[S 4759] PRIVATE PENSION REFORM LEGISLATION-COMPARISON OF SENATE-PASSED AND HOUSE-PASSED VERSIONS OF H.R. 2-Continued SENATE Secretary of Labor is given authority to petition appropriate U.S. District Court for an order requiring corrective action whenever he believes an employee benefit fund is being administered in violation of this Act. (sec. 692) Civil actions for appropriate relief (legal or equitable) may also be brought by a participant or beneficiary to redress or restrain violations of fiduciary duty. (sec. 693) No provision. The Secretary of Labor may make appropriate investigations when he believes it necessary to determine whether any person has violated the provisions of this act or the Welfare and Pension Plans Disclosure Act. He may enter such places, inspect such records and accounts, and question such persons as he may deem necessary to enable him to determine the facts relative to such investigation. (The Secretary of Labor is to make arrangements with the Secretary of Treasury so as to preclude a duplication of effort with regard to investigation of violations relating to fiduciaries.) It shall be unlawful for any person to discharge, fine, suspend, expel, discipline, or discriminate against any participant or beneficiary for exercising any right under the pension plan. It shall also be unlawful to use fraud, force, intimidation, etc. for the, purpose of interfering with the exercise of any right under the plan, this act, or the Welfare and Pension Plans Disclosure Act. (sec. 699) Each plan shall provide a procedure for the fair and just review of any disputes between the administrator of the plan and any participant or beneficiary and an opportunity after such review and a decision by the administrator for the arbitration of such disputes. A participant or beneficiary may bring a civil action in lieu of submitting the dispute to arbitration under the plan. The cost of arbitration shall be paid by the plan unless the arbitrator determines that the allegations are frivolous. The Secretary of Labor shall inform participants of their rights and is authorized to furnish assistance in obtaining such rights. (sec. 691) Secretary of Labor given broad authority for studies relating to the effect of new law, the role of private pensions in meeting retirement, security needs of the Nation, alternative methods of providing additional retirement security, and the operation of private pension plans. Secretay also directed to undertake special study of the sufficiency of provisions of the new law for high mobility employees. The Secretary of Labor is directed to undertake research studies relating to pension plans, including but not limited to (1) the effects of Title I upon the provisions and costs of pension plans (2) the role of private pensions in meeting the economic security needs of the Nation, and (3) the operation of private pension plans including types and levels of benefits, degree of reciprocity or portability, and financial characteristics and practices, and methods of encouraging the growth of the private pension system. (sec. 502) No provision. [S 4760] PRIVATE PENSION REFORM LEGISLATION-COMPARISON OF SENATI PASSED AND HOUSE-PASSED VERSIONS OF HR. 2-Continued SENATE The Secretary of Treasury is directed to study the extent to which Federal and State pension plans are adequately funded, and determine whether it would be appropriate to require such plans to comply with the same minimum standards applicable to private plans. (sec. 281) A broadly-representative Advisory Council on Employee Welfare and Pension Benefit Plans consisting of 21 members appointed by the Secretary of Labor would be established, and would include 3 persons representing those receiving benefits from a private pension plan. (sec. 506) HOUSE: TITLE I The Committee on Education and Labor and the Comimttee on Ways and Means of the House of Representatives shall study retirement plans established by Federal, State, and local governments including the (1) adequacy of existing levels of participation, vesting, and financial arrangements, (2) existing fiduciary standards, (3) the unique circumstances affecting mobility of government employees and individuals employed under Federal procurement, construction, or research contracts or grants, and (4) the necessity for Federal legislation and standards with respect to such plans. (sec. 502) Advisory Council A broadly-representative Advisory Council on Employee Welfare and Pension Benefit Plans consisting of 15 members appointed by the Secretary of Labor would be established. (sec. 114) HOUSE: TITLE II Same as Title L. (sec. 1023) No provision. NOTE: Commas separate the page numbers within each Committee Report and the Congressional Actuarial factors Assumptions, 17, 37; 102, 147; 262, 328, 330 Valuation of assets, 84, 102; 262, 331 Actuarial reports, 28, 40, 45, 59; 103, 148; 262, 329, 337 Actuaries Duties, 147; 329 Enrollment, 17, 37; 103, 147; 262, 327, 337 Administrators of plans (See also: Fiduciaries; Report- Defined, 51, 54 Excluded persons, 34, 47, 70; 110, 184; 417 Advisory Council on Employee Welfare and Pension Affiliated employers (See: Controlled group of corpora- Age requirements, 19, 39; 83, 98, 99, 125; 250, 252, 255, Air pilots, 284 Amortization, 21, 39; 84, 101, 136, 138, 141; 259, 311, Annual reports (See: Reporting requirements) Contract treated as trust, 396 Individual retirement plans, 88, 107, 211; 267, 369 Appeals, declaratory judgment procedure, 88, 103, 113, Assets Allocation, termination of plan, 14, 22, 30, 40, 46, Valuation, 16; 84, 102, 145, 146; 262, 330 Audit fee tax, 113, 188, 189 Audits, 16, 37, 46, 56; 330, 334, 337 Back-loading, 256, 296, 299 Benefits (See also: Limitations on contributions and Accrual, 83, 99, 129; 255, 295 Back-loading, 256, 296, 299 Cash-out, 294 Claim procedures, 34, 47, 53, 55, 71; 196; 419 Early retirement, 16; 271, 354 Integration with social security, 205; 264, 304, 405; Joint and survivor annuities, 35, 47; 225; 240, 263, Merger of plans, 264, 303, 358 Payment, starting dates, 255, 305 Repayment, refund claims, limitation period, 165 303 Retroactive reduction, 314 Bonding, 64 Bonds, valuation, 262, 332 Breaks in service, 21, 39; 251, 280, 301; 411 Cafeteria plans, 379 Church plans Defined, 327 Exclusion, 18, 28, 53; 252, 282, 307, 326, 327; 410, Inclusion election, 160; 252, 282, 307, 327; 414 Civil, actions and liabilities, 2, 14, 15, 33, 35, 37, 46, 47, Claim procedures, benefits, 34, 47, 53, 55, 71; 196; 419 Class year plans, 128; 300 Collectively bargained plans, 22, 41; 83, 84, 100, 104, Combined plans, 242, 271, 357; 418 Commonly controlled unincorporated businesses, 285 Contribution limitations (See: Limitations on contribu- Contributions, timing, 142, 206; 319, 353 Controlled group of corporations, 122; 285, 324, 334, 336 Cost of living adjustments, 202; 272, 354, 356; 417 Criminal Liability, 2, 14, 36, 48, 62, 65, 71; 110, 184; 419 Custodial accounts, 207; 395 Limitations on contributions and benefits-Continued Existing plans, 360 Overall, 272, 353, 360; 417, 418 Records not available, 359 Section 403(b) annuities, 270 $10,000 benefit exception, 271, 355; 417 Lump-sum distributions Aggregation, six-year lookback rule, 221; 387 Cash-out, 294 Computation, 222 Effective date, 225; 273, 393 Fifteen-year averaging, 218, 220; 418 Minimum distribution allowance, 89, 113, 218, 221; 383, 387; 418 Self-employed persons, 206; 242, 272, 381 Treatment, general, 89, 113, 218, 220; 242, 272, 382; 418 Merger of plans, 264, 303, 358 Money purchase plans Accrued benefits, 130; 295 Funding, 103, 136, 146; 311, 323, 325 Insurance exclusion, 160 Limitations on contributions, 204 Multiemployer plans Alternative funding, 141; 311, 318; 419 Amendments, 313, 333 Amortization, 85, 104; 311, 318; 412 Defined, 281 Funding requirements, general, 41; 145; 240, 258, 310, 324 Participation requirements, 98; 250, 279 Reporting requirements, 128; 265, 301, 394 Variances Funding, 2, 22, 41; 85, 104, 141; 240, 261, 318; 412, 419, Vesting, 2, 22, 39, 40; 240, 258, 301; 419 Vesting requirements, general, 21; 127; 240, 293; 410 Mutual funds, 216; 397 Negotiated plans, union and Government, 401 Net operating loss, 216 Nonresident aliens, 38, 53; 122; 284 Normal retirement age, 16; 130; 252, 255, 296 Officers of Labor and Treasury, conflict of interest, 72 Participants' rights, interference, 2, 14, 35, 48; 419 Participation Age, 19, 39; 83, 98; 250, 252, 279, 281; 410 Participation-Continued Breaks in service, 251, 280; 411 Collectively bargained plans, 83, 121; 252, 284, 286 Minimum standards, 19, 39; 83, 98, 119; 239, 250, Multiemployer plans, 98; 250, 279 Pilots, 284 Nonresident aliens, 38, 53; 122; 284 Seasonal employees, 123, 127; 251, 280, 286, 203; 410 Service requirements, 19, 39; 83, 98, 119; 239, 250, 279; 410 Past service liabilities, 9, 21, 39; 84, 101, 104, 136, 138, 141; 240, 259, 261, 311; 412 Penalties Failure to file Actuarial reports, 330 Annual registration statement, 395 Individual retirement plan reports, 369 Notification of change in status, 395 Failure to furnish, information to participant, 62; Failure to maintain and furnish records, 128; 301 Premature distributions, 213; 242, 268, 269, 352 Prohibited transactions, 182 Pension Benefit Guaranty Corporation (See: Plan termination insurance) Period of limitation (See: Limitation period) Plan amendments Funding standards, 40, 41; 84, 101, 139, 150; 240, 259, 313, 333; 412 Retroactive remedial, 226; 400 Plan termination insurance Allocation of assets, 22, 40; 163 Benefits guaranteed, 2, 24, 43; 86, 105, 159, 160; 413 Effective date, 36, 48; 86, 105, 162, 168, 172 Establishment of Insurance funds, 44; 87, 106, 159, 165; 412 Pension Benefit Guaranty Corporation, 2, 42: 86, 105, 159; 241, 265; 412 Investigation, cooperation, civil actions, 159, 170 Portability assistance, 85, 109, 152, 157; 414 Premiums; rates, payment, and penalties, 14, 22. 25, 41, 43; 86, 105, 159, 165, 169; 414 Recapture of benefit payments, 164 424 Plan termination insurance-Continued Reporting requirements, 14, 25, 44, 45; 170 Plan written instrument, 30, 46, 67 Portability Assistance, 2, 23, 36, 42; 85, 109, 150; 414 Tax-free rollovers, 86, 109, 150, 155, 214; 265, 362, 374; 414 Practice before the Service (See: Actuaries) Premature distributions, 212, 213; 242, 268, 269, 352, 362, 371 Profit-sharing plans Accrued benefits, 130; 295 Benefit and contribution limits, 242, 270, 353 Insurance exclusion, 105 Proposed regulations postponed, 209; 242, 273, 378; 418 Puerto Rican pension plans, 398 Prohibited transactions Civil penalty, 182 Effective date, 175, 181; 417 Excise tax, 87, 111, 174, 215; 416 Exemption or variances, 31, 32, 46, 68; 416 Fiduciaries, 14, 31, 46, 68; 87, 111, 174, 175, 182; Parties-in-interest, 32; 87, 111, 174, 175, 182; 416 Proprietary employee plans (See: Self-employed plans) Prudent man rule, 27, 29, 30, 31, 33, 46, 67; 416 Puerto Rican pension plans, 398 Railroad Retirement Act plans (See: Government plans) Railway Labor Act, pilots, 284 Recordkeeping requirements, 64; 128; 301 Registration of plans, 152, 156; 394 Regulations Issuance, 54, 55, 62, 65, 68, 71; 265; 410, 411, 418 Postponement, 209; 242, 273, 378; 418 Reporting requirements Actuarial, 28, 40, 45, 59; 103, 148; 262, 329, 337 Registration statement, 156; 394, 397 Report, 28, 38, 44, 45, 54, 55, 61; 414, 415 Financial statements, 414, 415 Individual retirement plans, 214, 215, 227; 369, 374, 397 Multiemployer plans, 128, 169; 265, 301, 394 Reporting requirements-Continued Notification of change, 38, 45; 394 Voluntary reports, prior law vested interests, 395 Retirement bonds, 88, 107, 214; 361, 375 Retirement income credit, distributions, individual plans, 216 Salary reduction plans, 208, 215; 242, 273, 378; 418 Seasonal employees, year of service, 123, 127; 251, 280, 286, 293; 41 0 Secretary of Labor (See: Labor Department) Section 403(b) plans, 216; 270, 397 Self-employed plans Contributions, limitations on deductions, 88, 107, 200; 241, 268, 348; 417 Custodial accounts, 207; 395 Defined benefit plan limitations, 200, 202; 348; 417 Excess contributions, 206; 269, 351 Lump-sum distributions, 206; 242, 272, 381 Timing of contributions, 206; 319, 353 Voluntary contributions, 352 Voluntary contributions, withdrawal, 207; 353 Small business corporations (See: Self-employed plans) Social Security Administration Information storage, 86, 110, 117, 156; 265, 393; 418 Notification of employee's vested interest, 86, 110, 117, 156; 241, 265, 301, 393; 418 State law, preemption, 35, 47, 72; 418 Statute of limitations (See: Limitation period) Congressional, 420 Labor Department, 241, 257, 307; 419 Subpoenas, 37, 63; 197 Suits, 15, 35, 37, 47, 62; 87, 111, 170, 174, 182, 196; 416, 418, 419 Suspension of benefits, 294 Target benefit plans, 311, 323 Tax-audit fee, 113, 188, 189 Tax Court, declaratory judgments, 88, 103, 113, 193; 241, 263, 266, 341, 345 |