November 20, 1981 EXTENSIONS OF REMARKS 28631 EXTENSIONS OF REMARKS AMEND INTERNAL REVENUE is associated in providing retirement 0974). We made these elections avail­ CODE benefits for its ministers and lay em­ able to employees of educational orga­ ployees and is, thus, entitled to classi­ nizations, hospitals, and home health fication as an integral and inseparable service agencies but completely ig­ HON. BARBER B. CONABLE, JR. part of the church. nored churches. We failed to realize OF Since 1958, the "exclusion allow­ that churches also use section 403(b) IN THE HOUSE OF REPRESENTATIVES ance" in section 403(b)(2) has limited annuities extensively. We believe Friday, November 20, 1981 the amount that an employer can con­ church employees need the elections tribute to an annuity for an employee as much as those classes of employees e Mr. CONABLE. Mr. Speaker, with under this section without income tax who now use them. It would be unfair my distinguished colleague, JAMES C. consequences. That amount is the to lock out the very kinds of people WRIGHT, of , I today reintroduce excess of ( 1) 20 percent of the employ­ the law was designed to protect. legislation to amend several provisions ee's includible compensation for the Few people are more poorly compen­ of the Internal Revenue Code that un­ year times the employee's years of sated than ministers and lay employ­ fairly deny reasonable retirement ben­ service with his or her employer over ees. A minister begins his career at a efits to the majority of clergymen and (2) the aggregate amounts contributed salary of only $5,000 to $10,000. Rarely lay employees of our Nation's church­ in prior years that have been excluded will his salary exceed $15,000, or es. Victims of an unfortunate over­ from income. Before the exclusion al­ $20,000-and then only at the end of sight in our tax laws, these church lowance, there were no limitations on his career. Lay employees generally servants are inexplicably ignored by contributions to section 403(b) annu­ earn even less. Missionaries also re­ Internal Revenue Code provisions that ities. The exclusion allowance was de­ ceive low salaries. permit reasonable contributions to the signed to prevent then-existing abuses A typical pension of a minister is retirement annuities of certain other by certain part-time employees. only $2,000 to $3,000 a year. Lay em­ categories of employees who histori­ Senate Report No. 1983, 85th Con­ ployees retire on less. These inad­ cally are also not well compensated. gress, 2d session 36 0958). The exclu­ equate pensions will continue if we do The bill corrects this omission by sion allowance was also designed to not amend the limitations we enacted granting ministers and lay employees permit larger-than-usual retirement in 1974. the same right of contribution to their annuity contributions late in the em­ Sections 403(b) and 415 create many retirement annuities now enjoyed by ployee's career to compensate for the problems for church employees. The these other classes of poorly compen­ years when contributions were low or compensation of many of them, par­ sate pensions. It represents a large not made at all. These are called ticularly foreign missionaries, is so low step toward assuring our ministers and "catchup" contributions. The capacity that even the exclusion allowance lay employess of adequate retirement to make catchup contributions is ex­ makes worthwhile contributions im­ allowances. We invite our colleagues to tremely important to persons who are possible. They spend their lives in the join with us in sponsoring this legisla­ poorly compensated. mission field and expect to retire in tion. In 1974, we added a further, and per­ the United States. But the combina­ Our ministers and lay employees haps unnecessary, limitation on contri­ tion of the exclusion allowance based depend heavily on annuities described butions to section 403(b) annuities by on compensation and the high cost of in section 403(b) of the Code for their enacting section 415. We arbitrarily living here makes retirement very dif­ retirement benefits. Our churches be­ classified section 403(b) annuities as ficult for these persons. lieve such annuity programs are per­ defined contribution plans, whether or Second, because ministers and lay fect retirement systems. Most denomi­ not they fit that description, and re­ employees are so poorly compensated, nations have used them for decades­ quired that contributions be no great­ catchup contributions are vital if they some for over a century. They are er than the limits under section are to be assured adequate retirement completely portable and let church 415(c)0). This further limitation on benefits. But the 25-percent limitation workers move freely within their de­ employer contributions to section renders adequate catchup contribu­ nominations without losing retirement 403(b) annuities is the lesser of $25,000 tions impossible. During the first years benefits. (adjusted by the increases in the cost of a minister's career, contributions Some of the section 403(b) annuity of living) or 25 percent of the partici­ may be a function of salary and, hence arrangements of the churches are de­ pant's compensation. When we im­ be very small. The minister may be fined contribution programs, while posed those limitations, we realized employed by a new or struggling others are defined programs. Section that the 25-percent-of-compensation church or church agency that cannot 403(b) imposes no requirement that limitation would seriously hinder the afford any plan contributions. Under the arrangement be of either kind. ability of poorly compensated employ­ section 403(b), the minister may take a Most churches do not purchase retire­ ees to make catchup contributions. So reduction in salary to permit his em­ ment annuities from insurance compa­ we devised in section 415(c)(4) certain ployer to purchase annuity benefits. nies. They administer and fund their elections a participant could make to But salary reduction is usually imprac­ own annuity programs. Some denomi­ override the 25-percent ceiling, except tical because for many years he will nations fund their retirement annu­ in the instance of the "(C)" election in need every penny he earns to feed and ities internally. But most have formed section 415(c)(4), which substitutes clothe his family, and educate his chil­ organizations called pension boards to the $25,000-25-percent limitation for dren. When a minister has reached administer and fund their annuity the exclusion allowance. The elections age 50 or so, his compensation may in­ programs. These pension boards are permit relatively high contributions crease enough for him to purchase ad­ usually separately incorporated to pro­ late in the career of an employee who ditional annuity benefits. Only then tect pension assets. Whether the pro­ typically has a pattern of low contri­ may his personal and family expenses vider of pension benefits is separately butions in the early stages of his have declined enough for him to use incorporated or not, it fulfills the career. Joint Conference Report No. part of his salary to supplement his re­ functions of the church with which it 93-1280, 93d Congress, 2d session 345 tirement annuity. A minister's church

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor.

79-059 0-85-5 (Pt. 22) 28632 EXTENSIONS OF REMARKS November 20, 1981 may also recognize that he is about to annual additions to a participant's ac­ ance and subsequent legislation is in retire with a poor retirement income count occur in the year to which a no way circumvented. The term and, with help from the congregation, contribution is attributed, rather than "agency" of a church is defined in this may contribute more funds to raise his lumped in the year in which the annu­ legislation by reference to that term in annuity to an acceptable level. But be­ ity contract becomes nonforfeitable. section 414(e)(3)(B)(ii) and means an cause the 25-percent limitation of sec­ Similar treatment seems appropriate exempt organization either controlled tion 415(c)(l) is based on an extremely in the case of a section 403(b) annuity. by or associated with a church or a low salary, it frustrates any effort, by However, in the case of a section convention or association of churches. salary reduction or otherwise, to en­ 403(b) annuity, it is not clear whether Our legislation also would treat the hance the minister's retirement bene­ the same rule would apply. It would be fits meaningfully. We consider unfair unfortunate if several years of contri­ service of a minister or lay employee any rule that denies ministers and lay butions were deemed made in the year with any church or church agency of a church employees a chance to build the annuity became nonforfeitable be­ religious denomination as service with reasonable retirement benefits. cause of the likelihood the section a single employer for purposes of com­ A third problem is that the "years­ 415(c)(l) limitations would be exceed­ puting the exclusion allowance. All of-service" factor of the exclusion al­ ed. years of service of a minister or lay lowance is limited to years of service It is also unclear whether partic­ employee for a church or a church with the employee's present employer. pants in such plans would have the agency, both of which must be de­ In computing the exclusion allowance right to the elections in section scribed in section 50l

79-059 0-85-6 (Pt. 22) 28664 EXTENSIONS OF REMARKS November 20, 1981 provided by this dedicated public serv­ fense of Kathy Boudin, notorious monies freely acknowledge that they have ant. member of the Weather Underground., ignored these statutory restrictions. Mr. Jordan is required to be on call who was arrested recently in connec­ In addition to those programs expressly for 7 hours a day, 7 days a week to re­ tion with the $1.6 million Brinks rob­ authorized to fund advocacy activities, there are many others which have had that unin­ spond to emergency situations in the bery in New York. Marge Grevatt, a tended result. city. A family left homeless as a result close friend of Boudin's, stated that For example, a House Appropriations of fire, children without food, emo­ the American system had pushed Committee report found that Sam Brown's tional situations culminating in suici­ Boudin into her role of violence and ACTION had supported union organizing, dal/barricade situations, those who as­ terror. "I think it is a terrible com­ funded a training institute for community semble to petition their government; mentary on our society when someone activists to the tune of $432,235, and as­ all rely on the professionalism, com­ with her sensitivity and commitment signed volunteers to work in the 1979 Ar­ passion, and dedication of Sam becomes frustrated to the point that kansas primary election. Jordan. Indeed, I am certain that she did," said Grevatt. The Cleveland LEGAL SERVICES ADVOCACY nearly every one of my colleagues has Legal Aid Society received $1.5 million But the Legal Services Corporation constituents who have benefited from from Legal Services Corporation in is probably more extensively and exclusively the service of Mr. Jordan. I have in 1980. involved in ideologically premised advocacy mind those national occasions such as I offer for the record the first in­ than is any other agency. when we inaugurate a President, wel­ stallment of an excellent monograph In 1981, this government-created, semi-au­ come foreign dignataries, and assem­ on the Legal Services Corporation en­ tonomous entity received $321,300,000 in titled "Missionaries for Liberalism: taxpayer funding. Like other advocacy pro­ ble for a Solidarity Day; all are occa­ grams, which operate through extra-govern­ sions on which Sam Jordan insures Uncle Sam's Established Church" by mental non-profit corporations, it is charac­ the safety and well being of hundreds Michael E. Hammon: terized by an organic statute which, while of thousands of our citizens. MISSIONARIES FOR LIBERALISM: UNCLE SAM'S not saying so, has the effect of channelling Samuel H. Jordan can be looked to ESTABLISHED CHURCH funding to individuals and organizations on as one who exemplifies the best in a

, adjusted to 1969-76, times another, possibly on the job hazard". the 1970 age structure, is substantial and Moreover, smoking and occupation are con­ Mortality rate per Average percent founded variables. smoking among men comparable with that for the preceding 35 100,000 change 1969- 76 years, 1935 to 1970 <7 percent). The overall Site Sex 2 being more prevalent in 'blue-collar' work­ increase in incidence rates is even more 1969 1976 Annual 7-year ers than in professional and managerial marked than mortality rates in the past classes. Occupational causes of lung cancer, All sites ...... WM 195.0 210.2 0.9 7.8 include asbestos, radon daughters, nickel decade, involving a wide range of organs be­ WF 129.0 133.8 0.5 3.7 sides the lung
. It should be further empha­ by its denigrators. including Peto. First, the source emissions of industrial carcinogens as sized that this 50-page report was prepared calculations in the report ignore the role of causes for the excess of overall and organ­ as a government document specifically for radiation and of some ten epidemiologically specific cancers, including lung, bladder, inclusion in public hearing records, and not recognized occupational carcinogens, other colon, pancreas and breast, in residents of for submission to a scientific journal. than the six considered. Second, the risk certain highly industrialized counties. ratios considered may be artificially low as This government report has received ex­ CONCLUSIONS they were largely derived from less-than­ tensive support from various expert bodies, Cancer is a disease of multifactorial aetiol­ lifetime epidemiological studies, which may such as the Toxic Substances Strategy Com­ ogy to which occupational exposure and thus underestimate the true risk in view of mittee, whose position has been endorsed by smoking can contribute importantly, some­ the long latencies commonly involved. 17 federal agencies, and international times interactively. There have been sub­ Third, the report does not consider the groups, such as the International Labor Or­ stantial recent increases in cancer rates many statistical and methodological con­ ganization, and the US and British trades which cannot be accounted for by smoking straints common to most occupational epi­ union. The report has also received addi­ alone. Smoking is the major lifestyle factor demiological studies such as relatively small tional support in the critique of two consult­ of importance in cancer, and evidence for numbers of workers in many locations, ants to the chemical industry's American the causal role of other lifestyle factors. changes in exposure patterns over time due Industrial Health Council which concluded particularly, diet, is slender. The role of life­ to employee turnover. plant shutdown, proc­ that " ... the full range using with an economic or intellectual investment management, all of which lead to fragmen­ multiple classifications may be from 10 to 33 in this theory, by largely excluding involun­ t.ation of health and exposure records, percent or perhaps higher if we had better tary exposures to carcinogens and minimiz­ access to which is often restricted by indus­ information on some other potentially carci­ ing the role of occupational carcinogens. try. Fourth, the estimates fail to take ac­ nogenic substances ... The annual number These considerations further illustrate the count of the many chemicals recognized as of cancer deaths attributable to asbestos is primary thesis of The Politics of Cancer: carcinogenic in animals for which there are in the range from 29, 700 to 54,000, which cancer is essentially a preventable disease no exposure or epidemiological data. Thus, corresponds to a percentage range of the which requires intervention and regulation of 442 chemicals and industrial processes re­ total cancer of 7 to 14 percent • • • Any ar­ at several levels, particularly the occupa­ cently evaluated by the International gument over these numbers cannot detract tional and smoking. Failure to prevent Agency for Research on Cancer , epi­ from the fact that asbestos exposure was, as cancer reflects major political and economic demiological data are available for only 60 the authors constraints which have hitherto been large­ (14 percent>, although evidence of experi­ state, a major public health disaster • • • . ly unrecognized or discounted. mental carcinogenicity was considered to be We also believe that reduction of exposure . Fifth, the es­ to carcinogens in the course of employment occupational and environmental medicine timates exclude high risk occupations with can certainly be expected to affect major re­ and Joel B. Swartz, assistant professor of oc­ incompletely defined carcinogens, such as ductions in the frequencies of occurrence of cupational and environmental medicine, the steel, rubber and tanning industries. cancer and is one of the most promising ap­ School of Public Health, University of Illi­ Sixth, the estimates do not adequately re- plications of preventive medicine." The nois. coauthored this article.>•