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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3 v. : ; 24 cm.
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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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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 )
non-fiction   ( marcgt )

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.
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aleph - 025828421
oclc - 02349652
lccn - 77600583 //r863
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lcc - KF3512.A315 A15 1976
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AA00024841:00002

Full Text










94th Congress COMMITTEE PRINT
2d Session





LEGISLATIVE HISTORY

OF THE

EMPLOYEE RETIREMENT INCOME

SECURITY ACT'OF 1974


Public Law 93-406






PREPARED BY THE

SUBCOMMITTEE ON LABOR

OF TIM

COMMITTEE ON LABOR AND

PUBLIC WELFARE

UNITED STATES SENATE









APRIL 1976


Volume II



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


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























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, JR., 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 ELISBURG, 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 billion 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 unregulated. 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 future growth and development.
Implementation of the, ERISA standards will demand an effective
administration with a unique understanding of the impact of its reqtiirements. 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 indexes were prepared. HARRISONA. WiLLTAms, r.,

Chairman.





















ACKNOWLEDGMENT


The indexes for this legislative history of the Employee Retirement 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 cont ributed 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 indexes; Bruce M. Leet, who helped to plan and start the project; Richard T. Wood, who kept a chronicle of pension reform legislation; and John S. Hunter, who guided the project.

HARRusox A. WILLIAMS, Jr., Chairman.
MV


















Digitized by the Internet Archive
in 2013












http://archive.org/details/lehisto00unit
















CONTENTS


?age
Foreword ---------------------------------------------------------- III
Acknowledgment---------------------------------------------------- V
Index------------------------------------------------------------- XI

VOLUME I
January 3, 1973-House:I
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----------------------W92
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 ------------------------------------------------------ 19OL-202
Introductory remarks of Mr. Javits ----------------------------- 203-206
Introductory remarks of Mr. Ribicoff------------------------------ 207
March 13, 1973-Senate:
Introductory remarks of Mr. Bentsen on 5. 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, unanimous 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 5. 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
(VII)







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, 19,73 -------------------- 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. 479 (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. 42900, Text of, as reported----------------------------------- 1570
Senate Report 93-394------------------------------------------ 1572

VOLUME II
September 18, 1973-Senate:
Floor debate on 5. 4 --------------------------------------- 1579-1670
Amendments to S. 4:
No. 503 (by Mr. Curtis) ------------------------------------- 1671
No. 504 (by Mr. Buckley to numbered Amendment No. 497 proposed by Mr. Nelson-------------------------------------- 1674
No. 505 (by Mr. Nelson) ------------------------------------- 1675
No. 506 (by Mr. Nelson)------------------------------------ 16716
No. 507 (by Mr. Tunney) ------------------------------------ 1678
No. 508 (by Mr. Hartke to numbered Amendment No. 496 proposed
by Mr. Nelson ------------------------------------------- 1680
Analysis of Anmendment No. 496 to S. 4 ------------------------ 1718-1729
September 19, 1973-Senate:
Floor debate on S. 4 -------------------------------------- 1732-1882
H.R. 4200, text of, as passed by Senate ---------------------------- 1883
October 2, 1973-House:I
11.R. 2, text of, as reported with amendments---------------------- 2181
House Report 93-533------------------------------------------ 2348
February 4, 1974-House:
H.R. 12481 as submitted and as reported February 5, 1974 ---------- 2393
House Report 93-7-79 ------------------------------------------ 2584
F ebruary 20, 1974-House:
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






TX

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 IIl
February 28, 1974-House :
Floor debate on H.R. 2 ------------------------------------3505-3519
Canceled companies with pension agreements, 1973 (prepared. by Insurance, 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 corrections 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 Version of H.R. 2-To Provide for Pension Reform, committee prints prepared 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 Savings 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















INDEX


EXPLANATORY No'rEs FOR. USING TMl 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 explanatory 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 underlying 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 necessary to encompass the wide range of proposals, discussions, and modifications leading to the provisions enact ed 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)






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 s i clarity to the final law. In addition, prints in committee reports of the Welfare and Pension Plans Disclosure Act as it would be.e'hahged are not indexed.
While certain substantive amendments we 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 related 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 references 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 prec ding 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 ERTSA 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
c' index, etc.; specific authority to issue regulation's regarding Vestin '
the filing of annual reports may be found within the page references
-given under "Annual report or return-filing requirements" in the ReT)orting and Disclosure index.
6. The index beading "Previous law'*, refers to discussions or statements about the status of law before ERISA. Therefore., the refer-






XII

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


















LIST OF DO-CUMENTS
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 ---------------------------------------- 587A65
(9) H.R. 9824 as Introduced ------------------------------------- 686-777
(10) S. 1179 as Reported ------------------------------------------ 7W1062
(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. 129M as Introduced 2 ----------------------------------- 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 Congres8ional
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 ------------------------------ 359"896
(28) H.R. 2 as Passed by the House of Representatives ------------- 3898-4250
(29) Conference Report on H.R. 2 3 ------------------------------- 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

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 ------------------------------------------------------ 12,
285, 111% 2408-W, 2648-49, 2939-40, 3180-81, 3327-29, 3911, 407273,4540,4843-44,4912
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,
408994104,4551,4876,4921
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, 2250-51t 2452-53, 2982-83, 3331, 3743, 3907-08, 4116-17,
4842t4934-35
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 parficipant ------------------------------------------------ 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, 29719-81, 3167, 3212, X-321-22, 3344-45, 3914-15, 4113-15,
4845,4933-34
Class year plan ----------------------------------------------------- 1199
238, 511, 846, 1117, 2420, 2653, 295"1, 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,
3653-54,3T99,4104--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 ------------------ 2454,298493915,4079-80,4118,4845,4935
Defined contribution plan ------------------------------- 2454t29840411804935
(XV)







XVI

DEFINITION S-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, 10009 15011, 3727
Eligible individual account plan -------------------------------------- 4888
Employee ------------------ 8, 70, 98, 490, 601, 691, 2248, 2357, 3306f 39051 4841
Employee accrued benefit ----------------------------- 330-31, 839-41, 3621-24
Employee benefit fund (See also Fund) ----------------- --------------- 7s,
147,493,542,601,616,959,1413-14,2357-59,3308,3744 Employee benefit plan ------------------------------------------------- 6-7,
147 282? 284, 542, 689-90, 958, 14139 2247, 3T43, 3904, 4840 Employee organization ---------- 7-8, 71, 99, 490-91, 690, 9609 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, 489-909 691, 905, 963, 1057, 1360, 2248, 3369, 3905, 4841 Employer-group ---------------------------------- 970-71, 14501 37819 3790-91
Employer real property ----------------------------------------------- 4888
Employer security ---------------------------------------------------- 4888
Enrolled actuary ------------------------------ 1487, 3924-25, 4170, 4850, D-010
Excess benefit plan --------------------------------------------------- 4845
Excess contributions ----------------------- 2544-45, 2975-76, 4186-88, 4973-74
Experience deficiency ------------------------ 74, 102, 243, 494, 602, 10731 1612
Experience loss --------------------------------------------------- 2661, 3194
Fiduciary ----------------------------------------------------------- 12-13,
150-521 286, 372, 546, 614-159 695, 962, 9T5-76, 1171, 1417t 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-eontribution multiemployer plan --------------------------------- 76-77
Full funding limitation ----------------------------------------------- 1128,
243lt2961-62,3202,4004-05,4195-96,4879,4923-24 Fully funded -------------------------------------------- 74, 101-02, 493, 602
Fund (Se6 also Employee benefit fund) ------------------ 71, 99, 4911, 542, 3306
Fund ing ---------------------------- ------- 74, 102, 494, 595, 1620 2354, 3379
Government plan ------------------------ 2449, 2979, 3914, 411.3, 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 ---------------------------------------- 73, 101, 493
Initial unfunded past service liability -------------------------------- 3639-40
Insurer ------------------------------------------------------------- 4882
Interested party ------------------------------------------------- 1386, 5030
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
Alarket value --------------------------------- 13, 150, 286, 545, 1416-179 3747
Market obligation, -------------------------------------------------- 4889-90
Member of family (See also Relative) -------------------- 977, 1470, 3797, 4983
Money purchase plan ------------------------ 72, 100, 492, 9089 1372, 3702, 4559
Month ------------------------------------------------------- 833,1284,3613




-Iqqq



xVU

DEFINITIONS--Continued,
Pages in
Legislative History
Multiemployer plan --------------------------------------------------- 104,
496, 602, &94-95, 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, 11555, 1397, 37269 4643, 5036
Non-basic benefits, ------------------------------------------------ 4633,5011
Nonforfeitable -------------------------------------- 220-1-52,3306,3909,4843
Nonforfeitable pension benefit --------------- 12, 148, 285, 544, 695, 1414-15, 3745
Nonforfeitable, right --------------------------- 75, 103, 494--95, 602, 2357, 3306
Normal retirement age (Sec also Regular retirement age) -------------- 760
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, 989 490, 691, 877, 959--60, 1342, 1483-84, 1840, 2248, 3671-72,
3905,4841
Partnerships; trust ---------------------------------- 976-77, 14709 3797, 4983
Party in interest ----------------------------------------------------- 9-10,
151-52, 282--83, 370, 546-47, 692-93, 956, 973-75, 1171, 1417-18, 1466-68, 224"0, 2256-57, 3306, 3748-499 3793-96, 3797, 3906-07,
3910-11, 4590, 4841-42, 4981-82
Pension benefit ---------------------------- 76, 103-04, 149, 495, 545, 1416, 3745
Pension plan (Sce 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 underfunding ---------------------------------------- 4038
Pro rata share -------------------------------------------- 913-14, 1376, 3705
Professional individuals ---------------------------------------------- 5023
Professional service employer ----------------------------------------- 5CO-3
Profit-sharing plan --------------------------------------------------- 1338
Profit-sharing retirement plan ---------- 72, 90-100, 491-92, 601, 2357, 3306, 3668
Prohibited transaction-- 369,40,965-67, 116a-65,1460-619 1614,1728, 3787-88, 4978 Proprietary employee --------------- 930-31,1151,1189,15,33,1707,1778,3758-59
Qualified actuary ----------------------------------------------------- 2265
Qualified employer real property ------------------------------- 4584-85,4889
Qualified employer security ---------------------------------- 45849 4889, 4983
Qualified insurance carrier ------------------ 77, 1055, 496-97, 877, 1342-43, 36T1
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, 30213, 4849
Registered plan ------------------------------------------------- 72,100,492
Regular retirement age (See al8o Normal retirement age) ------ 14, 698, 2255-56 Regular retirement benefit (Scc also Normal retirement benefit) -------- 13, 695,2252,3911
Relative (See also Member of family) --------------------------------- 10,
146, 283, 541, 693, 1412. 2250, K43, 39071 4842 Retirement plan (Sec aTso Pension plan) -------------------------- 1438,3768
Security ------------------------------------------------------------- 12,
149--50, 286, 544-45, 695, 1416, 2252, 3 746-4 7, 3909-10




25-028 0-76-2 Vol. 2







XV M

DEFINITIONS-Continued
Pages in
Legislative History
Separate account ---------------------------------------------------- lip
147-48, 2849 542-43, 694, 959p 962--63t 1414v 1465-661 2251v 3744,
3792-93,3908,4842
Shareholder employee ----------------------------------------- 2518, 3048-49
Special payment --------------------------------------------- 75, 1&2,-W, 494
State ------------------------------------------------------------- r- 91
69, 97, 489, 691-92, 877, 960, 2248-49, 2251-55, 3672, 3905-06t 4841Stockholdings --------------------------------------- 976, 1469-70, 3797, 4983
Substantial business hardship ---------------------------------------- 1130,
2435-36, 2669-71, 2965-66, 32069 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, 13589 3687-88, 5010
Substantial owner --------------------------------------- 4029f 4636-37, 5024
Substantial (plan) improvements --------------------------- 1626t 1721
Successor plan ------------------------------------ 1148, 1371, 3700, 4028,5022
Supplementary plan ------------------------------- 3307, 3915-16, 4874, 4940
Target benefit plan ---------------------- 2663-64, 3196, 3335, 3380t 3402, 4551
Taxable period -------------------------------- 370, 977, 1470-71, 3798, 49&3-84
Termination benefit -------------------------------------------------- 2319
Trustee responsibility ------------------------------------------------ 4886
Unaffiliated employers ---------------------------------------- 77,104-05, 496
Unfunded accrued liability ---------------------------------- 2258, 3913, 4844
Unfunded liability ------------------------------------- 73-74, 101, 494, 4712
Unfunded vested liabilities --------------------------------------- 77, 105y 497
Vested liabilities ---------------------- 14, 77, 105, 497, 698, 22569 3911-12, 4844
Vested right (See Nonforfeitable right.), Wage increase index ------------------------------------------------- 3348
Waived funding deficiency -------------------------------------------- 860,
1314,2336,2966,3644t4lOOt4880,4925
Year of credited service ----------------------------------------------- 4026
Year ef participation --------------------------------------------- 486714916
Years of plan participation ------------------------------------------- '237
Year of service ------------------------------------------------------- 833,
838-39, 1285, 1290-91, 1700-03, 2397-981 2408, 2413, 2632-35 2646v 2850-51, 2854-57, 2927-28, 2938, 2943, 3164-65, 3178, 3302, 3319-21t 3613, 3619,91, 3987-88, 3991-94, 4072, 4529-W, 4536; 4860v 4863,
4866,4906,4911











REPORTING AND DISCLOSURE Pages in
Legislative History
Amendments
See:
Plan description, registration, amendments, and documents-updating.
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 als80:
ENFoRCEMENT-Reporting and disclosure requirements--generally.
FUNDING-Funding status reports.
MIsCELLANEOUs-Actuaries-standards and qualifications for. Annual report or return:
Disclosure to participants ------------------------------------- 28-30,
164-66, 299-300, 56"-2, 614, 631, 701, 717-18, 1432-33, 2260, 227577, 2365, 2367, 3298-99, 3377, 3461, 3495-96, 3762, 3764, 3919; 3937,
3939, 4526, 4742, 4753,94813,4847-48, 4856
Filing requirements------------------------------------------- 56--64,
291-99, 540-1, 552-60, 614, 630, 703, 711-16, 105%-57, 1061, 121516, 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 documents-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-disclosure 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, 2T47, 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, 226162, 2366, 3298-99, 3461, 3753-54, 3921-23, 4522-25, 4692, 4742,
4759-60, 4848-49
See also MiscELLAEous-Accountants-standards and qualifications
for.
Form and detail of reports (See Secretary of Labor-form, detail, and inspection 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, 485354
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, 71416, 1421, 2260-61, 2243, 2465-66, 3298-99, 3304-05, 3461, 3495, 375152, 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, 22i3-74, 2219, 2466-68, 2478-80, 2490, 2750, 3009-12, 3282-83, 3299, 3762, 3766-67, 3889, 3895, 3935, 3942, 414346, 4526, 4714, 4767--68, 4854, 4857, 4947-49
Recordkeeping requirements -----------------------------------------37,
108, 720, 2279-80, 2368, 2653-54, 3186, 3300, 3307, 3942-43, 497 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, 3750-5, 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 -0-------------------------------------------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, 495051, 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 ENFORCEMET-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 Laborvariances.)










PARTICIPATION AND VESTING rages 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 rulesrate of current benefit accrual.)
Collective-bargaining plans ------------------------------------------- 55,
335-36, 608, 627, 1 51, 834-35, 874-'9.5, 1042-45, 101 2-4.3, 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, 34i0-61, 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,t4931, 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, 2B396-98, 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, 2398-3000t 3021-22, 3125, 3148, 3187-88, 3240, 3301, 3318, 3331-32, 3497, 3510-16, 3571-72, 3664, 3666, 3981--83, 4132-34, 415556, 4546-47, 4669, 4679, 4681, 4738, 4752, 4756-57, 4-965, 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, 39-19, 46a60, 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, 487i3,4932,4934
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,
4800-011
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, 332021, 3992, 4063-.64, 4530-31, 4751, 4754,55, 4861, 4875, 4906-07, 4941
(XXII)







XX=I

PARTICIPATION AND VESTING-Continued

Participation, basic standards-Continued Pages in
Breadth of coverage : 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.
Maximum age-------------------------------------------------328,
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 -------------55-5, 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
See 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, 2638-39, 2978-79, 3170-71, 3613, 4112-13,
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, 3979-80, 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 CODF-Antidiscrimination rules.
Voluntary coverage ---------------------------------------- 2403-04,
2421, 2606, 2635, 2659, 2933, 2951-52, 3137, 3167, 3192, 3313, 3321-22,
3418, 3972, 4067, 4528, 4874-75, 4908 Previous law:
Participation standards ---------------------------------------- 1070,
1079, 1107, 1109, 1702, 2606, 2619-20, 2631, 3137, 3151, 3163, 3296-W
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 DiscLosuRE-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, 4050-1, 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 MIscEuLANEous-Discrimination based on age,
sex, etc.)
Social Security benefit provisions:
Integration ------------------------------------------------ 1696-97,
1716, 2618, 2656-57, 2758-9, 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 ------------------------------------------- 245455, 2594, 2612, 2654, 2984-85, 312-5, 3143, 3186--87, 3315-16, 3408,
3423-24, 4118-20, 4940
Vesting and benefit accrual, -basic standards:
Breaks in service ---------------------------------------------- 11920, 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-------------------------------------- 33031, 839-40, 1119-20, 2408-409, 2648, 2938-39, 31-80, 3327-28, 3621-24,
4072-73, 4540, 4736-37, 4756,4843-44,4912
Employer contributions, schedules for:
Graded standard ------------------------------------------- 5355, 117-1 8, 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, 177374, 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, 3313414, 3323-24, 3352, 3358, 3370, 3380, 3387-88, 3407, 3419 -20, 347, 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 ----------------------------- 32829, 1088, 1114-15, 2306, -2370, 2405-06, 2409, 2599-2600, 2614, 264849, 293*-36, 2940, 3125-26, 3139, 3175, 3301, 3313, 3323-24, 3352, 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, 4764-650 4776, 4779, 4787, 4792, 4801, 4807, 4812,
4819, 4825, 4830-31, 4862, 4909







XXV

PARTICIPATION AND VTESTING-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-M), 2370, 2405--06, 2409, 2593, 2608, 2642-43, 29,34-36, 2940, 3124, 3139, 3175, 3301, 3313, 3323-24, 3352, 3358, 3370, 338788, 3407, 3420, 3457, 3494-95, 3499, 3620, 3973-75, 3978, 4068-70, 4074, 4543-44, 4660, 4675, 4688, 4695r-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 ---------------------------------------- 99100, 118, 120, 512, 588, 600, 606, 625, 747, 839, 1073, 1088-89, 111516, 1291-92, 1611, 1,6253, 1638-39, 1648, 1718-19, 1810-il, 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----------------------------------------------- 12021, 237, 513, 838-39, 1116, 1289-90, 1822, 2308--09, 2408, 2413-14, 2633, 2646, 2938, 2944, 3164-5, 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, 486, 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, 332"-0,
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.
4912-13
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, 491 3-14
Class year plans --------------------------------------------- 118-19,
23T-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, 295354, 3141, 3190-91, 3422, 4087-88, 4.549, 4739, 4920
Permitted forfeitures, reductions, or suspensions of vested rights---.~ 334-35,
74"91 1117-18, 2407, 2646-48, 2c,36-37, 3178-80, 3326-27, 3397.
3618,9 4070-71, 4538439, 4669-70, 4738, 4772, 4809, 4862. 4869, 490910, 4919
See also:
FUNDNG-Retroactive plan amendments.
Withdrawal of employee contributions.
Plan terminations ------------------------------------------- 846"7,
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, 31891-82.
3302, 3314-15, 3328, 3401, 3421-22, 3514, 3348. 3983-86. 4075-77, 4540-42, 4668-69, 4736-37, 475W, 4762, 47874, 4806, 4865-66, 4914-16
See also Coll ectivNe-bargai ni ng 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, 407 0. 4675. 476.5
See also:
Collective-bargaining plans.
Multieinployer plans.







XXVI

PARTICIPATION AND VESTING-Continued
Pages in
Legislative History Withdrawal of employee contributions -------------------------------- 56,
829, 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, 1137, 1311-13, 1722, 2429-30, 2515-16, 2680, 2683, 2960, 3147, 3214, 3216-18, 3317, 3345, 3427, 3641, 3643, 40)94,
4551-52, 48231,4878
See al8o MiscELLAINEous-Atuaries-actuarial advisory b-oard. Actuaries:
Reports by (See Funding status reports.)
Standards for (See MiiscELL1NEous-Actuaries-standa-rds and quailflea tions for.)
Collective-bargaining plans:
Funding requirements------------------------------------------ 1126,
244"-7, 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, 2977-78t 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 ---------------------------59,2354
Controlled groups of corporations, special rule ---------------------- 2448-49,
2452, 2677-789 2689, 2978-79, 2982, 3209-10, 3221, 4112-13, 4116,
4933
Boost 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, 261314, 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 a180:
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--53, 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)







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, &%4-5 i, 1073, 1090, 1127, 1502, 1520, 1569, 1571-72, 1612, 1626, 1'12l, 1846, 2334-35, :,-3.1, 3125, 3144, 3194--98, 3302, 3316-17, 3334-35, 3381, 3407, 3426-2-1, 35-d9, 4549-50,
4676, 4688, 4696, 4712, 4140, 4157, 44 80, 4801, 48'46-78
General statement--------------- ------------------------- 121-22,
514, 626, 453-55, 1073, 1090, 112-t, 1222, 1307-08, 1602, 1646, 164950, 2313-14, 2361, 2424, 2613, 2662, 2955, 3145, 3195, 3294, 3335, 3371, 3314-1 5, 3J88, 3396, 3424, 3441 -48, 3457-58, 3493, 3583, 3647, 4549-51, 4668, 4725, 4752, 4784-88, 4801-08, 4812, 4820, 4876, 4921
Vested liabilities basis ------------------------- 59-61,t326-27, 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 ------------------------------------------------- 854-7,
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,
492 1-22
Review of----------------------------------------------------- 1126,
1131-32, 2664, 2672-13, 3196-97, 3204, 3339-41t 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, 1722, 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
Se 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, 400"-2, 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, 31208,
3210-11, 3335, 3344, 3647, 4551
Multieinployer 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, 345758, 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, 339596, 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, 266"-7, 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, 400203, 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, 3996-98, 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, 2593, 2604, 2627, 2698-99, 2726-27, 3122-23, 3132, 3143-44, 3193, 3220-21, 3296-97, 3316, 33349 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, 4780t 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-------------------------------------------------- 129-433,
588, 608, 626-27, 764-6, 860-61, 1332, 1603, 1626-27, 1650, 2336, 2354-5, 2371, 2594, 2614-15, 2662, 2670-71, 2966-67, 2984-86, 3125, 3146, 3195-96, 32034M, 3408, 3426, 3457-58, 3644-45, 4100-01, 454951, 4554-55, 467-7, 4880
Secretary of the Treasury:
Exemptions--------------------------------------------------- 242







XXX

FUNDING-Continued
Pages in
Secretary of the Treasury--Continued Legislative History
Variances ------------------------------------------------------ 860,
1074, 1093p 1125-26t 1129-31, 1314-15, 1613, 2435-36, 2594,t 2614, 2662--63, 2669-70, 2965-M, 3125, 3145-46, 319&-96, 3201--04, &3M, 3408, 364.3-44, 4099-4100, 4549-50, 4554s 4677, 4809p 4879-K
4924-295
Social Security and related benefits, changes in (See Experience gains/lossestreatment of certain changes as.) Tax deductibility of contributions:
Alternate minimum funding standard -------------------- 4556--57, 4930-81
Carryover --------------------------- 7 -------------------- ------ 866-67,
1126, 1321-22, 2343-45, 2371, 2671% 2973-75, 3204, 3661-62 4107-09,
4929
General rule ---------------------------------------------------- 382-83,
865-66, 1320-21, 1721, 1872, 2441-43, 2664, 268T48, 2971-73, 3197,
3220, 3650-519 4105-07, 4929, 4932
Maximum deduction --------------------------------------------- 1126,
2443, 2688--89, 2973, 3220-21, 3335, 4107j 455"0, 4928-29 Multiple trusts/plans -------------------------------------------- 383-85,
626, 866-67, 1321, 1663, 2443-45, 2689, 2974-75, 3214, 3651-52, 410809,4930
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 --------------------------------- 2429L-30,
2615, 268"5, 2959--60, 3147, 3216-17, 3309, 3342, 3427, 4002, 409394, 4878, 4923
Bonds and other debt paper -------------------------------------- 2429,
2615, 2685, 2959-60, 3147, 3217, 3345, 3427, 4W2, 4M3-94, 4878, 4923
See also REPORTING AND DiSCLOSURE-A.Ctuarial report, filing requirements.
Variances:
Alternate funding methods --------------------------------------- 327,
764--65, 2329-4311 2671, 298"69 3195, .33399 4041-42, 4.%5, 4676-77
Disclosure ---------------------------- 166-67, 301, 562, 632t 1434t 3764-M
Multiemployer plans --------------------------------------------- 131-32,
524, 608, 627, 860-61, 1074, 1093, 1130-31, 1314-15, 16139 16.9.6, 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, 4554-4%,
4879-80,4924-25
Waiver:
Amendments to plan ----------------------------------------- 131,
524, 627, 1131, 1139, 1315-16, 1333. 2371, 243"7t 2670, 2967, 3202,
3302, 3645, 3662t 4101, 4555-56t 4880, 4925
General rule ----------------------------------------------- 129-30,
24", 522-23, 588, 626-27, 860, 10749 1093, 1125-26, 112"01 131415, 1332-33, 1603, 1613, 1626-27, 1721-22, 2371, 2435-36, 2594, 2614, 2662-63, 2669-71, 2965-.66, 3125, 314.5-46, 3195-96, 3201-.04, 3302, 3408, 3426, 3458, 3643, 366"1, 4099-41000 4549-51t 4654-55, 4677,
4740, 4780, 4802, 4809, 4813, 4879--80, 4924-25
Reasonable conditions to ------------------ 1130, 2670p 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, 1100-1, 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 fiduciary 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 employee 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 (xxxx)







XXXII

FIDUCIARY RESPONSIBILITY-Continued PgsI
Legislative History
Need for- regulation ----------------------------------------------- 597,
615, 1071-72, 1086, 1099, 1162-63, 2351, 2359, 3308, 3311, 3370, 3377,v 3387, 3395, 3516-17, 3581-82, 4657, 4660-Al9 4743, 4795-96, 4803,
4811-12
Plan structure----------------------------------------------------- 41,
169-70, 56.5-66, 616, 632, 724, 1441, 2283--84, 2368, 3300, 3772, 3947,
4561, 4564-65, 4743, 4882-83
Stee also:
Standards for fiduciary conduct-adherence to plan documents.
Trust requirement.
Plans covered ---------------------------------------------------- 14-15
111-13, 152-53, 286-87, 504M-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 holding 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 schedule.
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, 4978-7 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, 1728,4579-80 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, 457,q79, 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, 3789-919 3952-53, 4579, 4892.
4981
Owner-employee, individual retirement accounts, subject to -------- 966-68
1164, 1443-44, 3777, 3787, 3789, 4583, 4607, 4888, 4892-93, 4970.
4979, 4981
Sec also ENFoRcEMENT-Individual retirement accounts, penalties 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,
9i79, 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, 049, 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, 4F84
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


25-028 0-76-3 Vol. 2







XXXIV

FIDUCIARY RESPONSIBILITY-Continued
Pages in
Legislative History Termination of Plan (See TERMINATION INSURANCE-Allocation of assetsrules 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---------------------------------------------1690,
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 -------- 81t 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, 396.1, 4040, 4579-80, 4592, 4651, 4744,
5032-34
Regulations/rules--------------------------------------------- 245,
566-679 1442, 2292, 2296-97, 2373, 3962--63, 4041-42, 45-70, 4744,
4884
Residual assets ----------------------------------------------- 170,
516, 532, 566-67, 738, 973, 1153, 1392, 1441-42, 1466, 2296-97, 235960, 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--. 335-0, 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, 402?, 4635-36, 4678, 4741, 4781, 5023,,5025
'xxxv)








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, 4457-58, 4781, 4802-03,
4808, 4813, 5023-25
Multiple plan situations -------- 912-13, 1150, 1375, 3704, 4028, 4636-37 New plans------------------------------------------------ 82-8a,
138-39, 268, 533, 629, 759, 909, 1150-51, 1373, 1614, 1628, 1723,
2321-22, 2372, 3348, 3529, 3702-03, 402G-281 4636, 4758, 5023
Rationale for --------------------------------- 1094,1 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 ----------------------------------------- 914-159
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, 463738, 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, 4i81, 4819, 5011-12
Borrowing authority-------------------------------------------- 272,
905-06, 1154-55, 1-069-70,, 1725, 3303, 369"-700, 4015-16, 4631,
4678, 4741, 4781, 4808, 5017
Bylaws -----------------265-66, 897-98, 1148, 1362, 3690, 3692, 4013, 5012
Enforcement by (See EINFORCEMENT-Enforcemeut by-insurance corporation.)
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 ----------------------------------- 3348,4037-38, 5021
To Secretary of Labor ---------------------------------- 4087-38







XXXVII

TERMINATION INSURANCE-Continued
Corpora tion-Continued Pages in
Report s-C-ontinued Legislative History
To trustee---------------------------- 831, 1161, 1394-95,3724, 5035
Reports from plan administrators-------------- 938-39, 1404-5,3734, 5039
Tax exemption------------------------------- 898, 1363,3792,4631, 5012
Temporary authority for initial period-------------- 4630, 4649-50, 5015-16
Coverage:
Sde:
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, 3382-8, 4041, 464748, 4678-7~9, 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 ----------------------9044, 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--------------------------------0247,
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, 29326, 2363. 3525-26. 3.58S5.
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
Nonmultlemployer and multiemployer plans, general rule ----------85-86,
142-43t 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, 50136
Partial terminations ------------------- 1399-1400. 3525-26, 3729, 5037
Remaining in business ------------------------ 9329,934-35, 1399, 372S
Rationale for----------------------------------------------- 610,
612, 1094, 1155-57, 1628, 1649, 1873, 29363 Recovery and dispositionof-------------------1
143-44, 538-39, 612, 630, 762, 939, 1156-57, 1397-98, 1405-06, 17226, 2326-27) 2363, 2373, 3526, 3726-27, 3735, 4030-40, 4643-45,
5039-40







XXXVII'

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, 7V2, 931-32, 1395, 2320,--21, 2325, 2361, 2372-73, 3303, 3346, 3348-49, 3382, 4643, 4678-79t 470405, 5036
Maximum limitation (See Benefits guaranteed-maximum limitation.) Mergers, consolidations and transfers of assets (Sec Reportable eventsmergers or consolidations of assets.)
Multiemployer fund, multiemployer trust fund (See Fund (s) guaranty.) Need for insurance program----------------------------------------- 03t
596, 1093-94, 114"-8, 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, Corporation, 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,t1405, 3734, 5039
Report to Corporation ----------------------- 938-39t 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------------------------------------------------ 111-12,
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, 2 372, 3347, 3701,
4023-24, 4637, 5022
Premiums:
Assessments-administrative ---------83, 139, 270, 534, 629, 760, 2322, 2372
See 08so Privilege tax.
As taxes-------------------------------- 1094, 1148, 1154--55, 1724, 4640
Collection ---------------------------- 182, 578, 1148, 4611, 4631-32, 5O0
Dual rates, rationale for ----------------- 608-09, 611, 1095, 1157-58, 2362
Initial rates:
Liabilities base --------------------------------------------- 83t
139-40, 270, 534, 611, 629, 760, 1603, 2322-24, 2362, 2372, 3303,
3347, 3382, 4016-21, 4631-2, 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, 369495, 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, 3382,23397, 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, 1388-89, 3348, 3717-18, 4031, 4640, 5031
Fiduciary standards violations---------------------------------- 1160
Funding standards, failure to meet ------------------------------ 926,
1160,91389, 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 -------84-859 151, 536, 630, 761, 2324, 2372 Establishment of premium rates ------------------------------- 83-84,
139, 534-35, 629-30, 760, 2322-24, 2372, 3529 Examination of corporation------------------------------------ 40374
Member of board of directors------------------------------------ 264,
897, 1094, 1148, 1628, 1649, 1723, 3382, 3390, 4678, 4712, 4741, 475758, 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 eventsnotification 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,t3539, 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-substantial owner restrictions.)
Termination by Corporation:
Appropriate court -----924, 1159-60, 1387-88,3717, 4639-40, 5015, 5028,5030 Decree to terminate ----------919-20,91160, 1383, 3712-13,4639-40, 5028-29
Determination ---------------- 918-19, 1159, 1381-82, 3711, 4034t,4639, 5028
Effect of other pending actions ---------923, 1160, 1386-7, 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, 3.719, 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, 5029"3
Report by Corporation to------------------ 931, 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-stafldards 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 government agencies.
Benefit claims procedure ------- ;---------------------------------- 152e-549
549-50, 576-77, 620-21, 633, 988-90, 1q70, 1102, 1175, 1184-86, 148082, 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 MISCErLANEous-Secretary 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,t4898
See al8o:
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, 4170-739 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, 477071, 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, 4599t 4602, 4725, 4745-46, 4762-64, 4859,
4904,4955-56
Employee benefit plan as a separate legal entity ----------------------- 33-35,
769-70,92334-35, 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------------------------------------------ 8%,
1360, 4011, 4625, 4632, 4644-45, 5003, 5011, 5014, 5021, 5040 Participant or beneficiary---------------------------------------- 33,
35, 183-85, 303, 547-48t 579-81, 588, 613, 633, 769, 950-52, 985, 1076, 1100, 1163, 117 -74, 1183, 1477-7 81 1488 -89, 1604, 1641-429, 1726-27, 1835-36, 2334, 2349, 2364, 2367-68, 3294, 3299, 3304, 3379, 380G, 3815-17, 4047, 4593-94, 4624-25t 4745, 4753, 4796-97, 4814, 4898
(XIl)







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, 9-19, 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, 110"-1, 1459, 1615, 1630, 1651, 1670, 1727-28, 1848, 3786-87, 4562, 4576, 4588-90, 4594-959 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.
MISCEL-LANEOUS-Prohibition from holding plan office. Funding requirement:
Excise tax -------------------------------------------------- 863-465,
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, 46126, 4677, 4780, 4802, 4808, 4833, 4927-28, 4931-32
Other measures----------------------------------------------- 63465,
181-82, 245-46, 523-24, 577-78, 590, 592, 633, 755-57t 2316-20, 3302,
4005-07, 4898
Scc 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 accumulations----------------------------------------------------- 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, 325%-60, 3409, 3434-35, 3454, 3458-59, 3837-40, 4204, 420811, 4602-03, 4606-09, 4971, 4973-74
Reporting and disclosure ------------------------------------- 2446-47,
2497, 2i 21,2749-50, 3077, 3255, 3283-84, 4211, 4605, 4974-75 Prohibited transactions -------------------------------------- 2537-38,
27t23-25, 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, 143435, 1456-58, 18563, 2333-34, 2350, 2367, 2373, 2603, 3134, 3299, 3379,
3765-66, 4045-46, 4595, 4768-699 4900-01







XLM

ENFORCEMENT-Continued
Pages In
Judicial review of Legislative History
IRS and Tax Court decisions ------------------------------------- 1102,
1475, 1480, 1615, 1729, 2509, 2616-179 2620, 2696-97, 3040o 3148p
3151,3226-30,3431-32,344&49,3807
Secretary of Labor's decisions ------ 6330 9900 1186, 1481-82, 1729, 1835, 2373
See al8o:
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, 950-519 1174, 1182, 1475, 1491-93, 2335-36, 2364, 2368, 3299, 38029
3817-19, 3821-22, 4047-49, 4594, 47459 4899, 5014-15
-Keogh (H.R. 10) plans, penalties involving ----------------------------- 361,
377, 1616, 1618, 2521-25, 2623, 2704--06, 3052-56, 3154-55, 3236-39t
3434-35, 4186-90, 4601-0% 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 toSecretary of Labor ------------------------------ 35,
305, 5819 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, 26939 2705, 31349 3217, 3223,
3225-26, 3237, 3295-96, 33779 3414
Prohibited transactions (See Fiduciary standards.) Prohibition from holding plan office (See MiscELLA-wFous-Prohibition
from holding plan office.)
Regulation/rules, general authority:
Secretary 6f Labor ---------------------------------------------- 108,
318, 5009 743, 773-74, 18M, 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 ------------------------------------------------------- 31-329
301-302, 715-16, 767-68, 848, 994, 1052-53, 1059, 1123, 1143, 1199, 12219 1300-01, 1486, 1557-58, 1564-65, 1664, .0332-33, 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, 45939
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, 2496-989 2747, 2927-28, 3280, 3307,
3891, 4056-57, 4161-64, 4952-53
See al8o 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-&5, 621, 630, 770, 951-52, 1174, 1496, 2364, 3818, 4049-50,
4594,4596
Solicitor of Labor, representation of the Secretary of Labor by (See Representation of Secretary of Labor in litigation.)
Statute of limitations ------------------------------------------------ 46,
186, 314-15, 582, 733, 955, 986, 1174, 1184, 1378t 1493, 2290, 2508,
303993805,3819-20,3955-56,4173,4645,4896,4957
Subpoena authority -------------------------------------------------- 32-33,
107, 76"9, 957, 989, 1186, 1457-589 1481, 1836, 1856, 2334, 2367,
3765-N, 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.)













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-maximum age.
PARTICIPATION AND VESTING-Participation, special rules-air
pilots.
PARTICIPATION AND VESTING-Participation, special rules-nonresident 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, 3232-3, 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 -------------------------------249-6,
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 involving.
FIDucIARY REsPONSBIzTY-Prohibited transaction rules-owneremployee, 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 -----------------33-39,
361-63. 380-88, 874-75, 1021-35, 1040-42, 1077-78, 1097-98. 1187(XLV)








XLVI

INTERNAL REVENUE CODE--Continued
Keogh (H.R. 10) Plans-Continued Pages in
Owner, proprietary, etc.-continued Legislative History
1203, 1523-37, 1543-46, 1550, 1565, 1568, 1616, 1647, 1652-53, 165560, 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, 300"-7, 3021-22, 3044--51, 3054-56, 3154, 3232-46, 3281--82, 3434--35, 3461, 3467, 3471-72, 3561-70, 3636, 3850-55, 3857--63, 3868-72, 3891-92, 4139-43, 4178-85, 4190, 4532, 4566, 4570, 4583, 460"-2, 4680, 4684,
4690, 4760, 4763-64,t4946, 4950, 4959-65
Self-employed plans ------------------------------------------ 240-42,
360-62, 378-79, 387, 1078, 1094, 1184, 1187, 1192-W3, 1542-46, 156566, 1568, 1616, 1644-45, 1652, 1656-7, 1693, 1813-15, 1850-51, 1861, 1877, 1879, 2473-75, 2490, 2512-21, 2595-96, 2622-23, 2635, 26982712, 3005-06, 3022-23, 3043-51, 3056, 3126-27, 3153-55, 3167, 3230, 3233-45, 3409, 3412, 3433-35, 3448, 3452--53, 3458-9, 3461, 3466, 3471, 3473, 3514-15, 3550-70, 3576-77p 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:
ENFoRcEmEN'-Keogh (H.R. 10) plans, penalties involving.
FIDUCIARY RESPONSBILITY-Prohibited transaction rules--owneremployee, individual retirement accounts, subject to.
Trustee and custodial requirements.
Limitations on benefits and contributions for quali-fied plans and tax
sheltered annuities ---------------------------------------------437,
1023-28, 1034-35, 14650-52, 1054-6, 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 ----------------------------------------- 1035-40,
1078, 1102--C3, 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, 386-8 4234-7, 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, 2.548-52, 2618, 2726-28, 3065-66, 3079-84, 3150, 325960, 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, 25036-97, 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 (See FUNDING-Tax deductibility of
contributions.)
Termination insurance requirement (See TEumINATION INsuRANCz--Internal Revenue Code, amendments to.)
Trustee and custodial requirements-------------------------------- 347-48,
379-80, 387, 940, 1002, 1021-23, 1034-35, 1045-47, 1061, 1196, 150305, 1524-25, 1536, 1550-51, 1568, 2475-78, 2490, 2530, 2540, 2727, 2747-49, 3007--09, 3021-22, 3060, 3071, 3253--54, 3280-82, 3735-36, 3828-30, 3849-50, 3862-63, 3876-78, 4140-43, 4155-56, 4194-95, 4205,
4214, 4565-66, 4603, 4946-47, 4950, 4966, 4971,4978







XLVII

MI SCELLANEOU S
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, DisoLosunE-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, 148788, 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, 462829, 4677, 4765, 5009-10
See also REPORTING AND DiSCLosup.E-Actuarial report, filing requiremnents.
Advisory council-------------------------------------------------- 49-50,
167-69, 318, 563, 614, 632, 741-43, 1438-40, 1851-52, 2299-2301,
3301, 3769-71, 3966-68t-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,
3590,94663, 4671, 4686-87, 4692, 4744-45, 4770,4784
Bonding ----------------------------------------------------------- 31,
38-41, 590, 721-24, 2281-83, 2368, 3300, 3944-47, 4591, 4771, 489596
Case studies-------------------------------------------------- 1599-1600
1621-22, 1634-36, 1666-68, 1767-69, 1830-1, 1866-71, 3508--09, 4658,
4665, 4694, 4710-13, 4717, 4749-50, 4790, 4792, 4795-96, 4799
Coordination between Departments of Labor and theTreasuryTTTTTTTTTTTT318,
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, 3318-719, 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,
5869 600, 609, 623, 1340-41, 1620-21, 1673, 1720. 1794-96, 2483-899 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, 169, 2245-46, 2348-49, 2352-54, 2361-62, 2590-91, 2603--04, 3121-22, 3134-35, 3293-94, 3297, 3306, 3.311, 3378, 3415, 3453-54,
3477-78, 3493, 3902-03, 4657, 4673, 4683, 4686, 4701, 4706-07, 4840
Need for legislation--------------------------------------------- 3-5,
67-69, 94-96,9230-31, 48G-88, 587-97, 686-88, 1069-72, 1080-869 160204, 1665--68, 1634-36, 1759-64, 1829-31, 1860, 2243-45, 2349-55, 2387, 2592, 2598-2604, 3122-23t 3128-34, 3294-97, 3305, 3367--68, 3412-14, 3449-50, 3470-71, 3477-78, 3490-93, 3900-02,3907-08, 4748,-50, 480506, 4839-40
See also:
FIDUCIARY-Need for regulation.
FuNDING-NeedI for regulation.
INTERNAL REVENUE CODE-Need for equalizing tax, treatment.
PARTICIPATION AND V'EsTING-Need for.
TERMINATION INSURANcE-Need for insurance program.
Government plans, need for protection ------------------------------ 875-76,
1135, 1305, 1339, 1613, 2331, 2356, 238.9-90, 2482-83, 2490, 2-594, 260"-7, 2613, 2635, 2679--80, 2752, 2908, 3013-14, 3125, 3137-38, 3167, 3211-12, 3284-85, 3312, 3316, 3321, 3344, 3418, 3424, 3445,
3635, 3668-690 4043-44, 4147, 4627, 4685, 5006-07







XLVIII

MIS CELLANEOU S-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, 5006-07i 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 pension 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
772-73,2346,4052t4059,$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
109w-10, 306, 502, 603--04, 619, 771-72, 774, 952, 1282, 1856, 2337, 2339-40, 2374, 2914-16, 3304, 3742, 4051-M3, 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, 500-1, 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-Statement 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 -4 Vol. 2















[From the Congressional Record-Senate, Sept. 18, 1973]
RETIREMENT INCOME SECURITY FOR EMPLOYEES ACT
The PRESIDING OFFICER (Mr. HATHAWAY). Under the previous order, the Senate will now proceed to the consideration of the unfinished business, S. 4, which the clerk will state.
The assistant legislative clerk read as follows:
S. 4, to strengthen and improve the protections and interests of participants and beneficiaries of employee pension and welfare benefit plans.
The Senate resumed the consideration of the bill.
The PRESIDING OFFICER. Who yields time?
Mr. MANSFIELD. Mr. President, I suggest the absence of a quorum and ask unanimous consent that the time be charged to neither side.
The PRESIDING OFFICER. Without objection, it is so ordered, and the clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. WILLIAMIS. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
The PRESIDING OFFICER. (Mr. MCINTYRE). Without objection, it is so ordered.
Debate on the bill is limited to 6 hours to be equally divided by the majority and minority leaders or their designees; with 1 hour on any amendment in the first degree, except an amendment to be offered by the Senator from South Carolina (Mr. Thurmond), on which there shall be 2 hours; and that debate shall be limited to one-half hour on any amendment in the second degree, debatable motion, or appeal, to be equally divided and controlled by the mover of such and the manager of the bill.
Mr. WILLIAMS. Mr. President, I ask unanimous consent that the following staff members from the Committee on Labor and Public Welfare be accorded the privilege of the floor during the consideration of the bill.
Laurence N. Woodworth, Arthur S. Fefferman, Herbert L. Chabot, Robert A. Warden, Robert A. Blum, Howard J. Silverstone, James Billinger, and Richard Fay.
The PRESIDING OFFICER. Without objection, it is so ordered.
Who yields time?
Mr. CURTIS. Mr. President, reserving the right to object-and I shall not object,-I wonder if it was the plan to proceed with the proposed legislation until the chairman of the Committee on Finance (Mr. Long) was here to participate in the debate. It was my understanding, when I agreed to the limitation, that I was a(reeing to a limitation on the bill reported by the Committee on Finance. I did not know that the agreement related to any other bill until that fact appeared in print in the Record.
(1579)






1580

1 think a jurisdictional question is involved. I anticipate that everything will be ironed out properly and that we will end up with a good bill. I do not wish to imply any ir-regularities or anything irregular about the Committee on Labor and Public Welfare. I simply believe that this is a matter of great import to the Committee on Finance. I had assumed that we would wait until the chairman. was here.
Mr. GRIFFIN. Mr. President, would the distinguished Senator from New Jersey (Mr. Williams), the manager of the bill, agree to a reasonable delay?
Mr. WILLIAMrS. Let me say, first of all, that I think the procedure we are about~ to pursue now has certainly been cleared with the distinguishied chairman of the Committee on Finance. He was a part of the procedure that we shall describe in a moment. I think it appropriate, however, that the chairman of the subcommittee which gave special consideration to pension legislation comment.
Mr11. NELmSON. I do not believe the chairman of the Finance Committee would have any objection to our proceeding. But if the distinguished Senator from Nebraska desires to have a quorum call, I have no objection.
Mr. CURTIS. Further reserving the right to object, it is my understanding that there was a conference and that certain compromises were entered into. I have had a report on that. However, I was not present and have not seen the language. It is my understanding that the language of the amendment, which is really a series of amendments that incorporates the compromise that was entered into, will be here in a. few moments; it is not here now.
I take this occasion to express the hope that the leadership will work out an arrangement or an understanding that we will not have a final vote today, even though the 6 hours may be fully used-or it may be that some time will be yielded back-and that amendments may be offered tomorrow. I knowK of no ame-ndments to be offered.
I have every reason to believe that -the greater part, or perhaps all, of the compromise language will be accepted, even though it may not be to my liking, and will be enacted and not vigorously opposed.
We have some very far-reaching legislation before us, so I do think that we ought to have at least 1 day to examine the newly drafted language.
Mr. JAVITS. Mr. President, will the Senator from New Jersey yield?
Mr. WILLIAMS. I yield. hv a
Mr. JAVITS. Mr. President, my name is on the bill. I haehda great deal to do with it for a long period of years. I see nothing whatever unreasonable in the suggestion of the Senator from Nebraska..0
One things that does trouble me is the feeling thiat hec gave unanimous consent to the bill coming out of the Finance Committee. I was extremely clear on that, and~ I think the leadership was,, too. I hope very much that he will examine the record because I think he will find that all along it was the plan to bring up S. 4.
Finally, just before I left for Europe, we had a very fine meetings with the Senator from Texas (Mr. Bentsen), the Senator from Utah (Mr. Bennett), and the Senator from Louisiana (Mr. Long). I think matters have come into agreement. and I think the Senator will findand I certainly will join in giving him that assurance-that as we go






15,81

along, it is very likely-in fact, it is quite possible-that the matter will not be closed out today. We will have 1 day to study what has been added since last Friday, and amendments can be offered tomorrow as conveniently and as efficiently as they can be today.
Mr. CURTIS. Mr. President, further reserving the right to object, may 1 inquire what the procedure will be, what bill will be before the Senate, and in what manner the Finance Committee's bill will be brought before the Senate?
Mr. VILLI A IIS. Mr. President, the procedure that has been worked out by the Committee on Labor and Public Welfare and the Finance Committee, and brought to the Senate, is that the pending business, S. 4, will be discussed. I will discuss it, and I am sure Senator Javits will do so.
Following that, it is the intention of the Senator from Wisconsin (Mr. Nelson) to discuss the Finance Committee's reported bill and at that point offer the amendment, which embodies the compromises that have been arrived at between the two committees, and offer that compromise as a substitute for S. 4.
Mr. CURTIS. Is it the plan to offer the Finance Committee's revised language as a substitute bill? It would still be under the title of S. 4. Would that be offered in a manner that it would be considered as a complete bill and subject to amendment?
Mr. WILLIA MS. That is correct.
Mr. CURTIS. As original text?
Mr. WILLIAM3S. As original text and subject to amendment.
Mr. CURTIS. So that any amendment to the Finance Committee bill will be in order and will not have the handicap of being an amendment in the second or third degree ?
Mr. WILLIANMS. That is exactly the way it will be. Mr. CURTIS. And is it the understanding that part of the compromise is that the Committee on Labor and Public Welfare will not be resisting the amendment?
Mr. VILLIAmS. The amendment that Senator Nelson will offer is the compromise that was worked out with the two committees. That amendment includes the bulk of the substance of S. 4. All this will be explained as we proceed.
I yield to the Senator from West Virginia.
Mr. ROBERT C. BYRD. I only wanted to say to the distinguished Senator that any substitute, whether offered by the committee or offered by any Senator from the floor, is considered as original text and open to amendment in two degrees.
I ask the Chair whether I am correct.
The PRESIDING OFFICER. Any substitute for the bill is considered as original text; that is correct.
Mr. CURTIS. Do we have assurance that when this new amendment is considered as original language, there will be a right to offer amendments to it tomorrow, should the occasion arise? I do not know that such an occasion will arise, but I just believe that is the better way to legislate, inasmuch as this bill contains 227 pages. While the various Members are familiar with the substance of it, this is the first time we have seen it put together as an individual bill.






1582

I anticipate no specific objection to it, but I just believe that the reputation and credibility of the Senate will be maintained if we at least have 1 day before the curtain is drawn on all amendments, in case we use all the time today or yield it back.
Mr. HANSEN. Mr. President, will the Senator from New Jersey yield to me?
Mr. CURTIS. Mr. President, could I have an understanding on this?
The PRESIDING OFFICER. The Chair states that a unanimous consent request is pending as to whether certain staff members can have the privilege of the floor, and the Chair would like to rule on that.
Mr. NELSON. I have a request, Mr. President.
Mr. WILLIAM3S. 1i\. President, could that be incorporated with another request of the Senator from Wisconsin for the Finance Committee staff members?
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. NELSON. Mr. President, I ask unanimous consent that Laurence N. Woodworth, Arthur Fefferman, Herbert L. Chabot, Robert A. Warden. Robert A. Blum. Howard J. Silverstone, James Billinger, of the Joint Committee on Taxation, and Mr. Richard Fay, of my staff, Mr. David Allen, of Senator Bentsen's staff, and Mrs. Marilyn Kester, of Senator Hansen's staff, be permitted the privilege of the floor during the course of the consideration of this measure.
The PRESIDING OFFICER. Is there objection?
Mr. GRIFFIN. Mr. President, reserving the right to object, I ask that the name of David Clinton, of my staff, also be added.
Mr. THiTRMOND. Mr. President, I ask unanimous consent that the names of Mr. Stanley Hackett and Mr. Raymond Sifly be added to the list
Mr. HANSEN. Mr. President, reserving the right to object-and I shall not object-I want to point out that, as the Senator from Nebraska has already said, many Members have not had an opportunity to read the measure we are now considering. It is a very important bill. It deserves our studied attention.
I hope the leadership will be mindful of the fact that it will take a little while for Members to understand the issues involved, to raise questions that deserve answers. With that in mind, it is my hope that there might at least be no votes until after, say, 2 o'clock this afternoon.
Senator Roth called this morning. He regrets very much that a funeral prevents his presence on the floor this morning. He will be here at 2 p.m.
I ask the leadership whether it might be understood that there will be no votes until, say. after 2 p.m.
Mr. WILIAM1S. Mr. President, I yield to the Senator from West Virginia.
Mr. ROBERT C. BYRD. May we have a ruling from the Chair?
The PRESIDING OFFICER. Is there objection to the unanimous-consent request?
Mr. Cmnrs. Mr. President, reserving the right to object, I would like to know whether or not we have an understanding that amendments may be offered tomorrow, with full opportunity to debate them.






1583

Mr. ROBERT C. BYRD. Would the Senator allow the minor requests to be acted on? Then there will be a response. The request is just for attaches to be on the floor. Would the Senator allow that?
Mr. CURTIS. All right.
The PRESIDING OFFICER. Is there objection?
Mr. THURMOND. Mr. President, reserving the right to object, I expect to offer an amendment unless the compromise amendment goes further and covers the points I have in my amendment. I simply want the small businessmen to be on an equal basis with big businessmen. As I understand, the compromise amendment does not do that.
I am going to object to anything unless it is clear that we have the right to offer this amendment to the compromise amendment or, if that is considered the original bill, to the original bill, at the proper time: and I would like it understood that I will be notified to be here if any other agreements are to be entered into that might affect my position.
The PRESIDING OFFICER. Is there objection to the unanimous-consent request? The Chair hears none, and it is so ordered.
Mr. WILLIAMS. Mr. President, I yield to the Senator from West Virginia.
Mr. GRIMI N. Mr. President, I ask unanimous consent that the time now being consumed and having been consumed up to now not be charged against the 6 hours under the unanimous-consent agreement.
The PRESIDING OFFICER. Is there objection? The Chair hears none, and it is so ordered.
Several Senators addressed the Chair.
The PRESIDING OFFiICRi. The Senator from New Jersey has the floor.
Mr. 'WILLIAMS. I yield to the Senator from West Virginia.
Mr. ROBERT C. BYD. Mr. President, may I say that, of course, if any Senator wishes to offer an amendment to this bill on tomorrow, I am confident that arrangements can and will be made to accommodate that Senator. There is a limitation of time on the bill of 6 hours, which is ample, we think. If there were a disposition on the part of the Senate to complete the bill today I think that could be done, depending on how many amendments would be offered. There is a time limitation on amendments.
An amendment by the Senator from South Carolina (Mr. Thurmond) has been provided for and 2 hours have been allowed for debate on the amendment.
I think at the close of today we will be in a much better position to ascertain the needs of tomorrow. I am confident that there is a disposition on both sides of the aisle to work as long as we can to accomplish as much as we can and then to put over until tomorrow any final votes, giving Senators an opportunity to look over the bill overnight and to look over the actions of the Senate today and then to decide if they want to offer amendments tomorrow.
It also is the hope of the leadership that we can dispose of this bill as early tomorrow as possible so the Senate can take up the military procurement bill.
Mr. GTIFFIN. Mr. President, will the Senator yield?
Mr. WILLIAMS. I yield.






1584

Mr. GRIFFIN. Mr. President, I would like to add that the time of 6 hours under the bill is under the control of the majority leader and the minority leader. Speaking for the minority leader and myself, we will be sure that in the allocation of that 3 hours the wishes of the Senator f rom Nebraska and others will be carefully observed. We will not yield all of that time today as long as the Senator from Nebraska is of the opinion that amendments should cro over until tomorrow. Of course, that can easily be taken care of by the fact that tiny amendment that is offered will take an ho *r to debate, and if there is a vote it will take additional time. So I do not think there will be any difficulty in assuring that the bill will not be completed today.
Several Senators addressed the Chair.
ThePRESIDING OFFICEiz. The Senator from New Jersey has the floor.
Mr. WILLIAMS. I yield to the Senator f rom South Carolina.
Mr. Tiium\ioND. Mr. President, there will be no desire on my part to slow the bill: we are ready to vote today; we are ready to vote now if the Senate wishes to vote. I wanted the procedure to be clearly understood so we could have a clear-cut debate on the points embodied in the amendment I shall offer to the bill.
Mr. WILLIAMS. I yield to the Senator f rom Wisconsin.
Mr. NELSON. Mr. President I do not believe we can complete this bill today under any circumstances. The amendment that the Senator from Nebraska referred to is only the first amendment of two major amendments to be offered.
The first amendment is 227 pages lona. There is no way for any Member who has not had his staff working on this legislation to know where to offer appropriate amendments without having it available for some time. The second amendment responds to the issue raised by the Senator from Nebraska. The second amendment embodies all of the tax provisions dealt with in the Committee on Finance bill S. 1179 which are not in S. 4. The second amendment will be over 70 pages
0 ng.
This is a complicated bill. Members will have to have these amendments in their hands so they c,,in review the provisions and find the place for amendment if they desire to amend the bill.
I have two amendments. I I will be offering two major amendments on behalf of the Senate Finance Committee, but I have two amendments of my own because I disagree with the decision of the Committee on Finance.
My two amendments are critically important and they deal with the question raised by the Senator f rom South Carolina (M r. Thurmond). Those two amendments should be voted on tomorrow. There is no way for Members to familiarize themselves with the issues involved during the course of this day.
The Senator from South Carolina has an amendment involving a very important principle in which he argues that closely held corporations and professional corporations. should be dealt on an equal tax basis for pensions, compared with General Motors. ITT, etcetera. I intend to offer an amendment which would require that large c orporations, small corporations, professional corporations. be treated T)reciselv alike; however, my amendment will place a limitation that there be ft'limit. In the present law and in this bill there is no practical limit











on mjor orpoaos Itikteesuof be some limit on the taxdeductible pensions provided to high-paid corporate executives. Thy CptteF roposalwoul provide that ther shallblimit on tax-deductibe dllrs hatca besetasde orpeisno t o xcSd7 percent of he as hihes 3yeas o ernigsbased on a $60,000 maximum
incme:tht i tosa, n on i a arg crpoatoroi a salcorporationcoud rceie apenionin xces o 5,00 year.
VieComitte n Fpaiceprovisionlp0-1lc for ,)liito contributions determined as 75 percent of the last highest 3 years of earnings based on a maxiium base of $100,U00, thus allowing a maximum pension, paid for by tax-deductible dollars, of $75,000 a year. I think that is a major loophole in the tax laws. I do not think it is defendable. It is an issue that should be debated on the floor of the Senate. The principles raised by my amendments need to be debated. If Congress is going to allow wealthy people to retire on pensions of $75,000 a year paid for by tax deductible dollars, I think it is an unconscionable act and the entire country should know what we have done. Members of the Senate should not be voting on this unless they really understand what we have done in this bill. So my two amendments will come up tomorrow.
Mr. CURTIS. Mr. President, will the Senator yield for a parliamentary inquiry?
Mr. WILLIAMS. I yield.
The PRESIDING OFFICER. The Senator will state it.
Mr. Curns. My parliamentary inquiry is this. When the amendment in the nature of a substitute to be proposed by Mr. Nelson for Mr. Long, Mr. Bensen, and Mr. Bennett is offered under the unanimous-consent agreement, how much time will be allotted on this amendment?
The PRESIDING OFFICER. One hour.
Mr. Javits addressed the Chair.
Mr. CuRTIS. Mr. President, I again point out that that is not a proper way to proceed. There would be no reason why the leadership would consult with the junior Senator from Nebraska about handling a bill that came from the Committee on Labor and Public Welfare.
Mr. ROBERT C. BYP.D. Mr. President, will the Senator yield?
Mr. CURTIS. I was clearly under the impression that the work of the Committee on Finance would have 6 hours' general debate and that was what I agreed to when I left the floor. But the agreement was in reference to a bill coming from the Committee on Labor and Public Welfare. I do not think the Senate should tie its hands to a debate for 1 hour on an amendment of 227 pages.
Mr. JAVITS. Mr. President, will the Senator yield?
Mr. WILLIAMS. I yield.
Mr. JAvITs. Mr. President. a parliamentary inquiry?
The PRESIDING OFFICER. The Senator will state it.
Mr. JAVITS. Mr. President, if a unanimous consent is made when the substitute is submitted that the substitute be considered as original text, and that unanimous consent is agreed to, what will then be the time situation?
The PRESIDING OFFICER. Any substitute to the bill will be considered as original text without any unanimous-consent agreement. Under the






1586

unanimous-consent agreement which we entered into an original amendment would be limited to 1 hour of debate.
Mr. JAVITS. Mr. President, if the substitute, once submitted, is accompanied by a, unanimous-consent request that the substitute shall be considered as if it were original text of the bill, will that change the situation? It seems to this Senator it certainly would. Incidentally, it is our intention that the unanimous-consent request shall apply6 hours, 1 hour, 2 hours, et cetera-to the original text of the bill as incorporated in the substitute. That is why we intend to ask unanimous consent-at least, I am sure the Senators Nelson, Bentsen, and Long would agree; we have all agreed-that the substitute should be submitted as original text, and therefore the unanimous-consent agreement would apply.
The Senator from Nebraska (Mr. Curtis) is entirely right. We had no intention or desire that there was to be 1 hour's debate on the compromise. We would have to make a new unanimous-consent agreement which would be in effect. We will submit the substitute with the unanimous-consent request that it stands as the original text of the bill.
Mr. ROBERT C. BYRD. Mr. President, will the Senator yield?
Mr. WILLIAMNS. I yield.
Mr. ROBERT C. BYRD. What the Senator is suggesting-and I am not at present raising any objection-is that we enter into a new unanimous-consent request with regard to time on the substitute. As I understand the rules, any substitute for the bill, such as the Senator contemplates, is automatically considered as original text without unanimous consent, and open to amendments in the first and second degrees.
If the Senator wishes to ask unanimous consent that at such time as the substitute is offered there be a certain amount of time on that, that is all right, but I do not think we ought to get into the situation of asking unanimous consent that the substitute be considered as original text merely for the purpose of getting additional time. If that is what the Senator desires to accomplish, I think we should go right ahead and ask for additional time on the substitute, because it would, in any event, be considered as original text.
Mr. GRIFFTN. Mr. President, if the Senator will yield, I wanted to say that any portion of the 6 hours provided for in the unanimousconsent agreement that had not been consumed at that point could be used in the discussion of the substitute. Mr. ROBERT C. BYRD. Yes. The Senator is correct. Mr. GRIFFIN. In addition to that, 1 hour is provided for.
Mr. ROBERT C. BYRD. Yes.
Mr. GRIFFIN. Would it not also be true, I should like to ask the Chair, if an amendment to the substitute is offered, it would have to be in the first degree, and would there not be an additional hour on any amendment to the substitute?
The PRESIDING OFFICER. The Senator from Michigan is correct.
Mr. GRIFFIN. So I can see that there is plenty of time available.
Mr. BENTSEN. Mr. President, let me discuss the practicalities of thiz-The PRESIDING OFFCER. The Senator from New Jersey has the floor.
Mr. WILLIAMS. I yield to the Senator from Texas.







1587

Mr. BENTSEN. Mr. President, we have had a remarkable degree of cooperation between the two committees; namely, the Senate Labor and Public Welfare Committee and the Finance Committee. In the spirit of that type of cooperation, it seems to me that we ought to have an equal allocation of time on the bill between the Finance Committee and the Labor and Public Welfare Committee. We have some 6 hours on the bill. It seems to me there have been almost equal contributions by those committees. Could not the allocation of those 6 hours be divided between the contributions of the Finance Committee and those of the Labor and Public Welfare Committee?
Mr. JAVITS. Mr. President, will the Senator yield to me?
M r. W ILLIAMS. I yield.weh v ari e att spon :6 ou s n
Mr. JAVITS. Mir. President,wehvarieathspon:6ousn
the bill extends to the substitute. There is 1 hour on the substitute itself. Any amendment to the substitute has 1 hour of its own. That is exactly where we are on the bill, with one exception: 2 hours for the Senator from South Carolina (Mr. Thurmond).
Therefore, as I understand it, we can let the matter stand exactly as it is, with the understanding that any amendment the Senator from Nebraska (Mir. Curtis) has-indeed, I think any amendment to the self-employed part of the bill-should be acted on tomorrow. I understand that is the main focus of the interest of the Senators who have spoken. So that would be done tomorrow rather than today, and on getting the unanimous consent, when the substitute is offered, the Senator from South Carolina (AMr. Thurmond) may have 2 hours on his amendment to the substitute. Then we will be exactly where we are today on the unanimous consent agreement to the bill, and no one will be prejudiced or discriminated against.
With the division of time as to the Finance Committee, both the Senator from New Jersey (Mr. Williams) and I, and the Senator from Michigan (Mr. Griffin), representing the minority leadership, have 3 hours. I think we are in complete agreement that half of all the time we have should go to the Finance Committee. So there is no problem, provided we get-and I hope Senators will be accommodating-2 hours on the amendment the Senator from South Carolina (Mir. Thurmond) had contemplated offering to the original bill. Would that not settle it?
Mr. BENTSEN. Mir. President, I suggest the absence of a quorum
Mr. ROBERT C. BYRD. Mr. President, will the Senator withhold that request ?
Mir. BENTSEN. Yes, I withhiold it.
The PpRSIDING OFICER. IDoes the Senator from New Jersey yield?
Mir. WILLIAMS. I yield.
Mir. ROBE RT C. B3YRD. Mir. President. I sugr~cest that we proceed. I do not think this will be a difficult problem. To say at this point that there will be an equal amount of time given to the committee substitute is something we ought not to fret into at this point. For example. I do not know how much time will be usedl on the committee bill before we gyet to the substitute. We may,spencl only 5 minutes on the bill. Or, we may spend 5 hours.
Does not the Senator agree that wve ought not to gret into that probkem until it arises?Z7






1588

Mr. JAVITS. With one other understanding: No matter what we do, the Senator from South Carolina (Mr. Thurmond) retains, as a sort of gentlemen's understanding here, his basic 2 hours on his amendment as it goes to the substitute. Other than that, I think we are exactly where we were. As far as I am concerned, I think we have done exactly what we intended to do.
Mr. ROBERT C. BYRD. I assume the Senator from South Carolina intends to offer his amendment to the substitute. Mr. TIIURMOND. That is correct, Mr. President. I understood the substitute probably would be offered and probably would be adopted, and that I would offer my amendment to the substitute.
Mr. ROBERT C. BYRD. Mr. President, I ask unanimous consent that on the amendment by the Senator from South Carolina-which will be offered to the substitute-there be an allocation of 2 hours, as it was previously agreed to when it was anticipated that he would offer his amendment to the bill.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRIFFIN. Mr. President, may it be understood that none of the time up until now has been charged against the 6 hours allocated to the bill?
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRIFFIN. Mr. President, on behalf of the minority leader, I should like to indicate that half of the time on this side will be allocated to the distinguished ranking member of the Labor and Public Welfare Committee and half to the ranking member of the Finance Committee or his designee.
Mr. JAVITS. I think that is very fair.
Mr. WILLIAMNS. Mr. President, today the Senate takes up the consideration of S. 4, the Retirement Income Security for Employees Act.
Mr. ROBERT C. BYRD. Mr. President, will the Senator yield?
Mr. WILLIAMS. Mr. President, I am happy to yield.
Mr. ROBERT C. BYRD. Mr. President, the time on passage of the bill is under the control of the distinguished majority leader and the distinguished minority leader. Acting on behalf of the majority leader, may I ask the Senator from New Jersey and the Senator from Wisconsin how they would like to have the time allocated. How would the Senators like the 3 hours to be allocated?
Mr. CURTTS. Mr. President, may we be informed what arrangement is being made?
Mr. ROBERT C. BYRD. I had hoped that the Senator heard what I said.
Mr. CURTIS. No: I did not hear it.
Mr. ROBERT C. BYRD. Mr. President, under the agreement, the time on this side for debate on the passage of the bill was to be under the control of the distinguished majority leader. I am asking the distinguished Senator from New Jersey and the distinguished Senator from Wisconsin how they would like to have those 3 hours allocated between them.
Mr. WLT.TI\S. Mr. President, I would hope that the Senator from Wisconsin and I could jointly manage the time as the proponents of the, bill. Then there will be a substitute offered. I wondered if we could jointly manage the allocation of the time.








Mr. ROBERT C. BYRD. Mr. President, on behalf of the majority leader, I yield half the time on the b~ill to the Senator from Wisconsin and half to the Senator from New Jersey.
MIr. NELSO-N. Mr. President. may I inquire whether it has been agreed that the two major amendments will be offered as original text?
M\r. ROBE-RT C. BYRD. If they are in the form of a substitute for the bill. they would be considered thusly.
Mr. 'NELSO-N. The first one we will offer as original text, and the second as an amendment.
Mr. ROBERT C. BYRD. Mr. President, is the first one to be considered as a complete substitute?
MAIr. NE' ,L S0-N. The Senator is correct.
Mr. ROBERT C. BYRD. Mr. President, then that -would automatically qualify as original text.
MA r. 'NELSON. 'Mr. President, I will offer the second one as an amendment and ask unanimous consent that it be treated as original text.
Mr. ROBERT C. BYRD. Then that would be a matter for the Senate to decide, as to whether or not it wished to object. Does the Senator wish to make that request at this time or later?
Mr. NELSON. M-\r. President. T ask unanimous consent that amendment No. 497, which would be the amendments from the Finance Committee. be treated as original text at the time I offer it.
The PRE-SIDING OiFFiCER. Is there objection to the request of the Senator f rom Wisconsin?
Mr. CURTIS. Mr. President, reserving the right to object, what does that amendment contain?
Mr. -NELSON. It contains all of the provisions that the Finance Committee put into the legislation which are not related to subjects in S. 4.
Mr. CURTIS. Are not those provisions in the amendment that I hold in my hand?
M Ir. 'NE LSON. No; the provisions in the Labor Committee bill and in the Finance Committee bill which were dealt with by both committees-vesting, funding, fiduciary responsibility, and so forth-have been worked out and are in the amendment that the Senator from Nebraska is holding in his hand.
The other amendment would contain all the provisions that the Finance Committee dealt with and that the Labor Committee did not deal with at all.
Mr. CuRTIS. M.\r. President, why are they not in this amendment in the nature of a substitute?
Mr11. NELSON. The amendment before you is the material agc~reed to with members of the Labor Committee. The next amendment is exactly as agreed. to by the Finance Committee and relates only to tax matters.
On page 3 of the amendment the Senator has in his hand, if the Senator looks at title VIII he will see the provisions included in the second am-endment are all from the Finance Commiftee. None of those provisions was dealt with in the Labor Committee bill.
Mr. THURMOND. And they are not incorporated in this document which I have this morning?.
Mr. NELSON-\. The Senator is correct. They are not. The first amendment which will be offered contains only the items that were dealt with by both the Finance Committee and the Labor Committee as far as vesting and so forth are concerned.






1590

The second amendment contains only the tax provisions that the Finance Committee dealt with alone.
Mr. CURTIS. Those are some of the more important parts of this legilation.
git includes the amendments to the Keogh bill, H.R. 10, which involves the question of limitations that the distinguished Senator from South Carolina wished to discuss.
It will also include a new provision giving to individuals not covered by any plan an opportunity to provide for retirement and tax benefits.
Mr. NE LSON. The Senator is correct.
Mr. CURTIS. It also provides for lump sum distributions.
Mr. NELSON. The Senator is correct.
Mr. CURTIS. Now, if that is offered as another bill, I expect that those three things would be subject to an hour's limitation.
Mr. NELSON. The proposal is that half of the time be managed by the Senator from New Jersey, and that time, if it is all used, will be used on Amendment No. 496. The other half of the 6 hours will be used on the second amendment which involved the issues the Senator discussed. And that will have 3 hours.
Mr. CURTIS. Then, does Ihe Senator mean that the minority members of the Committee on Finance will have 45 minutes in which to discuss this matter?
Mr. NELSON. I do not understand. There will be 3 hours.
Mr. CURTIS. That is an hour and a half to the side.
Mr. NELSON. Then there is 1 hour on any amendment that any Senator wishes to offer. As far as to the Finance Committee amendments, I am perfectly willing to give any Senator on the minority side that wants half of it, 1 hours of the 3 hours. It is perfectly satisfactory.
No one is limited, because all that any Senator has to do is to offer anl amendment and have 1/2 hour on his side of the amendment in any event.
The PESIDING OFFrICER. Is there objection?
Mr. THURMOND. Mr. President, will the Senator yield?
The PRESIDING OFFICER. Is the Senator reserving the right to object.
Mr. TiJURMWOND. Mr. President, reserving the right to object, will the Senator yield?
Mr. WILLIAMS. Mr. President, a parliamentary inquiry.
The PRESIDING OFFICER. The Senator will state it.
Mr. WILLIAM~S. Mr. President, is there a unanimous-consent request pending before the Chair?
The PRESIDING OFFICER. There is a unanimous-consent request by the Senator from Wisconsin that amendment No. 497 be considered as original text when offered. And the Senator from South Carolina, as I understand it, has reserved the right to object.
Mr. NELSON. Mr. President, I asked unanimous consent that amendment No. 497 when offered be considered as original text.
The PRESIDING OFFICER. The Senator is correct.
Mr. THURMOND. Mr. President, as I understood it, the plan was for the Finance Committee amendment, which is S. 1179, which was a compromise amendment, so I was informed, be offered as a substitute for the bill. I understood that everyone had agreed on that more or less. Is that the case or not?






1591
Mr. WILLIAMS. Mr. President, that is close, but not quite correct. The essence of S. 1179, as I understand it, is the bill introduced by the Senator from Texas. That was the bill considered in the Finance Committee.
The substitute is designated as a substitute for S. 4, and that carries the number 496. That is the compromise position that was worked out between and by members of the two committees involved here.
Mr. THLTRMOND. That is what I understood. In effect, then, S. 1179 would become the basic bill if that amendment is accepted?
Mr. WILLIAIS. The original S. 4 and the original S. 1179 were put together after long, long discussions, and the resulting compromise is an amendment that now bears the number 496. It will be offered as a substitute to S. 4.
Mr. TIIURM_%OND. Mr. President, Amendment No. 496 will be a compromise bill. It represents the work of the Finance Committee and the Labor Committee. That would be adopted as the basic bill. Is that correct?
Mr. WILLIAM1S. Precisely.
Mr. THiURMOND. Mr. President, I withdraw my amendment No. 496, with respect to page references and so forth.
Mr. NELSON. Mr. President, the next amendment will be amendment No. 497. The Senator's amendment would be applicable to that one, and the staff will assist in showing the correct line and page numbers.
Mr. THURMOND. Is Amendment No. 497 the result of the Finance Committee bill and the Labor Committee bill? Is that the compromise? I have drawn my amendment to that compromise.
Mr. WILLIAMS. Amendment No. 497 is a Finance Committee product purely. The Labor Committee certainly has no jurisdiction. It has interest, but has no jurisdiction. This is purely the tax aspects as the Senator from Wisconsin described earlier.
Mr. NELSON. Mr. President, that amendment is not here yet. So, if the Senator's staff would check with the Joint Taxation Committee staff, they will see to it that the Senator's amendment will fit in the correct place in that amendment. However, I asked unanimous consent that the amendment that contains the provisions from the Finance Committee bill be offered to this substitute, and when offered, it will be treated as a simple amendment and be treated as original text. If that unanimous-consent agreement is agreed to, the Senator from South Carolina will be offering his amendment to that amendment. Mr. TiURMONfoD. In other words, as I understand it, the amendment that I intend to offer would be offered to the compromise of the Finance Committee and of the Labor Committee? Mr. NELSON. Designated amendment No. 497, not 496. Several Senators addressed the Chair.

RETIREMENT INCO3E SECURITY FOR EMrPLOYEES ACT
The Senate continued with the consideration of the bill (S. 4) to strengthen and improve the protections and interests of participants and beneficiaries of employee pension and welfare benefit plans. The PRESIDING OFFICER. Is there objection to the unanimous-consent request of the Senator from Wisconsin?

Wicni'






1592

Mr. TH-URMOND. Mr. President, reserving the right to object, we are conferring now.
Mr. ROBERT C. BYRD~. Mr. President, may I reserve the right to obj ect also, w hile Senators are discussing the matter?
Mr. CURTIS. Mr. President, may I be recognized? I have a suggestion that I think will help solve the problem.
The PRESIDING OFFriICER. Does the Senator from New Jersey yield to the Senator from Nebraska for that purpose?
Mr. WILLIAM1S. I yield to the Senator from Nebraska.
Mr. CURTIS. Again, while there is no neglect on anyone's part, we find ourselves in quite a tangle over this limitation of debate. We could end up with some very important matters here with just a few minutes of debate, and the time on the bill all exhausted.
This matter has taken a decided turn since the unanimous-consent request on time limitation was agreed to. As I stated earlier, when I agreed to the unanimous- consent request, I thought I was talking about legislation coming from the Committee on which I served, the Finance Committee.
Mr. ROBERT C. BYRD. Mr. President, may we have order in the Senate while the Senator is talking?
The PRESIDING OFFICER. The Senator from Nebraska will suspend. The Senate will be in order.
Mr. CURTIS. Now we find a further turn. I thought that the entire work of the Senate Finance Committee would be offered as a substitute, including the compromise language, but that is not going to be true.
I not only did not see this language, I did not know there was a compromise underway. I am the ranking minority member on the Subcommittee on Private Pensions, and I knew of no compromise underway. Now, it is true that those subcommittees held the hearings and the full committee wrote the legislation for the Finance Committee, but at the same time I had no knowledge of it.
I think we will actually save time if the distinguished acting majority leader would ask unanimous consent that the limitation on time previously agrreed to be set aside.
Mr. ROBERT C. BYRD. Mr. President, I could not agree to that request. I feel that as we proceed things will work out, as they always do. The Senator has been here longer than I have, and he knows very well that we oftentimes run into these problems that are seemingly impossible of resolution, but they work themselves out. I do not think we will have an insurmountable problem in this instance. We have 6 hours on the bill 1 hour on any amendment, 2 hours on the amendment by Mr. Thurmond, and one-half hour on any amendment to an amendment. I think if we just get started, it will work out all right. I am confident that it will. I understand the bill's complexity, and I ami not on either of the committees which have jinriscdiction, but I would hope that the Senator would simply let us proceed. T would want to debunk any suggestion, at the moment, that the unanimous-consent agreement should be vitiated. As we reach the problems, we will find the answers to them, procedurally, may I say.
Mr. CURTTS. I think that we would save time and have a much more orderly procedure re if we abandoned the unanimous-consent agreement made under entirely different circumstances.







1593

The PRESIDING OFICERa (Mr. Hathaway). Is there objection to the request of the Senator from WisconsinV
Mr. HARTKE. Mr. President, I ask unanimous consent that a member of my staff, Craig Hudson, may have the privilege of the floor during the considerations of this bill.
The PRESIDiNGi Orricni Without objection, it is so ordered.
Mr. HARTKE. Mr. President, reserving the right to object, the Senator from Nebraska (Mr. Curtis) has put hi-s finger on the problem. I raised this point at the Democratic caucus, that they would not be prepared to proceed on this bill at this time. The bill was not available last night. There is no report of it on the floor, although there were reports on two separate bills, one by the Committee on Labor and Public Webfare, and one by the Finance Committee. We have a summary here on the agreements worked out by the two committees.
The Senator from Nebraska (Mr. Curtis) has correctly stated the situation, that while this was done last Friday, there is no way for Members of the Senate to understand what is in this very complicated piece of legislation, which I think is as complicated a bill ever to come to this floor in a very long time. It gives promise of performance without much reality. It freezes in the status quo.
I would want to raise this question with the Chair: If there is an amendment presented, is it subject to a point of order immediately before failure to comply with the bill which no one at this moment. has even seen?
Mr. ROBEwR C. BYRD. Mr. President, may I say in response, while the Parliamentarian is discussing other matters, that any Senator may require that an amendment be in writingMr. IRTKE. I understand that. I have some amendments in writing to the bill to be reported to the floor of the Senate. That bill will now be replaced by one which no one has yet seen. No Member of the Senate has had the opportunity to read it except a few choice people selected without any statements to the committee.
The Senator from Nebraska (Mr. Curtis) would agree with that. What was worked out bypone part of the committee, and I got this from the press release--this is probably, in my opinion, the sloppiest piece of legislation ever presented to the floor of the Senate. It is a bad way to do business. We are dealing with the futures of 30 million Americans here. I say to you, Mr. President, that to do this in this fashion without having a chance to understand what is in the billthe original legislation was bad enough-I do not know what this does-I tried until 6 o'clock last night to get a copy of the bill. It was not drafted. There is no report. There is nothing on which we can proceed now. What is being attempted by the Senator from Wisconsin is to substitute one bill for two other bills. In other words, what is being attempted at the present time is to legislate on a piece of legislation, and what they are trying to do is to divide the authority of the committee. There is no one piece of legislation which is being pr-esented to the floor of the Senate. I seriously doubt whether this conforms to any Senate rules, unless we want to do it by unanimous consent. So, to me, to all intents and purposes, we have abrogated the committee system.
Mr. ROBERT C. BYRD. Will the Senator from Indiana yield?
Mr. HAnRK. I am gl ad to yield.
25-028-76-vol. 2-5







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Mr. ROBERT 'C. Bmnw. May I say that I see nothing untoward,. procedurally, in the situation here. We are often confronted with complex measures on the floor of the Senate, to which any Senator may offer a substitute. This does not rule out -of order any amendments to the substitute, really, on that basis alone.0
Mr. HiuRTKu. 'I quite understand what the Senator is saying. We can do anything by unanimous consent, except abolish the Senate on the floor of the Senate, possibly. But this has absolutely eroded the- committee structure system. There has not been an effort made here to deal with this legislation in terms of the committee system of the Senate. The Senator from West Virginia (Mr. Robert C. Byrd)' is correct, we can substitute a whole new bill in writing on the floor, of the Senate. That is not what is being attempted to be done here. A small group of people have gotten together and presented, on the day of debate,, a compromise measure, agreed to by a few of them. That is what it is. That is perfectly legitimate. It is perfectly legal. There is no question about it. But, it is not good legislative practice. That is how we get bad bills.
Mr. RoBERT C. BRDr. I would agree with the Senator from Indiana, to that extent, it is often done-often doneMr. HARTKE. It is not done in this fashion. What we have here are two bills from the two committees which have been reported and we take them in tandem and put one on top of it to handle-well, what we have are three bills. The Senator from New Jersey will agree with that, that we are trying to divide the time up in accordance with three bills, one from the Committee on Labor and Public Welfare, one from the Finance Committee, and one from the Senator from Wisconsin (Mr. Nelson). Is that not true?
Mr. WmLim~s. Yes. And we all know that for a long time we have had joint jurisdiction of the broad subject matter Of pension legislation. The Committee on Labor and Public Welfare has been working on this pension legislation for 3 years, very intensely. The Finan ce Committee historically has had, of course, a tax interest in pension legislation. When the Labor and Public Welfare Committee reported the bill, and it came to the calendar, it was held for a while--so that the Finance Committee-could consider pension legislation as it had every legislative Jurisdictional right to do.
It was discovered in the Finance Committee, of which the distinguished Senator from Indiana (Mr. Hartke) is a member, that there was much in the Labor and Public Welfare Committee bill that members of the Finance Committee felt had a great deal of merit in terms of substance. Then the question came on how to report the bill from the Finance Committee that incorporated the substantive ideas that both committees had agreed on, together with the weaving in of tax enforcement.
I think that we have brought forth a legislative product that is a model of adjustment of committee jurisdictions. Rather than finding it the sloppiest way to do business, in my judgment, I believe it is one of the most civilized and promising developments in the Senate where two committees do not get at loggerheads and fight each other over jurisdiction of legislation but come together on substance and agreement.






'1595
Mr. BErwTsE. Mr. President, will the Senator from New Jersey yield to me?
Mr. HARTKE. Mr. President-Mr. President-I have the floor-Mr.. President, who has the floor?
The PRESnING OFFICER (Mr. ALLN). The Senator from New Jersey has the floor.
Mr. HARTHE. Mr. PresidentMr. WILLIAMS. Mr. President, at this point, I yield to the Senator from TexasMr. IARTKE. Mr. President, the Senator from New Jersey cannot yield on my timeThe PI'SIDING OFFICER, The Senator from New Jersey has control of the time and he is yielding to the Senator from Texas.
Mr. HARTE. All right.
The PRESIDING OFFICER. The Senator from Indiana reserved the right to interpose an interjection. This unanimous-consent request is not debatable. At a very early moment, the Chair will cut off this discussion and ask if there is objection to the unanimous-consent request.
Mr. ,WILLIAMS. Mr. President, I yield to the Senator from Texas (Mr. Bentsen) who, I am sure, can clarify and tell the Senator from Indiana where we stand.
The PREsIDING OFFICER (Mr. ALLEN). Is there objection to the requestMr. IIARTKE. Mr. PresidentMr. ROBERT C. BYRD. Mr. President, what request are we talking about?
The PRESIDING OFFICER. The request of the Senator from Wisconsin (Mr. Nelson) that when amendment No. 497 is offered, it will be considered original text.
Mr. ROBERT C. Byrw. Mr. President, reserving the right to object. and if the Senator from New Jersey will yield to meMr. WILLIAMS. I do.
Mr. ROBERT C. BYRD. May I say that the distinguished majority leader, prior to the August recess, requested and secured unanimous consent to lay down S. 4 for consideration by the Senate as of September 11, 1973, which was last Tuesday. Various members of the Finance Committee, including the distinguished Senator from Texas (Mr. Bentsen) and members of the Committee on Labor and Public Welfare, including the distinguished chairman thereof, Mr. Williams. approached the leadership urging that there be a week's delay in consideration of the bill so as to accommodate the resolution of the various differences between the two committees, both of which have jurisdiction over this matter. The leadership, reluctantly, but I think wisely. agreed to a delay of 1 week to allow those two committees to attempt to work out the differences between them. As I understand it, a goodly number of those differences have now been resolved by virtue of that week's delay.
Mr. President, now, getting to the request of the Senator from Wisconsin, may I have a restatement of his request?
Mr. NELSON. I asked unanimous consent that at the time amendment No. 497 is offered to amendment No. 496, that amendnent b trptfm a original text.







1596

Mr. ROBERT C. BYRD. Mr. President, reserving the right to objec-t, may I have an understanding of just what the request involvesV AsI understand the request, it would merely mean that the amendment so numbered would be open to amendment in two degrees.
The PRESIDING OFFICER. That is correct.
Mr. ROBERT C. Ba-RD. It would also mean that an amendment offered to the amendment would have 1 hour allotted to it, rather than 30 minutes.
The PRESIDING OFFICER. That is correct.
Mr. ROBERT C. BYRD. I have no objection.
The PRESIODING OFFICER. Is there objection?
Mr. THauRmoND. Except that my amendment would have 2 hours.
MNr. ROBERT C. BYRD. The Senator has 2 hours on his amendment.
ThlePRESIDING OFFICER. Is there objection to the request?
M r. HARTKE. Mr. President, reserving the right to object, I should like to ask this question: What happens to the original S. 4?
The PRESIDING OFFICER. S. 4 remains pending 'until some action is taken. It will be up to the Senate as to whether amendment No. 496 is adopted and whether amendment No. 497 is adopted as amendments to S.4.
M~'r. HARTKE. Reserving the right to object, does the Senator from New Jersey agree with the Chair that the amendment of the Senator from Wisconsin will then be a substitute for S. 4 and for S. 1179?
Mr. WILLAMS. The amendment to be offered by the Senator from Wisconsin, No. 496, procedurally will be offered as a substitute. This is the compromise labor-finance amendment. It will then be original text.
Mr. HTARTKE. Then, 5. 4 and 5. 1179 no longer will be considered on the floor. Is that correct? I am not talking about the l anguage.
Mr. WILLIAms. The substance of each is contained in amendment No. 496, the amendment to be offered by the Senator from Wisconsin.
Mr. HARTKE. Let me ask this of the Chair: Then, are not amendments which are drawn at the present time as amendments to S. 4 or 5. 1179 subject to a point of order because they will not be addressed to the substitute amendment?
The PRESIDING OFFICER. They can be made to conform.
Mr. HARTKE. Can we have in the unanimous-consent agreement the provision that no objection will be raised on the ground of a point of order which was done on a previous measure on the floor of the Senate, when the Senator from Indiana was raising a question, for the very same reason?
Mr. ROBERT C. BYRD~. I do not think the Senator has any need for concern. Any Senator is allowed, under the unanimous-consent request, to offer an amendment. The Senator can offer an amendment which does conform with the text.
The PRESIDING OFFICER. The Chair states to the Senator from Indiana that there will be no problem with respect to that. It will just be a question of changing the section.
Mr. HARTKE. I want to tie that down. In the Cambodia resolution, that is exactly what was done to the Senator from Indiana. A point of order was raised on that technicality, and the Chair sustained tIC objection. Once having been bitten b;y the cobra and saved my life,1 I do not want to go back into that pen a-gain.






1597

Mr. ROBERT C. Bynw. In that instance, there might have been some question of germaneness. As I understand the amendments which the Senator is going to offer to the substitute, there would be no question of germaneness.
Mr. HARTKE. If that is true, why can we not have a ruling from the Chair that no point of order will be raised to these amendments? The amendments I have relate to pension reform. I believe I have been involved in pension reform longer than any Member involved in the compromise. My proposal predates anything in the Committee on Labor and Public Welfare or the Committee on Finance. As the Finance Committee members know, I did participate fully in the modification of the original bill.
The PRESiDING OFFICER. The Chair states that if the amendment would be germane to S. 4, it also would be germane to amendment Noo. 496 or amendment No. 497.
Mr. BENTSEEN. Mr. President, reserving the right to object, I suppose that if anyone has the right to object, it ought to be me because I am the original sponsor of S. 1179. If I thought for a moment that we were considering irresponsible legislation or legislation that had been hastily thought through, I would be objecting at this time. But I have seen that we have been able to profit from the work of the Labor Committee, which has had long and extensive experience in handling such legislation. In my opinion, we have benefited from the experience of the Finance Committee. The way these two committees have cooperated is something which is a highlight in the Senate.
What I am interested in seeing is an effective piece of reform legislation passed. I think that is what we are proposing to the Senate.
The PRESIDING OFFICER. Is there objection to the request of the Senator from Wisconsin?
Mr. ROBERT C. ByRm. Mr. President, I want to make certain that I understand what the request involves. It would merely mean that the amendment by the Senator from Wisconsin (Mr. Nelson) would be open to amendment in two degrees; and that an amendment to an amendment which, under the unanimous-consent agreement, would be allowed only 30 minutes, would in this case, be allocated 1 hour.
The PRESIDING OFFICER. The Senator is correct.
Mr. ROBFT C. Bym. Is it further understood that time on the amendment by the Senator from Wisconsin (Mr. Nelson) would be only 1 hour?
The PPMsMING OFFICEm. The Senator is correct. Mr. ROBERT C. Byim. Perhaps we are laboring under a misunderstanding. This is something that ought to be clarified now. I thought the distinguished Senator from Wisconsin-and perhaps because of some failure on my part to speak clearly-I thought the Senator was under the impression that once his amendment was called up, there would be 6 hours on the amendment. I think the only measure on which there is 6 hours, under the agreement, is S. 4; and when the Senator from Wisconsin offers his amendment, it will come under the unanimous consent agreement allowing 1 hour on any amendment. By virtue of his request, which is pending, there will be no change in the time on his amendment. The amendment would merely be opened up in two degrees and would allow the offerer of the amendment in the first degree 1 hour.







1598
Mr. Cu rs. The Senator's statement is incomplete.
Mr. ROBRT C. BYRD. Let me see if my understanding is correct. The PRFSIDING OFFCER. The Senator is correct.
Mr., CuRns. Is it not true that if it is original text, it can be amended after it has been adopted?
Mr. ROBERT C. Byia. Yes.
Mr. BENTSEN. Is it not also true that the distinguished Senator from Wisconsin would have an hour?
Mr. ROBERT C. BYRD. NO; it could not be amended after it had been adopted, except by unanimous consent. Am I not correct?
The PRnmIsI G OFFICER. The Senator is correct.
Mr. BENTsEN. Is it not also true that the distinguished Senator from Wisconsin will also have 1 hour and a half on the bill itself ?
Mr. ROBERT C. BYMR. I think that is where the confusion has arisen. The Senator from Texas is correct. A little earlier I asked that the majority leader's time on the bill be allocated to the -enator from New Jersey (Mr. Williams) and the Senator from Wisconsin (Mr. Nelson), but that is on S. 4. The two Senators are in control of time on the bill and may yield therefrom. Mr. Nelson would control 1 hour and a half on the bill, and he would control 30 minutes of the hour allotted to his amendment.
The PRESMING OFFICER. The Senator is correct.
Mr. ROBERT C. BYRD. We have been talking about procedure all this time. I ask unanimous consent that none of the time consumed thus far be charged to any Senator in charge of time on the bill. The PRESMING OFFICER. Is there objection? The Chair hears none, and it is so ordered.
Now is there objection tothe request of the Senator from Wisconsin ? The Chair hears none, and it is so ordered. Mr. WmLms. Mr. President, I yield myself 10 minutes. The PRESmING OFFICER. The Senator from New Jersey is recognized for 10 minutes.
Mr. WILLumS. Mr. President, today the Senate begins consideration of S. 4 the Retirement Income Security for Employees Act of 1973, a bill designed to protect the private pensions of American working men and women.
I think its position on the calendar makes it the longest standing piece of legislation on the calendar, second only to legislation from the Committee on Agriculture. It is a subject that has been before the Senate for study for a long, long time.
It is my fervent hope that such long overdue and vital legislation will be passed, and soon take its place among other historic labor protections enacted by the Congress.
If we are to insure that retirement benefits earned by and promised to our workers will really be given to them, then passage of such a measure is essential.
This legislation, cosponsored by 53 Members of the Senate is the product of the most comprehensive study of the private pension system ever undertaken by the Congress.'
This 3-year study was conducted by the Subcommittee on Labor pursuant to three successive resolutions of the Senate, and was undertaken to ascertain the need for statutory protections for workers' pension programs and to formulate appropriate corrective le~islati6n.









The provisions of S. 4 are designed to eliminate the deficiences which our study identified in the existing private pension system..0
Its basic goal is to assure workers that they will receive the promised pension benefits earned for their retirement during their working lives.
This bill responds to the proven need for a comprehensive and meaningful reform of our private pension system.
It proposes fair, feasible, and effective regulatory measures which will fulfill the fundamental purpose of a pension..
For too long and for too many workers, the promise of pension benefits upon retirement has been an illusion and indeed, a hoax.
While there can be no doubt that our private pension system has well served the needs of many workers, our study found that for countless others,. the expectation of retirement benefits has proven to be built on sand.
This was the experience, for example, of Stephen Duane, who worked for 32 years at an A. & P. warehouse in Jersey City.
Because his warehouse was shutdown when Mr. Duane was 4 years short of the company's minimum pension age, he received no retirement benefits whatever despite his long years of service.
A similar experience was recounted by Murray Finkelstein, a New York shoe salesman.
After 20 years in his retirement plan, he lost all his pension rights at age 60 when the Andrew Geller shoe store, at which he worked, went out of business.
The system also failed for Iris Kweck whose employment by Anaconda was terminated after 30 years of service because of a shutdown of its Detroit billing office.
At age 48, she lost all f uture pension rights.
These are but a few of the numerous examples brought to the attention of our committee.
They are in no sense isolated instances, but indeed are all too typical.
They reflect the fact that 23 percent of all workers covered by private pension plans receive no rights whatever until the day they are eligible to retire, and many others must work 16 years or more for the same employer before earning any vested rights. Indeed, two-thirds of all pension plan participants at this moment have no vested right in their plan.
As a result, losses of pension expectations can befall employees in wholesale fashion.
Last year, for example, when a Raybestos Corp. plant in New Jersey closed, up to 900 employees lost not only their jobs but were foreclosed from any future pension benefits, since their plan afforded no vested rights until retirement.
Another reason why so many employees have found their pension expectations to be illusory is that the employer may shut down, and if there are insufficient funds to meet the vested claims of the participants, they have no recourse. no tdbk ro eai n
A classic case, of course, is the shutdownoStdbkrpeais
in South Bend, Ind., in 1963, with the result that 4,500 workers lost 85 percent of their vested benefits because the plan had insufficient assets to pay its liabilities.







1600

While this was a spectacularly tragic instance, it was by no means unique. Last year, for example, P. Ballantine and Sons, a substantial contributor to a multiemployer plan, sold its operations and withdrew from the plan.
Because the plan did not have sufficient assets to cover vested liabilities, several hundred employees, with as many as 30 years service, will lose a substantial portion of their vested benefits.
These, of course, are by no means isolated cases. According to a recently-issued study by the Departments of Labor and Treasury, over 19,000 workers lost vested benefits last year because of the termination of insufficiently funded plans.
Our private pension system is a potent force intrinsically woven into our national economic and social structure.
Having existed in our society for nearly 100 years, pensions have now become a symbol of old-age security for nearly 3.6 million workers-and their dependent families.
The combined resources of existing pension programs are in excess of $150 billion and are, increasing at a, rate well over $10 billion annually.
These assets are the largest single source of virtually unregulated capital in 'our country.
This reservoir of such a staggering sum contains the hopes and dreams of retirement security for the participants who have worked for and are covered by such plans.
S. 4 not only recognizes this, but acknowledges the need for some regulation of these resources.
The simple -fact is that at the present time, there is no law which guarantees that the pension promised in past years, for which -a worker 'has devoted a lifetime of loyal service, will be paid.
It is true that in 1959, following congressional inquiry into mismanagement of funds, the Welfare and Pension Plans Disclosure Act was enacted.
This legislation was intended to assure the honest and reasonable admnisration of private employee benefits in the pension system by requiring plans to'file annual reports of their administration, operations, and financial activities.
Regrettably, however, despite the filing of such reports, the legislation proved largely ineffective even in its limited objectives, because of the absence of enforcement authority.
While reporting requirements did aid the Government in assessing the scope of pension plans, they clearly did not assure workers that their benefits would be protected and provided.
Subsequent amendments to the act, in 1962, which provided penalties for crimes such as embezzlement and bribery involving pension funds, also fell far short of protecting workers in their pension expectations.
S. 4 embodies solutions to the problems documented by the Senate Labor Subcommittee during its study.
The methods utilized by the subcommittee in its study and findings are all matters of public record.
They have been published in reports and disclosed in public hearings conducted here in Washington, and in a number of cities'across the country.






1601

The Pp,,EsmiN(; OFFicFR. The Senator's 10 minutes have expired.
Mr. WILLTAMS. I yield myself 10 additional minutes.
Mr. President, the documented evidence produced by the subcommittee served to highlight the inequities and deficiencies existing in the system which indiv dually or collectively contribute to the denial of workers' pensions.
Our bill was structured to deal with those deficiencies and to safeguard and guarantee the fulfillment of pension promises.
This comprehensive legislation achieves an appropriate balance between two competing schools of thought which emerged during our study.
One advocated stringent Government controls which would substantially divest the private sector of discretion in design and development of pension programs.
The other strongly resisted legislative attempts to impose even minimum measures, claiming these would destroy flexibility and initiative in the formulation of pension plans and deter their development.
This bill secures a promise of retirement security, and yet creates no impediments to the continued growth and expansion of private pensions.
Its objectives and minimum standards are all compatible with flexibility in development.
Its provisions are only minimum standards, and no employer is impeded from building upon or improving these minimum requirements.
Improvement upon the design, coverage, and benefits is a matter of f ree choice by employers.
During its study, the Senate Labor Subcommittee identified specific areas of private pensions which warrant legislative attention.
These relate to the issues of vesting, funding, portability, insurance, fiduciary standards, reporting, and diselosureissues which cover the entire spectrum of the pension system.
Strengthened by an abundance of evidence and documentation, the Senate study established that essential pension reform can be achieved bv:
First. A Federal law establishing minimum standards of vesting to assure that workers receive guaranteed vested benefits after a specified period of work.
Second. A Federal law establishing funding requirements, accompanied by a program of plan termination insurance, to assure that funds are available to pay the vested benefits earned and due to workers.
Third. A program to develop a system of portability and reciprocity among private pension plans permitting the transfer of earned credits f rom one plan to another. M
Fourth. Improved requirements for disclosure, of data reflecting administrating and operation of pension funds, and comprehensible communication of plan provisions, rights, and obligations to participants.
Fifth. Uniform Federal standards of fiduciary responsibility, providing a more stringent code of conduct for trustees and administrators.







1602

Sixth. Appropriate Federal administrative and enforcement authority to assure implementation and observance of the protective requirements.
The first area I cited is that of vesting of benefits. The need for remedial legislation in this area can no longer be a matter of dispute.
Vesting is the right of a plan participant to receive benefits which have been earned by and have accrued to him, even though his employment is terminated before he is eligible to retire.
These vested benefit credits will usually accrue to an employee after he has reached a stipulated age or completed a period of service or a combination of both.
When a worker has vested benefits, even if employment terminates before he is eligible for retirement, the employee will still be entitled to receive those earned benefits upon reaching the normal retirement age.
Without vested rights, should employment terminate prior to the time when he is eligible for retirement, a worker would be entitled to no benefits whatsoever despite many long and loyal years of service.
Notwithstanding claims by opponents that the current trend in pension plans indicate improved and increased vesting provisions, plans with inadequate or nonexistent vesting provisions_ are not uncommon.
In one phase of the Senate Labor Subcommittee study, examination of 1,493 pension plans demonstrated that approximately 23 percent failed to contain any vesting provisions and, as I have previously polinted out, two-thirds of all plan participants now have no vested bnefits.
When faced with these findings, I believe that even the most ardent opponents to pension reform must concede that mandatory vesting in pension plans is essential. The files of the Senate Subcommittee on. Labor overflow with 'examples of men and women who, after devoting a lifetime of work in anticipation of a pension, learned only too late that they would receive nothing because they lacked -vested rights to any benefits.
S. 4 provides that pension plans must contain a deferred graded vesting schedule for minimum benefits.
It would require that after 8 years of service a worker will be entitled to vested rights equal to 30 percent of accrued pension benefits, and thereafter an additional 10 percent annually, so that after 15 years of service, a worker would have a vested right to 100 percent of his accrued benefits.
Most significantly, such vesting requirements would be retrospective in application.
The additional cost from this retrospective vesting is greatly outweighed and minimal when one considers the invaluable assurances which it will provide to our older generation of workers.
While minimum vesting standards represent a promise to pay earned benefits, such promises, of course, are meaningless and empty unless the pension -plan has sufficiet assets necessary to pay the committed benefits.
Accordingly, our bill would establish a general requirement that all unfunded pension liabilities will be completed over a period Of 30 years.






1603

However, the Secretary of Labor is authorized to prit variances from the statutory funding schedule when it can be satisfactorily established that such is necessary to prevent substantial economic injury to the employer.
A necessary adjunct to funding requirements is a program of insurance.
Until a plan has become fully funded, the danger is ever present that should the plan'terminate, plan assets may not be sufficient to meet the benefits owed to the workers.
S. 4, therefore, provides for a mandatory Federal insurance program.
Insurance premiums would be paid by the employer according to the amount of unfunded, vested liabilities.
And the fund formed by these premiums would protect workers against termination of a plan with insufficient assets.
Mr. President, the concept of this type of insurance is not new.
It has long been established and proved effective by such programs as 'Federal Dieposit Insurance Corporation, which protects bank savings.
And just a few years ago, Conigress enacted the Security Investor Protection Corporation, which is a Government-chartered entity to guarantee investors in the stock market against losses experienced by brokerage houses.
These Government insurance programs have been successful and, contrary to predictions by their opponents, have stimu lated and contributed to the growth of the institutions they protect.
I might add that at the present time, no private insurance company offers protection against the risk of pension plan termination, and our bill, therefore, provides for a governmental insurance program.
However) it is entirely possible that at some future time, a role could be found for private insurance in this area.
Another aspect of the Senate study demonstrated that when workers transferred from one job to another, in most instances, the earned pension credits are not transferred from one employment to another.
Outside of multiemployer plans, there is no mechanism today for transferring, earned vested pension credits from one job to the next.
A centralized control or clearinghouse system which can provide for transfer of these credits would clearly serve a most desirable function.
S. 4 provides'for the establishment of such a program by the Secretary of Labor.
It would be a voluntary system, with administrative advantages which should appeal to employees and employers alike and offer sufficient inducement to encourage participation by both.
New reporting and disclosures of pertinent data of the administration and operations of -pension plans are also provided by 5. 4.
Even more important are provisions prescribing the degree of conduct and responsibility which should be required of a fiduciary who exercises a measure of control over plan assets.
These new requirements are accomplished by amendment to the Welfare and Pension Plans Disclosure Act.
The Senate study concluded there is a need for more detailed knowledge of the sizes of plans, their assets, and transactions. and their internal administration and operations.







1604
Increased regulatory control over plans to ascertain such data is certain to serve the best interests of the parties affected.
Financial reports of plans are to include opinions by independent accountants of the plans' financial condition which must be based upon annual audit.
Plans must include in their reports detailed financial information, relating to business transactions and the funding and financial standing of the plan.
Administrators are required to furnish to employees or make available to them reports of the plans' details in a manner calculated to be easily understood.
Employers would also be req ired to inform workers of their rights and obligations under the pension plan which covers them.
As to fiduciaries, the degree of accountability will be increased to that required of a prudent man acting in like circumstances and fiduciaries are specifically prohibited from engaging in various types of transactions which present conflict of interest situations.
One of the first situations we saw in our studies was the United Mine Workers pension plan. The funds were deposited in the unionowned bank and gathered no interest at all. This was the first grievous abuse that the committee discovered.
As a deterrent to mismanagement or irresponsible acts or judgments affecting pension assets, a fiduciary breaching such trust would become personally liable for losses sustained.
S. 4 would empower the Secretary of Labor to seek redress in the Federal courts to compel compliance with the provisions of the act.
For the first time, plan participants would also be given the right to seek appropriate relief in both Federal and State courts against fiduciaries for violations committed by them with respect to a pension plan.
Opponents to pension reform have argued and will continue to argue that enactment of such legislation will permit excessive governmental interference with the private pension system.
This is list plain not so.
Upon ciose analysis, as shown in detail by the Senate study, many plans have already extended their benefits and provisions beyond those prescribed by S. 4.
The provisions I have described would achieve an equitable balance between the interest of employers and the need to protect employees covered by pension plans.
as is qu there
Before closing J should point out that ite well known,
has been a stantial controversy over the most appropriate approach to the administration of iDension reform legislation and, conseqUently, over which committees of Conzress should have jurisdiction respecting the formulation of such legislation.
1,Many i f us have believed that since the whole point of this legislation is to protect the deferred compensation rights earned b workers, the program should be administered by the DiWpartment of Mor and that the Labor committees of Congress should have jurisdiction over the legislation. 0
Others have felt since what little law presently exists concermng vesting and funding is found in the Internal Revenue Code, the tax






1605

writing committees should have jurisdiction over further legislation, and that the Internal Revenue Service would be the appropriate administering agency.
It is cle, lat opponents of reform legislation have hoped, and its supporters have feared, that this jurisdictional controversy would result in an impasse which would prevent any legislation from being passed.
I am happy to report that this has not happened.
Shortly after S. 4 was reported to the Senate, the Finance Committee undertook to fashion reform legislation of its own, and its measure,
1179, was reported to the Senate last month.
The bill reported by the Finan.ce Committee, which reflects all of the basic principles embodied in S. 4, is a most wort4y measure and contains some features which I am pleased to recognize as improvements over our own.
This deliberative time certain ly gave us an opportunity to see iniprovements in the bill as originally reported.
I believe the fullest recognition for this excellent effort should be given to Senator Long, the chairman of the committee, and Senator Bennett, its ranking minority member, as well as Senator Nelson, the chairman of the subcommittee, which conducted the Finance Committee's hearings on this subject, and Senator Bentsen, who introduced -and helped shape the bill the Finance Committee has reported.
Since S. 1179 was reported, our two committees have made extensive efforts to resolve and accommodate those differences of concern and approach which are reflected in the two bills.
Thi's undertaking has been successful, and in the process I believe we have managed to build upon the strengths of each bill al-4 incorporate the best of both.
The resulting product will be offered as a substitute amendment to S. 4, and I shaft join in. urging its adoption by the Senate.
1A closing, I would stress that pensions are not gratuities, like a gold watch bestowed as a gift by the employer on retirement.
They represent savings which the worker has earned in the form of deferred payment for his labors.
Passage of this legislation will demonstrate that Congress is determined to protect these earnings, and restore credibility To the private pension system.
The pension hopes of over 35 million of our workers depend upon this legislation; thev are looking to us to restore their faith, trust, and belief in their pensi &n. system.
They are entitled to help from Congress, and we can no longer deny, 'doubt, or delay the need for this reform.
Our stuffies, have brou(rht to JiLyht a sorrowful segment of our worli:ing population whose expectations of pension benefits have been proven illusory.
The span of a working life does not provide them with a second time around; nor should we in Congress condemn others to a similar fate by failure to act favorably on. this legislation its first time around.
Mr. President, the distinguished Senator from New York (Mr. Javits), the ranking minority member of the Labor and Public Welfare Committee, and I have been concerned about this matter and have







16,06

been working at it over the last several years. Our studies- have'brought out some of the gaps in the present pension plans.
The bill is a product of an effort that I think most workers of this country will consider to be historic.
Certainly, my colleague, the Senator from New York, has been, a tower of strength 'and his understanding of the problems of working people and their pension plans has been very significant in the development of this legislation.
Mr. President, I am happy to yield the floor or yield to the Senator from New York as much time as he requires within the time available.
Mr., JAVITS. Mr. President, having been granted time by the minority side, I yield myself 15 minutes.
Mr. CURTIS. Mr. President, a parliamentary inquiry,
The PRESIDING OFFICER. The Senator will state it.
Mr. CURTIS. Who is in charge of the time on the bill on the minority side?
The PRESIDING OFFICER. The Senator from Nebraska and the Senator from New York jointly.
Mr. JAVITS. Mr. President, the minority whip (Mr. Griffin), as I understood, yielded an hour and a half to me and an hour and a half to the Senator from Nebraska.
The PRESIDING OFFICER. That is correct.
Mr. JAVITS. Mr. President, this is a most auspicious day -for the working people of our country. At a minimum, there are Some 30 million workers affected by private pension plans, and in my judgment that number will be expanded by the provisions of this bill to at least 10 to 20 million more, which would represent a very large majority of the work force of the United States.
It has taken many years to bring this bill to fruition, but it was worth waiting for, for it will, as its title says, at long last give assuranice of retirement income security for the workers of America.,
Also, Mr. President, like my colleague from New Jersey, I wish to signal the fact that this bill is of critical importance to employers and to the health of our country in dealing with a problem which has been so basic to America: the erosion of morale in the American worker, because we think he has not felt an adequate interest in a system which symbolizes the well-being that, typifies our country as far as workers are concerned.
This bill will gro far. We do not claim for a minute that it does everything, but it will go far toward rectifying serious deficiencies in terms of the retirement income which we have made available to our workers.
That said, Mr. President, I join the Senator from New Jersey in- a tribute to the Finance Committee, its chairman (Mr. Long) its ranking Republican member (Mr. Bennett), the chairman of the subcommlitee who held the hearings (Mr. Nelson), and the author of the Senate Finance Committee bill, the Senator from Texas (Mr. Bentsen). I have never seen in all my time here-almost 18 years-a more effective effort to coordinate probably as complex a piece of legislation as we have had to consider in years.
Mr. ROBERT C. B-RD. Mr. President, may we have order in the Senate?
The PIESMING OFMCER. The Senate will be in order.







1607

Mr. JAviTs. A singular dedication to the public welfare was manifested, of a most extraordinary kind. As everyone 'knows, we do not do these things ourselves; it is our staffs who are the heroes in this cease. I wish to pay especial tribute to Mike Gordon, who 'is sitting beside me and is the minority counsel of the Committee on Labor and Public Welfare in respect to pension and welfare matters; to Larry Woodworth, from the Joint Committee on Taxation, as well as the staff of that committee and the Finance Committee; and to Mario Noto, special counsel to the Labor Committee, who for a very long time, until his health prevented him from active participation, was most active. His replacement, Bob Nagle, general counsel to the Labor Committee has provided great service as well. These, I think, were the major hands who did the job and put this together, and 1 think the American workers will be eternally grateful to them for such selfless and self-effacing work.
As to the collaboration of Senator Williams and myself, it.goes beyond just being colleagues. It represented a deep commnitm ent of friendship and understanding of the sort which makes being here and working so hard one of the most exciting' exeinsinmlfad I believe in the life of every Senator. ~xeine nm ie n
In addition, I would like to express my appreciation to each and every member of the Committee on Labor and Public Welfare. They all have participated constructively and vigorously in the bipartisan formulation of a comprehensive, legislative approach to the deficiencies in private welfare and pension plans. The American people owe these Senators a great debt of national gratitude for their contributions in bringing this historic bill to the floor. I would like to take this opportunity to identify the members of the Committee on Labor and Public Welfare-all of 'whom have assisted in this pension reform effort. The other members of the Committee on Labor and Public Welfare are: Jennings Randolph of West Virginia, Claiborne Pell of ]Rhode Island, Edward M. Kennedy of Massachusetts, Gaylord Nelson of Wisconsin, Walter F. Mondale of Minnesota, Thomas F. Eagleton of Missouri, Alan Cranston of California, Harold E. Hughes of Iowa, William D. Hathaway of Maine, Peter Dominick of Colorado, Richard S. Schweiker of Pennsylvania, Robert Taft, Jr. of Ohio, J. Glenn Beall, Jr. of Maryland, and Robert T. Stafford of Vermont.
So, Mr. President, thi s bill1, whatever may be its state in the amendment stage or passage stage, is really a triumph of the legislative art., to say nothing of its being a measure of epochal significance to the American workig people'and I think to the American system.
Also, Mr. President, let me say that we are deal ing here with the beginning, I think, of a true undrstanding of what is meant by the people's capitalism. The fact is that all of us-worker, employer, investor, and citizen-participate in this economy in'such a way as to give us the deepest possible investment in a system which makes all this possible and we make it possible with "f reedom' using that word with full understanding of all the problems which we have, and yet with pride that this is ty all odds still, to this moment, the greatest nation 'of full individual rights and opportunity mankind has ever seen on Earth in all of its history.







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One last word about the Finance Committee's role as it broadened this bill: Perhaps I should not say that, for fear of incurring many more amendments, but it is true that it has broadened this bill in a way in which we on the Labor Committee could not-because it has broadened the opportunities for workers who are not under pension plans to establish their own plans, and it has also broadened the opportunity of the self-employed and those who are high up in the corporate hierarchy to improve their condition. And, though it is very well known that I have strong views, generally described as liberal, respecting the rights of workers and tli eir recompense, I will yield to no one with respect to my understanding of the problems of management, Mr. President and the necessity of getting top-flight corporate managers.
Their benefits and perquisites are greater than that of the rank and file and if 1 know the people of my country, they want, it that way. They want to reward skill, intelligence, and ability, and do not begrudge it at all. That may not be true everywhere in the world, but it is certainly true in the United States of America.
So when we come to those parts of the Finance Committee bill, we will also have to exercise statesmanship and not discriminate against people of skill and talent, who are also entitled to retirement security on the standard of living which they are entitled to, because of their merit, hard work, and ability-all to the benefit of our country.
Mr. President, in "the end is my beginning," 6 years ago-wben I introduced the original bill (S. 1103, 90th Congress) on this subjectI stated that :
... all of these problems are so interrelated that they cannot be solved without comprehensive legislative program dealing not only with malfeasance of administrators, and not only with the consequences of plant shutdowns and plan terminations, but also with the broad spectrum of questions such as adequacy of funding, reasonable minimum standards of vesting, transferability of credits under some circumstances, and, in short, the establishment of certain- general minimum standards to which all private pension plans must conform.
That was 6 years ago. I still believe it to be true and I believe the Members of this bod3 believe it to be true. And now we have the opportunity to act on that belief and American working people have the opportunity to witness that action.
I would like Senators to recall, Mr. President, that I am by no means to be considered the originator or the inventor of this idea. The Senator from Indiana (Mr. Hartke), who is in the Chamber, some years ago and I remember it very distinctly, sought to extend the principle of termination insurance to pension plans. I took a hand in 'saying it was premature because we did not know what we were insuring. He was sympathetic although he felt deeply about what he was doing I am gratified that noNv he, too, is like the rest of us, and he shoulz-4 take great pride and credit from this joint product of our two committees.
The dreams that he had in mind, and his very well-intentioned desire to give minimum protection to workers in a very bad situation were instrumental in bringing us today to our appointment with pension reform Iegislation.
So. Mr. President, I emphasize that, because many people have worked very hard to try to bring us to the happy circumstances we face today-where the fundamenia!!4 premises of this measure-vesting,







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funding, insurance, portability, fiduciary and disclosure standards, and adequate remedies, are no longer challenged. We may differ on details but we differ no more on the approach to solving these problems.
Mr. President, I close as follows:
The fact of the matter is that the private pension plan is a means for transferring g earnings during the working years into income for a decent living in the older years. The worker worksk" for that pension the same way he "works" for his wages or salary and when he does not get it or some reasonable portion of it, he is angry, frustrated, and ultimately convinced that he has been robbed of a material recognition that was due him.
For over the last half-century, public policy has been concerned with relieving oppressive work conditions and enhancing work opportunities. It is but a natural extension of that policy to obtain protection for workers against deprivations of their private pensions. Moreover, the connection between erosion of the work ethic and inequity in private pension plans is quite real and is shown by the overwhelming weight of the testimony to be direct and material. As long as workers remain convinced that the private pension promise is too often unreliable, and that the plans themselves are often arbitrary in their design, they will suspect the employer's sincerity as to their recompense or welfare, and this not only undermines the employer's purpose for maintaining a pension program based on duration of employment but also affects the worker's attitude toward his job.
Private pension and welfare reform legislation is not a panacea for dealing with the more subtle undercurrents of worker unrest; but the enactment of such legislation-if sufficiently broad to encompass the problems which have resulted in undue private pension losses-will clearly establish a more positive climate ofrsetfrIn fimto of, the worker's contribution to our economic progress.
The establishment of this kind of climate is essential if we are goIng to go forward to solve the tremendous problems we have had and maintain during the remainder of the 120th century, our economic growth and build basic confidence in our Nation's ability to compete successfully in the area of international economic rivalry which looms ahead.
Mr. President, it has been a long and difficult struggle, but at hand is the opportunity to humanize the private pension welfare system and to expand -its scope. With the attainment of that objective, everything we have done will be worthwhile.
I hope that every Member of the Senate when, tomorrow night. we come to vote on what I hope will be essentially this bill, will feel great gratification that by this legislation we will have accomplished a tremendous step forward, a tremendous benefit for millions and millions of hard-working Americans, and for their generations to come.
Mr. President, I yield back the remainder of my time.
Mr. 'WILLIAMS. Mr. President, I ask unanimous consent that the distinguished Senator from Alabama (Mr. Allen) may be included as a cosponsor of S. 4.
ThePPXu SMING OF7ICER. Without objection, it is so ordered.
Mr. RiBIcoFF. Mr. President, the time for meaningful pension reform is long overdue. The bill now before the Senate is a critical first

25-028--76-vol. 2-6






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Step toward assuring millions of Americans of adequate retirement
security.
The private pension industry is one of the fastest growing enterprises in America. It has grown from assets of $2.4 billion and coverage of 4 million employees to assets of over $130 billion and coverage of 40 million workers in 1970. Today there are some 34,000 private pension plans in existence.
What, then, is the problem if the pension industry is growing in assets and more people are covered every year?
The problem is that in too many cases for too many people the promise of an adequate retirement pension is illusory.
A 3-year study of the functioning of private pension plans con-ducted by the Senate Subcommittee on Labor disclosed these shortcomings:
Too many workers with substantial service with their employers are well along in years have failed, through lack of reasonable vesting to acquire nonforfeitable benefit rights prior to termination from their jobs.
In too many plans-even if a minority-funding practices in relation to benefit liabilities have been inadequate.
In too many plans--even if a still smaller minority-trust funds, supposedly consecrated to the securing of worker benefits, have been manipulated for alien purposes.
In too many instances the abrupt termination of a going plan, even if well designed and administered, leaves in its wake a trail of bruised or broken pension promises.
The UAW also made a study of plans terminating in the period of 1958-69. That. study's basic conclusions were:
Significant numbers of private pension plans terminate and can be
-expected to continue to do so.
No matter how carefully plans may be negotiated, no matter how roundly conceived and financed, large numbers of persons covered will not receive all-in some instances, any-of their expected benefits.
Frequently, workers with long service who have not reached retiremerit age will receive less than the full amount of their accrued benefits.
It is nonsense to argue, as some critics do, that plan termination insurance is unnecessary because relatively few plans terminate. It is equally true that relatively few airliners are hijacked and relatively few banks fail.
As recently as this week 1 have received letters from constitutents telling their stories of how they lost their pensions when their company went out of business. A major transportation company, C.R. & L. Bus Lines recently went out of business in Connecticut. As a result the employees, many of whom had worked a lifetime for the company, found themselves without a pension. It is clearly unfair to deprive these employees of a pension.
These then are the problems. What can be done about them?
The bill we have before us successfully faces these problems in large measure.
In essence the bill would establish minimum vesting standards to assure that an employee's rights to his pension were fully established after 15 years of service.







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The legislation sets up a plan of termination insurance to assure an employee of his pension if the company goes out of business.
It establishes a mechanism so that an employee can carry his accrued pension rights with him from job to job rather than losing all rights when he switches employment as is the case today.
And it sets up standards of funding and fiduciary responsibility to assure that there are adequate moneys in the pension fund and that
-they are invested and administered wisely.
These basic elements of pension reform. will help to assure millions
*of workers of their rights to pension security. At the same time the legislation will do nothing to discourage the development of a heal thy pension industry.
I hope-my colleagues will approve this legislation without delay.
Because of the complex nature of the legislation I would like to explain the basic provisions at some length.

ELIGIBILITY AND MINIMUM VESTING STANDARDS
The bill we approved stated that no qualified pension plan would be permitted to require, as a condition of eligibility to participate in
-the plan, a period of employment longer than 1 year, or attainment of
-an age greater than 30, whichever occurs later.
The committee approved a minimum vesting standard, establishing the minimum peri-od. of employment within which a pension plan must grant a participant in the plan a specific vested right to pension ibenefits-a vested right to a pension benefit here refers to an employee's
-right to draw a specified pension benefit beginning at the normal retirement age, which right may not be taken from the employee for any
-reason other than the employee's failure to live to such retirement age. .Under the committee-approved minimum vesting standard, the plan ~must provide a plan participant who has been employed for 5 years With a vested right to 25 percent of the pension benefits that he has ~Accumulated. For this purpose, employment both -before and after the employeee became a plan participant is counted in determining the tim e at which the employee has met the 5-year requirement and become entitled to 25 percent vesting. The required vesting level of 25 percent is increased by 5 percent for each additional year of plan participation until the employee becomes entitled to 50 percent vesting. for example, after 10 years of employment and 5 years of plan partici pation. The required vesting level of 50 percent is then increased 10 percent a year for each additional year of plan participation, so that 100 percent vesting is req-auired after 15 years of employment and 10 years of plan participation.
For example, an employee who begins work for an employer at the age of 24 must, when he attains the age of 30, become eligible for participation in such employer's pension plan, and be given a 25 percent vested right in any pension benefits he earns during his first year of participation. Assuming the employee continues in employment untilI shortly after his 35th birthday and terminates his employment at that time, the plan must, provide such employee with a vested right to 50 percent of the pension benefits he hats earned while a participant f rom his 30th birthday until after his 35th birthday.







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The general effective date of the minimum vesting standard is January 1, 1976, and the minimum standard is to apply to employment service prior to the effective date as well as to future service. In the case of plans adopted after enactment, h effective date is 1 year after date of enactment. In cases where existing pension plans were the subject of collective bargaining, the new rule would not become applicable until the present collective bargaining agreement terminatesprovided such agreement is due to terminate within 5 years after date of enactment. Plans which provide for full 100-percent vesting at the end of 10 years of coverage will be exempted from compliance with the new standard for a period of 5 years.
The committee reviewed the present law eligibility and vesting rules applicable to employees covered by the H.R. 10 type plans-that is the requirement of eligibility after 3 years of service with immediate 100percent vesting-and determined the present rules more adequate.
The committee also agreed to an amendment which would permit, under certain circumstances, the disregard of employees covered under a collective bargaining agreement in determining whether a proposed pension plan covers the necessary percentage of employees. The cir'cumstance permitting such disregard is that there is some specific evidence that the union representatives rejected pension benefits in the course of collective bargaining.

MINIMUM FUNDING STANDARDS
The committee agreed to a minimum funding standard which requires the payment of current or normal pension costs and the level payment, or amortization, over a 30-year period of unfunded accrued liabilities, without regard to whether such past service liabilities are vested or unvested. A plan amendment resulting in a 5-percent increase in unfunded past service cost existing at the time of the amendment is to be regarded as a "substantial" increase in unfunded past service costs which may be treated as a new plan and funded over 30 years.
The committee agreed that an "experience deficiency," which is a loss due to actual experience under a pension plan that varies from the actuarial assumptions entering into the. determination of the plan cost, must be. funded, or made up, over a period of 15 years or the average remaining working life of the covered employees, whichever is the shorter period. Experience or actuarial gains, attributable to a favorable variation in actual experience compared to the actuarial assumptions entering into determination of plan costs, are to be taken into account over the same period, that is the shorter of 15 years or average remaining working life of the employee group. In this connection, the committee agreed that assets of pension funds should be valued on the basis of a 5-year moving average.
The committee agreed to grant the Secretary of the Treasury authority to establish qualifying standards for actuaries and to certify actuaries for practice before the Internal Revenue Service. It furth er provided for the creation of an Advisory Board of Actiiaries, to assist the Secretary in evaluating actuarial problems. Certification of pension plans by actuaries every 3 years, or more frequently if the Secretary deems it desirable, and notification of change of actuaries by plans








and reasons theref or, are additional provisions to which the committee agreed.
In the case of multi-employer plans, the committee agreed that where the new minimum standards result in an increase in annual costs of 10 percent or more, the Secretary could allow past service costs existing on the effective date to be funded over a specified longer period.
The committee agreed to continue present law funding requirements-that is, contribution of normal costs plus interest on past service costs--in the case of Federal, State, and local government pension plans. However, the committee directed the Treasury to make a study of the funding of Government pension plans.
The committee agreed that plans funded exclusively by the purchase of l evel annual premium insurance contracts would be deemed to comply with funding requirements if the insurance company is licensed to do business in the State where the employer is located. The committee agreed that the Secretary should be permitted to waive the minimum funding requirement in cases involving financial hardship to the employer, with a proviso that the waived contribution must be made up in level payments over the next 10 years. However, not more than five such waivers may be made in a 10-year period. And, upon termination of a plan due to circumstances such as inability of em plover to make contributions, the plan would continue to be treated as tax-exempt.
If the employer fails to meet the funding requirements, and does not obtain a hardship waiver, the committee agreed to impose an excise tax of 5 percent of the amount by which the employer failed to meet the minimum funding contribution. An additional excise tax of 100 percent is imposed to the extent the employer fails to make the required con tribution within 1 year of the due date. A similar excise tax is imposed where an employer fails to make the contribution required by the f ormula, to a profit-sharing or money-purchase plan.
The effective date of the minimum funding provision is January 1, 1976.
PORTABILITY
The committee agreed to provide a mechanism for a voluntary portability program for vested pensions. Under this program., a central portability fund would be established to receive dep osi ts of moneys representing an employee's vested rights when he is separated from an employer prior to reaching retirement age. The employee's interest in the portability fund could then be transferred to his next employer's pension fund. In each case the transfers are dependent upon the voluntary agreement of the first employer, the employee, and the subsequent employer to participate in the portability provisions. The committee agrreed that the central portability fund should be a private corporation under the trusteeship of the Secretaries of Labor, Commerce and Treasury, with the Secretary of Treasury being the managing trustee.
The committee also agreed to require employers to not fythe Social Security Administration upon termination of employment by an employee with a vested pension right, so the Social Security Administration can maintain a lifetime record of an employee's vested pension







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rights and the current address of the pension fund. liable, to, pay such, pension.
PLAN TERMINATION INSURANCE
The committee agreed to a program of plan termination insurance.. The program would bie administered in the same fashion as the central portability fund described above. It was agreed that the pension benefit insured would be the vested benefit provided for under the plan, up to 50 percent of the average monthly wage in the last 5 years, but not more than $750 a month. The $750 figure would be adjusted in accordanice with changes in wages taxable under social security.
The premium would be 50 cents per pension plan participant,. payable by the employer. This premium would apply for a 3-year period. and at the end of this period the manager of the fund could change the premium based upon experience.
The insurance protection would not apply until a plan had. been inoperation for 3 years and would not apply to increases in benefits under amendments which had not been in effect for years prior to termination. The insurance would apply, however, to vested benefits earned, prior to, as well as subsequent to, the effective date of the act.
Under the proposed insurance plan, the employer would generally be liable for 10 percent of the losses due to inadequate funding upon termination of his plan, with a limitation that such liability could not exceed 50 percent of the net worth of the employer at such time. Such liability would be subordinated to other creditors. The employer would be given the option of avoiding any personal liabiliyby ageen to pay a higher premium, the amount being 20 cents more per plan, participant-making 70 cents per plan participant in total rather than 50 cents. In this case, the insurance would apply only after the plan had been in effect 5 years and, in case of any plan amendment liberalizing benefits, only after 5 years. The managing trustees are given the authority to make a separate charge for and keep a separate account for multi-employer plans, if deemed desirable.
To avoid abuse, pension plans are required to first repay employee contributions, and then to pay out insured benefits. The insurance fundwould be liable only if the pension funds were inadequate to meet such obligations. Other technical amendments are provided.
The effective date of this provision is to be January 1, 1975, as to the organization of the program and payment of premiums. Losses due toterminations occurring 3 years after registration of a plan in the insurance program are insured.

FIDUCIARY STANDARDS
The committee agreed to the establishment of fiduciary Standardswhich, are essentially the same as the definitions of "prohibited transactions" set forth in S. 4 and S. 1557. "Prohibited transactions" refers generally to transactions which fiduciaries should not engage in. However, the committee believed that enforcement of compliance with these standards could better be achieved by the imposition of excise taxes iin cases where there, is ,a violation of the rules prohibiting. such- transactions. The excise, tax is 5 percent initially and upon failure of the party-







1616

involved to make corrections within a stated period, the tax may go as high as 100 percent. Essentially, the sanctions imposed upon "1fiduciaries" and "'parties in interest in relation to pension funds are simiJar to the sanctions imposed by the Tax Reform Act of 1969 upon, foundation managers and disqualified persons in the case of transactions involving private foundations.
*.The committee agreed to prohibit the investment of pension funds in employer securities, but provided that this rule would not apply to present holdings of employer securities by pension funds. The committee also agreed to limit investment in employer securities by profitsharing' trusts to 10 percent of trust assets in those cases where the employer securities are not readily tradable on an established securities market, but provided this rule would not apply to present holdings of employer securities. For this purpose, employer securities sold in an over-the-counter market are regarded as readily tradable on an established Securities market. The committee agrreed it was inappropriate to place any limitation on investment in employer securities in the case of stock bonus plans.

ENFORCEMENT PROCEDURES
The committee agreed to provide for the establishment with the Internal Revenue Service of a separate office, headed by an AssistantCommissioner of Internal Revenue, to deal primarily with organizations that are or claim to be exempt from income tax under section 501
(a) of the Internal Revenue Code-including pension and other trusts; religious, charitable, educational, et cetera, organizations; and others described in section 501 (c) of the Code. The committee agreed to impose on employers an excise tax, essentially an audit tax, equal to the number of his employees covered by qualified plans times $1. The revenue raised by this tax and one-half of the revenue raised by the 4-percent excise tax on private foundations should reimburse the Government for the cost of regulating these organizations.
Since under present law the employer can appeal an adverse pension plan determination by the Internal Revenue Service to the Tax: Court only after a plan contribution has been made and the contribution deduction disallowed, the committee agreed to provide a procedure for obtaining declaratory judgments. Under this procedure both the employer and the employees may appeal to the Tax Court for a, review -of an Internal Revenue Service determination letter and request a declaratory judgment as to the status of the plan or amendment. In addition, provision is made for appeals to the Tax Court and other Federal courts in the case of proposed excise taxes based on alleged violations of the fiduciary standards, and on other questions involving plan qualification.
The committee agreed to provide for the availability of arbitration services by the National Mediation Service in cases involving class actions affecting the qualification, administration or operation of qualifled pension plans. The committee further agreed that Commissioners of the Tax Court of the United States should provide low-cost arbitration services in the case of disputes involving claims of individual participants in pension plans.






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INDIVIDUAL RETIREMENT PLANS
The committee approved a new deduction for contributions to individual retirement plans to be available only to those persons not covered by qualified pension plans established by corporations, selfemployed persons, or Federal, State, and local govermental units. The deduction would be limited to $1,000 a year and, while there is no percentage-of-earned-income limitation on the deduction, the tax ayer must have earned income. The individual retirement plan would be similar in many respects to a self-employed plan where there are no employees. However, it is contemplated that the Federal Government will offer retirement savings bonds designed to meet the needs of persons saving for retirement under these plans.
SELF-EMPLOYED (H.R. 10) PLANS--LIMITS ON CONTRIBUTIONS
The committee agreed to raise the limit on contributions to selfemployed (H.R. 10) pension plans, while at the same time making such increased limitations applicable to corporate pension plans in which the owner-managers have a significant interest.

LIMITATION ON CONTRIBUTIONS FOR OWNER-MANAGERS
S. 1179 provides that retirement plan contributions on behalf of such owner-managers, referred to in the bill as proprietary employees, are to be subject to the same limitations as apply to the self-employed plans. Under S. 1179, deductible contributions to a self-employed )lan are permitted equal to 15 percent of earned income up to $100,000, but not in excess of $7,500. The committee agreed to an amendment which would delete the contribution limitations on proprietary employees in S. 1179 and substitute therefor a rule expressed as a limitation on the stated pension benefit which may be provided a proprietary employee. The limitation is that the pension of a proprietary employee under a plan shall not exceed 75 percent of the average of the employee's highest 3 years of compensation, with a limitation that average compensation in excess of $100,000 will be disregarded.
Hence, the maximum pension benefit permitted a proprietary employee is $75,000. This maximum benefit is to be funded over the remaining working life of the employee, but may not be funded over a period of less than 10 years. In the case of a Profit-sharing or moneypurchase plan, the amount contributed on behalf of a proprietary employee would be subject to limitations corresponding in substance to the limitations on contributions on behalf of proprietary employees under a stated benefit plan.
JOINT AND SURVIVOR OPTION
The committee agreed that a qualified pension plan must include a provision allowing an employee-partici.ant a choice between having his pension benefit paid out as a single life annuity over his lifetime or having a reduced annuity for his lifetime with a survivor's annuity being provided his spouse, if she should survive him.






1617

MONEY 'PURCHASE PLAN LIMITATION
The committee agreed that contributions to a money purchase pension plan on behalf of an employee should be included in such employee's gross income to the extent that such contribution is in excess of 20 percent of the employee's compensation.

LUMP-SUM DISTRIBUTIONS
The committee agreed to a new tax treatment of lump-sum distributions received by an employee from a qualified retirement plan on termination of employment. Under the new provision that portion of the distribution representing pre-1974 value would receive capital gain treatment. The balance of the distribution, in excess of basis, would be subject to tax as though it were equal to the taxable income of a separate taxpayer, but with 15-year averaging; that is, compute tax on one-fifteenth of the balance of the distribution as if the taxpayer had no other income and no deductions, multiply the result by 15, and add this to the employee's tax liability computed without taking into account such portion of the distribution. A special lower income allowance adjustment is provided to insure that the tax of lower income taxpayers on their lump-sum distributions will generally not be more than it would be under present law. The lower income allowance for this purpose will be about $10,000 and will phase out gradually in the case of lump-sum distributions in excess of $100,000.
Mr. M-oss. Mr. President, one of the most significant developments in the recent postwar era in the United States has been the tremendous growth of the private pension plan system. There are now 34 million Americans participating in such plans-which is seven times the nuniber enrolled in 1940.
The concentration of wealth represented by these plans has grown even more rapidly-from $12 billion in assets in 1940 to more than $150 billion today.
The private pension plan system has become an essential feature of our social and economic order. In fact, when you consider that social security has always been intended to provide only supplemental retirement income, it is clear that private pensions remain the primary means by which our society provides economic security in old age.
Given the immense importance of the private pension program, I believe it is also apparent that up until now we have not provided sufficient regulation to make certain that the program does, in fact, provide the security that it promises. Senator Javits, who has performed a great service on the Labor and Public Welfare Committee in the area of pension reform, has stated that private pension funds represent "the largest concentration of wealth with the least regulation in the country."
The lack of regulation for the current system has led to one glarig abuse: many people who pay money into pension funds, on the expectation of retirement income, end up receiving no benefits whatsoever.
There are a number of reasons for this inequitable-and often tragic-situation. In our highly mobile society, many people change jobs before accruing the time required to be eligible for retirement






1618

benefits. Others become disabled before they reach the necessary age. Others are laid off, and still others lose out when their employers go out of business. In addition, there are many instances where pension funds have been mismanaged, resulting in an insufficient amount of funds to cover all the claims.
Quite simply, those Americans covered by private pension plans do
-not have the assurance that they will, in fact, receive a pension when they retire.
[ believe that the legislation we are considering here today will go a long way toward providing that assurance. In fact, I believe that it
-will be considered landmark legislation. The members of the Finance Committee and the Labor and Public Welfare Committee who have
-worked long and hard on the bill are certainly to be commended.
I know that several provisions in the bill have stirred considerable controversy-particularly the one concerning the limitation on the deductible contribution for owner-managers. Some limitation is obviously necessary--for otherwise we would permit an enormous tax loophole. But I hope we can agree on a limitation that is fair and
-equitable-one that would permit owner-managers to set aside adequate pension contributions in their high income years.
The bill also sets forth a minimum vesting standard for pension funds, and I believe the arguments for these particular provisions are overwhelming. This portion of the bill gets to the heart of the prob-lem with the current system. Under the proposed minimum vesting a. person who has 5 years of employment will be entitled to at least 25 ,percent of his benefits upon retirement, and the amount of vesting will increase with every subsequent year. It no longer will be possible for a person to pay into a plan for many years and then receive no retire,ment benefits because he must leave his job before he has reached the required age or before he has accumulated the required years of service.
I also believe there are compelling arguments for the minimum funding standards and enforceable fiduciary standards found in the bill. In the past, pension funds often have come up short because they
-have not been established according to reasonable actuarial standards. The funding provisions in this bill will make it far more certain that pension funds will have enough money to pay off, over a period of time, all claims earned under the plan. The fiduciary standards set out in the bill are equally important as a guard against mismanage,ment. Pension managers have not been above investing funds in their trust for their own gain rather than the gain of the beneficiaries.
In addition, the bill provides for a new deduction for persons who are not covered by qualified pension plans. This provision, together with the raising of the limitation on the contribution to self-employed plans, will create welcome new incentives. These provisions almost certainly will have the result of extending pension coverage to those who previously have not been covered.
Mr. President, let me state my strong support for this bill to reform the Nation's private pension plan system. In the course of our discussion we undoubtedly will want to make some amendmeints, but I beI ieve that, in sum, this is a very good piece of legislation.







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It should be emphasized that the bill does, not represent a case of Congress med dling in the private sector, or thrusting the Federal Government into a new area of economic activity. For despite the l ack of adequate regulation, the Federal Government is already heavily involved in the private pension-system. The tremendous growth of the private programs has been possible only through the use of Federal tax incentives. Private pension plans are subsidized through tax deductions to the tune of some $3 billion annually. In reality, the private pension system represents a joint effort by employers, employees, and the Federal Government to provide retirement security for a large number of Americans.
The true cost of this legislation is minimal. In fact, it will result in ai great savings for the Federal Government. If the private pension system can be made responsive to the needs of its beneficiaries, and if its coverage can be extended, there will be far less pressure on social security and the various types of public welfare. In recent years, many retirees have come to depend almost entirely on social security, even though the program was originally intended to provide only supplementary retirement income. This dependence on social security has been due in large -part to the failure of the private means of providing retirement security.
Mr. President, there is no question as to whether this Nation is able to afford this legislation. In my view, we can ill afford not to pass it.
Mr. BEALL. Mr. President, as a cosponsor of S. 4, the Retirement I ncome Security for Employees Act of 1973, I rise in support of pension
-reform legislation. For the working men and women of this country, this may be the most important measure in the Congress. This measure mnay determine whether individuals who have labored a lifetime will realize a retirement with independence, dignity and reasonable comfort, which they have earned.
We as a nation can and should be proud of the remarkable growth in the private pension system. Today over 30 million workers partici-pate in private pension programs. A little over 30 years ago, over 4 million employees were covered. This number more than doubled to 9.8 million by 1,950 and increased to 21 million in 1960. However, while the total number has increased rather rapidly, the total, as a percentage of the country's industrial labor force, has increased only modestly since 1960, from 42.4 percent to 48.3 percent. This contrasts with the percentage growth during the 1950's, which saw the percentage increase from 22.5 percent to 42.4 percent. .It is estimated that this growth will continue and that by- 1980, 42.3 million employees will -be covered. Total assets of the pension plans which h ave grown from $2.4 billion in 1940 to $150 bill Iion today,
-are expected to exceed $250 billion by 1980.
'While this progress has been impressive, there remain'serious prob-' lems. This legislation seeks to remedy some of these deficiencies. In ,order to do this, the bill establishes rea,,,son able rules and standards. I am conVinced that this leg-islation is in the best interest of~ Americ~in Industry, labor, and most importantly, in the interest of ourpol.
The legislation would attempt to correct present abuses as follows: First, the bill provides reasonable rules for vesting. Vesting refers to a nonforfeitable righbt which an employee acqjuires in a pension f und.









This means that an employee will have the right to receive benefits, after a reasonable number of years,.if he leaves or loses his job, before retirement. This provision, in addition to protecting employees, provides employees with greater freedom to move. from employer to employer to improve his status, without fearing loss of 'retirement benefits.
Equally important, reasonable vesting rules will give employees the needed mobility for the effective operaions of our labor market. lIt is estimated that 13 percent of private pension plans do not contain provisions requiring vesting of benefits to employees pirto retirement.
Second, the legislation would require adequate funding of pens ,ion plans. When we speak of funding, we mean the accumulation of assets to pay benefits in the future to covered employees. Standards for adequate funding will help to assure that funds will be available to *pay employees the funds owed to him. Without adequate funding, a vested pension may prove-to be "illusory and empty."
Third, the bill would provide for a reinsurance program to take care of those cases whereby a plan is terminated as a. result of a business going -bankrupt, moving, or for other reasons. Th 'e Studebaker case in 1964 was the most dramatic evidence of a deficiency in this regard.
Fourth, the measure would encourage portability. While this fe-ature would be purely voluntary, it would, if utilized, enable employees to transfer earned vested pension rights from job to job and perhaps at the: close of his career, to convert all such credits into one retirement check.
Fifth, the legislation elevates fiduciary standards and improves disclosure. There have been some cases of extreme misuse of pension. funds. In addition to establishing higher standards for the administering and for those who administer pension funds, the measure woul d improve the watchdog role of the Federal Government and strengthen its enforcement powers to prevent and correct abuses.
Sixth, the pension legislation would also encourage, through our tax laws, individuals who are not covered by private pension plans to set aside a portion of their income for their retirement years and also increase incentives for the self-employed. I believe these provisions are of utmost importance.
Mr.. President, during my work on this legislation, I became acquainted with the unique pension problems of certain highly mobile individuals. This would include engineers, scientists, and other technical personnel, architects, and teachers. They are often victims of a very high pension forfeiture rate.
I had the pleasure of participating during the last Congress, in a mass rally held by the area engineers at the Goddard Space Center at neary Greenbelt, Md. Both S. 4 and S. 1179 contain creative provisions in response to the unique problems of these highly trained and highly mobile men and women. Specifically, they provide for a technical amendment permitting tax qualification of a multi-employer pension plan with immediate vesting. This provision is patterned after the highly successful TIAA/CREF plan that has afforded full pension portability to college professors for over 70 years. An amendment requiring a change in Federal procurement regulations to protect pension forfeitures when Government procurement objectives change. An amendment requiring the Labor Department to undertake a study to






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see what additional protection might be needed for highly mobile employees.
1 strongly support these provisions and hope that they will be inclided in the final bill enacted by Congress.
Mr. President, I am impressed that private industry, labor unions, and other parties involved in the private pension system have for the most part recognized the need for and equity of this legislation. They recognized this notwithstanding the fact that additional costs will be involved. However, the costs to American workers, when earned pensions are denied, are unbearable.
This legislation is important for another reason. There is considerable concern in the country with respect to the rising social security taxes. Social security was designed to be a floor for retirement. Yet, when individuals have inadequate retirement, as many in our country do today, there is considerable pressure, and understandably so, for increasing social security benefits. The bill today will be to make the private pension system work and to make certain that the social security system will continue to supplement and not supplant the private pension system. I personally believe in the long run that this is both good for the country and for our citizens.
Mr. President, I would not want to see this bill pass without calling to the Senate's attention the most serious problem facing pensions in thIs country, both public and private.
I am speaking of inflation. If we do not make progress in our battle against inflation, our efforts today in improving our private pension system will be undermined. Until we bring inflation under control, today's and tomorrow's retired citizens will continue to be threatened and suffer difficulties. This point also serves to stress the need for congressional action on budgetary reform. This also, in my judgment, is a must measure.
I urge the Senate to approve this measure overwhelmingly and hope that early agreement will be reached with the House.

AMENDMENT NO. 496
MNr. NELSON. Mr. President, on behalf of myself and Senators Long, Bentsen. and Bennett, I offer amendment No. 496 and ask unanimous consent that the amendment be agreed to at this point, and, as agreed to, be considered original text for the purpose of amendment; and that the 1 hour for debate on the amendment remain available; and that the text of the amendment be printed in the Record.
The PRESIING OFcER (Mr. CHILES). Is there objection to the unanimous-consent request of the Senator from Wisconsin? The Chair hears none, and it is so ordered.
(The text of amendment No. 496 in the nature of a substitute, as agreed to. appears on pp. 1271-1497.)
M 1r. NEL'oN. Mr. President, the need for private pension legislation has been driven home for many of us by specific cases we know about where clearly what was right did not prevail. One example of this type which has been called to my attention is that of a Mr. Robert Pratt of Hudson. N.Y.. who in 1971 was laid off by his employer, the GiffordVood Co. Mr. Pratt had worked 47 years for this company and was to retire within 1 year at the age of 65.






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In June 1972; Gifford-Wood was sold to another.firm, and. its persion plan was terminated-3 months before Mr. Pratt's 65th birthday. When he applied for retirement benefits, it is my understanding that' Mr. Pratt was told he would receive nothing although he had 47 years of service.
Perhaps the most famous failure of all in the private pension system occurred in 1964, when Studebaker closed its plant in South Bend, Ind. In this case, 4,500 employees lost 85 percent of their earned pension benefits. This was an economic catastrophe to the individuals involved and to the entire community of South Bend.
Each of us has specific cases in mind where some aspect of the private pension system has not worked the way it should. Despite this, we all know that the private pension system has done a world of good for hundreds of thousands of retired employees. Our job., therefore, is not to castigate the private pension system but to provide legislation improving it.
That is our purpose here today. In this case, we have two committees who have worked long and diligently in providing badly needed reforms for the private pension system. I am referring to the Laborand Public Welfare Committee and to the Finance Committee. The Labor and Public Welfare Committee has worked in this area for a considerably longer period of time than has the Finance Committee and has clearly done the pioneering in this regard. Chairman Williams and ranking minority member Javits, especially deserve praise for their diligent work in this regard. Nevertheless, the Senate Finance Committee also has worked intensively in this area, particularly in the legislation it has reported this year.
The Finance Committee bill, which from the standpoint of our committee was developed first by the junior Senator from Texas (Mr. Bentsen), took full advantage of the intensive study and research carried on by the Senate Labor and Public Welfare Committee. In fact, in many cases, our legislation is built on and in many respects is similar to the bill, S. 4, reported by the other committee.
We believe, however, that in a number of respects there are certain advantages in the Finance Committee bill. I say this because we were able to take advantage of tax provisions in providing for the administration of the pension standards.
There already are a substantial number of professional persons in the Internal Revenue Service who devote virtually full time to the administration of existing law relating to pensions-this is a group of over 400 experts. Present law already requires the Internal Revenue Service to administer antidiscrimination rules with respect to pensions and also funding requirements-although they are much too limited. In addition, it is necessary in some cases to enforce vesting rules in order to give assurances that the plans are not discriminatory in favor of highly compensated employees. Limited rules relating to fiduciary responsibility, although of too restricted application, are also enforced through the Internal Revenue laws.
Because we believe that the administration of many of these provisions-although as I will point out in a moment not necessarily all-can best be handled by the Internal Revenue Service, we have developed a bill, S. 1179, as amended by the committee, which takes a quite







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different approach 'from S. 4 insofar as 'the administration of the pension provisions are concerned.
.Despite the difference in the administrative procedures followed by the two bills, the basic minimum requirements which the two hlas provide for private pension plans are very similar. In some cases they are the same. On occasion, the Finance Committee bill provides a higher level of requirements than S. 4 and sometimes S. 4 provides thehigher level.
Many of us on both committees felt that it would be a shame when, we have two such good bills, for the possible competition of one with the other to result in the killing of pension legislation this year when it is so badly needed.
Mr. President, because of this, Chairman Long, Senator Bennett, Senator Bentsen, and myself have met with the Chairman of the Labor and Public Welfare Committee, Senator Williams, and the ranking minority member, Senator Javits, to see whether it would be possible to work out the differences in. the two bills.
I am glad to say that this has been a successful effort. The staffs. of the t ,wo, committees, working under our direction, have developed a compromise position which I shall offer as an amendment to S. 4 as reported by the Senate Labor and Public Welfare Committee.
This amendment deals with all of the subject matter presently in S. 4 except that it makes no changes in the 5. 4 provisions relating to reporting and disclosure. In addition, the Finance Committee bill, S. 1179, contains a series of tax provisions relating to self-employed individuals, proprietary employees, the tax treatment of lump-sum distributions, and provi sion for a $1,000 set-aside for those not covered by, any present retirement plans. These provisions relate to matters which are not in S. 4 and will not be presented in the amendment I plain to offer. A version of these provisions will, however, be offered subsequently. I might say, however, that what the Finance Committee considers to be the controversial aspect of these tax provisions was removed by the Finance Committee when it reconsidered these provisions this last Friday. But, in any event, these tax provisions are not in the amendment which I am offering at this time.
I shall ask that the amendments 'I am offering, because they are extensive in nature, be considered as original text so the Members will have full opportunity to offer amendments to them. It is my understanding that the debate on the bill will not be finished today so that there will be an opportunity for the Members to consider possible modifications in these provisions tomorrow if they would like to do so.
In very broad terms, the amendment that I shall offer in the areas of enforcement, vesting, funding, and portability follow the general format of the Senate Finance Committee bill, S. 1179 as amended. HoweverI in a number of respects, these provisions have been modified to take into account specific problems dealt with in S. 4. In any event, these provisions although technically using the language of 5. 1179 do not differ greatly-outside of the difference in the enforcement provisions-from the provisions of S. 4.
Let me turn first to certain overall administrative 'aspects with respect to pension systems provided in the amendment which I am offering at this time. One of the problems with the present administration







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of. the pension provisions,- it has% ben sggetdi the fact that the work tends to be spread throughout the entire Internal Revenue Service in the different branches without concentration of the many specialists in a single unit. The advantage of a single unit lies in the fact that more experts in this particular field can be developed in this manner and more attention can be paid to being sure that plans meet the standards specified, rather than in devoting attention largely to the tax collection problems involved. As a result, the amendment follows the provisions of S. 1179 and would create within the Internal Revenue Service a new office of Assistant Commissioner for Employee Plans and Exempt Organizations.
This office. will have the responsibility within the Service for enforcing' requirements with respect to pension plans and also with respect to charitable foundations and other exempt organizations. This new office should improve the administration of tax laws on pensions by in effect putting all of the pension specialists under a single roof. To7 finance the cost of administering the retirement plans as well as exempt organizations, the amendment, like S. 1179, imposes a $1 audit fee excise tax and authorizes the appropriation of receipts from this tax-as well as one-half of the 4 percent excise tax on investment income of private foundations-to be devoted to the administrative costs of this new office.
Also, like S. 1179, the amendment requires administrators of qualifled plans to file an annual statement which will be turned over to the Social Security Administration, indicating the pension rights of those who are leaving employment with an employer. Under the amendment a further modification is made-a copy of this certificate will also lie given to the departing employee. This information will be used eventually to notify the former employees as to their pension rights when they reach retirement age. It should be noted that this is a time when, in any event, they will be contacting the social security offices in order to find out the size of their social security benefits. This will be a convenient reminder to them of their private pension benefits.
The provisions I have described up to this point are in S. 1179 but not in S. 4.
Let me turn now to the participation or coverage provisions and the vesting provisions which do appear in both bills and which are quite similar.
Both bills agree that the standards for coverage and particularly for vesting-that is, when an individual's rights to a pension become nonforfeitable-must be raised. At. the present time, except where vesting rules are necessary to prevent discrimination, there are no requirenents that an individual's rights to a pension vest before retirement. In fact, many pension plans do not provide for vesting until retirement age is reached with th~e result that when an individual's employment is terminated before retirement age, he may lose all of his rights to a pension plan.
Insofar as coverage under a pension plan is concerned, S. 4 requires coverage be offered to an employee who has had 1 year of service and is 25 years of age or older. 5. 1*179 also provides for coveragep after 1 year of service but only if the individual is age 30 or over. HNowever, S. 1179 has a "1look-back" rule which brings the two plans much closer together. Under this provision, once an individual reaches age 30, if







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he has been working from age 25, he can take this 5 years into account for purposes of the vesting rule. For those who continue to work until age 30, this means that in practical application, the effect of the two bills is substantially the same.
This amendment follows the basic coverage rule in S. 1179.
The basic vesting rules of the two bills also are quite similar. S. 4 provides for 30 percent vesting after the end of 8 years and full vesting at the end of 15 years. S. 1179 provides for full vesting at the same time, namely at the end of 15 years. However, it provides7"that vesting must begin somewhat sooner than under S. 4. The vesting under S. 1179 must be at the 25 percent level by the fifth year. The amendment which I am offering follows the basic S. 1179 rules in this respect. It is my understanding that this is wholly satisfactory to the sponsors of S. 4*
At the same time, the amendment incorporates certain aspects of the S. 4 rules. For example, S. 4 provides that as an alternative to its basic vesting rule, a plan will qualify if it provides 100 percent vesting at the end of 10 years, rather than gradual vesting beginning earlier and being completed at the end of 15 years. S. 1179 also permitted this rule as an alternative but only through 1981. The amendment which I am offering follows the S. 4 rule more closely in that plans that already have such a 10-year full vesting provisison can continue these vesting rules indefinitely in the future. However, new plans set up from Inow on must meet the general vesting rule provided in the amendment, namely 25 percent vesting at the end of 5 years and 100 percent vesting at the end of 15 years.
The amendment also follows the S. 4 vesting rules in that it provides that where An individual is covered for payments into the plan at any earlier date than generally provided under the minimum rules this period must be taken into account for purposes of applying the vesting rules.
Generally, the effective date for the vesting rules to apply is under S. 1179, plan years beginning after December 31, 1975. This rule is adopted* in this amendment. However, an exception in S. 4 is also added. It is provided in the amendment that if the Secretary of Labor finds that the implementation of the vesting requirements will impose "Substantial economic hardship" he may certify this fact to the Secretary of the Treasury and provide for the postponement of the new vesting rules in such cases for periods up to 5 years. This determination of hardship and the extent of the postponement is to be determined by the Secretary of Labor.
0A number of other vesting and participation modifications are also included in the amendment but they represent relatively minor modifications which are described in the technical memorandum which I shall submit for the record.'
Mr. President, let me turn now to the subject of the funding of retirement plans. Retirement plans cannot provide financial security to workers unless sufficient amounts of money have been contributed to them to pay the benefits promised. At present, it is clear that a significant portion of retirement plans are not adequately financed.
Both S. 4 and S. 1179 have similar provisions to correct this serious problem. Both bills recognize, tha for the' financial safety of, the

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workers contributions must be- made each year so that the plans will. accumulate sufficient funds to pay the benefits when due. At the same time, they recognize that retirement benefits involve substantial cost and, therefore, allow the employers to gradually fund the retirementbenefits as the funds are needed.
The funding provisions of S. 4 and S. 1179 are in most respects quite similar and sometimes almost identical. This amendment follows the general format of S. 1179 in the area of funding but incorporates the S. 4 rules where it appears that they. give a better result.
Both bills and this amendment provide that "current service costs" should be contributed on a current yearly basis by the employer.
Additionally, many plans give a worker credit for his service that took place before a plan went into effect, or where improvements are made in a plan, apply these improvements with respect to his past service. In these cases a plan has what is called a, past service cost liability in addition to the current service cost. S. 4, S. 1179, and this amendment require that initial past service cost generally be amortized, by the employer over a period of not more than 30 years. In addition, S. 4 recognizes that multi-employer plans may be more financially secure than single-employer plans and, therefore, allows a longer funding period in these cases. The amendment I am offering follows the S. 4 route and allows a 40-year period to amortize initial past service costs of multi-employer plans. Plan improvements, follow the same rules that I have indicated above where they are ."substantial;" that is, where they represent 5 percent or more of the past service costs, existing on the date of the amendment of the plan.
Because the costs of defined benefit plans essentially. are estimates, many future events affect the pensions that eventually are to be paid out and also affect the value of the assets of a pension plan. Where it develops that the estimates of funding requirements are too low, there are said to be experience deficiencies, and where they are too high, there are experience gains. S. 4, S. 1179, and this amendment require experience losses to be amortized over a specified period. S. 1179, which this amendment follows in this respect, requires the amortization to be over the shorter of 15 years or the average remaining service life of covered workers. S. 4 would have required these deficiencies to be written off over a 5-year period. Experience gains are to, be, written off over the same 15-year period. Plan changes which are not classified as sub-stantial generally also are to be written off over 15 years.
In the case of experience losses and for other purposes, S. 1179 and this amendment also provide the option to use up to a 5-year moving average in determining plan asset values in order to smooth out shortrun market fluctuations.
Both S. 4 and S. 1179 recognize that at times an employer will not, be able financially to meet the minimum funding requirements, and that relief must be offered. This amendment also deals with this' problem by providing that the minimum funding requirements be waived in the case of a business hardship. These waived amounts may be amortized over no more than 10 years. This particular feature is drawn from S. 1179 as also is the requirement in the bill that no more than five waivers may be granted in any 10-year period. The amendment follows the lead of S. 4,lioweve-r, by providing a' secial rule in the case of multi-em-,