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Texas Vernon's Texas Civil Statutes - Article 1407a. Church Benefit Plans And Church Benefits Boards

Legal Research Home > Texas Laws > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 1407a. Church Benefit Plans And Church Benefits Boards

Art. 1407a. CHURCH BENEFIT PLANS AND CHURCH BENEFITS 
BOARDS.                 

Definition
	Sec. 1. In this Act "church benefits board" means an 
organization as described in Section 414(e)(3)(A) of the Internal 
Revenue Code of 1986 (26 U.S.C. Section 414(e) ) that:
	(1)  has the principal purpose or function of administering 
or funding a plan or program for providing retirement benefits, 
welfare benefits, or both for the ministers or employees of a church 
or a conference, convention, or association of churches;  and
	(2)  is controlled by or affiliated with a church or a 
conference, convention, or association of churches.

Pensions and Benefits
	Sec. 2. If duly authorized by its members or as otherwise 
provided by law, a domestic or foreign nonprofit corporation formed 
for a religious purpose may provide, directly or through a separate 
church benefits board, for the support and payment of pensions and 
benefits to its ministers, teachers, employees, trustees, 
directors, or other functionaries and to the ministers, teachers, 
employees, trustees, directors, or functionaries of organizations 
controlled by or affiliated with a church or a conference, 
convention, or association of churches under its jurisdiction and 
control and may provide for the payment of pensions and benefits to 
the spouse, children, dependents, or other beneficiaries of those 
persons.

Contributions
	Sec. 3. A church benefits board may provide for the 
collection of contributions and other payments to aid in providing 
pensions and benefits under this Act and for the creation, 
maintenance, investment, management, and disbursement of necessary 
annuities, endowments, reserves, and other funds for those 
purposes.  Payments may be received from a trust fund or corporation 
that funds a "church plan" as defined by Section 414(e), Internal 
Revenue Code of 1986 (26 U.S.C. Section 414(e) ).

Documents and Agreements
	Sec. 4. A church benefits board may provide certificates or 
agreements of participation and debentures and indemnification 
agreements to its program participants as appropriate to accomplish 
its purposes, may act as trustee under a lawful trust committed to 
it by contract, will, or otherwise, and may act as agent for the 
performance of a lawful act relating to the purposes of the trust.

Indemnification
	Sec. 5. A church benefits board, directly or through an 
affiliate wholly owned by the board, may agree to indemnify against 
damage or risk of loss:
	(1)  its affiliated ministers, teachers, employees, 
trustees, functionaries, directors, and their families, 
dependents, and beneficiaries;  and
	(2)  a church, a convention, conference, or association of 
churches, or an organization that is controlled by or affiliated 
with it or with a church or a convention, conference, or association 
of churches.

Protection of Benefits
	Sec. 6. Money or other benefits that have been or will be 
provided to a participant or a beneficiary under a plan or program 
of retirement income, relief, welfare, or employee benefit provided 
by or through a church benefits board is not subject to execution, 
attachment, garnishment, or other process and may not be seized, 
taken, appropriated, or applied as part of a judicial, legal, or 
equitable process or operation of a law other than a constitution to 
pay a debt or liability of the participant or beneficiary.  This 
section does not apply to a qualified domestic relations order or an 
amount required by the church benefits board to recover costs or 
expenses it incurred in the plan or program.

Assignment
	Sec. 7. If a plan or program under this Act contains a 
provision prohibiting assignment or other transfer by a beneficiary 
of money or benefits to be paid or rendered or of other rights under 
the plan or program without the written consent of the church 
benefits board, a prohibited assignment or transfer or an attempt 
to make a prohibited assignment or transfer is void if made without 
that consent.

Insurance Code Not Applicable
	Sec. 8. The Insurance Code does not apply to a church benefits 
board or its programs, plans, benefits, activities, or affiliates.

Applicability
	Sec. 9. Except as provided by Title 8, Business Organizations 
Code, this Act does not apply to a church benefits board to which 
the Business Organizations Code applies.

Acts 1987, 70th Leg., ch. 963, eff. June 19, 1987.                            

Sec. 9 added by Acts 2003, 78th Leg., ch. 182, Sec. 14, eff. Jan. 1, 
2006.  

Last modified: August 11, 2007