PATH Act Church Plan Clarification (December 21, 2018)


The Church Alliance submitted a letter to the Internal Revenue Service in response to a request for comment on a section of the Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”) relating to church plans. Among other things, the letter requests: (1) clarification that certain guidance applicable to ERISA plans will operate as a safe harbor for church plans providing automatic enrollment arrangements, (2) guidance facilitating certain transfers and mergers relating to church plans, and (3) revision of pre-PATH Act Revenue Rulings to harmonize with the PATH Act provision enabling church plan investments in collective trusts. The letter also clarifies the understanding of the Church Alliance of the circumstances in which recordkeeping is required with respect to revocation of an election to aggregate or disaggregate church-related organizations for controlled group purposes.