DEFINITION OF HIGHLY COMPENSATED EMPLOYEE FOR PRE-ERISA RULES FOR CHURCH PLANS.

SEC. 1462. DEFINITION OF HIGHLY COMPENSATED EMPLOYEE FOR PRE-ERISA RULES FOR CHURCH PLANS. (a) In General.— Section 414(q) (defining highly compensated employee), as amended by section 1431(c)(1)(A) of this Act, is amended by adding at the end the following new paragraph: “(7) Certain employees not considered highly compensated and excluded employees under preerisa rules for church plans.— In the case of a church plan (as defined in subsection (e)), no employee shall be considered an officer, a person whose principal duties consist of supervising the work of other employees, or a highly compensated employee for any year unless such employee is a highly compensated employee under paragraph (1) for such year.”. (b) Safeharbor Authority.— The Secretary of the Treasury may design nondiscrimination and coverage safe harbors for church plans. (c) Effective Date.— The amendments made by subsection (a) shall apply to years beginning after December 31, 1996.