Legislative history of the Employee retirement income security act of 1974

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Title:
Legislative history of the Employee retirement income security act of 1974 Public law 93-406
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English
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United States
United States -- Congress. -- Senate. -- Committee on Labor and Public Welfare. -- Subcommittee on Labor
United States
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Subjects / Keywords:
Pension trusts -- Law and legislation -- United States   ( lcsh )
Retirement income -- United States   ( lcsh )
Pensions -- United States   ( lcsh )
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federal government publication   ( marcgt )
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Notes

General Note:
At head of title: 94th Congress, 2d session. Committee print.
General Note:
Includes indexes.
General Note:
Includes index.
Statement of Responsibility:
prepared by the Subcommittee on Labor of the Committee on Labor and Public Welfare, United States Senate, April 1976.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 025828421
oclc - 02349652
lccn - 77600583 //r863
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lcc - KF3512.A315 A15 1976
System ID:
AA00024841:00001

Full Text










94th Congress COMMITTEE PRINT
2d Session J




LEGISLATIVE HISTORY
OF THE

EMPLOYEE RETIREMENT INCOME

SECURITY ACT OF 1974


Public Law 93-406




PREPARED BY THE

SUBCOMMITTEE ON LABOR

OF THE

COMMITTEE ON LABOR AND
PUBLIC WELFARE
UNITED STATES SENATE







APRIL 1976


Volume I


Printed for the use of the Committee on Labor and
Public Welfare

U.S. GOVERNMENT PRINTING OFFICE
25-028 O WASHINGTON : 1976




**s "ss "'I,























COMMITTEE ON LABOR AND PUBLIC WELFARE

HARRISON A. WILLIAMS, JR., New Jersey, Chairman
JENNINGS RANDOLPH, West Virginia JACOB K. JAVITS, New York
CLAIBORNE PELL, Rhode Island RICHARD S. SCHWEIKER, Pennsylvania
EDWARD M. KENNEDY, Massachusetts ROBERT TAFT, JB, Ohio
GAYLORD NELSON, Wisconsin J. GLENN BEALL, JR., Maryland
WALTER F. MONDALE, Minnesota ROBERT T. STAFFORD, Vermont
THOMAS F. EAGLETON, Missouri PAUL LAXALT, Nevada
ALAN CRANSTON, California
WILLIAM D. HATHAWAY, Maine
JOHN A. DURKIN, New Hampshire
DONALD ELISBURG, General Counsel
MARJORIE M. WHITTAKER, Chief Clerk
JAY B. CUTLER, Minority Counsel



SUBCOMMITTEE ON LABOR

HARRISON A. WILLIAMS, JR., New Jersey, Chairman
JENNINGS RANDOLPH, West Virginia JACOB K. JAVITS, New York
CLAIBORNE PELL, Rhode Island RICHARD S. SCHWEIKER, Pennsylvania
GAYLORD NELSON, Wisconsin ROBERT TAFT, JR., Ohio
WALTER MONDALE, Minnesota ROBERT T. STAFFORD, Vermont
WILLIAM D. HATHAWAY, Maine
JOHN A. DURKIN, New Hampshire

DONALD ELISBUsR, Counsel
MICHAEL SCHOENENBERGER, Associate Counsel
DON ZIMMERMAN, Minority Counsel
(II)













FOREWORD


Industrial pensions began in America more than 100 years ago and
in the last 25 years, they have enjoyed enormous growth. Today, more
than 30 million American workers are relying on private pension
and welfare plans as a major source of economic security in old age.
The assets of private pension arrangements increased from $2.4 bil-
lion in 1940 to more than $150 billion in 1975 making these funds one
of the largest sources of private capital in the economy. These changes
have radically altered the retirement security expectations of the
American people.
But for the most part, this phenomenal growth was largely unregu-
lated. While the absence of substantive requirements helped promote
growth of the private system, the resulting plans set up difficult and
sometimes insurmountable obstacles to plan participants.
Passage of this legislation is the end product of years of study and
development by the Committee on Labor and Public Welfare. For
their work in this effort, I wish to extend a special thanks to all of my
colleagues on the Committee whose contributions and support made
this landmark reform possible. A particular tribute must be reserved
for the distinguished ranking minority member of the Committee
(Mr. Javits) whose efforts dating back to 1967 awakened Congress to
the need for comprehensive reform.
The Employee Retirement Income Security Act responded to the
recommendations of the Senate study and to the objectives of a broad
consensus for comprehensive reform. The new rules reflect a careful
balance of incentives and controls designed by Congress to improve
the equitable character of private plans while encouraging their fu-
ture growth and development.
Implementation of the ERISA standards will demand an effective
administration with a unique understanding of the impact of its re-
quirements. To aid those responsible for its administration, I have
asked the committee staff to compile this legislative history with the
assistance of the Department of Labor under whose direction the in-
dexes were prepared.
HARRISON A. WILLIAMS, Jr.,
Chairman.
(III)













































































k
















ACKNOWLEDGMENT


The indexes for this legislative history of the Employee Retire-
ment Income Security Act of 1974 and the Explanatory Notes for
Using the Indexes were prepared by staff of the U.S. Department of
Labor at the direction of Paul J. Fasser, Jr., Assistant Secretary of
Labor for Labor-Management Relations. For the dedication of that
staff to the project, and for the help of other employees who contrib-
uted significantly to the effort, I wish to express my appreciation, and
my particular thanks to the following: Paul R. Antsen, Richard D.
Ferrone (of the Office of the Solicitor), Neilda C. Lee, Edwin A.
Silver, and Ellan H. Spring, who structured and compiled the in-
dexes; Bruce M. Leet, who helped to plan and start the project; Rich-
ard T. Wood, who kept a chronicle of pension reform legislation;
and John S. Hunter, who guided the project.

HARRISON A. WILLIAMS, Jr., Chairman.
(V)





















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in 2013














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CONTENTS


Page
Foreword -------------------------------------------------- III
Acknowledgment ----------------------------------------------- V
Index -------------- -------- ----------------------- XI

VOLUME I
January 3, 1973-House:
Safeguarding Private Pension Plans, introductory remarks of Mr. Dent
on H.R. 2 and H.R. 462-------------------------------- 1
H.R. 2, text of, as introduced ----------------------- 3
H.R. 462, text of, as introduced--------------------------- 67
January 4, 1973-Senate:
Introductory remarks of Mr. Williams on S. 4-------------------- 90-92
S. 4, text of, as introduced----------------- 93
Outline of major provisions of S. 4-Williams-Javits Pension Reform
bill--------------------------- 190
Summary of major provisions of S. 4--Williams-Javits Pension Reform
bill ---------- ------------------- 190-202
Introductory remarks of Mr. Javits --------------------203-206
Introductory remarks of Mr. Ribicoff ----- ------------- 207
March 13, 1973-Senate:
Introductory remarks of Mr. Bentsen on S. 1179 ----------- 210
S. 1179, text of, as introduced-- -- -----------230
April 12, 1973-Senate:
Introductory remarks of Mr. Javits on S. 1557 ---------------- 273
Explanatory statement of amendments to the Welfare and Pension
Plans Disclosure Act made by the Employee Benefits Protection
Act ---- -------------------------------- 274-279
S. 1557, text of, as introduced------------ ------------ 280
April 18, 1973---Senate:
Introductory statement of Mr. Hansen on S. 1631------ ------- 324
S. 1631, text of, as introduced-------------------------- 325
S. 4, text of, as reported------------------------------- 389
Senate Report 93-127 ---- ------------------------ 587
June 28, 1973-House:
Tax Treatment of Survivor Benefit Plans of Uniform Services, unani-
mous consent consideration of H.R. 4200 -------- ---------- 666
June 28, 1973-Senate:
Referral of H.R. 4200 to Committee on Finance -------------- 672
July 18, 1973-Senate:
Submission of amendments to S. 4, Pension Reform------------ ---- 673
Amendments to S. 4:
No. 378 (by Mr. Mondale) ---------------------------- 675
No. 379 (by Mr. Mondale)--- ---------------------- 677
Amendments to H.R. 4200:
No. 380 (by Mr. Mondale) -------------------------- 678
No. 381 (by Mr. Mondale) ----------------------------------- 680
July 20, 1973-Senate:
Amendment No. 401 to S. 4 (by Mr. Stevenson) --------- -----682
August 1, 1973-Senate:
Unanimous consent authority for Committees to file reports -------- 683
August 2, 1973-House:
H.R. 9824, text of, as introduced_ _--- -----------------686
(VHI)







VIII

August 3, 1973-Senate: Page
Order for consideration of S. 4 on September 11, 1973 ------------- 778
Bill reported during August Recess:
S. 1179, text of, as reported August 21, 1973 -------------- 780
Senate Report 93-383 ------------------------ ----- 1063
September 10, 1973-Senate:
Vitiation of order previously entered on S. 4, the Pension and Welfare
Benefits bill--------------------- --------------------- -- 1225
Order for limitation of debate on S. 4------------------------- 1225
Order to consider S. 4 on Tuesday, September 18, 1973--------- 1226
September 13, 1973-Senate:
Amendments to S. 4:
No. 478 (by Mr. Taft)---------------------------------- 1228
No. 4i9 (by Mr. Taft)-__-- ------------------------- 1229
No. 481 (by Mr. Hartke)----- --------------------- 1236
Introductory remarks by Mr. Hartke-- ------------- 1234
No. 482 (by Mr. Hartke) -- ----------- 1245
Introductory remarks by Mr. Hartke ---------------1244
No. 483 (by Mr. Hartke) --------------------------1249
Introductory remarks by Mr. Hartke ---------------- 1248
No. 485 (by Mr. Hartke) ------------------------- 1254
Introductory remarks by Mr. Hartke ---- ----------- 1252
Amendments to S. 1179:
No. 480 (by Mr. Taft)---- ------------------------- 1232
No. 484 (by Mr. Hartke) ----- --------------------_ 1251
Introductory remarks by Mr. Hartke-- ---------- --1250
September 17, 1973-Senate:
Amendments to S. 4:
No. 488 (by Mr. Jackson) ----------------------------1260
No. 489 (by Mr. Jackson) --------------------------1262
No. 496 by Mr. Nelson (for himself, Messrs. Long, Bentsen, and
Bennett) ------------------------------- 1271-1497
No. 497 by Mr. Nelson (for himself, Messrs. Long, Bentsen, and
Bennett) ---------------------1498-1568
Amendment No. 495 to S. 1179 (by Mr. Tunney)---- ----------- 1264
Unanimous consent for consideration of Calendar No. 119, S. 4--- 1266-1270
H.R. 4200, Text of, as reported ------ ------------------1570
Senate Report 93-394------------------------------- 1572

VOLUME II
September 18, 1973-Senate:
Floor debate on S. 4 ---- ------------------- 1579-1670
Amendments to S. 4:
No. 503 (by Mr. Curtis) --------------------------- 1671
No. 504 (by Mr. Buckley to numbered Amendment No. 497 pro-
posed by Mr. Nelson-_-------------------- 1674
No. 505 (by Mr. Nelson) ------------------------ 1675
No. 506 (by Mr. Nelson) --------------------1676
No. 507 (by Mr. Tunney)--------------- --------1678
No. 508 (by Mr. Hartke to numbered Amendment No. 496 proposed
by Mr. Nelson-------------------- 1680
Analysis of Amendment No. 496 to S. 4----------------- 1718-1729
September 19, 1973-Senate:
Floor debate on S. 4 ----------------------------1732-1882
II.R. 4200, text of, as passed by Senate ----- -------------- 1883
October 2, 1973-House:
11.1R. 2, text of, as reported with amendments ---- ------ 2181
HIouse Report 93-533 --- ------------------------2348
February 4, 1974-House":
II.R. 12481 as submitted and as reported February 5, 1974---------- 2393
House Report 93-77 ------- ------------------------2584
February 20, 1974--louse:
H.R. 12906, text of, as introduced- ----------------------- 2761
February 21, 1974-House:
H.R. 12855, text of, as reported ---- ------------------- 2924
House Report 93-807---................... ---..--.. --------. 3115











February 25, 1974-House: Page
Employee Benefit Security Act of 1974: Material explaining H.R.
12906 together with supplemental views (to accompany H.R. 2) 3293-3350
February 26, 1974--House:
Consideration of House Resolution 896---------------- -- 3351
Floor debate on H. Res. 896-------- ------ -------- 3351
Floor debate on H.R. 2------------------------ 3375-3481
February 27, 1974-House:
Floor debate on H.R. 2-------------------------------- 3482-3504

VOLUME III
February 28, 1974-House:
Floor debate on H.R. 2--------------- --------- 3505-3519
Canceled companies with pension agreements, 1973 (prepared by In-
surance, Pension and Unemployment Benefits Department, United
Steelworkers of America) --------------- ------- 3520-3521
Floor debate on H.R. 2 continued---------------------- 3522-3596
March 4, 1974-Senate:
Consideration of H.R. 2- --- -- ------ --- ------- 3597
H.R. 2, text of, with amendments as passed by Senate ----- 3599-3895
March 6, 1974-Senate:
Printing of additional copies of H.R. 2--- ---------- 3897
H.R. 2, text of, as passed by House and printed --- --------3898-4250
March 29, 1974-Senate:
Analysis of private pension reform legislation, 93d Congress, March
1974-Comparison of Senate-Passed and House-Passed versions of
H.R. 2 ------- -- -------------------- 4251
Private Pension Reform Legislation-Comparison of Senate-Passed
and House-Passed versions of H.R. 2---------- ----- 4252-4275
April 2, 1974-House:
Appointment of conferees on H.R. 2------------------- 4276
August 12, 1974--House:
House Report 93-1280 to H.R. 2, conference report -- ------4277-4654
August 13, 1974-Senate:
Submission of conference report on the Employee Retirement and
Income Security Act of 1974 (Report 93-1090) ----------- 4655
August 20, 1974-House:
Floor debate on conference report on H.R. 2-_--------- 4656-4721
H. Con. Res. 609, text of, as ordered to be printed and passed -- 4722-4730
August 22, 1974--Senate:
Authorization for Clerk of the House of Representatives to make cor-
rections in the enrollment of H.R. 2--------------------- 4731
Floor debate on conference report on H.R. 2 ---- ----------4733-4835
Public Law 93-406, text of, September 2, 1974---------- 4836-5043

APPENDIX
Administration Recommendations to the House and Senate Conferees on
H.R. 2-To Provide for Pension Reform, April 1974---------------- 5047
Summary of Differences Between the Senate Version and the House Ver-
sion of H.R. 2-To Provide for Pension Reform, committee prints pre-
pared for the use of the House and Senate conferees on H.R. 2:
Part One-Participation, Vesting, Funding, Actuaries, Jurisdiction,
and Portability, May 15, 1974 ---_ -------------- ---- 5151
Part Two-Termination Insurance; Reporting and Disclosure, June 5,
1974 ------------------------------ 5205
Part Three-Fiduciary and Enforcement, June 12, 1974------- -- 5249
Part Four-Limitations on Contributions and Benefits, Employee Sav-
ings for Retirement, Lump-Sum Distributions, Administration and
Enforcement, and Miscellaneous, June 19, 1974 ----------- 5289
Statement by the President and remarks at the bill signing ceremony at
the White House, September 2, 1974, from Presidential Documents:
Gerald R. Ford, 1974, volume 10, No. 36 ------ --------------- 5321
































































































Nr













INDEX


EXPLANATORY NOTES FOR USING THE INDEXES
Because indexing techniques vary according to such factors as the
purpose to be served, the nature of the subject matter indexed, and
the conceptions of persons who do the indexing, the following ex-
planatory notes on the indexes published herein should be helpful to
their users.
The indexes were developed to facilitate use of the basic legislative
documents in assisting to determine the Congressional intent under-
lying various provisions of the Employee Retirement Income Security
Act of 1974 (ERISA). This orientation and the complex nature of
the legislation resulted in two basic design features. First, the index
headings are fashioned primarily to describe subjects or concepts
rather than specific legislative provisions or key words. This was nec-
essary to encompass the wide range of proposals, discussions, and mod-
ifications leading to the provisions enacted in ERISA. Thus, it may be
necessary on occasion for the index user to relate a provision of
ERISA or of a forerunner bill having a certain heading to an index
heading stated a different way.
The second basic design feature is that subjects or concepts generally
are referenced to single index headings. In other words, where multiple
index headings for a particular subject could be used, only one heading
is used for giving page references. Thus, once the user determines
that he has found a heading covering his subject, he need not be
concerned that some other heading might also cover the subject with
possibly a difference in the page references. The "see" cross references
are used to help in finding the correct heading. The "see also" cross
references are used to indicate that there is a closely related heading.
Other points on the approach and techniques used in the indexes
follow.
1. There are nine basic indexes covering broad subject areas, as
follow:
Definitions
Reporting and Disclosure
Participation and Vesting
Funding
Fiduciary Responsibility
Termination Insurance
Enforcement
Internal Revenue Code
Miscellaneous
(xI)



A:I






XII

2. The documents indexed are limited to bills, reports, the "bill" print
of broad amendments such as those in the nature of a substitute, and
floor debates. At the end of these explanatory notes is a list of such
documents printed in this legislative history. The list is annotated as
to several documents which, in whole or in part, are not indexed for
the purpose of avoiding duplication. For example, H.R. 4200 as passed
by the Senate is not indexed because the same legislation became the
Senate amendment to H.R. 2. Also, for example, the substitute bill
printed in the Conference Report is not indexed because of its close
similarity to the final law. In addition, prints in committee reports of
the Welfare and Pension Plans Disclosure Act as it would be changed
are not indexed.
While certain substantive amendments are not indexed as to the
"bill" print, they are indexed as to the floor consideration on them.
Technical, clerical, and conforming changes generally are not indexed
where they are not described in the documents as to their subject
matter.
3. The index titled Internal Revenue Code covers only matters re-
lated to the Internal Revenue Code of 1954, as amended, which do not
fall within one of the other indexes.
4. The index titled Definitions covers definitions regardless of the
subject area to which they pertain. As a rule, there are no cross refer-
ences from the other indexes to the Definitions index. Also, definitions
which seemed to have been used solely for convenience in drafting
are omitted. An example would be where "Secretary" is defined to
mean "Secretary of Labor." Another example would be where a term
is defined solely for purposes of the provision immediately preceding
the definition.
5. Certain index headings include page references only where there
is broad treatment or application of the matter in the documents.
These headings are:
Effective dates;
Need for . .
Plans covered;
Previous law;
Regulations/rules, general authority.
Instances of narrow treatment or application, to the extent they
occur in the documents, generally are not indexed separately, but may
be found within the page references given under the index heading
covering the particular subject to which they pertain. For example,
a page reference to ERISA section 505, regarding authority to issue
regulations under Title I, is included under the "regulations" main
heading in the Reporting and Disclosure index, Participation and
Vesting index, etc.; specific authority to issue regulations regarding
the filing of annual reports may be found within the page references
given under "Annual report or return-filing requirements" in the
Renorting and Disclosure index.
6. The index heading "Previous law" refers to discussions or state-
ments about the status of law before ERISA. Therefore, the refer-







XIII

ences include discussions addressed in terms of current law, since the
discussions took place before enactment of ERISA.
7. The word "participants" in the indexes usually means "partici-
pants and beneficiaries."
Finally, it should be noted that any interpretation of legislative
documents which is inherent or implied in the indexes or these ex-
planatory notes is not to be considered as the official view of the U.S.
Department of Labor.















LIST OF DOCUMENTS
Pages in
Legislative History
(1) H.R. 2 as Introduced-------------------------- -65
(2) H.R. 462 as Introduced------------------------------------ 67-87
(3) S. 4 as Introduced-_-------------------------- 93-189
(4) S. 1179 as Introduced --- ----------------- --230-72
(5) S. 1557 as Introduced----- -------------- 280-323
(6) S. 1631 as Introduced ----------------------------- ---- 325-87
(7) S. 4 as Reported------------------------ 389-586
(8) Senate Report on S. 4---------- -- -------------- 587-665
(9) H.R. 9824 as Introduced ----- ------------------ 686-777
(10) S. 1179 as Reported --------- ------ -------- 780-1062
(11) Senate Report on S. 1179-------------- ---------1063-1224
(12) S. 4 Amendment No. 496 -------------------------1271-1497
(13) S. 4 Amendment No. 497 ------------------1498-1568
(14) Senate Report on H.R. 4200 ----------------------- 1570-78
(15) Senate Consideration of S. 4------------------------------- 1579-1882
(16) H.R. 4200 as Passed by the Senate 1--------------- 1883-2178
(17) H.R. 2 as Reported-- ----------------------2181-2347
(18) House Report on H.R. 2 --------------------------- 2348-92
(19) H.R. 12481 as Introduced ----------------------- 2394-2583
(20) House Report on H.R. 12481 ---- ------------------ 2584-2759
(21) H.R. 12906 as Introduced ----------------------- 2761-2922
(22) H.R. 12855 as Introduced ------------------------2924-3114
(23) House Report on H.R. 12855 ------------------ ---- 3115-3292
(24) House Report explaining H.R. 12906 [printed in Congressional
Record] ----- ---------------------3293-3350
(25) House of Representatives Consideration of H.R. 2 --------- 3351-3596
(26) Senate Consideration of H.R. 2 ---------------------- 3597-98
(27) H.R. 2 as Passed by the Senate --------------------3599-3895
(28) H.R. 2 as Passed by the House of Representatives -- ------3898-4250
(29) Conference Report on H.R. 2 ----- ---------------- 4277-4654
(30) House of Representatives Consideration of Conference Report to
accompany H.R. 2 ------------ 4656-4730
(31) Senate Consideration of Conference Report to accompany H.R. 2- 4733-4835
(32) Public Law 93-406, approved by the President on September 2,
1974 ----- ------------------------------4836-5043

1 Not indexed to avoid duplication with item (27).
2 Not indexed to avoid duplication with Title I in item (28).
3 The substitute bill is not indexed to avoid duplication with item (32).
(XIV)












DEFINITIONS
Pages in
Legislative History
Accrued benefit ---------------------------------------------------- 2,
285, 1119, 2408-09, 2648-49, 2939-40, 3180-81, 3327-29, 3911, 4072-
73,4540,4843-44,4912
Accrued liability ----------------------------------- 2257-58, 3912-13, 4844
Accrued portion of normal retirement benefit------------------- 14,
59, 76,495-96, 544,1315-16, 3745-46
Accrued portion of the regular retirement benefit---------------------- 12-13,
695-98, 2252-55
Accumulated contributions ----------------------------------- 332-33,
843, 2416, 2852-53, 2946-47, 3626, 3989-90, 4080-81, 4868, 4917-18
Accumulated funding deficiency ---------------------------853,
1152, 1308, 2424, 2440, 2664, 2955, 2970, 3196-97, 3335, 3638, 3998,
4089, 4104,4551, 4876,4921
Accumulated vesting deficiency----- --------------- 1323, 3653
Adequate consideration ---------------------------------------- 11-12,
148, 284-85, 543, 694, 971, 1414, 2251, 2357, 3306, 3744-45, 3908-09,
4842-43
Administrator ------------------------------ ---- 11-12,
72-73, 100-01, 146-47, 283-84, 492-93, 541-42, 693-94, 877, 961-62,
1412-13, 2250-51, 2452-53, 2982-83, 3331, 3743, 3907-08, 4116-17,
4842, 4934-35
Advance funding actuarial cost method----------- --- 2258,3913,4844
Amount involved ------------ ---------- 371,977-78,1471,3798,4984
Ancillary benefits ----------------------1373,3702
Annuity starting date------------------- 3000, 3983, 4134, 4870, 4943
Any other participant-----------------2293
Appropriate conversion factor------------------------- 332,
843, 2415, 2852, 2946, 3625, 3989, 4080,4868
Average taxable wages --- ------------------ ----- 3348
Basic benefit ----------- 1023-24, 1526, 2517-18, 3048, 3852, 4182, 4961, 5010
Beneficiary -------------------- 8, 70-71, 98,490, 691, 960,2248, 3905,4841
Benefit plan services ------------------------------------1171
Break in service ------------------------4864,4911-12
Church plan --- ----------------------------2449-51,
2635, 2680, 2979-81, 31G7, 3212, 3321-22, 3344-45, 3914-15, 4113-15,
4845, 4933-34
Class year plan----- ------------------------- 119,
238, 511, 846, 1117, 2420, 2653, 2950-51, 3185-86, 3628, 4085, 4545,
4865
Commerce ------------- 9, 69-70, 97,489, 692,960,1338,2249,3906,4841
Compensation -------------------- 2518,3049,4183,4961,4966
Consultant ---------- ---------------------- -- 48,
180,318, 575-76, 740,949,1453,2299, 3784,3966,4894
Controlled group of corporations ----- ------------- 2638,3170,4933
Convicted or disability of conviction ------ ------------ -------48,
179-80,317, 575, 740, 948,1453,2299, 3782, 3965-66, 4894
Correct ----------------------------------- 1319,1323,1471-72,2440,2970,4104
Correction ------------------ 371, 864,978,1471-72,3649,3653,3799,4984
Correction period ----------------------------------------------- 371-72,
864-65, 978-79, 1319-20, 1323-24, 1472, 2440-41, 2970-71, 3649-50,
3653-54, 3799, 4104-05, 4984
Covered service -------------------- 76,103,148-49,544-45,1416,2445
Current value ------------------------------------- 14,698,2256,3912,4844
Date of termination--------------- ----------- 4639,5035
Defined benefit plan-------- ----- 24594,84,3915,4079-80, 4118,4845,4935
Defined contribution plan-------------------- - 2454,2984,4118,4935
(Xv)





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r
XVI

DEFINITIONS-Continued
Pages in
Legislative History
Definitely determinable-------------------------------- 2679, 3211, 3344
Disqualification date ------ -------------------_---- _- 4030
Disqualified person----- --------------------- 4562, 4590, 4982
Earliest retirement age--------------------- 3000, 3983, 4134, 4870, 4943
Earned income --------------------------- -252, 343, 1000, 1501, 3727
Eligible individual account plan --------------------------____---- 4888
Employee ------------- 8, 70, 98, 490, 601, 691, 2248, 2357, 3306, 3905, 4841
Employee accrued benefit------------------------- 330-31, 839-41, 3621-24
Employee benefit fund (See also Fund) ----------------_--------- 7,
147, 493, 542,601, 616, 959,1413-14, 2357-59, 3308,3744
Employee benefit plan ------------------ ----------- 6-7,
147, 282, 284, 542, 689-90, 958, 1413, 2247, 3743, 3904, 4840
Employee organization -- ----7-8, 71, 99, 490-91, 690, 960, 2247, 3904, 4840-41
Employee pension benefit plan (See Employee benefit plan.)
Employee stock ownership plan--------------- ------------- 4889, 4983
Employee welfare benefit plan (See also Employee benefit plan)----- -- 631,
2246, 3903, 4840
Employer ---- 8, 70, 98, 489-90, 691, 905, 963, 1057, 1360, 2248, 3369, 3905, 4841
Employer-group ------------------------------- 970-71, 1450, 3781, 3790-91
Employer real property --------------------------- 4888
Employer security ------------------_-_ 4888
Enrolled actuary---------------- 1487, 3924-25, 4170, 4850, 5010
Excess benefit plan------------- -------------------4845
Excess contributions ---- ---------- 2544-45, 2975-76, 4186-88, 4973-74
Experience deficiency ---- ----------- 74, 102, 243, 494, 602, 1073, 1612
Experience loss---------------------------- ------- --2661, 3194
Fiduciary --------------- ----------------------------------- 12-13,
150-52, 286, 372, 546, 614-15, 695, 962, 975-76, 1171, 1417, 1469-70,
2253, 2257-58, 2458, 2468, 3300, 3306-09, 3747, 3796, 3910-11, 4590,
4843, 4982-83
Fiscal year of the plan (See Plan year.)
Fixed-contribution multiemployer plan ------- -------------- 76-77
Full funding limitation ------- -------------------------- 1128,
2431, 2961-62, 3202, 4004-05, 4195-96, 4879, 4923-24
Fully funded---------------------------- 74, 101-02, 493, 602
Fund (See also Employee benefit fund)---------- 71, 99, 491, 542, 3306
Funding ------------------------ 74, 102, 494, 595, 1620, 2354, 3379
Government plan ---- ----------- 2449, 2979, 3914, 4113, 4844-45, 4933
Guaranteed benefit policy------------------------- 4882
Hour of Service---------------- 4860, 4863, 4906, 4911
Individual account plan -----------------------3915, 4845, 4888
Individual retirement account ------------------------ 4194, 4966
Individual retirement annuity------------------------ 4196, 4967
Industry or activity affecting commerce------ ------------- -- -9,
70, 97-98, 489, 692, 960-61, 2249, 3906, 4841
Initial unfunded liability --7------------------ 73, 101, 493
Initial unfunded past service liability----------------------- 3639-40
Insurer -----------------------------4882
Interested party------------------------- 1386, 530
Investment manager-- _--.------------------- 3917, 4846
Joint and several liability-- -------------- ----------------4983
Liability ------- ------------------------- 4712
Liberal ---___ -------------------------- 121
Mandatory contributions ----------- ---------- ------- 333,
844, 929, 1152, 1392, 2416-17, 2853, 2947, 3626, 3721-22, 3990, 4081,
4868, 4918, 5033
Market value ------------------- 13, 150, 286, 545, 1416-17, 3747
Market obligation--------------------- 4889
Member of family (See also Relative)------------- 977, 1470, 3797, 4983
Money purchase plan--------------- 72, 100, 492, 908, 1372, 3702, 4559
Month ------------------------------- 833,1284,3613







XVI

DEFINITIONS--Continued
Pages in
Legislative History
Multiemployer plan------ --------------- ------------------------- 104,
496, 602, 894-95, 1158, 1358-59, 2258, 2357, 2451-52, 2634, 2981,
3166, 3306, 3688-89, 3916-17, 4115-16, 4532, 4846, 4934, 5010
Named fiduciary_--------------------------------- ---4564, 4882
Net assets--------------------------- 2294,3961
Net worth of employer--------- ----- 933, 1155, 1397, 3726, 4643, 5036
Non-basic benefits-----------------------------------4633, 5011
Nonfrfeitable ---------------------------- 2251-52, 3306, 3909, 4843
Nonforfeitable pension benefit--------- 12, 148, 285, 544, 695, 1414-15, 3745
Nonforfeitable right------ ------------ 75, 103, 494-95, 602, 2357, 3306
Normal retirement age (Set also Regular retirement age) ---------- 76,
103, 239, 495, 602, 1119, 2409-10, 2939-40, 3911, 4073-74, 4540, 4913
Normal retirement benefit (See also Regular retirement benefit)----- 75-76,
103, 495, 602, 4843, 4913
Normal (service) cost--------- 74-75, 102, 494, 602, 699, 2257, 2357, 3912, 4844
One year break in service----------------------------- 4864,4911-12
Owner-employee -------------------------------------- 1151, 3854
Partial termination..-------------- 2296, 3346, 3729, 4013, 4643, 4659, 4670
Participant ----------- ------------ --------- 8,
70, 98, 490, 691, 877, 959-60, 1342, 1483-84, 1840, 2248, 3671-72,
3905, 4841
Partnerships; trust----------------------------- 976-77, 1470, 3797, 4983
Party in interest ------ --------------------- 9-10,
151-52, 282-83, 370, 546-47, 692-93, 956, 973-75, 1171, 1417-18,
1466-68, 2249-50, 2256-57, 3306, 3748-49, 3793-96, 3797, 3906-07,
3910-11, 4590, 4841-42, 4981-82
Pension benefit--------- -------- 76, 103-04, 149, 495, 545, 1416, 3745
Pension plan (See also Retirement plan)------------ 71-72, 99, 492, 1839
Person ----------------------- 9, 71, 98, 490, 691, 960, 2248, 3905, 4841
Plan (See Employee benefit plan.)
Plan sponsor------------------------------- 4842
Plan year--- ------------------ ------- 4846
Portability ---- --------- ---- ---------------- 596
Present value---------------- -------- ---14, 698-99, 2256, 3912, 4844
Present value of annuity certain--------- ------- 699-700, 2257, 3912
Present value of erunderfnding ----- -------------- ----- 4038
Pro rata share -------- ----------------- 913-14, 1376, 3705
Professional individuals------------------------ 5023
Professional service employer---- -- ------------------- 5023
Profit-sharing plan --- ---------------- ------1338
Profit-sharing retirement plan -- ----72, 90-100, 491-92, 601, 2357, 3306, 3668
Prohibited transaction__ 369-70, 965-67, 1163-65, 1460-61, 1614,1728, 3787-88, 4978
Proprietary employee -- --------930-31, 1151, 1189, 1533, 1707, 1778, 3758-59
Qualified actuary--------------------------2265
Qualified employer real property---- ----------- 4584-85,4889
Qualified employer security-------- -------------- 4584, 4889, 4983
Qualified insurance carrier ---------- 77, 105, 496-97, 877, 1342-43, 3671
Qualified joint and survivor annuity--------- 3000, 3983, 4134, 4870, 4943
Qualified joint and survivor option ---- --------------- 2556-57, 3090
Qualified plan---- --- ---------------- 877, 1341, 3671
Qualified public accountant ----------- 18-19, 704-05, 2263-64, 3923, 4849
Registered plan ----------------------------- 72, 100, 492
Regular retirement age (See also Normal retirement age) --- 14, 698, 2255-56
Regular retirement benefit (See also Normal retirement benefit)------- 13,
695, 2252, 3911
Relative (See also Member of family) ------ ---------------- 10,
146, 283, 541, 693, 1412, 2250, 3743, 3907, 4842
Retirement plan (See also Pension plan) ---- ----------_ 1438, 3768
Security ------ ---------------------------------- 12,
149-50, 286, 544-45, 695, 1416, 2252, 3746-47, 3909-10





S 25-028 O 76 vol 1 2







XVIII

DEFINITIONS-Continued
Pages in
Legislative History
Separate account------------------------------......11,
147-48, 284, 54243, 694, 959, 962-63, 1414, 1465-66, 2251, 3744,
3792-93, 3908, 4842
Shareholder employee ---- ------------------------------- 2518, 3048-49
Special payment----------------------------------- 75, 102-03, 494
State ------------------------------------------------------------- 9,
69, 97, 489, 691-92, 877, 960, 2248-49, 2254-55, 3672, 3905-06, 4841
Stockholdings ----------------------------------- 976,1469-70, 3797, 4983
Substantial business hardship -------- -------------------- 1130,
2435-36, 2669-71, 2965-66, 3206, 4099-4100, 4880, 4925
Substantial economic hardship-------- ---------- .. 1304-05, 1332-33, 3634
Substantial economic injury -- ---.-.-----128-29, 236-37, 521, 589, 628, 1822
Substantial employer------------------ 993-94, 1158, 1358, 3687-88, 5010
Substantial owner-------------------------- 4029, 4636-37, 5024
Substantial (plan) improvements----- ------------------- 1626, 1721
Successor plan ----------------------- 1148, 1371, 3700, 4028, 5022
Supplementary plan ------------------ 3307, 3915-16, 4874, 4940
Target benefit plan --- ------ -- 2663-64, 3196, 3335, 3380, 3402, 4551
Taxable period--------------------------- 370, 977,1470-71, 3798, 4983-84
Termination benefit ----- --------------------------- 2319
Trustee responsibility------------------------------- ---- 4886
Unaffiliated employers--------------- ----- 77, 104-05, 496
Unfunded accrued liability ----- ---------------- 2258, 3913, 4844
Unfunded liability -7-------------------- 73-74, 101, 494, 4712
Unfunded vested liabilities------------- ----------------- 77, 105, 497
Vested liabilities ---- --------- 14, 77, 105, 497, 698, 2256, 3911-12, 4844
Vested right (See Nonforfeitable right.)
Wage increase index------------------------------------------- 3348
Waived funding deficiency------- --------------------------- 860,
1314, 2336, 2966, 3644,4100, 4880,4925
Year of credited service ---------------- ------------- 4026
Year cf participation ------------------------ 4867, 4916
Years of plan participation---------------------- 237
Year of service--------------------------- 833,
838-39, 1285, 1290-91, 1700-03, 2397-98, 2408, 2413, 2632-35 2646,
2850-51, 2854-57, 2927-28, 2938, 2943, 3164-65, 3178, 3302, 3319-21,
3613, 3619-21, 3987-88, 3991-94, 4072, 4529-30, 4536, 4860, 4863,
4866,4906, 4911











SREPORTING AND DISCLOSURE
Pages in
Legislative History
Amendments
See:
Plan description, registration, amendments, and documents-up-
dating.
Summary plan description--updating.
Actuarial report, filing requirements--------------------- ---- 27-28,
163-64, 297-98, 558-59, 631, 705-06, 993-94, 996, 1485, 2264-65,
2366, 2501-02, 2682, 3032-34, 3214-15, 3298-3309, 3461, 3760-61,
3810-11, 3924, 3932-34, 4166-68, 4522, 4524-25, 4629-30, 4668, 4741,
4759-60, 4848-50, 4852-53, 4952, 4954-55
See also:
ENFORCEMENT-Reporting and disclosure requirements-generally.
FUNDIN--Funding status reports.
MISCELLANEOUs-Actuaries-standards and qualifications for.
Annual report or return:
Disclosure to participants ----------------- ---- 28-30,
164-66, 299-300, 560-62, 614, 631, 701, 717-18, 1432-33, 2260, 2275-
77, 2365, 2367, 3298-99, 3377, 3461, 3495-96, 3762, 3764, 3919, 3937,
3939, 4526, 4742, 4753, 4813, 4847-48, 4856
Filing requirements --------------------56-64,
291-99, 540-41, 552-60, 614, 630, 703, 711-16, 1056-57, 1061, 1215-
16, 1422-32, 1561-62, 1603-04, 1664, 1728-39, 2261-73, 2366, 2495,
3026, 3298-99, 3379, 3461, 3495, 3752, 3754-62, 3890, 3921-35, 4160
4522-24, 4742, 4759, 4847-54, 4952
See also:
Actuarial report, filing requirements.
ENFORCEMENT-Reporting and disclosure requirements.
Financial statements, annual audit of.
Audit tax (See Plan description, registration, amendments, and docu-
ments-fee requirements.)
Certificate of vested rights (See Statement of vested rights.)
Charges to participants for disclosure:
See:..
Annual report or return-disclosure to participants.
Plan description, registration, amendments, and documents-dis-
closure to participants.
Summary plan description-disclosure to participants.
Effective dates ---------------------------------- 51,
189, 321, 586, 620, 632, 743, 831-32, 992, 996, 1061, 1281, 1454, 1484,
1488, 2301, 2369, 2490, 2505, 2747, 2750, 3021-22, 3036, 3280, 3282,
3301, 3378, 3612, 3784, 3809, 3813, 3895, 3970, 4155-56, 4170, 4527,
4653, 4697, 4715, 4742, 4762, 4810, 4834, 4859, 4948, 4955-56
Exemptions (See Secretary of Labor--exemptions.)
Financial statements, annual audit of----------------------------- 18,
156, 290-91, 551-52, 614, 631, 703-04, 706-11, 1423, 1604, 1856, 2261-
62, 2366, 3298-99, 3461, 3753-54, 3921-23, 4522-25, 4692, 4742,
4759-60, 4848-49
See also MISCELLANEous-Accountants-standards and qualifications
for.
Form and detail of reports (See Secretary of Labor-form, detail, and in-
spection of reports and records.)
Insurance carriers and other entities, furnishing of information ------ 17-18,
24-25, 155-56, 161-62, 290, 551, 557, 710-11, 713, 1422-23, 2262,
2269-70, 2366, 3298-99, 3753-59, 3921-23, 3930, 4524, 4848-49, 4853-
54
Need for improved disclosure--------------------- --- 597,
613, 1600, 1664, 1872, 2357-58, 3294-96, 3305, 3307, 3369, 3375,
3578, 3583, 3592, 4661, 4665-66, 4668, 4694, 4742
(XIX)








XX

REPORTING AND DISCLOSURE-Continued
Pages in
Plan description, registration, amendments, and documents: Legislative History
Certification of registration ------------------- ----------------106,
113-15, 497-98, 506-08, 613-14, 2343, 2374, 3304-05, 4054-56
Disclosure to participants----------------------------------- 28-30,
164-66, 287, 296-97, 560-62, 597, 614, 631, 701-02, 716, 1432-33,
1603, 2260, 2275-76, 2355, 2365-67, 3298-99, 3375, 3379, 3386-87,
3397, 3461, 3495-96, 3762, 3764, 3919, 3937-39, 4526, 4665, 4708,
4723, 4753, 4759, 4847-48, 4855-56
Fee requirement------------------------ 108,
500, 990-92, 1178-80, 1482-83, 1624, 1632, 1718, 2340-41, 3807-09
Filing requirements ---- -- -------- 16-17,
28, 115-16, 154, 164, 288-89, 298-99, 508, 549-50, 560, 624, 631, 714-
16, 1421, 2260-61, 22 3, 2465-66, 3298-99, 3304-05, 3461, 3495, 3751-
52, 3762, 3920-21, 3935, 4522, 4759-60, 4847-48, 4854
Updating ---------- -------------------- 16,
154-55, 289, 629, 702, 716-17, 1433, 2260, 2366, 3298, 3938, 4526,
4723, 4854-55
See also:
ENFORCEMENT-Reporting and disclosure requirements.
Summary plan description.
Plans covered--------------------------------14-15,
111-13, 152-53, 286-87, 504-06, 547-48, 601, 604-05, 614, 624, 631,
700-01, 1419, 2259, 2356, 2365, 2495, 3026, 3296, 3378, 3385, 3749,
3752, 3888, 3918-19, 4160, 4522-23, 4742, 4846-47, 4852-53
Previous law ------------------------------ 590-91,
613, 1085, 2351, 2358, 2603, 3134, 3295-96, 3305, 3307, 3377, 3386
Public inspection of reports------- --------- 28-29,
36, 108, 164, 299, 500, 560, 719-20, 1057-59, 1061, 1215-16, 1431-32,
1435-36, 1563-64, 1663, 22 3-74, 22 9, 2466-68, 2478-80, 2490, 2750,
3009-12, 3282-83, 3299, 3762, 3766-67, 3889, 3895, 3935, 3942, 4143-
46, 4526, 4714, 4767--68, 4854, 4857, 4947-49
Recordkeeping requirements ---- ---------------------- 37,
108, 720, 2279-80, 2368, 2653-54, 3186, 3300, 3307, 3942-43, 4957
See also:
ENFORCEMENT-Reporting and disclosure-recordkeeping requirements.
PARTICIPATION AND VESTING-Recordkeeping requirements.
Registration requirements:
See:
Plan description, registration, amendments, and documents.
Statement of vested rights.
Regulations/rules, general authority, Secretary of Labor ----------108,
115, 318, 500, 743, 773, 1484, 1856, 2339, 2374, 3304, 3741-42, 4050-51,
4901
Secretary of Labor:
Exemptions ----- --------------------------153-54,
287-88, 548-49, 629, 714-15, 1057, 1420, 2274, 2366, 2495, 3026, 3298,
3461, 3750, 3888, 3935-36, 4160, 4522-23, 4525, 4671, 4742, 4760, 4852,
4854-55
Form, detail, and inspection of reports and records------------15-16,
108, 113, 287, 500, 624, 631, 1056-57, 1856, 2339, 2365, 2495, 3298-99,
3764-65, 3919, 4050-51, 4522-24, 4526-27, 4759-60, 4767-68, 4848,
4857-58
Rejection of reports_29, 624, 715-16, 2274-75, 2366, 3299, 3936-37, 4524, 4855
Simplified reports -- ------------ 1856, 3750-51, 4523, 4742, 4854-55
Variances----- 287-88, 1420, 3307, 3750, 4523, 4669, 4742, 4760, 4854, 4858
Secretary of the Treasury, registration of plan (See Statement of vested rights.)
Statement of nonforfeitable rights and benefits (See Statement of vested rights.)
Statement of rights under the Act -------------- 287, 629, 3919-20, 4856
Statement of vested rights:
Disclosure to participants---- ----------------- 30-31,
116, 300-01, 508-09, 605, 625, 701, 718, 1075, 1099, 1106-07, 1146,
1279, 1434, 1623, 1718, 2277-78, 2367, 2493-94, 2500-01, 2595, 2619,
2746, 3025, 3031-32, 3126, 3150, 3279-80, 3299, 3307, 3318-19, 3379,
3430-31, 3461, 3610, 3764, 3941, 4159, 4165-66, 4526, 4545, 4652-53,
4668, 4699, 4739, 4856, 4951-52








XXI

REPORTING AND DISCLOSURE-Continued
Pages in
Statement of vested rights-Continued Legislative History
Filing requirements----------- ---------- 30-31,
116, 300-01, 508-09, 605, 625, 828-29, 1075, 1099, 1106, 1145-46,
1277-78, 1623, 1719, 1723, 2277-78, 2367, 2491-93, 2619, 2746-47,
3022-24, 3150, 3279-80, 3299, 3318-19, 3331, 3430-31, 3461, 3607-09,
3939-41, 4156-58, 4652-53, 4668, 4699, 4739, 4753, 4768, 4804, 4950-
51, 4961-62
Multiemployer plans -----------------------------2494,
2740, 3025, 3307, 3319, 3331, 3344, 3380, 3431, 3473, 4159, 4545,
4653, 4669,4742, 4768,4856
Secretary of HEW, duties regarding vested pension benefits-------- 31,
830-32, 1075, 1099, 1106-07, 1140, 1145-46, 1279-81, 1613-14, 1624,
1650, 1719, 1723, 2278, 2499-2501, 2595, 2619, 2654, 2745-46, 3030-32,
3126, 3150, 3186, 3278-80, 3299, 3318, 3331, 3430, 3474, 3496, 3580,
3610-11, 4164-66, 4652-53, 4669, 4699, 4739-40, 4753, 4776, 4804,
4954
Transmission of information to Secretary of HEW ----------- ---- 31,
605, 718-19, 829-30, 1075, 1099, 1106, 1152, 1278-79, 1624, 1719,
1723, 2278, 2367, 2493, 2595, 2619, 2746, 3024-25, 3126, 3150, 3279-80,
3299, 3318, 3331, 3430, 3609, 3941, 4158-59, 4652-53, 4699, 4739-40,
4753, 4768, 4804, 4951
Voluntary filing ------- ----------- ---- ----------- 829,
1278, 2493, 2747, 3024, 3280, 3609, 4158, 4951
See also ENFORCEMENT-Reporting and disclosure requirements.
Summary plan description:
Disclosure ------------------------------------- -- 551,
614, 631, 1432-33, 3763, 4525, 4668, 4708, 4714, 4723, 4742, 4753,
4755-56, 4796, 4847-48
Filing requirements ----------------- --------- 629,
4525-26, 4847-48, 4854
Updating ------------------------------ ------- 551,
631, 1433, 3763-64, 4525, 4723, 4848, 4855-56
See also ENFORCEMENT--Reporting and disclosure requirements.
Terminal report, filing requirements ------- ------------- 16,
153, 287, 548, 629, 701, 714, 1420, 2260, 2273, 2295-96, 2365, 3299,
3750, 3919, 3935, 3962-63, 4525, 4837, 4760
Variances:
Disclosure of:
See:
FUNDING-Variances--disclosure to participants.
PARTICIPATION AND VESTING-Variances--disclosure to participants.
From reporting and disclosure requirements (See Secretary of Labor-
variances.)







"lI' %^l














PARTICIPATION AND VESTING
Pages in
Legislative History
Assignment or alienation of benefits -------------------------- 56,
119, 238, 511-12, 625, 1334-36, 1720, 2470-71, 2490, 2617, 2655-56,
3002, 3021-22, 3148, 3188-89, 3318, 3326-27, 3332, 3429, 3664-68,
4136, 4155-56, 4547, 4871-72, 4944, 4950
Back-loading provisions (See Vesting and benefit accrual, special rules-
rate of current benefit accrual.)
Collective-bargaining plans---- ------ --- ----------_ 55,
335-36, 608, 627, 51, 834-35, 874-i5, 1042-45, 10 2-' 3, 1089-90,
1109-11, 1116, 1119, 1123, 1285, 1335, 1547-50, 1612, 1719, 1822,
2371, 2401-02, 2445-48, 2595, 2606, 2636-37, 2639-40, 2931-32,
2975-78, 3126, 3137, 3168-69, 3171-72, 3302, 3312-13, 3322, 3408,
3417-18, 3423, 3442, 3460-61, 3540-41, 3614-15, 3664-66, 3772-76,
4065-66, 4109-12, 4531, 4651, 4664-65, 4675-76, 4697, 4738, 4762,
4770, 4780, 4874, 4907, 4931, 4939-40, 4942
See also Variances-collective bargaining plans.
Effective dates ------ ---------------------57,
189, 248-49, 339, 586, 622, 634, 751, 836-37, 851-52, 1073-74, 1090,
1110, 1113, 1124, 1215, 1287-88, 1303-04, 1336, 1612, 1625, 1648,
1720, 1808-09, 1811, 1874, 2311, 2371, 2465-68, 2490, 2594-95, 2607,
2611-12, 2639-40, 2659-60, 20396-98, 3021-22, 3125-26, 3138, 3143,
3171-72, 3192, 3303, 3312-13, 3315, 3322, 3324, 3333-34, 3380,
3407-08, 3418-19, 3423, 3442, 3617, 3633-36, 3666, 3875-76, 3970,
3994-95, 4130-32, 4155-56, 4533-34, 4664, 4697, 4715, 4737, 4762,
4765, 4779, 4807, 4819, 4830, 4874-75, 4939-42, 4950
Joint and survivor annuities ------------------------------ 577,
601, 621, 633, 733-34, 874-75, 1214, 1334, 1336, 1617, 1720, 1772,
1831-35, 1864-65, 2290-91, 2370, 2468-69, 2490, 2594, 2617, 2654-55,
2707, 2398-3000, 3021-22, 3125, 3148, 3187-88, 3240, 3301, 3318,
3331-32, 3497, 3510-16, 3571-72, 3664, 3666, 3981-83, 4132-34, 4155-
56, 4546-47, 4669, 4679, 4681, 4738, 4752, 4756-57, 4765, 4805, 4832,
4942-44, 4950
Mergers or consolidations of plans------------------------------- 2469-70,
2490, 2617, 2655, 2711, 3001-02, 3021-22, 3149, 3188, 3243-44, 3318,
3332, 3429, 4135-36, 4155-56, 4652, 4872, 4935-36, 4944, 4950
More liberal plan provisions _-----------------------------121,
513-14, 607, 625, 1113, 1115, 1719, 2309, 2470, 2642, 3173, 3301, 3323,
3380, 3401, 3979, 4636, 4735-36, 4786, 4791, 4865
Multiemployer plans ---------------------------------607,
1108, 1116, 2448, 2451-52, 2634, 2646, 2978, 2981-82, 3176, 3188, 3321,
3326, 4115-16, 4532. 4538, 4738, 4810, 4873, 4932, 4934
See also Variances-multiemployer plans.
Need for:
Participation standards ____------------------ 1069,
1071, 1078, 1081, 1087, 1107-08, 1718, 1761, 1773, 1845-46, 2352-53,
2360-61, 2592, 2600, 2631-32, 3123, 3131, 3153-54, 3296, 3305. 3311,
3319, 3370, 3374, 3406, 3415-16, 3460, 3475, 4700, 4734-35, 4790-91,
4800-401
Vesting and benefit accrual standards-- ------------------ 593-95,
1071, 1078, 1082, 1087, 1113-14, 1602, 1619-20, 1634, 1668, 1763-64,
1773-74, 1791-1812, 1822-27, 1874, 2353, 2592, 2600-01, 2607,
2641-42, 3123, 3131-32, 3138-39, 3173-74, 3296, 3305, 3323, 3495,
3498, 3572-76, 3591, 4673, 4682, 4687-88, 4700, 4716, 4735, 4791-92,
4800-01, 4811, 4831
Participation, basic standards:
Breaks in service ----------- ------------56,
2399-2400, 2605-06, 2633-34, 2929-30, 3146-47, 3175-76, 3312, 3320-
21, 3992, 4063-64, 4530-31, 4751, 4754-55, 4861, 4875, 4906-07, 4941
(XXII)








XXIII

PARTICIPATION AND VESTING--Continued
Participation, basic standards-Continued
Breadth of coverage: L egislative s in
ee:Legislative History
Collective-bargaining plans.
INTERNAL REVENUE CODE-Antidiscrimination rules.
Participation, special rules-non-resident aliens.
Vesting and benefit accrual, special rules--comparability of
plans. 3
Maximum age----------------------------------------------
1108, 2304, 2397, 2606, 2634-35, 2927, 3147, 3176, 3312, 3321, 3417,
3973, 4061, 4529, 4774, 4813-14, 4860, 4906
Minimum age and service-----------------------------------52-53,
116, 234-35, 328, 509, 605-06, 625, 745, 832-33, 1072, 1087, 1108, 1220,
1283, 1611, 1625, 1639-41, 1648, 1700-02, 1719, 1774, 1821, 1875, 2304,
2360, 2369-70, 2396-97, 2599, 2610, 2638, 2926-27, 3124, 3135, 3164,
3301, 3311, 3319, 3352, 3380, 3395, 3407, 3415-16, 3456, 3460, 3495-96,
3508-10, 3549, 3572, 3588, 3612-13, 3972-73, 4060-61, 4527, 4529,
4660, 4674, 4687, 4695, 4700, 4713-14, 4735, 4753-54, 4778, 4786-87,
4792, 4800, 4805-06, 4812,4818, 4825, 4860,4905-06
Predecessor employer service --------------------------- 1108,
2448, 2634, 2978, 3166, 3321, 4112, 4531, 4873, 4932-33
See also Mergers or consolidations of plans.
Pre-participation service------------- 55-56, 2633-34, 3165-66, 753-54, 4861
Year of service:
General rule------------------------------------------ 1108,
1284, 1700-03, 2397-98, 2604-05, 2632-34, 2927-28, 3135-36, 3164-66,
3303, 3416-17, 3613, 3735, 3751, 3754, 3991-92, 4061-62, 4529-30,
4659, 4674, 4713-14, 4860, 4906
Maritime industries------------------- 3319-20, 3754,4530, 4860, 4906
Temporary and seasonal employees-------------------------- 1108,
1112, 1771, 2398-99, 2615, 2643, 2928-29, 3136, 3165, 3311, 3319-20,
3416-17, 3540, 3572-74, 3992, 4062-63, 4530, 4735, 4754, 4806, 4860,
4906
iee also ENFORCEMENT-Participation and vesting standards.
Participation, special rules:
Air pilots ------ 2402,2606,2637,2932, 3137,3169,3418,3541, 4066,4531, 4907
Controlled groups of corporations/Affiliated employers_--------- 835,
1111-15, 1286, 2448-49, 2688-39, 2978-79, 3170-71, 3613, 4112-43,
4533,4873-74,4933
Keogh (H.R. 10) plans --- 1107-09, 1612, 1718, 2631, 2635, 3162, 3167, 4532
Non-resident aliens ----------------------835,
873-74, 1111, 1285-86, 1333-34, 2402, 2637-38, 2932, 3169-70, 3615,
3863, 4066, 4531, 4908
Payment of benefits, commencement of ----- --- --------- 57,
238-39, 749, 1720, 2309-10, 2370, 2471-72, 2608-09, 2635, 2641, 2649,
2657, 3140, 3166, 3173, 3181, 3190, 3303, 3314, 3329, 3333, 3401, 3420,
3736, 3919-80, 4136-37, 4548-49, 4724, 4735, 4871, 4914-15
Plans covered-general rule and exclusions:
Labor requirements ------------------------51-52,
111-13, 504-05, 547-48, 604-05, 607, 624, 744-45, 2302-03, 2356,
2469, 3301, 3313, 3321-22, 3333, 3379, 3384, 3970-72, 4066-67,
4085-86, 4527-28,4687, 4731, 4859
Treasury requirements -----------------------248,
1720, 2403, 2421, 2594, 2606-07, 2635, 2659, 2932-33, 2950-51, 3125,
3137-38, 3167, 3194, 3416, 3444, 4527-28, 4908, 4919-20
See also INTERNAL REVENUE CODE-Antidiscrimination rules.
Voluntary coverage-------------------------- 2403-04,
2421, 2606, 2635, 2659, 2933, 2951-52, 3137, 3167, 3192, 3313, 3321-22,
S3418,3972,4067,4528, 4874-75,4908
Previous law:
Participation standards ---- ----------------------1070,
1079, 1107, 1109, 1702, 2606, 2619-20, 2631, 3137, 3151, 3163, 3295-96
Vesting and benefit accrual standards ---------------- ---591,
1112-13, 1122, 1624, 1875, 2351-52, 2600-01, 2619-20, 2640-41, 2652,
3131-32, 3151, 3173, 3185, 3295-96, 3312, 3322-23, 4673, 4693








XXIV

PARTICIPATION AND VESTING-Continued
Pages in
Legislative History
Recordkeeping requirements--------------- ------------------- 847-48,
1117, 1299-1300, 1791, 2421-22, 2653-54, 2952, 3186, 3331, 3629-30,
4086, 4545, 4669, 4872-73
See also:
ENFORCEMENT-Reporting and disclosure requirements.
REPORTING AND DiscLOUREp-Statement of vested rights.
Regulations/rules, general authority, Secretary of Labor ----------- 108,
500, 773-74, 1856, 2308-09, 2339, 2374, 3304, 3311-12, 3321. 3741-42,
3860, 3901, 3910, 3987, 3991-92, 4050-51, 4061-62, 4530, 4626-27,
4901
Revenue effect ---- -----__ ---- ----------------------_ 1105-06,
1112, 1123, 2628, 2630-31, 2640, 2660, 3160, 3162-63, 3172, 3192-93,
3440-41, 4699
Sex discrimination (See MISCELLANEOUS-Discrimination based on age,
sex, etc.)
Social Security benefit provisions:
Integration ----- --------------------------- 1696-97,
1716, 2618, 2656-57, 2758-59, 3149, 3189, 3290-92, 3429-30, 4547-48,
4683, 4727, 4731-32
Offsets --- -----------------------------------749-51
1716, 2310-11, 2371, 2472, 2490, 2617-18, 2656, 3003-04. 3021-22,
3150, 3190, 3303, 3318, 3332-33, 3429, 3980-81, 4137-38, 4155-56,
4547, 4699-4700, 4866-67, 4871, 4945, 4950
Transfers of plan assets (See Mergers or consolidations of plans.)
Variances:
Authority to grant------------ ----------128,
236-37, 520-21, 588, 607-08, 626-27, 764-65, 1304-05, 1626-27, 1720,
1822, 2329-30, 2373, 2612, 2643-44, 2654, 3143, 3175-76, 3186-87,
3302, 3331, 3380, 3408, 3423-24, 3633-35, 3941-42, 4545-46, 4676,
4737, 4742, 4756, 4809, 4813, 4872, 4920
Collective-bargaining plans------------------- 128, 521-22, 627
Disclosure to participants ----------------------------166-67,
301, 552, 632, 1434, 2329, 3315-16, 3331, 3339, 3764-65, 4041
Multiemployer plans -------------------------- 2454-
55, 2594, 2612, 2654, 2984-85, 3125, 3143, 3186-87, 3315-16, 3408,
3423-24, 4118-20, 4940
Vesting and benefit accrual, basic standards:
Breaks in service -----------------------119-
20, 237, 512-13, 606-07, 625, 747, 838, 1116-17, 1289, 1822, 2308-09,
2938, 3302, 3416-17, 3421, 3574, 3618, 3976, 3993, 4072, 4535-37,
4755, 4863-64, 4869, 4873, 4875, 4911-12, 4941
Employee contributions ---------------------- 328,
837-38, 841, 1288-89, 2370, 2404, 2413, 2420, 2642, 2934, 2943-44,
2951, 3174, 3325, 3419, 3618, 3973, 3986-91, 4068, 4077-78, 4085, 4535,
4537, 4674, 4735-36, 4756, 4861, 4867-69, 4908, 4916, 4935
Employee's accrued benefit -------- -------------------330-
31, 839-40, 1119-20, 2408-09, 2648, 2938-39, 3180, 3327-28, 3621-24,
4072-73, 4540, 4736-37, 4756, 4843-44, 4912
Employer contributions, schedules for:
Graded standard ------------------------ 53-
55, 117-18, 235, 509-11, 587-88, 594-95, 625, 838, 1072-73, 1087-88,
1114-15, 1219-21, 1289, 1611, 1624-25, 1638-39, 1648, 1718-19, 1773-
74, 1790-1811, 1821-27, 1874-76, 2305-06, 2353, 2361, 2370, 2405-06,
2409, 2593, 2608, 2642-43, 2935-36, 2940, 3124, 3139, 3174-75, 3301,
3313-14, 3323-24, 3352, 3358, 3370, 3380, 3387-88, 3407, 3419-20,
3457, 3494-95, 3499, 3974-75, 3978, 4069-70, 4074, 4534-35, 4660,
4674-75, 4687-88, 4695-96, 4712, 4735-36, 4751-52, 4755, 4776, 4779,
4787, 4792, 4801, 4807, 4812, 4819, 4830-31, 4861, 4909
Rules combining age and service------------------------- 328-
29, 1088, 1114-15, 2306, 2370, 2405-06, 2409, 2599-2600, 2614, 2648-
49, 2935-36, 2940, 3125-26, 3139, 3175, 3301, 3313, 3323-24, 352,
3358, 3370, 3387, 3407, 3420, 3457, 3494-95, 3499, 3974-75, 3978,
4069-70, 4074, 4534-35, 4658, 4660, 4675, 4688, 4696, 4712, 4736,
4751-52, 4755-56, 4764-65, 4776, 4779, 4787, 4792, 4801, 4807, 4812,
4819, 4825, 4830-31, 4862, 4909







XXV

PARTICIPATION AND VESTING--Continued
Pages in
Legislative History
Vesting and benefit accrual, basic standards-Continued
Employer contributions, schedules for-Continued
Ten-year rule -------------------------------------------- 53,
55, 746-47, 852, 1073, 1090, 1114, 1290-91, 1625, 1648, 1719, 1821,
1874, 2305-07, 2370, 2405-06, 2409, 2593, 2608, 2642-43, 2934-36,
2940, 3124, 3139, 3175, 3301, 3313, 3323-24, 3352, 3358, 3370, 3387-
88, 3407, 3420, 3457, 3494-95, 3499, 3620, 3973-75, 3978, 4068-70,
4074, 4543-44, 4660, 4675, 4688, 4695-96, 4712, 4735-36, 4751-52,
4755, 4764-65, 4776, 4779, 4787, 4792, 4801, 4807, 4812, 4819, 4830-31,
4861, 4909,
Prior service credited for ------------------------- 99-
100, 118, 120, 512, 588, 600, 606, 625, 747, 839, 1073, 1088-89, 1115-
16, 1291-92, 1611, 1625, 1638-39, 1648, 1718-19, 1810-11, 1822, 1873,
2307-09, 2370, 2407-08, 2503, 2609, 2644-46, 2937-38, 2978, 3140,
3176-78, 3301, 3314, 3325-26, 3380, 3402-03, 3420-21, 3465, 3619-21,
3976-77, 4071-72, 4535-37, 4675, 4737, 4779, 4786-87, 4801, 4807,
4819, 4863, 4911, 4932-33
Year of Service:
General rule ----- --------------------- 120-
21, 237, 513, 838-39, 1116, 1289-90, 1822, 2308-09, 2408, 2413-14,
2633, 2646, 2938, 2944, 3164-65, 3178, 3302, 3326, 3619-20, 3987-88,
3994, 4072, 4078, 4536, 4670, 4754, 4863, 4866-67, 4911, 4915-16
Maritime industries---------- 4530, 4536, 4754, 4864, 4867, 4911, 4917
Temporary and seasonal employees ---- -------------- 1838,
2646, 3178, 3326, 3572-74, 4536, 4754, 4832, 4863, 4867, 4911,
4916-17
See also ENFORCEMENT-Participation and vesting standards.
Vesting and benefit accrual, special rules:
Accelerated vesting (See comparability of plans.)
Allocation between employer and employee contributions -------- 331-34,
842, 1119-21, 1294-97, 2414-18, 2651-52, 2944-48, 3183-84, 3329-30,
3624-27, 3988-91, 4078-82, 4543, 4867-68, 4917-19
Cash out and pay back provisions ------------------ ------ 2409,
2647-48, 2939, 3179-80, 3420, 3977, 4073, 4539-40, 4724, 4752, 4869,
S4912-13
Changes in vesting schedules --------- ----------------- 511,
1305, 2309, 2370, 2410, 2647, 2650-51, 2940, 3179, 3182-83, 3301,
3327, 3329, 3343-44, 3634-35, 3978-79, 4042, 4074, 4543, 4546, 4699,
4864, 4913-14
Class year plans -------------------------------- 118-19,
237-38, 511, 845-46, 1117, 1298, 2370, 2420, 2653, 2950-51, 3185-86,
3301, 3548-49, 3627-28, 3975-76, 4084-85, 4545, 4863-65, 4911, 4919
Comparability of plans ---------- -- ------------------ 849,
1121-22, 1301-02, 1619-20, 1698-99, 1720, 2423, 2610, 2658-59, 2953-
54, 3141, 3190-91, 3422, 4087-88, 4549, 4739, 4920
Permitted forfeitures, reductions, or suspensions of vested rights-_ 334-35,
749-51, 1117-18, 2407, 2646-48, 2836-37, 3178-80, 3326-27, 3397,
3618, 4070-71, 4538-39, 4669-70, 4738, 4772, 4809, 4862, 4869; 4909-
10, 4919
See also:
FUNDIwG-Retroactive plan amendments.
Withdrawal of employee contributions.
Plan terminations -------------------------- 846-47,
1118, 1299, 1810, 2419, 2641, 2653, 2949-50, 3173, 3185, 3330, 3629,
4083-84, 4544-45, 4919
Rate of current benefit accrual ------ ---------------- 748-49,
2253-55, 2411, 2503, 2543-44, 2609, 2649, 2941-42, 3140, 3181-82,
3302, 3314-15, 3328, 3401, 3421-22, 3514, 3548, 3983-86, 4075-77,
4540-42, 4668-69, 4736-37, 4756, 4762, 4787, 4806, 4865-66, 4914-16
See also Collective-bargaining plans.
Rate of pre-enactment accrual ------------------ 625, 4542, 4866, 4915
Transition rule to meet vesting standards----- ------------- 2306,
2643-44, 2936, 3175-76, 3407, 3423, 3975, 4070, 4675, 4765
See also:
Collective-bargaining plans.
Multiemployer plans.







XXVI

PARTICIPATION AND VESTING-Continued
Pages in
Legislative History
Withdrawal of employee contributions ---- -------------- 50,
329, 748, 846, 1117-18, 1196, 1298-99, 2308, 2473-74, 2657, 3004,
3190, 3301, 3333, 3628, 3977-78, 4138, 4538-39, 4752, 4756, 4862-63,
4871, 4910-11, 4945











'FUNDING
Pages in
Actuarial assumptions: Legislative History
Best estimate of anticipated experience-------....------- 4552,4878,4923
Standards of reasonableness------------- ---------------- 108,
500, 603,, 623 1091-92, 117, 1311-13, 1722, 2429-30, 2515-16, 2680,
2683, 2960, 3147, 3214, 3216-18, 3317, 3345, 3427, 3641, 3643, 4094,
4551-52,4823,4878
See also MIsCELANEoUS-Actuaries--ctuarial advisory board.
Actuaries:
Reports by (See Funding status reports.)
Standards for (See MISCELANEos--Actuaries--standards and quali-
fications for.)
Collective-bargaining plans:
Funding requirements .----.... ---.---.--------------- 1126,
2446-47, 2677, 2976-77, 3209, 3343,4110-11, 4552, 4931
Plan year--------_----------. 2446-47,2667,2976-77,3209, 3343,4110-11
Tax deduction limitations ---------------------- ----- 2447-48,
2677, 2689, 2977-78, 3209, 3221,4111-12, 4560, 4929, 4931-32
Combining and offsetting amounts to be amortized._--------------- 2372,
2427-28, 2674-75, 2958-59, 3206-07, 3302, 3341-42, 4001, 4877-78,
4922
Compulsory funding, arguments against-----------------------__ 596,2354
Controlled groups of corporations, special rule --- ------------ 2448-49,
2452, 2677-78 268, 2978-79, 2982, 3209-10, 3221, 4112-13, 4116,
4983
Cost to employer ------. 1127-28, 2613, 2665-66, 3145,3198, 3336-37, 3398, 3463
Distributions (See Mergers and distributions, special requirements.)
Effective dates..------.------.----.------..---. -------- 65,
189, 248-49, 339, 586, 624, 636, 757-58, 872-73, 1074, 1093, 1139,
1331-33, 1613, 1627, 1650, 1722, 1809-11, 2319-20, 2371, 2465-68,
2594-95, 2617, 2689-90, 2996-98, 3125-26, 3138, 3148, 3221, 3303,
3318, 3408, 3428-29, 3661-62, 3970, 4008-10, 4130-32, 4560-61, 4677,
4715, 4740-41 4762, 4780, 4810, 4881, 4939-41
Experience gains/losses:
Amortization period --------------------------------------- 239-40,
515-16, 1074, 1092, 1129-30, 1612, 1626, 1650, 1721, 2594, 2613-
14, 2661, 2663, 2667-78, 3145, 3200, 3302, 3317, 3334-35, 3337-38,
3381, 3407, 3425, 3457-58, 4550, 4677, 4740, 4757, 4780, 4802
Determination of.--. 859, 1129, 1313, 2667, 3200-01, 3643, 4003-04, 4552, 4878
Frequency of determination--------------------------------- 1073,
1091, 1313, 1612, 1626, 1721, 2434, 2594, 2614, 2663, 2668, 2964, 3125,
3145, 3196, 3201, 3317, 3338, 3407, 3426, 3457-58, 4004, 4098, 4550,
4553-54, 4879,4924
Treatment of certain changes---------------------- --------- 859,
1313, 2430, 2668,2960-61, 3200, 3338, 3643, 4003, 4094-95, 4552, 4878,
4923
See also:
Combining and offsetting amounts to be amortized.
Valuation of assets.
Full funding, special rule------------------- -------- 125,
517-18, 858, 1133-34, 1312-13, 2431, 2675-76, 2961, 3207-08, 3342,
3349, 3642, 4004 4095,4553, 4878-79, 4923-24
Funding methods, changes in------------------------- -- 859,
1137-38, 1313-14, 2430, 2667, 2679-80, 2961, 3203, 3216, 3643, 4002,
4095,4552-3, 4878, 4923
Funding requirements:
Alternate standard for vested liabilities ----- ------------ 2315,
2471, 2594, 2612, 2615, 2661, 2663, 2668-69, 3125, 3144, 3146, 3194,
3201, 3203, 3302, 3316, 3335, 3338-39, 3381, 3407-08, 3424, 3426-27,
3458, 4549-51, 4556, 4676-77, 4757
(XXVII)








A XXVIII

FUNDING-Continued
Funding requirements---Continued Pages in
Minimum standard: Legislative History
Accrued liabilities basis---------- ---------- 122-23,
239-40, 514-15, 625-26, 753-54, 854-5 1073, 1090, 1127, 1502, 1520,
1569, 1571-72, 1612, 1626, 1(21, 186, 2334-35, 23.1, 3125, 3144,
3194-98, 3302, 3316-17, 3334-35, 3381, 3407, 3426-2i, 3519, 4549-50,
4676, 4688, 4696, 4712, 4(40, 4.57, 4480, 4801, 48-6-78
General statement --------------------- 121-22,
514, 626, 453-55, 1013, 1090, 112 1222, 1307-08, 1602, 1646, 1649-
50, 2313-14, 2361, 2424, 2613, 2662, 2955, 3145, 3195, 3294, 3335,
3371, 33#4-.5, 3688, 3396, 3424, 344'i-48, 3457-58, 3493, 3583, 3647,
4549-51, 4668, 4725, 4752, 478 -88, 4807-08, 4812, 4820, 4876, 4921
Vested liabilities basis----------------------- 59-61, 326-27, 754-55
See also:
Collective-bargaining plans.
ENFORCEMENT-Funding requirements.
Experience gains/losses.
Funding standard account.
Level payment method of funding.
Money purchase plans.
Multiemployer plans.
Funding standard account:
Alternate funding standard account --------- 4556-57, 4880-81, 4922, 4926
Establishment/purpose -_---- ------------------ 854,
1126, 1131, 1308, 1722, 2424-25, 2664, 2671-72, 2955, 3186, 3194,
3335, 3339, 3638, 3998, 4089, 4551, 4876, 4921
Funding method----------------------- 2429-30, 2959, 4093, 4878
Insured plans -- ------------------- 861-62, 1133, 3645-46
Operations ---- --- --------------------- 854-57,
1126, 1131, 1308-11, 1722, 2425-27, 2664, 2672-74, 2955-58, 3196,
3204, 3302, 3335, 3339, 3638-41, 3909-4002, 4089-92, 4551, 4876-78,
4921-22
Review of------------------------------- 1126,
1131-32, 2664, 2672-13, 3196-97, 3204, 3339-41, 4551, 4878-79
See also:
Combining and offsetting amounts to be amortized.
Full funding, special rule.
Valuation of assets.
Funding status reports:
Certification of---------------------------------- 123-24,
241, 516-17, 626, 1094, 1125, 1137, 1612-13, 1673-77, 1i22, 2617,
2662, 2683-84, 3147, 3195, 3214, 3309, 3334-35, 3428, 4677
Exemptions -------- --------------------- 126, 242, 518, 626
Filing requirements -- 62-63, 123-25, 240-43, 516-18, 626, 1094, 1137, 1612-13
See also REPORTING AND DISCLOSURE-Actuarial report, filing
requirements.
Insurance contract plans ----------------------242,
518, 861-62, 1316-17, 2438-39, 2612-13, 2678, 2968-69. 3151, 3210,
3316, 3343-44, 3424, 3645-46, 4102-03, 4559, 4876, 4926-27
Interest rate -- ---------------857,
1127, 1311, 2428, 2665, 2959, 3198, 3336, 3641, 4001-02, 4093, 4878,
4922
Level payment method of funding --------------------- 607,
1090, 1127, 2612-13, 2665, 3144-45, 3197, 3317, 3335, 3425, 4550,
4801-02
Mergers and distributions, special requirements ------ 2318-19, 3303, 4007-08
Money purchase plans ------------------------------ 862-63,
1074, 1092, 1126, 1135, 1317, 2663-64, 2676, 2678-79, 3196, 3208.
3210-11, 3335, 3344, 3647, 4551
Multiemployer plans:
Funding requirements --- -------------------------- 242-43,
627, 1093, 1134-35, 1613, 1626, 1650, 1721, 2594, 2613, 2661, 2663,
3125, 3144-45, 3194, 3196, 3316-17, 3335, 3388, 3407, 3424-25, 3457-
58, 4550, 4676, 4696, 4740, 4757, 4780, 4801, 4932
Rationale for different treatment of .- 1093, 2613,3145,3316-17, 4676,4780







XXIX

FUNDING-Continued
Pages in
Multiemployer plans-Continued Legislative History
Withdrawals from---------- -------------- 132-33,525, 627
See also Variances-multiemployer plan.
Need for regulation ------------------------------------- 591,
593-94, 605, 1071, 1082-83, 1124-25, 1221, 1599-1601, 1610, 1625,
1635-36, 1668, 1720, 1829, 1871, 2352, 2354, 2361, 2592-93, 2601-02,
2661, 3123-24, 3132-33, 3194, 3296-97, 3370-71, 3373, 3380-81, 3395-
96, 3406, 3413, 3457,3497, 4660-61, 4717, 4801, 4811
Plan administrator:
Reports (See Funding status reports.)
Required action when funding is below requirements ------------ 755-57,
2316-18, 4005-06
Plan amendments, effect of--- ---- --------------------- 61-62,
122-23, 515, 626, 884-87, 1073, 1090, 1128, 1222, 1309, 1311, 1612,
1626, 1650, 1721, 2425-27, 2594, 2613, 2663, 2666-67, 2956-58, 3125,
3144, 3196, 3198-99, 3316-17, 3337, 3381, 3407, 3424-25, 3638-41,
4090-92, 4676, 4877
See also:
Retroactive plan amendments.
Variances-waiver-amendments to plan.
Plan year, changes in ------------------------------ 859,
1137-38, 1314, 2430-31, 2671, 2684-85, 2961, 3203, 3216, 3643, 4002-
03, 4095, 4552-53, 4878, 4923
See also Collective-bargaining plans-plan year.
Plans covered:
Exclusions ---------------------- --------- 58-59,
112-13, 242, 504-06, 518, 547-48, 604, 616, 624, 752-53, 863, 1074,
1135, 1317-18, 2312-13, 2356, 2371, 2389-90, 2437-38, 2612-13, 2663,
2678-80, 2967-68, 3144, 3195, 3210-11, 3302, 3316, 3335, 3344-45,
3424, 3647-48, 399698, 4101-02, 4550, 4558-59, 4676, 4780, 4875
General rule --------------- ---------------- 58,
111-12, 121-22, 239, 504, 514, 604, 624, 751-52, 853, 1307, 2332, 2371,
2424, 2662-63, 2954-55, 3195, 3302, 3381, 3637, 3995-96, 4088-89,
4549-50, 4558-59, 4676, 4780, 4875, 4921
Voluntary coverage---- ..------.- 2403-04, 2933, 4067, 4528, 4558, 4908
Previous law ------------------------ 590-91,
595, 1071, 1082-83, 1123-24, 1126, 1604-05, 1622, 1735, 1738, 2595,
I2604, 2627, 2698-99, 2726-27, 3122-23, 3132, 3143-44, 3193, 3220-21,
3296-97, 3316, 3334, 3336-37, 3377-78, 3380-81, 3388, 3413, 3424,
3447-48, 4559-60, 4801
Purpose of funding requirements --------------------- 588.
607, 1090, 1127, 1601, 1611, 1620, 1649-50, 1692, 1720-21, 1730, 2349,
2361, 2387, 2591, 2597, 2612, 3122, 3128, 3143, 3316, 3373, 3375, 3378.
3424, 3465, 3493, 3583, 4550, 4657, 4663, 4668, 4676, 4700-01, 4734,
4740, 4780, 4790, 4794, 4823, 4825
Regulations/rules, general authority:
Secretary of Labor --------------------------- 108,
500, 773-74, 1856, 2339, 2374, 3304, 3741-42, 4050-51, 4901
Secretary of the Treasury ----- ----------- ----- 863,3648
Retroactive plan amendments---- --------------------- 1663,
2432-34, 2664-67, 2686-87, 2962-64, 3197, 3199, 3218, 3335, 3337,
3343, 3443, 4096-98, 4553-54, 4740, 4879, 4924
Revenue effect --- 1105-06, 1149, 2628, 2631, 2700, 3160, 3162-63, 3222, 4440-41
Secretary of Labor:
Exemptions -------------------------------- 126, 518
Variances------ ---------------- ----------- 129-133,
588, 608, 626-27, 764-66, 860-61, 1332, 1603, 1626-27, 1650, 2336,
2354-55, 2371, 2594, 2614-15, 2662, 2670-71, 2966-67, 2984-86, 3125,
3146, 3195-96, 3203-04, 3408, 3426, 3457-58, 3644-45, 4100-01, 4549-
51, 4554-55, 4677, 4880
Secretary of the Treasury:
Exemptions -----------------------------------242








XXX

FUNDING-Continued
Pages in
Secretary of the Treasury--Continued Legislative History
Variances ---------------------------------------- 860,
1074, 1093, 1125-26, 1129-31, 1314-15, 1613, 2435-36, 2594, 2614,
2662-63, 2669-70, 2965-66, 3125, 3145-46, 3195-96, 3201-04, 3302,
3408, 3643-44, 4099-4100, 4549-50, 4554, 4677, 4809, 4879-80,
4924-25
Social Security and related benefits, changes in (See Experience gains/losses-
treatment of certain changes as.)
Tax deductibility of contributions:
Alternate minimum funding standard -- ---------- 4556-57, 4930-31
Carryover ------------------------------------------------- 866-67,
1126, 1321-22, 2343-45, 2371, 2672, 2973-75, 3204, 3661-62, 4107-09,
4929
General rule ------ ---------------------- 382-83,
865-66, 1320-21, 1721, 1872, 2441-43, 2664, 2687-88, 2971-73, 3197,
3220, 3650-51, 4105-07, 4929, 4932
Maximum deduction ------ ------------------- 1126.
2443, 2688-89, 2973, 3220-21, 3335, 4107, 4559-60, 4928-29
Multiple trusts/plans -- ---------------------- 383-85,
626, 866-67, 1321, 1663, 2443-45, 2689, 2974-75, 3214, 3651-52, 4108-
09, 4930
Time when contributions deemed made- 383, 2443, 2973, 4107, 4557, 4879, 4930
See also Collective-bargaining plans-tax deduction limitations.
Tax disqualification, effect of---------------------- 2663, 3195, 3335, 4550
Valuation of assets:
Actuarial assumptions/methods-------- --------- 2429-30,
2615, 2681-85. 2959-60, 3147, 3216-17, 3309, 3342, 3427, 4002, 4093-
94, 4878, 4923
Bonds and other debt paper -------------------------2429.
2615, 2685, 2959-60, 3147, 3217, 3345, 3427, 4002, 4093-94, 4878, 4923
See also REPORTING AND DISCLOSURE-Actuarial report, filing require-
ments.
Variances:
Alternate funding methods ------- -------------------- 327,
764-65, 2329-31, 2671, 2984-86, 3195, 3339, 4041-42, 4555, 4676-77
Disclosure ----- --------------- 166-67, 301, 562, 632, 1434, 3764-65
Multiemployer plans------------------------131-32,
524, 608, 627, 860-61. 1074, 1093, 1130-31, 1314-15. 1613, 1626, 1650,
2436, 2454-55, 2594, 2614-15, 2663, 2671-72, 2966-67, 2984-86, 3125.
3146, 3195, 3203, 3408, 3426, 3644-45, 4100-01, 4118-20, 4554-55,
4879-80, 4924-25
Waiver:
Amendments to plan ------- ------------------- 131
524, 627, 1131, 1139, 1315-16, 1333. 2371, 2436-37, 2670, 2967, 3202,
3302, 3645, 3662, 4101, 4555-56, 4880, 4925
General rule----- ---------------------------- 129-30,
243-44, 522-23, 588, 626-27, 860, 1074, 1093. 1125-26, 1129-30, 1314-
15, 1332-33, 1603, 1613, 1626-27, 1721-22, 2371, 2435-36, 2594, 2614,
2662-63. 2669-71, 2965-66, 3125, 3145-46, 3195-96, 3201-04, 3302,
3408, 3426, 3458, 3643, 366061, 4099-4100, 4549-51, 4654-55, 4677,
4740, 4780, 4802, 4809, 4813, 4879-80, 4924-25
Reasonable conditions to ----------- 1130, 2670, 2686, 3202, 3219
















FIDUCIARY RESPONSIBILITY
Pages in
Bonding (See MIsCELLANEous-Bonding.) Legislative History
Delegation of authority by fiduciary------------------------------- 178,
563-64, 1054-55, 1449-50, 2289, 3948-49, 4561, 4564-65, 4568-69,
4743, 4883
Effective dates---------------------------------------------- -- 51,
189, 321, 377, 586, 622, 634, 743, 980, 1033, 1174, 1454, 1472, 1729,
2301, 2369, 3301, 3380, 3784, 3970, 4592-93, 4697, 4762-63, 4885-86,
4895-97
See also Prohibited transaction rules-effective dates/transition rules.
Employee stock ownership plan (See Individual Account Plan-special
rules.)
Employer contributions, return of ---------- ------------- 41,
725, 1441-42, 1466, 2284, 3949-50, 4570, 4883-84
Employer securities and real property:
Divestment schedule------------------------------ 619,
1076, 1101, 1446-48, 1727, 1848-50, 1857, 3775, 4585-87, 4593, 4743,
4759, 4763, 4887-88
Exemptions -------------------------------------- 174-75,
310-11, 570-71, 619, 1076, 1101, 1168, 1446, 1615, 1727, 1848-50,
1856-57, 1879, 3300, 3774-75, 4583-85, 4884, 4887
General rule----------------------------- --------- 173-74,
309-11, 569-70, 619, 727-30, 967, 1076, 1100-01, 1168, 1445-47, 1615,
1665, 1727, 1848-50, 1856-57, 1872, 3774-75, 4576, 4585, 4677-78,
4743, 4759, 4780-81, 4788, 4886-88
Indicia of ownership outside the United States (Sec Standards for fi-
duciary conduct-indicia of ownership outside the United States.)
Individual account plans, special rule-- 2285-86, 2358, 3951-52, 4572-73, 4884-85
See also Prohibited transaction rules-exemptions from-loans to em-
ployee stock ownership plans.
Liability insurance (See Liability of fiduciary--exculpatory/insurance
provisions.)
Liability of fiduciary:
Breaches before and after holding position .--------------- 45-46,
178, 314-15, 574, 733, 955, 1174, 1450, 2289-90, 3780, 3955-56, 4587,
4893
Co-fiduciary ----------------------------------- 45,
177, 313, 573, 619-20, 632-33, 732, 953-54, 1165, 1173, 1449, 3779,
3786-87, 4566-67, 4885
Delegated responsibility----------------- 3949, 4561, 4568-69, 4885-86
Exculpatory/insurance provisions ------ ----------------45,
177-78, 314, 573-74, 620, 633, 733, 954-55, 1449-50, 2289, 3780, 3955,
4587-88, 4743, 4771, 4893
General rule ------- ---------------------------- 44,
177, 313, 572-73, 619, 632, 953, 731, 1076, 1100, 1163-65, 1173-74,
1449, 1604, 1614-15, 1727, 2288, 3300, 3309, 3779, 3953-54, 4562,
4573-74, 4587, 4893
Trustees, special rule .----..--.--- 2289, 3954-55, 4562, 4567-88, 4885-86
See also:
ENFORCEMENT-Fiduciary standards-civil enforcement.
ENFORCEMENT-Statute of limitations.
Liability of party in interest---------------------------- 369,
955-56, 1100, 1163-65, 1173, 1450, 1614-15, 1727, 3780, 4562, 4587
See also ENFORCEMENT--Fiduciary standards-civil enforcement.
II (XXXI)






XXXII

FIDUCIARY RESPONSIBILITY-Continued
Pages in
Legislative History
Need for regulation------------------------------------------ 597,
615, 1071-72, 1086, 1099, 1162-63, 2351, 2359, 3308, 3311, 3370, 3377.
3387, 3395, 3516-17, 3581-82, 4657, 4660-61, 4743, 4795-96, 4803,
4811-12
Plan structure ----------- -------- -----------------41,
169-70, 565-66, 616, 632, 724, 1441, 2283-84, 2368, 3300, 3772. 3947.
4561, 4564-65, 4743, 4882-83
See also:
Standards for fiduciary conduct-adherence to plan documents.
Trust requirement.
Plans covered ------------------------------------ 14-15
111-13, 152-53, 286-87, 504-06, 547-48, 601, 604-05, 616, 624,
945-46, 972, 1100, 1162, 1419, 1451, 1454-55, 1465, 2259, 2356, 2365,
3298, 3308, 3378, 3385, 3749, 3773, 3781. 3792, 3918-19, 4563. 4574.
4743, 4788, 4881-82, 4984
Previous law -------------------- --------- ------ 591
597, 1071-72, 1085-86, 1100, 1162-63. 1622, 2351-52, 2354, 2359, 2603,
3134, 3295-96, 3305, 3414, 4573
Prohibition from holding plan office (See MISCELLANEOUS-prohibition from hold-
ing plan office.)
Prohibited transaction rules:
Averse interest dealing ------------------------42-43
171. 308, 567, 726, 949, 1076, 1099-1100, 1172, 1456, 1857. 1872. 2286,
2368, 3300, 3379, 3776, 3950-51. 4561-62, 4576, 4743, 4886
Effective dates/transition rules -------------------------- 180
321, 377, 576, 634, 743, 980-82, 1101, 1166, 1169-70, 1454, 1472-74.
1729, 2301-02, 3784, 3800-01, 3970, 4592-93, 4759, 4762-63, 4897.
4985-86
See also Employer securities and real property--divestment sched-
ule.
Exemptions from:
Administrative authority to grant--------- --------------- 172
309, 568. 617-19. 1443, 1728. 1857. 3776-77, 3788. 4562. 4576-78.
4743-44, 4759, 4765-66, 4796, 4890, 4978-79
Ancillary bank services --- ------3310, 4581-82, 4759, 4891-92, 4980
Bank deposits ----------------------- 4580-81,4980,4991
Conversion of securities -- ---------------------- 968-69
1169, 1444, 1462, 1727, 4582, 4892, 4980
Dealing with trust income or assets by party in interest-------- 1445
Distribution of plan assets ----- -----------4583, 4892, 4981
Lease arrangements between plans and employers -- --------1463
1665, 1727, 3790-91
Listed securities -- ------- 175, 309, 311-12, 561-62. 969-70, 1447-48
Loans guaranteed by party in interest ----- 968, 1166, 1728, 457-80
Loans to employee stock ownership plan---------- 4579-80, 4891, 4979
Loans to participants and beneficiaries ----------------------- 176
312, 572, 630, 967-68, 1166, 1443-44, 1461-62, 1728, 3777, 3789, 4578-
79, 4890, 4979
Multiple plan services--------------------------- 176-77,
309. 312, 572, 617-18, 632, 968, 1448, 1463-64, 1729, 3310, 3778, 3791.
4576-77, 4579, 4592-93, 4744, 4759, 4890, 4979
Pooled investment funds ---- ----------. 4583, 4892, 4980-81
Providing of goods to party in interest -- ---------968, 1167, 1728
Purchase of insurance from employer or subsidiary --------- 1169
4581, 4891, 4980
Receipt of compensation or entitled benefit--------------- 43-44
172-73, 309-10, 568-69, 632, 730-31, 968-69, 971, 1167, 1444-45,
1462-64, 1728-29, 2287, 3310, 3778, 3789-91, 3952-53, 4579, 4892.
4981
Owner-employee, individual retirement accounts, subject to ----- 966-68
1164, 1443-44, 3777, 3787, 3789, 453, 4607, 4888, 4892-93, 4970
4979, 4981
Scc also ENFORC!EMENT-Individual retirement accounts, penal-
ties involving-prohibited transactions.









XXXIII

FIDUCIARY RESPONSIBILITY-Continued
Pages in
Legislative History
Prohibited transaction rules-Continued
Party in interest dealing:
Furnishing or acquisition of goods or services----------------- 42-43
171, 308-09, 568, 727, 966, 1167, 1442, 1460, 2287, 3776-77, 3950-51,
4575,4788,4796,4886,4978
Generally -------------------- 3300,3519, 4561-62, 4743, 4759, 4765-66
Loans or credit -------------------------------------------171,
308, 567, 966, 1166, 1442, 1460, 3776, 3787, 4575, 4788, 4796, 4886,
4978
Receipt of consideration for personal account-------------- ---42-43,
171, 180, 308, 557, 566, 600, 632-33, 966-67, 1167, 1443, 1461, 1728,
2286, 2368, 3300, 3379, 3776, 3788, 3950-51, 4562, 4576, 4743, 4886,
4978
Sale, exchange or lease of property------------------------- 42-43,
171, 308, 567, 966-67, 1148, 1165-66, 1450, 1460-61, 1728, 2286-87,
2368, 3379, 3775-76, 3780-81, 3787, 3789, 3950-51, 4574-75, 4788,
4796, 4886-87, 4978
Self-dealing ------- ------------------------------ 42,
171, 308, 567, 966, 1076, 1167, 1443, 1461, 1728, 2286, 2368, 3300,
3370, 3473, 3776, 3787, 3950, 4561-62,4743,4886, 4978
Transfer or use of trust income or assets----- ----------- 171-72,
308-309, 568, 966, 1167, 1442, 1460, 3776, 3787, 4575-76, 4788, 4796,
4886, 4978
Variances:
See:
Employer securities and real property-divestment
schedule.
Prohibited transaction rules-exemptions from.
Removal of fiduciary:
See:
ENFORCEMENT-Fiduciary standards-civil enforcement.
Liability of fiduciary-general rule.
Regulations/rules, general authority:
Secretary of Labor ------------------------------------------- 108,
172, 309, 318, 500, 568, 957, 1443, 1558, 1726-29, 1856, 2291, 2295,
2301, 2339, 2374, 3304, 3741-42, 3776, 3785, 3788, 3962-63, 3970,
4050-51, 4572-73, 4592, 4759, 4842,4887-89,4901
Secretary of the Treasury ---------------- ------ 372,
979, 1727-29, 1856, 1858, 3978, 4759
Standards for fiduciary conduct:
Adherence to plan documents ---------------------- 42,
170, 176, 307-08, 312-13, 566, 572, 949, 1172, 1441-42, 1448-49, 1456,
1464, 2286, 2360, 3308-09, 3773, 3778-79, 3791, 3950, 4884
Diversification requirement -----------------------42,
620, 633, 1849, 1872, 2285, 2368, 3300, 3309-10, 3379, 3474, 3495-96,
3950, 4561, 4571-72, 4677-78, 4780-81, 4788, 4884
Exclusive benefit requirement ------------------------ 41-42,
170, 307, 313-14, 616, 632, 946-47, 1076, 1099-1100, 1162, 1455, 1726,
2284-85, 3300, 3370, 3378-79, 3474, 3495-96, 3772-73, 3948, 3950,
4561-62, 4569-70, 4759, 4803, 4883-84
Holding other positions---------------------------------- 43-44,
173, 309-10, 569, 971, 1169, 1464, 1729, 2284, 2288, 3791-92, 3952-53,
4579, 4892, 4981
Indicia of ownership outside the United States- ------------------- 171,
568, 617, 967, 1067-68, 1727, 1857, 4573, 4796, 4884
Prudent man rule--------------------------- ---------- 42,
170, 307-08, 566, 617, 632, 949, 966, 1169, 1172-73, 1441, 1456, 1604,
1726-27, 2285, 2360, 2368, 3300, 3307, 3309-10, 3370, 3378-79, 3773,
3950, 4561-62, 4568-71, 4574, 4677-78, 4743, 4759, 4780-81, 4788,
4813, 4884
Purposes of -- ------------------------ ---- 588,
613, 615-16, 632, 2358, 2360, 3297, 3375, 3399, 3464, 3493, 3498, 3582,
3590, 4660-61, 4668, 4734, 4752, 4780-81, 4795, 4800, 4825





25-o028 0 76- vol. 1 3








XXXIV

FIDUCIARY RESPONSIBILITY-Continued
Pages in
Legislative History
Termination of Plan (See TERMINATION INSURANCE-Allocation of assets-
rules and regulations.)
Trust requirement------------------------------------ 41,
307, 566, 946, 1441, 1455, 2288, 3772-73, 3954, 4561, 4565-66, 4743,
4883
See also Plan structure.














TERMINATION INSURANCE
Pages in
Abuses, safeguards against: Legislative History
General ------------------- ---- ------ 1724-26, 3529-30
Guarantee maximums -- ----- ----------------- 1150, 1724
Liability provisions-- --------------------- 690,
701-02, 720, 1094, 1148, 1155-57, 1628, 1650, 1724-26, 2362-63,
2372-73, 3349, 3382, 3388-90, 3479, 3530, 4741
Time limitations on benefits covered- ---------- 1148, 1150-51, 1724
See also:
Allocation of assets.
Recapture, rationale for.
Accumulated funding deficiency, allocation of --- 913-14, 1152, 1376, 1726, 3705
See also:
Benefits guaranteed-maximum limitation-ownership restrictions.
DEFINITIONS--Accumulated funding deficiency.
DEFINITIONS-Pro rata share.
Administering agency:
Administrator---------- 81, 137, 532, 629, 758, 1628, 1723, 2320, 2371
Establishment of ----- 81, 137, 531, 587-629, 758, 1628, 1723, 2320, 2371-72
See also Corporation.
Advisory board, advisory committee (See Corporation-advisory Committee.)
Allocation of assets:
Partial termination ---------------------- 127-28,
244-45, 520, 2292-93, 2653, 3185, 3309, 3957-63, 4744
Priorities for allocation ---------------------- 44,
126-28, 244-45, 248-49, 313-14, 509-10, 608, 626, 734-37, 927-29,
954, 1152-53, 1390-92, 1411-12, 1614, 2291-92, 2294, 2369-73, 3300,
3349, 3720-21, 3741, 3957-58, 3961, 4040, 4579-80, 4592, 4651, 4744,
5032-34
Regulations/rules ---------------------------------245,
566-67, 1442, 2292, 2296-97, 2373, 3962-63, 4041-42, 4570, 4744,
4884
Residual assets------- ------- ------------------ 170,
516, 532, 566-67, 738, 973, 1153, 1392, 1441-42, 1466, 2296-97, 2359-
60, 2369, 3300, 3308, 3721, 3773, 3793, 3960-61, 5034
Alternate approaches to termination insurance ----- 596, 2363
Arguments against:
Adequacy of other provisions ------- ----------- 2387-88, 3389-91
Contingent liability insurance ---- ---------- 3349-50, 3392-93, 3531
General----- --------- 1863, 1876, 3398-99, 3402-03, 3463-64, 3476-77
Government operation of the insurance program_ 3350, 3383-85, 3390, 4691
Immediate liquidation of plan assets -------- ------ -3350, 3527-28
Insurance with employer liability ------------ -- --- 2387-88,
3349, 3389, 3398-90, 3586, 4705
Bankruptcy Act ----------------------- 143,
538, 762, 823-24, 1160, 1386, 2326, 3525-26, 3716, 4038, 4640, 5030
Benefits guaranteed:
General rule ---------------- ----------- 137,
267, 532, 588, 758, 908-09, 1149, 1473, 1725-26, 2372, 3347-48, 3702,
4024-25, 4635, 4637, 4757-58,. 4776, 5023
Maximum limitation:
Adjustments to------------------------- 1150, 4637, 4741, 5024
Benefit increases under plan amendments-- ------------- 83,
139, 268-69, 533-34, 629, 759, 909-11, 1373, 1614, 2322, 2372, 3348,
3703, 4027, 4635-36, 4678, 4741, 4781, 5023, 5025
(xxxv)







'11 1 1 1







XXXVI

TERMINATION INSURANCE--Continued
Benefits guaranteed-Continued Pages in
Maximum limitation-Continued Legislative History
General rule-------------------------------------- -- 82,
137-38, 267-68, 523-33, 629, 911-12, 1094, 1148-50, 1222, 2372, 3348,
3529, 3703-04, 4025-26, 4635, 4741, 4752, 4157-58, 4181, 4802-03,
4808, 4813, 5023-25
Multiple plan situations ---- 912-13, 1150, 1375, 3704, 4028, 4636-37
New plans------------ -------------------------- 82--83,
138-39, 268, 533, 629, 759, 909, 1150-51, 1373, 1614, 1628, 1723,
2321-22, 2372, 3348, 3529, 3702-03, 4026-28, 4636, 4758, 5023
Rationale for------------------------------- 1094, 1149-50, 1628
Substantial owner restrictions---------------------- ------- 83,
139, 269, 534, 629, 759, 913, 1151-52, 1375-76, 2322, 2372, 3348,
3705, 4027-29, 4636-37, 5024-25
Survivor benefits----------------------- 82, 138, 533, 759, 2321, 4026
See also Accumulated funding deficiency, allocation of.
Optional guarantee of other----------------------------------- 1379,
3347-48, 3708, 4025, 4633, 4635, 4678, 5026
Tax disqualifications-------------- ---------------------- 914-15,
1152, 1376-77, 3348, 3705-07, 4029-31, 4634, 4636, 5025-26
Board of directors (See Corporation-board of directors.)
Congress:
Premium rate revisions, approval of---------------------------- 84-85,
140-41, 535-36, 630, 760-61, 900, 902-05, 1095, 1366-69, 1628-29,
1725, 2324, 2372, 3347, 3382, 3694-99, 4021-22, 4632, 4757-58,
5019-20
Report of the Corporation-------------------- -- 3348, 4037-38, 5021
Report of the Fund to---------- ---- 145, 540, 899, 1364, 2328, 3693
Contingent liability insurance:
General -------------------------------- 942,
1094, 1157, 1377-78, 1614, 1629, 1650, 1724, 3346, 3529-31, 3707,
4014, 4025, 4637-38, 4678, 4696, 4741-42, 4757, 4781, 5026
Other insurance ------------------------ 1379, 3708, 5026
Premiums -------------------------------------- 901-02,
1094, 1157, 1378, 1614, 1629, 1724, 3346, 3707, 4020-21, 4633, 4637-
38, 5026
Remaining in business--------- 932, 1157, 1378-79, 1724, 3530, 3708, 4637
See also Effective dates-contingent liability insurance.
Corporation:
Administrator -------------------------- -- 3303, 3346, 3689
Advisory committee----------- 3524, 4630-31, 4650, 4696, 4741, 5012-13
Board of directors----- ---------------- ----------- 263-65,
897, 1094, 1148, 1360, 1362, 1628, 1723, 3303, 3365-66, 3382, 3390,
3524, 3527, 3530-31, 3533, 3539, 3639-41, 4010, 4630, 4678, 4712,
4741, 4757-58, 4 81, 4819, 5011-12
Borrowing authority ------ ----- ------------- 272,
905-06, 1154-55, 1369-70, 1725, 3303, 3699-3700, 4015-16, 4631,
4678, 4741, 4781, 4808, 5017
Bylaws ------ ------ 265-66, 897-98, 1148, 1362, 3690, 3692, 4013, 5012
Enforcement by (See ENFORCEMENT-Enforcement by-insurance corpora-
tion.)
Establishment of ---------------- ---------------------- 263,
895, 1094, 1148, 1360, 1614, 1628, 1723, 3303, 3346, 3371, 3382,
3464, 3495, 3524, 3689, 4010, 4630, 4741, 4757-58, 4776, 4781, 4825,
5011
Liability of (See Liability of insurance program.)
Portability assistance-------------------------- --887-88,
1352, 3681-82, 4631, 5021
Powers ----------------------------- 269,
896-97, 1360-62, 3303, 3346, 3690-91, 4011-13, 4872, 5011-14
Purpose ------ ----------------------4011,5011
Relations with other government agencies-------------- 1148, 5014
Reports:
To Congress----------------------------------- 3348,4087-8,5021
To Secretary of Labor--..-------......------.....--------. 4087-38








XXXVII

TERMINATION INSURANCE-Continued
Corporation-Continued Pages in
Reports-Continued Legislative History
To trustee----------------------- 831,1161,1394-95,3724, 5035
Reports from plan administrators----------- 938-39, 1404-05,3734, 5039
Tax exemption ------- ------------ 898, 1363,3792, 4631,5012
Temporary authority for initial period------------ 4630,4649-50, 5015-16
Coverage:

Benefits guaranteed.
Contingent liability insurance.
Plans covered.
District of Columbia Nonprofit Corporation Act -------- 263, 895, 4011, 5011
Effective dates:
Benefits, guarantee of------------------------------------914-15,
1094-95, 1151, 1161, 1614, 1629, 1724, 3349, 3382-83, 4041, 4647-
48, 4678-79, 5041-42
Contingent liability insurance --- ------------ 1157,4638, 4764, 5026
General insurance provisions-------------------------- 189,
577, 622, 634, 944, 1094, 1161, 1411, 1614, 2301, 3740, 4041, 4648,
4742, 4764, 4766, 4781, 5041
Liability of employer----------------- 944, 1411,3740-41,4648,4697
Premium collection------------------------- 1095,
1161, 1629, 1724, 3349, 3382-83, 4041, 4647, 4767, 5020
Premium revisions------- -- ---------------- 140-41,
630, 760-61, 900-01, 1365, 2324, 3694, 4022, 4650, 5018
Privilege tax -- --------------------------- 944, 1411,3740
Termination procedures -------------------- 944,1411,3740-41,4647-49
Fund (s), guaranty:
Appropriations -------- -- ------------------ 899,1364,3693-94
Establishment --- ---- ---------------------- 86,
144, 266, 539, 630, 763, 898-99, 1148, 1154, 1363-64, 2327-28, 2375,
3303, 3346, 3382, 3529, 3534, 3693, 4014, 4633, 5016
Investment restrictions ----------------------------- 87,
145, 267, 540, 764, 1155, 2328, 3303, 4014-15, 4631, 5017
Operations -------------------------------------- 86,
144, 266, 539, 630, 763, 899, 1154, 1363-64, 2328, 4014, 4633, 5016-17
Report to Congress------------ 145, 540, 899, 1364,2328,3693
Trustee (s) ---- ------ ----------- 144,539, 899, 1364,2328,3793
See also Premiums.
Insurance concept-- ----- ----------------------- 1603,1636
Internal Revenue Code, amendments to ------ --------------- 247,
268, 906-07, 940-44, 1148-49, 1370-71, 1406-11, 3700, 3735-40,
5040-41
Liability of corporation (See Liability of insurance program.)
Liability of employer:
Limits on ------- ------------------------------ 538,
612, 630, 762, 1155, 1158, 1614, 1629, 1724, 2326, 2363, 3525-26, 3585,
3725-26, 4038, 4643, 4678, 4741-42, 4757-58, 4781, 4808, 4833, 5036
Multiemployer plans treated separately:
General rule ------ 947-48,1158-59,1404,3349,3733-34, 4647, 5038
Allocation of liability -- --------------------- 612-13
Division of plans------------ --------------- 1725,3731-32, 5038
Nonmultiemployer and multiemployer plans, general rule---------- 85-86,
142-43, 532, 600, 630, 762, 932-33, 1094, 1155, 1396, 1614, 1724-25,
2326, 2373, 3349, 3382, 3525-26, 3529, 4038-39, 4642-43
Nonmultiemployer plans treated separately:
General rule ----- ----------------------- 3725, 5036
Partial terminations ---- --------- 1399-1400, 3525-26, 3729, 5037
Remaining in business --- ----------- 932, 934-35,1399,3728
Rationale for ------------------------------ 610,
612, 1094, 1155-57, 1628, 1649, 1873, 2363
Recovery and disposition of ----- -------------- 86,
143-44, 538-39, 612, 630, 762, 939, 1156-57, 1397-98, 1405-06, 1725-
26, 2326-27, 2363, 2373, 3526, 3726-27, 3735, 4039-40, 4643-45,
5039-40







XXXVIII

TERMINATION INSURANCE-Continued
Pages in
Liability of employer-Continued Legislative History
Substantial employer, withdrawal of------- ----- ------ 935-37,
1158, 1400-04, 1629, 1724-25, 3729-33, 4643, 4646, 4741, 5037-38
Successor liability------------------------------- -------------- 612,
630, 933-35, 1156, 1398, 1724, 1726, 2326, 2363, 2373, 3727-28, 5036
See also Contingent liability insurance.
Liability of insurance program -------------------------------- 81-82,
85, 137-42, 267, 532, 536-37, 588, 629-30, 7_62, 931-32, 1395, 2320-21,
2325, 2361, 2372-73, 3303, 3346, 3348-49, 3382, 4643, 4678-79, 4704-
05, 5036
Maximum limitation (See Benefits guaranteed-maximum limitation.)
Mergers, consolidations and transfers of assets (See Reportable events-
mergers or consolidations of assets.)
Multiemployer fund, multiemployer trust fund (See Fund (s), guaranty.)
Need for insurance program--------- ---- -- ------------ 593,
596, 1093-94, 1146-48, 1609-10, 1635-36, 1639, 1665-66, 1668, 1723,
1830-31, 1863, 1865-71, 2387, 2391, 2602, 2619, 3133, 3150, 3296,
3371, 3373, 3381, 3390, 3394, 3400, 3414, 3431, 3490-91, 3498, 3530,
3590, 4699, 4707, 4811
No-liability programs (See Contingent liability insurance.)
Nonmultiemployer plans, special rule-- ------------------ 895, 1360, 3689
Office of Pension and Welfare Plan Administration (See Administering agency.)
Partnership, special rule ------- ------------ 895, 1360, 3689, 5011
Pension Benefit Guaranty Corporation, Pension Benefit Insurance Corpora-
tion, Pension Guaranty Corporation (See Corporation.)
Pension Benefit Guaranty Fund, Pension Benefit Insurance Fund (See
Fund(s) guaranty.)
Plan administrator:
Notice to substantial employers ---------- 939, 1159, 1405, 3734, 5039
Report to Corporation_ --------------_ 938-39, 1404-05, 3734, 5039
Plan Termination Insurance Fund (See Fund.)
Plans covered:
Exclusions ------------------------------------------------ 112-13,
504-06, 907-08, 1094, 1106, 1149, 1371-72, 3700-02, 4634-35, 4781,
5022-23
General rule ---- -------- ---------------- 11-12,
137, 268, 504, 532, 629, 758, 906-07, 1148-49, 1364-65, 1370-71, 1649,
1726, 2320, 3347, 3375, 3382, 3529, 3700, 3702, 4022-23, 4634, 4758,
4781, 4802, 5021-22
Successor plans -------- 907, 1371, 3700, 3702-03, 4028, 4635, 5022-24
Voluntary coverage --------------------------------- 532,
600, 610-11, 629, 907-08, 1149, 1372, 2320, 2362, 2372, 3347, 3701,
4023-24, 4637, 5022
Premiums:
Assessments-administrative --------- 83, 139, 270, 534, 629, 760, 2322, 2372
See also Privilege tax.
As taxes -- ------------------- 1094, 1148, 1154-55, 1724, 4640
Collection --------------------------- 182, 578, 1148, 4611, 4631-32, 5020
Dual rates, rationale for ----- ---- 608-09, 611, 1095, 1157-58, 2362
Initial rates:
Liabilities base ------------------------ 3,
139-40, 270, 534, 611, 629, 760, 1603, 2322-24, 2362, 2372, 3303,
3347, 3382, 4016-21, 4631-32, 4758
Limits on- 83-84, 139-40, 270-71, 534-35, 2323-24, 2372, 3303, 3347, 3529
Per capita base----- -------------------------- 899-901,
1154-55, 1365-66, 1614, 1628-29, 1724, 3694-95, 4631-32, 4741, 4758,
4803, 4808, 4813, 4819, 5017-18
Subsequent rates--------------------------------------- 84
140-41, 271, 525-26, 535-36, 600, 630, 760-61, 902-05, 1095, 1148,
1158, 1366, 1614, 1628-29, 1725, 2324, 2372, 3303, 3347, 3382, 364-
95, 4021-22, 4632, 4741, 4758, 4808, 4819, 5018-19
See also Congress-premium rate revisions.
Tax status of --------------------- -------------- 1155








XXXIX

TERMINATION INSURANCE--Continued
Pages in
Premiums-Continued Legislative History
Waiver by Corporation-------------------- -- -- 5020-21
See also Contingent liability insurance-premiums.
Private Pension Plan Termination Insurance Program (See Administering
agency.)
Private termination insurance---------------------- 1603, 4638, 5026
Privilege tax------ ----------------- --- 941-42, 1408-11, 3737-40
See also:
Effective dates-privilege tax.
Premiums-assessments-administrative.
Purpose of insurance program ------ ----------- ------ 588,
1088, 1601, 1620, 1830, 1873, 2349, 2361, 2372, 3294, 3346, 3375, 3378,
382, 3397, 3474, 3495, 3499, 3529-30, 3533, 3583, 4011, 4734, 4794-95,
4803, 4819, 4823
Recapture of certain pre-termination distributions:
Authority ------------------------ 929-30, 1153, 1392-93, 3722, 5034-35
Death and disability distributions--- 930, 1153, 1394, 3723, 4645, 5034
General rule ---- 929-30, 943, 1153-54, 1393, 1725, 3722-23, 4645, 5034, 5041
Rationale for----------------------------- 1153-54
Waiver by Corporation-- ----- -------- -- 1394, 3723, 4645, 5035
Regulation/rules, general authority:
Corporation -------- ------------ 896, 1361, 3690, 4011-12, 5011
Secretary of Labor -------------- 1856, 2339, 2374, 3304, 4050-51
Secretary of the Treasury ------ ------------------------- 266
Reportable events:
Benefits:
Decrease --------- 925, 1160, 1389, 3348, 3719, 4031, 4640, 5031
Inability to pay-------------- 926, 1389, 3348, 3719, 4031, 4641, 5031
Disqualification of plan or trust--------------------------- 925,
1160, 138-89, 3348, 3717-18, 4031, 4640, 5031
Fiduciary standards violations ---------------------------- 1160
Funding standards, failure to meet ------------------------ 926,
1160, 1389, 3348, 3719, 4032, 4641, 5031
Lump-sum distributions------- 1389-90, 3348, 3719, 4032-33, 4641, 5031
Mergers or consolidations of assets-------------------- 4641, 5031
Participation, decrease in ----- 925-26, 1160, 1389, 3718, 4031, 4640, 5031
Termination under Internal Revenue Code----------------926,
1160, 1389, 3718, 4032, 4649, 5031
See also Termination by Corporation-occurrence of reportable events.
Restoration of terminated plans-------------------------- 4645-46, 5035
Secretary of Commerce, member of board of directors--- ---------- 897,
1094, 1148, 1362, 1628, 1649, 1723, 3539, 3691, 4630, 4741, 4757-58,
4781, 4819 5012
Secretary of Labor:
Administrator of insurance program ------------------ 81,
137, 532, 629, 758, 1628, 1723, 2320, 2371, 3303, 3346, 4757-58
Approval of terminations-------------------- 85, 141, 761-62, 3535
Chairman of board of directors ------- ---------------- 1362,
1723, 3303, 3527, 3534, 3539, 3681, 4010, 4630, 4741, 4757-58, 4781,
4819, 5012
Duty to confer on premium rates ------ 84-85, 151, 536, 630, 761, 2324, 2372
Establishment of premium rates ------------------ 83-84,
139, 534-35, 629-30, 760, 2322-24, 2372, 3529
Examination of corporation -------------------------4037
Member of board of directors---..----- ---------------264,
897, 1094, 1148, 1628, 1649, 1723, 3382, 3390, 4678, 4712, 4741, 4757-
58, 4781, 4819
Prescription of liquidation procedures._. 142, 537, 630, 2325-26, 2362, 2373
Trustee of Fund(s) ------------- 144, 539, 1646, 2328
Variances ----------------------------- -------- 759, 4041-42
See also Termination by corporation-occurrence of reportable events-
notification by Secretary of Labor.
Secretary of the Treasury:
Chairman of board of directors------------ .. 897, 1094, 1148, 1628, 1723







XL

TERMINATION INSURANCE-Continued
Pages in
Secretary of the Treasury-Continued Legislative History
Loans to corporation------------------------------------ 272
Member of board of directors-------- 264, 1362, 1649, 3539, 3691, 4630, 5012
Obligations of the Corporation- 763, 905-06, 1369-70, 3699-3700, 4015-16, 5017
Trustee of Fund (s) --------------------------------- 899, 1364, 3693
See also Termination by Corporation-occurrence of reportable
events-notification by .Secretary of the Treasury.
Single employer fund, single employer optional trust fund, single employer
primary trust fund (See Funds (s), guaranty.)
Substantial employer:
Notification of status --- ---- ------__- 939, 1159, 1405, 3734, 5039
Withdrawal notification--------------------- 1158, 3729, 4655, 5037
Substantial owner (See Benefits guaranteed-maximum limitation-sub-
stantial owner restrictions.)
Termination by Corporation:
Appropriate court ---- 924, 1159-60, 1387-88, 3717, 4639-40, 5015, 5028, 5030
Decree to terminate -------- 919-20, 1160, 1383, 3712-13,4639-40, 5028-29
Determination ----------------918-19,1159, 1381-82, 3711, 4034,4639,5028
Effect of other pending actions ----- -- 923, 1160, 1386-87,3716,4640,5030
Exclusive jurisdiction of court--------------- 923-24, 1387, 3716-17, 5030
Notice to plan -- ------------ 919,1159,1382,3713-14,4639-40,5028
Occurrence of reportable events:
Hearings ----------------------------------------- 3348,4033
Notification by plan administrator --- 924,1388,3717,4031,4640,5031
Notification by Secretary of Labor ---------------- 4033,5032
Notification by Secretary of the Treasury ------------ 926-27,
1160, 1390, 3719, 4033, 4641
Other procedures (non-judicial)---------------------------- 269,4034-37
Simplified procedure_-------------------- 4640,5028
See also:
Reportable events.
Restoration of plan.
Trustee.
Termination by plan administrator:
Amendments to plan---------------------- 918,1381,3710,5027
Approval by Secretary of Labor -- ---- -------------- 85, 141
General rule----------------------- 269, 536, 611, 630, 916, 1379,3708-09
Insufficiency of assets, procedures------------------------- 916-18,
1159, 1380-81, 3709-10, 4638, 5027
See also Termination by Corporation.
Notice of intent to terminate ----------------------------536,
600, 611, 630, 916, 1159, 1379, 2324-25, 2362, 2372, 3708-09, 4638,
5027
Sufficiency of assets, procedures--- 916, 1159,1379-80, 3709, 4638-39, 5027
See also:
Allocation of assets.
Trustee.
Trustee:
Appointment of:
General ----------------------------------- 4639-40, 4741
Notice to interested parties--------------- 922-23,1161, 1386,3715
Termination by Corporation 920, 1160, 1382-83, 3711-12, 4639-40,5028
Termination by plan administrator ---------------4639,5028
Corporation as-----------------------------------------4640, 5028
Powers and duties--- 920-23, 1160-61, 1383-86,3713-16,4640-41, 529-31
Report by Corporation to----------------- 91, 1161, 1394-95,3724,5035
Vested benefits coverage:
See:
Benefits guaranteed.
Liability of insurance program.
Voluntary employee contributions (See Allocation of assets--priorities for
allocation.)














ENFORCEMENT
Pages in
Legislative History
Actuaries, standards for (See MISCELLANEOUS-Actuaries-standards and
qualification for.)
Administrative interpretations (See Reliance on regulations and
interpretations.)
Administrative Procedure Act, applicability--------------------------- 4597
Attorney's fees and court costs---------------- ------------------ 35,
185, 305, 581, 771, 951, 1174, 2336, 2368, 3299, 4049, 4594, 4899
Attorney General:
See:
Enforcement by-Attorney General.
Representation of Secretary of Labor in litigation.
MISCELLANEOUs-Secretary of Labor-relations with other govern-
ment agencies.
Benefit claims procedure----------------------------- 152-54,
549-50, 576-77, 620-21, 633, 988-90, 1070, 1102, 1175, 1184-86, 1480-
82, 1488-89, 1615, 1632, 1729, 1775, 1836-37, 1858, 2278, 2391, 3379,
3813-15, 4595, 4745, 4753, 4769, 4814,4823, 4900
Bonding (See MISCELLANEOUS-Bonding.)
Class actions -------- ----------------------------------- 184,
304, 580-81, 770, 950, 1174, 1491, 1615, 2335, 2368, 3299, 3817, 4048
Cooperation with other Government agencies (See MISCELLANEOUS-Secre-
tary of Labor-relations with other Government agencies.)
Criminal penalties------------------------------------- 29,
179, 592, 622, 634, 766-67, 1085, 1497, 1600, 2331-32, 2341-42,
2349, 2373, 3294, 3299, 3579-80, 3823, 4044-45, 4054, 4593, 4597-98,
4657,4898
See also:
MIsCELLANEOus-Bonding.
MIscELLANEous-Prohibition from holding plan office.
Declaratory judgments relating to qualification --------------------- 983-88,
1078, 1181-85, 1475-80. 1615, 1631-32, 1729, 2506-09, 2595, 2690,
2694-97, 3036-40, 3126, 3151, 3226-30, 3802-07, 4170-73, 4598, 4624,
4956-58, 5002-03
Effect of other laws ------ --- ----- ----------- 50-51,
186-88, 318-20, 582-85, 621, 633, 1493-96, 2345-47, 2359, 2364, 2375,
3305, 3404, 3820-22, 4057-59, 4650, 4670-71, 4726, 4745-46, 4770-
71, 4789, 4904
Effective dates -------------------------------- 51,
57, 65, 189, 248-49, 262, 321, 360, 362, 377, 387, 586, 622, 634, 743,
757, 990, 1021, 1056, 1061, 1184, 1186, 1481, 1483, 1489, 2301, 2369,
2505, 2510, 2553, 2697, 2750, 3036, 3041, 3230, 3283, 3301, 3807, 3813,
3895, 3970, 4175, 4190, 4599, 4602, 4725, 4745-46, 4762-64, 4859,
4904,4955-56
Employee benefit plan as a separate legal entity -------------- 33-35,
769-70, 2334-35, 4047, 4596, 4889
Enforcement by:
Attorney general ------------------------------- 303-07,772,952-54
Fiduciary, plan administrator, or employer---- ------------- 33,
185-86, 319-20, 582, 769, 984-85, 1476-77, 1493, 2334, 3803, 3813,
3818, 4047, 4898
Insurance corporation ------------------------ 896,
1360, 4011, 4625, 4632, 4644-45, 5003, 5011, 5014, 5021, 5040
Participant or beneficiary--- ---------------- ------ 33,
35, 183-85, 303, 547-48, 579-81, 588, 613, 633, 769, 950-52, 985, 1076,
1100, 1163, 11i1-74, 1183, 1477-18, 1488-89, 1604, 1641-42, 1726-27,
1835-36, 2334, 2349, 2364, 2367-68, 3294, 3299, 3304, 3379, 3806,
3815-17, 4047, 4593-94, 4624-25, 4745, 4753, 4796-97, 4814, 4898
(XLI)








XLII

ENFORCEMENT-Continued
Pages in
Enforcement by-Continued Legislative History
Secretary of Labor--------------------- ------------. -------- 33,
35, 105-07, 181-83, 303, 498-99, 577-79, 592, 623, 633, 715-16, 769,
950-52, 949, 1074, 1100, 1163, 1171-74, 1469-70, 1604, 1630-31, 1837,
1843, 2274-75, 2334, 2349, 2364, 2367-68, 2373, 2391, 3294, 3299,
3304, 3379, 3815-16, 3937, 4047, 4524, 4594, 4745, 4855, 4898
Secretary of the Treasury/Internal Revenue Service-------------- 1076,
1101, 1219, 1336-37, 2351, 2619-20, 2682-83, 2691-97, 3151, 3214-15,
3223-30, 3484, 3666, 4592
See also Declaratory judgments relating to qualifications.
Fiduciary standards:
Civil enforcement------------------------------------------ 44,
182-83, 303, 578-79, 633, 731, 950-53, 979, 1076, 1101, 1164, 1172-75,
1490-91, 1727-28, 2288, 2290, 2367, 3299, 3815-17, 3953-54, 4587,
4657, 4745, 4898-4900
Excise tax ------------------ -------------- 369-72,
963-65, 1057-59, 1071-72, 1076, 1081, 1100-01, 1459, 1615, 1630, 1651,
1670, 1727-28, 1848, 3786-87, 4562, 4576, 4588-90, 4594-95, 4626,
4677-78, 4780-81, 4803,4978
See also:
Criminal penalties.
FIDUCIARY RESPONSIBILITY-Liability of fiduciary.
FIDUCIARY RESPONSIBILITY-Liability of party in interest.
MISCELLANEOUS-Bonding.
MISCELLANEOUS-Prohibition from holding plan office.
Funding requirement:
Excise tax ---------------------------- 863-65,
1074, 1092-93, 1101, 1118, 1125, 1134-35, 1138-39, 1318-20, 1613,
1627, 1642, 1722, 1727-28, 2439-41, 2447, 2616-17, 2619, 2662, 2667,
2676, 26 8, 2685-86, 2969-71, 2977, 3148, 3151, 3195, 3199, 3208-11,
3217-20, 3224, 3342, 3428, 3431, 3648-50, 4103-05, 4123-24, 4551,
4557, 4559, 4626, 4677, 4780, 4802, 4808, 4833, 4927-28, 4931-32
Other measures ---------------------------- 63-65,
181-82, 245-46, 523-24, 577-78, 590, 592, 633, 755-57, 2316-20, 3302,
4005-07, 4898
See also:
FUNDING--Tax deductibility of contributions.
INTERNAL REVENUE CODE-Limitations on benefits and contributions for
qualified plans.
General enforcement provisions ---------- ----- ---------- 588,
621, 766-73, 775, 1174-75, 1843, 2349, 3495, 3497, 4734, 4744-46, 4811
Individual retirement accounts, penalties involving:
Excess contributions, premature distributions, and excess accumula-
tions ---------------------------------- 258-61,
353-54, 1011-12, 1201-02, 1505, 1513-15, 1615, 2539, 2543-46, 2596,
2621-22, 2714, 2718-22, 2724-27, 3070, 3074-77, 3127, 3153, 3247,
3250-51, 3256-60, 3409, 3434-35, 3454, 3458-59, 3837-40, 4204, 4208-
11, 4602-03, 4606-09, 4971, 4973-74
Reporting and disclosure--- -------------------- 2446-47,
2497, 21 21, 2749-50, 3077, 3255, 3283-84, 4211, 4605, 4974-75
Prohibited transactions -- --------------------- 2537-38,
2723-25, 3068, 3255-57, 4202-04, 4597, 4607, 4978-79
Interference with rights protected under the Act ---------------- 585,
588, 600, 621-22, 344, 1496-97, 1640-41, 1775, 1811, 1835, 2341-42,
2364, 2374, 3304, 3822-23, 4053-54, 4597-98, 4745, 4753, 4796-97,
4832, 4902
Intervention, right of --------------------------------------------- 35,
305, 585, 771, 951-52, 985, 1183, 1476-78, 1492, 1496, 1729, 2368,
2694-95, 3226-27, 3299, 3803-04, 4049-50, 4594, 4624, 4626, 4745,
4899, 5003
Investigation and investigative authority-------------------- 32-33,
106-07, 302-03. 498, 562, 590, 602, 614, 619, 628, 768, 956-57, 1434-
35, 1456-58, 1856, 2333-34, 2350, 2367, 2373, 2603, 3134, 3299, 3379,
3765-66, 4045-46, 4595, 4768-69, 4900-01








XLIII

ENFORCEMENT-Continued
Pages in
Judicial review of: Legislative History
IRS and Tax Court decisions ----------------------- 1102,
1475, 1480, 1615, 1729, 2509, 2616-17, 2620, 2696-97, 3040, 3148,
3151, 3226-30, 3431-32, 3448-49, 3807
Secretary of Labor's decisions-- 633, 990, 1186, 1481-82, 1729, 1835, 2373
See also:
Benefit claims procedure.
Declaratory judgments relating to qualification.
Jurisdiction of courts -------------------- ---- -----34-35,
184-85, 188, 303-05, 319-20, 580-81, 584-85, 588, 621, 633, 770-71,
950-51, 1174, 1182, 1475, 1491-93, 2335-36, 2364, 2368, 3299, 3802,
3817-19, 3821-22, 4047-49, 4594, 4745, 4899, 5014-15
Keogh (H.R. 10) plans, penalties involving-- ----------- ---- 361,
377, 1616, 1618, 2521-25, 2623, 2704-06, 3052-56, 3154-55, 3236-39,
3434-35, 4186-90, 4601-02, 4962-64
Lump-sum distributions, penalties involving (See INTERNAL REVENUE
CODE-Lump-sum distributions.)
Money purchase plans, penalties involving ------- 1193-94, 1617, 2677, 3208
Notice of complaint to .Secretary of Labor --- -------------------35,
305, 581, 771, 2336-37, 4594, 4899
Participation and vesting standards -- ------57, 1322-24, 1641, 3652-54, 4898
Preemption of State law (See Effect of other laws.)
Previous law ------------------------------- 589-95,
1085, 1599, 2350-51, 2603, 2685, 2691, 2693, 2705, 3134, 3217, 3223,
3225-26, 3237, 3295-96, 3377, 3414
Prohibited transactions (See Fiduciary standards.)
Prohibition from holding plan office (See MISCELLANEOUS-Prohibition
from holding plan office.)
Regulation/rules, general authority:
Secretary of Labor __-------------------- 108,
318, 500, 743, 773-74, 1856, 2339, 2374, 3304, 3741-42, 4050-51, 4901
Secretary of the Treasury --------------------- 865, 1338, 3668
Reliance on regulations and interpretations -------------- ----37-38,
720-21, 1291, 2280, 3300, 3943-44, 4723, 4857
Reporting and disclosure requirements:
Generally ------------------------------31-32,
301-302, 715-16, 767-68, 848, 994, 1052-53, 1059, 1123, 1143, 1199,
1221, 1300-01, 1486, 1557-58, 1564-65, 1664, 2332-33, 2422-23,
2465, 2497-99, 2503, 2546, 2682, 2723, 2749, 2751, 2952-53, 3028-30,
3034, 3077, 3215, 3254, 3280, 3282-83, 3331, 3630, 3811-12, 3884,
3891, 3936-37, 4045, 4086-87, 4129, 4161-64, 4168, 4211, 4533, 4593,
4855, 4873, 4898, 4953, 4955
Recordkeeping ---- -------- ---------------- 31,
848, 1117, 1301, 2367, 2422, 2654, 2952-53, 3186, 3299, 3331, 3630,
4087, 4873
Registration-------------------------- 181-82,
577-78, 1059, 2343-45, 2374, 2496-98, 2747, 2927-28, 3280, 3307,
3891, 4056-57, 4161-64, 4952-53
See also Criminal penalties.
Representation of Secretary of Labor in litigation -------------- 305,
499, 601, 613, 1491, 1843, 4049, 4596-97, 4900
Separability of provisions-- -------- 776, 2341, 2374, 2916, 3304, 4053, 4902
Service of process ------------------------ --- 33,
146, 183-85, 621, 630, 770, 951-52, 1174, 1496, 2364, 3818, 4049-50,
4594, 4596
Solicitor of Labor, representation of the Secretary of Labor by (See Repre-
sentation of Secretary of Labor in litigation.)
Statute of limitations--------------------------- 46,
186, 314-15, 582, 733, 955, 986, 1174, 1184, 1378, 1493, 2290, 2508,
3039, 3805, 3819-20, 3955-56, 4173,4645, 4896,4957
Subpoena authority -- -------------------------32-33,
107, 768-69, 957, 989, 1186, 1457-58, 1481, 1836, 1856, 2334, 2367,
3765-66, 4046, 4596, 4900-01








XLIV

ENFORCEMENT-Continued
Pages in
Legislative History
Termination insurance (See Enforcement by-insurance corporation.)
Venue -------------------------------- -- 34,
183-84, 304, 580, 770, 924, 950, 987-88, 1174, 1480, 1491-93, 2335,
2509, 3040, 3807, 3817-18, 4048, 4174, 4594, 4899-4900
Vesting standards (See Participation and vesting standards.)










































0














INTERNAL REVENUE CODE
Pages in
Legislative History
Antidiscrimination rules ------- ------------------------------ 56,
377-78, 690-91, 833-34, 845, 847, 873-74, 1079, 1107, 1109-10, 1112,
1115, 1284-85, 1297-99, 1696-97, 1714-17, 2308, 2401, 2417-18,
2472-73, 2598, 2610-11, 2919-20, 2636-37, 2641, 2652-53, 2930-31,
2948-49, 3004, 3129, 3142, 3151, 3169-70, 3174, 3185-86, 3321-25,
3422-23, 3514, 3613-14, 3627, 3629, 3663, 3937, 4064-65, 4082-83,
4138-39, 4543-44, 4673, 4699, 4703-04, 4778, 4864, 4907, 4918-19,
4933, 4945-46
See also:
PARTICIPATION AND VESTING--Collective bargaining plans.
PARTICIPATION AND VESTING-Participation, basic standards-max-
imum age.
PARTICIPATION AND VESTING-Participation, special rules-air
pilots.
PARTICIPATION AND VESTING-Participation, special rules-non-
resident aliens.
PARTICIPATION AND VESTING---Vesting and benefit accrual, special
rules-comparability of plans.
Armed forces survivor annuity ---1570-78, 1879-80, 3600-01, 4653, 5000-01
Equalizing tax treatment, need for ----------------------------1072,
1077, 1081-82, 1095, 1188-89, 1198-99, 1643-44, 1647, 1704-05, 1859,
2591-93, 2600-01, 2620, 2699-2700, 2713-14, 3122-24, 3152, 3232-33,
3246, 3408, 3412, 3432, 3451, 4679, 4684-85, 4693, 4785-86, 4801,
4804, 4810, 4821, 4829
Foreign law, severance payments required_ -------------- 2481-82,
2751, 3010-11, 3284-85, 4146-47, 4949-50
Government negotiated plans, treatment of certain participants ----- 2582-83,
2753-55, 3113-14, 3286-88, 4248-50, 4653, 5000-01
Individual retirement account plans ----------------------- 249-63,
339-53, 360, 996-1021, 1077, 1095-96, 1203-13, 1223, 1498-1504,
1506-11, 1514, 1616, 1638, 1643-47, 1651-52, 1656-57, 1659, 1704-05,
1817-21, 1850-51, 1859-60, 1863-64, 2526-43, 2553, 2596, 2621-22,
2703-09, 3057-68, 3071-74, 3077-84, 3127. 3151-53, 3246-61, 3409,
3412, 3433-34, 3445, 3448, 3452-54, 3458-59, 3468. 3553-58, 3576-77,
3584, 3590-91, 3724-29, 3733-39, 4143-45, 4155-56, 4191-4208, 4230,
4566, 4583, 4602-10, 4663-64, 4679, 4688-90, 4702, 4704, 4708-09.
4714, 4746, 4752, 4763, 4769-70, 4777, 4782, 4784-86, 4797-98, 4809,
4813, 4883, 4965-73, 4978
See also:
ENFORCEMENT-Individual retirement accounts-penalties in-
volving.
FIDUCIARY RESPONSIBILTY-Prohibited transaction rules-owner-
employee, individual retirement accounts, subject to.
Trustee and custodial requirements.
Internal Revenue Service:
Appropriations authorized ------------------------ ------_ 827-28,
1178-79, 1276, 2511, 2620, 2693, 3042, 3152, 3226, 3431-32, 3606-07,
4600,4959
Office of Employee Plans and Exempt Organizations_ --- ------_ 233,
825-27, 1076, 1101-02, 1106, 1175-81, 1615, 1623-24, 1718. 1877,
2510-11, 2595, 2620, 2691-93, 3041-42, 3126, 3151, 3223-25, 3431-32,
3605-06, 3612, 4175-76, 4599-4600, 4959
Keogh (H.R. 10) plans:
Owner, proprietary, shareholder employee plans -------------- 336-39,
361-63. 380-88, 874-75, 1021-35, 1040-42, 1077-78, 1097-98. 1187-
(XLV)







XL*VI

INTERNAL REVENUE CODE-Continued
Keogh (H.R. 10) Plans-Continued lative in
Owner, proprietary, etc.--continued Leislativ
1203, 1523-37, 1543-46, 1550, 1565, 1568, 1616, 1647, 1652-53, 1655-
60, 1694, 1707-08, 1730-49, 1755-56, 1778-83, 1786-90, 1878-79,
2473-75, 2490, 2512-21, 2525-26, 2623, 2699-2715, 2747-48, 3005-07,
3021-22, 3044-51, 3054-56, 3154, 3232-46, 3281-82, 3434-35, 3401,
3467, 3471-72, 3561-70, 3636, 3850-55, 3857-63, 3868-72, 3891-92,
4139-43, 4178-85, 4190, 4532, 4566, 4570, 4583, 4600-02, 4680, 4684,
4690, 4760, 4763-64, 4946, 4950, 4959-65
Self-employed plans------------------------ -------- 240-42,
360-62, 378-79, 387, 1078, 1094, 1184, 1187, 1192-93, 1542-46, 1565-
66, 1568, 1616, 1644-45, 1652, 1656-57, 1693, 1813-15, 1850-51, 1861,
1877, 1879, 2473-75, 2490, 2512-21, 2595-96, 2622-23, 2635, 2698-
2712, 3005-06, 3022-23, 3043-51, 3056, 3126-27, 3153-55, 3167, 3230,
3233-45, 3409, 3412, 3433-35, 3448, 3452-53, 3458-59, 3461, 3466,
3471, 3473, 3514-15, 3550-70, 3576-77, 3582, 3584, 3589-91, 3858-62,
3882-83, 3885, 4139-43, 4155-56, 4170, 4175-77, 4532, 4566, 4570,
4600-02, 4610-14, 4679-80, 4684, 4688-90, 4709, 4715, 4746, 4753,
4760, 4763-64, 4777, 4782, 4786, 4809, 4813, 4823, 4946, 4950, 4959-62,
4964-65
See also:
ENFORCEMENT-Keogh (H.R. 10) plans, penalties involving.
FIDUCIARY REsPoNSIBILITY-Prohibited transaction rules--wner-
employee, individual retirement accounts, subject to.
Trustee and custodial requirements.
Limitations on benefits and contributions for qualified plans and tax
sheltered annuities--------- -- ----------------- -------- 383-87,
1023-28, 1034-35, 1050-52, 1054-56, 1061, 1187, 1190-94, 1215, 1617,
1661-63, 1696-97, 1708-14, 1732-54, 1778-83, 1786-90, 1878-79, 2453,
2553-68, 2596, 2623-26, 2697-99, 2706-13, 2977, 2983, 3084-99, 3127,
3155-57, 3230-31, 3248-53, 3408-10, 3435-38, 3451-52, 3468-69, 3473,
3549, 3560, 3576-77, 3583, 3585, 3635-36, 3850-57, 3862-63, 3878-79,
4218-34, 4559, 4610-15, 4672, 4681-82, 4688, 4709-10, 4715, 4760-62,
4782, 4808, 4813, 4986-94
Lump-sum distributions--------------------1035-0,
1078, 1102-03, 1195, 1205-14, 1537-42, 1617, 1653, 1662-63, 1707-08,
1715, 1877-78, 2568-80, 2596, 2626-27, 2733-45, 3099-3111, 3127,
3157-58, 3266-78, 3438-39, 3549, 3863-68, 4234-47, 4615-22, 4682,
4689, 4761, 4783, 4994-99
Nonqualified plans, restrictions regarding certain -----------1305-07,
1336-38, 3632-33, 3763-65
Puerto Rican pension plans -----------------------2480-81,
2750, 3012, 3283, 4146, 4651, 4949
Retroactive changes in plans -------- ------------------- 1053-54,
1056, 1215, 1558-59, 1663, 2489-90, 2747, 2753, 3021-22, 3179,
3285-86, 3326, 3443-44, 3885-86, 4155-56, 4553-54, 4651-52, 4950
Rollover transfers ------------- --------- --------------247-49,
362-68. 888-93, 1010-11, 1075, 1097, 1142-44, 1201, 1512-13, 1515-17,
1628, 2535-36, 2548-52, 2618, 2726-28, 3065-66, 3079-84, 3150, 3259-
60, 3317, 3430, 3682-87, 4199-4200, 4213-15, 4608-09, 4663, 4677,
4690, 4752, 4759, 4780, 4788, 4797-98, 4808, 4812, 4830, 4966, 4968,
4970, 4975-76
Salary reduction plans ..... -- --.--. ---------. 1661-62,
2580-83, 2,0, 97, 2627-28, 2729-32, 3111-14, 3127-28, 3158-59,
3262-64, 3439, 4247-48, 4622-23, 4682, 4685-86, 4689, 4761, 4783,
4804-05, 4999-5000
Tax deductibility of contributions (Sec FUNDING--Tax deductibility of
contributions.)
Termination insurance requirement (See TEMINATION INSTANCE-In-
ternal Revenue Code, amendments to.)
Trustee and custodial requirements- ---------------------- 347-48,
379-80, 387, 940, 1002, 1021-23, 1034-35, 1045-47, 1061, 1196, 1503-
05, 1524-25, 1536, 1550-51, 1568, 2475-78, 2490, 2530, 2540, 2727,
2747-49, 3007-09, 3021-22, 3060, 3071, 3253-54, 3280-82, 3735-6,
3828-30, 3849-50, 32-3, 3876-78, 4140-43, 415556, 4194-95, 4205,
4214, 4565-6, 4603, 4946-47 4950, 4966, 4971, 4978








XLVII

MISCELLANEOUS
Pages in
Legislative History
Accountants, standards and qualifications for------------------------ 18,
19, 704-05, 2262-63, 3505-07, 3923, 4524-25, 4939
See also REPORTING AND DISCLOSURE-Financial statements, annual
audit of.
Actuaries:
Actuarial advisory board -------------------------- 642,
655, 1612-13, 2616, 2662, 2688, 3148, 3205, 3227, 3334-35
Standards and qualifications for ----------_------- ------- 28,
107-08, 241, 489-90, 603, 623, 706, 995-96, 1092, 1125, 1136-38, 1487-
88, 1612-13, 1627, 1722, 2265, 2503-05, 2616, 2662, 2680-82, 3034-36,
3147-48, 3194-95, 3213-14, 3428, 3510, 3812, 3924-26, 4168-70, 4628-
29, 4677, 4765, 5009-10
See also REPORTING AND DISCLOSURE-Actuarial report, filing require-
ments.
Advisory council ---_ ------------------ ----- 49-50,
167-69, 318, 563, 614, 632, 741-43, 1438-40, 1851-52, 2299-2301,
3301, 3769-71, 3966-68, 4598, 4902-03
Agency jurisdiction question ------- -------------------- 1175-76,
1213-14, 1604-06, 1623-24, 1646, 1669, 1727-28, 2584-85, 3121-22,
3293, 3295-96, 3352-60, 3376, 3386, 3405-06, 3443-44, 3485-90, 3585,
3590, 4663, 4671, 4686-87, 4692, 4744-45, 4770, 4784
Bonding -------------------------------- 31,
38-41, 590, 721-24, 2281-83, 2368, 3300, 3944-47, 4591, 4771, 4895-
96
Case studies----------------------------- 1599-1600
1621-22, 1634-36, 1666-68, 1767-69, 1830-31, 1866-71, 3508-09, 4658,
4665, 4694, 4710-13, 4717. 4749-50, 4790, 4792, 4795-96, 4799
Coordination between Departments of Labor and the Treasury ------ 318,
952-53, 957, 979, 1443, 1456, 1458, 1718-20, 1727-28, 1858, 2400-01,
2413-14, 2432-33, 2746, 2985, 3148, 3167-68, 3212-13, 3279. 3293,
3318-19, 3345, 3376, 3500, 3522-23, 3776, 3784-85, 3941-42, 4051,
4118, 4135, 4578, 4582, 4632-36, 4679, 4686-87, 4744-45, 4760, 4770,
4842, 4856, 4889-90, 4979, 5002-06
See also Agency jurisdiction question.
Discrimination based on age, sex, etc -------------------------1641,
1770-73, 1823-24, 1862-63, 3475, 3496-97, 3510-11, 3518-19, 4578
Enrolled actuary (See Actuaries-standards and qualifications for.)
Equal Employment Opportunity Act (See Discrimination based on age,
sex, etc.)
Federal contracts and grants, protection of pensions -- ----------- 526-27,
586, 600, 609, 623, 1340-41, 1620-21, 1673, 1720. 1794-96, 2483-89,
2595, 2607, 2660, 2691, 3014-21, 3126, 3133, 3137, 3186, 3422, 3669-70,
4148-55, 4549, 4628, 4737-38, 5007-09
Findings and declarations of policy:
Declarations of policy -- ----------------------- 5-6,
69, 96-97, 231, 281, 325, 488, 599-601, 688-89, 1078-79, 1086-87,
1633-35, 1692, 2245-46, 2348-49, 2352-54, 2361-62, 2590-91, 2603-04,
3121-22, 3134-35, 3293-94, 3297, 3306, 3311, 3378, 3415, 3453-54,
3477-78, 3493, 3902-03, 4657, 4673, 4683, 4686, 4701, 4706-07, 4840
Need for legislation ------------------------------- 3-5,
67-69, 94-96, 230-31, 486-88, 587-97, 686-88, 1069-72, 1080-86, 1602-
04, 165-68, 1634-36, 1759-64, 1829-31, 1860, 2243-45, 2349-55, 2387,
2592, 2598-2604, 3122-23, 3128-34, 3294-97, 3305, 3367-68, 3412-14,
3449-50, 3470-71, 3477-78, 3490-93, 3900-02, 3907-08, 4748-50, 4805-
06, 4839-40
See also:
FIDUCIARY-Need for regulation.
FUNDING-Need for regulation.
INTERNAL REVENUE CODE-Need for equalizing tax treatment.
PARTICIPATION AND VESTING--Need for.
TERMINATION INSURANCE-Need for insurance program.
Government plans, need for protection ----------------------- 875-76,
1135, 1305, 1339, 1613, 2331, 2356, 2389-90, 2482-83, 2490. 2594,
2606-07, 2613, 2635, 2679-80, 2752, 2908. 3013-14, 3125, 3137-38,
3167, 3211-12, 3284-85, 3312, 3316, 3321, 3344, 3418, 3424, 3445,
3635, 3668-69, 4043-44, 4147, 4627, 4685, 5006-07







XLVIII

MISCELLANEOUS-Continued
Pages in
Legislative History
Investment Company Act of 1940 --------------------------- 7,
71, 147, 151-52, 542, 546-47, 616, 699, 958, 962, 1169, 1171, 1413,
1418, 1459, 2258-59, 2359, 3306, 3308, 3744, 3748-49, 3910, 4563, 4843,
4882
Joint Board for the Enrollment of Actuaries (See Actuaries-standards
and qualifications for.)
Joint Pension Task Force ----------------------------4531,
4544, 4546, 4627-28, 4650, 4658, 4671, 4682, 4689, 4700, 4703-04, 4736,
4761-62, 4764-65, 4769, 4771, 4804-05, 5006-07
Labor Management Relations Act, 1947:
Extension of ---------------------------- 601,3903
Ineffectiveness of --- ------------ --- -------590,2351,4811
Office of Welfare and Pension Plan Administration--------------------- 110,
503, 587, 623, 1281, 4783-84
Portability:
Central fund/clearinghouse- ------------------- 78-81,
133-36, 528-31, 588, 610, 628, 878-93, 1074-75, 1098-99, 1106, 1140-44,
1146, 1222-23, 1342-57, 1603, 1611, 1613, 1620, 1627-28, 1650, 1707,
1722-23, 1730, 1793, 1840-47, 1878, 3543, 3673-82, 3683-88, 4663,
4677, 4708, 4759, 4766
Need for--------------------------- ------------ 593,
596-97, 609-10, 1098, 1140, 1222-23, 1601, 1603, 1627, 1722, 1760,
1839, 1842-43, 1846, 1876-77, 2392, 2618, 3149-50, 3319, 3430, 3474,
3496, 3544-48, 3588, 3590, 4692, 4694-95, 4698, 4701, 4714-15, 4766,
4803-04
Technical assistance------------------ ------------- 81,
136-37, 531, 610, 628-29, 887-88, 1099, 1141, 1352, 1844-45, 3544,
3681-82, 4631, 4759, 4766, 5021
See also:
INTERNAL REVENUE CODE-Rollover transfers.
REPORTING AND DISCLOSURE-Statement of vested rights.
Prohibition from holding plan office------------------------- 46-48,
178-79, 316-18, 574-75, 613, 620, 633, 738-41, 946-49, 1099, 1173,
1451-53, 1727, 2297-99, 2358, 2369, 3000, 3782-84, 3963-66, 4591,
4894
Secretary of Health, Education, and Welfare, duties regarding vested pen-
sion benefits (See REPORTING AND DISCLOSURE-Statement of vested
rights.)
Secretary of Labor:
Administrative authority --- ----------------- 105-07,497-99, 623
Annual report to Congress ------------------------- 49,
109, 168-69, 502, 564, 773, 2338, 2375, 2913, 3304, 3771, 3967, 4050,
4597, 4903-04
Appropriations authorized ------------------------110,
503, 775, 1282, 2340-41, 2374, 2916, 3304, 3612, 4053, 4596, 4902
Delegation of authority of State agency ----------------- 603-04
772-73, 2346, 4052, 4059, 4771
Duties of Assistant Secretary--- -------- 110-11, 503, 623, 1281, 3034-36
Employees of the Department, conflict of interest-- -------- 775,
2340,2374, 2916,3304, 4597, 4901
Relations with other government agencies --------- --------- 35-36
109-10, 306, 502, 603-04, 619, 771-72, 774, 952, 1282, 1856, 2337,
2339-40, 2374, 2914-16, 3304, 3742, 4051-53, 4597, 4623-27, 4679,
4686-87, 4728, 4744-45, 4781-82, 4901, 5005
See also Coordination between Departments of Labor and the
Treasury.
Studies by _. -------------------------------- 36,
108-09, 5001, 600, 603, 605, 623, 766, 1436-38, 2331, 2373, 2905-06,
3304, 3766-69, 4042-43, 4526, 4627, 4903-04
See also Federal contracts and grants, protection of pensions.
Transfer of functions and personnel from Labor-Management Services
Administration ------- -------------- 111,503-04, 623,1281-82























MISCELLANEOUS-Continued
Pages in
Legislative History
Sex discrimination (See Discrimination based on age, sex, etc.)
Social Security Administration (See REPORTING AND DISCLOSURE-State-
ment of vested rights.)
United Mine Workers plan (See INTERNAL REVENUE CODE-Government
negotiated plans, tax treatment of certain participants.)
Welfare and Pension Plans Disclosure Act:
Ineffectiveness of ----------- 589-90,1600,2351, 3295, 3305, 3307,4811
Jurisdiction ----------- 592,1085, 2603, 3134, 3295, 3305, 3377, 3386, 3414
Repeal of --------------- 51, 743, 2301, 2369, 3301, 3968, 4742-43, 4858

(XLIX)













































25-028 0-76 vol. 1- 4

















[From the Congressional Record-House, Jan. 3, 1973.]
a *l
Puiuc BLru AND RESOLUTIONS
Under clause 4 of rule XXII, public bills and resolutions were
introduced and severally referred as follows:
*
By Mr. Dent (for himself and Mr. Perkins):
H.R. 2. A bill to revise the Welfare and Pension Plans Disclosure
Act; to the Committee on Education and Labor.
*
By Mr. Dent (for himself and Mr. Perkins) :
H.R. 462. A bill to revise the Welfare and Pension Plan Disclosure
Act; to the Committee on Education and Labor.
*

S SAFEGUARDING PRIVATE PENSION PLANS
Mr. DENT. Mr. Speaker, I am pleased to submit to my colleagues
and all others concerned about safeguarding the benefits of citiZans
who participate in private pension plans, two bills that I consider a
"first step" toward our goal of securing retirement benefits earned
during working years.
These measures are introduced today, on the first meeting of the
93rd Congress, to underscore the immediate need for congressional
attention to the plight of workers who, for one reason or another, do
not realize the income to which they should be entitled upon retire-
ment. I do not maintain that the two bills I put before the House today
are the final answer to this complex problem, but they are the product
of comprehensive studies in the field. It is my hope that they will
serve as the vehicles by which we can renew our efforts to solicit con-
structive suggestions for reform of the private pension system, and
fashion legislation which will eventually result in the enactment of
meaningful safeguards for the rights of retirees.
It is my intention to call for hearings in Washington early next
month before the General Subcommittee on Labor, and to press for
early action on this issue.
[The texts of the bills as introduced follow:]
(1)


















































































































































































































































L -:







3

93D .CONGRESS R 2
lrr S B~Eon




IN THE HOUSE OF REPRESENTATIVES
JANUrY 3,1973
Mr. DENT (for himself and Mr. PERKINs) introduced the following bill; which
was referred to the Committee on Education and Labor




A BILL
To revise the Welfare and Pension Plans Disclosure Act.

1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Employee Benefit Secu-
4 rity Act".
5 FINDINGS AND DECLARATION OF POLICY
6 SEO. 2. (a) The Congress finds that the growth in size,
7 scope, and numbers of employee benefit plans in recent years
8 has been rapid and substantial; that the operational scope
9 and economic impact of such plans is increasingly interstate;
10 that the continued well-being and security of millions of
11 employees and their dependents are directly affected by






4

2

1 these plans; that they are affected with a national public

2 interest; that they have become an important factor affecting
3 the stability of employment and the successful development

4 of industrial relations; that they have become, an important

5 factor in commerce because of the -interstate character of

6 their activities, and of the activities of their participants, and
7 the employers, employee organizations, and other entities

8 by which they are established' or maintained; that a large
9 volume of the activities carried on by such plans are affected

10 by means of the mails and instrumentalities of interstate
11 commerce; that owing to the lack of employee information

12 and adequate safeguards concerning their operation, it is
13 desirable in the interests of employees and their beneficiaries,

14 and to provide for the general welfare and the free flow of
15 commerce, that disclosure be made and safeguards be pro-

16 vided with respect to the 'establishment, operation, and

17 administration of such plans; that they substantially affect

18 the revenues of the United States because they aie afforded
19 preferential Federal tax treatment; that despite the enor-

20 mous growth in such plans many employees with long years
21 of employment are losing anticipated retirement benefits

22 owing to the lack of vesting provisions in such plans; that

23 owing to the inadequacy of current minimum standards,
24 the soundness and stability of plans with respect to adequate
25 funds to pay promised benefits may be endangered; that










3
1 owing to the involuntary termination of plans before requi-
2 site funds have been accumulated, employees and their

3 dependents have been deprived of anticipated benefits; and
4 that it is therefore desirable in the interests of employees

5 and their beneficiaries, for the protection of the revenue of

6 the United States, and to provide for the free flow of coll-

7 mierce, that miniinmu standards be provided assuring the

8 equitable character of such plans and their financial sound-
9 ness.

10 (b) It is hereby declared to be the policy of this Act
11 to protect interstate commerce and the interests of partici-

12 ipants in employee benefit plans and their beneficiaries, by

13 .requiring the disclosure and reporting to participants and
14 beneficiaries of financial and other information with respect

15 thereto, by establishing standards of fiduciary conduct, re-

16 sponsibility, and obligation upon all persons who exercise
17 any powers of control, management, or disposition with

18 respect to employee benefit funds or have authority or
19 responsibility to do so, or have authority or responsibility

20 in the administration of employee benefit plans, and by
21 providing for appropriate remedies, sanctions, and ready

22 access to the Federal courts.

23 (c) It is hereby further declared to be the policy of
24 this Act to protect interstate commerce, the Federal taxing

25 power, and the interests of participants in private pension






6

4
1 plans and their beneficiaries by improving the equitable
2 character and the soundness of such plans by requiring them
3 to vest the accrued benefits of employees with significant pe-
4 riods of service, to meet minimum standards of funding, and

5 to protect the vested rights of participants against losses due
6 to involuntary plan termination through the establishment of
7 vested liability insurance.
8 DEFINITIONS

9 SEC. 3. When used in this Act-
10 (1) The term "employee welfare benefit plan" means
11 any plan, fund, or program which is communicated or its
12 benefits described in writing to the employees, and which
13 was heretofore or is hereafter established or maintained by
14 an employer or by an employee organization, or by both,

15 for the purpose of (A) providing for its participants or their
16 beneficiaries, through the purchase of insurance or otherwise,
17 medical, surgical, or hospital care or benefits, or benefits in

18 the event of sickness, accident, disability, death or unemploy-
19 ment, or vacation benefits, apprenticeship or other training
20 programs, day care centers, scholarship funds, prepaid legal
21 services, or (B) in the case of a fund subject to the restric-

22 tions of section 302 (c) of the Labor-Management Relations
23 Act providing any other benefit which may be permitted by
24 section 302 (c) (5) or 302 (c) (6) of that Act.
25 (2) The term "employee pension benefit plan" or







7

5
1 "pension plan" means any plan, fund, or program which is
2 communicated or its benefits described in writing to the em--
3 ployees, and which was heretofore or is hereafter established
4 or maintained by an employer or by an employee organiza-
5 tion, or by both, for the purpose of providing for its partici-
6 pants or their beneficiaries, by the purchase of insurance or
7 annuity contracts or otherwise, retirement benefits, and in-
8 cludes any deferred profit-sharing plan which provides bene-

9 fits at or after retirement.
10 (3) The term "employee benefit plan" or "plan" means
11 an employee welfare benefit plan or an employee pension
12 benefit plan or a plan providing both welfare and pension
13 benefits.
14 (4) The term "employee benefit fund" or "fund"

15 means a fund of money or other assets maintained pursuant
16 to or in connection with an employee benefit plan and in-
17 cludes employee contributions withheld but not yet paid

18 to the plan by the employer. The term does not include:
19 (1) any assets of an investment company subject to regula-
20 tion under the Investment Company Act of 1940; (2)
21 premiums, subscription charges, or deposits received and

22 retained by an insurance carrier or service or other organiza-
23 tion, except for any separate account established or main-
24 tained by an insurance carrier.
25 (5) The term "employee organization" means any






8



1 labor union or any organization of any kind, or any agency or

2 employee representation committee, association, group, or
3 plan, in which employees participate and which exists for the
4 purpose in whole or in part, of dealing with employers con-

5 cerning an employee benefit plan, or other matters incidental
6 to employment relationships; or any employees' beneficiary

7 association organized for the purpose, in whole or in part,

8 of establishing such a plan.

9 (6) The term "employer" means any person actingn

10 directly as an employer or indirectly in the interest of an

11 employer in relation to an emplloyee benefit plan, and shall

12 include any State or political subdivision of a State and in-

13 eludes a group or association of employers acting for an
14 employer in such capacity.

15 (7) The term "employee" means any individual em-
16 ployed by an employer.

17 (8) The term "participant" means any employee or

18 forlier employee of an employer or any member or former
19 memnber of an employee organization who is or may become

20 eligible to receive a benefit of any type from an employee
21 lenefit plan, or whose beneficiaries may be eligible to receive

22 any such benefit.

23 (9) The term "beneficiary" means a person designated
24 by a participant or by the terms of an employee benefit
25 plan who is or may become entitled to a benefit thereunder.







9

7
1 (10) The 'term "person" means an individual, partner-
2 hip;, corporation, mutual company, joint-stock company,
3' trust, unincorporated organization, association, or employee
4 organization.
5 '(11) The term "State" includes any State of the United
6 States, the District of Columbia, Puerto Rico, the Virgin
7 Islands, American Samoa, Guam, Wake Island, the Canal
8 Zone, and Outer Continental Shelf lands defined in the
9 Outer Continental Shelf Lands Act (43 U.S.C. 1331-

10 1343).
11 (12) The term "commerce" means trade, traffic, com-
12 merce, transportation, or communication among the several
13 States, or between any foreign country and any State, or

14 between any State and any place outside thereof.
15 (13) The term "industry or activity affecting com-
16 meree" means any activity, business, or industry in com-
17 merce or in which a labor dispute would hinder or obstruct

18 commerce or the free flow of commerce and includes any
19 activity or industry "affecting coThmerce" within the mear-

20 ing 'of 'te Labor-Management Relations Act, 1947, as.
21 amended, or the Railway Labor Act, as amended.
22 (14): The 'term '"Secretary" means the Secretary of
23' Labor. "
24 (15) The term "party in interest" means any ad-
25 miinigtrator, officer, tristee, custodian, counsel, or employee






10

8

1 of any employee benefit plan, or a person providing benefit

2 plan services to any such plan, or an employer any of whose
3 employees are covered by such a plan or any person control-
4 ling, controlled by, or under common control with, such em-
5 ployer or officer or employee or agent of such employer or
( such person, or an employee organization having members

7 covered by such plan, or an officer or employee or agent of

8 such an employee organization having members covered by
9 such plan, or a relative, partner or joint venturer of any of

10 the above described persons.

11 (16) The term "relative" means a spouse, ancestor,
12 children, grandchildren, brother, sister, son-in-law, daughter-
13 in-law, father-in-law, mother-in-law, brother-in-law, or
14 sister-in-law.
15 (17) The term "administrator" means-
16 (a) the person specifically so designated by the
17 terms of the plan, collective bargaining agreement, trust

18 agreement, contract, or other instrument, under which
19 the plan is operated; or
20 (b) in the absence of such designation, (A) the
21 employer in the case of an employee benefit plan estab-

22 lished or maintained by a single employer, (B) the
23 employee organization in the case of a plan established
24 or maintained by an employee organization, or (C)
25 the association, committee, joint board of trustees, or










9

1 other similar group of representatives of the parties who
2 established or maintain the plan, in the case of a plan
3 established or maintained by two or more employers or

4 jointly by one or more employers and one or more
5 employee organizations.
6 (18) The term "separate account" means an account es-
7 tablished or maintained by an insurance company under

8 which income, gains, and losses, whether or not realized,
9 from assets allocated to such account, are, in accordance with

10 the applicable contract, credited to or charged against such
11 account without regard to other income, gains, or losses of

12 the insurance company.
13 (19) The term "adequate consideration" when used in
14 section 111 means (A) in the case of a security for which
15 there is a generally recognized market, either (i) the price
16 of the security prevailing on a national securities exchange
17 which is registered with the Securities and Exchange Com-
18 mission, or (ii) if the security is not traded on such a national
19 securities exchange, a price not less favorable to the fund
20 than the offering price for the security as established by the
23 current bid and asked prices quoted by persons independent
22 of the issuer; and (B) in the case of an asset other than a
23 security for which there is a generally recognized market,






12

10

1 the fair market value of the asset as determined, in good

2 faith by the trustee or administrator.

3 (20) The term "nonforfeitable pension benefit" means
4 a legal claim obtained by a participant or his beneficiary to

5 that part of an imnlediate or deferred pension benefit, which

G notwithstanding any con(litions subsequent which could affect

7 receipt of any benefit flowing from such right, arises from the
8 participants service and is no longer contingent on continued

9 service.

10 (21) The term "accrued benefit" means that benefit
11 which, irrespective of whether such benefit is nonforfeitable,

12 is equal to: (1) in the case of a profit-sharing or money

13 purchase type pension plan, the amount of a participant;

14 (2) in the case of a unit benefit-type pension plan, the
15 benefit units credited to a participant; or (3) in the case

16 of other types of employee benefit plans that portion of the

17 prospective benefit as constitutes the participants accrued

18 benefit under the terms of the plan or as the secretary may

19 by rule or regulation provide.

20 (22) The term "security" has the same meaning as
21 such term has under section 2 (1) of the Securities Act of

22 1933 (15U.S.C. 77b(1)).

23 (23) The term "fiduciary" means any person who exer-
24 cises any power of control, management, or disposition or
25 renders investment advice for.a fee or other compensation,








13

11
1 direct or indirect, with respect to any moneys or other

2 property of an employee benefit fund, or has any authority
3 or responsibility to do so, or who has any authority or

4 responsibility in the administration of an employee benefit

5 plan.
6 (24) The term "market value" or "value" means fair

7 market value where available, and otherwise the fair

8 value as determined in good faith by the trustee or admin-

9 istrator.

10 (25) The term "regular retirement benefit" means only
11 that benefit payable under the plan in the event of retire-

12 ment at the regular retirement age.

13 (26) The term "accrued portion of the regular retire-
14 ment benefit" means-
15 (a) Under a plan which provides for payment of a
16 fixed benefit, that portion of such benefit which would

17 have been payable at regular retirement age, computed
18 as of the day of termination of employment, as the num-

19 ber of years of credited service under the plan bears to
20 the total possible years of credited service had employ-
21 ment continued to the regular retirement age.

22 (b) Under a plan which provides for benefits based
23 solely upon the amount contributed to the employee's
24 account, the amount credited to such account toward







14

12

1 regular retirement benefits at the time of termination of
2 employment.

3 (27) The term "regular retirement age" means not
4 later than age sixty-five.

5 (28) The term "vested liabilities" means the present
6 value of the immediate or deferred benefits available at reg-

7 ular retirement age for participants and their beneficiaries

8 which are nonforfeitable and for which all conditions of eli-

9 gibility have been fulfilled under the provisions of the plan

10 prior to its termination.

11 (29) The term "current value" means fair market value
12 where available and otherwise the fair value as determined

13 in good faith by the trustee or administrator, assuming an

14 orderly liquidation as of the statement date.

15 (30) The term "present value" means either cost, ad-

16 justed for subsequent price fluctuations, or market value,

17 adjusted to reflect anticipated events. Such adjustments shall

18 conform to such rules and regulations as the Secretary may

19 provide.

20 TITLE I-FIDUCIARY RESPONSIBILITY AND

21 DISCLOSURE

22 COVERAGE

23 SEC. 101. (a) Except as provided in subsection (b),

24 this title shall apply to any employee benefit plan if it is

25 established or maintained (1) by any employer engaged in







15

13

1 commerce or in any industry or activity affecting commerce

2 or (2) by any employee organization in which employees

3 engaged in commerce or in any industry or activity affecting

4 commerce participate or (3) by both.

5 (b) This title shall not apply to an employee benefit
6 plan if-

7 (1) such plan is administered by the Federal Gov-

8 ernment or by an agency or instrumentality of the Fed-

9 eral Government;

10 (2) such plan was established and is maintained

11 solely for the purpose of complyiing with applicable
132 workmen's complensation laws or u eimcployment com-

13 pensation disability insurance laws; or

14 (3) such plan covers not more than eight partici-

15 pants, except that participants and beneficiaries of such

16 a plan shall be entitled to maintain an action to recover

17 benefits or to clarify their rights to future benefits as

18 provided in section 106 (e) (1) (B).

19 DUTY OF DISCLOSURE AND REPORTING

20 SEC. 102. (a) The administrator of an employee benefit
21 plan shall cause to be published in accordance with section

22 105 to each participant or beneficiary covered thereunder
23 (1) a description of the plan and (2) an annual financial

24 report. Such description and such report shall contain the
25 information required by sections 103 and 104 of this title



25-028 0 76 vol. 1 5







16

14

1 in such form and detail as necessary to fully and fairly dis-
2 close all pertinent facts.

3 (b) The Secretary shall require the filing of special
4 terminal reports on behalf of an employee benefit plan which

5 is winding up its affairs. Such reports shall be required to be
6 filed regardless of the number of participants remaining in

7 the plan and shall be on such forms and filed in such manner
8 as the Secretary may by regulation prescribe.

9 DESCRIPTION OF THE PLAN

10 SEC. 103. (a) A description of any employee benefit
11 plan shall be published as required herein within ninety days

12 after the establishment of such plan or within ninety days
13 after such plan becomes subject to the title, whichever is
14 later. Descriptions (conforming all amendments to the plan)
15 shall be republished as provided herein once every five years
16 subsequent to initial publication.

17 (b) The description of the plan shall be comprehensive
18 and shall be written in a manner calculated to be understood

19 by the average plan participant and shall include the name
20 and type of administration of the plan; the name and address
21 of the administrator; names, titles, and addresses of any

22 trustee or trustees (if they are persons different from
23 the administrator) ; a description of any relevant collective
24 bargaining agreement in which the plan is mentioned;
25 the schedule of lbnefits; a descriplion of the provisions







17

15
1 providing for nonforfeitable pension benefits; the source

2 of the financing of the plan and the identity of any
3 organization through which benefits are provided; whether
4 the records of the plan are kept on a calendar year basis,

5 or on a policy or other fiscal year basis, and if on the

6 latter basis, the date of the end of such policy or fiscal year;
7 the procedures to be followed in presenting claims for bene-

8 fits under the plan and the remedies available under the plan
9 for the redress of claims which are denied in whole or in

10 part. All amendments to the plan shall be included in the

11 description on and after the effective date of such amend-

12 ments.
13 ANNUAL REPORTS
14 SEC. 104. (a) (1) An annual report shall be published
15 with respect to any employee benefit plan to which this

16 title applies. Such report shall be published as required
17 under section 105, within one hundred and fifty days after
18 the end of the calendar, policy, or fiscal year on which the

19 records of the plan are kept.
20 (2) If some or all of the benefits under the plan are
21 provided by an insurance carrier or other organization, such

22 carrier or organization shall certify to the administrator of
23 such plan, within one hundred and twenty days after the
24 end of each calendar, policy, or other fiscal year, as the case






18

16
1 may be, such information necessary to enable such administra-

2 tor to comply with the requirements of this Act.

3 (3) (A) Except as provided in subparagraph (B), the
4 administrator of an employee benefit plan shall engage, on
5 behalf of all plan participants, an independent qualified pub-
6 lic accountant who shall conduct such an examination of the
7 books and records of the plan and fund as may be necessary
8 to enable him to certify whether the financial statements re-
9 quired by section 104 (b) have been prepared according to

10 generally accepted standards of accounting. Such examina-
11 tion shall be conducted in the form of an audit in accordance

12 with generally accepted auditing standards, and shall involve
13 such tests of the books and records of the plan and fund as
14 are considered necessary by the auditor. The certification by
15 the independent qualified public accountant shall be made a
16 part of the annual report.
17 (B) The opinion required by subparagraph (A) need
18 not be expressed as to any statements prepared by a bank or
19 similar institution or insurance carrier as required by section
20 104 (b) (9) if such statements are certified by the bank, simi-
21 lar institution, or insurance company as accurate are made a

22 part of the annual report.
23 (C) For purposes of subparagraph (A) of this para-
24 graph, the term "qualified public accountant" means-







19

17

|1 (i) a person who is a certified public accountant

2 certified by a regulatory authority of a State,
(ii) a person who is a licensed public accountant,

4 licensed on or before December 31, 1973, by a regu-
5 latory authority of a State, or

6 (iii) with respect to audits performed before Jan-
7 uary 1, 1976, any other person who meets, in the
8 opinion of the Secretary, standards of education and
9 experience which are representative of the highest

10 prescribed by the licensing authorities of the several
11 States which provide for the continuing licensing of

12 public accountants and which are prescribed by the
13 Secretary in appropriate regulations;
14 except that if the Secretary deems it necessary in the public
15 interest, he may prescribe by regulation higher standards'
16 than those required for the practice of public accountancy
17 by the regulatory authorities of the States, and a person
18 shall be considered a qualified public accountant for purposes
19 of subparagraph (A) only if he meets such standards.
20 (b) A report under this section shall include-
21 (1) the amount contributed by each employer;
22 the amount contributed by the employees; the amount
23 of benefits paid or otherwise furnished; the number






20

18
1 of employees covered; and in the case of a multiem-
2 ployer plan the number of covered employees per
3 employer; a statement of assets, liabilities, receipts, and
4 disbursements of the fund; a detailed statement of the

5 salaries and fees and commissions charged to the plan,
6 to whom paid, in what amount, and for what purposes;
7 the name and address of each fiduciary, his official posi-
8 tion with respect to the plan, his relationship to the
9 employer of the employees covered by the plan, or the

10 employee organization, and any other office, position, or
11 employment he holds with any party in interest;

12 (2) a schedule of all investments of the fund show-
13 ing as of the end of the fiscal year:
14 (A) A statement showing the assets of the
15 fund aggregated by types of investment which shall
16 be valued at their current value, as well as the same
17 data, displayed in comparative form for the end of

18 the previous fiscal year.
19 (B) A statement of all receipts and disburse-
20 ments during the preceding twelve-month period
21 aggregated by general sources and applications.

22 (C) A statement listing any changes in ap-
23 pointmcnt of trustee, qualified public accountant,
24 insurance carrier, actuary, or administrator and the
25 reason for the change.






21

.19

1 (3) a schedule of all assets held for investment pur-
2 poses aggregated and identified by issuer, borrower or

3 lessor or similar party to the transaction, maturity date,

4 rate of interest, collateral, par or maturity value, cost,

5 and current value;

6 (4) a schedule of each receipt and disbursement

7 from the fund during the year covered by the report. The

8 schedule shall be prepared in chronological order by the

9 date of the transaction involved and shall identify each

10 transaction by transaction date, description of the asset

11 involved, specifying issuer, borrower or lessor or similar

12 party to the transaction, rate of interest, maturity date,

13 collateral, par or maturity value and shall enumerate any
14 expense occasioned by the transaction and the proceeds

15 or cost to the fund. In the case of regular and recurring

16 transactions such as receipt of contributions or benefit

17 payments these may be aggregated on a periodic basis,

18 at least monthly. In the case of a sale, exchange, or re-

19 demption of an investment asset the cost of the asset

20 must also be shown. In the case of securities where a

21 transaction involves more than a single cost or price the

22 average unit cost or price may be applied to the total

23 units involved and the price or cost aggregated on that

24 basis;

25 (5) a schedule of each transaction involving a per-







22

20
1 son known to be party in interest, an indication of each

2 asset purchased, sold, or exchanged; the purchase or
3 selling price; expenses incurred in connection with the

purchase, sale, or exchange; the cost of the asset, the

5 present value of the asset, and the net gain (or loss) on

6 each sale; the identity of the seller in the case of a pur-
7 chase, or the identity of the purchaser in the case of a

8 sale and his relationship to the plan, the employer, or
9 any employee organization;

10 (6) a schedule of all loans made from the fund
11 during the reporting year or outstanding at the end of
12 the year, and a schedule of principal and interest pay-

13 ments received by the fund during the reporting year,
14 aggregated in each case by type of loan, and in addition
15 a separate schedule showing as to each loan which-

16 (A) was made to a party in interest, or

17 (B) was in default, or

18 (C) was written off during the year as uncol-
19 lectable,
20 unless such loan was a loan to a participant in a profit-
21 sharing plan and such loan did not exceed the value of

22 his vested benefit either at the time that such loan was
2: made or on the date of the report, and was not at terms
24 more favorable than those available to other plan par-
25 ticipants, the following information: the original principal






23

21
1 amount of the loan, the amount of principal and interest
2 received during the reporting year, the unpaid balance,
3 the identity and address of the obligor, a detailed descrip-

4 tion of the loan (including date of making and maturity,
5 interest rate, the type and value of collateral and other

6 material terms), the amount of principal and interest
7 overdue (if any) and an explanation thereof;

8 (7) a list of all leases with-
9 (A) persons other than parties in interest who

10 are in default, and

11 (B) any party in interest,
12 including information as to the type of property leased

1 (and, in the case of fixed assets such as land, buildings,
14 leasehold, and so forth, the location of the property),
15 the identity of the lessor or lessee from or to whom the
16 plan is leasing, the relationship of such lessors and
17 lessees, if any, to the plan, the employer, employee

18 organization, or any other party in interest, the termi
19 of the lease regarding rent, taxes, insurance, repair4
20 expenses, and renewal options; if property is leased
21 from persons described in (B) the amount of rental:

22 and other expenses paid during the reporting year;
23 and if property is leased to persons described in (A) or
24 (B), the date the leased property was purchased and
25 its cost, date the property was leased and its approx-







24

22

1 imate value at such date, the gross rental receipts dur-
2 ing the reporting period, expenses paid for the leased
3 property during the reporting period, the net receipts
4 from the lease, and with respect to any such leases in

5 default, their identity, the amounts in arrears, and a
6 statement as to what steps have been taken to collect
7 amounts due or olherwise remedy lhe default;
8 (8) a detailed list of purchases, sales, exchanges,

9 or any other transactions with any party in interest
10 (including investments in securities or properties)
11 made during the year, including information as to the
12 asset involved, the price, any expenses connected with
13 the transaction, the cost of the asset, the proceeds, the
14 current value of the asset, the net gain or loss, the
15 identity of the other party to the transaction and his
16 relationship to the plan;
17 (9) if some or all of the assets of a plan or plans

18 are held in a common or collective trust maintained by
19 a bank or similar institution or in a separate account
20 maintained by an insurance carrier or by a bank as
21 trustee, the report shall include the most recent state-

22 ment of assets and liabilities of such common or collective
23 trust, and in the case of a separate account or trust, such
24 other information as is required under paragraphs (2),
25 (3), (4), (5), (6), and (7) of this subsection. In





25

23
1 such case the bank or similar institution or insurance
2 carrier shall certify to the administrator of such plan
3 or plans, within one hundred and twenty days after the
4 end of each calendar, policy, or other fiscal year, as the
5 case may be, the information necessary to enable the
6 plan administrator to comply with the requirements of
7 this title;
8 (10) if the assets of the plan are held in more than
9 one fund, then the schedule required under subparagraph

10 (4) may be prepared for each fund or at the option of
11 the administrator, the required information may be pre-
12 pared for all such funds in one schedule treating the

13 assets as though they were held in a single fund.
14 (c) If the only assets from which claims against an
15 employee benefit plan may be paid are the general assets of
16 the employer or the employee organization, the report shall
17 include (for each of the past five years) the benefits paid

18 and the average number of employees eligible for partici-
19 pation.
20 (d) If some or all of the benefits under the plan are
21 provided by an insurance carrier or other organization such
22 report shall include with respect to such plan (in addition to
23 the information required by subsection (b)) the following:
24 (1) the premium rate or subscription charge and
25 the total premium or subscription charges paid to each






26

24

1 such carrier or organization and the approximate number

2 of persons covered by each class of such benefits;
3 (2) the total amount of premiums received, the ap-

4 proximate number of persons covered by each class of
5 benefits, and the total claims paid by such carrier or other
6 organization; dividends or retroactive rate adjustments,

7 commissions, and administrative service or other fees or

8 other specific acquisition costs, paid by such carrier
9 or other organization; any amounts held to provide bene-
10: fits after retirement; the remainder of such premiums;

.11 and the names and addresses of the brokers, agents, or
12 other persons to whom commissions or fees were paid,

1;; the amount paid to each, and for what purpose: Provided,

14 That if any such carrier or other organization does not
. 5 maintain separate experience records covering the specific
14; groups it serves, the report shall include in lieu of the

17 information required by the foregoing provisions of this

18 pa"aiigraph (A) a statement as to the basis of its premium
19 rate or subscription charge, the total amount of prC-

20 miums or subscription charges received from the plan,
21 and a copy of the financial report of the carrier or other

22 organization, and (B), if such carrier or organization
23 i ncurs specific costs in connection with the acquisition

24 or retention, of any particular plan or plans, a detailed
25 statement of such costs.





27

25

1 (e) Every employee pension benefit plan shall include
2 with its annual report (to the extent applicable) the follow-
3 ing information:

4 (1) the type and basis of funding,

5 (2) the number of participanlts, both retired and

6 nonretired, covered by the plan,

7 (3) the amount of all reserves or net assets ac-
8 cumulated under the plan,

9 (4) tlhe present value of all liabilities for all non-
10 forfeitable pension benefits and the present value of all
11 other accrued liabilities,
12 (5) the ratios of the present value of the reserves
13 and assets described in (3) above to the liabilities de-
14 scribed in (4) above,

15 (6) a copy of the most recent actuarial report,
16 and-

17 (A) (i) the actuarial assumptions used in com-

18 puting the contributions to a trust or payments
19 under an insurance contract, (ii) the actuarial as-
20 sumptions used in determining the level of benefits,
21 and (iii) the actuarial assumptions used in connec-

22 tion with the other information required to be fur-
23 nished under this section 104 (e), insofar as ainy






28

26
1 such actuarial assumptions are rnot included in the

2 most recent actuarial report,

3 (B) (i) if there is no such report, or (ii) if
4 any of the actuarial assumptions employed in, the

5 annual report differ from those in the most recent

6 actuarial report, or (iii) if different actuarial as-
7 sumptions are used -for computing contributions or
8 payments than are used for any other purpose, a
9 statement explaining same,

10 (7) a statement showing the nrimber of participants
11 who terminated service under the plan during the year,
12 whether or not they retain any nonforfeitable rights,

33 their length of service by category, and
14 (8) such other information as may be necessary to
15 fully and fairly disclose all pertinent facts.

16 All statements required pursuant to this subsection (104

37 (e)) shall be certified as being in conformity with accepted
18 principles of actuarial practice by an actuary who is a mem-
19 her of the American Academy of Actuaries or who meets

20 qualifications as the Secretary may establish by regulation.
21 Such certification shall be made a part of the annual report.

22 PUBLICATION
23 SEC. 105. (a) The administrator of any employee bene-
24 fit plan subject to this Act shall file with the Secretary a
25 cpy of the plan description and each annual report. The Sec-





29

27

1 retary shall make copies of such descriptions and annual re-

2 ports available for inspection in the public document room
3 of the )epartment of Laboi. The Secretary may reject any
4 filing under this section after notice, hearing and determina-
5 tion by theI Secretary that such filillg is ilncomplet for the

6 ipurpose! of this title.
7 (b) Publication of the plan descriptions and annual

8 reports required by the Act shall be made to participants
9 and beneficiaries of the particular plan as follows:

10 (1) the administrator shall furnish to each plan
11 participant or his or her beneficiaries a copy of the plan

12 description (including all amenlidments or modifications
13 thereto) ;

14 (2) the administrator shall make copies of the latest

15 annual report and the bargaining agreement, trust agree-
16 ment, contract, or other instrument under which the plan
17 was established and is operated available for examina-

18 tion by any plan participant or beneficiary in the prin-
19 cipal office of the administrator and in such other places
20 as may be necessary to fully and fairly disclose all per-
21 tinent facts to all participants;

22 (3) the administrator shall furnish to each plan
23 participant; or their beneficiaries a copy of the state-
24 ments and schedules described in section 104 (b) (2)
25 (A), (B), (C) and section 104 (e) (5) and such other






30

28

1 material as is necessary to fairly summarize the latest
2 annual report; and
3 (4) the administrator shall, upon written request
4 of any participant or beneficiary, furnish a complete copy

5 of the latest annual report, the bargaining agreement,

6 trust agreement, contract, or other instruments under
7 which the plan is established and operated. The adminis-
8 trator may make a reasonable change to cover the cost

9 of furnishing such complete copies.

10 (c) The administrator of an employee pension benefit
11 plan shall furnish to any plan participant at least once each

12 year a statement indicating (1) whether or not such person
13 has a nonforfeitable right to receive a benefit, and (2) the
14 nonforfeitable benefits, if any, which have accrued or the
15 earliest date on which benefits will become nonforfeitable.
16 (d) Upon the termination of service under the plan of a

17 participant having a right to a benefit payable at a later
18 date, the plan administrator shall furnish to the participant
19 or his surviving beneficiary a statement setting forth his
20 rights and privileges under the plan. The statement shall be
21 in such form, be furnished and filed in such manner, and
22 shall contain such information, including but not limited to
23 the nature and amount of benefits to which he is entitled, the
24 name and address of the entity responsible for payment, the
25 date when paynent shall begin and the procedure for filing






31

29

1 his claim, as the Secretary may by regulation prescribe. The

2 administrator shall, upon termination of a vested participant's
3 employment prior to regular retirement age, report to the
4 Secretary of Health, Education, and Welfare such informa-
5 tion as the Secretary of Health, Education, and Welfare

6 may prescribe by regulation to facilitate notification of vested
7 rights to such participants or their beneficiaries. The Secre-

8 tary of Labor shall reimburse the Secretary of Health,

9 Education, and Welfare for use by the latter of personnel
10 and facilities in the performance of his functions under this
11 subsection.

12 ENFORCEMENT

13 SEC. 106. (a) Any person who intentionally violates
14 any provision of section 103, 104, 105, 106, 107, or 110
15 of this ,title shall be fined not more than $1,000, or impris-
16 oned not more than six months, or both. Any person

17 who intentionally violates any provision of section 108 of this

18 title shall be fined not more than $5,000 or imprisoned not
19 more than two years, or both. Any person who intentionally
20 violates any provision of section 111 (b) (2) shall be fined
21 not more than $10,000, or imprisoned not more than five

22 years, or both.

23 (b) Any plan administrator who fails or refuses to com-
24 ply with a request as provided in section 105 within thirty

25 days (unless such failure or refusal results from matters


25-028 0 76 vol. 1 6






32

30

1 reasonably beyond the control of the administrator) by mail-
2 ing the material requested to the last known address of the

3 requesting participant or beneficiary may in the court's dis-
4 cretion be personally liable to such participant or beneficiary
5 in the amount of up to $50 a day from the date of such fail-

(i ure or refusal, and the court may in its discretion order such

7 other relief as it deems proper.

8 (c) The Secretary shall have power in order to deter-

9 mine whether any person has violated or is about to violate

10 any provision of this title, to make an investigation and in
11 connection therewith he may require the filing or supporting

12 schedules of the financial information required to be furnished

13 under section 103 or 104 of this title and may enter such
14 places, inspect such records and accounts, and question
15 such persons as he may deem necessary to enable him to

16 determine the facts relative to such investigation. The Sec-

17 retary may report to interested persons or officials concerning

18 the facts required to be shown in any report required by this
19 title and concerning the reasons for failure or refusal to file

20 such a report or any other matter which le deems to be
21 appropriate as a result of such an investigation.

22 (d) For the purposes of any investigation provided
23 for in this title, the provisions of sections 9 and 10 (relating
24 to the attendance of witnesses and the production of books,
25 records, and documents) of the Federal Trade Commission





33

31
1 Act, of SeptebeLr 16, 19 14, as amended (15 U.S.C1. 49,

2 50), are hcrebly imade applicable to the jurisdiction, powers,
and duties of the Secretary or any officers designated by him.

4 (e) Civil actions under this title may He be brought-

5 (1) by a participant or beneficiary-
6 (A) for the relief provided for in section 106

7 (h), or
8 (B) to recover benefits due him under the

9 terms of his plan or to clarify his rights to future
10 benefits utinder the terms of the plan;

11 (2) by the Secretary, or by a participant, bene-
12 liciary or fiduciary for appropriate relief under section

13 111 (d) ; or
14 (3) by the Secretary, to enjoin any act or practice

15 which appears to lim to violate any provision of this

16 title.

17 (f) (1) An employee benefit plan may sue or be sued

18 as an entity. Service of sununons, subpena, or other legal
19 process of a co'(urt upon trustee or administrator of an em-
o20 pl)yee Ieclilit plan iii his capacity as such shall constitute

21 service upon the employee benefit plan.

22 (2) Any money judgment against an employee benefit,
23 plan shall be enforceable only against a plan as an entity
24 and shall not be enforceable against any other person,






34

32

1 unless liability against such person is established in his
2 individual capacity under this title.

3 (g) (l) Civil actions under this title brought by a
4 participalnt or beneficiary my be brought in any court of
5 competent jurisdiction, State or Federal.

6 (2) Where such an action is brought in a district court
7 of the United States, it may be brought in the district where

8 the plan is administered, where the breach took place, or
9 where a defendant resides or may be found, and process

10 may be served in any other district where a defendant
11 resides or may be found.

12 (3) Notwithstanding any other law, the Secretary shall
13 have the right to remove an action from a State court to a
14 district court of the United States, if the action is one seek-

15 ing relief of the kind the Secretary is authorized to sue for
16 herein. Any such removal shall be prior to the trial of the

17 action and shall be to a district court where the Secretary

18 could have initiated such an action.

19 (ih) The district courts of the United States shall have
20 jurisdiction, without lrespect to the amount in controversy,
21 to grant the relief provided for in section 106 (c) (2) and

22 (3) in any action brought by the Secretary. In any action
23 brought under section 106 (e) by a participant or beneficiary,
24 the jurisdiction of the district court shall be subject to the





35

33

1 requirements contained in section 1331 of title 28, United

2 States Code.
3 (i) (1) In any action by a participant or beneficiary,
4 the court in its discretion may allow a reasonable attorney's

5 fee and costs of action to either party.

6 (2) Except as to actions brought pursuant to section
7 106 (e) (1) (B) and actions brought by the Secretary pur-

8 suant to section 106 (e) (2) and (3), no action shall be
9 brought except upon leave of the court obtained upon veri-

10 fled application and for good cause shown, which application
11 may be made ex parte.

12 (3) A copy of the complaint in any action by a
13 participant or beneficiary shall be served upon the Secretary
14 by certified mail who shall have the right, in his discretion,
15 to intervene in the action.

16 (j) In order to avoid unnecessary expense and duplica-
17 tion of functions among Government agencies, the Secretary

18 shall make such arrangements or agreements for cooperation
19 or mutual assistance in the performance of his functions under
20 this title and the functions of any such agency as he may find
21 to be practicable and consistent with law. The Secretary may
22 utilize the facilities or services of any department, agency, or
23 establishment of the United States or of any State or political






36

34

1 subdivision of a State, including the services of any of its

2 elmployees, wilh the lawful consent of such department,

a agency, or establishment; and each department, agency, or

4 establishment of the United States is authorized and directed

5 to cooperate with the Secretary and, to the extent permitted

6 by law, to provide such information and facilities as he may

7 request for his assistance in the performance of his functions

8 under this title. However, the Secretary shall not delegate
9 any of his responsibilities under the Act. The Secretary shall

10 immediately forward to the Attorney General or his repre-

11 sentative any information coming to his attention in the

12 course of the administration of this Act which may warrant
1: consideration for criminal prosecution under the provisions

14 of this title or other Federal law.

15 REPORTS MADE PUBLIC INFORMATION

(16 SE. 107. The contents of the descriptions and regular

17 annual reports filed with the Secretary pursuant to this

18 title shall be public information, and the Secretary, where

19 to do so wi'ould protect the interests of participants or

20 Ilneiciciaries of a plan, may publish any such information

21 and data. The Secretary may use the information and data

22 for statistical and research purposes, and compile and publish

23 such studies, analyses, reports, and surveys based thereon
24 as ie miay dcee appropriate.






37

35

1 RETENTION OF R1I~leORDS

2 Sec. 108. Every person required to file any description
3 or report or to certify any information therefor under this
4 Act shall maintain records on the matters of which dis-

5 closure is required which will provide in sufficient detail the

6 necessary basic information and data from which the docu-

7 ments thus required may be verified, explained, or clarified,

8 and checked for accuracy and completeness, and shall in-
9 clude vouchers, worksheets, receipts, and applicable resolu-

10 tions, and shall keep such records available for examination

11 for a period of not less than six years after the filing of the

12 documents based on the information which they contain.

13 I IELIANCE ON ADMINISTRATIVE INTERPRETATIONS AND
14 FORMS

15 SEC. 109. Ill any criminal action or plro'ceeding under

16 section 106 based on any act or omlission in alleged viola-

17 tion of sections 102 through 110 of this Act, no person

18 shall be subject to any liability or punislhmnnt for or on

19 acclounit of the failure of such person to (1) comply with
20 such provisions of this title if he i)le#ads and proves that

21 the act or omission complained of was in good faith, in

22 conformity with, and in reliance on any written interpreta-

23 tion or opinion of the Secretary, or (2) publish and file
24 any information required by any provision of this title if






38

36

1 he pleads and proves that he published and filed such in-

2 formation in good faith, and in conformity with the rul-
3 ings and regulations of the Secretary issued under this title

4 regarding the filing of such reports. Such a defense, if estab-

5 lished, shall- be a bar to the action or proceeding, notwith-

6 standing that (A) after such act or omission, such inter-

7 pretation or opinion is modified or rescinded or is determined
8 by judicial authority to be invalid or of no legal effect, or
9 (B) after publishing or filing the description and annual

10 reports, such publication or filing is determined by judicial
11 authority not to be in conformity with the requirements of

12 this title.

13 BONDING
.4 SEC. 110. (a) Every person subject to the provisions
15 of section 111 of this title and every person who handles

16 funds or other property of an employee benefit plan shall be

17 bonded as herein provided; except that, where such plan is

18 one under which the only assets from which benefits are paid
19 are the general assets of a union or of an employer, the ad-

20 ministrator, officers, and employees of such plan shall be
21 exempt from the bonding requirements of this section. The

22 amount of such bond shall be'fixed at the beginning of each

23 calendar, policy, or other fiscal year, as the case may be,
24 which constitutes the reporting year of such plan. Such

25 amount shall be not less than 10 per centum of the amount






39

37

1 of funds handled, determined as herein provided, except that

2 any such bond shall be in at least the amount of $1,000 and
3 no such bond shall be required in an amount in excess of
4 $500,000: Provided, That the Secretary, after due notice

5 and opportunity for hearing to all interested parties, and after

6 consideration of the record, may prescribe an anmolut in
7 excess of $500,000, which in no event shall exceed 10 per

8 centum of the funds handled. For purposes of fixing the
9 amount of such bond, the amount of funds handled shall be

10 determined by the funds handled by the person, group, or

11 class to be covered by such bond and by their predecessor or

12 predecessors, if any, during the preceding reporting year, or
13 if the plan has no preceding reporting year, the amount of
14 funds to be handled during the current reporting year by such
15 person, group, or class, estimated as provided in regulations
16 of the Secretary. Such bond shall provide protection to the

17 plan against loss by reason of acts of fraud or dishonesty on

18 the part of such administrator, officer, or employee, directly
19 or through connivance with others. Any bond shall have as
20 surety thereon a corporate surety company which is an ac-

21 ceptable surety on Federal bonds under authority granted by

22 the Secretary of the Treasury pursuant to the Act of July 30,
23 1947 (6 U.S.C. 6-13). Any bond shall be in a form
24 or of a type approved by the Secretary, including individual






40

38

1 bonds or schedule or blanket forms of bonds which cover a

2 group or class.

3 (b) It shall be unlawful for any administrator, officer,

4 or employee to whom subsection (a) applies, to receive,

5 handle, disburse, or otherwise exercise custody or control

6 of any of the funds or other property of any employee

7 benefit plan, without being bonded as required by subsec-

8 tion (a) and it shall be unlawful for any administrator,

9 officer, or employee of such plan, or any other person having

10 authority to direct the performance of such functions, to

11 permit such functions, or any of them, to be performed

12 by any such person, with respect to whom the requirements

13 of subsection (a) have not been met.

14 (c) It shall be unlawful for any person to procure

15 any bond required by subsection (a) from any surety or

10 other company or through any agent or broker in whose

17 busiless operations such plan or any party in interest in

18 such plan has any control or significant financial interest,
19 direct or indirect.

20 (d) Nothing in any other provision of law shall require

21 any person, required to be bonded as provided in subsection

22 (a) because he handles funds or other property of an em-

23 pl'ye benefit plan, to be bonded insofar as the handling

24 by such person of the funds or other property of such plan
25 is concerned.





41

39

1 (e) The Secretary shall from time to time issue such

2 regulations as may be necessary to carry out the provisions
3 of this section. When, in the opinion of the Secretary, the

4 administrator of a plan offers adequate evidence of the
5 financial responsibility of the plan, or that other bonding

6 requirements would provide adequate protection of the
7 beneficiaries and participants, he may exempt such plan

8 from the requirements of this section.
9 FIDUGIARY RESPONSIBILITY

10 : SEC. 111. (a) (1) Every employee benefit plan shall be
11 deemed to be a trust. The assets of such a fund shall never

12 inure to the benefit of any employer and shall be held for

13 the exclusive purposes of (A) providing benefits to partici-
14 pants in the plan and their beneficiaries and (B) defraying
15 reasonable expenses of administering the plan; except with

16 respect to contributions which are made by an employer as
17 a mistake of fact or which are conditioned upon Internal

18 Revenue Service approval of the deduction of the contribu-
19 tion in a. case in which the deduction is not approved.

20 (2) Every employee benefit plan shall be established
21 pursuant to a written plan. Any employee pension benefit

22- plan shall comprise a separate trust which provides that the
23 funds held therein cannot be used for any purpose other than
24 paying retirement benefits to its participants or beneficiaries,
25 by purchase of insurance or annuity contracts or otherwise.






42

40

1 (b) (1) A fiduciary shall discharge his duties with re-
2 spect to a plan solely in the interest of the participants and
3 beneficiaries and-
4 (A) for the exclusive purpose of:

5 (i) providing benefits to participants and their
6 beneficiaries and

7 (ii) defraying reasonable expenses of adminis-
8 tering the plan;

9 (B) with the care, skill, prudence, and diligence
10 under the circumstances then prevailing that a prudent
11 man acting in a like capacity and familiar with such mat-
12 ters would use in the conduct of an enterprise of a like
13 character and with like aims;
14 (C) by diversifying the investments so as to mini-
15 mize the risk of large losses unless under the circum-
16 stances it is prudent not to do so and;
17 (D) in accordance with the documents and instru-

18 ments governing the fund insofar as is consistent with
19 this Act.
20 (2) Except as permitted under section 111 (a) (1) a
21 fiduciary shall not-
22 (A) deal with such fund for his own account,
23 (B) in his individual or any other capacity act in

24 any transacion involving the fund on behalf of a party





43

41

1 whose interests are adverse to the interests of the plan
2 or the interest of its participants or beneficiaries,
3 (C) receive any consideration for his own personal
4 account from any party dealing with such fund in con-

5 nection with a transaction involving the fund,

6 (D) permit the transfer of any property of the fund
7 to or its use by any person known to be a party in

8 interest for less than adequate consideration, or

9 (E) permit the acquisition of any property from
10 or services by any person known ,to be a party in
11 interest for more than adequate consideration.

12 (c) Nothing in this section shall be construed to pro-
13 hibit any fiduciary from-
14 (1) receiving any benefit to which he may be
15 entitled as a participant or beneficiary in the plan under
16 which the fund was established;
17 (2) receiving any reasonable compensation for serv-

18 ices rendered, or for the reimbursement of expenses prop-
19 erly and actually incurred, in the performance of his
20 duties with the fund; except that no person so serving
21 who already receive full-time pay from an employer or

22 an association of employers, whose employees are partic-
23 ipants in the plan under which the fund was established,
24 or from an employee organization whose members are






44

42

1 participants in such plan shall receive compensation
2 from such fund, except for reimbursement of expenses
3 properly and actually incurred and not otherwise reim-

4 bursed; or

5 (3) serving in such position in addition to being an

6 officer, employee, agent, or other representative of a

7 party in interest.
8 (d) Any person who is a fiduciary with respect to a

9 plan who breaches any of the responsibilities, obligations, or
10 duties imposed upon fiduciaries by this title shall be personally

11 liable to make good to such plan any losses to the fund result-
12 ing from each breach, and to restore to such plan any profits of

13 such fiduciary which have been made through use of assets of
14 the fund by the fiduciary and shall be subject to such other

15 equitable or remedial relief as the court may deem appropriate,

16 including removal of such fiduciary. A fiduciary may also

17 be removed for a violation of section 112 of this title.

18 (e) Each employee benefit plan shall contain specific

19 provisions for the disposition of its fund assets upon termina-

20 tion. In the event of termination, whether under the ex-

21 pressed terms of the plan or otherwise, the assets of the fund

shall never inure to the benefit of any employer and shall be
held for the exclusive purposes of (1) providing benefits to.
2 participants in the plan and their beneficiaries and (2) de-
25 fraying reasonable expenses of administering the plan, except

6 as otherwise provided in section 111 (a) (1).
,' a






45

43
1 (f) When an employee benefit fund is held by and un-
2 der the management and control of two or more fiduciaries
3 each shall participate in the administration of the trust and
4 shall use reasonable care to prevent a cofiduciary from com-

5 mitting a breach, notwithstanding language to the contrary
6 in the trust agreement: Provided, however, That nothing
7 herein shall preclude any agreement authorized by the trust

8 instrument allocating specific responsibilities, obligations, or
9 duties among fiduciaries in which event such a fiduciary to
10 whom certain responsibilities, obligations, or duties have not
11 been allocated shall not be liable either individually or as a
12 fiduciary for any loss resulting to the fund arising from the
13 acts or omiftions to act on the part of another fiduciary to
14 whom such responsibilities, obligations, or duties have been

15 allocated: Provided, That such fiduciary did not actually par-
16 ticipate in and did not have knowledge of the activities consti-
17 tuting a breach of the specific responsibilities, obligations, or
18 duties allocated to any other fiduciary.

19 (g) No fiduciary shall be liable for a violation of this
20 Act committed before he became a fiduciary or after he
21 ceased to be a fiduciary.

22 (h) Except for situations covered in subsection (f) of
2 this section, any provision in an agreement or instrument

24 which purports to relieve a fiduciary from responsibility or
25 liability for any responsibility, obligation, or duty under this
26 title shall be void as against public policy.






46

44

1 (i) No action may be commenced under subsection (d)
2 with respect to a fiduciary's breach of any responsibility, duty,
3 or obligation, or with respect to a violation of section 112,

4 after the earlier of-

5 (1) six years after the date of the breach or viola-

6 tion, or,

7 (2) Three years after the earliest date (A) on
8 which the plaintiff had actual knowledge of the breach

9 or violation, or (B) on which a report from which he

10 could reasonably be expected to have obtained knowl-
11 edge of such breach or violation was filed with the Sec-

12 retary under this title.

13 PROHIBITION AGAINST CERTAIN PERSONS HOLDING
31i OFFICE

15 SEC. 112. (a) No person who has been convicted of,
16 or has been imprisoned as a result of his conviction of, rob-

17 bery, bribery, extortion, embezzlement, fraud, grand larceny,

18 any crime described in section 9 (a) (1) of the Investment

19 Company Act of 1940 (15 U.S.C. 80a-9 (a) (1)), or a
20 violation of any provision of this Act, or a violation of section
21 302 of the Labor Management Relations Act, 1947 (29

22 U.S.C. 186), or a violation of chapter 63 of title 18, United

23 States Code, or a violation of section 874, 1027, 1503, 1505,
24 1506, 1510, 1951, or 1954 of title 18, United States Code,
25 or a violation of the Labor-Management Reporting and.Dis-





47

45

1 closure Act of 1959 (29 U.S.C. 401), or conspiracy to

2 commit any such crimes or attempt to commit any such
3 crimes, or a crime in which any of the foregoing crimes is

4 an element, shall serve or be permitted to serve-

15 (1) as an administrator, officer, trustee, custodian,
G counsel, agent, or employee of any employee welfare

7 or pension benefit plan, or
8 (2) as a consultant to any employee welfare or

19 pension benefit plan,
II during or for five years after such conviction or after the

11 end of such imprisonment, whichever is the later, unless

12 prior to the end of such five-year period, in the case of a
1:w person so convicted or imprisoned, (A) his citizenship
14 rights, having been revoked as a result of such conviction,

15 have been fully restored, or (B) the Board of Parole of

16 the United States Department of Justice determines that
17 such person's service in any capacity referred to in clause

18 (1) or (2) would not be contrary to the purposes of this
19 Act. Prior to making any such determination .the Board
20 shall hold an administrative hearing and shall give notice
21 of such proceeding by certified mail to the State, county,

22 and Federal prosecting officials in the jurisdiction or juris-

23 dictions in which such person was convicted. The Board's

24 determination in any such proceeding shall be final. No





25-028 0 76 vol. 1 7






48

46
1 person shall knowingly permit any other person to serve

2 in any capacity referred to in clause (1) or (2) in violation
3 of this subsection. Notwithstanding the preceding provi-

4 sions of this subsection, no corporation or partnership will

5 be precluded from acting as an administrator, trustee, cus-
6 todian, counsel, agent, or employee of any employee benefit

7 plan or as a consultant to any employee, welfare, or pension

8 benefit plan without a notice, hearing, and determination

9 by the Secretary that such service would be inconsistent
10 with the intention of this section.

11 (b) Any person who intentionally violates this section

12 shall be fined not more than $10,000 or imprisoned for not

13 more than one year, or both.
14 (c) For the purposes of this section, any person shall be
15 deemed to have been "convicted" and under the disability of

16 "conviction" from the date of the judgment of the trial court
17 or the date of the final sustaining of such judgment on appeal,

18 whichever is the later event, regardless of whether such con-
19 viction occurred before or after the date of enactment of this

20 section.
21 (d) For the purposes of this section, the term "consult-

22 ant" means any person who, for compensation, advises or

23 represents an employee benefit plan or who provides other
24 assistance to such plan, concerning the establishment of

25 operation of such plan.