amended by--
              (1) striking ``For purposes of'' and inserting ``(1) In 
          general.--For purposes of'', and
              (2) adding at the end the following:
              ``(2) Election not to be an eligible charity plan.--A plan 
          sponsor may elect for a plan to cease to be treated as an 
          eligible charity plan for plan years beginning after December 
          31, 2013. Such election shall be made at such time and in such 
          form and manner as shall be prescribed by the Secretary of the 
          Treasury. Any such election may be revoked only with the 
          consent of the Secretary of the Treasury.
              ``(3) Election to use funding options available to other 
          plan sponsors.--
                      ``(A) In general.--A plan sponsor that makes the 
                  election described in paragraph (2) may also elect for 
                  a plan to apply the rules described in subparagraphs 
                  (B), (C), and (D) for plan years beginning after 
                  December 31, 2013. Such election shall be made at such 
                  time and in such form and manner as shall be prescribed 
                  by the Secretary of the Treasury. Any such election may 
                  be revoked only with the consent of the Secretary of 
                  the Treasury.
                      ``(B) Applicable shortfall amortization bases.--
                  Under the rules described in this subparagraph, for the 
                  first plan year beginning after December 31, 2013, a 
                  plan has--
                              ``(i) an 11-year shortfall amortization 
                          base,
                              ``(ii) a 12-year shortfall amortization 
                          base, and
                              ``(iii) a 7-year shortfall amortization 
                          base.
                      ``(C) Determination of installments.--Under the 
                  rules described in this subparagraph, section 
                  430(c)(2)(A) and (B) of the Internal Revenue Code of 
                  1986 and section 303(c)(2)(A) and (B) of the Employee 
                  Retirement Income Security Act of 1974 shall be 
                  applied--
                              ``(i) in the case of an 11-year shortfall 
                          amortization base, by substituting `11-plan-
                          year period' for `7-plan-year period' wherever 
                          it appears, and
                              ``(ii) in the case a 12-year shortfall 
                          amortization base, by substituting `12-plan-
                          year period' for `7-plan-year period' wherever 
                          it appears.
                      ``(D) Alternate required installments.--Under the 
                  rules described in this subparagraph, section 430(c)(7) 
                  of the Internal Revenue Code of 1986 and section 
                  303(c)(7) of the Employee Retirement Income Security 
                  Act of 1974 shall apply to a plan for which an election 
                  has been made under subparagraph (A). Such provisions 
                  shall apply in the following manner:
                              ``(i) The first plan year beginning after 
                          December 31, 2013, shall be treated as an 
                          election year, and no other plan years shall be 
                          so treated.
                              ``(ii) All references in section 430(c)(7) 
                          of such Code and in section 303(c)(7) of such 
                          Act to `February 28, 2010' or `March 1, 2010' 
                          shall be treated as references to `February 28, 
                          2013' or `March 1, 2013', respectively.
                      ``(E) 11-year shortfall amortization base.--For 
                  purposes of this paragraph, the 11-year shortfall 
                  amortization base is an amount, determined for the 
                  first plan year beginning after December 31, 2013, 
                  equal to the unamortized principal amount of the 
                  shortfall amortization base (as defined in section 
                  430(c)(3) of the Internal Revenue Code of 1986 and 
                  section 303(c)(3) of the Employee Retirement Income 
                  Security Act of 1974) that would have applied to the 
                  plan for the first plan year beginning after December 
                  31, 2009, if--
                              ``(i) the plan had never been an eligible 
                          charity plan.
                              ``(ii) the plan sponsor had made the 
                          election described in section 430(c)(2)(D)(i) 
                          of the Internal Revenue Code of 1986 and in 
                          section 303(c)(2)(D)(i) of the Employee 
                          Retirement Income Security Act of 1974 to have 
                          section 430(c)(2)(D)(iii) of such Code and 
                          section 303(c)(2)(D)(iii) of such Act apply 
                          with respect to the shortfall amortization base 
                          for the first plan year beginning after 
                          December 31, 2009, and
                              ``(iii) no event had occurred under 
                          paragraph (6) or (7) of section 430(c) of such 
                          Code or paragraph (6) or (7) of section 303(c) 
                          of such Act that, as of the first day of the 
                          first plan year beginning after December 31, 
                          2013, would have modified the shortfall 
                          amortization base or the shortfall amortization 
                          installments with respect to the first plan 
                          year beginning after December 31, 2009.
                      ``(F) 12-year shortfall amortization base.--For 
                  purposes of this paragraph, the 12-year shortfall 
                  amortization base is an amount, determined for the 
                  first plan year beginning after December 31, 2013, 
                  equal to the unamortized principal amount of the 
                  shortfall amortization base (as defined in section 
                  430(c)(3) of the Internal Revenue Code of 1986 and 
                  section 303(c)(3) of the Employee Retirement Income 
                  Security Act of 1974) that would have applied to the 
                  plan for the first plan beginning after December 31, 
                  2010, if--
                              ``(i) the plan had never been an eligible 
                          charity plan,
                              ``(ii) the plan sponsor had made the 
                          election described in section 430(c)(2)(D)(i) 
                          of the Internal Revenue Code of 1986 and in 
                          section 303(c)(2)(D)(i) of the Employee 
                          Retirement Income Security Act of 1974 to have 
                          section 430(c)(2)(D)(iii) of such Code and 
                          section 303(c)(2)(D)(iii) of such Act apply 
                          with respect to the shortfall amortization base 
                          for the first plan year beginning after 
                          December 31, 2010, and
                              ``(iii) no event had occurred under 
                          paragraph (6) or (7) of section 430(c) of such 
                          Code or paragraph (6) or (7) of section 303(c) 
                          of such Act that, as of the first day of the 
                          first plan year beginning after December 31, 
                          2013, would have modified the shortfall 
                          amortization base or the shortfall amortization 
                          installments with respect to the first plan 
                          year beginning after December 31, 2010.
                      ``(G) 7-year shortfall amortization base.--For 
                  purposes of this paragraph, the 7-year shortfall 
                  amortization base is an amount, determined for the 
                  first plan year beginning after December 31, 2013, 
                  equal to--
                              ``(i) the shortfall amortization base for 
                          the first plan year beginning after December 
                          31, 2013, without regard to this paragraph, 
                          minus
                              ``(ii) the sum of the 11-year shortfall 
                          amortization base and the 12-year shortfall 
                          amortization base.''.
      (b) Effective Date.--The amendments made by this section shall take 
  effect on the date of the enactment of this Act.
target: Charitable Pension Flexibility Act of 2013 - Amends the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, to allow the sponsor of a multiple-employer defined benefit pension plan to elect for a plan to cease to be treated as an eligible charity plan for plan years beginning after December 31, 2013. Permits revocation of such an election, however, only with the consent of the Secretary of the Treasury.  Allows a plan sponsor also to elect to apply specified requirements with respect to the shortfall amortization base in minimum funding standards for such plans.
feat_title: Charitable Pension Flexibility Act of 2013